Southwest Gas records profit in second quarter

Southwest Gas Corp. of Las Vegas on Monday posted a profit for the second quarter ended June 30.

The natural gas provider, which serves 1.839 million customers in Nevada, Arizona and California, said quarterly revenue increased slightly, from $385.8 million to $388.5 million.

The second quarter profit of $4 million or 9 cents per share compared to a loss in the year-ago quarter of $933,000 or 2 cents per share.

The company swung to a profit thanks to $2.6 million in income associated with increases in cash surrender values of company-owned life insurance policies.

In the 2010 second quarter, income associated with the policies fell $3.6 million.

"Second quarter 2011 results compared favorably to the second quarter of 2010. We continue to focus on minimizing cost increases and maintaining the stability of our financial results. In June 2011, Fitch upgraded our credit rating to BBB+ from BBB. This upgrade, as well as the earlier Standard & Poor's upgrade in April 2011, is indicative of our improved earnings and cash flows," CEO Jeffrey Shaw said in a statement.

Business

Share