ATLANTA, Feb. 18, 2021 /PRNewswire/ -- Southern
Company today reported fourth-quarter 2020 earnings of $387 million, or 37
cents per share, compared with $440
million, or 42 cents per
share, in the fourth quarter of 2019. Southern Company also
reported full-year 2020 earnings of $3.12
billion, or $2.95 per share,
compared with earnings of $4.74
billion, or $4.53 per share,
in 2019.
Excluding the items described under "Net Income – Excluding
Items" in the table below, Southern Company earned $497 million, or 47
cents per share, during the fourth quarter of 2020, compared
with $283 million, or 27 cents per share, during the fourth quarter of
2019. For the full-year 2020, excluding these items, Southern
Company earned $3.44 billion, or
$3.25 per share, compared with
$3.25 billion, or $3.11 per share, in 2019.
Non-GAAP Financial
Measures
|
Three Months Ended
December
|
|
Year-to-Date
December
|
Net Income -
Excluding Items (in millions)
|
2020
|
2019
|
|
2020
|
2019
|
Net Income - As
Reported
|
$387
|
$440
|
|
$3,119
|
$4,739
|
Less:
|
|
|
|
|
|
Acquisition and Disposition Impacts
|
22
|
39
|
|
60
|
2,516
|
Tax
Impact
|
(6)
|
48
|
|
(22)
|
(1,081)
|
Estimated Loss on Plants Under Construction
|
(177)
|
(11)
|
|
(328)
|
(27)
|
Tax
Impact
|
45
|
(4)
|
|
84
|
-
|
Wholesale Gas Services
|
78
|
136
|
|
17
|
215
|
Tax
Impact
|
(19)
|
(34)
|
|
(3)
|
(52)
|
Asset
Impairments
|
(52)
|
(16)
|
|
(206)
|
(108)
|
Tax
Impact
|
21
|
(1)
|
|
101
|
26
|
Loss on
Extinguishment of Debt
|
(29)
|
-
|
|
(29)
|
-
|
Tax
Impact
|
7
|
-
|
|
7
|
-
|
Net Income –
Excluding Items
|
$497
|
$283
|
|
$3,438
|
$3,250
|
Average Shares
Outstanding – (in
millions)
|
1,058
|
1,052
|
|
1,058
|
1,046
|
Basic Earnings Per
Share – Excluding Items
|
$0.47
|
$0.27
|
|
$3.25
|
$3.11
|
|
|
NOTE:
|
For more information
regarding these non-GAAP adjustments, see the footnotes
accompanying the Financial Highlights page of the earnings
package.
|
Earnings drivers for the full year 2020 were positively
influenced by diligent cost control and constructive state
regulatory actions completed in 2019 at the company's utilities,
more than offsetting the impact of a decline in sales related to
the COVID-19 pandemic and milder weather.
"In a year that saw many challenges, Southern Company
demonstrated significant resilience and operational excellence on
multiple fronts," said Chairman, President and CEO, Thomas A. Fanning. "These efforts included
prioritizing the health and safety of our workforce and
communities, restoring electric service amid a record storm season
and maintaining outstanding generation fleet reliability while
delivering best-in-class customer service."
Fourth-quarter 2020 operating revenues were $5.1 billion, compared with $4.9 billion for the fourth quarter of 2019, an
increase of 4.1 percent. Operating revenues for the full year were
$20.4 billion, compared with
$21.4 billion in 2019, a decrease of
4.9 percent. The full year decrease was primarily
due to lower fuel costs and a sales decline resulting from milder
weather and COVID-19.
Southern Company's fourth-quarter earnings slides with
supplemental financial information, including earnings guidance for
2021, 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 Andrew W. Evans will discuss earnings and
provide a general business update, including an update on the
Vogtle units 3 and 4 construction project. 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
a leading energy company serving 9 million customers through its
subsidiaries. The company provides clean, safe, reliable and
affordable energy through electric operating companies in three
states, natural gas distribution companies in four states, a
competitive generation company serving wholesale customers across
America, a leading distributed energy infrastructure company, a
fiber optics network and telecommunications services. Southern
Company brands are known for excellent customer service, high
reliability and affordable prices below the national average. For
more than a century, we have been building the future of energy and
developing the full portfolio of energy resources, including
carbon-free nuclear, advanced carbon capture technologies, natural
gas, renewables, energy efficiency and storage technology. Through
an industry-leading commitment to innovation and a low-carbon
future, Southern Company and its subsidiaries develop the
customized energy solutions our customers and communities require
to drive growth and prosperity. Our uncompromising values ensure we
put the needs of those we serve at the center of everything we do
and govern our business to the benefit of our world. Our corporate
culture and hiring practices have been recognized nationally by the
U.S. Department of Defense, G.I. Jobs magazine, DiversityInc, Black
Enterprise, Forbes and the Women's Choice Award. To learn more,
visit www.southerncompany.com.
|
Southern
Company
|
Financial
Highlights
|
(In Millions of
Dollars Except Earnings Per Share)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December
|
|
Year-to-Date
December
|
Net Income–As
Reported (See Notes)
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Traditional
Electric Operating Companies
|
$
|
306
|
|
|
$
|
210
|
|
|
$
|
2,877
|
|
|
$
|
2,929
|
|
Southern
Power
|
26
|
|
|
23
|
|
|
238
|
|
|
339
|
|
Southern Company
Gas
|
230
|
|
|
238
|
|
|
590
|
|
|
585
|
|
Total
|
562
|
|
|
471
|
|
|
3,705
|
|
|
3,853
|
|
Parent Company
and Other
|
(175)
|
|
|
(31)
|
|
|
(586)
|
|
|
886
|
|
Net
Income–As Reported
|
$
|
387
|
|
|
$
|
440
|
|
|
$
|
3,119
|
|
|
$
|
4,739
|
|
|
|
|
|
|
|
|
|
Basic Earnings
Per Share1
|
$
|
0.37
|
|
|
$
|
0.42
|
|
|
$
|
2.95
|
|
|
$
|
4.53
|
|
Average Shares
Outstanding (in millions)
|
1,058
|
|
|
1,052
|
|
|
1,058
|
|
|
1,046
|
|
End of Period
Shares Outstanding (in millions)
|
|
|
|
|
1,056
|
|
|
1,053
|
|
|
|
|
|
|
|
|
|
Non-GAAP Financial
Measures
|
Three Months
Ended
December
|
|
Year-to-Date
December
|
Net
Income–Excluding Items (See Notes)
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Net Income–As
Reported
|
$
|
387
|
|
|
$
|
440
|
|
|
$
|
3,119
|
|
|
$
|
4,739
|
|
Less:
|
|
|
|
|
|
|
|
Acquisition and
Disposition Impacts2
|
22
|
|
|
39
|
|
|
60
|
|
|
2,516
|
|
Tax Impact
|
(6)
|
|
|
48
|
|
|
(22)
|
|
|
(1,081)
|
|
Estimated Loss on
Plants Under Construction3
|
(177)
|
|
|
(11)
|
|
|
(328)
|
|
|
(27)
|
|
Tax Impact
|
45
|
|
|
(4)
|
|
|
84
|
|
|
—
|
|
Wholesale Gas
Services4
|
78
|
|
|
136
|
|
|
17
|
|
|
215
|
|
Tax Impact
|
(19)
|
|
|
(34)
|
|
|
(3)
|
|
|
(52)
|
|
Asset
Impairments5
|
(52)
|
|
|
(16)
|
|
|
(206)
|
|
|
(108)
|
|
Tax Impact
|
21
|
|
|
(1)
|
|
|
101
|
|
|
26
|
|
Loss on Extinguishment
of Debt6
|
(29)
|
|
|
—
|
|
|
(29)
|
|
|
—
|
|
Tax Impact
|
7
|
|
|
—
|
|
|
7
|
|
|
—
|
|
Net
Income–Excluding Items
|
$
|
497
|
|
|
$
|
283
|
|
|
$
|
3,438
|
|
|
$
|
3,250
|
|
|
|
|
|
|
|
|
|
Basic Earnings
Per Share–Excluding Items
|
$
|
0.47
|
|
|
$
|
0.27
|
|
|
$
|
3.25
|
|
|
$
|
3.11
|
|
-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
$0.36 and $2.93 for the three and twelve months ended December 31,
2020, respectively, and $0.42 and $4.50 for the three and twelve
months ended December 31, 2019, respectively.
|
(2)
|
Earnings for the
three and twelve months ended December 31, 2020 primarily include a
$22 million pre-tax ($16 million after-tax) gain on the sale of
Southern Company Gas' natural gas storage facility in Louisiana.
Earnings for the twelve months ended December 31, 2020 also include
a $39 million pre-tax ($23 million after-tax) gain on the sale of
Southern Power Company's Plant Mankato. Earnings for the three
months ended December 31, 2019 include: (i) a $70 million pre-tax
($102 million after-tax) increase in the gain on the sale of Gulf
Power Company; (ii) a $24 million pre-tax ($17 million after-tax)
impairment charge in contemplation of the sale of Pivotal LNG and
Atlantic Coast Pipeline; and (iii) a net $7 million pre-tax
reduction to earnings (net $2 million after-tax increase to
earnings) of other acquisition and disposition impacts.
Earnings for the twelve months ended December 31, 2019 include: (i)
a $2.6 billion pre-tax ($1.4 billion after-tax) gain on the sale of
Gulf Power Company; (ii) a $23 million pre-tax ($88 million
after-tax) gain on the sale of Southern Power Company's Plant
Nacogdoches; and (iii) $18 million pre tax ($11 million after tax)
of other acquisition and disposition impacts, partially offset by:
(i) a $58 million pre-tax ($52 million after-tax) net loss,
including impairment charges, associated with the sales of
PowerSecure, Inc.'s utility infrastructure services and lighting
businesses and (ii) a $24 million pre-tax ($17 million after-tax)
impairment charge in contemplation of the sale of Pivotal LNG and
Atlantic Coast Pipeline.
|
(3)
|
Earnings for the
three and twelve months ended December 31, 2020 include charges
of $176 million pre tax ($131 million after tax) and $325
million pre tax ($242 million after tax), respectively, for
estimated probable losses on Georgia Power Company's construction
of Plant Vogtle Units 3 and 4. Further charges may occur;
however, the amount and timing of any such charges are
uncertain. Earnings for the three and twelve months ended
December 31, 2020 and 2019 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, totaling $10 million to
$20 million annually through 2025.
|
(4)
|
Earnings for the
three and twelve months ended December 31, 2020 and 2019 include
Wholesale Gas Services business results. Presenting earnings and
earnings per share excluding Wholesale Gas Services provides 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.
|
(5)
|
Earnings for the
three and twelve months ended December 31, 2020 include impairment
charges related to two leveraged leases. Earnings for the twelve
months ended December 31, 2019 include a pre-tax impairment charge
of $91 million ($69 million after tax) associated with a natural
gas storage facility in Louisiana and earnings for the three months
ended December 31, 2019 include an adjustment of $(1) million ($4
million after tax) of this impairment charge. Additionally,
earnings for the three and twelve months ended December 31, 2019
include a pre-tax impairment charge of $17 million ($13 million
after tax) related to a leveraged lease. Further charges
associated with this natural gas storage facility and these
leveraged leases are not expected.
|
(6)
|
Earnings for the
three and twelve months ended December 31, 2020 include costs
associated with the extinguishment of debt at Southern
Company. Further costs may occur; however, the amount and
timing of any such costs are uncertain.
|
|
|
Southern
Company
|
Significant
Factors Impacting EPS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December
|
|
Year-to-Date
December
|
|
2020
|
|
2019
|
|
Change
|
|
2020
|
|
2019
|
|
Change
|
Earnings Per
Share–
|
|
|
|
|
|
|
|
|
|
|
|
As
Reported1 (See Notes)
|
$
|
0.37
|
|
|
$
|
0.42
|
|
|
$
|
(0.05)
|
|
|
$
|
2.95
|
|
|
$
|
4.53
|
|
|
$
|
(1.58)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Significant
Factors:
|
|
|
|
|
|
|
|
|
|
|
|
Traditional
Electric Operating Companies
|
|
|
|
|
$
|
0.09
|
|
|
|
|
|
|
$
|
(0.05)
|
|
Southern
Power
|
|
|
|
|
—
|
|
|
|
|
|
|
(0.10)
|
|
Southern Company
Gas
|
|
|
|
|
(0.01)
|
|
|
|
|
|
|
0.01
|
|
Parent Company and
Other
|
|
|
|
|
(0.13)
|
|
|
|
|
|
|
(1.41)
|
|
Increase in
Shares
|
|
|
|
|
—
|
|
|
|
|
|
|
(0.03)
|
|
Total–As
Reported
|
|
|
|
|
$
|
(0.05)
|
|
|
|
|
|
|
$
|
(1.58)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December
|
|
Year-to-Date
December
|
Non-GAAP Financial
Measures
|
2020
|
|
2019
|
|
Change
|
|
2020
|
|
2019
|
|
Change
|
Earnings Per
Share–
|
|
|
|
|
|
|
|
|
|
|
|
Excluding Items
(See Notes)
|
$
|
0.47
|
|
|
$
|
0.27
|
|
|
$
|
0.20
|
|
|
$
|
3.25
|
|
|
$
|
3.11
|
|
|
$
|
0.14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total–As
Reported
|
|
|
|
|
$
|
(0.05)
|
|
|
|
|
|
|
$
|
(1.58)
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition and
Disposition Impacts2
|
|
|
|
|
(0.07)
|
|
|
|
|
|
|
(1.33)
|
|
Estimated Loss on
Plants Under Construction3
|
|
|
|
|
(0.11)
|
|
|
|
|
|
|
(0.20)
|
|
Wholesale Gas
Services4
|
|
|
|
|
(0.04)
|
|
|
|
|
|
|
(0.15)
|
|
Asset
Impairments5
|
|
|
|
|
(0.01)
|
|
|
|
|
|
|
(0.02)
|
|
Loss on Extinguishment
of Debt6
|
|
|
|
|
$
|
(0.02)
|
|
|
|
|
|
|
$
|
(0.02)
|
|
Total–Excluding Items
|
|
|
|
|
$
|
0.20
|
|
|
|
|
|
|
$
|
0.14
|
|
|
- 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
$0.36 and $2.93 for the three and twelve months ended December 31,
2020, respectively, and $0.42 and $4.50 for the three and twelve
months ended December 31, 2019, respectively.
|
(2)
|
Earnings for the
three and twelve months ended December 31, 2020 primarily include a
$22 million pre-tax ($16 million after-tax) gain on the sale of
Southern Company Gas' natural gas storage facility in Louisiana.
Earnings for the twelve months ended December 31, 2020 also include
a $39 million pre-tax ($23 million after-tax) gain on the sale of
Southern Power Company's Plant Mankato. Earnings for the three
months ended December 31, 2019 include: (i) a $70 million pre-tax
($102 million after-tax) increase in the gain on the sale of Gulf
Power Company; (ii) a $24 million pre-tax ($17 million after-tax)
impairment charge in contemplation of the sale of Pivotal LNG and
Atlantic Coast Pipeline; and (iii) a net $7 million pre-tax
reduction to earnings (net $2 million after-tax increase to
earnings) of other acquisition and disposition impacts.
Earnings for the twelve months ended December 31, 2019 include: (i)
a $2.6 billion pre-tax ($1.4 billion after-tax) gain on the sale of
Gulf Power Company; (ii) a $23 million pre-tax ($88 million
after-tax) gain on the sale of Southern Power Company's Plant
Nacogdoches; and (iii) $18 million pre tax ($11 million after tax)
of other acquisition and disposition impacts, partially offset by:
(i) a $58 million pre-tax ($52 million after-tax) net loss,
including impairment charges, associated with the sales of
PowerSecure, Inc.'s utility infrastructure services and lighting
businesses and (ii) a $24 million pre-tax ($17 million after-tax)
impairment charge in contemplation of the sale of Pivotal LNG and
Atlantic Coast Pipeline.
|
(3)
|
Earnings for the
three and twelve months ended December 31, 2020 include charges
of $176 million pre tax ($131 million after tax) and $325
million pre tax ($242 million after tax), respectively, for
estimated probable losses on Georgia Power Company's construction
of Plant Vogtle Units 3 and 4. Further charges may occur;
however, the amount and timing of any such charges are
uncertain. Earnings for the three and twelve months ended
December 31, 2020 and 2019 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, totaling $10 million to
$20 million annually through 2025.
|
(4)
|
Earnings for the
three and twelve months ended December 31, 2020 and 2019 include
Wholesale Gas Services business results. Presenting earnings and
earnings per share excluding Wholesale Gas Services provides 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.
|
(5)
|
Earnings for the
three and twelve months ended December 31, 2020 include impairment
charges related to two leveraged leases. Earnings for the twelve
months ended December 31, 2019 include a pre-tax impairment charge
of $91 million ($69 million after tax) associated with a natural
gas storage facility in Louisiana and earnings for the three months
ended December 31, 2019 include an adjustment of $(1) million ($4
million after tax) of this impairment charge. Additionally,
earnings for the three and twelve months ended December 31, 2019
include a pre-tax impairment charge of $17 million ($13 million
after tax) related to a leveraged lease. Further charges
associated with this natural gas storage facility and these
leveraged leases are not expected.
|
(6)
|
Earnings for the
three and twelve months ended December 31, 2020 include costs
associated with the extinguishment of debt at Southern
Company. Further costs may occur; however, the amount and
timing of any such costs are uncertain.
|
|
Southern
Company
EPS Earnings
Analysis
|
|
|
|
|
Description
|
Three Months
Ended
December
2020 vs. 2019
|
|
Year-to-Date
December
2020 vs. 2019
|
|
|
|
|
|
|
|
|
Retail
Sales
|
$(0.03)
|
|
$(0.14)
|
|
|
|
|
|
|
|
|
Retail Revenue
Impacts
|
0.15
|
|
0.39
|
|
|
|
|
|
|
|
|
Weather
|
0.01
|
|
(0.21)
|
|
|
|
|
|
|
|
|
Wholesale & Other
Operating Revenues
|
0.03
|
|
0.02
|
|
|
|
|
|
|
|
|
Non-Fuel
O&M
|
0.06
|
|
0.12
|
|
|
|
|
|
|
|
|
Depreciation and
Amortization, Interest Expense, Other
|
(0.06)
|
|
(0.21)
|
|
|
|
|
|
|
|
|
Income
Taxes
|
0.04
|
|
0.19
|
|
|
|
|
|
|
|
|
Total Traditional
Electric Operating Companies
|
$0.20
|
|
$0.16
|
|
|
|
|
|
|
|
|
Southern
Power
|
0.01
|
|
(0.02)
|
|
|
|
|
|
|
|
|
Southern Company
Gas
|
—
|
|
0.05
|
|
|
|
|
|
|
|
|
Parent and
Other
|
(0.01)
|
|
(0.01)
|
|
|
|
|
|
|
|
|
Increase in
Shares
|
—
|
|
(0.04)
|
|
|
|
|
|
|
|
|
Total Change in
EPS (Excluding Items)
|
$0.20
|
|
$0.14
|
|
|
|
|
|
|
|
|
Acquisition and
Disposition Impacts1
|
(0.07)
|
|
(1.33)
|
|
|
|
|
|
|
|
|
Estimated Loss on
Plants Under Construction2
|
(0.11)
|
|
(0.20)
|
|
|
|
|
|
|
|
|
Wholesale Gas
Services3
|
(0.04)
|
|
(0.15)
|
|
|
|
|
|
|
|
|
Asset
Impairments5
|
(0.01)
|
|
(0.02)
|
|
|
|
|
|
|
|
|
Loss on
Extinguishment of Debt6
|
(0.02)
|
|
(0.02)
|
|
|
|
|
|
|
|
|
Total Change in
EPS (As Reported)
|
$(0.05)
|
|
$(1.58)
|
- See Notes on the following page.
|
|
Southern
Company EPS Earnings Analysis
|
|
|
Notes
|
|
(1)
|
Earnings for the
three and twelve months ended December 31, 2020 primarily include a
$22 million pre-tax ($16 million after-tax) gain on the sale of
Southern Company Gas' natural gas storage facility in Louisiana.
Earnings for the twelve months ended December 31, 2020 also include
a $39 million pre-tax ($23 million after-tax) gain on the sale of
Southern Power Company's Plant Mankato. Earnings for the three
months ended December 31, 2019 include: (i) a $70 million pre-tax
($102 million after-tax) increase in the gain on the sale of Gulf
Power Company; (ii) a $24 million pre-tax ($17 million after-tax)
impairment charge in contemplation of the sale of Pivotal LNG and
Atlantic Coast Pipeline; and (iii) a net $7 million pre-tax
reduction to earnings (net $2 million after-tax increase to
earnings) of other acquisition and disposition impacts.
Earnings for the twelve months ended December 31, 2019 include: (i)
a $2.6 billion pre-tax ($1.4 billion after-tax) gain on the sale of
Gulf Power Company; (ii) a $23 million pre-tax ($88 million
after-tax) gain on the sale of Southern Power Company's Plant
Nacogdoches; and (iii) $18 million pre tax ($11 million after tax)
of other acquisition and disposition impacts, partially offset by:
(i) a $58 million pre-tax ($52 million after-tax) net loss,
including impairment charges, associated with the sales of
PowerSecure, Inc.'s utility infrastructure services and lighting
businesses and (ii) a $24 million pre-tax ($17 million after-tax)
impairment charge in contemplation of the sale of Pivotal LNG and
Atlantic Coast Pipeline.
|
(2)
|
Earnings for the
three and twelve months ended December 31, 2020 include charges
of $176 million pre tax ($131 million after tax) and $325
million pre tax ($242 million after tax), respectively, for
estimated probable losses on Georgia Power Company's construction
of Plant Vogtle Units 3 and 4. Further charges may occur;
however, the amount and timing of any such charges are
uncertain. Earnings for the three and twelve months ended
December 31, 2020 and 2019 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, totaling $10 million to
$20 million annually through 2025.
|
(3)
|
Earnings for the
three and twelve months ended December 31, 2020 and 2019 include
Wholesale Gas Services business results. Presenting earnings and
earnings per share excluding Wholesale Gas Services provides 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.
|
(4)
|
Earnings for the
three and twelve months ended December 31, 2020 include impairment
charges related to two leveraged leases. Earnings for the twelve
months ended December 31, 2019 include a pre-tax impairment charge
of $91 million ($69 million after tax) associated with a natural
gas storage facility in Louisiana and earnings for the three months
ended December 31, 2019 include an adjustment of $(1) million ($4
million after tax) of this impairment charge. Additionally,
earnings for the three and twelve months ended December 31, 2019
include a pre-tax impairment charge of $17 million ($13 million
after tax) related to a leveraged lease. Further charges
associated with this natural gas storage facility and these
leveraged leases are not expected.
|
(5)
|
Earnings for the
three and twelve months ended December 31, 2020 include costs
associated with the extinguishment of debt at Southern
Company. Further costs may occur; however, the amount and
timing of any such costs are uncertain.
|
|
Southern
Company
|
Consolidated
Earnings
|
As
Reported
|
(In Millions of
Dollars)
|
|
Three Months Ended
December
|
|
Year-to-Date
December
|
|
2020
|
|
2019
|
|
Change
|
|
2020
|
|
2019
|
|
Change
|
Income
Account-
|
|
|
|
|
|
|
|
|
|
|
|
Retail Electric
Revenues-
|
|
|
|
|
|
|
|
|
|
|
|
Fuel
|
$
|
786
|
|
|
$
|
784
|
|
|
$
|
2
|
|
|
$
|
3,087
|
|
|
$
|
3,591
|
|
|
$
|
(504)
|
|
Non-Fuel
|
2,354
|
|
|
2,164
|
|
|
190
|
|
|
10,556
|
|
|
10,493
|
|
|
63
|
|
Wholesale Electric
Revenues
|
472
|
|
|
485
|
|
|
(13)
|
|
|
1,945
|
|
|
2,152
|
|
|
(207)
|
|
Other Electric
Revenues
|
188
|
|
|
144
|
|
|
44
|
|
|
672
|
|
|
636
|
|
|
36
|
|
Natural Gas
Revenues
|
1,072
|
|
|
1,131
|
|
|
(59)
|
|
|
3,434
|
|
|
3,792
|
|
|
(358)
|
|
Other
Revenues
|
245
|
|
|
206
|
|
|
39
|
|
|
681
|
|
|
755
|
|
|
(74)
|
|
Total
Revenues
|
5,117
|
|
|
4,914
|
|
|
203
|
|
|
20,375
|
|
|
21,419
|
|
|
(1,044)
|
|
Fuel and Purchased
Power
|
965
|
|
|
977
|
|
|
(12)
|
|
|
3,766
|
|
|
4,438
|
|
|
(672)
|
|
Cost of Natural
Gas
|
318
|
|
|
363
|
|
|
(45)
|
|
|
972
|
|
|
1,319
|
|
|
(347)
|
|
Cost of Other
Sales
|
126
|
|
|
119
|
|
|
7
|
|
|
327
|
|
|
435
|
|
|
(108)
|
|
Non-Fuel
O&M
|
1,628
|
|
|
1,726
|
|
|
(98)
|
|
|
5,413
|
|
|
5,624
|
|
|
(211)
|
|
Depreciation and
Amortization
|
899
|
|
|
771
|
|
|
128
|
|
|
3,518
|
|
|
3,038
|
|
|
480
|
|
Taxes Other Than
Income Taxes
|
302
|
|
|
299
|
|
|
3
|
|
|
1,234
|
|
|
1,230
|
|
|
4
|
|
Estimated Loss on
Plant Vogtle Units 3 and 4
|
176
|
|
|
—
|
|
|
176
|
|
|
325
|
|
|
—
|
|
|
325
|
|
Impairment
Charges
|
—
|
|
|
26
|
|
|
(26)
|
|
|
—
|
|
|
168
|
|
|
(168)
|
|
(Gain) Loss on
Dispositions, net
|
(26)
|
|
|
(57)
|
|
|
31
|
|
|
(65)
|
|
|
(2,569)
|
|
|
2,504
|
|
Total Operating
Expenses
|
4,388
|
|
|
4,224
|
|
|
164
|
|
|
15,490
|
|
|
13,683
|
|
|
1,807
|
|
Operating
Income
|
729
|
|
|
690
|
|
|
39
|
|
|
4,885
|
|
|
7,736
|
|
|
(2,851)
|
|
Allowance for Equity
Funds Used During Construction
|
43
|
|
|
32
|
|
|
11
|
|
|
149
|
|
|
128
|
|
|
21
|
|
Earnings from Equity
Method Investments
|
48
|
|
|
42
|
|
|
6
|
|
|
153
|
|
|
162
|
|
|
(9)
|
|
Interest Expense, Net
of Amounts Capitalized
|
478
|
|
|
442
|
|
|
36
|
|
|
1,821
|
|
|
1,736
|
|
|
85
|
|
Impairment of
Leveraged Lease
|
52
|
|
|
—
|
|
|
52
|
|
|
206
|
|
|
—
|
|
|
206
|
|
Other Income
(Expense), net
|
17
|
|
|
13
|
|
|
4
|
|
|
336
|
|
|
252
|
|
|
84
|
|
Income
Taxes
|
(50)
|
|
|
(74)
|
|
|
24
|
|
|
393
|
|
|
1,798
|
|
|
(1,405)
|
|
Net
Income
|
357
|
|
|
409
|
|
|
(52)
|
|
|
3,103
|
|
|
4,744
|
|
|
(1,641)
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
Dividends on Preferred
Stock of Subsidiaries
|
4
|
|
|
5
|
|
|
(1)
|
|
|
15
|
|
|
15
|
|
|
—
|
|
Net Income (Loss)
Attributable to Noncontrolling Interests
|
(34)
|
|
|
(36)
|
|
|
2
|
|
|
(31)
|
|
|
(10)
|
|
|
(21)
|
|
NET INCOME
ATTRIBUTABLE TO SOUTHERN COMPANY
|
$
|
387
|
|
|
$
|
440
|
|
|
$
|
(53)
|
|
|
$
|
3,119
|
|
|
$
|
4,739
|
|
|
$
|
(1,620)
|
|
|
|
Notes
|
|
- Certain prior year
data may have been reclassified to conform with current year
presentation.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Southern
Company
|
Kilowatt-Hour
Sales and Customers
|
(In Millions of
KWHs)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December
|
|
Year-to-Date
December
|
|
2020
|
|
2019
|
|
Change
|
|
Weather Adjusted
Change
|
|
2020
|
|
2019
|
|
Change
|
|
Weather Adjusted
Change
|
Kilowatt-Hour
Sales-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Sales
|
45,315
|
|
|
46,185
|
|
|
(1.9)
|
%
|
|
|
|
186,225
|
|
|
196,488
|
|
|
(5.2)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Retail
Sales-
|
33,823
|
|
|
34,254
|
|
|
(1.3)
|
%
|
|
(1.7)
|
%
|
|
140,546
|
|
|
148,461
|
|
|
(5.3)
|
%
|
|
(3.0)
|
%
|
Residential
|
10,987
|
|
|
10,738
|
|
|
2.3
|
%
|
|
1.2
|
%
|
|
47,472
|
|
|
48,528
|
|
|
(2.2)
|
%
|
|
3.1
|
%
|
Commercial
|
10,824
|
|
|
11,324
|
|
|
(4.4)
|
%
|
|
(5.0)
|
%
|
|
45,434
|
|
|
49,101
|
|
|
(7.5)
|
%
|
|
(5.7)
|
%
|
Industrial
|
11,853
|
|
|
12,022
|
|
|
(1.4)
|
%
|
|
(1.4)
|
%
|
|
46,982
|
|
|
50,106
|
|
|
(6.2)
|
%
|
|
(6.2)
|
%
|
Other
|
159
|
|
|
170
|
|
|
(6.2)
|
%
|
|
(6.2)
|
%
|
|
658
|
|
|
726
|
|
|
(9.5)
|
%
|
|
(9.3)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Wholesale
Sales
|
11,492
|
|
|
11,931
|
|
|
(3.7)
|
%
|
|
N/A
|
|
45,679
|
|
|
48,027
|
|
|
(4.9)
|
%
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In Thousands
of Customers)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period Ended
December
|
|
|
|
|
|
|
|
|
|
|
|
2020
|
|
2019
|
|
Change
|
|
|
Regulated Utility
Customers-
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Utility
Customers-
|
|
|
|
|
|
|
|
8,630
|
|
8,543
|
|
1.0%
|
|
|
Total Traditional
Electric
|
|
|
|
|
|
4,322
|
|
4,266
|
|
1.3%
|
|
|
Southern Company
Gas
|
|
|
|
|
|
|
|
4,308
|
|
4,277
|
|
0.7%
|
|
|
Southern
Company
|
Financial
Overview
|
As
Reported
|
(In Millions of
Dollars)
|
|
Three Months Ended
December
|
|
Year-to-Date
December
|
|
2020
|
|
2019
|
|
% Change
|
|
2020
|
|
2019
|
|
% Change
|
Southern
Company1, 2 –
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Revenues
|
$
|
5,117
|
|
|
$
|
4,914
|
|
|
4.1
|
%
|
|
$
|
20,375
|
|
|
$
|
21,419
|
|
|
(4.9)
|
%
|
Earnings Before
Income Taxes
|
307
|
|
|
335
|
|
|
(8.4)
|
%
|
|
3,496
|
|
|
6,542
|
|
|
(46.6)
|
%
|
Net Income Available
to Common
|
387
|
|
|
440
|
|
|
(12.0)
|
%
|
|
3,119
|
|
|
4,739
|
|
|
(34.2)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Alabama Power
–
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Revenues
|
$
|
1,385
|
|
|
$
|
1,363
|
|
|
1.6
|
%
|
|
$
|
5,830
|
|
|
$
|
6,125
|
|
|
(4.8)
|
%
|
Earnings Before
Income Taxes
|
162
|
|
|
67
|
|
|
141.8
|
%
|
|
1,502
|
|
|
1,355
|
|
|
10.8
|
%
|
Net Income Available
to Common
|
128
|
|
|
88
|
|
|
45.5
|
%
|
|
1,150
|
|
|
1,070
|
|
|
7.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Georgia Power
–
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Revenues
|
$
|
1,938
|
|
|
$
|
1,703
|
|
|
13.8
|
%
|
|
$
|
8,309
|
|
|
$
|
8,408
|
|
|
(1.2)
|
%
|
Earnings Before
Income Taxes
|
118
|
|
|
128
|
|
|
(7.8)
|
%
|
|
1,727
|
|
|
2,192
|
|
|
(21.2)
|
%
|
Net Income Available
to Common
|
164
|
|
|
122
|
|
|
34.4
|
%
|
|
1,575
|
|
|
1,720
|
|
|
(8.4)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Mississippi Power
–
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Revenues
|
$
|
277
|
|
|
$
|
294
|
|
|
(5.8)
|
%
|
|
$
|
1,172
|
|
|
$
|
1,264
|
|
|
(7.3)
|
%
|
Earnings Before
Income Taxes
|
8
|
|
|
3
|
|
|
166.7
|
%
|
|
166
|
|
|
169
|
|
|
(1.8)
|
%
|
Net Income Available
to Common
|
14
|
|
|
—
|
|
|
N/M
|
|
|
152
|
|
|
139
|
|
|
9.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Southern
Power2 –
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Revenues
|
$
|
396
|
|
|
$
|
411
|
|
|
(3.6)
|
%
|
|
$
|
1,733
|
|
|
$
|
1,938
|
|
|
(10.6)
|
%
|
Earnings (Loss)
Before Income Taxes
|
(32)
|
|
|
(28)
|
|
|
14.3
|
%
|
|
210
|
|
|
273
|
|
|
(23.1)
|
%
|
Net Income Available
to Common
|
26
|
|
|
23
|
|
|
13.0
|
%
|
|
238
|
|
|
339
|
|
|
(29.8)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Southern Company
Gas –
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Revenues
|
$
|
1,072
|
|
|
$
|
1,131
|
|
|
(5.2)
|
%
|
|
$
|
3,434
|
|
|
$
|
3,792
|
|
|
(9.4)
|
%
|
Earnings Before
Income Taxes
|
305
|
|
|
307
|
|
|
(0.7)
|
%
|
|
763
|
|
|
715
|
|
|
6.7
|
%
|
Net Income Available
to Common
|
230
|
|
|
238
|
|
|
(3.4)
|
%
|
|
590
|
|
|
585
|
|
|
0.9
|
%
|
N/M - Not
meaningful
|
|
Notes
|
|
- See Financial
Highlights pages for discussion of certain significant items
occurring during the periods presented.
|
(1)
|
Earnings comparisons
to the prior year were significantly impacted by the gain
associated with the sale of Gulf Power Company on January 1,
2019.
|
(2)
|
Earnings and revenue
comparisons to the prior year were significantly impacted by
Southern Power's dispositions of Plant Nacogdoches on June 13, 2019
and Plant Mankato on January 17, 2020.
|
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SOURCE Southern Company