Storage boosts Neoen's Q3 revenue as wind, solar decline

French renewable power producer Neoen SA (EPA:NEOEN) booked a 2% year-on-year rise in third-quarter revenue thanks to the strong contribution of its energy storage business which offset the lower revenues from wind and solar generation.

Neoen closed the July-September trimester with consolidated revenues of EUR 122.7 million (USD 131.8m), against EUR 120.5 million a year back. The result improved after the storage business boosted its revenues by 77% on the year, to EUR 24.6 million, thanks to a strong rise in arbitrage revenue from the company’s Aussie fleet of batteries. In the meantime, wind revenue fell by 6% to EUR 47.1 million as a result of unfavorable wind conditions in France and lower contribution from the Mutkalampi wind farm in Finland and Australia’s Kaban wind complex. Revenue from solar operations contracted by 9% to EUR 51.1 million due to lower solar irradiation and the sale of several photovoltaic (PV) parks in France.

In the first nine months of 2024, Neoen saw its consolidated revenue slip by 5% at current exchange rates to EUR 378.4 million following the decreased revenue from assets in Finland and Australia. Additionally, the result suffered from the effect of long-term power purchase agreements (PPAs), while in the year-ago period the company booked early generation revenue from the contracted projects.

The company reaffirmed its 2024 adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) target of EUR 530 million-560 million, with an adjusted EBITDA margin above 85%, and restated its adjusted EBITDA target of over EUR 700 million for 2025. It also continues to expect to reach 10 GW of capacity in operation or under construction in the course of next year.

(EUR 1.0 = USD 1.074)

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