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Jun 30, 2023
AES Q2 2023 Earnings Report
AES's financial performance for Q2 2023 reflected a mix of strategic progress and financial results, with reaffirmation of 2023 guidance and annualized growth rate targets.
Key Takeaways
AES reported a Net Income loss of ($19) million and an Adjusted EPS of $0.21 for Q2 2023. The company reaffirmed its 2023 guidance for Adjusted EPS of $1.65 to $1.75 and Adjusted EBITDA of $2,600 to $2,900 million.
Signed new long-term contracts for 2.2 GW of renewables in year-to-date 2023.
On track to complete construction of 3.4 GW of renewables in 2023, with 786 MW completed in year-to-date 2023.
Filed a new rate case and for regulatory approval to build the largest energy storage facility in the state at AES Indiana.
Continued progress toward exiting coal by year-end 2025 with the retirement of 415 MW at Petersburg Unit 2 in Indiana.
Forward Guidance
The Company is reaffirming its 2023 guidance for Adjusted EBITDA of $2,600 to $2,900 million, and its expectation for annualized growth in Adjusted EBITDA of 3% to 5% through 2027, from a base of its reaffirmed 2023 guidance. Excluding the Company's Energy Infrastructure SBU, annualized growth in Adjusted EBITDA is expected to be 17% to 20% through 2027, from a base of 2023 guidance. The Company is reaffirming its 2023 guidance for Adjusted EPS of $1.65 to $1.75. Growth in 2023 is expected to be primarily driven by new renewables expected to come online.
Positive Outlook
- Reaffirming 2023 Adjusted EBITDA guidance of $2,600 to $2,900 million
- Reaffirming 2023 Adjusted EPS guidance of $1.65 to $1.75
- Anticipated Adjusted EBITDA growth of 3% to 5% through 2027
- Anticipated Adjusted EBITDA growth of 17% to 20% through 2027 excluding the Energy Infrastructure SBU
- Growth in 2023 expected to be primarily driven by new renewables coming online
Challenges Ahead
- Lower margins from the Company's LNG business due to normalization of LNG prices.
- Roll-off of a gas supply contract.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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