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Mar 31, 2021
Otter Tail Q1 2021 Earnings Report
Announced first quarter earnings with EPS increasing 22% and increased 2021 earnings per share guidance.
Key Takeaways
Otter Tail Corporation announced strong first quarter results, with consolidated net income increasing 25.0% to $30.3 million, driven primarily by the Plastics segment. Diluted earnings per share increased 21.7% to $0.73. The corporation increased its 2021 diluted earnings per share guidance range to $2.47 to $2.62.
Consolidated operating revenues increased 11.5% to $261.7 million.
Consolidated net income increased 25.0% to $30.3 million primarily driven by strong Plastics segment performance.
Diluted earnings per share increased 21.7% to $0.73 per share.
Increased 2021 diluted earnings per share guidance range to $2.47 to $2.62.
Otter Tail
Otter Tail
Otter Tail Revenue by Segment
Revenue by Segment
Electric Revenue
CapyFin.comManufacturing Revenue
CapyFin.comPlastics Revenue
CapyFin.com Forward Guidance
The corporation is increasing its 2021 diluted earnings per share guidance range to $2.47 to $2.62, driven by expected performance in the Plastics Segment. The Electric segment is expected to provide approximately 68% of consolidated earnings.
Positive Outlook
- Merricourt and Astoria Station projects being commercially operational and fully reflected in rate base.
- Recovery mechanism in place in all three jurisdictions for Merricourt and Astoria Station.
- Impact of filed Minnesota 2021 rate case with an approved interim rate increase of 3.2% or $6.9 million in annual revenues.
- Expected increase in sales at BTD driven mostly by improving end markets.
- Sales prices of PVC pipe in the first quarter were higher than expected and are expected to continue to be higher throughout the year.
Challenges Ahead
- Unfavorable weather in the first quarter negatively impacted first quarter earnings by $.04 per share.
- Commercial and Industrial revenues are expected to be lower based on continuing impacts from COVID-19.
- The level of self-funded interconnection interim projects revenue is pending FERC approval.
- Lower levels of capital expenditures and lower transmission revenue requirements resulting in a lower level of earnings than originally expected
- Increased non-labor operating and maintenance expenses related to a planned outage at Big Stone Plant of $3.9 million in 2021 and increased postretirement expense caused by a decrease in the discount rate and long-term rate of return on plan assets.
Revenue & Expenses
Visualization of income flow from segment revenue to net income