Yahoo  Sep 5  Comment 
The AES Corporation (NYSE:AES), a renewable energy company based in United States, saw significant share price volatility over the past couple of months on the NYSE, rising to the highsRead More...
Motley Fool  Aug 7  Comment 
AES earnings call for the period ending June 30, 2018.
Motley Fool  Jul 2  Comment 
AES has made good money selling assets, but it's still not profitable.
Motley Fool  Jun 6  Comment 
These energy stocks are built to pay you dividends for decades to come.
Motley Fool  Jan 18  Comment 
An activist is pushing AES into more renewable energy.


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]


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]


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]



  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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