Ormat Technologies reports 17% in revenue growth for 2011

Steamboat Springs plant of Ormat, Nevada (source: Commons/ Wikimedia)

Alexander Richter 24 Feb 2012

Geothermal developer and technology provider Ormat Technologies reports annual results for 2011 and an increase in total revenues of 17% to $437 million, with a product revenues increase of 39% and accounting for about 25% of total revenues. Electricity revenues increased by 11.0 percent to $323.8 million, up from $291.8 million in the year ended December 31, 2010.

The 2011 results include a non-cash tax-related valuation allowance in the amount of approximately $61.5 million, which was recorded against the company’s U.S. deferred tax assets.

Realization of these deferred tax assets is dependent on generating sufficient taxable income in the U.S. prior to the expiration of the tax credits. An analysis was performed in order to confirm the ability of the company to realize deferred tax assets, and it was determined that a valuation allowance of $61.5 million against the U.S. tax assets as of December 31, 2011 is required. Although a valuation allowance is recorded against these deferred tax assets, no economic loss has occurred as the underlying net operating loss carryforwards and other tax credits remain available to reduce future U.S. taxes to the extent income is generated.

Commenting on the results, Dita Bronicki, Chief Executive Officer of Ormat, stated: “2011 was highlighted by major improvements in most operational areas of the company: 26 MW added capacity in Tuscarora and Puna, an increase in EBITDA at almost all of our operating plants, and strong performance of the product segment contributed to the 17 percent growth in total revenues. Product segment revenues in 2011 grew 39 percent, and we forecast an additional 40 percent increase for 2012. Cash flows from operations and new financing secured in 2011 provide us with sufficient cash to support our capital expenditure program for 2012.”

“We made important progress in our construction projects including the 30 MW McGinness Hills project where the field development has been completed, and the 36 MW expansion to the Olkaria project where 75% of the geothermal production is already secured,” continued Dita Bronicki. “Lease acquisition and greenfield development remain key to our long-term objectives. In 2011, we added 346,000 acres and our exploration land portfolio totals over 675,000 acres. Our exploration efforts continue, and we added new prospects in Chile, New Zealand and the U.S. We currently have 42 prospects in various stages of exploration. Going into 2012, we have the largest ever product backlog in Ormat’s history.”

“And finally, in terms of our future outlook, based on current SRAC forecasts, we expect our 2012 electricity revenues to be between $315 and $330 million, and between $150 and $165 million from our product segment.”

For the full release and details see link below.

Source: Company release via Bradenton