Third quarter 2022: Strong performance driven by the Philippines: Scatec -EQ Mag Pro
Oslo : In the third quarter 2022, Scatec’s proportionate revenues increased by 52% to NOK 1,818 million (1,196) with an all-time high EBITDA of NOK 850 million (767). Power production rose to 1,135 GWh (1,065).
“We reported strong results from our diversified portfolio of power plants driven by the solid performance in the Philippines. We had an all-time high EBITDA during the third quarter and our construction activities in South Africa, Brazil, and Pakistan are progressing well. We continue to focus on delivering on our strategy and see stable performance of our operating asset portfolio,” says Scatec CEO Terje Pilskog.
Power Production
Proportionate revenues in the Power Production segment increased by NOK 239 million to NOK 1,311 million compared to the same quarter last year, driven by significantly higher power sales at higher power prices in the Philippines and foreign currency effects.
Power production in the Philippines ended 37 percent above the 5-year average and above the contracted sales volumes as expected. Excess production volumes were sold in the power market at high prices resulting in an EBITDA of NOK 907 million.
Development and Construction
Development and construction revenues reached NOK 412 million in the third quarter, generated from the projects under construction in South Africa, Brazil, and Pakistan. The gross margin for the period was 10 per cent, and the remaining non-booked contract value was approximately NOK 9 billion.
The project pipeline and backlog are 16 GW across renewable technologies, and 80 per cent are held in our focus markets.
Guidance
The proportionate Power Production full year 2022 EBITDA guidance is increased to NOK 2.75-2.85 billion from NOK 2.5-2.7 billion, reflecting the third-quarter results, and the expected above normal fourth-quarter performance in the Philippines and currency exchange rate development.
Consolidated profit and loss
Scatec’s third-quarter consolidated revenues were NOK 1,163 million (1,059), with an EBITDA of NOK 886 million (827) mainly explained by higher net income from joint ventures and associated companies driven by the Philippines.
“This is a critical time for renewable energy companies. We have an important role to play in helping the world achieve its climate targets. Reducing greenhouse gas emissions to our atmosphere will require investment, innovation, technology, and a massive cultural shift. We believe that emerging markets are essential in this journey, and we have the know-how and expertise to continue capturing value and growth opportunities,” concludes Pilskog.
