Although a more detailed assessment of the damage to its facilities is still ongoing, the Company sustained modest damage to its 24 MW Illumina solar plant and minor damage to its 524 MW AES Puerto Rico coal-fired plant, both located in Puerto Rico. One of the two units at AES Puerto Rico is available to generate electricity, while the inspection of the second unit is ongoing. The Company’s 5 MW USVI Solar I solar plant in the U.S. Virgin Islands has been materially damaged.
“Our number one priority before, during and after the recent hurricanes was the safety of our people and their families. Fortunately, all AES people and their families are safe and we have now turned our attention to assessing our facilities and assisting the impacted communities,” said Andrés Gluski, AES President and Chief Executive Officer. “We expect to have the second unit at AES Puerto Rico be available to generate much-needed electricity in the next couple of weeks. We are working closely with the communities to assist in providing humanitarian relief, as well.”
Following the hurricanes, AES has provided critical assistance to its employees and local communities in Puerto Rico. Specifically, the Company has delivered 10,200 gallons of bottled water, cleared storm debris from roads and schools and provided critical diesel fuel for generators to the Salvation Army and Guayama Hospital. AES is involved in ongoing discussions to provide additional supplies and manpower to aid in further recovery on the island.
The impact on the Company’s 2017 Adjusted EPS is expected to be $0.03 to $0.05, which is related to the damages to the three plants, business interruption and deductibles under the Company’s captive insurance policy. Accordingly, the Company is reaffirming its 2017 guidance for all metrics, but now expects Adjusted EPS to be in the lower half of the $1.00 to $1.10 range. The Company’s 2017 guidance for Consolidated Free Cash Flow is $1,400 to $2,000 million and Operating Cash Flow is $2,000 million to $2,800 million.
The AES Corporation (NYSE:AES) is a Fortune 200 global power company. We provide affordable, sustainable energy to 17 countries through our diverse portfolio of distribution businesses as well as thermal and renewable generation facilities. Our workforce of 19,000 people is committed to operational excellence and meeting the world’s changing power needs. Our 2016 revenues were $14 billion and we own and manage $36 billion in total assets. To learn more, please visit www.aes.com. Follow AES on Twitter @TheAESCorp.
Safe Harbor Disclosure
This news release contains forward-looking statements within the meaning of the Securities Act of 1933 and of the Securities Exchange Act of 1934. Such forward-looking statements include, but are not limited to, those related to future earnings, growth and financial and operating performance. Forward-looking statements are not intended to be a guarantee of future results, but instead constitute AES’ current expectations based on reasonable assumptions. Forecasted financial information is based on certain material assumptions. These assumptions include, but are not limited to, our accurate projections of future interest rates, commodity price and foreign currency pricing, continued normal levels of operating performance and electricity volume at our distribution companies and operational performance at our generation businesses consistent with historical levels, as well as achievements of planned productivity improvements and incremental growth investments at normalized investment levels and rates of return consistent with prior experience.
Actual results could differ materially from those projected in our forward-looking statements due to risks, uncertainties and other factors. Important factors that could affect actual results are discussed in AES’ filings with the Securities and Exchange Commission (the “SEC”), including, but not limited to, the risks discussed under Item 1A “Risk Factors” and Item 7: Management’s Discussion & Analysis in AES’ 2016 Annual Report on Form 10-K and in subsequent reports filed with the SEC. Readers are encouraged to read AES’ filings to learn more about the risk factors associated with AES’ business. AES undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Any Stockholder who desires a copy of the Company’s 2016 Annual Report on Form 10-K dated on or about February 24, 2017 with the SEC may obtain a copy (excluding Exhibits) without charge by addressing a request to the Office of the Corporate Secretary, The AES Corporation, 4300 Wilson Boulevard, Arlington, Virginia 22203. Exhibits also may be requested, but a charge equal to the reproduction cost thereof will be made. A copy of the Form 10-K may be obtained by visiting the Company’s website at www.aes.com.