Ormat reports double-digit growth in revenues for Q2 2016

Don A. Campbell (formerly Wild Rose) plant of Ormat, Nevada, U.S. (source: Ormat Technologies)

Alexander Richter 5 Ağu 2016

Earlier this week, Ormat Technologies released its financial results for the second quarter of 2016.

Compared to the same quarter of last year, Ormat increased its total revenues by 13.8% to 159.9 MW and electricity segment revenues up 14.4% to 104 million.

In a statement, Isaac Angel, Chief Executive Officer of Ormat said: “Our product segment has benefited, and will continue to benefit from higher revenue contribution, from several large contracts, and lower commodity prices, which drove gross margins in the products segment to higher than normal levels in the first half, a trend we expect to moderate through the end of the year. In the electricity segment, the contribution of new projects, and specifically the second phase of our Don Campbell Project in Nevada and Plant 4 of our Olkaria III complex in Kenya, is driving increased generation and revenues, while our focus on efficient utilization of infrastructure and operational enhancements are positively affecting gross margins.

“On the product side, we continued to win orders and strengthen our backlog,” added Mr. Angel. “In May, we signed $36 million Supply and EPC contracts, with Eastland Group for the Te Ahi O Maui geothermal project located near Kawerau, New Zealand. This contract as well as other new contracts that we recently signed increased our backlog to $228 million.”

“Looking forward we continue with the implementation of our strategic plan to expand our geographic presence as well as our footprint in the energy storage market which will further advance our goal of transitioning Ormat from a geothermal company to a recognized leader in the renewable energy industry,” continued Mr. Angel.

It will be interesting to see how things evolve for the company in the second half of this year.

Source: Ormat release