Q4 2024 Central Puerto SA Earnings Call
Good morning, ladies and gentlemen, welcome.
Unknown Executive: Good morning, ladies and gentlemen, welcome to Central Puerto's fourth quarter of 2024 and fiscal year 2024 earnings conference. The slide presentation is accompanied today's webcast and is also available on the investor section of the company's website. www.centralpuerto.com slash en slash invest. All participants will be in a listen-only mode during the presentation. After that, 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.centralpuerto.com. 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.
Fourth quarter of 'twenty, 'twenty, four and fiscal year.
2020 earnings conference call.
Good presentation.
Today's webcast.
Available in the investors section of the company's website www dot central Quinto Dotcom flash.
Investors.
All participants will be in a listen only mode. During the presentation after that there'll be an opportunity to ask questions.
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 Dot central Port the dotcom.
In addition, a replay of today's call may be accessed by accessing the webcast link at the same section of this didn't help with those websites.
Unknown Executive: 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. 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. dollars is for the convenience of the reader only, and you should not consider these translations to be representations that the Argentine peso amount actually represents this U.S. dollar amount or could be converted into U.S.
Before we proceed please be aware that all financial figures were prepared in accordance with <unk> and were converted from Argentine pesos to U S dollars for comparison purposes only.
The exchange rate used to convert Argentine peso 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 dollars for the convenience of the reader only and you should not consider these translations to be representation that the Argentine peso amounts.
Actually represents U S dollars amount or it could be converted into U S dollars at a rate indicated.
Unknown Executive: dollars at the rate indicated.
Unknown Executive: Finally, it is worth noting that the financial statements for the fourth quarter ended on December 31st, 2024 include the effects of the inflation adjustment.
Finally, it is worth noting that the financial statements for the fourth quarter ended on December 31, 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 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.
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 SBA. Central Puerto assumes no obligation to update forward-looking statements except as required under applicable securities law. If you want to follow the discussion better, please download the webcast presentation available on the company's website.
We refer you to the forward looking statements section of our earnings release and recent filings with the SEC.
Central Puerto assumes no obligation to update forward looking statements, except as required under applicable securities law.
To follow the discussion better please download the webcast presentation available on the company's website.
Unknown Executive: Please be aware that some of the numbers mentioned during the call may be rounded to simplify the description.
Please be aware that some of the numbers mentioned during the call maybe round it to simplify the discussion.
Unknown Executive: On the call today from Central Puerto is Fernando Bonnet, Chief Financial Officer, Enrique Terrano, and Alejandro Diaz Lopez, Head of Corporate Finance and Investor Relations Office.
On the call today from Central Puerto is Fernando Bonnet, Chief Financial Officer, and he kept the honey and Alejandro <unk> <unk> head of corporate Finance and Investor Relations Officer, and now I will turn the call over to Alejandro is Lumpish. Please Alejandro you may begin.
Alejandro Diaz Lopez: And now I will turn the call over to Alejandro Diaz Lopez. Please, Alejandro, you may begin. Thank you very much and good morning, everybody. Thank you for joining us today on a new session of Earnings Presentation, where we are going to discuss our financial results for the fourth quarter of 2024 and the fiscal year of 2020. As usually, I will begin the presentation by addressing shortly the main figures of the quarter and the whole fiscal year, followed by a quick update of the regulatory framework and relevancy. Then I will show an overview of the Argentine electricity industry moving afterwards to our operational and financial Finally, at the end of the presentation, we will be happy to address any questions.
Alejandro: Thank you very much and good morning, everybody.
Thank you for joining us today on the new session.
Alejandro: Presentation, where we are going to discuss our financial herself.
Alejandro: Port Arthur or between 24, and the fiscal year 'twenty 'twenty four.
Alejandro: As usually I will begin the presentation by addressing and shortly the main figures of the quarter on the whole fiscal year, followed by a quick update of the reward framework.
Alejandro: Okay.
Alejandro: Then I will show an overview of the Argentine electric industry, maybe not the worst through our operational and financial results.
Alejandro: Finally at the end of the presentation, where we'd be happy to address any question you may have.
Alejandro Diaz Lopez: before going into a more exhaustive analysis.
Alejandro: Before going into a more exhaustive analysis of our financial results.
Alejandro Diaz Lopez: World Financial and Operational Results. Let me briefly review Central Puerto's main figures. 4th quarter of 2024, and the whole piece. The group's installed capacity remains. 1703 megawatts and energy generation amounted to 5.4 terawatt hour during the fourth quarter. for increasing 5% year. Annual generation rose 4% to 21.6%. Regarding our financial results, it should be noted that due to Central Puerto's accounting methodology, all items in pesos must be inflation-adjusted 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.
Alejandro: So.
Alejandro: Let me briefly review center affords us the main figures for the fourth quarter of 'twenty 'twenty, four and the whole fiscal year.
Alejandro: The group's installed capacity will remain.
Alejandro: <unk> thousand 700, a three megawatt and energy generation amounted to buy or pay down what our during the fourth quarter of 2024, increasing 5% year over year.
Alejandro: And I understand that Asia, and rose, 4% to 21, six Terawatt hour.
Alejandro: Regarding our financial results. It should be noted that you choose and sort of part of the accounting methodology, all items and passes my input.
Alejandro: Inflation adjusted to the end of the quarter in local currency, while the company reports its results in dollar.
Alejandro: By converting them at the end of the period official exchange rate. The so called Central Bank, a 3000 by hazard exchange rate.
Alejandro Diaz Lopez: The so-called central bank aid $3,500. This causes a non-cash impact that affects positively or negatively as appropriate our financial management. Also, the sharp devaluation of December of 2023 created a distorted base. Revenues for the fourth quarter of 2024 amounted to $168 million, increasing 71% year-over-year compared to the fourth quarter. while annual figure which to. Adjusted EVDA rose 44% year-over-year for the fourth quarter of 2024 to $65 million, whereas the annual metric increased 4% to 288. Net income for the fourth quarter of 2024 was negative in $28 million, and the result for the fiscal year of 2024 was positive in 52.
Alejandro: This causes and noncash aimed back that affect positively or negatively as appropriate our financial metrics.
Alejandro: Also the sharp devaluation of December Austrian G III create it distorted base for comparison.
Alejandro: Revenues for the fourth quarter of 2024 amounted to $168 million, increasing 71% year over year compared to the fourth quarter, Australia 23.
Alejandro: While annual figure reached two $671 million in rising 25%.
Adjusted EBITDA Rose 40.
Alejandro: 44% year over year for the fourth quarter of 2000 $24 million to $65 million, whereas annual metrics increased 4% to $288 million.
Alejandro: Net income for the quarter of 2020 or wasn't there at the $28 million and the result for the fiscal year of 2024 was positive $52 million.
Alejandro Diaz Lopez: Finally, net debt as of December 31st of 2024 amounted to $132 million, a reduction of $154 million vis-a-vis December of 3, showcasing a net debt to adjusted the BTA ratio of about 0.5%.
Alejandro: Finally, net debt as of December 31st of 'twenty 'twenty four amounted to $132 million a reduction of $154 million vis vis December of 'twenty, two 'twenty three showcasing and net.
Alejandro: Debt to adjusted EBITDA ratio of about <unk> five times.
Alejandro Diaz Lopez: Now let's move to the most recent regulatory updates and news. Stock prices have been adjusting once a month since June of 2024. For the fourth quarter of 2024, we had 3% in October, 6% in November, and 5% in December. for the upcoming first quarter of 2025, we will have a compound 10% increase with respect to December of 2024 figures. As we anticipated in our last early session, by means of Resolution 294 issued last year, it was established a contingency plan for the electricity industry with the aim to mitigate possible critical situations during the period of December of 2024 and March of 2026.
Alejandro: Now, let's move to the most recent.
Alejandro: So the update on news.
Alejandro: Spot prices have been adjusting once amount since June upstream.
Alejandro: Sure.
Alejandro: For the fourth quarter of 'twenty 'twenty four we had three per standing October 6% November 5% December.
Alejandro: For the upcoming.
Alejandro: First quarter upstream do you tend to buy we'd be the habit compound, 10% increase with respect to December of 2024 figures.
Alejandro: As we anticipated in our last earnings session by means of resolutions you handle 90 or issue last year.
Alejandro: It was to establish a contingency plan for that of the industry with the aim to mitigate possible critical situation during the period of December of 2024.
Alejandro: March obtain decent six.
Alejandro Diaz Lopez: with action plans for generation, transmission, and distribution, as well as for mayor. Central Puerto's eligible units to adhere to this resolution include steam turbines located in Buenos Aires and Lujan de Cuyo, gas turbines located in Lujan de Cuyo, as well as the Brigadier Lopez thermal power plant. For Central Puerto, the additional remuneration for power varies from $2,000 to $2,500, depending on month, hour, and unit consumption. Continuing with news and regulatory updates. As you may know, the Secretary of Energy aims to deregulate the industry and normalize the whole. In this sense, the first step was the issuance of Resolution 21 last January that eliminated some restrictions and set paths.
Alejandro: With action plans towards innovation transmission and distribution as well as for me your demand.
Alejandro: Central part the eligible units to adhere to these or solution include steam turbine located dealing one sided.
Alejandro: The crucial gas turbine located on the closure as well as the big idea a little bit of thermal power plants.
Of course in drug court, the deletion of amortization for power batteries from 2000 to $2500 dependent among our and union cause either.
Continuing with noon and regret any updates as you may know the secretary of energy aims to regulate the industry and normalize the whole market.
Alejandro: And this then the first step was the E Commerce offer solutions 21 last January that eliminated some restriction on that path.
Alejandro Diaz Lopez: for Future Amazing. We should highlight that thermal power plant installed after January 1st. are able to celebrate DBAs with private agents. Since March the 1st of 2025, thermal generators are allowed to manage the fuel.
Alejandro: For future decisions.
We should highlight that thermal power plants installed after Jonathan first off can deepen Dubai are able to celebrate ppas with private agents.
Alejandro: Since March the first opportunity to buy thermal generators allow us to manage this view.
Alejandro Diaz Lopez: Finally, an ending eternal for the Energia Plus framework. Current contracts will be in place and continue until their ending date, but new agreements and extensions will have a deadline. October the 31st of 2025. Also in January, the Secretary of Energy, Duca Mesa, issued a document with new regulatory framework for the industry with the objective to put into operation by November of 2025. The basic idea is to rebuild the spot. term markets reinstating a marginal cost system in the first one with some Generators will declare again a valuable cost of production, including the cost of fuel.
Alejandro: Finally, and in several foreign governments.
Alejandro: Framework.
Alejandro: Karen contract with in place and continue until they're ending date, but no new agreements on exchange and we'll have a deadline of October 31st of 25.
Alejandro: All of this in January the Secretary of energy do come in at that issue a decrement with you, but what is a good framework for the industry with the objective to put into operation by November of 2005.
Alejandro: The basic idea is to reveal the spot huh.
Alejandro: There are market reinstating our margin our core system in the personal lines with some adjustment.
Alejandro: Generators will declare again, a body of our cost of production, including the cost of steel.
Alejandro Diaz Lopez: There will be three sources of remuneration, power, energy, and fuel, being the spot prices determined by. The new scheme will put focus on energy rejuvenation, aiming to reinstate market signals to boost investment and efficiency, as well as properly reflect costs and scarcity.
Alejandro: There will be the resources upper motivation power energy.
Alejandro: B in the spot prices that are mined by the market.
The new scheme with good progress on energy determination, I mean, two rings that market signal to invest.
Alejandro: Investment and efficiency as well as copper and lead with product cost on scarcity.
Alejandro: The last conclusion remarks, comsat I mean, the industry situation is the issuance of resolution seven which called for storage capacity tender process.
Alejandro Diaz Lopez: The last concluding remark concerning the industry situation is the issuance of Resolution 67, which calls for a storage capacity tender process.
Alejandro Diaz Lopez: We are carefully analyzing the terms and conditions of this process since we are interested Moving now to Central Puerto's corporate news and updates. We recall the dividend payment of last November with the distribution of 39447 Moving to slide seven, we also announced in December our high voltage transmission line project with the goal of supplying efficient, reliable and competitive energy to mining companies located in the Puna region, which is in northwestern of Argentina. In December, we signed an agreement with the IFC to finance the feasibility studies and project analysis and in January of 2025, we set an agreement with YPF Luz to jointly carry on the development of these remarkable For more information, visit www.fema.gov With regards to our mining activity, we have recently executed two investments.
Alejandro: We are carefully analyzing the terms and condition of this process. Since we are interesting in this project.
Alejandro: Yeah.
Alejandro: Now to central part those corporate news and updates with recall the dividend payments.
Alejandro: Last November with a distribution of <unk> 39 447 per share.
Alejandro: Moving to slide seven our will come down in December our high voltage transmission line project with the goal of the blind ambition reliable uncompetitive energy to mining companies located in the region.
Alejandro: In northwestern Argentina.
Alejandro: In December we signed an agreement with the IFC by now the visibility Stat is perfect analysis and in January of 2025, we set an agreement with a white be applause to jointly carry on the development of these remarkable project.
Alejandro: With regards to our mining activity, we have recently executed two investment.
Alejandro Diaz Lopez: We have acquired a 27.5% stake in Tres Cruces, which is a lithium project. And we have increased our equity participation in Abrazil to 9.9%.
Alejandro: We have acquired.
Alejandro: 7.5% stake in <unk> cruises, which is S lithium projects.
Alejandro: And we have increased our equity participation in our theaters to nine 9%.
Alejandro Diaz Lopez: Finally, a concluding remark regarding our investment project currently in execution. I mean, the San Carlos Alarcon and the Brigadier Lopez combined side. Brigadier Lopez is on schedule, moving at a good pace. while the contractor of San Carlos has presented some delays in its work. We are currently working together to solve our issues and keep the project going.
Alejandro: Finally, a concluding remark regarding our investment projects currently in execution.
Alejandro: I mean, the San Carlos allowed under regalia Lopez combined cycle.
Alejandro: We got a little bit on scandal, moving the goods space.
Alejandro: While the constructor or San Carlos has presented some delay.
Alejandro: Workflow.
We are currently working together to solve our issues and keep the project on track.
Alejandro Diaz Lopez: Now let's skip to the Argentine electricity market picture of this quarter that will be shown on a slide eight and nine. By the end of the fourth quarter of 2024, the country's installed capacity reached 43,350 megawatts, which means a decrease of 1% or 423 megawatts, compared to the 43,773 megawatts recorded as of December the 31st of 2023. The variation results from the installation of new power facilities and reduction in cell capacity and adjustment and repowering to power plants already in operation. The contraction of 423 MW is decomposed as follows. The addition of 925 megawatts of renewable sources, of which 614 megawatts corresponds to wind farms. 307 megawatts to solar plants and 4 megawatts to biogas power plants.
Speaker Change: Now, let's skip to the Argentine electricity market picture of this quarter, but it will be shown on the slide eight and nine.
Speaker Change: By the end of the fourth quarter of 'twenty 'twenty four the country's installed capacity reached 43350 megawatts, which means a decrease of 1% or 423 megawatts compared to the 43.
Speaker Change: <unk> thousand 778 megawatts recorded as of December 31st of 2023.
Speaker Change: The variation results from the installation of new power facilities and production capacity and adjustments on Repowering two power plants already in operation.
Speaker Change: The contraction of 423 megawatt is composed as follows.
Speaker Change: The addition of 925 megawatt offer in all of our sources of which 614 megawatt corresponds to wind farm.
Speaker Change: 301, seven megawatt choose saw our plan.
Speaker Change: Four megawatt two biogas our plant.
Alejandro Diaz Lopez: then a reduction of 1195 MW in hydraulic sources and a decrease of 153 MW in thermal sources. where a contraction was recorded in gas turbines, steam turbines and diesel engines, being all partially upset by an addition. of Bombay SAI. It is worth to highlight that the decline of 1,195 megawatts in hydro installed capacity is basically explained by a recessive power available between Argentina and Paraguay. Since August the 2024, 50% of Chacirrietas installed capacity is allocated to Argentina where it used to be approximately 88% before the generation decreased 2% during the quarter on a year-over-year basis.
Speaker Change: Then.
Speaker Change: A reduction of 1195 megawatts in hydraulic sources.
Speaker Change: That's a decrease of <unk>.
Speaker Change: 153 megawatt in thermal sources, where a contraction was recorded in gas turbine steam.
Speaker Change: Steam turbines and diesel engine being or partially upset by an addition.
Speaker Change: <unk> combined cycle.
Speaker Change: It is worth to highlight that the decline of 1195 megawatt in high drawing some capacity is basically explained by a reassessment of chassis at that hour available.
Speaker Change: Between Argentina and by a wide.
Speaker Change: Since all of the 'twenty 'twenty four.
Speaker Change: 50% occupancy did that installed capacity is allocated to Argentina, where it used to be approximately 88% before them.
Generation decreased 2% during the quarter on a year over year basis.
Alejandro Diaz Lopez: This decrease was driven by nuclear and hydro generation, 48% and 30% respectively. Nuclear generation decreased basically by the two year maintenance shutdown of Atucha-1, which started in November. and a seasonal maintenance program of Atucha II carry on between the end of September and the beginning of December. Hydrogenation shrank due to a combination of two factors. the aforementioned change in the allocation of Yacyretas in salt capacity and energy generation upon Paraguay claim and a reduction of river flows, mostly in the Uruguay and Paraná rivers. Finally, renewable and thermal generation rose 13% and 24% respectively. The growth in thermal generation led to higher fuel consumption.
Speaker Change: This decrease was driven by nuclear and hydro generation, 48% and 30% respectively.
Speaker Change: Okay, a generation decreased basically by the two year maintenance shutdown at the Jan one which started in November.
Speaker Change: It isn't a maintenance program of auto just to carry on between at the end of September and the beginning of December.
Speaker Change: Hydro generation was frankly due to a combination of two factors.
Speaker Change: The aforementioned change in delegation options you did that in some capacity and amortization innovation upon Ottawa claim.
Speaker Change: And a reduction of river flows mostly in the U Y ear button a rebirth.
Speaker Change: Finally, renewable power generation rose, 13%, 24% respectively.
Speaker Change: The growth in thermal generation led to higher fuel consumption.
Alejandro Diaz Lopez: 65% rise in gas oil, 9% in natural gas, and 3% in fuel. Focusing now on the demand, as you can see, electricity demand kept almost flat during the fourth quarter of 2024, vis-a-vis the fourth quarter of 2023. There was a slight contraction in residential consumption, almost upset by commercial and major demand. Higher temperatures recorded during October of 2024, in comparison to the same month of 2023, prompt higher retail consumption, which shrank then in November and December as a result of milder temperatures compared to equal month of 2023. For the whole 2024 residential demand barely grew 0.4%.
65% rise in gas oil, 9% natural gas and 30% in pure always.
Speaker Change: Focusing now on the demand as you can see electricity demand kept almost flat during the fourth quarter of 2024 vis vis the.
Speaker Change: In the fourth quarter of 'twenty three.
Speaker Change: There was a slight contraction in residential is on Samsung almost offset by commercial a measure of demand.
Speaker Change: Higher temperatures recording.
Speaker Change: In October of 'twenty 'twenty four in comparison to the same month offering deep industry from higher retail consumption, which shrunk then in November and December as a result of mills that are temperatures compared to equal amounts of 23.
Speaker Change: Or the whole 2024 residential demand barely grew 0.4%.
Speaker Change: And mayor and commercial demand, both ending 24 with a 1% decrease in their consumption, though it sounds positive interrupt our growth rate were observed during the second half of the year, especially for food and beverage oil and gas online.
Alejandro Diaz Lopez: and Mayor and Commercial Demands both ending 2024 with a 1% decrease in their consumption, though some positive inter-runner growth rates were observed during the second half of the year, especially for food and beverage, oil and gas and mining. Finally, the electricity trade balance resulted in a net import situation during the whole quarter, with a peak in November. in line with the demand trend showcased above, net imports were recorded in October and November being substantially lower in December.
Speaker Change: Finally, the electricity trade bond were so good in the met in person equation during the whole quarter with the peak in November.
Speaker Change: In line with the demand trend showcase have a net.
Speaker Change: Net imports were recorded in October and November being substantially lower in December.
Alejandro Diaz Lopez: We now go to slide 10 to our key operating indicators for the quarter. We can see that electricity generated by Central Puerto rose 5% to 5,416 GWh compared to 5,168 GWh during the fourth quarter of 2023. Hydro energy generation from Piedra del Águila dropped 31%, reaching 1,164 GWh from 1,678 GWh during the fourth quarter of 2023. This decline was primarily due to a 7% reduction in water levels of the Cochoncura River and 22% in the Limay River, which both resulted in lower availability of water for generation. Wind generation decreased 3% reaching 396 GWh during the fourth quarter of 2024 compared to 410 GWh during the same period of 2023.
We now go to slide 10 to our key operating indicators for the quarter.
Speaker Change: We can see that electricity generated by since our port rose, 5% to 5416 gigawatt hour compared to 5168 gigawatt hours during the fourth quarter of 2023.
Speaker Change: Hydro energy generation from Bill right now you're not dropped 31%, reaching 1164 gigawatt hour from 1678 gigawatt hour during the fourth quarter of 2003.
Speaker Change: This decline was primarily due to <unk>.
Speaker Change: 7% reduction what are the levers of the question on Wood River and 22% in the Lima River, which both Brussels and lower availability of water organization.
Speaker Change: Wind generation decreased 3%, reaching.
Speaker Change: 396 gigawatt hour during the fourth quarter of 2024 compared to 410 gigawatt hour during the same period of 2023.
Alejandro Diaz Lopez: This decline was mainly due to lower wind resource and also some maintenance work. On the other hand, solar energy generation reached 88 gigawatt hour during the period under analysis, compared to 73 gigawatt hour during the fourth quarter of 2023, basically as a result of higher resource availability. Thermal generation increased 25% during the fourth quarter of 2024, compared to the fourth quarter of 2023, reaching 3,767 GWh from 3,007 GWh. The growth was mainly due to higher dispatch of some steam turbines in Puerto SA and some steam and gas turbines in Lujan de Cuyo, as well as higher generation of the Brigadier Lopez Open Cycle and the Combined Cycle of Santa Cruz.
Speaker Change: This decline was mainly due to lower wind resource and also some maintenance works.
Speaker Change: On the other hand solar energy generation and reach a T. A gigawatt hour during.
Speaker Change: The period under analysis compared to 73 gigawatt hour during the fourth quarter of 2023, basically as a result of higher results how readability.
Speaker Change: Okay.
Speaker Change: Total amount of generation increased 25% during the fourth quarter of 'twenty 'twenty four compared to the fourth quarter of 2023.
Speaker Change: <unk> 3767 gigawatt hour.
Speaker Change: From 3007 gigawatt hour.
Speaker Change: The growth was mainly due to higher dispatch of some.
Speaker Change: It seems irvine important beside him some steam and gas turbines on the closure as well as higher isn't in Asia of somebody Gotta Gotta Love Us open cycle.
Speaker Change: Combined cycle of Santa Fe.
Alejandro Diaz Lopez: Also a higher availability and dispatch were recorded for the Mitsubishi Combined Cycle located in Costa Rica. Finally, it is worth to highlight that during the quarter some important maintenance programs were carried out in steam turbines and combined cycles, especially that executed in the combined cycle located in Nuevo Puerto. that maintenance lasted more than expected due to some findings recorded in the steam turbine and the generator while performing yoga holds. These findings were partially settled and are expected to be completed, solved out during the next maintenance program to be carried out next September.
Speaker Change: Also higher availability and dispatch were recorded for the Mitsubishi combined cycle located in coffee outside.
Speaker Change: Okay.
Speaker Change: Finally, it is worth to highlight that during the quarter some important maintenance program.
Speaker Change: Where carryout steam turbines and combined cycle, especially.
Speaker Change: That executed in the combined cycle.
In Florida.
Speaker Change: That means that lasted more than expected due to some finally recorded in.
Speaker Change: In the steam turbine generator, while performing yoga hole.
Speaker Change: These findings were partially settle and are expected to be completed during the next maintenance program to be Carryout next September.
Alejandro Diaz Lopez: Notwithstanding this, the combined cycle is 100% Now let's move to our Revenues Breakdown As you can see on slide 11, this amounted to $168 million in the border as compared to $98 million in the same period of 2023. The variation in revenues is a consequence mainly of a 61% or $29 million increase. In a spot market revenues driven by a cash effect on the gap between currency devaluation and spot communication increase. Higher thermal generation made in steam turbines, the Brigadier Lopez OpenCycle plant and Costanera-Mitsubishi Combined Cycle. Finally a non-cash effect on the gap between currency devaluation and inflation primarily attributed to the one-time devaluation of December of 2023.
Speaker Change: Some of these the combined cycle is 100% operative.
Speaker Change: Now, let's move to our revenue breakdown.
Speaker Change: As you can see on slide 11, these amounted to $168 million in the water as compared to $98 million in the same period of 2023.
Speaker Change: The variation in revenues is a consequence, mainly off a 61% or $29 million increase.
Speaker Change: In a spot market revenues driven by a cash effect on the gap between currency devaluation on the spot combination increases.
Speaker Change: Higher thermal generation, mainly in steam turbines.
Speaker Change: <unk> is open cycle plan <unk> Mitsubishi combined cycle.
Speaker Change: Finally, a noncash effect on the gap between currency devaluation inflation, primarily attributed to the onetime devaluation of December of <unk>.
Speaker Change: Then we have 62% or $27 million increase in sales under contracts driven by higher solar generation up one is doing this on a farm.
Alejandro Diaz Lopez: Then we have a 62% or $27 million increase in sales under contract driven by higher solar generation of 1.3 solar farms, higher energy sales of cogeneration units, especially in the San Lorenzo plant, and also a non-cash effect on the gap between currency devaluation and inflation. Those were all partially offset by lower wind generation, mainly due to lower wind resource and extraordinary maintenance. Then we have a 109% or $4 million increase in steam sales driven by higher steam production in both Lujan de Cuyo and San Lorenzo facilities but substantially in the later one as a consequence of higher demand from clients.
Speaker Change: Energy sales of cogeneration unit, especially in China, the hiring plan.
Speaker Change: And also a non cash effect on the gap between currency devaluation and inflation.
Speaker Change: Those were all partially offset by lower wind generation, mainly due to lower wind resource and extraordinary maintenance.
Speaker Change: Then we have.
Speaker Change: 109% or $4 million increase in sales driven by higher steam production involved and the courtyard.
Speaker Change: Facilities.
Speaker Change: Substantially in the later one as a consequence of higher demand from price.
Alejandro Diaz Lopez: As we commented in our last urban session, we expect that steam demand will continue to be higher in the future, showing a new trend due to new economic activity levels in some industries, remarkably in oil and gas.
Speaker Change: As we commented in our last earnings session. We expect that demand will continue to be higher in the future showing in Ukraine due to new economic activity levels in some industries remarkably in oil and gas.
Speaker Change: Yeah.
Speaker Change: Okay.
Alejandro Diaz Lopez: On slide 12, we can see the dynamics of our adjusted FPTA. During the fourth quarter of 2024, the group's adjusted FDA amounted to $65 million, rising 44% or $20 million when compared to the fourth quarter of 2023. When analyzing the adjusted EVTA, we can observe that the variation is mainly explained by The previously stated higher aggregate sales driven by spot sales and sales under contract. Spot rumination increases higher than currency devaluation and a positive non-cash effect on the gap between currency devaluation and inflation. Then we have a $43 million increase in cost of sales, explained basically by a rise in maintenance expenses and a real appreciation of the Argentine people.
Speaker Change: On slide 12, we can see the dynamic of our adjusted EBITDA.
Speaker Change: During the fourth quarter of 2024, the group's adjusted EBITDA amounted to $65 million.
Speaker Change: Right.
Speaker Change: 4% or $20 million when compared to the fourth quarter of 'twenty three.
Speaker Change: When analyzing the adjusted EBITDA, we can observe that differentiation is mainly explained by.
Speaker Change: The previous or the incentives higher aggregate sales driven by sale sales under contract.
Speaker Change: Spuds remuneration increases higher bank currency devaluation, and the positive noncash effect on the gap between currency devaluation pledge.
Speaker Change: Dan we have a $43 million increase in cost of sales explained basically by arise maintain and expand the phase a real appreciation of the Argentine peso.
Alejandro Diaz Lopez: On the other hand, production costs were also negatively impacted by a non-cash effect on the gap between currency devaluation and inflation. SG&A rose 11 million dollars mainly by higher fees and compensation for services related to one-time projects and the real appreciation of the Argentine people. Similar to production costs, HG&A were also negatively impacted by the so-called non-cash effect due to the gap between currency devaluation and inflation. Finally, other operating results net were positive and higher than the fourth quarter of 2023 figures by four million dollars. Basically, as a consequence of insurance recovery, which was partially offset by lower interest from clients due to lower commercial delay, the effect of the resolution 58 and the negative non-cash effect on the gap between currency devaluation and inflation.
Speaker Change: On the other hand production costs were also negatively impacted by a noncash effect on the gap between currency devaluations inflation.
Speaker Change: SG&A rose $11 million.
Speaker Change: Mainly by.
Higher fees and compensation for services related to one time project.
Speaker Change: And the real appreciation of the auction time fish.
Speaker Change: Similar to production cost.
Speaker Change: Were also negatively impacted by the so called noncash effect.
Speaker Change: Due to the gap between currency devaluation and inflation.
Speaker Change: Finally, our operating results net we're cautiously and higher than the fourth quarter of 2023 figures by $4 million.
Speaker Change: Basically as a consequence.
Speaker Change: Insurance recovery, which was partially upset by lower interest from clients you to lower coming Saturday night.
Speaker Change: The effect of the.
Speaker Change: The resolution of a D a M.
Speaker Change: The negative noncash effect on the gap between currency devaluation and inflation.
Speaker Change: Yeah.
Speaker Change: Yeah.
Speaker Change: Moving to the next slide the consolidated net income.
Alejandro Diaz Lopez: Moving to the next slide, the consolidated net income. During the fourth quarter of 2024, Central Puerto's net income amounted to a loss of $28 million. This is basically the result of negative impacts driven by non-cash effects. We should highlight an impairment of almost $100 million, higher DNA, and some one-time gains from M&A transactions registered in 2023. Then we have lower FONI FX difference and interest due to lower FX variation and some positive effects were recorded by the aforementioned adjusted EBITDA dynamic and net financial results which were driven by lower FX differences on financial liabilities and lower bank commission.
Speaker Change: During the fourth quarter of 2024th quarter net income amounted to a loss of $28 million.
Speaker Change: It is basically the result of negative impact driven by noncash effect.
Speaker Change: We should highlight and empowerment almost $100 million.
Speaker Change: Higher DNA.
Speaker Change: Some one time gains from M&A transactional Richie in 'twenty three.
Speaker Change: These effects were partially offset by better result, driven by the change we're chasing power off the currency due to lower inflation and higher <unk>.
Speaker Change: The Asia and buy your lunch.
Speaker Change: Yes.
Speaker Change: Then we have lower Bonnie FX difference and interest due to a lower valuation.
Speaker Change: Positive effect were regarded by the aforementioned adjusted EBITDA dynamics.
Speaker Change: Net financial herself, which were driven by lower FX differences on financial liabilities are lower bank commissions.
Alejandro Diaz Lopez: Finally, income tax was higher due to higher income.
Speaker Change: Finally income tax was higher due to a.
Speaker Change: Higher income before tax.
Alejandro Diaz Lopez: Lastly, on slide 14, we have the cash flow dynamic during the 12th month of 2024. Net cash provided by operating activities was $250 million during 2024. This cash flow arises mainly from net income for the period before income tax, collection on interest from clients. insurance recovery, being all partially upset by income tax and other taxes. Net cash used by investing activities was $160 million during 2024. This amount is mainly explained by acquisitions of property, plant and equipment and inventory and acquisitions of other financial assets. being all partially upset by dividends collected and the sale of property plants.
Speaker Change: Lastly on slide 14, we have.
Speaker Change: The cash flow dynamic during the months of 'twenty 'twenty four.
Speaker Change: Net cash provided by operating activities was $215 million.
Speaker Change: During 2024.
Speaker Change: These cash flow arises mainly from net income for the period before income tax collection in.
Speaker Change: Interest from clients.
Speaker Change: Europes recovery.
Speaker Change: Bean oil, partially offset by income tax and other taxes payment.
Speaker Change: Net cash used by investing activities was $160 million during 2024.
Speaker Change: This amount is mainly explained by a precision property plan equipment inventory.
Speaker Change: And acquisitions.
Speaker Change: All our financial outlook.
Speaker Change: Being partially offset by dividends collected and the sale of <unk>.
Speaker Change: Property plant and equipment.
Speaker Change: Net cash used by financing activities was 100, I think millions of dollars during 2024.
Alejandro Diaz Lopez: Net cash used by financing activities was $106 million during 2024. This is basically the result of long-term debt repayment, interest, and other long-term debt costs, pay, and dividends paid, being all partially offset by long-term loan receipts and net overdraft receipts. Consequently, our cash position as of December 31st of 2024 amounted to $4 million. If financial assets are included, our total current liquidity amounts to $233 million.
Speaker Change: It is basically the result of long term debt repayments interests and other long term debt cost PE and dividend space being or partially upset by a long term loan received.
Speaker Change: Net overdraft perceive.
Speaker Change: Consequently, our cash position as of December 31st of 'twenty, 'twenty four amounted to $4 million.
If financial assets are included our total current liquidity amounted to $233 million.
Speaker Change: With this I conclude the presentation.
Alejandro Diaz Lopez: With this, I conclude the presentation. Now we invite you to ask any question to our team. Thank you very much for your attention. Thank you very much for the presentation.
Now we've allowed you to ask any questions to our team.
You very much for your attention.
Speaker Change: Yes.
Speaker Change: Thank you very much for the presentation. We will now begin the Q&A session for investors and analysts if you wish to ask a question. Please press the button reaction and then click on raised hand. If your question has already been asked or you can leave the queue by clicking on foot handout.
Unknown Executive: We will now begin the Q&A section for investors and analysts. If you wish to ask a question, please press the button Reaction and then click on Raise Hand. If your question has already been answered, you can leave the queue by clicking on Put Hand Down.
Unknown Executive: Please wait while we pull for questions. Again, if you have a question, please press the button reaction and then click on raise hand.
Speaker Change: Please wait while we pull for questions.
Speaker Change: Again, if you have a question please press the button reaction and.
Speaker Change: And then click on race hand.
Speaker Change: Our first question comes from.
Unknown Executive: Our first question comes from... Tomas Francisco with Balance. Yes, yes, yes, Tomás.
Francisco: Dumbass Francisco with balance.
Francisco: Hello.
Francisco: You can hear me greatly.
Francisco: Yes, yes, yes.
Tomas Francisco: Okay, good morning to all.
Francisco: In the morning for democracy.
Tomas Rutin: I'm Tomás Rutin from Matas Cattaruzzi.
Speaker Change: The marketing team from MAZ capital I want to ask a question. So the first one is what do you perceive spectrum center political from the new regulations.
Tomas Rutin: I want to ask three questions. So the first one is what impact do you expect from Central Puerto from the new regulations? that aim to liberalize the power sector.
Speaker Change: Does aimed to liberalize the power sector. What is your view on this topic and good their interest okay sort of a screen basket.
Alejandro Diaz Lopez: What is your view on this topic and the future interest of generators? Okay. Thank you. Thank you for the question, Tomas. We are seeing different phases of the deregulation that the government are trying to establish, and we are talking with them. The first one was the Resolution 21 that we explained in the script. And this is a minimum deregulation that allowed us to start buying some fuels and gas, which is very important for us because, as you know, right now all the fuel and gas is provided by CAMESA. And in the past we do that, and we can have some efficiency because, as you know, we are the biggest one, and we have a very powerful chase.
Speaker Change: Okay. Thank you. Thank you for the question from Us.
We are seeing in different phases of the regulation that the government are trying to establish and we're talking with them. The first one was a good resolution to anyone.
Speaker Change: We explained in the discrete.
Speaker Change: These he said, it's a meaningful deregulation that allowed us to start volumes.
Speaker Change: Some fuel syngas, which is very important for us because as you know.
Speaker Change: Right now.
Speaker Change: All of the fuel and gas is provided by <unk>.
Speaker Change: And in the past, we do that and we can have some efficiency because as you know.
Speaker Change: We are the biggest one and we have a very power.
Speaker Change: Power Chase.
Speaker Change: Okay.
Alejandro Diaz Lopez: quantity of gas and fuel. So we are expecting to start buying our own fuel since March, since this month. Minimum amounts because as you know, CAMESA have already set contract with the gas providers, the plant gas, so the volumes out of that are right now small volumes. But we are start doing that. So it's the first phase of the regulation, start buying fuel and gas for us. I mean, this is very, very good because as I mentioned, we can do. or we can have advantages there in terms of new capacity. The Resolution 21 establishes that with new capacity, we can start selling power to private VPAs.
Speaker Change: Quantity of gas and fuel. So we are expecting two to istar value without fuels since March since these months.
Speaker Change: Meaningful amounts because as you know is companies that have already said contract with the gas providers planned gas so.
Speaker Change: Volumes.
Speaker Change: Out of that.
Speaker Change: Right now with small small volumes.
Speaker Change: But we are doing Doug so the first phase of the regulations that are buying fuel and gas for us I mean this is very very good because as I mentioned, we can do.
Speaker Change: But we can cover advantages there.
Speaker Change: In terms of new capacity.
Speaker Change: David No resolution to anyone in studies that we've done with new capacity, we're going to start.
Speaker Change: Selling power to private Ppas obesity.
Alejandro Diaz Lopez: So this is a good start. Of course, it's not easy because right now the demand or you have the demand uncovered by renewables. So we are not expecting perhaps too much new power plants building in the Resolution 21. And the other the other changes that the government are talking about is the possibility of have certain conditions of marginality prices in the future. We are talking about in October have a new regulation in place, a full new regulation in place, and there we can have some advantages of our combined cycle that are selling right now in the spot market.
Speaker Change: A good a good start of course is not easy because right now.
Speaker Change: Demand.
Speaker Change: Are you the demand out of cooler by renewables. So we are not expecting perhaps too much.
Speaker Change: Power plants built in the resolution 21.
And the other the other changes that the government are talking about is the possibility of.
Speaker Change: Certain conditions of marginality, Brian <unk>.
Speaker Change: In the future we are talking about.
Speaker Change: October would have a new regulation in place a whole new regulation in place and data we can have some advantages.
Speaker Change: Our combined cycles that are selling right now in the spot market. So we are seeing some improvement there.
Alejandro Diaz Lopez: So we are seeing some improvement there. And since November this year, we can have some improvement in our remuneration, which is right now only at the spot market, and we can have some, or we can receive some additional prices in terms of some kind of not pure marginalism but some kind of marginalism that the government are willing to to set to establish some benefits to them to the equipment that are more efficient and have less or yes are more efficient and have better availability. So we are seeing there are some important opportunities for our most efficient combined cycles.
Speaker Change: Since November <unk>, we can improve.
Speaker Change: Improvement in our remuneration, which is right now only in the spot market. We can have some.
Speaker Change: All we can receive some additional price in terms of of some kind of not viewer marginally soon but at the same time off marginally some that the government matter willing to said to establish.
Speaker Change: Benefits to them.
Speaker Change: We've been that Theyre more efficient government list.
Speaker Change: Or are you more efficient.
Speaker Change: So we are seeing there are some important.
Speaker Change: Do any of these for our most efficient combined cycles.
Alejandro Diaz Lopez: And as I mentioned, we have some opportunities in terms of buying our own fuel, which is small right now, but I think in November, December could be more important when the government establishes the full deregulation scheme. And so I am optimistic about that. I think they are in the good path. They are trying to establish more competition in the sector, not only in the energy generation sector, in the gas sector also. And I think we are in the good path. Of course, it's 20 years of regulation is not easy to remove in only one year, but I think we have some opportunities in order to start selling a new capacity to the to have a spot or have an issue.
Speaker Change: And as I mentioned, we have some opportunities in terms of buying our own fuel which is <unk>.
Speaker Change: <unk> right now, but I think in November December.
Speaker Change: Could be more important.
When the government established the full deregulation scheme.
Speaker Change: So I am optimistic on debt <unk> and the <unk>.
Speaker Change: And we are trying to establish more calm.
Speaker Change: Competition in the sector not only in the NDA.
Speaker Change: In the energy generation sector in the gas sector also.
Speaker Change: And I think we have.
Speaker Change: We I think they would pass of causes.
Speaker Change: 20 years of regulation is not easy to remove in only one year, but I think we have some opportunities in order to start selling and new capacity.
Speaker Change: To support our recover.
Speaker Change: NYCHA.
Alejandro Diaz Lopez: transactions in terms of new capacity, in terms of new capacity, but also in terms of the existing capacity, have better prices for the efficient equipment that allowed us to keep maintaining those equipment and to improve those equipment, which is already 20 years old. So we need to improve that. We need to maintain that. So we are seeing opportunities there and having more flexibility, not only to go to the spot, but have some or catch some marginal prices somehow. Of fuel also we are we are looking to looking forward to do that to to to have the our own fuel and gas provision.
Transactions intestinal new capacity in term of new capacity.
Speaker Change: Also in terms of the existing capacity at better prices.
Speaker Change: As far the efficient equipment that allows us to keep maintain dose with minute improved dosing with minute, which is already 20 years old. So we need to improve that we need to maintain that so we are seeing opportunities there.
Speaker Change: Having more flexible.
Speaker Change: Flexibility not only broadly exposed by the Cubs.
Speaker Change: Got some.
Speaker Change: Martino.
Speaker Change: And somehow.
Speaker Change: In terms of.
Speaker Change: Our fuel also we are we are looking to looking forward to do that due to our.
Speaker Change: Our own fuel and gas provisions so we see some.
Alejandro Diaz Lopez: So we see some some also some improvement there in our remuneration. Okay, thank you.
Speaker Change: Some old saw some improvement there seen our win ratio.
Speaker Change: Okay. Thank you.
Tomas Rutin: The second one is You made some small investment in mining, and you also have the transformation project with FG Pepe Luz, and probably some generation projects in the portfolio.
Speaker Change: The fifth one is.
Speaker Change: You made it almost more different mining and you also have Detroit, Michigan, principally ebay revenues are broadly.
Speaker Change: Broadly someone's innovation products in their portfolio.
Alejandro Diaz Lopez: Will we see more aggressive investment in this year? Well, first we have the, you don't mention it, but we have an option for battery supply from CAMESA. We are looking first, we are looking there actively, we are looking to participate. Of course, it's a technology that we are entering, it's not a technology that we know, but we are looking forward to participating in that option first this May. And then, of course, we are we are working heavily with YPF to develop the transmission line in the Puna. So this is another important project for us. And the cogeneration depends on not only the regulation.
Speaker Change: Will we see more aggressive investment this year.
Speaker Change: Well.
Speaker Change: First we have the you have mentioned it but we have.
Speaker Change: I know shuffler for battery supply from Gamesa.
Speaker Change: We are looking first we're looking there.
Speaker Change: Absolutely. We are looking to participate of course is a technology that we are entering snapping technology that we know, but we are looking forward to participating in that auction first as it may.
Speaker Change: And then of course, we are.
Speaker Change: We are working heavily we might be able to develop the transmission line.
Speaker Change: In the Buena. So this is another important.
Speaker Change: Russia for us.
Speaker Change: And the cogeneration the band song.
Alejandro Diaz Lopez: The regulation, as I mentioned, established the possibility to establish a private contract with the demand for new capacity. The thing about that is we need to have the demand. When you think about the cogeneration, the most important thing for the outtaker is the steam, but we also need to have the demand for the electricity to cover the complete business. So we are looking for that. We have one or two projects we are looking at, but it's not easy to set the whole package, to set the steam contract and to set the electricity contract. So it perhaps takes more time than the other assets that we are looking at or the other projects that we are looking at.
Speaker Change: Certainly the regulation the emulation as I mentioned I started it was related to <unk>.
Speaker Change: To establish a private contract with a demand for new capacity.
Speaker Change: The thing about that is we need to have the demand when you think about that generate cogeneration. The most important thing for the for the I.
Speaker Change: I'll take it as it is.
Speaker Change: But we also need to have the demand.
Speaker Change: I will increasingly do to cover that.
Speaker Change: The complete business. So we are looking for that we have a one or two brushy some.
Speaker Change: We are looking at but it's not easy to set the whole package to sell the steam contract Vento said, Dan and.
Speaker Change: And then <unk> the contract to perhaps take more time.
Speaker Change: And the other assets that we're looking at going to appreciate that we are making.
Alejandro Diaz Lopez: And in the mining case, we already invest in developing projects, and they are fully founded for this phase of developing, and we are not seeing additional capex in this year for those projects. Okay, thank you.
Speaker Change: And the mining in the mining case, we already embedded in the in developing brushy.
They are fully when he founded for this phase of the of developing.
Speaker Change: And we are not seeing it.
Speaker Change: Capex in Bcf order those one of those approaches.
Speaker Change: Okay. Thank you.
Tomas Rutin: And the last one is, any news on the height of auctions? Well, we are talking with the orb and they are moving forward, not as fast as they planned at the beginning. They think that they could have the auction in place on February, but I think they are taking, I think it needs to be more, but they are... Confident that they are going to have the auction in place between April and May, and then they can move forward with that. But we are not having a specific input about how they are planning to do it.
Speaker Change: The last one is.
Speaker Change: Any news on the hydro options.
Speaker Change: Well, we are talking with the arm and they are going for.
Speaker Change: Not as fast as the plan at the beginning.
Speaker Change: Seeing that they could have the auction.
Speaker Change: In place on February, but I think they are taking I think it needs to be more but the other.
Speaker Change: Confident that youre going to have.
Speaker Change: The auction in place between between April and May.
Speaker Change: Then they can become move forward with that so, but we are not having a specific inputs have out how they are planning to do it and it would be I think even in the PPA, we do we do.
Alejandro Diaz Lopez: And if they are thinking in a PPA, with the... with CAMESA, with the Secretary of Energy or they are thinking more in contracts with the with the demand or distribution companies. We are not ready there, we don't have that information yet. But we know that they're willing to move forward April, May this year.
Speaker Change: We've commenced with the secretary of energy or.
Maureen: Thank you Maureen.
Speaker Change: Contracts, we do with it.
Speaker Change: The man or distribution companies, we are not ready here, we don't have that information yet.
But we know that they are willing to move for a brief made easier.
Speaker Change: Got it thank you.
Unknown Executive: Thank you. Again, if you have a question, please click on raise hand. Please hold while we pull for questions.
Speaker Change: Okay.
Speaker Change: Again, if you have a question please click on raise hand.
Speaker Change: Please hold while we poll for questions.
Mr. Fernando: This concludes our Q&A session I would like to turn the conference back over to Mr. Fernando <unk> for any closing remarks.
Fernando Bonnet: This concludes our Q&A session.
Fernando Bonnet: I would like to turn the conference back over to Mr. Fernando Bonnet for any closing remarks. Thank you, everyone, for your interest in Central Puerto. We encourage you to call us for any information that you may need.
Thank you everyone for your existing center blood to encourage you to call us for any information that you may be have a great day.
Unknown Executive: Have a great day. This does conclude today's presentation. We wish you a good day.
Mr. Fernando: This does conclude today's presentation, we wish you a good day.
Mr. Fernando: Yeah.
Mr. Fernando: Okay.
Mr. Fernando: Okay.
Unknown Executive: Goodbye.
Mr. Fernando: Goodbye.