AES Reaffirms 2022 Adjusted EPS Guidance; Remains on Track to Deliver on Renewables Growth

The AES Corporation reported financial results for the quarter ended June 30, 2022.

“AES’ business model continues to demonstrate its resilience in today’s volatile environment and we are on track to achieve our 2022 guidance,” said Andrés Gluski, AES President and Chief Executive Officer. “We see strong demand for renewables and have already signed or been awarded 1.6 GW of new long-term contracts so far this year, and expect to achieve a total of 4.5 to 5.5 GW in 2022. Furthermore, we do not expect any material delays on 5.9 GW of backlog projects in the US as a result of supply chain issues. With expected growth of more than 75% in our installed renewable capacity over the next four years, AES is well on its way to becoming a majority carbon free and majority US company by 2025.”

“All of our financial metrics continued to improve in the second quarter and we were able to further lengthen the tenor of some of our subsidiaries’ debt at very attractive rates. Collections and days sales outstanding at our businesses remain strong, reflecting our predominantly investment grade rated customer base,” said Stephen Coughlin, AES Executive Vice President and Chief Financial Officer. “With our results year-to-date and positive expectations for the remainder of the year, we are well-positioned to achieve our 7% to 9% average annual growth through 2025.”

Q2 2022 Financial Results

Second quarter 2022 Diluted Earnings Per Share from Continuing Operations (Diluted EPS) was ($0.27), a decrease of $0.30 compared to second quarter 2021, primarily reflecting gains in 2021. These gains included the remeasurement of the Company’s interest in sPower’s development platform, the issuance of new shares by Fluence, and early contract terminations at Angamos. These impacts were partially offset by lower impairments in the second quarter of 2022.

Second quarter 2022 Adjusted Earnings Per Share¹ (Adjusted EPS, a non-GAAP financial measure) was $0.34, an increase of $0.03, or 10%, compared to second quarter 2021, primarily reflecting a lower adjusted tax rate and higher contributions from the Company’s South America Strategic Business Unit (SBU) due to increased ownership in AES Andes. These positive drivers were partially offset by lower contributions from the Company’s US and Utilities SBU due to impacts of outages and timing of renewables projects coming online.

Strategic Accomplishments

• In year-to-date 2022, the Company signed or was awarded 1,618 MW of renewables and energy storage under long-term Power Purchase Agreements (PPA) expected to come online in 2023 and 2024, primarily including 1,250 MW of solar and energy storage in the US.
• In the second quarter of 2022, the Company signed 531 MW of renewables and energy storage under long-term PPAs.
• In year-to-date 2022, the Company completed the construction or acquisition of 390 MW of solar projects in the United States and the Dominican Republic.
• The Company’s backlog is now 10,468 MW expected to be completed through 2025, including:
• 3,792 MW under construction; and
• 6,676 MW of renewable energy projects signed under long-term PPAs, but not yet under construction.
• In June 2022, the Company formed the US Solar Buyer consortium with three other leading solar companies to drive the expansion of the US solar supply chain and support the growth of the American solar industry.
• In year-to-date 2022, the Company signed agreements that will redirect excess LNG from the Company’s business in Panama to international customers.

Guidance and Expectations¹

The Company is reaffirming its 2022 Adjusted EPS¹ guidance of $1.55 to $1.65 and its 7% to 9% annualized growth rate target through 2025, from a base year of 2020.

Non-GAAP Financial Measures

See Non-GAAP Measures for definitions of 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, August 5, 2022 at 10:00 a.m. Eastern Time (ET). Interested parties may listen to the teleconference by dialing 1-844-200-6205 at least ten minutes before the start of the call. International callers should dial +1-929-526-1599.  The Participant Access Code for this call is 780498. 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, as well as a replay in downloadable MP3 format, will be accessible at www.aes.com beginning shortly after the completion of the call.

About AES

The AES Corporation is a Fortune 500 global power 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.

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