AES Reports Third Quarter Financial Results; Completes 1.2 GW of Construction and Adds 2.2 GW of Renewables PPAs and Data Center Load Growth at US Utilities
AES reported Q3 2024 financial results with GAAP Diluted EPS of $0.72, up from $0.32 in Q3 2023, and Adjusted EPS of $0.71, compared to $0.60 last year. The company completed 1.2 GW of construction and secured 2.2 GW of new contracts, including renewables PPAs and data center load growth. Net Income was $210 million, down from $291 million in Q3 2023. AES reaffirmed its 2024 guidance, expecting Adjusted EPS in the upper half of $1.87-$1.97 range and Adjusted EBITDA towards the low end of $2,600-$2,900 million due to extreme weather in Colombia and lower Energy Infrastructure margins.
AES ha riportato i risultati finanziari del terzo trimestre del 2024 con un EPS Diluito GAAP di $0.72, in aumento rispetto a $0.32 nel terzo trimestre del 2023, e un EPS Rettificato di $0.71, rispetto a $0.60 dell'anno scorso. L'azienda ha completato 1,2 GW di costruzione e ha assicurato 2,2 GW di nuovi contratti, inclusi PPA rinnovabili e crescita del carico dei data center. Il Reddito Netto è stato di $210 milioni, in calo rispetto a $291 milioni nel terzo trimestre del 2023. AES ha confermato le sue previsioni per il 2024, prevedendo un EPS Rettificato nella metà alta della fascia $1.87-$1.97 e un EBITDA Rettificato verso l'estremità bassa della fascia $2,600-$2,900 milioni a causa di condizioni meteorologiche estreme in Colombia e margini più bassi nell'Infrastruttura Energetica.
AES reportó los resultados financieros del tercer trimestre de 2024 con un EPS Dilutido GAAP de $0.72, en comparación con $0.32 en el tercer trimestre de 2023, y un EPS Ajustado de $0.71, frente a $0.60 del año pasado. La compañía completó 1.2 GW de construcción y consiguió 2.2 GW de nuevos contratos, incluyendo PPAs de energías renovables y el crecimiento de carga en centros de datos. El Ingreso Neto fue de $210 millones, disminuyendo desde $291 millones en el tercer trimestre de 2023. AES reafirmó su guía para 2024, esperando un EPS Ajustado en la mitad alta del rango de $1.87-$1.97 y un EBITDA Ajustado hacia el extremo bajo del rango de $2,600-$2,900 millones debido a condiciones climáticas extremas en Colombia y márgenes más bajos en Infraestructura Energética.
AES는 2024년 3분기 재무 결과를 보고했습니다. GAAP 희석 주당순이익(EPS)는 $0.72로, 2023년 3분기의 $0.32에서 증가했으며, 조정된 EPS는 $0.71로, 작년의 $0.60과 비교되었습니다. 회사는 1.2GW의 건설을 완료하고 2.2GW의 신규 계약을 확보했습니다. 여기에 재생 가능 PPAs와 데이터 센터의 수요 증가가 포함됩니다. 순이익은 $210백만으로, 2023년 3분기의 $291백만에서 감소했습니다. AES는 2024년 가이드를 재확인하며 조정된 EPS가 $1.87-$1.97 범위의 상단에 위치하고 조정된 EBITDA가 $2,600-$2,900백만의 하단으로 예상된다고 밝혔습니다. 이는 콜롬비아의 극한 기후와 에너지 인프라 마진의 감소 때문입니다.
AES a communiqué ses résultats financiers pour le troisième trimestre 2024 avec un EPS Dilué GAAP de $0.72, en hausse par rapport à $0.32 au troisième trimestre 2023, et un EPS Ajusté de $0.71, comparé à $0.60 l'année dernière. L'entreprise a complété 1,2 GW de construction et a sécurisé 2,2 GW de nouveaux contrats, y compris des PPAs pour les énergies renouvelables et la croissance de la charge dans les centres de données. Le Revenu Net était de $210 millions, en baisse par rapport à $291 millions au troisième trimestre 2023. AES a réaffirmé ses prévisions pour 2024, s'attendant à un EPS Ajusté dans la moitié supérieure de la fourchette de $1.87-$1.97 et un EBITDA Ajusté vers le bas de la fourchette de $2,600-$2,900 millions en raison de conditions météorologiques extrêmes en Colombie et de marges plus faibles dans l'infrastructure énergétique.
AES berichtete über die finanziellen Ergebnisse des dritten Quartals 2024 mit einem GAAP verwässerten EPS von $0.72, ein Anstieg von $0.32 im dritten Quartal 2023, und einem bereinigten EPS von $0.71, im Vergleich zu $0.60 im vergangenen Jahr. Das Unternehmen schloss 1,2 GW Bauprojekte ab und sicherte sich 2,2 GW neue Verträge, einschließlich erneuerbarer PPAs und Wachstum der Lasten in Rechenzentren. Das Nettoeinkommen betrug $210 Millionen, ein Rückgang von $291 Millionen im dritten Quartal 2023. AES bekräftigte seine Prognose für 2024 und erwartet ein bereinigtes EPS im oberen Bereich von $1.87-$1.97 sowie ein bereinigtes EBITDA im unteren Bereich von $2,600-$2,900 Millionen aufgrund extremer Wetterbedingungen in Kolumbien und niedrigerer Margen im Energiebereich.
- Secured 2.2 GW of new contracts including renewables PPAs and data center load
- Completed 1.2 GW of construction projects
- Achieved approximately 75% of $3.5 billion asset sale target through 2027
- Adjusted EPS increased 18.3% YoY to $0.71
- Adjusted EBITDA with Tax Attributes grew by $160M to $1,168 million
- Net Income decreased by $81M to $210 million YoY
- Adjusted EBITDA declined by $298M to $692 million YoY
- Lower margins in Energy Infrastructure SBU
- Severe drought conditions affecting South American operations
- Expecting 2024 Adjusted EBITDA towards low end of guidance due to weather impacts
Insights
AES delivered a mixed Q3 2024 performance with notable strategic progress but some operational challenges. The company reported
Key positives include signing 2.2 GW of new contracts, completing 1.2 GW of construction and achieving
While maintaining 2024 guidance ranges, management now expects core Adjusted EBITDA to land at the lower end due to weather impacts and lower margins. However, strong tax attribute realization keeps Adjusted EPS and Adjusted EBITDA with Tax Attributes tracking to the upper half of guidance.
The renewable energy portfolio expansion continues at a robust pace, with 12.7 GW in the PPA backlog including 4.0 GW under construction. The addition of 900 MW of data center load growth at AES Ohio represents significant progress in the company's utility modernization strategy.
The operational challenges in Colombia and lower margins in the Energy Infrastructure segment highlight the transition risks as AES moves away from traditional power generation. The end of operations at Warrior Run and reduced merchant margins at Southland facilities demonstrate the near-term impact of this strategic shift. However, the long-term growth trajectory remains supported by strong renewable development and utility rate base growth.
Reaffirms 2024 Guidance and Long-Term Growth Rates
Strategic Accomplishments
- Signed or awarded 2.2 GW of new contracts, including long-term renewables PPAs and data center load growth at US utilities
- 1.3 GW of renewables under long-term PPAs
- 900 MW of new data center load growth at AES Ohio
- Completed the construction of 1.2 GW; on track to add a total of 3.6 GW of new projects to operations in full year 2024
- Announced or closed nearly three-quarters of
asset sale proceeds target through 2027$3.5 billion - In September, announced a strategic partnership with CDPQ to support AES Ohio's robust growth plans; agreed to sell a
30% indirect interest for approximately$546 million - On October 31, 2024, closed the sale of
47.3% equity interest in AES Brasil for approximately , including sale and hedge proceeds$630 million
- In September, announced a strategic partnership with CDPQ to support AES Ohio's robust growth plans; agreed to sell a
Q3 2024 Financial Highlights
- GAAP Financial Metrics
- Diluted EPS of
, compared to$0.72 in Q3 2023$0.32 - Net Income of
, compared to$210 million in Q3 2023$291 million - Net Income Attributable to The AES Corporation of
, compared to$502 million in Q3 2023$231 million
- Diluted EPS of
- Non-GAAP Adjusted Financial Metrics
- Adjusted EPS1 of
, compared to$0.71 in Q3 2023$0.60 - Adjusted EBITDA with Tax Attributes2,3 of
, compared to$1,168 million in Q3 2023$1,008 million - Adjusted EBITDA3 of
, compared to$692 million in Q3 2023$990 million
- Adjusted EPS1 of
Financial Position and Outlook
- Reaffirming expectation of achieving upper half of 2024 Adjusted EPS1 guidance range of
to$1.87 $1.97 - Reaffirming annualized Adjusted EPS1 growth target of
7% to9% through 2025, off a base of 2020 and7% to9% through 2027, off a base of 2023 guidance
- Reaffirming annualized Adjusted EPS1 growth target of
- Reaffirming 2024 guidance for Adjusted EBITDA2 of
to$2,600 ; now expecting to be towards the low end of the range due to extreme weather in$2,900 million Colombia and lower margins in the Energy Infrastructure SBU- Reaffirming annualized growth target2 of
5% to7% through 2027, off a base of 2023 guidance - Reaffirming expectation of achieving upper half of 2024 Adjusted EBITDA with Tax Attributes2,3 range of
to$3,550 $3,950 million
- Reaffirming annualized growth target2 of
"Our third quarter financial results and strategic accomplishments were very much in line with our expectations. Since our last call, we have signed or been awarded 2.2 GW of long-term contracts for renewables or new data center load growth at our US utilities. At the same time, we completed the construction of 1.2 GW of new projects," said Andrés Gluski, AES President and Chief Executive Officer. "Finally, we have announced or closed transactions for roughly three-quarters of our
"With our year-to-date performance and our outlook for the remainder of the year, I am pleased to reaffirm our 2024 guidance and long-term growth rates through 2027 for all metrics," said Stephen Coughlin, AES Executive Vice President and Chief Financial Officer. "We expect our 2024 Adjusted EBITDA with Tax Attributes and our Adjusted EPS to be in the upper half of our ranges, as we have had great success in securing the tax value of our growth investments. 2024 Adjusted EBITDA is expected to be towards the low end of our guidance range, primarily due to extreme weather this year in
Q3 2024 Financial Results
Third quarter 2024 Net Income was
Third quarter 2024 Adjusted EBITDA4 (a non-GAAP financial measure) was
Third quarter 2024 Adjusted EBITDA with Tax Attributes4,5 was
Third quarter 2024 Diluted Earnings Per Share from Continuing Operations (Diluted EPS) was
Third quarter 2024 Adjusted Earnings Per Share6 (Adjusted EPS, a non-GAAP financial measure) was
Strategic Accomplishments
- The Company's PPA backlog, which consists of projects with signed contracts, but which are not yet operational, is 12.7 GW, including 4.0 GW under construction. Since the Company's second quarter 2024 earnings call in August 2024, the Company:
- Signed or was awarded 1.3 GW of long-term PPAs for new renewables, for a total of 3.5 GW in year-to-date 2024; and
- Completed the construction of 1.2 GW of solar, energy storage, wind and gas, and expects to add a total of 3.6 GW to its operating portfolio by year-end 2024.
- Since the Company's second quarter 2024 earnings call in August 2024, the Company signed agreements with data center customers for an additional 900 MW of new load growth at AES Ohio, for a total of 2.1 GW in year-to-date 2024.
- In 2023 and year-to-date 2024, the Company has announced or closed nearly three-quarters of its
asset sale proceeds target through 2027.$3.5 billion - In September 2024, the Company agreed to sell a
30% indirect interest in AES Ohio to CDPQ for approximately .$546 million - On October 31, 2024, the Company closed the sale of its
47.3% equity interest in AES Brasil for approximately , including sale and hedge proceeds.$630 million
- In September 2024, the Company agreed to sell a
Guidance and Expectations6,7
The Company is reaffirming its expectation that 2024 Adjusted EBITDA with Tax Attributes6,8 will come in the upper half of the range of
The Company is reaffirming its 2024 guidance for Adjusted EBITDA6 of
The Company is reaffirming its expectation for annualized growth in Adjusted EBITDA9 of
The Company is reaffirming its expectation that 2024 Adjusted EPS10 will come in the upper half of its guidance range of
The Company is reaffirming its annualized growth target for Adjusted EPS10 of
The Company's 2024 guidance is based on foreign currency and commodity forward curves as of September 30, 2024.
Non-GAAP Financial Measures
See Non-GAAP Measures for definitions of Adjusted EBITDA, Adjusted EBITDA with Tax Attributes, Tax Attributes, Adjusted Earnings Per Share, and Adjusted Pre-Tax Contribution, as well as reconciliations to the most comparable GAAP financial measures.
Attachments
Condensed Consolidated Statements of Operations, Segment Information, Condensed Consolidated Balance Sheets, Condensed Consolidated Statements of Cash Flows, Non-GAAP Financial Measures and Parent Financial Information.
Conference Call Information
AES will host a conference call on Friday, November 1, 2024 at 9:00 a.m. Eastern Time (ET). Interested parties may listen to the teleconference by dialing 1-833-470-1428 at least ten minutes before the start of the call. International callers should dial +1-404-975-4839. The Participant Access Code for this call is 132288. Internet access to the conference call and presentation materials will be available on the AES website at www.aes.com by selecting "Investors" and then "Presentations and Webcasts."
A webcast replay will be accessible at www.aes.com beginning shortly after the completion of the call.
1 | Adjusted EPS is a non-GAAP financial measure. See attached "Non-GAAP Measures" for definition of Adjusted EPS and a description of the adjustments to reconcile Adjusted EPS to Diluted EPS for the quarter ended September 30, 2024. The Company is not able to provide a corresponding GAAP equivalent or reconciliation for its Adjusted EPS guidance without unreasonable effort. | ||||||
2 | Adjusted EBITDA is a non-GAAP financial measure. See attached "Non-GAAP Measures" for definition of Adjusted EBITDA and a description of the adjustments to reconcile Adjusted EBITDA to Net Income (Loss) for the quarter ended September 30, 2024. The Company is not able to provide a corresponding GAAP equivalent or reconciliation for its Adjusted EBITDA guidance without unreasonable effort. | ||||||
3 | Pre-tax effect of Production Tax Credits, Investment Tax Credits, and depreciation tax deductions allocated to tax equity investors, as well as the tax benefit recorded from tax credits retained or transferred to third parties. | ||||||
4 | Adjusted EBITDA is a non-GAAP financial measure. See attached "Non-GAAP Measures" for definition of Adjusted EBITDA and a description of the adjustments to reconcile Adjusted EBITDA to Net Income for the quarter ended September 30, 2024. The Company is not able to provide a corresponding GAAP equivalent or reconciliation for its Adjusted EBITDA guidance without unreasonable effort. | ||||||
5 | Pre-tax effect of Production Tax Credits, Investment Tax Credits, and depreciation tax deductions allocated to tax equity investors, as well as the tax benefit recorded from tax credits retained or transferred to third parties. | ||||||
6 | Adjusted EBITDA is a non-GAAP financial measure. See attached "Non-GAAP Measures" for definition of Adjusted EBITDA and a description of the adjustments to reconcile Adjusted EBITDA to Net Income for the quarter ended September 30, 2024. The Company is not able to provide a corresponding GAAP equivalent or reconciliation for its Adjusted EBITDA guidance without unreasonable effort. | ||||||
7 | Adjusted EPS is a non-GAAP financial measure. See attached "Non-GAAP Measures" for definition of Adjusted EPS and a description of the adjustments to reconcile Adjusted EPS to Diluted EPS for the quarter ended September 30, 2024. The Company is not able to provide a corresponding GAAP equivalent or reconciliation for its Adjusted EPS guidance without unreasonable effort. | ||||||
8 | Pre-tax effect of Production Tax Credits, Investment Tax Credits, and depreciation tax deductions allocated to tax equity investors, as well as the tax benefit recorded from tax credits retained or transferred to third parties. | ||||||
9 | Adjusted EBITDA is a non-GAAP financial measure. See attached "Non-GAAP Measures" for definition of Adjusted EBITDA and a description of the adjustments to reconcile Adjusted EBITDA to Net Income for the quarter ended September 30, 2024. The Company is not able to provide a corresponding GAAP equivalent or reconciliation for its Adjusted EBITDA guidance without unreasonable effort. | ||||||
10 | Adjusted EPS is a non-GAAP financial measure. See attached "Non-GAAP Measures" for definition of Adjusted EPS and a description of the adjustments to reconcile Adjusted EPS to Diluted EPS for the quarter ended September 30, 2024. The Company is not able to provide a corresponding GAAP equivalent or reconciliation for its Adjusted EPS guidance without unreasonable effort. |
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, 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' 2023 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 2023 Annual Report on Form 10-K filed February 26, 2024 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,
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.
THE AES CORPORATION Condensed Consolidated Statements of Operations (Unaudited) | |||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
(in millions, except per share amounts) | |||||||
Revenue: | |||||||
Non-Regulated | $ 2,352 | $ 2,571 | $ 6,654 | $ 7,051 | |||
Regulated | 937 | 863 | 2,662 | 2,649 | |||
Total revenue | 3,289 | 3,434 | 9,316 | 9,700 | |||
Cost of Sales: | |||||||
Non-Regulated | (1,794) | (1,813) | (5,198) | (5,392) | |||
Regulated | (773) | (703) | (2,224) | (2,298) | |||
Total cost of sales | (2,567) | (2,516) | (7,422) | (7,690) | |||
Operating margin | 722 | 918 | 1,894 | 2,010 | |||
General and administrative expenses | (57) | (64) | (198) | (191) | |||
Interest expense | (379) | (326) | (1,125) | (966) | |||
Interest income | 119 | 144 | 312 | 398 | |||
Loss on extinguishment of debt | (1) | — | (11) | (1) | |||
Other expense | (31) | (12) | (153) | (38) | |||
Other income | 64 | 12 | 120 | 36 | |||
Gain (loss) on disposal and sale of business interests | (1) | — | 43 | (4) | |||
Asset impairment expense | (79) | (158) | (355) | (352) | |||
Foreign currency transaction gains (losses) | (28) | (100) | 2 | (209) | |||
INCOME FROM CONTINUING OPERATIONS BEFORE TAXES AND EQUITY IN EARNINGS OF AFFILIATES | 329 | 414 | 529 | 683 | |||
Income tax expense | (103) | (109) | (52) | (179) | |||
Net equity in losses of affiliates | (9) | (14) | (21) | (43) | |||
INCOME FROM CONTINUING OPERATIONS | 217 | 291 | 456 | 461 | |||
Loss from disposal of discontinued businesses | (7) | — | (7) | — | |||
NET INCOME | 210 | 291 | 449 | 461 | |||
Less: Net loss (income) attributable to noncontrolling interests and redeemable stock of subsidiaries | 292 | (60) | 670 | (118) | |||
NET INCOME ATTRIBUTABLE TO THE AES CORPORATION | $ 502 | $ 231 | $ 1,119 | $ 343 | |||
AMOUNTS ATTRIBUTABLE TO THE AES CORPORATION COMMON STOCKHOLDERS: | |||||||
Income from continuing operations, net of tax | $ 509 | $ 231 | $ 1,126 | $ 343 | |||
Loss from discontinued operations, net of tax | (7) | — | (7) | — | |||
NET INCOME ATTRIBUTABLE TO THE AES CORPORATION | $ 502 | $ 231 | $ 1,119 | $ 343 | |||
BASIC EARNINGS PER SHARE: | |||||||
Income from continuing operations attributable to The AES Corporation common stockholders, net of tax | $ 0.72 | $ 0.34 | $ 1.60 | $ 0.51 | |||
Loss from discontinued operations attributable to The AES Corporation common stockholders, net of tax | (0.01) | — | (0.01) | — | |||
NET INCOME ATTRIBUTABLE TO THE AES CORPORATION COMMON STOCKHOLDERS | $ 0.71 | $ 0.34 | $ 1.59 | $ 0.51 | |||
DILUTED EARNINGS PER SHARE: | |||||||
Income from continuing operations attributable to The AES Corporation common stockholders, net of tax | $ 0.72 | $ 0.32 | $ 1.58 | $ 0.48 | |||
Loss from discontinued operations attributable to The AES Corporation common stockholders, net of tax | (0.01) | — | (0.01) | — | |||
NET INCOME ATTRIBUTABLE TO THE AES CORPORATION COMMON STOCKHOLDERS | $ 0.71 | $ 0.32 | $ 1.57 | $ 0.48 | |||
DILUTED SHARES OUTSTANDING | 713 | 712 | 713 | 712 |
THE AES CORPORATION | |||||||
Strategic Business Unit (SBU) Information | |||||||
(Unaudited) | |||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
(in millions) | 2024 | 2023 | 2024 | 2023 | |||
REVENUE | |||||||
Renewables SBU | $ 726 | $ 708 | $ 1,941 | $ 1,744 | |||
Utilities SBU | 961 | 880 | 2,730 | 2,703 | |||
Energy Infrastructure SBU | 1,623 | 1,861 | 4,706 | 5,239 | |||
New Energy Technologies SBU | 1 | — | 1 | 75 | |||
Corporate and Other | 33 | 29 | 106 | 96 | |||
Eliminations | (55) | (44) | (168) | (157) | |||
Total Revenue | $ 3,289 | $ 3,434 | $ 9,316 | $ 9,700 |
THE AES CORPORATION Condensed Consolidated Balance Sheets (Unaudited) | |||
September 30, | December 31, | ||
(in millions, except share and per share data) | |||
ASSETS | |||
CURRENT ASSETS | |||
Cash and cash equivalents | $ 1,919 | $ 1,426 | |
Restricted cash | 563 | 370 | |
Short-term investments | 62 | 395 | |
Accounts receivable, net of allowance of | 1,868 | 1,420 | |
Inventory | 646 | 712 | |
Prepaid expenses | 134 | 177 | |
Other current assets, net of allowance of | 1,460 | 1,387 | |
Current held-for-sale assets | 3,874 | 762 | |
Total current assets | 10,526 | 6,649 | |
NONCURRENT ASSETS | |||
Property, plant and equipment, net of accumulated depreciation of | 32,354 | 29,958 | |
Investments in and advances to affiliates | 1,162 | 941 | |
Debt service reserves and other deposits | 77 | 194 | |
Goodwill | 348 | 348 | |
Other intangible assets, net of accumulated amortization of | 1,928 | 2,243 | |
Deferred income taxes | 421 | 396 | |
Other noncurrent assets, net of allowance of | 2,593 | 3,259 | |
Noncurrent held-for-sale assets | 670 | 811 | |
Total other assets | 7,199 | 8,192 | |
TOTAL ASSETS | $ 50,079 | $ 44,799 | |
LIABILITIES AND EQUITY | |||
CURRENT LIABILITIES | |||
Accounts payable | $ 1,965 | $ 2,199 | |
Accrued interest | 328 | 315 | |
Accrued non-income taxes | 257 | 278 | |
Supplier financing arrangements | 698 | 974 | |
Accrued and other liabilities | 1,182 | 1,334 | |
Recourse debt | 1,709 | 200 | |
Non-recourse debt, including | 3,237 | 3,932 | |
Current held-for-sale liabilities | 2,999 | 499 | |
Total current liabilities | 12,375 | 9,731 | |
NONCURRENT LIABILITIES | |||
Recourse debt | 4,840 | 4,264 | |
Non-recourse debt, including | 19,666 | 18,482 | |
Deferred income taxes | 1,696 | 1,245 | |
Other noncurrent liabilities | 2,501 | 3,114 | |
Noncurrent held-for-sale liabilities | 457 | 514 | |
Total noncurrent liabilities | 29,160 | 27,619 | |
Commitments and Contingencies | |||
Redeemable stock of subsidiaries | 905 | 1,464 | |
EQUITY | |||
THE AES CORPORATION STOCKHOLDERS' EQUITY | |||
Preferred stock (without par value, 50,000,000 shares authorized; 1,043,050 issued and outstanding at December 31, 2023) | — | 838 | |
Common stock ( outstanding at September 30, 2024 and 819,051,591 issued and 669,693,234 outstanding at December 31, 2023) | 9 | 8 | |
Additional paid-in capital | 6,949 | 6,355 | |
Accumulated deficit | (267) | (1,386) | |
Accumulated other comprehensive loss | (1,595) | (1,514) | |
Treasury stock, at cost (148,682,944 and 149,358,357 shares at September 30, 2024 and December 31, 2023, respectively) | (1,806) | (1,813) | |
Total AES Corporation stockholders' equity | 3,290 | 2,488 | |
NONCONTROLLING INTERESTS | 4,349 | 3,497 | |
Total equity | 7,639 | 5,985 | |
TOTAL LIABILITIES AND EQUITY | $ 50,079 | $ 44,799 |
THE AES CORPORATION Condensed Consolidated Statements of Cash Flows (Unaudited) | |||||||
Three Months Ended | Nine Months Ended | ||||||
2024 | 2023 | 2024 | 2023 | ||||
(in millions) | (in millions) | ||||||
OPERATING ACTIVITIES: | |||||||
Net income | $ 210 | $ 291 | $ 449 | $ 461 | |||
Adjustments to net income: | |||||||
Depreciation and amortization | 306 | 286 | 926 | 836 | |||
Emissions allowance expense | 73 | 72 | 144 | 211 | |||
Loss (gain) on realized/unrealized derivatives | (57) | 41 | (194) | 79 | |||
Loss (gain) on disposal and sale of business interests | 1 | — | (43) | 4 | |||
Impairment expense | 79 | 159 | 355 | 358 | |||
Loss on realized/unrealized foreign currency | 14 | 113 | 92 | 184 | |||
Deferred income tax expense (benefit), net of tax credit transfers | 242 | 17 | 423 | (102) | |||
Other | 108 | 27 | 81 | 118 | |||
Changes in operating assets and liabilities: | |||||||
(Increase) decrease in accounts receivable | (337) | (44) | (576) | 16 | |||
(Increase) decrease in inventory | 27 | (23) | 58 | 253 | |||
(Increase) decrease in prepaid expenses and other current assets | (13) | 5 | 120 | 76 | |||
(Increase) decrease in other assets | 130 | (78) | 177 | (4) | |||
Increase (decrease) in accounts payable and other current liabilities | 194 | 118 | 34 | (187) | |||
Increase (decrease) in income tax payables, net and other tax payables | (50) | 18 | (514) | (67) | |||
Increase (decrease) in other liabilities | 58 | 120 | 132 | 73 | |||
Net cash provided by operating activities | 985 | 1,122 | 1,664 | 2,309 | |||
INVESTING ACTIVITIES: | |||||||
Capital expenditures | (1,832) | (1,899) | (5,665) | (5,295) | |||
Acquisitions of business interests, net of cash and restricted cash acquired | (6) | (21) | (79) | (311) | |||
Proceeds from the sale of business interests, net of cash and restricted cash sold | — | — | 11 | 98 | |||
Sale of short-term investments | 197 | 296 | 731 | 1,002 | |||
Purchase of short-term investments | (121) | (144) | (725) | (764) | |||
Contributions and loans to equity affiliates | (21) | (35) | (71) | (147) | |||
Purchase of emissions allowances | (66) | (46) | (157) | (161) | |||
Other investing | (16) | (74) | (134) | (95) | |||
Net cash used in investing activities | (1,865) | (1,923) | (6,089) | (5,673) | |||
FINANCING ACTIVITIES: | |||||||
Borrowings under the revolving credit facilities | 1,649 | 1,418 | 5,652 | 3,939 | |||
Repayments under the revolving credit facilities | (1,469) | (599) | (4,051) | (2,730) | |||
Commercial paper borrowings (repayments), net | (79) | 87 | 611 | 604 | |||
Issuance of recourse debt | — | — | 950 | 1,400 | |||
Issuance of non-recourse debt | 1,401 | 327 | 5,199 | 1,784 | |||
Repayments of non-recourse debt | (585) | (318) | (3,311) | (1,262) | |||
Payments for financing fees | (13) | (9) | (88) | (76) | |||
Purchases under supplier financing arrangements | 503 | 489 | 1,211 | 1,307 | |||
Repayments of obligations under supplier financing arrangements | (357) | (237) | (1,412) | (1,099) | |||
Distributions to noncontrolling interests | (37) | (26) | (165) | (173) | |||
Contributions from noncontrolling interests | 40 | 45 | 137 | 63 | |||
Sales to noncontrolling interests | 546 | 182 | 869 | 371 | |||
Dividends paid on AES common stock | (123) | (111) | (361) | (333) | |||
Payments for financed capital expenditures | (10) | (1) | (29) | (8) | |||
Other financing | (38) | (36) | (25) | (47) | |||
Net cash provided by financing activities | 1,428 | 1,211 | 5,187 | 3,740 | |||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (4) | (71) | (47) | (108) | |||
Increase in cash, cash equivalents and restricted cash of held-for-sale businesses | (133) | (14) | (146) | (20) | |||
Total increase in cash, cash equivalents and restricted cash | 411 | 325 | 569 | 248 | |||
Cash, cash equivalents and restricted cash, beginning | 2,148 | 2,010 | 1,990 | 2,087 | |||
Cash, cash equivalents and restricted cash, ending | $ 2,559 | $ 2,335 | $ 2,559 | $ 2,335 | |||
SUPPLEMENTAL DISCLOSURES: | |||||||
Cash payments for interest, net of amounts capitalized | $ 338 | $ 223 | $ 1,103 | $ 735 | |||
Cash payments for income taxes, net of refunds | 61 | 67 | 270 | 267 | |||
SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES: | |||||||
Conversion of Corporate Units to shares of common stock | $ — | $ — | $ 838 | $ — | |||
Liabilities derecognized due to sale of Warrior Run receivables | — | $ — | 273 | — | |||
Noncash recognition of new operating and financing leases | 60 | $ 105 | 240 | 187 | |||
Noncash contributions from noncontrolling interests | 188 | $ 30 | 213 | 60 | |||
Initial recognition of contingent consideration for acquisitions | — | (3) | 14 | 215 |
THE AES CORPORATION
NON-GAAP FINANCIAL MEASURES
(Unaudited)
RECONCILIATION OF ADJUSTED EBITDA, ADJUSTED PTC AND ADJUSTED EPS
We define EBITDA as earnings before interest income and expense, taxes, depreciation, and amortization. We define Adjusted EBITDA as EBITDA adjusted for the impact of NCI and interest, taxes, depreciation, and amortization of our equity affiliates, adding back interest income recognized under service concession arrangements, and excluding gains or losses of both consolidated entities and entities accounted for under the equity method due to (a) unrealized gains or losses pertaining to derivative transactions, equity securities, and financial assets and liabilities measured using the fair value option; (b) unrealized foreign currency gains or losses; (c) gains, losses, benefits and costs associated with dispositions and acquisitions of business interests, including early plant closures, and gains and losses recognized at commencement of sales-type leases; (d) losses due to impairments; and (e) gains, losses, and costs due to the early retirement of debt or troubled debt restructuring. We define Adjusted EBITDA with Tax Attributes as Adjusted EBITDA, adding back the pre-tax effect of Production Tax Credits ("PTCs"), Investment Tax Credits ("ITCs"), and depreciation tax deductions allocated to tax equity investors, as well as the tax benefit recorded from tax credits retained or transferred to third parties.
The GAAP measure most comparable to EBITDA, Adjusted EBITDA, and Adjusted EBITDA with Tax Attributes is net income. We believe that EBITDA, Adjusted EBITDA, and Adjusted EBITDA with Tax Attributes better reflect the underlying business performance of the Company. Adjusted EBITDA is the most relevant measure considered in the Company's internal evaluation of the financial performance of its segments. Factors in this determination include the variability due to unrealized gains or losses pertaining to derivative transactions, equity securities, or financial assets and liabilities remeasurement, unrealized foreign currency gains or losses, losses due to impairments, strategic decisions to dispose of or acquire business interests or retire debt, and the variability of allocations of earnings to tax equity investors, which affect results in a given period or periods. In addition, each of these metrics represent the business performance of the Company before the application of statutory income tax rates and tax adjustments, including the effects of tax planning, corresponding to the various jurisdictions in which the Company operates. EBITDA, Adjusted EBITDA, and Adjusted EBITDA with Tax Attributes should not be construed as alternatives to net income, which is determined in accordance with GAAP.
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
Reconciliation of Adjusted EBITDA (in millions) | 2024 | 2023 | 2024 | 2023 | |||
Net income | $ 210 | $ 291 | $ 449 | $ 461 | |||
Income tax expense (benefit) | 103 | 109 | 52 | 179 | |||
Interest expense | 379 | 326 | 1,125 | 966 | |||
Interest income | (119) | (144) | (312) | (398) | |||
Depreciation and amortization | 306 | 286 | 926 | 836 | |||
EBITDA | $ 879 | $ 868 | $ 2,240 | $ 2,044 | |||
Less: Income from discontinued operations | 7 | — | 7 | — | |||
Less: Adjustment for noncontrolling interests and redeemable stock of subsidiaries (1) | (229) | (183) | (471) | (508) | |||
Less: Income tax expense (benefit), interest expense (income) and depreciation and amortization from equity affiliates | 30 | 27 | 91 | 93 | |||
Interest income recognized under service concession arrangements | 16 | 18 | 49 | 54 | |||
Unrealized derivatives, equity securities, and financial assets and liabilities losses (gains) | (47) | 10 | (185) | 3 | |||
Unrealized foreign currency losses | 7 | 97 | 10 | 161 | |||
Disposition/acquisition losses (gains) | (11) | 8 | 8 | 21 | |||
Impairment losses | 39 | 145 | 179 | 318 | |||
Loss on extinguishment of debt and troubled debt restructuring | 1 | — | 51 | 1 | |||
Adjusted EBITDA | $ 692 | $ 990 | $ 1,979 | $ 2,187 | |||
Tax attributes | 476 | 18 | 895 | 69 | |||
Adjusted EBITDA with Tax Attributes (2) | $ 1,168 | $ 1,008 | $ 2,874 | $ 2,256 |
(1) | The allocation of earnings and losses to tax equity investors from both consolidated entities and equity affiliates is removed from Adjusted EBITDA. | ||||||
(2) | Adjusted EBITDA with Tax Attributes includes the impact of the share of the ITCs, PTCs, and depreciation deductions allocated to tax equity investors under the HLBV accounting method and recognized as Net loss (income) attributable to noncontrolling interests and redeemable stock of subsidiaries on the Condensed Consolidated Statements of Operations. It also includes the tax benefit recorded from tax credits retained or transferred to third parties. The tax attributes are related to the Renewables and Utilities SBUs. |
THE AES CORPORATION
NON-GAAP FINANCIAL MEASURES
(Unaudited)
RECONCILIATION OF ADJUSTED EBITDA, ADJUSTED PTC AND ADJUSTED EPS
We define Adjusted PTC as pre-tax income from continuing operations attributable to The AES Corporation excluding gains or losses of the consolidated entity due to (a) unrealized gains or losses pertaining to derivative transactions, equity securities, and financial assets and liabilities measured using the fair value option; (b) unrealized foreign currency gains or losses; (c) gains, losses, benefits, and costs associated with dispositions and acquisitions of business interests, including early plant closures, and gains and losses recognized at commencement of sales-type leases; (d) losses due to impairments; and (e) gains, losses, and costs due to the early retirement of debt or troubled debt restructuring. Adjusted PTC also includes net equity in earnings of affiliates on an after-tax basis adjusted for the same gains or losses excluded from consolidated entities.
We define Adjusted EPS as diluted earnings per share from continuing operations excluding gains or losses of both consolidated entities and entities accounted for under the equity method due to (a) unrealized gains or losses pertaining to derivative transactions, equity securities, and financial assets and liabilities measured using the fair value option; (b) unrealized foreign currency gains or losses; (c) gains, losses, benefits and costs associated with dispositions and acquisitions of business interests, including early plant closures, and the tax impact from the repatriation of sales proceeds, and gains and losses recognized at commencement of sales-type leases; (d) losses due to impairments; and (e) gains, losses, and costs due to the early retirement of debt or troubled debt restructuring.
The GAAP measure most comparable to Adjusted PTC is income from continuing operations attributable to AES. The GAAP measure most comparable to Adjusted EPS is diluted earnings per share from continuing operations. We believe that Adjusted PTC and Adjusted EPS better reflect the underlying business performance of the Company and are considered in the Company's internal evaluation of financial performance. Factors in this determination include the variability due to unrealized gains or losses pertaining to derivative transactions, equity securities, or financial assets and liabilities remeasurement, unrealized foreign currency gains or losses, losses due to impairments, and strategic decisions to dispose of or acquire business interests or retire debt, which affect results in a given period or periods. In addition, for Adjusted PTC, earnings before tax represents the business performance of the Company before the application of statutory income tax rates and tax adjustments, including the effects of tax planning, corresponding to the various jurisdictions in which the Company operates. Adjusted PTC and Adjusted EPS should not be construed as alternatives to income from continuing operations attributable to AES and diluted earnings per share from continuing operations, which are determined in accordance with GAAP.
Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | |||||||||||||
Net of NCI | Per Share | Net of NCI | Per Share | Net of NCI | Per Share | Net of NCI | Per Share | |||||||||
(in millions, except per share amounts) | ||||||||||||||||
Income from continuing operations, net of tax, attributable to AES and Diluted EPS | $ 509 | $ 0.72 | $ 231 | $ 0.32 | $ 1,126 | $ 1.58 | $ 343 | $ 0.48 | ||||||||
Add: Income tax expense (benefit) from continuing operations attributable to AES | 82 | 101 | (4) | 136 | ||||||||||||
Pre-tax contribution | $ 591 | $ 332 | $ 1,122 | $ 479 | ||||||||||||
Adjustments | ||||||||||||||||
Unrealized derivatives, equity securities, and financial assets and liabilities losses (gains) | $ (47) | $ (0.06) | (2) | $ 9 | $ 0.01 | $ (185) | $ (0.26) | (3) | $ 3 | $ — | (4) | |||||
Unrealized foreign currency losses | 7 | 0.01 | 96 | 0.14 | (5) | 10 | 0.02 | 160 | 0.22 | (6) | ||||||
Disposition/acquisition losses (gains) | (11) | (0.02) | 8 | 0.01 | 8 | 0.01 | (7) | 21 | 0.03 | |||||||
Impairment losses | 39 | 0.05 | (8) | 145 | 0.21 | (9) | 179 | 0.25 | (10) | 318 | 0.45 | (11) | ||||
Loss on extinguishment of debt and troubled debt restructuring | 3 | — | 3 | — | 57 | 0.08 | (12) | 7 | 0.01 | |||||||
Less: Net income tax expense (benefit) | 0.01 | (0.09) | (13) | (0.08) | (14) | (0.16) | (15) | |||||||||
Adjusted PTC and Adjusted EPS | $ 582 | $ 0.71 | $ 593 | $ 0.60 | $ 1,191 | $ 1.60 | $ 988 | $ 1.03 |
(1) | NCI is defined as Noncontrolling Interests. | ||||||
(2) | Amount primarily relates to net unrealized derivative gains at the Energy Infrastructure SBU of | ||||||
(3) | Amount primarily relates to net unrealized derivative gains at the Energy Infrastructure SBU of | ||||||
(4) | Amount primarily relates to recognition of unrealized derivative losses due to the termination of a PPA of | ||||||
(5) | Amount primarily relates to unrealized foreign currency losses mainly associated with the devaluation of long-term receivables denominated in Argentine pesos of | ||||||
(6) | Amount primarily relates to unrealized foreign currency losses mainly associated with the devaluation of long-term receivables denominated in Argentine pesos of | ||||||
(7) | Amount primarily relates to day-one losses at commencement of sales-type leases at AES Renewable Holdings of | ||||||
(8) | Amount primarily relates to impairment at | ||||||
(9) | Amount primarily relates to asset impairments at TEG and TEP of | ||||||
(10) | Amount primarily relates to impairment at | ||||||
(11) | Amount primarily relates to asset impairments at the Norgener coal-fired plant in | ||||||
(12) | Amount primarily relates to losses incurred at AES Andes due to early retirement of debt | ||||||
(13) | Amount primarily relates to income tax benefits associated with the asset impairments at TEG and TEP of | ||||||
(14) | Amount primarily relates to income tax benefits associated with the tax over book investment basis differences related to the AES Brasil held-for-sale classification of | ||||||
(15) | Amount primarily relates to income tax benefits associated with the asset impairments at the Norgener coal-fired plant in |
The AES Corporation | ||||
Parent Financial Information | ||||
Parent only data: last four quarters | ||||
(in millions) | 4 Quarters Ended | |||
Total subsidiary distributions & returns of capital to Parent | September | June 30, 2024 | March 31, | December 31, |
Actual | Actual | Actual | Actual | |
Subsidiary distributions1 to Parent & QHCs | $ 1,424 | $ 1,531 | $ 1,438 | $ 1,408 |
Returns of capital distributions to Parent & QHCs | 80 | 140 | 139 | 194 |
Total subsidiary distributions & returns of capital to Parent | $ 1,504 | $ 1,671 | $ 1,577 | $ 1,602 |
Parent only data: quarterly | ||||
(in millions) | Quarter Ended | |||
Total subsidiary distributions & returns of capital to Parent | September | June 30, 2024 | March 31, | December 31, |
Actual | Actual | Actual | Actual | |
Subsidiary distributions1 to Parent & QHCs | $ 204 | $ 298 | $ 386 | $ 536 |
Returns of capital distributions to Parent & QHCs | — | 1 | 1 | 78 |
Total subsidiary distributions & returns of capital to Parent | $ 204 | $ 299 | $ 387 | $ 614 |
(in millions) | Balance at | |||
September | June 30, 2024 | March 31, | December 31, | |
Parent Company Liquidity2 | Actual | Actual | Actual | Actual |
Cash at Parent & Cash at QHCs3 | $ 6 | $ 53 | $ 90 | $ 33 |
Availability under credit facilities | 335 | 736 | 642 | 1,376 |
Ending liquidity | $ 341 | $ 789 | $ 732 | $ 1,409 |
(1) | Subsidiary distributions received by Qualified Holding Companies ("QHCs") excluded from Schedule 1. Subsidiary Distributions should not be construed as an alternative to Consolidated Net Cash Provided by Operating Activities, which is determined in accordance with US GAAP. Subsidiary Distributions are important to the Parent Company because the Parent Company is a holding company that does not derive any significant direct revenues from its own activities but instead relies on its subsidiaries' business activities and the resultant distributions to fund the debt service, investment and other cash needs of the holding company. The reconciliation of the difference between the Subsidiary Distributions and Consolidated Net Cash Provided by Operating Activities consists of cash generated from operating activities that is retained at the subsidiaries for a variety of reasons which are both discretionary and non-discretionary in nature. These factors include, but are not limited to, retention of cash to fund capital expenditures at the subsidiary, cash retention associated with non-recourse debt covenant restrictions and related debt service requirements at the subsidiaries, retention of cash related to sufficiency of local GAAP statutory retained earnings at the subsidiaries, retention of cash for working capital needs at the subsidiaries, and other similar timing differences between when the cash is generated at the subsidiaries and when it reaches the Parent Company and related holding companies. | ||||||
(2) | Parent Company Liquidity is defined as cash available to the Parent Company, including cash at qualified holding companies (QHCs), plus available borrowings under our existing credit facility. AES believes that unconsolidated Parent Company liquidity is important to the liquidity position of AES as a Parent Company because of the non-recourse nature of most of AES' indebtedness. | ||||||
(3) | The cash held at QHCs represents cash sent to subsidiaries of the company domiciled outside of the US. Such subsidiaries have no contractual restrictions on their ability to send cash to AES, the Parent Company. Cash at those subsidiaries was used for investment and related activities outside of the US. These investments included equity investments and loans to other foreign subsidiaries as well as development and general costs and expenses incurred outside the US. Since the cash held by these QHCs is available to the Parent, AES uses the combined measure of subsidiary distributions to Parent and QHCs as a useful measure of cash available to the Parent to meet its international liquidity needs. |
Investor Contact: Susan Harcourt 703-682-1204, susan.harcourt@aes.com
Media Contact: Amy Ackerman 703-682-6399, amy.ackerman@aes.com
View original content to download multimedia:https://www.prnewswire.com/news-releases/aes-reports-third-quarter-financial-results-completes-1-2-gw-of-construction-and-adds-2-2-gw-of-renewables-ppas-and-data-center-load-growth-at-us-utilities-302293427.html
SOURCE The AES Corporation
FAQ
What was AES's Q3 2024 earnings per share?
How much new renewable capacity did AES secure in Q3 2024?
What is AES's 2024 earnings guidance?