SOUTHERN CO Quarterly Report for Q1 Ended Mar 31, 2013

Summary

Southern Company (SO) reported its first quarter results for 2013, demonstrating stable financial performance with increases in operating revenues and net income driven by factors like favorable weather. The company continues to invest heavily in its construction program, including significant projects like the Kemper IGCC and Plant Vogtle nuclear units. Despite a substantial $540 million pretax charge recorded by Mississippi Power related to cost overruns at the Kemper IGCC project, Southern Company's overall financial health remains sound. Management is actively managing environmental compliance costs and regulatory matters, with several key rulings and proposals impacting future operations. The company also highlighted its ongoing share repurchase program and continued dividend payments, signaling confidence in its financial stability and commitment to shareholder returns.

Key Highlights

• 1Mississippi Power recorded a significant $540 million pretax charge due to cost overruns on the Kemper IGCC project, exceeding the established cost cap.
• 2Alabama Power reported a 5.4% increase in net income for the quarter, driven by favorable weather and increased retail revenues.
• 3Georgia Power saw a 18.0% increase in net income, attributed to higher retail base revenues and favorable weather conditions.
• 4Southern Power's wholesale revenues from non-affiliates surged by 59.0% due to increased energy sales and higher prices.
• 5The company is actively managing environmental compliance, noting updates on EPA rules like MATS and proposed water quality regulations, with potential impacts on capital expenditures.
• 6Southern Company's financial condition is described as stable, with continued access to capital markets to fund its ongoing construction programs.
• 7The company reaffirmed its commitment to shareholder returns, with a quarterly dividend payment and a share repurchase program in place.

Frequently Asked Questions