Scatec's consolidated net profit soars in Q3

Norwegian renewable power producer Scatec ASA (OSL:SCATC) saw its consolidated net profit surge to NOK 1.65 billion (USD 150m/EUR 138m) in the third quarter, mostly fuelled by the increased revenue contribution from power production business.

The bottom line result compares with a loss of NOK 33 million in the preceding quarter and a profit of NOK 95 million a year back, Scatec’s financial report showed on Thursday.

The Norwegian group booked third-quarter earnings before interest, tax, depreciation and amortisation (EBITDA) of NOK 2.66 billion, rising from NOK 686 million a year before, while revenues and other income tripled to NOK 2.97 billion from NOK 947 million.

On a proportionate basis, revenues came at NOK 2.42 billion, up from NOK 2.37 billion. More than half of the total was generated by the company’s power production activities, which brought NOK 1.77 billion in revenues and boosted its year-ago contribution from NOK 1.04 billion after Scatec brought new plants into operation. Its facilities generated 1,254 GWh in the quarter, up from 1,047 GWh in the third quarter of 2023.

Proportionate revenues from Development & Construction (D&C), meanwhile, slipped to NOK 631 million from NOK 1.32 billion.

“This quarter we are reporting strong financials and solid progress on strategic initiatives, highlighting our robust operational capabilities and disciplined approach to growth,” said CEO Terje Pilskog. He noted that the company is working on its plan to divest assets in non-core markets and recycle capital into new attractive investments in the renewable energy field.

Looking ahead, Scatec lifted its proportionate EBITDA forecast by NOK 350 million to NOK 4.15 billion-4.35 billion and trimmed its proportionate power production expectations to 4.2 TWh-4.3 TWh. It also unveiled a goal for NOK 750 million in equity investments annually until 2027, with plans to invest most of the capital in solar and battery projects in South Africa, Egypt, Brazil and the Philippines.

(NOK 10 = USD 0.909/EUR 0.836)

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