- Scatec has reported a strong third quarter with accelerating growth and progress in reducing corporate debt.
- The company’s proportionate revenues rose by 22% to NOK 2,953 million, compared to NOK 2,416 million in the same quarter last year.
- However, EBITDA decreased to NOK 1,063 million from NOK 1,520 million, influenced by prior year divestment gains and a catch-up payment from the Philippines.
- Power production revenues totaled NOK 1,178 million with EBITDA at NOK 955 million, down from the previous year, mainly due to a one-time divestment gain in South Africa and a payment in the Philippines.
- Total power production remained stable at 1,202 GWh.
The Development & Construction segment showed robust growth, reporting revenues of NOK 1,760 million, nearly tripling from NOK 631 million a year earlier, driven by projects in Egypt, the Philippines, Brazil, Botswana, South Africa, and Tunisia. The segment maintained a gross margin of 11.4%, at the high end of guidance. CEO Terje Pilskog highlighted that construction activities are on schedule with good margins, while Scatec repaid approximately NOK 1 billion in corporate debt, improving liquidity.
In the Philippines, Scatec added two Battery Energy Storage System projects totaling 80 MW/80 MWh to its backlog, complementing existing hydropower facilities, and increasing the backlog to an all-time high of 3,392 MW.
The company continues to follow its deleveraging strategy, repaying NOK 943 million in the quarter, reducing gross corporate debt by around 27% to NOK 6.7 billion over the past year, and decreasing net interest-bearing debt to NOK 4.3 billion. Consolidated revenues and other income were NOK 1,080 million, EBITDA NOK 785 million, and net profit NOK 5 million.
Looking ahead, Scatec projects full-year 2025 proportionate power production between 4.1 and 4.2 TWh and raised its full-year EBITDA estimate midpoint to NOK 4.35 billion. The remaining Development & Construction contract value stands at NOK 4.1 billion with expected gross margins of 10-12%.
The company is refining its strategic roadmap through 2030, aiming for average annual equity investments of NOK 1 billion, reducing corporate debt to NOK 4 billion, and realizing at least NOK 3.4 billion from divestments. Scatec will continue focusing on Solar PV, Battery Energy Storage Systems, and building a wind portfolio while concentrating development on high-growth markets.
CEO Pilskog stated that Scatec is ahead of its 2027 strategic targets and is sharpening its roadmap toward 2030 by combining profitable growth, deleveraging, and active portfolio management to create long-term value and lead the renewable energy transition in its markets.
Author: Bryan Groenendaal
