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Sep 30, 2022

Ormat Q3 2022 Earnings Report

Ormat's third quarter performance demonstrated strong growth, driven by electricity and energy storage segments, along with product segment improvement, resulting in operating and net income expansion.

Key Takeaways

Ormat Technologies reported a 10.7% year-over-year increase in total revenues for Q3 2022, driven by growth in the electricity segment. Operating income increased by 8.1% year-over-year. Adjusted EBITDA was $102.2 million, a 0.6% increase compared to 2021, despite the absence of $15.8 million in insurance proceeds received the previous year.

Net income attributable to the Company's stockholders and diluted EPS increased 21.5% and 23.1%, respectively, versus the prior year period.

Adjusted Net income attributable to the Company's stockholders and adjusted diluted EPS increased 5.3% and 2.5%, respectively, compared to last year.

Electricity segment revenues increased 7.1% driven by the Tungsten and CD4 plants and the Puna plant garnering higher capacity along with improved energy rates.

Product segment revenues increased 35.1% to $14.2 million due to new contracts signed in 2022, and backlog grew by approximately 150% compared to the second quarter of 2022, standing at $137.1 million as of November 3, 2022.

Total Revenue
$176M
Previous year: $159M
+10.7%
EPS
$0.33
Previous year: $0.32
+3.1%
Gross Profit
$61.1M
Previous year: $63.1M
-3.2%
Cash and Equivalents
$155M
Previous year: $268M
-42.3%
Free Cash Flow
-$54M
Previous year: -$34.6M
+56.1%
Total Assets
$4.52B
Previous year: $4.36B
+3.8%

Ormat

Ormat

Ormat Revenue by Segment

Forward Guidance

Ormat provided guidance for 2022, including total revenues between $720 million and $735 million and Adjusted EBITDA between $430 million and $442 million.

Positive Outlook

  • Total revenues of between $720 million and $735 million.
  • Electricity segment revenues between $630 million and $638 million.
  • Product segment revenues of between $60 million and $67 million.
  • Energy Storage revenues of $30 million.
  • Adjusted EBITDA to be between $430 million and $442 million, including $15 million for business interruption insurance proceeds, of which $10 million were recorded in the nine months ended September 30, 2022.

Revenue & Expenses

Visualization of income flow from segment revenue to net income