Q2 2026 Scatec ASA Earnings Call

August 21, 2026

Speaker #1: By reducing CO2 emissions, in the range of 1.3 million tons annually. And again, this project is the evidence of the strength of the integrated business model.

Terje Pilskog: By reducing CO2 emissions in the range of 1.3 million tons annually. This project is evidence of the strength of the integrated business model. With the integrated business model, we are able to move swiftly from development and into construction. We are able to control the quality and the pace of construction during the execution phase, and we are able to extract value creation in a capital-efficient manner through the project. Obelisk reached COD ahead of schedule and below the construction budget. From our signing the PPA in September 2024, we took around 9 months to get to financial close and notice to proceed, 17 months to reach phase 1 COD, including 100% of the battery storage capacity, and 23 months to reach COD for the full plant.

Speaker #1: With the integrated business model, we are able to move swiftly from development and into construction. We're able to control the quality and the pace of construction during the execution phase, and we are able to extract value creation in a capital-efficient manner through the project.

Terje Pilskog: We have also moved new projects into backlog. We continue to see demand for renewable energy continuing to grow. Scatec is operating in countries with strong and increasing underlying demand for clean, reliable, and affordable renewable energy. Renewable energy is the most competitive source of energy in the markets where we are operating. This is based on continued cost reductions and technology innovations across all the technologies, solar, wind, and batteries. Based on this, we can deliver not only intermittent energy, but also flexible energy and base load energy at competitive prices in the markets where we are operating. Further, with the ongoing challenging situation in global energy markets, long-term predictability and energy security is increasing in importance, and this will also continue to drive the demand for renewables in our markets.

Speaker #1: We have also moved new projects into the backlog. And we continue to see demand for renewable energy continuing to grow. SCATEC is operating in countries with strong and increasing underlying demand for clean, reliable, and affordable renewable energy.

Speaker #1: So, Obelisk Reed COD, ahead of schedule, and below the construction budget. And from our signing the PPA in September 2024, we took around 9 months to get the financial close and notice to proceed, 17 months to reach phase one COD, including 100% of the battery storage capacity, and 23 months to reach COD for the full plant.

Speaker #1: Renewable energy is the most competitive source of energy in the markets where we are operating. This is based on continued cost reductions and technological innovations across all the technologies—solar, wind, and batteries. Based on this, we can deliver not only intermittent energy, but also flexible energy and baseload energy at competitive prices in the markets where we are operating.

Speaker #1: This is a remarkable achievement of our team, and also of our partners, and it's also evidence of the speed of deployment possible when it comes to renewables which is a strong benefit of renewables.

Terje Pilskog: This is a remarkable achievement of our team and also of our partners, and it is also evidence of the speed of deployment possible when it comes to renewables, which is a strong benefit of renewables. You will also see, based on our communicated numbers, the D&C margin that was communicated when we started the project was sufficient to cover the 40% equity stake that we currently have sold down to in the project. We are also, from that point of view, capital neutral. This is obviously before the additional value capture that we have achieved through strong and disciplined execution and the ability to also release contingency and reduce costs in the project. Looking forward, our intention is to apply the same model and the same approach to the next three projects that we have secured in Egypt.

Speaker #1: And you will also see, based on our communicated numbers, the NC margin that was communicated when we started the project was sufficient to cover the 40% equity stake that we currently have sold down to in the project.

Speaker #1: Further, with the ongoing challenging situation in global energy markets, long-term predictability and energy security are increasing in importance. This will also continue to drive demand for renewables in our markets.

Speaker #1: So we also, from that point of view, capital neutral. And this is obviously before the additional value capture that we have achieved through strong and disciplined execution and the ability to also release contingency and reduce costs in the project.

Speaker #1: As a result, we now see an intention to accelerate the energy transition for economic reasons. The case for renewables is becoming very strong and evident for key stakeholders, government officials, and decision makers in the markets where we are operating. We continue to see a clear intention to accelerate the transition towards renewable energy in these markets.

Terje Pilskog: As a result, we see the intention now to accelerate the energy transition for economic reasons. The case for renewables is becoming very strong and evident for key stakeholders and government officials and decision-makers in the markets where we are operating, and we continue to see the clear intention to accelerate the transition towards renewable energy in these markets. I will take you through the highlights of the quarter. Hans Jakob will take you through the financials, and then we will come back and take questions at the end. Our growth momentum continues, and during the quarter, we reached commercial operation for three projects totaling 705 MW of solar and 16 MWh of battery storage. A major milestone for us was reaching COD on the full Obelisk project, the phase two of the Obelisk project. This was done ahead of schedule and well within budget.

Speaker #1: And looking forward, our intention is to apply the same model and the same approach to the next three projects that we have secured in Egypt.

Speaker #1: So these projects are first of all, what we call the Dandara project, the project with the Egypt Aluminium, which is in principle a copy of the Obelisk project, 1.1 gigawatts and 200 megawatt-hours of batteries.

Terje Pilskog: These projects are, first of all, what we call the Dandara project, the project with the Aluminium Company of Egypt, which is in principle a copy of the Obelisk project, 1.1 gigawatts and 200 megawatt hours of batteries, where we deliver energy to Aluminium Company of Egypt, which is the largest aluminium producer in Egypt and the largest energy consumer in Egypt. This is the first project, and it is the first private PPA in Egypt that also has the sovereign guarantee backing. Then we have Energy Valley, where we signed the PPA in January this year. About 2 gigawatts of solar and 4 gigawatt hours of battery storage. This is a project where we will install battery storage at specific points in the grid where there is scarcity of grid capacity. On top of this project will also be able to deliver part of the energy on a 24/7 basis.

Speaker #1: So I will take you through the highlights of the quarter, then SACOF will take you through the financials, and we will come back and take questions at the end.

Speaker #1: Where we will deliver energy to Egypt Aluminium, which is the largest aluminium producer in Egypt, and the largest energy consumer in Egypt. So this is the first project, and it's the first private PPA in Egypt that also has a sovereign guarantee backing.

Speaker #1: Our growth momentum continues, and during the quarter we reached commercial operation for three projects, totaling 705 megawatts of solar and 16 megawatt-hours of battery storage.

Speaker #1: A major milestone for us was reaching COD on the full Obelisk Project, the Phase 2 of the Obelisk Project, and this was done ahead of schedule and well within budget.

Speaker #1: Then we have Energy Valley, where we signed the PPA in January this year, about 2 gigawatts of solar, and 4 gigawatt-hours of battery storage.

Speaker #1: And I will come back to this shortly. On financials, we delivered proportionate revenues of 2.3 billion and EBITDA of 1 billion. And in our D&C segment, we recognized revenues of 1.2 billion with an EBITDA of 234 million representing also and based on the gross margin of 24%.

Terje Pilskog: I will come back to this shortly. On financials, we delivered proportionate revenues of NOK 2.3 billion and EBITDA of NOK 1 billion. In our D&C segment, we recognized revenues of NOK 1.2 billion with an EBITDA of NOK 234 million, representing also and based on a gross margin of 74%. This strong result is again a demonstration of the integrated model, the strength of the integrated model, and the strength of our execution capabilities. We also have a record high backlog and near-term growth. With the current backlog that we have, we are in a position to double our generation capacity over the next two to three years. It is encouraging to see progress across all main technologies, solar, wind, and battery storage, also across multiple countries and multiple geographies.

Speaker #1: This is a project where we will install battery storage at specific points in the grid, where there is scarcity of grid capacity, and on top of this, this project will also be able to deliver part of the energy on a 24/7 basis.

Speaker #1: And finally, we also have the 900 megawatt Shadow One wind project. And all of these projects, the three projects, we have an intention to reach financial close and start up construction over the next 6 months.

Terje Pilskog: Finally, we also have the 900-megawatt Shadwan wind project. All of these projects, the three projects, we have an intention to reach financial close and start of construction over the next 6 months. This obviously represents a substantial pipeline that builds directly on the capabilities, the experiences, and the partnerships that we have been building in Egypt over the last couple of years. Power production came in at 1.1 terawatt hours in the quarter. This is up 21% from 940 gigawatt hours in the same quarter last year. The growth is primarily driven by new projects entering operations, which contributed to 278 gigawatt hours in the quarter. Over the last 12 months, a number of projects have reached operations, COD. We have Grootfontein in South Africa. We have the Mmadinare solar complex in Botswana.

Speaker #1: And this strong result is again a demonstration of the integrated model, the strength of the integrated model, and the strength of our execution capabilities.

Speaker #1: So this obviously represents a substantial pipeline that builds directly on the capabilities, the experiences, and the partnerships that we have been building in Egypt over the last couple of years.

Speaker #1: We also have a record-high backlog and near-term growth. With the current backlog that we have, we are in a position to double our generation capacity over the next two to three years.

Speaker #1: Power production came in at 1.1 terawatt-hours in the quarter. This is up to 21% from 940 gigawatt-hours in the same is primarily driven by new projects entering operations, which contributed to 278 gigawatt-hours in the quarter.

Speaker #1: And it is encouraging to see progress across all main technologies: solar, wind, and battery storage. Also, across multiple countries and multiple geographies. All of these technologies, as I said, will form part and an increasing part of future energy systems.

Terje Pilskog: All of these technologies, as I said, will form part, an increasing part, of the future energy systems. It is great to see that we continue to build experience, capabilities, and track record across all of these technologies. This morning, we also announced the intention to refinance our most expensive corporate financing, and this is in line with our strategy to continue to take down debt on corporate level and continue to reduce our financing costs. Reaching COD for the Obelisk project is a major milestone for us and obviously a very proud moment for us. Obelisk is the largest renewable energy project in Africa. We expect it to produce more than 3 TWh of energy annually, and we also expect it to contribute by reducing CO2 emissions in the range of 1.3 million tons annually.

Speaker #1: And over the last 12 months, a number of projects have reached operation COD. They have growth from time in South Africa, we have the Mandinara Solar Complex in Botswana, we have two projects in Tunisia, and obviously we also have the Obelisk project in Egypt.

Speaker #1: And it's great to see that we continue to build experience, capabilities, and a track record across all of these technologies. This morning, we also announced the intention to refinance our most expensive corporate financing, and this is in line with our strategy to continue to take down debt at the corporate level and continue to reduce our financing costs.

Terje Pilskog: We have two projects in Tunisia, Sidi Bouzid II and Tozeur, and obviously we also have the Obelisk project in Egypt. On the other side, we did see lower production from existing power plants in the Philippines, Ukraine, and South Africa, which partly offsets the contribution from those new projects. Turning to revenues, power production revenues came in slightly above NOK 1 billion, and this represents a 4% reduction relative to the same quarter last year after adjusting for the one-off effect that we had in the Philippines related to the tariff adjustment last year. New projects contributed then to NOK 83 million in revenues, and this was offset by a few specific non-recurring effects, especially in Ukraine and South Africa. In summary, the growth portfolio is now starting to contribute in a meaningful way.

Speaker #1: On the other side, we did see lower production from existing power plants in the Philippines, Ukraine, and South Africa, which partly offsets the contribution from those new projects.

Speaker #1: So, reaching COD for the Obelisk project is a major milestone for us, and obviously a very proud moment. Obelisk is the largest renewable energy project in Africa.

Speaker #1: Turning to revenues, power production revenues came in slightly above 1 billion, and this represents a 4% reduction relative to the same quarter last year, after adjusting for the one-off effect that we had in the Philippines, related to the tariff adjustment last year.

Speaker #1: We expect it to produce more than 3 terawatt-hours of energy annually, and we also expect it to contribute by reducing CO2 emissions in the range of 1.3 million tons annually.

Speaker #1: A new project contributed then to 83 million in revenues, and this was offset by a few specific non-recurring effects, especially in Ukraine, and South Africa.

Speaker #1: And again, this project is evidence of the strength of the integrated business model. With the integrated business model, we are able to move swiftly from development and into construction.

Terje Pilskog: This project is evidence of the strength of the integrated business model. With the integrated business model, we are able to move swiftly from development and into construction. We are able to control the quality and the pace of construction during the execution phase, and we are able to extract value creation in a capital-efficient manner through the project. Obelisk reached COD ahead of schedule and below the construction budget. From our signing the PPA in September 2024, we took around 9 months to get the financial close and notice to proceed, 17 months to reach phase 1 COD, including 100% of the battery storage capacity, and 23 months to reach COD for the full plant.

Speaker #1: So in summary, the growth portfolio is now starting to contribute in a meaningful way as more projects reach COD over the coming quarters, the new project contribution will continue to build, and we expect a growing and increasingly resilient generation base going forward.

Terje Pilskog: As more projects reach COD over the coming quarters, the new project contribution will continue to build, and we expect a growing and increasingly resilient generation base going forward. Let me now also make a couple of comments on our position in the Philippines through SN Aboitiz Power, our JV with the Aboitiz group. In the Philippines, we delivered a good quarter, and here we continue to prove the robustness of a hydropower and battery storage portfolio that we are having here. On volumes, the generation was lower due to hydrology and the early effects of the El Niño, with power produced only at 64 gigawatt hours relative to the 106 gigawatt hours that we had in Q2 last year.

Speaker #1: We were able to control the quality and the pace of construction during the execution phase, and we are able to extract value creation in a capital-efficient manner through the project.

Speaker #1: Let me now also make a couple of comments on our position in the Philippines, through SNAP, our JV with the Aboitiz Group, and in the Philippines, we delivered a good quarter and here we continue to prove the robustness of a hydropower and battery storage portfolio that we are having here.

Speaker #1: So Obelisk reached COD ahead of schedule and below the construction budget. And from our signing the PPA in September 2024, it took around nine months to get to financial close and notice to proceed.

Speaker #1: On volumes, the generation was lower due to hydrology and the early effects of the El Niño, with power produced only at 64 gigawatt-hours relative to the 106 gigawatt-hours that we had in Q2 last year.

Speaker #1: It took 17 months to reach Phase 1 COD, including 100% of the battery storage capacity, and 23 months to reach COD for the full plant. This is a remarkable achievement by our team and our partners.

Terje Pilskog: This is a remarkable achievement of our team and also of our partners, and it is also evidence of the speed of deployment possible when it comes to renewables, which is a strong benefit of renewables. You will also see based on our communicated numbers, the D&C margin that was communicated when we started the project was sufficient to cover the 40% equity stake that we currently have sold down to in the project. We are also, from that point of view, capital neutral. This is obviously before the additional value capture that we have achieved through strong and disciplined execution and the ability to also release contingency and reduce costs in the project. Looking forward, our intention is to apply the same model and the same approach to the next three projects that we have secured in Egypt.

Speaker #1: But despite significant lower water inflow and generation volumes, we're still able to generate 244 million in revenues in the quarter, relative to the 262 million in revenues that we had last year, in the same quarter, and we also had an EBITDA of 201 million in the quarter.

Terje Pilskog: Despite significant lower water inflow and generation volumes, we are still able to generate NOK 244 million in revenues in the quarter relative to the NOK 262 million in revenues that we had last year in the same quarter. We also had an EBITDA of NOK 201 million in the quarter. This speaks to the value of our flexible, diversified generation portfolio and ancillary services position and the merchant operations capabilities and the trading capabilities that we are having in SN Aboitiz Power. Ancillary services contributed to NOK 199 million in terms of revenues, while contract and spot energy revenues represented NOK 45 million. Also, spot prices in the quarter were significantly higher than what we had same quarter last year, with 9.6 pesos per kilowatt hour relative to 6 pesos per kilowatt hour last year. We are also seeing that prices in the ancillary services market continue to be strong during the quarter.

Speaker #1: And it's also evidence of the speed of deployment possible when it comes to renewables, which is a strong benefit of renewables. And we will also see, based on our communicated numbers, the D&C margin that was communicated when we started the project was sufficient to cover the 40% equity stake that we currently have sold down to in the project.

Speaker #1: And this speaks to the value of our flexible diversified generation portfolio, that's ancillary services position, and the merchant operations capabilities and the trading capabilities that we are having in SNAP.

Speaker #1: So we are also, from that point of view, capital neutral. And this is obviously before the additional value capture that we have achieved through strong and disciplined execution, and the ability to also release contingency and reduce costs in the project.

Speaker #1: Ancillary services contributed to 199 million, in terms of revenues, while contract and spot energy revenues represented 45 million. Also, spot prices in the quarter were significantly higher than what we had same quarter last year, with 9.6 pesos per kilowatt-hour relative to 6 pesos per kilowatt-hour last year.

Speaker #1: And looking forward, our intention is to apply the same model and the same approach to the next three projects that we have secured in Egypt.

Speaker #1: So, these projects are, first of all, what we call the Dandara project, the project with Egypt Aluminium, which is in principle a copy of the Obelisk project: 1.1 gigawatts and 200 megawatt-hours of batteries.

Terje Pilskog: These projects are, first of all, what we call the Damara project, the project with the Egyptalum, which is in principle a copy of the Obelisk project, 1.1 gigawatts and 200 megawatt hours of batteries, where we will deliver energy to Egyptalum, which is the largest aluminum producer in Egypt and the largest energy consumer in Egypt. This is the first product, and it is the first private PPA in Egypt that also has the sovereign guarantee backing. Then we have Energy Valley, where we signed the PPA in January this year, about 2 gigawatts of solar and 4 gigawatt hours of battery storage. This is a project where we will install battery storage at specific points in the grid where there is scarcity of grid capacity.

Speaker #1: And we also see in that prices in the ancillary services market continue to be strong during the quarter. Obviously, we will come back to the outlook, but the probability of a strong El Niño going into Q4 and also into 2027 is still quite high.

Terje Pilskog: Obviously, we will come back to the outlook, but the probability of a strong El Niño going into Q4 and also into 2027 is still quite high. On the other side, we also expect that prices will continue to stay elevated across both energy and ancillary services, and also by the end of the year, we are targeting to add more battery storage capacity to the portfolio. Turning to D&C, we have also had very strong performance in the D&C segment in the quarter. In terms of the construction portfolio, we currently have 792 megawatts of solar, 77 megawatts of wind based on the announcement that we did yesterday evening, and 571 megawatt hours of battery storage under construction across six markets. This is high quality and well-diversified portfolio.

Speaker #1: Where we deliver energy to Egypt Aluminium which is the largest aluminium producer in Egypt and the largest energy consumer in Egypt. So so this is the this is the first project and it's the first private PPA in Egypt that also has a sovereign guarantee backing.

Speaker #1: On the other side, we also expect that prices will continue to stay elevated across both energy and ancillary services, and also by the end of the year, we are targeting to add more battery storage capacity to the portfolio.

Speaker #1: Then we have Energy Valley, where we signed the PPA in January this year—about 2 gigawatts of solar and 4 gigawatt-hours of battery storage.

Speaker #1: So then turning to DNC, we also had, or we have had, very strong performance in the DNC segment in the quarter. In terms of the construction portfolio, we currently have 792 megawatts of solar, 77 megawatts of wind, based on the announcement that we did yesterday evening, and 571 megawatt-hours of battery storage and the construction across 6 markets.

Speaker #1: This is a project where we will install battery storage at specific points in the grid where there is scarcity of grid capacity. On top of this, the project will also be able to deliver part of the energy on a 24/7 basis.

Terje Pilskog: On top of this project will also be able to deliver part of the energy on a 24/7 basis. Finally, we also have the 900 megawatts Shadwan wind project. All of these projects, the three projects, we have an intention to reach financial close and start construction over the next 6 months. This obviously represents a substantial pipeline that builds directly on the capabilities, the experiences, and the partnerships that we have been building in Egypt over the last couple of years. Power production came in at 1.1 terawatt hours in the quarter. This is up 21% from 940 gigawatt hours in the same quarter last year. The growth is primarily driven by new projects entering operations, which contributed to 278 gigawatt hours in the quarter. Over the last 12 months, a number of projects have reached operation COD.

Speaker #1: And finally, we also have the 900 megawatt Shadwan wind project. And all of these projects, the 3 projects, we have an intention to reach financial close and start of construction over the next 6 months.

Speaker #1: This is a high-quality and well-diversified portfolio. On financial performance, we delivered a DNC gross margin of 24%, including the contingency release in Obelisk, and with the underlying margin still at a solid 11%.

Terje Pilskog: On financial performance, we delivered a D&C gross margin of 24%, including the contingency release in Obelisk and with the underlying margin still at a solid 11%. On project milestones, Obelisk Phase 2, Rio Urucuia, and also Mogobe BESS 2 all reached commercial operation during the quarter, while Sidi Bouzid II in Tunisia and Urleasca in Romania have started construction, adding 120 MW of solar and 77 MW of wind to our construction portfolio. The remaining contract portfolio has a value of NOK 3.8 billion, so we still have significant secured revenue outlook in the D&C segment, and we continue to expect 10% to 12% at least gross margins across the portfolio.

Speaker #1: On project milestones, Obelisk phase 2, Rio Urucuya, and also Magat Best 2 all reached commercial operation during the quarter, while CDBC 2 in Tunisia and Uriasca in Romania have started construction.

Speaker #1: Power production came in at 1.1 terawatt-hours in the quarter. This is up 21% from 940 gigawatt-hours in the same quarter last year.

Speaker #1: Adding 120 megawatts of solar, and 77 megawatts of wind to our construction portfolio. And now the remaining contract portfolio has a value of 3.8 billion, so we still have significant secured revenue outlook in the DNC segment, and we continue to expect 10 to 12% at least gross margins across the portfolio.

Speaker #1: And the growth is primarily driven by new projects entering operations, which contributed 278 gigawatt-hours in the quarter. Over the last 12 months, a number of projects have reached operation COD.

Speaker #1: We have growth from time in South Africa. We have the Mandinara solar complex in Botswana, we have two projects in Tunisia, and obviously, we also have the Obelisk project in Egypt.

Terje Pilskog: We have Grootfontein in South Africa. We have the Mmadinare Solar Cluster in Botswana. We have two projects in Tunisia, Sidi Bouzid and Tozeur, and obviously we also have the Obelisk project in Egypt. On the other side, we did see lower production from existing power plants in the Philippines, Ukraine, and South Africa, which partly offsets the contribution from those new projects. Turning to revenues, power production revenues came in slightly above NOK 1 billion, and this represents a 4% reduction relative to the same quarter last year after adjusting for the one-off effects that we had in the Philippines related to the tariff adjustment last year. New projects contributed then to NOK 83 million in revenues, and this was offset by a few specific non-recurring effects, especially in Ukraine and South Africa. In summary, the growth portfolio is now starting to contribute in a meaningful way.

Speaker #1: And looking ahead now, we expect Mogobe BES and Binga BES, so the two BES projects in South Africa, and in the Philippines, to reach commercial operation by the end of this year, with 4 additional projects to follow in the first half of 2027 across the Philippines, Colombia, and also South Africa.

Terje Pilskog: Looking ahead now, we expect Mogobe BESS and Binga BESS, so the two BESS projects in South Africa and in the Philippines, to reach commercial operation by the end of this year, with four additional projects to follow in H1 2027 across the Philippines, Colombia, and also South Africa. I am very pleased by the construction progress of the projects across our portfolio, and I think our team is doing a tremendous job in keeping control and pushing these projects forward in a disciplined way. Let me also now walk you through our growth portfolio. We now have reached 5.7 GW of generation capacity in operation. This is following the completion of Obelisk and Rio Urucuia, and this is up from 5 GW just one quarter ago. We now have 0.9 GW under construction and a backlog of 5.8 GW.

Speaker #1: On the other side, we did see lower production from existing power plants in the Philippines, Ukraine, and South Africa, which partly offsets the contribution from those new projects.

Speaker #1: Turning to revenues, power production revenues came in slightly above $1 billion, and this represents a 4% reduction relative to the same quarter last year, after adjusting for the one-off effect that we had in the Philippines related to the tariff adjustment last year.

Speaker #1: And I'm very pleased by the construction progress of the projects across our portfolio, and I think our team is doing a tremendous job in keeping control and pushing these projects forward in a disciplined way.

Speaker #1: A new project contributed, then, to $83 million in revenues, and this was offset by a few specific non-recurring effects, especially in Ukraine and South Africa.

Speaker #1: So let me also now walk you through our growth portfolio. So we now have reached 5.7 gigawatts of generation capacity in operation. And this is following the completion of Obelisk and Rio Urucuya, and this is up from 5 gigawatts just one quarter ago.

Speaker #1: So, in summary, the growth portfolio is now starting to contribute in a meaningful way. As more projects reach COD over the coming quarters, the new project contribution will continue to build, and we expect a growing and increasingly resilient generation base going forward.

Terje Pilskog: As more projects reach COD over the coming quarters, the new project contribution will continue to build, and we expect a growing and increasingly resilient generation base going forward. Let me now also make a couple of comments on our position in the Philippines through SNAP, our JV with the Aboitiz Group. In the Philippines, we delivered a good quarter, and here we continue to prove the robustness of a hydropower and battery storage portfolio that we are having here. On volumes, the generation was lower due to hydrology and the early effects of the El Niño, with power produced only at 64 gigawatt hours relative to the 106 gigawatt hours that we had in Q2 last year.

Speaker #1: We now have 0.9 gigawatts under construction and a backlog of 5.8 gigawatts, and together this gives us a near-term portfolio of 12.3 gigawatts, representing a more than 100% growth that we target to realize over the next 2 to 3 years, in terms of generation portfolio.

Terje Pilskog: Together, this gives us a near-term portfolio of 12.3 GW, representing a more than 100% growth that we target to realize over the next two to three years in terms of generation portfolio. On battery storage, the growth is even more striking. We have 1.4 GWh in operation and 0.6 GWh in construction. On top of this, we have a backlog of 4.8 GWh. So this brings the near-term portfolio in terms of battery storage to 6.8 GWh, and this is almost five times what we have in operation today. This reflects the strategic importance and competitiveness of battery storage in the power systems, and it will represent an important value creation tool and area for us going forward.

Speaker #1: Let me now also make a couple of comments on our position in the Philippines through SNAP, our JV with the Aboitiz group. In the Philippines, we delivered a good quarter and here we continue to prove the robustness of the hydropower and battery storage portfolio that we are having here.

Speaker #1: Then on battery storage, the growth is even more striking. We have 1.4 gigawatt-hours in operation, and 0.6 gigawatt-hours in construction. And on top of this, we have a backlog of 4.8 gigawatt-hours.

Speaker #1: On volumes, the generation was lower due to hydrology and the early effects of El Niño, with power produced only at 64 gigawatt-hours, relative to the 106 gigawatt-hours that we had in Q2 last year.

Speaker #1: So this brings the near-term portfolio in terms of battery storage to 6.8 gigawatt-hours, and this is almost 5 times what we have in operation today.

Speaker #1: But despite significantly lower water inflow and generation volumes, we were still able to generate $244 million in revenues in the quarter, relative to the $262 million in revenues that we had last year.

Terje Pilskog: But despite significant lower water inflow and generation volumes, we are still able to generate NOK 244 million in revenues in the quarter relative to the NOK 262 million in revenues that we had last year in the same quarter. We also had an EBITDA of NOK 201 million in the quarter. This speaks to the value of our flexible, diversified generation portfolio and ancillary services position, and the merchant operations capabilities and the trading capabilities that we are having in SNAP.

Speaker #1: And this reflects the strategic importance and competitiveness of battery storage in the power systems, and it will represent an important value creation tool and area for us going forward.

Speaker #1: In the same quarter and we also had an EBITDA of 201 million in the quarter. And this speaks to the value of our flexible diversified generation portfolio that's ancillary services position and the merchant operations capabilities and the trading capabilities that we are having in SNAP.

Speaker #1: And behind this near-term portfolio, we also have a pipeline of 5.9 gigawatts, of generation capacity, and we also have a pipeline of 2.4 gigawatt-hours of additional storage.

Terje Pilskog: Behind this near-term portfolio, we also have a pipeline of 5.9 GW of generation capacity, and we also have a pipeline of 2.4 GWh of additional storage. This provides further growth potential and visibility beyond our backlog. Obviously behind this again, we continue to work actively on new project opportunities across our markets. As I said, we target to realize the projects under construction and in backlog over the next two to three years. They are all meeting our hurdles, and they have attractive returns and margins and can be realized in a capital-efficient manner based on the integrated model that I have already talked about. Now let us take a look at what we are doing in Romania. Romania is emerging as a very promising growth market for renewables.

Speaker #1: And this provides further growth potential, and visibility beyond our backlog. And obviously, behind this again, we continue to work actively on new project opportunities across our markets.

Speaker #1: Ancillary services contributed to 199 million in terms of revenues, while contract and spot energy revenues represented 45 million. Also, spot prices in the quarter were significantly higher than what we had the same quarter last year, with 9.6 pesos per kilowatt-hour relative to 6 pesos per kilowatt-hour last year.

Terje Pilskog: Ancillary services contributed to NOK 199 million, in terms of revenues, while contract and spot energy revenues represented NOK 45 million. Spot prices in the quarter were significantly higher than what we had same quarter last year, with 9.6 pesos per kilowatt hour relative to 6 pesos per kilowatt hour last year. We are also seeing that prices in the ancillary services market continue to be strong during the quarter.

Speaker #1: And as I said, we target to realize the projects on the construction and in backlog over the next 2 to 3 years. They are all meeting our hurdles, and they have attractive returns and margins, and can be realized in a capital-efficient manner based on the integrated model that I have already talked about.

Speaker #1: And we also see that prices in the ancillary services market continued to be strong during the quarter. Obviously, we will come back to the outlook, but the probability of a strong El Niño going into Q4 and also into 2027 is still quite high.

Speaker #1: Now let's take a look at what we are doing in Romania. So Romania is emerging as a very promising growth market for renewables. And I want to take you through some of the rationale behind our investments there.

Terje Pilskog: Obviously, we will come back to the outlook, but the probability of a strong El Niño going into Q4 and also into 2027 is still quite high. On the other side, we also expect that prices will continue to stay elevated across both energy and ancillary services. Also by the end of the year, we are targeting to add more battery storage capacity to the portfolio. Turning to D&C, we will also have or we have had very strong performance in the D&C segment in the quarter. In terms of the construction portfolio, we currently have 792 megawatts of solar, 77 megawatts of wind based on the announcement that we did yesterday evening, and 571 megawatt hours of battery storage under construction across six markets. This is high quality and well-diversified portfolio.

Terje Pilskog: I want to take you through some of the rationale behind our investments there. Firstly, Romania represents a market with attractive renewables growth potential. The market currently has strong tailwinds and significant renewable energy targets, all in the range of 8 GW. The drivers for renewable energy growth in the market is obviously increasing electrification, the fact that they are phasing down and have a target to phase down on coal. They have a dedicated CFD scheme, Contract for Differences scheme, for renewables. This is a scheme which is being backed by the EU and funded by the EU. On top of this, there are also incentives for storage. Secondly, the market offers contracted and predictable long-term revenues.

Speaker #1: On the other side, we also expect that prices will continue to stay elevated across both energy and ancillary services. Also, by the end of the year, we are targeting to add more battery storage capacity to the portfolio.

Speaker #1: Firstly, Romania represents a market with attractive renewables growth potential. The market currently has strong tailwinds, and significant renewable energy targets of in the range of 8 gigawatts.

Speaker #1: The drivers for renewable energy growth in the market is obviously increasing electrification, the fact that there are facing down and have a target to face down on coal, they have a dedicated CFD scheme contract for differences scheme for renewables, and this is a scheme which is being backed by the EU and funded by the EU, and on top of this, there are also incentives for storage.

Speaker #1: So then turning to DNC, we also had or we have had very strong performance in the DNC segment in the quarter. In terms of the construction portfolio, we currently have 792 megawatts of solar, 77 megawatts of wind based on the announcement that we did yesterday evening and 571 megawatt hours of battery storage and the construction across 6 markets.

Speaker #1: Secondly, the market offers contracted and predictable long-term revenues. The CFD scheme enables long-term cash flows in hard currency, and this obviously enables us to use our traditional model and secure non-recourse project finance backing these projects.

Terje Pilskog: The CFD scheme enable long-term cash flows in hard currency, and this obviously enables us to use our traditional model and secure non-recourse project finance backing these projects. We are also able to implement our traditional integrated model so that we can also, over time, capture value through D&C and other services. Finally, Romania also offers opportunities for additional value creation beyond the contracted cash flows. In Romania, there is a merchant energy market with attractive prices and, in addition, price volatility across both the energy sales and also across ancillary services. We can capture value from this based on a flexible and diversified portfolio of solar, wind, and battery storage. Battery here is an essential element to the total portfolio.

Speaker #1: This is a high-quality and well-diversified portfolio. On financial performance, we delivered a D&C gross margin of 24%, including the contingency release in Obelisk, with the underlying margin still at a solid 11%.

Terje Pilskog: On financial performance, we delivered a D&C growth margin of 24%, including the contingency release in Obelisk and with the underlying margin still at a solid 11%. On product milestones, Obelisk Phase 2, Rio Urucuia, and also Magat BESS 2 all reached commercial operation during the quarter. Sidi Bouzid 2 in Tunisia and Urleasca in Romania have started construction, adding 120 MW of solar and 77 MW of wind to our construction portfolio. The remaining contract portfolio has a value of NOK 3.8 billion. So we still have significant secured revenue outlook in the D&C segment, and we continue to expect 10% to 12%, at least, gross margins across the portfolio.

Speaker #1: We are also able to implement our traditional integrated model so that we can also over time capture value through DNC service DNC and other services.

Speaker #1: On project milestones, Obelisk Phase 2, Rio Uruguaya, and also Magat BESS 2 all reached commercial operation during the quarter, while CDBC 2 in Tunisia and Uriașca in Romania have started construction, adding 120 megawatts of solar and 77 megawatts of wind to our construction portfolio.

Speaker #1: And then finally, Romania also offers opportunities for additional value creation beyond the contracted cash flows. In Romania, there is a merchant energy market with attractive prices, and in addition, price volatility across both the energy sales and also across ancillary services.

Speaker #1: And now the remaining contract portfolio has a value of $3.8 billion, so we still have significant secured revenue outlook in the DNC segment, and we continue to expect at least 10 to 12% gross margins across the portfolio.

Speaker #1: And we can capture value from this based on a flexible and diversified portfolio of solar, wind, and battery storage. And battery here is an essential element to the total portfolio.

Speaker #1: And obviously, our experience also with operating in merchant markets that we have, for instance, from the Philippines, is also something that we can transfer into upcoming growth markets like this one in Romania.

Terje Pilskog: Our experience also with operating in merchant markets that we have, for instance, from the Philippines, is also something that we can transfer into upcoming growth markets like this one in Romania. So now we have three projects in Romania. We have Dobrun and Sadova, 190 MW of solar, and Urleasca wind of 77 MW of wind that we already have in construction. Today we are also announcing that we have included Buciumi, a BESS project of 178 GWh, into our backlog, which we will also target to move into construction relatively soon. So this comprises a portfolio of projects with attractive contracted long-term revenues. At the same time as we have the flexibility in the portfolio to protect ourselves from downside and to capture upsides in the energy market based on volatility of prices.

Speaker #1: And looking ahead now, we expect Mogobe Bess and Binga Bess—so the two best projects in South Africa and in the Philippines—to reach commercial operation by the end of this year, with four additional projects to follow in the first half of 2027 across the Philippines, Colombia, and also South Africa.

Terje Pilskog: Looking ahead now, we expect Mogobe BESS and Binga BESS, so the two BESS projects in South Africa and in the Philippines, to reach commercial operation by the end of this year, with four additional projects to follow in the H1 2027 across the Philippines, Colombia, and also South Africa. I am very pleased by the construction progress of the projects across our portfolio, and I think our team is doing a tremendous job in keeping control and pushing these projects forward in a disciplined way. Let me also now walk you through our growth portfolio. We now have reached 5.7 GW of generation capacity in operation. This is following the completion of Obelisk and Rio Urucuia, and this is up from 5 GW just one quarter ago. We now have 0.9 GW under construction and a backlog of 5.8 GW.

Speaker #1: So now we have 3 projects in Romania. We have Dobrin and Sodova, 190 megawatts of solar, and Uriasca wind of 77 megawatts of wind.

Speaker #1: That we already have in construction. And today we are also announcing that we have included Buciumi, a BES project of 178 gigawatt-hours into our backlog, which we will also target to move into construction relatively soon.

Speaker #1: And I'm very pleased with the construction progress of the projects across our portfolio, and I think our team is doing a tremendous job in keeping control and pushing these projects forward in a disciplined way.

Speaker #1: So this comprises a portfolio of projects with attractive contracted long-term revenues, at the same time as we have the flexibility in the portfolio to protect ourselves from downside, and to capture upsides in the energy market based on volatility of prices.

Speaker #1: So let me also now walk you through our growth portfolio. We have now reached 5.7 gigawatts of generation capacity in operation, following the completion of Obelisk and Rio Uruguaya.

Speaker #1: And this is up from 5 gigawatts just one quarter ago. We now have 0.9 gigawatts under construction and a backlog of 5.8 gigawatts, and together this gives us a near-term portfolio of 12.3 gigawatts, representing more than 100% growth that we target to realize over the next 2 to 3 years in terms of generation portfolio.

Speaker #1: So this forms a strong initial platform for further growth in a market where we see significant opportunities for further value creation going forward. So with that, I will hand over to Hans Jacob to take us over through the financials.

Terje Pilskog: So this forms a strong initial platform for further growth in a market where we see significant opportunities for further value creation going forward. With that, I will hand over to Hans Jakob to take us over through the financials.

Terje Pilskog: Together this gives us a near-term portfolio of 12.3 GW, representing a more than 100% growth that we target to realize over the next two to three years in terms of generation portfolio. On battery storage, the growth is even more striking. We have 1.4 GWh in operation and 0.6 GWh in construction. On top of this, we have a backlog of 4.8 GWh. So this brings the near-term portfolio in terms of battery storage to 6.8 GWh, and this is almost five times what we have in operation today. This reflects the strategic importance and competitiveness of battery storage in the power systems, and it will represent an important value creation tool and area for us going forward.

Speaker #1: Then, on battery storage, the growth is even more striking. We have 1.4 gigawatt-hours in operation and 0.6 gigawatt-hours under construction. On top of this, we have a backlog of 4.8 gigawatt-hours.

Speaker #2: Thank you, Terje. We delivered strong results across the group, with high DNC activity in a good quarter also in the Philippines. I'll walk you through the group financials and the performance of our operating segments, and I'll also cover the improvements in our capital structure.

Hans Jakob Hegge: Thank you, Terje. We delivered strong results across the group, with high D&C activity in a good quarter also in the Philippines. I will walk you through the group financials and the performance of our operating segments, and I will also cover the improvements in our capital structure. Looking at the quarter on group level, we continue to generate solid revenues from our D&C activity, with positive effect on proportionate financials. Consolidated revenue was NOK 1.37 billion, compared to NOK 1.3 billion in the same quarter last year. This includes NOK 255 million in construction revenues related to our Lyra JV in South Africa, which has a lower EBIT margin than our power-producing assets. EBITDA reached NOK 824 million, compared to NOK 1 billion. The change is mainly driven by a one-off effect in the Philippines in the same quarter last year.

Speaker #1: So this brings the near-term portfolio in terms of battery storage to 6.8 gigawatt-hours, and this is almost five times what we have in operation today.

Speaker #2: Looking at the quarter-on-group level, we continue to generate solid revenues from our DNC activity, with positive effect on proportionate financials. Consolidated revenue was 1.37 billion compared to 1.3 billion in the same quarter last year.

Speaker #1: This reflects the strategic importance and competitiveness of battery storage in power systems, and it will represent an important value creation tool and area for us going forward.

Speaker #1: And behind this near-term portfolio, we also have a pipeline of 5.9 gigawatts of generation capacity, and we also have a pipeline of 2.4 gigawatt-hours of additional storage.

Speaker #2: This includes 255 million in construction revenues, related to our Lyra JV in South Africa, which has a lower EBITDA margin than our power-producing assets.

Speaker #1: And this provides further growth potential and visibility beyond our backlog. And, obviously behind this, again we continue to work actively on new project opportunities across our markets.

Speaker #2: EBITDA reached 824 million compared to 1 billion, the change is mainly driven by a one-off effect in the Philippines in the same quarter last year.

Speaker #1: And as I said, we target to realize the projects under construction and in backlog over the next two to three years. They are all meeting our hurdles, and they have attractive returns and margins and can be realized in a capital-efficient manner based on the integrated model that I have already talked about.

Speaker #2: Our proportionate revenues was 2.3 billion, in line with the same quarter last year, and the proportionate EBITDA was 1 billion compared to 1.1 billion year-on-year.

Hans Jakob Hegge: Our proportionate revenues was NOK 2.3 billion, in line with the same quarter last year, and the proportionate EBITDA was NOK 1 billion, compared to NOK 1.1 billion year-on-year. Now let me take you through the segment, starting with power production. We delivered revenues of NOK 1 billion, compared to NOK 1.3 billion in the same quarter last year. This was mainly explained by the one-off in the Philippines of NOK 231 million last year, related to the new ancillary services tariffs. The EBITDA was NOK 805 million. For the last 12 months, we have delivered NOK 4.2 billion in revenues and NOK 3.2 billion in EBITDA. The difference is mainly explained by the reduced revenues from divested assets and the one-off in the Philippines. Overall, we are very pleased with the value generated from our operating assets.

Speaker #2: Now take me through the let me take you through the segments starting with power production, we delivered revenues of 1 billion compared to 1.3 billion in the same quarter last year.

Speaker #1: Now let's take a look at what we are doing in Romania. Romania is emerging as a very promising growth market for renewables, and I want to take you through some of the rationale behind our investments there.

Speaker #2: This was mainly explained by the one-off in the Philippines of 231 million, last year related to the new ancillary services tariffs. The EBITDA was 805 million.

Speaker #1: Firstly, Romania represents a market with attractive renewables growth potential. The market currently has strong tailwinds and significant renewable energy targets of around 8 gigawatts.

Terje Pilskog: Firstly, Romania represents a market with attractive renewables growth potential. The market currently has strong tailwinds and significant renewable energy targets, all in the range of 8 gigawatts. The drivers for renewable energy growth in the market is obviously increasing electrification. The fact that they are phasing down and have a target to phase down on coal. They have a dedicated CfD scheme, Contract for Differences scheme, for renewables. This is a scheme which is being backed by the EU and funded by the EU. On top of this, there are also incentives for storage. Secondly, the market offers contracted and predictable long-term revenues. The CfD scheme enable long-term cash flows in hard currency, and this obviously enables us to use our traditional model and secure non-recourse project finance backing these projects.

Speaker #2: And for the last 12 months, we have delivered 4.2 billion in revenues and 3.2 billion in EBITDA. The difference is mainly explained by the reduced revenues from divested assets and the one-off in the Philippines.

Speaker #1: The drivers for renewable energy growth in the market are obviously increasing electrification, the fact that they are phasing down—and have a target to phase down—on coal. They have a dedicated CFD scheme, Contract for Differences, for renewables, and this is a scheme which is being backed by the EU and funded by the EU. On top of this, there are also incentives for storage.

Speaker #2: Overall, we are very pleased with the value generated from our operating assets. Moving to development and construction, we have high activity and the proportionate revenue was 1.2 billion compared to 976 million last year.

Hans Jakob Hegge: Moving to Development and Construction, we have high activity, and the proportionate revenue was NOK 1.2 billion, compared to NOK 976 million last year. EBITDA was NOK 234 million, compared to NOK 49 million. This was driven by NOK 160 million contingency release from Obelisk Phase 2. The contingency release is a result of timely and cost-efficient execution of the project. The trend from the last 12 months confirmed the long-term strength and scalability of our D&C business. D&C revenues the last 12 months was NOK 6 billion, with a steady increase over the last five quarters. Rolling EBITDA ended at NOK 720 million, with a contribution from high-margin projects, contingencies, and what I call disciplined cost control. Looking at free cash on group level, free cash position ended at NOK 1.6 billion in the quarter due to the following movements.

Speaker #2: EBITDA was 234 million compared to 49 million, this was driven by 160 million contingency release from Obelisk Phase 2. The contingency release is a result of timely and cost-efficient execution of the project.

Speaker #1: We are also able to implement our traditional integrated model, so that we can, over time, capture value through DNC service, DNC, and other services.

Terje Pilskog: We are also able to implement our traditional integrated model so that we can also, over time, capture value through D&C and other services. Finally, Romania also offers opportunities for additional value creation beyond the contracted cash flows. In Romania, there is a merchant energy market with attractive prices and, in addition, price volatility across both the energy sales and also across ancillary services. We can capture value from this based on a flexible and diversified portfolio of solar, wind, and battery storage. Battery here is an essential element to the total portfolio. Obviously our experience also with operating in merchant markets that we have, for instance from the Philippines, is also something that we can transfer into upcoming growth markets like this one in Romania. So now we have three projects in Romania.

Speaker #2: The trend from the last 12 months confirmed the long-term strength and scalability of our DNC business. DNC revenues the last 12 months was 6 billion, with a steady increase over the last 5 quarters.

Speaker #2: Rolling EBITDA ended at 720 million, with a contribution from high margin projects contingencies and what I call disciplined cost control. Looking at free cash on group level, free cash position ended at 1.6 billion in the quarter due to the following movements.

Speaker #1: And we can capture value from this based on the flexible and diversified portfolio of solar, wind, and battery storage. And battery here is an essential element of the total portfolio.

Speaker #2: We received 334 million in distributions from power plants, generated 211 million EBITDA from DNC and corporate, had 873 million of reversal of working capital, mainly related to Obelisk, and paid 215 million of interest.

Hans Jakob Hegge: We received NOK 334 million in distributions from power plants, generated NOK 211 million EBITDA from D&C and corporate, had NOK 873 million of reversal of working capital, mainly related to Obelisk, and paid NOK 215 million of interest. At the end of the quarter, we have invested approximately NOK 800 million of equity in our growth projects. We have also increased our RCF from $230 million to $350 million at improved terms. The increased limit provides a solid liquidity buffer and will support the execution of our record high near-term growth portfolio across geographies. Following the new RCF, we have a total available liquidity of NOK 5.1 billion, which provides a solid buffer to deliver on these strategic targets. I would like to add a thanks to the banks for the cooperation.

Speaker #1: So now we have three projects in Romania. We have Dobrin and Sadova, 190 megawatts of solar, and Uriasca wind, 77 megawatts of wind, that we already have in construction.

Terje Pilskog: We have Dobrun and Sadova, 190 megawatts of solar, and Urleasca wind of 77 megawatts of wind that we already have in construction. Today, we are also announcing that we have included Mikumi, a BESS project of 178 gigawatt hours, into our backlog, which we will also target to move into construction relatively soon. So this comprises a portfolio of projects with attractive contracted long-term revenues. At the same time as we have the flexibility in the portfolio to protect ourselves from downside and to capture upsides in the energy market based on volatility of prices. So this forms a strong initial platform for further growth in a market where we see significant opportunities for further value creation going forward. With that, I will hand over to Hans Jakob to take us through the financials.

Speaker #1: And today we are also announcing that we have included Buchumi, a best project of 178 gigawatt-hours, into our backlog, which we will also target to move into construction relatively soon.

Speaker #2: At the end of the quarter, we have invested approximately 800 million of equity in our growth projects. We have also increased our RCF from 230 million to 350 million, dollars, at improved terms.

Speaker #1: So, this comprises a portfolio of projects with attractive, contracted long-term revenues, at the same time as we have the flexibility in the portfolio to protect ourselves from downside and to capture upsides in the energy market based on volatility of prices.

Speaker #2: The increase is limited the increase limit provides a solid liquidity buffer and will support execution of our record high near-term growth portfolio across geographies.

Speaker #1: So, this forms a strong initial platform for further growth in a market where we see significant opportunities for further value creation going forward. So, with that, I will hand over to Hans Jacob to take us through the financials.

Speaker #2: Following the new RCF, we have a total available liquidity of 5.1 billion, which provides a solid buffer and to deliver on these strategic targets I would like to add a thanks to the banks for the cooperation.

Speaker #2: Thank you, Terje. We delivered strong results across the group, with high DNC activity and a good quarter also in the Philippines. I'll walk you through the group financials and the performance of our operating segments.

Hans Jakob Hegge: Thank you, Terje. We delivered strong results across the group with high D&C activity in a good quarter, also in the Philippines. I will walk you through the group financials and the performance of our operating segments, and I will also cover the improvements in our capital structure. Looking at the quarter on group level, we continue to generate solid revenues from our D&C activity with positive effect on proportionate financials. Consolidated revenue was NOK 1.37 billion, compared to NOK 1.3 billion in the same quarter last year. This includes NOK 255 million in construction revenues related to our Lyra JV in South Africa, which has a lower EBT margin than our power-producing assets. EBITA reached NOK 824 million compared to NOK 1 billion. The change is mainly driven by a one-off effect in the Philippines in the same quarter last year.

Speaker #2: Looking at proportionate net debt, which has first starting with the gross corporate debt, that was reduced to 6.4 billion, while the net interest bearing debt increased due to the reduction of cash, mainly driven by changes in working capital and investments.

Hans Jakob Hegge: Looking at proportionate net debt, first starting with the gross corporate debt, that was reduced to NOK 6.4 billion, while the net interest-bearing debt increased due to the reduction of cash, mainly driven by changes in working capital and investments. Over time, we have significantly reduced the debt on corporate level to increase financial flexibility and reduce interest costs. On project level, gross debt increased by NOK 100 million to NOK 19.6 billion due to new growth projects. Net debt for projects under operation was reduced by NOK 200 million, and net debt for projects under construction increased by NOK 200 million, and the cash held at SPV increased by NOK 200 million to NOK 3 billion. Let me now take you through the bond refinancing activity, which is an important part of our strategy to strengthen the balance sheet and reduce financing costs over time.

Speaker #2: And I'll also cover the improvements in our capital structure. Looking at the quarter on a group level, we continue to generate solid revenues from our DNC activity.

Speaker #2: Over time, we have significantly reduced the debt on corporate level, to increase financial flexibility and reduce interest costs. On project level, gross debt increased by 100 million to 19.6 billion due to new growth projects, net debt for projects under operation was reduced by 200 million, and net debt for project under construction increased by 200 million, and the cash held out SPV increased by 200 million, to 3 billion.

Speaker #2: With positive effect on proportionate financials. Consolidated revenue was NOK 1.37 billion compared to NOK 1.3 billion in the same quarter last year. This includes NOK 255 million in construction revenues related to our Lyra JV in South Africa, which has a lower EBITDA margin than our power producing assets.

Speaker #2: EBITDA reached $824 million, compared to $1 billion. The change is mainly driven by a one-off effect in the Philippines in the same quarter last year.

Speaker #2: Let me now take you through the bond refinancing activity, which is an important part of our strategy to strengthen the balance sheet and reduce financing costs over time.

Speaker #2: Our proportionate revenues were $2.3 billion, in line with the same quarter last year, and the proportionate EBITDA was $1.0 billion compared to $1.1 billion year on year.

Hans Jakob Hegge: Our proportionate revenues was NOK 2.3 billion, in line with the same quarter last year, and the proportionate EBITDA was NOK 1 billion compared to NOK 1.1 billion year-on-year. Let me take you through the segment. Starting with power production, we delivered revenues of NOK 1 billion compared to NOK 1.3 billion in the same quarter last year. This was mainly explained by the one-off in the Philippines of NOK 231 million last year, related to the new ancillary services tariffs. The EBITDA was NOK 805 million, and for the last 12 months, we have delivered NOK 4.2 billion in revenues and NOK 3.2 billion in EBITDA. The difference is mainly explained by the reduced revenues from divested assets and the one-off in the Philippines. Overall, we are very pleased with the value generated from our operating assets. Moving to Development and Construction.

Speaker #2: As you can see from the chart, we are currently have 4 outstanding corporate bonds. SCATECO 4, matures in 2027, and carries out the most expensive margin at 660 basis points over 3 months NIBOR.

Hans Jakob Hegge: As you can see from the chart, we currently have four outstanding corporate bonds. SCATC04 matures in 2027 and carries out the most expensive margin at 660 basis points over three months NIBOR. We are planning to refinance this bond with a new expected NOK 1 billion bond issue, which will extend our maturity profile to 2031 and at improved margins. This is a rather straightforward and value-creating transaction as we are replacing our most costly debt with longer-dated financing and at better terms. The broader picture is encouraging. Looking across our bond stack, you can see a clear downward trend in financing costs as we have grown and strengthened our credit profile. SCATC05 carries 425 basis points margin, SCATC06 315 basis points, and SCATC07 285 basis points. You get my point. This trend is progress that we have made by reducing also the risk and improved financial discipline.

Speaker #2: Now let me take you through the segments, starting with Power Production. We delivered revenues of $1 billion, compared to $1.3 billion in the same quarter last year.

Speaker #2: We are planning to refinance this bond with a new expected 1 billion knock bond issue, which will extend our maturity profile to 2031 and at improved margins.

Speaker #2: This was mainly explained by the one-off in the Philippines of $231 million last year related to the new ancillary services tariffs. The EBITDA was $805 million.

Speaker #2: This is a rather straightforward and value-creating transaction, as we are replacing our most costly debt with longer dated financing, and at better terms. The broader picture is encouraging.

Speaker #2: And for the last 12 months, we have delivered $4.2 billion in revenues and $3.2 billion in EBITDA. The difference is mainly explained by the reduced revenues from divested assets and the one-off in the Philippines.

Speaker #2: Looking across our bond stack, you can see a clear downward trend in financing costs as we have grown and strengthened our credit profile. SCATECO 5 carries 425 basis points, margin, SCATECO 6, 315 basis points, and SCATECO 7, 285 basis points, you get my point.

Speaker #2: Overall, we are very pleased with the value generated from our operating assets. Moving to development and construction, we have high activity, and the proportionate revenue was NOK 1.2 billion compared to NOK 976 million last year.

Hans Jakob Hegge: We have high activity, and the proportionate revenue was NOK 1.2 billion compared to NOK 976 million last year. EBITDA was NOK 234 million compared to NOK 49 million. This was driven by NOK 160 million contingency release from Obelisk Phase 2. The contingency release is a result of timely and cost-efficient execution of the project. The trend from the last 12 months confirmed the long-term strength and scalability of our D&C business. D&C revenues the last 12 months was NOK 6 billion, with a steady increase over the last five quarters. Rolling EBITDA ended at NOK 720 million, with a contribution from high-margin projects, contingencies and what I call disciplined cost control. Looking at free cash on group level, free cash position ended at NOK 1.6 billion in the quarter due to the following movements.

Speaker #2: EBITDA was $234 million compared to $49 million. This was driven by a $160 million contingency release from Obelisk Phase Two. The contingency release is a result of timely and cost-efficient execution of the project.

Speaker #2: This trend is progress. That we have made by reducing also the risk and improved financial discipline. The overarching strategy is clear. SCATEC is committed to reduce corporate debt and interest expenses over time, and the refinancing is a concrete step in this direction.

Hans Jakob Hegge: The overarching strategy is clear. Scatec is committed to reduce corporate debt and interest expenses over time, and the refinancing is a concrete step in this direction. Now, let me take you through the outlook. We are maintaining our full-year EBITDA guidance. In our Power Production segment, we estimate a full-year power production between 505 and 535 gigawatt hours, which is 50 gigawatt hours lower than the previous estimate due to lower expected hydrology in the Philippines. Our estimated full-year EBITDA is kept at a midpoint of NOK 375 million, as the lower production is expected to be offset by higher reserve market prices. We have not made any adjustments to FX this quarter, as the quarterly effects are limited. For the Q3, we expect a total power production between 1,500 and 1,600 gigawatt hours and EBITDA in the Philippines between NOK 320 and 420 million.

Speaker #2: The trend from the last 12 months confirmed the long-term strength and scalability of our DNC business. DNC revenues in the last 12 months were $6 billion, with a steady increase over the last five quarters.

Speaker #2: Now let me take you through the outlook. We are maintaining our full-year EBITDA guidance. In our power production segment, we estimate a full-year power production between 505 and 535 terawatt hours which is 50 gigawatt hours lower than the previous estimate due to lower expected hydrology in the Philippines.

Speaker #2: Rolling EBITDA ended at 720 million, with a contribution from high-margin projects, contingencies, and what I call disciplined cost control. Looking at free cash on group level, free cash position ended at 1.6 billion in the quarter due to the following movements.

Speaker #2: Our estimated full-year EBITDA is kept at a midpoint of 375 billion, as the lower production is expected to be offset by higher reserve market prices.

Speaker #2: We received $334 million in distributions from power plants, generated $211 million EBITDA from D&C, and corporate had $873 million of reversal of working capital, mainly related to Obelisk, and paid $215 million of interest.

Speaker #2: We have not made any adjustments to FX this quarter, as the quarterly FX effects are limited. For the third quarter, we expect a total power production between 1500 and 1600 gigawatt hours, and EBITDA in the Philippines between 320 and 420 million knock.

Speaker #2: At the end of the quarter, we have invested approximately $800 million of equity in our growth projects. We have also increased our RCF from $230 million to $350 million at improved terms.

Speaker #2: In our DNC segment, the remaining contract value as Terje said is 3.8 billion, primarily related to Takadu in South Africa, Barcelosa in Colombia, and CDBC 2 in Tunisia.

Hans Jakob Hegge: In our D&C segment, the remaining contract value, as Terje said, is NOK 3.8 billion, primarily related to Thakadu in South Africa, Barzalosa in Colombia, and Sidi Bouzid II in Tunisia. The estimated gross margin is unchanged at 10% to 12% on average across the portfolio of projects under construction. For corporate, the expected full-year EBITDA is unchanged at NOK -125 to -135 million, and these estimates reflect a strong base of operating assets, high construction activity, and a healthy cost control. Then I leave it to you, Terje, to take us through the summary.

Speaker #2: The estimated gross margin is unchanged at 10 to 12% on average, across the portfolio of projects under construction. For corporate, the expected full-year EBITDA is unchanged at knock 125, 135 negative, and these estimates reflect a strong base of operating assets, high construction activity, and a healthy cost control, and then I leave it to you, Terje, to take us through the summary.

Speaker #2: The increase is limited. The increase limit provides a solid liquidity buffer and will support execution of our record-high near-term growth portfolio across geographies.

Speaker #2: Following the new RCF, we have a total available liquidity of $5.1 billion, which provides a solid buffer. To deliver on these strategic targets, I would like to add a thanks to the banks for their cooperation.

Speaker #2: Looking at proportionate net debt, starting first with the gross corporate debt, which was reduced to $6.4 billion, while the net interest-bearing debt increased due to the reduction of cash, mainly driven by changes in working capital and investments.

Speaker #1: Thank you, Hans Jacob. And in summary, we are continuing to have an all-time high growth portfolio that we will continue to drive towards financial close, and into construction.

Terje Pilskog: Thank you, Hans Jakob. In summary, we are continuing to have an all-time high growth portfolio that we will continue to drive towards financial close and into construction. This is going to, as we have said, put us in a position to double our capacity over the next 2 to 3 years in terms of generation and increase our capacity in terms of battery storage by 5 times over the next 2 to 3 years. We have now, I believe, proven our execution capabilities in Egypt and across all the countries where we are operating. We are, from an execution point of view, also ready to target this portfolio and move into construction across these different projects. Finally, we have also the financial flexibility. We are continuing to strengthen our financial position and increase our financial flexibility in terms of moving forward and managing this portfolio.

Speaker #2: Over time we have significantly reduced the debt on corporate level to increase financial flexibility and reduce interest costs. On project level gross debt increased by 100 million to 19.6 billion due to new growth projects net debt for projects under operation was reduced by 200 million and net debt for projects under construction increased by 200 million and the cash held out SPV increased by 200 million to 3 billion.

Speaker #1: And this is going to, as we have said, make us put us in a position to double our capacity over the next 2 to 3 years, in terms of generation, and increase our capacity in terms of battery storage by 5 times over the next 2 to 3 years.

Speaker #1: And we have now, I believe, proven our execution capabilities in Egypt and across all the countries where we are operating, and we are, from an execution point of view, also ready to target this portfolio and move into construction across these different projects.

Speaker #1: And finally, we have also the financial flexibility we are continuing to strengthen our financial position and increase our financial flexibility in terms of moving forward and managing this portfolio.

Speaker #2: Let me now take you through the bond refinancing activity, which is an important part of our strategy to strengthen the balance sheet and reduce financing costs over time.

Speaker #2: As you can see from the chart, we currently have four outstanding corporate bonds. SCATEC O4 matures in 2027 and carries the most expensive margin at 660 basis points over 3-month NIBOR.

Speaker #1: So I believe that we are in very good position to drive now this growth going forward. Thank you. And then I think we will open for Q&A.

Terje Pilskog: I believe that we are in very good position to drive now this growth going forward. Thank you. Then I think we will open for Q&A.

Speaker #2: Thank you, Terje, Hans Jacob. Yes, we will then open up for Q&A. We will start with questions in the room here, and then we have a number of questions also from our online listeners.

[Company Representative] (Scatec): Thank you, Terje and Hans Jakob. Yes, we will then open up for Q&A. We will start with questions in the room here, and then we have a number of questions also from our online listeners. If you would like to ask a question, just raise your hand. Yes, Andreas.

Speaker #2: We are planning to refinance this bond with a new, expected NOK 1 billion bond issue, which will extend our maturity profile to 2031 and at improved margins.

Speaker #2: So if you would like to ask a question, just raise your hand. Yes.

Speaker #2: This is a rather straightforward and value-creating transaction, as we are replacing our most costly debt with longer-dated financing and at better terms.

Speaker #3: Andreas Nygård, Nordea. One question on the FIDs you're expecting to reach in the sec now of 2026. You're now having a 3.8 billion contract backlog for DNC.

Andreas Nærbø: Andreas Nærbø, Nordea. One question on the FIDs you are expecting to reach in H2 2026. You are now having a 3.8 billion contract backlog for D&C. If you reach FID, what are you expecting to add to this contract backlog in H2 of this year?

Andreas Nygård: Andreas Nygård, Nordea. One question on the FIDs you are expecting to reach in H2 2026. You are now having a 3.8 billion contract backlog for D&C. If you reach FID, what are you expecting to add to this contract backlog in H2 of this year?

Speaker #2: The broader picture is encouraging. Looking across our bond stack, you can see a clear downward trend in financing costs as we have grown and strengthened our credit profile.

Speaker #3: If you reach FID, what are you expecting to add to this contract backlog in the second half of this year?

Speaker #2: SCATEC O5 carries a 425 basis points margin, SCATEC O6, 315 basis points, and SCATEC O7, 285 basis points. You get my point. This trend is progress that we have made by also reducing the risk and improving financial discipline.

Speaker #1: Yeah, we haven't provided

Speaker #2: any guiding beyond the contract value so we will have to come back to more specifics. That's a short, short and short answer to that.

Terje Pilskog: Yeah, we haven't provided any guiding beyond the contract value. So we will have to come back to more specifics. That's the short answer to that.

Speaker #3: Okay, and then a second question for me. Data centers, is that something that is currently in your pipeline?

Andreas Nærbø: Okay, and then a second question. For me, data centers, is that something that is currently in your pipeline?

Andreas Nygård: Okay, and then a second question. For me, data centers, is that something that is currently in your pipeline?

Speaker #2: The overarching strategy is clear. Scatec is committed to reducing corporate debt and interest expenses over time, and the refinancing is a concrete step in this direction.

Hans Jakob Hegge: The overarching strategy is clear. Scatec is committed to reduce corporate debt and interest expenses over time, and the refinancing is a concrete step in this direction. Now let me take you through the outlook. We are maintaining our full-year EBITDA guidance. In our Power Production segment, we estimate a full-year power production between 505 and 535 terawatt-hours, which is 50 gigawatt-hours lower than the previous estimate due to lower expected hydrology in the Philippines. Our estimated full-year EBITDA is kept at a midpoint of 375 million, as the lower production is expected to be offset by higher WESM market prices. We have not made any adjustments to FX this quarter as the quarterly effects are limited. For the third quarter, we expect a total power production between 1,500 and 1,600 gigawatt-hours and EBITDA in the Philippines between NOK 320 and 420 million.

Speaker #1: Data centers is not in the pipeline specifically, and obviously it always depends on what is included when you ask data center is it in our pipelines.

Terje Pilskog: Data centers is not in the pipeline specifically, and obviously it always depends on what is included when you ask data centers is in our pipelines. Clearly, data centers is also being planned and developed in the countries where we are operating and will contribute to the demand for renewable energy also in the markets where we are. So we do absolutely see benefits also from us, from the current growth in data centers on a global basis.

Speaker #1: Clearly, data centers is always also being planned and developed in the countries where we are operating, and will contribute to the demand for renewable energy also in the markets where we are.

Speaker #2: Now let me take you through the outlook. We are maintaining our full-year EBITDA guidance. In our Power Production segment, we estimate full-year power production between 505 and 535 terawatt hours, which is 50 gigawatt hours lower than the previous estimate due to lower expected hydrology in the Philippines.

Speaker #1: So we do absolutely see benefits also from us, from the current growth in data centers. On a global basis.

Speaker #3: And given that you're underground, for instance, in Egypt and South Africa, how have the discussions surrounding data centers evolved over the last 6 to 12 months, and what is the potential scale for potential clients of yours with that regard?

Andreas Nærbø: And given that you're underground, for instance, in Egypt and South Africa, how have the discussions surrounding data centers evolved over the last 6 to 12 months, and what is the potential scale for potential clients of yours with that regard?

Andreas Nygård: And given that you're underground, for instance, in Egypt and South Africa, how have the discussions surrounding data centers evolved over the last 6 to 12 months, and what is the potential scale for potential clients of yours with that regard?

Speaker #2: Our estimated full year EBITDA is kept at a midpoint of NOK 375 billion, as the lower production is expected to be offset by higher reserve market prices.

Speaker #2: We have not made any adjustments to FX this quarter, as the quarterly FX effects are limited. For the third quarter, we expect a total power production between 1,500 and 1,600 gigawatt hours, and EBITDA in the Philippines between 320 and 420 million NOK.

Speaker #1: I think we are not going to sort of provide any speculation on that now. We obviously, as I said, we do see that data center activity is moving also in our region and in our countries.

Terje Pilskog: I think we are not going to provide any speculation on that now. We obviously, as I said, we do see that data center activity is moving also in our region and in our countries, and then we will rather come back to that more specifically when there are something concrete on that.

Speaker #1: And then we will rather come back to that more specifically, when there are something concrete on that.

Speaker #3: Okay, thank you.

Andreas Nærbø: Okay. Thank you.

Andreas Nygård: Okay. Thank you.

Speaker #2: In our DNC segment, the remaining contract value, as Tarjei said, is $3.8 billion, primarily related to Takadu in South Africa, Barsalo also in Colombia, and Side Busid 2 in Tunisia.

Hans Jakob Hegge: In our D&C segment, the remaining contract value, as Terje said, is 3.8 billion, primarily related to Thakadu in South Africa, Barzalosa in Colombia, and Sidi Bouzid II in Tunisia. The estimated gross margin is unchanged at 10% to 12% on average across the portfolio of projects under construction. For corporate, the expected full-year EBITDA is unchanged at NOK -125 to -135, and these estimates reflect a strong base of operating assets, high construction activity, and a healthy cost control. Then I leave it to you, Terje, to take us through the summary.

Speaker #2: Anyone else would like to ask a question? In the room? No, then we go over to our questions from the from our online listeners.

[Company Representative] (Scatec): Anyone else would like to ask a question in the room? No. Then we go over to the questions from our online listeners. One question about Egypt Green Hydrogen. What is the latest on Egypt Green Hydrogen? When is an FID expected and are you on schedule for the deliveries planned under the H2Global mechanism?

Speaker #2: The estimated gross margin is unchanged at 10 to 12% on average across the portfolio of projects under construction. For corporate, the expected full-year EBITDA is unchanged at NOK 125 to 135 million negative, and these estimates reflect a strong base of operating assets, high construction activity, and healthy cost control. And then, I leave it to you, Tarjei, to take us through the summary.

Speaker #2: We have one question about Egypt green hydrogen. What is the latest on Egypt green hydrogen? When is an FID expected, and are you on schedule for delivery for the deliveries planned under the H2 Global mechanism?

Speaker #1: Yes, on the EGH projects, together with our partner Further Globe, we have everything prepared for that project, and we are now awaiting certain clarifications in terms of regulations from the EU and subject to getting those.

Terje Pilskog: Yes, on the EGH project, together with our partner, Fertiglobe, we have everything prepared for that project. We are now awaiting certain clarifications in terms of regulations from the EU, and subject to getting those, we will be able to move forward. We will also be able to meet the contract obligations that Fertiglobe has towards H2Global.

Speaker #1: Thank you, Hans Jacob. In summary, we continue to have a gross portfolio at an all-time high, which we will continue to drive towards financial close and into construction.

Speaker #1: We will be able to move forward, and we will also be able to meet the contract obligations that Further Globe has towards H2 Global.

Terje Pilskog: Thank you, Hans Jakob. In summary, we are continuing to have an all-time high growth portfolio that we will continue to drive towards financial close and into construction. This is going to, as we have said, put us in a position to double our capacity over the next two to three years in terms of generation and increase our capacity in terms of battery storage by five times over the next two to three years. We have now, I believe, proven our execution capabilities in Egypt and across all the countries where we are operating. We are, from an execution point of view, also ready to target this portfolio and move into construction across these different projects. Finally, we have also the financial flexibility. We are continuing to strengthen our financial position and increase our financial flexibility in terms of moving forward and managing this portfolio.

Speaker #2: Another question about El Niño in the Philippines. Can you talk about the expected impact of El Niño and potentially super El Niño on the Philippines business and other geographies such as Brazil?

[Company Representative] (Scatec): Got a question about El Niño in the Philippines. Can you talk about the expected impact of El Niño and potentially super El Niño on the Philippines business and other geographies such as Brazil? Thank you.

Speaker #1: And this is going to, as we have said, put us in a position to double our capacity over the next two to three years in terms of generation, and increase our capacity in terms of battery storage by five times over the next two to three years.

Speaker #2: Thank you.

Speaker #1: Yeah, I think all our current perspectives on El Niño and weather in general are included in our outlook, and our guidance in terms of what we are seeing going forward.

Terje Pilskog: I think all our current perspectives on El Niño and weather in general are included in our outlook and our guidance in terms of what we are seeing going forward. As we have said in the presentation today, the probability of a strong El Niño towards the end of this year and beginning of next year is still high. But also as we have been presented when it comes to the Philippines, we have a technology portfolio and there is flexibility in terms of how we operate in that market. So there are other ways of managing that portfolio.

Speaker #1: And we have now, I believe, proven our execution capabilities in Egypt and across all the countries where we are operating. From an execution point of view, we are also ready to target this portfolio and move into construction across these different projects.

Speaker #1: And as we've said in the presentation today, the probability of a strong El Niño in towards the end of this year and the beginning of next year is still high.

Speaker #1: But also, as we have been presented, when it comes to the Philippines, we have a technology portfolio, and there is flexibility in terms of how we operate in that market.

Speaker #1: And finally, we also have the financial flexibility. We are continuing to strengthen our financial position and increase our financial flexibility in terms of moving forward and managing this portfolio.

Speaker #1: So there are other ways of managing that portfolio.

Speaker #2: Thank you, Terje. One from two questions from Jörgen Lande. Good morning. With the obelisk project delivered well into Q3, should we expect further continuous releases also in Q3?

Speaker #1: So, I believe that we are in a very good position to drive this growth going forward. Thank you. And with that, I think we will open for Q&A.

[Company Representative] (Scatec): Thank you, Terje. Two questions from Jørgen Lunde. Good morning. With the Obelisk project delivered well into Q3, should we expect further contingency releases also in Q3?

Terje Pilskog: I believe that we are in a very good position to drive now this growth going forward. Thank you. I think we will open for Q&A.

Speaker #2: Thank you, Tarjei Hans Jacob. Yes, we will then open up for Q&A. We will start with questions in the room here, and then we have a number of questions also from our online listeners.

[Company Representative] (Scatec): Thank you, Terje and Hans Jacob. Yes, we will then open up for Q&A. We will start with questions in the room here, and then we have a number of questions also from our online listeners. If you would like to ask a question, just raise your hand. Yes. Andreas.

Speaker #1: So yeah, obviously, this is our Q2 report, and we release quite a lot of contingencies now at the end of Q2, but we were still not finished with the project at the end of Q2.

Terje Pilskog: So yeah. Obviously, this is our Q2 report, and we released quite a lot of contingencies now at the end of Q2, but we were still not finished with the project at the end of Q2. So whether or not there will be any additional, that is subject to completing the project and having no surprises now towards the end.

Speaker #2: So, if you would like to ask a question, just raise your hand. Yes.

Speaker #1: So whether or not there will be any additional, that's subject to completing the project and having no surprises now towards the end.

Andreas Nævåg: Andreas Nævåg, Nordea. One question on the FIDs you are expecting to reach in H2 2026. You are now having a NOK 3.8 billion contract backlog for D&C. If you reach FID, what are you expecting to add to this contract backlog in H2 this year?

Andreas Nygård: Andreas Nygård, Nordea. One question on the FIDs you are expecting to reach in H2 2026. You are now having a NOK 3.8 billion contract backlog for D&C. If you reach FID, what are you expecting to add to this contract backlog in H2 this year?

Speaker #3: Andreas Nygård, Nordea. One question on the FIDs you're expecting to reach in the SECI now for '26. You now have a $3.8 billion contract backlog for DNC.

Speaker #2: Another one about Egypt. Good morning. With the obelisk project now delivered, your construction team in Egypt is idle. What are the remaining factors to decide on reach before you can start construction on energy value and/or Egypt aluminium?

[Company Representative] (Scatec): Another one about Egypt. Good morning. With the Obelisk project now delivered, your construction team in Egypt is idle. What are the remaining factors to decide on before you can start construction on Energy Valley and/or Egyptalum?

Speaker #3: If you reach FID, what are you expecting to add to this contract backlog in the second half of this year?

Speaker #1: Yeah, we haven't provided any guiding beyond the contract value, so we will have to come back with more specifics. That's a short answer to that.

Hans Jakob Hegge: Yeah, we have not provided any guiding beyond the contract value, so we will have to come back to more specifics. That is the short answer to that.

Speaker #1: From a permitting point of view and from securing everything that we need to move forward on those projects, everything is in place. What we are currently obviously working on now is preparing the EPC part, the execution part.

Terje Pilskog: From a permitting point of view and from securing everything that we need to move forward on those projects, everything is in place. What we are currently obviously working on now is preparing the EPC parts, the execution part, as well as completing the processes with the lending banks to make sure that we get through and finalize all agreements with the lenders, that we finalize the DD with the lenders, due diligence with the lenders. That is a certain process that we need to get through. Some of the lenders also have disclosure periods that they have to wait for. So once all of these things, which I consider more of administrative activities, given that they have been through them many times before, we will be ready to reach financial close.

Speaker #3: Okay, and then a second question from me. Data centers—is that something that is currently in your pipeline?

Andreas Nævåg: Okay, and then a second question for me. Data centers, is that something that is currently in your pipeline?

Andreas Nygård: Okay, and then a second question for me. Data centers, is that something that is currently in your pipeline?

Speaker #1: As well as completing the processes with the lending banks to make sure that we get through and finalize all agreements with the lenders, that we finalize the DD with the lenders, the due diligence with the lenders, and that is a certain process that needs we need to get through all some of the lenders also have disclosure periods that they have to wait for.

Speaker #1: Data centers are not in the pipeline specifically, and obviously, it always depends on what is included when you ask if data centers are in our pipeline.

Terje Pilskog: Data centers is not in the pipeline specifically, and obviously it always depends on what is included when you ask data centers is in our pipelines. Clearly, data centers is also being planned and developed in the countries where we are operating and will contribute to the demand for renewable energy also in the markets where we are. We do absolutely see benefits also from us from the current growth in data centers on a global basis.

Speaker #1: Clearly, data centers are always also being planned and developed in the countries where we are operating, and will contribute to the demand for renewable energy, also in the markets where we are.

Speaker #1: So once all of these things which I consider more of administrative activities, given that they've been through them many times before, we are we will be ready to reach financial close.

Speaker #1: So we do absolutely see benefits, also for us, from the current growth in data centers on a global basis.

Speaker #1: And as I've said, we expect that to happen for all these three projects over the next six months.

Terje Pilskog: As I have said, we expect that to happen for all these three projects over the next 6 months.

Speaker #3: And given that you're underground, for instance, in Egypt and South Africa, how have the discussions around data centers evolved over the last six to twelve months, and what is the potential scale for potential clients of yours in that regard?

Hans Jakob Hegge: Given that you are on the ground, for instance, in Egypt and South Africa, how have the discussions surrounding data centers evolved over the last 6 to 12 months, and what is the potential scale for potential clients of yours with that regard?

Andreas Nygård: Given that you are on the ground, for instance, in Egypt and South Africa, how have the discussions surrounding data centers evolved over the last 6 to 12 months, and what is the potential scale for potential clients of yours with that regard?

Speaker #2: Two questions from Anish Sagaya. Given the increase in consolidated net interest bearing debt, and the decline in total liquidity on a consolidated basis, can you provide more detail on the expected trajectory of net debt and liquidity over the second half of 2026, including contribution from project distributions, working capital, and potential asset rotations?

[Company Representative] (Scatec): Two questions from Honest Saga. Given the increase in consolidated net interest-bearing debt and the decline in total liquidity on a consolidated basis, can you provide more detail on the expected trajectory of net debt and liquidity over the H2 2026, including contribution from project distributions, working capital, and potential asset rotations?

Speaker #1: I think we are not going to, sort of, provide any speculation on that now. Obviously, as I said, we do see that data center activity is moving also in our region and in our countries.

Speaker #1: Yeah, I think I will repeat what I said in the first quarter, that this will vary over time. As the activity is high, so overall we have a strong liquidity position, and we also have the increased RCF.

Hans Jakob Hegge: Yeah, I think I will repeat what I said in Q1, that this will vary over time as the activity is high. So overall, we have a strong liquidity position and we also have the increased RCF. But the trend is the debt has been reduced over time, but NIBD will vary also with cash and working capital, as happened in this quarter.

Speaker #1: And then we will rather come back to that more specifically when there is something concrete on that.

Speaker #1: So but the trend is the debt has been reduced over time, but NIB will vary also with cash and working capital as happened in this quarter.

Speaker #3: Okay thank you.

Andreas Nævåg: Okay. Thank you.

Andreas Nygård: Okay. Thank you.

Speaker #2: Anyone else would like to ask a question? In the room? No? Then we’ll go over to our questions from our online listeners. We have one question about Egypt green hydrogen.

[Company Representative] (Scatec): Anyone else who would like to ask a question in the room? No. Then we go over to the questions from our online listeners. One question about Egypt Green Hydrogen. What is the latest on Egypt Green Hydrogen? When is an FID expected and are you on schedule for the deliveries planned under the H2Global mechanism?

Speaker #2: Could you walk us through the accounting of the Takadu construction contract so we include it to 55 million of revenues in the consolidated accounts?

[Company Representative] (Scatec): Could you walk us through the accounting of the Thakadu construction contract? So we included NOK 255 million of revenues in the consolidated accounts. Just explain a bit of the effect there.

Speaker #2: What is the latest on Egypt green hydrogen? When is an FID expected and are you on schedule for delivery for the deliveries planned under the H2 Global mechanism?

Speaker #2: So just explain a bit of the effect there.

Speaker #1: Yeah, yeah. In a Lyra is not the consolidated entity, so when it's not the consolidated entity, the revenues and the EPC contract is then recognized in the consolidated accounts.

Hans Jakob Hegge: Well, Lyra Energy is not a consolidated entity, so when it is not a consolidated entity, the revenues under the EPC contract is then recognized in the consolidated accounts. Unfortunately, according to IFRS, we are not able to include 100% of the margin in the consolidated accounts. So this is specific. We can only recognize 60% of the margin in the consolidated accounts, according to IFRS. So this is something for the ones that are deep into accounting.

Speaker #1: Yes, on the EGH project together with our partner Further Globe, we have everything prepared for that project and we are now awaiting certain clarifications in terms of regulations from the EU. Subject to getting those, we will be able to move forward and we will also be able to meet the contract obligations that Further Globe has towards H2 Global.

Terje Pilskog: Yes, on the EGH project, together with our partner, Ferroglobe, we have everything prepared for that project, and we are now awaiting certain clarifications in terms of regulations from the EU. Subject to getting those, we will be able to move forward, and we will also be able to meet the contract obligations that Ferroglobe has towards H2Global.

Speaker #1: Unfortunately, according to IFRS, we are not able to include 100% of the margin in the consolidated accounts. So this is a specific so we can only recognize 50% of the margin.

Speaker #1: According to in the consolidated accounts, according to IFRS. So this is something for the ones that are deep into accounting.

[Company Representative] (Scatec): A question about El Niño in the Philippines. Can you talk about the expected impact of El Niño and potentially super El Niño on the Philippines business and other geographies such as Brazil? Thank you.

Speaker #2: One question on Colombia. What is your take on the new administration in Colombia? Do you anticipate any change in energy policy?

[Company Representative] (Scatec): One question on Colombia. What is your take on the new administration in Colombia? Do you anticipate any change in energy policy?

Speaker #2: Thank you.

Speaker #1: Yeah, I think all our current perspectives on El Niño and weather in general are included in our outlook and our guidance, in terms of what we are seeing going forward.

Terje Pilskog: I think all our current perspectives on El Niño and weather in general are included in our outlook and our guidance in terms of what we are seeing going forward. As we have said in the presentation today, the probability of a strong El Niño towards the end of this year and beginning of next year is still high. As we have been presented when it comes to the Philippines, we have a technology portfolio and there is flexibility in terms of how we operate in that market. So there are other ways of managing that portfolio.

Speaker #1: Yeah, I'm not going to comment on sort of policy changes in Colombia now. I think it's too early, but so far we have not seen any indications of change there.

Terje Pilskog: I am not going to comment on policy changes in Colombia now. I think it is too early. But so far, we have not seen any indications of change there.

Speaker #1: And as we've said in the presentation today, the probability of a strong El Niño towards the end of this year and beginning of next year is still high.

Speaker #2: Yeah, it's another one. Also, connected to this Takadu project, I can just confirm that the cost of sales that we have in the consolidated is related to the Takadu project.

[Company Representative] (Scatec): There is another one also connected to this Thakadu project. I can just confirm that the cost of sales that we have in the consolidate is related to the Thakadu project. That was the question. With that, we have been through all the questions. I think then we end the presentation and thank everyone for listening. Thank you.

Speaker #1: But also, as we have presented, when it comes to the Philippines, we have a technology portfolio, and there is flexibility in terms of how we operate in that market.

Speaker #2: That was the question. With that, we've been through all the questions. I think then we end the presentation and thank everyone for listening. Thank you.

Speaker #1: So, there are other ways of managing that portfolio.

Speaker #2: Thank you, Tarjei. One of two questions from Jörgen Lande. Good morning. With the Obelisk project delivered well into Q3, should we expect further continuous releases also in Q3?

Terje Pilskog: Thank you.

[Company Representative] (Scatec): Thank you.

Hans Jakob Hegge: Thank you.

Speaker #1: So yeah, obviously this is our Q2 report, and we released quite a lot of contingencies now at the end of Q2, but we were still not finished with the project at the end of Q2.

Terje Pilskog: Well, obviously, this is our Q2 report, and we released quite a lot of contingencies now at the end of Q2, but we were still not finished with the project at the end of Q2. Whether or not there will be any additional, that is subject to completing the project and having no surprises now towards the end.

Speaker #1: So whether or not there will be any additional—that’s subject to completing the project and having no surprises now towards the end.

Speaker #2: Another one about Egypt. Good morning. With the Obelisk project now delivered, your construction team in Egypt is idle. What are the remaining factors to decide on REACH before you can start construction on Energy Valley and/or Egypt Aluminium?

[Company Representative] (Scatec): Another one about Egypt. Good morning. With the Obelisk project now delivered, your construction team in Egypt is idle. What are the remaining factors to decide on REACH before you can start construction on Energy Valley and/or Egyptalum?

Speaker #1: From a permitting point of view, and from securing everything that we need to move forward on those projects, everything is in place. What we are currently, obviously, working on now is preparing the EPC part—the execution part.

Terje Pilskog: From a permitting point of view and from securing everything that we need to move forward on those projects, everything is in place. What we are currently obviously working on now is preparing the EPC part, the execution part, as well as completing the processes with the lending banks to make sure that we get through and finalize all agreements with the lenders, that we finalize the DD with the lenders, due diligence with the lenders. That is a certain process that we need to get through. Some of the lenders also have disclosure periods that they have to wait for. Once all of these things, which I consider more of administrative activities, given that they've been through them many times before, we will be ready to reach financial close.

Speaker #1: As well as completing the processes with the lending banks to make sure that we get through and finalize all agreements with the lenders, that we finalize the DD with the lenders—due diligence with the lenders—and that is a certain process that we need to get through. Also, some of the lenders have disclosure periods that we have to wait for.

Speaker #1: So once all of these things, which I consider more of administrative activities—given that we have been through them many times before—we will be ready to reach financial close.

Speaker #1: And as I've said, we expect that to happen for all these three projects over the next six months.

Terje Pilskog: As I've said, we expect that to happen for all these three projects over the next six months.

Speaker #2: Two questions from Anish Sagaya. Given the increase in consolidated net interest-bearing debt and the decline in total liquidity on a consolidated basis, can you provide more detail on the expected trajectory of net debt and liquidity over the second half of 2026, including contribution from project distributions, working capital, and potential asset rotations?

[Company Representative] (Scatec): Two questions from Honest Igara. Given the increase in consolidated net interest-bearing debt and the decline in total liquidity on a consolidated basis, can you provide more detail on the expected trajectory of net debt and liquidity over the H2 2026, including contribution from project distributions, working capital, and potential asset rotations?

Speaker #1: Yeah, I think I will repeat what I said in the first quarter—that this will vary over time. As activity is high, we have a strong overall liquidity position, and we also have the increased RCF.

Hans Jakob Hegge: Yeah, I think I will repeat what I said in the Q1, that this will vary over time as the activity is high. Overall, we have a strong liquidity position, and we also have the increased RCF. But the trend is the debt has been reduced over time, but NIBD will vary also with cash and working capital, as happened in this quarter.

Speaker #1: So, the trend is that the debt has been reduced over time, but NIB will also vary with cash and working capital, as happened in this quarter.

Speaker #2: Could you walk us through the accounting of the Takadu construction contract so we include the 255 million of revenues in the consolidated accounts? Just explain a bit of the effect there.

[Company Representative] (Scatec): Could you walk us through the accounting of the Thakadu construction contract? We included 255 million of revenues in the consolidated accounts. Just explain a bit of the effect there.

Speaker #1: Yeah, Lyra is not the consolidated entity, so when it's not the consolidated entity, the revenues and the EPC contract are then recognized in the consolidated accounts.

Hans Jakob Hegge: Yeah. Lyra is not a consolidated entity. When it is not a consolidated entity, the revenues under the EPC contract is then recognized in the consolidated accounts. Unfortunately, according to IFRS, we are not able to include 100% of the margin in the consolidated accounts. This is specific. We can only recognize 50% of the margin in the consolidated accounts, according to IFRS. This is something for the ones that are deep into accounting.

Speaker #1: Unfortunately, according to IFRS, we are not able to include 100% of the margin in the consolidated accounts. So this is specific—so we can only recognize 50% of the margin.

Speaker #1: According to the consolidated accounts under IFRS, this is something for those who are deeply into accounting.

[Company Representative] (Scatec): Yeah. One question on Colombia. What is your take on the new administration in Colombia? Do you anticipate any change in energy policy?

Speaker #2: One question on Colombia: What is your take on the new administration in Colombia? Do you anticipate any change in energy policy?

Speaker #1: Yeah, I'm not going to comment on policy changes in Colombia now. I think it's too early, but so far we have not seen any indications of change there.

Terje Pilskog: I am not going to comment on policy changes in Colombia now. I think it is too early. So far, we have not seen any indications of change there.

Speaker #2: Yeah, it's another one. Also, connected to this Takadu project, I can just confirm that the cost of sales that we have in the consolidated is related to the Takadu project.

[Company Representative] (Scatec): Yeah, there is another one also connected to this Thakadu project. I can just confirm that the cost of sales that we have in the consolidate is related to the Thakadu project. That was the question. With that, we have been through all the questions. I think then we end the presentation and thank everyone for listening. Thank you.

Speaker #2: That was the question. With that, we've been through all the questions. I think then we will end the presentation and thank everyone for listening. Thank you.

Speaker #1: Thank you.

Terje Pilskog: Thank you.

[Company Representative] (Scatec): Thank you.

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Q2 2026 Scatec ASA Earnings Call

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