Strategic Accomplishments
- With investment grade credit rating from Moody's, attained
investment grade ratings from all three major ratings agencies
- Signed or awarded 1.1 GW of PPAs for new renewable energy
projects in the first quarter of 2022, increasing the backlog to
10.3 GW
- Construction on schedule for more than 2 GW of renewable energy
projects expected to come online in 2022, with solar panels secured
for all projects in the US
Q1 2022 Financial Highlights
- Diluted EPS of $0.16, compared to
($0.22) in Q1 2021
- Adjusted EPS1 of $0.21, compared to $0.28 in Q1 2021
Financial Position and Outlook
- Reaffirming 2022 Adjusted EPS1 guidance range of
$1.55 to $1.65
- Reaffirming 7% to 9% annualized growth target through 2025, off
a base year of 2020
ARLINGTON, Va., May 5, 2022
/PRNewswire/ -- The AES Corporation (NYSE: AES) today reported
financial results for the quarter ended March 31, 2022.
"So far this year, we have attained a third investment grade
rating and maintained our strategic momentum from last year by
growing our backlog of contracted projects to 10.3 GW. We
expect to complete all of these projects through 2025 and they will
be a key contributor to our expected annualized growth of 7% to
9%," said Andrés Gluski, AES President and Chief Executive
Officer. "In spite of supply chain issues impacting many
sectors, we have secured solar panels for all of our projects in
the US this year and currently expect no delays in their planned
commissionings."
"Our resilient business model, which is centered around
long-term contracted generation and utilities, continues to
insulate us from macroeconomic headwinds such as inflation and
interest rate fluctuations," said Stephen
Coughlin, AES Executive Vice President and Chief Financial
Officer. "As in prior years, we expect the bulk of our
earnings will be generated in the second half of the year and we
remain on track to achieve our full year Adjusted EPS guidance of
$1.55 to $1.65."
Q1 2022 Financial Results
First quarter 2022 Diluted Earnings Per Share from Continuing
Operations (Diluted EPS) was $0.16,
an increase of $0.38 compared to
first quarter 2021, primarily reflecting lower impairments,
partially offset by net gains in 2021 from early contract
terminations at Angamos, higher income tax expense, the impact of
realized gains on de-designated interest rate swaps in 2021, and
the gain on remeasurement of the Company's interest in sPower's
development platform in 2021.
First quarter 2022 Adjusted Earnings Per Share1
(Adjusted EPS, a non-GAAP financial measure) was $0.21, a decrease of $0.07 compared to first quarter 2021, primarily
reflecting the impact of realized gains on de-designated interest
rate swaps in 2021 and lower contributions from the Company's
Mexico, Central America and the Caribbean (MCAC) Strategic Business Unit
(SBU), partially offset by higher contributions from the South
America SBU.
Strategic Accomplishments
- In the first quarter of 2022, the Company signed or was awarded
1,087 MW of renewables and energy storage under long-term Power
Purchase Agreements (PPA), primarily including 1,019 MW of solar
and energy storage in the US.
- The Company's backlog is now 10,307 MW expected to be completed
through 2025, including:
-
- 3,735 MW under construction; and
- 6,572 MW of renewable energy projects signed under long-term
PPAs.
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.
1
|
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
March 31, 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.
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, May 6, 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 606102. 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 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.
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 expectations regarding 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, rates of
return consistent with prior experience and the COVID-19
pandemic.
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' 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, except where required by
law.
Any Stockholder who desires a copy of the Company's 2021 Annual
Report on Form 10-K filed February 28, 2022 with the SEC may
obtain a copy (excluding the exhibits thereto) 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 Annual Report on Form 10-K may be
obtained by visiting the Company's website at www.aes.com.
Website Disclosure
AES uses its website, including its quarterly updates, as
channels of distribution of Company information. The
information AES posts through these channels may be deemed
material. Accordingly, investors should monitor our website,
in addition to following AES' press releases, quarterly SEC filings
and public conference calls and webcasts. In addition, you
may automatically receive e-mail alerts and other information about
AES when you enroll your e-mail address by visiting the "Subscribe
to Alerts" page of AES' Investors website. The contents of
AES' website, including its quarterly updates, are not, however,
incorporated by reference into this release.
THE AES
CORPORATION Condensed Consolidated Statements of
Operations (Unaudited)
|
|
|
Three Months Ended March 31,
|
|
2022
|
|
2021
|
|
(in millions, except
per share amounts)
|
Revenue:
|
|
|
|
Regulated
|
$
835
|
|
$
707
|
Non-Regulated
|
2,017
|
|
1,928
|
Total
revenue
|
2,852
|
|
2,635
|
Cost of
Sales:
|
|
|
|
Regulated
|
(705)
|
|
(582)
|
Non-Regulated
|
(1,617)
|
|
(1,389)
|
Total
cost of sales
|
(2,322)
|
|
(1,971)
|
Operating
margin
|
530
|
|
664
|
General and
administrative expenses
|
(52)
|
|
(46)
|
Interest
expense
|
(258)
|
|
(190)
|
Interest
income
|
75
|
|
68
|
Loss on
extinguishment of debt
|
(6)
|
|
(1)
|
Other
expense
|
(12)
|
|
(16)
|
Other
income
|
6
|
|
43
|
Gain (loss) on
disposal and sale of business interests
|
1
|
|
(5)
|
Asset impairment
expense
|
(1)
|
|
(473)
|
Foreign currency
transaction losses
|
(19)
|
|
(35)
|
INCOME FROM
CONTINUING OPERATIONS BEFORE TAXES AND EQUITY IN EARNINGS OF
AFFILIATES
|
264
|
|
9
|
Income tax
expense
|
(60)
|
|
(8)
|
Net equity in
losses of affiliates
|
(33)
|
|
(30)
|
NET INCOME
(LOSS)
|
171
|
|
(29)
|
Less: Net income
attributable to noncontrolling interests and redeemable stock of
subsidiaries
|
(56)
|
|
(119)
|
NET INCOME
(LOSS) ATTRIBUTABLE TO THE AES CORPORATION
|
$
115
|
|
$
(148)
|
BASIC EARNINGS PER
SHARE:
|
|
|
|
NET INCOME
(LOSS) ATTRIBUTABLE TO THE AES CORPORATION COMMON
STOCKHOLDERS
|
$
0.17
|
|
$
(0.22)
|
DILUTED EARNINGS PER
SHARE:
|
|
|
|
NET INCOME
(LOSS) ATTRIBUTABLE TO THE AES CORPORATION COMMON
STOCKHOLDERS
|
$
0.16
|
|
$
(0.22)
|
DILUTED SHARES
OUTSTANDING
|
711
|
|
666
|
THE AES
CORPORATION Strategic
Business Unit (SBU) Information
(Unaudited)
|
|
|
|
|
|
Three Months Ended
March 31,
|
(in
millions)
|
2022
|
|
2021
|
REVENUE
|
|
|
|
US and
Utilities SBU
|
$
1,117
|
|
$
949
|
South
America SBU
|
810
|
|
884
|
MCAC
SBU
|
566
|
|
535
|
Eurasia
SBU
|
368
|
|
270
|
Corporate
and Other
|
23
|
|
24
|
Eliminations
|
(32)
|
|
(27)
|
Total
Revenue
|
$
2,852
|
|
$
2,635
|
THE AES
CORPORATION Condensed Consolidated Balance Sheets
(Unaudited)
|
|
|
March 31,
2022
|
|
December 31,
2021
|
|
(in millions,
except share
and per share
data)
|
ASSETS
|
|
|
|
CURRENT
ASSETS
|
|
|
|
Cash and
cash equivalents
|
$
1,056
|
|
$
943
|
Restricted cash
|
334
|
|
304
|
Short-term investments
|
440
|
|
232
|
Accounts
receivable, net of allowance for doubtful accounts of $5 and $5,
respectively
|
1,523
|
|
1,418
|
Inventory
|
688
|
|
604
|
Prepaid
expenses
|
91
|
|
142
|
Other
current assets
|
1,110
|
|
897
|
Current
held-for-sale assets
|
900
|
|
816
|
Total current assets
|
6,142
|
|
5,356
|
NONCURRENT
ASSETS
|
|
|
|
Property, Plant
and Equipment:
|
|
|
|
Land
|
443
|
|
426
|
Electric
generation, distribution assets and other
|
26,112
|
|
25,552
|
Accumulated depreciation
|
(8,734)
|
|
(8,486)
|
Construction in progress
|
2,632
|
|
2,414
|
Property, plant and equipment, net
|
20,453
|
|
19,906
|
Other
Assets:
|
|
|
|
Investments in and advances to affiliates
|
1,081
|
|
1,080
|
Debt
service reserves and other deposits
|
172
|
|
237
|
Goodwill
|
1,182
|
|
1,177
|
Other
intangible assets, net of accumulated amortization of $411 and
$385, respectively
|
1,585
|
|
1,450
|
Deferred
income taxes
|
385
|
|
409
|
Other
noncurrent assets, net of allowance of $23 and $23,
respectively
|
2,489
|
|
2,188
|
Noncurrent held-for-sale assets
|
1,159
|
|
1,160
|
Total other assets
|
8,053
|
|
7,701
|
TOTAL
ASSETS
|
$
34,648
|
|
$
32,963
|
LIABILITIES AND
EQUITY
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
Accounts
payable
|
$
1,288
|
|
$
1,153
|
Accrued
interest
|
199
|
|
182
|
Accrued
non-income taxes
|
294
|
|
266
|
Accrued
and other liabilities
|
1,140
|
|
1,205
|
Non-recourse debt, including $657 and $302, respectively, related
to variable interest entities
|
2,254
|
|
1,367
|
Current
held-for-sale liabilities
|
578
|
|
559
|
Total current liabilities
|
5,753
|
|
4,732
|
NONCURRENT
LIABILITIES
|
|
|
|
Recourse
debt
|
3,982
|
|
3,729
|
Non-recourse debt, including $1,909 and $2,223, respectively,
related to variable interest entities
|
14,016
|
|
13,603
|
Deferred
income taxes
|
1,035
|
|
977
|
Other
noncurrent liabilities
|
3,275
|
|
3,358
|
Noncurrent held-for-sale liabilities
|
739
|
|
740
|
Total noncurrent liabilities
|
23,047
|
|
22,407
|
Commitments and
Contingencies
|
|
|
|
Redeemable stock of
subsidiaries
|
1,134
|
|
1,257
|
EQUITY
|
|
|
|
THE AES CORPORATION
STOCKHOLDERS' EQUITY
|
|
|
|
Preferred
stock (without par value, 50,000,000 shares authorized; 1,043,500
issued and outstanding at March 31, 2022 and December 31, 2021,
respectively)
|
838
|
|
838
|
Common
stock ($0.01 par value, 1,200,000,000 shares authorized;
818,735,314 issued and 667,859,645 outstanding at March 31, 2022
and 818,717,043 issued and 666,793,625 outstanding at December 31,
2021)
|
8
|
|
8
|
Additional paid-in capital
|
6,903
|
|
7,106
|
Accumulated deficit
|
(974)
|
|
(1,089)
|
Accumulated other comprehensive loss
|
(1,899)
|
|
(2,220)
|
Treasury
stock, at cost (150,875,669 and 151,923,418 shares at March 31,
2022 and December 31, 2021, respectively)
|
(1,832)
|
|
(1,845)
|
Total AES Corporation stockholders' equity
|
3,044
|
|
2,798
|
NONCONTROLLING
INTERESTS
|
1,670
|
|
1,769
|
Total equity
|
4,714
|
|
4,567
|
TOTAL LIABILITIES AND
EQUITY
|
$
34,648
|
|
$
32,963
|
THE AES
CORPORATION Condensed Consolidated Statements of Cash
Flows (Unaudited)
|
|
|
Three Months Ended March 31,
|
|
2022
|
|
2021
|
|
(in millions)
|
OPERATING
ACTIVITIES:
|
|
|
|
Net income
(loss)
|
$
171
|
|
$
(29)
|
Adjustments to
net income (loss):
|
|
|
|
Depreciation and amortization
|
270
|
|
275
|
Loss
(gain) on disposal and sale of business interests
|
(1)
|
|
5
|
Impairment expense
|
1
|
|
473
|
Deferred
income taxes
|
(7)
|
|
21
|
Loss on
extinguishment of debt
|
6
|
|
1
|
Loss
(gain) on sale and disposal of assets
|
4
|
|
(20)
|
Loss of
affiliates, net of dividends
|
33
|
|
36
|
Emissions
allowance expense
|
118
|
|
58
|
Other
|
50
|
|
19
|
Changes in
operating assets and liabilities:
|
|
|
|
(Increase) decrease in accounts receivable
|
(77)
|
|
(79)
|
(Increase) decrease in inventory
|
(44)
|
|
14
|
(Increase) decrease in prepaid expenses and other current
assets
|
59
|
|
22
|
(Increase) decrease in other assets
|
(10)
|
|
31
|
Increase
(decrease) in accounts payable and other current
liabilities
|
(124)
|
|
(337)
|
Increase
(decrease) in income tax payables, net and other tax
payables
|
7
|
|
(92)
|
Increase
(decrease) in deferred income
|
10
|
|
(142)
|
Increase
(decrease) in other liabilities
|
(9)
|
|
(3)
|
Net cash
provided by operating activities
|
457
|
|
253
|
INVESTING
ACTIVITIES:
|
|
|
|
Capital
expenditures
|
(766)
|
|
(432)
|
Sale of
short-term investments
|
197
|
|
257
|
Purchase of
short-term investments
|
(345)
|
|
(130)
|
Contributions
and loans to equity affiliates
|
(93)
|
|
(64)
|
Purchase of
emissions allowances
|
(136)
|
|
(31)
|
Other
investing
|
(10)
|
|
13
|
Net cash used in
investing activities
|
(1,153)
|
|
(387)
|
FINANCING
ACTIVITIES:
|
|
|
|
Borrowings under
the revolving credit facilities
|
1,193
|
|
792
|
Repayments under
the revolving credit facilities
|
(715)
|
|
(793)
|
Issuance of
recourse debt
|
—
|
|
7
|
Repayments of
recourse debt
|
(29)
|
|
(7)
|
Issuance of
non-recourse debt
|
1,710
|
|
307
|
Repayments of
non-recourse debt
|
(788)
|
|
(320)
|
Payments for
financing fees
|
(27)
|
|
(5)
|
Distributions to
noncontrolling interests
|
(47)
|
|
(17)
|
Acquisitions of
noncontrolling interests
|
(535)
|
|
(13)
|
Contributions
from noncontrolling interests
|
8
|
|
94
|
Sales to
noncontrolling interests
|
48
|
|
1
|
Issuance of
preferred shares in subsidiaries
|
60
|
|
—
|
Issuance of
preferred stock
|
—
|
|
1,017
|
Dividends paid
on AES common stock
|
(105)
|
|
(100)
|
Payments for
financed capital expenditures
|
(4)
|
|
(1)
|
Other
financing
|
49
|
|
31
|
Net cash
provided by financing activities
|
818
|
|
993
|
Effect of
exchange rate changes on cash, cash equivalents and restricted
cash
|
20
|
|
(22)
|
Increase in
cash, cash equivalents and restricted cash of held-for-sale
businesses
|
(64)
|
|
(58)
|
Total increase
in cash, cash equivalents and restricted cash
|
78
|
|
779
|
Cash, cash
equivalents and restricted cash, beginning
|
1,484
|
|
1,827
|
Cash, cash
equivalents and restricted cash, ending
|
$
1,562
|
|
$
2,606
|
SUPPLEMENTAL
DISCLOSURES:
|
|
|
|
Cash payments
for interest, net of amounts capitalized
|
$
185
|
|
$
167
|
Cash payments
for income taxes, net of refunds
|
46
|
|
50
|
SCHEDULE OF NONCASH
INVESTING AND FINANCING ACTIVITIES:
|
|
|
|
Dividends
declared but not yet paid
|
105
|
|
101
|
Non-cash
consideration transferred for the Clean Energy
transaction
|
—
|
|
119
|
THE AES CORPORATION
NON-GAAP
FINANCIAL MEASURES
(Unaudited)
RECONCILIATION
OF ADJUSTED PRE-TAX CONTRIBUTION (PTC) AND ADJUSTED EPS
Adjusted PTC is defined as pre-tax income from continuing
operations attributable to The AES Corporation excluding gains or
losses of the consolidated entity due to (a) unrealized gains
or losses related to derivative transactions and equity securities;
(b) unrealized foreign currency gains or losses;
(c) gains, losses, benefits and costs associated with
dispositions and acquisitions of business interests, including
early plant closures, and gains and losses recognized at
commencement of sales-type leases; (d) losses due to
impairments; (e) gains, losses and costs due to the early
retirement of debt; and (f) net gains at Angamos, one of our
businesses in the South America SBU, associated with the early
contract terminations with Minera Escondida and Minera Spence. Adjusted PTC also includes
net equity in earnings of affiliates on an after-tax basis adjusted
for the same gains or losses excluded from consolidated
entities.
Adjusted EPS is defined as diluted earnings per share from
continuing operations excluding gains or losses of both
consolidated entities and entities accounted for under the equity
method due to (a) unrealized gains or losses related to
derivative transactions and equity securities; (b) unrealized
foreign currency gains or losses; (c) gains, losses, benefits
and costs associated with dispositions and acquisitions of business
interests, including early plant closures, and the tax impact from
the repatriation of sales proceeds, and gains and losses recognized
at commencement of sales-type leases; (d) losses due to
impairments; (e) gains, losses and costs due to the early
retirement of debt; (f) net gains at Angamos, one of our businesses
in the South America SBU, associated with the early contract
terminations with Minera Escondida and Minera Spence; and (g) tax
benefit or expense related to the enactment effects of 2017 U.S.
tax law reform and related regulations and any subsequent period
adjustments related to enactment effects, including the 2021 tax
benefit on reversal of uncertain tax positions effectively settled
upon the closure of the Company's U.S. tax return exam.
The GAAP measure most comparable to Adjusted PTC is income from
continuing operations attributable to AES. The GAAP measure most
comparable to Adjusted EPS is diluted earnings per share from
continuing operations. We believe that Adjusted PTC and Adjusted
EPS better reflect the underlying business performance of the
Company and are considered in the Company's internal evaluation of
financial performance. Factors in this determination include
the variability due to unrealized gains or losses related to
derivative transactions or equity securities remeasurement,
unrealized foreign currency gains or losses, losses due to
impairments, strategic decisions to dispose of or acquire business
interests or retire debt, and the non-recurring nature of the
impact of the early contract terminations at Angamos, which affect
results in a given period or periods. In addition, for Adjusted
PTC, earnings before tax represents the business performance of the
Company before the application of statutory income tax rates and
tax adjustments, including the effects of tax planning,
corresponding to the various jurisdictions in which the Company
operates. Adjusted PTC and Adjusted EPS should not be construed as
alternatives to income from continuing operations attributable to
AES and diluted earnings per share from continuing operations,
which are determined in accordance with GAAP.
|
Three Months
Ended
March 31, 2022
|
|
Three Months
Ended
March 31, 2021
|
|
|
Net of NCI
(1)
|
|
Per Share
(Diluted)
Net of NCI (1)
|
|
Net of NCI
(1)
|
|
Per Share
(Diluted)
Net of NCI (1)
|
|
|
(in millions, except
per share amounts)
|
|
Income (loss) from
continuing operations, net of tax, attributable to AES and Diluted
EPS
|
$
115
|
|
$
0.16
|
|
$
(148)
|
|
$ (0.22)
|
|
Add: Income tax expense
(benefit) from continuing operations attributable to AES
|
50
|
|
|
|
(36)
|
|
|
|
Pre-tax
contribution
|
$
165
|
|
|
|
$
(184)
|
|
|
|
Adjustments
|
|
|
|
|
|
|
|
|
Unrealized derivative
and equity securities losses
|
$
41
|
|
$ 0.06
|
(2)
|
$
69
|
|
$ 0.10
|
(3)
|
Unrealized foreign
currency losses (gains)
|
(19)
|
|
(0.02)
|
(4)
|
6
|
|
0.01
|
|
Disposition/acquisition
losses (gains)
|
9
|
|
0.01
|
|
(15)
|
|
(0.02)
|
(5)
|
Impairment
losses
|
1
|
|
—
|
|
475
|
|
0.71
|
(6)
|
Loss on extinguishment
of debt
|
10
|
|
0.01
|
|
6
|
|
0.01
|
|
Net gains from early
contract terminations at Angamos
|
—
|
|
—
|
|
(110)
|
|
(0.16)
|
(7)
|
Less: Net income tax
benefit
|
|
|
(0.01)
|
|
|
|
(0.15)
|
(8)
|
Adjusted PTC and
Adjusted EPS
|
$
207
|
|
$
0.21
|
|
$
247
|
|
$
0.28
|
|
|
|
|
|
|
|
|
|
|
(1)
|
NCI is defined as
Noncontrolling Interests.
|
(2)
|
Amount primarily
relates to unrealized commodity derivative losses at New York Wind
of $20 million, or $0.03 per share, and unrealized foreign currency
derivative losses in Brazil of $20 million, or $0.03 per
share.
|
(3)
|
Amount primarily
relates to unrealized derivative losses in Argentina mainly
associated with foreign currency derivatives on government
receivables of $38 million, or $0.06 per share, and net unrealized
derivative losses on power and commodities swaps at Southland of
$33 million, or $0.05 per share.
|
(4)
|
Amount primarily
relates to unrealized FX gains in Brazil of $22 million, or $0.03
per share, mainly associated with debt denominated in Brazilian
reais.
|
(5)
|
Amount primarily
relates to gain on remeasurement of our equity interest in sPower
to acquisition-date fair value of $36 million, or $0.05 per share,
partially offset by day-one loss recognized at commencement of a
sales-type lease at AES Renewable Holdings of $13 million, or $0.02
per share.
|
(6)
|
Amount primarily
relates to asset impairment at Puerto Rico of $475 million, or
$0.71 per share.
|
(7)
|
Amount relates to net
gains at Angamos associated with the early contract terminations
with Minera Escondida and Minera Spence of $110 million, or $0.16
per share.
|
(8)
|
Amount primarily
relates to income tax benefits associated with the impairment at
Puerto Rico of $119 million, or $0.18 per share, partially offset
by income tax expense related to net gains at Angamos associated
with the early contract terminations with Minera Escondida and
Minera Spence of $28 million, or $0.04 per share.
|
The AES
Corporation
|
Parent Financial
Information
|
Parent only data:
last four quarters
|
|
|
|
|
(in
millions)
|
4 Quarters
Ended
|
Total subsidiary
distributions & returns of capital to Parent
|
March 31,
2022
|
December 31,
2021
|
September 30,
2021
|
June 30,
2021
|
Actual
|
Actual
|
Actual
|
Actual
|
Subsidiary
distributions1 to Parent & QHCs
|
$
1,084
|
$
1,396
|
$
966
|
$
1,203
|
Returns of capital
distributions to Parent & QHCs
|
1
|
2
|
(118)
|
45
|
Total subsidiary
distributions & returns of capital to Parent
|
$
1,085
|
$
1,398
|
$
848
|
$
1,248
|
Parent only data:
quarterly
|
|
|
|
|
(in
millions)
|
Quarter
Ended
|
Total subsidiary
distributions & returns of capital to Parent
|
March 31,
2022
|
December 31,
2021
|
September 30,
2021
|
June 30,
2021
|
Actual
|
Actual
|
Actual
|
Actual
|
Subsidiary
distributions1 to Parent & QHCs
|
$
165
|
$
477
|
$
278
|
$
164
|
Returns of capital
distributions to Parent & QHCs
|
—
|
1
|
—
|
—
|
Total subsidiary
distributions & returns of capital to Parent
|
$
165
|
$
478
|
$
278
|
$
164
|
|
|
(in
millions)
|
Balance
at
|
|
March 31,
2022
|
December 31,
2021
|
September 30,
2021
|
June 30,
2021
|
Parent Company
Liquidity2
|
Actual
|
Actual
|
Actual
|
Actual
|
Cash at Parent &
Cash at QHCs3
|
$
17
|
$
41
|
$
338
|
$
373
|
Availability under
credit facilities
|
621
|
837
|
1,175
|
941
|
Ending
liquidity
|
$
638
|
$
878
|
$
1,513
|
$
1,314
|
|
|
|
|
|
|
|
|
|
(1)
|
Subsidiary
distributions received by Qualified Holding Companies ("QHCs")
excluded from Schedule 1. Subsidiary Distributions should not be
construed as an alternative to Consolidated Net Cash Provided by
Operating Activities, which is determined in accordance with US
GAAP. Subsidiary Distributions are important to the Parent
Company because the Parent Company is a holding company that does
not derive any significant direct revenues from its own activities
but instead relies on its subsidiaries' business activities and the
resultant distributions to fund the debt service, investment and
other cash needs of the holding company. The reconciliation of
the difference between the Subsidiary Distributions and
Consolidated Net Cash Provided by Operating Activities consists of
cash generated from operating activities that is retained at the
subsidiaries for a variety of reasons which are both discretionary
and non-discretionary in nature. These factors include, but
are not limited to, retention of cash to fund capital expenditures
at the subsidiary, cash retention associated with non-recourse debt
covenant restrictions and related debt service requirements at the
subsidiaries, retention of cash related to sufficiency of local
GAAP statutory retained earnings at the subsidiaries, retention of
cash for working capital needs at the subsidiaries, and other
similar timing differences between when the cash is generated at
the subsidiaries and when it reaches the Parent Company and related
holding companies.
|
(2)
|
Parent Company
Liquidity is defined as cash available to the Parent Company,
including cash at qualified holding companies (QHCs), plus
available borrowings under our existing credit facility. AES
believes that unconsolidated Parent Company liquidity is important
to the liquidity position of AES as a Parent Company because of the
non-recourse nature of most of AES' indebtedness.
|
(3)
|
The cash held at QHCs
represents cash sent to subsidiaries of the company domiciled
outside of the US. Such subsidiaries have no contractual
restrictions on their ability to send cash to AES, the Parent
Company. Cash at those subsidiaries was used for investment and
related activities outside of the US. These investments included
equity investments and loans to other foreign subsidiaries as well
as development and general costs and expenses incurred outside the
US. Since the cash held by these QHCs is available to the Parent,
AES uses the combined measure of subsidiary distributions to Parent
and QHCs as a useful measure of cash available to the Parent to
meet its international liquidity needs.
|
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SOURCE AES CORP.