“Total revenues increased nearly 6% and electricity revenues increased more than 5%,” commented Isaac Angel, Chief Executive Officer. “This steady growth was achieved despite the recent shutdown of our operations at Puna and highlights the diversification we have built into the Ormat operating model and the strength of our overall portfolio of projects around the world. Now that the lava flow near Puna has ceased, we are working to bring that plant back online, and are confident that Ormat is well positioned for continued growth.”
Recent Developments:
- Ormat completed the closing of the first tranche under the previously announced finance agreement totaling up to $124.7 million for the 35 MW Platanares geothermal power plant in Honduras, with the Overseas Private Investment Corporation (“OPIC”), United States government’s development finance institution, as the sole lender. Following the closing, Ormat received a disbursement of $114.7 million representing the full amount of Tranche I of the OPIC non-recourse project finance loan that carries a fixed interest rate of 7.02% per annum with a maturity of approximately 14 years. The closing of the second tranche of up to $10 million is expected during the first half of 2019.
- In Puna, Hawaii, before the lava recently stopped flowing, the lava covered the wellheads of three geothermal wells, the substation of the Puna complex and an adjacent warehouse that stored a drilling rig. The Company is currently assessing the damages to the Puna facilities and continues to coordinate with Hawaii Electric Light Company and local authorities to bring the power plant back to operation. The Company is in the process of building access roads to the site, removing the plugs from the production wells and rebuilding the electrical substation. Management is in ongoing discussions with its insurance companies, working to secure a business interruption claim for the income loss from the shutdown.
- Ormat opted out of the Galena 2 PPA with NV Energy Inc., and reported a one-time $5 million termination fee, recorded in selling and marketing expenses, in the third quarter of 2018. In March 2019, Ormat will start selling power from Galena 2 under its existing Southern California Public Power Authority portfolio PPA at $75.5 per MWh replacing lower pricing under the Galena 2 PPA.
