Average reading time for this story is 2 minutes
Scatec, the global leader in renewable energy solutions, has reported remarkable financial results for the fiscal year 2023, showcasing a year of strategic accomplishments and unprecedented construction activity. The fourth quarter financial report reveals substantial gains, with proportionate revenues totaling NOK 1.7 billion, accompanied by an EBITDA of NOK 808 million.
Throughout the year, Scatec achieved all-time high proportionate revenues of NOK 12.7 billion and EBITDA of NOK 3.8 billion, primarily fueled by extensive construction activity. The development and construction segment, in particular, contributed significantly, delivering revenues of NOK 532 million with an impressive gross margin of 15 percent.
Terje Pilskog, Scatec’s CEO, expressed pride in the achievements of the global team, stating, “Throughout 2023 we delivered on our strategy, and I am proud of the achievements by our global team. EBITDA from our operating assets reached NOK 3.2 billion and we generated 3.6 TWh of clean energy with no lost time incidents, while our power plants helped to avoid 3.9 million tonnes of greenhouse gas emissions.”
In the fourth quarter of 2023, Scatec’s proportionate Power Production reached 811 GWh, generating revenues of NOK 1,034 million and an EBITDA of NOK 793 million.
“The year was also characterized by the largest construction programme in Scatec’s history. We crossed the finish line for Kenhardt in South Africa, one of the world’s largest hybrid solar and battery storage plants, and are close to completing our construction projects in Brazil and Pakistan. In total these projects have generated all-time high D&C revenues of 8.2 billion in 2023, with a solid average gross margin of 12 percent,” he adds.
Scatec also focused on portfolio optimization through asset consolidation and capital recycling, securing NOK 2.7 billion of growth funding from strategic transactions. The company successfully divested four solar power plants and raised USD 202 million in debt and equity funding for Release, accelerating growth.
In January 2024, Scatec finalized refinancing terms with DNB, Nordea, and Swedbank for its USD 150 million Green Term Loan, extending its maturity to the fourth quarter of 2027.
Looking ahead to 2024, Scatec has laid the groundwork for further growth, initiating construction on a 273 MW solar project (Grootfontein) in South Africa, a 60 MW solar plant (first phase) in Botswana, and securing a 103 MW battery storage project in the first-ever battery storage tender in South Africa.
Scatec’s steadfast strategy remains centered on developing, building, owning, and operating renewable energy projects, emphasizing disciplined growth with attractive margins funded by internal capacity. Pilskog concludes, “The outlook for renewables has continued to strengthen with significant price drops of both solar modules and batteries last year. The reductions are driven by significant scaling up of capacity, technology development, and innovation. Renewables are more competitive than ever, which is especially the case in our focus markets.”
