Ormat Industries (TASE: ORMT), which develops and constructs geothermal and recovered energy power plants, has reported its results for the second quarter of 2005.
The company's revenue totaled NIS 273.7 million in the quarter, slightly below the NIS 277.8 million revenue recorded in the corresponding quarter of 2004. In the first quarter of 2005, revenue was NIS 258.4 million. Gross profit fell considerably in the second quarter this year, from NIS 111.1 million (40% of revenue) in the second quarter of 2004 and NIS 97.7 million (37.8% of revenue) in the first quarter this year, to NIS 91.7 million (33.5% of revenue).
The fall in gross profit is explained by a 10% fall in product sales, and a rise in operating costs at the Ormesa project in Imperial Valley, Southern California, because of a high rate of breakdowns in pumps.
Operating profit fell to NIS 66.5 million in the second quarter, from NIS 83.9 million in the corresponding quarter of 2004, and NIS 69.5 million in the first quarter of 2005.
Net profit for the second quarter was NIS 24.7 million, compared with NIS 46.8 million in the second quarter of 2004, and NIS 38.5 million in the first quarter of 2005.
The company generated a cash flow of NIS 61 million from routine operations in the second quarter of 2005, compared with NIS 23.1 million in the second quarter of 2004.
Published by Globes [online], Israel business news - www.globes.co.il - on August 15, 2005