Press Release

Ormat Technologies Reports First Quarter 2021 Financial Results

Company Release - 5/5/2021


RENO, Nev., May 05, 2021 (GLOBE NEWSWIRE) -- Ormat Technologies, Inc. (NYSE: ORA) today announced financial results for the first quarter ended March 31, 2021.


  Q1 2021     Q1 2020     Change (%)  
GAAP Measures                
Revenues ($ millions)                
Electricity 145.0     142.9     1.5 %
Product 8.6     47.4     (81.8
Energy Storage 12.7     1.8     589.1
Total Revenues 166.4     192.1     (13.4
Gross margin (%)                
Electricity 44.9 %   50.0 %      
Product 6.6 %   22.0 %      
Energy Storage 62.4 %   (5.6 )%      
Gross margin (%) 44.3 %   42.6 %      
Operating income ($ millions) 49.9     61.1     (18.3 )%
Net income attributable to the Company’s stockholders 15.3     26.0     (41.4 )%
Diluted EPS ($) 0.27     0.51     (47.1 )%
Non-GAAP Measures              
Adjusted Net income attributable to the Company’s stockholders 24.1     26.0     (7.3 )%
Adjusted Diluted EPS ($) 0.42     0.51     (17.6 )%
Adjusted EBITDA1 ($ millions) 99.2     106.0     (6.4

(1) Reconciliation is set forth below in this release

“Our first quarter results reflect continued strength from our Electricity and our rapidly growing Energy Storage segments that were able to partially offset a $9.9 million reduction in gross profit in the Product segment that was adversely impacted by the COVID-19 pandemic and the $4.9 million of insurance income related to Puna that was received in the first quarter of last year,” commented Doron Blachar, Chief Executive Officer. “We continue to show revenue growth in both the Electricity and Energy Storage segments and are expecting to maintain growth and improve Adjusted EBITDA.”

“Ormat’s pipeline of energy storage projects continues to expand, and we have secured large quantities of batteries that will be delivered over the next four years on competitive terms in order to support our growing needs,” added Mr. Blachar. “This segment continues to contribute positive Adjusted EBITDA and we are increasingly confident that growth will accelerate.”

“This year we will lay additional groundwork to accelerate the growth of our Electricity and Energy Storage segments,” added Mr. Blachar. “Governments around the world continue to support renewable energy, and the current U.S. administration has indicated an eagerness to invest in infrastructure, particularly for clean energy. We are well-positioned to take advantage of these trends. We expect to increase our combined geothermal, energy storage and solar generating portfolio to approximately 1.5 GW by 2023, with a significant contribution coming from our energy storage business. This will enable an annual run-rate of $500 million in Adjusted EBITDA towards the end of 2022.”


  • Net income attributable to the Company's stockholders was $15.3 million, or $0.27 per diluted share, compared to $26.0 million, or $0.51 per diluted share in the first quarter of last year, representing a decrease of 41.4% and 47.1%, respectively, mainly as a result of the February power crisis in Texas, which led to emergency regulations impacting our Rabbit Hill energy storage project, as well as the slowdown in Ormat’s Products segment;
  • Adjusted net income attributable to the Company's stockholders was $24.1 million, or $0.42 per diluted share compared to $26.0 million or $0.51 per diluted share in 2020. Net income attributable to the Company's stockholders in the first quarter of 2021 was adjusted to exclude a one-time net expense of $12.1 million pre-tax and $8.8 million after tax related to the February power crisis in Texas, which caused a significant increase in demand for electricity on the one hand and a decrease in the electricity supply in the region on the other hand, leading to a significant increase in the Responsive Reserve Service market price. The following is a breakdown of the pre-tax net expense as recorded in our P&L:
    • Revenue of $5.4 million under Energy Storage segment
    • Expense of $3.0 million under General and Administrative Expenses
    • Loss of $14.5 million under Derivatives and Foreign Currency Transaction Gains (Losses);
  • Adjusted EBITDA decreased 6.4% to $99.2 million, from $106.0 million in the first quarter of last year mainly due to a $9.9 million reduction in Product segment gross profit this quarter and BI insurance income of $4.9 million recorded in the first quarter of last year (a reconciliation of GAAP net income to EBITDA and Adjusted EBITDA is set forth below in this release);
  • Electricity segment revenues increased slightly compared to the first quarter of last year, supported by a contribution from newly added capacity at the Steamboat Complex and from Puna’s resumed operation, partially offset by curtailments in the Olkaria complex in Kenya due to COVID-19 and lower resource performance in the complex that caused a reduction in generation. We are evaluating a recovery plan to restore the complex’s generating capacity;
  • Product segment revenues decreased 81.8% to $8.6 million, down from $47.4 million in the same quarter last year, impacted mainly by COVID-19;
  • Product segment backlog stands at $37.2 million as of May 5, 2021;
  • Energy Storage segment revenues were a record $12.7 million compared to $1.8 million in the same quarter last year. The increase was mainly related to higher revenues at our Rabbit Hill project driven by the February power crisis in Texas, and revenues from our Pomona asset in California which was acquired in July 2020;
  • We announced the commercial operation of the 10 MW/40 MWh Vallecito Battery Energy Storage System (Vallecito BESS). The Vallecito BESS provides local resource adequacy to Southern California Edison (SCE) under a 20-year energy storage resource adequacy agreement. In addition, the facility will provide ancillary services and energy optimization through participation in merchant markets run by the California Independent System Operator (CAISO);
  • The Puna power plant is currently generating approximately 20 MW. We plan to connect two injection wells during the second quarter and are targeting close to full capacity in mid-2021. While the enactment of the new PPA, signed with HELCO at the end of 2019, was recently delayed by the PUC, we will continue selling electricity under our existing long-term PPA;
  • McGinness Hills expansion is completed and we are in late stage of start-up; and
  • We released two energy storage systems for construction, the 20 MW/MWh Andover and the 7 MW/MWh Howell, that are located in New Jersey and will sell ancillary services to PJM. We are targeting commercial operation in the first half of 2022.


  • Total revenues of between $645 million and $680 million;
  • Electricity segment revenues between $570 million and $580 million;
    • The electricity segment includes $33 million from the Puna power plant in Hawaii, assuming we will meet our target of bringing the plant close to full operation in mid-2021;
  • Product segment revenues of between $50 million and $70 million;
  • Energy Storage revenues of between $25 million and $30 million;
  • Adjusted EBITDA to be between $400 million and $410 million;
    • Adjusted EBITDA attributable to minority interest of approximately $32 million.

The Company provides a reconciliation of Adjusted EBITDA, a Non-GAAP financial measure for the three months ended March 31, 2021. However, the Company is unable to provide a reconciliation for its Adjusted EBITDA guidance range due to high variability and complexity with respect to estimating forward looking amounts for impairments and disposition and acquisition of business interests, income tax expense, and other non-cash expenses and adjusting items that are excluded from the calculation of Adjusted EBITDA.


On May 5, 2021, the Company’s Board of Directors declared, approved, and authorized payment of a quarterly dividend of $0.12 per share pursuant to the Company’s dividend policy. The dividend will be paid on June 1, 2021 to stockholders of record as of the close of business on May 18, 2021. In addition, the Company expects to pay a quarterly dividend of $0.12 per share in each of the next three quarters.


Ormat will host a conference call to discuss its financial results and other matters discussed in this press release on Thursday, May 6th, at 9 a.m. ET. The call will be available as a live, listen-only webcast at During the webcast, management will refer to slides that will be posted on the website. The slides and accompanying webcast can be accessed through the News & Events in the Investor Relations section of Ormat’s website.

An archive of the webcast will be available approximately 60 minutes after the conclusion of the live call.
Investors may access the call by dialing:

Participant dial in (toll free): 1-877-511-6790
Participant international dial-in: 1-412-902-4141
Conference replay  
US Toll Free: 1-877-344-7529
International Toll: 1-412-317-0088
Replay Access Code: 10154447


With over five decades of experience, Ormat Technologies, Inc. is a leading geothermal company and the only vertically integrated company engaged in geothermal and recovered energy generation (“REG”), with robust plans to accelerate long-term growth in the energy storage market and to establish a leading position in the U.S. energy storage market. The Company owns, operates, designs, manufactures and sells geothermal and REG power plants primarily based on the Ormat Energy Converter – a power generation unit that converts low-, medium- and high-temperature heat into electricity. The Company has engineered, manufactured and constructed power plants, which it currently owns or has installed for utilities and developers worldwide, totaling approximately 3,200 MW of gross capacity. Ormat leveraged its core capabilities in the geothermal and REG industries and its global presence to expand the Company’s activity into energy storage services, solar Photovoltaic (PV) and energy storage plus Solar PV. Ormat’s current 932 MW of geothermal and Solar generating portfolio is spread globally in the U.S., Kenya, Guatemala, Indonesia, Honduras, and Guadeloupe and its 83 MW energy storage portfolio is located in the U.S.


Information provided in this press release may contain statements relating to current expectations, estimates, forecasts and projections about future events that are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally relate to Ormat's plans, objectives and expectations for future operations and are based upon its management's current estimates and projections of future results or trends. Actual future results may differ materially from those projected as a result of certain risks and uncertainties.

For a discussion of such risks and uncertainties, see "Risk Factors" as described in Ormat’s Form 10-K filed with the Securities and Exchange Commission (“SEC”) on February 26, 2021 and from time to time, in Ormat’s quarterly reports on Form 10-Q that are filed with the SEC.

These forward-looking statements are made only as of the date hereof, and we undertake no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.

Condensed Consolidated Statement of Operations
For the Three-Month periods Ended March 31, 2021 and 2020
    Three Months Ended March 31,
    2021     2020  
    (Dollars in thousands, except per share data)
Electricity   144,988     142,856  
Product   8,643     47,411  
Energy storage   12,721     1,846  
Total revenues   166,352     192,113  
Cost of revenues:      
Electricity   79,851     71,368  
Product   8,074     36,978  
Energy storage   4,780     1,949  
Total cost of revenues   92,705     110,295  
Gross profit   73,647     81,818  
Operating expenses:      
Research and development expenses   876     1,619  
Selling and marketing expenses   4,276     4,794  
General and administrative expenses   18,606     16,745  
Business interruption insurance income       (2,397 )
Operating income   49,889     61,057  
Other income (expense):      
Interest income   263     402  
Interest expense, net   (19,016 )   (17,273 )
Derivatives and foreign currency transaction gains (losses)   (16,866 )   393  
Income attributable to sale of tax benefits   6,355     4,132  
Other non-operating income (expense), net   (331 )   78  
Income from operations before income tax and equity in earnings (losses) of investees   20,294     48,789  
Income tax provision   (3,007 )   (18,148 )
Equity in earnings (losses) of investees, net   542     (735 )
Net income   17,829     29,906  
Net income attributable to noncontrolling interest   (2,570 )   (3,873 )
Net income attributable to the Company's stockholders   15,259     26,033  
Earnings per share attributable to the Company's stockholders:      
Basic:   0.27     0.51  
Diluted:   0.27     0.51  
Weighted average number of shares used in computation of earnings per share attributable to the Company's stockholders:            
    Basic   55,988     51,036  
    Diluted   56,735     51,526  


Condensed Consolidated Balance Sheet
For the Periods Ended March 31, 2021 and December 31, 2020
  March 31, 2021   December 31, 2020
Current assets:      
Cash and cash equivalents 376,630     448,252  
Marketable securities at fair value 27,735      
Restricted cash and cash equivalents 88,449     88,526  
Trade 139,711     149,170  
Other 10,513     17,987  
Inventories 38,408     35,321  
Costs and estimated earnings in excess of billings on uncompleted contracts 20,876     24,544  
Prepaid expenses and other 22,613     15,354  
    Total current assets 724,935     779,154  
Investment in unconsolidated companies 104,519     98,217  
Deposits and other 52,956     66,989  
Deferred income taxes 119,217     119,299  
Property, plant and equipment, net 2,148,589     2,099,046  
Construction-in-process 471,548     479,315  
Operating leases right of use 15,627     16,347  
Finance leases right of use 8,336     11,633  
Intangible assets, net 189,249     194,421  
Goodwill 24,237     24,566  
    Total assets 3,859,213     3,888,987  
Current liabilities:          
Accounts payable and accrued expenses 148,071     152,763  
Billings in excess of costs and estimated earnings on uncompleted contracts 12,686     11,179  
Current portion of long-term debt:          
   Senior secured notes 24,963     24,949  
   Other loans 36,240     35,897  
Full recourse 26,168     17,768  
Operating lease liabilities 2,935     2,922  
Finance lease liabilities 3,171     3,169  
    Total current liabilities 254,234     248,647  
Long-term debt, net of current portion:      
Limited and non-recourse:          
  Senior secured notes 306,891     315,195  
  Other loans 276,186     284,928  
Full recourse:          
  Senior unsecured bonds 698,271     717,534  
  Other loans 59,601     59,556  
Operating lease liabilities 12,332     12,897  
Finance lease liabilities 5,851     9,104  
Liability associated with sale of tax benefits 107,105     111,476  
Deferred income taxes 87,421     87,972  
Liability for unrecognized tax benefits 3,094     1,970  
Liabilities for severance pay 18,202     18,749  
Asset retirement obligation 64,354     63,457  
Other long-term liabilities 6,086     6,235  
    Total liabilities 1,899,628     1,937,720  
Redeemable noncontrolling interest 9,706     9,830  
The Company's stockholders' equity:          
    Common stock 56     56  
    Additional paid-in capital 1,264,828     1,262,446  
    Retained earnings 558,644     550,103  
    Accumulated other comprehensive income (loss) (6,920 )   (6,620 )
    Total stockholders' equity attributable to Company's stockholders 1,816,608     1,805,985  
Noncontrolling interest 133,271     135,452  
    Total equity 1,949,879     1,941,437  
    Total liabilities, redeemable noncontrolling interest and equity 3,859,213     3,888,987  

Reconciliation of EBITDA and Adjusted EBITDA
For the Three-Month Periods Ended March 31, 2021 and 2020

We calculate EBITDA as net income before interest, taxes, depreciation and amortization. We calculate Adjusted EBITDA as net income before interest, taxes, depreciation and amortization, adjusted for (i) termination fees, (ii) impairment of long-lived assets, (iii) write-off of unsuccessful exploration activities, (iv) any mark-to-market gains or losses from accounting for derivatives, (v) merger and acquisition transaction costs, (vi) stock-based compensation, (vii) gain or loss from extinguishment of liabilities, (viii) gain or loss on sale of subsidiary and property, plant and equipment and (ix) other unusual or non-recurring items. EBITDA and Adjusted EBITDA are not measurements of financial performance or liquidity under accounting principles generally accepted in the United States, or U.S. GAAP, and should not be considered as an alternative to cash flow from operating activities or as a measure of liquidity or an alternative to net earnings as indicators of our operating performance or any other measures of performance derived in accordance with U.S. GAAP. We use EBITDA and Adjusted EBITDA as a performance metric because it is a metric used by our Board of Directors and senior management in evaluating our financial performance. However, other companies in our industry may calculate EBITDA and Adjusted EBITDA differently than we do.

The following table reconciles net income to EBITDA and Adjusted EBITDA for the three-Month periods ended March 31, 2021 and 2020.

    Three Months Ended March 31
    2021 2020
    (Dollars in thousands)
Net income   17,829     29,906  
Adjusted for:      
Interest expense, net (including amortization of deferred financing costs)   18,753     16,871  
Income tax provision (benefit)   3,007     18,148  
Adjustment to investment in an unconsolidated company: our proportionate share in interest expense, tax and
depreciation and amortization in Sarulla
  2,465     2,677  
Depreciation and amortization   40,829     35,288  
EBITDA   82,883     102,890  
Mark-to-market gains or losses from accounting for derivative   2,086     (561 )
Stock-based compensation   2,097     1,989  
Merger and acquisition transaction costs   484     540  
Reversal of a contingent liability   (418 )    
Allowance for bad debts related to February power crisis in Texas   2,980      
Hedge losses resulting from February power crisis in Texas   9,133      
Settlement expenses       1,188  
Adjusted EBITDA   99,245     106,046  

Reconciliation of Adjusted Net Income attributable to the Company's stockholders and Adjusted EPS
For the Three-Month Periods Ended March 31, 2021 and 2020

Adjusted Net Income attributable to the Company's stockholders and Adjusted EPS are adjusted for one-time expense items that are not representative of our ongoing business and operations. The use of Adjusted Net income attributable to the Company's stockholders and Adjusted EPS is intended to enhance the usefulness of our financial information by providing measures to assess the overall performance of our ongoing business.

The following tables reconciles Net income attributable to the Company's stockholders and Adjusted EPS for the three-month periods ended March 31, 2021 and 2020.

    Three Months Ended March 31
(Dollars in millions except, per share data)   2021   2020
Net income attributable to the Company's stockholders   $ 15.3   $ 26.0
One-time net expense related to February power crisis in Texas   $ 8.8   $
Adjusted Net income attributable to the Company's stockholders   $ 24.1   $ 26.0
Weighted average number of shares diluted used in computation of earnings per share attributable to the
Company's stockholders
    56.7     51.5
Diluted Adjusted EPS     0.42     0.51


Ormat Technologies Contact:
Smadar Lavi
VP Corporate Finance and Head of Investor Relations
775-356-9029 (ext. 65726)
  Investor Relations Agency Contact:
Rob Fink

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Source: Ormat Technologies, Inc.