The AES Corporation (NYSE:AES) today provided an update on its operations in Puerto Rico and the U.S. Virgin Islands, following Hurricanes Irma and Maria.
Although a more detailed assessment of the damage to its facilities is still ongoing, the Company sustained modest damage to its 24 MW Illumina solar plant and minor damage to its 524 MW AES Puerto Rico coal-fired plant, both located in Puerto Rico. One of the two units at AES Puerto Rico is available to generate electricity, while the inspection of the second unit is ongoing. The Company’s 5 MW USVI Solar I solar plant in the U.S. Virgin Islands has been materially damaged.
“Our number one priority before, during and after the recent hurricanes was the safety of our people and their families. Fortunately, all AES people and their families are safe and we have now turned our attention to assessing our facilities and assisting the impacted communities,” said Andrés Gluski, AES President and Chief Executive Officer. “We expect to have the second unit at AES Puerto Rico be available to generate much-needed electricity in the next couple of weeks. We are working closely with the communities to assist in providing humanitarian relief, as well.”
Following the hurricanes, AES has provided critical assistance to its employees and local communities in Puerto Rico. Specifically, the Company has delivered 10,200 gallons of bottled water, cleared storm debris from roads and schools and provided critical diesel fuel for generators to the Salvation Army and Guayama Hospital. AES is involved in ongoing discussions to provide additional supplies and manpower to aid in further recovery on the island.
The impact on the Company’s 2017 Adjusted EPS is expected to be $0.03 to $0.05, which is related to the damages to the three plants, business interruption and deductibles under the Company’s captive insurance policy. Accordingly, the Company is reaffirming its 2017 guidance for all metrics, but now expects Adjusted EPS to be in the lower half of the $1.00 to $1.10 range. The Company’s 2017 guidance for Consolidated Free Cash Flow is $1,400 to $2,000 million and Operating Cash Flow is $2,000 million to $2,800 million.
