Scatec reports strong revenue and profit growth

Norwegian independent power producer and solar project developer Scatec Solar ASA saw its revenue and profits increase considerably in the third quarter of this year.

In the quarter, the company achieved a turnover of 922.0 million NOK ($115.9 million), significantly up from 208.9 million NOK in the same period a year earlier. Most of the quarterly revenue increase, Scatec stressed, was attributable to 385 million NOK of construction revenues in Honduras and Malaysia, and 375 million NOK of project development margin on a transaction it recently concluded with Norwegian oil producer Statoil in Brazil. The raise in turnover was also due to a 7% increase in power production, which reached 157 GWh.

The company’s net result swung from a loss of 14 million NOK in the third quarter of 2016 to a profit of 394 million NOK in the latest quarter. Operating result also improved year-on-year from 62.7 million NOK to 461.2 million NOK.

“Our strong financial results reflect the value that has been created over the last few quarters. The Statoil partnership in Brazil and the Malaysian transaction clearly demonstrate the strength of our project portfolio and business model. I am very proud of our organisation’s ability to deliver high value projects in new environments,” says Scatec Solar’s CEO, Raymond Carlsen.

At the end of the third quarter, the company’s operational PV plant portfolio had a combined capacity of 322 MW, the same amount it had at the end of the first quarter.

Scatec’s project backlog increased from 422 MW in the third quarter of 2016 to 749 MW in the latest quarter. Project pipeline, on the other hand, decreased year-on-year from 1,126 MW to 745 MW. At the end of the second quarter of this year, project backlog stood at 1,143 MW, while project pipeline was also 745 MW.

Scatec announced in early October it has closed financing on 197 MW in Malaysia. A few days earlier, the company had closed a deal with Statoil for the sale of 40% of its 162 MW solar project in Brazil.