Lower storage revenue drags down Neoen's Q1 top line

France’s Neoen SA (EPA:NEOEN) today posted a 16% year-on-year drop in first-quarter revenues and reiterated its full-year EBITDA forecast.

The company booked unaudited consolidated revenues of EUR 80.2 million (USD 97.3m), down from EUR 95.8 million in the year-ago period, which benefited from a better revenue contribution from storage activities in Australia and stronger winds in Europe. At constant exchange rates, total revenue was 17% lower.

This year’s Q1 top-line result was almost equally brought by Neoen’s solar and wind operations. While revenues at the solar segment remained largely unchanged, those from wind power were 3% higher. The storage segment revenue experienced a 75% drop on a yearly basis. The three segments accounted for 47%, 46% and 7% of Neoen’s consolidated revenues, respectively.

Solar revenues amounted to EUR 38 million compared to EUR 38.2 million a year ago. The company said that the contribution of plants commissioned in 2020 was enough to offset lower market prices in January-March 2021.

Wind revenues came at EUR 36.7 million, with the 3% increase being helped by new capacity that was brought online in Finland and France and the early-generation revenue from a wind farm in Australia. Revenues from the storage segment totalled EUR 5.3 million.

At the end of March, the French firm had 12,660 MW of assets in its portfolio, including 2,625 MW of capacity in operation and 1,520 MW under construction. The quarterly output of its facilities was 1,256 GWh, up 13% year-on-year.

Neoen confirmed its earnings before interest, tax, depreciation and amortisation (EBITDA) target of between EUR 295 million and EUR 325 million for 2021, expecting an EBITDA margin of around 80%. In terms of capacity, it will aim to have over 5 GW in operation or under construction by end-2021.

(EUR 1.0 = USD 1.214)

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