Ormat Technologies Inc. · Q1 2023 earnings

Briefing

Ormat reported strong Q1 2023 financial results, driven by growth in the electricity segment and benefits from the Inflation Reduction Act.

Ormat Technologies reported a 57% increase in net income and a 17.9% increase in operating income, supported by IRA benefits and new asset contributions. Adjusted EBITDA grew by 14.5%. The company commenced operation at its new 25MW North Valley geothermal power plant and at the new 6MW Brady solar facility.

• Net income attributable to the Company’s stockholders and diluted EPS for the first quarter of 2023 increased 57.5% and 54.5%, respectively, versus the prior year.
• Adjusted EBITDA for the first quarter of 2023 was $123.5 million, an increase of 14.5% compared to $107.9 million in 2022, driven by improved operating income results in the Electricity segment including higher income related to tax equity transactions supported by the recognition of PTCs associated mainly with CD4.
• Electricity segment revenues increased 4.8% for the first quarter of 2023, compared to 2022, supported by contributions from Ormat’s portfolio expansion efforts in 2022, including the addition of the CD4, Tungsten, and Heber 2 geothermal power plants.
• Product segment backlog stands at $147 million as of May 9, 2023.

Headline financials

Revenue & EPS history

Ormat expects total revenues between $823 million and $858 million, electricity segment revenues between $670 million and $685 million, product segment revenues between $120 million and $135 million, energy storage revenues between $33 million and $38 million, and Adjusted EBITDA between $480 million and $510 million.