Neoen, an international company specializing in the production ofrenewable energy, recently announced its financial results for the first nine months of 2023. Total sales reached 397.5 million euros, representing a 12% increase over the same period in 2022.
Third-quarter challenges
This growth is all the more remarkable given the significant fluctuations in the electricity market over this period. In the third quarter of 2023, however, sales were slightly down by 8% on the same period of the previous year. This decrease is largely due to the entry into force of several power purchase agreements (PPAs) at prices below the previous year’s levels.
Projects won and portfolio secured
Among the highlights of the period, Neoen won projects with a total capacity of 912 MW in the first nine months of the year, including 347 MW in the third quarter alone. The company’s secured portfolio reached 8.3 GW at September 30, 2023, with 7.2 GW of assets already in operation or under construction.
Financial targets confirmed
The Group also confirmed its financial targets for 2023. Adjusted EBITDA is now expected to be around the middle of the initial range of 460 million euros to 490 million euros, with an adjusted EBITDA margin in excess of 80%. In addition, Neoen reiterates its adjusted EBITDA target of over 700 million euros in 2025, and aims to achieve a total capacity of over 10 GW in operation or under construction by the end of 2025.
Commentary by CEO Xavier Barbaro
Commenting on these results, Xavier Barbaro, Chairman and CEO of Neoen, emphasized the company’s ability to generate more and more electricity quarter after quarter. He explained that the slower sales growth during the year was expected, as several major PPAs replaced the previous year’s generation revenues, which had been boosted by high market prices. In addition, volatile conditions on Australia’s electricity markets had an impact on storage revenues.
