NEW YORK (AP) — The AES Corp. reported a 76 percent drop in its first-quarter net income on Thursday, as the company’s results were hit by a one-off settlement over a power plant, foreign-exchange rates and sliding revenue.
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Both earnings and revenue fell short of analysts’ estimates, and the power company’s shares dropped 3.2 percent in midday trading, losing 44 cents to $13.46.
The power company, based in Arlington, Va., earned $82 million, or 11 cents per share, in the three months ended March 31, down from $341 million, or 44 cents per share, a year ago.
On an adjusted basis, earnings were 26 cents per share. That was also a penny short of what analysts had expected, according to the data provider FactSet.
AES’s earnings took a 6-cent hit from an arbitration settlement over a power plant in Cartagena, Spain during the first three months of the year. The company said it finalized the sale of the rest of its interest in the power plant in April.
Total revenue was $4.27 billion, down 7 percent from $4.59 billion in the same quarter a year ago. That was short of the $4.34 billion analysts had predicted.
Revenue from utilities slumped in Brazil, the Andes region in South America, as well as in Europe, the Middle East and Africa.
Last year, AES announced that it was restructuring its business to save money and streamline operations.
AES shares are still trading near their 52-week high of $14, according to FactSet. They have traded as low as $9.52 over the past 12 months.
