Dive Brief:
- Southern Co. reported fourth quarter earnings of 38 cents per share, compared with 48 cents in the same period a year ago, narrowly missing analysts' expectations.
- The company cited higher development costs at its combined cycle gasification project in Kemper County, saying it took an after-tax Q4 charge of $43 million related to the facility.
- For full year 2014, Southern reported earnings of $2.80/share compared to $2.71 in 2013.
Dive Insight:
The Kemper power facility began generating gas-fired power last year and the gasification portion is expected online in 2016, but the project continues to be a drag on Southern's earnings. Under development by subsidiary Mississippi Power, Southern said it took a fourth quarter after-tax charge of $43 million, or 5 cents per share, related to development of the facility.
But there was good news: earnings for the fourth quarter and full year 2014 were positively influenced by retail revenue, though the company said this was offset by increased operating and maintenance expenses. Full-year 2014 earnings were further positively influenced by closer-to-normal weather and increased customer growth compared with the full year 2013.
"Southern Company had one of its best years ever serving customers in 2014," said Southern Company Chairman, President and CEO Thomas Fanning. "We continued to lead the industry in customer satisfaction and set several all-time records for system reliability. Our commitment to providing clean, safe, reliable and affordable electricity – while making communities better off because we're there – remains the cornerstone of our business."
Southern's Q4 earnings of 38 cents narrowly missed Zacks Consensus Estimate of 39 cents per share.
