Scatec Solar releases solid 2016 financial results

Norwegian independent power producer Scatec Solar reports that it was able to increase revenue and operating profits, as well as its project backlog in 2016.

The company achieved turnover of 1,085 million NOK ($127.2 million) last year, a considerable increase from NOK 881 million ($103.2 million) in 2015.

Of this turnover, NOK 1,011 million came from the Power Production segment, while O&M achieved revenue of NOK 62 million. Revenues in the Development & Construction (D&C) segment amounted to NOK 604 million.

Ebidta improved year-on-year from NOK 698 million to NOK 833 million. Ebit also grew from NOK 523 million in 2015 to NOK 563 million last year. Net profit, however, declined from NOK 136 million to NOK 70 million.

Power production increased around 70%, from 466 GWh in 2015 to 791 GWh last year. This increase was mainly due to the full year production of the 60 MW Agua Fria plant in Honduras and the 104 MW Red Hills plant in the United States, and to the completion of three PV plants totaling 43 MW in Jordan.

At the end of 2016, the company had 12 operational solar power plants, with a combined capacity of 321.5 MW. These plants are located in South Africa (190 MW), Czech Republic (20 MW), Rwanda (8.5 MW), Jordan (43 MW) and Honduras (60 MW).

Scatec Solar said it expects to install between 1.3 GW and 1.5 GW of new PV capacity by the end of 2018. Its project backlog increased by 309 MW to 731 MW in 2016. The backlog’s projects will be located in South Africa (258 MW), Malaysia (197 MW), Brazil (150 MW), Honduras (53 MW), Mozambique (40 MW), and Mali (33 MW).

Total revenue from this backlog is expected to reach NOK 1.2 billion (US$ 140.3 million) based on the 20-25-year PPAs the company secured for the projects.

Currently, Scatec Solar has a PV project pipeline of 1,085 MW. A further 2,008 MW, the company said, consists of project opportunities with verified feasibility and business cases.

The projects of the 1 GW pipeline will be developed in South Africa (430 MW), Egypt (340 MW), Pakistan (150 MW), Nigeria (100 MW), Kenya (48 MW), and Burkina Faso (17 MW).

Looking forward, Scatec expects a reduction in power production in 2017, due to the sale of the plant in Utah, United States, at the end of 2016. This reduction, however, will be partly offset by a full year of production at the Jordan plants, Scatec stressed.

Furthermore, cash flow to equity from Power Production and Operation & Maintenance is expected to reach between NOK 170 million and 190 million in 2017, although Scatec did not release any further informaton on these figures.