AES Corporation Reports Mixed Q3 2024 Results with Decline in Revenue and Adjusted EBITDA, but Significant Increase in Net Income

The AES Corporation reported its financial results for the third quarter and nine months ended September 30, 2024, revealing a mixed performance compared to the previous fiscal period. Total revenue for Q3 2024 was $3,289 million, a decrease of $145 million (4%) from $3,434 million in Q3 2023. For the nine months, revenue also fell to $9,316 million, down $384 million (4%) from $9,700 million in the same period last year. The decline in revenue was primarily attributed to lower sales in the Energy Infrastructure segment, which decreased by $238 million (13%) due to reduced regulated contract sales and higher outages.

Net income for Q3 2024 was $210 million, a decrease of $81 million (28%) from $291 million in Q3 2023. However, net income attributable to AES Corporation increased significantly to $502 million, up from $231 million in the prior year. For the nine months, net income attributable to AES was $1,119 million, a substantial increase from $343 million in 2023. This increase was driven by higher contributions from renewables projects and lower long-lived asset impairments.

Adjusted EBITDA for Q3 2024 was $692 million, down from $990 million in Q3 2023, while for the nine months, it decreased to $1,979 million from $2,187 million. The decline in adjusted EBITDA was influenced by lower margins in the Energy Infrastructure segment and adverse weather conditions affecting renewable energy production.

The company’s total assets rose to $50,079 million as of September 30, 2024, up from $44,799 million at the end of 2023. Current assets also increased significantly to $10,526 million, driven by higher cash and cash equivalents, which reached $1,919 million, up from $1,426 million. Total equity for AES stockholders increased to $3,290 million from $2,488 million.

Strategically, AES has been active in acquisitions and divestitures. The company completed the sale of its 47.3% controlling interest in AES Brasil for approximately $590 million, which included a 5.2 GW renewable energy portfolio. Additionally, AES has been focusing on expanding its renewable energy projects, with a reported backlog of 12.7 GW and 4.0 GW under construction.

The company also faced challenges, including rising interest expenses, which increased by 16% to $1,125 million for the nine months ended September 30, 2024. Furthermore, AES reported asset impairment expenses of $355 million for the nine months, reflecting ongoing adjustments in its asset portfolio.

Overall, while AES Corporation experienced declines in revenue and adjusted EBITDA, it reported significant increases in net income attributable to the company, driven by strategic growth in its renewable energy segment and effective management of its asset portfolio.