Scatec Asa · OSL:SCATC
Scatec Asa — Q4 2024 Earnings Presentation
27 slides from Scatec Asa's earnings presentation, Jan 31, 2025
Slide 1: Q4 2024 Continued profitable growth
Q4 2024 Continued profitable growth CEO, Terje Pilskog & CFO, Hans Jakob Hegge
Slide 2: Disclaimer
Disclaimer The following presentation is being made only to, and is only directed at, persons to whom such presentation may lawfully be communicated (’relevant persons’). Any person who is not a relevant person should not rely, act or make assessment on the basis of this presentation or anything inc
Slide 3: FY 2024 Building a solid foundation for further growth
FY 2024 Building a solid foundation for further growth Growing EBITDA by 22% Growing portfolio by 73% Reducing corporate debt by 1 bn Proportionate EBITDA (full year), NOK million MW in construction and backlog (year end) Net corporate debt (year end), NOK billion 4,694 2,716 8.0 -13% +22% 7.0 3,845
Slide 4: Favourable price drops paves the way for attractive growth
Favourable price drops paves the way for attractive growth Solar PV module prices (USD/W) Global newbuild PV forecast excl. China (GW) 0.30 Forecast 0.25 -66% 363 378 332 0.20 291 0.15 184 0.10 145 0.05 0.00 Jan 22 Jul 22 Jan 23 Jul 23 Jan 24 Jul 24 Jan 25 2022 2023 2024 2025 2026 2027 Europe North
Slide 5: Key highlights
Q4 2024 Key highlights Key figures - proportionate Proportionate revenues up 69% and EBITDA up 70% Figures in brackets are same quarter last year Total revenues and other income Power production High construction activity with 12% D&C margin 2,684 1,138 NOK million GWh 305 MW solar & BESS started co
Slide 6: Strong EBITDA increase of 86% backed by robust production
Power Production Strong EBITDA increase of 86% backed by robust production Power Production, GWh EBITDA NOKm +48% +86% 1,138 1,352 44 -23 153 124 116 811 202 Kenhardt, -43 768 Mendubim, 380 Sukkur Kenhardt, 824 Mendubim, Sukkur -98 726 Q4’23 Divestments Q4’23 New Philippines Other Q4’24 Q4’23 Divest
Slide 7: Philippines: EBITDA +85% driven by increased volumes and Ancillary Services
Philippines EBITDA +85% driven by increased volumes and Ancillary Services Net Revenue, NOK million Power Production, GWh Ancillary Services Spot & Contract Spot volumes Contract volumes AS volumes • Total revenues +69% 285 to NOK 390 million 390 231 205 161 180 • Power Production +77% to 285 GWh 12
Slide 8: Strong progress with 12% underlying D&C-margin
Construction Strong progress with 12% underlying D&C-margin 7671 MW under construction following construction start in Brazil and Botswana Q4’24 financial performance 273 MW solar Grootfontein, South Africa NOK 1,038m D&C revenues 120 MW solar Tunisia 12% Gross D&C margin 120 MW solar Botswana phase
Slide 9: 9
9
Slide 10: Continuing to mature our growth projects
Growth Continuing to mature our growth projects 202 MW started construction 478 MW added to backlog Botswana South Africa • Started construction of 2nd phase in • 288 MW awarded in REIPPPP round seven 60 MW solar Botswana with 25-year PPA 288 MW solar • Building on historical track-record to 25-year
Slide 11: Attractive fundamentals driving projects forward
Attractive fundamentals driving projects forward… with D&C gross margins covering a substantial part of Scatec’s target equity investments 10.1 GW Backlog – 1.9 GW Under construction – 0.8 GW Near term portfolio – 6.9 GW 16% Other Romania, 190MW Solar NEW Urucuia, 142MW Solar NEW 6% Other Mercury 2,
Slide 12: Solid project equity returns from our integrated approach
…with solid project equity returns generated from our integrated approach Scatec project equity IRR build up - Average equity IRRs for projects under construction, backlog and mature pipeline projects • Strict value creation criteria drives all investment decisions IRR ~30% • Maximising returns thro
Slide 13: Improving the future for communities and individuals
Improving the future for communities and individuals 5.8 24 11 22 $22 GW million tonnes million thousand million renewable capacity GHG emissions households direct jobs invested in local installed, acquired and avoided powered annually created communities under construction 13
Slide 14: Financial review
Financial review Hans Jakob Hegge, CFO
Slide 15: EBITDA +70% to NOK 1.4 billion
Q4’24 Proportionate Financials EBITDA +70% to NOK 1.4 billion Revenues, NOK million EBITDA, NOK million • Power Production revenues +55% 2,684 1,375 driven by new projects, the 380 Philippines and sales gain 380 • D&C revenues +95% driven by 51 1,038 high construction activity with 1,591 33 7 808 33
Slide 16: Total revenues of NOK 1.2 billion
Q4’24 Consolidated Financials Total revenues of NOK 1.2 billion Revenues, NOK million EBITDA, NOK million 1,624 1,348 • Power sales revenues of NOK 0.9 billion in line with last year 532 532 1,153 • Net income from JVs +38% 256 816 186 driven by the Philippines • Total EBITDA of NOK 816 million 816
Slide 17: Total EBITDA increased by 22% to NOK 4.7 billion
FY 2024 Proportionate Financials Total EBITDA increased by 22% to NOK 4.7 billion Revenues, NOK million EBITDA, NOK million • Power Production revenues +33% 12,372 348 4,694 driven by new operating plants, 796 the Philippines and sales gains 3,845 184 348 673 • D&C revenues reflecting 8,177 7,853 co
Slide 18: Total EBITDA increased by 52% to NOK 5.4 billion
FY 2024 Consolidated Financials Total EBITDA increased by 52% to NOK 5.4 billion Revenues, NOK million EBITDA, NOK million • Power sales +29% driven by new 6,574 5,421 operating plants and sales gains 1,492 1,492 • Net income from JVs increased by 4,721 714 3,567 NOK 0.7 billion driven by the 1,276
Slide 19: Available liquidity increased by 1.6 billion to NOK 3.7 billion
Free cash on Group level Q4’24 Available liquidity increased by 1.6 billion to NOK 3.7 billion Q4’24 movements of the Group’s free cash & liquidity, NOK million Cash RCF -338 523 3,719 41 580 -972 912 23 -55 Proceeds from farm-down in 1,619 853 South Africa Positive EPC 2,151 USD 72m cash flow repai
Slide 20: Continuing to deleverage corporate debt in line with self-funded growth plan
Proportionate Continuing to deleverage corporate debt in line with our self-funded growth plan Proportionate net debt, NOK billion 22.1 21.9 • Net corporate debt reduced by 1.1 1.7 NOK 1.0 billion from repayment of RCF and increased cash 13.0 13.2 • Net increase of NOK 600 million for projects under
Slide 21: Reducing debt and extending maturity profile through new bond issue
Deleverage Reducing debt and extending maturity profile through new NOK ~1 billion bond issue • Corporate debt to be reduced with Corporate debt maturity profile, USD million no large maturities in 2025/2026 334 • New contemplated bond issue EUR 114m to 258 164 of NOK ~1,000 million be repaid 98 176
Slide 22: Outlook
Outlook Power Production • FY’25 Power Production estimate: 4,100 - 4,500 GWh • FY’25 EBITDA estimate: NOK 3,750 - 4,050 million • Q1’25 Power production estimate: 900 – 1,000 GWh • Q1’25 Philippines EBITDA estimate: NOK 170 – 230 million Development & Construction • Remaining D&C contract value: NO
Slide 23: Key takeaways
Key takeaways • Strong financial performance • Solid platform for further growth • Continuing to deleverage 23
Slide 24: Scatec
Scatec
Slide 25: Our asset portfolio
Our asset portfolio Plants in operation Capacity Economic Under construction Capacity Economic Project pipeline Capacity Share in % MW interest MW Interest MW South Africa 730 41% Grootfontein, South Africa 273 51% Solar 6,258 62% Brazil 693 33% Urucuia, Brazil 142 100% Wind 2,274 22% Philippines 67
Slide 26: Overview of change in net debt during the quarter - proportionate
Overview of change in net debt during the quarter- proportionate Project and Group level net interest bearing debt NOK billion Q3’24 Repayments New debt Change in Currency effects Q4’24 cash and other changes Project level -14.1 0.4 -1.1 -0.1 0.0 -14.9 Group level -8.0 0.8 0.0 0.6 -0.4 -7.0 Total -2
Slide 27: Overview of change in net debt during the year - proportionate
Overview of change in net debt during the year- proportionate Project and Group level net interest bearing debt NOK billion Q4’23 Repayments New debt Change in Currency effects Q4’24 cash and other changes Project level -12.8 1.4 -2.6 -0.3 -0.6 -14.9 Group level -8.0 2.6 -1.7 0.6 -0.5 -7.0 Total -20