(RTTNews) - OGE Energy Corp. (OGE: News ), the parent company of Oklahoma Gas and Electric Co., or OG&E, and Enogex LLC, reported Friday a marginal decline in third-quarter profit, attributable mainly to lower revenues. The full impact of revenue decline on bottom-line was partially offset by improved margins in the electric utility business due to rate increases. On a per share basis, earnings came in above analysts' estimate by 6 cents despite an increase in share count. The company also reiterated its earlier earnings guidance for fiscal 2009, while providing earnings outlook for fiscal 2010.

For the third quarter, net income attributable to OGE energy dropped to $136.8 million or $1.40 per share from $139.5 million or $1.50 per share in the previous year. On average, four analysts polled by Thomson Reuters expected the company to report earnings of $1.34 per share in the third quarter. Analysts' estimates typically exclude special items.

During the quarter, diluted average common shares outstanding increased to 97.7 million from 93.0 million in fiscal 2008.

OG&E recorded earnings of $123 million or $1.26 per share, compared with $107 million or $1.15 per share last year. Enogex posted earnings of $18 million or $0.18 per share, down from $28 million or $0.30 per share a year ago.

Net income, including non-controlling interest, dipped year-over-year to $137.5 million from $141.4 million.

Total operating revenues for the period shrank to $845.3 million from $1.25 billion last year. Electric Utility revenues slid to $577.9 million from $682.5 million, while Natural Gas Pipeline revenues plunged to $267.4 million from $571.8 million in the third quarter of the prior fiscal year.

The company's gross margin went up to $431.2 million from $417.5 million last year. OG&E's gross profit increased to $342 million from $302 million, mainly because of retail rate increases in 2009 partially offset by milder weather. Enogex's gross margin was $93 million, compared with $108 million last year due primarily to lower commodity prices, partially offset by continued volume growth.
Operating income came down to $229.7 million from $231.2 million in the comparable quarter of fiscal 2008.

Interest expense on long-term debt for the quarter swelled to $37.3 million from $25.7 million in the prior-year period.

For the nine-month period, net income attributable to OGE energy climbed to $224.1 million or $2.31 per share from $209.6 million or $2.26 per share in fiscal 2008. Revenues dropped to $2.09 billion from $3.38 billion in the same period last year.

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