French renewable energy company Neoen announced a significant revenue increase of 42% for the first quarter, driven by the recent addition of capacity to meet the surging demand for renewable energy. The company, which specializes in solar farms, onshore wind and energy storage, reported that revenue rose to €154.4 million ($169.65 million) for Q1 2023, primarily due to wind and solar farms that started generating income.
According to Neoen's earnings statement, the company recorded electricity generation amounting to 2.0 terawatt hour (TWh), up 32% from the year-ago quarter. This tremendous growth in revenue outstripped even the increase in power generation, demonstrating the top-line contribution made by recent capacity additions. “The growth in our revenue, which outstripped even the increase in our power generation, shows the very large top-line contribution made by our recent capacity additions,” said Chief Executive Xavier Barbaro.
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In early March, Neoen launched a €750 million rights issue to finance all of its anticipated investments over the 2023-2025 period and increase its installed capacity by 50%. With the funds raised, Barbaro said the group will be able to accelerate its growth “in an environment definitively set to remain positive for renewable energies.”
The report released in April found that wind and solar accounted for a record 12% of global electricity generation last year, up from 10% in 2021, demonstrating the continued growth of renewable energy worldwide. Neoen affirmed its guidance for the year and beyond, highlighting the company's ongoing commitment to providing sustainable, renewable energy to consumers.
Barbaro added, “We remain very confident in our ability to continue delivering strong growth while maintaining a low carbon footprint, and we are committed to contributing to the energy transition and to the fight against climate change.”
