Ormat Industries Ltd. (TASE: ORMT) subsidiary Ormat Technologies Inc. (NYSE: ORA) reported fourth quarter and full year 2008 revenue that was higher than analyst forecasts, although its net profit for the year was in line with expectations.
Fourth quarter revenue for the geothermal energy company rose to $95.5 million, an increase of 35.2% over the corresponding quarter of 2007, and full year revenue rose to $344.8 million, an increase of 16.5% over 2007. The figures were higher than analysts had expected, with forecasts of fourth quarter revenue of $84.05 million, and full year revenue of $333.6 million.
Net profit increased 31.3%, compared with the corresponding quarter, to $11.7 million in the fourth quarter, and rose 82%, compared with 2007, to $49.8 million for the year. Earnings per share increased 18.2 % to $0.26 in the quarter, and rose 60% to $1.12 for the year.
Analysts had predicted earnings per share of $0.25 for the quarter and $1.12 for the year.
Ormat reported that its product backlog reached a record high of $194 million.
Ormat CEO Dita Bronicki said, "The fundamental business of the Company is in excellent condition and the benefits of the new Stimulus Act will further improve our future results. We substantially grew and improved the profitability of our Electricity and Products Segments, significantly increased the generating capacity in our Electricity Segment and ended the year with a record backlog in the Products Segment."
Ormat did note that cash, cash equivalents and marketable securities, as of the end of the year, decreased to $34.4 million from $60.7 million as of December 31, 2007. Ormat has lines of credits totaling $222.5 million from banks, which it has not yet used.
Revenue from electricity generation in the fourth quarter reached $62.1 million, an increase of 11.8%, compared to $55.5 million in the fourth quarter of 2007. Ormat said the increased revenue is mainly due to more electricity that it generated - 645,826 MWh for the quarter, up from 533,110 MWh in the same period of 2007 - as a result of new plants coming on line and enhanced performance of existing plants.
In addition, increased energy rates at the Puna project due to higher oil prices also helped boost electricity revenues, and Ormat warned that lower oil prices will reduce revenue from the Puna project in 2009.
Fourth quarter revenue from building and operating geothermal plants - the Products Segment jumped 120.9% to was $33.4 million, compared to $15.1 million in the corresponding quarter. Ormat attributed most of the increase in revenues was derived from two large geothermal projects, the Blue Mountain project in Nevada and the Centennial Binary Plant in New Zealand.
Commenting on the outlook for 2009, Ms. Bronicki said, "We expect our 2009 electricity segment revenues to be between $280 million and $290 million. We also expect an additional $9 million of revenues from our share of electricity revenue generated by a subsidiary, which is accounted for under the equity method. With regard to our products segment, we expect that our 2009 revenues will be between $100 million and $120 million."
Shares in Ormat Technologies rose $1.20, or 4.25%, to $29.42 yesterday, giving it a market cap of $1.33 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on February 25, 2009
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