Neoen to slightly exceed 2022 adj EBITDA target

French renewable power producer Neoen SA (EPA:NEOEN) on Wednesday said it expects its 2022 adjusted EBITDA to be slightly above EUR 410 million (USD 447m), just surpassing the company’s latest upgraded guidance.

In November 2022, Neoen set a target for adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) of EUR 390 million-410 million. The result it expects to report at the end of February would mark an increase from EUR 300 million in adjusted EBITDA in 2021.

The rise mainly reflects higher electricity generation due to Neoen’s expanded solar and wind capacity. The company also saw increased income from its larger storage capacity and higher merchant revenue thanks to higher electricity prices.

The renewables company said it ended the year with 6.6 GW of capacity in operation and under construction, up from 5.4 GW a year earlier. This is two-thirds of the way towards its 2025 target of 10 GW, the company noted.

Neoen’s secured portfolio, including assets in operation, under construction, and awarded projects, expanded to 7.4 GW at the end of 2022 from 6 GW a year earlier.

The company had a busy fourth quarter both in terms of contact wins and construction launches. The power purchase agreements (PPAs) secured include innovative deals such as a baseload contract with mining group BHP Group in Australia. Continuous green energy will be supplied through a combination of electricity generation, storage, and energy management.

The projects that started construction in the final quarter total 1 GW and are located in Finland, France, Portugal, and Australia, as well as new markets Canada and Sweden.

(EUR 1 = USD 1.089)

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