AES Achieves 2019 Strategic and Financial Goals by Accelerating a Greener Energy Future

Reaffirms 7% to 9% average annual growth target through 2022

Announces a target to reduce coal-fired generation to below 30% by year-end 2020 and to less than 10% by year-end 2030

2019 Strategic Accomplishments


  • Upgraded to an investment grade credit rating by Fitch
  • Signed 2.8 GW of new PPAs for renewables in 2019, bringing backlog to 6.1 GW
  • Maintained global leadership in energy storage, with Fluence reaching 1.1 GW of projects delivered or awarded in 2019
  • Signed contracts to expand LNG import terminal in the Dominican Republic by 50 TBTU
  • Received approval to develop a 2.2 GW combined cycle plant, co-located with 480 TBTU of LNG storage in Vietnam

2019 Financial Results and Outlook

  • 2019 Diluted EPS of $0.45, compared to $1.48 in 2018
  • 2019 Adjusted EPS of $1.36, compared to $1.24 in 2018 and 2019 guidance of $1.30 to $1.38
  • Initiating 2020 guidance for Adjusted EPS of $1.40 to $1.48; reaffirming 7% to 9% average annual growth rate target in Adjusted EPS and Parent Free Cash Flow through 20221

ARLINGTON, Va.–(BUSINESS WIRE)–The AES Corporation (NYSE: AES) today reported financial results for the year ended December 31, 2019.

“In 2019, we achieved our strategic and financial goals, laying the foundation for strong growth in the coming decade,” said Andrés Gluski, AES President and Chief Executive Officer. “We are leading the global energy transition by completing 2.2 GW of new projects, adding 2.8 GW to our backlog, and expanding our LNG infrastructure in the Dominican Republic, Panama and Vietnam. At the same time, we are delivering innovative energy solutions through Fluence, Uplight, and a strategic partnership with Google. As a result, today we are announcing that we are accelerating our decarbonization goals for the Company and will aim to reduce our coal-fired generation to below 30% of total MWh by year-end 2020 and to less than 10% by 2030.”

“I am very pleased with our strong financial performance in 2019: delivering once again on all key metrics, while attaining an investment grade rating for the first time in our history,” said Gustavo Pimenta, AES Executive Vice President and Chief Financial Officer. “With our 2019 results, we are confident in reaffirming our expected 7% to 9% average annual growth in Adjusted EPS and Parent Free Cash Flow through 2022.”

Key Full Year 2019 Financial Results

Full year 2019 Diluted Earnings Per Share from Continuing Operations (Diluted EPS) was $0.45, a decrease of $1.03 compared to full year 2018, primarily reflecting lower net gains on asset sales of $1.15, particularly at Masinloc in the Philippines, partially offset by lower tax expense related to the impact of the 2018 Tax Cuts and Jobs Act.

Full year 2019 Adjusted Earnings Per Share (Adjusted EPS, a non-GAAP financial measure) was $1.36, an increase of $0.12, or 10%, primarily reflecting contributions from new businesses, including US renewables and AES Colon in Panama, and a lower effective tax rate, which was partially offset by the impact of asset sales.

Detailed Strategic Highlights

AES is leading the industry’s transition to clean energy by investing in sustainable growth and innovative solutions, while delivering superior results. The Company is taking advantage of favorable trends in clean power generation, transmission and distribution, and LNG infrastructure to grow the profitability of its business.

Sustainable Growth: Through its presence in key growth markets, AES is well-positioned to benefit from the global transition toward a more sustainable power generation mix.

  • In 2019, the Company signed 2,798 MW of renewables under long-term Power Purchase Agreements (PPA):

    • 1,130 MW of solar and solar plus storage in the U.S., including:

      • 665 MW at sPower
      • 365 MW at AES Distributed Energy
    • 884 MW of wind and solar at AES Gener in Chile and Colombia
    • 434 MW of wind and solar in Mexico, the Dominican Republic and Panama
    • 331 MW of wind and solar at AES Tiete in Brazil
  • As of December 31, 2019, the Company’s backlog of 6,144 MW includes:

    • 3,008 MW under construction and expected on-line through 2021
    • 3,136 MW of renewables signed under long-term PPAs
  • In 2019, the Company completed construction of 2,181 MW of new projects, including:

    • 1,320 MW OPGC 2 plant in India
    • 555 MW of solar and energy storage globally
    • 306 MW Mesa La Paz wind project in Mexico
  • In the third quarter of 2019, the Company finalized a joint venture in the Dominican Republic to increase its LNG storage capacity by 50 TBTU, in order to meet the demand from new take-or-pay contracts
  • In the third quarter of 2019, the Company received approval from the Government of Vietnam to develop the 2.2 GW Son My 2 combined cycle gas turbine (CCGT) power plant, which will be co-located with 480 TBTU of previously approved LNG storage
  • Today, the Company is announcing that it will participate in the proposed $500 million equity raise at AES Gener, by investing $335 million

    • AES Gener has signed contracts for 2.5 GW of renewables under its Green Blend and Extend strategy, which will diversify its portfolio and largely offset the roll-off of legacy contracts through 2024
    • AES Gener will utilize the equity raised to fund the 1.6 GW of new capacity needed to meet the demand under these Green Blend and Extend contracts

Innovative Solutions: The Company is developing and deploying innovative solutions such as battery-based energy storage, digital customer interfaces and energy management.

  • The Company’s joint venture with Siemens, Fluence, is the global leader in the fast-growing energy storage market, which is expected to increase by 15 to 20 GW annually

    • Fluence has been awarded or delivered 1.7 GW of projects, including 961 MW awarded in 2019
  • In the third quarter of 2019, the Company announced the merger of Simple Energy into Uplight, which is the market leader in providing cloud-based digital solutions to 100 million households in the U.S.
  • In the fourth quarter of 2019, the Company formed a 10-year strategic alliance with Google to develop and implement solutions to enable broad adoption of clean energy

Superior Results: By investing in sustainable growth and offering innovative solutions to customers, the Company is transforming its business mix to deliver superior results.

  • In the fourth quarter of 2019, following the Company’s efforts to strengthen its balance sheet, its credit rating was upgraded to investment grade (BBB-) by Fitch and its BB+ credit rating was raised to Positive outlook by S&P
  • The Company is executing on $100 million in annual run rate cost savings from digital initiatives, including utilizing data and technology for maintenance, outage prevention, inspection and procurement, to be fully realized by 2022
  • The Company announced a target to reduce its coal-fired generation below 30% of total generation volume by year-end 2020 and to less than 10% by year-end 2030

Guidance and Expectations1

The Company is initiating 2020 guidance for Adjusted EPS of $1.40 to $1.48, compared to 2019 Adjusted EPS of $1.36. The Company also expects 2020 Parent Free Cash Flow of $725 to $775 million, compared to 2019 Parent Free Cash Flow of $726 million. The Company is also reaffirming its average annual growth rate target of 7% to 9% through 2022 for both Adjusted EPS and Parent Free Cash Flow, from a 2018 base.

1

Adjusted EPS and Parent Free Cash Flow are non-GAAP financial measures. See attached “Non-GAAP Measures” for definition of Adjusted EPS and Parent Free Cash Flow. The Company is not able to provide a corresponding GAAP equivalent or reconciliation for its Adjusted EPS guidance or its Parent Free Cash Flow expectation without unreasonable effort. See “Non-GAAP measures” for description of the adjustments to reconcile Adjusted EPS to Diluted EPS for 2019.

2

From a base of 2018 Adjusted EPS of $1.24 and 2018 Parent Free Cash Flow of $689 million.

The Company’s 2020 guidance, expectations and growth rate target through 2022 are based on foreign currency and commodity forward curves as of December 31, 2019.

Non-GAAP Financial Measures

See Non-GAAP Measures for definitions of Adjusted Earnings Per Share, Adjusted Pre-Tax Contributions and Parent Free Cash Flow, 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, February 28, 2020 at 9:00 a.m. Eastern Standard Time (EST). Interested parties may listen to the teleconference by dialing 1-888-317-6003 at least ten minutes before the start of the call. International callers should dial +1-412-317-6061. The Conference ID for this call is 7940709. 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 (NYSE: AES) is a Fortune 500 global power company. We provide affordable, sustainable energy to 14 countries through our diverse portfolio of distribution businesses as well as thermal and renewable generation facilities. Our workforce is committed to operational excellence and meeting the world’s changing power needs. Our 2019 revenues were $10 billion and we own and manage $34 billion in total assets. To learn more, please visit www.aes.com. Follow AES on Twitter @TheAESCorp.

Safe Harbor Disclosure

This news release contains forward-looking statements within the meaning of the Securities Act of 1933 and of the Securities Exchange Act of 1934. Such forward-looking statements include, but are not limited to, those related to future earnings, growth and financial and operating performance. Forward-looking statements are not intended to be a guarantee of future results, but instead constitute AES’ current expectations based on reasonable assumptions. Forecasted financial information is based on certain material assumptions. These assumptions include, but are not limited to, our accurate projections of future interest rates, commodity price and foreign currency pricing, continued normal levels of operating performance and electricity volume at our distribution companies and operational performance at our generation businesses consistent with historical levels, as well as the execution of PPAs, conversion of our backlog and growth investments at normalized investment levels and rates of return consistent with prior experience.

Actual results could differ materially from those projected in our forward-looking statements due to risks, uncertainties and other factors. Important factors that could affect actual results are discussed in AES’ filings with the Securities and Exchange Commission (the “SEC”), including, but not limited to, the risks discussed under Item 1A: “Risk Factors” and Item 7: Management’s Discussion & Analysis in AES’ 2019 Annual Report on Form 10-K and in subsequent reports filed with the SEC. Readers are encouraged to read AES’ filings to learn more about the risk factors associated with AES’ business. AES undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Any Stockholder who desires a copy of the Company’s 2019 Annual Report on Form 10-K filed February 28, 2020 with the SEC may obtain a copy (excluding Exhibits) without charge by addressing a request to the Office of the Corporate Secretary, The AES Corporation, 4300 Wilson Boulevard, Arlington, Virginia 22203. Exhibits also may be requested, but a charge equal to the reproduction cost thereof will be made. A copy of the Form 10-K may be obtained by visiting the Company’s website at www.aes.com.

THE AES CORPORATION

Consolidated Statements of Operations

 

 

Year Ended December 31,

 

 

2019

 

2018

 

2017

 

 

(in millions, except per share amounts)

Revenue:

 

 

 

 

 

 

Regulated

 

$

3,028

 

 

$

2,939

 

 

$

3,109

 

Non-Regulated

 

7,161

 

 

7,797

 

 

7,421

 

Total revenue

 

10,189

 

 

10,736

 

 

10,530

 

Cost of Sales:

 

 

 

 

 

 

Regulated

 

(2,484

)

 

(2,473

)

 

(2,650

)

Non-Regulated

 

(5,356

)

 

(5,690

)

 

(5,415

)

Total cost of sales

 

(7,840

)

 

(8,163

)

 

(8,065

)

Operating margin

 

2,349

 

 

2,573

 

 

2,465

 

General and administrative expenses

 

(196

)

 

(192

)

 

(215

)

Interest expense

 

(1,050

)

 

(1,056

)

 

(1,170

)

Interest income

 

318

 

 

310

 

 

244

 

Loss on extinguishment of debt

 

(169

)

 

(188

)

 

(68

)

Other expense

 

(80

)

 

(58

)

 

(58

)

Other income

 

145

 

 

72

 

 

120

 

Gain (loss) on disposal and sale of business interests

 

28

 

 

984

 

 

(52

)

Asset impairment expense

 

(185

)

 

(208

)

 

(537

)

Foreign currency transaction gains (losses)

 

(67

)

 

(72

)

 

42

 

Other non-operating expense

 

(92

)

 

(147

)

 

 

INCOME FROM CONTINUING OPERATIONS BEFORE TAXES AND EQUITY IN EARNINGS OF AFFILIATES

 

1,001

 

 

2,018

 

 

771

 

Income tax expense

 

(352

)

 

(708

)

 

(990

)

Net equity in earnings (losses) of affiliates

 

(172

)

 

39

 

 

71

 

INCOME (LOSS) FROM CONTINUING OPERATIONS

 

477

 

 

1,349

 

 

(148

)

Loss from operations of discontinued businesses, net of income tax expense of $0, $2, and $21, respectively

 

 

 

(9

)

 

(18

)

Gain (loss) from disposal of discontinued businesses, net of income tax expense of $0, $44, and $0, respectively

 

1

 

 

225

 

 

(611

)

NET INCOME (LOSS)

 

478

 

 

1,565

 

 

(777

)

Less: Income from continuing operations attributable to noncontrolling interests and redeemable stock of subsidiaries

 

(175

)

 

(364

)

 

(359

)

Less: Loss (income) from discontinued operations attributable to noncontrolling interests

 

 

 

2

 

 

(25

)

NET INCOME (LOSS) ATTRIBUTABLE TO THE AES CORPORATION

 

$

303

 

 

$

1,203

 

 

$

(1,161

)

AMOUNTS ATTRIBUTABLE TO THE AES CORPORATION COMMON STOCKHOLDERS:

 

 

 

 

 

 

Income (loss) from continuing operations, net of tax

 

$

302

 

 

$

985

 

 

$

(507

)

Income (loss) from discontinued operations, net of tax

 

1

 

 

218

 

 

(654

)

NET INCOME (LOSS) ATTRIBUTABLE TO THE AES CORPORATION

 

$

303

 

 

$

1,203

 

 

$

(1,161

)

BASIC EARNINGS PER SHARE:

 

 

 

 

 

 

Income (loss) from continuing operations attributable to The AES Corporation common stockholders, net of tax

 

$

0.46

 

 

$

1.49

 

 

$

(0.77

)

Income (loss) from discontinued operations attributable to The AES Corporation common stockholders, net of tax

 

 

 

0.33

 

 

(0.99

)

NET INCOME (LOSS) ATTRIBUTABLE TO THE AES CORPORATION COMMON STOCKHOLDERS

 

$

0.46

 

 

$

1.82

 

 

$

(1.76

)

DILUTED EARNINGS PER SHARE:

 

 

 

 

 

 

Income (loss) from continuing operations attributable to The AES Corporation common stockholders, net of tax

 

$

0.45

 

 

$

1.48

 

 

$

(0.77

)

Income (loss) from discontinued operations attributable to The AES Corporation common stockholders, net of tax

 

 

 

0.33

 

 

(0.99

)

NET INCOME (LOSS) ATTRIBUTABLE TO THE AES CORPORATION COMMON STOCKHOLDERS

 

$

0.45

 

 

$

1.81

 

 

$

(1.76

)

DILUTED SHARES OUTSTANDING

 

 

667

 

 

 

665

 

 

 

660

 

THE AES CORPORATION

Consolidated Statements of Operations (Unaudited)

 

 

Three Months Ended December 31,

 

 

2019

 

2018

 

 

(in millions, except per share amounts)

Revenue:

 

 

 

 

Regulated

 

$

720

 

 

$

724

 

Non-Regulated

 

1,711

 

 

1,898

 

Total revenue

 

2,431

 

 

2,622

 

Cost of Sales:

 

 

 

 

Regulated

 

(611

)

 

(617

)

Non-Regulated

 

(1,260

)

 

(1,359

)

Total cost of sales

 

(1,871

)

 

(1,976

)

Operating margin

 

560

 

 

646

 

General and administrative expenses

 

(60

)

 

(58

)

Interest expense

 

(262

)

 

(257

)

Interest income

 

76

 

 

79

 

Loss on extinguishment of debt

 

(43

)

 

(1

)

Other expense

 

(45

)

 

(16

)

Other income

 

19

 

 

42

 

Gain on disposal and sale of business interests

 

19

 

 

128

 

Asset impairment expense

 

(69

)

 

(42

)

Foreign currency transaction gains (losses)

 

2

 

 

(28

)

Other non-operating expense

 

(92

)

 

(147

)

INCOME FROM CONTINUING OPERATIONS BEFORE TAXES AND EQUITY IN EARNINGS OF AFFILIATES

 

105

 

 

346

 

Income tax expense

 

(50

)

 

(199

)

Net equity in earnings (losses) of affiliates

 

(175

)

 

8

 

INCOME (LOSS) FROM CONTINUING OPERATIONS

 

(120

)

 

155

 

Gain (loss) from disposal and impairments of discontinued businesses

 

 

 

26

 

NET INCOME (LOSS)

 

(120

)

 

181

 

Less: Income from continuing operations attributable to noncontrolling interests and redeemable stock of subsidiaries

 

42

 

 

(53

)

NET INCOME (LOSS) ATTRIBUTABLE TO THE AES CORPORATION

 

$

(78

)

 

$

128

 

AMOUNTS ATTRIBUTABLE TO THE AES CORPORATION COMMON STOCKHOLDERS:

 

 

 

 

Income (loss) from continuing operations, net of tax

 

$

(78

)

 

$

102

 

Income from discontinued operations, net of tax

 

 

 

26

 

NET INCOME (LOSS) ATTRIBUTABLE TO THE AES CORPORATION

 

$

(78

)

 

$

128

 

BASIC EARNINGS PER SHARE:

 

 

 

 

Income (loss) from continuing operations attributable to The AES Corporation common stockholders, net of tax

 

$

(0.12

)

 

$

0.15

 

Income from discontinued operations attributable to The AES Corporation common stockholders, net of tax

 

 

 

0.04

 

NET INCOME (LOSS) ATTRIBUTABLE TO THE AES CORPORATION COMMON STOCKHOLDERS

 

$

(0.12

)

 

$

0.19

 

DILUTED EARNINGS PER SHARE:

 

 

 

 

Income (loss) from continuing operations attributable to The AES Corporation common stockholders, net of tax

 

$

(0.12

)

 

$

0.15

 

Income from discontinued operations attributable to The AES Corporation common stockholders, net of tax

 

 

 

0.04

 

NET INCOME (LOSS) ATTRIBUTABLE TO THE AES CORPORATION COMMON STOCKHOLDERS

 

$

(0.12

)

 

$

0.19

 

DILUTED SHARES OUTSTANDING

 

 

664

 

 

 

665

 

THE AES CORPORATION

Strategic Business Unit (SBU) Information

(Unaudited)

 

 

 

 

 

 

 

Three Months Ended

December 31,

 

Year Ended

December 31,

 

(in millions)

 

2019

 

2018

 

2019

 

2018

REVENUE

 

 

 

 

 

 

 

 

US and Utilities SBU

 

$

933

 

 

$

978

 

 

$

4,058

 

 

$

4,230

 

South America SBU

 

770

 

 

869

 

 

3,208

 

 

3,533

 

MCAC SBU

 

484

 

 

452

 

 

1,882

 

 

1,728

 

Eurasia SBU

 

246

 

 

320

 

 

1,047

 

 

1,255

 

Corporate and Other

 

7

 

 

20

 

 

46

 

 

41

 

Eliminations

 

(9

)

 

(17

)

 

(52

)

 

(51

)

Total Revenue

 

$

2,431

 

 

$

2,622

 

 

$

10,189

 

 

$

10,736

 

THE AES CORPORATION

Consolidated Balance Sheets

 

 

 

December 31,

2019

 

December 31,

2018

 

 

(in millions, except share and per share data)

ASSETS

 

 

 

 

CURRENT ASSETS

 

 

 

 

Cash and cash equivalents

 

$

1,029

 

 

$

1,166

 

Restricted cash

 

336

 

 

370

 

Short-term investments

 

400

 

 

313

 

Accounts receivable, net of allowance for doubtful accounts of $20 and $23, respectively

 

1,479

 

 

1,595

 

Inventory

 

487

 

 

577

 

Prepaid expenses

 

80

 

 

130

 

Other current assets

 

802

 

 

807

 

Current held-for-sale assets

 

618

 

 

57

 

Total current assets

 

5,231

 

 

5,015

 

NONCURRENT ASSETS

 

 

 

 

Property, Plant and Equipment:

 

 

 

 

Land

 

447

 

 

449

 

Electric generation, distribution assets and other

 

25,383

 

 

25,242

 

Accumulated depreciation

 

(8,505

)

 

(8,227

)

Construction in progress

 

5,249

 

 

3,932

 

Property, plant and equipment, net

 

22,574

 

 

21,396

 

Other Assets:

 

 

 

 

Investments in and advances to affiliates

 

966

 

 

1,114

 

Debt service reserves and other deposits

 

207

 

 

467

 

Goodwill

 

1,059

 

 

1,059

 

Other intangible assets, net of accumulated amortization of $307 and $457, respectively

 

469

 

 

436

 

Deferred income taxes

 

156

 

 

97

 

Loan receivable

 

1,351

 

 

1,423

 

Other noncurrent assets

 

1,635

 

 

1,514

 

Total other assets

 

5,843

 

 

6,110

 

TOTAL ASSETS

 

$

33,648

 

 

$

32,521

 

LIABILITIES AND EQUITY

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

Accounts payable

 

$

1,311

 

 

$

1,329

 

Accrued interest

 

201

 

 

191

 

Accrued non-income taxes

 

253

 

 

250

 

Accrued and other liabilities

 

1,021

 

 

962

 

Non-recourse debt, including $337 and $479, respectively, related to variable interest entities

 

1,868

 

 

1,659

 

Current held-for-sale liabilities

 

442

 

 

8

 

Total current liabilities

 

5,096

 

 

4,399

 

NONCURRENT LIABILITIES

 

 

 

 

Recourse debt

 

3,391

 

 

3,650

 

Non-recourse debt, including $3,872 and $2,922 respectively, related to variable interest entities

 

14,914

 

 

13,986

 

Deferred income taxes

 

1,213

 

 

1,280

 

Other noncurrent liabilities

 

2,917

 

 

2,723

 

Total noncurrent liabilities

 

22,435

 

 

21,639

 

Commitments and Contingencies

 

 

 

 

Redeemable stock of subsidiaries

 

888

 

 

879

 

EQUITY

 

 

 

 

THE AES CORPORATION STOCKHOLDERS’ EQUITY

 

 

 

 

Common stock ($0.01 par value, 1,200,000,000 shares authorized; 817,843,916 issued and 663,952,656 outstanding at December 31, 2019 and 817,203,691 issued and 662,298,096 outstanding at December 31, 2018)

 

8

 

 

8

 

Additional paid-in capital

 

7,776

 

 

8,154

 

Accumulated deficit

 

(692

)

 

(1,005

)

Accumulated other comprehensive loss

 

(2,229

)

 

(2,071

)

Treasury stock, at cost (153,891,260 and 154,905,595 shares at December 31, 2019 and December 31, 2018, respectively)

 

(1,867

)

 

(1,878

)

Total AES Corporation stockholders’ equity

 

2,996

 

 

3,208

 

NONCONTROLLING INTERESTS

 

2,233

 

 

2,396

 

Total equity

 

5,229

 

 

5,604

 

TOTAL LIABILITIES AND EQUITY

 

$

33,648

 

 

$

32,521

 

THE AES CORPORATION

Consolidated Statements of Cash Flows

(Unaudited)

 

 

 

Three Months Ended

December 31,

 

Year Ended

December 31,

 

 

2019

 

2018

 

2019

 

2018

OPERATING ACTIVITIES:

 

(in millions)

 

(in millions)

Net income (loss)

 

$

(120

)

 

$

181

 

 

$

478

 

 

$

1,565

 

Adjustments to net income (loss):

 

 

 

 

 

 

 

 

Depreciation and amortization

 

271

 

 

233

 

 

1,045

 

 

1,003

 

Loss (gain) on disposal and sale of business interests

 

(19

)

 

(128

)

 

(28

)

 

(984

)

Impairment expenses

 

161

 

 

183

 

 

277

 

 

355

 

Deferred income taxes

 

(12

)

 

92

 

 

(8

)

 

313

 

Loss on extinguishment of debt

 

43

 

 

1

 

 

169

 

 

188

 

Loss on sale and disposal of assets

 

33

 

 

4

 

 

54

 

 

27

 

Net loss (gain) from disposal and impairments of discontinued businesses

 

 

 

(26

)

 

 

 

(269

)

Loss of affiliates, net of dividends

 

176

 

 

5

 

 

194

 

 

48

 

Other

 

64

 

 

119

 

 

324

 

 

283

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

(Increase) decrease in accounts receivable

 

46

 

 

(81

)

 

73

 

 

(206

)

(Increase) decrease in inventory

 

31

 

 

(23

)

 

28

 

 

(36

)

(Increase) decrease in prepaid expenses and other current assets

 

59

 

 

(37

)

 

42

 

 

(22

)

(Increase) decrease in other assets

 

(21

)

 

(10

)

 

(20

)

 

(32

)

Increase (decrease) in accounts payable and other current liabilities

 

6

 

 

91

 

 

(6

)

 

62

 

Increase (decrease) in income tax payables, net and other tax payables

 

41

 

 

54

 

 

(83

)

 

(7

)

Increase (decrease) in other liabilities

 

(68

)

 

4

 

 

(73

)

 

55

 

Net cash provided by operating activities

 

691

 

 

662

 

 

2,466

 

 

2,343

 

INVESTING ACTIVITIES:

 

 

 

 

 

 

 

 

Capital expenditures

 

(777

)

 

(529

)

 

(2,405

)

 

(2,121

)

Acquisitions of business interests, net of cash and restricted cash acquired

 

(136

)

 

 

 

(192

)

 

(66

)

Proceeds from the sale of business interests, net of cash and restricted cash sold

 

(48

)

 

224

 

 

178

 

 

2,020

 

Sale of short-term investments

 

142

 

 

292

 

 

666

 

 

1,302

 

Purchase of short-term investments

 

(198

)

 

(196

)

 

(770

)

 

(1,411

)

Contributions and loans to equity affiliates

 

(66

)

 

(44

)

 

(324

)

 

(145

)

Insurance proceeds

 

71

 

 

9

 

 

150

 

 

17

 

Other investing

 

2

 

 

(71

)

 

(24

)

 

(101

)

Net cash used in investing activities

 

(1,010

)

 

(315

)

 

(2,721

)

 

(505

)

FINANCING ACTIVITIES:

 

 

 

 

 

 

 

 

Borrowings under the revolving credit facilities

 

557

 

 

431

 

 

2,026

 

 

1,865

 

Repayments under the revolving credit facilities

 

(694

)

 

(643

)

 

(1,735

)

 

(2,238

)

Issuance of recourse debt

 

 

 

 

 

 

 

1,000

 

Repayments of recourse debt

 

(1

)

 

(152

)

 

(450

)

 

(1,933

)

Issuance of non-recourse debt

 

2,248

 

 

419

 

 

5,828

 

 

1,928

 

Repayments of non-recourse debt

 

(1,853

)

 

(272

)

 

(4,831

)

 

(1,411

)

Payments for financing fees

 

(57

)

 

(7

)

 

(126

)

 

(39

)

Distributions to noncontrolling interests

 

(172

)

 

(141

)

 

(427

)

 

(340

)

Contributions from noncontrolling interests and redeemable security holders

 

2

 

 

3

 

 

17

 

 

43

 

Dividends paid on AES common stock

 

(90

)

 

(86

)

 

(362

)

 

(344

)

Payments for financed capital expenditures

 

(20

)

 

(89

)

 

(146

)

 

(275

)

Other financing

 

127

 

 

57

 

 

120

 

 

101

 

Net cash provided by (used in) financing activities

 

47

 

 

(480

)

 

(86

)

 

(1,643

)

Effect of exchange rate changes on cash, cash equivalents and restricted cash

 

10

 

 

(4

)

 

(18

)

 

(54

)

(Increase) decrease in cash, cash equivalents and restricted cash of discontinued operations and held-for-sale businesses

 

(7

)

 

18

 

 

(72

)

 

74

 

Total increase (decrease) in cash, cash equivalents and restricted cash

 

(269

)

 

(119

)

 

(431

)

 

215

 

Cash, cash equivalents and restricted cash, beginning

 

1,841

 

 

2,122

 

 

2,003

 

 

1,788

 

Cash, cash equivalents and restricted cash, ending

 

$

1,572

 

 

$

2,003

 

 

$

1,572

 

 

$

2,003

 

SUPPLEMENTAL DISCLOSURES:

 

 

 

 

 

 

 

 

Cash payments for interest, net of amounts capitalized

 

$

265

 

 

$

320

 

 

$

946

 

 

$

1,003

 

Cash payments for income taxes, net of refunds

 

67

 

 

57

 

 

363

 

 

370

 

SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES:

 

 

 

 

 

 

 

 

Refinancing of non-recourse debt at Mong Duong

 

$

 

 

$

 

 

$

1,081

 

 

$

 

Partial reinvestment of consideration from the sPower transaction

 

 

 

 

 

58

 

 

 

Acquisition of intangible assets

 

 

 

2

 

 

 

 

16

 

Contributions to equity affiliates

 

(1

)

 

 

 

61

 

 

20

 

Exchange of debentures for the acquisition of the Guaimbê Solar Complex

 

 

 

 

 

 

 

119

 

Acquisition of the remaining interest in a Distributed Energy equity affiliate

 

 

 

23

 

 

 

 

23

 

Dividends declared but not yet paid

95

90

 

95

90

 

Contacts

Investor Contact: Ahmed Pasha 703-682-6451

Media Contact: Amy Ackerman 703-682-6399

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