AES Announces Sale of Mong Duong 2 Plant in Vietnam in Next Decarbonization Milestone

Rhea-AI Summary

The AES Corporation (NYSE: AES) has reached an agreement with Se.ven Global Investments to sell its 51% equity stake in the Mong Duong 2 coal-fired plant in Vietnam. The anticipated close for the transaction is in line with AES' intent to exit the majority of its coal assets by the end of 2025. The 1,242 MW plant has been in operation since 2015, delivering power to Hanoi and northern Vietnam under a 25-year Power Purchase Agreement (PPA) with state-owned utility Vietnam Electricity (EVN). AES continues to develop the 450 TBTU Son My LNG terminal with PetroVietnam Gas (PV Gas), which received Investment Policy Approval by Binh Thuan People's Committee in July 2023, and the 2,250 MW Son My 2 combined cycle gas power plant in Vietnam.

Positive

• Agreement reached with Se.ven Global Investments for the sale of 51% equity stake in Mong Duong 2 coal-fired plant
• Intent to exit majority of coal assets by end of 2025 aligns with low-carbon goals
• Development of Son My LNG terminal and Son My 2 combined cycle gas power plant in Vietnam

Negative

• None.

ARLINGTON, Va., Nov. 30, 2023 /PRNewswire/ -- The AES Corporation (NYSE: AES) announced it has reached an agreement with Se.ven Global Investments to sell its 51% equity stake in the Mong Duong 2 coal-fired plant in Vietnam. Following approvals by the Government of Vietnam and the Ministry of Industry and Trade, the anticipated close for the transaction is in line with AES' intent to exit the majority of its coal assets by the end of 2025.

The 1,242 MW plant has been in operation since 2015, delivering power to Hanoi and northern Vietnam under a 25-year Power Purchase Agreement (PPA) with state-owned utility Vietnam Electricity (EVN). 

"AES values its strong business relationship with Vietnam, where we have been a strategic partner delivering reliable power while supporting Vietnam's long-term energy transition goals," said Juan Ignacio Rubiolo, AES EVP and President, Energy Infrastructure. "This sale would advance AES' low-carbon goals while enabling AES to continue to play a role advancing diverse energy solutions to meet the growing electricity demand in the country."

Based in Czech Republic, Se.ven is a family-owned company with expertise developing and operating conventional power plants and mining assets around the world.

AES continues to develop the 450 TBTU Son My LNG terminal with PetroVietnam Gas (PV Gas), which received Investment Policy Approval by Binh Thuan People's Committee in July 2023, and the 2,250 MW Son My 2 combined cycle gas power plant in Vietnam.

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 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, rates of return consistent with prior experience and the COVID-19 pandemic.

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' 2022 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, except where required by law.

Any Stockholder who desires a copy of the Company's 2022 Annual Report on Form 10-K filed March 1, 2023 with the SEC may obtain a copy (excluding the exhibits thereto) 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 Annual Report on Form 10-K may be obtained by visiting the Company's website at www.aes.com.

Website Disclosure

AES uses its website, including its quarterly updates, as channels of distribution of Company information. The information AES posts through these channels may be deemed material. Accordingly, investors should monitor our website, in addition to following AES' press releases, quarterly SEC filings and public conference calls and webcasts. In addition, you may automatically receive e-mail alerts and other information about AES when you enroll your e-mail address by visiting the "Subscribe to Alerts" page of AES' Investors website. The contents of AES' website, including its quarterly updates, are not, however, incorporated by reference into this release.

Investor Relations: Susan Harcourt 703-682-1204, susan.harcourt@aes.com
Media Contact: Stephanie Cathcart 571-294-6824, stephanie.cathcart@aes.com

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SOURCE AES CORP.

FAQ

What is the latest agreement announced by The AES Corporation (NYSE: AES)?

The latest agreement is with Se.ven Global Investments to sell its 51% equity stake in the Mong Duong 2 coal-fired plant in Vietnam.

What is the capacity of the Mong Duong 2 coal-fired plant?

The Mong Duong 2 coal-fired plant has a capacity of 1,242 MW and has been in operation since 2015.

What are AES' future developments in Vietnam?

AES continues to develop the 450 TBTU Son My LNG terminal with PetroVietnam Gas (PV Gas) and the 2,250 MW Son My 2 combined cycle gas power plant in Vietnam.

Who is Se.ven Global Investments?

Se.ven Global Investments is a family-owned company based in Czech Republic with expertise in developing and operating conventional power plants and mining assets around the world.