Green Energy Makes Gains as Ormat Technologies' Net Income Increases 45%

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Researched by Industrial Info Resources (Sugar Land, Texas)--Geothermal and recovered energy power producer Ormat Technologies Incorporated (NYSE:ORA) (Reno, Nevada) recently reported the company's earnings for the 2009 fiscal year. The company performed quite well during the quarter, with net income increasing 45% year over year, rising from $10 million in 1Q08 to $14.5 million in 1Q09.

Ormat operates two business segments, the Electricity segment, which builds and operates power plants and sells electricity, and the Products segment, which manufactures equipment for geothermal and recovered energy projects. Both segments brought in increased revenue, with the Electricity segment bringing an additional $3.1 million of revenue, while revenue of the company's Products segment increased an impressive $27.4 million. Total revenues rose 44% year over year, from $69.4 million in 1Q08 to $99.9 million in 1Q09.

Most of the increased revenue in the Products segment comes from the signing of engineering, procurement and construction contracts for two projects in New Zealand and Nevada. The company expects this segment to continue growing through the year. In a company press release, CEO Dita Bronicki said, "Growth continued during the quarter with improvements in both our revenues and net income. Revenue from our Products segment accounted for a significant portion of this quarter's growth. Revenues from our Products segment are expected to continue to grow throughout the year with an expected increase of 20% to 30% compared to last year."

Industrial Info, as part of its North American and International Industrial databases, is currently monitoring approximately $560 million of Ormat Technologies' projects in the U.S. and Kenya. Ormat is in the process of completing construction of its 50-megawatt (MW) North Brawley Geothermal Power Plant in Brawley, California. Testing is currently under way, and the project is expected to go online in the third quarter of this year. Additionally, a 50-MW expansion of the plant is currently in the permitting phase, with construction tentatively scheduled to begin in early 2010.

Ormat currently owns approximately 505 MW of geothermal and recovered energy generating capacity, 377 MW of which is in the U.S. The company plans to add an additional 72-84 MW of generating capacity by the end of 2010 and another 151-168 MW beyond 2010. Ormat's backlog at the end of the quarter was approximately $153 million, and the company expects to spend about $200 million for construction, maintenance, equipment and upgrades in 2009.

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