Did Scatec’s (OB:SCATC) Floating Solar Deal Mark a New Chapter in Its Regional Growth Story?

• Scatec and its joint venture partner Aboitiz Renewables recently announced securing a 20-year Power Purchase Agreement for a 68 MW floating solar project in the Philippines through SNAP, their local partnership, as part of the country’s Green Energy Auction Program 4.
• This development illustrates how hybrid projects that integrate solar, hydropower, and battery storage can accelerate the Philippines’ renewable energy targets while broadening Scatec’s regional portfolio.
• We’ll explore how Scatec’s entry into large-scale floating solar and its enhanced financial flexibility after the green bond issue may impact its investment narrative.

Find companies with promising cash flow potential yet trading below their fair value.

Scatec Investment Narrative Recap

To invest in Scatec, you need to believe in the company’s ability to execute a diversified global growth strategy in renewables, efficiently deliver its sizeable project pipeline, and navigate risks tied to regulatory shifts and project delays. The recent Philippines floating solar project aligns with expansion goals but does not change the most important short term catalyst, timely execution of existing backlogs and achieving financial close on new projects. Supply chain hurdles and regulatory risks remain the top issues to monitor.

One directly relevant announcement is Scatec’s NOK 1,000 million green bond issue in early November, boosting the company’s financial flexibility to support upcoming projects like the Philippine floating solar plant. As capital access remains a catalyst for delivering on its growth pipeline, this move helps de-risk the funding side of the business, even as regulatory and execution risks continue.

However, some investors may underestimate the impact of ongoing regulatory and project delays that can quickly alter expectations...

Read the full narrative on Scatec (it's free!)

Scatec's outlook anticipates NOK10.0 billion in revenue and NOK877.1 million in earnings by 2028. This is based on an annual revenue growth rate of 36.0% and represents a decrease of NOK1.6 billion in earnings from the current NOK2.5 billion.

Uncover how Scatec's forecasts yield a NOK121.14 fair value, a 21% upside to its current price.

Exploring Other Perspectives

Private investors in the Simply Wall St Community see Scatec’s fair value between NOK 98.58 and NOK 121.14 across two forecasts. With ongoing execution risks, such varied outlooks remind you to consider all the angles before making decisions.

Explore 2 other fair value estimates on Scatec - why the stock might be worth just NOK98.58!

Build Your Own Scatec Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Scatec research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.
• Our free Scatec research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Scatec's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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