Q2 2026 Scatec ASA Earnings Call Transcript
Key Points
- Scatec ASA (FRA:66T) achieved commercial operation for three projects totaling 705 MW of solar and 16 MWh of battery storage, including the full Obelisk project ahead of schedule and below budget.
- The company reported strong D&C segment performance with a gross margin of 24%, driven by a contingency release from Obelisk Phase 2, and a record-high backlog supporting a doubling of generation capacity over the next 2-3 years.
- Scatec ASA (FRA:66T) has a robust near-term growth portfolio of 12.3 GW, including a 5x increase in battery storage capacity to 6.8 GWh, positioning it well for future value creation.
- The company is strengthening its financial position by refinancing its most expensive corporate bond with a new NOK1 billion issue at improved terms, reducing financing costs and extending maturity to 2031.
- Scatec ASA (FRA:66T) is expanding into promising markets like Romania, with a portfolio of solar, wind, and storage projects backed by EU-funded CFD schemes, offering contracted revenues and merchant upside.
- Power production revenues decreased by 4% year-on-year, impacted by lower hydrology in the Philippines and nonrecurring effects in Ukraine and South Africa.
- The company lowered its full-year power production guidance by 50 GWh due to expected lower hydrology in the Philippines, despite maintaining EBITDA guidance.
- Consolidated net interest-bearing debt increased due to reduced cash from working capital changes and investments, while total liquidity declined on a consolidated basis.
- The D&C segment's underlying gross margin, excluding contingency releases, was only 11%, below the 10-12% target range, indicating reliance on one-off gains.
- Scatec ASA (FRA:66T) faces uncertainty in Egypt green hydrogen projects, awaiting EU regulatory clarifications, and potential delays in financial close for new projects due to lender processes.
Good morning, and welcome to our second quarter presentation for 2026. The second quarter has been a good quarter with several important milestones that they have been achieving. We continue to deliver on our strategy to drive value-creating growth at a high pace across our geographies. So during the quarter, we have continued to move projects into operation.
We have started construction of new projects. And we have also new projects into backlog. And we continue to see demand for renewable energy continuing to grow. And Scatec is operating in countries with strong and increasing underlying demand for clean, reliable and affordable renewable energy.
And renewable energy is the most competitive source of energy in the markets where we are operating. And this is based on continued cost reductions and technology innovations across all the technologies, solar, wind and batteries. And based on this, we can deliver not only intermittent energy but also flexible energy and baseload energy at competitive prices in the markets where we are
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