Held-for-Sale and Dispositions

12 Months Ended

Dec. 31, 2024

HELD-FOR-SALE AND DISPOSITIONS

Held-for-Sale

Ventanas — In December 2024, the Company signed an agreement for the sale of its 100% ownership interest in Empresa Electrica Ventanas SpA and Nucleo SpA (collectively "Ventanas"), owner of a coal-fired energy generation facility in Chile, for $5 million. The sale closed in January 2025. Ventanas was classified as held-for-sale but did not meet the criteria to be reported as discontinued operations. On a consolidated basis, the carrying value of net assets after impairment of the plant held-for-sale as of December 31, 2024 was $6 million, and a pre-tax asset impairment expense of $125 million was recorded. See Note 23—Asset Impairment Expense for further information. As of December 31, 2024, the significant assets and liabilities of Ventanas are inventory, deferred income tax, and accrued asset retirement obligation for $58 million, $56 million, and $43 million, respectively. Ventanas is reported in the Energy Infrastructure SBU reportable segment.

Dominican Republic Renewables — In December 2024, the Company entered into an agreement to sell 50% of its interests in AES DR Renewable Holding and its subsidiaries (collectively "Dominican Republic Renewables"), whose main objective is the operation and administration of energy generation assets from primary energy resources. After completion of the sale, the Company will retain a 50% ownership in Dominican Republic Renewables, which will be accounted for as an equity method investment. The sale is expected to close in the second quarter of 2025. As a result, Dominican Republic Renewables was classified as held-for-sale but did not meet the criteria to be reported as discontinued operations. Since the fair value less cost to sell exceeds the carrying value, there is no impairment to be recorded. The carrying value of net assets held-for-sale as of December 31, 2024 was $95 million on a consolidated basis. As of December 31, 2024, the significant assets and liabilities of Dominican Republic Renewables are property, plant and equipment and debt of $414 million and $350 million, respectively. Dominican Republic Renewables is reported in the Renewables SBU reportable segment.

Mong Duong — In November 2023, the Company entered into an agreement to sell its entire 51% ownership interest in Mong Duong 2, a coal-fired plant in Vietnam, and 51% equity interest in Mong Duong Finance Holdings B.V, an SPV accounted for as an equity affiliate (collectively "Mong Duong"). The sale is subject to regulatory approval and is expected to close by early 2026. As a result, Mong Duong was classified as held-for-sale, but did not meet the criteria to be reported as discontinued operations. On a consolidated basis, the carrying value of net assets after impairment of the plant held-for-sale as of December 31, 2024 was $357 million. Management has recorded pre-tax asset impairment expense of $62 million at Mong Duong. See Note 23—Asset Impairment Expense for further information. As of December 31, 2024, the significant assets and liabilities of Mong Duong are a long term financing receivable of $963 million and debt of $526 million, respectively. Mong Duong is reported in the Energy Infrastructure SBU reportable segment.

Excluding any impairment charges, pre-tax income (loss) and pre-tax income (loss) attributable to AES of businesses held-for-sale as of December 31, 2024 was as follows (in millions):


Year Ended December 31,	2024		2023		2022
Pre-tax income of businesses held-for-sale:
Mong Duong	$	79	$	92	$	109
Ventanas	3		13		(5)
Dominican Republic Renewables	(6)		(4)		4
Total pre-tax income of businesses held-for-sale	$	76	$	101	$	108

Pre-tax income attributable to AES of businesses held-for-sale:
Mong Duong	$	34	$	40	$	50
Ventanas	3		13		(5)
Dominican Republic Renewables	(4)		(3)		3
Total pre-tax income attributable to AES of businesses held-for-sale	$	33	$	50	$	48

Dispositions

AES Brasil — In October 2024, the Company completed the sale of its 47.3% controlling interest in AES Brasil Energia S.A. ("AES Brasil"), a 5.2 GW portfolio of renewable energy that is 51% hydroelectric, 43% wind, and 6% solar, for $586 million, resulting in a pre-tax gain on sale of $312 million reported in Gain (loss) on disposal and sale of business interests on the Consolidated Statement of Operations. The sale did not meet the criteria to be reported as discontinued operations. Prior to its sale, AES Brasil was reported in the Renewables SBU reportable segment.

Jordan — In March 2024, the Company completed the sale of approximately 26% ownership interest in the Amman East and IPP4 generation plants for a sale price of $58 million. After adjusting for dividends received since the execution of the sale and purchase agreement, the Company received a net cash payment of $45 million. The transaction resulted in a pre-tax loss on sale of $10 million, reported in Gain (loss) on disposal and sale of business interests on the Consolidated Statement of Operations. After completion of the sale, the Company retained 10% ownership interest in each of the businesses, whose fair value was measured using the market approach technique, resulting in deconsolidation and recognition as equity method investments. Amman East and IPP4 are reported in the Energy Infrastructure SBU reportable segment.

The following table summarizes, excluding any impairment charge or gain/loss on sale, the pre-tax income attributable to AES of disposed businesses for the periods indicated (in millions):


Year Ended December 31,	2024		2023		2022
AES Brasil	$	7	$	49	$	22
Jordan	5		21		(6)

Total	$	12	$	70	$	16