ORMAT Technologies, Inc. (NYSE: ORA) announced financial results for the quarter ended September 30, 2006. For the third quarter, total revenues were $77.8 million compared to $69.3 million for the same quarter in 2005, an increase of 12.4%.
Net income for the quarter ended September 30, 2006 was $13.9 million or $0.39 per share of common stock, as compared with net income of $12.3 million or $0.39 per share of common stock for the same quarter in 2005.
Ormat’s gross margin slid to 41.6% compared to 45.3% for the same quarter in 2005. Operating income for the quarter ended September 30, 2006 was $24.9 million as compared with $25.3 million for the same quarter in 2005. Gross margin was impacted by a reduction in Electricity Segment margins, which were lower due to the repair cost of the Puna wells and an increase in the operating costs, some of which were related to new power plants that came on line during the quarter but did not yet contribute fully to revenues.
Adjusted EBITDA for the quarter ended September 30, 2006 was $39.7 million as compared with $37.7 million for the same quarter in 2005.
For the nine months ended September 30, 2006, total revenues were $202.3 million, a 12.9% increase over total revenues of $179.2 million for the same period in 2005. Net income for the nine months ended September 30, 2006 was $30.2 million or $0.89 per common share as compared to $20.3 million, or $0.64 per share for the same period of 2005.
For the nine months ended September 30, 2006, the Company’s gross margin was 39.0% compared to 37.8% during the same period in 2005. Operating income for the nine months ended September 30, 2006 increased 10.0% to $55.1 million from $50.1 million for the same period in 2005.
Adjusted EBITDA for the nine months ended September 30, 2006 was $97.3 million as compared with $89.0 million for the same period in 2005.
As of September 30, 2006, the Company had cash, cash equivalents and marketable securities of $79.9 million compared to $70.5 million as of December 31, 2005. The increase in the Company’s cash position was principally due to the closing of the sale of 4,025,000 shares of common stock at $35.50 per share in a follow-on public offering (including the exercise of the underwriters’ over-allotment option) in April 2006, which resulted in net proceeds of approximately $135.1 million, as well as cash provided by operating activities of $55.2 million. Ormat used a portion of its cash position to fund capital expenditures in the amount of $114.9 million, an investment in Orzunil of $22.8 million, and the repayment of long-term debt in an amount of $35.3 million (including repayment of parent loan).
On November 7, 2006, Ormat’s Board of Directors approved the payment of a quarterly cash dividend of $0.04 per share, pursuant to the Company’s dividend policy, which targets an annual payout ratio of at least 20% of the Company’s net income, subject to Board approval. The dividend will be paid on December 13, 2006 to shareholders of record as of the close of business on November 30, 2006.
Commenting on the Company’s recent quarter results, Dita Bronicki, President and Chief Executive Officer, stated, “We had a good quarter and showed year-over-year gains in revenue in both Segments; growth in the Electricity Segment is expected to continue further with the addition of 250 MW expected to come on line in the three years until the end of 2008”.
“Revenues from our Products Segment were strong”, Mrs. Bronicki continued. “We continue to see growing interest in our recovered energy power generation technology. Over the quarter, we received from ENAGAS S.A. in Spain the first order from a European natural gas pipeline, for a recovered energy generation unit, which we plan to have installed by mid-2008.”
About Ormat Technologies
Ormat Technologies, Inc. is a vertically integrated company engaged in the geothermal and recovered energy power business. The Company designs, develops, builds, owns and operates geothermal power plants.
It also designs, develops and builds, and plans to own and operate, recovered energy-based power plants. Additionally, the Company designs, manufactures and sells geothermal and recovered energy power units and other power generating equipment, and provides related services. Ormat products and systems are covered by more than 70 patents. ORMAT currently operates the following geothermal power plants: in the United States — Brady, Desert Peak, Heber, Mammoth, Ormesa, Puna and Steamboat; in the Philippines — Leyte; in Guatemala — Zunil; in Kenya — Olkaria; and in Nicaragua — Momotombo.
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