Southern Company

10/31/2024 | Press release | Distributed by Public on 10/31/2024 05:30

Southern Company reports third-quarter 2024 earnings

Southern Company reports third-quarter 2024 earnings

ATLANTA, Oct. 31, 2024/PRNewswire/ -- Southern Company today reported third-quarter earnings of $1.5 billion, or $1.40per share, in 2024 compared with earnings of $1.4 billion, or $1.30per share, in the third quarter of 2023. For the nine months ended September 30, 2024, Southern Company reported earnings of $3.9 billion, or $3.53per share, compared with $3.1 billion, or $2.86per share, for the same period in 2023.

Excluding the items described under "Net Income - Excluding Items" in the table below, Southern Company earned $1.6 billion, or $1.43per share, during the third quarter of 2024, compared with $1.5 billion, or $1.42per share, during the third quarter of 2023. For the nine months ended September 30, 2024, excluding these items, Southern Company earned $3.9 billion, or $3.56per share, compared with $3.3 billion, or $3.01per share, for the same period in 2023.

Non-GAAP Financial Measures

Three Months Ended
September


Year-to-Date
September

Net Income - Excluding Items (in millions)

2024

2023


2024

2023

Net Income - As Reported

$ 1,535

$ 1,422


$ 3,867

$ 3,121

Less:






Estimated Loss on Plants Under Construction

(3)

(166)


11

(171)

Tax Impact

1

42


(16)

43

Acquisition and Disposition Impacts

-

(2)


-

(2)

Tax Impact

-

1


-

1

Loss on Extinguishment of Debt

-

-


-

(5)

Tax Impact

-

-


-

1

Estimated Loss on Qualifying Infrastructure Plant

-

-


-

(38)

Tax Impact

-

-


-

10

Impairments

(36)

-


(36)

-

Tax Impact

9

-


9

-

Net Income - Excluding Items

$ 1,564

$ 1,547


$ 3,899

$ 3,282

Average Shares Outstanding - (in millions)

1,097

1,092


1,096

1,092

Basic Earnings Per Share - Excluding Items

$ 1.43

$ 1.42


$ 3.56

$ 3.01

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 third quarter of 2024, as compared with the same period in 2023, were higher utility revenues, partially offset by increased interest expense, depreciation and amortization, non-fuel operations and maintenance expenses, and income taxes.

Third-quarter 2024 operating revenues were $7.3 billion, compared with $7.0 billionfor the third quarter of 2023, an increase of 4.2%. For the nine months ended September 30, 2024, operating revenues were $20.4 billion, compared with $19.2 billionfor the corresponding period in 2023, an increase of 6.1%.

"Our entire company, including our premier, state-regulated electric and gas utilities, continued to perform well during the third quarter," said Christopher C. Womack, chairman, president and CEO.

"Employees across the Southern Company system came together in response to Hurricane Helene, a storm of exceptional magnitude which proved to be the most destructive in GeorgiaPower's history," added Womack. "We are thankful for the thousands of lineworkers, technicians and support staff who joined first responders, emergency management agencies and officials from the local, state and federal government, industry partners and an extraordinary mutual assistance workforce with tireless dedication to restore service to customers across Georgia. We are proud to continue to provide additional assistance to the individuals and families impacted by this devastating storm through contributions to aid organizations and other support. Our commitment to communities and customers has never been more important."

Southern Company's third-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 Timetoday, during which Womack and Chief Financial Officer Daniel S. Tuckerwill 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 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, Fair360, Black Enterprise, J.D. Power, Fortune, Human Rights Campaign and more. To learn more, visit southerncompany.



Southern Company

Financial Highlights

(In Millions Except Earnings Per Share)










Three Months Ended
September


Year-To-Date

September

Net Income - As Reported

2024


2023


2024


2023

Traditional Electric Operating Companies

$ 1,618


$ 1,419


$ 3,630


$ 2,852

Southern Power

82


100


264


288

Southern Company Gas

38


82


555


475

Total

1,738


1,601


4,449


3,615

Parent Company and Other

(203)


(179)


(582)


(494)

Net Income - As Reported

$ 1,535


$ 1,422


$ 3,867


$ 3,121









Basic Earnings Per Share(1)

$ 1.40


$ 1.30


$ 3.53


$ 2.86

Average Shares Outstanding

1,097


1,092


1,096


1,092









Non-GAAP Financial Measures

Three Months Ended
September


Year-To-Date

September

Net Income - Excluding Items

2024


2023


2024


2023

Net Income - As Reported

$ 1,535


$ 1,422


$ 3,867


$ 3,121

Less:








Estimated Loss on Plants Under Construction(2)

(3)


(166)


11


(171)

Tax Impact

1


42


(16)


43

Acquisition and Disposition Impacts(3)

-


(2)


-


(2)

Tax Impact

-


1


-


1

Loss on Extinguishment of Debt(4)

-


-


-


(5)

Tax Impact

-


-


-


1

Estimated Loss on Qualifying Infrastructure Plant(5)

-


-


-


(38)

Tax Impact

-


-


-


10

Impairments(6)

(36)


-


(36)


-

Tax Impact

9


-


9


-

Net Income - Excluding Items

$ 1,564


$ 1,547


$ 3,899


$ 3,282









Basic Earnings Per Share - Excluding Items

$ 1.43


$ 1.42


$ 3.56


$ 3.01

Southern Company
Financial Highlights


Notes

(1)

Dilution is not material in any period presented. Diluted earnings per share was $1.39 and $3.51 for the three and nine months ended September 30, 2024, respectively, and $1.29 and $2.84 for the three and nine months ended September 30, 2023, respectively.

(2)

Earnings for the nine months ended September 30, 2024 include a pre-tax credit to income of $21 million ($16 million after tax) related to the estimated probable loss on Plant Vogtle Units 3 and 4 reflecting a revision to Georgia Power Company's total project capital cost forecast resulting from a reduction in remaining expected site demobilization costs and other contractor obligations. Additionally, earnings for the nine months ended September 30, 2024 include a $14 million income tax charge related to the remeasuring of deferred tax assets associated with the previously recognized estimated probable loss on Plant Vogtle Units 3 and 4 due to a change in the State of Georgia corporate tax rate. Earnings for the three and nine months ended September 30, 2023 include a pre-tax
charge of $160 million ($120 million after tax) related to the estimated probable loss on Plant Vogtle Units 3 and 4. Further charges and/or credits may occur; however, the amount and timing are uncertain. Earnings for the three and nine months ended September 30, 2024 and 2023 also 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.

(3)

Earnings for the three and nine months ended September 30, 2023 include a pre-tax loss of $2 million ($1 million after tax) related to the sale of a natural gas storage facility at Southern Company Gas. Further impacts may result from future acquisition and disposition activities; however, the amount and timing of any such impacts are uncertain.

(4)

Earnings for the nine months ended September 30, 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.

(5)

Earnings for the nine months ended September 30, 2023 include a pre-tax charge of $38 million ($28 million after tax) for an estimated loss at Southern Company Gas associated with an Illinois Commerce Commission disallowance related to its review of the Qualifying Infrastructure Plant (QIP) capital investments by Nicor Gas for calendar year 2019 under the QIP Rider, or Investing in Illinois program. Further charges may occur; however, the amount and timing of any such charges are uncertain.

Earnings for the three and nine months ended September 30, 2024 include a pre-tax impairment loss of $36 million ($27 million after tax) associated with the discontinued development of a multi-use commercial facility at Alabama Power Company. Impairment charges may occur in the future; however, the amount and timing of any such charges are uncertain.

Southern Company

Significant Factors Impacting EPS














Three Months Ended
September


Year-To-Date
September


2024


2023


Change


2024


2023


Change

Earnings Per Share -












As Reported(1)

$ 1.40


$ 1.30


$ 0.10


$ 3.53


$ 2.86


$ 0.67













Significant Factors:












Traditional Electric Operating Companies





$ 0.18






$ 0.71

Southern Power





(0.02)






(0.02)

Southern Company Gas





(0.04)






0.07

Parent Company and Other





(0.02)






(0.08)

Increase in Shares





-






(0.01)

Total - As Reported





$ 0.10






$ 0.67














Three Months Ended
September


Year-To-Date
September

Non-GAAP Financial Measures

2024


2023


Change


2024


2023


Change

Earnings Per Share -












Excluding Items

$ 1.43


$ 1.42


$ 0.01


$ 3.56


$ 3.01


$ 0.55













Total - As Reported





$ 0.10






$ 0.67

Less:












Estimated Loss on Plants Under Construction(2)





0.12






0.11

Acquisition and Disposition Impacts(3)





-






-

Loss on Extinguishment of Debt(4)





-






-

Estimated Loss on Qualifying Infrastructure Plant(5)





-






0.03

Impairments(6)





(0.03)






(0.02)

Total - Excluding Items





$ 0.01






$ 0.55


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 $1.39 and $3.51 for the three and nine months ended September 30, 2024, respectively, and $1.29 and $2.84 for the three and nine months ended September 30, 2023, respectively.

(2)

Earnings for the nine months ended September 30, 2024 include a pre-tax credit to income of $21 million ($16 million after tax) related to the estimated probable loss on Plant Vogtle Units 3 and 4 reflecting a revision to Georgia Power Company's total project capital cost forecast resulting from a reduction in remaining expected site demobilization costs and other contractor obligations. Additionally, earnings for the nine months ended September 30, 2024 include a $14 million income tax charge related to the remeasuring of deferred tax assets associated with the previously recognized estimated probable loss on Plant Vogtle Units 3 and 4 due to a change in the State of Georgia corporate tax rate. Earnings for the three and nine months ended September 30, 2023 include a pre-tax charge of $160 million ($120 million after tax) related to the estimated probable loss on Plant Vogtle Units 3 and 4. Further charges and/or credits may occur; however, the amount and timing are uncertain. Earnings for the three and nine months ended September 30, 2024 and 2023 also 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.

(3)

Earnings for the three and nine months ended September 30, 2023 include a pre-tax loss of $2 million ($1 million after tax) related to the sale of a natural gas storage facility at Southern Company Gas. Further impacts may result from future acquisition and disposition activities; however, the amount and timing of any such impacts are uncertain.

(4)

Earnings for the nine months ended September 30, 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.

(5)

Earnings for the nine months ended September 30, 2023 include a pre-tax charge of $38 million ($28 million after tax) for an estimated loss at Southern Company Gas associated with an Illinois Commerce Commission disallowance related to its review of the Qualifying Infrastructure Plant (QIP) capital investments by Nicor Gas for calendar year 2019 under the QIP Rider, or Investing in Illinois program. Further charges may occur; however, the amount and timing of any such charges are uncertain.

(6)

Earnings for the three and nine months ended September 30, 2024 include a pre-tax impairment loss of $36 million ($27 million after tax) associated with the discontinued development of a multi-use commercial facility at Alabama Power Company. Impairment charges may occur in the future; however, the amount and timing of any such charges are uncertain.

Southern Company

EPS Earnings Analysis






Description

Three Months Ended

September

2024 vs. 2023


Year-To-Date

September

2024 vs. 2023





Retail Sales

(3)¢






Retail Revenue Impacts

32


72





Weather

(1)


19





Wholesale and Other Operating Revenues

4


10





Non-Fuel Operations and Maintenance Expenses(1)

(10)


(11)





Depreciation and Amortization

(3)


(9)





Interest Expense and Other

(7)


(13)





Income Taxes

(3)


(8)





Total Traditional Electric Operating Companies


62¢





Southern Power

(2)


(2)





Southern Company Gas

(4)


5





Parent Company and Other

(2)


(9)





Increase in Shares

-


(1)





Total Change in EPS (Excluding Items)


55¢





Estimated Loss on Plants Under Construction(2)

12


11





Acquisition and Disposition Impacts(3)

-


-





Loss on Extinguishment of Debt(4)

-


-





Estimated Loss on Qualifying Infrastructure Plant(5)

-


3





Impairments(6)

(3)


(2)





Total Change in EPS (As Reported)

10¢


67¢

See Notes on the following page.

Southern Company
EPS Earnings Analysis


Notes

(1)

Excludes gains/losses on asset sales, which are included in "Interest Expense and Other." Includes non-service cost-related benefits income.

(2)

Earnings for the nine months ended September 30, 2024 include a pre-tax credit to income of $21 million ($16 million after tax) related to the estimated probable loss on Plant Vogtle Units 3 and 4 reflecting a revision to Georgia Power Company's total project capital cost forecast resulting from a reduction in remaining expected site demobilization costs and other contractor obligations. Additionally, earnings for the nine months ended September 30, 2024 include a $14 million income tax charge related to the remeasuring of deferred tax assets associated with the previously recognized estimated probable loss on Plant Vogtle Units 3 and 4 due to a change in the State of Georgia corporate tax rate. Earnings for the three and nine months ended September 30, 2023 include a pre-tax charge of $160 million ($120 million after tax) related to the estimated probable loss on Plant Vogtle Units 3 and 4. Further charges and/or credits may occur; however, the amount and timing are uncertain. Earnings for the three and nine months ended September 30, 2024 and 2023 also 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.

(3)

Earnings for the three and nine months ended September 30, 2023 include a pre-tax loss of $2 million ($1 million after tax) related to the sale of a natural gas storage facility at Southern Company Gas. Further impacts may result from future acquisition and disposition activities; however, the amount and timing of any such impacts are uncertain.

(4)

Earnings for the nine months ended September 30, 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.

(5)

Earnings for the nine months ended September 30, 2023 include a pre-tax charge of $38 million ($28 million after tax) for an estimated loss at Southern Company Gas associated with an Illinois Commerce Commission disallowance related to its review of the Qualifying Infrastructure Plant (QIP) capital investments by Nicor Gas for calendar year 2019 under the QIP Rider, or Investing in Illinois program. Further charges may occur; however, the amount and timing of any such charges are uncertain.

(6)

Earnings for the three and nine months ended September 30, 2024 include a pre-tax impairment loss of $36 million ($27 million after tax) associated with the discontinued development of a multi-use commercial facility at Alabama Power Company. Impairment charges may occur in the future; however, the amount and timing of any such charges are uncertain.

(7) Southern Company

Consolidated Earnings

As Reported














Three Months Ended

September


Year-To-Date

September


2024


2023


Change


2024


2023


Change


(in millions)


(in millions)

Retail electric revenues:












Fuel

$ 1,179


$ 1,356


$ (177)


$ 3,250


$ 3,412


$ (162)

Non-fuel

4,187


3,783


404


10,543


9,185


1,358

Wholesale electric revenues

721


727


(6)


1,919


1,930


(11)

Other electric revenues

222


203


19


631


602


29

Natural gas revenues

682


689


(7)


3,220


3,417


(197)

Other revenues

283


222


61


820


662


158

Total operating revenues

7,274


6,980


294


20,383


19,208


1,175

Fuel and purchased power

1,395


1,574


(179)


3,843


4,056


(213)

Cost of natural gas

98


102


(4)


852


1,199


(347)

Cost of other sales

166


126


40


464


381


83

Non-fuel operations and maintenance

1,662


1,424


238


4,543


4,352


191

Depreciation and amortization

1,210


1,143


67


3,537


3,365


172

Taxes other than income taxes

375


341


34


1,155


1,076


79

Estimated loss on Plant Vogtle Units 3 and 4

-


160


(160)


(21)


160


(181)

Total operating expenses

4,906


4,870


36


14,373


14,589


(216)

Operating income

2,368


2,110


258


6,010


4,619


1,391

Allowance for equity funds used during
construction

58


66


(8)


167


200


(33)

Earnings from equity method investments

31


32


(1)


107


110


(3)

Interest expense, net of amounts capitalized

692


620


72


2,050


1,812


238

Other income (expense), net

147


141


6


450


428


22

Income taxes

377


297


80


890


492


398

Net income

1,535


1,432


103


3,794


3,053


741

Net income (loss) attributable to
noncontrolling interests

-


10


(10)


(73)


(68)


(5)

Net income attributable to Southern Company

$ 1,535


$ 1,422


$ 113


$ 3,867


$ 3,121


$ 746


Certain prior year data may have been reclassified to conform with current year presentation.

Southern Company

Kilowatt-Hour Sales and Customers


































Three Months Ended September


Year-To-Date September


2024


2023


% Change


Weather
Adjusted
% Change


2024


2023


% Change


Weather
Adjusted
% Change


(in millions)






(in millions)





Kilowatt-Hour Sales































Total Sales

56,035


55,428


1.1 %




152,461


150,157


1.5 %



















Total Retail Sales

41,893


42,364


(1.1) %


(0.4) %


114,154


110,715


3.1 %


0.6 %

Residential

14,677


15,133


(3.0) %


(1.5) %


38,442


36,458


5.4 %


(0.5) %

Commercial

14,279


14,341


(0.4) %


0.1 %


38,419


37,050


3.7 %


2.1 %

Industrial

12,803


12,751


0.4 %


0.4 %


36,889


36,791


0.3 %


0.3 %

Other

134


139


(3.5) %


(3.1) %


404


416


(2.8) %


(3.0) %

















Total Wholesale Sales

14,142


13,064


8.2 %


N/A


38,307


39,442


(2.9) %


N/A






































Period Ended September












2024


2023


% Change












(in thousands)





Regulated Utility Customers





























Total Regulated Utility Customers






8,865


8,792


0.8 %



Traditional Electric Operating Companies




4,530


4,476


1.2 %



Southern Company Gas






4,335


4,316


0.4 %



Southern Company

Financial Overview

As Reported














Three Months Ended
September


Year-To-Date

September


2024


2023


% Change


2024


2023


% Change


(in millions)




(in millions)



Southern Company -












Operating Revenues

$ 7,274


$ 6,980


4.2 %


$ 20,383


$ 19,208


6.1 %

Earnings Before Income Taxes

1,912


1,729


10.6 %


4,684


3,545


32.1 %

Net Income Available to Common

1,535


1,422


7.9 %


3,867


3,121


23.9 %













Alabama Power -












Operating Revenues

$ 2,138


$ 2,083


2.6 %


$ 5,803


$ 5,420


7.1 %

Earnings Before Income Taxes

628


644


(2.5) %


1,517


1,235


22.8 %

Net Income Available to Common

493


565


(12.7) %


1,195


1,132


5.6 %













Georgia Power -












Operating Revenues

$ 3,472


$ 3,237


7.3 %


$ 8,745


$ 7,805


12.0 %

Earnings Before Income Taxes

1,296


980


32.2 %


2,765


1,892


46.1 %

Net Income Available to Common

1,050


780


34.6 %


2,249


1,547


45.4 %













Mississippi Power -












Operating Revenues

$ 412


$ 436


(5.5) %


$ 1,118


$ 1,137


(1.7) %

Earnings Before Income Taxes

97


93


4.3 %


233


208


12.0 %

Net Income Available to Common

75


75


- %


186


173


7.5 %













Southern Power -












Operating Revenues

$ 600


$ 653


(8.1) %


$ 1,597


$ 1,686


(5.3) %

Earnings Before Income Taxes

115


149


(22.8) %


223


258


(13.6) %

Net Income Available to Common

82


100


(18.0) %


264


288


(8.3) %













Southern Company Gas -












Operating Revenues

$ 682


$ 689


(1.0) %


$ 3,220


$ 3,417


(5.8) %

Earnings Before Income Taxes

49


110


(55.5) %


739


635


16.4 %

Net Income Available to Common

38


82


(53.7) %


555


475


16.8 %


See Financial Highlights pages for discussion of certain significant items occurring during the periods

SOURCE Southern Company

For further information: Media Contact: Southern Company Media Relations, 404-506-5333 or 1-866-506-5333; Investor Relations Contact: Greg MacLeod, 404-685-4194, [email protected]