Scatec Reports 22% Growth In Power Generation, Raises 2030 Investment Targets To NOK 2 Billion

Scatec reported continued progress in its growth strategy during the third quarter of 2026, supported by higher power generation, new project developments and improved financial performance in its power production business. The Norwegian renewable energy company recorded proportionate revenues of NOK 2,267 million, compared with NOK 2,953 million in the corresponding quarter last year. Proportionate EBITDA increased to NOK 1,208 million from NOK 1,063 million.

The company’s power production segment reported revenues of NOK 1,301 million, compared with NOK 1,178 million in the third quarter of 2025. EBITDA from the segment increased to NOK 1,070 million from NOK 955 million. The improvement was supported by new power plants entering commercial operations. Total proportionate power generation reached 1,469 GWh, representing a 22% increase from 1,202 GWh recorded in the same period last year.

Scatec’s Development and Construction (D&C) segment recorded revenues of NOK 948 million, compared with NOK 1,760 million a year earlier. EBITDA increased to NOK 168 million from NOK 135 million. The company said the previous year’s revenue was primarily supported by high construction activity on the Obelisk project. This quarter’s EBITDA margin benefited from NOK 140 million in project close-out effects, including a NOK 100 million contingency release. Total contingency releases during 2026 have reached NOK 340 million.

During the quarter, Scatec started construction of two major projects. These include the 900 MW Shadwan onshore wind project in Egypt and the first phase of the Dandara project, comprising 569 MW of solar capacity and 100 MWh of battery energy storage. The company also signed a renewable energy investment platform with the European Bank for Reconstruction and Development (EBRD), securing a commitment of up to USD 221 million for projects in Egypt.

Its remaining D&C contract value increased by NOK 6.7 billion to NOK 10.5 billion. Scatec also secured USD 150 million in equity bridge loans for the Energy Valley and Shadwan projects. Additionally, it successfully placed a NOK 1.5 billion bond at three-month NIBOR plus 250 basis points, refinancing its 2023 bond at improved terms.

However, the company recognised impairments of NOK 1,150 million on a consolidated basis, primarily related to assets in Ukraine and Pakistan. The adjustments reflect increased cash flow uncertainties, country risk premiums and higher long-term interest rates. Consolidated revenue and other income stood at NOK 1,677 million, while EBITDA reached NOK 1,135 million. The company reported a net loss of NOK 1,135 million, compared with a net profit of NOK 5 million in the corresponding quarter last year.

For FY2026, Scatec expects power production of 4.95–5.15 TWh. Its proportionate power production EBITDA outlook was reduced by NOK 300 million to NOK 3,300–3,600 million, partly reflecting the suspension of the reserves market in the Philippines.

Looking ahead, Scatec has strengthened its 2027–2030 strategic roadmap, targeting average annual equity investments of NOK 2 billion and annual cash flow to equity exceeding NOK 2.5 billion by 2030. The company also aims to reduce corporate interest-bearing debt to NOK 4 billion and generate at least NOK 3.4 billion through asset divestments and farm-downs. Its growth strategy will focus on solar PV, battery energy storage systems and onshore wind projects, supported by operating cash flows, construction contributions and disciplined capital allocation.