Neoen upgrades 2022 EBITDA forecast after strong H1

Neoen's Cestas solar park. Photo by: Neoen (www.neoen.com).

August 2 (Renewables Now) - French renewables developer and power producer Neoen (EPA:NEOEN) has revised upwards its 2022 forecast as adjusted EBITDA jumped 39% year-on-year in the first half.

The company now expects to close the year with adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of between EUR 380 million (USD 389m) and EUR 400 million, against an earlier forecast of EUR 360 million- EUR 375 million.

Adjusted EBITDA margin, in the meantime, previously seen to be within the 85%-90% range, is anticipated to stand at between 80% and 90%.

The higher target reflects the robust performance in the second quarter, especially by the storage business in Australia, the rate of progress on construction projects and a favorable market price environment, Neoen said on Friday.

“We are also very proud to have been awarded further tenders for solar projects in France and Ireland and to have launched the construction of our first wind farm in Sweden. Our ambition is to play a major role in the energy transition in these countries, as well as in all those where we have established a presence while contributing to their economic competitiveness and strengthening their energy sovereignty. In this context, we are raising our target for the full-year,” said CEO Xavier Barbaro.

In the first half of 2022, Neoen recorded an adjusted EBITDA of EUR 175 million, which rose mainly thanks to the contribution of assets commissioned in 2021 and in the first six months of this year. The prior-year reporting period also included penalties related to a power purchase agreement and liquidated damages.

Due to an increase in adjusted tax expenses, the company’s consolidated adjusted net income plunged by 67% in annual terms. Revenues gained 36% as new power plants started generating electricity in Argentina, Australia and France.

More details about Neoen’s performance can be seen in the table.

Amounts in EUR million H1 2022 H1 2021
Revenue 224 164.9
Adjusted EBITDA 175 125.9
-- from solar 88.7 73.1
-- from wind 73.5 53.9
-- from storage 28.2 11.1
Adjusted EBITDA margin 78% 76%
Adjusted EBIT 103 72.3
Adjusted consolidated net income 1.4 4.2

At end-June, Neoen had 3.58 GW of capacity in operation, against 3.48 GW at end-2021, while 1.98 GW of projects were under construction. The company’s total secured portfolio amounted to 6.26 GW.

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 1.024)

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