Scatec Solar ASA: New target represents significant growth
Scatec Solar ASA has set a new target to reach 1,400 – 1,600 MW in operation and under construction by end of 2018. The new target, which represents significant growth from current levels, is announced on the occasion of the release of the company’s 2015 fourth quarter results.
Power production in fourth quarter increased 40 percent from the previous quarter to reach 151 GWh. This was achieved due to grid connection of new solar power plants and a seasonal higher production in South Africa. The 104 MW Red Hills plant in Utah – the biggest in the state – was successfully commissioned on time in December 2015, thus increasing the operating asset base to gross 383 MW, up from 219 MW at the end of 2014. In addition, the company’s plant in Honduras outperformed production forecast.
Referring to the positive outcomes, Scatec Solar’s CEO, Raymond Carlsen said “We report strong results for the fourth quarter 2015 mainly driven by revenue growth entering the summer season in South Africa and a full quarter of production of the 60 MW Agua Fria plant in Honduras. Looking ahead, we expect 2016 to be an exciting year as we accelerate the implementation of ongoing projects worldwide.”
Consolidated revenues reached NOK 267 million, increasing from NOK 194 million in the same period last year and up from NOK 204 million in the previous quarter. Consolidated EBITDA reached NOK 215 million, up from NOK 133 million last year and NOK 159 million in the previous quarter. Power production increased by more than 33% year on year. This is mainly due to normalised seasonal irradiation levels for the African projects in the period and the higher than expected irradiation for the Agua Fria plant in Honduras that was grid-connected last autumn. The plant produced more electricity than forecast.
Scatec Solar holds a solid financial position and last November a three-year NOK 500 million senior unsecured green bond was issued. By end of 2016, Scatec Solar expects to have 750-900 MW in operation and under construction.Scatec Solar develops, builds, owns and operates solar power plants. Scatec Solar’s proportionate share of cash flow to equity across these business activities reached NOK 58 million in the fourth quarter 2015, up from NOK 44 million in the same period last year and up from NOK 37 million in the previous quarter.
The current project backlog consists of 344 MW, project pipeline comprises several projects with a combined capacity of 1,174 MW, while the project opportunities now hold a combined capacity of 2,500 MW across Americas, Africa and MENA.