Neoen (NEOEN) H1 2024 earnings summary

Executive summary

• Brookfield agreed to acquire over 53% of shares at €39.85 per share, a 26.9% premium, implying a €6.1 billion equity value; regulatory approvals expected by Q4 2024, with a tender offer in Q1 2025.

• H1 2024 revenue was €255.7 million, down 8% year-over-year, with adjusted EBITDA at €231.9 million, also down 8%.

• Electricity generation rose 7% year-on-year to 4.0 TWh, driven by new assets and higher solar output in Latin America.

• Secured portfolio grew by nearly 1 GW, reaching 10 GW, with 8.4 GW in operation or under construction.

• Major new contracts: 20-year capacity contract for Grey Owl Storage in Canada and 25-year corporate PPA with SNCF for Le Couret Solar Farm in France.

Financial highlights

• Revenue: €255.7 million in H1 2024, down 8% year-on-year; at constant exchange rates, down 7%.

• Adjusted EBITDA: €231.9 million, down 8% year-on-year; margin at 91%.

• Adjusted net income: €27.7 million, down from €63 million in H1 2023.

• Cash flow from operating activities: €207 million, up €32 million year-on-year.

• Gross debt: €4.3 billion, up €491 million since December 2023; net debt to adjusted EBITDA ratio at 8.1x.

Outlook and guidance

• 2024 adjusted EBITDA target confirmed at €530–560 million, with margin above 85%.

• 2025 targets reiterated: 10 GW in operation or under construction and adjusted EBITDA above €700 million.

• Guidance incorporates best estimates for project commissioning and spot prices.