AES Reports Positive Momentum in First Quarter; Reaffirms 2023 Guidance; Introduces New Strategic Business Units.

ARLINGTON, Va: The AES Corporation (NYSE: AES) today reported financial results for the quarter ended March 31, 2023.

"Our first quarter results put us on track to meet our 2023 guidance and longer-term growth rates," said Andres Gluski, AES President and Chief Executive Officer. "The settlement agreement of AES Ohio's rate case and the termination of Warrior Run's thermal PPA for $357 million, materially advance our strategic objectives of growing our US utilities by double digits and decarbonizing our portfolio. I am also pleased to announce our four new Strategic Business Units, which better reflect the greatly simplified company that AES is today."

"I am excited about our financial performance and strategic accomplishments so far this year, which position us well to achieve or exceed our goals in this year and beyond," said Stephen Coughlin, AES Executive Vice President and Chief Financial Officer. "At our Investor Day this Monday, May 8th, we will provide greater detail around our new SBUs, new metrics, and our longer-term growth expectations."

New Strategic Business Units (SBU)

AES is a diversified power generation and utility company organized into four SBUs: Renewables (solar, wind, energy storage, hydro, biomass and landfill gas); Utilities (AES Indiana, AES Ohio and AES El Salvador); Energy Infrastructure3 (natural gas, LNG, coal, pet coke, diesel and oil); and New Energy Technologies (the development of green hydrogen, Fluence, Uplight and 5B).

Q1 2023 Financial Results

First quarter 2023 Net Income was $189 million, an increase of $18 million compared to first quarter 2022. This increase is the result of favorable contributions from the Energy Infrastructure and New Energy Technology Strategic Business Units (SBU), partially offset by lower contributions from the Utilities and Renewables SBUs.

First quarter 2023 Adjusted EBITDA2 (a non-GAAP financial measure) was $628 million, an increase of $7 million compared to first quarter 2022, primarily reflecting favorable wind and hydrology conditions, and new businesses at the Renewables SBU, favorable LNG transactions at the Energy Infrastructure SBU, and lower losses at the New Energy Technologies SBU due to reduced shipping constraints and costs, as well as fewer project delays. These positive drivers were partially offset by unfavorable weather conditions impacting demand at the Utilities SBU.

First quarter 2023 Diluted Earnings Per Share from Continuing Operations (Diluted EPS)...