The AES Corporation (AES) Q2 2024 Earnings Call Transcript

Daily EarningsFriday, Aug 2, 2024 11:03 pm ET

1min read

The AES Corporation held its second quarter 2024 financial review call, showcasing a strong financial performance and strategic advancements in large technology customers and renewable energy.

Financial Performance

AES reported a strong second quarter, with adjusted EBITDA with tax attributes of $843 million, adjusted EBITDA of $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.

Expansion in Utilities and Renewables

AES has made significant progress in expanding its work with major datacenter providers, signing 2.5 gigawatts of new agreements, including 1.2 gigawatts of new datacenter load growth across AES Ohio and AES Indiana. The company expects to increase the peak load at both utilities by more than 50%, positioning them for further growth.

Incorporating Generative AI in Portfolio

AES is focusing on incorporating generative AI in its portfolio to develop new competitive advantages. The company has signed a deal to acquire a 170 megawatt solar plus storage development project in Texas, marking a strategic move towards a sustainable and AI-driven energy future.

Stakeholder Interactions

During the call, key shareholders and investors raised concerns about credit metrics, market dynamics, and the impact of policy changes on renewable energy projects. AES addressed these questions, highlighting the company's robust financial position and ability to navigate market challenges.

Sector Trends and Future Outlook

The earnings call provided insights into trends within the energy sector, with a focus on the increasing demand for renewable energy and the role of generative AI in transforming the power segment. AES's strategic positioning in this landscape, with a focus on quality megawatts and long-term customer relationships, positions the company for sustained growth.

In conclusion, AES Corporation's Q2 2024 financial review call highlighted the company's strong financial performance and strategic advancements in the utility, renewable energy, and technology sectors. The company's focus on innovation, sustainability, and stakeholder collaboration positions it well for future growth and success.

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