AES Reports Second Quarter Earnings Per Share Increase of 56%, to $0.39 Per Share.ARLINGTON, Va.--(BUSINESS WIRE)--July 21, 1998-- AES Also Announces Plans for Public Offering The AES Corporation AES Corporation AES (NYSE) is a Fortune 1000 company that generates and distributes electrical power. It was founded on January 28, 1981 by Roger Sant from the US Federal Energy Administration and Dennis Bakke from the Office of Management and Budget. (NYSE NYSE See: New York Stock Exchange : AES) announced today that net income was $71 million for the quarter ended June 30, 1998, an increase of 69% compared to net income of $42 million for the second quarter of 1997. Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of were $0.39 for the quarter, up 56% compared to $0.25 for the same quarter in 1997. Revenues for the quarter were $565 million, up 116% compared to $261 million reported in the same period last year. For the first half of 1998, net income was $136 million, a 66% increase compared to the first half of 1997. Diluted earnings per share for the first half of 1998 were $0.75, up 50%, compared to $0.50 for the same period in 1997. Revenues for the first half of 1998 were $1.140 billion, up 118% from the $522 million reported a year earlier. Dennis W. Bakke, President and Chief Executive Officer, commented, "Plants in operation and business development efforts showed positive performance during the quarter. Highlights include: - signing a concession agreement Concession Agreement A right granted by a government to a corporation. It specifies rules under which the company can operate locally. Notes: Some concession agreements might include tax breaks for the corporation, in order to keep them from moving to another jurisdiction. for the 230 MW Caracoles hydro hy·dro adj. Hydroelectric. n. pl. hy·dros 1. Hydroelectric power. 2. A hydroelectric power plant. project in Argentina; - AES's affiliate, Light, acquiring the Electropaulo Metropolitana distribution company that serves Sao Paulo, Brazil; - financing the purchase of three southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region, generating stations with a combined capacity of 3,956 MW. - acquiring Edelap, a distribution company in Argentina; - financing the Merida III 484 MW gas-fired combined cycle A combined cycle is characteristic of a power producing engine or plant that employs more than one thermodynamic cycle. Heat engines are only able to use a portion of the energy their fuel generates (usually less than 50%). The remaining heat from combustion is generally wasted. plant in Mexico; and - winning a bid for the 450 MW gas-fired Meghnaghat plant in Bangladesh. We are pleased with the steps we are taking with our electricity distribution businesses, also. This relatively new area for AES provides our people with significant opportunities to restructure businesses and use their business skills. Roger W. Sant SANT South African Native Trust , Chairman, stated, "We are experiencing an increase of new market opportunities in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , Eastern Europe Eastern Europe The countries of eastern Europe, especially those that were allied with the USSR in the Warsaw Pact, which was established in 1955 and dissolved in 1991. , and Central and Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. , although opportunities appear to be reduced in places like China and Southeast Asia Southeast Asia, region of Asia (1990 est. pop. 442,500,000), c.1,740,000 sq mi (4,506,600 sq km), bounded roughly by the Indian subcontinent on the west, China on the north, and the Pacific Ocean on the east. due to the Asian financial crisis." AES also announced plans to sell up to 6,500,000 shares of common stock, and approximately $200 million of convertible securities. The underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. group, co-led by Salomon Smith Barney Smith Barney is a division of Citigroup Global Capital Markets Inc., a global, full-service financial firm, that provides brokerage, investment banking and asset management services to corporations, governments and individuals around the world. and J.P. Morgan & Co., plans to market the securities in the U.S. and Europe. AES is a leading global power company that currently owns or has an interest in ninety power facilities totaling over 27,000 megawatts in the United States, Canada, Australia, Argentina, Brazil, Dominican Republic Dominican Republic (dəmĭn`ĭkən), republic (2005 est. pop. 8,950,000), 18,700 sq mi (48,442 sq km), West Indies, on the eastern two thirds of the island of Hispaniola. The capital and largest city is Santo Domingo. , Pakistan, the Netherlands, Hungary, Kazakhstan, Mexico, China and the United Kingdom. AES also distributes electricity to nearly 13 million customers. In addition to having assets in excess of $9 billion, the Company has more than $5 billion of projects in construction or late stages of development. AES is dedicated to providing electricity worldwide in a socially responsible way. For more general information visit our web site at www.aesc.com or contact investor relations Investor relations The process by which the corporation communicates with its investors. at investing@aesc.com. The list aes-pr-announce is an automated au·to·mate v. au·to·mat·ed, au·to·mat·ing, au·to·mates v.tr. 1. To convert to automatic operation: automate a factory. 2. mailing list An automated e-mail system on the Internet, which is maintained by subject matter. There are thousands of such lists that reach millions of individuals and businesses. New users generally subscribe by sending an e-mail with the word "subscribe" in it and subsequently receive all new and can be found on the investing page of our web site. Those who subscribe to Verb 1. subscribe to - receive or obtain regularly; "We take the Times every day" subscribe, take buy, purchase - obtain by purchase; acquire by means of a financial transaction; "The family purchased a new car"; "The conglomerate acquired a new company"; this list will receive updates when AES issues a press release. -0-
THE AES CORPORATION
-------------------
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE PERIODS ENDED JUNE 30, 1998 AND 1997
----------------------------------------------------------------------
Three Three Change
Months % Months % From
Ended of Ended of Previous %
06/30/98 Sales 06/30/97 Sales Year Change
----------------------------------------------------------------------
($ in millions, except per share amounts)
REVENUES:
Sales and
services $ 565 100% $ 261 100% $ 304 116%
OPERATING COSTS AND EXPENSES:
Cost of sales
and services 385 68% 163 63% (222) -136%
Selling, general
and administrative
expenses 12 2% 6 2% (6) -100%
Provision to reduce
contract
receivables - 0% 3 1% 3 100%
----- ----- -----
Total operating costs
and expenses 397 70% 172 66% (225) -131%
----- ----- -----
OPERATING INCOME 168 30% 89 34% 79 89%
OTHER INCOME AND (EXPENSE):
Interest expense (99) -18% (48) -18% (51) 106%
Interest income 17 3% 10 4% 7 70%
Equity in earnings
(before income
tax) 43 8% 17 6% 26 153%
----- ----- -----
INCOME BEFORE INCOME
TAXES AND MINORITY
INTEREST 129 23% 68 26% 61 90%
Income taxes 36 6% 22 8% (14) -64%
Minority interest 22 4% 4 2% (18) -450%
----- ----- -----
NET INCOME $ 71 13% $ 42 16% $ 29 69%
===== ===== =====
BASIC EARNINGS
PER SHARE: $0.41 $0.26 $0.15
===== ===== =====
DILUTED EARNINGS
PER SHARE: $0.39 $0.25 $0.14
===== ===== =====
THE AES CORPORATION
-------------------
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE PERIODS ENDED JUNE 30, 1998 AND 1997
--------------------------------------------------------------------
Six Six Change
Months % Months % From
Ended of Ended of Previous %
06/30/98 Sales 06/30/97 Sales Year Change
----------------------------------------------------------------------
($ in millions, except per share amounts)
REVENUES:
Sales and
services $ 1,140 100% $ 522 100% $ 618 118%
OPERATING COSTS
AND EXPENSES:
Cost of sales
and services 782 69% 330 63% (452) -137%
Selling, general and
administrative
expenses 27 2% 15 3% (12) -80%
Provision to reduce
contract receivables 15 1% 10 2% (5) -50%
----- ------ -----
Total operating
costs and
expenses 824 72% 355 68% (469) -132%
------ ------ -----
OPERATING INCOME 316 28% 167 32% 149 89%
OTHER INCOME AND (EXPENSE):
Interest expense (202) -18% (92) -18% (110) 120%
Interest income 31 3% 18 3% 13 72%
Equity in earnings
(before income tax) 100 9% 37 7% 63 170%
----- ------ -----
INCOME BEFORE INCOME
TAXES AND MINORITY
INTEREST 245 22% 130 24% 115 88%
Income taxes 69 6% 42 8% (27) -64%
Minority interest 40 4% 6 1% (34) -567%
----- ------ -----
NET INCOME $ 136 12% $ 82 15% $ 54 66%
====== ====== =====
BASIC EARNINGS
PER SHARE: $ 0.77 $ 0.51 $ 0.26
------- ------- -------
DILUTED EARNINGS
PER SHARE $ 0.75 $ 0.50 $ 0.25
=========== ========== =========
CONTACT: The AES Corporation
Kenneth R. Woodcock, 703/522-1315
|
|
||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion