Internal tax accounting errors are forcing geothermal energy firm Ormat Technologies to re-do nearly all of its earnings statements for 2017, the company announced Wednesday.
Ormat does not know when the restated earnings reports will be completed. It will restate financial statements for the final three quarters of last year as well as the full-year report.
“As a result of the restatement, investors should no longer rely upon the company's previously issued financial statements for the periods set forth above, earnings releases for these periods, and other communications relating to these financial statements,” the company’s release reads. “The decision to restate these financial statements is 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 foreign tax credits in the U.S. prior to their expiration.”
Ormat Technologies also apparently gained some deferred income tax assets that were not permittable under U.S. accounting rules, according to the report. The delay also will impact release of its first quarter 2018 financial statements.
“The company identified a material weakness in its internal control over financial reporting related to accounting for income taxes,” the release reads. “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.”
Ormat Technologies owns and operates geothermal and recovered energy generation assets globally. The portfolio totals 851 MW spread across the U.S., Guatemala, Honduras, Indonesia and Kenya.
Several law firms, including Rosen and Bernstein Liebhard, have announced there are investigating the company on behalf of investors. Ormat stock dropped nearly one percent in morning trading.