SouthStar Parent Sees Increase In Competitive Retail Customer Count, Reports Retail Segment Earnings

Southern Company, the ultimate parent of SouthStar Energy Services and related retail energy brands, reported earnings for the year 2018.

Southern Company's gas marketing services segment is comprised of SouthStar and provides natural gas commodity and related services to customers in competitive markets or markets that provide for customer choice. The gas marketing services segment provides energy-related products and services to natural gas markets and participants in customer choice programs. The segment does not include wholesale gas marketing, which is in a separate segment.

Southern's gas marketing services segment was serving 697,000 customers as of December 31, 2018, versus 685,000 as of September 30, 2018 and 774,00 a year ago. The totals include customers in Ohio contracted through the annual auction process for SCO customers. At December 31, 2018 and 2017, there were approximately 70,000 and 140,000 contracted customers, respectively

Southern's gas marketing services segment's market share in Georgia was 29.0% as of December 31, 2018, versus 29.2% as of September 30, 2018 and 29.2% a year ago.

The gas marketing services volumes were as follows:

Gas marketing services volumes
(mmBtu in millions)

Full Year     2018   2017

Firm:
Georgia        37     32
Illinois       13     12
Other          20     18

Interruptible 
 Large C&I     14    14

Total          84    76

Gas marketing services reported operating revenues of $568 million for the year 2018, versus $860 million a year ago

Gas marketing services reported adjusted operating margin of $263 million for the year 2018, versus $313 million a year ago

Gas marketing services reported EBIT of $20 million for the year 2018, versus $113 million a year ago

Gas marketing services reported operating income of $19 million for the year 2018, versus $113 million a year ago

Gas marketing services reported a net loss of $40 million for the year 2018, versus net income of $84 million a year ago

Net income for gas marketing services includes a loss on disposition of $(33) million ($(67) million loss after tax) and a goodwill impairment charge of $42 million for the year ended December 31, 2018 recorded in contemplation of the sale of Pivotal Home Solutions