The AES Corporation (AES) has reported financial results, saying its revenue dropped during the quarter ended March 31, 2024.
Revenue of AES has reached $3,085 million in Q1 2024 as compared with $3.239 billion in Q1 2023.
AES has generated sales revenue of $619 million from renewables, $873 million from utilities and $1614 million from energy infrastructure during the first quarter of 2024.
AES signed 1 GW of long-term contracts for renewables with Amazon, for a total of 3.1 GW since 2021, making AES one of the largest renewables developers in Amazon’s portfolio.
Andres Gluski, AES President and Chief Executive Officer, said: “To-date, we have signed nearly 6 GW of renewables PPAs with technology customers. With our project structuring capabilities and resilient supply chain and construction programs, we continue to be best positioned to meet the needs of this and other rapidly growing market segments.”
AES has reported net income of $278 million, an increase of $89 million compared to first quarter 2023. This increase is the result of favorable contributions at the Utilities and New Energy Technologies Strategic Business Units (SBU), partially offset by lower contributions from the Renewables and Energy Infrastructure SBUs.
Adjusted EBITDA was $635 million, an increase of $7 million compared to first quarter 2023, primarily driven by higher revenues under a Power Purchase Agreement (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; 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.
At the end of first quarter of 2024, the company’s backlog, which consists of projects with signed contracts, but which are not yet operational, is 12.7 GW, including 5.8 GW under construction.
Since the company’s fourth quarter 2023 earnings call in February 2024, the company completed the construction or acquisition of 593 MW of wind, solar and energy storage and expects to add a total of 3.6 GW to its operating portfolio by year-end 2024.
Since the company’s fourth quarter 2023 earnings call in February 2024, AES signed 1.2 GW of long-term contracts for new renewables.
Including the 1 GW of Bellefield 2 signed in the first quarter of 2024, AES has signed long-term PPAs for 5.9 GW of renewables to serve data center and technology customers in the US and South America since 2018.
AES Indiana received approval from the Indiana Utility Regulatory Commission (IURC) to implement new customer rates beginning in mid-May 2024. AES Indiana will continue to be among the lowest residential rates of any investor-owned utility in Indiana.
AES is reaffirming its expectation for annualized growth in Adjusted EBITDA of 5 percent to 7 percent through 2027, from a base of its 2023 guidance of $2,600 to $2,900 million.
AES is reaffirming its 2024 guidance for Adjusted EBITDA of $2,600 to $2,900 million. Results are expected to be driven by the impacts from significant asset sales closed in 2023 and expected to close in 2024, as well as prior year margins earned on LNG transactions, partially offset by contributions from new renewables projects, improved margins in Chile, rate base growth at US utilities.