Early Access

10-QPeriod: Q1 FY2021

SOUTHERN CO Quarterly Report for Q1 Ended Mar 31, 2021

Filed April 29, 2021For Securities:SOSOJESOJFSOJCSOJDSOMN

Summary

Southern Company reported a strong first quarter of 2021, with consolidated net income attributable to Southern Company increasing by 30.8% to $1.1 billion ($1.07 per diluted share) compared to the same period in 2020. This growth was primarily driven by higher natural gas and retail electric revenues, influenced by colder weather conditions and increased volumes, although partially offset by higher natural gas costs. The company's diversified segments, including traditional electric utilities and natural gas distribution, demonstrated resilience. Key operational highlights include significant year-over-year growth in natural gas revenues (35.6%) and wholesale electric revenues (30.4%), reflecting robust demand and improved pricing. Despite ongoing challenges related to the COVID-19 pandemic impacting customer usage in some areas, the company's proactive management of regulatory matters and infrastructure investments are supporting stable financial performance. Investors should note the ongoing significant capital expenditures related to the Plant Vogtle Units 3 and 4 construction, which incurred an additional estimated loss provision, but remain a critical long-term growth driver.

Financial Statements
Beta
Revenue$5.91B
Cost of Revenue$583.00M
Gross Profit$5.33B
Operating Expenses$4.31B
Operating Income$1.60B
Net Income$1.11B
EPS (Basic)$1.07
EPS (Diluted)$1.06
Shares Outstanding (Basic)1.06B
Shares Outstanding (Diluted)1.07B

Key Highlights

  • 1Consolidated net income attributable to Southern Company increased by 30.8% to $1.1 billion in Q1 2021.
  • 2Earnings per diluted share rose to $1.07 in Q1 2021, up from $0.81 in Q1 2020.
  • 3Total operating revenues grew by 17.8% to $5.91 billion in Q1 2021.
  • 4Natural gas revenues saw a substantial increase of 35.6% to $1.7 billion, driven by colder weather and higher volumes.
  • 5Wholesale electric revenues increased by 30.4% to $545 million, benefiting from higher energy revenues and new power sales agreements.
  • 6Georgia Power recorded a $48 million pre-tax charge related to an increase in the estimated capital cost forecast for Plant Vogtle Units 3 and 4.
  • 7Southern Power acquired a controlling interest in the Deuel Harvest wind facility and continues construction on battery storage and wind projects.

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