Las Vegas, NV-based Southwest Gas Corp. Monday reported increased consolidated profits for 2004, with $56.8 million net income for the year, or $1.61/share, compared with $38.5 million, or $1.14/share, in 2003. Fourth quarter 2004 results were also up ($40.4 million, or $1.12/share, compared to $34.5 million, or $1.01/share in the last quarter of 2003).

Consolidated operating revenues hit $1.47 billion last year, compared with $1.23 billion in 2003, said Southwest CEO Jeffrey Shaw, who called last year’s results a solid improvement that he attributed to a combination of factors, including, rate relief in Nevada and California, a return to more normal weather patterns, record customer growth, and “a stellar contribution from our pipeline construction subsidiary.”

Shaw said that Southwest’s NPL Construction Co., a wholly owned subsidiary, achieved record net income of $8.4 million last year, compared to $4.3 million in 2003, but he did not expect similar results this year, “given the cyclical nature of the construction business.”

For the natural gas utility operations in Nevada, Arizona and the eastern desert/mountain regions of California, Southwest’s “operating margin” (revenues minus the cost of gas sold) increased by $64 million in 2004, compared to the previous year, the company reported. Operating expenses increased $35 million, or 8%, compared to the previous year.

Southwest said a record 82,000 customers were added in 2004, which is the fifth time in 10 years the company has set a new annual growth record. “New customers contributed $21 million in incremental margin,” Shaw said.

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