Evergy reports large increase in 2018 earnings

Evergy, Inc., the new firm created as a result of the merger of Westar Energy and Great Plains Energy reported full 2018 earnings of $536 million or $2.50 per share an increase over a year earlier.

The Kansas City-based company said it compared with earnings of $324 million or $2.27 a share for all of 2017. Fourth quarter 2018 earnings were $19 million or 7-cents a share compared to fourth quarter 2017 earnings of $34 million or 24 cents a share.

Westar Energy and Great Plains Energy which is the parent company of Kansas City Power and Light merged in June of last year.

The earnings increase in 2018 compared to 2017 was primarily due to the inclusion of KCP&L and GMO earnings, higher Westar retail sales, driven by favorable weather, and lower income tax expense, partially offset by merger related costs and customer bill credits following the close of the merger.

Evergy announced full year 2018 pro forma earnings of $714 million, or $2.67 per share, which reflect the consolidated results of operations of Evergy as if the merger had taken place on January 1, 2017, and exclude non-recurring merger-related costs, compared with 2017 pro forma earnings of $469 million, or $1.73 per share. For the fourth quarter 2018, pro forma earnings were $20 million, or $0.08 per share, compared with a loss of $69 million, or $0.25 per share, for the fourth quarter of 2017.

Increased sales, due primarily to favorable weather, and lower income tax expense contributed to the year-over-year increase in pro forma earnings.

The Board of Directors declared a dividend of $0.475 per share payable on March 20, 2019, on the Company’s common stock. The dividends are payable to shareholders of record as of March 4, 2019.