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 $3.5 billion asset sale proceeds target through
2027
- 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
$630 million, including sale and
hedge proceeds
Q3 2024 Financial Highlights
- GAAP Financial Metrics
- Diluted EPS of $0.72, compared to
$0.32 in Q3 2023
- Net Income of $210 million,
compared to $291 million in Q3
2023
- Net Income Attributable to The AES Corporation of $502 million, compared to $231 million in Q3 2023
- Non-GAAP Adjusted Financial Metrics
- Adjusted EPS1 of $0.71, compared to $0.60 in Q3 2023
- Adjusted EBITDA with Tax Attributes2,3 of
$1,168 million, compared to
$1,008 million in Q3 2023
- Adjusted EBITDA3 of $692
million, compared to $990
million in Q3 2023
Financial Position and Outlook
- Reaffirming expectation of achieving upper half of 2024
Adjusted EPS1 guidance range of $1.87 to $1.97
- Reaffirming annualized Adjusted EPS1 growth target
of 7% to 9% through 2025, off a base of 2020 and 7% to 9% through
2027, off a base of 2023 guidance
- Reaffirming 2024 guidance for Adjusted EBITDA2 of
$2,600 to $2,900 million; now expecting to be towards the
low end of the range due to extreme weather in Colombia and lower margins in the Energy
Infrastructure SBU
- Reaffirming annualized growth target2 of 5% to 7%
through 2027, off a base of 2023 guidance
- Reaffirming expectation of achieving upper half of 2024
Adjusted EBITDA with Tax Attributes2,3 range of
$3,550 to $3,950 million
ARLINGTON, Va., Oct. 31,
2024 /PRNewswire/ -- The AES Corporation (NYSE: AES)
today reported financial results for the quarter ended September 30, 2024.
"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
$3.5 billion asset sale proceeds
target through 2027. We remain on track to deliver on all of
our financial and strategic objectives in 2024 and beyond."
"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
Colombia and lower margins in our
Energy Infrastructure SBU."
Q3 2024 Financial Results
Third quarter 2024 Net Income was $210
million, a decrease of $81
million compared to third quarter 2023. This decrease
is the result of lower impairments and lower unrealized foreign
currency losses in 2024, and higher contributions from renewables
projects placed in service, partially offset by lower contributions
from the Energy Infrastructure Strategic Business Unit (SBU).
Third quarter 2024 Adjusted EBITDA4 (a non-GAAP
financial measure) was $692 million,
a decrease of $298 million compared
to third quarter 2023, driven by lower margins at the Energy
Infrastructure SBU primarily due to the end of commercial
operations at Warrior Run and prior year margin at the hedged
merchant Southland facilities that are contracted primarily for
capacity in 2024, and severe drought conditions in South America at the Renewables SBU.
This was partially offset by higher contributions at the Utilities
SBU and higher revenues from new projects at the Renewables
SBU.
Third quarter 2024 Adjusted EBITDA with Tax
Attributes4,5 was $1,168
million, an increase of $160 million compared to third
quarter 2023, primarily due to higher realized tax attributes
driven by more renewables projects placed in service, partially
offset by the drivers above.
Third quarter 2024 Diluted Earnings Per Share from Continuing
Operations (Diluted EPS) was $0.72,
an increase of $0.40 compared to
third quarter 2023, mainly driven by higher contributions from
renewables projects placed in service in 2024, lower long-lived
asset impairments in 2024, and prior year unrealized foreign
currency losses at the Energy Infrastructure SBU. This was
partially offset by lower earnings at the Energy Infrastructure SBU
due to the end of commercial operations at Warrior Run.
Third quarter 2024 Adjusted Earnings Per Share6
(Adjusted EPS, a non-GAAP financial measure) was $0.71, an increase of $0.11, compared to third quarter 2023, mainly
driven by a lower adjusted tax rate and higher contributions from
renewables projects placed in service in 2024, partially offset by
lower contributions from the Energy Infrastructure SBU.
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 $3.5
billion asset sale proceeds target through 2027.
- 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 $630 million,
including sale and hedge proceeds.
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 $3,550 to
$3,950 million, driven by new
renewables.
The Company is reaffirming its 2024 guidance for Adjusted
EBITDA6 of $2,600 to
$2,900 million, but now expects to be
towards the low end of the range, due to extreme weather in
Colombia and lower margins in the
Energy Infrastructure SBU. Results for the year will also be
driven by significant asset sales closed in 2023 and 2024,
partially offset by contributions from new renewables projects,
improved margins in Chile, and
rate base growth at US utilities.
The Company is reaffirming its expectation for annualized growth
in Adjusted EBITDA9 of 5% to 7% through 2027, from a
base of its 2023 guidance of $2,600
to $2,900 million.
The Company is reaffirming its expectation that 2024 Adjusted
EPS10 will come in the upper half of its guidance range
of $1.87 to $1.97. Growth in 2024 is expected to be
primarily driven by new renewables commissionings, rate base growth
at US utilities, and improved margins in Chile, but partially offset by asset sales and
prior year margins on LNG transactions.
The Company is reaffirming its annualized growth target for
Adjusted EPS10 of 7% to 9% through 2025, from a base
year of 2020. The Company is also reaffirming its annualized
growth target for Adjusted EPS9 of 7% to 9% through
2027, from a base of its 2023 guidance of $1.65 to $1.75.
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, 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.
|
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,
2024
|
|
December 31,
2023
|
|
(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 $32 and $15, respectively
|
1,868
|
|
1,420
|
|
Inventory
|
646
|
|
712
|
|
Prepaid
expenses
|
134
|
|
177
|
|
Other current assets,
net of allowance of $0 and $14, respectively
|
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 $8,505 and $8,602,
respectively
|
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 $426 and $498,
respectively
|
1,928
|
|
2,243
|
|
Deferred income
taxes
|
421
|
|
396
|
|
Other noncurrent
assets, net of allowance of $11 and $9, respectively
|
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 $416 and $1,080, respectively, related to variable
interest entities
|
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 $1,947 and $1,715, respectively, related to variable
interest entities
|
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 ($0.01
par value, 1,200,000,000 shares authorized; 859,709,987 issued and
711,027,043
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
September 30,
|
|
Nine Months
Ended
September 30,
|
|
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
September 30, 2024
|
|
Three Months
Ended
September 30, 2023
|
|
Nine Months
Ended
September 30, 2024
|
|
Nine Months
Ended
September 30, 2023
|
|
|
Net of NCI
(1)
|
|
Per Share
(Diluted)
Net of NCI
(1)
|
|
Net of NCI
(1)
|
|
Per Share
(Diluted)
Net of NCI
(1)
|
|
Net of NCI
(1)
|
|
Per Share
(Diluted)
Net of NCI
(1)
|
|
Net of NCI
(1)
|
|
Per Share
(Diluted)
Net of NCI
(1)
|
|
|
(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 $50 million, or $0.07 per share, and
unrealized gains on commodity derivatives at AES Clean Energy of
$17 million, or $0.02 per share, partially offset by unrealized
losses on foreign currency derivatives at Corporate of $17 million,
or $0.02 per share.
|
|
(3)
|
Amount primarily
relates to net unrealized derivative gains at the Energy
Infrastructure SBU of $109 million, or $0.15 per share, unrealized
gains on commodity derivatives at AES Clean Energy of $33 million,
or $0.05 per share, unrealized gains on cross currency swaps in
Brazil of $28 million, or $0.04 per share, and unrealized gains on
foreign currency derivatives at Corporate of $20 million, or $0.03
per share.
|
|
(4)
|
Amount primarily
relates to recognition of unrealized derivative losses due to the
termination of a PPA of $72 million, or $0.10 per share and
unrealized derivative losses at AES Clean Energy of $20 million, or
$0.03 per share, offset by unrealized derivative gains at the
Energy Infrastructure SBU of $108 million, or $0.15 per
share.
|
|
(5)
|
Amount primarily
relates to unrealized foreign currency losses mainly associated
with the devaluation of long-term receivables denominated in
Argentine pesos of $60 million, or $0.08 per share, unrealized
foreign currency losses at AES Andes of $21 million, or $0.03 per
share, and unrealized foreign currency losses on debt in Brazil of
$10 million, or $0.01 per share.
|
|
(6)
|
Amount primarily
relates to unrealized foreign currency losses mainly associated
with the devaluation of long-term receivables denominated in
Argentine pesos of $109 million, or $0.15 per share, and unrealized
foreign currency losses at AES Andes of $54 million, or $0.08 per
share.
|
|
(7)
|
Amount primarily
relates to day-one losses at commencement of sales-type leases at
AES Renewable Holdings of $63 million, or $0.09 per share, and the
loss on partial sale of our ownership interest in Amman East and
IPP4 in Jordan of $10 million, or $0.01 per share, partially offset
by a gain on dilution of ownership in Uplight due to its
acquisition of AutoGrid of $52 million, or $0.07 per
share.
|
|
(8)
|
Amount primarily
relates to impairment at Brazil of $29 million, or $0.04 per share,
and impairment at Mong Duong of $6 million, or $0.01 per
share.
|
|
(9)
|
Amount primarily
relates to asset impairments at TEG and TEP of $76 million and $58
million, respectively, or $0.19 per share.
|
|
(10)
|
Amount primarily
relates to impairment at Brazil of $131 million, or $0.18 per
share, and impairment at Mong Duong of $28 million, or $0.04 per
share.
|
|
(11)
|
Amount primarily
relates to asset impairments at the Norgener coal-fired plant in
Chile of $136 million, or $0.19 per share, at TEG and TEP of $76
million and $58 million, respectively, or $0.19 per share, the GAF
projects at AES Renewable Holdings of $18 million, or $0.03 per
share, and at Jordan of $16 million, or $0.02 per share.
|
|
(12)
|
Amount primarily
relates to losses incurred at AES Andes due to early retirement of
debt $29 million, or $0.04 per share, and costs incurred due to
troubled debt restructuring at Puerto Rico of $20 million, or $0.03
per share.
|
|
(13)
|
Amount primarily
relates to income tax benefits associated with the asset
impairments at TEG and TEP of $34 million, or $0.05 per share and
income tax benefits associated with unrealized foreign currency
losses at AES Andes of $6 million, or $0.01 per share.
|
|
(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 $59 million, or $0.08 per
share.
|
|
(15)
|
Amount primarily
relates to income tax benefits associated with the asset
impairments at the Norgener coal-fired plant in Chile of $35
million, or $0.05 per share and at TEG and TEP of $34 million, or
$0.05 per share, income tax benefits associated with the
recognition of unrealized losses due to the termination of a PPA of
$18 million, or $0.02 per share, and income tax benefits associated
with unrealized foreign currency losses at AES Andes of $14
million, or $0.02 per share.
|
|
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
30, 2024
|
June 30,
2024
|
March 31,
2024
|
December 31,
2023
|
|
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
30, 2024
|
June 30,
2024
|
March 31,
2024
|
December 31,
2023
|
|
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
30, 2024
|
June 30,
2024
|
March 31,
2024
|
December 31,
2023
|
|
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
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SOURCE The AES Corporation