Norwegian independent power producer (IPP) Scatec has been impacted by an impairment loss from its solar PV plants and intangible assets in Ukraine and Pakistan during its third quarter results for 2026.
The conflict in Ukraine and uncertainty around cash flow in Pakistan (due to a delay in the “true-up” process with Pakistani regulators) mean Scatec has recognised impairments of NOK1,150 million (US$124.6 million) on a consolidated basis and NOK1,066 million on a proportionate basis. “The impairments reflect increased cash flow uncertainties, country risk premiums and long-term interest rates,” the company said.
Try Premium for just $1
- Full premium access for the first month at only $1
- Converts to an annual rate after 30 days unless cancelled
- Cancel anytime during the trial period
Premium Benefits
- Expert industry analysis and interviews
- Digital access to PV Tech Power journal
- Exclusive event discounts
Or get the full Premium subscription right away
Or continue reading this article for free
Across the four operational units (Power Production, Services, Development & Construction, and Corporate), Q3 consolidated revenues were NOK1,677 million, up slightly on the previous quarter, and 55% up on the equivalent period last year.
Consolidated EBITDA (earnings before interest, taxes, depreciation and amortisation) was NOK1,135 million and the group has posted a year-to-date loss of NOK1.484 billion, compared to a profit of NOK987 million for fiscal year (FY) 2025.
Proportionate revenues for Q3 2026 were steady at NOK 2,267 million, compared to NOK2,286 million in Q2, down from NOK2,953 million in Q3 2025.
Power production revenues have grown slightly to NOK 1,301 million for the quarter, in line with total proportionate power production from Scatec’s power generation facilities, which rose to 1,469 GWh, up from 1,135 GWh last quarter. The company says the growth is caused by new power plants coming into operation.
The Development & Construction (D&C) segment of the business reported revenues of NOK948 million, down from NOK1,769 in Q3 2025. A like-for-like comparison of EBITDA in the same period shows growth to NOK 168 million from NOK135 million.
Revenues in the same quarter last year were mainly driven by high activity on the Obelisk project, which began commercial operations in August. The strong EBITDA margin this quarter was positively impacted by NOK140 million in close-out effects related to the project, the company says, including a contingency release of NOK100 million. Total contingency releases in 2026 amount to NOK340 million.
“In the third quarter, we continued to deliver on our growth strategy, with high construction activity, new assets increasing production by 22% and several important milestones reached. We are also facing challenges in some markets. In Ukraine, attacks on energy infrastructure continue to disrupt operations, with employee safety our priority. In the Philippines, the suspension of the reserves market will affect near-term earnings, but demand for ancillary services remains strong and we expect a limited long-term impact,” Scatec CEO Terje Pilskog said.
Scatec statements cite several occurrences of note for the period. It has begun construction of the Dandara project, a 569MW solar PV co-located with 100MWh BESS facility in Egypt, and earlier this month, Scatec and the European Bank for Reconstruction and Development (EBRD) established a US$221 million renewable energy investment platform for Egypt, from which the two organisations will own 51% of the 900MW Shadwan project.
The company said it has secured US$150 million in equity bridge loans for the Energy Valley and Shadwan projects, and the Development & Construction unit of the business holds remaining contract values of NOK10.5 billion, up from NOK6.7 billion.
The company has successfully placed NOK1.5 billion in bonds with investors on better terms to refinance its 2023 bond issue.
The company has predicted power production for FY 2026 of between 4.95-5.15 TWh, and a remaining D&C contract value of NOK10.5 billion for projects under construction, with gross margins on the latter of between 10% and 12%.
For the period 2027-2030, Scatec ASA has refined its roadmap to include doubling the average annual equity investment to NOK2 billion, and realising “at least NOK3.4 billion from divestment of assets and farm-downs”.
The company will renew its focus on solar PV, BESS and onshore standalone and hybrid wind energy. “Scatec is entering its next growth phase with a record-high portfolio that provides strong, visible near-term growth. Our integrated business model continues to create value across development, construction, ownership, and operations. […] We enter the final quarter of the year with strong momentum and a clear strategic direction,” Pilskog said.
