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AES (AES) 2 Aug 24 2024 Q2 Earnings call transcript

AInvestSaturday, Aug 3, 2024 2:15 pm ET
1min read

The AES Corporation held its Q2 2024 earnings call, highlighting a strong second quarter with key financial achievements and strategic advancements. Here are the key takeaways from the call:

Financial Performance

AES reported a solid second quarter, with adjusted EBITDA with tax attributes reaching $843 million, adjusted EBITDA at $652 million, and adjusted EPS of $0.38. The company is on track to meet its 2024 financial objectives, with expectations to be in the top-half of its ranges for adjusted EBITDA with tax attributes and adjusted EPS.

Strategic Partnerships and Growth

AES has made significant strides in expanding its partnerships with hyperscalers, signing 2.5 gigawatts of new agreements in total, including 1.2 gigawatts with major datacenter providers. These partnerships are transformative for both AES Ohio and AES Indiana, with the potential to increase peak load at both utilities by more than 50%.

Datacenter Growth and Renewables

AES is actively expanding its datacenter growth across its U.S. utilities, particularly in AES Ohio and AES Indiana. The company has signed agreements to support 1.2 gigawatts of new load, which is expected to come online in phases, beginning in 2026. Additionally, AES has announced a 170 megawatt solar plus storage development project in Indiana, which is a significant step towards a more sustainable energy future.

Investor Relations and Future Outlook

The call featured a question-and-answer session with key shareholders and investors, providing valuable insights into their concerns and expectations. AES reiterated its confidence in its ability to continue signing renewable PPAs with mid-teen IRRs, citing the growing demand for power from datacenters and its industry-leading position in this sector. The company also expressed optimism about its long-term growth prospects, with a focus on maximizing the quality of megawatts over the quantity.

Conclusion

Overall, AES Corporation's Q2 2024 earnings call highlighted a company in a strong financial position with a clear strategic direction. The company's focus on expanding partnerships with hyperscalers and investing in renewable energy projects positions it well for future growth and success. AES remains committed to delivering value to its shareholders and driving innovation in the energy sector.

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