Scatec's Q2 Results: EUR 2.8m Net Loss, Rising EBITDA

Energy Box
Aug 19, 2024
2 min read

Norwegian renewable power producer Scatec ASA on Friday reported a net loss of NOK 33 million (USD 3.1m/EUR 2.8m) for the second quarter of 2024, compared to a NOK-402-million profit a year ago, including a significant increase in net financial expenses.

Earnings before interest, tax, depreciation and amortisation (EBITDA) climbed to NOK 930 million from NOK 904 million, while revenues moved up to NOK 1.09 billion from NOK 848 million, aided by new projects in operation and higher payment levels in Ukraine.

Proportionate revenues came in at NOK 1.53 billion, compared with NOK 5.78 billion a year ago.

Power production revenues declined NOK 1.05 billion from NOK 1.18 billion but this reflects a gain in the year-ago quarter. Power production performance was driven by new plants in operation in South Africa, Brazil and Pakistan and recognition of reserve market revenues in the Philippines, the company said. Its power plants generated 995 GWh in the quarter, up from 873 GWh a year ago on a proportionate basis.

Development & Construction (D&C) delivered NOK 470 million of revenues, well below the year-ago quarter when there was high construction activity.

CEO Terje Pilskog said Scatec’s self-funded growth plan is progressing well, noting that EBITDA from power production was NOK 873 million, a 38% increase year-on-year, adjusted for divestments. “Our projects under construction in South Africa and Botswana are progressing according to plan, generating a gross margin of 10%, while we recognised an EBITDA of NOK 112 million in the D&C segment as a whole, representing a 24% EBITDA margin,” the CEO added.

For the first half of the year, the company recorded a net loss of NOK 59 million, versus a NOK-304-million profit in the first half of 2023.

Scatec kept its full-year proportionate EBITDA estimate of NOK 3.75 billion-4.05 billion. To reflect the second-quarter performance, the full year proportionate power production guidance was reduced by 100 GWh to 4,100-4,500 GWh.