Short seller charges Ormat with 'dirty dealings in clean energy'

Ormat CEO Doron Blachar  / Photo: PR

Hindenburg Research has accused the Israeli geothermal energy company with "widespread and systematic acts of international corruption."

US short seller Hindenburg Research has charged Israeli geothermal energy company Ormat Technologies Inc. (NYSE: ORA; TASE: ORA with "widespread and systematic acts of international corruption."

In a report entitled "Dirty dealings in clean energy," Hindenburg claims that Ormat has been involved in corrupt operations in Guatemala, Honduras and Kenya and estimates that corrupt projects contributed nearly 70% of Ormat's 2020 revenue. Hindenburg claims to have uncovered direct evidence linking Ormat to corruption in Guatemala.

The short seller relies heavily on the close ties between Ormat and Shikun & Binui Holdings Ltd. (TASE: SKBN) where former senior executives are being indicted in Israel for corruption, as evidence of wrongdoing. The report points out that Ormat CEO Doron Blachar is a former CFO of Shikun & Binui, and rather vaguely adds, "It is unclear whether Blachar faces near-term risk of indictment," although there has been no suggestion by the authorities that he will be indicted.

After rising sharply in 2020, Ormat's share price has fallen 30% since the start of 2021. But today's report by Hindenberg seems to have had little impact with Ormat's share price currently down 0.04% on the NYSE at $85.63, giving a market cap of $4.8 billion.

Published by Globes, Israel business news - - on March 1, 2021

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

Ormat CEO Doron Blachar  / Photo: PR
Ormat CEO Doron Blachar / Photo: PR
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