According to FUNDER website data,
204 mutual funds hold Ormat Techno shares in the amount of NIS 202.93 million
Funds that hold significant holdings in the stock – for the full list of holdings
Below is a change in the holdings of the mutual funds in the Ormat Techno share according to FUNDER-MVF data.
We update the target price of the Ormat share to 97 d per share (from 77 d) and leave the recommendation for “market weight” due to reaching a relative equilibrium with the forecasts for the next two years and the market approach.
It should be noted that in the short term, the positive sentiment in renewable energy stocks may slow down after the phenomenal performance of the sector.
Ormat Technologies published its financial results for the fourth quarter and for the entire year 2020, which ended on December 31, 2020. Ormat’s reports were relatively stable for the period, but lower than expected and reflected the impact of the corona on the products segment.
The points that stood out the most in the past year were the regulation of open tax assessments in Kenya, which stood at $ 200 million, the strengthening of the balance sheet with the raising of $ 340 million and the reopening of a Pune station in Hawaii that is expected to reach a production level of 13 megabytes in the middle of the year. However, the important thing, especially in light of the stock’s pricing – are the forecasts for the years 2021-2022.
The guidance for the coming year is lower than expected, with a backlog of products of only $ 33m. On the other hand, by the beginning of 2023, the company expects to grow by about 500 megawatts (geothermal, diesel and storage) about 50% of the active portfolio with 20% growth in EBITDA in 2023. The company intends to detail how it will do this at a conference of analysts in May. We raised the capital investments to about 525 and 626, respectively.
The results of the past year were lower than the consensus expectations, while the net profit for the year was higher than expected. Revenues from the electricity sector in 2020 remained virtually unchanged, and the positive impact of the new stations was partially offset by the silence in Kenya. As expected, revenue from the products segment decreased by 22.5%, as expected.
The annual net profit decreased by 3% due to the beneficial effect of the tax benefit in 2019. The adjusted net profit for 2020 increased by about 14% and reflected, among other things, the compensation for applicants, an increase in profit from the sale of tax credits and a decrease in financing relief.
Results for the quarter: Net income attributable to shareholders increased by 64.2% compared to the corresponding quarter last year. The company increased its quarterly dividend by 9% to $ 0.12 per share.
Results of the year: Net income attributable to shareholders amounted to $ 85.5 million, $ 1.65 per fully diluted share, compared to $ 88.1 million, $ 1.72 per fully diluted share last year, a decrease of 3% and 4.1%, respectively which was mainly affected by a one-time tax benefit recorded In 2019. Excluding this tax benefit, adjusted adjusted earnings attributable to shareholders increased by 14.3% and fully diluted adjusted earnings per share increased by 13%.
Adjusted EBITDA increased by 9.3% to $ 420.2 million compared to $ 384.3 million last year.
At the operational level, the company has completed the acquisition of an energy storage project in the text, which is ready for the start of construction. This acquisition is another acquisition for a deal announced by the company in July for the acquisition of the Pomona storage project in California, which has increased its storage portfolio to 73 megawatts.
Key points for the results of 2020:
Total revenue was $ 705.3 million, down 5.5% from $ 746.0 million last year. Revenues from the electricity sector increased by 0.2% to $ 541.4 million, compared to $ 540.3 million last year. Revenue from the products segment fell 22.5% to $ 148.1 million, compared to $ 191.0 million last year. Revenues from the energy storage sector totaled $ 15.8 million, compared to $ 14.7 million last year.
Net income attributable to shareholders amounted to $ 85.5 million, $ 1.65 per fully diluted share, compared to $ 88.1 million, $ 1.72 per fully diluted share last year, a decrease of 3% and 4.1%, respectively, which was mainly affected by a one-time tax benefit recorded in 2019. Excluding this tax benefit, adjusted adjusted earnings for shareholders increased by 14.3% and fully diluted adjusted earnings per share increased by 13%.
Adjusted EBITDA amounted to $ 420.2 million compared to $ 384.3 million last year, an increase of 9.3%. The match is detailed at the end of the company’s original announcement.
The Company’s Guidance for 2021
The company expects revenues in the range of $ 640 million to $ 675 million and revenues in the electricity sector in the range of $ 570 million to $ 580 million. The revenue sector’s revenue forecast includes $ 33 million from the Hawaii power plant.
Product segment revenue ranges from $ 50 million to $ 70 million.
Revenue from energy storage services ranges from $ 20 million to $ 25 million. Adjusted EBITDA in the range of $ 400 million to $ 410
The Bottom Line:
According to the market approach, Ormat is trading at an X EV / EBITDA multiplier of 15-17 for 2023, which is in line with the positioning in the alternative comparison group and even assumes an upside of about 20%. On the other hand, compared to the conventional comparison group, pricing embodies a premium.
We believe the pricing is fair and reflects a premium for operational success in the coming years. It should be noted that there is a potential upside that is now a vision, a possible entry of the oil leaders in the geothermal field. This upside is supported by the trend, but cannot be quantified at this time.