Earnings and net income plunge in 3Q for OGE Energy Corp.

 

OGE Energy Corp., the parent company of Oklahoma Gas and Electric reported a drop in its earnings for the third quarter of 2020 and it blamed much of it on a change in the weather.

Earnings totaled 89 cents a share in the quarter, down from the $1.25 per diluted share in the third quarter of 2019.

earnings of $0.89 per diluted share for the three months ended September 30, 2020, compared to $1.25 per diluted share for the third quarter of 2019.

Net income was $177 million compared to $251 million a year earlier. The company’s ongoing earnings were $207 million or $1.04 per share in the quarter.

However, OGE’s net income was about $199 million in the third quarter, down from the $227 million reported a year ago.

The company blamed the drop in income on “less favorable weather” as cooling degree days decreased 21% from the comparable quarter last year.

OGE Energy Corps various entities had lower contributed earnings as well. OGE, the regulated electricity utility contributed $1 a share compared to $1.13 a share a year ago. Natural Gas Midstream Operations had a contribution of 5 cents a share, well below the 14 cents a share reported at the end of the third quarter 2019.

The holding company posted a 16-cent a share loss in this year’s third quarter compared with a 2-cent a share loss one year earlier.

“We experienced an unusually cool summer this year, along with the impacts of COVID, and have offset these headwinds through operational savings,” said OGE Energy Corp. Chairman, President and CEO Sean Trauschke.

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