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Sep 30, 2020
Southwest Gas Q3 2020 Earnings Report
Announced consolidated earnings increase due to solid performance in infrastructure services and efficient COVID-19 impact management.
Key Takeaways
Southwest Gas Holdings reported consolidated earnings of $0.32 per diluted share for the third quarter of 2020, a $0.22 increase from $0.10 per diluted share for the third quarter of 2019. The results reflect a solid performance by the Centuri infrastructure services segment and efficient management of COVID-19 impacts in regulated utility operations.
Consolidated earnings per share increased to $0.32, up from $0.10 in Q3 2019.
Net income for the utility infrastructure services segment was $34.9 million, compared to $25.8 million in the same quarter of the previous year.
Customer growth continues to be robust with significant infrastructure installation progress.
The natural gas segment had a net loss of $16 million, compared to a net loss of $20 million in the prior year.
Revenue by Segment
Forward Guidance
Management affirms estimated 2020 diluted earnings per share between $3.75 and $4.00.
Positive Outlook
- Operating margin for the natural gas segment is anticipated to benefit from customer growth.
- Infrastructure tracker mechanisms are expected to increase operating margin.
- Expansion projects are expected to contribute to operating margin.
- Rate relief in California, Nevada, and Arizona is expected to increase operating margin.
- Centuri's revenues for 2020 are expected to be greater than 2019.
Challenges Ahead
- Governmental policies associated with COVID-19 have influenced operating results.
- Economic challenges associated with COVID-19 in the communities/operating areas have influenced operating results.
- The timing of finalizing the Arizona general rate case may affect results.
- Utility customer growth rates and employment statistics may be influenced by COVID-19.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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