Scatec (SCATC) Q4 2023 earnings summary

Executive summary

• FY 2023 proportionate revenue reached NOK 12,714m and EBITDA NOK 3,845m; D&C delivered record revenue of NOK 8,177m at a 12% gross margin.

• Construction activity increased capacity by 40%; Q4 milestones included Kenhardt entering commercial operation and divestments in Mozambique and Rwanda.

• Strategy focused on solar, wind and batteries in core markets, with annual gross equity investments of NOK 500–750m through 2027.

Financial highlights

• Q4 proportionate revenue was NOK 1.7bn and EBITDA NOK 808m; Power Production contributed NOK 1.0bn revenue and NOK 793m EBITDA.

• FY consolidated revenue and other income were NOK 4,721m and EBITDA NOK 3,567m; net profit was NOK 1,122m and basic EPS NOK 3.95.

• Q4 consolidated revenue and other income reached NOK 1,624m, EBITDA NOK 1,348m, and net profit NOK 724m; basic EPS was NOK 2.80.

• FY consolidated power sales were NOK 3.4bn, up 13%; Q4 sales were NOK 906m, up 17%, driven by Ukraine.

• FY consolidated operating cash flow was NOK 3,825m; investing cash flow was negative NOK 8,216m and financing cash flow positive NOK 3,294m.

Outlook and guidance

• FY 2024 proportionate Power Production is estimated at 4,200–4,600 GWh and EBITDA NOK 3,400–3,700m; Q1 production estimate is 800–900 GWh.

• Q1'24 Philippines EBITDA estimate is NOK 10–70m; FY24 Services EBITDA is estimated at NOK 120–130m and Corporate EBITDA at negative NOK 120–130m.

• Remaining construction contracts were ~NOK 2.5bn at Q4-end; new D&C projects are expected to generate 8–10% gross margins.

• Strategy targets NOK 500–750m in annual gross equity investments through 2027, focused on PV, wind and BESS, with selective growth in green hydrogen and hydro.