Scatec posts first-quarter losses due to Ukraine war

Scatec solar power plant in Ukraine (»Chigirin«, 55 MW)

Norwegian renewable energy power plant project developer and operator Scatec ASA posted an operating loss before interest and taxes (EBIT) of minus NOK 716 million ($75.2 million) and a net loss of NOK 1.06 billion ($105.7 million) in the first quarter of this year. The main reason was the war in Ukraine, where the company operates five solar power plants with 366 megawatts of capacity. While the plants are »95 percent operational,« the situation remains volatile. Scatec has therefore made an impairment of NOK 770 million and a credit loss provision of NOK 87 million. Seasonal fluctuations in hydropower plants in the Philippines were another negative factor.
Revenue in the quarter was NOK 1.01 billion ($105.2 million), down 13.7 percent from the previous quarter (NOK 1.17 billion) and up 5.9 percent from Q1 2021 (NOK 954 million). Earnings before interest, taxes, depreciation and amortization (EBITDA) were NOK 398 million, ($41.8 million), down 41.7 percent from the previous quarter (NOK 683 million) and 37.4 percent below the same quarter last year (NOK 636 million). The full-year forecast was adjusted, with the board now expecting EBITDA of NOK 2.3 to 2.6 billion; 2021 EBITDA was NOK 2.69 billion ($282.7 million).
Scatec achieved electricity production of about 2.14 terawatt-hours in the quarter, with installed capacity currently at about 3.5 gigawatts. The company is targeting 25 gigawatts by 2025.

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