AES(AES) ZACKS·2025-04-11 13:35Core Viewpoint - The AES Corporation is focused on expanding its renewable energy generation and has also been increasing its presence in the liquefied natural gas (LNG) market, while facing challenges from declining wholesale prices [1]. Group 1: Renewable Energy Expansion - AES is enhancing its renewable generation portfolio to meet the rising electricity demand, completing 3 gigawatts (GW) of new capacity in 2024 and planning to add 3.2 GW by the end of 2025 [2]. - The company is actively retiring coal-fired units to promote clean energy, having retired 481 megawatts (MW) of coal generation in Chile and the United States in 2024 [3]. Group 2: LNG Operations - AES operates LNG import terminals in the Dominican Republic with a storage capacity of 160,000 cubic meters and has long-term contracts to supply re-gasified LNG to industrial users and third-party power plants [4]. - The completion of a new 670 MW combined-cycle gas plant in Panama is expected to enhance the utilization of AES's existing LNG regasification and storage facilities [4]. Group 3: Financial Challenges - The company faces headwinds from a significant decline in wholesale electricity costs due to increased renewable energy use and low-cost natural gas, which may negatively impact its financial performance [5]. - As of December 31, 2024, AES had a long-term debt of 3.59 billion, with cash equivalents of $2.04 billion, indicating a potential liquidity concern [6]. Group 4: Stock Performance - AES shares have decreased by 12.9% over the past month, contrasting with a 1% decline in the industry [7].