After several quarters of decline, the French renewable energy producer Neoen reported a slight 2% increase in its revenue in the third quarter of 2024, reaching 123 million euros. This recovery was driven by its electricity storage activity, which experienced significant growth, partially offsetting declines in the solar and wind segments.
At the core of this positive trend, Neoen’s batteries played a key role. Indeed, the company optimized its arbitrage revenues through these devices, storing electricity when prices are low to resell when prices rise. This strategy proved particularly profitable in Australia, where Neoen benefited from a favorable market context in August. As a result, revenue from the storage activity doubled compared to the previous year, reaching 25 million euros in the third quarter.
Mixed Results in Solar and Wind
Despite this success in the storage sector, Neoen experienced a decline in revenue in its solar and wind activities. Revenue from solar plants amounted to 51 million euros in the third quarter, recording a 9% decrease year-on-year. This reduction is explained by the sale of several solar installations at the end of last year, combined with less favorable sunlight conditions during this period.
The wind sector, meanwhile, saw a 6% decline in its revenue, amounting to 47 million euros. Neoen noted that this decrease is related to the expected evolution of certain contract terms regarding two of its wind farms. Although these declines weighed on the overall balance sheet, the company is relying on the strength of its storage segment to stabilize its performance.
A Pending Acquisition and Maintained Objectives
In addition to its financial results, Neoen is on the verge of finalizing its acquisition by the Canadian asset manager Brookfield. This acquisition is expected to be completed by the end of the year, with a public offer launch planned for the first quarter of 2025, pending the necessary regulatory approvals.
Despite uneven performances across segments, Neoen reaffirmed its adjusted EBITDA target for 2024, projected between 530 and 560 million euros. This forecast is based on the performance of its storage activity, which has become a strategic pillar for the group in response to the volatility of more traditional segments.
