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Ormat reports increase in revenues by 16% in Q3 2015

Ormat reports increase in revenues by 16% in Q3 2015 Don A. Campbell (formerly Wild Rose) plant of Ormat, Nevada, U.S. (source: Ormat Technologies)
Alexander Richter 4 Nov 2015

Ormat Technologies reports revenues of $163 million in Q3 2015, an increase of 16% compared to the same quarter last year.

In its financial report for the third quarter of 2015, Ormat reports an increase in revenues of 16%  to $162.9 million compared to the same quarter last year. The product segment revenues increased 73.9% to $65.6 million, compared to $37.7 million in the third quarter of 2014.  Electricity revenues were $97.2 million, compared to $102.5 million in the third quarter of 2014; reduction is mainly due to lower oil and natural gas prices offset by higher generation from new projects that came online.

Isaac Angel, chief executive officer of Ormat, stated, “This was a very strong quarter for Ormat, as our balanced business model enabled us to deliver 16% revenue growth and a 14% improvement in Adjusted EBITDA, overcoming headwinds related to oil and natural gas prices impacting our electricity segment. Our Product Segment delivered another strong quarter as we benefited from new contracts, including the EPC contract related to a geothermal project in Chile as well as progress in the Sarulla project in Indonesia.

During the quarter our Don A. Campbell Phase 2 plant reached commercial operation, just 10 months after we broke ground and six months ahead of schedule, doubling the generating capacity of the geothermal complex. This expansion, along with the contribution of our McGinness Hills power plant, drove a 10% increase in power generation. We continue to improve construction lead time and expect an earlier completion of plant 4 at the Olkaria 3 complex, which was initially expected in mid-2016 and currently planned to be completed in the first quarter of 2016.”

“We recently announced our collaboration agreement with Toshiba, the world’s leading supplier of geothermal steam turbines, to develop strategic opportunities for collaboration in the areas of geothermal power generation systems and related equipment,” continued Mr. Angel. “We view this agreement as the next major step in our stated goal to expand our presence in the geothermal space and ultimately target the larger renewable energy market. This collaboration will expand our addressable market, create incremental growth opportunities and further strengthen our leadership position.”

Guidance

Mr. Angel added, “We increase and narrow the range of our 2015 total revenue guidance and increase the adjusted EBITDA guidance. We expect total revenue of between $570.0 million and 585.0 million, though the composition to be more heavily weighted towards our product segment. We expect to see stronger performance of our product segment and expect revenue to be between $195.0 million and $205.0 million. For the electricity segment, we expect revenues to be between $375.0 million and $380.0 million. The Electricity segment revenue guidance assumes the continued impact of low oil and natural gas prices, which translates to approximately $28 million reduction in revenues compared to last year. We expect 2015 Adjusted EBITDA guidance of $282.0 to $292.0 million for the full year, which is also impacted by current oil and natural gas prices. We expect annual adjusted EBITDA attributable to minority’s interest to be approximately $13.0 million.”

Source: Ormat