Central Puerto S.A 6-K, filed May 28, 2020
Central Puerto S.A. (CEPU)
6-K
2020-05-28
For: 2020-05-27
View Original
Added on
April 11, 2026
About this 6-K
Central Puerto S.A filed this 6-K on May 28, 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 May, 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.
Results for the Quarter
Ended on March 31, 2020
Central Puerto: 10% increase in energy generation, commencement of
operations of Los Olivos (22.8 MW) and increase of power of Manque
(57 MW) wind farm
New
York Stock Exchange
Ticker: CEPU
1 ADR =
10 ordinary shares
Bolsas
y Mercados Argentinos
Ticker: CEPU
Contact information:
Chief
Financial Officer
Fernando Bonnet
Investor
Relations Officer
Tomás Daghlian
Tel
(+54 11) 4317 5000 ext.2192
inversores@centralpuerto.com
www.centralpuerto.com
Buenos Aires, May 27 - Central Puerto S.A (“Central
Puerto” or the “Company”) (NYSE: CEPU), a leading
power generation company in Argentina, as measured by generated
power, reports its consolidated financial results for the
First Quarter 2019 (“1Q2020”).
A conference call to discuss the results of the Fourth Quarter 2019
will be held on May 28, 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 ended on March 31,
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 ended on March 31, 2019, is
not comparable to the Financial Statements previously published by
the company.
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 ended
on March 31, 2020 and the notes thereto, which will be available on
the Company’s website.
1Q2020 energy generation increased 10% to 3,908 GWh, as compared to 3,549 GWh during the
same period of 2019 (see section C. Main Operating Metrics),
due to a 88% increase in renewable generation, due to the new wind
farms, a 10% increase in hydro generation due to higher waterflow
during the period, and a 5% increase in thermal generation, due to
the expansion of the installed capacity and increase in demand
related to higher temperatures during the quarter period
(for more information see
section C. Main Operating Metrics).
|
Tel
(+54 11) 4317 5000 ext. 2192
inversores@centralpuerto.com
www.centralpuerto.com
|
|
Av.
Thomas Edison 2701
C1104BAB
– City of Buenos Aires
Republic
of Argentina
|
2
Results for the Quarter
Ended on March 31, 2020
Thermal units reached 93% availability, compared to 90% in
the 1Q2019, and a market average of 83% for the
1Q2020.
1Q2020 Net income was Ps. 0.62 per ordinary share or Ps. 6.2 per
ADR (for more information
see section D. Financial).
|
“Although the current times are particularly challenging, we
are continuing with our expansion plan.
During the first quarter 2020 we achieved the COD of Los Olivos
wind farm (22.8 MW) and increased the capacity of the wind farms
Manque and La Castellana II, increasing our power available to
provide electricity directly to our customers under the term market
(MATER).
We will continue developing our operations and business plans under
rigorous protocols to protect our employees and other stakeholders,
while at the same time serving our clients.”
Jorge Rauber, CEO of Central Puerto
|
Renewable energy
Los Olivos wind farm reached commercial operation date (COD) for
22.8 MW. On February 21, 2020, wind farm Los Olivos
commenced commercial operations for 22.8 MW. This wind farm sells
energy directly to large users under the MATER regulatory
framework.
Manque wind farm increased power capacity to 57 MW. During
the 1Q2020, the installed capacity of this wind farm was increased
in 19 MW, reaching now the total amount of the project of 57 MW.
This wind farm sell energy directly to large users under the MATER
regulatory framework.
La Castellana II wind farm increase of power capacity to 15.2
MW. During the 1Q2020, the wind farm La Castellana II was
authorized to increase the output to the grid, reaching now the
total amount of the project of 15.2 MW. This wind farm sell energy
directly to large users under the MATER regulatory
framework.
|
Tel
(+54 11) 4317 5000 ext. 2192
inversores@centralpuerto.com
www.centralpuerto.com
|
|
Av.
Thomas Edison 2701
C1104BAB
– City of Buenos Aires
Republic
of Argentina
|
3
Results for the Quarter
Ended on March 31, 2020
Energy from MATER wind farms 100% contracted. Following the
COD of Manque and Los Olivos, all the wind farms developed under
MATER regulatory framework, Resolution
No. 281-E/17, are operative and
have already signed long-term PPAs, with prices set in US
dollars with private customers for 100% of their capacity.
B. Recent news
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.
Pursuant
to Decree 297/2020, the electricity generation activity is
considered an essential service and thus, exempt from the work
attendance and travel restrictions. As a consequence of the effects
of the Quarantine on the economic activity, among other factors,
electric energy demand decreased 11.5% during April 2020, the first
month in which the measure was fully in force, compared to the
April 2019, according to data from CAMMESA.
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.
Additionally,
in the case of La Genoveva I, on February 21, 2020, Vestas
Argentina S.A. (“Vestas”), the supplier of the wind
turbines of the La Genoveva I wind project, notified the Company
that the COVID-19 outbreak affected its manufacturing activities
worldwide, causing delays on the supply chain for the delivery of
certain chinese-origin manufacturing components required for the
completion of the wind turbines. In its communication, Vestas did
not specify the impact that this situation may have on the agreed
schedule. Furthermore, logistic restrictions imposed by the federal
and local governments may also slow down the
construction.
In the
case of the Terminal 6 project, the construction was restarted
after one month with one third of the personnel that was working
prior to the Quarantine, due to the health and safety protocols
agreed with the health authorities. Additionally, the project may
also be affected by travel restrictions for international
specialists that participate in the construction.
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 goverment. For more details
regarding the risks related to the Covid-19 pandemic crisis on the
company, please refer the latest 20-F filing
with the SEC, “Item 3.D. Risk Factors—Risks Relating to
Argentina”, in particular “—the Novel Coronavirus
could have an adverse effect on our business operations and
financial conditions”).
|
Tel
(+54 11) 4317 5000 ext. 2192
inversores@centralpuerto.com
www.centralpuerto.com
|
|
Av.
Thomas Edison 2701
C1104BAB
– City of Buenos Aires
Republic
of Argentina
|
4
Results for the Quarter
Ended on March 31, 2020
Thermal energy
New Regulatory framework for Energía Base Units.
On February 27, 2020 the Secretariat
of Energy issued Res. 31/2020, which replaces the tariff scheme for
the Energía Base energy generation units. The main changes
were:
■
Prices
are set in argentine pesos.
■
Initial variable Energy prices
remained almost unchanged, although
denominated in argentine pesos. The implicit foreign exchange rate
between the new price set in argentine pesos and the old price set
in US dollars is Ps 60 per US dollar, which is similar to the
average exchange rate of January 2020 of Ps. 60.01 per US
dollar1.
■
Initial Power prices for thermal
units were reduced ~ 16% (considering the implicit exchange
rate of Ps. 60 per US, as mentioned above) and set in argentine
pesos.
■
Generation
units with less than 30% Utilization Factor in the last twelve
months receive 60% of the price, compared to up to 70% before.
Additionally, if the Utilization Factor is between the 30-70%
threshold the generation units receive a linear proportion between
60 and 100% of the power price, and if the Utilization Factor is
70% or greater, the generation units receive 100% of the price (see
table below).
■
Initial fixed Power prices for hydro
plants were reduced ~ 45 %
(considering the implicit exchange rate of Ps. 60 per US, as
mentioned above) and set in argentine pesos.
■
A new remuneration for generation
in hours of maximum power demand was established (see table below) that, taking
into consideration the equipment the generating company has, is
expected to partially mitigate the fixed power price
reduction.
■
The
prices set in pesos to have a monthly adjustment with 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 the Secretary of Energy, in the context of the
Covid-19 pandemic crisis, instructed CAMMESA to postpone until
further notice, the application of "Annex VI - Update of the values
established in Argentine Pesos" (“Annex
IV”) of Resolution SE No. 31/2020.
The table below shows the details of the main initial prices
effective for February 2020
applicable to Central Puerto’s
units, by source of generation, according to Resolution
31/2020:
|
Tel
(+54 11) 4317 5000 ext. 2192
inversores@centralpuerto.com
www.centralpuerto.com
|
|
Av.
Thomas Edison 2701
C1104BAB
– City of Buenos Aires
Republic
of Argentina
|
5
Results for the Quarter
Ended on March 31, 2020
|
Items
|
Thermal
|
Hydro
|
|
Power capacity payments Res. 31/20201
|
Up to Ps. 360,000 per MW per month during Summer and
Winter
(December,
January, February, June, July and August)
Up to Ps. 270,000 per MW per month during Spring and
Autumn
(March,
April, May, September, October and November)
These
prices, are multiplied by a percentage, which depends on the
average Utilization Factor (UF) of each unit during the previous
last twelve months (mobile year):
● If UF >= 70%, the unit receives
100% of the
price
● If the is between 30 and 70%, the
machine receives UF*+0.30 of
the price (lineal proportion)
● If
UF<30%, unit
receives 60% of the
price
|
Ps. 99,000 per MW per month
|
|
Energy payments Res. 31/20202
|
Ps. 324 per MWh for generation with natural gas
Ps. 504 per MWh for generation with fuel oil/gas oil
|
Ps. 294 per MWh
|
|
|
The machines that generated energy during the 50 hours of higher
power demand will receive a remuneration using the following
formulas, respectively:
|
|
|
Payment for generation in hours of maximum power
demand
|
Potgemhrt1 x PrecPHRT x FRPHRT1 + Potgemhrt2 x PrecPHRT x
FURHRT2
Where:
PrecPHMRT: is Ps. 37,500 / MW
Potgemhrt1 and Potgemhrt2: are the average power generated in the
hours of maximum requirement HMRT-1 and HMRT-2, respectively of the
corresponding month.
|
Potopmhrt1 x PrecPOHRT x FRPHRT1 + Potopmhrt2 x PrecPOHRT x
FURHRT2
PrecPOHMRT: is Ps. 27,500 / MW for large hydro plant (> 300
MW)
Potopmhrt1 and Potopmhrt1: are the average power operated in the
hours of maximum requirement HMRT-1 and HMRT-2,
respectively.
|
|
|
FRPHRT1 and FRPHRT2: are the requirement factor for the first and
second 25 hours, respectively, of highest thermal requirement of
each month in each period according to table below:
|
|
|
|
FRPHMRT [p.u.]
|
|
|
Summer and Winter
|
Autumn and Spring
|
|
|
HMRT-1
|
1.2
|
0.2
|
|
HMRT-2
|
0.6
|
0.0
|
|
Adjustment
of prices
Annex
IV3
|
Monthly
adjustment using a mix of 60% of the Consumer Price Index (IPC) and
40% of the Wholesale Price Index (IPIM) accumulated between
December 2019 and two months prior (T-2) to month of each
transaction
|
|
1 Effective prices for capacity payment depended
on the availability of each unit, and the achievement of the
Guaranteed Bid Capacity (DIGO in Spanish) that each generator may
send periodically to CAMMESA.
2 Energy payments above mentioned includes the
tariffs for energy generated and energy operated as defined by Res.
SE 31/2020.
A
complete copy of Res. SE 31/2020, can be found on the webpage of
the Official Gazette of the Republic Argentina: https://www.boletinoficial.gob.ar/.
3.
On April 8, 2020 the Secretary
of Energy, in the context of the Covid-19 pandemic crisis,
instructed CAMMESA to postpone until further notice, the
application of "Annex VI - Update of the values
established in Argentine Pesos" (“Annex
IV”) of Resolution SE No. 31/2020.
|
Tel
(+54 11) 4317 5000 ext. 2192
inversores@centralpuerto.com
www.centralpuerto.com
|
|
Av.
Thomas Edison 2701
C1104BAB
– City of Buenos Aires
Republic
of Argentina
|
6
Results for the Quarter
Ended on March 31, 2020
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. The normal lead time for a complete reparation or the
replacement of this equipment is around twelve months. However, the
Company is evaluating alternatives to return the unit to service
sooner. Although this may reduce the energy generation from the
unit during the time the equipment remains unavailable, the Company
has a Comprehensive operational risk and Loss of Profits insurance
that covers reparation costs and the consequential lost
profits.
Interest in TSM and TMB. As of March 31, 2020, the Company
had and interest if of 30.9464% in TMB and 30.8752% in TSM, which
operate the Manuel Belgrano and San Martín plants of the
FONINVEMEM agreement, respectively.
After
ten years of operations, which occurred on January 7, 2020 for TMB
and on February 2, 2020 for TSM, both companies are entitled to
receive property rights to such power plants from the respective
trusts currently holding the ownership of them. At such time, the
term of the trusts expires and the Argentine Government, that
financed part of the construction of both plants, should be
incorporated as a shareholder of TSM and TMB.
On
January 3, 2020, the Argentine Government sent a notice to the
Company stating that, in accordance with FONINVEMEM Agreement, TSM
and TMB should perform all necessary acts to incorporate the
Argentine Government as shareholder of both companies, claiming, in
each case, the following equity interest rights: 65.006% in TMB and
68.826% in TSM.
|
Tel
(+54 11) 4317 5000 ext. 2192
inversores@centralpuerto.com
www.centralpuerto.com
|
|
Av.
Thomas Edison 2701
C1104BAB
– City of Buenos Aires
Republic
of Argentina
|
7
Results for the Quarter
Ended on March 31, 2020
On
January 9, 2020, Central Puerto, together with the other generation
companies, shareholders of TSM and TMB, replied such notice stating
that the Argentine Government’s equity interest claims does
not correspond with the contributions made for the construction of
the power plants under the terms of the FONINVEMEM Agreement that
give rights to claim such equity interest. On March 4, 2020, the
Argentine Government reiterated its previous claim to the Company.
As of the date of this release, Central Puerto is evaluating future
steps.
Notwithstanding
the prior, on May 4 and May 8, 2020, the Company participated in
the Extraordinary Shareholders’ Meetings of TMB and TSM,
respectively, in which the entry of the Argentine Government was
allowed as a shareholder of TMB and TSM according to the
shareholding defined by the Argentine Government for the sole
purpose of complying with the suspensive condition imposed for the
incorporation of the Argentine Government and for allowing the
respective trusts to transfer the trust assets (the generation
plants) to TMB and TSM (trustees of the trust contracts), but, in
both cases, making the corresponding reservation of rights to
continue the claims already initiated as mentioned
above.
C. Main operating metrics
The table below sets forth key operating metrics for the 1Q2020,
compared to the 4Q2019 and the 1Q2019:
|
Key Metrics
|
1Q 2020
|
4Q 2019
|
1Q 2019
|
Var % (1Q/1Q)
|
|
Continuing Operations
|
|
|
|
|
|
Energy Generation (GWh)
|
3,908
|
4,101
|
3,549
|
10%
|
|
-Electric Energy Generation- Thermal*
|
2,686
|
2,816
|
2,547
|
5%
|
|
-Electric Energy Generation – Hydro
|
929
|
1,043
|
846
|
10%
|
|
-Electric Energy Generation – Wind
|
294
|
241
|
156
|
88%
|
|
Installed capacity (MW;
EoP1)
|
4,316
|
4,273
|
3,812
|
13%
|
|
-Installed capacity -Thermal (MW)
|
2,589
|
2,589
|
2,222
|
17%
|
|
-Installed capacity - Hydro (MW)
|
1,441
|
1,441
|
1,441
|
0%
|
|
-Installed capacity - Wind (MW)
|
286
|
243
|
149
|
92%
|
|
Availability -
Thermal2
|
93%
|
93%
|
90%
|
3 p.p.
|
|
Steam production (thousand Tons)
|
255
|
254
|
277
|
(8%)
|
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.
|
Tel
(+54 11) 4317 5000 ext. 2192
inversores@centralpuerto.com
www.centralpuerto.com
|
|
Av.
Thomas Edison 2701
C1104BAB
– City of Buenos Aires
Republic
of Argentina
|
8
Results for the Quarter
Ended on March 31, 2020
In the 1Q2020, energy generation increased 10% to 3,908 GWh,
compared to 3,549 GWh in the 1Q2019, As a reference, domestic energy generation
increased 4.2% during the 1Q2020, compared to the 1Q2019, according
to data from CAMMESA.
The increase in the energy generated by Central Puerto was
due to:
a) a
88% increase in the electricity generation from wind farms, due to
the operation during the full quarter of La Castellana II (14.4 MW, increased to 15.2 MW
starting on February 22, 2020) and La Genoveva II (41.8 MW) wind
farms that commenced their commercial operations during the 3Q2019.
Additionally, as mentioned above, during the December 2019, the
wind farm Manque reached the COD for 38 MW, which was increased to
53.2 MW starting on January 23, 2020, and to 57 MW starting on
March 3, 2020, and the wind farm Los Olivos (22.8MW) reached its
COD on February 22, 2020.
b) a
10% increase in energy generation form the hydro plant Piedra del
Águila due to higher waterflow in the Limay and Collón
Curá rivers, and
c) a 5%
increase in the thermal generation, which was positively affect by
the commencement of operations of the new cogeneration unit of
Luján de Cuyo and the purchase of Brigadier López during
the 2Q2019) and an increase in energy demand due to higher
temperatures in Argentina during the quarter, which was partially
offset by 11 days of the Quarantine, during the last days of March
2020.
During 1Q2020, machine availability for thermal units reached 93%,
compared to 90% in 1Q2020, showing a sustained level and well above
the market average availability for thermal units for the same
period of 83%, according to data from CAMMESA.
Finally, steam production showed a decrease of 8%, totaling 255,000
tons produced during 1Q2020 compared to 277,000 tons during the
1Q2019, 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.
|
Tel
(+54 11) 4317 5000 ext. 2192
inversores@centralpuerto.com
www.centralpuerto.com
|
|
Av.
Thomas Edison 2701
C1104BAB
– City of Buenos Aires
Republic
of Argentina
|
9
Results for the Quarter
Ended on March 31, 2020
D. Financials
Main financial magnitudes of continuing operations
|
Million Ps.
|
1Q 2020
|
4Q 2019
|
1Q 2019
|
Var % (1Q/1Q)
|
|
|
Unaudited, subject to limited review according to rule ISRE
2410
|
Unaudited2
|
Unaudited, subject to limited review according to rule ISRE
2410
|
|
|
Revenues
|
8,005
|
12,272
|
9,251
|
(13%)
|
|
Cost of
sales
|
(3,318)
|
(6,696)
|
(5,416)
|
(39%)
|
|
Gross profit
|
4,687
|
5,576
|
3,835
|
22%
|
|
Administrative and selling expenses
|
(626)
|
(903)
|
(674)
|
(7%)
|
|
Operating income before other operating results
|
4,060
|
4,673
|
3,161
|
28%
|
|
Other operating results, net
|
2,383
|
(1,881)
|
4,277
|
(44%)
|
|
Operating income
|
6,443
|
2,791
|
7,438
|
(13%)
|
|
Depreciations
and Amortizations
|
1,161
|
1,816
|
713
|
63%
|
|
Adjusted EBITDA
|
7,604
|
4,607
|
8,151
|
(7%)
|
|
1.
Includes, among others, the following concepts:
|
|
|
|
|
|
●
Foreign Exchange Difference and interests related to FONI
trade receivables
|
2,544
|
1,671
|
4,339
|
(41%)
|
|
●
Impairment on property, plant and equipment
|
(774)
|
-
|
-
|
N/A
|
|
Adjusted EBITDA excluding Foreign Exchange Difference and
interests related to FONI trade receivables and Impairment on
property, plant and equipment
|
5,834
|
2,936
|
3,812
|
53%
|
|
Average exchange rate of period
|
61.42
|
59.35
|
39.01
|
57%
|
|
Exchange rate end of period
|
64.47
|
59.89
|
43.35
|
49%
|
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.
|
Tel
(+54 11) 4317 5000 ext. 2192
inversores@centralpuerto.com
www.centralpuerto.com
|
|
Av.
Thomas Edison 2701
C1104BAB
– City of Buenos Aires
Republic
of Argentina
|
10
Results for the Quarter
Ended on March 31, 2020
Adjusted EBITDA Reconciliation
|
Million Ps.
|
1Q 2020
|
4Q 2019
|
1Q 2019
|
Var % (1Q/1Q)
|
|
|
Unaudited, subject to limited review according to rule ISRE
2410
|
Unaudited1
|
Unaudited, subject to limited review according to rule ISRE
2410
|
|
|
Consolidated
Net income for the period
|
956
|
1,434
|
1,825
|
(48%)
|
|
Loss on
net monetary position
|
(314)
|
(115)
|
1,979
|
(116%)
|
|
Financial
expenses
|
4,355
|
2,486
|
2,187
|
99%
|
|
Financial
income
|
(130)
|
(1,504)
|
(567)
|
(77%)
|
|
Share
of the profit of an associate
|
(54)
|
(215)
|
(143)
|
(62%)
|
|
Income
tax expenses
|
1,630
|
706
|
2,158
|
(24%)
|
|
Depreciation
and amortization
|
1,161
|
1,816
|
713
|
63%
|
|
Adjusted EBITDA
|
7,604
|
4,607
|
8,151
|
(7%)
|
|
1.
Includes, among others, the following concepts:
|
|
|
|
|
|
● Foreign Exchange
Difference and interests related to FONI trade
receivables
|
2,544
|
1,671
|
4,339
|
(41%)
|
|
● Impairment on
property, plant and equipment
|
(774)
|
-
|
-
|
N/A
|
|
Adjusted EBITDA excluding Foreign Exchange Difference and
interests related to FONI trade receivables and Impairment on
property, plant and equipment
|
5,834
|
2,936
|
3,812
|
53%
|
1Q 2020 Results Analysis
Revenues decreased 13% to Ps. 8,005 million in the 1Q2020,
as compared to Ps. 9,251 million in the 1Q2019. The decrease in
revenues was mainly affected by the abrogation of Resolution No.
70/2018, on December 30, 20194. Consequently, fuel remuneration for
units under Energía Base regulatory framework (and other
related concepts), amounted to Ps. 297 million during the 1Q2020,
compared to Ps. 3,750 million during the 1Q2019, 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).
1 4Q2019 figures where constructed, as the
difference between the 2019 and the 9M2019 financial figures,
respectively, informed in the Financial Statements for the quarter
and the nine month period ended on September 30, 2019, stated in
the measuring unit current at March 31, 2020.
3 4Q2019 figures where constructed, as the
difference between the 2019 and the 9M2019 financial figures,
respectively, informed in the Financial Statements for the quarter
and the nine month period ended on September 30, 2019, stated in
the measuring unit current at March 31, 2020.
4 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.
|
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|
|
Av.
Thomas Edison 2701
C1104BAB
– City of Buenos Aires
Republic
of Argentina
|
11
Results for the Quarter
Ended on March 31, 2020
Without
considering fuel remuneration, Revenues for the 1Q2020 would have
been Ps. 7,709
million, a 40% increase compared to Ps. 5,501 million. This
increase was due to:
(i)
a 3 percentage
points increase in the availability of the thermal units under
Energía Base, which was 93% during the 1Q2020, as compared to
90% during the 1Q2019,
(ii)
a 10% increase in
energy generation, that reached 3,908 GWh during the 1Q2020, as
compared to 3,549 GWh as explained above in section “C. Main
operating metrics”,
(iii)
a
higher-than-inflation increase in the exchange rates for the
1Q2020, which impacted prices set in US dollars, in terms of argentine pesos current at the end of
the reporting period. As a reference, the average foreign
exchange rate during 1Q2020 increased 57% compared to 1Q2019, while
the inflation rate for the twelve-month period ended on March 31,
2020, was 48%.
(iv)
an increase in Sales under contracts, which
amounted to Ps. 3,388 million during the 1Q2020, as compared to Ps.
768 million in the 1Q2019, 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
prices for units under the Energía Base Regulatory framework
established by Res. 31/2020, in force since February 1, 2020 (see
section A. 1Q2020 Highlights).
Gross profit increased 22% to Ps. 4,687 million in the
1Q2020, compared to Ps. 3,835 million in 1Q2019. This
increase was due to (i) the above-mentioned variation in revenues,
and (ii) a 39% reduction in the costs of sales that totaled Ps.
3,318 million, compared to Ps. 5,416 million in the 1Q2019. This
decrease in the cost of sales was primarily driven by:
(i)
A 81% 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. 650 million during the 1Q2020,
as compared to Ps. 3,348 million in the 1Q2019, mainly due to the
cost of the self-supplied fuel purchased in accordance to Res.
70/18, which was in force during the 1Q2019, but was abrogated on
December 30, 2019, as described above;
|
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|
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Thomas Edison 2701
C1104BAB
– City of Buenos Aires
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of Argentina
|
12
Results for the Quarter
Ended on March 31, 2020
This
was partially offset by:
(ii)
a 29% increase in
non-fuel-related costs of production, which totaled Ps. 2,668
million in the 1Q2020, as compared to Ps. 2,069 million in the
1Q2019, 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 59% during the 1Q2020, as compared to 41% in
the 1Q2019. This change was mainly a consequence of (i) the
operation of purchase of self-supplied fuel, which was in force
during the 1Q2019 but not during the 1Q2020, 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, increased 28%
to Ps. 4,060 million, compared to Ps. 3,161 million in the
1Q2019. This increase was due to (i) the above-mentioned increase
in gross profits, and (ii) an decrease (in real terms) in
administrative and selling expenses that totaled Ps. 626 million in
the 1Q2020, a 7% decrease as compared to Ps. 674 million in the
1Q2019. This decrease was mainly driven by (i) a Ps. 76 million
reduction in compensation to employees, mainly related to a lower
profit-sharing annual bonus (pursuant to sections 12 and 33 of
Central Puerto’s bylaws), partially offset by (ii) higher
costs related to the new expansion projects.
Adjusted EBITDA decreased 7% to Ps. 7,604 million in the
1Q2020, compared to Ps. 8,151 million in the 1Q2020. This
decrease was mainly due to (i) a Ps. 2,426 million gain during the
1Q2020, from the foreign exchange difference on operating assets,
mainly the FONI trade receivables, compared to 3,868 million during
the 1Q2019, mainly due to a 8% depreciation of the argentine peso
during the 1Q2020, compared to 15% during the 1Q2019, and a lower
balance of trade receivables maintained during the quarter, and a
(ii) Ps. 774 million non-cash loss related to the property, plant
and equipment impairment accrued during the 1Q2020 on two Siemens
branded generating groups stored in the supplier’s
facilities, which were valued using the fair value less cost of
sale approach; which was partially offset by (iii) the increase in
operating results before other operating income, net mentioned
above, and (iv) higher interests on trade receivables, mainly from
CAMMESA, which during the 1Q2020 amounted 767 million, as compared
to Ps. 459 million in the 1Q2019.
Adjusted
EBITDA excluding Foreign Exchange Difference and interests related
to FONI trade receivables and Impairment on property, plant and
equipment increased 53% to Ps. 5,834 million in the 1Q2020,
compared to Ps. 3,812 million in the 1Q2020.
|
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www.centralpuerto.com
|
|
Av.
Thomas Edison 2701
C1104BAB
– City of Buenos Aires
Republic
of Argentina
|
13
Results for the Quarter
Ended on March 31, 2020
Consolidated Net income was Ps. 956 million and Net income for
shareholder was Ps. 933 million or Ps. 0.62 per share, in the
1Q2020, compared to Ps. 1,825 million and 1,869 million,
respectively, or a loss of Ps. 1.24 per share, in the 1Q2019. In
addition to the above-mentioned factors, net income was (i)
negatively impacted by higher financial expenses that amounted to
Ps. 4,355 million in the 1Q2020, compared to Ps. 2,187 million in
the 1Q2019, 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) lower financial income which amounted to Ps. 130
million during the 1Q2020, compared to Ps. 567 million in the
1Q2019, due to lower interest rates during the quarter, and lower
foreign exchange difference over US dollar denominated financial
assets (which excludes FONI and other trade receivables). As a
reference, during the 1Q2020, the peso depreciated 8%, compared to
15%, during the 1Q2019. Additionally, the results from the share of
profit of associates decreased to Ps. 54 million in the 1Q2020, as
compared to Ps. 143 million in the 1Q2019, mainly due to lower
results from the operations of Ecogas.
Finally,
the gain on net monetary position totaled Ps. 314 million during
the 1Q2020, as compared to a loss on the net monetary position of
Ps. 1,979 million in the 1Q2019.
FONI collections totaled Ps. 1,581 million in the 1Q2020,
-including VAT- (approximately equivalent to US$ 24.5 million, at
the exchange rate as of March 31, 2020), associated to the FONI
trade receivables for San Martín, Manuel Belgrano, and Vuelta
de Obligado Plants.
Financial Situation
As of
March 31, 2020, the Company and its subsidiaries had Cash and Cash
Equivalents of Ps. 1.6 billion, and Other Current Financial
Assets of Ps. 5.4 billion.
Loans
and borrowings were received to finance the construction of La
Genoveva I and the recent expansion of the installed capacity,
which includes the construction of the Luján de Cuyo new
thermal unit, and the wind farms La Castellana I, Achiras, La
Castellana II, and La Genoveva II, and the acquisition of the
Brigadier López Plant. The following chart breaks down the Net
Debt position of Central Puerto (on a stand-alone basis) and its
subsidiaries:
|
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|
|
Av.
Thomas Edison 2701
C1104BAB
– City of Buenos Aires
Republic
of Argentina
|
14
Results for the Quarter
Ended on March 31, 2020
|
Million Ps.
|
|
As of
March 31, 2020
|
|
Cash and cash equivalents (stand-alone)
|
|
688
|
|
Other financial assets (stand-alone)5
|
|
3,607
|
|
Financial Debt (stand-alone)
|
|
(23,372)
|
|
Composed of:
Financial Debt (current) (Central
Puerto S.A. stand-alone)
|
(9,268)
|
|
|
Financial Debt (non-current) (Central
Puerto S.A. stand-alone)
|
(14,104)
|
|
|
Subtotal Central Puerto stand-alone Net Debt Position
|
|
(19,077)
|
|
Cash and cash equivalents of subsidiaries
|
|
911
|
|
Other financial assets of subsidiaries
|
|
1,819
|
|
Financial Debt of subsidiaries
Composed of:
|
|
(17,778)
|
|
Financial Debt of subsidiaries
(current)
|
(1,564)
|
|
|
Financial Debt of subsidiaries
(non-current)
|
(16,214)
|
|
|
Subtotal Subsidiaries Net Debt Position
|
|
(15,048)
|
|
Consolidated Net Debt Position
|
|
(34,125)
|
Cash Flows of the 1Q 2020
|
Million Ps.
|
1Q 2020
ended on March 31, 2020
|
|
Cash and Cash equivalents at the beginning
|
1,610
|
|
Net cash flows provided by operating activities
|
3,492
|
|
Net cash flows used in investing activities
|
(1,206)
|
|
Net cash flows used in financing activities
|
(1,453)
|
|
Exchange difference and other financial results
|
(742)
|
|
Loss on net monetary position by cash and cash
equivalents
|
(102)
|
|
Cash and Cash equivalents at the end
|
1,599
|
5 Excludes intercompany loans.
|
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(+54 11) 4317 5000 ext. 2192
inversores@centralpuerto.com
www.centralpuerto.com
|
|
Av.
Thomas Edison 2701
C1104BAB
– City of Buenos Aires
Republic
of Argentina
|
15
Results for the Quarter
Ended on March 31, 2020
Net cash provided by operating activities was Ps.
3,492 million during the 1Q 2020. This cash flow arises
from (i) Ps. 6,443 million from the operating income obtained
during the 1Q2020, (ii) Ps. 5,264 million due to a decrease in the
stock of trade receivables, mainly related to the FONI collections,
(iii) Ps. 778 million in collection of interests from clients,
including the ones from FONI, during the period, which was
partially offset by (iv) the non-cash items included in the
operating income, including Ps. 2,426
million from foreign exchange difference on trade receivables and a
Ps. 774 million non-cash impairment of property, plant and
equipment charge; (v) Ps. 1,377 million from income tax paid, and
(vi) a 3,988 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. 1,206 million in 1Q
2020. This amount was mainly due to (i) Ps. 4,504 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 the (ii) Ps. 3,298 million obtained from the
sell of short-term financial assets, net.
Net cash used in financing activities was Ps. 1,453 million in the
1Q 2020. This amount was the result of Ps. 297 million Bank
and investment accounts overdrafts paid, net, (ii) Ps. 259 million
in loans paid, mainly related to the loans received for the
expansion projects, and (iii) Ps. 898 million in interest and
financial expenses paid, mainly related to those
loans.
|
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www.centralpuerto.com
|
|
Av.
Thomas Edison 2701
C1104BAB
– City of Buenos Aires
Republic
of Argentina
|
16
Results for the Quarter
Ended on March 31, 2020
E. Tables
a.
Consolidated Statement of Income
|
|
1Q 2020
|
1Q
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
|
8,005,195
|
9,251,226
|
|
Cost of
sales
|
(3,318,445)
|
(5,416,137)
|
|
Gross
income
|
4,686,750
|
3,835,089
|
|
|
|
|
|
Administrative and selling
expenses
|
(626,303)
|
(674,359)
|
|
Other operating
income
|
3,201,948
|
4,327,095
|
|
Other operating
expenses
|
(44,798)
|
(49,901)
|
|
Property plant and equipment
impairment
|
(774,443)
|
-
|
|
Operating
income
|
6,443,154
|
7,437,924
|
|
|
|
|
|
Gain (loss) on net monetary
position
|
313,701
|
(1,978,769)
|
|
Finance income
|
130,243
|
567,281
|
|
Finance
expenses
|
(4,355,152)
|
(2,186,755)
|
|
Share of the profit of
associates
|
54,136
|
143,414
|
|
Income before
income tax
|
2,586,082
|
3,983,095
|
|
Income tax for
the period
|
(1,629,813)
|
(2,158,343)
|
|
Net income for the period
|
956,269
|
1,824,752
|
|
Net total comprehensive income for the period
|
956,269
|
1,824,752
|
|
|
|
|
|
Attributable
to:
|
|
|
|
-Equity holders of the
parent
|
932,638
|
1,869,375
|
|
-Non-controlling
interests
|
23,631
|
(44,623)
|
|
|
956,269
|
1,824,752
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
Basic and diluted
(Ps.)
|
0.62
|
1.24
|
|
Tel
(+54 11) 4317 5000 ext. 2192
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www.centralpuerto.com
|
|
Av.
Thomas Edison 2701
C1104BAB
– City of Buenos Aires
Republic
of Argentina
|
17
Results for the Quarter
Ended on March 31, 2020
b.
Consolidated Statement of Financial Position
|
|
As of March 31,
2020
|
As of December 31,
2019
|
|
|
Unaudited, subject to limited review according to rule ISRE
2410
|
Audited
|
|
|
Thousand Ps.
|
Thousand Ps.
|
|
Assets
|
|
|
|
Non-current
assets
|
|
|
|
Property, plant and
equipment
|
63,293,110
|
61,118,809
|
|
Intangible
assets
|
7,197,049
|
7,620,117
|
|
Investment in
associates
|
3,766,295
|
3,719,697
|
|
Trade and other
receivables
|
25,623,503
|
26,140,464
|
|
Other non-financial
assets
|
1,006,935
|
742,938
|
|
Inventories
|
148,954
|
155,413
|
|
|
101,035,846
|
99,497,438
|
|
Current
assets
|
|
|
|
Inventories
|
725,584
|
708,883
|
|
Other non-financial
assets
|
984,536
|
1,084,729
|
|
Trade and other
receivables
|
14,171,258
|
16,860,867
|
|
Other financial
assets
|
5,426,526
|
8,299,196
|
|
Cash and cash
equivalents
|
1,599,387
|
1,610,383
|
|
|
22,907,291
|
28,564,058
|
|
Total
assets
|
123,943,137
|
128,061,496
|
|
|
|
|
|
Equity and
liabilities
|
|
|
|
Equity
|
|
|
|
Capital stock
|
1,514,022
|
1,514,022
|
|
Adjustment to capital
stock
|
19,971,268
|
19,971,268
|
|
Legal reserve
|
2,564,266
|
2,564,266
|
|
Voluntary
reserve
|
28,578,734
|
28,578,734
|
|
Retained
earnings
|
11,216,235
|
10,283,597
|
|
Equity
attributable to shareholders of the parent
|
63,844,525
|
62,911,887
|
|
Non-controlling
interests
|
876,718
|
852,391
|
|
Total Equity
|
64,721,243
|
63,764,278
|
|
|
|
|
|
Non-current
liabilities
|
|
|
|
Other
non-financial liabilities
|
4,509,232
|
4,694,311
|
|
Other loans and
borrowings
|
30,318,641
|
33,080,739
|
|
Compensation
and employee benefits liabilities
|
254,275
|
247,162
|
|
Provisions
|
9,348
|
10,077
|
|
Deferred
income tax liabilities
|
7,309,612
|
6,802,333
|
|
|
42,401,108
|
44,834,622
|
|
|
|
|
|
Current
liabilities
|
|
|
|
Trade and other
payables
|
2,670,177
|
6,359,565
|
|
Other non-financial
liabilities
|
1,323,023
|
1,869,620
|
|
Other loans and
borrowings
|
10,831,668
|
8,651,873
|
|
Compensation and employee benefits
liabilities
|
554,510
|
753,205
|
|
Income tax
payable
|
1,414,411
|
1,798,736
|
|
Provisions
|
26,997
|
29,597
|
|
|
16,820,786
|
19,462,596
|
|
Total
liabilities
|
59,221,894
|
64,297,218
|
|
Total equity and
liabilities
|
123,943,137
|
128,061,496
|
|
Tel
(+54 11) 4317 5000 ext. 2192
inversores@centralpuerto.com
www.centralpuerto.com
|
|
Av.
Thomas Edison 2701
C1104BAB
– City of Buenos Aires
Republic
of Argentina
|
18
Results for the Quarter
Ended on March 31, 2020
c.
Consolidated Statement of Cash Flow
|
|
1Q 2020
|
1Q 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
|
2,586,082
|
3,983,095
|
|
|
|
|
|
Adjustments to
reconcile income for the period before income tax to net cash
flows:
|
|
|
|
Depreciation of property, plant and
equipment
|
699,439
|
556,528
|
|
Amortization of intangible
assets
|
461,822
|
156,868
|
|
Property, plant and equipment
impairment
|
774,443
|
-
|
|
Discount of trade and other
receivables and payables, net
|
55,668
|
(1,326)
|
|
Interest earned from
customers
|
(766,660)
|
(459,025)
|
|
Financial
income
|
(130,243)
|
(567,281)
|
|
Financial
expenses
|
4,355,152
|
2,186,755
|
|
Share of the profit of
associates
|
(54,136)
|
(143,414)
|
|
Stock-based
payments
|
696
|
8,131
|
|
Movements in
provisions and long-term employee benefit plan
expenses
|
27,148
|
50,004
|
|
Foreign exchange difference for
trade receivables
|
(2,426,164)
|
(3,868,070)
|
|
Loss on net monetary
position
|
(2,537,892)
|
(2,171,711)
|
|
|
|
|
|
Working capital
adjustments:
|
|
|
|
Decrease in trade and other
receivables
|
5,263,775
|
3,037,718
|
|
(Increase) Decrease in other
non-financial assets and inventories
|
(229,714)
|
50,615
|
|
(Decrease) Increase in trade and
other payables, other non-financial liabilities and liabilities
from employee benefits
|
(3,988,002)
|
917,728
|
|
|
4,091,414
|
3,736,615
|
|
Interest received from
customers
|
777,721
|
325,574
|
|
Income tax paid
|
(1,376,717)
|
(606,118)
|
|
Net cash flows
provided by operating activities
|
3,492,418
|
3,456,071
|
|
|
|
|
|
Investing
activities
|
|
|
|
Purchase of property, plant and
equipment
|
(4,503,712)
|
(3,437,010)
|
|
Sale of available-for-sale assets,
net
|
3,297,961
|
207,149
|
|
Net cash flows
used in investing activities
|
(1,205,751)
|
(3,229,861)
|
|
|
|
|
|
Financing
activities
|
|
|
|
Banks overdrafts received (paid),
net
|
(296,874)
|
14,920
|
|
Long term loans
paid
|
(258,607)
|
(236,263)
|
|
Interests and other loan costs
paid
|
(897,877)
|
(289,376)
|
|
Contributions from non-controlling
interests
|
-
|
64,787
|
|
Net cash flows
used in financing activities
|
(1,453,358)
|
(445,932)
|
|
|
|
|
|
|
|
|
|
Increase
(Decrease) in cash and cash equivalents
|
833,309
|
(219,722)
|
|
Exchange difference and other
financial results
|
(742,240)
|
171,300
|
|
Monetary results effect on cash and
cash equivalents
|
(102,065)
|
11,151
|
|
Cash and cash equivalents as of
January 1
|
1,610,383
|
381,325
|
|
Cash and cash
equivalents as of March 31
|
1,599,387
|
344,054
|
|
Tel
(+54 11) 4317 5000 ext. 2192
inversores@centralpuerto.com
www.centralpuerto.com
|
|
Av.
Thomas Edison 2701
C1104BAB
– City of Buenos Aires
Republic
of Argentina
|
19
Results for the Quarter
Ended on March 31, 2020
F. Information about the Conference Call
There
will be a conference call to discuss Central Puerto’s
First Quarter 2020 results
on May 28, 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 : 9728288
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
|
Tel
(+54 11) 4317 5000 ext. 2192
inversores@centralpuerto.com
www.centralpuerto.com
|
|
Av.
Thomas Edison 2701
C1104BAB
– City of Buenos Aires
Republic
of Argentina
|
20
Results for the Quarter
Ended on March 31, 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”), and its controlling company Inversora de Gas Cuyana
(“IGCU”) and Distribuidora de Gas del Centro
(“DGCE”), and its 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, and,
since February 2017, regulated by Resolution SEE
No. 19/17;
●
“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, is the
regulatory framework that allows generators to sell electric energy
from renewable sources directly to large users.
●
“p.p.”,
refers to percentage points;
|
Tel
(+54 11) 4317 5000 ext. 2192
inversores@centralpuerto.com
www.centralpuerto.com
|
|
Av.
Thomas Edison 2701
C1104BAB
– City of Buenos Aires
Republic
of Argentina
|
21
Results for the Quarter
Ended on March 31, 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.
|
Tel
(+54 11) 4317 5000 ext. 2192
inversores@centralpuerto.com
www.centralpuerto.com
|
|
Av.
Thomas Edison 2701
C1104BAB
– City of Buenos Aires
Republic
of Argentina
|
22
Results for the Quarter
Ended on March 31, 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;
●
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.
|
Tel
(+54 11) 4317 5000 ext. 2192
inversores@centralpuerto.com
www.centralpuerto.com
|
|
Av.
Thomas Edison 2701
C1104BAB
– City of Buenos Aires
Republic
of Argentina
|
23
Results for the Quarter
Ended on March 31, 2020
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.
|
|
|
|
|
|
|
|
|
|
|
Central Puerto S.A.
|
||||
|
|
|
|
|
|||
|
Date:
May 27, 2020
|
|
|
|
By:
|
|
/s/
FERNANDO BONNET
|
|
|
|
|
|
Name:
|
|
Fernando
Bonnet
|
|
|
|
|
|
Title:
|
|
Attorney-in-Fact
|
|
Tel
(+54 11) 4317 5000 ext. 2192
inversores@centralpuerto.com
www.centralpuerto.com
|
|
Av.
Thomas Edison 2701
C1104BAB
– City of Buenos Aires
Republic
of Argentina
|
24