Ormat (ORA) 8-K Results of Operations and Financial Condition

Exhibit 99.1

PRESS RELEASE

For Immediate Release

Ormat Technologies Contact:
Dita Bronicki
CEO
775-356-9029
dbronicki@ormat.com Investor Relations Contact:
Todd Fromer/Rob Fink
KCSA Strategic Communications
212-896-1215(Todd)//212-896-1206 (Rob)
tfromer@kcsa.com / rfink@kcsa.com

ORMAT TECHNOLOGIES REPORTS SECOND QUARTER 2011 RESULTS
Q2 net income of $8.2 million with increased total revenues of $104.6 million
Product backlog reached $225 million

(RENO, Nev.) August 3, 2011— Ormat Technologies, Inc. (NYSE: ORA) today announced financial results for the second quarter of 2011.

Quarterly highlights:

• 18 percent increase in electricity revenues;

• 11 percent increase in electricity generation; and

• the largest product order which led to a record high backlog.

Commenting on the results, Dita Bronicki, Chief Executive Officer of Ormat, stated, “The second quarter was highlighted by strength in electricity operations. The good performance of most of our plants translated into growth in generation and in revenues from electricity, which increased to $81.2 million.

“We successfully secured new contracts for the supply of geothermal power plants and other power generating units. During the quarter we received a supply and engineering, procurement and construction (EPC) contract from New Zealand, which has a collective value of approximately $130 million. This represents the largest product order in our company’s 46-year history, and, as a result, the product backlog increased to approximately $225 million.

“During the quarter, we also have made additional progress toward diversifying our future development portfolio by entering into a build, operate and transfer (BOT) agreement with Tikitere Geothermal Power Limited (TGL) to explore, develop, supply, construct, own and operate a 45 MW geothermal power plant in New Zealand.”

Financial Summary

Second Quarter Results

For the three months ended June 30, 2011, total revenues were $104.6 million, compared to $96.3 million in the second quarter of 2010. Electricity revenues increased by 18.0 percent to $81.2 million, up from $68.8 million in the second quarter of 2010. Electricity revenues in the quarter include $4.8 million relating to our North Brawley power plant with corresponding cost of revenues of $10.4 million. Total generation increased by 11.2 percent and the average revenue rate of electricity operations was $83 per MWh, up from $78 per MWh in the second quarter of 2010. Product revenues for the three months ended June 30, 2011 were $23.4 million, compared to $27.5 million in

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the same period in 2010. Product revenues in the quarter include $7.9 million relating to an experimental REG plant in an LNG terminal in Spain.

For the quarter, the company reported net income of $8.2 million, or $0.18 per share (basic and diluted), compared to a net loss of $1.5 million, or $0.03 per share (basic and diluted) for the same period a year ago. The increase is principally attributable to the increase in the gross margins of both our electricity and product revenues.

Adjusted EBITDA for the second quarter of 2011 was $47.7 million, compared to $24.0 million in the same quarter last year. Adjusted EBITDA includes consolidated EBITDA and the company’s share in the interest, taxes, depreciation and amortization related to its unconsolidated 50 percent interest in the Mammoth complex in California in the three months ended June 30, 2010. The reconciliation of GAAP net cash provided by operating activities to Adjusted EBITDA as well as additional cash flow information is set forth below.

As of June 30, 2011, cash, cash equivalents and marketable securities were $67.4 million. In addition, as of June 30, 2011, the company had available committed lines of credit with commercial banks aggregating $407.5 million, of which $196.0 million is unused.

On August 3, 2011, Ormat’s Board of Directors approved the payment of a quarterly dividend of $0.04 per share pursuant to the company’s dividend policy, which targets an annual payout ratio of at least 20 percent of the company’s net income. The dividend will be paid on August 25, 2011 to shareholders of record as of the close of business on August 16, 2011. The company expects to pay a dividend of $0.04 per share in the next quarter.

Commenting on the outlook for 2011, Bronicki said, “We continue to expect 2011 electricity revenues to total $315 to $325 million. We are maintaining our product revenues guidance to be $90 to $100 million.”

Six-Month Results

For the six months ended June 30, 2011, total revenues were $202.4 million, an increase of 13.1 percent from $178.9 million in the same period last year. Net loss for the period was $0.7 million, or $0.02 per share (basic and diluted), compared to net income of $0.3 million, or $0.01 per share (basic and diluted), in the same period in 2010.

Electricity revenues for the six months ended June 30, 2011 were $159.5 million, compared to $134.9 million in the same period a year ago, an increase of 18.2 percent. Product revenues for the first six months of 2011 were $43.0 million, compared to $44.0 million in the same period in 2010, a decrease of 2.3 percent.

Adjusted EBITDA for the six months ended June 30, 2011 was $74.8 million, compared to $56.1 million for the same period a year ago. Adjusted EBITDA includes consolidated EBITDA and the company’s share in the interest, taxes, depreciation and amortization related to its unconsolidated 50 percent interest in the Mammoth complex in California for the six months ended June 30, 2010. The reconciliation of GAAP net cash provided by operating activities to Adjusted EBITDA, as well as additional cash flow information is set forth below.

Conference Call Details

Ormat will host a conference call to discuss its financial results and other matters discussed in this press release at 10 a.m. EDT on Thursday, August 4, 2011. The call will be available as a live, listen-only webcast at www.ormat.com. During the webcast, management will refer to slides that will be posted on the web site. The slides and accompanying webcast can be accessed through the IR events & Presentations in the Investor Relations section of Ormat’s website.

The webcast replay will be available approximately two hours after the conclusion of the live call. A telephonic replay will be available from 1 p.m. EDT on August 4, 2011 through 11:59 p.m. EDT on August 11, 2011 by calling: (855) 859-2056 (U.S. and Canada) or (404) 537-3406 (International) and entering the reply code: 83311580.

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About Ormat Technologies

Ormat Technologies, Inc. is the only vertically integrated company primarily engaged in the geothermal and recovered energy power business. The company designs, develops, owns and operates geothermal and recovered energy-based power plants around the world. Additionally, the ccompany designs, manufactures and sells geothermal and recovered energy power units and other power-generating equipment, and provides related services. The company has more than four decades of experience in the development of environmentally sound power, primarily in geothermal and recovered-energy generation. Ormat products and systems are covered by 80 U.S. patents. Ormat has engineered and built power plants, that it currently owns or has supplied to utilities and developers worldwide, totaling approximately 1370 MW of gross capacity. Ormat’s current generating portfolio includes the following geothermal and recovered energy-based power plants: in the United States — Brady, Brawley, Heber, Jersey Valley, Mammoth, Ormesa, Puna, Steamboat, OREG 1, OREG 2, OREG 3 and OREG 4; in Guatemala — Zunil and Amatitlan; in Kenya — Olkaria III; and, in Nicaragua — Momotombo.

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. 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. Actual future results may differ materially from those projected as a result of certain risks and uncertainties. For a discussion of such risks and uncertainties, see “Risk Factors” as described in Ormat Technologies, Inc.’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 28, 2011.

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

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Ormat Technologies, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
For the Three and Six-Month Periods Ended June 30, 2011 and 2010
(Unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
	2011			2010			2011			2010
	(In thousands, except per						(In thousands, except per
	share data)						share data)
Revenues:
Electricity	$	81,190		$	68,807		$	159,458		$	134,912
Product		23,424			27,459			42,976			44,008
Total revenues		104,614			96,266			202,434			178,920
Cost of revenues:
Electricity		62,212			63,498			128,149			118,021
Product		9,249			14,115			26,139			26,552
Total cost of revenues		71,461			77,613			154,288			144,573
Gross margin		33,153			18,653			48,146			34,347
Operating expenses:
Research and development expenses		2,575			3,614			4,782			6,881
Selling and marketing expenses		3,725			2,686			6,385			5,888
General and administrative expenses		7,479			6,996			14,486			14,016
Write-off of unsuccessful exploration activities		—			3,050			—			3,050
Operating income		19,374			2,307			22,493			4,512
Other income (expense):
Interest income		716			95			851			292
Interest expense, net		(17,442	)		(9,426	)		(30,522	)		(19,140	)
Foreign currency translation and transaction gains (losses)		596			(1,033	)		1,113			(599	)
Income attributable to sale of tax benefits		3,141			2,070			5,280			4,209
Other non-operating income (expense), net		915			79			118			(280	)
Income (loss) from continuing operations, before income taxes and equity in income (losses) of investees		7,300			(5,908	)		(667	)		(11,006	)
Income tax benefit		1,007			3,365			421			5,922
Equity in income (losses) of investees, net		(69	)		479			(481	)		1,025
Income (loss) from continuing operations		8,238			(2,064	)		(727	)		(4,059	)
Discontinued operations:
Income from discontinued operations, net of related tax		—			—			—			14
Gain on sale of a subsidiary in New Zealand, net of related tax		—			570			—			4,336
Net income (loss)		8,238			(1,494	)		(727	)		291
Net loss (income) attributable to noncontrolling interest		(105	)		57			(115	)		110
Net income (loss) attributable to the Company’s stockholders	$	8,133		$	(1,437	)	$	(842	)	$	401
Weighted average number of shares used in computation of earnings (loss) per share attributable to the Company’s stockholders:
Basic		45,431			45,431			45,431			45,431
Diluted		45,443			45,431			45,431			45,431

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Ormat Technologies, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
As of June 30, 2011 and December 31, 2010
(Unaudited)

	June 30,		December 31,
	2011		2010
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	44,338	$	82,815
Marketable securities		23,097		—
Restricted cash, cash equivalents and marketable securities		28,713		23,309
Receivables:
Trade		72,185		54,495
Related entity		355		303
Other		7,795		8,173
Due from Parent		122		272
Inventories		14,408		12,538
Costs and estimated earnings in excess of billings on uncompleted contracts		570		6,146
Deferred income taxes		1,361		1,674
Prepaid expenses and other		22,481		14,929
Total current assets		215,425		204,654
Long-term marketable securities		—		1,287
Restricted cash, cash equivalents and marketable securities		—		1,740
Unconsolidated investments		4,068		4,244
Deposits and other		22,989		21,353
Deferred income taxes		17,087		17,087
Deferred charges		37,059		37,571
Property, plant and equipment, net		1,417,931		1,425,467
Construction-in-process		337,969		270,634
Deferred financing and lease costs, net		19,609		19,017
Intangible assets, net		38,676		40,274
Total assets	$	2,110,813	$	2,043,328
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable and accrued expenses	$	76,607	$	85,549
Billings in excess of costs and estimated earnings on uncompleted contracts		18,818		3,153
Current portion of long-term debt:
Limited and non-recourse		14,304		15,020
Full recourse		14,775		13,010
Senior secured notes (non-recourse)		20,622		20,990
Total current liabilities		145,126		137,722
Long-term debt, net of current portion:
Limited and non-recourse		107,390		114,132
Full recourse:
Senior unsecured bonds		250,189		142,003
Other		75,920		84,166
Revolving credit lines with banks		151,461		189,466
Senior secured notes (non-recourse)		203,382		210,882
Liability associated with sale of tax benefits		78,519		66,587
Deferred lease income		70,010		71,264
Deferred income taxes		28,997		30,878
Liability for unrecognized tax benefits		4,380		5,431
Liabilities for severance pay		22,565		20,706
Asset retirement obligation		20,684		19,903
Other long-term liabilities		4,473		4,961
Total liabilities		1,163,096		1,098,101
Equity:
The Company’s stockholders’ equity:
Common Sstock		46		46
Additional paid-in capital		722,522		716,731
Retained earnings		216,362		221,311
Accumulated other comprehensive income		729		1,044
		939,659		939,132
Noncontrolling interest		8,058		6,095
Total equity		947,717		945,227
Total liabilities and equity	$	2,110,813	$	2,043,328

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Ormat Technologies, Inc. and Subsidiaries
Reconciliation of EBITDA and Adjusted EBITDA and Additional Cash Flows Information
For the Three and Six-Month Periods Ended June 30, 2011 and 2010
(Unaudited)

We calculate EBITDA as net income before interest, taxes, depreciation and amortization. We calculate adjusted EBITDA to include depreciation and amortization, interest and taxes attributable to our equity investments in the Mammoth complex. EBITDA and adjusted EBITDA are not measurements of financial performance or liquidity under accounting principles generally accepted in the United States of America 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 accounting principles generally accepted in the United States of America. EBITDA and adjusted EBITDA are presented because we believe they are frequently used by securities analysts, investors and other interested parties in the evaluation of a Company’s ability to service and/or incur debt. However, other companies in our industry may calculate EBITDA and adjusted EBITDA differently than we do. The following table reconciles net cash provided by operating activities to EBITDA and adjusted EBITDA, for the three and six- month periods ended June 30, 2011 and 2010:

	Three Months Ended June 30,						Six Months Ended June 30,
	2011			2010			2011			2010
	(in thousands)						(in thousands)
Net cash provided by operating activities	$	26,440		$	10,694		$	39,506		$	58,934
Adjusted for:
Interest expense, net (excluding amortization of deferred financing costs)		16,528			8,754			28,824			17,775
Interest income		(716	)		(95	)		(851	)		(292	)
Income tax benefit		(1,007	)		(3,935	)		(421	)		(3,916	)
Adjustments to reconcile net income to net cash provided by operating activities (excluding depreciation and amortization)		6,433			7,692			7,772			(18,314	)
EBITDA		47,678			23,110			74,830			54,187
Interest, taxes, depreciation and amortization attributable to the Company’s equity interest in Mammoth-Pacific L.P.		—			939			—			1,912
Adjusted EBITDA	$	47,678		$	24,049		$	74,830		$	56,099
Net cash used in investing activities	$	(27,817	)	$	(44,033	)	$	(135,741	)	$	(109,014	)
Net cash provided by financing activities	$	5,040		$	44,423		$	57,758		$	57,968
Depreciation and amortization	$	24,635		$	19,880		$	48,005		$	40,329

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