Geothermal power station. Featured Image: N.Minton/Shutterstock.com
US-based geothermal company Ormat Technologies Inc (NYSE:ORA) on Tuesday increased its adjusted EBITDA guidance for 2016 after reporting an over 60% rise in second-quarter net profit.
The company now expects adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) for the full year of between USD 310 million and USD 320 million, compared with USD 300 million-310 million, previously. The revenue forecast is kept at USD 620 million-640 million.
In the second quarter (Q2) of 2016, Ormat generated net profit attributable to shareholders of USD 24.3 million, up from USD 14.4 million a year earlier. Adjusted EBITDA grew 19.7% to USD 81.2 million.
Q2 revenues were up 13.8% to USD 159.9 million, with electricity segment revenues increasing 14.4% to USD 104 million, driven by the start of operations of new power plants. Product segment revenues increased 12.7% to USD 55.9 million. Gross margin also expanded, to 41.2% from 36.1% in the second quarter of 2015.
Ormat currently has a generating portfolio of 707 MW located in the US, Guatemala, Guadeloupe and Kenya.
In the first six months of 2016, net profit attributable to shareholders rose to USD 53.6 million from USD 24.4 million as revenues grew USD 311.5 million from USD 260.7 million.