Ormat Technologies, Inc. (ORA): History, Ownership, Mission, How It Works & Makes Money

Interested in renewable energy and a company making strides in the field? Have you heard of Ormat Technologies, Inc. (ORA), a key player in geothermal and recovered energy solutions?

With $879.7 million in total revenues for the full year 2024, marking a 6.1% increase compared to 2023, and a presence in over 30 countries, Ormat is delivering clean, reliable energy solutions worldwide. Keep reading to explore Ormat's journey, its ownership structure, its mission, and how it generates revenue in the dynamic world of renewable energy.

Ormat Technologies, Inc. (ORA) History

Founding Timeline

Year established

The company was established in 1965.

Original location

The original location was in Israel.

Founding team members

The founding team members were Lucien Bronicki and Yehuda Bronicki.

Initial capital/funding

Details on the initial capital or funding at the company's founding are not widely or readily available in the provided search results.

Evolution Milestones

Transformative Moments

• Development of the Ormat Energy Converter (OEC): This technology significantly improved the efficiency of geothermal power plants, allowing for the utilization of lower-temperature resources.
• Initial Public Offering (IPO) in 2004: This event provided substantial capital for expansion and solidified the company's position in the renewable energy sector.
• Strategic Acquisitions: Acquisitions such as that of U.S. Geothermal Inc. in 2021 have expanded the company's portfolio and market presence.
• Going Private and Public Again: The decision to go private in 2017 and then return to the public market in 2019 reflects strategic realignments and growth phases in response to market conditions and internal objectives.

To gain more insights into the investors profile of the company, check out this link: Exploring Ormat Technologies, Inc. (ORA) Investor Profile: Who’s Buying and Why?

Ormat Technologies, Inc. (ORA) Ownership Structure

Ormat Technologies, Inc. features a mixed ownership structure, with a significant portion of its shares held by institutional investors, alongside individual shareholders and company insiders.

Ormat Technologies, Inc.'s Current Status

Ormat Technologies, Inc. (ORA) is a publicly traded company, meaning its shares are available for purchase on the open market, specifically on the New York Stock Exchange (NYSE).

Ormat Technologies, Inc.'s Ownership Breakdown

As of Q1 2024, the ownership breakdown of Ormat Technologies, Inc. is as follows:

Ormat Technologies, Inc.'s Leadership

The leadership team plays a crucial role in guiding Ormat Technologies, Inc.'s strategic direction and operational execution. Key figures include:

• Doron Blachar: Chief Executive Officer
• Assaf Ginzburg: Chief Financial Officer

Understanding the company's mission, vision, and core values provides additional insight into its strategic goals. For more information, refer to Mission Statement, Vision, & Core Values of Ormat Technologies, Inc. (ORA).

Ormat Technologies, Inc. (ORA) Mission and Values

Ormat Technologies is dedicated to providing sustainable energy solutions through geothermal and recovered energy generation. The company values innovation, environmental stewardship, and community engagement in its operations.

Ormat Technologies' Core Purpose

Official mission statement

Ormat Technologies' mission statement is: 'To be a leading global provider of renewable energy and energy efficiency solutions.' This encapsulates their commitment to delivering environmentally responsible energy alternatives and improving energy usage efficiency worldwide.

Vision statement

Ormat's vision includes:

• Expanding its global footprint in geothermal and recovered energy generation.
• Driving technological innovation to enhance energy production efficiency and sustainability.
• Fostering strong relationships with stakeholders, including communities and governments, to promote renewable energy adoption.

Company slogan/tagline

While specific slogans or taglines can evolve, Ormat consistently emphasizes its role in:

• Providing reliable and clean energy solutions.
• Promoting environmental sustainability.
• Advancing renewable energy technologies.

For more in-depth insights into Ormat Technologies and its investors, check out: Exploring Ormat Technologies, Inc. (ORA) Investor Profile: Who’s Buying and Why?

Ormat Technologies, Inc. (ORA) How It Works

Ormat Technologies, Inc. specializes in providing renewable energy solutions, primarily geothermal and recovered energy generation. The company operates by developing, building, owning, and operating geothermal and recovered energy-based power plants.

Ormat Technologies, Inc.'s Product/Service Portfolio

Ormat Technologies, Inc.'s Operational Framework

Ormat operates through two main segments: Electricity and Product. The Electricity segment involves generating and selling electricity from its geothermal and REG power plants. The Product segment focuses on designing, manufacturing, and selling geothermal equipment and providing related services.

• Project Development: Ormat identifies and develops geothermal resources and REG opportunities. This includes exploration, resource assessment, and securing necessary permits and financing.
• Engineering and Construction: The company designs and constructs power plants, utilizing its proprietary technologies and equipment.
• Plant Operation and Maintenance: Ormat operates and maintains its power plants to ensure optimal performance and reliability. This includes managing the geothermal resource, performing routine maintenance, and addressing any operational issues.
• Electricity Sales: Ormat sells the electricity generated from its plants under long-term power purchase agreements (PPAs) with utilities and other customers.
• Product Sales: Ormat sells geothermal equipment, including turbines and generators, to project developers and power plant operators worldwide.

Ormat Technologies, Inc.'s Strategic Advantages

• Integrated Model: Ormat’s integrated business model, which includes project development, engineering, construction, and operation, provides a competitive advantage. This allows the company to control costs, ensure quality, and optimize project performance.
• Proprietary Technology: Ormat’s proprietary geothermal technology, including its air-cooled condensers and binary power plants, enhances efficiency and reduces environmental impact.
• Global Presence: Ormat has a global presence, with operations and projects in various countries. This geographic diversification reduces risk and provides access to different markets and resources.
• Long-Term Contracts: Ormat’s long-term PPAs provide a stable revenue stream and reduce exposure to market volatility.
• Focus on Sustainability: Ormat’s focus on renewable energy and sustainable practices aligns with growing global demand for clean energy solutions.

To gain more insights into Ormat's financial performance, you can explore: Breaking Down Ormat Technologies, Inc. (ORA) Financial Health: Key Insights for Investors

Ormat Technologies, Inc. (ORA) How It Makes Money

Ormat Technologies, Inc. primarily generates revenue by building, owning, and operating geothermal power plants, as well as selling electricity. Additionally, they derive income from the sale of geothermal equipment and providing related services.

Ormat Technologies, Inc.'s Revenue Breakdown

Ormat Technologies, Inc.'s Business Economics

Ormat's business economics are significantly influenced by several key factors:

• Geothermal Resource Availability: The accessibility and quality of geothermal resources are critical. High-quality resources lead to more efficient and cost-effective energy production.
• Government Regulations and Incentives: Government policies, such as tax incentives, feed-in tariffs, and renewable energy mandates, play a crucial role in Ormat's profitability. Favorable regulations can significantly boost project viability.
• Technological Innovation: Continuous advancements in geothermal technology, such as enhanced geothermal systems (EGS) and binary cycle power plants, improve efficiency and reduce operational costs.
• Power Purchase Agreements (PPAs): Long-term PPAs with utilities provide a stable revenue stream. The terms of these agreements, including pricing and duration, are vital to Ormat's financial health.
• Operating Efficiency: Efficient plant operations, including maintenance and resource management, are essential for maximizing energy output and minimizing downtime.

Ormat Technologies, Inc.'s Financial Performance

Ormat's financial performance can be assessed through the following:

• Revenue Growth: Ormat has demonstrated consistent revenue growth, driven by the expansion of its geothermal power plant portfolio and increased electricity generation. In 2024, the company's total revenues reached $818.7 million, up from $771.6 million in 2023, reflecting a growth of 6.1%.
• Profitability: Ormat maintains healthy profitability margins. The gross profit for 2024 was $278.4 million, compared to $262.7 million in 2023. The company's net income attributable to stockholders for 2024 was $79.2 million, or $1.37 per diluted share, compared to $68.5 million, or $1.22 per diluted share, for 2023.
• Cash Flow: Strong cash flow generation is a hallmark of Ormat's financial performance. The company's cash provided by operating activities was $429.9 million in 2024, compared to $367.6 million in 2023.
• Strategic Investments: Ormat strategically invests in new projects and technologies to drive future growth. Capital expenditures for 2024 totaled $408.9 million, primarily for development of new geothermal and energy storage projects.

To gain a deeper understanding of Ormat's financial stability and growth potential, explore Breaking Down Ormat Technologies, Inc. (ORA) Financial Health: Key Insights for Investors.

Ormat Technologies, Inc. (ORA) Market Position & Future Outlook

Ormat Technologies is strategically positioned for continued growth in the renewable energy sector, particularly within geothermal power. Their expertise, coupled with increasing global demand for clean energy, sets a positive trajectory. More information about the company's financial standing can be found here: Breaking Down Ormat Technologies, Inc. (ORA) Financial Health: Key Insights for Investors.

Competitive Landscape

Ormat operates in the competitive renewable energy market, facing competition from other geothermal companies, as well as firms specializing in solar, wind, and other renewable energy sources. Here's a simplified overview:

Opportunities & Challenges

Ormat faces both opportunities and risks that could significantly influence its future performance:

Industry Position

Ormat's standing in the renewable energy industry is characterized by:

• Strong geothermal focus: Ormat is a leading player specializing in geothermal energy, differentiating itself from broader renewable energy companies.
• Vertically integrated model: This allows Ormat to control various aspects of project development, from exploration to power plant operation, potentially improving efficiency and profitability.
• Global presence: Ormat has operations in several countries, reducing reliance on any single market.