Scatec Solar’s revenue rise in Q2 on growing power production business

Norwegian independent power producer and solar project developer Scatec Solar ASA saw its revenue grow significantly in the second quarter of this year, as a result of an increase in turnover from solar power production.

The company’s revenue for the period came in at 279 million NOK ($34.6 million), up from 213 million NOK in the same quarter a year earlier. Ebidta and Ebit for the second quarter of this year were 217 million NOK and 151 million NOK, respectively. This result represents a considerable improvement as it compares to 153 million NOK and 93 million NOK in the second quarter of last year. Meanwhile, net profit dropped year-on-year from 6 million NOK to 1 million NOK.

Scatec’s power production business comes from its operational PV assets that currently have a combined capacity of 322 MW, the same amount it had at the end of the first quarter. The company said that increase in revenue for the segment, which account for almost total quarterly turnover, as well as increased operating profitability year-on-year were mainly due to additional production from the new plants in Jordan and a strengthening of currency in South Africa, where it has 480 MW of operational PV capacity.

The O&M segment, which has currently around 289 MW under maintenance, achieved revenue of 20 million NOK in the second quarter, up from 15.8 million NOK a year earlier. The Development and Construction segment, instead, registered no revenue during the quarter, although it is “preparing for financial close of backlog projects and development of pipeline and new opportunities,” the company highlighted.

Scatec’s project backlog rose from 1,131 MW in the second quarter of 2016 to 1,143 in the latest quarter. Project pipeline, on the other hand, remained flat at 745 MW.

The operational PV plants are located in South Africa (190 MW), Czech Republic (20 MW), Rwanda (8.5 MW), Jordan (43 MW) and Honduras (60 MW). Project backlog is represented by PV projects in Egypt (400 MW), South Africa (480 MW), Malaysia (190 MW), Brazil (150 MW), Honduras (153 MW), Mozambique (40 MW), and Mali (33 MW).

The projects of the 745 MW pipeline will be developed in South Africa (430 MW), Pakistan (150 MW), Nigeria (100 MW), Kenya (48 MW), and Burkina Faso (17 MW).

Scatec said it has recently identified opportunities for the development of a further 200 MW, as a result of dedicated market efforts in new geographies. Overall, project opportunities had reached a total of 2,155 MW in Americas, Africa and Asia as of the end of June.

Looking forward, the company reiterated its statement released at the end of the first quarter of 2017. Scatec said it is targeting to have between 1.3 GW and 1.5 GW of PV operational projects or under construction by the end of 2018, while power production is expected to reach 630 GWh compared to 791 GWh in 2017.