Southern Company reports fourth-quarter and full-year 2017 earnings

ATLANTA, Feb. 21, 2018 /PRNewswire/ -- Southern Company today reported fourth-quarter 2017 earnings of $496 million, or 49 cents per share, compared with earnings of $197 million, or 20 cents per share, in the fourth quarter of 2016.  Southern Company also reported full-year 2017 earnings of $842 million, or 84 cents per share, compared with earnings of $2.45 billion, or $2.57 per share, in 2016.

Southern Company

Excluding the items described in the "Net Income – Excluding Items" table below, Southern Company earned $509 million, or 51 cents per share, during the fourth quarter of 2017, compared with $295 million, or 30 cents per share, during the fourth quarter of 2016. For the full-year 2017, excluding these items, Southern Company earned $3.02 billion, or $3.02 per share, compared with earnings of $2.76 billion, or $2.90 per share, in 2016.

Non-GAAP Financial Measures

Three Months Ended December


Year-to-Date December

Net Income - Excluding Items (in millions)

2017

2016


2017

2016

Net Income - As Reported

$496

$197


$842

$2,448

Estimated Loss on Kemper IGCC

211

206


3,366

428

  Tax Impact

(25)

(79)


(975)

(164)

Loss on Plant Scherer Unit 3

-

-


33

-

  Tax Impact

-

-


(13)

-

Acquisition and Integration Costs

16

12


35

120

  Tax Impact

10

(4)


12

(38)

Wholesale Gas Services

105

(15)


57

4

  Tax Impact

(20)

4


-

(4)

Earnings Guidance Comparability Items:






Equity Return Related to Kemper IGCC

    Schedule Extension

-

(22)


(47)

(29)

       Tax Impact

-

(4)


(9)

(5)

Tax Reform

(284)

-


(284)

-

Net Income – Excluding Items

$509

$295


$3,017

$2,760

         Average Shares Outstanding – (in millions)                       

1,007

986


1,000

951

Basic Earnings Per Share – Excluding Items

$0.51

$0.30


$3.02

$2.90


NOTE: For more information regarding these non-GAAP adjustments, see the footnotes accompanying the Financial Highlights page of the earnings package.

Earnings for the fourth quarter and full year 2017 were positively influenced by retail revenue effects and lower operations and maintenance costs at Southern Company's traditional electric operating companies, and results from Southern Company Gas, partially offset by increased share issuances. Full year 2017 earnings were further negatively influenced by milder weather and lower customer usage.

"2017 was an eventful year for Southern Company, highlighted by the continued operational excellence of our premier state-regulated electric and gas utilities," said Chairman, President and CEO Thomas A. Fanning. "We experienced a banner year for electric generation, transmission and distribution, including timely responses to catastrophic weather events in our service footprint. In addition, during its first full year as a part of Southern Company, Southern Company Gas continued to deliver as expected in support of our customer-focused business model."

Fourth quarter 2017 operating revenues were $5.63 billion, compared with $5.18 billion for the fourth quarter of 2016, an increase of 8.6 percent. Operating revenues for the full year 2017 were $23.03 billion, compared with $19.90 billion in 2016, a 15.8 percent increase.  Southern Company Gas accounted for $2.27 billion of the increase in operating revenues for the full year 2017.

Southern Company's fourth quarter earnings slides with supplemental financial information, including its earnings guidance for 2018, 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 electric and gas utility customers through its subsidiaries. The company provides clean, safe, reliable and affordable energy through electric utilities in four states, natural gas distribution utilities 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, advanced carbon capture technologies, natural gas, renewables, energy efficiency and storage technology. 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. Visit our website at 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)


2017


2016


2017


2016










  Traditional Electric Operating Companies


$

(191)



$

147



$

(193)



$

2,233


  Southern Power


795



23



1,071



338


Southern Company Gas1


(60)



110



243



114


  Total


544



280



1,121



2,685


  Parent Company and Other


(48)



(83)



(279)



(237)


  Net Income–As Reported


$

496



$

197



$

842



$

2,448











  Basic Earnings Per Share2


$

0.49



$

0.20



$

0.84



$

2.57











  Average Shares Outstanding (in millions)


1,007



986



1,000



951


  End of Period Shares Outstanding (in millions)






1,008



990










Non-GAAP Financial Measures


Three Months Ended
December


Year-to-Date
December

Net Income–Excluding Items (See Notes)


2017


2016


2017


2016










  Net Income–As Reported


$

496



$

197



$

842



$

2,448


Estimated Loss on Kemper IGCC3


211



206



3,366



428


Tax Impact


(25)



(79)



(975)



(164)


Loss on Plant Scherer Unit 34






33




Tax Impact






(13)




Acquisition and Integration Costs5


16



12



35



120


Tax Impact


10



(4)



12



(38)


Wholesale Gas Services6


105



(15)



57



4


Tax Impact


(20)



4





(4)


Earnings Guidance Comparability Items:









Equity Return Related to Kemper IGCC

   Schedule Extension7




(22)



(47)



(29)


Tax Impact




(4)



(9)



(5)


Tax Reform8


(284)





(284)




  Net Income–Excluding Items


$

509



$

295



$

3,017



$

2,760











  Basic Earnings Per Share–Excluding Items


$

0.51



$

0.30



$

3.02



$

2.90











-See Notes on the following page.

 

Southern Company

Financial Highlights

Notes









- 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 ($0.10 and $0.15 per share for the three and twelve months ended December 31, 2016, respectively), (2) acquisition debt financing costs related to the acquisition of Southern Company Gas ($0.04 and $0.11 per share for the three and twelve months ended December 31, 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. ($0.01 and $0.03 per share for the three and twelve months ended December 31, 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 twelve months ended December 31, 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 twelve months ended December 31, 2017 and 2016 include charges related 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. These charges for the three and twelve months ended December 31, 2017 include $4 million of related legal expenses, recorded as operations and maintenance expenses. Additional cancellation costs of approximately $50 million to $100 million pretax are expected to occur in future periods.


(4) Earnings for the twelve months ended December 31, 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 twelve months ended December 31, 2017 and 2016 include costs related to the acquisition and integration of Southern Company Gas and earnings for the three and twelve months ended December 31, 2017 include costs related to the pending dispositions of Elizabethtown Gas and Elkton Gas. Further costs are expected to continue to occur in connection with integration activities and closing the dispositions; however, the amount and duration of such expenditures is uncertain.


(6) Earnings for the three and twelve months ended December 31, 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 twelve months ended December 31, 2017 and the three and twelve months ended December 31, 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.


(8) Earnings for the three and twelve months ended December 31, 2017 include the net tax benefit as a result of federal tax reform legislation, which was signed into law on December 22, 2017. Southern Company's 2017 earnings guidance, initially presented in October 2016, assumed no changes to tax laws. As a result, Southern Company believes presentation of earnings per share excluding this net tax benefit provides investors with information comparable to guidance. Management also uses such measures to evaluate Southern Company's performance. The impact of federal tax reform legislation ($21 million) on the Wholesale Gas Services business of Southern Company Gas is included in the adjustment above for Wholesale Gas Services.

 

Southern Company

Significant Factors Impacting EPS
















Three Months Ended
December


Year-to-Date
December



2017


2016


Change


2017


2016


Change

Earnings Per Share–













As Reported1 (See Notes)


$

0.49



$

0.20



$

0.29



$

0.84



$

2.57



$

(1.73)















  Significant Factors:













  Traditional Electric Operating Companies






$

(0.34)







$

(2.55)


Southern Power






0.78







0.77


Southern Company Gas2






(0.17)







0.13


Parent Company and Other






0.03







(0.04)


Increase in Shares






(0.01)







(0.04)


  Total–As Reported






$

0.29







$

(1.73)

















Three Months Ended
December


Year-to-Date
December

Non-GAAP Financial Measures


2017


2016


Change


2017


2016


Change

Earnings Per Share–













Excluding Items (See Notes)


$

0.51



$

0.30



$

0.21



$

3.02



$

2.90



$

0.12















  Total–As Reported






$

0.29







$

(1.73)


Kemper IGCC Impacts3






0.09







2.09


Loss on Plant Scherer Unit 34












0.02


Acquisition and Integration Costs5






0.02







(0.04)


Wholesale Gas Services6






0.09







0.06


Tax Reform7






(0.28)







(0.28)


  Total–Excluding Items






$

0.21







$

0.12















- See Notes on the following page.

 

Southern Company

Significant Factors Impacting EPS

Notes













- 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 ($0.10 and $0.15 per share for the three and twelve months ended December 31, 2016, respectively), (2) acquisition debt financing costs related to the acquisition of Southern Company Gas ($0.04 and $0.11 per share for the three and twelve months ended December 31, 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. ($0.01 and $0.03 per share for the three and twelve months ended December 31, 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 twelve months ended December 31, 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 twelve months ended December 31, 2017 and 2016 include charges related 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. These charges for the three and twelve months ended December 31, 2017 include $4 million of related legal expenses, recorded as operations and maintenance expenses. Additional cancellation costs of approximately $50 million to $100 million pretax are expected to occur in future periods.


Earnings for the twelve months ended December 31, 2017 and the three and twelve months ended December 31, 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 twelve months ended December 31, 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 twelve months ended December 31, 2017 and 2016 include costs related to the acquisition and integration of Southern Company Gas and earnings for the three and twelve months ended December 31, 2017 include costs related to the pending dispositions of Elizabethtown Gas and Elkton Gas. Further costs are expected to continue to occur in connection with integration activities and closing the dispositions; however, the amount and duration of such expenditures is uncertain.


(6) Earnings for the three and twelve months ended December 31, 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 three and twelve months ended December 31, 2017 include the net tax benefit as a result of federal tax reform legislation, which was signed into law on December 22, 2017. Southern Company's 2017 earnings guidance, initially presented in October 2016, assumed no changes to tax laws. As a result, Southern Company believes presentation of earnings per share excluding this net tax benefit provides investors with information comparable to guidance. Management also uses such measures to evaluate Southern Company's performance. The impact of federal tax reform legislation ($21 million) on the Wholesale Gas Services business of Southern Company Gas is included in the adjustment above for Wholesale Gas Services.

 

Southern Company

EPS Earnings Analysis











Description


Three Months Ended
December 
2017 vs. 2016


Year-to-Date
December 
2017 vs. 2016






Retail Sales


$

0.02


$

(0.04)






Retail Revenue Impacts


0.09


0.32






Weather


0.04


(0.18)






Wholesale Operations



(0.01)






Other Operating Revenues


0.01







Non-Fuel O&M


0.04


0.15






Purchased Power Capacity Expense



0.01






Depreciation and Amortization


(0.02)


(0.05)






Taxes Other Than Income Taxes


(0.01)







Other Income and Deductions


(0.02)


(0.08)






Income Taxes


(0.01)


(0.03)






Total Traditional Electric Operating Companies


$

0.14


$

0.09






Southern Power


0.04







Southern Company Gas1


0.04


0.31






Parent and Other



(0.12)






Increase in Shares


(0.01)


(0.16)






Total Change in EPS (Excluding Items)


$

0.21


$

0.12






Kemper IGCC Impacts2


(0.09)


(2.09)






Loss on Plant Scherer Unit 33



(0.02)






Acquisition and Integration Costs4


(0.02)


0.04






Wholesale Gas Services5


(0.09)


(0.06)






Tax Reform6


0.28


0.28






Total Change in EPS (As Reported)


$

0.29


$

(1.73)






- See Notes on the following page.

 

Southern Company

EPS Earnings Analysis

Three and Twelve Months Ended December 2017 vs. December 2016

Notes

- 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 ($0.10 and $0.15 per share for the three and twelve months ended December 31, 2016, respectively), (2) acquisition debt financing costs related to the acquisition of Southern Company Gas ($0.04 and $0.11 per share for the three and twelve months ended December 31, 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. ($0.01 and $0.03 per share for the three and twelve months ended December 31, 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) Earnings for the three and twelve months ended December 31, 2017 and 2016 include charges related 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. These charges for the three and twelve months ended December 31, 2017 include $4 million of related legal expenses, recorded as operations and maintenance expenses. Additional cancellation costs of approximately $50 million to $100 million pretax are expected to occur in future periods.


Earnings for the twelve months ended December 31, 2017 and the three and twelve months ended December 31, 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 twelve months ended December 31, 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.


(4) Earnings for the three and twelve months ended December 31, 2017 and 2016 include costs related to the acquisition and integration of Southern Company Gas and earnings for the three and twelve months ended December 31, 2017 include costs related to the pending dispositions of Elizabethtown Gas and Elkton Gas. Further costs are expected to continue to occur in connection with integration activities and closing the dispositions; however, the amount and duration of such expenditures is uncertain.


(5) Earnings for the three and twelve months ended December 31, 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.


(6) Earnings for the three and twelve months ended December 31, 2017 include the net tax benefit as a result of federal tax reform legislation, which was signed into law on December 22, 2017. Southern Company's 2017 earnings guidance, initially presented in October 2016, assumed no changes to tax laws. As a result, Southern Company believes presentation of earnings per share excluding this net tax benefit provides investors with information comparable to guidance. Management also uses such measures to evaluate Southern Company's performance. The impact of federal tax reform legislation ($21 million) on the Wholesale Gas Services business of Southern Company Gas is included in the adjustment above for Wholesale Gas Services.

 

 

 

Southern Company

Consolidated Earnings

As Reported

(In Millions of Dollars)
















Three Months Ended
December


Year-to-Date

December



2017


2016


Change


2017


2016


Change

Income Account-













Retail Electric Revenues-













Fuel


$

966



$

952



$

14



$

4,095



$

4,121



$

(26)


Non-Fuel


2,578



2,350



228



11,235



11,113



122


Wholesale Electric Revenues


559



471



88



2,426



1,926



500


Other Electric Revenues


171



169



2



681



698



(17)


Natural Gas Revenues


1,045



1,078



(33)



3,791



1,596



2,195


Other Revenues


310



161



149



803



442



361


Total Revenues


5,629



5,181



448



23,031



19,896



3,135


Fuel and Purchased Power


1,245



1,196



49



5,263



5,111



152


Cost of Natural Gas


515



480



35



1,601



613



988


Cost of Other Sales


220



99



121



513



260



253


Non-Fuel O & M


1,565



1,624



(59)



5,481



5,240



241


Depreciation and Amortization


774



697



77



3,010



2,502



508


Taxes Other Than Income Taxes


309



292



17



1,250



1,113



137


Estimated Loss on Kemper IGCC


207



206



1



3,362



428



2,934


Total Operating Expenses


4,835



4,594



241



20,480



15,267



5,213


Operating Income


794



587



207



2,551



4,629



(2,078)


Allowance for Equity Funds Used During
Construction


27



52



(25)



160



202



(42)


Earnings from Equity Method Investments


6



31



(25)



106



59



47


Interest Expense, Net of Amounts Capitalized


446



404



42



1,694



1,317



377


Other Income (Expense), net


(56)



(27)



(29)



(55)



(93)



38


Income Taxes


(175)



34



(209)



142



951



(809)


Net Income


500



205



295



926



2,529



(1,603)


Less:













Dividends on Preferred and Preference
Stock of Subsidiaries


6



11



(5)



38



45



(7)


Net Income Attributable to Noncontrolling
Interests


(2)



(3)



1



46



36



10


NET INCOME ATTRIBUTABLE TO
SOUTHERN COMPANY


$

496



$

197



$

299



$

842



$

2,448



$

(1,606)















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


As Reported


2017


2016


Change


Weather
Adjusted
Change


2017


2016


Change


Weather
Adjusted
Change


Kilowatt-Hour Sales-


















Total Sales


49,915



45,162



10.5

%




205,541



197,788



3.9

%






















Total Retail Sales-


37,705



36,209



4.1

%


1.4

%


156,507



160,745



(2.6)

%


(0.4)

%


Residential


12,034



11,080



8.6

%


0.8

%


50,536



53,337



(5.3)

%


(0.3)

%


Commercial


12,333



12,224



0.9

%


(0.1)

%


52,340



53,733



(2.6)

%


(0.9)

%


Industrial


13,130



12,690



3.5

%


3.5

%


52,785



52,792



%


%


Other


208



215



(2.9)

%


(3.1)

%


846



883



(4.0)

%


(3.9)

%




















Total Wholesale Sales


12,210



8,953



36.4

%


N/A


49,034



37,043



32.4

%


N/A
























































(In Thousands of Customers)






















Period Ended December














2017


2016


Change




Regulated Utility Customers-










Total Utility Customers-






9,263



9,179



0.9

%




Total Traditional Electric






4,640



4,593



1.0

%




Southern Company Gas






4,623



4,586



0.8

%






















 

Southern Company

Financial Overview

As Reported

(In Millions of Dollars)




Three Months Ended
December


Year-to-Date

December



2017


2016


% Change


2017


2016


% Change

Southern Company –













Operating Revenues


$

5,629



$

5,181



8.6

%


$

23,031



$

19,896



15.8

%

Earnings Before Income Taxes


325



239



36.0

%


1,068



3,480



(69.3)

%

Net Income Available to Common


496



197



151.8

%


842



2,448



(65.6)

%














Alabama Power –













Operating Revenues


$

1,433



$

1,329



7.8

%


$

6,039



$

5,889



2.5

%

Earnings Before Income Taxes


198



174



13.8

%


1,434



1,370



4.7

%

Net Income Available to Common


119



102



16.7

%


848



822



3.2

%














Georgia Power –













Operating Revenues


$

1,884



$

1,762



6.9

%


$

8,310



$

8,383



(0.9)

%

Earnings Before Income Taxes


352



163



116.0

%


2,258



2,127



6.2

%

Net Income Available to Common


227



113



100.9

%


1,414



1,330



6.3

%














Gulf Power –













Operating Revenues


$

372



$

349



6.6

%


$

1,516



$

1,485



2.1

%

Earnings Before Income Taxes


30



42



(28.6)

%


229



231



(0.9)

%

Net Income Available to Common


19



23



(17.4)

%


135



131



3.1

%














Mississippi Power –













Operating Revenues


$

271



$

277



(2.2)

%


$

1,187



$

1,163



2.1

%

Earnings (Loss) Before Income Taxes


(202)



(162)



24.7

%


(3,120)



(152)



N/M


Net Income (Loss) Available to Common


(556)



(89)



N/M



(2,590)



(50)



N/M















Southern Power –













Operating Revenues


$

478



$

389



22.9

%


$

2,075



$

1,577



31.6

%

Earnings (Loss) Before Income Taxes


(17)



(8)



112.5

%


178



179



(0.6)

%

Net Income Available to Common


795



23



N/M



1,071



338



216.9

%














Southern Company Gas1













Operating Revenues


$

1,079



$

1,109



(2.7)

%


$

3,920



$

1,652



137.3

%

Earnings Before Income Taxes


74



178



(58.4)

%


610



190



221.1

%

Net Income (Loss) Available to Common


(60)



110



(154.5)

%


243



114



113.2

%














N/M - not meaningful


























Notes


























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














(1) On July 1, 2016, Southern Company completed the acquisition of Southern Company Gas. Year-to-Date December 2016 reflects financial results for Southern Company Gas for the period July 1, 2016 through December 31, 2016.

 

SOURCE Southern Company

For further information: Media Contact: Southern Company Media Relations, 404-506-5333 or 1-866-506-5333, www.southerncompany.com; Investor Relations Contact: Aaron Abramovitz, 404-506-0780, apabramo@southernco.com

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