Scatec's Q4 Success: A Green Energy Powerhouse

Scatec ASA, a leading renewable energy solutions provider, has reported strong financial results for the fourth quarter of 2023, demonstrating the company's commitment to disciplined growth and attractive margins. With a focus on developing, building, owning, and operating renewable energy projects, Scatec has successfully capitalized on the growing demand for clean energy and the decreasing prices of solar modules and batteries.

In the fourth quarter, Scatec reported proportionate revenues of NOK 1.7 billion (1.8) and an EBITDA of NOK 808 million (786), driven by high construction activity. The company's largest construction program in history, which included the completion of the Kenhardt hybrid solar and battery storage plant in South Africa, as well as projects in Brazil and Pakistan, generated all-time high D&C revenues of NOK 8.2 billion in 2023, with a solid average gross margin of 12 percent.

Scatec's strategic focus on renewable energy has contributed significantly to its financial performance and long-term growth prospects. The company's commitment to disciplined growth with attractive margins, funded by internal capacity, has enabled it to optimize its portfolio and capitalize on attractive opportunities within solar as component prices decrease. Scatec's strong financial position and ability to manage its debt levels effectively have been demonstrated through successful refinancing efforts, such as the extension of its USD 150 million Green Term Loan maturity to the fourth quarter of 2027.

Looking ahead to 2024 and beyond, Scatec has laid the foundation for further growth with several promising projects and opportunities. The company has started initial construction works for a 273 MW solar project (Grootfontein) in South Africa and a 60 MW solar plant (first phase) in Botswana. Additionally, Scatec was awarded a battery storage project of 103 MW in the first-ever battery storage tender in South Africa. These projects align with Scatec's focus on growing renewables and optimizing its portfolio, as battery storage is an essential component for grid stability and maximizing renewable energy generation.

Scatec's commitment to disciplined growth with attractive margins, funded by internal capacity, has positioned the company to capitalize on the significant price drops in solar modules and batteries. By focusing on growing renewables and optimizing its portfolio, Scatec is well-positioned to maintain its competitive edge in the renewable energy sector and continue its strong financial performance.



In conclusion, Scatec's strong financial performance in the fourth quarter of 2023, driven by its commitment to disciplined growth with attractive margins and a focus on renewable energy, positions the company for continued success in 2024 and beyond. With a solid pipeline of projects and attractive opportunities in the solar sector, Scatec is well-equipped to capitalize on the decreasing prices of solar modules and batteries and maintain its competitive edge in the renewable energy sector.