Renewable energy producer Scatec has booked impairments of NOK 1,150 million (about US$124.6 million) on assets in Ukraine and Pakistan, pushing it to a third-quarter net loss even as new plants lifted power production by 22%.
Impairments drive the loss
In its third-quarter report, published on 30 October, Scatec said the impairments total NOK 1,150 million on a consolidated basis and NOK 1,066 million on a proportionate basis. Both relate to its assets in Ukraine and Pakistan. PV Tech reports that they cover solar plants and intangible assets and reflect higher cash flow uncertainty, country risk premiums and long-term interest rates.
As a result, Scatec reported a net loss of NOK 1,135 million for the quarter, compared with a profit of NOK 5 million a year earlier.
"In Ukraine, attacks on energy infrastructure continue to disrupt operations, with employee safety our priority," said Terje Pilskog, chief executive of Scatec.
Growth underneath the write-down
The operating picture was stronger. Consolidated revenues rose to NOK 1,677 million from NOK 1,080 million, and proportionate power production increased to 1,469 GWh from 1,202 GWh a year earlier, as new assets came online.
Scatec also started construction on the first phase of its Dandara project in Egypt, which combines 569 MW of solar with a 100 MWh battery. The remaining contract value in its development and construction business stood at NOK 10.5 billion.
"Scatec is entering its next growth phase with a record-high portfolio that provides strong, visible near-term growth," Pilskog said.
Guidance trimmed
The company guided 2026 power production at 4.95 to 5.15 TWh and cut its proportionate EBITDA guidance by NOK 300 million to NOK 3,300 to 3,600 million. Of that cut, NOK 80 million comes from the suspension of the reserves market in the Philippines.
Targets to 2030
For 2027 to 2030, Scatec aims to double its average annual equity investment to NOK 2 billion and to lift annual cash flow to equity to more than NOK 2.5 billion from 2030. It plans to reduce corporate interest-bearing debt to NOK 4 billion and to raise at least NOK 3.4 billion through divestments and farm-downs, while staying self-funded and focused on solar, battery storage and onshore wind.
Why it matters
Scatec's quarter shows two sides of building renewables in emerging and frontier markets. Its pipeline in places like Egypt is growing fast and combines solar with storage from the start. At the same time, war damage in Ukraine and regulatory delays elsewhere can wipe out a quarter's profit in one line of the accounts.
What it means for European developers
For European companies looking at Ukraine's reconstruction or at high-growth markets in Africa and Asia, the lesson is to price country risk and currency risk explicitly and to expect lenders and investors to do the same. Higher risk premiums reduce asset values even when plants keep running. At the same time, Scatec's growth targets show that large solar and storage pipelines outside Europe are still attracting capital, as long as companies can recycle money through farm-downs and keep corporate debt in check.
Source: Scatec third-quarter 2026 report, 30 October 2026; PV Tech, 30 October 2026.
