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Ormat Technologies Inc (ORA) Q1 2021 Earnings Call Transcript

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ORA earnings call for the period ending March 31, 2021.

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Ormat Technologies Inc (ORA 3.08%)
Q1 2021 Earnings Call
May 7, 2021, 8:00 p.m. ET

Contents:

  • Prepared Remarks
  • Questions and Answers
  • Call Participants

Prepared Remarks:

Operator

Good day and welcome to the Ormat technologies Q1 2021 earnings conference call. [Operator Instructions]

At this time, I would like to turn the conference over to Mr. Rob Fink, please go ahead, sir.

Rob Fink -- Managing Partner

Thank you, operator. Hosting the call today are Doron Blachar, Chief Executive Officer; Assaf Ginzburg, Chief Financial Officer; and Smadar Lavi, Vice President of Corporate Finance and Investor Relations. Before beginning, we'd 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 risk and uncertainties. For a discussion of such risks and uncertainties, please see the Risk Factors section as described in Ormat Technologies annual report on Form 10-K and their 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's 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 company's 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 the slide presentation accompanying this call may be accessed on the company's website at ormat.com under the presentation link that is found in the Investor Relations tab.

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

Doron Blachar -- Chief Executive Officer

Thank you, Rob, and good morning, everyone. Thank you for joining us today. As we indicated in our fourth quarter calls a few weeks ago with you 2021 is a bit the view in which we lay additional groundwork to accelerate the growth of our electricity in our rapidly growing energy storage segments. We made significant progress ramping the generation of the Puna plants in Hawaii. We started the operation of the valency to energy storage facility in California. And we recently completed the construction of the McGinnis expansion in Nevada in Nevada, which is now in late stage of South. On the same time, we're making progress in our efforts to rebuild our backlog, which is still facing the building of the pandemics related headwinds. Is dynamics explained the low revenue and profitability reported in the fourth quarter compared to last year with $9.9 million reduction in the product segment gross profit is the main rival. However, the strength and growth of the electricity and storage segment, which are on track to meet our growth plans, partially compensated that significant reduction with ample liquidity combined with the growing pattern of storage and electricity opportunities and tailwind from government support in renewable energy. We are confident that we can achieve our stated goals of increasing our generating portfolio by 50% to approximately 1.5 gigawatts by 2023. With a significant contribution coming for energy storage business.

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

Assi Ginzburg -- Chief Financial Officer

Thank you Doron. Let me start my review of our financial highlights on slide five. total revenue for the first quarter were 160 $6 million down 13.4% for Brian. The driver for the decrease was the product segment, which was impacted by low product backlog as a result of covenanting. First Quarter 2021 consolidated gross profit was $73.6 billion resulting in a gross margin of 44.3% 170 basis points higher during the first quarter of 2020. mainly driven by In this storage segment, we delivered net income attributed to the company's stockholders of $15.3 million, or 27 cents in the quarter, compared to $26 million, or 51 cents per share last quarter, same time last year on an adjusted basis, taking into consideration the $8.8 million of after tax one time net expense related to February firecrackers in Texas. Net income attributed to the company's stockholders was $24.1 million dollars or 42 cents per diluted share, compared to 51 cents per diluted share, same period last year. Breaking the revenues down and acquisitive segment revenues increased 1.5% to 140 $5 million supported by contribution from New added capacity. It has the most complex and will resume operation. This was offset by lower generation. It will call your complex in Kenya due to continue co payments, and lower performance of the resource that one will discuss shortly. In the product segment, revenue declined at 2% to $8.6 million, representing 5.2% of the total revenues in the first quarter.

The decline year over year is expected to continue to add 2021 is the continued global companies collected the ability to sign new large contracts. Energy Storage second revenue interest nearly 600% year over year to $12.7 million in the first quarter, representing 7.6% of our total revenue for the quarter, excluding the one time positive data for $5.4 million in revenue related to the revenue we incurred in February for classes in Texas. The agency of the year was approximately 300%. This growth for many reasons our revenues from the required for more energy assets and the contribution of the rest of your Texas facility that commenced operation in April 2012. We're going to slide six gross margin for the electricity segment for the quarter. This is year over year to 45%. This was the result of the absence of business interruption insurance processor tuner and the fact that we're still ramping up the output exponent. Also we saw a reduction in revenue in Korea president Jr. in the product segment, gross margin was 6.6% in the quarter compared to 22% in the same period last year. The product segment gross margin in 2021 will be impacted by significant reduction in the revenue energy story segment reported a positive gross margin of 62.4% for the first quarter, and 34.7% adjusted gross margin excluding the one time impact of the February power crisis in Texas. It was compared to a negative gross margin in the first quarter last year. The improvement was primarily driven by the position of the homeowner storage efforts in California. adjusted EBIT decreased 6.4% to $99.2 million in the first quarter, and electricity segment generated 96% of Walmart total adjusted EBITDA in the first quarter.

The product segment generate 1.2% of the total adjusted EBITDA for the quarter in the third segment reported adjusted EBIT of $3 million, which was presented 3% of the token adjusted EBIT of the company. reconciliation of EBITDA and adjusted EBIT are provided in the appendix. Turning to slide seven, you can see the Q1 2021 results were negatively impacted by February power prices in Texas as we discussed in the last round, in February 2021 extreme weather conditions in Texas because of the reduction in electricity supply, along with the record demand for electricity. The extreme weather condition resulted in shortage of electricity supply, which costs electricity and our prices to reach record 1000 of dollars per megawatt hour starting February 16. And until February 19 already facility could not charge from the grid, usually energy emergency a lot, which resulted limited ability of the revenue storage facility to provide any artist services in order to reduce our merchandising increase our revenue 2021 40 census. The company started and entered a few months ago into a hedge transaction for 80% of the Revenue capacity, which is currently not in effect. Due to the inability to operate the facility during this time we recorded in Q1 2021. a net expense of $9.1 million relates to the hedge transaction. In addition, we recorded as part of our DNA cost inexpensive $3 million. We learned to imbalance charges from the grid operator in respect to our demand response operation that we estimate, we probably may be unable to collect such receivable.

Recording and discussing the record were to speak to some of the inbound charges and revenue allocated to audio customer response. That may be interesting as positively related. Turning now to slide eight. Our net debt as of March 31 2021, was $936 million. Cash and restricted cash as of March 31 2021, was $465 million, compared to $537 million as of December 31st 2020. In addition, we had 2018 and dogs have marketable securities. Slide eight breaks down the use of cash in the gym and illustrates the ability to reinvest in a business service bid and return cash to shareholders in the form of cash dividends, all from cash generated from operation or long term and short term debt as of March 31 2021, was $1.4 billion net of deferred financing cost and its payment schedule is presented on slide 20. The average cost of debt of the company is currently 4.9%. May 5, a company's board of directors declared approved in otherwise the timing of quarterly dividends of 12 cents per share pursuant to the company's dividend policy. The dividend will be paid on June 1 2021, to shareholders of record as of course of this day on May 10 2021. In addition, we expect to pay a dividend of 22 cents per share in the next two quarters. That concludes my financial overview.

I would like now to turn the call over to Doron to discuss some of the recent developments in our growth plan for the next three years. Doron?

Doron Blachar -- Chief Executive Officer

Thank you Assaf. Turning to slide 11 for look at our operating portfolio. power generation in our power plants increased by approximately 2% compared to last year. In the first quarter, we'll see the contribution of steam both is it started operations in mid 2020 and a foreigner that is operating still in passive capacity. The new capacity added was offset by lower generation and continuous curtailment is our full carrier power. We continue to execute on our goals, bringing mcginnises online as planned, and it is now in final stages of starting. The McGinnis hills enhancements will provide electricity for approximately 6000 homes, while offsetting approximately 63,000 tons of co2 emissions, providing the highest level of efficiency and safety in the geothermal industry. As noted on slide 12 Puna resumed operations in November 2014. We ramped for generations for approximately 20 megawatts. on the field side, we have connected one new injection we're doing a press and once we will complete the connection of another world during the second quarter of 2021. With along with repairs to the bottom interval unit to gradually increase generating capacity to near its full level by mid 2021. Assuming connection of the world so the power plants will be successful. Subsequent to the end of the quarter, we will notify that the new PPA with telco is suspended and we may be required to complete an environmental study. In addition, the PFC order the parties to review the PPA race and new environmental study can take one to two years. telco filed a motion to reconsider this decision. And we are still considering the impact of the Bussi older was that in Hawaii. I would like to remind you that our current PPA is currently a significant higher prices. And it is in place until the end of 2027.

Turning to slide 30 our revenue in Australia is down year over year as a result of a combination of the curtailment that continued into the first quarter, and the reduction in the performance of the entire resource that reduce the generation generating capacity by proximately 45 minutes. We're operating to restore the complex generating capacity capacity throughout reading containing Kenya and we're optimistic We'll see an increase in production in the second half of this year. In Kenya, we are also encouraged by the collection from kplc will continue to pay monthly invoices and as a result of increasing overdue amounts. Turning to flag 14 for an update on our backlog. Our product segments has been the bulk of our business most impacted by the COVID-19 sentence. With our customers projects around the world being delayed. However, we believe this is a shorter phenomenon. And we see many opportunities that can mature to a signed contract before the end of this year. As of May 5 2021, our product segment backlog was $37 million. We anticipate continued weakness in our product revenues in 2021. And as a result, our 2021 guidance for this segment is significantly lower than recently. As I discussed on our last earnings call, our business model is resilient. And a key part of it relates to our vertically integrated structure, which enables us to better allocate our manufacturing capacity and resources while focusing on internal initiatives to support our activity segment. In the segment, revenues increased this quarter approximately 200% the first quarter of 2021 compared to 2020. We firmly believe that as the global pandemic abates, we will see increasing demand for products around the world.

Partially offsetting the weakness of the product segment has been a consistent improvement in our energy storage this energy stores discussed slide 15 continues to evolve, to grow and to become more profitable and acid presented in a financial imbalance. This quarter we commissioned the versatile 10 megawatt 40 megawatt power storage facility in California, which provides local resource adequacy to Southern California Edison under the 20 year energy storage agreement. In addition, the facility provides ancillary services and energy optimization through participation in merchant markets run by the California independent system operator. Also this quarter we released for construction to storage projects in New Jersey. One is a 20 megawatt facility and the other a seven megawatt facility that will both provide services to PJM. Moving to slide 16, we continue to see further support in the renewable energy coming from the new administration in the US foreign legislation enacted in December 2020. That extended the PTC and ICC for renewable projects. The first quarter of 2020 has seen renewed efforts to further extend tax credits for renewable projects, including geothermal energy storage. House Democrats introduced the green act in February 2021, a comprehensive clean energy tax proposal and shortly after, in March 2021, President by them unveiled American jobs plan, which includes among the proposal a 10 year ICC nptc extension, that will be fully refundable. In April 2021, Senate Democrats introduced the energy tax proposal, the clean energy for America. This bill seeks to consolidate the 40 plus existing clean energy tax incentives into one tax neutral incentive and propose that all zero emission power projects placed in service after 2022 would qualify for 10 years $25 a megawatt hour PTC for clean energy projects. This will be placed in service after 2022 or 30%. Investment actually that could be paid in cash.

In addition, in very important while worthless. The Senate bill authorizes a separate 30% investment tax credit for stand-alone storage facility placing service after 2020. both the House and Senate proposed bill and the White House proposed plan would benefit renewable energy development across the nation. These proposals are currently under consideration for his infrastructure and climate package that we expect will move through Congress this summer. And fourth. We believe that this enhanced flexibility in the duration of the availability of the tax credits, and the options in claiming them will encourage renewable developers to get construction going on more projects over the next decade. Moving to slide 18, as I mentioned at the beginning of this For 2021 will be a significant build up here comprising mainly of geothermal projects with a robust growth plan to increase by 2023 our total portfolio by almost 50% with a significant contribution from the energy storage business as detailed in the following slides. This input is subject to obtaining alternative and regulatory approvals required, as well as completing the development and construction of these power plants as planned. In slide 19, you can see there's our medium term goal in the electricity segment is to add between 250 megawatts, and 270 megawatts by the end of 2023. And in our rapidly growing energy storage portfolio, we are planning to enhance our growth interest rates or portfolio by between 200 to 300 megawatts by the end of 2020. So, this represents an approximate 29% interest, you know, geothermal and solar capacity and 400% interest, you know, energy storage assets by the end of 2023. Achieving the gross salary is expected to help us reach an annual run rate of $500 million in adjusted Ibiza toward the end of 2022, that we expect to continue to grow as we move forward with our plans in 2023. And the next slide is the forbin project under way that comprise the majority of our 2023 goals.

Were already secured long term PPA for the majority of these projects, and affirmed the resource viability. We will provide an update on Florida expansion, the timeline as we evaluate our moving to slide 21 in 22. The second layer of our growth growth plans come from energy sources. That's when one demonstrates the energy storage facilities we have announced or started construction. The other projects including our rosters are in different stages of development. And their release will require site control and execution of an interconnection agreement or subject, obviously, to economic justification. As you can see, it's like 22, our energy storage pipeline increased from 1.2 gigawatts to two gigawatts, as we were able to identify and make progress on new prospects that are expected to be mature beyond 2023. Certainly the pipeline includes 49 potential projects. As I mentioned earlier, we believe that we can develop from this potential pipeline between 200 to 300 megawatts by 2023, mainly in Texas, New Jersey and California. This target excludes any add on from m&a activity that we are proactively seeking. We're going to slide 23 the significant growth in both electricity and storage segments will require robust capital investments over the next couple of years. to fund this growth, we have over $900 million of cash and available lines of credits. Our total expected capital spend for the remainder of 2021 includes approximately $360 million for capital expense, expenditures for construction of new projects of geothermal, solar and storage, enhancements or existing geothermal power plants that management release for construction. Maintenance of capital expenditures during our work with a pool of partners and enhancements or production facilities, as this is slide 2019.

The overall format is one position with excellent liquidity and ample access to additional capital to fund future initiatives. Please turn to slide 24. for discussion of how 2021 guidance, we expect total revenues between $645 million and $680 million, with electricity revenues between $570 million and $580 million dollars. That implicitly segment includes $33 million from the Puna power plants in Hawaii, assuming we will make our plans to bring it close to full operation in mid 2021. We expect product segments revenue between $50 million and $70 million guidance for the energy storage revenue increased to reflect the additional revenues recorded in Q1 related to revenue. And he's not expected to be between $25 million and $30 million. We expect adjusted EBITDA to be between 400 and $410 million dollars. We expect annual adjusted EBITDA attributable to minority interest to be approximately $32 million. Before I move the call to the q&a, I'm sure that you all have questions around The short seller report, I reminded you that the last set of 2021 on a board of directors established a special committee of independent directors to investigate, among other things, certain claims made in the report published by the short seller regarding the company compliance with anti corruption law. The special committee is working with outside legal counsel to investigate the claims made. All members of the special committee are independent in accordance with our corporate governance guidelines. The New York stock listing standards and sec rules applicable to board of directors in general. We're also providing information as requested by the SEC and the DOJ related to the claim. And we are unable to further discuss to answer any questions regarding this issue. As I said in my opening 2041, there's going to be a significant buildup here accelerating our growth in the storage and electricity segments. with ample liquidity combined with a growing pattern of storage and electricity opportunities in tailwind from government support in renewable energy, I'm confident that we will be able to achieve.

This concludes our prepared remarks. And now I would like to open the call for questions, operator please.

Questions and Answers:

Operator

[Operator Instructions] Today's first question comes from Noah Kaye with Oppenheimer.

Noah Kaye -- Oppenheimer -- Analyst

Good morning, and thanks for taking the questions. If we can start with the electricity segment, you know, you've left guidance unchanged for the year. But we presume there are a few moving parts to that. You know, you mentioned the lower output at all Korea, you know, some timing considerations, you know, in other parts of the portfolio, can you maybe just help us bridge a little bit what, what seems to be you know, maybe going a little bit ahead of plan to offset, you know, any potential lower production from Kenya.

Doron Blachar -- Chief Executive Officer

And I'll say one that hasn't changed a bit earlier than what we originally anticipated. And in Kenya, we believe that we will be able to bring it back to its capacity during the year and hopefully be able to get back some of the lower revenues that that we have. And as we said it is similar to what we've expected. So all in all, balancing between all the things that we gain from Korea are the two main items.

Noah Kaye -- Oppenheimer -- Analyst

That's very helpful, and maybe not to get too technical, but to help us understand what is causing the lower resource performance. And and how do you mitigate that, you know, some of the potential ways that you can increase the output they're given legasus a cooling impact at the old carrier complex?

Assi Ginzburg -- Chief Financial Officer

Yes, so as you know, over the course over the life of a power plant, we every few years, you know, drill a makeup wells. And we had to plan that drilling campaign in in Korea. The words didn't came out as a strong respect to them. And our analysis is some in different temperatures within the resource in by changing the world and the way that was really assessing the different reservoir with the industry be able to bring it back to 250 megawatt capacity. That's very helpful. A question on the storage side. You know, I think as you mentioned, some hedges around rabbit Hill, just in general, as you develop your storage portfolio. What are you seeing in some of the availability, you know, of hedges or other instruments to help, you know, get more of a fixed revenue on on some of these projects, what kind of visibility Do you have, you know, on revenues for, you know, say the first three to five years of these projects coming online?

Doron Blachar -- Chief Executive Officer

So let me start by saying that with respect to revenue, the goal was to fake the revenue of the storage facility. And the issue we had is that we love the money on the head. But we could not generate the offsetting revenue because the storage facility would not be able to charge itself. Now, when we look at going forward, the markets of our SM electricity, I will say, in general, are not as advanced of some other commodities that no one may be familiar, but I do believe we will see in advancing that industry, there will, there will be some problems with that. With that being said, we are looking in some cases on a bass portfolio that will enable us who are for example, a tolling agreement or capacity agreements, to basically fix our revenue with our customers, instead of fixing it through a financial page. So that's something we would like to build. And when we look at the years, the goal is to do a combination of fixed transaction with a customer which can be a capacity payment, or a tolling agreement. And then on the other hand, we will be at some a merchant activity. I don't have the percentage, but again, love forges at this point, we are looking to him to reduce exposure and to guarantee a minimum return I was selected to the next few years will be probably a big difference between where we are today. I don't think there will be more hedging opportunities. I already seen the ice market being developed. But it will take time.

Noah Kaye -- Oppenheimer -- Analyst

Okay thank you very much I'll turn it over.

Doron Blachar -- Chief Executive Officer

Thank you.

Operator

The next question comes from Jeff Osborne with Cowen and company.

Jeff Osborne -- Cowen and company -- Analyst

Good afternoon, I had a couple questions on my end. Back on Kenya, not the facility itself. But I was wondering, the line unfortunately broke up when you were discussing the payments, can you just talk about you know the the relationship you have with the customer and the status of the accounts receivable would be helpful.

Doron Blachar -- Chief Executive Officer

So our relationship with the customer hasn't changed. Throughout QA one in line with what we've seen last few months, it kplc has paid in full the monthly charges. Without being said there is still roughly a $45 billion of prior invoices that haven't been paid yet. We are working with the customers. But we do understand that they you know, the situation in Kenya with COVID is not easy, they are under a quarantine I believe until May 15. With that being said, they are paying on a monthly basis. How does the sense of the monthly invoice which is very encouraging.

Jeff Osborne -- Cowen and company -- Analyst

Got it. And then as you know, there's seems to be sort of weekly or bi weekly news flow there around just the broader power company. You know, being pressured by everybody from the top of the government on down about, you know, renegotiating power prices to try to improve the profitability. Obviously COVID COVID is exacerbating that. But are there any ongoing negotiations about, you know, newer prices, or no?

Doron Blachar -- Chief Executive Officer

Well market has a long term PPA, and we have not been approached to discuss it. We are seeing what you guys seeing in the newspapers, and we are aware of it. But nobody approached us. I don't think that geothermal is the one that is the most expensive, as you also know it is a baseline electricity. And then we have the support of the government operating there. I think the best outcome for us is that this will continue. And at this point, we don't have any reason to think that it will not continue. The quality has been.

Jeff Osborne -- Cowen and company -- Analyst

Perfect. I just had one one more quick one on Kenya if you don't mind. Can you quantify the degree of curtailment, you know, of the 150 megawatts is it you know, roughly 10 20% or more meaningful, I just wasn't sure how to put it in perspective.

Assi Ginzburg -- Chief Financial Officer

The curtailment is different between the days and the weekends. Someday you can get to 20% a settlement otherwise you get to 10% a, but and it's also usually overnight for a few hours is not for the entire day. So it's very hard to average it.

Jeff Osborne -- Cowen and company -- Analyst

Got it, and then just did two last ones.

Doron Blachar -- Chief Executive Officer

I just want to mention as you remember, the curtailment doesn't impact the revenue and The match because most of the data that we're getting our capacity payments, so I say because they may pay last year, probably for the whole year was three $4 million, it's not a big amount versus the company's revenue, the key for us is to fix the resource. So we can, you know, go back to the 150 capacity that we can operate in.

Jeff Osborne -- Cowen and company -- Analyst

Got it makes sense. And Two other quick ones, so Puna with the suspension of the PPA, how does that mechanically work? Like are you just paid the merchant price? And the facility still operating? Or, or what are the mechanics of that facility?

Assi Ginzburg -- Chief Financial Officer

All the mechanics is this we have a DPA and the 2020 end of 2027. This is not a merchant, it's actually a relatively high GPA. That was signed many years that and based actually, on the PLC requests, you know, we negotiated a new PPA, that could come into effect only after the PRC approved it. So actually, the delay of the PPA is actually on the short term, you know, increasing our revenue because the pricing on the existing entity is higher. At this point, you know, we still believe the PPA will be approved helco is the one that approached the BOC to reconsider, and they are reconsidering the they they're reconsidering their decision. So we're waiting. And again, this relates only to the new PPA that comes into effect only after we get approved. So currently, we do have a big deal until the end of '27.

Jeff Osborne -- Cowen and company -- Analyst

Got it? Okay, thank you for the clarification. And then the last one I had is just if you add up what you did in Q1 for the product segment coupled with I think it was 37 million in the product backlog, you don't get to the low end of the range. So you must be assuming for the year that there's additional bookings Can you just talk about, you know, a the confidence in that and then be geographically, you know, where that would come from? Is it from New Zealand or some other country?

Doron Blachar -- Chief Executive Officer

You're correct. Obviously, the numbers do not add to 50 to 70. But we are over the last few months negotiating a couple of contracts with respect to sign and assuming assuming we will be able to sign them in the next few weeks. They will impact revenue recognition in Q4 of this year. And based on these negotiations, we believe that we will be within the guidance that we gave. And these contracts on two or three different countries, not New Zealand is currently not one of them.

Jeff Osborne -- Cowen and company -- Analyst

Okay, thank you. That's all I had.

Assi Ginzburg -- Chief Financial Officer

Thank you.

Operator

[Operator Instructions] The next question comes from Mark Strouse with JPMorgan.

Mark Strouse -- JPMorgan -- Analyst

Yes. Good evening, thanks very much for taking our questions. A lot of focus on raw material pricing in the market right now. Can you can you just kind of give us an update on how you're potentially incorporating that into in some of these growth projects that you're bidding on?

Doron Blachar -- Chief Executive Officer

We're seeing, as you say, an increase in raw materials. And also, you know, we've seen that the transportation issues across the world in the law, the impact a cost, but it is impacting, you know, the entire industry is not interesting specifically Oh man. So, when we are responding to a project, you know, we are pricing them with the current cost that we know that cost with respect to enter, but the same depth to our competitors. So, well, the same ground here.

Mark Strouse -- JPMorgan -- Analyst

Yeah, yeah. Make sense. And then you kind of touch on this with competition. Are you seeing any, any change in the competitive dynamics in a in a in a kind of new start-up companies or anybody else getting more aggressive in the market?

Doron Blachar -- Chief Executive Officer

We'll see. And on the product side, the same a competition has in the past withdrawable done an excellent job. These are the two main competitors that we see in the different places that we have always be the response.

Mark Strouse -- JPMorgan -- Analyst

Okay, thanks Doron.

Doron Blachar -- Chief Executive Officer

Thank you.

Operator

At this time, there are no further questioners in the queue. And this ends the question and answer session. I would now like to turn the conference back over to Ormat management for any closing remarks.

Doron Blachar -- Chief Executive Officer

All I say, thank you all for participating. And thank you for your continued support. And we'll see 2021 is a very a build up here. This will bring us and continue the growth going forward. Thank you very much.

Operator

[Operator Closing Remarks]

Duration: 41 minutes

Call participants:

Rob Fink -- Managing Partner

Doron Blachar -- Chief Executive Officer

Assi Ginzburg -- Chief Financial Officer

Noah Kaye -- Oppenheimer -- Analyst

Jeff Osborne -- Cowen and company -- Analyst

Mark Strouse -- JPMorgan -- Analyst

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