Summary
Southern Company (SO) reported its first quarter 2022 financial results, showing a slight decrease in consolidated net income attributable to Southern Company to $1.032 billion, or $0.97 per share, down from $1.135 billion, or $1.07 per share, in the first quarter of 2021. This decline was primarily influenced by the prior year's inclusion of net income from the now-sold Sequent business and higher non-fuel operations and maintenance costs. Despite the dip in net income, total operating revenues saw a healthy increase, reaching $6.648 billion compared to $5.910 billion in the prior year's quarter, driven by higher retail electric revenues and substantial growth in natural gas revenues, reflecting increased sales volumes and higher commodity prices. Key operational drivers included improved performance across the traditional electric utilities, with Georgia Power reporting a notable increase in net income largely due to base tariff adjustments and the absence of a prior year charge related to Plant Vogtle. Southern Company Gas also demonstrated resilience, with gas distribution operations benefiting from rate increases and infrastructure investments, although overall net income was impacted by the sale of Sequent. Southern Power experienced a decrease in net income attributable to noncontrolling interests due to higher loss allocations in new partnerships, despite an overall increase in operating revenues driven by new natural gas PPAs and higher energy prices. Investors should note the ongoing significant capital expenditures, particularly for Georgia Power's Plant Vogtle Units 3 and 4, which continue to represent a substantial financial commitment and potential risk. The company's strong operating cash flows and access to credit facilities provide a solid financial foundation to manage these investments.
Financial Highlights
41 data points| Revenue | $6.65B |
| Operating Expenses | $5.26B |
| Operating Income | $1.38B |
| Net Income | $991.00M |
| EPS (Basic) | $0.97 |
| EPS (Diluted) | $0.97 |
| Shares Outstanding (Basic) | 1.06B |
| Shares Outstanding (Diluted) | 1.07B |
Key Highlights
- 1Total operating revenues increased by 12.5% year-over-year to $6.648 billion.
- 2Consolidated net income attributable to Southern Company decreased by 8.8% to $1.032 billion.
- 3Earnings per share (diluted) decreased to $0.97 from $1.06 year-over-year.
- 4Retail electric revenues increased by 8.1% to $3.613 billion, driven by rate increases and sales growth.
- 5Natural gas revenues increased significantly by 21.5% to $2.058 billion, primarily due to higher commodity prices and volumes.
- 6Georgia Power's net income increased by 9.7% to $385 million, benefiting from rate increases and the absence of prior year charges.
- 7Southern Company Gas' net income decreased by 19.8% to $319 million, largely due to the prior year's inclusion of its sold Sequent business.