PRESS RELEASES

Today, AES Gener’s Board of Directors agreed to call an extraordinary shareholder meeting on April 23, 2021, after the Anual Shareholders Meeting.

The extraordinary meeting will aim to discuss and approve the proposed payment of an Eventual Dividend against Retained earnings and the Proposed Dividends Reserve.

The US$ 47,705,038 equivalent to US$0.0045973/share dividend has been proposed to be paid on May 31, 2021.

For more information, please see the Material Fact published today.

Alto Maipo finishes tunnel excavation   

 

– Today marks a fundamental milestone for the project and key for the country’s decarbonization 

 

Santiago, March 4, 2021.- Today, at 11:30 am, Alto Maipo, the largest renewable energy project in Chile, completed the excavation of its 74.6km of tunnels. 

The tunnels’ excavation was carried out using state-of-the-art technology with the highest engineering standards, including TBM’s (Tunnel Boring Machine) specially designed according to the geology of this particular area of the Andes Mountains. 

 

With this new milestone, the project’s construction leaves the geological risk behind and enters its final stretch to start commercial operations in the second half of 2021. 

 

The 531MW run-of-the-river Alto Maipo project, comprised of two powerhouses (Las Lajas and Alfalfal II), is a fundamental part of AES Gener’s Greentegra transformational strategy and is key to Chile’s decarbonization. With an expected average generation of 2,200 GWh/yr, equivalent to the consumption of more than 1,000,000 households, Alto Maipo will deliver emission-free energy to Santiago, the country’s primary energy consumption center. 

 

«As we announced last week on our earnings call, today is a great day for Alto Maipo, as the completion of the excavation marks the start of the final stage of construction. We are just a few months away from starting to inject renewable energy into the country’s main demand center, and that fills us with pride and satisfaction,» said AES Gener CEO Ricardo Falú. 

 

It’s worthy to note that the Alto Maipo team achieved the South American excavation record by reaching 56.9m/d during the excavation of the Volcán tunnel, completed in October 2020. 

 

The CEO, together with Bernerd Da Santos, Executive Vice President of The AES Corporation, and Julián Nebreda, AES Gener Chairman and President of AES’ South America SBU, thanked «all the project team who have contributed to materialize this great feat of engineering.» They highlighted that «Alto Maipo is key for Chile and will have a fundamental role in the decarbonization of its energy matrix.» 

The energy produced by Alto Maipo will be added to that of the existing run-of-the-river plants in AES Gener’s Cordillera Complex (Alfalfal I, Maitenes, Queltehues and Volcán) and will be injected into Chile’s National Electric System (SEN). With Alto Maipo operational, the Complex’s potential for future expansions of the Virtual Reservoir (batteries) will increase to 1,250 MWh. 

 

About AES Gener 

AES Gener generates and sells electricity in Chile, Colombia, and Argentina with the mission of improving lives by accelerating a more secure and sustainable energy future. The Company operates a total installed operating capacity of 5,196MW in the region along with an extensive portfolio of renewable energy projects under development. The Company is the second-largest generator in Chile, with a diversified portfolio including hydro, wind, solar, energy storage, biomass, gas and coal-fired power plants. 

In Chile, AES Gener owns 3,512MW, comprised of 2,959MW of thermoelectric, 267MW of hydroelectric, 110MW of wind, 102MW of solar photovoltaic and 13MW of biomass capacity, in addition to 62MW of battery energy storage systems, seawater desalination plants, transmission lines and gas pipelines in Chile. AES Gener also owns hydroelectric and solar plants in Colombia with a total capacity of 1,041 MW and a natural gas combined cycle plant in Argentina with an installed capacity of 643 MW. 

  

AES Gener is 67.0% owned by The AES Corporation. 

To learn more about AES Gener, please visit www.aesgener.cl/investors  

Follow AES Gener on Twitter @AESGener 

AES Gener participated this week in JP Morgan’s 2021 Global Emerging Market Corporate Conference and held meetings with several investors. The presentation from the meetings during the conference is available here.

AES Gener consolidates its renewable transformation

 

By 2024 the Company will have tripled its renewable capacity and closed, sold or disengaged from contractual obligations 72% of its coal-fired generation units

 

Santiago, February 24, 2021 – AES Gener closed 2020 with solid operational and financial performance, confirming the resilience of its Greentegra transformational strategy through which it will reduce the carbon intensity of its portfolio, green the energy supply of its customers and strengthen the Company’s investment-grade ratings.

AES Gener’s EBITDA in the last quarter of the year was 65% higher than that of the same period of the previous year and in 2020 it reached a record level of US $ 1,045 million, 25% higher than in 2019. These results are due primarily to solid performance in Chile and the settlement over the early termination of contracts at Angamos.

AES Gener CEO, Ricardo Falú, stated: “the 2020 results demonstrate the resilience of our company. Despite the adverse conditions that we all face with the COVID-19 pandemic, we continue to execute our Greentegra strategy by accelerating the decarbonization of our portfolio and our renewable growth, which will allow us in 2024 to have two-thirds of our EBITDA and more than half of our installed capacity based on renewable energy.»

Falú emphasized that AES Gener will not keep any coal plant in operation one day longer than is necessary to fulfill its contractual commitments and what the system needs for its reliability. In that sense, by 2024, the company will have shut down, sold or delinked from contractual obligations 72% of its coal-fired units, significantly reducing the carbon intensity of its portfolio.

Since the launch of Greentegra in May 2018, AES Gener has signed renewable contracts for 10.5 TWh per year. In terms of capacity, it has added 221 MW of renewable capacity and batteries to its portfolio and currently has 1,133 MW under construction. Thus, by 2024 AES Gener will have tripled its renewable energy and batteries installed capacity, incorporating an additional 2.3GW to its portfolio.

Finally, Ricardo Falú reaffirmed AES Gener’s commitment, highlighting that «we will continue working together in a responsible transition towards emission-free energy sources, contributing to the decarbonization goals of the markets where we operate, accelerating the sustainable transformation of the power sector.»

 

Major 2020 Milestones

 

Greening our customer’s energy supply

During 2020, the Company signed 4 TWh per year in long-term contracts. In total, under the Greentegra strategy, 10.5 TWh per year in renewable energy contracts have been signed, providing our clients with innovative and competitive solutions to satisfy their energy needs, contributing to their sustainability goals.

 

Reducing the Carbon intensity of our portfolio

Decarbonization

– The company continued to accelerate in its decarbonization process, anticipating the shutdown of 322 MW from its Ventanas coal-fired complex. In this way, AES Gener not only complies with the voluntary decarbonization agreement that it signed in June 2019 with the Government of Chile, but also advances the retirement of Ventanas 1 by almost two years and that of Ventanas 2 by three years.

– AES Gener signed a contract to sell its stake in Guacolda Energía SpA., to a company related to the WEG Group, the current owner of the remaining stake of the coal-fired plant. With this operation, subject to the approval of the Fiscalia Nacional Economica, AES Gener will devest from the 764 MW property in Huasco, which represents 26% of the Company’s operating coal-fired capacity.

Renewable Growth

– The Alto Maipo project reaches 96% progress and there are less than 90 meters to complete the excavation of all the tunnels. The commercial operation of the 531 MW run of river hydro is expected to begin in the second half of this year.

– The construction of Andes Solar IIB continues, a project that will have the largest lithium battery storage system in Latin America (112 MW for 5 hours). The expansion will have a capacity of 180 MW, of which 10 MW will be installed with the revolutionary Maverick technology from 5B.

– In southern Chile, the Los Olmos, Mesamávida and Campo Lindo wind farms – for a total of 251 MW – continue their construction.

– In Colombia, the construction of the largest self-generation solar park in the country, San Fernando, of 59 MW for Ecopetrol, is also progressing.

– The Virtual Reservoir project, inaugurated in 2020, received the Avonni Award for innovation in the Energy Companies category, for the installation of a battery system for energy storage integrated into run-of-the-river hydroelectric plants.

 

Strengthening Investment Grade

– The settlement signed for the early termination of contracts with BHP subsidiaries, plus the incorporation of Toesca into the Cochrane property, secured US $ 300 million to finance growth in renewables.

– On February 5, 2021, the company successfully closed the capital increase process for US $ 306 million. In a clear demonstration of confidence in Greentegra’s strategy, The AES Corporation subscribed the transaction, increasing its percentage of ownership of the company to 67.0%.

– Given the solid financial strategy that AES Gener is implementing to finance its transformation, by 2024 the company will have strengthened its investment-grade ratings by achieving sustained leverage below 3.5x Net Debt / EBITDA.

 

AES Gener to sell its stake in Guacolda, accelerating its portfolio’s transformation

 

The Company will divest from the 764 MW plant, which represents 26% of its operational coal-fired capacity

 

In line with its Greentegra strategy, and the acceleration of its portfolio transformation, AES Gener signed a contract to sell its ownership stake in Guacolda Energía SpA., to WEG Group, current co-owner of Guacolda.

With this operation, which is subject to the approval of Chile’s antitrust authority (FNE), AES Gener will sell its stake in the 764 MW coal-fired complex in Huasco, which represents 26% of the Company’s operational coal-fired capacity.

The sale is aligned with the Greentegra strategy’s goals. “This transaction represents another very relevant step in the transformation of our company. It also goes to achieve the objectives of reducing the carbon intensity of our portfolio, making the supply of our clients greener and more competitive and strengthening our investment grade”, said Ricardo Falú, CEO of AES Gener.

Falú highlighted the importance of Guacolda for the system and recognized the work of its people “Our operations in Huasco have been and are fundamental for the national power grid, delivering reliable, competitive and flexible energy. I want to recognize and highlight the excellence, dedication and contribution to the country of each and every one of our team.»

The proceeds of the sale will be used to fund the Company’s renewable growth plans.

 

Greentegra strategy

Through its Greentegra transformational strategy, AES Gener is contributing to the sustainable reactivation of the countries where it operates with investments close to US$ 3.000 million in renewable projects that will generate more than 7.000 direct jobs with a focus on hiring women and local workforce.

AES Gener is adding 2.3.GW of wind, solar, hydroelectric and battery capacity to its portfolio in Chile and Colombia, between 2019 and 2023, of which 1.356 MW are already in operation or under construction.

 

AES Gener successfully concluded its capital increase raising more than US$ 300 million to finance renewable projects

– The success of the transaction reflects the confidence of investors in the company’s commitment to accelerate the future of energy making the markets where it operates more sustainable.

 

Santiago, February 8, 2021.- AES Gener completed the capital increase to finance renewable energy projects in Chile and Colombia.

In total, over 1.976 million shares were subscribed, which is equivalent to 99.8% of the total shares placed under the capital increase for a total amount of approximately US$ 306 million.

Ricardo Falú, CEO of AES Gener, assured that “the success of the capital increase reflects the confidence that investors have in the value of our Greentegra transformational strategy through which we are contributing to the decarbonization of Chile’s energy matrix and the diversification of the Colombian matrix. »

AES Corporation – AES Gener’s controlling shareholder – participated in the capital increase, both in the first preferred option and in the second, increasing its stake to 67.0%, demonstrating confidence in the company’s strategy and its commitment with Chile.

Falú explained that “the capital increase is a fundamental part of our plan to finance the transformation of AES Gener, continue building and developing renewable projects with cutting-edge technology to meet our strategic objectives of reducing the carbon intensity of our portfolio and making our customers´ supply more sustainable”.

 

Greentegra strategy

Through its Greentegra transformational strategy, AES Gener is contributing to the sustainable reactivation of the countries where it operates with investments close to US$ 3.000 million in renewable projects that will generate more than 7.000 direct jobs with focus on hiring women and local workforce.

AES Gener is adding 2.305 MW of wind, solar, hydroelectric and battery capacity to its portfolio in Chile and Colombia, between 2019 and 2023, of which 1.356 MW are already in operation or under construction.

AES Gener Successfully Completes First Pre-emptive Offer Period of its Transformation Capital Increase

  • Investors subscribed 98.3% of the shares offered in the capital increase in the first round.
  • A second Preferential Rights Period to follow.

Santiago January 28, 2021. – As part of its green transformation, AES Gener has officially completed the first preferential rights period (POP1), with shareholders subscribing 98.3% of the 1,980 million new shares. During this period, which commenced on December 29, 2020, and ended on January 27, 2021, shareholders subscribed and paid 1,946 million shares at CLP 110 each, equivalent to ~US$ 301 million in proceeds.

Today, the AES Gener Board of Directors agreed to sell the 34 million shares not subscribed nor paid at the end of the POP1 in a second Preemptive Offer Period (POP2) in accordance with the procedure set forth in the April 16, 2020 Extraordinary Shareholder’s meeting, at a price of CLP 110 per share. The second round will last five days, starting February 1, 2021, and ending February 5, 2021. For further information regarding the POP2, please see the announcement to be published in the El Pulso Newspaper on January 29, 2021.

The proceeds raised in the follow-on are part of the company’s strategy to finance its Greentegra transformation and continue building and developing renewable projects based on cutting-edge wind, solar, and battery technology in Chile and Colombia.

Save The Date

AES Gener will publish FY 2020 financial results on Wednesday February 24th, and will hold a conference call on Thursday 25th at 12:30 pm. Chile (10:30 EST).

The call will include prepared remarks on the Company’s operational and financial highlights of the year, and a question and answer session.

Internet access to the conference call and presentation materials will be available on the AES Gener investors website at https://www.aesgener.cl/investors/

For further information, please contact:

John Wills, Head of Investor Relations – Email: johnw.wills@aes.com
Constanza Lopez, Investor Relations Sr. Analyst – Email: constanza.lopez@aes.com
Maria Constanza Villalon, Investor Relations Analyst – Email: maria.villalon@aes.com

The Company requested the shutdown of Ventanas 1 and 2 as of today

 

Puchuncaví, December 29, 2020. In line with its mission of accelerating a safer and more sustainable energy future, AES Gener took a new step in its commitment to Chile’s decarbonization. Today the Company accelerated the retirement of 322 MW from its Ventanas coal-fired complex. The Company formally requested the shutdown of Units 1 and 2 of the complex as of today, December 29, 2020.

 

With this decision, AES Gener not only complies with the voluntary decarbonization agreement signed in June 2019 with the Government of Chile, but also accelerates the retirement of Ventanas 1 by almost two years and the retirement of Ventanas 2 by more than three years.

 

Both plants will go to a State of Strategic Reserve (ERE by its acronym in Spanish). They will be available as a backup to the grid if there is an energy crisis or an extraordinary situation that puts the security and sufficiency of the system at risk, in which case they could be called upon by the grid ISO, the Chilean National Electricity Coordinator (CEN by its acronym in Spanish).

 

Units 1 and 2 of Ventanas have a total capacity of 322 MW. With their retirement, approximately 2,000,000 tons of CO2 will be reduced, equivalent to removing more than 800 thousand cars from the streets of Chile.

 

This important milestone announced today is part of the Greentegra strategy carried out by AES Gener since 2018, with the purpose of accelerating the decarbonization of Chile and contribute to a responsible transition to ensure a safer and more sustainable energy future.

 

Ricardo Falú, AES Gener’s CEO, stated that these two units’ early retirement is one more example of the Company’s commitment to Chile. «The transformational strategy that AES Gener is executing includes not only the incorporation of renewable energy and emission-free capacity with battery solutions, but also responsibly accelerating the retirement of our thermoelectric plants. Our commitment to Chile is that none of our coal plants will operate a day longer than required by the national electricity system for its safety, economy and sufficiency«.

 

Meanwhile, the Minister of Mining and Energy, Juan Carlos Jobet, said, «we continue to advance in the plan to close coal-fired plants. Since it was announced in June 2019, we have accelerated the retirement of 6 coal-fired plants compared to their original date. Today we are taking another concrete step that will allow us to clean our generation matrix in a responsible way and replace it with clean energy for the good of Chileans and the planet».

 

He added that «clean energy that will replace coal will open up new opportunities for us: cleaner transportation, friendlier homes, cities with less pollution. They will also improve the competitiveness of key industries such as mining and agriculture, which will be increasingly green thanks to hydrogen. Chile is moving towards being a clean energy country«.

 

Julián Nebreda, President of the Strategic Unit of AES in South America and Chairman of the Board of AES Gener, said that «AES Gener and Chile are strategic for AES’s vision of the future of energy. The country has been an example of how it has faced the decarbonization process with the voluntary agreement that we signed more than a year ago and which has been an excellent framework to accelerate decarbonization in an orderly and efficient manner. At AES Corporation, we are committed to AES Gener and its Greentegra transformation process, and therefore we have approved to subscribe the capital increase of US $ 300 million recently announced by AES Gener».

 

Falú especially thanked the collaborators of Ventanas 1 and Ventanas 2. «You are part of the history of the plant and have always fulfilled the purpose of delivering reliable energy by putting safety first, applying the highest standards and working all together with communities, clients, and authorities. We are happy that many of you continue to accompany us in our renewable projects’ construction and operation. Those whom today chose to retire from their jobs, enjoy the well-deserved rest after so many years of work, contributions to the Company and to the country».

For further details please see the translation of the material fact filed today.

 

Greentegra Strategy

Within the framework of its transformational strategy, AES Gener will add 2,305 MW of wind, solar, hydroelectric, and battery capacity to its portfolio by 2023, of which 1,356 MW are already in operation or under construction.

 

The Company is contributing to the sustainable reactivation of the countries where it operates. Between 2019 and 2024, AES Gener will invest close to US$ 3,000 million in renewable projects that will generate more than 7,000 direct jobs with a focus on hiring women and local labor.

 

 

 

About AES Gener

AES Gener generates and sells electricity in Chile, Colombia, and Argentina with the mission of improving lives by accelerating a safer and greener energy future. The Company operates a total installed capacity of 5,309MW in the region along with an extensive portfolio of renewable energy projects under development. The Company is the largest generator in Chile in 2020, with a diversified portfolio including hydro, wind, solar, energy storage, biomass, gas, and coal-fired power plants.

 

AES Gener owns and operates 3,625MW in Chile, comprised of 3,068MW of thermoelectric, 271MW of hydroelectric, 110MW of wind, 102MW of solar photovoltaic and 13MW of biomass capacity, in addition to 62MW of battery energy storage systems, seawater desalination plants, transmission lines, and gas pipelines. AES Gener also owns hydroelectric and solar plants in Colombia with a total capacity of 1,041 MW and a combined-cycle natural gas plant in Argentina with an installed capacity of 643 MW.

 

AES Gener is 66.7% owned by The AES Corporation.

To learn more about AES Gener, please visit www.aesgener.cl/investors

Follow AES Gener on Twitter @AESGener

AES Gener Launches Capital Increase to fund Green Growth

Preferential Rights Period Begins today at CLP$110/share

 

AES Gener has officially begun the 30-day preferential rights period for shareholders to subscribe and pay the Company’s new shares.

The Board of Directors set the price of the 1,980,000,000 shares available during the follow on at CLP$110/share.

The Company intends to raise approximately $300mn through the Capital Increase to fund its green transformational plan.

The 30-day preemptive rights period will last until January 27, 2020.

As of December 22, 2020, those inscribed in the Shareholders Registry have the right to subscribe 0.236404290483845 new shares for every share inscribed.

The funds raised by the follow on will fund growth in wind, solar and battery projects in Chile and Colombia during 2021, as part of the Company’s Greentegra transformational strategy.

For further details, please see the Material Fact filed today.

AES Gener will hold an event on Tuesday, December 29, 2020, that will mark a major milestone in Chile’s energy transition.

The event will be hosted by AES Gener CEO, Ricardo Falú, at 12:00pm (10:00 am EST).

Chile’s Energy and Mining Minister Juan Carlos Jobet will also speak at the event.

A live stream feed of the event will be available here.

 

AES Gener to Launch Green Capital Increase December 29th, 2020

Announcement regarding Capital Increase dates and shares to be placed

AES Gener published details regarding the upcoming $300mn Capital Increase to fund renewable growth in Chile and Colombia.

The Board of Directors of the company has decided to place 1,980,000,000 shares of the 5,000,000,000 shares approved by the shareholders. This number of shares is in line with the reduction of the Capital Increase from $500mn to $300mn, announced on December 1, when management explained that the Company’s strong financial position made possible the decrease.

The 30-day preemptive rights period will commence on December 29, 2020, lasting until January 27, 2020.

The Board of Directors will set the new shares’ price based on a volume-weighted average price of up to 60 days prior to the start of the preemptive rights period, plus a discount to incentivize participation, in line with what was agreed upon at the April 16, 2020, shareholders meeting. The price will be announced on December 29, 2020,

Those inscribed in the Shareholders Registry as of December 22, 2020, will have the right to subscribe 0.236404290483845 new shares for every share owned.

The funds raised by the follow on will be used to fund growth in wind, solar, and battery projects in 2021, as part of the Company’s Greentegra transformational strategy.

For further details, please see the attached copy of the announcement published in the El Pulso Newspaper today.

The presentation from the meetings held with investors during the non-deal roadshow in December 2020, is available here.

AES Gener’s Management to propose US$ 300 million Capital Increase to the Board of Directors 

 

The company’s solid cash generation and recent transactions allow for the reduction in contributions needed from its shareholders

 

AES Gener’s management will propose to the Board of Directors that Company place US$ 300 million in shares in the approved capital increase to finance growth in renewables.

 

Ricardo Falú, CEO of AES Gener, indicated “the solid cash generation of AES Gener together with the continued success in the execution of the Greentegra strategy, including the transactions announced during the third quarter, such as the monetization of Angamos´ contracts and the incorporation of partners, allows us to propose at the December Board Meeting, the placement of a smaller than approved number of shares.”

 

Management’s proposal is US$ 200 million less than the amount the shareholders approved – given the robust liquidity position of the company.

 

Meanwhile, Ricardo Roizen, CFO of AES Gener, said “we continue to execute the previously announced Greentegra strategy in a timely manner to carry out the transformation of the company, without having the need to raise incremental debt or place the entirety of the shares approved for the follow on.”

 

The funds generated by the placement of the shares are a fundamental part of the company’s plan to finance its transformation and continue building and developing renewable projects based on cutting-edge wind, solar and battery technology in Chile and Colombia.

In accordance with Section 2.4 of the AES Gener Green Bond Framework dated September 25, 2019, please find AES Gener 2020 Green Bond Impact Report here

The presentation from the meetings held with investors during November 2020, is available here.

AES Gener Improves Dow Jones Sustainability Index Scoring

AES Gener’s commitment to sustainability is recognized by DSJI Chile and MILA indexes

 

For the sixth consecutive year, AES Gener was included in the 2020 Dow Jones Sustainability Index Chile, a ranking that groups together the 27 leading companies in environmental, social and corporate governance matters. In addition, the company remained for the second year in the Index of the Latin American Integrated Market (MILA) includes companies in the countries of the Pacific Alliance.

In this new ranking, AES Gener improved its overall score and achieved maximum scores in several categories as well. The categories where AES Gener obtained the highest possible score were: Transmission, Risk and Crisis Management, Innovation Management, Environmental Report, Water-Related Risks, Policies and Environmental Management System and Social Report. The company also achieved high scores in Climate Strategy, Code of business Conduct and Labour Practice Indicators.

The Chief Executive Officer of AES Gener, Ricardo Falú, indicated that “these results are a recognition of the company’s commitment to sustainability and the way in which we guide our daily actions and define our strategy. This motivates us to continue contributing, through our Greentegra strategy, to the development of Chile and its energy transition”.

“Being part of the Dow Jones Sustainability Index is not only a recognition of the company, but to all those who work day in and day out to accelerate the future of energy. Our people share the passion for helping meet Chile’s energy needs, and they have the satisfaction of knowing that their work not only contributes to the development and growth of the country but also to the communities where we operate”, said Falú.

AES Gener was the first electricity generator selected by the Dow Jones Sustainability Index Chile and has maintained its position during the 6 years that this ranking has been carried out in Chile. This ranking seeks to promote best practices related to environmental, social and corporate governance factors.

Meanwhile, AES Corporation, AES Gener’s majority shareholder, remained for the seventh consecutive year in the Dow Jones Sustainability Index for North America.

 

About AES Gener

AES Gener generates and sells electricity in Chile, Colombia, and Argentina with the mission of improving lives by accelerating a safer and greener energy future. The Company operates a total installed capacity of 5,309MW in the region along with an extensive portfolio of renewable energy projects under development. The Company is the largest generator in Chile in 2020, with a diversified portfolio including hydro, wind, solar, energy storage, biomass, gas, and coal-fired power plants.

 

AES Gener owns and operates 3,625MW in Chile, comprised of 3,068MW of thermoelectric, 271MW of hydroelectric, 110MW of wind, 102MW of solar photovoltaic and 13MW of biomass capacity, in addition to 62MW of battery energy storage systems, seawater desalination plants, transmission lines, and gas pipelines. AES Gener also owns hydroelectric and solar plants in Colombia with a total capacity of 1,041 MW and a combined-cycle natural gas plant in Argentina with an installed capacity of 643 MW.

 

AES Gener is 66.7% owned by The AES Corporation.

To learn more about AES Gener, please visit www.aesgener.cl/investors

Follow AES Gener on Twitter @AESGener

AES Gener consolidates its transformation as a leading renewable energy company

 

  • The company signed new renewable contracts for 2.1 TWh per year, monetized coal assets for US $ 833 million and is making solid progress in the construction of 2,304 MW renewable and battery projects that will be incorporated into the portfolio by 2023.

  • The excavation of the Volcán tunnel has been completed and with less than 1.9 kilometers remaining to start the commercial operation of Alto Maipo.

SANTIAGO, November 5, 2020.- AES Gener maintains its solid operational and financial performance during the third quarter of 2020. The company, demonstrating its resilience and capacity to execute, achieved very significant milestones in the materialization of its Greentegra Strategy to become the energy solutions provider of choice in South America.

EBITDA as of September 30, 2020 was US $ 682 million, a figure of US $ 63 million higher than that registered in the same period of 2019, which is based on the robustness of its long-term contracts and its operational, commercial and financial excellence.

AES Gener CEO, Ricardo Manuel Falú, indicated that “we are very proud of the achievements we have obtained during the third quarter, which confirm that our Greentegra Strategy is on the right path in each of its three pillars: make more sustainable and competitive the energy supply of our customers, reduce the carbon intensity of our portfolio and strengthen the investment grade ratings of our company”.

Falú added “despite the pandemic, we are making accelerated progress in the transformation of our company. The achievements to date in the execution of our strategy allow us to announce that 10 coal-fired units for a total of 2,032 MW will sell 100% of their energy to spot by 2025, delivering the capacity that the system requires during its transition to renewables. Furthermore, since the launch of Greentegra, we have signed renewable contracts for 10.7 TWh per year that ensure the incorporation of 2,304 MW of renewable capacity and batteries to our portfolio by 2023”.

Finally, he highlighted “we will continue to take care of each other and work together, focused on accelerating the decarbonization and diversification of the energy matrix of the countries where we operate, contributing to the sustainable recovery with significant investments, generating thousands of jobs, creating value and local development».

CONSOLIDATED FINANCIAL SUMMARY

Financial Summary (ThUS$) YTD   3Q  
2020 2019 Var (%) 2020 2019 Var (%)
Revenue 1,788,935 1,848,670 -3% 674,331 626,876 8%
Gross Profit 584,558 488,764 20% 291,781 194,073 50%
EBITDA* 682,070 619,182 10% 312,218 236,800 32%
Net Income (attributable to AES Gener) (426,805) 215,271 (564,523) 97,066
Net Cash from Operations 1,060,634 449,447 136% 913,510 252,125 262%
Earnings per Share (0.063) 0.014  — (0.067) 0.012

 

Major third quarters milestones

Operations
  • AES Gener remains the main generator of electricity in Chile, contributing 25% of the gross generation of the country, prioritizing the safety and well-being of employees, contractors and communities since the beginning of the pandemic.

Monetization of Coal Assets

  • On August 31, 2020, the company received U $ 720 million for the early termination of contracts from its subsidiary Angamos with the mining companies Spence and Escondida, both subsidiaries of BHP.
  • The Company incorporated Toesca as a partner in the Cochrane property, which implied a payment of US $ 113 million which, together with the payment received by Angamos, has allowed it to have the necessary liquidity for renewable growth, and postpone the authorized capital increase until the first quarter of 2021.

New Long-Term Renewable Contracts

  • Since the last quarterly report, renewable contracts have been signed with Sierra Gorda for 1,240 GWh per year for 19 years; with Carmen de Andacollo from Teck for 550 GWh per year for 11 years and 240 GWh per year for 15 years with the Ecopetrol subsidiary, Cenit, together with the award of the largest self-generation solar project in Colombia of 61 MW.

Solid Progress in Projects under Construction

  • The Alto Maipo project reached 93% progress and achieved a very relevant milestone in its construction by completing the 14 km of excavation of the Volcán tunnel, which links the Volcán and Yeso basins. Less than 1.9 kilometers of excavation remain in the Las Lajas discharge tunnel to start commercial operation with the two generation plants for 531 MW in the second half of 2021.
  • The innovative Virtual Reservoir project won the Avonni Award in the Electric Companies Energy category and is now fully operational.
  • The 80 MW of Andes Solar IIA, the most efficient solar project in the world, is already fully operational.
  • The Los Olmos and Mesamávida wind farms, for a total of 178 MW, continue to advance and reach a progress of 38% and 23%, respectively.

Launch of new projects

  • The construction of Andes Solar IIB has started, which will have a capacity of 180 MW, of which 10 MW will be installed with the revolutionary Maverick technology of 5B and will have the lithium battery storage system – 112 MW for 5 hours – largest in Latin America.
  • In the Los Angeles District, construction began on the 73 MW Campo Lindo wind farm, which will be part of the 480 MW wind farm in the region.
  • In Colombia, construction began on the 61 MW San Fernando solar park for Ecopetrol. It will be the largest self-generating solar plant in the country when it comes online in 2021, near the 21 MW Castilla solar plant.
  • Alineado con su objetivo de fortalecer su grado de inversión, AES Gener realizó prepagos de deuda por un total de US$ 444 millones en los últimos meses.

Debt Prepayment

  • Aligned with its objective of strengthening its investment grade, AES Gener made debt prepayments for a total of US $ 444 million in recent months.

Today, AES Gener’s Board of Directors agreed to call an extraordinary shareholder meeting on November 19, 2020, at 10:00 am local time.

The meeting will aim to discuss and approve the proposed payment of an Eventual Dividend against the Reserve for Future Dividends.

The US$ 194,214,038.61, equivalent to US$0,0231884./share dividend has been proposed to be paid on December 10, 2020.

For more information, please see the Material Fact published today.

Sierra Gorda SCM’s electricity supply will be 100% renewable in 2023

SANTIAGO, November 4, 2020.- Starting in 2023, 100% of the energy supply of the Sierra Gorda SCM mining operations will be renewable. The fulfillment of this strategic objective will be possible, after the signing of a long-term power purchase agreement (PPA) with AES Gener.

The commercial agreement between Sierra Gorda SCM and AES Gener establishes that the approximate annual consumption of 1,240 GWh of the operation will be supplied from the generator’s growing renewable portfolio, which includes solar, wind, hydroelectric and batteries. This agreement will come into effect from January 2021 for 40% of consumption, increasing to 100% from 2023, a percentage that will remain until December 2039.

During the day, energy will be mainly supplied by the Andes Solar II b solar park, located in the Atacama Desert. During the hours when the sun is not present, energy will come from the largest battery storage system in Latin America, part of the Andes Solar II b project, and AES Gener’s renewable energy portfolio.

The use of renewable energy by mining company Sierra Gorda SCM will allow the displacement of 1 million tons of CO2 per year, which is equivalent to supplying zero-emission energy to 100% of the homes in the Antofagasta Region for 2.7 years.

Miguel Baeza, Vice President of Legal, Corporate and Sustainability Affairs, said “by signing this agreement, we are taking a new step to continue developing a more sustainable mining; the use of renewable energies will allow us to stop emitting greenhouse gases, and at the same time, maintain an efficient and competitive operation, contributing to the region and the country ”.

“We are very honored and grateful to Sierra Gorda SCM for the trust it places in AES Gener as a provider of innovative and intelligent energy solutions to accelerate its decarbonization and contribute to its competitiveness. The long-term renewable contracts that we are signing through the Coal to Green solution allow us to make the operations of our business partners more sustainable while together we contribute to the energy transition and economic reactivation of the country”, said Ricardo Falú, CEO of AES Gener.

 

 

AES GENER

CONFERENCE CALL INVITATION

3Q-2020 EARNINGS

AES Gener will report its financial results for the

Third Quarter of 2020 on Thursday, November 5, 2020, after market close.

The Company will host a conference call on:

Friday,  November 6, 2020, at 12:30 PM Chile (10:30 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/q5eginmo or call any of the

phone numbers below 5 to 10 minutes before the conference call is scheduled to start:

US Toll (Outside US) 1 (409) 217-8239
US Toll Free (US, Canada) 1 (866) 420-4071
UK Toll Free 0800 028 8438
Brazil Toll Free 0800 891 6189
Argentina Toll Free 0800 333 1050
Chile Toll Free 80 091 4686
   
Conference ID 6267529

A recording of this webcast will also be available for approximately one year after the call.

– In the last two months, the company received US $ 720 million from the monetization of the Angamos contracts and US $ 113 million from incorporating Toesca as a partner in Cochrane.

– The Extraordinary Shareholders’ Meeting of AES Gener approved to extend the period to start the capital increase by 180 days.

 

SANTIAGO, October 1, 2020.- The administration has decided to postpone the execution of the US $ 500 million capital increase to the first quarter of 2021, as a result of the successful implementation of the Greentegra strategy, whose main objective is to accelerate the decarbonization process in Chile. The company has sufficient liquidity, US $ 833 million, as a result of the monetization of the future value of the Angamos contracts and the entry of Toesca as a partner in Cochrane’s ownership structure – to meet commitments and capital needs in the coming months.

The Shareholders approved the proposal of the Company’s Board of Directors to extend the term – by 180 days – to set the final price and start the US $ 500 million capital increase, initially approved on April 16, 2020.

The Meeting was held in Santiago via teleconference and while taking all the necessary safety measures for people who attended in person.

The approved capital increase is the largest in AES Gener’s history. It will be used to finance the construction of renewable projects based on state-of-the-art wind, solar, and battery technology in Chile and Colombia.

Ricardo Manuel Falú, CEO of AES Gener, together with thanking the shareholders for approving the extension of the initial term, indicated that “the monetization of the Angamos contracts and the incorporation of Toesca into our investment in Cochrane are an unequivocal sign that the AES Gener’s value lies in its contracts and long-term relationships with its clients and not in its coal-fired assets ”.

Meanwhile, Ricardo Roizen, CFO of AES Gener, said that “the successful progress in the execution of our strategy has allowed us to have the necessary liquidity to continue with the development of our renewable projects, maintain our dividend policy and postpone the capital increase until the first quarter of 2021 ”.

Business Update

During the meeting, Ricardo Falú informed the shareholders about the measures and protocols implemented during the pandemic to guarantee the safety of employees and deliver the reliable energy that Chile, Argentina and Colombia need.

He indicated that AES Gener has remained the main electricity generating company in Chile, contributing 26% of the country’s energy.

He also reviewed the progress status of the 719 MW projects that the company currently has under construction, highlighting that Alto Maipo reached progress of 92%.

He highlighted that, while the company is not immune to the pandemic, its strategy and operations have proven to be resilient.

 

About AES Gener

 

AES Gener generates and sells electricity in Chile, Colombia, and Argentina with the mission of improving lives by accelerating a safer and greener energy future. The Company operates a total installed capacity of 5,299MW in the region along with an extensive portfolio of renewable energy projects under development. The Company is the largest generator in Chile in 2020, with a diversified portfolio including hydro, wind, solar, energy storage, biomass, gas, and coal-fired power plants.

 

AES Gener owns and operates 3,615MW in Chile, comprised of 3,068MW of thermoelectric, 271MW of hydroelectric, 110MW of wind, 92MW of solar photovoltaic and 13MW of biomass capacity, in addition to 62MW of battery energy storage systems, seawater desalination plants, transmission lines, and gas pipelines. AES Gener also owns hydroelectric and solar plants in Colombia with a total capacity of 1,041 MW and a combined-cycle natural gas plant in Argentina with an installed capacity of 643 MW.

 

AES Gener is 66.7% owned by The AES Corporation.

AES Gener filed a material fact with the Chilean Commission for the Financial Market today, regarding a Non-Recurring Accounting Adjustment related to its transformational strategy Greentegra and decarbonization efforts in Chile.

 

Below is a translation of the material fact.

 

AES GENER S.A.  MATERIAL FACT

 

Santiago, September 29, 2020

 

Mister

Joaquín Cortez H.

President Commission for the Financial Market

Avda. Libertador Bernardo O’Higgins 1449

 

Ref: Non-Recurring Accounting Adjustment

_________________________

 

Of our consideration:

In accordance with the provisions of article 9 and the second paragraph of article 10 of Law No. 18,045, of the Stock Market, as well as General Regulation No. 30 of the Commission under your position, the undersigned, duly empowered to do so, informs as a Material Fact that, as a result of the events described below, AES Gener S.A. (“AES Gener” or the “Company”) has determined to make the non-recurring accounting adjustments that are indicated:

  1. On August 31, 2020, Empresa Eléctrica Angamos SpA received a net payment of US $ 720 million from Minera Escondida Limitada and Minera Spence S.A., thus materializing the agreements signed between the parties with the purpose of modifying and early terminating the energy supply contracts; and
  2. Considering the intention of the Company to accelerate the disconnection and cease of operations of the coal-fired units Ventanas 1 and Ventanas 2 at the earliest date that the safety and sufficiency of the system allows, subject to compliance with the conditions precedent of the Disconnection and Cease of Operations Agreement of these units.

In view of the aforementioned facts and given that these units [Angamos 1, Angamos 2, Ventanas 1 and Ventanas 2] will no longer be considered strategic assets as they will not be associated with the supply of supply contracts, constituting independent “Cash Generating Units”, AES Gener will record a loss due to the impairment of Plant Property and Equipment, which will affect the 2020 net income by approximately US $ 560 million. This non-recurring accounting adjustment will not have an impact on the Company’s cash flow.

Finally, we note that the Company has concluded that it is appropriate to record an impairment loss for the full value of its investment in its non-consolidated subsidiary, Guacolda Energía S.A. with a negative impact on the net income for the year 2020 of approximately US $ 90 million. This non-recurring accounting adjustment will not have an impact on the Company’s cash flow.

 

Without any other particular, best regards,

AES Gener S.A.

Ricardo Falú

Chief Executive Officer

 

About AES Gener

 

AES Gener generates and sells electricity in Chile, Colombia, and Argentina with the mission of improving lives by accelerating a safer and greener energy future. The Company operates a total installed capacity of 5,299MW in the region along with an extensive portfolio of renewable energy projects under development. The Company is the largest generator in Chile in 2020, with a diversified portfolio including hydro, wind, solar, energy storage, biomass, gas, and coal-fired power plants.

 

AES Gener owns and operates 3,615MW in Chile, comprised of 3,068MW of thermoelectric, 271MW of hydroelectric, 110MW of wind, 92MW of solar photovoltaic and 13MW of biomass capacity, in addition to 62MW of battery energy storage systems, seawater desalination plants, transmission lines, and gas pipelines. AES Gener also owns hydroelectric and solar plants in Colombia with a total capacity of 1,041 MW and a combined-cycle natural gas plant in Argentina with an installed capacity of 643 MW.

 

AES Gener is 66.7% owned by The AES Corporation.

 

To learn more about AES Gener, please visit www.aesgener.cl/investors

AES Gener participated this week in XVIII Credicorp Capital Andean Conference and held meetings with several investors.

The presentation from the meetings during the conference is available here.

Teck Carmen de Andacollo Switches to Renewable Power

 

SANTIAGO, September 17, 2020.- Teck Resources Limited (TSX: TECK.A and TECK.B, NYSE: TECK) (“Teck”) and The AES Corporation (NYSE: AES) announced today that their Chilean affiliates, Compañía Minera Teck Carmen de Andacollo S.A. («CdA”) and AES Gener S.A (“AES Gener”), have entered into a long-term power purchase agreement to provide 100% renewable power for Teck’s Carmen de Andacollo Operation in Chile.

 

Under the agreement, CdA will source 72 Megawatts (MW) (550 GWh/year) from AES Gener’s growing renewable portfolio of wind, solar and hydroelectric energy. The transition to renewable power will replace previous fossil fuel power sources and eliminate approximately 200,000 tonnes of greenhouse gas (GHG) emissions annually, the equivalent to removing over 40,000 passenger vehicles from the road.

 

“Teck is tackling the global challenge of climate change by reducing the carbon footprint of our operations and working towards our goal of becoming carbon neutral,” said Don Lindsay, President and CEO of Teck. “This agreement takes Teck a step closer to achieving our sustainability goals, while also ensuring a reliable, long-term clean power supply for CdA at a reduced cost to Teck.”

 

“We are honored to continue working together with Teck to help them progress towards their goal of carbon neutrality,” said Andrés Gluski, AES Corporation President and Chief Executive Officer. “By providing Teck with innovative renewable energy solutions, AES Gener is helping build Chile’s sustainable and reliable grid of the future.”

 

As part of its updated Sustainability Strategy, Teck has set the goal of being a carbon neutral operator by 2050. In support of that that long-term objective, Teck has established milestone goals including sourcing 100% of all power needs in Chile from renewable power by 2030 and reducing the carbon intensity of operations by 33% by 2030. Teck previously announced an agreement with AES Gener to supply renewable power for the Quebrada Blanca Phase 2 (QB2) project currently under construction. Once effective, more than 50% of QB2’s total operating power needs will be from renewable sources.

 

The Carmen de Andacollo renewable power arrangement is in effect as of September 1, 2020 and will run through to the end of 2031.

 

“Switching to clean, renewable power for Carmen de Andacollo is another step forward in our ongoing commitment to responsible resource development across our operations and activities,” said Alejandro Vásquez, Vice President, South America, Teck.

 

“The contract we have signed with Compañía Minera Teck Carmen de Andacollo constitutes a new step in the execution of our Greentegra strategy. The agreement reflects the excellent relationships we have with our business partners, whom trust AES Gener as their provider of smart, innovative, competitive and sustainable energy solutions”, said AES Gener CEO, Ricardo Falú.

 

Carmen de Andacollo is a copper mine located in the Coquimbo Region of central Chile, approximately 350 kilometres north of Santiago. Teck owns a 90% interest in the mine. Empresa Nacional de Minería holds the remaining 10%.

 

Forward-Looking Statements – Teck

This press release contains certain forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information as defined in the Securities Act (Ontario). Forward-looking statements and information can be identified by the use of words such as «expects», «intends», «is expected», «potential» or variations of such words and phrases or statements that certain actions, events or results «may», «could», «should», «would», «might» or «will» be taken, occur, or be achieved. Forward-looking statements include statements regarding anticipated annual elimination of GHG emissions; Teck’s goal of being a carbon neutral operator by 2050; Teck’s milestone of sourcing 100% of all power needs in Chile from renewable power by 2030 and reducing the carbon intensity of operations by 33%; and expectation that more than 50% of QB2’s total operating power needs will be from renewable sources.

 

The forward-looking statements in this release are based on a number of assumptions, including, but not limited to, assumptions regarding the ultimate sources of power under the power arrangements; availability of technology to achieve carbon neutrality on commercially reasonable terms; and availability of sufficient renewable power in Chile on commercially reasonable terms. Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of Teck to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Factors that may cause actual results to vary include, but are not limited to, ultimate sources of power under the power arrangements; cost of decarbonization and other climate impact initiatives; lack of availability of carbon neutral technology or renewable power on commercially reasonable terms; failures in performance by contractual counterparties, and other risk factors as detailed from time to time in Teck’s reports filed with Canadian securities administrators and the U.S. Securities and Exchange Commission.

 

Certain of these risks are described in more detail in the annual information form of Teck and in its public filings with Canadian securities administrators and the U.S. Securities and Exchange Commission. Teck does not assume the obligation to revise or update these forward-looking statements after the date of this document or to revise them to reflect the occurrence of future unanticipated events, except as may be required under applicable securities laws.

 

About Teck

Teck is a diversified resource company committed to responsible mining and mineral development with major business units focused on copper, steelmaking coal and zinc, as well as investments in energy assets. Headquartered in Vancouver, Canada, its shares are listed on the Toronto Stock Exchange under the symbols TECK.A and TECK.B and the New York Stock Exchange under the symbol TECK. Learn more about Teck at www.teck.com or follow @TeckResources.

 

 

About AES

The AES Corporation (NYSE: AES) is a Fortune 500 global power company.  It provides affordable, sustainable energy to 14 countries through their diverse portfolio of distribution businesses as well as thermal and renewable generation facilities.  Its workforce is committed to operational excellence and meeting the world’s changing power needs.  Its 2019 revenues were $10 billion and it owns and manages $34 billion in total assets.  To learn more, please visit www.aes.com.  Follow AES on Twitter @TheAESCorp.

 

About AES Gener

AES Gener generates and sells electricity in Chile, Colombia, and Argentina with the mission of improving lives by accelerating a safer and greener energy future. The Company operates a total installed capacity of 5,299MW in the region along with an extensive portfolio of renewable energy projects under development. The Company is the largest generator in Chile in 2020, with a diversified portfolio including hydro, wind, solar, energy storage, biomass, gas, and coal-fired power plants.

 

AES Gener owns and operates 3,615MW in Chile, comprised of 3,068MW of thermoelectric, 271MW of hydroelectric, 110MW of wind, 92MW of solar photovoltaic and 13MW of biomass capacity, in addition to 62MW of battery energy storage systems, seawater desalination plants, transmission lines, and gas pipelines. AES Gener also owns hydroelectric and solar plants in Colombia with a total capacity of 1,041 MW and a combined-cycle natural gas plant in Argentina with an installed capacity of 643 MW.

 

AES Gener is 66.7% owned by The AES Corporation.

To learn more about AES Gener, please visit www.aesgener.cl/investors

Follow AES Gener on Twitter @AESGener

 

IN LINE WITH ITS GREENTEGRA STRATEGY

AES Gener will incorporate a new Partner into its ownership of  Eléctrica Cochrane

  • The agreed price is US $ 113.5 million and the net proceeds will be fully used to finance the company’s renewable growth plan

  • AES Gener will maintain the control and operations of the plant

 

SANTIAGO, September 4, 2020.- AES Gener continues to make headway in its Greentegra strategy with the upcoming incorporation of TIF Inversiones SpA as an indirect minority owner of its subsidiary Empresa Eléctrica Cochrane.

 

TIF Inversiones SpA (TIF Inversiones) is an Investment Fund, owned by Toesca Infraestructura II Fondo de Inversión, related to Toesca a Chilean asset manager.

 

TIF Inversiones will acquire 49.99% of the economic value that AES Gener has in Empresa Eléctrica Cochrane (Cochrane) for $ 113.5 million. The ownership structure of Cochrane will result in 60%, split between AES Gener and TIF Inversiones, and 40% of Daelim Energy. AES Gener will maintain control and continue to consolidate Cochrane, a 550MW coal-fired plant in northern Chile.

 

“The incorporation of TIF Inversiones as a Partner in Cochrane further demonstrates that the value of AES Gener lies in its energy contracts and long-term relationships with its customers. We value TIF Inversiones’ trust in our company and have no doubt this will be the beginning of a long and fruitful partnership”, said Ricardo Falú, AES Gener CEO.

 

The executive added that the incorporation of partners is one of the main pillars to finance the renewables and batteries growth plan of its Greentegra strategy.

 

«The funds obtained from this transaction will be fully used to finance AES Gener’s growth plan, seeking to reduce the carbon intensity of its portfolio and decisively advance in the energy transition towards renewable energy and batteries,» said Falú.

 

It is important to note that the company plans to conduct a $500 million capital increase in early 2021 and received US$ 720 million as a result of the BHP settlement agreement at Angamos.

 

LarrainVial acted as financial advisor and Claro y Compañía studio as legal advisor for the transaction.

 

About AES Gener

AES Gener generates and sells electricity in Chile, Colombia, and Argentina with the mission of improving lives by accelerating a safer and greener energy future. The Company operates a total installed capacity of 5,299MW in the region along with an extensive portfolio of renewable energy projects under development. The Company is the largest generator in Chile in 2020, with a diversified portfolio including hydro, wind, solar, energy storage, biomass, gas, and coal-fired power plants.

 

AES Gener owns and operates 3,615MW in Chile, comprised of 3,068MW of thermoelectric, 271MW of hydroelectric, 110MW of wind, 92MW of solar photovoltaic and 13MW of biomass capacity, in addition to 62MW of battery energy storage systems, seawater desalination plants, transmission lines, and gas pipelines. AES Gener also owns hydroelectric and solar plants in Colombia with a total capacity of 1,041 MW and a combined-cycle natural gas plant in Argentina with an installed capacity of 643 MW.

 

AES Gener is 66.7% owned by The AES Corporation.

AES Gener management participated this week in Larrain Vial’s 14th Annual Andean Conference and held meetings with several investors.

The presentation from the meetings during the conference is available here.

AES Gener Receives $720 Million Payment

Resources to Fund Greentegra Strategy

 

 

Santiago, August 31, 2020.- The subsidiary of AES Gener S.A. (“AES Gener”, or “the Company”) Empresa Eléctrica Angamos SpA (“Angamos”) has received $720 million in cash related to the settlement agreement reached with BHP subsidiaries Minera Escondida Limitada and Minera Spence SpA in August 2020.

 

The settlement payment has been set aside to further the objectives of the Greentegra strategy, launched in 2018, to transform the Company into a leading energy solutions provider in the region.

 

The full net proceeds of the agreement will be used to prepay debt in 2020 and fund wind, solar and battery growth, in line with the Company’s Greentegra objectives to reduce the carbon intensity of its portfolio and strengthen its investment-grade ratings.

 

Ricardo Falú, CEO of AES Gener, stated, “This settlement payment demonstrates the value in AES Gener’s robust tolling agreement contracts, that make up half of our contracts in Chile today. These existing long-term relationships with large credit-worthy customers are key in understanding the profitable transformation the company is going through.”

 

As of 2022, Angamos will no longer be needed to fulfill contractual obligations and will sell its energy to the spot market ensuring the reliability of the grid. Once the system no longer requires the 558MW coal-fired plant, the Company will proceed to shut it down, having fully recovered its expected return and investment.

 

AES Gener is advancing in its transformation to accelerate the decarbonization and diversification of the energy markets where it operates. The Company has already secured 8.2TWh/y in Greentegra contracts. It is adding 2.3 GW of contracted wind, solar, hydro, and battery capacity into its portfolio by 2024, reducing its carbon intensity by 27%. This transformation includes sizeable investments, generating thousands of jobs, and driving social and local development, thus playing a critical role in the sustainable economic recovery.

 

The receipt of these payments ratifies the agreement announced on August 7, 2020. The PPAs will cease in August 2021 and all pending legal disputes are resolved.

 

The $720 million payment will be reflected on the Company’s third quarter 2020 Cash Flow Statement and recognized as revenue on the 2020 and 2021 Income Statements spread evenly across the remaining life of the PPAs. The settlement payment will not be considered recurring net income for dividend calculation purposes.

 

 

About AES Gener

AES Gener generates and sells electricity in Chile, Colombia, and Argentina with the mission of improving lives by accelerating a safer and greener energy future. The Company operates a total installed capacity of 5,299MW in the region along with an extensive portfolio of renewable energy projects under development. The Company is the largest generator in Chile in 2020, with a diversified portfolio including hydro, wind, solar, energy storage, biomass, gas, and coal-fired power plants.

 

AES Gener owns and operates 3,615MW in Chile, comprised of 3,068MW of thermoelectric, 271MW of hydroelectric, 110MW of wind, 92MW of solar photovoltaic and 13MW of biomass capacity, in addition to 62MW of battery energy storage systems, seawater desalination plants, transmission lines, and gas pipelines. AES Gener also owns hydroelectric and solar plants in Colombia with a total capacity of 1,041 MW and a combined-cycle natural gas plant in Argentina with an installed capacity of 643 MW.

 

AES Gener is 66.7% owned by The AES Corporation.

AES Gener wins Ecopetrol’s tender for the construction of the San Fernando Solar Project

With an installed capacity of 59 MW, the San Fernando solar project will become the largest self-generation solar plant in Colombia, joining the 21MW of the Castilla solar plant in operation since October 2019

 

San Fernando will be a pioneer, using bifacial solar panels and sun-tracking technology, making it highly efficient and the most innovative solar project in Colombia.

 

August 18, 2020.- AES Gener’s subsidiary, AES Colombia, has consolidated itself as Ecopetrol’s strategic partner with innovative, sustainable and competitive energy solutions.

 

The company was awarded a 15-year PPA, which includes the construction, operation and maintenance of the new 59 MW San Fernando Solar Project.

 

Located in the Municipality of Castilla La Nueva, in the county of Meta, the new solar project will supply part of the energy required for the operations of Ecopetrol and Cenit in the Eastern Plains of Colombia.

 

The project will be built in an area of ​​approximately 47 hectares, where AES Colombia will install approximately 113,000, monocrystalline silicon bifacial 530 Wp panels. The solar plant is expected to start operations mid-2021.

 

San Fernando is the most innovative solar project in Colombia. It combines bifacial technology, that captures sunlight from both sides of the panels, and tracking systems, optimizing the orientation of the panels to capture the sun’s rays at all times.

 

“We are convinced that coexistence between all forms of energy generation is possible. The construction of our second solar plant is another step in our commitment to advance towards the energy transition and to have an installed capacity of renewable energies of approximately 300 MW by 2022”, said Ecopetrol’s CEO, Felipe Bayón. 

 

“The construction of the San Fernando Solar Project confirms our commitment to Colombia. We are very proud and grateful to be able to continue supporting Ecopetrol in the execution of its transformational strategy and together contribute to the sustainable development of the country with innovative, sustainable and competitive energy solutions”, said AES Gener’s CEO, Ricardo Falú.

Falú continued to say “with this project, AES Colombia advances in the incorporation of non-conventional renewable energy to its portfolio, hand in hand with its customers and contributes to Greentegra’s objectives of greening customers´ energy supply, reducing the carbon intensity of its portfolio and strengthening AES Gener’s investment grade”.

 

AES Colombia also built and operates the 21 MW Castilla Solar plant for Ecopetrol, which is until today the largest self-generation solar plant in Colombia.

 

Ecopetrol is Colombia’s national oil company.  It is among the 40 largest oil companies in the world and among the four largest in Latin America.

 

 

About AES Gener

AES Gener generates and sells electricity in Chile, Colombia, and Argentina with the mission of improving lives by accelerating a safer and greener energy future. The Company operates a total installed capacity of 5,299MW in the region along with an extensive portfolio of renewable energy projects under development. The Company is the largest generator in Chile in 2020, with a diversified portfolio including hydro, wind, solar, energy storage, biomass, gas, and coal-fired power plants.

 

AES Gener owns and operates 3,615MW in Chile, comprised of 3,068MW of thermoelectric, 271MW of hydroelectric, 110MW of wind, 92MW of solar photovoltaic and 13MW of biomass capacity, in addition to 62MW of battery energy storage systems, seawater desalination plants, transmission lines, and gas pipelines. AES Gener also owns hydroelectric and solar plants in Colombia with a total capacity of 1,041 MW and a combined-cycle natural gas plant in Argentina with an installed capacity of 643 MW.

 

AES Gener is 66.7% owned by The AES Corporation.

AES Gener held an Investor call and Q&A Session on Tuesday 11 August in which Ricardo Falú, CEO of AES Gener, and Ricardo Roizen, CFO of AES Gener, shared information about the company’s recently announced settlement with BHP for a $720 million cash payment in 2020.

The presentation used on that call is available here and a recording of the session is available here.

AES Gener Confirms Value of Long-Term Contracts with $720 Million Payment, Enabling Further Decarbonization

Payment to be received in 2020

 

 

The subsidiary of AES Gener S.A. (“AES Gener”, or “the Company”) Empresa Eléctrica Angamos SpA (“Angamos”) has reached an agreement with BHP subsidiaries Minera Escondida Limitada and Minera Spence SpA, for the early termination of their tolling power purchase agreements (“The PPAs”) with the 558MW coal-fired plant in Chile.

 

Per this agreement, the PPAs will cease in August 2021. In 2020, Angamos will receive a US$ 720 million payment, primarily reflecting the present value of the fixed charges through 2029, as stipulated in the PPAs. The agreement also resolves all pending legal disputes.

 

Through this agreement, the Company is accelerating the monetization of the future value of these contracts at a very low discount rate and fully delinking Angamos’ PPAs from the coal asset.

 

Ricardo Falú, CEO of AES Gener, stated, “This agreement is a clear demonstration of the value and robust nature of AES Gener’s Tolling Agreements with the largest mining companies in Chile. It also confirms that the value of AES Gener lies in its long-term contracts and customer relationships, which are the competitive advantages to accelerate decarbonization through Greentegra solutions.”

 

As of 2022, having fully delinked all PPAs from the physical plant, Angamos will be fully merchant. Once the system no longer requires the coal-fired plant to ensure the reliability of the grid, the Company will proceed to shut it down, having fully recovered its expected return and investment.

 

“When we launched our new strategy in 2018, we took on the challenge to accelerate Chile´s decarbonization process by incorporating renewable energy and batteries into the grid while shutting down coal-fired plants as soon as the reliability of the system allows. That is our commitment”, added Falú.

 

In line with the Company’s Greentegra objectives to reduce the carbon intensity of its portfolio and strengthen its investment-grade ratings, the full net proceeds of the agreement will be used to prepay debt and fund US$ 200 million of wind, solar and battery growth.

 

Ricardo Roizen, CFO of AES Gener, indicated “The attractive returns on renewables investments we are making ensure sustainable earnings and dividends for the years to come, while the reduction in debt levels strengthens the capital structure and the investment grade of AES Gener

 

AES Gener is advancing in its transformation to accelerate the decarbonization and diversification of the energy markets where it operates. The Company has already secured 8.1 TWh/y in Greentegra contracts. It is adding 2.2 GW of contracted wind, solar, hydro, and battery capacity into its portfolio by 2024, reducing its carbon intensity by 27%. This transformation includes sizeable investments, generating thousands of jobs, and driving social and local development, thus playing a critical role in the sustainable economic recovery.

 

This agreement is subject to certain conditions to be satisfied by August 31, 2020, and Angamos receiving the net sum of US$ 720 million this year. For further details please refer to the Material Fact available here.

 

The Company will host a virtual Q&A session on Tuesday, August 11, at 8:30 AM. To connect to the call please register here.

 

About AES Gener

AES Gener generates and sells electricity in Chile, Colombia, and Argentina with the mission of improving lives by accelerating a safer and greener energy future. The Company operates a total installed capacity of 5,299MW in the region along with an extensive portfolio of renewable energy projects under development. The Company is the largest generator in Chile in 2020, with a diversified portfolio including hydro, wind, solar, energy storage, biomass, gas, and coal-fired power plants.

 

AES Gener owns and operates 3,615MW in Chile, comprised of 3,068MW of thermoelectric, 271MW of hydroelectric, 110MW of wind, 92MW of solar photovoltaic and 13MW of biomass capacity, in addition to 62MW of battery energy storage systems, seawater desalination plants, transmission lines, and gas pipelines. AES Gener also owns hydroelectric and solar plants in Colombia with a total capacity of 1,041 MW and a combined-cycle natural gas plant in Argentina with an installed capacity of 643 MW.

 

AES Gener is 66.7% owned by The AES Corporation.

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

On July 30, 2020, the AES Gener Board of Directors agreed to pay a US $81,049,981 dividend on August 28, 2020.
At the annual meeting on April 16, 2020, the shareholders approved US$115.785.687  to be paid in dividends during 2020 against the net income of 2019.
The first payment for US$34.735.706 was made on May 15, 2020, and the pending amount will now be paid on August 28, 2020, to shareholders of record at midnight on August 22, 2020.
Dividends will be paid in US dollars or in Chilean Pesos, at the shareholders’ choice, according to the procedure detailed in the material fact available here.

Once again, AES chooses Chile to test new solar technology

 

  • The pilot project will be installed at the Andes Solar Hub, in the mountains of the Atacama Desert.
  • The project is part of AES Gener’s Greentegra strategy, which seeks to accelerate the decarbonization, boost renewable energy and generate employment, value and local development.

 

Santiago, July 30, 2020.- Starting today, all eyes are on Chile’s renewable energy sector, after AES Corporation’s decision to choose the country as the testing ground for an innovative technology, which could revolutionize the way solar PV parks are built worldwide.

 

This new technology, called Maverick, developed by the Australian company 5B, allows for the deployment time of photovoltaic projects to be reduced significantly, three times faster than conventional PV construction methods. In addition, the amount of land required is also reduced considerably, using only half the surface of current projects.

 

“The 10 MW pilot project, using 5B’s Maverick system, will be deployed in the Andes Solar Hub, our initial photovoltaic project in Chile and where Andes Solar II is located, the world’s most efficient solar park, which is currently ramping up operations to provide 80MW to the grid”, affirms the CEO of AES Gener, Ricardo Falú. «This demonstrates the solid progress of our Greentegra strategy, with which we seek to become the energy solution provider of choice of our customers, and which aims to accelerate decarbonization, boost investments in renewable energy, as well as generate employment, value and local development ”, he adds.

 

The 5B Maverick pilot will be installed in the Andes mountains of the Antofagasta Region, where low mountain temperatures coupled with high solar radiation are ideal conditions for efficient solar energy production.

 

This is a new sign of AES Gener’s commitment to Chile, and which is in line with its Greentegra strategy, launched in May 2018. The company plans to incorporate 2,600 MW of renewable energy (solar, wind and hydroelectric) and batteries to its portfolio by 2024, generating more than 11,000 jobs, with a total investment of $ 3.4 billion.

 

“AES Gener has and will always be committed to Chile. 15 years ago, we took the commitment and the challenge of solving the energy crisis caused by the cutoff of gas from Argentina, and we did so by more than doubling our installed capacity in Chile with competitive and reliable energy,” says Ricardo Falú. “Since 2018 we took on the commitment and challenge to accelerate the decarbonization process of the energy matrix by incorporating renewable energy and batteries into the system, with cutting edge technology such as 5B’s Maverick; and the closure of all our coal-fired units as soon as security and sufficiency of the electrical system allows to do so. That is our commitment”, he ends.

AES GENER

CONFERENCE CALL INVITATION

2Q-2020 EARNINGS

AES Gener will report its financial results for the

Second Quarter of 2020 on Wednesday, August 5, 2020, after market close.

The Company will host a conference call on:

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 or call any of the

phone numbers below 5 to 10 minutes before the conference call is scheduled to start:

US Toll (Outside US) 1 (409) 217-8239
US Toll Free (US, Canada) 1 (866) 420-4071
UK Toll Free 0800 028 8438
Brazil Toll Free 0800 891 6189
Argentina Toll Free 0800 333 1050
Chile Toll Free 80 091 4686
Conference ID 9959023

A recording of this webcast will also be available for approximately one year after the call.

In case you need further information, please contact:

John Wills, Investor Relations Manager, Email: johnw.wills@aes.com

Constanza Lopez, Investor Relations Analyst, Email: constanza.lopez@aes.com

AES Gener management participated today in the J.P. Morgan Southern Cone & Andean Region Opportunities Conference and held meetings with several investors.

The presentation from the meetings held with investors during the conference is available here.

AES Gener management participated this week in Bank of America’s Emerging Markets Debt and Equity Conference 2020 and held meetings with several investors.

The presentation from the meetings held with investors during the conference is available here.

 

AES Gener management participated today in Goldman Sachs Utilities Conference – Heading to Net Zero and held meetings with several investors.

The presentation from the meetings held with investors during the conference is available here.

AES GENER

CONFERENCE CALL INVITATION

1Q-2020 EARNINGS

 

AES Gener has reported its financial results for the

First Quarter of 2020 on Wednesday, May 6, 2020.

The Company will host a conference call on:

Thursday,  May 7, 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/czedmcib 

A recording of this webcast will also be available for approximately one year after the call.

 

In case you need further information, please contact:

 

John Wills, Investor Relations Manager, Email: johnw.wills@aes.com

Constanza Lopez, Investor Relations Analyst, Email: constanza.lopez@aes.com

AES Gener has prepared a presentation for the investor community to highlight the actions taken to ensure the wellbeing of its people and its business continuity in light of the COVID-19 pandemic and show the financial impact of certain financial risks associated with this scenario.

The presentation is available here.

In light of the emerging public health impact of the coronavirus outbreak (COVID-19) in Chile, and to ensure the safety and wellbeing of the Company’s employees and shareholders, the Company has decided to postpone the Extraordinary Shareholders Meeting (JEA) to approve a US$500 million Capital Increase.

 

AES Gener’s Board of Directors has decided to postpone the Extraordinary Shareholders Meeting, originally scheduled to take place on March 19, 2020, until immediately after the Annual Shareholders Meeting (JOA) on April 16, 2020.

 

To ensure the safety and wellbeing our all attendees, the Company will implement mechanisms to allow shareholders to participate remotely.

 

Further details regarding these shareholder meetings are included in the Material Fact filed by the Company with the Chilean Commission for the Financial Market (CMF).

 

The Company continues to monitor the progression of the virus and has taken a proactive approach and has adopted preventive measures at its operations in Chile, Colombia, and Argentina. In addition to postponing the Extraordinary Shareholders Meeting, the Company is also implementing protocols to reduce and diminish the spread rate of COVID-19 and ensure business continuity. These include: virus education and sanitizing protocols; the elimination of all non-essential travel; and non-essential operations and administrative staff have been asked to remain at home and work remotely. As this unprecedented situation continues to evolve, we appreciate our shareholders’ understanding and support of a virtual platform, and we look forward to the upcoming shareholder meetings.

AES Gener continues executing its share repurchase program.

On Friday, March 13, 2020, the company purchased 420,805 shares at an average price of CLP132.38/share on the Santiago stock exchange.

After these transactions, AES Gener currently owns 15,309,673 shares, representing a 0.1823% stake of the company’s shares.

Here you can find the share repurchase protocol approved by the Board of Directors of AES Gener, in accordance with the 5-year share repurchase program approved at the Extraordinary Shareholders’ Meeting held on December 17, 2020.

The company will continue to report in a timely manner further purchases on its website

AES Gener continues executing its share repurchase program.

On Wednesday, March 11, 2020, the company purchased 2,198,603 shares at an average price of CLP136.45/share on the Santiago stock exchange.

On Thursday, March 12, 2020, the company purchased 1,377,198 shares at an average price of CLP129.17/share on the Santiago stock exchange.

After these transactions, AES Gener currently owns 14,888,868 shares, representing a 0.1772% stake of the company’s shares.

Here you can find the share repurchase protocol approved by the Board of Directors of AES Gener, in accordance with the 5-year share repurchase program approved at the Extraordinary Shareholders’ Meeting held on December 17, 2020.

The company will continue to report in a timely manner further purchases on its website.

AES Gener continues executing its share repurchase program.

On Tuesday, March 10, 2020, the company purchased 2,264,379 shares at an average price of CLP132.46/share on the Santiago stock exchange.

After these transactions, AES Gener currently owns 11,313,067 shares, representing a 0.1347% stake of the company’s shares.

Here you can find the share repurchase protocol approved by the Board of Directors of AES Gener, in accordance with the 5-year share repurchase program approved at the Extraordinary Shareholders’ Meeting held on December 17, 2020.

The company will continue to report in a timely manner further purchases on its website.

The presentation from the meetings held with investors during March, 2020, is available here.

AES Gener continues executing its share repurchase program.

On Monday, March 9, 2020, the company purchased 2,351,320 shares at an average price of CLP126.12/share on the Santiago stock exchange.

After these transactions, AES Gener currently owns 9,048,688 shares, representing a 0.1077% stake of the company’s shares.

Here you can find the share repurchase protocol approved by the Board of Directors of AES Gener, in accordance with the 5-year share repurchase program approved at the Extraordinary Shareholders’ Meeting held on December 17, 2020.

The company will continue to report in a timely manner further purchases on its website.

AES Gener continues executing its share repurchase program.

On Friday, March 6, 2020, the company purchased 2,303,479 shares at an average price of CLP130.15/share on the Santiago stock exchange.

After these transactions, AES Gener currently owns 6,697,368 shares, representing a 0.0797% stake of the company’s shares.

Here you can find the share repurchase protocol approved by the Board of Directors of AES Gener, in accordance with the 5-year share repurchase program approved at the Extraordinary Shareholders’ Meeting held on December 17, 2020.

The company will continue to report in a timely manner further purchases on its website.

Presentation from the Analyst Breakfast held in Santiago, Chile on March 6, 2020, is available here.

AES Gener continues executing its share repurchase program.

On Wednesday, March 4, 2020, the company purchased 188,299 shares at an average price of CLP127.00/share on the Santiago stock exchange.

On Thursday, March 5, 2020, the company purchased 2,005,657 shares at an average price of CLP129.65/share on the Santiago stock exchange.

After these transactions, AES Gener currently owns 4,393,889 shares, representing a 0.052% stake of the company’s shares.

Here you can find the share repurchase protocol approved by the Board of Directors of AES Gener, in accordance with the 5-year share repurchase program approved at the Extraordinary Shareholders’ Meeting held on December 17, 2020.

The company will continue to report in a timely manner further purchases on its website.

After receiving approval from the Board of Directors on Thursday, February 27, 2020, AES Gener began the execution of its share repurchase program.

On Friday, February 28, 2020, the company purchased 2,000,000 shares at an average price of CLP123.92/share Santiago stock exchange.

On Tuesday, March 3, 2020, the company purchased 199,933 shares at an average price of CLP126.50/share on the Santiago stock exchange.

After these transactions, AES Gener currently owns 2,199,933 shares, representing a 0.026% stake of the company’s shares.

Here you can find the share repurchase protocol approved by the Board of Directors of AES Gener, in accordance with the 5-year share repurchase program approved at the Extraordinary Shareholders’ Meeting held on December 17, 2020.

The company will report in a timely manner further purchases on its website.

 

Teck Resources Limited (TSX: TECK.A and TECK.B, NYSE: TECK) and The AES Corporation (NYSE: AES) announced today that their Chilean affiliates, Compañía Minera Teck Quebrada Blanca S.A. («CMTQB») and AES Gener S.A (AES Gener), have entered into a long-term power purchase agreement for the Quebrada Blanca Phase 2 copper project («QB2») in Chile, enabling the transition to renewable energy for approximately half the power required for operation of QB2.

Under this arrangement, CMTQB will source 118 Megawatts (MW) for Quebrada Blanca Phase 2 from AES Gener’s growing renewable portfolio of wind, solar and hydroelectric energy, in addition to the 21 MW of solar power already contracted from AES Gener. Once effective, more than 50% of QB2’s total operating power needs are expected to be from renewable sources.

The transition to renewable power will replace QB2’s previous fossil fuel power sources which will avoid approximately 800,000 tonnes of greenhouse gas (GHG) emissions annually. That is equivalent to the emissions of about 170,000 combustion engine passenger vehicles – equal to permanently parking more than half of all the cars in the City of Vancouver or all the cars in the Tarapacá Region of Chile where QB2 is located.

“Switching to renewable power for QB2 is part of Teck’s ongoing work to reduce emissions, achieve carbon neutrality across our business, and support global action on climate change,” said Don Lindsay, President and CEO of Teck. “This agreement secures reliable, long-term power for our major copper growth project at no additional cost, while helping to reduce our environmental footprint. We will continue to explore further opportunities to increase the use of renewable energy as part of Teck’s ongoing focus on decarbonisation.”

“We are proud to work with our customers in the transition to a low-carbon energy future,” said Andrés Gluski, President and CEO of AES. “We have a long-term relationship with Teck and are happy to support their evolving energy needs.”

“Securing zero-carbon, renewable power for QB2 is part of Teck’s commitment to environmental responsibility in every aspect of our business,” said Chris Dechert, Vice President, South America, Teck. “QB2 will be a major producer of copper, a critical material for building the low-carbon economy.”

“At AES Gener, we are contributing to the mining sector’s goal of being more sustainable while supporting the decarbonisation of the Chilean energy matrix. With our Greentegra strategy and our Coal to Green solution, we enable our customers to become greener and more competitive by replacing coal-based energy sources with renewables,» said Ricardo Manuel Falú, AES Gener’s Chief Executive Officer.

QB2 is one of the world’s largest undeveloped copper resources. It is currently under construction and when complete, will be a premier asset with low operating costs, an initial mine life of 28 years and significant potential for further growth. In addition to renewable power, QB2 will also feature the first large-scale use of desalinated seawater for mining in the Tarapacá Region of Chile, in place of freshwater use.

This week, Teck announced a goal of becoming carbon neutral across its operations and activities by 2050. This objective builds on Teck’s progress on climate action to date, including implementing projects and initiatives to reduce GHG emissions at its operations by 289,000 tonnes since 2011 – the equivalent to taking over 88,000 combustion engine cars off the road – and 81% of Teck’s current total electricity consumption is from renewable energy sources.

Similarly, AES is committed to reducing its carbon intensity by 50% by 2022 and 70 percent by 2030, compared to a 2016 baseline. Aligned with that goal, AES Gener is leading the decarbonisation efforts in Chile, with the largest amount of renewable energy capacity under construction in that country.

The renewable power arrangement will come into effect as early as January 2022 and will run through October 2042. CMTQB’s other arrangements with AES Gener, totaling 122 MW of power, are not impacted.

The terms of the agreement are confidential.

Andrés Gluski, Chairman of the Board and CEO of The AES Corporation, resigned from his role as a member of the board of directors of AES Gener today, in line with international best practices on corporate governance for CEOs of publicly listed companies.

Andrés Gluski said that “I have had the honor of being part of the board of AES Gener for two decades. I have witnessed how the company has transformed, overcame enormous challenges and has made important contributions to Chile’s power and business sector. It is a great company and I am sure that it will continue to successfully execute its renewable energy growth strategy, contributing to the sustainable development of Chile.”

Arminio Borjas will replace Gluski as a Director on the board of AES Gener. Borjas has been part of the board of AES Gener for 12 years and most recently served as Gluski’s substitute director up until today.

AES Gener shareholders approved a share repurchase program at today’s Extraordinary Shareholders’ Meeting, which was proposed by the Board of Directors.

The Board of Directors was authorized to define the mechanism through which the repurchase of shares will be carried out. The alternatives include direct purchases on the stock exchange, public offering of shares (know as an OPA in Spanish), and or other mechanisms that allow pro-rata acquisitions.

The repurchase program was approved for a five year period, starting today.

The program cannot exceed the value of the Company’s retained earnings.

The Company can hold up to five percent of the company’s shares. In the case of direct purchases on the stock market, The Company can repurchase no more than 1% of its shares through direct purchases on the stock exchange during any 12-month period.

The Company must resell the shares within a 24-month period since their purchase.

AES Gener CEO, Ricardo Manuel Falú, explained that the goal of the program is to invest in the company’s shares to obtain profitability from the variations in the stock price, during the duration of the program and the resale to the market of the shares, all per the current regulations.

Falú added, «the company is making steady progress in the execution of its Greentegra strategy and the total return for its shareholders since the launch of the new strategy has been the highest in the sector. However, we believe that the share price does not yet reflect the intrinsic value of the company and its new strategy.»

Today, AES Gener’s Board of Directors agreed to call an extraordinary shareholder meeting on December 17, 2019.

The meeting will aim to discuss and agree on the creation of a program for the acquisition of the Company’s shares under the terms established in article 27, number 4 of the law on Public Limited Companies.

For more information, visit Shareholders – Shareholders Meetings

The Company recorded EBITDA of US$237 million in the third quarter of 2019, 2% above the US$232 million achieved in the same period in 2018 due to better operational performance in Colombia and Argentina partially offset by the deconsolidation of assets sold in Chile during 2018.

  • EBITDA in the Chilean market reached US$136 million, down 3% from the third quarter of 2018. The lack of contributions from Compañía Transmisora del Norte Grande (CTNG) sold last year, lower Contract sales volume and lower coal-fired generation due to scheduled maintenance at Ventanas Complex, were the main negative drivers. Operational efficiencies and lower spot purchase prices helped offset the decline.
  • EBITDA in Colombia reached US$85 million in the third quarter of 2019, representing an 8% increase over the same period in 2018. The higher spot prices in the third quarter due to drier hydrology boosted spot revenues was the main driver for the increase in Colombia. This positive driver was partially offset by the negative effect of the depreciation of the Colombian Peso against the US Dollar, lower contract prices, and the decrease in generation due to lower inflows.
  • EBITDA in Argentina reached US$16 million during the third quarter of 2019, representing a 16% increase. Higher contract sales margins and the positive impact of the depreciation of the Argentine Peso against the US Dollar on ARS denominated fixed costs were the main reason for the increase. Lower spot sales prices associated to Res 1/2019 which took effect March 1, 2019, partially offset the positive drivers.

Net Income Attributable to Parent (“Net Income”) reached US$97 million in the third quarter of 2019, up 59% from the third quarter of 2018 driven by a decrease in other losses and better operating results in Colombia and Argentina.

HIGHLIGHTS AND RECENT EVENTS

Greentegra Strategy Execution

AES Gener S.A. (hereinafter referred to as AES Gener, Gener, or the Company) continues to expand its portfolio, incorporating new customers, increasing the supply of new energy contracts through its Greentegra strategy.

The company has signed 6.5TWh/year in Greentegra contracts to date in Chile and Colombia.

AES Gener continues advancing with the development of its +4,700MW pipeline of renewables and energy storage project pipeline.

 

Chile
  • The company signed a 440GWh/year long-term supply contract with Google in the third quarter. The PPA started supplying Google’s Latin America data center in 2019 and up until 2035. New wind and solar assets will provide renewable energy to Google’s operations in Santiago.
  • On September 17, AES Gener subscribed an agreement with Empresas Públicas de Medellín (EPM), for the acquisition of the 110MW Los Cururos wind farm, located in the Coquimbo Region in Chile, in operation since July 2014. The transaction also includes the acquisition of the La Cebada substation, which is part of the National Transmission System. The total price for both assets amounts to US$138 million. The transaction is subject to compliance with a series of preceding conditions, expected to be closed during the fourth quarter of 2019.
  • Construction of the 531MW Alto Maipo Hydroelectric Project is moving ahead. The total project completion to date is 82%, with 59 kilometers of tunnels excavated.
  • Construction has begun on the 80MW expansion of the Andes Solar plant in Chile’s Antofagasta Region, and at the Mesamávida (62 MW) and Los Olmos (101 MW) wind projects in southern Chile’s Biobio region.
  • The Campo Lindo (72 MW) wind project is on track to reach Ready to Build status by the end of 2019 in close to the town of Mulchén in southern Chile.
  • The company broke ground on its Virtual Reservoir Energy Storage pilot project in Chile, on April 26, 2019. The company is installing the proof of concept next to the existing Alfalfal I run-of-river hydro plant close to Santiago. The storage system will be able to supply 10MW over 5 hours and will provide the run of river hydro plant with the ability to store energy and later inject it into the grid during times of high demand. After its installation and entrance into operation, the company will evaluate the expansion of the energy storage system up to 250MW at the Cordillera hydro complex. AES Gener is a pioneer and leader in Latin America in energy storage with 52MW in operation in northern Chile.
  • On June 4, 2019, AES Gener signed a voluntary bilateral agreement with Chile’s Ministry of Energy of Chile for the Disconnection and Cease of Operations of the company’s oldest coal-fired units, Ventanas 1 and 2. The units will enter into the new Strategic Backup Operational State called “ERE,” once the authorities incorporate this new operational state into the current regulation. Ventanas 1 is expected to go into ERE in November 2022, while Ventanas 2 will do the same in May 2024. Both units are expected to remain in “ERE” for up to five years, collecting 60% of capacity payments, before ultimately being disconnected from the system.

 

Colombia
  • On October 18, 2019, with the presence of the President of the Republic of Colombia, the 21 MW Castilla solar plant in Colombia was inaugurated the first solar park for Ecopetrol in the municipality of Castilla. The plant will deliver energy over 15 years to the operations of Ecopetrol at the Castilla oil field. This agreement is one of the new contracts signed under the «GenerFlex» business solution, which offers a broad spectrum of energy services to new and existing clients.
  • In February 2019 the company completed the acquisition of five wind generation projects in Colombia totaling 648 MW in the Jemeiwaa-Kai Portfolio. Located in an area of abundant wind in the Guajira peninsula, the projects have a world-class capacity factor of approximately 54%. Most of these projects have guaranteed transmission capacity. Jemeiwaa-Kai is vital to support the transformation of the Company’s Colombian operations into a renewable energy growth platform while providing a strong complement to its existing hydro assets, bolstering long-term contracting efforts.
    • The largest project, 180MW Casa Eléctrica, was awarded a 20-year Reliability Charge for 324 GWh/year in late-February 2019.
    • In October 23, AES Chivor was awarded a total of 1.3 GWh/year associated to Jemeiwaa-Kai projects, Casa Eléctrica (180 MW) and Apotolorru (75 MW) in the Colombia’s Regulated Renewable Energy Auction. The auction assigned a total of 4.4 GWh/year in contracts at average awarded price was COP97 / kWh. Jemeiwaa-Kai’s project were awarded contracts at an average price of COP100/kWh.
  • AES Chivor signed a PPA with Gensa for 876 GWh/year starting in 2023 for 15 years. This contract is also under the “GenerFlex” strategy.
  • In total the company has signed 2.4TWh in long term contracts in Colombia with regulated and unregulated customers, with tenors ranging from 10 to 15 years. These longer tenor contracts provide certainty that allows us to move ahead with the development of renewable projects in Colombia.

 

Financial Highlights

  • The Shareholders voted to distribute approximately US$287 million in dividends during 2019, equal to 100% of Net Income in 2018. US$86 million was paid on May 24, 2019. The remaining $201 million will be paid on December 4, 2019.
  • Fitch and S&P Ratings reaffirmed AES Gener’s BBB- rating on August 6, and September 4, 2019 respectively.
    Moody’s reaffirmed AES Gener’s investment-grade rating on May 13, 2019.
    S&P
  • In March, AES Gener issued a 2079 hybrid bond for US$550 million at 7.125%, achieving a significant reduction interest rate compared to the 2073 hybrids bonds issued in 2013 at 8.375%. The proceed from the 2079 bond issuance were used to tender the US$450 million in outstanding 2073 notes as well as other general corporate uses.
  • In October, AES Gener issued a 2079 hybrid green bond for US$450 million at 6.35% The proceed from the 2079 bond issuance will be refinance Gener 2021 and 2025 bonds and to fund the acquisition of the Los Cururos wind farm as well as other to finance green projects. This is the first hybrid green bond issued in Latin America.
  • At the end of October, AES Gener’s subsidiary Empresa Eléctrica Cochrane issued US$915 million in a mix of local and international bonds at a blended rate of 5.9%, expiring in 2034. These two facilities will be used to prepay Cochrane’s existing Project Finance Facility, allowing the company to access a corporate-style, more flexible financing structure, releasing US$70 million of inefficient cash sitting in restricted accounts.

CONSOLIDATED FINANCIAL SUMMARY

The numbers presented in the report are rounded to millions; therefore, differences may arise with the financial statements.

 

Financial Summary (ThUS$) YTD YTD Var. 3Q 3Q Var.
2019 2018 % 2019 2018 %
Revenue 1,848,670 1,967,131 -6% 626,876 681,538 -8%
Gross Profit 488,764 526,919 -7% 194,073 184,415 5%
EBITDA (1) 619,180 654,520 -5% 236,800 231,882 2%
Net Income (attributable to AES Gener) 215,271 278,698 -23% 97,066 61,044 59%
Net Cash from Operations 275,439 230,637 19%
Earnings per share (US$) 0.026 0.033   0.012 0.007  

(1) EBITDA is calculated as the sum of gross profit plus administrative expenses, depreciation, and other minor adjustments.

 

 Below you will find the Earnings Report for the third quarter of 2019.

For historical info, please check out the Finacial section of our Investor Relations website

A conference call will be held tomorrow, Wednesday, November 6, 2019 at 12:30 PM Chile (10:30 AM ET).

To access the live webcast, log on at  https://edge.media-server.com/mmc/p/7jjk942q 

A recording of this webcast will also be available for approximately one year after the call.

Dividend: US$0.0239147/share
Payment date: December 4, 2019
Ex-Dividend Date: November 28, 2019

AES Gener will report its financial results for the Third Quarter of 2019 on Tuesday, November 5, 2019, after market close.

A conference call will be held on Wednesday, November 6, 2019, at 12:30 PM Chile (10:30 AM ET).

To access the live webcast, log on here

 

A recording of this webcast will also be available for approximately one year after the call.

 

In case you need further information, please contact:

 

Juan-Luis Carrasco, Head of Investor Relations at (+56 2) 2686 8842, Email: juan.carrasco@aes.com

John Wills, Investor Relations Analyst, at (+56 2) 2686 8811, Email: johnw.wills@aes.com

AES Gener and its subsidiary Norgener Renovables SpA have signed a sales and purchase agreement (“SPA”) for the acquisition of a 110MW wind farm and substation in northern Chile with EPM Chile S.A., the Chilean subsidiary of Empresas Públicas de Medellin E.S.P.

This transaction is part of AES Gener’s Greentegra strategy to increase renewable energy capacity in its portfolio, aligned with its commitment to reduce the carbon intensity of the Chilean power grid.

The 110MW Los Cururos wind farm is located in Chile’s northern 4th region, near the town of Ovalle.

The La Cebada substation is part of Chile’s SEN national power system.

The total price of the transaction is US$ 138mn subject to the terms and conditions of the SPA.

For further details please see the attached Material Fact in Spanish, the English Translation of the material fact or feel free to contact:

Juan-Luis Carrasco, Head of Investor Relations at (+56 2) 2686 8842, Email: juan.carrasco@aes.com

John Wills, Investor Relations Analyst, at (+56 2) 2686 8811, Email: johnw.wills@aes.com

 

Hecho Esencial – AES Gener- SPA Los Cururos

Material Fact – AES Gener SPA Los Cururos

AES Gener will report its financial results for the Second Quarter of 2019 on Monday, August 5, 2019, after market close.

A conference call will be held on Tuesday, August 6, 2019, at 10:30 AM Chile (10:30 AM EDT).

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/qhkugaiz

 

A recording of this webcast will also be available for approximately one year after the call.

 

In case you need further information, please contact:

 

Juan-Luis Carrasco, Head of Investor Relations at (+56 2) 2686 8842, Email: juan.carrasco@aes.com

John Wills, Investor Relations Analyst, at (+56 2) 2686 8811, Email: johnw.wills@aes.com

Today, AES Gener S.A. (the “Company”), together with the Ministry of Energy of Chile, signed a Bilateral Agreement for the Disconnection and Cease of Operations of its oldest coal-fired units, Ventanas 1 and Ventanas 2.

 

We are committing to put Ventanas 1 (114MW) and Ventanas 2 (208MW) into the new Strategic Reserve Operational State called “ERE”, once it’s implemented by the regulator.  Ventanas 1 is expected to go into ERE on November 1, 2022, while Ventanas 2 will do the same on May 1, 2024.  Both units are expected to be maintained as «strategic reserve» for 5 years, collecting 60% of capacity payments

 

 AES Gener’s take on the Agreement

  • We appreciate the agreement as it sets a path to gradually phase out coal assets from the system, with clear rules and in a manner that mitigates potential adverse impacts on the grid.
  • We are well positioned in this new scenario as approximately 70% of our coal plants were commissioned in the last 10 years.
  • Ventanas 1 and 2 were built in 1964 and 1977, respectively.
  • Our remaining portfolio will be key to ensure a smooth transition throughout 2040, by providing efficient and reliable 24/7 power supply with the latest emission abatement technology, supporting the addition of renewable capacity.
  • This agreement gives clarity as to what plants will go into ERE in the next five years.
  • In 2025, and every five years thereafter, the parties will set new targets for retiring coal units.
  • Under this status, units will be out of dispatch, but they must remain available to operate with a minimum of 60-days notice.

 

Attachments:
Original Spanish Agreement signed by AES Gener and the  Ministry of Energy of Chile

Original Spanish Annex regarding the Strategic Reserve Operational State called “ERE”

English translation of the Material fact sent to the CMV this morning.

 

Today, AES Gener, together with its subsidiary Sociedad Eléctrica Angamos closed the sale of Compañía Transmisora del Norte Grande (CTNG) to Chilquinta Transmisión a subsidiary of Chilquinta Energía for US$ 225.5 million

CTNG accounts for approximately 20% of the transmission assets in AES Gener’s portfolio, including 316km of lines and substations in the Chilean Regions of Valparaiso, Antofagasta and Metropolitan Region.

The sale of CTNG is part of the AES Gener’s strategy to maintain generation assets with long-term energy sales contracts within its portfolio and divest non-core assets.

The proceeds from the sale will primarily be used to pay debt and will have a positive effect of approximately USD 100 million on the results of the Company.

Here you can find an English translation of the original Material Fact submitted to the CMF in Spanish.

Today, the subsidiary of AES Gener in Colombia, AES Chivor, was awarded a contract for the construction and operation of Ecopetrol’s first solar park in the municipality of Castilla La Nueva, Colombia.

The solar farm will have an installed capacity of 20.4MW allowing it to supply a 15-year PPA with Ecopetrol’s Castilla oil field and become the largest off-grid solar project in Colombia.

Construction of the solar plant will begin in April 2019 and with operations starting in the second half of 2019. Once complete the project will effectively double the installed solar capacity of AES Gener.

Ricardo Manuel Falú, AES Gener CEO, said that the awarded contract is a key step in the implementation of the company’s new strategy to generate long-term relationships with its commercial partners, accelerating a more secure and sustainable energy future.

«We are very grateful for the trust Ecopetrol has placed in us and we hope this relationship will grow deeper and expand over time in order to fulfill our shared objective of having a diversified and sustainable energy matrix,» said Falú.

«This milestone marks an important step in Ecopetrol’s foray into solar energy projects and is aligned with the company’s goal of having a more diversified and cleaner energy matrix,» Ecopetrol CEO Felipe Bayón said.

Ecopetrol, the largest company in Colombia, is an integrated oil company and is among the 40 largest oil companies in the world and among the four largest in Latin America.

AES Gener and Minera Candelaria, controlled by the Canadian-based Lundin Mining Corporation, have signed a long-term renewable energy supply contract.

The new contract, for 1,100 GWh/year, will be supplied by AES Gener with renewable energy and agreed on terms for up to 18 years, starting in 2023. The contract will facilitate the long-term green energy supply to Minera Candelaria reducing costs and allowing for the continued optimization of the mining operations.

AES Gener’s CEO, Ricardo Manuel Falú, said that this contract is an important step in the implementation of the company’s new strategy, aimed at extending long-term relationships with its commercial partners and making the supply of electricity in Chile greener and more sustainable.

«The agreement with Minera Candelaria is framed within the new business solution of Green Blend and Extend (Blextend) of AES Gener, which extends the existing contractual and business relationship with our business partners based on a power supply completely renewable and competitive, aligned with our mission to improve lives by accelerating a safer and greener energy future», said AES Gener’s CEO.

Falú added that the contract also establishes that AES Gener will work with Minera Candelaria in optimizing the electricity consumption, energy efficiency, energy storage, electromobility, self-generation, and back-up projects of the sites.

On the other hand, Phillip Brumit, President of Minera Candelaria said, “This strategic alliance with AES Gener is important for the future of our operations. It ensures the supply of vital energy to our production process aligned with a strong commitment to sustainability and innovation. This is another step that will help us fulfill our mission of being a world-class mining operation that contributes to the development and well-being of our workers, the communities, the Atacama Region and Chile.»

On September 28, 2018, the AES Gener board of directors unanimously voted to distribute the remaining US$129,163,303 in 2018 dividends approved in the shareholders meeting, on November 29, 2018.

The dividend of approximately US$ 0.0153759 per share will be paid to all shareholders of record at midnight on November 23, 2018.

Dividends will be paid in Chilean pesos unless shareholders otherwise request to receive US dollars.

The company has repurchased bonds totaling $528 million over the past 8 months in order to strengthen its capital structure

The offer to purchase bonds launched by AES Gener and Eléctrica Angamos during June had a good reception among investors.

Yesterday, when the early tender period expired, bonds totaling $200 million were tendered, out of which $100 million correspond to Eléctrica Angamos bonds due on 2029 and the remaining $100 million correspond to AES Gener bonds due on 2021.

Ricardo Roizen, Chief Financial Officer of AES Gener, stated that the objective of this transaction is to decrease the company’s leverage and strengthen its capital structure. He also noted that after this transaction is closed, AES Gener would reach $528 million in debt repurchases over the past 8 months, in line with expectations from rating agencies.

The bond repurchase transaction was led by J.P. Morgan and Itaú BBA USA Securities

AES Gener has been the largest energy generator in Chile since 2014. It owns 5,063 MW of installed capacity in the markets in which it operates and is currently building the largest energy project in Chile, Alto Maipo, which will contribute 531 MW of sustainable energy to the grid.

Today, AES Gener and its subsidiary Eléctrica Angamos signed an agreement with Chilquinta Energía to sell 100% of Compañia Transmisora del Norte Grande’s shares, which owns 316 km of the 1,536 km of transmission lines that the AES Gener group owns.

Proceeds from the sale will be used to repay debt in order to continue strengthening the Company’s capital structure

The sale price for these assets was $220 million, a value that will be subject to standard adjustments for this type of transaction.

AES Gener´s CEO, Ricardo Falu, said that the sale of these regulated transmission assets forms part of the company’s new strategy to concentrate on its core assets.
Proceeds from the sale will be used to repay debt in order to continue strengthening the Company’s capital structure
«The funds obtained through this transaction will be used to repay debt, in order to continue strengthening AES Gener’s capital structure» said Falú.

The transaction is subject to the approval of the Chilean anti-trust commission (FNE).

AES Gener has been the largest energy generator in Chile since 2014. It owns 5,063 MW of installed capacity in the markets in which it operates and is currently building the largest energy project in Chile, Alto Maipo, which will contribute 531 MW of sustainable energy to the grid.

BTG Pactual acted as financial advisor to the sellers.

Operation strengthens the capital structure to execute its growth strategy.

Today, AES Gener and its subsidiary Empresa Eléctrica Angamos announced that they have launched offers to purchase their outstanding senior notes maturing in 2021, 2025 and 2029.

The Early Tender Date of the debt buyback program is July 11, 2018, and the tender expiration date is July 25, 2018. Angamos’s bonds maturing in 2029 will have priority over AES Gener’s bonds, with a maximum repurchase amount of US $ 100 million. The second priority of the tender are the AES Gener bonds maturing in 2021 and finally the AES Gener bonds due in 2025. The maximum total amount of this bond tender offer is US $ 200 million.

The repurchase of these bonds will be paid with resources from both companies, therefore, there will not be a new issuance and the repurchased bonds will be retired.

The objective of this operation is to strengthen the capital structure of AES Gener by reducing dollar-denominated corporate debt.

This operation is part of the debt prepayment program that AES Gener began in 2017, to repurchase of more than US $ 560 million, including this offer, with the final objective of strengthening its capital structure.

Itau BBA USA Securities and J.P. Morgan are the Dealer Managers in the Tender Offers.

Today, the Company and its subsidiary Norgener Foreign Investment SpA (the «Sellers»), sold, ceded and transferred to Generadora Metropolitana SpA (who’s indirect shareholders are Andes Mining and Energy Corporate SpA, and EDF Chile SpA) (the «Buyer»), 100% of the shares of Sociedad Eléctrica Santiago SpA (the “Shares”), the company that owns the Renca and Nueva Renca power plants (Metropolitan Region), Los Vientos (V Region) and Santa Lidia (VIII Region).

The aforementioned transaction is part of the commitments made by the Sellers and the Buyer in the agreement signed on December 21, 2017 (the «Agreement»), which was informed to your Commission by a Material Fact, that same date. The sale price of the Shares amounts to USD$ 306,919,345 and is subject to the adjustments and other terms and conditions established in the Agreement.

The sale of the Shares is part of the strategy defined by the Company consisting in maintaining, in its portfolio, generation assets with long-term energy sales contracts.

The funds that the Company has received as a result of this operation are relevant to continue strengthening its capital structure and financing the Company’s growth plan.

Finally, in accordance with the provisions of Circular No. 988 of the Commission, we inform you that the operation reported in this Essential Fact will have a net positive effect on the Company’s results corresponding to the current fiscal year, of USD $ 71 million.

Subject to compliance with certain conditions precedent, Alto Maipo SpA (hereinafter «Alto Maipo»), subsidiary of AES Gener S.A., has successfully completed the financial restructuring process of the Alto Maipo Hydroelectric Project (hereinafter the «Project»). This process contemplates a lump sum, fixed price contract with Strabag, which assumes the geological and construction risks of the Project; with guaranteed completion dates and financial and corporate guarantees provided by Strabag to Alto Maipo. This financial restructuring will allow to fully cover the costs of the Project. The Company had already informed that Commission of the progress of said process in the Material Facts of July 31 and November 27, 2017. Although the documentation of this process with the lenders, contractors and owners of the project, has been signed, the finalization of the financial transaction is subject to wire transfers and other conditions which we expect to be fulfilled today.

1. One of the essential elements in this restructuring process was the signing on February 19, 2018, of a new construction contract between Alto Maipo and Strabag SpA (hereinafter «Strabag») called «Amended and Restated Lump Sum Fixed Price Tunnel Complex Construction Contract” (hereinafter the» Construction Contract «), which includes, among others, the following relevant aspects:
a. Strabag will carry out the works under the modality of lump sum fixed price, assuming the geological and construction risk of the Project;
b. Strabag took over the construction of the works initially assigned to Constructora Nuevo Maipo S.A., in the sector of El Yeso and Volcán;
c. The Construction Contract includes guaranteed completion dates, which are backed by financial guarantees and by Strabag’s parent company, estimating the start of the operations of both plants towards the end of 2020;
d. Strabag will grant financing for part of the cost associated with the new Construction Contract; and
e. The agreement includes an increase in Strabag’s stake in Alto Maipo’s ownership, in the event of the timely completion of certain milestones in the construction of the Project.
2. The signing of the new Construction Contract with Strabag, in the terms outlined above, required the preparation of a new budget for the Project, which now totals 3,048 million dollars, and an additional 392 million dollars that will be paid to Strabag only after the completion of the total construction of the Project, over a 20-year term. This budget has been approved by the institutions that finance it, including the following terms, among others:
a. An additional capital contribution by AES Gener to the Project, of 200 million dollars will be contributed during construction in the same proportion as the lenders disburse their contributions, and up to 200 million in funds that will be provided once the lenders have finished disbursing all the committed debt and to the extent that the funds are required for construction.
b. The lenders have agreed to grant the rest of the already committed financing, up to a total amount of 688 million dollars, and to capitalize interests during the construction, which implies an additional commitment of approximately 135 million dollars.
c. The lenders have agreed to various modifications to the financing contracts of the Project and the financing commitments assumed by each of them.
d. Strabag has agreed to provide financing to the Project, by allowing the 392 million to be repaid over a 20-year period, starting from the end of construction of the Project. Strabag may increase, under certain conditions, its equity participation in Alto Maipo SpA.

Today’s financial restructuring agreement will allow to fully cover the estimated costs of the Project and continue with the development and construction of the Project, which to date is 64% complete. The construction of the Project has never stopped, and currently, more than 4,700 workers work there.

AES Gener held its annual shareholder meeting on April 27, 2018, in Santiago, Chile. The shareholders approved dividends for 2018 and elected a new Board of Directors.

The shareholders approved to pay a total of US$184,518,885 in dividends during 2018, equivalent to US$0.0219657 per share, approximately 100% of the Company’s 2017 net income.

  • The first dividend payment, totaling US$55,355,581, equivalent to US$0.0065897 per share, will be made on May 25, 2018.
  • The Board of Directors will determine the dates for one or more dividend payments for the remaining US$129,163,303 approved by the shareholders to be paid during 2018.

The shareholders appointed the following Board of Directors:

Andrés Gluski – Director
Arminio Borjas – Substitute Director
Radován Razmilic – Director
Francisco Morandi – Substitute Director
Bernerd da Santos – Director
Julian Nebreda – Substitute Director
Manuel Perez Dubuc – Director
Juan Ignacio Rubiolo – Substitute Director
Leonardo Moreno – Director
Gustavo Pimenta – Substitute Director
Gonzalo Parot Palma – Director
Luis Hernán Palacios – Substitute Director
Claudia Bobadilla Ferrer – Director
Antonio Kovacevic – Substitute Director

After the Shareholder Meeting, the new Board of Directors appointed:

  • Bernerd da Santos as Chairman
  •  Director Radován Razmilic and independent directors Gonzalo Parot Palma and Claudia Bobadilla Ferrer to form the Committee of the Board of Directors.

Continuing with the execution of its long term strategy consisting of maintaining in its portfolio generation assets with long-term energy sales contracts. AES Gener announced the sale of 100% of Sociedad Eléctrica Santiago SpA (ESSA) shares to Generadora Metropolitana SpA whose indirect shareholders are AME and EDF Chile.

The operation includes the sale of the Renca and Nueva Renca power plants (in the Metropolitan region), Los Vientos (Valparaíso region) and Santa Lidia (Biobío region), which altogether total 750 MW.

The price of the sale of 100% of ESSA’s shares totaled $300 million dollars.

The deal is subject to Generadora Metropolitana SpA being able to execute financing for the operation no later than December 29, 2017 and compliance, no later than June 30, 2018, of the conditions precedent consisting of, among others, of the approval of the National Economic Prosecutor’s Office and to the reorganization of ESSA in order to transfer the assets free of its US$36 million dollars in financial debt.

The transaction will have a positive effect of approximately USD $65 million on AES Gener’s results for the period in which the sale is executed.
AES Gener CEO, Javier Giorgio, said «it is an attractive deal for both parties without a doubt, as the buyer acquires four thermal power plants in excellent operating conditions, located near the main demand centers of the country.”

The funds from the sale will be used to continue strengthening the company’s capital structure and to finance the company’s growth plan, added Mr. Giorgio

AES Gener decided to increase the amount of the cash tender offer of senior bonds maturing in 2021 and 2025, following positive interest from investors.

Upon closing of the debt buyback program’s early tender date, US$429 million in offers were received. AES Gener reaffirms its commitment to maintain its investment grade rating through the repurchase of US$328 million in principal amount of bonds tendered, US$100 million more than initially announced.

With this repurchase of bonds, the Company continues to strengthen its capital structure with funds from the operation of the last plants that came into operation.

AES Gener is the largest energy producer in Chile.

Please see the attached press release for more details.

AES Gener today announced that it has launched offers to purchase for cash its outstanding 5.000% Senior Notes Due 2025 and its 5.250% Senior Notes Due 2021, upon the terms and conditions described in its Offer to Purchase dated November 30, 2017 (the “Offer to Purchase”).

AES Gener is offering to purchase an aggregate principal amount of Notes that will not result in an aggregate amount that all holders of the Notes are entitled to receive in the Tender Offers, excluding accrued and unpaid interest, that exceeds $245,000,000 (such purchase price, subject to increase by AES Gener the “Aggregate Maximum Purchase Price”).

Each Tender Offer is a separate offer and will expire at 11:59 p.m., New York City time, on December 28, 2017, unless individually amended, extended or terminated by AES Gener (the “expiration date”). No tenders submitted after the expiration date will be valid. Subject to the terms and conditions of the Tender Offers, the consideration for each $1,000 principal amount of the Notes validly tendered and accepted for purchase pursuant to the Tender Offers will be the applicable Tender Offer Consideration set forth in the above table. Holders of Notes that are validly tendered prior to 5:00 p.m., New York City time, on December 13, 2017 (subject to extension, the “early tender time”) and accepted for purchase pursuant to the applicable Tender Offer will receive the applicable Total Consideration set forth in the above table, which includes the applicable Tender Offer Consideration plus the applicable Early Tender Premium. Holders of Notes tendering their Notes after the early tender time will not be eligible to receive the Early Tender Premium. All Notes validly tendered and accepted for purchase pursuant to the Tender Offers will also receive accrued and unpaid interest on such Notes from the last interest payment date with respect to those Notes to, but not including, the applicable settlement date.

Please find the attached full announcement for more details on the Tender Offers.

MATERIAL FACTS

Communications sent to the cmf (chilean securities regulator)

DATE FILING
2021/03/25 Annual Shareholder Meeting to be held on April 23, 2021
2021/03/25 Board of Directors calls for Extraordinary Shareholder Meeting on Eventual Dividend
2021/03/25 Change Corporate Office Address
2021/02/23 AES Gener to sell its stake in Guacolda Energía SpA
2021/02/01 IDB Invest to Finance $44mn of AES Gener´s Stabilization Mechanism ARs
2021/01/20 Goldman Sachs to Finance $90mn of AES Gener´s Stabilization Mechanism ARs
2020/12/29 Retirement of Ventanas 1 & 2
2020/12/28 AES Gener Board of Directors Sets the Price for Capital Increase’s Preferential Rights Period
2020/12/18 AES Gener approves its new General Policy of Habituality
2020/11/20 AES Gener Shareholders approve US$194mn dividend to be paid December 10, 2020
2020/11/05 AES Gener’s Board of Directors calls for Extraordinary Shareholder Meeting to propose Dividend Payment
2020/10/01 AES Gener shareholders vote in favor of postponing Capital Increase until 2021
2020/09/30 Tercer Aviso Citación – JEA Octubre 2020
2020/09/29 AES Gener Accelerates its Decarbonization – Non-Recurring Accounting Adjustment
2020/09/09 Additional information regarding the incorporation of a partner at Cochrane
2020/09/04 AES Gener will incorporate a new Partner into its ownership of Eléctrica Cochrane
2020/08/27 AES Gener’s Board of Directors calls for Extraordinary Shareholder Meeting to extend window for US$500 million Capital Increase
2020/08/20 AES Gener Updates August 2020 Dividend Information
2020/08/08 AES Gener reaches agreement with BHP for US$720mn payment in 2020
2020/07/31 AES Gener Board of Directors approves dividend payment date
2020/05/09 AES Gener Updates May 2020 Dividend Information
2020/04/17 AES Gener Shareholders approve US$116mn dividends in 2020
2020/04/17 AES Gener Shareholders approve US$500mn Capital Increase
2020/04/01 AES Gener Board of Directors approves remote mechanism for Shareholder Meetings
2020/04/01 AES Gener Mourns Death of Board Member, Daniel Stadelmann
2020/03/21 AES Gener Board of Directors proposes US$116mn dividend in 2020
2020/03/21 2020 Annual Shareholder Meeting of AES Gener to be held on April 16, 2020
2020/03/17 AES Gener Postpones Extraordinary Shareholder Meeting
2020/02/28 AES Gener’s Board of Directors calls for Extraordinary Shareholder Meeting to discuss US$500 million Capital Increase
2020/02/28 AES Gener’s Board of Directors approved share repurchase program protocol
2020/01/08 Andrés Gluski resigns from AES Gener Board of Directors
2019/12/17 AES Gener shareholders approve Share Repurchase Program
2019/12/17 AES Gener Willing to Accelerate Decarbonization in Chile
2019/12/02 AES Gener acquires Los Cururos wind farm
2019/11/21 AES Gener calls Extraordinary Shareholder meeting regarding share repurchase
2019/10/28 AES Gener Board of Directors approves dividend payment date
2019/09/17 AES Gener Signs SPA to Acquire Los Cururos Wind Farm
2019/06/11 AES Gener Signs Decarbonization Agreement in Chile – Additional Accounting Information
2019/06/04 AES Gener Signs Decarbonization Agreement in Chile
2019/04/26 AES Gener Shareholders Appoint new Board of Directors at AGM 2019
2019/04/26 AES Gener Shareholders approve US$287mn dividends in 2019
2019/03/29 AES Gener Board of Directors proposes US$287mn dividends in 2019
2019/03/29 2019 Annual Shareholder Meeting of AES Gener to be held on April 26, 2019
2019/03/27 AES Gener Places $550mn in 2079 Hybrid Bond at 7.125%
2019/03/18 AES Gener Announces 2079 Hybrid Bond and Tender of 2073 Hybrid Bond
2018/12/20 AES Gener Board of Directors Appoints New Chairman
2018/12/18 AES Gener closes sale of CTNG transmission assets
2018/10/01 AES Gener dividend payment date set for 29-Nov-2018
2018/07/02 AES Gener to sell 20% of its transmission lines for $220 million
2018/05/10 AES Gener closes sale of Sociedad Eléctrica Santiago
2018/05/08 AES Gener Closes Restructuring Process of Alto Maipo
2018/04/26 AES Gener Board of Directors appoints new Chairman and Committee Members
2018/04/26 AES Gener Shareholders appoint new Board of Directors
2018/04/26 AES Gener Shareholders approve US$185mn dividends in 2018
2018/04/06 Merger of AES Gener subsidiaries
2018/03/28 AES Gener Board of Directors proposes US$185mn dividends in 2018
2018/03/28 2018 Annual Shareholder Meeting of AES Gener to be held on April 26, 2018
2018/03/28 Vineet Mohan Steps Down from AES Gener Board of Directors
2018/02/28 Ricardo Roizen Appointed as CFO of AES Gener
2018/02/05 Ricardo Falú Appointed as CEO of AES Gener
2017/12/21 AES Gener announces sale of Eléctrica Santiago for US$ 300 million
2017/11/27 TRANSMISSION ASSET SALE IN CHILE

Contact Investor Relations

Please contact the AES Gener Investor Relations Team with any questions:

RETAIL SHAREHOLDERS

The AES Gener Sharholders register is administered by SerCor S.A.

Av. El Golf 140, Piso 1, Las Condes – Santiago, Chile +56 2 2364 6785

INSTITUTIONAL SHAREHOLDERS

AES Gener Investor Relations Team:

Rosario Norte 532, Piso 19, Las Condes – Santiago, Chile +56 2 2686 8900

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