Southern Co. Delays Launch of Nuclear Power Plant After Testing Reveals Vibrating Pipe in Cooling System
January 16, 2023
Trending News 🌥️
Southern ($NYSE:SO) Co. is an American energy services company based in Atlanta, Georgia. It is also the second largest electricity producer in the United States and operates nuclear, coal, natural gas, and renewable energy plants. On Wednesday, Georgia Power, a subsidiary of Southern Co., declared that the launch of the Plant Vogtle Unit 3 nuclear power plant is going to be postponed after testing before operation revealed a vibrating pipe in the cooling system. Georgia Power explained that the pipe needs to be reinforced with additional support in order to avoid any potential safety concerns. The company added that the vibration was not a risk to safety, but that it needed to be taken seriously and addressed before the plant could become operational.
Southern Co. is determined to bring Plant Vogtle Unit 3 online safely and efficiently. In the meantime, they are taking steps to make sure that any potential risks are addressed and mitigated before the plant can become operational. They are also working with contractors to ensure that costs are kept as low as possible and that taxpayers are not left footing the bill for the delay.
Share Price
This news has been met with mostly negative reactions from investors and analysts, who are concerned about the potential safety and cost implications of the issue. On Thursday, SOUTHERN COMPANY stock opened at $71.4 and closed at $70.3, down by 1.7% from prior closing price of 71.6. It also brings into question their ability to meet their projected deadlines and budgets for future projects. The delay could also lead to additional costs that could affect their bottom line in the future. Southern Co. has yet to comment on the issue or provide any details on how they plan to address the issue.
The company’s silence has done little to quell investors’ concerns and many are waiting for more information before making any decisions. In the meantime, Southern Co.’s share price is likely to remain volatile until more information is provided about how they plan to deal with the issue. Investors will be closely watching for any updates on the situation and will be eager to see if Southern Co. is able to get their nuclear power plant up and running without any further issues. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Southern Company. More…
| Total Revenues | Net Income | Net Margin |
| 28k | 3.4k | 11.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Southern Company. More…
| Operations | Investing | Financing |
| 6.11k | -7.46k | 1.26k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Southern Company. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 134k | 98.29k | 28.92 |
Key Ratios Snapshot
Some of the financial key ratios for Southern Company are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 8.6% | -2.9% | 20.8% |
| FCF Margin | ROE | ROA |
| -5.1% | 12.1% | 2.7% |
VI Analysis
Investors looking for moderate but steady returns may be interested in companies like SOUTHERN COMPANY. Its fundamentals reflect its long term potential, as shown by the VI Star Chart rating of ‘Rhino’. This indicates that the company has achieved moderate revenue or earnings growth. SOUTHERN COMPANY is strong in dividend and medium in growth, profitability and asset. It has an intermediate health score of 4/10 considering its cashflows and debt. SOUTHERN COMPANY might be able to pay off debt and fund future operations, making it an attractive option for investors seeking more consistent returns. In terms of its financials, SOUTHERN COMPANY has a healthy balance sheet with good long-term debt management. It also has a solid liquidity position with plenty of cash on hand to fund operations. In addition, its operational performance is satisfactory with well-managed costs and reasonable efficiency. Furthermore, it has a diversified customer base, making it less exposed to fluctuations in demand. Overall, SOUTHERN COMPANY is an attractive investment for those looking for moderate but consistent returns. Its fundamentals reflect its long-term potential, and its financials are healthy with a decent liquidity position, good debt management and satisfactory operational performance. More…
VI Peers
In the electric utility industry, there is intense competition between Southern Co and its competitors: NextEra Energy Inc, Avangrid Inc, Entergy Corp. These companies are all vying for market share in the Southeast region of the United States.
– NextEra Energy Inc ($NYSE:NEE)
NextEra Energy Inc is a leading clean energy company with operations in 27 states and Canada. The company has a market cap of 143.98B as of 2022 and a Return on Equity of 4.45%. NextEra Energy Inc is committed to providing clean, safe and reliable energy to its customers. The company has a diversified portfolio of generation assets that includes wind, solar, nuclear and natural gas. NextEra Energy Inc is also one of the largest electric utilities in the United States.
– Avangrid Inc ($NYSE:AGR)
Avangrid Inc is a leading energy services and delivery company with operations in 26 states. It has a market cap of 15.4 billion and a return on equity of 3.84%. The company is involved in the generation, transmission, and distribution of electricity and natural gas. It also provides renewable energy solutions.
– Entergy Corp ($NYSE:ETR)
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 10,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi, and Texas.
Summary
Southern Company, a leading electricity provider in the US, has experienced a setback after a test revealed a vibrating pipe in the cooling system of their nuclear power plant. Given the negative news, investors should take caution when considering an investment in Southern Company. Analysts suggest that investors should pay close attention to developments in the project as it could have an impact on the stock price. Additionally, investors should review other fundamental factors such as financials, competition, and management before making an investment decision.
Related Posts
Recent Posts
Investing Everyone Can Do.
Investing shouldn’t be exclusive to a select few. We believe everyone should have the opportunity to grow their wealth. That’s why our app is designed to be accessible and user-friendly, even for beginners.
