Ormat Industries Ltd. (TASE: ORMT) published a strong financial report for the third quarter of 2006 on Thursday night, unsurprisingly in view of the company’s growth in recent quarters. The financial report basically summarizes the financials of the company’s subsidiary, Ormat Technologies Inc. (NYSE: ORA), which reported growth in both revenue and net profit, and is preparing to expand its activity. The company added that its bids in 100-megawatt (MW) projects had reached the pricing stage, which means that the company anticipates a promising horizon.
Ormat Industries posted $83.8 million (NIS 367.6 million) revenue for the third quarter, 11% more than the $75.4 million (NIS 342 million) for the corresponding quarter of 2005. The company attributed most of the increase to expanded power generation in the US, even though power production at the company’s Puna geothermal project in Hawaii declined from 30 MW to 22 MW because of mechanical problems in two boreholes.
Ormat Industries said its operating profit fell 4% because of higher sales and marketing and administrative expenses, which were offset by lower financing expenses and taxes. The company posted a net profit of $14 million (NIS 61.6 million) for the third quarter, up 6.5% on the corresponding quarter of last year.
Ormat Industries CEO Judith Bronicki reiterated the company’s guidance of $200 million revenue from power production and $65-70 million revenue from the sale of products.
Published by Globes [online], Israel business news - www.globes.co.il - on November 12, 2006
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