Scatec Solar's Q3 boosted by development & construction business

Norway-based Scatec Solar ASA (OSL:SSO) on Friday posted a net profit of NOK 407 million (USD 51m/EUR 43.4m) for the third quarter of 2017, a jump from NOK 11 million a year back.

Earnings before interest, tax, depreciation and amortisation (EBITDA) rose to NOK 595 million from NOK 222 million, while consolidated revenues grew to NOK 655 million from NOK 281 million.

The results were boosted by a net gain of NOK 375 million as a result of the deal signed with Norwegian oil group Statoil at the end of the third quarter for the creation of a solar joint venture in Brazil.

The solar park builder and operator also booked NOK 385 million of construction revenues in the quarter as construction started on projects in Malaysia and Honduras. The company's proportionate share of revenues rose to NOK 922 million from NOK 209 million in the third quarter of 2016.

"Our strong financial results reflect the value that has been created over the last few quarters," said chief executive Raymond Carlsen. "The Statoil partnership in Brazil and the Malaysian transaction clearly demonstrate the strength of our project portfolio and business model," the CEO added.

Scatec Solar currently has 394 MW under construction in Malaysia, Honduras and Brazil. The Malaysian solar plants, totalling 197 MW, reached financial close earlier in October. The plants in operation total 322 MW and are located in the Czech Republic, South Africa, Rwanda, Honduras and Jordan. The company's power generation in the third quarter was 157 GWh, similar to the year-ago figure excluding divestments.

In the first nine months of 2017, consolidated revenues rose to NOK 1.21 billion from NOK 722 million. Net profit was NOK 439 million, versus a loss of NOK 6 million in the first nine months of 2016.

(NOK 1 = USD 0.125/EUR 0.107)

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