Reported Earnings • Feb 29
Full year 2023 earnings released: US$0.017 loss per share (vs US$0.027 profit in FY 2022) Full year 2023 results: US$0.017 loss per share (down from US$0.027 profit in FY 2022). Revenue: US$2.74b (up 6.3% from FY 2022). Net loss: US$174.9m (down 163% from profit in FY 2022). Over the last 3 years on average, earnings per share has increased by 41% per year but the company’s share price has fallen by 13% per year, which means it is significantly lagging earnings. New Risk • Nov 11
New minor risk - Financial position The company has a high level of debt. Net debt to equity ratio: 244% This is considered a minor risk. Having a high level of debt increases the company's balance sheet risk. The company has a higher interest repayment burden, leading to the need to allocate a greater amount of its earnings towards servicing the debt, potentially limiting growth options or shareholder distributions. It can also increase the risk of bankruptcy if business conditions deteriorate enough that the company can no longer meet its debt obligations. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (5.6% average weekly change). Earnings have declined by 35% per year over the past 5 years. Minor Risks High level of debt (244% net debt to equity). Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. New Risk • Nov 09
New minor risk - Financial position The company has a high level of debt. Net debt to equity ratio: 244% This is considered a minor risk. Having a high level of debt increases the company's balance sheet risk. The company has a higher interest repayment burden, leading to the need to allocate a greater amount of its earnings towards servicing the debt, potentially limiting growth options or shareholder distributions. It can also increase the risk of bankruptcy if business conditions deteriorate enough that the company can no longer meet its debt obligations. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (5.6% average weekly change). Earnings have declined by 35% per year over the past 5 years. Minor Risks High level of debt (244% net debt to equity). Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Reported Earnings • Nov 08
Third quarter 2023 earnings released: EPS: US$0.006 (vs US$0.006 in 3Q 2022) Third quarter 2023 results: EPS: US$0.006 (in line with 3Q 2022). Revenue: US$752.0m (up 12% from 3Q 2022). Net income: US$64.9m (up 2.5% from 3Q 2022). Profit margin: 8.6% (in line with 3Q 2022). Over the last 3 years on average, earnings per share has increased by 40% per year but the company’s share price has fallen by 13% per year, which means it is significantly lagging earnings. New Risk • Aug 20
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Chilean stocks, typically moving 5.1% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (16% operating cash flow to total debt). Earnings have declined by 42% per year over the past 5 years. Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (5.1% average weekly change). New Risk • Aug 07
New major risk - Financial position The company's debt is not well covered by operating cash flow. Operating cash flow to total debt ratio: 16% This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (16% operating cash flow to total debt). Earnings have declined by 42% per year over the past 5 years. Minor Risk Paying a dividend despite having no free cash flows. Reported Earnings • Aug 05
Second quarter 2023 earnings released: US$0.021 loss per share (vs US$0.007 profit in 2Q 2022) Second quarter 2023 results: US$0.021 loss per share (down from US$0.007 profit in 2Q 2022). Revenue: US$682.4m (up 9.2% from 2Q 2022). Net loss: US$220.2m (down 411% from profit in 2Q 2022). Over the last 3 years on average, earnings per share has increased by 13% per year but the company’s share price has fallen by 5% per year, which means it is significantly lagging earnings. Announcement • Jun 07
AES Andes S.A. (SNSE:AESANDES) agreed to acquire Helio Atacama Tres S.p.A. from EDF EN Chile Holding Spa and Marubeni Corporation (TSE:8002) for approximately $110 million. AES Andes S.A. (SNSE:AESANDES) agreed to acquire Helio Atacama Tres S.p.A. from EDF EN Chile Holding Spa and Marubeni Corporation (TSE:8002) for approximately $110 million on June 6, 2023. Reported Earnings • May 10
First quarter 2023 earnings released First quarter 2023 results: Revenue: US$696.1m (up 18% from 1Q 2022). Net income: US$20.4m (down 56% from 1Q 2022). Profit margin: 2.9% (down from 7.8% in 1Q 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 37% per year but the company’s share price has increased by 4% per year, which means it is well ahead of earnings. Reported Earnings • Mar 04
Full year 2022 earnings released: EPS: US$0.027 (vs US$0.10 loss in FY 2021) Full year 2022 results: EPS: US$0.027 (up from US$0.10 loss in FY 2021). Revenue: US$2.58b (down 6.9% from FY 2021). Net income: US$276.7m (up US$1.37b from FY 2021). Profit margin: 11% (up from net loss in FY 2021). The move to profitability was driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 45% per year but the company’s share price has only fallen by 5% per year, which means it has not declined as severely as earnings. Board Change • Nov 16
Less than half of directors are independent There is 1 new director who has joined the board in the last 3 years. The new board member was not an independent director. The company's board is composed of: 1 new director. 11 experienced directors. No highly experienced directors. 2 independent directors (5 non-independent directors). Independent Director Daniel Mauricio Fernandez Koprich was the last independent director to join the board, commencing their role in 2019. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Reported Earnings • Nov 06
Third quarter 2022 earnings released: EPS: US$0.006 (vs US$0.012 in 3Q 2021) Third quarter 2022 results: EPS: US$0.006 (down from US$0.012 in 3Q 2021). Revenue: US$669.3m (down 2.0% from 3Q 2021). Net income: US$63.3m (down 48% from 3Q 2021). Profit margin: 9.5% (down from 18% in 3Q 2021). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 76 percentage points per year, which is a significant difference in performance. Reported Earnings • Aug 07
Second quarter 2022 earnings released: EPS: US$0.007 (vs US$0.043 loss in 2Q 2021) Second quarter 2022 results: EPS: US$0.007 (up from US$0.043 loss in 2Q 2021). Revenue: US$624.9m (down 20% from 2Q 2021). Net income: US$70.9m (up US$513.6m from 2Q 2021). Profit margin: 11% (up from net loss in 2Q 2021). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 86 percentage points per year, which is a significant difference in performance. Buying Opportunity • Jun 14
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 7.5%. The fair value is estimated to be CL$157, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 4.4% over the last 3 years. Meanwhile, the company became loss making. Upcoming Dividend • May 30
Upcoming dividend of US$0.013 per share Eligible shareholders must have bought the stock before 06 June 2022. Payment date: 10 June 2022. The company is not currently making a profit and is not cash flow positive. Trailing yield: 2.8%. Lower than top quartile of Chilean dividend payers (12%). Lower than average of industry peers (23%). Reported Earnings • May 06
First quarter 2022 earnings: Revenues exceed analysts expectations while EPS lags behind First quarter 2022 results: EPS: US$0.004 (down from US$0.017 in 1Q 2021). Revenue: US$592.0m (down 17% from 1Q 2021). Net income: US$46.1m (down 74% from 1Q 2021). Profit margin: 7.8% (down from 25% in 1Q 2021). Revenue exceeded analyst estimates by 3.1%. Earnings per share (EPS) also surpassed analyst estimates. Over the next year, revenue is expected to shrink by 12% compared to a 33% growth forecast for the industry in Chile. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 98 percentage points per year, which is a significant difference in performance. Board Change • Apr 27
Less than half of directors are independent There is 1 new director who has joined the board in the last 3 years. The new board member was not an independent director. The company's board is composed of: 1 new director. 11 experienced directors. No highly experienced directors. 2 independent directors (5 non-independent directors). Independent Director Daniel Mauricio Fernandez Koprich was the last independent director to join the board, commencing their role in 2019. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Reported Earnings • Mar 02
Full year 2021 earnings: EPS and revenues exceed analyst expectations Full year 2021 results: US$0.10 loss per share (down from US$0.032 loss in FY 2020). Revenue: US$2.77b (up 11% from FY 2020). Net loss: US$1.09b (loss widened 302% from FY 2020). Revenue exceeded analyst estimates by 3.1%. Earnings per share (EPS) also surpassed analyst estimates by 950%. Over the next year, revenue is expected to shrink by 19% compared to a 3.2% growth forecast for the industry in Chile. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 95 percentage points per year, which is a significant difference in performance. Announcement • Jan 26
AES Andes S.A.(SNSE:AESANDES) dropped from FTSE All-World Index (USD) AES Andes S.A.(SNSE:AESANDES) dropped from FTSE All-World Index (USD) Announcement • Jan 13
AES Andes S.A.(SNSE:AESANDES) dropped from S&P Global BMI Index AES Andes S.A.(SNSE:AESANDES) dropped from S&P Global BMI Index Announcement • Dec 07
Inversiones Cachagua Limitada made an offer to acquire remaining stake in AES Andes S.A. (SNSE:AESANDES) for CLP 460 billion. Inversiones Cachagua Limitada made an offer to acquire remaining stake in AES Andes S.A. (SNSE:AESANDES) for CLP 460 billion on December 6, 2021. As per terms, Inversiones Cachagua Limitada shall acquire 3,426,432,504 shares at CLP 135.14 per share. The consideration will be funded through a combination of non-recourse debt and liquidity available. The tender offer period begins from December 6, 2021 and expiration is expected to be on or about January 5, 2022. The tender offer is subject to extension and certain conditions. Major Estimate Revision • Dec 04
Consensus forecasts updated The consensus outlook for 2021 has been updated. 2021 expected loss increased from -US$0.0085 to -US$0.01 per share. Revenue forecast unchanged at US$2.69b. Renewable Energy industry in Chile expected to see average net income growth of 22% next year. Consensus price target broadly unchanged at CL$159. Share price fell 7.1% to CL$91.47 over the past week. Reported Earnings • Nov 06
Third quarter 2021 earnings released: EPS US$0.012 (vs US$0.067 loss in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: US$682.7m (up 1.2% from 3Q 2020). Net income: US$122.0m (up US$686.5m from 3Q 2020). Profit margin: 18% (up from net loss in 3Q 2020). The move to profitability was primarily driven by lower expenses. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 73 percentage points per year, which is a significant difference in performance. Reported Earnings • Aug 06
Second quarter 2021 earnings released: US$0.043 loss per share (vs US$0.007 profit in 2Q 2020) The company reported a mediocre second quarter result with weaker earnings and weaker control over costs, although revenues improved. Second quarter 2021 results: Revenue: US$776.9m (up 36% from 2Q 2020). Net loss: US$442.7m (down US$504.4m from profit in 2Q 2020). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 86 percentage points per year, which is a significant difference in performance. Analyst Estimate Surprise Post Earnings • Feb 28
Earnings beat expectations, revenue disappoints Revenue missed analyst estimates by 0.03%. Earnings per share (EPS) exceeded analyst estimates by 11%. Over the next year, revenue is forecast to grow 3.8%, compared to a 35% growth forecast for the Renewable Energy industry in Chile. Reported Earnings • Feb 28
Full year 2020 earnings released: US$0.032 loss per share (vs US$0.014 profit in FY 2019) The company reported a soft full year result with weaker earnings and weaker control over costs, although revenues improved. Full year 2020 results: Revenue: US$2.51b (up 4.0% from FY 2019). Net loss: US$271.4m (down 334% from profit in FY 2019). Over the last 3 years on average, earnings per share has fallen by 73% per year but the company’s share price has only fallen by 12% per year, which means it has not declined as severely as earnings. Announcement • Feb 25
WEG Capital signed a contract to acquire remaining 50.01% stake in Anexo Guacolda Energía S.A. from AES Gener S.A. (SNSE:AESGENER). WEG Capital signed a contract to acquire remaining 50.01% stake in Anexo Guacolda Energía S.A. from AES Gener S.A. (SNSE:AESGENER) on February 23, 2021. Post completion, WEG Capital will hold 100% stake in Guacolda Energía. The transaction is subject to the approval of Chile’s antitrust authority (FNE). The proceeds of the sale will be used to fund the Company’s renewable growth plans. Announcement • Feb 09
AES Gener S.A. announced that it has received $306 million in funding from Inversiones Cachagua Limitada On February 8, 2021, AES Gener S.A. (SNSE:AESGENER) closed the transaction. The company issued 1,976,000 shares at a price of $154.85829 for $306,000,000 in the transaction. Is New 90 Day High Low • Nov 24
New 90-day high: CL$130 The company is up 5.0% from its price of CL$124 on 26 August 2020. The Chilean market is flat over the last 90 days, indicating the company outperformed over that time. It also outperformed the Renewable Energy industry, which is down 8.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CL$105 per share. Analyst Estimate Surprise Post Earnings • Nov 12
Revenue beats expectations, earnings disappoint Revenue exceeded analyst estimates by 11%. Earnings per share (EPS) missed analyst estimates by 72%. Over the next year, revenue is forecast to grow 6.4%, compared to a 42% growth forecast for the Renewable Energy industry in Chile. Reported Earnings • Nov 12
Third quarter 2020 earnings released: US$0.067 loss per share The company reported a soft third quarter result with weaker earnings and control over expenses, although revenues were improved. Third quarter 2020 results: Revenue: US$674.3m (up 7.6% from 3Q 2019). Net loss: US$564.5m (down US$661.6m from profit in 3Q 2019). Over the last 3 years on average, earnings per share has fallen by 53% per year but the company’s share price has only fallen by 16% per year, which means it has not declined as severely as earnings. Is New 90 Day High Low • Oct 30
New 90-day low: CL$115 The company is down 11% from its price of CL$130 on 31 July 2020. The Chilean market is down 9.0% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Renewable Energy industry, which is down 14% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CL$125 per share. Is New 90 Day High Low • Oct 09
New 90-day low: CL$117 The company is down 2.0% from its price of CL$120 on 10 July 2020. The Chilean market is down 11% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Renewable Energy industry, which is down 10.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CL$128 per share. Announcement • Oct 03
AES Gener S.A. announced that it expects to receive $500 million in funding from Inversiones Cachagua Limitada and other investors AES Gener S.A. (SNSE:AESGENER) announced a private placement of common shares for gross proceeds of $500 million on February 28, 2020. The transaction will include participation from The AES Corporation (NYSE:AES) through existing investor Inversiones Cachagua Limitada for $335 million and other investors. Post to the transaction, Inversiones Cachagua Limitada will continue to hold 66.7% stake in the company. Announcement • Sep 18
Compañía Minera Teck Carmen de Andacollo S.A. and AES Gener S.A Enter into Long-Term Power Purchase Agreement Teck Resources Limited and The AES Corporation announced 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. The Carmen de Andacollo renewable power arrangement is in effect as of September 1, 2020 and will run through to the end of 2031.