Southern Company Posts Q4 Results
Thursday, February 22nd, 2018
Southern Company 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.
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. |
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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.
