©Reuters.
FERGUS FALLS, Minnesota – Otter Tail (NASDAQ:) Corporation (NASDAQ:OTTR) released financial results for the quarter and year ended December 31, 2023. The company reported a 4% increase in profit consolidated net income to $294.2 million and an increase of 3 Percentage increase in diluted earnings per share to $7.00 for the year. However, operating revenue fell 8% to $1.3 billion compared to 2022.
Electric segment earnings grew 6%, driven by the recovery in base-rate investments and increased commercial and industrial sales. The manufacturing segment saw a modest increase, while the plastics segment’s earnings fell 4% due to lower sales volumes, although it continued to perform strongly compared to pre-2021 levels.
Otter Tail Power completed the acquisition of Ashtabula III, a 62 MW wind farm, and launched Hoot Lake Solar, a 49 MW solar project, in 2023. The electric segment’s updated five-year capital expenditure plan amounts to $1.3 billion, with the goal of an increase of 7.7%. growth of the compound annual base rate.
The board of directors increased the quarterly dividend on common stock by 7% to $0.4675 per share for 2024, up from $1.75 per share in 2023. The company ended the year in a strong financial position, with $479.8 million in total available liquidity.
The company forecasts an indicative diluted earnings per share range of $5.13 to $5.43 for 2024, reflecting expected growth in the electrical segment and a decline in earnings in the plastics segment due to a downward trend in resin sales prices and spreads.
Otter Tail Corporation’s cash provided by operating activities reached a record $404.5 million in 2023, primarily due to increased net income and decreased pension plan contributions. The company’s capital expenditures were $287.1 million, primarily for investments in the electric segment.
This article was generated with the support of AI and reviewed by an editor. For further information please see our T&Cs.