U.S. sales boost Ormat earnings
Ormat Technologies, the Reno-based geothermal company, rode higher sales from its U.S. plants to earnings of $15.8 million in the third quarter.
Investors liked the news enough to push Ormat’s stock to its highest level in the past year, although it later retreated a couple of paces.
The company, which operates power plants and also sells geothermal equipment to other plant operators, said its revenues for the quarter totaled $79.5 million. A year earlier, Ormat earned $13.9 million on revenues of $77.8 million.
Dita Bronicki, Ormat’s chief executive officer, said the company produced and sold more power than it did a year ago particularly from facilities in California and also got a better price for the power it sold.
The company’s geothermal power plants include facilities in the Steamboat region at the south edge of Reno. It also operates plants in Guatemala, Kenya and Nicaragua.
Bronicki said, however, that Ormat’s sales of geothermal products dipped to $18.1 million in the third quarter compared with $21.4 million a year earlier. And she said profit margins remain fairly tight in the products segment the company recorded a 16.7 percent margin in the sector in the third quarter even though prices are going up across the industry.
Last month, Ormat raised $155 million in fresh capital through a stock offering. Bronicki said the company will use the money for acquisitions, exploration of geo-thermal prospects or the purchase of equipment.
Separately, the company said it will pay a dividend of 5 cents a share Dec. 12 to shareholders of record Nov. 28.
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