In the first quarter 2023, Scatec’s proportionate revenues rose to NOK 2,706 million (809), with a 92 percent increase in EBITDA to NOK 765 million compared to the first quarter last year. Power production was 887 GWh (868) and the proportionate power production EBITDA rose by 40 percent to NOK 686 million (490), mainly driven by the Philippines.
“We are pleased with a solid start to the year, driven by strong operational and financial performance. Scatec delivered high power production availability in the quarter and without any injuries. We also report solid progression and strong margins of 11 percent for our projects under construction in South Africa, Brazil, and Pakistan. We will continue to deliver on our strategy with a focused and disciplined approach providing renewables projects with attractive returns. The world is facing a climate crisis and Scatec is ready to drive the clean energy transition forward by building out renewable energy in our focus markets,” says Scatec CEO Terje Pilskog.
Power Production and Development & Construction
Proportionate revenues in the Power Production segment increased by NOK 154 million to NOK 882 million compared to the same quarter last year, as a result of improved hydrology in the Philippines, high payment level in Ukraine, higher irradiation in South Africa and currency effects.
Development and construction revenues reached NOK 1,728 million in the first quarter, with a gross margin of 11 percent generated from projects under construction in South Africa, Brazil, and Pakistan. In the quarter Scatec recognised an impairment charge of NOK 44 million related to pipeline projects in Oman and in Brazil.
Consolidated profit and loss
Consolidated revenues for the first quarter were NOK 919 million (759), with an EBITDA of NOK 629 million (433), mainly explained by higher revenues from Ukraine, higher irradiation in South Africa and foreign currency effects.
EBIT was NOK 353 million (-716) in the quarter following ordinary depreciations and a NOK 44 million impairment charge. The net loss was NOK 98 million (-1,062) after net financial expenses of NOK 350 million (295), mainly consisting of interest expenses of NOK 413 million (310) and unrealised currency gains of NOK 81 million (30), and a tax expense of NOK 100 million (50).
Refinancing, portfolio optimisation and growth
During the quarter and as previously communicated, Scatec signed an agreement to sell the Upington solar plants in South Africa for a gross contribution of NOK 569 million. The transaction is expected to be completed in the second quarter of 2023. The company also refinanced the USD 193 million Bridge-to-Bond facility related to the acquisition of SN Power, with a new USD 100 million green term loan provided by Scatec’s corporate banks and a new NOK 1,000 million green bond.
The full year 2023 EBITDA estimate has increased by NOK 150 million from NOK 2.7 – 3.0 billion to NOK 2.85 – 3.15 billion, reflecting actual first quarter performance, estimated second quarter performance and currency exchange rates as per the end of the first quarter 2023.