QUOTE AND NEWS
newratings.com  Sep 3  Comment 
WASHINGTON (dpa-AFX) - AES Corp. (AES), through one of its subsidiaries, has reached a strategic partnership with the Estrella-Linda Group, an investor group based in the Dominican Republic. As part of this agreement, Estrella-Linda would acquire...
newratings.com  Aug 20  Comment 
WASHINGTON (dpa-AFX) - The AES Corp. (AES) announced it has entered into an agreement with SYND Holdco Limited, a joint venture of Greencoat UK Wind PLC and Swiss Life Funds (Luxembourg) Global Infrastructure Opportunities S.C.A. to sell 100% of...
SeekingAlpha  Aug 7  Comment 
The AES (NYSE:AES) Q2 2014 Earnings Call August 07, 2014 9:00 am ET Executives Ahmed Pasha - Vice President of Investor Relations Andres Ricardo Gluski Weilert - Chief Executive Officer, President, Director and Chairman of Strategy &...
Reuters  Aug 1  Comment 
U.S.-based power company AES Corp plans to invest at least $1 billion to double its existing electricity generation capacity in Mexico, and also intends to enter the country's...
newratings.com  Jul 3  Comment 
WASHINGTON (dpa-AFX) - SunEdison Inc. (SUNE) said that it completed its acquisition of a 50% ownership stake in Silver Ridge Power LLC or "SRP" from a subsidiary of The AES Corp. (AES) for about $178.6 million in cash, after giving effect to...
Resource Investor  Jul 3  Comment 
StreetInsider.com  Jun 25  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Corporate+News/AES+Corp.+%28AES%29+to+Sell+Minority+Stake+in+Masin-AES+for+%24453M/9613948.html for the full story.
newratings.com  Jun 19  Comment 
AMSTERDAM (dpa-AFX) - Chicago Bridge & Iron Company N.V. (CBI) announced Thursday that it has been awarded a contract by AES Corp. (AES) subsidiary Indianapolis Power & Light Company valued at more than $500 million for the engineering,...
Benzinga  Jun 18  Comment 
In a report published Wednesday, Morgan Stanley analyst Stephen C. Byrd reiterated an Equal-Weight rating on AES (NYSE: AES), but removed the $16.00 price target. In the report, Morgan Stanley noted, “Sale of Silver Ridge stake is constructive...
StreetInsider.com  Jun 17  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Corporate+News/AES+Corporation+%28AES%29+to+Sell+Majority+of+Solar+Business+for+%24207M%3B+Expects+%2450M+Proceeds+From+Google+Investment+/9591436.html for the full story.
Motley Fool  Jun 13  Comment 
The global utility corporation offloads African assets for $202 million.




 

AES Trust (NYSE: AES) is an electric utility; by megawatts generated, AES is the ninth-largest electricity generator in Brazil and the second-largest in Chile.[1] The company also distributes electricity to about 80% of Brazil's population through its utilities operations.[2] Though AES is based in the U.S., its Latin American businesses consistently account for half the company's revenue.

Business Overview

Business & Financial Metrics[3]

In 2010, AES generated revenues of $16.6 billion. This represents a 19% increase in total revenues from 2009.

Business Segments[4]

Generation (49.3% of total revenue)

The Generation segment is responsible for running electricity generation plants powered by either coal, natural gas, water, biomass, or wind, and selling electricity to wholesale customers in 26 countries. In Latin America, the company's main source of revenue, AES generates 21% of the total electrical capacity in the state of São Paulo, Brazil making it the ninth-largest generator in Brazil.[5] AES also produces 12% of Argentina's total electricity and is the second-largest generator of power in Chile.[6] AES also owns 17 power plants in the northeastern and western U.S.[7]

Utilities (50.7% of total revenue)

The Utilities segment is responsible for transporting electricity directly to over 11 million consumers.[8] The company's Utilities operations range in structure from simple distribution systems to fully integrated utilities that generate, transmit, and distribute power. AES is part owner of Brazil's largest electricity distribution company in terms of revenue and electricity distributed, AES Electropaulo.[9] In El Salvador, AES provides electricity to over 80% of the country's population.[10] In North America, AES owns IPL, a utilities company that supplies energy to roughly 465,000 customers in Indianapolis.[11] The Utilities businesses do not face as much competition as AES' Generation segment because of the government regulation of utilities that prevents competitors from freely entering the market.[12]

Other

The Other segment consists mostly of AES' alternative energy products and services. AES's alternative energy business includes wind-powered electricity generation stations and products designed to reduce the output of greenhouse gases from fossil fuel generators.[13]

IMAGE:AES-Segments2009.jpg[4]

Key Trends and Forces

Nationalization in Latin America threatens AES' operations

On January 8, 2007, Hugo Chavez, president of Venezuela, announced a plan to nationalize Venezuela's electrical energy industry.[14] As part of Chavez's plan, AES was forced to sell its Venezuelan electric utilities company EDC to the Venezuelan government for $739 million.[15] The transaction resulted in a $680 million loss on the value of AES's assets in Venezuela.[16] Venezuela is not the only Latin American country to move toward nationalization; Bolivian president Evo Morales nationalized the country's oil and natural gas industries, even going so far as to send in troops to enforce the government's policies.[17]

Competition

References

  1. AES 2007 10-K: Business, pgs 9
  2. AES 2007 10-K: Business, pgs 9
  3. AES 2009 10-K pg. 93  
  4. 4.0 4.1 AES 2009 10-K pg. 108  
  5. AES 2007 10-K: Business, pg 7
  6. [stock:The_AES_Corporation_(AES)/Corporate%20Other | AES 2007 10-K: Business, pg 7 ]]
  7. AES 2007 10-K: Business, pg 10
  8. AES 2007 10-K: Business, pg 5
  9. AES 2007 10-K: Business, pg 5
  10. AES 2007 10-K: Business, pg 5
  11. AES 2007 10-K: Business, pg 11
  12. AES 2007 10-K: Business, pg 5
  13. AES 2007 10-K: Business, pgs 5
  14. Bureau of International Information Programs: Latin American Nationalization Trend Seen Hindering Progress
  15. AES 2007 10-K: Business, pg 5
  16. AES 2007 10-K: Risks Associated with our Operations, pg 56
  17. PBS: Bolivia Moves to Nationalize Oil and Natural Gas Industries
  18. Google Finance: CEG
  19. Google Finance: D]
  20. Google Finance: DUK]
  21. Google Finance: SRE
  22. Google Finance: EOC
  23. Google Finance: CIG
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