Ormat Technologies (NYSE: ORA) reported Q1 EPS of $0.48, $0.11 worse than the analyst estimate of $0.59. Revenue for the quarter came in at $184 million versus the consensus estimate of $176.72 million.

FIRST QUARTER 2018 FINANCIAL HIGHLIGHTS AND RECENT DEVELOPMENTS:

• Total revenues of $184.0 million, down 3.1% compared to the first quarter of 2017;
• Electricity segment revenues of $132.5 million, up 14.4% compared to the first quarter of 2017;
• Electricity generation increased 6.7%, compared to the first quarter of 2017, from 1.43 million MWh to 1.52 million MWh;
• Product segment revenues of $48.7 million, down 34.3% compared to the first quarter of 2017;
• Product segment backlog increased 15.6% to $281.0 million as of May 7, 20183;
• Other revenue, representing the contribution of Ormat’s energy storage initiatives, were $3.0 million in the quarter;
• Gross margin was 39.9% of total revenues compared to 39.2% in the first quarter of 2017, due to improved efficiency in the Electricity segment; Electricity segment gross margin increased to 44.5% from 43.0%;
• Net income attributable to the company's shareholders was $44.7 million, or $0.88 per diluted share, compared to $35.3 million, or $0.70 per diluted share, in the first quarter of 2017;
• Adjusted net income attributable to the company's shareholders of $24.4 million, or $0.48 per diluted share, compared to $35.3 million, or $0.70 per diluted share, in the first quarter of 2017;
• Adjusted EBITDA of $98.4 million, up 7.2% compared to $91.8 million in the first quarter of 2017;
• Declared a quarterly dividend of $0.10 per share for the first quarter of 2018;
• Closed a $100.0 million senior, unsecured loan to fund capital needs to support long-term growth plans.
• Ormat’s Viridity Energy Solutions, Inc., remains 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;
• Ormat 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;
• 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;
• On May 3, 2018, the Kilauea volcano located in close proximity to our 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 our business and results of operations

GUIDANCE

Mr. Angel added, “We update our 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. We expect 2018 Adjusted EBITDA between $368.0 million and $378.0 million for the full year. We expect annual Adjusted EBITDA attributable to minority interest to be approximately $28.0 million.”

For earnings history and earnings-related data on Ormat Technologies (ORA) click here.