Norway-based renewable energy solutions provider Scatec posted revenue of NOK1.37 billion (~$147.3 million) in the second quarter (Q2) of 2026, up 4% year-over-year (YoY) from NOK1.32 billion (~$141.6 million).

Earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at NOK824 million (~$88.65 million), down 20% YoY from NOK1.03 billion (~$110.5 million).

The company’s profit after tax (PAT) declined sharply to NOK157 million (~$17 million) from NOK314 million (~$33.6 million) a year earlier. Scatec attributed the drop in PAT to higher financing costs, lower foreign exchange gains, weaker EBITDA, and higher tax expenses.

The decline in EBITDA was primarily due to the absence of a NOK231 million (~$25.41 million) one-off tariff benefit recognized in the Philippines in Q2 2025. Revenue growth was partly driven by NOK255 million (~$28.05 million) in lower margin construction revenue from the Lyra joint venture in South Africa.

In Q1 2026, the company reported revenue of NOK1.64 billion (~$177 million), down 31.3% YoY from NOK2.39 billion (~$258 million).

1H 2026

Scatec reported revenue of NOK2.4 billion (~$257 million) in the first half (1H) of 2026, down 24% YoY from NOK3.13 billion (~$336.74 million).

EBITDA for the period stood at NOK1.55 billion (~$167.1 million), down 39% YoY from NOK2.53 billion (~$272.4 million).

The company’s PAT during the period nosedived to NOK349 million (~$37.54 million) after clocking a profit of NOK1.08 billion (~$116 million) in 1H 2025.

Business Updates

Scatec’s power production rose to 1,135 GWh in Q2 2026 from 940 GWh a year earlier, supported by new projects in Botswana, South Africa, Tunisia, and Egypt. Production reached 2,181 GWh in 1H 2026, up from 1,918 GWh in 1H 2025.

The company began construction of the 120 MW Sidi Bouzid II solar project in Tunisia and the 77 MW Urleasca onshore wind project in Romania during the quarter. Development and construction activity also included progress at the Obelisk project in Egypt, Dobrun and Sadova in Romania, and Thakadu in South Africa.

Its development and construction business reported a 24% gross margin in Q2 2026, above the guided range of 10% to 12%, with an EBITDA of NOK234 million (~$25.2 million).

Scatec advanced the 89 MW/178 MWh Buciumi battery energy storage project in Romania to its backlog. Projects under construction and in the backlog totaled 6.6 GW of generation capacity and 5.3 GWh of storage capacity.

Terje Pilskog, CEO, said the company expects to double its generation capacity and increase battery storage capacity fivefold over the next two to three years, supported by its record portfolio growth. Scatec expects the Damara, Energy Valley, and Shadwan projects in Egypt to reach financial close and begin construction within six months.

During Q2, Scatec signed an agreement with the National Bank of Egypt for a 20% equity stake in the Obelisk project, with the bank committing $24 million. Scatec retained majority control and a 40% economic interest.

The 563 MW second phase of the Obelisk project in Egypt, the Sidi Bouzid and Tozeur projects in Tunisia, the 142 MW Rio Urucuia solar project in Brazil, and the 16 MWh Magat BESS 2 project in the Philippines commenced operations during 1H 2026. Obelisk reached full commercial operation ahead of schedule and below budget. Scatec invested NOK769 million (~$82.73 million) in growth projects during the period.

Its gross corporate interest-bearing debt declined to NOK6.4 billion (~$688.55 million) at the end of Q2 from NOK7.7 billion (~$828.41 million) a year earlier. The company also signed two green revolving credit facilities totaling $350 million (~$37.65 million).

Scatec announced an expected NOK1 billion (~$107.6 million) bond issue to refinance its most expensive corporate debt.

Outlook

Scatec maintained its 2026 power production EBITDA guidance at NOK3.6 billion (~$387.31 million) to NOK3.9 billion (~$419.6 million) and expects proportionate power production of 5,050 GWh to 5,350 GWh.

For Q3, Scatec expects production of 1.5 TWh to 1.6 TWh and Philippines EBITDA of NOK320 million (~$34.43 million) to NOK420 million (~$45.2 million).

Pilskog also cited potential El Niño-related hydropower risks in the Philippines, suggesting that higher prices of energy and ancillary services could partly offset lower generation.

The company’s remaining development and construction contract value stood at about NOK3.8 billion (~$409 million), with an expected gross margin of 10% to 12%.

Scatec expects an EBITDA of negative NOK125 million (~$13.45 million) to NOK135 million (~$14.52 million) in 2026. By 2030, it targets average annual equity investments of NOK1 billion (~$107.6 million), gross corporate debt of NOK4 billion (~$430.34 million), and NOK3.4 billion (~$365.8 million) in asset sale proceeds.

In February, Scatec secured financing for its 130 MW Barzalosa solar project in Colombia.