ARLINGTON, Va.--(BUSINESS WIRE)--The AES Corporation (NYSE: AES) today announced a reorganization as part of its ongoing strategy to simplify its portfolio, optimize its cost structure and reduce its carbon intensity.
“Our new structure will accelerate our transformation to an energy company of the future. These changes will allow us to quickly capitalize on opportunities by delivering safe, reliable and affordable energy solutions that create shareholder value,” said Andrés Gluski, AES President and Chief Executive Officer. “Today’s announcement continues the progress we have made to-date on our strategy, including focusing our geographic footprint down to 16 countries from 28, implementing our previously announced cost savings initiatives, and reducing our carbon intensity by bringing new energy solutions to the markets we serve.”
Reflecting AES’ simplified portfolio, AES is consolidating its five Strategic Business Unit structure and will now manage its global operations and infrastructure activities under Executive Vice President and Chief Operating Officer, Bernerd Da Santos.
The Company also has reorganized its growth and commercial activities into three new units. These units will be led by three existing executives:
- Executive Vice President and Chief Financial Officer, Tom O’Flynn will continue in his current role and assume additional responsibility for leading the US Renewables growth unit;
- Manuel Pérez Dubuc will lead a consolidated South America growth unit that includes Argentina, Brazil, Chile and Colombia; and
- Juan Ignacio Rubiolo will lead the Mexico, Central America and the Caribbean growth unit.
The new leaner organizational structure reflects the simplification of the Company’s portfolio and cumulative investments in IT, and will result in a lower headcount and overhead costs. This initiative supports the Company’s objectives of achieving investment grade metrics by 2019 and delivering attractive returns. The Company will provide additional detail on its upcoming Fourth Quarter and Full Year 2017 Financial Review Call on February 27, 2018 at 9:00 AM Eastern Time.
The new organizational structure will also accelerate the application of new technologies in AES’ existing businesses. With the acquisition of sPower last year, the largest independent solar developer and operator in the US, the launch of Fluence, the Company’s Joint Venture with Siemens and a leading provider of battery-based energy storage around the world, new renewable projects in development or under construction in the US, Mexico, Brazil, El Salvador and Jordan, and the addition of an LNG terminal and gas plant currently under construction in Panama, AES is delivering on its goal to reduce its carbon intensity and accelerate a greener energy future in the markets it serves.
The AES Corporation (NYSE: AES) is a Fortune 200 global power company. We provide affordable, sustainable energy to 16 countries through our diverse portfolio of distribution businesses as well as thermal and renewable generation facilities. Our workforce 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 27, 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.