Norway-based renewable energy solutions provider Scatec posted a 41.6% year-over-year (YoY) rise in consolidated revenue to NOK1.81 billion (~$174.28 million) in the first quarter (Q1) of 2025 from NOK1.28 billion (~$123.25 million).

The company has attributed the revenue growth to an increase in power production, which rose by 78 GWh from last year, primarily driven by improved hydrology in the Philippines and Laos.

The retroactive tariff compensation of NOK52 million (~$5 million) related to Pakistan’s tariff true-up process and contribution from Botswana’s first phase of the Mmadinare project also contributed to the revenue increase.

Revenues in the development and construction (D&C) segment reached NOK751 million (~$2.5 million), an increase of NOK599 million (~$57.67 million) YoY.

Scatec, however, ran up a net profit of NOK764 million (~$73.56 million) from a net loss of NOK26 million (~$68.26 million) in the same quarter the previous year.

The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) surged 48.12% YoY to NOK1.5 billion (~$144.43 million) from NOK1.02 billion (~$98.21 million).

Earnings Per Share (EPS) came in at NOK4.8 (~$0.46) in Q1 2025 compared to an EPS loss of NOK0.73 (~$0.07) in Q1 2024.

The D&C segment is expected to continue delivering strong margins of 10-12%, with high construction activities.

Operational Highlights

Scatec earned NOK2.1 billion (~$202.21 million) in divestment proceeds from offloading the African hydropower joint venture, the Dam Nai wind farm in Vietnam, and a strong contribution from the Philippines.

It reduced the corporate net interest-bearing debt to NOK5.2 billion (~$500.71 million).

The company has begun constructing a 1.1 GW solar and 156 MW Battery Energy Storage System (BESS) in Egypt and the Philippines. It has a 1.3 GW solar and 100 MW BESS backlog in Egypt and Tunisia.

It has 4.2 GW projects under construction and 2.2 GW projects in the backlog.  Its projects in South Africa, Brazil, the Philippines, Tunisia, and Botswana are in various stages of construction. In Botswana, it commissioned 60 MW out of the 120 MW Mmadinare Solar Cluster.

The company has placed a four-year $125 billion green bond with a margin of three-month London interbank offered rate plus three fifteen basis points with the help and support of their core banks.

Outlook

Scatec’s full-year 2025 proportionate power production remained unchanged at 4.1 TWh and 4.5 TWh. The company’s 2025 proportionate EBITDA estimate increased by NOK400 million (~$38.51 million) to NOK4.15 billion (~$399.6 million) – NOK4.45 billion (~$428.49 million).

The remaining D&C contract value of NOK6.7 billion (~$645.14 million) projects are under construction. The company estimates a 10-12% gross margin for projects under construction and in backlog. Speaking at the earnings call, the company said it hopes to capture good value in the battery segment going forward. It is building out 56 MW currently.

Scatec said that since it does not received import from the U.S., the recent tariff impositions on imports will not impact it. However, the company said that it will be closely watching out for any possible impact from the geopolitical situation in Ukraine and the ongoing war in Ukraine.

In Q4 2024, Scatec reported a net loss of NOK101 million (~$8.88 million) from a net profit of NOK724 million (~$63.73 million) due to increased operating expenses and cost of sales.

In Q3 2024, the company reported a 1,632% YoY rise in net profit to NOK1.65 billion (~$150.18 million) from NOK95 million (~$8.64 million).