Scatec Solar sales skyrocket in third quarter

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Norway’s Scatec Solar saw strong growth in the third quarter, generating NOK 100 million more in sales than in the same period last year and drastically reducing its loss.

The company on Thursday posted revenue of NOK 130.2 million ($19 million), up from NOK 31.1 million a year ago. At the same time, Scatec slashed its third-quarter loss from last year’s NOK 29.9 million down to NOK 7.4 million. The company achieved an operating profit (before interest and tax) of NOK 51.4 million, up from a NOK 23.6 million loss a year ago.

Scatec said consolidated net profit adjusted for the costs of its recent initial public offering and share-based payments would be at NOK 21 million, with a net NOK 8 million for Scatec. The company raised NOK 500 million from the IPO on its first day of trading on October 2.

The company nearly doubled its installed production capacity to 220 MW following the grid connection of three solar power plants in South Africa and Rwanda, which drove the strong increase in revenue and profit, Scatec said. In addition, the group generates revenue and profit from the sale of electricity from solar power plants it owns in South Africa, the Czech Republic and Rwanda.

Scatec CEO Raymond Carlsen said the company had completed three solar plants in recent months, including the 40 MW Linde and 75 MW Druenberg projects in South Africa and the 9 MW ASYV solar power plant in Rwanda. “Together with our existing assets, these plants will generate solid cashflows over the next 20 years,” Carlsen said. He added that the company was on track to close financing for several new projects in Jordan, the United States and Honduras. “With construction of these power plants we will double gross installed capacity to 433 MW by the end of 2015."

Following recent addition of a 59 MW project in Honduras, Scatec now holds a project backlog of 214 MW, up by 92 MW from the previous quarter. In addition, a project pipeline of nearly 700 MW is under development.

The company’s global pipeline includes four projects in the United Kingdom totaling 38 MW and three projects in South Africa of 86 MW each that Scatec has submitted to the fourth award round under the country’s Renewable Independent Power Produce Programme (REIPPP). In addition, Scatec has pipeline projects across Namibia, Burkina Faso, Ghana, Mali and the Ivory Coast.

The group described its pipeline in the United States as stable since second quarter and said it was working to secure off-take agreements for the projects.

Commenting on the Japanese market, Scatec said it was facing “some uncertainty” by the introduction of the utility moratorium on renewable energy in six out of 10 utility regions.

Scatec said it was working with its partners to assess the situation and the potential impact this would have on our pipeline in Japan.

The company is aiming to increase its solar power producing assets to 750 MW by the end of 2016.