Geothermal Leader Ormat Technologies (ORA) Surges On Great Quarter

Ormat Technologies (ORA), the geothermal 800lb gorilla, reported great earnings results this morning beating EPS estimates by .07/share and 33% over the year ago quarter.  Revenues surged 44% over the year ago quarter and beat estimates by $11 million at $99.9 million.  This was a very impressive quarter.  I’ve been wanting to get in on a pull back but it has yet to do so. The stock has now nearly doubled off the March low around 22.  The quarter was driven by growth from engineering, procurement and engineering contracts for two geothermal projects.

Commenting on the quarter’s results, Dita Bronicki, Chief Executive Officer of Ormat, stated: “Growth continued during the quarter with improvements in both our revenues and net income. Revenue from our Products Segment accounted for a significant portion of this quarter’s growth. Revenues from our Products Segment are expected to continue to grow throughout the year with an expected increase of 20% to 30% compared to last year. An increase in generation in our Electricity Segment compared to last year also contributed to our record results but its impact was not fully reflected, primarily because of lower energy rates at our Puna facility, the only facility which is sensitive to oil prices. While North Brawley has not yet reached commercial operation, the 35 MW expansion of our Olkaria III power plant in Kenya, is operating as planned.

Looking ahead to revenues for the full year 2009, the company expects electricity revenues to be between $265 – $275 million due to delays at North Brawley.  It expects $110 – $120 in revenues for its Products Segment.

The stock is up about 8% today.

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