The AES Corporation (AES) saw its loss widen to $949 million, or $1.44 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $85 million, or $0.13 a share. On the other hand, adjusted net income from continuing operations for the quarter stood at $224 million, or $0.35 a share compared with $340 million or $0.36 a share, a year ago. Revenue during the quarter grew 10.10 percent to $3,544 million from $3,219 million in the previous year period. Gross margin for the quarter contracted 359 basis points over the previous year period to 18.68 percent. Operating margin for the quarter stood at negative 1.69 percent as compared to a positive 11.77 percent for the previous year period.
Operating loss for the quarter was $60 million, compared with an operating income of $379 million in the previous year period.
"We ended 2016 on a high note, achieving our guidance for all metrics, with cash flow coming in at the high end, and Adjusted EPS well within, our ranges. We also continued to make strides on our strategic objectives by completing 3 GW of construction projects, selling non-core assets and making further cost cuts and revenue enhancements," said Andres Gluski, AES president and chief executive officer. "The recent purchase of sPower increases our long-term contracted, U.S. Dollar-denominated, renewable portfolio, which was one of our stated objectives for 2016."
For financial year 2017, the company forecasts diluted earnings per share to be in the range of $1 to $1.10 on adjusted basis.
Operating cash flow improves significantly
The AES Corporation has generated cash of $2,884 million from operating activities during the year, up 35.15 percent or $750 million, when compared with the last year. The company has spent $2,108 million cash to meet investing activities during the year as against cash outgo of $2,366 million in the last year.
The company has spent $747 million cash to carry out financing activities during the year as against cash inflow of $28 million in the last year period.
Cash and cash equivalents stood at $1,305 million as on Dec. 31, 2016, up 3.82 percent or $48 million from $1,257 million on Dec. 31, 2015.
Working capital turns positive
Working capital of The AES Corporation has turned positive to $1,139 million on Dec. 31, 2016 from negative $84 million on Dec. 31, 2015. Current ratio was at 1.22 as on Dec. 31, 2016, up from 0.99 on Dec. 31, 2015.
Cash conversion cycle (CCC) has decreased to 12 days for the quarter from 16 days for the last year period. Days sales outstanding went down to 28 days for the quarter compared with 33 days for the same period last year.
Days inventory outstanding has decreased to 10 days for the quarter compared with 12 days for the previous year period. At the same time, days payable outstanding went down to 26 days for the quarter from 29 for the same period last year.
Debt moves up marginally
The AES Corporation has witnessed an increase in total debt over the last one year. It stood at $20,463 million as on Dec. 31, 2016, up 1.90 percent or $382 million from $20,081 million on Dec. 31, 2015. Total debt was 56.65 percent of total assets as on Dec. 31, 2016, compared with 54.49 percent on Dec. 31, 2015. Debt to equity ratio was at 3.59 as on Dec. 31, 2016, up from 3.25 as on Dec. 31, 2015.
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