AES - Earnings call transcript Q3 2019

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Operator

Good morning, and welcome to the AES Corporation's Third Quarter 2019 Financial Review Conference Call. [Operator Instructions] Please note, today's event is being recorded.

I would now like to turn the conference over to Ahmed Pasha, Vice President of Investor Relations. Please go ahead.

Ahmed Pasha

Thank you, Andrea. to quarter welcome call. financial and morning, our XXXX third review Good

making the these press financial that from aes.com. statements. a website be related presentation may for Today, SEC filings Please statements are will Our to and these our cause information future release, differ many There call. are available factors. results on we refer of forward-looking factors our during materially discussion at to

Officer; our me our our Gustavo this Executive morning and Joining other management of Pimenta, Gluski, Financial members President and Andrés Officer; Chief Chief are senior team.

will call With turn that, Andrés? to I the over Andrés.

Andrés Gluski

morning, financial you review Good for XXXX third quarter thank and call. joining everyone, our

highlights follow quarter and I description on successfully and the third executing quarter are with of strategy. our results. commitments financial Today, the how will Gustavo a and walk our will detailed then of delivering through year-to-date we on our

quarter higher in same our line expectations. Our year. that quarter the half for third which call, we be our third adjusted much the year, the of in for second $X.XX, strong results results mentioned of XX% with per growth earnings quarter our are our prior would was is the our On share and last than

to million, strategy our we through We apparent of laid $XXX guidance $X.XX, walk a me X% growth making to average are on XXXX. free with to ability XXXX and previous progress that X% annual our confident our step-by-step. cash through calls. out good to we are am deliver the I and we're deliver with track to you report of on on on Allow pleased midpoint our EPS in adjusted the midpoint flow target

Slide to turning First, X.

becoming about investment-grade. our progress Let us talk towards

balance this first this morning's achieved As you received our pleased reflects the an significantly currencies, commodities. AES' release, have materially press predictable. and investment-grade a in and risks sheet, have reduced We also to not to make our transformation the history. foreign have for strengthened very milestone, multi-year to more our business hydrology, simpler rating seen I'm exposure time but we strategy may only we in as such

Slide in renewables. our X, to Moving and growth

we quarter, total gigawatts. bringing X.X purchase megawatts agreements, signed of This over year-to-date new to power our renewable XXX

fully will gigawatts X capacity gigawatts consistently we confident are We that X every new to renewable deliver of year.

of under As have construction are our signed of half today, which backlog X is and projects half of PPAs. gigawatts,

of sufficient anticipated, in of uniquely international. are these As about half scale, as and also synergies benefiting while from are advantage space of the projects see the U.S. positioned half ourselves in economies renewable take and to diversity. We geographical

this from at is energy storage. another our approximately Looking hydro, gigawatts renewables, X, Slide between X.X X-gigawatt solar, of wind, split perspective backlog or and XX% on

expect of to by majority We the end be the XXXX. our online of backlog

projects. specific to on large Now

project we the final can We're X, the Slide to repowering On XXXX. Southland X.X early on virtually see commissioning stage. complete, gigawatt are is begin and we operations that in in commercial track currently

water parallel, to X, which the XXX Phase will provide of by and the to progressing project complete, X. time all both megawatts Phase tunneling project. XX Slide Less miles which they than cabins of year-end the is AES X of completed. of at the making on The Alto remain on finish to tunnel project. caverns construction be Maipo X good XX% powerhouses. capacity well progress In Turning of will is also the including tunneling for XXXX are additional hydroelectric miles are Gener

to a strategy commodity BTU our XX-year are Vietnam alongside no Last will exposure. storage and U.S. we dollar Let contract us received to gas on have previously cycle LNG from Slide turn making build develop discuss LNG the now approval our of advances the X. month, we approved Government and tera and denominated combined a complex with XXX regasification terminal. X.X-gigawatt project turbine This

We as fuel see business and renewables We LNG to the expect close capacity the and of growth infrastructure our expansion to that and financial provides to our XXXX. predictable, a XXXX complementary low-cost clean, in system. flexibility in operations strategy commercial achieve by offering

focusing is three cost Asia. Republic. markets, of and for how our rapidly the we is on from markets, Southeast example growing are oil. and business Caribbean, We benefiting America, fuel A generation to growing LNG are supply of to these all the displace Central Dominican demand gas this natural good demand there In higher new diesel

Slide, quarter on we other finalized shown local joint XX generators. with this venture a As

the storage As XX a by in XX% our result tank, or of this JV, capacity build an LNG a Republic expanding second additional BTUs. Dominican we will tera

or signed in capacity minimal quarter denominated we to tera require advanced dollar for under will contracts. ground long-term already of investment have negotiations additional completion late in U.S. and expansion expect AES, first This from with of BTU XX break We the XXXX in this XXXX.

increase As margin, AES. from investment our LNG we relatively requiring previously is had mentioned, easily allows business while to which scalable, us little our

are commitments to will we technologies, guidance we’re our While growth our future contribute in in delivering maintain also to in earnings investments new leadership making on periods, our which our years.

market and the cloud-based We the market for in in efficiency energy are energy currently leader U.S. storage the solutions leader global

collaborate on XX. we're our line. across alliance Slide to Google announcing Turning innovation a Today with strategic business to

customers. to find adoption storage of and new together of improve will experience to accelerate solutions broad be renewables the and to corporate the energy We working

AES develop, with help potential America Google the in Google Latin in energy U.S. have the its management own, markets to meet on targeted opportunities clean objectives. and will to that and projects collaborate Cloud energy operate and

of expectations. will in for us to line industry of allowing to and meet AES, innovation changing addition alliance put for optimize further front operations, reduce costs, additional In customer the providing the the revenues both us on potential this

is will cloud-based insights It cash This revenue. and XX, we of growing customer sector, broad energy in base the progressing that solutions Slide a efficiency. in positive On margin business into investment behavior strategic see and that is and rapidly Uplight can from in million provider is our well. our is leading digital $XXX a annual U.S. provide

continues business Our storage global venture our market energy Siemens. leader, be Fluence the through Fluence, XX-XX joint with to

in growth to for We capture technology. demand this accelerated are the able

on record the see you and now As XXX high meet in quarter at more which requirements first third won cash to than the the its contracts combined of XXXX of three quarters is capabilities of billion. X a to to roughly tripled a alone, Fluence Fluence XXXX megawatts, gigawatt its Slide in X backlog, compared positive a for with stands can expand has scale order variable the of business. Fluence margin value and continuing XX

our storage with us energy providing in competitive other business. advantage position leading a in is aspects Our of

in are storage component. nearly that include this of scale on XX a well on to capitalize and integrating our experience solar than projects the We of U.S. energy all growth half opportunity. positioned we very years seeing storage in Based are more

I'll capital Now and allocation the financial turn call more results to detail. over to discuss in Gustavo our

Gustavo Pimenta

results Today capital Thank financial outlook XXXX overall you, for allocation. our Andrés. and

are and performance ability objectives. Overall, encouraged our our financial to to confident on our we very remain strategic by deliver date and in

a in third shown rate. outages, a impact positive roughly the Slide in offline on quarter the a reflecting contributions the damage Republic lightning XXXX and quarter adjusted was in net strike In renewables tax of with timing in AES As U.S. the freak MCAC it businesses had insurance of Dominican XX, the third our $X.XX of from including region. Andrés EPS recovery on in major at new also caused related forcing lower Colon results impact. The $X.XX, plant our primarily

has In Panama year. Changuinola plant extended most plant our an for outage been on this of

of The large offset have of insurance we the timing throughout evenly distributed outages. to portion recognition the this not always While is year.

we quarter. that for $X.XX, this a call, On effectively recovery outages. in which was indicated about majority related first our this second third the catches second of quarter in half us in occurred This up fact the half year. the expected of we the the And to

of As the a seen versus negative recovery XX basis, slightly the is impact at on year-to-date $X.XX. insurance losses on Slide net

our Importantly, come early Changuinola fully in our online track in XXXX. back is is facility plant to Andrés on online

next four regulated an rate as our year. Turning In the more for resolution I the as results the PTC renewable and of pretax Slide PTC well or reflects the over SBU contributions $XX XX. slides, in cases last Adjusted million U.S. million of detail increased was contribution beginning to on for new Utilities projects $XXX XX%. XX. cover will Slide or quarter, increase

partially the Shady impacts exit These offset generation coal-fired by of Point. were at XXX MW of

remain modernize which over our its years filing, extension we the of expected on November DMR and XX. ruling track Indiana, XXXX $X.X plan billion we the calls to seven on for investment in go IPLs merits first DPLs hearing to confident feel grid continue Regarding to case. In electric an T&D half of for about of

would XXXX. by lower rate in America plan equity final AES the in mechanism past. Guacolda Colombia. roughly we in Cost approved, ruling digit early growth PTC improved the have rate be would was Chile, At expected and the through A case our If in South XX% well SBU, of a and be tracker $XXX at as the mid-single driven higher between recovered interest pricing margins by investment would key component largely million. an cases discussed base as higher is be

Argentina. a I developments recent would now take to to like in discuss moment

the expect you Fernandez, on be outlook. government incoming defined Alberto a elected the expected. we impact do President yet know, meaningful as policies recently are not new of Argentina but as to As our The

portfolio, several have years. achieved Argentina. material of restrictions in a of result now Right current cash face impact But to quality in the to the diversified and controls the out able strong shareholders. to last AES given you'll portfolio place deliver incentive our our mitigate Especially growth dividends our we we as the assets will are and over in flow of continue improvement be

results. our to back quarterly Turning

net PTC the in As well Republic the at of Colon. outages we discussed operations of commencement it at as Dominican the SBU related higher as AES MCC insurance and our reflects Panama, earlier recovery

charge Finally, reflect at X. doing and ratio capacity in and commissioning primarily results OPGC one-time lower transmission a a testing lower

last we summarize to three run in quarters versus And at performance from an versus XX% the higher first quarter, water the fourth in the XX. year we our In expect impact last Now saw the earned $X.XX U.S. $X.XX To Slide quarterly year. EPS we adjusted our planet - the of outage $X.XX a rate year. the tax of facility

outlook, XXXX our we full specific we X% feel we reaffirming Consistent fourth proxy, current very our On for provide and EPS $X.XX. with to to $X.XX XXXX. adjusted date are to our quarter basis year annual through of for XXXX X% on also will our our reaffirming growth guidance confident guidance on and Further, based achievements prior average a call.

XXXX left side Parent with allocation sources billion total on hand reflect our Slide largely on is discretionary cash, XX. Capital the of consistent to which $X.X call. the Beginning Turning last

majority The debt advantage cash are in parent. million one available able sale proceeds. come $XXX take of our of the return continues discretionary of roughly capacity of $XXX of our to million to from of and flow to Additionally, parent-free capital $XXX spring at subsidiaries million asset we the cash

the closed, Asset sell by sales of sPower both year as well include close as Jordan, expected down, which Ireland to have which and is end. Northern

announced Now for we to including $XXX be achieve to $XXX the the X% ratings. We hand our in our to to improvement right our to target increase the pay December. million dividend shareholders. versus in allocated We'll grade on reinforce down $XXX investment commitment celebrate million parent credit this side, year uses debt prior million of returning

and that four to mentioned, thresholds Andrés end within rating the included positive to very XX% the result, To pleased times Fitch. by X.X see FFO of end, Comfortably are year parent investment grade actions As to that an times from respectively. grade we that. agencies leverage and expect investment a as at the we rating XX%

leaving also subsidiaries our $XXX in $XX are investing about of We cash. million unallocated million

beginning from XXXX our through to location capital XX. Finally, on moving XXXX Slide

of this again has of billion is call, from We mentioned, discretionary cash, announced generated half last to just $XXX million closed more from generate parent-free which expected $XXX of expect the to our The capital, cash our additional that in our portfolio asset year. or X/X been cash comes which remaining sale million flow. be return about plus proceeds consistent than is with $X.X I in discretionary

of cash be to will cash XX% Slide discretionary dividends. this shareholder Turning Roughly of to on the use XX. the allocated

Looking year, forward, we the subject the with board, industry to line average. dividend by per to expect the annual to X% grow in review X%

our $XXX increase debt completed is this versus $XXX have of year, of target We an million prepayment this million. prior parent

the Once billion use project. investments backlog, our Vietnam are achieve to at accordance IPL completed, invest these projects with of be unallocated our expecting and new PPAs, $X.X allocation We of and to will project all in our our T&D in growth also $XXX objectives. XXXX to funding to contribute remaining beyond. at framework capital partial our financial million through cash it The used will LNG of

call will that, to back over turn the I Andrés. With

Andrés Gluski

Thanks Gustavo.

me our your key the please Before points. to allow to call questions, we open summarize

on and our Our demonstrate to execution, strong track quarter longer-term our third results remain expectations. meet we successful and XXXX guidance

uniquely our backlog shareholder strengthening our through long-term are and drive sheet growing business. of carbon renewable expanding to our and LNG We opportunities, infrastructure intensity, ratings, rapidly reducing credit value positioned balance our attractive

We technology to creating through and consolidate offer leader, energy are our position technologies as to execution, position most a strategy taking solutions that to returns energy storage as digit total strategic We believe Google. double our well us recently, with cloud-based steps alliance a our and such and shareholders.

ready now to take questions. we're Operator,

Operator

Julien Dumoulin-Smith question First from Bank Instructions] [Operator go comes Please of ahead. America. of

Julien Dumoulin-Smith

perhaps out, is to into How but on you take a up. year X%, I do How you cadence and starting year directly we're bit can do contributions you that you obviously little know how about context ahead elaborate that a it think over from pick how renewables or that perhaps, X% think about of get the renewable further, step much - about here? here. the see think to here of XX, the in to from I even of earnings quarterly coming not do the to So rolling

Gustavo Pimenta

Julien, Hi Gustavo.

So, of my region the as in most particularly the the is - the growth MCAC I quarter, in remarks. mentioned in in

probably, $X.XX $X.XX more than So, the we quarter in have the U.S. the renewable that. on a no space, to

an are should around $X.XX $X.XX that be $XXX that's globally, on annual deploying so to we million probably in And U.S. what of the because maybe growth most basis, it seen

be you going So seeing that's forward. will what

Julien Dumoulin-Smith

what think And then going a Panama, excess XXXX and more of monetize have about the near understand, given opportunities, importantly you I term, you if some volumes in you perhaps of timing those address it latest in more about also will, to from you some perhaps new earnings into LNG? can on volumes, How the do the expansion marketing effort. LNG, some here IMO regulations. LNG talked remaining profile Also your JV the on you holistically

Andrés Gluski

Andrés. is This Sure.

So I we of we think been Dominican in we've could had exactly Republic. saying sort do the done what that

up XX tera tank So there. basically, we filled BTU our

generators, signing capacity. we capacity. it's at additional basically with this By So, venture need full joint local other

So, to XX% that at so signing to of we're capacity going capacity process BTUs - quite is second and either tera agreed is that already tank tank. in with about BTUs the of or a for, XX that's build up the new of XX tera taking agreements the

Panama really possible. other is of So, Dominican was this through in generators and projects. the Republic, said BTU I at think XX% we an on to so the case other used that's put so Right now, considerable about Panama, have most have followed tera and have there on tank. In we we gas, gas does natural what XX capacity

plants, It also diesel not plant. from a has lot our of far too

have and trucks in also for local how of we like local in for a of capacity just fast has Dominican and it's we the terms - question those. CNG really, connect industry. the So It re-export also can Republic

point for capacity the once complete tera have now that is Republic we available. the we this XX BTUs And are Panama tera we for have another think about in that to BTUs. I continue Dominican So, tank XX in do

and industries it's be It's the demand, be of re-export. local plant. a the think, growing going to we Dominican is I power transportation. additional as So, Republic, time combination additional over in going did to And

American Barbados, export gas the possibilities as So, are natural gas. region Republic we well and obviously for Dominican for are from well, example, the and exporting of possibilities other as has natural to the Haiti, there Guyana, Central

Julien Dumoulin-Smith

quantify growth segment? contributions earnings But that in or not to earnings ready

Andrés Gluski

XXXX. to MCAC. the the this by mean $X.XX - in Yeah, course counting, doing think maybe $X.XX not is I could be potential we of what in We is Vietnam.

plus So this would that million into is expect returns going have $XXX the - equity it Vietnam and is project, project well. the as we we of be another good on

to XXXX. our be post big a So, that growth would as can see, contributor you earnings

Julien Dumoulin-Smith

$X.XX terms is XXXX? growth The today in of Right. of through incremental $X.XX to off is

Andrés Gluski

correct. That's That's opportunity. the

that up the some basically the $X.XX you So, talked we Dominican what of about in past filled in know had we Republic.

of additional the $X.XX upside. us another back tank in So, sort potential $X.XX to of puts

Operator

Gordon go ahead. comes Greg question next of Our from ISI. Please Evercore

Greg Gordon

think Couple - you probably have Vietnam million you LNG going allocated $XXX I XX and on one in them, just million ask of questions, CCGT investment I just was $XXX actually whether because answered investment, of online answered, to it Slide guess that's and $XXX your said you would in but total expected Is the be I 'XX right? that you the - million. it comes to said to

Gustavo Pimenta

Gustavo here, That's Greg. right.

close going investment. see we’re which into will our this XXXX is half XXXX, probably in XXX million equity financial then of So is XXXX and that in XXXX, we to to chart reach so in that complement draw $XXX spend the additional the

Greg Gordon

contract expect Yes, equity a know fair? this return like terms, and profile. you I on but would have that you disclosed to risk target projects Is mid-teens with levered

Gustavo Pimenta

That's about right, yes.

Greg Gordon

into you've separate can what confidence announcement be us It's versus to alliance, growth and has it's that at a a a like to strategic renewables to hard the them means implications? cynical, with the your you not backlog in announced tangible agreements one translates Google of commercial sense signing the of advantage, terms how in what profile PR just what's but hard competitive business. with And give

Gustavo Pimenta

the Yes, Greg, of not certainly been, sort fundamentals, really know does mean. well, what you We to know object. shiny to you that people as chase this think we've I go

meet Google be to first things to color are carbon develop it the realize preliminary sort we a zero it will positioned XX/X of announcement components renewable as is globe. energy things uniquely its and help has across that But many this materialize. Now and providing we

about to a to do recently XXX for that. megawatt We exactly So won do we bid in that. uniquely Chile positioned are

was - will believe, and be we first is U.S. will I Latin said, markets. in American as concrete, stage this that So be there targeted it the others and

that to the demand growing Second the corporate sector fastest of biggest, is web services. realize is

believe, announced about I gigawatts Google has globe. across of the So, X need

is So growing, they sector, big what and renewable this this it's a target, around growing want fastest corporate clock. is, it's the energy is the

that. well uniquely positioned to are We deliver

that. So again tuned stay be believe follow-ons deal and to Chile to we the there will

In the continue on addition, portfolio using around reductions. optimize would free on is cost energy management Then of to to - these there our for say is cost, our locations us some to the also, platform, and carbon deliver provide energy. opportunity in the clock I there elements

So we've of doing buzzwords again, years because machine only up AI learning, as people spending cleaning been you quite it's out a have. frankly lot throw data, the good data as that

very So and we've laborious task been data of up cleaning right having in the place. hard the

a believe two to a changing customer continually in the cost We'll really we in mentioned, sector. saving give boost in the So us we been leader will terms give it are We've capabilities. expectations. us by what on delivering our our also boost combining of new applications initiatives have

make So, into expect concrete very we this the alliance to announcements future.

sort this such areas that were a the the leaders announcement, PR really us feel energy certain of it two combined, as in is solutions U.S. in not just good of So energy is efficiency storage,

it of sense lot whole So two a six. sort plus is of I two equals think makes this

this what and our we're very really this And of sure going numbers, is this concrete. basically resources something to will make people is to all and upside have to dedicate we and be

on out, win these the years really what say, it you you could a make if probably, an sort that's build earnings have purchase at is additionality. would are agreements three because really our terms and power on setting even minimum, this of to two require new or - groundwork, impact of In I'd

not immediate context, going that important, but cost. just have it's put very think in So impact I to an it's to

Greg Gordon

is to IPO way where doesn't you when now, making distributions or that cash could economic significant we of earnings a sort are the monetize globally monetize progress. the this now but JV get point shareholders on Fluence actually concrete can making potentially mass. contributions right value this I any standalone like there Corp, terms contributor that another creating good cash you for selling public question to it's in either value what if that critical for market obviously it ways earnings flow product at mean, Last value a to different it's a really sound like It the tipping that of some or point shareholders? gets we AES for really you're be headway do

Gustavo Pimenta

you think a you head, it's know, - the you nail I a contributor. monetize as the the asset, it's - do regulated we Well, This on value. really that not marginal hit how is know

We it think to about differently. have

in going on impact So to growing It's market year. XXX% at future we've that's the have sector. created the market a leader of a our per major

have sort we're a So again, to investment, marginal it's of all the about think value by you not this. a creating

and grew business XXX% are up, but variable I As we really is prepare for last I the positive margin into is - mentioned, a we it mean it not, that to going cash it scaling money year.

So you have to up. scale it

have So business think directly sense there. a really point creating lot of probably the out it's our value in to will shareholders marker I and it for a make some

the can forward. you portfolio. forward. major feeling lot the that no our And because we've marker, doubt a it's various going be for AES what that, So think a we but be value good into put a our to business, I to sector do are I be would I worth, to to of going business what's ways value guys a this have able mean But within think part there very its it created of in going is get

integrate And in we Fluence in do how a to storage winning much know competitive some very developments coming renewable is and giving because as space. anybody that energy as it realize us the advantage exciting PPAs, about

new terms in products, ideas. in of So stay tuned, terms of

making solar inject it hydro, instead much Las energy and to which reservoir the river due when low, one we that of are first really take are world's when So and can you mostly or XX/X for having energy higher. Lajas can virtual dispatch you of to run in prices dispatch not is prices frankly a Chile, energy the example, the quite

lot innovation going exciting. a it's there's very down So of

Operator

Turnure JPMorgan. Christopher Our next from comes question Please go ahead. of

Christopher Turnure

little in XXXX a nonrecurring through I just terms wanted here a as of items. to kind quarter go of in the bit whole

$X.XX online think third with, about And fourth it the in quarter continuing now, EPS, or quarter, $X.XX anything there the to of So Panama for I the plants for guess, into proceeds XXXX that that? are insurance to in nonrecurring? adjusted fair is else relationship back

Gustavo Pimenta

Chris, Gustavo here. our I expected think to as that half, catch-up and not the expectation first No, large was due because QX from is the the outages first - as second it's it's as this a to - half call really, we recall $X.XX not - second a so our quarter and recurring call, a half, in from happened, impact may versus a that that's of weaker first we portion we one-time. read slightly those the half catch-up you really recover and first a in as QX, figure should it's mentioned what

is. that's it what So

Christopher Turnure

Panama at effects net almost said of be insurance, then kind it to kind so XXXX, not number would negative you for outage, XXXX be for would still residual no there the think $X.XX of your the of net of 'XX number the kind least, the or - going you And would impacted? I be why that

Andrés Gluski

That's That's correct. correct.

Christopher Turnure

items effect? of a in helping having or any terms And other kind nonrecurring meaningful QX of hurting

Andrés Gluski

may you rate. that it's one relatively the recall, had the low was last pointed I range tax Not tax, year remarks, we within really, basis, think unusual out but on a my in year-to-date I

be one but in thing part this of probably won't that us, a So it - happening the would QX year, one-time-ish. nothing that for no is that of

Christopher Turnure

rolled a plan back kind so long-term new your long-term after little year, February. introduced in term, then we bit longer I And far look this just, what's of guess, occurred your or you plan when forward at

versus You've some plan, success reached occurred, your have plan, the Ohio wondering DMR everyone's if bit partly been surprises investment going have has favor materialized any, kind little and kind faster plan in maybe maybe certainly than LNG your the offset by I'm grade, maybe favor, bigger is? that where just long-term of of the a your situation. interest rates

Andrés Gluski

DMR. I said we've Yes, good except We think business that it's upside. reducing under Chris, I everything of we've resolution I And agree think feel agree had renewables. whether paying so this, what about continue growing delivered down that some are are things debt, over growing you frankly quite to consistently with costs successful the the the which about we control those LNG think

see true, - that's that - it and we I track. good is wouldn't on put but DMR really to we So, the don't continue remains it the feel about

Christopher Turnure

terms some So together, all that at kind plan feel the on you're all of you ahead like of rolling getting yourselves that occurred? not and executing sounds like your really it in of of positives have

Andrés Gluski

that we debt. executing we we and, this delivered but we've we are I mean more certainly stats some is paid think schedule talking of on I plan and Again, that upfronted down about have our grade sort been true. ahead investment things getting our of year the

pay said very we $XXX paid we million million. think of debt, I of down it's important that recourse we $XXX down

have So over-delivering. we been

Operator

go Our of SunTrust. ahead. Agha next Ali question Please is from

Ali Agha

growth which your that conviction just up I us end XX% told want 'XX that that's still as and end old was rate the time, that you and 'XX sit rate. 'XX question, came you growth first high At would I when to back with today. quarters X% X% Andrés, at two also growth here you morning, forward aspirations the X% for 'XX. confirm growth quarter it Good to maybe think of that recall, the we or rate, roll your that I was through up had through to last

Gustavo Pimenta

is The Gustavo, yes. Yes. short here. answer

on said to and question, X% but to We will color be the your yes, providing X% reaffirming in that's I as our February, my are remarks, we expectation.

Ali Agha

about your the offsets in controls the experience prior or could forward? going $XXX cash million year-to-date, subsidiary good your cash the to that a run on you about got currently in and think Parent. flow leftist be perhaps what that the how implications place the looking Argentina numbers dealing with question, capital and Is Second for through in distribution we should flow Argentine are annual rate of a number government terms of distributions from

Gustavo Pimenta

Okay. Yes.

said years had no that's Argentina. the rate, we from you where the what past, Argentina, had not run know Regarding dividends a that as not we did three we - in dollar distribute

so And a years. was recent catch-up there in

in Gustavo having like his of and Argentina times. as little is portfolio in good a us been we've bit a also and that mentioned speech, times, ours in downs. up in one expect this is Now we We've there been to there don't affect bad

that We've in always made they're money, money assets reflects and XXXX fact lowly quality I in think made Argentina the the our of even we that very levered.

with of exchange expect rate the again next there. this we Argentina, don't paying out well the in run But So material to not controls it's we've you always, place, current certainly of operated sort know is year. dividends be

a We have big put back-office there.

And will, of, frankly, which is way you so one by to dollars using that's our get are to dollarizing worth services in Argentina us. if pesos quite

this. to So some offset that helps of

So capable to to be always we've money, been the clear, able in dollar. paying just buy of Argentina, we've always been dividends, we made haven't always

over So X% so, average like distributions to of if the and you it's like look subsidiary historically, is time. million $XX been more or X%

this but that's up something it's, well it's going quite and and what and is materially up getting our of kind there expect we've Argentina, and affect I downs, So, operated forecast. I it's of not to expect this frankly sort in downs. But

Ali Agha

that but that's going Bulgaria. of you expectations update your topic attention, Andrés, is give much what And - the or but used just not looking more are us to then there another about Can on finally, Merits everything on forward? quarters, and prior in an contract hearing get we're

Andrés Gluski

merits so speech. we why have new to nothing it Sure. that's of report wasn't part Really our on

to are and we're NEK is they is which even their be strong. growing continue payments, date the on now remains being on situation, season, plant We to time. investment grade. financial off-takers more and important, winter the is The paid entering up country The becomes dispatched it strong,

So continue. those things

the And regarding illegal of European talk. case state the front to our advisors continue aid Commission, in

to have we and yet they official So no case continue talk.

before, I is as but new asset really doing so, well. to have the - said report, And we we nothing

Operator

Fishman Morningstar. Charles Our next Please question comes ahead. from of go

Charles Fishman

the On Andrés Vietnam on contract.

referring you be in in to projects are approved the LNG with you're contracts and quarters negotiations the said I or the government long-term guess by the Okay, were with with you those? Vietnam contracts, contracts what contracts for

Gustavo Pimenta

supporting good look there both a two that's Basically are other. projects question. each Charl,

the XXX and the terminal. BTU regasification So, first storage is tera

that tera about will go the BTUs with Republic, XXX BTUs about XX and the BTUs. we Panama have put in to to tera tera So context. Dominican XXX Today, that between additional

So project. large is a this very

Now and case, we of remainder. XX% have in about the the project this PetroVietnam has

have we in project. So a partner this

So, gigawatts believe out. I in where is had of gas, offshore Vietnam. been five using which is turbine running X go? gas There will the about There gas

So be there the demand for terminal. a LNG will immediately

be combined In gas. using to gigawatts that plant, cycle addition would X.X which our gas of

own the in on cycle plants. The gas of that. combined second X.X project gigawatts XXX% turbine we Now the

So or when we talk about contracts. different contracts

the So one capacity the including the from coming and contract and of new Then would is energy be ourselves. generators, of there terminal the between X.X of of LNG gigawatts the course off-take the generation.

time on we built we done And a plant already has it performing, best it Xwhich the is in of country, Vietnam, gigawatt I realize Duong on have well very performers X.X and the one in budget. Mong

contract, dollar-based time. a paying it's long-term on As been

it like would this a repeat time. burning only So of gas Longjiang-X basically, be

supply is PetroVietnam would X this be gas contracts and is My name gas to Son and ourselves negotiating for the to between have other that terminal example negotiated The of obviously be with U.S. suppliers. of contracts the the yet

it's by Government to have us the of the But very project. then yet by been do Vietnam So and in negotiated. this those firm general - a commitment

is in And that so demand it say is Panama distinguishes the I'd the there. one thing Dominican that Republic, from, the and the say, projects -

of a question to building be XX% case anchor the tenant this faster, use be terminal getting So much a to it's not In storage usage. that going much, use where to - the plus XX% the plant a is it's going build of it. you facility

Operator

comes Gregg go next question Orrill Please of Our UBS. ahead. from

Gregg Orrill

Thank if whether return Yes. PPA driver you. that was and of in for a on you contract, the a reported I of was wondering the that buyout BHP capital could touch in you quarter? increase the BHP Chile

Andrés Gluski

has nothing This occurred two two effect So will take absolutely there yet. responding The to - part. no, second, years. are the

So of at there our ASN it affected at point. hasn't this returns all

know - let's you BHP was say mandate Corp green. second to has The a that a go from

out it half hydros what of existing more was So bit about of new and basically X they may terawatt came for in a than was hours a Chile. put energy back bid

The other are renewables. ones

our money contract. contracts, our No, So capacity is this our energy generally existing a make replace payments, pass-through. will we the on

to make contract, use they have capacity. our if to going us whole, not for So our they're

I this $XXX number lot our of strength think questioning in mentioned a have of about of be people is be yet to value think contracts. they basically contracts a this So absolute release shows, value press of around to these be in Chile, negotiated. has it's are of yet of the We number their has negotiated. you know yet $XXX million. sort This the But the but - exact million, to

I solid. these are think this very And contracts shows that

future is value this running So contracted. about still us capacity for - And is plant XXXX. was will about future it that they present through the of there - pay XX%

will think by strength it's Chile. and shows in decision and And a - I be contracts the our so business BHP the of this it's business

Gregg Orrill

will Do your growth impact you that think rate guidance?

Andrés Gluski

absolutely No, not.

Operator

conference question-and-answer our the Pasha to to like for over remarks. Ahmed any concludes I session. back This would closing turn

Ahmed Pasha

We today's on thank for joining us call. everybody

be always, questions follow-up the answer have. IR to team will may any As available you

Next we at week, again the a many forward conference have and to see you nice in Thanks seeing - Orlando. EEI day. of look

Operator

Thank concluded. now you attending for presentation. has today's conference The

You may now disconnect.

The AES Corporation (AES) 6 Nov 192019 Q3 Earnings call transcript