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

November 3, 2017

The AES Corporation (NYSE: AES) reported financial results for the three months ended September 30, 2017.

Third quarter 2017 Diluted Earnings Per Share from Continuing Operations (Diluted EPS) was $0.23, a decrease of $0.03 compared to the third quarter of 2016, reflecting a higher quarterly tax rate and the impact of recent hurricanes. These impacts were partially offset by unrealized foreign currency gains and lower impairment expense. Third quarter 2017 Adjusted Earnings Per Share (Adjusted EPS, a non-GAAP financial measure) decreased $0.08 to $0.24, reflecting a $0.05 impact from a higher quarterly adjusted effective tax rate of 35% versus 23% in the third quarter of 2016 and a $0.02 impact largely for the reserves booked for hurricane-related damages to the Company's businesses in Puerto Rico and the U.S. Virgin Islands. On a full year 2017 basis, the Company continues to expect a $0.03 to $0.05 impact of recent hurricanes in the Caribbean and a full year 2017 adjusted effective tax rate of 31% to 33%.

"We are upsizing our asset sales target in order to accelerate our strategy and now expect to realize $2 billion of proceeds from 2018 to 2020. Further, while we are on track to achieve $400 million in annual cost savings and revenue enhancements by 2020 is on track, we are aggressively reviewing our cost structure and see potential for additional improvement," said Andrés Gluski, AES President and Chief Executive Officer. "These initiatives will allow us to continue to simplify our business mix and redeploy capital to deliver an attractive total return to shareholders."

"Based on our year-to-date performance and outlook, we are reaffirming our 2017 guidance and expectations through 2020," said Tom O'Flynn, AES Executive Vice President and Chief Financial Officer. "As a result of our growing cash flow and continued Parent debt pay down, including $300 million this year, we expect to achieve investment grade credit status by 2020."

Consolidated Net Cash Provided by Operating Activities for the third quarter of 2017 was $735 million, a decrease of $84 million compared to the third quarter of 2016. This decrease was primarily driven by higher working capital requirements at the Company's Brazil, US, and Mexico, Central America and the Caribbean (MCAC) Strategic Business Units (SBU), which more than offset higher consolidated margins. Third quarter 2017 Consolidated Free Cash Flow (a non-GAAP financial measure) decreased $64 million to $601 million, compared to the third quarter of 2016, primarily due to the same drivers as Consolidated Net Cash Provided by Operating Activities.

Click here to read the full press release.

For more information:

AES Corporation

4300 Wilson Blvd
Arlington, Virginia
United States, 22203
Tel: 703-522-1315

Link http://electricenergyonline.com/detail_news.php?ID=664882
Most consulted news
Click here to try the new version of Electric Energy Online!