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Financial review

Group – Proportionate financials

The 2019 proportionate revenues increased by 34% to NOK 6,341 million from 2018, mainly due to continued high activity in Development & Construction (D&C) and significant increase in revenues from Power Production. The growth in revenues and profitability during 2019 reflects increased power revenues driven by new solar plants starting commercial operations in Egypt, Malaysia, Mozambique and Ukraine, and increase in D&C activities compared to 2018.


The renewable energy market is expected to see continued strong growth with solar market volumes expected to grow by more than 30 % to 158 GW by 2022. most of the new capacity  is expected to be installed outside the OECD according to Bloomberg New Energy Finance (BNEF).

The outbreak of COVID-19 has triggered a global economic slowdown impacting all industries and BNEF has recently cut its global solar demand forecast for 2020 from the interval 121-152 GW to 108-143 GW. Even though the demand for electricity continue to grow in emerging markets, some of the near-term growth is expected to be pushed back in time and investments in renewable energy might see delays which could impact Scatec Solar negatively.

Scatec Solar’s strategic direction remains firm as the Company aims to continue delivering shareholder value and strong growth with a target of installed capacity of 4.5 GW by end 2021.

In September 2019, Scatec Solar raised its growth ambitions and updated its financial and operational targets:

  • Installed capacity of 4.5 GW in operation or under construction by end of 2021
  • Annual growth of 1.5 GW per year from 2022 onwards
  • Development & Construction segment gross margin of 12-14%
  • Average equity IRR on investments of 12-14%

The following key priorities is supporting the Company’s growth strategy:

  1. Efficiently execute the construction portfolio
  2. Secure additional growth in key regions
  3. Broaden commercial and technology scope
  4. Optimise asset portfolio through debt refinancing and selective asset rotation

The Company is utilising its solid track record and market position to further grow its business in new segments and to realise attractive project opportunities. Scatec Solar’s ability to delivery consistently over time combined with a positive market outlook, has further strengthened the Company’s position as a leading player in emerging markets.

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