Ormat Industries Ltd. (TASE: ORMT) subsidiary Ormat Technologies Inc. (NYSE: ORA) swung to a loss on higher revenue in 2011, and predicts further revenue growth in 2012.
Full-year revenue rose 17% to $437 million in 2011 from $373.2 million in 2010. Product revenue rose 39% to $113.2 million from $81.4 million, and electricity revenue rose 11% to $323.8 million from $291.8 million. Average electricity rate rose to $83 per megawatt/hour in from $78 per megawatt/hour in 2010.
In its guidance for 2012, Ormat forecasts $315-330 million in electricity revenue and $150-165 million product segment revenue, for a total of $465-495 million.
Ormat Technologies posted a GAAP-based net loss of $42.7 million ($0.95 per share) in 2011, due to $61.5 million valuation allowance against US tax assets. Excluding this allowance, net profit was $18.8 million, down from $37.2 million in 2010, which included a $36.9 million capital gain from the acquisition of the controlling interest of the Mammoth geothermal complex in California.
Fourth quarter revenue rose 33% to $123.7 million from $92.8 million for the corresponding quarter of 2010. The company posted a net loss of $43 million ($0.95 per share) for the fourth quarter, compared with a net profit of $4.5 million for the corresponding quarter.
Ormat decided not to distribute a dividend for the fourth quarter of 2011, but it expects to pay dividends during 2012. The company had $118.4 million in cash and cash equivalents at the end of 2011, and $70.1 million in unused credit.
Ormat Technologies owns geothermal and recovered energy-based power plants in the US, Guatemala, Nicaragua, and Kenya. The company has more projects planned in the US, Kenya, Chile, and New Zealand. Its product backlog is $240 million.
Ormat CEO Yehudit Bronicki said, "Lease acquisition and green field development remain key to our long-term objectives. In 2011, we added 346,000 acres and our exploration land portfolio totals over 675,000 acres. Our exploration efforts continue, and we added new prospects in Chile, New Zealand and the US. We currently have 42 prospects in various stages of exploration. Going into 2012, we have the largest ever product backlog in Ormat's history."
Ormat Technologies' share price fell 0.6% yesterday to $18.24, giving a market cap of $829 million. Ormat Industries' share price fell 0.4% by early afternoon today to NIS 16.08, giving a market cap of NIS 1.9 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on February 23, 2012
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