ORMAT TECHNOLOGIES INC
For the period ended Jun 30, 2024. Filed Aug 7, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Aug 7, 2024
ORA$91.90-1.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-31; filed 2024-05-10.
0001437749-24-015856
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2024-06-30; filed 2024-08-07.
0001628280-24-035397
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 167 previous paragraphs and 263 current paragraphs.
101 unchanged; 55 reworded; 91 added; 8 removed; 3 previous and 16 current paragraphs rearranged.
Tables are not compared: 74 previous and 19 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (91)
Current report
•Our financial performance depends on the successful operation of our geothermal, REG, solar PV power plants under the Electricity segment as well as our energy storage facilities, which are subject to various operational risks.
Current report
•Our exploration, development, and operation of geothermal energy resources are subject to geological risks and uncertainties, which may result in insufficient prospects to support our growth, decreased performance or increased costs for our power plants.
Current report
•We may decide not to implement, or may not be successful in implementing, one or more elements of our multi-year strategic plan, and the plan may not achieve its goal of enhancing shareholder value.
Current report
•Our investments in BESS technology involves new technologies and expected advanced technologies with relatively limited history with respect to reliability and performance and may not perform as expected. In addition, our investments and profitability may be negatively affected by a number of factors, including increases in storage costs, risk of fire and volatility in merchant prices.
Current report
•Concentration of customers, specific projects and regions may expose us to heightened financial exposure.
Current report
•Our international operations expose us to risks related to the application of foreign laws and regulations.
Current report
•Political, economic and other conditions in the emerging economies where we operate, including Israel, may subject us to greater risk than in the developed U.S. economy.
Current report
•Conditions in and around Israel, where the majority of our senior management and our main production and manufacturing facilities are located, including the ongoing military conflicts on the borders of Israel, may adversely affect our operations and may limit our ability to produce and sell our products, and support our Electricity segment.
Current report
•Responses in various countries where we have business operations to Israel’s ongoing war with Hamas and military conflicts on some of its borders or future similar conflicts may adversely affect our operations and may limit our ability to produce and sell our products.
Current report
•Reduction in our Products segment backlog may affect our ability to fully utilize our main production and manufacturing facilities.
Current report
•Some of our leases will terminate if we do not extract geothermal resources in “commercial quantities” or if we fail to comply with the terms or stipulations of such leases or any of the provisions of the Geothermal Steam Act or if the lessor under any such lease defaults on any debt secured by the relevant property, thus requiring us to enter into new leases or secure rights to alternate geothermal resources, none of which may be available on terms as favorable to us as any such terminated lease, if at all.
Current report
•Our business development activities may not be successful and our projects under construction or facilities undergoing enhancement and repowering may encounter delays.
Current report
•Our future growth depends, in part, on the successful enhancement of a number of our existing facilities.
Current report
•We rely on power transmission facilities that we do not own or control.
Current report
•Our use of joint ventures may limit our flexibility with jointly owned investments.
Current report
•Our operations could be adversely impacted by climate change.
Current report
•We could be negatively impacted by regulatory and other responses to climate change.
Current report
•We may not be able to successfully complete acquisitions, and we may not be able to successfully integrate, or realize anticipated synergies from, companies that we have acquired and may acquire in the future.
Current report
•We encounter intense competition from electric utilities, other power producers, power marketers, developers and third-party investors.
Current report
•Changes in costs and technology may significantly impact our business by making our power plants and products less competitive, resulting in our inability to sign new or recontracted PPAs for our Electricity segment and new supply and EPC contracts for our Products segment.
Current report
•Our intellectual property rights may not be adequate to protect our business.
Current report
•We may experience difficulties implementing and maintaining our new enterprise resource planning system.
Current report
•We may experience a cyber-incident, cyber security breach, severe natural event or physical attack on our operational networks and information technology systems.
Current report
•Our financial performance could be adversely affected by changes in the legal and regulatory environment affecting our operations.
Current report
•Pursuant to the terms of some of our PPAs with investor-owned electric utilities and publicly-owned electric utilities in states that have renewable portfolio standards, the failure to supply the contracted capacity and energy thereunder may result in the imposition of penalties.
Current report
•If any of our domestic power plants lose their current Qualifying Facility status under the U.S. Public Utility Regulatory Policies Act of 1978 (“PURPA”), or if amendments to PURPA are enacted that substantially reduce the benefits currently afforded to Qualifying Facilities, our domestic operations could be adversely affected.
Current report
•The reduction, elimination or inability to monetize government incentives could adversely affect our business, financial condition, future results and cash flows.
Current report
•We are a holding company and our cash depends substantially on the performance of our subsidiaries and the power plants they operate, most of which are subject to restrictions and taxation on dividends and distributions.
Current report
•The costs of compliance with federal, state, local and foreign environmental laws and our ability to obtain and maintain environmental permits and governmental approvals required for development, construction and/or operation may result in liabilities, costs and delays in construction (as well as any fines or penalties that may be imposed upon us in the event of any non-compliance or delays with such laws or regulations).
Current report
•We could be exposed to significant liability for violations of hazardous substances laws because of the use or presence of such substances at our power plants.
Current report
•U.S. federal, state and foreign country income tax reform could adversely affect us.
Current report
•We may be unable to obtain the financing we need on favorable terms to pursue our growth strategy and any future financing we receive may be less favorable to us than our current financing arrangements.
Current report
•We have incurred substantial indebtedness that may decrease our business flexibility, access to capital, and/or increase our borrowing costs, and we may still incur substantially more debt, which may adversely affect our operations and financial results.
Current report
•Our debt obligations may adversely affect our ability to raise additional capital and will be a burden on our future cash resources, particularly if we elect to settle these obligations in cash upon conversion or upon maturity or required repurchase.
Current report
•The capped call transactions, into which we entered in connection with the issuance of the June 2022 convertible notes, may affect the value of the Notes and our common stock and we are subject to counterparty risk with respect to the capped call transactions.
Current report
•Our foreign power plants and foreign manufacturing operations expose us to risks related to fluctuations in currency rates, which may reduce our profits from such power plants and operations.
Current report
•Our power plants have generally been financed through a combination of our corporate funds and limited or non-recourse project finance debt and lease financing. If our project subsidiaries default on their obligations under such limited or non-recourse debt or lease financing, we may be required to make certain payments to the relevant debt holders, and if the collateral supporting such leveraged financing structures is foreclosed upon, we may lose certain of our power plants.
Current report
•We may experience fluctuations in the costs of construction, raw materials, commodities and drilling.
Current report
•Our commodity derivative activity may limit potential gains, increase potential losses, result in earnings volatility and involve other risks.
Current report
•We are exposed to swap counterparty credit risk.
Showing the first 40 of 91 passages. Open the source sections for the rest.
Removed paragraphs (8)
Previous report
Electricity Segment
Previous report
Product Segment
Previous report
Energy Storage Segment
Previous report
Electricity Segment
Previous report
Product Segment
Previous report
Energy Storage Segment
Previous report
*Beowawe Upgrade (Nevada)**.*We are currently in the process of upgrading the Beowawe project that we recently acquired. We are planning to replace the old equipment with new advanced technology equipment that will add a net capacity of 9MW. Construction is near completion and commissioning activities commenced. Operation is expected in the third quarter of 2024.
Previous report
*Dominica (Dominica Island).*We are developing the 10MW Dominica power plant in the Caribbean country of Dominica under a BOT agreement. We recently signed a PPA with Dominica Electricity Services Ltd. Engineering, procurement and manufacturing activities are ongoing.We expect commercial operation by the fourth quarter of 2025.
Reworded paragraphs (55)
Previous wording
This quarterly report on Form 10-Q includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, included in this quarterly report 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 quarterly report on Form 10-Q, 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. The forward-looking statements in this quarterly report are primarily located in the material set forth under the headings “Management’s Discussion and Analysis of Financial Condition and Results of Operations”, “Risk Factors”, and “Notes to Condensed Consolidated Financial Statements”, but are found in other locations as well. These forward-looking statements generally relate to our plans, objectives and expectations for future operations and are based upon 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. You should read this quarterly report on Form 10-Q completely and with the understanding that actual future results and developments may be materially different from what we expect attributable to a number of risks and uncertainties, many of which are beyond our control.
Current wording
This quarterly report on Form 10-Q includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, included in this quarterly report 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 quarterly report on Form 10-Q, the words “may”, “will”, “could”, “should”, “expects”, “plans”, “anticipates”, “believes”, “estimates”, “predicts”, “projects”, “potential”, “contemplate”, or “target” 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. The forward-looking statements in this quarterly report are primarily located in the material set forth under the headings “Management’s Discussion and Analysis of Financial Condition and Results of Operations”, “Risk Factors”, and “Notes to Condensed Consolidated Financial Statements”, but are found in other locations as well. These forward-looking statements generally relate to our plans, objectives and expectations for future operations and are based upon 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. You should read this quarterly report on Form 10-Q completely and with the understanding that actual future results and developments may be materially different from what we expect attributable to a number of risks and uncertainties, many of which are beyond our control.
Previous wording
The following discussion and analysis of our financial condition and results of operations should be read together with our condensed consolidated financial statements and related notes included elsewhere in this quarterly report and the “Risk Factors” section of our Annual Report on Form 10-K for the year ended December 31, 2023 (the “2023 Annual Report”) and any updates contained herein as well as those set forth in our reports and other filings made with the Securities and Exchange Commission (the “SEC”).
Current wording
The following discussion and analysis of our financial condition and results of operations should be read together with our condensed consolidated financial statements and related notes included elsewhere in this quarterly report and the “Risk Factors” section of our Annual Report on Form 10-K for the year ended December 31, 2023 (the “2023 Annual Report”) and any updates contained herein as well as those set forth in our reports and other filings made with the SEC.
Previous wording
Our website is www.ormat.com. Information contained on our website is not part of this quarterly report. Information that we furnish to or file with the U.S. Securities and Exchange Commission (the “SEC”), including our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and any amendments to, or exhibits included in, these reports are made available for download, free of charge, through our website as soon as reasonably practicable. Our SEC filings, including exhibits filed therewith, are also available directly on the SEC’s website at www.sec.gov.
Current wording
Our website is www.ormat.com. Information contained on our website is not part of this quarterly report. Information that we furnish to or file with the SEC, including our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and any amendments to, or exhibits included in, these reports are made available for download, free of charge, through our website as soon as reasonably practicable. Our SEC filings, including exhibits filed therewith, are also available directly on the SEC’s website at www.sec.gov.
Previous wording
Our current generating portfolio of approximately 1.3 GW includes geothermal power plants in the United States, Kenya, Guatemala, Honduras, Guadeloupe and Indonesia, as well as energy storage facilities, recovered energy generation and Solar PV power plants in the United States.
Current wording
Our current generating portfolio of approximately 1.4 GW includes geothermal power plants in the United States, Kenya, Guatemala, Honduras, Guadeloupe and Indonesia, as well as energy storage facilities, recovered energy generation and Solar PV power plants in the United States.
Previous wording
For the three months ended March 31, 2024, 93.3% of our Electricity segment revenues were from PPAs with fixed energy rates, which are not affected by fluctuations in energy commodity prices. We have a variable price PPA in Hawaii, which provides for payments based on the local utilities’ avoided cost, which is the incremental cost that the power purchaser avoids by not having to generate such electrical energy itself or purchase it from others. In Hawaii, the prices paid for electricity pursuant to the 25 MW PPA for the Puna Complex in Hawaii change primarily as a result of variations in the price of oil as well as other commodities. In 2019, we signed a new PPA related to Puna with fixed prices, increased capacity and extended the term until 2052. In February 2024 the HPUC approved two final amendments to the PPA that we expect will be in effect by the end of 2026.
Current wording
For the six months ended June 30, 2024, 92.5% of our Electricity segment revenues were from PPAs with fixed energy rates, which are not affected by fluctuations in energy commodity prices. We have a variable price PPA in Hawaii, which provides for payments based on the local utilities’ avoided cost, which is the incremental cost that the power purchaser avoids by not having to generate such electrical energy itself or purchase it from others. In Hawaii, the prices paid for electricity pursuant to the 25 MW PPA for the Puna Complex in Hawai`i change primarily as a result of variations in the price of oil as well as other commodities. In 2019, we signed a new PPA related to Puna with fixed prices, increased capacity and extended the term until 2052. In February 2024 the HPUC approved two final amendments to the PPA that we expect will be in effect by the end of 2026.
Previous wording
Revenues attributable to our Product segment are based on the sale of equipment, engineering, procurement and construction contracts and the provision of various services to our customers. Product segment revenues vary from period to period because of the timing of our receipt of purchase orders and the progress of our equipment manufacturing and execution of the relevant project.
Current wording
Revenues attributable to our Product segment are based on the sale of equipment, engineering, procurement and construction contracts and the provision of various services to our customers, or as related to the Dominica project, under a BOT agreement with the Commonwealth of Dominica. Product segment revenues vary from period to period because of the timing of our receipt of purchase orders and the progress of our equipment manufacturing and execution of the relevant project.
Previous wording
In the three months ended March 31, 2024 and 2023, 32% and 31% of our total revenues, respectively, were derived from foreign locations. Our foreign operations had higher Electricity gross margins than our U.S. operations in each of those periods. A substantial portion of Electricity international revenues came from Kenya and to a lesser extent, from Honduras, Guadeloupe and Guatemala. Our operations in Kenya contributed disproportionately to gross profit and net income. The contribution to combined pre-tax income of our domestic and foreign operations within our Electricity segment and Product segment differ in a number of ways.
Current wording
In the six months ended June 30, 2024 and 2023, 35% and 36% of our total revenues, respectively, were derived from foreign locations. In the three months ended June 30, 2024 and 2023, 39% and 41% of our total revenues, respectively, were derived from foreign locations. Our foreign operations had higher Electricity gross margins than our U.S. operations in each of those periods. A substantial portion of Electricity foreign revenues came from Kenya and to a lesser extent, from Honduras, Guadeloupe and Guatemala. Our operations in Kenya contributed disproportionately to gross profit and net income. The contribution to combined pre-tax income of our domestic and foreign operations within our Electricity segment and Product segment differ in a number of ways, as summarized below.
Previous wording
Electricity Segment. Our Electricity segment domestic revenues were approximately 75% and 72% of our total Electricity segment for the three months ended March 31, 2024 and 2023, respectively. However, domestic operations have higher costs of revenues and expenses than our foreign operations. Our foreign power plants are located in lower-cost regions, like Kenya, Guatemala, Honduras and Guadeloupe, which favorably impact payroll, and maintenance expenses among other items. Our power plants in foreign locations are also newer than most of our domestic power plants and therefore tend to have lower maintenance costs and higher availability factors than our domestic power plants. Consequently, in the three months ended March 31, 2024 and 2023, the international operations of the segment accounted for 33% and 40% of our total gross profits, 51% and 54% of our net income (assuming the majority of corporate operating expenses and financing are recorded under our domestic jurisdiction) and 29% and 35% of our EBITDA, respectively.*** ***
Current wording
Electricity Segment. Our Electricity segment domestic revenues were approximately 74% and 70% of our total Electricity segment revenues for the six months ended June 30, 2024 and 2023, respectively, and 72% and 68% of our total Electricity segment revenues for the three months ended June 30, 2024 and 2023. Our Electricity segment foreign revenues were approximately 26% and 30% of our total Electricity segment revenues for the six months ended June 30, 2024 and 2023, respectively, and 28% and 32% of our total Electricity segment revenues for the three months ended June 30, 2024 and 2023.However, domestic operations have higher costs of revenues and expenses than our foreign operations. Our foreign power plants are located in lower-cost regions, like Kenya, Guatemala, Honduras and Guadeloupe, which favorably impact payroll, maintenance expenses and other items. Our power plants in foreign locations are also newer than most of our domestic power plants and therefore tend to have lower maintenance costs and higher availability factors than our domestic power plants. Consequently, in the six months ended June 30, 2024 and 2023, our foreign operations of the segment accounted for 37% and 48% of our total gross profits, 74% and 73% of our net income (assuming the majority of corporate operating expenses and financing are recorded under our domestic jurisdiction) and 31% and 39% of our EBITDA, respectively.
Previous wording
Product Segment. Our Product segment foreign revenues were approximately 96% and 86% of our total Product segment revenues for the three months ended March 31, 2024 and 2023, respectively.
Current wording
Product Segment. Our Product segment foreign revenues were approximately 96% and 92% of our total Product segment revenues for the six months ended June 30, 2024 and 2023, respectively.
Previous wording
*Energy Storage Segment.*Our Energy Storage segment domestic revenues were 100% of our total Energy storage segment revenues for each of the three months ended March 31, 2024 and 2023.
Current wording
Energy Storage Segment. Our Energy Storage segment domestic revenues were 100% of our total Energy storage segment revenues for each of the three and six months ended June 30, 2024 and 2023.
Previous wording
Revenues attributable to our Electricity segment for the three months ended March 31, 2024 were $191.3 million, compared to $170.3 million for the three months ended March 31, 2023. This increase of $20.9 million was mainly attributable to: (i) $9.4 million related to the geothermal and solar power plants included in the Enel purchase transaction which were consolidated by the Company starting the first quarter of 2024; (ii) $6.2 million related to the Heber 1 power plant which resumed operations in May 2023 after a temporary shutdown due to a fire incident that occurred in February 2022; (iii) $3.6 million related to the North Valley power plant which started commercial operations in April 2023; and (iv) $4.2 million related to the Puna power plant due to its higher generation in 2024. This increase was partially offset by lower revenues in smaller amounts at a number of other power plants.
Current wording
Revenues attributable to our Electricity segment for the three months ended June 30, 2024 were $166.2 million, compared to $155.3 million for the three months ended June 30, 2023. This increase of $10.9 million was mainly attributable to: (i) $8.6 million related to the geothermal and solar power plants included in the Enel purchase transaction which were consolidated by the Company starting the first quarter of 2024; (ii) $4.3 million related to the Heber 1 power plant which resumed operations in May 2023 after a temporary shutdown due to a fire incident that occurred in February 2022; and (iii) $5.1 million related to the Puna power plant due to its higher power generation in 2024. This increase was partially offset by lower revenues of $3.6 million in the Dixie Valley power plant due to an unscheduled outage, as well as decreases in power generation in lesser amounts at a number of other power plants.
Previous wording
Revenues attributable to our Product segment for the three months ended March 31, 2024 were $24.8 million, compared to $10.0 million for the three months ended March 31, 2023. This increase of $14.8 million, or 147.3%, is primarily related to the progress in our projects and timing of when revenues are recognized during the period. During the three months ended March 31, 2024, Product revenues included projects primarily in New Zealand and Indonesia, compared to projects in New Zealand, Nicaragua and Indonesia for which revenues were recognized during the three months ended March 31, 2023.
Current wording
Revenues attributable to our Product segment for the three months ended June 30, 2024 were $37.8 million, compared to $33.5 million for the three months ended June 30, 2023. This increase of $4.4 million, or 13.1%, is primarily related to the progress in our projects and timing of when revenues are recognized during the period. During the three months ended June 30, 2024, Product revenues included projects primarily in New Zealand and Dominica, and during the three months ended June 30, 2023, Product revenues included projects primarily in New Zealand, Indonesia and the Philippines.
Previous wording
Revenues attributable to our Energy Storage segment for the three months ended March 31, 2024 were $8.1 million compared to $4.9 million for the three months ended March 31, 2023. This increase is related to the new energy storage facilities which commenced commercial operation during 2023, primarily Andover in June 2023 and Pomona 2 in July 2023, as well as higher energy rates at PJM Interconnection, LLC (“PJM”) and California Independent System Operator “(CAISO”) facilities in the three months ended March 31, 2024 compared to the same period in the previous year.
Current wording
Revenues attributable to our Energy Storage segment for the three months ended June 30, 2024 were $8.9 million compared to $6.0 million for the three months ended June 30, 2023. This increase is primarily related to the new energy storage facilities which commenced commercial operation during 2023, primarily Andover in June 2023 and Pomona 2 in July 2023, as well as the East Flemington energy storage facility which commenced commercial operations during the first quarter of 2024.
Previous wording
Total cost of revenues attributable to our Product segment for the three months ended March 31, 2024 was $21.2 million, compared to $9.4 million for the three months ended March 31, 2023, which represented a 126.2% increase. This increase is primarily attributable to the increase in Product segment revenues, as discussed above. As a percentage of total Product segment revenues, our total cost of revenues attributable to our Product segment for the three months ended March 31, 2024 and 2023, was 85.2% and 93.1%, respectively, which results from different profitability of the different projects.
Current wording
Total cost of revenues attributable to our Product segment for the three months ended June 30, 2024 was $32.7 million, compared to $30.0 million for the three months ended June 30, 2023, which represented a 8.9% increase. This increase is primarily attributable to the increase in Product segment revenues, as discussed above. As a percentage of total Product segment revenues, total cost of revenues attributable to our Product segment for the three months ended June 30, 2024, and 2023, was 86.3% and 89.6%, respectively, which results from the different profitability of the different projects included in each period.
Previous wording
Cost of revenues attributable to our Energy Storage segment for the three months ended March 31, 2024 were $7.5 million compared to $5.1 million for the three months ended March 31, 2023. This increase is related to the corresponding increase in Energy Storage revenues as described above.
Current wording
Cost of revenues attributable to our Energy Storage segment for the three months ended June 30, 2024 were $8.4 million compared to $5.9 million for the three months ended June 30, 2023. This increase is primarily related to the corresponding increase in Energy Storage revenues as described above.
Previous wording
Research and development expenses for the three months ended March 31, 2024 were $1.6 million, compared to $1.3 million for the three months ended March 31, 2023. The increase in research and development expenses, net is primarily related to the timing of inputs invested in such related projects.
Current wording
Research and development expenses for the three months ended June 30, 2024 were $1.7 million, compared to $2.1 million for the three months ended June 30, 2023. The decrease in research and development expenses, net is primarily related to the timing of when we invest in such related projects.
Previous wording
Selling and marketing expenses for the three months ended March 31, 2024 were $5.1 million compared to $3.9 million for the three months ended March 31, 2023. Selling and marketing expenses for the three months ended March 31, 2024 and 2023 constituted 2.3% and 2.1% of total revenues, respectively.
Current wording
Selling and marketing expenses for the three months ended June 30, 2024 were $4.2 million compared to $5.4 million for the three months ended June 30, 2023. Selling and marketing expenses for the three months ended June 30, 2024 and 2023 constituted 2.0% and 2.8% of total revenues, respectively.
Previous wording
Interest expense, net for the three months ended March 31, 2024 was $31.0 million, compared to $23.6 million for the three months ended March 31, 2023. This increase of $7.3 million was primarily attributable to interest cost relating to loan agreements entered into during, or subsequent to, the first quarter of 2023 such as: (i) the Mizrahi 2023 Loan entered into in November 2023; (ii) the Hapoalim 2023 Loan entered into in February 2023; (iii) the short-term commercial paper entered into in October 2023; (iv) the Hapoalim 2024 Loan entered into in January 2024; and (v) the HSBC Bank 2024 Loan entered into in January 2024. This increase was partially offset by lower interest expenses on other existing loans as a result of scheduled payments.
Current wording
Interest expense, net for the three months ended June 30, 2024 was $33.7 million, compared to $24.4 million for the three months ended June 30, 2023. This increase of $9.3 million was primarily attributable to interest costs relating to loan agreements entered into during, or subsequent to, the second quarter of 2023 such as: (i) the Mizrahi 2023 Loan entered into in November 2023; (ii) the Hapoalim 2023 Loan entered into in February 2023; (iii) the short-term commercial paper entered into in October 2023; (iv) the Hapoalim 2024 Loan entered into in January 2024; (v) the HSBC Bank 2024 Loan entered into in January 2024; (vi) the Mammoth Senior Secured Notes entered into in March 2024; (vii) the DEG 4 Loan entered into in April 2024; and (viii) the Discount 2024 Loan entered into in May 2024. This increase was partially offset by lower interest expenses on other existing loans as a result of scheduled payments.
Previous wording
Derivatives and foreign currency transaction gains and losses for the three months ended March 31, 2024 was a loss of $1.6 million, compared to $1.9 million for the three months ended March 31, 2023. Derivatives and foreign currency transaction gains (losses) primarily includes losses from foreign currency forward contracts which were not accounted for as hedge transactions and impact of changes in the foreign currency exchange rate against the U.S. Dollar.
Current wording
Derivatives and foreign currency transaction gains and losses for the three months ended June 30, 2024 was a loss of $0.3 million, compared to a loss of $1.3 million for the three months ended June 30, 2023. Derivatives and foreign currency transaction gains (losses) primarily includes losses from foreign currency forward contracts which were not accounted for as hedge transactions, and impact of changes in the foreign currency exchange rate against the U.S. Dollar.
Previous wording
Income attributable to the sale of tax benefits for the three months ended March 31, 2024 was $17.5 million, compared to $12.6 million for the three months ended March 31, 2023. This income primarily represents the value of production tax credits (“PTCs”) and taxable income or loss generated by certain of our power plants allocated to investors under tax equity transactions. This increase of $4.9 million is primarily related to the North Valley tax equity transaction entered into in October 2023, and income related to the expected sale of transferable production tax credits under the new IRA regulations of $4.4 million in the three months ended March 31, 2024 that are primarily related to the Heber 1 power plant, compared to $1.8 million in the three months ended March 31, 2023.
Current wording
Income attributable to the sale of tax benefits for the three months ended June 30, 2024 was $15.8 million, compared to $15.0 million for the three months ended June 30, 2023. This income primarily represents the value of production tax credits (“PTCs”) and taxable income or loss generated by certain of our power plants allocated to investors under tax equity transactions. This increase of $0.8 million is primarily related to the North Valley tax equity transaction entered into in October 2023, and to income related to the expected sale of transferable production tax credits under the new IRA regulations of $3.6 million in the three months ended June 30, 2024, that is primarily related to the Heber 1 power plant, compared to $2.7 million in the three months ended June 30, 2023. This increase was partially offset by lower generation of PTC's by other tax equity transactions.
Previous wording
Other non-operating income (expense), net for the three months ended March 31, 2024 was income of $0.0 million, compared to $0.1 million for the three months ended March 31, 2023.
Current wording
Other non-operating income (expense), net for the three months ended June 30, 2024 was income of $0.1 million, compared to $0.1 million for the three months ended June 30, 2023.
Previous wording
Equity in earnings of investees, net for the three months ended March 31, 2024 was earnings of $0.8 million, compared to $0.3 million for the three months ended March 31, 2023. Equity in earnings (losses) of investees, net is derived from our 12.75% share in the earnings or losses in the Sarulla Consortium ("Sarulla") and our 49% share in the earnings or losses in the Ijen geothermal project. In the second quarter of 2022, Sarulla agreed with its banks on a framework that will enable it to perform remediation works that are aimed to restore the power plants' performance. The outcome of the first phase of the recovery plan is under evaluation towards the decision regarding the implementation of the second phase. As we determined that the current situation and circumstances related to our equity method investment in Sarulla are temporary, no impairment testing was required for the period.
Current wording
Equity in earnings of investees, net for the three months ended June 30, 2024 was earnings of $1.2 million, compared to $2.0 million for the three months ended June 30, 2023. Equity in earnings (losses) of investees, net is derived from our 12.75% share in the earnings or losses in the Sarulla Consortium ("Sarulla") and our 49% share in the earnings or losses in the Ijen geothermal project. In the second quarter of 2022, Sarulla agreed with its banks on a framework that will enable it to perform remediation works that are aimed to restore the power plants' performance. The first phase of the recovery plan included the drilling of an additional production well that was successful, and certain modifications to surface equipment that are still underway. Following the positive indications from the first phase, during the second quarter of 2024, Sarulla commenced discussions with the banks towards implementation of the additional phases. As we determined that the current situation and circumstances related to our equity method investment in Sarulla are temporary, no impairment testing was required for the period.
Previous wording
Net income attributable to the Company’s stockholders for the three months ended March 31, 2024 was $38.6 million, compared to $29.0 million for the three months ended March 31, 2023, which represents an increase of $9.6 million. This increase was attributable to an increase of $6.9 million in net income which was affected by the explanations described above, and an decrease of $2.7 million in net income attributable to noncontrolling interest in the three months ended March 31, 2024, compared to the three months ended March 31, 2023.
Current wording
Net income attributable to the Company’s stockholders for the three months ended June 30, 2024 was $22.2 million, compared to $24.2 million for the three months ended June 30, 2023, which represents a decrease of $1.9 million. This decrease is attributable to a decrease of $0.5 million in net income which was affected by the explanations described above, and an increase of $1.4 million in net income attributable to noncontrolling interest in the three months ended June 30, 2024, compared to the three months ended June 30, 2023, which is primarily related to the noncontrolling share in the net results of the Puna power plant.
Previous wording
Power generation in our power plants increased by 7.9% from 1,881,942 MWh in the three months ended March 31, 2023 to 2,029,849 MWh in the three months ended March 31, 2024. 71% of the increase was derived from the recent acquired assets from EGPNA.
Current wording
Power generation in our power plants increased by 5.1% from 3,577,338 MWh in the six months ended June 30, 2023 to 3,761,131 MWh in the six months ended June 30, 2024.
Previous wording
Total cost of revenues attributable to our Electricity segment for the three months ended March 31, 2024 was $116.7 million, compared to $94.8 million for the three months ended March 31, 2023. This increase of $22.0 million was primarily attributable to: (i) $6.0 million related to the geothermal and solar power plants included in the Enel purchase transaction which were consolidated by the Company starting the first quarter of 2024; (ii) $6.7 million income from business interruption insurance proceeds related to the Puna power plant as a result of the damage caused by the Kilauea volcano eruption in May 2018, and which were included in 2023 compared to none in 2024; (iii) $1.9 million related to the North Valley power plant which started commercial operations in April 2023; and (iv) $3.4 million higher costs in Kenya and Guadeloupe, primarily due to higher depreciation resulting from capital investment projects in these two locations.
Current wording
Total cost of revenues attributable to our Electricity segment for the six months ended June 30, 2024 was $227.2 million, compared to $204.2 million for the six months ended June 30, 2023. This increase of $23.1 million is primarily attributable to: (i) $12.4 million related to the geothermal and solar power plants included in the Enel purchase transaction which were consolidated by the Company starting the first quarter of 2024; (ii) $6.3 million of income from business interruption insurance proceeds related to the Puna power plant as a result of the damage caused by the Kilauea volcano eruption in May 2018, which were included in 2023, compared to none in 2024; and (iii) $2.9 million related to the start of commercial operation of North Valley in April 2023.
Previous wording
Our total Electricity segment cost of revenues for the three months ended March 31, 2024 was 61.0% of Electricity revenues, compared to 55.6% for the three months ended March 31, 2023, including the impact from business interruption insurance proceeds as described above. The cost of revenues attributable to our international power plants for the three months ended March 31, 2024 was 18.1% of our total Electricity segment cost of revenues for this period compared to 18.3% for the same period in the prior year.
Current wording
Our total Electricity segment cost of revenues for the six months ended June 30, 2024 was 63.6% of Electricity revenues, compared to 62.7% for the six months ended June 30, 2023, including the impact from business interruption insurance proceeds described above. The cost of revenues attributable to our international power plants for the six months ended June 30, 2024 was 18.6% of our total Electricity segment cost of revenues for this period, compared to 18.0% for the same period in the prior year.
Previous wording
General and administrative expenses for the three months ended March 31, 2024 were $19.5 million compared to $17.7 million for the three months ended March 31, 2023. General and administrative expenses for the three months ended March 31, 2024 and 2023 constituted 8.7% and 9.5% of total revenues, respectively. The increase in general and administrative expenses is primarily attributable to timing of incurring services, including $1.3 million related to the Enel purchase transaction incurred in the first quarter of 2024, as well as higher amortization of stock options costs.
Current wording
General and administrative expenses for the six months ended June 30, 2024 were $37.6 million compared to $35.5 million for the six months ended June 30, 2023. The increase of $2.1 million in general and administrative expenses is primarily attributable to the timing of when we incur services, including $1.3 million in expenses related to the Enel purchase transaction incurred in the first quarter of 2024, as well as higher amortization of stock-based compensation costs.
Previous wording
Interest Income for the three months ended March 31, 2024 was $1.8 million, compared to $1.9 million for the three months ended March 31, 2023. Interest income is primarily related to interest incurred on cash and cash equivalents held by the Company during the period.
Current wording
Interest Income for the six months ended June 30, 2024 was $4.4 million, compared to $6.8 million for the six months ended June 30, 2023. Interest income is primarily related to interest earned on cash and cash equivalents held by the Company during the period.
Previous wording
Income tax benefit for the three months ended March 31, 2024 was $0.1 million compared to income tax provision of $8.9 million for the three months ended March 31, 2023. Our effective tax rate for the three months ended March 31, 2024 and 2023, was (0.4)% and 21.1%, respectively. The effective rate differs from the federal statutory rate of 21% primarily due to the generation of investment tax credits of $11.5 million, and the jurisdictional mix of earnings at differing tax rates.
Current wording
Income tax benefit for the six months ended June 30, 2024 was $3.3 million compared to income tax provision of $4.9 million for the six months ended June 30, 2023. Our effective tax rate for the six months ended June 30, 2024 and 2023, was (5.6)% and 8.1%, respectively. The effective rate differs from the federal statutory rate of 21% for the six months ended June 30, 2024 primarily due to the generation of investment tax credits of $17.7 million, and the jurisdictional mix of earnings at differing tax rates.
Previous wording
As of March 31, 2024, we had access to (i) $201.5 million in cash and cash equivalents, of which $55.9 million is held by our foreign subsidiaries; and (ii) $324.3 million of unused corporate borrowing capacity under existing committed lines for credit and letters of credit with different commercial banks.
Current wording
As of June 30, 2024, we had access to (i) $66.3 million in cash and cash equivalents, of which $55.6 million is held by our foreign subsidiaries; and (ii) $399.5 million of unused corporate borrowing capacity under existing committed lines for credit and letters of credit with different commercial banks.
Previous wording
Our estimated capital needs for the remainder of 2024 include $472.0 million for capital expenditures on new projects under development or construction including energy storage projects, exploration activity and maintenance capital expenditures for our existing projects. In addition, $163.3 million will be needed for long-term debt repayment.
Current wording
Our estimated capital needs for the remainder of 2024 include $292.0 million for capital expenditures on new projects under development or construction including energy storage projects, exploration activity and maintenance capital expenditures for our existing projects. In addition, $96.7 million will be needed for long-term debt repayment.
Previous wording
As of March 31, 2024, we continue to maintain our assertion to no longer indefinitely reinvest foreign funds held by our foreign subsidiaries, and have accrued the incremental foreign withholding taxes. Accordingly, during the three months ended March 31, 2024, we included a foreign income tax expense of $0.4 million related to foreign withholding taxes on accumulated earnings of all of our foreign subsidiaries.
Current wording
As of June 30, 2024, we continue to maintain our assertion to no longer indefinitely reinvest foreign funds held by our foreign subsidiaries, and have accrued the incremental foreign withholding taxes. Accordingly, during the six months ended June 30, 2024, we included a foreign income tax expense of $0.8 million related to foreign withholding taxes on accumulated earnings of all of our foreign subsidiaries.
Previous wording
As described under Note 1 to the condensed consolidated financial statements, on January 2, 2024, the Company entered into two definitive loan agreements with Hapoalim Bank and with HSBC Bank under which these banks provided for two separate loans in an aggregate principal amount of $75 million, and $125 million, respectively. In addition, on March 28, 2024, a wholly owned indirect subsidiary of the Company entered into a note purchase agreement with the Prudential Insurance Company of America, pursuant to which it issued $135 million principal amount of senior secured notes. In addition, as further described under Note** **11, Subsequent Events, to the condensed consolidated financial statements, on April 4, 2024, the Company, through one of the its fully owned subsidiary, entered into a new $30 million subordinated loan agreement with DEG, and on April 18, 2024, it completed a drawdown of the full loan amount of $30 million.
Current wording
As described under Note 1 to the condensed consolidated financial statements, the Company entered into new loan agreements as follows: (i) on January 2, 2024, the Company entered into two definitive loan agreements with Hapoalim Bank and with HSBC Bank under which these banks provided for two separate loans in an aggregate principal amount of $75 million, and $125 million, respectively; (ii) on March 28, 2024, a wholly-owned indirect subsidiary of the Company entered into a note purchase agreement with the Prudential Insurance Company of America, pursuant to which it issued $135.1 million principal amount of senior secured notes; (iii) on April 4, 2024, the Company, through one of the its fully owned subsidiaries, entered into a new $30 million subordinated loan agreement with DEG, and on April 18, 2024, it completed a drawdown of the full loan amount of $30 million; and (iv) on May 22, 2024, The Company entered into a definitive loan agreement with Discount Bank for an aggregated amount of $31.8 million.
Previous wording
Our obligations under the credit agreements, the loan agreements, and the trust instrument governing the bonds described above, are unsecured, but we are subject to a negative pledge in favor of the banks and the other lenders and certain other restrictive covenants. These include, among other things, restraints on: (i) creating any floating charge or any permanent pledge, charge or lien over our assets without obtaining the prior written approval of the lender; (ii) guaranteeing the liabilities of any third party without obtaining the prior written approval of the lender; and (iii) selling, assigning, transferring, conveying or disposing of all or substantially all of our assets, or a change of control in our ownership structure. Some of the credit agreements, the term loan agreements, and the trust instrument contain cross-default provisions with respect to other material indebtedness owed by us to any third party. In some cases, we have agreed to maintain certain financial ratios, which are measured quarterly, such as: (i) equity of at least $750 million and in no event less than 25% of total assets; and (ii) 12-month debt, net of cash, cash equivalents, and short-term bank deposits to Adjusted EBITDA ratio not to exceed 6.0. As of March 31, 2024: (i) total equity was $2,476.5 million and the actual equity to total assets ratio was 44.9% and (ii) the 12-month debt, net of cash, cash equivalents, to Adjusted EBITDA ratio was 4.13. During the three months ended March 31, 2024, we distributed interim dividends in an aggregate amount of $7.2 million. The failure to perform or observe any of the covenants set forth in such agreements, subject to various cure periods, would result in the occurrence of an event of default and would enable the lenders to accelerate all amounts due under each such agreement.
Current wording
Our obligations under the credit agreements, the loan agreements, and the trust instrument governing the bonds described above, are unsecured, but we are subject to a negative pledge in favor of the banks and the other lenders and certain other restrictive covenants. These include, among other things, restraints on: (i) creating any floating charge or any permanent pledge, charge or lien over our assets without obtaining the prior written approval of the lender; (ii) guaranteeing the liabilities of any third party without obtaining the prior written approval of the lender; and (iii) selling, assigning, transferring, conveying or disposing of all or substantially all of our assets, or a change of control in our ownership structure. Some of the credit agreements, the term loan agreements, and the trust instrument contain cross-default provisions with respect to other material indebtedness owed by us to any third party. In some cases, we have agreed to maintain certain financial ratios, which are measured quarterly, such as: (i) equity of at least $750 million and in no event less than 25% of total assets; and (ii) 12-month debt, net of cash, cash equivalents, and short-term bank deposits to Adjusted EBITDA ratio not to exceed 6.0. As of June 30, 2024: (i) total equity was $2,497.3 million and the actual equity to total assets ratio was 45.3% and (ii) the 12-month debt, net of cash, cash equivalents, to Adjusted EBITDA ratio was 4.17. During the six months ended June 30, 2024, we distributed interim dividends in an aggregate amount of $14.6 million. The failure to perform or observe any of the covenants set forth in such agreements, subject to various cure periods, would result in the occurrence of an event of default and would enable the lenders to accelerate all amounts due under each such agreement.
Previous wording
Our third-party debt consists of (i) non-recourse and limited-recourse project finance debt or acquisition financing debt that we or our subsidiaries have obtained for the purpose of developing and constructing, refinancing or acquiring our various projects; (ii) full-recourse debt incurred by us or our subsidiaries for general corporate purposes; (iii) financing liability related to the business combination purchase transaction of the Terra-Gen geothermal assets; (iv) convertible senior notes issued in the second quarter of 2022; and (v) short term revolving credit lines with banks.
Current wording
Our third-party debt consists of (i) non-recourse and limited-recourse project finance debt or acquisition financing debt that we or our subsidiaries have obtained for the purpose of developing and constructing, refinancing or acquiring our various projects; (ii) full-recourse debt incurred by us or our subsidiaries for general corporate purposes; (iii) financing liability related to the business combination purchase transaction of the Terra-Gen geothermal assets; (iv) convertible senior notes issued in the second quarter of 2022; (v) commercial paper; and (vi) short term revolving credit lines with banks.
Previous wording
The financing liability is related to the business combination purchase transaction of the Terra-Gen geothermal assets. The financing liability outstanding amount as of March 31, 2024 is $223.3 million. The fianacing liability bears a fixed interest rate of 6.12% per annum, principal and interest are payable semi-annually, and it matures in June 2038.
Current wording
The financing liability is related to the business combination purchase transaction of the Terra-Gen geothermal assets. The financing liability outstanding amount as of June 30, 2024 is $223.3 million. The financing liability bears a fixed interest rate of 6.08% per annum, principal and interest are payable semi-annually, and it matures in June 2038.
Previous wording
The convertible senior notes ("Notes") were issued in June 2022. The Notes bear annual interest of 2.5%, payable semiannually in arrears on January 15 and July 15 of each year, beginning on January 15, 2023. The Notes mature on July 15, 2027, unless earlier converted, redeemed or repurchased and the outstanding aggregate amount of the Notes as of March 31, 2024 is $431.3 million.
Current wording
The Convertible Senior Notes ("Notes") due 2027 (“Existing Convertible Notes”) were issued in June 2022. The Existing Convertible Notes bear annual interest at a rate of 2.5%, payable semiannually in arrears on January 15 and July 15 of each year, beginning on January 15, 2023. The Existing Convertible Notes mature on July 15, 2027, unless earlier converted, redeemed or repurchased and the outstanding aggregate amount of the Notes as of June 30, 2024 is $431.3 million. On July 15, 2024, the Company issued an additional $45.2 million aggregate principal amount of its 2.50% Convertible Senior Notes due 2027 as further described under Note 11 to the condensed consolidated financial statements.
Previous wording
The Company has a liability associated with unrecognized tax benefits and related interest and penalties in the amount of approximately $9.3 million as of March 31, 2024. This liability is included in long-term liabilities in our condensed consolidated balance sheet because we generally do not anticipate that settlement of the liability will require payment of cash within the next twelve months. We are not able to reasonably estimate when we will make any cash payments required to settle this liability.
Current wording
The Company has a liability associated with unrecognized tax benefits and related interest and penalties in the amount of approximately $7.5 million as of June 30, 2024. This liability is included in long-term liabilities in our condensed consolidated balance sheet because we generally do not anticipate that settlement of the liability will require payment of cash within the next twelve months. We are not able to reasonably estimate when we will make any cash payments required to settle this liability.
Previous wording
Net cash provided by operating activities for the three months ended March 31, 2024 was $115.2 million, compared to $56.5 million for the three months ended March 31, 2023, representing an increase of $58.8 million. Net cash provided by operating activities for the three months ended March 31, 2024 was primarily attributable to higher net income, adjusted for certain non-cash items, and a cash inflow related to the net decrease in trade receivables of $57.2 million, due to timing of collection from our customers. This was partially offset by (i) a net decrease in accounts payable and accrued expenses of $16.3 million as a result of timing of payments to our suppliers; (ii) a net increase of $2.5 million in costs and estimated earnings in excess of billings on uncompleted contracts and billings in excess of costs and estimated earnings on uncompleted contracts, as a result of timing of billing to our customers; (iii) an increase in inventories of $8.8 million, primarily related to timing of allocating costs to projects under construction; and (iv) an increase in prepaid expenses and other of $3.7 million, primarily related to timing of prepayments to suppliers and governmental authorities. Net cash provided by operating activities for the three months ended March 31, 2023 was primarily attributable to net income of $33.5 million for the period, adjusted for certain non-cash items, and by: (i) a net increase in receivables of $26.6 million, primarily related to timing of collection from our customers; (ii) an increase in inventories of $22.6 million, primarily related to timing of allocating costs to projects under construction; and (iii) an increase in prepaid expenses and others of $15.9 million due to timing of prepayments to suppliers and governmental authorities. This was partially offset by (i) a net increase in accounts payable and accrued expenses of $22.2 million, primarily as a result of timing of payments to our suppliers; and (ii) a net increase of $15.1 million in costs and estimated earnings in excess of billings on uncompleted contracts and billings in excess of costs and estimated earnings on uncompleted contracts, as a result of timing of billing to our customers.
Current wording
Net cash provided by operating activities for the six months ended June 30, 2024 was $145.9 million, compared to $130.5 million for the six months ended June 30, 2023, representing an increase of $15.4 million. Net cash provided by operating activities for the six months ended June 30, 2024 was primarily attributable to higher net income, adjusted for certain non-cash items, and a cash inflow related to the net decrease in trade receivables of $53.1 million, due to timing of collection from our customers. This was partially offset by (i) a net decrease in accounts payable and accrued expenses of $42.8 million as a result of timing of payments to our suppliers; (ii) a net increase of $13.7 million in costs and estimated earnings in excess of billings on uncompleted contracts and billings in excess of costs and estimated earnings on uncompleted contracts, as a result of timing of billing to our customers; and (iii) an increase in prepaid expenses and other of $14.0 million, primarily related to timing of prepayments to suppliers and governmental authorities. Net cash provided by operating activities for the six months ended June 30, 2023 was primarily attributable to net income of $58.0 million for the period, adjusted for certain non-cash items, and by: (i) a net increase in accounts payable and accrued expenses of $25.0 million, primarily as a result of timing of payments to our suppliers; (ii) a net decrease of $4.5 million in costs and estimated earnings in excess of billings on uncompleted contracts and billings in excess of costs and estimated earnings on uncompleted contracts, as a result of timing of billing to our customers; and (iii) a net increase of $11.4 million in other long-term liabilities primarily related to a prepayment made by one of our customers. This was partially offset by (i) an increase in inventories of $15.1 million, primarily related to timing of allocating costs to projects under construction; (ii) a net increase in receivables of $29.6 million, primarily related to timing of collection from our customers; and (iii) an increase in prepaid expenses and others and deposits and other of $4.3 million and $5.2 million, respectively, due to timing of prepayments to suppliers and governmental authorities and making deposits for various projects.
Previous wording
Net cash used in investing activities for the three months ended March 31, 2024 was $377.8 million, compared to $111.2 million for the three months ended March 31, 2023. The principal factors that affected our net cash used in investing activities during the three months ended March 31, 2024 and 2023 were: (i) cash paid for the business acquisition of Enel of $274.6 million during the three months ended March 31, 2024, compared to none in the same period of the prior year, as further described under Note 1 to the condensed consolidated financial statements; and (ii) capital expenditures of $103.4 million during the three months ended March 31, 2024, compared to $106.9 million, in the same period of the prior year, primarily for our facilities under construction that support our growth plan.
Current wording
Net cash used in investing activities for the six months ended June 30, 2024 was $525.0 million, compared to $274.9 million for the six months ended June 30, 2023. The principal factors that affected our net cash used in investing activities during the six months ended June 30, 2024 and 2023 were: (i) cash paid for the business acquisition of Enel of $274.6 million during the six months ended June 30, 2024, compared to none in the same period of the prior year, as further described under Note 1 to the condensed consolidated financial statements; and (ii) capital expenditures of $250.2 million during the six months ended June 30, 2024, compared to $266.7 million, in the same period of the prior year, primarily for our facilities under construction that support our growth plan.
Showing the first 40 of 55 pairs. Open the source sections for the rest.
Rearranged current paragraphs (16)
Current report — wording carried from elsewhere
Our total Electricity segment cost of revenues for the three months ended June 30, 2024 was 66.5% of Electricity revenues, compared to 70.4% for the three months ended June 30, 2023. The cost of revenues attributable to our international power plants for the three months ended June 30, 2024 was 19.1% of our total Electricity segment cost of revenues for this period compared to 17.8% for the same period in the prior year.
Current report — wording carried from elsewhere
General and administrative expenses for the three months ended June 30, 2024 were $18.0 million compared to $17.8 million for the three months ended June 30, 2023. General and administrative expenses for the three months ended June 30, 2024 and 2023 constituted 8.5% and 9.1% of total revenues, respectively. The increase in general and administrative expenses is primarily attributable to the timing of when we incur services from vendors.
Current report — wording carried from elsewhere
Write-off of unsuccessful exploration activities
Current report — wording carried from elsewhere
Income tax benefit for the three months ended June 30, 2024 was $3.2 million compared to income tax benefit of $4.0 million for the three months ended June 30, 2023. Our effective tax rate for the three months ended June 30, 2024 and 2023, was (16.3)% and (21.3)%, respectively. The effective rate differs from the federal statutory rate of 21% primarily due to the generation of investment tax credits of $6.2 million, and $9.0 million for the three months ended June 30, 2024 and 2023, respectively, and the jurisdictional mix of earnings at differing tax rates.
Current report — wording carried from elsewhere
Revenues attributable to our Electricity segment for the six months ended June 30, 2024, were $357.5 million, compared to $325.6 million for the six months ended June 30, 2023. The increase of $31.8 million in our Electricity segment revenues was mainly attributable to: (i) $18.0 million related to the geothermal and solar power plants included in the Enel purchase transaction which were consolidated by the Company starting the first quarter of 2024; (ii) $10.5 million related to the Heber 1 power plant which resumed operations in May 2023 after a temporary shutdown due to a fire incident that occurred in February 2022; (iii) $9.3 million related to the Puna power plant due to its higher generation in 2024; and (iv) $3.6 million related to the North Valley power plant which started commercial operations in April 2023. This increase was partially offset by lower revenues of $3.2 million in the Dixie Valley power plant due to unscheduled maintenance, as well as additional decreases in lower amounts at a number of other power plants.
Current report — wording carried from elsewhere
Cost of revenues attributable to our Energy Storage segment for the six months ended June 30, 2024 was $15.9 million compared to $11.0 million for the six months ended June 30, 2023. This increase is related to the corresponding increase in Energy Storage revenues as described above.
Current report — wording carried from elsewhere
Write-off of Unsuccessful Exploration Activities
Current report — wording carried from elsewhere
Interest expense, net for the six months ended June 30, 2024 was $64.7 million, compared to $48.0 million for the six months ended June 30, 2023. This increase of $16.7 million is primarily due to loan agreements entered into during, or subsequent to, the first six months of 2023 such as: (i) the Mizrahi 2023 Loan entered into in November 2023; (ii) the Hapoalim 2023 Loan entered into in February 2023; (iii) the short-term commercial paper entered into in October 2023; (iv) the Hapoalim 2024 Loan entered into in January 2024; (v) the HSBC Bank 2024 Loan entered into in January 2024; (vi) the Mammoth Senior Secured Notes entered into in March 2024; (vii) the DEG 4 Loan entered into in April 2024; and (viii) the Discount 2024 Loan entered into in May 2024. This increase was partially offset by lower interest expenses on other long-term loans as a result of regular principal payments.
Current report — wording carried from elsewhere
Derivatives and Foreign Currency Transaction Gains (Losses)
Current report — wording carried from elsewhere
Derivatives and foreign currency transaction losses for the six months ended June 30, 2024 were $1.9 million, compared to $3.2 million for the six months ended June 30, 2023. Derivatives and foreign currency transaction gains (losses) primarily includes losses from foreign currency forward contracts which were not accounted for as hedge transactions, and the impact of changes in the foreign currency exchange rate related to foreign locations where the Company operates in, against the U.S. Dollar.
Current report — wording carried from elsewhere
Income Attributable to Sale of Tax Benefits
Current report — wording carried from elsewhere
Income attributable to the sale of tax benefits for the six months ended June 30, 2024 was $33.3 million, compared to $27.5 million for the six months ended June 30, 2023. This income primarily represents the value of PTCs and taxable income or loss generated by certain of our power plants allocated to investors under tax equity transactions. The increase in income attributable to the sale of tax benefits of $5.7 million is primarily related to the North Valley tax equity transaction entered into in October 2023, and to income related to the expected sale of transferable production tax credits under the new IRA regulations of $8.0 million in the six months ended June 30, 2024, compared to $4.5 million in the six months ended June 30, 2023. This increase was partially offset by lower generation of PTC's by other tax equity structures.
Current report — wording carried from elsewhere
Other Non-Operating Income (Expense), Net
Current report — wording carried from elsewhere
Equity in Earnings (losses) of Investees, Net
Current report — wording carried from elsewhere
Net Income Attributable to the Company’s Stockholders
Current report — wording carried from elsewhere
Company may experience further delays in collection. The Company believes it will be able to collect all past due amounts from ENEE.
Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
ITEM 2.** MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Previous report — wording carried elsewhere
For the Three Months Ended March 31, 2024
Previous report — wording carried elsewhere
Net income for the three months ended March 31, 2024 was $40.4 million compared to $33.5 million for the three months ended March 31, 2023.