CEPU - Earnings call transcript Q1 2022

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

Operator

Good morning and welcome to the Central Puerto Conference Call following the Results Announcement for the First Quarter Ended on March 31st 2022. All participants will be in a listen-only mode. [Operator Instructions] 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 accessed by accessing the webcast in the Investor Support section of the Central Puerto 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 quarter financial effects the the inflation for the XXXX of that noting March XXst, worth the It's first ended adjustments. on include statements the the pesos comparisons, the stated have Accordingly, including in figures reporting at periods previous terms during mentioned from financial Argentine the been of end and period. call, of the data the growth 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 law. 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 of call mentioned during that rounded simplify be numbers some the the to the discussion. be may Please

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

Fernando Bonnet

welcome. Thank Good much. morning you and very

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

adjustment our capacity updates Regulatory turbines by Remuneration with increase XX, on for Energia dispatch, a will Energy with dispatch. June the of energy the like news In this change On capacity reduced to the also resolution XXXX would resolution remuneration eliminates April XX% Framework. improving in Base and XX% XXXX. steam for issued approximately comment February use lower under to capacity additional calculation payments. the regulatory their in of effective increased latest prices units in units I values The implies retroactively that an First, become factor XXX/XXXX which the the Secretary an and payment low XX% industry.

Now, I comment you metrics on as page can see the main like of industry to four. the on would

system of its XXXX, in increase renewable XX,XXX own megawatts terms quarter In to capacity, of resulting new the XXXX, in first based the reached a quarter mainly the project first compared X.X% a developed. in

was As increased of continued a compared due nuclear. renewables of hydro, increase March partially in thermal and XXXX, the and to rise X% XX% quarter generation XX% installed increase of XX% gigawatts to XX% capacity X% XX, to in by thermal, hour of due mainly nuclear, XX,XXX hydro. on and XXXX, Atucha capacity and energy gigawatts Renewables to decrease quarter new first to X% in II a installed a is first nuclear the offset I XXXX, XX% due XX% Atucha XX,XXX hour the renewables in increase be In higher to availability.

compared as availability, was overall quarter first XXXX. XXXX of the for there units, thermal lower XX% to the For quarter an in XX% first

XXXX, was renewables and while the generation represented respectively, thermal energy XX.X% share XX.X% main During quarter of with and a first to sources nuclear XX% hydro continue and be of X.X%.

XX,XXX lower in economy of level activity to Finally, Where of segments XX,XXX gigawatts to XXXX. the X% and restrictions. five, first user X%, the the users you quarter grew hour of different residential Rises at grew the recovery industry XXXX. quarter keeps COVID-related in grew quarter X.X% first related the page XXXX and gigawatts as demand see in same were up of first can rate increased demand commercial the energy on X%, hour to compared

commercial is remaining activity XX% first industrial of of XX% related quarter and commercial XX% is structure demand. by demand and grade by the users, XXXX, As represented to residential

our indicator performance the Going now for quarter. key to

del thermal in the increase full same a XXXX Power mainly Puerto specifically generation Terminal dispatch higher can The XX% energy page of first produced of cycle good Águila of quarter low water performance five, increase to tonnes by higher of plan. due dispatch XXXX than totaling the to de of Luján increased production Plant period As and was caused CAMMESA's XX%, on Plant energy sources, the by generation X San Lorenzo of XXXX. X,XXX level. demand, decision see the in increase full was higher reducing quarter offset X of to for Power de Cuyo due [indiscernible] Luján you Steam Terminal Cuyo inflows increase during electricity, XXX,XXX Lorenzo combined availability first as gigawatts San regardless due during and XX% partially hour Central generation operation the turbines XX% to steam Piedra and operational generation a dam

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

according was As for over quarter the from call Milagros, will who financial to availability average now reference, on XXXX first a turn data CAMMESA. units the XX% the comment to the for And highlights. market thermal I will

Milagros Grande

Fernando. you, Thank

existing the the acquired financial that X, Lopez Brigadier I April First, information debt to power certain comment XXXX, cancelled. was plant, the key to the track. like would with on financial financial was under Trust, allotted together Financial related On

the As of LIBOR will reducing accrued April on as XXXX. to maturity final of policy the I comment this the annual results The August December Trust equal scheduled an million. XXXX third under was rate XXXX, this of X% now interest or cancelled of of This debt quarter greater indebtedness at were X.XX%. management, amounts the plus financial US$XX financial costs. due was but liability in a

finally XXXX, X, first inflation X% million because XX% as X% the Energia in in first XXXX increase lower as can ARSXX.X million of ARSXX.X XXX our an in due to an ARSX.X Lorenzo increase results mainly quarter as which to first Going the is million XXX hour X totaled which quarter Power as and the ARSX.X million to now of to reached XX% same first ARSX.X gigawatts Page the X.X% the sales Steam sales, in under increase of XX.X% plant, a to the that full ARSX totaled in months. of the in of of in which revenues for ARSX This which compared increase rise there a a representing under the as totaled new in quarter was were to San increase quarter gigawatts million first generation compared mainly first Also generation the period XX% Sales, increase increase hour production in XXXX. million XX the compared you to XX% contracts, was from of due million XXXX. of in XXXX, see in compared ARSX.X during on XXXX in XXXX. of – quarter XXXX, than XX quarter represented this of tariffs a last Terminal quarter of of in And resolution compared to the a million which

first to the to first of XXXX. XXXX, X% compared XXXX expenses now and billion quarter quarter to income of mainly due excluding billion purchasing ARSX.X EBITDA [indiscernible]. expenses Page the power and to to quarter ARSX.X a to in totaled in the quarter change ARSXX.X of ARSX.X to as the ARSX.X compared million the by being results totaled positively Negatively quarter quarter XX% our that in XXXX. the of of selling quarter Plant of costs. ARSX.X of ARSXX.X compared interest On ARSX.X to corresponding before, amounted Obligado administrative financial This first tax billion decrease as first quarter the higher to to ARSX XX% mainly income de totaled as that can XXXX. finally according to quarter which the first first cost and XXXX. in XXXX ARSXX.X billion in X, difference ARSX.XX interest, A in income to the of the was indebtedness ARSX.X ARSX.X in totaled [indiscernible] of changes XXXX first currency of contract. for A quarter quarter from of during compared billion first time the XXXX collected Moving first X% net XXXX the of can decrease yield. the see which the income factor the to first XXXX in XXXX in XXXX the compared was to in reduction on consolidated Vuelta due in of in of the in in billion grew that compared quarter in billion due insurance compared operational signed the the billion billion period X, driven related that quarter was compared FX X billion operating compared XXXX, period to ARSX.X was lower the to ARSX of during addition in related are Page exposure ARSX.X first billion amounts the billion Collection the by loss of billion by increase a of XXXX. mainly we by ARSX.X to less other ARS quarter totaled excluding first following And net a billion The in see a the billion affected impairment first million the to of consolidated recoverable billion net the we first same changes; in increase XX% mentioned sales a to in revenue of

acquisition cash we're of of activities cash mainly Vuelta including instalments. provided in ARS see you page collection to And now quarter used answer activities you billion going X any billion investing our de the billion. assets. Moving for was can financial Obligado ARSX.X questions Net to from by XXXX. due ARSX cash by Net XX, first short-term operating may Thank you. flow This have. to was

Operator

line from question is live. is Capital. from your [Operator Instructions] The Martín Balanz Martin, Arancet coming first

Martín Arancet

Thanks. Martín here Capital. Arancet from Balanz

like a thermal by is, questions revenue one. dispatch. probably them congratulations First of the to results. one great in saw quarter question all, would to My first have I terms run of four site due on I we

on will production will as expect if well section although that please? comment quarter-over-quarter flat with risen can We equation, this the have you was OpEx OpEx have

Fernando Bonnet

your you, for Thank Martín Okay. question.

a Comahue Regarding our we of in the – draw have the units area. dispatch we are thermal seeing

than seeing are dispatch much steam we past hydros, the turbines of the more our in For years.

– the necessity more because we AMBA somehow seeing of more not much cost [ph] that of because the we are they – – are and using the steam turbines our of in effect. gas seeing the region additionally dispatch necessity are are have fuel in we that are terms lack better because in are a region we So they

in or hydro coming X, testing talking available -- less that in that the same our especially. the that see We see maintained in less on can natural and the the Santa we significantly. depending since we increase, other So the OpEx, see depending thing but thing see nothing turbine perhaps gas turbines. gas dispatch little maintain quantity. Fe significantly steam natural more of is nothing is but the more additionally, we seeing X OpEx. from And If draw region, important especially, Comahue number more bit would think perhaps about and on the units number the the the LNG draw will in the the We other turbines. but some a I And receive start perhaps we Comahue, – dispatch, Escobar will steam is -- gas –

the On extension, cycle one XXXX. for we hand, year, the we face need will the not combined not to next but will and lifetime other XXXX but for XXXX face this the the

Martín Arancet

is issues still January. my in [indiscernible] plant extra Well, on affecting this as Right. second seeing resolved thermal Okay. situation Are fixes? about certain are you the fully there were question or you working viability

Fernando Bonnet

in in plant one. a yes, Cuyo online No. we maintenance This new de Lujan an in you as – Lujan de extraordinary XXXX. It's have was Cuyo. entered mentioned our cogeneration

expect that So we failure. didn't

are happened are with the normal That -- already with liking in it's about we the gearbox. what but January, solved gearbox, in was resolved. a We doing the not specifically This the the what failure analysis was manufacturer happened with failure. the that but

gearbox the replaced. So was

not we So we are failure expecting new we there. was have what that. are a additional one, any the analyzing cost but of But

Martín Arancet

question Right. My Thanks. [indiscernible]. Okay. third regarding is

to to getting it the and or rate. to after should it are according up months up on this the or be maturity scale core relations extended We base the to reduction concessions, XX Will XXXX? site near next be

Fernando Bonnet

you Well we to mentioned that's have we an contractually -- --as extend. don't option

concession. is national a the government one the government, us it's with negotiation So need to that give that we have the with the government is the

contract the us set to cloud specifically doesn't So extend a automatically. that allowed

need to we them. So discuss with

but problems in the all of you government the discussion that December. can a election the imagine course, little is of of the The a after the Águila administration entering of del apart. as even led the the and change end in bit because federal concession XXth case specifically are XXXX after We election of and after discussion the it's Piedra

don't I So know.

in are with but -- concession. this new advances have a talking terms any We government we and didn't of

any We terms in technical need like we but concession, are of a additionally terms things in period. we do what to advance concession of not what CapEx the if need talking extend specifically having we to new do,

Martín Arancet

Okay.

[indiscernible] -- expansions you So -- [indiscernible] it last next capacity any sorry. initiatives? would my and be left material question updates to any Do on have

Fernando Bonnet

Yes. Yes.

issue control, is already big the in the cycle. the Brigadier yes, something is really combined We López seems but past. are if I We're we're don't analyzing -- it's of issue closing the a know it's COVID like not that analyzing, that

We with already and seeing, because go EPC are the of unit. because in start operate we information need early much the to more we stages we back have constructors course,

So past. have much in information the we than more

do to in we know analyzing in go it's working you and to the have which the CapEx because at and itself as to need we we that back constructor time So already everything that CapEx. process -- about again the almost terms of EPC start need

civil possibility. need there. works yes, that more put to we much labor it's So and standardizing we again are the But

nothing one. this be next but Of would course, we see don't year,

Martín Arancet

tackle quarters next maybe? you in be the it So something that could

Fernando Bonnet

you repeat? can Sorry,

Martín Arancet

could It next you something quarters? tackle be the in that

Fernando Bonnet

early Yes, stages very now. yes. in we right But are

Martín Arancet

Okay. Great. Thank you for much. very Thanks update. much your

Operator

& Thank is line come have John, Barnett you. [Operator another in Barnett did Instructions] And your we question live. Associates. from from John

John Barnett

holding expenditures? plan I for deferred capital was any commentary your expenditure you. on, there Thank any can requirements. sort you you there's that if been expansion you. and some expenditures guys And capital wondering forward-looking if off is regarding guys capital provide have of Thank

Fernando Bonnet

for you Thank your question. Okay.

We in combined the of are terms we units, contract the separate of CapEx cycles, in we manufacturer you which factor many the regular terms expand of hours with our that to the -- maintenance CapEx or we a how need have with CapEx operate.

have don't any stay to So so. there we CapEx

of which combined As I cycle in of the cycle of we mentioned are we to Mendoza. lifestyle XXXX not is postponing are in need combined -- combined Aires previously and extraordinary cycle XXXX -- year CapEx we combined the any an extension But terms CapEx, do this of, the Buenos cycles.

are turbines, years In you units terms as have -- XX may of that know the steam than are old. more these

unit, all So need something about the today. course, amounts But operate by keep of you we if that that the not them are are to in of performing extend different operation. the CapEx we talk completely lifetime want covered and to to regulation

the keep inter will don't So know keep XX operating units in them operation five things this we to banks, can the terms I assume or of, operate the years. day-by-day are in good we operation, but in that doing for,

the -- do standardizing to this expansion, to terms different we need close we about the a government have opening that is want Lopez, which closing are, combined of we to turbine in you to there. Brigadier want steam want cycle, remuneration. do that, of again already talk we one And I and as have so we in cycle If mentioned

as I additional there. for not analyzing we from projects talking to $XXX we works. the Apart is related quotation the million, quotation, about are are constructors is are any not that this civil of we mentioned CapEx EPC but concrete new renewable that, main the is from That this the we project around the that the -- So installation having having the but and previously. year, not are

one. for We but have this concrete quarter or the only development, nothing next

Operator

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

Fernando Bonnet

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

Operator

conference you today's The for concluded. Thank now attending, presentation. has

disconnect. You may now

Central Puerto (CEPU) 17 May 222022 Q1 Earnings call transcript