Southern Company today reported third quarter 2014 earnings of $718 million, or 80 cents per share, compared with earnings of $852 million, or 97 cents per share, in the third quarter of 2013. 

For the nine months ended Sept. 30, 2014, earnings were $1.68 billion, or $1.88 per share, compared with $1.23 billion, or $1.41 per share, for the same period in 2013.

Earnings for the three and nine months ended Sept. 30, 2014, include after-tax charges of $258 million (29 cents per share) and $493 million (55 cents per share), respectively, related to increased cost estimates for the construction of Mississippi Power's Kemper County integrated gasification combined cycle (IGCC) project. Earnings for the three and nine months ended Sept. 30, 2013, include after-tax charges of $93 million (11 cents per share) and $704 million (81 cents per share), respectively, related to the Kemper County IGCC project. Earnings for the first nine months of 2013 also include an after-tax charge of $16 million (2 cents per share) for the restructuring of a leveraged lease investment recorded in the first quarter of 2013.

Excluding these items, Southern Company earned $976 million, or $1.09 per share, during the third quarter of 2014, compared with $945 million, or $1.08 per share, during the third quarter of 2013. For the first nine months of 2014, excluding these items, Southern Company earned $2.17 billion, or $2.43 per share, compared with earnings of $1.95 billion, or $2.24 per share, for the same period in 2013.

Earnings continue to be positively influenced by increased industrial sales, closer-to-normal weather and retail revenue effects at Southern Company's traditional operating companies. Earnings were negatively influenced by increased non-fuel operations and maintenance expenses.

"We continue to see evidence of economic recovery across the Southeast, such as increases in industrial sales and residential customer growth," said Southern Company Chairman, President and CEO Thomas A. Fanning. "We will support this recovery, as always, through our customer-focused business model and our commitment to providing clean, safe, reliable and affordable energy."

Fanning also pointed to progress at the Kemper County project. "The Kemper County plant is generating electricity from natural gas," he said. "With construction essentially complete, our focus turns towards the startup of the gasification and carbon capture systems. We believe our recent schedule extension will help preserve the long-term value of this important technology – not just for Mississippi Power customers, but for the U.S. and the world."

Third quarter 2014 operating revenues were $5.34 billion, compared with $5.02 billion for the same period in 2013, an increase of 6.4 percent. Operating revenues for the first nine months of 2014 were $14.45 billion, compared with $13.16 billion for the same period in 2013, a 9.8 percent increase. 

Kilowatt-hour sales to retail customers in Southern Company's four-state service area increased 3.6 percent in the third quarter of 2014 compared with the third quarter of 2013. Residential energy sales increased 5.0 percent, commercial energy sales increased 1.1 percent and industrial energy sales increased 4.8 percent.

For the first nine months of 2014, retail sales increased 4.2 percent compared with the same period in 2013. Residential energy sales increased 7.2 percent, commercial energy sales increased 2.0 percent and industrial energy sales increased 3.6 percent.

Total energy sales to the Southern Company system's customers in the Southeast, including wholesale sales, increased 7.7 percent in the third quarter of 2014 compared with the same period in 2013. For the first nine months of 2014, total energy sales increased 7.3 percent compared with the same period in 2013.

Southern Company's financial analyst call will begin at 1 p.m. Eastern time today, during which Fanning and Chief Financial Officer Art P. Beattie will discuss earnings and provide a general business update. Investors, media and the public may listen to a live webcast of the call and view associated slides at http://investor.southerncompany.com/webcasts. A replay of the webcast will be available at the site for 12 months. 

Southern Company has also posted on its website detailed financial information on its third quarter performance. These materials are available at www.southerncompany.com.