Ormat Technologies, Inc.

Good morning, everyone, and welcome to the ORMET Technologies fourth quarter and full year 2022 earnings conference call. All participants will be in a listen-only mode. After today's presentation, there will be an opportunity to ask questions. If you would like to ask a question during this time, simply press star 1 on your telephone keypad. If you would like to withdraw your question, press star 1 again. And please note that this event is being recorded. I would now like to turn the conference over to Mr. Sam Cohen with Alpha IR. Please go ahead, sir.

Thank you, operator. Hosting the call today are Daron Bouchard, Chief Executive Officer, Asi Ginzburg, Chief Financial Officer, and Smadar Lavie, Vice President of Investor Relations and ESG Planning and Reporting. Before beginning, we would like to remind you that the information provided during this call may contain forward-looking statements relating to 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. Actual future results may differ materially from those projected as a result of certain risks and uncertainties. For discussion of such risks and uncertainties, please see risk factors as described in ORMET Technologies annual report on Form 10-K and quarterly reports on Form 10-Q that are filed with the SEC. In addition, during the call, the company will present non-GAAP financial measures, such as adjusted EBITDA. Reconciliation 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. Before I turn the call over to management, I would 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. With all that said, I would now like to turn the call over to Duran Blashar. Duran, the call is yours.

Thank you, Sam, and good morning, everyone. Thank you for joining us today. The fourth quarter marked a strong finish to 2022 with 10.7% top-line expansion, reflecting growth across all our operating segments. 2022 was a year in which we executed successfully our strategic plans by expanding our portfolio and improving our operational performance. During 2022, we added 78 megawatts of new generating capacity to our electricity segment operating portfolio, including our CD4 and tungsten phase II geothermal power plants, as well as our Worcester solar, and two hybrid solar projects. In addition, we added a 5 megawatt new storage facility operating in the Kaizen. Also in 2022, we signed long-term power purchase agreements, PPAs, for up to 365 megawatts, with 285 megawatts of those PPA covering geothermal facilities and 80 megawatts for energy storage. These new agreements are expected to improve our economics in both segments. In our product segment, we experienced a significant recovery, delivering the highest quarterly revenue since the start of the COVID-19 pandemic. We now have a $148.1 million backlog, demonstrating the growing global demand for our geothermal products. As we look toward 2023, we expect to benefit from our portfolio expansion strategy, which has resulted in new geothermal and solar power plants in our electricity segment that started operation in the second half of 2022. We also expect to bring 170 megawatts of new capacity online, of which 66 megawatts is in the electricity segment and 104 megawatts are in the storage segment. For 2023, we expect to deliver between $480 million to $510 million of adjusted EBITDA. an increase of approximately 14% at the midpoint over 2022 actual results, which is the highest growth we have seen in years in EBITDA. This growth is supported by the new capacity added during 2022 and the expected capacity we plan to add in 2023. On an annualized basis, the new assets that will be added in 2023 as well as the potential improvements in Pune and Olkaria, are expected to add between $25 to $30 million of additional adjusted EBITDA versus 2022 partial operations. We continue to see strong tailwinds globally for renewable energy, supported by the Inflation Reduction Act benefits, including the PTC for geothermal and ITC for storage. We expect these benefits will reduce our capital needs and boost our EPS in the coming years. In addition, we are experiencing significant demand growth for geothermal energy and storage, driven by the volatile fossil fuel prices and global decarbonization efforts. We remain on track with our capacity expansion plans in both the electricity and the storage segments, with the potential to add approximately 700 megawatts by the end of 2025 which supports further top line EBITDA and net income expansion. Now, before I provide further updates on our operations and plans, I will turn the call over to Asi to review the financial results. Asi?