Scatec ASA

Earnings Release • Aug 16, 2024

Scatec second quarter 2024: Solid strategic progress

Scatec second quarter 2024: Solid strategic progress

Oslo, 16 August 2024: In the second quarter, Scatec reported proportionate

revenues of NOK 1.5 billion (5.8 billion), with an EBITDA of NOK 951 million

(1,379 million).

Power production revenues were driven by new plants in operation in South

Africa, Brazil and Pakistan and recognition of reserve market revenues in the

Philippines. Scatec's power plants generated 995 GWh in the quarter, up from

873 GWh during the same period last year on a proportionate basis, with revenues

of NOK 1.05 billion (1.2 billion). EBITDA ended at 873 million (992 million), a

38% increase adjusted for divestments.

The projects under construction in South Africa and Botswana are progressing

well. The D&C segment delivered NOK 470 million of D&C revenues, with a gross

margin of 36%, including a contingency release for the hybrid plant Kenhardt.

The underlying gross margin for the two projects under construction was 10%.

Additionally, Scatec is starting construction of the Sidi Bouzid and Tozeur

solar projects in Tunisia, with a total capacity of 120 MW (60 MW each), in

partnership with Aeolus SAS, part of the Japanese conglomerate Toyota Tsusho

Group. Including Tunisia, Scatec has already committed NOK 590 million of equity

investments to projects under construction, compared to the full year target to

invest 500-750 million of equity.

"I am pleased with another good quarter and strong overall results, with new

operating assets contributing positively. Our commitment to grow renewables is

evident and I am happy to see construction of our new projects progressing

well," says CEO Terje Pilskog.

Scatec continues to progress its strategy to deliver attractive renewables

growth and reached important milestones for several of its development projects

during the quarter. In Egypt, Scatec signed a 20-year ammonia offtake agreement

with Fertiglobe for the Egypt Green Hydrogen project and agreed Heads of Terms

for renewable ammonia offtake with Yara Clean Ammonia for its green hydrogen

project in Damietta. These agreements demonstrate the competitiveness of green

hydrogen and ammonia production in Egypt, driven by its abundant renewable

energy resources and strategic geographical location.

In Brazil, Scatec secured a 10-year power purchase agreement with Statkraft for

a 142 MW solar plant, and in Cameroon Release signed a lease agreement with ENEO

to expand its solar and battery storage capacity in the country. Additionally,

56 MW of BESS were added to the company's backlog to expand its ancillary

services activities in the Philippines.

Scatec also refinanced its hydropower plants in Benguet in the Philippines

during the quarter with proceeds to Scatec of approximately NOK 170 million.

"In recent weeks, we have signed agreements to divest our African hydropower

assets and to sell down part of our ownership in three solar power plants in

South Africa. With these agreements we progress on optimising our portfolio,

enabling re-investment of capital into new attractive renewable energy

projects," concludes Pilskog.

Second quarter consolidated revenues and other income were NOK 1.17 billion

(1.23 billion), EBITDA NOK 930 million (904 million) and the net loss was NOK

33 million (net profit of 402 million).

Outlook

The full year 2024 proportionate power production estimate is 4.1 - 4.5 TWh,

down by 100 GWh driven by second quarter performance. The proportionate EBITDA

estimate of NOK 3.75 - 4.05 billion is unchanged in the quarter.

Subsequent events

* On 30 July, Scatec signed an agreement with TotalEnergies to sell its 51%

stake in the African hydropower joint venture with Norfund and British

International Investment.

* On 1 August, Scatec closed the divestment of its 54% equity stake in the

8.5 MW solar power plant in Rwanda to Fortis Green Fund I Rwanda Holdings

Ltd (Fortis) and Axian Energy Green Ltd (Axian) for USD 1.38 million.

* On 2 August, Scatec signed an agreement with Greenstreet 1 Proprietary

limited, a subsidiary of STANLIB Infrastructure Fund II, managed by STANLIB

Asset Management Proprietary Limited, to sell part of its ownership in the

Kalkbult, Linde, and Dreunberg solar power plants, with a total capacity of

190 MW, for a gross consideration of ZAR 921 million (USD 50 million).

All these transactions are aligned with Scatec's strategic objective to optimise

the portfolio and re-invest capital.

Additional information

Proportionate historical financial information on a country-by-country level is

attached to the stock exchange notice.

A presentation of the results, 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 CEST. You can also follow the presentation and

Q&A session from our website, or this direct link: Scatec webcast Q2 2024.

(https://channel.royalcast.com/hegnarmedia/#!/hegnarmedia/20240816_3)

For further information, please contact:

For analysts and investors: Andreas Austrell, VP IR, phone:

+47 974 38 686, andreas.austrell@scatec.com

(mailto:andreas.austrell@scatec.com)For media: Meera Bhatia, SVP

External Affairs & Communications, phone:

+47 468 44 959, meera.bhatia@scatec.com (mailto: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 4.6 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

(https://scatec.com/) or connect with us on LinkedIn

(https://www.linkedin.com/company/scatec).

This information is subject to the disclosure requirements pursuant to Section

5-12 the Norwegian Securities Trading Act