Earnings Release • Apr 30, 2024
Earnings Release
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Scatec first quarter 2024: Pursuing new valuable growth after finalising all time high construction programme
Oslo, 30 April 2024: In the first quarter, Scatec reported proportionate
revenues of NOK 1.2 billion (2.6 billion), with an EBITDA of NOK 848 million
(765 million).
Scatec continues to deliver on its strategy of growing renewable energy in
emerging markets. The company finalised its largest construction programme
during the quarter and reached commercial operations for the solar plants in
Brazil (Mendubim) and Pakistan (Sukkur). Together with the hybrid solar and
battery storage plant Kenhardt in South Africa which started operating the
previous quarter, these projects were the main drivers for solid revenue and
EBITDA growth during the first quarter.
Power Production was 901 GWh in the quarter, up from 887 GWh during the same
quarter last year on a proportionate basis, with revenues of NOK 1.06 billion
(885 million). The contribution from new operating plants was the main driver
for an EBITDA increase of 23% to NOK 870 million.
Scatec started construction of 333 megawatts (MW) of solar power at the
Grootfontein plant in South Africa and the first phase of the solar complex in
Botswana. These projects will generate development & construction (D&C) revenues
of NOK 2.5 billion during the construction period with an estimated combined
gross margin in line with our 8-10% guidance. The equity returns are exceeding
Scatec's hurdle rate of 1.2x cost of equity. This demonstrates Scatec's
commitment to add profitable growth to the company's portfolio.
D&C revenues for the quarter was NOK 152 million with a gross margin of 49%
including a contingency release for Kenhardt. The underlying gross margin for
the new projects under construction was 9%.
"In recent months, we finalised the largest construction programme in Scatec's
history, and we celebrated the inauguration of our two largest plants to date:
Mendubim in Brazil and Kenhardt in South Africa. We have commenced commercial
operations at our solar plant in Pakistan and marked the official ceremony for
the Mmadinare solar complex in Botswana. It fills me with immense pride to have
been part of these milestones, witnessing firsthand how these projects drive the
green transition and bring positive change to local communities and individuals'
lives," says Scatec CEO Terje Pilskog.
Maturing the pipeline is a priority for Scatec and we continue to seek value
accretive opportunities in our markets to drive further growth. Some 93% of the
pipeline is in our focus markets, and 5 GW is related to South Africa, where
Scatec sees significant opportunities going forward. During the quarter Scatec
launched the Lyra Energy platform in South Africa, with renowned local partners
Stanlib and Standard Bank. Lyra is a platform that offers access to affordable
and predictable utility-scale renewable energy to medium and large commercial
and industrial (C&I) players, strengthening our position in South Africa. Last
week, Scatec also signed a 10-year power purchase agreement with Statkraft in
Brazil, enabling us to move forward with a 142 MW solar project and convert it
into backlog.
The company extended its maturity profile through successful issuance of a NOK
1.75 billion 4-year senior unsecured green bond, with a subsequent buy-back of
EUR 136 million of outstanding bonds, and extensions of the USD 150 million
Green Term Loan and the USD 180 Revolving Credit Facility - all at attractive
rates.
"2024 is off to a good start with EBITDA growth in the Power Production segment,
new projects entering construction and pipeline and backlog projects maturing.
We are committed to our self-funded, disciplined growth plan and I would like to
thank our team for the fantastic achievements we have celebrated this quarter,"
concludes Pilskog.
First-quarter consolidated revenues and other income were NOK 1.28 billion (919
million), EBITDA NOK 1.02 billion (629 million) and the net loss was NOK 26
million (-98 million).
Outlook
The full year 2024 proportionate power production estimate is 4.2 - 4.6 TWh with
a proportionate EBITDA estimate of NOK 3.75 - 4.05 billion, an increase of NOK
350 million. The increase is explained by, actual first quarter performance,
currency exchange rates as per the end of first quarter 2024, and inclusion of
the Services segment. The estimate reflects a normalisation to P50 production in
the second half of 2024 in the Philippines from the ongoing El Niño phenomenon.
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 Q1 2024
(https://channel.royalcast.com/hegnarmedia/#!/hegnarmedia/20240430_4)
For further information, please contact:
For analysts and investors: Andreas Austrell, VP IR, phone:
+47 974 38 686, [email protected]
(mailto:[email protected])For media: Meera Bhatia, SVP
External Affairs & Communications, phone:
+47 468 44 959, [email protected] (mailto:[email protected])
About Scatec
Scatec is a leading renewable energy solutions provider, accelerating access to
reliable and affordable clean energy 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
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