AES Agrees to Sell Mong Duong 2 Coal-Fired Plant in Vietnam

Rhea-AI Summary

The AES Corporation (NYSE: AES) has signed an agreement to sell its 51% stake in the 1,242 MW Mong Duong 2 coal-fired power plant in Vietnam to a US-led consortium. The deal, finalized on December 31, 2020, is expected to close by early 2022, pending necessary approvals. AES's CEO, Andrés Gluski, emphasized the company's commitment to sustainable energy and ongoing projects like the Son My LNG terminal and Son My 2 gas power plant in Vietnam. This move aligns with AES's global strategy to invest in renewable energy and LNG infrastructure.

Positive

• Alignment with global strategy focused on renewables and LNG infrastructure.
• Continued development of significant projects in Vietnam, including the Son My LNG terminal.

Negative

• Sale of Mong Duong 2 may impact revenue from coal operations.
• Dependence on regulatory approvals from the Government of Vietnam for transaction closure.

ARLINGTON, Va., Jan. 4, 2021 /PRNewswire/ -- The AES Corporation (NYSE: AES) signed an agreement on December 31, 2020 to sell its entire equity interest in the 1,242 MW Mong Duong 2 coal-fired power plant in Vietnam to a consortium led by a US-based investor.  This transaction is expected to close in late 2021 or early 2022, subject to customary approvals, including from the Government of Vietnam and the minority partners in Mong Duong 2. 

"We have had a very positive experience in developing, building and owning Mong Duong 2 and Vietnam remains an important growth market for AES, where we look forward to contributing to the country's transition to a more sustainable energy future," said Andrés Gluski, AES President and Chief Executive Officer.  "In line with our global strategy to invest in renewables and LNG infrastructure, in Vietnam we continue to make good progress on the development of the 450 TBTU Son My LNG terminal with PetroVietnam (PVN) and the 2,250 MW Son My 2 combined cycle gas power plant." 

AES owns a 51% equity interest in Mong Duong 2, Posco Energy Company Limited owns 30% and Stable Investment Corporation, a subsidiary of China Investment Corporation, owns the remaining 19%.  The construction of Mong Duong 2 was completed in 2015 under a Build-Own-Transfer (BOT) contract, with a 25-year Power Purchase Agreement (PPA) with Vietnam Electricity (EVN), a state-owned utility.

About AES

The AES Corporation (NYSE: AES) is a Fortune 500 global energy company accelerating the future of energy.  Together with our many stakeholders, we're improving lives by delivering the greener, smarter energy solutions the world needs.  Our diverse workforce is committed to continuous innovation and operational excellence, while partnering with our customers on their strategic energy transitions and continuing to meet their energy needs today.  For more information, visit www.aes.com.

Safe Harbor Disclosure

This news release contains forward-looking statements within the meaning of the Securities Act of 1933 and of the Securities Exchange Act of 1934. Such forward-looking statements include, but are not limited to, those related to future earnings, growth and financial and operating performance. Forward-looking statements are not intended to be a guarantee of future results, but instead constitute AES' current expectations based on reasonable assumptions. Forecasted financial information is based on certain material assumptions. These assumptions include, but are not limited to, our expectations regarding the COVID-19 pandemic, accurate projections of future interest rates, commodity price and foreign currency pricing, continued normal levels of operating performance and electricity volume at our distribution companies and operational performance at our generation businesses consistent with historical levels, as well as the execution of PPAs, conversion of our backlog and growth investments at normalized investment levels and rates of return consistent with prior experience.

Actual results could differ materially from those projected in our forward-looking statements due to risks, uncertainties and other factors. Important factors that could affect actual results are discussed in AES' filings with the Securities and Exchange Commission (the "SEC"), including, but not limited to, the risks discussed under Item 1A: "Risk Factors" and Item 7: "Management's Discussion & Analysis" in AES' 2019 Annual Report on Form 10-K and in subsequent reports filed with the SEC. Readers are encouraged to read AES' filings to learn more about the risk factors associated with AES' business. AES undertakes no obligation to update or revise any forward looking statements, whether as a result of new information, future events or otherwise.

Any Stockholder who desires a copy of the Company's 2019 Annual Report on Form 10-K filed February 27, 2020 with the SEC may obtain a copy (excluding Exhibits) without charge by addressing a request to the Office of the Corporate Secretary, The AES Corporation, 4300 Wilson Boulevard, Arlington, Virginia 22203. Exhibits also may be requested, but a charge equal to the reproduction cost thereof will be made. A copy of the Form 10-K may be obtained by visiting the Company's website at www.aes.com.

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SOURCE AES CORP.

FAQ

What is the recent agreement signed by AES regarding the Mong Duong 2 plant?

AES has agreed to sell its 51% share in the Mong Duong 2 coal-fired power plant in Vietnam to a US-led consortium.

When is the expected closing date for AES's sale of Mong Duong 2?

The sale is expected to close in late 2021 or early 2022, subject to governmental approvals.

How does the sale of Mong Duong 2 affect AES's business strategy?

The sale is part of AES's strategy to transition towards renewable energy and LNG infrastructure.

What projects is AES pursuing in Vietnam?

AES is developing the Son My LNG terminal and the Son My 2 combined cycle gas power plant in Vietnam.