News to Track: Ormat Technologies1 (NYSE:ORA)

 Ormat Technologies1 (NYSE:ORA) spotted trading -5.37% off 52-week high price. On the other end, the stock has been noted 42.02% away from the low price over the last 52-weeks. The stock changed -0.99% to recent value of $74.93. The stock transacted 146092 shares during most recent day however it has an average volume of 160.17K shares. The company has 51.50M of outstanding shares and 50.28M shares were floated in the market.  

 On Jan. 6, 2020, Ormat Technologies1 (NYSE:ORA) declared that its subsidiary, Puna Geothermal Venture (PGV), and Hawaiian Electric’s Hawaii Electric Light subsidiary have reached an agreement on an amended and restated power purchase agreement (PPA) for dispatchable geothermal power sold from Ormat’s Puna complex, located on the Big Island of Hawai’i.

The new PPA extends the term until 2052 with an increased contract capacity of 46MW and a fixed price of $70.00/MWh with no escalation, regardless of changes to fossil fuel pricing. The amended PPA was filed with the Public Utilities Commission (PUC) on December 31, 2019 for its review and approval, which is anticipated during 2020.

Ormat is planning to replace ten 25-year-old steam units with two new Ormat binary units and to upgrade the existing auxiliary equipment. This upgraded facility will utilize the same amount of geothermal resource that the existing 38 MW facility requires. The modern equipment, with increased efficiency, will increase the Puna complex generating capacity by 8 MW to a total of 46 MW and will significantly reduce the operating costs. The commercial operation date (COD) of the new plant is expected during the first half of 2022. The existing PPA remains in effect, with current terms, until the expansion is completed, and the new plant reaches its COD.

The 38 MW Puna power plant has been shut down since the volcanic eruption and we are on track to bring it to full capacity by the end of the second quarter of 2020.  Its earnings per share (EPS) expected to touch remained -11.10% for this year while earning per share for the next 5-years is expected to reach at 11.00%. ORA has a gross margin of 38.40% and an operating margin of 27.90% while its profit margin remained 12.60% for the last 12 months. 

 According to the most recent quarter its current ratio was 1.2 that represents company’s ability to meet its current financial obligations. The price moved ahead of -0.78% from the mean of 20 days, -1.42% from mean of 50 days SMA and performed 10.01% from mean of 200 days price. Company’s performance for the week was 0.24%, -0.98% for month and YTD performance remained 0.55%.

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