Record revenue led geothermal energy developer and project operator Ormat Technologies (NYSE: ORA) to a profitable first quarter in 2012. The subsidiary of Ormat Industries Ltd. reported earnings in a May 9 conference call with analysts.
Revenue rose 35% to $132.4m for the first quarter from $97.8m for the first quarter of 2011. Net profit was $8m, compared with a net loss of $9m a year ago. Operating revenue grew to $25.7m, up from $22.6m. Product revenue more than doubled to $50.1 m first quarter from $19.6m a year ago. Electricity revenue rose 5% to $82.2m from $78.3m.
The vertically integrated company based in Reno, Nev., designs and manufactures equipment for the geothermal power industry as well as develops, own and operate geothermal power plants.
“In the Product Segment, 2011 was a record year in booking of new orders. We continue to be awarded new contracts in the beginning of the year. We recorded record high revenues in Q1, thanks not only to the strength of the Product Segment, but to improved results in the Electricity segment as well,” said Ormat Technologies CEO Yehudit Bronicki, according to a transcript of the earning conference call on Seeking Alpha.
Bronicki said operational changes that were implemented in the past two years through technical changes, capital investment and improvements to our supply chain will lessen the impact of the reduction in rates on the overall results of the company.
We currently expect our 2012 product revenue to be $165-175 million. We are maintaining our electricity forecast of $315-330 million. The wide range is due to the uncertainty around natural gas prices.” Bronicki said, as low gas prices have impacted power sales revenue.
Since 2002, the company has added approximately 416 MW of new capacity (net of power plants transferred or sold) reaching a current portfolio of 556 MW under ownership. Ormat has worldwide operations with U.S. operations concentrated in Nevada, California and Hawaii, with additional power purchase agreements signed. The company expects to add another 100MW by 2013.