The following is a summary of the Ormat Technologies, Inc. (ORA) Q4 2023 Earnings Call Transcript:
Financial Performance:
Ormat reported an increase of 13% in total revenues for 2023, amounting to $829.4 million, with Q4 2023 revenue growing by 17.4% year-over-year to $241.3 million.
Adjusted EBITDA for the full year increased by 10.6% versus the prior year to $481.7 million with Q4 EBITDA jumping 11.5% compared to Q4 2022.
2023 net income increased significantly, reaching $124.4 million or $2.08 per diluted share, up 88.9% and 77.8% compared to the previous year, with Q4 net income attributable to the company's stockholders doubling from the previous year to $35.7 million.
Revenue growth was fueled by new projects that came online in 2022 and the start of operations of multiple geothermal, solar PV, and energy storage projects.
The robust growth in the product segment, up by 87.3% to $133.8 million for the year, was primarily a result of new contracts reflected in the higher backlog.
Business Progress:
Ormat completed significant capacity expansion in 2023, adding 239 megawatts via development projects and acquisitions, and signed long-term PPAs for a total of 98 megawatts in the electricity segment and 55 megawatts in the energy storage segment.
The company completed the acquisition of geothermal and solar assets from Enel Green Power North America, which are expected to contribute immediately to revenue and EBITDA.
The gross margin for the Electricity segment is expected to increase by 1-2% in 2024 due to better operational performances and the contribution from newly acquired assets.
Ormat plans to spend about $340 million on the electricity segment and $187 million in storage assets during 2024.
The company aims to increase the total electricity portfolio generation to between 1450 and 1470 megawatts by the end of 2026, and the energy storage capacity to reach between 700 to 800 megawatts by the same year.
Ormat expects revenue to be between $860 million and $910 million in 2024 with an anticipated 10% increase in adjusted EBITDA.
More details: Ormat Technologies IR
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