- In the third quarter, Scatec reported proportionate revenues of NOK 2.42 billion (2.37 billion), with an EBITDA of NOK 1.52 billion (0.89 billion).
Scatec’s power plants generated 1,254 GWh in the quarter, up from 1,047 GWh in the same quarter last year on a proportionate basis, mainly driven by new plants in operation. Power production revenues were NOK 1.77 billion (1.04 billion) and EBITDA ended at 1.54 billion (0.81 billion). The increase was mainly driven by an accounting gain from the divestment in South Africa and strong contributions from the Philippines and Ukraine.
The Development & Construction (D&C) segment delivered revenues of NOK 631 million from the construction of Grootfontein in South Africa and the Mmadinare project in Botswana, with a solid gross margin of 12%. In Tunisia, the 120 MW Tozeur and Sidi Bouzid solar projects started construction during the quarter.
Scatec continued to deliver attractive renewables growth in the quarter and reached important milestones for several development projects. In Egypt, Scatec signed a 25-year power purchase agreement (PPA) for the 1.1 GW solar + 100MW/200MWh storage project, which is the first of its kind in the country. This agreement demonstrates how Scatec leverages innovative solutions and experience from one country to create new opportunities in other countries through collaboration.
Scatec also signed agreements to sell the African Hydropower JV to TotalEnergies and the Vietnam wind power plant to SUSI Asia Transition Fund, and divested parts of the solar plants from REIPPP round 1 and 2 in South Africa to STANLIB. These transactions show Scatec’s determination and ability to optimise the asset portfolio, reinforce its financial flexibility, and rotate assets to build scale in core markets.
Third quarter consolidated revenues and other income was NOK 2.97 billion (0.95 billion), EBITDA was NOK 2.66 billion (0.69 billion), and the net profit was NOK 1.65 billion (0.10 billion)
Outlook
- Full year proportionate power production of 4.2 – 4.3 TWh (reduced by 50 GWh)
- Full year proportionate EBITDA estimate of NOK 4,150 – 4,350 million (increased by NOK 350 million)
- D&C gross margins for projects under construction and in backlog is estimated at 10-12% (increased from 8-10%)
Strategic roadmap towards 2027
Scatec has made strong progress on its strategy over the past twelve months and will today present a further sharpening of its strategic roadmap towards 2027.
- To capitalise on attractive growth opportunities in backlog and pipeline, Scatec now targets NOK 750 million in equity investments annually
- Majority of the growth capital is expected to be deployed within Solar PV & Battery Energy Storage Systems in four defined core markets; South Africa, Egypt, Brazil and the Philippines
- The strategic ambitions will be self-funded through targeted divestment proceeds of at least NOK 4 billion, substantial D&C margins levered by a more capital light model, cash flows from operating power plants, and free available liquidity of NOK 2.2 billion at the end of the quarter
- To increase its financial flexibility Scatec targets corporate debt repayments of approximately 75% of the divestment proceeds
Author: Bryan Groenendaal
