Southern Co Reports Increased Earnings in Q4 and Full-Year 2023
Q4 Earnings: Southern Co (NYSE:SO) reported a significant turnaround with Q4 earnings of $855 million, compared to a loss in the same quarter last year.
Annual Performance: Full-year earnings increased to $4.0 billion from $3.5 billion in the previous year.
Revenue Decline: Operating revenues decreased by 14.2% in Q4 and 13.8% for the full year, primarily due to lower fuel costs.
Adjusted Earnings: Excluding items, adjusted earnings for Q4 stood at $700 million, and $4.0 billion for the full year.
Operational Milestone: Completion of Plant Vogtle Unit 3, marking a significant achievement in nuclear construction.
On February 15, 2024, Southern Co (NYSE:SO) released its 8-K filing, announcing a robust set of financial results for the fourth quarter and full year of 2023. The company, which is one of the largest utilities in the U.S., serves 9 million customers and owns a significant portfolio of electric and natural gas utilities, as well as a competitive generation company and a fiber optics network.
In the fourth quarter of 2023, Southern Co reported earnings of $855 million, or 78 cents per share, a substantial improvement from a loss of $87 million in the same period of the previous year. For the full year, earnings were $4.0 billion, or $3.64 per share, up from $3.5 billion, or $3.28 per share, in 2022. When excluding certain items, the adjusted earnings for the fourth quarter were $700 million, or 64 cents per share, and $4.0 billion, or $3.65 per share, for the full year, indicating a consistent performance excluding one-time events.
Financial Performance and Challenges
The company's financial achievements are particularly noteworthy given the operational challenges it faced, including milder weather which typically leads to reduced energy consumption. Despite these challenges, Southern Co managed to increase its utility revenues and reduce non-fuel operations and maintenance costs as well as income taxes. However, these positive drivers were partially offset by increased depreciation, amortization, and interest expenses.
Operating revenues for the fourth quarter were $6.0 billion, a decrease of 14.2 percent from the previous year's $7.0 billion. The full-year operating revenues also saw a decline, standing at $25.3 billion compared to $29.3 billion in 2022. The primary cause for the revenue decrease was attributed to lower fuel costs in 2023.
Strategic Achievements and Outlook
Chairman, President, and CEO Christopher C. Womack highlighted the completion of Plant Vogtle Unit 3 as a landmark achievement for the company, marking the first newly-constructed nuclear unit in the United States in over three decades. This accomplishment underscores Southern Co's commitment to innovation and sustainability, aligning with its goal of net zero greenhouse gas emissions by 2050.
The company's sustained success is also reflected in its corporate culture and hiring practices, which have garnered national recognition. Southern Co's strategic focus on clean, safe, reliable, and affordable energy, coupled with excellent service, continues to drive its operational and financial performance.
Investors and stakeholders can access further details on Southern Co's financial performance and business updates through the company's financial analyst call and associated webcast, which provide additional insights into the company's earnings and future prospects.
As Southern Co navigates through the complexities of the energy sector, its latest earnings report demonstrates resilience and adaptability. The company's ability to deliver strong financial results amidst unprecedented challenges positions it well for continued growth and innovation in the energy landscape.
Explore the complete 8-K earnings release (here) from Southern Co for further details.
This article first appeared on GuruFocus.
