The AES Corporation (NYSE:AES) today announced that it has entered into a definitive agreement with Petroleos de Venezuela S.A. (PDVSA) for the purchase of AES's 82.14% stake in C.A. La Electricidad de Caracas for approximately US$739 million. AES expects to receive its share of a dividend which will provide up to US$98.6 million, following its conversion from Bolivares into US Dollars. As a result of this sale, the Company expects to record a pre-tax, non-cash charge in the range of US$550 to US$650 million in the first quarter of 2007. PDVSA is the state-owned oil company of the Bolivarian Republic of Venezuela.
The agreement and details of the transaction are available in a Form 8-K AES filed today with the U.S. Securities and Exchange Commission and are also available at www.aes.com under Investor Information.
About AES
AES is one of the world's largest global power companies, with 2005 revenues of $11 billion. With operations in 26 countries on five continents, AES's generation and distribution facilities have the capacity to serve 100 million people worldwide. Our 14 regulated utilities amassed 2005 annual sales of over 82,000 GWh and our 123 generation facilities have the capacity to generate approximately 44,000 megawatts. Our global workforce of 30,000 people is committed to operational excellence and meeting the world's growing power needs. To learn more about AES, please visit www.aes.com or contact AES media relations at media@aes.com.
Safe Harbor Disclosure
This news release contains forward-looking statements within the meaning of the Securities Act of 1933 and of the Securities Exchange Act of 1934. Such forward-looking statements include, but are not limited to, those related to future earnings, growth and financial and operating performance. Forward-looking statements are not intended to be a guarantee of future results, but instead constitute AES's current expectations based on reasonable assumptions. Forecasted financial information is based on certain material assumptions. These assumptions include, but are not limited to, continued normal levels of operating performance and electricity demand at our distribution companies and operational performance at our contract generation businesses consistent with historical levels, as well as achievements of planned productivity improvements and incremental growth investments at normalized investment levels and rates of return consistent with prior experience. Actual results could differ materially from those projected in our forward-looking statements due to risks, uncertainties and other factors. Important factors that could affect actual results are discussed in AES's filings with the Securities and Exchange Commission, including, but not limited to, the risks discussed under Item 1A "Risk Factors" in AES's 2005 Annual Report on Form 10-K. Investors and other interested parties are encouraged to read AES's filings to learn more about the risk factors associated with AES's business. AES undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
