Southern Company reports first-quarter 2024 earnings
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.
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SOURCE Southern Company
