Quarterly revenues increased 20.5% to a record $152.7 million Quarterly dividend payments are resumed
Ormat Technologies, Inc. (NYSE: ORA) today announced financial results for the second quarter of 2013.
Quarterly financial highlights compared to the same quarter last year:
- Total revenues grew 20.5%
- Product revenue grew 44.9% and reached $65.0 million
- Electricity revenue grew 7.1% and reached 87.7 million
- Operating income grew 55.3% to $37.9 million
- Net income attributable to the Company’s shareholders amounted to $25.2 million or $0.55 per share compared to $8.6 million or $0.19 per share; Net income attributable to the Company’s shareholders, excluding a $3.6 million after-tax gain related to oil and gas derivative instruments and a $3.6 million after-tax gain on the sale of the Momotombo plant in Nicaragua, was $18.0 million compared to $4.8 million or $0.41 per share compared to $0.11 per share.
- EBITDA grew 37.3% to $69.7 million
Operational highlights and recent developments:
- Increased electricity generation by 12.9% to 1.1 million MWh, driven by new capacity coming on line at Olkaria III Plant 2 in Kenya and McGinness Hills in Nevada.
- Exceeded the expected capacity in both McGinness Hills and Olkaria III complex which are contributing additional 6 MW, bringing the total generating capacity to 595 MW.
- Accelerated the handover of the 22 MW Momotombo power plant in Nicaragua that was scheduled for mid- 2014.
- Signed the Sarulla project agreements and secured our role as a supplier for approximately $254 million of equipment;
- Signed a 20-year PPA with Southern California Public Power Authority (SCPPA) for our 16 MW Wild Rose project in Nevada
Commenting on the results, Dita Bronicki, Chief Executive Officer of Ormat, stated: “We are pleased with the good operational performance and the strong financial results achieved this quarter. In the electricity segment, our focus on prudently expanding generation capacity is paying off as reflected in the results. In May 2013, we commenced commercial operation of the 36 MW Olkaria III Plant 2 in Kenya. The addition of Olkaria combined with the impact of McGinness Hills, which commenced operations in July 2012, drove a 12.9% year-over-year increase in generation capacity in the quarter. As we increase capacity, we are also improving operational efficiencies at our plants attaining a gross margin of 33.1%.”
“In the product segment a greater progress in a number of contracts resulting in exceptionally strong quarterly revenues. Our backlog remains strong and stands at approximately $170 million with approximately $90 to $100 million for recognition in 2014.”.
Ms. Bronicki added, “For the full year 2013, we are updating our electricity segment guidance, in light of the sale of the Momotombo plant, which reduced our expected revenues for the full year by $11.0 million. We expect the electricity segment revenues to be between $325 million and $335 million. In the product segment we are increasing our guidance to be between $185 million and $195 million. The total revenue for the full year 2013 is expected to be between $510 million to $530 million.
For the three months ended June 30, 2013, total revenues increased 20.5% to $152.7 million from $126.7 million in the second quarter of 2012. Product revenues increased 44.9% to $65.0 million from $44.8 million in the three months ended June 30, 2012. Electricity revenues increased 7.1% to $87.7 million from $81.9 million in the three months ended June 30, 2012.
Operating income for the three months ended June 30, 2013 was $37.9 million, compared to operating income of $24.4 million for the three months ended June 30, 2012.
For the three months ended June 30, 2013, the company reported net income attributable to the Company’s shareholders of $25.2 million or $0.55 per share, compared to net income of $8.6 million or $0.19 per share for the three months ended June 30, 2012. Second quarter 2013 results include an after-tax capital gain of $3.6 million from the sale of the Momotombo geothermal power plant.
EBITDA for the three months ended June 30, 2013 were $69.7 million, compared to $50.8 million for the three months ended June 30, 2012. The reconciliation of GAAP net cash provided by operating activities to EBITDA and Adjusted EBITDA and additional cash flows information is set forth below in this release.
Net cash provided by operating activities was $20.0 million in the six months ended June 30, 2013, compared to $72.1 million in the six months ended June 30, 2012.
On August 6, 2013, ORMAT’s Board of Directors approved a payment of a quarterly dividend of $0.04 per share pursuant to the company’s dividend policy, which targets an annual payoff ratio of at least 20% of the company’s net income. The dividend will be paid on August 29, 2013 to shareholders of record as of closing of business on August 19, 2013. The company expects to pay a dividend of $0.04 per share in the next quarter.
As of June 30, 2013 cash, cash equivalents and a short-term bank deposit were $31.9 million. In addition, as of June 30, 2013, the company had available committed lines of credit with commercial banks aggregating $484.3 million, of which $185.7 million is unused.
Conference Call Details
Ormat will host a conference call to discuss its financial results and other matters discussed in this press release at 10:00 A.M. EST on Wednesday, August 7, 2013. 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 Webcast & Presentations in the Investor Relations section of Ormat’s website.
An archive of the webcast will be available approximately 10 minutes after the conclusion of the live call.
About Ormat Technologies
With over four decades of experience, Ormat Technologies, Inc. is a leading geothermal company and the only vertically integrated company solely engaged in geothermal and recovered energy generation (REG). The company owns, operates, designs, manufactures and sells geothermal and REG power plants primarily based on the Ormat Energy Converter—a power generation unit that converts low-, medium- and high-temperature heat into electricity. With over 82 U.S. patents, Ormat’s power solutions have been refined and perfected under the most grueling environmental conditions. Ormat has over 500 employees in the United States and about 600 overseas. Ormat’s flexible, modular solutions for geothermal power and REG are ideal for the vast range of resource characteristics. The company has engineered, manufactured and constructed power plants, which it currently owns or has supplied to utilities and developers worldwide, totaling approximately 1600 MW of gross capacity. Ormat’s current generating portfolio of 589 MW (net) is spread globally in the U.S., Guatemala and Kenya.
Ormat’s Safe Harbor Statement
Information provided in this press release may contain statements relating to current expectations, estimates, forecasts and projections about future events that are “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally relate to Ormat’s plans, objectives and expectations for future operations and are based upon its management’s current estimates and projections of future results or trends. Actual future results may differ materially from those projected as a result of certain risks and uncertainties. For a discussion of such risks and uncertainties, see “Risk Factors” as described in Ormat Technologies, Inc.’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 11, 2013.
These forward-looking statements are made only as of the date hereof, and we undertake no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.
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