Geothermal co Ormat's net profit trebles in Q1

US-based geothermal company Ormat Technologies Inc (NYSE:ORA) this week said its net profit almost trebled to USD 29.3 million (EUR 25.6m) in the first quarter of 2016 from USD 10 million a year back.

Chief executive Isaac Angel said the company's focus on manufacturing and operational efficiency which drove revenue and margin expansion were behind its strong start to the year.

Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) increased 22.8% to USD 80.2 million. Revenues showed growth of 26.1% to USD 151.6 million. Product segment revenues rose by a faster 44.4% to USD 43.7 million, while electricity segment revenues increased 19.9% to USD 107.9 million.

Ormat generated 1.4 million MWh of electricity in the period, a rise of 16.4% from a year ago.

Its gross margin increased to 42.1% from 36.6%.

The company said it expected its gross margins in the products segment to be higher than normal during 2016 due to lower commodity prices, the contribution of several large contracts and higher revenue contribution. Normalisation of margins is expected in 2017.

Ormat confirmed its full-year guidance with revenues seen at between USD 620 million and USD 640 million, and adjusted EBITDA in the range of USD 300 million to USD 310 million.

(USD 1.0 = EUR 0.875)

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