Southern Co. Profit Rises, Helped by Solar Investments
October 28 2015 - 11:50AM
Dow Jones News
Southern Co., one of the biggest utilities in the U.S., said
profit jumped in the latest quarter, thanks to growth in the
company's solar investments and higher retail revenue.
The Atlanta company, which in August struck a deal to buy
natural-gas utility AGL Resources Inc. for about $8 billion in a
move to access fast-growing gas markets from New Jersey to Florida,
said solar investments in its Southern Power unit, in addition to
higher retail revenue in the company's traditional operating
segments, drove results.
Meanwhile, Southern said third-quarter earnings were
significantly affected by estimated probable losses stemming from
its Kemper County project, a clean-coal power plant under
construction in Mississippi. Southern's results of late have been
hurt by the project, where completion dates have been repeatedly
delayed and which was dealt a blow in May when South Mississippi
Electric Power Association, which furnishes power to smaller
utilities in the state, pulled its investment.
Kemper shaved 11 cents off per-share earnings in the latest
quarter, Southern said. The company has said that it expects an
in-service date for Kemper in the first half of 2016.
For the quarter, Southern reported a profit of $959 million, or
$1.05 a share, up from $718 million, or 80 cents, a year earlier.
Excluding items, per-share earnings rose to $1.17 from $1.09.
Operating revenue edged 1.2% higher to $5.4 billion.
Analysts polled by Thomson Reuters projected per-share earnings
of $1.16 on $5.72 billion in revenue.
Shares in the company, down about 7% this year, rose 1.1% in
morning trading.
Write to Lisa Beilfuss at lisa.beilfuss@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
October 28, 2015 11:35 ET (15:35 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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