US investment corporation BlackRock has recently significantly increased its stake in Israeli geothermal energy company Ormat Technologies Inc. (NYSE: ORA; TASE: ORA) to 12.5% of share equity - the second highest holding after Japanese company ORIX, which has a 19.7% stake. ORIX bought its stake from FIMI Opportunity Funds and the Bronicki family in 2017.
In April 2022, BlackRock held an 8.3% stake in Ormat, which rose to 9.2% at the end of the second quarter of 2022. But then between the end of the second quarter and the first week of August, BlackRock purchased shares to raise its stake to 12.5%.
At an average share price of $81.50 during that period, BlackRock bought shares for an estimated $185 million. As of today, BlackRock's stake in Ormat is worth $644 million. Ormat is traded on the NYSE with a market cap of $5.2 billion at close of trade yesterday, after its share price has risen 37% over the past year.
Several months ago, BlackRock CEO Larry Fink said that despite the current difficulties due to the war in Ukraine, use of green energy sources in extensive parts of the world would speed up. BlackRock recently reported that it acquired Australian energy storage developer Akaysha Energy for $700 million.
Ormat, led by CEO Doron Blachar, sets up electricity production plants operated by geothermal energy, both for others and independently owned. The company also now operates in the energy storage sector.
In the second quarter of 2022, Ormat reported revenue of $169 million, up 15.1% from the corresponding quarter of 2021, and non-GAAP net profit of $12.2 million, down from $13 million in the corresponding quarter. Following publication of the financial report, Oppenheimer lifted Ormat's target price per share from $85 to $97, 5.3% above the company's share price on Wall Street at close of trade yesterday.
Published by Globes, Israel business news - en.globes.co.il - on August 23, 2022.
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