<PAGE>
EXHIBIT 99.1
FOR IMMEDIATE RELEASE
AES REPORTS STRONG EARNINGS OF $0.25 PER SHARE FOR THE QUARTER
Diversified Businesses Contribute to Solid, Consistent Growth
ARLINGTON, VA, July 27, 2000 -- The AES Corporation (NYSE: AES)
announced today that net income was $111 million for the quarter ended June 30,
2000, a 56% increase over net income of $71 million for the second quarter of
1999. Diluted earnings per share were $0.25 for the quarter, compared to $0.18
for the same quarter in 1999. Revenues for the quarter were $1.5 billion, an
increase of 140% from $640 million in the second quarter of 1999.
For the six months ended June 30, 2000, net income before extraordinary
item was $292 million or $0.66 per diluted share as compared to $58 million or
$0.16 per diluted share for the same period in 1999. Net income was $285 million
for the six months ended June 30, 2000. Revenues increased 136% for the first
half of 2000 to $3.0 billion.
Barry J. Sharp, Chief Financial Officer, commented, "We are pleased
with our strong second quarter and our growth to record revenues of over $1.5
billion. Our 39% increase in second quarter earnings per share to $0.25 reflects
the diversification and strength of the AES portfolio of generation and
distribution businesses around the world."
Dennis W. Bakke, President and Chief Executive Officer, stated, "We
continue to grow AES' business around the world with significant development
accomplishments. As demonstrated this quarter, we are concentrating our efforts
on long-term, low-cost, clean generation, strong distribution companies, access
to customers and telecom opportunities. The restructuring of the global electric
sector provides us with an ever expanding number of opportunities to serve."
AES also announced today that AES Power Direct reached an agreement in
principle to acquire Titan Energy, Inc. for $5 million. Titan Energy is a
Toronto-based competitive energy retail company serving natural gas to
approximately 135,000 residential and small business customers in the U.S. The
acquisition allows AES Power Direct to immediately establish a significant base
of customers and a natural gas operations infrastructure in geographic regions
that are also in the process of electric deregulation. Titan Energy is currently
providing natural gas to customers in Ohio, Pennsylvania, Maryland, Virginia and
California.
In addition, AES announced that it had recently made an investment in a
small oil and gas business in The Republic of Georgia. The business is a joint
venture with CanArgo, a Canadian oil and gas producer, which has a focus on the
Caucasus and Caspian region. AES will invest $6 million in 2000 and a total of
$10.5 million in the first two years. The business is expected to enhance the
price and security of the fuel supply for AES' thermal generating facilities in
Georgia.
Business development milestones in 2000 include the following:
- In July, AES and IPALCO Enterprises Inc. announced that they entered an
agreement whereby AES will acquire IPALCO Enterprises, Inc.
- In June, AES acquired approximately 87% of the stock of C.A. La
Electricidad de Caracas, an integrated electricity company serving
Caracas, Venezuela.
- In June, a subsidiary of AES completed an $815 million non-recourse
financing for a circulating fluidized bed coal-fired facility currently
being built on the south coast of Puerto Rico.
- In May, a subsidiary of AES acquired 100% of Tractebel Power Ltd.,
("TPL") from Tractebel S.A. With this transaction, AES owns
approximately 92% of NIGEN's common stock.
- In May, AES announced that it won a bid to purchase a 70% interest in
the 1,580 MW Mohave Generating Station in Laughlin, Nevada for
approximately $667 million.
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- In April, AES announced it intends to launch a tender offer to acquire
all outstanding common and preference shares of Brazilian generation
company Compania de Geracao de Energia Eletrica Tiete ("Tiete").
- In March, a subsidiary of AES acquired for $8 million, GeoUtilities
Inc., an internet-based superstore for energy, telecom and other vital
services.
- In March, a subsidiary of AES completed a financing associated with 823
MW of generating facilities in the Republic of Georgia. The financing
included the acquisition of the 600 MW Gardabani thermal plant and the
establishment of 25-year concessions for the Khrami I and II hydro
stations, which have a combined capacity of 223 MW.
- In March, a subsidiary of AES completed a $440 million non-recourse
project financing for AES Red Oak, an 832 MW natural gas-fired combined
cycle plant in Sayerville, New Jersey.
- In February, AES announced that it had entered into an agreement to
acquire a 59% stake in the 1,000 MW hydroelectric facility of
Hidroelectrica Alicura S.A. ("Alicura") in Argentina from Southern
Energy, Inc. ("SEI").
- In February, AES announced that a subsidiary had reached an agreement
with the Bulgarian state-owned electric utility NEK, that will allow
AES to build, own, operate and transfer a $750 million lignite-fired
power plant.
- In January, a subsidiary of AES agreed to acquire 59% of the
outstanding preferred (non-voting) shares of Eletropaulo S.A.
("Eletropaulo").
- In January, a subsidiary of AES and Caterpillar Inc. reached a service
agreement for multiple energy products that will result in the
construction of a 45 MW cogeneration plant in Mossville, Illinois.
AES is a leading global power company comprised of competitive generation,
distribution and retail supply businesses in Argentina, Australia, Bangladesh,
Brazil, Canada, China, Colombia, Dominican Republic, El Salvador, Georgia,
Hungary, India, Kazakhstan, the Netherlands, Mexico, Pakistan, Panama, the
United Kingdom, the United States and Venezuela.
The company's generating assets include interests in one hundred and forty
one facilities totaling over 48 gigawatts of capacity. AES' electricity
distribution network has over 957,000 km of conductor and associated rights of
way and sells over 135,000 gigawatt hours per year to over 19 million end-use
customers. In addition, through its various retail electricity supply
businesses, the company sells electricity to over 154,000 end-use customers.
AES is dedicated to providing electricity worldwide in a socially
responsible way.
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THE AES CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
FOR THE YEARS ENDED JUNE 30, 2000 & 1999
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------------------
QUARTER QUARTER
ENDED ENDED PERCENTAGE
6/30/00 6/30/99 CHANGE
-------------------------------------------------------------------------------------------------------------------------
($ in millions, except per share amounts)
<S> <C> <C> <C>
REVENUES:
Sales and services $ 1,538 $ 640 140%
OPERATING COSTS
AND EXPENSES:
Cost of sales
and services 1,203 412 (192%)
Selling, general and
administrative expenses 19 15 (27%)
--------------------- --------------------
TOTAL OPERATING COSTS
AND EXPENSES 1,222 427 (186%)
--------------------- --------------------
OPERATING INCOME 316 213 48%
OTHER INCOME AND
(EXPENSE):
Interest expense (313) (143) (119%)
Interest and other income 69 12 475%
Equity in earnings of
affiliates (before income tax) 99 37 168%
--------------------- --------------------
INCOME BEFORE
INCOME TAXES
AND MINORITY
INTEREST 171 119 44%
Income tax provision 43 34 (26%)
Minority interest 17 14 (21%)
--------------------- --------------------
NET INCOME $ 111 $ 71 56%
===================== ====================
DILUTED EARNINGS
PER SHARE: $ 0.25 $ 0.18 39%
===================== ====================
Diluted weighted average
shares outstanding (in millions) 457 407
=== ===
</TABLE>
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<TABLE>
<CAPTION>
THE AES CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
FOR THE YEARS ENDED JUNE 30, 2000 & 1999
-------------------------------------------------------------------------------------------------------
6 MONTHS 6 MONTHS
ENDED ENDED PERCENTAGE
6/30/00 6/30/99 CHANGE
-------------------------------------------------------------------------------------------------------
($ in millions, except per share amounts)
<S> <C> <C> <C>
REVENUES:
Sales and services $ 3,014 $ 1,278 136%
OPERATING COSTS
AND EXPENSES:
Cost of sales
and services 2,260 830 (172%)
Selling, general and
administrative expenses 48 31 (55%)
----------------- -----------------
TOTAL OPERATING COSTS
AND EXPENSES 2,308 861 (168%)
----------------- -----------------
OPERATING INCOME 706 417 69%
OTHER INCOME AND
(EXPENSE):
Interest expense (582) (276) (111%)
Interest and other income 100 31 223%
Equity in earnings of
affiliates (before income tax) 217 (54) 502%
----------------- -----------------
INCOME BEFORE
INCOME TAXES
AND MINORITY
INTEREST 441 118 274%
Income tax provision 114 28 (307%)
Minority interest 35 32 (9%)
----------------- -----------------
INCOME BEFORE
EXTRAORDINARY ITEM 292 58 403%
Extraordinary item, net of tax -
Early extinguishment of debt (7) - n/a
----------------- -----------------
NET INCOME $ 285 $ 58 391%
================= =================
DILUTED EARNINGS
PER SHARE:
Before extraordinary item 0.66 0.16 313%
Extraordinary item (0.02) - n/a
----------------- -----------------
Total $ 0.64 $ 0.16 300%
================= =================
Diluted weighted average
shares outstanding (in millions) 462 377
=== ===
</TABLE>
