ATLANTA, Aug. 2, 2017 /PRNewswire/ -- Southern Company today reported a second quarter 2017 loss of $1.38 billion, or $1.38 per share, compared with earnings of $623 million, or 67 cents per share, in the second quarter of 2016. For the six months ended June 30, 2017, Southern Company reported a loss of $723 million, or 73 cents per share, compared with earnings of $1.11 billion, or $1.20 per share, for the same period in 2016.
Excluding the items described in the "Net Income – Excluding Items" table below, Southern Company earned $728 million, or 73 cents per share, during the second quarter of 2017, compared with $704 million, or 75 cents per share, during the second quarter of 2016. For the six months ended June 30, 2017, excluding these items, Southern Company earned $1.38 billion, or $1.39 per share, compared with earnings of $1.24 billion, or $1.34 per share, for the same period in 2016.
|
Non-GAAP Financial Measures |
Three Months Ended June |
Year-to-Date June | |||
|
Net Income - Excluding Items (in millions) |
2017 |
2016 |
2017 |
2016 | |
|
Net Income (Loss) - As Reported |
$(1,381) |
$623 |
$(723) |
$1,112 | |
|
Estimated Loss on Kemper IGCC |
3,012 |
81 |
3,120 |
134 | |
|
Tax Impact |
(896) |
(31) |
(937) |
(51) | |
|
Loss on Plant Scherer Unit 3 |
- |
- |
33 |
- | |
|
Tax Impact |
- |
- |
(13) |
- | |
|
Acquisition and Integration Costs |
9 |
44 |
13 |
65 | |
|
Tax Impact |
(4) |
(13) |
(5) |
(20) | |
|
Wholesale Gas Services |
28 |
- |
(86) |
- | |
|
Tax Impact |
(11) |
- |
35 |
- | |
|
Earnings Guidance Comparability Item: |
|||||
|
Equity Return Related to Kemper IGCC Schedule Extension |
(24) |
- |
(47) |
- | |
|
Tax Impact |
(5) |
- |
(9) |
- | |
|
Net Income – Excluding Items |
$728 |
$704 |
$1,381 |
$1,240 | |
|
Average Shares Outstanding – (in millions) |
998 |
934 |
996 |
925 | |
|
Basic Earnings Per Share – Excluding Items |
$0.73 |
$0.75 |
$1.39 |
$1.34 | |
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 second quarter 2017 were positively influenced by Southern Company Gas, which was acquired on July 1, 2016 and retail revenue effects at Southern Company's traditional electric operating companies. Earnings were negatively influenced by mild weather, increased interest expense and share issuances.
"Our premier state-regulated electric and gas operating companies performed well during the second quarter," said Chairman, President and CEO Thomas A. Fanning. "This consistency in our core operations has been a hallmark of the Southern Company system and reflects our long-standing commitment to keep customers at the center of all we do as we continue to deliver safe, clean, reliable and affordable energy to the constituents we are privileged to serve."
Second quarter 2017 operating revenues were $5.43 billion, compared with $4.46 billion for the second quarter of 2016, an increase of 21.8 percent. Southern Company Gas accounted for $716 million of the increase in operating revenues for the second quarter of 2017. For the six months ended June 30, 2017, operating revenues were $11.20 billion, compared with $8.45 billion, an increase of 32.6 percent. Southern Company Gas accounted for $2.28 billion of the increase in operating revenues for the six months ended June 30, 2017.
Southern Company's second 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 |
Year-to-Date | ||||||||||||||
|
Net Income (Loss)–As Reported (See Notes) |
2017 |
2016 |
2017 |
2016 | |||||||||||
|
Traditional Electric Operating Companies |
$ |
(1,442) |
$ |
599 |
$ |
(1,010) |
$ |
1,064 |
|||||||
|
Southern Power |
82 |
89 |
151 |
139 |
|||||||||||
|
Southern Company Gas1 |
49 |
— |
288 |
— |
|||||||||||
|
Total |
(1,311) |
688 |
(571) |
1,203 |
|||||||||||
|
Parent Company and Other |
(70) |
(65) |
(152) |
(91) |
|||||||||||
|
Net Income (Loss)–As Reported |
$ |
(1,381) |
$ |
623 |
$ |
(723) |
$ |
1,112 |
|||||||
|
Basic Earnings (Loss) Per Share2 |
$ |
(1.38) |
$ |
0.67 |
$ |
(0.73) |
$ |
1.20 |
|||||||
|
Average Shares Outstanding (in millions) |
998 |
934 |
996 |
925 |
|||||||||||
|
End of Period Shares Outstanding (in millions) |
999 |
942 |
|||||||||||||
|
Non-GAAP Financial Measures |
Three Months Ended |
Year-to-Date | |||||||||||||
|
Net Income–Excluding Items (See Notes) |
2017 |
2016 |
2017 |
2016 | |||||||||||
|
Net Income (Loss)–As Reported |
$ |
(1,381) |
$ |
623 |
$ |
(723) |
$ |
1,112 |
|||||||
|
Estimated Loss on Kemper IGCC3 |
3,012 |
81 |
3,120 |
134 |
|||||||||||
|
Tax Impact |
(896) |
(31) |
(937) |
(51) |
|||||||||||
|
Loss on Plant Scherer Unit 34 |
— |
— |
33 |
— |
|||||||||||
|
Tax Impact |
— |
— |
(13) |
— |
|||||||||||
|
Acquisition and Integration Costs5 |
9 |
44 |
13 |
65 |
|||||||||||
|
Tax Impact |
(4) |
(13) |
(5) |
(20) |
|||||||||||
|
Wholesale Gas Services6 |
28 |
— |
(86) |
— |
|||||||||||
|
Tax Impact |
(11) |
— |
35 |
— |
|||||||||||
|
Earnings Guidance Comparability Item: |
|||||||||||||||
|
Equity Return Related to Kemper IGCC Schedule Extension7 |
(24) |
— |
(47) |
— |
|||||||||||
|
Tax Impact |
(5) |
— |
(9) |
— |
|||||||||||
|
Net Income–Excluding Items |
$ |
728 |
$ |
704 |
$ |
1,381 |
$ |
1,240 |
|||||||
|
Basic Earnings Per Share–Excluding Items |
$ |
0.73 |
$ |
0.75 |
$ |
1.39 |
$ |
1.34 |
|||||||
|
- 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 $11.3 million and $15.8 million for the three and six months ended June 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 acquisition debt financing costs ($0.03 per share for the three and six months ended June 30, 2016) related to the acquisition of Southern Company Gas. This item was not contemplated in Southern Company's February 2016 guidance and was excluded in the previously reported periods through December 31, 2016. | ||||||||
|
(1) On July 1, 2016, Southern Company completed the acquisition of Southern Company Gas. | ||||||||
|
(2) For the three and six months ended June 30, 2017 and 2016, dilution does not change basic earnings per share by more than 1 cent and is not material. | ||||||||
|
(3) Earnings for the three and six months ended June 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 six months ended June 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 six months ended June 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 six months ended June 30, 2017 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 three and six months ended June 30, 2017 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 as of 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. As a result, Southern Company believes presentation of earnings per share excluding these amounts provides investors with information comparable to the 2017 guidance. Management also uses such measures to evaluate Southern Company's performance in 2017. | ||||||||
|
Southern Company | ||||||||||||||||||||||||
|
Significant Factors Impacting EPS | ||||||||||||||||||||||||
|
Three Months Ended |
Year-to-Date | |||||||||||||||||||||||
|
2017 |
2016 |
Change |
2017 |
2016 |
Change | |||||||||||||||||||
|
Earnings (Loss) Per Share– |
||||||||||||||||||||||||
|
As Reported1 (See Notes) |
$ |
(1.38) |
$ |
0.67 |
$ |
(2.05) |
$ |
(0.73) |
$ |
1.20 |
$ |
(1.93) |
||||||||||||
|
Significant Factors: |
||||||||||||||||||||||||
|
Traditional Electric Operating Companies |
$ |
(2.18) |
$ |
(2.24) |
||||||||||||||||||||
|
Southern Power |
(0.01) |
0.01 |
||||||||||||||||||||||
|
Southern Company Gas2 |
0.05 |
0.31 |
||||||||||||||||||||||
|
Parent Company and Other |
— |
(0.07) |
||||||||||||||||||||||
|
Increase in Shares3 |
0.09 |
0.06 |
||||||||||||||||||||||
|
Total–As Reported |
$ |
(2.05) |
$ |
(1.93) |
||||||||||||||||||||
|
Three Months Ended |
Year-to-Date | |||||||||||||||||||||||
|
Non-GAAP Financial Measures |
2017 |
2016 |
Change |
2017 |
2016 |
Change | ||||||||||||||||||
|
Earnings Per Share– |
||||||||||||||||||||||||
|
Excluding Items (See Notes) |
$ |
0.73 |
$ |
0.75 |
$ |
(0.02) |
$ |
1.39 |
$ |
1.34 |
$ |
0.05 |
||||||||||||
|
Total–As Reported |
$ |
(2.05) |
$ |
(1.93) |
||||||||||||||||||||
|
Kemper IGCC Impacts4 |
2.04 |
2.05 |
||||||||||||||||||||||
|
Loss on Plant Scherer Unit 35 |
— |
0.02 |
||||||||||||||||||||||
|
Acquisition and Integration Costs6 |
(0.03) |
(0.04) |
||||||||||||||||||||||
|
Wholesale Gas Services7 |
0.02 |
(0.05) |
||||||||||||||||||||||
|
Total–Excluding Items |
$ |
(0.02) |
$ |
0.05 |
||||||||||||||||||||
|
- 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 $11.3 million and $15.8 million for the three and six months ended June 30, 2016, respectively. | ||||||||||||
|
- For comparative purposes, Basic Earnings Per Share - Excluding Items in prior year periods does not reflect any adjustments to exclude acquisition debt financing costs ($0.03 per share for the three and six months ended June 30, 2016) related to the acquisition of Southern Company Gas. This item was not contemplated in Southern Company's February 2016 guidance and was excluded in the previously reported periods through December 31, 2016. | ||||||||||||
|
(1) For the three and six months ended June 30, 2017 and 2016, dilution does not change basic earnings per share by more than 1 cent and is not material. | ||||||||||||
|
(2) On July 1, 2016, Southern Company completed the acquisition of Southern Company Gas. | ||||||||||||
|
(3) Per share changes for each of the business segments reported in this table are calculated based on average shares outstanding as of June 30, 2016. The per share change attributable to Increase in Shares reflects the impact of the increase in average shares outstanding from June 30, 2016 through June 30, 2017. Because Southern Company reported a net loss for the three and six month periods ended June 30, 2017, the dilutive impact of the increase of average shares outstanding for these periods served to reduce the net loss per share. | ||||||||||||
|
(4) Earnings for the three and six months ended June 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 and six months ended June 30, 2017 also 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 as of 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. As a result, Southern Company believes presentation of earnings per share excluding these amounts provides investors with information comparable to the 2017 guidance. Management also uses such measures to evaluate Southern Company's performance in 2017. | ||||||||||||
|
(5) Earnings for the six months ended June 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. | ||||||||||||
|
(6) Earnings for the three and six months ended June 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. | ||||||||||||
|
(7) Earnings for the three and six months ended June 30, 2017 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 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 June 2017 vs. June 2016 | |
|
Dollars |
Description |
|
$(0.01) |
Retail Sales |
|
0.05 |
Retail Revenue Impacts |
|
(0.03) |
Weather |
|
(0.01) |
Wholesale Operations |
|
0.01 |
Non-Fuel O&M |
|
(0.01) |
Other Income and Deductions |
|
(0.01) |
Interest Expense |
|
0.01 |
Income Taxes |
|
$— |
Total Traditional Electric Operating Companies |
|
(0.01) |
Southern Power |
|
0.07 |
Southern Company Gas1 |
|
(0.03) |
Parent and Other |
|
(0.05) |
Increase in Shares |
|
$(0.02) |
Total Change in EPS (Excluding Items) |
|
(2.04) |
Kemper IGCC Impacts2 |
|
0.03 |
Acquisition and Integration Costs3 |
|
(0.02) |
Wholesale Gas Services4 |
|
$(2.05) |
Total Change in EPS (As Reported) |
|
- See Notes on the following page. | |
|
Southern Company | |
|
EPS Earnings Analysis | |
|
Three Months Ended June 2017 vs. June 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 $11.3 million for the three months ended June 30, 2016. | |
|
- For comparative purposes, Basic Earnings Per Share - Excluding Items in the prior year period does not reflect any adjustments to exclude acquisition debt financing costs ($0.03 per share for the three months ended June 30, 2016) related to the acquisition of Southern Company Gas. This item was not contemplated in Southern Company's February 2016 guidance and was excluded in the previously reported 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 June 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 June 30, 2017 also 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 as of 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. As a result, Southern Company believes presentation of earnings per share excluding these amounts provides investors with information comparable to the 2017 guidance. Management also uses such measures to evaluate Southern Company's performance in 2017. | |
|
(3) Earnings for the three months ended June 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 June 30, 2017 include the Wholesale Gas Services business of Southern Company Gas in future periods. 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 June |
Year-to-Date June | |||||||||||||||||||||||
|
2017 |
2016 |
Change |
2017 |
2016 |
Change | |||||||||||||||||||
|
Income Account- |
||||||||||||||||||||||||
|
Retail Electric Revenues- |
||||||||||||||||||||||||
|
Fuel |
$ |
1,016 |
$ |
998 |
$ |
18 |
$ |
1,944 |
$ |
1,873 |
$ |
71 |
||||||||||||
|
Non-Fuel |
2,761 |
2,750 |
11 |
5,227 |
5,251 |
(24) |
||||||||||||||||||
|
Wholesale Electric Revenues |
618 |
446 |
172 |
1,149 |
842 |
307 |
||||||||||||||||||
|
Other Electric Revenues |
167 |
166 |
1 |
342 |
348 |
(6) |
||||||||||||||||||
|
Natural Gas Revenues |
684 |
— |
684 |
2,214 |
— |
2,214 |
||||||||||||||||||
|
Other Revenues |
184 |
99 |
85 |
326 |
137 |
189 |
||||||||||||||||||
|
Total Revenues |
5,430 |
4,459 |
971 |
11,202 |
8,451 |
2,751 |
||||||||||||||||||
|
Fuel and Purchased Power |
1,303 |
1,212 |
91 |
2,478 |
2,288 |
190 |
||||||||||||||||||
|
Cost of Natural Gas |
232 |
— |
232 |
951 |
— |
951 |
||||||||||||||||||
|
Cost of Other Sales |
114 |
58 |
56 |
203 |
77 |
126 |
||||||||||||||||||
|
Non-Fuel O & M |
1,301 |
1,099 |
202 |
2,631 |
2,206 |
425 |
||||||||||||||||||
|
Depreciation and Amortization |
754 |
569 |
185 |
1,469 |
1,110 |
359 |
||||||||||||||||||
|
Taxes Other Than Income Taxes |
308 |
255 |
53 |
638 |
511 |
127 |
||||||||||||||||||
|
Estimated Loss on Kemper IGCC |
3,012 |
81 |
2,931 |
3,120 |
134 |
2,986 |
||||||||||||||||||
|
Total Operating Expenses |
7,024 |
3,274 |
3,750 |
11,490 |
6,326 |
5,164 |
||||||||||||||||||
|
Operating Income |
(1,594) |
1,185 |
(2,779) |
(288) |
2,125 |
(2,413) |
||||||||||||||||||
|
Allowance for Equity Funds Used During Construction |
58 |
45 |
13 |
115 |
98 |
17 |
||||||||||||||||||
|
Earnings from Equity Method Investments |
28 |
(1) |
29 |
67 |
(1) |
68 |
||||||||||||||||||
|
Interest Expense, Net of Amounts Capitalized |
424 |
293 |
131 |
840 |
539 |
301 |
||||||||||||||||||
|
Other Income (Expense), net |
(3) |
(28) |
25 |
(11) |
(56) |
45 |
||||||||||||||||||
|
Income Taxes |
(587) |
261 |
(848) |
(273) |
479 |
(752) |
||||||||||||||||||
|
Net Income (Loss) |
(1,348) |
647 |
(1,995) |
(684) |
1,148 |
(1,832) |
||||||||||||||||||
|
Less: |
||||||||||||||||||||||||
|
Dividends on Preferred and Preference Stock of Subsidiaries |
11 |
12 |
(1) |
22 |
23 |
(1) |
||||||||||||||||||
|
Net Income (Loss) Attributable to Noncontrolling Interests |
22 |
12 |
10 |
17 |
13 |
4 |
||||||||||||||||||
|
NET INCOME (LOSS) ATTRIBUTABLE TO SOUTHERN COMPANY |
$ |
(1,381) |
$ |
623 |
$ |
(2,004) |
$ |
(723) |
$ |
1,112 |
$ |
(1,835) |
||||||||||||
|
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 $11.3 million and $15.8 million for the three and six months ended June 30, 2016, respectively. | ||||||||||||||||||||||||
|
Southern Company | ||||||||||||||||||||||||
|
Kilowatt-Hour Sales and Customers | ||||||||||||||||||||||||
|
(In Millions of KWHs) | ||||||||||||||||||||||||
|
Three Months Ended June |
Year-to-Date June | |||||||||||||||||||||||
|
2017 |
2016 |
Change |
Weather Adjusted Change |
2017 |
2016 |
Change |
Weather Adjusted Change | |||||||||||||||||
|
Kilowatt-Hour Sales- |
||||||||||||||||||||||||
|
Total Sales |
50,665 |
47,572 |
6.5 |
% |
96,358 |
93,048 |
3.6 |
% |
||||||||||||||||
|
Total Retail Sales- |
38,849 |
39,426 |
(1.5) |
% |
(0.4) |
% |
74,353 |
77,465 |
(4.0) |
% |
(0.8) |
% | ||||||||||||
|
Residential |
12,087 |
12,443 |
(2.9) |
% |
(0.4) |
% |
23,003 |
25,045 |
(8.2) |
% |
0.2 |
% | ||||||||||||
|
Commercial |
13,271 |
13,381 |
(0.8) |
% |
— |
% |
25,038 |
25,704 |
(2.6) |
% |
(0.9) |
% | ||||||||||||
|
Industrial |
13,280 |
13,382 |
(0.8) |
% |
(0.8) |
% |
25,886 |
26,270 |
(1.5) |
% |
(1.5) |
% | ||||||||||||
|
Other |
211 |
220 |
(4.2) |
% |
(4.0) |
% |
426 |
446 |
(4.6) |
% |
(4.4) |
% | ||||||||||||
|
Total Wholesale Sales |
11,816 |
8,146 |
45.1 |
% |
N/A |
22,005 |
15,583 |
41.2 |
% |
N/A | ||||||||||||||
|
(In Thousands of Customers) | ||||||||||||||||||||||||
|
Period Ended June |
||||||||||||||||||||||||
|
2017 |
20161 |
Change |
||||||||||||||||||||||
|
Regulated Utility Customers- |
||||||||||||||||||||||||
|
Total Utility Customers- |
9,194 |
9,119 |
0.8 |
% |
||||||||||||||||||||
|
Total Traditional Electric |
4,621 |
4,575 |
1.0 |
% |
||||||||||||||||||||
|
Southern Company Gas |
4,573 |
4,544 |
0.6 |
% |
||||||||||||||||||||
|
Notes |
||||||||||||||||||||||||
|
(1) Southern Company's acquisition of Southern Company Gas was completed on July 1, 2016. June 2016 customers are shown on a pro forma basis for comparative purposes. | ||||||||||||||||||||||||
|
Southern Company | ||||||||||||||||||||||
|
Financial Overview As Reported | ||||||||||||||||||||||
|
(In Millions of Dollars) | ||||||||||||||||||||||
|
Three Months Ended June |
Year-to-Date June | |||||||||||||||||||||
|
2017 |
2016 |
% Change |
2017 |
2016 |
% Change | |||||||||||||||||
|
Southern Company – |
||||||||||||||||||||||
|
Operating Revenues |
$ |
5,430 |
$ |
4,459 |
21.8 |
% |
$ |
11,202 |
$ |
8,451 |
32.6 |
% | ||||||||||
|
Earnings (Loss) Before Income Taxes |
(1,935) |
908 |
N/M |
(957) |
1,627 |
N/M | ||||||||||||||||
|
Net Income (Loss) Available to Common |
(1,381) |
623 |
N/M |
(723) |
1,112 |
N/M | ||||||||||||||||
|
Alabama Power – |
||||||||||||||||||||||
|
Operating Revenues |
$ |
1,484 |
$ |
1,444 |
2.8 |
% |
$ |
2,866 |
$ |
2,776 |
3.2 |
% | ||||||||||
|
Earnings Before Income Taxes |
386 |
358 |
7.8 |
% |
689 |
621 |
11.0 |
% | ||||||||||||||
|
Net Income Available to Common |
230 |
213 |
8.0 |
% |
403 |
370 |
8.9 |
% | ||||||||||||||
|
Georgia Power – |
||||||||||||||||||||||
|
Operating Revenues |
$ |
2,048 |
$ |
2,051 |
(0.1) |
% |
$ |
3,880 |
$ |
3,923 |
(1.1) |
% | ||||||||||
|
Earnings Before Income Taxes |
551 |
565 |
(2.5) |
% |
971 |
998 |
(2.7) |
% | ||||||||||||||
|
Net Income Available to Common |
347 |
349 |
(0.6) |
% |
607 |
618 |
(1.8) |
% | ||||||||||||||
|
Gulf Power – |
||||||||||||||||||||||
|
Operating Revenues |
$ |
357 |
$ |
365 |
(2.2) |
% |
$ |
707 |
$ |
700 |
1.0 |
% | ||||||||||
|
Earnings Before Income Taxes |
61 |
61 |
— |
% |
95 |
112 |
(15.2) |
% | ||||||||||||||
|
Net Income Available to Common |
35 |
34 |
2.9 |
% |
53 |
63 |
(15.9) |
% | ||||||||||||||
|
Mississippi Power – |
||||||||||||||||||||||
|
Operating Revenues |
$ |
303 |
$ |
277 |
9.4 |
% |
$ |
575 |
$ |
533 |
7.9 |
% | ||||||||||
|
Earnings (Loss) Before Income Taxes |
(2,934) |
(14) |
N/M |
(2,981) |
(13) |
N/M | ||||||||||||||||
|
Net Income (Loss) Available to Common |
(2,054) |
2 |
N/M |
(2,074) |
13 |
N/M | ||||||||||||||||
|
Southern Power – |
||||||||||||||||||||||
|
Operating Revenues |
$ |
529 |
$ |
373 |
41.8 |
% |
$ |
979 |
$ |
688 |
42.3 |
% | ||||||||||
|
Earnings Before Income Taxes |
66 |
60 |
10.0 |
% |
78 |
87 |
(10.3) |
% | ||||||||||||||
|
Net Income Available to Common |
82 |
89 |
(7.9) |
% |
151 |
139 |
8.6 |
% | ||||||||||||||
|
Southern Company Gas1 – |
||||||||||||||||||||||
|
Operating Revenues |
$ |
716 |
$ |
— |
N/A |
$ |
2,276 |
$ |
— |
N/A | ||||||||||||
|
Earnings Before Income Taxes |
80 |
— |
N/A |
468 |
— |
N/A | ||||||||||||||||
|
Net Income Available to Common |
49 |
— |
N/A |
288 |
— |
N/A | ||||||||||||||||
|
N/M - not meaningful |
||||||||||||||||||||||
|
N/A - not applicable |
||||||||||||||||||||||
|
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 $11.3 million and $15.8 million for the three and six months ended June 30, 2016, respectively. | ||||||||||||||||||||||
|
(1) On July 1, 2016, Southern Company completed the acquisition of Southern Company Gas. | ||||||||||||||||||||||
SOURCE Southern Company