Scatec ASA: First quarter impacted by Ukraine
Oslo, 6 May 2022: In the first quarter 2022, Scatec's proportionate revenues
reached NOK 1,014 million (954) with an EBITDA of NOK 398 million (636). Power
production reached 868 GWh (854).
"Our first-quarter results were impacted by Russia's war in Ukraine, the
broader geopolitical uncertainty and seasonality in the Philippines. Moving
forward, we expect to bring our backlog into construction during this year and
we will continue to grow our pipeline in core markets for our traditional
renewable energy solutions. In addition, we will have a strong focus on further
developing our green ammonia and green hydrogen business," says Terje Pilskog,
CEO of Scatec.
"We will execute our growth strategy by applying focus and discipline in
everything we do, and I look forward to continuing developing our strong
position as a leader in renewable energy solutions," adds Pilskog.
Proportionate Power production
Power Production revenues continued to be the main contributor in the quarter,
with revenues of NOK 933 million (868) driven by increased production in solar
and wind, and an EBITDA of NOK 490 million (704), impacted by loss provisions in
Ukraine and hydrology variations in the Philippines.
Financial optimisation, green ammonia, and battery storage investment
During the quarter, Scatec announced the refinancing of power plants in South
Africa, Vietnam, and Egypt at improved terms, demonstrating the company's
ability to find innovative financial solutions and new funding sources to
enhance project returns. Scatec also continued building a leading position
within green ammonia and hydrogen at attractive locations in Oman and Egypt,
with favourable conditions for renewable energy. The company made its first
stand-alone investment in a 20 MW battery energy storage system in the
Philippines, marking a key milestone of Scatec's growth strategy in the country.
On 24 February, Russia attacked Ukraine, a war that has now entered its third
month. We witness a country under siege and countless lives lost in defence of
their home. This situation has given rise to a major humanitarian and
geopolitical crisis. Our top priority is the safety and wellbeing of our
Ukrainian colleagues. Scatec's plants are 95 per cent operational; however, the
situation remains volatile, and we continue to monitor the situation closely.
Scatec made an impairment of NOK 770 million of non-current assets and a credit
loss provision on trade and other receivables of NOK 87 million on a
proportionate basis in Ukraine during the quarter.
The 2022 guidance has been adjusted based on the situation in Ukraine. We now
expect to produce between 3.9 to 4.2 TWh on a proportionate basis and generate
an EBITDA for 2022 of NOK 2.3 to 2.6 billion.
Backlog and projects
Scatec has a backlog of five projects totalling 1.7 GW of solar and 1.1 GWh of
battery storage capacity after discontinuing development of Mali and Bangladesh
in the quarter. Scatec made good progress on these projects during the quarter
and aims to reach financial close and start construction on all projects during
2022.? Despite challenges including cost inflation, Scatec expects these
projects to deliver returns and margins in line with the company's guidance?.
Scatec's first-quarter consolidated revenues were NOK 759 million (831), with an
EBITDA of NOK 433 million (631). The consolidated net loss was NOK 1,062 million
Changes to executive team
Scatec is also announcing some key changes to the executive management today.
Kate Bragg, who joined Scatec in August 2021 as Head of Strategy and M&A, will
join the team as EVP Corporate Development, while Ann-Mari Lillejord, who re-
joined Scatec in April 2022, will become EVP Project Development.
In addition, Power-to-X will be lifted to executive level and this area will be
managed by Pål Helsing in the interim, in addition to his current role as EVP
Solutions. Release, a flexible leasing agreement of pre-assembled and
containerised solar PV and battery equipment, will become an independent
A Factsheet with detailed information related to Scatec's projects in operation,
under construction and in backlog has today been published on Scatec's web page.
Link: scatec.com/investor (https://scatec.com/investor/events-presentations/)
Proportionate historical financial information on a country-by-country level is
attached to the stock exchange notice but has been removed from the report.
A presentation of the results, followed by a Q&A session will be held at
Scatec's headquarters at Skøyen Atrium III (1(st) floor), Askekroken 11, 0277
Oslo, today at 09:00 am CEST. You can also follow the presentation and Q&A
session from our website www.scatec.com
41r8xmAm_mY=), or this direct link: Scatec Webcast Q1 2022.
For further information, please contact:
For analysts and investors: Andreas Austrell, VP IR, tel: +47 974 38 86,
For media: Meera Bhatia, SVP Communications, tel:
+47 46 84 49 59, firstname.lastname@example.org (mailto:email@example.com)
Scatec is a leading renewable energy solutions provider, accelerating access to
reliable and affordable clean energy in high growth markets. As a long-term
player, we develop, build, own and operate renewable energy plants, with 3.5 GW
of installed capacity across four continents today. We are targeting 15 GW of
renewable capacity to be in operation or under construction by the end of 2025,
delivered by our 600 passionate employees 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 (https://www.globenewswire.com/Tracker?data=vr-
NRsEg==) or connect with us on LinkedIn
This information is subject to the disclosure requirements pursuant to Section
5-12 the Norwegian Securities Trading A