Ormat Technologies Reports Second Quarter 2024 Financial Results

Core Viewpoint - Ormat Technologies, Inc. reported strong financial results for Q2 2024, with total revenues increasing by 9.3% year-over-year, driven by growth across all operating segments and improved profitability [2][3]. Financial Performance - Total revenues for Q2 2024 reached $213.0 million, up from $194.8 million in Q2 2023, marking a 9.3% increase [3][5]. - Operating income increased by 45% to $35.1 million compared to $24.2 million in the same period last year [3][5]. - Adjusted EBITDA rose by 25% to $126.1 million from $100.9 million year-over-year [3][5]. - The company increased its full-year EBITDA guidance range, reflecting strong execution and confidence in future performance [2]. Segment Performance - The Electricity segment generated revenues of $166.2 million, a 7.0% increase year-over-year, supported by the acquisition of Enel assets and improved generation at the Puna facility [3][5]. - The Energy Storage segment saw a significant revenue increase of 48.1%, driven by the addition of 83 MW of capacity and improved pricing from tolling agreements [3][5]. - The Product segment's revenues increased by 13.1%, with gross margins improving from 10.4% to 13.7% [3][5]. Guidance and Future Outlook - The company provided guidance for total revenues between $875 million and $910 million for the full year 2024 [7]. - The Electricity segment is expected to generate revenues between $710 million and $720 million, while the Energy Storage segment is projected to bring in $35 million to $45 million [7]. - Ormat aims to expand its generating portfolio to approximately 2.1 to 2.3 GW by the end of 2026, capitalizing on favorable industry trends [4][6]. Recent Developments - The company hosted an Investor Day to outline its commitment to growth in the Electricity segment and plans to enhance the Energy Storage segment [6]. - A 15-year Resource Adequacy Purchase and Sale Agreement was signed for the 80MW/320MWh Shirk Energy Storage facility, with a guaranteed commercial operation date of March 1, 2026 [6]. - The company commenced commercial operation of a 6 MW upgrade at the Beowawe geothermal power plant [6]. Dividend Announcement - On August 6, 2024, the Board of Directors declared a quarterly dividend of $0.12 per share, to be paid on September 3, 2024 [9].