Jan. 31 (Bloomberg) -- Ormat Technologies Inc., a U.S. developer of geothermal energy, dropped the most in more than five months after saying yesterday that revenue will decline by almost $50 million over the next two years.
Ormat fell 7.4 percent to $16.23 at 11:08 a.m. in New York, the most intraday since Aug. 8. Revenue for this year will decline by an estimated $24.8 million after forecasted natural- gas prices used in several power-purchase agreements were cut, the Reno, Nevada-based company said in a statement yesterday.
Revenue in 2013 is expected to fall by an estimated $24.9 million.
The 2012 cut “represents approximately 5.9 percent of the company’s forecasted 2011 total revenues,” the company said in the statement. Ormat expected sales of $415 million to $425 million for the year, according to a statement in November.
The company will provide guidance for 2012 when it issues its 2011 fourth-quarter earnings report, scheduled for February 22.
Ormat’s contracts for its Heber 1 and 2, Ormesa, and Mammoth power plants in California were affected by a decrease in gas-price forecasts and the delay of the state’s greenhouse- gas cap-and-trade program, which is now expected to begin in 2013, according to the statement.
Ormat is a unit of Yavne, Israel-based Ormat Industries Ltd., which fell 4 percent to 17.25 shekels at the close in Tel Aviv today, its lowest price since October 2004
--Editors: Will Wade, Jessica Resnick-Ault
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