Ormat Hawaii power station still threatened by lava

Isaac Angel  photo: Eyal Izhar

Flowing lava has reached two wells that are part of the Puna power station.

The volcanic eruption in Hawaii continues to be a headache for geothermal energy company Ormat Technologies Inc. (NYSE: ORA; TASE: ORA). The Israeli company's Puna power station, located near the mountain, has been shut down since the eruption began 25 days ago. According to the latest reports, lava from Mount Kilauea is still flowing and has reached two wells that are part of the power station, but not the power station itself.

The Puna power station accounts for 3.5-4% of Ormat's annual EBITDA. According to the company's reports, the asset has insurance, including coverage up to $100 million for a volcanic eruption.

Ormat is active in two sectors: electricity, in which it owns power stations that it builds, and products, in which it builds power stations for third parties. Following the volcanic eruption, Ormat's share has lost 12.5% of its value in recent weeks. Ormat, managed by CEO Isaac Angel, has a $2.6 billion market cap. Its largest shareholder is Japanese company Orix, which invested in Ormat a year ago.

Published by Globes [online], Israel business news - www.globes-online.com - on May 28, 2018

© Copyright of Globes Publisher Itonut (1983) Ltd. 2018

Isaac Angel  photo: Eyal Izhar
Isaac Angel photo: Eyal Izhar
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