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Scatec Solar to put off dividend payout amid COVID-19 market weakening

Solar power plant in Ukraine. Source: Scatec Solar (scatecsolar.com)

March 27 (Renewables Now) - Norway's Scatec Solar ASA (OSL:SSO) said its board of directors will propose to delay a planned dividend allocation due to the weakened capital market conditions in the wake of the COVID-19 crisis.

The solar developer and power producer said in a bourse filing on Thursday it will seek approval to distribute the dividend payout of NOK 1.05 (USD 0.100/EUR 0.091) per share “at a later stage” when the situation in the capital markets has improved. The move is intended to help the company keep its financial flexibility.

In line with the same goal, Scatec Solar announced it has secured USD 165 million (EUR 149.8m) in debt so as to reduce funding cost and support growth. More specifically, it has refinanced an existing revolving credit facility and received a new USD-90-million revolver with a three-year term, as well as an up to 18-month bank facility of USD 75 million. The new and expanded credit facilities were signed with a consortium of lenders including BNP Paribas, Nordea Bank and Swedbank. 

The fresh funds will allow the company to pursue “attractive project opportunities in the renewable markets,” its CEO Raymond Carlsen said.

Earlier this week, Scatec Solar announced that it is still too early to determine the impact of the coronavirus outbreak but added that travel constraints and local regulations have started to impact construction, commissioning and testing of some of its solar farms. It expects power generation in the first quarter to be in line with guidance.

(USD 1.0 = EUR 0.908)

(NOK 10 = USD 0.953/EUR 0.864)

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Veselina Petrova is one of Renewables Now's most experienced green energy writers. For several years she has been keeping track of game-changing events both large and small projects and across the globe.

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