Otter Tail Corporation Announces Fourth Quarter Earnings, Increases Quarterly Dividend 5.8% and Announces 2022 Earnings Guidance of $3.78 to $4.08 per share

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[{"type":"text","content":" FERGUS FALLS, Minn.--(BUSINESS WIRE)--\nOtter Tail Corporation (Nasdaq: OTTR) today announced financial results for the quarter and the year ended December 31, 2021.\n\n2021 SUMMARY\n\n\n\n(in millions, except per share amounts)\n\n\n\n4Q 2021\n\n\n\n \n\n\n\n4Q 2020\n\n\n\n \n\n\n\n2021\n\n\n\n \n\n\n\n2020\n\n\n\n\n\nOperating Revenues\n\n\n\n$ 333.2\n\n\n\n \n\n\n\n$ 226.8\n\n\n\n \n\n\n\n$ 1,196.8\n\n\n\n \n\n\n\n$ 890.1\n\n\n\n\n\nNet Income\n\n\n\n$ 51.6\n\n\n\n \n\n\n\n$ 18.7\n\n\n\n \n\n\n\n$ 176.8\n\n\n\n \n\n\n\n$ 95.9\n\n\n\n\n\nDiluted Earnings Per Share\n\n\n\n$ 1.23\n\n\n\n \n\n\n\n$ 0.45\n\n\n\n \n\n\n\n$ 4.23\n\n\n\n \n\n\n\n$ 2.34\n\n\n\n\n2021 HIGHLIGHTS\n\nCompared to the year ended December 31, 2020:\n\n\nConsolidated operating revenues increased 34.5% to $1.2 billion.\n\n\n\nConsolidated net income increased 84.4% to $176.8 million.\n\n\n\nDiluted earnings per share increased 80.8% to $4.23 per share.\n\n\n\nThe corporation achieved a consolidated return on equity of 19.2% on an equity ratio of 53.7%.\n\n\nThe corporation’s board of directors increased the quarterly common stock dividend to $0.4125 per share, an indicated annual dividend rate of $1.65 per share and a 5.8% increase from $1.56 per share in 2021.\n\nThe corporation expects 2022 diluted earnings per share to be in a range of $3.78 to $4.08.\n\nCEO OVERVIEW\n\n“Otter Tail Corporation, through the efforts of our employees, achieved record financial results for the year ended December 31, 2021,” said President and CEO Chuck MacFarlane. “Our Plastics segment completed its outstanding year as we capitalized on unique industry supply and demand conditions. PVC resin supply constraints began from the extreme cold weather in February, which caused resin suppliers to temporarily close various petrochemical plants in the Gulf Coast region, and was exacerbated in the third quarter of 2021 from disruptions caused by Hurricane Ida. These supply constraints, along with strong customer demand, resulted in low PVC pipe inventories, which led to high PVC pipe prices and margins at levels not previously experienced.\n\n“Electric segment earnings increased 8.5 percent in 2021, driven primarily by rate base growth from our Merricourt and Astoria Station projects being commercially operational and the $420 million total investment fully reflected in our rate base r...

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