ORMAT Reports Q2 2007 Results

ORMAT Technologies, Inc. (NYSE: ORA) has announced financial results for the second quarter ended June 30, 2007.

For the second quarter of 2007, the Company reported total revenue of $84.1 million versus $64.1 million for the second quarter of 2006, an increase of 13.5% in the Electricity Segment and an increase of 87.3% in the Products Segment.

The gross margin in the Electricity Segment was 36.2%, similar to the second quarter of 2006, while the gross margin in the Products Segment was 15.6%, an increase compared to the first quarter of 2007 but lower than the second quarter of 2006. Gross margins in the Electricity Segment have returned to pre-first quarter levels; however, margin pressure in the Products Segment remains, as we continue to fulfill contracts for products that do not have built-in escalations.

Net income for the quarter was $8.5 million, or $0.22 per share, compared to $8.4 million, or $0.24 per share, in the second quarter of 2006. There were 38.3 million weighted average shares used in the computation of diluted earnings per share in the second quarter of 2007 and 35.3 million weighted average shares during the same period of 2006.

Commenting on the results for the quarter, Dita Bronicki, President and Chief Executive Officer of Ormat, stated, “As anticipated, we had a profitable quarter. During the quarter, we focused our attention on the growth of our business and made several important strides in our organic growth plan for the Electricity Segment, adding 24 MW to our generating capacity. Commercial operation was declared in our 10 MW Galena 2 project. We also completed the construction of additional Ormat Energy Converter (OEC) units in the Ormesa and Steamboat Hills projects that added approximately 14 MW of generating capacity to our portfolio.

“In addition, we declared commercial operation of our 11 MW Desert Peak 2 project. In support of our future growth, we secured important long-term power purchase agreements (PPAs) as follows: for new geothermal projects, the 50 MW North Brawley PPA and the 18-30 MW Grass Valley PPA, and for Recovered Energy Generation (REG) power plants, the 22 MW OREG 2 PPAs. In the Products Segment, as announced recently, we signed a new agreement to supply a REG facility to a cement plant in West Virginia. We continue to see positive momentum in our REG business since the beginning of the year, and believe that this will continue to generate significant revenue for us for years to come.”