Norway-based renewable energy solutions provider Scatec reported revenue of NOK1.64 billion (~$177 million) in the first quarter (Q1) of 2026, down 31.3% year-over-year (YoY) from NOK2.39 billion (~$258 million).

The company attributed the revenue decline to a NOK426 million (~$45.96 million) divestment gain recognized in the same quarter last year.

The change is also explained by lower production in Ukraine due to damage to a power plant sustained in Q4 of 2025, lower payment levels, normal hydrology, and thus lower production in the Philippines, and foreign currency effects. Further, a lightning strike to the grid connection at the Apodi plant in Brazil resulted in temporary downtime during the quarter.

The company reported a loss of NOK192 million (~$20.7 million), compared to a profit of NOK764 million (~$82.4 million) in Q1 2025.

Revenue from power production totaled NOK929 million (~$100 million) during the quarter, down 42.8% YoY from NOK1.62 billion (~$175 million).

The total proportionate power production from Scatec’s power projects during the quarter was 1,046 GWh, compared to 979 GWh the previous year.

Revenue from development and construction stood at NOK695 million (~$75 million), down 7.5% YoY, from NOK751 million (~$81 million) the previous year.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at NOK774 million (~$83.5 million), a 43.9% YoY decline from NOK1.38 billion (~$149 million).

Earnings per share were a loss of NOK1 (~$0.11), compared with NOK4.80 (~$0.52) in the previous year.

Terje Pilskog, Chief Executive Officer at Scatec, said, “Several events impacted the revenues in the quarter. One power plant in Ukraine remains out of service, and our Apodi plant in Brazil experienced downtime after a lightning strike. We reversed an accounting gain of NOK56 million (~$6.04 million) related to the divestment in Vietnam because the earn-out payment conditions were not met. And finally, we also had a negative FX effect relative to last quarter as the NOK has strengthened against our main operating currencies.”

The company has a backlog portfolio of 5,882 MW of generation capacity and 4,617 MWh of battery storage capacity as of the end of March 2026.

During the quarter, Scatec added one project to its backlog, bringing total wind capacity in Egypt to 900 MW. The backlog comprises 11 projects, including solar, wind, battery storage, and green hydrogen. Scatec has 10 solar and battery storage projects under construction.

Operational Highlights

Scatec commenced commercial operation of the first phase of the 1.1 GW Obelisk solar and 100 MW/200 MWh battery storage project in Egypt, and the 120 MW Sidi Bouzid & Tozeur solar power projects in Tunisia.

In the quarter, the company commenced construction of five new projects, totaling 575 MW of solar capacity and 80 MWh of battery storage capacity.

Scatec holds a portfolio of projects under construction and in backlog, totaling 7.3 GW of generation capacity and 6.2 GWh of storage capacity. It has a pipeline of 5.9 GW of generation capacity and 2.4 GWh of storage capacity.

Outlook

The company reduced the full-year 2026 proportionate EBITDA estimate for power production by NOK200 million (~$21.58 million), to a midpoint of NOK3.75 billion (~$404.61 million). The reduction is mainly explained by the reversal of the sales gain of NOK56 million (~$6.04 million) related to the divestment in Vietnam and negative foreign currency effects of NOK150 million (~$16.18 million) based on exchange rates as of March 31, 2026.

“The company expects to see a steady flow of new projects coming into operation over the next 12 months. At the end of the quarter, the remaining contract value in the development and construction segment increased to NOK4.2 billion (~$453.16 million), up from NOK1.8 billion (~$194.21 million) at the end of last quarter. And we expect to continue to realize a gross margin of 10% to 12% on this portfolio,” Pilskog noted.

The uncertainty surrounding the second-quarter EBITDA estimate in the Philippines and the full-year 2026 proportionate EBITDA estimate has increased amid heightened volatility, driven by global geopolitical developments and the effects of El Niño. Full-year power production is estimated at 5,050-5,450 GWh.

The company said that the full-year 2026 EBITDA is estimated to range from a loss of NOK125 million (~$13.49 million) to NOK135 million (~$14.57 million). Additional attention is given to hydro operations in the Philippines due to their significant EBITDA share, strong seasonality, and exposure to spot-market fluctuations.

Scatec reported revenue of NOK1.03 billion (~$106.3 million) in Q4 2025, declining 10.8% YoY from NOK1.15 billion (~$119.23 million).