EXHIBIT 99.1
FOR IMMEDIATE RELEASE
AES REPORTS EARNINGS OF $0.83 PER SHARE (PRE-SPLIT) FOR THE QUARTER,
BEFORE EXTRAORDINARY ITEM
ARLINGTON, VA, April 27, 2000 -- The AES Corporation (NYSE: AES)
announced today that net income before extraordinary item was $181 million for
the quarter ended March 31, 2000, representing a dramatic increase over the net
loss of $(13) million for the first quarter of 1999. Diluted earnings per share
before extraordinary item were $0.83 for the quarter, compared to a loss of
$(0.07) for the same quarter in 1999. Revenues for the quarter were $1.5
billion, an increase of 131% from $638 million in the first quarter of 1999.
Operating income also increased 91% to $390 million, up from $204 million in the
first quarter of 1999. Net income was $174 million for the quarter ended March
31, 2000.
The extraordinary charge of $7 million after tax this quarter related
to the early extinguishment of certain corporate debt and the corresponding
write-off of deferred financing costs.
Barry J. Sharp, Chief Financial Officer, commented, "We are extremely
pleased with the record results. Most notably, the 91% increase in operating
income to $390 million exhibits the real strength of our first quarter. We also
continue to see increasing benefits from our worldwide geographic and business
segment diversification (generation and distribution businesses). This quarter
we have also added to this news release a supplemental schedule of information
which we believe our investors will find helpful in their efforts to understand
our diverse business segments."
Dennis W. Bakke, President and Chief Executive Officer, stated, "AES is
off to an excellent start in 2000. Most of our existing businesses performed
well and new opportunities abound in many parts of the world. This year we hope
to continue to expand the ways in which we serve the world, including our newer
initiatives in competitive retail and telecom."
During the quarter, AES also announced a 2 for 1 common stock split.
The record date is May 1, 2000 and the payment date is June 1, 2000. The
financial information presented in this news release does not reflect the impact
of the stock split.
AES also announced the appointment of three new Group Managers:
* Naveed Ismail: Group Manager for Argentina, Uruguay and Peru.
* Rich Bulger and David Travesso: Co-Group Managers for the Sao Paulo
region of Brazil.
Business development successes in the first quarter of 2000 include the
following:
* In March, a subsidiary of AES acquired for $8 million, GeoUtilities
Inc., an internet-based superstore for energy, telecom and other vital services.
* In March, a subsidiary of AES completed a financing associated with
823 MW of generating facilities in the Republic of Georgia.The financing
included the acquisition of the 600 MW Gardabani thermal plant and the
establishment of 25 year concessions for the Khrami I and II hydro stations,
which have a combined capacity of 223 MW.
* In March, a subsidiary of AES, completed a $440 million non-recourse
project financing for AES Red Oak, an 832 MW natural gas-fired combined cycle
plant in Sayreville, New Jersey.
* In February, AES announced that it had entered into an agreement to
acquire a 59% stake in the 1,000 MW hydroelectric facility of Hidroelectrica
Alicura S.A. ("Alicura") in Argentina from Southern Energy, Inc. ("SEI").
* In February, AES announced that a subsidiary had reached an agreement
with the Bulgarian state-owned electric utility NEK, that will allow AES to
build, own, operate and transfer a $750 million lignite-fired power plant.
* In January, a subsidiary of AES agreed to acquire 59% of the
outstanding preferred (non-voting) shares of Eletropaulo S.A. ("Eletropaulo").
* In January, a subsidiary of AES and Caterpillar Inc. reached a
service agreement for multiple energy products that will result in the
construction of a 45 MW cogeneration plant in Mossville, Illinois.
The company's generating assets include interests in one hundred and
twenty-five facilities totaling over 44 gigawatts of capacity. AES' electricity
distribution network has over 954,000 km of conductor and associated rights of
way and sells over 114,000 gigawatt hours per year to over 15 million end-use
customers.In addition, through its various retail electricity supply businesses,
the company sells electricity to over 154,000 end-use customers.
AES is dedicated to providing electricity worldwide in a socially
responsible way.
THE AES CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE QUARTERS ENDED MARCH 31, 2000 AND 1999
- --------------------------------------------------------------------------------
QUARTER QUARTER
ENDED ENDED PERCENTAGE
03/31/2000 03/31/1999 CHANGE
- --------------------------------------------------------------------------------
($ in millions,
except per
share amounts)
REVENUES:
Sales and services $ 1,476 $ 638 131%
OPERATING COSTS
AND EXPENSES:
Cost of sales
and services 1,057 418 (153%)
Selling, general and
administrative
expenses 29 16 (81%)
------- -------
TOTAL OPERATING COSTS
AND EXPENSES 1,086 434 (150%)
------- -------
OPERATING INCOME 390 204 91%
OTHER INCOME AND
(EXPENSE):
Interest expense (269) (133) (102%)
Interest and other
income 31 19 63%
Equity in earnings of
affiliates (before income tax) 118 (91) 230%
------- -------
INCOME BEFORE
INCOME TAXES
AND MINORITY
INTEREST 270 (1) 27,100%
Income tax provision 71 (6) (1,283%)
Minority interest 18 18 --
------- -------
INCOME BEFORE
EXTRAORDINARY ITEM 181 (13) 1,492%
Extraordinary item, net of tax -
Early extinguishment of debt (7) -- n/a
------- -------
NET INCOME $ 174 $ (13) 1,438%
======= =======
DILUTED EARNINGS
PER SHARE: (1)
Before extraordinary item 0.83 (0.07) 1,286%
Extraordinary item (0.03) -- n/a
------- -------
Total $ 0.80 $ (0.07) 1,243%
======= =======
(1) Diluted earnings per share are calculated before the effect of the 2 for
1 stock split recently declared by AES. The stock split will occur on
June 1, 2000 for shareholders of record on May 1, 2000.