Geothermal company Ormat Technologies, Inc. (NYSE: ORA) announced increases in quarterly and yearly revenues of 6% and 10% respectively.
For the 4Q07, total revenues were $70.6 million, an increase of 6.0% over 4Q06. Electricity Segment revenues for the quarter increased 19.2% over 4Q06. Net income for the quarter was $8.9 million compared to $4.2 million in 4Q06.
For the year ended December 31, 2007, total revenues were $296.0 million, a 10.0% increase over total revenues of $268.9 million for the year ended December 31, 2006. Net income for FY07 was $27.4 million compared with $34.4 million for FY06.
"The strong performance experienced by us beginning in the second quarter continued into the fourth quarter," said Dita Bronicki, President and CEO of Ormat. "We added 44 MW of new capacity to our ownership portfolio in 2007 and started the year 2008 with an additional 17 MW from our Galena III project out of a total of 128 MW we expect to add in 2008. Other significant achievements of last year include securing substantial land positions for future development, extensive exploration activity in a number of geothermal sites, and entering into new power purchase agreements for five projects that may add up to 256 MW of new capacity, our largest addition of PPAs in one year. These achievements contribute to maintaining our growth momentum."
On February 26, 2008, Ormat’s Board of Directors approved the payment of a quarterly cash dividend of $0.05 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 March 27, 2008 to shareholders of record as of the close of business on March 14, 2008. The company expects to pay a dividend of $0.05 per share in the next three quarters.
Electricity Segment revenues for the fourth quarter of 2007 were $55.5 million, an increase of 19.2% as compared to $46.6 million during the same quarter in 2006.
Products Segment revenues for the fourth quarter of 2007 were $15.1 million, a decrease of 24.8% as compared to $20.1 million for the same quarter in 2006.
Net income for 4Q07 was $8.9 million, or $0.22 per share of common stock (basic and diluted) compared with net income of $4.2 million, or $0.12 per share of common stock (basic and diluted) for 4Q06.
Electricity Segment revenues for FY07 were $216.0 million, an increase of 10.5% as compared to $195.5 million for FY06.
Products Segment revenues for FY07 were $80.0 million, an increase of 8.8% as compared to $73.5 million for FY06.
Net income for FY07 was $27.4 million ($0.71 per share of common stock – basic and $0.70 per share of common stock – diluted) compared with net income of $34.4 million ($1.00 per share of common stock – basic and $0.99 per share of common stock – diluted) for FY06.
Net income for the year ended December 31, 2007 includes $1.2 million, or $0.03 per share (basic and diluted), of unrealized other than temporary loss related to certain auction rate securities, as described below. In the years ended December 31, 2007 and 2006, there were 38.9 million and 34.7 million weighted average shares, respectively, used in the computation of diluted earnings per share.
As of December 31, 2007, the company had cash, cash equivalents and short- term marketable securities of $60.7 million compared to $116.7 million as of December 31, 2006. The company said this decrease is principally due to its use of $216.4 million of cash resources to fund capital expenditures and $131.8 million to repay long-term debt to to third parties (including the $50.7 million capital note on December 3, 2007) during 2007.
The decrease in cash resources was partially offset by the $137.2 million net proceeds from the sale of 3,000,000 shares of common stock in October 2007.
The decrease in the Company’s cash, cash equivalents and short-term marketable securities is also partially due to the deterioration in the market for auction rate securities, the company said.
Commenting on the outlook for 2008, Ms. Bronicki said, "We expect our 2008 Electricity Segment revenues to be approximately $245 million. We also expect an additional $9 million of revenues from our share of electricity revenue generated by a subsidiary, which is accounted for under the equity method. With regard to our Products Segment, we currently expect that our 2008 revenues will be between $70 million and $80 million."
About Ormat Technologies, Inc.
Ormat Technologies, Inc. is a vertically integrated company primarily engaged in the geothermal and recovered energy power business. The company designs, develops, builds, owns and operates geothermal and 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 and recovered energy-based power plants: in the United States – Brady, Heber, Mammoth, Ormesa, Puna, Steamboat and OREG 1; in Guatemala – Zunil and Amatitlan; in Kenya – Olkaria; and in Nicaragua – Momotombo.
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