Oslo, 1 November 2024: 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.

“This quarter we are reporting strong financials and solid progress on strategic initiatives, highlighting our robust operational capabilities and disciplined approach to growth. In addition to strong power production performance, our D&C segment achieved solid underlying margins and construction progress, reflecting our commitment to operational excellence and efficiency,” says CEO Terje Pilskog.

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.

“We are very pleased to continue to deliver on our divestment plan with the announcement of three new transactions during the quarter. These transactions will increase our financial flexibility through substantial divestment proceeds, enabling re-investment of capital into new attractive renewable energy projects,” adds Pilskog.  

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

“We are well positioned with high visibility on attractive growth, mainly within solar and energy storage in our four core markets. Our strategy reaffirms our commitment to sustainable energy solutions, operational excellence, and value creation for all our stakeholders. Scatec has robust funding in place, and we are committed to deleverage our corporate debt,” concludes Pilskog.

Subsequent events

On 18 October 2024 Scatec reached financial close for the 103 MW Mogobe BESS project in South Africa and is preparing the project for construction start. Including the Mogobe project Scatec has 565 MW of solar and BESS under construction.

Additional information
Proportionate historical financial information on a country-by-country level is attached to the stock exchange notice.

A presentation of the results and strategy, followed by a Q&A session will be held at Scatec's headquarters at Skøyen Atrium III (1(st) floor), Askekroken 11, 0277 Oslo, today at 09:00 am CET. You can also follow the presentation and Q&A session from our website, or this direct link: Q3 2024 webcast

For further information, please contact:
For analysts and investors: Andreas Austrell, VP IR, phone: +47 974 38 686, andreas.austrell@scatec.com
For media: Meera Bhatia, SVP External Affairs & Communications, phone: +47 468 44 959, meera.bhatia@scatec.com

About Scatec  
Scatec is a leading renewable energy solutions provider, accelerating access to reliable and affordable clean energy in emerging markets. As a long-term player, we develop, build, own, and operate renewable energy plants, with 4.8 GW in operation and under construction across four continents today. We are committed to grow our renewable energy capacity, delivered by our passionate employees and partners who are driven by a common vision of ‘Improving our Future’. Scatec is headquartered in Oslo, Norway and listed on the Oslo Stock Exchange under the ticker symbol ‘SCATC’. To learn more, visit www.scatec.com or connect with us on LinkedIn.  

This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act