Dipping again into the Dow Chemical executive...

Dipping again into the Dow Chemical executive ranks for new leadership, Magma Power on Monday announced that Paul M. Pankratz has been named chief executive and board chairman at the Rancho Bernardo-based geothermal energy company.

Pankratz, 59, replaces Andrew W. Hoch as chairman of the board and Arnold L. (Bud) Johnson as Magma Power’s president and chief executive officer. Hoch will remain chairman emeritus and a board member. The CEO position has been vacant since Johnson resigned last June.

Pankratz, who has been on the Magma board of directors since 1985, is leaving a 35-year career at Dow Chemical to assume the management reins at Magma Power. Most recently, he was vice president of hydrocarbons, energy and materials management in the Dow Corporate Product Dept.

Both Hoch and Johnson were also Dow Chemical executives before joining Magma Power, which operates four geothermal power plants in the Imperial Valley with a maximum generational capacity of 148 megawatts.

Magma Power’s association with Dow Chemical extends close ownership and technological bonds between the two companies. The Midland, Mich.-based chemical giant owns 41% of Magma Power’s common stock. Much of the stock resulted from the conversion of the dollar value of technological assistance that Dow gave to Magma Power to help solve geothermal process technology problems.

That those process problems have been worked out are evident in Magma Power’s profitability. For the fiscal year ended Dec. 31, 1990, the company reported a profit of $30.2 million on revenue of $85.6 million. For the three quarters ended Sept. 30, Magma Power’s profit and revenue were $25.2 million and $71. 3 million, respectively, up from $21.9 million and $63.6 million over the corresponding nine-month period in 1990.