Ormat expects electricity, equipment sales to increase

Ormat Technologies, a publicly held geothermal energy company based in Sparks, expects that its revenues will increase by at least 8 percent during this year.

The company said it expects to sell about $195 million in electricity from its geothermal plants around the world. That compares with electricity sales of about $105 million this year.

Dita Bronicki, president and chief executive officer of Ormat, said the company expects to bring about 35 megawatts of new generating capacity on line in Nevada and Guatemala. It will add another 24 megawatts of capacity as it expands existing facilities, she said.

Along with the electricity sales, Ormat projects that revenues from its sales of geothermal equipment will rise to more than $60 million to $70 million this year. That compares with of revenues of $60.6 million in the segment during 2005.

The company reported last week that it lost $5.1 million during the fourth quarter of 2005, largely because it incurred a one-time charge of $16.6 million to refinance its debt with Beal Bank on a geothermal complex that provides power to Southern California Edison.

Ormat said it expects to reduce that charge through lower interest expenses in the future.

Operating income for the quarter was $13.8 million compared with $14.3 million a year earlier. Revenues in the quarter totaled $58.8 million compared with $56.2 million a year earlier.

Ormat said the costs of compliance with Sarbanes-Oxley requirements as well as higher research expenses trimmed its earnings.

The company will pay a dividend of 3 cents a share on April 4 to shareholders of record March 28. Its board said it expects the payout will increase to 4 cents a share in the next three quarters as Ormat sets its dividend rate at about 20 percent of its earnings.

The company has operations in the United States, Israel, the Philippines, Guatemala, Kenya and Nicaragua.

Near Reno, it operates geothermal generating plants in the Steamboat area at Mount Rose Highway and U.S. 395.