AES Q4 Loss Widens; Revenues Top Estimates

(RTTNews) - Power distribution company The AES Corp. (AES) reported on Monday a wider loss for the fourth quarter, hurt by goodwill impairment expense and other non-operating expenses. Adjusted loss per share came in well above analysts' estimates, while quarterly revenues topped it. The company also initiated adjusted earnings guidance for the full-year 2023, in line with estimates.

For the fourth quarter, net loss attributable to the company was $903 million or $1.35 per share, wider than $632 million or $0.95 in the prior-year quarter.

Excluding items, adjusted loss for the quarter were $1.28 per share, compared to adjusted loss of $0.89 per share in the year-ago quarter.

On average, ten analysts polled by Thomson Reuters expected the company to report earnings of $0.46 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenue for the quarter increased to $3.06 billion from $2.77 billion in the same quarter last year. Analysts expected revenues of $2.99 billion for the quarter.

In December, the company and Air Products And Chemicals Inc. (APD) announced plans to invest around $4 billion to build, own and operate a green hydrogen production facility in Wilbarger County, Texas. Both companies will jointly and equally own the renewable energy and electrolyzer assets

Looking ahead to fiscal 2023, AES now projects adjusted earnings in a range of $1.65 to $1.75 per share. The Street is looking for earnings of $1.73 per share for the year.

The company is also targeting the signing a total of 14 to 17 GW of new long-term renewables PPAs through 2025.

Further, the Company reaffirmed its 7 to 9 percent annualized growth rate target through 2025, from a base year of 2020.

The company said growth in 2023 is expected to be primarily driven by 3.4 GW of new renewables expected to come online, while it is expected to be partially offset by lower margins from the Company's LNG business.