First quarter dip for Ormat leads to analyst downgrade

In Nevada, decreases in both product segment sales as well as gross margins across the board resulted in a big first quarter net income drop for Ormat Technologies. For the three months ended March 31, 2010, net income was $1.8 million compared to $14.5 million a year ago. Total revenues were $82.7 million, compared to $99.3 million in the first quarter of 2009. Aside from product segment decreases, Ormat also cited lower revenues from Puna and lower revenues and high operating costs from North Brawley. The company said that repair work in Puna will improve revenues in the second quarter, while generation ramp up in North Brawley will occur towards the end of the year. Citi, meanwhile, downgraded Ormat from hold to sell and lowered its price target from $36 to $22.