Sector: Utilities|Industry: Utilities - Diversified|Market Cap: $9.25B|Employees: 10K
The AES Corporation, together with its subsidiaries, operates as a diversified power generation and utility company in the United States and internationally. The company owns and/or operates power plants to generate and sell power to customers, such as utilities, industrial users, and other intermediaries; owns and/or operates utilities to generate or purchase, distribute, transmit, and sell electricity to end-user customers in the residential, commercial, industrial, and governmental sectors; and generates and sells electricity on the wholesale market. It uses various fuels and technologies to generate electricity, such as coal, gas, hydro, wind, solar, and biomass, as well as renewables comprising energy storage and landfill gas. The company owns and/or operates a generation portfolio of approximately 34,596 megawatts and distributes power to 2.6 million customers. The company was formerly known as Applied Energy Services, Inc. and changed its name to The AES Corporation in April 2000. The AES Corporation was incorporated in 1981 and is headquartered in Arlington, Virginia.
Net income increased by $89 million YoY, from $189 million to $278 million, primarily due to favorable contributions from the Utilities and New Energy Technologies SBUs. However, this was partially offset by lower contributions from the Renewables and Energy Infrastructure SBUs.
Adjusted EBITDA increased by $7 million YoY, from $628 million to $635 million, driven by higher revenues under a PPA termination agreement at the Energy Infrastructure SBU, higher contributions at the Utilities SBU, and lower losses from affiliates at the New Energy Technologies SBU. These gains were partially offset by lower LNG transactions, higher contract generation cost, and outages at the Energy Infrastructure SBU, and worse hydrology and lower wind generation at the Renewables SBU.
Revenue decreased by $154 million YoY, or 5%, primarily due to lower regulated contract sales and prices at Energy Infrastructure, the impact of the depreciation of the Argentine peso, and lower generation due to higher outages. Also, the sale of the Fallbrook project in the prior year impacted New Energy Technologies.