Ormat Accelerates the Handover of the Momotombo Power Plant
The company received $7.5 million in lieu of unrealized EBITDA and expects to
record approximately $2.5 million in capital gain
RENO, Nev., June 3, 2013
RENO, Nev., June 3, 2013 /PRNewswire/ -- Ormat Technologies, Inc. (NYSE: ORA)
announced today that Ormat Holding Corp., the Company's wholly owned
subsidiary, has sold its stake in the Momotombo Power Company (MPC), the
operator of the Momotombo geothermal power plant in Nicaragua, to a private
company for $7.5 million, approximately one year before the scheduled
termination of the concession arrangement with the Nicaraguan owner.
The 22MW power plant that the company operates under a concession since 1999
sells geothermal power to two off takers, DISNORTE and DISSUR, under a 15-year
contract. The $7.5 million consideration represents a prepayment of the
expected EBITDA of the plant through the scheduled expiration of the contract.
As a result of the sale, the Company expects to record a capital gain of
approximately $2.5 million in the second quarter of 2013.
"With the expected expiration of the concession and off take agreements and
the determination that it is unlikely to extend the concession, we concluded
that selling our stake in the plant early, maximizes the value of the asset.
We will continue to prudently manage our capital and deploy resources to
maximize shareholder value," said Dita Bronicki, Chief Executive Officer of
About Ormat Technologies
With over four decades of experience, Ormat Technologies, Inc. is a leading
geothermal company and the only vertically integrated company solely engaged
in geothermal and recovered energy generation (REG). The company owns,
operates, designs, manufactures and sells geothermal and REG power plants
primarily based on the Ormat Energy Converter – a power generation unit that
converts low-, medium- and high-temperature heat into electricity. With over
82 U.S. patents, Ormat's power solutions have been refined and perfected under
the most grueling environmental conditions. Ormat's flexible, modular
solutions for geothermal power and REG are ideal for the vast range of
resource characteristics. The company has engineered and built power plants,
which it currently owns or has supplied to utilities and developers worldwide,
totaling approximately 1600 MW of gross capacity. Ormat's current generating
portfolio totals 589 MW (net) in the U.S., Guatemala and Kenya.
Ormat's Safe Harbor Statement
Information provided in this press release may contain statements relating to
current expectations, estimates, forecasts and projections about future events
that are "forward-looking statements" as defined in the Private Securities
Litigation Reform Act of 1995. These forward-looking statements generally
relate toOrmat's plans, objectives and expectations for future operations and
are based upon its management's current estimates and projections of future
results or trends. Actual future results may differ materially from those
projected as a result of certain risks and uncertainties. For a discussion of
such risks and uncertainties, see "Risk Factors" as described inOrmat
Technologies, Inc.'s Annual Report on Form 10-K filed with theSecurities and
Exchange CommissiononMarch 11, 2013.
These forward-looking statements are made only as of the date hereof, and we
undertake no obligation to update or revise the forward-looking statements,
whether as a result of new information, future events or otherwise.
Ormat Technologies Contact: Investor Relations Contact:
Dita Bronicki Todd Fromer/Rob Fink
CEO KCSA Strategic Communications
775-356-9029 212-896-1215(Todd)/212-896-1206 (Rob)
email@example.com firstname.lastname@example.org / email@example.com
SOURCE Ormat Technologies, Inc.
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