Southern Co. Profit Rises, Helped by Solar Investments

By Lisa Beilfuss 

Southern Co., one of the biggest utilities in the U.S., said profit jumped in the latest quarter, thanks to growth in the company's solar investments and higher retail revenue.

The Atlanta company, which 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, said solar investments in its Southern Power unit, in addition to higher retail revenue in the company's traditional operating segments, drove results.

Meanwhile, Southern said third-quarter earnings were significantly affected 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 delayed and which was dealt a blow in May when South Mississippi Electric Power Association, which furnishes power to smaller utilities in the state, pulled its investment.

Kemper shaved 11 cents off per-share earnings in the latest quarter, Southern said. The company has said that it expects an in-service date for Kemper in the first half of 2016.

For the quarter, Southern reported a profit of $959 million, or $1.05 a share, up from $718 million, or 80 cents, a year earlier. Excluding items, per-share earnings rose to $1.17 from $1.09. Operating revenue edged 1.2% higher to $5.4 billion.

Analysts polled by Thomson Reuters projected per-share earnings of $1.16 on $5.72 billion in revenue.

Shares in the company, down about 7% this year, rose 1.1% in morning trading.

Write to Lisa Beilfuss at [e-mail]

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(END) Dow Jones Newswires

October 28, 2015 11:12 ET (15:12 GMT)

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