Ormat Technologies Issues Statement

Rhea-AI Summary

Ormat Technologies (NYSE: ORA) has issued a statement refuting claims made by Hindenburg Research, labeling them as inaccurate and misleading. The company highlights its commitment to ethical operations, supported by extensive due diligence from multinational banks financing its renewable energy facilities in Kenya, Honduras, and Guatemala. Ormat is monitoring ongoing investigations concerning board members linked to prior employment but asserts its strong performance and strategic direction, emphasizing a robust long-term growth plan in the geothermal and energy storage sectors.

Positive

• Ormat highlights its commitment to ethical practices and strong community support through renewable energy projects.
• The company maintains financing relationships with leading multinational banks, indicating financial stability and confidence in its operations.
• Ormat's unique position as the only vertically integrated company in the geothermal industry enhances its competitive advantage.

Negative

• Ongoing investigations into board member conduct may negatively affect investor confidence.
• The potential impact of these investigations on the company's compliance function may introduce operational risks.

Comments in Short Seller Report are Inaccurate, False and Misleading

RENO, Nev. , March 01, 2021 (GLOBE NEWSWIRE) -- Ormat Technologies, Inc. (NYSE: ORA) (the “Company” or “Ormat”) issued the following statement in response to a March 1, 2021 write up by Hindenburg Research LLC (“Hindenburg”). Hindenburg is a self-proclaimed short seller who we believe stands, along with its clients, to realize significant gains in the event that Ormat’s stock price declines.

Hindenburg’s claims are inaccurate and filled with innuendo in an attempt to mislead investors about Ormat.

We have been providing clean renewable energy in Kenya, Honduras and Guatemala for many years, supporting local communities. Our facilities are financed by numerous leading multinational banks, which conduct extensive due diligence on the Company and its operations prior to entering into lending agreements. We are committed to conducting all of our business according to the highest ethical standards, and we have clear policies in place to ensure our people and our partners act accordingly and consistent with all applicable laws and regulations. 

The Company is aware of claims being investigated in Israel regarding Ravit Barniv, an Ormat Board member, and Hezi Kattan, the Company’s General Counsel and Chief Compliance Officer. The claims involve Ms. Barniv’s and Mr. Kattan’s work at another company, prior to joining Ormat. Those claims remain subject to a governmental hearing that may take time to conclude and Ormat is monitoring the process closely.

On February 24, 2021, the Company’s Board of Directors determined that, at this time, it would be prudent to transfer the responsibility for the Company’s compliance function to other members of the Ormat management team until these issues are resolved. In addition, Ms. Barniv told the Board of Directors that she believes that investor attention should be focused on Ormat’s strong performance and future prospects. Accordingly, she has decided not to stand for reelection at the upcoming Annual Meeting expected in May.

Ormat is a global leader in geothermal energy. As the only vertically integrated company in our industry, Ormat is uniquely positioned to serve customers from plant design to supply and development of geothermal, recovered energy, and energy management and storage solutions.

Ormat’s Board of Directors and leadership team are confident in the Company’s strategy. Our strong performance shows that we are on the right path for long-term success and to continue the Company’s growth trajectory. We are focused on capitalizing on our momentum – even in light of the COVID-19 pandemic – and will continue to serve and act in accordance with our values, high ethical standards and in our shareholders’ best interests.

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 plan to accelerate long-term growth in the energy segment market to establish 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 to 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 activity into the energy storage services, solar Photovoltaic (PV) and energy storage plus Solar PV. Ormat’s current 932 MW of geothermal and Solar generating portfolio is spread globally in the U.S., Kenya, Guatemala, Indonesia, Honduras, and Guadeloupe and its 73 MW energy storage portfolio 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. 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. Actual future results may differ materially from those projected as a result of certain risks and uncertainties.

For a discussion of such risks and uncertainties, see "Risk Factors" as described in Ormat’s Form 10-K filed with the Securities and Exchange Commission (“SEC”) on February 26, 2021 and from time to time, in Ormat’s quarterly reports on Form 10-Q that are filed with the SEC.

These forward-looking statements are made only as of the date hereof, and 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 Corporate Finance and Head of Investor Relations 775-356-9029 (ext. 65726) slavi@ormat.com

Investor Relations Agency Contact: Rob Fink FNK IR 646-415-8972 rob@FNKIR.com

FAQ

What is Ormat Technologies' response to the Hindenburg Research report dated March 1, 2021?

Ormat Technologies has denounced the claims made by Hindenburg Research as inaccurate and misleading, emphasizing its commitment to ethical operations.

How has Ormat Technologies performed amid investigations involving its board members?

Despite ongoing investigations, Ormat Technologies asserts its strong performance and continues to focus on its long-term growth strategy.

What is the significance of the compliance function transfer at Ormat Technologies?

The transfer of compliance responsibilities indicates a proactive approach to address concerns arising from investigations involving board members.

What are Ormat Technologies' key areas of focus for future growth?

Ormat is concentrating on expanding its geothermal and energy storage services, leveraging its unique market position.