Ormat has bypassed market forecasts


Ormat Technologies concludes the second quarter with a decrease of 5% in revenue and 32.1% in net profit – Ormat’s share in New York climbed 2.7% in late trading after the publication of the report.

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The geothermal energy company’s revenue was $ 174.9 million in the quarter, compared to $ 184.1 million in the same quarter last year. Above the market forecast which set the revenue range at $ 160.1-173.8 million.

Revenue from electricity sales fell 0.3% to $ 128.7 million. The rest of the operating segments showed a decrease in revenue: sales of the products decreased by 16% to $ 43.7 million, and storage of electricity and management services decreased by 15% to $ 2.5 million. Oma’s operating profit was $ 48 million, compared to $ 46.8 million in the same quarter last year. God-EBITDA Stood at $ 96.3 million compared to $ 92 million in the same period last year.

Accounting profit (GAAP) attributable to shareholders was $ 23 million or 45 cents per share, compared to $ 33.9 million or 66 cents per share in the same quarter last year – a decrease of 32.1%. The company notes that the difference is due, among other things, to a one-time tax benefit of $ 13.3 million that had a positive effect on the net profit of the second quarter last year. Adjusted earnings (NON GAAP) for the quarter were $ 23 million or 45 cents a share, compared to $ 20.6 million or 40 cents a share in the same period last year. This is when the market set the earnings forecast in the range of 36-39 cents per share.

Doron Belsher, CEO of Ormat Technologies

Doron Belsher, CEO of Ormat, said after the publication of the report: “We are taking and taking all necessary steps to reduce the impact of the corona on the company’s operations and so far we have not seen a material impact on the results. However, it is possible that in the future, as the epidemic continues, there will be additional effects on activity.

The products sector is currently on track to achieve its revenue target for 2020 even though signing new contracts for significant projects is delayed due to the effects of the epidemic. Since March 31, 2020, we have increased our liquidity volume by more than $ 400 million through long-term debt raising, which allows us greater flexibility in the distribution of the company’s resources and the expansion of the electricity sector’s production capabilities. We are stepping up and focusing our efforts on the exploration and development of projects in the electricity sector with the aim of accelerating our organic growth in the US and beyond in 2023 and beyond.

The company reduced its top revenue range for the current year and set it at $ 725-710 million compared to $ 740-710 million in the previous forecast. And slightly below analysts’ expectations of the company, which set the range at $ 728.3-709.8 million. The company also expects adjusted EBITDA to be in the $ 400-410 million range. Ormat presented cash and cash equivalents in the amount of $ 173.1 million as of the end of the second quarter of 2020, compared to $ 71.1 million at the end of the corresponding quarter last year.

Ormat Tech is controlled by the Japanese corporation Orix (21.52%) and is owned by the Vanguard Funds (7.79%) and Blackrock (6.96%) and the insurance companies Clal (6.2%) and Migdal (5.48%). Along with the publication of the report, Ormat announced that on September 1 this year it will distribute a quarterly dividend of 11 cents per share, for a total of $ 5.6 million. The company, which is traded on the Tel Aviv and New York US stock exchanges at a value of $ 3.03 billion – Ormat shares have fallen by 23.24% since the beginning of the year.


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