Ormat Industries Ltd. (TASE: ORMT) US subsidiary Ormat Technologies Inc. (NYSE: ORA) today published its financial report for the fourth quarter and full year of 2009. It also restated results for 2008 and the first nine months of 2009, following a review by the US Securities and Exchange Commission (SEC).
Through the third quarter of 2009, the geothermal company accounted for exploration and development costs using an accounting method that is similar to the full cost method used in the oil and gas industry. Ormat Technologies said, "Following a periodic review performed by the SEC staff, we concluded that this accounting treatment was inappropriate in certain respects."
The result is that Ormat Technologies' net profit for the fourth quarter and full year of 2008 was reduced by $6.2 million, which cut the 2008 full-year net profit by 12.6% from $49.5 million, and cut the fourth quarter net profit by 53.6% from $11.6 million.
Ormat Technologies posted $95.3 million revenue for the fourth quarter, unchanged from the corresponding quarter of 2008. Net profit tripled to $16.1 million ($0.35 per share) from the restated $5.4 million net profit for the corresponding quarter.
Its product segment backlog reached $90 million at the end of 2009.
For the year as a whole, Ormat Technologies' revenue rose 20.4% to $415.2 million from $344.8 million in 2008. Net profit rose to $68.6 million ($1.51 per share) in 2009 from the restated $43.3 million net profit in 2008.
Electricity segment revenue rose slightly to $255.9 million in 2009 from $252.3 million in 2008, while products segment revenue rose to $159.4 million from $92.6 million.
In the guidance for 2010 Ormat Technologies CEO Yehudit Bronicki said the company expects $275-285 million electricity segment revenue, plus $9 million of electricity revenue from the company's stake in a subsidiary. She also expects $75-85 million revenue from the products segment.
Ormat has two primary revenue sources: sales of equipment (the products segment) for geothermal power plants, and sales of electricity from its geothermal power plants.
Ormat Technologies' share closed at $33.18 on the NYSE yesterday, giving a market cap of $1.51 million. Ormat Industries' share price rose 0.7% on the TASE today to NIS 31.87, giving a market cap of NIS 3.76 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on February 24, 2010
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