AES(AES) - 2024 Q4 - Annual Results

Financial Performance - Full year 2024 Net Income was $698 million, an increase of$880 million compared to 2023, driven by higher contributions from renewables projects and lower impairments[8]. - Adjusted EBITDA for 2024 was $2,639 million, a decrease of$189 million from 2023, primarily due to drought conditions and outages in Colombia[9]. - Adjusted EPS for 2024 was $2.14, an increase of$0.38 compared to 2023, mainly driven by higher contributions from renewables projects[11]. - Total revenue for the year ended December 31, 2024 was $12,278 million, a decrease of 3.1$12,668 million in 2023[27]. - Net income attributable to The AES Corporation for the year ended December 31, 2024 was $1,679 million, compared to$249 million in 2023, representing a significant increase[27]. - Basic earnings per share for the year ended December 31, 2024 was $2.38, up from$0.37 in 2023[27]. - For the three months ended December 31, 2024, total revenue was $2,962 million, slightly down from$2,968 million in the same period of 2023[29]. - Operating margin for the year ended December 31, 2024 was $2,314 million, a decrease from$2,504 million in 2023[27]. - Interest expense increased to $1,485 million in 2024 from$1,319 million in 2023[27]. - The company reported a gain on disposal and sale of business interests of $444 million for the year ended December 31, 2024, compared to$134 million in 2023[27]. - The total cost of sales for the year ended December 31, 2024 was $9,964 million, down from$10,164 million in 2023[27]. - Net income for the year ended December 31, 2024, was $698 million, a significant recovery from a net loss of$182 million in 2023[35]. - Cash and cash equivalents at the end of 2024 were $2,039 million, up from$1,990 million in 2023, indicating a year-over-year increase of 2.5%[35]. - Total current liabilities decreased to $8,571 million in 2024 from$9,731 million in 2023, representing a reduction of approximately 11.9%[33]. - The company reported a net cash provided by operating activities of $2,752 million for the year ended December 31, 2024, compared to$3,034 million in 2023[35]. - Capital expenditures for the year were $7,392 million, a slight decrease from$7,724 million in 2023[35]. - The company reported a diluted EPS of $0.79 for Q4 2024, recovering from a loss of$0.14 in Q4 2023, with a twelve-month EPS of $2.37 compared to$0.34[45]. Strategic Initiatives - The company signed or awarded 6.8 GW of new contracts in 2024, including 4.4 GW of renewables under long-term PPAs[5]. - The PPA backlog consists of 11.9 GW, with 4.9 GW under construction, indicating strong future growth potential[13]. - The company is initiating 2025 guidance for Adjusted EBITDA of $2,650 to$2,850 million, with expected growth from new renewables projects[15]. - The company expects to complete construction of 3.2 GW of new renewables in 2025, contributing to future revenue growth[5]. - The company reaffirmed its annualized growth target of 5% to 7% for Adjusted EBITDA through 2027, based on 2023 guidance[15]. - The company plans to continue its market expansion efforts, particularly in renewable energy sectors, to align with global sustainability trends[36]. Debt and Liquidity Management - The company issued $1,450 million in recourse debt during 2024, compared to$1,400 million in 2023, reflecting a strategic move to enhance liquidity[35]. - Future guidance indicates a focus on reducing non-recourse debt, which stood at $20,626 million in 2024, down from$18,482 million in 2023[33]. - Parent Company liquidity at the end of December 2024 was $2.047 billion, comprising$265 million in cash and $1.782 billion available under credit facilities[50]. - The Parent Company relies on subsidiary distributions to fund debt service and other cash needs, highlighting the importance of these distributions for operational liquidity[50]. Impairments and Losses - Impairment losses for Q4 2024 were$195 million, a decrease from $559 million in Q4 2023, while the twelve-month impairment losses were$374 million compared to $877 million[45]. - The total asset impairments across various projects, including$198 million at Warrior Run and $139 million at New York Wind, significantly impacted the overall financial performance[48]. - Income tax benefits associated with impairments and losses amounted to$68 million related to AES Ventanas, $46 million for Warrior Run, and$13 million for AES Andes, impacting earnings per share positively[48]. - Losses incurred due to early retirement of debt at AES Andes totaled $46 million, or$0.07 per share, indicating financial strain from debt management[48]. - The company experienced day-one losses of $20 million, or$0.03 per share, at AES Renewable Holdings due to sales-type leases, indicating challenges in new project implementations[48]. Subsidiary Distributions - Total subsidiary distributions to the Parent Company for the last four quarters reached $1.633 billion, with$1.603 billion from subsidiary distributions and $30 million from returns of capital[50]. - The company reported a total of$1.504 billion in subsidiary distributions for the quarter ended September 30, 2024, reflecting a decrease from previous quarters[50].