Press Release

Ormat Technologies Reports Third Quarter 2022 Financial Results

Company Release - 11/2/2022
New Power Plants and Strong Energy Prices Drive Significant Top Line and Operating Income Expansion



RENO, Nev., Nov. 02, 2022 (GLOBE NEWSWIRE) -- Ormat Technologies, Inc. (NYSE: ORA), a leading geothermal, energy storage, solar PV and recovered energy power company, today announced financial results for the third quarter ended September 30, 2022.


  Q3 2022 Q3 2021 Change (%) 9-months
Change (%)
GAAP Measures            
Revenues ($ millions)            
Electricity 152.8 142.7 7.1% 466.5 421.5 10.7%
Product 14.2 10.5 35.1% 39.2 26.6 47.6%
Energy Storage 8.8 5.7 56.2% 22.9 24.0 (4.6)%
Total Revenues 175.9 158.8 10.7% 528.7 472.1 12.0%
Gross Profit ($ millions) 61.1 63.1 -3.2% 188.6 188.8 (0.1)%
Gross margin (%)            
Electricity 36.5% 42.8%   38.5% 41.8%  
Product 18.0% 12.8%   9.2% 12.8%  
Energy Storage 31.5% 12.2%   24.3% 37.5%  
Gross margin (%) 34.7% 39.8%   35.7% 40.0%  
Operating income ($ millions) 38.9 36.0 8.1% 122.6 114.5 7.1%
Net income attributable to the Company’s stockholders ($ millions) 18.1 14.9 21.5% 47.8 43.2 10.7%
Diluted EPS ($) 0.32 0.26 23.1% 0.85 0.77 10.4%
Non-GAAP Measures            
Adjusted Net income attributable to the Company’s stockholders ($ millions) 18.8 17.8 5.3% 50.8 55.7 (8.8)%
Adjusted Diluted EPS ($) 0.33 0.32 2.5% 0.90 0.99 (9.3)%
Adjusted EBITDA1 ($ millions) 102.2 101.6 0.6% 310.8 285.4 8.9%

“Ormat’s third quarter financial performance demonstrated strong growth to our consolidated top-line, driven by continued momentum in our Electricity and Energy Storage Segments along with a notable improvement in our Product Segment,” said Doron Blachar, Ormat’s Chief Executive Officer. “Our fourth consecutive quarter of top-line growth drove expansion in both our Operating income and Net income. Adjusted EBITDA was flat year-over-year driven by the absence of $15.8 million of insurance proceeds received in relation to the Puna power plant in Hawaii during the third quarter of last year. Also, gross margin of the Electricity segment was impacted by the insurance proceeds related to Puna, and excluding that, gross margin in the third quarter 2022 increased by 4.5% compared to last year. The continued growth in our Electricity segment was supported by CD4 and Tungsten 2, which commenced commercial operation in the last quarter, as well as increased operations and higher electricity rates at Puna in the third quarter. In the Product segment, newly negotiated and signed contracts have improved our margins while strengthening our backlog. Additionally, the increase in energy prices has boosted energy storage revenues.”

“We remain on track with the commercial operation of most of our geothermal projects. Despite a short-term delay for some of our energy storage assets that will not contribute revenues in 2022, we benefited from the increase in energy prices for our energy storage operating assets. We continue to see strong global tailwinds for renewables, specifically in the USA and Indonesia. The elevated global price environment for fossil fuels and increased focus on energy security supports our long-term plans to increase our combined geothermal, energy storage and solar generating portfolio to approximately 1.5 GW by 2023 and to deliver an annual Adjusted EBITDA of approximately $500 million on a run-rate basis towards the end of 2022,” Blachar added.


  • Net income attributable to the Company's stockholders and diluted EPS for the third quarter of 2022 increased 21.5% and 23.1%, respectively, versus the prior year period. This was a result of the increase in operating income driven by all operating segments.
  • Adjusted Net income attributable to the Company's stockholders and adjusted diluted EPS for the third quarter of 2022 increased 5.3% and 2.5%, respectively, compared to last year.
  • Adjusted EBITDA for the third quarter of 2022 was $102.2 million, an increase of 0.6% compared to $101.6 million in 2021, supported by an 8.1% increase in operating income driven mainly by the reduction in G&A expenses due to lower legal expenses. This increase was offset by the absence of $15.8 million in insurance proceeds received in the third quarter last year.
  • Electricity segment revenues increased 7.1% for the third quarter of 2022, compared to 2021, driven by the Tungsten and CD4 plants each reaching their respective CODs and the Puna plant garnering higher capacity along with improved energy rates. The segment revenue was partially offset by the shutdown of the Heber 1 power plant due to fire.
  • Electricity segment gross margin decreased to 36.5%. This decrease was driven by one-off business interruption insurance proceeds of $15.5 million in relation to the Puna power plant in Hawaii, recorded in the third quarter last year, causing a higher-than-normal gross margin of 42.8% in the third quarter of 2021. Excluding these business interruption proceeds, gross margin was 32.0%, an increase of 4.5% compared to last year.
  • We recorded in the third quarter of 2022 $4.0 million of insurance proceeds related to Heber 1 and a total of $7.4 million in the nine months of 2022 as a reduction of the electricity cost of revenues.
  • Product segment revenues increased 35.1% to $14.2 million due to new contracts signed in 2022.
  • Product segment backlog grew this quarter by approximately 150% compared to the second quarter of 2022 driven by the $100 million in contracts signed in the third quarter. Backlog stands at $137.1 million as of November 3, 2022.
  • Energy storage segment revenues increased 56.2% to $8.8 million, primarily driven by the increase in merchant prices in our main markets.


  • Signed a 15-year power purchase agreement (tolling agreement) with California utility for the 80MW/320MWh Bottleneck Battery Energy Storage System located in California, subject to CPUC approval. The Bottleneck project is the largest energy storage project currently under construction and we expect to complete its construction by year end 2023 and start selling services under the Energy Storage PPA in early 2024.
  • Commenced commercial operation of the 30MW CD4 geothermal project.
  • Secured $100 million of Supply and EPC Contracts in New Zealand and Indonesia.


  • Total revenues of between $720 million and $735 million.
  • Electricity segment revenues between $630 million and $638 million.
  • Product segment revenues of between $60 million and $67 million.
  • Energy Storage revenues of $30 million.
  • Adjusted EBITDA to be between $430 million and $442 million, including $15 million for business interruption insurance proceeds, of which $10 million were recorded in the nine months ended September30, 2022.

    • Adjusted EBITDA attributable to minority interest of approximately $35 million.

The Company provides a reconciliation of Adjusted EBITDA, a non-GAAP financial measure for the three months ended September 30, 2022. However, the Company does not provide guidance on net income and is unable to provide a reconciliation for its Adjusted EBITDA guidance range to net income without unreasonable efforts due to high variability and complexity with respect to estimating certain forward-looking amounts. These include 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 November 2, 2022, 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 November 30, 2022, to stockholders of record as of the close of business on November 16, 2022.


Ormat will host a conference call to discuss its financial results and other matters discussed in this press release on Thursday, November 3 at 9:00 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. A replay of the webcast will be available approximately 120 minutes after the conclusion of the live call and will be archived for 12 months.

Investors may access the call by dialing:

  Canadian participant dial in (toll free): 1-833-950-0062
  United States participant international dial-in: 1-844-200-6205
  All other locations: +1-929-526-1599
  Access code: 299253
Conference replay  
  US Toll Free: 1-866-813-9403
  Canada: 1-226-828-7578
  International Toll: +44-204-525-0658
  Replay Access Code: 042163


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 total generating portfolio is 1,173 MW with a 1,085 MW geothermal and solar generation portfolio that is spread globally in the U.S., Kenya, Guatemala, Indonesia, Honduras, and Guadeloupe, and an 88 MW energy storage portfolio that 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. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that we expect or anticipate will or may occur in the future, including such matters as our projections of annual revenues, expenses and debt service coverage with respect to our debt securities, future capital expenditures, business strategy, competitive strengths, goals, development or operation of generation assets, market and industry developments and the growth of our business and operations, are forward-looking statements. When used in this press release, the words “may”, “will”, “could”, “should”, “expects”, “plans”, “anticipates”, “believes”, “estimates”, “predicts”, “projects”, “potential”, or “contemplate” or the negative of these terms or other comparable terminology are intended to identify forward-looking statements, although not all forward-looking statements contain such words or expressions. 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. Although we believe that our plans and objectives reflected in or suggested by these forward-looking statements are reasonable, we may not achieve these plans or objectives. Actual future results may differ materially from those projected as a result of certain risks and uncertainties and other risks described under "Risk Factors" as described in Ormat’s annual report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on February 25, 2022, and in Ormat’s subsequent quarterly reports on Form 10-Q and annual reports on Form 10-K that are filed from time to time with the SEC.

These forward-looking statements are made only as of the date hereof, and, except as legally required, 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 and Nine-Month Periods Ended September 30, 2022, and 2021

  Three Months Ended
September 30,
Nine Months Ended
September 30,
  2022   2021   2022   2021  
  (Dollars in thousands, except per share data)
Electricity 152,820   142,651   466,540   421,503  
Product 14,217   10,527   39,237   26,580  
Energy storage 8,848   5,664   22,896   24,012  
Total revenues 175,885   158,842   528,673   472,095  
Cost of revenues:        
Electricity 97,053   81,549   287,091   245,136  
Product 11,664   9,182   35,644   23,180  
Energy storage 6,060   4,971   17,324   15,017  
Total cost of revenues 114,777   95,702   340,059   283,333  
Gross profit 61,108   63,140   188,614   188,762  
Operating expenses:        
Research and development expenses 1,238   1,175   3,690   3,179  
Selling and marketing expenses 4,093   2,671   12,410   10,935  
General and administrative expenses 16,057   23,554   47,155   60,400  
Business interruption insurance income   (248 )   (248 )
Impairment charge     1,954    
Write-off of unsuccessful exploration activities 827     827    
Operating income 38,893   35,988   122,578   114,496  
Other income (expense):        
Interest income 1,659   519   2,180   1,590  
Interest expense, net (22,403 ) (22,230 ) (63,902 ) (59,872 )
Derivatives and foreign currency transaction gains (losses) (293 ) (21 ) (4,031 ) (16,229 )
Income attributable to sale of tax benefits 9,113   7,879   26,345   21,654  
Other non-operating income (expense), net 673   44   (512 ) (308 )
Income from operations before income tax and equity in earnings (losses) of investees 27,642   22,179   82,658   61,331  
Income tax (provision) benefit (7,227 ) (2,048 ) (23,520 ) (9,323 )
Equity in earnings (losses) of investees, net (589 ) 649   (1,574 ) 1,796  
Net income 19,826   20,780   57,564   53,804  
Net income attributable to noncontrolling interest (1,716 ) (5,878 ) (9,764 ) (10,617 )
Net income attributable to the Company's stockholders 18,110   14,902   47,800   43,187  
Earnings per share attributable to the Company's stockholders:        
Basic: 0.32   0.27   0.85   0.77  
Diluted: 0.32   0.26   0.85   0.77  
Weighted average number of shares used in computation of earnings per share attributable to the Company's stockholders:        
Basic 55,999   56,003   56,058   55,995  
Diluted 56,457   56,298   56,479   56,413  

Condensed Consolidated Balance Sheet
For the Periods Ended September 30, 2022, and December 31, 2021

  September 30, 2022   December 31, 2021
Current assets:      
Cash and cash equivalents 154,633     239,278  
Marketable securities at fair value     43,343  
Restricted cash and cash equivalents 98,402     104,166  
Trade 117,277     122,944  
Other 20,646     18,144  
Inventories 29,805     28,445  
Costs and estimated earnings in excess of billings on uncompleted contracts 17,354     9,692  
Prepaid expenses and other 36,858     35,920  
Total current assets 474,975     601,932  
Investment in unconsolidated companies 117,182     105,886  
Deposits and other 38,250     78,915  
Deferred income taxes 134,585     143,450  
Property, plant and equipment, net 2,509,932     2,294,973  
Construction-in-process 795,891     721,483  
Operating leases right of use 20,958     19,357  
Finance leases right of use 3,974     6,414  
Intangible assets, net 339,042     363,314  
Goodwill 89,742     89,954  
Total assets 4,524,531     4,425,678  
Current liabilities:      
Accounts payable and accrued expenses 159,637     143,186  
Billings in excess of costs and estimated earnings on uncompleted contracts 14,034     9,248  
Current portion of long-term debt:      
Limited and non-recourse (primarily related to VIEs): 76,668     61,695  
Full recourse 101,268     313,846  
Financing Liability 16,270     10,835  
Operating lease liabilities 2,291     2,564  
Finance lease liabilities 1,860     2,782  
Total current liabilities 372,028     544,156  
Long-term debt, net of current portion:      
Limited and non-recourse: 478,941     539,664  
Full recourse: 693,159     740,335  
Convertible senior notes 420,250      
Financing liability 225,759     242,029  
Operating lease liabilities 18,302     16,462  
Finance lease liabilities 2,202     4,361  
Liability associated with sale of tax benefits 117,113     134,953  
Deferred income taxes 77,787     84,662  
Liability for unrecognized tax benefits 6,572     5,730  
Liabilities for severance pay 13,601     15,694  
Asset retirement obligation 92,426     84,891  
Other long-term liabilities 5,682     4,951  
Total liabilities 2,523,822     2,417,888  
Commitments and contingencies      
Redeemable noncontrolling interest 8,433     9,329  
The Company's stockholders' equity:      
Common stock 56     56  
Additional paid-in capital 1,256,058     1,271,925  
Treasury stock, at cost (17,964 )   0  
Retained earnings 612,832     585,209  
Accumulated other comprehensive income (loss) (4,477 )   (2,191 )
Total stockholders' equity attributable to Company's stockholders 1,846,505     1,854,999  
Noncontrolling interest 145,771     143,462  
Total equity 1,992,276     1,998,461  
Total liabilities, redeemable noncontrolling interest and equity 4,524,531     4,425,678  

Reconciliation of EBITDA and Adjusted EBITDA
For the Three- and Nine-Month Periods Ended September 30, 2022, and 2021

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- and nine-month periods ended September 30, 2022, and 2021.

  Three Months Ended
September 30,
  Nine Months Ended
September 30,
    2022       2021     2022     2021  
  (Dollars in thousands)   (Dollars in thousands)
Net income $ 19,826     $ 20,780   $ 57,564   $ 53,804  
Adjusted for:              
Interest expense, net (including amortization of deferred financing costs)   20,744       21,711     61,722     58,282  
Income tax provision (benefit)   7,227       2,048     23,520     9,323  
Adjustment to investment in an unconsolidated company: our proportionate share in interest expense, tax and depreciation and amortization in Sarulla   3,150       2,889     9,441     8,253  
Depreciation and amortization   48,863       47,548     142,966     130,503  
EBITDA $ 99,810     $ 94,976   $ 295,213   $ 260,165  
Mark-to-market (gains) or losses from accounting for derivative   (1,234 )         2,677     1,096  
Stock-based compensation   2,816       2,120     8,629     6,840  
Make-whole premium related to long-term debt prepayment             1,102      
Reversal of a contingent liability                 (418 )
Allowance for bad debts             115     2,980  
Hedge losses resulting from February power crisis in Texas                 9,133  
Write-off related to Storage projects and activity             1,953      
Merger and acquisition transaction costs         4,539     249     5,497  
Other write-off                 134  
Write-off of unsuccessful exploration activities   827           827      
Adjusted EBITDA $
    $ 101,635   $ 310,765   $ 285,427  

Reconciliation of Adjusted Net Income attributable to the Company's stockholders and Diluted Adjusted EPS for the three- and nine-month periods ended September 30, 2022, and 2021

Adjusted Net Income attributable to the Company’s stockholders and Diluted 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 Diluted Adjusted EPS is intended to enhance the usefulness of our financial information by providing measures to assess the overall performance of our ongoing business.

  Three Months Ended
September 30,
  Nine Months Ended
September 30,
  2022   2021   2022   2021  
GAAP Net income attributable to the Company's stockholders 18.1   14.9   47.8   43.2  
One-time net expense related to February power crisis in Texas, net of taxes       8.8  
Write-off of Energy Storage projects and assets     1.5    
Exploration w/o 0.7       0.7      
M&A costs   2.9     3.7  
Make-whole premium related to repayment of long-term debt     0.8    
Adjusted Net income attributable to the Company's stockholders 18.8   17.8   50.8   55.7  
GAAP diluted EPS 0.32   0.26   0.85   0.77  
One-time net expense related to February power crisis in Texas, net of taxes       0.16  
Write-off of Energy Storage projects and assets     0.03    
Exploration w/o 0.01       0.01      
M&A costs   0.06     0.07  
Make-whole premium related to repayment of long-term debt     0.01    
Diluted Adjusted EPS ($)
0.33   0.32   0.90   0.99  


Ormat Technologies Contact:
Smadar Lavi
VP Head of IR and ESG Planning & Reporting
775-356-9029 (ext. 65726)
  Investor Relations Agency Contact:
Sam Cohen or Joseph Caminiti
Alpha IR Group

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Source: Ormat Technologies, Inc.