Ormat Technologies, Inc. (NYSE: ORA) stock crashed over 8.5% on May 8th, 2018. The adjusted net income attributable to the company’s shareholders fell to $24.4 million, against $35.3 million, in the first quarter of 2017. Meanwhile, ORA for the first quarter of FY 18, has reported the adjusted earnings per share of $0.48, missing the analysts’ estimates for the adjusted earnings per share of $0.59. The company had reported 3.1% fall in the adjusted revenue growth to $184 million in the first quarter of FY 18.
Moreover, in the first quarter of FY 18, General and administrative expenses were $13.8 million, or 7.5% of total revenues, compared to $9.9 million, or 5.2% of total revenues, for the three months ended March 31, 2017. The increase was primarily due to general and administrative expenses from Viridity which was acquired on March 15, 2017; and an increase of approximately $2.0 million in costs associated with the tax material weakness that was identified in the fourth quarter of 2017 and the additional work and controls to compensate for that material weakness. The Income tax benefit for the first quarter is of $2.1 million against income tax provision of $10.9 million for the three months ended March 31, 2017.
On the other hand, the adjusted EBITDA grew 7.2% to $98.4 million, compared to $91.8 million in the first quarter of 2017. The company has declared a quarterly dividend of $0.10 per share for the first quarter of 2018. Further, ORA closed a $100.0 million senior, unsecured loan to fund capital needs to support long-term growth plans.
Ormat’s Viridity Energy Solutions, Inc., is on track to start construction of two 20MW/20MWh utility scale, in-front-of-the-meter battery energy storage systems (BESS) located in Plumsted Township and Alpha, New Jersey.
Furthermore, ORA has closed the acquisition of U.S. Geothermal, Inc. (USG) which became an indirect subsidiary of Ormat and Ormat indirectly acquired the interests held by USG and its subsidiaries in, among other assets, three power plants at Neal Hot Springs, Oregon, San Emidio, Nevada and Raft River, Idaho with a total net generating capacity of approximately 38 MW, which will be fully integrated into Ormat electricity segment. The company has signed a finance agreement with the Overseas Private Investment Corporation (OPIC), United States government’s development finance institution, to provide an approximately $125.0 million loan (on a non-recourse basis) for the 35 MW Platanares geothermal power plant in Honduras.
Additionally, On May 3nd, 2018, the Kilauea volcano located in close proximity to the Puna geothermal power plant in Hawaii erupted. Necessary steps to secure the Puna facilities, including, among others, taking electricity generation offline, were taken. The impact of the volcanic eruption is still under assessment and may have a material adverse impact on the business and results of operations
Meanwhile, ORA has updated the full-year 2018 guidance to include the financial contribution of U.S. Geothermal’s assets and now expect total revenues between $711.0 million and $735.0 million with electricity segment revenues between $523.0 million and $533.0 million and product segment revenues between $180.0 million and $190.0 million. Revenues from energy storage and demand response activity are expected to be between $8.0 million and $12.0 million. Further, the company expects 2018 Adjusted EBITDA to be between $368.0 million and $378.0 million for the full year 2018. The company expects annual Adjusted EBITDA attributable to minority interest to be approximately $28.0 million