Scatec suffers Q4 loss, hit by higher financial costs

The Mocuba solar power plant in Mozambique. Source: Scatec Solar

Norway-based renewables developer Scatec ASA (OSL:SSO) on Friday reported a net loss of NOK 433 million (USD 43.4m/EUR 39.5m) for the fourth quarter of 2022, against a NOK-136-million profit a year ago.

The result was mainly blamed on increased financial expenses due to significant currency movements and increased interest rates.

Earnings before interest, tax, depreciation and amortisation (EBITDA) declined to NOK 689 million from NOK 775 million due to lower contribution from joint ventures as a result of lower water volumes in Laos and foreign currency effects, and to increased operating expenses.

The proportionate power production EBITDA, however, increased 7.6% to NOK 821 million, driven by higher power sales at higher prices in the Philippines.

Power production decreased to 979 GWh from 1,047 GWh, mainly due to lower production in Laos.

Some figures of the results are in the table below:

NOK million	Q4 2022	Q4 2021	2022	2021
Revenues (proportionate)	1,995	1,169	5,957	4,329
- Power Production	1,262	1,073	4,521	3,890
- Services	85	66	312	260
- Development & Construction	627	18	1,069	137
- Corporate	20	11	56	42
EBITDA	689	775	2,555	2,903
Profit/(loss) for the period	(433)	136	(1,228)	456

The company expects 2023 proportionate EBITDA of between NOK 2,700 million and NOK 3,000 million and proportionate production of 3,500 GWh to 3,900 GWh.

Scatec currently has 4.6 GW of renewable energy projects in operation and under construction on four continents and a project pipeline and backlog of 16.7 GW.

Yesterday, it signed a deal to sell its stake in the 258-MW Upington solar park in South Africa and plans to reinvest the proceeds into new clean energy projects.

(NOK 1 = USD 0.100/EUR 0.091)

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