Latest news with #OrmatTechnologies
Yahoo
08-08-2025
- Business
- Yahoo
Ormat Technologies Inc (ORA) Q2 2025 Earnings Call Highlights: Record Revenue Growth Amid Challenges
Revenue: $234 million, a 9.9% increase compared to the previous year's second quarter. Net Income: $28 million, a 26.1% increase from the prior year. Adjusted Net Income: $29.1 million, reflecting a 19.8% increase. Adjusted EBITDA: $134.6 million, a 6.7% increase year-over-year. Gross Profit: $56.9 million, down 7.3% from $61.4 million in the previous year. Gross Margin: 24.3%, down from 28.8% last year. Electricity Segment Revenue: $159.9 million, a 3.8% decrease due to maintenance and energy curtailment. Product Segment Revenue: $59.6 million, a 57.6% increase driven by strong backlog. Energy Storage Segment Revenue: $14.5 million, a 62.7% increase due to new operations and strong merchant prices. Cash and Cash Equivalents: Approximately $206 million as of June 30, 2025. Total Debt: Approximately $2.7 billion with a cost of debt at 4.95%. Net Debt: Approximately $2.5 billion, equivalent to 4.4x net debt to EBITDA. Dividend: Quarterly dividend of $0.12 per share declared, payable on September 3, 2025. 2025 Revenue Guidance: Expected to range between $935 million and $975 million. 2025 Adjusted EBITDA Guidance: Expected to range between $563 million and $593 million. Warning! GuruFocus has detected 12 Warning Signs with ORA. Release Date: August 07, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Ormat Technologies Inc (NYSE:ORA) reported a record second quarter with a 9.9% increase in revenue and a 26.1% rise in net income. The company completed the acquisition of the Blue Mountain geothermal power plant, enhancing its generating capacity. Ormat secured $300 million in funding through tax equity transactions and project finance debt to support future development. The company is benefiting from expedited federal permitting reforms, accelerating its geothermal development pipeline. Ormat's energy storage segment demonstrated robust growth with a 62.7% increase in revenue, driven by new projects and higher merchant prices. Negative Points The electricity segment experienced a 3.8% decrease in revenue due to ongoing maintenance work and energy curtailment in the U.S. Gross profit for the second quarter decreased by 7.3%, with a decline in consolidated gross margin from 28.8% to 24.3%. The company faced a temporary reduction in electricity segment profitability, impacting overall financial performance. Ormat's energy storage industry remains heavily dependent on batteries sourced from China, posing potential risks due to FEOC provisions. The company experienced a $12 million reduction in EBITDA due to energy curtailment and well field work at the Puna power plant. Q & A Highlights Q: Can you discuss the opportunity for expedited permitting in geothermal development and its impact on project timelines? A: Doron Blachar, CEO: The support from the administration has significantly accelerated permitting processes, allowing us to advance multiple projects. This has enabled us to start full-sized drilling and plan new projects for release in the coming years. For example, the expansion of the Heber project, which began permitting several years ago, has now moved forward due to these changes. Q: Could you clarify the status of safe harboring for your energy storage projects and any concerns regarding FEOC implications? A: Doron Blachar, CEO: We have safe harbored projects that will come online by 2028 or 2029, with batteries already in the U.S. for those under construction. We are actively safe harboring additional projects, ensuring compliance with current regulations and mitigating FEOC concerns. Q: What progress has been made in enhanced geothermal systems (EGS), and what is the potential opportunity? A: Doron Blachar, CEO: We have appointed a Senior VP to lead EGS efforts and are exploring multiple technologies. Initially, EGS will enhance production at existing facilities, but long-term, it could significantly expand Ormat's growth potential in both development and product segments. Q: How have recent legislative changes, like tax credits and BLM permitting, affected your development strategy? A: Doron Blachar, CEO: The extended PTC and ITC benefits provide a clear runway for geothermal projects until 2033, with minimal impact from FEOC rules. This clarity supports our development strategy, allowing us to accelerate projects and maintain our 2028 targets. Q: Can you provide an update on the Blue Mountain acquisition and its expected contributions? A: Assaf Ginzburg, CFO: Blue Mountain is expected to contribute approximately $4 million in EBITDA for the second half of the year. We plan to increase capacity by 15% by 2027, and the PPA expiring in 2029 should allow for better pricing, enhancing future revenue. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
08-08-2025
- Business
- Yahoo
Ormat Technologies Inc (ORA) Q2 2025 Earnings Call Highlights: Record Revenue Growth Amid Challenges
Revenue: $234 million, a 9.9% increase compared to the previous year's second quarter. Net Income: $28 million, a 26.1% increase from the prior year. Adjusted Net Income: $29.1 million, reflecting a 19.8% increase. Adjusted EBITDA: $134.6 million, a 6.7% increase year-over-year. Gross Profit: $56.9 million, down 7.3% from $61.4 million in the previous year. Gross Margin: 24.3%, down from 28.8% last year. Electricity Segment Revenue: $159.9 million, a 3.8% decrease due to maintenance and energy curtailment. Product Segment Revenue: $59.6 million, a 57.6% increase driven by strong backlog. Energy Storage Segment Revenue: $14.5 million, a 62.7% increase due to new operations and strong merchant prices. Cash and Cash Equivalents: Approximately $206 million as of June 30, 2025. Total Debt: Approximately $2.7 billion with a cost of debt at 4.95%. Net Debt: Approximately $2.5 billion, equivalent to 4.4x net debt to EBITDA. Dividend: Quarterly dividend of $0.12 per share declared, payable on September 3, 2025. 2025 Revenue Guidance: Expected to range between $935 million and $975 million. 2025 Adjusted EBITDA Guidance: Expected to range between $563 million and $593 million. Warning! GuruFocus has detected 12 Warning Signs with ORA. Release Date: August 07, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Ormat Technologies Inc (NYSE:ORA) reported a record second quarter with a 9.9% increase in revenue and a 26.1% rise in net income. The company completed the acquisition of the Blue Mountain geothermal power plant, enhancing its generating capacity. Ormat secured $300 million in funding through tax equity transactions and project finance debt to support future development. The company is benefiting from expedited federal permitting reforms, accelerating its geothermal development pipeline. Ormat's energy storage segment demonstrated robust growth with a 62.7% increase in revenue, driven by new projects and higher merchant prices. Negative Points The electricity segment experienced a 3.8% decrease in revenue due to ongoing maintenance work and energy curtailment in the U.S. Gross profit for the second quarter decreased by 7.3%, with a decline in consolidated gross margin from 28.8% to 24.3%. The company faced a temporary reduction in electricity segment profitability, impacting overall financial performance. Ormat's energy storage industry remains heavily dependent on batteries sourced from China, posing potential risks due to FEOC provisions. The company experienced a $12 million reduction in EBITDA due to energy curtailment and well field work at the Puna power plant. Q & A Highlights Q: Can you discuss the opportunity for expedited permitting in geothermal development and its impact on project timelines? A: Doron Blachar, CEO: The support from the administration has significantly accelerated permitting processes, allowing us to advance multiple projects. This has enabled us to start full-sized drilling and plan new projects for release in the coming years. For example, the expansion of the Heber project, which began permitting several years ago, has now moved forward due to these changes. Q: Could you clarify the status of safe harboring for your energy storage projects and any concerns regarding FEOC implications? A: Doron Blachar, CEO: We have safe harbored projects that will come online by 2028 or 2029, with batteries already in the U.S. for those under construction. We are actively safe harboring additional projects, ensuring compliance with current regulations and mitigating FEOC concerns. Q: What progress has been made in enhanced geothermal systems (EGS), and what is the potential opportunity? A: Doron Blachar, CEO: We have appointed a Senior VP to lead EGS efforts and are exploring multiple technologies. Initially, EGS will enhance production at existing facilities, but long-term, it could significantly expand Ormat's growth potential in both development and product segments. Q: How have recent legislative changes, like tax credits and BLM permitting, affected your development strategy? A: Doron Blachar, CEO: The extended PTC and ITC benefits provide a clear runway for geothermal projects until 2033, with minimal impact from FEOC rules. This clarity supports our development strategy, allowing us to accelerate projects and maintain our 2028 targets. Q: Can you provide an update on the Blue Mountain acquisition and its expected contributions? A: Assaf Ginzburg, CFO: Blue Mountain is expected to contribute approximately $4 million in EBITDA for the second half of the year. We plan to increase capacity by 15% by 2027, and the PPA expiring in 2029 should allow for better pricing, enhancing future revenue. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
19-06-2025
- Business
- Yahoo
Ormat completes Blue Mountain Nevada geothermal plant acquisition
Ormat Technologies has finalised its acquisition of the Blue Mountain geothermal power plant from Cyrq Energy, increasing its electricity segment generating portfolio to 1,268MW. The $88m deal transfers 100% equity interest in the 20MW facility, which was originally constructed with Ormat's technology. Located in the US state of Nevada, the Blue Mountain facility is currently engaged in a power purchase agreement (PPA) with NV Energy that will terminate in late 2029. In alignment with its strategic expansion plans, Ormat aims to upgrade and expand the existing geothermal plant by an estimated 3.5MW. Further enhancing its renewable energy footprint, Ormat has proposed adding a new 13MW solar installation to supply auxiliary power to the Blue Mountain site. The addition requires permits and PPA approval. Ormat Technologies CEO Doron Blachar stated: 'The acquisition of the Blue Mountain geothermal power plant enhances our portfolio and reinforces our commitment to sustainable base-load energy solutions. 'This acquisition not only immediately increases our generating capacity but also provides the potential for a significant upside in revenue generation through our planned upgrades and the potential addition of a solar facility. We are excited about the opportunities this acquisition brings, and we look forward to continuing our partnership with NV Energy as we deliver reliable and clean energy to the people of Nevada.' In addition to the current acquisition, Ormat Technologies entered a hybrid tax equity partnership worth $62m with Morgan Stanley Renewables in May 2025. The financial collaboration encompasses the Lower Rio energy storage facility, which boasts a capacity of 60MW/120 megawatt hours.. Ormat is engaged in geothermal and recovered energy generation, with plans to speed up long-term growth in the energy storage market. The company's existing total generating portfolio is 1,558MW with a 1,268MW geothermal and solar generation portfolio, and a 290MW global energy storage portfolio in the US, Kenya, Guatemala, Indonesia, Honduras and Guadeloupe. "Ormat completes Blue Mountain Nevada geothermal plant acquisition" was originally created and published by Power Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Scoop
19-06-2025
- Business
- Scoop
PSNA Congratulates Mercury Energy Abandoning Contract With Israel's Ormat
Palestine Solidarity Network Aotearoa is congratulating Mercury Energy's terminating its contract with Israel's Ormat Technologies to design the Ngatamariki geothermal power station near Taupo. PSNA Co-Chair Maher Nazzal says it appears Mercury has acknowledged the legal jeopardy of Israeli companies operating throughout the world. 'The International Court of Justice last year declared Israel's presence in the Occupied Palestinian Territories is illegal and called on everyone to stop giving 'aid or assistance' to Israel which will help it to maintain its illegal occupation.' 'Mercury's decision is in line the ICJ findings and we welcome it as a victory for the Boycott Divestment and Sanctions campaign to isolate Israel.' 'No New Zealand companies should have any dealings with Israel, either directly or indirectly.' 'Israel is a rogue genocide and apartheid state – a threat and an embarrassment to all of humanity,' Nazal says. 'But the Ormat contract with Mercury is not the only one. We are now renewing our calls on Contact Energy to do the same and cut its links with Ormat Technologies.' 'If Contact doesn't follow Mercury, then I'm sure many electricity consumers will take the Israeli connection in mind and so switch from Contact to Mercury.'
Yahoo
12-06-2025
- Business
- Yahoo
Island nation launches bold initiative to pull power from volcanic rock: 'Breathes new life into the long-held vision'
The Caribbean island of Dominica depends on generators fueled by dirty energy to power the needs of its 66,000 residents and a booming tourism sector. But that's about to change. Dominica is going all-in on clean energy, constructing a 10-megawatt geothermal power plant near the village of Laudat. The BBC reported that the upcoming power plant seeks to turn the island's natural volcanic activity into electricity, reducing reliance on dirty fuel and potentially lowering electricity costs. "We hope to totally eliminate the need for diesel generation for electricity in Dominica by 2030," Dominica's energy minister, Dr. Vince Henderson, told the BBC. The power plant will capture steam from naturally heated underground water reservoirs, warmed by nearby volcanic rock. This steam will be drawn up to the surface, driving turbines to generate electricity. The used steam will then be cooled back into water and pumped underground to begin the cycle again. Aside from powering the island, Dominica plans to export surplus electricity to neighboring islands via undersea cables, positioning itself as a regional leader in sustainable energy. "As a region heavily dependent on imported fossil fuels, the transition to green energy is not optional — it is existential," Dr. Didacus Jules, director general of the Organisation of Eastern Caribbean States Commission, told the BBC. "This development also breathes new life into the long-held vision of a regional energy grid — one that connects our islands through clean, reliable, and affordable energy." The project, a joint effort between the Dominican government and Ormat Technologies, is expected to cost tens of millions of U.S. dollars. Funding will come from a combination of partnerships and international grants, including support from the U.S. and the U.K. NGOs from around the world are also contributing, alongside loans from the World Bank and the Caribbean Development Bank. Do you think more places of worship should embrace clean energy? Yes — it sets a positive example Only if it saves money No opinion Absolutely not Click your choice to see results and speak your mind. It will be the second geothermal power plant in the Caribbean, joining Guadeloupe, which has a 15-megawatt station that has been in operation for three decades. Dominica aims for its facility to be operational by the end of 2025, per the BBC. Geothermal energy relies on the Earth's natural heat, a renewable and continuously replenished resource, to produce electricity. It produces very low pollution output compared to dirty fuel energy coming from gas and oil. Geothermal plants also use less land than many other energy sources. While solar or wind are other clean energy options, geothermal power provides steady, constant energy, making it wholly reliable. "Geothermal is a great, zero-emission electricity that doesn't depend on wind or sun, and operates 24/7," Ormat's chief executive, Doron Blachar, told the BBC. "It brings jobs to a country — both during construction and, more importantly, during the plant's operations — along with new technology and expertise." Though the effort promises to bring clean energy to the island, it doesn't come without concerns — and some environmental compromises. Local environmentalists told the BBC they're worried about the ecological impact of the facility's construction, noting that important vegetation has already been lost and wildlife displaced in the early stages of the project. Other residents expressed fears that the geothermal plants could potentially trigger earthquakes. Ormat, however, stated that such incidents have never occurred in their operations. Join our free newsletter for good news and useful tips, and don't miss this cool list of easy ways to help yourself while helping the planet.
