Ormat Industries Ltd. (TASE: ORMT) today published its consolidated financial report for the second quarter of 2009 before the market opened. The geothermal energy company saw its profit plummet, due to the sale of investments in the corresponding quarter of 2008, while revenue rose.
Ormat poster $102.5 million revenue for the second quarter, 24% more than for the corresponding quarter of 2008. However, operating profit fell 65% to $23.4 million for the second quarter from $67.1 million for the corresponding quarter, and net profit fell 72% to $18.2 million from $65.1 million.
Ormat attributed its revenue growth to the 171.7% increase in product sales compared with the corresponding quarter, mostly thanks to large geothermal projects in the US: Centennial in Nevada and Blue Mountain. The company attributed the drop in its net profit to a $56.9 million profit from the sale of investments in the corresponding quarter. Excluding this factor, the company's consolidated net profit was $8.2 million for the corresponding quarter, less than half the net profit for the second quarter.
In its guidance, Ormat Industries cited the guidance of its subsidiary, Ormat Technologies Inc. (NYSE: ORA) from last week. Ormat Industries added that it expects to receive $5 million in royalties from Opti Canada Inc Inc. (TSX: OPC), which is developing Alberta's tar sands, for the completion of the first stage of its Long Lake project.
Electricity Segment revenue declined to $62.4 million for the second quarter from $64.1 million for the corresponding quarter, while Product Segment revenue more than doubled to $39.7 million from $18.4 million. Electricity Segment revenue share of total revenue fell to 61.3% for the second quarter from 77.7% for the corresponding quarter, while the share of Product Segment revenue rose to 38.7% from 22.3%.
Published by Globes [online], Israel business news - www.globes-online.com - on August 9, 2009
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