By Austen Hufford
Southern Co. said its third-quarter revenue and profit rose on warmer weather and benefits from a natural gas business it had recently purchased.
Southern said warmer-than-normal weather, retail revenue and the stronger-than-expected performance of its Southern Power wholesale generation subsidiary bolstered results.
Total electricity sales volume increased 5.7% with retail electricity sales growing 3.2% and wholesale volume increasing 18%.
In July, Southern said it was buying a stake in a 7,600-mile natural-gas pipeline system from Kinder Morgan Inc. for $1.47 billion. The acquisition brought in $518 million in natural gas revenue in the quarter.
In all, Southern reported a profit of $1.16 billion, up from $970 million a year prior. On a per-share basis, which reflects preferred dividends, per-share earnings increased to $1.18 from $1.05. Excluding certain items, adjusted per-share earnings were $1.28. Revenue increased 16% to $6.26 billion.
Analysts polled by Thomson Reuters had expected per-share profit of $1.17 on revenue of $5.98 billion.
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(END) Dow Jones Newswires
October 31, 2016 08:48 ET (12:48 GMT)
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