QUOTE AND NEWS
Forbes  Jun 16  Comment 
Looking at the sectors faring best as of midday Thursday, shares of Utilities companies are outperforming other sectors, up 0.6%. Within that group, Duke Energy Corp (NYSE: DUK) and AES Corp. (NYSE: AES) are two large stocks leading the way,...
Reuters  Jun 16  Comment 
CPFL Energia SA, the largest private Brazilian utility, has agreed to buy a power distributor owned by AES Corp in southern Brazil for 1.7 billion reais ($486 million),...
Benzinga  May 11  Comment 
The AES Corporation (NYSE: AES) revealed Wednesday it plans to come out with an offering of $500 million aggregate principal amount of Senior Notes due 2026. According to the company, it plans to use the net proceeds from the offering of the...
Benzinga  Apr 27  Comment 
AES Corp (NYSE: AES) revealed that one of its subsidiaries, AES 3C Maritza East I (Maritza) in Bulgaria, received $350 million as outstanding receivables from NEK, the state-owned wholesale power company. According to the company, the payment was...
newratings.com  Apr 11  Comment 
WASHINGTON (dpa-AFX) - AES Corp. (AES) Wednesday announced that one of its subsidiaries, AES 3C Maritza East I in Bulgaria, has received 309 million euros or $350 million in outstanding receivables from NEK, the state-owned wholesale power...
Forbes  Mar 24  Comment 
Looking at the sectors faring best as of midday Thursday, shares of Utilities companies are outperforming other sectors, up 0.3%. Within that group, AES Corp. (NYSE: AES) and Exelon Corp (NYSE: EXC) are two large stocks leading the way, showing a...
newratings.com  Feb 24  Comment 
WASHINGTON (dpa-AFX) - The AES Corp. (AES) announced the company is lowering its 2016 adjusted EPS guidance range to $0.95-$1.05, from prior guidance range of $1.05-$1.15. The company said its revised 2016 guidance primarily reflects the impact...
newratings.com  Feb 24  Comment 
WASHINGTON (dpa-AFX) - The AES Corporation (AES) announced earnings for fourth quarter that decreased compared to the same period last year. The company said its earnings declined to $326 million, or $0.34 per share. This was lower than $384...




 

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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