Ormat Technologies(ORA)2024-11-07 16:59Revenue Sources - In the three months ended September 30, 2024, the Electricity segment generated 71.0% of its revenues from the United States and 29.0% from international operations[116] - The Product segment derived 8.6% of its revenues from the United States and 91.4% from international markets during the same period[116] - The Energy Storage segment's revenues were entirely from operations in the United States for the three months ended September 30, 2024[116] - Domestic revenues in the Electricity segment accounted for approximately 73% of total revenues for the nine months ended September 30, 2024, compared to 70% in 2023[127] - Foreign revenues in the Electricity segment were approximately 27% of total revenues for the nine months ended September 30, 2024, down from 30% in 2023[127] - For the nine months ended September 30, 2024, 36% of total revenues were derived from foreign locations, down from 38% in 2023[125] Financial Performance - For the nine months ended September 30, 2024, total revenues increased by 10.3% to 588.1 million in the same period of 2023[124] - Electricity segment revenues for the nine months ended September 30, 2024, were 482.8 million in the prior year[124] - Product segment revenues decreased by 6.2% to 83.3 million in the same period of 2023[124] - Energy storage segment revenues decreased by 11.1% to 21.9 million in the prior year[124] - Total revenues for the three months ended September 30, 2024, were 208.1 million in the same period of 2023[138] - Net income attributable to the Company's stockholders for the three months ended September 30, 2024, was 35.5 million in the prior year[1] - Net income for the nine months ended September 30, 2024 was 94.3 million for the same period in 2023[213] Operating Costs and Expenses - Gross profit for the three months ended September 30, 2024, was 60.0 million in the same quarter of 2023[1] - Operating income for the three months ended September 30, 2024, was 37.6 million in the same period of 2023[1] - General and administrative expenses rose significantly to 14.0 million in the same quarter of 2023[1] - Total cost of revenues for the Electricity segment increased to 107.2 million in the same period of 2023, an increase of 7.3%[145] - General and administrative expenses rose to 49.5 million in 2023, marking a 1.8 million for the three months ended September 30, 2024, compared to 45.2 million of 2.50% Convertible Senior Notes due 2027 to refinance current debt[118] - The company expects to finance estimated capital needs of 45.5 million for long-term debt repayment through various liquidity sources[191] - Capital expenditures for the nine months ended September 30, 2024 were 448.8 million in the same period of the prior year[211] - Capital expenditures budgeted at approximately 154.0 million invested as of September 30, 2024[220] Project Developments - The company commenced commercial operations for its largest energy storage facility, the 80MW/320MWh Bottleneck project, in October 2024[118] - A 15-year Resource Adequacy Purchase and Sale Agreement was signed with the City of Riverside for the 80MW/320MWh Shirk Battery Energy Storage System, with a guaranteed commercial operation date of March 1, 2026[118] - The company commenced operation of the 6MW Beowawe Repower geothermal power plant in the second quarter of 2024[118] - On March 4, 2024, the company signed a 30-year PPA with EDF for a new 10MW geothermal power plant in Guadeloupe, expected to be operational by the end of 2025[120] - Zunil Upgrade in Guatemala to add 5MW capacity, with commercial operation expected in 2025[217] - Beowawe Solar project in Nevada expected to generate approximately 6MW, completion anticipated by the end of 2024[217] Debt and Liquidity - As of September 30, 2024, the Company had 440.2 million of unused corporate borrowing capacity[191] - The outstanding amount of third-party debt as of September 30, 2024, includes 151.7 million in OFC 2 Senior Secured Notes - Series A[199] - The company completed the issuance of commercial paper totaling 7.9 million associated with unrecognized tax benefits as of September 30, 2024[207] Risk Management - 97.8% of consolidated long-term debt at fixed interest rates, limiting exposure to interest rate volatility[221] - Exposure to foreign currency exchange risk mitigated through forward and cross-currency swap contracts[223] - Overall operating costs have increased due to higher inflation rates since early 2022, impacting profit and gross margin[227] - Interest rate increases for both short-term and long-term debt have sharply increased, potentially raising future interest expenses[227] Accounts Receivable - As of September 30, 2024, overdue amounts from Kenya Power and Lighting Co. Ltd. (KPLC) totaled 7.8 million paid in October 2024[230] - The overdue amount from Empresa Nacional de Energía Eléctrica (ENEE) in Honduras was 1.1 million paid in October 2024[231] - The company believes it can collect all past due amounts from KPLC, supported by a government support letter covering certain non-payment cases[230] - The company has historically collected on substantially all receivable balances, indicating strong credit management[230]