Summary
Southern Company (SO) reported its second quarter 2015 results, with a focus on its primary operating utilities: Alabama Power, Georgia Power, Gulf Power, and Mississippi Power, as well as Southern Power, its wholesale generation subsidiary. Overall, the company demonstrated a mixed financial performance across its subsidiaries, with some segments showing revenue growth driven by rate increases, while others experienced declines due to decreased wholesale sales and higher operating expenses. Key financial highlights include increased net income for Alabama Power due to rate adjustments and warmer weather, while Georgia Power saw a decrease in net income attributed to higher operating expenses and a billing error correction. Mississippi Power's results were significantly impacted by ongoing issues with the Kemper IGCC project, including cost overruns and regulatory setbacks. Southern Power, the wholesale arm, reported improved net income driven by increased affiliate sales and lower fuel costs. Investors should note the significant ongoing regulatory and construction challenges at Mississippi Power, particularly concerning the Kemper IGCC project, which pose risks to future earnings and financial stability.
Financial Highlights
31 data points| Revenue | $4.34B |
| Operating Expenses | $3.24B |
| Operating Income | $1.10B |
| Net Income | $643.00M |
| EPS (Basic) | $0.69 |
| EPS (Diluted) | $0.69 |
| Shares Outstanding (Basic) | 909.00M |
| Shares Outstanding (Diluted) | 912.00M |
Key Highlights
- 1Alabama Power reported a 15.6% increase in net income for the second quarter of 2015 compared to the prior year, primarily driven by rate increases and warmer weather.
- 2Georgia Power's net income decreased by 10.9% in the second quarter of 2015 due to higher non-fuel operations and maintenance expenses and a billing error correction.
- 3Mississippi Power is facing significant financial challenges related to the Kemper IGCC project, with cost overruns leading to substantial charges and regulatory uncertainty impacting rate recovery.
- 4Southern Power, the wholesale subsidiary, saw a 48.4% increase in net income for the second quarter of 2015, benefiting from increased affiliate sales and lower fuel and purchased power expenses.
- 5Total operating revenues for the parent company, Southern Company, saw a slight decrease year-over-year, reflecting mixed performance across its operating subsidiaries.
- 6The company is actively managing environmental compliance costs, with significant discussions and potential impacts arising from new EPA regulations on air and water quality.
- 7Southern Company's financial position remains stable overall, with significant capital expenditures ongoing, particularly for construction projects like Plant Vogtle.