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Sep 30, 2020

Ormat Q3 2020 Earnings Report

Ormat Technologies reported increased operating income and Adjusted EBITDA, driven by strong cashflow from operations and a favorable settlement with the Kenyan tax authorities.

Key Takeaways

Ormat Technologies reported strong Q3 2020 financial results, with double-digit increases in operating income and Adjusted EBITDA. The company reached a favorable settlement with the Kenya Revenue Authority and saw improved cash flow from operations due to payments from customers in Honduras and Kenya. They are updating their full-year 2020 revenue guidance range and increasing their expected 2020 Adjusted EBITDA.

Net income attributable to the Company's stockholders was $15.7 million, or $0.31 per diluted share.

Adjusted EBITDA increased 25.3% to $107.1 million.

Ormat concluded a tax audit by the Kenya Revenue Authority (KRA) and reached a favorable settlement.

Ormat signed a new $12.2 million contract, which resulted in a Product segment backlog of $49.6 million as of November 3, 2020.

Total Revenue
$159M
Previous year: $170M
-6.8%
EPS
$0.31
Previous year: $0.3
+3.3%
Gross Profit
$53.3M
Previous year: $55.5M
-3.9%
Cash and Equivalents
$187M
Previous year: $97.6M
+91.8%
Free Cash Flow
$4.01M
Previous year: -$30.3M
-113.2%
Total Assets
$3.52B
Previous year: $3.26B
+8.0%

Ormat

Ormat

Ormat Revenue by Segment

Forward Guidance

Ormat updated its full year 2020 guidance for total revenues to be between $707 million and $717 million, with electricity segment revenues between $550 million and $555 million, product segment revenues between $142 million and $147 million, and Energy Storage and Management Services segment revenues of approximately $15 million. Adjusted EBITDA is expected to be between $417 million and $425 million.

Positive Outlook

  • Total revenues of between $707 million and $717 million
  • Electricity segment revenues between $550 million and $555 million
  • Product segment revenues of between $142 million and $147 million
  • Energy Storage and Management Services segment revenues of approximately $15 million
  • Adjusted EBITDA of between $417 million and $425 million

Revenue & Expenses

Visualization of income flow from segment revenue to net income