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MDU Resources Reports 2012 Results

MDU Resources Group Inc. announced a consolidated loss for 2012 of $1.4 million, or 1 cent per common share, compared to 2011 earnings of $212.3 million, or $1.12 per share. Adjusted earnings were $216.8 million, or $1.15 per common share for 2012 compared to 2011 adjusted earnings of $225.2 million, or $1.19 per share.

The company reported a consolidated loss for the fourth quarter of $61.2 million, or 32 cents per share, compared to 2011 fourth quarter earnings of $60.8 million or 32 cents per share. Adjusted earnings were $76.0 million, or 40 cents per common share, compared to $73.9 million, or 39 cents per share in 2011.

“Our businesses are strong and our 2012 adjusted earnings reflect it,” said David L. Goodin, president and CEO of MDU Resources. “Our construction businesses are seeing markets improve with earnings growth of 47 percent compared to last year.”

The construction businesses reported their highest annual earnings since 2009 with 2012 earnings totaling $70.8 million, up $22.8 million from last year. The construction materials business saw an increase in the private construction market and a strengthening of markets in the Intermountain and North Central regions, as well as higher ready-mixed concrete and asphalt oil margins and volumes.

The construction services business also saw strong growth, with record earnings at its inside electric business in Oregon and its specialty equipment manufacturing and rental business. The combined construction business backlog at year-end was approximately $731 million, $39 million higher than a year ago. The exploration and production business, like many independent companies in the sector, uses the full-cost method of accounting. Under this method, the company is required to perform a quarterly ceiling test comparing its capitalized costs to the after-tax, discounted expected cash flow from its economic proved oil and natural gas reserves.

The company also reported:

  • Construction businesses post 47 percent earnings growth year-over-year.
  • Grew total liquids production 29 percent in 2012 – oil production, excluding natural gas liquids, up 36 percent.
  • Oil reserve replacement ratio of 267 percent.
  • Utility electric customer counts grew 9 percent in Bakken.
  • Substantial progress made on proposed diesel topping plant.