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However, the company’s third-quarter revenue dipped compared to the same period last year
Neoen has reported 12% revenue growth for the first nine months of this year as part of its third-quarter 2023 report.
The company’s unaudited revenue totalled €397.5m, up 12% at current exchange rates and up 16% at constant exchange rates compared to the first nine months of 2022.
However, the group’s third-quarter revenue was 8% lower than in the same quarter of 2022, with the company citing several PPAs entering into force this year at prices below last year’s spot levels.
Neoen was awarded 912MW in new projects during the first nine months of the year, including 347MW during the third quarter alone.
This brings its secured portfolio to 8.3GW as of 30m September, with 7.2GW in assets already in operation or under construction.
The group confirmed its adjusted EBITDA target for 2023, which is now expected towards the middle of the initial range of €460-490m, with an adjusted EBITDA margin exceeding 80%.
The group also reiterated its adjusted EBITDA target of over €700m in 2025 and its target of reaching over 10GW in capacity in operation or under construction by year-end 2025.
Neoen’s chairman and chief executive Xavier Barbaro commented: “With every passing quarter, Neoen generates substantially larger volumes of electricity, demonstrating our ability to rapidly expand our portfolio of power plants and to deliver first-class operating performance.
“The slower pace of growth of our cumulated revenue since the beginning of the year was widely anticipated and well taken into account in our guidance: as several major PPAs came into force, revenue streams at prices secured over the long term mechanically replaced last year’s early generation revenue, which was inflated by extremely high market prices.
“Likewise, the highly volatile conditions in Australia’s electricity markets ratcheted up our storage revenue last year and made for an unfavourably high base of comparison for this period, something which was clearly identified. With our forecasts on track, we are reiterating our short- and medium-term targets.
“Given our technological and geographical diversification and our model underpinned by a high proportion of contracted revenue streams, we are confident in our ability to deliver steady, solid and value-creating growth.” |
