Ormat Technologies Reports Second Quarter 2021 Financial Results

Continues to Deliver Top Line Growth in Electricity and Energy Storage Segments

Increases 2021 Revenue Annual Guidance, Reflecting Contributions From Recently Acquired Geothermal Assets

Increased Product Segment Backlog to $59 Million

RENO, Nev., Aug. 04, 2021 (GLOBE NEWSWIRE) -- Ormat Technologies, Inc. (NYSE: ORA) today announced financial results for the second quarter ended June 30, 2021.


 Q2 2021Q2 2020Change (%)H1 2021H1 2020Change (%) 
GAAP Measures         
Revenues ($ millions)       
Electricity133.9 128.7  4.0 %278.9 271.5  2.7 % 
Product7.4 43.7  (83.0)%16.1 91.1  (82.4)% 
Energy Storage5.6 2.5  123.8 %18.3 4.4  320.8 % 
Total Revenues146.9 174.9  (16.0)%313.3 367.0  (14.6)% 
Gross margin (%)       
Electricity37.4%44.1 % 41.3%47.2 %  
Product20.1%20.6 % 12.8%21.3 %  
Energy Storage6.4%(13.6)% 45.2%(10.2)%  
Gross margin (%)35.4%37.4 % 40.1%40.1 %  
Operating income ($ millions)28.6 48.1  (40.5)%78.5 109.1  (28.1)% 
Net income attributable to the Company’s
stockholders ($ millions)
Diluted EPS ($)0.230.45(48.9)%0.500.95(47.4) % 
Non-GAAP Measures 1       
Adjusted Net income attributable to the
Company’s stockholders ($ millions)
13.0 23.0(43.5)% 37.149.1(24.4)% 
Adjusted Diluted EPS ($)0.23 0.45(48.9) % 0.660.95(30.5)% 
Adjusted EBITDA1 ($ millions)84.5 97.9  (13.6)%183.8 203.9  (9.9) % 

“We continue to deliver growth in our Energy Storage and Electricity segments, while simultaneously signing new contracts in our Product segment, which increased our backlog by 59%,” commented Doron Blachar, Chief Executive Officer. “In our Energy Storage segment, we again delivered triple-digit year-over-year revenue growth supported by the Pomona asset. Our Electricity segment, with the combination of a successful expansion of our McGinness Hills Phase 3 geothermal power plant and the return of Puna to electricity generation, positively impacted the quarter. The McGinness Hills expansion increased the complex’s total capacity to approximately 160MW, which is higher than originally expected. Furthermore, with the addition of the recently acquired Dixie Valley and Beowawe assets, combined with our internal growth, we are on track to achieve our long-term goal of increasing Ormat’s combined geothermal, energy storage and solar generating portfolio to more than 1.5 GW by 2023.”

“In the second quarter, Electricity segment results were impacted by mostly temporary issues related to the Olkaria, Steamboat and Brawley complexes, which reduced our Electricity gross profit by approximately $8.0 million, and, coupled with lower Product sales, negatively impacted the quarter and our annual guidance,” continued Mr. Blachar. “However, the Covid-related impact on our Products segment has begun to dissipate, as evidenced by the large increase in our Product segment backlog and the steady and accelerating strengthening of our sales pipeline. We believe the recovery of our Product segment along with the significant portfolio growth coming from our Electricity and Energy Storage segments supports our target of an annual run-rate of more than $500 million in Adjusted EBITDA towards the end of 2022.”


  • Net income attributable to the Company's stockholders was $13.0 million, or $0.23 per diluted share, compared to $23.0 million, or $0.45 per diluted share in the second quarter of last year, representing a decrease of 43.5% and 48.9%, respectively, mainly as a result of the lower revenue in the Product segment and lower gross profit at the Electricity segment;
  • Adjusted EBITDA decreased 13.6% to $84.5 million, from $97.9 million in the second quarter of last year, mainly due to a $7.5 million reduction in Product segment gross profit this quarter, the low performance in some of the power plants in the Electricity segment and an increase in SG&A expenses. (a reconciliation of GAAP net income to EBITDA and Adjusted EBITDA is set forth below in this release);
  • Electricity segment revenues increased by 4.0% to $133.9 million compared to the second quarter of last year, supported by a contribution from the newly added McGinness Hills Complex expansion and from Puna’s resumed operations, partially offset by under performance in the Olkaria complex in Kenya due a combination of curtailments and lower resource performance. Management expects to restore the Olkaria complex’s generating capacity towards the end of 2021 and expects the Puna complex to generate approximately 30 MW by the end of the year;
  • Product segment revenues decreased 83.0% to $7.4 million, down from $43.7 million in the same quarter last year, impacted primarily by COVID-19;
  • Energy Storage segment revenues were $5.6 million compared to $2.5 million in the same quarter last year. The increase was mainly related to revenues from our Pomona asset, which was acquired in July 2020, and the commencement of Vallecito, both located in California;
  • Product segment backlog grew by 59% to $59.1 million as of August 4, 2021; Ormat secured new agreements including a contract with Star Energy Geothermal to supply products to support the 14 MW Salak geothermal project in Indonesia;
  • Ormat completed the acquisition of TG Geothermal Portfolio, LLC (a subsidiary of Terra-Gen, LLC). Ormat paid $171 million in cash for 100% of the equity interests in a portfolio of entities and assumed debt and associated lease obligations of approximately $206 million book value as of June 30, 2021. The acquired entities own, among other things, two operating geothermal power plants in Nevada comprising the 56 MW (net) Dixie Valley geothermal power plant, one of the largest geothermal power plants in Nevada, and the 11.5 MW Beowawe geothermal power plant, as well as the rights to Coyote Canyon, a greenfield development asset adjacent to Dixie Valley with high resource potential, and an underutilized transmission line, capable of handling between 300MW and 400MW of 230KV electricity, connecting Dixie Valley to California;
  • The Puna power plant generated approximately 25 MW during the second quarter of 2021, and we recently reached 28 MW following the repair of one of the turbines. We expect the Puna complex to generate approximately 30 MW by the end of the year. While management believes the PUC information requests regarding the new PPA signed with HELCO will ultimately be resolved, Ormat will continue selling electricity under its existing long-term PPA until the new PPA takes effect;
  • The expansion of Ormat’s McGinness Hills Phase 3 geothermal power plant in Eastern Nevada was completed, increasing the net capacity by approximately 15 MW and bringing the entire McGinness Hills complex capacity to a total of approximately 160 MW, which is higher than initially expected; and
  • Ormat signed a 15-year PPA with the Clean Power Alliance (CPA), the fifth largest electricity provider in California and the single largest provider of 100% renewable energy to customers in the nation. 

1 Reconciliation is set forth below in this release


  • Total revenues of between $650 million and $685 million;

  • Electricity segment revenues between $585 million and $595 million;

  • Product segment revenues of between $40 million and $60 million;

  • Energy Storage revenues of between $25 million and $30 million;

  • Adjusted EBITDA to be between $400 million and $410 million;

    • Adjusted EBITDA attributable to minority interest of approximately $31 million.

As we noted in previous quarters, Adjusted EBITDA assumed insurance proceeds related to the 2018 insurance Puna claim of $10 million.

The Company provides a reconciliation of Adjusted EBITDA, a Non-GAAP financial measure for the three and six months ended June 30, 2021. However, the Company is unable to provide a reconciliation for its Adjusted EBITDA guidance range due to high variability and complexity with respect to estimating forward looking amounts for impairments and disposition and acquisition of business interests, income tax expense, and other non-cash expenses and adjusting items that are excluded from the calculation of Adjusted EBITDA.


On August 4th, 2021, the Company’s Board of Directors declared, approved, and authorized payment of a quarterly dividend of $0.12 per share pursuant to the Company’s dividend policy. The dividend will be paid on September 1st, 2021, to stockholders of record as of the close of business on August 18, 2021. In addition, the Company expects to pay a quarterly dividend of $0.12 per share in the next quarter.


Ormat will host a conference call to discuss its financial results and other matters discussed in this press release on Thursday, August 5th, at 10 a.m. ET. The call will be available as a live, listen-only webcast at investor.ormat.com. During the webcast, management will refer to slides that will be posted on the website. The slides and accompanying webcast can be accessed through the News & Events in the Investor Relations section of Ormat’s website.

An archive of the webcast will be available approximately 60 minutes after the conclusion of the live call.
Investors may access the call by dialing:

Participant dial in (toll free):1-877-511-6790
Participant international dial-in:1-412-902-4141
Conference replay 
US Toll Free:1-877-344-7529
International Toll:1-412-317-0088
Replay Access Code:10158320



With over five decades of experience, Ormat Technologies, Inc. is a leading geothermal company and the only vertically integrated company engaged in geothermal and recovered energy generation (“REG”), with robust plans to accelerate long-term growth in the energy storage market and to establish a leading position in the U.S. energy storage market. The Company owns, operates, designs, manufactures and sells geothermal and REG power plants primarily based on the Ormat Energy Converter – a power generation unit that converts low-, medium- and high-temperature heat into electricity. The Company has engineered, manufactured and constructed power plants, which it currently owns or has installed for utilities and developers worldwide, totaling approximately 3,200 MW of gross capacity. Ormat leveraged its core capabilities in the geothermal and REG industries and its global presence to expand the Company’s activity into energy storage services, solar Photovoltaic (PV) and energy storage plus Solar PV. Ormat’s current total generating portfolio is 1.1 GW that comprises a 1,015 MW of geothermal and Solar portfolio that is spread globally in the U.S., Kenya, Guatemala, Indonesia, Honduras, and Guadeloupe and an 83 MW energy storage portfolio that is located in the U.S.


Information provided in this press release may contain statements relating to current expectations, estimates, forecasts and projections about future events that are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally relate to Ormat's plans, objectives and expectations for future operations and are based upon its management's current estimates and projections of 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, see "Risk Factors" as described in Ormat’s Form 10-K filed with the Securities and Exchange Commission (“SEC”) on February 26, 2021 and from time to time, in Ormat’s quarterly reports on Form 10-Q that are filed with the SEC.

These forward-looking statements are made only as of the date hereof, and we undertake no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.

Condensed Consolidated Statement of Operations
For the Three and Six-Month periods Ended June 30, 2021 and 2020

 Three Months Ended June 30,Six Months Ended June 30,
 (Dollars in thousands, except per share data)
Electricity133,864 128,685 278,852 271,541 
Product7,410 43,701 16,053 91,112 
Energy storage5,627 2,514 18,348 4,360 
Total revenues146,901 174,900 313,253 367,013 
Cost of revenues:    
Electricity83,736 71,950 163,587 143,318 
Product5,924 34,709 13,998 71,687 
Energy storage5,266 2,855 10,046 4,804 
Total cost of revenues94,926 109,514 187,631 219,809 
Gross profit51,975 65,386 125,622 147,204 
Operating expenses:    
Research and development expenses1,128 1,172 2,004 2,791 
Selling and marketing expenses3,988 4,854 8,264 9,648 
General and administrative expenses18,240 11,870 36,846 28,615 
Business interruption insurance income (585) (2,982)
Operating income28,619 48,075 78,508 109,132 
Other income (expense):    
Interest income808 441 1,071 843 
Interest expense, net(18,626)(19,785)(37,642)(37,058)
Derivatives and foreign currency transaction gains (losses)658 671 (16,208)1,064 
Income attributable to sale of tax benefits7,420 5,672 13,775 9,804 
Other non-operating income (expense), net(21)304 (352)382 
Income from operations before income tax and equity in
earnings (losses) of investees
18,858 35,378 39,152 84,167 
Income tax (provision) benefit(4,268)(11,766)(7,275)(29,914)
Equity in earnings (losses) of investees, net605 1,658 1,147 923 
Net income15,195 25,270 33,024 55,176 
Net income attributable to noncontrolling interest(2,169)(2,224)(4,739)(6,097)
Net income attributable to the Company's stockholders13,026 23,046 28,285 49,079 
Earnings per share attributable to the Company's stockholders:    
Basic0.23 0.45 0.51 0.96 
Diluted0.23 0.45 0.50 0.95 
Weighted average number of shares used in computation of
earnings per share attributable to the Company's stockholders:
Basic55,992 51,043 55,990 51,040 
Diluted56,316 51,362 56,502 51,448 

Condensed Consolidated Balance Sheet
For the Periods Ended June 30, 2021 and December 31, 2020

 June 30,
 December 31,
(Dollars in thousands)
Current assets:   
Cash and cash equivalents250,009  448,252 
Marketable securities at fair value45,960   
Restricted cash and cash equivalents79,868  88,526 
Trade137,688  149,170 
Other11,881  17,987 
Inventories28,526  35,321 
Costs and estimated earnings in excess of billings on uncompleted contracts13,837  24,544 
Prepaid expenses and other20,220  15,354 
Total current assets587,989  779,154 
Investment in unconsolidated companies103,890  98,217 
Deposits and other57,347  66,989 
Deferred income taxes124,284  119,299 
Property, plant and equipment, net2,175,637  2,099,046 
Construction-in-process531,634  479,315 
Operating leases right of use19,765  16347 
Finance leases right of use7,633  11633 
Intangible assets, net185,508  194,421 
Goodwill24,863  24,566 
Total assets3,818,550  3,888,987 
Current liabilities:   
Accounts payable and accrued expenses108,408  152,763 
Billings in excess of costs and estimated earnings on uncompleted contracts13,452  11,179 
Current portion of long-term debt:   
Senior secured notes25,144  24,949 
Other loans36,265  35,897 
Full recourse56,843  17,768 
Operating lease liabilities2,978  2,922 
Finance lease liabilities3,139  3,169 
Total current liabilities246,229  248,647 
Long-term debt, net of current portion:   
Limited and non-recourse:   
Senior secured notes301,330  315,195 
Other loans267,310  284,928 
Full recourse:   
Senior unsecured bonds674,643  717,534 
Other loans54,961  59,556 
Operating lease liabilities16,531  12,897 
Finance lease liabilities5,190  9,104 
Liability associated with sale of tax benefits101,883  111,476 
Deferred income taxes88,156  87,972 
Liability for unrecognized tax benefits3,464  1,970 
Liabilities for severance pay17,691  18,749 
Asset retirement obligation65,342  63,457 
Other long-term liabilities6,094  6,235 
Total liabilities1,848,824  1,937,720 
Redeemable noncontrolling interest9,871  9,830 
The Company's stockholders' equity:   
Common stock56  56 
Additional paid-in capital1,267,448  1,262,446 
Retained earnings565,225  550,103 
Accumulated other comprehensive income (loss)(7,646) (6,620)
Total stockholders' equity attributable to Company's stockholders1,825,083  1,805,985 
Noncontrolling interest134,772  135,452 
Total equity1,959,855  1,941,437 
Total liabilities, redeemable noncontrolling interest and equity3,818,550  3,888,987 

Reconciliation of EBITDA and Adjusted EBITDA
For the Three and Six-Month Periods Ended June 30, 2021 and 2020

We calculate EBITDA as net income before interest, taxes, depreciation and amortization. We calculate Adjusted EBITDA as net income before interest, taxes, depreciation and amortization, adjusted for (i) termination fees, (ii) impairment of long-lived assets, (iii) write-off of unsuccessful exploration activities, (iv) any mark-to-market gains or losses from accounting for derivatives, (v) merger and acquisition transaction costs, (vi) stock-based compensation, (vii) gain or loss from extinguishment of liabilities, (viii) gain or loss on sale of subsidiary and property, plant and equipment and (ix) other unusual or non-recurring items. EBITDA and Adjusted EBITDA are not measurements of financial performance or liquidity under accounting principles generally accepted in the United States, or U.S. GAAP, and should not be considered as an alternative to cash flow from operating activities or as a measure of liquidity or an alternative to net earnings as indicators of our operating performance or any other measures of performance derived in accordance with U.S. GAAP. We use EBITDA and Adjusted EBITDA as a performance metric because it is a metric used by our Board of Directors and senior management in evaluating our financial performance. However, other companies in our industry may calculate EBITDA and Adjusted EBITDA differently than we do.

The following table reconciles net income to EBITDA and Adjusted EBITDA for the Three and Six-Month periods ended June 30, 2021 and 2020.

 Three Months Ended June 30,Six Months Ended June 30,
 (Dollars in thousands)(Dollars in thousands)
Net income15,195  25,270  33,024  55,176 
Adjusted for:    
Interest expense, net (including amortization of deferred financing
17,818  19,344  36,571  36,215 
Income tax provision (benefit)4,268  11,766  7,275  29,914 
Adjustment to investment in an unconsolidated company: our
proportionate share in interest expense, tax and depreciation and
amortization in Sarulla
2,899  3,199  5,364  5,876 
Depreciation and amortization42,126  36,812  82,955  72,100 
EBITDA82,306  96,391  165,189  199,281 
Mark-to-market gains or losses from accounting for derivative(990) (1,482) 1,096  (2,043)
Stock-based compensation2,623  2,264  4,720  4,253 
Reversal of a contingent liability    (418)  
Allowance for bad debts related to February power crisis in Texas    2,980   
Hedge Losses resulting from February power crisis in Texas    9,133   
Merger and acquisition transaction costs474  618  958  1,158 
Other write-off134    134   
Settlement expenses  89  1,277 
Adjusted EBITDA84,547  97,880  183,792  203,926 


Reconciliation of Adjusted Net Income attributable to the Company's stockholders and Adjusted EPS
For the Three and Six-Month Periods Ended June 30, 2021 and 2020

Adjusted Net Income attributable to the Company's stockholders and Adjusted EPS are adjusted for one-time expense items that are not representative of our ongoing business and operations. The use of Adjusted Net income attributable to the Company's stockholders and Adjusted EPS is intended to enhance the usefulness of our financial information by providing measures to assess the overall performance of our ongoing business.

The following tables reconciles Net income attributable to the Company's stockholders and Adjusted EPS for the Three and Six-month periods ended June 30, 2021 and 2020.

 Three Months Ended June 30, 2021Six Months Ended June 30, 2021
 2021 2020 2021 2020
(Dollars in millions, except per share data)
Net income attributable to the Company's stockholders$13.0 $23.0 $28.3 $49.1
One-time net expense related to February power crisis in Texas     8.8  
Adjusted Net income attributable to the Company's stockholders$13.0 $23.0 $37.1 $49.1
Weighted average number of shares diluted used in computation of
earnings per share attributable to the Company's stockholders:
56.3  51.4  56.5  51.4
Diluted Adjusted EPS ($) 0.23  0.45  0.66  0.95

Ormat Technologies Contact:
Smadar Lavi
VP Corporate Finance and Head of Investor Relations
775-356-9029 (ext. 65726)
 Investor Relations Agency Contact:
Rob Fink