Nevada-based geothermal power producer Ormat Technologies posts Q2 net income of US$8.2M compared with net loss of US$1.5M a year ago as revenues grow 9% to US$104.6M, including 18% increase in electricity revenue to US$81.2M
August 4, 2011
– Q2 net income of $8.2 million with increased total revenues of $104.6 million
Product backlog reached $225 million
Ormat Technologies, Inc. (NYSE: ORA) today announced financial results for the second quarter of 2011.
• 18 percent increase in electricity revenues;
• 11 percent increase in electricity generation; and
• the largest product order which led to a record high backlog.
Commenting on the results, Dita Bronicki, Chief Executive Officer of Ormat, stated, “The second quarter was highlighted by strength in electricity operations. The good performance of most of our plants translated into growth in generation and in revenues from electricity, which increased to $81.2 million.
“We successfully secured new contracts for the supply of geothermal power plants and other power generating units. During the quarter we received a supply and engineering, procurement and construction (EPC) contract from New Zealand, which has a collective value of approximately $130 million. This represents the largest product order in our company’s 46-year history, and, as a result, the product backlog increased to approximately $225 million.
“During the quarter, we also have made additional progress toward diversifying our future development portfolio by entering into a build, operate and transfer (BOT) agreement with Tikitere Geothermal Power Limited (TGL) to explore, develop, supply, construct, own and operate a 45 MW geothermal power plant in New Zealand.”
Second Quarter ResultsFor the three months ended June 30, 2011, total revenues were $104.6 million, compared to $96.3 million in the second quarter of 2010. Electricity revenues increased by 18.0 percent to $81.2 million, up from $68.8 million in the second quarter of 2010. Electricity revenues in the quarter include $4.8 million relating to our North Brawley power plant with corresponding cost of revenues of $10.4 million. Total generation increased by 11.2 percent and the average revenue rate of electricity operations was $83 per MWh, up from $78 per MWh in the second quarter of 2010. Product revenues for the three months ended June 30, 2011 were $23.4 million, compared to $27.5 million in the same period in 2010. Product revenues in the quarter include $7.9 million relating to an experimental REG plant in an LNG terminal in Spain.
For the quarter, the company reported net income of $8.2 million, or $0.18 per share (basic and diluted), compared to a net loss of $1.5 million, or $0.03 per share (basic and diluted) for the same period a year ago. The increase is principally attributable to the increase in the gross margins of both our electricity and product revenues.
Adjusted EBITDA for the second quarter of 2011 was $47.7 million, compared to $24.0 million in the same quarter last year. Adjusted EBITDA includes consolidated EBITDA and the company’s share in the interest, taxes, depreciation and amortization related to its unconsolidated 50 percent interest in the Mammoth complex in California in the three months ended June 30, 2010. The reconciliation of GAAP net cash provided by operating activities to Adjusted EBITDA as well as additional cash flow information is set forth below.
As of June 30, 2011, cash, cash equivalents and marketable securities were $67.4 million. In addition, as of June 30, 2011, the company had available committed lines of credit with commercial banks aggregating $407.5 million, of which $196.0 million is unused.
On August 3, 2011, Ormat’s Board of Directors approved the payment of a quarterly dividend of $0.04 per share pursuant to the company’s dividend policy, which targets an annual payout ratio of at least 20 percent of the company's net income. The dividend will be paid on August 25, 2011 to shareholders of record as of the close of business on August 16, 2011. The company expects to pay a dividend of $0.04 per share in the next quarter.
Commenting on the outlook for 2011, Bronicki said, “We continue to expect 2011 electricity revenues to total $315 to $325 million. We are maintaining our product revenues guidance to be $90 to $100 million.”
Six-Month ResultsFor the six months ended June 30, 2011, total revenues were $202.4 million, an increase of 13.1 percent from $178.9 million in the same period last year. Net loss for the period was $0.7 million, or $0.02 per share (basic and diluted), compared to net income of $0.3 million, or $0.01 per share (basic and diluted), in the same period in 2010.
Electricity revenues for the six months ended June 30, 2011 were $159.5 million, compared to $134.9 million in the same period a year ago, an increase of 18.2 percent. Product revenues for the first six months of 2011 were $43.0 million, compared to $44.0 million in the same period in 2010, a decrease of 2.3 percent.
Adjusted EBITDA for the six months ended June 30, 2011 was $74.8 million, compared to $56.1 million for the same period a year ago. Adjusted EBITDA includes consolidated EBITDA and the company’s share in the interest, taxes, depreciation and amortization related to its unconsolidated 50 percent interest in the Mammoth complex in California for the six months ended June 30, 2010. The reconciliation of GAAP net cash provided by operating activities to Adjusted EBITDA, as well as additional cash flow information is set forth below.
Conference Call Details
Ormat will host a conference call to discuss its financial results and other matters discussed in this press release at 10 a.m. EDT on Thursday, August 4, 2011. The call will be available as a live, listen-only webcast at www.ormat.com. During the webcast, management will refer to slides that will be posted on the web site. The slides and accompanying webcast can be accessed through the IR events & Presentations in the Investor Relations section of Ormat’s website.
The webcast replay will be available approximately two hours after the conclusion of the live call. A telephonic replay will be available from 1 p.m. EDT on August 4, 2011 through 11:59 p.m. EDT on August 11, 2011 by calling: (855) 859-2056 (U.S. and Canada) or (404) 537-3406 (International) and entering the reply code: 83311580.
About Ormat Technologies
Ormat Technologies, Inc. is the only vertically integrated company primarily engaged in the geothermal and recovered energy power business. The ccompany 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 products and systems are covered by 80 U.S. patents. Ormat has engineered and built power plants, that it currently owns or has supplied to utilities and developers worldwide, totaling approximately 1370 MW of gross capacity. Ormat’s current generating portfolio includes the following geothermal and recovered energy-based power plants: in the United States - Brady, Brawley, Heber, Jersey Valley, Mammoth, Ormesa, Puna, Steamboat, OREG 1, OREG 2, OREG 3 and OREG 4; in Guatemala - Zunil and Amatitlan; in Kenya - Olkaria III; and, in Nicaragua - Momotombo.