HIGHLIGHTS

• TOTAL REVENUES FOR THE SECOND QUARTER INCREASED BY 15.1% YEAR OVER YEAR LED BY ELECTRICITY SEGMENT
• OPERATING INCOME INCREASED 34.9% YEAR OVER YEAR
• ADJUSTED EBITDA GREW 19.1% YEAR OVER YEAR
• ORMAT REITERATES 2022 ANNUAL GUIDANCE

Ormat Technologies, Inc. (NYSE: ORA), a leading geothermal, energy storage, solar PV and recovered energy power company, today announced financial results for the second quarter ended June 30, 2022.

KEY FINANCIAL RESULTS

“Ormat’s second quarter financial performance demonstrated healthy top-line and Adjusted EBITDA growth, driven by strong performance from our Electricity segment as well as our Energy Storage Segment,” said Doron Blachar, Ormat’s Chief Executive Officer. “Our robust top-line and solid margin capture are driving significant expansion to both Adjusted EBITDA¹ and Operating Income. Our bottom line was negatively impacted by a $2.9 million after-tax loss related to foreign currency hedging that reduced our earnings per share by approximately 5 cents. The strong performance of our Electricity and Energy Storage segments is expected to continue in the second half of the year, benefiting from the ramp up in the operation of new five different projects with a total capacity of 73MW added since the end of the first quarter.”

“We are encouraged by our robust pipeline and our ability to benefit from the attractive energy rates and structure of the three portfolio PPAs we signed in Nevada and California for up to 285MW. These agreements demonstrate the increased demand for geothermal energy, while securing most of our PPA renewals and the capacity we plan to add in the next few years in the U.S. We remain confident with our long-term plans to increase our combined geothermal, energy storage and solar generating portfolio to approximately 1.5 GW by 2023 and to deliver an annual Adjusted EBITDA of $500 million on a run-rate basis towards the end of 2022,” Blachar added.

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1} Reconciliation is set forth below in this release

FINANCIAL AND RECENT BUSINESS HIGHLIGHTS

• Net income attributable to the Company's stockholders and diluted EPS for the second quarter of 2022 decreased 13.6% and 13.0%, respectively, versus the prior year period. The decrease was mainly due to a $4.0 million pre-tax loss ($2.9 million after tax) from currency-related headwinds attributed to a stronger U.S. dollar, and $1.1 million pre-tax ($0.8 million after tax) of other expenses related to debt extinguishment costs.
• Adjusted Net income attributable to the Company's stockholders and adjusted diluted EPS for the second quarter of 2022 decreased 6.7% and 6.4%, respectively, versus the prior year period.
• Adjusted EBITDA for the second quarter of 2022 was $100.7 million, an increase of 19.1% compared to $84.5 million in 2021, supported by growth in the Electricity segment and lower G&A costs mainly as a result of the reduction in legal costs.
• Electricity segment revenues increased 12.9% for the second quarter of 2022, compared to 2021, driven by focused execution against our strategic plan, supported by the addition of the Terra-Gen assets to our portfolio, the expansion of the Tungsten 2 power plant, and the realization of higher prices and generation at Puna, partially offset by the partial operation of the Heber 1 power plant and Dixie Valley’s accelerated maintenance work.
• Product segment revenues increased 40.2% to $10.4 million, and cost of revenues increased 75%. In the second quarter, we recognized revenues for contracts that were signed in 2021 and negatively impacted by higher raw materials costs in 2022.
• Product segment backlog grew this quarter by 20.1% compared to the first quarter of 2022. Backlog stands at $54.9 million as of August 03, 2022, and we were able to sign contracts awarded earlier in the quarter totaling approximately $20 million.
• Energy storage segment revenues increased 33.1% to $7.5 million, primarily due to a $2.4 million increase in revenues attributed to the PJM assets related to an increase in commodity prices.

IN ADDITION, THE COMPANY:

• Signed two large PPAs with NV Energy for up to 160 MW of Geothermal capacity.
• Executed a PPA with CC Power for up to 125 MW of Geothermal capacity.
• Commenced commercial operation of several projects including the CD4 and Tungsten 2 geothermal power plants, Wister and Steamboat solar plants, and Tierra Buena BESS, adding 73MW since the end of the first quarter
• Strengthened its financial flexibility with the offering of $431.3 million in green convertible senior notes due in 2027 at an attractive coupon rate of 2.5%. The proceeds were mainly used to refinance higher-cost debt and the remainder will be used to support our renewable energy growth.
• Buy back of approximately 260K shares at an attractive price
• Prepaid $221.9 million of more expensive senior unsecured bond series 3.
• Improved the diversity of its board of directors, adding two new highly skilled female members

2022 GUIDANCE

• Total revenues of between $710 million and $735 million.
• Electricity segment revenues between $630 million and $640 million.
• Product segment revenues of between $50 million and $60 million.
• Energy Storage revenues of between $30 million and $35 million.
• Adjusted EBITDA to be between $430million and $450million, including$15.0million for business interruption insurance proceeds, of which5.2 million were recorded in the six months ended June 30, 2022.
  • Adjusted EBITDA attributable to minority interest of approximately $38 million.

The Company provides a reconciliation of Adjusted EBITDA, a non-GAAP financial measure for the three months ended June 30, 2022. 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 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 August 3, 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 August 31, 2022, to stockholders of record as of the close of business on August 17, 2022. In addition, the Company expects to pay a quarterly dividend of $0.12 per share in each of the next two 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, August 4 at 10:00 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 120 minutes after the conclusion of the live call and will be archived for 12 months.

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 1,168 MW with a 1,080 MW geothermal and solar generation portfolio that is spread globally in the U.S., Kenya, Guatemala, Indonesia, Honduras, and Guadeloupe, and an 88 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" as described in Ormat’s annual report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on February 25, 2022, and in Ormat’s subsequent quarterly reports on Form 10-Q and annual reports on Form 10-K 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 Statement of Operations
For the Three and Six-Month periods Ended June 30, 2022, and 2021

ORMAT TECHNOLOGIES, INC AND SUBSIDIARIES
Condensed Consolidated Balance Sheet
For the Periods Ended June 30, 2022, and December 31, 2021

ORMAT TECHNOLOGIES, INC AND SUBSIDIARIES
Reconciliation of EBITDA and Adjusted EBITDA
For the Three- and Six-Month Periods Ended June 30, 2022, and 2021

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) termination fees, (ii) impairment of long-lived assets, (iii) write-off of unsuccessful exploration activities, (iv) any mark-to-market gains or losses from accounting for derivatives, (v) merger and acquisition transaction costs, (vi) stock-based compensation, (vii) gain or loss from extinguishment of liabilities, (viii) gain or loss on sale of subsidiary and property, plant and equipment and (ix) other unusual or non-recurring items. EBITDA and Adjusted EBITDA are not measurements of financial performance or liquidity under accounting principles generally accepted in the United States, or U.S. 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. We use EBITDA and Adjusted EBITDA as a performance metric because it is a metric used by our Board of Directors and senior management in evaluating our financial performance. However, other companies in our industry may calculate EBITDA and Adjusted EBITDA differently than we do.

The following table reconciles net income to EBITDA and Adjusted EBITDA for the three- and six-Month periods ended June 30, 2022, and 2021.

ORMAT TECHNOLOGIES, INC AND SUBSIDIARIES
Reconciliation of Adjusted Net Income attributable to the Company's stockholders and Adjusted EPS
For the Three and Six-month Periods Ended June 30, 2022, and 2021

Adjusted Net Income attributable to the Company’s stockholders and Adjusted EPS are adjusted for one-time expense items that are not representative of our ongoing business and operations. 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 periods ended June 30, 2022 and 2021.