Ormat Sells $7.5 Million Stake in Nicaraguan Geothermal ProjectStephan Nielsen
Ormat Technologies Inc., a U.S. renewable-energy developer, sold for $7.5 million its stake in Momotombo Power Company, a geothermal plant operator in Nicaragua, to an undisclosed buyer.
The sum amounts to the earnings before interest, taxes, depreciation and amortization the plant will generate through the remainder of its concession contract which will terminate in about a year, Reno, Nevada-based Ormat Technologies said today in a statement.
The 22-megawatt plant sells power to two utilities under a 15-year contract, according to the statement. The company expects to record a capital gain of about $2.5 million in the second quarter of 2013 from the sale.
“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,” Dita Bronicki, chief executive officer of Ormat Technologies, said in the statement.