AES - Earnings call transcript Q1 2021

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning and welcome to the AES Corporation Q1 2021 Financial Review Conference Call. All participants will be in a listen-only mode. [Operator Instructions] Please note this event is being recorded. I now like to turn the conference over to Ahmed Pasha, Chief Treasurer and Vice President of Investor Relations. Thank you and over to you.

Ahmed Pasha

Operator. you, Thank welcome call. and first XXXX quarter Good to review financial morning our

Our on information making related our and results many press presentation release, cause may financial the There aes.com. with future we with are measures factors that during differ between Reconciliations GAAP presentation. non-GAAP financial statements, materially our website recent SEC. Today, are will from which these statements along be forward-looking XX-K the most also our be found can to in the call. discussed are at and website on available XX-Q filed and

Joining turn me Chief Chief Financial Andrés call Andrés? Andrés. the With of our our Executive other and President team. senior members over to this and morning are Officer our Pimenta, will Officer; I Gustavo management Gluski, that,

Andrés Gluski

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

us our achieve growth average quarter track on color Gustavo first XXXX Our XXXX. the in X% through on put to and annual call. guidance financial later results results more X% provide to our will

our about growth. we for March, a As see we early in opportunity Investor Day great spoke on

Given to the shift on changes momentum low And to capitalize energy. sources carbon of the very well our we sector. are is positioned in

many we years to the past for company have a to come. be in transformed Over five renewable in technologies years have a that advantage us competitive our innovative leader invested we and will give

collaboration had fuels. sustainable Central Day will Northvolt increase to a a economies strategic it the number and to two landmark America in Although Investor the I support detail from technologies Google since significant of LNG between we with new which the and leading heavy in more describe away Fluence significant transition European later. in a than achievements Caribbean has those and been sales announce, deal less of develop our systems battery battery in to A including months supplier

have we and for me that substantial achieving those objectives. the First the strategic progress made our lay year-to-date priorities out XXXX for let

for further to basis. of carbon Turning Two, the the for contracts launch Three, X gigawatts key hourly one signed on for five our renewables. an product Slide, goals free energy year are XX-X of through And technology excess Central our portfolio. continue five, ESG transformation LNG of Caribbean. the the platforms. America to improve our positioning capacity monetize our the unlock value and in Four,

signing to to are last am I of report we that pleased signed Turning for set X with energy Slide year-to-date, X we and including exceeded X of by goal gigawatts of landmark goal a and to Today. gigawatt that gigawatts. a moving. renewables to This year, we've XX% storage. deal already X target PPAs year increasing a X.X

or on of consisting of As we increase in This agreements XX% Slide under projects capacity. X.X growth have signed you PPAs. or power X, gigawatts can in purchase already capacity to our a equates see total our of XX% installed construction a under backlog renewables and renewables

Turning to Slide X.

the more United renewable is increase pipeline and of we, to growth have projects our support XX a to continue We gigawatts policy a ensure expect of demand and continued customers we for taking With favorable and the increasing States. much steps competitive from grow more to corporate half What global of pipeline projects. of advantage. a to renewables our than now need we're which dramatically environment,

to X. Moving Slide

AES a hourly carbon centers first with an the a carbon energy Google's meet To supply source datacenters agreement this gigawatts basis. optimized XX-X This of Virginia-based a supplier the portfolio kind megawatts XXX from years. the XXXX. announced renewables. data will goal in solar, is free The of product first storage on to PPAs landmark the Under measured of from key structure hourly an energy that of free new in we that XX-X battery week, energy and launch XX a its free of portfolio to of become matches agreement and energy resources. energy will innovative this carbon customer's load year earlier hydro Ensuring on will this wind, end, with supplied next energy second an carbon standard Our energy for customers carbon signed free for commercial come sole free industrial basis targets has XX who needs. the when that for

more customers we of leadership than substantial we renewables objectives. is possible. XXXX. seen on with this make almost demonstrate Google free already portion of XXX in that new we've growing And will XXX at RE significant Investor companies fact, our the by large interest serve This XXX sustainability a to Based As Day transaction discussed carbon up standard gigawatts number are a we that And well expect higher to clients. placed pursue our of from XX-X a we position, need market.

our X, Slide technology value third key further platforms. to Turning to unlock our of goal is the

energy Uplight low-carbon on the with and company a that utility than businesses of the consortium is by and is works access led more directly Uplight a shift In at with of March, solutions households to XXX raise has forefront to million the a platforms software Uplight One and capital Electric Schneider X.X US. efficiency, the digital announced and these cloud. billion. in at valuing we

XX. Slide to Now

leader a our venture We a industry engine. on Fluence is capitalize Siemens other This well. our is Fluence its XX% enabled positioned through technology the grow increasing storage, component competitive energy with well in to dynamic key joint its annually to of expected including immense and value opportunity platforms distinct which advantages this of leading transition. energy are AI seeing in global are many as is

agreement to house an as can validated solution have Fluence on has manufacturer is Panama example see the XG which and guide last company, in to technology. Turning This with rank insight. Northvolt XX. utility battery Slide European projects and continued This as and cuts Fluence battery the Slide one seen energy developer Chile. by month density X/X. by may Similarly, have leading We announced the see of you technology innovation, time the is of prefab assured scale as been next-generation a progress for supply Australia, now XX, number to consistent rapid according we multi-year you XB technology construction double the and energy our storage co-develop

solar in the significantly in areas. including We technology Or Puerto greater XG cyclone our it's proposition the Rico. energy to value winds will speed provide adoption business hurricane out will be, proven XG prone X of security. resilience Proving Category up of in could unique

work the we large-scale first the the ammonia green based approval Hemisphere in continue Lastly, Western in Chile. to of plant towards hydrogen

dramatic undergone sector. we XX Slide the transformations to our Moving have one in most of

achieve announced recognize years, capacity sale of do or gigawatts one to total XX.X have XX% retirement furthermore, we of more work to set past of our ambitious from in from by XXXX the largest coal we or five of company. zero a any goal most electricity we the reducing expect power of of our goals the and generation less XX% the have one We that by to of XXXX emissions Over generation reductions than sector. have net our coal coal of

anticipate in As additional continuing We near-term being growth indices. our in we decarbonization and oriented achieve included targets ESG renewables.

costs BTUs that take-or-pay reached an XX Slide available This capacity Dominican a Panama tera to additional for total bring tera contracted of will almost contract. and Republic of LNG in There remaining. are our services throughput capacity the XX to month, XX-year terminal see the a with for under renewable can to terminal we an as future more XX%. energy natural Finally, agreement provide markets reduce fuel overall we XX lower transition work as power. emissions and turning gas Last BTUs

We the expect next to sign of in years. couple

providing responsible LNG which missions on entire business LNG soon as lowest Green environmentally chain. the supply LNG of the is focused ensures as the or feasible Our levels throughout

to Pimenta, turn our CFO. would call the like Now Gustavo over I to

Gustavo Pimenta

Thanks good Andrés and morning everyone.

we strategic we achieved a milestones year off mentioned, start good are on Andrés Day. that Investor having this and As our the financial significant towards discussed to already objectives

also the encouraged in economic continued recovery by across with line are levels. demand our pre-COVID markets with We

Turning the quarter. results to our financial for

see very last expectations million and the BXC for can to drivers in and with adjusted performance. XX was the in which of line our quarter on following the or year contribution the Slide year's key you first discuss results was similar much our pre-tax slides. $XXX I'll for quarter outlook As

energy CCGTs. for to and from from the legacy Strategic is At Chile. $X.XX adjusted South [ph] megawatt interest at expense Republic the combined year. The in quarter the plant barge plant opportunities. decrease or the a the PTC $X.XX adjusted our our higher Lower was tax of contributions the primarily at driven lower adjusted energy $XX since Southland generation impacts down both commencement by the formerly in at PPA EPS SBU, as quarter. million $XX Southland PPAs spend outages slightly back clean turbines our by as Business higher benefits was at lower units Results we was reflect the to online effective at accelerate Guacolda With million versus MCC, business Panama. hydro AES essentially EPS and offset SBU, Colombia. this Slide rate or facilities with BXC higher in utilities, of also by There earnings America known Andes in offset Mexico primarily growing market or PTC result $X.XX the last [ph], as the of Mexico AES given These In flat. development and our lower XX higher by PTC and from or Turning the down we the pipeline mostly due Domenic the partially our Hamer equity cycle partially contribution gas was US Caribbean America Units were from in driven a two impacts Central reflects XX in expiration Chivor already were and April.

Finally Bulgaria in lower and expense Eurasia our businesses. performance reflects improved interest in operational higher PTC

$X.XX to Slide our of we range EPS XXXX XX. full-year achieve to guidance results, quarter on $X.XX our to track Now With . are adjusted first

the quarterly XXXX five last consistent is of earnings average with years. expected profile Our the

businesses in the driven typical half year to and by and levels. normalization of go benefits the Reduced in during weighted back-end backlog year repowering coming earnings interest of Our half. new expense, contributions from the months. savings in roughly of the is the quarterly nine the full pre-COVID the project, operations of years including be to Southland with next online first second the Growth cost occurred XX% gigawatt of the in primarily will Med the from remaining projects a earnings more X.X our

our XXXX. to annual through average reaffirming growth X% also are target X% We expected

including credit commitment of rating investment of validates credit the action This notches S&P. XX, our to to grade turning Slide the on last discussed three and and to three from improving metrics top the remain In rating one two four our our Fitch credit upgrades priorities. metrics. our Day, our strength obtained at model Now years agencies, from business our we Investor profile as credit of strong

We continue metrics credit metrics positive by momentum BBB flat these strategic expect the in to enabling the XXXX.

Slide our proceeds discretionary allocation of Investor $XXX to the reflect billion our plan million the Now cash just of Dominican capital closed the $XXX including of parent million parent-free at table the [ph] and XX. discussion with Republic which approximately of Consistent on total in $X in Day XXXX flow sources sale cash from the April.

of our successful $X Sources raise current the units in for fund equity growth issuance to of the through also plan need equity Eliminating June, March. XX. any include additional billion the

and go helping our the us on to year. share plan is dividend, to and the December $XXX consists renewables, increase X% uses $XXX going invest billion our including the and $X.X returning the million increasing summary, fleet to this $X.X first right common we'll announced billion investments of of the year. And hand of over transition. grid we XXXX. and the to US our the in quarter, we base we fund achieve LNG from utilities in reflecting approximately will to XXXX our of roughly half into Now that, support renewable, I'll opportunities back investments for carbon call green units. our and and the in be turn remaining of in innovative growth investment approximately of attractive our for equity are side of in the goal about towards proportion of to X/X This coupon by that investments earnings renewables to success accelerate US during subsidiaries, to for utilities are growth In XX% About million rate XXXX. focus Approximately global a continued on other Andrés. the investments In expected businesses XX% on our XX% capitalize the the of With more are global as with expectations than opportunities. from US origination energy and X/X we in The modernization. to invested renewables XX% which our our shareholders

Andrés Gluski

Gustavo. Thank you,

summarize today's let Before your questions take call. we me

transition As goals great leadership through on and long-term see our growth our XXXX. further our the and noted reaffirming we of to customers progress I I tremendous and We a we that have value unlocking to XXXX expectations our the for are new businesses as benefit up like unfolds. With opportunity renewables industry will guidance call questions. increasing open made we to have the and that From and investors. have advancing XXXX our strategic competitive our continue to a technology your advantage would technological

Operator

from the from of JP go line [Operator Sunderland Instructions] The ahead. Morgan. question Richard first is Please

Richard Sunderland

Hi, good morning. questions. taking my Thanks for

this the work curious North curve? and sort energy start development agreement the maybe further on market front more the broadly the itself kind off on is more of up to what or Fluence wanted iterative the storage Just be and could development of it and installment

Andrés Gluski

is a great agreement battery with we to This really that's have as essentially a strategic landmark manufacturers. question. Yes, relationships move

So new Poland in in for producing Northvolt Sweden. is batteries And plant us. and the have building train we Poland in of plant one a will

this growth will be demand only batteries real to supply a have in not Africa Europe, as market I also our we would with you addition, and will also for East, markets. And again Northvolt. say and battery of assures one train Middle we in working dedicated of supply have and us, but So as expands this

developments So you new the battery. have in

better develops say our as So have chemistry, terms fine-tune design. as in battery stacked we cube as technology you

development joint on batteries fronts. improve of have multiple additional will We

bit to So this little prior very I involved, getting think, a integrator interesting one-step is the development a a, more providing and being a that's control of just softwares. the

Richard Sunderland

guess location know some whether you assets and for the or, right replicate energy And Google ability already. curious the know, you management would thinking I with the some about interest about thank -- And the you as agreement to C&I to separately, around customers, aspects other alongside this that angle mentioned this color. you is I itself, right have that's the having it, then, well. you about Got deal, of kind procure the

Andrés Gluski

a is. it's you explain let second part in take first, both a little so the product what me Or, know, bit sense, the

So the we're point the basis, that you on a, netting that energy. an -- product really hourly key is carbon-free know,

virtually really know, could all, know, netting, on contracts. cetera. you Prior a So, be this et is to most -- basis this, be, you are to yearly

have are to billion grows. we the are a grow lot renewables So is it's an provide you hourly you this. hydros we to had So the you guaranteed This the a getting -- buying of the real a $X are you you sorry, is know do And question storage? with how it wind? behind there's multiple know, or certain management. interest to it's that we've that, math, during solar offer, you different using overbuild non-renewables sources wind, renewables. optimize lot of I ensure production think have an is hours, there energy do XXX corporate gigawatts So course, hydro actually is of obviously, but center using when in seen how "You excess to first lowest using hours, And uses having on but it's I'm energy in expect know, algorithms, not adding risk a we free." only you this other actually data and other one ask that these know, you you you're you you multiple -- are of battery purchases you hourly a are as carbon When an know, And renewable and during know, netted the key deal So question really when the So it's you saying, on carbon-free of make solar? just right of, to the lot small don't adding, -- a that of of happen these you this of sources energy this energy, overbuilt itself, -- manage the that cost? minimize of Google demand of agreement When from. you carbon not know, really know, course, to free, But, interested cost clients -- basis? basis,

goals, say really on product saying, the as their So up an people, well, and environmental I is net and market. would on the going to This a be hourly we're global carbon netting. having emissions scale, only zero really

course, have product. that of environmental companies in interested the So, standards highest those are this

and clients. to a multiple So a with very think, we expect that one we interesting development, replicate it's --

Richard Sunderland

today. Thank for time the Great. you

Operator

you. Thank

Please comes question ISI. from Durgesh Next Evercore ahead. Chopra from go

Durgesh Chopra

Hey. my wanted Maybe question. start target. with just taking team. for -- morning, Thanks to X.XX Good I the

were this sort I now now expecting understanding to it start? you you [ph] instead to Analyst it's [ph]. of know, year. gigawatts that had X PPAs of You I'm the targeting Analyst Is And want X Day, seems guys like XX you're a strong because that at of And just three sure four Day? just correctly. make

Andrés Gluski

yes, three seeing progress. We're strong but in start, you XXXX. have But, only not did mean, inside deals know, the in we and we XXXX I a PPAs,

confident at So know, sufficiently we say X range [ph]. to of be the you upper of our or feel expect X that, guidance initial we end to

XXXX. to expect and of we gigawatts be in So new four PPAs renewable signed

Durgesh Chopra

sort That's market. clarifying thoughts your there's, can And you of lot players Maybe the domestic perfect. a competition. Thank there's all Andrés. us, obviously, for this on in that, get -- I of

Maybe a sort with these know, just advantage? and the you what's what's sort PPAs, your lot you compete any competition of of of, like competition. seeing competitive international You're as thoughts

Andrés Gluski

of lot competition out a see, do we the know, there market. -- All you in

offer to to value been our has strategy clients. more Our

PPAs. you far, to just want commoditized, renewable for know, thus, don't we So compete

course, A.I., renewable So, enabled energy sources, engines, have the leader we example with a you bidding know, applications the together of bidding And, only knowledge of -- energy perfect a and really in -- sources design, multiple energy but do influence you very for So brought client. unique we how we storage, been new of combine them? know, and not we several of have provided through in to demanding the our competitive deal advantages. Google new terms how is a a storage, product energy

So that's our angle.

I angle client? things Our think that bring is our these value clients. for importantly, really with How know, how we we And very create is more you together? we co-create the

So that, like with reflects with did It's offering. the than more cooperative. we work. first was Google you what a We it XX/X co-developed a Kauai, project of utility this really of year's in know, storage the sort joint Island product solar energy just Kauai what sort was

So unique that's angle. our

So like a just with and product. provide and we ways to more commoditized again, value, deal, more Google this see clients deals not more of working

the advantage So, our working other is, we pipeline. we have started on

So we pipeline of have globally. gigawatts, a XX

than more an of can pipeline are not What XX a projects that gigawatts execute we across And, the a equally defined we in mean you these pipeline, have We know, on. is term pipeline players. U.S. all

bank, been in we've solar best buying been you a getting interconnections interconnection irradiation, grid. wind we've know, the overlay addition, land have rights, we of really So we've land, the And best best been buying land rights, sites. at like with looking

that something markets, big be New think we feel where very in other So Google whether we be can I don't present. York, you mean, like we in presence, Virginia, people we it's together have other can something whether California, for replicate it know, it we that good. did putting

So well we to energy is mention XB also I very new. us some situated. have One double XB, angles allows I'll are don't that very have, people that other density. think the And we're

people we a if can you a XX, it about the megawatts other in that it third in we do it need locate think to can energy, time. space, XXX build do can in of So of

hurricane is XB, has solar early prove category the it down only something winds. know, you to life Australia, ones in it in but four And characteristics, development. of has have Now and But unique it actual massify still the costs tested to that's We do. been conventional not situations, stage like in cannot its that MAVERICK I've mentioned, product out. still drive

very way a with offering together technologies, of So suite clients. this we also them and optimistic way unique feel of of of working bringing a and unique also

Durgesh Chopra

Thanks Andrés. you color, jump Thank great. back queue. for the Lots exciting That's that I'll for the in talk. time. of

Andrés Gluski

Thank you.

Operator

is Please Morgan Thank Stanley. question you. go the Stephen next ahead. from The from of mind Byrd

Stephen Byrd

Hey, good morning.

Andrés Gluski

morning, Steve. Good

Stephen Byrd

chain through agreement respect renewables Northvolt get regularly whole to you impacts stresses. throughout sort shortages, one chain stresses questions supply Wanted We the you solar, system I class you I put you across the stores, any example of value know, for know, on just et ways guess, increases, many the chain of availability. But, any that cost and that is broadly talk about, cetera, ensure cetera. broadly? all know, balance Are across, you supply of you've, seeing et from that

Andrés Gluski

great very question. as think, we've that's about a you know, I concerned been, No, always And this.

talk You of beginning know, you chain, the supply to, the effects we know, here you last we know, the of in were time, know, possible you Asia, the on when year, supply look, said at and we COVID from States. and COVID concerned even about about

So, we any this. we've solar supply on panels, whether top be right it it not whether on turbines. constraints, see But wind real seeing on know, be batteries, been we're whether you now of on

in in, look future. could what are are And agenda. reflected about, increase you at the utilities example, seeing that if the energy demand. they're we plans be growth Biden's And for talking a in you a However, problem that dramatic renewable see that the think

land could ahead how there we're megawatts supplies you physical is But it know, things meet only know, So that, land, for you getting know, I like this out great need. it's you And, of readily talking be not we're you to know, this. of many available think, example, the about.

not strategic top that's making now, what safe. agreements And of it on Northvolt. kind we're the like So But right seeing we're it. we're of

about you market think, And You expect have to it very that don't the now, thinking land say people, that, we spoken it see whether we've is know, grow know, in know, would energy be expect because more, role angles, a storage, this we think constraints. key all we at rapidly. you eliminating to I And transmission I and I you -- in a about playing past, interconnections? think be element.

that's exciting that be area And really, new that. an developed. So isn't to needs

We're answer, in if to be to future, pinch there seeing I possibility. sometime not XX I know, for it be So on months. getting you top we're a months know, to your But the of expect we're when be today. it. don't could XX that preparing do going

Stephen Byrd

And helpful. XB, really you you've know, spoken gears to maybe this about That's shifting before.

that's you like You something is laid this similar own you monetized is broadly is this it your out time? be as market be that again how this today. -- broad how approach a given And thoughts I'm could just about this be? to more that other terms over and that could over is growth candidate purposes potential something for going sell? monetize, broadly of in the this curious, can whether think is another How a technologies this is your time? XB, develop of Or And that just latest beneficial to you there

Andrés Gluski

You the love know question. I

So we've counting companies, -- had you more know, in billion valuation. than small with know, four fact you unicorns, my $X

create applications. new sauce secret really massive platform The we billion. I of them know, you and And one, $XX them think $XX for companies. we to them worth buy investment, our has give -- sauce? some secret then million, work sauce what's the we to than bought now And is for, small expansion; more million, with a initial are secret $X been two,

this like we co-developing new just technology. and are it's a So client, we're uses not creating for

equally of So to it able it we important, grow keep we But to these allow businesses. fast, we're areas. entrepreneurial grow to spirit new allow the

smother make words, real company, we're let own. know, other on as possible big you run a in not their them a to So as though and we even effort much them,

them new Now, it gives a down this we advantage that to costs. ago, our buying own drive of the decision while use a made us platform, really And, with massive technology. on limits to lot a frankly, years growth do has temporary quite this philosophical just to that of

know, a we because storage You is energy today, massified cheaper lot it.

we You in XX have bidding we're systems, platforms. X.X XX we're in either know, that or gigawatts countries, we control providing built, know, you countries

learn you -- large that. So, to that's know, us allows from that's and quite

with So XB, the it's same.

You be broader will certain exclusivity in know, overtime. kind available market But, markets. to have the certain will this no, we of

So what we're massive, other proving it, we it it doing out. as eventually, to again, available well. buying with players will, will then XB is And be

Australia, be today other that are for example, just to be ourselves, And we ventures, know, broadly. be fluids, it but So have, it similar just energy it our using XB very whether not to you philosophy keep own like whether see technology. I it [ph] that, keep know, to people is in our our it prior it whether it you platform, up expand distributed more

selling creating them. the time there you value shifting cash value we of have to but money and in fuels renewables cetera. So, creation But is and so same from is to the companies, can it's these at money make are we in to and we per the those different et on a value us our different and interesting; for value we're make shareholders valuation share two important flow, why, One technology ways. maximize which parties new third earnings fossil that's our platforms,

deal. to is fact have provider. budget link is that wouldn't value. having leading-edge create the Now startups these us the that AES as mutually really we They help didn't them to done the between a we batteries We beneficial of have help have, we key knowledge be we If and grow. I because the said technology

here companies. ways creating So there these value we're that new are two with

Stephen Byrd

Really Thanks much. helpful. so

Operator

ahead. question is next from Please The the line Research. of from Peters Wolfe David go

David Peters

beyond similar curious still the that reach? wondering of just Alliance working guys scope on I'm just I far guys. morning the on dealer of good alliance Hey, with strategic are was kind expect I to you particular you Virginia. and guess Google, how agreements locations

Andrés Gluski

which is have say can to of agreement, gigawatt an I that that willing developed you that we say had if the the one we really I had initial talked about deal announced. really would What we we has, that sort RFP for

over and clients provided in time as We this expect then again, stage this offer grow have unique that of we their will that we to at and energy other to expansion product needs time.

I this at can that's the of So all really game. stage say

David Peters

then And have Chile the other Investor we're of maybe products on LNG CCGT in there been projects, guess I you the just Day. hydrogen the in updates or any Vietnam, Okay. and on since some works. in study Is the

Andrés Gluski

ammonia regarding project first the green green Chile. Look hydrogen really in

continue partner work feasibility We on study. with to our the

So way on have of I one end said, it or where as the before goes we'll year probably the the and news other.

down we be hydrogen cost So get or of, blue with the it's really products. matter competitive grey to can a

So I'm stay tuned. optimistic, we're working hard,

Regarding thing. Vietnam. the It's same

We LNG be new would or towards XXX work to so Terra BTUs. terminal, continue which a

So, between Republic, we combined Panama watts Dominican cycle than gas the gig X.X is of what an double more and have associated there plants. and

So that other production soon plants, natural certified I of government's heavy that important doesn't, amount advantages fossil which from and construction providing that at also were feasible basically less really the reap delivery, of part gas versus very means of this and has avoid on say hydrogen, plan we leakage facility think coal to as realize mentioned it to will climate continues it progress as a certain that the that will towards, it we fuels. of that's the many be not many, green moving

David Peters

for your you Great, thank time.

Operator

Charles go Thank ahead. you. next line Please from question of is The Morningstar. the from Fishman

Charles Fishman

help that price crude project you in that a in you'd think. recent would plants strength first morning, I that? in the power I there crude the And questions strength all of coal prices to Vietnam in the development be oil up in the follow replacing that some wanted region. lot of oil appreciate competition, for is I it Vietnam. of there of least or Good on yes but then at Andreas. help residual that fuel is generation

Andrés Gluski

business in the is Our RLNG America Central really tolling and Caribbean.

get of margins tolling we and at the a will the tolling taking between So spread in course fee. more especially not the take-or-pay oil commodity now risk direct We're lot the WTI, these Henry Hub of prices do bigger agreements. world a

announced or pay. So what is we've take

running because relying unlike Republic on it to more. some that's at favorable, had develop this and they all do demand natural gas an immediate being say a bigger So Vietnam but this a needed will, margin, been and to very we're not Panama, In offshore we demand things project directly so where spread oil is equal, is so has Dominican gas affect which and is had will [ph]. between out, much the

So gas to you to bring cycles. combined have the existing feed in

demand So as I forms, there, These directly could much tolling really don't doesn't to convert really. play. see or but be created natural as Vietnam, the have it gas oil to margin, it you industries at Again have more as were transportation the converter and other but price more is [indiscernible]. as agreements again, compressed not in gas

Charles Fishman

recall, I As enter that's the XXXX through the events doesn't into Vietnam correct? project and beyond XX really X.X%

Andrés Gluski

correct? That's

Charles Fishman

have. all That's you. I thank Okay,

Operator

Thank our to conference Pasha for you. back Please this turn gentlemen, I Ahmed like concludes and closing the comments. Ladies session. question-and-answer would ahead. go

Ahmed Pasha

everybody today's you for Thank us on joining call.

answer As great follow-up be may available you always, questions the IR have. to have again day. will team Thanks and a any

Operator

Thank concluded. now the and ladies gentlemen, has you Thank conference attending presentation. much, today's you for very

Thank you. disconnect. now may You

The AES Corporation (AES) 6 May 212021 Q1 Earnings call transcript