Ormat Technologies sees 5% growth in 2013

CEO Yehudit Bronicki: Demand for new geothermal power plants and other power generating units continues to drive significant growth.

Ormat Industries Ltd. (TASE: ORMT) subsidiary Ormat Technologies Inc. (NYSE: ORA) predicts higher revenue in 2013, after reporting higher revenue for 2012, despite a weak fourth quarter.

Full-year revenue rose 17.7% to $514.4 million from $437 million in 2011. Product revenue rose 65% to $186.9 million in 2012 from $113.2 million in 2011, and electricity revenue rose 1% to $327.5 million up from $323.8 million

However, the company swung to an operating loss of $155.1 million in 2012, compared with an operating profit of $64 million, due to $236.4 million in write-offs for the North Brawley and OREG 4 geothermal plants in the US. Net loss almost quintupled to $206.7 million ($4.56 per share) from $42.7 million.

Fourth quarter revenue fell 6.2% to $116.1 million from $123.7 million for the corresponding quarter of 2011, and the company posted a net loss of $222.9 million ($4.91 per share) compared with a net profit of NIS $43 million.

Ormat Technologies predicts $335-345 million electricity revenue and $180-190 million product revenue in 2013. The total guidance of $515-535 million reflects up to 5% full-year growth, and is below the analysts' consensus of $537.8 million revenue.

Cash flow from operations fell to $93.2 million in 2012 from $132.7 million in 2011, and the company had $69.6 million in cash and cash equivalents. It also had $445.8 million in bank credit lines of which $184.9 million is unused.

Ormat Technologies CEO Yehudit Bronicki said, "The demand for new geothermal power plants and other power generating units continues to drive significant growth in our product segment. 2013 as well, started with a strong order flow."

Published by Globes [online], Israel business news - www.globes-online.com - on February 27, 2013

© Copyright of Globes Publisher Itonut (1983) Ltd. 2013

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