Renewable energy company Neoen has unveiled its third-quarter report for 2023, showcasing robust financial performance with a 12% year-on-year increase in revenue for the first nine months of this year. The unaudited revenue for the period reached €397.5 million, reflecting a 16% growth when accounting for constant exchange rates.
While Neoen's revenue remained strong for the year, the company reported an 8% decline in third-quarter revenue compared to the same period in 2022. The decrease was attributed to several Power Purchase Agreements (PPAs) coming into effect during the year at prices below the elevated spot market levels of the previous year.
Neoen's success in securing new projects was a notable highlight, with the company being awarded 912 megawatts (MW) in the first nine months of 2023, including 347 MW in the third quarter alone. This achievement bolstered the company's secured portfolio, which now stands at 8.3 gigawatts (GW) as of September 30, 2023, with 7.2 GW of assets either in operation or under construction.
The group affirmed its adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) target for 2023, which is expected to fall within the middle of the initial range of €460-490 million, coupled with an EBITDA margin exceeding 80%.
Neoen also restated its aim to achieve an adjusted EBITDA of over €700 million by 2025 and to expand its capacity to over 10 GW in operation or under construction by the end of 2025.
Xavier Barbaro, Chairman and Chief Executive of Neoen, commented on the company's performance, emphasizing its ability to steadily increase electricity production and expand its portfolio of power plants. He acknowledged that the slower revenue growth rate in 2023 was anticipated, attributing it to the transition from short-term spot market pricing to long-term contracted revenue streams. Despite the market dynamics, Neoen remains confident in its short- and medium-term targets, underpinned by its diversified and contracted revenue model.