Scatec Reports NOK 68 Million Loss For Q2/2022

• Scatec's Q2/2022 consolidated revenues and EBITDA declined on annual basis as its reported net loss of NOK 68 million
• Lower revenues from Ukraine, increased operating expenses and lower net income from JVs and associated companies were stated as broad reasons
• It has now started construction activities in South Africa and Brazil, among other regions as it exited Q2/2022 with 14.8 GW project pipeline

Norway headquartered renewable energy company Scatec has reported NOK 68 million consolidated net loss for Q2/2022, as its revenues and EBITDA too declined owing to factors including lower revenues from Ukraine. However, its project pipeline now stands at 14.8 GW.

In Q2/2022, Scatec's consolidated revenues dropped over 4% to NOK 836 million and EDITDA was down by more than 18% to NOK 547 million. Other factors were attributed as lower net income from joint ventures (JV) and associated companies, and increased operating expenses. In comparison, its net profit in Q2/2021 added up to NOK 110 million.

In Ukraine, Scatec has an operational solar power capacity of 336 MW in the form of 5 projects, out of which 95% of the plants are 'intact and available', but pointed out that power demand is down and production is being curtailed by the grid operator on an ad hoc basis.

Its proportionate revenues increased to NOK 1,130 million, compared to NOK 1,007 million on annual basis, while EBITDA was NOK 517 million down from NOK 601 million in the previous year.

Meanwhile, the company grew its total project pipeline by June 2022 to 14.8 GW, from 14.6 GW it reported in the previous quarter. Of this, solar forms the lion's share with 43% or 6.3 GW, followed by wind with 37% or 5.5 GW, among others.

It has started construction activities in South Africa for 540 MW solar and 225 MW/1,140 MWh battery storage capacity for which it reached financial close this month. Scatec calls this as its largest investment to date. It has also broken ground at 531 MW Mendunim solar site in Brazil's Rio Grande do Norte

The company increased power production in the reporting quarter to 916 GWh, up from 860 GWh in the previous year.

It has now increased the 2022 EBITDA guidance for proportionate power production to NOK 2.5 billion to 2.7 billion, from NOK 2.3 billion to 2.6 billion, reflecting currency exchange rates as per the end of the second quarter.

"Going forward, our top priority is to ramp up construction activities, optimize returns of our backlog projects and continue to mature our pipeline," added Scatec CEO Terje Pilskog.