Scatec (SCATC) Q3 2024 earnings summary

Executive summary

• Achieved strong Q3 financial results with proportionate revenues of NOK 2.4 billion and EBITDA of NOK 1.5 billion, driven by asset divestments and robust operational performance in core markets.

• Power production increased 24% year-over-year to 1,254 GWh, with significant contributions from new projects in South Africa, Brazil, Pakistan, and the Philippines.

• Advanced strategic focus on solar and BESS in four core markets, with divestments of non-core assets to fund growth and portfolio optimization.

• Secured major growth milestones, including financial close in Tunisia, a 1.1 GW solar and 200 MWh battery PPA in Egypt, and significant asset sales in Africa and Vietnam.

• Asset rotation and a self-funded growth strategy are central, targeting NOK 4 billion in divestment proceeds by 2027, with 75% allocated to debt repayment.

Financial highlights

• Proportionate revenues reached NOK 2,416 million (Q3 2023: NOK 2,371 million); EBITDA NOK 1,520 million (Q3 2023: NOK 893 million); EBIT NOK 1,129 million (Q3 2023: NOK 584 million).

• Power production: 1,254 GWh (Q3 2023: 1,047 GWh); consolidated revenues: NOK 1,161 million (Q3 2023: NOK 804 million); net profit: NOK 1,646 million (Q3 2023: NOK 95 million).

• Net gain from sale of project assets: NOK 1,491 million, mainly from partial sale of South African solar plants.

• Net interest-bearing debt at NOK 22.1 billion; free liquidity of NOK 2.2 billion including undrawn credit facilities.

• D&C segment reported NOK 631 million in revenues with a 12% gross margin, above guidance.

Outlook and guidance

• Full-year 2024 power production guidance: 4,200–4,300 GWh; Q4 estimate: 1,100–1,200 GWh.

• Full-year EBITDA guidance raised by NOK 350 million to a midpoint of NOK 4.25 billion, reflecting divestment gains and strong performance in the Philippines and Ukraine.

• D&C gross margin guidance increased to 10–12% for projects under construction and in backlog.

• Majority of NOK 3.4 billion in remaining D&C contract value expected in 2024–2025.

• Corporate 2024 EBITDA expected between NOK -120 million and NOK -130 million.