Otter Tail (US:OTTR)2021-08-04 15:24Financial Performance & Guidance - Q2 2021 operating revenues increased to $2856 million from $1928 million in Q2 2020[8] - Q2 2021 net income increased to $421 million from $169 million in Q2 2020[8] - Q2 2021 diluted EPS was $101 compared to $042 in Q2 2020[8] - The company raised its 2021 diluted earnings per share guidance range to $350-$365 from $247-$262[8] - The midpoint of the new EPS guidance range is $103 higher than the midpoint of the previous range[8] Segment Performance - Electric Segment earnings increased by $21 million due to increased retail revenues and the commercial operation of Merricourt & Astoria Station being fully covered in rates[9] - Manufacturing Segment earnings increased by $55 million due to increased sales across all end markets and increased scrap metal revenues[9] - Plastics Segment earnings increased by $174 million, driven by higher pipe prices and improved operating margins due to PVC resin supply constraints[10] Strategic Initiatives & Investments - The company's target earnings contributions are 70-75% from the Electric platform and 25-30% from the Manufacturing platform[6] - Capital spending of $653 million is planned from 2021 to 2025, with $138 million (21%) allocated to renewable resource additions and $138 million (21%) to regional transmission additions and replacements[43, 44] - The Astoria Station natural gas plant, a 245-MW simple-cycle unit, was completed at a cost of $1525 million and committed in the MISO market on April 30, 2021[25, 26, 27] Cleaner Energy Future - By 2023, the company's customers will receive approximately 35% of their energy from renewable resources[19] - Carbon emissions from owned generation resources are targeted to be 50% lower than 2005 levels by 2025 and 97% below 2005 levels by 2050[19] - Otter Tail Power Company achieved a 43% reduction in CO2 emissions from 2005 to 2020[17]