Ormat reports Q2 results with 20% total revenue increase
Galena 2 plant, United States (source: Ormat)
Alexander Richter
14 Aug 2013
Ormat Technologies releases financial results for the second quarter of 2013 reporting a growth in total revenues of 20.5% and an EBITDA increase by 37.3%, as well as an increase to a total generating capacity to 595 MW.
In a release last week, Ormat Technologies, Inc. (NYSE: ORA) announced its financial results for the second quarter of 2013.
As part of the release the company also provided an update on all its activities.
Ormat increased its electricity generation by 12.9% to 1.1 million MWh, driven by new capacity coming on line at Olkaria III Plant 2 in Kenya and McGinness Hills in Nevada. It exceeded the expected capacity in both McGinness Hills and Olkaria III complex which are contributing additional 6 MW, bringing the total generating capacity to 595 MW.
The company also accelerated the handover of the 22 MW Momotombo power plant in Nicaragua that was scheduled for mid- 2014, signed the Sarulla project agreements and secured our role as a supplier for approximately $254 million of equipment in Indonesia, and signed a 20-year PPA with Southern California Public Power Authority (SCPPA) for its 16 MW Wild Rose project in Nevada
Commenting on the results, Dita Bronicki, Chief Executive Officer of Ormat, stated: “We are pleased with the good operational performance and the strong financial results achieved this quarter. In the electricity segment, our focus on prudently expanding generation capacity is paying off as reflected in the results. In May 2013, we commenced commercial operation of the 36 MW Olkaria III Plant 2 in Kenya. The addition of Olkaria combined with the impact of McGinness Hills, which commenced operations in July 2012, drove a 12.9% year-over-year increase in generation capacity in the quarter. As we increase capacity, we are also improving operational efficiencies at our plants attaining a gross margin of 33.1%.”
“In the product segment a greater progress in a number of contracts resulting in exceptionally strong quarterly revenues. Our backlog remains strong and stands at approximately $170 million with approximately $90 to $100 million for recognition in 2014.”.
Ms. Bronicki added, “For the full year 2013, we are updating our electricity segment guidance, in light of the sale of the Momotombo plant, which reduced our expected revenues for the full year by $11.0 million. We expect the electricity segment revenues to be between $325 million and $335 million. In the product segment we are increasing our guidance to be between $185 million and $195 million. The total revenue for the full year 2013 is expected to be between $510 million to $530 million.
For its financials the company provides the following highlights compared to the same quarter last year:
- Total revenues grew 20.5%
- Product revenue grew 44.9% and reached $65.0 million
- Electricity revenue grew 7.1% and reached 87.7 million
- Operating income grew 55.3% to $37.9 million
- Net income attributable to the Company’s shareholders amounted to $25.2 million or $0.55 per share compared to $8.6 million or $0.19 per share; Net income attributable to the Company’s shareholders, excluding a $3.6 million after-tax gain related to oil and gas derivative instruments and a $3.6 million after-tax gain on the sale of the Momotombo plant in Nicaragua, was $18.0 million compared to $4.8 million or $0.41 per share compared to $0.11 per share.
- EBITDA grew 37.3% to $69.7 million
For full details of the press release, see link below.
Source: Ormat release
