ATLANTA, May 2, 2024
/PRNewswire/ -- Southern Company today reported first-quarter
earnings of $1.1 billion, or
$1.03 per share, in 2024 compared
with earnings of $862 million, or
79 cents per share, in the first
quarter of 2023.
Excluding the items described under "Net Income – Excluding
Items" in the table below, Southern Company earned $1.1 billion, or $1.03 per share, during the first quarter of
2024, compared with $867 million, or
79 cents per share, during the first
quarter of 2023.
|
Non-GAAP Financial
Measures
|
Three Months Ended
March
|
|
Net Income –
Excluding Items (in millions)
|
2024
|
2023
|
|
Net Income – As
Reported
|
$
1,129
|
$
862
|
|
Less:
|
|
|
|
Estimated Loss on
Plants Under Construction
|
(4)
|
(2)
|
|
Tax Impact
|
1
|
1
|
|
Loss on Extinguishment
of Debt
|
—
|
(5)
|
|
Tax Impact
|
—
|
1
|
|
Net Income –
Excluding Items
|
$
1,132
|
$
867
|
|
Average Shares
Outstanding – (in
millions)
|
1,094
|
1,091
|
|
Basic Earnings Per
Share - Excluding Items
|
$
1.03
|
$
0.79
|
|
|
|
NOTE:
|
For more information
regarding these non-GAAP adjustments, see the footnotes
accompanying the Financial Highlights page of the earnings
package.
|
Adjusted earnings drivers for the first quarter 2024, as
compared with 2023, were higher utility revenues, partially offset
by increased interest expense and depreciation and
amortization.
First-quarter 2024 operating revenues were $6.6 billion, compared with $6.5 billion for the first quarter of 2023, an
increase of 2.6%.
"All our businesses experienced a strong start to 2024," said
Chairman, President and CEO Christopher C.
Womack. "This performance was driven by a variety of
factors, including investments in our state-regulated utilities,
weather that was less mild than the first quarter of last year and
higher weather-adjusted sales in our electric utilities' commercial
customer class, a fact that speaks to strong local economies and
increased usage by many existing data center customers."
"We were also pleased to announce earlier this week that Plant
Vogtle Unit 4 has achieved commercial operation," added Womack.
"New units 3 and 4 are now positioned to deliver more than 2,200
megawatts of reliable, carbon-free energy for decades to come. With
all four units operational, Plant Vogtle is now the largest
generator of clean energy in the United
States. This monumental achievement is a testament not only
to the commitment and perseverance of our Southern Company team,
but to the hard work and dedication of thousands of American craft
workers and engineers, our Plant Vogtle co-owners and enlightened
regulators who championed the development of new nuclear
generation."
Southern Company's first-quarter earnings slides with
supplemental financial information are available at
investor.southerncompany.com.
Southern Company's financial analyst call will begin at
1 p.m. Eastern Time today, during
which Womack and Chief Financial Officer Daniel S. Tucker will discuss earnings and
provide a general business update. Investors, media and the public
may listen to a live webcast of the call and view associated slides
at investor.southerncompany.com. A replay of the webcast will be
available on the site for 12 months.
About Southern Company
Southern Company (NYSE: SO) is
a leading energy provider serving 9 million customers across the
Southeast and beyond through its family of companies. Providing
clean, safe, reliable and affordable energy with excellent service
is our mission. The company has electric operating companies in
three states, natural gas distribution companies in four states, a
competitive generation company, a leading distributed energy
distribution company with national capabilities, a fiber optics
network and telecommunications services. Through an
industry-leading commitment to innovation, resilience and
sustainability, we are taking action to meet customers' and
communities' needs while advancing our goal of net zero greenhouse
gas emissions by 2050. Our uncompromising values ensure we put the
needs of those we serve at the center of everything we do and are
the key to our sustained success. We are transforming energy into
economic, environmental and social progress for tomorrow. Our
corporate culture and hiring practices have earned the company
national awards and recognition from numerous organizations,
including Forbes, The Military Times, DiversityInc, Black
Enterprise, J.D. Power, Fortune, Human Rights Campaign and more. To
learn more, visit southerncompany.com.
|
Southern
Company
|
|
Financial
Highlights
|
|
(In Millions
Except Earnings Per Share)
|
|
|
|
|
|
Three Months Ended
March
|
|
Net Income – As
Reported
|
2024
|
|
2023
|
|
Traditional
Electric Operating Companies
|
$
819
|
|
$
610
|
|
Southern
Power
|
96
|
|
102
|
|
Southern Company
Gas
|
409
|
|
309
|
|
Total
|
1,324
|
|
1,021
|
|
Parent Company
and Other
|
(195)
|
|
(159)
|
|
Net Income –
As Reported
|
$
1,129
|
|
$
862
|
|
|
|
|
|
Basic Earnings
Per Share(1)
|
$
1.03
|
|
$
0.79
|
|
Average Shares
Outstanding
|
1,094
|
|
1,091
|
|
|
|
|
|
Non-GAAP Financial
Measures
|
Three Months Ended
March
|
|
Net Income –
Excluding Items
|
2024
|
|
2023
|
|
Net Income – As
Reported
|
$
1,129
|
|
$
862
|
|
Less:
|
|
|
|
|
Estimated Loss on
Plants Under Construction(2)
|
(4)
|
|
(2)
|
|
Tax Impact
|
1
|
|
1
|
|
Loss on Extinguishment
of Debt(3)
|
—
|
|
(5)
|
|
Tax Impact
|
—
|
|
1
|
|
Net Income –
Excluding Items
|
$
1,132
|
|
$
867
|
|
|
|
|
|
Basic Earnings
Per Share – Excluding Items
|
$
1.03
|
|
$
0.79
|
|
|
|
See Notes on the
following page.
|
|
Southern
Company
Financial Highlights
|
|
|
|
Notes
|
|
|
(1)
|
Dilution is not
material in any period presented. Diluted earnings per share was
$1.03 and $0.79 for the three months ended March 31, 2024 and 2023,
respectively.
|
|
|
|
(2)
|
Earnings for the three
months ended March 31, 2024 and 2023 include charges (net of
salvage proceeds), associated legal expenses (net of insurance
recoveries), and tax impacts related to Mississippi Power Company's
integrated coal gasification combined cycle facility project in
Kemper County, Mississippi. Mississippi Power Company expects to
incur additional pre-tax period costs to complete dismantlement of
the abandoned gasifier-related assets and site restoration
activities, including related costs for compliance and safety,
asset retirement obligation accretion, and property taxes, net of
salvage, totaling approximately $15 million annually through 2025.
Additionally, further charges and/or credits related to estimated
probable loss on Georgia Power Company's construction of Plant
Vogtle Units 3 and 4 may occur; however, the amount and timing are
uncertain.
|
|
|
|
(3)
|
Earnings for the three
months ended March 31, 2023 include costs associated with the
extinguishment of debt at Southern Company. Similar transaction
costs may occur in the future at Southern Company or one of its
unregulated subsidiaries; however, the amount and timing of any
such costs are uncertain.
|
|
Southern
Company
|
|
Significant Factors
Impacting EPS
|
|
|
|
|
|
|
|
Three Months Ended
March
|
|
2024
|
|
2023
|
|
Change
|
|
Earnings Per Share
–
|
|
|
|
|
|
|
As
Reported(1)
|
$
1.03
|
|
$
0.79
|
|
$
0.24
|
|
|
|
|
|
|
|
Significant
Factors:
|
|
|
|
|
|
|
Traditional
Electric Operating Companies
|
|
|
|
|
$
0.19
|
|
Southern
Power
|
|
|
|
|
(0.01)
|
|
Southern Company
Gas
|
|
|
|
|
0.09
|
|
Parent Company and
Other
|
|
|
|
|
(0.03)
|
|
Increase in
Shares
|
|
|
|
|
—
|
|
Total – As
Reported
|
|
|
|
|
$
0.24
|
|
|
|
|
|
|
|
Three Months Ended
March
|
|
Non-GAAP Financial
Measures
|
2024
|
|
2023
|
|
Change
|
|
Earnings Per Share
–
|
|
|
|
|
|
|
Excluding
Items
|
$
1.03
|
|
$
0.79
|
|
$
0.24
|
|
|
|
|
|
|
|
Total – As
Reported
|
|
|
|
|
$
0.24
|
|
Less:
|
|
|
|
|
|
|
Estimated Loss on
Plants Under Construction(2)
|
|
|
|
|
—
|
|
Loss on Extinguishment
of Debt(3)
|
|
|
|
|
—
|
|
Total –
Excluding Items
|
|
|
|
|
$
0.24
|
|
|
|
See Notes on the
following page.
|
|
Southern
Company
Significant Factors Impacting EPS
|
|
|
|
Notes
|
|
|
(1)
|
Dilution is not
material in any period presented. Diluted earnings per share was
$1.03 and $0.79 for the three months ended March 31, 2024 and 2023,
respectively.
|
|
|
|
(2)
|
Earnings for the three
months ended March 31, 2024 and 2023 include charges (net of
salvage proceeds), associated legal expenses (net of insurance
recoveries), and tax impacts related to Mississippi Power Company's
integrated coal gasification combined cycle facility project in
Kemper County, Mississippi. Mississippi Power Company expects to
incur additional pre-tax period costs to complete dismantlement of
the abandoned gasifier-related assets and site restoration
activities, including related costs for compliance and safety,
asset retirement obligation accretion, and property taxes, net of
salvage, totaling approximately $15 million annually through 2025.
Additionally, further charges and/or credits related to estimated
probable loss on Georgia Power Company's construction of Plant
Vogtle Units 3 and 4 may occur; however, the amount and timing are
uncertain.
|
|
|
|
(3)
|
Earnings for the three
months ended March 31, 2023 include costs associated with the
extinguishment of debt at Southern Company. Similar transaction
costs may occur in the future at Southern Company or one of its
unregulated subsidiaries; however, the amount and timing of any
such costs are uncertain.
|
|
Southern
Company
|
|
EPS Earnings
Analysis
|
|
Three Months Ended
March 2024 vs. March 2023
|
|
|
|
Description
|
Cents
|
|
|
|
Retail Sales
|
4¢
|
|
|
|
Retail Revenue
Impacts
|
16
|
|
|
|
Weather
|
6
|
|
|
|
Wholesale and Other
Operating Revenues
|
3
|
|
|
|
Depreciation and
Amortization
|
(2)
|
|
|
|
Interest Expense and
Other
|
(5)
|
|
|
|
Income Taxes
|
(3)
|
|
|
|
Total Traditional
Electric Operating Companies
|
19¢
|
|
|
|
Southern
Power
|
(1)
|
|
|
|
Southern Company
Gas
|
9
|
|
|
|
Parent Company and
Other
|
(3)
|
|
|
|
Total Change in EPS
(Excluding Items)
|
24¢
|
|
|
|
Estimated Loss on
Plants Under Construction(1)
|
—
|
|
|
|
Loss on Extinguishment
of Debt(2)
|
—
|
|
|
|
Total Change in EPS
(As Reported)
|
24¢
|
|
|
|
See Notes on the
following page.
|
|
Southern
Company
EPS Earnings Analysis
|
|
|
|
Notes
|
|
|
(1)
|
Earnings for the three
months ended March 31, 2024 and 2023 include charges (net of
salvage proceeds), associated legal expenses (net of insurance
recoveries), and tax impacts related to Mississippi Power Company's
integrated coal gasification combined cycle facility project in
Kemper County, Mississippi. Mississippi Power Company expects to
incur additional pre-tax period costs to complete dismantlement of
the abandoned gasifier-related assets and site restoration
activities, including related costs for compliance and safety,
asset retirement obligation accretion, and property taxes, net of
salvage, totaling approximately $15 million annually through 2025.
Additionally, further charges and/or credits related to estimated
probable loss on Georgia Power Company's construction of Plant
Vogtle Units 3 and 4 may occur; however, the amount and timing are
uncertain.
|
|
|
|
(2)
|
Earnings for the three
months ended March 31, 2023 include costs associated with the
extinguishment of debt at Southern Company. Similar transaction
costs may occur in the future at Southern Company or one of its
unregulated subsidiaries; however, the amount and timing of any
such costs are uncertain.
|
|
Southern
Company
|
|
Consolidated
Earnings
|
|
As
Reported
|
|
|
|
|
|
|
|
Three Months Ended
March
|
|
2024
|
|
2023
|
|
Change
|
|
(in
millions)
|
|
|
|
Retail electric
revenues:
|
|
|
|
|
|
|
Fuel
|
$ 1,011
|
|
$ 1,050
|
|
$
(39)
|
|
Non-fuel
|
2,930
|
|
2,549
|
|
381
|
|
Wholesale electric
revenues
|
571
|
|
599
|
|
(28)
|
|
Other electric
revenues
|
199
|
|
190
|
|
9
|
|
Natural gas
revenues
|
1,707
|
|
1,875
|
|
(168)
|
|
Other
revenues
|
228
|
|
217
|
|
11
|
|
Total operating
revenues
|
6,646
|
|
6,480
|
|
166
|
|
Fuel and purchased
power
|
1,194
|
|
1,292
|
|
(98)
|
|
Cost of natural
gas
|
605
|
|
898
|
|
(293)
|
|
Cost of other
sales
|
131
|
|
127
|
|
4
|
|
Non-fuel operations and
maintenance
|
1,472
|
|
1,440
|
|
32
|
|
Depreciation and
amortization
|
1,145
|
|
1,111
|
|
34
|
|
Taxes other than income
taxes
|
396
|
|
394
|
|
2
|
|
Total operating
expenses
|
4,943
|
|
5,262
|
|
(319)
|
|
Operating
income
|
1,703
|
|
1,218
|
|
485
|
|
Allowance for equity
funds used during construction
|
58
|
|
65
|
|
(7)
|
|
Earnings from equity
method investments
|
45
|
|
48
|
|
(3)
|
|
Interest expense, net
of amounts capitalized
|
665
|
|
582
|
|
83
|
|
Other income (expense),
net
|
153
|
|
147
|
|
6
|
|
Income taxes
|
223
|
|
97
|
|
126
|
|
Net
income
|
1,071
|
|
799
|
|
272
|
|
Net loss attributable
to noncontrolling interests
|
(58)
|
|
(63)
|
|
5
|
|
Net income
attributable to Southern Company
|
$ 1,129
|
|
$
862
|
|
$
267
|
|
|
|
Certain prior year data
may have been reclassified to conform with current year
presentation.
|
|
Southern
Company
|
|
Kilowatt-Hour Sales
and Customers
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March
|
|
2024
|
|
2023
|
|
% Change
|
|
Weather
Adjusted
% Change
|
|
(in
millions)
|
|
|
|
|
|
Kilowatt-Hour
Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Sales
|
46,529
|
|
46,725
|
|
(0.4) %
|
|
|
|
|
|
|
|
|
|
|
|
Total Retail
Sales
|
35,254
|
|
33,382
|
|
5.6 %
|
|
1.7 %
|
|
Residential
|
11,876
|
|
10,630
|
|
11.7 %
|
|
1.0 %
|
|
Commercial
|
11,474
|
|
10,883
|
|
5.4 %
|
|
3.8 %
|
|
Industrial
|
11,768
|
|
11,724
|
|
0.4 %
|
|
0.4 %
|
|
Other
|
136
|
|
145
|
|
(6.5) %
|
|
(7.2) %
|
|
|
|
|
|
|
|
|
|
Total Wholesale
Sales
|
11,275
|
|
13,343
|
|
(15.5) %
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period Ended
March
|
|
|
|
2024
|
|
2023
|
|
% Change
|
|
|
|
(in
thousands)
|
|
|
|
|
|
Regulated Utility
Customers
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Regulated Utility
Customers
|
8,900
|
|
8,824
|
|
0.9 %
|
|
|
|
Traditional Electric
Operating Companies
|
4,502
|
|
4,449
|
|
1.2 %
|
|
|
|
Southern Company
Gas
|
4,398
|
|
4,375
|
|
0.5 %
|
|
|
|
Southern
Company
|
|
Financial
Overview
|
|
As
Reported
|
|
|
|
|
|
|
|
Three Months Ended
March
|
|
2024
|
|
2023
|
|
% Change
|
|
(in
millions)
|
|
|
|
Southern Company
–
|
|
|
|
|
|
|
Operating
Revenues
|
$
6,646
|
|
$ 6,480
|
|
2.6 %
|
|
Earnings Before Income
Taxes
|
1,294
|
|
896
|
|
44.4 %
|
|
Net Income Available to
Common
|
1,129
|
|
862
|
|
31.0 %
|
|
|
|
|
|
|
|
Alabama Power
–
|
|
|
|
|
|
|
Operating
Revenues
|
$
1,791
|
|
$ 1,647
|
|
8.7 %
|
|
Earnings Before Income
Taxes
|
418
|
|
253
|
|
65.2 %
|
|
Net Income Available to
Common
|
333
|
|
255
|
|
30.6 %
|
|
|
|
|
|
|
|
Georgia Power
–
|
|
|
|
|
|
|
Operating
Revenues
|
$
2,398
|
|
$ 2,176
|
|
10.2 %
|
|
Earnings Before Income
Taxes
|
516
|
|
349
|
|
47.9 %
|
|
Net Income Available to
Common
|
437
|
|
296
|
|
47.6 %
|
|
|
|
|
|
|
|
Mississippi Power
–
|
|
|
|
|
|
|
Operating
Revenues
|
$
342
|
|
$
390
|
|
(12.3) %
|
|
Earnings Before Income
Taxes
|
60
|
|
71
|
|
(15.5) %
|
|
Net Income Available to
Common
|
50
|
|
58
|
|
(13.8) %
|
|
|
|
|
|
|
|
Southern Power
–
|
|
|
|
|
|
|
Operating
Revenues
|
$
473
|
|
$
508
|
|
(6.9) %
|
|
Earnings Before Income
Taxes
|
24
|
|
32
|
|
(25.0) %
|
|
Net Income Available to
Common
|
96
|
|
102
|
|
(5.9) %
|
|
|
|
|
|
|
|
Southern Company Gas
–
|
|
|
|
|
|
|
Operating
Revenues
|
$
1,707
|
|
$ 1,875
|
|
(9.0) %
|
|
Earnings Before Income
Taxes
|
547
|
|
412
|
|
32.8 %
|
|
Net Income Available to
Common
|
409
|
|
309
|
|
32.4 %
|
|
|
|
See Financial
Highlights pages for discussion of certain significant items
occurring during the periods.
|
View original content to download
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SOURCE Southern Company