Southern Company Reports Third-Quarter 2020 Earnings
Southern Company today reported third-quarter 2020 earnings of $1.25 billion, or $1.18 per share, compared with $1.32 billion, or $1.26 per share, in the third quarter of 2019. For the nine months ended September 30, 2020, Southern Company reported earnings of $2.73 billion, or $2.58 per share, compared with earnings of $4.30 billion, or $4.12 per share, for the same period in 2019.
Excluding the items described in the “Net Income – Excluding Items” table below, Southern Company earned $1.29 billion, or $1.22 per share, during the third quarter of 2020, compared with $1.40 billion, or $1.34 per share, during the third quarter of 2019. For the nine months ended September 30, 2020, excluding these items, Southern Company earned $2.94 billion, or $2.78 per share, compared with $2.97 billion, or $2.84 per share, for the same period in 2019.
Non-GAAP Financial Measures |
Three Months Ended September |
|
Year-to-Date September |
||
Net Income - Excluding Items (in millions) |
2020 |
2019 |
|
2020 |
2019 |
Net Income - As Reported |
$1,251 |
$1,316 |
|
$2,732 |
$4,298 |
Less: |
|
|
|
|
|
Acquisition and Disposition Impacts |
- |
(5) |
|
38 |
2,477 |
Tax Impact |
- |
(7) |
|
(16) |
(1,130) |
Estimated Loss on Plants Under Construction |
3 |
(3) |
|
(151) |
(16) |
Tax Impact |
(1) |
1 |
|
39 |
4 |
Wholesale Gas Services |
(62) |
(14) |
|
(61) |
79 |
Tax Impact |
17 |
5 |
|
16 |
(18) |
Asset Impairment |
- |
(92) |
|
(154) |
(92) |
Tax Impact |
- |
27 |
|
80 |
27 |
Net Income – Excluding Items |
$1,294 |
$1,404 |
|
$2,941 |
$2,967 |
Average Shares Outstanding – (in millions) |
1,058 |
1,048 |
|
1,058 |
1,043 |
Basic Earnings Per Share – Excluding Items |
$1.22 |
$1.34 |
|
$2.78 |
$2.84 |
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 third quarter 2020 were negatively impacted by a decline in sales related to the COVID-19 pandemic and milder weather, largely offset by diligent cost control and constructive state regulatory actions completed in 2019 at the company’s utilities.
“During the third quarter and much of this year, unprecedented circumstances, including the COVID-19 pandemic and an exceptionally active storm season, have confronted our customers and communities. Employees throughout the Southern Company system have responded by continuing to deliver industry-leading reliability and service to those customers we are privileged to serve,” said Chairman, President and CEO Thomas A. Fanning. “Our priorities moving forward include maintaining best-in-class service levels and cost discipline at our utilities while continuing to work diligently to bring Vogtle Units 3 and 4 online by the November 2021 and November 2022 regulatory-approved in-service dates.”
Third-quarter 2020 operating revenues were $5.6 billion, compared with $6.0 billion for the third quarter of 2019, a decrease of 6.3 percent. For the nine months ended September 30, 2020, operating revenues were $15.3 billion, compared with $16.5 billion for the corresponding period in 2019, a decrease of 7.6 percent. These decreases were primarily due to lower fuel costs and a sales decline resulting from milder weather and COVID-19.
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 Fanning and Chief Financial Officer Andrew W. Evans 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.
