AES Andes reports solid financial performance in Chile, Colombia and Argentina

- The Company makes significant progress in the execution of its strategy to become the leading provider of renewable energy solutions in South America.

Santiago, August 4, 2021.- AES Andes reported strong financial performance and significant progress in its Greentegra transformational strategy during the second quarter of 2021.

The Company posted an EBITDA of US $ 349 million in the second quarter of 2021, 68% higher than the same period of the previous year. The Company's better financial results are explained by the normalization of operations in Colombia after completing works to extend the useful life of the Chivor hydroelectric reservoir, higher sales to free customers and tariff adjustment in Argentina, and the early termination of the contracts between subsidiaries of BHP and Angamos in Chile.

Regarding the first half of 2021, the company reported an EBITDA of US $ 688 million, 86% higher than that registered in the same period during 2020.

The CEO of AES Andes, Ricardo Falú, highlighted that “the results of the quarter show the resilience of the company and highlight the value of the strategic discipline of the entire AES Andes team in the execution of Greentegra. Our transformational strategy seeks to reduce the carbon intensity of our portfolio, make the supply of our customers more sustainable and strengthen the investment grade of the company.”

 “Our transformation has been accelerated in a very significant way, and with the achievements accomplished to date with our decarbonization and renewable growth plan, 66% of EBITDA and 72% of the company's installed capacity will come from renewable energy by 2025,” added Falú.

The CEO made a special reference to AES Andes’ business partners "I want to thank each of our clients for trusting in AES Andes to co-create renewable and intelligent energy solutions that contribute to the competitiveness and sustainability of their operations but also to comply with the purpose and mandate of our society to accelerate the future of energy together and combat climate change. Our accelerated and responsible transformation is a reflection of that trust, shared purpose and joint effort.”

Relevant facts to date

Portfolio decarbonization

Accelerating the execution of its Greentegra transformational strategy and reaffirming its commitment to decarbonizing Chile's energy matrix, AES Andes accelerated the retirement of four coal-fired units, which together total 1,097 MW.

The Ventanas 3 and 4 units and Angamos 1 and 2, as of January 1, 2025, will be available for retirement as soon as the security, sufficiency and competitiveness of the system allow it in an agreement signed with the Government of Chile.

 With this announcement, by 2025, the company will have closed, sold or delinked from contractual obligations 72% of its coal-fired generation capacity. It will continue with the necessary efforts to make the energy supply of its customers more sustainable.

 In July, the company closed the sale of its stake in Guacolda Energía (764 MW coal-fired complex) to Capital Advisors after receiving the approval of the National Economic Prosecutor's Office (FNE). Through El Águila Energy II SpA, Capital Advisors now controls 100% of the plant located in Huasco, Chile.

Green Growth

The company continues to advance in the construction and development of its renewable energy and battery projects. By 2025, AES Andes will increase its renewable capacity by 175%.

Alto Maipo - Chile's largest renewable project - reaches 98% progress and is advancing according to schedule to start generation at its two plants, Alfalfal II and Las Lajas before the end of the year.

In addition, the Company reports solid progress in the construction of 604 MW of wind, solar and battery projects. In Colombia, the 61 MW San Fernando solar plant will come into operation next month to supply Ecopetrol's operations. In Chile, the Los Olmos and Mesamávida wind farms, for a total of 178 MW, will complete their construction at the end of 2021 and Campo Lindo of 73 MW continues its progress to complete its construction during the second half of 2022. In northern Chile, Andes Solar IIb continues to advance according to schedule. It is the solar + storage plant in Latin America.

Capital Structure and Financing

After successfully completing the capital increase of US $ 306 million, AES Andes incorporated Global Infrastructure Partners (GIP) as a strategic partner in its wind, solar and battery assets currently in operation or under construction in Chile.

Through the payment of US $ 441 million, GIP will have 49% and AES Andes will have 51% of Chile Renovables SpA, owner of Parque Eólico Los Cururos SpA, which is currently in operation. As they reach full COD and the other conditions agreed between the parties are met, Chile Renovables SpA will acquire the companies that own the Andes Solar IIa, Andes Solar IIb, Los Olmos, Mesamávida and Campo Lindo projects, for a total of 733MW.

All in all, by 2025, the company will have strengthened its investment-grade ratings by achieving sustained leverage below 3.5 times net debt over EBITDA.