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Ormat (ORA) Geothermal Plant to Add $15M Yearly to Revenues
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Ormat Technologies Inc. (ORA - Free Report) recently made an announcement that the Tungsten Mountain geothermal power plant has started commercial operations on Dec 1, 2017.
The Tungsten Mountain geothermal power plant, located in Churchill County, NV, is making use of the largest and latest Ormat Energy Converter (“OEC”). It is expected to generate an average net output of approximately 24 megawatt (MW).
Thanks to its new technology, the company will need only one turbine to produce aforementioned volume of electricity. Before introduction of this new technology, the company would have needed two turbines, consequently increasing the operating costs of the plant.
Other Details
The power generated from the Tungsten Mountain project will be sold under a 26-year Ormat Northern Nevada Geothermal Portfolio Power Purchase Agreement (“PPA”) with the Southern California Public Power Authority (“SCPPA”).
The power generated from the plant operations is anticipated to generate nearly $15 million in average annual revenues for Ormat.
Ormat Delivering Geothermal Efficiency
Ormat continues to advance the geothermal technology and help its clients to maximize returns from their geothermal resources both domestically and internationally. Notably, the company announced an Engineering, Procurement and Construction contract worth $50 million, in New Zealand, with TOP ENERGY Ltd, in December.(Read more: Ormat Signs $50M Deal to Extend Ngawha Geothermal Project)
Apart from the aforementioned project, the company’s Dixie Meadows project is also expected to begin operations by the end of 2017. Internationally, the company is progressing steadily with repowering projects in Kenya and Guadeloupe, both expected to begin operations by the end of 2018 or early 2019. The company’s order backlog, as of Aug 3, 2017 was pegged at $192 million.
Ormat’s latest turbine design that is being utilized for power generation is anticipated to extend its current operating portfolio to 800 MW, up from 727 MW, spread across in the United States, Guatemala, Guadeloupe, Indonesia and Kenya.
Further, geothermal energy is currently gaining popularity as a renewable source of power due to easy availability and flexibility compared with wind and solar energy sources.
Our View
Ormat is currently making steady progress with the help of the geothermal projects that have already come online in 2017. This can be evidenced by its consistent performance, resulting in an average positive surprise of 8.18% in the last four quarters.
The current backlog of orders will help the company achieve long term earnings growth of 13.5%. This clearly signifies that this alternate energy company enjoys a favorable spot in investors book among other alternate energy stocks like FuelCell Energy, Inc. (FCEL - Free Report) and NextEra Energy Partners, LP (NEP - Free Report) .
Price Movement
Shares of Ormat have outperformed the industry in the last one year. The company’s shares gained 20.7%, compared with the industry’s growth of 19%.
SolarEdge delivered an average surprise of 24% in the trailing four quarters. Its 2017 estimates have risen by 14.6% to $2.20 per share in the last 60 days.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Image: Bigstock
Ormat (ORA) Geothermal Plant to Add $15M Yearly to Revenues
Ormat Technologies Inc. (ORA - Free Report) recently made an announcement that the Tungsten Mountain geothermal power plant has started commercial operations on Dec 1, 2017.
The Tungsten Mountain geothermal power plant, located in Churchill County, NV, is making use of the largest and latest Ormat Energy Converter (“OEC”). It is expected to generate an average net output of approximately 24 megawatt (MW).
Thanks to its new technology, the company will need only one turbine to produce aforementioned volume of electricity. Before introduction of this new technology, the company would have needed two turbines, consequently increasing the operating costs of the plant.
Other Details
The power generated from the Tungsten Mountain project will be sold under a 26-year Ormat Northern Nevada Geothermal Portfolio Power Purchase Agreement (“PPA”) with the Southern California Public Power Authority (“SCPPA”).
The power generated from the plant operations is anticipated to generate nearly $15 million in average annual revenues for Ormat.
Ormat Delivering Geothermal Efficiency
Ormat continues to advance the geothermal technology and help its clients to maximize returns from their geothermal resources both domestically and internationally. Notably, the company announced an Engineering, Procurement and Construction contract worth $50 million, in New Zealand, with TOP ENERGY Ltd, in December.(Read more: Ormat Signs $50M Deal to Extend Ngawha Geothermal Project)
Apart from the aforementioned project, the company’s Dixie Meadows project is also expected to begin operations by the end of 2017. Internationally, the company is progressing steadily with repowering projects in Kenya and Guadeloupe, both expected to begin operations by the end of 2018 or early 2019. The company’s order backlog, as of Aug 3, 2017 was pegged at $192 million.
Ormat’s latest turbine design that is being utilized for power generation is anticipated to extend its current operating portfolio to 800 MW, up from 727 MW, spread across in the United States, Guatemala, Guadeloupe, Indonesia and Kenya.
Further, geothermal energy is currently gaining popularity as a renewable source of power due to easy availability and flexibility compared with wind and solar energy sources.
Our View
Ormat is currently making steady progress with the help of the geothermal projects that have already come online in 2017. This can be evidenced by its consistent performance, resulting in an average positive surprise of 8.18% in the last four quarters.
The current backlog of orders will help the company achieve long term earnings growth of 13.5%. This clearly signifies that this alternate energy company enjoys a favorable spot in investors book among other alternate energy stocks like FuelCell Energy, Inc. (FCEL - Free Report) and NextEra Energy Partners, LP (NEP - Free Report) .
Price Movement
Shares of Ormat have outperformed the industry in the last one year. The company’s shares gained 20.7%, compared with the industry’s growth of 19%.
Zacks Rank & Key Picks
Ormat currently carries a Zacks Rank #3 (Hold). A better-ranked stocks from the broader sector is SolarEdge Technologies, Inc. (SEDG - Free Report) , which sports a Zacks Rank #1 (Strong Buy). You cansee the complete list of today’s Zacks Rank #1 stocks here.
SolarEdge delivered an average surprise of 24% in the trailing four quarters. Its 2017 estimates have risen by 14.6% to $2.20 per share in the last 60 days.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
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