Southern Company’s revenues jump 45%
Atlanta-based Southern Company (SO), one of the largest regulated utilities, reported its fourth quarter and 2016 full-year financial results on February 22, 2017. It reported total revenues of $5.2 billion for the quarter ended December 31, 2016. For the corresponding quarter in 2015, the utility reported total revenues of $3.6 billion.
Favorable weather and solid revenue contribution from Southern Company’s wholesale segment led to a 45% rise in its total revenues compared to the same period in 2015.
During the fourth quarter of 2016, Southern Company’s operational territories experienced favorable weather, which drove consumption. Total electric sales in 4Q16 rose 6.2% compared to 4Q15. Revenues from Southern Company’s wholesale segment, Southern Power, zoomed 31.1% in the reported quarter compared to 4Q15.
Due to weather-related usage, Southern Company’s residential sales rose 8.7% while commercial sales rose 0.7% compared to the same period in 2015. Industrial sales continued their downtrend in 4Q16 as well. They fell 2.4% in the reported quarter compared to the year-ago quarter.
Revenues from Southern Company Gas rose $1.1 billion during 4Q16 compared to 4Q15. Southern Company’s total revenues in 2016 came in at $19.9 billion against its revenues of $17.5 billion in 2015, accounting for sturdy growth of nearly 14%.
Weather in 4Q16 helped many utilities (XLU) such as Duke Energy (DUK). Duke posted a 6% increase in revenues year-over-year. On the other hand, NextEra Energy (NEE), which primarily operates in Florida, reported a 9% fall in revenues due to unfavorable weather in 4Q16.