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Dec 31, 2019

AES Q4 2019 Earnings Report

AES achieved its strategic and financial goals by accelerating a greener energy future

Key Takeaways

AES reported its Q4 2019 financial results, showing a total revenue of $2,431 million and a net loss attributable to AES of $78 million. The company achieved its strategic and financial goals for 2019 and is accelerating its decarbonization goals.

Upgraded to an investment grade credit rating by Fitch.

Signed 2.8 GW of new PPAs for renewables in 2019, bringing backlog to 6.1 GW.

Maintained global leadership in energy storage, with Fluence reaching 1.1 GW of projects delivered or awarded in 2019.

Announced a target to reduce coal-fired generation to below 30% by year-end 2020 and to less than 10% by year-end 2030.

Total Revenue
$2.43B
Previous year: $2.62B
-7.3%
EPS
$0.35
Previous year: $0.36
-2.8%
Signed Renewables PPAs
2.8
Energy Storage Projects
1.1
Gross Profit
$560M
Previous year: $644M
-13.0%
Cash and Equivalents
$1.03B
Previous year: $1.17B
-11.7%
Free Cash Flow
-$86M
Previous year: $133M
-164.7%
Total Assets
$33.6B
Previous year: $32.5B
+3.5%

AES

AES

AES Revenue by Segment

AES Revenue by Geographic Location

Forward Guidance

The Company is initiating 2020 guidance for Adjusted EPS of $1.40 to $1.48, compared to 2019 Adjusted EPS of $1.36. The Company also expects 2020 Parent Free Cash Flow of $725 to $775 million, compared to 2019 Parent Free Cash Flow of $726 million. The Company is also reaffirming its average annual growth rate target of 7% to 9% through 2022 for both Adjusted EPS and Parent Free Cash Flow, from a 2018 base.

Positive Outlook

  • Adjusted EPS guidance of $1.40 to $1.48 for 2020.
  • Parent Free Cash Flow expectation of $725 to $775 million for 2020.
  • Reaffirming average annual growth rate target of 7% to 9% through 2022 for Adjusted EPS.
  • Reaffirming average annual growth rate target of 7% to 9% through 2022 for Parent Free Cash Flow.
  • Based on foreign currency and commodity forward curves as of December 31, 2019.

Revenue & Expenses

Visualization of income flow from segment revenue to net income