Summary
Southern Company (SO) reported solid financial results for the nine months ended September 30, 2019. The company demonstrated improved net income compared to the prior year, driven by increased retail revenues across its key subsidiaries, particularly Alabama Power and Georgia Power. These revenue increases were primarily attributed to rate adjustments and, in Georgia Power's case, significant recovery of prior year charges related to Plant Vogtle. While overall operating revenues saw a slight decrease driven by Southern Power's asset sales and lower wholesale energy revenues, the company's diversified operations and strategic investments in infrastructure and renewable energy projects position it for continued performance. Financially, Southern Company maintained a stable liquidity position, supported by consistent operating cash flows and effective capital management. The company continued to invest in its utility infrastructure and generation assets, with significant capital expenditures noted at Georgia Power for the ongoing Plant Vogtle project. Regulatory environments remain a key factor, with rate case filings and approvals playing a crucial role in cost recovery and future earnings potential, as seen with Alabama Power's new generating capacity plans and Georgia Power's multi-year rate plan. Investors should monitor regulatory developments and ongoing capital expenditure programs, especially the progress and cost management of Plant Vogtle.
Financial Highlights
44 data points| Revenue | $6.00B |
| Cost of Revenue | $79.00M |
| Gross Profit | $5.92B |
| Operating Expenses | $3.98B |
| Operating Income | $2.01B |
| Net Income | $1.34B |
| EPS (Basic) | $1.26 |
| EPS (Diluted) | $1.25 |
| Shares Outstanding (Basic) | 1.05B |
| Shares Outstanding (Diluted) | 1.06B |
Key Highlights
- 1Net income for the nine months ended September 30, 2019, increased compared to the same period in 2018, driven by higher retail revenues and favorable rate adjustments across key subsidiaries.
- 2Alabama Power reported a significant increase in net income, boosted by retail revenue growth from rate adjustments and capital investments.
- 3Georgia Power saw a substantial year-over-year increase in net income, largely due to the prior year's charge for Plant Vogtle units 3 and 4, coupled with increased retail revenues.
- 4Southern Power's net income attributable to Southern Power increased year-over-year, despite lower operating revenues, due to asset dispositions and a reduction in impairment charges.
- 5Southern Company Gas' net income improved year-over-year, primarily driven by lower charges related to the Kemper IGCC and an increase in base rates, partially offset by an impairment charge.
- 6Georgia Power continues to advance the Plant Vogtle Units 3 and 4 nuclear construction project, with expected in-service dates of November 2021 for Unit 3 and November 2022 for Unit 4.
- 7Alabama Power filed a petition for additional generating capacity, including turnkey construction of a new combined cycle facility and long-term power purchase agreements, reflecting ongoing capital investment plans.