Ormat's Q2 EBITDA, revenues stable

Source: Gobierno de la Republica Honduras

US geothermal company Ormat Technologies Inc (NYSE:ORA) reported an increased EBITDA and stable revenues for the second quarter (Q2) of 2020.

The net profit for the period dropped by a third to USD 23 million (EUR 19.6m) after an income tax provision of USD 11.8 million. A year ago, the bottom line result included an income tax benefit of USD 3.5 million.

The company said the COVID-19 pandemic did not have a material impact on its results, but it may affect Ormat in the future. Contract awards for “significant projects” in the Products segment have been delayed, but the segment is still on track to achieve its forecast revenue for the year, CEO Doron Blachar said. In the second quarter, Product segment revenues contracted by 16% year-on-year due to lower contract backlog.

The table contains more details on Ormat’s performance.

All in USD million, unless specified	Q2 2020	Q2 2019
Revenues	174.9	184.1
- from Electricity segment	128.7	129.1
- from Product segment	43.7	52
- from Energy storage and management services	2.5	3
Gross margin	37.4%	35.4%
- from Electricity segment	44.1%	42.8%
- from Product segment	20.6%	20.6%
- from Energy storage and management services	(13.6%)	(29.5%)
Adj. EBITDA	97.9	94.9
Net profit to shareholders	23	33.9

The company now expects 2020 revenues of USD 710 million-735 million, including USD 550 million-560 million from Electricity and USD 140 million-150 million from Products. The adjusted EBITDA is seen at USD 400 million-410 million, with an adjusted EBITDA to minority interests of USD 27 million.

Ormat will pay a quarterly dividend of USD 0.11 per share on September 1 to shareholders of record as of August 18.

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