A frontrunner in renewable energy
Scatec is a leading renewable energy solutions provider, accelerating access to reliable and affordable clean energy in high growth markets. As a long-term player, we develop, build, own and operate renewable energy plants, with 4.3 GW in operation and under construction across four continents today.
We are committed to grow our renewable energy capacity, delivered by our passionate employees and partners who are driven by a common vision of ‘Improving our Future’.
Executing the strategic vision:
Building a resilient long-term growth platform
It has been eighteen months since I assumed leadership of Scatec, an exciting company, spearheaded by a dedicated team of enthusiastic ‘changemakers,’ who consistently deliver remarkable results with unwavering focus and passion.
In the past 12 months, Scatec has achieved its highest construction activity ever, launched innovative hybrid projects in South Africa and Cameroon (Release) that set new industry standards, realized a project based on a corporate PPA in Brazil and built a battery storage project in the Philippines. In addition, we focused our activities by streamlining projects under development, divesting assets to recycle capital, and reducing operational costs. These achievements underscore our commitment to our strategy, driving sustainable solutions and shaping the future of renewable energy.
During the past year, we have also seen a significant change in the macroeconomic environment. The dramatic increase in interest rates has led to increased cost of capital, impacting both availability of attractive funding, project returns for selected growth prospects and increasing interest rate expenses on the corporate debt of Scatec.
Our response is to align our growth rate to internal funding capacity. We adjust our growth ambition to NOK 500 – 750 million of gross equity investments annually, in line with our historical growth pace. At this growth rate we will not raise new equity. Investing with discipline, we will be utilising our integrated business model and stay committed to delivering attractive returns of 1.2 times cost of equity, D&C gross margins of 8-10% and O&M margins of 25-30%.
We have a strong and growing cash flow from our operating asset base and we will increase our focus on capital recycling. In addition, the Board of Directors have approved to change the dividend policy to no dividend. We are also comfortable with servicing our corporate debt and we have strong support from our relationship banks. We are currently amortising our corporate debt with approximately NOK 280 million annually and we also consider additional debt repayments.
These strategic actions will enable us to navigate the current macro-economic landscape, preserving our shareholders’ value and reinforcing our commitment to disciplined growth, financial flexibility, and stability. Despite high interest rates, renewable energy is still competitive in emerging markets and the value creation potential in our pipeline is significant.
Looking ahead, I am confident in our ability to capitalise on the profound global shift towards cleaner energy. Our dedication to renewable energy, our track record over the past 15 years, coupled with our sound financial standing, equips us to lead the charge in transforming the energy landscape.
I would like to express my gratitude to our people, partners and shareholders, whose unwavering support drives our pursuit of excellence. Together, we are pioneering a sustainable future, one where clean energy powers the world.
Company introduction video
Our culture shall be driven by values, performance and competence.
We have identified four core corporate values to help define our culture and govern our business activities:
- Driving results
- Working together
In a rapidly changing market environment, predictability is an important feature of a business relationship. We see it as our task to deliver on our promises and meet the expectations placed on us. For this, we use our know-how and experience. Consistent performance and reliability finally leads to confidence.
Predictable means that we…
- deliver on commitments
- communicate in an open and precise way
- bring up ethical issues and challenges immediately
Determination is vital to succeed in the renewable industry. Driving results are therefore a fundamental value in our corporate culture.
Driving results means that we…
- set ambitious targets
- show endurance, follow through and pay attention to important details
- strive simplicity and clarity, avoid activities not adding value
- continuously develop sound expertise, demonstrate commercial awareness and customer orientation
Curiosity and an open mind are important qualities for us. It is not necessary to reinvent the wheel – often it’s just a new combination of good ideas that enables a significant advantage. This requires the courage to venture into unknown territory and manage the emerging risks, an attitude we foster in Scatec.
As changemakers we…
- are curious and stimulate new ideas and creativity
- have the courage to challenge accepted truths and enter unfamiliar territory
- understand and manage risk
The whole is greater than the sum of its parts. Complex projects involve many people and various disciplines that require seamless cooperation.
Working together we…
- listen actively, give and accept constructive feedback
- always seek the most appropriate solutions, share our experiences and build on each other‘s contributions.
- respect the individual and encourage collaboration to continuously improve the working environment.
- have a “can do” attitude and strive to develop and energize our colleagues.