Business
Central Puerto S A : Transcripts (CEPU 2Q25 Trans)
Central Puerto S A : Transcripts (CEPU 2Q25
About this update from Central Puerto Sa
Good day. Thank you operator. Before we begin, please be aware that this presentation contains forward-looking statements based on current outlooks and assumptions. Such statements involve risks and uncertainties that may cause actual results to differ materially. Also, U.S. dollar figures presented may be impacted at a non-cash level, as our Financial Statements are prepared in Argentine pesos and subsequently converted into U.S. dollars solely for comparability and analysis purposes. Investors are advised to review the full disclaimer and financial statements available on Central Puerto's website and public filings. Adjusted EBITDA is a non-IFRS measure and should not be considered separately, so please refer to our Financial Statements. ----------- In the second quarter of 2025, the Adjusted EBITDA was 61.4 U.S. million dollars, which reflects a 32% decrease compared to the 89.9 U.S. million dollars in the previous quarter, and above 35% compared to the second quarter of year 2024. Last twelve months Adjusted EBITDA was 309.9 U.S. million dollars, an 8% above the full year 2024. In the second quarter, FONINVEMEM debt collections was of 17.2 million dollars. Total generation volumes in this quarter were 4,372 GWh, a 24% decrease compared to the first quarter, and 12% decline year on year. The decrease compared to the previous quarter is primarily due to the one-time scheduled upgrade and maintenance of Central Costanera's Mitsubishi combined cycle and the steam turbine 6 from Central Puerto's complex. Revenues in this quarter were 179.6 U.S. million dollars, a decrease of 8% compared to the previous quarter and an increase of seven percent compared to the same quarter of the previous year. From total revenues, in this quarter, 89.6% of total revenues came from power sales. Such revenues in this quarter decreased from the previous quarter due to seasonality of spot capacity charges and lower volumes as discussed before. These effects were partially offset by additional self-managed fuel procurement, for the T6 plant and other fuels procured. On the regulatory front, spot prices in pesos were adjusted every month for inflation, as set by the Energy Secretariat - adding up to a compounded five-point-one percent for the quarter. In Addition, still on the regulatory front, last Thursday the National Executive Branch released the Decree 476 with further definitions on hydro concession extensions. We will review that decree in the following slide. Capital expenditures in the first semester of the year were 102.4 U.S. million dollars and were mainly allocated to the 155 MW of installed capacity we are building. From this additional capacity, 140MW will come from the closing of the Brigadier Lopez combined cycle while 15MW from the San Carlos solar project. Both projects were at an approximate eighty percent completion at the end of the quarter, with an expected C.O.D. before year end. Finally, our solid financial position is reflected in the balance statement of the quarter, with a resulting Net leverage ratio of 0.56 times the last twelve months adjusted EBITDA. -------------------- As discussed before, the Energy Secretariat has allowed monthly adjustments to peso-denominated electricity spot prices to reflect inflation. Regarding Piedra del Águila concesión extensión. Last Thursday, thi National Executive Branch issued Decree number 476. This decree established a new set of terms and a required an Adhesion Agreement. It also granted an additional ninety-day period for the current concession and opens the possibility for it to be extended until the end of the year. --------------- Second quarter Adjusted EBITDA decreased 32% quarter over quarter, mainly due to seasonality of capacity charges and the maintenance works in Costanera and Central Puerto plants that impacted in lower revenues and additional opex related to such maintenance works. The resulting last twelve months adjusted EBITDA is 8% above full year 2024 adjusted EBITDA. Also, to account for this quarter's results, FONINVEMEM collections were 17.2 U.S. million dollars. ----------------------- Power generation volumes of the quarter were impacted by: - Central Costanera's Mitsubishi combined cycle, with 1,200 GWh below the previous quarter. Also, the central puerto's steam turbine 6 was below the previous quarter by 186 GWh. This resulted in a total thermal availability rate of 68%, an average combined cycle availability of 73% and an average steam and gas turbines availability rate of 60%. The Steam production increased 23% in the second quarter compared to the previous quarter. -------------------- Total revenues were 176 U.S. million dollars. While energy generation related revenues, were 160.9 U.S. million dollars. In the second quarter, spot revenues were impacted by the seasonal capacity charges established under Resolutions 59 and 294. This led to a quarter-over-quarter revenue reduction of 19.2 million dollars. Additionally, the lower volumes sold impacted in the energy component of spot revenues by 12.5 U.S. million dollars. These effects were partly offset by additional 18.4 U.S. million dollars from self-managed fuel procurement for our T6 plant and other fuels as authorized under Resolution 21. Spot peso-denominated prices represented 16% of total revenues, and during the quarter such prices maintained parity with the inflation and the exchange rate variation. --------------------------- Our ongoing pipeline of projects is the cornerstone of our growth strategy. Let's begin with Brigadier Lopez, a thermal power project that is nearing completion. With the closing of the brigadier lopez combined cycle, we are adding 140 megawatts of installed capacity to its current capacity, bringing the total installed capacity to 421 megawatts. Total project investment will be approximately 185 U.S. million dollars and we are on track for commercial operation in the fourth quarter of 2025. Next, we have the San Carlos solar project, which will deliver 15 MW of installed capacity with an estimated CAPEX of 18 U.S. million dollars. Like Brigadier Lopez, San Carlos is expected to be operational before year end. Finally, we turn to Alamitos, a wind power project planned for a 130 MW, with potential expansion to 150 MW depending on final technology offers. With an estimated investment of 130 or 150 U.S. million dollars, Alamitos is currently in the bidding phase for power generation technology and engineering services. Construction is scheduled to begin in the first quarter of 2026. Also, central Puerto is participating in the battery storage tender process: we submitted bids for 155 MW through Central Puerto and 55 MW through Central Costanera. The AlmaGBA tender process is ongoing, with final definitions expected by the end of August. Let us also briefly touch on the hydro concession extensions. Last Friday the National Executive Branch released new conditions that are under our analysis at this moment. As discussed earlier, our Strong balance sheet and financial flexibility is reflected in these figures. Our outstanding financial debt was 409 U.S. million dollars as of June 30th, and cash, cash equivalents and current financial assets balance was 235 U.S. million dollars. The resulting net leverage ratio was 0.56 times the last twelve month adjusted EBITDA. Outstanding credit under the Foninvemem program stood at 166.5 U.S. million dollars and is being collected in monthly installments through May 2028. Also, it is good to remark that Our capital expenditures of the semester were fully financed by our operating cash flow. --------------------------- On the market overview, variations in the demand reflect the seasonal effect of the second quarter of the year, where the temperatures were milder, compared to the previous quarter. On the composition of the offer, hydroelectric power generation is being impacted by low water levels. Total system installed capacity remained quite stable. ------------------------ Now, to conclude, we would like to share our Takeaways for the second quarter of the year. Starting from our growth plan that is already adding around 300 MW of installed capacity, reflecting our active focus on growth opportunities, with the Brigadier Lopez combined cycle closing and the San Carlos solar farm that are nearing conclusion and the Alamitos wind farm that is currently in the design phase. We are also looking forward to the developments in the battery storage tender process and hydro concession development. On the operational front, we have highlighted our operation efficiency and availability advocacy for high standards which are reflected in Central Costanera's Mitsubishi combined cycle maintenance works and the Upgrade of steam turbine six from Central Puerto complex. On the regulatory front, we expect additional government disclosure to the ongoing electricity market reform. Including economic signals to expand our self-managed procurement of fuel, as allowed under Resolution 21. Thank you for your attention, now we can move to the Q&A session.