AES GENER

2Q-2020 RESULTS

 

AES Gener S.A. (hereinafter referred to as AES Gener, Gener, or the Company) recorded EBITDA of US$208 million in the second quarter of 2020, 19% above the US$175 million achieved in the same period in 2019 primarily due to gross margin improvement in Chile between both periods partly offset by lower gross margin in Colombia and, to a lesser extent, Argentina.

 

• EBITDA in the Chilean market reached US$178 million, a 52% increase from the second quarter of 2019. The main drivers were the positive impact related to the recovery of expenses incurred in relation to supply contracts with unregulated customers, higher margin contributions from contract sales as a consequence of higher volumes sold to unregulated and regulated contracts, and the additional margin from new renewable assets, primarily Los Cururos, the 110MW wind farm acquired in November 2019.

 

• EBITDA in Colombia reached US$24 million in the second quarter of 2020, representing a 49% decrease over the same period in 2019. The main driver for this reduction is the 33% decrease in generation due to the drier hydrology in the system compared to the second quarter of 2019, resulting in lower water inflows for Chivor, and as a consequence, lower spot sales volume. Depreciation of the Colombian peso, negatively impacting contract prices also contributed to the negative variation. These negative variances were partially offset by higher spot prices.

 

• EBITDA in Argentina reached US$6 million during the second quarter of 2020, representing a 45% decrease. Lower capacity revenues due to lower availability resulting from scheduled maintenance in 2020, lower capacity rates associated with Res 31/2020 which took effect February 1, 2020, in addition to lower margin contributions from contract sales negatively impacted EBITDA in Argentina.

 

Net Income Attributable to Parent (“Net Income”) reached US$$62 million in the second quarter of 2020, which positively compares to the US$$55 million in the second quarter of 2019. The main drivers for this increase relates to higher EBITDA and a US$15 million increase in Equity Earnings mainly associated with better Operating Results at Guacolda. These positive variances were partially offset by higher financial expense of US$12 million in the second quarter, associated mainly with higher interest expenses from corporate bonds, a US$17 negative effect in FX differences related to losses on FX derivatives used to hedge the exposure to the Colombian Peso and fixed costs in Chilean peso, and a US$18 million decrease in Income Taxes mainly due to higher taxable Income in Chile.

Below you will find the Earnings Report for the second quarter of 2020.

CONSOLIDATED FINANCIAL SUMMARY

Financial Summary (ThUS$)	YTD							2Q
	2020		2019		Var (%)			2020		2019		Var (%)
Revenue	1,114,604		1,221,794		(9)	%		572,261		587,356		(3)	%
Gross Profit	292,777		294,691		(1)	%		167,067		129,251		29	%
EBITDA*	369,852		382,380		(3)	%		207,716		174,638		19	%
Net Income (attributable to AES Gener)	137,718		118,205		17	%		61,688		54,924		12	%
Net Cash from Operations	147,124		197,322		(25)	%		79,470		58,806		35	%
Earnings per Share	0.016		0.014		14	%		0.007		0.007		—	%

 

CONFERENCE CALL INVITATION

The Company will host a conference call Tomorrow:

Thursday,  August 6, 2020, at 11:00 AM Chile (11:00 AM ET)

The Conference Call will be conducted in English and will be hosted by:

Ricardo Falú – Chief Executive Officer

Ricardo Roizen – Chief Financial Officer

Following the presentation, you will have an opportunity to participate in a Q&A Session.

To access the live webcast, log on at https://edge.media-server.com/mmc/p/kishusp2