Summary
Southern Company (SO) operates as a prominent utility, providing electric services across Alabama, Georgia, Florida, and Mississippi through its four primary operating subsidiaries: Alabama Power, Georgia Power, Gulf Power, and Mississippi Power. The company also engages in wholesale electricity sales and generation asset management through Southern Power Company, and has diversified interests in telecommunications and leveraged leases. For the fiscal year ending December 30, 2013, Southern Company reported a net income of $1.6 billion, a decrease of 30% from the previous year, largely attributed to significant pre-tax charges of $1.2 billion related to cost revisions for the Kemper IGCC project. Despite this, the company maintained a stable financial condition. Key operational highlights included better-than-target peak season plant availability for fossil/hydro plants and improved transmission/distribution system reliability. However, earnings per share (EPS) on a GAAP basis did not meet targets due to the Kemper IGCC charges. The company also continued its significant construction program, with major investments in Plant Vogtle Units 3 and 4 and the Kemper IGCC, subject to various risks including cost overruns and delays.
Financial Highlights
44 data points| Revenue | $17.09B |
| Operating Expenses | $13.83B |
| Operating Income | $3.25B |
| Net Income | $1.71B |
| EPS (Basic) | $1.88 |
| EPS (Diluted) | $1.87 |
| Shares Outstanding (Basic) | 877.00M |
| Shares Outstanding (Diluted) | 881.00M |
Key Highlights
- 1Southern Company operates through four traditional operating subsidiaries (Alabama Power, Georgia Power, Gulf Power, Mississippi Power) and Southern Power Company, serving customers across four Southeastern states.
- 2Net income for 2013 was $1.6 billion, a 30% decrease from 2012, primarily due to $1.2 billion in pre-tax charges related to cost revisions for the Kemper IGCC project.
- 3The company reported strong operational performance with improved plant availability and system reliability in key metrics.
- 4Southern Company's construction program includes significant investments in major projects like Plant Vogtle Units 3 and 4 and the Kemper IGCC, which carry associated risks related to cost overruns and project completion timelines.
- 5The company's strategy involves a balanced approach to regulated operations and competitive wholesale market participation through Southern Power, focusing on long-term capacity contracts.
- 6Environmental compliance remains a significant focus, with substantial capital expenditures projected for the coming years to meet evolving regulations under the Clean Air Act and other environmental statutes.