Oklahoma City-based OGE Energy Corp. posted 2019 net income of $433.6 million, up 1.9% from 2018. Revenue for the utility provider was down 1.6%. OGE Energy Corp. is the parent company of the utility providing electricity to large parts of the Fort Smith metro.
Total revenue in 2019 was $2.175 billion, down from $2.211 billion in 2018 and below the consensus estimate among analysts of $2.35 billion, according to the company’s earnings report posted Thursday (Feb. 27). Per share net income of $2.16 was also below the consensus estimate of $2.24.
Fourth quarter revenue for the regulated utility was $457.8 million, below the $501.6 million in the fourth quarter of 2018. Net income in the quarter was $35.4 million, below the $54.7 million during the same quarter of 2018.
“Our company achieved another solid year in 2019,” OGE Energy Chairman, President and CEO Sean Trauschke said in the earnings report. “We wrapped up our environmental compliance investments, opportunistically purchased two power plants under legacy purchase power agreements thereby saving customers millions of dollars. We continued to attract new businesses to our service territory and at the same time maintained the lowest rates in the nation. I could not be prouder of our members’ 2019 accomplishments.”
2019 revenue from residential customers, the largest revenue sector, was $891.1 million, down from $901 million in 2018. Revenue from commercial customers was $503.1 million in 2019, down from $519.9 million in 2018. Industrial customer revenue was $223 million, down from $234.5 million in 2018.
The company ended 2019 with 857,754 customers, up from 849,372 customers at the end of 2018. OG&E provides utility services in Oklahoma and western Arkansas, with an electric transmission and distribution system that spans 30,000 square miles. With approximately 6,616 megawatts of capacity, OG&E generates electricity from natural gas, low-sulfur coal, wind and solar.
Company shares (NYSE: OGE) closed Thursday at $40.48, down $2.64 thanks in large part to a broad market selloff related to coronavirus fears. The share price has in the past 52 weeks ranged between $40.42 and $46.43.