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AES Corp. To Sell Stake In Indian Coal-fired Power Plants; Backs FY20 Adj. EPS Outlook

AES Corp. (AES) said Tuesday that it has agreed to sell its entire equity interest in the 1,740 MW OPGC 1&2 coal-fired power plants in Odisha, India to Adani Power Limited. Through this sale, AES' generation in MWh from coal will be reduced to 35 percent of total generation, from 45 percent.

"Today's announcement is a very significant step toward achieving our ambitious short- and longer-term decarbonization goals. By continuing to sell and decommission coal plants, while building 2-3 GW of renewables per year, and creating and implementing new technologies, we are fulfilling AES' mission to accelerate the transformation to a greener and more sustainable world," said Andrés Gluski, AES President and Chief Executive Officer.

AES had previously said it plans to reduce its generation from coal to below 30 percent by the end of this year, and to less than 10 percent by the end of 2030.

AES owns a 49 percent equity interest in OPGC 1&2, while the Government of the State of Odisha owns the remaining 51 percent stake. This transaction is subject to customary approvals and the consent of the Government of the State of Odisha.

AES said it had previously assumed the sale of these power plants in its 2020 guidance and longer-term expectations.

Accordingly, the company reaffirmed its outlook for 2020 adjusted earnings per share of $1.32 to $1.42, its 2020 Parent Free Cash Flow expectation of $725 million to $775 million, and its expectation for average annual growth of 7 percent to 9 percent in adjusted earnings per share and Parent Free Cash Flow through 2022.

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