(Updates with share price in third paragraph.)
Jan. 30 (Bloomberg) -- Ormat Technologies Inc., a U.S. developer of geothermal energy, said revenue will decline this year after forecasted natural-gas prices used in several power- purchase agreements with utilities were cut.
Revenue in 2012 will fall by an estimated $24.8 million, the Reno, Nevada-based company said today in a statement. The reduction represents about 5.9 percent of forecasted 2011 revenue. Still, 2012 revenue is expected to equal or exceed last year’s, according to the statement.
Ormat fell as much as 3.7 percent to $16.86.
Ormat’s contracts for the power plants Heber 1 and 2, Ormesa, and Mammoth in California were adversely affected by a decrease in gas-price forecasts and the delay of California’s greenhouse gas cap-and-trade program, which is now expected to begin in 2013, according to the statement. Revenue in 2013 is expected to fall by an estimated $24.9 million, the company said.
The company may seek to modify some of the contracts to fixed pricing that’s not subject to the same factors, which are “uncertain,” Ormat said. The company’s official guidance for 2012 will be provided in its 2011 fourth quarter and year-end earnings announcement scheduled for February 22, according to the statement.
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