Tuesday, May 8, 2018

USA, Hawaii: Statement by Ormat CEO on Puna Geothermal Venture

Ormat Technologies' (ORA) CEO Isaac Angel On Q1 2018 Results - Earnings Call Transcript (Seeking Alpha)

Isaac Angel, CEO - ‎Ormat Technologies, Inc.: On May 3, 2018, the Kilauea volcano located in close proximity to our Puna geothermal power plant in the Puna district of Hawaii’s Big Island erupted following a significant increase in seismic activity in the area in the recent weeks. We have taken steps to secure the Puna facilities including among others taking electricity generation offline, evacuated nonessential personnel from the power plant and we are in the progress of moving pentane [ph]to an off-site location.

We are still assessing the impact of this eruption on our Puna facilities. Any significant physical damage to the plant are extended shutdown of the Puna power plant could have an adverse impact on the electricity generation and availability, which in turn could have a material adverse impact in our revenues. We continue to monitor the condition of the Puna facilities, coordinate with HELCO, the offtaker and without other local authorities and are taking steps to both further secure the power plant and restore its operations as soon as it’s safe to do so.

As of today, there is no damage to the power plant; however, we don’t know yet the impact of the eruption on our production injection wells. We have a business interruption of property insurance coverage; however, this is an ongoing event and until it stabilize, we will not know the potential indemnification we can recover from the insurance company or if at all.

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