OG&E earnings up 18.9% in Q3
by October 29, 2010 1:29 pm 86 views
Oklahoma City-based OGE Energy Corp. posted third-quarter net income of $163.5 million, up 18.9% over the 2009 period, and well above analyst expectations.
The per share earnings for the third quarter was $1.65, higher than the $1.56 per share average among analysts who follow the company.
The company has about 64,700 western Arkansas customers, and about 776,500 customers systemwide.
Total revenue from the company’s sales of electricity, natural gas and other energy-related functions was $1.125 billion, up 33.1% over the 2009 period.
For the first nine months of 2010, the company’s net earnings are $266.6 million, up 17.9% over the 2009 period. Total revenue for the first nine months of 2010 was $2.888 billion, up 37.7% over the 2009 period.
"The utility clearly benefited from the hot summer which resulted in record demands on our electric system," Pete Delaney, OGE Energy chairman, president and CEO, said in the Friday (Oct. 29) earnings statement. "At Enogex, we continue to experience strong growth. Processed volumes reached record levels for the third consecutive quarter.”
OGE Energy’s consolidated ongoing earnings guidance for 2010 has been increased to $2.95 to $3.05 per average diluted share, up from the previous guidance which was at the upper end of the $2.70 to $2.95 per average diluted share range.
OG&E seeks a $17.7 million rate increase for its Arkansas customers to help pay for more than $475 million invested in wind energy and other recent and planned expenses for a distribution system that covers 30,000 square miles.
The increase, if approved by the Arkansas Public Service Commission (PSC), will add an estimated $6.61 by the third quarter of 2011 to the average Arkansas residential electric bill.
The Oklahoma City-based electric utility received PSC approval on a $13.3 million rate increase in May 2009 after first requesting a $26.4 million bump. However, a fuel charge refund based on lower natural gas rates — OG&E uses natural gas to produce some of its electricity — resulted in a less than $3 increase on average residential bills. The 2009 rate increase was the first general rate increase OG&E received in 25 years.
OG&E shares (NYSE: OGE) were trading near $44 a share in Friday afternoon trading. During the past 52 weeks, the share price has ranged from a $44.08 high to a $31.66 low.