OGE Energy Corp. announced its first quarter 2019 earnings on Thursday, showing its net income of $47 million was down from the $55 million reported a year ago. Net income for OGE was also down, coming in at $20 million compared to the nearly $31 million reported in the first quarter of 2018.
The company said the primary drivers for the decrease in net income were a number of things including higher expenses due to the timing of certain projects when compared to 2018. Another was the placing of additional assets into service and lower allowances for funds used during construction as key environmental investments were placed into service.
The report indicated that decreases were partially offset by higher revenues from favorable weather and lower interest and income tax expenses.
OGE Energy Corp is the parent company of Oklahoma Gas and Electric and also the holder of 25.5 percent limited partner interest and 50 percent general partner interest in Oklahoma City-based Enable Midstream Partners, LP. Earnings for OGE Energy Corp for the three months ending March 31, 2019 were 24 cents per diluted share compared to 27 cents for the first quarter of 2018.
OG&E, a regulated electric utility, contributed earnings of $0.10 per share in the first quarter, compared with earnings of $0.16 per share in the first quarter last year. OGE Energy Holdings, which is primarily Natural Gas Midstream Operations, contributed earnings of $0.11 per share, a slight decrease from the prior year’s quarter. The holding company reported earnings of $0.03 per share primarily due to an income tax benefit compared with breakeven results in 2018.
“Both the utility and midstream businesses had solid first quarters and are on plan for the year,” said OGE Energy Corp. Chairman, President and CEO Sean Trauschke. “With our large environmental investments complete, we look forward to continuing to enhance the customer experience through investments in technology and the electric grid.”
Despite the drop in earnings, the company is not changing its 2019 consolidated earnings guidance which is between nearly $412 million and $442 million of net income or $2.05 to $2.20 per average diluted share.
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