Central Puerto S.A (“Central Puerto” or the “Company”) (NYSE:
CEPU), the largest private sector power generation company in
Argentina, as measured by generated power, reports its consolidated
financial results for the quarter and six-months period ended on
June 30, 2019 (“Second Quarter” or “2Q2019”, and “First Half” or
“1H2019”, respectively).
A conference call to discuss the results of the Second Quarter
2019 will be held on August 13, 2019 at 13:00 Eastern Time (see
details below). All information provided is presented on a
consolidated basis, unless otherwise stated.
Financial statements as of and for the quarter and six-month
period ended on June 30, 2019 include the effects of the inflation
adjustment, applying IAS 29. Accordingly, the financial statements
have been stated in terms of the measuring unit current at the end
of the reporting period, including the corresponding financial
figures for previous periods informed for comparative purposes.
Growth comparisons refer to the same period of the prior year,
measured in the current unit at the end of the period, unless
otherwise stated. Consequently, the information included in the
Financial Statements for the quarter and the six months period
ended on June 30, 2018, are not comparable to the Financial
Statements previously published by the company.
Definitions and terms used herein are provided in the Glossary
at the end of this document. This release does not contain all the
Company’s financial information. As a result, investors should read
this release in conjunction with Central Puerto’s consolidated
financial statements as of and for the quarter and six months
period ended on June 30, 2019 and the notes thereto, which will be
available on the Company’s website.
A. Highlights
2Q2019 energy generation increased 4% to 3,256 GWh, as
compared to 3,145 GWh during the same period of 2018 (see section
C. Main Operating Metrics), mainly due to a 16% increase in thermal
generation, and the energy generation from wind farms Achiras and
La Castellana which started operation during the 3Q2018, partially
offset by a 36% decrease in energy generation from hydro units.
Consolidated Net income and Net income for shareholders of
Central Puerto, were Ps. 1.35 billion and Ps. 1.16 billion
respectively (see section D. Financial).
“During the last months, we had important
advances in our expansion projects. We purchased the Brigadier
López Plant adding 280 MW to our current installed capacity.
On the renewable energy side, we also had good
news, with the start of operations of our first MATER project, La
Castellana II, which will allow us to serve our customers
directly”
Jorge Rauber, CEO Central Puerto
Purchase of the Brigadier López Power Plant. On June 14,
2019, Central Puerto and IEASA (Integración Energética Argentina
S.A., a state-owned company) signed the transfer of the Brigadier
López plant. Currently, the plant has an installed capacity of 280
MW (Siemens technology gas turbine).
According to the transfer contract, the legal, economic, and
other effects, were considered as of April 1, 2019. However,
applying IFRS 3, for accounting purposes, the results associated to
the Brigadier López plant have been included on Central Puerto’s
Income Statements starting on June 2019. Additionally, as a result
of the application of said method, the Company considered the trade
receivables and accounts payables of April and May 2019 as part of
the fair value of the assets and liabilities acquired at the
acquisition date, included in the Consolidated Statement of
Financial Position.
The amount paid for this acquisition was US$ 165,432,500,
consisting of a cash amount of US$ 155,332,500, plus an amount of
USD 10,100,000 canceled through the transfer to IEASA of LVFVD.
In order to finance this transaction, the company entered into a
loan agreement for US$ 180 million, which were fully disbursed on
June 14, 2019. Under the terms of the contract, this loan accrues a
variable interest rate based on the LIBO rate plus a margin and is
redeemable quarterly in 5 equal and consecutive installments
starting 18 months after the signing of the loan contract.
Additionally, according to the terms of the agreement with
IEASA, Central Puerto assumed the trustor status, related to the
Trust Agreement. The balance of the financial debt as of June 14,
2019, was approximately US$ 154,662,725. In accordance with the
terms 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 greater, and shall be repaid in monthly installments.
As of June 30, 2019, there were 38 remaining installments.
Collections of the CVO trade receivables. During the
Company continued with the collection of the installments related
to the CVO trade receivables as scheduled. Additionally, during
June and July, Central Puerto collected Ps. 2,562 million and Ps.
825 million (including VAT) respectively, approximately equivalent
to US$ 57,2 million and US$ 19,8 million using the exchange rate of
the date of each collection, related to the installments
corresponding to the March-December 2018 of the CVO agreement.
Loan facility from KFW. On March 26, 2019 the Company
entered into a loan agreement with Kreditanstalt für Wiederaufbau
(“KfW”) for an amount of 56 million dollars to finance the Luján de
Cuyo project. Under this loan, the company received US$ 43.7
million in May 2019, and US$ 4.9 million on July, respectively.
Central Puerto expects to receive the remaining US$ 7.4 million
before the end of the 3Q2019. The Company expects that the project
will reach the COD in November 2019, as originally planned.
Renewable energy
Term Market form Renewable Energy (MATER). As of the date
of this release, Central Puerto has already signed long-term PPA
contracts with private customers for 79% of the estimated
energy generation capacity of the term market projects (considering
the median -Percentile 50%- of the expected energy production)
developed under Resolution No. 281-E/17 regulatory framework, which
are currently under construction.
La Castellana II loan facility agreement and
disbursement. On May 24, 2019 CPR Energy Solutions S.A.U., a
subsidiary of the Company, entered into a loan agreement with Banco
de Galicia y Buenos Aires S.A. for US$ 12,5 million for the project
La Castellana II. The company received the full disbursement during
May 2019. According to the terms, this loan accrues a fixed
interest rate equal to 8.5% during the first year and shall be
repaid in 25 quarterly installments starting on May 24, 2020.
La Genoveva I loan facility agreement. On June 21, 2019
Vientos La Genoveva S.A.U., a subsidiary of the Company, entered
into a loan agreement with International Finance Corporation for
US$ 76.1 million for the project La Genoveva I. The company expects
to receive the first disbursement during the 3Q2019. According to
the terms, this loan accrues an interest rate equal to LIBO plus
6.50% interest rate and shall be repaid in 55 quarterly
installments starting on November 15, 2020. The Company expects
that the project will reach the COD during the 2Q2020.
B. Recent news
Renewable energy
La Castellana II reaches commercial operation date (COD).
On July 16, 2019, the wind farm La Castellana II (14.4 MW) started
its commercial operations. This wind farm sells energy directly to
large users under the MATER regulatory framework.
La Genoveva II loan facility agreement and disbursement.
On July 23, 2019 Vientos La Genoveva II S.A.U., a subsidiary of the
Company, entered into a loan agreement with Banco de Galicia y
Buenos Aires for US$ 37.5 million for the project La Genoveva II.
The company received the disbursement in full during July 2019.
According to the terms of the agreement, this loan accrues a LIBO
plus 5.95% interest rate, and shall be repaid in 26 quarterly
installments, starting from the ninth calendar month counted from
the disbursement date. The Company expects that the project will
reach the COD during the 3Q2019.
C. Main operating metrics
The table below sets forth key operating metrics for 2Q2019,
compared to 1Q2019 and 2Q2018, and 1H2019, compared to 1H2018:
Key Metrics
2Q
2019
1Q
2019
2Q
2018
Var %
(2Q/2Q)
1H
2019
1H
2018
Var %
(1H/1H)
Continuing Operations
Energy Generation (GWh)
3,256
3,549
3,145
4%
6,806
5,839
17%
-Electric Energy Generation-Thermal*
2,444
2,547
2,109
16%
4,990
3,973
26%
-Electric Energy Generation – Hydro
665
846
1,035
(36%)
1,511
1,866
(19%)
-Electric Energy Generation – Wind
147
156
0
N/A
304
0
N/A
Installed capacity (MW; EoP1)
4,082
3,811
3,811
7%
4,082
3,810
7%
-Installed capacity -Thermal (MW)
2,493
2,222
2,222
12%
2,493
2,222
12%
-Installed capacity - Hydro (MW)
1,441
1,441
1,441
0%
1,441
1,441
0%
-Installed capacity - Wind (MW)
148
148
148
0%
148
147
N/A
Availability - Thermal2
92%
93%
79%
13 p.p.
92%
84%
8 p.p.
Steam production (thousand
Tons)
266
277
285
(7%)
543
560
(3%)
Source: CAMMESA; company data. * Includes generation from
Brigadier López starting on April 2019.
1 EoP refers to “End of Period”
2 Availability weighted average by power capacity. Off-time due
to scheduled maintenance agreed with CAMMESA is not included in the
ratio.
In the 2Q2019, energy generation increased 4% to 3,256 GWh,
compared to 3,145 GWh in the 2Q2018, mainly due to a 16% increase
in the thermal generation, which during the 2Q2018 was affected by
extension of the maintenance of the Puerto Combined Cycle, which
was partially offset by a 36% decrease in the generation of our
hydro plants, due to less waterflow in the Limay and Collón Curá
rivers. Additionally, during 3Q2018, La Castellana I (99 MW) and
Achiras I (48 MW) wind farms commenced their commercial operations.
During 2Q2019 these plants generated and sold, under the RenovAr
Program, a total of 147 GWh. As a reference, domestic energy
generation decreased 9.1% during the 2Q2019, compared to the
2Q2018, according to data from CAMMESA.
During 2Q2019, machine availability of thermal units reached
92%, compared to 79% in 2Q2018 (affected by the unscheduled
extension of the maintenance mentioned above), showing a sustained
level and well above the market average availability for thermal
units for the same period of 80%, according to data from
CAMMESA.
Finally, steam production showed a decrease of 7% totaling
266,000 tons produced during 2Q2019 compared to 285,000 tons during
the 2Q2018, due to lower demand by our client.
In the 1H2019, energy generation increased 17% to 6,806 GWh,
compared to 5,839 GWh in the 1H2018, mainly due to a 26% increase
in thermal generation, which during the 2Q2018 was affected by
extension of the maintenance of the Puerto Combined Cycle.
Additionally, during 3Q2018, La Castellana I (99 MW) and Achiras I
(48 MW) wind farms commenced their commercial operations. During
1H2019 these plants generated and sold, under the RenovAr Program,
a total of 304 GWh. The increase in the generation from thermal and
renewable sources was partially offset by a 19% decrease in the
generation of our hydro plant, due to less waterflow in the Limay
and Collón Curá rivers. As a reference, domestic energy generation
decreased 9% during the 1H2019, compared to the 1H2018, according
to data from CAMMESA.
During 1Q2019, machine availability of thermal units reached
92%, compared to 84% in 2Q2018 (affected by the unscheduled
extension of the maintenance mentioned above), showing a sustained
level, and well above the market average availability for thermal
units for the same period of 80%, according to data from
CAMMESA.
Finally, steam production decreased 3% totaling 560,000 tons
produced during 1HQ2019 compared to 543,000 tons during the 1H2018,
due to lower demand by our client.
D. Financials
Main financial magnitudes of continuing operations
Million Ps.
2Q
2019
1Q
2019
2Q
2018
Var %
(2Q/2Q)
1H
2019
1H
2018
Var %
(1H/1H)
Revenues
5,819
6,829
3,350
74%
12,648
6,483
95%
Cost of sales
(3,278)
(4,007)
(1,799)
82%
(7,285)
(3,317)
120%
Gross profit
2,541
2,822
1,551
64%
5,363
3,166
69%
Administrative and selling expenses
(421)
(498)
(409)
3%
(918)
(760)
21%
Operating income before other operating
results
2,120
2,324
1,142
86%
4,445
2,407
85%
Other operating results, net1
705
3,166
7,348
(90%)
3,871
21,575
(82%)
Operating income1
2,825
5,490
8,490
(67%)
8,316
23,982
(65%)
Depreciation and Amortization
342
527
397
(14%)
868
757
15%
Adjusted EBITDA1,2
3,167
6,017
8,886
(64%)
9,184
24,739
(63%)
1. Include, among others, the following
concepts:
13,485
377
3,203
7,097
(95%)
3,580
7201
(50%)
See “CVO effect” below for further
information.
Average exchange rate of period
44.01
39.01
23.58
65%
44.01
21.63
103%
Exchange rate end of period
42.46
43.35
28.85
50%
42.46
28.85
47%
NOTE: Exchange rates quoted by the Banco de la Nación Argentina
are provided only as a reference. The average exchange rate refers
to the average of the daily exchange rates quoted by the Banco de
la Nación Argentina for wire transfers (divisas) for each
period.
2. See “Disclaimer-Adjusted EBITDA” below for further
information.
Adjusted EBITDA Reconciliation
Million Ps.
2Q
2019
1Q
2019
2Q
2018
Var %
(2Q/2Q)
1H
2019
1H
2018
Var%
Consolidated Net income for the
period2
1,352
1,347
4757
(72%)
2,699
16,693
(84%)
Loss on net monetary position
1,180
1,461
769
54%
2,641
1,108
138%
Financial expenses
589
1,614
2,192
(73%)
2,203
2,928
(25%)
Financial income
(556)
(419)
(1,385)
(60%)
(975)
(1,675)
(42%)
Share of the profit of an associate
(239)
(106)
(484)
(51%)
(345)
(663)
(48%)
Income tax expenses
500
1,593
2,640
(81%)
2,093
5,929
(65%)
Net income of discontinued operations
0
-
0
N/A
-
(338)
(100%)
Depreciation and amortization
342
527
397
(14%)
868
757
15%
Adjusted EBITDA1,2
3,167
6,017
8,886
(64%)
9,184
24,739
(63%)
1. Include, among others, the following
concepts:
13,485
377
3,203
7,097
(95%)
3,580
7,201
(50%)
See “CVO effect” below for further
information.
2. See “Disclaimer-Adjusted EBITDA” below
for further information.
2Q 2019 Results Analysis
Revenues from continuing operations increased 74% to Ps.
5,819 million in the 2Q2019, as compared to Ps. 3,350 million
in the 2Q2018. The increase in revenues was mainly driven by:
- an increase in the energy generated during the 2Q2019 of 4%, as
compared to the 2Q2018, and 13 percentage points increase in the
availability of the thermal units under Energía Base, which was 92%
during 2Q2019, as compared to 79% during the 2Q2018,
- an increase in the exchange rates for the 2Q2019, higher than
the inflation for the period, which impacted tariffs set in US
dollars, in terms of argentine pesos current at the end of the
reporting period. As a reference, the average foreign exchange rate
during 2Q2019 increased 87% compared to 2Q2018, while the inflation
rate for the twelve-month period ended on June 30, 2019, was
56%,
- an increase in the fuel remuneration for units under Energía
Base regulatory framework (and other related concepts), which
amounted to Ps. 1,784 million during the 2Q2019, mainly because of
income in accordance to Res. 70/18, in some of the units under the
Energía Base regulatory framework (see “—Factors Affecting Our
Results of Operations—Our Revenues—The Energía Base”), compared to
Ps. 202 million during the 2Q2018,
- a 445% increase in the Sales under contracts, which amounted to
Ps. 546 million during the 2Q2019, as compared to Ps. 100 million
in the 2Q2018, mainly due to the energy generation of wind farms
Achiras and La Castellana, which started operation during the
3Q2018, and the revenues related to the recently acquired Brigadier
López Plant accrued during June 2019 (see Section A. Highlights for
more information) which amounted Ps. 344 million.
This was partially offset by the decrease in energy and power
prices for units under the Energy Base Regulatory framework
established by Res. 1/19, starting on March 1, 2019. As a
reference, the new tariffs are:
Items
Thermal
Hydro
Power capacity
payments Res.
1/191
Up to US$ 7,000 per MW per month
during December, January, February, June,
July and August
Up to US$ 5,500 per MW per month
during March, April, May, September,
October and
November
These prices, are multiplied by a
percentage, which depends
on the average Utilization Factor (UF) of
each unit during
the previous last twelve months (mobile
year):
- If UF<30%, unit receives 70% of the price
US$ 3,000 per
MW per month
Energy payments
Res. 1/192
US$ 5.4 per MWh for generation
with natural gas
US$ 8.4 per MWh for generation
with fuel oil/gas oil
US$ 4.9 per
MWh
1 Effective prices for capacity payment depended on the
availability of each unit, and the achievement of the Guaranteed
Bid Capacity (DIGO in Spanish) that each generator may send to
CAMMESA twice a year. For further details, see “Item 4.B. Business
Overview—The Argentine Electric Power Sector—Remuneration
Scheme—The Current Remuneration Scheme” in the annual report on
Form 20-F filed with the SEC on April 30, 2019.
2 Energy payments above mentioned includes the tariffs for
energy generated and energy operated as mentioned in Res. SRRyME
1/2019.
Gross profit increased 64% to Ps. 2,541 million, compared
to Ps. 1,551 million in 2Q2018. This increase was due to (i) the
above-mentioned increase in revenues, which was partially offset by
an increase in costs of sales that totaled Ps. 3,278 million, a 82%
increase as compared to Ps. 1,799 million in the 2Q2018. The
increase in the cost of sales was primarily driven by:
- An increase in the purchase of fuel (and related concepts) used
in our units that sell steam, or electricity under contracts or
Energía Base (when applicable), which totaled Ps. 1,822 million
during the 2Q2019, as compared to Ps. 445 million in the 2Q2018,
due to:
- The cost of the self-supplied fuel purchased in accordance to
Res. 70/18 described above;
- a higher price of natural gas used in the units that generate
steam or electric energy under the Energía Plus framework, mainly
due an increase in the exchange rate for 2Q2019 as compared to
2Q2018, which was higher than the inflation between this periods,
which impacted in the US dollars denominated price of natural gas,
in terms of argentine pesos current at the end of the reporting
period. As a reference, the average foreign exchange rate during
2Q2019 increase 87% compared to 2Q2018, while the inflation rate
for the twelve-month period ended on June 30, 2019 was 56%,
- a 8% increase in non-fuel-related costs of production, which
totaled Ps. 1,456 million in the 2Q2019, as compared to Ps. 1,355
million in the 2Q2018, mainly due to (i) a Ps. 69 million increase
in compensation for employees, and a (ii) Ps. 106 million increase
in maintenance costs, which was partially offset by Ps. 53 million
decrease in fees and compensations for services.
Gross Profit Margin totaled 44% during 2Q2019, as compared to
46% in the 2Q2018. This change was mainly related to the effect of
Res. 70/18, which increased both the income and the cost of energy
production from thermal units.
Operating income before other operating results, net,
increased 86% to Ps. 2,120 million, compared to Ps. 1,142
million in the 2Q2018. This increase was due to (i) the
above-mentioned increase in gross profits, and (ii) a
less-than-proportional increase in administrative and selling
expenses that totaled Ps. 421 million, a 3% increase as compared to
Ps. 409 million in the 2Q2018. This increase was mainly driven by
(i) a 38% increase in taxes on bank account transactions, due to
increased revenues, costs and the acquisition of the Brigadier
López Plant, among others.
Adjusted EBITDA was Ps. 3,167 million in the 2Q2019,
compared to Ps. 8,886 million in the 2Q2018. This variation was
mainly due to (i) a loss of Ps. 701 million during the 2Q2019, from
the foreign exchange difference on operating assets (mainly the
FONI trade receivables), compared to a gain of 7,097 million during
the 2Q2019; which was partially offset by (ii) the increase in
operating results before other operating income, net mentioned
above, and (iii) Ps. 1,449 million during the 2Q2019, as compared
to Ps. 345 million from interest accrued on the trade receivables
denominated in US dollars, mainly related to the FONI program.
Consolidated Net income was Ps. 1,352 million and Net income
for shareholder was Ps. 1,158 million or Ps. 0.77 per share, in the
2Q2019, compared to Ps. 4,757 million and 5,066 million,
respectively, or Ps. 3.37 per share, in the 2Q2018. In addition to
the above-mentioned factors, net income was (i) positively impacted
by lower financial expenses that amounted to Ps. 589 million in the
2Q2019, compared to Ps. 2,192 million in the 2Q2018, and (ii)
negatively impacted by lower financial income which amounted to Ps.
556 million during the 2Q2019, compared to Ps. 1,385 million in the
2Q2018, in each case under (i) and (ii), mainly due to the lower
foreign exchange difference over US dollar denominated debt and
financial assets (which excludes FONI and other trade receivables).
Additionally, and the results from the share of profit of
associates decreased to Ps. 239 million in the 2Q2019, as compared
to Ps. 484 million in the 2Q2018, mainly due to weaker results from
the operations of Ecogas.
Finally, loss from exposure to the change in the purchasing
power of the currency totaled Ps. 1,180 million during the 2Q2019,
as compared to Ps. 769 million in the 2Q2018.
FONI collections totaled Ps. 3,041 million in the 2Q2019,
-including VAT- (approximately equivalent to US$ 72 million, at the
exchange rate as of June 30, 2019), associated to the FONI trade
receivables for San Martín, Manuel Belgrano, and Vuelta de Obligado
Plants, including a portion of the amounts related to the
installments 1 to 10 (See section A. Highlights above for more
information).
1H2018 Results Analysis
Revenues from continuing operations increased 95% to Ps.
12,648 million in the 1H2019, as compared to Ps. 6,483 million
in the 1H2018. The increase in revenues was mainly driven by:
- an increase in the energy generated during the 1H2019 of 17%,
as compared to the 1H2018, and 8 percentage points increase in the
availability of the thermal units under Energía Base, which was 92%
during 2Q2019, as compared to 84% during the 2Q2018,
- an increase in the exchange rates for the 1H2019, higher than
the inflation for the period, which impacted tariffs set in US
dollars, in terms of argentine pesos current at the end of the
reporting period. As a reference, the average foreign exchange rate
during 1H2019 increased 103% compared to 1H2018, while the
inflation rate for the twelve-month period ended on June 30, 2019
was 56%,
- an increase in the fuel remuneration for units under Energía
Base regulatory framework (and other related concepts), which
amounted to Ps. 4,554 million during the 1H2019, mainly due to the
income in accordance to Res. 70/18, in some of the units under the
Energía Base regulatory framework (see “—Factors Affecting Our
Results of Operations—Our Revenues—The Energía Base”), compared to
Ps. 202 million during the 1H2018,
- a 490% increase in the Sales under contracts, which amounted to
1,112 million during the 1H2019, as compared to Ps. 189 million in
the 1H2018, mainly due to the energy generation of wind farms
Achiras and La Castellana, which started operation during the
3Q2018, and the revenues related to the recently acquired Brigadier
López Plant accrued during June 2019 (see Section A. Highlights for
more information) which amounted Ps. 344 million.
This was partially offset by the decrease in energy and power
prices for units under the Energy Base Regulatory framework
established by Res. 1/19, starting on March 1, 2019.
Gross profit increased 69% to Ps. 5,363 million, compared
to Ps. 3,166 million in 1H2018. This increase was due to (i) the
above-mentioned increase in revenues, which was partially offset by
an increase in costs of sales that totaled Ps. 7,285 million, a
120% increase as compared to Ps. 3,317 million in the 1H2018. The
increase in the cost of sales was primarily driven by:
- An increase in the purchase of fuel (and related concepts) used
in our units that sell steam, or electricity under contracts or
Energía Base (when applicable), which totaled Ps. 4,293 million
during the 1H2019, as compared to Ps. 821 million in the 1H2018,
due to:
- The cost of the self-supplied fuel purchased in accordance to
Res. 70/18 described above;
- a higher price of natural gas used in the units that generate
steam or electric energy under the Energía Plus framework, mainly
due an increase in the exchange rate for 1H2019 as compared to
1H2018, that was higher than the inflation between this periods,
which impacted in the US dollars denominated price of natural gas,
in terms of argentine pesos current at the end of the reporting
period. As a reference, the average foreign exchange rate during
1H2019 increased 103% compared to 1H2018, while the inflation rate
for the twelve-month period ended on June 30, 2019 was 56%,
- a 20% increase in non-fuel-related costs of production, which
totaled Ps. 2,992 million in the 1H2019, as compared to Ps. 2,496
million in the 1H2018, mainly due to (i) a Ps. 146 million increase
in compensation for employees, a (ii) Ps. 176 million increase in
maintenance costs, (iii) a Ps. 91 million increase in depreciation
related to the expansion in property, plants and equipment.
Gross Profit Margin totaled 42% during 1H2019, as compared to
49% in the 1H2018. This change was mainly related to the effect of
Res. 70/18, which increased both the income and the cost of energy
production from thermal units.
Operating income before other operating results, net,
increased 85% to Ps. 4,444 million, compared to Ps. 2,407
million in the 1H2018. This increase was due to (i) the
above-mentioned increase in gross profits, and (ii) a
less-than-proportional increase in administrative and selling
expenses that totaled Ps. 918 million, a 21% increase as compared
to Ps. 760 million in the 1H2018. This increase was mainly driven
by (i) a 49% increase in taxes on bank account transactions, due to
increased revenues, costs and the acquisition of the Brigadier
López Plant, among others.
Adjusted EBITDA was Ps. 9,184 million in the 1H2019,
compared to Ps. 24,739 million in the 1H2018 which included a Ps.
13,485 million gain during the 1H2018 from a one-time-gain from the
CVO Commercial Operation Approval (the “CVO effect”). Without
taking into account this extraordinary gain, the decrease would
have been 18%. This variation was mainly due to a (iii) Ps. 1,788
million gain during the 1H2019, as compared to Ps. 507 million from
interest accrued, and (ii) Ps. 2,154 million gain during the
1H2019, as compared to Ps. 7,484 million from the foreign exchange
difference, in both cases (i) and (ii) on the trade receivables
denominated in US dollars mainly related to the FONI program, which
was partially offset by, (iii) the increase in operating results
before other operating income, net mentioned above.
Consolidated Net income was Ps. 2,699 million and Net income
for shareholder was Ps. 2,538 million or Ps. 1.69 per share, in the
1H2019, compared to Ps. 16,693 million and 17,076 million,
respectively, or Ps. 11.34 per share, in the 1H2018, which included
a Ps. 13,485 million gain – before income tax- accrued during the
1H2018 from a one-time-gain from the CVO Commercial Operation
Approval (the “CVO effect”). In addition to the above-mentioned
factors, net income was (i) positively impacted by lower financial
expenses that amounted to Ps. 2,203 million in the 1H2019, compared
to Ps. 2,928 million in the 1H2018, and (ii) negatively impacted by
lower financial income which amounted to Ps. 975 million during the
2Q2019, compared to Ps. 1,675 million in the 1H2018, in each case
under (i) and (ii), mainly due to the lower foreign exchange
difference over US dollar denominated debt and financial assets
(which excludes FONI and other trade receivables). Additionally,
and the results from the share of profit of associates decreased to
Ps. 345 million in the 1H2019, as compared to Ps. 663 million in
the 1H2018, mainly due to weaker results from the operations of
Ecogas.
Finally, loss from exposure to the change in the purchasing
power of the currency totaled Ps. 2,641 million during the 1H2019,
as compared to Ps. 1,108 million in the 1H2018.
FONI collections totaled Ps. 4,377 million in the 1H2019,
-including VAT- (approximately equivalent to US$ 103 million, at
the exchange rate as of June 30, 2019), associated to the FONI
trade receivables for San Martín, Manuel Belgrano, and Vuelta de
Obligado Plants, including a portion of the amounts related to the
installments 1 to 10 (See section A. Highlights above for more
information).
Financial Situation
As of June 30, 2019, the Company and its subsidiaries had Cash
and Cash Equivalents of Ps. 812 million, and Other Current
Financial Assets of Ps. 2,001 million.
Loans and borrowings were received to finance the expansion of
the current installed capacity, which includes the construction of
the Luján de Cuyo thermal project, and the wind farms La Castellana
I, Achiras and La Castellana II, and the acquisition of the
Brigadier López Plant. For more information regarding each
financing, please see Section “A. Highlights”.
Million Ps.
As of
June 30, 2019
Cash and cash equivalents (Central Puerto
S.A. stand-alone)
441
Other financial assets (Central Puerto
S.A. stand-alone)
1,731
Financial Debt (Central Puerto S.A.
stand-alone)
(15,870)
Composed of:
Financial Debt (current) (Central Puerto
S.A. stand-alone)
(2,693)
Financial Debt (non-current) (Central
Puerto S.A. stand-alone)
(13,177)
Subtotal Individual Net Cash
Position
(13,698)
Cash and cash equivalents of
subsidiaries
371
Other financial assets of subsidiaries
271
Financial Debt of subsidiaries
Composed of:
(6,911)
Financial Debt of subsidiaries
(current)
(619)
Financial Debt of subsidiaries
(non-current)
(6,293)
Subtotal Subsidiaries Net Cash
Position
(6,270)
Consolidated Net Debt
(19,968)
Cash Flows of the 1H2019
Million Ps.
1H2019
ended June 30, 2019
Cash and Cash equivalents at the
beginning
281
Net cash flows provided by operating
activities
2,612
Net cash flows used in investing
activities
(11,742)
Net cash flows used in financing
activities
9,563
Exchange difference and other financial
results
6
Loss on net monetary position by cash and
cash
equivalents
90
Cash and Cash equivalents at the
end
812
Net cash provided by operating activities was Ps. 2,612
million during the 1H2019. This cash flow arises from (i) Ps.
8,316 million from the operating income from continuing operations
obtained during the 1H2019, (ii) Ps. 6,554 million due to a
decrease in the stock of trade receivables, mainly related to the
collections of FONI, (iii) Ps. 1,699 million in collection of
interests from clients, including the ones from FONI, during the
period, minus (iv) the non-cash items included in the operating
income, including Ps. 2,154 million from foreign exchange
difference; and (v) Ps. 6,132 million from income tax paid.
Net cash used in investing activities was Ps. 11,742 million
in the 1H2019. This amount was mainly due to (i) Ps. 5,595
million payments in payments for the purchase of property, plant
and equipment for the construction of the renewable and thermal
projects, and (ii) Ps. 6,737 million for the purchase of the
Brigadier López Plant. This was partially offset by (i) Ps. 496
million obtained by the sale of short-term financial assets,
net.
Net cash provided by financing activities was Ps. 9,563
million in the 1H2019. This amount was the result of Ps. 10,375
million in loan received related to the expansion projects
mentioned above (see Section A. Highlights) mainly related to the
acquisition of the Brigadier López Plant, which was partially
offset by interest and financial expenses paid, related to the
loans received for the expansion projects, for a net amount of Ps.
1,154 million.
E. Tables
a. Consolidated Statement of Income
2Q 2019
2Q 2018
Unaudited
Unaudited
Thousand Ps.
Thousand Ps.
Revenues
5,819,232
3,350,169
Cost of sales
(3,278,035)
(1,799,331)
Gross income
2,541,197
1,550,838
Administrative and selling expenses
(420,721)
(409,329)
Other operating income
748,582
7,436,146
Operating income
2,825,369
8,489,569
Loss on net monetary position
(1,180,397)
(768,556)
Finance income
556,133
1,384,950
Finance expenses
(588,631)
(2,192,066)
Share of the profit of associates
239,147
483,550
Income before income tax form
continuing operations
1,851,621
7,397,447
Income tax for the period
(499,579)
(2,640,386)
Net income for the period from
continuing operations
1,352,042
4,757,061
Discontinued operations
Net income after tax for the period from
discontinued operations
-
-
Net income for the period
1,352,042
4,757,061
Attributable to:
-Equity holders of the parent
1,158,508
5,066,891
-Non-controlling interests
193,534
(309,830)
1,352,042
4,757,061
Earnings per share:
Basic and diluted (Ps.)
0.77
3.37
Earnings per share from continuing
operations:
Basic and diluted (ARS)
0.77
3.37
1H 2019
1H 2018
Unaudited
Unaudited
Thousand Ps.
Thousand Ps.
Revenues
12,647,847
6,483,290
Cost of sales
(7,285,180)
(3,316,960)
Gross income
5,362,667
3,166,330
Administrative and selling expenses
(918,486)
(759,657)
Other operating income
3,942,545
8,213,452
Other operating expenses
CVO receivables update
(71,196)
(123,586)
13,485,342
-
Operating income
8,315,530
23,981,881
Loss on net monetary position
(2,640,986)
(1,107,911)
Finance income
974,861
1,674,760
Finance expenses
(2,202,742)
(2,928,168)
Share of the profit of associates
345,005
663,139
Income before income tax form
continuing operations
4,791,668
22,283,701
Income tax for the period
(2,092,719)
(5,928,863)
Net income for the period from
continuing operations
2,698,949
16,354,838
Discontinued operations
Net income for the period after tax from
discontinued operations
-
338,055
Net income for the period
2,698,949
16,692,893
Attributable to:
-Equity holders of the parent
2,538,352
17.075,995
-Non-controlling interests
160,597
(383,102)
2,698,949
16.692,893
Earnings per share:
Basic and diluted (Ps.)
1.69
11.34
Earnings per share from continuing
operations:
Basic and diluted (ARS)
1.69
11.12
b. Consolidated Statement of Financial Position
As of June 30,
2019
As of December 31,
2018
Unaudited
Audited
Thousand Ps.
Thousand Ps.
Assets
Non-current assets
Property, plant and equipment
46,137,428
27,623,777
Intangible assets
2,521,048
2,735,844
Investment in associates
2,699,274
2,446,057
Trade and other receivables
18,543,174
20,406,830
Other non-financial assets
474,706
272,907
Inventories
93,442
91,420
70,469,072
53,576,835
Current assets
Inventories
334,285
270,387
Other non-financial assets
274,849
606,062
Trade and other receivables
10,354,555
12,949,226
Other financial assets
2,001,169
2,404,798
Cash and cash equivalents
811,641
281,467
13,776,499
16,511,940
Total assets
84,245,571
70,088,775
Equity and liabilities
Equity
Capital stock
1,514,022
1,514,022
Adjustment to capital stock
14,344,934
14,344,934
Legal
1,892,764
469,291
Voluntary reserve
21,982,212
5,393,490
Retained earnings
2,538,352
18,012,195
Equity attributable to shareholders of
the parent
42,272,284
39,733,932
Non-controlling interests
880,872
572,457
Total Equity
43,153,156
40,306,389
Non-current liabilities
Other non-financial liabilities
3,328,954
2,397,765
Other loans and borrowings
19,469,564
6,369,977
Borrowings from CAMMESA
1,175,585
1,229,315
Compensation and employee benefits
liabilities
152,894
181,734
Deferred income tax liabilities
5,471,376
5,867,388
29,598,373
16,046,179
Current liabilities
Trade and other payables
3,259,646
2,117,490
Other non-financial liabilities
1,247,311
2,033,073
Borrowings from CAMMESA
1,919,431
2,219,087
Other loans and borrowings
3,311,578
823,377
Compensation and employee benefits
liabilities
389,123
478,808
Income tax payable
773,970
5,406,449
Provisions
592,983
657,923
11,494,042
13,736,207
Total liabilities
41,092,415
29,782,386
Total equity and liabilities
84,245,571
70,088,775
c. Consolidated Statement of Cash Flow
1H 2019
1H 2018
Unaudited
Unaudited
Thousand Ps.
Thousand Ps.
Operating activities
Income for the period before income tax
from continuing
operations
4,791,668
22,283,701
Income for the period before income tax
from
discontinued operations
-
402,485
Income for the period before income
tax
4,791,668
22,686,186
Adjustments to reconcile income for the
period before
income tax to net cash flows:
Depreciation of property, plant and
equipment
646,773
554,966
Net results from replacement or decreases
of property
plants and equipment
-
66,487
Amortization of intangible assets
221,604
201,710
Discount of trade and other receivables
and payables, net
27
(1,044)
CVO receivables update
-
(13,485,342)
Interest earned from customers
(1,788,213)
(506,692)
Financial income
(974,861)
(1,674,760)
Financial expenses
2,202,742
2,928,168
Share of the profit of associates
(345,005)
(663,139)
Stock-based payments
12,005
3,970
Movements in provisions and long-term
employee
benefit plan expenses
77,343
78,479
Foreign exchange difference for trade
receivables
(2,153,790)
(7,483,581)
Income from the sale of La Plata plant
-
(573,466)
Loss on net monetary position
(2,690,629)
(2,084,458)
Working capital adjustments:
Decrease in trade and other
receivables
6,553,551
1,708,988
(Increase) Decrease in other non-financial
assets and inventories
63,495
(144,240)
Increase in trade and other payables,
other non-financial
liabilities and liabilities from employee
benefits
427,749
883,520
7,044,459
2,495,752
Interest received from customers
1,699,002
27,102
Income tax paid
(6,131,608)
(2,581,752)
Net cash flows provided by (used in)
operating activities
2,611,853
(58,898)
Investing activities
Purchase of property, plant and
equipment
(5,594,685)
(1,740,242)
Acquisition of the Brigadier López Power
Plant
(6,736,771)
-
Cash flows generated from the sale of La
Plata plant
-
766,137
Dividends received
93,278
1,080,625
Sale of available-for-sale assets, net
496,232
1,733,910
Net cash flows provided by (used in)
investing activities
(11,741,946)
1,840,430
Financing activities
Banks overdrafts received (paid), net
575,627
8,794
Long term loans received
10,375,493
5,254,550
Long term loans paid
(369,275)
(2,969,886)
Interests and other loan costs paid
(1,154,219)
(136,205)
Contributions from non-controlling
interests
154,297
66,302
Dividends paid
(18,484)
(1,747,902)
Net cash flows provided by financing
activities
9,563,439
475,653
Increase in cash and cash
equivalents
433,346
2,257,185
Exchange difference and other financial
results
6,445
1,224,415
Monetary results effect on cash and cash
equivalents
90,383
508,569
Cash and cash equivalents as of January
1
281,467
160,183
Cash and cash equivalents as of March
31
811,641
4,150,352
F. Information about the Conference Call
There will be a conference call to discuss Central Puerto’s
Second Quarter 2019 results on August 13, 2019 at 13:00 New York
Time / 14:00 Buenos Aires Time.
The hosts will be Mr. Jorge Rauber, Chief Executive Officer. To
access the conference call, please dial:
United States Participants (Toll Free):
1-888-317-6003 Argentina Participants (Toll Free) : 0800-555-0645
International Participants : +1-412-317-6061 Passcode : 8145356
The Company will also host a live audio webcast of the
conference call on the Investor Relations section of the Company's
website at www.centralpuerto.com. Please allow extra time prior to
the call to visit the website and download any streaming media
software that might be required to listen to the webcast. The call
will be available for replay until August 12, 2020 at
+1-412-317-0088 with access code #10134082 and on the Company
website under the Investor Relations section.
You may find additional information on the Company at:
- http://investors.centralpuerto.com/
- www.sec.gov
- www.cnv.gob.ar
Glossary
In this release, except where otherwise indicated or where the
context otherwise requires:
- “CAMMESA” refers to Compañía Administradora del Mercado
Mayorista Eléctrico Sociedad Anónima;
- “CVP” refers to Variable Cost of Production of producing
energy, which may be declared by the generation companies to
CAMMESA;
- “CVO effect” refers to the CVO receivables update, and
interests triggered by the CVO Plant Commercial Operation
Approval;
- “Ecogas” refers collectively to Distribuidora de Gas Cuyana
(“DGCU”), and its controlling company Inversora de Gas Cuyana
(“IGCU”) and Distribuidora de Gas del Centro (“DGCE”), and its
controlling company Inversora de Gas del Centro (“IGCE”);
- “Energía Base” (legacy energy) refers to the regulatory
framework established under Resolution SE No. 95/13, as amended,
and, since February 2017, regulated by Resolution SEE No.
19/17;
- “FONINVEMEM” or “FONI”, refers to the Fondo para Inversiones
Necesarias que Permitan Incrementar la Oferta de Energía Eléctrica
en el Mercado Eléctrico Mayorista (the Fund for Investments
Required to Increase the Electric Power Supply) and Similar
Programs, including Central Vuelta de Obligado (CVO)
Agreement;
- “MATER”, refers to Mercado a Término de Energía Renovable, is
the regulatory framework that allows generators to sell electric
energy from renewable sources directly to large users.
- “p.p.”, referes to percentage points;
Disclaimer
Rounding amounts and percentages: Certain amounts and
percentages included in this release have been rounded for ease of
presentation. Percentage figures included in this release have not
in all cases been calculated on the basis of such rounded figures,
but on the basis of such amounts prior to rounding. For this
reason, certain percentage amounts in this release may vary from
those obtained by performing the same calculations using the
figures in the financial statements. In addition, certain other
amounts that appear in this release may not sum due to
rounding.
This release contains certain metrics, including information per
share, operating information, and others, which do not have
standardized meanings or standard methods of calculation and
therefore such measures may not be comparable to similar measures
used by other companies. Such metrics have been included herein to
provide readers with additional measures to evaluate the Company’s
performance; however, such measures are not reliable indicators of
the future performance of the Company and future performance may
not compare to the performance in previous periods.
OTHER INFORMATION
Central Puerto routinely posts important information for
investors in the Investor Relations support section on its website,
www.centralpuerto.com. From time to time, Central Puerto may use
its website as a channel of distribution of material Company
information. Accordingly, investors should monitor Central Puerto’s
Investor Support website, in addition to following the Company’s
press releases, SEC filings, public conference calls and webcasts.
The information contained on, or that may be accessed through, the
Company’s website is not incorporated by reference into, and is not
a part of, this release.
CAUTIONARY STATEMENTS RELEVANT TO FORWARD-LOOKING
INFORMATION
This release contains certain forward-looking information and
forward-looking statements as defined in applicable securities laws
(collectively referred to in this Earnings Release as
“forward-looking statements”) that constitute forward-looking
statements. All statements other than statements of historical fact
are forward-looking statements. The words ‘‘anticipate’’,
‘‘believe’’, ‘‘could’’, ‘‘expect’’, ‘‘should’’, ‘‘plan’’,
‘‘intend’’, ‘‘will’’, ‘‘estimate’’ and ‘‘potential’’, and similar
expressions, as they relate to the Company, are intended to
identify forward-looking statements.
Statements regarding possible or assumed future results of
operations, business strategies, financing plans, competitive
position, industry environment, potential growth opportunities, the
effects of future regulation and the effects of competition,
expected power generation and capital expenditures plan, are
examples of forward-looking statements. Forward-looking statements
are necessarily based upon a number of factors and assumptions
that, while considered reasonable by management, are inherently
subject to significant business, economic and competitive
uncertainties and contingencies, which may cause the actual
results, performance or achievements of the Company to be
materially different from any future results, performance or
achievements expressed or implied by the forward-looking
statements.
The Company assumes no obligation to update forward-looking
statements except as required under securities laws. Further
information concerning risks and uncertainties associated with
these forward-looking statements and the Company’s business can be
found in the Company’s public disclosures filed on EDGAR
(www.sec.gov).
Adjusted EBITDA
In this release, Adjusted EBITDA, a non-IFRS financial measure,
is defined as net income for the year, plus finance expenses, minus
finance income, minus share of the profit of associates, minus
depreciation and amortization, plus income tax expense, plus
depreciation and amortization, minus net results of discontinued
operations.
Adjusted EBITDA is believed to provide useful supplemental
information to investors about the Company and its results.
Adjusted EBITDA is among the measures used by the Company’s
management team to evaluate the financial and operating performance
and make day-to-day financial and operating decisions. In addition,
Adjusted EBITDA is frequently used by securities analysts,
investors and other parties to evaluate companies in the industry.
Adjusted EBITDA is believed to be helpful to investors because it
provides additional information about trends in the core operating
performance prior to considering the impact of capital structure,
depreciation, amortization and taxation on the results.
Adjusted EBITDA should not be considered in isolation or as a
substitute for other measures of financial performance reported in
accordance with IFRS. Adjusted EBITDA has limitations as an
analytical tool, including:
• Adjusted EBITDA does not reflect changes in, including cash
requirements for, our working capital needs or contractual
commitments;
• Adjusted EBITDA does not reflect our finance expenses, or the
cash requirements to service interest or principal payments on our
indebtedness, or interest income or other finance income;
• Adjusted EBITDA does not reflect our income tax expense or the
cash requirements to pay our income taxes;
• although depreciation and amortization are non-cash charges,
the assets being depreciated or amortized often will need to be
replaced in the future, and Adjusted EBITDA does not reflect any
cash requirements for these replacements;
• although share of the profit of associates is a non-cash
charge, Adjusted EBITDA does not consider the potential collection
of dividends; and
• other companies may calculate Adjusted EBITDA differently,
limiting its usefulness as a comparative measure.
The Company compensates for the inherent limitations associated
with using Adjusted EBITDA through disclosure of these limitations,
presentation of the Company’s consolidated financial statements in
accordance with IFRS and reconciliation of Adjusted EBITDA to the
most directly comparable IFRS measure, net income. For a
reconciliation of the net income to Adjusted EBITDA, see the tables
included in this release.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190812005630/en/
Chief Financial Officer Fernando Bonnet Investor
Relations Officer Tomás Daghlian Tel (+54 11) 4317 5000
ext.2192 inversores@centralpuerto.com www.centralpuerto.com
Grafico Azioni Central Puerto (NYSE:CEPU)
Storico
Da Dic 2024 a Gen 2025
Grafico Azioni Central Puerto (NYSE:CEPU)
Storico
Da Gen 2024 a Gen 2025
