Norwegian renewable power producer Scatec ASA (OSL:SCATC) almost doubled its consolidated net profit to NOK 335 million (USD 32.4m/EUR 32.7m) in the third quarter of 2022 and booked a record-high proportionate EBITDA, mainly thanks to its operations in the Philippines.
The Norwegian firm said on Thursday that it enjoyed increased power production and higher power prices in the Philippines, helping to achieve proportionate earnings before interest, tax, depreciation and amortisation (EBITDA) of NOK 850 million, around NOK 375 million of which came from the Philippines business.
Following the improvement and expectations for “above normal” fourth-quarter results in the Philippines, Scatec lifted its proportionate power production EBITDA guidance for 2022 to a range of between NOK 2.75 billion-2.85 billion from NOK 2.5 billion-2.7 billion.
In the third quarter, the company’s power plants produced 1,135 GWh of electricity, up from 1,065 GWh a year back. The increase resulted in a NOK-239-million rise in revenues from power production, which was partly offset by lower revenues in Ukraine and decreased power production and revenues in South Africa. Apart from power production, total revenues were boosted by increased income from development and construction activities in South Africa, Brazil, and Pakistan,
On a consolidated basis, Scatec’s third-quarter revenues amounted to NOK 1.16 billion. EBITDA was 7.1% higher than in the year-ago period, mainly thanks to the higher net income from joint ventures and associated companies operating in the Philippines.
| Amounts in NOK million |
Q3 2022 |
Q3 2021 |
| Proportionate revenues and other income |
1,818 |
1,196 |
| -- from Power Production |
1,311 |
1,072 |
| -- from Services |
82 |
69 |
| -- Development & Construction |
412 |
43 |
| -- Corporate |
13 |
11 |
| Proportionate EBITDA |
850 |
767 |
| Proportionate operating profit (loss) |
534 |
436 |
| Consolidated revenues and other income |
1,163 |
1,059 |
| Consolidated EBITDA |
886 |
827 |
| Consolidated operating profit (EBIT) |
645 |
558 |
| Consolidated profit (loss) |
335 |
169 |
“We had an all-time high EBITDA during the third quarter and our construction activities in South Africa, Brazil, and Pakistan are progressing well. We continue to focus on delivering on our strategy and see stable performance of our operating asset portfolio,” said CEO Terje Pilskog.
Scatec ended the third quarter with a project pipeline totalling 16 GW.
(NOK 10 = USD 0.967/EUR 0.977)
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