Southern Company reports first-quarter 2024 earnings

ATLANTA, May 2, 2024 /PRNewswire/ -- Southern Company today reported first-quarter earnings of $1.1 billion, or $1.03 per share, in 2024 compared with earnings of $862 million, or 79 cents per share, in the first quarter of 2023.

Excluding the items described under "Net Income – Excluding Items" in the table below, Southern Company earned $1.1 billion, or $1.03 per share, during the first quarter of 2024, compared with $867 million, or 79 cents per share, during the first quarter of 2023.

Non-GAAP Financial Measures

Three Months Ended March

Net Income – Excluding Items (in millions)

2024

2023

Net Income – As Reported

$                 1,129

$                    862

Less:



Estimated Loss on Plants Under Construction

(4)

(2)

Tax Impact

1

1

Loss on Extinguishment of Debt

(5)

Tax Impact

1

Net Income – Excluding Items

$                 1,132

$                    867

Average Shares Outstanding – (in millions)                     

1,094

1,091

Basic Earnings Per Share - Excluding Items

$                   1.03

$                   0.79



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 first quarter 2024, as compared with 2023, were higher utility revenues, partially offset by increased interest expense and depreciation and amortization.

First-quarter 2024 operating revenues were $6.6 billion, compared with $6.5 billion for the first quarter of 2023, an increase of 2.6%.

"All our businesses experienced a strong start to 2024," said Chairman, President and CEO Christopher C. Womack. "This performance was driven by a variety of factors, including investments in our state-regulated utilities, weather that was less mild than the first quarter of last year and higher weather-adjusted sales in our electric utilities' commercial customer class, a fact that speaks to strong local economies and increased usage by many existing data center customers."

"We were also pleased to announce earlier this week that Plant Vogtle Unit 4 has achieved commercial operation," added Womack. "New units 3 and 4 are now positioned to deliver more than 2,200 megawatts of reliable, carbon-free energy for decades to come. With all four units operational, Plant Vogtle is now the largest generator of clean energy in the United States. This monumental achievement is a testament not only to the commitment and perseverance of our Southern Company team, but to the hard work and dedication of thousands of American craft workers and engineers, our Plant Vogtle co-owners and enlightened regulators who championed the development of new nuclear generation." 

Southern Company's first-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 Time today, during which Womack and Chief Financial Officer Daniel S. Tucker 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 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 distribution 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, DiversityInc, Black Enterprise, J.D. Power, Fortune, Human Rights Campaign and more. To learn more, visit southerncompany.com.

Southern Company

Financial Highlights

(In Millions Except Earnings Per Share)






Three Months Ended March

Net Income – As Reported

2024


2023

  Traditional Electric Operating Companies

$                819


$                610

  Southern Power

96


102

Southern Company Gas

409


309

  Total

1,324


1,021

  Parent Company and Other

(195)


(159)

  Net Income – As Reported

$             1,129


$                862





  Basic Earnings Per Share(1)

$               1.03


$               0.79

  Average Shares Outstanding

1,094


1,091





Non-GAAP Financial Measures

Three Months Ended March

Net Income – Excluding Items

2024


2023

  Net Income – As Reported

$             1,129


$                862

Less:




Estimated Loss on Plants Under Construction(2)

(4)


(2)

Tax Impact

1


1

Loss on Extinguishment of Debt(3)


(5)

Tax Impact


1

  Net Income – Excluding Items

$             1,132


$                867





  Basic Earnings Per Share – Excluding Items

$               1.03


$               0.79




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 $1.03 and $0.79 for the three months ended March 31, 2024 and 2023, respectively.



(2)

Earnings for the three months ended March 31, 2024 and 2023 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. Additionally, further charges and/or credits related to estimated probable loss on Georgia Power Company's construction of Plant Vogtle Units 3 and 4 may occur; however, the amount and timing are uncertain.



(3)

Earnings for the three months ended March 31, 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.

 

Southern Company

Significant Factors Impacting EPS








Three Months Ended March


2024


2023


Change

Earnings Per Share –






As Reported(1)

$        1.03


$        0.79


$         0.24







  Significant Factors:






  Traditional Electric Operating Companies





$         0.19

Southern Power





(0.01)

Southern Company Gas





0.09

Parent Company and Other





(0.03)

Increase in Shares





  Total – As Reported





$         0.24








Three Months Ended March

Non-GAAP Financial Measures

2024


2023


Change

Earnings Per Share –






Excluding Items

$        1.03


$        0.79


$         0.24







  Total – As Reported





$         0.24

Less:






Estimated Loss on Plants Under Construction(2)





Loss on Extinguishment of Debt(3)





  Total – Excluding Items





$         0.24




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 $1.03 and $0.79 for the three months ended March 31, 2024 and 2023, respectively.



(2)

Earnings for the three months ended March 31, 2024 and 2023 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. Additionally, further charges and/or credits related to estimated probable loss on Georgia Power Company's construction of Plant Vogtle Units 3 and 4 may occur; however, the amount and timing are uncertain.



(3)

Earnings for the three months ended March 31, 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.

 

Southern Company

EPS Earnings Analysis

Three Months Ended March 2024 vs. March 2023



Description

Cents



Retail Sales



Retail Revenue Impacts

16



Weather

6



Wholesale and Other Operating Revenues

3



Depreciation and Amortization

(2)



Interest Expense and Other

(5)



Income Taxes

(3)



Total Traditional Electric Operating Companies

19¢



Southern Power

(1)



Southern Company Gas

9



Parent Company and Other

(3)



Total Change in EPS (Excluding Items)

24¢



Estimated Loss on Plants Under Construction(1)



Loss on Extinguishment of Debt(2)



Total Change in EPS (As Reported)

24¢




See Notes on the following page.

 

Southern Company
EPS Earnings Analysis



Notes


(1)

Earnings for the three months ended March 31, 2024 and 2023 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. Additionally, further charges and/or credits related to estimated probable loss on Georgia Power Company's construction of Plant Vogtle Units 3 and 4 may occur; however, the amount and timing are uncertain.



(2)

Earnings for the three months ended March 31, 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.

 

Southern Company

Consolidated Earnings

As Reported








Three Months Ended March


2024


2023


Change


(in millions)



Retail electric revenues:






Fuel

$     1,011


$     1,050


$         (39)

Non-fuel

2,930


2,549


381

Wholesale electric revenues

571


599


(28)

Other electric revenues

199


190


9

Natural gas revenues

1,707


1,875


(168)

Other revenues

228


217


11

Total operating revenues

6,646


6,480


166

Fuel and purchased power

1,194


1,292


(98)

Cost of natural gas

605


898


(293)

Cost of other sales

131


127


4

Non-fuel operations and maintenance

1,472


1,440


32

Depreciation and amortization

1,145


1,111


34

Taxes other than income taxes

396


394


2

Total operating expenses

4,943


5,262


(319)

Operating income

1,703


1,218


485

Allowance for equity funds used during construction

58


65


(7)

Earnings from equity method investments

45


48


(3)

Interest expense, net of amounts capitalized

665


582


83

Other income (expense), net

153


147


6

Income taxes

223


97


126

Net income

1,071


799


272

Net loss attributable to noncontrolling interests

(58)


(63)


5

Net income attributable to Southern Company

$     1,129


$        862


$        267




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

 

Southern Company

Kilowatt-Hour Sales and Customers


















Three Months Ended March


2024


2023


% Change


Weather
Adjusted
% Change


(in millions)





Kilowatt-Hour Sales
















Total Sales

46,529


46,725


(0.4) %











Total Retail Sales

35,254


33,382


5.6 %


1.7 %

Residential

11,876


10,630


11.7 %


1.0 %

Commercial

11,474


10,883


5.4 %


3.8 %

Industrial

11,768


11,724


0.4 %


0.4 %

Other

136


145


(6.5) %


(7.2) %









Total Wholesale Sales

11,275


13,343


(15.5) %


N/A


















Period Ended March




2024


2023


% Change




(in thousands)





Regulated Utility Customers
















Total Regulated Utility Customers

8,900


8,824


0.9 %



Traditional Electric Operating Companies

4,502


4,449


1.2 %



Southern Company Gas

4,398


4,375


0.5 %



 

Southern Company

Financial Overview

As Reported








Three Months Ended March


2024


2023


% Change


(in millions)



Southern Company –






Operating Revenues

$      6,646


$      6,480


2.6 %

Earnings Before Income Taxes

1,294


896


44.4 %

Net Income Available to Common

1,129


862


31.0 %







Alabama Power –






Operating Revenues

$      1,791


$      1,647


8.7 %

Earnings Before Income Taxes

418


253


65.2 %

Net Income Available to Common

333


255


30.6 %







Georgia Power –






Operating Revenues

$      2,398


$      2,176


10.2 %

Earnings Before Income Taxes

516


349


47.9 %

Net Income Available to Common

437


296


47.6 %







Mississippi Power –






Operating Revenues

$         342


$         390


(12.3) %

Earnings Before Income Taxes

60


71


(15.5) %

Net Income Available to Common

50


58


(13.8) %







Southern Power –






Operating Revenues

$         473


$         508


(6.9) %

Earnings Before Income Taxes

24


32


(25.0) %

Net Income Available to Common

96


102


(5.9) %







Southern Company Gas –






Operating Revenues

$      1,707


$      1,875


(9.0) %

Earnings Before Income Taxes

547


412


32.8 %

Net Income Available to Common

409


309


32.4 %




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, southerncompany.com; Investor Relations Contact: Scott Gammill, 404-506-0901, sagammil@southernco.com