• Based on its latest estimates, Neoen expects its 2022 adjusted EBITDA¹ to reach slightly above €410 million, surpassing the previously announced target² 
• In addition, Neoen won an impressive number of new contracts in late 2022 
• Neoen also launched the construction of 1.0 GW in solar, wind energy and storage assets during the fourth quarter of 2022 
• The secured portfolio³ therefore increased by over 1.3 GW compared to year-end 2021, reaching 7.4 GW at year-end 2022 
• Neoen ended 2022 with 6.6 GW in capacity in operation and under construction, versus 5.4 GW at year-end 2021 

Neoen (ISIN: FR0011675362, Ticker: NEOEN), one of the world’s leading independent producers of exclusively renewable energy, today estimates that its 2022 adjusted EBITDA is likely to slightly exceed €410 million, ahead of the previous target of €390–410 million set in November 2022. Neoen had already raised its guidance twice during the year, after initially setting a target of between €360 million and €375 million in March 2022. Neoen’s latest 2022 estimate represents an increase of over 36% on the €300 million in adjusted EBITDA recorded in 2021. 

The larger volume of electricity generated by Neoen as a result of the growth in its solar and wind capacity was the main factor accounting for this strong increase. To a lesser extent, Neoen also recorded higher income from its larger storage capacity, while its merchant revenue stream also rose as a result of higher electricity prices. 

Neoen experienced a very high level of activity across all regions at the end of the year both in terms of new contract wins, including innovating contracts and number of launched constructions, which translated into a 1.0 GW increase in its secured3 portfolio during the fourth quarter of 2022 alone. 

Xavier Barbaro, Neoen’s Chairman and Chief Executive Officer, commented: “The strong growth in our 2022 EBITDA primarily stems from the increase in our production capacity. We are proud to have been able to supply even more decarbonized, competitively priced, locally generated electricity. As we have achieved a sixfold increase in our capacity in operation or under construction in six years, we are delighted to be two-thirds of the way already towards our 2025 target of 10 GW. Our portfolio of secured projects also grew substantially in 2022, directly in line with our roadmap presented in 2021: we have actively expanded in Corporate PPAs, extended our leadership in storage, where we broke through the gigawatt barrier, strengthened our energy management expertise and enhanced our geographical coverage. Today more than ever, Neoen is demonstrating its ability to execute its business plan and to differentiate itself by delivering ambitious, profitable and sustainable growth.” 

The details of the main agreements secured by Neoen during the fourth quarter of 2022 are as follows: 

• Neoen’s first renewable energy baseload contract (70 MW) agreed with mining group BHP in Australia; 

• 180 MW in new solar and wind projects, awarded in the latest technology-neutral competitive tender held by the French government via the CRE (Energy Regulation Commission) multi-year energy plan (PPE2), with Neoen emerging as the biggest winner in both the solar and wind segments; 

• First utility-scale solar PPA in Sweden with H&M for the 90 MWp Hultsfred photovoltaic farm; 

• Third PPA signed by Neoen and Prokon with Equinix in Finland for 57 MW of wind power; 

• A corporate PPA with TDF covering 62 MWp of solar power in France; 

• 215 MW PPA with Stanwell for the Mount Hopeful wind farm to be built in Queensland, Australia 

• PPA with Coveris covering more than 60% of the electricity to be generated by the 57 MW Storbrännkullen wind farm currently under construction. 

The baseload PPA with BHP is of particular importance to Neoen because it represents a major innovation. Neoen is now able to provide a continuous supply of green energy to its customers by combining electricity generation, storage and energy management. During the fourth quarter, Neoen also broke new ground with its Yllikkälä Power Reserve providing a rapid reserve service during commissioning of Finland’s Olkiluoto 3 EPR. 

During the fourth quarter of 2022, Neoen also launched the construction of several projects representing 1.0 GW in total capacity. These projects are located both in countries where Neoen has a longstanding presence (Finland, France, Portugal and Australia) and in new countries for the Group (Canada and Sweden). The details are as follows: 

• Portugal’s largest solar farm at Rio Maior, with 272 MWp in capacity; 

• Fox Coulée, its first photovoltaic farm in Canada, with 93 MWp in capacity; 

• Western Downs Battery (200 MW/400 MWh) in the State of Queensland, its fourth big battery in Australia; 

• Blyth Battery (200 MW/400 MWh) in Southern Australia, its fifth big battery in Australia; 

• Storen Power Reserve (40 MW/40 MWh), its first battery in Sweden; and 

• 192 MW in solar and wind energy projects in France. 

Overall, the Group’s secured portfolio3 reached 7.4 GW at December 31, 2022, up from 6.3 GW at September 30, 2022, and 6.0 GW at December 31, 2021. 

In addition, with the launch of the construction of projects totaling 1.0 GW in the fourth quarter, Neoen’s capacity in operation or under construction went up from 5.6 GW at September 30, 2022, to 6.6 GW at December 31, 2022, versus 5.4 GW at December 31, 2021. 

Together with the presentation of its full-year results to investors, Neoen will present on the morning of March 1, 2023, a detailed update on progress at the halfway stage of its 2021–2025 strategic plan. 

This presentation contains forward-looking statements regarding the prospects and growth strategies of Neoen and its subsidiaries (the “Group”). These statements include statements relating to the Group’s intentions, strategies, growth prospects, and trends in its results of operations, financial situation and liquidity. Although such statements are based on data, assumptions and estimates that the Company considers reasonable, they are subject to numerous risks and uncertainties and actual results could differ from those anticipated in such statements due to a variety of factors, including those discussed in the Group’s filings with the French Autorité des marchés financiers (AMF) which are available on the website of Neoen (www.neoen.com). Prospective information contained in this presentation is given only as of the date hereof. Other than as required by law, the Group expressly disclaims any obligation to update its forward looking statements in light of new information or future developments. 

Next financial reports 

• Full-year 2022 results: February 28, 2023 

• Investor and analyst presentation: March 1, 2023, am 

• First-quarter 2023 revenue and operational highlights: May 2, 2023 

• First-half 2023 earnings: July 27, 2023 

• Nine-month 2023 revenue and operational highlights: November 2, 2023 

 ¹ Adjusted EBITDA corresponds to current operating income, which includes the net proceeds from asset disposals from the secured portfolio linked to farm-down transactions, restated for: 

• current operating depreciation, amortization and provisions 
• the expense resulting from application of IFRS 2 – “Share-based payments”, and 
• the change in the fair value of energy derivatives. 

² Range of between €390 million and €410 million announced in November 2022 

³ Assets in operation, under construction and projects awarded