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Green energy you can rely on
Amatitlan, Guatemala
Copyright © 2013 Ormat Technologies, Inc.
Ormat Technologies, Inc. November 2013
F66OTEC Q3 2013 11 14 13
Copyright © 2013 Ormat Technologies, Inc.
Disclaimer
Information provided during this presentation 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 the company’s plans, objectives and expectations for future operations,
and are based on 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, please see risk factors as described in the Annual Report on Form 10-K filed
with the securities and exchange commission on March 11,2013.
In addition, during this presentation, statements may be made that include a financial measure defined as non-GAAP financial
measures by the Securities and Exchange Commission, such as EBITDA and adjusted EBITDA. These measures may be
different from non-GAAP financial measures used by other companies. The presentation of this financial information is not
intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance
with GAAP.
Management of Ormat Technologies believes that EBITDA and adjusted EBITDA may provide meaningful supplemental
information regarding liquidity measurement that both management and investors benefit from referring to this non-GAAP
financial measures in assessing Ormat Technologies’ liquidity, and when planning and forecasting future periods. This non-
GAAP financial measures may also facilitate management’s internal comparison to the company’s historical liquidity.
Copyright © 2013 Ormat Technologies, Inc. All Rights Reserved. This document contains information proprietary to Ormat
Technologies, Inc. Reproduction in any form without prior written permission is strictly prohibited
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Copyright © 2013 Ormat Technologies, Inc.
Introduction to Ormat
Market leader with proven track record:
• Over four decades of experience
• Established renewable pure-play
• Technology leader with over 82 U.S. patents
• 595 MW of installed capacity in 17 complexes and power plants
• Power plants fully contracted with base load generation, yielding strong
cash flow
• Vertically integrated
• Strong backlog in the Products segment
• Over 500 employees in the United States and about 600 overseas
2 Share data: Yahoo finance as of Nov. 11 , 2013
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Business Overview
Power Generation
• Approx. 70% of Revenue1
• In operation: 595 MW (net)
• Expected by the end of 2014: 637 MW (net)
Products
• Approx. 30% of Revenue1
• Backlog2 of $173 million
• Supplied over 1,750 MW to 24 countries
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1 Five years average 2 The backlog is as of Nov. 5 2013.
Olkaria III, Kenya Ngatamariki , New Zealand
Copyright © 2013 Ormat Technologies, Inc.
$239 $242 $280
$312 $314 $330
2008 2009 2010 2011 2012 2013E
Power Generation
2nd Largest Geothermal Owner in the U.S
• Owns and operates 595 MW of generating capacity in 17 complexes
and power plants worldwide
• Diversified portfolio
• Weighted average of remaining contractual life approx. 14 yrs.
• High availability
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Kenya 92 MW
United States 461MW
Guatemala 42 MW
Annual Revenue1 ($million)
1 The Momotombo revenues are excluded from the total revenues due to the sale of the plant in Nicaragua in June 2013
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44 41
37 38 32 31
2008 2009 2010 2011 2012
Power Generation - Continuous Improvement
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2,712 3,110
3,560 3,682 3,943
2008 2009 2010 2011 2012
Excluding North Brawley
Annual Generation1 (GWh) All Inclusive OpEx2 ($/MWh)
1 The Momotombo operations are excluded from the generation and from all Inclusive OpEx due to the sale of the plant in Nicaragua in June 2013.
2 All Inclusive OpEx includes fixed O&M, variable O&M, field O&M, royalties, and related G&A.
3 2012 figure excludes a non- recurring item in the amount of $ 3.3 million.
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Copyright © 2013 Ormat Technologies, Inc.
Market share is based on EER Global Geothermal Markets and Strategies report (2009);
Products - Technology Leader
• Most successful track record of all non steam solutions
• Technology leader for today’s resource needs
• Over 25 years of experience in developing unique engineering
solutions for a wide range of geothermal resource conditions
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Geothermal Power plants
Recovered Energy Generation (REG)
Remote Power Units
Copyright © 2013 Ormat Technologies, Inc.
1 Backlog is as of November 5, 2013
Products - Technology Leader
• Strong backlog1 of $173 million
• Signed $254 million supply contract for the 330 MW Sarulla
project in Indonesia • Expect to complete financing and begin construction next year
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$93
$159
$81
$113
$187 $195-$205
2008 2009 2010 2011 2012 2013E
Annual Revenue ($million)
Copyright © 2013 ORMAT. All rights reserved. This document contains information proprietary to ORMAT. Reproduction in any form without prior written permission is strictly prohibited.
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Areas with Potential Geothermal Resources
Installed Capacity 2012
Hydrothermal Geothermal Resources Potential (139,555 MW)
Source: Hydrothermal Geothermal Resources Potential, EMERGING ENERGY RESEARCH, LLC. Global “Geothermal Markets and Strategies: 2009–2020”, May 2009. "Geothermal Power Generation in the World 2005–
2010 Update Report" Ruggero Bertani Enel Green Power, via Dalmazia 15 – 00198 Roma (Italy) April 2010. Geothermal: International Market Overview Report, GEA May 2012.
Worldwide installed capacity - approx. 11,200 MW
3,729
36,330
209
5,850
1,074
6,982 620
6,000
Global Geothermal Potential (MW)
3,201
46,903
1,516
31,980
865
5,510
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Supportive Legislation - U.S.
Creates Demand • Renewable Portfolio Standard (RPS)
• Adopted by 40 States1 as mandatory law or
as a goal
• June 2013 - Nevada passed a series of
new laws expected to continue to support
renewable energy development
Supports Economics2
• Tax incentives; choose between: • Production Tax Credit (PTC)
• 30% Investment Tax Credit (ITC)
• 30% ITC cash grant
• Accelerated depreciation
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1Source: www.pewclimate.org ,www.cpuc.ca.gov , www.dsireusa.org 2Projects that are under construction by December 2013 will qualify for 10 years of production tax credits on the electricity output or an investment tax credit (ITC) upon project completion
for 30% of the project cost. The ITC grant is applicable to projects that will commence operation by the end of 2013, the 30% is before sequestration
RPS -State Requirements & Compliance
2011
20%
2015
23% 27%
2017
33%
2020 2013
20%
California
2012 compliance - 20%
2011 2013 2015 2020 2025
15% 20% 18%
22% 25%
25%
40%
15%
11%
2011 2015 2020 2030
Nevada
2012 compliance - 20%
Hawaii
2012 compliance - 14%
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Initiatives to Support Renewables in the Global Market
• Power Africa initiative - double the access to power over the
next five years
• The U.S. will invest up to $7 billion in seven sub-Saharan
states of which, Kenya, Ethiopia and Tanzania have a
potential for geothermal energy
• Asia-Pacific comprehensive partnership for sustainable
energy
• The U.S. has allocated up to $6 billion for green energy
development
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Growth in the Electricity Segment
• Started operation of 51 MW from Tuscarora and McGinness Hills
• May - commercial operation of the 36 MW Olkaria III plant 2
• June - McGinness Hills and Olkaria III capacity increased by 6 MW
• Expected by year-end- additional 26 MW from Heber Solar and Don Campbell projects
• 16 MW from Olkaria III Plant 3
• Generating capacity is expected to reach 637 MW
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302
575 621 637
2004 2012 2013E 2014E
10-Year Growth (MW)
2012
2013
Future
projects
2014E
• Projects under various stages of development
• Strong land position
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# Project Location
Projected
Generating
Capacity (MW)
Projected
Completion
Power
Purchase
Agreement
May Qualify
for ITC Cash
Grant
1 Heber Solar California 10
(24,500 MWh /year) By YE-2013(1)
2 Don A. Campbell
(formerly Wild Rose) Nevada 16 By YE-2013
3 Olkaria III - plant 3 Kenya 16 H1 2014 NA
Total 42 MW
Projects under Construction
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Fully Released for Construction
# Project Location Projected Generating
Capacity (MW)
Projected
Completion
Power
Purchase
Agreement
May Qualify
for PTC
1 Carson Lake Nevada 20 TBD -
2 CD4 (Mammoth
Complex) California 30 TBD -
Total 50 MW
Initial Stage of Construction
(1) Subject to timely completion of the interconnection
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Future Projects
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# Project Location Projected
Generating Capacity (MW) Power Purchase Agreement
1 Crump Geyser (1) Oregon 10 -
2 Platanares(2) Honduras 35
3 Sarulla(3) Indonesia 42
4 McGinness Hills - Phase 2(4) Nevada 30
5 Wister(5) California 30
Total 147 MW
(1) Ormat has signed a 50:50 Joint Venture with Alternative Earth Resources Inc. (formerly Nevada Geothermal Power) to develop a binary geothermal power plant, approx., 20 MW, at Crump Geyser in Oregon.
(2) Development is subject to fulfillment of certain conditions.
(3) Ormat owns 12.75% interest in the Sarulla consortium that plan to develop the 330 MW net project to be constructed in three phases.
(4) The McGinness Hills Phase 2 is covered under the existing financing structure of the Department of Energy’s loan guarantee program under section 1705 and may qualify for PTC.The PPA is subject to PUCN
approval
(5) Considering termination of the PPA with the offtaker.
Projects under Various Stages of Development
Additional Developments
• Awarded tender for Geothermal Power Plant by GDC in Kenya
• Entered into a Joint Development Agreement with eBay Inc. for the development of a 5 MW REG power plant to be
constructed in Utah
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• Ormat's growth beyond 2013 will depend on the success in its exploration efforts
• Strong land position to support future growth
NZ, 1
Indonesia, 1
Future Projects -Exploration Prospects
Status of 39 Prospects Prospects: U.S. - 29; Global - 10
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Exploration
drilling
Expected to
start
exploratory
drilling
Exploration
studies
Lease
acquired
Chile,6
Guatemala, 2
U.S., 29
NV, 11
UT, 2
AK, 1
HI, 3
NM, 1
OR, 9
CA, 2
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• PPA
• Plant design
• Completion field development & equipment manufacturing
• Plant permits
• Gathering system and plant construction
• Testing and start up
• Acceptance test
• Commercial operation
• Site Identification
• Lease agreement
• Permitting
• Exploration
• Initial field development & well testing
Geothermal Green Field Development Process
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Copyright © 2013 Ormat Technologies, Inc.
Financial Highlights
• Financial and technical capability to expand asset base
• Solid revenue stream
• Solid liquidity position
• Profitable operations
• Year over year growth
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Copyright © 2013 Ormat Technologies, Inc.
(in millions of USD)
Financials - Total Revenue1
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239 242 280
312 314 330
93
159 81
113
187
195- 205
2008 2009 2010 2011 2012 2013E
Electricity Product
$332
$401 $361
$425
$525-$535
$501
239 245
150 157
9M 2012 9M 2013
$389
1 The Momotombo revenues are excluded from the total revenues due to the sale of the plant in Nicaragua in June 2013
$402
Copyright © 2013 Ormat Technologies, Inc.
1In millions of USD; For reconciliation of Adjusted EBITDA see the Appendix 2 2011 Net loss included $61.5 million non-cash-related valuation allowance; Net income excluding valuation allowance was $18.8 million 32012 Net loss was effected by a non- cash pre tax impairment charge of $236.4 million relating to the North Brawley and OREG IV power plants
Earnings
(Loss)
per Share
(Diluted)
2008 2009 2010 20112 20123 9M 2012 9M 2013
$0.98 $1.51 $0.82 $(0.95) $(4.54) $0.35 $0.72
Financials - Adjusted EBITDA & EPS
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Adjusted EBITDA1
$122
$167 $164 $167 $186
$150
$176
2008 2009 2010 2011 2012 9M 2012 9M 2013
Copyright © 2013 Ormat Technologies, Inc.
Total Cash (Incl. $84 million restricted cash) $119
Principal payment for the remainder of 2013 $ 31
Corporate debt $467(43%)
Project Finance debt $608 (57%)
Property, plant and equipment, net and construction in process ($336 million) $1,719
Total assets $2,168
Total liabilities $1,431
Equity $737
Net debt $956
Net-Debt-to-Capital Ratio 56%
Strong Balance Sheet
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As of Sept. 30, 2013 (in millions of USD)
Additional Capital sources
• Unused corporate lines of credit of $145 million
• Expected - up to $45 million under the OPIC loan in 2013
• Expected - an estimated amount of $30 million1 Treasury cash grant for Heber Solar and Don A. Campbell
(Wild rose)
1 Estimated amount based on construction cost of $4.5 million per MW and 28% Treasury cash grant (subject to 7.3% sequestration)
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Investment Highlights
• Strong global demand for renewable energy
• Federal and state regulations support
• Base load energy that optimizes grid utilization
• Technology leader with proven track record
• Balanced business model: Electricity & Products segments
• Strong balance sheet
• Access to additional sources of capital
• Positive cash flow from operation
• Vertical Integration
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Copyright © 2013 Ormat Technologies, Inc.
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The Power of Experience
For further information: www.ormat.com/ [email protected]
Thank you
Copyright © 2013 Ormat Technologies, Inc.
Air-Cooled Binary Geothermal Power Plant
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Recovered Energy Generation (REG) System
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Reconciliation of Adjusted EBITDA and Additional
Cash Flows Information
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Reconciliation of EBITDA, Adjusted EBITDA and Additional Cash Flows Information
For the Nine and Three-Month Periods Ended September 30, 2013 and 2012
(Unaudited)
We calculate EBITDA as net income before interest, taxes, depreciation and amortization. We calculate Adjusted EBITDA as net income before interest, taxes,
depreciation and amortization, excluding impairment of long-lived assets and one-time termination fee. EBITDA and Adjusted EBITDA are not a measurement of financial
performance or liquidity under accounting principles generally accepted in the United States of America and should not be considered as an alternative to cash flow from
operating activities or as a measure of liquidity or an alternative to net earnings as indicators of our operating performance or any other measures of performance derived
in accordance with accounting principles generally accepted in the United States of America. EBITDA and Adjusted EBITDA are presented because we believe they are
frequently used by securities analysts, investors and other interested parties in the evaluation of a company’s ability to service and/or incur debt. However, other
companies in our industry may calculate EBITDA and Adjusted EBITDA differently than we do.
The following tables reconcile net cash provided by (used in) operating activities and net income to EBITDA and Adjusted EBITDA for the nine and three-month periods
ended September 30, 2013 and 2012:
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Reconciliation of Adjusted EBITDA
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