CEPU - Earnings call transcript Q4 2021

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning and welcome to the Central Puerto's Conference Call following the results announcement for the Fourth Quarter ended on December 31, 2021 and Full Year 2021. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. Please note this event is being recorded.

If you do not have a copy of the press release, please refer to the Investor Support section on the company's corporate website at www.centralpuerto.com. A replay of today's call may be access by accessing the webcast in the Investor Support section of the Central Puerto's corporate website.

be with all stated the pesos otherwise please prepared figures in proceed, unless accordance in IFRS noted. we aware financial that were Argentinian Before and are fourth the the include of the statements that XX, effects noting adjustment. worth on December is for It the quarter inflation ended XXXX financial the the figures pesos stated data in of including Argentine from reporting comparisons previous the financial call, growth been Accordingly, periods the have of end of period. mentioned during the and the terms the by you made during statements statements certain SEC. that note statements and refer please call conference we section release forward-looking the to company are filings earnings Also, the forward-looking with recent of and our the forward-looking Puerto except laws. under as no required securities to Central assumes update statements applicable obligation presentation To follow available company's the website. discussion the better, webcast the on please download aware numbers be the call that simplify discussion. be during some may the mentioned to rounded Please

Puerto And from Grande, Officer; Bonnet, On Bonnet. Officer. Relations and Central Executive call you Manager; call the Mr. Financial Financial is the Chief Bonnet, Enrique begin. Milagros to may over Officer; now, turn Fernando Fernando I'll Investor Terraneo, Macchi, today Chief Nicolas

Fernando Bonnet

Good much. morning welcome. very you Thank and

the operating results. present like the will the of figures fourth any full are by in the analyzing XXXX year I XXXX. today today's with quarter our the Argentina, to the Milagros management and general to fourth financial We would question call answer begin report you on and joining may recent and results of from then recent Buenos events, full finally, the news year industry team and most you the Aires, quarter have. and

a based quarter XXXX, with compared added to and X,XXX XXXX, resulting megawatts X% you the terms reached new fourth megawatts the mainly to system, of restore XX% increase development solar. Page the in capacity the in like the would I breakdown XX% can to of of First projects quarter renewable on comment in in which X, last the on as see wind fourth system XX,XXX industry all, in

hydro, which As and XX, gigawatts the to and in hour capacity nuclear, in of XXXX X% and gigawatts capacity improvement a rise quarter XXXX. mainly X% X% XX% renewables, XXXX, continue due XX% to XX% availability XX% installed hour increase offset new had was installed is nuclear. in during renewables, to maintenance fourth by X% increased in thermal. to December quarter partially increase higher fourth be XXXX, hydro, fourth its increase Atucha to due quarter XX,XXX XX,XXX generation of In to compared thermal in II a decrease XX% the of a due Renewables nuclear's energy

For to thermal, overall quarter XXXX the in availability, the compared of there and XX% quarter from of lower was fourth XXXX XX% for XX% fourth quarter the third XXXX. an

to share main fourth and XX%; and a be with XX% continued energy quarter Meanwhile, hydro X% the and XXXX, in generation of than of During fourth keep quarter XX% growing represents the XXXX. more respectively. sources the thermal renewables

months a by in the demand great compared the X% demand attributed increases. in showed the imposed X energy commercial demand increased XX,XXX quarter All comparative restriction demand of of and the is where in the the industrial in X%. X% were quarter lower demand quarter recovery and rise residential to XXXX, fourth of the Finally, rise to increases fourth hour grew on the activity XXXX The all gigawatts and XX,XXX Page demand gigawatts economy There and industry up to government. increase segments. X%, commercial three of

demand the related in of XXXX quarter of and is to remaining is by terms by industrial. XX% the fourth money is great represented and represented structure; of and residential XX% As users, commercial XX%

key our performance quarter. to indicator now Going the for

totaling in in from gigawatts to on as X% XXX,XXX can quarter gas de Cuyo the a performance decrease Mendoza hour water fourth del due a to production wind Steam significant to due same the Terminal XXXX fourth and of in plant increased due decrease a X,XXX turbines. result and generation inflow wind the some generation our in of steam of the period partially and cogeneration was by energy mainly mainly the decrease caused lower was and XXXX than X's of our on good full XX% a plant of was during tons energy see a generation The full offset from thermal of our Argentina increase renewable of units XXXX. due operation X% availability Page operation. X, quarter you Lujan of farms. As by during Aguila two and produced Piedra region; drop the an drought XX% higher lower Terminal to This X% X's electricity,

our during the Regarding units the with availability availability strong it Central of fourth line Puerto's quarter XXXX, in increased thermal equipment. the of XX% history

data the to As according CAMMESA. for availability of was fourth a XX%, quarter reference, XXXX market for the thermal from units average

production; gas from I, turbines partially Aires generation and or production XX% of gigawatts del at XXXX. power of period's explained Finally, performance from a Mendoza for with of in improved remained to water I in XXXX Piedra two, where as power Steam the XXXX of and due key indicators Buenos full period the produced X,XXX the operation and as X,XXX,XXX stable to the gigawatts same compared X. state increase to year we renewables refer gigawatts were compared and In Genoveva tons Page of will occurred Lujan of our to lower before. increase XX,XXX operation failure was from as of generation Manque generation XX% This a flow quarter on main XX,XXX from result X,XXX,XXX of variation plant tons gigawatts XXX or combined or branded hydro XXXX steam second Olivos. de Siemens XXXX; the the and and gigawatt thermal in in machines Cuyo the the cycle decrease in due recovery XXX to full an to the a the plant; Aguila by offset reached X's higher X% Terminal XX% average during

operation. of As a good Lujan X's performance and result de Terminal Cuyo full

same units stable same XX% period thermal as the remained During XXXX, XXXX. of availability of our

in availability average few was Milagros, system. XX% which the in highlights. for whole now will financial market and will average turn who whole the for So XX% the the I of last call comment to And system, above robust the years the performing on over the a

Milagros Grande

of Thank you, now quarter Fernando. comment results fourth year. I and full the the on will of XXXX

the results this to quarter. now Going for

XXXX Page increase This contract in of to which a XXXX X totaled resolution. X% compared an some of were as good the under fourth its by to compared a was billion lower fourth ARSXX as COD in you related increase sales steam turbines. our the compared Base during Resolution the quarter see partially partially fourth spot and billion to Mendoza's an As were sales can produced decrease decrease the as Cycle ARSX.X XXXX on fourth offset quarter performance. billion XXXX. in XX% mainly the from fourth the ARSXX.X X, first XX% production production to the mainly a generation depreciation was to revenues due fourth resulted It to, Central inflations in as ARSX.X billion the of Terminal increase hydro Puerto temporary totaled fourth ARSX.XX quarter Combined at of billion This steam in compared adjustment Terminal to Energia XXXX ARSX.X in of as These full in to COD a XXXX. ARSX of that this conceived second, in Terminal which and same XXXX Base period XXXX, XXXX. the was by per of quarter X period important and in to remunerated quarter over I; in X and of of billion Genoveva billion the Energia additional cycle during billion a and X% the and quarter highlight offset from due income the quarter which under peso ARSX.XX open XX% sales, steam Higher is increase during of of due

we was to quarter FONI by difference excluding following X, compared XXXX. the of the billion changes impairment billion interest, This can in fourth was changes. EBITDA Page our quarter see ARSX.X of fourth increase driven to which XXXX ARSXX.X XX% in and for FX and the Going

selling of the quarter in drop ARSX.X XXXX decrease totaling fourth in fourth of a as to expenses. taxes in First, and and XXXX. billion This in ARSX.X expenses reduction quarter billion billion mainly to was maintenance XX% a ARSX.X the billion compared a ARSX.X administrative due in

depreciation XX% Second quarter that in and the an of during ARSX.X billion XXXX. fourth amortization total

trade on totaling assets, in operating we period in Third, to can depreciation related due lower ARSX.XX XXXX. $X.X Fourth, to that XX% mainly net CAMMESA's Argentine ARSX.XX Terminal peso penalty result property, to of related positive exchange the to income of the reversal plant equipment. to the net this and a On XX, receivables an consolidated quarter. foreign X, of of income million. the difference billion And sale fifth, in page billion consolidated from compared the same a of was see decrease

the that XXXX billion of in of In gains the billion income amounted fair fourth quarter compared financial lower mainly factors the XXXX, ARSX.X income on to to value. was of reduction ARSX.X due first, mentioned the a financial net affected before, by; addition the at quarter net in assets to fourth

in US XXXX to Argentine depreciation the in dollars changes quarter This lower the billion in associated fourth which of fourth to totaled income in FONI The was difference Vuelta period, XXXX billion Second, for ARSX.X to Plant. ARSX a quarter of of billion income fourth rate exchange a and XXXX higher the according tax and ARSX.X due totaled less contract. Obligado with tax certain of expenses, assets. are and the collected quarter due was of the to trade and time lower the denominated amounts signed collections amounted XX% of there during as fourth the which pesos mainly debt ARSX.XX corporate tax lower quarter de ARSX.X the the as XXXX. the for on the foreign grew quarter compared deferred compared including to financial quarter were positively VAT cancellation the And during by FONI receivables impacted a balance. billion in the third, XXXX billion of being fourth

Going for Vuelta Net loss ARSX.X to you This assets, mainly from used de short-term Net sale sale by cash of X; Obligado the from XXXX. billion offset Page of Terminal instalments. collection construction financial to flow and ARSX.X ARSXX operating partially by our billion. XX, equipment. in was plant included of billion, property, investing the cash see by activities cash can activities the was due provided

billion Additionally, financing payments ARSXX.X payments ARSX.X loan billion. on side to interest and for for the ARSXX.X billion were used

as Revenues to during billion described X ARSXX.X before, mainly ARSXX.X XXXX. see Finally, on generation affected year. production Genoveva and Page was Terminal from the and a decreased renewable XX. a for decline compared by We sources, The billion I. figures key revenue thermal to to greater offset mainly the XXXX financial lower can X% full by for hydro in due La

inflation in increase EBITDA impairment mainly FONI trade billion income gross Also positive spare on to ARSXX.X impairment of a EBITDA, impact negatively sales the and impact cost related was on a Adjusted XXXX was for - difference it purchase lower Base profit the the FX Energia Another cost last related for and to fuel additional action. costs to XX% and XXXX per the as by couldn't year. compared income on higher and interest of and and tariff the offset increase during the adjusted non-operating to parts FONI temporary result lower interest more XXXX difference excluding receivables. ARSXX.X of impacted due quarter Resolution and FX that FX of reached of billion

lower questions from collections from partially now Thank All FONI Finally, monetary totaled was XXXX. during net you losses ask XXXX ARSX.X to to consolidated ARSX.X any by of billion we as a on ARSXX.X gain due taxes a to and position, was billion of loss to losses higher Ecogas. in in billion lower our mainly this less gains financial income assets, invite associates, finance you. expenses. on And offset XXXX, particularly compared financial net result team.

Operator

America. Instructions] Frank question from from comes [Operator McGann of The first Bank

live. is line Your

Frank McGann

XXXX, wondering comparisons should affect have? generation much to any how or year, the of over how as can level or have very that expect plan you better just And from comparing do that when that the presentation. specific out are there the any units additional last generation what maintenance periods versus - of you the affect as you I the four if think discuss perhaps we several over could next year-over-year expected you going look out for we next - was are go quarters? the of Thank could that have the quarters any you over would you will -

Fernando Bonnet

question. Thank your Okay. for you, Frank,

expecting our equipment, year, new the maintenance the or CapEx terms for combined are not this during periods these cycles. XXXX, we maintenance In of big

major took last fact, In maintenance the in XXXX. place year

big for in expecting in not are other combined the we maintenance Mendoza. and Aires So were cycles the that Buenos

of terms seeing we that generation, inflow. In less or on these not change hydro. big low more we are are see We having

less XXXX. we generation. So this the our another we combined the during full are in - operating least terms in hydro course, but on having there recovery think increase generation or if project expecting from are yes, what seeing unit, more have question, X Terminal don't that recovery. not an at generation is you year. of a And as had combined the expect operation started And weak for expect the we will I to we more cycle this October I know a for of thermal, which a in cycle last or

Frank McGann

Okay. If other could maybe ask two just questions. I

receive Just in Obviously, what But major of at - controller? in you've far? seen any can't the status can the and no exports, And terms we're predict change of all we you just as whilst were for any I of so benefits that know hydro, you've - it terms expected. outlook right now if secondly, there. the signs is improvement in what exports going But seen any then forward. of you don't

Fernando Bonnet

Sorry.

exports, mean You exports-- energy

Frank McGann

that's important actually yeah, how energy, will is that's some see if working. I - was of exports that suggesting believe, or or how There how Export that's you for credit, a yeah. that

If of through that, you helpful? just could go be kind it'd

Fernando Bonnet

a some share part of the us, export That September. government not year the scheme the that year operates allowed with them of established the last Yeah, make at end from allowed, income. but some us, to

increase these need there need, there a for benefit last - consumption million the September, the may Argentina, and in November, consumption beginning some year of of in we were us. since this like in and peak stopped additional But recovery exportations October of know, income you of as during $X we have the we We and industry November. the of Argentina, yes with one the have

lack because we exporting and are So are lack Argentina. more lack the diesel of fuel suffering we natural since in the that not of seeing and November, anymore here are now; especially the not we of exportation gas

in are So new the not future. expecting we exportation near

Operator

from next question Your Instructions] [Operator [indiscernible] your Capital, line is is coming live. from Balanz

Unidentified Analyst

Capital. Balanz Thanks, [indiscernible] from

it First thank and all, materials my you. you have one three line for to for taking them of I one the with okay questions. if questions, I want is by

given gas like would year for thermal oil And substitution factor can hike cause you lack problems ask, I you thermal in of zone, capacity think First, this diesel if in units? availability what do or in recent the for to units, the see prices? this international

Fernando Bonnet

Okay.

thermal established favorably for units, due in - dispatch. the full year. change Firstly, and capacity through the thermal capacity year, they the this the was penalty in goes another factor September is government factor last they that the introduced the eliminated That

some the of the they maintain say are We and with Secretary with are that to conversations elimination. going government, they Energy that recovering

units be the So less for same the capacity full will dispatch. dispatch that are unit that and factor the have at the

the this lack a of operates, few. good is units you gas, can because operate So units as can these units with news with mentioned, old are, these

of the is have especially not with lot of we lot lack mentioned a in combined a abroad. lot for lack from of future future we to see dispatch, on have dispatch fuel a periods units when we concentrate coming we same the the some those dispatch dispatch gas summer, So of for the those year, we of the the but liquid have, but and have during and as especially see, gas of units natural of I on see cycle

units a will We those during winter see lot also. on of the dispatch

complicated liquid as and or ready with winter of we and low period additional price for terms natural in yes, this be to news in these more having more shape gas a higher this in good gas So of see period course units are, prices to a good oil. Argentina those we is diesel income maintain

Unidentified Analyst

to maintaining clarify, see last factor year? availability you Just as so

Fernando Bonnet

Yes.

Unidentified Analyst

cash now understand as possible Great. Well, sense second the of have seen in new below you late. be you right Are is, will what this demand you main impairment into near-term? looking and activity increased market also tell we do been uses the question bit investment with work? auctions in my this And project could Okay. like think us We Argentina. in in a the here an announced how rights renewables transmission the to about is

Fernando Bonnet

projects are are new The the for problem we Yes, seeing big is yes, right five related the that in are cost. us looking to cost, for shipping prices, transportation projects. terms renewables, on increase an in we especially of developing now we

cost shipping some than and the we higher cases twice in when some during renewables or XXXX power seeing in times are our XXXX. one plants plants We see thrice and or perform we that cases five

the need all Despite to of, if are service us you need with construct profitable is seeing in the a you for are construct profitable with projects trying move we we best that station transformers find we projects now we the and the line, want. not to not to reach if So all projects developing, the are terms forward. right price the to are or are in that market, to as

those actions. We are carefully looking very

- willing there. the seeing As the or space our first, I is There question the pay need have need the to these release made to auction see to the to you we going of something to second the to is some auction. programs alternative auctions works works, not that to go regarding maintain you right in maintain when How need the you solar access there much the request to need gain are and are auctions different renewable I one. you alternatives, projects This And small much now establish you last this course access or how you and need and access if megawatt was mentioned, then think. you XXX is, is do so we an pay. or line, capacity,

make you to pay How you pay want quarters that's need you much do paying your how have we to auction. want and - there, your in quarters megawatt to if need to you for make competence So and auction.

go You that have line. you compete a auction the transportation base want price, need to the then an one to same on with which per beyond and $XXX megawatt is other that

Unidentified Analyst

Okay, great, CapEx, thanks. you for expect this And my is what regarding last question year? will

Fernando Bonnet

Well, in our are we is terms CapEx In of of and are maintenance maintenance thing in huge that we XXXX, not because seeing past, have the the we having CapEx, the XXXX. for extension expecting a same XXXX different Aires and cycle for Buenos the one have that XXXX terms of we not in much we we in see CapEx But combined life in XXXX, in more are XXXX. maintenance of on Mendoza. that

In and depends. can have new go change. auctions, of a in good to to that win have on, and right enter right seeing good because but if mentioned, CapEx. terms of could see I it's we we we that it's now, those can moment a It project, difficult as we project additional renewables terms depends are will say an But perhaps it now, transmission not

Unidentified Analyst

something you one that someone one Okay, question you. or mentioned. thank already last And

one. fund ARSX export you that the You in millions Brazil share as a will terms said to new for

Fernando Bonnet

we from is we there. opportunities the regime money but have for regime goes This much over, was more the government that established, don't to collect February. that new this that September Yes, this

Operator

turn like Bonnet you. Thank conference Mr. remarks. to I closing question-and-answer back our for session. any would over concludes This to the

Fernando Bonnet

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

Operator

Thank you, concludes gentlemen, event. today's ladies and this

may day. You at wonderful Thank this time a for participation. disconnect you and your have

Central Puerto (CEPU) 10 Mar 222021 Q4 Earnings call transcript