On top of its other problems, Ormat Technologies is in breach of the New York Stock Exchange's conditions for listing.
Ormat Technologies' (NYSE: ORA; TASE: ORA) woes are piling up. After the volcanic eruption that shut down its Puna geothermal power plant in Hawaii and its announcement that it would restate its third and fourth quarter 2017 and full year financial statements, at the end of last week the company reported that it had received a warning letter from the New York Stock Exchange that it was in breach of the conditions for listing because of the delay in filing its report for the first quarter of 2018.
Ormat was given six months to file the report and meet the listing conditions. In some cases, the New York Stock Exchange will allow an extension of a further six months, but it can also begin delisting procedures earlier.
Geothermal power company Ormat has a market cap in New York and Tel Aviv of $2.7 billion following a 5% fall in its share price last week.
The Puna power plant generates annual EBITDA of $20 million. Ormat owns 63% of it, and it accounted for 3.8% of the company's annual EBITDA in 2017. It was one of the power plants in the 2015 agreement between Ormat and Canadian investment fund Northleaf whereby Northleaf purchased part ownership of Ormat power plants in the US for $162 million. Ormat has insurance that should provide partial compensation for the loss of revenue from the Puna plant.
Published by Globes [online], Israel business news - www.globes-online.com - on May 21, 2018
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Kilauea volcano Hawaii near Ormat plant photo: Reuters