Neoen's Hangover: Battery Decline & Solar Farm Contract Cuts Earnings
- Neoen: Australia's Leading Renewable Energy Developer - Revenues down 8% in Q3 but strong 9-month results. 412 MW Goyder South Wind, 219 MW/876 MWh Battery, 10 GW capacity by 2025+ - Ebitda €700 million+.
Neoen, the leading renewable energy and storage developer in Australia, has seen its latest quarterly revenues crimped by a combination of the transition of its biggest solar farm, the 400 MW Western Downs, to a fixed price contract and a fall in battery revenues after a bonanza period in 2022. The company posted a 8% drop in its 3rd quarter revenues to €120 million, although its nine-month revenues still looked strong with a 12% lift to €397.5 million. Neoen is currently building the 412 MW Goyder South wind project in South Australia, 4 big battery projects, and has a landmark 219 MW/876 MWh battery in Western Australia. It has become the first company to have more than 3GW of renewable capacity operating in Australia, and is targeting 10GW of capacity in operation or under construction by 2025 with Ebitda of more than €700 million.
What Impacted Neoen's Quarterly Revenues?
- The transition of Neoen’s biggest solar farm, the 400 MW Western Downs, from a variable to a fixed price contract impacted the company’s quarterly revenues.
- The Western Downs project was Neoen’s biggest solar farm, creating a significant portion of the company’s overall revenue.
- The transition from variable to fixed prices resulted in decreased quarterly revenues for Neoen.
- A decrease in battery revenues after a bonanza period in 2022 also impacted Neoen’s quarterly revenues.
- Battery revenues had been strong in 2022, but decreased in the subsequent quarter, contributing to the 8% drop in Neoen’s 3rd quarter revenues.
- Despite the decrease in quarterly revenues, Neoen’s nine-month revenues were still up 12%, indicating a successful year overall.
- Neoen is currently working on a number of projects that should help increase its revenue base, such as the 412 MW Goyder South wind project in South Australia and 4 big battery projects.
- The company is aiming to have 10GW of capacity in operation or under construction by 2025, with an Ebitda of €700 million or more.