Scatec Announces 2021 Financial Results

• Scatec's Q4/2021 proportionate revenues went up and so did its EBITDA along with power production from operational assets
• It increased its project pipeline to over 14.77 GW with the addition of a 900 MW solar facility it plans to realize in India
• Around 70% of the project backlog and pipeline is planned for the company's core markets of South Africa, Egypt, Brazil, Philippines, Vietnam and India
• In 2021, its proportionate revenues increased to NOK 4.61 billion, up from NOK 2.84 billion YoY, reflecting the inclusion of SN Power hydro assets and new solar plants that came online

Norwegian renewables company Scatec reported to have grown its project pipeline by 51% YoY to over 14.77 GW at the end of 2021, of which solar technology takes up the lion's share with 45% or 6.64 GW, followed by wind at 33% or 4.91 GW, and hydro at 16% or 2.3 GW, among others.

During the year it grew its grid connected pipeline with the addition of 320 MW of new solar plants. It added 803 MW capacity in Brazil and South Africa to the project backlog in Q4/2021, while a 900 MW solar project in India was put on hold due to the country's upcoming Basic Customs Duty (BCD) on imported solar modules (see 900 MW India Solar Project Put On Hold). With this, its total project backlog at the end of December 2021 was 1.818 GW.

Nonetheless, India finds place among Scatec's 6 core markets with the remaining being South Africa, Egypt, Brazil, Philippines and Vietnam where it sees strong demand and growth opportunities. Around 70% of the project backlog and pipeline in these markets, stated the management.

In Q4/2021, its proportionate revenues grew to NOK 1.25 billion from NOK 497 million a year back, and EBITDA increased to NOK 683 million, compared to NOK 497 million in Q4/2020, with an associated EBITDA margin of 55%. Power production during the period increased by more than 2.5 times annually to 1,047 GWh.

This quarter was also significant for Scatec since it started delivery of the company's redeployable solar and battery solutions Release in Cameroon, Chad and South Africa (see Release By Scatec Enters Into Lease Agreement With ENEO).

For 2021, its proportionate revenues and EBITDA reached NOK 4.61 billion and EBITDA NOK 2.68 billion, up from NOK 2.84 billion and NOK 1.3 billion in 2020, respectively. Revenue increase reflects the inclusion of SN Power hydro assets and new solar power plants grid connected.

Going forward, in Q1/2022, the company expects to report proportionate financials of between NOK 850 million to NOK 950 million. For 2022, the guidance range is between NOK 3.9 billion to NOK 4.3 billion. Proportionate EBITDA for the year is likely to vary between NOK 2.7 billion to NOK 3.0 billion. These estimates are based on production from 3.355 GW of assets operational since the end of 2021.