Scatec Solar Asa Stock Earnings Reports

Key points for investors:

- Strong operational quarter with group proportionate revenues of NOK 1.6 billion and proportionate EBITDA of NOK 774 million. Consolidated revenues and EBITDA were lower year‑on‑year mainly due to prior-year divestment gains. D&C activity contributed NOK 695 million in revenues and NOK 100 million in EBITDA this quarter (including an NOK 80 million contingency release from Obelisk).

- Growth portfolio at an all‑time high: 5.9 GW of generation capacity in backlog (projects concentrated in Egypt, South Africa, Tunisia and the Philippines) and 4.6 GWh of battery storage backlog. If backlog + construction complete as planned, Scatec expects to grow generation capacity to >12 GW over the coming years (~2.5x current capacity).

- Project execution and recent CODs: Several projects reached commercial operation this quarter (including the first phase of the 1.1 GW Obelisk project in Egypt, and projects in Tunisia and South Africa), adding ~683 MW solar and 200 MWh battery storage. New projects under construction total ~1.4 GW solar and 587 MWh storage.

- Financial position strengthened: available liquidity of NOK 6.1 billion following RCF refinancing (limit increased to $350m) and a NOK 286 million repayment of vendor financing. Gross corporate debt reduced to NOK 6.5 billion; project-level nonrecourse debt increased as new projects drew financing.

- Margins and D&C outlook: Reported D&C gross margin of 22% this quarter driven by the NOK 80 million contingency release; underlying D&C gross margin adjusted to ~11%, consistent with guidance (10–12%). Remaining contract value in D&C rose to NOK 4.2 billion.

- Guidance and risks: Full‑year EBITDA midpoint reduced to ~NOK 3.75 billion (≈ NOK 200 million lower vs prior guide) mainly due to an estimated NOK 150 million FX headwind from a stronger NOK and a NOK 56 million reversal related to a Vietnam earn‑out. Power production guidance was updated and Q2 production/Philippines EBITDA have increased uncertainty driven by El Niño, hydrology and geopolitical impacts (which may be upside or downside). A Ukraine plant remains offline and is expected to return later than previously anticipated.

- Strategy: Scatec emphasizes fast, low‑cost execution, energy security value proposition (not just sustainability), and capital-light growth vehicles (e.g., Lyra JV in South Africa) to scale with limited corporate balance-sheet exposure.