Summary
Southern Company (SO) reported a strong third quarter and year-to-date performance for 2022, driven by increased operating revenues across its electric and gas segments. Total operating revenues for the quarter rose to $8.4 billion, a significant increase from $6.2 billion in the prior year, and year-to-date revenues reached $22.2 billion, up from $17.3 billion in 2021. This growth was largely attributed to higher retail electric revenues, driven by rate increases and sales growth, as well as higher natural gas revenues due to rate adjustments and infrastructure investments. Net income attributable to Southern Company also saw a substantial increase, reaching $1.5 billion for the quarter and $3.6 billion year-to-date, up from $1.1 billion and $2.6 billion, respectively, in the prior year. This improvement was bolstered by reduced charges related to the Plant Vogtle construction project and favorable regulatory outcomes. Despite these positive financial results, investors should note the ongoing complexities and potential risks associated with the Plant Vogtle Units 3 and 4 construction. While Unit 3 is nearing completion and projected for service in early 2023, and Unit 4 in late 2023, there remain cost-sharing disputes with other Vogtle owners and potential for further schedule delays and cost increases. Southern Company's balance sheet reflects increased property, plant, and equipment and higher debt levels, largely due to ongoing capital investments across its subsidiaries. The company maintains significant unused credit facilities, indicating strong liquidity. Overall, Southern Company demonstrated robust operational and financial performance in the period, benefiting from higher energy prices and regulatory recoveries, while managing significant capital expenditure programs and ongoing project development. The company's focus remains on integrating new projects and navigating regulatory environments to ensure continued recovery of investments.
Financial Highlights
41 data points| Revenue | $8.38B |
| Operating Expenses | $6.18B |
| Operating Income | $2.19B |
| Net Income | $1.47B |
| EPS (Basic) | $1.36 |
| EPS (Diluted) | $1.35 |
| Shares Outstanding (Basic) | 1.08B |
| Shares Outstanding (Diluted) | 1.09B |
Key Highlights
- 1Southern Company reported a significant increase in total operating revenues to $8.4 billion for Q3 2022, up from $6.2 billion in Q3 2021, and year-to-date revenues of $22.2 billion, up from $17.3 billion.
- 2Net income attributable to Southern Company surged to $1.5 billion ($1.36/share) in Q3 2022 from $1.1 billion ($1.04/share) in Q3 2021, and year-to-date net income increased to $3.6 billion ($3.38/share) from $2.6 billion ($2.46/share).
- 3The increase in revenues and net income was primarily driven by higher retail electric revenues due to rate increases, sales growth, and favorable weather, along with increased natural gas revenues.
- 4Reduced charges related to the Plant Vogtle Units 3 and 4 construction project significantly contributed to the improved net income.
- 5Alabama Power completed the acquisition of Calhoun Generating Station and saw rate increases approved for Rate ECR and modifications to Rate NDR.
- 6Southern Power's total operating revenues increased by 74% year-over-year in Q3 2022, driven by higher market prices for energy and increased sales under natural gas PPAs.
- 7Southern Company Gas reported increased net income, driven by base rate increases and infrastructure investments at its gas distribution operations, as well as higher earnings from gas pipeline investments.