Yahoo Finance Southern Company Met Earnings Estimates but Missed on Revenues
Southern Company’s 4Q15 Revenues Fell 10% on Warmer Weather
4Q15 earnings
Southern Company (SO) reported its fourth quarter results on February 3, 2016. For the fourth quarter, Southern Company reported earnings of $403 million, or $0.44 per share, against $343 million, or $0.38 per share, in the fourth quarter of last year.
Earnings in the fourth quarter were positively impacted due to revenue growth in SO’s traditional operating companies but partially offset due to milder weather. On the other hand, earnings from wholesale business were impacted due to the addition of renewables (PBW) projects.
Performance drivers
4Q15 was warmer compared to 4Q14. As a result, kilowatt-hour sales to retail customers in 4Q15 fell by 5.7% in Southern Company’s operational areas compared to 4Q14. All customer categories experienced lower sales in 4Q15 due to milder weather compared to 4Q14.
For the full year 2015, total energy sales decreased 1.8% compared with 2014. The weakening demand growth of energy is a major concern for utilities in the US. The energy efficiency programs and adverse weather conditions are expected to further dent the demand for energy.
For the full year 2015, Southern Company earned $2.6 billion, or $2.89 per share, compared to $2.5 billion, or $2.80 per share, in 2014. Southern Company’s earnings in 2015 grew by more than 4% on a yearly basis. The earnings were boosted by residential and commercial sales growth, which was partially offset by higher operations and maintenance costs.
Utility giant NextEra Energy (NEE) reported its 4Q15 earnings last week. It posted stellar growth influenced by solid contribution from Florida Power and Light. Dominion Resources’ (D) performance in 4Q15 was hampered by adverse weather conditions. Duke Energy (DUK) is to report 4Q15 earnings on February 18.
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