MDU Resources Group reports earnings increase, tax benefit

With the discount of the company tax fee from 35 % to 21 % on Jan. 1, MDU’s development providers and supplies companies noticed $four.three million and $forty one.9 million in tax advantages respectively. The corporate incurred fees of $6.four million to its electrical and pure fuel utility firm and $200,000 to its pipeline enterprise, MDU said in its annual earnings launch.

Returns to clients might are available a variety of varieties but to be decided: both by way of refunds or modifications to present or future fee instances.

Firm leaders are gauging how tax reform might have an effect on their clients’ spending and, finally, MDU’s backside line.

The corporate’s 2017 earnings amounted to $280.four million, or $1.forty three per share, in comparison with 2016 earnings of $sixty three.7 million, or 33 cents per share, in a yr when the corporate was nonetheless reeling from losses at its former Dickinson diesel refinery. Within the fourth quarter of 2017, earnings have been $one hundred fifteen.three million, or fifty nine cents per share, in comparison with $sixty five.5 million, or 33 cents per share, in 2016.

“We’re very happy with our robust end to the yr, regardless of the profit we noticed from federal tax reform,” CEO David Goodin stated in a launch. “We had a very robust fourth quarter, with our development companies efficiently executing on tasks underneath favorable climate circumstances in October and November, and our regulated power supply companies benefiting from colder climate on the finish of the quarter …. In 2017, all our companies carried out very nicely, and we’re optimistic concerning the momentum we now have going into 2018.”

MDU benefited from 2 % larger electrical retail gross sales volumes and thirteen % greater pure fuel retail gross sales volumes. The corporate is predicted to buy the Thunder Spirit Wind Farm close to Hettinger later this month, bringing renewables to 27 % of its complete power manufacturing capability.

In its pipeline enterprise, MDU benefited from report pure fuel transportation volumes because of line expansions. The corporate has two extra expansions deliberate this yr — the $fifty five million to $60 million Valley Enlargement Venture and the $27 million to $30 million Line Part 27 enlargement undertaking — which can convey complete pure fuel capability to 1.eight billion cubic ft per day.

MDU’s development providers enterprise had report revenues of $1.37 billion. Going into 2018, the corporate has $708 million in backlogged work, forty nine % larger than 2016.

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