Monday, March 3, 2008

AES restatement to lift earnings by $3 mln. And: To Invest $10 Bil. in Renewables

Here's something you don't see every day.
From Reuters:

Power producer AES Corp (AES.N: Quote) said on Monday it would restate its financial reports for 2005 and 2006 and stated that correcting the errors in those reports would add $3 million to its earnings.

The non-cash adjustment to the earnings relates to the accounting treatment for a power purchase agreement for the company's facility in Deepwater, Texas, AES said in a filing to the U.S. Securities and Exchange Commission.

The adjustment will reduce net income by $4 million in 2004 and $25 million in 2005 but add $32 million to the 2006 earnings....MORE

And from the Times of India:

Power company AES Corp said on Friday it would spend $10 billion globally on renewable energy projects over the next five years as fast growth in Asia, particularly China, become the focus for its global business.

The Arlington, Virginia-based company originally projected a 5-10 year timeframe for the investment, but record high energy prices and strong Asian economic growth moved that forward, Chief Executive Paul Hanrahan said.

"We've seen so much growth and opportunity in this sector, it really will be over the next five years," he said. That expansion will be driven by China, which will become AES's global centre for engineering and procurement....MORE

I'll have more on this when it gets closer to the final mark-up on Lieberman-Warner. In the meantime, think CDM.