Scatec posted an improved first-quarter financial performance, boosted by the completion of new solar projects and the closing of its acquisition of hydropower developer SN Power.
The Norway-headquartered independent power producer recorded revenues of NOK1.01 billion (US$121.6 million), up 17% year-on-year, while earnings jumped 83% to NOK 636 million (US$76.6 million).
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The results were driven by the company’s power production segment, which saw its capacity increase by 1,461MW on year-end 2020, while revenues and earnings from solar plants “remained stable” compared to the same quarter last year.
With activity from Scatec’s development and construction unit shrinking during Q1, the power production segment accounted for more than 90% of the company’s total revenues for the quarter.
“In our first quarter as a broader renewable company, we are pleased to report stable operations as well as strong growth in power production and cash flow,” said Raymond Carlsen, CEO of Scatec.
This year will see Scatec break ground on solar projects in markets such as Brazil, Tunisia, Pakistan and South Africa. The company’s under-construction PV portfolio has a combined capacity of 479MW, while its backlog currently totals 641MW. With COVID-19 impacting markets where the firm develops projects, it said it expects some delays in energising some of the plants.
The positive financial results follow publication of the company’s new expansion plan that will see it invest NOK100 billion (US$11.7 billion) and aim to reach a 15GW renewables portfolio by 2025. More than 5GW of those additions are expected to be solar PV.
As well as Brazil, Vietnam and South Africa, Scatec is aiming to increase its solar presence in India, with the company currently on the lookout for partnerships in the country. Terje Pilskog, EVP of solar and wind project development at Scatec, told PV Tech last month that the firm is looking to develop its own solar portfolio and enter collaborations with developers that already have projects installed in the country.
While there has been limited information to date regarding Scatec’s plans to colocate floating solar projects with SN Power hydropower facilities, the company revealed in its Q1 results presentation that it has an opportunity to add hydro capacity in Africa and install a floating PV plant on the reservoir next to it.