Central Puerto (CEPU) Q2 2024 earnings summary

Executive summary

• Installed capacity reached 6,703 MW in Q2 2024, with energy generation of 4,985 GWh, up 5% year-over-year, despite a 6% capacity decline due to the disconnection of two inactive steam turbines at Central Costanera.

• Revenues rose 15% year-over-year to $168 million, driven by higher spot, contract, and steam sales, and improved hydro and renewable output.

• Adjusted EBITDA fell 27% year-over-year to $46 million, and net income dropped to $8 million, impacted by non-cash effects from currency devaluation, inflation, and lower financial results.

• Maintained a leading position in private power generation with a diversified asset portfolio.

• Net debt reduced to $229 million, with a net debt to adjusted EBITDA ratio of 0.9x.

Financial highlights

• Revenue for Q2 2024: $168 million, up 15% year-over-year.

• Adjusted EBITDA: $46 million, down 27% year-over-year.

• Net income: $8 million, down 49–54% year-over-year.

• Net cash from operating activities in H1 2024: $67 million; cash and equivalents at period end: $5 million; total current liquidity including financial assets: $153–158 million.

• Net debt reduced by $58 million since December 2023.

Outlook and guidance

• CapEx for Brigadier López Combined Cycle and San Carlos Solar Farm expected at $90 million and $13 million, respectively, through 2025; both projects are on schedule and on budget.

• No immediate plans to tap debt markets; focus remains on ongoing projects.

• Interest in participating in upcoming hydro plant concession auctions, especially Piedra del Águila.

• Transition period for certain regulatory contracts extended to December 28, 2024.

• Regulatory updates increased spot market remuneration by 25% in June and 3% in August 2024.