Ormat Technologies, Inc. (ORA) has reported 22.80 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $28.23 million, or $0.56 a share in the quarter, compared with $22.99 million, or $0.46 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $28.20 million, or $0.56 a share compared with $23 million or $0.46 a share, a year ago. Revenue during the quarter went down marginally by 2.66 percent to $166.52 million from $171.07 million in the previous year period. Gross margin for the quarter expanded 253 basis points over the previous year period to 40.02 percent. Total expenses were 69.24 percent of quarterly revenues, down from 71.31 percent for the same period last year. This has led to an improvement of 207 basis points in operating margin to 30.76 percent.
Operating income for the quarter was $51.23 million, compared with $49.09 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $76.94 million compared with $79.08 million in the prior year period. At the same time, adjusted EBITDA margin contracted 2 basis points in the quarter to 46.20 percent from 46.23 percent in the last year period.
"This was a strong ending to an excellent year for Ormat, as we delivered another year of record revenue and adjusted EBITDA with double-digit growth and strong execution on all our key metrics," commented Isaac Angel, chief executive officer. "The new capacity from the fourth plant at our Olkaria III complex and the contribution of the Bouillante geothermal power plant we acquired in 2016, together with the strong performance of the McGinness Hills and Don A. Campbell complexes which came on line during 2015, increased our electricity segment full year revenues and significantly improved our gross profits. The strength of our electricity and our products segment outperformed our estimates. Our efforts to reduce costs and shorten the delivery lead time enabled us to reap the benefits also in the Products segment where we successfully secured new contracts that supported record revenues in 2016 and robust backlog for 2017. During the fourth quarter we finalized several transactions and raised approximately $200 million net that will reduce our overall cost of debt, strengthen our balance sheet and improve our cash position to facilitate our growth plans."
Ormat Technologies forecasts revenue to be in the range of $680 million to $700 million for fiscal year 2017.
Working capital increases sharplyOrmat Technologies, Inc. has recorded an increase in the working capital over the last year. It stood at $283.58 million as at Dec. 31, 2016, up 51.94 percent or $96.94 million from $186.64 million on Dec. 31, 2015. Current ratio was at 2.50 as on Dec. 31, 2016, up from 1.99 on Dec. 31, 2015. Days sales outstanding went up to 27 days for the quarter compared with 17 days for the same period last year.
Days inventory outstanding has decreased to 6 days for the quarter compared with 8 days for the previous year period.
Debt moves up marginally
Ormat Technologies, Inc. has witnessed an increase in total debt over the last one year. It stood at $938.84 million as on Dec. 31, 2016, up 4.15 percent or $37.44 million from $901.40 million on Dec. 31, 2015. Total debt was 38.14 percent of total assets as on Dec. 31, 2016, compared with 39.31 percent on Dec. 31, 2015. Debt to equity ratio was at 0.80 as on Dec. 31, 2016, down from 0.83 as on Dec. 31, 2015. Interest coverage ratio improved to 3.24 for the quarter from 2.71 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
