Southern Company: SWOT Analysis & Company Profile by BusinessReview

VIEWS: 108 PAGES: 25

Business Review’s Southern Company contains a company overview, key facts, locations and subsidiaries, news and events as well as a SWOT analysis of the company.

More Info
									Southern Company


Southern Company: SWOT Analysis &
Company Profile

Reference code: BRPW014CP10-Q4

Published: Jun 2010

Business Review
John Carpenter House
7 Carmelite Street
London EC4Y 0BS
United Kingdom
Tel: +44 (0) 20 7936 6400
Fax: +44 (0) 20 7336 6813


Southern Company - SWOT Profile                                                     Page 1
Southern Company


Southern Company - Company Overview

Southern Company (Southern) is one of the largest electricity generators in the US. The company is engaged in the
generation, distribution, retail, marketing, and sale and trading of electricity. The company owns and operates four
traditional operating companies, through which, it serves states of Alabama, Georgia, Florida, and Mississippi. Southern
also sells power in wholesale market and transmit wholesale power for other providers. As of December 31, 2009, the
company owned and operated 34 fossil fuel generating stations, 12 combined cycle/cogeneration stations, 34
hydroelectric generating stations, and three nuclear generating stations with a total capacity of 42,932.3 MW. It serves
over 4.4 million residential and commercial customers. Southern is headquartered in Atlanta (Georgia), the US.

Financial Performance

The company reported revenues of (U.S. Dollars) USD 15,743.00 million during the fiscal year ended December 2009, a
decrease of 8.08% from 2008. The operating profit of the company was USD 3,277.00 million during the fiscal year 2009,
a decrease of 6.53% from 2008. The net profit of the company was USD 1,708.00 million during the fiscal year 2009, a
decrease of 5.48% from 2008.

Southern Company - Key Facts

Southern Company, Key Facts

                                  30 Ivan, Atlanta, Georgia (GA),
                                                                    Ticker Symbol, Stock
Corporate Address:                                                                             SO (New York Stock Exchange)
                                  30308, United States              Exchange

Telephone                         + 1 404 5065000                   No. of Employees           26,112

Fax                               + 1 404 5060455                   Financial Year End         December

URL                                Revenue (in USD Million)   15,743.00

Industry                          Alternative Energy , Power

Locations                         United States

Source: Annual Report, Company Website, Primary and Secondary Research


Southern Company - SWOT Profile                                                                                     Page 2
Southern Company


Southern Company - Business Description

Southern Company (Southern) is a US based leading generator of electricity. The company is engaged in the generation,
distribution, retail, marketing, and sale and trading of electricity in Southeastern of the US. During the fiscal year 2009, the
company generated 57% of electricity by using coal as a source, 23% from oil and gas, 16% from nuclear, and 4% from
hydro energy.

As of December 31, 2009, the company had a total generating capacity of over 42,932.3 MW. The company also provides
retail services of electricity in its operating region. In addition to this, Southern sells its generated power in to wholesale
market as well as transmits wholesale power for other providers.

The company carries out its operations through three reportable business segments namely, Traditional Operating
Companies, Southern Power and Other Businesses.

Southern’s Traditional Operating Companies include various generation, transmission, and distribution facilities. Alabama
Power, Georgia Power, Gulf Power and Mississippi Power are the traditional operating companies of Southern. Under this
segment, the company and its subsidiaries own and operate generating and transmission facilities, which are connected
to the respective company’s generating plants.

The company, under its Southern Power business segment, manages electricity produced by the company and its
subsidiaries. In addition to this, the company carries out activities including acquiring and construction of power plants,
managing power generating facilities, and marketing, selling and wholesale of electricity. Southern had 7,880 MW of
nameplate capacity in commercial operation as of December 31, 2009.

Southern’s Other Businesses segment activities include an investment in a synthetic fuel producing company, leveraged
lease projects, telecommunications and various energy related services. The company's Southern Holdings provides
investments in leveraged leases; and SouthernLINC Wireless provides digital wireless communications.

The company principally operates in Alabama, Florida, Georgia, Mississippi and the Carolinas, and serves over 4.4 million
residential, commercial, and industrial customers.

Southern is the parent company of four traditional operating companies, namely, Alabama Power Company (Alabama
Power), Georgia Power Company (Georgia Power), Gulf Power Company (Gulf Power), and Mississippi Power Company
(Mississippi Power). In addition, the company owns and operates Southern Company Services, Inc. (SCS), Southern
Communications Services, Inc. (SouthernLINC Wireless), Southern Company Holdings, Inc. (Southern Holdings),
Southern Nuclear Operating Company, Inc. (Southern Nuclear), and other direct and indirect subsidiaries. The company’s
Southern Nuclear operates its three nuclear generating plants in Alabama and Georgia.

Recently, the company signed an agreement with Ted Turner, the largest individual landowner in North America to
develop renewable energy projects in the US.


Southern Company - SWOT Profile                                                                                        Page 3
Southern Company


Southern Company - Major Products and Services

Southern Company generates, distributes, retails, markets, trades and sells electricity. Major activities of the company
include the following:

Southern Company, Major Products and Services

Electricity generation

Marketing and trading of electricity

Source: Annual Report, Company Website, Primary and Secondary Research


Southern Company - SWOT Profile                                                                                     Page 4
Southern Company


Southern Company - History

Southern Company, History

    Year                Event type                                                  Description

                                                The company's subsidiary, Southern Power started building biomass-fueled projects in
   2009      Corporate Changes/Expansions
                                                Sacul, Texas.

                                                The company, through its subsidiary, Southern Power acquired 100% interest in West
   2009      Acquisitions/Mergers/Takeovers
                                                Georgia Generating Company, LLC, an affiliate of LS Power.

   2009      Acquisitions/Mergers/Takeovers The company acquired Nacogdoches Power, LLC from American Renewables, LLC.

                                                The company sold its gas operations to Gas South, a newly formed affiliate of Cobb
   2006      Stake Sale

                                                The company entered into the Georgia retail natural gas market by acquiring The
   2002      Acquisitions/Mergers/Takeovers
                                                NewPower Company, Inc.

                                                The company spun off its international subsidiary, Southern Energy, into a separate
   2001      Spin-off

                                                The company established a subsidiary, Southern Power, to own, manage and finance
   2001      Corporate Changes/Expansions
To top