By Dina Kartit
(Reuters) - Neoen on Thursday raised its adjusted EBITDA growth forecast for the year, driven by high spot prices benefits and a steady portfolio asset expansion.
The renewable energy company now expects its adjusted core profit to grow between 390 million ($380.45 million) euros and 410 million euros in 2022, against 380 million and 400 million euros it previously estimated.
Its long-term power purchase agreements model generated additional demand which is expected to be priced at higher levels than in the past, said Chief Executive Xavier Barbaro said in a quarterly earnings report.
"Neoen is ideally placed to benefit from the acceleration in the development of renewable energies, which provide green, local and competitive electricity."
The group slightly lowered its EBITDA margin forecast to between 80% and 85% but maintained an annual double-digit growth target between 2022 and 2025.
The group's secured portfolio capacity stood at over 6.3 GW at September 30, 2022 and its total portfolio was 18.1 GW, up 4.2 GW year on year.
Its portfolio includes a 40 MW power purchase agreement (PPA) for its Goyder South Stage 1 wind farm with flow power in Australia it signed in August as well as 42 MW also awarded under the PPA with Equinix in Finland covering the Lumivaara wind farm in July.
The company, which is present in Australia, Mexico, Egypt, and Mozambique, among other countries, reported a revenue of 130.5 million euros in the third quarter, up 68% year-on-year.
($1 = 1.0251 euros)