Scatec off to a strong start in 2019 with solid financials and pipeline additions

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Norwegian solar developer Scatec Solar has reported solid operational performance and strong financial results for the fourth quarter of 2018.

The company said it had managed to finalize several key projects, boosting its production, while at the same time expanding its project pipeline to more than 4 GW. In the last quarter alone, 600 MW was added to the order book.

“The fourth quarter has been one of the most eventful quarters ever for Scatec Solar,” said CEO Raymond Carlsen. “We have grid connected new projects in Brazil and Malaysia, increasing our total installed capacity to 584 MW. We have also reached major milestones with financial close and start of construction for new solar plants in Argentina, Malaysia and Ukraine – as well as continued high construction activity across six countries – as we realize 1.1 GW of new capacity. Our record achievements in 2018 within several areas give us a solid basis to develop our business further in 2019 and beyond.”

As a result, Scatec’s Q4 revenues reached $194 million, up from $52 million a year earlier. In addition to increased construction and development activity, Scatec highlighted increased power revenues – up 9% year on year – due to more commercially operational projects, as a reason for its improved financials.

Board proposes dividend

Revenues for fiscal year 2018 climbed to $552 million – up from $196 million in 2017. The company also increased its EBITDA from $93 million in 2017 to $112 million.

With a 162 MW plant in Brazil and a 65 MW plant in Malaysia in commercial operation, the company’s development and construction revenues reached $171 million, and specific EBITDA of $24 million, resulting in a gross margin of 16%.

Scatec Solar’s board of directors have proposed a dividend of $0.11 per share after results reportedly exceeded previous guidance.

Operational expenditure on a big project pipeline and on operational growth rose. At the end of FY 2017, the company spent $29 million and that figure has climbed to $36 million. Surprisingly, despite the company’s growth and good financial position, its basic earnings per share figure fell from $0.39 in 2017 to $0.15.

In its outlook for 2019, Scatec foresees continued strong growth on the back of its pipeline. Power production had been 108 GWh in the final three months of the last fiscal year, with 140-160 GWh projected for the first three months of this year. For the full year, the company expects 575-625 GWh.