US Energy Company AES Eyes Sale Of Coal-Fired Power Plant In Vietnam: Report
Portfolio Pulse from Lekha Gupta
AES Corp (NYSE:AES) is in talks to sell its majority stake in a large coal-fired power plant in Vietnam, aligning with its strategy to exit coal assets by 2025. The potential buyer is Sev.en Global Investments, owned by billionaire Pavel Tykac. Posco International, holding a 30% stake, may also sell. AES recently sold parts of its Dominican Republic and Panama businesses for $190 million. In Q3 FY23, AES's adjusted EPS was $0.60, surpassing estimates, but revenue fell short at $3.43 billion.
November 17, 2023 | 3:49 pm
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POSITIVE IMPACT
AES Corp is looking to sell its majority stake in a Vietnamese coal-fired power plant, in line with its coal divestment strategy. The company beat Q3 EPS estimates but missed on revenue.
The news of AES divesting from coal assets is in line with its sustainability goals and may be viewed positively by investors who favor environmentally responsible actions. The EPS beat suggests operational efficiency, which could bolster investor confidence. However, the revenue miss indicates potential challenges in top-line growth, which investors will monitor closely. Overall, the strategic divestment news is likely to have a more significant impact than the mixed earnings report.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90