Ormat Secures $100 Million Supply and EPC Contracts in New Zealand and Indonesia

Rhea-AI Summary

Ormat Technologies has announced significant new contracts in geothermal energy, including a 59MW EPC contract with Contact Energy in New Zealand and a 6MW supply deal with Sarulla Operations Ltd. in Indonesia. These contracts will contribute approximately $100 million in expected revenue and increase Ormat's product segment backlog to $150 million, the highest since 2020. The projects are set for delivery and construction in 2023 and 2024.

Positive

• New contracts valued at approximately $100 million enhance revenue outlook.
• Product segment backlog increases to $150 million, the highest since 2020.
• Continued relationship with Contact Energy and successful track record in New Zealand.

Negative

• None.

New Contracts Highlight Ormat’s Ability to Capture Opportunities in the Attractive Geothermal Markets of Indonesia and New Zealand to Rebuild Its Product Segment Backlog

RENO, Nev., Aug. 16, 2022 (GLOBE NEWSWIRE) -- Ormat Technologies, Inc. (NYSE: ORA), a leading geothermal, energy storage, solar PV and recovered energy power company, today announced that it has signed with Contact Energy of New Zealand (“Contact Energy”) an Engineering, Procurement and Construction (“EPC”) contract for a new maximum continuous performance 59MW geothermal power plant in New Zealand and signed a 6MW supply contract with Sarulla Operations Ltd. (“SOL”) in Indonesia. The combined expected revenue of the two contracts is approximately $100 million USD.

Under the agreement with Contact Energy, Ormat will provide its air-cooled Ormat Energy Converters for the Tehuka 3 geothermal project. This power plant will be built in the vicinity of the Tehuka 1 & 2 plants that are already operating on the Tauhara resource. This is the third EPC contract Ormat has signed with Contact Energy and the 16th geothermal power plant Ormat has built in New Zealand.

Under the signed 6MW contract with SOL, Ormat will supply its air-cooled Ormat Energy Converters as part of the remediation work being performed to improve the power plant’s performance.  

Doron Blachar, CEO of Ormat Technologies said, “The signing of these two contracts increase our Product Segment backlog to approximately $150M, the highest since 2020 and should provide a significant contribution to our expected product segment revenues and margins. After the prolonged impact Covid-19 had on our Product Segment, we are happy to see our clients are moving forward with development of new projects and expect this trend to continue.

This repeated contract with Contact Energy demonstrates our full and long-term relationship with our clients and evidences our proven technology. Ormat’s technology is designed to accommodate a wide range of geothermal reservoirs, while maintaining maximum flexibility and efficiency. We anticipate delivery and construction for these projects during 2023 and 2024.”

ABOUT ORMAT TECHNOLOGIES

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. In addition, Ormat is expanding its activity into energy storage services, solar Photovoltaic (PV) and solar PV plus energy storage. Ormat’s current total generating portfolio is 1.2 GW with 1,080 MW of 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.

ORMAT’S SAFE HARBOR STATEMENT

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 Contact: Smadar Lavi VP Head of IR and ESG Planning & Reporting 775-356-9029 (ext. 65726) slavi@ormat.com

Investor Relations Agency Contact: Sam Cohen or Joseph Caminiti Alpha IR Group 312-445-2870 ORA@alpha-ir.com

FAQ

What recent contracts has Ormat Technologies announced?

Ormat Technologies announced a 59MW EPC contract with Contact Energy in New Zealand and a 6MW supply contract with Sarulla Operations Ltd. in Indonesia.

What is the expected revenue from Ormat's new contracts?

The expected revenue from the new contracts is approximately $100 million.

How much has Ormat's product segment backlog increased?

Ormat's product segment backlog has increased to approximately $150 million, the highest level since 2020.

What is the planned timeline for the construction of the new projects?

The delivery and construction for the new projects are set for 2023 and 2024.