ATLANTA, Nov. 1, 2017 /PRNewswire/ -- Southern
Company today reported third quarter 2017 earnings of $1.07 billion, or $1.07 per share, compared with earnings of
$1.14 billion, or $1.18 per share, in the third quarter of
2016. For the nine months ended September 30, 2017, Southern Company reported
earnings of $347 million, or
35 cents per share, compared with
earnings of $2.25 billion, or
$2.40 per share, for the same period
in 2016.
Excluding the items described in the "Net Income – Excluding
Items" table below, Southern Company earned $1.13 billion, or $1.12 per share, during the third quarter of
2017, compared with $1.23 billion, or
$1.27 per share, during the third
quarter of 2016. For the nine months ended September 30, 2017, excluding these items,
Southern Company earned $2.51
billion, or $2.51 per share,
compared with earnings of $2.46
billion, or $2.62 per share,
for the same period in 2016.
Non-GAAP Financial
Measures
|
Three Months Ended
September
|
|
Year-to-Date
September
|
Net Income -
Excluding Items (in millions)
|
2017
|
2016
|
|
2017
|
2016
|
Net Income - As
Reported
|
$1,069
|
$1,139
|
|
$347
|
$2,251
|
Estimated Loss on
Kemper IGCC
|
34
|
88
|
|
3,155
|
222
|
Tax
Impact
|
(13)
|
(34)
|
|
(951)
|
(85)
|
Loss on Plant Scherer
Unit 3
|
-
|
-
|
|
33
|
-
|
Tax
Impact
|
-
|
-
|
|
(13)
|
-
|
Acquisition and
Integration Costs
|
6
|
43
|
|
19
|
107
|
Tax
Impact
|
7
|
(14)
|
|
2
|
(34)
|
Wholesale Gas
Services
|
38
|
18
|
|
(48)
|
18
|
Tax Impact
|
(15)
|
(7)
|
|
20
|
(7)
|
Earnings Guidance
Comparability Item:
|
|
|
|
|
|
Equity Return Related
to Kemper IGCC
Schedule Extension
|
-
|
(7)
|
|
(47)
|
(7)
|
Tax
Impact
|
-
|
(1)
|
|
(9)
|
(1)
|
Net Income –
Excluding Items
|
$1,126
|
$1,225
|
|
$2,508
|
$2,464
|
Average Shares
Outstanding – (in millions)
|
1,003
|
968
|
|
998
|
940
|
Basic Earnings Per
Share – Excluding Items
|
$1.12
|
$1.27
|
|
$2.51
|
$2.62
|
NOTE: For more information regarding these non-GAAP adjustments,
see the footnotes accompanying the Financial Highlights page of the
earnings package.
Earnings drivers year-over-year for the third quarter 2017 were
positively influenced by retail revenue effects at Southern
Company's traditional electric operating companies and were
negatively influenced by mild weather, timing for Southern Power
tax credits, increased interest expense and share issuances.
"Our premier, state-regulated electric and gas franchise
operations and our competitive generation subsidiary, Southern
Power, continued to perform at a high level in the third quarter of
2017, delivering on our commitment to provide clean, safe, reliable
and affordable energy to customers," said Chairman, President and
CEO Thomas A. Fanning. "This
longstanding customer focus, as further manifested by the
resiliency demonstrated in our hurricane restoration efforts during
the past quarter, is the cornerstone for delivering on our
long-term financial objectives as we continue to build America's
energy future."
Third quarter 2017 operating revenues were $6.20 billion, compared with $6.26 billion for the third quarter of 2016, a
decrease of 1.0 percent. This decrease in quarter-over-quarter
revenues is primarily due to the effects of milder weather and
electricity outages experienced during Hurricane Irma. For the nine
months ended September 30, 2017,
operating revenues were $17.4
billion, compared with $14.7
billion during the same period of 2016, an increase of 18.3
percent. Southern Company Gas accounted for $2.3 billion of the increase in operating
revenues for the nine months ended September
30, 2017.
Southern Company's third quarter earnings slides with
supplemental financial information are available at
http://investor.southerncompany.com.
Southern Company's financial analyst call will begin at
1 p.m. Eastern Time today, during
which Fanning and Chief Financial Officer Art P. Beattie 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
http://investor.southerncompany.com/webcasts. A replay of the
webcast will be available on the site for 12 months.
About Southern Company
Southern Company (NYSE: SO) is America's premier energy company,
with 46,000 megawatts of generating capacity and 1,500 billion
cubic feet of combined natural gas consumption and throughput
volume serving 9 million customers through its subsidiaries. The
company provides clean, safe, reliable and affordable energy
through electric operating companies in four states, natural gas
distribution companies in seven states, a competitive generation
company serving wholesale customers across America and a nationally
recognized provider of customized energy solutions, as well as
fiber optics and wireless communications. Southern Company brands
are known for excellent customer service, high reliability and
affordable prices that are below the national average. Through an
industry-leading commitment to innovation, Southern Company and its
subsidiaries are inventing America's energy future by developing
the full portfolio of energy resources, including carbon-free
nuclear, 21st century coal, natural gas, renewables and
energy efficiency, and creating new products and services for the
benefit of customers. Southern Company has been named by the
U.S. Department of Defense and G.I.
Jobs magazine as a top military employer, recognized among
the Top 50 Companies for Diversity by DiversityInc, listed by Black
Enterprise magazine as one of the 40 Best Companies for Diversity
and designated a Top Employer for Hispanics by Hispanic Network.
The company has earned a National Award of Nuclear Science and
History from the National Atomic Museum Foundation for its
leadership and commitment to nuclear development and is continually
ranked among the top energy companies in Fortune's annual
World's Most Admired Electric and Gas Utility
rankings. Visit our website at www.southerncompany.com.
Southern
Company
|
Financial
Highlights
|
(In Millions of
Dollars Except Earnings Per Share)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September
|
|
Year-to-Date
September
|
Net Income–As
Reported (See Notes)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
Traditional
Electric Operating Companies
|
|
$
|
1,008
|
|
|
$
|
1,022
|
|
|
$
|
—
|
|
|
$
|
2,086
|
|
Southern
Power
|
|
124
|
|
|
176
|
|
|
276
|
|
|
315
|
|
Southern Company
Gas1
|
|
15
|
|
|
4
|
|
|
303
|
|
|
4
|
|
Total
|
|
1,147
|
|
|
1,202
|
|
|
579
|
|
|
2,405
|
|
Parent Company
and Other
|
|
(78)
|
|
|
(63)
|
|
|
(232)
|
|
|
(154)
|
|
Net
Income–As Reported
|
|
$
|
1,069
|
|
|
$
|
1,139
|
|
|
$
|
347
|
|
|
$
|
2,251
|
|
|
|
|
|
|
|
|
|
|
Basic Earnings
Per Share2
|
|
$
|
1.07
|
|
|
$
|
1.18
|
|
|
$
|
0.35
|
|
|
$
|
2.40
|
|
|
|
|
|
|
|
|
|
|
Average Shares
Outstanding (in millions)
|
|
1,003
|
|
|
968
|
|
|
998
|
|
|
940
|
|
End of Period
Shares Outstanding (in millions)
|
|
|
|
|
|
1,004
|
|
|
980
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Financial
Measures
|
|
Three Months
Ended
September
|
|
Year-to-Date
September
|
Net
Income–Excluding Items (See Notes)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
Net Income–As
Reported
|
|
$
|
1,069
|
|
|
$
|
1,139
|
|
|
$
|
347
|
|
|
$
|
2,251
|
|
Estimated Loss
on Kemper IGCC3
|
|
34
|
|
|
88
|
|
|
3,155
|
|
|
222
|
|
Tax Impact
|
|
(13)
|
|
|
(34)
|
|
|
(951)
|
|
|
(85)
|
|
Loss on Plant Scherer
Unit 34
|
|
—
|
|
|
—
|
|
|
33
|
|
|
—
|
|
Tax Impact
|
|
—
|
|
|
—
|
|
|
(13)
|
|
|
—
|
|
Acquisition and
Integration Costs5
|
|
6
|
|
|
43
|
|
|
19
|
|
|
107
|
|
Tax Impact
|
|
7
|
|
|
(14)
|
|
|
2
|
|
|
(34)
|
|
Wholesale Gas
Services6
|
|
38
|
|
|
18
|
|
|
(48)
|
|
|
18
|
|
Tax Impact
|
|
(15)
|
|
|
(7)
|
|
|
20
|
|
|
(7)
|
|
Earnings Guidance
Comparability Item:
|
|
|
|
|
|
|
|
|
Equity Return Related
to Kemper IGCC
Schedule
Extension7
|
|
—
|
|
|
(7)
|
|
|
(47)
|
|
|
(7)
|
|
Tax
Impact
|
|
—
|
|
|
(1)
|
|
|
(9)
|
|
|
(1)
|
|
Net
Income–Excluding Items
|
|
$
|
1,126
|
|
|
$
|
1,225
|
|
|
$
|
2,508
|
|
|
$
|
2,464
|
|
|
|
|
|
|
|
|
|
|
Basic Earnings
Per Share–Excluding Items
|
|
$
|
1.12
|
|
|
$
|
1.27
|
|
|
$
|
2.51
|
|
|
$
|
2.62
|
|
|
|
|
|
|
|
|
|
|
-See Notes on the
following page.
|
Southern
Company
|
Financial
Highlights
|
|
|
|
|
|
|
|
|
|
Notes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- In connection with
the adoption in the fourth quarter 2016 of a new accounting
standard for stock compensation, previously reported amounts for
income tax expense were reduced by a total of $9 million and $25
million for the three and nine months ended September 30, 2016,
respectively.
|
|
- For comparative
purposes, Net Income - Excluding Items and Basic Earnings Per Share
- Excluding Items in prior year periods do not reflect any
adjustments to exclude (1) Southern Company Gas earnings, net of
acquisition and integration costs and Wholesale Gas Services ($0.04
per share for the three and nine months ended September 30, 2016),
(2) acquisition debt financing costs related to the acquisition of
Southern Company Gas ($0.05 and $0.07 per share for the three and
nine months ended September 30, 2016, respectively), and (3) the
impact of additional shares of common stock issued to finance a
portion of the purchase price for the 50% interest in Southern
Natural Gas Company, L.L.C. (SNG) ($0.02 and $0.01 per share for
the three and nine months ended September 30, 2016, respectively).
These items were not contemplated in Southern Company's February
2016 guidance and, therefore, were previously excluded in the
periods through December 31, 2016.
|
|
(1) On July 1, 2016,
Southern Company completed the acquisition of Southern Company
Gas.
|
|
(2) For the three and
nine months ended September 30, 2017 and 2016, dilution does not
change basic earnings per share by more than 2 cents and is not
material.
|
|
(3) Earnings for the
three and nine months ended September 30, 2017 and 2016 include the
estimated losses relating to Mississippi Power Company's integrated
coal gasification combined cycle facility construction project in
Kemper County, Mississippi (Kemper IGCC) which significantly
impacted the presentation of earnings and earnings per share.
Further charges of uncertain amounts may occur in future periods in
connection with the resolution of the Mississippi Public Service
Commission's Kemper Settlement Docket.
|
|
|
|
|
|
|
|
|
|
(4) Earnings for the
nine months ended September 30, 2017 include a $32.5 million
write-down ($20 million after tax) of Gulf Power Company's
ownership of Plant Scherer Unit 3 as a result of the retail rate
case settlement approved by the Florida Public Service Commission
on April 4, 2017. Further charges are not expected to
occur.
|
|
|
|
|
|
|
|
|
|
(5) Earnings for the
three and nine months ended September 30, 2017 and 2016 include
costs related to the acquisition and integration of Southern
Company Gas. Further costs are expected to continue to occur in
connection with the related integration activities; however, the
amount and duration of such expenditures is uncertain.
|
|
|
|
|
|
|
|
|
|
(6) Earnings for the
three and nine months ended September 30, 2017 and 2016 include the
Wholesale Gas Services business of Southern Company Gas. Presenting
earnings and earnings per share excluding Wholesale Gas Services
provides investors with an additional measure of operating
performance that excludes the volatility resulting from
mark-to-market and lower of weighted average cost or current market
price accounting adjustments.
|
|
|
|
|
|
|
|
|
|
(7) Earnings for the
nine months ended September 30, 2017 and the three and nine months
ended September 30, 2016 include additional allowance for funds
used during construction (AFUDC) equity as a result of extending
the schedule for the Kemper IGCC construction project. AFUDC equity
ceased in connection with the project's suspension in June 2017.
Southern Company's 2017 earnings guidance, initially presented in
October 2016, assumed construction would be complete and AFUDC
equity would cease by November 30, 2016. Southern Company's 2016
earnings guidance, initially presented in February 2016, assumed
construction would be complete and AFUDC equity would cease by
August 31, 2016. As a result, Southern Company believes
presentation of earnings per share excluding AFUDC equity
subsequent to August 31, 2016 provides investors with information
comparable to guidance. Management also uses such measures to
evaluate Southern Company's performance.
|
|
|
|
|
|
|
|
|
|
Southern
Company
|
Significant
Factors Impacting EPS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September
|
|
Year-to-Date
September
|
|
|
2017
|
|
2016
|
|
Change
|
|
2017
|
|
2016
|
|
Change
|
Earnings Per
Share–
|
|
|
|
|
|
|
|
|
|
|
|
|
As
Reported1 (See Notes)
|
|
$
|
1.07
|
|
|
$
|
1.18
|
|
|
$
|
(0.11)
|
|
|
$
|
0.35
|
|
|
$
|
2.40
|
|
|
$
|
(2.05)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Significant
Factors:
|
|
|
|
|
|
|
|
|
|
|
|
|
Traditional Electric Operating
Companies
|
|
|
|
|
|
$
|
(0.01)
|
|
|
|
|
|
|
$
|
(2.22)
|
|
Southern
Power
|
|
|
|
|
|
(0.05)
|
|
|
|
|
|
|
(0.04)
|
|
Southern
Company Gas2
|
|
|
|
|
|
0.01
|
|
|
|
|
|
|
0.32
|
|
Parent Company
and Other
|
|
|
|
|
|
(0.02)
|
|
|
|
|
|
|
(0.09)
|
|
Increase in
Shares
|
|
|
|
|
|
(0.04)
|
|
|
|
|
|
|
(0.02)
|
|
Total–As
Reported
|
|
|
|
|
|
$
|
(0.11)
|
|
|
|
|
|
|
$
|
(2.05)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September
|
|
Year-to-Date
September
|
Non-GAAP Financial
Measures
|
|
2017
|
|
2016
|
|
Change
|
|
2017
|
|
2016
|
|
Change
|
Earnings Per
Share–
|
|
|
|
|
|
|
|
|
|
|
|
|
Excluding Items
(See Notes)
|
|
$
|
1.12
|
|
|
$
|
1.27
|
|
|
$
|
(0.15)
|
|
|
$
|
2.51
|
|
|
$
|
2.62
|
|
|
$
|
(0.11)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total–As
Reported
|
|
|
|
|
|
$
|
(0.11)
|
|
|
|
|
|
|
$
|
(2.05)
|
|
Kemper IGCC
Impacts3
|
|
|
|
|
|
(0.03)
|
|
|
|
|
|
|
2.02
|
|
Loss on Plant
Scherer Unit 34
|
|
|
|
|
|
—
|
|
|
|
|
|
|
0.02
|
|
Acquisition and
Integration Costs5
|
|
|
|
|
|
(0.02)
|
|
|
|
|
|
|
(0.06)
|
|
Wholesale Gas
Services6
|
|
|
|
|
|
0.01
|
|
|
|
|
|
|
(0.04)
|
|
Total–Excluding Items
|
|
|
|
|
|
$
|
(0.15)
|
|
|
|
|
|
|
$
|
(0.11)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- See Notes on the
following page.
|
Southern
Company
|
Significant
Factors Impacting EPS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- In connection with
the adoption in the fourth quarter 2016 of a new accounting
standard for stock compensation, previously reported amounts for
income tax expense were reduced by a total of $9 million and $25
million for the three and nine months ended September 30, 2016,
respectively.
|
|
- For comparative
purposes, Net Income - Excluding Items and Basic Earnings Per Share
- Excluding Items in prior year periods do not reflect any
adjustments to exclude (1) Southern Company Gas earnings, net of
acquisition and integration costs and Wholesale Gas Services ($0.04
per share for the three and nine months ended September 30, 2016),
(2) acquisition debt financing costs related to the acquisition of
Southern Company Gas ($0.05 and $0.07 per share for the three and
nine months ended September 30, 2016, respectively), and (3) the
impact of additional shares of common stock issued to finance a
portion of the purchase price for the 50% interest in Southern
Natural Gas Company, L.L.C. (SNG) ($0.02 and $0.01 per share for
the three and nine months ended September 30, 2016, respectively).
These items were not contemplated in Southern Company's February
2016 guidance and, therefore, were previously excluded in the
periods through December 31, 2016.
|
|
(1) For the three and
nine months ended September 30, 2017 and 2016, dilution does not
change basic earnings per share by more than 2 cents and is not
material.
|
|
(2) On July 1, 2016,
Southern Company completed the acquisition of Southern Company
Gas.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3) Earnings for the
three and nine months ended September 30, 2017 and 2016 include the
estimated losses relating to Mississippi Power Company's integrated
coal gasification combined cycle facility construction project in
Kemper County, Mississippi (Kemper IGCC) which significantly
impacted the presentation of earnings and earnings per share.
Further charges of uncertain amounts may occur in future periods in
connection with the resolution of the Mississippi Public Service
Commission's Kemper Settlement Docket.
Earnings for the nine months ended September 30, 2017 and the three
and nine months ended September 30, 2016 include additional
allowance for funds used during construction (AFUDC) equity as a
result of extending the schedule for the Kemper IGCC construction
project. AFUDC equity ceased in connection with the project's
suspension in June 2017. Southern Company's 2017 earnings guidance,
initially presented in October 2016, assumed construction would be
complete and AFUDC equity would cease by November 30, 2016.
Southern Company's 2016 earnings guidance, initially presented in
February 2016, assumed construction would be complete and AFUDC
equity would cease by August 31, 2016. As a result, Southern
Company believes presentation of earnings per share excluding AFUDC
equity subsequent to August 31, 2016 provides investors with
information comparable to guidance. Management also uses such
measures to evaluate Southern Company's performance.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4) Earnings for the
nine months ended September 30, 2017 include a $32.5 million
write-down ($20 million after tax) of Gulf Power Company's
ownership of Plant Scherer Unit 3 as a result of the retail rate
case settlement approved by the Florida Public Service Commission
on April 4, 2017. Further charges are not expected to
occur.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5) Earnings for the
three and nine months ended September 30, 2017 and 2016 include
costs related to the acquisition and integration of Southern
Company Gas. Further costs are expected to continue to occur in
connection with the related integration activities; however, the
amount and duration of such expenditures is uncertain.
|
|
(6) Earnings for the
three and nine months ended September 30, 2017 and 2016 include the
Wholesale Gas Services business of Southern Company Gas. Presenting
earnings and earnings per share excluding Wholesale Gas Services
provides investors with an additional measure of operating
performance that excludes the volatility resulting from
mark-to-market and lower of weighted average cost or current market
price accounting adjustments.
|
Southern
Company
|
EPS Earnings
Analysis
|
Three Months Ended
September 2017 vs. September 2016
|
|
|
Cents
|
Description
|
|
|
(4)¢
|
Retail
Sales
|
|
|
9¢
|
Retail Revenue
Impacts
|
|
|
(10)¢
|
Weather
|
|
|
(1)¢
|
Wholesale
Operations
|
|
|
4¢
|
Non-Fuel
O&M
|
|
|
(1)¢
|
Depreciation and
Amortization
|
|
|
1¢
|
Taxes Other Than
Income Taxes
|
|
|
(2)¢
|
Other Income and
Deductions
|
|
|
1¢
|
Interest
Expense
|
|
|
(1)¢
|
Income
Taxes
|
|
|
(4)¢
|
Total Traditional
Electric Operating Companies
|
|
|
(5)¢
|
Southern
Power
|
|
|
1¢
|
Southern Company
Gas1
|
|
|
(3)¢
|
Parent and
Other
|
|
|
(4)¢
|
Increase in
Shares
|
|
|
(15)¢
|
Total Change in
QTD EPS (Excluding Items)
|
|
|
3¢
|
Kemper IGCC
Impacts2
|
|
|
2¢
|
Acquisition and
Integration Costs3
|
|
|
(1)¢
|
Wholesale Gas
Services4
|
|
|
(11)¢
|
Total Change in
QTD EPS (As Reported)
|
|
|
- See Notes on the
following page.
|
Southern
Company
|
EPS Earnings
Analysis
|
Three Months Ended
September 2017 vs. September 2016
|
Notes
|
|
- In connection with
the adoption in the fourth quarter 2016 of a new accounting
standard for stock compensation, previously reported amounts for
income tax expense were reduced by a total of $9 million for the
three months ended September 30, 2016.
|
|
- For comparative
purposes, Net Income - Excluding Items and Basic Earnings Per Share
- Excluding Items in prior year periods do not reflect any
adjustments to exclude (1) Southern Company Gas earnings, net of
acquisition and integration costs and Wholesale Gas Services ($0.04
per share for the three months ended September 30, 2016), (2)
acquisition debt financing costs related to the acquisition of
Southern Company Gas ($0.05 per share for the three months ended
September 30, 2016), and (3) the impact of additional shares of
common stock issued to finance a portion of the purchase price for
the 50% interest in Southern Natural Gas Company, L.L.C. (SNG)
($0.02 per share for the three months ended September 30, 2016).
These items were not contemplated in Southern Company's February
2016 guidance and, therefore, were previously excluded in the
periods through December 31, 2016.
|
|
(1) On July 1, 2016,
Southern Company completed the acquisition of Southern Company
Gas.
|
|
(2) Earnings for the
three months ended September 30, 2017 and 2016 include the
estimated losses relating to Mississippi Power Company's integrated
coal gasification combined cycle facility construction project in
Kemper County, Mississippi (Kemper IGCC) which significantly
impacted the presentation of earnings and earnings per share.
Further charges of uncertain amounts may occur in future periods in
connection with the resolution of the Mississippi Public Service
Commission's Kemper Settlement Docket.
Earnings for the three months ended September 30, 2016 include
additional allowance for funds used during construction (AFUDC)
equity as a result of extending the schedule for the Kemper IGCC
construction project. AFUDC equity ceased in connection with the
project's suspension in June 2017. Southern Company's 2017 earnings
guidance, initially presented in October 2016, assumed construction
would be complete and AFUDC equity would cease by November 30,
2016. Southern Company's 2016 earnings guidance, initially
presented in February 2016, assumed construction would be complete
and AFUDC equity would cease by August 31, 2016. As a result,
Southern Company believes presentation of earnings per share
excluding AFUDC equity subsequent to August 31, 2016 provides
investors with information comparable to guidance. Management also
uses such measures to evaluate Southern Company's
performance.
|
|
(3) Earnings for the
three months ended September 30, 2017 and 2016 include costs
related to the acquisition and integration of Southern Company Gas.
Further costs are expected to continue to occur in connection with
the related integration activities; however, the amount and
duration of such expenditures is uncertain.
|
|
|
(4) Earnings for the
three months ended September 30, 2017 and 2016 include the
Wholesale Gas Services business of Southern Company Gas. Presenting
earnings and earnings per share excluding Wholesale Gas Services
provides investors with an additional measure of operating
performance that excludes the volatility resulting from
mark-to-market and lower of weighted average cost or current market
price accounting adjustments.
|
|
|
Southern
Company
|
Consolidated
Earnings
|
As
Reported
|
(In Millions of
Dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September
|
|
Year-to-Date
September
|
|
|
2017
|
|
2016
|
|
Change
|
|
2017
|
|
2016
|
|
Change
|
Income
Account-
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Electric
Revenues-
|
|
|
|
|
|
|
|
|
|
|
|
|
Fuel
|
|
$
|
1,185
|
|
|
$
|
1,296
|
|
|
$
|
(111)
|
|
|
$
|
3,130
|
|
|
$
|
3,169
|
|
|
$
|
(39)
|
|
Non-Fuel
|
|
3,430
|
|
|
3,512
|
|
|
(82)
|
|
|
8,656
|
|
|
8,763
|
|
|
(107)
|
|
Wholesale Electric
Revenues
|
|
718
|
|
|
613
|
|
|
105
|
|
|
1,867
|
|
|
1,455
|
|
|
412
|
|
Other Electric
Revenues
|
|
168
|
|
|
181
|
|
|
(13)
|
|
|
510
|
|
|
529
|
|
|
(19)
|
|
Natural Gas
Revenues
|
|
532
|
|
|
518
|
|
|
14
|
|
|
2,746
|
|
|
518
|
|
|
2,228
|
|
Other
Revenues
|
|
168
|
|
|
144
|
|
|
24
|
|
|
494
|
|
|
281
|
|
|
213
|
|
Total
Revenues
|
|
6,201
|
|
|
6,264
|
|
|
(63)
|
|
|
17,403
|
|
|
14,715
|
|
|
2,688
|
|
Fuel and Purchased
Power
|
|
1,541
|
|
|
1,627
|
|
|
(86)
|
|
|
4,018
|
|
|
3,915
|
|
|
103
|
|
Cost of Natural
Gas
|
|
134
|
|
|
133
|
|
|
1
|
|
|
1,085
|
|
|
133
|
|
|
952
|
|
Cost of Other
Sales
|
|
90
|
|
|
84
|
|
|
6
|
|
|
293
|
|
|
161
|
|
|
132
|
|
Non-Fuel O &
M
|
|
1,287
|
|
|
1,411
|
|
|
(124)
|
|
|
3,918
|
|
|
3,616
|
|
|
302
|
|
Depreciation and
Amortization
|
|
767
|
|
|
695
|
|
|
72
|
|
|
2,236
|
|
|
1,805
|
|
|
431
|
|
Taxes Other Than
Income Taxes
|
|
303
|
|
|
309
|
|
|
(6)
|
|
|
941
|
|
|
821
|
|
|
120
|
|
Estimated Loss on
Kemper IGCC
|
|
34
|
|
|
88
|
|
|
(54)
|
|
|
3,155
|
|
|
222
|
|
|
2,933
|
|
Total Operating
Expenses
|
|
4,156
|
|
|
4,347
|
|
|
(191)
|
|
|
15,646
|
|
|
10,673
|
|
|
4,973
|
|
Operating
Income
|
|
2,045
|
|
|
1,917
|
|
|
128
|
|
|
1,757
|
|
|
4,042
|
|
|
(2,285)
|
|
Allowance for Equity
Funds Used During Construction
|
|
18
|
|
|
52
|
|
|
(34)
|
|
|
133
|
|
|
150
|
|
|
(17)
|
|
Earnings from Equity
Method Investments
|
|
32
|
|
|
29
|
|
|
3
|
|
|
100
|
|
|
28
|
|
|
72
|
|
Interest Expense, Net
of Amounts Capitalized
|
|
407
|
|
|
374
|
|
|
33
|
|
|
1,248
|
|
|
913
|
|
|
335
|
|
Other Income
(Expense), net
|
|
11
|
|
|
(8)
|
|
|
19
|
|
|
2
|
|
|
(66)
|
|
|
68
|
|
Income
Taxes
|
|
590
|
|
|
439
|
|
|
151
|
|
|
317
|
|
|
917
|
|
|
(600)
|
|
Net
Income
|
|
1,109
|
|
|
1,177
|
|
|
(68)
|
|
|
427
|
|
|
2,324
|
|
|
(1,897)
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends on
Preferred and Preference
Stock of Subsidiaries
|
|
10
|
|
|
11
|
|
|
(1)
|
|
|
32
|
|
|
34
|
|
|
(2)
|
|
Net Income
Attributable to Noncontrolling
Interests
|
|
30
|
|
|
27
|
|
|
3
|
|
|
48
|
|
|
39
|
|
|
9
|
|
NET INCOME
ATTRIBUTABLE TO SOUTHERN COMPANY
|
|
$
|
1,069
|
|
|
$
|
1,139
|
|
|
$
|
(70)
|
|
|
$
|
347
|
|
|
$
|
2,251
|
|
|
$
|
(1,904)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Certain prior year
data may have been reclassified to conform with current year
presentation.
|
|
- In connection with
the adoption in the fourth quarter 2016 of a new accounting
standard for stock compensation, previously reported amounts for
income tax expense were reduced by a total of $9 million and $25
million for the three and nine months ended September 30, 2016,
respectively.
|
|
|
Southern
Company
|
|
Kilowatt-Hour
Sales and Customers
|
|
(In Millions of
KWHs)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September
|
|
Year-to-Date
September
|
|
As
Reported
|
|
2017
|
|
2016
|
|
Change
|
|
Weather
Adjusted
Change
|
|
2017
|
|
2016
|
|
Change
|
|
Weather
Adjusted
Change
|
|
Kilowatt-Hour
Sales-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Sales
|
|
58,276
|
|
|
58,648
|
|
|
(0.6)
|
%
|
|
|
|
155,626
|
|
|
152,625
|
|
|
2.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Retail
Sales-
|
|
44,449
|
|
|
47,071
|
|
|
(5.6)
|
%
|
|
(1.3)
|
%
|
|
118,802
|
|
|
124,535
|
|
|
(4.6)
|
%
|
|
(1.0)
|
%
|
|
Residential
|
|
15,499
|
|
|
17,213
|
|
|
(10.0)
|
%
|
|
(2.0)
|
%
|
|
38,502
|
|
|
42,257
|
|
|
(8.9)
|
%
|
|
(0.6)
|
%
|
|
Commercial
|
|
14,969
|
|
|
15,805
|
|
|
(5.3)
|
%
|
|
(1.4)
|
%
|
|
40,007
|
|
|
41,509
|
|
|
(3.6)
|
%
|
|
(1.1)
|
%
|
|
Industrial
|
|
13,770
|
|
|
13,833
|
|
|
(0.5)
|
%
|
|
(0.5)
|
%
|
|
39,656
|
|
|
40,102
|
|
|
(1.1)
|
%
|
|
(1.1)
|
%
|
|
Other
|
|
211
|
|
|
220
|
|
|
(4.1)
|
%
|
|
(3.8)
|
%
|
|
637
|
|
|
667
|
|
|
(4.4)
|
%
|
|
(4.2)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Wholesale
Sales
|
|
13,827
|
|
|
11,577
|
|
|
19.4
|
%
|
|
N/A
|
|
36,824
|
|
|
28,090
|
|
|
31.1
|
%
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In Thousands
of Customers)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period Ended
September
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2017
|
|
2016
|
|
Change
|
|
|
|
Regulated Utility
Customers-
|
|
|
|
|
|
|
|
|
|
Total Utility
Customers-
|
|
|
|
|
|
9,187
|
|
|
9,106
|
|
|
0.9
|
%
|
|
|
|
Total Traditional
Electric
|
|
|
|
|
|
4,632
|
|
|
4,584
|
|
|
1.0
|
%
|
|
|
|
Southern Company
Gas
|
|
|
|
|
|
4,555
|
|
|
4,522
|
|
|
0.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Southern
Company
|
Financial
Overview
|
As
Reported
|
(In Millions of
Dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September
|
|
Year-to-Date
September
|
|
|
2017
|
|
2016
|
|
% Change
|
|
2017
|
|
2016
|
|
% Change
|
Southern Company
–
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Revenues
|
|
$
|
6,201
|
|
|
$
|
6,264
|
|
|
(1.0)
|
%
|
|
$
|
17,403
|
|
|
$
|
14,715
|
|
|
18.3
|
%
|
Earnings Before
Income Taxes
|
|
1,699
|
|
|
1,616
|
|
|
5.1
|
%
|
|
744
|
|
|
3,241
|
|
|
(77.0)
|
%
|
Net Income Available
to Common
|
|
1,069
|
|
|
1,139
|
|
|
(6.1)
|
%
|
|
347
|
|
|
2,251
|
|
|
(84.6)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Alabama Power
–
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Revenues
|
|
$
|
1,740
|
|
|
$
|
1,785
|
|
|
(2.5)
|
%
|
|
$
|
4,606
|
|
|
$
|
4,561
|
|
|
1.0
|
%
|
Earnings Before
Income Taxes
|
|
546
|
|
|
575
|
|
|
(5.0)
|
%
|
|
1,236
|
|
|
1,196
|
|
|
3.3
|
%
|
Net Income Available
to Common
|
|
325
|
|
|
352
|
|
|
(7.7)
|
%
|
|
729
|
|
|
721
|
|
|
1.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Georgia Power
–
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Revenues
|
|
$
|
2,546
|
|
|
$
|
2,698
|
|
|
(5.6)
|
%
|
|
$
|
6,426
|
|
|
$
|
6,621
|
|
|
(2.9)
|
%
|
Earnings Before
Income Taxes
|
|
934
|
|
|
967
|
|
|
(3.4)
|
%
|
|
1,906
|
|
|
1,964
|
|
|
(3.0)
|
%
|
Net Income Available
to Common
|
|
580
|
|
|
600
|
|
|
(3.3)
|
%
|
|
1,188
|
|
|
1,217
|
|
|
(2.4)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gulf Power
–
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Revenues
|
|
$
|
437
|
|
|
$
|
436
|
|
|
0.2
|
%
|
|
$
|
1,144
|
|
|
$
|
1,136
|
|
|
0.7
|
%
|
Earnings Before
Income Taxes
|
|
103
|
|
|
77
|
|
|
33.8
|
%
|
|
199
|
|
|
189
|
|
|
5.3
|
%
|
Net Income Available
to Common
|
|
63
|
|
|
45
|
|
|
40.0
|
%
|
|
117
|
|
|
108
|
|
|
8.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mississippi Power
–
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Revenues
|
|
$
|
341
|
|
|
$
|
352
|
|
|
(3.1)
|
%
|
|
$
|
915
|
|
|
$
|
885
|
|
|
3.4
|
%
|
Earnings (Loss)
Before Income Taxes
|
|
64
|
|
|
24
|
|
|
166.7
|
%
|
|
(2,918)
|
|
|
11
|
|
|
N/M
|
|
Net Income (Loss)
Available to Common
|
|
40
|
|
|
26
|
|
|
53.8
|
%
|
|
(2,034)
|
|
|
39
|
|
|
N/M
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Southern Power
–
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Revenues
|
|
$
|
618
|
|
|
$
|
500
|
|
|
23.6
|
%
|
|
$
|
1,597
|
|
|
$
|
1,189
|
|
|
34.3
|
%
|
Earnings Before
Income Taxes
|
|
115
|
|
|
101
|
|
|
13.9
|
%
|
|
195
|
|
|
187
|
|
|
4.3
|
%
|
Net Income Available
to Common
|
|
124
|
|
|
176
|
|
|
(29.5)
|
%
|
|
276
|
|
|
315
|
|
|
(12.4)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Southern Company
Gas1 –
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Revenues
|
|
$
|
565
|
|
|
$
|
543
|
|
|
4.1
|
%
|
|
$
|
2,841
|
|
|
$
|
543
|
|
|
N/M
|
|
Earnings Before
Income Taxes
|
|
67
|
|
|
11
|
|
|
N/M
|
|
|
536
|
|
|
11
|
|
|
N/M
|
|
Net Income Available
to Common
|
|
15
|
|
|
4
|
|
|
N/M
|
|
|
303
|
|
|
4
|
|
|
N/M
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
N/M - not
meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes
|
|
|
|
|
|
|
|
|
|
|
|
|
- In connection with
the adoption in the fourth quarter 2016 of a new accounting
standard for stock compensation, previously reported amounts for
income tax expense were reduced by a total of $9 million and $25
million for the three and nine months ended September 30, 2016,
respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) On July 1, 2016,
Southern Company completed the acquisition of Southern Company
Gas.
|
View original content with
multimedia:http://www.prnewswire.com/news-releases/southern-company-reports-third-quarter-2017-earnings-300547136.html
SOURCE Southern Company