Q2 2024 Central Puerto SA Earnings Call

August 12, 2024

Operator: Good morning, ladies and gentlemen, welcome to Central Puerto's second quarter 2024 earnings webcast. All participants will be in a listen-only mode.

Operator: Good morning, ladies and gentlemen, welcome to Central Puerto's second quarter 2024 earnings. 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 the number.

Unknown Executive: Good morning, ladies and gentlemen.

Operator: After today's presentation, there will be an opportunity to ask questions. If you do not have a copy of the press release, please refer to the Investor Relations section, Company's Corporate Web site, www. Central Puerto Rico Puerto.

Unknown Executive: Welcome to Central Puerto's second quarter 2024 earnings webcast. 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.

Operator: Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. Please note this event is being recorded.

Unknown Executive: After today's presentation, there will be an opportunity to ask questions. Please note this event is being recorded.

Unknown Executive: If you do not have a copy of the press release, please refer to the Investor Relations support section on the company's corporate website at www.centralporto.com. In addition, a replay of today's call may be accessed by accessing the webcast link at the same section of Central Puerto's website.

Operator: If you do not have a copy of the press release, please refer to the Investor Relations support section on the company's corporate website at www.centralpuerto.com. In addition, a replay of today's call may be accessed by accessing the webcast link in the same section of Central Puerto's website. Before we proceed, please be aware that all financial figures were prepared in accordance with IFRS and were converted from Argentine pesos to U.S. dollars for comparison purposes only.

Speaker Change: Good morning, ladies and gentlemen. Welcome to Central Puerto's second quarter 2024 earnings webcast. 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.

Operator: In addition, a replay of today's call may be accessed by accessing the webcast link at the same section of the Central Puerto. Before we proceed, please be aware that all financial figures we are prepared were prepared in accordance with IFRM. Converted from Argentine pesos to U.S. dollars for comparison purposes. The exchange rate used to convert U.S. dollars with the reference exchange rate. Supported by the Central Bank for

Speaker Change: After today's presentation there will be an opportunity to ask questions. Please note this event is being recorded.

Unknown Executive: Before we proceed, please be aware that all financial figures we are prepared were prepared in accordance with IFRS and were converted from Argentine pesos to US dollars for comparison purposes only. The exchange rate used to convert Argentine pesos to US dollars was the reference exchange rate reported by the central bank for US dollars for the end of each period. The information presented in US dollars is for the convenience of the reader only, and you should not consider these translations to be representations that the Argentine pesos actually represent these US dollar amounts or could be converted into US dollars at the rate indicated.

Speaker Change: If you do not have a copy of the press release, please refer to the Investor Relations support section on the company's corporate website at www.centralpuerto.com.

Operator: The exchange rate used to convert Argentine pesos to U.S. dollars was the reference exchange rate reported by the Central Bank for U.S. dollars for the end of each period. The information presented in U.S. The conversion into U.S. dollars is for convenience of the reader only, and you should not consider these translations to be representations that the Argentine Peso amounts actually represent these U.S. dollars amounts or could be converted into U.S. dollars at the rate indicated.

Speaker Change: In addition, a replay of today's call may be accessed by accessing the webcast link at the same section of the Central Puerto's website.

Operator: Dollars. Information presented in U.S. dollars; do not consider these translations to be reputable, converted into U.S. Finally, it is worth noting that the financial state, Ended on June 30th, 2024 includes the effect of Also, please take into consideration that certain statements made by Conference Call and answers to your questions may include forward-looking statements which are subject to calls for actual results to be materially. Thank you for joining us today, from the X-Factor. Thus, we refer each to the same person, and thus, we refer each to the same person.

Speaker Change: Before we proceed, please be aware that all financial figures were prepared in accordance with IFRS and were converted from Argentine Pesos to U.S. Dollars for comparison purposes only.

Speaker Change: The exchange rate used to convert Argentine Pesos to U.S. Dollars was the reference exchange rate reported by the Central Bank for U.S. Dollars for the end of each period.

Unknown Executive: Finally, it is worth noting that the financial statements for the second quarter ended on June 30th, 2024, include the effects of the inflation adjustments.

Operator: Finally, it is worth noting that the financial statements for the second quarter ended on June 30, 2024, include the effects of the inflation adjustment. Also, please take into consideration that certain statements made by the company during this conference call and in response to your questions may include forward-looking statements, which are subject to risks and uncertainties that could cause actual results to be materially different from the expectations contemplated by industry remarks. Thus, we refer you to the forward-looking statements section of our earnings release and recent filings with the FAA.

Speaker Change: The information presented in U.S. dollars is for convenience of the reader only and you should not consider these translations to be representations that the Argentine Peso amounts actually represent these U.S. dollar amounts or could be converted into U.S. dollars at the rate indicated.

Unknown Executive: Also, please take into consideration that certain statements made by the company during this conference call and answer to your questions may include forward-looking statements, which are subject to risks and uncertainties that could cause actual results to be materially different from the expectations contemplated by industry remarks. Thus, we refer you to the forward-looking statements section of our earnings release and recent filings with the FEC. Central Puerto assumes no obligation to update forward-looking statements, except as required under applicable securities laws.

Speaker Change: Finally, it is worth noting that the financial statements for the second quarter ended on June 30, 2024, include the effects of the inflation adjustments.

Alejandro: Forward Looking Statements Section of our Earnings, Central Puerto assumes no obligation to update forward-looking statements except as required. To follow the discussion better, please download the webcast presentation available on our website, where that's some of the numbers. Call, maybe you're ready. On the call today from Central Puerto is Fernando Bonnet, Chief Executive Officer, Central Puerto SA. J.K. Peranio, Chief Financial Officer, Alejandra Diaz, Corporate Finance and Investor Relations Corp. Now, I will turn the call over to Alejandro. Alejandro, thank you very much and good morning to you all.

Speaker Change: Also, please take into consideration that certain statements made by the company during this conference call and answer to your questions may include forward-looking statements.

Unknown Executive: To follow the discussion better, please download the webcast presentation available on the company's website. Please be aware that some of the numbers mentioned during the call may be rounded to simplify discussion.

Speaker Change: which are subject to risks and uncertainties that could cause actual results to be materially different from the expectations contemplated by industry remarks. Thus, we refer you to the forward-looking statements section of our earnings release and recent filings with the FEC.

Alejandra Diaz Lopez: On the call today from Central Puerto is Fernando Bonnet, Chief Executive Officer, and Rique Toranio, Chief Financial Officer, and Alejandra Diaz Lopez, Corporate Finance and Investor Relations Coordinator. And now I will turn the call over to Alejandra Diaz Lopez.

Speaker Change: Central Puerto assumes no obligation to update forward-looking statements except as required under applicable securities laws.

Operator: Central Puerto Rico assumes no obligation to update forward-looking statements except as required under applicable securities laws. To follow the discussion better, please download the webcast presentation available on the company's website. Please be aware that some of the numbers mentioned during the call may be rounded to simplify discussion. On the call today from Central Puerto is Fernando Bonnet, Chief Executive Officer, Enrique Taranio, Chief Financial Officer, and Alejandra Diaz-Lopez, Corporate Finance and Investor Relations Coordinator. And now I will turn the call over to Alejandra Diaz-Lopez. Please, Alejandra, you may begin.

Speaker Change: To follow the discussion better please download the webcast presentation available on the company's website. Please be aware that some of the numbers mentioned during the call may be rounded to simplify discussion.

Alejandra Diaz Lopez: Please, Alejandra, you may begin. Thank you very much, and good morning to you all. Thank you for joining us today on our earnings presentation, where our management team from Buenos Aires, Argentina, is going to come in on our financial results of the second quarter of 2024. I would like to take a moment to review today's agenda. I will begin the presentation by addressing shortly the main figures of the second quarter of 2024, followed by a plus update of the regulatory framework and relevant news. Then, I will show an overview of the Argentine energy sector, moving afterwards to our operational and financial results.

Alejandra Diaz-Lopez: Thank you very much and good morning to you all. Thank you for joining us today for our earnings presentation, where our management team from Buenos Aires, Argentina, is going to comment on our financial results for the second quarter of 2024. I would like to take a moment to review today's agenda. I will begin the presentation by briefly addressing the main figures for the second quarter of 2024, followed by a quick update of the regulatory framework and relevant news. Then, I will give an overview of the Argentine energy sector, moving on to our operational and financial results. Finally, at the end of the presentation, we will be happy to address any questions you may have.

Speaker Change: On the call today from Central Puerto is Fernando Bonnet, Chief Executive Officer, Enrique Taranio, Chief Financial Officer, and Alejandra Diaz Lopez.

Alejandro: Thank you for joining us today for our earnings presentation, where our management team from Buenos Aires, Argentina, is going to comment on our financial results for the second quarter of 2024. I would like to take a moment to review today's agenda. I will begin the presentation by briefly addressing the main figures for the second quarter of 2024, followed by a quick update on the regulatory framework and relevant news. Then I will show an overview of the Argentine energy sector, moving on afterwards to our operational and financial results. Finally, at the end of the presentation, we will be happy to address any questions you may have.

Alejandra Diaz-Lopez: Corporate Finance and Investor Relations Coordinator And now I will turn the call over to Alejandro Diaz-Lopez Please Alejandro, you may begin

Alejandra Diaz-Lopez: Thank you very much and good morning to you all.

Speaker Change: Thank you for joining us today on our earnings presentation, where our management team from Buenos Aires, Argentina, is going to comment on our financial results of the second quarter of 2024. I would like to take a moment to review today's agenda.

Alejandra Diaz Lopez: Finally, at the end of the presentation, we will be happy to address any questions you may have. Before going into a more exhaustive analysis of our financial and operational results, let me briefly review Central Puerto's main figures for the second quarter of 2024. The group's install capacity is 6,703 megawatts. An energy generation amounted to 4985 gigahertz during the second quarter of 2024, increasing 5% year-over-year. So, with these figures, Central Puerto keeps its leading position as a private power generation company, both in terms of install capacity and energy generation through a well-diversified portfolio of asset and power generation technologies.

Speaker Change: I will begin the presentation by addressing shortly the main figures of the second quarter of 2024, followed by a quick update of the regulatory framework and relevant news.

Alejandro: Before going into a more exhaustive analysis of our financial and operational results, let me briefly review Central Puerto's main figures for the second quarter of 2024. The group's installed capacity is 6,703 megawatts, and energy generation amounted to 4,985 gigawatt hours during the second quarter of 2024, increasing 5% year over year. With these figures, Central Puerto keeps its leading position as a private power generation company, both in terms of installed capacity and energy generation, through a well-diversified portfolio of asset and power generation technologies.

Alejandra Diaz-Lopez: Before going into a more exhaustive analysis of our financial and operational results, let me briefly review Central Puerto's main figures for the second quarter of 2024. The group's installed capacity is 6,703 megawatts, and energy generation amounted to 4,985 gigawatt hours during the second quarter of 2024, increasing 5% year over year. With these figures, Central Puerto keeps its leading position as a private power generation company, both in terms of installed capacity and energy generation, through a well-diversified portfolio of asset and power generation technologies.

Speaker Change: Then, I will show an overview of the Argentine energy sector moving afterwards to our operational and financial results.

Speaker Change: Before going into a more exhaustive analysis of our financial and operational results

Speaker Change: Let me briefly review Central Quarter's main figures for the second quarter of 2024.

Speaker Change: The group's installed capacity is...

Speaker Change: 6703 MW, and energy generation amounted to 4985 GWh during the second quarter of 2024, increasing 5% year over year.

Alejandra Diaz Lopez: Regarding our financial results, it should be noted that after the sharp devaluation that happened in December of 2023, the exchange rate kept almost flat during the first six months of 2024, while inflation, due to decreasing since December of 2023, was significantly higher. This dynamic generated inflation in dollars in Argentina. Due to Central Puerto's accounting methodology, all items in pesos must be adjusted for inflation to the end of the quarter, local currency. While the company reports its results in dollars by converting them at the end of the period official exchange rate, I mean the so-called central bank, a 3500 exchange rate.

Alejandra Diaz-Lopez: Regarding our financial results, it should be noted that after the sharp devaluation that happened in December of 2023, the exchange rate kept almost flat during the first six months of 2024, while inflation, though decreasing since December of 2023, was significantly higher. This dynamic generated inflation in dollars in Argentina. Due to Central Puerto's accounting methodology, all items in pesos must be adjusted for inflation to the end of the quarter in local currency.

Alejandro: Regarding our financial results, it should be noted that after the sharp devaluation that happened in December of 2023, the exchange rate kept almost flat during the first six months of 2024, while inflation, though decreasing since December of 2023, was significantly higher. This dynamic generated inflation in dollars in Argentina. Due to Central Puerto's accounting methodology, all items in pesos must be adjusted for inflation to the end-of-the-quarter local currency, while the company reports its results in dollars by converting them at the end of the period official exchange rate. I mean the so-called central bank.

Speaker Change: So, with these figures, Central Puerto keeps its leading position as a private power generation company, both in terms of installed capacity and energy generation, through a well-diversified portfolio of asset and power generation technologies.

Speaker Change: regarding our financial results.

Speaker Change: It should be noted that after the sharp devaluation that happened on December of 2023, the exchange rate kept almost flat during the first...

Speaker Change: 6 month of 2024, while inflation, though decreasing since December of 2023, was significantly higher.

Alejandra Diaz-Lopez: While the company reports its results in dollars by converting them at the end of the period official exchange rate, a 3500 exchange rate. This causes a non-cash impact that affects, positively or negatively, as appropriate, our financial metrics. Revenues for the second quarter of 2024 amounted to $168 million, increasing 15% year-over-year compared to the second quarter of 2023, while Adjusted EVDA reached $46 million, shrinking 27% versus the second quarter of 2023. Net income for the period was positive $8 million, decreasing 49% year-over-year.

Alejandro: A 3500 exchange rate. This causes a non-cash impact that affects, positively or negatively, as appropriate, our financial metrics. Revenues for the second quarter of 2024 amounted to $168 million, increasing 15% year-over-year compared to the second quarter of 2023, while Adjusted EVDA reached $46 million, shrinking 27% versus the second quarter of 2023. Net income for the period was positive $8 million, decreasing 49% year-over-year.

Speaker Change: This dynamic generated inflation in dollars in Argentina.

Alejandra Diaz Lopez: This causes a non-cash impact that affects positively or negatively, as appropriate, our financial metrics. Revenue for the second quarter of 2024 amounted to $168 million, increasing 15% year-over-year compared to the second quarter of 2023, while adjusted EVDA reached $46 million, shrinking 27% versus the second quarter of 2023. Net income for the period was positive in $8 million, decreasing 49% year-over-year. Finally, after debt consolidation as a result of recent M&A's operation, loan repayments, and dividend payments, net debt as of June 30, 2024, amounted to $229 million.

Speaker Change: Due to Central Puerto's accounting methodology, all items in pesos must be adjusted for inflation to the end of the quarter local currency, while the company reports its results

Speaker Change: In dollars by converting them at the end of the period official exchange rate. I mean the so-called central bank a 3500 exchange rate

Speaker Change: This causes a non-cash impact that affects positively or negatively as appropriate our financial metrics.

Speaker Change: Revenues for the second quarter of 2024 amounted to 168 million dollars, increasing 15% year-over-year compared to the second quarter of 2023.

Alejandra Diaz-Lopez: Finally, after debt consolidation as a result of recent M&A operations, loan repayments, and dividend payments, net debt as of June 30, 2024, amounted to $229 million, a reduction of $58 million vis-a-vis December of 2023, showcasing a net debt-to-adjusted EVDA ratio of 0.9 times. Now, let's move to the most recent regulatory updates and relevant facts. We anticipated in our last call the Resolution 50-A issued by the Secretary of Energy on May 6th concerning unpaid trade receivables with CAMESA.

Alejandro: Finally, after debt consolidation as a result of recent M&A operations, loan repayments, and dividend payments, net debt as of June 30, 2024, amounted to $229 million, a reduction of $58 million vis-a-vis December of 2023, showcasing a net debt-to-adjusted EVDA ratio of 0.9 times. Now, let's move to the most recent regulatory updates and relevant facts. We anticipated in our last call the Resolution 50-A issued by the Secretary of Energy on May 6th concerning unpaid trade receivables with CAMESA.

Speaker Change: while Adjusted EVGA reached $46 million, shrinking 27% versus the second quarter of 2023.

Alejandra Diaz Lopez: A reduction of $50 million vis-à-vis December of 2023, showcasing a net debt-adjusted EVDA ratio. Now, let's move to the most recent regulatory updates and relevant facts. We have anticipated in our last call the resolution 50A issued by the Secretary of Energy on May the 6th concerning on page for receivables with commethe. Regarding this resolution, Central Puerto finally accepted it on May the 16th. The payment mechanism by means of which trea receivables accrued in December of 2023 and January of 2024 were paid with Argentine Republic-USD bonds at base value. While trea receivables accrued in February of 2024 were paid with funds available in Commeth's bank's account and transfer may by the national government to the stabilization fund.

Speaker Change: Net income for the period was positive in $8 million, decreasing 49% year-over-year.

Speaker Change: Finally, after debt consolidation as a result of recent M&A operations, loan repayments and dividend payments, net debt as of June 30, 2024, amounted to $229 million.

Speaker Change: a reduction of $58 million vis-a-vis December of 2023, showcasing a net debt-to-adjusted EVDA ratio of 0.9 times.

Alejandra Diaz-Lopez: Regarding this resolution, Central Puerto finally accepted on May 16th the payment mechanism by means of which trade receivables accrued in December of 2023 and January of 2024 were paid with Argentine Republic USD bonds at face value, while trade receivables accrued in February of 2024 were funded with funds available in CAMESA's bank account and a transfer made by the national government to the stabilization fund. This resolution carried out a consolidated loss of approximately $20,459 million, or approximately $22.5 million. However, it should be noted that this resolution did not affect the ordinary course of business of the company, its payment capacity, nor its available financing options.

Alejandro: Regarding this resolution, Central Puerto finally accepted on May 16th the payment mechanism by means of which trade receivables accrued in December of 2023 and January of 2024 were paid with Argentine Republic USD bonds at face value, while trade receivables accrued in February of 2024 were funded with funds available in CAMESA's bank account and a transfer made by the national government to the stabilization fund. This resolution carried out a consolidated loss of approximately $20,459 million, or approximately $22.5 million. However, it should be noted that this resolution did not affect the ordinary course of business of the company, its payment capacity, nor its available financing options.

Speaker Change: Now, let's move to the most recent regulatory updates and relevant facts.

Speaker Change: We have anticipated in our last call the resolution 58 issued by the Secretary of Energy on May 6th.

Speaker Change: concerning on-page receivables with CAMESA.

Alejandra Diaz Lopez: This resolution carry out a consolidated loss of approximately 20,459 million pesos, or approximately 22.5 million dollars. However, it should be noted that this resolution did not affect the ordinary course of business of the company, its payment capacity, nor its available financing options. Regarding the situation of Piazzalayla, Hydro operation on May the 17th, the Secretary of Energy issued Resolution 70A by means of which it extended the transition period up to December the 28th of 2024, as it is allowed in the concession contract. On June the 14th, the Secretary of Energy issued Resolution 99, which updated promenade prices for energy and power sold in the spot market.

Speaker Change: Regarding this resolution, Central Puerto finally accepted, on May the 16th, the payment mechanism by means of which trade receivables

Speaker Change: Accru in December of 2023 and January of 2024 were paid with Argentine Republic USD bonds at face value.

Unknown Administrator: While transfer receivables accrued in February of 2024 were paid with funds available in Comesa's bank's account and transfer made by the national government to the Stabilization Fund.

Alejandra Diaz-Lopez: Regarding the situation of the Piedra de Laila hydroelectric power operation, on May 17th, the Secretary of Energy issued Resolution 70A, by means of which it extended the transition period up to December 28th, 2024, as it is allowed in the concession contract. On June 14, the Secretary of Energy issued Resolution 99, which updated remuneration prices for energy and power sold in the spot market. Promotion values increased 25% since June the 1st of 2024. So, this price adjustment positively affects our revenues during the period under analysis, but just for one month.

Alejandro: Regarding the situation of the Piedra de Laila hydroelectric power operation, on May 17th, the Secretary of Energy issued Resolution 70A, by means of which it extended the transition period up to December 28th, 2024, as it is allowed in the concession contract. On June 14, the Secretary of Energy issued Resolution 99, which updated remuneration prices for energy and power sold in the spot market. Promotion values have increased 25% since June the 1st of 2024.

Speaker Change: This resolution carried out a consolidated loss of approximately $20,459 million or approximately $22.5 million.

Speaker Change: However, it should be noted that this resolution did not affect the ordinary course of business of the company, its payment capacity, nor its available financing options.

Alejandro: So, this price adjustment positively affects our revenues during the period under analysis, but just for one month. Then, the thermal generation tender process, called TERCONF, was finally cancelled, as it was determined by Resolution 151, issued by the Secretary of Energy on July 8.

Alejandra Diaz Lopez: Promenade values increase 25% since June the 1st of 2024. So this price adjustment affects positively our revenues during the period and the analysis, but just for one month. Then the thermal generation tender process called Terconf was finally cancelled, as it was determined by a resolution of 151 issued by the Secretary of Energy on July the 8th. Finally, there was another price adjustment determined recently by the Secretary of Energy. Although it has no impact on the second quarter figures, it should be noted that a 3% increase on power and energy prices was granted since August 1st by means of Resolution 193.

Speaker Change: Regarding the situation of the Adelaida Hydro operation, on May 17, the Secretary of Energy issued Resolution 70A, by means of which it extended the transition period up to December 28, 2024, as it is allowed in the concession contract.

Alejandra Diaz-Lopez: Then, the thermal generation tender process, called TERCONF, was finally cancelled as it was determined by Resolution 151, issued by the Secretary of Energy on July 8th. Finally, there was another price adjustment recently determined by the Secretary of Energy. Although it has no impact on the second quarter figures, it should be noted that a 3% increase in power and energy prices was granted since August 1st by means of Resolution 193. Continuing with news and relevant facts, we also anticipated in our last call the investment made in the mining industry.

Speaker Change: On June 14, the Secretary of Energy issued Resolution 99, which updated remuneration prices for energy and power sold in the spot market.

Alejandro: Finally, there was another price adjustment determined recently by the Secretary of Energy. Although it has no impact on the second quarter figures, it should be noted that a 3% increase in power and energy prices was granted since August 1st by means of Resolution 193. Continuing with news and relevant facts, we also anticipated in our last call the investment made in the mining industry.

Speaker Change: Promotion values increased 25% since June 1st of 2024.

Speaker Change: So, this price adjustment affects positively our revenues during the period under analysis, but just for one month.

Speaker Change: Then, the thermal generation tender process, called TERCONF, was finally cancelled as it was determined by Resolution 151, issued by the Secretary of Energy on July the 8th.

Alejandra Diaz Lopez: Continuing with news and relevant facts, we have also anticipated in our last call that the investment may be in the mining industry. Let me recall that on April the 22nd our subsidiary Pro-Enair entered into a common shares subscription agreement with our Silver Resource Corporation. By means of which, it was granted with a 4% interest in the share capital of the aforementioned company, which is the owner of the silver goal project Diavlicious located in the north-east region of Argentina. With regards to the investment project currently in execution, let me tell you in the case of San Carlos Solar Farm, construction agreements with Shanghai Electric Power Construction Company were sign of March the 27th and works began on July the 31st, being April of 2025, the COD.

Speaker Change: Finally, there was another price adjustment determined recently by the Secretary of Energy.

Alejandra Diaz-Lopez: Let me recall that on April 22nd, our subsidiary Peraner entered into a common shares subscription agreement with Abrasilver Resource Corporation, by means of which it was granted a 4% interest in the share capital of the aforementioned company, which is the owner of the Silver Gold Project de Ableches located in the northeast region of Argentina.

Alejandro: Let me recall that on April 22nd, our subsidiary Paraner entered into a common shares subscription agreement with Abrasilver Resource Corporation, by means of which it was granted a 4% interest in the share capital of the aforementioned company, which is the owner of the Silver Gold Project de Ableches located in the northeast region of Argentina. With regard to the investment project currently in execution, let me tell you that In the case of San Carlos Solar Farm, construction agreements with Shanghai Electric Power Construction Company were signed on March the 27th, and works began on July the 31st, being April of 2025 the COD. As of today, all permits are in place.

Speaker Change: Although it has no impact on the second quarter figures, it should be noted that a 3% increase on power and energy prices was granted since August 1st by means of Resolution 193.

Speaker Change: Thanks for watching, and don't forget to like, share, and subscribe to my channel.

Speaker Change: Continuing with news and relevant facts, we have also anticipated in our last call the investment made in the mining industry.

Alejandra Diaz-Lopez: With regard to the investment project currently in execution, let me tell you that, in the case of San Carlos Solar Farm, construction agreements with Shanghai Electric Power Construction Company were signed on March the 27th, and works began on July the 31st, being April of 2025 the COD. As of today, all permits are in place.

Speaker Change: Let me recall that on April the 22nd, our subsidiary PRONER

Speaker Change: entered into a common shares subscription agreement with Abrasilver Resource Corporation, by means of which it was granted with the 4% interest in the share capital of the aforementioned company.

Alejandra Diaz Lopez: As of today, all permits are in place. Also, equipment is being delivered to Argentina. In the case of Brigadier Lopez Combine Cycle, as you may recall, Central Puerto is going to convert an open cycle thermal power plant with the gas turbine into a combined cycle of thermal power plant with the addition of a steam turbine. The EPC supplier, SACDE, received the notice to proceed on February the 26th of 2024, and the COD is scheduled for October of 2025. As of today, works on the site have already started with the assembly of pipes and wires, communication system, and water intake system.

Speaker Change: which is the owner of the Silver Gold Project de Ablicios, located in the northeast region of Argentina.

Alejandra Diaz-Lopez: Local vendors have already initiated their purchasing process, and the site is being prepared for construction and assembly. Also, equipment is being delivered to Argentina. In the case of Brigadier Lopez combined cycle, as you may recall, Central Puerto is going to convert an open cycle thermal power plant with a gas turbine into a combined cycle of thermal power plant with the addition of a steam turbine. The EPC supplier, SACDE, received the notice to proceed on February the 26th of 2024, and the COD is scheduled for October of 2025. As of today, works on the site have already started, with the assembly of pipes and wires, the communication system, and the water intake system.

Alejandro: Local vendors have already initiated their purchasing process, and the site is being prepared for construction and assembly. Also, equipment is being delivered to Argentina. In the case of Brigadier Lopez combined cycle, as you may recall, Central Puerto is going to convert an open cycle thermal power plant with a gas turbine into a combined cycle of thermal power plant with the addition of a steam turbine. The EPC supplier, SACDE, received the notice to proceed on February the 26th of 2024, and the COD is scheduled for October of 2025. As of today, works on the site have already started, with the assembly of pipes and wires, the communication system, and the water intake system.

Speaker Change: With regards to the investment project currently in execution, let me tell you that, in the case of San Carlos Solar Farm, construction agreements with Shanghai Electric Power Construction Company were a sign of

Speaker Change: March the 27th, and works began on July the 31st.

Speaker Change: being April of 2025 the COD.

Speaker Change: As of today, all permits are in place.

Speaker Change: Local vendors have already initiated their purchasing process and the site is being prepared for construction and assembly. Also, equipment is being delivered to Argentina.

Speaker Change: In the case of Brigadier Lopez Combined Cycle, as you may recall, Central Puerto is going to convert an open cycle thermal power plant with a gas turbine into a combined cycle thermal power plant with the addition of a steam turbine.

Alejandra Diaz Lopez: It is important to notice that both projects are on schedule and on budget.

Alejandro: It is important to notice that both projects are on schedule and on budget. Now, let's skip to the Argentine energy market view of this water, which will be shown on slides 7 and 8. By the end of the second quarter of 2024, the country's installed capacity reached 43,603 MW, which means an increase of 0.5% or 198 MW compared to the 43,405 MW recorded as of June 30, 2023. The variation is a combination of the installation of new power facilities and the addition of capacity adjustment and repowering of power plants that were already in operation.

Alejandra Diaz-Lopez: It is important to notice that both projects are on schedule and on budget. Now, let's skip to the Argentine energy market view of this water, which will be shown on slides 7 and 8. By the end of the second quarter of 2024, the country's installed capacity reached 43,603 megawatts, which means an increase of 0.5% or 198 megawatts compared to the 43,405 megawatts recorded as of June the 30th of 2023. The variation is a combination of the installation of new power facilities and the addition of capacity adjustment and repowering of power plants that were already in operation. The positive variation of 180 MW is decomposed as follows.

Alejandra Diaz Lopez: Now, let's skip to the Argentine energy market picture of this water that will be shown on slide 7 and 8. The variation is a combination of the installation of new power facilities and the addition of capacity, adjustment, and repowering of power plants that were already in operation. The positive variation of 180 megawatts is the composed as follows. We have an increase of 533 megawatts of renewable sources, of which 368 megawatts corresponds to wind farms, 50 megawatts of new power plants installed during the second quarter of 2024. 155 megawatts to solar plants, of which 12 megawatts corresponds to new power plants installed during the second quarter of 2024, and 9 megawatts to buy gas power plants.

Speaker Change: The EPC supplier, SACDE, received the notice to proceed on February the 26th of 2024, and the COD is scheduled for October of 2025.

Alejandra Diaz-Lopez: We have an increase of 533 MW of renewable sources, of which 368 MW corresponds to wind farms. 50 megawatts of new power plants will be installed during the second quarter of 2024. 155 MW for solar plants, of which 12 MW corresponds to new power plants installed during the second quarter of 2024, and 9 MW for biogas power plants. Then we have a decrease of 335 MW in thermal sources, which includes a positive variation of 527 MW of combined cycles and a negative variation of 862 MW of gas and steam turbines and diesel engines. Generation rose 6% during the quarter on a year-over-year basis.

Alejandro: The positive variation of 180 megawatts is decomposed as follows. We have an increase of 533 megawatts of renewable sources, of which 368 megawatts corresponds to wind farms, 50 megawatts of new power plants installed during the second quarter of 2024, 155 megawatts to solar plants, of which 12 megawatts corresponds to new power plants installed during the second quarter of 2024, and 9 megawatts to biogas power plants. Then we have a decrease of 335 MW in thermal sources, which includes a positive variation of 527 MW of combined cycles and a negative variation of 862 MW of gas and steam turbines and diesel engines. Generation rose 6% during the quarter on a year-over-year basis.

Speaker Change: As of today, works on the site have already started, with the assembly of pipes and wires, communication system and water intake system. It is important to notice that both projects are on schedule and on budget.

Speaker Change: Now let's skip to the Argentine energy market picture of this quarter that will be shown on slides 7 and 8.

Speaker Change: By the end of the second quarter of 2024, the country's installed capacity reached 43,603 MW, which means an increase of 0.5% or 198 MW.

Speaker Change: compared to the 43,405 megawatts recorded as of June the 30th of 2023.

Speaker Change: The variation is a combination of the installation of new power facilities and in addition of capacity adjustment and repowering of power plants that were already in operation.

Speaker Change: The positive variation of 198 MW is decomposed as follows.

Alejandra Diaz Lopez: Then we have a decrease of 335 megawatts in thermal sources, which includes a positive variation of 527 megawatts of combined cycles and a negative variation of 862 megawatts of gas and steam turbines and diesel engines. Generation rose 6% during the quarter on a year-of-a-year basis. The growth was basically driven by nuclear and hydro generation. Renewable generation also rose, but on a much smaller scale. Nuclear generation was significantly higher as a result of the rank operation of a Tucha 2 power plan, which was in maintenance shutdown during the first half of 2023. This power plan for some operation in August of 2023.

Speaker Change: We have an increase of 533 megawatts of renewable sources.

Speaker Change: of which 368 MW corresponds to wind farms, 50 MW of new power plants installed during the second quarter of 2024.

Speaker Change: 155 MW to solar plants, of which 12 MW corresponds to new power plants installed during the second quarter of 2024, and 9 MW to biogas power plants.

Alejandra Diaz-Lopez: The growth was basically driven by nuclear and hydro generation. Renewable generation also rose, but on a much smaller scale. Nuclear regeneration was significantly higher as a result of the reincorporation of the Atucha II power plant, which was in maintenance shutdown during the first half of 2023. This power plant resumed operation in August of 2023. Hydrogeneration rate of growth was remarkable, especially in May, with 60% of growth year-over-year due to the outstanding increment in the flow of the river. We have the Uruguay River with a growth rate of 500%, the Limay River with 82% of growth, and the Cochoncura River with a 45% rate of growth.

Alejandro: The growth was basically driven by nuclear and hydro generation. Renewable generation also rose, but on a much smaller scale. Nuclear regeneration was significantly higher as a result of the reincorporation of the Atucha II power plant, which was in maintenance shutdown during the first half of 2023. This power plant resumed operation in August of 2023. Hydrogeneration rate of growth was remarkable, especially in May, with 60% of growth year-over-year due to the outstanding increment in the flow of the river. We have the Uruguay River with a growth rate of 500%, the Limay River with 82% of growth, and the Cochoncura River with a 45% rate of growth.

Speaker Change: Then we have a decrease of 335 megawatts in thermal sources, which includes a positive variation of 227 megawatts of on-line cycles, and a negative variation of 862 megawatts of gas and steam turbines and diesel engines.

Alejandra Diaz Lopez: Hydrogenation rate of flow was remarkable, especially in May, with 60% of growth year over year due to the outstanding increment in the flow of river. We have Uruguay River with the growth of 500%, Delimae River with 82% of growth, and the question could arrive with the 45% rate of growth. The higher supply of nuclear, hydro, and renewables promised a lower formal dispatch, and as a consequence, a lower fuel consumption was considered. 12% decrease was the resistor in equivalent natural gas million cubic meters. Focusing now on the demand, as you can see, electricity demand increased 2% to 33.4 teragot hour compared to 32.9 teragot hour regarded during the second quarter of 2023, which is basically explained by a rise in residential consumption due to weather conditions.

Speaker Change: Generation rose 6% during the quarter on a year-over-year basis. The growth was basically driven by nuclear and hydro generation. Renewable generation also rose but on a much smaller scale.

Speaker Change: Nuclear regeneration was significantly higher as a result of the reincorporation of Atucha II power plant, which was in maintenance shutdown during the first half of 2023.

Alejandro: The higher supply of nuclear, hydro, and renewable energy prompted a lower thermal dispatch, and, as a consequence, a lower fuel consumption was registered. A 12% decrease was registered in equivalent natural gas million cubic meters. Focusing now on the demand, as you can see, electricity demand increased 2% to 33.4 TWh compared to 32.9 TWh recorded during the second quarter of 2023, which is basically explained by a rise in residential consumption due

Alejandra Diaz-Lopez: The higher supply of nuclear, hydro, and renewable energy prompted a lower thermal dispatch, and, as a consequence, a lower fuel consumption was registered. A 12% decrease was registered in equivalent natural gas million cubic meters. Focusing now on the demand, as you can see, electricity demand increased 2% to 33.4 TWh compared to 32.9 TWh recorded during the second quarter of 2023, which is basically explained by a rise in residential consumption due

Speaker Change: This power plant resumed operation in August of 2023.

Speaker Change: Hydrogeneration rate of growth was remarkable, especially in May, with a 60% increase.

Speaker Change: Afrut.

Speaker Change: year over year due to the outstanding increment in the flow of river. We have Uruguay River with a growth of 500%, the Limay River with 82% of growth, and the Cochoncura River with a 45% rate of growth.

Speaker Change: The higher supply of nuclear, hydro, and renewables prompts

Speaker Change: lower thermal dispatch and, as a consequence, a lower fuel consumption was registered. 12% decrease was registered in equivalent natural gas million cubic meters.

Alejandra Diaz Lopez: On average, the temperature was 0.9 degrees lower during the second quarter of 2024, when compared to the same period of last year. May was the coldest month during the second quarter of 2024, with temperatures 3.7 degrees lower than the same month of 2023. Not surprisingly, residential consumption skyrocketed along the single month, increasing 29%. Although the electricity trade balance during the second quarter of 2024 resulted in a net import situation, exports were higher and imports lower during this quarter, vis-à-vis the second quarter of 2023, thus reducing the net import balance.

Alejandro: On average, the temperature was 0.9 degrees lower during the second quarter of 2024 when compared to the same period of last year. May was the coldest month of the second quarter of 2024, with temperatures 3.7 degrees lower than the same month of 2023. Not surprisingly, residential consumption skyrocketed during this single month, increasing 29%.

Alejandra Diaz-Lopez: On average, the temperature was 0.9 degrees lower during the second quarter of 2024 when compared to the same period of last year. May was the coldest month of the second quarter of 2024, with temperatures 3.7 degrees lower than the same month of 2023. Not surprisingly, residential consumption skyrocketed during this single month, increasing 29%.

Speaker Change: Focusing now on the demand, as you can see, electricity demand increased 2% to 33.4%.

Speaker Change: Terragot Hour, compared to 32.9 Terragot Hour, recorded during the second quarter of 2023, which is basically explained by a rise in residential consumption due to weather conditions.

Alejandra Diaz-Lopez: Although the electricity trade balance during the second quarter of 2024 resulted in a net import situation, exports were higher and imports lower during this quarter vis-a-vis the second quarter of 2023, thus reducing the net import balance. We now go to slide 9, our key operating indicators for the quarter. We can see that energy generated by Central Puerto rose 5% to 4,985 gigawatt-hour compared to 4,000 gigawatt-hour. 1762 gigawatt hours during the second quarter of 2023.

Alejandro: Although the electricity trade balance during the second quarter of 2024 resulted in a net import situation, exports were higher and imports lower during this quarter vis-a-vis the second quarter of 2023, thus reducing the net import balance. Now go to slide 9, our key operating indicators for the quarter. We can see that energy generated by Central Puerto rose 5% to 4,985 gigawatt-hour compared to 4,000 gigawatt-hour.

Speaker Change: On average, the temperature was

Speaker Change: 0.9 grades lower during the second quarter of 2024.

Speaker Change: when compared to the same period of last year. May was the coldest month during the second quarter of 2024, with temperatures 3.7 degrees lower than the same month of 2023.

Alejandra Diaz Lopez: We now go to slide 9 to our key operating indicators for the quarter. We can see that energy generated by central quarter rose 5% to 4,985 gigawatt hour, compared to 4,762 gigawatt hour during the second quarter of 2023. In the second quarter of 2024, hydro energy generation from Pia de la Gila increased 94% as compared with the second quarter of 2023, reaching 978 gigawatt hour as a direct result of higher levels of water available for generation, which was a direct consequence of higher flow of river, as we have recently explained. With regards to renewables, energy generation increased 5% in the second quarter of 2024, compared to the second quarter of 2023, being basically explained by the 48-hour generated by one Israel solar farm, acquired in October of 2023.

Speaker Change: Not surprisingly, residential consumption skyrocketed along this single month, increasing 29%.

Speaker Change: Although the electricity trade balance

Alejandro: 1762 gigawatt hours during the second quarter of 2023. In the second quarter of 2024, hydro energy generation from Piedra del guila increased 94 percent as compared with the second quarter of 2023, reaching 978 gigawatt hours as a direct result of higher levels of water available for generation, which was a direct consequence of a higher flow of the river, as we have recently explained. With regard to renewable energy generation, energy generation increased 5% in the second quarter of 2024 compared to the second quarter of 2023, being basically explained by the 48 gigawatt hour generated by the Juan Isuil solar farm acquired in October of 2023. Speaking specifically of wind generation, it decreased almost 8% or 30 GWh, reaching 354 GWh during the second quarter of 2024.

Speaker Change: During the second quarter of 2024 resulted in a net import situation, exports were higher and imports lower.

Alejandra Diaz-Lopez: In the second quarter of 2024, hydro energy generation from Piedra del guila increased 94% as compared with the second quarter of 2023, reaching 978 GWh as a direct result of higher levels of water available for generation, which was a direct consequence of a higher flow of the river, as we have recently explained. With regard to renewables, energy generation increased 5% in the second quarter of 2024 compared to the second quarter of 2023, being basically explained by the 48 gigawatt hours generated by the Juan Isuil solar farm acquired in October of 2023.

Speaker Change: during this quarter, vis-a-vis the second quarter of 2023, thus reducing the net import balance.

Speaker Change: We now go to slide 9 to our key operating indicators for the quarter.

Speaker Change: We can see that energy generated by Central Puerto rose 5% to 4,985 GWh, compared to 4,980 GWh.

Speaker Change: 1762 gigawatt hour during the second quarter of 2023

Speaker Change: In the second quarter of 2024, hydro energy generation from Piedra del Águila increased 94% as compared with the second quarter of 2023.

Alejandra Diaz Lopez: Speaking specifically of wind generation, it decreased almost 8% or 30-year-old hour, reaching 354-year-old hour during the second quarter of 2024. This is primarily due to the storm that hit by a blanca in December of 2023, which impacted La Castellana too. Generation from La Castellana 1 was also lower due to maintenance of works carrying on some blades. Regarding thermal generation, it decreased 7% in the second quarter of 2024, compared to the second quarter of 2023. Basically, as a result of lower dispatch of some units, which was a direct consequence of higher hydro and nuclear aggregate supply in the system, as we explained earlier.

Alejandra Diaz-Lopez: Speaking specifically of wind generation, it decreased almost 8% or 30 GWh, reaching 354 GWh during the second quarter of 2024. This is primarily due to the storm that hit Vallablanca in December of 2023, which impacted La Castellana, too.

Speaker Change: reaching 978 gigawatt hour as a direct result of higher levels of water available for generation which was a direct consequence of higher flow of river as we have recently explained.

Alejandro: This is primarily due to the storm that hit Vallablanca in December of 2023, which impacted La Castellana, too. Generation from La Castellana I was also lowered due to maintenance works, carry-ons, and blades. Regarding thermal generation, it decreased 7% in the second quarter of 2024 compared to the second quarter of 2023, basically as a result of lower dispatch of some units, which was a direct consequence of higher hydro and nuclear aggregate supply in the system, as we explained earlier.

Alejandra Diaz-Lopez: Generation from La Castellana I was also lower due to maintenance works, carry-ons, and blades. Regarding thermal generation, it decreased 7% in the second quarter of 2024 compared to the second quarter of 2023, basically as a result of lower dispatch of some units, which was a direct consequence of higher hydro and nuclear aggregate supply in the system, as we explained earlier. Regardless of the lower dispatch, it should be highlighted the good availability figures for the quarter, both against the market average and against Central Puerto's own metrics for the second quarter of 2023.

Alejandro: Regardless of the lower dispatch, it should be highlighted the good availability figures for the quarter, both against the market average and against Central Puerto's own metrics for the second quarter of 2023. Despite the lower thermal dispatch during this quarter, I mean the second quarter of 2024, for the whole system and Central Puerto, it should be noted the higher generation of the Buenos Aires combined cycle as a consequence of the maintenance program carried out last year. Now, let's move to our revenue breakdown.

Alejandra Diaz Lopez: Regardless, the lower dispatch, it should be highlighted the good availability figures for the quarter, both against the market average and against Central Puerto's own metrics for the second quarter of 2020. Despite the lower thermal dispatch during this quarter, I mean the second quarter of 2024, for the whole system and Central Puerto, it should be noted the higher generation of Buenos Aires combined cycle as the consequence of the maintenance program carry out last year.

Speaker Change: Turning to Asia from like I said as you know one was also lower due to maintenance works Kerry on some blades.

Speaker Change: Regarding the thermal generation it decreased 7% in the second water of <unk> 24, compared to the second quarter of 2023.

Alejandra Diaz-Lopez: Despite the lower thermal dispatch during this quarter, I mean the second quarter of 2024, for the whole system and Central Puerto, it should be noted the higher generation of Buenos Aires combined cycle as a consequence of the maintenance program carried out last year. Now, let's move to our revenue breakdown.

Speaker Change: Basically as a result of lower dispatch of some units, which was a direct consequence of higher hydro and nuclear aggregate supply in the system as we explained earlier.

Alejandra Diaz Lopez: Now, let's move to our revenues breakdown. As you can see on slide 10, this amounted to 168 million dollars in the quarter, as compared to 147 million dollars in the same period of 2023. It should be noted that the gap between inflation and devaluation in the period has positively affected the second quarter of 2024 figures at the non-cash level. Due to the company's accounting methodology and the conversion into dollars using the end of the period of future exchange rate, thus making the comparison with the second quarter of 2023 more complex to analyze. Hence, having in mind this effect, the variation in revenues is a consequence mainly of.

Speaker Change: Regardless.

Speaker Change: The lower dispatch it should been highlighted the good availability figures for the quarter.

Alejandra Diaz-Lopez: As you can see on slide 10, this amounted to $168 million in the quarter, as compared to $147 million in the same period of 2023. It should be noted that the gap between inflation and devaluation in the period has positively affected the second quarter of 2024 figures at the non-cash level due to the company's accounting methodology and the conversion into dollars using the end-of-period official exchange rate, thus making the comparison with the second quarter of 2023 more complex to analyze.

Alejandro: As you can see on slide 10, this amounted to $168 million in the quarter, as compared to $147 million in the same period of 2023. It should be noted that the gap between inflation and devaluation in the period has positively affected the second quarter of 2024 figures at the non-cash level due to the company's accounting methodology and the conversion into dollars using the end-of-period official exchange rate, thus making the comparison with the second quarter of 2023 more complex to analyze.

Speaker Change: Both against the market average and against since our board own metrics for the second quarter of 'twenty three.

Speaker Change: Despite the lower thermal dispatch during this quarter I mean, the second quarter up 2024 part of the whole system and since our part though it should be no did the higher generation.

Speaker Change: <unk> combined cycle as a consequence of the maintenance program Carryout last year.

Speaker Change: Yeah.

Speaker Change: Now, let's move to our revenues breakdown.

As you can see on slide 10, this amounted to $168 million in the quarter as compared to $147 million in the same period upstream D train three.

Alejandro: Hence, having in mind this effect, the variation in revenues is mainly a 14% or $10 million increase in spot sales, driven by a higher dispatch of the Pira de la Hida hydropower plant, higher availability of some thermal units, especially in Central Costanera, and also higher generation from the Buenos Aires combined cycle. An 8% or $5 million increase in sales under contract, mainly explained by the recent acquisition of the solar farm Juan y Suil and higher sales of cogeneration units. Basically, we are speaking of the Lujan de Cuyo Facility.

Alejandra Diaz-Lopez: Hence, having in mind this effect, the variation in revenues is a consequence mainly of a 14% or $10 million increase in spot sales driven by a higher dispatch of the Pira del Aguila hydropower plant, higher availability of some thermal units, especially in Central Costanera, and also higher generation from the Buenos Aires combined cycle. An 8% or $5 million increase in sales under contract, mainly explained by the recent acquisition of the solar farm Juan y Suil and higher sales of cogeneration units. Basically, we are speaking of the Lujan de Cuyo Facility.

Alejandra Diaz Lopez: A 14% or 10 million dollar increase in spot sales driven by a higher dispatch of Pira da Laida Hydro Power Plant, higher availability of some thermal units, especially in Central Cotanera, and also higher generation from Buenos Aires combined cycle. And 8% or 5 million dollar increase in sales under contract, mainly explained by the recent acquisition of the solar farm, Juan y Suil, and higher sales of cogeneration units, basically we're speaking of Luja de Cusha facility. Sales of wind farms were lower due to lower wind generation. As we mentioned before, Lancasterjana 2 was hit by a tricer in December of 2023, and there was maintenance work carry on some blades in Lancasterjana 1.

Speaker Change: It should be noted that the gap between inflation and devaluation in the period has positively affected the second quarter of 'twenty 'twenty four figures at the noncash level you.

Speaker Change: You do the company's accounting methodology and the conversion into dollars using the end of the period official exchange rate.

Speaker Change: Thus, making the comparison with the second quarter of 2023 more complex to analyze.

Speaker Change: Hence having in mind this effect the variation in revenues is a consequence, mainly off.

Alejandro: Sales of wind farms were lower due to lower wind generation. As we mentioned before, La Castellana 2 was hit by a thrister in December of 2023, and there was maintenance work carried out on some blades in La Castellana 1.

Alejandra Diaz-Lopez: Sales of wind farms were lower due to lower wind generation. As we mentioned before, La Castellana 2 was hit by a thrister in December of 2023, and there was maintenance work carried out on some blades in La Castellana 1.

Speaker Change: 14% or $10 million increase in spot sales driven by higher dispatch of beer that allow you to hydropower plant.

Speaker Change: Higher availability of some thermal units, especially in central costs, I Nader and also higher generation from one month hiatus combined cycle.

Alejandra Diaz Lopez: Finally, there was a 42 percent or 3 million dollar increase in steam sales driven by basically higher production levels in Lufan the Cushion Facility, which is basically a consequence of higher availability of units and a higher demand from YPF.

Alejandro: Finally, there was a 42% or $3 million increase in steam sales driven by basically higher production levels in the Lujan de Cuyo Facility, which is basically a consequence of higher availability of units and higher demand from YPF. On slide 11, we can see the dynamic of our adjusted EVGA. During the second quarter of 2024, the group's EVDA amounted to $46 million, shrinking 27% or $17 million when compared to the $63 million in the same quarter of 2023.

Alejandra Diaz-Lopez: Finally, there was a 42% or $3 million increase in steam sales driven by basically higher production levels in the Lujan de Cuyo Facility, which is basically a consequence of higher availability of units and higher demand from YPF. On slide 11, we can see the dynamic of our adjusted EVGA. During the second quarter of 2024, the group's EVDA amounted to $46 million, shrinking 27% or $17 million when compared to the $63 million in the same quarter of 2023.

Speaker Change: And 8% or $5 million increase in sales on their contract mainly explained by the recent acquisition of the solar farm when he soil and higher sales of cogeneration unit basically we're speaking of Johan the Guizhou facility.

Alejandra Diaz Lopez: On slide 11, we can see the dynamic of our adjusted EVDA. During the second quarter of 2024, the group's adjusted EVDA amounted to 46 million dollars, shrinking 27% or 17 million dollars when compared to the 63 million dollars in the same quarter of 2023. When analyzing the adjusted EVDA, we can observe that the variation is mainly explained by the previously stated higher aggregate sales driven by spot sales and sales from the contract, and a positive non-gash effect on the gap between currency evaluation and inflation. Then we have a 4 percent or 2 million dollars decrease in cost of sales, explained basically by a reduction of some production cost, compensations to employees, consumption of materials and spur parts, and forestry and forest protection services expenses, being or partially upset by a negative non-gash effect on the gap between currency evaluation and inflation.

Speaker Change: Sales of our wind farms were lower due to lower wind generation asset.

Speaker Change: We mentioned with for lack of fish Anna Chew was hit my Twister in December of 'twenty, two 'twenty, three and there was maintenance or carry on some blades in there like I said you know what.

Speaker Change: Finally, there was a four 2% or $3 million increase in steam sales driven by basically higher production levels and the question of affinity which is basically a consequence of higher availability of units and higher demand from Y P. F.

Alejandro: When analyzing the adjusted EVDA, we can observe that the variation is mainly explained by the previously stated higher aggregate sales driven by spot sales and sales from the contract and a positive non-cash effect on the gap between currency devaluation and inflation. Then, we have a 4% or $2 million decrease in cost of sales, explained basically by a reduction in some production costs, compensation to employees, consumption of materials and spare parts, and forestry and forest protection services expenses, being all partially offset by a negative non-cash effect on the gap between currency devaluation and inflation. H-E-N-A decreased 9% or $2 million mainly due to lower fees and compensation for services and lower taxes, again being partially offset by a negative non-cash effect on the gap between currency devaluation and inflation.

Alejandra Diaz-Lopez: When analyzing the adjusted EVDA, we can observe that the variation is mainly explained by the previously stated higher aggregate sales driven by spot sales and sales from the contract and a positive non-cash effect on the gap between currency devaluation and inflation. Then we have a 4% or $2 million decrease in cost of sales, explained basically by a reduction in some production costs, compensation to employees, consumption of materials and spare parts, and forestry and forest production services expenses, being all partially offset by a negative non-cash effect on the gap between currency devaluation and inflation.

Speaker Change: On slide 11, we can see the dynamic of our adjusted EBITDA.

Speaker Change: During the second quarter of 'twenty 'twenty four the group's adjusted EBITDA amounted to $46 million shrinking, 27% or $17 million when compared to the $63 million in the same quarter of 2023.

Speaker Change: When analyzing the adjusted EBITDA, we can observe.

Alejandra Diaz-Lopez: H-E-N-A decreased 9% or $2 million mainly due to lower fees and compensation for services and lower taxes, again being partially offset by a negative non-cash effect on the gap between currency devaluation and inflation. Finally, other operating results net in the second quarter of 2024 were lower than the second quarter of 2023 figures by 365% or $42 million, basically as a consequence of the impact of Resolution 58. There was also lower interest from clients and a lower positive effect difference and a negative non-cash effect on the gap between currency devaluation and inflation.

Alejandra Diaz Lopez: SGNA decrease 9 percent or 2 million dollars, mainly by lower fees and compensation for services and lower taxes. Again, being partially upset by a negative non-gash effect on the gap between currency evaluation and inflation. Finally, other operating results net in the second quarter of 2024 were lower than the second quarter of 2023 by 365 percent or 42 million dollars, basically as a consequence of the impact of the resolution 58. There were also lower interest from client and lower positive effect difference and a negative non-gash effect on the gap between currency evaluation and inflation.

Speaker Change: That the variation is mainly explained by the previously stated higher aggregate sales driven by a spot sales and sales from the contract and the positive noncash effect on the gap between currency devaluation and inflation.

Speaker Change: Then we have a 4% or $2 million decrease in cost of sales explained basically by a reduction of sand production cost compensation to employees.

Alejandro: Finally, other operating results net in the second quarter of 2024 were lower than the second quarter of 2023 figures by 365% or $42 million, basically as a consequence of the impact of Resolution 58. There was also lower interest from clients and lower positive effect differences and a negative non-cash effect on the gap between currency devaluation and inflation. Moving to the next slide, the consolidated net income. During the second quarter of 2024, Central Puerto's net income amounted to $8 million, decreasing 54% or $9 million on a year-over-year basis. The net income was positively affected by non-cash effects, including results generated by the change in purchasing power of the currency, variation in biological assets, and lower DNA.

Speaker Change: Samsung of materials on the spare parts and forestry and Forest protection services expenses.

Bean or partially upset my and they've got they've noncash effect on the gap between currency devaluation inflation.

Speaker Change: SG&A decreased 9% or $2 million, mainly by lower fees and compensation for services, although our taxes again being partially upset by a negative noncash effects on the gap between currency devaluation and inflation.

Alejandra Diaz Lopez: Moving to the next slide, the consolidated net income. During the second quarter of 2024, central board of net income amounted to 8 million dollars, decreasing 54 percent, or 9 million dollars, on a year-over-year basis. The net income was positively affected by non-gash effects, including results generated by the change in purchasing power of the currency, variation in biological assets, and lower DNA. These items were practically upset by lower funny effects difference and interest. Then we have net financial results, which decrease $1 million year-over-year, basically by lower interest earn and lower variation in the four-value of financial assets.

Alejandra Diaz-Lopez: Moving to the next slide, the consolidated net income. During the second quarter of 2024, Central Puerto's net income amounted to $8 million, decreasing 54% or $9 million on a year-over-year basis. The net income was positively affected by non-cash effects, including results generated by the change in purchasing power of the currency, variation in biological assets, and lower DNA. However, these items were practically offset by lower FONI FX difference and interest. Then we have net financial results, which decreased $1 million year over year basically because of lower interest earned and lower variation in the value of financial assets. These items were partially upset by lower foreign exchange difference on financial liabilities, lower bank commissions, and higher share of the profit of associates.

Speaker Change: Finally, other operating results net in the second quarter of 'twenty 'twenty four were lower than the second quarter of 2020, because my 365% or $42 million basically ethicon sequins off the impact of the resolution 58.

Unknown Executive: Good morning, ladies and gentlemen. Welcome to Central Puerto's second quarter, 2024 earnings webcast. All participants will be in a listening mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's 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 relations support section on the company's corporate website at www.centralporto.com.

Speaker Change: There were also lower interest from clients.

Speaker Change: Lower positive FX difference and a negative non cash effect on that.

Alejandro: These items were practically offset by lower FONI FX difference and interest. Then we have net financial results, which decrease $1 million year over year, basically due to lower interest earned and lower variation in the fair value of financial assets. These items were partially offset by lower foreign exchange difference on financial liabilities, lower bank commissions, and higher share of the profit of associates.

Speaker Change: Between currency devaluation and inflation.

Speaker Change: Yes.

Moving to the next slide the consolidated net income.

Speaker Change: During the second quarter of 2024 central part us net income amounted to $8 million, decreasing 54% or $9 million on a year over year basis.

Unknown Executive: In addition, a replay of today's call may be accessed by accessing the webcast link at the same section of Central Puerto's website. Before we proceed, please be aware that all financial figures we are prepared were prepared in accordance with IFRS and were converted from Argentine pesos to US dollars for comparison purposes only. The exchange rate used to convert Argentine pesos to US dollars was the reference exchange rate reported by the central bank for US dollars for the end of each period.

Alejandra Diaz Lopez: These items were partially upset by lower foreign exchange difference on financial liabilities, lower bank commissions, and higher share of the profit of associates.

Speaker Change: The net income was positively affected by noncash effects, including results generated by the change in purchasing power of the currency.

Alejandra Diaz Lopez: Finally, on slide 13, we have the cash flow dynamic during the six months of 2024. Net cash provided by operating activities was $67 million during the six months of 2024. This amount is mainly explained by higher income before income tax for the period and higher interest and from clients being or partially upset by tax payments. Then the net cash used by investing activities was $13 million during the first six months of 2024. This amount is basically explained by the CapEx allocated to St. Carlos and Brigadier Lopez projects being partially upset by the sale of some financial assets.

Alejandra Diaz-Lopez: Finally, on slide 13, we have the cash flow dynamic during the sixth month of 2024. Net cash provided by operating activities was $67 million during the sixth month of 2024. This amount is mainly explained by higher income before income tax for the period and higher interest earned from clients being partially offset by tax payments. Then the net cash used by investing activities was $13 million during the first six months of 2024.

Alejandro: Finally, on slide 13, we have the cash flow dynamic during the sixth month of 2024. Net cash provided by operating activities was $67 million during the sixth month of 2024. This amount is mainly explained by higher income before income tax for the period and higher interest earned from clients being partially offset by tax payments.

Speaker Change: Radiation in a buy unless you've got assets and lower DNA.

Speaker Change: These items were practically upset by lower funny ethics difference and interest.

Alejandra Diaz-Lopez: This amount is basically explained by the capex allocated to the San Carlos and Brigadier Lopez projects being partially offset by the sale of some financial assets. Finally, financing cash flow was negative by 66 million dollars during the first six months of 2024. This is basically the result of long-term long repayments and interest payments, dividend payments being or partially offset by a lower bank and investment account overdraft and long-term long disbursements. Consequently, our gas position as of June the 30th of 2024 amounted to $5 million. If financial assets are included, our total current liquidity amounts to $158 million. With this, I conclude the presentation, and now we invite you to ask any questions.

Speaker Change: Dan we have net financial results, which decreased $1 million year over year basically by lower interest.

Unknown Executive: The information presented in US dollars is for convenience of the reader only and you should not consider these translations to be representations that the Argentine peso amounts actually represent these US dollar amounts or could be converted into US dollars at the rate indicated. Finally, it is worth noting that the financial statements for the second quarter ended on June 30, 2024 include the effects of the inflation adjustments. Also, please take into consideration that certain statements made by the company during this conference call and answer your questions may include forward-looking statements which are subject to risks and uncertainties that could cause actual results to be materially different from the expectations contemplated by industry remarks.

Speaker Change: And lower body Asian in there for Baidu, our financial assets.

These items were partially upset by lower foreign exchange difference on financial liabilities lower commissions.

Alejandro: Then, the net cash used by investing activities was $13 million during the first six months of 2024. This amount is basically explained by the capex allocated to the San Carlos and Brigadier Lopez projects being partially offset by the sale of some financial assets. Finally, financing cash flow was negative by 66 million dollars during the first six months of 2024.

Speaker Change: Commissions and higher share of the profit of associates.

Speaker Change: Okay.

Speaker Change: Finally on slide 13, we have the cash flow dynamic during the six months of 'twenty 'twenty four.

Alejandra Diaz Lopez: Finally, financing cash flow was negative in $66 million during the first six months of 2024. This is basically the result of long-term long repayments and interest payments, dividends payment, being or partially upset by lower bank and investment account overdraft and long-term long disbursement. Consequently, our cash position, as of June the 30th of 2024, amounted to $5 million. If financial assets are included, our total current liquidity amounts to $158 million.

Speaker Change: Net cash provided by operating activities was $67 million during the six months of 'twenty 'twenty four.

Alejandro: This is basically the result of long-term long repayments and interest payments, dividend payments being or partially offset by a lower bank and investment account overdraft and long-term long disbursements. Consequently, our gas position as of June the 30th of 2024 amounted to $5 million. If financial assets are included, our total current liquidity amounts to $158 million.

Unknown Executive: Thus, we refer you to the forward-looking statements section of our earnings release and recent filings with the FEC. Central Puerto assumes no obligation to update forward-looking statements except as required under applicable securities laws. To follow the discussion better, please download the webcast presentation available on the company's website. Please be aware that some of the numbers mentioned during the call may be rounded to simplify discussion.

Speaker Change: Amount is mainly explained by higher income before income tax for the period.

Speaker Change: Higher interest and from clients or partially upset by tax payments.

Speaker Change: Then the net cash used by investing activities was <unk>.

Speaker Change: $13 million during the first six months of 'twenty 'twenty four.

Speaker Change: Amount is basically explained by the Capex allocated to San Carlos Somebody got El Abra project being partially offset by the sale of sound financial assets.

Unknown Executive: On the call today from central Puerto is Fernando Bonnet, Chief Executive Officer and Rike Toranio, Chief Financial Officer and Alejandra Diaz Lopez, Corporate Finance and Investor Relations Coordinator and now I will turn the call over to Alejandra Diaz Lopez. Please Alejandra, you may begin. Thank you very much and good morning to you all. Thank you for joining us today on our earnings presentation where our management team from Buenos Aires, Argentina is going to comment on our financial results of the second quarter of 2024. I would like to take a moment to review today's agenda.

Alejandro: With this, I conclude the presentation, and now we invite you to ask any questions to our team. Thank you very much for your attention. We will now begin the question and answer session. To ask a question, you may press Starkey, then one on your touch-tone phone.

Alejandra Diaz Lopez: With this, I conclude the presentation, and now we invite you to ask any questions to our team. Thank you very much for your attention.

Speaker Change: Finally financing cash flow was negative in $66 million during the first six months of 'twenty 'twenty four.

Unknown Executive: We will now begin the question and answer session. To ask a question, you may press the star key, then one on your touch-tone phone. If you were using a speaker phone, please pick up your handset before pressing the keys. To withdraw your question, please press star, then two. Once again, that's star one. If you wish to ask a question today.

Operator: We will now begin the question and answer session. To ask a question, you may press the Star key, then 1 on your touch-tone phone. If you are using a speakerphone, please pick up your handset before pressing the keys.

Speaker Change: It is basically the result of a long term long repayments and interest payments dividend payments.

Speaker Change: Being or partially upset by lower bank and investment account overdraft and along down along his markman.

Operator: If you are using a speakerphone, please pick up your handset before pressing the button. Please draw your question. Please press the star, then down. Again, that's star one.

Alejandra Diaz Lopez: Thank you for joining us today on our earnings presentation where our management team from Buenos Aires, Argentina is going to comment on our financial results of the second quarter of 2024. I would like to take a moment to review today's agenda. I will begin the presentation by addressing shortly the main figures of the Then I will show an overview of the Argentine Energy sector moving afterwards to our operational and financial results.

Speaker Change: Consequently, our gas position as option the third death of 'twenty 'twenty four amounted to $5 million.

Operator: To withdraw your question, please press star, then 2. Once again, that's star one if you wish to ask a question today. At this time, we will pause momentarily to assemble our roster. And the first question today is coming from Martin Arancet from Balance Capital. Martin, your line is live.

Martin Arancet: At this time, we will pause momentarily to assemble or roster. The first question today is coming from Martin Arleset from Balance Capital.

Operator: We will pause momentarily to assemble. The first question today is coming from... Martin Arancet from Balance Capital. Hi, hello.

Speaker Change: <unk> financial assets are included our total current liquidity amounted to $158 million.

Alejandra Diaz Lopez: I will begin the presentation by addressing shortly the main figures of the Then I will show an overview of the Argentine Energy sector moving afterwards to our operational and financial results. Finally, at the end of the presentation, we will be happy to address any question you may have.

Martin Arancet: Martin, your line is live. Hi, well, thank you for the presentation. I have three questions, and I would like to run them one by one if that's okay.

Speaker Change: With this I conclude the presentation and now we invite you to ask any question.

Martin Arancet: Hi, hello. Thank you for the presentation. I have three questions, and I would like to run them one by one if that's okay.

Martin Arancet: First, thank you for the presentation. I have three questions, and I would like to run them one by one if that's okay.

Speaker Change: To our team.

Bo: Thank you Bo to match for your attention.

Speaker Change: We will now begin the question and answer session.

Martin Arancet: The first one is probably recent, so I don't know if you might have an answer, but last Friday the government issued a resolution to auction again some hydro plants, including Piedra del Aguila, but to privatize them. So apparently, you will have control of the asset until the end of 2024, after which there should be a transition period to the new owner. I was wondering what you think about this privatization process, if you are interested in participating in Piedra de la Isla or maybe another hydro plant, and also if you consider that being the current operator of Piedra de la Isla gives you an advantage if you choose to participate.

Unknown Executive: The first one is probably recent, so I don't know if you might have an answer, but last Friday the government issued a resolution to auction off some hydro plants, including Piedra del Aguila, but to privatize them. So apparently, you will have control of the asset until the end of 2024, after which there should be a transition period to the new owner. I was wondering what you think about this privatization process, if you are interested in participating in the privatization process for Piedra de Laila or maybe another hydro plant, and also if you consider that being the current operator of Piedra de Laila gives you an advantage if you choose to participate.

Fernando Bonnet: The first one probably is recent, so I don't know if you might have an answer, but last Friday, the government issued a resolution to auction again some hydroplants, including Pirae Lailla, but to prioritize them. So apparently, you will have the control of the asset until the end of 2024. After which there should be a transition period to the new owner, I was wondering what you think about this privatization process if you are interested in participating probably for Piraelao or maybe another hydro plant and also if you consider that being the current operator of Piraelao gives you an advantage if you choose to participate.

Speaker Change: Ask a question you May press.

Alejandra Diaz Lopez: Finally, at the end of the presentation, we will be happy to address any question you may have. Before going into a more exhaustive analysis of our financial and operational results, let me briefly review Central Puerto's main figures for the second quarter of 2024. The group's install capacity is 6,703 megawatts, an energy generation amounted to 4,985 Gigao hours during the second quarter of 2024, increasing 5% year-over-year. So with these figures, Central Puerto keeps its leading position as a private power generation company, both in terms of install capacity and energy generation through a well-diversified portfolio of asset and power generation technologies.

Speaker Change: The Starkey then one on your Touchtone phone.

Speaker Change: If you were using a speakerphone please pick up your handset before pressing the keys to withdraw your question. Please press Star then two.

Alejandra Diaz Lopez: Before going into a more exhaustive analysis of our financial and operational results, let me briefly review Central Puerto's main figures for the second quarter of 2024. The group's install capacity is 6,703 megawatts, an energy generation amounted to 4,985 Gigao hours during the second quarter of 2024, increasing 5% year-over-year. So with these figures, Central Puerto keeps its leading position as a private power generation company, both in terms of install capacity and energy generation through a well-diversified portfolio of asset and power generation technologies.

Speaker Change: Once again Thats Star one if you wish to ask a question today at this time, we will pause momentarily to assemble our roster.

Speaker Change: And the first question today is coming from Martin.

Arnold: Arnold set from balanced capital.

Martin Arnold: Your line is live.

Speaker Change: Hi, well gross.

Martin Arnold: Thank you for the presentation.

Martin Arnold: I have three questions and I will like to run them one by one if that's okay.

Speaker Change: The first one we're always Russo so I don't know if you like someone else or bad.

Fernando Bonnet: This is a third one, okay, thank you Martin for your question. In fact, as you mentioned, the government may be an extension or use all the driving that is establishing the contract transition period and the additional year award was until December 24, 2024, and today the government issued a new decree establishing an additional extension going from December 2024 for Piraelao to December 2025. So we will be the operators for Piraelao until December 2025. There are some in the decree establish some reduction in that period they perform the bidding process. You mentioned a new bidding process for a new 30 years concession before that in December 2025. They could reduce 90 days that period, but if they cannot make the perform the process, we will be operating the hydro until December 2025. Of course, as you mentioned, we are interested in continuing participating in that bidding process, a new bidding process for half and another 30 years period for Piraelao. The decree doesn't establish the process itself; they only call the Secretary of Energy to start the process and to start the process in 180 days, but it doesn't establish how we do the process with how we do the intervention or the prices for these new concession periods would be a market price, so it would be a PPA, the Redwood, the Hydro. So we don't know yet the details and we need to wait until you see the details how it would be that new concession period. As you know, the actual concession period was like a challenging because the establish a market price is at the beginning and then after seven years of market prices we see a completely controlled price is going down and the concession was not the one that we imagine at the beginning. So for the new period and how it would be our participation in this new process, we need to see the details about the remuneration and all the details about this new action.

Last Friday, the government issued a resolution to auction again, some hydro plants.

Unknown Executive: This is the third one, okay. Thank you, Martin, for your question. In fact, as you mentioned, the government made an extension or used all the timing that is... establishing the contract transition period and the year award was until December 24th. And today, the government issued a new decree establishing an additional extension going from December 2024 for PRL-IGLA to December 2025. So we will be the operators for PRL-IGLA until December 2025

Martin Arancet: Thank you Martin for your question; in fact, as you mentioned, the government may be an extension or use all the timing that is required. Establishing the contract on the session period, and the additional, the year award was until December 24.

Speaker Change: Leila.

Speaker Change: But to prioritize them.

Speaker Change: So I believe you will have the control of the asset until the end of 2004.

Alejandra Diaz Lopez: Regarding our financial results, it should be noted that after the sharp devaluation that happened on December of 2023, the exchange rate kept almost flat during the first six months of 2024, while inflation, due decreasing since December of 2023, was significantly higher. This dynamic generated inflation in dollars in Argentina. Due to Central Puerto's accounting methodology, all items in pesos must be adjusted for inflation to the end of the quarter, local currency. While the company reports its results in dollars by converting them at the end of the period official exchange rate, I mean the so-called Central Bank, a 3500 exchange rate.

Speaker Change: After which there should be a transition to the new owner.

Speaker Change: I was wondering what do you think about this reorganization process. If you are interested in participating probably for butadiene now or maybe in other hydro plant.

Unknown Executive: 2024, and today the government issued a new decree establishing an additional extension going from December 2024 for PRL-AGILA to December 2025. So we will be the operators for PRL-AGILA until December 2025. There are some in the decree that establish some reduction in that period if they perform the bidding process.

Speaker Change: And also if you go see or that being the current operator, if you gives you an advantage.

If you choose to participate.

Unknown Executive: There are some in the decree that establish some reduction in that period if they perform the bidding process. You mentioned a new bidding process for a new 30 years' concession, and before that, in December 2025. They could reduce that period by 90 days, that period, but if they cannot make the, perform the process, we will be operating the hydro until December 2025. And, of course, as you mentioned, we are interested in continuing to participate in that process, the new bidding process, for HAB and another 30 years for Piedra de la Isla.

Speaker Change: Thank you Mark for your question.

Speaker Change: In fact.

Speaker Change: The government.

Unknown Executive: You mentioned a new bidding process for a new 30 years concession, and before that, in December 2025, they could reduce that period by 90 days. But if they cannot make the process, we will be operating the hydro until December 2021. And of course, as you mentioned, we are interested in continuing to participate in that bidding process, the new bidding process, for HAB and another 30 years' period for PIRELA-ILA. The decree doesn't establish...

John: Maybe things John.

Speaker Change: All good.

Speaker Change: Yes.

Speaker Change: Establishing the contract transition period.

Alejandra Diaz Lopez: This causes a non-cash impact that affects positively or negatively as appropriate our financial metrics. Revenue for the second quarter of 2024, amounted to $168 million, increasing 15% year-over-year compared to the second quarter of 2023. While adjusted EVDA reached $46 million, shrinking 27% versus the second quarter of 2023. Net income for the period was positive in $8 million, decreasing 49% year-over-year. Finally, after debt consolidation as a result of recent M&A's operation, long repayments and dividend payments, net debt as a June 30 of 2024, amounted to $229 million, a reduction of $50 million vis-a-vis December of 2023, showcasing a net debt-adjusted EVDA ratio of 0.9 times.

Speaker Change: The additional year award was.

Speaker Change: And yields.

Speaker Change: December 24.

Jimmy Dean before and today the government issue.

Speaker Change: Great.

Speaker Change: <unk>.

Speaker Change: And in addition, an expansion.

Speaker Change: From December 2024.

Speaker Change: December 20, <unk>, so we will be the operators.

Speaker Change: Sure.

Speaker Change: And do you discern.

Unknown Executive: The decree doesn't establish... And the process itself, they only call on the Secretary of Energy to start the process and call the, or to start the process within 180 days by the end of the year. It doesn't establish how the process will work, how the remuneration or the prices for this new concession period will be. It will be at market price, so it will be a PPA, the red will be hydro, so we don't know yet the details, and we need to wait until we see the details of how the new concession period will work.

Speaker Change: December <unk>.

Speaker Change: Some in the degree that established.

Unknown Executive: The process itself, they only call on the Secretary of Energy to start the process in 180 days, but it doesn't establish how the process will be, what the remuneration or the prices for this new concession period will be. Will it be market prices, or will it be PPA directly with the hydro? We don't know yet the details, and we need to wait until we see the details of how the new concession period will work.

Speaker Change: Regarding showing up.

Speaker Change: For fall <unk> process management <unk>.

Speaker Change: This worked for 30 years.

Speaker Change: Constellation.

Speaker Change: Before Doug and December during each of the five.

Speaker Change: The great news in 90 days.

Speaker Change: Got it.

Speaker Change: The process, we will be operating.

Joe: Hi, Joe.

Joe: But.

Joe: Of course as you mentioned we are interesting in continues.

Joe: Please.

Unknown Executive: As you know, the actual concession period was challenging because they established market prices at the beginning. And then after seven years of market prices, we will see completely controlled prices going down. And the concession was not the one that we imagined at the beginning.

Unknown Executive: As you know, the actual concession period was challenging because they established a market price at the beginning, and then after seven years of market prices, we would see a completely controlled price going down, and the concession was not the one that we imagined at the beginning. So, for the new period and how will our participation in this new process be, we need to see the details about the remuneration and all the details about this new option to see if we, but as a question, are very interested in participating if they are there. The following conditions are the correct ones.

Jonathan: <unk> four for Jonathan.

Joe: Yes.

Joe: Good.

Alejandra Diaz Lopez: Now, let's move to the most recent regulatory updates and relevant facts. We have anticipated in our last call the resolution 50A issued by the Secretary of Energy on May the 6th concerning on page for receivables with commethe. Regarding this resolution, Central Puerto finally accept it on May the 16th, the payment mechanism by means of which trea receivables accrued in December of 2023 and January of 2024 were paid with Argentine Republic U.S. Dept, at base value.

Speaker Change: The degree gasoline established.

Speaker Change: The processing sales calls.

Speaker Change: It's a great value.

Speaker Change: You too.

Speaker Change: The grocery or South Dakota.

Speaker Change: To start with you 180 days.

Unknown Executive: So for the new period, and how our participation in this new process will be, we need to see the details about the remuneration and all the details about this new option to see if we, but as a question, we are very interested in participating if they are there. If the conditions are the correct ones. And as you mentioned, of course, we know the asset in detail, so we think that we have an advantage there, because we know that we have the people to operate it, so, of course.

Speaker Change: That's been established.

Speaker Change: How will be the proceeds we how will be the remuneration.

Speaker Change: The prices for these new completions.

Speaker Change: The market variety so it will be EBITDA already behind us. So we don't know yet.

Fernando Bonnet: to see it.

Fernando Bonnet: But, as you question, we are very interested in participate if they are the conditions are the correct ones. And, as you mentioned, of course, we know they get it in detail, so we think that we cover advantage there because we know that we have the people to operate that. So, of course, we have some advantages.

Speaker Change: They need things.

Speaker Change: And we need to wait and see the details.

Alejandra Diaz Lopez: While trea receivables accrued in February of 2024 were paid with funds available in commethe's bank account and transfer may by the national government to the stabilization fund. This resolution carry out a consolidated loss of approximately 20,459 million pesos or approximately 22.5 million dollars. However, it should be noted that this resolution did not affect the ordinary course of business of the company, its payment capacity, nor its available financing options. Regarding the situation of Piazzalala hydro operation on May the 17th, the Secretary of Energy issue resolution 70A by means of which it extended the transition period up to December the 28th of 2024 as it is allowed in the concession contract.

Unknown Executive: And as you mentioned, of course, we know the assets in detail. So we think that we have an advantage there because we know the details; we have the people to operate them. Of course, as we are there, we have some advantages.

Speaker Change: How will be the new <unk>.

Speaker Change: Concession fees as you know.

Speaker Change: The actual transition period was challenging because the.

Speaker Change: Navigation market prices at the beginning and then after share.

Speaker Change: 10 years of market prices.

Unknown Executive: We are there; we have Santa Barbara. Thank you, very clear. My second question is, well, we learned that you would be interested in moving forward with a transmission project to take energy to the mining companies in the north of the country. I was wondering if you could tell us a little bit more about this project, and we also heard something similar with YPF Luz. I don't know if they are two separate projects or if you are considering probably moving forward together, as they mentioned that they were trying to, to add other important participants in that project.

Speaker Change: A completely borne drove prices going down.

Martin Arancet: Thank you very clear.

Martin Arancet: Thank you, very clear. My second question is, well, we learned that you would be interested in moving forward with a transmission project to take energy to the mining companies in the north of the country. I was wondering if you could tell us a little bit more about this project, and also we heard something similar with YPF Luz. I don't know if they are two separate projects or if you are considering moving forward together, as they mentioned that they were trying to add other important participants in that project.

Speaker Change: The condition was not the one that we.

Martin Arancet: My second question then is, well we learned that you will be interested in moving forward with the transmission project to take energy to the mining companies in the north of the country. I was wondering if you could tell us a little bit more of this project. And also we heard something similar with YPF loose. I don't know if they are to separate projects or if you are considering probably moving forward together, as they mentioned that they were trying to add other important participants in that project.

Speaker Change: The margin at the beginning and so forth.

Speaker Change: The new media that would be our participation.

Speaker Change: For us as we need to see.

Speaker Change: These days about.

Speaker Change: The remuneration.

Speaker Change: So it will be.

Alejandra Diaz Lopez: Regarding the situation of Piazzalala hydro operation on May the 17th, the Secretary of Energy issue resolution 70A by means of which it extended the transition period up to December the 28th of 2024 as it is allowed in the concession contract. On June the 14th, the Secretary of Energy issue resolution 99, which updated Permanentation prices for energy and power sold in the spot market. Permanentation values increase 25% since June the 1st of 2024.

Speaker Change: Sure.

Speaker Change: Let's see.

Speaker Change: Ask your question.

Speaker Change: In partnership.

Speaker Change: Yeah.

Speaker Change: The conditions are the great ones.

Speaker Change: And unless you mentioned of course, we know the asset.

Speaker Change: So we've seen that we filed.

Alejandra Diaz Lopez: On June the 14th, the Secretary of Energy issue resolution 99, which updated Permanentation prices for energy and power sold in the spot market. Permanentation values increase 25% since June the 1st of 2024. So this price adjustment affects positively our revenues during the the thermal generation tender process called their conf was finally cancelled as it was determined by a resolution 151 issued by the Secretary of Energy on July 8th. Finally, there was another price adjustment determined recently by the Secretary of Energy. Although it has no impact on the second quarter figures, it should be noted that a 3% increase on power and energy prices was granted since August 1st by means of resolution 193.

Speaker Change:

Speaker Change: And then this data because we know.

Fernando Bonnet: Yes, we are. As you know, we are looking forward to new developments in terms of a new. We are one of the bigger players there. And we see that the demand already, or the demand that we have right now, is not enough to develop new projects. We are reaching a limit there because in two cents, the limit in terms of transmission lines, but the limit in terms of demand, the good contracts are already set. The good players and takers have already covered.

Unknown Executive: Yes, we are, as you know, looking for new developments in terms of renewal. We are one of the bigger players there, and we see that the demand is already, or the demand that we have right now, is not enough to develop new projects. We are reaching a limit there because, in two senses, the limit in terms of transmission lines, but a limit in terms of demand; the good contracts are already set, the good players and stakeholders are already covered, so we think that the expansion needs to come through a new development, try to take these new developments, renewable developments, to new demand. The new demand is right now the mining companies, the lithium mining companies in the north. The problem is they don't have a line there because they are in, you know, what the... 4,000 meters above sea level, in the mountains.

Unknown Executive: Yes, we are, as you know, looking for new development in terms of renewal. We are one of the bigger players there, and we see that the demand is already, or the demand that we have right now, is not enough to develop new projects. We are reaching a limit there because, in two senses, the limit in terms of transmission lines but limits in terms of demand, the good contracts are already set, and the good players and stakeholders are already covered.

Speaker Change: We have the people to operate.

Speaker Change: Right.

Speaker Change: Of course.

Speaker Change: We have some advantages.

Speaker Change: Thank you very clear.

Speaker Change: My second question then is what we learned that you will be interested in moving forward with it sounds me from brokerage to take energy to the mining companies in the north of the country.

Alejandra Diaz Lopez: So this price adjustment affects positively our revenues during the the thermal generation tender process called their conf was finally cancelled as it was determined by a resolution 151 issued by the Secretary of Energy on July 8th. Finally, there was another price adjustment determined recently by the Secretary of Energy. Although it has no impact on the second quarter figures, it should be noted that a 3% increase on power and energy prices was granted since August 1st by means of resolution 193.

Speaker Change: I was wondering if you could tell us a little bit more of this project and also we heard something similar with a white P. F loose I don't know if.

Fernando Bonnet: So we think that the expansion need to come through, try to put the, or to take these new developments, renewable amendments to the new demand. The new demand is right now that the mining companies in the leaking mining companies in the north. The problem is they don't have a line there because they are at the 4,000 meters up at the energy in the mountains. So we need to take the renewals of the energy produced by the renewals there, and the only way to do it is try to develop new transmission lines in the north. And we are trying to get the, to collect all the demands in order to know if it's strong enough to develop a project there, which is a transmission line crossing Salta and some part of Atamarca, specifically Salta province, but entering in the portion of the damarca also.

Unknown Executive: So we think that the expansion needs to come through new development, trying to take these new developments, renewable developments, to new demand. The new demand is right now from mining companies, the lithium mining companies in the north. The problem is they don't have a line there because they aren't in, you know, what they are... 4,000 meters above sea level, in the mountains, so we need to take the energy produced by the renewables there.

Speaker Change: They are two separate Brooks hits or if you are going to see them broadly moving forward together us the medicine.

Speaker Change: They were trying to.

To the.

Speaker Change: Other.

Speaker Change: Important participants in that boat.

Speaker Change: Yes, we are.

Speaker Change: As you know we are moving.

Speaker Change: Moving forward.

Speaker Change: Developments in terms of renewal.

Speaker Change: Do you play in there and we see that the demand already or the demand that we have right now was not enough to develop new.

Unknown Executive: So we need to take the renewable energy produced by renewable energy sources there. And the only way to do it is to try to develop new transmission lines in the north, and we are trying to..., trying to get, to collect all the demands in order to know if it's strong enough to develop a project there, which is a transmission line crossing Salta and some parts of... Catamarca, specifically in Salta province, but entering a portion of Catamarca also.

Alejandra Diaz Lopez: Continuing with news and relevant facts, we have also anticipated in our last call the investment may in the mining industry. Let me recall that on April the 22nd, our subsidiary, Permanent, enter into a common shares subscription agreement with our Silver Resource Corporation by means of which it was granted with the 4% interest in the share capital of the aforementioned company, which is the owner of the Silver Gold Project Diavlicious located in the northeast region of Argentina.

Unknown Executive: And the only way to do it is to try to develop new transmission lines in the north, and we are trying to..., trying to get, to collect all the demands in order to know if it's strong enough to develop a project there, which is a transmission line crossing Salta and some parts of the area and Catamarca, but in an entitlement portion of Catamarca. We know that YPF was at the beginning of the year talking about some ideas to be part of the project that we are thinking about, but we don't have the opportunity to talk with YPF yet, in order to and Unknown Executive, Central Puerto SA, working together project or working together scheme, but we are open to doing it, and perhaps it will happen if they have a similar idea that we have.

Perfect.

Speaker Change: Reaching a limit there because.

And do you sense that limits in terms of transmission lines about needs in terms of demand very good contract has already said.

Speaker Change: Yes.

On stage already cover so we're seeing that expansion needs.

Speaker Change: Sure.

Try to woo.

Speaker Change: D J.

Speaker Change: Developments renewal of amendments.

Speaker Change: My knees right now.

Speaker Change: Mining companies mining companies in Denmark.

Alejandra Diaz Lopez: With regards to the investment project currently in execution, let me tell you that. In the case of San Carlos Solar Farm, construction agreements with Shanghai Electric Power Construction Company were sign of March the 27th, and works began on July the 31st, being April of 2025, the COD. As of today, all permits are in place. Local vendors have already initiated their purchasing process, and the site is being prepared for construction and assembly. Also, equipment is being delivered to Argentina.

Fernando Bonnet: We know that YBF was at the beginning of the year talking about some projects that could be similar or could be part of the project that we are thinking in, but we don't have the opportunity to talk with YBF yet in order to analyze as possible, working together projects or working together as a scheme. But we are open to do it; perhaps it will happen if they have the similar idea that we have. It will come. but we are in a real state yet because we are trying to collect the demand if a number thing if we're struggling off to move forward with the project that requires a lot of engineering analysis because it's a challenge for a project.

Unknown Executive: We know that YPF was at the beginning of the year talking about some... to be part of the project that we are thinking about, but we don't have the opportunity to talk with YPF yet in order to analyze a possible working together project or working together scheme, but we are open to doing it, and perhaps it will happen if they have a similar idea that we have. But we are in the early stage yet because we are trying to collect demand and understand if it's strong enough to move forward with a project that requires a lot of..., a lot of engineering analysis because it's a challenging project. So we are collecting information and talking with stakeholders, and talking with the province, and trying to develop the project.

Speaker Change: The problem is they don't.

Speaker Change: My lines there just because.

Martin Arancet: Ok, just a follow-up on that one. How would you recover the investment? Could you charge for the transmission line, or would you have to recover that through the energy contract?

Speaker Change: Yeah.

Speaker Change: You know what.

Speaker Change: 4000, neither setup there Jim demand, there and so we need to renew.

Speaker Change: Renewals again energy produced by the renewals leader and the only way to do it.

Speaker Change: We strive to develop a new transmission lines.

Speaker Change: Yes.

Speaker Change: We are trying to.

Trying to get.

Speaker Change: I hope to collect all the demand.

Alejandra Diaz Lopez: Also, equipment is being delivered to Argentina. In the case of Brigadier Lopez Combine Cycle, as you may recall, Central Puerto is going to convert an open cycle thermal power plant with the gas turbine into a combined cycle of thermal power plant with addition of a steam turbine. The EPC supplier, SACDE, received the notice to proceed on February the 26th of 2024, and the COD is scheduled for October of 2025. As of today, works on the site have already started, with the assembly of pipes and wires, communication systems and water intake systems. It is important to notice that both projects are on a schedule and on budget.

Unknown Executive: We are in the early stage yet because we are trying to collect demand and understand if it's strong enough to move forward with the project, which requires a lot of... a lot of engineering analysis because it's a challenging project. So we are collecting information and talking with the stakeholders and talking with the province and trying to develop the project. Ok, just a follow-up on that one. How would you recover the investment?

Speaker Change: No.

Alejandra Diaz Lopez: In the case of Brigadier Lopez Combine Cycle, as you may recall, Central Puerto is going to convert an open cycle thermal power plant with the gas turbine into a combined cycle of thermal power plant with addition of a steam turbine. The EPC supplier, SACDE, received the notice to proceed on February the 26th of 2024, and the COD is scheduled for October of 2025. As of today, works on the site have already started, with the assembly of pipes and wires, communication systems and water intake systems. It is important to notice that both projects are on a schedule and on budget.

Speaker Change: So long enough to develop a.

Speaker Change: Perfect.

Speaker Change: Did you say it was material nine gross insult.

Speaker Change: Some part of the.

Speaker Change: Specifically Santa proteins.

Speaker Change: Portion of the mogul so we know that.

Fernando Bonnet: So we are collecting information and talking with the stakeholders and talking with the province and trying to develop the project yet.

Speaker Change: Is it worse at the beginning of the year talking about some <unk>.

Speaker Change: That could be <unk> could be part of the person that we have seen.

Martin Arancet: Okay, just to follow up on that one, how would you recover the investment? Could you charge for the transmission line, or would you have to recover that for the energy contract? Well, the regulation is not already set.

Speaker Change: Yeah.

Speaker Change: But as we go.

Doug White: You have the opportunity to Doug White.

Doug White: In order to.

Unknown Executive: Could you charge for the transmission line, or would you have to recover that for the energy contract? Well, the regulation is not yet set; if we construct a transmission line, we will need to have a new regulatory scheme because right now, there is not a clear regulatory framework for doing so, but if we can build the transmission line and we have the exclusivity to operate that transmission line, we will, of course, want to produce and deliver our services as well.

Speaker Change: Is it mostly rule.

Speaker Change: Working together proceeds are working together the scheme.

Unknown Executive: Well, the regulation is not yet set. When we construct a transmission line, we will need to have a new regulatory scheme because right now, there is not a clear regulatory path to do it. But if we can build the transmission line and we have the exclusivity to operate that transmission line, we will, of course, want to produce and deliver also our... Renewable Energy, so we will see that it will, in the webinar, may be together forever.

Speaker Change: But we are open to them.

Speaker Change: Let me jump in.

Fernando Bonnet: If we construct the transmission line, we need to have a new regulation scheme because there are not a clear regulation path to do it. But if we can build the transmission line and we have the exclusivity to operate that transmission line, we will of course want to produce and to deliver our, our, also our renewable energy. So we will see that it will imply a charge for the transmission line and also a charge for the renewable energy also. So we will see a combination of weaknesses there. Not only the transmission line by itself, and they are engaged there.

Alejandra Diaz Lopez: Now, let's skip to the Argentine Energy Market Picture of this water that will be shown on a slide 7 and 8. By the end of the second quarter of 2024, the countries install capacity of 43,603 megawatts, which means an increase of 0.5% or 188 megawatts, compared to the 43,405 megawatts, recorded as of June the 30th of 2023. The variation is a combination of the installation of new power facilities and the addition of capacity, adjustment and repowering of power plants that were already in operation.

Speaker Change: Got the similar idea.

Speaker Change: Hum.

Speaker Change: But we are adding at least stage yet because we are trying to collect the demand.

Speaker Change: And then the thing that would be strong enough to move.

Speaker Change: To move forward with the perfect bedroom wireless logo.

Speaker Change: A lot of engineering.

Speaker Change: And I'll leave you to because he said.

Speaker Change: LNG.

Speaker Change: So we are collecting information until we did the bakers and talking with the programs.

Unknown Executive: Renewable Energy, so we will see that it will, implies a charge for the transmission line and also charges for the renewable energy also, so we see a combination of businesses there. Not only the transmission line by itself, and in the other case, the renewables going separate. We would see a combined business of the transmission line and the renewable procurement. Unknown Speaker 05.

Speaker Change: Trying to develop the brushy.

Speaker Change: Okay, just as a follow up on that one Hum will you recover the investment.

Speaker Change: Yes.

Speaker Change: Could you charge for the transmission line or or will you have to to recover that through the energy contract.

Alejandra Diaz Lopez: The positive variation of 180 megawatts is the composed as follows. We have an increase of 533 megawatts of renewable sources of which 368 megawatts corresponds to wind farms, 50 megawatts of new power plants installed during the second quarter of 2024, 155 megawatts to solar plants of which 12 megawatts corresponds to new power plants installed during the second quarter of 2024, and 9 megawatts to buy gas power plants. Then we have a decrease of 335 megawatts in thermal sources, which includes a positive variation of 527 megawatts of combined cycles and a negative variation of 862 megawatts of gas and steam turbines and diesel engines.

Fernando Bonnet: There are new rules going separate. We will see that. But together, business transmission line and the renewable procurement will be together for us.

Speaker Change: Well the religion, if not already.

Speaker Change: We constructed a transmission line, we need to have a new regulation scheme because right now.

Speaker Change: No.

Martin Arancet: Okay, thanks.

Martin Arancet: What are you expecting in terms of CapEx for the remainder of 2024 and 2025 and if you are considering tapping the debt market anytime soon?

Speaker Change: A clearer regulation.

Martin Arancet: Okay, thanks. My final question then is, what are you expecting in terms of CapEx for the remainder of 2024 and 2025? And if you are considering tapping the debt market anytime soon?

Fernando Bonnet: My final question then, it's, what are you expecting in terms of CAPEX for the reminder of 224 and 25 and if you are considering tapping the debt market any time soon. The CAPEX that we are expecting is the one that we have been carrying on, which is the GLOPS closing of the combined cycle and the project that we, solar project that we are developing in Salta, which is the San Carlos project. The project, the two projects together are talking about for the GLOPS $150 million, but more or less we have left to expand around $90 million, and in terms of San Carlos, we are talking about $15 million, and it is kind of like a 13. We need to spend some time from now to the second or the third work that I have made here.

Speaker Change: Bob do you do it but if we can deal with the transmission line and we have an exclusive with you too to operate towards mutual alignment.

Bob: Of course.

Bob: Wanted to grow.

Speaker Change: Use to lever our our own software.

Unknown Executive: The context that we are expecting is the one that we have been carrying on, which is the Guillermo López closing of the combined cycle and the solar project that we are developing in Salta, which is the San Carlos project. The two projects together are talking about $150 million for the Lopez, that more or less we have left to spend, around $90 million, and in terms of San Carlos, we are talking about $15 million, which is kind of like a $13, who is Spencer Dean from now to... the third quarter of next year.

Unknown Executive: The context that we are expecting is the one that we have been carrying on, which is the Guillermo López closing of the combined cycle and the solar project that we are developing in Salta, which is the San Carlos project. The two projects together are talking about $150 million for the Lopez, but more or less we have left to spend, around $90 million, and in terms of San Carlos, we are talking about $15 million, which is kind of like $13 million. We need to spend 13 from now to... the third quarter of next year.

Renewable energy, so we will see.

Speaker Change: Implies.

Speaker Change: Josh for the transmission line and also Joshua.

Speaker Change: The.

Speaker Change: Renewable yields and so we see a combination of meat and cheese.

Speaker Change: Not only does mute your line.

Speaker Change: Phil.

Speaker Change: Okay.

Speaker Change: The renewals.

Separate.

Speaker Change: Together.

Speaker Change: Transmission running under the renewables Julian.

Generation rows 6% during the quarter on a year of a year basis. The growth was basically driven by nuclear and hydro generation. Renugal generation also but on a much smaller scale. Nuclear Generation was significantly higher as a result of the rank operation of a Tucha 2 power plan, which was in maintenance shutdown during the first half of 2023. This power plan for some operation in August of 2023. Hydrogenation rate of flow was remarkable, especially in May, with 60% of growth year over year due to the outstanding increment in the flow of river.

Alejandra Diaz Lopez: Generation rows 6% during the quarter on a year of a year basis. The growth was basically driven by nuclear and hydro generation. Renugal generation also but on a much smaller scale. Nuclear Generation was significantly higher as a result of the rank operation of a Tucha 2 power plan, which was in maintenance shutdown during the first half of 2023. This power plan for some operation in August of 2023. Hydrogenation rate of flow was remarkable, especially in May, with 60% of growth year over year due to the outstanding increment in the flow of river.

Speaker Change: Maybe together for us.

Speaker Change: Okay. Thanks, and my final question, then is where are you expecting in terms of Capex for the remainder of turns into for inclusion into five <unk>.

Speaker Change: If you are considering tapping the debt market. They can tell me so.

Speaker Change: The companies that we are expecting is the one that we have been.

Martin Arancet: Okay, thank you very much.

Martin Arancet: Okay, thank you very much. That's all on my side.

Unknown Executive: Thank you very much, that's all I have to say. Again, if you have a question today, please press star then one on your phone. There were no other classes.

Speaker Change: Good day.

Martin Arancet: That's all my say. Okay, thank you. Thank you.

Speaker Change: We'll see.

Operator: Okay, thank you. Thank you. Again, if you have a question today, please press star then one on your phone at this time. And there were no other questions, and that concludes our question and answer session. I would like to turn the conference back over to Mr. Fernando Bonnet for any closing remarks.

Speaker Change: Combined cycle.

Unknown Executive: Again, if you have a question today, please press star, then one on your phone. At the time, there were no other questions, and that concludes our question and answer session. Thank you.

Speaker Change: And.

Speaker Change: The proceeds that we'd be.

Speaker Change: Solar project Development Center, which is the sum total of Brushy.

Speaker Change: We appreciate that.

Speaker Change: The two projects together are talking of.

Fernando Bonnet: I would like to turn the conference back over to Mr. Fernando Bonnet for any closing remarks. Thank you to everyone for your interest in Central Puerto. We encourage you to call us for any information that you may need. Have a great day. Thank you. This does conclude today's conference.

Alejandra Diaz Lopez: We have Uruguay River with the growth of 500%, Delimae River with 82% of road, and the question could arrive with the 45% rate of road. The higher supply of nuclear hydro and renewables from a lower formal dispatch and as a consequence a lower fuel consumption was a resistor. 12% decrease was a resistor in equivalent natural gas million cubic meters. Focusing now on the demand, as you can see electricity demand increased 2% to 33.4 per hour compared to 32.9 per hour, regarding during the second quarter of 2023, which is basically explained by a rise in residential consumption due to weather conditions.

Speaker Change: For the.

Speaker Change: Lumpiness at 160 $150 million.

Speaker Change: But.

Fernando Bonnet: Thank you to everyone for your interest in Central Puerto. We encourage you to call us for any information that you may need. Have a great day!

Speaker Change: More or less we are we have now expanded.

Speaker Change: Expanding.

Speaker Change: Around $90 million.

Speaker Change: In terms of Sangamo, we are talking about.

Operator: Thank you. This does conclude today's conference. You may disconnect at this time. Have a wonderful day. Thank you for your participation.

Speaker Change: $15 million.

Unknown Executive: This does conclude today's comment.

Speaker Change: I know.

Speaker Change: So.

Speaker Change: We need to spend for <unk> right now.

Speaker Change: The sequential third quarter of next year.

Speaker Change: Yeah.

Speaker Change: Okay. Thank you very much that's almost like.

Speaker Change: Okay. Thank you.

Speaker Change: Thank you again.

Speaker Change: Again, if you have a question today. Please press Star then one on your phone at this time.

Speaker Change: And there were no other questions and that concludes our question and answer session I would like to turn the conference back over to Mr. Fernando <unk> for any closing remarks.

Alejandra Diaz Lopez: On average, the temperature was 0.9° lower during the second quarter of 2024, when compared to the same period of last year. May was the coldest month during the second quarter of 2024, with temperatures 3.7° lower than the same month of 2023. Not surprisingly, residential consumption skyrocketed along the single month, increasing 29%. Although the electricity trade balance during the second quarter of 2024 resulted in a net import situation, exports were higher and imports lower during this quarter, vis-à-vis the second quarter of 2023, thus reducing the net import balance.

Speaker Change: Yeah.

Speaker Change: Thank you to everyone for your interest in <unk>, what do we encourage you to go to us for any information that you may need to have a great day.

Speaker Change: Yeah.

Speaker Change: Thank you. This does conclude today's conference you may disconnect at this time.

Felipe Thank you for your participation.

Alejandra Diaz Lopez: We now go to slide 9 to our key operating indicators for the quarter. We can see that energy generated by the center of the quarter rose 5% to 4,985 gigawatts per hour compared to 4,762 gigawatts per hour during the second quarter of 2023. In the second quarter of 2024, hydro energy generation from Piavella increased 94% as compared with the second quarter of 2023, reaching 978 gigawatts per hour as a direct result of higher levels of water available for generation, which was a direct consequence of higher flow of river as we have written to the explain.

Alejandra Diaz Lopez: With regards to renewables, energy generation increased 5% in the second quarter of 2024, compared to the second quarter of 2023, being basically explained by the 48-hour generated by one Israel solar farm, acquired in October of 2023. Speaking specifically of wind generation, it decreased almost 8% or 30 gigawatt-hour reaching 354 gigawatt-hour during the second quarter of 2024. This is primarily due to the storm that hit by a blanca in December of 2023, which impacted La Castellana too.

Alejandra Diaz Lopez: Generation from La Castellana 1 was also lower due to maintenance works, carry on some blades. Regarding thermal generation, it decreased 7% in the second quarter of 2024, compared to the second quarter of 2023. Basically, as a result of lower dispatch of some units, which was a direct consequence of higher hydro and nuclear aggregate supply in the system as we explained earlier. Regardless, the lower dispatch, it should be highlighted the good availability figures for the quarter, both against the market average and against Central Puerto own metrics for the second quarter of 2020.

Alejandra Diaz Lopez: Despite the lower thermal dispatch during this quarter, I mean the second quarter of 2024, for the whole system and Central Puerto, it should be noted the higher generation of Buenos Aires combined cycle as a consequence of the maintenance program carry out last year.

Alejandra Diaz Lopez: Now, let's move to our revenues breakdown. As you can see on slide 10, this amounted to 168 million dollars in the quarter, as compared to 147 million dollars in the same period of 2023. It should be noted that the gap between inflation and evaluation in the period has positively affected the second quarter of 2024 figures at the non-Cash level. Due to the company's accounting methodology and the conversion into dollars using the end of the period of future exchange rate, thus making the comparison with the second quarter of 2023 more complex to analyze.

Alejandra Diaz Lopez: Hence, having in mind this effect, the variation in revenues is a consequence mainly of. A 14% or 10 million dollar increase in spot sales driven by a higher dispatch of Pira da Laida Hydro Power Plant, higher availability of some thermal units, especially in Central Cotanera, and also higher generation from Buenos Aires combined cycle. And 8% or 5 million dollar increase in sales under contract, mainly explained by the recent acquisition of the solar farm, Juan y suil, and higher sales of cogeneration units, basically we're speaking of Luja de Cusha facility.

Alejandra Diaz Lopez: Sales of wind farms were lower due to lower wind generation. As we mentioned before, Lancasterjana 2 was hit by a tricer in December of 2023, and there was maintenance work carry on some blades in Lancasterjana 1. Finally, there was a 42% or 3 million dollar increase in steam sales driven by basically higher production levels in Luja and the Cushion Facility, which is basically a consequence of higher availability of units and a higher demand from YPF.

Alejandra Diaz Lopez: On slide 11, we can see the dynamic of our adjusted EVDA. During the second quarter of 2024, the group's adjusted EVDA amounted to 46 million dollars shrinking 27% or 17 million dollars when compared to the 63 million dollars in the same quarter of 2023. When analyzing the adjusted EVDA, we can observe that the variation is mainly explained by. The previously stated higher aggregate sales driven by spot sales and sales from the contract, and a positive non-gash effect on the gap between currency evaluation and inflation.

Alejandra Diaz Lopez: Then we have a 4% or 2 million dollars decrease in cost of sales, explain basically by a reduction of some production cost, compensation to employees, consumption of materials and spur parts, and forestry and forest protection services expenses. Being or partially upset by a negative non-gash effect on the gap between currency evaluation and inflation. HENA decrease 9% or 2 million dollars mainly by lower fees and compensation for services and lower taxes. Again, being partially upset by a negative non-gash effect on the gap between currency evaluation and inflation.

Alejandra Diaz Lopez: Finally, other operating results net in the second quarter of 2024 were lower than the second quarter of 2023 by 365% or 42 million dollars, basically as a consequence of the impact of the resolution 58. There were also lower interest from client and lower positive effect difference and a negative non-gash effect on the gap between currency evaluation and inflation.

Alejandra Diaz Lopez: Moving to the next slide, the consolidated net income. During the second quarter of 2024, central portals net income amounted to 8 million dollars decreasing 54% or 9 million dollars on a year of a year basis. The net income was positively affected by non-gash effects including results generated by the change in purchasing power of the currency, variation in biological assets and lower DNA. These items were practically upset by lower funny effects, difference and interest.

Alejandra Diaz Lopez: Then we have net financial results, which decrease $1 million year-of-year, basically by lower interest earn and lower variation in the 4-body of financial assets. These items were partially upset by lower foreign exchange difference on financial liabilities, lower bank commissions and higher share of the profit of associates.

Alejandra Diaz Lopez: Finally, on slide 13, we have the cash flow dynamic during the 6th month of 2024. Netcash provided by operating activities was $67 million during the 6th month of 2024. This amount is mainly explained by higher income before income tax for the period, and higher interest and from clients, being or partially upset by tax payments. Then the net cash used by investing activities was $13 million during the first 6 months of 2024.

Alejandra Diaz Lopez: This amount is basically explained by the CapEx allocated to St. Carlos Ambrigadier-Loppers' projects, being partially upset by the sale of some financial assets. Finally, financing cash flow was negative in $66 million during the first 6 months of 2024. This is basically the result of long-term, long repayments and interest payments, dividend payment, being or partially upset by lower bank and investment account overdraft, and long-term long-disparsement. Consequently, our cash position, as of June 30th of 2024, amounted to $5 million. If financial assets are included, our total current liquidity amounts to $158 million.

Alejandra Diaz Lopez: With this, I conclude the presentation, and now we invite you to ask any question to our team. Thank you very much for your attention.

Martin Arancet: And the first question today is coming from Martin Arlesett from Balance Capital. Martin, your line is live. Hi, well first, thank you for the presentation.

Martin Arancet: I have three questions and I would like to run them one by one if that's okay. The first one probably is recent, so I don't know if you will have an answer, but last Friday, the government issued a resolution to auction again some higher plans, including Pirae Lailla, but to prioritize them. So apparently you will have the control of the asset until the end of 2024. After which there should be a transition period to the new owner, I was wondering what do you think about this privatization process if you are interested in participating probably for Peter Lailla or maybe another hydro plant and also if you consider that being the current operator of Peter Lailla gives you an advantage if you choose to participate. This is a third one.

Fernando Bonnet: Thank you, Martin, for your question. In fact, as you mentioned, the government made an extension or used all the driving that is establishing the contract transition period and the additional year award was until December 24, 2024 and today the government issued a new decree establishing an additional extension going from December 2024 for Peter Lailla to December 2025. So we will be the operators for Peter Lailla until December 2025. There are some in the decree that establish some reduction in that period they perform the bidding process and you mentioned a new bidding process for a new 30 years concession.

Fernando Bonnet: Before that in December 2025, they could reduce 90 days to that period but if they cannot make the perform the process, we will be operating the hydro until December 2025. Of course, as you mentioned, we are interested in continuing and participating in that bidding process a new bidding process for half and another 30 years period for Peter Lailla. The decree doesn't establish the process itself. They only call the Secretary of Energy to start the process and to start the process in 180 days by the doesn't establish how we do the process with how we bid a renovation or the prices for these new concession periods would be a market price, so it would be a PPA, the Redwood, the Hydro.

Fernando Bonnet: So we don't know yet the details and we need to wait until you see the details, how it would be that new concession period. As you know, the actual concession period was like a challenging because they establish a market price at the beginning and then after seven years of market prices, we see a completely control price is going down and the concession was not the one that we imagined at the beginning.

Fernando Bonnet: So for the new period and how it would be our participation in this new process, we need to see the details about the renovation and all the details about this new function, to see it. But as you question, we are very interested in participate if they are the conditions are the correct ones. And as you mentioned, of course, we know the gases in detail. So we think that we cover and that is there because we know that we have the people to operate that. So, of course, we have some advantages. Thank you very clear.

Martin Arancet: My second question then is, well, we learned that you will be interested in moving forward with the transmission project to take energy to the mining companies in the north of the country. I was wondering if you could tell us a little bit more of this project. And also, we heard something similar with YPF loose.

Fernando Bonnet: I don't know if they are to separate projects or if you are considering probably moving forward together as they mentioned that they were trying to add other important participants in that project. Yes, we are, as you know, we are looking forward new developments in terms of a new, we are one of the bigger players there. And we see that the demand already, or the demand that we have right now is not enough to develop new projects.

Fernando Bonnet: We are reaching a limit there because in two cents, the limit in terms of transmission lines, but the limit in terms of demand, the good contractors are already set. The good players and the takers are already covered. So we think that the expansion need to come through, try to put the, or to take these new developments, renewable developments to the new demand. The new demand is right now, the mining companies in the lithium mining companies in the north.

Fernando Bonnet: The problem is they don't have a line there because they are in, you know, at the 4,000 meters up at the energy in the mountain, so we need to take the renewals or the energy produced by the renewals there. And the only way to do it is try to develop a new transmission lines in the north. And we are trying to try to get the, to collect all the demands in order to know if it's strong enough to develop a project there, which is a transmission line, was in Salta and some part of Katamarka, specifically in Salta province, but entering in the portion of Katamarka also.

Fernando Bonnet: We know that YBF was at the beginning of the year talking about some projects that could be similar or could be part of the project that we are seeing in in, but we don't have the opportunity to talk with YBF yet in order to analyze it possible, you know, working together projects or working together a scheme, but we are open to do it, perhaps it will happen if they have the similar idea that we have, it will happen, that we are in a real state yet because we are trying to collect the demand if a number thing if we're struggling off to move forward with the project that requires a lot of engineering analysis because it's a challenge for a project. So we are collecting information and talking with the stakeholders and talking with the province and trying to develop the project yet.

Fernando Bonnet: Okay, just to follow up on that one, how would you recover the investment? Could you charge for the transmission line or would you have to recover that for the energy contract? Well, the regulation is not already set. If we construct the transmission line, we need to have a new regulation scheme because they are not a clear regulation path to do it. But if we can build the transmission line and we have the exclusivity to operate that transmission line, we will of course want to produce and to deliver our our also our renewable energy so we will see that it will implies a charge for the transmission line and also charge for the renewable energy also.

Fernando Bonnet: So we will see a combination of weaknesses there. Not only the transmission line by itself and the other case, there are new rules going separate. We will see that together business of the transmission line and the renewable procurement will be together for us.

Unknown Executive: Okay, thanks.

Martin Arancet: My final question then, it's where are you expecting in terms of the graphics for the reminder of 224 and 25 and if you are considering tapping the debt market any time soon. The graphics that we are expecting is the one that we have been carrying on which is the GRL office closing of the combined cycle and the project that we solar project that we are developing in Salta which is the San Carlos project.

Martin Arancet: The two projects together are talking about for the the López one hundred and sixty one hundred and fifty million dollars but more or less we have left to expand around 90 million dollars and in terms of San Carlos we are talking about fifteen million dollars and it is kind of I'm like a thirteen. We need the spend for ten from now to the second or the third work that we have done.

Unknown Executive: Okay, thank you very much that's all my side. Okay, thank you. Thank you.

Unknown Executive: Again, if you have a question today, please press star then one on your phone at the time and there were no other questions and that concludes or question and answer session.

Fernando Bonnet: I would like to turn the conference back over to Mr. Fernando Bonnet for any closing remarks. Thank you.

Unknown Executive: This does conclude today's conference.

Q2 2024 Central Puerto SA Earnings Call

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