By The Star Staff
Despite closing 2022 in December with $3.5 million in revenues, AES Puerto Rico continues to face going-concern questions in an audited statement, a filing to the markets notes.
The number in the market filing significantly improved compared to the nearly $456.5 million net loss posted at the end of fiscal year (FY) 2021, the audited financial statement filed this week said.
AES sells energy to the Puerto Rico Electric Power Authority, which has been in bankruptcy since 2017. AES in February anticipated that it would not have sufficient funds to repay the bond debt service payment due June 1. The firm operates a 454.3-megawatt coal-fired power plant in Guayama.
Fitch Ratings affirmed AES Puerto Rico L.P.’s (AES PR) $161.9 million ($144.7 million outstanding) cogeneration facility revenue bonds Series A (tax-exempt bonds), issued through the Puerto Rico Industrial, Tourist, Educational, Medical & Environmental Control Facilities Financing Authority, at ‘C’ earlier this month.
The improvement in the numbers was the result of a 65.6% decrease in total costs and expenses, which were $262.5 million in FY22, compared to $762.8 million in the previous fiscal year. The significant cost and expense figure recorded in FY21 resulted from depreciation and impairment of $508.5 million, a budget item that was only $4.2 million in FY22.
AES Puerto Rico’s results in FY21 had been impacted by the recording of an impairment expense of $502.4 million due to new regulations for the use of coal combustion residuals in Puerto Rico during 2021, the filing noted.
Meanwhile, revenues were $285.3 million in FY22, 4.2% lower than the nearly $302.8 million recorded in FY21, the document said.