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Dec 31, 2023
AES Q4 2023 Earnings Report
Reported record performance and raised long-term guidance.
Key Takeaways
AES reported strong financial results for 2023, exceeding strategic objectives with increased renewables construction and new PPA signings. The company is well-positioned for future growth with positive financial outlook.
Signed new contracts for 5.6 GW of renewables in full year 2023.
Completed construction of 3.5 GW of renewables in full year 2023.
Secured $1.1 billion in asset sale proceeds, exceeding target.
Backlog of signed PPAs now stands at 12.3 GW.
AES
AES
AES Revenue by Segment
Revenue by Segment
Renewables Revenue
CapyFin.comUtilities Revenue
CapyFin.comEnergy Infrastructure Revenue
CapyFin.comCorporate and Other Revenue
CapyFin.com Forward Guidance
The Company is raising its expectation for annualized growth in Adjusted EBITDA to 5% to 7% from 3% to 5% through 2027, from a base of its 2023 guidance of $2,600 to $2,900 million. The Company is initiating 2024 guidance for Adjusted EBITDA of $2,600 to $2,900 million.
Positive Outlook
- Growth in 2024 is expected to be primarily driven by new renewables commissionings.
- Rate base growth at US utilities.
- Improved margins in Chile.
- Reaffirming annualized growth target for Adjusted EPS of 7% to 9% through 2025.
- Raising annualized growth target for Adjusted EPS to 7% to 9% from 6% to 8% through 2027.
Challenges Ahead
- Impacts from significant asset sales closed in 2023 and expected to close in 2024.
- Prior year margins earned on LNG transactions.
- Company expects to grow its dividend by 2% to 3% annually after 2024.
- Foreign currency and commodity forward curves as of December 31, 2023.
- Minimize equity issuance as a source of capital.
Revenue & Expenses
Visualization of income flow from segment revenue to net income