OGE Energy Corp.'s (OGE) first-quarter earnings improved 2.5% on
prior-year charges and higher gross margins, which more than offset
a drop in revenue and an increase in operating costs.
The electric utility company, parent to Oklahoma Gas and
Electric Co., has reported generally strong results of late, due to
strong growth at the Enogex LLC pipeline business. In the latest
quarter, however, Enogex's fully reported earnings fell 31% as
sales price per gallon of natural gas dropped 23%.
At its utility operations, revenue fell 4.9% although
electricity sales increased 3.1%.
OGE posted a profit of $24.8 million, up from $24.2 million a
year ago. On a per-share basis, earnings were flat at 25 cents.
Excluding charges related to the U.S. government's health care
overhaul, ongoing earnings a year ago would have been 36 cents.
Analysts polled by Thomson Reuters expected a profit of 31
cents.
Revenue decreased 4% to $840.5 million.
Gross margin rose to 36.6% from 34.9%, but total operating costs
grew 9.4%.
Shares of OGE, which reaffirmed its full-year earnings outlook,
closed at $52.40 Wednesday and were inactive premarket.
-By John Kell, Dow Jones Newswires; 212-416-2480;
john.kell@dowjones.com