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AES Corporation
AES Reports Second Quarter 2017 Financial Results; Reaffirms 2017 Guidance and Long-Term Expectations



Aug 9, 2017

Highlights

  • Diluted EPS of $0.08, a $0.24 increase compared to the second quarter of 2016
  • Adjusted EPS of $0.25, an $0.08 increase compared to the second quarter of 2016
  • Consolidated Net Cash Provided by Operating Activities of $251 million, a $472 million decrease compared to the second quarter of 2016
  • Consolidated Free Cash Flow of $106 million, a $448 million decrease compared to the second quarter of 2016, primarily due to the collection of receivables in Bulgaria and Brazil in 2016
  • Completed expansion of DPP power plant in the Dominican Republic, adding 122 MW of capacity
  • At the Alto Maipo project under construction in Chile, the Company is in discussions with non-recourse lenders and construction contractors to evaluate the path forward
  • Reaffirming 2017 guidance and average annual growth of 8% to 10% in Consolidated Free Cash Flow and Adjusted EPS through 2020

The AES Corporation (NYSE: AES) reported financial results for the three months ended June 30, 2017. Compared with last year, the Company benefited from higher margins, primarily driven by higher availability at certain generation businesses, and lower Parent interest expense.

Second quarter 2017 Diluted Earnings Per Share from Continuing Operations (Diluted EPS) was $0.08, an increase of $0.24 compared to the second quarter of 2016, reflecting lower impairment expense of $0.16, higher margins and lower Parent interest expense. The lower impairment expense was driven primarily by the $235 million impairment of DPL generation assets recorded in 2016. Adjusted Earnings Per Share (Adjusted EPS, a non-GAAP financial measure) for the second quarter of 2017 increased $0.08 to $0.25, primarily due to higher margins and lower Parent interest expense.

Consolidated Net Cash Provided by Operating Activities for the second quarter of 2017 was $251 million, a decrease of $472 million compared to the second quarter of 2016. The decrease was primarily driven by the receipt of overdue receivables at Maritza in Bulgaria in 2016, and the impact from the recovery of high purchased power costs at Eletropaulo in Brazil in 2016. Second quarter 2017 Consolidated Free Cash Flow (a non-GAAP financial measure) decreased $448 million to $106 million compared to the second quarter of 2016, primarily due to the same drivers as Consolidated Net Cash Provided by Operating Activities.

"In the last few months, we completed the acquisition of sPower, the largest independent solar developer and operator in U.S., brought on-line an additional 122 MW in the Dominican Republic by closing the cycle at DPP and closed on $2 billion in non-recourse financing for the 1.4 GW Southland CCGT and energy storage project in California," said Andrés Gluski, AES President and Chief Executive Officer. "These are concrete steps towards achieving our growth objectives, based on long-term, U.S. Dollar-denominated contracts, with decreased carbon intensity. Overall, we are making good progress on our 5 GW of projects under construction, with the exception of our 531 MW Alto Maipo hydroelectric project in Chile, where we are disappointed with the project's current status and continued cost overruns."

"Our second quarter results reflect our efforts to improve the efficiency of our portfolio through higher availability and our capital allocation decisions that resulted in lower Parent interest," said Tom O'Flynn, AES Executive Vice President and Chief Financial Officer. "Based on our performance year-to-date, we are reaffirming our 2017 guidance and expectations through 2020."

Click here to read the full press release.

For more information:

Organization:
AES Corporation

Address:
4300 Wilson Blvd
Arlington, Virginia
United States, 22203
www.aes.com
Tel: 703-522-1315


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