Ormat announces record revenues and up to 190MW of new geothermal by the end of 2018

Las Pailas plant, Costa Rica (source: Ormat)
Francisco Rojas 24 Feb 2016

Ormat makes public record revenues and the plans to "to add 160 to 190 megawatts by the end of 2018 by bringing new plants online, expanding existing plants as well as adding capacity " according to Mr. Isaac Angel

In a press release published yesterday, Ormat Technologies, Inc. announced record financial results for the fourth quarter and full year ended December 31, 2015.

Financial highlights for the full year:

  • Total revenues of $594.6 million in 2015, an increase of 6.3% from 2014;
  • Product segment revenues reached record levels of $218.7 million in 2015 from $177.2 million in 2014 representing a 23.4% increase;
  • Electricity segment revenues decreased 1.7% to $375.9 million in 2015 from $382.3 million in 2014, mainly related to lower oil and natural gas prices
  • Electricity generation increased 8.6% to 4.8 million MWh
  • Gross margin increased to 36.7% in 2015 compared to 36.4% in 2014;
  • Operating income grew 14.3% to $164.1 million in 2015 from $143.5 million in 2014;
  • Adjusted EBITDA grew 6.8% to $291.3 million in 2015;
  • Net income attributable to the company’s shareholders, increased 120.7% compared to 2014 and reached $119.6 million, or $2.43 per diluted share in 2015 (*);
  • Net income attributable to the company’s shareholders excluding the non-recurring tax benefit recorded in the third quarter (1), was $70.9 million, or $1.44 per diluted share in 2015;
  • Total book equity exceeded $1 billion; and
  • Declared a quarterly dividend of $0.31 per share for the fourth quarter of 2015.

Operational and business developments for the full year:

  • Commenced commercial operation of three new power plants with an aggregate capacity of over 90 MW. All three plants were constructed and started operating ahead of planned schedule, including:
    • Plant 4 in Olkaria III in Kenya, expanding complex capacity to nearly 140 MW in January 2016;
    • Phase 2 of Don A. Campbell geothermal power plant in Nevada came on line in September 2015. The complex annual generating capacity increased to approximately 41 MW following the commencement of Phase 2; and
    • Phase 2 of the McGinness Hills geothermal power plant in Nevada came on line February 2015 and increased the complex’s generating capacity to approximately 83 MW;
  • Heber 1 geothermal power plant started selling power under a new PPA with an average fixed energy price of $85.62, reducing our portfolio exposure to natural gas price fluctuations to approximately 90 MW;
  • Commenced construction of the 35 MW Platanares geothermal project in Honduras;
  • Signed MOU to acquire 85% of the Bouillante geothermal power plant in the Island of Guadeloupe;
  • Signed a strategic collaboration agreement with Toshiba Corporation to develop opportunities in the areas of geothermal power generation systems and related equipment;
  • Closed and received $162.3 million cash from Northleaf Capital Partners for a 36.75% equity investment in certain power plants;
  • Closed $42 million loan agreement for the Amatitlan power plant in Guatemala;
  • Signed an approximate $100.0 million EPC contract in Chile; and
  • Completed a share exchange transaction with Ormat Industries Ltd.

“We executed well in 2015, delivered strong financial results and made significant progress on our long-term growth strategy positioning us well for continued success in 2016 and beyond,” noted Isaac Angel, Chief Executive Officer. “Our methodical efforts to improve operational efficiency, expand profit margins, and diversify revenue are progressing well and driving record financial results. During 2015, our product segment grew significantly, balancing headwinds in our electricity segment mainly related to lower oil and natural gas prices. We entered 2016 with strong momentum and we believe we are well positioned for continued success and expect to achieve profitable growth as well as expand opportunities around the world for both our operating segments, including as a result of our collaboration with Toshiba.”

“We have a plan to add 160 to 190 megawatts by the end of 2018 by bringing new plants online, expanding existing plants as well as adding capacity from the recent acquisition,” continued Mr. Angel. “As part of this expansion plan, we recently began development efforts in two sites in Nevada. These two projects, Tungsten Mountain and Dixie Meadows, are each expected to generate 25 to 35 MW once they come online in 2017 or 2018. We have drilled several exploration wells at both sites, and while drilling activity is ongoing, we are making progress towards securing PPAs. We believe that these projects may qualify for production tax credits.”

“In 2015, we took action to increase shareholder value by completing the Northleaf and restructuring transactions,” continued Mr. Angel. “We continue to enhance all aspects of Ormat’s value chain to improve our performance as well as to progress with near and long-term initiatives in our core geothermal business and in new activities to provide long-term sustainable growth. I am encouraged by our progress in the last year, and as we progress in each of our key initiatives, we are setting our intermediate and long-term strategies.”

To read the full press release, please follow the link:

Source: Ormat