The Southern Company Q3 FY2020 Earnings Call

· Earnings call transcript and AI-powered summary

Southern Company Q3 2020 Earnings Summary

  • Southern Company reported strong adjusted results ahead of prior expectations, with COVID‑19 demand impacts moderating.
  • Adjusted EPS for Q3 2020 was 1.02 per share, down 0.12 versus Q3 2019 but 0.07 above internal estimates.
  • Milder weather and COVID‑19 reduced EPS year to date by 0.41 compared with 2019, but cost controls and regulatory support helped offset impacts.
  • Full‑year adjusted EPS expected at the high end of the guidance range of 3.10 to 3.22.
  • Total COVID‑19 impact for 2020 remains forecast around 300 million.

Vogtle Units 3 & 4 Project Update

  • Unit 3 is now expected in service in Q3 2021, ahead of the regulatory deadline (November 2021).
  • Unit 4 is still targeted for June 2022, giving margin ahead of the regulatory deadline (November 2022).
  • Georgia Power’s total project cost forecast remains unchanged at 8.5 billion.
  • Unit 3 construction is 94% complete, and the shift from aggressive scheduling to expected scheduling reduces risk as milestones narrow.
  • Cold hydro testing for Unit 3 completed successfully in mid‑October; hot functional testing expected to begin January 2021.
  • Approximately 90 million of schedule cost margin was used following updated work plans; remaining contingency and margin equal 18% of costs to complete.

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Operator: Good afternoon. My name is Pema, and I will be your conference operator today. At this time, I would like to welcome everyone to the Southern Company Third Quarter 2020 Earnings Call. All lines have been muted to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer session. [Operator Instructions] As a reminder, this conference is being recorded, Thursday, October 29, 2020. I would now like to turn the conference over to Mr. Scott Gammill, Investor Relations Director. Please go ahead, sir. Scott Gammill: Thank you, Pema. Good afternoon and welcome to Southern Company’s third quarter 2020 earnings call. Joining me today are Tom Fanning, Chairman, President, and Chief Executive Officer of Southern Company; and Drew Evans, Chief Financial Officer. Let me remind you, we’ll be making forward-looking statements today in addition to providing historical information. Various important factors could cause actual results to differ materially from those indicated in the forward-looking statements, including those discussed in our Form 10-K, Form 10-Qs, and subsequent filings. In addition, we will provide non-GAAP financial information on this call. Reconciliations to the applicable GAAP measure are included in the financial information we released this morning, as well as the slides for this conference call, which are both available on our Investor Relations website at investor.southerncompany.com. At this time, I’ll turn the call over

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