Scatec announces a NOK 100 billion business plan towards 2025

23 March 2021: At its Capital Markets Update today, renewable company Scatec confirms its current 4.5 GW capacity target for 2021 and raises its target to 15 GW by end of 2025. The business plan is supported by Scatec’s track record of strong growth and a solid project pipeline across solar, wind, hydro and storage in high-growth markets globally.

12 GW of new capacity, from current 3.3 GW, will require NOK 100 billion in investments according to company estimates, of which NOK 15-20 billion will be funded by Scatec equity. Solid long term cash flows from operating power plants and margins from development and construction of new plants are expected to fund a major part of Scatec’s equity investments.

“From the very first day, Scatec has been a frontrunner in an increasingly dynamic renewables market, and we continue to lead. In line with our broadened strategy, we are developing renewable energy solutions and combining solar, wind, hydropower and storage to the benefit of our growing customer base of state utilities and large energy consumers,” says Raymond Carlsen, Scatec’s CEO.

Since its previous Capital Markets Update in 2019, Scatec has taken major steps to broaden its business development activities to build a global leader in renewables. The project development footprint has been expanded to 35 countries, and the backlog and pipeline of projects have increased from 4.2 GW to 11.9 GW over the past two years. In 2020, the company acquired leading hydropower player SN Power, a transaction adding both scale and significant cash flow.

“Scatec is a pure renewable player. Our business model will continue to be based exclusively on delivery of reliable renewable energy. Our competence and track record across renewable technologies and in key growth regions paired with our integrated business model and strong partnership focus, create lasting competitive advantages,” says Carlsen.

The company remains committed to its strong position in ESG, earning top ratings from leading agencies.

“Our ESG ambition is forming an important part of our company culture. A leading approach to sustainability and ESG is not only a requirement. It mitigates risk, creates market opportunities and a competitive advantage,” says Carlsen.

Scatec intends to pay consistent and growing dividends to its shareholders. Dividends will grow with increased long term cash flow, and the company will from 2021 adjust its dividend policy to pay out a minimum of 25 % of the cash distributions received from our operating power plants.

Scatec’s robust and diversified assets portfolio creates a solid platform for growth in the years to come. Scatec and SN Power delivered a combined 2020 EBITDA of NOK 2.5 billion and power production of 3,045 GWh. For the full year 2021, the total proportionate power production volume is estimated to 3,500-3,700 GWh, up 20% from 2020. In the first quarter 2021, Scatec is expecting to report proportionate EBITDA in the Power Production segment of NOK 660 – 680 million.

Webcast and presentations
Webcast replay available at this link.

Introduction: Raymond Carlsen, CEO
Solar & wind: Terje Pilskog, EVP Project Solar & Wind Development
Hydropower: Jarl Kosberg, EVP Project Hydropower Development
Hybrid solutions: Terje Pilskog, EVP Project Solar & Wind Development and team members
ESG – a competitive advantage: Julie Hamre, Senior Sustainability Manager & Roar Haugland, EVP HSSE & Sustainable Business
Financials: Mikkel Tørud, CFO
Financial information CMU 2021 (excel spread sheet)

Download pdf with complete material from CMU 2021

For further information, please contact:
Mikkel Tørud, CFO, tel: +47 976 99 144,
Ingrid Aarsnes, VP Communication & IR, tel: +47 950 38 364,