Summary
Southern Company (SO) reported a decline in net income for the first six months of 2020 compared to the same period in 2019. This decrease was primarily driven by a significant gain on the sale of Gulf Power in the prior year, coupled with the impact of the COVID-19 pandemic on retail electric revenues. Despite a decrease in total operating revenues, the company demonstrated resilience through cost containment measures and favorable regulatory adjustments. Notably, Georgia Power recorded a substantial charge related to the ongoing construction of Plant Vogtle Units 3 and 4, reflecting revised cost forecasts and the impact of COVID-19 on project productivity. Operationally, Southern Company experienced mixed results across its segments. While retail electric revenues saw a decline due to milder weather and lower customer usage impacted by the pandemic, wholesale electric and natural gas revenues also decreased, influenced by lower commodity prices and reduced demand. The company continues to manage its financial position through disciplined capital deployment and remains focused on long-term growth strategies, particularly in renewable energy through Southern Power and infrastructure improvements in its gas distribution segment.
Financial Highlights
45 data points| Revenue | $4.62B |
| Cost of Revenue | $144.00M |
| Gross Profit | $4.48B |
| Operating Expenses | $3.56B |
| Operating Income | $1.06B |
| Net Income | $612.00M |
| EPS (Basic) | $0.58 |
| EPS (Diluted) | $0.58 |
| Shares Outstanding (Basic) | 1.06B |
| Shares Outstanding (Diluted) | 1.06B |
Key Highlights
- 1Consolidated net income attributable to Southern Company decreased to $1.48 billion for the first six months of 2020 from $2.98 billion in the same period of 2019, largely due to the prior year's gain from the sale of Gulf Power.
- 2Total operating revenues declined to $9.64 billion for the first six months of 2020, down from $10.51 billion in the prior year, impacted by milder weather and lower customer usage due to COVID-19.
- 3Georgia Power recorded a pre-tax charge of $149 million ($111 million after tax) for the increase in the total project capital cost forecast for Plant Vogtle Units 3 and 4.
- 4Alabama Power's net income after preferred dividends increased slightly to $578 million for the first six months of 2020, driven by lower operations and maintenance expenses.
- 5Southern Power saw a decrease in net income attributable to Southern Power to $138 million for the first six months of 2020, primarily due to the prior year's gain on the sale of Plant Nacogdoches.
- 6Southern Company Gas' net income decreased to $346 million for the first six months of 2020, mainly due to reduced natural gas price volatility and lower earnings at wholesale gas services.
- 7Southern Company's total debt increased to $45.14 billion at June 30, 2020, from $41.80 billion at December 31, 2019, reflecting increased long-term borrowings.