Ormat Technologies, Inc. (NYSE: ORA), a leading geothermal power company, announced static profit levels for 3Q08.
For the three month period ended September 30, 2008, total revenues
were $99.7 million, an increase of 25.5% from $79.5 million in 3Q07, consisting of a 12.1% increase in revenues from
the Electricity Segment and a 71.0% increase in the Products Segment.
For the quarter, the company reported net income of $15.9 million,
or $0.35 per share of common stock (basic and diluted), as compared to
net income of $15.8 million, or $0.41 per share for the same period a year ago. There were 45.5 million
weighted average shares used in the computation of diluted earnings per
share in 3Q08 and 38.3 million weighted average
shares for the same quarter in 2007.
Despite the significant increase
in revenues, net income remained at a level similar to last year’s
primarily due to two factors: the weakening of the US dollar impacting
activity outside the U.S. and non-recurring consulting and legal
expenses related to an acquisition which did not materialize.
"The increase in total revenue of 25.5% for the quarter reflects the continued growth of our company. Revenue from the Products Segment in the third quarter increased 71% in line with our expectation for the year," Dita Bronicki, CEO of Ormat, said. "We also continued to increase our energy generation and moved closer to commercial operation of Phase II of the Olkaria III and North Brawley power plants. We expect to end the year with approximately 500 MW in our operating portfolio, an increase of approximately 100 MW for the year. For 2009 we expect an additional increase of approximately 70 MW, for which we have committed financing in place."
Bronicki added, "The predictable cash flow from our fully contracted capacity, together with existing committed credit lines, allows us to continue executing on our growth plans despite the turbulent times within the global economic system."
Electricity revenues for the third quarter of 2008 were $68.8 million, an increase of 12.1%. The increase in electricity revenues is primarily attributable to a net increase in domestic generating capacity to 508,141 MWh for the quarter, up from 501,389 MWh in the same period of 2007.
Revenues from the Products Segment for the three-month period ended September 30, 2008 were $30.9 million, compared to $18.1 million in the same period in 2007, an increase of 71.0%. The increase in product revenues was primarily attributable to the timing of the receipt of purchase orders, and the timing of revenue recognition.
Cash, cash equivalents and marketable securities as of September 30, 2008 decreased to $38.1 million from $60.7 million as of December 31, 2007. In addition, the company has committed bank lines of credits aggregating $310 million as of today.
On November 5, 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 December 1, 2008 to shareholders of record as of the close of business on November 19, 2008.
Commenting on the outlook for 2008, Ms. Bronicki said, "With regard to our Electricity Segment, following our third quarter earnings results, we maintain our guidance for 2008 and expect electricity segment revenues for 2008 to be approximately $250 million. We also expect additional revenues of approximately $9 million from our share of electricity revenues generated by the Mammoth plant, the investment in which is accounted for under the equity method. Given our Products Segment results for the third quarter, we now anticipate revenues in this segment of between $75 and $80 million for the year being at the high end of previous guidance."
About Ormat Technologies
Ormat Technologies, Inc. is the only vertically-integrated company primarily engaged in the geothermal and recovered energy power business. The Company designs, develops, owns and operates geothermal and recovered energy-based power plants around the world. Additionally, the Company designs, manufactures and sells geothermal and recovered energy power units and other power-generating equipment, and provides related services. The Company has more than four decades of experience in the development of environmentally-sound power, primarily in geothermal and recovered-energy generation. 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; in Nicaragua–Momotombo; and in New Zealand–GDL.
Loading...