Scatec (SCATC) Q2 2024 earnings summary

Executive summary

• Achieved strong financial results in Q2 2024, with proportionate revenues of NOK 1.5 billion and EBITDA of NOK 951 million, driven by increased power production, new plants, and significant project milestones in Tunisia, Egypt, and Brazil.

• Signed major agreements, including a 10-year PPA in Brazil, a 20-year ammonia offtake in Egypt, and a partnership for 120 MW solar projects in Tunisia.

• Completed strategic divestments in Africa and the Philippines, supporting growth, deleveraging, and financial flexibility.

• Recognized as the second most sustainable company in Norway and 99th globally by TIME magazine.

• Portfolio optimization and refinancing activities underpin a self-funded growth plan.

Financial highlights

• Proportionate revenues reached NOK 1.5 billion and EBITDA NOK 951 million in Q2 2024; Power Production EBITDA was NOK 873 million with an 84% margin.

• IFRS revenues increased to NOK 1,092 million; consolidated EBITDA was NOK 930 million.

• Net profit for the quarter was -NOK 33 million, mainly due to higher financial expenses and absence of one-off gains.

• Net interest-bearing debt stood at NOK 24,953 million at quarter end; liquidity at NOK 2,131 million including undrawn credit facilities.

• Power production increased 25% year-over-year to 995 GWh, adjusted for divestments.

Outlook and guidance

• Full-year 2024 power production guidance is 4,100–4,500 GWh; Q3 2024 estimate is 1,150–1,250 GWh.

• Full-year Power Production EBITDA estimate maintained at NOK 3,900 million; Q3 2024 Philippines EBITDA expected at NOK 280–380 million.

• D&C segment expected to deliver 8–10% gross margin for projects under construction; remaining contract value at NOK 2.6 billion.

• Corporate 2024 EBITDA guidance is NOK -120 to -130 million.