Southern Co (NYSE:SO) stock rose 2.12% (As on February 19, 11:59:10 AM UTC-4, Source: Google Finance) after the company beat estimates for fourth-quarter profit, helped by higher rates and increased power usage. The company also benefited from an increase in the number of customers, which partially offset higher non-fuel operations and maintenance costs. The company’s quarterly loss narrowed to $87 million from $215 million a year earlier.
Further, grid and fleet modernization and resilience initiatives continue to drive the projected growth profile of the electric utilities. Investment in the safety and reliability of the pipeline infrastructure drives robust projected growth for the Gas LDCs. Updated state-regulated capital investment plan reflects ~$2 billion increase over last year’s plan (excluding Vogtle 3 & 4).
SO in the fourth quarter of FY 22 has reported the adjusted earnings per share of 26 cents, beating the analysts’ estimates for the adjusted earnings per share of 24 cents, according to Refinitiv data. The company had reported the adjusted revenue of $7.1 billion in the fourth quarter of FY 22, beating the analysts’ estimates for revenue of $5.46 billion.
Moreover, retail electric sales are projected to be flat to slightly increasing with robust customer growth expected across our service territories. The company is focused on mitigating inflation, higher interest rates, and commodity price pressures; Southeast should be more resilient in the event of a recession
Meanwhile, SO has delayed the timing and boosted cost estimates for its Georgia Power utility’s share of two nuclear reactors being built in Georgia. The Vogtle plant reactors in Burke County, Georgia, already billions of dollars over budget and years behind schedule, are the only nuclear power units under construction in the United States. Southern forecast Georgia Power costs would rise to $10.593 billion, up from a prior forecast of $10.383 billion in its third quarter results in October. Southern also pushed back the in service dates for the new reactors to May or June of 2023 for Unit 3 and late in the fourth quarter of 2023 to the end of the first quarter of 2024 for Unit 4. Fanning, who will be succeeded by Georgia Power’s CEO Chris Womack in the coming months, said Unit 3 required additional fixes to pipes, a valve and flow through the reactor’s cooling pumps. He added that the company expects testing on Unit 4 to reveal more needed fixes.