It's a new year and I have added another renewable energy company to my green portfolio. Neoen is listed on the Paris exchange. It floated with an IPO in 2018 and has more than doubled it's market cap. over the past year to currently €5bn.
Neoen owns and operates a range of renewable energy operations in 14 countries around the world. They currently have 50 solar energy farms including the largest in France and this is the main source of revenues (47%). Onshore wind farms are operational in Australia, Finland, France and Ireland and capacity is now approaching 1GW. The third and fastest growing sector is energy storage and Neoen operate the world's largest lithium-ion battery plant at Hornsdale in Australia developed with Tesla.
The current target is for 5GW of operational capacity across these three renewable energy sources by the end of this year.
|Cestas Nr Bordeaux - Europe's largest solar farm|
According to the latest half-year report (pdf) to end June 2020, revenues increased by 33% to €157m and a robust cash holding of €590m. Assets in operation or under construction increased by 20% to 3.6GW over the 6 month period.
Energy storage contributed €24.6m to revenues in the first half, an increase of €16.2m or 193% compared to 2019.
Results for the full year are due mid February.
Neoen is a fast-growing global renewable energy company with a current portfolio capacity of over 3GW and a target of 5GW by 2022. The shares have had a good run this past few months in common with most other companies in the green energy sector. There may well be some pull back over the next few weeks/months which may have provided a better opportunity to add but as with so many others on my watchlist, they could just as easily keep rising so I have decided to bring this one on board now.
There are lots of positives which will drive forward the sector - the new president in the US and his pledge for a green deal, the EU's €1 trillion green deal which has just come into force, China announced it would hit peak carbon before 2030 and become carbon neutral by 2060 and the general global move towards net zero carbon emissions.
|Neoen 1 yr Share Price|
Obviously the excellent returns from my green portfolio over the past couple of years gives me the confidence to continue to expand this sector. Fingers crossed Neoen (and others) will continue to benefit from the transition away from fossil fuels.
The share price has risen over 100% from €30 this time last year and Neoen was added to my ISA at the price of €62.5 earlier this week. More on this following the release of full-year results.
As ever, this article is merely a record of my personal investment decisions and should not be regarded as an endorsement or recommendation... investing in individual companies can be rewarding but is higher risk compared to collective investments - always DYOR!