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
June
|
Year-to-Date
June
|
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
June
|
Year-to-Date
June
|
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
June
|
|
Year-to-Date
June
|
|
|
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
June
|
|
Year-to-Date
June
|
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.
|
View original content with
multimedia:http://www.prnewswire.com/news-releases/southern-company-reports-second-quarter-2017-results-300498103.html
SOURCE Southern Company