AES Expects Full Year 2022 Adjusted EPS to be at or Near the High End of Guidance Range of $1.55 to $1.65

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

“With our strong year-to-date performance, we now expect our full year Adjusted EPS¹ to come in at or near the high end of our guidance range of $1.55 to $1.65.  Our renewables business continues to grow, and we completed 500 MW of projects and signed 1.6 GW of new long-term contracts,” said Andrés Gluski, AES President and Chief Executive Officer.  “Our backlog of projects under long-term PPAs now stands at 11.2 GW, with the vast majority expected to come online through 2025, representing a key source of our future growth.  With our global pipeline of 64 GW and the recent enactment of the Inflation Reduction Act (IRA) in the United States, we are well-positioned to continue delivering attractive returns to our shareholders.”

“Our proven business model of signing long-term contracts with investment grade commercial and industrial customers continues to deliver strong and resilient financial results even while volatile macroeconomic conditions persist globally.  During the third quarter we signed additional agreements to redirect excess LNG from Panama to international customers, highlighting the strategic flexibility and strength of our portfolio,” said Stephen Coughlin, AES Executive Vice President and Chief Financial Officer.  “Our results so far this year, along with our expectations for the remainder of 2022, give us confidence that we will deliver Adjusted EPS¹ at or near the high end of our guidance range and keeps us well on track to achieve our annualized growth target of 7% to 9% through 2025.”

Q3 2022 Financial Results

Third quarter 2022 Diluted Earnings Per Share from Continuing Operations (Diluted EPS) was $0.59, an increase of $0.11 compared to third quarter 2021, primarily driven by higher margins from the Mexico, Central America and the Caribbean (MCAC) Strategic Business Unit (SBU) due to redirecting excess LNG to international customers.  This favorability was partially offset by lower margins from the US and Utilities SBU primarily due to unrealized derivative losses, and the one-time settlement and recognition of previously deferred fuel and energy purchases.

Third quarter 2022 Adjusted Earnings Per Share¹ (Adjusted EPS, a non-GAAP financial measure) was $0.63, an increase of $0.13, or 26%, compared to third quarter 2021, primarily reflecting the same drivers as Diluted EPS.

Strategic Accomplishments

• In year-to-date 2022, the Company signed 3,178 MW of renewables and energy storage under long-term Power Purchase Agreements (PPA), including 1,625 MW of solar, energy storage and wind in the US.
• Since August 4, 2022, the Company signed 1,560 MW of renewables and energy storage under long-term PPAs. 
• In year-to-date 2022, the Company completed the construction or acquisition of 861 MW of energy storage, wind and solar projects in the United States, Chile, and the Dominican Republic.
• The Company’s backlog, which includes projects with signed contracts, but which are not yet operational, is now 11,230 MW, including 5,188 MW under construction.
• The Company signed agreements that will redirect excess LNG from the Company’s business in Panama to international customers.
• AES Ohio filed a new Electric Security Plan (ESP 4) to provide a regulatory foundation to upgrade and modernize its network and settle any outstanding regulatory proceedings.

Guidance and Expectations¹

The Company now expects full year 2022 Adjusted EPS¹ to be at or near the high end of its guidance range of $1.55 to $1.65.  The Company is reaffirming 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, November 4, 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 298360.  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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