Ormat Technologies, Inc.

Good morning and welcome to the ORMAT Technologies fourth quarter and full year 2023 earnings conference call. All participants will be in listen-only mode. After today's presentation, there will be an opportunity to ask questions. To ask a question, simply press star then the number one on your telephone keypad. If you would like to withdraw your question, press star one again. Please note that this event is being recorded. I would now like to turn the conference over to Josh Carroll with Alpha IR. Please go ahead.

Thank you, operator. With me on the call today are Deron Bouchard, Chief Executive Officer, Ozzie Ginsberg, Chief Financial Officer, and Smadar Lavie, Vice President of Investor Relations and ESG Planning Reporting. Before we begin, we would like to remind you that the 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. Actual future results may differ materially from those projected as a result of certain risk and uncertainties. For a discussion of such risk and uncertainties, please see risk factors as described in ORMAT technologies and 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. 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. Before I turn the call over to management, I'd like to remind everyone 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 Boshar. Duran, the call is yours.

Thank you, Josh, and good morning, everyone. Thank you for joining us today. ORMAT concluded 2023 on a positive note with 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. Throughout the year, ORMAT maintained its momentum with a successful development execution and enhanced operational performance from existing facilities, coupled with a promising recovery in the product sector. These factors collectively contributed to a 13% increase in total annual revenues and a 10.6% increase in full-year adjusted EBITDA. Throughout 2023 and the beginning of 2024, we successfully augmented our capacity by adding 239 megawatts through development projects and acquisitions. Among these portfolio additions, 157 megawatts were integrated into the electricity segment comprises 100 megawatts 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 multi-year capacity expansion targets, further strengthening our EBITDA and earnings generation in 2024 and beyond. 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 goal 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. 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 products. 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. 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 the potential to reach between 2.1 gigawatts to 2.3 gigawatts across our portfolio by end of 2026. We anticipate a significant increase of 7% and 10% in revenues and adjusted EBITDA, respectively, for 2024. 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 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. 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? Thank you, Doron.