Ormat Industries Ltd. (TASE: ORMT) US subsidiary Ormat Technologies Inc. (NYSE: ORA) today published its financial report for the third quarter of 2009. Equipment sales boosted the geothermal energy developer and operator's revenue and profits. The company will pay a dividend of $0.06 per share, as part of its target to distribute at least 20% of its net profit as a dividend.
Ormat Technologies posted $119.8 million revenue for the third quarter, 20.2% more than the $99.7 million for the corresponding quarter of 2008. Product segment revenue rose 65.5% to $51.1 million for the third quarter from $30.9 million for the corresponding quarter, thanks to equipment procurement contracts for the construction of three large binary geothermal projects in Nevada, New Zealand, and Costa Rica. Electricity segment revenue was unchanged.
Net profit rose 48.1% to $23.4 million ($0.52 per share) for the third quarter from $15.8 million for the corresponding quarter.
Ormat Technologies CEO Yehudit Bronicki said, "We continued to benefit from the significant increase in revenue from our product segment resulting from the record backlog that we had at the beginning of 2009. We expect revenue from this segment to return to previous levels in 2010 with a corresponding reduction in margins."
Bronicki added that the company's electricity generation in the US and other countries rose 19% to about 799,000 megawatts, and that the company had secured new land leases in California and Nevada.
Ormat Technologies had $20.3 million in cash and cash equivalents at the end of September and $412.5 million in available bank and other credit, of which $218.7 million is unused.
For the full-year 2009 guidance, Bronicki predicted $254-258 million electricity segment revenue, and raised the product segment revenue forecast to $150 million.
Ormat Technologies's share closed at $36.65 yesterday giving a market cap of $1.66 billion. Ormat Industries' share rose 1.2% in morning trading on the TASE today to NIS 31.36.
Published by Globes [online], Israel business news - www.globes-online.com - on November 5, 2009
© Copyright of Globes Publisher Itonut (1983) Ltd. 2009