Ormat (ORA) 23 May 232023 Q1 Earnings call transcript

Good morning and welcome to the Ormat Technologies’ First Quarter 2023 Earnings Conference Call. All participants will be in a listen-only mode. After today’s presentation there will be an opportunity to ask questions. [Operator Instructions] Please note that this event is being recorded.

I’d now like to turn the conference over to Alec Steinberg with Alpha IR. ahead. go Please

operator. Thank you,

call Assi today Vice Chief the and Doron of are Chief Financial Officer; Reporting. Planning Ginzburg, ESG Lavi, Relations Executive Officer; Investor Hosting and Blachar, and President Smadar

to like contain Reform in plans, and the as may relating projections would we future statements forward-looking of beginning, remind information XXXX. that this forward-looking estimates, provided expectations, current Litigation defined events Private Act that These to results about Securities call during forecasts forward-looking, Before objectives projected are are may Company’s expectations Actual statements for current risks and generally the from as relate results operations and based certain of estimates and future to those future result materially differ and or uncertainties. management’s a on projections, future trends.

and and quarterly with on are discussion see Ormat the such please SEC. in described that a Risk reports XX-K annual as of report Form filed Technologies’ risks uncertainties, Form XX-Q on Factors For

financial as the on website. calculated the the financial slides these measures accordance GAAP. as In last in as the with and not addition, GAAP press information call, for not Reconciliations well GAAP, the management’s comparable adjusted in is measures during present in posted reasons are they with isolation from issued Because Company was accordance should night considered in in be statements prepared presenting measures the directly release the forth EBITDA. such such to most set non-GAAP that will

tab. ormat.com, accompanying presentation remind on call that’s accessed Before under that I may turn the presentation at Investor on management, the link Company’s like over call this the website Relations found the everyone would to a slide I to be

Doron call the now turn the Blachar. is yours. I like With all all over said, would Doron, that call to to

Thank you, everyone. us morning, good you today. Thank Alec, joining for and

a supported report the year to to sector. by strong EBITDA year-over-year our mainly impressive growth net and income start adjusted pleased electricity with We’re

our of respectively. as We this initiatives net performance income as and shareholder attribute operational significant to by that regulatory and tax and success us income Our tailwind impacted strategic XX.X% well value. allowed was Act. saw And XX.X% our operating adjusted Reduction EBITDA as positively our growth XX.X%, year, to improvement maximize income increased Inflation the last from the

Our the lead strong of revenue to expect the in to the accelerate strategy. in revenue throughout our the the Electricity first the to was step-down segment that the timing In year. the continued in of made demonstrated with portfolio Product we performance year recognizing we way due quarter ongoing to segment, remaining which benefit largely last our expansion year, compared

Our storage and segment’s result which facility. the quarterly performance our PJM reduction rates, CAISO in was negatively overall in impacted by impacted an energy

As of quarter, of facilities two we capacity we of two we enter megawatt, energy XX are second and additional operation construction facilities, total and storage near new completed completion megawatt a with XX the started hour.

line. We We to XXXX. momentum expect we to for impact the our year guidance the saw track remain full for will projects, IRA which our tax in additional in energy storage the bottom and geothermal with for expect we of available capacity credits continue rest benefits providing expansion overall XXXX QX positively goals positive on XXXX with the

expect we for confident continued and in in look energy our renewable from are segments. future, to we the three we it As the demand benefit all to

plans, I call financial Assi results. over provide will I to the turn our the review to updates operations further before Now, on future and

Assi?

Thank you, Doron.

financial of X. my Let highlights me start review on slide our

by year-over-year, Total our mostly segment. the up million, growth driven roughly for X% first $XXX.X quarter revenue in Electricity was

quarter. $X.XX up was the in margin The was per company quarter margin attributed or XXXX increase million added XX.X% of the in share XXXX period diluted of income favorably $XX in in facilities. to million This from gross the in benefit half net profit to stakeholders total $XX.X gross First segment result year. the in both, resulted XX.X% the new driven the per in second income in results the XXXX. XX.X%, the compares of of last was $XX.X the a operating new quarter Electricity and or contribution gross a million. geothermal of and mainly first our This capacity income, Net of diluted of share $X.XX by to same strong increase IRA the storage

quarter, the a $XXX.X by year. PTC result in driven Adjusted first XX.X% impact last the further operating in EBITDA income assets compared increase the new supported $XXX.X of as was the of largely quarter quarter. by added, first in increased million the generated The XX.X% the increase million in of

Breaking the lower to of Tungsten, and facility, $XXX.X the as partially by the level. driven in million. well X increased expansion contribution Electricity Heber segment solar from efforts revenues XXXX, energy CDX, Puna. successful at X.X% were mainly down from rates was These increase Ormat’s as from segment revenue drivers offset in of This portfolio to repowering by revenue growth complex. Heber the

of year-over-year represented Product due revenue segment, was the the million decline to XX.X% by In in mainly revenue to timing the the the period. compared consolidated X.X% revenue total first $XX recognition prior of decreased and to quarter. The

$XX during segment approximately we full amount confidence year. our total three at And first represent However, of last XX% year compared same up reiterate to quarter which the able contracts guidance, were million. time to sign the to our we growth revenue in new a

United $X.X of decrease in the were This revenues first in $X.X East of PJM by to at States, in lower quarter compared our facilities. segment the million XXXX. million, resulting rates driven in primarily reduction energy rates was Coast Storage the Energy the

XX.X% the insurance the for was related margin million proceeds second year gross Electricity and slide in the year. The last to versus higher $X.X capacity the The segment Puna margin quarter XX.X%, plant. gross last -- by was to to added compared expansion attributed Moving X. to new

strength same contract signed year In ago remaining period. drive of the the for X.X% the of to margin which the year. XXXX was the and we Product margin, new the segment, late segment will far, compared the was Despite our quarter, segment gross XXXX margin in for so flat believe that higher in flat

Storage segment Energy XX.X% year. compared to margin in gross last negative margin the a of The a first gross quarter reported

improvement, we assets portfolio well start operate grow margin new the as expect segment We as and to significantly. the

generated reported segment Ormat in Company. EBITDA of XX% adjusted $X.X and representing total the are Electricity total And consolidated for of Product The EBITDA EBITDA EBITDA of X.X% The Energy X.X%. the EBITDA Reconciliation adjusted adjusted slides. the segment in million, of generated segment appendix Storage provided quarter. first the adjusted

Looking at X. slide

cash restricted XXXX as $XXX Cash XXXX billion. as as debt XX, XX, approximately and cash $X.X March XX, approximately equivalents compared of to December of March and was $XXX Our net million was of equivalents, cash and XXXX. million

Ormat’s of generating months, We three service that The liquidity maintain. the use this slide the cash the has offering, our breaks note from by use we return our capital and in operation, been business, profile ability cash in and reinvest of strong of fallen dividend. shareholders to cash down form to debt for cash illustrating our equity

stands will presented remain capital Our financing of to environment. as is at XX rising Ormat $X.X debt which total fund billion, of as fixed debt the think cost, we Company we appendix. our in believe continue deferred in XX, of the cost interest payment target, debt March the net to The X.XX%. We competitively all schedule help average nature, it XXXX its slide approximately and on was of growth multiyear to rate nearly in deploy prepare global important positioning note liabilities is our of rate

will the CapEx expect to new of develop needed with we support of us U.S. enable reduce our future to XX% finance we significantly geothermal to PTC energy. expect under the storage the which and to XX% addition, ITC and In funds IRA,

in nearly to we advance quarter our Moving growths. of million to the slide CapEx $XXX In X. first XXXX, invested

and We of have cash credit. available $X.X billion of lines

in of additional future total quarters Our in as the to sourcing, access we capital the liquidity slide capital rates with includes of expenditure Overall, our position million appendix. at $XXX for attractive have to initiatives. last XX excellent strong XXXX in growth support expected terms capital and capital of detailed three

quarterly shares May authorized XXXX, on Directors per of holders the common payment X, of and on approved a June of all XXXX, On of XX, to our of May payable issued Company’s $X.XX XXXX. Board X, outstanding and stock dividend declared, share

Company the in quarterly each pay the of dividends per two to share next $X.XX addition, quarters. of expects In

Doron financial concludes my like discuss overview. some to That Doron? our developments. I to of would recent over the turn now call to

Assi. you, Thank

availability X natural portfolio. repower solar facilities Turning partially XX and operating Wister to from the Heber constrained our new slide for pipeline. of to Solar. at at generation a by Electricity Generation was addition growth the our with positively by that by gas Tungsten, This mainly CDX, offset lower old supported the the are including facilities be heat segment look continues

power new to Brady the first quarter, the segment of X.XX to completion plant gigawatts. and megawatts addition, of the total the our the power added the reached Valley Electricity adjacent from facility to of In end electricity and portfolio we plant XX North geothermal solar

our Moving megawatts the to XX generating slide quarter XX XX range has achieved fourth recently the of which is plant improvement a power significant geothermal of megawatts, capacity Puna a approximately to XX, from XXXX. in

last our healthy, While were electricity lower than for they year. generation prices remain

efforts HELCO Hawaii product to made agreed plant to the increase we Olkaria favorable are Kenya, have power more complex the PUC. we are approval regard we of from new Ormat with in In for PPA to our the on that expansion, awaiting terms and ongoing progress As capacity. our the in

the have XXXX. We in XXX fourth XXX megawatts, from quarter the approximately of of capacity raised up megawatts

is to new and line complex of bring the its The With X profitability. end Heber is to total respect new expected X, Heber to the the and expect to together with completion megawatts efficiency by be XX capacity second and power the on repowering of quarter. improve the the facilities nearing plant

first an at We XX $XXX $XX million contracts which million. backlog stands able Turning to totaling slide during sign for quarter. to on the were update approximately our

will new recently, addition, Turkey, a we increase development. for approved was demand structure new which in anticipate In favorable tariff

segment slide was and to Storage CAISO. the at affected Moving PJM Energy by low XX, rate

at segment However, a that in year. will the projects for megawatt, the mode, we’ve capacity of these starting anticipate help of XX the We of megawatt hour. quarter combined two XX segment’s completion this revenue operating add end new of nearing two increase the made progress the which by to facilities, will

an XX for strong of expect tailwind slide overview the initiatives. from regulatory we to Moving

recently was that side, $XXX for Turkish hour. incentives sales that will new with introduced tariff believe opportunity. of megawatt as mentioned us overall reopen for in the On the the this international tariff secure will additional market a We local per manufacturing, includes development Turkey earlier, approximately I new

this the In sold our quarter. the under already benefit CDX geothermal the the million results. saw Reduction Act and increased transaction Heber this Transferable and tax to on new PTC of U.S., PTC EBITDA our X positive related quarter Solar we Inflation by Wister adjusted $X.X equity

transferable the we related new addition, storage impact projects. tax increased net through and more year the expense reduced add our energy This In our increase thus continue ITC income. and to positive facilities as will will

expect for PTC the particularly the us approximately growing to in source total related XXXX. ITC we to capital to and geothermal our significantly needs benefits cash $XXX our of reduce portfolio. We million benefit cash enable look leading continue will This year, as of

Moving and XX. to slide XX

plans Electricity Our minor segments some despite for and both delays. track, growth Storage remained on firmly

of As XXXX. the of XXXX, to we achieved XXX and the to plants, This compared an target gigawatts through storage represents year-end megawatts our XXX of ahead solar XXX growth geothermal added approximately energy and at of of XXX% be XXX power megawatts the capacity. impressive to X.XX midpoint capacity will energy addition look to

underway. display be Dixie on line and plant Slides XX XX power projects XXXX. Heber are Steamboat geothermal and during of Solar currently hybrid The and the geothermal expected solar PV X Valley the quarter to second and

XX, highlight growth slide and to the segment. our Energy the which layer Moving plan, XX of Storage third

of and commenced are mentioned Andover. operation and presented we Bowling and Howell slide As we completion XX Green as Upton the on of and earlier, I nearing

addition, second are two assets be have in XXXX. we to half In the of planned that online

U.S. X pipeline and of storage in robust a pipeline, we and California in capacity than more of our Our gigawatts energy Texas. mainly pipeline is have developed

months year-over-year guide. our XXXX In meaningful net growth slide delivered of turn first income. discussion adjusted EBITDA has and across three operating XX to the income, four our XXXX Please revenues, Ormat of

which at million year-over-year. expect We between XX% million to and and represent XX% million, electricity, to revenues increase year $XXX to interest are between a X% midpoint. a be expected $XXX $XXX full range the $XXX million Within revenues will

million, XX%. between which approximately is throughout range. expect is revenue is be $XXX year-over-year. significant $XXX products for and also to Storage an for from and $XX between XXXX to come to the which improvement $XXX million million We year, million million, is $XX XXXX guidance revenue also a expected Adjusted $XXX million the EBITDA increase double-digit

our social call, close continued and before to ESG commitment On initiatives. environmental, highlight slide governance I to I want XX, the

part a XXXX end sustainability working our of we’re performance which the As August, and comprehensive report publish of to of our overview and by target. commitment, this ESG finalize initiatives, would provide

our Further will ESG we have supporting within established week. Directors global be our Board initiatives, first week committee of our new and ESG next ESG a

pleased global we I with will end demand solid positioned slide our our on remains delay, another XX. to Despite to growth. prepared solutions. quarter are significant renewable energy on capitalize In remarks for some we’re summary, track and on the strong well report growth plan short-term

environment also the our we and growth communities always, profitable dedicated remain on operate. to the a shareholders, while for we As impact delivering where sustainable, making positive

prepared concludes This our remarks.

Operator? call the for Now, I to open would questions. like

Kaye with Thank The Noah first Oppenheimer. you. [Operator from is question Instructions]

start repowering. that on can with X Congratulations done timely. Heber getting we Maybe the

year I to the been do able went and has out. impressive through now, at where the able the fire done from to complex. repowering? you’ve What think to we and be if that look back you impact that played process what ago Maybe actually at looked talk how with are a affect you’ve

or plant a Ormat And of during I equipment, operate equipment. power day Heber should basically the end the to steam really the used any the to XX% XX-megawatt year, X quarter. was be and it QX was to of COD, XX% before X December. in was be last the Toshiba expected have QX, power of already reminder equipment plant started and X as So, now is throughout Heber Heber Mitsubishi

steam the all were year, reinstall fire, last the obsolete. during the equipment During were to able the all And basically we units. of

use old operate. to Ormat even used going that to the not unit We’re

it brand plant. cost And to is an close X capacity be than X Heber and Heber happen steam will then much better better the the profitability, And further much mega. the expect operate plant operate the in of XX we surrounding a new the a to facilities and of Heber to between cost also because older new

helpful. Very

to should think across would potential would can today? ITC quantification a know can whether it portfolio. But helpful. Perhaps into factor of broader you into repowering the that you you comment I PTC up perhaps opportunity about opens opportunities come benefits I that be Any -- decision. I repowering say. don’t the that question see ITC,

project in was you Mammoth We’ve said, So, as repowered. facility Ormesa sites. our the facility Heber other and GX and similar done in the a in

our we So, project, currently big facilities. any don’t repowering have like a Heber in

in one, We and have like Guatemala. smaller you Dixie that Valley see

So, big of megawatts XX we have in taking Beowawe middle for megawatts And it repower basically comes over another do that old actually is it will is project. today. X, have that and line that facility project we’re we the that’s generate call -- doing XX on next an year. smaller the when a doing repower

that the one, maybe nice And PPA the last hear on forward. to restarting, just move Puna,

for that Can you the Talk the to from for favorable favorable is about to for more way the this know just a us is more there Company. favorable? for sort it what desire more away was linkage fuel get it’s fossil I prices. mentioned in why You Company? PUC, of dimension

new we’ve lot Since are is of another that going efforts None that within new to embedded big invested have resume -- replace seen drilling you’ve Puna of line. basically into and Puna. and time, facility PPA. will come entire you’re the over costs the us following obviously once Actually, will quite updated the on the into a that these we’re PPA, facility basically repower we

filed and hope in XX into facility. we forward middle we megawatt is QX PPA to cost takes it us And we’ll finished it had find higher and account PUC. drill the get -- approval QX the the we the PUC resources from because to get order for And they -- that with support we can and Hawaii the project. with that better the of So, it we’ll move in

MKM. from is question next ROTH The Clare with Justin

already First beyond development the presentation. in the details might to additional identified growing have you under talk be if ready your about could the capacity off you visibility to point here, pipeline? just share that into you you projects additional wanted that have When projects just will geothermal the have I’m beyond? likely beyond you wondering time, have in in projects potentially are identified, that in be on they projects developing this are to the And XXXX, you at CODs XXXX sometime or see or

you, Thank Justin.

holes holes, that the of We in we we have have drill them program; is year we the But of everything three with horizon. approximately traditional core are core core XX drill will next location before we prospects will be will successful in started XX-K, drill -- most the core we that seven that will And sites two level development their hole the core have. listed location plan in come U.S. in side in ‘XX, U.S., plan for wanted and timeframe Nevada the This this a ‘XX to where California. in hole That’s We hole. start to real they our in globally, Nevada. now assuming

locations. competing we’re drilling -- was tender state owned just government and to Indonesian two utility, Indonesia, Indonesia, and negotiation the in We are with In the issued responded a of by takes location various that of and in new site. bit the we’re have process Chevron that we as we the a stages the Pertamina longer. And additional part exploration. on In utility

what in maybe that we’re round So but today there’s later, development presentation. a next of potentials the many we listed beyond our it’s working little for definitely have

maybe the just project in PPA comment you’re also markets. just other more was favorable. seeing for us But sounds on you what terms the the PPA for trend in what like Puna was can you the U.S., seeing maybe signed could It assets, I if of then, broadly. in then on wondering but you’re And geothermal update pricing in

your see actually question, of XXXX the end been and for the asked We I continuous beginning -- the -- can to signing CPAs you we tell to a PPA, demand different the on been maybe by so project. follow-up have utilities XXXX. geothermal and a on previous a already of

So we high, not the demand and number prices And are see up. go when of is very quite a lot demand. of projects high

$XXX on So, the between in set Indonesia per increased set has the see has a site. megawatt, pricing that to to depends -- we operating tariff ranges the presidential of other we’re $XXX, locations U.S. continue the location $XX

are pricing. these also PPA So, good

me. to logistics? bit for Product was profile. declined the to product supply just I issue Revenues then you on declined one for you be the chain any do timing And or deliveries, segment. more the if Shifting or And the share that segment. also wondering revenues just then, margin maybe in happened Was this a quarter-over-quarter. in why see could

that where through margins in QX QX, segments the in margins through rest indicated year we are expected the wondering here. see could QX segment I or the You Product here. that increase year to was of the gross for moving

So, between projects decided the Ormat why we reason the building year the able was were as revenue on full And guarantee, working brief for remarks, mentioned way the work basically the high work, have we the as we be internal revenue to we this our of to -- behind almost quarter almost expect revenue the to in end sufficient is just third-party. we to and for for allocate backlog year. a were

are was that that lower the the that on between XX% of annual in with I combination and of an ones from margins think XX% gross XXXX. that of These on should are be tracking to we some margin, early that to signed the margin. respect have With the the have of environment are coming in based types margins XXXX Ormat contracts somewhere base margin should that this higher

the of between So, when and our we to fixed higher towards some somewhere you end year. maybe come costs, should of combine on between end margin the XX% also them XX% the

from Bank Dumoulin-Smith [Operator question is America. next Instructions] The of with Julien

of you few I a even talk first California how to capacity contractor just some and California and conceivably I year-over-year meaningfully prices years, as are the that next amounts much fixate about California on a and way. the that, months might impact Obviously, see IRRs higher might development in you as get change from will? Look, a foremost. know robust well operate last wanted given to opportunity exposure obviously in more principally sense step-up the first, I in up as and your the wanted does to to but big portfolio, as that how are here there, secondly, actually capacity you IRA, focus between, very that modest if few just the

very in California you. renewable. go Julien, from the demand Nevada, coming basic strong say, to that Hey, in is see but we We as requirement is also the see strongly a thank very you demand to

locations couple been have in we In with of preparation and we’re that for the at targeting exploration Today see than our five as in two the the to we the ago you mentioned. years we see benefits CPUC, seven of in drilling As that this drilling growth get up IRA doubled and past, go to started higher locations the to more the parallel pricing a locations. we’ve the maximum. PPA efforts. resolution We three to in

PTC getting by in will to the the start the regardless, end geothermal of we working operating are the But year. context according we requirements of We’re And to hope and up they of IRS a be until the extended. ‘XX. is end construction, the

extended So four if geothermal. be enjoy most following in coming will will projects of line for years they on even not PTCs, the our IRA, the

our And this already be lot part planning we’ve projects I successful be the wave of be exploration as -- drilled U.S., will base three going year. phase. we the So, this if said the locations of to build will growth that in four put holes, forward. mainly new a another and before, into drilling in exploration are of the for resource efforts for beginning in of in next Nevada year, the next will And a

the recognized the forecast ITCs you Key elaborate is can briefly, PTCs around question through period. if you and if mind. And don’t

million know that what here. through flow the are of Just I few does years? current to little bit. I per these can think things year? some in XXX next give visibility. to over you does amount you try the around How a moving If had year that sense guys

Julien, for this the question. you Thank is Assi.

of year, of is of So This the that ITC storage bringing amount assets. million outcome an line, $XX the and ITC the amount we first, to the expect around assets benefits. of COD the timing we’re million the on CapEx $XX of of somewhere

which All quarter. companies, and the to rate of should the to income tax similar flow reduce for the in tax reduction this what we saw

only When the around we million, look of have next is we will this XX analysis, under ITC, million Bottleneck course XX on to which cost give to year, which the of us Bottleneck million larger large means year, next one, entitled $XXX scenario, and looks two XX% preliminary projects, like It be Bottleneck, compared that $XXX us million. this XX should year million. based to

expect on have addition see year around So Montague, get list, we Bottleneck, $X you also of year. benefit also next in more ITC. we ITC double this Because can will to as than to the which be million

on net $XX year, big should roughly And while will be see of around So, transaction, this income we next tax next equal as ITC $XX we year, we proceed. look see -- proceeds. ITC Valley. of $XX as we around do every what add be year, it million to saw we won’t somewhere it million, and North million a boost equity we at When

PTC year, $XX ITC expect around proceeds. the million two next of between So we and

it’s year will generate from the impact solar PTCs P&L cash The much $XX be some impact probably to will lower, some addition the that be but XXXX of will to will In projects, higher. during higher. in much impact the going other P&L be be around But the million. so,

net very expect good income So, exchange. we a

And time, you just flow delayed right? period the right? instantaneously, that’s because confirm you that over with quoted P&L? we’re some pretty numbers, much flowing to you, that’s right, When not ITCs numbers The or the are through of staggered talking necessarily these

PTC And the The flying line year. flow and see to you tax are are period cash X producing $X.X the amortize equity The through over correct. more I was same quarter ITC this XX P&L, we proceeds, the can quoted, last more then to million PTCs. years to usually than that there you flying because It’s item. the as

PTC We tax or sell either equity to through through transaction. transfer expect transactions them

We higher have $X.XX level $X.XX. values with on and seen the market moving $X.XX PTCs. to a -- started to It

America $X.XX us Now be on is of Hopefully future. PTCs the Bank from up PTCs. for in we’re will buying to dollar getting more quotes the

There we very go. appreciate right. All Indeed. right. All much. guys Thank you it. I

Thank you.

The from is question next TD with Jeff Cowen. Osborne

questions Just a couple of side. my on

projects of of way incremental or full What facilities some I year some the leverage some breakneck about ‘XX. other if some a flowing there the two you the tax of of Bottleneck, side. hints sort the In calls could a But breadcrumbs to two question, past the lot over you earnings given projects? and the have think, response Assi, the in talk through, ‘XX, get EBITDA you’ve or through in or is talked about of specifically of projects on of model I EBITDA new rebuilds that are Julien through the a Puna was you new as either wondering quantifying? you

that will last and be the be first, built in So operated we add Puna that upgraded assets already quarter, meant in XXXX. XXXX. will million will roughly XXXX XXXX, EBITDA be in of to a adjusted will only $XX

And new project assets of add have EBITDA. side, we Beowawe, operated there EBITDA. will a are $XX largest are in addition Bottleneck, upgrade few dollars then, million of the storage the partially, XXXX, of Montague also over probably to combined which that on will in which that, be million In XXXX, more

hopefully, $XX following which the year means, can, as should guidance we as COD, be if around XXXX, to our $XXX will early this that in of for assets the are So, add EBITDA, year, year were to we that benefit $XXX And then, million the XXXX. after, by $XX adding already start of Company. assets EBITDA, we’ll million million paid assets new from should the million the by the for additional

just then, maybe And follow-up. one

it think margins. about product the was on question I Justin’s gross

the come you mentioned, back. support has Turkish think I

just is particular I’m any program? the have weekend, pretty an to I If A, mistaken. margins that that then, was? think historically, election think, of outcome this But I Turkish curious, B, changes, in how if countries. political the risk election other they there not to two-part your relative were process question, I’m And depressed

to I’m if XX% resuming XX% there’s they starts any curious, talked Turkey So, about? number risks to as just the orders

SO, cannot long and this do on who’s the for what the election. -- win new the last of was signed obviously Turkey in time. elections winner period in a May tariff election, We due But the to the XXth, week. was will what following going is tariff predict feed

think market So, very tariff ago. that that years was a feed in of government on discussion. improving tariff did because stopped a few in market feed stop, discussion the long was the initiated the the saw Turkey I And the the in

hope have requirement be Turkey. we deliver changed previous tell in lot goods it and that will Turkey. facility And year, can the or know, can know required the of production a I a So, in unlike product is you reduced. that Turkey that subcontractors not we as you for -- we in

that So, came the tariff in feed in. very encouraged we’re

this what that the that be We’re already XXth. wins, who stable But been economy after May approached for multiple the everybody’s them. will the the project. more waiting local hope to for and election, will stronger asked, by election. on regardless developers allow to similar the We of in waiting elections We’ve you Turkey,

market, lower are margins, on margin. But with Turkey. very of and good Margins margins. in with portion We do downs. going in projects with be sure we’ll big a large There few the expect other a past able competition take be the to it’s to if supply I’m a significant in had it Turkey, nice ups

any at presenters have turn it I’ll further We comments. the to closing for questions over no time. this

operator. to all to We joining profitable growth. your and deliver forward all. you, our look shareholders you, all for you all continue continued us Thank Thank and support. stakeholders our -- Thank a

Ladies this for gentlemen, participating. and today’s conference you call. concludes Thank

now may You disconnect.