Le Lézard
Classified in: Oil industry, Environment, Science and technology, Business, Covid-19 virus
Subjects: ERN, ERP

AES Reaffirms 2022 Adjusted EPS Guidance; Remains on Track to Deliver on Renewables Growth


Strategic Accomplishments

Q2 2022 Financial Highlights

Financial Position and Outlook

ARLINGTON, Va., Aug. 5, 2022 /PRNewswire/ -- The AES Corporation (NYSE: AES) today reported financial results for the quarter ended June 30, 2022.

"AES' business model continues to demonstrate its resilience in today's volatile environment and we are on track to achieve our 2022 guidance," said Andrés Gluski, AES President and Chief Executive Officer. "We see strong demand for renewables and have already signed or been awarded 1.6 GW of new long-term contracts so far this year, and expect to achieve a total of 4.5 to 5.5 GW in 2022. Furthermore, we do not expect any material delays on 5.9 GW of backlog projects in the US as a result of supply chain issues. With expected growth of more than 75% in our installed renewable capacity over the next four years, AES is well on its way to becoming a majority carbon free and majority US company by 2025."

"All of our financial metrics continued to improve in the second quarter and we were able to further lengthen the tenor of some of our subsidiaries' debt at very attractive rates. Collections and days sales outstanding at our businesses remain strong, reflecting our predominantly investment grade rated customer base," said Stephen Coughlin, AES Executive Vice President and Chief Financial Officer. "With our results year-to-date and positive expectations for the remainder of the year, we are well-positioned to achieve our 7% to 9% average annual growth through 2025."

Q2 2022 Financial Results

Second quarter 2022 Diluted Earnings Per Share from Continuing Operations (Diluted EPS) was ($0.27), a decrease of $0.30 compared to second quarter 2021, primarily reflecting gains in 2021. These gains included the remeasurement of the Company's interest in sPower's development platform, the issuance of new shares by Fluence, and early contract terminations at Angamos. These impacts were partially offset by lower impairments in the second quarter of 2022.

Second quarter 2022 Adjusted Earnings Per Share1 (Adjusted EPS, a non-GAAP financial measure) was $0.34, an increase of $0.03, or 10%, compared to second quarter 2021, primarily reflecting a lower adjusted tax rate and higher contributions from the Company's South America Strategic Business Unit (SBU) due to increased ownership in AES Andes. These positive drivers were partially offset by lower contributions from the Company's US and Utilities SBU due to impacts of outages and timing of renewables projects coming online.

Strategic Accomplishments

Guidance and Expectations1

The Company is reaffirming its 2022 Adjusted EPS1 guidance of $1.55 to $1.65 and its 7% to 9% annualized growth rate target through 2025, from a base year of 2020.

1

Adjusted EPS is a non-GAAP financial measure. See attached "Non-GAAP Measures" for definition of Adjusted EPS
and a description of the adjustments to reconcile Adjusted EPS to Diluted EPS for the quarter ended June 30, 2022.
The Company is not able to provide a corresponding GAAP equivalent or reconciliation for its Adjusted EPS guidance
without unreasonable effort.

 

 

Non-GAAP Financial Measures

See Non-GAAP Measures for definitions of Adjusted Earnings Per Share and Adjusted Pre-Tax Contribution, as well as reconciliations to the most comparable GAAP financial measures.

Attachments

Condensed Consolidated Statements of Operations, Segment Information, Condensed Consolidated Balance Sheets, Condensed Consolidated Statements of Cash Flows, Non-GAAP Financial Measures and Parent Financial Information.

Conference Call Information

AES will host a conference call on Friday, August 5, 2022 at 10:00 a.m. Eastern Time (ET). Interested parties may listen to the teleconference by dialing 1-844-200-6205 at least ten minutes before the start of the call. International callers should dial +1-929-526-1599.  The Participant Access Code for this call is 780498. Internet access to the conference call and presentation materials will be available on the AES website at www.aes.com by selecting "Investors" and then "Presentations and Webcasts."

A webcast replay, as well as a replay in downloadable MP3 format, will be accessible at www.aes.com beginning shortly after the completion of the call.

About AES

The AES Corporation (NYSE: AES) is a Fortune 500 global power company accelerating the future of energy. Together with our many stakeholders, we're improving lives by delivering the greener, smarter energy solutions the world needs. Our diverse workforce is committed to continuous innovation and operational excellence, while partnering with our customers on their strategic energy transitions and continuing to meet their energy needs today. For more information, visit www.aes.com.

Safe Harbor Disclosure

This news release contains forward-looking statements within the meaning of the Securities Act of 1933 and of the Securities Exchange Act of 1934. Such forward-looking statements include, but are not limited to, those related to future earnings, growth and financial and operating performance. Forward-looking statements are not intended to be a guarantee of future results, but instead constitute AES' current expectations based on reasonable assumptions. Forecasted financial information is based on certain material assumptions. These assumptions include, but are not limited to, our expectations regarding accurate projections of future interest rates, commodity price and foreign currency pricing, continued normal levels of operating performance and electricity volume at our distribution companies and operational performance at our generation businesses consistent with historical levels, as well as the execution of PPAs, conversion of our backlog and growth investments at normalized investment levels, rates of return consistent with prior experience and the COVID-19 pandemic.

Actual results could differ materially from those projected in our forward-looking statements due to risks, uncertainties and other factors. Important factors that could affect actual results are discussed in AES' filings with the Securities and Exchange Commission (the "SEC"), including, but not limited to, the risks discussed under Item 1A: "Risk Factors" and Item 7: "Management's Discussion & Analysis" in AES' Annual Report on Form 10-K and in subsequent reports filed with the SEC. Readers are encouraged to read AES' filings to learn more about the risk factors associated with AES' business. AES undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except where required by law.

Any Stockholder who desires a copy of the Company's 2021 Annual Report on Form 10-K filed February 28, 2022 with the SEC may obtain a copy (excluding the exhibits thereto) without charge by addressing a request to the Office of the Corporate Secretary, The AES Corporation, 4300 Wilson Boulevard, Arlington, Virginia 22203. Exhibits also may be requested, but a charge equal to the reproduction cost thereof will be made. A copy of the Annual Report on Form 10-K may be obtained by visiting the Company's website at www.aes.com.

Website Disclosure

AES uses its website, including its quarterly updates, as channels of distribution of Company information. The information AES posts through these channels may be deemed material. Accordingly, investors should monitor our website, in addition to following AES' press releases, quarterly SEC filings and public conference calls and webcasts. In addition, you may automatically receive e-mail alerts and other information about AES when you enroll your e-mail address by visiting the "Subscribe to Alerts" page of AES' Investors website. The contents of AES' website, including its quarterly updates, are not, however, incorporated by reference into this release.

 

THE AES CORPORATION

Condensed Consolidated Statements of Operations (Unaudited)



Three Months Ended June 30,


Six Months Ended June 30,


2022


2021


2022


2021


(in millions, except per share amounts)

Revenue:








Regulated

$              802


$         672


$           1,637


$           1,379

Non-Regulated

2,276


2,028


4,293


3,956

Total revenue

3,078


2,700


5,930


5,335

Cost of Sales:








Regulated

(734)


(580)


(1,439)


(1,162)

Non-Regulated

(1,781)


(1,392)


(3,398)


(2,781)

Total cost of sales

(2,515)


(1,972)


(4,837)


(3,943)

Operating margin

563


728


1,093


1,392

General and administrative expenses

(46)


(45)


(98)


(91)

Interest expense

(279)


(237)


(537)


(427)

Interest income

95


73


170


141

Loss on extinguishment of debt

(1)


(18)


(7)


(19)

Other expense

(29)


(4)


(41)


(20)

Other income

70


183


76


226

Gain (loss) on disposal and sale of business interests

(2)


64


(1)


59

Asset impairment expense

(482)


(872)


(483)


(1,345)

Foreign currency transaction losses

(49)


(2)


(68)


(37)

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE TAXES
AND EQUITY IN EARNINGS OF AFFILIATES

(160)


(130)


104


(121)

Income tax benefit (expense)

19


59


(41)


51

Net equity in earnings (losses) of affiliates

5


(10)


(28)


(40)

INCOME (LOSS) FROM CONTINUING OPERATIONS

(136)


(81)


35


(110)

Gain from disposal of discontinued businesses

?


4


?


4

NET INCOME (LOSS)

(136)


(77)


35


(106)

Less: Net loss (income) attributable to noncontrolling interests and
redeemable stock of subsidiaries

(43)


105


(99)


(14)

NET INCOME (LOSS) ATTRIBUTABLE TO THE AES CORPORATION

$             (179)


$           28


$               (64)


$             (120)

AMOUNTS ATTRIBUTABLE TO THE AES CORPORATION COMMON
STOCKHOLDERS:








Income (loss) from continuing operations, net of tax

$             (179)


$           24


$               (64)


$             (124)

Income from discontinued operations, net of tax

?


4


?


4

NET INCOME (LOSS) ATTRIBUTABLE TO THE AES CORPORATION

$             (179)


$           28


$               (64)


$             (120)

BASIC EARNINGS PER SHARE:








Income (loss) from continuing operations attributable to The AES
Corporation common stockholders, net of tax

$            (0.27)


$        0.03


$            (0.10)


$            (0.19)

Income from discontinued operations attributable to The AES Corporation
common stockholders, net of tax

?


0.01


?


0.01

NET INCOME (LOSS) ATTRIBUTABLE TO THE AES CORPORATION
COMMON STOCKHOLDERS

$            (0.27)


$        0.04


$            (0.10)


$            (0.18)

DILUTED EARNINGS PER SHARE:








Income (loss) from continuing operations attributable to The AES
Corporation common stockholders, net of tax

$            (0.27)


$        0.03


$            (0.10)


$            (0.19)

Income from discontinued operations attributable to The AES Corporation
common stockholders, net of tax

?


0.01


?


0.01

NET INCOME (LOSS) ATTRIBUTABLE TO THE AES CORPORATION
COMMON STOCKHOLDERS

$            (0.27)


$        0.04


$            (0.10)


$            (0.18)

DILUTED SHARES OUTSTANDING

668


671


668


666

 

 

THE AES CORPORATION

Strategic Business Unit (SBU) Information

(Unaudited)










Three Months Ended June 30,


Six Months Ended June 30,

(in millions)

2022


2021


2022


2021

REVENUE








US and Utilities SBU

$               1,197


$                  972


$               2,314


$               1,921

South America SBU

880


964


1,690


1,848

MCAC SBU

686


490


1,252


1,025

Eurasia SBU

318


277


686


547

Corporate and Other

36


37


59


61

Eliminations

(39)


(40)


(71)


(67)

Total Revenue

$               3,078


$               2,700


$               5,930


$               5,335

 

 

THE AES CORPORATION

Condensed Consolidated Balance Sheets (Unaudited)



June 30, 2022


December 31,
2021


(in millions, except share

and per share data)

ASSETS




CURRENT ASSETS




Cash and cash equivalents

$                 1,075


$                    943

Restricted cash

412


304

Short-term investments

595


232

Accounts receivable, net of allowance for doubtful accounts of $5 and $5, respectively

1,675


1,418

Inventory

871


604

Prepaid expenses

182


142

Other current assets

1,269


897

Current held-for-sale assets

844


816

Total current assets

6,923


5,356

NONCURRENT ASSETS




Property, Plant and Equipment:




Land

433


426

Electric generation, distribution assets and other

25,351


25,552

Accumulated depreciation

(8,387)


(8,486)

Construction in progress

3,356


2,414

Property, plant and equipment, net

20,753


19,906

Other Assets:




Investments in and advances to affiliates

1,098


1,080

Debt service reserves and other deposits

164


237

Goodwill

1,179


1,177

Other intangible assets, net of accumulated amortization of $402 and $385, respectively

1,646


1,450

Deferred income taxes

395


409

Other noncurrent assets, net of allowance of $42 and $23, respectively

2,775


2,188

Noncurrent held-for-sale assets

1,137


1,160

Total other assets

8,394


7,701

TOTAL ASSETS

$               36,070


$               32,963

LIABILITIES AND EQUITY




CURRENT LIABILITIES




Accounts payable

$                 1,685


$                 1,153

Accrued interest

214


182

Accrued non-income taxes

242


266

Accrued and other liabilities

1,099


1,205

Non-recourse debt, including $353 and $302, respectively, related to variable interest entities

2,202


1,367

Current held-for-sale liabilities

547


559

Total current liabilities

5,989


4,732

NONCURRENT LIABILITIES




Recourse debt

4,177


3,729

Non-recourse debt, including $2,142 and $2,223, respectively, related to variable interest entities

14,997


13,603

Deferred income taxes

1,086


977

Other noncurrent liabilities

3,117


3,358

Noncurrent held-for-sale liabilities

678


740

Total noncurrent liabilities

24,055


22,407

Commitments and Contingencies




Redeemable stock of subsidiaries

1,173


1,257

EQUITY




THE AES CORPORATION STOCKHOLDERS' EQUITY




Preferred stock (without par value, 50,000,000 shares authorized; 1,043,500 issued and
outstanding at June 30, 2022 and December 31, 2021, respectively)

838


838

Common stock ($0.01 par value, 1,200,000,000 shares authorized; 818,735,314 issued and
667,878,925 outstanding at June 30, 2022 and 818,717,043 issued and 666,793,625 outstanding
at December 31, 2021)

8


8

Additional paid-in capital

6,924


7,106

Accumulated deficit

(1,153)


(1,089)

Accumulated other comprehensive loss

(1,790)


(2,220)

Treasury stock, at cost (150,856,389 and 151,923,418 shares at June 30, 2022 and December
31, 2021, respectively)

(1,832)


(1,845)

Total AES Corporation stockholders' equity

2,995


2,798

NONCONTROLLING INTERESTS

1,858


1,769

Total equity

4,853


4,567

TOTAL LIABILITIES AND EQUITY

$               36,070


$               32,963

 

 

THE AES CORPORATION

Condensed Consolidated Statements of Cash Flows

(Unaudited)



Three Months Ended June 30,


Six Months Ended June 30,


2022


2021


2022


2021


(in millions)


(in millions)

OPERATING ACTIVITIES:








Net income (loss)

$           (136)


$             (77)


$              35


$           (106)

Adjustments to net income (loss):








Depreciation and amortization

264


263


534


538

Loss (gain) on disposal and sale of business interests

2


(64)


1


(59)

Impairment expense

482


872


483


1,345

Deferred income taxes

(36)


(94)


(43)


(73)

Loss on extinguishment of debt

1


18


7


19

Loss on sale and disposal of assets

(2)


40


2


20

Gain on remeasurement to acquisition date fair value

?


(176)


?


(212)

Loss of affiliates, net of dividends

19


10


52


46

Emissions allowance expense

121


66


239


124

Other

(4)


84


46


139

Changes in operating assets and liabilities:








(Increase) decrease in accounts receivable

(185)


(41)


(262)


(120)

(Increase) decrease in inventory

(183)


(7)


(227)


7

(Increase) decrease in prepaid expenses and other current assets

(246)


(35)


(187)


(13)

(Increase) decrease in other assets

104


(23)


94


8

Increase (decrease) in accounts payable and other current liabilities

275


45


151


(292)

Increase (decrease) in income tax payables, net and other tax payables

(121)


(347)


(114)


(439)

Increase (decrease) in deferred income

49


(165)


59


(307)

Increase (decrease) in other liabilities

4


(18)


(5)


(21)

Net cash provided by operating activities

408


351


865


604

INVESTING ACTIVITIES:








Capital expenditures

(893)


(567)


(1,659)


(999)

Acquisitions of business interests, net of cash and restricted cash acquired

(107)


(81)


(107)


(81)

Proceeds from the sale of business interests, net of cash and restricted cash sold

1


58


1


58

Sale of short-term investments

148


59


345


316

Purchase of short-term investments

(349)


(128)


(694)


(258)

Contributions and loans to equity affiliates

(76)


(109)


(169)


(173)

Purchase of emissions allowances

(157)


(57)


(293)


(88)

Other investing

3


67


(7)


80

Net cash used in investing activities

(1,430)


(758)


(2,583)


(1,145)

FINANCING ACTIVITIES:








Borrowings under the revolving credit facilities

1,907


206


3,100


998

Repayments under the revolving credit facilities

(1,554)


(139)


(2,269)


(932)

Issuance of recourse debt

?


?


?


7

Repayments of recourse debt

?


?


(29)


(7)

Issuance of non-recourse debt

1,422


393


3,132


700

Repayments of non-recourse debt

(681)


(619)


(1,469)


(939)

Payments for financing fees

(11)


(7)


(38)


(12)

Distributions to noncontrolling interests

(46)


(112)


(93)


(129)

Acquisitions of noncontrolling interests

(5)


(4)


(540)


(17)

Contributions from noncontrolling interests

20


1


28


95

Sales to noncontrolling interests

181


19


229


20

Issuance of preferred shares in subsidiaries

?


151


60


151

Issuance of preferred stock

?


(2)


?


1,015

Dividends paid on AES common stock

(106)


(100)


(211)


(200)

Payments for financed capital expenditures

(5)


(3)


(9)


(4)

Other financing

(16)


(95)


33


(64)

Net cash provided by financing activities

1,106


(311)


1,924


682

Effect of exchange rate changes on cash, cash equivalents and restricted cash

(38)


18


(18)


(4)

(Increase) decrease in cash, cash equivalents and restricted cash of held-for-sale
businesses

43


120


(21)


62

Total increase in cash, cash equivalents and restricted cash

89


(580)


167


199

Cash, cash equivalents and restricted cash, beginning

1,562


2,606


1,484


1,827

Cash, cash equivalents and restricted cash, ending

$         1,651


$         2,026


$         1,651


$         2,026

SUPPLEMENTAL DISCLOSURES:








Cash payments for interest, net of amounts capitalized

$            238


$            239


$            423


$            406

Cash payments for income taxes, net of refunds

95


322


141


372

SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES:








Non-cash consideration transferred for Clean Energy acquisitions

?


(20)


?


99

 

THE AES CORPORATION 
NON-GAAP FINANCIAL MEASURES
(Unaudited)
RECONCILIATION OF ADJUSTED PRE-TAX CONTRIBUTION (PTC) AND ADJUSTED EPS

Adjusted PTC is defined as pre-tax income from continuing operations attributable to The AES Corporation excluding gains or losses of the consolidated entity due to (a) unrealized gains or losses related to derivative transactions and equity securities; (b) unrealized foreign currency gains or losses; (c) gains, losses, benefits and costs associated with dispositions and acquisitions of business interests, including early plant closures, and gains and losses recognized at commencement of sales-type leases; (d) losses due to impairments; (e) gains, losses and costs due to the early retirement of debt; and (f) net gains at Angamos, one of our businesses in the South America SBU, associated with the early contract terminations with Minera Escondida and Minera Spence. Adjusted PTC also includes net equity in earnings of affiliates on an after-tax basis adjusted for the same gains or losses excluded from consolidated entities.

Adjusted EPS is defined as diluted earnings per share from continuing operations excluding gains or losses of both consolidated entities and entities accounted for under the equity method due to (a) unrealized gains or losses related to derivative transactions and equity securities; (b) unrealized foreign currency gains or losses; (c) gains, losses, benefits and costs associated with dispositions and acquisitions of business interests, including early plant closures, and the tax impact from the repatriation of sales proceeds, and gains and losses recognized at commencement of sales-type leases; (d) losses due to impairments; (e) gains, losses and costs due to the early retirement of debt; (f) net gains at Angamos, one of our businesses in the South America SBU, associated with the early contract terminations with Minera Escondida and Minera Spence; and (g) tax benefit or expense related to the enactment effects of 2017 U.S. tax law reform and related regulations and any subsequent period adjustments related to enactment effects, including the 2021 tax benefit on reversal of uncertain tax positions effectively settled upon the closure of the Company's U.S. tax return exam.

The GAAP measure most comparable to Adjusted PTC is income from continuing operations attributable to AES. The GAAP measure most comparable to Adjusted EPS is diluted earnings per share from continuing operations. We believe that Adjusted PTC and Adjusted EPS better reflect the underlying business performance of the Company and are considered in the Company's internal evaluation of financial performance. Factors in this determination include the variability due to unrealized gains or losses related to derivative transactions or equity securities remeasurement, unrealized foreign currency gains or losses, losses due to impairments, strategic decisions to dispose of or acquire business interests or retire debt, and the non-recurring nature of the impact of the early contract terminations at Angamos, which affect results in a given period or periods. In addition, for Adjusted PTC, earnings before tax represents the business performance of the Company before the application of statutory income tax rates and tax adjustments, including the effects of tax planning, corresponding to the various jurisdictions in which the Company operates. Adjusted PTC and Adjusted EPS should not be construed as alternatives to income from continuing operations attributable to AES and diluted earnings per share from continuing operations, which are determined in accordance with GAAP.

Reconciliation of GAAP to Non-GAAP Diluted Loss per Share

Three Months Ended June 30,


Six Months Ended June 30,


2022


2021


2022


2021

GAAP Diluted Loss per Share from Continuing Operations

$               (0.27)


$                0.03


$               (0.10)


$               (0.19)

Effect of Dilutive Securities








Equity units

0.02


?


0.01


?

NON-GAAP DILUTED LOSS PER SHARE

$               (0.25)


$                0.03


$               (0.09)


$               (0.19)

 


Three Months Ended
June 30, 2022


Three Months Ended
June 30, 2021


Six Months Ended
June 30, 2022


Six Months Ended
June 30, 2021



Net of NCI
(1)


Per Share
(Diluted)
Net of NCI
(1)


Net of NCI
(1)


Per Share
(Diluted)
Net of NCI
(1)


Net of NCI
(1)


Per Share
(Diluted)
Net of NCI
(1)


Net of NCI
(1)


Per Share
(Diluted)
Net of NCI
(1)



(in millions, except per share amounts)


Income (loss) from continuing
operations, net of tax, attributable to
AES and Diluted EPS

$    (179)


$   (0.25)


$       24


$    0.03


$      (64)


$    (0.09)


$     (124)


$    (0.19)


Add: Income tax expense (benefit) from
continuing operations attributable to AES

(29)




(24)




21




(60)




Pre-tax contribution

$    (208)




$        ?




$      (43)




$     (184)




Adjustments

















Unrealized derivative and equity
securities losses

$      (35)


$   (0.05)

(2)

$         8


$    0.01


$         6


$     0.01


$        77


$     0.12

(3)

Unrealized foreign currency losses
(gains)

39


0.05

(4)

(12)


(0.02)


20


0.03


(6)


(0.01)


Disposition/acquisition losses (gains)

23


0.03

(5)

(229)


(0.34)

(6)

32


0.04

(5)

(244)


(0.37)

(7)

Impairment losses

479


0.68

(8)

628


0.94

(9)

480


0.68

(8)

1,103


1.65

(10)

Loss on extinguishment of debt

6


0.01


18


0.03

(11)

16


0.02


24


0.04

(11)

Net gains from early contract
terminations at Angamos

?


?


(110)


(0.16)

(12)

?


?


(220)


(0.33)

(12)

Less: Net income tax benefit



(0.13)

(13)



(0.18)

(14)



(0.14)

(13)



(0.32)

(15)

Adjusted PTC and Adjusted EPS

$     304


$    0.34


$     303


$    0.31


$     511


$     0.55


$      550


$     0.59


_____________________________

(1)

NCI is defined as Noncontrolling Interests.

(2)

Amount primarily relates to the unrealized gain on remeasurement of our existing investment in 5B, accounted for using the measurement alternative, of $26 million,
or $0.04 per share.

(3)

Amount primarily relates to unrealized derivative losses in Argentina mainly associated with foreign currency derivatives on government receivables of $41
million, or $0.06 per share, and net unrealized derivative losses on power and commodities swaps at Southland of $32 million, or $0.05 per share. 

(4)

Amount primarily relates to unrealized FX losses in Brazil of $12 million, or $0.02 per share, mainly associated with debt denominated in Brazilian reais, and
unrealized FX losses of $9 million, or $0.01 per share, mainly associated with the devaluation of long-term receivables denominated in Argentine pesos. 

(5)

Amount primarily relates to the recognition of an allowance on the AES Gilbert sales-type lease receivable as a cost of disposition of a business interest of $20
million, or $0.03 per share, for the three and six months ended June 30, 2022.

(6)

Amount primarily relates to an adjustment on the gain on remeasurement of our equity interest in sPower to acquisition-date fair value of $176 million, or $0.26,
and gain on Fluence issuance of shares of $61 million, or $0.09 per share.

(7)

Amount primarily relates to the gain on remeasurement of our equity interest in sPower to acquisition-date fair value of $212 million, or $0.32, and gain on
Fluence issuance of shares of $61 million, or $0.09 per share, partially offset by day-one loss recognized at commencement of a sales-type lease at AES
Renewable Holdings of $13 million, or $0.02 per share.

(8)

Amount primarily relates to asset impairment at Maritza of $475 million, or $0.67 per share, for the three and six months ended June 30, 2022.

(9)

Amount primarily relates to asset impairments at AES Andes of $540 million, or $0.81 per share, at Mountain View of $67 million, or $0.10 per share, and at
sPower of $20 million, or $0.03 per share.

(10)

Amount primarily relates to asset impairments at AES Andes of $540 million, or $0.81 per share, at Puerto Rico of $475 million, or $0.71 per share, at Mountain
View of $67 million, or $0.10 per share, and at sPower of $21 million, or $0.03 per share.

(11)

Amount primarily relates to loss on early retirement of debt at Andres and Los Mina of $15 million, or $0.02 per share, for the three and six months ended June
30, 2021. 

(12)

Amount relates to net gains at Angamos associated with the early contract terminations with Minera Escondida and Minera Spence of $110 million, or $0.16 per
share and $220 million, or $0.33 per share, for the three and six months ended June 30, 2021, respectively.

(13)

Amount primarily relates to income tax benefits associated with the impairment at Maritza of $110 million, or $0.15 per share, partially offset by income tax
expense associated with the unrealized gain on remeasurement of our existing investment in 5B of $6 million, or $0.01 per share for the three and six months
ended June 30, 2022.

(14)

Amount primarily relates to income tax benefits associated with the impairments at AES Andes of $195 million, or $0.29 per share and at Mountain View of $21
million, or $0.03 per share, partially offset by income tax expense related to net gains at Angamos associated with the early contract terminations with Minera
Escondida and Minera Spence of $51 million, or $0.08 per share, income tax expense related to the gain on remeasurement of our equity interest in sPower to
acquisition-date fair value of $39 million, or $0.06 per share, and income tax expense related to the gain on Fluence issuance of shares of $13 million, or $0.02
per share.

(15)

Amount primarily relates to income tax benefits associated with the impairments at AES Andes of $195 million, or $0.29 per share, at at Puerto Rico of $114
million, or $0.17 per share, and at Mountain View of $21 million, or $0.03 per share, partially offset by income tax expense related to net gains at Angamos
associated with the early contract terminations with Minera Escondida and Minera Spence of $79 million, or $0.12 per share, income tax expense related to the
gain on remeasurement of our equity interest in sPower to acquisition-date fair value of $46 million, or $0.07 per share, and income tax expense related to the
gain on Fluence issuance of shares of $13 million, or $0.02 per share.

 

 

The AES Corporation

Parent Financial Information






Parent only data: last four quarters





(in millions)

4 Quarters Ended

Total subsidiary distributions & returns of capital to Parent

June 30, 2022

March 31,
2022

December 31,
2021

September
30, 2021


Actual

Actual

Actual

Actual

Subsidiary distributions1 to Parent & QHCs

$             1,231

$             1,084

$             1,396

$               966

Returns of capital distributions to Parent & QHCs

1

1

2

(118)

Total subsidiary distributions & returns of capital to Parent

$             1,232

$             1,085

$             1,398

$               848

Parent only data: quarterly





(in millions)

Quarter Ended

Total subsidiary distributions & returns of capital to Parent

June 30, 2022

March 31,
2022

December 31,
2021

September
30, 2021


Actual

Actual

Actual

Actual

Subsidiary distributions1 to Parent & QHCs

$                311

$                165

$                477

$               278

Returns of capital distributions to Parent & QHCs

?

?

1

?

Total subsidiary distributions & returns of capital to Parent

$                311

$                165

$                478

$               278



(in millions)

Balance at


June 30, 2022

March 31,
2022

December 31,
2021

September
30, 2021

Parent Company Liquidity2

Actual

Actual

Actual

Actual

Cash at Parent & Cash at QHCs3

$                  29

$                  17

$                  41

$               338

Availability under credit facilities

414

621

837

1,175

Ending liquidity

$                443

$                638

$                878

$            1,513

 

____________________________

(1)

Subsidiary distributions received by Qualified Holding Companies ("QHCs") excluded from Schedule 1. Subsidiary Distributions should not be 
construed as an alternative to Consolidated Net Cash Provided by Operating Activities, which is determined in accordance with US
GAAP. Subsidiary Distributions are important to the Parent Company because the Parent Company is a holding company that does not derive
any significant direct revenues from its own activities but instead relies on its subsidiaries' business activities and the resultant distributions to
fund the debt service, investment and other cash needs of the holding company. The reconciliation of the difference between the Subsidiary
Distributions and Consolidated Net Cash Provided by Operating Activities consists of cash generated from operating activities that is retained at
the subsidiaries for a variety of reasons which are both discretionary and non-discretionary in nature. These factors include, but are not limited
to, retention of cash to fund capital expenditures at the subsidiary, cash retention associated with non-recourse debt covenant restrictions and
related debt service requirements at the subsidiaries, retention of cash related to sufficiency of local GAAP statutory retained earnings at the
subsidiaries, retention of cash for working capital needs at the subsidiaries, and other similar timing differences between when the cash is
generated at the subsidiaries and when it reaches the Parent Company and related holding companies.

(2) 

Parent Company Liquidity is defined as cash available to the Parent Company, including cash at qualified holding companies (QHCs), plus
available borrowings under our existing credit facility. AES believes that unconsolidated Parent Company liquidity is important to the liquidity
position of AES as a Parent Company because of the non-recourse nature of most of AES' indebtedness.

(3)

The cash held at QHCs represents cash sent to subsidiaries of the company domiciled outside of the US. Such subsidiaries have no contractual
restrictions on their ability to send cash to AES, the Parent Company. Cash at those subsidiaries was used for investment and related activities
outside of the US. These investments included equity investments and loans to other foreign subsidiaries as well as development and general
costs and expenses incurred outside the US. Since the cash held by these QHCs is available to the Parent, AES uses the combined measure
of subsidiary distributions to Parent and QHCs as a useful measure of cash available to the Parent to meet its international liquidity needs.

 

SOURCE AES CORP.


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