Ormat Provides an Update on the Puna Power Plant in Hawaii Following the Kilauea Volcanic Eruption
31 Maio 2018 - 8:36AM
Ormat Technologies Inc. (NYSE:ORA) provides an update that on May
30, 2018, due to the approaching lava, the substation of the Puna
complex and an adjacent warehouse that stored a drilling rig were
burned. Both items are expected to be covered by the Company’s
insurance policies. Due to the long lead time of constructing a new
substation and the extent of the damage to HELCO’s transmission
lines, the Company cannot asses when the Puna complex will be able
to resume operation and deliver power to the grid.
The approaching lava also covered and blocked
the main access road to the power plant. Alternative access road is
currently open.
As announced on May 28, the approaching lava
covered the wellheads of two geothermal wells. The Company cannot
assess at this stage the extent of the damage to the future
functionality of these wells. As of today, the lava did not cover
any additional wells. The lava continues to flow and may reach
other wells and areas of the Puna facility.
The 38 MW Puna power plant, which is operated by
Puna Geothermal Venture GP (PGV), reflects approximately 4.5% of
Ormat’s total generating capacity. In 2017, PGV accounted for an
aggregate of approximately $11 million of net income and
approximately $20 million of Adjusted EBITDA annually. Ormat holds
a 63.25% interest in PGV and the balance is held by its partner, an
affiliate of Northleaf Capital Partners.
Ormat has property and business interruption
insurance policies that include insurance coverage in a combined
amount of up to $100 million in the event of volcanic eruptions and
earthquake. The Company is working with its insurance broker and
has provided notice to its insurance carriers regarding the
situation at Puna. As of March 31, 2018, the Puna complex
represented approximately $90 million of net assets on the
Company’s balance sheet based on a total asset value of
approximately $109 million plus approximately $30 million of
prepaid expenses less deferred lease income of approximately $49
million. In addition, PGV is required to pay an aggregate of
approximately $22 million of future lease payments until 2027.
Any significant physical damage to, or extended
shut-down of, the Puna facilities could have a material adverse
impact on the power plant's electricity generation and
availability, which in turn could have an adverse impact on our
business and results of operations.
ABOUT ORMAT TECHNOLOGIES
With over five decades of experience, Ormat
Technologies, Inc. is a leading geothermal Company and the only
vertically integrated Company engaged in geothermal and recovered
energy generation (REG), with the objective of becoming a leading
global provider of renewable energy. The Company owns, operates,
designs, manufactures and sells geothermal and REG power plants
primarily based on the Ormat Energy Converter – a power generation
unit that converts low-, medium- and high-temperature heat into
electricity. With 77 U.S. patents, Ormat’s power solutions have
been refined and perfected under the most grueling environmental
conditions. Ormat has 530 employees in the United States and 770
overseas. Ormat’s flexible, modular solutions for geothermal power
and REG are ideal for the vast range of resource characteristics.
The Company has engineered, manufactured and constructed power
plants, which it currently owns or has installed to utilities and
developers worldwide, totaling over 2,600 MW of gross capacity.
Ormat’s current 851 MW generating portfolio is spread globally in
the U.S., Guatemala, Guadeloupe, Honduras, Indonesia and Kenya. In
March 2017, Ormat expanded its operations to provide energy storage
and energy management solutions, by leveraging its core
capabilities and global presence as well as through its Viridity
Energy Solutions Inc. subsidiary, a Philadelphia-based Company with
nearly a decade of expertise and leadership in energy storage,
demand response and energy management.
ORMAT’S SAFE HARBOR STATEMENT
Information provided in this press release may
contain 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
generally relate to Ormat's plans, objectives and expectations for
future operations and are based upon its management's current
estimates and projections of future results or trends. Actual
future results may differ materially from those projected as a
result of certain risks and uncertainties. For a discussion of such
risks and uncertainties, see "Risk Factors" as described in Ormat
Technologies, Inc.'s Form 10-K filed with the SEC on March 16,
2018.
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: Smadar Lavi VP Corporate Finance and Head of
Investor Relations 775-356-9029 (ext. 65726) slavi@ormat.com |
Investor
Relations Agency Contact: Rob Fink Hayden - IR 646-415-8972
rob@haydenir.com |
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