Scatec solar reports significant growth in revenue, profits in full fiscal 2017

Norwegian independent power producer and solar project developer, Scatec Solar ASA has reported its turnover and profits increased considerably last year, despite a small drop in turnover and a minimal loss registered in the fourth quarter.

The company registered revenue of 1,492 million NOK ($193.3 million) in full fiscal year 2017, up from 1,085 million NOK a year earlier. Operating profit also grew considerably from 563 million NOK in 2016, to 993 million NOK last year. Meanwhile, net profit climbed year-on-year from 70 million NOK, to 438 million NOK ($56.7 million).

These strong results were achieved despite a weak fourth quarter, in which revenue reached 281 million NOK, down both from 655 million NOK in the previous quarter, and 363 million NOK in the fourth quarter of 2016.

As a consequence, the company incurred a net loss of 1 million NOK in the latest quarter, while in the same period last year, it reported a profit of 77 million NOK. Quarterly operating profit, however, was still positive at 148 million NOK, although it was down from 210 million NOK in the fourth quarter of 2016.

As for the fourth quarter’s performance, the company said it reflects the gain from the sale of the Utah Red Hills plant, registered in December 2016, while it attributed the strong growth for full fiscal 2017 to the sale of the Apodi project in Brazil for NOK 375 million in the third quarter, and to increased power production revenues from its Jordan plants.

At the end of the fourth quarter of last year, Scatec had 322 MW of PV projects in operation and 394 MW under construction, the same amount it had at the end of the previous quarter. Its project pipeline also remained unchanged at 745 MW, while the project backlog increased quarter-on-quarter, from 749 MW to 789 MW.

“Total annual revenues from the 1,183 MW under construction and in backlog is expected to reach NOK 1,700 million based on 20-25-year Power Purchase Agreements (PPAs),” said the company in its statement.

“We have closed financing for 800 MW of new solar plants in 2017 and this will expand the plants we have in operation significantly when completed. We continue to develop project opportunities globally through strong partnerships,” added Scatec Solar's CEO, Raymond Carlsen.

Looking forward, Scatec said it expects to have between 1.3 GW and 1.5 GW of PV projects in operation or under construction. Furthermore, it said power production is forecast to grow from 627 GW in 2017, to 635 GW this year.