Q2 2025 Central Puerto SA Earnings Call

You have joined the meeting as an attendee and will be muted throughout the meeting.

Good morning, ladies and gentlemen, welcome to Central Puerto second quarter of 2025 earnings conference call.

A slide presentation is accompanied by today's webcast and will also be available on the investor section of the company's website.

Www.cento.com investors.

All participants will be in 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.cal puerto.com.

In addition, a replay of today's call will be available in the upcoming days by accessing the webcast link in the same section of the Central Puerto website.

Our host today will be Mr. Fit Central, Puerto CEO Mr. The Company CFO Mrs. Maria fur head of investor relations and Mr. Alejandra Diaz Lopez head of corporate finance.

Maria la, please go ahead.

Good day.

Thank you. Very

Before we begin, Please be aware that this presentation contains 4 looking statements based on current outlooks and assumptions. Such statements, involve risks and uncertainties, that may that may cause actual results to defer materially.

Also US dollar figures presented, may be impacted at a non-cash level. As our financial statements, everybody in Argentine pesos and subsequently converted into US dollars, solely for comparability and Analysis purposes.

Investors are advised to review the full disclaimer and financial statements available on Central Portals' website and public filings.

Adjusted IITA is a non-FRS measure and should not be considered separately. So please refer to our financial statements.

And above 35% compared to the second quarter of 2024.

Last month, adjusted EBITDA was $309.9 million, which is 8% above the full year 2024.

In the second quarter, the collections were $17.2 million.

Total generation volumes in this quarter were 4,372 gigawatt-hours, a 24% decrease compared to Q4 and a 12% decline year on year.

The decrease compared to the previous quarter is primarily due to the one-time schedule, upgrade, and maintenance of central Costas, Mishi combined cycle, and the steam throughput by 6 from central Puerto complex.

Revenues in this quarter were $179.6 million. This represents a decrease of 8% compared to the previous quarter and an increase of 7% compared to the same quarter of the previous year.

From Total revenues in this quarter. 89.6% of total revenues, came from energy sales.

Tax revenues in this quarter decreased from the previous quarter due to the seasonality of spot capacity charges and lower volumes, as discussed before.

These effects were partially offset by additional self-managed fuel, procurement from the T6 plant, and other fields.

On the regulatory front, spot prices in pesos adjusted every month. For inflation, as stated by Energy, it is greater yet, adding up to a compounded 5.1% for the quarter.

And in addition still on the regulatory front latter. Say the national executive branch released, a degree 476 with farther definitions on hydro concessions.

Which we will re review.

In the following slide.

Expenditures in the semester.

$102.4 million were mainly allocated to the 155 megawatts of installed capacity. We are building.

From this additional capacity, 140 megawatts will come from the closing of the Brigadier López combined cycle.

While 15 megawatts from the San Carlos, Soler project. Both projects were an a, at an approximate 80% completion. At the end of the Quad, at the end of the quarter, with an expected Co before year end

Finally, our solid financial position is reflected in the balance statement of the quarter, with a resulting net leverage ratio of 0.56 times the last 12 months adjusted. Evita,

As discussed before, the Energy Secretary has allowed monthly adjustments to peso-denominated electricity spot prices to reflect inflation.

Regarding the Pila concession extension, last Thursday, the national executive branch issued decree number 476.

This degree established a new set of terms and a required payment for an adhesion agreement.

It also granted an additional 90-day period for the current concession and opens the possibility for it to be extended until the end of the year.

Second quarter, adjusted. If it that decrease 32% quarter over quarter mainly due to the seasonality of capacity charges, and the maintenance works in the costanera and central port of plants.

That impacted in lower revenues and additional Opex related to such maintenance works.

The resulting last 12 months adjusted, EBITDA is 8% above full year. 2024 adjusted EBITDA.

Also, to account for this quarter's results for Nim collections worth $17.2 million.

Power generation volumes for the quarter were impacted by Central Costas Mitsubishi combined cycle, with 1,200 kilowatt-hours below the previous quarter.

Also, the central part of steam turbine, 6 was below the previous quarter by 186 year W hours.

The average availability of steam turbines and gas turbines is 60%.

The steam production increased 20% in the second quarter compared to the previous quarter.

Total revenues were 176 us million while energy generation related revenues Were 160.9 Us million.

In the second quarter Sports revenues, were impacted by the seasonal capacity charges established under the resolutions 59 and 294.

This led to a quarter of a quarter Revenue, reduction of 19.2 million.

Additionally, the lower volume sold impacted in the energy component of sports, revenues, by 12.5 us million dollars.

This effects were partially offset by additional 18.4 us million dollars from self-manage field procurement for our T6 plant and other fuels as authorized and the resolution 21.

Spot pixel nominated prices represented 16% of total revenues and during the quarter such prices contained the party with the inflation and the exchange rate variation.

Our ongoing pipeline of projects is the Cornerstone of our growth strategy. Let's see, a thermal power project that this meeting completion.

With the closing of the Real Lopez combined cycle, we are adding 140 megawatt-hours to its current capacity, bringing the total installed capacity to 421 megawatt-hours.

Total project investment will be of approximately 185 us million dollars and we are on track for commercial operation in the fourth quarter of 2025.

Next, we have the sallow solar project which will deliver 15 megawatts of installed capacity with an estimated capex of 18, us million dollars.

Like we mentioned, Alejandro Lopez and Carlos are expected to be operational before year-end.

Finally, we turn to Alamos, a wind project plan for 430 megawatts with potential expansion to 150 megawatts.

Depending on Final Technology offers with an estimated investment of $130.

Or $50 million. Alamitos is currently in the building phase for power generation technology and engineering services.

Construction is scheduled to be in in the first quarter of 2026.

Also, Central Porto is participating in the battery storage Standard Process. We submitted bits for 150, megawatts through Central Porto, and 55 megawatts through Central Costa. The alma TV8 tender process is ongoing with final definitions expected by the end of August.

That also briefly touches on the iron concession extensions. Last Friday, the national executive branch released new conditions that are under our analysis at this moment.

As discussed earlier, our strong balance sheet, and financial flexibility is reflected in these figures. Our standing financial debt was 409 us million dollars as of June 13th. Cash cash. Cash, equivalents and Current financial assets. Violence was 235 us million dollars.

The resulting net leverage ratio was 0.56 times the last 12 months adjusted EBITDA.

Outstanding rate under the funding programs to add 166.5 us million dollars and it's been collected in monthly installments through May 2028.

Additionally, it is important to note that our capital expenditures for the semester were fully financed by our operating cash flow.

On the market overview, variations in the demand, reflect the, seasonal effect of the, of the second quarter of the Year, where the temperatures were milder compared to the previous quarter.

On the composition of the offer hydroelectric, power generation is being impacted by low water levels.

Total system in store capacity remains quite stable.

Now, to conclude, we would like to share our takeaways for the second quarter of the year.

Around 300 megawatts of info capacity reflects our active focus on growth opportunities with the Real Lopez combined cycle closing, the Sallow solar farm that is nearing conclusion, and the Alamito swim farm that is currently in the design phase.

We are also looking forward to the developments in the battery storage center process and idle consistent development.

On the operational front, we have highlighted our operational efficiency and availability at VA for high standards.

which are reflected in the central cost cycle maintenance works and the upgrade of the steam turbine 6 from Central Puerto as complex.

On the regulatory front, we expect additional government disclosure to the ongoing electricity Market. Reform, including economic seniors to expand, our self-manage procurement of fuels as allowed under resolution 21,

Thank you for your attention. Now, we can move to the Q&A session.

Thank you very much for the presentation. We will now begin the Q&A section for investors and analysts. If you wish to ask a question, please, click on raise hand.

If your question has already been answered, you can leave the queue by clicking on put handout.

Please hold while we pull for questions.

Our first question comes from Martin Adam, Fetch with Balance.

You can open your microphone.

Hi. Uh, can you hear me?

Yes, we can hear you, sir. Okay, thanks. Uh, well, thank you for the presentation. Uh, I have four questions. Uh, I would like to run them one by one, if that's okay.

The first 1 regarding of Canada, even though it was unscheduled maintenance, it seems that it cost a loss for Costa since Opex was higher than the revenues.

Uh, I was wondering if you could add a little bit of color on that, and if you expect to have, I don't know, an additional income from an insurance company or something like that to compensate for that loss. Thanks.

Hi.

Hi, Martin. Uh, we were able to hear you. We are having a few technical issues. Um, just a second, please.

We are having a few technical issues; please hold.

I, I

No. Hi. Yes. I can hear you. There is, like, an echo.

I think, can you hear me? Yeah. Perfect, thanks. Yes, thank you, and sorry for the inconvenience.

Maintenance.

We have in the maintenance. We have. We perform 2 Things, 2, important things. Once was was planned, which was the

The big maintenance of our GT 1 of our GTS which was the 8, a GT.

That was planned and was performed by Mitsubishi, but in the other hand, we perform an extraordinary maintenance in the boiler that was, uh, not planned. But that was performed in order to put the boiler in the condition and, and in our standards and Central portal, standards in the past, the previous owner was not.

Doing all the maintenance that we understand that they need to do in the in the boiler.

So, we perform a big maintenance on the 2 of the 2 GTS.

And that was extraordinary, but as a consequence that was a, a, a degradation during the operation. It's not something that was covered by by the by the insurance company. So we are not expecting recover that that money from the issuer company. But as I mentioned we put that 2 boiler in a in a in a good.

Perspective, for the operation in the next.

20 years. So it's something that we need to perform in order to have that combined cycle operating in in the central port of Standards with an availability over 90, 95%

And we expect that this is going to happen after the big maintenance that we perform.

Okay. Alright just to follow up on that. Uh how much will you say that it was the additional cost for these unplanned maintenance of the of the of the boiler?

is something around, uh,

18, 20 million.

Okay, great. Uh, then my second question is about the Alamos project. Um,

An issue. Perhaps it's something that we are very cautious and we expect that could be less as you mentioned.

But uh, yes. Perhaps talking talking about being cautious. Perhaps, we are we are taking

2 or 3 months, additionally, that we expected to really expect it.

Okay, great. Uh, then, uh, quick one. What's your capex expectation for the remainder of the year?

Well, we have some remaining capex for Bria Lopez around.

354 million and and small amount for S Carlos project which is I know 2 or 3 million dollars more and perhaps at the end of the year, if we can we can reach the we can accelerate as as we have been talking with Alamos, something related to

Yes, 20% of the total cost.

Okay, great. And my last question, then. As you mentioned, there was the extension of the hydrogen sessions.

GS. Yes. And I was wondering there. How, how much is the current contribution to FDA Ora and also regarding the auctions? I think that you should. You're probably also waiting for for the the new thermal auction. Uh I don't know if there's something planned for that.

In fact, I'm talking about the extension. In fact, our extension is not so relevant because we, we.

We previous extension and 29 of of December. So it's kind of 2 or 3 days the the new extension. So it's not that's a relevant, it's more relevant for the for the other concession that ends on on on August. And so it's not not so relevant. The, the current Theda of of p is around 35 million dollars.

Depending on how they are going to.

Adjust the tariff, you know, is something that happens every month but

It's something around $35 million, and depending on, of course, the inflows—water inflows—but it's around between $30 million and $35 million.

Year.

Okay, great and and you will wait um to see the the hydro auction at the end of the year. And also, I don't know if you have any news on on the new formal auction. I heard that there is some

Issues to get new new turbines, uh, and that could be a reason for for the delay.

New turbines. You refer to to hydro, or, or you are talking about terminal right now? No. Uh, both actually, uh, I mean, what do you expect, the new, the new hydrogen, new hydrogen to, to be placed. Uh, also if you heard something about the, the the possibility of a new thermal auction know in terms of hydro, I think they are, they are adjusting some, some things with the with the provinces new ken. And Andro that is perhaps what I what we heard about why is having some delays on launching. Uh, but well I think that the

Perhaps it will be solved at the end of the year, as you mentioned.

The, the new, the new decree that extend that the, the the, the conversation established that is the ending of the conversation is on December or when the government finalized the, the auction. So, the earlier, you know, so, uh, or the latest. Sorry, not the earlier, the latest

So, I don't know if they they can make all the process in in this month at the end of the year, it would be at the end of the year. If not, they don't need a new degree so they can automatically extend until the the timing that they've analyzed that the option. So I don't know we heard that they want to do it at earlier sooner. But uh I don't know, depending on, as I mentioned, depending on how they can agree that final points with the provinces and and so on.

And in terms of thermal, uh, they want to finish first the auction of the battery auctions and.

How the is the output about about that?

And then perhaps at the end of the year, or the beginning of the next year, we can start talking about the...

For capacity, we're installing in the critical points of the grid. Yeah.

Thank you, thank you very much. That's all on my side.

Thank you. Thank you for your interest.

Our next question comes from Julian, Casas with balance.

You can open your microphone, sir.

Hi, can you hear me fine?

Yes. Yes. Okay, I'm actually from Latin Security. So, no worries. Uh

I wanted to ask you if you could please walk us through how you wrote the $49 million in gross debt figure that you mentioned before.

Okay. Uh, okay. You want to go through it?

Uh, yes. If you don't mind.

Yeah.

you have the

For the second, please. Yes, sure.

Hello.

Hi. Yes, yes. Hi. Okay. We have around $100 million loans, Central Point 11.

And then we have another $50 million in Central, Costa.

Regarding to this, we see.

Financing.

Okay. The rest of the amount is launched at the succeeded level at project finance loan with Tire, mainly with IC and IB.

For approximately $100 million and $50 million.

Okay, thank you very much.

So, for the delay, but we have no, no. Don't worry. It was a tough question. Sorry.

Again, if you have a question, please press the button, react, and then click on raise hand.

This concludes our Q&A session, I would like to turn a conference back over to Mr. Fernando bond for any closing remarks

Thank you to everyone for your interest in central Porto. We encourage you to call us for any information that you may need. Have a great day.

This concludes today's presentation. You may now disconnect and have a nice day.