AES Andes' H1 2021 bottom line hit by decarbonisation, gross profit spikes

Author: Ken Teegardin. Licence: Creative Commons, Attribution-ShareAlike 2.0 Generic.

August 6 (Renewables Now) - South American power company AES Andes SA reported a USD-266.3-million (EUR 225.5m) loss of attributable earnings for the first half of 2021, after having to recognise significant impairment of assets for committing to close thermoelectric power plants in Chile.

In the same period a year ago, the company posted a USD-137.7-million attributable profit.

On the operating side, AES Andes recorded a gross profit of USD 619.1 million, up by 125% year-on-year, and a revenue growth of 34% to USD 1.49 billion.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) for the six-month period arrived at USD 688.4 million, rising by 86% on the year, AES Andes said in its earnings report.

The Santiago-based AES Andes directs operations in Chile, Argentina and Colombia for US group AES Corp (NYSE:AES).

Key figures from the three markets are presented in the table:

In USD thousands unless otherwise indicated: H1 2021 Y/Y change:
-- total operating revenue 1,267,088 37%
-- total gross profit 513,425 113%
-- total energy sales 8,208 GWh unchanged
-- total generation (coal, hydro, biomass, wind, solar) 6,682 GWh -6%
-- total operating revenue 181,620 20%
-- total gross profit 92,919 270%
-- total energy sales 3,531 GWh 57%
-- total generation (hydro+solar) 2,137 GWh 133%
-- total operating revenue 46,357 21%
-- total gross profit 13,558 41%
-- total energy sales 2,469 GWh 24%
-- total generation (natural gas only) 2,049 7%

AES Andes has continued to reduce the share of coal and fossil fuels in its generation portfolio in favour of renewables, either through early retirement or sale of its coal-based capacity.

The company is currently building over 1 GW of renewables in Chile and Colombia. In Chile, construction of most of the projects will be finalised by the end of 2021.

In Colombia, AES Andes’ 61-MW San Fernando solar project is expected to reach commercial operation date in 2021, the company said.

At present, AES Andes operates over 5 GW of diverse generation assets across Chile, Colombia and Argentina.

(USD 1.0 = EUR 0.847)

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Sladjana has significant experience as a Spain-focused business news reporter and is now diving deeper into the global renewable energy industry. She is the person to seek if you need information about Latin American renewables and the Spanish market.

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