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.
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.
Adjusted EPS is a non-GAAP financial measure. See attached “Non-GAAP Measures” for definition of Adjusted EPS and a description of the adjustments to reconcile Adjusted EPS to Diluted EPS for the quarter ended September 30, 2022. The Company is not able to provide a corresponding GAAP equivalent or reconciliation for its Adjusted EPS guidance without unreasonable effort.
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.
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.
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.