Scatec Posts a Profit of $38 Million in Q2 on Increased Project Development

The company’s total renewable project portfolio stood at 17.5 GW as of June 30, 2023


Norway-based independent power producer Scatec reported a net profit of NOK402 million (~$38.07 million) in the second quarter (Q2) of 2023, a significant improvement from the loss of NOK68 million (~$6.44 million) in Q2 2022, on higher income from renewable power generation and project development.

The company’s revenue increased to NOK1.23 billion (~$116.49 million), a 47% YoY increase from NOK836 million (~$79.17 million).

The revenue spike was driven by the increased YoY difference in power production revenue. The company stated that the revenue from power production for 2022 was adjusted due to a change in the company accounting policy, which resulted in the increased difference even with lesser power generated during the quarter.

The power production reached 873 GWh in the second quarter compared to 916 GWh in the same quarter last year.

The company owns and operates solar, wind, hydro, green hydrogen, and battery energy storage projects across the globe.

The total project portfolio stood at 17,520 MW, with 3,124 MW in operation, 1,271 MW under construction, 953 MW as project backlog, and 12,172 under pipeline projects.

The company recorded a gain of NOK315 million (~$29.83 million) related to the strategic sale of Upington solar projects in South Africa, NOK76 million (~$7.2 million) in increased revenues in Ukraine and foreign currency effects. It was partly offset by NOK95 million (~$9 million) in reduced revenues in the Philippines, driven by 25% lower production and the absence of ancillary services.

The sharp increase in development and construction revenues in the second quarter was due to the high accumulated progress of the projects under construction in South Africa, Brazil, and Pakistan.

Scatec recognized an impairment charge of NOK350 million (~$33.14 million) for its joint venture project with Equinor in Argentina in the quarter.

The company recorded an EBITDA of NOK904 million (~$85.62 million), a 65.27% YoY increase from NOK547 million (~$51.81 million).

Commenting on the quarterly results, Scatec CEO Terje Pilskog said, “It has been a busy quarter with a lot of advancement for our business, and I am pleased to see construction activities on all three of our large projects continue to progress according to plan. During the quarter, we continued to execute on our strategy that we presented to the market almost a year ago. We closed the NOK546 million (~$51.71 million) divestment of the Upington solar plants in South Africa and reached financial close for the NOK2.9 billion (~$274.64 million) Grootfontein solar project in the Western Cape of South Africa. We also maintained our focus on efficiency initiatives and finalized a major part of our cost control program launched in May this year.”

1H 2023

Scatec reported a net profit of NOK304 million (~$28.79 million) for the first half (1H) of 2023, as compared to the loss of NOK1.13 billion (~$107.03 million) in 1H 2022.

The consolidated revenue for 1H 2023 was NOK2.15 billion (~$203.61 million), a 34.3% increase from NOK1.6 billion (~$151.52 million) during the same period last year.

The power production from January to June reached 1,757 GWh compared to 1,784 GWh YoY.

During the first half of 2023, Scatec discontinued the development of projects in Brazil, Oman, and Madagascar and recognized an impairment charge of NOK55 million (~$5.21 million).

The EBITDA during 1H 2023 increased by 56% YoY to NOK1.53 billion (~$144.88 million) from NOK981 million (~$92.89 million).

In July, Scatec signed an agreement with Globeleq, an independent power producer, to sell its 52.5% equity share in the 40 MW Mocuba solar power project in Mozambique for $8.5 million. The Mocuba solar power plant is located in the Zambézia Province of Mozambique and was commissioned in August 2019.

Scatec’s total revenue in Q1 2023 rose 21% YoY to NOK919 million (~$87 million), primarily driven by higher hydropower production in the Philippines.