Ormat Expects Loss for Q1

Ormat Technologies, Inc. (NYSE: ORA) announced it expects to report a net loss in the range of $5.5-$6.5 million ($0.14-$0.17 per share) for the first quarter of 2007. The loss is mainly due to the cumulative effect of several unrelated events that occurred during the first quarter, as described below: — Increase in maintenance costs incurred in the Heber 1, Puna and Ormesa projects, in part due to maintenance overhauls that are scheduled every four to five years and in part due to accelerated maintenance costs to assure higher well availability in the summer months when electricity rates paid under the relevant power purchase agreements are higher. Additionally, in the case of Heber 1, there also was a reduction in revenues during the overhaul period. — Reduction in revenues as a result of an unforeseen delay, mainly relating to permitting, in completion of the Galena 2 and Steamboat Hills projects, which have now received the necessary permits and are currently in acceptance tests; and a reduction in revenues due to a failure of turbines, not manufactured by us, at the Steamboat 2 and 3 project. — A delay in Products Segment revenue recognition from the first quarter to subsequent quarters […]

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