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.


For further information, please contact:
For analysts and investors: Andreas Austrell, VP IR, phone: +47 974 38 686, [email protected]
For media: Meera Bhatia, SVP External Affairs & Communications, phone: +47 468 44 959, [email protected]

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 or connect with us on LinkedIn.  

This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act

Attachments

• Scatec - second quarter and first half report 2024
• Scatec - second quarter presentation 2024
• Scatec - Q2 historical financial information 2024