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>>> Ormat Signs $36M Power Project Deal (ORA)




By Jeff Hawkins

December 12, 2016



http://www.investopedia.com/news/ormat-signs-36m-power-project-deal-ora/?partner=YahooSA


Ormat Technologies Inc. (ORA), a Reno, Nevada-based electric utilities company, remained close to home in its latest expansion effort.

Ormat’s subsidiary, Ormat Nevada Inc., agreed to a $36 million contract with a division of Cyrq Energy Inc. on Tuesday, December 6. The agreement centers on engineering, procurement and construction (EPC) of an air-cooled Ormat Energy Converter (OEC) at Cyriq’s Soda Lake geothermal power project. The EPC project in Northern Arizona is projected to be completed by mid-2018, according to a press release. (See also: The Industry Handbook: The Utilities Industry.)

The EPC project upgrades two power plants Ormat installed in the 1980s and 1990s. By replacing two power plants with the new energy converter, Cyriq seeks to reduce operating costs, a release stated.

“We are delighted to be chosen again by Cyrq,” Ormat CEO Isaac Angel said. “Over the years, we increased our OEC unit sizes considerably and improved efficiencies, providing our clients with the ability to utilize geothermal resources in a more sustainable and economical manner. The Soda Lake project will benefit from these advancements in our OEC proprietary technology derived over the past three decades, and this contract will further strengthen our position as a reliable and dependable supplier and contractor.”

Angel added Ormat has approximately $100 million of contracts under negotiations and the Cyrq deal will add product segment revenue for the next two years.

Ormat had a market valuation of $2.49 billion and its stock closed Friday’s session trading at $50.17, an increase of .91 percent. It is trending toward topping its 52-week high of $51.19. (See also: Top 5 Geothermal Power Stocks of 2016.)

In other recent deals, Ormat announced a 25-year power purchase agreement with Southern California Public Power Authority (SCPPA) Dec. 1. The deal calls for SCPPA to receive generated power from a geothermal complex in Imperial Valley, California. Ormat also announced Nov. 30 the closing of a private placement of senior secured notes. Valued at $92.5 million, Ormat will utilize the funds to refinance the Don A. Campbell Phase I Geothermal Power Project, according to press releases.

JP Morgan downgraded Ormat’s stock to Neutral in May

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