Summary
Southern Company (SO) operates as a major energy company, primarily focused on the generation, transmission, and distribution of electricity and natural gas. In 2019, the company completed the sale of Gulf Power, which impacted its reported revenues but strengthened its financial position. The company's operations are segmented into its traditional electric utilities (Alabama Power, Georgia Power, Mississippi Power), Southern Power (wholesale electricity sales), and Southern Company Gas (natural gas distribution). Key ongoing activities include significant capital investments in construction programs, particularly for new generation assets and infrastructure upgrades, with a substantial portion allocated to Georgia Power's Plant Vogtle Units 3 and 4. The company also remains focused on environmental compliance and sustainability initiatives. Southern Company's financial performance in 2019 was significantly bolstered by the gain on the sale of Gulf Power, leading to a substantial increase in net income and improved earnings per share compared to the previous year. The company's diversified business segments provide a degree of resilience, with regulated utility operations providing a stable revenue base, while Southern Power engages in the competitive wholesale market. Investors should note the ongoing capital expenditure requirements and the company's reliance on regulatory approvals for cost recovery, which are critical factors for future performance.
Financial Highlights
45 data points| Revenue | $21.42B |
| Operating Expenses | $13.68B |
| Operating Income | $7.74B |
| Net Income | $4.74B |
| EPS (Basic) | $4.53 |
| EPS (Diluted) | $4.50 |
| Shares Outstanding (Basic) | 1.05B |
| Shares Outstanding (Diluted) | 1.05B |
Key Highlights
- 1Southern Company completed the sale of Gulf Power on January 1, 2019, for approximately $5.8 billion, resulting in a pre-tax gain of $2.6 billion.
- 2Consolidated net income attributable to Southern Company significantly increased in 2019 to $4.7 billion, primarily due to the gain on the sale of Gulf Power and a charge recorded in 2018 related to the construction of Plant Vogtle Units 3 and 4.
- 3Capital expenditures for construction programs in 2020 are projected at $8.7 billion for the Southern Company system, with significant allocations for new generation and infrastructure improvements across its operating companies.
- 4Georgia Power's Plant Vogtle Units 3 and 4 construction program remains a major capital investment, with expected in-service dates of November 2021 for Unit 3 and November 2022 for Unit 4, and an updated total project capital cost forecast of $8.4 billion for Georgia Power's ownership interest.
- 5Southern Company Gas is in the process of selling its interests in Pivotal LNG and Atlantic Coast Pipeline for an aggregate purchase price of $165 million, expecting completion in the first half of 2020.
- 6The company paid dividends per share of common stock of $2.46 in 2019, a slight increase from $2.38 in 2018.
- 7The company's business segments are regulated, with rates for traditional electric operating companies and natural gas distribution utilities subject to approval by state Public Service Commissions.