Ormat Technologies Reports 77.8% Increase in Annual Earnings

By Tamara Parker • Thursday, February 22 11:04 • Permanent Link

Ormat Technologies, a leading renewable energy company, has reported a significant increase in its annual diluted earnings per share (EPS) and adjusted diluted EPS for the fiscal year 2023. The company delivered a 77.8% increase in annual diluted EPS and a 25.0% increase in annual adjusted diluted EPS compared to the prior year. Ormat is also on track to meet its 2026 generating capacity goals of 2.1 to 2.3 GW.

According to the company's financial results for the fourth quarter and full year ended December 31, 2023, total revenues for the fourth quarter increased by 17.4% year-over-year, driven by growth in both the electricity and product segments. Operating income also saw a significant increase of 70.8% for the fourth quarter and 9.0% for the full year compared to 2022.

Doron Blachar, Chief Executive Officer of Ormat, expressed his satisfaction with the company's performance, stating, "I am pleased to report that Ormat delivered another quarter of solid results, marking a strong conclusion to a successful year in 2023."

Blachar added, "Our annual net income attributable to the company’s stockholders increased by 88.9% and our annual adjusted EBITDA results increased by 10.6%. These strong results were the result of our successful operation of new projects launched in 2022, which contributed to 2023 results, and the commercial operation of our geothermal, solar PV, and energy storage portfolio throughout the year, supplemented by the successful recovery of operations at our Heber 1 geothermal power plant that went online in May 2023."

Looking ahead, Blachar stated, "We are on track with our capacity expansions in both the electricity and the storage segments, with the potential to reach capacity of between 2.1 GW to 2.3 GW by the end of 2026. We anticipate an increase of 7% and 10% in total revenues and adjusted EBITDA, respectively, for 2024."

Ormat's 2024 guidance includes total revenues of between $860 million and $910 million, electricity segment revenues between $710 million and $730 million, product segment revenues of between $115 million and $135 million, energy storage revenues of between $35 million and $45 million, and adjusted EBITDA to be between $515 million and $545 million.

As of today's trading session, the company's shares have moved -4.6%, and are now trading at a price of $64.14.

The company's full 8-K submission is available here.

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