Bulletin
Investor Alert

Aug. 4, 2020, 4:30 p.m. EDT

Ormat Technologies Reports Second Quarter 2020 Financial Results

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    Ormat Technologies Inc. (ORA)

or Cancel Already have a watchlist? Log In

RENO, Nev., Aug 04, 2020 (GLOBE NEWSWIRE via COMTEX) -- COMPANY IMPROVED ITS MARGINS IN ALL OPERATING SEGMENTS, LED BY THE STRENGTH AND RESILIENCY OF OUR ELECTRICITY SEGMENT

MANAGEMENT NARROWS THE UPPER-END OF THE GUIDANCE

Ormat Technologies, Inc. /zigman2/quotes/207188294/composite ORA -4.08% today announced financial results for the second quarter ended June 30, 2020.

FINANCIAL RESULTS







        ($ MILLIONS, EXCEPT PER SHARE AMOUNTS)                         Q2 2020     Q2 2019     CHANGE (%)
        Revenues
        Electricity                                                    128.7       129.1       (0.3  )   %
        Product                                                        43.7        52.0        (16.0 )   %
        Energy Storage and Management Services                         2.5         3.0         (15.0 )   %
        Total Revenues                                                 174.9       184.1       (5.0  )   %
        Gross Profit                                                   65.4        65.1        0.4       %
        Gross margin (%)
        Electricity                                                    44.1     %  42.8     %
        Product                                                        20.6     %  20.6     %
        Energy Storage & Management Services                           (13.6 )  %  (29.5 )  %
        Gross margin (%)                                               37.4     %  35.4     %
        Operating income                                               48.1        46.9        2.5       %
        Net income attributable to the Company's stockholders          23.0        33.9        (32.1 )   %
        Diluted EPS                                                    0.45        0.66        (32.8 )   %
        Adjusted Net income attributable to the Company's stockholders 23.0        20.6        11.7      %
        Adjusted diluted EPS                                           0.45        0.40        11.1      %
        Adjusted EBITDA                                                97.9        94.9        3.2       %
        


Reconciliation is set forth below in this release

"This was another solid quarter of strong execution led by the improved profitably of our Electricity segment," commented Doron Blachar, Chief Executive Officer. "I am extremely proud of how our team is operating through the challenging COVID-19 environment and how we were able to successfully complete the enhancement of our 19MW Steamboat Hills complex on time and make significant progress to bring Puna back online by the end of the year."

"We continue with our efforts to minimize the COVID-19 implication on our business, and while we did not experience material impact on our results so far, the continued outbreak of the COVID-19 may affect us more in the future. Specifically, awarding contracts for significant projects in the Products segment is currently delayed. Nevertheless, our Product segment is currently on track to meet its revenue forecast for the full-year 2020," added Mr. Blachar.

"Since March 31, 2020," Mr. Blachar continues, "we have increased our liquidity by over $400 million through the issuance of long-term debt that gives us the flexibility to allocate our resources and manufacturing capabilities to support our organic growth. We are increasing and focusing our efforts on exploring and developing internal projects with a target to increase our geothermal portfolio in the US and globally by 2023 and beyond. This quarter reinforces our confidence that Ormat is on the right path to continue its growth trajectory by relying on Ormat's integrated business model, our geographic and revenue diversity, and our excellent team."

FINANCIAL HIGHLIGHTS FOR THE SECOND QUARTER OF 2020

-- Total revenues of $174.9 million, down 5.0% compared to Q2 2019;

    -- Electricity segment revenues of $128.7 million compared to $129.1 million in Q2 2019;

    -- Electricity segment revenues of $128.7 million compared to $129.1 million in Q2 2019;

    -- Product segment revenues of $43.7 million, down 16.0% compared to Q2 2019;

    -- Energy Storage & Management Services segment revenues of $2.5 million compared to $3.0 million in Q2 2019;

    -- Total gross margin was 37.4%, compared to 35.4% in Q2 2019;

      -- Electricity segment gross margin was 44.1% compared to 42.8% for Q2 2019;

      -- Electricity segment gross margin was 44.1% compared to 42.8% for Q2 2019;

      -- The Company recorded business interruption insurance income of $3.3 million related to the 2018 volcanic eruption in Hawaii, which netted to zero Puna's cost of revenues and reduced general and administrative costs by $0.6 million; In the second quarter 2019, the Company recorded business interruption insurance income of $6.8 million that resulted in a positive gross margin of $1.8 million.

      -- Operating income increased 2.5% due to better gross margins and lower operating expenses;

      -- Net income was $25.3 million compared to $36.2 million in Q2 2019; Q2 2019 net income included $13.3 million related to a one-time Tax benefit;

      -- Net income attributable to the Company's stockholders was $23.0 million, or $0.45 per diluted share, compared to $33.9 million, or $0.66 per diluted share in Q2 2019; adjusted net income attributable to the Company's stockholders for Q2 2019 was $20.6 million or $0.40 per diluted share;

      -- Adjusted EBITDA increased 3.2% to $97.9 million, up from $94.9 million in Q2 2019;

      -- Product segment backlog was approximately $66 million as of August 3, 2020; and

      -- The Company declared a quarterly dividend of $0.11 per share for the second quarter of 2020.

      Reconciliation is set forth below in this release

      RECENT DEVELOPMENTS

      -- As of August 2020, Ormat continue its efforts to recommission its Puna power plant. The Company obtained all necessary permits to start operation, completed the construction of the substation and connected a new production well to the power plant. We expect to resume commercial operation during the fourth quarter with gradual increase of generation to 29MW by the end of the year, subject to on time completion of the transmission line by HELCO and additional field recovery work.

      -- In July 2020, we completed the acquisition of the 20MW/80MWh Pomona energy storage asset in California from Alta Gas for a total net consideration of $43.9 million. The facility is our first battery storage asset in operation in California, increasing our existing operating portfolio to 73MW/136MWh and adding to our battery storage assets in New Jersey, New England and Texas.

      -- In July, Ormat issued approximately $290.0 million of corporate bonds at an effective fixed interest rate of 4.34%. In April and May the Company has issued approximately $130 million of new corporate debt.

      -- In June, Ormat completed the enhancement of its Steamboat Hills complex and increased its generating capacity by 19MW to a total of 84MW.

      2020 GUIDANCE

      Mr. Blachar added, "We are narrowing the upper-end of the guidance for full-year 2020 and expect total revenues of between $710 million and $725 million with Electricity segment revenues between $550 million and $560 million. We expect Product segment revenues of between $140 million and $150 million. Revenues from Energy Storage and Management Services segment are expected to be between $15 million and $17 million. We expect 2020 Adjusted EBITDA of between $400 million and $410 million for the full year. We expect annual Adjusted EBITDA attributable to minority interest to be approximately $27 million."

      The Company provides a reconciliation of Adjusted EBITDA, a Non-GAAP financial measure for the three months ended June 30, 2020. However, the Company is unable to provide a reconciliation for its Adjusted EBITDA guidance range due to high variability and complexity with respect to estimating forward looking amounts for impairments and disposition and acquisition of business interests, income tax expense, and other non-cash expenses and adjusting items that are excluded from the calculation of Adjusted EBITDA.

      SECOND QUARTER 2020 FINANCIAL RESULTS (COMPARING THE QUARTER ENDED JUNE 30, 2020 TO THE QUARTER ENDED JUNE 30, 2019)

      Total revenues for the quarter were $174.9 million, down 5.0% compared to the same quarter last year. Electricity segment revenues of $128.7 million were down slightly compared to $129.1 million last year. Product segment revenues decreased 16.0% to $43.7 million, down from $52.0 million in the same quarter last year due lower contract backlog. Energy Storage and Management Services segment revenues were $2.5 million compared to $3.0 million in the same quarter last year.

      The Company recorded $3.3 million of business interruption insurance income related to the 2018 volcanic eruption, which disrupted operations at its Puna plant. Consistent with generally accepted accounting practices, $2.7 million was allocated to offset costs of revenue at Puna, which netted to zero, and the remaining $0.6 million was allocated to reduce general and administrative expenses.

      General and administrative expenses were $11.3 million, or 6.5% of total revenues, compared to $14.2 million, or 7.7% of total revenues. The decrease was primarily attributable to a decrease in professional fees, business interruption insurance income related to Puna and gain of $1.3 million from sale of concession.

      Net income attributable to the Company's stockholders was $23.0 million, or $0.45 per diluted share, compared to $33.9 million, or $0.66 per diluted share. In the second quarter 2019 net income attributable to the Company's stockholders included $13.3 million of one-time Tax benefit. Adjusted net income attributable to the Company's stockholders in the second quarter 2019 was 20.6 million, or $0.40 per diluted share.

      Adjusted EBITDA was $97.9 million compared to $94.9 million last year.

      Reconciliation is set forth below in this release

      DIVIDEND

      On August 4, 2020, the Company's Board of Directors declared, approved, and authorized payment of a quarterly dividend of $0.11 per share pursuant to the Company's dividend policy. The dividend will be paid on September 1, 2020 to stockholders of record as of the close of business on August 18, 2020.

      CONFERENCE CALL DETAILS

      Ormat will host a conference call to discuss its financial results and other matters discussed in this press release on Wednesday, August 5th, at 10 a.m. ET. The call will be available as a live, listen-only webcast at investor.ormat.com. During the webcast, management will refer to slides that will be posted on the website. The slides and accompanying webcast can be accessed through the News & Events in the Investor Relations section of Ormat's website.

      An archive of the webcast will be available approximately 60 minutes after the conclusion of the live call.

      /zigman2/quotes/207188294/composite
      US : U.S.: NYSE
      $ 108.03
      -4.59 -4.08%
      Volume: 604,276
      Jan. 15, 2021 4:00p
      P/E Ratio
      71.81
      Dividend Yield
      0.41%
      Market Cap
      $6.29 billion
      Rev. per Employee
      $529,861
      loading...
1 2
This Story has 0 Comments
Be the first to comment

Story Conversation

Commenting FAQs »
Link to MarketWatch's Slice.