|
AES Expands in the Philippines By: Zacks Equity Research October 05, 2010 | Comments: 0 In an effort to meet the increasing demand for electricity in the Philippines, The AES Corporation (AES - Analyst Report) plans to expand its Masinloc power generation facility. The company estimates a capital investment of approximately $800 million, obtained from a combination of non-recourse financing and equity. The company plans to double the size of its 660 megawatt Masinloc I coal-fired power plant. The company noted that the growing power sector in the Philippines requires new low-cost electric generation capacity. Compounding the need for energy, the national economy in that country will likely grow at an average of over 5% year over year through 2015, with demand for electricity expected to grow 5% for the same period. Recently, the Philippines received an investment commitment worth $2.4 billion from foreign companies, providing a boost to economic growth. AES, following its acquisition of the Masinloc I facility in the Central Luzon region in 2008, became the largest foreign investor in the country, enabling it to capitalize on the growing potential of a developing economy. The company increased the plant’s capacity to 630 megawatts from 450 megawatts, expanded availability to 74% from 50% and spurred net production by 62% within two years. In this context, the company is deploying substantial funds for capacity expansion in the Latin American and Asian markets to boost growth and profitability. The company reported a strong second quarter, largely driven by a combination of better operations at the generation businesses in Asia, increased volumes and prices in Latin America and favorable foreign currency exchange rates. However, lower North American margins and a higher effective tax rate due to the gain of $115 million on the sale of the company's indirect investment in CEMIG, a Brazilian utility, were partial offsets. |
|
| aus der Diskussion: | AES Corporation - US-Utility |
| Autor (Datum des Eintrages): | R-BgO (06.10.10 11:45:05) |
| Beitrag: | 10 von 23 (ID:40272676) |
| Alle Angaben ohne Gewähr © wallstreetONLINE | |