RENO, Nev., May 23, 2014 (GLOBE NEWSWIRE) -- Ormat Technologies, Inc. (NYSE:ORA) announced today that the Sarulla consortium fulfilled all conditions precedent and reached financial closing allowing the first drawdown under the $1.17 billion financing agreement for the 330 MW project in Indonesia.
In connection with the financial closing, the Company will add $254.0 million to its product backlog related to the Ormat Energy Converters it will supply to the plant. With this addition, Ormat's backlog increases to $375 million, up from $120 million as of May 8, 2014 (including revenues for the period between April 1, 2014 and today). The Company expects begin recognizing revenues from this contract in the second half of 2014.
The Japan Bank for International Cooperation, the Asian Development Bank and six commercial banks provided the Sarulla project financing, which was announced on March 28, 2014. Ormat holds a 12.75% equity stake in the project, with other equity participants being Medco, Itochu and Kyushu.
Dita Bronicki, chief executive officer of Ormat Technologies, said, "We are delighted to finally get to the final stage of development of this landmark project and move to the construction phase. The fact that Ormat will be supplying equipment to what will be the largest geothermal power plant to date is a testament to the superiority of our technology. We are happy to be able to report a record backlog for our product segment, and more importantly, a backlog with a visibility that provides a base level of products sale for the next 3 years."
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 77 U.S. patents, Ormat's power solutions have been refined and perfected under the most grueling environmental conditions. Ormat has 480 employees in the United States and about 640 overseas. Ormat's flexible, modular solutions for geothermal power and REG are ideal for the vast range of resource characteristics. The company has engineered, manufactured and constructed power plants, which it currently owns or has supplied to utilities and developers worldwide, totaling over 1,750 MW of gross capacity. Ormat's current generating portfolio of 626 MW (net) is spread globally 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 to Ormat'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 in Ormat Technologies, Inc.'s Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 28, 2014.
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.
CONTACT: Ormat Technologies Contact: Dita Bronicki CEO 775-356-9029 email@example.com Investor Relations Contact: Rob Fink/Brad Nelson KCSA Strategic Communications 212-896-1206 (Fink) /212-896-1249 (Nelson) firstname.lastname@example.org / email@example.com
Source:Ormat Technologies, Inc.