In the third quarter, Scatec continued to progress on its strategy, reinforcing its position as a leading provider of renewable energy in high-growth markets. Proportionate revenues increased by 22% to NOK 2,953 million (2,416 million), and EBITDA came in at NOK 1,063 million (1,520 million), with the third quarter last year affected by divestments gains and a catch-up payment in the Philippines.
Power production revenues were NOK 1,178 million (1,772 million) and EBITDA NOK 955 million (1,540 million). The change is mainly driven by recognition of a NOK 383 million divestment in South Africa and a NOK 60 million catch-up payment in the Philippines in the third quarter last year. Total power production from Scatec’s power plants ended at 1,202 GWh (1,254 GWh).
The Development & Construction (D&C) segment reported revenues of NOK 1,760 million (631 million) from construction projects in Egypt, the Philippines, Brazil, Botswana, South Africa, and Tunisia. Gross margin remained at the high end of the guided range, at 11.4%.
'I am very pleased with the progress in the quarter. Our construction activities are on schedule with good margins, and we continue to add attractive new projects to our backlog. In parallel, we have repaid approximately one billion of our corporate debt while increasing our liquidity position,' says CEO Terje Pilskog.
In the Philippines, Scatec added two additional Battery Energy Storage System (BESS) projects of 80 MW / 80 MWh to the backlog. The BESS facilities will be added to the existing hydropower plants in Binga and Ambuklao, in line with Scatec’s strategy to capitalise on the ancillary services market. The backlog now stands at an all-time high of 3,392 MW.
Scatec continued to reduce corporate debt and repaid NOK 943 million in the quarter, through repayment of a USD 85 million term loan and ordinary amortisations. This is in line with the long-term deleveraging strategy to improve financial flexibility. Gross corporate debt has now been reduced by ~27% to NOK 6.7 billion since the target was launched twelve months ago. Corporate net interest bearing debt is reduced to NOK 4.3 billion, also positively affected by strong cash generation in the quarter.
Third quarter consolidated revenues and other income were NOK 1,080 million (2,967 million), EBITDA was NOK 785 million (2,659 million), and net profit was NOK 5 million (1,646 million). In the third quarter last year Scatec recognised NOK 1,491 million in net gain from sales of assets on consolidated basis.
Outlook
- Full year 2025 proportionate power production of 4.1 - 4.2 TWh
- Full year 2025 proportionate EBITDA estimate is increased by NOK 50 million to a midpoint of NOK 4.35 billion
- Remaining D&C contract value of NOK 4.1 billion for projects under construction
- Estimated 10 - 12% gross margin for projects under construction
Strategic roadmap towards 2030
Scatec’s self-funded growth strategy is yielding tangible results, with solid progress on growth, deleveraging, and capital discipline over the past two years. Building on this momentum, the company is refining its roadmap with increased targets for the strategic period 2026-2030.
- Target NOK 1 billion of average annual equity investments in value accretive growth
- Reduce corporate interest-bearing debt to NOK 4 billion
- Realise at least NOK 3.4 billion from divestment of assets and farm-downs
- Maintain self-funding through operating cash flow, robust D&C margins under a capital-light model, divestment proceeds, and NOK 4.7 billion in available liquidity
- Focus on Solar PV and BESS, both stand-alone and hybrid solutions, while building a wind portfolio over time
- Concentrating development activities on attractive growth markets, while divesting power plants in markets with limited growth potential.
'We are ahead of our 2027 strategic targets and are now sharpening our roadmap towards 2030. By combining profitable growth, deleveraging and active portfolio management, we are positioning Scatec to create long-term value and lead the renewable transition in our markets,' says CEO Terje Pilskog.
About Scatec
Scatec is a leading renewable energy solutions provider, accelerating access to reliable and affordable clean energy in emerging markets. As a long-term player, we develop, build, own, and operate renewable energy plants, with 6.2 GW in operation and under construction across five continents today. We are committed to grow our renewable energy capacity, delivered by our passionate employees and partners who are driven by a common vision of ‘Improving our Future’. Scatec is headquartered in Oslo, Norway and listed on the Oslo Stock Exchange under the ticker symbol ‘SCATC’. To learn more, visit www.scatec.com or connect with us on LinkedIn.
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Source: Scatec
