Summary
Southern Company's (SO) 2017 10-K filing details a complex operational landscape, including significant impacts from the Kemper County energy facility charges which led to a substantial net income decrease. The company experienced growth in its natural gas segment following the merger with Southern Company Gas. Key strategic focuses for the year included managing construction programs, particularly the ongoing development of Plant Vogtle Units 3 and 4, and navigating evolving environmental regulations. Southern Company highlighted its commitment to operational efficiency and customer satisfaction while also noting risks associated with regulatory changes, construction delays, and market volatility.
Financial Highlights
46 data pointsBeta
Financial Statements
Beta
| Revenue | $23.03B |
| Operating Expenses | $20.70B |
| Operating Income | $2.33B |
| Net Income | $926.00M |
| EPS (Basic) | $0.84 |
| EPS (Diluted) | $0.84 |
| Shares Outstanding (Basic) | 1.00B |
| Shares Outstanding (Diluted) | 1.01B |
Key Highlights
- 1Significant net income decrease in 2017, primarily due to $3.4 billion in pre-tax charges related to the Kemper IGCC project at Mississippi Power.
- 2Southern Company Gas acquisition contributed positively to earnings, showing a $240 million increase in net income for 2017 due to a full year of operations compared to a partial year in 2016.
- 3Plant Vogtle Units 3 and 4 construction continues, with expected service dates in November 2021 and November 2022, respectively. Georgia Power's revised capital cost forecast for its share is $8.8 billion.
- 4The company recorded a net, non-cash federal income tax benefit of $264 million in Q4 2017 due to the Tax Cuts and Jobs Act.
- 5Capital expenditures for the Southern Company system are projected at $9.4 billion for 2018, with significant portions allocated to new generation, environmental compliance, transmission, distribution, and Southern Company Gas infrastructure improvements.
- 6Southern Power is pursuing the sale of a 33% equity interest in its solar assets, expected to close mid-2018, with the outcome uncertain.
- 7The company's construction programs and environmental compliance spending are subject to various risks, including potential cost overruns and the inability to recover all capital expenditures through regulated rates or long-term wholesale agreements.