Otter Tail Corporation Announces Record Second Quarter Earnings, Increases 2022 Earnings Guidance, Board of Directors Declares Quarterly Dividend of $0.4125 per Share

About this update from Otter Tail Corporation

[{"type":"text","content":" FERGUS FALLS, Minn.--(BUSINESS WIRE)--\nOtter Tail Corporation (Nasdaq: OTTR) today announced financial results for the quarter ended June 30, 2022.\n\nSUMMARY\n\nCompared to the quarter ended June 30, 2021:\n\n\nConsolidated operating revenues increased 40% to $400 million.\n\n\nConsolidated net income increased 104% to $86 million.\n\n\nDiluted earnings per share increased 103% to $2.05 per share.\n\n\nThe corporation is increasing its 2022 diluted earnings per share guidance range to $6.83 to $7.13 from its previous range of $5.15 to $5.45.\n\nCEO OVERVIEW\n\n“Otter Tail Corporation, through the efforts of our employees, achieved record financial results for the quarter ended June 30, 2022,” said President and CEO Chuck MacFarlane. “Our Plastics segment completed another outstanding quarter as demand continued to outpace supply. This along with an increase in resin prices continued to drive an increase in the sales price of PVC products resulting in a further strengthening of spreads.\n\n“Electric segment earnings increased 22.2 percent compared to the second quarter of 2021, driven by increased commercial and industrial sales and finalization of interim rate refunds in connection with the conclusion of our Minnesota Rate Case. Manufacturing segment earnings increased 32.4 percent compared to the second quarter of 2021 primarily at BTD Manufacturing, Inc. (BTD) due to increases in sales prices, volumes and favorable cost absorption.\n\n“In June 2022, Otter Tail Power exercised its option to purchase the Ashtabula III wind farm, located in eastern North Dakota, for $49.7 million, subject to certain closing adjustments. We have purchased the wind-generated electricity from the Ashtabula III wind farm since 2013, pursuant to a purchase power agreement, and that agreement granted us the option to purchase the wind farm. The purchase is subject to certain customary closing conditions and regulatory approval, and will add 62.4 megawatts of capacity to our owned generation assets. We anticipate the transaction will close in January 2023.\n\n“Otter Tail Power filed its Integrated Resource Plan in September of 2021. The requests in the five-year action plan include the addition of dual fuel capability at our Astoria Station natural gas plant, the addition of 150 MW of solar generation in 2025 and the commencement of the process to wi...

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