The San Juan Daily Star
AES Puerto Rico, PRIDCO report losses
By The Star Staff
The Puerto Rico Industrial Development Company (PRIDCO) and AES Puerto Rico, an energy supplier, have reported losses to the market.
AES Puerto Rico recorded an operating loss of $460.1 million at the close of fiscal year (FY) 2021 on June 30, 2021. Ernst & Young conducted the audit and classified the firm as a going concern because of the Puerto Rico Electric Power Authority’s (PREPA) bankruptcy, which has impacted the partnership, and the island’s ban on coal ash deposits. AES Puerto Rico operates a 454.3-megawatt coal-fired power facility that sells electricity to PREPA.
The operating loss at the close of FY21 was 1,343% deeper than the estimated $37 million active income posted at the end of FY20, the audited financial statement filed on March 16 notes. The revenue loss is due to a 200.9% increase in total costs and expenses, which rose to $762.9 million in FY21 from $253.5 million in FY20. The report notes that the amount in revenues was $302.8 million in FY21, or 4% higher than the $290.5 million recorded in FY20.
On March 9, Moody’s Investor Service, as reported by the STAR, downgraded AES Puerto Rico’s senior secured bonds because of the increased likelihood the energy provider may not be able to meet the June 1 debt service payment.
Moody’s Investors Service downgraded the bonds to Caa2 from Caa1.
Meanwhile, PRIDCO reported that it only leased 15.9 million square feet of industrial space at the close of FY21, or 45.1% of its 23 million square feet.The information comes from an Electronic Municipal Market Access (EMMA) filing released on March 17. Of the total 23 million square feet of industrial space owned by PRIDCO, it had 3.2 million square feet leased under restrictive conditions. In comparison, 3.9 million square feet were vacant, according to the report. PRIDCO had about 189 industrial parks as of June 2021.Of the total vacant space, 2 million square feet was available for lease and 1.9 million square feet was reserved for prospective tenants for future negotiations, according to the document.
PRIDCO’s top industrial tenant is Microsoft, which pays annual rent of $5.8 million for 98,302 square feet in three different leases. The report said other tenants include Coopervision, Eaton Corp., Honeywell, Baxter International and the island Department of Economic Development and Commerce. PRIDCO had a total debt of $709.9 million at the close of FY21, the report said.