Neoen Sustainability Reporting - Q3 2021

  

As a company with sustainable energy embedded in its business model, Neoen enjoys an image of a green company that initiates the Green turn in the economy with increasing capacity in electricity production. It is furthermore attractive as we currently face a pressure from climate change watchdogs to adapt electricity production and overall natural resources consumption.

It is important to add that on top of its environmental business model, the company values transparency and dialogues, and puts a lot of effort in developing its relations with communities, ensuring improving working conditions and leaving the place better than it was.

With this in mind, it became interesting to study the sustainable reporting of a company that fights for more energy sustainability. Because participating in the green energy transition doesn’t necessarily mean the company perform well in the environmental requirements asked by certifying agencies or NGOs and other watchdogs.

*

This report has been redacted from March to September 2021. The analysis is based on the 2019 and 2029 published annual reports with an update on content taking into account the H1 comments and management's objectives and projections, along with CSR and Green recent bonds publications.

Report extract link:   Neoen Sustainability Reporting one pager - September 2021

Read More

Neoen Equity Research Report - Q3 2020

 

    Neoen is what professional medias like to call a success story. Since 2008, the company produces and sells renewable energy to multinationals and industrials such as Electricité de France. While big players were encouraged to invest in green energies using subsidies, Neoen applied this trend to its core business model which made it popular and a symbol of the energy transition.

After 12 years, Neoen is in France the first independant renewable energy producer with more than 3GW of production capacity: wind, solar and storage. Costs of production in the solar energy processes are constently decreased, the transportation logistics are getting more and more easy, and this without mentioning the improvement in the storage technologies. Thus, the company has taken quite an interesting place worldwide and is now known to be a reliable partner for self-sufficiency energy strategy and for increasing the Green in the energy mix of countries.

Neoen went public in 2018 at €18 per share in the objective to finance the expansion of its installed capacity to support its continued growth. The company is appealing to investors due to several key strengths: 

• It generates profit since 2011 although it still hasn't announced dividends;

• The growth rates of the last 4 years show a great dynamic, this with future revenues secured by projects awarded or under-construction;

• The current trend of renewable energies ensures a developing market and put the spotlights on Neoen as a fast-growing company;

*

This report has been redacted in January using H1 and Q3 official reports. The analysis is based on the 2019 published results with an update on assumptions taking into account the H1 comments and management's objectives and projections.

Over the last quarter, Neoen's share price has skyrocketed to all-time prices never seen before, reaching the difficult objective of €60 and then €70. However, like Albioma, another popular green stock, Neoen has seen an increase of interest and took advantage of the shift in green companies that happened after March 2020. The following analyzes provide assumptions backed by financial modeling and are proposed as an indication of Neoen's range of pricing over the next years following a growth pattern.

Report link:   Neoen ER - January 2021

Read More