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.