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Ormat Technologies reports strong revenue growth for Q3 2012

Desert Peak plant, Ormat (source: Ormat)
Alexander Richter 7 Nov 2012

Ormat Technologies reports an increase in revenues of 23% to $136 million for the third quarter of 2012 over the same period last year, but has to report a net loss due to a write-down of one of its power plants.

Ormat Technologies reports an increase in revenues of 23% to $136 million for the third quarter of this year. Product revenue more than doubled to $54.7 million for the third quarter. At the same time electricity revenue fell 6.2% to $81.5 million.

The company though had to make a write-down of $7.3 million on the Oreg 4 power station to a fair value of $3.6 million. The reason is that it was tested for recoverability due to continued low output. Therefore the company had to post a net loss for the third quarter of $582,000 compared with a net profit of $1 million for the same period last year.

At the same time the CEO of Ormat, Yehudit Bronicki, raised the “company’s full-year guidance from $165-175 millon to $175-180 million, but reiterated the guidance for electricity revenue of $325 million. This is much below analyst consensus of earnings per share on a total revenue of $501 million. ”

Currently, Ormat has reserves of $40.5 million (cash, cash equivalent and short-term bank deposits), as well as bank credit lines of $487.2 million, of which $84.5 million is unused.

The company currently has a market capitalization of $909 million on the NYSE.

Source: Globes Israel