March 26 (Renewables Now) - French renewables developer and power producer Neoen (EPA:NEOEN) on Thursday posted increased net profit and revenues for 2019, in line with its guidance, but said the COVID-19 fallout will impact its EBITDA in 2021.
The company explained that the outbreak of the novel infectious disease and the disruptions it will cause to the supply chain will hamper the construction start and commissioning of awarded projects and disrupt administrative procedures and project organisation. As a result, the capacity it will bring online in 2021 will be below that previously planned and 2021 EBITDA will be lower than the forecast EUR 400 million (USD 437.7m).
In terms of capacity, Neoen reiterated its goal of having over 5 GW in operation or under construction at the end of the same year. The capacity will be fully operational by end-2022.
The French firm closed 2019 with a consolidated net profit from continuing operations of EUR 21.2 million, marking a 48% year-on-year rise. Thanks to the contribution of all business segments -- wind, solar and storage -- EBITDA gained 30%, reaching EUR 216.1 million, and revenue improved by 22% when the sold biomass business is excluded. Revenue growth was significantly fuelled by the jump in solar sales and the commissioning of new capacity in the Americas, Australia and Europe-Africa regions.
More details about the company’s financial performance are available in the table below.
|Amounts in EUR millions, except percentages||2019||2018 restated|
|EBITDA margin (%)||85||80|
|EBITDA at constant exchange rates||217.2||166.5|
|Net profit from continuing operations||21.2||14.3|
|Consolidated net profit||37||13.5|
During the past year, Neoen added 369 MW of capacity to its portfolio and at end-2019 it had 1,847 MW of capacity in operation. Its total portfolio stood at 10,651 MW, including an advanced pipeline of 6,529 MW.
Looking ahead, the French company guided for EBITDA of between EUR 270 million and EUR 300 million for 2020, at constant exchange rates, and an EBITDA margin of around 80%. EBITDA is anticipated to pass the EUR-400-million threshold in 2022 after project commissioning ramps up.
(EUR 1.0 = USD 1.094)