The AES Corporation (NYSE:AES) Q3 2019 Earnings Conference Call - Final Transcript
Nov 06, 2019 • 09:00 am ET
Good morning, and welcome to the AES Corporation Third Quarter 2019 Financial Review Conference Call. [Operator Instructions]
I would now like to turn the conference over to Ahmed Pasha, Vice President of Investor Relations. Please go ahead.
Thank you, Andrea. Good morning, and welcome to our fourth quarter -- the third quarter 2019 financial review call. Our press release, presentation and related financial information are available on our website at aes.com.
Today, we will be making forward-looking statements during the call. There are many factors that may cause future results to differ materially from these statements. Please refer to our SEC filings for a discussion of these factors.
Joining me this morning are Andres Gluski, our President and Chief Executive Officer; Gustavo Pimenta, our Chief Financial Officer; and other senior members of our management team.
With that, I will turn the call over to Andres. Andres?
Good morning, everyone, and thank you for joining our third quarter 2019 financial review call. Today, I will walk through the highlights of the quarter and how we are delivering on our commitments and successfully executing on our strategy. Gustavo will then follow with a detailed description of our third quarter and year-to-date financial results.
Our adjusted earnings per share for the third quarter was $0.48, which is 37% higher than our results for the same quarter last year. On our prior call, we mentioned that much of our growth would be in the second half of the year and our strong third quarter results are in line with our expectations. We are on track to deliver on our 2019 adjusted EPS guidance with the midpoint of $1.34 and our parent free cash flow target with the midpoint of $725 million, and we are confident in our ability to deliver 7% to 9% average annual growth through 2022.
I am pleased to report that we're making good progress on the strategy we laid out on our previous calls. Allow me to walk you through step-by-step. First, turning to Slide 4. Let us talk about our progress towards becoming investment-grade. As you may have seen in this morning's press release, we received an investment-grade rating for the first time in the AES' history. I'm very pleased to have achieved this milestone, reflects a multi-year transformation strategy to make our business simpler and more predictable. We not only significantly strengthened our balance sheet, but we have also materially reduced our exposure to risks such as hydrology, foreign currencies and commodities.
Moving to Slide 5, and our growth in renewables. This quarter we signed over 900 megawatts of new renewable power purchase agreements, bringing our year-to-date total to 1.9 gigawatts. We are fully confident that we will consistently deliver 2 gigawatts to 3 gigawatts of new renewable capacity every year. As of today, our backlog of projects is 6 gigawatts, half of which are under construction and half have signed PPAs. As anticipated, about half of these projects are in the U.S. and half are international. We see