In the Q2, The Aes Corporation's corporate clients experienced a drop by -75.19 % in their costs of revenue, compared to a year ago, sequentially costs of revenue were trimmed by -78.02 %. During the corresponding time, The Aes Corporation recorded a revenue increase by 19.86 % year on year, sequentially revenue grew by 7.61 %. While revenue at the The Aes Corporation's corporate clients recorded rose by 8.94 % year on year, sequentially revenue grew by 1.41 %.
Customers of The Aes Corporation saw their costs of revenue drop by -75.19 % in Q2 compare to a year ago, sequentially costs of revenue were trimmed by -78.02 %, for the same period The Aes Corporation recorded revenue increase by 19.86 % year on year, sequentially revenue grew by 7.61 %.
The Aes's Comment on Sales, Marketing and Customers
Electricity Sales Contracts
Our generation businesses sell electricity under medium- or long-term contracts
(“contract sales”) or under short-term agreements in competitive
markets (“short-term sales”).
Contract Sales. Most of our generation fleet sells electricity under contracts.
Our medium-term contract sales have a term of 2 to 5 years, while our long-term
contracts have a term of more than 5 years. Across our portfolio, the average
remaining contract term is 7 years.
In contract sales, our generation businesses recover variable costs including
fuel and variable operations and maintenance (“O&M”) costs,
either through direct or indexation-based contractual pass-throughs or tolling
arrangements. When the contract does not include a fuel pass-through, we typically
hedge fuel costs or enter into fuel supply agreements for a similar contract
period. These contracts are intended to reduce exposure to the volatility of
fuel prices and electricity prices by linking the business’s revenues
and costs. These contracts also help us to fund a significant portion of the
total capital cost of the project through long-term non-recourse project-level
financing.
Utilities
AES’ 9 utility businesses distribute power to more than 11 million people
in four countries. These businesses also include generation capacity totaling
7,870 MW (7,458 proportional MW). These businesses have a variety of structures,
ranging from integrated utility to pure transmission and distribution businesses.
The Aes’s Comment on Sales, Marketing and Customers
Electricity Sales Contracts
Our generation businesses sell electricity under medium- or long-term contracts
(“contract sales”) or under short-term agreements in competitive
markets (“short-term sales”).
Contract Sales. Most of our generation fleet sells electricity under contracts.
Our medium-term contract sales have a term of 2 to 5 years, while our long-term
contracts have a term of more than 5 years. Across our portfolio, the average
remaining contract term is 7 years.
In contract sales, our generation businesses recover variable costs including
fuel and variable operations and maintenance (“O&M”) costs,
either through direct or indexation-based contractual pass-throughs or tolling
arrangements. When the contract does not include a fuel pass-through, we typically
hedge fuel costs or enter into fuel supply agreements for a similar contract
period. These contracts are intended to reduce exposure to the volatility of
fuel prices and electricity prices by linking the business’s revenues
and costs. These contracts also help us to fund a significant portion of the
total capital cost of the project through long-term non-recourse project-level
financing.
Utilities
AES’ 9 utility businesses distribute power to more than 11 million people
in four countries. These businesses also include generation capacity totaling
7,870 MW (7,458 proportional MW). These businesses have a variety of structures,
ranging from integrated utility to pure transmission and distribution businesses.
Sources:
The Aes Corporation’s official press releases and regulatory filings; CSIMarket.com’s market research; and the financial filings and press releases of other companies cited in this report.
Updated on:
Focus of this report: The Aes Corporation’s corporate clients.
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