AES Corporation ( (AES) ) has released its Q3 earnings. Here is a breakdown of the information AES Corporation presented to its investors.
The AES Corporation, a global energy company, focuses on delivering sustainable energy solutions across various sectors, including renewables and utilities. In their latest earnings report for the third quarter of 2024, AES highlighted significant achievements, including the completion of 1.2 GW of construction and the addition of 2.2 GW of new contracts in renewables and data center growth. The company also reaffirmed its 2024 guidance, indicating confidence in its strategic direction and long-term growth projections.
Key financial figures reveal a mixed performance. The diluted earnings per share (EPS) increased to $0.72 from $0.32 in the same quarter of the previous year, while net income attributable to AES rose significantly to $502 million. However, the net income for the quarter saw a decline from $291 million in Q3 2023 to $210 million, primarily due to lower contributions from specific business units. Adjusted EBITDA dropped to $692 million, down from $990 million in Q3 2023, largely affected by severe drought conditions in South America and changes in the Energy Infrastructure segment.
Strategically, AES has been active in expanding its portfolio with 2.2 GW of new contracts and progressing in its asset sale strategy, having closed significant deals such as selling a 47.3% stake in AES Brasil. The company’s current PPA backlog stands at 12.7 GW, which includes 4.0 GW under construction, positioning it well for future growth. AES’s strategic initiatives are aligned with its goal of achieving a robust financial performance while transitioning to greener energy solutions.
Looking ahead, AES maintains a positive outlook, reaffirming its 2024 guidance and long-term growth targets through 2027. Despite challenges such as extreme weather in Colombia and lower margins in certain segments, the company expects to achieve the upper half of its adjusted EPS guidance range, supported by new renewables projects, base rate growth at U.S. utilities, and improved margins in Chile. AES remains committed to its strategic objectives and enhancing shareholder value through sustainable energy initiatives.
