Norway-based renewable energy solutions provider Scatec reported revenue of NOK1.4 billion (~$154.66 million) in the third quarter (Q3) of 2026, rising 50.4% year-over-year (YoY) from NOK 935 million (~$102.85 million).

Earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 44.6% year-over-year (YoY) to NOK 1.135 billion (~$124.85 million) from NOK 785 million (~$86.35 million).

Scatec posted a net loss of NOK1.135 billion (~$124.85 million), compared with a net profit of NOK5 million (~$550,000) a year earlier. Earnings per share (EPS) were negative NOK6.27 (~$0.6897), compared with negative NOK0.02 (~$0.0022).

Scatec’s revenue and EBITDA growth was driven by increased contributions from newly operational renewable energy projects and improved earnings from its Development and Construction segment. The completion of the Obelisk project in Egypt further supported earnings through contingency releases. However, impairment losses in Ukraine and Pakistan weighed on profitability, reflecting operational disruptions, higher country risks, and uncertainty over future cash flows.

In Q2 2026, Scatec reported total revenue and other income of NOK1.369 billion (~$147.3 million), up 4% YoY from approximately NOK1.32 billion (~$141.6 million). Its revenue, excluding other income, stood at NOK1.24 billion.

Business Updates

Proportionate revenue declined to NOK2.27 billion (~$249.7 million) in Q3 from NOK2.95 billion (~$324.5 million) a year earlier.

Power generation increased 22% YoY to approximately 1.47 TWh, including more than 400 GWh from newly commissioned projects. Power Production revenue rose 10% to NOK1.3 billion (~$143 million).

Development and Construction revenue stood at NOK948 million (~$104.28 million), compared with approximately NOK1.8 billion (~$198 million) a year earlier.

Scatec recognized consolidated impairment losses totaling NOK1.15 billion (~$126.5 million), comprising NOK1 billion (~$110 million) in Ukraine and NOK150 million (~$16.5 million) in Pakistan. The Ukraine impairment reflected attacks on energy infrastructure, operational disruptions, restoration delays, and a weaker long-term electricity price outlook. The Pakistan impairment was driven by higher country risk premiums, increased long-term U.S. dollar interest rates, delays in tariff adjustments, and uncertainty over the timing and amount of future cash flows.

In the Philippines, the Energy Regulatory Commission suspended the ancillary services reserves market on October 14, 2026, following exceptionally high prices in the Visayas and Mindanao regions. Scatec is considering reallocating ancillary services to batteries, spot-market hydropower sales, bilateral contracts, and intraday battery trading to mitigate the impact.

Commercial operations at the Mogobe battery energy storage project in South Africa were delayed by Eskom grid connection work. In Brazil, the Mendubim solar project continued to face uncompensated curtailment and breached certain covenants under its non-recourse financing as of September 30, 2026.

Scatec secured $150 million in equity bridge loans from The Arab Energy Fund for its Shadwan and Energy Valley projects in Egypt.

The company issued a NOK1.5 billion (~$165 million) bond to refinance more expensive debt, expecting annual interest savings of approximately NOK50 million (~$5.5 million). Corporate gross interest-bearing debt increased to approximately NOK7.1 billion (~$781 million), following a NOK724 million (~$79.64 million) revolving credit facility drawdown. Scatec expects to repay the drawdown in the first half of 2027.

Scatec had NOK2.74 billion (~$301.4 million) in available group liquidity as of September 30, including NOK1.2 billion (~$132 million) in free cash and NOK1.53 billion (~$168.3 million) in undrawn facilities. Two new green revolving credit facilities totaling $350 million became effective on October 29, replacing a $230 million facility.

Outlook

Scatec reduced its full-year 2026 Power Production EBITDA guidance by NOK300 million (~$33 million) to NOK3.3 billion (~$363 million) to NOK3.6 billion (~$396 million). The revision includes lower expected revenue in the Philippines, Ukraine, South Africa, and Pakistan, alongside currency and other negative effects.

The company lowered its full-year generation estimate by 150 GWh to approximately 5,050 GWh, within a range of 4,950 GWh to 5,150 GWh. It expects fourth-quarter generation of 1,300 GWh to 1,400 GWh and Philippine EBITDA of NOK200 million (~$22 million) to NOK300 million (~$33 million). Corporate EBITDA guidance is negative NOK110 million (~$12.1 million) to negative NOK120 million (~$13.2 million).

Projects under construction and in backlog represent approximately 6.6 GW of generation and 5.4 GWh of storage. Scatec estimates capital expenditure of NOK54 billion (~$5.94 billion) for these projects, with an equity investment of approximately NOK5 billion (~$550 million) under its stated financing assumptions. The completed portfolio is expected to generate approximately NOK750 million (~$82.5 million) in average annual cash flow.

In Egypt, the Energy Valley project in the backlog includes 1,950 MW of solar capacity and an 842 MW/3,935 MWh storage system. The proposed European Bank for Reconstruction and Development investment platform is expected to hold interests in Obelisk, Shadwan, Dandara Phase 1, and Energy Valley.