SOUTHERN CO Quarterly Report for Q3 Ended Sep 30, 2021

Summary

Southern Company (SO) reported its third quarter and year-to-date results for 2021. For the nine months ended September 30, 2021, Southern Company reported a net income attributable to Southern Company of $2.6 billion, a slight decrease compared to $2.7 billion in the same period of 2020. This decrease was primarily driven by higher charges related to the construction of Plant Vogtle Units 3 and 4 at Georgia Power and increased non-fuel operations and maintenance costs, partially offset by growth in retail electric and natural gas revenues. The company's total operating revenues increased for both the quarter and the year-to-date period compared to 2020, supported by higher natural gas prices and increased customer usage following pandemic-related impacts in 2020. Financially, Southern Company's total assets grew to $127.9 billion at September 30, 2021, from $122.9 billion at December 31, 2020. Long-term debt increased to $48.8 billion from $45.1 billion, while total stockholders' equity also saw an increase to $33.2 billion from $32.2 billion. The company's liquidity remains solid with substantial unused committed credit arrangements. Key financial activities during the period included managing debt, capital expenditures for construction programs, and dividend payments.

Key Highlights

• 1Southern Company's consolidated net income attributable to Southern Company for the nine months ended September 30, 2021, was $2.6 billion, a slight decrease from $2.7 billion in the prior year's comparable period.
• 2Total operating revenues increased to $17.3 billion for the nine months ended September 30, 2021, up from $15.3 billion in the same period of 2020, driven by higher natural gas revenues and increased retail electric revenues.
• 3Georgia Power recorded significant charges related to Plant Vogtle Units 3 and 4 construction, with $772 million in estimated losses for the nine months ended September 30, 2021, impacting overall profitability.
• 4The company's financial position remains stable, with total assets increasing to $127.9 billion and total stockholders' equity growing to $33.2 billion.
• 5Southern Company Gas completed the sale of Sequent on July 1, 2021, resulting in a preliminary pre-tax gain of $121 million.
• 6Significant capital expenditures were made towards construction programs, particularly the ongoing development of Plant Vogtle Units 3 and 4.
• 7The company maintained strong liquidity with substantial unused committed credit arrangements, indicating robust access to capital.

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