Southern Co (NYSE:SO) stock rose 0.78% (As on November 3, 11:46:58 AM UTC-4, Source: Google Finance) after the company beat third-quarter profit estimates, helped by higher power demand and lower operating expenses. A brutal heatwave that blanketed much of the U.S. during the quarter, with July being one of the hottest months on record, sparked a surge in electricity consumption as homes and businesses cranked up their air-conditioners. Customer additions also helped Southern Co post a 2.1% rise in total retails sales at 42,364 kilowatt-hour during the quarter. Its operating expenses fell about 21% to $4.87 billion in the three months ended Sept. 30, compared with a year earlier, primarily due to lower fuel costs. Peers CMS Energy and Xcel Energy also posted a rise in their third-quarter profits. Southern Co’s market reach extends to over 9 million customers, providing electricity services in Alabama, Georgia, and Mississippi, and gas services in Illinois, Georgia, Virginia, and Tennessee.

Despite operating in a highly regulated industry, Southern Co continues to strive for innovation and efficiency improvements. By anticipating increased power demand in summer months, the company has secured competitive advantages, particularly during intense heatwaves. Additionally, its ongoing commitment to cost reduction ensures that it remains financially stable and can deliver reliable services to its vast customer base.

SO in the third quarter of FY 23 has reported the adjusted earnings per share of $1.42, beating the analysts’ estimates for the adjusted earnings per share of $1.32, according to LSEG data. The company had reported 16.7 percent decline in the adjusted revenue growth to $6.98 billion in the third quarter of FY 23, missing the analysts’ estimates for revenue of $8.38 billion. These decreases were primarily due to lower fuel costs in 2023.

Meanwhile, Southern Power, a leading U.S. wholesale energy provider and subsidiary of Southern Company, recently acquired two solar facilities, continuing the growth of the company’s clean generating assets and increasing its overall portfolio to more than 2,740 MW of solar generation. The acquisition of the 200-megawatt Millers Branch Solar Facility in Haskell County, Texas, and the 150-megawatt South Cheyenne Solar Facility in Wyoming, is part of Southern Power’s overall 5,280 MW renewable fleet, which now consists of 30 solar and 15 wind facilities operating or under construction. Millers Branch is expected to achieve commercial operation in the fourth quarter of 2025. Construction of the South Cheyenne Solar Facility, Southern Power’s first solar facility in the state, is currently underway. The project is expected to achieve commercial operation in the first quarter of 2024.