Norway-based renewable energy solutions provider Scatec reported a 1,632% year-over-year (YoY) rise in net profit to NOK1.65 billion (~$150.18 million) in the third quarter (Q3) of the financial year (FY) 2024-25 from NOK95 million (~$8.64 million).

The company attributes its significant rise in net profit to improved performance in development and construction (D&C) activities.

The company’s revenue also climbed 213.3% YoY to NOK2.97 billion (~$270.33 million) from NOK947 million (~$86.19 million), primarily due to revenues totaling NOK 631 million (~$57.5 million) in the D&C segment in the quarter, with a gross margin of 12%.

Revenues in the Philippines increased by NOK132 million (~$12 million) due to the reopening of the Reserve Market for ancillary services. The company recorded NOK185 million (~$16.85 million) revenues from new projects in operation and increased revenues from Ukraine of NOK40 million (~$3.64 million) driven by high payment level.

The company’s EBITDA also expanded 287.6% YoY to NOK2.66 billion (~$242.12 million) from NOK686 million (~$62.44 million).

Power generation increased by 207 GWh compared to the same quarter last year, mainly driven by new projects in operation.

9M results

In the first nine months (9M) of FY25, the company’s net profit jumped by 297.74% YoY to NOK1.59 billion (~$144.72 million) from NOK399 million (~$36.31 million).

The company’s consolidated revenue also rose 75.04% YoY to NOK5.42 billion (~$493.34 million) in 9M FY25 from NOK3.1 billion (~$282.17 million).

The EBITDA increased by 107.5% YoY to NOK4.61 billion (~$419.61 million) from NOK2.22 billion (~$202.07 million).

It reported earnings per share (EPS) of NOK10.20 (~$0.92) in Q3 FY25 and EPS of NOK9.13(~$0.83) in 9M.

The company has attributed the strong 9M to key contributions from new projects in operation, strong results in the Philippines and Ukraine, and solid gains from divestments. Power production revenues were NOK1.77 billion (~$161.11 million) and power production EBITDA ended at NOK1.54 billion (~$140.17 million).

Scatec’s power projects generated 1,254 GWh in the quarter, up from 1,047 GWh in the same quarter last year, mainly driven by new plants in operation.

The company has begun construction of two solar projects with a combined capacity of 120 MW in Tunisia in partnership with the Toyota Tsusho Group. It has also signed a 25-year power purchase agreement for a 1.1 GW solar energy project with 100MW/200MWh of battery storage in Egypt.

The company has 556 MW of solar + BESS already under construction and 1.6 GW in backlog.

Scatec CEO Terje Pilskog said, “We have had excellent progress in the projects that we have in construction, in Grootfontein in South Africa, in Botswana, and in Tunisia. We have just reached the financial close of Mogobe, a battery project in South Africa. And this will then also in the future contribute to this part of the business. And we now have 565 megawatts in construction in total. The total remaining EPC contract value amounts to NOK3.4 billion and our total committed equity investments amounts to NOK515 million in terms of the total portfolio.”

The CEO noted that the company continues to optimize its portfolio with agreements signed to sell its African hydropower assets to TotalEnergies and Vietnam wind project to the SUSI Asia Energy Transition Fund. The company also divested parts of its solar power projects from the Renewable Energy Independent Power Producer Procurement Program (REIPPP) rounds 1 and 2 in South Africa to STANLIB. “Asset rotation, reducing ownership stakes in our operating assets to reinvest into new growth, will be a central part of our strategy going forward,” he added.

Scatec’s core markets—South Africa, Egypt, Brazil, and the Philippines are expected to attract about 90% of its investments in the short to medium term.

To finance its expansion plan of developing projects including solar PV, onshore wind, and batteries, the company is targeting proceeds of at least NOK 4 billion (~$364.35 million) from divestments by 2027. It intends to adopt a capital-efficient model with lower ownership stakes and allocate 75% of divestment proceeds to corporate debt repayments, strengthening balance sheet and financial flexibility.

The company has increased its full-year EBITDA guidance by NOK350 million (~$31.85 million) to a midpoint of NOK4.25 billion (~$386.84 million).

The full-year power production guidance is estimated at 4,200-4,300 GWh on a proportionate basis. The decrease in midpoint from previous guidance is driven by the partial divestment of Kalkbult, Dreunberg, and Linde.

Power production in Q4 FY25 is estimated at 1,100-1,200 GWh on a proportionate basis.

In Q2 FY25, Scatec reported revenues of NOK1.5 billion (~$141 million), an increase of 38% YoY.

In Q4 FY24, the company announced its quarterly and full-year results, showing a revenue generation of NOK46.15 billion (~$5.23 billion) in 2021, a 62% increase compared to NOK28.44 billion (~$3.22 billion) registered in 2020.