Notable Stock to Watch: Ormat Technologies, Inc. (NYSE:ORA)

Ormat Technologies, Inc. (NYSE:ORA) changed -0.09% to recent value of $63.99. The stock transacted 104511 shares during most recent day however it has an average volume of 158.75K shares. It spotted trading -0.39% off 52-week high price. On the other end, the stock has been noted 39.75% away from the low price over the last 52-weeks.

Ormat Technologies, Inc. (NYSE:ORA) announced that it has signed and closed a set of agreements to acquire from a Medco Power subsidiary 49% in the Ijen geothermal project company, which is holding the geothermal license to develop Ijen project in East Java. This acquisition further bolsters Ormat’s global portfolio, and particularly strengthens its position in Indonesia.

Under terms of the agreements, Ormat will acquire 49% of the shares of the Ijen geothermal project company and will commit to additional funding for the project exploration and development, subject to specific conditions.  A subsidiary of Medco Power will retain 51% ownership in the company. Ormat and Medco will develop the project jointly.

“We have established a tremendous relationship with Medco, including partnering on our Sarulla plant, and we are excited to extend this relationship to a second major project in Indonesia,” commented Isaac Angel, Chief Executive Officer. “As part of this partnership, Ormat holds a preferential right to supply equipment to the project, leveraging our expertise and increasing the opportunities for our product segment. Medco shall hold a preferential right to operate and manage the project after its commercial operation, in-line with Medco’s significant operation and maintenance experience.

 

Indonesia has significant volcanic geology that is reported to have a major part of the world’s potential geothermal resources, estimated at 28,000 megawatts. The government of Indonesia has announced plans to produce more than 9,000 MW of geothermal power by 2025, becoming the world’s leading geothermal energy producer. This would account for 5% of Indonesia’s total energy needs, creating significant opportunities for additional geothermal expansion.”

The Ijen project assets, whose final capacity will be determined after exploration, include a geothermal concession and 30-year PPA for up to 110 MW capacity. The project is ready for exploration and development with some slim holes already drilled and commercial operation is expected at the end of 2022.

ORA has a gross margin of 36.90% and an operating margin of 25.10% while its profit margin remained 7.40% for the last 12 months. 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%.

The company has 50.07M of outstanding shares and 49.9M shares were floated in the market. According to the most recent quarter its current ratio was 1.6 that represents company’s ability to meet its current financial obligations. The price moved ahead of 2.69% from the mean of 20 days, 5.71% from mean of 50 days SMA and performed 14.50% from mean of 200 days price. Company’s performance for the week was 2.81%, 5.84% for month and YTD performance remained 22.35%.

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