Scatec Announces Q4 Results, Defers 900 MW India Solar Project

Independent power producer Scatec 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.

Scatec develops, builds, owns, and operates solar, wind, and hydropower projects and storage solutions. The company has more than 3.5 GW of projects in operation and under construction.

The earnings, however, showed an upward trend regardless of the project backlogs.

The earnings before interest, taxes, depreciation and amortization (EBITDA) for 2021 were NOK29.49 billion (~$3.39 billion), an increase of 110% compared to the NOK14.04 billion (~$1.61 billion) recorded in 2020.

The revenue generated from power production in 2021 is NOK41.76 billion(~$4.73 billion); this figure was NOK17.08 (~$1.93 billion) in 2020.

The company’s power production capacity increased by 1,814 MW compared to the end of 2020, 320 MW of which came from solar.

The operating profit for 2021 stood at NOK16.06 billion (1.82 billion), up by 132% from NOK6.9 billion (~$782 million) in 2020.


Image credit: Scatec

Quarterly performance

Scatec revenue in the fourth quarter (Q4) FY 2021 is NOK12.50 billion (~$1.41 billion), NOK4 billion (~$453 million) short of its Q3 2021 revenue.

The EBITDA for Q4 2021 was NOK6.36 billion (~$721 million), a decrease of 17% compared to the NOK7.67 billion (~$869 million) recorded in Q3 2021.

The operating profit for Q4 FY 2021 stood at NOK3.99 billion (~$452 million), down by 14% from NOK4.63 billion (~$524 million) in Q3 FY 2021.

The decrease was mainly attributed to the lower seasonal production in Ukraine and the Czech Republic. This was, however, partly offset by higher production in South Africa and the Philippines. According to Scatec, power production in the Philippines ended in line with the five-year seasonal average. The company is said to be closely monitoring the geopolitical situation in Ukraine.

Project backlogs

The company has put the 900 MW India solar project on hold. Scatec had partnered with ACME last year to mark its entry into the Indian market with a 900 MW solar power project worth $400 million. The company cited the reasons for deferring the project as the lack of supply of domestic solar panels and the imposition of 40% basic customs duty (BCD) on solar panels coming into effect on April 1, 2022.

Scatec has  530 MW solar in Brazil and 273 MW solar in South Africa in the project backlog for the quarter. A few other projects listed were 540 MW solar and 225 MW battery system projects in South Africa, 360 MW solar in Tunisia, and 150 MW solar in Pakistan. The construction for all projects in the backlog is expected to begin in 2022, the company said in its statement.

The Release project by Scatec has started the delivery of re-deployable solar and battery solutions in Cameroon and Chad.

Scatec Solar had completed a private placement, raising approximately NOK 4,750 million (~$514.94 million) in gross proceeds by allocating 20,652,478 shares subscription price of NOK 230 (~$24.93) per share.