Ormat’s Q1 2010 results hit by plant problems
Steamboat Springs plant of Ormat, Nevada - not related to story (source: Commons/ Wikimedia)
Alexander Richter
6 May 2010
In a release on its Q1 results for 2010, Ormat Technologies says it is hoping that new development leases and fixes to two of its geothermal power plants will improve its financial results later in the year.
Reported from the U.S., “Ormat Technologies is hoping that new development leases and fixes to two of its geothermal power plants will improve its financial results later in the year.
The company posted its latest figures today, for the first quarter of the year up to March 31, showing a 16.7% drop in its total revenues compared to the same period in 2009.
The slide from a $99.3 million revenue to $82.7 million revenue for the quarter was partly explained by “exceptional” sales of geothermal and heat recovery equipment made last year, when the company posted record results.
But this year the company based in Reno, Nevada, has been hit by problems at its Puma and North Brawley geothermal plants in Hawaii and California respectively.
Ormat’s net income was $1.8 million – or $0.04 per basic share – down from the $14.5 million ($0.32 per share) seen in Q1, 2009.
Nevertheless, electricity generating revenues increased 6.5% to $66.1 million for the quarter, giving the company optimism for growth from the second quarter of 2010.
Ormat increased its electricity generation at all of its power plants apart from Puna, it said, while revenues were also assisted by a slight rise in electricity rates from $71 per MWh in Q1, 2009 up to $72 per MWh in the most recent three months.
Revenues from product sales were $16.5 million, compared to $37.3 million in Q1, 2009.
Dita Bronicki, Ormat’s Chief Executive Officer, said: “Electricity Segment revenues increased 6.5% as a result of an increase in generation to approximately 918,000 MWh from 876,000 MWh last year. The increase in generation is the result of additional capacity and solid performance from all facilities other than North Brawley and Puna.”
Ms Bronicki said her company had expected the first half of 2010 to be “challenging” owing to the success in its products division last year, as well as lower revenues from Puna and North Brawley.
We expect revenues to improve in the second quarter” – Dita Bronicki, Ormat Technologies
But she went on: “Based on the progress that was made in repair work in Puna, we expect revenues to improve in the second quarter. In North Brawley, we expect generation to ramp up towards the end of the year.”
Further improvements in Ormat’s performance are expected with a revision to the company’s Energy Sales Contract at a geothermal project in Indonesia and through he acquisition of a project in Nevada during March (see this BrighterEnergy.org story).
Ms Bronicki said the company had also leased new land for development in the US, close to existing geothermal prospects, “which brings our total leases for exploration to approximately 300,000 acres”.
Commenting on the outlook for 2010, Ms Bronicki said: “We continue to expect 2010 Electricity Segment revenues of $275 million to $285 million. We also expect an additional $9 million of revenues from our share of electricity revenues generated by a subsidiary, which is accounted for under the equity method. 2010 Product Segment revenues are expected to be between $75 million and $85 million.”
Source: Brighter Energy
