Geothermal power company Ormat Technologies Inc. (NYSE: ORA) reported higher net profit on lower revenue for the third quarter, as the company's North Brawley project in California continued to affect revenue despite increased power production.
Revenue fell to $101.5 million for the third quarter from $119 million for the corresponding quarter, and in line with the analysts' consensus of $101.2 million.
Electricity segment revenue rose 22.7% to $83.4 million for the third quarter, up from $67.9 million for the corresponding quarter. Electricity output rose nearly 20% to 937,402 megawatt/hours in the third quarter from 783,532 megawatt/hours in the corresponding quarter. Product segment revenue fell to $18.1 million for the third quarter from $51.1 million for the corresponding quarter, which the company attributed to unusually high levels in 2009.
Net profit rose to $32.4 million ($0.71 per share) for the third quarter from $21.9 million for the corresponding quarter, most of which was due to a post-tax capital gain of $22.6 million from the acquisition of the controlling interest in the Mammoth geothermal complex in California.
The analysts' non-GAAP earnings per share consensus was $0.26 for the third quarter.
Ormat Technologies CEO Yehudit Bronicki said, "In the third quarter we continued to make progress in the acquisition and development of new sites. We also started construction on two additional sites that we believe will qualify for an ITC cash grant, which brings the total expected capacity already in the status of 'start of construction' to 120 megawatts."
Bronicki gave a full-year revenue guidance of $290-295 million for the electricity segment and $80 million for the product segment, for total revenue of $370-375 million. The figure does not include $6 million for the company's share of revenue for the Mammoth project. The guidance is less than the analysts' consensus of $376.1 million.
Ormat Technologies' share price closed at $28.07 in New York yesterday, giving a market cap of $1.28 million. Shares of its parent company Ormat Industries Ltd. (TASE: ORMT) rose 0.5% in morning trading on the TASE today to NIS 28.91.
Published by Globes [online], Israel business news - www.globes-online.com - on November 3, 2010
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