RENO, Nev., Jan. 30, 2012 /PRNewswire/ -- Ormat Technologies,
Inc. (NYSE: ORA) announced today that it is revising its previously
issued expectations pertaining to the impact of recently finalized
mandatory short-run-avoided-cost ("SRAC") pricing applicable to
power purchase agreements ("PPAs") for the Heber 1 and 2 power plants, the Ormesa complex
and the Mammoth complex in California (the "SARC PPAs") may have on its
revenues in 2012 and 2013.
(Logo:
http://photos.prnewswire.com/prnh/20040422/LATH066LOGO)
When originally announced, the impact of this settlement was
expected to reduce revenues by $9.5
million in 2012 and $6.5
million in 2013. However, as a result of the
significant decrease in natural gas price forecasts for 2012 and
2013 and the delay of California's
greenhouse gas ("GHG") cap-and-trade program that is now scheduled
to begin in 2013, each of which is uncertain and subject to change,
it is now expected that the new SRAC price formulas will reduce
revenues in 2012 and 2013 by an estimated $24.8 million and $24.9
million, respectively. Such reduction represents
approximately 5.9% of the company's forecasted 2011 total revenues.
Despite the estimated impact, Ormat's total revenues in 2012 are
expected to equal or exceed total revenues for 2011. Official
financial guidance for 2012 will be provided in the company's 2011
fourth quarter and year-end earnings release which is scheduled for
February 22, 2012.
In addition, to mitigate part of the reduction in revenues from
these facilities, the company may seek to amend one or more of its
PPAs, among other things, to provide for fixed price terms.
There is no assurance that the company will be able to amend any of
these PPAs on terms that are attractive to it, or at all.
Commenting on the revised guidance, Dita Bronicki, CEO of Ormat
Technologies, said: "Revenues from new projects and our strong
product segment pipeline should offset the impact of the current
natural gas prices. While there are expectations that natural gas
prices may increase due to various market conditions, such as LNG
exports, we will continue to seek alternatives to the variable
pricing terms for our SRAC PPAs."
About Ormat Technologies
Ormat Technologies, Inc. is the only vertically integrated
company primarily engaged in the geothermal and recovered energy
power business. The company designs, develops, owns and operates
geothermal and recovered energy-based power plants around the
world. Additionally, the company designs, manufactures and sells
geothermal and recovered energy power units and other
power-generating equipment, and provides related services. The
company has more than four decades of experience in the development
of environmentally sound power, primarily in geothermal and
recovered-energy generation. Ormat products and systems are covered
by 80 U.S. patents. Ormat has engineered and built power plants,
that it currently owns or has supplied to utilities and developers
worldwide 1410 MW of gross capacity. Ormat's current generating
portfolio includes the following geothermal and recovered
energy-based power plants: in the United
States - Brady, Brawley,
Heber, Jersey Valley, Mammoth,
Ormesa, Puna, Steamboat, OREG 1, OREG 2, OREG 3 and OREG 4; in
Guatemala - Zunil and Amatitlan;
in Kenya - Olkaria III; and, in
Nicaragua - Momotombo.
Ormat's Safe Harbor Statement
Information provided in this press release contains statements
relating to current expectations, estimates, forecasts and
projections about future events that are "forward-looking
statements" as defined in the Private Securities Litigation Reform
Act of 1995. These forward-looking statements include the estimated
impact of SRAC pricing on our revenues for 2012 and 2013 and the
various assumptions underlying those estimates, including future
natural gas prices, the date of implementation of California's GHG program, the revenues that
the affected plants otherwise might generate during these years,
any possible amendments of one or more of the PPAs for these plants
and other uncertainties associated with the future operation of
these plants. Actual future results may differ materially
from those projected as a result of any of these factors and other
risks and uncertainties. For a discussion of such risks and
uncertainties, see "Risk Factors" as described in Ormat
Technologies, Inc.'s Annual Report on Form 10-K filed with the
Securities and Exchange Commission on February 28, 2011.
These forward-looking statements are made only as of the date
hereof, and we undertake no obligation to update or revise the
forward-looking statements, whether as a result of new information,
future events or otherwise.
Ormat
Technologies Contact:
|
Investor
Relations Contact:
|
Dita
Bronicki
|
Todd
Fromer/ Rob Fink
|
CEO
|
KCSA
Strategic Communications
|
775-356-9029
|
212-896-1215 (Todd) /212-896-1206 (Rob)
|
dbronicki@ormat.com
|
tfromer@kcsa.com / rfink@kcsa.com
|
SOURCE Ormat Technologies, Inc.