Summary
Southern Company (SO) reported mixed financial results for the six months ended June 30, 2021. While consolidated net income attributable to Southern Company increased slightly to $1.51 billion from $1.48 billion in the prior year, driven by higher retail and wholesale electric revenues, the second quarter results showed a significant decline. Consolidated net income attributable to Southern Company for the second quarter decreased to $372 million from $612 million in the prior year. This decline was primarily attributed to substantial after-tax charges related to the ongoing construction of Plant Vogtle Units 3 and 4 at Georgia Power, as well as an impairment charge at Southern Company Gas. The company's balance sheet reflects a notable increase in long-term debt, largely due to new issuances to support capital expenditures for construction programs, including Plant Vogtle. Southern Power's acquisition of the Deuel Harvest wind facility also contributed to increased property, plant, and equipment. Despite these investments and charges, Southern Company maintained a strong liquidity position with substantial unused committed credit facilities.
Financial Highlights
45 data points| Revenue | $5.20B |
| Cost of Revenue | $231.00M |
| Gross Profit | $4.97B |
| Operating Expenses | $4.49B |
| Operating Income | $708.00M |
| Net Income | $376.00M |
| EPS (Basic) | $0.35 |
| EPS (Diluted) | $0.35 |
| Shares Outstanding (Basic) | 1.06B |
| Shares Outstanding (Diluted) | 1.07B |
Key Highlights
- 1Consolidated net income attributable to Southern Company for the first six months of 2021 increased slightly to $1.51 billion ($1.42 per share) from $1.48 billion ($1.40 per share) in the same period of 2020.
- 2However, net income for the second quarter of 2021 significantly decreased to $372 million ($0.35 per share) from $612 million ($0.58 per share) in the second quarter of 2020.
- 3The decline in second-quarter net income was primarily driven by $232 million in increased after-tax charges related to the construction of Plant Vogtle Units 3 and 4 at Georgia Power and an impairment charge at Southern Company Gas.
- 4Total operating revenues for the six months ended June 30, 2021, increased to $11.1 billion from $9.6 billion in the prior year, with growth across retail electric, wholesale electric, and natural gas revenues.
- 5The company's total assets increased to $125.9 billion at June 30, 2021, from $122.9 billion at December 31, 2020, with significant increases in property, plant, and equipment, partly due to capital expenditures and an acquisition by Southern Power.
- 6Long-term debt increased to $47.8 billion at June 30, 2021, from $45.1 billion at December 31, 2020, reflecting new debt issuances to fund construction programs.
- 7Southern Company maintained robust liquidity with $7.55 billion in unused committed credit facilities at June 30, 2021.