Scatec Posts $42 Million Loss in Q4 as Laos Projects Underperform
The company’s quarterly revenue was down 4.5% to ~$96.2 million
February 7, 2023
Norwegian independent power producer Scatec swung into a net loss of NOK 433 million (~$42 million) in the fourth quarter (Q4) of 2022, compared with a profit of NOK 136 million (~$13.14) year-over-year (YoY).
The company said its consolidated quarterly losses were due to reduced income from joint ventures (JVs) impacted by lower power generation from hydropower projects in Laos, Asia.
For the October-December quarter, the company posted revenue of NOK 993 million (~$96.2 million), a decrease of 4.5% YoY basis.
Scatec’s Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) came in at NOK 689 million (~$6.8 million), an 11% decline YoY, primarily due to higher operating expenses.
During the quarter, the company signed agreements to sell the Upington solar project in South Africa for a consideration of NOK 569 million and refinanced $100 million of Bridge-to-Bond into a term loan with core banks.
The greenhouse gas (GHG) emissions avoided from the renewable power projects where Scatec has operational control reached 0.5 million tonnes. For all projects where Scatec has an ownership share, the GHG emissions avoided reached 4.7 mill tonnes in 2022.
For the financial year (FY) 2022, Scatec posted a loss of NOK 1.228 billion (~$119 million) compared to a profit of NOK 456 million (~$44.4 million).
The company recorded a revenue of NOK 3.75 billion (~$363.6 million) for FY 2022, down 1.31% YoY.
The company said that for FY 2022, revenues were driven by hydro and storage operations in the Philippines.
EBITDA for FY 2022 stood at NOK 2.56 billion (~$248.2 million), a decline of 11.7% YoY.
The decrease in EBITDA compared to 2021 is mainly explained by the effects of the war in Ukraine and lower water inflow leading reduced power production in Laos, which were partially offset by contributions from new renewable power projects and foreign currency effects, the company said.
The company currently has a total renewable energy capacity of 4.6 GW under operation and construction across four continents.
The company posted consolidated revenue of NOK 1,163 million (~$110.6 million) for Q3, 2022, an increase of 10% year-over-year (YoY) primarily due to better power sales at higher prices in the Philippines.
For its second quarter (Q2), it recorded a revenue of NOK1,130 million (~$114 million), a year-over-year (YoY) increase of 12% from NOK1,007 million (~$102 million).