AES Announces Signing of Heads of Terms Agreement at Maritza in Bulgaria
April 08 2015 - 6:20AM
Business Wire
The AES Corporation (NYSE:AES) announced that one of its
subsidiaries, AES 3C Maritza East I (Maritza) has signed a Heads of
Terms Agreement (HTA) with NEK, the state-owned wholesale power
company. Under the framework set forth in the HTA, both parties
will endeavor to make certain changes to the Power Purchase
Agreement (PPA), under which Maritza sells its output to NEK
through 2026 (PPA Term). Maritza and NEK agreed to reduce the
capacity payment to Maritza under the PPA by 14 percent through the
PPA Term. In exchange, NEK will pay Maritza its full outstanding
receivables, which as of March 31, 2015 were approximately $236
million. A binding agreement is expected to be signed by the third
quarter of 2015 and is subject to customary regulatory
approvals.
“I am pleased to report that we have reached a framework to
settle Maritza’s outstanding receivables,” said Andrés Gluski, AES
President and Chief Executive Officer. “This agreement is one
component of the Government of Bulgaria’s plan to strengthen the
liquidity position of Maritza’s offtaker, NEK. It is a win-win
proposition that helps to create a sustainable electricity
sector.”
The terms of the HTA, once implemented, will have an approximate
$0.03 per share annual impact on the Company’s Adjusted EPS, which
has been reflected in the Company’s 2015 guidance and expectations
through 2018 provided on its fourth quarter earnings call on
February 26, 2015.
About AES
The AES Corporation (NYSE: AES) is a Fortune 200 global power
company. We provide affordable, sustainable energy to 18 countries
through our diverse portfolio of distribution businesses as well as
thermal and renewable generation facilities. Our workforce of
18,500 people is committed to operational excellence and meeting
the world’s changing power needs. Our 2014 revenues were $17
billion and we own and manage $39 billion in total assets. To
learn more, please visit www.aes.com. Follow AES on Twitter
@TheAESCorp.
Safe Harbor Disclosure
This news release contains forward-looking statements within the
meaning of the Securities Act of 1933 and of the Securities
Exchange Act of 1934. Such forward-looking statements include, but
are not limited to, those related to future earnings, growth and
financial and operating performance. Forward-looking statements are
not intended to be a guarantee of future results, but instead
constitute AES’ current expectations based on reasonable
assumptions. Forecasted financial information is based on certain
material assumptions. These assumptions include, but are not
limited to, our accurate projections of future interest rates,
commodity price and foreign currency pricing, continued normal
levels of operating performance and electricity volume at our
distribution companies and operational performance at our
generation businesses consistent with historical levels, as well as
achievements of planned productivity improvements and incremental
growth investments at normalized investment levels and rates of
return consistent with prior experience.
Actual results could differ materially from those projected in
our forward-looking statements due to risks, uncertainties and
other factors. Important factors that could affect actual results
are discussed in AES’ filings with the Securities and Exchange
Commission (the “SEC”), including, but not limited to, the risks
discussed under Item 1A “Risk Factors” and Item 7:
Management’s Discussion & Analysis in AES’ 2014 Annual
Report on Form 10-K and in subsequent reports filed with the SEC.
Readers are encouraged to read AES’ filings to learn more about the
risk factors associated with AES’ business. AES undertakes no
obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or
otherwise.
Any Stockholder who desires a copy of the Company’s 2014 Annual
Report on Form 10-K dated on or about February 25, 2015 with
the SEC may obtain a copy (excluding Exhibits) without charge by
addressing a request to the Office of the Corporate Secretary, The
AES Corporation, 4300 Wilson Boulevard, Arlington, Virginia 22203.
Exhibits also may be requested, but a charge equal to the
reproduction cost thereof will be made. A copy of the Form 10-K may
be obtained by visiting the Company’s website
at www.aes.com.
The AES CorporationInvestor:Ahmed Pasha, 703-682-6451orMedia:Amy
Ackerman, 703-682-6399
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