Norwegian independent power producer (IPP) Scatec has reported stable financial results in the second quarter of 2025, with revenue holding steady at NOK2.3 billion (US$220 million).
This figure is consistent wth the NOK2.39 billion (US$230 million) reported in the first quarter of this year, and represents a 51% year-on-year increase compared to the revenue reported in the second quarter of 2024.
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Many of the company’s underlying performance metrics have remained stable – such as total power generation, which hit 940GWh in the second quarter, compared to 979GWh in the first quarter – and Scatec acknowledged that some of its positive performance was driven by the retroactive approval of ancillary services contract rates in the Philippines, rather than the commissioning of new projects.
The company’s power production revenue has remained high for a year now, posting NOK1.3 billion (US$130 million) in revenue from power facilities in the second quarter, marking the fourth quarter that these revenues have exceeded NOK1.1 billion (US$110 million). Revenue from power production activities accounted for more than half of the company’s total revenue, as shown in the graph below.
The graph also shows that the company’s development and construction (D&C) work has increased in profitability this year, with earnings from D&C work increasing from NOK26 million (US$2.54 million) to NOK49 million (US$4.79 million) from one quarter to the next.
Indeed, in the last quarter, the company has commissioned new solar projects with a combined capacity of 285MW – split between 225MW of capacity in South Africa and 60MW of capacity in Botswana – as it continues to expand its operations.
Scatec’s project portfolio is shown in the graph below, split between projects in operation, under construction and in its backlog.
The most striking change compared to the previous month is the addition of almost 1GW of solar capacity to its South African backlog, driven largely by the government’s award of an 846MW solar project in the seventh round of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) in July.
The company noted that the award of this project, plus a 123MW/492MWh battery energy storage system (BESS), also in South Africa, has driven its total backlog to 3.2GW of clean energy capacity, an all-time high.
From South Africa to Egypt
The award of new capacity for the company’s South African operations will be a positive development for Scatec, considering its net production from its solar portfolio in the country has now declined for four consecutive quarters.
Net production from South African solar projects has fallen from 150GWh in the third quarter of 2024 to 116GWh in the second quarter of 2025, and the company’s South African solar portfolio has lost its spot as the most productive among its global operations. This has followed the divestment from a number of South African solar projects, including the Kalkbult and Dreunberg projects, at the end of 2024, which wiped around 190MW of capacity from the company’s books.
As shown in the graph below, Egyptian solar projects produced the most electricity in the second quarter of the year, reaching a total output of 139GWh, matching the 139GWh of output recorded in the second quarter of 2024, the last time that Egyptian solar output exceeded that of South Africa.
Egypt may become an even more important part of the company’s portfolio moving forward, as it has reached financial close for the 1.1GW Obelisk solar project, which is co-located with a 100MW/200MWh BESS. The company has also signed a power purchase agreement (PPA) for 900MW of wind capacity in the country, suggesting Egypt will be a country of focus for Scatec in the coming years.
“We continue to deliver strong financial results across all segments, while adding quality projects to our backlog and further strengthening our capital structure,” said CEO Terje Pilskog. “This quarter’s results confirm the resilience of our business platform and our ability to scale profitably.”
Looking ahead, the company expects to hit many of the same financial targets that it predicted in its Q1 results, expecting full-year earnings to reach a peak of NOK4.45 billion (US$430 million) and deliver a gross margin of 10-12% for project currently under construction. However, since the first quarter, Scatec has revised down its forecasts for full-year power generation marginally, from the 4.1-4.5TWh predicted in the first quarter to 4-4.3TWh predicted today.
