Held-for-Sale and Dispositions (Notes)

3 Months Ended

Mar. 31, 2025

Discontinued Operations and Disposal Groups [Abstract]

DISPOSITIONS AND HELD-FOR-SALE BUSINESSES

HELD-FOR-SALE AND DISPOSITIONS

Held-for-Sale

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. On a consolidated basis, the carrying value of the disposal group held-for-sale as of March 31, 2025 was $116 million. Since the fair value less costs to sell exceeded the carrying value, no impairment was recorded. As of March 31, 2025, the significant assets and liabilities of Dominican Republic Renewables were property, plant and equipment and debt of $434 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. Since the carrying value exceeded the fair value less cost to sell, the Company recognized pre-tax impairment expense of $17 million during the three months ended March 31, 2025. On a consolidated basis, after impairment, the carrying value of the disposal group held-for-sale as of March 31, 2025 was $367 million. As of March 31, 2025, the significant assets and liabilities of Mong Duong were long-term financing receivables and debt of $934 million and $525 million, respectively. See Note 16—Asset Impairment Expense and Note 14—Revenue for further information. 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 March 31, 2025 was as follows for the periods indicated (in millions):


	Three Months Ended March 31,
(in millions)		2025		2024
Pre-tax income (loss) of businesses held-for-sale:
Mong Duong		$	26	$	23
Dominican Republic Renewables		6		(1)
Total pre-tax income of businesses held-for-sale		$	32	$	22

Pre-tax income (loss) attributable to AES of businesses held-for-sale:
Mong Duong		$	12	$	10
Dominican Republic Renewables		4		(1)
Total pre-tax income attributable to AES of of businesses held-for-sale		$	16	$	9

Dispositions

Ventanas — In January 2025, the Company completed 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. An immaterial loss on sale was recognized for the three months ended March 31, 2025 as a result of this transaction. The sale did not meet the criteria to be reported as discontinued operations. Prior to its sale, Ventanas was reported in the Energy Infrastructure 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 Condensed Consolidated Statements of Operations. After completion of the sale, the Company retained 10% ownership interest in each of the businesses. The fair value of the retained interest was measured using the market approach and the businesses were deconsolidated and accounted for as equity method investments. Amman East and IPP4 are reported in the Energy Infrastructure SBU reportable segment