In its third-quarter 2023 report, Neoen disclosed a 12% increase in revenue for the first nine months of this year. The company’s unaudited revenue reached €397.5 million, representing a 12% growth at current exchange rates and a 16% growth at constant exchange rates compared to the same period in 2022.
Nevertheless, Neoen experienced an 8% decline in third-quarter revenue when compared to the third quarter of 2022, attributing this decrease to several Power Purchase Agreements (PPAs) coming into effect this year at prices lower than last year’s spot rates.
Neoen secured 912MW in new projects during the first nine months of the year, with 347MW awarded in the third quarter alone. This expanded its secured portfolio to 8.3GW as of September 30, with 7.2GW in assets either operational or under construction.
The company reaffirmed its adjusted EBITDA target for 2023, now expected to fall within the middle of the initial range of €460-490 million, along with an adjusted EBITDA margin exceeding 80%. Furthermore, Neoen reiterated its goals of achieving an adjusted EBITDA of over €700 million in 2025 and surpassing 10GW in operational or under-construction capacity by the end of 2025.
Xavier Barbaro, Neoen’s chairman and chief executive, commented “With every passing quarter, Neoen generates substantially larger volumes of electricity, demonstrating our ability to rapidly expand our portfolio of power plants and to deliver first-class operating performance.”
“The slower pace of growth of our cumulated revenue since the beginning of the year was widely anticipated and well taken into account in our guidance: as several major PPAs came into force, revenue streams at prices secured over the long term mechanically replaced last year’s early generation revenue, which was inflated by extremely high market prices.”
“Likewise, the highly volatile conditions in Australia’s electricity markets ratcheted up our storage revenue last year and made for an unfavourably high base of comparison for this period, something which was clearly identified. With our forecasts on track, we are reiterating our short- and medium-term targets.”
“Given our technological and geographical diversification and our model underpinned by a high proportion of contracted revenue streams, we are confident in our ability to deliver steady, solid and value-creating growth.”
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