Summary
Southern Company (SO) reported its third-quarter 2023 financial results, showing a slight decrease in net income attributable to common shareholders compared to the same period in the prior year. This was primarily driven by higher costs associated with the construction and start-up of Plant Vogtle Units 3 and 4, increased depreciation and amortization expenses, and higher interest expenses. These headwinds were partially offset by stronger retail electric revenues, particularly at Georgia Power and Alabama Power, due to warmer weather and favorable rate adjustments, as well as lower non-fuel operations and maintenance costs and reduced income tax expenses. For the first nine months of 2023, Southern Company's net income also saw a decline, largely impacted by the same factors that affected the third quarter, alongside milder weather in the early part of the year. Despite these pressures, the company's operating segments, including its regulated utilities and Southern Power, continue to generate substantial operating cash flows. Southern Company has also been active in managing its capital structure, issuing new debt while also repaying existing obligations. The company's long-term outlook remains focused on its ongoing construction projects, regulatory filings, and disciplined capital allocation to support its utility operations and growth initiatives.
Financial Highlights
40 data points| Revenue | $6.98B |
| Operating Expenses | $4.87B |
| Operating Income | $2.11B |
| Net Income | $1.42B |
| EPS (Basic) | $1.30 |
| EPS (Diluted) | $1.29 |
| Shares Outstanding (Basic) | 1.09B |
| Shares Outstanding (Diluted) | 1.10B |
Key Highlights
- 1Consolidated net income attributable to Southern Company decreased by 3.4% to $1.42 billion ($1.30 per share) in Q3 2023 compared to $1.47 billion ($1.35 per share) in Q3 2022.
- 2Year-to-date net income attributable to Southern Company decreased by 13.6% to $3.12 billion ($2.86 per share) in the first nine months of 2023 compared to $3.56 billion ($3.38 per share) in the first nine months of 2022.
- 3Total operating revenues decreased to $6.98 billion in Q3 2023 from $8.38 billion in Q3 2022, primarily due to lower fuel and purchased power costs and reduced wholesale electric revenues.
- 4Georgia Power's net income decreased in Q3 2023 due to increased costs related to Plant Vogtle Units 3 and 4, higher interest expenses, and increased depreciation, partially offset by higher retail revenues.
- 5Alabama Power's net income saw a year-over-year increase in Q3 2023, driven by lower income taxes and higher retail revenues, despite increased depreciation expenses.
- 6Southern Power's net income increased year-over-year for both the third quarter and year-to-date periods, largely benefiting from an arbitration interim award and higher HLBV income from tax equity partnerships.
- 7Southern Company Gas experienced a slight decrease in year-to-date net income due to a regulatory disallowance at Nicor Gas and lower net income at gas marketing services.