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United States utility AES Corp beats third-quarter revenue price quotes

AES Corp beat Wall Street estimates for thirdquarter profit on Thursday, driven by higher earnings from its renewables and energies sections and a lower tax rate.

The Virginia-based company saw considerable development in its renewables system in 2015, driven by a worldwide push for cleaner power generation, particularly at a time when U.S. power need is expected to strike record highs.

Its power purchase agreement backlog, which consists of projects with signed contracts however not yet functional, saw an uptick to 12.7 gigawatts (GW) from 12.6 GW in the previous quarter.

Utilities are likewise projected to see a boom in demand for electrical energy over the next decade, primarily due to the power needs of AI and data centers.

In September, McKinsey estimated that U.S. data center energy usage would increase to 606 terawatt-hours (TWh) by 2030, representing 12% of the country's overall power demand.

One terawatt-hour can power 70,000 homes for a year.

Because our last call, we have signed or been granted 2.2 GW of long-lasting contracts for eco-friendly or brand-new data center load growth at our U.S. energies, AES President Andres Gluski said.

The energy posted profits of $3.29 billion for the July-September quarter, down from $3.43 billion in the same quarter in 2015, due to lower sales at its energy facilities unit.

However, earnings in its utilities segment increased 9%, while those in its renewables sector increased 2.5%.

The business reaffirmed that its full-year adjusted revenue forecast would can be found in at the upper half of $1.87 per share to $ 1.97 per share, driven by new renewables commissionings, rate base development, and improved margins in Chile.

AES posted an adjusted profit of 71 cents per share in the third quarter, compared to analysts' price quote of 64 cents per share, according to data assembled by LSEG.

(source: Reuters)