Aes Corp 8-K, filed Jul 7, 2021
Aes Corp (AES)
8-K
2021-07-07
For: 2021-07-06
View Original
Added on
April 09, 2026
About this 8-K
Aes Corp filed this 8-K on July 7, 2021, reporting on events of July 6, 2021.
Items reported
- Item 2.06: Material impairment
- Item 7.01: Regulation FD disclosure
- Item 9.01: Financial statements and exhibits
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
_______________________________________________________________
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (date of earliest event reported): July 6, 2021
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(Exact name of registrant as specified in its charter)
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| (State of Incorporation) | (Commission File No.) | (IRS Employer Identification No.) | ||||||||||||
(Address of principal executive offices, including zip code)
Registrant’s telephone number, including area code:
(703 ) 522-1315
NOT APPLICABLE
(Former name or former address, if changed since last report)
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
| Securities registered pursuant to Section 12(b) of the Act: | ||||||||
| Title of Each Class | Trading Symbol(s) | Name of Each Exchange on Which Registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
| Emerging growth company | |||||
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Item 2.06 Material Impairments
On July 6, 2021, AES Andes, a subsidiary of The AES Corporation ("AES" or the "Company") announced that it entered into an agreement (the "Andes Agreement"), committing to accelerate the retirement of Ventanas 3 (267 MW), Ventanas 4 (272 MW), Angamos 1 (277 MW) and Angamos 2 (281 MW) coal units, built between 2010 and 2013, in Chile.
In connection with these strategic developments, on July 6, 2021, AES concluded that a pre-tax impairment charge in the range of approximately $500 million to $550 million, associated with Angamos and Ventanas coal facilities, is required to be recognized as of June 30, 2021 in accordance with U.S. generally accepted accounting principles ("GAAP") related to the accounting for property, plant and equipment, which will reduce the carrying value of these assets to their fair value. The impairment charge will not impact the Company's cash flow or cash balances and is not expected to result in any material future cash expenditures.
Management expects to conclude its assessment and finalize the estimation of the impairment charges along with the assessment of the potential impact to income tax expense with the submission of its Form 10-Q for the quarter ending on June 30, 2021.
Item 7.01 Regulation FD Disclosure
On July 6, 2021, the Company issued a press release announcing the Andes Agreement. The transaction does not affect the Company’s previously issued guidance and longer-term expectations. A copy of the press release is being furnished as Exhibit 99.1 attached hereto and is incorporated by reference herein.
Such information is furnished pursuant to Item 7.01 and shall not be deemed “filed” for any purpose, including for the purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that Section. The information in this Current Report on Form 8-K shall not be deemed incorporated by reference into any filing under the Securities Act or the Exchange Act regardless of any general incorporation language in such filing.
Safe Harbor Disclosure
This Form 8-K 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 expectations regarding the COVID-19 pandemic, 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 the execution of PPAs, conversion of our backlog and 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’ 2020 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 2020 Annual Report on Form 10-K filed February 24, 2021 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 also be obtained by visiting AES' website at www.aes.com.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
| Exhibit No. | Description | ||||
| Press Release issued by The AES Corporation, dated July 6, 2021 | |||||
| 101 | Inline XBRL Document Set for the Cover Page from this Current Report on Form 8-K, formatted as Inline XBRL | ||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | ||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf of the undersigned hereunto duly authorized.
| THE AES CORPORATION | |||||||||||
| Date: | July 6, 2021 | By: | /s/ Gustavo Pimenta | ||||||||
| Name: | Gustavo Pimenta | ||||||||||
| Title: | Executive Vice President and Chief Financial Officer | ||||||||||
NEWS RELEASE
Media Contact:
Gail Chalef
gail.chalef@aes.com ▪ 571-833-8804
AES Announces More Than 1 GW of Coal Retirements in Chile
Action Demonstrates Continued Progress in Company’s Overall Decarbonization Plan and Commitment to Chile’s Responsible Green Energy Transition
Arlington, VIRGINIA (July 6, 2021) -- The AES Corporation (NYSE: AES) today signed an agreement with the Government of Chile, represented by Chile’s President Sebastián Piñera, together with Minister of Mines and Energy Juan Carlos Jobet and Minister of the Environment, Carolina Schmidt, allowing for the closure of 1,097 MW of coal generation as soon as 2025. Signed at the Moneda Palace in Santiago, this agreement represents the single largest coal retirement announcement by any power company in Chile to date and includes roughly 20% of the country’s installed coal capacity. Under the terms of the voluntary retirement plan, AES will retire the units as soon as January 2025, subject to the requirements of the power grid.
“The retirement of these conventional assets will remove approximately 6 million tons of CO2 from the atmosphere, the equivalent of taking over 2.4 million cars off the streets of Chile,” said Andrés Gluski, AES President and CEO. “Our purpose is to accelerate the future of energy, and AES Andes is a great example of how we have committed to responsibly decarbonize the Chilean electricity sector, working constructively with the authorities and our customers.”
This announcement represents another important step forward in AES’ strategic decarbonization plan, which includes both the sale and retirement of coal assets along with rapid expansion in the deployment of renewables. This agreement complements AES’ plan to invest $3 billion to build 2.3 GW of renewables and energy storage through 2024 in Chile and Colombia.
Globally, AES has announced the sale or retirement of almost 12 GW of coal capacity. Earlier this year, AES announced a target to reduce its generation from coal to below 10% on a pro-forma basis[1] by year-end 2025 and set a new goal to reach net-zero emissions from electricity sales by 2040. Today’s announcement is consistent with the Company’s long-term plan and will have no impact on its 2021 guidance or expectations through 2025. Accordingly, the Company is reaffirming its 7% to 9% average annual growth rate target through 2025, from a base year of 2020.
About AES
The AES Corporation (NYSE: AES) is a Fortune 500 global energy company accelerating the future of energy. Together with our many stakeholders, we're improving lives by delivering the greener, smarter energy solutions the world needs. Our diverse workforce is committed to continuous innovation and operational excellence, while partnering with our customers on their
strategic energy transitions and continuing to meet their energy needs today. For more information, visit www.aes.com.
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 expectations regarding the COVID-19 pandemic, 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 the execution of PPAs, conversion of our backlog and 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’ 2020 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 2020 Annual Report on Form 10-K filed February 25, 2021 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
.
[1] Based on annual generation in MWh from the portfolio as of, or expected by, the relevant date, adjusted for: (i) (+) generation from new assets added to the portfolio; and (ii) (-) actual generation from announced asset sales or retirements.