Ormat: Declining revenue and disappointing forecasts for 2021

Last night, the geothermal energy company Ormat Dualit published its reports for the fourth quarter of 2020 and for the entire year, and disappointed investors with income that did not meet analysts’ expectations and an increase in profit. The company has provided a low forecast for the coming year.

The company’s revenues in the fourth quarter of 2020 amounted to $ 179 million, a decrease of about 7% compared to the corresponding quarter last year and about 3% below analysts’ expectations. Despite the resumption of operations at the Pune Hawai power plant, the company’s revenue from electricity generation rose by only 1.3%.

Revenue in the entire 2020 totaled about $ 705.3 million, of which $ 541.4 million came from the power generation sector, and $ 148.1 million came from the products sector – construction of geothermal stations and turbine production for other customers.

The annual net profit (NON GAAP) attributed to shareholders reached $ 85.5 million or $ 1.65 per share, an increase of approximately 14.3% compared to the corresponding period. The company just met its $ 1.65 earnings per share forecast. Net income for the fourth quarter was $ 0.39 per share, compared to $ 0.24 per share for the fourth quarter of 2019.

“It was a solid end to a strong year for Ormat, despite unprecedented global challenges,” said Doron Belsher, CEO of the company. “We have met our EBITDA forecasts, which are supported by the improvement in gross profit in our electricity and storage sectors. We have strengthened the balance sheet through the removal of long-term debt and the issuance of capital. “

“In the fourth quarter, we restarted operations in Pune and closed all open tax assessments in Kenya. With a backbone of support from governments around the world, in the field of alternative energy, we are increasing the volume of investments in new projects in 2021 to increase the company’s total production to 1.5. Giga by the end of 2023.

The company has released a forecast for the coming year that has disappointed investors and is sending the stock down about 7% this morning, according to which it expects a revenue range of between $ 640-675 million, down 4.5-95 compared to 2020 revenue.

The company also estimates that the adjusted Ebitda will be in the range of $ 400-410 million in 2021, about 3-5% lower than the adjusted profit in the past year.

Source