Ormat Industries Ltd. (TASE: ORMT) subsidiary Ormat Technologies Inc. (NYSE: ORA) reported a GAAP-based net loss on lower revenue for the first quarter of 2013, but says that its organic growth plan for 2013 is on schedule.
Revenue fell 8% to $121.7 million for the first quarter from $132.4 million for the corresponding quarter of 2012. The company attributed the drop to losses on derivatives and the natural gas-linked pricing method in its California power contracts.
Ormat Technologies posted a GAAP-based net loss of $1.9 million ($0.04 per share) for the first quarter, compared with a net profit of $8 million for the corresponding quarter, and it posted a non-GAAP net profit of $11.6 million ($0.26 per share). The GAAP-based net loss was due to a $9 million termination fee for two power contracts in the US and losses on derivatives.
Product revenue edged up to $50.6 million for the first quarter from $50.1 million for the corresponding quarter, but electricity revenue fell 13.6% to $71.1 million from $82.2 million.
Cash flow from operations fell to $18.2 million for the second quarter from $41.9 million for the corresponding quarter, and the company had $60.6 million in cash and cash equivalents at the end of March.
Ormat CEO Yehudit Bronicki said, "Since the beginning of the year, we have achieved significant milestones that will further improve both segments performance. Our 2013 organic growth plan to reach 637 megawatt is on schedule. The 36 MW Plant 2 in the Olkaria III complex in Kenya reached commercial operation bringing the total capacity of our portfolio to 611 megawatt, and we are progressing with the construction of Heber Solar and Wild Rose projects that we expect to complete by the end of 2013. In 2014, we plan to bring on line plant 3 at the Olkaria III complex increasing its capacity to approximately 100 megawatt."
Published by Globes [online], Israel business news - www.globes-online.com - on May 8, 2013
© Copyright of Globes Publisher Itonut (1983) Ltd. 2013