Ormat jumps on strong Q1 results

Isaac Angel
Isaac Angel

The Israeli geothermal energy company sees 2020 revenue between $710-740 million, a fraction down from its last guidance of $720-740 million.

Israeli geothermal energy company Ormat Technologies Inc. (NYSE: ORA; TASE: ORA) has beaten the analysts in its first quarter financial results and slightly cut its guidance due to the coronavirus crisis.

The company's share price was up 13.50% in morning trading on Wall Street at $71.60, giving a market cap of $3.64 billion.

Ormat reported $192 million in the first quarter of 2020, down 3.5% from the corresponding quarter of 2019 but above the analysts' expectations of $187 million. Net profit was $26 million, up slightly from $25.9 million in the corresponding quarter of 2019. Earnings per share was $0.51, in line with the analysts' expectations. Adjusted EBITDA increased 4.2% to $106.0 million, up from $101.8 million in the first quarter of last year.

Ormat CEO Isaac Angel said, "In the first quarter, we achieved strong results, driven by the solid performance of our electricity segment, which benefits from our continuous efforts to streamline operations and optimize power generation.

He added, "The world is currently facing a global health crisis and we are experiencing a dramatic volatile economic environment, the impact and duration of which is still uncertain. In the first quarter, we took prompt steps to secure the safety of our employees, to optimize our supply chain, and to enhance our liquidity position in order to support capital expenditures and growth plans. These efforts, together with the inherent stable and long term contracted portfolio of our electricity segment, have enabled us to ease the impact of the Covid-19 pandemic at this time."

Ormat sees 2020 revenue between $710-740 million, a fraction down from its last guidance of $720-740 million.

Published by Globes, Israel business news - www.globes-online.com - on May 11, 2020

© Copyright of Globes Publisher Itonut (1983) Ltd. 2020

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