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AES anticipates lower Q1 adjusted EPS, settles outstanding receivables in Bulgaria

Despite reaffirming its full-year 2016 guidance for allmetrics, AES Corp. isexpecting its first-quarter adjusted EPS to be significantly lower than the 25cents result in the same period in 2015.

The company said April 27 that its first-quarter adjustedEPS was impacted by a higher adjusted effective tax rate, primarily as a resultof the enactment of income tax reforms in Chile. AES, however, continues toexpect its full-year 2016 tax rate to be 31% to 33%.

AES is also keeping its full-year 2016 adjusted EPS guidancerange of 95 cents to $1.05 and its proportional cash flow guidance range of$1.0 billion to $1.35 billion.

In the same news release, AES said its Bulgarian subsidiaryAES 3C Maritza East I received €309 million, or $350 million, in outstandingreceivables from the state-owned wholesale power company NEK.

The payment was related to Maritza's amended power purchaseagreement, which reduces the capacity payment to the company by 14% through2026, in exchange for the payment of full outstanding receivables. Maritza willuse the majority of the proceeds to pay the local coal mine that supplies the600-MW plant with lignite fuel and repay lenders of the plant's non-recoursedebt.

"The resolution at Maritza is another step in ourefforts to improve the stability of our financial results," AES ExecutiveVice President and CFO Tom O'Flynn said. "With our progress to-date andour outlook for the remainder of 2016, we remain on track to deliver on ourfinancial and strategic objectives."

AES is scheduledto release its first-quarter results on May 9.