French renewable energy producer Neoen announced a decline in its first-half results on Thursday, attributed to a high comparison base from the previous year.
However, the company reported progress in its portfolio of solar and wind projects in Australia, France, and Canada.
Financial Performance and Acquisition Update
During the first six months, the company, which is in the process of being acquired by Canadian asset manager Brookfield, generated a net profit of 32.7 million euros, almost three times less than in the same period a year ago. Revenue also decreased by 8% to 256 million euros.
Neoen, now a leading independent producer of exclusively renewable energy, attributes this decline to the significant contribution in 2023 from several power plants when their contracts were launched.
Brookfield entered into exclusive negotiations with Neoen’s shareholders to acquire 53% of the company, founded in 2008. The share purchase agreement was signed on June 24th, with the usual regulatory approvals expected in the fourth quarter.
Growth in Project Portfolio and Secure Capacity
This semester, Neoen reports securing 1 gigawatt (GW) of new projects, including two large long-duration batteries. Its “secured” production capacity (operational, under construction, or awarded) now reaches the 10 GW threshold.
CEO’s Optimism and Future Outlook
CEO Xavier Barbaro expressed satisfaction with the company’s progress, stating, “We are pleased to announce particularly strong growth in the secured portfolio and half-year results in line with our expectations.”
“As we prepare to open a new chapter in our history with Brookfield as a shareholder, Neoen is better equipped than ever to pursue its value-creating growth strategy,” he added.
The group, targeting adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of between 530 and 560 million euros in 2024, “reiterates its ambition” to exceed 700 million euros in 2025.