Welcome to our dedicated page for Ormat Tech news (Ticker: ORA), a resource for investors and traders seeking the latest updates and insights on Ormat Tech stock.
Company Overview
Ormat Technologies (ORA) is a seasoned renewable energy company with over five decades of expertise in harnessing the earth's heat through geothermal power, recovered energy generation, and energy storage solutions. Utilizing advanced geothermal energy, recovered energy, and energy storage technologies, Ormat has developed a vertically integrated model that spans from design and manufacturing to the development and operation of power plants across global markets.
Core Business Segments
- Electricity Segment: This division is responsible for developing, constructing, owning, and operating power plants that convert low-, medium-, and high-temperature heat into electricity. The facilities include geothermal, solar PV, and recovered energy-based plants, supplying dependable renewable power to utilities and developers.
- Product Segment: Focused on engineering innovation, this segment designs, manufactures, and sells power generation equipment. It also offers engineering, procurement, and construction (EPC) services, ensuring turnkey project deployment of geothermal and recovered energy plants.
- Energy Storage Segment: Addressing grid reliability challenges, this segment involves owning and operating grid-connected storage systems that offer capacity, energy, and ancillary services. These systems integrate seamlessly with their power generation operations, reinforcing project stability and performance.
Technological Innovation and Vertical Integration
At the heart of Ormat's operations is the Ormat Energy Converter, a proprietary power generation unit engineered to convert varying heat sources into electricity efficiently. Backed by an impressive portfolio of patents, the company continuously refines its technologies to withstand even the most challenging environmental conditions. This vertical integration—from concept and design to manufacturing, construction, and operation—fortifies Ormat's competitive positioning in the renewable energy sector.
Market Position and Global Footprint
Ormat Technologies operates on a global scale, leveraging decades of expertise to build, own, and operate diverse energy projects. Its operations span several key markets including the United States, parts of Africa, Latin America, and Asia. This extensive geographic presence enables the company to adapt its flexible, modular solutions to a wide variety of resource conditions and customer needs. Their comprehensive approach not only supports utilities and developers with reliable energy production but also bolsters grid stability through integrated energy storage solutions.
Competitive Advantages and Industry Impact
Ormat's unique market position is derived from its comprehensive, end-to-end control over the energy production process. The company’s deep technical knowledge, evidenced by a robust patent portfolio and extensive operational history, instills confidence in its ability to deliver consistent, high-quality renewable energy solutions. Furthermore, by integrating energy storage capabilities, Ormat addresses a critical need for grid reliability, distinguishing itself in a competitive market landscape that increasingly values dependable, innovative technology applications.
Operational Excellence and Engineering Mastery
Every facet of Ormat's business is underpinned by a commitment to engineering excellence and operational integrity. The company’s projects are conceived, designed, and executed with precision, ensuring optimal performance and longevity. This expertise is especially evident in its meticulous approach to developing energy conversion systems and grid-connected storage solutions, which are pivotal in meeting modern energy demands.
Frequently Addressed Queries
This detailed overview also answers common questions regarding Ormat's distinctive business model, technology integration, and strategic market approach, providing investors and industry observers with a thorough understanding of the company’s operational backbone and its role in the renewable energy landscape.
Ormat Technologies Inc. (NYSE: ORA) announced plans to publish its fourth quarter and full year 2022 financial results on February 22, 2023, after market close. The company will host a conference call on February 23, 2023, at 10:00 a.m. ET to discuss these results. Interested U.S. and Canadian participants can dial 1-888-770-2286, while international attendees can reach out at +1-646-960-0440, using access code 9122486. The call will also be available via a live webcast on the Investor Relations section of the company's website. A replay will be accessible shortly after the call's conclusion.
Ormat Technologies (NYSE: ORA) signed a Financing Agreement with PT Sarana Multi Infrastruktur and PT Medco Power Indonesia to develop the Ijen Geothermal Power Plant in East Java. The project will generate 34 MW, scheduled for completion in 2025. Medco Power holds a 51% stake while Ormat holds 49%. This partnership supports Indonesia's shift to renewable energy, contributing to the country's climate change goals. Ormat aims to expand its footprint in Indonesia, reinforcing its position in geothermal power and energy storage.
Ormat Technologies (NYSE: ORA) announced the pricing of an upsized secondary offering of 3,750,000 shares of common stock at $90.00 per share on behalf of ORIX Corporation. The offering is set to close on November 21, 2022, subject to customary conditions. Ormat is not selling any shares nor will it receive proceeds from this offering. BofA Securities and J.P. Morgan are acting as joint book-running managers. Underwriters have a 30-day option for an additional 562,500 shares.
Ormat Technologies (NYSE: ORA) announced a secondary offering of 3,500,000 shares of common stock on behalf of ORIX Corporation. Ormat will not sell any shares or receive proceeds from the offering. BofA Securities and J.P. Morgan act as joint book-running managers, with a 30-day option for underwriters to purchase an additional 525,000 shares. The offering is made under a shelf registration statement filed with the SEC, and participation is forthcoming based on the related prospectus. This move highlights Ormat's strategic positioning in the renewable energy sector.
Ormat Technologies, Inc. (NYSE: ORA) reported a 10.7% YoY increase in total revenues for Q3 2022, reaching $175.9 million, bolstered by growth in its Electricity segment, which rose 7.1%.
Operating income also saw an 8.1% increase to $38.9 million, while net income climbed 21.5% to $18.1 million. Despite a decrease in gross profit margin to 34.7%, driven by previous insurance proceeds, the outlook remains positive with a 150% increase in backlog and a secured $100 million contract in New Zealand and Indonesia. Guidance for total revenues in 2022 is between $720 million and $735 million.
Ormat Technologies (NYSE: ORA) will publish its Q3 2022 financial results on November 2, 2022, after market close. A conference call to discuss the results is scheduled for November 3, 2022, at 9:00 a.m. ET. Interested participants can join by calling designated numbers for the U.S., Canada, or internationally. The webcast will be available on the company's Investor Relations website. Ormat Technologies is recognized for its expertise in geothermal and energy storage, owning and operating approximately 3,200 MW of gross capacity across several countries.
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.
Ormat Technologies, Inc. (NYSE: ORA) reported a 15.1% year-over-year increase in total revenues for Q2 2022, totaling $169.1 million. The electricity segment grew 12.9%, while adjusted EBITDA rose 19.1% to $100.7 million. Operating income surged 34.9% to $38.6 million. Despite strong top-line growth, net income fell 13.6% to $11.3 million, impacted by foreign currency losses. The company reiterated its 2022 guidance, expecting revenues between $710 million and $735 million.
Ormat Technologies has launched the Casa Diablo-IV (CD4) geothermal power plant in California, which operates at 30 MW. CD4 will supply 7 MW to Silicon Valley Clean Energy and Central Coast Community Energy through 10-year agreements, and 16 MW to Southern California Public Power Authority over 25 years. This facility is significant as it's the first geothermal plant in the region for 30 years and utilizes Ormat's advanced binary technology to provide renewable energy with zero carbon emissions. With CD4, Ormat's total generating capacity now reaches 1,163 MW.
FAQ
What is the current stock price of Ormat Tech (ORA)?
What is the market cap of Ormat Tech (ORA)?
What are the primary business segments of Ormat Technologies?
How does Ormat generate its revenue?
What is the significance of the Ormat Energy Converter?
How does Ormat stand out from its competitors?
What technologies does Ormat utilize in its power plants?
In which markets does Ormat operate?
How does the Energy Storage segment complement Ormat’s traditional power generation?
