Ormat slides on Q4 results

Doron Blachar / Photo: Nir Salkman

Earnings per share were well ahead of the consensus analysts' estimate, but revenue disappointed.

The share price of geothermal energy company Ormat Technologies (NYSE: ORA; TASE: ORA) is down by about 9.5% on the Tel Aviv Stock Exchange, after the company reported its fourth quarter and full year 2020 results this morning. Ormat posted a rise of 64% in net profit in the fourth quarter last year, in comparison with the fourth quarter of 2019, to $20.7 million, or $0.39 per share.

Quarterly revenue fell 7% to $179 million, which is $3 million below the consensus analysts' estimate. Earnings per share were $0.05 higher than the consensus estimate.

For 2020 as a whole, Ormat's revenue was just slightly higher than in 2019, at $541 million. Annual net profit shrank by 3% to $85 million.

The company announced that it would increase its quarterly dividend by 9% to $0.12.

For 2021, Ormat sees revenue of $640-675 million and adjusted EBITDA of $400-410 million.

Ormat, headed by Doron Blachar, constructs geothermal power plants, some of which it also operates. In recent years the company has also entered the growing field of energy storage. Its share price rose some 12% in the twelve months to today's opening.

Published by Globes, Israel business news - en.globes.co.il - on February 25, 2021

© Copyright of Globes Publisher Itonut (1983) Ltd. 2021

Doron Blachar / Photo: Nir Salkman
Doron Blachar / Photo: Nir Salkman
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