Pacific Lighting, the Los Angeles-based parent of Southern California Gas, said its first-quarter net income fell to $44.54 million, or $1.06 per share, from $49.86 million, or $1.24 per share, a year ago, for an 11% decline.
Revenue for the calendar quarter fell 18% to $1.12 billion from $1.38 billion a year ago.
Pacific Lighting said that income from its Southern California Gas subsidiary increased 5.7% to $38.6 million from $36.5 million, despite a $2-million write-down.
The write-down reflects the possibility that the state Public Utilities Commission might lower the gas company’s 13.04% rate of return on investment, retroactive to Jan. 1, a spokesman for the gas company said.
Other business segments showed year-to-year drops in income. Net income from oil and gas production fell 42.2% to $3.7 million from $6.4 million. Pacific Lighting blamed the decline on the recent sharp decline in oil prices.
The company said additionally that if oil prices do not recover, it will have to write down all of its oil and gas reserves during 1986. Its oil and gas reserves were valued at $443 million on Dec. 31, 1985.
Income from Pacific Lighting’s land development operations, which includes housing and commercial development in Southern California, Arizona and New Mexico, fell 47% to $2.8 million from $5.2 million a year ago.