Otter Tail Corporation Announces Fourth Quarter Earnings, Record Annual Earnings, Increases Quarterly Dividend and Announces 2023 Earnings Guidance

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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 year ended December 31, 2022.\n\n2022 SUMMARY\n\n\n\n(in millions, except per share amounts)\n\n\n\nQ4 2022\n\n\n\n \n\n\n\nQ4 2021\n\n\n\n \n\n\n\n \n\n\n\n2022\n\n\n\n \n\n\n\n \n\n\n\n2021\n\n\n\n\n\nOperating Revenues\n\n\n\n$\n\n\n\n301.4\n\n\n\n \n\n\n\n$\n\n\n\n333.2\n\n\n\n \n\n\n\n$\n\n\n\n1,460.2\n\n\n\n \n\n\n\n$\n\n\n\n1,196.8\n\n\n\n\n\nNet Income\n\n\n\n$\n\n\n\n42.0\n\n\n\n \n\n\n\n$\n\n\n\n51.6\n\n\n\n \n\n\n\n$\n\n\n\n284.2\n\n\n\n \n\n\n\n$\n\n\n\n176.8\n\n\n\n\n\nDiluted Earnings Per Share\n\n\n\n$\n\n\n\n1.00\n\n\n\n \n\n\n\n$\n\n\n\n1.23\n\n\n\n \n\n\n\n$\n\n\n\n6.78\n\n\n\n \n\n\n\n$\n\n\n\n4.23\n\n\n\n\nCompared to the year ended December 31, 2021:\n\n\nConsolidated operating revenues increased 22% to $1.5 billion.\n\n\nConsolidated net income increased 61% to $284.2 million.\n\n\nDiluted earnings per share increased 60% to $6.78 per share.\n\n\nThe corporation achieved a consolidated return on equity of 25.6% on an equity ratio of 59.4%.\n\n\nThe corporation’s board of directors increased the quarterly common stock dividend to $0.4375 per share, an indicated annual dividend rate of $1.75 per share in 2023, a 6.1% increase from $1.65 per share in 2022.\n\nCEO OVERVIEW\n\n“Otter Tail Corporation, through the collective efforts of our employees and the strength of our diversified business model, achieved record annual financial results in 2022,” said President and CEO Chuck MacFarlane. “Each operating segment produced double digit annual earnings growth in 2022. Our Plastics segment completed another extraordinary year, producing $195 million of earnings in 2022, as operating margins benefited from elevated spreads of PVC pipe sale prices over resin input costs. Although our Plastics segment had an extraordinary year, demand for PVC pipe sharply declined in the second half of 2022 as contractors delayed projects due to supply chain issues, the housing market outlook continued to soften, and resin price reductions contributed to pipe distributors and contractors reducing PVC pipe purchases in an effort to manage their inventory levels.\n\n“Electric segment earnings increased 10% compared to 2021, driven by increased commercial and industrial sales volumes, increasing rate base a...

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