Q1 2021 Central Puerto SA Earnings Call
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Good morning, and welcome to the Central Puerto Conference call. Following the results announcement for the quarter ended on March 31st 2021.
All participants will be in a listen only mode should you need assistance. Please signal a conference specialist by pressing the star key followed by zero.
After todays presentation, there will be an opportunity to ask questions. Please note. This event is being recorded if you do not have a copy of the press release. Please refer to the Investor support section on the company's corporate website at Www Dot central Puerto Dot Com a replay of.
Today's call may be accessed by accessing the webcast in the Investor support section of the central Puerto corporate website.
Before we proceed please be aware that all financial figures were prepared in accordance with I F. R. S. And are stated in Argentinian peso must otherwise noted is worth noting that the financial statements for the quarter ended on March 31, 2021 and could be iffy.
Ex of the inflation adjustments from <unk>.
Accordingly, the financial figures mentioned during the call, including the data from previous periods and the growth comparisons have been stated in terms of Argentine peso as of the end of the reporting period.
Also please note that certain statements made by the company. During this conference call on forward looking statements and we refer you to the forward looking statements section of our earnings release and recent filings with the S. E C.
Yeah.
Central Puerto assumes no obligation to update forward looking statements, except as required under applicable security laws to follow the discussion by their please download the webcast presentation available on the company's website.
Please be aware that some of the numbers mentioned during the call maybe round it to simplify the discussion.
On the call for Central Puerto is Fernando Bonnet, Chief Executive Officer, and we get from now Chief Financial Officer. He loves this Monday, Chief financial manager and Nicholas Matchy Investor Relations Officer.
And now I will turn the call over to Fernando Bonnet. Mr. Burnett. Thank you you may begin.
Thank you very much good morning on world.
For me now.
Today, we know where management team from water sales to report on the result on the first quarter 2021.
Are there any questions Michelle.
Today's call on our lives in the developments over the first quarter and comment on the bromine from full response from promotion right.
On the borders.
What percentage of recently mentioned.
So that's a hole on going now into phase III as you may recall during 2020 and measures to prevent the spread of the COVID-19 burden on them.
On the bromine has a forward Brushy canyon on six new cogeneration.
During the quarter on we have continued with the construction of the new terminal six San Lorenzo cogeneration plants reach abroad, as well from 92% simple.
Total three months next season November 2020.
Obtain a person commissioning discussed we're buying.
Two harmony on 69 megawatt selling energy.
Bookmark abbreviation.
One is youll be before Russia, you said cheap which is expected towards the third quarter of 2021.
The plant will be ready, we're ready to get under a 15 year PPA on the energy side on it.
On sales team to a Brexit taker and they're also a 15 year conflict.
Well, we know toward key performance indicators on the fourth quarter.
Can see on page four energies on rate during the first quarter was.
3479, Shea what Saar works with electricity.
11% lower during the same B 22, and this was mainly due to a three Henry on <unk>, what's our drops from generation from our theater.
Peter I like their hydro plant.
Related to a low water inflows.
180, Shea on for our decline in our 10 months from Asia.
Mainly due to a small failures in our work force.
Our first combined cycle on some of our standard two buttons.
Firstly on upset by the generation.
From the new wind farms, Montana, he was on the hint a little one renewable energy increase 60.
56, <unk> compared to the same quarter of 2020.
The team production during the fourth quarter increased 3% due to avoid availability on generation of phone, where you can be crucial cogeneration plant.
Regarding the availability of thermal units during the first quarter of 2021 it reached 80.
9% as compared to 183% during the same quarter of 2020. This was mainly due to small failures in our Puerto Rico's combined cycle. During March 2021 on some of this team to providing software from the push of loans.
Still this indicator remained significantly higher mark Khatami availability from thermal unit, which was 81% for the same period. According to data from Gamesa.
Finally regarding two spot market starting from scheme is worth to mention that we have several on calls and meetings with the subsequent study of energy in which we discussed on the necessity and the urgency to have an adjustment in these reiteration scheme, which was free since February 2020.
And we are expecting to have news in this regard in the next weeks.
And now I will turn the call over Mila gross who will comment on the financial highlights.
Thank you from them and we start referring to assemblies and financial needs for the company and then comment on the essentials the first quarter total.
Oh, sorry, 25% growth anticipated to extend the TSA revenue linked to any restrictions.
The communications 71 fixed.
Until December 31, 2000 can you on through the issuance of the communications 72.
They've done meant on the syndicated loans same with TD Bank JP Morgan Chase Bank on London.
For the applications that are going to get loans.
And then let queuing on June September and December 'twenty, two one on in this COVID-19 situation.
So if the agencies price relief human day negotiations with this time to reschedule those system.
When we announced our results for the quarter on.
<unk> reached our revenue square 10000, 164 million pesos compared to 11000 419 million pesos during the first quarter <unk>.
Decrease was mainly due to a 31% decrease from spud state's energy investing.
<unk> totaled 4160 $6 million in first quarter on 22 one.
Compared to 6000 50 million pesos in the first quarter of 2018, mainly due to the macro from monthly price adjustment of the solutions that you won is Chuck too by the secret on growth.
On April eight <unk> on tour.
<unk> expense to smooth say nursing, but those combined cycle on some of its team.
This was partially offset by a 13% increase in sales.
Content, which amounted Frank.
444 million businesses in the first quarter from 22, one as compared to 4800 33 million pesos net.
First quarter of 2020, mainly due to the new wind fronts mentioned Apple on 9% increase in steam state Wichita.
Which totals 200 on 81 basis in the first quarter of 2021 compared to 258 million pesos in the first quarter of 'twenty 'twenty on 15 production increased 3% in Newport Beach.
On a gross profit was 4970 3 million pesos in the first quarter of 2021 compared to 6006 standard maybe $60 million.
Based on <unk> in the first quarter of 2022.
This decrease was due to the above mentioned aviation revenue on that 10% increase in nickel sales space. That's total.
<unk> thousand one funded on 91 million pesos compared to 4700 on $34 million in the first quarter of 2020.
This increase in the cost of sales was primarily driven by a 43% increase in purchases of materials from spare parts, which total 1645 medium basis during the first quarter.
Year to 942.
Million pesos in the first quarter of 2020 on those.
So a 6% increase in cost of production, which total 4050 2 million pesos in the first quarter on 2021.
Bear to 3800 60 million pesos in the first quarter of 2020, mainly due to the increase in depreciation from 349 based on an increase in maintenance expense diesel.
170 <unk> medium.
Given the current scenario with no adjustments for units on the MCR framework. The company made a total review on expenses, therefore administrative and selling expenses were reduced 11% in real terms.
Safety more than 100 million during the first quarter of 2020, one as compared to the same period of 2020.
Gross profit margin was 49% during the first quarter of 2021 compared to 59%.
Quarter on <unk>.
Moving to page six we can see the changes in our EBITDA with Gs 9670 $9 million in this quarter compared to.
10800, 48 million pesos in the first quarter of 2020. In addition to the on aviation in gross profit mentioned this was mainly due to a 17% decrease in foreign exchange difference on operating assets, mainly related to foreign trade receivable.
That generated 2000 862 million pesos gain during the first quarter of 2021.
<unk> 3000, 461 million peso during the first quarter of 2018. It is worth mentioning debt. During 2020 from Mr. Has competed full scale payments of principal and interest in accordance with our four new agreements for them related data.
Based on marketing and 10 million net acre Manuel will hit on.
This was partially offset.
By a higher depreciation of the Argentine peso as a reference during the first quarter of 2021, the Argentine peso depreciating, 928%.
Compared to 777% during the first quarter of 2018.
<unk> gross profit was also due to a 44 decrease in interest from guidance with total.
<unk> hundred on 13 million pesos during the first quarter of 2021 compare that to 1090 4 million basis from the first quarter of 2020, mainly.
Mainly related to the total collection of the Formula agreements for some months in Unmeasured channel during 2010.
Well on this was partially offset by an increase in depreciation and amortization. That's total 1900 13 million vessels. During the first quarter of 2021 as compared to 1650 $7 million during the first quarter of 2020 during this quarter.
No impairment accounting compared to the 1001 on the on site medium basis on the first quarter of 2000.
Going to page seven the consolidated net income was 640 million pesos compared to 1000 364 million pesos in the same period of 2020. In addition to the factors mentioned before the net income was positively impacted by a high.
Financial income, which amount is 422 million pesos during the first quarter of 2021 compared to 185 million basically from the first quarter of 2020 on.
To a lower income tax expense is that a melanie $450 million basis in the first quarter of 2021 compared to 2000 835 million in the first quarter of 2020.
Also.
Net income was negatively affected by higher financial expenses debt amounted seven.
On.
On 12 million pesos in the first quarter of 2021 compared to six central 113 million pesos in the first quarter of <unk>.
Mainly due to higher volume.
Foreign exchange difference on loans, most of which are denominated in U S dollars.
The share of profit on a vessel.
<unk> was $267 million based on slow.
During the first quarter of 2021 compared to 77 million Yang during the first quarter of 2020, mainly due to lower results of the operations of income due to a local studies adjustments for the natural gas distribution business is.
Finally, they gain on monetary position total 191 million pesos. During the first quarter of 2021 compared to 40 447 million pesos in the first quarter of 2000 tons go into page eight <unk> CEO of cash flow for the first quarter ending on March.
2021.
Net cash provided by the way. These activities was 4000 21 million basis.
This included 1100 $90 million in connections from.
On what <unk> done on.
Net cash provided by investing activities for free content 8 million pesos.
Additionally, on the financing side 4430 non media Worldview.
For <unk>.
<unk> investment accounts overdraft payments for 1170 1 million non terms loans for 2000 228 million pesos.
Interest and other gross loans for 1000 on a 41 million basis.
Thank you and now we invite you to ask any questions to our team.
Okay.
Thank you we will now begin the question and answer session to ask a question you May Press Star then one on your Touchtone phone. If you are using a speakerphone. Please pick up your handset before pressing the keys to withdraw your question. Please press Star then two at this time, we will pause momentarily to assemble.
Buster.
Our first question comes from a line of Frank Mcgann with Bank of America. You May proceed with your question.
Okay. Thank you very much.
I wondered.
In terms of the legacy price adjustment that you said you've been discussing with the secretary of energy and others have suggested that as well it sounds like you're fairly confident I guess.
I'm just wondering if you have on each deal for how material that could be what how it might be structured particularly in light of what we saw with the distribution increase that was granted recently I'm just wondering.
How how much risk may be there is associated with getting it and then secondly, just a couple.
More.
One day can you just in terms of the current hydro situation.
Yeah, no I get that.
And the peripheral plant the day.
The issues that you had with it.
Provide a little bit more detail, maybe if those are completely resolved with the search.
Okay, great. Thank you Francois on your for your question.
And then in terms of <unk>.
Increasing resolution on 31.
And we Toby Nicole we considered all made in June last year, we did subsequent LNG.
Thank you Carlos Alonso.
We have additionally in new ingredient.
Maybe I'll have Dennis would you be taken senior financing in.
Those meetings we assets.
As we mentioned we discussed on all good news.
<unk> vs adjustment.
Really understand integration the agreed with our integration day one to move.
In the same on.
Try to move together.
And starting from <unk> <unk>.
Taking one by one one to solve.
The increase is the whole day.
Work on the on the gas sector, we work on the on the electricity distribution shake transformation.
And last one each day.
It is our our increased.
And we thought we can in order to resolve the issue.
Resolution, three one which income establishing mechanics from too.
Adjustments to net adjustments.
Based on again, each on which is <unk>.
Related to deflation.
Yeah.
And we've seen got day.
On the believed that this price obviously is not.
On the way the slip at all.
<expletive> Wei.
So.
So all day.
<unk> planned to make Thats, a commodity which is establishing the resolution day out of sync in Marina and an adjustment of India on the all day you'd receive on adjustments.
Loans.
A year in order to cover inflation.
And I think <unk>.
EMEA on niches that the only the only thing that the spending needs to cloud.
A final number.
On <unk> when needed.
On our blog, we've talked with them.
<unk> average LTV effect from February.
I think they're willing to do to agenda GTT 70, due to a new study suggesting from February.
But we don't have the final numbers on.
Okay.
Firstly on it.
On the case of the generation.
Yes.
Net interest changed.
On an increase from 30% to say so and regeneration.
In terms of distributions can be one on the impact on the guidance and the final balance which is very very small based on one five.
So.
There is no loans.
There is no restrictions in the do it for a one two as I mentioned <unk>.
Moving in line with.
First sold.
Distribution on GAAP issues from them.
So.
Working on closing day.
The resolution for everyone increased we are confident that we run on a move forward and they want to move forward in that way.
On a formal increase with Colorado need.
Part of the inflation that we suffer but we don't know yet from the final number we don't have it with high net.
Number coming from them.
Zero.
B from information coming from moving from the news.
But we don't have the final final numbers coming from them.
As for they asked for calculations to domain surrounding 29% increase making numbers on our own debt.
We don't have this four months on conversion.
It will be going on.
And so this is the information that we have on <unk>.
Sure.
In terms of.
The other deal you are on <unk>.
In this situation.
<unk>.
The sequential increase in.
More or less the same as last year, we filed.
Our drive <unk> in the in the inflows from it was an inflow would have missed what the income that new normal on the media on the loss.
15 to 20 years, we are having very dry years, we do and I know you'd ask so this explain why.
The production on regeneration and beauty net is latest on lending.
On the robot.
We don't know yet.
His attendance, we've still seen that this day.
Is it a dry period only.
We are are we on lighting.
With the expansion at <unk>.
For example on the next year moving in terms of.
Inflows water inflows towards year end on this.
It's only that we don't suffer any problems.
In the in the turbine keys on sharpening the restraint on constraining in terms of lines. These budget is only about water inflows.
And in the case of central Puerto Us assume Australia. Additionally.
In the gateway central portal.
Suffering difference small failures in our combined cycle here and we're on the scientists.
All of these failures on our asset maintenance on small.
<unk> related to volume related to.
Good day.
On the volume there some failures in the volume, but nothing that.
On the extremely embarked on volume takes on a few days in order to to come back on line.
That was what we suffered debt reduction and production and import is not related to the dispatch compensate these many efficient so.
Every time that the delay level on these.
The combined takeaways from these such but we suffered a emission standard.
Small failures during the first quarter you May now day combined Taiwanese operating normally without any problem.
So.
We don't think that these small failures will be.
Helping again.
Near future.
Okay great.
Follow up.
You mentioned that.
An estimated 30% increase in the legacy on tariffs would be what percentage to the legacy price would be what percentage of the final tariff.
One five.
No no no no no. This is this is the impact that we.
We don't know day named oriented as we mentioned we had a few perhaps lithium from Nielsen on the breadth and I mean, as I mentioned, the secular trend in CF calculations to commence on regarding the.
The 29% in Greece 29.
But they mentioned that these 29 as we apply these three nine day impact on the final tariff is very small is left on one 5%.
Okay, Yeah, that's what I'm on okay. Thank you very much.
Youre welcome.
If you would like to ask a question. Please press Star then one on your telephone keypad.
Our next question comes from the line of my Mom will see loaded with Milan capital. You May proceed with your question.
Hi, everyone. Thank you for taking my question.
Like to ask you about.
Terminal six you mentioned that you have reached 19 chip our sand completion. So what's the remaining capex for these and then another question are you planning to.
The top of the market during 2021.
Thank you.
Okay.
Okay.
Thank you for your question.
Yes, we are at 92% the remaining capex needs for Tony on <unk>.
The remaining capex is around $15 million.
And in.
In the same conclusions regarding from the second question.
We are not right now we are not thinking to to go back to the marketing.
In 2021, because we will not have any additional capex the capex in EMEA in this in this year.
We are restructuring our debt our short term debt.
Because the resolution of the Central bank, but we are restructuring in fact.
So we don't think by now of course, perhaps from some opportunities may appear but we are not seeing may now rolling into the market.
So do you have any updates on the syndicate and negotiate channel.
Yes, we are discussing the extension rigs.
Got into the 60% of my last three installments.
We are on the process, we do with the balance we are not clear on.
These proceeds on a gross but we haven't.
Advanced Ccs.
Okay. Thank you very much.
Our next question comes from the line of Alan Ross You May proceed with your question.
Hello, Thanks, everyone.
My question is.
Two questions, mainly regarding the resolution 31 'twenty.
First thing is.
Is there a strategy in discussion is it going to be like the increase to the fixed price for another term or can it be like a variable price and then the <unk>.
Thing is is there any deadline because you said, we don't have any information from the parties is there like a timeframe that day to provide us either yes or no.
Could be an increase in the price we're definitely no deadline.
And then if there is any update to I see where we would we see that would it be on the news on the web site.
On use posting.
That's it thanks.
Okay. Thank you for your question.
As we have been talking with them on as we see the things going on.
We don't see.
A new scheme, we see an increase on debt on that fixed price.
At least for for this for this.
Next month's exiting that.
<unk> will be the new opening of discussion about the new increase will depend on the on the inflation, but a T S.
As we mentioned on a new fixed price.
For a period of time I don't know for how many months, but that will be depending on.
On the inflation on house cultural win on that.
If we have a higher inflation and I think we need to to discuss a new and you increase.
But we need a new resolution this week.
As in the past always increasing the resolution Ottawa.
Total scheme Kim.
And by a resolution of the cigarette value energy.
It's not like an automatic increase.
So.
As we see the education on right now.
This increase will be funded for a period I don't know force, how many months, but that will be depending on the on the inflation Cogs moving on.
Is it inflation is get smoothed smoother run down.
We desire.
But how can we maintain this increase for.
Perhaps on the elections.
And then.
Inflation on goes up we need to do these cash.
Adjustments on.
We request that at least.
Yes.
And I think they're working on what how you Oh, how weak on a percentage increase I think will be a republic because its a resolution that we can.
Also spray something on our on our.
The website also yes or a lease on a.
On perhaps on a relevant release on our press release yet.
When club.
Okay. Thank you very much.
Hello, Welcome from me.
Okay.
This concludes our question and answer session I would like to turn this conference back over to Mr. Goh net for closing remarks.
Well. Thank you everyone for your interest in surplus we encourage you to call us for any for a range on that you may need to have a great day. Thank you.
This conference has now concluded. Thank you for attending today's presentation. You may now disconnect your lines.
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Net.
Sure.
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Yeah.