Q2 2024 Ormat Technologies Inc Earnings Call Transcript
Key Points
- Ormat Technologies Inc (ORA) reported a 9.3% increase in total revenues and a 25% increase in adjusted EBITDA compared to the second quarter of last year.
- The electricity segment saw consistent growth, driven by the addition of Enel assets and improvements at the Kona and Heber 1 facilities.
- The energy storage segment exhibited strong revenue growth, with contributions from 83 megawatts of new projects that came online in the last 12 months.
- Ormat Technologies Inc (ORA) achieved a significant milestone at the Olkaria power plant in Kenya, successfully conducting capacity tests that reached approximately 148 megawatts.
- The company has a strong product segment backlog of $165 million, up 38% compared to the second quarter of 2023.
- Net income attributable to the company's stockholders decreased to $22.2 million, or $0.37 per diluted share, compared to $24.2 million, or $0.40 per diluted share, in the second quarter of the prior year.
- The Dixie Valley facility experienced an unplanned outage, negatively impacting revenues and EBITDA by approximately $4.5 million.
- The company faced curtailment issues at the Olkaria power plant in Kenya, resulting in a revenue loss of $7 million to $8 million year-to-date.
- Gross margin for the energy storage segment was relatively low at 5.7%, despite an improvement from 1.9% in the prior year.
- The average cost of debt for Ormat Technologies Inc (ORA) stands at 4.63%, which could be a concern in the current elevated and volatile global interest rate environment.
Good morning, and welcome to the Ormat Technologies second-quarter 2024 earnings conference call. (Operator Instructions) Please note that this event is being recorded.
I would now like to turn the conference over to Josh Carroll with Alpha IR. Please go ahead.
Thank you, operator. Hosting the call today are Doron Blachar, Chief Executive Officer; Assi Ginzburg, Chief Financial Officer; and Smadar Lavi, Vice President of Investor Relations and ESG Planning Reporting.
Before beginning, we would like to remind you that the information provided during this call may contain forward-looking statements relating to the current expectations, estimates, forecast, and projections of future events that are forward looking as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally relate to the company's plans, objectives, and expectations for future operations and are based on management's current estimates and projections, future results, or trends. Actual future
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