<PAGE>
EXHIBIT 99.1
FOR IMMEDIATE RELEASE
AES REPORTS EARNINGS OF $0.29 PER SHARE FOR THE QUARTER,
UP 93% FROM YEAR EARLIER
DIVERSE BUSINESSES AGAIN CONTRIBUTE TO PREDICTABLE EARNINGS PERFORMANCE
ARLINGTON, VA, OCTOBER 26, 2000 -- The AES Corporation (NYSE: AES) announced
today that net income was $134 million for the quarter ended September 30, 2000,
a 131% increase over net income of $58 million for the third quarter of 1999.
Diluted earnings per share were $0.29 for the quarter, compared to $0.15 for the
same quarter in 1999. Revenues for the quarter were $1.8 billion, an increase of
108% from $847 million in the third quarter of 1999.
For the nine months ended September 30, 2000, net income before extraordinary
item was $427 million or $0.95 per diluted share as compared to $116 million or
$0.30 per diluted share for the same period in 1999. Net income was $420 million
for the nine months ended September 30, 2000. Revenues increased 125% for the
nine months ended September 30, 2000 to $4.8 billion.
Barry J. Sharp, Chief Financial Officer, commented, "Our results for the third
quarter continue to show the strength of our diversified portfolio of businesses
around the world. Net income and earnings per share growth over last year were
131% and 93% percent, respectively. This reflects significant improvement in
operating results, particularly from South America, including Brazil and
Venezuela, and despite the offsetting impact of foreign currency transaction
losses that amounted to approximately $.04 per share in the 2000 quarter and
$.10 per share in the 1999 quarter. Revenues also grew 108% in the third quarter
to approximately $1.8 billion, bringing the year to date amount to approximately
$4.8 billion."
Dennis W. Bakke, President and Chief Executive Officer, stated, "We just turned
19 years old and feel as vibrant as ever. During the third quarter, our young
company continued to expand rapidly its global businesses to serve the people of
the world. We are demonstrating that our robust, long term, stable earnings
growth is one outcome of our business model that puts a priority on serving
through a diverse collection of independent businesses around the world that
focus on electricity and other services."
Business development milestones in 2000 include the following:
- In September, AES entered the Bolivian telecom market with the purchase of
100% of Redibol, a Competitive Access Provider based in La Paz, for $2.5
million.
- In September, AES and EDF International S.A. announced they have entered
into an agreement to jointly acquire the 11.68% interest in Light Servicos
de Eletricidade S.A. ("Light") owned by two subsidiaries of Reliant Energy
for $430 million.
- In September, AES began construction on a $340 million electric power plant
and liquefied natural gas ("LNG") importing facility located in the
Dominican Republic.
- In August, AES completed the acquisition of a 59% stake in the 1,000 MW
hydroelectric facility of Hidroelectrica Alicura S.A. ("Alicura") in
Argentina from Southern Energy, Inc. ("SEI") and its partners.
- In August, AES and REI announced that they have entered into an agreement
whereby a subsidiary of AES will acquire Reliant Energy International's
interest in El Salvador Energy Holdings, S.A. ("ESEH"), which owns three
distribution companies in El Salvador.
- In August, subsidiaries of AES issued approximately $1 billion of
non-recourse project bonds to refinance outstanding debt at the Drax Power
Station, located in North Yorkshire, England.
- In August, a subsidiary of AES entered into an agreement whereby AES will
acquire the
<PAGE>
49% interest held by TransCanada PipeLines Limited in the Songo Songo
Gas-to-Electricity Project in Tanzania.
- 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.
- 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 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, 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 thirty four
facilities totaling over 48 gigawatts of capacity. AES's electricity
distribution network has over 920,000 km of conductor and associated rights of
way and sells over 126,000 gigawatt hours per year to over 17 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.
This news release may include forward-looking statements. Actual events and
results may differ materially from those projected. Factors that could affect
actual results are
<PAGE>
discussed in AES's filings with the Securities and Exchange Commission, and
readers are encouraged to read those filings to learn more about the risk
factors associated with AES's businesses.
* * * * *
For more general information visit our web site at www.aesc.com or contact
investor relations at [email protected]. The list aes-pr-announce is an
automated mailing list and can be found on the investing page of our web site.
Those who subscribe to this list will receive updates when AES issues a press
release.
<PAGE>
THE AES CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
FOR THE YEARS ENDED SEPTEMBER 30, 2000 & 1999
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------
QUARTER QUARTER
ENDED ENDED PERCENTAGE
9/30/00 9/30/99 CHANGE
-------------------------------------------------------------------------------------------
<S> <C> <C> <C>
($ in millions, except per share amounts)
REVENUES:
Sales and services $ 1,761 $ 847 108%
OPERATING COSTS
AND EXPENSES:
Cost of sales
and services 1,308 609 (115%)
Selling, general and
administrative expenses 21 13 (62%)
------- -------
TOTAL OPERATING COSTS AND EXPENSES 1,329 622 (114%)
------- -------
OPERATING INCOME 432 225 92%
OTHER INCOME AND
(EXPENSE):
Interest expense (365) (141) (159%)
Interest and other income 48 15 220%
Equity in earnings (loss) of
affiliates (before income tax) 103 (3) n/a
------- -------
INCOME BEFORE
INCOME TAXES
AND MINORITY
INTEREST 218 96 127%
Income tax provision 52 27 (93%)
Minority interest 32 11 (191%)
------- -------
NET INCOME $ 134 $ 58 131%
------- -------
------- -------
DILUTED EARNINGS PER SHARE: $ 0.29 $ 0.15 93%
------- -------
------- -------
Diluted weighted average
shares outstanding (in millions) 483 394
--- ---
--- ---
</TABLE>
<PAGE>
THE AES CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
FOR THE YEARS ENDED SEPTEMBER 30, 2000 & 1999
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------
9 MONTHS 9 MONTHS
ENDED ENDED PERCENTAGE
9/30/00 9/30/99 CHANGE
-------------------------------------------------------------------------------------------
<S> <C> <C> <C>
$ in millions, except per share amounts)
REVENUES:
Sales and services $ 4,775 $ 2,125 125%
OPERATING COSTS
AND EXPENSES:
Cost of sales
and services 3,568 1,439 (148%)
Selling, general and
administrative expenses 69 44 (57%)
------- -------
TOTAL OPERATING COSTS
AND EXPENSES 3,637 1,483 (145%)
------- -------
OPERATING INCOME 1,138 642 77%
OTHER INCOME AND
(EXPENSE):
Interest expense (947) (417) (127%)
Interest and other income 148 46 222%
Equity in earnings (loss) of
affiliates (before income tax) 320 (57) n/a
------- -------
INCOME BEFORE
INCOME TAXES
AND MINORITY
INTEREST 659 214 208%
Income tax provision 166 55 (202%)
Minority interest 66 43 (53%)
------- -------
INCOME BEFORE
EXTRAORDINARY ITEM 427 116 268%
Extraordinary item, net of tax -
Early extinguishment of debt (7) -- n/a
------- -------
NET INCOME $ 420 $ 116 262%
------- -------
------- -------
DILUTED EARNINGS PER SHARE:
Before extraordinary item 0.95 0.30 217%
Extraordinary item (0.02) -- n/a
------- -------
Total $ 0.93 $ 0.30 210%
------- -------
------- -------
Diluted weighted average
shares outstanding (in millions) 469 383
--- ---
--- ---
</TABLE>
<PAGE>
THE AES CORPORATION
UNAUDITED SUPPLEMENTAL DATA
FOR THE QUARTER ENDED SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
----------------------------1999----------------------------- -----------------2000---------------
1ST QTR. 2ND QTR. 3RD QTR. 4TH QTR. YEAR 1ST QTR. 2ND QTR. 3RD QTR.
-------- -------- -------- -------- ---- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
GEOGRAPHIC-% of Total
NORTH AMERICA
Revenues 27% 31% 45% 39% 37% 37% 40% 37%
EBCIT (1) 35% 35% 40% 32% 35% 28% 32% 34%
SOUTH/CENTRAL AMERICA
Revenues 38% 41% 33% 32% 35% 27% 31% 37%
EBCIT 17% 28% 36% 32% 29% 35% 46% 51%
EUROPE
Revenues 14% 9% 9% 17% 13% 25% 19% 18%
EBCIT 23% 9% 9% 23% 17% 28% 12% 8%
ASIA
Revenues 21% 19% 13% 12% 15% 11% 10% 8%
EBCIT 25% 28% 15% 13% 19% 9% 10% 7%
SEGMENTS-% of Total
GENERATION
Revenues 61% 64% 63% 56% 60% 62% 52% 51%
Operating Margin (2) 78% 80% 83% 76% 79% 83% 93% 76%
EBCIT 84% 78% 73% 79% 77% 70% 90% 65%
DISTRIBUTION
Revenues 39% 36% 37% 44% 40% 38% 48% 49%
Operating Margin 22% 20% 17% 24% 21% 17% 7% 24%
EBCIT 16% 22% 27% 21% 23% 30% 10% 35%
</TABLE>
FINANCIAL HIGHLIGHTS-million $, except Total Assets in billion $
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Revenues $ 638 $ 640 $ 847 $1,128 $3,253 $1,476 $1,538 $1,761
EBCIT $ 147 $ 171 $ 197 $ 245 $ 760 $ 343 $ 222 $ 311
Net Income Excluding
Extraordinary Items (3) $ 74 $ 84 $ 99 $ 120 $ 377 $ 181 $ 111 $ 134
Total Assets (billions) $ 10 $ 11 $ 12 $ 21 $ 21 $ 23 $ 29 $ 29
Deprec./Amort $ 60 $ 62 $ 72 $ 84 $ 278 $ 112 $ 132 $ 166
Parent EBITDA - LTM (4) $ 360 $ 381 $ 370 $ 403 $ 403 $ 387 $ 501 $ 593
</TABLE>
(1) EBCIT is net income excluding corporate interest, other corporate costs and
income taxes.
(2) Operating Margin is revenues reduced by cost of sales, depreciation and
amortization and other operating expenses.
(3) In 1999, Net Income Excluding Extraordinary Items also excludes foreign
currency transaction gains and losses.
(4) Parent EBITDA is cash flow earnings distributed to parent less parent
operating expenses for the last twelve months.
