Ormat Technologies Inc. revised its full-year guidance to reflect the shutdown of the 38-MW Puna Geothermal Venture I plant in Hawaii, which has been damaged by lava from the Kilauea volcano. The company owns 63.25% of the Puna facility.
"In Hawaii, lava continues to flow near our Puna Plant, and it is not yet possible to anticipate a timeline for the lava flow resolution. This impacts our financials, but we are in discussion with our insurers and expect to be reimbursed for loss of profits and property damages. Assuming the insurance reimbursement will be in line with our expectations we will meet our adjusted EBITDA targets for the year," Ormat CEO Isaac Angel said in an Aug. 8 news release.
Due to the continued lava flow near the Puna facility and the accounting treatment which does not allow the recording of insurance payouts in revenue, Ormat adjusted its full-year 2018 guidance for electricity segment revenues to be in the range of $500 million and $510 million.
The company increased its full-year 2018 adjusted EBITDA guidance to a range of $370 million to $380 million, assuming a successful resolution of the company's insurance claim for loss of profits at the Puna facility by the end of 2018. Ormat is also targeting total revenues to be between $698 million and $722 million.
In case a resolution is not met for Ormat's insurance claim by the end of the year, the company's 2018 adjusted EBITDA will be negatively impacted by approximately $20.0 million. Ormat also expects its annual adjusted EBITDA attributable to minority interest to be approximately $30 million. The minority interest includes the company's partners' share in the insurance claim for the Puna plant.
On the earnings front, Ormat reported adjusted EBITDA of $80.8 million in the second quarter of 2018, an 8.3% drop from $88.1 million a year ago.
Adjusted net income attributable to the company's stockholders totaled $16.6 million, or 32 cents per share, a drop from $29.5 million, or 58 cents per share, a year earlier. The S&P Global Market Intelligence consensus normalized EPS estimate for the quarter was 45 cents.
Net loss attributable to the company's shareholders was $343,000, or a loss of 1 cent per diluted share, compared to net income attributable to the company's shareholders of $8.6 million, or 17 cents per diluted share, in the second quarter of 2017.
Revenues were $178.3 million, an increase of 0.6% from $179.4 million a year ago.