Ormat Technologies swings to net loss in Q3 2012

Nov 7, 2012 - US geothermal and recovered power producer Ormat Technologies (NYSE:ORA) yesterday said it had turned to a third-quarter net loss of USD 500,000 (EUR 388,500) against a profit of USD 1 million a year earlier.

The result includes USD 7.3 million in impairment loss related to its OREG 4 recovered heat-to-power plant due to steady low output.

Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) rose to USD 48.2 million from USD 46.7 million.

Operating profit fell to USD 14.2 million from USD 24.2 million a year ago, mainly due to the impairment loss and lower gross margin in the electricity segment, driven by low gas prices in the company's power purchase agreements in California and USD 3.8 million loss on put and swap contracts on oil and gas prices.

Revenue grew 23% on the year to USD 136.1 million. Electricity revenue declined 6.2% to USD 81.5 million, but product revenue rose to USD 54.7 million from USD 24 million on the back of new orders booked in 2011 and 2012.

Ormat's CEO Dita Bronicki said the company had entered deals that would provide either a fixed or a minimum rate through 2013 to reduce its revenue exposure to natural gas and oil.

(USD 1 = EUR 0.777)

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