Ormat Technologies, Inc. has announced financial results for the fourth quarter and full year ended December 31, 2016.
Financial highlights for the full year:
- Total revenues of $662.6 million in 2016, an increase of 11.4% from 2015;
- Electricity segment revenues increased 16.1% to $436.3 million in 2016 from $375.9 million in 2015;
- Product segment revenues reached record levels of $226.3 million from $218.7 million in 2015 representing a 3.5% increase
Operational and business developments for the full year 2016 and subsequent to year end:
- Started construction to expand Olkaria III complex in Kenya by additional 10 MW and increase the complex capacity to 150 MW during 2018;
- Signed an agreement to acquire the business and assets of Viridity Energy, Inc. and enter the growing energy storage and demand response markets;
- Entered into a partnership transaction with a financial investor to efficiently monetize the federal tax incentives relating to five geothermal power plants located in eastern Nevada for an initial purchase price of $62.1 million and additional future installments totaling up to $21.0 million through 2022;
- Closed $50.0 million loan facility agreement with Deutsche Investitions-und Entwicklungsgesellschaft Mbh (DEG) to finance our investment in the 29MW plant 4 in the Olkaria III complex, which commenced operation in February 2016;
- Signed a $36 million engineering, procurement and construction (EPC) contract with Cyrq Energy, Inc. to provide one ORMAT® Energy Converter (OEC) at Cyrq's Soda Lake geothermal power project in northern Nevada;
- Closed private placement of $92.5 million senior secured notes to refinance the Don A. Campbell Phase I geothermal power project;
- Signed 25-year Power Purchase Agreement with Southern California Public Power Authority (SCPPA) to deliver electricity from the company's Ormesa geothermal complex in Imperial Valley, Calif. beginning November 30, 2017;
- Closed follow-on sale of 36.75% equity interest to Northleaf for $44.2 million to monetize the second phase of the Don A. Campbell geothermal power plant;
- Raised $204 million of senior unsecured bonds at an average cost of 4.2%; Proceeds, together with other corporate funds, refinanced $250 million of high cost debt;
- Closed the acquisition of the Bouillante Geothermal Power Plant on the Island of Guadeloupe;
- Secured $36.0 million Supply & EPC Contracts for a geothermal power plant in New Zealand; and
- Signed an agreement to jointly build, own, and operate the Rabbit Hill Energy Storage Project located in Georgetown, Texas which moves the company, for the first time, into the energy storage arena.