AES Corporation
AES Reports First Quarter 2017 Financial Results; Reaffirms 2017 Guidance and Long-Term Expectations

May 9, 2017

The AES Corporation (NYSE: AES) reported financial results for the three months ended March 31, 2017. Compared with last year, these results primarily reflect higher margins at the Company's: Mexico, Central America and the Caribbean (MCAC) Strategic Business Unit (SBU), due to improved availability in Mexico; Brazil SBU, largely due to higher spot sales at Tietê; and Andes SBU, due to higher sales in Colombia. These positive contributions were partially offset by lower margins at the Company's Europe SBU, due to the restructuring of the Power Purchase Agreement (PPA) at Maritza in Bulgaria in the second quarter of 2016.

First quarter 2017 Diluted Earnings Per Share from Continuing Operations (Diluted EPS) was ($0.04), a decrease of $0.24 compared to the first quarter of 2016, reflecting higher impairment expense of $0.18, primarily due to the sale of coal-fired merchant generating assets in Kazakhstan and the planned shutdown of certain coal-fired merchant generating plants at Dayton Power & Light (DPL) in Ohio. Diluted EPS also reflects the $0.05 of losses associated with dispositions, primarily on the sale of Sul in Brazil and the announced shutdown of certain coal-fired merchant generating plants at DPL in Ohio. Adjusted Earnings Per Share (Adjusted EPS, a non-GAAP financial measure) for the first quarter of 2017 increased $0.02 to $0.17, primarily due to higher margins and a lower adjusted effective tax rate of 41% versus 47% in 2016.

Consolidated Net Cash Provided by Operating Activities for the first quarter of 2017 was $703 million, an increase of $63 million compared to the first quarter of 2016. The increase was primarily driven by higher margins, as well as lower tax payments at AES Gener and in the Dominican Republic. First quarter 2017 Consolidated Free Cash Flow (a non-GAAP financial measure) increased $56 million to $546 million compared to the first quarter of 2016, primarily due to the same drivers as Consolidated Net Cash Provided by Operating Activities.

"During the first quarter we made meaningful progress on our objectives for 2017, including restructuring our 531 MW Alto Maipo hydroelectric project in Chile, prepaying $300 million in Parent debt and reshaping our portfolio by exiting 3.7 GW of merchant coal-fired generation in Kazakhstan and Ohio," said Andrés Gluski, AES President and Chief Executive Officer. "We also received FERC approval for our acquisition of sPower and advanced our growth pipeline. To that end, we secured final permits for our 1.4 GW Southland repowering project in California and agreed to acquire 386 MW of wind generation in Brazil. Along with our 3.4 GW currently under construction and expected to come on-line through 2019, we expect these projects to be significant contributors to our future growth."

"Based on our first quarter results and our future outlook, we are reaffirming our 2017 guidance for all metrics, as well as our 8% to 10% average annual growth rate through 2020," said Tom O'Flynn, AES Executive Vice President and Chief Financial Officer. "Our strong cash flow and continued Parent debt paydown keep us on track to achieve investment grade credit statistics."

Click here to read the full press release.

For more information:

AES Corporation

4300 Wilson Blvd
Arlington, Virginia
United States, 22203
Tel: 703-522-1315

Link http://www.electricenergyonline.com/detail_news.php?ID=636654
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