Ormat Technologies, Inc. (NYSE: ORA), a leading geothermal, energy storage, solar PV and recovered energy power company, today announced financial results for the second quarter ended June 30, 2022.


  Q2 2022 Q2 2021 Change (%) H1 2022 H1 2021 Change (%)
GAAP Measures            
Revenues ($ millions)            
Electricity 151.2   133.9   12.9 % 313.7   278.9   12.5 %
Product 10.4   7.4   40.2 % 25.0   16.1   55.9 %
Energy Storage 7.5   5.6   33.1 % 14.1   18.3   (23.4 )%
Total Revenues 169.1   146.9   15.1 % 352.8   313.3   12.6 %
Gross margin (%)            
Electricity 36.8 % 37.4 %   39.4 % 41.3 %  
Product 0.2 % 20.1 %   4.2 % 12.8 %  
Energy Storage 25.3 % 6.4 %   19.8 % 45.2 %  
Gross margin (%) 34.1 % 35.4 %   36.1 % 40.1 %  
Operating income ($ millions) 38.6   28.6   34.9 % 83.7   78.5   6.6 %
Net income attributable to the Company’s stockholders 11.3   13.0   (13.6 )% 29.7   28.3   5.0 %
Diluted EPS ($) 0.20   0.23   (13.0 )% 0.53   0.50   6.0 %
Non-GAAP Measures            
Adjusted Net income attributable to the Company’s stockholders 12.2   13.0   (6.7 )% 32.0   37.1   (13.7 )%
Adjusted Diluted EPS ($) 0.22   0.23   (6.4 )% 0.57   0.66   (14.0 )%
Adjusted EBITDA1 ($ millions) 100.7   84.5   19.1 % 208.5   183.8   13.5 %

“Ormat’s second quarter financial performance demonstrated healthy top-line and Adjusted EBITDA growth, driven by strong performance from our Electricity segment as well as our Energy Storage Segment,” said Doron Blachar, Ormat’s Chief Executive Officer. “Our robust top-line and solid margin capture are driving significant expansion to both Adjusted EBITDA1 and Operating Income. Our bottom line was negatively impacted by a $2.9 million after-tax loss related to foreign currency hedging that reduced our earnings per share by approximately 5 cents. The strong performance of our Electricity and Energy Storage segments is expected to continue in the second half of the year, benefiting from the ramp up in the operation of new five different projects with a total capacity of 73MW added since the end of the first quarter.”

“We are encouraged by our robust pipeline and our ability to benefit from the attractive energy rates and structure of the three portfolio PPAs we signed in Nevada and California for up to 285MW. These agreements demonstrate the increased demand for geothermal energy, while securing most of our PPA renewals and the capacity we plan to add in the next few years in the U.S. We remain confident with our long-term plans to increase our combined geothermal, energy storage and solar generating portfolio to approximately 1.5 GW by 2023 and to deliver an annual Adjusted EBITDA of $500 million on a run-rate basis towards the end of 2022,” Blachar added.

_______________1 Reconciliation is set forth below in this release


  • Net income attributable to the Company's stockholders and diluted EPS for the second quarter of 2022 decreased 13.6% and 13.0%, respectively, versus the prior year period. The decrease was mainly due to a $4.0 million pre-tax loss ($2.9 million after tax) from currency-related headwinds attributed to a stronger U.S. dollar, and $1.1 million pre-tax ($0.8 million after tax) of other expenses related to debt extinguishment costs.
  • Adjusted Net income attributable to the Company's stockholders and adjusted diluted EPS for the second quarter of 2022 decreased 6.7% and 6.4%, respectively, versus the prior year period.
  • Adjusted EBITDA for the second quarter of 2022 was $100.7 million, an increase of 19.1% compared to $84.5 million in 2021, supported by growth in the Electricity segment and lower G&A costs mainly as a result of the reduction in legal costs.
  • Electricity segment revenues increased 12.9% for the second quarter of 2022, compared to 2021, driven by focused execution against our strategic plan, supported by the addition of the Terra-Gen assets to our portfolio, the expansion of the Tungsten 2 power plant, and the realization of higher prices and generation at Puna, partially offset by the partial operation of the Heber 1 power plant and Dixie Valley’s accelerated maintenance work.
  • Product segment revenues increased 40.2% to $10.4 million, and cost of revenues increased 75%. In the second quarter, we recognized revenues for contracts that were signed in 2021 and negatively impacted by higher raw materials costs in 2022.
  • Product segment backlog grew this quarter by 20.1% compared to the first quarter of 2022. Backlog stands at $54.9 million as of August 03, 2022, and we were able to sign contracts awarded earlier in the quarter totaling approximately $20 million.
  • Energy storage segment revenues increased 33.1% to $7.5 million, primarily due to a $2.4 million increase in revenues attributed to the PJM assets related to an increase in commodity prices.


  • Signed two large PPAs with NV Energy for up to 160 MW of Geothermal capacity.
  • Executed a PPA with CC Power for up to 125 MW of Geothermal capacity.
  • Commenced commercial operation of several projects including the CD4 and Tungsten 2 geothermal power plants, Wister and Steamboat solar plants, and Tierra Buena BESS, adding 73MW since the end of the first quarter
  • Strengthened its financial flexibility with the offering of $431.3 million in green convertible senior notes due in 2027 at an attractive coupon rate of 2.5%. The proceeds were mainly used to refinance higher-cost debt and the remainder will be used to support our renewable energy growth.
  • Buy back of approximately 260K shares at an attractive price
  • Prepaid $221.9 million of more expensive senior unsecured bond series 3.
  • Improved the diversity of its board of directors, adding two new highly skilled female members


  • Total revenues of between $710 million and $735 million.
  • Electricity segment revenues between $630 million and $640 million.
  • Product segment revenues of between $50 million and $60 million.
  • Energy Storage revenues of between $30 million and $35 million.
  • Adjusted EBITDA to be between $430million and $450million, including$15.0million for business interruption insurance proceeds, of which5.2 million were recorded in the six months ended June 30, 2022.
    • Adjusted EBITDA attributable to minority interest of approximately $38 million.

The Company provides a reconciliation of Adjusted EBITDA, a non-GAAP financial measure for the three months ended June 30, 2022. However, the Company does not provide guidance on net income and is unable to provide a reconciliation for its Adjusted EBITDA guidance range to net income without unreasonable efforts due to high variability and complexity with respect to estimating certain forward-looking amounts. These include impairments and disposition and acquisition of business interests, income tax expense, and other non-cash expenses and adjusting items that are excluded from the calculation of Adjusted EBITDA.


On August 3, 2022, the Company’s Board of Directors declared, approved, and authorized payment of a quarterly dividend of $0.12 per share pursuant to the Company’s dividend policy. The dividend will be paid on August 31, 2022, to stockholders of record as of the close of business on August 17, 2022. In addition, the Company expects to pay a quarterly dividend of $0.12 per share in each of the next two quarters.


Ormat will host a conference call to discuss its financial results and other matters discussed in this press release on Thursday, August 4 at 10:00 a.m. ET. The call will be available as a live, listen-only webcast at investor.ormat.com. During the webcast, management will refer to slides that will be posted on the website. The slides and accompanying webcast can be accessed through the News & Events in the Investor Relations section of Ormat’s website. A replay of the webcast will be available approximately 120 minutes after the conclusion of the live call and will be archived for 12 months.

Investors may access the call by dialing:
  Canadian participant dial in (toll free): 1-833-950-0062
  United States participant international dial-in: 1-844-200-6205
  All other locations: +1-929-526-1599
  Access code: 044204
Conference replay
  US Toll Free: 1-866-813-9403
  Canada: 1-226-828-7578
  International Toll: +44-204-525-0658
  Replay Access Code: 113274


With over five decades of experience, Ormat Technologies, Inc. is a leading geothermal company and the only vertically integrated company engaged in geothermal and recovered energy generation (“REG”), with robust plans to accelerate long-term growth in the energy storage market and to establish a leading position in the U.S. energy storage market. The Company owns, operates, designs, manufactures and sells geothermal and REG power plants primarily based on the Ormat Energy Converter – a power generation unit that converts low-, medium- and high-temperature heat into electricity. The Company has engineered, manufactured and constructed power plants, which it currently owns or has installed for utilities and developers worldwide, totaling approximately 3,200 MW of gross capacity. Ormat leveraged its core capabilities in the geothermal and REG industries and its global presence to expand the Company’s activity into energy storage services, solar Photovoltaic (PV) and energy storage plus Solar PV. Ormat’s current total generating portfolio is 1,168 MW with a 1,080 MW geothermal and solar generation portfolio that is spread globally in the U.S., Kenya, Guatemala, Indonesia, Honduras, and Guadeloupe, and an 88 MW energy storage portfolio that is located in the U.S.


Information provided in this press release may contain statements relating to current expectations, estimates, forecasts and projections about future events that are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that we expect or anticipate will or may occur in the future, including such matters as our projections of annual revenues, expenses and debt service coverage with respect to our debt securities, future capital expenditures, business strategy, competitive strengths, goals, development or operation of generation assets, market and industry developments and the growth of our business and operations, are forward-looking statements. When used in this press release, the words “may”, “will”, “could”, “should”, “expects”, “plans”, “anticipates”, “believes”, “estimates”, “predicts”, “projects”, “potential”, or “contemplate” or the negative of these terms or other comparable terminology are intended to identify forward-looking statements, although not all forward-looking statements contain such words or expressions. These forward-looking statements generally relate to Ormat's plans, objectives and expectations for future operations and are based upon its management's current estimates and projections of future results or trends. Although we believe that our plans and objectives reflected in or suggested by these forward-looking statements are reasonable, we may not achieve these plans or objectives. Actual future results may differ materially from those projected as a result of certain risks and uncertainties and other risks described under "Risk Factors" as described in Ormat’s annual report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on February 25, 2022, and in Ormat’s subsequent quarterly reports on Form 10-Q and annual reports on Form 10-K that are filed from time to time with the SEC.

These forward-looking statements are made only as of the date hereof, and, except as legally required, we undertake no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.

ORMAT TECHNOLOGIES, INC AND SUBSIDIARIESCondensed Consolidated Statement of OperationsFor the Three and Six-Month periods Ended June 30, 2022, and 2021

  Three Months Ended June 30, Six Months Ended June 30,
  2022   2021   2022   2021  
  (Dollars in thousands, except per share data)
Electricity         151,195   133,864   313,720   278,852  
Product         10,392   7,410   25,020   16,053  
Energy storage          7,491   5,627   14,048   18,348  
Total revenues         169,078   146,901   352,788   313,253  
Cost of revenues:        
Electricity         95,517   83,736   190,038   163,587  
Product         10,367   5,924   23,980   13,998  
Energy storage          5,593   5,266   11,264   10,046  
Total cost of revenues         111,477   94,926   225,282   187,631  
Gross profit         57,601   51,975   127,506   125,622  
Operating expenses:        
Research and development expenses         1,388   1,128   2,452   2,004  
Selling and marketing expenses         3,952   3,988   8,317   8,264  
General and administrative expenses         13,526   18,240   31,098   36,846  
Write-off of Energy Storage projects and assets 128     1,954    
Operating income         38,607   28,619   83,685   78,508  
Other income (expense):        
Interest income         179   808   521   1,071  
Interest expense, net         (20,418 ) (18,626 ) (41,499 ) (37,642 )
Derivatives and foreign currency transaction gains (losses)         (3,998 ) 658   (3,738 ) (16,208 )
Income attributable to sale of tax benefits         9,527   7,420   17,232   13,775  
Other non-operating income (expense), net         (1,260 ) (21 ) (1,185 ) (352 )
Income from operations before income tax and equity in earnings (losses) of investees         22,637   18,858   55,016   39,152  
Income tax (provision) benefit         (6,130 ) (4,268 ) (16,293 ) (7,275 )
Equity in earnings (losses) of investees, net         (1,562 ) 605   (985 ) 1,147  
Net income         14,945   15,195   37,738   33,024  
Net income attributable to noncontrolling interest (3,685 ) (2,169 ) (8,048 ) (4,739 )
Net income attributable to the Company's stockholders         11,260   13,026   29,690   28,285  
Earnings per share attributable to the Company's stockholders:        
Basic: 0.20   0.23   0.53   0.51  
Diluted: 0.20   0.23   0.53   0.50  
Weighted average number of shares used in computation of earnings per share attributable to the Company's stockholders:        
Basic         56,114   55,992   56,089   55,990  
Diluted         56,498   56,316   56,431   56,502  

ORMAT TECHNOLOGIES, INC AND SUBSIDIARIESCondensed Consolidated Balance SheetFor the Periods Ended June 30, 2022, and December 31, 2021

  June 30, 2022   December 31, 2021
Current assets:      
Cash and cash equivalents         263,425     239,278  
Marketable securities at fair value             43,343  
Restricted cash and cash equivalents          92,956     104,166  
Trade          123,398     122,944  
Other         18,910     18,144  
Inventories         32,213     28,445  
Costs and estimated earnings in excess of billings on uncompleted contracts 13,823     9,692  
Prepaid expenses and other         40,883     35,920  
Total current assets         585,608     601,932  
Investment in unconsolidated companies         114,699     105,886  
Deposits and other         40,942     78,915  
Deferred income taxes         137,961     143,450  
Property, plant and equipment, net 2,287,498     2,294,973  
Construction-in-process          912,376     721,483  
Operating leases right of use          19,935     19,357  
Finance leases right of use          5,541     6,414  
Intangible assets, net         347,216     363,314  
Goodwill         90,200     89,954  
Total assets         4,541,976     4,425,678  
Current liabilities:      
Accounts payable and accrued expenses         144,522     143,186  
Billings in excess of costs and estimated earnings on uncompleted contracts 12,707     9,248  
Current portion of long-term debt:      
Limited and non-recourse (primarily related to VIEs): 76,976     61,695  
Full recourse         101,614     313,846  
Financing Liability         13,039     10,835  
Operating lease liabilities         2,242     2,564  
Finance lease liabilities         2,013     2,782  
Total current liabilities         353,113     544,156  
Long-term debt, net of current portion:      
Limited and non-recourse: 492,402     539,664  
Full recourse: 714,039     740,335  
Convertible senior notes         420,418      
Financing liability         236,057     242,029  
Operating lease liabilities         17,394     16,462  
Finance lease liabilities         4,135     4,361  
Liability associated with sale of tax benefits         122,894     134,953  
Deferred income taxes         80,965     84,662  
Liability for unrecognized tax benefits         6,244     5,730  
Liabilities for severance pay         14,288     15,694  
Asset retirement obligation         87,483     84,891  
Other long-term liabilities         4,254     4,951  
Total liabilities         2,553,686     2,417,888  
Commitments and contingencies      
Redeemable noncontrolling interest         8,996     9,329  
The Company's stockholders' equity:      
Common stock         56     56  
Additional paid-in capital         1,253,242     1,271,925  
Treasury stock, at cost          (17,964 )    
Retained earnings         601,441     585,209  
Accumulated other comprehensive income (loss)         (4,148 )   (2,191 )
Total stockholders' equity attributable to Company's stockholders         1,832,627     1,854,999  
Noncontrolling interest         146,667     143,462  
Total equity         1,979,294     1,998,461  
Total liabilities, redeemable noncontrolling interest and equity         4,541,976     4,425,678  

ORMAT TECHNOLOGIES, INC AND SUBSIDIARIESReconciliation of EBITDA and Adjusted EBITDA For the Three- and Six-Month Periods Ended June 30, 2022, and 2021

We calculate EBITDA as net income before interest, taxes, depreciation and amortization. We calculate Adjusted EBITDA as net income before interest, taxes, depreciation and amortization, adjusted for (i) termination fees, (ii) impairment of long-lived assets, (iii) write-off of unsuccessful exploration activities, (iv) any mark-to-market gains or losses from accounting for derivatives, (v) merger and acquisition transaction costs, (vi) stock-based compensation, (vii) gain or loss from extinguishment of liabilities, (viii) gain or loss on sale of subsidiary and property, plant and equipment and (ix) other unusual or non-recurring items. EBITDA and Adjusted EBITDA are not measurements of financial performance or liquidity under accounting principles generally accepted in the United States, or U.S. GAAP, and should not be considered as an alternative to cash flow from operating activities or as a measure of liquidity or an alternative to net earnings as indicators of our operating performance or any other measures of performance derived in accordance with U.S. GAAP. We use EBITDA and Adjusted EBITDA as a performance metric because it is a metric used by our Board of Directors and senior management in evaluating our financial performance. However, other companies in our industry may calculate EBITDA and Adjusted EBITDA differently than we do.

The following table reconciles net income to EBITDA and Adjusted EBITDA for the three- and six-Month periods ended June 30, 2022, and 2021.

  Three Months Ended June 30,   Six Months Ended June 30,
    2022     2021       2022     2021  
  (Dollars in thousands)   (Dollars in thousands)
Net income          $         14,945   $         15,195     $         37,738   $         33,024  
Adjusted for:              
Interest expense, net (including amortization of deferred financing costs)   20,239     17,818       40,978     36,571  
Income tax provision (benefit)           6,130     4,268       16,293     7,275  
Adjustment to investment in an unconsolidated company: our proportionate share in interest expense, tax and depreciation and amortization in Sarulla   4,167     2,899       6,291     5,364  
Depreciation and amortization            47,334     42,126       94,103     82,955  
EBITDA          $         92,815   $         82,306     $         195,403   $         165,189  
Mark-to-market (gains) or losses from accounting for derivative   3,634     (990 )     3,911     1,096  
Stock-based compensation            2,999     2,623       5,813     4,720  
Make-whole premium related to long-term debt prepayment   1,102           1,102      
Reversal of a contingent liability                         (418 )
Allowance for bad debts             115     2,980  
Hedge losses resulting from February power crisis in Texas                         9,133  
Write-off related to Storage projects and activity   128           1,953      
Merger and acquisition transaction costs                474       249     958  
Other write-off               134           134  
Adjusted EBITDA          $         100,678   $         84,547     $         208,546   $         183,792  

ORMAT TECHNOLOGIES, INC AND SUBSIDIARIESReconciliation of Adjusted Net Income attributable to the Company's stockholders and Adjusted EPS For the Three and Six-month Periods Ended June 30, 2022, and 2021

Adjusted Net Income attributable to the Company’s stockholders and Adjusted EPS are adjusted for one-time expense items that are not representative of our ongoing business and operations. The use of Adjusted Net income attributable to the Company’s stockholders and Adjusted EPS is intended to enhance the usefulness of our financial information by providing measures to assess the overall performance of our ongoing business.

The following tables reconciles Net income attributable to the Company’s stockholders and Adjusted EPS for the three-month periods ended June 30, 2022 and 2021.

  Three Months Ended June 30,   Six Months Ended June 30,
    2022     2021     2022     2021
(in millions, except for EPS)              
GAAP Net income attributable to the Company's stockholders $11.3   $13.0   $29.7   $28.3
One-time net expense related to February power crisis in Texas, net of taxes               8.8
Write-off of Energy Storage projects and assets   0.1         1.5    
Make-whole premium related to repayment of long-term debt   0.8         0.8    
Adjusted Net income attributable to the Company's stockholders $12.2   $13.0   $32.0   $37.1
GAAP diluted EPS   0.20     0.23     0.53     0.50
One-time net expense related to February power crisis in Texas, net of taxes               0.16
Write-off of Energy Storage projects and assets   0.0         0.03    
Make-whole premium related to repayment of long-term debt   0.02         0.01    
Diluted Adjusted EPS   0.22     0.23     0.57     0.66
Ormat Technologies Contact:Smadar LaviVP Head of IR and ESG Planning & Reporting 775-356-9029 (ext. 65726)slavi@ormat.com   Investor Relations Agency Contact:Sam Cohen or Joseph CaminitiAlpha IR Group312-445-2870ORA@alpha-ir.com 
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