Southern Co.'s Profit Slips on Revenue Decline, Charges
February 03 2016 - 8:26AM
Dow Jones News
By Austen Hufford
Southern Co., one of the biggest utilities in the U.S., said
profit slipped in the latest quarter, thanks to warm weather and
another hit from the company's clean coal project in
Mississippi.
An unseasonably mild December offset what the company said was
solid performance in its traditional operating companies and
success with renewable energy projects at a subsidiary.
Kilowatt-hour sales to residential customers fell 13.5% from a year
earlier, while commercial and industrial sales also fell.
Along with lower sales, two charges bit into the Atlanta
company's bottom line. Southern said earnings in the quarter were
again hit by estimated probable losses stemming from its Kemper
County project, a clean-coal power plant under construction in
Mississippi.
Southern's results of late have been hurt by the project, where
completion dates have been repeatedly pushed back. Kemper reduced
earnings by 12 cents a share in the December quarter, after shaving
7 cents off earnings in the year-ago quarter.
Southern in August struck a deal to buy natural-gas utility AGL
Resources Inc. for about $8 billion in a move to access
fast-growing gas markets from New Jersey to Florida. Charges
stemming from that purchase reduced fourth-quarter earnings by $19
million, Southern said.
Over all, Southern reported a profit of $271 million, or 30
cents a share, down from $283 million, or 31 cents, a year earlier.
Excluding the aforementioned charges, among other items, per-share
earnings rose to 44 cents from 38 cents. Operating revenue fell 10%
to $3.61 billion.
Analysts polled by Thomson Reuters projected adjusted per-share
earnings of 43 cents on $4.47 billion in revenue.
Write to Austen Hufford at austen.hufford@wsj.com
(END) Dow Jones Newswires
February 03, 2016 08:11 ET (13:11 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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