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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.
Southwest Gas
Southwest Gas
Southwest Gas Revenue by Segment
Revenue by Segment
Natural Gas Distribution Revenue
CapyFin.com 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.
- The timing of the release of Centuri project orders from its utility customers may be affected.