Scatec reports third quarter results: Focus and discipline
Oslo, 2 November 2023: In the third quarter 2023, Scatec reported solid proportionate revenues of NOK 2.46 billion (1.63), with an EBITDA increase of 5 percent compared to the third quarter last year to NOK 893 billion (850).
Scatec realised strong development and construction (D&C) revenues of NOK 1.32 billion (412) from its three main projects under construction and improved the gross margin for a third consecutive quarter to 13 percent. These projects are now entering the final construction phase and preparing for commercial operations. Proportionate Power Production was 1,047 GWh (1,135) and revenues in the Power Production segment were NOK 1,028 million (1,120), impacted by reduced revenues in the Philippines. Power production EBITDA was NOK 778 million (907).
“We take pride in the progress we have achieved since our capital markets update and in recent months. Our dedicated team is committed to driving transformative change through world-class renewable energy initiatives spanning from South Africa to the Philippines to Brazil. Scatec has realised significant renewable growth through our highest construction activity ever and the projects have strong economics with robust returns and attractive gross margins,” says Scatec CEO Terje Pilskog.
“Crossing key milestones during the quarter, we have showcased operational excellence and business model resilience amid current challenging economic conditions. In addition, we have focused our activities to ensure our readiness for profitable growth. The pipeline has been streamlined; we have reduced operational costs levels and sold assets, both to recycle capital and reduce complexity in our portfolio,” adds Pilskog.
Strategy and way forward
Scatec’s strategy remains firm – to develop, build, own, and operate renewable energy, with a focus on growing renewables and optimising the portfolio. Scatec continues to see strong long-term demand for renewables and particularly attractive opportunities within solar as component prices are decreasing.
However, the current macro-economic landscape, marked by record high interest rates is putting pressure on the cost of capital and project profitability. Scatec is therefore aligning its growth rate to internal funding capacity, targeting NOK 500 – 750 million of gross equity investments annually, in line with the company’s historical growth pace. Investing with discipline, Scatec will utilise its integrated business model and stay committed to delivering attractive returns of 1.2 times cost of equity, D&C gross margins of 8-10% and O&M margins of 25-30%.
The cash flow from Scatec’s operating plants is robust and will increase significantly over the next months with the new plants coming into operations. Growth and debt repayments will be funded by internal capacity coming from a strong and growing cash flow from operating assets, enhanced capital recycling activities, alternative ownership structures with reduced equity stake and no dividend payments.
“We continue to be committed to disciplined growth with attractive margins funded by internal capacity, while focusing on optimising our portfolio. The long-term fundamentals for renewables remain strong, and we’re adjusting in the short-term to navigate the current macro-economic and capital market situation, putting firm mitigating actions in place. We’re also accelerating our efforts on capital recycling and will also consider additional debt repayments,” adds Pilskog.
The full year 2023 EBITDA estimate for Power Production is updated from NOK 3.1 – 3.4 billion to NOK 3.05 – 3.25 billion, driven by a revised production estimate for the Philippines, the sale of the solar plant in Argentina and foreign currency effects.
Given the current macro-economic and capital market situation the Board of Directors have approved to change the dividend policy to no dividend. The dividend policy will be assessed annually by the board based on Scatec’s capital situation.
Proportionate historical financial information on a country-by-country level is attached to the stock exchange notice.
A presentation of the results, followed by a Q&A session will be held at Scatec’s headquarters at Skøyen Atrium III (1st floor), Askekroken 11, 0277 Oslo, today at 09:00 am CET. You can also follow the presentation and Q&A session from our website, or this direct link: Scatec webcast Q3 2023.
For further information, please contact:
For analysts and investors: Andreas Austrell, VP IR, phone: +47 974 38 686, email@example.com
For media: Meera Bhatia, SVP Communications & Government Affairs, phone: +47 468 44 959, firstname.lastname@example.org
Scatec is a leading renewable energy solutions provider, accelerating access to reliable and affordable clean energy emerging markets. As a long-term player, we develop, build, own, and operate renewable energy plants, with 4.4 GW in operation and under construction across four 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.
This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act
- Scatec third quarter report 2023
- Scatec third quarter presentation 2023
- Scatec Q3 historical financial information 2023
To view this piece of content from ml-eu.globenewswire.com, please give your consent at the top of this page.
About GlobeNewswire by notified
One Liberty Plaza - 165 Broadway
NY 10006 New York
GlobeNewswire by notified is one of the world's largest newswire distribution networks, specializing in the delivery of corporate press releases financial disclosures and multimedia content to the media, investment community, individual investors and the general public.
Subscribe to releases from GlobeNewswire by notified
Subscribe to all the latest releases from GlobeNewswire by notified by registering your e-mail address below. You can unsubscribe at any time.
Latest releases from GlobeNewswire by notified
Buy-backs of shares in CoinShares International Limited29.11.2023 09:00:00 CET | Press release
29 November 2023 | SAINT HELIER, Jersey - As announced on 07 November 2023, the Board of Directors of CoinShares International Limited ("CoinShares" or the "Company") (Nasdaq Stockholm Market: CS; US OTCQX: CNSRF), Europe's leading alternative asset manager specialising in digital assets, resolved to extend a share buy-back program and repurchase shares on Nasdaq Stockholm Market during the period 07 November 2023, up to and including 30 May 2024 for total maximum amount of SEK 30 million in accordance with the authorisation from the Annual General Meeting on 31 May 2023. The Board of Directors’ resolution to implement the share buy-back program was made after the Board's review of the Company's capital structure and was implemented for the purposes of reducing the capital of the Company. The share buy-back program is carried out in accordance with the Market Abuse Regulation (EU) No 596/2014 ("MAR") and the Commission Delegated Regulation (EU) No 2016/1052 (the "Safe Harbour Regulatio
Deutsche Digital Assets Wins Pension Fund as Anchor Investor for DDA Crypto Select 10 ETP (SLCT)29.11.2023 09:00:00 CET | Press release
Institutional anchor investor for DDA Crypto Select 10 ETP (ISIN: DE000A3G3ZD0; WKN: A3G3ZD, Ticker: SLCT) The DDA Crypto Select 10 ETP reflects the MarketVector™ Digital Assets Max 10 VWAP Close Index (“MVDAMV”)With the ETP, investors are in a position to affordably gain exposure to a basket collection of (up to) the 10 most important crypto assetsThe ETP is 100% collateralized by coins held in an institutional custody solution FRANKFURT, Germany, Nov. 29, 2023 (GLOBE NEWSWIRE) -- Deutsche Digital Assets GmbH has gained a renowned institutional anchor investor for the DDA Crypto Select 10 ETP (ISIN: DE000A3G3ZD0 | WKN: A3G3ZD), which was launched in June 2023. DDA prevailed against the competition in a selection process and was commissioned to design a crypto ETP that meets high quality standards and strict requirements of an institutional investor. After several months of preparation, this investment product can now be administered by a leading capital management company acting on be
Yara helps farmers combat the effects of climate change and improve nutrient use efficiency29.11.2023 08:40:00 CET | Press release
Global rise in temperatures has introduced a challenging reality for farmers worldwide. To meet the increasing demand for solutions to protect crops against climate change and optimize nutrient use efficiency, Yara is launching YaraAmplix™. A new brand that will expand the range of biostimulants. November 29th 2023 Milan: Climate change is putting many of the world’s most popular foods such as maize, tomato and wheat at risk of reduced crops. With the average global temperature on earth having already increased by over 1 degree Celsius in the last 100 years*1, agriculture is now experiencing more extreme weather than ever before with temperature increases being most severe on land. In response to farmers asking for solutions to increase crop resilience and nutrient use efficiency, Yara today announces the launch of YaraAmplix, a new brand of biostimulants, at the Biostimulant World Congress in Milan, Italy. “Extreme weather is destroying crops all over the world with drought, flooding
Sanoma Corporation - Managers' Transactions29.11.2023 08:30:00 CET | Press release
Sanoma Corporation, Managers’ Transactions, 29 November 2023 at 9:30 EET Sanoma Corporation - Managers' Transactions ___________________________________________ Person subject to the notification requirement Name: Holding Manutas Oy Position: Closely associated person (X) Legal person (1):Person Discharging Managerial Responsibilities In Issuer Name: Herlin Anna Position: Member of the Board Issuer: Sanoma Oyj LEI: 743700XJC24THUPK0S03 Notification type: INITIAL NOTIFICATION Reference number: 44711/8/10 ____________________________________________ Transaction date: 2023-11-28 Venue: AQEU Instrument type: SHARE ISIN: FI0009007694 Nature of transaction: ACQUISITION Transaction details (1): Volume: 250 Unit price: 6.87 EUR (2): Volume: 32 Unit price: 6.9 EUR Aggregated transactions (2): Volume: 282 Volume weighted average price: 6.8734 EUR ____________________________________________ Transaction date: 2023-11-28 Venue: BEUP Instrument type: SHARE ISIN: FI0009007694 Nature of transaction:
Delårsrapport for 1. januar - 30. september 2023 for FirstFarms A/S29.11.2023 08:05:40 CET | pressemeddelelse
FirstFarms leverer tilfredstillende i udfordrende marked FirstFarms skaber fornuftige resultater på trods af høj inflation på omkostninger og stort pres på salgspriser. Omsætningsfremgang på 19% og fastholdelse af udmeldte forventninger til året. Bestyrelsen og direktionen i FirstFarms A/S har d.d. behandlet og godkendt det ureviderede delårsregnskab for perioden 1. januar - 30. september 2023. FirstFarms har i regnskabsperioden realiseret: Omsætning: 345 mDKK (2022: 291 mDKK)EBITDA: 79 mDKK (2022: 121 mDKK)EBIT: 42 mDKK (2022: 89 mDKK)Resultat før skat: 28 mDKK (2022: 77 mDKK) Produktion og resultatskabelse er tilfredsstillende med baggrund i de udfordrende forudsætninger FirstFarms har opereret under i årets første tre kvartaler. Resultatet er skabt som følge af en stabil, effektiv, cirkulær drift samt den risikospredning, der er et positivt og væsentligt særkende for koncernen. FirstFarms A/S fastholder derfor de udmeldte forventninger for 2023. Dog med et EBITDA i den nedre del af