| Work Detail |
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 EPS of $0.71, compared to $0.60 in Q3 2023 Adjusted EBITDA with Tax Attributes of $1,168 million, compared to $1,008 million in Q3 2023 Adjusted EBITDA of $692 million, compared to $990 million in Q3 2023 Financial Position and Outlook Reaffirming expectation of achieving upper half of 2024 Adjusted EPS guidance range of $1.87 to $1.97 Reaffirming annualized Adjusted EPS 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 EBITDA 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 target of 5% to 7% through 2027, off a base of 2023 guidance Reaffirming expectation of achieving upper half of 2024 Adjusted EBITDA with Tax Attributes range of $3,550 to $3,950 million The AES Corporation has recently reported its 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 EBITDA (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 Attributeswas $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 Share (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 Expectations The Company is reaffirming its expectation that 2024 Adjusted EBITDA with Tax Attributes 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 EBITDA 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 EBITDA 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 EPS 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 commissioning, 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 EPS of 7% to 9% through 2025, from the base year 2020. The Company is also reaffirming its annualized growth target for Adjusted EPS of 7% to 9% through 2027, from the 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. |
