MDU Resources Group Inc. reported second quarter earnings of $100.2 million, or 50 cents per share, compared to second quarter 2020 earnings of $99.7 million, or 50 cents per share. For the six months ended June 30, MDU Resources earned $152.3 million, or 76 cents per share, compared to $124.8 million, or 62 cents per share, in 2020.
“All our business lines continue to see strong results,” said David L. Goodin, president and CEO of MDU Resources. “We had record second quarter earnings at our construction services business and near-record results at our construction materials business. Our regulated energy delivery businesses also continue to see solid customer demand. Our second quarter results were impacted by higher stock-based compensation and increased health care costs totaling approximately $4.2 million, after tax. We continue to expect earnings per share to be in the range of $2.00 to $2.15 for 2021.
“We are excited to have construction underway on our North Bakken Expansion project and, with favorable weather, expect it to be in service by the end of the year. We just announced a natural gas pipeline expansion project in eastern North Dakota that will allow our utility company to fulfill higher customer demand in Wahpeton while also extending service to Kindred. We also are pleased to see Congress continue working toward an infrastructure funding package. All our operations, particularly our construction businesses, are well-positioned to capitalize on these opportunities and create superior shareholder value as we continue building a strong America.”
The construction materials business earned $51.4 million in the second quarter, compared to last year’s record second quarter earnings of $53.0 million. The decrease in earnings was largely from higher labor-related costs, including increased stock-based compensation and health care costs.
The construction materials business continues to see strong pricing and demand for its materials and contracting services, particularly in the Northwest. The construction materials backlog of work at June 30 was $912 million, compared to $875 million at June 30, 2020.
The construction services business had record second quarter revenue and earnings. Revenue increased 6% and earnings were $28.9 million, following on last year’s record second quarter earnings of $27.9 million.
The increase in earnings was primarily from continued strong demand across the commercial and industrial space, particularly the manufacturing industry, as well as increased sales and rentals of the power line equipment the company manufactures. The construction services backlog of work at June 30 was a record $1.32 billion, compared to $1.31 billion at June 30, 2020.