Summary
Southern Company's (SO) third quarter 2013 report indicates varied performance across its subsidiaries. While Alabama Power and Georgia Power showed slight declines in net income compared to the prior year, driven by factors like less favorable weather and increased O&M expenses, Mississippi Power experienced a significant net loss due to substantial charges related to the Kemper IGCC project's cost overruns and schedule delays. Southern Power, focused on wholesale energy markets, saw an increase in net income driven by higher energy sales and prices. Across the group, ongoing capital expenditures for infrastructure, environmental compliance, and new generation projects, particularly Mississippi Power's Kemper IGCC, are key areas of focus. Regulatory environments and cost recovery mechanisms remain critical for financial performance, with several subsidiaries engaging in rate case filings and adjustments. Investors should monitor the progress and cost implications of the Kemper IGCC, as well as the impact of environmental regulations on future capital spending and operations.
Financial Highlights
42 data points| Revenue | $5.02B |
| Operating Expenses | $3.53B |
| Operating Income | $1.49B |
| Net Income | $869.00M |
| EPS (Basic) | $0.97 |
| EPS (Diluted) | $0.97 |
| Shares Outstanding (Basic) | 878.00M |
| Shares Outstanding (Diluted) | 881.00M |
Key Highlights
- 1Mississippi Power reported a significant net loss primarily due to substantial charges related to cost overruns and schedule delays for the Kemper IGCC project, increasing the total estimated cost to approximately $4.02 billion.
- 2Alabama Power's net income decreased by 7.9% in Q3 2013 compared to Q3 2012, attributed to less favorable weather and increased operations and maintenance expenses.
- 3Georgia Power's net income also saw a decline of 7.2% in Q3 2013 compared to Q3 2012, mainly due to less favorable weather and higher depreciation and amortization expenses.
- 4Southern Power demonstrated growth, with net income increasing by 24.5% in Q3 2013 compared to Q3 2012, driven by higher wholesale revenues from increased energy sales and prices.
- 5The company is undertaking significant capital expenditures for plant upgrades, environmental compliance, and new generation projects, with Mississippi Power's Kemper IGCC being the most substantial and concerning item.
- 6Several subsidiaries are actively involved in regulatory proceedings, including rate case filings and adjustments, impacting future revenue recovery and customer pricing.
- 7All listed companies confirmed their compliance with debt covenants, and the parent company, Southern Company, has access to significant committed credit arrangements for liquidity support.