In a record breaking year for solar around the globe, Scatec Solar took advantage of the market boom, by ramping up its power production and project pipeline. The financial results that it has posted for the fourth quarter of 2016 show that the company is in a healthy positive, and it growing nicely.
Jumping straight into the figures, Scatec posted revenues of NOK 363 million (US$43.6 million) for the quarter, which is both a yearly and a sequential growth, from NOK 267 million in Q4 2015 and NOK 281 million in Q3 2016. This revenue growth was a mainstay of the entire year, with overall yearly revenues of NOK 1,085 million (US$130.4 million) up from NOK 881 million (US$105.9 million) in 2015.
Incredibly, almost 60% of the quarterly revenue makes up the company’s EBIT for the quarter, which was NOK 210 million, up from NOK 163 million in Q4 2015 and up from NOK 154 million in the previous quarter, proving how profitable the company is. For the entire year, Scatec posted an EBIT of NOK 563 million (US$67.6 million), up from NOK 523 million (US$62.8 million) in 2015.
Getting into the nuts and bolts of the company, over the course of the fourth quarter its power production reached 204 GWh, which is a 35% increase from the fourth quarter of 2015 when it produced 152 GWh, but down from Q3 2016 when its power production reached 222 GWh. The company has blamed this sequential drop on seasonally lower production in the U.S. and Jordan.
Over to the company’s project pipeline, 309 MW was added to the company’s project backlog in Q4 2016, bringing the total project backlog to 731 MW, while Scatec has a project portfolio of 322 MW, and an over project pipeline with a combined capacity of 1,085 MW.
“2016 has been another good year for Scatec Solar,” commented Scatec Solar CEO Raymond Carlsen. “We have delivered stable operations, grid connections of new solar plants and further developed our project pipeline and backlog. We continue to see attractive market opportunities globally and with a backlog of 731 MW we are looking forward to busy times ahead.”
Although Carlsen spoke of busy times ahead, the company has predicted that total power production for 2017 is actually likely to drop to 640 GWh, down from 791 GWh in 2016. However, it does expect to have a project pipeline of 1,300-1,500 MW in operation and/or under construction by the end of 2018.