Ormat Technologies Inc (ORA) 2023 Q4 法說會逐字稿

Good morning, and welcome to the Ormat Technologies fourth quarter and full year 2023 earnings conference call. (Operator Instructions) Please note that this event is being recorded.

早上好，歡迎參加 Ormat Technologies 第四季和 2023 年全年財報電話會議。（操作員說明）請注意，該事件正在被記錄。

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

我現在想將會議交給 Alpha IR 的 Josh Carroll。請繼續。

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

謝謝你，接線生。今天與我一起參加電話會議的是執行長 Doron Blachar；阿西‧金茲堡 (Assi Ginzburg)，財務長；以及投資者關係和 ESG 規劃與報告副總裁 Smadar Lavi。

Before we begin, we would like to remind you that information provided during this call may contain forward-looking statements relating to current estimates, current expectations, estimates, forecasts, and projections about future events that are forward-looking as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally relate to the company's plans, objectives, and expectations for future operations and are based on management's current estimates, and projections, future results, or trends.

在我們開始之前，我們想提醒您，本次電話會議期間提供的資訊可能包含與當前估計、當前預期、估計、預測和對未來事件的預測相關的前瞻性陳述，這些前瞻性陳述在私人證券中定義1995 年訴訟改革法。這些前瞻性陳述通常與公司的計劃、目標和未來營運預期相關，並基於管理層當前的估計和預測、未來結果或趨勢。

Actual future results may differ materially from those projected as a result of certain risk and uncertainties. For a discussion of such risks and uncertainties, please see risk factors as described in Ormat Technologies' annual report on Form 10-K and quarterly reports on Form 10-Q as filed with the SEC.

由於某些風險和不確定性，未來的實際結果可能與預測的結果有重大差異。有關此類風險和不確定性的討論，請參閱 Ormat Technologies 向 SEC 提交的 10-K 表年度報告和 10-Q 表季度報告中所述的風險因素。

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

此外，在電話會議期間，該公司將介紹非公認會計準則財務指標，例如調整後的 EBITDA。昨晚發布的新聞稿以及網站上發布的幻燈片中闡述了與最直接可比較的公認會計準則衡量標準的對帳以及提供此類資訊的管理原因。由於這些指標並非根據公認會計原則計算，因此不應將其與根據公認會計原則編制的財務報表分開考慮。

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

在將電話轉交給管理層之前，我想提醒大家，可以在公司網站 ormat.com 的「投資者關係」標籤上的演示連結下訪問本次電話會議附帶的幻燈片演示。

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

話雖如此，我現在想將電話轉給 Doron Blachar。多倫，電話由你接聽。

Thank you, Josh, and good morning, everyone. Thank you for joining us today. Ormat concluded 2023 on a positive note as its fourth-quarter results finishing off a successful year. The company reported robust fourth-quarter revenue growth with a 17.4% increase compared to the previous year's quarter and commendable 11.5% rise in adjusted EBITDA.

謝謝你，喬什，大家早安。感謝您今天加入我們。Ormat 以積極的姿態結束了 2023 年，其第四季度業績為成功的一年畫上了圓滿的句號。該公司公佈第四季度營收強勁成長，與去年同期相比成長 17.4%，調整後 EBITDA 成長 11.5%，值得稱讚。

Throughout the year, Ormat maintained its momentum with the successful development execution and enhanced operational performance from existing facilities, coupled with a promising recovery in the product set. These factors collectively contributed to a 13% increase in total annual revenues and a 10.6% increase in full year adjusted EBITDA.

在這一年中，Ormat 憑藉著成功的開發執行和現有設施營運績效的提高，以及產品組合的良好復甦，保持了發展勢頭。這些因素共同推動年度總收入成長 13%，全年調整後 EBITDA 成長 10.6%。

Throughout 2023, at the beginning of 2024, we successfully augmented our capacity by adding 239 megawatts through development projects and acquisition. Among these portfolio additions, 157 megawatts were integrated into the electricity segment, comprised of 100 megawatt of geothermal and solar PV assets acquired in January 2024, and 82 megawatts from the addition of five new storage facilities to the storage segment. This expansion aligns with our multiyear capacity expansion targets, further strengthening our EBITDA and earnings generation in 2024 and beyond.

2023 年至 2024 年初，我們透過開發案和收購成功增加了 239 兆瓦的裝置容量。在這些新增的投資組合中，157兆瓦被整合到電力部門，其中包括2024年1月收購的100兆瓦地熱和太陽能光伏資產，以及82兆瓦來自為儲存部門增加的五個新儲存設施。此次擴張符合我們的多年產能擴張目標，進一步增強我們 2024 年及以後的 EBITDA 和獲利能力。

Since the beginning of 2023, we have signed four long-term PPAs for a total of 98 megawatts in our electricity segment and 55 megawatts or 180 megawatt hour in our growing energy storage segment. As we continue to successfully execute against our growth strategy, we expect the benefits of improved generation capacity and our team's demonstrated ability to sign PPAs with attractive pricing terms will continue to support solid returns and earnings performance for our shareholders as we head into 2024.

自 2023 年初以來，我們已簽署了四份長期購電協議，電力領域總計 98 兆瓦，不斷成長的儲能領域總計 55 兆瓦或 180 兆瓦時。隨著我們繼續成功執行我們的成長策略，我們預計，隨著我們進入2024 年，發電能力提高的好處以及我們團隊以有吸引力的定價條款簽署購電協議的能力將繼續為我們的股東提供穩健的回報和獲利表現。

In our product segment, we are encouraged by the recovery we saw in 2023. Annual product segment revenues grew 87.3% versus 2022, and our increased backlog of $152 million is representative of the growing global demand for our geothermal product. We expect this healthy demand combined with our industry leadership position to allow us to continue competing and growing our presence in key strategic regions.

在我們的產品領域，我們對 2023 年的復甦感到鼓舞。產品部門的年度收入比 2022 年增長了 87.3%，我們的積壓訂單增加了 1.52 億美元，這代表了全球對我們地熱產品不斷增長的需求。我們預計這種健康的需求與我們的行業領導地位相結合將使我們能夠繼續競爭並擴大我們在關鍵戰略地區的影響力。

Looking ahead to 2024, we expect to continue capturing the benefits of our successful growth strategy. We are on track with our capacity expansion in both the electricity and the storage segments with a potential to reach between 2.1 gigawatt to 2.3 gigawatts across our portfolio by end of 2023. We anticipate a significant increase of 7% and 10% in revenues and adjusted EBITDA, respectively, for 2024.

展望 2024 年，我們預計將繼續受益於我們成功的成長策略。我們正在電力和儲存領域進行產能擴張，到 2023 年底，我們的產品組合預計將達到 2.1 吉瓦至 2.3 吉瓦。我們預計 2024 年營收和調整後 EBITDA 將分別大幅成長 7% 和 10%。

We continue to see strong support for renewable energy backed by the IRA benefits, including the PTC for geothermal and ITC for storage. We expect this support will continue to create opportunities for new PPAs in both the electricity and storage segments and expect that these benefits will continue to reduce our capital needs and to help fund our growth strategy and enhance our EPS in 2024 and beyond. The current environment carries encouraging tailwinds supporting demand for geothermal and energy storage, driven by global decarbonization efforts and the collective push to utilize the world's renewable energy resources to reduce greenhouse gas emissions and combat the impact of climate change.

我們繼續看到 IRA 福利對再生能源的大力支持，包括用於地熱的 PTC 和用於儲存的 ITC。我們預計這種支援將繼續為電力和儲存領域的新購電協議創造機會，並預計這些好處將繼續減少我們的資本需求，幫助為我們的成長策略提供資金，並提高我們在2024 年及以後的每股收益。在全球脫碳努力以及利用世界再生能源減少溫室氣體排放和應對氣候變遷影響的共同努力的推動下，當前的環境帶來了支持地熱和能源儲存需求的令人鼓舞的順風車。

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

現在，在我提供有關我們的營運和計劃的進一步更新之前，我將把電話轉給阿西，以審查財務表現。阿西？

Thank you, Doron. Let me start my review of our financial highlights on slide 5. The fourth quarter marks another strong finish to an overall excellent year in 2023, creating positive momentum as we head into 2024 and positioning us well as we aim to deliver on our multiyear financial and operating targets.

謝謝你，多倫。讓我開始回顧投影片 5 中我們的財務亮點。第四季標誌著 2023 年整體出色的一年又一個強勁的收官，為我們進入 2024 年創造了積極的勢頭，並為我們實現多年財務和營運目標做好了準備。

Total revenue for 2023 was $829.4 million, up 13% year over year. And the revenue for the fourth quarter was $241.3 million, marking 17.4% growth year over year. This fourth quarter and full year results represent solid growth across both our electricity and product segments.

2023 年總營收為 8.294 億美元，年增 13%。第四季營收為2.413億美元，年增17.4%。第四季和全年業績代表了我們電力和產品領域的穩健成長。

Across the full year 2023, our adjusted EBITDA result of $481.7 million, increased 10.6%, compared to $435.5 million in 2022. Our record fourth quarter adjusted EBITDA results of $139 million, increased 11.5%, compared to $124.7 million in the fourth quarter of last year. Year over year, the growth in adjusted EBITDA was largely driven by an increase in revenue in electricity and product segments, combined with a larger contribution from tax equity transactions.

2023 年全年，我們調整後的 EBITDA 表現為 4.817 億美元，比 2022 年的 4.355 億美元成長了 10.6%。我們創紀錄的第四季度調整後 EBITDA 業績為 1.39 億美元，與去年第四季的 1.247 億美元相比成長了 11.5%。與去年同期相比，調整後 EBITDA 的成長主要是由電力和產品部門收入的成長以及稅收股權交易的更大貢獻所推動的。

In the full year 2023, net income attributed to the company's stockholders was $124.4 million, or $2.08 per diluted share. This representing an increase of 88.9% and 77.8% versus the prior year, respectively. On an adjusted basis, net income attributable to the company's stockholders was $121.9 million or $2.05 per diluted share, an increase of 32.2% and 25% versus the same period last year, respectively. The significant year-over-year earnings growth was driven by higher operating income, further supplemented by the impact of the IRA benefits that flow through our tax line.

2023 年全年，歸屬於公司股東的淨利潤為 1.244 億美元，即稀釋後每股收益 2.08 美元。與前一年相比分別成長 88.9% 及 77.8%。調整後，歸屬於公司股東的淨利為1.219億美元，稀釋後每股收益為2.05美元，較去年同期分別成長32.2%及25%。獲利年增率顯著成長是由較高的營業收入推動的，並進一步受到流經我們稅項的 IRA 福利的影響。

In the fourth quarter of 2023, net income attributed to the company's stockholders was $35.7 million or $0.59 per diluted share in comparison to $18 million or $0.32 per diluted share in the same quarter last year. On an adjusted basis, net income attributable to the company stockholders was $40.5 million or $0.67 per diluted share compared to $41.2 million and $0.73 per diluted share during the fourth quarter of 2022. Quarter over quarter earnings was impacted by a higher effective tax rate.

2023 年第四季度，歸屬於公司股東的淨利潤為 3,570 萬美元，即稀釋後每股收益 0.59 美元，而去年同期為 1,800 萬美元，即稀釋後每股收益 0.32 美元。調整後，歸屬於公司股東的淨利潤為 4,050 萬美元，即稀釋後每股收益 0.67 美元，而 2022 年第四季的淨利潤為 4,120 萬美元，稀釋後每股收益為 0.73 美元。季度獲利受到有效稅率提高的影響。

Moving to slide 6, we break down the revenue performance at the segment level. Electricity segment revenue increased by 5.5% to $667 million and 11.3% to $184 billion in the year in the fourth quarter of 2023, respectively. This increase was largely driven by the new project that came online in 2022 and the commercial operation of our numerous geothermal solar PV and energy storage project. This include the Heber 1 geothermal power plant, which went online in May 2023. The quarter also benefited from improved generation at Puna power plant that had been operating at lower capacity in the first three quarters of 2023.

轉到投影片 6，我們細分了細分市場層級的收入表現。2023年第四季，電力部門營收分別成長5.5%至6.67億美元及11.3%至1,840億美元。這項成長主要得益於2022年上線的新項目以及我們眾多地熱太陽能光電和儲能專案的商業營運。其中包括 2023 年 5 月上線的 Heber 1 地熱發電廠。該季度也受惠於普納發電廠發電量的改善，該發電廠在 2023 年前三個季度一直以較低的容量運作。

In the product segment, revenue marked a substantial increase, growing by 87.3% to $133.8 million and by 56.7% to $50.4 million in full year 2023 and in the fourth quarter, respectively. The growth in our product segment was primarily due to the new contracts that are reflected in the higher backlog and the timing of revenue recognition versus the prior period.

在產品領域，營收大幅成長，2023年全年及第四季營收分別成長87.3%至1.338億美元和56.7%至5,040萬美元。我們產品部門的成長主要是由於新合約的增加，這反映在與上一時期相比，積壓訂單增加以及收入確認的時間安排。

Energy storage segment revenue decreased by 6.8% to $28.9 million in the full year 2023 and by 14% to $7 million compared to last year's fourth quarter. Lower year-over-year segment revenues was driven primarily by lower revenue in the [PJM] and Kaiser markets as merchant rates were lower than 2022. New facilities that came online during the year partially offset the impact of weaker merchant prices.

2023年全年儲能部門營收下降6.8%至2,890萬美元，與去年第四季相比下降14%至700萬美元。部門收入較去年同期下降的主要原因是 [PJM] 和 Kaiser 市場的收入下降，因為商家費率低於 2022 年。今年上線的新設施部分抵消了商業價格疲軟的影響。

Moving to slide 7. The gross margin for the electricity segment was 36.6% and 39.5% in 2023 and fourth quarter, down 20 basis points and 400 basis point, respectively. The decrease in full-year margin performance was mainly due to business interruption of $15.6 million recorded in 2022 compared to $6.3 million recorded in Q1 2023 related to the EBITDA in the Puna power plant, as well as revenue at Puna due to lower generation in energy prices.

轉到投影片 7。2023年和第四季電力板塊毛利率分別為36.6%和39.5%，分別下降20個基點和400個基點。全年利潤率表現下降的主要原因是2022 年記錄的1,560 萬美元業務中斷，而2023 年第一季記錄的與普納發電廠EBITDA 相關的630 萬美元，以及由於能源發電量下降導致普納收入下降價格。

In the quarter, the reduction was mainly driven by $6.4 million of business interruption income recorded in Q4 2022 related to Heber 1. In the product segment, gross margin was 13.4% and 12.6% in the full year of 2023 and the fourth quarter, respectively, down 190 basis points and 1,000 basis points. Margin decrease due to lower profitability associated with contracts that were signed during 2021 and 2022, partially offset by new contract with higher margin that were signed in 2023.

本季減少的主要原因是 2022 年第四季記錄的與 Heber 1 相關的 640 萬美元業務中斷收入。產品板塊，2023年全年及第四季毛利率分別為13.4%及12.6%，分別下降190個基點及1,000個基點。利潤率下降是由於 2021 年和 2022 年期間簽訂的合約相關的盈利能力較低，但部分被 2023 年簽訂的利潤率較高的新合約所抵消。

Looking forward, we expect our products segment margin to be between 15% to 20%. The energy storage segment reported a full year gross margin of 6.4% compared to 21% in the prior year. The reduction was driven by significant pullback in merchant prices in the East Coast compared to last year's observed market-driven pricing strength.

展望未來，我們預計我們的產品部門利潤率將在 15% 至 20% 之間。儲能業務全年毛利率為 6.4%，上年度為 21%。與去年觀察到的市場驅動的定價強度相比，東海岸的商業價格大幅回落，導致了這一下降。

In the fourth quarter of 2023, margin was negative 8.9% compared to positive 11.7% year over year. As we enter 2024, we expect improved margin rising to between 10% to 15%, supported by the Pomona 2 PPA that was signed this year and the [COD of Bottleneck], which also carry fixed-price tolling agreements.

2023 年第四季，利潤率為負 8.9%，而去年同期利潤率為正 11.7%。進入 2024 年，在今年簽署的 Pomona 2 PPA 和 [瓶頸 COD]（也包含固定價格收費協議）的支持下，我們預計利潤率將提高至 10% 至 15%。

Looking at slide 8, the electricity segment generated 94% of Ormat total consolidated adjusted EBITDA in 2023. The product segment generated 4% of -- and the energy storage segment reported adjusted EBITDA of $9.9 million, representing almost 2% of total adjusted EBITDA. Reconciliation of EBITDA and adjusted EBITDA are provided in the appendix slide.

從投影片 8 可以看出，到 2023 年，電力部門產生了 Ormat 合併調整後 EBITDA 總額的 94%。產品部門產生了 4% 的收入，而儲能部門報告調整後 EBITDA 為 990 萬美元，幾乎佔調整後 EBITDA 總額的 2%。附錄投影片中提供了 EBITDA 和調整後 EBITDA 的調節表。

Moving to slide 9. In the fourth quarter, we recorded $18.7 million in income related to tax benefits, for which $14.7 million was income related to five active tax equity transaction, while the remaining $4 million is related to transferable PTC, which were recorded in 2023 under the provision of the Flexure Reduction Act.

轉到投影片 9。第四季度，我們記錄了1,870 萬美元與稅收優惠相關的收入，其中1,470 萬美元是與五項活躍稅收股權交易相關的收入，而其餘400 萬美元與可轉讓PTC 相關，這些收入是在2023 年根據規定記錄的減少彎曲法案。

The income related to tax benefit increased this quarter by $11.2 million compared to the same period last year. For the full year, income related to tax benefits increased by $27.2 million. Also, in the fourth quarter and full year 2023, we recorded $1.4 million and $18.7 million of ITC benefit in the income tax line related to new storage facilities that COD this year.

本季與稅收優惠相關的收入與去年同期相比增加了 1,120 萬美元。全年與稅收優惠相關的收入增​​加了 2,720 萬美元。此外，在 2023 年第四季和全年，我們在與今年 COD 新儲存設施相關的所得稅項目中記錄了 140 萬美元和 1870 萬美元的 ITC 收益。

For fiscal year 2024, we expect an annual approximately $5 million to $10 million reduction in PTC recorded under the income attributed to the sale of tax benefit line of the P&L due to the termination of one of our tax equity transaction that reach the flip date, offset by new transaction we expect to sign related to [Heber and Brawley]. We also expect to record $40million in ITC benefits to our storage facility under the income tax line.

對於 2024 財年，由於達到翻轉日期的一項稅務股權交易的終止，我們預計損益表的稅收優惠項銷售收入項下記錄的 PTC 每年將減少約 500 萬至 1000 萬美元，我們預計簽署的新交易將抵消[赫伯和布勞利]。我們也預計在所得稅線下為我們的儲存設施帶來 4000 萬美元的 ITC 收益。

The way we plan to record the ITC benefits during 2024 is slightly different compared to 2023. And instead of recording the entire benefit under the tax line in the quarter that the storage project came online, we expect to reduce our tax rate proportionately throughout the year. We anticipate the receipt of approximately $145 million in cash proceeds related to the PTC and ITC benefit that will reduce our capital needs for 2024.

我們計劃記錄 2024 年 ITC 收益的方式與 2023 年略有不同。我們不會在儲存項目上線的季度將全部收益記錄在稅線下，而是預計全年按比例降低稅率。我們預計將收到與 PTC 和 ITC 福利相關的約 1.45 億美元現金收益，這將減少我們 2024 年的資本需求。

Looking at slide 10, our net debt as of December 31, 2023 was approximately $1.8 billion, equivalent to 3.7 times debt to EBITDA. Cash and cash equivalents and restricted cash and cash equivalents as of December 31, 2023 was approximately $288 million compared to $227 million at the end of 2022. Slide 10 breaks our cash for the 12th month illustrating our math ability to reinvest in the business and service our debt obligation while returning capital to our shareholders.

檢視投影片 10，截至 2023 年 12 月 31 日，我們的淨債務約為 18 億美元，相當於 EBITDA 債務的 3.7 倍。截至 2023 年 12 月 31 日，現金和現金等價物以及限制性現金和現金等價物約為 2.88 億美元，而 2022 年底為 2.27 億美元。投影片 10 打破了我們第 12 個月的現金狀況，說明了我們在向股東返還資本的同時對業務進行再投資和償還債務的數學能力。

Our total debt as of December 31, 2023 was approximately $2.1 billion net of deferred financing cost. Excluding the short term commercial paper we issued is presented on slide 33 in the appendix and outline the payment schedule. The average cost of our debt for the company stands at 4.3%. We think it is important to note that nearly all of our debt liabilities remain fixed rate in nature, which we believe will help continue to position Ormat competitively in the rising global interest rate environment.

截至 2023 年 12 月 31 日，我們的總債務扣除遞延融資成本後約為 21 億美元。附錄第 33 投影片中介紹了我們發行的短期商業票據，並概述了付款時間表。該公司的平均負債成本為 4.3%。我們認為值得注意的是，我們幾乎所有的債務本質上都是固定利率，我們相信這將有助於 Ormat 在全球利率上升的環境中繼續保持競爭力。

Let's move to slide 11. We have approximately $741 million of total liquidity. Our total expected capital for 2024 is approximately $550 million as detailed in slide 34 in the appendix. In 2024, we plan to invest approximately $340 million in electricity segment and construction, drilling and maintenance CapEx and $187 million in our storage assets.

讓我們轉到投影片 11。我們的流動資金總額約為 7.41 億美元。我們 2024 年的預期總資本約為 5.5 億美元，詳見附錄第 34 投影片。到 2024 年，我們計劃在電力部門以及建築、鑽井和維護資本支出上投資約 3.4 億美元，在儲存資產上投資 1.87 億美元。

Overall, Ormat is very well positioned execute our strategic growth plans from a capital research perspective, maintaining excellent liquidity and ample access to additional capital as well as cash we expect to receive from the IRA benefit. We expect that each project that reach commercial operation in the next few years in the US will be entitled to between 30% to 40% of funding supported by the new IRA benefit.

總體而言，Ormat 從資本研究的角度來看，非常有能力執行我們的策略成長計劃，保持良好的流動性，並有充足的機會獲得額外資本以及我們期望從 IRA 福利中獲得的現金。我們預計未來幾年在美國實現商業運營的每個項目都將有權獲得新 IRA 福利支持的 30% 至 40% 的資金。

On February 21, 2024, our Board of Directors declared, approved, and authorized payments of quarterly dividends of $0.12 per share to all holders of the company issued an outstanding shares common stock on March 6, 2024, payable on March 20, 2024. In addition, we expect to pay quarterly dividend of $0.12 per share in each of the next three quarters.

2024年2月21日，我們的董事會宣布、批准並授權向公司於2024年3月6日發行的已發行普通股的所有股東支付每股0.12美元的季度股息，並於2024年3月20日支付。此外，我們預計未來三個季度每季派發每股 0.12 美元的季度股息。

Finally, on January 4, 2024, Ormat completed the strategic acquisition of contracted operating geothermal and solar assets from Enel Green Power North America. Ormat paid $272 million for 100% of the equity interest in the portfolio assets. The overall transactions were funded with available cash in combination with new corporate loans in the amount of $200 million that were raised in January 2024.

最終，Ormat於2024年1月4日完成了對Enel Green Power North America合約營運地熱和太陽能資產的策略性收購。Ormat 支付 2.72 億美元購買了投資組合資產 100% 的股權。整個交易的資金來源為可用現金以及 2024 年 1 月籌集的 2 億美元新企業貸款。

The Enel Green Assets portfolio acquisition is expected to be immediately accretive to both revenue and EBITDA, and we intend to further improve the performance of the acquired portfolio through a series of operational enhancements and optimization initiatives.

Enel 綠色資產投資組合收購預計將立即增加營收和 EBITDA，我們打算透過一系列營運增強和優化措施進一步提高所收購投資組合的績效。

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

我的財務概覽到此結束。我現在想把電話轉給多倫，討論最近的一些進展。

Thank you, Assi. Turning to slide 13 for a deeper glimpse at our operating portfolio. Generation growth in our core electricity segment carried support from our multiple CODs we achiedved during 2023, most notably at North Valley in April.

謝謝你，阿西。請參閱投影片 13，更深入了解我們的營運投資組合。我們核心電力部門的發電量成長得益於我們在 2023 年實現的多個 COD 的支持，尤其是 4 月在北谷的實現。

Additionally, we brought operation back online at our Heber 1 facility, following the replacement of the equipment, allowing higher generating capacity. And we also completed an expansion to the Dixie Valley Plant that we undertook to maximize the value of our existing PPA.

此外，在更換設備後，我們恢復了 Heber 1 設施的運行，從而實現了更高的發電能力。我們也完成了迪克西谷工廠的擴建，旨在最大限度地提高現有購電協議的價值。

Our portfolio capacity also carried additional support from full year operations at CD4 and Tungsten Phase 2, which achieved their respective CODs over the course of 2022. This was partially offset by a reduction in capacity at our Puna facility due to operational issues related to the performance of the well field, which caused us to run the plant at lower capacity rates. The performance of Puna improved in the Q4 and is currently operating above 30 megawatts.

我們的產品組合產能也得到了 CD4 和 Tungsten Phase 2 全年營運的額外支持，這些專案在 2022 年實現了各自的 COD。由於與井場性能相關的營運問題，我們的普納工廠產能減少，導致我們以較低的產能率運行該工廠，部分抵消了這一影響。Puna 的性能在第四季度有所改善，目前運行功率超過 30 兆瓦。

Our current total generating capacity, including the Enel Asset we recently purchased, stands at 1,215 megawatts in the electricity segment compared to 1,070 megawatts in 2022. This marks a 13.6% increase versus prior year level, positioning us well to achieve our multiyear portfolio expansion target.

我們目前電力領域的總發電量（包括我們最近購買的 Enel 資產）為 1,215 兆瓦，而 2022 年為 1,070 兆瓦。這標誌著比去年水準成長了 13.6%，使我們能夠很好地實現我們的多年投資組合擴張目標。

Turning to slide 14. I will give more details on our operating footprint. We are back to normal operating at -- the operation at Puna have successfully increased generation above 30 megawatts, up from the low 20s we observed earlier in the year. We recently received an approval from the Hawaiian POC for new PPA of the facility and confirmation of the EIS.

轉到投影片 14。我將提供有關我們營運足跡的更多詳細資訊。我們已恢復正常運作 - 普納的營運已成功將發電量提高到 30 兆瓦以上，高於我們今年稍早觀察到的 20 兆瓦。我們最近收到了夏威夷 POC 對該設施新 PPA 的批准以及 EIS 的確認。

The new PPA expands the contracted capacity and carries a fixed energy rate that will remove the volatility of the current avoided cost structure. The PPA will be in effect following the completion of the power plant upgrade expected in 2026 and will carry an average rate per megawatt hour of approximately $1.27 to $137 per megawatt hour, assuming we sell 100% of the generated electricity.

新的購電協議擴大了合約容量，並實施固定能源費率，這將消除當前避免的成本結構的波動性。預計 2026 年發電廠升級完成後，購電協議將生效，假設我們出售 100% 的發電量，每兆瓦時的平均電價約為每兆瓦時 1.27 至 137 美元。

At our Olkaria power plant in Kenya, we're currently operating at the 125 megawatt level, up slightly from prior year. Our professional team continued to work to work to increase the capacity of Olkaria. And the drilling campaign we conducted in 2023 has shown successful results that are now being tested. We are optimizing the resource utilization and expect the connection of the new wells to support and improve future performance.

我們位於肯亞的奧爾卡里亞發電廠目前的運作功率為 125 兆瓦，比去年略有增加。我們的專業團隊持續致力於提高 Olkaria 的容量。我們在 2023 年進行的鑽探活動已經取得了成功，目前正在接受測試。我們正在優化資源利用，並期望新井的連接能夠支援並提高未來的績效。

In the Caribbean, we continue with the development of the Bouillante power plant at Guadeloupe and expect to finalize PPA negotiations shortly. At the end of 2023, we signed a new BOT PPA for a new 10 megawatt power plant we expect to build in Dominica near our Bouillante power plant in Guadeloupe. The proximity of these two power plants creates attractive operational synergies that will reduce manpower costs and strengthen the economic potential of the expected new power plants.

在加勒比海地區，我們繼續開發瓜德羅普島的 Bouillante 發電廠，並預計很快完成購電協議談判。2023 年底，我們為一座新的 10 兆瓦發電廠簽署了新的 BOT PPA，我們預計將在多明尼加靠近瓜德羅普島 Bouillante 發電廠的地方建造一座新發電廠。這兩個發電廠的鄰近位置創造了有吸引力的營運協同效應，將降低人力成本並增強預期新發電廠的經濟潛力。

And on the strategic front on slide 15, in October, we announced the acquisition of the contracted operating assets portfolio in the United States from Enel Green Power North America. This transaction closed January 2024. The asset portfolio including three geothermal facilities and three solar PV facilities carries consolidated capacity generation of roughly 100 megawatts with a three-year trading average annualized EBITDA contribution of $24 million. The portfolio also carried the opportunity to expand economics through a targeted series of growth investments, including operational optimization through the replacement of existing equipment with best in class internally manufactured equipment and the option to explore future greenfield projects in Utah and in California.

在幻燈片 15 的策略方面，10 月份，我們宣布從 Enel Green Power North America 收購美國的合約營運資產組合。該交易於 2024 年 1 月完成。該資產組合包括三個地熱設施和三個太陽能光電設施，綜合發電量約 100 兆瓦，三年交易平均年化 EBITDA 貢獻為 2,400 萬美元。該投資組合還提供了透過一系列有針對性的成長投資來擴大經濟效益的機會，包括透過用一流的內部製造設備替換現有設備來優化運營，以及選擇在猶他州和加利福尼亞州探索未來的綠地專案.

Turning to slide 16. Our product segment backlog stands at $152 million. This backlog carries roughly $157 million of contract mostly signed in 2023, including the recently signed $95 million geothermal contract for the Ngatamariki project in New Zealand. We see future potential coming from New Zealand, Indonesia and Latin America.

轉到投影片 16。我們的產品部門積壓訂單達 1.52 億美元。該積壓訂單中包含約 1.57 億美元的合同，大部分是在 2023 年簽署的，其中包括最近為新西蘭 Ngatamariki 項目簽署的 9500 萬美元的地熱合同。我們看到紐西蘭、印尼和拉丁美洲的未來潛力。

Moving to slide 17 for an update on our energy storage segment. The segment reported lower revenues and gross margin in the fourth quarter, due to lower year-over-year merchant rates, primarily in the PJM and Kaiser markets. We successfully filled these new projects to add 82 megawatts or 102 megawatt hour in total to our fleet, and we are currently in the final stages to commission the 20 megawatt hour East Flemington facility.

請前往投影片 17，以了解我們能源儲存領域的最新情況。該部門第四季的營收和毛利率較低，原因是商家費率較去年同期下降，主要是在 PJM 和 Kaiser 市場。我們成功完成了這些新項目，為我們的機隊總共增加了 82 兆瓦或 102 兆瓦時，目前我們正處於調試東弗萊明頓 20 兆瓦時設施的最後階段。

We also successfully secured a long-term tolling agreement for Pomona 2 facility. This agreement marks the third tolling agreement in our expanding portfolio following the 2022 Bottleneck contract and 2023 Arrowleaf Solar and Storage Facility. These three agreements contribute to the growth of a stable, profitable and predictable revenue stream for the energy storage segment, with over 40% of the segment's revenue expected to be contracted by the end of 2024.

我們也成功獲得了 Pomona 2 設施的長期收費協議。該協議是繼 2022 年瓶頸合約和 2023 年 Arrowleaf 太陽能和儲存設施之後我們不斷擴大的產品組合中的第三份收費協議。這三項協議有助於儲能領域穩定、獲利和可預測的收入來源的成長，預計到2024年底，該領域將有超過40%的收入將被收縮。

Please turn to slide 19, where we briefly discuss our growth plans. We continue to see an increase in the demand for geothermal energy and the successful and steady execution of our growth strategy has given us the confidence to reiterate our 2026 target that we provided in early 2022. With the success that we have achieved thus far in our growth efforts supported by the attractive organic and acquisitive growth captured in 2023, we are targeting between 2.1 to 2.3 gigawatts of portfolio capacity by year end 2026.

請參閱投影片 19，我們在其中簡要討論了我們的成長計畫。我們持續看到地熱能需求的增加，以及我們成長策略的成功和穩定執行，使我們有信心重申我們在 2022 年初提出的 2026 年目標。在 2023 年實現的有吸引力的有機成長和收購性成長的支持下，我們迄今為止在成長努力中取得了成功，我們的目標是到 2026 年底實現 2.1 至 2.3 吉瓦的投資組合容量。

Our critical target markets of California and Nevada recognize the critical role that geothermal resources play in supporting their respective energy grids, are on the forefront of developing and supplementing intermittent power generation with reliable and renewable high-capacity geothermal energy resources with zero emission. This support has helped sustain and expand the tailwinds for future PPAs. Additionally, it has created adjacent tailwinds for energy storage demand as added storage capacity will be necessary for the region to achieve their goals and further reduce greenhouse gas emissions to supply power to the grid.

我們的加州和內華達州的關鍵目標市場認識到地熱資源在支持各自能源網方面發揮的關鍵作用，處於利用可靠、可再生、零排放的大容量地熱能源開發和補充間歇性發電的最前沿。這種支持有助於維持和擴大未來購電協議的動力。此外，它還為能源儲存需求創造了相鄰的順風車，因為該地區需要增加儲存容量來實現其目標並進一步減少溫室氣體排放以向電網供電。

As we have discussed previously, the Inflation Reduction Act, which was signed on August 16, 2022 has had a significant positive impact on our ability to develop geothermal and storage asset in the US. At higher economics due to lower capital needs, we plan to continue seeking the PTC benefit for our new geothermal power plant and plan to enter into further tax equity transaction, which can fund over 40% of our capital needs for new geothermal plants in the US.

正如我們之前討論的，2022 年 8 月 16 日簽署的《通貨膨脹削減法案》對我們在美國開發地熱和儲存資產的能力產生了重大的正面影響。由於資本需求較低，經濟效益較高，我們計劃繼續為我們的新地熱發電廠尋求 PTC 收益，併計劃進行進一步的稅收股權交易，這可以滿足我們在美國新建地熱發電廠 40% 以上的資本需求。

Moving to slide 20. We are on track with our long-term target as communicated back in 2022 in our Analyst Day. We expect to increase our total electricity portfolio generation to between 1450 and 1470 megawatts by the end of 2026. In energy storage, we remain on track with our growth plans, and we expect to reach between 700 to 800 megawatts or 1.9 to 2.3 gigawatt hour by year end 2026, marking a more than fivefold expansion from prior capacity levels.

轉到投影片 20。我們正朝著 2022 年分析師日傳達的長期目標邁進。我們預計到 2026 年底將我們的總發電量增加到 1450 至 1470 兆瓦。在能源儲存方面，我們仍按計劃實施成長計劃，預計到 2026 年底，容量將達到 700 至 800 兆瓦或 1.9 至 2.3 吉瓦時，比之前的容量水準擴大五倍以上。

Slides 21 and 22 showcase the geothermal and the hybrid solar PV project currently underway. We are on track with our Beowawe repowering project, which we expect to be complete in the second half of 20224. Later towards the end of 2024, we expect to achieve the commercial commissioning for the Ijen plant in Indonesia, which will add another 15 megawatts of capacity to our growing portfolio.

幻燈片 21 和 22 展示了目前正在進行的地熱和混合太陽能光電專案。我們的 Beowawe 重新供電項目正在按計劃進行，預計將於 20224 年下半年完成。到 2024 年底，我們預計印尼 Ijen 工廠將實現商業調試，這將為我們不斷增長的產品組合再增加 15 兆瓦的產能。

In 2025, we expect to add 20 megawatts in operations in the Caribbean area and one large power plant in New Zealand. In addition, we are planning to upgrade our recently acquired assets and add approximately 17 megawatts between the end of 2025 and 2026. Puna, North Valley, and new prospects that will have successful exploration are expected to be operational by end of 2026.

到 2025 年，我們預計將在加勒比地區增加 20 兆瓦的營運容量，並在新西蘭增加一座大型發電廠。此外，我們還計劃升級最近收購的資產，並在 2025 年底至 2026 年間增加約 17 兆瓦。普納 (Puna)、北谷 (North Valley) 以及將成功勘探的新勘探區預計將於 2026 年底投入營運。

Our project development underway in our solar PV portfolio are weighted towards the first half of the year, as we expect to commission the Steamboat Hills solar by the end of Q1 and North Valley and Beowawe by end of Q2.

我們的太陽能光電投資組合中正在進行的專案開發主要集中在今年上半年，因為我們預計在第一季末投產 Steamboat Hills 太陽能，並在第二季末投產 North Valley 和 Beowawe。

Moving to slide 24. The third layer of our growth plan focuses on the growth and development of our energy storage assets. We currently have seven projects under development that will add 355 megawatts or 1,060 megawatt hour to our storage portfolio by the end of 2025. We are currently in the latest stage of COD in our 20 megawatt East Flemington storage facility in New Jersey. Also, we released for construction the Shield 80 megawatt, 320 megawatt hour storage facility in California that is expected to be online in the second half of 2025.

轉到投影片 24。我們成長計畫的第三層重點是我們的儲能資產的成長和發展。我們目前有七個專案正在開發中，到 2025 年底，我們的儲存組合將增加 355 兆瓦或 1,060 兆瓦時。目前，我們位於新澤西州的 20 兆瓦東弗萊明頓儲存設施正處於 COD 的最新階段。此外，我們也宣佈在加州建造 Shield 80 兆瓦、320 兆瓦時儲存設施，預計將於 2025 年下半年上線。

Our pipeline in energy storage as displayed on slide 25 shows our overall potential future capacity at 3.6 gigawatt or 13.1 gigawatt hour. Geographically, we continue to focus our efforts largely in the core target market of the United States, where we have the ability to benefit from the increased demand for energy storage capabilities.

我們的儲能管道如投影片 25 所示，顯示我們未來的整體潛在容量為 3.6 吉瓦或 13.1 吉瓦時。從地理來看，我們繼續將主要精力集中在美國的核心目標市場，我們有能力從儲能能力需求的增加中受益。

Please turn to slide 26 for a discussion of our 2024 guidance. We expect total revenues to increase by 7% year over year at the midpoint and to be between $860 million and $910 million with electricity segment revenues between $710 million and $730 million an increase of 8% compared to 2023 results. We expect between $115 million and $135 million in the product segment, and energy storage revenues are expected to be between $35 million and $45 million. We expect adjusted EBITDA to increase by approximately 10% at the midpoint to range between $515 million and $545 million. We expect annual adjusted EBITDA attributable to minority interest to be approximately $18 million.

請參閱投影片 26 以討論我們的 2024 年指引。我們預計總營收將年增 7%，達到 8.6 億至 9.1 億美元之間，其中電力部門營收在 7.1 億至 7.3 億美元之間，與 2023 年業績相比成長 8%。我們預計該產品領域的營收將在 1.15 億美元至 1.35 億美元之間，儲能收入預計將在 3,500 萬美元至 4,500 萬美元之間。我們預計調整後的 EBITDA 中位數將成長約 10%，達到 5.15 億美元至 5.45 億美元之間。我們預計歸屬於少數股東權益的年度調整後 EBITDA 約為 1800 萬美元。

I will end our prepared remarks on slide 27. This was a strong quarter that capped off a very strong year format. We are confident that our attractive and differentiated portfolio of power generating assets, our unique growth strategy and our demonstrated ability to develop attractive geothermal, solar PV and energy storage projects with attractive long term PPAs position Ormat for successful and will drive significant shareholder value as we progress across 2024.

我將在投影片 27 上結束我們準備好的發言。這是一個強勁的季度，為非常強勁的年度格局畫上了圓滿的句號。我們相信，我們有吸引力且差異化的發電資產組合、我們獨特的成長策略以及我們透過有吸引力的長期購電協議開發有吸引力的地熱、太陽能光伏和儲能專案的能力，使Ormat 能夠取得成功，並將推動顯著的股東價值，因為我們2024 年的進展。

Before I open the call for questions, I'm happy to tell you that we will have our next Investor Day in New York City on June 20, 2024.

在開始提問之前，我很高興地告訴您，我們將於 2024 年 6 月 20 日在紐約舉行下一個投資者日。

This concludes our prepared remarks. Now I would like to open the call for questions. Operator, please.

我們準備好的演講到此結束。現在我想開始提問。接線員，請說。

(Operator Instructions) Justin Clare, Roth MKM.

（操作員說明）Justin Clare，Roth MKM。

Hi. Thanks for taking our questions. So first off here, I might have missed it, but did you share the expectations for electricity gross margins in 2024? If not, would you mind providing the expectations there?

你好。感謝您回答我們的問題。首先，我可能錯過了，但您對 2024 年電力毛利率的預期有什麼看法嗎？如果沒有，您介意在那裡提供期望嗎？

And then just wondering if we compare the gross margin in 2024 to 2023, what are the key elements that we should be thinking about that are influencing the change? So there's Puna operating at a higher level of capacity. There's also the acquisition of Enel assets. But what are the other factors that we should be thinking about?

然後想知道如果我們比較 2024 年和 2023 年的毛利率，我們應該考慮影響這項變化的關鍵因素是什麼？因此，普納的運力水準較高。還有對Enel資產的收購。但我們還應該考慮哪些因素呢？

Good morning. So when we look at the 2023, our electricity -- and I'm going to talk on the full year. For the full year, the gross margin was roughly 36.6%.

早安.因此，當我們展望 2023 年時，我們的電力——我將談論全年。全年毛利率約36.6%。

When we look at 2024, we expect a slight uptick by 1% or 2% in the gross margin. It's coming basically from three elements. One, as you rightfully said, the Puna is operating at a much higher capacity for the full year expected 2024 versus 2023. Second, in Olkaria, we had a very successful drilling campaign that we expect in the second half of the year to impact us very positively. And third is the assets of Enel that also contributing high relatively gross margin.

展望 2024 年，我們預期毛利率將小幅上升 1% 或 2%。它基本上來自三個要素。第一，正如您所說，普納預計 2024 年全年的營運能力比 2023 年高得多。其次，在奧爾卡里亞，我們進行了一次非常成功的鑽探活動，我們預計這將在今年下半年對我們產生非常積極的影響。第三是Enel的資產，也貢獻了相對較高的毛利率。

Okay. Got it. That's helpful. And then you reiterated the 2026 capacity target here, 2.1 to 2.3 gigawatts. I was wondering if you are still anticipating to meet the interim target for 2025. So you had talked about 1.9 to 2 gigawatts potentially by the end of 2025, are you on track there?

好的。知道了。這很有幫助。然後您在這裡重申了 2026 年的容量目標，2.1 至 2.3 吉瓦。我想知道您是否仍然期望實現 2025 年的中期目標。所以您曾談到 2025 年底可能會達到 1.9 至 2 吉瓦，您是否步入正軌？

It looks like you do have the assets in geothermal and solar to achieve that target storage. It seems like some assets may be needed to be added to the pipeline still. So how are you thinking about that?

看來您確實擁有地熱和太陽能資產來實現該目標儲存。似乎仍然需要將一些資產添加到管道中。那麼你對此有何看法？

Yes. We are expecting to reach the target for the end of '25. As you said, when you look at the list of projects that we released including the Shield project that we released this week, we are very close to have all of the detail all the projects that would get us there. There's still some project on the energy storage that we'll need to release, and we are working to release them getting the final permits. And so we do expect to be in line with these targets.

是的。我們預計在 25 年底達到目標。正如您所說，當您查看我們發布的項目清單（包括本週發布的 Shield 項目）時，您會發現我們非常接近掌握實現這一目標的所有項目的所有詳細資訊。我們仍然需要發布一些關於儲能的項目，我們正在努力獲得最終許可來發布它們。因此，我們確實希望能夠實現這些目標。

Okay, got it. And then maybe just one more, it looks like your prospects that you're exploring here increased a decent amount quarter over quarter. I think you have 42 now versus 33 last quarter. I was wondering if you could just expand on what drove the increase there and what opportunities you're pursuing?

好，知道了。也許還有一個，看起來您在這裡探索的潛在客戶逐季增加了相當多的數量。我認為現在有 42 個，而上個季度有 33 個。我想知道您是否可以詳細說明推動成長的因素以及您正在尋求哪些機會？

The prospects in the US -- I guess that's what you are referring to -- increased mainly due to the acquisition of Enel that brought in new targets, new Greenfields in Utah and in California. And it's an ongoing process that we continuously look at opportunities. Whenever we have a chance, we buy new lands to the BLM issue. But I think the main difference is the acquisition of Enel and the potential prospect they brought in.

美國的前景——我想這就是你所指的——的成長主要是由於收購了Enel，帶來了新的目標，以及猶他州和加州的新綠地。這是一個持續的過程，我們不斷尋找機會。只要有機會，我們就會買新土地發行 BLM。但我認為主要的差異在於對Enel的收購以及他們帶來的潛在前景。

Got it. Okay. Thank you.

知道了。好的。謝謝。

Thank you.

謝謝。

Ryan Levine, Citi.

瑞安‧萊文，花旗銀行。

Good morning. Hoping to start off on New Mexico. I noticed you have one development project there, that recent legislation that came into -- that got passed last week. What's your outlook for development in that state? And is there more meaningful commercial opportunities that you're seeing emerge in New Mexico?

早安.希望從新墨西哥州開始。我注意到你們那裡有一個開發項目，最近通過的立法 - 上週獲得通過。您對該州的發展前景有何看法？您是否看到新墨西哥州出現了更有意義的商業機會？

Yeah, so we have Rincon in New Mexico as a potential greenfield, which we actually like. I can tell you that until the last legislation and few weeks ago, we didn't see strong regulatory support in New Mexico. But with this new change, we are looking at it. We know that there are power plants over there operating. I can tell you that we are also looking on the energy storage market in New Mexico. So this is definitely a place that we are looking into.

是的，所以我們在新墨西哥州有 Rincon 作為潛在的綠地，我們實際上很喜歡。我可以告訴你，直到最後一項立法和幾週前，我們在新墨西哥州還沒有看到強有力的監管支持。但對於這一新的變化，我們正在關注它。我們知道那裡有發電廠正在運作。我可以告訴你，我們也在關注新墨西哥州的儲能市場。所以這絕對是我們正在研究的一個地方。

Okay. Maybe shifting region of the world, in terms of Kenya, can you give us an update around the cash payments you may have received this quarter as the case night out? And how the state of commercial negotiations or the state of those projects are progressing?

好的。也許世界上的地區正在發生變化，就肯亞而言，您能否向我們介紹您本季可能收到的現金付款的最新情況？商業談判或這些項目的進度如何？

As I mentioned in the last call, Kenya AR last year was rising not because of KPLC inability to pay, but because of lack of the US dollars in the country. Because of a very good day weather in the second half of 2023, that positively impacts the agriculture export.

正如我在上次電話會議中提到的，去年肯亞 AR 的上漲並不是因為 KPLC 無力支付，而是因為該國缺乏美元。由於 2023 年下半年天氣非常好，這對農產品出口產生了積極影響。

In addition to the fact that the Kenyan government was able to issue EUR2 billion of new debt bond a few weeks ago, I'm happy to say that in the first 40 -- 50 days of 2024, we already collected over $32 million. So out of the $80 million that was owed to us by end of 2024 -- end of 2023, $32 million was already collected, and there was a very good outlook to continue with the strong collection.

除了幾週前肯亞政府能夠發行 20 億歐元的新債務債券之外，我很高興地說，在 2024 年的前 40 到 50 天內，我們已經籌集了超過 3,200 萬美元。因此，到 2024 年底（即 2023 年底）欠我們的 8000 萬美元中，已經收回了 3200 萬美元，而且繼續強勁收回的前景非常好。

So I will say that so far for the year, a very good outcome to our cash and benefiting us tremendously. If you look at the cash flow last year, we were suffering the almost $60 million increase in the receivable. I hope that this year we'll see the opposite and therefore the operating cash flow will be much stronger.

所以我想說，今年到目前為止，我們的現金取得了非常好的成果，並使我們受益匪淺。如果你看看去年的現金流，你會發現我們的應收帳款增加了近 6,000 萬美元。我希望今年我們會看到相反的情況，因此經營現金流將會更加強勁。

As of the negotiation, as you know and everybody knows that in every negotiation there is it needs to be a win-win situation. We have a valid contract with PPA until 2034. We are always happy to negotiate new terms on a win-win base. I can't say that there was any change in the prospects of getting into a new term because mainly of the fact that almost electricity is needed and it's already priced probably the most cheapest electricity in Kenya other than Kenjin.

至於談判，眾所周知，每個人都知道，每次談判都需要雙贏。我們與 PPA 簽訂的合約有效期至 2034 年。我們總是樂於在雙贏的基礎上談判新條款。我不能說進入新學期的前景有任何變化，因為主要是因為幾乎需要電力，而且它的定價可能是肯亞除 Kenjin 之外最便宜的電力。

So I don't anticipate any major changes in the contract going forward and if there will be one, we will announce it to the market. But as you said at the beginning, they need electricity, and they are paying for it and we expect 2024 at least from as of today to have a very strong collection in Kenya.

因此，我預計未來合約不會發生任何重大變化，如果有的話，我們將向市場宣布。但正如您一開始所說，他們需要電力，而且他們正在為此付費，我們預計至少從今天開始，2024 年肯亞將擁有非常強大的電力收集。

Okay. And then on the storage segment, I appreciate all the disclosure around your fixed versus merchant risk or revenue mix. Is there any key hubs that may have caused the margin pressure in this recent quarter? And how are you seeing the outlook for storage margin going forward? And to the extent there's any resource adequacy or any other payments that are relevant for that margin outlook that we should keep in mind?

好的。然後在儲存領域，我感謝所有有關固定風險與商家風險或收入組合的揭露。是否有任何關鍵樞紐可能導致最近一個季度的利潤率壓力？您如何看待未來儲存利潤的前景？我們應該牢記與利潤前景相關的任何資源充足性或任何其他付款嗎？

I would say 2023 was relatively low merchant pricing across all markets that we operate in and that's why you saw lower margins in the energy storage. Part of the balancing of the risks that we're doing is signing tolling agreements or PPA agreements. We signed we have Pomona 2, we signed with Bottleneck that will come online this year.

我想說，2023 年我們經營的所有市場的商業定價相對較低，這就是為什麼能源儲存的利潤率較低。我們正在做的風險平衡的一部分是簽署收費協議或購電協議。我們簽署了 Pomona 2，我們簽署了將於今年上線的 Bottleneck。

And as I said before, we expect at the end of the year to be around 40% contracted. And then next year we have additional contracts coming with PPA. Then we are negotiating additional contracts with PPA. So all in all, there's going to be a balance.

正如我之前所說，我們預計到今年年底合約將減少 40% 左右。明年我們也會與購電協議簽訂更多合約。然後我們正在與 PPA 談判額外的合約。所以總而言之，將會有一個平衡。

So we will not see this high volatility that we see today. However, we definitely do not want all storage assets to be contracted because we do believe that we can get benefits from this volatility. We just want to have it better aligned. And on margins, so we expect in 2024 around 10% to 15% gross margins and the second half of 2024 to be even higher at around 15% to 20% once Bottleneck into operation.

因此，我們不會看到今天這樣的高波動性。然而，我們絕對不希望所有儲存資產都被收縮，因為我們確實相信我們可以從這種波動中獲益。我們只是想讓它更好地對齊。在利潤率方面，我們預計 2024 年毛利率將達到 10% 至 15% 左右，一旦瓶頸投入運行，2024 年下半年毛利率將更高，達到 15% 至 20% 左右。

Great. Thanks for taking my questions.

偉大的。感謝您回答我的問題。

Julien Dumoulin-Smith, Bank of America.

朱利安·杜穆蘭-史密斯，美國銀行。

Hey, good morning, can you hear me?

嘿，早上好，你聽得到我說話嗎？

Yes, Julien.

是的，朱利安。

It's good. Thank you very much, guys. I hope you guys are well. Look, thank you.

很好。非常感謝你們。我希望你們一切都好。看看，謝謝。

First off, if I can, just can we talk a little about the storage segment? Just what exactly is going on vis-a-vis just the latest revenue guidance? Obviously, a little bit more flattish last year off of a robust '22. But how are you thinking about the cadence of that business over time here?

首先，如果可以的話，我們可以談談儲存領域嗎？與最新的收入指引相比，到底發生了什麼事？顯然，去年的 22 年表現更加平淡。但您如何看待該業務隨著時間的推移在這裡的節奏？

You've had a couple of flattish years, you've been putting more capital into it, obviously, more profitable in the earlier years. But just a little bit more color on just why it still in the same ballpark here if you will and the negative margins in the quarter.

你經歷了幾年平淡的日子，你投入了更多的資金，顯然，前幾年的利潤更高。但如果你願意的話，請多解釋為什麼它仍然處於相同的水平，以及本季的負利潤率。

I think on the negative margins of the quarter as we said relates mainly to the merchant pricing and the fact that most of the fleet is merchant. What was going to change once a Pomona tolling agreement kicked in and Bottlenecked the second half of the year. We finished 2023 with around $29 million. The guidance that we gave is $35 million to $45 million which is close to 40% increase year over year. What we see in the storage market is that as we bring online more projects and we sign more contracted asset, pricing goes up.

我認為，正如我們所說，本季的負利潤率主要與商家定價以及大多數船隊都是商家有關。一旦波莫納通行費協議生效並在今年下半年出現瓶頸，情況將會改變。2023 年我們的收入約為 2900 萬美元。我們給的指導價為 3,500 萬至 4,500 萬美元，較去年同期成長近 40%。我們在儲存市場看到的是，隨著我們上線更多項目並簽署更多合約資產，價格就會上漲。

Actually, if you will go and annualize 2023 and 2024 to see how they would look if the of all the assets that come online would was operated for the full year. You will probably see over 50% interest year over year. So we actually are starting to benefit from the growth that we see in the storage. When you see the plan that we have to grow the storage to over -- to 700 to 800 megawatts at the end of 2026, it is a significant growth, and we expect this segment to continue and grow significantly as we continue to release large projects during the year. And as I said on the margins, we expect 24% to be 10% to 15% with the second half after Bottleneck coming into operations around 15% to 20%.

實際上，如果您將 2023 年和 2024 年進行年度化，看看如果所有上線資產全年運行，它們會是什麼樣子。您可能會看到年復一年超過 50% 的利息。因此，我們實際上開始從儲存的成長中受益。當您看到我們必須在2026 年底將儲存容量增加到700 至800 兆瓦以上的計劃時，這是一個顯著的增長，我們預計隨著我們繼續發布大型項目，這一領域將繼續並顯著增長年內。正如我在邊緣所說的那樣，我們預計 24% 到 10% 到 15%，下半年瓶頸投入營運後約為 15% 到 20%。

Got it. Excellent. And then just vis a vis the longer term here. Obviously, we're talking here about storage growth, but overall, you guys have this Analyst Day coming up. How many years forward do you expect to provide here?

知道了。出色的。然後是針對更長期的情況。顯然，我們在這裡討論的是儲存成長，但總的來說，分析師日即將到來。您預計在這裡提供多少年的服務？

And then the interim here, just as you think about these targets that you had, how are you thinking about achieving the 2025, 2026 financial metrics that you articulated? I get that maybe you're now going to pivot to something that might have a little bit more of a longer dated view to it by midyear.

然後，在您考慮這些目標時，您如何考慮實現您闡明的 2025 年、2026 年財務指標？我知道你現在可能會轉向一些在年中之前可能有更長遠觀點的事情。

Look, what we've said now is that the target that we've set in 2022, the growth targets, we are reiterating the growth target, and we expect to be in line with the growth targets. As we come to the Analyst Day in June, we will obviously come with a longer-term target.

你看，我們現在所說的是，我們在2022年設定的目標，成長目標，我們正在重申成長目標，我們期望與成長目標保持一致。當我們來到六月的分析師日時，我們顯然會制定一個長期目標。

I can't tell you exactly how many years down the road. But in all the previous Analyst Days, we give longer term targets so you will know where the company is going. I think, today, we gave out the target for the end of 2026, again, 2.1 to 2.3 gigawatt of operating assets which is a very nice growth target.

我無法準確告訴你未來還有多少年。但在之前的所有分析師日中，我們都會給出長期目標，這樣您就會知道公司的發展方向。我認為，今天我們再次給出了 2026 年底營運資產 2.1 至 2.3 吉瓦的目標，這是一個非常好的成長目標。

(Operator Instructions) Derek Podhaizer, Barclays.

（操作員指令）Derek Podhaizer，巴克萊銀行。

Hey, good morning. I just wanted to go back to the 2024 guide. You guys talked about, gross margin expansion on electricity, products, and storage. But can you just clarify as far as how much EBITDA support you expect out of the PTCs? Just trying to triangulate the guide and the different puts and takes there. So do you expand on what brings you -- we got the revenue guide, but what brings you on the margin front and then the PTCs would be helpful.

嗨，早安。我只是想回到 2024 年指南。你們談到了電力、產品和儲存的毛利率擴張。但您能否澄清一下您期望 PTC 提供多少 EBITDA 支援？只是試圖對指南以及那裡的不同放置和取出進行三角測量。那麼，您是否會詳細說明是什麼給您帶來了 - 我們有收入指南，但是什麼給您帶來了利潤，然後 PTC 會有所幫助。

Good morning, Derek. As I mentioned on the call, we expect PTC to be down roughly $5 million to $10 million year over year because of the elimination of one of our facilities that we enter into 10 years ago when it's basically ended. It's the [opalette] tax equity transaction. This will be offset -- the $5 million to $10 million is the net number. We will plan to enter into new tax equity transaction in Heber and in Beowawe. But the net number, this year, we had $62 million, next year, we expect $5 million to $10 million less.

早上好，德瑞克。正如我在電話會議上提到的，我們預計 PTC 將同比減少約 500 萬至 1000 萬美元，因為我們取消了 10 年前進入的一項設施，當時該設施已基本結束。這是[opalette]稅收股權交易。這將被抵消——500萬至1000萬美元是淨額。我們將計劃在 Heber 和 Beowawe 進行新的稅務股權交易。但淨數字是，今年我們有 6,200 萬美元，明年我們預計會減少 500 萬至 1,000 萬美元。

Got it. That's very helpful. Thank you.

知道了。這非常有幫助。謝謝。

I wanted to ask about the 12 megawatt reduction as you guys put in your deck. I mean, can you help explain that to us what's driving that. How should we think about that for all your other projects just going forward?

我想問一下你們在甲板上減少 12 兆瓦的電力。我的意思是，你能幫我們解釋一下是什麼推動了這一點嗎？對於您即將進行的所有其他項目，我們應該如何考慮這一點？

And then just curious as far as what the call on the balance sheet capacity could be as potentially having a re-equitize or just some thoughts around that as far as what it means for covenants. Yeah, just everything with the covenants and the reductions and how we should think about it as far as the call on the balance sheet.

然後只是好奇資產負債表容量的變化可能會導致重新股權化，或者只是對此有一些想法，這對契約意味著什麼。是的，只是關於契約和削減的所有事情，以及我們應該如何考慮資產負債表上的要求。

Let's start with the balance sheet. The balance sheet is very strong. Debt to EBITDA at year end was at 3.7 times metrics. Our covenants are sometimes around 6 to 7 times debt to EBITDA. So for us to be even close to it, our EBITDA should be half, or we should borrow additional $2 billion with no additional EBITDA.

讓我們從資產負債表開始。資產負債表非常強勁。年末 EBITDA 負債為指標的 3.7 倍。我們的契約有時約為 EBITDA 債務的 6 至 7 倍。因此，為了讓我們更接近這個目標，我們的 EBITDA 應該是一半，或者我們應該額外借入 20 億美元，但沒有額外的 EBITDA。

From a liquidity perspective, as we said, we have over $700 million of liquidity. And we did not impact the liquidity by the Enel transaction because we borrowed additional $200 million to fund it. So on the balance sheet side, I think Ormat is one of the strongest companies in the industry, with probably the lowest leverage in the industry.

從流動性角度來看，正如我們所說，我們擁有超過 7 億美元的流動性。Enel 交易並沒有影響我們的流動性，因為我們額外借了 2 億美元來為其提供資金。因此，在資產負債表方面，我認為 Ormat 是業內最強大的公司之一，槓桿率可能是業內最低的。

If you look at our peers, our peers have mainly leveraged 5 to 6 times. And therefore, we don't anticipate at this point any equity requirement. We raised the equity in 2023, anticipating a strong M&A market knowing what we see in front of us. And we were actually right and timed very well the transaction of the equity versus the transaction of the offering.

如果你看我們的同行，我們同行的槓桿主要是5到6倍。因此，我們目前預計不會有任何股權要求。我們在 2023 年籌集了股權，預計併購市場將會強勁，因為我們知道我們所看到的情況。事實上，我們在股權交易與發行交易方面的選擇是正確的，時機也非常好。

Can you repeat the question on the 12 megawatts? Which page are you looking at? Just for me to follow so I can answer your question.

您能重複一下關於 12 兆瓦的問題嗎？您正在查看哪個頁面？只是為了讓我跟隨，以便我可以回答你的問題。

Yeah. And I appreciate all those comments. The slide number 13, just the 12 megawatt reduction. Just how to think about that, what's driving that, and how should we think about that for the rest of the portfolio?

是的。我感謝所有這些評論。第 13 張投影片，僅減少了 12 兆瓦。只是如何思考這一點，是什麼推動了這一點，以及我們應該如何思考投資組合的其餘部分？

So every time, every quarter, every year, we balanced all the power plants. Some power plants have maybe more cooling than what's anticipated, and that's how we adjust the portfolio. I don't think there was any one project that was big, but it was a mega here and a mega there.

因此，每次、每季、每年，我們都會平衡所有發電廠。一些發電廠的冷卻效果可能比預期的要好，這就是我們調整產品組合的方式。我不認為有任何一個項目是大的，但這裡是一個大型項目，那裡也是一個大型項目。

Got it. Okay. That's helpful. And then just one more question for me. Can you just talk about the capacity factor trend? I mean, you're bringing on more solar, which should be diluted to the geothermal assets, but how should we think about your capacity factor over the next few years and all the puts and takes around that?

知道了。好的。這很有幫助。然後還有一個問題想問我。能簡單談談容量因素趨勢嗎？我的意思是，你正在引入更多的太陽能，這應該被稀釋到地熱資產中，但我們應該如何考慮你未來幾年的容量因素以及圍繞它的所有看跌期權和拿走期權？

I think that the fact that we are bringing more and more new facilities should over time increase the capacity factor. Also, you know we have in Puna and Kenya assets that were not performing well over the last few years. We expect them to perform much better over the next year or two or starting even already in Puna. So we should see a slight uptick.

我認為，隨著時間的推移，我們帶來越來越多的新設施，容量係數應該會增加。此外，您知道我們在普納和肯亞的資產在過去幾年中表現不佳。我們預計他們在未來一兩年或甚至已經在普納開始表現得更好。因此，我們應該會看到略有上升。

You are right. Actually, solar is not as dilutive as you think because it produce -- we are producing more electricity from the power plant. But you're right, the capacity factor of the solar is lower. But please remember that on our solar, the effective price that we are getting is actually geothermal price. So maybe it's dilutive to the capacity factor, but it's very accretive to the earnings.

你是對的。事實上，太陽能並不像你想像的那麼稀釋，因為它產生——我們正在從發電廠生產更多的電力。但你是對的，太陽能的容量係數較低。但請記住，在我們的太陽能上，我們得到的有效價格實際上是地熱價格。因此，也許它會稀釋產能係數，但它會非常增加收益。

Got it. Great. I appreciate the comments.

知道了。偉大的。我很欣賞這些評論。

We have no further questions at this time. I'll hand the call back to Doron Blachar for closing remarks.

目前我們沒有進一步的問題。我會將電話轉回多倫·布拉查 (Doron Blachar) 作結束語。

Hi. Thank you. 2023 was a very good year, and we expect 2024 to be even a better year. Omart is committed to a growth as we demonstrated in 2023 with the new project we released and the Enel acquisition. And we are continuing to grow the company with the target that we have set.

你好。謝謝。 2023 年是非常好的一年，我們預期 2024 年會更美好。正如我們在 2023 年發布的新項目和收購 Enel 所展示的那樣，Omart 致力於實現成長。我們將繼續按照我們設定的目標發展公司。

I want to thank all of you for your support and looking forward to see you in June. Thank you.

我要感謝大家的支持，並期待在六月見到你們。謝謝。

That does conclude today's call. Thank you all for joining. You may now disconnect.

今天的電話會議到此結束。感謝大家的加入。您現在可以斷開連線。