Summary
Southern Company (SO) reported its first quarter 2023 results, showing a decrease in consolidated net income attributable to Southern Company to $0.9 billion ($0.79 per share) from $1.0 billion ($0.97 per share) in the prior year period. This decline was primarily driven by higher depreciation and amortization expenses, lower retail electric revenues due to milder weather and a decrease in customer usage, and increased interest expenses. These factors were partially offset by rate increases and higher other revenues across its segments. The company is actively managing its capital expenditures and financing activities, including issuing convertible senior notes and maintaining strong credit facilities to support its ongoing construction programs, notably the progress at Plant Vogtle Units 3 and 4. The company's operational performance saw mixed results across its segments. While natural gas revenues and associated costs declined due to lower natural gas prices, this was largely offset by regulatory mechanisms that align recovered costs with expenses. Southern Power demonstrated increased net income due to a gain on the sale of spare parts and higher income from tax equity partnerships. Management remains focused on executing its growth strategy, managing costs, and navigating regulatory and economic conditions, including persistent inflation and rising interest rates, to maintain financial stability and deliver shareholder value.
Financial Highlights
39 data points| Revenue | $6.48B |
| Operating Expenses | $5.26B |
| Operating Income | $1.22B |
| Net Income | $799.00M |
| EPS (Basic) | $0.79 |
| EPS (Diluted) | $0.79 |
| Shares Outstanding (Basic) | 1.09B |
| Shares Outstanding (Diluted) | 1.10B |
Key Highlights
- 1Consolidated net income attributable to Southern Company decreased to $0.9 billion ($0.79/share) in Q1 2023 from $1.0 billion ($0.97/share) in Q1 2022.
- 2Total operating revenues decreased to $6.48 billion from $6.65 billion year-over-year, primarily due to lower natural gas revenues and wholesale electric revenues.
- 3Southern Company issued $1.725 billion in Senior Notes and $225 million in Convertible Senior Notes during the quarter to manage its capital structure.
- 4Georgia Power's Plant Vogtle Unit 3 achieved initial criticality and synchronized to the grid, with Unit 3 projected to be in service in May-June 2023 and Unit 4 in late Q4 2023 or Q1 2024.
- 5Alabama Power's net income decreased due to higher depreciation rates, milder weather impacting revenues, and decreased customer usage, partially offset by lower income tax expense and increased revenues from rate filings.
- 6Southern Power's net income increased to $102 million from $72 million, driven by a gain on sale of spare parts and higher income from tax equity partnerships.
- 7Southern Company Gas reported a decrease in net income to $309 million from $319 million, mainly due to lower natural gas prices affecting revenues and a $16 million decrease in net income from gas marketing services related to hedge losses.