Neoen's revenues jump in H1 due to solar growth

French renewables developer and power producer Neoen reported a 30% increase, on a comparable basis, in first-half revenues to EUR 118.1 million (USD 131m) in 2019, following significant growth in solar energy sales.

The result excludes the biomass business, which the company has decided to sell in order to concentrate its efforts on the solar, wind and storage segments.

Neoen reported on Wednesday unaudited solar revenues of EUR 54.9 million for the first half, up by 82% year-on-year. The jump came as a result of capacity additions in 2018, especially in Australia. The solar share in Neoen’s consolidated revenues is now 46%, as compared to 33% a year before.

Wind revenues remained stable at EUR 52.7 million as the impact of lower weighted average prices for certain wind farms in Australia was partially offset by capacity additions in France.

Neoen has 1.58 GW of capacity in operation. It powered up 102 MW of power plants in the first half, located at home and in Zambia. Power generation was up 43% to 1,330 GWh. The load factors for the company’s solar and wind assets improved to 18% and 34%, respectively, from 16% and 33% in the first half of 2018.

Taking into account the divestment of the biomass business, Neoen now expects 2019 earnings before interest, tax, depreciation and amortisation (EBITDA) to stand between EUR 212 million and EUR 227 million, with an EBITDA margin of nearly 80% at constant exchange rates. The company still aims to have more than 5 GW of capacity in operation and under construction at the end of 2021, as compared to 2.84 GW in June. EBITDA in 2021 is forecast to be roughly EUR 400 million.

Neoen’s interim report will be published on September 25.

(EUR 1 = USD 1.11)

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