Ormat Industries Ltd. (TASE: ORMT) subsidiary Ormat Technologies Inc. (NYSE: ORA) reported third quarter revenue of $99.7 million, an increase of 25.5% over the corresponding quarter of 2007.
The revenue figure beat average analyst estimates of $92.9 million.
The geothermal energy company reported net profit of $15.9 million, or $0.35 per share in the quarter, compared with $15.8 million, or $0.41 per share, in the corresponding quarter. Analysts had expected $0.36 earnings per share for the current quarter.
The company said that despite the increase in revenue, net profit remained nearly the same as the corresponding quarter for two reasons: weakening of the US dollar impacting activity outside the US, and non-recurring consulting and legal expenses related to an acquisition which did not materialize. Electricity revenue for the quarter was $68.8 million, an increase of 12.1% compared with $61.4 million recorded in the third quarter of 2007, which the company attributed to a net increase in domestic generating capacity as a result of new plants placed into service, but the figure was reduced by a generator failure in the Ormesa complex. Products segment revenue was $30.9 million, 71% higher than the $18.1 million in the corresponding quarter.
Ormat CEO Dita. Bronicki, in giving the company's guidance for its full year results, said, "With regard to our electricity segment, following our third quarter earnings results, we maintain our guidance for 2008 and expect electricity segment revenues for 2008 to be approximately $250 million. We also expect additional revenues of approximately $9 million from our share of electricity revenues generated by the Mammoth plant, the investment in which is accounted for under the equity method. Given our products segment results for the third quarter, we now anticipate revenues in this segment of between $75 and $80 million for the year being at the high end of previous guidance."
Bronicki also said, "The predictable cash flow from our fully contracted capacity, together with existing committed credit lines, allows us to continue executing on our growth plans despite the turbulent times within the global economic system."
Shares in Ormat fell 5.5% yesterday to $25.98, giving it a market cap of $1.18 billion. The shares have traded as high as $57.93 in the past year.
Published by Globes [online], Israel business news - www.globes-online.com - on November 6, 2008
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