Scatec ASA

Reported proportionate group revenues were NOK 1.6 billion and proportionate EBITDA was NOK 774 million. Consolidated revenues were NOK 1 billion versus NOK 1.8 billion a year earlier, and consolidated EBITDA was NOK 729 million versus NOK 1.5 billion a year earlier, with the drop mainly attributed to divestment gains in the prior-year quarter. Power production revenues were about NOK 929 million, with power generation of 1,046 GWh; D&C revenues were NOK 695 million and D&C EBITDA was NOK 100 million, including an NOK 80 million contingency release from Obelisk phase 1. In the Philippines, revenues were NOK 279 million and EBITDA was NOK 231 million. For the full year, power production guidance was set at 505 to 545 TWh, and full-year power production EBITDA was lowered by NOK 200 million to a midpoint of NOK 3.75 billion, mainly due to NOK 150 million of FX impact and a NOK 56 million Vietnam earn-out reversal. D&C gross margin guidance remained 10% to 12%, and corporate full-year EBITDA guidance remained negative NOK 125 million to negative NOK 135 million.

Terje Pilskog framed the quarter as evidence that Scatec is benefiting from a stronger market backdrop for renewables driven by energy security and cost competitiveness, not just sustainability. He repeatedly pointed to Obelisk in Egypt as proof of execution speed and project economics, saying it moved from PPA signing to operations in less than two years and could generate about $300 million in annual savings for Egypt. His tone was confident and upbeat, emphasizing an all-time high growth portfolio, more than 5 GW now under generation, and a self-funded path to further growth.

Hans Jakob Hegge highlighted that free cash flow ended at NOK 2.6 billion in the quarter, supported by NOK 94 million in distributions from power plants and NOK 72 million EBITDA from D&C and corporate, offset by NOK 195 million of growth investment, NOK 286 million of corporate debt repayment, and NOK 109 million of interest. He said gross corporate debt fell to NOK 6.5 billion after the vendor note repayment, while project gross debt rose by NOK 0.4 billion to NOK 19.5 billion due to new growth-project drawdowns; cash in SPVs increased by NOK 400 million to NOK 2.8 billion. He also said the RCF was refinanced from $230 million to $350 million, leaving total available liquidity at NOK 6.1 billion and supporting the near-term growth portfolio.

Analysts focused on the Obelisk transaction with the National Bank of Egypt, the reduced power production guidance, D&C margin guidance, debt trends, Philippines uncertainty, the Vietnam earn-out reversal, and FX sensitivity. Management said the National Bank of Egypt’s 20% stake is an equity investment on pre-agreed terms that de-risks the project, releases equity back to Scatec, and has no further accounting impact. On guidance, they cited later-than-expected recovery in Ukraine and uncertainty in the Philippines around El Nino, while stressing that FX could move either way and that the Philippines uncertainty is not only downside but could also be positive.