France’s Neoen (EPA:NEOEN) boosted its revenues in January-September 2022 by 46% on the year thanks to the expansion of its portfolio, allowing it to once again increase its full-year forecast for adjusted EBITDA.
The renewables developer and power producer anticipates adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of between EUR 390 million (USD 386m) and EUR 410 million in 2022, it said on Thursday. The new outlook compares with earlier guidance of EUR 380 million-400 million. Meanwhile, the adjusted EBITDA margin is seen to range from 80% to 85% rather than 80-90%.
Neoen made the latest revision several months after the initial upgrade of its 2022 forecast, released in August following the company’s robust performance in the second quarter. The company explained that the new goals reflect its performance in the third quarter and the early generation revenue in Europe, as well as funds from asset disposals.
In the first nine months of 2022, Neoen generated revenues of EUR 354.6 million, experiencing strong growth in each of its three business segments. The most notable increase was in the storage business, where the operation of the Victorian Big Battery in Australia was a major driver. Power generation rose by 20% on the year to 4.2 TWh.
The contribution of each segment to the overall result can be seen in the table.
| Amounts in EUR million |
9mo 2022 |
9mo 2021 |
Q3 2022 |
Q3 2021 |
| Solar |
147.5 |
123 |
48.0 |
38.1 |
| Wind |
141.1 |
94.3 |
56.2 |
28.1 |
| Storage |
65.4 |
23.8 |
26.0 |
10.5 |
| Other |
0.7 |
1.5 |
0.3 |
1.0 |
| Consolidated revenue |
354.6 |
242.7 |
130.5 |
77.7 |
“This growth derives first and foremost from the steady expansion in our portfolio of assets in operation,” said chairman and CEO Xavier Barbaro.
At the end of September, Neoen had 3,589 MW of plants in operation plus 1,973 MW of projects under construction. The company’s total secured portfolio surpassed 6,300 MW.
Neoen confirmed its goal of having over 5 GW in operation in 2023 and at least 10 GW in operation or under construction by the end of 2025. The company still expects double-digit annual growth in adjusted EBITDA between 2022 and 2025.
(EUR 1.0 = USD 0.990)
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Hornsdale Power Reserve. Image by: ARENA (www.arena.gov.au).
