Ormat (ORA) 3 Aug 232023 Q2 Earnings call transcript

Good morning, and welcome to the Ormat Technologies' Second Quarter 2023 Earnings Conference Call. All participants will be in listen-only mode. After today's presentation, there will be an opportunity to ask questions. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. this being note, Please Instructions] event recorded. is [Operator

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

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

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

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

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

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

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

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

second expansion the quarter, financial we profitable results several earnings strong drive portfolio and revenue to delivered and healthy making In continued growth while growth.

for existing commencing a Asset portfolio. electricity, operations energy focus and storage commercial operations development generation, across strategic as while is projects, our we and also us achieving enhance

operations assets. commenced and in we megawatts geothermal, quarter, solar, approximately energy of XXX This storage

We results are the by by seeing an increase campaigns expect plants. initial see Puna, our Olkaria encouraged and in and year-end drilling we're power at to generation in both in we

Our revenues, segment. growth Products and segment displayed significant revenue the resulting margin recovery in for has a expansion notable in

XX geothermal In made Zealand, we the the our Electricity a megawatt segment, Guadeloupe, following New XX expansion PPA. project obtaining in megawatt in plant of addition in to Bouillant we progress construction the significant to successfully commenced power in release

of XX of following geothermal addition, Diego long-term with megawatt signing the commenced San our In PPA we the the project to complex, Arrowleaf Brawley Power. adjacent Community located development solar a

capacity In in three project the storage a facilities, megawatts have XX our combined megawatt/XXX that projects Energy two Texas megawatt/XXX Arrowleaf segment, we Storage hour California battery and released in of for hour. megawatt XXX construction

XXXX, allowing of these to prices. the decline battery be us recent end in We operational by expect advantage of each take to the projects of

As IRA and guidance we the improved look forward, economics increased demand projects, for of our we following the the our see recent assets.

in by growth increase plan. we X result, year-end are the excited to medium-term a growth X.X approximately As gigawatt demonstrating to company's XXXX, our to target by gigawatt confidence X% our

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

Assi?

Doron. you, Thank

growth segment. our Slide over financial highlights of revenue Products in year-over-year, the quarter Let on my X. me second Total XX.X% for up was substantial $XXX.X review start million, reflecting our

gross in quarter $XX.X which lower historically to was margin of gross performance in margin, XX.X%, in margin reduction the of margin operating from the down XXXX gross This second XX.X% is revenue, in on segment driven segment. gross total by Products addition resulted increased Electricity profit for margin quarter the lower the is Second million. XXXX. quarter of The in

$XX.X stockholders to favorably the in the share This the per same share or attributable $X.XX million $XX.X diluted income second or quarter. was the diluted Net quarter in last results to million per company's compares of $X.XX year.

results performance, have solid share. net continue substantial helped the positive a combined Our earnings in going will significant support from per Act, with Inflation on to legislation year-over-year and impact growth This drive Reduction bottom-line forward. income

delivered growth, by Energy to margin million ago, EBITDA our to Storage increased EBITDA the in in by second driven decline compared lower to last in $XXX.X an markets. in million $XXX.X Energy observed Storage Electricity merchant this We X.X% compared second segment mainly which a Adjusted adjusted overcome quarter, year-over-year and of year. year the quarter segment

to our down increase sites, versus on online, revenue increased portfolio in the helped revenue the contributed segment to level at overcome revenue Puna to are and million. This in year. X. Slide revenues and generation CDX Breaking last revenue came $XXX.X This at segment a presented energy our successfully lower quarter. North prices which and X.X% year-over-year lower lower was due by Valley from Electricity expansion the driven temporary Electricity

in In second year-over-year million to increase due the mainly by increased backlog. $XX.X XXX% higher Products consolidated segment, and quarter. represented revenue of revenues was XX.X% the the to The

by segment in improvement margin signed an we segment, Products capture continue we the contracts year. And to the throughout margin improve driven XXXX. improved and that expect in saw the also for We Products

prices PJM quarter million compared decrease second Storage in by The $X.X segment primarily to were the revenues Storage Energy segment the merchant million area. driven was in in of XXXX. $X lower energy

Electricity interruption strong to last of segment second slightly proceeds, for prices same to the year-over-year compared margin in to the period. performance business insurance the year. the quarter. the generation last now energy reduction was helped attributed The was Puna period in our combined negatively for lower due X. the gross weaker in quarter drive down XX.X% also margin facility to The margin with for XX.X% by lower gross year's was compared gross Let's the impacted at to segment move Slide prior-year which step as absence margin The

than XXXX QX gross XX%, this items, two different materially was not in these margin quarter. Excluding

We expect power campaign, help Puna should of the our year, the drilling going end following improve performance which our forward. improved plant a margin from successful towards

XX.X% the second Products margin segment, the higher last margin quarter, notably the year. the X.X% gross of in was quarter in than In gross profit performance

growth our As inflation through to strong normalize, as we produce abate costs margin performance. to segment and continue believe seen continued prices will to Products and experience commodity gross continue that

in Storage of merchant last first impact but margin had XXXX, significant energy a in quarter Energy the a second year. X.X%, during an segment East the performance. margin margin lower the of prices recorded quarter recorded Energy Storage Lower margin from of the gross The reported negative gross the on improvement Coast than

as to [a projects lot of] will margins expect tolling the capacity with agreement (ph) and start operation We improve year. next over

Moving to X. Slide

Ormat of Electricity EBITDA EBITDA XX% The segment a of of both the contributed quarter. consolidated Products of adjusted total at EBITDA the EBITDA breakdown consolidated in adjusted during EBITDA quarter. the X.X% slides. second company in the second provided appendix generated Reconciliation results, the Looking adjusted Storage and segment are and

X. Slide Let's go to

forward. in want attributed P&L the include credits. on balance of Before discussing I discuss impact the going the We income and the two sales our PTC's few in types quarter a PTC and minutes move sheet ITC to data, our benefit I spend line to this of P&L to tax

to active The equity five second quarter, transaction previously, new related second are and we In first tax is tax is the part of PTC not sold transferable one for tax assets in had transactions, the The under we've transferable are we adjusted geothermal PTC the recorded that to which to million included facility that from are signed PTCs related transaction. tax our new yet the million equity equity the that EBITDA. not income, under are equity while partnerships. recordable $XX.X remaining yet kinds of PTCs related two $X.X

investments to The tax credits. of to ITC ITC line in the Storage we $X plans are few ITC line XX% in portfolio, Storage lower storage continually to we online income Energy line the the to are new recorded increase The expect the and our can came segment. to to we eligible that recorded growth In to income in our in energy P&L, with quarter, them are anyone under benefits benefits these provision second needs related hence four the the usually XX% sell benefits report next equivalent facilities the that our facility years, in In million quarter. Energy Storage tax related tax the rate. the

at Looking XX. Slide

cash of Our net debt restricted $XXX approximately compared as June slide breaks million down of XX, of This generated use the XXXX. XX, in illustrating our Cash and profile $XXX use that of billion. cash operation as and equity strong ability service June of this for equivalents equivalents million, note XXXX, maintain. six from has was reinvest XXXX, December approximately the cash and was cash months, debt. to as XX, and $X.X offering, Ormat's cash business and we been funded We the to liquidity by cash

total deferred June was on as Slide XX the in is of stands average its $X debt costs, approximately cost at of billion, appendix. debt of presented the net financing Our XX of payment company schedule X.XX%. and The

loan, Our balance a rate rate sheet nearly remains our liabilities and forms. sheet further floating remaining quarter, which debt we structure, with interest the in all interest off [indiscernible] the reducing setting of carried paid risk second balance rate strong. structured And during fixed

position. quarter as income a a saw interest we financial result of Additionally, material increase healthy the the in during

XX. the half first $XXX had million CapEx growth XXXX, Slide In invested plan. to of to in our advance Moving we cash

our million $XXX cash balance of liquidity line available between have credit. We of and

CapEx detailed include XX appendix. Slide quarters as expected remaining capital in total in million for XXXX of two of Our expenditure, the $XXX the

access capital rates we of in development. Overall, liquidity additional at terms excellent sourcing our and support have to attractive position with capital strong to

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

the the to $X.XX quarterly in addition, pay dividends company of share next expects per quarter. In

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

Assi. you, Thank

segment look Turning for to XX Slide a operating our at Electricity portfolio.

of be which by of addition period. the to the Brady megawatt during provided the continued occurred growth X generation and of XX the facility respectively, the Our and Solar supported operation following they Valley COD capacity North as megawatt positively

through in we increase results strategic year-over-year and lower Our lower managed prices assets. still expansion but the Electricity to revenues to operating impacted at portfolio by were Puna, generation

update Turning our to Slide for backlog. an on XX

our at approximately We beginning year. $XX contracts approximately in have last from stands of significant now with million, the million signed since year improvement seen and $XXX backlog the

by to as XX. Assi Slide merchant rates explained lower was affected energy earlier. The Storage Moving segment at Energy PJM,

facility added hour. In in megawatt California. Pomona new XX the provide started megawatt hour X, grid. second in to started of XX However, of the a CAISO four will July, quarter, facilities combined services our This which operations megawatt/XX of we ancillary XX a capacity megawatt operation

In megawatt three addition, projects growth we storage targets. megawatt/XXX released XXXX hour in new of XXX will add that support

XX% growth Energy megawatts the megawatts XXX Moving of Storage megawatts projects XXX year-end increased year-over-year our to The to we capacity our X midpoint for Slide overall will XX. demonstrating and of achieved We are XXXX. geothermal to gigawatt to growth. be Combining XXXX XXX compared strong. and to capabilities, significant and remains This this unique energy and Energy portfolio, to track demand compared targets. development Storage to of addition with to power Electricity on at to representing XXXX our plants gigawatt improve XXX well solar capacity target X.X XX close the megawatts through

positive the display have released in project Slides the made hybrid currently the Arrowleaf XX Solar and projects, New and PPA. for Guadeloupe, the underway. XX Bouillante and PV X Zealand and progress two U.S., We in the geothermal Topp construction in geothermal a we projects following in solar

highlight XX the of our the and Slides Storage XX next plan, growth layer deck. Energy

of Slide mentioned and projects. as earlier, Howell, operation successfully presented we XX, commenced As Bowling and Green on Upton, the I Andover,

in -- commenced operation X we California. July, Pomona Additionally, on of in

megawatt/XXX portfolio We actively hour. projects have will XXX exceed operating combined our and gigawatt hour the six X current underway, totaling assets, today megawatt the with

Our robust and energy hour capacity. gigawatt of X.X remains at storage stands gigawatt/XX.X pipeline

discussion a XXXX for guidance. turn of Please XX to Slide

guidance, and million, a $XXX includes between revenue are to million XX% which range year-over-year. $XXX We full our reiterating to year XX% representing increase

a Electricity X% the million, revenues the $XXX expected at to segment, are be midpoint. $XXX Within between increase million and

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

remarks Slide prepared our end will I XX. on

half first adding have of capacity. our growth of are targets, our and XXX starting approximately XXXX with construction the results towards megawatt the capacity XXX We with we pleased of of megawatt progress and new new in generation new approximately are satisfied made

of and under to We PTC IRA. to benefit for achieving our growing to we will goal XXXX. to by forward continue continue and renewable gigawatt the demand to beneficiary the be energy and expect We from storage, year-end ITC of gigawatt X X.X look

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

This concludes prepared remarks. our

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

Thank comes you. go [Operator ahead. from Instructions] with of Please Noah Your question line the Oppenheimer. Kaye

Good questions. the morning. for Thanks taking

the extent, cadence the first just explain recovery half on To full Electricity just So, given help Electricity lower improvement the Just generation? back this what of maybe that year outlook? Puna over what the of reiterating results, you're year? understand drove was us planned,

Doron. you. bit Puna, Effectively is it as thank In happened in you have the know, campaign. we drove generation Noah, It's drilling continuously what Hi, been low.

rate the reduced part impacted the its One the pricing. the is one of that other well and flow hand, revenues on

As you tied know, Puna to are that have in XX the costs. megawatts avoided we

last still big ongoing, megawatt they And so and remember, That were almost in between but now but there Today, it's a war stand Ukraine. impact. Russia less per $XXX at Some might was year, news. $XXX, time a of about us is the that not was that hour. pricing big

that initial see [indiscernible] drilling are connected or temperature at beginning initial it positive. we are finished of and should QX, and we the pressure we the However, very the be it, connecting and outcome

So, that we despite the that the we in guidance overall, will the Puna QX, be at see we -- on of beginning gave that within year. impact we the

Yes.

there a be extent, So, there, it the it quarter. fourth the pickup would sounds to is real like, in

portfolio all higher it Okay. driven year-end looks And like by targets, the that's then, upsizing 'XX storage. really

Ormat; storage increasing on forward? So, and implications bit the sort of the a about the around confidence gives you can and maybe, your going storage outlook; developments economics little project talk what guidance strong you for the storage in thoughts treasury of just drivers for ITC on

the very can You are expect digits. We projects and to projects this already right. continue to somewhere due quarter to release. in the released and see We see return increased storage and get high-single to guidance storage return we've the double returns that -- the good future that we digits that equity today

that view that The can the improved are IRA with IRS the that It Storage came has They on three sell. the can backwards. guidance they guidance out issued for The significantly. only. years ITC is cash be used

trade the to released of So, the that, cannot and improved value today with of We a XX% between and us up; the them. that buyer. with to impact They were project. see And, the allowed significant have that obviously be ITC this Most do went returns. ITC. seller you are a project

We battery last also the the saw the reduction in quarter in prices.

we reality, or pricing we So, and that allowed the to all the risk projects. for battery weeks the in price between more minute to And have. within a this should we appeal few and in reducing after batteries increasing we release a release reduces to confirm that, fix that the pay, us ITC that all, quarter the project,

project, that Noah, Especially it allow a is the more maybe be the customers scrambling understand built in California, see the start developers lot we've significantly but to seen, Assi. interconnection. Again, at the would years before. contracts. level how of signed I RA This now pipeline one are and weeks get just RA/tolling will tolling will I tolling sign, tough construction over actually highest A it's in thing. now And is higher believe Ormat highest operating our start the getting even to prices X of in really us one we what we've next hopefully, the under Pomona higher still seen. Bottleneck. negotiation, than than that with think, few that we

more. And helpful. one just Very maybe

sensing development disruptive the techniques, I what industry. innovation? to like in think addressable in Ormat been has your a that days drilling kind the perspective sounds And some of the perspective, the fairly the It of and is early industry technology interested extent some around very but on from new news in innovations in technology on of happening geothermal awash participating maybe market. here, expanding side

are leading We in is Ormat -- the geothermal. company

new that be increase any to Ormat. geothermal build spread will geothermal to the drive more development facilities huge and is So, upside for widely ability a

As you very closely. said, still most commercially not early we watching are available, been of in these items but it stage, are have fully

start-ups an And will it. we energy to to XX/X sure are be We looking would renewable been it, geothermal that we would that this energy if have because if able the assume technology, it's I would energy and see different there I have utilize that at specific be new to a energy. renewable today -- that ability make keep we say, have everywhere, only a people

looking we that we changed that have at are dial far, the and soon. be one haven't So, come will that there Unfortunately, so it will hope closely. we very seen one

the stay for questions. All tuned. right. taking Will Thanks

Thank you.

thank Great, you.

next of Clare with ahead. from ROTH Please go comes Your question the Justin line MKM.

Yes, morning. good

other could the possibility So, evaluating? the that progressing started if projects timeframe? could little prospects was I bit and of XX you're say, could you released that in that let's might about the geothermal that's other in, you completed Zealand. project construction just potential have geothermal And that for terms be had be pipeline. I in you development speak on be your How start what those for and more indicated a XXXX wanted construction wondering New to megawatt on

question. for you thank the Hi,

how demand U.S., that years projects. of the to than takes You have to the mentioned. we XXXX a list that, don't tell can and you see discussed The the projects significant the I that lot we have on discussions the forward internally, we in already develop longer a push slide the we have X.X due quite if timeframe, of geothermal have project resource. can you

lot we of So, are a doing now quite exploration.

our our efforts, develop drilling to seven exploration team and were and it. doubled have locations order tripled We between to five exploration in parallel today in

where are top quite the we drilling on lot Indonesia, are we U.S., two of in working And a in locations.

end somebody them are other the looking that for geothermal of develop only not that can for At certain. places, renewable XX/X, also is One developer of other is energy, the the in end And might day, it in but XXXX, and geothermal geothermal. have of looking countries the wants get to we're projects. the that's which

other but be is ready this So, yet and we in negotiating countries, discussing not are to discussed.

helpful. to maybe shifting great. That's Okay, just And then, Products the segment.

You indicated segment expect the to year gross margins Products throughout improve you here.

I think was what QX you in that speak you to trend previously just the gross to had anticipate for in you range XX% margin possible QX? XX% of you about range Maybe, there. talked terms into getting expect could Do a XX% there. and

morning, Justin. Good is Assi. This

throughout So, year. to yes, looking XX% the towards XX% are we to the go

will higher because they New were to signed in margins to I sign in at margin. As in a say saw that we last we signed the better no projects -- you do And know, going in, margin Turkey, should improve away we new we these continue what we QX, are margin. XX% as margin. and contracts Already, years. from had Zealand continue this the year the And see and all basically I XXXX and in kicking to few last stay that had as than that will time, hope close contracts

And okay. just it, one on Storage. Got then, the

speak component, how know there. merchant segment. that is margins could the PPAs to you with for a for might in the have I in QX QX? you've gross more into better and maybe the could have I might you margin to the projects was there but you Do if added visibility you just So, segment. wondering Storage the trend here visibility speak that still sense

and projects when The have contracted I in the those and which in XX% look have areas we the tell slightly can to XX% do operate, other are see between new them. year, sign I We the next see in But to ERCOT you mostly margin PPAs let's some we we the do signing somewhere area. improvement that that in starting don't higher now, that contracts improvement PJM. may So, is margin. at in we QX, we'll kick energy prices gross in Olkaria PPAs expect and be more gross much will visibility. two

have fixed I between see when will So, expect, But in look I with X in when to Pomona to margin coming Storage QX we agreement in year-end, some tolling operating I Bottleneck the margin. the base with projects in pick new late next margin. the XX% and eventually because hope now seeing improvement will and costs kicks XX% start and in year, we business. also we to around will up get XX% full in have of EBITDA too, the

Okay, you. very helpful. Thank

comes ahead. looks from from All It you right, go Dumoulin-Smith next please America. Julien thank for that. our like Bank Julien, question of

first Hey, I guys, Lochridge Julien. is wanted Good for actually on just Storage. this morning. on starting ask Cameron to

put So, to year? how call, to I digits. to Day that off, in nice terms trending referring on I went ask, a heard getting see wanted Storage does guys single increase of And to Investor raised related here what at this question, the wanted you XXXX -- the how that 'XX hear clarify the XXXX believe there. I those that. high on in in Congrats or earlier -- phone are reaching out you laid targets quarter. last this my us targets just were just returns guys Maybe in then, we

Thank you.

forward we're more the as margin gets Storage grow the will projects, us online bidding grow gave stronger -- The the it's grow between process and going contracts. Analyst well projects the for and the PPA as the will a and that of more we And And contracts, obviously, Storage on the permitting So, XXXX. closer expect on the EBITDA. part, a the it will process, RA with on gross takes merchant time. be that more do balanced we Day in and portfolio profitability do to connection we guidance

we the that Obviously, projects said high-single digits. returns see. with range is this that is the we I Today, returns on high-single ITC, what if see project Storage. in of the are the returns, the the On digit

today's on look that higher interest you than environment. in rate If equity even return, are they

So, get low very single digits. double digits can you high to or

Got it. that. for much Thank you very

still it this target, do Just point, to like stand, sounds changes put no 'XX a there? finer you

Yes.

great. in strong Okay, backlog on Obviously, revenue year-over-year, growth Products. touch to I and but And did wanted just then, decline backlog quarter-over-quarter. briefly

wanted you Just going for a sequentially into -- to trending kind and the some get are of how half the of seeing what kind leading that indicators sense back year here of business forward? for that

the because the a On segment, you Products when quarter-over-quarter contract. is the date it's specific analysis complicated sign

So, or quarter-over-quarter might be up down.

QX a specific expect and by we We quarter. contracts a in quarter, sign both will future we another be backlog end Zealand will within sometimes will in which But, finalized are today few in New contracts, be And of year. start the negotiating the in these to be signed it and then hope later bit you Turkey, higher. and or little

and here, look the to at usually we goes year back, some up. from at try look trends the we when it see backlog, So,

Got it.

Okay. Perfect. That'll Thank all be you for me. all.

Thank you.

Jeff right. looks we more one Osborne Please at go from Cowen. have It All TD question like ahead.

might think based to year, of good the about this, about flowing that the P&L tax and wondering project this was in how then, credits, have and Hey, but morning. I think half monetization second how the the on cadence, through the of to next missed year? that just I

Assi. morning. good This Jeff, is

those bring credit, to that ITC's the Storage mostly the at related look online. you when are assets currently, we So,

of at and projects look that early remaining between of see list you appendix, was the came can you QX. the X the And, Storage that will that we now Pomona one you year. in see the the basically, if So, have

booking coming of $X.XX is ITC. on $X.XX, QX market So, We're the $X.XX currently in going that are per what at I those the $.X.XX, earlier. alluded benefits There indications should expect from we tax. it based to

on credits, a we As will for year us. positive very ITC this be XXXX into look

you can the see on projects, We Storage and this have the slide, Montague. three Bottleneck project, Flemington East as

million. ITC. close Bottleneck $XXX think three, I XX% is CapEx to the has between

can expect company to definitely per significant next of add year, and $XX we math, the the earnings you cash million, do base, can XX% provide So, On the to do if our $XX over also of value it ITC math, you the business. a credit. share lot of million

the we few as to do we are to PTCs, mentioned, this equity expecting year, tax transactions. Moving

So, continue and the rise be it we bring online. will we be year Beowawe the tax will addition assets U.S., more year, -- next equity next in as biggest When look income repowering. more the should the and at

While equivalent it's PTC. a megawatt plant repowering be X the of to full will roughly XX megawatt actually and slide, project facility will entitled be a in it's that to a the it

value. will add that So, PTC to our

do On it tax $X discontinue because that the in this PTCs. of years the operation to other hand, of reached $XX we XX year, and historical have an equity transaction is basically contributing basically end will it to almost around annually million million

equity then, tax that what one a million up year But transaction all least in at the kicked on in $XX projects is reduction hand. year, make plus the Beowawe we this next see So, for it. will should

slightly should up numbers. we flat year-over-year, see with So,

cash PTC a year-over-year; support to will should will the and ITC be be bottom-line, So, extremely next of growth. year; lot to all bring our of company it very significant close

follow-ups. legacy Maybe project $XX which to is two helpful. the million, quick That's See just million that? $X

Forgot. I the will back after call. come to you

Okay, no you map? an as should characterized Quite energy final worries. an is, give will extra Nevada, And we then, it's the of bit new maybe the community, energy a question about XX%. which think how community

capture extra not energy XX%, mentioned, now a targeting necessarily? to So, community specifically testing. to on proverbial drilling that that you some try roadmap you areas go, Are that are you have and accelerating or you Doron, where to

map. the follow doesn't underground resource the Unfortunately,

that PPA develop which have. looking resource, to a supports say we that would the of very we this it So, develop we're development will geothermal XX%. we geothermal whenever see a wherever is regardless But up, I to XX%, upside. regardless continues of additional go nice of the pricing today,

color. the Appreciate Thanks.

may But have will that, the the think from benefit so we being on Regardless With returns lucky. assets we do PTC. about project. are said, XX%, sitting or good. the plus do that are get $XX But We may that if of we it. you the

of surprised big part is very Nevada community. are energy the part of We of how

XX%. many we Storage, entitled XX% in this the Bottleneck biggest lucky that's assets in assets to addition right our also that respect project we Rio released were With both the have to to Storage are quarter, Lower two entitled ITC very Bird criteria. of which XX% and to to is Dog now, is And our which

So, because will PTCs it years on tax historical liquidity carry benefit high and the of looks profits the credits companies. be of other to like back that community the the we of from three the extremely energy top of the expectation will ITCs versus ability

much. so Thanks all had. I That's

Great, thank you.

another from ahead. Podhaizer go from question have Barclays. We Please Derek

good Hey, morning.

one question from me. Just

You an talked prices area of about battery being relief.

to get your temporary prices a think in? to would inflation creep is sense long-term down? Or next wanted few prices this structurally Just and about over and battery outlook. some back the expect on you thoughts overall you these Just years? of stepped what Have do

batteries prices other that pricing you time PO. What sign tied a fixed order we've would that getting to where actual as the in pricing are fact time, the the elements. to and seen are -- long-term the issue shift as is lithium you order the only when battery well of fixed over would And prices you contract the suppliers a from contracts, until

year-and-a-half, year, another prices, up last believe, went went down Lithium over the XXX%, I up went XX%, XXX%.

should right of fixed. to But work, And pricing, working. the cash ready prices with and developer the but that be the the appeal not frame once think might PO. regardless It the not I issue issue the then of we battery lowest to day, it --- project are PO, end if of once do obviously agreement you have the the highest. the are the that's the time important is at you the project economics the be battery the economics

way it. see. the basically that that's and So, we returns do by start frame simultaneously issue we we sign at when agreements in look lock of a We and project, PO that, the we construction the

Great. back. the turn color. I'll Appreciate it

back closing now Great, call over thank will to for the you. I remarks. turn Blachar Doron

hour future geothermal coming started Storage our solar projects you, that and grow XXX megawatts you. to to target projects work that of end and megawatts business allows and and will stored strong of represents geothermal XXX all. and solar online, XX of These and continuous quarter Thank us Thank support Energy for a construction quarter. XX the this was the and of increase megawatt/XXX our growth megawatt energy XXXX. of with our megawatt This

you, Thank everyone.

and you. today's Thank that Thank joining. for gentlemen, concludes all you call. Ladies

disconnect. now may You