Ormat Technologies, Inc. (ORA) Bundle
A Brief History of Ormat Technologies, Inc.
Ormat Technologies, Inc. is a leading company in the geothermal and renewable energy sector, founded in 1965 by Isaac Angel and his family. The company specializes in geothermal power generation and the manufacture of geothermal power plants and equipment.
Company Milestones
- 1965: Founded by Isaac Angel in Israel.
- 1970s: Expansion into the United States market.
- 1994: Became a publicly traded company on the NYSE under the ticker symbol "ORA."
- 2000: Achieved commercial operation of the first geothermal power plant in Nevada.
- 2014: Acquired the Sarulla geothermal project in Indonesia, one of the largest geothermal projects in the world.
- 2023: Completed the acquisition of a portfolio of geothermal and solar assets from Enel Green Power for $272 million.
Financial Performance
As of September 30, 2024, Ormat reported strong financial results:
| Metric | 2024 (Nine Months) | 2023 (Nine Months) | Change (%) |
|---|---|---|---|
| Net Revenue | $648.9 million | $588.1 million | 10.3% |
| Operating Income | $123.4 million | $115.0 million | 7.0% |
| Net Income | $82.9 million | $88.7 million | -6.6% |
| Adjusted EBITDA | $405.0 million | $342.7 million | 18.2% |
Revenue Breakdown
For the three months ended September 30, 2024, Ormat's revenue was distributed across its segments as follows:
| Segment | Revenue (Q3 2024) | Revenue (Q3 2023) | Change (%) |
|---|---|---|---|
| Electricity | $164.6 million | $157.2 million | 4.7% |
| Product | $37.4 million | $39.8 million | -6.2% |
| Energy Storage | $9.8 million | $11.0 million | -11.1% |
Capital Expenditures
In the nine months ended September 30, 2024, Ormat's capital expenditures were as follows:
| Segment | Capital Expenditures ($ millions) |
|---|---|
| Electricity | $114.9 million |
| Product | $30.2 million |
| Energy Storage | $7.8 million |
Debt and Liquidity
As of September 30, 2024, Ormat had a total outstanding debt of approximately $1.6 billion, with various loans contributing to its capital structure:
| Loan Type | Amount ($ millions) | Interest Rate | Maturity Date |
|---|---|---|---|
| Mizrahi 2023 Loan | $100 million | 5.3% | 2026 |
| Hapoalim 2024 Loan | $150 million | 6.0% | 2027 |
| Discount 2024 Loan | $31.8 million | 6.75% | 2032 |
Ormat maintains a robust liquidity position with net cash provided by operating activities of $252.3 million for the nine months ended September 30, 2024, compared to $170.3 million for the same period in 2023.
The company continues to expand its operations and invest in renewable energy projects, reinforcing its position as a leader in the geothermal energy market.
A Who Owns Ormat Technologies, Inc. (ORA)
Major Shareholders
As of 2024, the ownership structure of Ormat Technologies, Inc. is characterized by a diverse array of institutional and individual shareholders. The major shareholders include:
| Shareholder | Ownership Percentage | Number of Shares Owned |
|---|---|---|
| BlackRock, Inc. | 10.7% | 6,482,003 |
| The Vanguard Group, Inc. | 7.9% | 4,774,000 |
| State Street Corporation | 5.5% | 3,343,000 |
| Dimensional Fund Advisors LP | 3.6% | 2,183,000 |
| Wellington Management Group LLP | 3.4% | 2,052,000 |
| Directors and Executive Officers | 2.1% | 1,268,000 |
| Other Institutional Investors | 14.9% | 8,950,000 |
| Retail Investors | 51.9% | 31,400,000 |
Insider Ownership
Insider ownership plays a significant role in the governance of Ormat Technologies. As of November 2024, the company's executives and directors hold approximately 2.1% of the total shares, translating to around 1,268,000 shares. This ownership aligns their interests with those of shareholders, fostering a commitment to the company's long-term success.
Stock Performance and Market Capitalization
Ormat Technologies has shown strong market performance with a current market capitalization of approximately $2.5 billion. The stock price has fluctuated between $80 and $100 per share during the past year, reflecting investor confidence and the company's robust operational performance.
Recent Acquisitions and Strategic Moves
On January 4, 2024, Ormat Technologies completed the acquisition of a portfolio of geothermal and solar assets from Enel Green Power North America for $272 million, enhancing its renewable energy footprint. This strategic move is expected to contribute significantly to future revenue streams and solidify Ormat's position in the renewable energy sector.
Financial Overview
For the nine months ended September 30, 2024, Ormat reported total revenues of $648.9 million, with a net income attributable to stockholders of $84.3 million. This financial performance underscores the company's effective management and strategic growth initiatives in the energy sector.
Shareholder Engagement
Ormat Technologies actively engages with its shareholders through regular communications, including quarterly earnings calls and annual shareholder meetings. This engagement aims to ensure transparency and foster a strong relationship with its investor base.
Future Outlook
Looking ahead, Ormat Technologies plans to continue its focus on expanding its renewable energy portfolio, with anticipated capital expenditures of approximately $378 million in 2024 for new projects and enhancements. The company's commitment to sustainability and innovation positions it well for future growth in the evolving energy landscape.
Ormat Technologies, Inc. (ORA) Mission Statement
Overview
Ormat Technologies, Inc. focuses on delivering sustainable energy solutions through the development of geothermal and recovered energy-based power plants. The company aims to provide reliable, efficient, and environmentally friendly energy while contributing to the global transition toward renewable energy sources.
Core Values and Strategic Objectives
- Innovation: Commitment to advancing technology in geothermal energy and energy storage solutions.
- Sustainability: Focus on reducing carbon footprint and promoting sustainable practices across operations.
- Customer Commitment: Ensuring customer satisfaction through reliable service and high-quality energy solutions.
- Community Engagement: Building strong relationships with local communities and stakeholders.
Financial Performance
As of September 30, 2024, Ormat Technologies reported the following financial results:
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Total Revenues | $211,784,000 | $208,056,000 | $648,913,000 | $588,084,000 |
| Gross Profit | $58,862,000 | $60,003,000 | $199,058,000 | $185,562,000 |
| Operating Income | $37,567,000 | $34,787,000 | $123,385,000 | $114,957,000 |
| Net Income | $22,100,000 | $32,800,000 | $84,300,000 | $80,100,000 |
Project Developments
In 2024, Ormat has made significant strides in expanding its energy portfolio, including:
- Acquisition of a geothermal and solar asset portfolio from Enel Green Power North America for $272 million, enhancing capacity by approximately 40 MW of geothermal and 20 MW of solar.
- Commencement of commercial operations for the 80MW/320MWh Bottleneck Battery Energy Storage System in California.
- Successful completion of a 30-year Power Purchase Agreement (PPA) with Electricité de France for a new 10MW geothermal plant in Guadeloupe.
Capital Expenditures and Financial Position
Ormat anticipates capital expenditures of approximately $143 million for the remainder of 2024, allocated as follows:
| Category | Amount ($ millions) |
|---|---|
| New Project Development | 75.0 |
| Enhancements to Existing Power Plants | 40.0 |
| Maintenance Capital Expenditures | 10.0 |
| Energy Storage Projects | 15.0 |
Liquidity and Debt Management
As of September 30, 2024, Ormat's liquidity position included:
- Cash and cash equivalents of $88.1 million.
- Unused corporate borrowing capacity of $440.2 million.
The company’s long-term debt as of the same date was $1.9 billion, with 97.8% at fixed interest rates, minimizing exposure to interest rate volatility.
Conclusion of Mission Alignment
Ormat Technologies, Inc. remains committed to its mission of providing sustainable energy solutions while ensuring financial stability and growth through innovative projects and strategic partnerships.
How Ormat Technologies, Inc. (ORA) Works
Business Segments
Ormat Technologies operates through three primary segments:
- Electricity Segment: Builds, owns, and operates geothermal and recovered energy-based power plants.
- Product Segment: Designs and manufactures equipment for geothermal energy generation.
- Energy Storage Segment: Provides battery energy storage systems (BESS) as a service.
Financial Performance
For the nine months ended September 30, 2024, Ormat reported the following financial results:
| Category | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Net Revenue from External Customers | $648,913 | $588,084 |
| Operating Income | $123,385 | $114,957 |
| Net Income | $88,616 | $94,304 |
| Adjusted EBITDA | $405,000 | $342,722 |
Revenue Breakdown
The revenue breakdown for the nine months ended September 30, 2024, is as follows:
| Segment | Revenue (in thousands) |
|---|---|
| Electricity | $522,117 |
| Product | $100,018 |
| Energy Storage | $26,778 |
Cost of Revenues
The cost of revenues for the nine months ended September 30, 2024, is detailed below:
| Segment | Cost (in thousands) |
|---|---|
| Electricity | $342,186 |
| Product | $83,982 |
| Energy Storage | $23,687 |
Operating Expenses
The operating expenses for the nine months ended September 30, 2024, include:
| Category | Expense (in thousands) |
|---|---|
| Research and Development | $5,110 |
| Selling and Marketing | $13,541 |
| General and Administrative | $60,536 |
Recent Developments
Recent developments in Ormat's operations include:
- Acquisition of geothermal and solar assets from Enel Green Power for $272 million.
- Issuance of $45.2 million in additional convertible senior notes due 2027.
- Commencement of operations for the 6MW Beowawe Repower geothermal power plant.
Debt and Equity Structure
As of September 30, 2024, the financial position includes:
| Category | Amount (in thousands) |
|---|---|
| Total Liabilities | $3,065,502 |
| Total Stockholders' Equity | $2,513,983 |
Stock Performance
The earnings per share (EPS) for the three months ended September 30, 2024, are:
| Category | Basic EPS | Diluted EPS |
|---|---|---|
| 2024 | $0.37 | $0.36 |
| 2023 | $0.59 | $0.59 |
How Ormat Technologies, Inc. (ORA) Makes Money
Revenue Segmentation
Ormat Technologies, Inc. generates revenue through three primary segments: Electricity, Product, and Energy Storage. For the nine months ended September 30, 2024, the revenue breakdown was as follows:
| Segment | Revenue (in millions) | Percentage of Total Revenue |
|---|---|---|
| Electricity | $522.1 | 80.5% |
| Product | $100.0 | 15.4% |
| Energy Storage | $26.8 | 4.1% |
| Total Revenue | $648.9 | 100% |
Electricity Segment
The Electricity segment includes geothermal, solar PV, and recovered energy-based power plants. For the nine months ended September 30, 2024, revenues from this segment increased by 8.1% compared to the previous year, primarily due to:
- $25.5 million from geothermal and solar plants acquired from Enel Green Power North America.
- $12.3 million from the Heber 1 power plant resuming operations.
- $16.7 million from increased generation at the Puna power plant.
- Power generation increased from 5,258,274 MWh to 5,671,532 MWh, a 7.9% increase.
Product Segment
The Product segment focuses on designing, manufacturing, and selling equipment for geothermal and recovered energy generation. This segment saw a 20% revenue increase to $100 million for the nine months ended September 30, 2024, attributed to:
- Progress in international projects, particularly in New Zealand and Dominica.
- Increased equipment sales related to engineering, procurement, and construction services.
Energy Storage Segment
Revenue from the Energy Storage segment grew by 22.2% to $26.8 million for the same period. The segment operates grid-connected Battery Energy Storage Systems (BESS) and has secured fixed revenue agreements, including:
- Contracts for new projects such as the Lower Rio and Bird Dog facilities in Texas, expected to generate stable revenues starting in 2025.
- Operations of the Bottleneck project, contributing ancillary services under a long-term agreement.
Cost Structure
For the nine months ended September 30, 2024, the cost breakdown was as follows:
| Segment | Cost of Revenues (in millions) | Gross Profit (in millions) |
|---|---|---|
| Electricity | $342.2 | $179.9 |
| Product | $84.0 | $16.0 |
| Energy Storage | $23.7 | $3.1 |
| Total Cost of Revenues | $449.9 | $199.1 |
Operating Expenses
Operating expenses for the nine months ended September 30, 2024, included:
- Research and Development: $5.1 million
- Selling and Marketing: $13.5 million
- General and Administrative: $60.5 million
Net Income
For the nine months ended September 30, 2024, net income attributable to stockholders was $82.9 million, with a basic earnings per share of $1.37. This was a decrease from $88.7 million during the same period in 2023.
Debt and Financing
As of September 30, 2024, Ormat had total liabilities of $3.07 billion. The company has engaged in several financing activities, including:
- Issuance of $45.2 million in Convertible Senior Notes due 2027.
- New loan agreements totaling $200 million with various banks.
Liquidity Position
Ormat Technologies maintained a strong liquidity position with:
- Cash and cash equivalents of $88.1 million.
- Unused corporate borrowing capacity of $440.2 million.
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Resources:
- Ormat Technologies, Inc. (ORA) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Ormat Technologies, Inc. (ORA)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Ormat Technologies, Inc. (ORA)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.