Thursday, October 25, 2012

Ohio Utility Corp 2011 Earnings Up 38% Over 2009

From an extensive review of SEC filings, I found four Utility Corps based in the State of Ohio with externally audited After-tax Net Income or Net Loss from Continuing Operations of at least $100 mil in any of the most recent three years.

Two of these Ohio Utility companies.....American Electric Power and First Energy.....have their common stock trading, whereas the other two.....Duke Energy Ohio and DPL (Dayton Power & Light).....are subsidiaries of other companies, thus they do not have stock that trades, but they still file their separate financial statements with the SEC.

These four Ohio Utility Corps generated Total Audited After-tax Net Income of $2,832 mil in 2011, which was an increase of a very robust 38% from the $2,059 mil earned two years earlier in 2009.

Below here are the Audited After-tax Net Income of these four Ohio Utility Corps for each of the most recent three years.

2011 2010 2009

Net Net Net

City State Income Income Income

HQs HQs (Loss) (Loss) (Loss)

mil $s mil $s mil $s
Ohio Utility Corps

American Electric Power Columbus OH 1,576 1,218 1,370
First Energy Akron OH 869 718 856
Duke Energy Ohio Cincinnati OH 194 (441) (426)
Dayton Power & Light Dayton OH 193 278 259

Total all 4

2,832 1,773 2,059

Annual Earnings Percentage Change
60% -14%

Two Year (2009-2011) Earnings Increase





As you can see from the above, the huge, broad-based American Electric Power (AEP) generated 56% of the total earnings in 2011 of all four of these large Ohio Utility Corps combined.

AEP had its common stock trading on Tuesday October 23, 2012 at $44.62 per share, which was a very robust 37% increase from the $32.50 it was trading at just before President Obama took office.

And AEP's impressive 37% stock market price increase during the Obama Administration is understated in real terms since it does not include the huge amount of cash dividends its investors have received in the past 15 quarters of the Obama Administration.

Investors buy Utility Stocks mainly for the robust cash dividends they receive, not for longer-term stock price appreciation.  Thus, when they get a huge stock market increase to boot, they have to be very pleased.