Ormat Technologies Inc.

Published : August 04th, 2015

Edited Transcript of ORA earnings conference call or presentation 4-Aug-15 1:00pm GMT

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Edited Transcript of ORA earnings conference call or presentation 4-Aug-15 1:00pm GMT

RENO Aug 4, 2015 (Thomson StreetEvents) -- Edited Transcript of Ormat Technologies Inc earnings conference call or presentation Tuesday, August 4, 2015 at 1:00:00pm GMT

TEXT version of Transcript

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Corporate Participants

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* Jeff Stanlis

MS/Hayden - IR

* Doron Blachar

Ormat Technologies, Inc. - CFO

* Isaac Angel

Ormat Technologies, inc. - CEO

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Conference Call Participants

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* Paul Coster

JPMorgan - Analyst

* Dan Mannes

Avondale Partners - Analyst

* JinMing Liu

Ardour Capital - Analyst

* Ella Fried

Leumi - Analyst

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Presentation

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Operator [1]

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Good day and welcome to the Ormat Technologies' Second Quarter 2015 Earnings Conference Call. All participants will be in listen-only mode. (Operator Instructions) Please note this event is being recorded.

I would now like to turn the conference over to Jeff Stanlis, MS/Hayden, IR. Please go ahead, sir.

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Jeff Stanlis, MS/Hayden - IR [2]

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Thank you, operator. Hosting the call today are Isaac Angel, Chief Executive Officer and Doron Blachar, Chief Financial Officer, as well as Smadar Lavi, Vice President of Corporate Finance and Investor Relations.

Before beginning, we'd like to remind you that the information provided during this call may contain forward-looking statements relating to current expectations, estimates, forecasts and projections about future events that are forward-looking as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally relate to the Company's plans, objectives, and expectations for future operations and are based on management's current estimates and projections, future results or trends. Actual future results may differ materially from those projected as a result of certain risks and uncertainties. For a discussion of such risks and uncertainties, please see risk factors, as described in Ormat Technologies Annual Report on Form 10-K filed with the SEC.

In addition, during the call, we will present non-GAAP financial measures such as EBITDA and adjusted EBITDA. Reconciliations to the most directly comparable GAAP measures and management reasons for presenting such information is set forth in the press release that was issued last night, as well as the slides posted on the Company's website. Because these measures are not calculated in accordance with US GAAP, they should not be considered in isolation in the financial statements prepared in accordance with GAAP.

Before I turn the call over to management, I would like to remind everyone that a slide presentation accompanying this call may be accessed on the Company's website at www.ormat.com under the Events & Presentations link that's found on the Investor Relations tab.

With all that said, I would now like to turn the call over to Isaac Angel. Isaac, the call is yours.

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Isaac Angel, Ormat Technologies, inc. - CEO [3]

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Thank you very much Jeff and good morning everyone. Thank you for joining us today for the presentation of our second quarter 2015 results. I'll start with slide number 4.

The second quarter was a strong quarter in which we delivered both revenue and profit growth. Similar to the first quarter this year, oil and natural gas prices had a material impact on our Electricity segment. However, the new capacity that came online along with the improved efficiency of our operating portfolio mitigated this impact and supported good results in the segment. This is a direct outcome of the enhancements and improvements we are implementing throughout the entire value chain.

This quarter, we also had a progress with our expansion plan and began executing our initiatives to set the stage for our next growth phase. As we have stated, our multi-year plan is designed to elevate Ormat from a leading geothermal company to a recognized global leader in the larger renewable energy industry.

I'd like now to turn the call over to Doron to discuss our financial results for the quarter.

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Doron Blachar, Ormat Technologies, Inc. - CFO [4]

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Thank you, Isaac, and good morning everyone. Let me start by providing an overview of our financial results for the second quarter ended June 30, 2015.

Starting with slide 6, total revenue for the second quarter of 2015 were $140.5 million compared to $127.6 million in the second quarter of 2014, with 65% of revenue coming from the Electricity Segment. In our Electricity Segment, as you can see on slide 7, revenues were $90.9 million in the second quarter of 2015 compared with $91.7 million in the second quarter of last year. The slight decrease was mainly due to lower energy rates, resulting from lower oil and natural gas prices that amounted to approximately $9 million. Additionally, we had lower generation at Puna power plant due to the oilfield maintenance that was required as a result of last summer hurricane. The decrease was partially offset by the contribution from the second phase of McGinness Hills in Nevada. McGinness Hills was also the main driver for the 12.4% increase in our generation program. Following our risk management policy, we recently entered into the (inaudible) transaction to reduce 50% of power exposure to fluctuations in natural gas prices at a fixed price of $3 per MMBTU until December 31, 2015.

In the Product Segment on slide 8, revenues were $49.6 million compared to $35.9 million in the second quarter of 2014, which represented a 38% [income]. As many of you already know our Product Segment is characterized by fluctuations in quarterly revenue. In the first quarter, we accelerated the construction of the Don Campbell phase 2 project in order to commence commercial operation by the end of 2015. And in the second quarter, we focused on delivering against our backlog to third parties. We remain on schedule with our contracts with third party customer and on track with our full-year guidance.

Moving to slide 9, the Company combined gross margin for the second quarter was 36.1%, compared to 31.3% in the second quarter of 2014. In the Product Segment, gross margin was 45.2% compared to 43.4% in the prior year's quarter. I would like to emphasize that the Product Segment gross margin vary between the quarters and should be analyzed on a yearly basis. In the Electricity Segment, gross margin was 31.2% compared to 26.6% last year. As Isaac mentioned in his opening remarks, this is mainly a result of increasing efficiency that is translated to higher margins despite the significant impact of the lower oil and natural gas prices on our revenue.

Moving to slide 10. Second quarter operating income was $38.6 million compared to $22.3 million in the second quarter of 2014. Excluding an $8.1 million write-off in the second quarter of last year, we had an increase of 27% in operating income. Operating income attributable to our Electricity Segment for the second quarter of 2015 was $20.9 million compared to $9.5 million for the second quarter of last year. Operating income attributable for our Product Segment was $17.7 million compared to $12.8 million in the second quarter of 2014.

Moving to slide 11. Interest expense, net of capitalized interest, for the second quarter of 2015 was $18.9 million compared to $22.1 million last year. This decrease was primarily due to lower interest expense, as a result of debt payment, partially offset by an increase in interest expense related to a new loan we took in August 2014 to finance the construction of the second phase of McGinness Hills power plant.

Moving to slide 12. Net income attributable to the Company stockholders for the [quarter] of 2015 was $14.4 million or $0.28 per diluted share in the second quarter of 2015 compared to $9.1 million or $0.20 per share basic and diluted for the second quarter of 2014. The net income includes $1.7 million related loss from extinguishment of liability, resulted from the partial repurchase of OFC senior secured notes, as well as $0.4 million expense associated with due diligence related to a potential M&A transaction we were evaluating. After the evaluation, we made the decision not to pursue the transaction. Although this transaction, it didn't come to provision, it demonstrates our intention to identify appropriate and accretive acquisition opportunities. Both expenses are adjusted to our EBITDA.

Please move to slide 13. Adjusted EBITDA for the second quarter of 2015 was $67.8 million compared to $61.8 million in the same quarter last year. Turning to slide 14. Cash and cash equivalents as of June 30, 2015 was $137.7 million. We generated $112.7 million in cash from operating activities. The accompanying slide breaks down the use of cash during the first half of 2015. Our long-term debt as of June 30, 2015 and the payment schedules are presented on slide 15 of the presentation. The average cost of debt for the Company stands at 6.07%.

Turning to slide 16 for financing update. During the quarter, we repurchased certain portion of OFC senior secured note for $30.6 million. The repurchase of the OFC loan will save the Company an annual interest expense of approximately $2.5 million over the next three years. On Friday, we closed a 12-year limited-recourse term loan in the principal amount of $42 million to refinance 20 megawatt Amatitlan power plant in Guatemala. Under the agreement with Banco Industrial, Guatemala's largest bank and its affiliate Westrust Bank, Ormat has the flexibility to expand the Amatitlan power plant whose financing to be provided either via equity, additional debt from Banco Industrial or from other lenders. Funding of this loan is expected shortly. This agreement replaces the senior secured project loan from AIG Global, formerly TCW, which Ormat signed in May 2009 and prepaid in full in September 2014 from corporate funds.

On August 3, 2015, Ormat's Board of Directors approved payment of a quarterly dividend of $0.06 per share for the second quarter. The dividend will be paid on September 2, 2015 to shareholders of record as of closing of business on August 18, 2015. In addition, the Company expects to pay a quarterly dividend of $0.06 per share in the next quarter.

That concludes my financial overview. I would like now to turn the call to Isaac for an operational and business update. Isaac?

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Isaac Angel, Ormat Technologies, inc. - CEO [5]

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Thank you, Doron. Starting with slide 18 for an update on operations. Our portfolio generation in the second quarter increased by 12.4% from 1 million megawatt hours to 1.2 million megawatt hours in the second quarter 2015. This increase is mainly due to contribution of McGinness Hills complex. The generation increase was offset by lower generation in the Puna plant in Hawaii, due to the well field maintenance related to last year's hurricane.

Moving to slide 19 to other projects. We are on track with the construction of Don Campbell phase 2 in Nevada and are expecting it online towards the end of this year. In Olkaria, Kenya, we are on schedule with the construction of the 24 megawatt expansion. The fourth plant is expected to bring the complex generation capacity up to 134 megawatts and the commercial operation is expected in the second half of 2016.

And with regards to Sarulla, Indonesia, engineering, procurement and construction are in progress, and infrastructure work has been completed. The consortium has successfully drilled part of the planned production well and drilling of additional production and injection wells is underway. The first phase is expected to commence operation in the second half of 2016 and the remaining two phases are scheduled to commence within 18 months thereafter.

The projects I just described, as well as additional projects under various stages of development are expected to add between 90 megawatts and 115 megawatts by the end of 2017.

Besides the investments in new projects, we are continuing our exploration and business development activities to support future growth. If you could please turn to slide 20, you will see our CapEx requirements for the remainder of 2015. We plan to invest a total of $50 million in capital expenditures on new projects under construction and enhancements. An additional $29 million are budgeted for development, exploration activities, maintenance capital for debt repayment -- for operation projects and investments in machinery and equipment. In addition, $37 million will be required for debt repayment.

Turning to slide 21 for an update on Product Segment. In May, we signed approximately $100 million EPC contract for a geothermal project in Chile. Our backlog as of August 3 stands at $347.5 million and it will support our revenues in the next two to three years.

Moving to slide 22 for a regulatory update. We continue to see strong demand for renewable energy. Moreover, jurisdictions around the world are increasingly seeing the positive value of geothermal as a stable base for the renewable technology, and legislation being considered in many countries. We believe that these initiatives will boost long-term demand.

The market opportunity in the US was further reinforced yesterday when President Obama announced the US Environment Protection Agency's final Clean Power Plan. The plan will cut US carbon pollution from the power sector by 870 million tons or 32% below 2005 levels in 2030. While power plants are responsible for approximately one-third of all carbon dioxide emissions in the United States, there were no nation limit on carbon pollution until today. The plan is expected to drive more aggressive investment in clean energy technology, placing a significant emphasis on renewable energy resources aimed at cutting wasted energy, improving efficiency and reducing pollution.

Under the plan, states are required to identify [best] forward using either current or new electricity production and pollution control policies to meet the goals of the program. The compliance period begins in 2022, which gives states and utilities seven years from planning and early implementation. We expect that this plan will benefit renewable resource developers and will further support our initiatives to pursue our multi-year plan.

Another encouraging development in the United States two weeks ago, the Senate tax writing committee passed a bill extending the PTC for geothermal projects that will begin construction by 2016 and commencing operation by 2018. The legislation needs to pass the House and the full Senate to become a law. If passes, we anticipate a number of projects to benefit from this legislation. The acknowledgment of renewable benefit in regulation support, as well as the energy shortage in many of the developing countries, create opportunities for Ormat.

In my opening remarks, I mentioned ongoing efforts to evaluate and implement our multi-year plan. This plan has several moving parts and a long-term view and we will share more details in the upcoming calls. I'm confident that we will be able to capitalize on the opportunities before us, and believe Ormat is uniquely positioned to succeed in the evolving renewable market.

Turning to slide 23, we reiterate our 2015 revenue guidance. Oil and gas prices remain a reducing factor in our electricity revenues and we expect its annual impact to increase and be approximately $28.6 million. We expect the Electricity Segment revenues to be between $380 million and $390 million and Product Segment revenues to be between $180 million and $190 million, for total revenues of between $560 million and $580 million. We reiterate our adjusted EBITDA guidance of $280 million to $290 million for the full year. We expect Northleaf's portion of the 2015 annual adjusted EBITDA guidance to be approximately $14 million.

And that concludes our remarks for today. Thank you for your continued support. And now for the questions, operator, if you please.

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Questions and Answers

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Operator [1]

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(Operator instructions) Paul Coster, JPMorgan.

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Paul Coster, JPMorgan - Analyst [2]

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The first one really relates to oil and gas prices. Are all of your electricity contracts, do they have some sensitivity to oil and gas prices? Perhaps you can give us some color around that, and also on a go forward basis, the new PPAs that get signed are they also expressing sensitivity to oil and gas?

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Isaac Angel, Ormat Technologies, inc. - CEO [3]

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And all our new PPAs, they don't have any connection to oil and gas prices. We have three old contracts actually that they are -- two of them are linked to the gas prices and one of them in Hawaii, Puna is linked to the oil price. One of these gas price linked contracts is going away at the end of this year, which means about one-third of our exposure is going -- more less is going away by the end of this year and we will remain with two more -- two years. And then we will remain only with one of them for a long time to come.

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Paul Coster, JPMorgan - Analyst [4]

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And on a go-forward basis, new PPAs will not include a sensitivity to gas and oil, is that a correct statement?

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Isaac Angel, Ormat Technologies, inc. - CEO [5]

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That's correct.

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Paul Coster, JPMorgan - Analyst [6]

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And then my follow-up question is obviously, you delivering against backlog here and so the backlog still pretty healthy, but it's coming down. I imagine though you've got a lot of stuff in your late-stage pipeline, Can you give us any color regarding the components of the late-stage pipeline? Is it all sort of the traditional Ormat business? Are you starting to a see broader suite of renewables in that portfolio? Can you give us some sense of what the geographies might be and what kind of timeline before we see it start to enter sort of contractual stage?

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Isaac Angel, Ormat Technologies, inc. - CEO [7]

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Paul, as you mentioned before, we've a very healthy pipeline. We just added a $100 million to the pipeline a quarter ago, which is the contract we signed in Chile for EPC. And we should also remember that we've a serious amount of pipeline -- in the pipeline of Sarulla projects that it will be running with us until 2018, and we don't expect every month or every quarter to sign a $100 million or $200 million deal.

On the other hand, we've small deals that are adding to the pipeline, which will be probably joining us before the end of this year, but from the product sales point of view, the Company is concentrating today mainly in few countries in South America, Africa and Far East. We are expecting -- we have, as you mentioned before, we have few deals on that are close to fruition. We don't know if they're going to hit sometime Q3, Q4 or next year. In any case, we feel very comfortable from the backlog point of view looking forward two to three years.

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Operator [8]

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Dan Mannes, Avondale Partners.

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Dan Mannes, Avondale Partners - Analyst [9]

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So the first question for Isaac, you talked a lot about the regulatory backdrop, but I want to talk about what's going on real-time and we've seen a number of power purchase agreements signed in Texas and California and Nevada, at some very, very low prices for solar. I was wondering if you could talk at all about geothermal's competitiveness in this kind of environment? Number one. And number two, maybe cross reference that with some of your initiatives as it relates to direct to consumer sales, because I guess I'm trying to figure out what the outlook is for new plants in that kind of environment.

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Isaac Angel, Ormat Technologies, inc. - CEO [10]

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And Dan, as you know, we will not -- we don't have the liberty to talk about PPAs which are under discussion or preparation or at the final stage. We only announce them up after they're signed, but obviously we're aware of those low priced solar PPAs that were signed in the last few weeks, but regardless, and you know that there is a huge advantage between an intermittent power which is affecting the grid, and on the other hand, baseload power, which is adding to the stability of the grid. There is still more than certain appetite for geothermal PPAs that we are working on, and that -- the most I can say at this stage, I'm not worried on the immediate stage in the States. The case can change in the upcoming years. But that's why the Company has changed, not changed, but added focus in going elsewhere and we changed the whole structure of our sales and marketing team with focusing on countries, which is outside of the US, which the appetite for geothermal is not necessarily driven against solar prices, but are driven because of other reasons, which are availability of the resource, access to the resource and frankly, lack of energy and other political reasons even in some countries that are driving these requests. And those markets, in one hand, are pushing our product sales and in other hand are pushing our ability to build our own power plants. And we have new concessions in new African countries that we got and I think, overall looking, I'm very optimistic in the future.

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Dan Mannes, Avondale Partners - Analyst [11]

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So, if I can just briefly summarize and make sure I understand. So from your perspective, even in spite of how low solar may be going, there is still enough of an advantage for being baseload that you can get a relative premium price that makes it attractive to continue to develop both US and abroad right now?

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Isaac Angel, Ormat Technologies, inc. - CEO [12]

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That is absolutely true, at least in the immediate years in the US.

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Dan Mannes, Avondale Partners - Analyst [13]

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And then two other quick questions --

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Isaac Angel, Ormat Technologies, inc. - CEO [14]

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[It will not be] true within the next five years, because we don't know.

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Dan Mannes, Avondale Partners - Analyst [15]

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In your project development, you obviously gave us an update on both Olkaria III as well as Campbell 2. Can you maybe give us any update on what's going on at Menengai, as well as (inaudible), I know those are a kind of the next two projects that you identify that I think we still have hopefully coming online in 2017.

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Isaac Angel, Ormat Technologies, inc. - CEO [16]

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Menengai is still at the lender stage, which means we went beyond certain stages in the process and we're -- we've located lenders and we're working to finalize the contracts with them and it's a go project at this stage. And on (inaudible) we're in exploration phase and we have successfully went few exploration phases, but we didn't finish yet. And unfortunately, I cannot say it's a go project yet. I'm very optimistic and positive, but we will let you guys know in due time.

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Dan Mannes, Avondale Partners - Analyst [17]

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And then lastly, just on the Product side, we looked at the margin in the quarter, obviously very strong, we know they're lumpy. But can you just confirm was there anything unique in this quarter? I don't know if you had a project closing out or something that happened that maybe helped margins out?

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Isaac Angel, Ormat Technologies, inc. - CEO [18]

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Yes. We have few projects in this quarter and the upcoming few quarters, which I don't want to mention name because of obvious reasons, which are more profitable than the others. As Doron mentioned, this profitability we will not be able to maintain in the long-term of years, but this will be [weakened], maybe run in this rate a few quarters and then it will be on the regular pace.

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Doron Blachar, Ormat Technologies, Inc. - CFO [19]

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It's Doron, Dan. If I may add, I think that when you look at the Product Segment, the best way to look at the margin is to look at the 12 month trailing and see over the last four quarters and then 12 months back, and then move back a few quarters and see you can get probably a much more standardized margins than just looking into one quarter or fiscal year, but just do 12-month trailing for the quarter.

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Operator [20]

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(Operator Instructions) JinMing Liu, Ardour Capital.

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JinMing Liu, Ardour Capital - Analyst [21]

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First of all, regarding the EPA Clean Power Plan announced yesterday, my understanding is that that plan will be ultimately enforced by each individual state. Given the locations of your facilities, do you kind of limited by the user demand for clean energy within those states, or do you have the ability to export power through other states that is in need of clean energy?

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Isaac Angel, Ormat Technologies, inc. - CEO [22]

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It is very individual to a state. There are states that we're -- we've the ability to export, such as between Nevada and California. But on the other hand, there're other states that limit the import of power from other states. And then you have to look at this on a state-by-state basis. As a matter of fact, we have today a few contracts which are interstate as we speak.

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JinMing Liu, Ardour Capital - Analyst [23]

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I'll switch to the Northleaf transaction. It just looks like to me, of course, the proceed was allocated to equity. So, what was the expected accounting treatment for their investments?

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Doron Blachar, Ormat Technologies, Inc. - CFO [24]

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The way the allocation of the cash was that it is split between two parts, both of them in the equity. One is the non-controlling interests, that represents the equity part of what they acquired. And there was an additional paid-in capital increase that represents basically the theoretical profit that Ormat has from this transaction. According to US GAAP, unless you sell control, you cannot recognize the revenue from selling equity. You put it into additional paid-in capital.

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JinMing Liu, Ardour Capital - Analyst [25]

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Lastly, regarding the cost of the electricity in the second quarter, it increased slightly against the first quarter, even I back out the benefit from the first quarter. How much was [arbitrarily] the start-up costs regarding from the McGinness Hills second phase?

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Isaac Angel, Ormat Technologies, inc. - CEO [26]

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You are talking on dollar basis or megawatt hour basis?

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JinMing Liu, Ardour Capital - Analyst [27]

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Just dollar.

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Isaac Angel, Ormat Technologies, inc. - CEO [28]

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On dollar basis? Do we give dollar number basis?

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Doron Blachar, Ormat Technologies, Inc. - CFO [29]

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We don't usually --

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Isaac Angel, Ormat Technologies, inc. - CEO [30]

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We don't disclose the dollar amount per power plant basis unfortunately --

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Doron Blachar, Ormat Technologies, Inc. - CFO [31]

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But obviously you can expect the second phase in the power plant has the relatively low additional costs compared to the revenue yields, most of the existing men power and so the additional cost is lower than a new power plant.

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Isaac Angel, Ormat Technologies, inc. - CEO [32]

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But JinMing, I want to mention here something that you should be aware of the fact that since the last three quarters, we are basically concentrating on each and every power plant and trying to effect the profitability of those power plants. And not necessarily -- and sometimes even reducing the generators' output on the --against the increasing profitability. We have few power plants, the generation was simply cut by the fact that we stopped a very old steam turbine, which effectively were not profitable. So you can see in our few power plants that the generation went down, but the profitability went up seriously. And if you look at our profitability of the Electricity Segment, it is going on a quarter-on-quarter basis. So just comparing the total generation quarter-after-quarter is not necessarily only the addition of the new power plants, but sometimes there is also a reduction of some megawatt hours comparing to the quarter before.

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Operator [33]

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Ella Fried, Leumi.

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Ella Fried, Leumi - Analyst [34]

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I also have three questions; two of them are follow-up questions. The first one is to Dan's question, your plans to expand in the solar business, are they still intact? I didn't quite get it. Are they still intact in terms of expanding in US or outside the US, and then how do you view all the recent developments. In addition to what you mentioned regarding the baseload?

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Isaac Angel, Ormat Technologies, inc. - CEO [35]

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First of all, I want to clarify something. We are not abandoning the geothermal and becoming a solar developer. That was never the intention --

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Ella Fried, Leumi - Analyst [36]

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It's clear.

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Isaac Angel, Ormat Technologies, inc. - CEO [37]

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And the idea was that wherever it's possible we will be able also to offer a solar solution, which we are doing. That's mainly relating to C&I customers, which are enterprise customers, which are looking for a comprehensive solution to their electricity problem, if we may call it. And this -- and when we're offering them a solution, this solution may also include a solar plant and we've a pipeline of those types of offer that we are working on in the US, but mainly out of the US. And as I said before, we will not become a solar developer out of the blue; that was not the intention.

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Ella Fried, Leumi - Analyst [38]

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So, it's more of using the existing infrastructure and adding solar megawatts and other forms of energy that are available at their location?

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Isaac Angel, Ormat Technologies, inc. - CEO [39]

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Yes, this is -- and also we're working very diligently, which is not easy thing to do, to add solar complementary power into our existing facility. It is something that we're working on for a long time now and not very successfully so far, but I'm optimistic. We all realize that from the logical point of view, it works. Unfortunately, from the PPAs and [VUC] point of view, it's a difficult thing to do. But we're -- I am personally very optimistic yet and we're working on it diligently and that was the idea with the solar.

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Ella Fried, Leumi - Analyst [40]

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About your exposure to natural gas, I just couldn't catch it. In terms of megawatts, how many megawatts will be left exposed to natural gas in the end of 2015?

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Isaac Angel, Ormat Technologies, inc. - CEO [41]

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We've today about 140 megawatts that are exposed to natural gas prices out of the almost 650 megawatts that we have. Out of this 140 megawatts, about a third (technical difficulty) the relationship together, we've signed already a contract in [Heburn] that kicks in at the end of this year. So, in 2016, we see about 100 megawatt only tied to natural gas pricing. We have also -- when we signed the [Heburn] contracts, we said that we explained it will increase EBITDA by about $8 million just in changing price. And out of the 100 megawatts that are left, we've about half of that, about 50 megawatt. The contract ends at the end of 2017, and the rest is further down the road.

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Ella Fried, Leumi - Analyst [42]

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And the last question, you mentioned that North Brawley incurred some expenses. Does it mean that it's not -- is it breakeven operationally or is it breakeven EBITDA wise or does it incur some more expenses?

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Isaac Angel, Ormat Technologies, inc. - CEO [43]

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North Brawley, as I'd mentioned earlier, this is on slide 7, had higher costs in Q2 of last year, this quarter it has the lower cost. The plant is still not profitable and we're working very hard and diligently to bring it to be profitable. Again, we made lots of changes in North Brawley. When I arrived at Ormat a bit more than a year ago, this is one of the challenges we took as new management. And I'm certain that we will be able to overcome this challenge and bring this plant to be profitable. As I said, we did lots of changes in North Brawley during the last two quarters.

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Ella Fried, Leumi - Analyst [44]

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And one more fifth question to Doron, income tax provision went up about $1 million approximately. Is there an explanation?

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Doron Blachar, Ormat Technologies, Inc. - CFO [45]

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It basically relates to the higher profit that we have before, Income tax as a percentage wise it seems it went down a little bit. And in addition, according to US GAAP, the tax provision is done on a forecasted basis, basically you look at the entire year. It went up, the profit also went up in parallel.

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Operator [46]

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And ladies and gentlemen, at this time we will conclude the question-and-answer session. I would like to hand the call back to management for any closing remarks.

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Isaac Angel, Ormat Technologies, inc. - CEO [47]

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And good morning again ladies and gentlemen. Thank you very much for your ongoing support, and we'll be probably seeing you during the quarter on our road show. Thank you very much. Bye bye.

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Operator [48]

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Ladies and gentlemen, the conference has now concluded. We thank you for attending today's presentation. You may now disconnect your lines.

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Ormat Technologies Inc.

CODE : ORA
ISIN : US6866881021
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Ormat technologies is based in United states of america.

Ormat technologies holds various exploration projects in Indonesia and in USA.

Its main exploration properties are HEBER in USA and SARULLA in Indonesia.

Ormat technologies is listed in Germany and in United States of America. Its market capitalisation is US$ 4.3 billions as of today (€ 3.7 billions).

Its stock quote reached its highest recent level on February 26, 2021 at US$ 98.73, and its lowest recent point on January 09, 2023 at US$ 84.40.

Ormat technologies has 50 597 124 shares outstanding.

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2008 Annual Report
Financings of Ormat Technologies Inc.
5/19/2016Ormat Technologies Secures $36 Million Supply & EPC Contract...
5/23/2014(Sarulla)Sarulla Consortium Reached Financial Closing Under the $1.17...
Financials of Ormat Technologies Inc.
5/25/2016Document: Insider Ownership
5/4/2016Ormat Technologies Reports First Quarter Revenue of $151.6 M...
11/4/2015Ormat Technologies Reports 2015 Third Quarter Results
8/3/2015Ormat Technologies Reports 2015 Second Quarter Results
2/26/2014Reports 2013 Fourth Quarter and Year End Results
11/5/2013Reports 2013 Third Quarter Results
8/7/2013Reports 2013 Second Quarter Results
Project news of Ormat Technologies Inc.
7/27/2017Document: Ownership Filing
7/5/2016Document: Insider Ownership
Corporate news of Ormat Technologies Inc.
8/10/2016Document: Insider Ownership
8/3/2016Ormat Technologies beats 2Q profit forecasts
8/2/20165:05 pm Ormat Tech beats by $0.07, beats on revs; reaffirms ...
4/18/2016SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEME...
1/21/2016Ormat Technologies, Inc. to Host Conference Call Announcing ...
12/10/2015Ormat Technologies, Inc. (ORA): Are Hedge Funds Right About ...
11/4/2015Edited Transcript of ORA earnings conference call or present...
11/4/2015Ormat Technologies meets 3Q profit forecasts
11/3/20155:56 pm Ormat Tech misses by $0.03, beats on revs; guides FY...
11/3/2015Ms. Dita Bronicki Retiring From Board of Directors
11/3/2015Ormat Technologies Reports 2015 Third Quarter Results
10/15/2015Ormat Technologies, Inc. to Host Conference Call Announcing ...
10/15/2015Ormat and Toshiba Sign Strategic Collaboration Agreement
9/30/2015Herman Miller, AeroVironment, Medicines Company, Ormat Techn...
9/29/2015Carl Icahn Predicts 'Bloodbath': Time to Book Profits?
8/8/201510-Q for Ormat Technologies, Inc.
8/4/2015Edited Transcript of ORA earnings conference call or present...
7/24/2015Weakness Seen in Covanta Holding (CVA): Stock Fall 6% - Tale...
7/16/2015Ormat Technologies, Inc. to Host Conference Call Announcing ...
5/10/201510-Q for Ormat Technologies, Inc.
4/22/20153 Green Stocks for Earth Day - Analyst Blog
4/15/2015Ormat Technologies, Inc. to Host Conference Call Announcing ...
4/15/2015Ormat Signs Power Purchase Agreement for Second Phase of Don...
4/15/2015Ormat Announces Investor & Analyst Day March 31, 2015 in New...
3/19/2015Les nouvelles bonnes pratiques du M3AAWG pour les fournisseu...
3/17/2015New M3AAWG Hosting Service Providers Best Practices Backed b...
3/11/2015La mise à jour du document de bonnes pratiques du M3AAWG à d...
3/11/2015La mise à jour du document de bonnes pratiques du M3AAWG à d...
3/11/2015La mise à jour du document de bonnes pratiques du M3AAWG à d...
3/11/2015La mise à jour du document de bonnes pratiques du M3AAWG à d...
3/11/2015La mise à jour du document de bonnes pratiques du M3AAWG à d...
3/10/2015Updated M3AAWG Best Practices for Senders Urge Opt-In Only M...
2/25/2015Ormat Technologies posts 4Q profit
2/25/2015Ormat Technologies Reports 2014 Fourth Quarter and Year End ...
2/5/2015Ormat Technologies Inc. Announces $175 Million Agreement Wit...
2/2/2015Ormat Technologies, Inc. to Host Conference Call Announcing ...
11/6/2014Ormat Technologies posts 3Q profit
11/26/2013Completes Final Drawdown of $45 Million From OPIC for Final ...
7/12/2011ALERT: New Ormat Technologies Inc event
2/12/2009Commissions the First Two Facilities of the OREG 2 Project
8/6/2007to Supply Recovered Energy Generation Unit to the Italcement...
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