Ormat sees 10% Y/Y drop in 2019 profit, new goals set

The Puna geothermal plant. Source: Ormat. License: All Rights Reserved

February 26 (Renewables Now) - Geothermal power producer Ormat Technologies Inc (NYSE:ORA) on Tuesday posted a 10.1% year-on-year drop in attributable net profit for 2019 as costs increased and gross margin fell.

Apart from geothermal, the Nevada-based company is active in the solar and recovered energy generation segments and aims to transition from a geothermal-focused group to “a leading global provider of renewable energy.” Its goal is to add 180 MW - 200 MW of new solar and geothermal capacity by end-2022 and further grow its energy storage portfolio.

Ormat closed 2019 with a net profit of USD 88.1 million (EUR 81m), against USD 98 million a year earlier. In spite of the decrease, CEO Isaac Angel said that the past year was a strong one for the company, during which electricity segment revenues improved by 6% in annual terms.

“With the encouraging regulatory environment, robust growth plan and increasing market demand for base-load renewable energy, Ormat is well-positioned for continued success in 2020 and beyond,” he added.

The table below gives more details about Ormat’s fourth-quarter (Q4) and full-year 2019 results.

Amounts in USD million Q4 2019 Q4 2018 2019 2018
Total revenues 192.4 190.5 746 719.3
-- electricity 144.4 138.3 540.3 509.9
-- product 43.8 49.7 191 201.7
-- energy storage and management services 4.3 2.4 14.7 7.6
Gross margin (%) 38.7 47.7 36.1 37.6
Operating income 54.5 68 193.8 185.1
Adjusted EBITDA 102.2 113.2 384.3 368
Net attr. profit 12.6 18.2 88.1 98
Adjusted net attr. profit 12.6 21.3 74.8 106.1

The dividend distribution for the October-December quarter will be USD 0.11 per share and will be allocated on March 26, 2020, to shareholders of record as of March 12, 2020. The pay-out for the next three quarters is seen to remain unchanged.

As from July 1, 2020, CEO Isaac Angel will retire from the post but will remain on the board of directors until end-2020 to help the management transition process. He will be succeeded by Daron Blachar, who is presently the company’s chief financial officer.

The US firm guided for revenues of between USD 720 million and USD 740 million in 2020, of which electricity segment revenues will contribute USD 560 million-570 million. Product segment revenues are forecast at USD 140 million-150 million and revenues from energy storage and demand response activity are seen at USD 15 million-20 million. The adjusted EBITDA for 2020 is anticipated to stand at between USD 405 million and USD 415 million.

(USD 1.0 = EUR 0.919)

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Veselina Petrova is one of Renewables Now's most experienced green energy writers. For several years she has been keeping track of game-changing events both large and small projects and across the globe.

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