Strategic Accomplishments
Signed or awarded 1.6 GW of PPAs for new renewable energy projects in year-to-date 2022, bringing backlog to 10.5 GW
Formed the US Solar Buyer Consortium to incentivize manufacturing of up to 7 GW of solar panels in the US beginning in 2024
On track to complete 6 GW of renewable energy projects globally in 2022 and 2023
Signed agreements to redirect excess LNG from the Company's business in Panama to international customers through the end of 2022
Q2 2022 Financial Highlights
Diluted EPS of ($0.27), compared to $0.03 in Q2 2021
Adjusted EPS1 of $0.34, compared to $0.31 in Q2 2021
Financial Position and Outlook
Reaffirming 2022 Adjusted EPS1 guidance range of $1.55 to $1.65
Reaffirming 7% to 9% annualized growth target through 2025, off a base year of 2020
The AES Corporation 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 Andrιs 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
In year-to-date 2022, the Company signed or was awarded 1,618 MW of renewables and energy storage under long-term Power Purchase Agreements (PPA) expected to come online in 2023 and 2024, primarily including 1,250 MW of solar and energy storage in the US.
In the second quarter of 2022, the Company signed 531 MW of renewables and energy storage under long-term PPAs.
In year-to-date 2022, the Company completed the construction or acquisition of 390 MW of solar projects in the United States and the Dominican Republic.
The Company's backlog is now 10,468 MW expected to be completed through 2025, including:
3,792 MW under construction; and
6,676 MW of renewable energy projects signed under long-term PPAs, but not yet under construction.
In June 2022, the Company formed the US Solar Buyer consortium with three other leading solar companies to drive the expansion of the US solar supply chain and support the growth of the American solar industry.
In year-to-date 2022, the Company signed agreements that will redirect excess LNG from the Company's business in Panama to international customers.
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.
