A year of delivering on strategy, record construction activity at attractive margins in 2023

Oslo, 26 January 2024: In the fourth quarter, Scatec reported proportionate revenues of NOK 1.7 billion (1.8), with an EBITDA of NOK 808 million (786). In the development and construction segment, we delivered revenues of NOK 532 million (627) with a gross margin of 15 percent.

For the year we reported all-time high proportionate revenues of NOK 12.7 billion (5.1) and EBITDA of NOK 3.8 billion (2.6), driven by high construction activity.

“Throughout 2023 we delivered on our strategy, and I am proud of the achievements by our global team. EBITDA from our operating assets reached NOK 3.2 billion and we generated 3.6 TWh of clean energy with no lost time incidents, while our power plants helped to avoid 3.9 million tonnes of greenhouse gas emissions,” says Scatec CEO Terje Pilskog.

In the fourth quarter 2023 Scatec generated proportionate Power Production of 811 GWh (979) with revenues of NOK 1,034 million (1,032) and EBITDA of NOK 793 million (821).

“The year was also characterised by the largest construction programme in Scatec’s history. We crossed the finish line for Kenhardt in South Africa, one of the world’s largest hybrid solar and battery storage plants and are close to completing our construction projects in Brazil and Pakistan. In total these projects have generated all-time high D&C revenues of 8.2 billion in 2023, with a solid average gross margin of 12 percent,” he adds.

During the year, Scatec has focused its efforts on optimising the company’s portfolio through consolidation of assets and capital recycling and secured NOK 2.7 billion of growth funding from strategic transactions. Scatec has divested four solar power plants across South Africa, Mozambique, Argentina, and Rwanda, and raised USD 202 million in debt and equity funding for Release to accelerate growth.

In January 2024, Scatec agreed refinancing terms with DNB, Nordea and Swedbank for its USD 150 million Green Term Loan, with new maturity in the fourth quarter 2027.

Furthermore, Scatec has laid the foundation for further growth in 2024. The company has started initial construction works for a 273 MW solar project (Grootfontein) in South Africa and a 60 MW solar plant (first phase) in Botswana. Scatec was also awarded a battery storage project of 103 MW in the first ever battery storage tender in South Africa.

Scatec’s strategy remains firm – to develop, build, own, and operate renewable energy, with a focus on growing renewables and optimising the portfolio. Scatec continues to see strong long-term demand for renewables and particularly attractive opportunities within solar as component prices are decreasing. Scatec continues to be committed to disciplined growth with attractive margins funded by internal capacity, while focusing on optimising the company’s portfolio.

“The outlook for renewables has continued to strengthen with significant price drops of both solar modules and batteries last year. The reductions are driven by significant scaling up of capacity, technology development and innovation. Renewables are more competitive than ever, which is especially the case in our focus markets,” concludes Pilskog.

Outlook
The full year 2024 proportionate power production estimate is 4.2 – 4.6 TWh with a proportionate EBITDA estimate of NOK 3.4 – 3.7 billion.

Additional information
Proportionate historical financial information on a country-by-country level is attached to the stock exchange notice.

A presentation of the results, followed by a Q&A session will be held at House of Oslo (the auditorium), Ruseløkkveien 34, 0251 Oslo, today at 09:00 am CET. You can also follow the presentation and Q&A session from our website, or this direct link: Scatec webcast Q4 2023.

For further information, please contact:
For analysts and investors: Andreas Austrell, VP IR, phone: +47 974 38 686, andreas.austrell@scatec.com
For media: Meera Bhatia, SVP Communications & Government Affairs, phone: +47 468 44 959, meera.bhatia@scatec.com

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