netrashetty
Netra Shetty
AES Corporation (NYSE: AES) is a Fortune 500 company that generates and distributes electrical power. It was founded on January 28, 1981, as Applied Energy Services[3] by Roger Sant from the US Federal Energy Administration and Dennis Bakke from the Office of Management and Budget. It is headquartered in Arlington, Virginia. AES Corporation is one of the world's leading power companies, generating and distributing electric power in 31 countries and employing 27,000 people worldwide.
In 2008, AES Corporation's total revenue was 16.1 Billion, of which $9.11B came from the company's Power Generation division,and $6.99B from Utilities.[4]
In April 2010, AES Wind Generation, a wholly-owned subsidiary of AES, acquired UK-based wind developer Your Energy (YEL) and has also signed an agreement to buy a 51% stake in a wind portfolio from 3E, a Polish wind developer. This move will add more than 700MW to AES Wind Generation’s European pipeline
AES Trust (NYSE: AES) is an electric utility; by megawatts generated, AES is the ninth-largest electricity generator in Brazil and the second-largest in Chile.[1] The company also distributes electricity to about 80% of Brazil's population through its utilities operations.[2] Though AES is based in the U.S., its Latin American businesses consistently account for half the company's revenue.
Business Overview
Business & Financial Metrics[3]
In 2009, AES generated a net income of $658 million on revenues of $14.12 billion. This represents a 46.7% decrease in net income and a 8.1% decrease in total revenues from 2008, when the company earned $1.23 billion on $15.36 billion in revenue.
Business Segments[4]
Generation (49.3% of total revenue)
The Generation segment is responsible for running electricity generation plants powered by either coal, natural gas, water, biomass, or wind, and selling electricity to wholesale customers in 26 countries. In Latin America, the company's main source of revenue, AES generates 21% of the total electrical capacity in the state of São Paulo, Brazil making it the ninth-largest generator in Brazil.[5] AES also produces 12% of Argentina's total electricity and is the second-largest generator of power in Chile.[6] AES also owns 17 power plants in the northeastern and western U.S.[7]
Utilities (50.7% of total revenue)
Contents
1 Business Overview
1.1 Business & Financial Metrics[3]
1.2 Business Segments[4]
1.2.1 Generation (49.3% of total revenue)
1.2.2 Utilities (50.7% of total revenue)
1.3 Other
2 Key Trends and Forces
2.1 Nationalization in Latin America threatens AES' operations
3 Competition
4 References
The Utilities segment is responsible for transporting electricity directly to over 11 million consumers.[8] The company's Utilities operations range in structure from simple distribution systems to fully integrated utilities that generate, transmit, and distribute power. AES is part owner of Brazil's largest electricity distribution company in terms of revenue and electricity distributed, AES Electropaulo.[9] In El Salvador, AES provides electricity to over 80% of the country's population.[10] In North America, AES owns IPL, a utilities company that supplies energy to roughly 465,000 customers in Indianapolis.[11] The Utilities businesses do not face as much competition as AES' Generation segment because of the government regulation of utilities that prevents competitors from freely entering the market.[12]
Other
The Other segment consists mostly of AES' alternative energy products and services. AES's alternative energy business includes wind-powered electricity generation stations and products designed to reduce the output of greenhouse gases from fossil fuel generators.[13]
[4]
Key Trends and Forces
Nationalization in Latin America threatens AES' operations
On January 8, 2007, Hugo Chavez, president of Venezuela, announced a plan to nationalize Venezuela's electrical energy industry.[14] As part of Chavez's plan, AES was forced to sell its Venezuelan electric utilities company EDC to the Venezuelan government for $739 million.[15] The transaction resulted in a $680 million loss on the value of AES's assets in Venezuela.[16] Venezuela is not the only Latin American country to move toward nationalization; Bolivian president Evo Morales nationalized the country's oil and natural gas industries, even going so far as to send in troops to enforce the government's policies.[17]
Competition
North America
Constellation Energy Group (CEG) is a U.S. company that offers electric and natural gas utilities services, though this is just one part of its entire business model. Its energy delivery services compete with AES' Utilities segment.[18]
Dominion Resources (D) generates and distributes electricity and natural gas throughout North America. Dominion competes with both of AES' two main segments.[19]
Duke Energy Corporation (DUK) distributes natural gas to customers in North America and electricity to both North American and international customers.[20]
SEMPRA ENERGY (SRE) runs electric and natural gas utilities in North America, competing with AES' Utilities division.[21]
Latin and South America
Empresa Nacional de Electricidad S.A. (EOC) runs electricity generation plants in Chile, Argentina, Colombia, Peru, and Brazil.[22]
Comp En De Mn Cemig ADS (CIG) generates and distributes electricity throughout Latin America
In 2008, AES Corporation's total revenue was 16.1 Billion, of which $9.11B came from the company's Power Generation division,and $6.99B from Utilities.[4]
In April 2010, AES Wind Generation, a wholly-owned subsidiary of AES, acquired UK-based wind developer Your Energy (YEL) and has also signed an agreement to buy a 51% stake in a wind portfolio from 3E, a Polish wind developer. This move will add more than 700MW to AES Wind Generation’s European pipeline
AES Trust (NYSE: AES) is an electric utility; by megawatts generated, AES is the ninth-largest electricity generator in Brazil and the second-largest in Chile.[1] The company also distributes electricity to about 80% of Brazil's population through its utilities operations.[2] Though AES is based in the U.S., its Latin American businesses consistently account for half the company's revenue.
Business Overview
Business & Financial Metrics[3]
In 2009, AES generated a net income of $658 million on revenues of $14.12 billion. This represents a 46.7% decrease in net income and a 8.1% decrease in total revenues from 2008, when the company earned $1.23 billion on $15.36 billion in revenue.
Business Segments[4]
Generation (49.3% of total revenue)
The Generation segment is responsible for running electricity generation plants powered by either coal, natural gas, water, biomass, or wind, and selling electricity to wholesale customers in 26 countries. In Latin America, the company's main source of revenue, AES generates 21% of the total electrical capacity in the state of São Paulo, Brazil making it the ninth-largest generator in Brazil.[5] AES also produces 12% of Argentina's total electricity and is the second-largest generator of power in Chile.[6] AES also owns 17 power plants in the northeastern and western U.S.[7]
Utilities (50.7% of total revenue)
Contents
1 Business Overview
1.1 Business & Financial Metrics[3]
1.2 Business Segments[4]
1.2.1 Generation (49.3% of total revenue)
1.2.2 Utilities (50.7% of total revenue)
1.3 Other
2 Key Trends and Forces
2.1 Nationalization in Latin America threatens AES' operations
3 Competition
4 References
The Utilities segment is responsible for transporting electricity directly to over 11 million consumers.[8] The company's Utilities operations range in structure from simple distribution systems to fully integrated utilities that generate, transmit, and distribute power. AES is part owner of Brazil's largest electricity distribution company in terms of revenue and electricity distributed, AES Electropaulo.[9] In El Salvador, AES provides electricity to over 80% of the country's population.[10] In North America, AES owns IPL, a utilities company that supplies energy to roughly 465,000 customers in Indianapolis.[11] The Utilities businesses do not face as much competition as AES' Generation segment because of the government regulation of utilities that prevents competitors from freely entering the market.[12]
Other
The Other segment consists mostly of AES' alternative energy products and services. AES's alternative energy business includes wind-powered electricity generation stations and products designed to reduce the output of greenhouse gases from fossil fuel generators.[13]
[4]
Key Trends and Forces
Nationalization in Latin America threatens AES' operations
On January 8, 2007, Hugo Chavez, president of Venezuela, announced a plan to nationalize Venezuela's electrical energy industry.[14] As part of Chavez's plan, AES was forced to sell its Venezuelan electric utilities company EDC to the Venezuelan government for $739 million.[15] The transaction resulted in a $680 million loss on the value of AES's assets in Venezuela.[16] Venezuela is not the only Latin American country to move toward nationalization; Bolivian president Evo Morales nationalized the country's oil and natural gas industries, even going so far as to send in troops to enforce the government's policies.[17]
Competition
North America
Constellation Energy Group (CEG) is a U.S. company that offers electric and natural gas utilities services, though this is just one part of its entire business model. Its energy delivery services compete with AES' Utilities segment.[18]
Dominion Resources (D) generates and distributes electricity and natural gas throughout North America. Dominion competes with both of AES' two main segments.[19]
Duke Energy Corporation (DUK) distributes natural gas to customers in North America and electricity to both North American and international customers.[20]
SEMPRA ENERGY (SRE) runs electric and natural gas utilities in North America, competing with AES' Utilities division.[21]
Latin and South America
Empresa Nacional de Electricidad S.A. (EOC) runs electricity generation plants in Chile, Argentina, Colombia, Peru, and Brazil.[22]
Comp En De Mn Cemig ADS (CIG) generates and distributes electricity throughout Latin America
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