Central Puerto S.A 6-K, filed Apr 7, 2021
Central Puerto S.A. (CEPU)
6-K
2021-04-07
For: 2020-12-31
View Original
Added on
April 11, 2026
About this 6-K
Central Puerto S.A filed this 6-K on April 7, 2021.
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 April 2021
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.
Documents Translation
TABLE
OF CONTENTS
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Item
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English translation
of the Consolidated financial statements for the year ended
December 31, 2020 and 2019, together with the independent
auditor’s report dated March 15, 2021, submitted to the
Argentine securities regulator (the Comisión Nacional de
Valores, or the CNV) on March 15, 2021.
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English translation
of the Annual Report 2020 (“Memoria”) of Central Puerto
S.A. dated March 15, 2021, submitted to the Argentine securities
regulator (the Comisión Nacional de Valores, or the CNV) on
March 12, 2021.
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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:
April 5, 2021
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By:
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/s/
Leonardo
Marinaro
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Name:
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Leonardo
Marinaro
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Title:
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Attorney-in-Fact
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Exhibit 99.1
Central Puerto S.A.
Consolidated financial statements for the year ended
December 31, 2020, together with the independent auditor´s
report
-1-
English translation of the consolidated financial statements
originally filed in Spanish with the Argentine Securities
Commission (“CNV”).
In case of discrepancy, the consolidated financial statements filed
with the CNV prevail over this translation
CENTRAL PUERTO S.A.
Registered office:
Av. Edison 2701 - Ciudad Autónoma de Buenos Aires -
República Argentina
FISCAL
YEAR N° 29 BEGINNING JANUARY 1, 2020 FINANCIAL
STATEMENTS
FOR
THE YEAR ENDED DECEMBER 31, 2020
CUIT
(Argentine taxpayer identification number): 33-65030549-9. Date of
registration with the Public Registry of Commerce:
-
Of the articles of
incorporation: March 13, 1992.
-
Of the last
amendment to by-laws: April 28, 2017.
Registration number
with the IGJ (Argentine regulatory agency of business
associations): 1.855, Book 110, Volume A of
Corporations.
Expiration date of
the articles of incorporation: March 13, 2091.
The
Company is not enrolled in the Statutory Optional System for the
Mandatory Acquisition of Public Offerings.
CAPITAL
STRUCTURE
(stated
in pesos)
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Class of shares
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Subscribed, paid-in, issued and registered
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1,514,022,256
common, outstanding book-entry shares, with face value of 1 each
and entitled to one vote per share.
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1,514,022,256
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-2-
English translation of the consolidated financial statements
originally filed in Spanish with the Argentine Securities
Commission (“CNV”).
In case of discrepancy, the consolidated financial statements filed
with the CNV prevail over this translation
CENTRAL PUERTO S.A.
CONSOLIDATED
STATEMENT OF INCOME
for
the year ended December 31, 2020
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Notes
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2020
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2019
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ARS 000
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ARS 000
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Revenues
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5
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38,108,160
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48,957,223
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Cost of
sales
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Exhibit
F
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(16,815,404)
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(25,807,727)
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Gross
income
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21,292,756
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23,149,496
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Administrative and
selling expenses
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Exhibit
H
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(2,972,603)
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(3,585,133)
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Other
operating income
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6.1
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14,098,495
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24,986,160
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Other
operating expenses
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6.2
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(457,084)
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(368,606)
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Impairment of
property, plant and equipment and intangible assets
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2.3.8
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(4,016,305)
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(5,996,233)
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Operating
income
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27,945,259
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38,185,684
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Gain
(loss) on net monetary position
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1,159,246
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(3,310,603)
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Finance
income
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6.3
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5,159,795
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4,902,024
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Finance
expenses
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6.4
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(22,297,137)
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(21,680,208)
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Share
of the profit of associates
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3 &
Exhibit C
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108,750
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1,515,649
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Income
before income tax
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12,075,913
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19,612,546
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Income
tax for the year
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7
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(5,117,975)
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(7,821,606)
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Net
income for the year
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6,957,938
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11,790,940
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Attributable
to:
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- Equity holders of
the parent
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6,891,921
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11,992,373
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- Non-controlling
interests
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66,017
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(201,433)
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6,957,938
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11,790,940
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Basic
and diluted earnings per share (ARS)
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8
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4.58
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7.97
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-3-
English translation of the consolidated financial statements
originally filed in Spanish with the Argentine Securities
Commission (“CNV”).
In case of discrepancy, the consolidated financial statements filed
with the CNV prevail over this translation
CENTRAL PUERTO S.A.
CONSOLIDATED
STATEMENT OF COMPREHENSIVE INCOME
for
the year ended December 31, 2020
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Notes
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2020
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2019
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ARS 000
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ARS 000
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Net
income for the year
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6,957,938
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11,790,940
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Other
comprehensive income for the year
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Other
comprehensive income (loss) not to be reclassified to income in
subsequent periods
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Remeasurement
of losses from long-term employee benefits
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11.3
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7,471
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(59,403)
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Income
tax related to remeasurement of losses from long-term employee
benefits
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7
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(1,967)
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15,742
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Other
comprehensive income (loss) not to be reclassified to income in
subsequent periods
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5,504
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(43,661)
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Other
comprehensive income for the year
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5,504
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(43,661)
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Total
comprehensive income for the year
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6,963,442
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11,747,279
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Attributable
to:
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- Equity holders of
the parent
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6,897,425
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11,948,712
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- Non-controlling
interests
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66,017
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(201,433)
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6,963,442
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11,747,279
|
-4-
English translation of the consolidated financial statements
originally filed in Spanish with the Argentine Securities
Commission (“CNV”).
In case of discrepancy, the consolidated financial statements filed
with the CNV prevail over this translation
CENTRAL PUERTO S.A.
CONSOLIDATED
STATEMENT OF FINANCIAL POSITION
as
at December 31, 2020
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2020
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2019
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Notes
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ARS 000
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ARS 000
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Assets
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Non-current assets
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Property,
plant and equipment
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Exhibit
A
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79,186,695
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77,187,266
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Intangible
assets
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12
& Exhibit B
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6,744,106
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9,623,488
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Investment
in associates
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3 &
Exhibit C
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4,664,005
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4,697,625
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Trade
and other receivables
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10.1
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29,400,051
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33,012,927
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Other
non-financial assets
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11.1
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484,116
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938,261
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Inventories
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9
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658,121
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196,275
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Deferred
tax asset
|
7
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98,380
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-
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121,235,474
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125,655,842
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Current assets
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Inventories
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9
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804,226
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895,252
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Other
non-financial assets
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11.1
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900,361
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1,369,911
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Trade
and other receivables
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10.1
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18,735,089
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21,293,677
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Other
financial assets
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Exhibit
D
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14,076,309
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10,481,099
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Cash
and cash equivalents
|
13
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278,698
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2,033,761
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34,794,683
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36,073,700
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Property,
plant and equipment available for sale
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18.5
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2,359,451
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-
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Total assets
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158,389,608
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161,729,542
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Equity and liabilities
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|
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Equity
|
|
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Capital
stock
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1,514,022
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1,514,022
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Adjustment
to capital stock
|
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25,619,864
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25,619,864
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Legal
reserve
|
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3,838,044
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3,238,426
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Voluntary
reserve
|
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48,479,823
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36,092,233
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Other
equity accounts
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(1,966,148)
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-
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Retained
earnings
|
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6,897,425
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12,987,208
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Equity attributable to holders of the parent
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84,383,030
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79,451,753
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Non-controlling
interests
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128,319
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1,076,487
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Total equity
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84,511,349
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80,528,240
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Non-current liabilities
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|
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Other
non-financial liabilities
|
11.2
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5,254,302
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|
5,928,471
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Loans
and borrowings
|
10.3
|
30,844,867
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|
41,777,839
|
|
Compensation
and employee benefits liabilities
|
11.3
|
314,612
|
|
312,142
|
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Provisions
|
Exhibit
E
|
45,403
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|
12,512
|
|
Deferred
income tax liabilities
|
7
|
8,999,900
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|
8,590,917
|
|
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45,459,084
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56,621,881
|
|
|
|
|
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|
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Current liabilities
|
|
|
|
|
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Trade
and other payables
|
10.2
|
2,545,492
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|
8,031,529
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Other
non-financial liabilities
|
11.2
|
2,251,198
|
|
2,361,153
|
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Loans
and borrowings
|
10.3
|
20,124,461
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|
10,926,497
|
|
Compensation
and employee benefits liabilities
|
11.3
|
1,018,919
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|
951,227
|
|
Income
tax payable
|
|
2,444,250
|
|
2,271,636
|
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Provisions
|
Exhibit
E
|
34,855
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|
37,379
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|
|
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28,419,175
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|
24,579,421
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|
Total liabilities
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73,878,259
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81,201,302
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Total equity and liabilities
|
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158,389,608
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161,729,542
|
-5-
English translation of the consolidated financial statements
originally filed in Spanish with the Argentine Securities
Commission (“CNV”).
In case of discrepancy, the consolidated financial statements filed
with the CNV prevail over this translation
CENTRAL PUERTO S.A.
CONSOLIDATED
STATEMENT OF CHANGES IN EQUITY
for
the year ended December 31, 2020
|
|
Attributable to
holders of the parent
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||||||
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Capital
stock
|
Retained
earnings
|
|
|
|
|
|
||
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Face value
(1)
|
Adjustment
to capital
stock
|
Legal
reserve
|
Voluntary
reserve
|
Other equity
accounts
|
Unappropriated
retained
earnings
|
Total
|
Non-
controlling
interests
|
Total
|
|
|
ARS
000
|
ARS
000
|
ARS
000
|
ARS
000
|
ARS
000
|
ARS
000
|
ARS
000
|
ARS
000
|
ARS
000
|
|
|
|
|
|
|
|
|
|
|
|
|
As of January 1,
2020
|
1,514,022
|
25,619,864
|
3,238,426
|
36,092,233
|
-
|
12,987,208
|
79,451,753
|
1,076,487
|
80,528,240
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income for the
year
|
-
|
-
|
-
|
-
|
-
|
6,891,921
|
6,891,921
|
66,017
|
6,957,938
|
|
Other comprehensive income for the
year
|
-
|
-
|
-
|
-
|
-
|
5,504
|
5,504
|
-
|
5,504
|
|
Total comprehensive income for the
year
|
-
|
-
|
-
|
-
|
-
|
6,897,425
|
6,897,425
|
66,017
|
6,963,442
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase in legal
reserve
|
-
|
-
|
599,618
|
-
|
-
|
(599,618)
|
-
|
-
|
-
|
|
Increase in voluntary
reserve
|
-
|
-
|
-
|
12,387,590
|
-
|
(12,387,590)
|
-
|
-
|
-
|
|
Dividends in cash distributed by a
subsidiary (2)
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(63,958)
|
(63,958)
|
|
Transaction with non-controlling
interest (Note 16)
|
-
|
-
|
-
|
-
|
(1,966,148)
|
-
|
(1,966,148)
|
(951,900)
|
(2,918,048)
|
|
Share-based
payments
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
1,673
|
1,673
|
|
As of December
31, 2020
|
1,514,022
|
25,619,864
|
3,838,044
|
48,479,823
|
(1,966,148)
|
6,897,425
|
84,383,030
|
128,319
|
84,511,349
|
|
|
|
|
|
|
|
|
|
|
|
|
As of January 1,
2019
|
1,514,022
|
25,619,864
|
802,935
|
9,228,000
|
-
|
30,817,963
|
67,982,784
|
979,444
|
68,962,228
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of IFRIC 23
adoption
|
-
|
-
|
-
|
-
|
-
|
1,029,939
|
1,029,939
|
-
|
1,029,939
|
|
As of January 1,
2019 (modified)
|
1,514,022
|
25,619,864
|
802,935
|
9,228,000
|
-
|
31,847,902
|
69,012,723
|
979,444
|
69,992,167
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income for the
year
|
-
|
-
|
-
|
-
|
-
|
11,992,373
|
11,992,373
|
(201,433)
|
11,790,940
|
|
Other comprehensive income for the
year
|
-
|
-
|
-
|
-
|
-
|
(43,661)
|
(43,661)
|
-
|
(43,661)
|
|
Total comprehensive income for the
year
|
-
|
-
|
-
|
-
|
-
|
11,948,712
|
11,948,712
|
(201,433)
|
11,747,279
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase in legal
reserve
|
-
|
-
|
2,435,491
|
-
|
-
|
(2,435,491)
|
-
|
-
|
-
|
|
Increase in voluntary
reserve
|
-
|
-
|
-
|
28,382,471
|
-
|
(28,382,471)
|
-
|
-
|
-
|
|
Dividends in
cash
|
-
|
-
|
-
|
(1,518,238)
|
-
|
8,556
|
(1,509,682)
|
-
|
(1,509,682)
|
|
Contributions from non-controlling
interests
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
263,994
|
263,994
|
|
Dividends in cash distributed by a
subsidiary (3)
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(31,624)
|
(31,624)
|
|
Share-based
payments
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
66,106
|
66,106
|
|
As of December
31, 2019
|
1,514,022
|
25,619,864
|
3,238,426
|
36,092,233
|
-
|
12,987,208
|
79,451,753
|
1,076,487
|
80,528,240
|
(1)
A subsidiary holds
8,851,848 common shares.
(2)
Distribution of
dividends in cash approved by the Shareholders’ Meeting of
the subsidiary Central Vuelta de Obligado S.A. held on April 28,
2020.
(3)
Distribution of
dividends in cash approved by the Shareholders’ Meeting of
the subsidiary Central Vuelta de Obligado S.A. held on April 23,
2019.
-6-
English translation of the consolidated financial statements
originally filed in Spanish with the Argentine Securities
Commission (“CNV”).
In case of discrepancy, the consolidated financial statements filed
with the CNV prevail over this translation
CENTRAL PUERTO S.A.
CONSOLIDATED
STATEMENT OF CASH FLOWS
for
the year ended December 31, 2020
|
|
2020
|
|
2019
|
|
|
ARS 000
|
|
ARS 000
|
|
|
|
|
|
|
Operating
activities
|
|
|
|
|
Income
for the year before income tax
|
12,075,913
|
|
19,612,546
|
|
|
|
|
|
|
Adjustments
to reconcile income for the year before income tax to net cash
flows:
|
|
|
|
|
Depreciation of
property, plant and equipment
|
3,620,674
|
|
2,681,584
|
|
Amortization of
intangible assets
|
2,334,299
|
|
1,934,797
|
|
Impairment of
property, plant and equipment and intangible assets
|
4,016,305
|
|
5,996,233
|
|
Discount of
accounts receivables and payables, net
|
30,194
|
|
304,798
|
|
Interest earned
from customers
|
(3,107,561)
|
|
(8,760,658)
|
|
Trade
and tax interests lost
|
373,124
|
|
-
|
|
Finance
income
|
(5,159,795)
|
|
(4,902,024)
|
|
Finance
expenses
|
22,297,137
|
|
21,680,208
|
|
Share
of the profit of associates
|
(108,750)
|
|
(1,515,649)
|
|
Material and spare
parts impairment
|
42,935
|
|
42,977
|
|
Share-based
payments
|
1,673
|
|
66,106
|
|
Movements in
provisions and long-term employee benefit plan expense
|
135,257
|
|
110,407
|
|
Foreign
exchange difference for trade receivables
|
(10,952,248)
|
|
(16,217,459)
|
|
Loss on
net monetary position
|
(12,354,183)
|
|
(16,235,780)
|
|
|
|
|
|
|
Working
capital adjustments:
|
|
|
|
|
Decrease in trade
and other receivables
|
14,505,539
|
|
17,383,420
|
|
Decrease (Increase)
in other non-financial assets and inventories
|
341,216
|
|
(1,624,563)
|
|
(Decrease) Increase
in trade and other payables, other non-financial liabilities and
liabilities from employee benefits
|
(8,171,729)
|
|
2,338,705
|
|
|
19,920,000
|
|
22,895,648
|
|
Trade
and tax interests paid
|
(373,124)
|
|
-
|
|
Interest received
from customers
|
3,111,680
|
|
6,578,193
|
|
Income
tax paid
|
(3,364,939)
|
|
(13,172,605)
|
|
Net
cash flows provided by operating activities
|
19,293,617
|
|
16,301,236
|
|
|
|
|
|
|
Investing
activities
|
|
|
|
|
Purchase of
property, plant and equipment
|
(11,970,431)
|
|
(23,830,786)
|
|
Acquisition of
thermal Station Brigadier López
|
-
|
|
(11,526,280)
|
|
Dividends
received
|
140,984
|
|
1,003,449
|
|
(Acquisition) of
available-for-sale financial assets, net
|
(5,458,711)
|
|
(3,635,472)
|
|
Net
cash flows used in investing activities
|
(17,288,158)
|
|
(37,989,089)
|
|
|
|
|
|
|
Financing
activities
|
|
|
|
|
Bank
and investment accounts overdrafts received (paid),
net
|
(703,095)
|
|
1,998,624
|
|
Loans
received
|
4,132,003
|
|
28,216,736
|
|
Loans
paid
|
(3,229,307)
|
|
(1,576,414)
|
|
Direct
financing and loans refinancing costs
|
(323,478)
|
|
(1,324,244)
|
|
Interest and other
financial costs paid
|
(3,495,527)
|
|
(2,713,387)
|
|
Contributions from
non-controlling interests
|
-
|
|
263,994
|
|
Dividends
paid
|
(63,958)
|
|
(1,541,306)
|
|
Net
cash flows (used in) provided by financing activities
|
(3,683,362)
|
|
23,324,003
|
|
|
|
|
|
|
(Decrease)
Increase in cash and cash equivalents
|
(1,677,903)
|
|
1,636,150
|
|
Exchange difference
and other financial results
|
276,696
|
|
864,440
|
|
RECPAM
generated by cash and cash equivalents
|
(353,856)
|
|
(948,406)
|
|
Cash
and cash equivalents as of January 1
|
2,033,761
|
|
481,577
|
|
Cash
and cash equivalents as of December 31
|
278,698
|
|
2,033,761
|
-7-
English translation of the consolidated financial statements
originally filed in Spanish with the Argentine Securities
Commission (“CNV”).
In case of discrepancy, the consolidated financial statements filed
with the CNV prevail over this translation
CENTRAL PUERTO S.A.
NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS
1.
Corporate
information and main business
Central
Puerto S.A. (hereinafter the “Company”,
”we”, “us” or “CEPU”) and the
companies that make up the business group (hereinafter the
“Group”) form an integrated group of companies
pertaining to the energy sector. The Group is mainly engaged in
electric power generation.
CEPU
was incorporated pursuant to Executive Order No. 122/92. We were
formed in connection with privatization process involving Servicios
Eléctricos del Gran Buenos Aires S.A. (“SEGBA”) in
which SEGBA’s electricity generation, transportation,
distribution and sales activities were privatized.
On
April 1, 1992, Central Puerto S.A., the consortium-awardee, took
possession over SEGBA’s Nuevo Puerto and Puerto Nuevo plants,
and we began operations.
Our
shares are listed on the BCBA (“Buenos Aires Stock
Exchange”), and, since February 2, 2018, they are listed on
the NYSE (“New York Stock Exchange”), both under the
symbol “CEPU”.
In
order to carry out its electric energy generation activity the
Group owns the following assets:
-
Our Puerto complex
is composed of two facilities, Central Nuevo Puerto (“Nuevo
Puerto”) and Central Puerto Nuevo (“Puerto
Nuevo”), located in the port of the City of Buenos Aires. Our
Puerto complex’s facilities include steam turbines plants and
a Combined Cycle plant and has a current installed capacity of
1,714 MW.
-
Our Luján de
Cuyo plants are located in Luján de Cuyo, Province of Mendoza
and have an installed capacity of 571 MW and a steam generating
capacity of 125 tons per hour.
-
The Group also owns
the concession right of the Piedra del Águila hydroelectric
power plant located at the edge of Limay river in Neuquén
province. Piedra del Águila has four 360 MW generating
units.
-
The Group is
engaged in the management and operations of the thermal plants
José de San Martín and Manuel Belgrano through its equity
investees Termoeléctrica José de San Martín S.A.
(“TJSM”) and Termoeléctrica General Belgrano S.A.
(“TMB”). Those entities operate the two thermal
generation plants with an installed capacity of 865 MW and 873 MW,
respectively. Additionally, through its subsidiary Central Vuelta
de Obligado S.A. (“CVO”) the Group is engaged in the
operation of the thermal plant Central Vuelta de Obligado, with an
installed capacity of 816 MW.
-
The thermal station
Brigadier López located in Sauce Viejo, Province of Santa Fe,
with an installed power of 280.5 MW (open-cycle
operation).
-
The thermal
cogeneration plant Terminal 6 - San Lorenzo (currently under
construction), located in Puerto General San Martín, Santa Fe
Province, was commercially authorized on November 21, 2020, with
only its gas turbine with power of 269.5 MW (open-cycle). Once the
works are finished and the plant operates with combined cycle, it
will have an installed power of 330 MW and 340 tn/h of steam
production.
The
Group is also engaged in the natural gas distribution public sector
service in the Cuyo and Centro regions in Argentina, through its
equity investees belonging to ECOGAS Group.
On July
19, 2018, the National Gas Regulation Entity (Enargas) filed the
Company with the Registry of Traders and Trade Agreements of
Enargas.
-8-
English translation of the consolidated financial statements
originally filed in Spanish with the Argentine Securities
Commission (“CNV”).
In case of discrepancy, the consolidated financial statements filed
with the CNV prevail over this translation
CENTRAL PUERTO S.A.
Moreover, through
CP Renovables S.A. (“CPR”) and its subsidiaries,
Vientos La Genoveva S.A.U. and Vientos La Genoveva II S.A.U. the
Group takes part on the development and performance of energy
projects based on the use of renewable energy sources. In this
regard, as of the issuance date of these financial statements, the
Group has a total installed capacity of 373.8 MW of
commercially-authorized power from sources of renewable energy,
which is distributed as follows: (i) wind farm La Castellana 100.8
MW; (ii) wind farm La Castellana II 15.2 MW; (iii) wind farm La
Genoveva 88.2 MW; (iv) wind farm La Genoveva II 41.8 MW; (v) wind
farm Achiras 48 MW; (iv) wind farm Los Olivos 22.8 MW and (vii)
wind farm Manque 57 MW.
The
issuance of Group’s consolidated financial statements of the
year ended December 31, 2020 was approved by the Company’s
Board of Directors on March 15, 2021.
1.1.
Overview
of Argentine Electricity Market
Transactions among
different participants in the electricity industry take place
through the wholesale electricity market (“WEM”) which
is a market in which generators, distributors and certain large
users of electricity buy and sell electricity at prices determined
by supply and demand (“Term market”) and also, where
prices are established on an hourly basis based on the economic
production cost, represented by the short term marginal cost
measured at the system’s load center (“Spot
market”). CAMMESA (Compañía Administradora del
Mercado Mayorista Eléctrico Sociedad Anónima) is a
quasi-government organization that was established to administer
the WEM and functions as a clearing house for the different market
participants operating in the WEM. Its main functions include the
operation of the WEM and dispatch of generation and price
calculation in the Spot market, the real-time operation of the
electricity system and the administration of the commercial
transactions in the electricity market.
Following
Argentina’s economic crisis in 2001 and 2002 the costs of
generators were increasing as a result of the devaluation of the
Argentine peso and increasing fuel prices. As a result of the
freeze in end user tariffs combined with the higher generation
costs, CAMMESA began experiencing deficits as it was not able to
collect from the end users (via distributors) the full price of
electricity it owed to the generators. Given this structural
deficit, CAMMESA passed a series of regulations to keep the
electrical system operating despite the structural
deficit.
1.2.
Amendments
to WEM regulations
a)
Resolution
SE No. 406/03 and other regulations related to WEM
generators’ receivables
Resolution 406/03
issued in September 2003 enforced priority payments of
generator’s balances. Under the priority payment plan,
generators only collected the variable generation costs declared
and the payments for power capacity and the remaining payments on
these plants were delayed as there were not sufficient funds as a
result of the structural deficit. Resolution 406/03 established
that the resulting monthly obligations to generators for the unpaid
balance were to be considered payments without a fixed due date, or
“LVFVD receivables” using the Spanish acronym. Although
these obligations did not have a specified due date, the Resolution
provided that they would earn interest at an equivalent rate to the
one received by CAMMESA on its own cash investments, hereafter
“the CAMMESA rate”.
As a
result of this regulation, a portion of the invoices issued by
Company’s plants were not paid in full beginning in
2004.
Between
2004 and 2007, the Argentine government issued a series of
resolutions aimed at increasing thermal generation capacity while
at the same time providing a mechanism for generators to collect
their LVFVD receivables. These resolutions created funds called the
“FONINVEMEM” which were administered by trusts
(“the FONINVEMEM trust”) and made investments in two
thermal generation plants within Argentina. All WEM
-9-
English translation of the consolidated financial statements
originally filed in Spanish with the Argentine Securities
Commission (“CNV”).
In case of discrepancy, the consolidated financial statements filed
with the CNV prevail over this translation
CENTRAL PUERTO S.A.
creditor agents
with LVFVD (including the Company) were invited to state formally
their decision to participate in forming the FONINVEMEM. The
Company, as most LVFVD generators, stated its decision to
participate in the creation of the FONINVEMEM with the
abovementioned receivables.
Within
this framework, generators created the companies
Termoeléctrica José de San Martín S.A.
(“TSM”) and Termoeléctrica Manuel Belgrano S.A.
(“TMB”), which are engaged in managing the purchase of
equipment, and building, operating and maintaining each new power
plant.
Under
these Resolutions, the FONINVEMEM trusts are the owner of the
Central Termoeléctrica San Martin and Central
Termoeléctrica Belgrano plants during the first ten years of
operations. Trusts are aimed at administrating, each of them, 50%
of the resources accrued under FONINVEMEM and other funds for the
purpose of financing the power stations. Under these agreements,
CAMMESA acts as a Trustor, Banco de Inversión y Comercio
Exterior (“BICE”) as Trustee, the Secretariat of Energy
as regulatory authority and TSM and TMB as Trust Beneficiaries and
the Company, with the remaining shareholders of TSM and TMB, as
guarantors of the obligations of the latter.
The
trust agreements had to remain in force until the termination date
of the supply agreement that the Trustee - in representation of the
Trust - entered into with CAMMESA - as the purchasing party - that
had to remain valid for 10 years as from the date of the commercial
authorization of the power stations. Upon the termination of that
term, the trust assets must be transferred to TSM and TMB provided
that, prior to such transference, TSM and TMB and their
shareholders perform all the corporate acts necessary to allow
private contributors and/or the Argentine Government to receive
their correspondent shares in the capital of the power stations
pursuant to the terms of the agreement. Failure to comply with this
condition, holders of interest certificates (Argentine Government)
and the generators who are the current shareholders of TSM and TMB
shall be deemed as trust beneficiaries.
The
FONINVEMEM agreements established that the receivables mentioned
above will be paid by CAMMESA in 120 equal, consecutive monthly
installments commencing on the commercial operation date of the
plants. Also, the agreements established that the LVFVD receivables
would be collected converted to US dollar and began earning
interest at LIBOR plus a spread of 1% and 2%.
Once
Manuel Belgrano and San Martin plants were commissioned (on January
7, 2010 and February 2, 2010, respectively), CAMMESA began paying
the LVFVD receivables. On May 2010, CAMMESA informed the Company of
the payment plan, including the amount of accrued interest at the
CAMMESA rate which was added to the principal to be repaid in
monthly installments over a ten-year period. Upon receipt of the
payment schedule, the Company recognized accrued interest (related
to the CAMMESA rate). The Company also began recognizing LIBOR
interest income based on the contractual rate provided in the
Resolution and the conversion of the receivables into US dollar.
Since achieving commercial operations in 2010, CAMMESA have made
all scheduled contractual principal and interest payments in
accordance with the installment plan.
On
January 7, 2020, the supply agreement with TMB was terminated and
on February 2, 2020, the supply agreement with TSM was terminated,
therefore payments of the final installment of the 120 established
in the agreement for each power stations ceased. As a result, the
reimbursement for the LVFVD receivables is deemed completed. In
Note 3.1, the events that occurred after the termination of the
supply agreements with TMB and TSM are included.
Additionally, in
2010 the Company approved a new agreement with the former
Secretariat of Energy (Central Vuelta Obligado, the “CVO
agreement”). This agreement established, among other
agreements, a framework to determine a mechanism to settle unpaid
trade receivables as per Resolution 406/03 accrued over the 2008 -
2011 period by the generators (“CVO receivables”) and
for that purpose, enabling the construction of a thermal combined
cycle plant named Central Vuelta de Obligado. The CVO agreement
established that the CVO receivables will be paid by CAMMESA in 120
equal and consecutive monthly installments. For the determination
of the novation of CVO credits, the following mechanism was
applied: the cumulative LVFVD (sale settlements with due date to be
defined) were converted to USD at the exchange rate established in
the
-10-
English translation of the consolidated financial statements
originally filed in Spanish with the Argentine Securities
Commission (“CNV”).
In case of discrepancy, the consolidated financial statements filed
with the CNV prevail over this translation
CENTRAL PUERTO S.A.
agreement (ARS 3.97
per USD for the cumulative LVFVD until the execution date of the
CVO Agreement and the closing exchange rate corresponding to each
month for the LVFVD subsequently accumulated), the LIBOR rate was
applied plus a 5% margin.
As from
March 20, 2018, CAMMESA granted the commercial operations as a
combined cycle of Central Vuelta de Obligado thermal power plant
(the “Commercial Approval”). The financial impact of
the Commercial Approval is described in Note 10.1.
Under
the agreement mentioned above, generators created the company
Central Vuelta de Obligado S.A., which is in charge of managing the
purchase of equipment, construction, operation and maintenance of
the Central Vuelta de Obligado thermal power plant.
b)
Resolution
No. 95/2013, Resolution No. 529/2014, Resolution No. 482/2015 and
Resolution No. 22/2016
On
March 26, 2013, the former Secretariat of Energy released
Resolution No. 95/2013 (“Resolution 95”), which affects
the remuneration of generators whose sales prices had been frozen
since 2003. This new regulation, which modified the current
regulatory framework for the electricity industry, is applicable to
generators with certain exceptions. It defined a new compensation
system based on compensating for fixed costs, non-fuel variable
costs and an additional remuneration. Resolution 95 converted the
Argentine electric market towards an “average cost”
compensation scheme. Resolution 95 applied to all Company’s
plants, excluding La Plata plant, which also sells energy in excess
of YPF’s demand on the Spot market pursuant to the framework
in place prior to Resolution 95.
In
addition, Resolution 95 addressed LVFVD receivables not already
included in any one of the FONINVEMEM trusts.
Thermal
units must achieve an availability target which varies by
technology in order to receive full fixed cost revenues. The
availability of all Company’s plants exceeds this market
average. As a result of Resolution 95, revenues to Company’s
thermal units increased, but the impact on hydroelectric plant
Piedra del Águila is dependent on hydrology. The new
Resolution also established that all fuels, except coal, are to be
provided by CAMMESA.
The
resolution also established that part of the additional
remuneration shall be not collected in cash rather it is
implemented through LVFDV and will be directed to a “New
Infrastructure Projects in the Energy Sector” which need to
be approved by the former Secretariat of the Energy.
Finally, Resolution
95 suspended the inclusion of new contracts in the Term market as
well as their extension or renewal. Notwithstanding the foregoing,
contracts in force as at the effective date of Resolution 95 will
continue being managed by CAMMESA upon their termination. As from
such termination, large users should acquire their supplies
directly from CAMMESA. Also, Resolution 95 temporarily suspended
the acquisition of fuel by the generation agents. All fuel
purchases for the generation of electric power are centralized
through CAMMESA.
On May
23, 2014, the Official Gazzette published Resolution No. 529/2014
issued by the former Secretariat of Energy (“Resolution
529”) which retroactively updated the prices of Resolution 95
to February 1, 2014, changed target availability and added a
remuneration for non-recurrence maintenance. This remuneration is
implemented through LVFDV and is aimed to cover the expenses that
the generator incurs when performing major maintenances in its
units.
On July
17, 2015, the Secretariat of Electric Energy set forth Resolution
No. 482/2015 (“Resolution 482”) which retroactively
updated the prices of Resolution 529 to February 1, 2015, and
created a new trust called “Recursos para las inversiones del
FONINVEMEM 2015-2018” in order to invest in new generation
plants. Company’s plants would receive compensation under
this program.
-11-
English translation of the consolidated financial statements
originally filed in Spanish with the Argentine Securities
Commission (“CNV”).
In case of discrepancy, the consolidated financial statements filed
with the CNV prevail over this translation
CENTRAL PUERTO S.A.
Finally, on March
30, 2016, through Resolution No. 22/2016 (“Resolution
22”), the values set by Resolution 482 were updated to become
effective as from the transactions of February 2016.
c)
Resolution
No. 19/2017
On
January 27, 2017, the Secretariat of Electric Energy
(“SEE”) issued Resolution SEE No. 19/17 (published in
the Official Gazette on February 2, 2017) (Resolution 19), which
replaced Resolution 95, as amended. This resolution changes
electric energy generators remuneration methodology for
transactions operated since February 1, 2017.
Resolution 19
substantially amended the tariff scheme applicable, which was
previously governed by Resolution 22. Among its most significant
provisions, such resolution established: (a) that generation
companies would receive a remuneration of electric power generated
and available capacity, (b) gradual increases in tariffs effective
as of February, May and November 2017, (c) that the new tariffs
would be denominated in U.S. dollars, instead of Argentine pesos,
thus protecting generation companies from potential fluctuations in
the value of the Argentine peso and (d) 100% of the energy sales
are collected in cash by generators, eliminating the creation of
additional LVFVD receivables.
Pursuant to this
resolution, the Secretariat of Electric Energy established that
electricity generators, co- generators and self-generators acting
as agents in the WEM and which operate conventional thermal power
plants, may make guaranteed availability offers (ofertas de
disponibilidad garantizada) in the WEM. Pursuant to these offers,
these generation companies may commit specific capacity and power
output of the generation, provided that such capacity and energy
had not been committed under other power purchase agreements. The
offers must be accepted by CAMMESA (acting on behalf of the
electricity demanding agents of the WEM), who will be the purchaser
of the power under the guaranteed availability agreements
(compromisos de disponibilidad garantizada). The term of the
guaranteed availability agreements is 3 years, and their general
terms and conditions are established in Resolution 19.
Resolution 19 also
establishes that WEM agents that operate hydroelectric power plants
shall be remunerated for the energy and capacity of their
generation units in accordance with the values set forth in such
resolution.
d)
SGE
(Secretaría de Gobierno de Energía) Resolution No.
70/2018 and Ministry of Productive Development Resolution No.
12/2019
On
November 6, 2018, Resolution No. 70/2018 of the SGE was published,
which resolution replaces Article 8 of Resolution issued by former
SE no. 95/2013. The new article allows MEM Generators,
Autogenerators and Cogenerators to obtain their own fuel. This does
not alter the commitments assumed by Generation Agents within the
context of MEM supply agreements with CAMMESA. It is established
that generation costs with their own fuel will be valued according
to the recognition mechanism of Average Variable Costs
(“CVP”) recognized by CAMMESA. The Resolution also
establishes that regarding those Generators not purchasing their
own fuel, CAMMESA will continue the commercial management and the
fuel supply.
Finally, under
Resolution No. 12/2019 by the Ministry of Productive Development
(published in the Official Gazette on December 30, 2019) fuel
purchase for the generation of electric power is once again
centralized through CAMMESA, therefore repealing the effect of
Resolution No. 70/2018 of the former Secretariat of Energy, and
Section 8 of Resolution No. 95/2013 of the former Secretariat of
Energy and Section 4 of Resolution No. 529/2014 of the former
Secretariat of Energy are back in force.
e)
Resolution
of the Secretariat of Renewable Resources and Electricity Market
no. 1/2019
On
March 1, 2019 Resolution No. 1/2019 (“Resolution 1”) of
the Secretariat of Renewable Resources and Electricity Market was
published in the Official Gazette by virtue of which Resolution 19
was abolished. It establishes the new remuneration values of
energy, power and associated services for the affected
generators,
-12-
English translation of the consolidated financial statements
originally filed in Spanish with the Argentine Securities
Commission (“CNV”).
In case of discrepancy, the consolidated financial statements filed
with the CNV prevail over this translation
CENTRAL PUERTO S.A.
as well
as their application methodology. Its validity commences on the
date of its publication in the Official Gazette.
According to
Resolution 1, the approved remuneration system will be of
transitional application and until the following are defined and
gradually implemented: regulatory mechanisms aimed at reaching an
autonomous, competitive and sustainable operation that allows for
freedom of contract between supply and demand; and a technical,
economical and operative functioning for the integration of
different generation technologies so as to guarantee a reliable and
cost effective system.
The
following are the main changes introduced by Resolution 1 in
connection with Resolution 19:
Energy
Sale:
-
The price of energy
generated by thermal power stations is reduced. Therefore, the
price for energy generated with natural gas is of 4 USD/MWh and 7
USD/MWh for energy generated with liquid fuel.
-
The price of energy
operated by thermal power stations is reduced. Therefore, the price
for energy operated with any fuel is of 1.4 USD/MW.
-
The price for
energy generated from non-conventional energy sources (renewable
energies) is fixed at 28 USD/MWh.
Power
Sale:
-
DIGO price
(established by Resolution 19) goes from 7,000 USD/MW-month during
the twelve months of the year to 7,000 USD/MW-month the six months
of higher seasonal demand for electrical energy (December, January,
February, June, July and August) and to 5,500 USD/MW-month the
remaining months of the year (March, April, May, September, October
and November).
-
Some minimum values
of offered availability are reduced. Its compliance is subject to
the foregoing prices.
-
A weighting factor
is fixed for the foregoing prices, between 1 and 0.7, depending on
the use factor of the twelve months previous to each month of the
transaction.
The
energy purchase agreements entered into by the Group with CAMMESA
are not affected by the provisions of Resolution 1.
f)
Resolution
No. 31/2020 of the Secretariat of Energy
On
February 27, 2020, the Secretariat of Energy published in the
Official Gazette Resolution No. 31 (“Resolution 31”)
which sets forth the criteria to calculate the economic
transactions of energy and power that the generating parties
commercialize in the spot market, which is in force as from
February 1, 2020.
This
new regulation, contrary to Resolution 1, establishes all prices
for the remuneration of energy and power in Argentine pesos, and it
sets forth that the prices shall be adjusted on a monthly basis
with a formula based on the evolution of Consumer Price Index (IPC)
and the Domestic Wholesale Price Index (IPIM). New power prices are
generally reduced in relation to the current prices as at January
2020, and the energy prices remain equivalent, expressed in
Argentine pesos instead of US dollars. Finally, this regulation
introduces a new remuneration component which applies to the energy
generated during the first 50 hours of maximum thermal requirement
of the month (MTR, which is determined by the sum of the hours of
all the thermal generation of the system), it determines different
remuneration prices based on the season of the year and the energy
delivered during the first and second 25 hours of MTR.
-13-
English translation of the consolidated financial statements
originally filed in Spanish with the Argentine Securities
Commission (“CNV”).
In case of discrepancy, the consolidated financial statements filed
with the CNV prevail over this translation
CENTRAL PUERTO S.A.
Prices
established by Resolution 31 are listed below:
Energy
sale:
-
The price of the
energy generated by thermal power stations with natural gas is 240
$/MWh and with liquid fuel is 420 $/MWh. For hydraulic plants, the
price is 210 $/MWh.
-
The price of energy
operated by thermal power stations is 84 $/MWh for the energy
generate from any type of fuel, and the same applies for hydraulic
plants.
-
The price of energy
generated from non-conventional energy sources (renewable energies)
is 1680 $/MWh.
-
The remuneration
price in MTR hours for thermal power stations is 37500 $/MWh -
month, and in hydraulic power stations with power lower than 300 MW
is 32500 $/MWh - month and in hydraulic power stations with power
higher than 300 MW, it is 27500 $/MWh - month. The prices
aforementioned shall apply to the energy generated during the first
25 hours of MTR (HMRT-1) and to the next 25 hours of MTR (HMRT-2)
multiplied by the FRPHMRT factor, as indicated in the following
table:
-14-
English translation of the consolidated financial statements
originally filed in Spanish with the Argentine Securities
Commission (“CNV”).
In case of discrepancy, the consolidated financial statements filed
with the CNV prevail over this translation
CENTRAL PUERTO S.A.
|
Hours of maximum thermal requirement
|
|
FRPHMRT
|
||||||
|
|
Summer
|
|
Autumn
|
|
Winter
|
|
Spring
|
|
|
|
|
|
|
|
|
|
|
|
|
HMRT-1
|
|
1.2
|
|
0.2
|
|
1.2
|
|
0.2
|
|
HMRT-2
|
|
0.6
|
|
0.0
|
|
0.6
|
|
0.0
|
Power
sale:
-
DIGO prices for
thermal generators will be 360000 $/MW - month for the six months
of highest seasonal demand of electric energy (December, January,
February, June, July and August) and 270000 $/MWh - month for the
remaining six months of the year (March, April, May, September,
October and November).
-
The Power Base
Price for hydraulic generators is:
|
Hidro scale
|
|
PowerBasePrice [$/MW-month]
|
|
|
|
|
|
Power
> 300 MW
|
|
99,000
|
|
Power
> 120 MW and <= 300 MW
|
|
132,000
|
|
Power
> 50 MW and <= 120 MW
|
|
181,500
|
Even
though Resolution 31 implies a reduction in the energy sale income
in the spot market, there are no doubts regarding the ability of
the Company to continue as a going concern. Supply agreements
entered into by the Group with CAMMESA up to date and the
collection of CVO credits in US dollars shall remain unaffected by
the dispositions of Resolution 31.
On
April 8, 2020, the Company learned that the Secretariat of Energy
instructed CAMMESA to postpone until further notice the application
of the price update mechanism described in the second paragraph of
this note. Accordingly, CAMMESA did not apply the price update
mechanism to the energy and power sold since March 2020. The
Company is evaluating the effects that the non-application of such
mechanism would have, as well as the steps to be followed in this
regard.
g)
Secretariat
of Energy Resolution No. 354/2020
This
resolution established, among other things, that as from the
effectiveness of Plan “GasAr” (Plan Gas 4), Generators
of WEM may adhere to centralized dispatch, assigning CAMMESA such
contracts entered into
-15-
English translation of the consolidated financial statements
originally filed in Spanish with the Argentine Securities
Commission (“CNV”).
In case of discrepancy, the consolidated financial statements filed
with the CNV prevail over this translation
CENTRAL PUERTO S.A.
with
producers or transporters of natural gas, so that such contracts
are used by the Dispatch Entity (OED for its acronym in Spanish),
based on dispatch criteria.
In
addition, this resolution established that generation agents who,
pursuant to Resolution No. 287/2017, have the obligation of
self-procuring fuel are able to deem such obligations null and
therefore, have their associated costs recognized, and they must
keep maintenance of the transport capacity for its management in
centralized dispatch, as long as CAMMESA determines the convenience
of having such.
2.
Basis
of preparation of the consolidated financial
statements
2.1.
Applied
Professional Accounting Standards
The
Group prepares its consolidated financial statements in accordance
with the regulations in force of the Argentine Securities
Commission (Comisión Nacional
de Valores - “CNV”, for its Spanish initials),
which regulations provide that the entities issuing
shares/corporate bonds, with certain exceptions, must prepare their
financial statements by applying Technical Resolution No. 26 (as
amended) of the Argentine Federation of Professional Councils in
Economic Sciences (Federación
Argentina de Consejos Profesionales de Ciencias
Económicas - “FACPCE”, for its Spanish
initials), which sets forth the adoption of International Financial
Reporting Standards (“IFRS”) as issued by the
International Accounting Standards Board (“IASB”);while
other entities may use the IFRS for SMEs instead of the Argentine
Professional Accounting Standards (“NCPA”, for its
Spanish initials).
2.2.
Basis
of preparation
The
consolidated financial statements of the Group for the year ended
December 31, 2020 have been prepared in accordance with IFRS as
issued by the IASB.
In
preparing these consolidated financial statements, the Group and
its subsidiaries applied the significant accounting policies,
estimates and assumptions described in notes 2.3 and
2.4.
The
Group’s consolidated financial statements are presented in
Argentine pesos, which is the Group’s functional currency,
and all values have been rounded to the nearest thousand (ARS 000),
except when otherwise indicated.
2.2.1.
Basis
of consolidation
The
consolidated financial statements as of December 31, 2020, include
the financial statements of the Group formed by the parent company
and its subsidiaries: Central Vuelta de Obligado S.A., Vientos La
Genoveva S.A.U., Vientos La Genoveva II S.A.U., Proener S.A.U. and
CP Renovables S.A. and its subsidiaries.
Control
is achieved when the investor is exposed or entitled to variable
returns arising from its ownership interest in the investee, and
has the ability to affect such returns through its power over the
investee. Specifically, the investor controls an investee, if and
only if it has:
-
Power over the
investee (i.e. the investor has rights that entitle it to direct
the relevant activities of the investee).
-
Exposure or right
to variable returns arising from its ownership interest in the
investee.
-
Ability to exercise
its power over the investee to significantly affect its
returns.
-16-
English translation of the consolidated financial statements
originally filed in Spanish with the Argentine Securities
Commission (“CNV”).
In case of discrepancy, the consolidated financial statements filed
with the CNV prevail over this translation
CENTRAL PUERTO S.A.
Consolidation of a
subsidiary begins when the parent company obtains control over the
subsidiary and ends when the parent company loses control over the
subsidiary. The assets, liabilities, income and expenses of a
subsidiary acquired or sold during the fiscal year are included in
the consolidated financial statements from the date on which the
parent company acquired control of the subsidiary to the date on
which the parent company ceased to control the
subsidiary.
The
result for the fiscal year and each component of the other
comprehensive income (loss) are assigned to the owners of the
parent company and non-controlling interests, even if the results
of the non-controlling interests give rise to a debit balance. If
necessary, appropriate adjustments are made to the
subsidiaries’ financial statements so that their accounting
policies are in accordance with the Group’s accounting
policies. All assets and liabilities, equity, income, expenses and
cash flows within the Group that relate to transactions among the
members of the Group are completely eliminated in the consolidation
process.
A
change in ownership interest in a subsidiary, without loss of
control, is accounted for as an equity transaction. If the Group
loses control of a subsidiary, it cancels the carrying amount of
the assets (including goodwill) and related liabilities,
non-controlling interests and other equity components, while
recognizing the profit or loss resulting from the transaction in
the relevant income statement. Any retained residual interest is
recognized at its fair value.
2.2.2.
Measuring
unit
The
financial statements as at December 31, 2020, including the figures
for the previous period (this fact not affecting the decisions
taken on the financial information for such periods) were restated
to consider the changes in the general purchasing power of the
functional currency of the Company (Argentine peso) pursuant to IAS
29 and General Resolution No. 777/2018 of the Argentine Securities
Commission. Consequently, the financial statements are stated in
the current measurement unit at the end of the reported
period.
In
accordance with IAS 29, the restatement of the financial statements
is necessary when the functional currency of an entity is the
currency of a hyperinflationary economy. To define a
hyperinflationary state, the IAS 29 provides a series of
non-exclusive guidelines that consist on (i) analyzing the behavior
of the population, prices, interest rates and wages before the
evolution of price indexes and the loss of the currency’s
purchasing power, and (ii) as a quantitative characteristic, which
is the most considered condition in practice, verifying if the
three-year cumulative inflation rate approaches or exceeds
100%.
Due to
different macroeconomic factors, the triennial inflation in 2020
was higher than such figure, as the goals of the Argentine
government, and other available projections, indicate that this
trend will not revert in the short term.
So as
to evaluate the mentioned quantitative condition and to restate the
financial statements, the Argentine Securities Commission
established that the series of indexes to be used in the IAS 29
application is the one established by the Argentine Federation of
Professional Councils in Economic Sciences.
Regard
being had to the mentioned index, the inflation was of 36.13% and
53.83% in the periods ended December 31, 2020 and 2019,
respectively.
The
following is a summary of the effects of the IAS 29
application:
Restatement
of the Balance Sheet
(i)
The monetary items
(those with a fixed face value in local currency) are not restated
since they are stated in the current measurement unit at the
closing date of the reported period. In an inflationary period,
keeping monetary assets causes the loss of purchasing power, and
keeping monetary liabilities causes gain in purchasing power as
long as those items are not tied to an adjustment mechanism
compensating those effects. The monetary loss or gain is included
in the income (loss) for the reported period.
-17-
English translation of the consolidated financial statements
originally filed in Spanish with the Argentine Securities
Commission (“CNV”).
In case of discrepancy, the consolidated financial statements filed
with the CNV prevail over this translation
CENTRAL PUERTO S.A.
(ii)
The assets and
liabilities subject to changes established in specific agreements
are adjusted in accordance with those agreements.
(iii)
Non-monetary items
measured at their current values at the end of the reported period
are not restated to be included in the balance sheet; however, the
adjustment process must be completed to determine the income (loss)
produced for having those non-monetary items in the terms of a
uniform measurement unit.
As at
December 31, 2020 and 2019, the Company counted with the following
items measured with the current value method: the share kept in
foreign currency of the items Trade and other receivables, Cash and
cash equivalents, Loans and borrowings that accrue interest, and
Trade and other payables.
(iv)
Non-monetary items
at historical cost or at current value of a date previous to the
closing of the reported period are restated at rates reflecting the
variation occurred at the general level of prices from the
acquisition or revaluation date until the closing date; then the
amounts restated for those assets are compared with the
corresponding recoverable values. Charges to the income (loss) for
the period due to property, plant and equipment depreciation and
intangible assets amortization, as well as other non- monetary
assets consumption are determined in accordance with the new
restated amounts.
As at
December 31, 2020 and 2019, the items subject to this restatement
process were the following:
-
Monetary items at
current values for a date previous to the closing of the period:
certain machines, equipment, turbogroups and auxiliary equipment of
the Property, Plant and Equipment item, which were measured at the
date of the Transition to IFRS (January 1, 2011) at their fair
value as at that date.
-
Non-monetary items
at historical cost: the remaining items Property, Plant and
Equipment, Intangible assets, Investment in associates, Inventories
and Deferred income tax liabilities.
(v)
When borrowing
costs in non-monetary assets are active in accordance with IAS 23,
the share of those cost compensating the creditor for the effects
of inflation is not capitalized.
The
Company proceeded to the activation of borrowing costs as stated in
Note 2.3.6.
(vi)
The restatement of
the non-monetary assets in the terms of a current measurement unit
at the end of the reported period without an equivalent adjustment
for tax purposes leads to a temporary taxable difference and to the
recognition of a deferred-tax liability whose balancing entry is
recognized in the income (loss) for the period. For the next
closing of the period, the deferred-tax items are restated for
inflation to determine the item on income (loss) for such
period.
In Note
7 the effects of this process are detailed.
Restatement
of the statement of income (loss) and other comprehensive
income
(i)
The expenses and
income are restated as from the date of accountable entry,
including interest and currency exchange differences, except for
those items not reflecting or including in their determination the
consumption of assets measured in currency of purchasing power
previous to the consumption entry, which are restated taking into
account the origin date of the asset related to the item (for
example, depreciation, devaluation and other consumptions of assets
valued at historical cost); and except for income (loss) emerging
from comparing two measurements expressed in currency of purchasing
power of different dates. For such purpose, it is necessary to
identify the compared amounts, separately restate them and compare
them again, but with amounts already restated.
(ii)
The income (loss)
for exposure to change in purchasing power of currency (RECPAM),
originated by the keeping of monetary assets and liabilities, is
shown in a separate item of the income (loss) for the
period.
-18-
English translation of the consolidated financial statements
originally filed in Spanish with the Argentine Securities
Commission (“CNV”).
In case of discrepancy, the consolidated financial statements filed
with the CNV prevail over this translation
CENTRAL PUERTO S.A.
Restatement
of the Statement of Changes in Equity
All the
components of equity are restated by applying the general prices
index as from the beginning of the period, and each variation of
such components is re-expressed as from the contribution date or as
from the moment in which such contribution was made through any
other form, with the exception of the account “Capital stock
-face value” which has been maintained for its nominal value
and the effects of their restatement can be found in the account
“Adjustment to capital stock”.
Restatement
of the Statement of Cash Flows
IAS 29
sets forth that all the items of this section shall be restated in
terms of the current measurement unit at the closing date of the
reported period.
The
monetary result generated by cash and equivalents to cash are
stated in the Statement of Cash Flows separately from the cash
flows resulting from operation, investment and financing activities
as a specific item of the conciliation between the existence of
cash and cash equivalents at the beginning and at the end of the
period.
2.3.
Summary
of significant accounting policies
The
following are the significant accounting policies applied by the
Group in preparing its consolidated financial
statements.
2.3.1.
Classification
of items as current and non-current
The
Group classifies assets and liabilities in the consolidated
statement of financial position as current and non-current. An
entity shall classify an asset as current when:
-
it expects to
realize the asset, or intends to sell or consume it, in its normal
operating cycle;
-
it holds the asset
primarily for the purpose of trading;
-
it expects to
realize the asset within twelve months after the reporting period;
or
-
the asset is cash
or a cash equivalent unless the asset is restricted from being
exchanged or used to settle a liability for at least twelve months
after the reporting period.
All
other assets are classified as non-current.
An
entity shall classify a liability as current when:
-
it is expected to
be settled in normal operating cycle;
-
It is held
primarily for the purpose of trading;
-
it is due to be
settled within twelve months after the reporting period;
or
-
there is no
unconditional right to defer the settlement of the liability for at
least twelve months after the reporting period.
All
other liabilities are classified as non-current.
Deferred tax assets
and liabilities are classified as non-current assets and
liabilities, in all cases.
-19-
English translation of the consolidated financial statements
originally filed in Spanish with the Argentine Securities
Commission (“CNV”).
In case of discrepancy, the consolidated financial statements filed
with the CNV prevail over this translation
CENTRAL PUERTO S.A.
2.3.2.
Fair
value measurement
The
Group measures certain financial instruments at their fair value at
each reporting date. In addition, the fair value of financial
instruments measured at amortized cost is disclosed in Note
10.6.
Fair
value is the price that would be received to sell an asset or paid
to transfer a liability in an orderly transaction between market
participants at the measurement date. The fair value measurement is
based on the presumption that the transaction to sell the asset or
transfer the liability takes place either:
-
in the principal
market for the asset or liability, or
-
in the absence of a
principal market, in the most advantageous market for the asset or
liability.
The
principal or the most advantageous market must be accessible to the
Group. The fair value of an asset or a liability is measured using
the assumptions that market participants would use when pricing the
asset or liability, assuming that market participants act in their
economic best interest.
A fair
value measurement of a non-financial asset takes into account a
market participant’s ability to generate economic benefits by
using the asset in its highest and best use or by selling it to
another market participant that would use the asset in its highest
and best use.
The
Group uses valuation techniques that are appropriate in the
circumstances and for which sufficient data are available to
measure fair value, maximizing the use of relevant observable
inputs and minimizing the use of unobservable inputs.
All
assets and liabilities for which fair value is measured or
disclosed in the consolidated financial statements are categorized
within the fair value hierarchy, described as follows, based on the
lowest level input that is significant to the fair value
measurement as a whole:
-
Level 1 input data:
quoted (unadjusted) prices in active markets for identical assets
or liabilities.
-
Level 2 input data:
valuation techniques with input data other than the quoted prices
included in Level 1, but which are observable for assets or
liabilities, either directly or indirectly.
-
Level 3 input data:
valuation techniques for which input data are not observable for
assets or liabilities.
2.3.3.
Transactions
and balances in foreign currency
Transactions in
foreign currencies are recorded by the Group at the related
functional currency rates prevailing at the date of the
transaction.
Monetary assets and
liabilities denominated in foreign currencies are translated at the
functional currency spot rate of exchange ruling at the reporting
period-end.
All
differences are taken to consolidated statement of income under
other operating income or expenses, or under finance income or
expenses, depending on the nature of assets or liabilities
generating those differences.
Non-monetary items
that are measured in terms of historical cost in a foreign currency
are translated using the exchange rates as at the dates of the
initial transactions. Non-monetary items measured by their fair
value in foreign currency are converted using exchange rates at the
date in which such fair value is determined.
-20-
English translation of the consolidated financial statements
originally filed in Spanish with the Argentine Securities
Commission (“CNV”).
In case of discrepancy, the consolidated financial statements filed
with the CNV prevail over this translation
CENTRAL PUERTO S.A.
2.3.4.
Revenue
recognition
2.3.4.1.
Revenue
from ordinary activities
IFRS 15
presents a five-step detailed model to explain revenue from
contracts with customers. Its fundamental principal lies on the
fact that an entity has to recognize revenue to represent the
transference of goods or services promised to the customers, in an
amount reflecting the consideration the entity expects to receive
in exchange for those goods or services at the moment of executing
the performance obligation. An asset is transferred when (or while)
the client gets control over such asset, defined as the ability to
direct the use and substantially obtain all the remaining benefits
of the asset. IFRS 15 requires the analysis of the
following:
-
If the contract (or
the combination of contracts) contains more than one promised good
or service, when and how such goods or services should be
granted.
-
If the price of the
transaction distributed to each performance obligation should be
recognized as revenue throughout time or at a specific moment.
According to IFRS 15, an entity recognizes revenue when the
performance obligation is satisfied, i.e. every time control over
those goods and services is transferred to the customer. The new
model does not include separate guidelines for the “sale of
goods” and the “rendering of services”; instead,
it requires that entities should evaluate whether revenue should be
recognized throughout time or at a specific moment, regardless of
the fact that it includes “the sale of goods” or
“the rendering of services”.
-
When the price
includes an estimation element of variable payments, how that will
affect the amount and the time to recognize such revenue. The
concept of variable payment estimation is broad. A transaction
price is considered as variable due to discounts, reimbursement,
credits, price concessions, incentives, performance bonus,
penalties and contingency agreements. The new model introduces a
big condition for a variable consideration to be considered as
revenue: only as long as it is very unlikely for a significant
change to occur in the cumulative revenue amount, when the
uncertainties inherent to the variable payment estimation are
solved.
-
When the incurred
cost to close an agreement and the costs to comply with it can be
recognized as an asset.
The
Company has a sole relevant revenue source, which consists on the
commercialization of energy produced in the spot market and under
the energy supply agreements, CAMMESA being its main
customer.
The
Company recognizes its sales revenue in accordance with the
availability of its machines’ effective power, the power and
steam supplied; and as balancing entry, a sales receivable is
recognized, which represents the Company’s unconditional
right to consideration owed by the customer. Billing for the
service is monthly made by CAMMESA in accordance with the
guidelines established by SEE; and compensation is usually received
in a maximum term of 90 days. Therefore, no implicit financing
components are recognized. The satisfaction of the performance
obligation is done throughout time since the customer
simultaneously receives and consumes the benefits given by the
performance of the entity as the entity does it.
Revenues from
energy, power and steam sales are calculated at the prices
established in the respective contracts or at the prices prevailing
in the electricity market, according to the regulations in force.
These include revenues from the sale of steam, energy and power
supplied and not billed until the closing date of the reported
period, valued at the prices defined in the contracts or in the
respective regulations.
Additionally, the
Group recognizes the sales from contracts regarding the supplied
energy and the prices established in such contracts, and as
balancing entry it recognizes a sale credit. Such credit represents
the
-21-
English translation of the consolidated financial statements
originally filed in Spanish with the Argentine Securities
Commission (“CNV”).
In case of discrepancy, the consolidated financial statements filed
with the CNV prevail over this translation
CENTRAL PUERTO S.A.
unconditional right
the Company has to receive the consideration owed by the customer.
Billing for the service is monthly made by CAMMESA in the case of
the contracts of the wind farms La Castellana and Achiras and for
the Energía plus contract in accordance with the guidelines
established by SEE; and compensation is received in a maximum term
of 90 days. Therefore, no implicit financing components are
recognized. For the rest of the clients, billing is also monthly
and done by the Company; and compensation is received in a maximum
term of 90 days. Therefore, no implicit financing components are
recognized. The satisfaction of the performance obligation is done
throughout time since the customer simultaneously receives and
consumes the benefits given by the performance of the entity as the
entity does it.
The
Group recognizes revenues from resale and distribution of gas and
revenues for the monthly management of the thermal power plant CVO
in accordance with the monthly fees established in the respective
contracts and as balancing entry, it recognizes a sale credit. Such
credit represents the unconditional right the Company has to
receive the consideration owed by the customer. Billing for the
service is also monthly made by the Company and compensation is
generally received in a maximum term of 90 days. Therefore, no
implicit financing components are recognized.
The
detail of revenues from ordinary activities of the Group is
included in Note 5 to these consolidated financial
statements.
2.3.4.2.
Other
income and expenses - Interest
For all
financial assets and liabilities measured at amortized cost and
interest bearing financial assets classified as available for sale,
interest income or expense is recorded using the effective interest
rate method, which is the rate that exactly discounts the estimated
future cash payments or receipts through the expected life of the
financial instrument or a shorter period, where appropriate, to the
net carrying amount of the financial asset or liability. In
general, interest income and expense are included in finance income
and expenses in the consolidated statement of income, respectively,
unless they derive from operating items (such as trade and other
receivables or trade and other payables); in that case, they are
booked under other operating income and expenses, as the case may
be.
2.3.5. Taxes
Current income tax
Current
income tax assets and liabilities for the year are measured at the
amount expected to be recovered from or paid to the taxation
authorities. The tax rates and tax laws used to compute those
amounts are those that are enacted or substantively enacted, at the
end of the reporting period. The statutory tax rate for the Group
for the fiscal year 2020 is 30%.
Current
income tax relating to items recognized directly in equity is
recognized in equity and not in the consolidated statement of
income.
Management
periodically assesses the positions taken in each tax report
regarding the situations in which the applicable tax regulations
are subject to interpretation, and it determines whether they must
be treated as uncertain tax treatment, and in such case, whether it
must be treated independently or collectively with one or more tax
treatments, pursuant to IFRIC 23. For these cases, we use the
approach which better predicts uncertainty and applies criteria to
identify and quantify uncertainties.
Deferred
income tax
Deferred income tax
is provided using the liability method on temporary differences at
the end of the reporting period between the tax bases of assets and
liabilities and their related carrying amounts.
-22-
English translation of the consolidated financial statements
originally filed in Spanish with the Argentine Securities
Commission (“CNV”).
In case of discrepancy, the consolidated financial statements filed
with the CNV prevail over this translation
CENTRAL PUERTO S.A.
Deferred income tax
liabilities are recognized for all taxable temporary differences,
except:
-
where the deferred
income tax liability arises from the initial recognition of
goodwill or of an asset or liability in a transaction that is not a
business combination and, at the time of the transaction, affects
neither the accounting profit nor taxable profit or
loss;
-
in respect of
taxable temporary differences associated with investments in
subsidiaries and associates, where the timing of the reversal of
the temporary differences can be controlled and it is probable that
the temporary differences will not reverse in the foreseeable
future.
Deferred income tax
assets are recognized for all deductible temporary differences and
tax carry forwards losses, to the extent that it is probable that
taxable profit will be available against which the deductible
temporary differences, and/or the tax losses carry forward can be
utilized, except:
-
where the deferred
income tax asset arises from the initial recognition of an asset or
liability in a transaction that is not a business combination and,
at the time of the transaction, affects neither the accounting
profit nor taxable profit or loss;
-
in respect of
deductible temporary differences associated with investments in
subsidiaries, associates and interests in joint ventures, deferred
income tax assets are recognized only to the extent that it is
probable that the deductible temporary differences will reverse in
the foreseeable future and taxable profit will be available against
which those differences can be utilized.
The
carrying amount of deferred income tax assets is reviewed at each
reporting period date and reduced against income or loss for the
period or other comprehensive income, as the case may be, to the
extent that it is no longer probable that sufficient taxable profit
will be available to allow all or part of the deferred income tax
asset to be utilized (recovered). Unrecognized deferred income tax
assets are reassessed at each reporting period date and are
recognized with a charge to income or other comprehensive income
for the period, as the case may be, to the extent that it has
become probable that future taxable profits will allow the deferred
income tax asset not previously recognized to be
recovered.
Deferred income tax
assets and liabilities are measured at undiscounted nominal value
at the tax rates that are expected to apply in the year when the
asset is realized or the liability is settled, based on tax rates
and tax laws that have been enacted or substantively enacted at the
reporting period date.
Deferred income tax
relating to items recognized outside profit or loss is recognized
outside profit or loss. Deferred income tax items are recognized in
correlation to the underlying transactions either in other
comprehensive income or directly in equity.
Deferred income tax
assets and deferred income tax liabilities are offset if a legally
enforceable right exists to set off current income tax assets and
liabilities and the deferred income taxes relate to the same
taxable entity and the same taxation authority.
Uncertaintites
over income tax treatements
The
Group determines whether each tax treatment should be considered
independently or whether some tax treatments should be considered
together and uses an approach that provides better predictions of
the resolution of the uncertainty.
The
Group applies significant judgment when identifying uncertainties
on the income tax treatment. The Group evaluated whether the
Interpretation had an impact on its consolidated financial
statements, especially within
-23-
English translation of the consolidated financial statements
originally filed in Spanish with the Argentine Securities
Commission (“CNV”).
In case of discrepancy, the consolidated financial statements filed
with the CNV prevail over this translation
CENTRAL PUERTO S.A.
the
framework of tax inflation adjustment in determining the tax income
of mentioned periods:
a)
Income tax return
for fiscal year 2014
In
February 2015 CPSA, for itself and as the successor company of
Hidroeléctrica Piedra del Águila (HPDA) (the merged
company) filed income tax returns for the nine-month period ended
September 30, 2014, applying the adjustment for inflation mechanism
established by the Argentine Income Tax Law. In addition, the
Company filed its income tax return for the three-month period
ended December 31, 2014, applying the same adjustment for inflation
mechanism established by the Argentine Income Tax Law.
b)
Action for recovery
- Income tax refund for fiscal period 2010
In
December 2014, the Company, as merging company and continuing
company of HPDA, raised a recourse action before fiscal authorities
regarding the income tax for the fiscal period 2010, which was
incorrectly entered by HPDA. This recourse action seeks to recover
the income tax entered by HPDA in accordance with the lack of
application of the inflation- adjustment mechanism established by
the Law on Income Tax. In December 2015, since the term stated by
Law no. 11,683 elapsed, the Company brought a contentious-
administrative claim before the National Court to ask for its right
to obtain the income tax recovery.
In
October 2018, the Company was served notice of the judgment issued
by the Federal Contentious- Administrative Court No. 5, which
granted the right to recourse. The judgment ordered tax authorities
to return the amount of 67,612 (at historical values) to the
Company plus the interest stated in the BCRA Communication 14290
and ordered that legal cost must be borne by the defendant. Such
judgment was appealed by the National Tax Administration, and on
September 9, 2019, Division I of the National Court of Appeals of
the Federal Contentious- Administrative Court
(“CNACAF”) confirmed the appealed judgment. On
September 24, 2019, the National Tax Administration raised Federal
Extraordinary Appeal (“REF”) against CNACAF judgment,
which was replied by the Company. On October 29, 2019, CNACAF
granted the REF and sent the file to the Argentine Supreme
Court.
c)
Action for recovery
- income tax refund for fiscal years 2009, 2011 and
2012
In
December 2015, the Company filed a petition with the Argentine Tax
Authorities for the recovery of income tax for the fiscal year
2009, in the amount of 20,395 at historical values which had been
incorrectly paid by the Company in excess of our income tax
liability. By filling such action, the Company seeks to recover the
excess income tax paid by CPSA due to the failure to apply the
adjustment for inflation set forth in the Argentine Income Tax Law.
On April 22, 2016, after the term required by Law no. 11,683
expired, the Company filed an action for recovery for the amount
claimed with the Argentinean Tax Court. On September 27, 2019, the
judge entered judgment rejecting the complaint filed by the
Company. Such judgment was appealed by the Company last October 4,
2019.
In
December 2017, the Company, as merging company and continuing
company of HPDA, filed a petition with the Argentine Tax
Authorities for the recovery of 52,783 at historical values paid in
excess by HPDA for payment of Income Tax for 2011 fiscal period.
The purpose of such action is to recover the income tax paid by
HPDA due to the failure to apply the adjustment for inflation
mechanism aforementioned. On April 1, 2019 such claim was rejected
by national fiscal authorities. Therefore, the Company filed an
administrative and legal action on April 25, 2019.
In
December 2018, the Company brought two administrative complaints of
recovery before AFIP: the first one was filed by the Company, as
merging company and continuing company of HPDA, regarding the
income tax
-24-
English translation of the consolidated financial statements
originally filed in Spanish with the Argentine Securities
Commission (“CNV”).
In case of discrepancy, the consolidated financial statements filed
with the CNV prevail over this translation
CENTRAL PUERTO S.A.
for the
fiscal period 2012 that amounted to 62,331 at historical values,
which was entered in excess by HPDA. The second complaint was filed
by the Company regarding the income tax for the same fiscal period
that amounted to 33,265 at historical values, which was entered in
excess by the Company. These recourse actions seek to recover the
income tax entered by HPDA and the Company in accordance with the
lack of application of the inflation-adjustment mechanism
aforementioned. On September 12, 2019, the Company filed both
recourse actions before the Federal Contentious- Administrative
Court against AFIP-DGI in accordance with Section 82, paragraph
“c” of Law no. 11,683 (restated text 1998 as amended),
as the term established in the second paragraph of Section 81 of
such law had elapsed.
d)
Action for recovery
- Income tax for the fiscal year 2015
On
December 23, 2020, the Company submitted before the fiscal
authorities an action for recovery of the income tax for the fiscal
year 2015 for the amount of 129,231 (at historical values) unduly
paid by CPSA. The purpose of the action for recovery is to obtain
reimbursement of the income tax paid by CPSA based on the lack of
application of the inflation adjustment mechanism set forth in the
Argentine Income Tax Act.
The
Group considered, based on the opinion of its legal counselors and
on the IFRIC 23 accounting guidelines:
1)
regarding the income tax 2014 determination stated in a), that it
is probable that tax authorities will accept the position and,
therefore, it is not required to register a liability under such
item, and 2) regarding recourse actions for income tax, except for
the case of recourse action by HPDA for the fiscal period 2011,
that it is also probable that tax authorities will accept the
positions adopted by the Company; therefore, an asset has been
recognized for such recourse actions.
The
corresponding asset is included in the item “Other
non-financial assets” of Current Assets under “Income
Tax Credits” and it amounts to 193,282 as of December 31,
2020.
Other
taxes related to sales and to bank account
transactions
Revenues from
recurring activities, expenses incurred and assets are recognized
excluding the amount of sales tax, as in the case of value-added
tax or turnover tax, or the tax on bank account transactions,
except:
-
where the tax
incurred on a sale or on a purchase of assets or services is not
recoverable from the taxation authority, in which case the sales
tax is recognized as part of the cost of acquisition of the asset
or as part of the expense item as the case may be;
-
receivables and
payables are stated including value-added tax.
The
charge for the tax on bank account transactions is presented in the
administrative and selling expenses line within the consolidated
statement of income.
The net
amount of the tax related to sales and to bank account transactions
recoverable from, or payable to, the taxation authority is included
as a non-financial asset or liability, as the case may
be.
2.3.6.
Property,
plant and equipment
Property, plant and
equipment are measured at the acquisition cost restated according
to Note 2.2.2, net of the cumulative depreciation and/or the
cumulative losses due to impairment, if any. This cost includes the
cost of replacing components of property, plant and equipment and
the cost for borrowings related to long-term construction projects,
as long as the requirements for their recognition as assets are
fulfilled.
When
significant parts of property, plant and equipment are required to
be replaced at intervals, the Group derecognizes the replaced part
and recognizes the new part with its own associated useful life
and
-25-
English translation of the consolidated financial statements
originally filed in Spanish with the Argentine Securities
Commission (“CNV”).
In case of discrepancy, the consolidated financial statements filed
with the CNV prevail over this translation
CENTRAL PUERTO S.A.
depreciation.
Likewise, when a major maintenance is performed, its cost is
recognized as a replacement if the conditions for the recognition
thereof as an asset are met. All other regular repair and
maintenance costs are recognized in the consolidated statement of
income as incurred.
Electric power
facilities and materials and spare parts related to the Puerto
Combined Cycle plant are depreciated on a unit-of-production
basis.
Electric power
facilities related to the Luján de Cuyo combined cycle plant
and cogeneration unit and the Brigadier Lopez thermal station are
depreciated on a straight-line basis over the total useful lives
estimated.
Electric power
facilities and auxiliary equipment of Piedra del Águila
hydroelectric power plant are depreciated on a straight-line basis
over the remaining life of the concession agreement of the
mentioned power plant.
The
depreciation of the remaining property, plant and equipment is
calculated on a straight-line basis over the total estimated useful
lives of the assets as follows:
-
Buildings: 5 to 50
years.
-
Wind turbines: 20
years.
-
Lands are not
depreciated.
-
Material and spare
parts: based on the useful life of related machinery and equipment
to be replaced.
-
Furniture, fixtures
and equipment: 5 to 10 years.
-
Others:3 to 5
years.
-
Turbines and
Construction in progress: they are not depreciated until they are
not in conditions of being used.
An item
of property, plant and equipment and any significant part initially
recognized is derecognized upon disposal or when no future economic
benefits are expected from its use or disposal. Any gain or loss
arising on derecognition of the asset (calculated as the difference
between the net disposal proceeds and the carrying amount of the
asset) is included in the consolidated statement of income when the
asset is derecognized.
The
residual values, useful lives and methods of depreciation are
reviewed at each reporting period end and adjusted prospectively,
if appropriate.
During
periods ended December 31, 2020 and 2019, the Group capitalized
interest for an amount of 303,299 and 231,235, respectively. The
rate used to capitalize interest corresponds to the effective rate
of specific loans used to finance the projects, net of the share
compensating the creditor for the effects of
inflation.
2.3.7.
Intangible
assets
Intangible assets
acquired separately are measured on initial recognition at
acquisition cost restated according to Note 2.2.2. The cost of the
intangible assets acquired in a business combination is their fair
value at the date of the acquisition. Following initial
recognition, intangible assets are carried at cost less accumulated
amortization (if they are considered as having finite useful lives)
and accumulated impairment losses, if any.
The
useful lives of intangible assets are assessed as either finite or
indefinite. The useful lives of the intangible assets recognized by
the Group are finite.
-26-
English translation of the consolidated financial statements
originally filed in Spanish with the Argentine Securities
Commission (“CNV”).
In case of discrepancy, the consolidated financial statements filed
with the CNV prevail over this translation
CENTRAL PUERTO S.A.
Intangible assets
with finite useful lives are amortized over their useful economic
lives. The amortization period and the amortization method for an
intangible asset with a finite useful life are reviewed at least at
the end of each reporting period. Changes in the expected useful
life or the expected pattern of consumption of the asset is
accounted for by changing the amortization period or method, as
appropriate, and are treated prospectively as changes in accounting
estimates. The amortization expense on intangible assets with
finite lives is recognized in the consolidated statement of income
in the expense category consistent with the function of the
intangible assets.
The
Group’s intangible assets are described in note
12.
2.3.8.
Impairment
of property, plant and equipment and intangible assets
The
Group assesses at each reporting period-end whether there is an
indication that an individual component or a group of property,
plant and equipment and/or intangible assets with finite useful
lives may be impaired. If any indication exists, the Group
estimates the asset’s recoverable amount. An asset’s
recoverable amount is the higher of the fair value less costs to
sell that asset, and its value-in-use. That amount is determined
for an individual asset, unless the asset does not generate cash
inflows that are largely independent of those from other assets or
groups of assets; in which case, the cash flows of the group of
assets that form part of the cash-generating unit
(“CGU”) to which they belong are taken.
Where
the carrying amount of an individual asset or CGU exceeds its
recoverable amount, the individual asset or CGU, as the case may
be, is considered impaired and is written down to its recoverable
amount.
In
assessing value in use of an individual asset or CGU, the estimated
future cash flows are discounted to their present value using a
pre-tax discount rate that reflects current market assessments of
the time value of money and the risks specific to the individual
asset or CGU, as the case may be.
In
determining fair value less costs to sell, recent market
transactions are taken into account, if available. If no such
transactions can be identified, an appropriate valuation model is
used. These calculations are verified by valuation multiples,
quoted values for similar assets on active markets and other
available fair value indicators, if any.
The
Group bases its impairment calculation on detailed budgets and
forecast calculations which are prepared separately for each of the
Group’s CGU to which the individual assets are allocated.
These detailed budgets and forecast calculations generally cover a
five-year period. For longer periods, a long-term growth rate is
calculated and applied to project future cash flows after the fifth
year. Budgets and calculations related to Complejo
Hidroeléctrico Piedra del Águila are limited to the term
of the concession contract.
Impairment losses
of continuing operations are recognized in a specific line of the
consolidated statement of income.
In
addition, for the assets for which an impairment loss had been
booked, as of each reporting period-end, an assessment is made
whether there is any indication that previously recognized
impairment losses may no longer exist or may have
decreased.
Should
there be such triggering event, the Group makes an estimate of the
recoverable amount of the individual asset or of the cash
generating unit, as the case may be.
A
previously recognized impairment loss is reversed only if there has
been a change in the assumptions used to determine the individual
assets or CGU’s recoverable amount since the last impairment
loss was recognized. The reversal is limited so that the carrying
amount of the asset or CGU does not exceed its recoverable amount,
nor exceed the carrying amount that would have been determined, net
of the related depreciation or
-27-
English translation of the consolidated financial statements
originally filed in Spanish with the Argentine Securities
Commission (“CNV”).
In case of discrepancy, the consolidated financial statements filed
with the CNV prevail over this translation
CENTRAL PUERTO S.A.
amortization, had
no impairment loss been recognized for the asset or CGU in prior
periods. Such reversal is recognized in the statement of income in
the same line in which the related impairment charge was previously
recognized (generally under the cost of sales or other operating
expenses), unless the asset is carried at a revalued amount, in
which case, the reversal is treated as a revaluation
increase.
The
Group has identified as signs of potential impairment of its
property, plant and equipment and/or its intangible assets with
limited useful life, the fall in the share value of the stock of
the Company, the current economic uncertainties, the suspension of
the application of the price update mechanism in the spot market
established in Resolution 31, as per Note 1.2.f) and, in the
specific case of the Company´s gas turbines, the uncertainty
about new projects that would enable the use of the acquired
turbines.
In
order to measure the recoverability of its property, plant and
equipment and its intangible assets with a limited useful life and
with signs of impairment in its value, with the exception of the
generating groups classified as “Turbines”, the Group
has used their value in use. As a result of the recoverability
analysis, the Group has decided that the book value of the assets
that form the cash-generating units of the segment of electric
energy generation with renewable energies and the ones that
correspond to the thermal power stations Puerto Nuevo and Nuevo
Puerto, the cogeneration unit in Luján de Cuyo, the
cogeneration unit Terminal 6 San Lorenzo and the hydroelectric
power station Piedra del Águila, shall not exceed their
recoverable value as at December 31, 2020.
CGUs
Thermal Station Brigadier López and Combined cycle plant in
Luján de Cuyo
The
Group has estimated that the book value of the assets of the
cash-generating unit of the Thermal Station Brigadier López
exceeds its recoverable asset by 2,183,301. Therefore, an
impairment charge was determined and allocated on a pro-rata basis
to property, plant and equipment by 1,584,097 within items
"Electric power facilities", "Lands and buildings", "Construction
in progress" and "Others" and to intangible assets by 599,204 under
the item “Impairment of property, plant and equipment and
intangible assets” of the consolidated income statement for
the year ended December 31, 2020. After recognizing this
impairment, the book value of the property, plant and equipment and
the intangible assets for the Thermal Station Brigadier López
amounted to 9,244,582 and 3,496,869, respectively.
In
addition, the Group has estimated that the book value of the assets
of the cash generating unit of the combined cycle plant located in
Luján de Cuyo exceeds its recoverable value by 332,818.
Therefore, an impairment of property, plant and equipment charge
was determined in the items “Electric power
facilities”, “Lands and buildings” and
“Others” and was registered under the item
“Impairment of property, plant and equipment and intangible
assets” of the consolidated income statement for the year
ended December 31, 2020. After recognizing such impairment, the
book value of the property, plant and equipment of the Luján
de Cuyo combined cycle power plant is 2,382,723.
The
Group determined the recoverable value considering different
alternatives weighted in relation with the evolution of prices for
energy and power, the completion date of the works of cycle closing
of the Thermal Station Brigadier López and the macroeconomic
variables regarding exchange rate and inflation. This approach
implied preparing different scenarios with different estimations of
the expected cash flows, when considering such variables and
assigning occurrence probabilities, based on the experience and
expectations of the Group about the outcome of the uncertainties
involved.
The key
assumptions to estimate the value in use are as
follows:
-
Gross margin: the
margin has been determined for the budgeted period (5 years) based
on the prices of the sale of energy included in Resolution 31 and
energy supply agreements subscribed, whereas the costs have been
determined over the base of the costs of operation incurred in the
past in both power stations. The highest cost was maintenance,
which was estimated maintaining the conditions of the agreements
in
-28-
English translation of the consolidated financial statements
originally filed in Spanish with the Argentine Securities
Commission (“CNV”).
In case of discrepancy, the consolidated financial statements filed
with the CNV prevail over this translation
CENTRAL PUERTO S.A.
force
with the supplier Siemens S.A. No growth rates were used to
extrapolate the inflows of funds after the budgeted period, since
the inflows after the last year of the budgeted period remained
steady, pursuant to IAS 36.
-
Discount rate: it
represents the market evaluation of the specific risks of the
Company, taking into consideration the time-value of money. The
calculation for the discount rate is based on the circumstances of
the market participants and it is derived from the weighted average
cost of capital (WACC). The WACC rate takes into consideration both
the Company’s debt and equity. The cost of equity is derived
from the expected return of the investment, whereas the cost of
debt is based on the conditions of the debt to which the rest of
the market participants could access to. The specific risks of the
operational segment are incorporated by applying individual beta
factors, which are annually assessed from the available public
information of the market.
The
discount rates used for determining the value in use as of December
31, 2020 and 2019 were 13.4% and 12.3% for the flows corresponding
to years 2021 and 2020, respectively, and 13.7% and 12.6% for the
flows corresponding to the following years, respectively, both
after income tax.
Any
increase in the discount rate would entail an additional
depreciation for the cash-generation units Thermal Station
Brigadier López and Combined cycle plant in Luján de
Cuyo.
-
Macroeconomic
variables: the estimated inflation and devaluation rates, as well
as the exchange rates used, were obtained from external sources
being those consulting firms dedicated to the local and global
economic analysis, widely experienced in the market. An increase in
the inflation rates over the devaluation rates regarding the
variables used in the determination of the value in use would
entail an additional depreciation for the cash-generation units
Thermal Station Brigadier López and Combined cycle plant in
Luján de Cuyo.
Turbines
The
Group has revised, as at December 31, 2020, the recoverability of
its turbines as individual assets and it has estimated that the
book value of the generating group General Electric, which is
stored in the facilities of Nuevo Puerto power station, and the two
generating groups Siemens, which are stored in the supplier’s
facilities, exceed their recoverable value by 1,500,186. In order
to determine the recoverable value of such generating groups, the
Group has used the fair value less costs of sale approach, basing
their estimation on a purchase offer received under the framework
of negotiations for the sale of the generation groups Siemens,
since such offer represents the fair value of the turbines, while
in the case of the generating group General Electric the fair value
less costs of sale estimation was based in the valuation performed
by a hired independent specialist, adding an estimation of the
necessary costs for the disposition of the asset in the
international market pursuant to the customs and tax regulations in
force and pursuant to the history of purchase and sale of assets
operations of similar characteristics.
The
fair value determined for the turbines has a fair value hierarchy
Level 3, using the market approach technique. The key assumptions
which the estimation of fair value of the turbines is more
sensitive to are the reference values of transactions which involve
similar gas turbines, considering the value per kW of power at the
date of the valuations, of comparable equipment, taking into
account technical variables, brand and model, geographic location,
preservation status, use, year of origin, among
others.
The
charge for the impairment of the above-mentioned turbines was
recorded in the item “Impairment of property, plant and
equipment and intangible assets” of the consolidated income
statement for the year ended December 30, 2020. After recognizing
the impairment, the book value of the General Electric and Siemens
generation groups amounts to 1,038,135 and 2,359,451,
respectively.
-29-
English translation of the consolidated financial statements
originally filed in Spanish with the Argentine Securities
Commission (“CNV”).
In case of discrepancy, the consolidated financial statements filed
with the CNV prevail over this translation
CENTRAL PUERTO S.A.
As of
December 31, 2020, the Siemens generation groups were classified as
property, plant and equipment available for sale, as described in
Note 18.5.
Turbines, Thermal
Station Brigadier López and Combined cycle plant located in
Luján de Cuyo belong to the electric power generation from
conventional sources operating segment.
2.3.9.
Financial
instruments. Presentation, recognition and measurement
A
financial instrument is any contract that gives rise to a financial
asset of one entity and a financial liability or equity instrument
of another entity.
2.3.9.1. Financial
assets Classification
According to IFRS 9
“Financial instruments”, the Group classifies its
financial assets in three categories:
-
Financial assets at
amortized cost
A
financial asset is measured at amortized cost if both of the
following conditions are met: (i) the asset is held within a
business model whose objective is to hold assets in order to
collect contractual cash flows; and (ii) the contractual terms of
the financial asset give rise on specified dates to solely payments
of principal and interest.
Additionally, and
for those assets complying with the above-mentioned conditions,
IFRS 9 provides for the option of determining, at initial
recognition, an asset measured at fair value if doing so would
eliminate or significantly reduce a measurement or recognition
inconsistency, which would appear if the assets or liabilities
valuation or the recognition of their profits or losses are made on
different grounds. The Group has not classified a financial asset
at fair value using this option.
At the
closing of these consolidated financial statements, the financial
assets at amortized cost of the Group include certain cash elements
and cash equivalents and trade and other receivables.
-
Financial assets at
fair value through other comprehensive income
Financial assets
are measured at fair value through other comprehensive income if
they are held in a business model whose objective is achieved by
both collecting contractual cash flows and selling financial
assets.
At the
closing of these consolidated financial statements, the Group has
not financial assets at fair value through other comprehensive
income.
-
Financial assets at
fair value through profit or loss
Any
financial assets at fair value through profit or loss belong to a
residual category that includes the financial assets that are not
held in one of the two business models mentioned, including those
kept to negotiate and those classified at fair value at initial
recognition.
At the
closing of these consolidated financial statements, the financial
assets of the Group at fair value through profit or loss include
mutual funds, public debt securities, stocks and corporate bonds
accounted under other financial assets.
Recognition
and measurement
The
purchase and sale of financial assets are recognized at the date on
which the Group commits to purchase or sale the asset.
-30-
English translation of the consolidated financial statements
originally filed in Spanish with the Argentine Securities
Commission (“CNV”).
In case of discrepancy, the consolidated financial statements filed
with the CNV prevail over this translation
CENTRAL PUERTO S.A.
Financial assets
valued at amortized cost are initially recognized at their fair
value plus cost of transaction. These assets accrue interest
according to the effective interest rate method.
Financial assets
valued at fair value through profit or loss and other comprehensive
income are initially recognized at fair value, and transaction
costs are recognized as expenses in the comprehensive income
statement. Subsequently, they are valued at fair value. Changes in
fair value and income from the sale of financial assets at fair
value through profit or loss and other comprehensive income are
recorded in Finance Income or Finance Expenses and Other
comprehensive income, respectively, in the consolidated statement
of income and comprehensive income, respectively.
In
general, the Group uses the transaction price to determine the fair
value of a financial instrument at the initial recognition. In the
rest of the cases, the Group only records revenue or loss at
initial recognition if the fair value of the instrument is
evidenced with other comparable and visible transactions of the
market for the same instrument or if it is based on a valuation
technique that only includes visible market data. Revenue or loss
not recognized at the initial recognition of a financial asset is
later recognized as long as they derive from a change in factors
(including time) in which the market participants consider
establishing the price.
The
profit or loss of debt instruments are measured at amortized cost
and are not determined in a hedge relationship. They are recognized
in profit or loss when the financial assets are removed or when
impairment is recognized; and during the amortization process using
the effective interest rate method. The Group only reclassifies all
investments in debt instruments when it changes the business model
used to manage those assets.
Derecognition
of financial assets
A
financial asset (or, where applicable, a part of a financial asset
or part of a group of similar financial assets) is derecognized;
that is to say, it is deleted from the statement of financial
position, when:
-
the contractual
rights to receive cash flows from the asset have
expired;
-
the contractual
rights to receive cash flows from the asset have been transferred
or an obligation has been assumed to pay the received cash flows in
full without material delay to a third party under a
‘pass-through’ arrangement; and either (a) all the
risks and rewards of the asset have been transferred substantially,
or (b) all the risks
and rewards of the asset have neither been transferred nor retained
substantially, but control of the asset has been
transferred.
When
the contractual rights to receive cash flows from an asset have
been transferred or a pass-through arrangement has been entered
into, but all of the risks and rewards of the asset have neither
transferred nor retained substantially and no control of it has
been transferred, such asset shall continue to be recognized to the
extent of the Group’s continuing involvement in it. In this
case, the Group shall also recognize the associated liability. The
transferred asset and the associated liability are measured on a
basis that reflects the rights and obligations that the Group has
retained.
Impairment
of financial assets
IFRS 9
establishes an “expected credit loss” model
(“ECL”). This requires the application of considerable
judgment with regard to how changes in economic factors affect ECL,
which is determined over a weighted average base. ECL results from
the difference between contractual cash flows and cash flows at
current value that the Group expects to receive.
The
impairment model set forth by IFRS 9 is applicable to the financial
assets measured at amortized value or at fair value through changes
in other comprehensive income, except for the investment in equity
securities and assets from the contracts recognized under IFRS
15.
-31-
English translation of the consolidated financial statements
originally filed in Spanish with the Argentine Securities
Commission (“CNV”).
In case of discrepancy, the consolidated financial statements filed
with the CNV prevail over this translation
CENTRAL PUERTO S.A.
Pursuant to IFRS 9,
loss allowances are measured using one of the following
bases:
-
The 12-month ECL:
these are expected credit losses that result from those default
events on the financial instrument that are possible within 12
months after the reporting date; and
-
Full lifetime
expected credit losses: these are expected credit losses that
result from all possible default events over the life of the
financial instrument.
Regard
being had to the clients with which the Group operates and on the
base of the foregoing criteria, the Group did not identify expected
credit losses.
With
regard to financial placements and according to the placement
policies in force, the Group monitors the credit rate and the
credit risk of these instruments. Pursuant to the analysis, the
Group did not identify the need to record impairment of these types
of instruments.
2.3.9.2.
Financial
liabilities
Initial
recognition and subsequent measurement
Financial
liabilities are classified, at initial recognition, as financial
liabilities at fair value through profit or loss, loans and
borrowings, or as derivatives designated as hedging instruments in
an effective hedge ratio, as appropriate.
Financial
liabilities are initially recognized at their fair value, net of
the incurred transaction costs. Since the Group has no financial
assets whose characteristics require the fair value accounting,
according to IFRS, after the initial recognition, the financial
assets are valued at amortized cost. Any difference between the
amount received as financing (net of transaction costs) and the
reimbursement value is recognized in comprehensive income
throughout the life of the debt financial instrument using the
method of effective interest rate.
At the
closing of these consolidated financial statements, the financial
liabilities classified as loans and borrowings of the Group include
Trade and other payables, and Loans and borrowings that accrue
interest.
Derecognition
of financial liabilities
A
financial liability is derecognized when the obligation under the
liability is discharged or cancelled or expires.
When an
existing financial liability is replaced by another from the same
lender on substantially different terms, or the terms of an
existing liability are substantially modified, such an exchange or
modification is treated as a derecognition of the original
liability and the recognition of a new liability, and the
difference in the respective carrying amounts is recognized as
finance income or costs in the statement of income, as the case may
be.
2.3.9.3.
Offsetting
financial assets and financial liabilities
Financial assets
and financial liabilities are offset, and the net amount presented
in the statement of financial position if, and only if, there is a
currently enforceable legal right to offset the recognized amounts
and there is an intention to settle on a net basis, or to realize
the assets and settle the liabilities simultaneously.
2.3.9.4.
Financial
assets and liabilities with related parties
Assets
and liabilities with related parties are recognized initially at
fair value plus directly attributable transaction costs. As long as
credits and debts with related parties do not derive from
arms-length transactions, any difference arising at the initial
recognition between such fair value and the consideration given or
received in return shall be considered as an equity transaction
(capital contribution or payment of dividends, which will depend on
whether it is positive or negative).
-32-
English translation of the consolidated financial statements
originally filed in Spanish with the Argentine Securities
Commission (“CNV”).
In case of discrepancy, the consolidated financial statements filed
with the CNV prevail over this translation
CENTRAL PUERTO S.A.
Following initial
recognition, these receivables and payables are measured at their
amortized cost through the EIR method. The EIR amortization is
included in finance income or costs or other operating income or
expenses in the statement of income, depending on the nature of the
liability giving rise to it.
2.3.9.5. Derivative
financial instruments and hedge accounting Initial recognition and
subsequent measurement
The
derivative financial instruments used by the Group are initially
recognized through their fair values at the date on which the
contract is entered into, and they are subsequently measured again
at their fair value. The derivative financial instruments are
accounted as financial assets when their fair value is positive and
as financial liabilities when their fair value is
negative.
The
method to recognize the loss or income from the change in fair
value depends on whether the derivative was determined as a hedge
instrument; in such case, on the nature of the item it is covering.
The Company can determine certain derivative as:
-
Fair value
hedge;
-
Cash flow
hedge;
At the
beginning of the transaction, the Group records the relationship
between the hedge instruments and items covered, as well as its
objectives for risk management and the strategy to make different
hedge operations. It also records its assessment, both at the
beginning and on a continuous base, on whether the derivatives used
in the hedge transactions are highly effective to compensate
changes in fair value or in the cash flows of the items
covered.
Fair
value hedge
Changes
in fair value of derivatives determined and classified as fair
value hedge are recorded in the statement of comprehensive income
together with any change in the fair value of the covered asset or
liability attributable to the covered risk.
Cash
flow hedge
The
effective part of changes in fair value of the derivatives
determined and classified as cash flow hedge are recognized in
Other comprehensive income. The loss or income related to the
non-effective part is immediately recognized in the statement of
comprehensive income within the Finance Expenses or Finance Income,
respectively.
The
cumulative amounts in Other comprehensive income are recorded in
the statement of comprehensive income in the periods in which the
item covered affects the comprehensive income. In the case of
interest rates hedge, this means the amounts recognized in equity
are reclassified as net finance income as interest is accrued on
associated debts.
As at
December 31, 2020, the Group has no hedging derivative
instruments.
Swap
contracts of interest rate are measured at their current value at
the closing of each period or fiscal year and are stated as assets
or liabilities depending on the rights and obligations emerging
from the respective contracts. Swap contracts were classified as
efficient hedge of cash flows risk. Changes in the accounting
measure of swap contracts are recognized in equity in the account
Other comprehensive income. These changes recognized in equity are
reclassified at the loss or income for the period or fiscal year in
which the interest of variable rate loans object of the hedge is
recognized in the statement of comprehensive income.
-33-
English translation of the consolidated financial statements
originally filed in Spanish with the Argentine Securities
Commission (“CNV”).
In case of discrepancy, the consolidated financial statements filed
with the CNV prevail over this translation
CENTRAL PUERTO S.A.
If the
hedge instrument expires or is sold, it is expired or executed
without a replacement or successive renewal (as part of the hedging
strategy), or if its appointment as hedge is revoked, or if the
hedge no longer complies with the requirements to apply hedge
accountability, any cumulative revenue or loss previously
recognized in the other comprehensive income will stay separate in
equity until the expected transaction takes place. If in the future
transaction it is not expected to have the amount included in the
cash flow hedge reserve, it must be immediately reclassified to the
consolidated comprehensive income.
2.3.10.
Inventories
Inventories are
valued at the lower of acquisition cost and net realizable value.
In the estimation of recoverable values, the purpose of the asset
to be measured and the movements of items of slow or scarce
rotation are taken into account. Inventories balance is not higher
than its net realizable value at the corresponding
dates.
2.3.11.
Cash
and cash equivalents
Cash is
deemed to include both cash fund and freely-available bank deposits
on demand. Short-term deposits are deemed to include short-term
investments with significant liquidity and free availability that,
subject to no previous notice or material cost, may be easily
converted into a specific cash amount that is known with a high
degree of certainty upon the acquisition, are subject to an
insignificant risk of changes in value, maturing up to three months
after the date of the related acquisitions, and whose main purpose
is not investment or any other similar purpose, but settling
short-term commitments.
For the
purpose of the consolidated statement of financial position and the
consolidated statement of cash flows, cash and cash equivalents
comprise cash at banks and on hand and short-term investments
meeting the abovementioned conditions.
2.3.12.
Provisions
Provisions are
recognized when the Group has a present obligation (legal or
constructive) as a result of a past event, it is probable that an
outflow of resources embodying economic benefits will be required
to settle the obligation and a reliable estimate can be made of the
amount of the obligation. Where the Group expects some or all of a
provision to be reimbursed, for example under an insurance
contract, the reimbursement is recognized as a separate asset but
only when the reimbursement is virtually certain. The expense
relating to any provision is presented in the statement of income
under the item that better reflects the nature of the provision net
of any reimbursement to the extent that the latter is virtually
certain.
If the
effect of the time value of money is material, provisions are
discounted using a current pre-tax market rate that reflects, where
appropriate, the risks specific to the liability. Where discounting
is used, the increase in the provision due to the passage of time
is recognized as a finance cost in the statement of
income.
-
Provision for
lawsuits and claims
In the
ordinary course of business, the Group is exposed to claims of
different natures (e.g., commercial, labor, tax, social security,
foreign exchange or customs claims) and other contingent situations
derived from the interpretation of current legislation, which
result in a loss, the materialization of which depends on whether
one more events occur or not. In assessing these situations,
Management uses its own judgment and advice of its legal counsel,
both internal and external, as well as the evidence available as of
the related dates. If the assessment of the contingency reveals the
likelihood of the materialization of a loss and the amount can be
reliably estimated, a provision for lawsuits and claims is recorded
as of the end of the reporting period.
2.3.13.
Contingent
liabilities
A
contingent liability is: (i) a possible obligation that arises from
past events and whose existence will be confirmed only by the
occurrence or non-occurrence of one or more uncertain future events
not wholly within
-34-
English translation of the consolidated financial statements
originally filed in Spanish with the Argentine Securities
Commission (“CNV”).
In case of discrepancy, the consolidated financial statements filed
with the CNV prevail over this translation
CENTRAL PUERTO S.A.
the
control of the entity; or (ii) a present obligation that arises
from past events but is not recognized because:
(a) it
is not probable that an outflow of resources embodying economic
benefits will be required to settle the obligation; or (2) the
amount of the obligation cannot be measured with sufficient
reliability.
A
contingent liability is not recognized in financial statements; it
is reported in notes, unless the possibility of an outflow of
resources to settle such liability is remote. For each type of
contingent liability as of the relevant reporting period-end dates,
the Group shall disclose (i) a brief description of the nature of
the obligation and, if possible, (ii) an estimate of its financial
impact; (iii) an indication of the uncertainties about the amount
or timing of those outflows; and (iv) the possibility of obtaining
potential reimbursements.
2.3.14.
Contingent
assets
A
contingent asset is a possible asset that arises from past events
and whose existence will be confirmed only by the occurrence or
non-occurrence of one or more uncertain future events not wholly
within the control of the Group.
A
contingent asset is not recognized in financial statements; it is
reported in notes only where an inflow of economic benefits is
probable. For each type of contingent asset as of the relevant
reporting period-end dates, the Group shall disclose (i) a brief
description of the nature thereof and, if possible, (ii) an
estimate of its financial impact.
2.3.15.
Employee
benefits
Employee short-term
benefits:
The
Group recognizes short-term benefits to employees, such as salary,
vacation pay, bonuses, among others, on an accrued basis and
includes the benefits arising from collective bargaining
agreements.
Post-employment
employee long-term benefits:
The
Group grants benefits to all trade-union employees when obtaining
the ordinary retirement benefit under the Argentine Integrated
Pension Fund System, based on multiples of the relevant
employees’ salaries.
The
amount recognized as a liability for such benefits includes the
present value of the liability at the end of the reporting period,
and it is determined through actuarial valuations using the
projected unit credit method.
Actuarial gains and
losses are fully recognized in other comprehensive income in the
period when they occur and immediately allocated to unappropriated
retained earnings (accumulated losses), and not reclassified to
income in subsequent periods.
The
Group recognizes the net amount of the following amounts as expense
or income in the statement of income for the reporting year: (a)
the cost of service for the current period; (b) the cost of
interest; (c) the past service cost, and (d) the effect of any
curtailment or settlement.
Other
long-term employee benefits:
The
Group grants seniority-based benefits to all trade-union employees
when reaching a specific seniority, based on their normal
salaries.
The
amount recognized as liabilities for other long-term benefits to
employees is the present value of the liability at the end of the
reporting period. The Group recognizes the net amount of the
following amounts as expense or income: (a) the cost of service for
the current period; (b) the cost of interest; (c) actuarial income
and loss, which shall be recognized immediately and in full; (d)
the past service cost, which shall be recognized immediately and in
full; and (e) the effect of any curtailment or
settlement.
-35-
English translation of the consolidated financial statements
originally filed in Spanish with the Argentine Securities
Commission (“CNV”).
In case of discrepancy, the consolidated financial statements filed
with the CNV prevail over this translation
CENTRAL PUERTO S.A.
2.3.16.
Share-based
payments
The
cost of share-based payments transactions that are settled with
equity instruments of one of our subsidiaries is determined by the
fair value at the date when the grant is made using an appropriate
valuation model.
This
cost is recognized in the consolidated financial statements under
employee benefits expense, together with a corresponding total
increase in non-controlling interest.
During
the years ended December 31, 2020 and 2019 the expense booked in
the consolidated financial statements under employee benefits
expense amounts to 1,673 and 66,106, respectively.
2.3.17.
Investment
in associates
The
Group’s investments in associates are accounted for using the
equity method. An associate is an entity over which the Group has
significant influence. Significant influence is the power to
participate in the financial and operating policy decisions of the
investee, but is neither control nor joint control.
According to the
equity method, investments in associates are originally booked in
the statement of financial position at cost, plus (less) the
changes in the Group’s ownership interests in the
associates’ net assets subsequent to the acquisition date. If
any, goodwill relating to the associate is included in the carrying
amount of the investment and is neither amortized nor individually
tested for impairment.
If the
cost of the investments is lower than the proportional share as of
the date of acquisition on the fair value of the associate’s
assets and liabilities, a gain is recognized in the period in which
the investment was acquired.
The
statement of income reflects the share of the results of operations
of the associates adjusted on the basis of the fair values
estimated as of the date on which the investment was incorporated.
When there has been a change recognized directly in the equity of
the associates, the Group recognizes its share of any changes and
includes them, when applicable, in the statement of changes in
equity.
The
Group’s share of profit of an associate is shown in a single
line on the main body of the consolidated statement of income. This
share of profit includes income or loss after taxes of the
associates.
The
financial information of the associates is prepared for the same
reporting period as the Group. When necessary, adjustments are made
to bring the accounting policies of the associates in line with
those of the Group.
After
application of the equity method, the Group determines whether it
is necessary to recognize impairment losses on its investment in
its associates. At each reporting date, the Group determines
whether there is objective evidence that the value of investment in
the associates has been impaired. If such was the case, the Group
calculates the amount of impairment as the difference between the
recoverable amount of the investment in the associates and its
carrying value, and recognizes the loss as “Share of losses
of an associate” in the statement of income.
Upon
loss of significant influence over the associate, the Group
measures and recognizes any retained investment at its fair value.
If such was the case, any difference between the carrying amounts
of the investment in the associate and the fair value on any
retained investment, as well as the disposal proceeds, are
recognized in the statement of income.
The
information related to associates is included in note 3 and Exhibit
C.
-36-
English translation of the consolidated financial statements
originally filed in Spanish with the Argentine Securities
Commission (“CNV”).
In case of discrepancy, the consolidated financial statements filed
with the CNV prevail over this translation
CENTRAL PUERTO S.A.
2.3.18.
Information
on operating segments
For
management purposes, the Group is organized in four different
business units to carry out its activities, as
follows:
-
Electric power
generation from conventional sources: the Group is engaged in the
production of electric power from conventional sources and its
sale.
-
Electric power
generation from renewable sources: the Group also is engaged in the
production of electric power from renewable sources and its
sale.
-
Natural gas
transport and distribution: through its equity investees companies
belonging to ECOGAS Group, the Group is engaged in the natural gas
distribution public sector service in the Cuyo and Centro regions
of Argentina and it is also engaged in the natural gas transport
sector service through its equity investee Company Transportadora
de Gas del Mecrosur S.A. Also, the Company resells certain gas
transport and distribution capacity that was previously contracted
by the Company.
-
Management and
operations of thermal plants: through its equity investees
Termoeléctrica José de San Martín S.A. and
Termoeléctrica Manuel Belgrano S.A. and its subsidiary Central
Vuelta de Obligado S.A. the Group is engaged in the management and
operations of these thermal plants.
The
Group has three reporting segments: production of electric power
from conventional sources, production of electric power from
renewable sources and natural gas transport and distribution.
Management and operations activities are included in others,
because the information is not material.
The
financial performance of segments is evaluated based on net income
and measured consistently with the net income disclosed in the
financial statements (Note 4).
2.3.19.
Non-current
assets held for sale and discontinued operations
The
Group classifies non-current assets and disposal groups as held for
sale if their carrying amounts will be recovered principally
through a sale transaction or its distribution to the shareholders
rather than through continuing use. Such assets are measured at the
lower of their carrying amount and fair value less costs to sell.
Costs to sell are the incremental costs directly attributable to
the disposal of an asset (disposal group), excluding finance costs
and income tax expense.
The
criteria for held for sale classification is regarded as met only
when the sale is highly probable and the asset or disposal group is
available for immediate sale in its present condition. Actions
required to complete the sale should indicate that it is unlikely
that significant changes to the sale will be made or that the
decision to sale will be withdrawn. Management must be committed to
the plan to sell the asset and the sale expected to be completed
within one year from the date of the classification.
Property, plant and
equipment and intangible assets are not depreciated or amortized
once classified as held for sale.
Assets
and liabilities classified as held for sale are presented
separately as current items in the consolidated statement of
financial position.
A
disposal group qualifies as discontinued operation if:
-
It is a component
of the Group that represents a cash generating unit or a group of
cash generating units,
-
it is classified as
held for sale or as for distribution to equity holders, or it has
already been disposed for distribution to the shareholders,
and;
-37-
English translation of the consolidated financial statements
originally filed in Spanish with the Argentine Securities
Commission (“CNV”).
In case of discrepancy, the consolidated financial statements filed
with the CNV prevail over this translation
CENTRAL PUERTO S.A.
-
it represents a
separate major line of business or geographical area of operations
or it is a subsidiary acquired exclusively with a view to
resale.
Discontinued
operations are excluded from the results of continuing operations
and are presented as a single amount as income or loss after tax
from discontinued operations in the consolidated statement of
income.
2.3.20.
Business
combinations
Business
combinations are accounted using the acquisition method when the
Group takes effective control of the acquired company.
The
Group will recognize in its financial statements the acquired
identifiable assets, the assumed liabilities, any non-controlling
interest and, if any, goodwill according to IFRS 3.
The
acquisition cost is measured as the addition of the transferred
consideration, measured at fair value on that date, and the amount
of any non-controlling interest in the acquiree. The Group will
measure the non- controlling interest in the acquiree at fair value
or at the proportional interest in the identifiable net assets of
the acquiree.
If the
business combination is made in stages, the Group will measure
again its previous holding at fair value at the acquisition date
and will recognize income or loss in the consolidated statement of
comprehensive income.
Goodwill is
measured at cost, as excess of the transferred consideration
regarding the acquired identifiable assets and the net assumed
liabilities of the Group. If this consideration is lower than the
fair value of the identifiable assets and of the assumed
liabilities, the difference is recognized in the consolidated
statement of comprehensive income.
As
described in Note 18.9, on June 14, 2019, the Company acquired the
Thermal Station Brigadier López (“the Station”)
and the real estate on which the Station is located. The fair value
of the identifiable assets and liabilities transferred at the date
of the acquisition, determined in accordance with IFRS 3, amounted
to 12,163,944.
The
business combination was accounted using the “acquisition
method” set forth in IFRS 3. As a result of the application
of such method, the Company considered that the consideration paid
was similar to the fair value of the assets and liabilities
acquired at the acquisition date. During fiscal year 2019, the
Company made the price allocation and the valuation at fair value
of the identifiable assets and the assumed liabilities based on an
independent assessment made by a specialist.
2.4.
Significant
accounting estimates and assumptions
The
preparation of the Group’s financial statements requires
management to make significant estimates and assumptions that
affect the recorded amounts of revenues, expenses, assets and
liabilities, and the disclosure of contingent liabilities, at the
end of the reporting period. In this sense, the uncertainties
related to the estimates and assumptions adopted could give rise in
the future to final results that could differ from those estimates
and require significant adjustments to the amounts of the assets
and liabilities affected.
The key
assumptions concerning the future and other key sources of
estimation uncertainty at the end of the reporting period, that
have a significant risk of causing a material adjustment to the
carrying amounts of assets and liabilities within the next
financial year, are described below. The Group based its accounting
assumptions and significant estimates on parameters available when
the financial statements were prepared. Existing circumstances and
assumptions about future developments, however, may change due to
market changes or
-38-
English translation of the consolidated financial statements
originally filed in Spanish with the Argentine Securities
Commission (“CNV”).
In case of discrepancy, the consolidated financial statements filed
with the CNV prevail over this translation
CENTRAL PUERTO S.A.
circumstances
arising beyond the control of the Group. Such changes are reflected
in the assumptions when they occur.
The terms for collection and the valuation of accumulated amounts
related to receivables under Resolution 95 and receivables under
Resolution 406 (from 2008 and thereafter).
Collection of the
principal and interest on these receivables is subject to various
business risks and uncertainties including, but not limited to,
regulatory changes that could impact the timing and amount of
collections, and economic conditions in Argentina. These
assumptions are reviewed at the end of each reporting period.
Actual future cash flows could differ from these
estimates.
Recoverability of property, plant and equipment and intangible
assets:
At each
closing date of the reported period, the Group evaluates if there
is any sign that the property, plant and equipment and/or
intangible assets with finite useful lives may have their value
impaired. Impairment exists when the book value of assets related
to the Cash Generating Unit (CGU) exceeds its recoverable value,
which is the higher between its fair value loss costs of sale of
such asset and value in use. The value in use is calculated through
the estimation of future cash flows discounted at their present
value through a discount rate that reflects the current assessments
of the market over the temporal value of money and the specific
risks of each CGU. Projection calculations cover a five-year
period. The recoverable value is sensitive to the used discount
rate, as well as the estimated inflows and the growth
rate.
The probability of occurrence and the amount of liabilities related
to lawsuits and claims:
The
Group based its estimates on the opinions of its legal counsel
available when the consolidated financial statements were prepared.
Existing circumstances and assumptions, however, may change due to
changes in circumstances arising beyond the control of the
Group.
Long-term employee benefit plan
The
plan costs are determined by actuarial valuations. Actuarial
valuations involve several assumptions that might differ from the
results that will actually occur in the future.
These
assumptions include the assessment of the discount rate, future
salary increases and mortality rates. Due to the complexity of the
valuation, the underlying assumptions and its long-term nature, the
benefit obligations are sensitive to changes in these assumptions.
These assumptions are reviewed at the end of each reporting
period.
2.5.
Changes
in accounting policies
New
standards and interpretations adopted
As from
the fiscal year beginning January 1, 2020, the Group has applied
for the first time certain new and/or amended standards and
interpretations as issued by the IASB.
Below
is a brief description of the new and/or amended standards and
interpretations adopted by the Group and their impact on these
consolidated financial statements.
Amendments
to IFRS 3: Definition of a business
In
October 2018, IASB issued amendments to the definition of a
business through IFRS 3 “Business combinations” to make
it easier for companies to decide whether activities and assets
they acquire are a business or not. The standard clarifies the
minimum requirements for the existence of a business, removes the
test on whether market participants can replace the missing
elements; it adds a guide to help companies
-39-
English translation of the consolidated financial statements
originally filed in Spanish with the Argentine Securities
Commission (“CNV”).
In case of discrepancy, the consolidated financial statements filed
with the CNV prevail over this translation
CENTRAL PUERTO S.A.
evaluate if an
acquired process is significant; it reduces the definitions of a
business and results, and it introduces an optional concentration
test of reasonable value. New examples were provided together with
the amendments.
Since
amendments are applied prospectively to the transactions or other
events that occur on the date of the first application or later,
the Group has not been affected by these amendments on the
transition date.
Amendments
to IAS 1 and to IAS 8: Definition of material
In
October 2018, IASB issued amendments to IAS 1 “Presentation
of Financial Statements” and to IAS 8 “Accounting
Policies, Changes in Accounting Estimates and Errors” to
align the definition of “material” through the
standards and to clarify certain aspects of the definition. The new
definition establishes that: “Information is material if
omitting, misstating or obscuring it could reasonably be expected
to influence decisions that the primary users of general purpose
financial statements make on the basis of those financial
statements, which provide financial information about a specific
reporting entity.”
The
amendment to the definition of material has not had a significant
impact on the consolidated financial statements of the
Group.
2.6.
IFRS
issued but not yet effective
The
following new and/or amended standards and interpretations have
been issued but were not effective as of the date of issuance of
these consolidated financial statements of the Group. In this
sense, only the new and/or amended standards and interpretations
that the Group expects to be applicable in the future are
indicated. In general, the Group intends to adopt these standards,
as applicable when they become effective.
Classification
of debts as current and non-current (amendment to IAS
1)
On
January 23, 2020, the IASB issued an amendment to IAS 1 -
Presentation of financial statements that affects the
classification of debts as current and non-current. The amendments
affect the requirements of IAS 1 for debt
presentations.
Specifically, it
clarifies the criteria for the classification of debt as
non-current. The application date of the amendment was fixed for
the periods commenced as from January 1, 2023, with retroactive
application. The Group is assessing the impact of these
modifications in the presentation of debts.
IAS
16 - Property, plant and equipment (“PP&E”) -
Proceeds before intended use
In May
2020, the IASB issued an amendment to IAS 16, which prohibits
entities from deducting from the cost of PP&E the proceeds from
the sale of elements produced while such asset is brought to
working conditions for its intended use. On the contrary, the
entity will recognize the proceeds for the sale of such items, as
their production costs, in the income for the period.
Such
amendment will enter into force for the annual periods commencing
as from January 1, 2022 and must be applied retrospectively to
PP&E items available for their use as from the commencement of
the first period presented when the Group applies the modification
for the first time.
These
amendments are not expected to have a significant impact on the
Group.
NIC
37: “Onerous contracts: Cost of fulfilling a
contract”
In May
2020, the IASB issued amendments to IAS 37 to specify which costs
an entity must include when assessing whether a contract is
onerous.
-40-
English translation of the consolidated financial statements
originally filed in Spanish with the Argentine Securities
Commission (“CNV”).
In case of discrepancy, the consolidated financial statements filed
with the CNV prevail over this translation
CENTRAL PUERTO S.A.
The
amendments clarify the meaning of “costs to fulfill a
contract”. Costs which are directly related to a contract of
goods or services supply include both the incremental costs and the
costs allocation directly related to the contract
activities.
Amendments are
effective for the annual periods commencing as from January 1,
2022.
These
modifications are not expected to have a significant impact on the
Group.
3.
Investment
in associates
The
book value of investment in associates as of December 31, 2020 and
2019 amounts to:
|
|
2020
|
|
2019
|
|
|
ARS 000
|
|
ARS 000
|
|
|
|
|
|
|
Termoeléctrica
José de San Martin S.A.
|
39,811
|
|
88,419
|
|
Termoeléctrica
Manuel Belgrano S.A.
|
27,070
|
|
95,075
|
|
ECOGAS
Group (Note 3.2)
|
4,482,447
|
|
4,383,459
|
|
Transportadora de
Gas del Mercosur S.A.
|
114,669
|
|
130,530
|
|
Others
|
8
|
|
142
|
|
|
4,664,005
|
|
4,697,625
|
The
share of the profit of associates for the years ended December 31,
2020 and 2019 amounts to:
|
|
2020
|
|
2019
|
|
|
ARS 000
|
|
ARS 000
|
|
|
|
|
|
|
Termoeléctrica
José de San Martin S.A.
|
26,343
|
|
62,538
|
|
Termoeléctrica
Manuel Belgrano S.A.
|
(719)
|
|
60,939
|
|
ECOGAS
Group (Note 3.2)
|
98,988
|
|
1,391,323
|
|
Transportadora de
Gas del Mercosur S.A.
|
(15,862)
|
|
(9,115)
|
|
Others
|
-
|
|
9,964
|
|
|
108,750
|
|
1,515,649
|
3.1.
TSM and TMB
The
Group has an interest in TSM and TMB, which are engaged in managing
the purchase of equipment, and building, operating and maintaining
the power plants. TSM and TMB are private, unlisted
companies.
After
termination of the supply agreements with TSM and TMB dated
February 2, 2020 and January 7, 2020, respectively, trust
agreements also terminated. As from those dates, a 90-day period
commenced in which TSM and TMB and their shareholders had to
perform all the company acts necessary to allow the Argentine
Government to receive the corresponding shares in the capital of
TSM and TMB that their contributions give them rights
to.
On
January 3, 2020, i.e. before the aforementioned 90-day period
commenced, the Argentine Government (through the Ministry of
Productive Development) served notice to the Company (together with
TSM, TMB and their other shareholders and BICE, among others)
stating that, according to the Final Agreement for the Re-
adaptation of WEM, TSM and TMB shall perform the necessary acts to
incorporate the Argentine Government as shareholder of both
companies, acknowledging the same equity interest rights: 65.006%
in TMB and 68.826% in TSM.
-41-
English translation of the consolidated financial statements
originally filed in Spanish with the Argentine Securities
Commission (“CNV”).
In case of discrepancy, the consolidated financial statements filed
with the CNV prevail over this translation
CENTRAL PUERTO S.A.
On
January 9, 2020, the Company, together with the other generation
shareholders of TSM and TMB, rejected such act understanding that
the equity interest the Government claims does not correspond with
the contributions made for the construction of power stations and
that gave it right to claim such equity interest.
On
March 4, 2020, the Company was notified on two notes sent by the
Minister of Productive Development whereby he answered the one sent
by the Company on January 9, 2020 - mentioned above -, ratifying
the terms of the note notified to the Company on January 3, 2020.
In March 2020, the Company raised a reconsideration motion, with
higher supplementary appeal, against the Argentine
Government’s order for the acts mentioned above.
On May
4 and 8, 2020, the Company attended the Special Shareholder’s
Meetings of TMB and TSM, respectively, in which the admission of
the Argentine Government as shareholder of TSM and TMB was allowed,
in accordance with the shareholding interest claimed by the
Argentine Government. This with the sole purpose of complying with
the condition precedent established in the respective Trust
Agreements, which stated that for the trusted equity -comprised,
among others, by the power plants- to be transferred to the
companies TSM and TMB as trustees of the trusts in a 90-day term
counted as from the end of the supply agreements, such companies
and their shareholders (among which the Company is included) had to
allow the entrance of the Argentine Government in TSM and TMB,
receiving the same amount of shares representing the contributions
made by the Argentine Government for the construction and giving it
the right to claim such interest.
In both
cases, when the mentioned Shareholders’ Meetings were held,
through which the Argentine Government was allowed as shareholder
of TMB and TSM due to its interest claim, the Company made the
corresponding reservation of rights so as to continue the
abovementioned claims already commenced.
On
November 19, 2020, BICE (in its capacity as trustee of both trust
agreements) had the condition precedent established in the Trust
Agreements fulfilled since the necessary corporate acts for the
Argentine Government to be allowed as shareholder of TSM and TMB
were performed. Moreover, on March 11, 2021, the Secretariat of
Energy notified TSM and TMB it accepts subscribing, on behalf of
the Argentine Government, the corresponding shareholders for its
interest in such companies.
On the
other hand, the Company, together with the other shareholders of
TSM and TMB (as guarantor within the framework and the limits
stated by the Final Agreement for the Re-adaptation of WEM, Note SE
no. 1368/05 and trust agreements), BICE, TSM, TMB and SE signed: a)
on January 7, 2020 an amendment addenda of the Operation and
Maintenance (“OMA”) of Thermal Manuel Belgrano and b)
on January 9, 2020 an amendment addenda of the Operation and
Maintenance Agreement (“OMA”) of Thermal San
Martín, for which the validity of TMB and TSM OMA was extended
until the effective transference of the trust’s liquidation
equity.
The
values recorded in these financial statements of the investments of
TMB and TSM are detailed in Exhibit C. During the years ended
December 31, 2020 and 2019, the Company received cash dividends
from TMB and TSM for 140,984 and 159,594,
respectively.
3.2.
Investments
in gas distribution
The
Group holds ownership interests of 42.31% in Inversora de Gas del
Centro S.A. (“IGCE”, the controlling company of
Distribuidora de Gas del Centro S.A. “DGCE” and
Distribuidora de Gas Cuyana S.A. “DGCU”) and 17.20% in
DGCE (from now on, “ECOGAS Group”). Consequently, the
Group holds, both directly and indirectly, a 40.59% of the capital
stock of DGCE, and, indirectly, a 21.58% interest in DGCU, both of
which are engaged in the distribution of natural gas. The Company
does not control such companies.
IGCE is
a private, unlisted company which holds a 55.29% equity interest in
DGCE, a company engaged in the distribution of natural gas in the
provinces of Cordoba, La Rioja and Catamarca, Argentine, and a
51%
-42-
English translation of the consolidated financial statements
originally filed in Spanish with the Argentine Securities
Commission (“CNV”).
In case of discrepancy, the consolidated financial statements filed
with the CNV prevail over this translation
CENTRAL PUERTO S.A.
equity
interest in DGCU, a company engaged in the distribution of natural
gas in the provinces of Mendoza, San Juan and San
Luis.
During
September 2019, the Group received dividends of 379,653 from ECOGAS
Group. On October 31, 2019 the Group received dividends of 454,237
from ECOGAS Group.
3.3.
Transportadora
de Gas del Mercosur S.A.
The
Group has a 20% interest in Transportadora de Gas del Mercosur S.A.
(“TGM”). This Company has a gas pipeline that covers
the area from Aldea Brasilera (in the Province of Entre Ríos)
to Paso de los Libres (in the Province of Corrientes). In 2009, TGM
terminated its contract with YPF, which was its only client to
date, on the grounds of consecutive non-compliances. On December
22, 2017, YPF agreed to pay TGM USD 114,000,000 as full and final
settlement to cover all the complaints TGM claims against YPF. TGM
is a private unlisted company.
4.
Operating
segments
The
following provides summarized information of the operating segments
for the years ended December 31, 2020 and 2019:
-43-
English translation of the consolidated financial statements
originally filed in Spanish with the Argentine Securities
Commission (“CNV”).
In case of discrepancy, the consolidated financial statements filed
with the CNV prevail over this translation
CENTRAL PUERTO S.A.
|
2020
|
Electric
Power Generation from conventional sources
|
Electric
Power Generation from renewable sources
|
Natural
Gas Transport and Distribution (1)
(2)
|
Others
(1)
|
Adjustments
and Eliminations
|
Total
|
|
|
ARS
000
|
ARS
000
|
ARS
000
|
ARS
000
|
ARS
000
|
ARS
000
|
|
|
|
|
|
|
|
|
|
Revenues
|
29,730,812
|
7,203,510
|
28,798,655
|
1,763,992
|
(29,388,809)
|
38,108,160
|
|
Cost of
sales
|
(14,200,480)
|
(1,885,064)
|
(23,560,823)
|
(1,429,153)
|
24,260,116
|
(16,815,404)
|
|
Administrative and
selling expenses
|
(2,555,522)
|
(417,081)
|
(6,284,509)
|
-
|
6,284,509
|
(2,972,603)
|
|
Other operating
income
|
13,661,591
|
436,904
|
797,927
|
844
|
(798,771)
|
14,098,495
|
|
Other operating
expenses
|
(322,577)
|
(129,459)
|
(214,812)
|
(5,048)
|
214,812
|
(457,084)
|
|
Impairment of
property, plant and equipment and intangible assets
|
(4,016,305)
|
-
|
-
|
-
|
-
|
(4,016,305)
|
|
|
|
|
|
|
|
|
|
Operating
income
|
22,297,519
|
5,208,810
|
(463,562)
|
330,635
|
571,857
|
27,945,259
|
|
|
|
|
|
|
|
|
|
Other (expenses)
income
|
(16,287,978)
|
(4,655,845)
|
(104,237)
|
(50,581)
|
111,320
|
(20,987,321)
|
|
|
|
|
|
|
|
|
|
Net income for the
segment
|
6,009,541
|
552,965
|
(567,799)
|
280,054
|
683,177
|
6,957,938
|
|
Share
in the net income for the segment
|
6,009,541
|
552,965
|
174,831
|
220,601
|
-
|
6,957,938
|
|
2019
|
Electric
Power Generation from conventional sources
|
Electric
Power Generation from renewable sources
|
Natural
Gas Transport and Distribution (1)
(2)
|
Others
(1)
|
Adjustments
and Eliminations
|
Total
|
|
|
ARS
000
|
ARS
000
|
ARS
000
|
ARS
000
|
ARS
000
|
ARS
000
|
|
|
|
|
|
|
|
|
|
Revenues
|
43,726,292
|
4,146,543
|
40,876,013
|
2,279,019
|
(42,070,644)
|
48,957,223
|
|
Cost of
sales
|
(24,012,251)
|
(991,146)
|
(30,409,302)
|
(1,484,828)
|
31,089,800
|
(25,807,727)
|
|
Administrative and
selling expenses
|
(3,217,730)
|
(367,403)
|
(5,344,536)
|
-
|
5,344,536
|
(3,585,133)
|
|
Other operating
income
|
24,841,568
|
115,077
|
1,561,636
|
29,515
|
(1,561,636)
|
24,986,160
|
|
Other operating
expenses
|
(18,619)
|
(345,035)
|
(51,408)
|
(4,953)
|
51,409
|
(368,606)
|
|
Impairment of
property, plant and equipment and intangible assets
|
(5,996,233)
|
-
|
-
|
-
|
-
|
(5,996,233)
|
|
|
|
|
|
|
|
|
|
Operating
income
|
35,323,027
|
2,558,036
|
6,632,403
|
818,753
|
(7,146,535)
|
38,185,684
|
|
|
|
|
|
|
|
|
|
Other (expenses)
income
|
(24,098,436)
|
(3,752,595)
|
(2,639,712)
|
(220,440)
|
4,316,439
|
(26,394,744)
|
|
|
|
|
|
|
|
|
|
Net income for the
segment
|
11,224,591
|
(1,194,559)
|
3,992,691
|
598,313
|
(2,830,096)
|
11,790,940
|
|
Share
in the net income for the segment
|
11,224,590
|
(1,194,559)
|
1,425,682
|
335,227
|
-
|
11,790,940
|
(1)
Includes
information from associates.
(2)
Includes income
(expenses) related to resale of gas transport and distribution
capacity.
-44-
English translation of the consolidated financial statements
originally filed in Spanish with the Argentine Securities
Commission (“CNV”).
In case of discrepancy, the consolidated financial statements filed
with the CNV prevail over this translation
CENTRAL PUERTO S.A.
Major
customers
During
the years ended December 31, 2020 and 2019 revenues from CAMMESA
amounted to 94% and 96%, respectively, from total Group
revenues.
5.
Revenues
|
|
2020
|
|
2019
|
|
|
ARS 000
|
|
ARS 000
|
|
|
|
|
|
|
Revenues from
Resolution 1, SEE 19, SGE Resolution 70/2018, and
amendments
|
17,473,763
|
|
37,273,808
|
|
Sales
under contracts
|
18,395,788
|
|
10,007,294
|
|
Steam
sales
|
1,064,771
|
|
591,732
|
|
Resale
of gas transport and distribution capacity
|
394,841
|
|
389,746
|
|
Revenues from CVO
thermal plant management
|
778,997
|
|
694,643
|
|
|
38,108,160
|
|
48,957,223
|
6.
Other
income and expenses
6.1.
Other
operating income
|
|
2020
|
|
2019
|
|
|
ARS 000
|
|
ARS 000
|
|
|
|
|
|
|
Interest earned
from customers
|
3,107,561
(1)
|
|
8,760,658
(1)
|
|
Foreign
exchange difference, net
|
10,952,248
(2)
|
|
16,217,459
(2)
|
|
Others
|
38,686
|
|
8,043
|
|
|
14,098,495
|
|
24,986,160
|
(1)
Includes 603 and
32,246 related to receivables under FONINVEMEM I and II Agreements
for the years ended December 31, 2020 and 2019, respectively. It
also includes 1,609,116 and 3,302,470 related to CVO receivables
for the years ended December 31, 2020 and 2019,
respectively.
(2)
Includes 20,328 and
613,376 related to receivables under FONINVEMEM I and II Agreements
for the years ended December 31, 2020 and 2019, respectively. It
also includes 10,186,305 and 14.669,903 related to CVO receivables
for the years ended December 31, 2020 and 2019.
6.2.
Other
operating expenses
|
|
2020
|
|
2019
|
|
|
ARS 000
|
|
ARS 000
|
|
|
|
|
|
|
Net
charge related to the provision for lawsuits and claims (Exhibit
E)
|
(8,373)
|
|
(7,191)
|
|
Material and spare
parts impairment (Exhibit E)
|
(42,935)
|
|
(42,977)
|
|
Net
charge related to the allowance for doubtful accounts (Exhibit
E)
|
(2,458)
|
|
(13,161)
|
|
Charge
related to discount tax credits
|
(30,194)
|
|
(304,798)
|
|
Interests
|
(373,124)
|
|
-
|
|
Others
|
-
|
|
(479)
|
|
|
(457,084)
|
|
(368,606)
|
-45-
English translation of the consolidated financial statements
originally filed in Spanish with the Argentine Securities
Commission (“CNV”).
In case of discrepancy, the consolidated financial statements filed
with the CNV prevail over this translation
CENTRAL PUERTO S.A.
6.3.
Finance
income
|
|
2020
|
|
2019
|
|
|
ARS 000
|
|
ARS 000
|
|
|
|
|
|
|
Interest
earned
|
128,688
|
|
40,138
|
|
Net
income on financial assets at fair value through profit or loss
(1)
|
5,031,107
|
|
4,861,886
|
|
|
5,159,795
|
|
4,902,024
|
(1)
Net of 24,325 and
130,743 corresponding to turnover tax for the years ended December
31, 2020 and 2019, respectively.
6.4.
Finance
expenses
|
|
2020
|
|
2019
|
|
|
ARS 000
|
|
ARS 000
|
|
|
|
|
|
|
Interest on loans
and borrowings from CAMMESA
|
(3,643,087)
|
|
(4,371,775)
|
|
Foreign
exchange differences
|
(17,318,661)
|
|
(16,376,119)
|
|
Bank
commissions for loans and others
|
(519,079)
|
|
(218,007)
|
|
Others
|
(816,310)
|
|
(714,307)
|
|
|
(22,297,137)
|
|
(21,680,208)
|
7.
Income
tax
The
major components of income tax during the years ended December 31,
2020 and 2019, are the following:
Consolidated
statements of income and comprehensive income
Consolidated
statement of income
|
|
2020
|
|
2019
|
|
|
ARS 000
|
|
ARS 000
|
|
|
|
|
|
|
Current
income tax
|
|
|
|
|
Income
tax charge for the year
|
(4,830,128)
|
|
(9,469,106)
|
|
Adjustment related
to current income tax for the prior year
|
20,789
|
|
37,983
|
|
|
|
|
|
|
Deferred
income tax
|
|
|
|
|
Related
to the net variation in temporary differences
|
(308,636)
|
|
1,609,517
|
|
Income
tax
|
(5,117,975)
|
|
(7,821,606)
|
Consolidated
statement of comprehensive income
|
|
2020
|
|
2019
|
|
|
ARS 000
|
|
ARS 000
|
|
|
|
|
|
|
Income
tax for the year related to items charged or credited directly to
other comprehensive income
|
|
|
|
|
Deferred income
tax
|
(1,967)
|
|
15,742
|
|
Income
tax charged to other comprehensive income
|
(1,967)
|
|
15,742
|
-46-
English translation of the consolidated financial statements
originally filed in Spanish with the Argentine Securities
Commission (“CNV”).
In case of discrepancy, the consolidated financial statements filed
with the CNV prevail over this translation
CENTRAL PUERTO S.A.
The
reconciliation between income tax in the consolidated statement of
income and the accounting income multiplied by the statutory income
tax rate for the years ended December 31, 2020 and 2019, is as
follows:
|
|
2020
|
|
2019
|
|
|
ARS 000
|
|
ARS 000
|
|
|
|
|
|
|
Income
before income tax
|
12,075,913
|
|
19,612,546
|
|
|
|
|
|
|
At
statutory income tax rate of 30%
|
(3,622,774)
|
|
(5,883,765)
|
|
Share
of the profit of associates
|
(6,706)
|
|
238,468
|
|
Adjustment related
to current income tax for the prior year
|
20,789
|
|
37,983
|
|
Effect
related to statutory income tax rate change (1)
|
631,781
|
|
111,766
|
|
IFRIC
23 effect
|
19,783
|
|
86,791
|
|
Effect
related to the discount of income tax payable
|
197,621
|
|
(762,741)
|
|
Loss on
net monetary position
|
(2,496,932)
|
|
(1,252,741)
|
|
Business
combination tax effects
|
-
|
|
(265,426)
|
|
Others
|
138,463
|
|
(131,941)
|
|
Income
tax for the year
|
(5,117,975)
|
|
(7,821,606)
|
(1)
Effect of applying
the changes in the statutory income tax rate established by Law
27,430 as described in Note 19 to the deferred assets and
liabilities, according to its expected term of realization and
settlement, respectively.
Deferred
income tax
Deferred income tax
relates to the following:
|
|
Consolidated statement of financial position
|
|
Consolidated statement of income and statement of other
comprehensive income
|
||||
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
ARS 000
|
|
ARS 000
|
|
ARS 000
|
|
ARS 000
|
|
|
|
|
|
|
|
|
|
|
Trade
receivables
|
3,239
|
|
4,886
|
|
(1,647)
|
|
3,531
|
|
Other
financial assets
|
(391)
|
|
(374,950)
|
|
374,559
|
|
(69,139)
|
|
Employee benefit
liability
|
110,005
|
|
108,942
|
|
1,063
|
|
17,923
|
|
Provisions and
others
|
(293,024)
|
|
62,041
|
|
(355,065)
|
|
38,955
|
|
Investments in
associates
|
(1,081,467)
|
|
(1,042,573)
|
|
(38,894)
|
|
(168,046)
|
|
Property, plant and
equipment - Material & spare parts - Intangible
assets
|
(5,381,990)
|
|
(6,228,344)
|
|
846,354
|
|
1,064,535
|
|
Deferred tax
income
|
(2,633,929)
|
|
(2,867,158)
|
|
233,229
|
|
947,039
|
|
Tax
loss carry-forward
|
2,401,868
|
|
2,251,545
|
|
150,323
|
|
295,767
|
|
Tax
inflation adjustment - Asset
|
186,962
|
|
611,466
|
|
(424,504)
|
|
611,466
|
|
Tax
inflation adjustment - Liability
|
(2,212,793)
|
|
(1,116,772)
|
|
(1,096,021)
|
|
(1,116,772)
|
|
Deferred
income tax (expense) income
|
|
|
|
|
(310,603)
|
|
1,625,259
|
|
Deferred
income tax liabilities, net
|
(8,901,520)
|
|
(8,590,917)
|
|
|
|
|
-47-
English translation of the consolidated financial statements
originally filed in Spanish with the Argentine Securities
Commission (“CNV”).
In case of discrepancy, the consolidated financial statements filed
with the CNV prevail over this translation
CENTRAL PUERTO S.A.
As of
December 31, 2020, the Group holds deferred assets from tax loss
carry-forward in its subsidiaries for 2,401,868 that can be
utilized against future taxable profit from such entities as
described below:
|
|
Expiration year
|
|
|
||||||||
|
|
2021
|
|
2022
|
|
2023
|
|
2024
|
|
2025
|
|
Total
|
|
|
ARS 000
|
|
ARS 000
|
|
ARS 000
|
|
ARS 000
|
|
ARS 000
|
|
ARS 000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CP
Achiras S.A.U.
|
146
|
|
9,932
|
|
280,241
|
|
148,430
|
|
42,753
|
|
481,502
|
|
CP La
Castellana S.A.U.
|
313
|
|
22,742
|
|
576,312
|
|
261,217
|
|
15,029
|
|
875,613
|
|
CPR
Energy Solutions S.A.U.
|
-
|
|
4
|
|
1,153
|
|
61,618
|
|
9,707
|
|
72,482
|
|
CP
Manque S.A.U.
|
-
|
|
-
|
|
-
|
|
69,620
|
|
177,671
|
|
247,291
|
|
CP Los
Olivos S.A.U.
|
-
|
|
-
|
|
-
|
|
3,220
|
|
39,564
|
|
42,784
|
|
Vientos
La Genoveva I S.A.U.
|
-
|
|
-
|
|
1,734
|
|
45,201
|
|
390,850
|
|
437,785
|
|
Vientos
La Genoveva II S.A.U.
|
-
|
|
-
|
|
49,888
|
|
156,775
|
|
53
|
|
206,716
|
|
CP
Renovables S.A.
|
-
|
|
-
|
|
-
|
|
-
|
|
34,942
|
|
34,942
|
|
Proener S.A.U.
|
14
|
|
24
|
|
57
|
|
120
|
|
2,538
|
|
2,753
|
|
|
473
|
|
32,702
|
|
909,385
|
|
746,201
|
|
713,107
|
|
2,401,868
|
8.
Earnings
per share
Earnings per share
amounts are calculated by dividing net income for the year
attributable to equity holders of the parent by the weighted
average number of ordinary shares during the year, net number of
treasury shares.
There
are no transactions or items generating an effect of
dilution.
The
following reflects information on income and the number of shares
used in the earnings per share computations:
|
|
2020
|
|
2019
|
|
|
ARS 000
|
|
ARS 000
|
|
|
|
|
|
|
Net income attributable to equity holders of the
parent
|
6,891,921
|
|
11,992,373
|
|
|
|
|
|
|
Weighted
average number of ordinary shares
|
1,505,170,408
|
|
1,505,170,408
|
There
have been no transactions involving ordinary shares or potential
ordinary shares between the reporting date and the date of issuance
of these consolidated financial statements that may produce a
dilution effect.
9.
Inventories
|
|
2020
|
|
2019
|
|
|
ARS 000
|
|
ARS 000
|
|
|
|
|
|
|
Non-current:
|
|
|
|
|
Materials and spare
parts
|
824,700
|
|
364,605
|
|
Provision for
impairment in value - Exhibit E
|
(166,579)
|
|
(168,330)
|
|
|
658,121
|
|
196,275
|
|
|
|
|
|
|
Current:
|
|
|
|
|
Materials and spare
parts
|
783,889
|
|
882,658
|
|
Fuel
oil
|
7,461
|
|
10,157
|
|
Diesel
oil
|
12,876
|
|
2,437
|
|
|
804,226
|
|
895,252
|
-48-
English translation of the consolidated financial statements
originally filed in Spanish with the Argentine Securities
Commission (“CNV”).
In case of discrepancy, the consolidated financial statements filed
with the CNV prevail over this translation
CENTRAL PUERTO S.A.
10.
Financial
assets and liabilities
10.1.
Trade
and other receivables
|
|
2020
|
|
2019
|
|
|
ARS 000
|
|
ARS 000
|
|
|
|
|
|
|
Non-current:
|
|
|
|
|
Trade
receivables - CAMMESA
|
29,218,290
|
|
33,012,869
|
|
Receivables
from shareholders
|
181,718
|
|
-
|
|
Guarantee
deposits
|
43
|
|
58
|
|
|
29,400,051
|
|
33,012,927
|
|
|
|
|
|
|
Current:
|
|
|
|
|
Trade
receivables - CAMMESA
|
14,022,779
|
|
18,784,168
|
|
Trade
receivables - YPF SA and YPF Energía Eléctrica
SA
|
264,649
|
|
430,468
|
|
Trade
receivables - Large users
|
1,172,671
|
|
543,647
|
|
Receivables
from associates and other related parties
|
48
|
|
1,111
|
|
Other
receivables
|
3,288,809
|
|
1,551,366
|
|
|
18,748,956
|
|
21,310,760
|
|
|
|
|
|
|
Allowance
for doubtful accounts - Exhibit E
|
(13,867)
|
|
(17,083)
|
|
|
18,735,089
|
|
21,293,677
|
For the
terms and conditions of receivables from related parties, refer to
Note 16.
Trade
receivables from CAMMESA accrue interest, once they become due. The
Group accrues interest on receivables from CAMMESA according to the
nature of the receivables, as follows:
FONINVEMEN I and II: The Company accrues
interests according to the explicit rate agreed in the
corresponding agreements for the passage of time.
CVO receivables: The Company accrues
interests since the Commercial Approval date and according to the
rate agreed in the CVO agreement, as described in Note
1.2.a).
Trade
receivables related to YPF and large users accrue interest as
stipulated in each individual agreement. The average collection
term is generally from 30 to 90 days.
FONINVEMEM I and II: The receivables
under FONINVEMEM I and II Agreements are included under
“Trade receivables - CAMMESA”. Such receivables are
collected in 120 equal, consecutive monthly installments beginning
in February and January 2010, when Thermal Jose de San Martin and
Thermal Manuel Belgrano plants, commenced operations, respectively.
Since those dates, CAMMESA has made all payments of principal and
interest in accordance with the above-mentioned contractual
agreements.
During
the years ended December 31, 2020 and 2019 collections of these
receivables amounted to 335,306 and 1.533,109,
respectively.
As
mentioned in Note 1.2.a), during January and February 2020 we
collected the last installments from the total 120 installments
that were established by TMB and TSM agreements,
respectively.
CVO
receivables
As
described in Note 1.2.a), in 2010 the Company approved a new
agreement with the former Energy
-49-
English translation of the consolidated financial statements
originally filed in Spanish with the Argentine Securities
Commission (“CNV”).
In case of discrepancy, the consolidated financial statements filed
with the CNV prevail over this translation
CENTRAL PUERTO S.A.
Secretariat (the
“CVO agreement”) and as from March 20, 2018, CAMMESA
granted the commercial operations as a combined cycle of Central
Vuelta de Obligado thermal power plant (the “Commercial
Approval”).
Receivables under
CVO agreement are disclosed under “Trade receivables -
CAMMESA”. CVO receivables are expressed in USD and they
accrue LIBOR interest at a 5% rate.
As a
consequence of the Commercial Approval and in accordance with the
CVO agreement, the Company collects the CVO receivables converted
in US dollars in 120 equal and consecutive
installments.
During
the years ended December 31, 2020 and 2019, collections of CVO
receivables amounted to 6,298,451 and 11,498,992,
respectively.
The
information on the Group’s objectives and credit risk
management policies is included in Note 17.
The
breakdown by due date of trade and other receivables due as of the
related dates is as follows:
|
|
|
|
|
|
Past
due
|
||||||||
|
|
Total
|
|
To due
|
|
90
days
|
|
90-180
days
|
|
180-270
days
|
|
270-360
days
|
|
More than 360 days
|
|
|
ARS 000
|
|
ARS 000
|
|
ARS 000
|
|
ARS 000
|
|
ARS 000
|
|
ARS 000
|
|
ARS 000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31-12-20
|
48,149,007
|
|
45,113,817
|
|
3,008,214
|
|
2,343
|
|
12,653
|
|
27
|
|
11,953
|
10.2.
Trade
and other payables
|
|
2020
|
|
2019
|
|
|
ARS 000
|
|
ARS 000
|
|
Current:
|
|
|
|
|
Trade
and other payables
|
2,398,457
|
|
7,572,934
|
|
Insurance
payable
|
118,828
|
|
431,375
|
|
Payables
to associates and other related parties
|
28,207
|
|
27,220
|
|
|
2,545,492
|
|
8,031,529
|
Trade
payables are non-interest bearing and are normally settled on
60-day terms.
The
information on the Group’s objectives and financial risk
management policies is included in Note 17.
For the
terms and conditions of payables to related parties, refer to Note
16.
10.3.
Loans
and borrowings
|
|
2020
|
|
2019
|
|
|
ARS 000
|
|
ARS 000
|
|
Non-current
|
|
|
|
|
|
|
|
|
|
Long-term loans for
project financing (Notes 10.3.1, 10.3.2, 10.3.3, 10.3.4, 10.3.5,
10.3.6 and 10.3.8)
|
26,955,655
|
|
41,371,875
|
|
Corporate bonds
(Note 10.3.9)
|
2,946,996
|
|
-
|
|
Derivative
financial liabilities not designated as hedging instrument -
Interest rate swap
|
942,216
|
|
405,964
|
|
|
30,844,867
|
|
41,777,839
|
-50-
English translation of the consolidated financial statements
originally filed in Spanish with the Argentine Securities
Commission (“CNV”).
In case of discrepancy, the consolidated financial statements filed
with the CNV prevail over this translation
CENTRAL PUERTO S.A.
|
|
2020
|
|
2019
|
|
|
ARS 000
|
|
ARS 000
|
|
Current
|
|
|
|
|
|
|
|
|
|
Long-term loans for
project financing (Notes 10.3.1,10.3.2, 10.3.3, 10.3.4, 10.3.5,
10.3.6 and 10.3.8)
|
17,676,024
|
|
8,906,268
|
|
Corporate bonds
(Note 10.3.9)
|
1,126,579
|
|
-
|
|
Derivative
financial liabilities not designated as hedging instrument - Stock
options
|
288,975
|
|
-
|
|
Short-term loans -
Banco Macro S.A. (Note 10.3.7)
|
-
|
|
1,521,951
|
|
Bank
and investment accounts overdrafts
|
1,032,883
|
|
498,278
|
|
|
20,124,461
|
|
10,926,497
|
10.3.1.
Loans
from the IIC-IFC Facility
On
October 20, 2017 and January 17, 2018, CP La Castellana S.A.U. and
CP Achiras S.A.U. (both of which are subsidiaries of CPR),
respectively, agreed on the structuring of a series of loan
agreements in favor of CP La Castellana S.A.U. and CP Achiras
S.A.U., for a total amount of USD 100,050,000 and USD 50,700,000,
respectively, with: (i) International Finance Corporation (IFC) on
its own behalf, as Eligible Hedge Provider and as an implementation
entity of the Intercreditor Agreement Managed Program; (ii)
Inter-American Investment Corporation (“IIC”), as
lender on its behalf, acting as agent for the Inter-American
Development Bank (“IDB”) and on behalf of IDB as
administrator of the Canadian Climate Fund for the Private Sector
in the Americas (“C2F”, and together with IIC and IDB,
“Group IDB”, and together with IFC, “Senior
Creditors”).
As of
the date of these financial statements, the loans disbursements
have been fully received by the Group.
In
accordance with the terms of the agreement subscribed by CP La
Castellana, USD 5 million accrue an interest rate equal to LIBOR
plus 3.5%, and the rest at LIBOR plus 5.25% and the loan is
amortizable quarterly in 52 equal and consecutive installments as
from February 15, 2019.
In
accordance with the terms of the agreement subscribed by CP
Achiras, USD 40.7 million accrue a fixed interest rate equal to
8.05%, and the rest accrue a 6.77% fixed interest rate. The loan is
amortizable quarterly in 52 equal and consecutive installments as
from May 15, 2019.
Other
related agreements and documents, such as the Guarantee and Sponsor
Support Agreement (the “Guarantee Agreement” by which
CPSA completely, unconditionally and irrevocably guarantees, as the
main debtor, all payment obligations undertaken by CP La Castellana
and CP Achiras until the projects reach the commercial operations
date) hedging agreements, guarantee trusts, a mortgage, guarantee
agreements on shares, guarantee agreements on wind turbines, direct
agreements and promissory notes have been signed.
Pursuant to the
Guarantee and Sponsor Support Agreement, among other customary
covenants for this type of facilities, we committed, until each
project completion date, to maintain (i) a leverage ratio of (a)
until (and including) December 31, 2018, not more than 4.00:1.00;
and (b) thereafter, not more than 3.5:1.00; and (ii) an interest
coverage ratio of not less than 2.00:1.00. In addition, our
subsidiary, CPR, and we, upon certain conditions, agreed to make
certain equity contributions to CP La Castellana and CP
Achiras.
As of
December 31, 2020, the Group has met the requirements described in
(i) and (ii) above.
We also
agreed to maintain, unless otherwise consented to in writing by
each senior lender, ownership and control of the CP La Castellana
and CP Achiras as follows: (i) until each project completion date,
(a) we shall maintain (x) directly or indirectly, at least seventy
percent (70%) beneficial ownership of CP La Castellana and CP
Achiras; and (y) control of the CP La Castellana and CP Achiras;
and (b) CP Renovables shall maintain
-51-
English translation of the consolidated financial statements
originally filed in Spanish with the Argentine Securities
Commission (“CNV”).
In case of discrepancy, the consolidated financial statements filed
with the CNV prevail over this translation
CENTRAL PUERTO S.A.
(x)
directly, ninety-five percent (95%) beneficial ownership of CP La
Castellana and CP Achiras; and (y) control of CP La Castellana and
CP Achiras. In addition, (ii) after each project completion date,
(a) we shall maintain
(x)
directly or indirectly, at least fifty and one tenth percent
(50.1%) beneficial ownership of each of CP La Castellana, CP
Achiras and CP Renovables; and (y) control of each of CP La
Castellana, CP Achiras and CP Renovables; and (b) CP Renovables
shall maintain control of CP La Castellana and CP Achiras. As of
December 31, 2020, the Group has met such obligations.
Under
the subscribed trust guarantee agreement, as at December 31, 2020
and 2019, there are commercial liabilities with specific assignment
for the amount of 2,791,980 and 787,866, respectively.
As of
December 31, 2020 and 2019, the balance of these loans amounts to
10,674,261 and 11,400,435, respectively.
10.3.2.
Borrowing
from Kreditanstalt für Wiederaufbau
(“KfW”)
On
March 26, 2019 the Company entered into a loan agreement with KfW
for an amount of USD 56 million in relation to the acquisition of
two gas turbines, equipment and related services relating to the
Luján de Cuyo project described in Note 18.7.
In
accordance with the terms of the agreement, the loan accrues an
interest equal to LIBOR plus 1.15% and it is amortizable quarterly
in 47 equal and consecutive installments as from the day falling
six months after the commissioning of the gas turbines and
equipment.
Pursuant to the
loan agreement, among other obligations, CPSA has agreed to
maintain a debt ratio of (a) as at December 31, 2020 of no more
than 4.00:1.00 and (b) as from that date, no more than 3.5:1.00. As
at December 31, 2020, the Company has complied with that
requirement.
During
2019 the disbursements for this loan were fully received for a
total amount of USD 55.2 million.
As at
December 31, 2020 and 2019, the balance of this loan amounts to
3,506,510 and 3,711,107, respectively.
10.3.3.
Loan
from Citibank N.A., JP Morgan Chase Bank N.A. and Morgan Stanley
Senior Funding INC.
On
September 12, 2019, the Company entered into a loan agreement with
Citibank N.A., JP Morgan Chase Bank N.A. and Morgan Stanley Senior
Funding INC. for USD 180 million to fund the acquisition of the
Thermal Station Brigadier López, as well as to fund future
capital expenses and other expenses.
Pursuant to the
agreement, this loan accrues an adjustable interest rate based on
LIBOR plus a margin.
Pursuant to the
loan agreement, among other obligations, CPSA has agreed to
maintain (i) a debt ratio of no more than 2.25:1.00; (ii) an
interest coverage ratio of no more than 3.50:1.00 and (iii) and a
minimum equity of USD 500 million. As at December 31, 2020, the
Company has complied with such obligations.
On June
14, 2019 the loan funds were fully disbursed.
As
mentioned in Note 20, on September 15, 2020, BCRA issued
Communication “A” 7106, which established certain
access restrictions to the foreign exchange market for the
repayment of the financial debt in which it allows payment of up to
40% of installments higher than USD1 million becoming due between
October 15, 2020 and March 31, 2021, establishing that a
refinancing plan should be submitted for the outstanding amounts,
which shall fulfill certain conditions established in the
regulation, such as that repayment must have an average life higher
than 2 years. This way, the loan installments becoming due between
December 2020 and March 2021 were under the scope of the provisions
of such regulation.
-52-
English translation of the consolidated financial statements
originally filed in Spanish with the Argentine Securities
Commission (“CNV”).
In case of discrepancy, the consolidated financial statements filed
with the CNV prevail over this translation
CENTRAL PUERTO S.A.
On
December 22, 2020, the Company signed an amendment to the loan,
modifying, among others, the amortization schedule so as to comply
with the requirements established by Communication “A”
7106, partially postponing installments becoming due in December
2020 and March 2021, extending the final payment term to June 2023,
including monthly amortizations as from January 2021 until January
2022, and keeping the amortizations in the initial schedule for
June, September and December 2021, each of them equaling 20% of
capital. In December 2020, 40% of the installment for such month
was paid, complying with the regulations in force and the
abovementioned amendment. In turn, as part of such, the applicable
interest rates were increased in two basic points as from December
12, 2020.
Among
the changes agreed, the following were included: a limitation in
the dividends payment during 2021, and a USD 25 million maximum
allowed for 2022. Moreover, a collateral agreement was signed,
which includes the pledge on turbines of Brigadier López
Thermal Station, a mortgage on the land in which such power station
is located and a LVFDV passive collection collateral
assignment.
As a
result of the described refinancing, the Company registered a
110,702 loss, which is included under the “Financial
expenses” item of the financial statements.
As a
consequence of the issuing of BCRA Communication “A”
7230, as per Note 20, as of the issuance date of these financial
statements, the Company is beginning negotiations with creditor
banks to reschedule installments becoming due in June, September
and December 2021.
As at
December 31, 2020 and 2019, the balance of the loan amounts to
13,820,843 and 14,539,489, respectively.
10.3.4.
Loan
from the IFC to the subsidiary Vientos La Genoveva
S.A.U.
On June
21, 2019, Vientos La Genoveva S.A.U., a CPSA subsidiary, entered
into a loan agreement with IFC on its own behalf, as Eligible Hedge
Provider and as an implementation entity of the Managed Co-Lending
Portfolio Program (MCPP) administered by IFC, for an amount of USD
76.1 million.
Pursuant to the
terms of the agreement subscribed with Vientos La Genoveva S.A.U.,
this loan accrues an interest rate equal to LIBOR plus 6.50% and it
is amortizable quarterly in 55 installments as from November 15,
2020.
Other
related agreements and documents, such as the Guarantee and Sponsor
Support Agreement (the “Guarantee Agreement” by which
CPSA completely, unconditionally and irrevocably guarantees, as the
main debtor, all payment obligations undertaken by Vientos La
Genoveva S.A.U until the project reaches the commercial operations
date) hedging agreements, guarantee trusts, guarantee agreements on
shares, guarantee agreements on wind turbines, direct agreements
and promissory notes have been signed.
Pursuant to the
Guarantee Agreement, among other customary covenants for this type
of facilities, CPSA has committed, until the project completion
date, to maintain (i) a leverage ratio of not more than 3.5:1.00;
and
(ii) an
interest coverage ratio of not less than 2.00:1.00. In addition,
CPSA, upon certain conditions, agreed to make certain equity
contributions to Vientos La Genoveva S.A.U.
As of
December 31, 2020, the Group has met the requirements described in
(i) and (ii) above.
On
November 22, 2019 the loan funds were fully disbursed. As at
December 31, 2020 and 2019, the balance of the loan amounts to
6,132,411 and 6,060,294, respectively.
-53-
English translation of the consolidated financial statements
originally filed in Spanish with the Argentine Securities
Commission (“CNV”).
In case of discrepancy, the consolidated financial statements filed
with the CNV prevail over this translation
CENTRAL PUERTO S.A.
10.3.5.
Loan
from Banco de Galicia y Buenos Aires S.A. to CPR Energy Solutions
S.A.U.
On May
24, 2019, CPR Energy Solutions S.A.U. (subsidiary of CPR) entered
into a loan agreement with Banco de Galicia y Buenos Aires S.A. for
an amount of USD 12.5 million to fund the construction of the wind
farm “La Castellana II”.
According to the
executed agreement, this loan accrues a fixed interest rate equal
to 8.5% during the first year and it is amortizable quarterly in 25
installments as from May 24, 2020.
Other
agreements and related documents, like the Collateral (in which
CPSA totally, unconditionally and irrevocably guarantees, as main
debtor, all the payment obligations assumed by CPR Energy Solutions
S.A.U. until total fulfillment of the guaranteed obligations or
until the project reaches the commercial operation date, what it
happens first) -, guarantee agreements on shares, guarantee
agreements on wind turbines, promissory notes and other agreements
have been executed.
Pursuant to the
Collateral, among other obligations, CPSA has agreed to maintain a
debt ratio of no more than 3.75:1.00 until the date of completion
of the project. In addition, CPSA, under certain conditions, agreed
to make capital contributions, directly or indirectly, to
subsidiary CPR Energy Solutions S.A.U. Moreover, CPSA has agreed to
maintain, unless otherwise consented to in writing by the lender,
the ownership (directly or indirectly) and control over CPR Energy
Solutions S.A.U. As at December 31, 2020, the Company has complied
with such obligations.
On May
24, 2019 the loan funds were fully disbursed. As at December 31,
2020 and 2019, the balance of this loan amounts to 913,973 and
1,011,289, respectively.
10.3.6.
Loan
from Banco Galicia y Buenos Aires S.A. to subsidiary Vientos La
Genoveva II S.A.U.
On July
23, 2019, subsidiary Vientos La Genoveva II S.A.U. entered into a
loan agreement with Banco de Galicia y Buenos Aires S.A. for an
amount of USD 37.5 million.
According to the
executed agreement, this loan accrues LIBOR plus 5.95% and it is
amortizable quarterly in 26 installments starting on the ninth
calendar month counted from the disbursement date.
Other
agreements and related documents, like the Collateral (in which
CPSA totally, unconditionally and irrevocably guarantees, as main
debtor, all the payment obligations assumed by Vientos La Genoveva
II S.A.U. until total fulfillment of the guaranteed obligations or
until the project reaches the commercial operation date, what it
happens first) -, guarantee agreements on shares and promissory
notes have been signed, while guarantee agreements on wind turbines
and direct agreements are in process of being issued, under the
terms defined by the loan agreement.
Pursuant to the
Collateral, among other obligations, CPSA has agreed, until the
project termination date, to maintain a debt ratio of no more than
3.75:1.00. Moreover, CPSA, under certain conditions, agreed to make
capital contributions to subsidiary Vientos La Genoveva II S.A.U.
Moreover, CPSA has agreed to maintain, unless otherwise consented
to in writing by the lender, the ownership (directly or indirectly)
and control over Vientos La Genoveva II S.A.U. As at December 31,
2019, the Company has complied with such obligations.
On July
23, 2019, the loan funds were fully disbursed. As of December 31,
2020 and 2019, the balance of this loan amounts to 2,711,190 and
3,053,500, respectively.
10.3.7.
Banco
Macro S.A. short-term loan
On
October 25 and 28, the Company entered into a loan agreement with
Banco Macro S.A. for an amount of 1,000,000 to be used in the
commercial business of the Company.
-54-
English translation of the consolidated financial statements
originally filed in Spanish with the Argentine Securities
Commission (“CNV”).
In case of discrepancy, the consolidated financial statements filed
with the CNV prevail over this translation
CENTRAL PUERTO S.A.
Under
the terms of the agreement, this loan accrues a variable
three-month interest rate based on pure BADLAR rate, plus a margin;
and it is completely amortized in a year.
On
October 28, 2019, the loan funds were fully disbursed. As of
December 31, 2019, the balance of this loan amounts to 1,521,951.
On June 19, 2020, the balance of this loan was fully paid in
advance.
10.3.8.
Financial
trust corresponding to Thermal Station Brigadier
López
Within
the framework of the acquisition of Thermal Station Brigadier
López, the Company assumed the capacity of trustor in the
financial trust previously entered into by Integración
Energética Argentina S.A., which was the previous holder of
the thermal station. The financial debt balance at the transfer
date of the thermal station was USD 154,662,725.
According to the
provisions of the trust agreement, the financial debt accrues an
interest rate equal to the LIBO rate plus 5% or equal to 6.25%,
whichever is higher, and it is monthly amortizable. As of December
31, 2020, 20 installments are to be amortized and the financial
debt balance amounts to 6,872,491. As of December 31, 2019, the
balance of this loan amounted to 10,502,029.
Under
the subscribed trust guarantee agreement, as at December 31, 2020
and 2019, there are trade receivables with specific assignment for
the amounts of 394,707 and 759,400, respectively.
10.3.9.
CP
Manque S.AU. and CP Los Olivos S.A.U. Program of Corporate
Bonds
Dated
August 26, 2020, under Resolution No. RESFC-2020 - 20767 -
APN.DIR#CNVM, the public offering of the Global Program for the
Co-Issuance of Simple Corporate Bonds (not convertible into shares)
by CP Manque S.A.U. and CP Los Olivos S.A.U. (both subsidiaries of
CPR, and together the “Co-issuers”) for the amount of
up to USD 80,000,000 was authorized. By virtue of such program, the
Co-Issuers may issue corporate bonds, of different class and/or
series, that may qualify as social, green and sustainable
marketable securities under the criteria established by CNV in that
regard.
Within
the framework of the mentioned program, dated September 2, 2020,
Corporate Bonds Class I were issued for an amount of USD 35.160.000
at a fix 0% interest rate expiring on September 2, 2023; and
Corporate Bonds Class II were issued for 1.109.925 at a variable
interest rate equivalent to BADLAR rate, plus an applicable margin
of 0.97% expiring on September 2, 2021.
On June
24, 2020, the Board of Directors of CPSA decided to guarantee
unconditionally, through a surety, the co-emission of corporate
bonds of its subsidiaries CP Manque S.A.U. and CP Los Olivos S.A.U.
(the “Surety”). The Surety is an obligation with a
common guarantee, not subordinated and unconditional of the
Company. And, it shall have, at all times, the same priority rank
regarding the non-guaranteed and unsubordinated obligations,
present and future, of the Company. The Surety was instrumented
through the signature of the Company in its capacity as co-signer
of the permanent global certificates deposited in Caja de Valores
S.A., in which the Corporate Bonds Class I and Corporate Bonds
Class II of CP Manque S.AU. and CP Los Olivos S.AU. are
represented.
10.3.10.
CPSA
Medium Term Note Program
On July
31, 2020, the Special Shareholders’ Meeting of the Company
approved the creation of a new global issuance program of corporate
bonds for a maximum amount of up to USD 500,000,000 (or its
equivalent in other currency), which shall be issued at short, mid
or long term, simple, not convertible into shares, under the terms
of the Corporate Bonds Act (the “Program”). Moreover,
the Board of Directors was granted the powers to determine and
establish the conditions of the Program and of the corporate bonds
to be issued under it provided they had not been expressly
determined at the Shareholders’ Meeting. On October 29, 2020,
CNV approved the creation of such program, which shall expire on
October 29, 2025, in accordance with the regulations in
force.
-55-
English translation of the consolidated financial statements
originally filed in Spanish with the Argentine Securities
Commission (“CNV”).
In case of discrepancy, the consolidated financial statements filed
with the CNV prevail over this translation
CENTRAL PUERTO S.A.
The
information on the Group’s objectives and financial risk
management policies is included in Note 17.
10.4.
Changes
in liabilities arising from financing activities
|
|
|
01-01-2020
|
|
Payments
|
|
Non-cash transactions
|
|
Disbursements
|
|
Other
|
|
12-31-2020
|
|
|
|
ARS 000
|
|
ARS 000
|
|
ARS 000
|
|
ARS 000
|
|
ARS 000
|
|
ARS 000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
and borrowings
|
|
41,777,839
|
|
-
|
|
(20,783,892)
|
|
2,851,984
|
|
6,998,936
|
|
30,844,867
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
and borrowings
|
|
10,926,497
|
|
(6,299,174)
|
|
(9,309,363)
|
|
1,216,655
|
|
23,589,846
|
|
20,124,461
|
|
|
|
01-01-2019
|
|
Payments
|
|
Non-cash transactions
|
|
Disbursements
|
|
Other
|
|
12-31-2019
|
|
|
|
ARS 000
|
|
ARS 000
|
|
ARS 000
|
|
ARS 000
|
|
ARS 000
|
|
ARS 000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
loans and borrowings
|
|
10,898,713
|
|
-
|
|
(11,783,404)
|
|
25,894,340
|
|
16,768,190
|
|
41,777,839
|
|
Borrowings
from CAMMESA
|
|
2,103,297
|
|
-
|
|
(736,032)
|
|
-
|
|
(1,367,265)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
loans and borrowings
|
|
1,408,757
|
|
(1,326,566)
|
|
(4,378,349)
|
|
6,617,578
|
|
8,605,077
|
|
10,926,497
|
|
Borrowings
from CAMMESA
|
|
3,796,747
|
|
-
|
|
(7,023,304)
|
|
-
|
|
3,226,557
|
|
-
|
The
“Non-cash transactions” column includes: i) the effect
to cancel borrowings from CAMMESA under Resolution 146 with trade
receivables from CAMMESA related with remuneration from
non-recurring maintenance and ii) the income (loss) for exposure to
change in purchasing power of currency (RECPAM), which amounted to
30,093,255 and 16,161,753 as of December 31, 2020 and 2019,
respectively. The “Other” column includes the effect of
reclassification of non-current portion to current due to the
passage of time, the foreign exchange movement and the effect of
accrued but not yet paid interest. The group classifies interest
paid as cash flows from financing activities.
10.5.
Quantitative
and qualitative information on fair values
Information
on the fair value of financial assets and liabilities by
category
The
following tables is a comparison by category of the carrying
amounts and the relevant fair values of financial assets and
liabilities.
|
|
Carrying amount
|
|
Fair value
|
||||
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
ARS 000
|
|
ARS 000
|
|
ARS 000
|
|
ARS 000
|
|
|
|
|
|
|
|
|
|
|
Financial assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade
and other receivables
|
48,135,140
|
|
54,306,604
|
|
48,135,140
|
|
54,306,604
|
|
Other
financial assets
|
14,076,309
|
|
10,481,099
|
|
14,076,309
|
|
10,481,099
|
|
Cash
and cash equivalents
|
278,698
|
|
2,033,761
|
|
278,698
|
|
2,033,761
|
|
Total
|
62,490,147
|
|
66,821,464
|
|
62,490,147
|
|
66,821,464
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
and borrowings
|
50,969,328
|
|
52,704,336
|
|
50,969,328
|
|
52,704,336
|
|
Total
|
50,969,328
|
|
52,704,336
|
|
50,969,328
|
|
52,704,336
|
-56-
English translation of the consolidated financial statements
originally filed in Spanish with the Argentine Securities
Commission (“CNV”).
In case of discrepancy, the consolidated financial statements filed
with the CNV prevail over this translation
CENTRAL PUERTO S.A.
Valuation
techniques
The
fair value reported in connection with the abovementioned financial
assets and liabilities is the amount at which the instrument could
be exchanged in a current transaction between willing parties,
other than in a forced or liquidation sale. The following methods
and assumptions were used to estimate the fair values:
Management assessed
that the fair values of current trade receivables and current loans
and borrowings approximate their carrying amounts largely due to
the short-term maturities of these instruments.
The
Group measures long-terms receivables at fixed and variable rates
based on discounted cash flows. The valuation requires that the
Group adopt certain assumptions such as interest rates, specific
risk factors of each transaction and the creditworthiness of the
customer.
Fair
value of quoted debt securities, mutual funds, stocks and corporate
bonds is based on price quotations at the end of each reporting
period.
The
fair value of the foreign currency forward contracts is calculated
based on appropriate valuation techniques that use market
observable data.
Fair
value hierarchy
The
following tables provides, by level within the fair value
measurement hierarchy, the Company’s financial assets, that
were measured at fair value on recurring basis as of December 31,
2020, and 2019:
|
|
|
Fair value measurement using:
|
||||||
|
12-31-2020
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
|
|
ARS 000
|
|
ARS 000
|
|
ARS 000
|
|
ARS 000
|
|
Assets
measured at fair value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial assets at
fair value through profit or loss
|
|
|
|
|
|
|
|
|
|
Mutual
funds
|
|
789,291
|
|
789,291
|
|
-
|
|
-
|
|
Public
debt securities
|
|
12,146,740
|
|
12,146,740
|
|
-
|
|
-
|
|
Stocks
and corporate bonds
|
|
1,140,278
|
|
1,140,278
|
|
-
|
|
-
|
|
Total
financial assets measured at fair value
|
|
14,076,309
|
|
14,076,309
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
measured at fair value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivative
financial liabilities not designated as hedging
instruments
|
|
|
|
|
|
|
|
|
|
Interest rate
swap
|
|
942,216
|
|
-
|
|
942,216
|
|
-
|
|
Stock
options
|
|
288,975
|
|
288,975
|
|
-
|
|
-
|
|
Total
financial liabilities measured at fair value
|
|
1,231,191
|
|
288,975
|
|
942,216
|
|
-
|
|
|
|
Fair value measurement using:
|
||||||
|
12-31-2019
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
|
|
ARS 000
|
|
ARS 000
|
|
ARS 000
|
|
ARS 000
|
|
Assets
measured at fair value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial assets at
fair value through profit or loss
|
|
|
|
|
|
|
|
|
|
Mutual
funds
|
|
5,766,320
|
|
5,766,320
|
|
-
|
|
-
|
|
Public
debt securities
|
|
4,714,779
|
|
4,714,779
|
|
-
|
|
-
|
|
Total
financial assets measured at fair value
|
|
10,481,099
|
|
10,481,099
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
measured at fair value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivative
financial liabilities not designated as hedging
instruments
|
|
|
|
|
|
|
|
|
|
Interest rate
swap
|
|
405,964
|
|
-
|
|
405,964
|
|
-
|
|
Total
financial liabilities measured at fair value
|
|
405,964
|
|
-
|
|
405,964
|
|
-
|
-57-
English translation of the consolidated financial statements
originally filed in Spanish with the Argentine Securities
Commission (“CNV”).
In case of discrepancy, the consolidated financial statements filed
with the CNV prevail over this translation
CENTRAL PUERTO S.A.
There
were no transfers between hierarchies and there were not
significant variations in assets values.
The
information on the Group’s objectives and financial risk
management policies is included in Note 17, of these financial
statements.
11.
Non-financial assets and liabilities
11.1.
Other
non-financial assets
|
|
2020
|
|
2019
|
|
|
ARS 000
|
|
ARS 000
|
|
Non-current:
|
|
|
|
|
Tax
credits
|
286,323
|
|
758,751
|
|
Income
tax credits
|
193,282
|
|
173,499
|
|
Prepayments to
vendors
|
4,511
|
|
6,011
|
|
|
484,116
|
|
938,261
|
|
|
|
|
|
|
Current:
|
|
|
|
|
Upfront
payments of inventories purchases
|
118,366
|
|
289,778
|
|
Prepayment
insurance
|
116,652
|
|
593,985
|
|
Tax
credits
|
629,240
|
|
393,832
|
|
Other
|
36,103
|
|
92,316
|
|
|
900,361
|
|
1,369,911
|
11.2.
Other
non-financial liabilities
|
|
2020
|
|
2019
|
|
|
ARS 000
|
|
ARS 000
|
|
Non-current:
|
|
|
|
|
VAT
payable
|
5,077,447
|
|
5,672,279
|
|
Tax on
bank account transactions payable
|
176,855
|
|
256,192
|
|
|
5,254,302
|
|
5,928,471
|
|
Current:
|
|
|
|
|
VAT
payable
|
1,876,358
|
|
1,888,727
|
|
Turnover tax
payable
|
53,845
|
|
79,961
|
|
Income
tax withholdings payable
|
39,785
|
|
62,205
|
|
Concession fees and
royalties
|
62,918
|
|
85,609
|
|
Tax on
bank account transactions payable
|
215,982
|
|
184,592
|
|
Other
|
2,310
|
|
60,059
|
|
|
2,251,198
|
|
2,361,153
|
11.3.
Compensation
and employee benefits liabilities
|
|
2020
|
|
2019
|
|
|
ARS 000
|
|
ARS 000
|
|
Non-current:
|
|
|
|
|
Employee long-term
benefits
|
314,612
|
|
312,142
|
-58-
English translation of the consolidated financial statements
originally filed in Spanish with the Argentine Securities
Commission (“CNV”).
In case of discrepancy, the consolidated financial statements filed
with the CNV prevail over this translation
CENTRAL PUERTO S.A.
The
following tables summarize the components of net benefit expense
recognized in the consolidated statement of income as long-term
employee benefit plans and the changes in the long-term employee
benefit liabilities recognized in the consolidated statement of
financial position.
|
|
2020
|
|
2019
|
|
|
ARS 000
|
|
ARS 000
|
|
Benefit
plan expenses
|
|
|
|
|
|
|
|
|
|
Cost of
interest
|
22,996
|
|
17,754
|
|
Cost of
service for the current year
|
99,697
|
|
47,641
|
|
Past
service cost
|
-
|
|
37,719
|
|
Expense
recognized during the year
|
122,693
|
|
103,114
|
|
|
|
|
|
|
Defined
benefit obligation at beginning of year
|
312,142
|
|
310,617
|
|
|
|
|
|
|
Cost of
interest
|
88,216
|
|
38,641
|
|
Cost of
service for the current year
|
20,347
|
|
14,400
|
|
Past
service cost
|
-
|
|
37,719
|
|
Actuarial (gains)
losses
|
(7,471)
|
|
59,403
|
|
Benefits
paid
|
(15,759)
|
|
(40,149)
|
|
Decrease due to
gain on net monetary position
|
(82,863)
|
|
(108,489)
|
|
Defined
benefit obligation at end of year
|
314,612
|
|
312,142
|
The
main key assumptions used to determine the obligations as of
year-end are as follows:
|
Main key assumptions used
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
Discount
rate
|
|
5,50%
|
|
5,50%
|
|
|
|
|
|
|
|
Increase
in the real annual salary
|
|
2,00%
|
|
2,00%
|
|
|
|
|
|
|
|
Turn
over of participants
|
|
0,73%
|
|
0,73%
|
A one
percentage point change in the discount rate applied would have the
following effect:
|
|
Increase
|
|
Decrease
|
|
|
ARS 000
|
|
ARS 000
|
|
|
|
|
|
|
Effect
on the benefit obligation as of the 2020 year-end
|
(24,754)
|
|
29,105
|
|
Effect
on the benefit obligation as of the 2019 year-end
|
(25,328)
|
|
29,849
|
A one
percentage point change in the annual salary assumed would have the
following effect:
|
|
Increase
|
|
Decrease
|
|
|
ARS 000
|
|
ARS 000
|
|
|
|
|
|
|
Effect
on the benefit obligation as of the 2020 year-end
|
27,115
|
|
(23,487)
|
|
Effect
on the benefit obligation as of the 2019 year-end
|
27,872
|
|
(24,089)
|
-59-
English translation of the consolidated financial statements
originally filed in Spanish with the Argentine Securities
Commission (“CNV”).
In case of discrepancy, the consolidated financial statements filed
with the CNV prevail over this translation
CENTRAL PUERTO S.A.
As of
December 31, 2020, and 2019, the Group had no assets in connection
with employee benefit plans.
|
|
2020
|
|
2019
|
|
|
ARS 000
|
|
ARS 000
|
|
Current:
|
|
|
|
|
Vacation
and statutory bonus
|
413,302
|
|
330,042
|
|
Contributions
payable
|
129,041
|
|
130,514
|
|
Bonus
accrual
|
445,068
|
|
484,316
|
|
Other
|
31,508
|
|
6,355
|
|
|
1,018,919
|
|
951,227
|
12.
Intangible assets
Concession
right of Piedra del Águila hydroelectric power
plant
Includes the
amounts paid as consideration for rights relating to the concession
of Piedra del Águila hydroelectric power plant awarded by the
Argentine government for a 30-year term, until December 29, 2023.
The Group amortizes such intangible asset based on straight-line
basis over the remaining life of the concession
agreement.
For a
concession arrangement to fall within the scope of IFRIC 12, usage
of the infrastructure must be controlled by the concession grantor.
This requirement is met when the following two conditions are
met:
-
the grantor
controls or regulates what services the operator must provide with
the infrastructure, to whom it must provide them, and at what
price; and
-
the grantor
controls the infrastructure, i.e., retains the right to take back
the infrastructure at the end of the concession.
Upon
Resolution 95 passed by Argentine government our concession right
of Piedra del Águila hydroelectric power plant met both
conditions above.
The
main features of the concession contract are as
follows:
Control and regulation of prices by concession
grantor: Pricing schedule approved by grantor;
Remuneration paid by:
CAMMESA;
Grant or guarantee from concession
grantor: None;
Residual value: Infrastructure returned
to grantor for no consideration at end of concession;
Concession end date: December 29,
2023;
IFRIC 12 accounting model: Intangible
asset.
Fees and royalties: the
Intergovernmental Basin Authority is entitled to a fee of 2.5% of
the plant’s revenues, and the provinces of Rio Negro and
Neuquén are entitled to royalties of 12% of such revenues. For
the years ended December 31, 2020 and 2019, the fees and royalties
amounted 448,404 and 500,707, respectively and they were shown in
operating expenses in the consolidated statement of
income.
-60-
English translation of the consolidated financial statements
originally filed in Spanish with the Argentine Securities
Commission (“CNV”).
In case of discrepancy, the consolidated financial statements filed
with the CNV prevail over this translation
CENTRAL PUERTO S.A.
Contractual capital
investment obligations and obligations relating to maintenance
expenditure on infrastructure under concession are
nominal.
Transmission
lines of wind farms Achiras and La Castellana
The
Group finished the construction of wind farms La Castellana and
Achiras, whereby it was agreed to construct high and medium tension
lines and the electrical substation to connect the wind farms to
SADI, a part of which were given to the companies transporting the
energy in accordance with the respective contracts; therefore, such
companies are in charge of the maintenance of such transferred
installations. Consequently, the Group recognized intangible assets
for the works related to the construction of the described
equipments.
Electrical
substation of wind farm La Genoveva II
During
2019 the Group finished the construction of wind farms La Genoveva
II, whereby it was agreed to construct the electrical substation
that feeds the connection of the wind farm to the SADI, a part of
which were given to the company transporting the energy; therefore,
such company is in charge of the maintenance of such transferred
installations. Consequently, the Group recognized intangible assets
for an amount of 33,722, which were transferred from property,
plant and equipment.
Electrical
substation of wind farm La Genoveva
During
2020 the Group finished the construction of wind farms La Genoveva,
whereby it was agreed to construct the electrical substation that
feeds the connection of the wind farm to the SADI, a part of which
were given to the company transporting the energy; therefore, such
company is in charge of the maintenance of such transferred
installations. Consequently, the Group recognized intangible assets
for an amount of 50,122, which were transferred from property,
plant and equipment.
Turbogas
and turbosteam supply agreements for Thermal Station Brigadier
López
During
fiscal year 2019, as a result of the business combination
corresponding to the acquisition of the Thermal Station Brigadier
López, the Group recognized an intangible asset for 8,296,920
related to turbogas and turbosteam supply agreements entered into
with CAMMESA regarding Thermal Station Brigadier
López.
13.
Cash
and short-term deposits
For the
purpose of the consolidated statement of financial position and the
consolidated statement of cash flow, cash and short-term deposits
comprise the following items:
|
|
2020
|
|
2019
|
|
|
ARS 000
|
|
ARS 000
|
|
|
|
|
|
|
Cash at
banks and on hand
|
278,698
|
|
2,033,761
|
Bank
balances accrue interest at variable rates based on the bank
deposits daily rates. Short-term deposits are made for varying
periods of between one day and three months, depending on the
immediate cash requirements of the Group, and earn interest at the
respective fixed short-term deposit rates.
14.
Equity
reserves and dividends paid
On
April 30, 2019, the Shareholders’ Meeting of the Company
approved i) to restore the legal reserve balance to its value prior
to the absorption of the accumulated negative earnings resulting
from the inflation-adjustment,
-61-
English translation of the consolidated financial statements
originally filed in Spanish with the Argentine Securities
Commission (“CNV”).
In case of discrepancy, the consolidated financial statements filed
with the CNV prevail over this translation
CENTRAL PUERTO S.A.
which
had been carried out according to the terms of RG no. 777/18 of the
CNV for an amount of 3,238,426,
ii) to
increase the legal reserve in the amount of 2,435,491 and iii) to
allocate the remaining unappropriated earnings as of December 31,
2018 to increase the voluntary reserve by 28,382,471 in order to
increase the solvency of the Company.
On
November 22, 2019, the Shareholders’ Meeting of the Company
decided to partially deallocate the voluntary reserve and to
destine the deallocated amount to the distribution of a cash
dividend for an amount equivalent to ARS 0.71 per share (nominal
value), which was paid on December 5, 2019.
On
April 30, 2020, the Shareholders’ Meeting of the Company
approved to increase the legal reserve in the amount of 599,618 and
to allocate the remaining unappropriated earnings as of December
31, 2019 to increase the voluntary reserve by
12,387,590.
15.
Provisions
and contingent liabilities
The
evolution of provisions included in liabilities is disclosed in
Exhibit E.
16.
Information
on related parties
The
following table provides the transactions performed and the
accounts payable to/receivable from related parties as of December
31, 2020 and 2019:
|
|
|
|
Income
|
|
Expenses
|
|
Receivables
|
|
Payables
|
|
|
|
|
ARS 000
|
|
ARS 000
|
|
ARS 000
|
|
ARS 000
|
|
Associates:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Termoeléctrica
José de San Martín S.A.
|
12-31-2020
|
|
565
|
|
-
|
|
48
|
|
-
|
|
|
12-31-2019
|
|
644
|
|
-
|
|
366
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Distribuidora
de Gas Cuyana S.A.
|
12-31-2020
|
|
-
|
|
370.927
|
|
-
|
|
27.659
|
|
|
12-31-2019
|
|
-
|
|
590.500
|
|
-
|
|
26.270
|
|
|
|
|
|
|
|
|
|
|
|
|
Energía
Sudamericana S.A.
|
12-31-2020
|
|
-
|
|
-
|
|
-
|
|
548
|
|
|
12-31-2019
|
|
-
|
|
-
|
|
-
|
|
746
|
|
|
|
|
|
|
|
|
|
|
|
|
Related companies:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RMPE
Asociados S.A.
|
12-31-2020
|
|
254
|
|
544.413
|
|
-
|
|
-
|
|
|
12-31-2019
|
|
242
|
|
489.127
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Coyserv S.A.
|
12-31-2020
|
|
-
|
|
2.959
|
|
-
|
|
-
|
|
|
12-31-2019
|
|
-
|
|
42.118
|
|
745
|
|
204
|
|
Total
|
12-31-2020
|
|
819
|
|
918.299
|
|
48
|
|
28.207
|
|
|
12-31-2019
|
|
886
|
|
1.121.745
|
|
1.111
|
|
27.220
|
Balances
and transactions with shareholders
As at December 31,
2020, there is a balance of 181,718 shareholders, corresponding to
the personal property tax entered by the Company under the
substitute decision maker scheme.
On June
24, 2020, the Board of Directors of the Company authorized the
purchase of 30% of the capital stock of the subsidiary CP
Renovables S.A. to its minority shareholder, representing
993,993,952 shares, at a value of US Dollars 0.034418 per share,
which was completely paid through the transfer of financial assets.
Based
-62-
English translation of the consolidated financial statements
originally filed in Spanish with the Argentine Securities
Commission (“CNV”).
In case of discrepancy, the consolidated financial statements filed
with the CNV prevail over this translation
CENTRAL PUERTO S.A.
on the
Audit Committee’s report, the Board of the Company determined
that such transaction is an arm´s length
transaction.
This
transaction was accounted for as a transaction with non-controlling
interest in accordance with IFRS 10. Consequently, the difference
of 1,966,148 between the book value of the non-controlling interest
at the transaction date and the fair value of the consideration
paid was directly recognized in equity and attributed to holders of
the parent.
This
way, CPSA’s interest in the subsidiary CP Renovables S.A.
amounts to 100% of the capital stock as at December 31,
2020.
Terms
and conditions of transactions with related parties
Balances at the
related reporting period-ends are unsecured and interest free.
There have been no guarantees provided or received for any related
party receivables or payables.
For the
years ended December 31, 2020 and 2019, the Group has not recorded
any impairment of receivables relating to amounts owed by related
parties. This assessment is undertaken at the end of each reporting
period by examining the financial position of the related party and
the market in which the related party operates.
17.
Financial
risk management objectives and policies
-
Interest rate
risk
Interest rate
variations affect the value of assets and liabilities accruing a
fixed interest rate, as well as the flow of financial assets and
liabilities with floating interest rates.
The
Company´s risk administration policy is defined for the
purposes of reducing the effect of the purchasing power loss. Net
monetary positions during most of fiscal year 2020 were
liabilities. Therefore, the Company is not actually exposed to the
purchasing power loss risk. During most of 2019, net monetary
positions were assets. Therefore, the Company sought to mitigate
such risk with adjustment mechanisms through interest and exchange
differences. Consequently, during 2020, item "Gain / (loss) on net
monetary position” registered a net profit due to
inflation-exposure of monetary items; while in 2019, item "Gain
(loss) on net monetary position" registered a net loss due to
inflation-exposure of monetary items.
Interest rate sensitivity
The
following table shows the sensitivity of income before income tax
for the year ended December 31, 2020, to a reasonably possible
change in interest rates over the portion of loans bearing interest
at a variable interest rate, with all other variables held
constant:
-63-
English translation of the consolidated financial statements
originally filed in Spanish with the Argentine Securities
Commission (“CNV”).
In case of discrepancy, the consolidated financial statements filed
with the CNV prevail over this translation
CENTRAL PUERTO S.A.
|
Increase in percentage
|
|
Effect on income before income tax (Loss)
|
|
|
|
ARS 000
|
|
|
|
|
|
5%
|
|
(2,452,175)
|
-
Foreign currency
risk
Foreign
currency risk is the risk that the fair value or future cash flows
of a financial instrument will fluctuate because of changes in
foreign exchange rates.
-64-
English translation of the consolidated financial statements
originally filed in Spanish with the Argentine Securities
Commission (“CNV”).
In case of discrepancy, the consolidated financial statements filed
with the CNV prevail over this translation
CENTRAL PUERTO S.A.
The
Company is exposed to the foreign currency risk at an ARS/USD
ratio, mainly due to its operating activities, the investment
projects defined by the Company and the financial debt related to
the bank loans mentioned in Note 10.3. The Company does not use
derivative financial instruments to hedge such risk. As of December
31, 2020, the net balance exposed to this risk amounts to USD
142,681 thousand, since existing liabilities in foreign currency
for USD 611,593 thousand exceed receivables, other financial assets
and cash and short-term deposits in foreign currency for USD
468,912 thousand.
Foreign currency sensitivity
The
following table shows the sensitivity to a reasonably possible
change in the US dollar exchange rate, with all other variables
held constant, of income before income tax as of December 31, 2020
(due to changes in the fair value of monetary assets and
liabilities).
|
Change in USD rate
|
|
Effect on income before income tax (Loss)
|
|
|
|
ARS 000
|
|
|
|
|
|
10%
|
|
(1,201,220)
|
-
Price
risk
The
Company’s revenues depend on the electric power price in the
spot market and the production cost paid by CAMMESA. The Company
has no power to set prices in the market where it operates, except
for the income from agreements entered into in the Term Market,
where the price risk is reduced since normally prices are
negotiated above the spot market price.
Credit
risk
Credit
risk is the risk that a counterparty will not meet its obligations
under a financial instrument or customer contract, leading to a
financial loss. The Company is exposed to credit risk from its
operating activities (primarily for trade receivables) and from its
financing activities, including holdings of government
securities.
-
Trade and other
receivables
The
Finance Department is in charge of managing customer credit risk
subject to policies, procedures and controls relating to the
Group’s credit risk management. Customer receivables are
regularly monitored. Although the Group has received no guarantees,
it is entitled to request interruption of electric power flow if
customers fail to comply with their credit obligations. In regards
to credit concentration, see Note 10.1. The need to book impairment
is analyzed at the end of each reporting period on an individual
basis for major clients. The allowance recorded as of December 31,
2020, is deemed sufficient to cover the potential impairment in the
value of trade receivables.
-
Cash and cash
equivalents
Credit
risk from balances with banks and financial institutions is managed
by the Group’s treasury department in accordance with
corporate policy. Investments of surplus funds are made only with
approved counterparties; in this case, the risk is limited because
high-credit-rating banks are involved.
-
Public and
corporate securities
This
risk is managed by the Company’s finance management according
to corporate policies, whereby these types of investments may only
be made in first-class companies and in instruments issued by the
federal or provincial governments.
-65-
English translation of the consolidated financial statements
originally filed in Spanish with the Argentine Securities
Commission (“CNV”).
In case of discrepancy, the consolidated financial statements filed
with the CNV prevail over this translation
CENTRAL PUERTO S.A.
Liquidity
risk
The
Group manages its liquidity to guarantee the funds required to
support its business strategy. Short-term financing needs related
to seasonal increases in working capital are covered through
short-and medium-term bank credit lines.
The
table below summarizes the maturity profile of the Company’s
financial liabilities.
|
|
Less than 3 months
|
|
3 to 12 months
|
|
More than a year
|
|
Total
|
|
|
ARS 000
|
|
ARS 000
|
|
ARS 000
|
|
ARS 000
|
|
|
|
|
|
|
|
|
|
|
As
of December 31, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
and borrowings
|
4,510,320
|
|
15,614,141
|
|
30,844,867
|
|
50,969,328
|
|
Trade
and other payables
|
2,545,492
|
|
-
|
|
-
|
|
2,545,492
|
|
|
7,055,812
|
|
15,614,141
|
|
30,844,867
|
|
53,514,820
|
|
As
of December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
and borrowings
|
-
|
|
10,926,497
|
|
41,777,839
|
|
52,704,336
|
|
Trade
and other payables
|
8,031,529
|
|
-
|
|
-
|
|
8,031,529
|
|
|
8,031,529
|
|
10,926,497
|
|
41,777,839
|
|
60,735,865
|
Granted
and received guarantees
The
Group has posted a bank bond to cover the obligations undertaken
under the Concession Agreement of Complejo Hidroeléctrica
Piedra del Águila for 9,143.
On
October 16, 2006, the Group entered into two pledge agreements with
the Secretariat of Energy to guarantee our performance obligations
in favor of the FONINVEMEM trusts under certain construction
management and operation management agreements and provided as
collateral: (a) 100% of our shares in TSM and TMB, and (b) 50% of
the rights conferred by our LVFVD receivables for the duration of
the construction management agreement and the operation management
agreement.
Likewise, the Group
entered into various guarantee agreements to provide performance
assurance of its obligations arising from the agreements described
in Notes 1.2.a), 10.3.1, 10.3.3, 10.3.4, 10.3.5, 10.3.6,
10.3.9
and
18.6.
18.
Contracts,
acquisitions and agreements
18.1.
Maintenance
and service contracts
The
Group entered into long-term service agreements executed with
leading global companies in the construction and maintenance of
thermal generation plants, such as (i) General Electric, which is
in charge of the maintenance of the Puerto Combined Cycle plant,
and part of the Mendoza based units, and (ii) Siemens, which is in
charge of the maintenance of the combined cycle unit based in
Mendoza site.
Under
long-term service agreements, suppliers provide materials, spare
parts, labor and on-site engineering guidance in connection with
scheduled maintenance activities, in accordance with the applicable
technical recommendations.
-66-
English translation of the consolidated financial statements
originally filed in Spanish with the Argentine Securities
Commission (“CNV”).
In case of discrepancy, the consolidated financial statements filed
with the CNV prevail over this translation
CENTRAL PUERTO S.A.
18.2.
Agreement
for supplying electricity and steam to YPF
As from
January 1999 and for a 20-year term, our Luján de Cuyo plant
supplies 150 tons per hour of steam to YPF’s refinery in
Luján de Cuyo under a steam supply agreement. Under this
agreement YPF supplies the Luján de Cuyo plant with the fuel
and water needed for operation of the plant.
On
February 8, 2018, we signed an agreement to extend the
aforementioned agreement with YPF for a period of up to 24 months
or up to the start of commercial operation of the new Luján de
Cuyo co-generation unit, which is described in Note 18.7, whatever
occurs first. This way, this agreement was valid up to September
24, 2019 since the new cogeneration commenced supplying steam to
YPF on September 25, 2019, the new steam agreement entering into
force on October 5, 2019.
18.3.
Acquisition
of Siemens gas turbine
On
December 18, 2014, the Company acquired from Siemens a gas turbine
for electric power generation composed by a turbine and a generator
with 286 MW output power, and the proper ancillary equipment and
maintenance and assistance services. This equipment is being used
in the cogeneration project called "Terminal 6 San Lorenzo", which
is described in Note 18.7.
18.4.
Acquisition
of General Electric gas turbine
On
March 13th, 2015, the Company acquired a gas turbine from General
Electric and hired their specialized technical support services.
The unit is a gas turbine with 373 MW output power.
18.5.
Acquisition
of two Siemens gas turbines
On May
27th, 2016, the Company acquired from Siemens two gas turbines for
electric power generation composed by a turbine and a generator
with 298 MW output power, and the proper ancillary equipment and
maintenance and assistance services.
As of
December 31, 2020, these assets were classified under the item
“Property, plant and equipment available for sale”
since the conditions described in Note 2.3.19 were fulfilled as of
that date.
18.6.
Renewable
Energy generation farms
During
2018, the wind farms belonging to CP La Castellana S.A.U. and CP
Achiras S.A.U. (CPR subsidiaries) were commissioned, with a
capacity of 100.8 MW and 48 MW, respectively.
Likewise, on July
17, 2019 the wind form “La Castellana II” belonging to
CPR Energy Solutions S.A.U. (a CPR subsidiary) was commissioned,
with a capacity of 14.4 MW, which was extended to 15.2 MW on
February 21, 2020. Also, on September 14, 2019 the wind farm
belonging to the subsidiary Vientos La Genoveva II S.A.U. was
commissioned, with a capacity of 41.8 MW. Finally, on December 7,
2019 the wind form belonging to CP Manque S.A.U. (a CPR subsidiary)
was commissioned, with a capacity of 38 MW being the total
projected capacity of 57 MW; then, on January 23, 2020 the
commissioned capacity was extended to 53.2 MW; and finally, on
March 3, 2020 the remaining capacity was commissioned completing
the total 57 MW.
During
February 2020 the wind form belonging to CP Los Olivos S.A.U. (a
CPR subsidiary) was commissioned, with a capacity of 22.8
MW.
On
September 11, 2020, the partial authorization for the commercial
operation of 12 out of 21 wind turbines that form the wind farm La
Genoveva, with a maximum 50.4 MW power, was granted. Afterwards, on
October 30, 2020, 8 wind turbines were authorized for commercial
operation, reaching an 84 MW power. Finally, on December 21, 2020,
the commercial authorization for the total capacity of the farm
(88.2 MW) was granted, starting the energy supply under the
agreement entered into with CAMMESA, which is described in the
following paragraph.
-67-
English translation of the consolidated financial statements
originally filed in Spanish with the Argentine Securities
Commission (“CNV”).
In case of discrepancy, the consolidated financial statements filed
with the CNV prevail over this translation
CENTRAL PUERTO S.A.
In 2017
the Group entered into power purchase agreements with CAMMESA for
La Castellana and Achiras wind farms for a 20-year term as from the
launch of the commercial operations. Likewise, during 2018 the
Group entered into a power purchase agreement with CAMMESA for La
Genoveva wind farm for a 20-year term as from the launch of the
commercial operations at full capacity.
Regarding wind farm
La Castellana II, the Group entered into supply agreements with
Rayen Cura S.A.I.C. for a 7-year term and approximately 35,000
MWh/year volume, with Metrive S.A. for a 15-year term and 12,000
MWh/year volume, with N. Ferraris for a 10-year term and 6,500
MWh/year volume and with Banco de Galicia y Buenos Aires S.A. for a
10-year term to supply energy demand for approximately 4,700
MWh/year.
Regarding wind farm
La Genoveva II, the Group entered into supply agreements with Aguas
y Saneamiento S.A. (AYSA) for a 10-year term from the beginning of
operations date of the wind farm and approximately 87.6 GWh/year
volume, with PBB Polisur S.R.L. (Dow Chemical) for a term of 6
years and an estimated volume of 80 GWh/year, with Farm Frites for
a 5-year term and 9.5 GWh/year volume and with BBVA for a 5-year
term and 6 GWh/year volume.
Regarding wind farm
Manque, the Group entered into a power purchase agreement with
Cervecería y Maltería Quilmes SAICAyG
(“Quilmes”) for the wind farm Manque for a 20-year term
as from the launch of the commercial operations and for an
estimated volume of 230 GWh per year.
Regarding the wind
farm Los Olivos, the Group entered into power purchase agreements
with S.A. San Miguel A.G.I.C.I. y F., Minera Alumbrera Limited and
SCANIA Argentina S.A.U. for a 10-year term as from the launch of
commercial operations, to supply them 8.7 GWh/year, 27.4 GWh/year
and
20.2
GWh/year, respectively.
Acquisition
and operation of wind turbines
The
Group has entered into agreements with Nordex Windpower S.A. for
the operation and maintenance of Achiras and La Castellana wind
farms for a 10-year term.
Moreover, the Group
has entered into agreements with Vestas Argentina S.A. for the
operation and maintenance of La Genoveva I, La Genoveva II, La
Castellana II, Manque and Los Olivos wind farms for a 5- year
term.
18.7.
Awarding
of co-generation projects
On
September 25, 2017, the Company was awarded through Resolution SEE
820/2017 with two co-generation projects called “Terminal 6
San Lorenzo” with a capacity of 330 MW and Luján de Cuyo
(within our Luján de Cuyo plant) with a capacity of 93
MW.
On
January 4, 2018, the Company entered into power purchase agreements
with CAMMESA for each of the mentioned projects for a 15-year term
as from the launch of commercial operations.
On
December 15, 2017, we executed a new steam supply contract with YPF
for a 15-year term that began when the new co-generation unit at
our Luján de Cuyo plant started operations.
Also,
on December 27, 2017, we entered into a steam supply agreement with
T6 Industrial S.A. for the new co-generation unit at our Terminal 6
San Lorenzo plant for a 15 year-term.
On
October 5, 2019, the commercial operation of the new cogeneration
unit Luján de Cuyo started. On November 21, 2020, the open
cycle commercial operation of cogeneration unit Terminal 6 San
Lorenzo started with an authorized power of 269.5 MW.
-68-
English translation of the consolidated financial statements
originally filed in Spanish with the Argentine Securities
Commission (“CNV”).
In case of discrepancy, the consolidated financial statements filed
with the CNV prevail over this translation
CENTRAL PUERTO S.A.
18.8.
Purchase
of natural gas for generation
As
accepted under Regulation SGE No. 70/2018 described in Note 1.2.d),
the Company reinstated its activities towards purchasing natural
gas as from late November 2018, in order to supply its generation
stations. As from December 2018, all natural gas used by the
Company was purchased to producers and distributors directly, as
well as the transported associated to those consumptions. The
Company’s main natural gas providers were YPF, Tecpetrol,
Total, Metroenergía and Pluspetrol, among others.
As from
December 30, 2019, as stated in Note 1.2.d), the Ministry of
Productive Development decided to centralize the purchase of fuel
to generate electrical energy through CAMMESA, repealing Resolution
No. 70/2018 of the former Secretariat of Energy. The scope of this
new measure is for the WEM generation units that commercialize
their energy and power in the spot market.
18.9.
Thermal
Station Brigadier López acquisition
In the
context of a local and foreign public tender called by
Integración Energética Argentina S.A.
(“IEASA”), which has been awarded to the Company, on
June 14, 2019 the transfer agreement of the production unit that is
part of Brigadier López Thermal Station and of the premises on
which the Station is located, was signed, including: a) production
unit for the Station, which includes personal property, recordable
personal property, facilities, machines, tools, spare parts, and
other assets used for the Station operation and use; b)
IEASA’s contractual position in executed contracts (including
turbogas and turbosteam supplying contracts with CAMMESA and the
financial trust agreement signed by IEASA as trustor, among
others); c) permits and authorizations in effect related to the
Station operation; and d) the labor relationship with the
transferred employees.
The
Station currently has a Siemens gas turbine of 280.5 MW. According
to the tender specifications and conditions, it is expected to
supplement the gas turbine with a boiler and a steam turbine to
reach the closing of the combined cycle, which will generate 420 MW
in total.
The
cycle closing works’ finishing is pending.
The
amount paid on June 14, 2019 amounted to USD 165,432,500, formed by
a cash amount of USD 155,332,500, plus an amount of USD 10,100,000
settled through the assignment of LVFVD to IEASA.
19.
Tax
integral inflation adjustment
Pursuant to Law no.
27,468, modified by Law no. 27,430 as described in Note 21, to
determine the amount of taxable net profits for fiscal years
commencing January 1, 2019, the inflation adjustment calculated on
the basis of the provisions set forth in the income tax law will
have to be added to or deducted from the fiscal year’s tax
result. This adjustment will only be applicable (a) if the variance
percentage of the consumers price index (“IPC”) during
the 36 months prior to fiscal year closing is higher than 100%, and
(b) for the first, second, and third fiscal year as from January 1,
2018, if the accumulated IPC variance is higher than 55%, 30% or
15% of such 100%, respectively. The positive or negative tax
inflation adjustment, depending on the case, corresponding to the
first, second and third period commenced as from January 1, 2018,
which must be calculated in case of verifying the statements on the
foregoing paragraphs (a) y (b), shall be charged in a sixth for
that fiscal period and the remaining five sixths, equally, in the
immediately following fiscal periods.
At
December 31, 2019, such conditions have been already met.
Consequently, the current and deferred income tax have been booked
in the fiscal year ended December 31, 2019, including the effects
derived from the application of the tax inflation adjustment under
the terms established by the income tax law.
-69-
English translation of the consolidated financial statements
originally filed in Spanish with the Argentine Securities
Commission (“CNV”).
In case of discrepancy, the consolidated financial statements filed
with the CNV prevail over this translation
CENTRAL PUERTO S.A.
20.
Measures
in the Argentine economy
During
December 2019, the Central Bank of Argentina (“BCRA”)
issued Communication “A” 6854 and “A” 6856
whereby the regulations on Abroad and Exchange Rate issued by BCRA
were extended, which included regulations on exports, imports and,
especially, the previous BCRA’s authorization to access the
foreign Exchange market for the transference of profits and
dividends.
Afterwards, the
BCRA issued Communication “A” 7030 -in force as from
May 29, 2020- setting forth the following measures to be taken into
account regarding exchange matters:
a)
Access to the
Foreign Exchange Market for the payment of the import of goods and
services, profits and dividends, commercial interests, capital
interests and interests from financing activities, formation of
external assets of legal persons, among others, shall need the
previous authorization from BCRA, except if the following can be
put on record -in return format-:
i.
That the totality
of their holdings are in local financial entities and that they do
not have net external assets available (e.g., government
securities, shares not listed, demand accounts, etc.).
ii.
That they commit to
settle in the Foreign Exchange Market, within 5 working days of
their availability, those funds received abroad originated in the
collection of loans granted to third parties, the collection of a
term deposit or the sale of any kind of asset, provided the asset
was acquired, the deposit was made or the loan granted after May
28, 2020.
b)
A previous
authorization shall be required to BCRA for the payment of the
imports of goods (whether advanced or deferred) until June 30,
2020, taking into account the exceptions numbered in the
communication.
c)
BCRA’s
previous consent shall be required -until June 30, 2020- for the
access to the Foreign Exchange Market for the settlement of capital
services of financial indebtedness with foreign parties when the
creditor is a counterpart linked to the debtor.
d)
The restriction to
access the Foreign Exchange Market is extended to 90 previous days
and 90 subsequent days if the operations of purchase and sale of
government securities were settled in foreign currency or through
transference abroad, which was set forth by Communication
“A” 7001.
Afterwards, BCRA
issued Communication “B” 12020 whereby it communicated
the standardized procedure to facilitate and speed up the treatment
of requests of previous consent to access the Foreign Exchange
Market to pay the imports of goods, in accordance with
supplementary Communications “A” 7001 and
7030.
On June
25, 2020, BCRA issued Communication “A” 7052 whereby it
extended until July 31, 2020 the term described in the foregoing
paragraphs b) and) c and established that the following shall be
exempted from BCRA’s previous authorization: all deferred or
at-sight payments of the imports of goods corresponding to
operations shipped as from July 1, 2020 or those that having been
shipped before did not arrived to the country before that
date.
Through
successive communications, being Communication “A” 7151
the last one, the provisions on the foregoing paragraphs b) and c)
are still in force, the last extension being until March 31,
2021.
In
force as from September 16, 2020, Communication “A”
7106, issued by the BCRA, established, among other measures
referred to human persons, the need for refinancing the
international financial indebtedness for those loans from the
non-financial private sector with a creditor not being a related
counterparty of the debtor expiring between October 15, 2020 and
March 31, 2021. The involved legal entities shall submit
before
-70-
English translation of the consolidated financial statements
originally filed in Spanish with the Argentine Securities
Commission (“CNV”).
In case of discrepancy, the consolidated financial statements filed
with the CNV prevail over this translation
CENTRAL PUERTO S.A.
the
Central Bank a refinancing plan under certain criteria: that the
net amount for which the foreign exchange market will be accessed
in the original terms does not exceed 40% of the capital amount
expiring and that the remaining capital had been, as a minimum,
refinanced with a new external indebtedness with an average life of
2 years. This point shall not be applicable when indebtedness is
taken from international entities and official credit agencies,
among others. On February 25, 2021, through Communication
“A” 7230, BCRA broadened the regulation scope to all
those debt installments higher than USD 2 million becoming due
between April 1 and December 31, 2021. The effects of these
regulations for the Company are described in Note
10.3.3.
Finally, through
Communication “A” 7138, the BCRA established that as
from October 16, 2020, debit operations for a daily amount equal or
exceeding USD 50,000 or its equivalent shall be reported in the
Advances Informative Regime for Foreign Exchange Operations and
that the term stated in the regulation in force shall be fulfilled
before accessing the Foreign Exchange Market.
Moreover, on
December 23, 2019, Law no. 27,541 on “Social Solidarity and
Production Reactivation within the Public Emergency
framework” was published in the Official Gazette; and on
December 28, Decree no. 99/2019 was issued with the regulations for
the implementation of such law. The main measures in the law and
its regulations affecting the tax regime and the energy market are
the following:
Tax
obligations
a)
Income
tax
Law no.
27,430 had established that for the fiscal period commenced as from
January 1, 2020, the corporate rate of income statement would be
reduced from 30% to 25% and that the additional tax on dividends or
profits distributed to human persons of Argentina and abroad would
increase from 7% to 13%. Law no. 27,541 cancels that rate change
and keeps the original 30% and 7%, up to the fiscal periods
commencing January 1, 2021 inclusive.
b)
Tax
on an inclusive and supportive Argentina (“impuesto
PAIS” [Country tax])
With
emergency character and for the term of five fiscal periods, a tax
with a 30% rate is established on the operations related to the
acquisition of foreign currency for saving, purchase of goods and
services in foreign currency and international transport of
passengers. Such tax extends to all residents of Argentina, whether
human persons or business entities. The tax does not have the
character of payment on account of any tax.
Energy
Market
The Law
enables the Executive Branch to keep electricity and natural gas
rates under federal jurisdiction and to commence a re-negotiation
process for the revision of the integral rate in force or to start
an extraordinary revision as from the Law’s entering into
force date and for a maximum term of 180 days tending to a
reduction in the rate charge on homestead, stores and industries
for year 2020. Exercising delegated powers, the Argentine
Government announced the cancellation of all electricity and
natural gas rate update for the 180 days stated in the Law; this
cancellation was subsequently extended for another 180 days through
Decree No. 543/2020. In that sense, on February 27, 2020,
Resolution No. 31 issued by the Secretariat of Energy was
published, which resolution is described in Note
1.2.f).
It is
important to highlight the fact that these measures affect sales on
the spot market, but do not affect the agreements signed by the
Group with CAMMESA or other companies, which establish the
applicable rate table.
-71-
English translation of the consolidated financial statements
originally filed in Spanish with the Argentine Securities
Commission (“CNV”).
In case of discrepancy, the consolidated financial statements filed
with the CNV prevail over this translation
CENTRAL PUERTO S.A.
21.
Restrictions
on income distribution
Pursuant to the
General Legal Entities Law and the Bylaws, 5% of the profits made
during the fiscal year must be assigned to the statutory reserve
until such reserve reaches 20% of the Company’s Capital
Stock.
Within
the framework of the amendment to the loan agreement with Citibank
N.A., JP Morgan Chase Bank N.A. and Morgan Stanley Senior Funding
INC -described in Note 10.3.3-, there is a limitation for the
payment of dividends during 2021 and a dividends payment limitation
during 2022 of up to USD 25 million until 80% of the loan’s
principal and interest are paid.
22.
COVID-19
On
March 11, 2020, the World Health Organization characterized the
COVID-19 as a pandemic. Hence, several measures have been
undertaken by the Argentine government and other governments around
the globe; however, the virus continues to spread globally and, as
of the date of these financial statements, it has affected more
than 150 countries and territories around the world, including
Argentina. To date, the outbreak of the novel coronavirus has
caused significant social and market disruption. Any prolonged
restrictive measures put in place in order to control an outbreak
of a contagious disease or other adverse public health development
may have a material and adverse effect on the Group’s
business operations. It is unclear whether these challenges and
uncertainties will be contained or resolved, and what effects they
may have on the global political and economic conditions in the
long term.
Additionally, how
the disease will evolve in Argentina cannot be predicted, nor what
additional restrictions the Argentine government may impose can be
anticipated.
In this
regard, on March 20, 2020 the Argentine Government issued Decree
No. 297/2020 establishing a preventive and mandatory social
isolation policy (“the Quarantine” or
“ASPO” -for its acronym in Spanish-, indistinctly) as a
public health measure to contain the effects of the COVID-19
outbreak. Such decree established that persons must refrain from
going to their workplaces, and may not travel along routes, roads
or public spaces. As from the adoption of the Quarantine, the
government has extended it in many opportunities and it has ordered
the preventive and mandatory social distancing (“DISPO”
-for its acronym in Spanish-) in some jurisdictions. As of the date
of these financial statements, ASPO (temporarily and in certain
jurisdictions) and DISPO (in most of the country) are extended
until April 9, 2021.
At the
time, as additional measure to contain the virus in Argentina,
international travel was suspended (except for certain specific
repatriation flights).
Pursuant to Decree
297/2020, minimum shifts ensuring the operation and maintenance of
electric energy generators were exempted from the Quarantine.
Although operations personnel were allowed to continue their
activities, under certain health and sanitary precautions, the rest
of the personnel continued working remotely. Furthermore, on April
7, 2020, pursuant to Administrative Decision 468/2020 issued by the
Presidency of the Cabinet of Ministers, the construction of private
sector energy infrastructure was included within the activities
exempted from the ASPO.
Some of
the main identified impacts that this crisis has and may have in
the future for the Company are the following:
Operations
- Power generation
-
Reduction in the electric energy
dispatched. Due to the Quarantine, most of the businesses in
Argentina, especially in the industrial sector, have not been able
to continue operating normally. According
-72-
English translation of the consolidated financial statements
originally filed in Spanish with the Argentine Securities
Commission (“CNV”).
In case of discrepancy, the consolidated financial statements filed
with the CNV prevail over this translation
CENTRAL PUERTO S.A.
to
information from CAMMESA, at the beginning of Quarantine the total
electric energy demand had significantly declined. At the time,
this reduction had an impact in the Group´s thermal energy
generation, in particular our units with higher heat rate (less
efficient).
-
Increased delays in payments and/or risk of
uncollectability from the Group’s private clients.
Despite the fact that CAMMESA is paying its obligations, the
reduced economic activity due to the Quarantine may also affect the
cash flow of CAMMESA and our private clients and it may increase
the delays in their payments and the risk of uncollectability of
private clients.
-
Personnel safeguard. Multiple measures
to protect the health of all the Group´s operations and
maintenance personnel have been taken. Some of those measures
include: a) the isolation of the teams that operate the
Group’s different units preventing contact between different
teams, b) the avoidance of contact between personnel of different
shifts, c) the use of extra protection, and additional sanitary
measures, d) using virtual meetings, e) identify key personnel in
order to have the necessary back up teams should a contingency
arise, and keeping all non-essential personnel working remotely f)
drafting and publication of health and safety plans and/or
protocols both for the plants in operation and works in
development. These measures have been effective to protect the
Group’s personnel, and at the date of these financial
statements, a low contagion level has been registered within the
Group’s personnel.
-
Lack of necessary supplies/equipment, or delays
in supplies. The Quarantine may also affect the provision of
essential supplies. Although the provision of the necessary
supplies is also considered an essential activity under the enacted
emergency framework and usually a stock of spare parts is kept as
backup, the Company cannot assure that the provision of the
necessary supplies will not be affected. Furthermore, the measures
taken by foreign countries in which some of the Group’s
supplies and spare parts are produced, may also affect the
Group’s stock of spare parts. Any delay in the provision of
essential equipment or supplies may affect the Group’s
operations.
Projects
under construction/development
COVID-19 outbreak
has had an impact on the projects that were and are under
construction. Therefore, there have been delays in the completion
dates originally set.
Since
the issuance of Administrative Decision 468/2020 abovementioned,
the project construction activities were resumed. This required the
implementation of health safety measures according to the requests
established and recommended by health authorities. Regard being had
to the foregoing, a procedure and a protocol were drafted, which
have to be complied with by the personnel, contractors and
subcontractors.
Regarding wind farm
La Genoveva, on February 21, 2020, Vestas Argentina S.A. notified
the Group 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 Argentina S.A. did not specify the specific
impact this situation may have on the agreed upon schedule.
However, delays on the project’s completion are reasonably
expected. The Group sent a notice to CAMMESA reporting the updates
received from Vestas Argentina S.A., in accordance with the force
majeure clauses of the Supply of Renewable Electrical Energy
entered into with CAMMESA described in Note 18.6, in order to avoid
potential penalties should the project suffer unexpected and
unforeseen delays. On April 7, 2020, CAMMESA acknowledged receipt
of that notice and asked for a report on the consequences that the
force majeure events have had on the schedule of the project. The
construction of the wind farm has been resumed on April 9, 2020.
Since then, the Company has sent to CAMMESA several notices
informing: on the one hand, the impact this force majeure event had
on the project and the measures taken within the COVID-19 protocol
abovementioned; and on the other hand, reiterating the request of
not receiving sanctions for the evidenced delays, as well as the
request to obtain an extension in the commercial operation date of
the
-73-
English translation of the consolidated financial statements
originally filed in Spanish with the Argentine Securities
Commission (“CNV”).
In case of discrepancy, the consolidated financial statements filed
with the CNV prevail over this translation
CENTRAL PUERTO S.A.
wind
farm. The main events impacting on the project execution schedule
are the following: i) delays in the international manufacturing and
delivery, ii) delays in the manufacturing and/or supply of local
equipment, components and parts, iii) restrictions on the transport
of material and components, iv) restrictions on the working methods
due to compliance with COVID-19 health protocols that reduce the
productivity of processes and tasks, and v) the borders lockdown
that prevent foreign specialists from entering to conduct assembly
or installation processes and for the start-up. In this regard, on
June 10, 2020, the Secretariat of Energy ordered CAMMESSA to
temporarily suspend the calculation of the terms set forth for
those projects that had not obtained the commercial authorization,
among which wind farm La Genoveva is included, for a maximum
postponement term of six months from March 12 to September 12,
2020. Therefore, the committed commercial authorization of the wind
farm was extended until November 22, 2020. Finally, as per Note
18.6, on November 21, 2020, the commercial authorization for the
total capacity of the farm was granted.
The
Quarantine also affected the construction of the Terminal 6-San
Lorenzo thermal plant described in Note 18.7. After the Quarantine
was lifted according to Administrative Decision 468/2020,
construction was resumed on April 27, 2020. Additionally, as
mentioned above, travel restrictions and national borders lockdown
imposed by the government, among others, may delay the arrival of
necessary personnel for the project, some of which were expected to
arrive from countries affected by the outbreak. The Company
notified CAMMESA and the Energy Secretariat on the situation and
requested: (i) the suspension of agreement terms as from March 20,
2020 and until the situation is normalized, and (ii) the
non-application of sanctions for the case in which the Company
cannot comply with the committed dates on the Wholesale Demand
Agreement entered into with CAMMESA mentioned in Note 18.7, so as
to avoid possible sanctions stemming from a delay in the completion
of the project due to unforeseen and inevitable reasons. In this
sense, on June 10, 2020, the Secretariat of Energy ordered CAMMESSA
to temporarily suspend the calculation of the terms set forth for
those projects that had not obtained the commercial authorization,
among which the cogeneration station Terminal 6 - San Lorenzo is
included, for a maximum postponement term of six months from March
12 to September 12, 2020. Therefore, the committed commercial
authorization of the wind farm was extended until March 5, 2021. On
July 15, 2020, the Company communicated the Secretariat of Energy,
with copy to CAMMESA, that the temporary suspension of the terms is
not sufficient to comply with the new terms under the Wholesale
Demand Agreement since the numerous measures adopted due to
COVID-19 generated a strong slowdown in all the activities related
to the work of the cogeneration unit Terminal 6 - San Lorenzo.
Dated September 10, 2020, the Undersecretariat of Electrical Energy
granted a new suspension of the terms for the commercial
authorization of the projects between September 12, 2020 and
November 25, 2020, being subject to certain requirements to be
fulfilled before CAMMESA. The Company has requested, both CAMMESA
and the Secretariat of Energy, the extension of the new commercial
authorization of the project “Terminal 6 - San Lorenzo”
until July 30, 2021. On November 21, 2020, the open cycle
commercial operation started. As of the date of these financial
statements the necessary works for finishing the project are in
course.
The
effects of the Covid-19 crisis pose challenges to the closing of
the combined cycle at the Brigadier López plant, delaying the
start of construction of such project, not only because of the
restrictions to the construction mentioned above, but also due to
lower energy demand and difficulties to obtain the necessary
financing for projects in the current market
situation.
In
addition, the Covid-19 crisis may reduce the possibility of new
projects that would enable the use of the gas turbines included
under "Gas turbines" item within property, plant and equipment and
under "Property, plant and equipment available for sale"
item.
Access
to Capital Markets
Due to
the outbreak of COVID-19, access to the capital and financial
markets in Argentina and/or in foreign markets may also be
substantially reduced. Although cash flow and liquidity of the
Group is deemed sufficient to meet the working capital, debt
service obligations and capital expenditure requirements, any
further deterioration of the current economic situation may result
in a deterioration of the Company´s finances, in a context of
lack of access or substantial reduction of credit availability in
the financial markets.
-74-
English translation of the consolidated financial statements
originally filed in Spanish with the Argentine Securities
Commission (“CNV”).
In case of discrepancy, the consolidated financial statements filed
with the CNV prevail over this translation
CENTRAL PUERTO S.A.
Natural
gas distribution operating segment
Additionally, the
Covid-19 pandemic crisis may also affect the natural gas
distribution associate’s income (ECOGAS Group). Although such
economic activity was exempt from the Quarantine, the economic
downturn as a consequence of this measure is expected to reduce the
volumes distributed to the clients. Moreover, some measures adopted
by the Argentine government to mitigate the effects of the Covid-19
outbreak in the economy are also expected to affect ECOGAS Group
financial performance. For example, the government has ruled a
180-day period, starting on March 1, 2020, where the suspension of
the natural gas service is not permitted, upon certain
circumstances and limited to certain users; that period was
subsequently extended until December 31, 2020. Moreover, tariff
increases are suspended until March 15, 2021.
The
Group will continue taking all the available measures to mitigate
the effects that the Covid-19 pandemic crisis has or may have on
the operations, the projects undergoing and the Group´s
financial position.
23.
Subsequent
events
No
facts or operations occurred between the closing date of the fiscal
year and the date of issuance of these financial statements that
may significantly affect such financial statements.
-75-
English translation of the consolidated financial statements
originally filed in Spanish with the Argentine Securities
Commission (“CNV”).
In case of discrepancy, the consolidated financial statements filed
with the CNV prevail over this translation
EXHIBIT A
1 of 2
CENTRAL PUERTO S.A.
PROPERTY, PLANT AND EQUIPMENT
AS OF DECEMBER 31, 2020
|
|
Cost
|
|
|
||||||
|
|
At the beginning
|
|
Additions
|
|
Transfers
|
|
Disposals
|
|
At the end
|
|
|
ARS 000
|
|
ARS 000
|
|
ARS 000
|
|
ARS 000
|
|
ARS 000
|
|
|
|
|
|
|
|
|
|
|
|
|
Lands
and buildings
|
8,594,860
|
|
5,165
|
|
1,207,819
|
|
-
|
|
9,807,844
|
|
Electric power
facilities
|
59,872,775
|
|
104,185
|
|
9,950,779
|
|
-
|
|
69,927,739
|
|
Wind
turbines
|
13,445,671
|
|
-
|
|
9,782,105
|
|
-
|
|
23,227,776
|
|
Gas
turbines
|
6,593,598
|
|
-
|
|
(4,067,667)
|
|
-
|
|
2,525,931
|
|
Construction in
progress (1)
|
31,014,731
|
|
11,223,599
|
|
(21,527,659)
|
|
-
|
|
20,710,671
|
|
Other
|
3,327,397
|
|
119,375
|
|
532,835
|
|
(1,548)
|
|
3,978,059
|
|
Total
|
122,849,032
|
|
11,452,324
|
|
(4,121,788) (2)
|
|
(1,548)
|
|
130,178,020
|
|
|
Depreciation and impairment
|
|
|
||||||||
|
|
At the beginning
|
|
Charges
|
|
Disposals and impairment
|
|
Transfers
|
|
At the end
|
|
Net book value
|
|
|
ARS 000
|
|
ARS 000
|
|
ARS 000
|
|
ARS 000
|
|
ARS 000
|
|
ARS 000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lands
and buildings
|
1,198,700
|
|
223,697
|
|
-
|
|
-
|
|
1,422,397
|
|
8,385,447
|
|
Electric power
facilities
|
36,444,878
|
|
2,466,011
|
|
-
|
|
-
|
|
38,910,889
|
|
31,016,850
|
|
Wind
turbines
|
609,707
|
|
907,830
|
|
-
|
|
-
|
|
1,517,537
|
|
21,710,239
|
|
Gas
turbines
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
2,525,931
|
|
Impairment of gas
turbines (3)
|
1,695,826
|
|
-
|
|
1,500,186
|
|
(1,708,216)
|
|
1,487,796
|
|
(1,487,796)
|
|
Impairment of
electric power facilities, lands and buildings, construction in
progress and others (3)
|
2,834,360
|
|
(81,634)
|
|
1,916,915
|
|
-
|
|
4,669,641
|
|
(4,669,641)
|
|
Construction in
progress
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
20,710,671
|
|
Other
|
2,878,295
|
|
104,770
|
|
-
|
|
-
|
|
2,983,065
|
|
994,994
|
|
Total
|
45,661,766
|
|
3,620,674
|
|
3,417,101
|
|
(1,708,216) (4)
|
|
50,991,325
|
|
79,186,695
|
(1)
The Group has
capitalized borrowing costs for a total amount of 303,299 during
the year ended December 31, 2020.
(2)
Includes 54,121
transferred to intangible assets related to transmission lines and
electrical substations that were transferred to electric energy
transport companies and 4,067,667 transferred to item "property,
plant and equipment available for sale" (see Note
18.5).
(3)
See Note
2.3.8.
(4)
Transferred to item
"property, plant and equipment available for sale" (see Note
18.5).
-76-
English translation of the consolidated financial statements
originally filed in Spanish with the Argentine Securities
Commission (“CNV”).
In case of discrepancy, the consolidated financial statements filed
with the CNV prevail over this translation
EXHIBIT A
2 of 2
CENTRAL PUERTO S.A.
PROPERTY, PLANT AND EQUIPMENT
AS OF DECEMBER 31, 2019
|
|
Cost
|
|
|
||||||
|
|
At the beginning
|
|
Additions
|
|
Transfers
|
|
Disposals
|
|
At the end
|
|
|
ARS 000
|
|
ARS 000
|
|
ARS 000
|
|
ARS 000
|
|
ARS 000
|
|
|
|
|
|
|
|
|
|
|
|
|
Lands
and buildings
|
5,741,439
|
|
1,440,902
|
|
1,412,519
|
|
-
|
|
8,594,860
|
|
Electric power
facilities
|
47,508,461
|
|
11,539,267
|
|
825,047
|
|
-
|
|
59,872,775
|
|
Wind
turbines
|
7,371,556
|
|
-
|
|
6,074,115
|
|
-
|
|
13,445,671
|
|
Gas
turbines
|
11,124,709
|
|
-
|
|
(4,531,111)
|
|
-
|
|
6,593,598
|
|
Construction in
progress (1)
|
10,723,987
|
|
24,117,611
|
|
(3,826,867)
(2)
|
|
-
|
|
31,014,731
|
|
Other
|
3,245,401
|
|
85,152
|
|
90
|
|
(3,246)
|
|
3,327,397
|
|
Total
|
85,715,553
|
|
37,182,932
|
|
(46,207)
|
|
(3,246)
|
|
122,849,032
|
|
|
Depreciation and impairment
|
|
|
||||||
|
|
At the beginning
|
|
Charges
|
|
Disposals and
impairment
|
|
At the end
|
|
Net book value
|
|
|
ARS 000
|
|
ARS 000
|
|
ARS 000
|
|
ARS 000
|
|
ARS 000
|
|
|
|
|
|
|
|
|
|
|
|
|
Lands
and buildings
|
1,027,859
|
|
170,841
|
|
-
|
|
1,198,700
|
|
7,396,160
|
|
Electric power
facilities
|
34,434,565
|
|
2,010,313
|
|
-
|
|
36,444,878
|
|
23,427,897
|
|
Wind
turbines
|
163,359
|
|
446,348
|
|
-
|
|
609,707
|
|
12,835,964
|
|
Gas
turbines
|
-
|
|
-
|
|
-
|
|
-
|
|
6,593,598
|
|
Impairment of gas
turbines (3)
|
-
|
|
-
|
|
1,695,826
|
|
1,695,826
|
|
(1,695,826)
|
|
Impairment of
electric power facilities and construction in progress (3)
|
-
|
|
-
|
|
2,834,360
|
|
2,834,360
|
|
(2,834,360)
|
|
Construction in
progress
|
-
|
|
-
|
|
-
|
|
-
|
|
31,014,731
|
|
Other
|
2,827,456
|
|
54,082
|
|
(3,243)
|
|
2,878,295
|
|
449,102
|
|
Total
|
38,453,239
|
|
2,681,584
|
|
4,526,943
|
|
45,661,766
|
|
77,187,266
|
(1)
The Group has
capitalized borrowing costs for a total amount of 231,235 during
the year ended December 31, 2019.
(2)
Includes 4,146,562
transferred from gas turbines to construction in progress because
the gas turbines were used in the co-generation project
“Terminal 6 San Lorenzo”, and (46,207) transferred to
intangible assets related to transmissions lines and electrical
substations that were transferred to electric energy transport
companies.
(3)
See Note
2.3.8.
-77-
English translation of the consolidated financial statements
originally filed in Spanish with the Argentine Securities
Commission (“CNV”).
In case of discrepancy, the consolidated financial statements filed
with the CNV prevail over this translation
EXHIBIT
B
CENTRAL PUERTO S.A.
INTANGIBLE ASSETS
AS OF DECEMBER 31, 2020 AND 2019
|
|
2020
|
||||||
|
|
Cost
|
||||||
|
|
At the beginning
|
|
Additions
|
|
Transfers
|
|
At the end
|
|
|
ARS 000
|
|
ARS 000
|
|
ARS 000
|
|
ARS 000
|
|
|
|
|
|
|
|
|
|
|
Concession
right
|
16,554,782
|
|
-
|
|
-
|
|
16,554,782
|
|
Transmission lines
and electrical substations for wind farms
|
1,295,030
|
|
-
|
|
54,121
(1)
|
|
1,349,151
|
|
Turbogas and
turbosteam supply agreements for thermal station Brigadier
López (“BL contracts”)
|
8,296,920
|
|
-
|
|
-
|
|
8,296,920
|
|
Total
2020
|
26,146,732
|
|
-
|
|
54,121
|
|
26,200,853
|
|
Total
2019
|
17,803,605
|
|
8,296,920
|
|
46,207 (1)
|
|
26,146,732
|
|
|
|
|
|
|
|
|
|
|
|
2020
|
|
2019
|
||||||||||
|
|
Amortization and impairment
|
|
|
|
|
||||||||
|
|
At the beginning
|
|
%
|
|
Charges
|
|
Impairment
|
|
At the end
|
|
Net book value
|
|
Net book value
|
|
|
ARS 000
|
|
|
|
ARS 000
|
|
ARS 000
|
|
ARS 000
|
|
ARS 000
|
|
ARS 000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Concession
right
|
13,793,866
|
|
3.3
|
|
690,229
|
|
-
|
|
14,484,095
|
|
2,070,687
|
|
2,760,916
|
|
Transmission lines
and electrical substations for wind farms
|
105,624
|
|
5.0
|
|
66,977
|
|
-
|
|
172,601
|
|
1,176,550
|
|
1,189,406
|
|
Turbogas and
turbosteam supply agreements for thermal station Brigadier
López (“BL contracts”)
|
1,157,706
|
|
30.8 (3)
|
|
1,984,641
|
|
-
|
|
3,142,347
|
|
5,154,573
|
|
7,139,214
|
|
BL
contracts impairment (2)
|
1,466,048
|
|
|
|
(407,548)
|
|
599,204
|
|
1,657,704
|
|
(1,657,704)
|
|
(1,466,048)
|
|
Total
2020
|
16,523,244
|
|
|
|
2,334,299
|
|
599,204
|
|
19,456,747
|
|
6,744,106
|
|
|
|
Total
2019
|
13,145,723
|
|
|
|
1,911,474
|
|
1,466,047
|
|
16,523,244
|
|
|
|
9,623,488
|
(1)
Transferred from
property, plant and equipment. See Note 12.
(2)
See Note
2.3.8.
(3)
Related to turbogas
supply agreement.
-78-
English translation of the consolidated financial statements
originally filed in Spanish with the Argentine Securities
Commission (“CNV”).
In case of discrepancy, the consolidated financial statements filed
with the CNV prevail over this translation
EXHIBIT C
CENTRAL PUERTO S.A.
EQUITY INTERESTS IN ASSOCIATES
AS OF DECEMBER 31, 2020 AND 2019
|
|
|
2020
|
|
2019
|
||||||||||||
|
Name and characteristics
of securities and issuers
|
|
Class
|
|
Face value
|
|
Quantity
|
|
Listed Price
|
|
Value obtained by the equity method
|
|
Share in the profit of associates
|
|
Book value
|
|
Book value
|
|
|
|
|
|
|
|
|
|
|
|
ARS 000
|
|
ARS 000
|
|
ARS 000
|
|
ARS 000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INVESTMENT IN ASSOCIATES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Termoeléctrica
José de San Martín S.A.
|
|
1
vote
|
|
1
|
|
152,378
|
|
None
|
|
39,811
|
|
26,343
|
|
39,811
|
|
88,419
|
|
Termoeléctrica
Manuel Belgrano S.A.
|
|
1
vote
|
|
1
|
|
152,378
|
|
None
|
|
27,070
|
|
(719)
|
|
27,070
|
|
95,075
|
|
ECOGAS
Group
|
|
1
vote
|
|
10
|
|
(a)
|
|
None
|
|
4,482,447
|
|
98,988
|
|
4,482,447
|
|
4,383,459
|
|
Transportadora
de Gas del Mercosur S.A.
|
|
1
vote
|
|
-
|
|
8,702,400
|
|
None
|
|
114,669
|
|
(15,862)
|
|
114,669
|
|
130,530
|
|
Other
|
|
-
|
|
-
|
|
-
|
|
-
|
|
8
|
|
-
|
|
8
|
|
142
|
|
|
|
|
|
|
|
|
|
|
|
|
|
108,750
|
|
4,664,005
|
|
4,697,625
|
a)
5,999,022 IGCE shares and 27,598,637 DGCE shares.
|
|
|
Last available financial information
|
||||||||
|
Name and characteristics
of securities and issuers
|
|
Date
|
|
Capital stock
|
|
Income (loss)
|
|
Equity
|
|
Direct and indirect equity interest %
|
|
|
|
|
|
ARS 000
|
|
ARS 000
|
|
ARS 000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Termoeléctrica
José de San Martín S.A.
|
|
12/31/2020
|
|
7,078
|
|
87,400
|
|
128,941
|
|
30.88%
|
|
Termoeléctrica
Manuel Belgrano S.A.
|
|
12/31/2020
|
|
7,078
|
|
(2,323)
|
|
87,473
|
|
30.95%
|
|
ECOGAS
Group:
|
|
|
|
|
|
|
|
|
|
|
|
Distribuidora de
Gas del Centro S.A.
|
|
12/31/2020
|
|
160,457
|
|
(176,754)
|
|
10,465,618
|
|
17.20%
|
|
IGCE
|
|
12/31/2020
|
|
141,787
|
|
(107,195)
|
|
11,841,642
|
|
42.31%
|
|
Transportadora
de Gas del Mercosur S.A.
|
|
12/31/2020
|
|
43,512
|
|
(28,374)
|
|
506,939
|
|
20.00%
|
-79-
English translation of the consolidated financial statements
originally filed in Spanish with the Argentine Securities
Commission (“CNV”).
In case of discrepancy, the consolidated financial statements filed
with the CNV prevail over this translation
EXHIBIT D
CENTRAL PUERTO S.A.
INVESTMENTS
AS OF DECEMBER 31, 2020 AND 2019
|
|
|
2020
|
|
2019
|
||
|
Name and characteristics of securities
|
|
Currency
|
|
Book value
|
|
Book value
|
|
|
|
|
|
ARS 000
|
|
ARS 000
|
|
|
|
|
|
|
|
|
|
CURRENT
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial
assets at fair value through profit or loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Public
debt securities
|
|
ARS
|
|
9,994,857
|
|
4,714,779
|
|
|
|
USD
|
|
2,151,883
|
|
-
|
|
Mutual
funds
|
|
ARS
|
|
333,946
|
|
5,766,320
|
|
|
|
USD
|
|
455,345
|
|
-
|
|
Stocks
and corporate bonds
|
|
ARS
|
|
776,207
|
|
-
|
|
|
|
EUR
|
|
227,896
|
|
-
|
|
|
|
USD
|
|
136,175
|
|
-
|
|
|
|
|
|
14,076,309
|
|
10,481,099
|
|
|
|
|
|
14,076,309
|
|
10,481,099
|
ARS:
Argentine Peso.
USD: US
Dollar.
EUR:
Euros.
-80-
English translation of the consolidated financial statements
originally filed in Spanish with the Argentine Securities
Commission (“CNV”).
In case of discrepancy, the consolidated financial statements filed
with the CNV prevail over this translation
EXHIBIT E
CENTRAL PUERTO S.A.
ALLOWANCES AND PROVISIONS
AS OF DECEMBER 31, 2020 AND 2019
|
|
|
2020
|
|
2019
|
||||||||
|
Item
|
|
At beginning
|
|
Increases
|
|
Decreases
|
|
Recoveries
|
|
At end
|
|
At end
|
|
|
|
ARS 000
|
|
ARS 000
|
|
ARS 000
|
|
ARS 000
|
|
ARS 000
|
|
ARS 000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventories
|
|
168,330
|
|
42,935
|
|
(44,686)
(1)
|
|
-
|
|
166,579
|
|
168,330
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade
and other receivables
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for
doubtful accounts - Trade receivables
|
|
17,083
|
|
11,566
|
|
(5,674)
(1)
|
|
(9,108)
|
|
13,867
|
|
17,083
|
|
Total
2020
|
|
185,413
|
|
54,501
|
|
(50,360)
|
|
(9,108)
|
|
180,446
|
|
|
|
Total
2019
|
|
200,589
|
|
55,206
|
|
(70,382) (1)
|
|
-
|
|
|
|
185,413
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provisions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for
lawsuits and claims
|
|
37,379
|
|
10,272
|
|
(10,897)
(1)
|
|
(1,899)
|
|
34,855
|
|
37,379
|
|
Total
2020
|
|
37,379
|
|
10,272
|
|
(10,897)
|
|
(1,899)
|
|
34,855
|
|
|
|
Total
2019
|
|
1,125,676
|
|
7,191
|
|
(1,095,488) (2)
|
|
-
|
|
|
|
37,379
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for wind
farms dismantling
|
|
12,512
|
|
36,055
|
|
(3,164)
(1)
|
|
-
|
|
45,403
|
|
12,512
|
|
Total
2020
|
|
12,512
|
|
36,055
|
|
(3,164)
|
|
-
|
|
45,403
|
|
|
|
Total
2019
|
|
-
|
|
12,512
|
|
-
|
|
-
|
|
|
|
12,512
|
(1)
Income (loss) for
exposure to change in purchasing power of currency for the
year.
(2)
1,073,576 relates
to the adoption of IFRC 23, as described in Note 2.3.5. The
remaining effect relates to the loss for exposure to change in
purchasing power of currency for the year.
-81-
English translation of the consolidated financial statements
originally filed in Spanish with the Argentine Securities
Commission (“CNV”).
In case of discrepancy, the consolidated financial statements filed
with the CNV prevail over this translation
EXHIBIT F
CENTRAL PUERTO S.A.
COST OF SALES
AS OF DECEMBER 31, 2020 AND 2019
|
|
2020
|
|
2019
|
|
|
ARS 000
|
|
ARS 000
|
|
|
|
|
|
|
Inventories at
beginning of each year
|
1,091,527
|
|
619,038
|
|
|
|
|
|
|
Purchases and
operating expenses for each year:
|
|
|
|
|
|
|
|
|
|
Purchases
|
3,650,420
|
|
14,143,878
|
|
Operating expenses
(Exhibit H)
|
13,535,804
|
|
12,136,338
|
|
|
17,186,224
|
|
26,280,216
|
|
|
|
|
|
|
Inventories at the
end of each year
|
(1,462,347)
|
|
(1,091,527)
|
|
Total
|
16,815,404
|
|
25,807,727
|
-82-
EXHIBIT G
CENTRAL PUERTO S.A.
FINANCIAL ASSETS AND LIABILITIES IN FOREIGN CURRENCY
AS OF DECEMBER 31, 2020 AND 2019
|
|
|
2020
|
|
2019
|
||||||||
|
Account
|
|
Currency and amount
(in thousands)
|
|
Effective exchange rate (1)
|
|
Book
value
|
|
Currency and amount
(in thousands)
|
|
Book
value
|
||
|
|
|
|
|
|
|
|
ARS 000
|
|
|
|
|
ARS 000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-CURRENT ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade
and other receivables
|
|
USD
|
347,214
|
|
84.15
(2)
|
|
29,218,050
|
|
USD
|
404,860
|
|
33,012,869
|
|
|
|
|
|
|
|
|
29,218,050
|
|
|
|
|
33,012,869
|
|
CURRENT ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
and cash equivalents
|
|
USD
|
3,016
|
|
83.95
|
|
253,193
|
|
USD
|
29,834
|
|
2,424,379
|
|
|
|
EUR
|
2
|
|
103.07
|
|
206
|
|
EUR
|
1
|
|
91
|
|
Other
financial assets
|
|
USD
|
32,679
|
|
83.95
|
|
2,743,403
|
|
USD
|
97,220
|
|
7,900,297
|
|
|
|
EUR
|
2,211
|
|
103.07
|
|
227,896
|
|
-
|
-
|
|
-
|
|
Trade
and other receivables
|
|
USD
|
67,034
|
|
84.15
(2)
|
|
5,640,913
|
|
USD
|
79,002
|
|
6,441,940
|
|
|
|
USD
|
16,313
|
|
83.95
|
|
1,369,476
|
|
USD
|
8,837
|
|
718,116
|
|
|
|
|
|
|
|
|
10,235,087
|
|
|
|
|
17,484,823
|
|
|
|
|
|
|
|
|
39,453,137
|
|
|
|
|
50,497,692
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-CURRENT LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
and borrowings
|
|
USD
|
376,638
|
|
84.15
|
|
31,694,088
|
|
USD
|
532,441
|
|
43,412,362
|
|
|
|
|
|
|
|
|
31,694,088
|
|
|
|
|
43,412,362
|
|
CURRENT LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
and borrowings
|
|
USD
|
215,618
|
|
84.15
|
|
18,144,255
|
|
USD
|
110,804
|
|
9,034,360
|
|
Trade
and other payables
|
|
USD
|
19,192
|
|
84.15
|
|
1,615,007
|
|
USD
|
22,537
|
|
1,837,545
|
|
|
|
EUR
|
121
|
|
103.53
|
|
12,527
|
|
EUR
|
291
|
|
26,633
|
|
|
|
|
|
|
|
|
19,771,789
|
|
|
|
|
10,898,538
|
|
|
|
|
|
|
|
|
51,465,877
|
|
|
|
|
54,310,900
|
USD: US
dollar.
EUR:
Euro.
(1)
At the exchange
rate prevailing as of December 31, 2020 as per the Argentine
National Bank.
(2)
At the exchange
rate according to Communication “A” 3500 (wholesale)
prevailing as of December 31, 2020 as per the Argentine Central
Bank.
-83-
English translation of the consolidated financial statements
originally filed in Spanish with the Argentine Securities
Commission (“CNV”).
In case of discrepancy, the consolidated financial statements filed
with the CNV prevail over this translation
EXHIBIT
H
1
of 2
CENTRAL PUERTO S.A.
INFORMATION REQUIRED BY LAW 19,550, ART. 64, PARAGRAPH I,
SUBSECTION b)
AS OF DECEMBER 31, 2020 AND 2019
|
|
|
2020
|
||||
|
Accounts
|
|
Operating expenses
|
|
Administrative and selling expenses
|
|
Total
|
|
|
|
ARS 000
|
|
ARS 000
|
|
ARS 000
|
|
|
|
|
|
|
|
|
|
Compensation to
employees
|
|
2,890,592
|
|
1,089,988
|
|
3,980,580
|
|
Other
long-term employee benefits
|
|
104,394
|
|
22,490
|
|
126,884
|
|
Depreciation of
property, plant and equipment
|
|
3,620,674
|
|
-
|
|
3,620,674
|
|
Amortization of
intangible assets
|
|
2,334,299
|
|
-
|
|
2,334,299
|
|
Purchase of energy
and power
|
|
143,435
|
|
-
|
|
143,435
|
|
Fees
and compensation for services
|
|
939,144
|
|
795,693
|
|
1,734,837
|
|
Maintenance
expenses
|
|
1,762,492
|
|
188,738
|
|
1,951,230
|
|
Consumption of
materials and spare parts
|
|
512,160
|
|
-
|
|
512,160
|
|
Insurance
|
|
716,242
|
|
31,585
|
|
747,827
|
|
Levies
and royalties
|
|
448,404
|
|
-
|
|
448,404
|
|
Taxes
and assessments
|
|
51,550
|
|
353,682
|
|
405,232
|
|
Tax on
bank account transactions
|
|
6,546
|
|
449,234
|
|
455,780
|
|
Others
|
|
5,872
|
|
41,193
|
|
47,065
|
|
Total
|
|
13,535,804
|
|
2,972,603
|
|
16,508,407
|
|
|
|
|
|
|
|
|
-84-
English translation of the consolidated financial statements
originally filed in Spanish with the Argentine Securities
Commission (“CNV”).
In case of discrepancy, the consolidated financial statements filed
with the CNV prevail over this translation
EXHIBIT
H
2
of 2
CENTRAL
PUERTO S.A.
INFORMATION
REQUIRED BY LAW 19,550, ART. 64, PARAGRAPH I, SUBSECTION
b)
AS
OF DECEMBER 31, 2020 AND 2019
|
|
|
2019
|
||||
|
Accounts
|
|
Operating expenses
|
|
Administrative and selling expenses
|
|
Total
|
|
|
|
ARS 000
|
|
ARS 000
|
|
ARS 000
|
|
|
|
|
|
|
|
|
|
Compensation to
employees
|
|
3,225,925
|
|
1,188,407
|
|
4,414,332
|
|
Other
long-term employee benefits
|
|
93,700
|
|
9,516
|
|
103,216
|
|
Depreciation of
property, plant and equipment
|
|
2,681,250
|
|
334
|
|
2,681,584
|
|
Amortization of
intangible assets
|
|
1,934,797
|
|
-
|
|
1,934,797
|
|
Purchase of energy
and power
|
|
127,500
|
|
-
|
|
127,500
|
|
Fees
and compensation for services
|
|
580,305
|
|
1,010,261
|
|
1,590,566
|
|
Maintenance
expenses
|
|
1,788,105
|
|
186,095
|
|
1,974,200
|
|
Consumption of
materials and spare parts
|
|
642,269
|
|
-
|
|
642,269
|
|
Insurance
|
|
469,846
|
|
17,848
|
|
487,694
|
|
Levies
and royalties
|
|
523,254
|
|
-
|
|
523,254
|
|
Taxes
and assessments
|
|
46,248
|
|
273,365
|
|
319,613
|
|
Tax on
bank account transactions
|
|
6,704
|
|
855,446
|
|
862,150
|
|
Others
|
|
16,435
|
|
43,861
|
|
60,296
|
|
Total
|
|
12,136,338
|
|
3,585,133
|
|
15,721,471
|
-1-
English translation of the consolidated financial statements
originally filed in Spanish with the Argentine Securities
Commission (“CNV”).
In case of discrepancy, the consolidated financial statements filed
with the CNV prevail over this translation
CENTRAL
PUERTO S.A.
SEPARATE
STATEMENT OF INCOME
for
the year ended December 31, 2020
|
|
2020
|
|
2019
|
|
|
ARS 000
|
|
ARS 000
|
|
|
|
|
|
|
Revenues
|
30,170,401
|
|
44,116,038
|
|
Cost of
sales
|
(14,489,722)
|
|
(24,379,708)
|
|
Gross
income
|
15,680,679
|
|
19,736,330
|
|
|
|
|
|
|
Administrative and
selling expenses
|
(2,575,460)
|
|
(3,223,183)
|
|
Other
operating income
|
13,754,396
|
|
24,882,034
|
|
Other
operating expenses
|
(382,234)
|
|
(38,872)
|
|
Impairment of
property, plant and equipment and intangible assets
|
(4,016,305)
|
|
(5,996,233)
|
|
Operating
income
|
22,461,076
|
|
35,360,076
|
|
|
|
|
|
|
Loss on
net monetary position
|
(4,967,931)
|
|
(9,122,017)
|
|
Finance
income
|
4,523,648
|
|
4,811,805
|
|
Finance
expenses
|
(12,176,334)
|
|
(13,172,381)
|
|
Share
of the profit of associates and subsidiaries
|
746,799
|
|
730,171
|
|
Income
before income tax
|
10,587,258
|
|
18,607,654
|
|
|
|
|
|
|
Income
tax for the year
|
(3,695,337)
|
|
(6,615,281)
|
|
Net
income for the year
|
6,891,921
|
|
11,992,373
|
|
|
|
|
|
|
|
|
|
|
|
- Basic
and diluted earnings per share (ARS)
|
4.58
|
|
7.97
|
-2-
English translation of the consolidated financial statements
originally filed in Spanish with the Argentine Securities
Commission (“CNV”).
In case of discrepancy, the consolidated financial statements filed
with the CNV prevail over this translation
CENTRAL
PUERTO S.A.
SEPARATE
STATEMENT OF COMPREHENSIVE INCOME
for
the year ended December 31, 2020
|
|
2020
|
|
2019
|
|
|
ARS 000
|
|
ARS 000
|
|
|
|
|
|
|
|
|
|
|
|
Net income for the year
|
6,891,921
|
|
11,992,373
|
|
|
|
|
|
|
Other
comprehensive income for the year
|
|
|
|
|
|
|
|
|
|
Other
comprehensive income (loss) not to be reclassified to income in
subsequent periods
|
|
|
|
|
|
|
|
|
|
Remeasurement
of losses from long-term employee benefits
|
7,471
|
|
(59,403)
|
|
Income
tax related to remeasurement of losses from long-term employee
benefits
|
(1,967)
|
|
15,742
|
|
Other
comprehensive income (loss) not to be reclassified to income in
subsequent periods
|
5,504
|
|
(43,661)
|
|
Other
comprehensive income for the year
|
5,504
|
|
(43,661)
|
|
Total
comprehensive income for the year
|
6,897,425
|
|
11,948,712
|
-3-
English translation of the consolidated financial statements
originally filed in Spanish with the Argentine Securities
Commission (“CNV”).
In case of discrepancy, the consolidated financial statements filed
with the CNV prevail over this translation
CENTRAL
PUERTO S.A.
SEPARATE
STATEMENT OF FINANCIAL POSITION
as
at December 31, 2020
|
|
Notes
|
|
2020
|
|
2019
|
|
|
|
|
ARS 000
|
|
ARS 000
|
|
Assets
|
|
|
|
|
|
|
Non-current assets
|
|
|
|
|
|
|
Property, plant and
equipment
|
|
|
50,412,460
|
|
52,570,913
|
|
Intangible
assets
|
|
|
5,567,564
|
|
8,434,085
|
|
Investment in
associates
|
|
|
4,664,005
|
|
4,697,493
|
|
Investment in
subsidiaries
|
Exhibit
C
|
|
9,685,988
|
|
6,292,285
|
|
Trade
and other receivables
|
|
|
29,400,051
|
|
33,012,927
|
|
Other
non-financial assets
|
|
|
197,745
|
|
179,447
|
|
Other
financial assets
|
|
|
452,169
|
|
4,154,018
|
|
Inventories
|
|
|
658,121
|
|
196,273
|
|
|
|
|
101,038,103
|
|
109,537,441
|
|
Current assets
|
|
|
|
|
|
|
Inventories
|
|
|
786,172
|
|
886,021
|
|
Other
non-financial assets
|
|
|
230,967
|
|
922,024
|
|
Trade
and other receivables
|
|
|
13,567,868
|
|
19,273,020
|
|
Other
financial assets
|
|
|
11,889,831
|
|
5,041,777
|
|
Cash
and cash equivalents
|
|
|
19,588
|
|
1,402,138
|
|
|
|
|
26,494,426
|
|
27,524,980
|
|
Property, plant and
equipment available for sale
|
|
|
2,359,451
|
|
-
|
|
Total assets
|
|
|
129,891,980
|
|
137,062,421
|
|
|
|
|
|
|
|
|
Equity and liabilities
|
|
|
|
|
|
|
Capital
stock
|
|
|
1,514,022
|
|
1,514,022
|
|
Adjustment to
capital stock
|
|
|
25,619,864
|
|
25,619,864
|
|
Legal
reserve
|
|
|
3,838,044
|
|
3,238,426
|
|
Voluntary
reserve
|
|
|
48,479,823
|
|
36,092,233
|
|
Other
equity accounts
|
|
|
(1,966,148)
|
|
-
|
|
Retained
earnings
|
|
|
6,897,425
|
|
12,987,208
|
|
Total
equity
|
|
|
84,383,030
|
|
79,451,753
|
|
|
|
|
|
|
|
|
Non-current liabilities
|
|
|
|
|
|
|
Other
non-financial liabilities
|
|
|
5,254,302
|
|
5,928,471
|
|
Loans
and borrowings
|
|
|
8,770,787
|
|
21,573,958
|
|
Compensation and
employee benefits liabilities
|
|
|
314,612
|
|
312,142
|
|
Deferred income tax
liabilities
|
|
|
7,032,642
|
|
8,037,866
|
|
|
|
|
21,372,343
|
|
35,852,437
|
|
Current liabilities
|
|
|
|
|
|
|
Trade
and other payables
|
|
|
2,309,869
|
|
7,272,312
|
|
Other
non-financial liabilities
|
|
|
2,041,562
|
|
2,186,777
|
|
Loans
and borrowings
|
|
|
16,440,790
|
|
9,199,005
|
|
Compensation and
employee benefits liabilities
|
|
|
899,523
|
|
861,792
|
|
Income
tax payable
|
|
|
2,410,009
|
|
2,200,966
|
|
Provisions
|
|
|
34,854
|
|
37,379
|
|
|
|
|
24,136,607
|
|
21,758,231
|
|
Total liabilities
|
|
|
45,508,950
|
|
57,610,668
|
|
Total equity and liabilities
|
|
|
129,891,980
|
|
137,062,421
|
-4-
English translation of the consolidated financial statements
originally filed in Spanish with the Argentine Securities
Commission (“CNV”).
In case of discrepancy, the consolidated financial statements filed
with the CNV prevail over this translation
CENTRAL
PUERTO S.A.
SEPARATE
STATEMENT OF CASH FLOWS
for
the year ended December 31, 2020
|
|
2020
|
|
2019
|
|
|
ARS 000
|
|
ARS 000
|
|
Operating
activities
|
|
|
|
|
Income
for the period before income tax
|
10,587,258
|
|
18,607,653
|
|
|
|
|
|
|
Adjustments
to reconcile income for the year before income tax to net cash
flows:
|
|
|
|
|
Depreciation of
property, plant and equipment
|
2,369,016
|
|
2,053,206
|
|
Amortization of
intangible assets
|
2,267,321
|
|
1,871,259
|
|
Impairment of
property, plant and equipment and intangible assets
|
4,016,305
|
|
5,996,233
|
|
Interest earned
from customers
|
(3,102,022)
|
|
(8,757,087)
|
|
Trade
and tax interests lost
|
373,124
|
|
-
|
|
Finance
income
|
(4,523,648)
|
|
(4,811,805)
|
|
Finance
expenses
|
12,176,334
|
|
13,172,382
|
|
Share
of the profit of associates and subsidiaries
|
(746,799)
|
|
(730,171)
|
|
Material and spare
parts impairment
|
42,935
|
|
42,977
|
|
Movements in
provisions and long-term employee benefit plan expense
|
131,066
|
|
110,307
|
|
Foreign
exchange difference for trade receivables
|
(10,651,242)
|
|
(16,121,389)
|
|
Loss on
net monetary position
|
(7,960,504)
|
|
(10,632,159)
|
|
|
|
|
|
|
Working
capital adjustments:
|
|
|
|
|
Decrease in trade
and other receivables
|
17,466,237
|
|
19,511,246
|
|
Decrease (Increase)
in other financial, non-financial assets and
inventories
|
129,294
|
|
(1,057,295)
|
|
(Decrease) Increase
in trade and other payables, other non-financial liabilities and
liabilities from employee benefits
|
(8,307,060)
|
|
806,626
|
|
|
14,267,615
|
|
20,061,983
|
|
Trade
and tax interests paid
|
(373,124)
|
|
-
|
|
Interest
received
|
2,985,135
|
|
6,578,193
|
|
Income
tax paid
|
(3,321,137)
|
|
(13,045,996)
|
|
Net
cash flows provided by operating activities
|
13,558,489
|
|
13,594,180
|
|
|
|
|
|
|
Investing
activities
|
|
|
|
|
Purchase of
property, plant and equipment
|
(6,172,740)
|
|
(14,034,330)
|
|
Acquisition of
Thermal Station Brigadier López
|
-
|
|
(11,526,280)
|
|
Loans
granted to subsidiaries, net
|
2,754,252
|
|
(3,038,169)
|
|
Interest received
from loans granted
|
86,040
|
|
70,439
|
|
Dividends
received
|
277,827
|
|
1,044,009
|
|
(Acquisition) Sale
of available-for-sale financial assets, net
|
(5,585,454)
|
|
887,766
|
|
Capital
contributions to subsidiaries
|
(2,040,893)
|
|
(1,802,941)
|
|
Net
cash flows used in investing activities
|
(10,680,968)
|
|
(28,399,506)
|
|
|
|
|
|
|
Financing
activities
|
|
|
|
|
Loans
received
|
-
|
|
17,426,197
|
|
Bank
and investment accounts overdrafts received (paid),
net
|
(703,224)
|
|
1,379,410
|
|
Loans
paid
|
(1,587,090)
|
|
-
|
|
Direct
financing and loans refinancing costs
|
(303,742)
|
|
(1,055,314)
|
|
Interest and other
financial costs paid
|
(1,682,134)
|
|
(461,857)
|
|
Dividends
paid
|
-
|
|
(1,518,238)
|
|
Net
cash flows (used in) provided by financing activities
|
(4,276,190)
|
|
15,770,198
|
|
|
|
|
|
|
(Decrease)
Increase in cash and cash equivalents
|
(1,398,669)
|
|
964,872
|
|
Exchange difference
and other financial results
|
120,993
|
|
434,864
|
|
Monetary results
effect on cash and cash equivalents
|
(104,874)
|
|
(329,870)
|
|
Cash
and cash equivalents as of January 1
|
1,402,138
|
|
332,272
|
|
Cash
and cash equivalents as of December 31
|
19,588
|
|
1,402,138
|
-5-
English translation of the consolidated financial statements
originally filed in Spanish with the Argentine Securities
Commission (“CNV”).
In case of discrepancy, the consolidated financial statements filed
with the CNV prevail over this translation
CENTRAL
PUERTO S.A.
1.
Basis
of presentation of the separate financial statements
1.1.
Summary
of the applied accounting policies
The
Company presents its separate financial statements according to CNV
Regulations, which approved General Regulation No. 622. This
regulation establishes that entities issuing shares and/or
corporate bonds, with certain exceptions, must prepare their
financial statements in accordance with Technical Resolution No. 26
(as amended) of FACPCE, which states the adoption of IFRS as issued
by IASB, while other entities will have the option to use IFRS or
IFRS for SME in lieu of NCPA (Argentine Professional Accounting
Standards).
1.2.
Basis
for presentation
These
separate financial statements for the year ended December 31, 2020
were prepared by applying IFRS.
When
preparing these separate financial statements, the Company applied
the presentation bases, accounting policies, and relevant
accounting judgments, estimate and assumptions described in the
attached consolidated financial statements for the year ended
December 31, 2020.
-6-
English translation of the consolidated financial statements
originally filed in Spanish with the Argentine Securities
Commission (“CNV”).
In case of discrepancy, the consolidated financial statements filed
with the CNV prevail over this translation
EXHIBIT
C
CENTRAL
PUERTO S.A.
INVESTMENT
IN SUBSIDIARIES
AS
OF DECEMBER 31. 2020 AND 2019
|
|
|
2020
|
|
2019
|
||||||||||||||
|
Name and characteristics of securities and issuers
|
|
Class
|
|
Face value
|
|
Number
|
|
Cost value
|
|
Listed price
|
|
Value obtained by the equity method
|
|
Share of profit of subsidiaries
|
|
Book value
|
|
Book value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INVESTMENT
IN SUBSIDIARIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Central
Vuelta de Obligado S.A.
|
|
1
vote
|
|
1
|
|
280,950
|
|
281
|
|
Unlisted
|
|
164,581
|
|
102,538
|
|
164,581
|
|
144,073
|
|
CP
Renovables S.A.
|
|
1
vote
|
|
1
|
|
5,016,199,569
|
|
6,413,571,322
|
|
Unlisted
|
|
6,127,288
|
|
1,258,359
|
|
6,127,288
|
|
1,879,242
|
|
Proener S.A.U.
|
|
1
vote
|
|
1
|
|
282,557
|
|
1
|
|
Unlisted
|
|
19,920
|
|
(11,761)
|
|
19,920
|
|
81,015
|
|
Vientos
La Genoveva S.A.U.
|
|
1
vote
|
|
1
|
|
1,615,451,861
|
|
1,615,451,861
|
|
Unlisted
|
|
1,948,445
|
|
(1,090,442)
|
|
1,948,445
|
|
3,038,887
|
|
Vientos
La Genoveva II S.A.U.
|
|
1
vote
|
|
1
|
|
498,293,542
|
|
498,293,542
|
|
Unlisted
|
|
1,425,754
|
|
379,354
|
|
1,425,754
|
|
1,148,935
|
|
Central
Aime Paine S.A.
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
-
|
|
-
|
|
-
|
|
133
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
638,048
|
|
9,685,988
|
|
6,292,285
|
|
|
|
Latest available financial information
|
||||||||
|
Name and characteristics of securities and issuers
|
|
Date
|
|
Capital stock
|
|
(Loss) Income
|
|
Equity
|
|
Direct and indirect equity interest %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INVESTMENT
IN SUBSIDIARIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Central
Vuelta de Obligado S.A.
|
|
12/31/2020
|
|
500
|
|
194,978
|
|
194,978
|
|
56.19%
|
|
CP
Renovables S.A.
|
|
12/31/2020
|
|
5,312,977
|
|
1,281,951
|
|
6,636,930
|
|
94.91%
|
|
Proener S.A.U.
|
|
12/31/2020
|
|
283
|
|
(11,761)
|
|
27,339
|
|
100.00%
|
|
Vientos
La Genoveva S.A.U.
|
|
12/31/2020
|
|
1,615,452
|
|
(1,051,961)
|
|
1,618,469
|
|
100.00%
|
|
Vientos
La Genoveva II S.A.U.
|
|
12/31/2020
|
|
498,294
|
|
393,047
|
|
1,219,065
|
|
100.00%
|
-1-
English translation of the original report issued in Spanish for
publication in Argentina
INDEPENDENT
AUDITORS’ REPORT
To the
Directors of
CENTRAL
PUERTO S.A.
I.
Report
on the audit of the consolidated financial statements
Opinion
We have
audited the consolidated financial statements of Central Puerto
S.A. and its subsidiaries (the Group), which comprise the
consolidated statement of financial position as at December 31,
2020, and the consolidated statement of comprehensive income,
consolidated statement of changes in equity and consolidated
statement of cash flows for the year then ended, and notes to the
consolidated financial statements, including a summary of
significant accounting policies.
In our
opinion, the accompanying consolidated financial statements present
fairly, in all material respects, the consolidated financial
position of the Group as at December 31, 2020 and its consolidated
financial performance and its consolidated cash flows for the year
then ended in accordance with International Financial Reporting
Standards (IFRSs).
Basis
for opinion
We
conducted our audit in accordance with International Standards on
Auditing (ISAs). Our responsibilities under those standards are
further described in the Auditor’s responsibilities for the audit
of the consolidated financial statements section of our
report. We are independent of the Group in accordance with the
International Code of Ethics for Professional Accountants
(including International Independence Standards) (IESBA Code)
together with the ethical requirements that are relevant to our
audit of the consolidated financial statements in Argentina, and we
have fulfilled our other ethical responsibilities in accordance
with these requirements and the IESBA Code. We believe that the
audit evidence we have obtained is sufficient and appropriate to
provide a basis for our opinion.
Key
audit matters
Key
audit matters are those matters that, in our professional judgment,
were of most significance in our audit of the consolidated
financial statements of the current period. These matters were
addressed in the context of our audit of the consolidated financial
statements as a whole, and in forming our opinion thereon, and we
do not provide a separate opinion on these matters. For each matter
below, our description of how our audit addressed the matter is
provided in that context.
We have
fulfilled the responsibilities described in the Auditor’s responsibilities for the audit
of the consolidated financial statements section of our
report, including in relation to these matters. Accordingly, our
audit included the performance of procedures designed to respond to
our assessment of the risks of material misstatement of the
consolidated financial statements. The results of our audit
procedures, including the procedures performed to address the
matters below, provide the basis for our audit opinion on the
accompanying consolidated financial statements.
Valuation
of property, plant and equipment and intangible assets Description
of the Matter
As reflected in the Group´s consolidated financial statements,
at December 31, 2020, the Group´s property, plant and
equipment (“PP&E”) and intangible assets were
Argentine pesos (“Ps.”) 79,187 million and Ps. 6,744
million, respectively. As further described in Note 2.3.8 to the
consolidated financial statements, PP&E and intangible assets
are tested for impairment when an existing event or one that took
place after year end, and provides additional evidence of
conditions that existed at the end of the reporting period,
indicates than the recoverable value of the PP&E and/or
intangible assets amounts may be affected.
-2-
For each individual asset or cash generating unit
(“CGU”) for which impairment indicators are identified,
management estimates the recoverable amount for the asset or CGU,
which is the higher of the fair value less costs to sell and its
value in use, and compares it to the respective carrying amount.
The Group estimated the fair value less cost to sell of Turbines
based on purchase offers received and external specialists’
valuations. The value in use for the Group´s CGUs related to
the Electric Power Generation from conventional sources operating
segment, was estimated based on discounted future cash
flows.
During 2020, the Group recorded a Ps. 3,417 million impairment loss
on PP&E related to Brigadier López Thermal Generation
Station, Combined Cycle Luján de Cuyo and certain Turbines and
a Ps. 599 million impairment loss on its intangible assets related
to the Brigadier López Thermal Generation
Station.
Auditing this area is especially challenging because it involves a
high degree of auditor judgment in performing procedures to
evaluate management assumptions to determine the fair value less
cost to sell and value in use, such as prospective financial
information (including market inputs used in the determination of
certain assets’ fair value , expected inflation and exchange
rates, the estimated growth in energy market, future electricity
prices and developments in the regulatory framework) and the
discount rate, which are forward-looking and based upon
expectations about future economic and market conditions. Due to
the significance of the accounts involved and the uncertainties
associated with the impairment testing process, the results of
those tests can have a significant effect on the consolidated
financial statements and vary significantly if different
assumptions are applied in the model.
How
We Addressed the Matter in our Audit
We obtained an understanding, evaluated the design, and tested the
operating effectiveness of controls over the Group’s
impairment assessment process, including controls over
management’s review of the significant assumptions described
above, the completeness and accuracy of the underlying data and
over the consistency of the discounted cash flow model used by the
Group.
To test management´s impairment evaluation, our audit
procedures included, among others, assessing the methodologies used
by management, testing the underlying data and involving our
internal valuation specialists to assist in testing the significant
assumptions discussed above and the valuations in which the Group
based its determination of fair value less cost to sell. For
example, we compared the significant assumptions used by
management, such as expected inflation, exchange rates and future
energy prices, to current available economic trends data and known
regulatory framework, and evaluated whether changes to the
Group’s estimation model or other factors affected the
significant assumptions. We also assessed historical accuracy of
management’s estimates and performed sensitivity analysis to
evaluate the changes in the value in use that would result from
changes in the underlying assumptions and tested the arithmetical
accuracy and internal logic of the discounted cash flows model. We
also assessed the completeness of the related disclosures in the
consolidated financial statements.
Other
information included in The Group’s 2020 Annual
Report
Other
information consists of the information included in the Annual
Report, other than the consolidated financial statements and our
auditor’s report thereon. Management is responsible for the
other information.
Our
opinion on the financial statements does not cover the other
information and we do not express any form of assurance conclusion
thereon.
In
connection with our audit of the consolidated financial statements,
our responsibility is to read the other information and, in doing
so, consider whether the other information is materially
inconsistent with the consolidated financial statements or our
knowledge obtained in the audit or otherwise appears to be
materially misstated. If, based on the work we have performed, we
conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing
to report in this regard.
Responsibilities
of management and the Audit Committee for the consolidated
financial statements
Management is
responsible for the preparation and fair presentation of the
consolidated financial statements in accordance with IFRSs, and for
such internal control as management determines is necessary to
enable the
-3-
preparation of
consolidated financial statements that are free from material
misstatement, whether due to fraud or error.
In
preparing the consolidated financial statements, management is
responsible for assessing the Group’s ability to continue as
a going concern, disclosing, as applicable, matters related to
going concern and using the going concern basis of accounting
unless management either intends to liquidate the Group or to cease
operations, or has no realistic alternative but to do
so.
The
Audit Committee is responsible for overseeing the Group’s
financial reporting process.
Auditor’s
responsibilities for the audit of the consolidated financial
statements
Our
objectives are to obtain reasonable assurance about whether the
consolidated financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an
auditor’s report that includes our opinion. Reasonable
assurance is a high level of assurance but is not a guarantee that
an audit conducted in accordance with ISAs will always detect a
material misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or in
the aggregate, they could reasonably be expected to influence the
economic decisions of users taken on the basis of these
consolidated financial statements.
As part
of an audit in accordance with ISAs, we exercise professional
judgment and maintain professional skepticism throughout the audit.
We also:
●
Identify and assess
the risks of material misstatement of the consolidated financial
statements, whether due to fraud or error, design and perform audit
procedures responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis for our
opinion. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal
control.
●
Obtain an
understanding of internal control relevant to the audit in order to
design audit procedures that are appropriate in the circumstances,
but not for the purpose of expressing an opinion on the
effectiveness of the Group’s internal control.
●
Evaluate the
appropriateness of accounting policies used and the reasonableness
of accounting estimates and related disclosures made by
management.
●
Conclude on the
appropriateness of management’s use of the going concern
basis of accounting and, based on the audit evidence obtained,
whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the Group’s
ability to continue as a going concern. If we conclude that a
material uncertainty exists, we are required to draw attention in
our auditor’s report to the related disclosures in the
consolidated financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the
audit evidence obtained up to the date of our auditor’s
report. However, future events or conditions may cause the Group to
cease to continue as a going concern.
●
Evaluate the
overall presentation, structure and content of the consolidated
financial statements, including the disclosures, and whether the
consolidated financial statements represent the underlying
transactions and events in a manner that achieves fair
presentation.
●
Obtain sufficient
appropriate audit evidence regarding the financial information of
the entities or business activities within the Group to express an
opinion on the consolidated financial statements. We are
responsible for the direction, supervision and performance of the
group audit. We remain solely responsible for our audit
opinion.
We
communicate with the Audit Committee regarding, among other
matters, the planned scope and timing of the audit and significant
audit findings, including any significant deficiencies in internal
control that we identify during our audit.
-4-
We also
provide the Audit Committee with a statement that we have complied
with relevant ethical requirements regarding independence, and to
communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where
applicable, actions taken to eliminate threats or safeguards
applied.
From
the matters communicated with the Audit Committee, we determine
those matters that were of most significance in the audit of the
consolidated financial statements of the current period and are
therefore the key audit matters. We describe these matters in our
auditor’s report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare
circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of
doing so would reasonably be expected to outweigh the public
interest benefits of such communication.
City of
Buenos Aires,
March
15, 2021.
PISTRELLI,
HENRY MARTIN Y ASOCIADOS S.R.L. C.P.C.E.C.A.B.A. T° 1 -
F° 13
GERMÁN
E. CANTALUPI
Partner
Certified Public
Accountant (U.B.A.) C.P.C.E.C.A.B.A. T° 248 - F°
60
-1-
English translation of the original report issued in Spanish for
publication in Argentina
INDEPENDENT
AUDITORS’ REPORT
To the
Directors of
CENTRAL
PUERTO S.A.
I.
Report
on the audit of the financial statements
Opinion
We have
audited the financial statements of Central Puerto S.A. (the
Company), which comprise the statement of financial position as at
December 31, 2020, and the statement of comprehensive income,
statement of changes in equity and statement of cash flows for the
year then ended, and notes to the financial statements, including a
summary of significant accounting policies.
In our
opinion, the accompanying financial statements present fairly, in
all material respects, the financial position of the Company as at
December 31, 2020 and its financial performance and its cash flows
for the year then ended in accordance with International Financial
Reporting Standards (IFRSs).
Basis
for opinion
We
conducted our audit in accordance with International Standards on
Auditing (ISAs). Our responsibilities under those standards are
further described in the Auditor’s responsibilities for the audit
of the financial statements section of our report. We are
independent of the Company in accordance with the International Code of Ethics for Professional
Accountants (including International Independence Standards)
(IESBA Code) together with the ethical requirements that are
relevant to our audit of the financial statements in Argentina, and
we have fulfilled our other ethical responsibilities in accordance
with these requirements and the IESBA Code. We believe that the
audit evidence we have obtained is sufficient and appropriate to
provide a basis for our opinion.
Key
audit matters
Key
audit matters are those matters that, in our professional judgment,
were of most significance in the audit of the financial statements
of the current period. These matters were addressed in the context
of the audit of the financial statements as a whole, and in forming
the auditor’s opinion thereon, and we do not provide a
separate opinion on these matters. For each matter below, our
description of how our audit addressed the matter is provided in
that context.
We have
fulfilled the responsibilities described in the Auditor’s responsibilities for the audit
of the financial statements section of our report, including
in relation to these matters. Accordingly, our audit included the
performance of procedures designed to respond to our assessment of
the risks of material misstatement of the financial statements. The
results of our audit procedures, including the procedures performed
to address the matters below, provide the basis for our audit
opinion on the accompanying financial statements.
Valuation
of property, plant and equipment and intangible assets Description
of the Matter
As reflected in the Group´s consolidated financial statements,
at December 31, 2020, the Group´s property, plant and
equipment (“PP&E”) and intangible assets were
Argentine pesos (“Ps.”) 79,187 million and Ps. 6,744
million, respectively. As further described in Note 2.3.8 to the
consolidated financial statements, PP&E and intangible assets
are tested for impairment when an existing event or one that took
place after year end, and provides additional evidence of
conditions that existed at the end of the reporting period,
indicates than the recoverable value of the PP&E and/or
intangible assets amounts may be affected.
For each individual asset or cash generating unit
(“CGU”) for which impairment indicators are identified,
management estimates the recoverable amount for the asset or CGU,
which is the higher of the fair value less
-2-
costs to sell and its value in use, and compares it to the
respective carrying amount. The Group estimated the fair value less
cost to sell of Turbines based on purchase offers received and
external specialists’ valuations. The value in use for the
Group´s CGUs related to the Electric Power Generation from
conventional sources operating segment, was estimated based on
discounted future cash flows.
During 2020, the Group recorded a Ps. 3,417 million impairment loss
on PP&E related to Brigadier López Thermal Generation
Station, Combined Cycle Luján de Cuyo and certain Turbines and
a Ps. 599 million impairment loss on its intangible assets related
to the Brigadier López Thermal Generation
Station.
Auditing this area is especially challenging because it involves a
high degree of auditor judgment in performing procedures to
evaluate management assumptions to determine the fair value less
cost to sell and value in use, such as prospective financial
information (including market inputs used in the determination of
certain assets’ fair value , expected inflation and exchange
rates, the estimated growth in energy market, future electricity
prices and developments in the regulatory framework) and the
discount rate, which are forward-looking and based upon
expectations about future economic and market conditions. Due to
the significance of the accounts involved and the uncertainties
associated with the impairment testing process, the results of
those tests can have a significant effect on the consolidated
financial statements and vary significantly if different
assumptions are applied in the model.
How
We Addressed the Matter in our Audit
We obtained an understanding, evaluated the design, and tested the
operating effectiveness of controls over the Group’s
impairment assessment process, including controls over
management’s review of the significant assumptions described
above, the completeness and accuracy of the underlying data and
over the consistency of the discounted cash flow model used by the
Group.
To test management´s impairment evaluation, our audit
procedures included, among others, assessing the methodologies used
by management, testing the underlying data and involving our
internal valuation specialists to assist in testing the significant
assumptions discussed above and the valuations in which the Group
based its determination of fair value less cost to sell. For
example, we compared the significant assumptions used by
management, such as expected inflation, exchange rates and future
energy prices, to current available economic trends data and known
regulatory framework, and evaluated whether changes to the
Group’s estimation model or other factors affected the
significant assumptions. We also assessed historical accuracy of
management’s estimates and performed sensitivity analysis to
evaluate the changes in the value in use that would result from
changes in the underlying assumptions and tested the arithmetical
accuracy and internal logic of the discounted cash flows model. We
also assessed the completeness of the related disclosures in the
consolidated financial statements.
Other
information included in The Group’s 2020 Annual
Report
Other
information consists of the information included in the Annual
Report, other than the consolidated financial statements and our
auditor’s report thereon. Management is responsible for the
other information.
Our
opinion on the financial statements does not cover the other
information and we do not express any form of assurance conclusion
thereon.
In
connection with our audit of the consolidated financial statements,
our responsibility is to read the other information and, in doing
so, consider whether the other information is materially
inconsistent with the consolidated financial statements or our
knowledge obtained in the audit or otherwise appears to be
materially misstated. If, based on the work we have performed, we
conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing
to report in this regard.
Responsibilities
of management and the Audit Committee for the consolidated
financial statements
Management is
responsible for the preparation and fair presentation of the
consolidated financial statements in accordance with IFRSs, and for
such internal control as management determines is necessary to
enable the preparation of consolidated financial statements that
are free from material misstatement, whether due to fraud or
error.
-3-
In
preparing the consolidated financial statements, management is
responsible for assessing the Group’s ability to continue as
a going concern, disclosing, as applicable, matters related to
going concern and using the going concern basis of accounting
unless management either intends to liquidate the Group or to cease
operations, or has no realistic alternative but to do
so.
The
Audit Committee is responsible for overseeing the Group’s
financial reporting process.
Auditor’s
responsibilities for the audit of the consolidated financial
statements
Our
objectives are to obtain reasonable assurance about whether the
consolidated financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an
auditor’s report that includes our opinion. Reasonable
assurance is a high level of assurance but is not a guarantee that
an audit conducted in accordance with ISAs will always detect a
material misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or in
the aggregate, they could reasonably be expected to influence the
economic decisions of users taken on the basis of these
consolidated financial statements.
As part
of an audit in accordance with ISAs, we exercise professional
judgment and maintain professional skepticism throughout the audit.
We also:
●
Identify and assess
the risks of material misstatement of the consolidated financial
statements, whether due to fraud or error, design and perform audit
procedures responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis for our
opinion. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal
control.
●
Obtain an
understanding of internal control relevant to the audit in order to
design audit procedures that are appropriate in the circumstances,
but not for the purpose of expressing an opinion on the
effectiveness of the Group’s internal control.
●
Evaluate the
appropriateness of accounting policies used and the reasonableness
of accounting estimates and related disclosures made by
management.
●
Conclude on the
appropriateness of management’s use of the going concern
basis of accounting and, based on the audit evidence obtained,
whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the Group’s
ability to continue as a going concern. If we conclude that a
material uncertainty exists, we are required to draw attention in
our auditor’s report to the related disclosures in the
consolidated financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the
audit evidence obtained up to the date of our auditor’s
report. However, future events or conditions may cause the Group to
cease to continue as a going concern.
●
Evaluate the
overall presentation, structure and content of the consolidated
financial statements, including the disclosures, and whether the
consolidated financial statements represent the underlying
transactions and events in a manner that achieves fair
presentation.
●
Obtain sufficient
appropriate audit evidence regarding the financial information of
the entities or business activities within the Group to express an
opinion on the consolidated financial statements. We are
responsible for the direction, supervision and performance of the
group audit. We remain solely responsible for our audit
opinion.
We
communicate with the Audit Committee regarding, among other
matters, the planned scope and timing of the audit and significant
audit findings, including any significant deficiencies in internal
control that we identify during our audit.
We also
provide the Audit Committee with a statement that we have complied
with relevant ethical requirements regarding independence, and to
communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where
applicable, actions taken to eliminate threats or safeguards
applied.
-4-
From
the matters communicated with the Audit Committee, we determine
those matters that were of most significance in the audit of the
consolidated financial statements of the current period and are
therefore the key audit matters. We describe these matters in our
auditor’s report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare
circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of
doing so would reasonably be expected to outweigh the public
interest benefits of such communication.
City of
Buenos Aires,
March
15, 2021.
PISTRELLI,
HENRY MARTIN Y ASOCIADOS S.R.L. C.P.C.E.C.A.B.A. T° 1 -
F° 13
GERMÁN
E. CANTALUPI
Partner
Certified Public
Accountant (U.B.A.) C.P.C.E.C.A.B.A. T° 248 - F°
60
ANNUAL
REPORT 2020
THE
COMPANY
Corporate name
Central
Puerto S.A.
Type of company
Corporation
Corporate purpose
Generation
and trade of electric power, alternative energies and
hydrocarbons.
Documents of incorporation
The
Company was incorporated through the Executive Decree no. 122/1992
issued by the Argentine Executive Branch on January 28, 1992 and
filled with the Registry of Commerce under book No. 1855, Book 110,
Volume A of Corporations.
Date of filling with the Business Entity Registry for the City of
Buenos Aires (Inspección
General de Justicia)
March
13, 1992
Expiration date of the Articles of Incorporation
March
13, 2091
Domicile
Avda.
Tomás Edison 2701
C1104BAB
Buenos Aires Argentina
Telephone
(5411) 4317 5000
Fax
(5411) 4317 5099
PROFILE
OF THE COMPANY
CORPORATE INFORMATION AND CORE ACTIVITY OF THE GROUP
Central
Puerto S.A. (hereinafter, the “Company” or
“CPSA”)
and the companies forming the economic group (hereinafter, the
“Group”) form the
integrated group of companies related to the energy sector, which
mainly perform activities of generation and trade of electric
power.
CPSA
was incorporated through the executive decree No. 122/1992 issued
by the Argentine Executive Branch (“PEN”, for its Spanish
acronym) pursuant to Law No. 24 065, which declared subject to
total privatization the activity of electric power generation,
transportation, distribution and trade in charge of Servicios
Eléctricos del Gran Buenos Aires S.A.
Our
shares are listed in MERVAL and, since February 1, 2018 in the New
York Stock Exchange (“NYSE”) under the symbol
“CEPU”.
So as
to develop its electric power generation activity, the Company has
the following assets:
–
Thermal power plants Puerto Nuevo and Nuevo Puerto, located in the
City of Buenos Aires, with a total thermal installed power of 1,714
MW, with a combined cycle and steam turbo groups
plant.
–
Thermal power plants located in Luján de Cuyo, Province of
Mendoza, with a combined installed power of 571 MW and of 125 t/h
steam generation.
–
Concession of Complejo Hidroeléctrico Piedra del Águila,
located on Río Limay, Province of Neuquén, with four
generation units with a power of 360 MW each.
–
Shares in the companies Termoeléctrica José de San
Martín S.A. (“TSM”) and Termoeléctrica Manuel
Belgrano S.A. (“TMB”), which companies operate thermal
generation plants with an installed capacity of 865MW and 873MW,
respectively; and in the company Central Vuelta de Obligado S.A.
(“CVOSA”), whose purpose is to manage the construction
and current operation of a combined-cycle power plant, with a 816
MW power.
–
The Thermal Power Station Brigadier López, located in Sauce
Viejo, Province of Santa Fe, with an installed power of 280.5 MW
(open-cycle operation).
–
The cogeneration combined-cycle thermal power station Terminal 6
-San Lorenzo, currently under construction, located in Puerto
General San Martín district, Province of Santa Fe. On November
21, 2020, gas turbine started commercial operations with a 269.5 MW
power (open cycle). Once the works finish and the power station
starts operating in open cycle, it shall have a 330 MW power and a
340 tn/h steam production.
Additionally,
the Group is related to the natural gas distribution sector in the
Cuyo region and Central areas of the Argentine Republic , through
the investment in associated companies belonging to ECOGAS
Group.
On July
19, 2018, the Argentine Gas Regulation Entity (Enargas) filled the
company with the Enargas Traders and Trade Agreements
Register.
Finally,
as from the incorporation of CP Renovables S.A. (hereinafter,
“CPR”) and its subsidiaries, as well as Vientos La
Genoveva S.A.U. And Vientos La Genoveva II S.A.U., the Group
participates in development, execution and exploitation activities
in energy projects from the use of renewable energy sources. In
this regard, as of this date, it has an installed capacity of 373.8
MW commercially authorized power, which is distributed as follows:
(i) La Castellana wind farm: 100.8 MW; (ii) La Castellana II wind
farm: 15 MW; (iii) La Genoveva wind farm: 88.2 MW; (iv) La Genoveva
II wind farm: 41.8 MW; (v) Achiras wind farm: 48 MW; (vi) Los
Olivos wind farm: 22.8 MW; and (vii) Manque wind farm: 57
MW.
Additionally,
the Group is related to the natural gas distribution sector in the
Cuyo region and Central areas of the Argentine Republic, through
the investment in associated companies belonging to Distribuidora
de Gas del Centro S.A. And Distribuidora de Gas Cuyana
S.A.
Moreover,
the Company is the sole shareholder of Proener S.A.U., which is
aimed at performing investment activities, including the energy
sectors in any part of the Argentine Republic and
abroad.
SHARE CAPITAL- DIVIDEND DISTRIBUTION AND CREATION OF
RESERVES
The share capital of the Company amounts to 1,514,022,256,
represented by common and book-entry shares registered and kept
under the name of their holders in a Book-Entry Shares Register
kept by Caja de Valores S.A. (herainfater,
“Caja”).
Furthermore, 100% of the share capital is under the regime of
public offering and quote listing of shares and certificates
representing them in Bolsas y Mercados Argentinos (hereinafter,
“BYMA”)
and in the NYSE.
On
April 30, 2020, shareholders at the Special Shareholders’
Meeting approved: a)
increasing the Statutory Reserve in an amount of ARS 440,441
(historical values); b)
allocating the remaining balance for the period to the increase of
the Optional Reserve, which shall be allocated to: (I) investment
projects already undertaken and/or (ii) future investments related
to the projects approved by the Board of Directors and/or (iii)
payment of dividends based on the evolution of the Company’s
financial conditions and the provisions of the Company’s
Dividends Distribution Policy in force. Additionally, the
personnel’s profit-sharing bond was approved by the Company,
as per sections 12 and 33 of the Bylaws, delegating in the Board of
Directors its payment conditions.
BOARD
OF DIRECTORS, STATUTORY AUDIT COMMITTEE AND SUPERVISORY
COMMITTEE
|
Board of Directors
|
|
|
Directors
|
Deputy Directors
|
|
Chairman
|
JUSTO
PEDRO SAENZ
|
|
OSVALDO
ARTURO RECA
|
ADRIÁN
GUSTAVO SALVATORE
|
|
Vice-Chairman
|
JORGE
ANIBAL RAUBER
|
|
MARCELO
ATILIO SUVA
|
|
|
JAVIER
ALEJANDRO TORRE
|
|
|
MIGUEL
DODERO
|
RUBÉN
OMAR LÓPEZ
|
|
JOSÉ
LUIS MOREA
|
JOSÉ
MANUEL PAZOS
|
|
JUAN
JOSÉ SALAS
|
GONZALO
ENRIQUE BALLESTER
|
|
DIEGO
GUSTAVO PETRACCHI
|
OSCAR
LUIS GOSIO
|
|
TOMÁS
PERES
|
JUAN
PABLO GAUNA OTERO
|
|
TOMAS
JOSÉ WHITE
|
FEDERICO
CERDEIRO
|
|
CRISTIÁN
LÓPEZ SAUBIDET
|
GABRIEL
ENRIQUE RANUCCI
|
|
JORGE
EDUARDO VILLEGAS
|
|
|
GUILLERMO
PONS
|
|
|
|
|
|
Statutory Audit Committee
|
|
|
Members
|
Deputy Members
|
|
CARLOS
CESAR A. HALLADJIAN
|
CARLOS
ADOLFO ZLOTNITZKY
|
|
EDUARDO
ANTONIO EROSA
|
HORACIO
EROSA
|
|
JUAN
ANTONIO NICHOLSON
|
LUCAS
NICHOLSONI
|
|
|
|
|
Supervisory Committee
|
|
|
Members
|
Deputy Members
|
|
José
Luis MOREA
|
JORGE
EDUARDO VILLEGAS
|
|
JUAN
JOSÉ SALAS
|
OSCAR
LUIS GOSIO
|
|
TOMAS
JOSÉ WHITE
|
|
MACROECONOMIC
CONTEXT
International
context
In 2020, the global economy
suffered a strong collapse as a consequence of the pandemics caused
by COVID-19 virus, which virus has had serious implications at a
worldwide and regional level in the whole population, mainly
affecting the elderly at health level and the whole active
population at the economic level; and even more strongly the
informal sector and those sectors in which personal contact is
intensive. Despite the strong falls in the activity level, there
was a higher dynamism than the expected in the second semester
2020.
Against
this context, in January 2021, the International Monetary Fund
(hereinafter, “IMF”) estimated a global growth of -3.5%
for the whole year 2020, which is a 0.9% better than forecasted in
its Oct-20 report. This improvement was particularly seen in
developed economies, whose activity started improving before
forecasted, once lockdowns were less strict.
The
recent approval of vaccines has encouraged hope that the pandemic
will reach a turning point. However, the new waves and virus
variants generate concerns regarding 2021 outlooks. Within this
exceptional uncertainty, IMF forecasts that the global economy will
grow by 5.5% in 2021 thanks to the strengthening of the activity
generated by the vaccination process and the macroeconomic policies
support in big economies.
Local
context
Within
this context, the Argentine economy 2020 shrunk regarding year 2019
recording a 10.2% GDP decrease in the first 9 months of the year
(as per the latest data published
by INDEC [National Statistics Bureau]). In this regard, the
last report of Monthly Estimation of Economic Activity
(“EMAE”, for its acronym in Spanish) published by INDEC
shows that the accumulated GDP as of December 2020 decreased by
-10% regarding the previous year.
Restrictions
imposed on the free circulation of persons aimed at mitigating the
COVID-19 pandemic affected a significant amount of economic
activities in the country. This caused a significant decrease in
the average income of Argentine families, generating a paralysis in
the activity level of Argentina rarely seen before. The government
generated economic incentives to workers and companies to
compensate the delicate economic situation. This worsened the
fiscal deficit and money printing.
As a
consequence of the low level of activity during 2020, prices
increased at a lower rhythm in comparison with the previous year,
but still at high levels. In this regard, the year-over-year
variation of the Wholesale Internal Price Index (“IPIM”
for its acronym in Spanish) published by INDEC was of 35.4%, in
comparison with the 58.5% of 2019.
During
2020, the Argentine Central Bank reduced its international
reserves. At the end of the year, they were at USD 39,387
millions.
In the
exchange market, the US dollar showed a more moderate increase
during 2020, in comparison with the previous year due to the
tightening of exchange control measures. The wholesale dollar
closed the year at $84.15, with a 40.51% increase regarding
December 2019 closing, which was at $59.89.
In the
bank sector, interest rates decreased. Therefore, BADLAR rate
reached a 34.25% level as of December 31, 2020, compared with
39.44% as of the same date in the previous year.
Regarding
provisions for 2020, the IMF, in its Global Economic Outlook report
dated October 2020, stated that the Argentine economy will
partially recover, estimating a 4.9% GDP increase in
2021.
The
Argentine Executive Branch forecasted the main macroeconomic
variables for 2021 in the Argentine Budget Act, mentioning the 5.5%
GDP increase, a $102.4 dollar value (a 21.68% increase regarding
2020 closing) and a 29% CPI (Consumer Price Index)
increase.
WHOLESALE
ELECTRICITY MARKET
During
the Period 2020, the net demand by Agents of the Wholesale
Electricity Market (MEM, for its Spanish acronym) showed a 1.2%
decrease regarding 2019 reaching 127,306 GWh.
Such
electricity demand was covered by generation originated from the
following:
|
ARGENTINE INTERCONNECTED SYSTEM (SADI) GENERATION AND INTERNATIONAL
EXCHANGE [GWh]
|
|||
|
Power
|
2019
|
2020
|
Difference
|
|
THERMAL
|
80,137
|
82,333
|
2.7%
|
|
HYDRAULIC
|
35,370
|
29,093
|
-17.7%
|
|
NUCLEAR
|
7,927
|
10,010
|
26.3%
|
|
RENEWABLE
|
7,812
|
12,733
|
63%
|
|
IMPORTS
|
2,746
|
1,203
|
-56%
|
|
EXPORTS
|
261
|
3,089
|
1083%
|
The
previous table shows the participation of each electric power
generation source in 2019 and 2020.
The
hydroelectric generation experienced a 17.7% significant decrease
regarding the previous year, which is mainly explained by low water
flow in the rivers. This decrease was compensated by a higher
generation from renewable energies (63%), nuclear energy (26%) and
also thermal energy (2.7%). On the other hand, exports -even though
it has a lower participation in generation- increased by
1083%.
The
power demand record in SADI continues being the one established in
February 2018, when 26,320 MW were registered. The highest daily
demand of the system was registered in January 2019 reaching 544.4
Gwh, which represents a 0.26% increase regarding the previous
maximum (543 GWH registered in February 2018).
In
2020, there was a 5.3% year-over-year reduction in the consumption
of Natural Gas for the use of the thermal power plant. To the
contrary, Fuel Oil, Gas Oil and Mineral Coal consumptions
registered a strong year-over-year increase of 212%, 110 % and
114%, respectively. The reduction in the natural gas consumption
-independently of the electric power production of the thermal
power station in 2020- was mainly due to the combination of the
important decrease in the gas production in national basins and the
suspension of the season gas price increase in winter, keeping the
summer prices, by the Secretariat of Energy, which hinder
CAMMESA’s management capacity. Regarding the fuels
alternative to natural gas, the strong increase is the result of
the causes explained, which originated the decrease in the
consumption of natural gas.
The
following chart shows the behavior in the use of different fuels
for the generation of electric power regarding the previous
year:
|
Fuel
|
2019
|
2020
|
Difference
|
|
NATURAL GAS [Thousands of dam3]
|
17,208
|
16,282
|
-5%
|
|
FUEL OIL [Thousands of TN]
|
185
|
580
|
213%
|
|
GAS OIL [Thousands of m3]
|
403
|
851
|
110%
|
|
MINERAL COAL [Thousands of TN]
|
221
|
475
|
114%
|
Monthly demand
The
following chart shows the monthly evolution of the demand by Agents
of MEM during 2020, compared with 2019.
Demand
(it does not include exports, pumping and network
loss)
The
year-over-year total MEM demand decrease was of 1.3%.
Spot Market Sales
During
January 2020, Resolution 1/19 (“Res.1”) continued in
force, which Resolution was passed in February 2019. Such
Resolution introduced certain changes in the remuneration values
-in force at that time- of generation agents without altering the
currency in which they were established with Res. 19/17, i.e. they
stayed in US dollars.
On
February 28, 2020, Secretariat of Energy's Resolution No. 31/2020
was published in the Official Gazette, through which Res. 1 was
abolished and new energy, power and associated services
remuneration values were fixed for affected generators. Moreover,
the currency in which such were set was changed, being expressed in
Argentine Pesos.
Res.
31, as well as Res. 1, establishes a differential remuneration
between the generator committing certain availability (DIGO)
denominated Basis Remuneration and the generator that takes no
commitment (Minimum Remuneration). The main differences between
both resolutions are the following: i) reduction in prices applied
for each technology and ii) the item “Use Factor”
calculation change, which is used in the power remuneration (factor
calculated on each unit’s dispatch in the last rolling year,
through which the Power Remuneration percentage liquidated to the
generator is defined).
The
Res. 1 remuneration schedule is described below:
Power
remuneration to thermal generators.
Minimum
Remuneration: It remunerates the monthly average available power
(without considering the scheduled maintenance hours agreed with
CAMMESA) of the unit to those generators not declaring guaranteed
availability commitment (DIGO):
|
Power Minimum Remuneration
|
||
|
Technology
|
Res. 1/9
|
Res. 31/20
|
|
USD/MW-month
|
ARS/MW-month
|
|
|
CC Big
> 150 MW
|
3,050
|
100,650
|
|
CC
Small <= 150 MW
|
3,400
|
112,200
|
|
TV Big
> 100 mw
|
4,350
|
143,550
|
|
TV
Small <= 100 MW
|
5,200
|
171,600
|
|
TG Big
> 50 MW
|
3,550
|
117,150
|
|
TG
Small <= 50 MW
|
4,600
|
151,800
|
|
Motors
(R31 ≤42 MW)
|
5,200
|
171,600
|
Basis
Remuneration: It remunerates the Guaranteed Power Offered
(DIGO):
|
Price of the Guaranteed Power Offered (DIGO)
|
||||
|
Technology
|
Res. 1/9
|
Res. 31/20
|
||
|
Winter/Summer
|
The rest
|
Winter/Summer
|
The rest
|
|
|
USD/MW-month
|
USD/MW-month
|
ARS/MW-month
|
ARS/MW-month
|
|
|
CC Big
> 150 MW
|
7,000
|
5,500
|
360,000
|
270,000
|
|
CC
Small <= 150 MW
|
7,000
|
5,500
|
360,000
|
270,000
|
|
TV Big
> 100 mw
|
7,000
|
5,500
|
360,000
|
270,000
|
|
TV
Small <= 100 MW
|
7,000
|
5,500
|
360,000
|
270,000
|
|
TG Big
> 50 MW
|
7,000
|
5,500
|
360,000
|
270,000
|
|
TG
Small <= 50 MW
|
7,000
|
5,500
|
360,000
|
270,000
|
|
Motors
(R31 ≤42 MW)
|
7,000
|
5,500
|
420,000
|
330,000
|
Use
Factor (FU):
Use
Factor is calculated as the relationship between Operated Energy
and Actual Power Availability of the unit in the 12 months before
the remuneration month, without considering the Scheduled
Maintenance periods.
If the
Use Factor is higher than or equals 70%, then 100% of Power
Remuneration corresponding to that unit is liquidated.
If the
Use Factor is lower than 30%, then 60% of Power Remuneration
corresponding to that unit is liquidated.
For the
Use Factor values between 30%-70%, then the Power Remuneration
liquidation percentage for the unit is calculated as follows: FU +
0,3.
This
power remuneration schedule in terms of the Use Factor is shown in
the following graph, where Res. 1 FU and Res. 1 FU are
compared:
Remuneration
power availability in hours of maximum thermal requirement
(HMRT)
Res. 31
introduces the remuneration concept in HRMT as from the average
power actually delivered for each unit during the 50 hours of the
maximum thermal requirement in the month.
RemHMRT
= Pot1 * Price * FRPHMRT1 + Pot2 * Price * FRPHMRT2
Pot1:
average generated power during the first 25 hours of maximum
thermal requirement in the month.
Pot2:
average generated power during the second 25 hours of maximum
thermal requirement in the month.
Price:
37,500 $/MW
FRPHMRT1
/ FRPHMRT2:
|
Maximum Hours of Thermal Requirement
|
FRPHRMT
|
|||
|
Summer
|
Fall
|
Winter
|
Summer
|
|
|
HMRT-1
|
1.2
|
0.2
|
1.2
|
0.2
|
|
HMRT-2
|
0.6
|
0
|
0.6
|
0
|
Power
remuneration to hydraulic generators
In the
following table, the remuneration values for available hydraulic
power of Res. 31, as well as the ones of Res.1 are
shown:
|
Price
of the Hydraulic Power Availability
|
||
|
HYDRO
SCALE
|
R1/R19
|
R31/20
|
|
USD/MWh
|
ARS/MWh
|
|
|
Hydros
> 300
|
3,150
|
103,950
|
|
Hydro
between 120 and 300
|
4,200
|
138,600
|
|
Hydros
between 50 and 120
|
5,775
|
190,575
|
|
Renewable
hydros lower than 50
|
9,450
|
311,850
|
|
Pumping
higher than 300
|
1,575
|
103,950
|
|
Pumping
between 120 and 300
|
2,625
|
138,600
|
|
*It
includes incidence factor (1.05) for Scheduled
Maintenance
|
||
Res. 31
introduces the remuneration concept in HRMT as from the average
operated power available for each unit during the 50 hours of the
maximum thermal requirement in the month.
RemHMRT
= Pot1 * Price * FRPHMRT1 + Pot2 * Price * FRPHMRT2
Pot1:
average generated power during the first 25 hours of maximum
thermal requirement in the month.
Pot2:
average generated power during the second 25 hours of maximum
thermal requirement in the month.
Price:
|
Remuneration
of the Available Power in HMRT
|
|
|
HYDRO
SCALE
|
PicePOHMRT
|
|
$/MW-hmrt
|
|
|
Hydros
> 300
|
25,700
|
|
Hydro
between 120 and 300
|
32,500
|
|
Hydros
between 50 and 120
|
32,500
|
|
Renewable
hydros lower than 50
|
32,500
|
|
Pumping
higher than 300
|
32,500
|
|
Pumping
between 120 and 300
|
32,500
|
FRPHMRT1
/ FRPHMRT2:
|
Maximum Hours of Thermal Requirement
|
FRPHRMT
|
|||
|
Summer
|
Fall
|
Winter
|
Summer
|
|
|
HMRT-1
|
1.2
|
0.2
|
1.2
|
0.2
|
|
HMRT-2
|
0.6
|
0
|
0.6
|
0
|
Power
remuneration to thermal generators
Regarding
the remuneration for thermal energy generation, Res. 31 establishes
new values expressed in Pesos for the energy generated and
operated, in accordance with the type of technology, as
follows:
|
Generated Power Remuneration -GN
|
||
|
Technology
|
Res. 1/9
|
Res. 31/20
|
|
USD/MW-month
|
ARS/MW-month
|
|
|
CC Big
> 150 MW
|
4.00
|
240.00
|
|
CC
Small <= 150 MW
|
4.00
|
240.00
|
|
TV Big
> 100 mw
|
4.00
|
240.00
|
|
TV
Small <= 100 MW
|
4.00
|
240.00
|
|
TG Big
> 50 MW
|
4.00
|
240.00
|
|
TG
Small <= 50 MW
|
4.00
|
240.00
|
|
Engines
(R31 ≤42 MW)
|
4.00
|
240.00
|
|
Generated Power Remuneration –FO/GO
|
||
|
Technology
|
Res. 1/9
|
Res. 31/20
|
|
USD/MW-month
|
ARS/MW-month
|
|
|
CC Big
> 150 MW
|
7.00
|
420.00
|
|
CC
Small <= 150 MW
|
7.00
|
420.00
|
|
TV Big
> 100 mw
|
7.00
|
420.00
|
|
TV
Small <= 100 MW
|
7.00
|
420.00
|
|
TG Big
> 50 MW
|
7.00
|
420.00
|
|
TG
Small <= 50 MW
|
7.00
|
420.00
|
|
Engines
(R31 ≤42 MW)
|
7.00
|
420.00
|
|
Generated Power Remuneration –Biocomb
|
||
|
Technology
|
Res. 1/9
|
Res. 31/20
|
|
USD/MW-month
|
ARS/MW-month
|
|
|
CC Big
> 150 MW
|
10.00
|
600.00
|
|
CC
Small <= 150 MW
|
10.00
|
600.00
|
|
TV Big
> 100 mw
|
10.00
|
600.00
|
|
TV
Small <= 100 MW
|
10.00
|
600.00
|
|
TG Big
> 50 MW
|
10.00
|
600.00
|
|
TG
Small <= 50 MW
|
10.00
|
600.00
|
|
Engines
(R31 ≤42 MW)
|
10.00
|
720.00
|
|
Generated Power Remuneration –CM
|
||
|
Technology
|
Res. 1/9
|
Res. 31/20
|
|
USD/MW-month
|
ARS/MW-month
|
|
|
CC Big
> 150 MW
|
|
|
|
CC
Small <= 150 MW
|
|
|
|
TV Big
> 100 mw
|
12.00
|
720.00
|
|
TV
Small <= 100 MW
|
12.00
|
720.00
|
|
TG Big
> 50 MW
|
|
|
|
TG
Small <= 50 MW
|
|
|
|
Engines
(R31 ≤42 MW)
|
|
|
|
Operated Power Remuneration
|
||||
|
Technology
|
|
Res. 19/17
|
Res.1/19
|
Var
|
|
TG P
<= 50 MW
|
USD/MWh
|
2.0
|
1.40
|
-30.00%
|
|
TG P
> 50 MW
|
USD/MWh
|
2.0
|
1.40
|
-30.00%
|
|
TV P
<= 100 MW
|
USD/MWh
|
2.0
|
1.40
|
-30.00%
|
|
TV P
> 100 MW
|
USD/MWh
|
2.0
|
1.40
|
-30.00%
|
|
CC P
<= 150 MW
|
USD/MWh
|
2.0
|
1.40
|
-30.00%
|
|
CC P
> 150 MW
|
USD/MWh
|
2.0
|
1.40
|
-30.00%
|
|
INTERNAL
COMBUSTION ENGINES
|
USD/MWh
|
2.0
|
1.40
|
-30.00%
|
In
addition, Res. 31 established that the remuneration for operated
energy, represented by the additions of hour powers in which the
unit was generating, should be updated to 84$/Mwh. The previous
value, fixed in Res. 1 was of 1.4 USD/MWh.
Power
remuneration to hydraulic generators
For
hydraulic generation, Res. 31 established a 210$/Mwh price,
updating the value promptly fixed by Res 1 of 3.5
USD/MWh
In
addition, Res. 31 established that the remuneration for operated
energy, represented by the additions of hour powers in which the
unit was generating, should be updated at 84$/Mwh. The previous
value, fixed in Res. 1 was of 1.4 USD/MWh.
Res 31
established a monthly adjustment factor applicable to all the
values stated therein, which is updated through the Consumer Price
Index (IPC) and the Wholesale Price Index (IPIM), both published by
INDEC.
When
making the first price adjustment to the Res 31 remuneration , the
Secretariat of Energy orders CAMMESA, through note dated April 8,
2020, to postpone until new notice the energy and power price
updating mechanism. As a consequence of the foregoing, during the
whole year 2020, remuneration prices of Res 31 were not adjusted as
expected. The Company is evaluating the effects of failing to apply
such mechanism, as well as the steps to follow in that
regard.
TRADING
Market share
Taking
into account renewable power generation, Central Puerto had a
14,300 Gwh net generation in 2020, which represents a 10.7%
participation in generation over SADI total, slightly below 11.3%
of 2019 share.
Regarding
SADI total thermal generation, Central Puerto reached an 11.6%
participation 2019, lower than the previous year’s
12.7%.
Taking
into consideration the renewable power generation, in 2020, Central
Puerto had a 549 Gwh decrease in its production in comparison with
the previous year, which equals a -3.7% mainly caused by a lower
generation in Piedra del Águila due to water inflows below the
historical average and a lower thermal generation, which was
compensated by a 81% increase regarding 2019 of the renewable
generation. It is worth mentioning (i) SADI lower total demand due
to the effects of COVID-19 in the Argentine economy (1.3% lower
than the previous year); (ii) higher electric power production from
renewable and nuclear resources (63% and 26%, respectively); (iii)
a 1083% increase in the export of energy.
AGREEMENTS
IN THE FORWARD MARKET
Summary
The
forward market currently comprises Servicio de Energía Plus,
MATER (Renewable Energy Forward Market) and the remaining basis
demand agreements with Large Users (“GU”, for its
Spanish acronym). During 2020, the restriction established in 2013
through Res. SE 95/13 to renew basis demand contracts was in force.
This regulation does not affect Energía Plus contracts, which
can be normally renewed.
While
in 2013, basis demand supplied under contract represented 84% of
the total basis demand with GU. In 2020, as a consequence of the
restriction introduced by Res. 95/13, such was reduced by 14%. Due
to the renewable energies regulations, another 13% basis demand is
supplied by MATER contract.
At the
end of 2020, generators traded a 760 MW average, where
approximately 28% of this last value corresponded to the
Futaleufú Hydroelectric Plant agreement with Aluar (basis
contract), 4% to other basis demand agreements still in force, 38%
correspond to renewable energies agreements (MATER) and 29% to plus
agreements.
During
2020, the energy traded through Energía Plus service
experienced a reduction of approximately 21% in comparison with the
previous year. The average traded power in 2020 was of 222 MW
approximately, in comparison with 280 MW registered in 2019. This
is explained by the following reasons: (I) the implicit subsidy in
the supply price provided by CAMMESA to Large Users. (II) migration
of GU with renewable energies plus agreements as per the
requirements established by Law No. 27 191 (amended by Law No. 26
190 -Argentine Incentive Regime for the use of Renewable Energies
Sources for the production of electric power).
Large
Users are allowed to contract all or part of its energy with
renewable source generation (MATER). In 2020, the existent
renewable energies allowed to operate in MATER were contracted
almost in their entirety.
TRADED DEMANDS
Graph 1
shows the evolution of power transacted by GU in MEM in the
2013-2019 period. It is shown that as a consequence of the
established restriction in the regulation to renew basis agreements
with generators, the demand transacted with the latter is at a
minimum value, which corresponds to long-term agreements not in
force yet.
Graph
1
Source:
CAMMESA
The
plus energy contracting continues being effected by price signals
regarding supply offered by CAMMESA.
Regarding
the price of exceeding energy supplied by CAMMESA -even if it
evolves with the actual costs of exceeding generation- GU pay
CAMMESA a regularly fixed maximum price. The difference between
actual cost and regulated value generates a strong signal for
choosing to be supplied from CAMMESA without plus contract.
Additionally, as from July 2018, the differences between the actual
cost of the exceeding demands and the cap price established are no
longer individually recorded by CAMMESA as a debt of each GU, which
leads to many GU considering that the accumulated debt up to the
resolution date could not be enforceable in the
future.
Regarding
the supply support offered by plus contract, the perception of most
of GU is that the supply quality is not necessarily between when a
contract of that kind is entered into. This makes GU, in most of
the cases, decide to renew plus contracts only based on the prices
expectations.
Additionally,
the transacted energy in the renewable energy supply contracts
(MATER) grew by 93% in 2020, compared with the previous year (in
2019, 1322 Gwh were transacted, in comparison with 2555 Gwh in
2020).
Finally,
as a consequence of the competition for the price imposed by
CAMMESA and the growth of the supply alternative through renewable
energies, energy traded through plus energy contracts in 2020
decreased in comparison with 2019: 21%. And measured regarding
2013: 49%.
CPSA IN THE FORWARD MARKET
Power Plus Agreements
During
2020, with a 2% participation in installed plus power in MEM,
CPSA’s sales to the plus market represented 1.6% of the total
traded in such market, reaching 9.5 Gwh of energy, with an average
sale price of 73 USD/MWh.
RESOLUTIONS AND REMARKABLE NOTICES
Resolution
12/2019 of the Ministry of Production (27/12/2019) abolishes as
from December 30, 2019 Resolution No. 70 dated November 6, 2018
issued by the former GORVERNMENT SECRETARIAT OF ENERGY of the
former MINISTRY OF FINANCES and reestablishes section No. 8 of
Resolution 95/2013, which again grants CAMMESA the commercial
management of fuel for the generation of electric
power.
Secretariat
of Energy Resolution No. 31/2020. On February 27, 2020, the
Secretariat of Energy publishes Resolution No. 31 on the Official
Gazette whereby it establishes the criteria to calculate economic
transactions of energy and power traded by generators in the spot
market as from February 1, 2020. See description in
“Wholesale Electric Market”.
Secretariat
of Energy Note dated April 8, 2020 addressed to CAMMESA in which it
orders postponing until new notice the application of the monthly
update mechanism of the energy and power prices stated in
Resolution 31/20. This way, as from the liquidation of march sales
2020, CAMESSA stopped applying the mechanism mentioned above. Such
situation remained the same for the rest of 2020 and it has not
changed as of this date.
Secretariat
of Energy Resolution No. 354/2020. On December 1, 2020, regarding
Decree No. 892 dated November 13, 2020 (INCENTIVE PLAN FOR THE
PRODUCTION OF ARGENTINE NATURAL GAS – SUPPLY AND DEMAND
SCHEME 2020-2024) created a centralized mechanism in CAMMESA
for the dispatch of natural gas aimed at generating electricity,
based on a priority order under a gas agreement established in such
regulation. Within this framework, generators can choose adhering
to the centralized dispatch though the assignment to CAMMESA of gas
and transport that eventually each generator shall have agreed with
producers and carriers. Within this context, cogeneration units can
choose requesting reinforcement each time they are out of cost to
privilege steam delivery, assuming the corresponding cost overruns
to such reinforcing.
LIQUID
FUELS AND NATURAL GAS
Oil Market
In the
international scope, the average price of Crude Oil Brent decreased
its value by 32% in 2020, compared to the previous year, going from
an annual average of 64.1 USD/ bbl to 43.2 USD/ bbl in
2020.
In
2020, the highest registered value for Crude Oil Brent was 68.9
USD/bbl and the minimum was 19.3 USD/bbl.
As from
March 2013, through SE Resolution No. 95/13, CAMMESA centralized FO
fuel purchases of the local market. On November 6, 2018, SGE
Resolution No. 70/2018 was published, which resolution replaces
section 8 of former SE Resolution No. 95/2013. The new section
enabled Generators, Autogenerators and Cogenerators from MEM to
self-supply fuel. This did not altered assumed commitments by
Generator Agents within the MEM supply agreements with CAMMESA. It
was established that generation costs from own fuel should be
valued as per the Average Variable Cost (“CVP”, for its
Spanish acronym) recognition mechanism. The Resolution also
established that in order for Generators not to purchase their own
fuel, CAMMESA would continue with the commercial management and the
dispatch of fuel. Finally, through the Productive Development
Ministry Resolution No. 12/2019 (published in the Official Gazette
on December 30, 2019), the fuel purchase was again centralized so
as to generate electric power through CAMMESA, abolishing former
SGE Resolution No. 70/2018 and reestablishing the provisions of
section 8 of former SE Resolution No. 95/2013 and section 4 of
former SE Resolution No. 529/2014.
Gas market
The
Economic Emergency Act [[Ley de
Emergencia Económica] enacted in 2002 established the
pesification of all the agreements in dollars and of the utilities
rates. In the arena of natural gas, it meant the pesification of
supply agreements and of the rates published by
ENARGAS.
The
price of natural gas for generating Electric Power evolved by
different mechanisms from 2004 until July 2009, in which month the
Ministry of Planning, Unions of the Gas and Oil Industry and
Natural Gas Operation Companies entered into an agreement. Under
such agreement, the companies committed themselves to maintain an
activity level in exchange of an increase in the price of Natural
Gas for varied consumption sectors.
Regarding
the generation area, the price was dollarized and a price path was
paved which finished in December 2009 with a value of 2.68
USD/MMBTU for the Natural Gas of Cuenca Neuquina.
In
April 2016, Resolution MEyM 41/16 was published, by which the
natural gas wellhead price was raised for the electric power
generation sector as follows:
|
Basin of origin
|
Price (USD/MMBTU)
|
|
North
|
4.93
|
|
Neuquén
|
5.53
|
|
Golfo
San Jorge
|
4.84
|
|
Santa
Cruz
|
4.62
|
|
Tierra
del Fuego
|
4.48
|
During
the fiscal year, Resolution ENRG 1410/10, which rules natural gas
supply at national level, was applied.
Furthermore,
in 2016 new rate tables were approved for all companies of Public
Utility of Natural Gas Distribution and Transport, and it was
ordered to make an integral rates revision of each of
them.
As a
result, RTI scheduled a rate adjustment divided in 3 steps: (i)
April 2017: (ii) December 2017 and (iii) April 2018. As from April
2018, there will be six-month rate inflation
adjustments.
In July
2018, Resolution MEyM 46/18 was published, by which the natural gas
wellhead price was decreased for the electric power generation
sector as follows:
|
Basin
of origin
|
Price
(USD/MMBTU)
|
|
North
|
3.94
|
|
Neuquén
|
4.42
|
|
Golfo
San Jorge
|
3.87
|
|
Santa
Cruz
|
3.70
|
|
Tierra
del Fuego
|
3.58
|
In
December 2008, Note 66680075 was published, whereby the maximum
prices for the winter period were increased, and the prices for the
rest of the year were reduced so that during the calendar day they
were similar to the ones established in MEyM Resolution 46/18, as
per stated in the following table:
|
Basin
of origin
|
Price
(USD/MMBTU)
|
|
|
Jan-Feb-Mar-Apr-May-Sept-Oct-Nov-Dec
|
Jun-Jul-Aug
|
|
|
North
|
3.60
|
5.15
|
|
Neuquén
|
3.70
|
4.95
|
|
Golfo
San Jorge
|
3.55
|
5.10
|
|
Santa
Cruz
|
3.35
|
4.90
|
|
Tierra
del Fuego
|
3.30
|
4.85
|
In
January 2020, through Note 05333189, the Secretariat of Energy
changed the gas reference prices in the Wholesale Electricity
Market (“MEM”) as from February 2020. Such modification
based on the prices obtained during the monthly spot gas purchases
by CAMMESA during 2019. Its result derives from the free
interaction between gas supply and demand. The new values are the
ones shown in the following table:
|
Basin
of origin
|
Price
(USD/MMBTU)
|
|
|
Jan-Feb-Mar-Apr-May-Sept-Oct-Nov-Dec
|
Jun-Jul-Aug
|
|
|
North
|
2.46
|
3.80
|
|
Neuquén
|
2.67
|
4.02
|
|
Golfo
San Jorge
|
2.55
|
3.85
|
|
Santa
Cruz
|
2.36
|
3.63
|
|
Tierra
del Fuego
|
2.31
|
3.57
|
Later,
in May 2020, through Note 33627304, the Secretariat of Energy with
the argument of the COVID-19 pandemic’ impact on the
Argentine Economy, it modified the gas reference prices in MEM for
winter 2020 (June-July-August), keeping the summer reference prices
in such period:
|
Basin
of origin
|
Price
(USD/MMBTU)
|
|
|
Jan-Feb-Mar-Apr-May-Sept-Oct-Nov-Dec
|
Jun-Jul-Aug
|
|
|
North
|
2.46
|
2.46
|
|
Neuquén
|
2.67
|
2.67
|
|
Golfo
San Jorge
|
2.55
|
2.55
|
|
Santa
Cruz
|
2.36
|
2.36
|
|
Tierra
del Fuego
|
2.31
|
2.31
|
The
Argentine Executive Branch, through Decree No. 892/20 dated
November 13, 2020, approved the “INCENTIVE PLAN FOR THE
PRODUCTION OF ARGENTINE NATURAL GAS – SUPPLY AND DEMAND
SCHEME 2020-2024” (“GasAr Plan”), whose
implementation is delegated to the Secretariat of Energy. Such
“GasAr” Plan incentives the gas production in Argentine
gas basins (Neuquén and Austral”) based on a competitive
system of price auction and up to 70 MMm3/d. Gas producers
participating in the plan ensure price and quantity (values offered
and awarded in the mentioned auction) for four years (2021-2024)
versus a commitment to keep the production the same as the awarded
quantity in the auction increased by 43% (1 production unit for
each 0.7 awarded units).
As a
result of the implementation of GasAr Plan in the wholesale
electricity market (“MEM”), the Secretariat of Energy
issued Resolution 354 dated December 1, 2020 (Res. 354)
establishing the following as from January 1, 2021: (I) a gas
dispatch priority order by CAMMESA in MEM as per its origin (GasAr
Plan, imported from Bolivia by IEASA, LNG and the rest of Argentine
natural gas basins outside the GasAr Plan scheme), and (ii) that
those authorized Generators to perform the self-management of fuel
in MEM, and therefore not under the scope of Resolutions 95/2013
and 529/2014, could grant CAMMESSA the operative management of the
contracted gas volumes with producers with awarded gas volumes in
GasAr Plan and/or the contracted gas transport system(s) with
carriers and/or Distributors of natural gas, so that such
agreements (natural gas volumes and transport) could be allocated
for their consumption in thermal generation minimizing the total
MEM supply costs. This way, the total natural gas and the
associated transport and distribution service in MEM shall be
operatively managed and optimized by CAMMESA (Centralized
Dispatch”).
In
particular, Res. 354 established that the generation agents with
oil self-procurement obligations within the framework of Resolution
No. 287/2017 shall have the option of rendering the mentioned
obligations without effect, but not the respective transport
capacity, which must stay as obligations for the Generator and
operatively assigned to CAMMESA to the effect of management in the
Centralized Dispatch.
Finally,
as a result of the implementation of GasAr Plan (in price and
allocated quantities, the Secretariat of Energy, through Resolution
No. 354/2020 dated December 1, 2020, established the
following:
●
Gas dispatch based
on priority and not based on its cost, as per the following
order:
1.
Bolivian
“Take or pay” natural gas contracted by
IEASA.
2.
“Take or
pay” gas assigned to MEM of GasAr Plan.
3.
Remaining gas up to
the daily maximum quantity of GasAr Plan (between 2nd and 3rd in
priority, it includes 100% of natural gas of GasAr
Plan).
4.
Other firm
commitments of CAMMESA (as of the date of these Annual Report,
CAMMESA did not have other firm commitments apart from GasAr Plan)
and/or LNG (Liquefied Natural Gas managed by IEASA),
and
5.
CAMESSA spot
auctions of natural gas, acquired spot natural gas by Generators
authorized to have management and not operatively assigned to
CAMMESA.
●
Those authorized
Generators to perform the self-management of fuel in MEM
(Energía Plus and/or Projects Resolution 287), and therefore
not under the scope of Resolutions 95/2013 and 529/2014, could
grant CAMMESSA the operative management of the contracted gas
volumes with producers with awarded gas volumes in GasAr Plan
and/or the contracted gas transport system(s) with carriers and/or
Distributors of natural gas, so that such agreements (natural gas
volumes and transport) could be allocated for their consumption in
thermal generation minimizing the total MEM supply costs and
respecting the priority order previously mentioned.
●
As from January
2021, the new natural gas reference prices from Argentine basins in
MEM were defined for the value of quantities of such fuel not
included in GasAr Plan
|
Basin
of origin
|
Price
(USD/MMBTU)
|
|
|
Jan-Feb-Mar-Apr-Sept-Oct-Nov-Dec
|
May-Jun-Jul-Aug-Sept
|
|
|
North
|
2.17
|
3.31
|
|
Neuquén
|
2.30
|
3.50
|
|
Golfo
San Jorge
|
2.20
|
3.35
|
|
Santa
Cruz
|
2.07
|
3.16
|
|
Tierra
del Fuego
|
2.04
|
3.11
|
Purchase of Natural Gas
On
December 27, 2019, Resolution RESOL-2019-12-APN-MDP was published,
which abolished as from December 30 of the same year, Resolution
RESOL-2018-70-APN-SGE#MHA, which was created on November 6, 2018,
taking away from Generation Agents, Co-generators and
Auto-generators of MEM the possibility of self-procuring their own
fuel for the generation of electric power, leaving the
self-procuring of fuel under the sole responsibility of
CAMMESA.
However,
and within the self-procurement obligations framework assumed in
our cogeneration projects Lujan de Cuyo and San Lorenzo, and the
authorization to self-procure the related fuel to out contracts
with Energía Plus, CPSA acquired the following amount of
natural gas during 2020:
|
|
CPSA
|
CTM**
|
San Lorenzo*
|
|
m3.
|
|||
|
Jan-20
|
0
|
18,088,392
|
0
|
|
Feb-20
|
0
|
16,072,372
|
0
|
|
Mar-20
|
0
|
16,226,818
|
0
|
|
April-20
|
0
|
18,927,528
|
0
|
|
May-20
|
0
|
18,656,982
|
0
|
|
Jun-20
|
0
|
17,998,719
|
0
|
|
Jul-20
|
0
|
19,853,079
|
0
|
|
Aug-20
|
0
|
21,460,971
|
0
|
|
Sept-20
|
0
|
19,938,216
|
0
|
|
Oct-20
|
0
|
17,757,944
|
41,589
|
|
Nov-20
|
0
|
19,978,440
|
1,930,951
|
|
Dec-20
|
0
|
20,382,345
|
0
|
|
TOTAL
|
0
|
225,341,806
|
1,972,540
|
|
227,314,346
|
|||
*Own
purchases related to commercial authorization tests of the turbogas
unit.
**Own
purchases related to the commercial operation of Cogeneration
Luján de Cuyo (Gas for Steam and Electric Power) and covering
of Energía Plus agreements.
Imports of Natural Gas
As it
can be seen in the following chart, the imports of natural gas
showed an increase regarding 2019, being this last year the one
with lower imports in the last 8 years. This natural gas import
increase accompanied the need generated by the fall in the national
production registered in 2020.
|
Average (MMm3/d)
|
2013
|
2014
|
2015
|
2016
|
2017
|
2018
|
2019
|
2020
|
Differences 2020 vs. 2019
|
|
|
Volume
|
Percentage
|
|||||||||
|
LNG
|
16.20
|
15.2
|
13.2
|
12.3
|
12.2
|
9.78
|
4.76
|
5.18
|
0.4
|
8.7%
|
|
Bolivia
|
16.48
|
16.4
|
15.7
|
18.1
|
18.1
|
16.5
|
14.1
|
15.1
|
1.0
|
7.1%
|
|
Chile
|
0.00
|
0.00
|
0.98
|
0.8
|
0.8
|
0.58
|
0.00
|
0.00
|
0.0
|
0.0%
|
|
Total
|
32.7
|
31.6
|
29.9
|
31.1
|
31.1
|
26.8
|
18.8
|
20.2
|
1.4
|
7.5%
|
Source: ENARGAS.
Argentine production of natural gas
The
injection of Argentine gas at a national level decreased, compared
to 2019, with production falls in basins Neuquina and Austral, and
stability in the north basin, as can be observed in the following
table. The decrease presented in the Neuquina and Austral basins is
mainly explained by the restraints for the development of
unconventional gas wells, due to the economic and price signals
present since late 2019.
|
Average (MMm3/d)
|
2013
|
2014
|
2015
|
2016
|
2017
|
2018
|
2019
|
2020
|
Differences 2020 vs. 2019
|
|
|
Volume
|
Percentage
|
|||||||||
|
Neuquén
|
47.3
|
48.2
|
51.5
|
53.9
|
54.5
|
60.9
|
74.1
|
66.1
|
-8.0
|
-10.8%
|
|
Austral
|
32.3
|
31.0
|
30.6
|
32.3
|
31.8
|
30.4
|
34.2
|
31.9
|
-2.3
|
-6.7%
|
|
North
|
6.9
|
5.8
|
4.9
|
5.7
|
5.7
|
3.0
|
3.9
|
3.9
|
0.0
|
0.4%
|
|
Total
|
86.5
|
85.0
|
87.0
|
91.9
|
92.0
|
94.3
|
112.2
|
102.0
|
-10.3
|
-9.2%
|
SOURCE: ENARGAS.
Resolutions
No. 1/2013 and 60/2013 by the Commission of Planning and Strategic
Coordination of the Argentine Plan of Hydrocarbon Investments
remained applicable. By virtue of such regulations, certain volumes
of gas production from the producers adhering to said regulations
were paid at an incremental price for the gas production, which may
amount to 7.5 USD/MMBTU. Such Plan ended on December
2017.
Resolution
MINEM No. 46/2017 “Incentive
program for investments in the development of natural gas
production from unconventional reservoirs” (amended by
Resolution MINEM 419/2017) is applicable from January 2018 until
the end of 2021, and it is aimed only at some shale and tight gas
projects. This Resolution includes a price path which starts at 7.5
USD/MMBTU for the first year and it then decreases annually at a
rate of 0.50 USD/MMBTU.
Therefore,
the price evolution is the following:
|
Year
|
USD/MMBTU
|
|
2018
|
7.50
|
|
2019
|
7.00
|
|
2020
|
6.50
|
|
2021
|
6.00
|
As
mentioned in point “Gas Market” in this Annual Report,
the Argentine Executive Branch issued Decree No. 892/20 dated
November 13, 2020, by which the “INCENTIVE PLAN FOR THE
PRODUCTION OF ARGENTINE NATURAL GAS – SUPPLY AND DEMAND
SCHEME 2020-2024” was approved.
Through
Resolution No. 391/20, the Secretariat of Energy awarded the
volumes of the Plan GasAr put out to tender. The most relevant
values are the following:
|
Period
|
Volume awarded MMm3/day
|
Term
|
Current net value (VPN) USD/MMBTU
@10% annual
|
|
Annual
|
67.43*
|
2021-2024
|
3.410***
|
|
Winter
season period
|
3.60**
|
*48.95
MMm3/day
Neuquén and 18.48 MMm3/day
Austral
**4.57 MMm3/day Neuquén and
0.68 MMm3/day
Austral
*** Estimated value from the information published by the Argentine
Secretariat of Energy
After
that, in February 2021, the Secretariat of Energy, within the
threshold of GasAr Plan called for the second round of the bidding
process for the awarding of natural gas volumes additional to the
ones awarded by Resolution No. 391/20 for the winter periods
2021-2024. By Resolution No. 169/2021, the Secretariat of Energy
awarded the volumes put out to tender, as described in the
following table:
|
Winter period
(May-Sept)
|
Average volume
MMm3/day
|
Price
USD/MMBTU
|
|
2021
|
3.5*
|
4.742
|
|
2022
|
2.5
|
4.742
|
|
2023
|
2.5
|
4.742
|
|
2024
|
2.5
|
4.742
|
*Average Jun-Sept. There were no bids for May/21
Natural gas consumption
The
consumption of gas at a national level decreased, compared to 2019,
with significant falls in the Commercial, Official Entities,
Industrial and CNG sectors, as can be observed in the following
table. This reduction is mainly explained by the effect of the
“quarantine” declared by the government, which imposed
commuting and work attendance restrictions from March 2020, forcing
the population to stay at their houses. As a counterpart, an
increase of residential demand can be observed, as a result of such
isolation policies.
|
Average (MMm3/d)
|
2013
|
2014
|
2015
|
2016
|
2017
|
2018
|
2019
|
2020
|
Differences 2020 vs. 2019
|
|
|
Volume
|
Percentage
|
|||||||||
|
Residential
|
28.7
|
27.7
|
28.0
|
29.5
|
26.4
|
26.2
|
25.3
|
26.3
|
1.0
|
4.1%
|
|
Commercial
|
3.7
|
3.6
|
3.7
|
3.9
|
3.5
|
3.4
|
3.9
|
3.0
|
-0.9
|
-22.3%
|
|
Official entities
|
1.2
|
1.2
|
1.2
|
1.3
|
1.2
|
1.2
|
1.2
|
0.9
|
-0.3
|
-25.8%
|
|
Industries
|
33.9
|
34.2
|
34.6
|
33.1
|
34.2
|
36.1
|
37.0
|
35.0
|
-2.1
|
-5.6%
|
|
Power Stations
|
39.6
|
39.8
|
40.9
|
43.7
|
47.3
|
47.1
|
41.4
|
39.0
|
-2.5
|
-6.0%
|
|
SDB
|
2.8
|
2.7
|
2.9
|
3.0
|
2.9
|
2.9
|
2.7
|
2.3
|
-0.4
|
-13.1%
|
|
CNG
|
7.6
|
7.8
|
8.1
|
7.7
|
7.0
|
6.6
|
6.7
|
5.1
|
-1.6
|
-23.9%
|
|
Total
|
117.6
|
117.1
|
119.3
|
122.1
|
122.5
|
123.5
|
118.2
|
111.6
|
-6.6
|
-5.6%
|
|
SOURCE: ENARGAS.
|
|
|
|
|
|
|
|
|
|
|
Liquid fuels supply
FUELOIL (FO)
In
Puerto Nuevo and Nuevo Puerto Power Stations: During 2020, the
consumption of this fuel was approximately 268 thousand tons, which
were received through 35 shipments from different depths to be
consumed in the turbosteam units. FO consumption was 348% higher
than in 2019 due to a lower dispatch of the turbo steam units with
this fuel.
Centrales
Térmicas Mendoza (CTM): during 2020, FO consumption in CTM was
approximately 10,500 tons, which were re-stocked with 396
trucks.
All FO
was supplied by CAMMESA on behalf and order of the Argentine
Government, as established in Resolution SE 95/2013.
GASOIL (GO)
Nuevo
Puerto Power Station: GO consumption in the Combined Cycle (CC) by
request of the system during 2020 was approximately 119 thousand
m3. This GO consumption in 2020 was 259% higher than the
consumption in 2019, due to a lower dispatch of the CC with this
fuel. For this operation, 13 vessels from different depths entered
with GO. The deliveries of GO were carried out entirely by CAMMESA,
pursuant to Resolution 95/2013.
Brigadier
López: GO consumption of the gas turbine (GT) of this station
was approximately 7,600 m3. 6,700 m3 of this fuel were re-stocked
with 196 trucks. The deliveries of GO were carried out entirely by
CAMMESA, pursuant to Resolution 95/2013.
During
2020, in CTM there was no GO consumption in the gas turbines
required by CAMMESA for the provision of the system demand. There
was, however, GO consumption associated to the commercial
authorization and the commissioning of the gas turbines LdCTG26 and
LdCTG27, within the framework of the cogeneration project awarded
under Res. SEE 287/2017. The GO used for the commercial
authorization and commissioning of the machines was purchased from
YPF, for a total amount of 149 m3, from which 75 m3 were used for
said operation.
For the
San Lorenzo Cogeneration Station, cogeneration project awarded
under Res. SEE 287/2017, GO was downloaded to be used for the
commercial authorization and the commissioning of the machine
during December 2020. It was purchased from CAMMESA for a total
amount of 3,159 m3 to be used for the commissioning with
GO.
BIODIESEL
Central
Puerto, Centrales Térmicas Mendoza and Brigadier López:
There was no biodiesel consumption in these power stations during
2020.
MAINTENANCE
During
the 2020 period, different maintenance and inspection works were
performed for the correct operation and good functioning of the
station.
The
most relevant data regarding operation and maintenance are
described below:
PUERTO AND NUEVO PUERTO SITES
The
main maintenance tasks performed during this period were the
following:
Unit No. 5
During
this period, the unit was not stopped for scheduled maintenance
works.
Routine
maintenance works were performed in the facilities and the
equipment of the unit.
Unit No. 6
During
this period, the unit was not stopped for scheduled maintenance
works.
In
particular, works were performed in Bearing no. 2 of the turbine
due to issues in the axial displacement.
Routine
maintenance works were performed in the facilities and the
equipment of the unit.
Unit No. 7
During
this period, the unit was not stopped for scheduled maintenance
works.
Routine
maintenance works were performed in the facilities and the
equipment of the unit.
Unit No. 8
During
this period, the unit was not stopped for scheduled maintenance
works.
Routine
maintenance works were performed in the facilities and the
equipment of the unit.
Unit No. 9
Minor
MAPRO was performed from 07/11/2020 to 29/11/2020. These are the
most important works:
●
Power transformer:
electric testing and oil treatment in the bushings of the Main
Transformer
●
Boiler: Repairing
of expansions and ducts. Repairing of insulation in pipes and
ducts. Repairing of ashtrays
●
BOP: General
repairing of the Circulation Bomb A. Preventive maintenance of the
engine of the Circulation Bomb.
COMBINED CYCLE TG 11
During
this period, the unit was not stopped for scheduled maintenance
works.
Routine
maintenance works were performed in the facilities and auxiliary
equipment of the unit, including the boroscope inspection of the
gas turbine. Some air filtering elements were replaced in the
entrance of the Turbine.
COMBINED CYCLE TG 12
During
this period, the unit was not stopped for scheduled maintenance
works.
Routine
maintenance works were performed in the facilities and auxiliary
equipment of the unit, including the boroscope inspection of the
gas turbine. Some air filtering elements were replaced in the
enterance of the Turbine.
COMBINED CYCLE TV 10
During
this period, the unit was not stopped for scheduled maintenance
works.
Routine
maintenance works were performed in the facilities and the
equipment of the unit.
Installation
and commissioning of the cooling system of the refrigerator circuit
in the vacuum pumps in the condenser.
BALANCE OF PLANT
The
emergency back-up power generation set was purchased and
installed.
Upgrade
of 18 SEPAM protections in 6 Kv fuses.
Upgrade
of the Protection of the Main Transformer of TG11 RET 316 with RET
650.
MENDOZA SITE
The
Maintenance area carried out the performance of all the MAPRO Plans
and the corrective works for the year, adapting the work teams
based on the different scenarios that arouse during the
pandemic.
The
most relevant works were the following:
TG23-TG24
The
plant’s personnel performed the corrective and preventive
maintenance tasks in both generation units and BOP equipment
(Balance of Plant).
CC TG25-TV15
From
April 11, 2020, the Combined Cycle remained out of service in an
unscheduled manner, for 90 days due to a failure followed by a fire
in the main Transformer 25 BAT of the TG25. Such forced
unavailability called for the replanning of the maintenance program
established for the units of the Combined Cycle. The most important
activities were:
1.
Repairing the failure produced in the
main transformer of the TG25: the bars of the isolated phase
of 15.75 kv were rebuilt, which bars bind the outlet of the
Generator with the Transformer. The area and the
Transformer’s box were reconditioned to accommodate a back-up
equipment available in CPSA Bs. As. This equipment was transported
from Bs. As. and the back-up ZTR Transformer was installed in
Mendoza Site.
2.
Minor Inspection in TG25: in
June 2020, a minor inspection in TG25 was performed. This
inspection enabled the extension of the next scheduled maintenance
by 4,000 hours. This allowed for the displacement of the MAPRO
date, initially scheduled for November 2020 to April 2021 and for
the manufacturing and delivering of a new Transformer in Mendoza
Site to replace the damaged one.
3.
Various tasks in HRSG and BOP:
taking advantage of the 90-day window during which the CC was out
of service, the tasks which had direct impact in the future
availability of the units were performed and/or the tasks whose
duration was critical for the MAPRO rescheduled for April 2021. The
aim was to minimize service outages after the commissioning of the
Transformer and to reduce changes in the terms of the following
maintenance.
After
performing all the corresponding electric testing in the
Transformer, on July 10, the Combined Cycle resumed
service.
TG22
The
Plant’s personnel carried out periodic inspections in the Gas
Turbine every 1,000 hours of operation, with the aim of controlling
the status of the combustion chamber. Additionally, other
corrective and preventive maintenance tasks were performed in
different equipment of BOP.
TV11
Preventive
and corrective maintenance tasks were performed during the periods
in which the unit did not have dispatch. The most important tasks
were: valves repairing, rotative air heaters, AP heaters and
testing of electromechanical equipment.
TV12
From
July 19, 2020, the unit remained out of service, in a non-scheduled
manner, for 120 days due to a failure in row L-1 of the Steam
Turbine. After different boroscope inspections in the turbine, it
was decided to perform a major maintenance in the
unit.
Due to
the pandemic and the impossibility of having specialists from
abroad in site, a local company was hired for the development of
the tasks. The most important activities were: a 310 mm cut from
the root of row L-1, replacement with available parts in stock of
row L-0 and complete balancing of the rotor.
Unit 12
resumed service on 20/11/2020.
TG26
The
plant’s personnel performed preventive and corrective
maintenance in the unit with no relevant news.
In
October 2020, with approximately 10,000 EOH, personnel from Siemens
Field Service carried out the first A-type inspection under the LTP
contract in the gas turbine. The inspection developed without any
news to highlight.
TG27
The
plant’s personnel performed preventive and corrective
maintenance in the unit with no relevant news.
In
October 2020, with approximately 10,000 EOH, personnel from Siemens
Field Service carried out the first A-type inspection under the LTP
contract in the gas turbine. The inspection developed without any
news to highlight.
Mini hydro
Preventive
and corrective maintenance tasks were performed throughout the
period without any relevant news.
Dike and Water Plant
Preventive
and corrective maintenance tasks were performed on the gates of the
Dike and Water Plant, in order to comply with the plant’s and
DGI’s (Irrigation General Department) operating
requirements
PIEDRA DEL AGUILA SITE
Pursuant
to the Seasonal Maintenance for the Generating Units Program
(MAPRO) for the year 2020, the following interventions were carried
out:
Between
March 4 and March 9, 2020, Major MAPRO was performed in Unit 3,
with 100,076 engine hours. The most relevant tasks
were:
●
Complete reasiting
of the stator winding of the Generator
●
Visual revision of
the capacitors of Phases S and T switches and
normalization
●
Adjustment of the
busways of 15.75 kv
●
Revision and minor
repairs of the busbars of the stator winding of the
Generator
●
Replacement of
auxiliary contacts of the main system and back-up of the Phases R,
S and T switches
●
Protection testing
of the Generators and Transformers GSU
● Revision
of the Automatic Speed Regulator (RAV)
●
Revision of
sources, field switch, striking switch and excitation
transformers
●
Revision of the
fastening status and leader adjustment outlet of 500 KV of the GSU
Transformer (Phases R, S and T)
●
Electric
testing to GSU transformers (3 phases) and stator winding of the
Generator
●
Installation of a
new level sensor in CE
●
Revision of
auxiliary boards in the Unit
●
Signal testing in
the Control System
●
Mapping and filling
of hollow spaces in the Impeller
●
Exploration and
adjustment of blade gaps of the distributor of the Speed
Regulator
●
Revision of the
air-admission valve of the Impeller
●
Replacement of
water hose for refrigeration of the Axis Seal
●
Replacement of the
safety valve in the compressed air pump (SAP)
●
Internal revision
of coolers #1 and #9 in the thrust bearing
●
Revision of
segments #1 and #9 in the thrust bearing
●
Revision of
mechanic seal, verification of carbon and track status
●
Purification of
oils in bearings and regulator
Between
25/11 and 04/12/2020, Minor MAPRO was performed in Unit 4, with
121,274 engine hours. The main tasks were:
●
Revision of the
fastening status and leader adjustment outlet of 500 KV of the GSU
Transformer (3 phases)
●
Electric testing to
the GSU Transformers (3 phases)
●
Electric testing to
the auxiliary transformer PT04A
●
Replacement of
auxiliary contacts in the main system and backup of the switches in
Phases R, S and T
●
Revision of the
Automatic Speed Regulator (RAV)
●
Revision of
sources, field switch, striking switch and excitation
transformers
●
Adjustment of the
busways of 15.75 kv
●
Revision and minor
repairs of the busbars of the stator winding of the
Generator
●
Electric testing in
the Generator
●
Exploration and
adjustment of blade gaps of the distributor of the Speed
Regulator
●
Installation of new
inflatable seals in flexible joint
●
Replacement of
isolation valve of the principal valve of the Cooling
System
●
Purification of
oils in bearings and regulator
●
Revision of Axis
Seal
●
Replacement of
security valve in the pressure-oil system of the Speed
Regulator
●
Replacement of the
36 water-isolation valves in the coolers of the thrust
bearing
●
Revision of
emergency gate and headworks
●
Mapping and
polishing of hollow spaces in Impeller
●
Revision of Axis
Seal
●
Revision and
replacement of the air-admission valve of the Impeller
●
Replacement of the
safety valve in the compressed air pump (SAP)
Brigadier Lopez SITE
Since
June 14, 2019 such Station was acquired by Central Puerto S.A. It
operates as open-cycle. It is expected that Cycle Closure will be
accomplished in the future.
Because
of this, the Station has had a very low, almost null, dispatch
recently. Therefore, all the Schedule Maintenance per EOH by
Siemens has been delayed.
The
works developed both in the auxiliary systems of the TG as the BOP
were performed by the Plant’s personnel. The works consist on
executing the Maintenance Plans of such equipment achieving goals,
such as, percentage of Preventive vs. Corrective of approximately
90%. Due to the pandemic situation during 2020, the personnel was
reduced, therefore it was decided to prioritize corrective
measures.
The
main tasks were:
●
Conservation of
work equipment:
o
Conditioning of
auxiliary equipment of TV, cleaning, painting and
improvement
o
Drying of the
recovering boiler of combined cycle
o
Electric lightening
installation in TV buildings and construction sites
●
Recording and
annual verification of containers subject to pressure
●
Inspection and
verification of wiring and relative vibration sensors in the
bearings of the compressor
●
Fire extinguishing
test of CO2 system Minimax
●
Electric testing in
the machine generator
●
Hiring service of a
Technical Representative in the gas facilities
●
Dismantling,
repairing and assembly of the engines of the system fin fans cooler
of the generator and lubrication
●
Repairing of
membrane in the precinct TK of GO
●
Technical and
environmental audit in GO tanks – Resolution 785
●
SMEC audit by
CAMMESA in nodes 21, 23 and 24
●
Improvements:
o
Verification and
addition of alarm signs of the Minimax system to T3000
o
Installation of the
monitoring system of symmetry of batteries in chargers
o
Replacement of
floaters in pontoon of provisional tapping point
o
Acquisition and
installation of a new pump in pontoon of tapping point
o
Construction of
walls in the perimetral fence of the plant
Terminal 6 site (San Lorenzo Cogeneration Station)
COD TG
Simple Cycle with Natural Gas: 21.11.2020
SIEMENS LTSA – CCPSL Agreement (as from November 21,
2020)
Preventive
●
3 x monthly PM of
revision/replacement of filters in generator 1
●
5 x weekly PM of
revision excitation brushes 5
●
PM update of
antivirus in control system T-3000
●
PM Chromatograph
and dew point
●
PM
revision/replacement of silica gel in transformers
●
PM monthly revision
of machine switch
Corrective
●
Readjustment of
seismic sensors in the generator
●
Reorientation of
flame-detecting cabinets
●
Modification of
position of lube oil level in tank
●
Revision of
pressure switch inlet surge
●
Replacement of
jacking pump
●
Adjustment of
suction of jacking pump
●
Revision of the
transmitter of vacuum pressure in the lube oil tank
●
Adjustment of
thermostatic valve cooling circuit of lube oil
●
Readjustment of the
axis jacking system
CCPSL - Maintenance
●
Readjustment of
sockets for safe voltage in offices
●
Reordering of
communications rack
●
Power supply in the
kitchen of administration building
●
Parameters’
adjustment in gas flow meters
TRANSENER –O&M Agreement Electro-duct 500kV. (as from
August 1, 2020)
●
Disconnection and
reconnection of air line with wire
●
Adjustment of
insulators in LEAT due to intersection with FFCC
●
Addition of missing
anti-climbers in towers
●
Replacement of
clamps in guard wife
●
Land monthly
inspection
PGS –O&M Agreement Gas distribution pipe branch II (as
from January 18, 2020)
●
PM periodic
inspections with different frequencies
TGN –O&M Agreement Gas distribution pipe branch I (as
form September 2020)
●
PM periodic
inspections with different frequencies
●
PM potentials
verification
●
PM losses
detection
HUMAN
RESOURCES
Personnel administration, benefits, training, occupational
medicine, communication and relations with the
community
Usina
Digital, an online platform for the self-management of HHRR, was
consolidated successfully. It enables each employee of Central
Puerto to update their information and carry out frequent
administrative applications. The platform “Recibo
Digital” [Digital Slip] was implemented with equal success,
allowing for the access to salary slips virtually, and the
consultation, signature and downloading of the slip at any moment
and anywhere.
Based
on the detection of training needs, the 2020 training plan was
prepared. Due to the pandemic, some actions were modified in order
to accompany and train employees virtually, with degrees aiming at
the prevention of COVID 19; communication; effective meetings in
the virtual space; reflection spaces in a pandemic, among others.
2830 training hours were distributed in the Company’s
sites.
Regarding
the recruiting and selection processes, 2765 resumés were
received for the positions published, and 207 applicants were
interviewed. All positions were covered in a timely
manner.
During
this period, we continued to develop activities to reflect upon
gender equality, providing to different plants the virtual
workshop: “Challenges for women during the
pandemic”.
Regarding
Occupational Medicine, the scheduled anti-flu and anti-tetanus
vaccination campaigns were accomplished, and other actions towards
protecting the health of our collaborators, such as virtual
workshops in all sites about the prevention of COVID 19 in working
environments, as well as the importance of complying with active
protocols on this matter. An electronic health affidavit was
implemented for a safe entry to the sites, a telephonic assistance
system available 24 hours. for medical consultations and the
development of a telemedicine circuit which will facilitate access
to the services of the occupational medicine system.
We
continued working on the aim of keeping a good working environment,
with activities such as visits of families and schools to the
plants, delivering of school supplies at the beginning of the
school year to the kids of the employees and presents for
Children’s day and Christmas.
The
Company, both through the Employment Policy and the Code of
Business Conduct, grants equal employment opportunities to the
individuals who qualify for a position, regardless of their race,
sex, religion, background, or any other differencing factor,
besides the ones established by law. Any individual who complies
with the eligibility criteria for the positions applied for shall
have the same level of opportunities in all aspects of the working
relation, including recruiting, hiring, promotions, transfers,
compensation level, training selection, development and termination
of the working relation.
ENVIRONMENT
Our commitment
General
Management assumes the commitment to:
●
Manage the
Environment, Quality, Safety and Occupational Health areas to
achieve the business goals and to comply with the regulations and
additional requirements to which the Company voluntarily subscribes
to
●
Consider
Environment, Quality, Safety and Occupational Health as a sole
priority unified during office
●
Establish, spread
and promote aims that tend to the continuous improvement of its
processes and activities in general, developed by their own
personnel or third parties
●
To provide all
necessary resources and permanent training required to comply with
the aims established and the development of the processes and
activities in general
●
To involve all
levels of the organization providing intervention, participation
and consultation spaces in the processes of the management
system
ENVIRONMENT, QUALITY, SAFETY, HYGIENE AND OCCUPATIONAL
HEALTH
Central
Puerto, through the operation of its stations, produces electric
power and steam and trades these goods in the Argentine and
regional electric market in a responsible way, with priority put on
quality and protection of the environment.
The
Environment
management is carried out towards Sustainable
Development and applying the following
principles:
●
Prevention of
environmental pollution controlling the impact of the activities
developed
●
Rational use of
energy, promoting the reduction of waste and recycling
●
Preservation of
natural resources and environmental balance
●
Improvement of the
quality of life of the community in general
The
Quality
of the processes is managed so as to satisfy the requirements of
stakeholders, ensuring that the production in the generation units
is carried out, maximizing the principles of:
●
Safety
●
Availability
●
Reliability
The
management of Safety and Occupational
Health will be aimed at preserving the integrity of the
individuals and the assets of the Company and third parties’,
assuming:
●
All accidents and
diseases in the workplace can be avoided
●
All personnel who
develop activities in the plants are responsible for the compliance
with the Safety and Occupational Health regulations
established
●
Awareness of all
individuals contributes to achieving a sense of well-being in the
workplace and a better personal and collective development of those
who are part of the working community
The
commitment of Continuous
Improvement forces us to review our integrated policy and
the aims proposed for their permanent adjustment to the changes
required by the community, the
regulations in force and our clients and shareholders.
INTEGRATED MANAGEMENT SYSTEM
Central
Puerto identifies, for the correct operation of its integrated
management system, sustainable and participative processes which
enable the implementation, in everyday life, of the principles
established by the Board in the integrated policy of environment,
quality, safety, hygiene and occupational health, ensuring the
availability of human, material and financial
resources.
In
order to keep and achieve the continuous improvement of the
management system, we use a model based on
PLANNING-MAKING-VERIFYING-ACTING, and it may involve one or more of
the following systems:
●
Quality management
system
●
Environmental
management system
●
Safety and
Occupational Health management system
“Quality and Environment systems are certified by ISO
9001:2015 – ISO 14001:2015 and OHSAS
18001:2007.”
Management indicators
In
order to ensure Continuous
Improvement, our Integrated Management System (SIG)
consolidates all the internal and external findings which result
from the personnel inspection, internal and external audits and
those created by controlling entities. All this enables the
production of consolidated reports and to elaborate actions towards
continuous improvement in order to ensure the best performance of
the SIG and a correct management analysis.
Natural resources management
Energy
Following
the guidelines of our Integrated
Policy, and our commitment to the environment within a
context of sustainable development, we focus on having each of our
generation plants and our construction projects use and consume
energy in an efficient manner. 100% of the fuel is used for the
generation of electric power and steam in our thermal
stations.
Water
Our
generation plants get water from superficial and underground
sources complying with the authorizations and requirements from
hydric authorities, in order to keep balance in the ecosystems with
which they interact as well as the health and well-being of the
individuals.
In the
case of our hydroelectric station, there is practically no water
consumption in the process of power generation, whereas in the
thermal station, water is used for the process of cooling and steam
production.
The
water used for the cooling process (rivers) is previously filtered,
generating a positive impact in the ecosystem because, at the
moment of discharge, it is done free from foreign substances or
waste. Monthly controls are performed in order to verify the
compliance with the discharge parameters to the superficial
watercourse. Values are submitted to the ENRE through its
website.
Monthly
controls of phreatic water are carried out, taking samples from
monitoring wells strategically located.
Effluents
Effluents
generated during the different stages of the process of our
generation plants are discharged in neutralization pools, where the
corresponding tests are performed in order to ensure their
discharge complying with the legal requirements in
force.
In the
plants where this is possible, effluents are treated so as to reuse
the water for our green spaces.
Waste
Waste
generated as a result of our activities is source-separated and
then transported to its final disposal.
We
focus on:
●
Complying with the
requirements of our stakeholders and other
requirements
●
Minimizing waste
generation
●
Promoting reusage
and recycling
●
Coordinating with
our service providers the pickup and final disposal of waste which
result from awarded works
Since
2018, Central Puerto has conducted a campaign of “Waste
reduction” and one of the main awareness actions was the
reduction of paper for printing and plastic waste such as plastic
cups. This action enabled us to generate a reduction of more than
30% of the consumption of this type of supplies.
The
generation of Recyclable Waste followed the levels of 2019, in
spite of the peculiarities of the COVID-19 pandemic. It was mostly
formed by carton and PET which, as usual, was picked-up by urban
recycling workers in part, and the rest was donated to
Fundación CONIN.
The
environmental awareness campaign continued on the subject of Source
Separation and final disposal of batteries.
Biodiversity
Monitoring
of accidents rate with birds and bats continued in our wind farms,
as part of the Biodiversity Action Plans, as well as the
reforestation of the caldenal tree and the adaptive management of
meadows in such parks where these measures were detected as an
opportunity of positive gain for the reproduction of the Pampas
meadowlark.
During
2020, Pampas meadowlarks and their nests were detected in the areas
where aerogenerators operate, which proves that there was no
displacement of these birds for the presence of the
mills.
CORONAVIRUS – COVID 19
On
March 11, 2020, the World Health Organization declared COVID-19 as
a pandemic. As a consequence, several measures were adopted by the
Argentine Government and other governments in the world. However,
the virus continues to expand globally and, to this date, it has
affected more than 150 countries and territories around the world,
including Argentina. To this date, the coronavirus outbreak has
caused a significant social and market disruption.
In
addition, it cannot be prevented how the disease will evolve in
Argentina or what other restrictions the government may impose. By
the end of 2020, vaccination campaigns to prevent COVID-19 started
in scarce amounts until the arrival or fabrication of the vaccines
at a large scale.
As
mentioned before, on March 20, 2020 the Argentine government issued
Decree No. 297/2020 establishing a preventive and mandatory social
isolation policy (“the Quarantine” or
“ASPO”, indistinctly), as a public health measure to
contain the effects of the Covid-19 outbreak. Such decree
established that during the Quarantine, people must remain in their
residence and refrain from going to their workplaces, travelling
long distances or going to public spaces. Since the adoption of the
Quarantine, the government has extended it in several
opportunities, and from July 2020, they established the preventive
and mandatory social distancing policy (“DISPO”) in
some jurisdictions at first, and then in the whole territory by the
end of 2020. Currently, DISPO is still in force in all the
territory until March 12, 2021 (DECNU No. 155/21, Official Gazette
28/2/21).
Regarding
the activity of the Company, Decree No. 297/2020 exempted it from
the ASPO and from the prohibition of minimum shifts to ensure the
operation and maintenance of electric power generators (see point
23, section 6 of Decree 297/20, and subsequent and complementary
regulation). In addition, on April 7, 2020, pursuant to
Administrative Decision No. 468/2020 of the Cabinet, all private
energy infrastructure works were declared an essential activity and
were exempted from the ASPO. This measure applied for the works of
Cogeneration in San Lorenzo, Santa Fe Province and the wind farms
under construction.
It must
be noted that the Company, during 2020, has adopted several
measures to protect the health of all the personnel who work in the
maintenance and operation of the generation units, as well as other
ongoing works of the Group. Some of the measures include the
following: a) isolation of the teams that operate the different
units of the Group to prevent contact between the different groups,
b) avoid contact between the personnel of different shifts, c) use
of personal protection and additional health measures, d)
implementation of virtual meetings, e) identification of key
personnel so as to have backup teams should any problem arise, the
rest of the non-essential personnel remained working remotely at
the beginning of the Quarantine, f) the preparing and publication
of plans and/or protocols of health and safety and hygiene both for
the operating stations and the work under execution. These measures
to protect the personnel have been effective, and to the date of
this report, we have registered a low level of cases within the
personnel of the Group.
FINANCE
ANALYSIS
OF THE RESULTS FOR THE PERIOD
During
2020, the Company recorded an operating profit of $27,945,25
million, whereas in 2019, the profit was $ 38,185,68
million.
The
main causes for this variation are: a) lower revenues from ordinary
activities in the segment of electric power generation from
conventional sources, as a result of the change introduced by Res.
31/2020 as from February 2020, b) lower income from exchange
difference net and clients’ interest mainly generated by CVO
credits and c) lower income due to the impairment of property,
plant and equipment. This was partially offset by a) higher income
from ordinary activities in the segment of electric power
generation from renewable sources as the result of the beginning of
the operation of the wind farms Manque (at its full capacity), Los
Olivos and La Genoveva I during this year, and b) a lower cost of
sales recorded for this period as a result of lower purchases of
natural gas.
The
operating profit mentioned before suffered a reduction due to
financial income, mainly as a consequence of: a) the negative
income from exchange difference and b) income from interest derived
from loans. This was offset mainly by a higher income from the
change on monetary position and, at a lesser extent, higher income
from the ownership of financial assets at their fair
value.
As a
consequence of the aforementioned, net profit before income tax for
2020 was $ 12,075,91 million, whereas in 2019 was $ 19,612,55
million.
In
short, the main causes for the decrease in net profit for the 2020
period were: lower revenue from ordinary activities as a result of
the change introduced by Res. 31/2020 and lower income from
exchange difference net and clients’ interest generated
mainly from CVO credits. These results were partially offset by
higher revenues from ordinary activities in the segment of electric
power generation from renewable sources and a higher income from
the change in monetary position.
Net
profit for the 2020 period was $ 4,58 per share compared to a net
profit of $ 7.97 per share in 2019.
DESTINATION
OF THE INCOME FOR THE PERIOD
Net
profit for the 2020 period amounts to ARS 6,891,921 billion. The
Board of Directors proposes to aim 344,596 to the statutory
reserve. In addition, it proposes to aim the remaining balance of
the income for the period to increasing the voluntary reserve by
6,547,325 billion, which may be aimed at: a) investment projects
already undertaken and/or b) future investments by the Company
and/or its Subsidiaries related to new projects as the acquisition
of assets approved by the Board of Directors and/or c) payment of
dividends based on the evolution of the financial condition of the
Company and the provisions of the Company’s Dividends
Distribution Policy in force.
FINANCIAL
MANAGEMENT
During
next period, we will continue on making investments for the
preservation of the Company’s assets and to mitigate the
risks of variation in the exchange rate of foreign currency and the
interest rate, taking into consideration the liquidity necessity of
CPSA and the compliance with its commercial and financial
obligations.
The
main instruments in which it will invest will be public debt
(sovereign and/or provincial), private debt securities and
companies’ shares, fixed term deposits and investment funds
registered in prestigious and robust financial
institutions.
2021
OUTLOOK
In the
future, the Company will continue on focusing on the expansion of
its generation capacity regarding both conventional and renewable
energy.
In this
regard, during 2020, we accomplished the commissioning of Manque
wind farm, located in the province of Córdoba, with a total
installed power of 57 MW in March 2020, and in February 2020, the
commissioning of Los Olivos wind farm, also located in
Córdoba, with an installed power of 22.8 MW. In addition, the
construction of the wind farm La Genoveva I was completed, with an
installed power of 88.2 MW, located in the province of Buenos
Aires.
Regarding
conventional energy, we will continue with the construction of the
cogeneration unit Terminal 6 San Lorenzo with a power of 330 MW and
a steam production capacity of 350 Ton/h, located in the
agro-industrial complex of Terminal 6, in the province of Santa Fe.
Said station was authorized for its open-cycle operation on
December 2020. It is expected that Terminal 6 San Lorenzo will
begin its combined-cycle operations by the end of the first
semester of 2021, with power generation and during the second
semester of 2021 with steam production.
To
summarize, the Company has incorporated 130 MW of renewable
projects to its installed capacity during 2020, and expects to
incorporate 330 MW of conventional projects in 2021, positioning
itself as one of the leader companies in the electric
industry.
OSVALDO RECA| Chairman
Buenos Aires, March 15, 2021