Scatec Achieves 22% Revenue Growth In Q3 2025, Expands Global Renewable Pipeline To 3.4 GW And Reduces Corporate Debt By NOK 943 Million

In the third quarter of 2025, Scatec continued to strengthen its position as a leading renewable energy provider in high-growth markets, making steady progress on its strategic and financial goals. The company reported proportionate revenues of NOK 2,953 million, representing a 22% increase from NOK 2,416 million in the same quarter last year. EBITDA for the quarter stood at NOK 1,063 million, compared to NOK 1,520 million in the previous year, which had been positively impacted by divestment gains and a one-time payment from the Philippines.

Power production revenues totaled NOK 1,178 million, compared to NOK 1,772 million in the third quarter of 2024, while EBITDA for this segment was NOK 955 million, down from NOK 1,540 million last year. The year-on-year difference was mainly due to the recognition of a NOK 383 million divestment in South Africa and a NOK 60 million catch-up payment from the Philippines in the previous year. Despite these changes, Scatec’s total power production remained stable, reaching 1,202 GWh compared to 1,254 GWh in the same period last year.

The Development and Construction (D&C) segment showed remarkable growth during the quarter, with revenues increasing to NOK 1,760 million from NOK 631 million a year earlier. This strong performance was supported by ongoing construction projects across Egypt, the Philippines, Brazil, Botswana, South Africa, and Tunisia. The segment maintained a high gross margin of 11.4%, which remained at the upper end of Scatec’s guidance. Commenting on the company’s performance, CEO Terje Pilskog said that Scatec’s construction activities were progressing on schedule with strong margins, and that the company had repaid approximately one billion of its corporate debt while simultaneously improving its liquidity position.

In the Philippines, Scatec further strengthened its project pipeline by adding two new Battery Energy Storage System (BESS) projects with a combined capacity of 80 MW / 80 MWh. These facilities will be integrated with existing hydropower plants in Binga and Ambuklao, in line with the company’s strategy to capitalize on opportunities in the ancillary services market. Following these additions, Scatec’s total project backlog reached an all-time high of 3,392 MW.

Financial discipline remained a key priority for Scatec throughout the quarter. The company reduced its corporate debt by NOK 943 million, including the repayment of a USD 85 million term loan and regular amortizations. This move aligns with Scatec’s long-term deleveraging strategy aimed at enhancing financial flexibility. Since launching the initiative a year ago, Scatec has successfully lowered its gross corporate debt by around 27% to NOK 6.7 billion. Corporate net interest-bearing debt was also reduced to NOK 4.3 billion, supported by strong operational cash flow during the quarter.

For the third quarter, consolidated revenues and other income were reported at NOK 1,080 million, compared to NOK 2,967 million in the previous year. EBITDA was NOK 785 million, compared to NOK 2,659 million, while net profit amounted to NOK 5 million, down from NOK 1,646 million a year earlier. The previous year’s results had benefited from a NOK 1,491 million gain from asset sales.

Looking ahead, Scatec expects full-year 2025 proportionate power production to be between 4.1 and 4.2 TWh. The company has also raised its full-year proportionate EBITDA guidance by NOK 50 million, setting a new midpoint of NOK 4.35 billion. The remaining D&C contract value for ongoing projects stands at NOK 4.1 billion, with expected gross margins between 10 and 12 percent.

Scatec’s self-funded growth strategy continues to yield positive results, supported by disciplined financial management and a strong focus on operational efficiency. Building on this momentum, the company has refined its long-term roadmap for 2026–2030 with enhanced strategic targets. These include investing an average of NOK 1 billion annually in value-accretive projects, reducing corporate interest-bearing debt to NOK 4 billion, realizing at least NOK 3.4 billion from divestments and project farm-downs, and maintaining a self-funded model supported by operating cash flow, robust D&C margins, divestment proceeds, and NOK 4.7 billion in available liquidity.

Scatec’s future growth strategy will continue to prioritize Solar PV and Battery Energy Storage Systems (BESS), both as standalone and hybrid solutions, while gradually building its wind energy portfolio. The company also plans to focus its development activities in high-growth markets while divesting assets in regions with limited expansion opportunities.

According to CEO Terje Pilskog, Scatec has already surpassed its 2027 strategic targets and is now focused on sharpening its roadmap toward 2030. By combining profitable growth, debt reduction, and active portfolio management, the company aims to create long-term value and solidify its role as a leader in the global renewable energy transition.