The Southern Company Q2 FY2021 Earnings Call
· Earnings call transcript and AI-powered summary
Quarter Highlights
- Adjusted EPS of $0.84, up $0.06 from Q2 2020 and above internal estimates. Year‑to‑date adjusted EPS up $0.26 versus first half 2020.
- Retail electric sales recovered to approximately 97–98% of 2019 pre‑pandemic levels, driven by strong residential demand and industrial recovery.
- Customer growth continued above expectations: new connections are 25% higher than forecast.
- Southern Company reiterated EPS growth outlook of 5%–7% and 2024 EPS target range of $4.00–$4.30.
Vogtle Units 3 & 4 Project Update
- Unit 3 Hot Functional Testing (HFT) is complete. This validates primary and secondary systems under full temperature and pressure.
- Revised in‑service targets:
- Unit 3: now expected in service Q2 2022 (previous estimate was earlier in 2022).
- Unit 4: now expected in service Q1 2023 (previously late 2022).
- Georgia Power’s projected share of total capital cost increased by $460 million due to schedule extensions, productivity trends, and replenished contingency. This led to a $343 million after‑tax charge in Q2.
- Unit 3 fuel load expected late 2021 or early 2022.
- Remaining Unit 3 “fuel load readiness” tasks:
- Completion of nuclear fuel system documentation (“paper”).
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