Central Puerto S.A 6-K, filed Aug 27, 2020
Central Puerto S.A. (CEPU)
6-K
2020-08-27
For: 2020-08-26
View Original
Added on
April 11, 2026
About this 6-K
Central Puerto S.A filed this 6-K on August 27, 2020.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
under the Securities Exchange Act of 1934
For the month of August, 2020
Commission File Number: 001-38376
Central Puerto S.A.
(Exact name of registrant as specified in its charter)
Port Central S.A.
(Translation of registrant’s name into English)
Avenida Thomas Edison 2701
C1104BAB Buenos Aires
Republic of Argentina
+54 (11) 4317-5000
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file
annual reports under cover Form 20-F or Form
40-F.
Form
20-F ☒ Form
40-F ☐
Indicate by check mark if the registrant is submitting the Form 6-K
in paper as permitted by Regulation S-T Rule
101(b)(1):
Yes
☐ No
☒
Indicate by check mark if the registrant is submitting the Form 6-K
in paper as permitted by Regulation S-T Rule
101(b)(7):
Yes
☐ No
☒
CENTRAL PUERTO
S.A.
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
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Central Puerto S.A.
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Date:
August 26, 2020
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By:
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/s/
FERNANDO BONNET
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Name:
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Fernando
Bonnet
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Title:
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Attorney-in-Fact
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Exhibit
99.1
Results for the Quarter and First Half
Ended on June 30, 2020
Central Puerto: 2Q2020 Results
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Buenos Aires, August 26 - Central Puerto S.A (“Central
Puerto” or the “Company”) (NYSE: CEPU), a leading
power generation company in Argentina, reports its consolidated
financial results for the Second Quarter 2020
(“Second Quarter” or
“2Q2020”, and “First Half” or
“1H2020”, respectively).
A conference call to discuss the results of the Second Quarter 2020
will be held on August 27, 2020 at 10:00
Eastern Time (see details
below). All information provided is presented on a consolidated
basis, unless otherwise stated.
Financial statements as of and for the quarter and six-month period
ended on June 30, 2020 include
the effects of the inflation adjustment, applying IAS 29.
Accordingly, the financial statements have been stated in terms of
the measuring unit current at the end of the reporting period,
including the corresponding financial figures for previous periods
informed for comparative purposes. Growth comparisons refer
to the same period of the prior year, measured in the current unit
at the end of the period, unless otherwise stated. Consequently, the information included in the
Financial Statements for the quarter and the six months period
ended on June 30, 2019,
are not comparable to the Financial
Statements previously published by the company.
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Definitions
and terms used herein are provided in the Glossary at the end of
this document. This release does not contain all the
Company’s financial information. As a result, investors
should read this release in conjunction with Central Puerto’s
consolidated financial statements as of and for the quarter and six
months period ended on June 30, 2020 and the notes thereto, which
will be available on the Company’s website.
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Av.
Thomas Edison 2701
C1104BAB
– City of Buenos Aires
Republic
of Argentina
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Tel
(+54 11) 4317 5000 ext. 2192
inversores@centralpuerto.com
www.centralpuerto.com
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Results for the Quarter and First Half
Ended on June 30, 2020
A. 2Q2020 Highlights
2Q2020 energy generation decreased 18% to 2,673 GWh, as compared to 3,256 GWh during the
same period of 2019 (see section B. Main Operating Metrics),
mainly due to the unavailability of unit LDCUCC25 during the
quarter due to a significative failure in its main transformer, and
a lower demand for electric energy due to the Quarantine, which
affected the power generation from thermal units. This was
partially offset by the increase in the energy generation from the
new renewable wind farms La Castellana II, La Genoveva II, Manque
and Los Olivos (for more information
see section B. Main Operating Metrics).
Thermal units availability was 82%, compared to 92% in the
2Q2019, and a market average of 84% for the 2Q2020, mainly due to
the unavailability of unit LDCUCC25 (for more information below in section A.
2Q2020 Highlights).
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“Despite the current challenges, we continue developing our
operations and expansion plans for both our thermal and renewable
energy projects, serving our clients and the
community.”
Jorge Rauber, CEO of Central Puerto
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Effects of the Quarantine
measures due to the Covid-19 crisis. On March 20, 2020 the Argentine
Government issued Decree No. 297/2020 establishing a preventive and
mandatory social isolation policy (“the Quarantine”) as
a public health measure to contain the effects of the COVID-19
outbreak.
Consequently,
electric energy demand decreased 11.0% and 7.6% in April and May
2020, as compared to the same month of 2019. However, although
these measures remain in effect as of the date of this release, new
exceptions for certain economic activities and flexibilizations in
some parts of the country with less virus circulation have been
approved. In June 2020 demand increased 1.2% compared to June 2019,
due to higher economic activity and lower temperatures during the
winter. Therefore, during the 2Q2020, electricity demand decreased
5.5%, as compared to the same period of the prior
year.
Additionally,
in July 2020, demand increased 1.5% compared to the same month of
2019.
Regarding
the expansion projects, the construction of private sector energy
infrastructure was not included initially as an exemption to the
Quarantine but was included on April 7, 2020. Consequently, after
taking all necessary precautions and implementing corresponding
protocols to protect the personnel and the community where the
projects are developed, the construction of La Genoveva I wind farm
and Terminal 6-San Lorenzo new plant was resumed on April 9, 2020,
and on April 27, 2020, respectively.
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Av.
Thomas Edison 2701
C1104BAB
– City of Buenos Aires
Republic
of Argentina
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Tel
(+54 11) 4317 5000 ext. 2192
inversores@centralpuerto.com
www.centralpuerto.com
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Results for the Quarter and First Half
Ended on June 30, 2020
Due to
these restrictions, the CODs of La Genoveva I and Terminal 6-San
Lorenzo are expected to be delayed and depend on the evolution of
the situation in the regions in which both projects are located and
the measures implemented by the government.
According
to the general situation, the Energy Secretariat issued a 185 days
extension in the due date for the project completions (COD) for all
projects under construction.
Conventional Energy
Unavailability of unit LDCUCC25 (306.4 MW). During April
2020, the Siemens branded combined cycle of the Luján de Cuyo
plant became unavailable due to significative failure in its main
transformer. On July 16, 2020, after replacing the damaged
equipment with a backup transformer stored in the Buenos Aires
plant, the unit became online again. The downtime implied a
reduction of the energy generation and power availability, which
had a significative economic impact during the 2Q2020. However, the
Company has a Comprehensive Operational Risk and Loss of Profits
insurance that mitigates such losses.
Suspension of price adjustment for units under Energía Base
regulatory framework. On
February 27, 2020 the Secretariat of Energy issued Res. 31/2020,
which replaced the price scheme for the Energía Base
generation units. The prices were set in pesos with a monthly
adjustment using the following formula: (i) 60% of the CPI, plus
(ii) 40% of the WPI (stated in Annex VI of Resolution 31/2020).
However, on April 8, 2020 the Secretariat of Energy, in the
context of the Covid-19 pandemic crisis, instructed CAMMESA to
postpone until further notice the application of Annex VI. As of
today, the mechanism remains suspended.
Renewable Energy
Purchase of CP Renovables S.A. minority stake. On June 24,
2020, the Board of Directors of Central Puerto, with the aim of
increasing the exposure of the company to the renewable energy
generation segment, authorized the purchase of the minority
shareholder’s stake of CP Renovables S.A. (“CP
Renovables”), holding Central Puerto now 100% stake in the
company. CP Renovables, owns through special purpose vehicle
subsidiaries (SPVs) five wind farms: La Castellana I (100.8 MW), La
Castellana II (15.2 MW), Achiras (48 MW), Manque (57 MW) and Los
Olivos (22.8 MW), with a total installed capacity of 244 MW. All of
them are fully operational,
performing above the expected load factor, and have long term Power Purchase Agreement
(PPAs), under which they sell their electricity
production.
Following
the same trends of the rest of the world, renewable energy is
rapidly gaining ground in the Argentine matrix, displacing the
least efficient generation. In a context of lower electricity
demand, renewable energy projects, are not affected since they have
dispatch priority, and
therefore, they sell 100% of their
production. In 2019, renewable generation in Argentina
represented 5.8% of total production and is expected to increase
significantly in 2020.
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Av.
Thomas Edison 2701
C1104BAB
– City of Buenos Aires
Republic
of Argentina
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Tel
(+54 11) 4317 5000 ext. 2192
inversores@centralpuerto.com
www.centralpuerto.com
|
Results for the Quarter and First Half
Ended on June 30, 2020
Renewable
energy projects have a series of advantages that make this
opportunity attractive:
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Lower scale and
complexity than thermal plants, and can be operated with less
capital and risk, even in times of crisis, such us the current
Covid-19 pandemic.
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Access to
international sources of financing under project finance structures
that maximizes the leverage and efficiency in the use of
capital.
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The contracts
(PPAs) under the RenovAr regulatory framework including, in the
case of CP Renovables, La Castellana I and Achiras, have a payment
guarantee from the FODER fund with the participation as guarantor
of the World Bank.
●
In the case of the
rest of the wind farms that operate under the Term Market for
Renewable Energy (MATER) regulatory framework, which include La
Castellana II, Manque and Los Olivos, they sell energy directly to
Large Users, usually with high credit rating, under long term
PPAs.
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Stable cash flows
based on their priority to dispatch to the grid, and long-term PPA
contracts.
B. Main operating metrics
The table below sets forth key operating metrics for 2Q2020,
compared to 1Q2019 and 2Q2019, and 1H2020, compared to
1H2019:
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Key Metrics
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2Q 2020
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1Q 2020
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2Q 2019
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Var % (2Q/2Q)
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1H
2020
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1H
2019
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Var % (1H/1H)
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Continuing Operations
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Energy Generation (GWh)
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2,673
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3,908
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3,256
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(18%)
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6,581
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6,806
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(3%)
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-Electric Energy Generation- Thermal*
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1,707
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2,686
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2,444
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(30%)
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4,393
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4,991
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(12%)
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-Electric Energy Generation – Hydro
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661
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929
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665
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(1%)
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1,589
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1,511
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5%
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-Electric Energy Generation – Wind
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305
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294
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147
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107%
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599
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304
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97%
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Installed capacity (MW;
EoP1)
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4,316
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4,316
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4,082
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6%
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4,316
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4,082
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6%
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-Installed capacity -Thermal (MW)
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2,589
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2,589
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2,493
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4%
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2,589
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2,493
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4%
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-Installed capacity - Hydro (MW)
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1,441
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1,441
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1,441
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0%
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1,441
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1,441
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0%
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-Installed capacity - Wind (MW)
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286
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286
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148
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93%
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286
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148
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93%
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Availability -
Thermal2
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82%
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93%
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92%
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(10 p.p.)
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87%
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92%
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(6 p.p.)
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Steam production (thousand Tons)
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260
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255
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266
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(2%)
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515
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543
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(5%)
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Source:
CAMMESA; company data. * Includes generation from Brigadier
López starting on April 2019.
1 EoP refers to “End of Period”.
2 Availability weighted average by power capacity. Off-time
due to scheduled maintenance agreed with CAMMESA is not considered
in the ratio.
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Av.
Thomas Edison 2701
C1104BAB
– City of Buenos Aires
Republic
of Argentina
|
Tel
(+54 11) 4317 5000 ext. 2192
inversores@centralpuerto.com
www.centralpuerto.com
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Results for the Quarter and First Half
Ended on June 30, 2020
In the 2Q2020, energy generation decreased 18% to 2,673 GWh,
compared to 3,256 GWh in the 2Q2019, As a reference, domestic energy generation
decreased 2.8% during the 2Q2020, compared to the 2Q2019, according
to data from CAMMESA.
The decrease in the energy generated by Central Puerto was
due to:
a)
a 30% or 737 GWh
decrease in the electricity generation from thermal units, due to
i) the unavailability of the unit LDCUCC25 (306.4 MW) mentioned
before, which implied a reduction of 491 GWh compared to the same
period of the prior year (35 GWh during the 2Q2020 compared to 526
GWh during 2Q2020), and ii) a 246 GWh reduction for the rest of the
thermal units, mainly related to the effects of the Quarantine
measures due to the Covid-19 crisis, and
b)
a 1% decrease in
energy generation form the hydro plant Piedra del Águila due
to lower waterflow in the Limay and Collón Curá
rivers,
This
was partially offset by,
c)
a 107% increase in
energy generation from renewable units, which increased mainly the
due to the operation during the full quarter of La Castellana II (15.2 MW) and La Genoveva II
(41.8 MW) wind farms that commenced their commercial operations
during the 3Q2019, and Manque (57 MW) and Los Olivos (22.8 MW),
which started operations during December 2019 and February 2020,
respectively.
Steam production decrease 2%, totaling 260,000 tons produced during
2Q2020, compared to 266,000 tons during the 2Q2019, mainly because
of a reduction in the activity in oil refinery of the client, which
was affected by the decrease in the demand of fuels due to the
Quarantine, which started on March 20, 2020.
In the
1H2020, energy generation decreased 3% to 6,581 GWh, compared to 6,806 GWh in the 2Q2019,
As a reference, domestic energy generation increased 2.4% during
the 2Q2020, compared to the 2Q2019, according to data from
CAMMESA.
The decrease in the energy generated by Central Puerto was
due to:
a)
a 12% or 598 GWh
decrease in the electricity generation from thermal units, due to
i) the unavailability of the unit LDCUCC25 (306.4 MW) mentioned
before, which implied a reduction of 439 GWh compared to the same
period of the prior year (575 GWh during the 1H2020 compared to
1,014 GWh during 1H2019), and ii) a 478 GWh reduction for the rest
of the thermal units, mainly related to the effects of the
Quarantine measures due to the Covid-19 crisis, and
|
Av.
Thomas Edison 2701
C1104BAB
– City of Buenos Aires
Republic
of Argentina
|
Tel
(+54 11) 4317 5000 ext. 2192
inversores@centralpuerto.com
www.centralpuerto.com
|
Results for the Quarter and First Half
Ended on June 30, 2020
This
was partially offset by,
b)
a 5% increase in
energy generation form the hydro plant Piedra del Águila due
to higher waterflow in the Limay and Collón Curá
rivers,
c)
a 97% increase in
energy generation from renewable units, which increased mainly due
to the operation during the full period of La Castellana II (15.2 MW), La Genoveva II (41.8
MW) wind farms that commenced their commercial operations during
the 3Q2019, and Manque (57 MW) and Los Olivos (22.8 MW), which
started operations during December 2019 and February 2020,
respectively.
Finally, steam production showed a decrease of 5%, totaling 515,000
tons produced during 2Q2020 compared to 543,000 tons during the
2Q2019, mainly because of a reduction in the activity in the oil
refinery of the client, which was affected by the decrease in the
demand of fuels due to the Quarantine, which started on March 20,
2020.
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Av.
Thomas Edison 2701
C1104BAB
– City of Buenos Aires
Republic
of Argentina
|
Tel
(+54 11) 4317 5000 ext. 2192
inversores@centralpuerto.com
www.centralpuerto.com
|
Results for the Quarter and First Half
Ended on June 30, 2020
C. Financials
Main financial magnitudes of continuing operations
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Million Ps.
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2Q 2020
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1Q 2020
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2Q 2019
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Var % (2Q/2Q)
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1H
2020
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1H
2019
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Var % (1H/1H)
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Unaudited, subject to limited review according to rule ISRE
2410
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Unaudited1
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Unaudited, subject to limited review according to rule ISRE
2410
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Unaudited, subject to limited review according to rule ISRE
2410
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Unaudited, subject to limited review according to rule ISRE
2410
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Revenues
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7,183
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8,436
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8,307
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(14%)
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15,619
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18,056
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(13%)
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Cost of
sales
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(3,375)
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(3,497)
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(4,680)
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(28%)
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(6,872)
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(10,400)
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(34%)
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Gross profit
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3,808
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4,939
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3,628
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5%
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8,747
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7,656
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14%
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Administrative and selling expenses
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(554)
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(660)
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(601)
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(8%)
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(1,214)
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(1,311)
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(7%)
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Operating income before other operating results
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3,254
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4,279
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3,027
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7%
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7,532
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6,344
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19%
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Other operating results, net
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3,120
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2,385
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900
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247%
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5,505
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5,406
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2%
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Operating income
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6,374
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6,664
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3,927
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62%
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13,037
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11,750
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11%
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Depreciations
and Amortizations
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1,220
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1,224
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488
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150%
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2,444
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1,240
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97%
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Adjusted EBITDA
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7,594
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7,888
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4,415
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72%
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15,481
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12,990
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19%
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1.
Includes, among others, the following concepts:
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● Foreign Exchange
Difference and interests related to FONI trade
receivables
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3,204
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2,680
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538
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495%
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5,885
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5,111
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15%
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● Impairment on
property, plant and equipment
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(436)
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(816)
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-
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N/A
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(1,252)
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-
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0
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Adjusted EBITDA excluding FX difference and interests
related to FONI trade receivables and Impairment on property, plant
and equipment
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4,826
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6,022
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3,877
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24%
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10,848
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7,879
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38%
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Average exchange rate of period
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67.74
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61.42
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44.01
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54%
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67.74
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44.01
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54%
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Exchange rate end of period
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70.46
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64.47
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42.46
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66%
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70.46
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42.46
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66%
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NOTE:
Exchange rates quoted by the Banco de la Nación Argentina are
provided only as a reference. The average exchange rate refers to
the average of the daily exchange rates quoted by the Banco de la
Nación Argentina for wire transfers (divisas) for each
period.
See
“Disclaimer-Adjusted EBITDA” below for further
information.
|
Av.
Thomas Edison 2701
C1104BAB
– City of Buenos Aires
Republic
of Argentina
|
Tel
(+54 11) 4317 5000 ext. 2192
inversores@centralpuerto.com
www.centralpuerto.com
|
Results for the Quarter and First Half
Ended on June 30, 2020
Adjusted EBITDA Reconciliation
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Million Ps.
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2Q 2020
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1Q 2020
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2Q 2019
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Var % (2Q/2Q)
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1H
2020
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1H
2019
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Var % (1H/1H)
|
|
|
Unaudited, subject to limited review according to rule ISRE
2410
|
Unaudited2
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Unaudited, subject to limited review according to rule ISRE
2410
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Unaudited, subject to limited review according to rule ISRE
2410
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Unaudited, subject to limited review according to rule ISRE
2410
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Consolidated
Net income for the period
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2,189
|
1,008
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1,930
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13%
|
3,197
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3,853
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(17%)
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Loss on
net monetary position
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(155)
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(331)
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1,685
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(109%)
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(485)
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3,770
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(113%)
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Financial
expenses
|
5,025
|
4,589
|
734
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584%
|
9,495
|
3,024
|
214%
|
|
Financial
income
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(1,387)
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(137)
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(794)
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75%
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(1,532)
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(1,392)
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10%
|
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Share
of the profit of an associate
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89
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(57)
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(341)
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(126%)
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32
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(493)
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(106%)
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Income
tax expenses
|
612
|
1,717
|
713
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(14%)
|
2,330
|
2,988
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(22%)
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Depreciation
and amortization
|
1,220
|
1,224
|
488
|
150%
|
2,444
|
1,240
|
97%
|
|
Adjusted EBITDA
|
7,594
|
8,013
|
4,415
|
72%
|
15,481
|
12,990
|
19%
|
|
1.
Includes, among others, the following concepts:
|
|
|
|
|
|
|
|
|
● Foreign Exchange
Difference and interests related to FONI trade
receivables
|
3,204
|
2,680
|
538
|
495%
|
5,885
|
5,111
|
15%
|
|
● Impairment on
property, plant and equipment
|
(436)
|
(816)
|
-
|
N/A
|
(1,252)
|
-
|
0
|
|
Adjusted EBITDA excluding Foreign Exchange Difference and
interests related to FONI trade receivables and Impairment on
property, plant and equipment
|
4,826
|
6,149
|
3,877
|
(20%)
|
10,848
|
7,879
|
38%
|
2 1Q2020 figures are stated in the measuring unit
current as of June 30, 2020, calculated as the results for the
1H2020 minus the 2Q2020.
|
Av.
Thomas Edison 2701
C1104BAB
– City of Buenos Aires
Republic
of Argentina
|
Tel
(+54 11) 4317 5000 ext. 2192
inversores@centralpuerto.com
www.centralpuerto.com
|
Results for the Quarter and First Half
Ended on June 30, 2020
2Q 2020 Results Analysis
Revenues decreased 14% to Ps. 7,183 million in the 2Q2020,
as compared to Ps. 8,307 million in the 2Q2019. The decrease in
revenues was mainly affected by the abrogation of Resolution No.
70/2018, on December 30, 20193. Consequently, fuel remuneration for
units under Energía Base regulatory framework (and other
related concepts), amounted to Ps. 223 million during the 2Q2020,
compared to Ps. 2,547 million during the 2Q2019, when Res. 70/18
was in force (see “—Factors Affecting Our Results of
Operations—Our Revenues—The Energía Base” in
the Company’s 20-F filing).
Without
considering fuel remuneration, Revenues for the 2Q2020 would have
been Ps. 6,961
million, compared to Ps. 5,760 million. This increase was
mainly due to:
(i)
an increase in Sales under contracts, which
amounted to Ps. 3,769 million during the 2Q2020, as compared to Ps.
779 million in the 2Q2019, mainly due to the revenues
related to the Brigadier López Plant, which was acquired in
June 2019, the new Luján de Cuyo cogeneration unit, which
started operations on October 2019, and the wind farms La
Castellana II, La Genoveva II, Manque and Los Olivos which started
operations during June 2019, September 2019, December 2019, and
February 2020, respectively;
This
increase was partially offset by:
(i)
a decrease in Spot
Sales/Energía Base (Revenues from Resolution 1, Resolution 31,
Resolution 19, SGE Resolution 70/2018 and amendments) which,
without considering the remuneration associated to the
self-procured fuel under Res. 70/18 mentioned above, was Ps. 2,747
million in the 2Q2020 as compared to 4,673 million in the 2Q2019,
mainly due to the:
a.
a decrease in
prices for units under the Energía Base Regulatory framework
established by Res. 31/2020, in force since February 1,
2020,
b.
the unavailability
of the combined cycle LDCUCC25 between April 12 and July 16, 2020
mentioned above, which reduced revenues from power availability and
the energy generation from this unit in 491 GWh (part of which may
be mitigated by the Comprehensive Operational Risk and Loss of
Profits insurance, see section A. 2Q2020 Highlights),
and
c.
a
291 GWh reduction in energy generation from the rest of the units
under this segment, mainly due to the effect of the Quarantine
measures on the thermal units.
3 On December 30, 2019, through
Resolution No. 12/2019, the Ministry of Productive Development
abrogated Resolution SE No. 70/2018 (Res. 70/18), which allowed
generators to purchase their own fuel, and reinstated effectiveness
of section 8 of Resolution No. 95/2013 and section 4 of Resolution
No. 529/2014, centralizing fuel purchases through CAMMESA, who
provides the fuel without a charge to
generators.
|
Av.
Thomas Edison 2701
C1104BAB
– City of Buenos Aires
Republic
of Argentina
|
Tel
(+54 11) 4317 5000 ext. 2192
inversores@centralpuerto.com
www.centralpuerto.com
|
Results for the Quarter and First Half
Ended on June 30, 2020
Gross profit was Ps. 3,808 million in the 2Q2020, compared
to Ps. 3,628 million in 2Q2019. This increase was due to (i) the
above-mentioned variation in revenues, and (ii) a 28% reduction in
the costs of sales that totaled Ps. 3,375 million, compared to Ps.
4,680 million in the 2Q2019. This decrease in the cost of sales was
primarily driven by:
(i)
A 79% decrease in
the purchase of fuel (and related concepts) used in the units that
sell steam, and electricity under contracts or Energía Base
(when applicable), which totaled Ps. 553 million during the 2Q2020,
as compared to Ps. 2,601 million in the 2Q2019, mainly due to the
cost of the self-supplied fuel purchased in accordance to Res.
70/18, which was in force during the 2Q2019, but was abrogated on
December 30, 2019, as described above;
This
was partially offset by:
(ii)
a 36% increase in
non-fuel-related costs of production, which totaled Ps. 2,823
million in the 2Q2020, as compared to Ps. 2,079 million in the
2Q2019, mainly due to the increase in the installed capacity
following the acquisition of Brigadier López plant and the COD
of the new thermal and renewable energy plants.
Gross
Profit Margin totaled 53% during the 2Q2020, as compared to 44% in
the 2Q2019. This change was mainly a consequence of (i) the
operation of purchase of self-supplied fuel, which was in force
during the 2Q2019 but not during the 2Q2020, that has a lower gross
profit margin as compared to the gross profit margin of the rest of
the operations of the company.
Operating income before other operating results, net, was Ps. 3,254
million, compared to Ps. 3,027 million in the 2Q2019. This
increase was due to (i) the above-mentioned increase in gross
profits, and (ii) a 8% decrease (in real terms) in administrative
and selling expenses that totaled Ps. 554 million in the 2Q2020, as
compared to Ps. 601 million in the 2Q2019, mainly driven by a Ps.
144 million reduction in tax on bank account transactions which
during the 2Q2019 had been significantly higher due to the purchase
of the Brigadier López plant and the loans received for that
transaction.
Adjusted EBITDA was Ps. 7,594 million in the 2Q2020,
compared to Ps. 4,415 million in the 2Q2019. This increase was
mainly due to (i) the increase in operating results before other
operating income, net mentioned above, which includes an increase
in depreciations and amortizations that totaled Ps. 1,220 during
the 2Q2020, as compared to Ps. 488 million during the 2Q2019,
mainly related to the new renewable and thermal plants.
Additionally, foreign exchange difference on operating assets,
mainly related to FONI trade receivables generated a Ps. 3,093
million gain during the 2Q2020, compared to a loss of Ps. 1,001
million during the 2Q2019. The increase in the Adjusted EBITDA was
partially offset by a Ps. 436 million non-cash loss related to the
property, plant and equipment impairment accrued during the 2Q2020
on two Siemens branded generating groups stored in the
supplier’s facilities and one General Electric branded
generating group stored in Central Puerto’s Nuevo Puerto
plant, which were valued using the fair value less cost of sale
approach; and (iv) lower interests on trade receivables, mainly
from CAMMESA, which during the 2Q2020 amounted Ps. 642 million, as
compared to Ps. 2,069 million in the 2Q2019 due to a lower trade
receivables balance maintained and lower interest rates during the
period.
|
Av.
Thomas Edison 2701
C1104BAB
– City of Buenos Aires
Republic
of Argentina
|
Tel
(+54 11) 4317 5000 ext. 2192
inversores@centralpuerto.com
www.centralpuerto.com
|
Results for the Quarter and First Half
Ended on June 30, 2020
Consolidated Net income was Ps. 2,189 million and Net income for
shareholder was Ps. 2,194 million or Ps. 1.46 per share or Ps. 14.6
per ADR, in the 2Q2020, compared to Ps. 1,930 million and
1,654 million, respectively, or Ps. 1.10 per share or Ps. 11.0 per
ADR, in the 2Q2019. In addition to the above-mentioned factors, net
income was (i) negatively impacted by higher financial expenses
that amounted to Ps. 5,025 million in the 2Q2020, compared to Ps.
734 million in the 2Q2019, mainly due to the interest accrued on a
higher debt balance during the period, related to the loans
obtained for the thermal and renewable energy expansion projects
and the acquisition of the Brigadier López plant, and the
foreign exchange difference on such loans, which are mostly
denominated in US dollars, and (ii) a Ps. 89 million loss during
the 2Q2020 from the share of profit of associates, compared to a
gain of Ps. 341 million during the 2Q2019, mainly due to lower
results from the operations of Ecogas. This was partially offset by
(ii) higher financial income which amounted to Ps. 1,387 million
during the 2Q2020, compared to Ps. 794 million in the 2Q2019,
mainly due to higher mark-to market results on financial assets
(which excludes FONI and other trade receivables) , measured in
argentine pesos. As a reference, during the 2Q2020, the peso
depreciated 9.3%, compared to an appreciation of 2%, during the
2Q2019.
Finally,
the gain on net monetary position totaled Ps. 155 million during
the 2Q2020, as compared to a loss on the net monetary position of
Ps. 1,685 million in the 2Q2019.
FONI collections totaled Ps. 1,322 million in the 2Q2020,
-including VAT, associated to the FONI trade receivables for Vuelta
de Obligado Plant.
1H2020 Results Analysis
Revenues decreased 13% to Ps. 15,619 million in the 1H2020,
as compared to Ps. 18,056 million in the 1H2019. The decrease in
revenues was mainly affected by the abrogation of Resolution No.
70/2018 mentioned above, on December 30, 2019. Consequently, fuel
remuneration for units under Energía Base regulatory framework
(and other related concepts), amounted to Ps. 535 million during
the 1H2020, compared to Ps. 6,501 million during the 1H2019, when
Res. 70/18 was in force (see “—Factors Affecting Our
Results of Operations—Our Revenues—The Energía
Base” in the Company’s 20-F filing).
Without
considering fuel remuneration, Revenues for the 1H2020 would have
been Ps. 15,084
million, compared to Ps. 11,555 million. This increase was
mainly due to:
(ii)
an increase in Sales under contracts, which
amounted to Ps. 7,339 million during the 1H2020, as compared to Ps.
1,588 million in the 1H2019, mainly due to the revenues
related to the Brigadier López Plant, which was acquired in
June 2019, the new Luján de Cuyo cogeneration unit, which
started operations on October 2019, and the wind farms La
Castellana II, La Genoveva II, Manque and Los Olivos which started
operations during June 2019, September 2019, December 2019, and
February 2020, respectively;
|
Av.
Thomas Edison 2701
C1104BAB
– City of Buenos Aires
Republic
of Argentina
|
Tel
(+54 11) 4317 5000 ext. 2192
inversores@centralpuerto.com
www.centralpuerto.com
|
Results for the Quarter and First Half
Ended on June 30, 2020
This
increase was partially offset by:
(ii)
a decrease in Spot
Sales/Energía Base (Revenues from Resolution 1, Resolution 31,
Resolution 19, SGE Resolution 70/2018 and amendments) which,
without considering the remuneration associated to the
self-procured fuel under Res. 70/18 mentioned above, was Ps. 6,903
million in the 1H2020 as compared to 9,372 million in the 1H2019,
mainly due to the:
a.
a decrease in
prices for units under the Energía Base Regulatory framework
established by Res. 31/2020, in force since February 1,
2020,
b.
the unavailability
of the combined cycle LDCUCC25 between April 12 and July 16, 2020
mentioned above, which reduced revenues from power availability and
the energy generation from this unit, which during the 1H2020 was
439 GWh lower than the 1H2019 (part of which may be mitigated by
the Comprehensive Operational Risk and Loss of Profits insurance,
see section A. 2Q2020 Highlights), and
c.
a
478 GWh reduction in energy generation from the rest of the units
under this segment, mainly due to the effect of the Quarantine
measures on the thermal units and, to a lesser extent, a lower
dispatch in some of the thermal units.
Gross profit increased 14% to Ps. 8,747 million in the
1H2020, compared to Ps. 7,656 million in 1H2019. This
increase was due to (i) the above-mentioned variation in revenues,
and (ii) a 34% reduction in the costs of sales that totaled Ps.
6,872 million, compared to Ps. 10,400 million in the 1H2019. This
decrease in the cost of sales was primarily driven by:
(i)
A 80% decrease in
the purchase of fuel (and related concepts) used in the units that
sell steam, and electricity under contracts or Energía Base
(when applicable), which totaled Ps. 1,238 million during the
1H2020, as compared to Ps. 6,129 million in the 1H2019, mainly due
to the cost of the self-supplied fuel purchased in accordance to
Res. 70/18, which was in force during the 1H2019, but was abrogated
on December 30, 2019, as described above;
This
was partially offset by:
(ii)
a 32% increase in
non-fuel-related costs of production, which totaled Ps. 5,634
million in the 1H2020, as compared to Ps. 4,272 million in the
1H2019, mainly due to the increase in the installed capacity
following the acquisition of Brigadier López plant and the COD
of the new thermal and renewable energy plants.
|
Av.
Thomas Edison 2701
C1104BAB
– City of Buenos Aires
Republic
of Argentina
|
Tel
(+54 11) 4317 5000 ext. 2192
inversores@centralpuerto.com
www.centralpuerto.com
|
Results for the Quarter and First Half
Ended on June 30, 2020
Gross
Profit Margin totaled 56% during the 1H2020, as compared to 42% in
the 1H2019. This change was mainly a consequence of (i) the
operation of purchase of self-supplied fuel, which was in force
during the 1H2019 but not during the 1H2020, that has a lower gross
profit margin as compared to the gross profit margin of the rest of
the operations of the company.
Operating income before other operating results, net, was Ps. 7,532
million, compared to Ps. 6,344 million in the 1H2019. This
increase was due to (i) the above-mentioned increase in gross
profits, and (ii) a 7% decrease (in real terms) in administrative
and selling expenses that totaled Ps. 1,214 million in the 1H2020,
as compared to Ps. 1,311 million in the 1H2019, mainly driven by a
Ps. 157 million reduction in tax on bank account transactions which
during the 1H2019 had been significantly higher due to the purchase
of the Brigadier López plant and the loans received for that
transaction.
Adjusted EBITDA was Ps. 15,481 million in the 1H2020,
compared to Ps. 12,990 million in the 1H2019. This increase was
mainly due to (i) the increase in operating results before other
operating income, net mentioned above, which includes an increase
in depreciations and amortizations that totaled Ps. 2,444 during
the 1H2020, as compared to Ps. 1,240 million during the 1H2019,
mainly related to the new renewable and thermal plants.
Additionally, foreign exchange difference on operating assets,
mainly related to FONI trade receivables generated a Ps. 5,650
million gain during the 1H2020, compared to Ps. 3,075 million
during the 1H2019. The increase in the Adjusted EBITDA was
partially offset by a Ps. 1,252 million non-cash loss related to
the property, plant and equipment impairment accrued during the
1H2020 on two Siemens branded generating groups stored in the
supplier’s facilities and one General Electric branded
generating group stored in Central Puerto’s Nuevo Puerto
plant, which were valued using the fair value less cost of sale
approach; and (iv) lower interests on trade receivables, mainly
from CAMMESA, which during the 1H2020 amounted Ps. 1,450 million,
as compared to Ps. 2,553 million in the 1H2019 due to a lower trade
receivables balance maintained and lower interest rates during the
period.
Consolidated Net income was Ps. 3,197 million and Net income for
shareholder was Ps. 3,177 million or Ps. 2.11 per share or Ps. 21.1
per ADR, in the 1H2020, compared to Ps. 3,853 million and
3,624 million, respectively, or a gain of Ps. 2.41 per share or Ps.
24.1 per ADR, in the 1H2019. In addition to the above-mentioned
factors, net income was (i) negatively impacted by higher financial
expenses that amounted to Ps. 9,495 million in the 1H2020, compared
to Ps. 3,024 million in the 1H2019, mainly due to the interest
accrued on a higher debt balance during the period, related to the
loans obtained for the thermal and renewable energy expansion
projects and the acquisition of the Brigadier López plant, and
the foreign exchange difference on such loans, which are mostly
denominated in US dollars, and (ii) a Ps. 32 million loss during
the 1H2020 from the share of profit of associates, compared to a
gain of Ps. 493 million during the 1H2019, mainly due to lower
results from the operations of Ecogas. This was partially offset by
(ii) higher financial income which amounted to Ps. 1,532 million
during the 1H2020, compared to Ps. 1,392 million in the 1H2019,
mainly due to higher mark-to-market results on financial assets
(which excludes FONI and other trade receivables) , measured in
argentine pesos. As a reference, during the 1H2020, the peso
depreciated 17%, compared to 13%, during the 1H2019.
|
Av.
Thomas Edison 2701
C1104BAB
– City of Buenos Aires
Republic
of Argentina
|
Tel
(+54 11) 4317 5000 ext. 2192
inversores@centralpuerto.com
www.centralpuerto.com
|
Results for the Quarter and First Half
Ended on June 30, 2020
Finally,
the gain on net monetary position totaled Ps. 485 million during
the 1H2020, as compared to a loss on the net monetary position of
Ps. 3,770 million in the 1H2019.
FONI collections totaled Ps. 2,987 million in the 1H2020,
-including VAT, associated to the FONI trade receivables for San
Martín, Manuel Belgrano, and Vuelta de Obligado
Plants.
Financial Situation
As of June 30, 2020, the Company and its subsidiaries had Cash and Cash
Equivalents of Ps. 2,132 million, and Other Current Financial Assets of Ps.
4,437 billion.
The
following chart breaks down the Net Debt position of Central Puerto
(on a stand-alone basis) and its subsidiaries:
|
Million Ps.
|
|
As of
June 30, 2020
|
|
Cash and cash equivalents (stand-alone)
|
|
10
|
|
Other financial assets (stand-alone)4
|
|
2,351
|
|
Financial Debt (stand-alone)
|
|
(23,131)
|
|
Composed of:
Financial Debt (current) (Central
Puerto S.A. stand-alone)
|
(11,307)
|
|
|
Financial Debt (non-current) (Central
Puerto S.A. stand-alone)
|
(11,824)
|
|
|
Subtotal Central Puerto stand-alone Net Debt Position
|
|
(20,771)
|
|
Cash and cash equivalents of subsidiaries
|
|
2,123
|
|
Other financial assets of subsidiaries
|
|
2,086
|
|
Financial Debt of subsidiaries
Composed of:
|
|
(19,160)
|
|
Financial Debt of subsidiaries
(current)4
|
(1,701)
|
|
|
Financial Debt of subsidiaries
(non-current) 4
|
17,459)
|
|
|
Subtotal Subsidiaries Net Debt Position
|
|
(14,951)
|
|
Consolidated Net Debt Position
|
|
(35,722)
|
4 Excludes intercompany loans.
|
Av.
Thomas Edison 2701
C1104BAB
– City of Buenos Aires
Republic
of Argentina
|
Tel
(+54 11) 4317 5000 ext. 2192
inversores@centralpuerto.com
www.centralpuerto.com
|
Results for the Quarter and First Half
Ended on June 30, 2020
Cash Flows of the 1H2020
|
Million Ps.
|
1H 2020
ended on June 30, 2020
|
|
Cash and Cash equivalents at the beginning
|
1,697
|
|
Net cash flows provided by operating activities
|
8,206
|
|
Net cash flows used in investing activities
|
(3,045)
|
|
Net cash flows used in financing activities
|
(4,213)
|
|
Exchange difference and other financial results
|
(364)
|
|
Loss on net monetary position by cash and cash
equivalents
|
(148)
|
|
Cash and Cash equivalents at the end
|
2,132
|
Net cash provided by operating activities was Ps.
8,206 million during the 1H2020. This cash flow arises
from (i) Ps. 13,037 million from the operating income obtained
during the 1H2020, (ii) Ps. 8,514 million due to a decrease in the
stock of trade receivables, mainly related to the FONI collections,
(iii) Ps. 1,282 million in collection of interests from clients,
including the ones from FONI, during the period and (iv)
a Ps. 1,252 million non-cash
impairment of property, plant and equipment charge included in the
operating income, which was partially offset by (v) a
Ps. 5,650 million non-cash foreign
exchange difference on trade receivables, (vi) Ps. 2,225 million
from income tax paid, and (vii) a 5,650 million reduction in trade
and other payables, other non-financial liabilities and liabilities
from employee benefits mainly due to (a) the payment of the
self-procured fuel purchased prior to the abrogation of the Res.
70/18, as mentioned above, and (b) the cancellation of
non-financial liabilities associated to the construction of the
expansion projects.
Net cash used in investing activities was Ps. 3,045 million in 1H
2020. This amount was mainly due to (i) Ps. 5,929 million in
payments for the purchase of property, plant and equipment for the
construction of the renewable and thermal projects, which was
partially offset by (ii) Ps. 2,767 million obtained from the sell
of short-term financial assets, net and (iii) Ps. 118 million in
dividends collected from TJSM and TMB, the companies that operate
the San Martín and Manuel Belgrano combined cycle plants from
the FONI program.
Net cash used in financing activities was Ps. 4,213 million in the
1H 2020. This amount was mainly the result of Ps. 2,001
million Bank and investment accounts overdrafts paid, net, (ii) Ps.
719 million in loans paid, mainly related to the loans received for
the expansion projects, and (iii) Ps. 1,441 million in interest and
financial expenses paid, mainly related to those
loans.
|
Av.
Thomas Edison 2701
C1104BAB
– City of Buenos Aires
Republic
of Argentina
|
Tel
(+54 11) 4317 5000 ext. 2192
inversores@centralpuerto.com
www.centralpuerto.com
|
Results for the Quarter and First Half
Ended on June 30, 2020
D. Tables
a.
Consolidated Statement of Income
|
|
2Q 2020
|
2Q 2019
|
|
|
Unaudited, subject to limited review according to rule ISRE
2410
|
Unaudited, subject to limited review according to rule ISRE
2410
|
|
|
Thousand Ps.
|
Thousand Ps.
|
|
|
|
|
|
Revenues
|
7,183,422
|
8,307,463
|
|
Cost
of sales
|
(3,375,264)
|
(4,679,682)
|
|
Gross
income
|
3,808,158
|
3,627,781
|
|
|
|
|
|
Administrative and
selling expenses
|
(554,457)
|
(600,616)
|
|
Other operating
income
|
3,731,721
|
1,068,666
|
|
Other operating
expenses
|
(175,701)
|
(168,491)
|
|
Property plant and
equipment impairment
|
(435,663)
|
-
|
|
Operating
income
|
6,374,058
|
3,927,340
|
|
|
|
|
|
Gain (loss) on net
monetary position
|
154,666
|
(1,685,120)
|
|
Finance
income
|
1,386,934
|
793,929
|
|
Finance
expenses
|
(5,024,751)
|
(734,201)
|
|
Share of the profit
of associates
|
(89,025)
|
341,403
|
|
Income
before income tax
|
2,801,882
|
2,643,351
|
|
Income
tax for the period
|
(612,475)
|
(713,193)
|
|
Net income for the period
|
2,189,407
|
1,930,158
|
|
Net total comprehensive income for the period
|
2,189,407
|
1,930,158
|
|
|
|
|
|
Attributable
to:
|
|
|
|
-Equity holders of
the parent
|
2,194,480
|
1,653,872
|
|
-Non-controlling
interests
|
(5,073)
|
276,286
|
|
|
2,189,407
|
1,930,158
|
|
|
|
|
|
Earnings
per share:
|
|
|
|
Basic and diluted
(Ps.)
|
1.46
|
1.10
|
|
Av.
Thomas Edison 2701
C1104BAB
– City of Buenos Aires
Republic
of Argentina
|
Tel
(+54 11) 4317 5000 ext. 2192
inversores@centralpuerto.com
www.centralpuerto.com
|
Results for the Quarter and First Half
Ended on June 30, 2020
|
|
1H 2020
|
1H 2019
|
|
|
Unaudited, subject to limited review according to rule ISRE
2410
|
Unaudited, subject to limited review according to rule ISRE
2410
|
|
|
Thousand Ps.
|
Thousand Ps.
|
|
|
|
|
|
Revenues
|
15,618,868
|
18,055,908
|
|
Cost
of sales
|
(6,872,064)
|
(10,400,232)
|
|
Gross
income
|
8,746,804
|
7,655,676
|
|
|
|
|
|
Administrative and
selling expenses
|
(1,214,422)
|
(1,311,219)
|
|
Other operating
income
|
7,105,762
|
5,628,328
|
|
Other operating
expenses
|
(349,515)
|
(222,582)
|
|
Property plant and
equipment impairment
|
(1,251,730)
|
-
|
|
Operating
income
|
13,036,899
|
11,750,203
|
|
|
|
|
|
Gain (loss) on net
monetary position
|
485,227
|
(3,770,239)
|
|
Finance
income
|
1,531,899
|
1,391,699
|
|
Finance
expenses
|
(9,495,089)
|
(3,023,663)
|
|
Share of the profit
of associates
|
(31,979)
|
492,525
|
|
Income
before income tax
|
5,526,957
|
6,840,525
|
|
Income
tax for the period
|
(2,329,885)
|
(2,987,539)
|
|
Net income for the period
|
3,197,072
|
3,852,986
|
|
Net total comprehensive income for the period
|
3,197,072
|
3,852,986
|
|
|
|
|
|
Attributable
to:
|
|
|
|
-Equity holders of
the parent
|
3,177,244
|
3,623,720
|
|
-Non-controlling
interests
|
19,828
|
229,266
|
|
|
3,197,072
|
3,852,986
|
|
|
|
|
|
Earnings
per share:
|
|
|
|
Basic and diluted
(Ps.)
|
2.11
|
2.41
|
|
Av.
Thomas Edison 2701
C1104BAB
– City of Buenos Aires
Republic
of Argentina
|
Tel
(+54 11) 4317 5000 ext. 2192
inversores@centralpuerto.com
www.centralpuerto.com
|
Results for the Quarter and First Half
Ended on June 30, 2020
b.
Consolidated Statement of Financial Position
|
|
As of June 30,
2020
|
As of December 31,
2019
|
|
|
Unaudited, subject to limited review according to rule ISRE
2410
|
Unaudited, subject to limited review according to rule ISRE
2410
|
|
|
Thousand Ps.
|
Thousand Ps.
|
|
Assets
|
|
|
|
Non-current
assets
|
|
|
|
Property, plant and
equipment
|
67,066,257
|
64,403,725
|
|
Intangible
assets
|
7,099,914
|
8,029,670
|
|
Investment in
associates
|
3,769,902
|
3,919,621
|
|
Trade and other
receivables
|
26,396,121
|
27,545,418
|
|
Other non-financial
assets
|
533,241
|
782,868
|
|
Inventories
|
155,762
|
163,766
|
|
|
105,021,197
|
104,845,068
|
|
Current
assets
|
|
|
|
Inventories
|
884,140
|
746,983
|
|
Other non-financial
assets
|
1,021,426
|
1,143,030
|
|
Trade and other
receivables
|
14,460,513
|
17,767,078
|
|
Other financial
assets
|
4,436,505
|
8,745,249
|
|
Cash and cash
equivalents
|
2,132,306
|
1,696,935
|
|
|
22,934,890
|
30,099,275
|
|
Total
assets
|
127,956,087
|
134,944,343
|
|
|
|
|
|
Equity
and liabilities
|
|
|
|
Equity
|
|
|
|
Capital
stock
|
1,514,022
|
1,514,022
|
|
Adjustment to
capital stock
|
21,126,025
|
21,126,025
|
|
Legal
reserve
|
3,202,398
|
2,702,087
|
|
Voluntary
reserve
|
40,450,730
|
30,114,738
|
|
Other equity
accounts
|
(1,640,520)
|
-
|
|
Retained
earnings
|
3,177,244
|
10,836,303
|
|
Equity
attributable to shareholders of the parent
|
67,829,899
|
66,293,175
|
|
Non-controlling
interests
|
71,627
|
898,203
|
|
Total Equity
|
67,901,526
|
67,191,378
|
|
|
|
|
|
Non-current
liabilities
|
|
|
|
Other
non-financial liabilities
|
4,741,259
|
4,946,614
|
|
Other loans and
borrowings
|
29,283,170
|
34,858,710
|
|
Compensation
and employee benefits liabilities
|
280,929
|
260,446
|
|
Provisions
|
32,297
|
10,621
|
|
Deferred
income tax liabilities
|
7,417,832
|
7,167,934
|
|
|
41,755,487
|
47,244,325
|
|
|
|
|
|
Current
liabilities
|
|
|
|
Trade and other
payables
|
2,019,064
|
6,701,367
|
|
Other non-financial
liabilities
|
1,125,985
|
1,970,105
|
|
Other loans and
borrowings
|
13,007,827
|
9,116,881
|
|
Compensation and
employee benefits liabilities
|
595,612
|
793,687
|
|
Income tax
payable
|
1,523,250
|
1,895,412
|
|
Provisions
|
27,336
|
31,188
|
|
|
18,299,074
|
20,508,640
|
|
Total
liabilities
|
60,054,561
|
67,752,965
|
|
Total
equity and liabilities
|
127,956,087
|
134,944,343
|
|
Av.
Thomas Edison 2701
C1104BAB
– City of Buenos Aires
Republic
of Argentina
|
Tel
(+54 11) 4317 5000 ext. 2192
inversores@centralpuerto.com
www.centralpuerto.com
|
Results for the Quarter and First Half
Ended on June 30, 2020
c.
Consolidated Statement of Cash Flow
|
|
1H 2020
|
1H 2019
|
|
|
Unaudited, subject to limited review according to rule ISRE
2410
|
Unaudited, subject to limited review according to rule ISRE
2410
|
|
|
Thousand Ps.
|
Thousand Ps.
|
|
Operating
activities
|
|
|
|
Income for the
period before income tax
|
5,526,957
|
6,840,525
|
|
|
|
|
|
Adjustments
to reconcile income for the period before income tax to net cash
flows:
|
|
|
|
Depreciation of
property, plant and equipment
|
1,470,027
|
923,325
|
|
Amortization of
intangible assets
|
973,744
|
316,359
|
|
Property, plant and
equipment impairment
|
1,251,730
|
-
|
|
Discount of trade
and other receivables and payables, net
|
39,019
|
39
|
|
Interest earned
from customers
|
(1,450,213)
|
(2,552,831)
|
|
Commercial and
fiscal interests lost
|
295,274
|
120,944
|
|
Financial
income
|
(1,531,899)
|
(1,391,699)
|
|
Financial
expenses
|
9,495,089
|
3.023.663
|
|
Share of the profit
of associates
|
31,979
|
(492,525)
|
|
Stock-based
payments
|
1,396
|
17,138
|
|
Movements
in provisions and long-term employee benefit plan
expenses
|
56,651
|
110,414
|
|
Foreign exchange
difference for trade receivables
|
(5,649,993)
|
(3,074,724)
|
|
Loss on net
monetary position
|
(4,428,558)
|
(3,841,108)
|
|
|
|
|
|
Working
capital adjustments:
|
|
|
|
Decrease in trade
and other receivables
|
8,513,917
|
9.355.767
|
|
Decrease in other
non-financial assets and inventories
|
203,059
|
90,645
|
|
(Decrease) Increase
in trade and other payables, other non-financial liabilities and
liabilities from employee benefits
|
(5,649,782)
|
610,649
|
|
|
9,148,397
|
10,056,581
|
|
Interest received
from customers
|
1,282,441
|
2,425,474
|
|
Income tax
paid
|
(2,225,333)
|
(8,753,407)
|
|
Net
cash flows provided by operating activities
|
8,205,505
|
3,728,648
|
|
|
|
|
|
Investing
activities
|
|
|
|
Purchase of
property, plant and equipment
|
(5,929,490)
|
(7,986,902)
|
|
Acquisition of
Brigadier López plant
|
-
|
(9,617,330)
|
|
Dividends
received
|
117,634
|
133,163
|
|
Sale of
available-for-sale assets, net
|
2,766,959
|
708,415
|
|
Net
cash flows used in investing activities
|
(3,044,897)
|
(16,762,654)
|
|
|
|
|
|
Financing
activities
|
|
|
|
Banks and
investment accounts overdrafts received (paid), net
|
(2,000,857)
|
821,758
|
|
Long term loans
received
|
-
|
14,811,924
|
|
Long term loans
paid
|
(718,619)
|
(527,172)
|
|
Interests and other
loan costs paid
|
(1,440,690)
|
(1,647,749)
|
|
Contributions from
non-controlling interests
|
-
|
220,272
|
|
Dividends
paid
|
(52,555)
|
(26,388)
|
|
Net
cash flows used in financing activities
|
(4,212,721)
|
13,652,645
|
|
|
|
|
|
|
|
|
|
Increase
in cash and cash equivalents
|
947,887
|
618,639
|
|
Exchange difference
and other financial results
|
(364,199)
|
9,201
|
|
Monetary results
effect on cash and cash equivalents
|
(148,317)
|
129,030
|
|
Cash and cash
equivalents as of January 1
|
1,696,935
|
401,819
|
|
Cash
and cash equivalents as of June 30, 2020
|
2,132,306
|
1,158,689
|
|
Av.
Thomas Edison 2701
C1104BAB
– City of Buenos Aires
Republic
of Argentina
|
Tel
(+54 11) 4317 5000 ext. 2192
inversores@centralpuerto.com
www.centralpuerto.com
|
Results for the Quarter and First Half
Ended on June 30, 2020
E. Information about the Conference Call
There
will be a conference call to discuss Central Puerto’s
Second Quarter 2020 results
on August 27, 2020 at
10:00 New York Time / 11:00 Buenos
Aires Time.
The
conference will hosted by Mr. Jorge Rauber, Chief Executive
Officer, and Fernando Bonnet, Chief Operating Officer. To access
the conference call, please dial:
United
States Participants (Toll Free): 1-888-317-6003
Argentina
Participants (Toll Free) : 0800-555-0645
International
Participants : +1-412-317-6061
Passcode : 5307307
The
Company will also host a live audio webcast of the conference call
on the Investor Relations section of the Company's website at
www.centralpuerto.com.
Please allow extra time prior to the call to visit the website and
download any streaming media software that might be required to
listen to the webcast. The call will be available for replay on the
Company website under the Investor Relations section.
You
may find additional information on the Company at:
●
http://investors.centralpuerto.com/
●
www.sec.gov
●
www.cnv.gob.ar
|
Av.
Thomas Edison 2701
C1104BAB
– City of Buenos Aires
Republic
of Argentina
|
Tel
(+54 11) 4317 5000 ext. 2192
inversores@centralpuerto.com
www.centralpuerto.com
|
Results for the Quarter and First Half
Ended on June 30, 2020
Glossary
In this
release, except where otherwise indicated or where the context
otherwise requires:
●
“CAMMESA”
refers to Compañía
Administradora del Mercado Mayorista Eléctrico Sociedad
Anónima;
●
“COD”
refers to Commercial Operation Date, the day in which a generation
unit is authorized by CAMMESA (in Spanish, “Habilitación
Comercial”) to sell electric energy through the grid under
the applicable commercial conditions;
●
“CVP”
refers to Variable Cost of Production of producing energy, which
may be declared by the generation companies to
CAMMESA;
●
“CVO
effect” refers to the CVO receivables update, and interests
triggered by the CVO Plant Commercial Operation
Approval;
●
“Ecogas”
refers collectively to Distribuidora de Gas Cuyana
(“DGCU”), Distribuidora de Gas del Centro
(“DGCE”), and their controlling company Inversora de Gas del Centro
(“IGCE”);
●
“Energía
Base” (legacy energy) refers to the regulatory framework
established under Resolution SE No. 95/13, as amended,
currently regulated by Resolution SE No. 31/20;
●
“FONINVEMEM”
or “FONI”, refers to the Fondo para Inversiones Necesarias que Permitan
Incrementar la Oferta de Energía Eléctrica en el Mercado
Eléctrico Mayorista (the Fund for Investments Required
to Increase the Electric Power Supply) and Similar Programs,
including Central Vuelta de Obligado (CVO) Agreement;
●
“MATER”,
refers to Mercado a Término de Energía Renovable or Term
Market for Renewable Energy, and is the regulatory framework that
allows generators to sell electric energy from renewable sources
directly to large users.
●
“p.p.”,
refers to percentage points;
●
“PPA”
refers to
|
Av.
Thomas Edison 2701
C1104BAB
– City of Buenos Aires
Republic
of Argentina
|
Tel
(+54 11) 4317 5000 ext. 2192
inversores@centralpuerto.com
www.centralpuerto.com
|
Results for the Quarter and First Half
Ended on June 30, 2020
Disclaimer
Rounding amounts and percentages: Certain amounts and percentages
included in this release have been rounded for ease of
presentation. Percentage figures included in this release have not
in all cases been calculated on the basis of such rounded figures,
but on the basis of such amounts prior to rounding. For this
reason, certain percentage amounts in this release may vary from
those obtained by performing the same calculations using the
figures in the financial statements. In addition, certain other
amounts that appear in this release may not sum due to
rounding.
This release contains certain metrics, including information per
share, operating information, and others, which do not have
standardized meanings or standard methods of calculation and
therefore such measures may not be comparable to similar measures
used by other companies. Such metrics have been included herein to
provide readers with additional measures to evaluate the
Company’s performance; however, such measures are not
reliable indicators of the future performance of the Company and
future performance may not compare to the performance in previous
periods.
OTHER INFORMATION
Central
Puerto routinely posts important information for investors in the
Investor Relations support section on its website,
www.centralpuerto.com. From time to time, Central Puerto may use
its website as a channel of distribution of material Company
information. Accordingly, investors should monitor Central
Puerto’s Investor Support website, in addition to following
the Company’s press releases, SEC filings, public conference
calls and webcasts. The information contained on, or that may be
accessed through, the Company’s website is not incorporated
by reference into, and is not a part of, this release.
CAUTIONARY STATEMENTS RELEVANT TO FORWARD-LOOKING
INFORMATION
This release contains certain forward-looking information and
forward-looking statements as defined in applicable
securities laws (collectively referred to in this Earnings Release
as “forward-looking statements”) that constitute forward-looking statements.
All statements other than statements of historical fact are
forward-looking statements. The words
‘‘anticipate’’,
‘‘believe’’,
‘‘could’’,
‘‘expect’’,
‘‘should’’,
‘‘plan’’,
‘‘intend’’,
‘‘will’’,
‘‘estimate’’ and
‘‘potential’’, and similar
expressions, as they relate to the Company, are intended to
identify forward-looking statements.
Statements regarding possible or assumed future results of
operations, business strategies, financing plans, competitive
position, industry environment, potential growth opportunities, the
effects of future regulation and the effects of competition,
expected power generation and capital expenditures plan, are
examples of forward-looking statements. Forward-looking statements are necessarily based upon a
number of factors and assumptions that, while considered reasonable
by management, are inherently subject to significant business,
economic and competitive uncertainties and contingencies,
which may cause the actual results, performance or achievements of
the Company to be materially different from any future results,
performance or achievements expressed or implied by the
forward-looking statements.
|
Av.
Thomas Edison 2701
C1104BAB
– City of Buenos Aires
Republic
of Argentina
|
Tel
(+54 11) 4317 5000 ext. 2192
inversores@centralpuerto.com
www.centralpuerto.com
|
Results for the Quarter and First Half
Ended on June 30, 2020
The Company assumes no obligation to update forward-looking
statements except as required under securities laws. Further
information concerning risks and uncertainties associated with
these forward-looking statements and the Company’s business
can be found in the Company’s public disclosures filed on
EDGAR (www.sec.gov).
Adjusted EBITDA
In this release, Adjusted EBITDA, a non-IFRS financial measure, is
defined as net income for the year, plus finance expenses, minus finance income, minus share of the profit of associates, minus
depreciation and amortization, plus income tax expense, plus depreciation and amortization, minus net results of discontinued
operations.
Adjusted EBITDA is believed to provide useful supplemental
information to investors about the Company and its results.
Adjusted EBITDA is among the measures used by the Company’s
management team to evaluate the financial and operating performance
and make day-to-day financial and operating decisions. In addition,
Adjusted EBITDA is frequently used by securities analysts,
investors and other parties to evaluate companies in the industry.
Adjusted EBITDA is believed to be helpful to investors because it
provides additional information about trends in the core operating
performance prior to considering the impact of capital structure,
depreciation, amortization and taxation on the
results.
Adjusted EBITDA should not be considered in isolation or as a
substitute for other measures of financial performance reported in
accordance with IFRS. Adjusted EBITDA has limitations as an
analytical tool, including:
●
Adjusted
EBITDA does not reflect changes in, including cash requirements
for, working capital needs or contractual commitments;
●
Adjusted
EBITDA does not reflect the finance expenses, or the cash
requirements to service interest or principal payments on
indebtedness, or interest income or other finance
income;
●
Adjusted
EBITDA does not reflect income tax expense or the cash requirements
to pay income taxes;
●
although
depreciation and amortization are non-cash charges, the assets
being depreciated or amortized often will need to be replaced in
the future, and Adjusted EBITDA does not reflect any cash
requirements for these replacements;
|
Av.
Thomas Edison 2701
C1104BAB
– City of Buenos Aires
Republic
of Argentina
|
Tel
(+54 11) 4317 5000 ext. 2192
inversores@centralpuerto.com
www.centralpuerto.com
|
Results for the Quarter and First Half
Ended on June 30, 2020
●
although
share of the profit of associates is a non-cash charge, Adjusted
EBITDA does not consider the potential collection of dividends;
and
●
other
companies may calculate Adjusted EBITDA differently, limiting its
usefulness as a comparative measure.
The Company compensates for the inherent limitations associated
with using Adjusted EBITDA through disclosure of these limitations,
presentation of the Company’s consolidated financial
statements in accordance with IFRS and reconciliation of Adjusted
EBITDA to the most directly comparable IFRS measure, net income.
For a reconciliation of the net income to Adjusted EBITDA, see the
tables included in this release.
|
Av.
Thomas Edison 2701
C1104BAB
– City of Buenos Aires
Republic
of Argentina
|
Tel
(+54 11) 4317 5000 ext. 2192inversores@centralpuerto.com
www.centralpuerto.com
|