Scatec ASA

Earnings Release • Jul 26, 2022

Second quarter and first half 2022: Stable operations and ramping up for construction

Second quarter and first half 2022: Stable operations and ramping up for construction

Oslo, 26 July 2022: In the second quarter 2022, Scatec's proportionate revenues

increased to NOK 1,130 million (1,007) with an EBITDA of NOK 517 million (601).

Power production rose to 916 GWh (860). Scatec is starting construction of two

major renewable power plants in South Africa and Brazil, ramping up site

activities in Pakistan and moving its first green hydrogen project in Egypt into

backlog.

"We reported solid operating results from our diversified portfolio of power

plants during the second quarter and power production increased seven per cent

compared to last year. We continue to see good availability and performance

across the asset portfolio," says Scatec CEO Terje Pilskog.

Power Production

Proportionate revenues in the Power Production segment increased by 16% from

last year to NOK 1,015 million (875) driven by higher power sales in the

Philippines, added capacity in Argentina, and foreign currency effects, which

were partly offset by lower revenue from Ukraine.

Power production in the Philippines ended 20% above the 5-year average, but

below the contracted sales volumes, as expected, and power was therefore

purchased in the market resulting in cost of sales of NOK 198 million and a

segment gross profit of NOK 810 million.

With a gross profit broadly in line with last year, EBITDA ended at 617 million

(660) due to increased operating expenses compared to last year, driven by added

capacity in Ukraine and Argentina, non-recurring costs, and foreign currency

effects.

Development and Construction

Scatec is starting construction activities of the company's hybrid solar and

battery storage plant in the Northern Cape Province of South Africa, which is

Scatec's largest investment to date. In addition, the team is kicking off

construction activities at the Mendubim solar site in the state of Rio Grande do

Norte in Brazil, which will strengthen our position in a major renewables'

growth market with our partners Equinor and Hydro Rein.

At the same time, Scatec is ramping up construction activities at the Sukkur

solar project in southeast Pakistan.

The projects under construction represent a total capex of NOK 15.3 billion. The

projects will generate NOK 8.9 billion in revenues for Scatec as EPC-provider

during the construction phase with an average gross margin of 10-12%. All major

equipment orders and construction contracts are now being placed.

Development activities continued at a high level in the quarter. The green

hydrogen project of 100 MW electrolyser capacity powered by 260 MW of solar &

wind in Egypt and the 20 MW Magat BESS project in the Philippines were added to

backlog. Further, Scatec has signed a binding term sheet with Yara Clean Ammonia

for offtake of green ammonia from the first phase of the project in Oman, under

development with Acme.

The project pipeline increased to 14.8 GW in Q2 from 14.6 GW in Q1 2022.

"In July, we reached two major milestones in our key markets South Africa and

Brazil, and Scatec is now accelerating activities on three projects. Going

forward, our top priority is to ramp up construction activities, optimise

returns of our backlog projects and continue to mature our pipeline.

Furthermore, we continue to develop our strategy to ensure we are in the best

possible position to both grow in the short term and capture longer term

opportunities," concludes Pilskog.

The company will host a Capital Markets Update on 29 September 2022.

Guidance

The proportionate Power Production full year 2022 EBITDA guidance is increased

to NOK 2.5 to 2.7 billion from NOK 2.3 to 2.6 billion, reflecting currency

exchange rates as per the end of the second quarter.

Scatec's second-quarter consolidated revenues were NOK 836 million (874), with

an EBITDA of NOK 547 million (670) mainly explained by lower net income from JVs

and associated companies, lower revenues from Ukraine, and increased operating

expenses. The consolidated net loss was NOK 68 million (profit 110) mainly due

to increased financial expenses explained by currency effects, interest rate

increases on corporate funding, and non-recurring fees from refinancing in Egypt

and Vietnam.

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 2022

(https://channel.royalcast.com/hegnarmedia/#!/hegnarmedia/20220726_1).

For further information, please contact:

For analysts and investors: Andreas Austrell, VP IR, tel: +47 974 38 686,

andreas.austrell@scatec.com (mailto:andreas.austrell@scatec.com)

For media: Stian Karlsen, Communications Manager, tel: +47 920 67 460,

stian.karlsen@scatec.com (mailto:stian.karlsen@scatec.com)

About Scatec

Scatec is a leading renewable energy solutions provider, accelerating access to

reliable and affordable clean energy in high growth markets. As a long-term

player, we develop, build, own and operate renewable energy plants, with 3.5 GW

installed capacity across four continents today. We are committed to grow our

renewable energy capacity, delivered by our 700 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

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This information is subject to the disclosure requirements pursuant to Section

5-12 the Norwegian Securities Trading Act