Summary
Southern Company (SO) reported a significant decrease in consolidated net income attributable to Southern Company for the first quarter of 2020, down to $0.87 billion from $2.08 billion in the prior year period. This decline was primarily driven by the $2.5 billion gain on the sale of Gulf Power recognized in the first quarter of 2019. Excluding this one-time item, core operating performance showed mixed results across segments, with lower natural gas revenues due to price and volume decreases, partly offset by a slight increase in retail electric revenues driven by rate changes and customer growth. The company's operating expenses, particularly fuel and purchased power, saw a notable decrease due to lower energy prices and volumes. However, depreciation and amortization expenses increased, primarily at Georgia Power due to regulatory asset amortization and higher depreciation rates. The company continues to manage its debt and liquidity, with increased short-term borrowings and cash on hand as a precautionary measure amidst the COVID-19 pandemic's economic impacts. Georgia Power's Plant Vogtle construction remains a significant capital undertaking, with efforts underway to mitigate COVID-19 impacts on schedule and budget.
Financial Highlights
45 data points| Revenue | $5.02B |
| Cost of Revenue | $439.00M |
| Gross Profit | $4.58B |
| Operating Expenses | $3.75B |
| Operating Income | $1.26B |
| Net Income | $841.00M |
| EPS (Basic) | $0.82 |
| EPS (Diluted) | $0.81 |
| Shares Outstanding (Basic) | 1.06B |
| Shares Outstanding (Diluted) | 1.07B |
Key Highlights
- 1Consolidated net income attributable to Southern Company decreased significantly by 58.3% to $0.87 billion, largely due to the absence of a large gain from the sale of Gulf Power in the prior year.
- 2Total operating revenues decreased by 7.1% to $5.02 billion, primarily driven by a 15.3% drop in natural gas revenues and a 16.2% decrease in wholesale electric revenues.
- 3Retail electric revenues remained relatively stable, decreasing by 0.2% to $3.08 billion, with increases in rates and pricing offsetting declines in sales due to weather and customer energy-saving initiatives.
- 4Fuel and purchased power expenses decreased by 19.7% to $817 million, reflecting lower energy prices and volumes across the system.
- 5Depreciation and amortization expenses increased by 14.1% to $857 million, mainly due to higher charges at Georgia Power related to regulatory assets and depreciation rates.
- 6The company maintained substantial liquidity, with $2.17 billion in cash, cash equivalents, and restricted cash at quarter-end, and a robust $7.6 billion in unused committed credit facilities.
- 7Georgia Power's Plant Vogtle construction continues, with ongoing efforts to manage the impacts of COVID-19 on the project's schedule and workforce, though the company does not expect impacts to the total capital cost forecast or in-service dates at this time.