Summary
Southern Company (SO) reported increased earnings from continuing operations for the second quarter and first six months of 2002 compared to the prior year, driven by higher electricity demand due to warmer weather, customer growth, and favorable regulatory rate proceedings. Total operating revenues saw a modest increase year-to-date. While fuel and other operating expenses rose, these were partially offset by lower purchased power costs. The company also announced a 3-cent increase in its annual dividend to $1.37 per share. The company continues to focus on its core Southeast utility business and its competitive generation and energy services arms, while navigating a dynamic industry landscape with evolving regulations and competition.
Key Highlights
- 1Net income from continuing operations increased to $331.4 million ($0.47 per share) for the second quarter of 2002, up from $270.4 million ($0.40 per share) in the same period of 2001.
- 2For the six months ended June 30, 2002, net income from continuing operations was $555.7 million ($0.79 per share), compared to $449.9 million ($0.66 per share) in the first half of 2001.
- 3Total operating revenues for the first six months of 2002 were $4.84 billion, a slight increase from $4.83 billion in the same period of 2001.
- 4Fuel expense increased by 4.8% in the second quarter of 2002, primarily due to increased sales and new generation units coming online.
- 5Purchased power expense decreased significantly by 37.3% in the second quarter and 38.6% year-to-date, due to lower costs and the operation of new generation units.
- 6The company raised its annual dividend by 3 cents to $1.37 per share, effective July 2002.
- 7Southern Company is actively managing its financial position, with significant property additions funded by long-term debt issuances and ongoing efforts to refinance higher-cost debt.