Ormat Technologies' Q4 2024: Discrepancies in Generation Expectations, PPA Pricing, and Project Timelines

These are the key contradictions discussed in Ormat Technologies' latest 2024Q4 earnings call, specifically including: Electricity Segment Generation Expectations, Geothermal Segment PPA Prices, Geothermal Project Timing and Capacity, Energy Storage Margin Outlook, and PPA Contract Renewal Strategy:



Revenue and Segment Performance:
- Ormat Technologies reported total revenues of $879.7 million for 2024, marking a 6.1% year-over-year increase.
- Revenue growth was driven by growth in all three business segments, particularly due to the strategic expansion in the Electricity segment from the acquisition of Enel assets.

Adjusted EBITDA and Profitability:
- Ormat's adjusted EBITDA for 2024 was $550.5 million, an impressive 14.3% improvement compared to 2023.
- This increase was primarily due to the contributions of new projects in both the Electricity and Storage segments, improved performance at the Olkaria complex, and improved pricing at the Puna power plant.

Product Segment Recovery and Backlog:
- Ormat's Product segment backlog reached a record of $340 million, up 124% compared to Q4 2023.
- This significant growth was largely driven by the signing of a large EPC contract in New Zealand and the Dominica BOT project, which will contribute to revenues over the next two years.

Energy Storage Segment Expansion:
- Energy Storage segment revenues increased by 56.7% in Q4 2024 and by 30.6% for the full year to $37.7 million.
- This growth was driven by the commencement of operations of new energy storage facilities and the signing of tolling agreements in Texas and California, which transitioned the segment towards more consistent profitability.