Ormat Technologies Signs 25-Year Power Purchase Agreement with Dominica Electricity Services
December 19, 2023
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Ormat Technologies ($NYSE:ORA), Inc. is a leading global provider of renewable and reliable energy solutions. The company develops, designs, builds, owns, and operates geothermal and recovered energy-based power plants around the world. Recently, Ormat Technologies has signed a 25-year power purchase agreement with Dominica Electricity Services, a utility company in the Caribbean. This is part of Ormat’s ongoing commitment to the development and utilization of renewable energy sources. The agreement will be beneficial for both parties and will help Dominica Electricity Services meet its goal of providing reliable, sustainable, and renewable energy to all its customers on the island.
In addition, Ormat Technologies will be able to further expand its footprint in the Caribbean region and continue its mission of providing clean, reliable energy solutions to communities around the world. It highlights Ormat’s dedication to providing renewable energy solutions and further cements their position as one of the world’s leading providers of renewable energy solutions.
Share Price
This agreement marks the building of a new geothermal power plant in the Caribbean country of Dominica. Under the agreement, ORMAT TECHNOLOGIES will provide up to 10 megawatts (MW) of electricity to DES. As a result of this new agreement, ORMAT TECHNOLOGIES stock opened at $69.4 and closed at $69.6, up by 1.3% from last closing price of 68.7. ORMAT TECHNOLOGIES’ geothermal power plant is also expected to reduce their reliance on imported fossil fuels, providing a more sustainable and cost-effective energy solution. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Ormat Technologies. More…
| Total Revenues | Net Income | Net Margin |
| 793.57 | 106.71 | 17.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Ormat Technologies. More…
| Operations | Investing | Financing |
| 296.19 | -523.41 | 126.27 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Ormat Technologies. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 5.01k | 2.6k | 37.76 |
Key Ratios Snapshot
Some of the financial key ratios for Ormat Technologies are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 3.4% | -2.9% | 25.2% |
| FCF Margin | ROE | ROA |
| -34.1% | 5.5% | 2.5% |
Analysis
GoodWhale conducted an analysis of ORMAT TECHNOLOGIES‘ financials, and the results showed that it was strong in dividend, medium in asset, profitability and weak in growth. Based on these results, we classified ORMAT TECHNOLOGIES as a ‘cow’, a type of company that has the track record of paying out consistent and sustainable dividends. We believe this type of company would be attractive to investors who are looking for solid returns without taking on too much risk. Furthermore, ORMAT TECHNOLOGIES has an intermediate health score of 4/10 with regard to its cashflows and debt. Therefore, we believe ORMAT TECHNOLOGIES is in a strong position to survive any crisis with a minimal risk of bankruptcy. More…
Peers
It operates in more than 30 countries and has a strong presence in the US, Europe, and Asia. The company has a diversified portfolio of renewable energy assets and is constantly innovating to stay ahead of its competitors. Some of its major competitors are EDP Renovaveis SA, Northland Power Inc, and Atlantica Sustainable Infrastructure PLC.
– EDP Renovaveis SA ($LTS:0ML1)
EDP Renovaveis SA is a leading renewable energy company in Europe. The company has a market cap of 19.36B as of 2022 and a ROE of 10.17%. The company has a strong presence in the wind and solar energy markets and is one of the largest renewable energy companies in the world. The company has a strong focus on renewable energy and is committed to providing clean, sustainable energy for the future.
– Northland Power Inc ($TSX:NPI)
Northland Power Inc is a Canadian power producer that owns and operates a diversified portfolio of power-generating facilities. The company has a market capitalization of 8.84 billion as of 2022 and a return on equity of 23.88%. Northland Power’s power-generating facilities are located in Canada, the United States, and Germany. The company’s primary business is the generation and sale of electricity to utilities and other large customers.
– Atlantica Sustainable Infrastructure PLC ($NASDAQ:AY)
As of 2022, Atlantica Sustainable Infrastructure PLC has a market cap of 2.93B and a ROE of 10.83%. The company is involved in the development, acquisition, and operation of sustainable infrastructure projects, including solar, wind, and water assets.
Summary
Ormat Technologies recently announced a 25-year Power Purchase Agreement (PPA) with Dominica Electricity Services. The agreement includes the sale of electricity from Ormat’s Puna Geothermal Power Plant, located in the Caribbean. This agreement is a major step for Ormat and could be a great opportunity for investors. It will provide Ormat with a steady stream of revenue for the next 25 years, as well as establishing their presence in the Caribbean energy market. With this agreement, investors can expect increased exposure for Ormat and potential long-term growth in their investments.
Additionally, Ormat is now in a strong position to expand their operations into other regions of the Caribbean and beyond.
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