Southern Company reports third-quarter 2023 earnings

Southern Company today reported third-quarter earnings of $1.4 billion, or $1.30 per share, in 2023 compared with earnings of $1.5 billion, or $1.36 per share, in the third quarter of 2022.  For the nine months ended September 30, 2023, Southern Company reported earnings of $3.1 billion, or $2.86 per share, compared with $3.6 billion, or $3.38 per share, for the same period in 2022.

Excluding the items described under “Net Income – Excluding Items” in the table below, Southern Company earned $1.5 billion, or $1.42 per share, during the third quarter of 2023, compared with $1.4 billion, or $1.31 per share, during the third quarter of 2022.  For the nine months ended September 30, 2023, excluding these items, Southern Company earned $3.3 billion, or $3.01 per share, compared with $3.6 billion, or $3.35 per share, for the same period in 2022.

 

Non-GAAP Financial Measures		Three Months Ended September			Year-to-Date September
Net Income - Excluding Items (in millions)		2023	2022		2023	2022
Net Income - As Reported		$1,422	$1,472		$3,121	$3,611
Less:
Estimated Loss on Plants Under Construction		(166)	62		(171)	7
Tax Impact		42	(16)		43	(2)
Acquisition and Disposition Impacts		(2)	14		(2)	19
Tax Impact		1	-		1	(2)
Loss on Extinguishment of Debt		-	-		(5)	-
Tax Impact		-	-		1	-
Estimated Loss on Qualifying Infrastructure Plant		-	-		(38)	-
Tax Impact		-	-		10	-
Net Income – Excluding Items		$1,547	$1,412		$3,282	$3,589
Average Shares Outstanding – (in millions)		1,092	1,082		1,092	1,070
Basic Earnings Per Share – Excluding Items		$1.42	$1.31		$3.01	$3.35

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

Adjusted earnings drivers for the third quarter 2023, as compared with the same period in 2022, were warmer than normal weather at the company’s regulated electric utilities, changes in rates and pricing, and lower income taxes and non-fuel operations and maintenance costs, partially offset by increased depreciation and amortization.

Third-quarter 2023 operating revenues were $7.0 billion, compared with $8.4 billion for the third quarter of 2022, a decrease of 16.7 percent.  For the nine months ended September 30, 2023, operating revenues were $19.2 billion, compared with $22.2 billion for the corresponding period in 2022, a decrease of 13.6 percent.  These decreases were primarily due to lower fuel costs in 2023.

“Our premier state-regulated electric and gas utilities continued to perform well during the third quarter, and Southern Power made strategic additions to its portfolio of renewable generation assets,” said President and CEO Christopher C. Womack.

“It is also significant to note that the accelerated economic development we have seen in the Southeast over the last couple of years has contributed to a projected growth in electricity usage that is significantly larger than historic levels,” added Womack. “For example, Georgia Power has filed an updated Integrated Resource Plan with the Georgia Public Service Commission, proposing additional investment in our region’s energy future to provide energy solutions that are expected to benefit Georgia customers and communities for generations to come.”

Southern Company’s third-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 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 http://investor.southerncompany.com. A replay of the webcast will be available on the site for 12 months.