Summary
Southern Company (SO) reported solid financial results for the period ending September 29, 2018, with increases in net income attributable to both Alabama Power and Mississippi Power. Alabama Power saw a notable 14.8% increase in net income for the third quarter and a 17.6% year-to-date increase, largely driven by higher retail revenues from favorable weather patterns and decreased income tax expenses. Georgia Power, however, experienced a significant 47.7% year-to-date decrease in net income, primarily due to a substantial $1.1 billion charge related to its Plant Vogtle Units 3 and 4 construction project. Southern Power reported a decrease in net income attributable to Southern Power, mainly due to asset impairment charges and reduced income tax benefits. Operationally, all segments demonstrated effective cost management and operational execution, with Southern Company Gas notably completing significant dispositions of its natural gas distribution utilities, streamlining its business operations.
Financial Highlights
48 data points| Revenue | $6.16B |
| Operating Expenses | $3.98B |
| Operating Income | $2.17B |
| Net Income | $1.22B |
| EPS (Basic) | $1.14 |
| EPS (Diluted) | $1.13 |
| Shares Outstanding (Basic) | 1.02B |
| Shares Outstanding (Diluted) | 1.03B |
Key Highlights
- 1Alabama Power reported a significant increase in net income for the quarter and year-to-date, driven by favorable weather and lower income tax expenses.
- 2Georgia Power incurred a substantial $1.1 billion pre-tax charge related to its Plant Vogtle Units 3 and 4 construction project, negatively impacting its year-to-date net income.
- 3Southern Company Gas completed the disposition of three natural gas distribution utilities and one home services business, simplifying its operational footprint.
- 4Southern Power recorded asset impairment charges totaling $155 million year-to-date, primarily related to wind turbine equipment and the pending sale of Florida Plants.
- 5The company's various subsidiaries are navigating regulatory changes, including the impacts of tax reform legislation, with most expecting to recover compliance costs through existing rate-making provisions.
- 6Southern Company's overall financial condition remained stable, with management focused on capital allocation, operational efficiency, and strategic growth initiatives across its diverse energy portfolio.