Ormat upgrades 2016 forecast again

Ormat Technologies Inc (NYSE:ORA) said on Monday it is boosting its full-year guidance as it posted third-quarter results that "exceeded expectations".

“We are well-ahead of the pace for our previous guidance, and with a strong backlog and increasing confidence in both our electricity and product segment, we are increasing our 2016 full-year outlook,” said Isaac Angel, CEO of the geothermal energy company.

Ormat’s revised guidance sees total revenues between USD 637 million (EUR 581m) and USD 647 million, and adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) in the range of USD 318 million to USD 323 million. Previously, the company expected adjusted EBITDA for the full year of between USD 310 million and USD 320 million and revenues in the USD 620 million-640 million range. The initial EBITDA projection ranged from USD 300 million up to USD 310 million.

For Q3 2016, the company reported an 83.2% drop in attributable net profit to USD 12.1 million due to certain one-offs. July-September diluted earnings per share (EPS) plummeted to USD 0.24 from USD 1.41 in 2015.

Excluding USD 16 million in one-time expenses related to a litigation settlement and bond prepayment fees, Q3 net income attributable to the company’s shareholders amounted to USD 28.1 million or USD 0.56 per diluted share. This compares to a Q3 2015 net profit of USD 23.4 million, or USD 0.46 per diluted share, excluding a USD-48.7-million tax benefit and related expenses.

Adjusted EBITDA increased 8.1% to USD 85.4 million. Revenues showed growth of 13.4% to USD 184.6 million. Product segment revenues rose by 14% to USD 74.8 million, while electricity segment revenues increased 12.9% to USD 109.8 million.

Ormat generated 1.3 million MWh of electricity in the period, a rise of 10.8% from a year ago. Its gross margin increased to 40.3% from 36.4%.

(USD 1.0 = EUR 0.905)

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