Scatec ASA (OSL:SCATC)
kr 98.35 -0.35 (-0.35%) Market Cap: 15.62 Bil Enterprise Value: 39.84 Bil PE Ratio: 7.08 PB Ratio: 1.52 GF Score: 93/100

Q4 2024 Scatec ASA Earnings Call Transcript

Jan 31, 2025 / 08:00AM GMT
Release Date Price: kr79.35 (-1.24%)

Key Points

Positve
  • Scatec ASA (FRA:66T) reported a 22% increase in total proportionate EBITDA for 2024, reaching NOK4.7 billion, driven by strong results in the Philippines and increased production from new plants.
  • The company has significantly increased its backlog and pipeline, with 2.7 gigawatts of projects under construction and in the backlog, marking a 73% increase from the previous year.
  • Scatec ASA (FRA:66T) reduced its net corporate debt by NOK1 billion during the quarter, primarily through proceeds from asset sales and refinancing.
  • The company achieved strong financial results in the fourth quarter, with proportionate revenues of NOK2.7 billion and an EBITDA of NOK1.4 billion, both up by approximately 70% compared to the same quarter last year.
  • Scatec ASA (FRA:66T) has a robust growth pipeline, with 90% related to core markets, and expects to bring these projects into backlog and construction during 2025.
Negative
  • The company is still awaiting approval from the Regulatory Commission in the Philippines for higher ancillary services prices, which affects revenue recognition.
  • Scatec ASA (FRA:66T) reported a net profit of NOK101 million negative for the quarter, indicating financial challenges despite strong operational performance.
  • The company has not disclosed the selected electrolyzer supplier for its hydrogen plant project in Egypt, leaving some uncertainty about the project's progress.
  • There is a lack of detailed guidance on the expected cash flow to equity from Power Production once the current backlog and projects under construction are fully invested.
  • Scatec ASA (FRA:66T) continues to face challenges in reducing contract volumes in the Philippines, with existing contracts expiring and no new contracts being entered into.
Terje Pilskog
Scatec ASA - Chief Executive Officer

Good morning, and welcome to our fourth quarter presentation. Today, we will take you through another strong quarter for Scatec. And I will also quickly reflect on 2024.

We leave a year of strong progress and profitable growth behind. The fourth quarter has also been eventful, and I'm pleased to say that we have delivered strong financial results. We have achieved important growth milestones, increasing our backlog and our pipeline, and we have continued to optimize our portfolio through divestments and refinancing of our projects, mainly in the Philippines. All of this enabling us to continue to progress on our self-funded growth plan. I will start by taking you through some of the highlights, both of the quarter and 2024, and then Hans Jakob will take you through the financials.

So 2024 has been a year of significant progress in implementing our strategy. We are building a solid foundation for further profitable growth, and I'm really proud of the achievements of our team during the year.

First of all, our total

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