HIGHLIGHTS

• TOTAL REVENUES FOR THE FOURTH QUARTER INCREASED BY 6.5% YEAR OVER YEAR
• ELECTRICITY SEGMENT DELIVERED RECORD FISCAL 2021 REVENUES AND GREW BY 8.2% VERSUS PRIOR YEAR
• STORAGE DEVELOPMENT PIPLENE GREW TO 2.3GW
• ORMAT PORTFOLIO POISED TO DELIVER SIGNIFICANT GROWTH SUPPORTED BY THE EXPANSION OF OUR GEOTHERMAL ELECTRICITY PORTFOLIO
• ORMAT PROVIDED FULL YEAR 2022 ADJUSTED EBITDA OUTLOOK OF $430 - $450 MILLION

Ormat Technologies, Inc. (NYSE: ORA), a leading geothermal, energy storage, solar PV and recovered energy power company, today announced financial results for the fourth quarter and full year ended December 31, 2021.

KEY FINANCIAL RESULTS

“The fourth quarter marked a strong finish for 2021, with quarterly results for both revenues and Adjusted EBITDA delivering significant growth versus last year’s notably strong fourth quarter,” said Doron Blachar, Ormat’s Chief Executive Officer. “We are encouraged by the record quarterly Adjusted EBITDA along with year over year growth in revenue, operating income and adjusted EPS. This demonstrated growth is supported by our expanding electricity and energy storage portfolios, which we expect will continue to grow in 2022. Our operational performance is improving, and we are capturing the benefit of our strategic actions, as our revenues and profitability reflect the contributions from our capacity expansions, Puna’s resumed profitable operation and acquisitions in our geothermal portfolio.”

Blachar added, “Looking ahead to 2022, we expect to deliver meaningful revenue expansion, driving profitable growth of roughly 10% in Adjusted EBITDA versus 2021 results. This will be supported by expected increases to capacity in both our Electricity and Energy Storage segments. With the growing demand for geothermal energy and current regulatory tailwinds, we remain confident in our long-term plans to increase our combined geothermal, energy storage and solar generating portfolio to more than 1.5 GW by 2023. We are on track to deliver an annual Adjusted EBITDA of $500 million on a run-rate basis towards the end of 2022 and expect these figures to continue their healthy growth trajectory as we move forward with our plans in 2023 and onwards. We firmly believe that our strategy, our assets, and our advantageous cost structure position Ormat to succeed in the current environment, as we look to execute on our portfolio expansion, capture stronger margins, and drive shareholder value. We invite you all to participate in our upcoming Investor Day, where we will expand further on our long-term goals and our strategic plans for the future.”

FINANCIAL AND RECENT BUSINESS HIGHLIGHTS

• Net income attributable to the Company's stockholders and diluted EPS for the fourth quarter 2021 decreased 8.7% and 12.8%, respectively versus the prior year period. The decrease was mainly due to higher interest expenses following our recent geothermal assets acquisition and losses related to our minority investment in the Sarulla project in Indonesia. Adjusted net income attributable to the Company’s stockholders and diluted EPS for the fourth quarter 2021 increased 10.1% and 5.1%, respectively versus the prior year period. Net income attributable to the Company’s stockholders for the fourth quarter 2021 was adjusted to exclude Tax asset write-off in Sarulla, our unconsolidated company.
• Net income attributable to the Company's stockholders and diluted EPS for the full year 2021 decreased 27.3% and 33.3%, respectively versus last year. The decrease is mainly related to a significant reduction in our Product segment revenues and gross profit, higher general and administrative expenses, higher interest expenses and net loss related to the February power crisis in Texas. In addition, insurance proceeds related to our Puna power plant were higher in 2020 versus 2021 by approximately $13.4 million. Adjusted net income attributable to the Company's stockholders and diluted EPS for the full year 2021 decreased 8.1% and 15.8%, respectively versus last year. Net income attributable to the Company's stockholders was adjusted to exclude a one-time net expense of $8.8 million after tax related to the February power crisis in Texas, Tax asset write-off in Sarulla and M&A costs related to the acquisition of the new geothermal assets.
• Adjusted EBITDA for the fourth quarter 2021 was a record of $116.0 million, an increase of 6.3% compared to $109.2 million in 2020, supported by growth in the Electricity segment driven by our McGinness Hills expansion, revenue growth in our Energy Storage segment, resumed operations at the Puna power plant and successful integration of the two newly acquired geothermal assets in Nevada.
• Adjusted EBITDA for the fiscal year 2021 was $401.4 million, a decrease of 4.5% compared to $420.2 million in fiscal 2020, due primarily to a $27.6 million reduction in gross profit of the Product segment, offset partially by improved performance of the Electricity and Energy Storage segments.
• Electricity segment revenues increased 8.2% for the year and 12.4% for the fourth quarter compared to 2020, supported by contributions from the newly added geothermal assets, McGinness Hills expansion and the recovery of the Puna power plant, partially offset by field operational issues in the Olkaria power plant in Kenya and the temporary slowdown of the Bouillante power plant in Guadeloupe, which is now running close to full capacity.
• After resuming operations in the fourth quarter of 2020, the Puna Geothermal Power Plant stabilized at 25 MW in 2021.
• Generation in the fourth quarter 2021 was 1.8 million MWh, an increase of 12.4% compared to 1.6 million MWh in the fourth quarter of 2020. Generation for the full year 2021 was 6.5 million MWh compared to 6.0 million MWh in 2020, an increase of 8.0%.

IN ADDITION, THE COMPANY:

• Successfully resumed normal operation of the Brawley and Guadeloupe power plants following operational issues that lowered performance in 2021.
• Started construction at Dixie Meadows project and expects commercial operation by year end 2022.
• Is preparing to increase Olkaria’s generation gradually during the second quarter of 2022 by 10 MW to 12 MW following the power plant’s planned modification and expects to reach between 135 MW to 140 MW by the end of 2022.
• Plans to provide further details on our long-term growth plans and targets at an Analyst Day to be held on March 30, 2022. More details on attending the event will be provided in a later press release.

2022 GUIDANCE

• Total revenues of between $725 million and $750 million
• Electricity segment revenues between $645 million and $655 million
• Product segment revenues of between $50 million and $60 million
• Energy Storage segment revenues of between $30 million and $35 million
• Adjusted EBITDA to be between $430 million and $450 million, including $9.0 million for insurance proceeds
  • Adjusted EBITDA attributable to minority interest of approximately $32 million.

The Company provides a reconciliation of Adjusted EBITDA, a non-GAAP financial measure for the three months and year ended December 31, 2021. However, the Company does not provide guidance on net income and is unable to provide a reconciliation for its Adjusted EBITDA guidance range to net income without unreasonable efforts due to the high variability and complexity with respect to estimating certain forward-looking amounts. These include impairments and disposition and acquisition of business interests, income tax expense, and other non-cash expenses and adjusting items that are excluded from the calculation of Adjusted EBITDA.

DIVIDEND

On February 23, 2022, the Company’s Board of Directors declared, approved, and authorized payment of a quarterly dividend of $0.12 per share pursuant to the Company’s dividend policy. The dividend will be paid on March 23, 2022, to stockholders of record as of the close of business on March 9, 2022. In addition, the Company expects to pay a quarterly dividend of $0.12 per share in each of the next three quarters.

CONFERENCE CALL DETAILS

Ormat will host a conference call to discuss its financial results and other matters discussed in this press release on Thursday, February 24th, at 10 a.m. ET. The call will be available as a live, listen-only webcast at investor.ormat.com. During the webcast, management will refer to slides that will be posted on the website. The slides and accompanying webcast can be accessed through the News & Events in the Investor Relations section of Ormat’s website. A replay of the webcast will be available approximately two hours after the conclusion of the live call and will be archived for 12 months.

Investors may access the call by dialing:

Conference replay

ABOUT ORMAT TECHNOLOGIES

With over five decades of experience, Ormat Technologies, Inc. is a leading geothermal company and the only vertically integrated company engaged in geothermal and recovered energy generation (“REG”), with robust plans to accelerate long-term growth in the energy storage market and to establish a leading position in the U.S. energy storage market. The Company owns, operates, designs, manufactures and sells geothermal and REG power plants primarily based on the Ormat Energy Converter – a power generation unit that converts low-, medium- and high-temperature heat into electricity. The Company has engineered, manufactured and constructed power plants, which it currently owns or has installed for utilities and developers worldwide, totaling approximately 3,200 MW of gross capacity. Ormat leveraged its core capabilities in the geothermal and REG industries and its global presence to expand the Company’s activity into energy storage services, solar Photovoltaic (PV) and energy storage plus Solar PV. Ormat’s current total generating portfolio is 1.1 GW with a 1,012 MW geothermal and Solar generation portfolio that is spread globally in the U.S., Kenya, Guatemala, Indonesia, Honduras, and Guadeloupe, and an 83 MW energy storage portfolio that is located in the U.S.

ORMAT’S SAFE HARBOR STATEMENT

Information provided in this press release 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. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that we expect or anticipate will or may occur in the future, including such matters as our projections of annual revenues, expenses and debt service coverage with respect to our debt securities, future capital expenditures, business strategy, competitive strengths, goals, development or operation of generation assets, market and industry developments and the growth of our business and operations, are forward-looking statements. When used in this press release, the words “may”, “will”, “could”, “should”, “expects”, “plans”, “anticipates”, “believes”, “estimates”, “predicts”, “projects”, “potential”, or “contemplate” or the negative of these terms or other comparable terminology are intended to identify forward-looking statements, although not all forward-looking statements contain such words or expressions. These forward-looking statements generally relate to Ormat's plans, objectives and expectations for future operations and are based upon its management's current estimates and projections of future results or trends. Although we believe that our plans and objectives reflected in or suggested by these forward-looking statements are reasonable, we may not achieve these plans or objectives. Actual future results may differ materially from those projected as a result of certain risks and uncertainties, and other risks described under "Risk Factors" in Ormat’s annual report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on February 26, 2021 and in Ormat’s annual reports on Form 10-K and quarterly reports on Form 10-Q that are filed from time to time with the SEC.

These forward-looking statements are made only as of the date hereof, and, except as legally required, we undertake no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.

ORMAT TECHNOLOGIES, INC AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
For the three-month and year-end periods ended December 31, 2021, and 2020

ORMAT TECHNOLOGIES, INC AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
For the periods ended December 31, 2021, and December 31, 2020

ORMAT TECHNOLOGIES, INC AND SUBSIDIARIES
Reconciliation of EBITDA and Adjusted EBITDA
For the three-month and year ended December 31, 2021, and 2020

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, adjusted for (i) mark-to-market gains or losses from accounting for derivatives, (ii) stock-based compensation, (iii) merger and acquisition transaction costs, (iv) gain or loss from extinguishment of liabilities, (v) cost related to a settlement agreement, and (vi) other unusual or non-recurring items. We adjust for these factors as they may be non-cash or unusual in nature and/or are not factors used by management for evaluating operating performance. We believe that presentation of this measure will enhance an investor’s ability to evaluate our financial and operating performance. EBITDA and Adjusted EBITDA are not measurements of financial performance or liquidity under accounting principles generally accepted in the United States, or GAAP, 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 U.S. GAAP.

Our board of directors and senior management use EBITDA and Adjusted EBITDA to evaluate our financial performance. However, other companies in our industry may calculate EBITDA and Adjusted EBITDA differently than we do. This information should not be considered in isolation from, or as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP or other non-GAAP financial measures.

The following table reconciles net income to EBITDA and Adjusted EBITDA for the three-month and year ended December 31, 2021, and 2020.

ORMAT TECHNOLOGIES, INC AND SUBSIDIARIES

Reconciliation of Adjusted Net Income attributable to the Company's stockholders and Adjusted EPS
For the three-month and year end periods ended December 31, 2021, and 2020

We calculate Adjusted Net Income and Adjusted diluted EPS as Net Income Attributable to the Company's Stockholders and Diluted EPS, respectively, adjusted for costs that are unusual or non-recurring in nature. We adjust for these factors as they may be non-cash or unusual in nature and/or are not factors used by management for evaluating operating performance. We believe that presentation of these measures will enhance an investor’s ability to evaluate our financial and operating performance. The use of Adjusted Net income attributable to the Company's stockholders and Adjusted EPS is intended to enhance the usefulness of our financial information by providing measures to assess the overall performance of our ongoing business.

The following tables reconciles Net income attributable to the Company's stockholders and Adjusted EPS for the three-month and year ended periods ended December 31, 2021, and 2020.

¹ Reconciliation is set forth below in this release