Ormat Industries Ltd. (TASE: ORMT) US subsidiary Ormat Technologies Inc. (NYSE: ORA) yesterday published its financial report for the second quarter of 2009. The geothermal energy company achieved record revenue and will pay a dividend of $0.06 per share for the second quarter and expects to do the same in the third quarter as well.
Ormat Technologies posted $100.2 million revenue for the second quarter, 25% more than the $80.2 million revenue for the corresponding quarter of 2008. Product revenue rose 115.1% to $39.7 million for the second quarter from $18.4 million. for the corresponding quarter, while electricity sales revenue fell 2% to $60.6 million from $61.8 million.
Net profit rose $16 million ($0.35 per share) for the second quarter from $12.1 million for the corresponding quarter. The company attributed most of the growth to its Product Segment, as well as foreign currency conversions.
Ormat CEO Yehudit Bronicki noted that the company increased its electricity generation 14% to 811,000 megawatt-hours in the second quarter from from 712,000 megawatt-hours in the corresponding quarter. Revenue declined, however, due to lower oil prices. She added that the company was pursuing new exploration at several sites in the US.
Bronicki said, "Following our second quarter earnings results, we are increasing our guidance for 2009. We expect our total revenues to increase to between $382 million and $400 million." She predicts Electricity Segment revenue to be $252-260 million, including additional revenue from the Mammoth geothermal project. She raised the Product Segment revenue guidance to $130-140 million.
Bronicki concluded by noting the US government's increase in support for the renewable energy industry, which Ormat is well positioned to take advantage of.
Ormat Technologies' share closed at $40.33 on the New York Stock Exchange yesterday. Ormat Industries' share rose 3.8% in early trading on the TASE to NIS 33.70.
Published by Globes [online], Israel business news - www.globes-online.com - on August 6, 2009
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