Ormat Technologies Inc., a U.S. developer of geothermal energy, dropped the most in more than five months after saying that revenue will decline by almost $25 million in 2012 and 2013.
Ormat slumped 7.3 percent to $16.25 at the close in New York, the most since Aug. 8. Revenue for this year will decline by an estimated $24.8 million after forecasted natural-gas prices used in several power-purchase agreements were cut, the Reno, Nevada-based company said in a statement yesterday. Revenue next year is estimated to fall by $24.9 million.
The 2012 cut “represents approximately 5.9 percent of the company’s forecasted 2011 total revenues,” the company said in the statement. Ormat expected sales of $415 million to $425 million for the year, according to a statement in November.
The company will provide guidance for 2012 when it issues its 2011 fourth-quarter earnings report, scheduled for Feb. 22.
Ormat’s contracts for its Heber 1 and 2, Ormesa and Mammoth power plants in California were affected by a decrease in gas-price forecasts and the delay of the state’s greenhouse-gas cap-and-trade program, which is now expected to begin in 2013, according to the statement.
Ormat is a unit of Yavne, Israel-based Ormat Industries Ltd., which fell 4 percent to close at 17.25 shekels in Tel Aviv today, its lowest price since October 2004.