OGE’s parent company, OGE Energy Corp. reported lower earnings of $1.20 per share in the third quarter of the year.
The earnings compared to $1.31 per share a year ago. OGE Energy’snet income was $241.9 million or $1.20 per diluted share in the third quarter, compared to earnings of $262.8 million, or $1.31 per diluted share, in the same period 2022.
At the same time, OGE itself contributed lower net income of $246.1 million or $1.22 a share, compared to $253.1 million and $1.26 a diluted share in the same period of 2022. Executives blamed milder weather on the decrease in net income, in addition to higher depreciation and interest expense on a growing asset base.
“With a warmer than normal summer, I’m proud of our team’s delivery of safe and reliable electricity to our customers every day, without the calls for public conservation seen in other parts of the country”, said Sean Trauschke, OGE Energy Corp. Chairman, President and CEO.
“Due to the benefit of excellent operational execution of our team, diversified growth in our communities, and a hot summer, we are increasing our 2023 earnings guidance.”
The report indicated that most of the operations revenue for OG&E came from residential customers and totaled $401.2 million in the third quarter, down from the $523.1 million reported in the third quarter of 2022. For the first nine months of 2023, OG&E’s total operations revenue was $836 million compared to $1,409,400 for the same time period last year.
The company’s 2023 OG&E electric company earnings guidance midpoint and range have been increased and narrowed to $2.09 to $2.13 per average diluted share, increased from the previously issued guidance of $1.99 to $2.09 per average diluted share.
OGE Energy’s consolidated earnings guidance midpoint and range for 2023 have been increased and narrowed and the range is now projected to be $2.02 to $2.07 per average diluted share, increased from $1.93 to $2.07 per average diluted share. Other Operations (primarily Holding Company) projects a loss of $0.06 to $0.07 per average diluted share.
The guidance assumes, among other things, approximately 201 million average diluted shares outstanding and normal weather for remainder the year. OG&E has significant seasonality in its earnings due to weather on a year over year basis.