Loading...
•
Dec 31, 2023
Otter Tail Q4 2023 Earnings Report
Otter Tail Corporation announced record annual earnings and increased quarterly dividend.
Key Takeaways
Otter Tail Corporation reported a strong Q4 2023, with increased operating revenues and net income. The corporation's board of directors increased the quarterly common stock dividend to $0.4675 per share.
Consolidated operating revenues increased 4.3% to $314.3 million.
Net income increased 37.5% to $57.8 million.
Diluted earnings per share increased 37% to $1.37.
Plastics segment net income increased $14.9 million primarily due to a 59% increase in sales volumes.
Otter Tail
Otter Tail
Otter Tail Revenue by Segment
Revenue by Segment
Electric Revenue
CapyFin.comManufacturing Revenue
CapyFin.comPlastics Revenue
CapyFin.com Forward Guidance
Otter Tail Corporation anticipates 2024 diluted earnings per share to be in the range of $5.13 to $5.43.
Positive Outlook
- Normal weather conditions in 2024.
- Returns generated from an increase in average rate base of 8.5% in 2024, compared to 2023.
- Interim revenue increase, which commenced January 1, 2024, resulting from the general rate case filed in North Dakota.
- Lower operating and maintenance expenses driven by lower anticipated employee benefit cost and discretionary spending.
- Higher sales volumes and favorable product mix, improved productivity and lower incentive costs at BTD, partially offset by continued cost pressures in the business.
Challenges Ahead
- Product pricing pressures and increased manufacturing cost at T.O. Plastics driving a decline in earnings in 2024.
- Anticipated margin compression resulting from a continued downward trend in product prices over the course of 2024.
- Increased depreciation expense resulting from our capital expenditures.
- Increased interest expense from increased borrowings to fund our capital investments.
- Lower anticipated market-based gains on our corporate investments.
Revenue & Expenses
Visualization of income flow from segment revenue to net income