In the latest financial update from Neoen, a prominent player in the renewable energy sector, the company revealed a notable 11% uptick in electricity generation from its renewable energy assets during the first quarter of 2024. Despite this impressive increase, revenue experienced a marginal decline compared to the same period last year.
During Q1, electricity generation soared to just over 2 terawatt hours, showcasing Neoen's continued commitment to bolstering clean energy production. However, revenue figures dipped by 8% at current exchange rates, amounting to €141.4 million. This slight downturn was attributed to the gradual implementation of power purchase agreements (PPAs) from April 2023, which initially bolstered early generation revenue.
Xavier Barbaro, Neoen's Chairman and Chief Executive Officer, reaffirmed the company's ambitious targets for the current and upcoming years. He stated, “We have made a good start to the year, winning some impressive projects and posting revenue in line with our expectations.”
Neoen remains steadfast in its pursuit of growth, with a secured portfolio standing at nearly 9.1GW by the end of March 2024. Of this capacity, 8GW is either operational or under construction. The company reiterated its adjusted EBITDA target for 2024, aiming for a range between €530 million and €560 million, with an adjusted EBITDA margin exceeding 85%.
Looking ahead, Neoen is optimistic about its revenue trajectory, anticipating a return to growth in the coming quarters. This optimism is fueled by the gradual commissioning of 3GW in assets currently under construction. Noteworthy among these are several long-duration batteries, aligning with Neoen's strategic goals outlined over a year ago.
Barbaro highlighted the significance of Neoen's contributions to grid reliability, citing the recent award of a contract for a new 300 MW/4-hour storage capacity project in Western Australia. He emphasized, “The new 300 MW/4-hour storage capacity contract awarded in Western Australia is a testament to the value of the solutions we can provide to enhance grid reliability.”
With a burgeoning portfolio of batteries, totaling 1.9GW/4.5GWh in operation or under construction, Neoen solidifies its position as a global leader in storage solutions.
