AES Q1 2020 Earnings Report
Key Takeaways
AES reported a diluted EPS of $0.22 and an adjusted EPS of $0.29 for Q1 2020. The company reaffirmed its average annual growth target for Adjusted EPS and Parent Free Cash Flow through 2022 and expects a limited near-term impact from the COVID-19 pandemic.
Completed construction of 1.4 GW of new projects.
Signed 685 MW of new renewables under long-term PPAs, bringing backlog to 5.3 GW.
Fluence maintained global leadership in the energy storage market with 32 MW of projects awarded, bringing total backlog to 1.3 GW.
Maintained strong liquidity of $3.3 billion.
AES
AES
AES Revenue by Segment
AES Revenue by Geographic Location
Forward Guidance
AES is reducing the mid-point of its 2020 Adjusted EPS guidance by 5%, or $0.07 per share, to a range of $1.32 to $1.42 and reaffirming its 2020 Parent Free Cash Flow expectation of $725 million to $775 million.
Positive Outlook
- Reaffirming 2020 Parent Free Cash Flow expectation of $725 to $775 million.
- Reaffirming 7% to 9% average annual growth target for Adjusted EPS through 2022.
- Reaffirming 7% to 9% average annual growth target for Parent Free Cash Flow through 2022.
- Remain committed to growing dividend by 4% to 6% annually.
- Expects to comfortably exceed targeted investment grade ratio of Parent Free Cash Flow to Recourse Debt at year-end 2020
Challenges Ahead
- Reducing mid-point of 2020 Adjusted EPS guidance by 5%, or $0.07 per share.
- Lower demand across its businesses, particularly at its US utilities.
- Businesses have been negatively impacted by the COVID-19-related economic slowdown that began late in the first quarter of 2020.
- Expects demand trend to continue through the second quarter.
- Expects some improvement in the third quarter but further recovery by year-end 2020.
Revenue & Expenses
Visualization of income flow from segment revenue to net income