ORMAT TECHNOLOGIES, INC. — Earnings Release 2018

Jun 20, 2018

Ormat Technologies Contact: Smadar Lavi VP Corporate Finance and Head of Investor Relations 775-356-9029 (ext. 65726) slavi@ormat.com

ORMAT TECHNOLOGIES FILES RESTATED FINANCIAL REPORTS AND FILES Q1 2018 FINANCIAL REPORT CONTAINING ADJUSTED RESULTS

RENO, Nev. June 19, 2018, Ormat Technologies, Inc. (NYSE: ORA) ("Ormat" or the "Company") today announced that it has filed an amended (i) Form 10-Q for the period ending June 30, 2017 (ii) Form 10-Q for the period ending September 30, 2017 and (iii) Form 10-K for the year ending December 31, 2017 with the U.S. Securities and Exchange Commission (SEC) to restate its financial results for the second, third and fourth quarters of 2017 and for the full-year of 2017. In addition, the Company has filed its quarterly report on Form 10- Q for the period ending March 31, 2018 with the SEC containing adjustments from the amounts previously reported on May 7, 2018.

As previously reported, upon the recommendation of its Audit Committee, Ormat's Board of Directors determined that the Company should restate prior period financial results based on the Company's conclusion that there were errors in the income tax provision primarily relating to the Company's valuation allowance based on the Company's ability to utilize Federal tax credits in the U.S. prior to their expiration and the resulting impact on the Company's deferred tax asset valuation allowance. Additionally, the Company netted certain deferred income tax assets and deferred income tax liabilities across different tax jurisdictions that are not permitted to be netted pursuant to U.S. generally accepted accounting principles (U.S. GAAP). The restatement impacted the "income tax (provision) benefit" line item in the Company's statements of operations, with associated impacts to net income and earnings per share and the "deferred income taxes" line items on its balance sheet.

The previously reported revenue, net income before tax and adjusted EBITDA for the second, third and fourth quarters of 2017 and for the full-year of 2017 remained unchanged.

						SCOPE OF RESTATEMENT
--	--	--	--	--	--	----------------------	--

	Year Ended December 31, 2017		Three Months Ended December 31, 2017			Three Months Ended September 30, 2017	Three Months Ended June 30, 2017
	As As Reported Restated		As Reported	As Restated	As Reported	As Restated	As Reported	As Restated
Income tax (provision) benefit	1.4	(21.7)	29.7	28.3	(11.0)	(6.2)	(6.4)	(32.8)
Net income	170.2	147.1	69.4	68.1	22.8	27.6	38.2	11.8
Net income attributable to the Company's stockholders	155.5	132.4	66.0	64.6	19.2	24.0	35.0	8.6
Diluted EPS:	3.06	2.61	1.29	1.27	0.38	0.47	0.69	0.17

Investor Relations Agency Contact: Rob Fink

Hayden - IR

646-415-8972

rob@haydenir.com

Adjusted net income attributable to the Company's stockholders1	151.9	155.2	66.0	64.6	21.1	25.9	29.5	29.5
Adjusted diluted EPS 1	2.99	3.06	1.29	1.26	0.42	0.51	0.58	0.58

In connection with the restatement of the full-year 2017 financial statements, the Company also made revisions to the same line items in certain quarterly financial statements for 2016 and its full-year 2016 and 2015 financial statements.

Q1 2018

The Company has also filed its quarterly report on Form 10-Q for the period ending March 31, 2018 with the SEC. Within this report, the Company adjusted the income tax benefit for the first quarter of 2018 compared to the amount reported on May 7, 2018. As a result of this adjustment, the Company's income tax benefit increased to \$26.9 million compared to \$2.1 million reported on May 7, 2018. The Company's amended net income attributable to the Company's shareholders is \$69.5 million, or \$1.36 per diluted share, compared to \$44.7 million, or \$0.88 per diluted share, reported on May 7, 2018. The Company's amended adjusted net income attributable to the Company's shareholders is \$25.1 million, or \$0.49 per diluted share, compared to \$24.4 million, or \$0.48 per diluted share, reported on May 7, 2018.

The previously reported revenue, net income before tax and adjusted EBITDA for the first quarter of 2018 remained unchanged.

(\$M)	Three Months Ended March 31, 2018
	As reported on May 7, 2018	As filed
Income tax benefit	2.1	26.9
Net income	49.4	74.3
Net income attributable to the Company's stockholders	44.7	69.5
Diluted EPS:	0.88	1.36
Adjusted net income attributable to the Company's stockholders 2	24.4	25.1
Adjusted diluted EPS 2	0.48	0.49

In addition, during the first quarter of 2018, based upon continued analysis of the specific provisions of the "Tax Cuts and Jobs Act", specifically the newly created requirement that global intangible low-taxed income (GILTI) earned by controlled foreign corporations (CFCs) must be included currently in gross income of the CFC's U.S. shareholder, the Company concluded it was more likely than not that the Section 78 gross up included in the GILTI calculation would provide an additional source of realization for the Company's foreign tax credits and production tax credits. Accordingly, in the first quarter of 2018, the Company recorded a tax benefit of \$44.4 million for the reduction of the valuation allowance related to foreign tax credits and production tax credits. In

¹ A reconciliation of Adjusted Net income attributable to the Company's stockholders is set forth below in this release

² Adjusted Net income attributable to the Company's stockholders and diluted EPS for the first quarter of 2018 excludes the \$20.3 million and \$ 44.4 million tax benefits recorded for the reduction of the valuation allowance related to foreign tax credits and production tax credits as reported on May 7, 2018 and as filed, respectively.

addition, due to the complexity of the new GILTI tax rules, the Company is continuing to evaluate this provision of the Act and the application of ASC 740. In May 2018, certain officials from the U.S. Department of the Treasury and the Internal Revenue Service made public comments about a plan to propose regulations related to GILTI that will confirm how to allocate certain income in the GILTI calculation. As a result, all or substantially all of the tax benefit of \$44.4 million recorded by the Company for the period ended March 31, 2018 is expected to be reversed in the period ended June 30, 2018. The range of the ultimate adjustment in the second quarter results is dependent upon multiple variables and the release of additional guidance in future periods may require changes to the Company's provisional estimates.

Furthermore, as previously reported, the Company identified a material weakness in its internal control over financial reporting related to accounting for income taxes. Management, with the oversight of the Audit Committee and the Board of Directors, continues to dedicate significant resources and efforts to improve the Company's control environment and take steps to address the material weakness identified. These efforts are intended both to address the identified material weakness and to enhance the Company's overall financial control environment.

ABOUT ORMAT TECHNOLOGIES

With over five decades of experience, Ormat is a leading geothermal company and the only vertically integrated company engaged in geothermal and recovered energy generation (REG), with the objective of becoming a leading global provider of renewable energy. The company owns, operates, designs, manufactures and sells geothermal and REG power plants primarily based on the Ormat Energy Converter – a power generation unit that converts low-, medium- and high-temperature heat into electricity. With 77 U.S. patents, Ormat's power solutions have been refined and perfected under the most grueling environmental conditions. Ormat has 530 employees in the United States and 770 overseas. Ormat's flexible, modular solutions for geothermal power and REG are ideal for the vast range of resource characteristics. The company has engineered, manufactured and constructed power plants, which it currently owns or has installed to utilities and developers worldwide, totaling over 2,600 MW of gross capacity. Ormat's current approximately 851 MW generating portfolio is spread globally in the U.S., Kenya, Guatemala, Indonesia, Honduras and Guadeloupe. In March 2017, Ormat expanded its operations to provide energy storage and energy management solutions, by leveraging its core capabilities and global presence as well as through its Viridity Energy Solutions, Inc. subsidiary, a Philadelphia-based company with nearly a decade of expertise and leadership in demand response, energy management and storage.

ORMAT'S SAFE HARBOR STATEMENT

Information provided in this press release may contain statements relating to current expectations, estimates, forecasts and projections about future events that are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally relate to Ormat's plans, objectives and expectations for future operations and are based upon its management's current estimates and projections of future results or trends. Actual future results may differ materially from those projected as a result of certain risks and uncertainties. For a discussion of such risks and uncertainties, see "Risk Factors" as described in Ormat Technologies, Inc.'s Form 10-K/A filed with the SEC on June 19, 2018 and Form 10-Q for the period ended March 31, 2018 filed with the SEC on June 19, 2018.

These forward-looking statements are made only as of the date hereof, and we undertake no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.

RECONCILIATION OF ADJUSTED NET INCOME ATTRIBUTABLE TO THE COMPANY'S STOCKHOLDERS

	Year Ended December 31, 2017		Three Months Ended December 31, 2017			Three Months Ended September 30, 2017	Three Months Ended June 30, 2017
	As Reported	As Restated	As Reported	As Restated	As Reported	As Restated	As Reported	As Restated
Net income attributable to the Company's stockholders	155.5	132.4	66.0	64.6	19.2	24.0	35.0	8.6
Adjusted for:
Tax benefit related to valuation allowance and other tax restructuring	(5.5)	20.9					(5.5)	20.9
One-time make whole premium paid in connection with the prepayment of OFC Senior Secured Notes and DEG loan	1.9	1.9			1.9	1.9
Adjusted net income attributable to the Company's stockholders	151.9	155.2	66.0	64.6	21.1	25.9	29.5	29.5

ORMAT TECHNOLOGIES, INC. AND SUBSIDIARIES

Ormat Technologies, Inc. and Subsidiaries Condensed Consolidated Statements of Operations For the Three-Month Periods Ended March 31, 2018 and 2017 (Unaudited)

	Three Months Ended March 31
	2018		2017
	(In thousands, except per share data)
Revenues:
Electricity	132,489	ਵ	115,776
Product.	48,672		74,122
Other	2,862
Total revenues	184,023		189,898
Cost of revenues:
Electricity	73,482		66,036
Product	33,726		49,452
Other	3,443
Total cost of revenues	110,651		115,488
Gross profit	73,372		74,410
Operating expenses:
Research and development expenses	1,108		602
Selling and marketing expenses	3,699		4,363
General and administrative expenses	13,849		9,949
Write-off of unsuccessful exploration activities	123
Operating income	54,593		59,496
Other income (expense):
Interest income	113		244
Interest expense, net	(14,344)		(14,923)
Derivatives and foreign currency transaction gains (losses)	(1,599)		1,338
Income attributable to sale of tax benefits	7,361		6,157
Other non-operating expense, net	(20)		(92)
Income before income taxes and equity in
losses of investees.	46,104		52,220
Income tax (provision) benefit	26,942		(11,004)
Equity in losses of investees, net	1,210		(1,599)
Net income	74,256		39,617
Net income attributable to noncontrolling interest	(4,748)		(4,423)
Net income attributable to the Company's stockholders	69,508	ಿ	35,194
Earnings per share attributable to the Company's stockholders - Basic and diluted: Basic:
Net Income	1.37	ಕೆ	0.71
Diluted:
Net Income	1.36	A	0.70
Weighted average number of shares used in computation of earnings per share attributable to the Company's stockholders:
Basic.	50,614		49,680
Diluted	51,051		50,491

ORMAT TECHNOLOGIES, INC. AND SUBSIDIARIES

Ormat Technologies, Inc. and Subsidiaries Condensed Consolidated Balance Sheets As of March 31, 2018, and December 31, 2017 (Unaudited)

(In thousands) ASSETS Current assets: ക ക 54,723 47,818 Cash and cash equivalents Restricted cash, cash equivalents and marketable securities 50,332 48,825 Receivables: 103,580 110,410 Trade Other 10,018 13,828 19,551 Inventories 20,069 Costs and estimated earnings in excess of billings on uncompleted contracts 40,945 41,134 Prepaid expenses and other 42,274 40,269 Total current assets 322,130 321,646 Investment in an unconsolidated company 34,084 63,109 21,599 Deposits and other 21,205 Deferred income taxes 124,304 57,337 Deferred charges 49,834 1,723,560 1,734,691 Property, plant and equipment, net Construction-in-process 293,542 345,563 4,674 Deferred financing and lease costs, net 4,922 Intangible assets, net…………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………… 84,771 85,420 Goodwill 21,253 21,037 ക ಕಾ Total assets 2,710,817 2,623,864 LIABILITIES AND EQUITY Current liabilities: ക ക Accounts payable and accrued expenses 103,551 153,796 38,500 51,500 Short-term revolving credit lines with banks (full recourse) Billings in excess of costs and estimated earnings on uncompleted contracts 10,458 20,241 Current portion of long-term debt: Limited and non-recourse: Senior secured notes 28,398 33,226 Other loans 21,495 21,495 Full recourse 2,809 5,081 Total current liabilities 205,211 283,345 Long-term debt, net of current portion: Limited and non-recourse: Senior secured notes 305,905 311,668 Other loans 237,245 242,385 Full recourse: Senior unsecured bonds 203,752 303,469 Other loans 46,506 46,489 Liability associated with sale of tax benefits 42,622 44,634 Deferred lease income 51,520 50,745 Deferred income taxes 48,074 61,961 9,074 8,890 Liability for unrecognized tax benefits 20,874 21,141 Liabilities for severance pay………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………… Asset retirement obligation 27,639 27,110 Other long-term liabilities 21,625 18,853 Total liabilities 1,318,989 1,321,748 Redeemable non-controlling interest 6,943 6,416 Equity: The Company's stockholders' equity: 51 51 Common stock Additional paid-in capital 888,778 890,485 410,758 327,255 Retained earnings (accumulated deficit) Accumulated other comprehensive income (loss) (909) (4,706) 1,300,385 1,211,378 Noncontrolling interest 84,500 84,322 Total equity 1,384,885 1,295,700 ക്ക ക Total liabilities and equity 2,710,817 2,623,864		March 31, 2018		December 31, 2017

ORMAT TECHNOLOGIES, INC. AND SUBSIDIARIES

Reconciliation of EBITDA and Adjusted EBITDA For the Three-Month Periods Ended March 31, 2018 and 2017 (Unaudited)

We calculate EBITDA as net income before interest, taxes, depreciation and amortization. We calculate Adjusted EBITDA as net income before interest, taxes, depreciation and amortization, adjusted for (i) termination fees, (ii) impairment of long-lived assets, (iii) write-off of unsuccessful exploration activities, (iv) any mark-to-market gains or losses from accounting for derivatives, (v) merger and acquisition transaction costs (vi) stock-based compensation, (vii) gains or losses from extinguishment of liability, (viii) gains or losses on sales of subsidiaries and property, plant and equipment and (ix) other unusual or non-recurring items. EBITDA and Adjusted EBITDA are not measurements of financial performance or liquidity under U.S. GAAP and should not be considered as an alternative to cash flow from operating activities or as a measure of liquidity or as an alternative to net earnings as indicators of our operating performance or any other measures of performance derived in accordance with U.S. GAAP. EBITDA and Adjusted EBITDA are presented because we believe they are frequently used by securities analysts, investors and other interested parties in the evaluation of a company's ability to service and/or incur debt. However, other companies in our industry may calculate EBITDA and Adjusted EBITDA differently than we do.

The following table reconciles net income to EBITDA and Adjusted EBITDA for the three-month periods ended March 31, 2018 and 2017.

	Three Months Ended March 31
		2018	2017
	(in thousands)
Net income \$		74,256 \$	39,617
Adjusted for:
Interest expense, net (including amortization
of deferred financing costs)		14,231	14,679
Income tax provision		(26,942)	11,004
Adjustment to investment in uncosolidated company:
our proportionate share in interest, tax and depreciation and amortization		3,530	—
Depreciation and amortization		29,437	25,542
EBITDA	\$	94,512 \$	90,842
Mark-to-market on derivatives instruments		962	(1,523)
Stock-based compensation		1,707	1,713
Merger and acquisition transaction cost		1,095	800
Write-off of unsuccessful exploration activities		123	—
Adjusted EBITDA	\$	98,399 \$	91,832