Ormat Industries (TASE: ORMT) CEO Yehudit "Dita" Bronicki told an investors’ conference at the Tel Aviv Stock Exchange (TASE) today that she expects production capacity to increase by 113 megawatts in 2006, and then by a further 58 megawatts in 2007 and 80 megawatts in 2008. “During the next three years we will post growth of 251 megawatt in energy production, a 78% increase, compared with 323 megawatts in 2005,” she said.
During the conference, Bronicki and chairman and CTO Lucien Yehuda Bronicki presented Ormat’s technology and growth in activity to investors, while addressing their expectations about Ormat’s future performance. Yehudit Bronicki said that by 2020 the potential market for alternative energy in the US would reach 4,000 megawatts. In response to a query by one of the analysts present, Bronicki said that the company’s current 10% share in the production of geothermal energy in the US would increase further.
Asked by “Globes” to comment on the correctness of the estimate published yesterday by Merrill Lynch Haim Israel, who predicted that Ormat would win a project for the production of 200 megawatts of geothermal energy in Indonesia, Bronicki replied that she was unaware of any new developments and was therefore unable to confirm or deny the reports.
In a related development, Ormat announced today that that a subsidiary had signed an agreement to purchase from International Finance Corporation a 14.09% partnership interest (13.67% on a fully diluted basis) in Orzunil I de Electricidad, Limitada (Orzunil), which owns the Zunil Geothermal Project in Guatemala. Ormat will now become the sole owner of the Zunil Project.
Under the agreement, Ormat will pay $3.25 million for the partnership interest. The acquisition is expected to close by the end of the third quarter of 2006 and Ormat's annual net income from the Zunil Project as a result of this acquisition is expected to increase by approximately $600,000 on a full- year basis.
Taking into account the previous acquisition of a 50.8% ownership interest in the project, which was completed on in March this year, and the 14.09% acquisition which was announced on May 2, Ormat's annual net income from the project is expected to increase by an aggregate amount of approximately $3.1 million on a full-year basis.
Published by Globes [online], Israel business news - www.globes.co.il - on June 26, 2006
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