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 three-month and nine-month
periods ended September 30, 2018 (“Third Quarter” or “3Q2018”, and
“Nine-month 2018” or “9M2018”, respectively).
A conference call to discuss 3Q2018 financial results will be
held on November 13, 2018 at 12:00 p.m. Eastern Time (see details
below). All information provided is presented on a consolidated
basis, unless otherwise stated.
All figures are expressed in Argentinean Pesos and growth
comparisons refer to the same period of the prior year, unless
otherwise stated. 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
nine-month period ended September 30, 2018 and the notes thereto,
which will be available on the Company’s website.
A. Third Quarter 2018 Highlights
Energy generation increased 12% to 4,422 GWh, as compared
to 3,937 GWh during the same period of 2017 (see section C. Main
Operating Metrics).
Construction of Terminal 6 (330 MW) and Luján de Cuyo (93
MW). During the 3Q2018, Central Puerto continued with the civil
works and purchase of equipment for the construction of the new
cogeneration projects.
Operating income (before other operating results) increased
178% to Ps. 2,054 million after a 128% increase in
Revenues, and an 8 p.p. increase in Gross Profit Margins to
66%, compared to 58% in the 3Q2017 (see section D.
Financials).
Adjusted EBITDA increased to Ps. 8,808 million in 3Q2018,
compared to Ps. 974 million in 3Q2017, mainly due to a Ps. 6,529
million gain in the 3Q2018 as a result of foreign exchange
differences and interest accrued on the trade receivables
denominated in US dollars (see section D. Financial).
“We had an excellent third quarter. On the
operational side, our energy generation increased 12%, as compared
to 3% of the total electric energy generation market.
Regarding our renewable projects, our wind
farms La Castellana I and Achiras I commenced its operations,
adding 147 MW of new capacity to our portfolio, which at the end of
the quarter represented 12% of the total renewable installed
capacity of Argentina."
Jorge Rauber, CEO Central Puerto
Renewable Energy
Commercial operation of wind farms La Castellana I and
Achiras I: La Castellana I and Achiras I wind farms, with an
aggregate installed capacity of 147 MW, started its operations in
August and September 2018, respectively.
Purchase of Vientos La Genoveva S.A.U. and Vientos La
Genoveva II S.A.U. On August 6, 2018 Central Puerto purchased
from its subsidiary CP Renovables S.A., the special purpose vehicle
companies (SPVs) Vientos La Genoveva S.A.U. and Vientos La Genoveva
II S.A.U., which are developing the wind farms La Genoveva I and La
Genoveva II, respectively. As a consequence, Central Puerto S.A.
currently holds a 100% direct stake in both projects.
Purchase of the solar project El Puesto. On August 2018
Central Puerto purchased the solar project El Puesto, located in
the Province of Catamarca. The project will have a power capacity
of 12 MW and will sell its energy to private off-takers under the
MATER regulation (“MATER” stands for “Term Market for Renewable
Energy”). The expected commercial operation date is August
2020.
B. Recent news
Res. 70/2018. On November 7, 2018 the Secretariat of
Energy issued Res. 70/2018, which authorized generators to procure
their own fuel for assets under the Energía Base Regulatory
framework. If generation companies opt to take this option,
CAMMESSA will value and pay the generators their respective fuel
costs in accordance with the Variable Costs of Production (CVP)
declared by each generator to CAMMESA. According to CAMMESA’s
procedure, the machines with the lower CVPs are dispatched first,
and consequently, may produce more electric energy.
The Agency in Charge of Dispatch (Organismo Encargado del
Despacho or “OED” using the Spanish acronym) -CAMMESA- will
continue to supply the fuel for those generation companies that do
not elect to take this option.
Application of IAS 29. Given that Argentina’s accumulated
triennial inflation, either calculated based on the wholesale price
index or the consumer price index, is currently over 100%, and the
revised targets of the national government, and other available
projections, indicate that this trend will not reverse in the short
term, the Argentine economy is currently considered
hyperinflationary under IAS 29. Under IAS 29, entities that must
prepare their financial statements pursuant to IFRS, and whose
functional currency is the Argentine peso, such as Central Puerto,
must restate their financial statements relating to annual or
intermediate periods closed after July 1, 2018. Such restatement
must take place as if the economy had always been
hyperinflationary, using a general price index that reflects
changes in the purchasing power of the currency.
However, article 3 of Chapter III, Title IV of the Rules of the
CNV (N.T. 2013 and amendments) establishes that the entities
subject to the control of the CNV cannot apply the restatement
method of financial statements in a homogeneous currency provided
by IAS 29. This is because Decree No. 1259/2002 (amended by Decree
No. 664/2003) instructs CNV not to accept the presentation of
financial statements adjusted for inflation. The exclusion of IAS
29 in the application of IFRS will proceed until such a decree is
in force.
Although our financial statements as of and for the period ended
on September 30, 2018 do not include the effects of the inflation
adjustment, the existence of important variations caused by
inflation in the factors that affect Central Puerto’s business,
such as the wage cost, the prices of the main raw materials and of
other inputs, the interest rate of other outstanding indebtedness
and the exchange rate, as well as the financial situation and the
results of the Company, and, therefore, these variations should be
taken into account when reading our financial statements. We
include more information on this issue in a note to our financial
statements as of and for the nine-month period ended on September
30, 2018.
In accordance with SEC rules, our annual report on Form 20-F for
the fiscal year ended December 31, 2018 will include Financial
Statements applying IAS 29. As of the date of this release, we are
in the process of quantifying the impact of applying IAS 29, which
we expect will be significant. We include a summary of the effects
that could derive of applying IAS 29 in a note to our financial
statements as of and for the nine-month period ended on September
30, 2018.
C. Main operating metrics
The table below sets forth key operating metrics for 3Q2018,
compared to 2Q2018 and 3Q2017, and 9M2018, compared to 9M2017:
Key Metrics
3Q
2018
2Q
2018
3Q
2017
Var %
(3Q /3Q)
9M
2018
9M
2017
Var
%
Continuing Operations
Energy Generation (GWh) 4,422
3,145 3,937 12%
11,007 11,588 (5%) -Electric
Energy Generation-Thermal 2,911 2,109 2,986 (3%) 7,629 9,446 (19%)
-Electric Energy Generation - Hydro 1,456 1,035 951 53% 3,323 2,142
55% -Electric Energy Generation - Wind 55 - -
N/A 55 - N/A
Installed capacity (MW;
EoP1) 3,810 3,663 3,791
1% 3,810 3,791 1% -Installed capacity
-Thermal (MW) 2,222 2,222 2,350 (5%) 2,222 2,350 (5%) -Installed
capacity - Hydro (MW) 1,441 1,441 1,441 0% 1,441 1,441 0%
-Installed capacity - Wind (MW) 147 - -
N/A 147 - N/A
Availability -
Thermal2 94% 79%
91% 2 p.p. 87% 89%
(2 p.p.) Steam production (thousand Tons)
286 285 289
(1%) 846 888 (5%)
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.
Source: CAMMESA; company data.
In 3Q2018, energy generation from continuing operations
increased 12% to 4,422 GWh, compared to 3Q2017, mainly because of a
53% increase in hydro generation, which recovered after 2016-2017’s
drought, and the start of operations from the wind farms Achiras I
and La Castellana I, while thermal production in the period
decreased 3%. During 3Q2018, machine availability of thermal units
was 94%, compared to 91% in 3Q2017, showing a sustained level and
well above the market average availability for thermal units for
the same period of 79%, according to data from CAMMESA.
Finally, steam production showed a 1% decrease totaling 286,000
tons produced during 3Q2018 compared to 289,000 tons during the
3Q2017, due to less demand by our client.
In 9M2018, energy generation from continuing operations
decreased 5% to 11,007 GWh, compared to 9M2017, affected by a 19%
decrease in thermal generation mainly due to scheduled maintenance
in the Puerto Combined Cycle Plant during 2Q2018. The temporary
impact on thermal production was partially offset by a 55% increase
in hydro generation due to greater water flow. During 9M2018,
machine availability of thermal units was 87%, compared to 89% in
9M2017, mainly due to the above-mentioned extension (unscheduled)
of the maintenance of the Puerto Combined Cycle Plant. Nonetheless,
Central Puerto’s availability was higher than the market average of
79% for the same period, according to data from CAMMESA.
Finally, during 9M2018, steam production decreased 5% to 846,000
tons compared to 888,000 during the same period of 2017, due to
less demand by our client.
Renewable energy
During 3Q2018, La Castellana I (99MW) and Achiras I (48MW) wind
farms commenced their commercial operations. These plants generated
and sold, under the RenovAr Program, a total of 55 GWh of electric
energy during their first months of operations.
D. Financials
Main financial magnitudes of continuing operations
Million Ps. 3Q
2Q 3Q
Var % 9M
9M Var
2018 2018 2017 (3Q/3Q) 2018
2017 % Revenues 3,513 2,102 1,539
128% 7,419
4,021
84% Cost of sales (1,191)
(937) (652)
83% (2,876)
(1,955)
47% Gross profit
2,322 1,165
887 162%
4,543 2,067
120% Administrative and selling expenses
(268) (255)
(150)
79%
(726) (447)
62%
Operating income before other
operating results
2,054 910
738 178%
3,818 1,620
136% Other operating results,
net
1 6,630 4,651
161
4,015%
20,036 283
6,989% Operating income 8,684 5,561
898 867% 23,854 1,902 1,154%
Depreciation and Amortization 123
67 74
62% 264 204
25% Adjusted EBITDA2
8,808 5,628
972 804%
24,118 2,106
1,041% 1 Other operating results, net
include, among others, the following concepts:
- - - N/A 7,959
- N/A
- Foreign Exchange Difference and
interests related to FONI trade
receivables
6,297 4,456 38 16,554% 10,802 79 13,564%
See “CVO effect” below for further
information.
2 See “Disclaimer-Adjusted EBITDA” below
for further information.
Average exchange rate of period
31.96 23.58
17.29 85%
31.96 16.26
97% Exchange rate end of period
41.25 28.85
17.31 138%
41.25 17.31
138%
NOTE: Exchange rates quoted by the Banco de la Nación Argentina
are provided only as a reference. The average exchange rate is
calculated as the average of the daily exchange rates quoted by the
Banco de la Nación Argentina for wire transfers (divisas) for the
relevant period.
Adjusted EBITDA Reconciliation
Million Ps.
3Q
2018
2Q
2018
3Q
2017
Var %
(3Q/3Q)
9M
2018
9M
2017
Var %
Net income for the period2 5,404 3,943 806
571% 16,849 2,079
710%
Financial expenses 1,993 1,142 162
1,130% 3,395 486
599% Financial income (459) (875) (124)
271% (1,486)
(836)
78% Share of the profit of an associate (423) (259)
(131)
224% (831) (223)
273% Income tax expenses 2,170
1,610 352
516% 6,457 822
685% Depreciation and
amortization 123 67 74
62% 264 204
25% Net income of
discontinued operations - - (167)
(100%) (530) (426)
25%
Adjusted EBITDA1,2 8,808
5,628 972 805%
24,118 2,106 1,042% 1 Net income
of the period includes, among others, the following Other operating
results, net concepts:
- - - N/A 7,959
- N/A
- Foreign Exchange Difference and interests related to FONI trade
receivables
6,297 4,456 38 16,554% 10,802 79 13,564%
See “CVO effect” below for further
information.
2 See “Disclaimer-Adjusted EBITDA” below
for further information.
3Q2018 Results Analysis
Revenues from continuing operations increased 128% to Ps.
3,513 million in the 3Q2018, as compared to Ps. 1,539 million
in 3Q2017. The increase in revenues was mainly driven by (i) the
tariff increase established by Res. 19/17, which set higher prices
for energy generation and machine availability and set the prices
in US dollars (3Q2018 was fully-impacted by the November 2017
tariff increase), (ii) an 85% increase in the average exchange rate
of 3Q2018, as compared to the average exchange rate of 3Q2017,
which impacted on tariffs set in US dollars, (iii) a 12% increase
in energy generation from continuing operations that totaled 4,422
GWh during 3Q2018, as compared to 3,937 during 3Q2017, because of a
53% increase in generation form our hydro plants, and (iv) higher
availability from our thermal units, which totaled 94% during
3Q2018.
The table below sets forth the tariff scheme for Energía Base
effective since November 2017, by source of generation:
Thermal Hydro
Capacity payments Res.
19/171
Up to US$ 7,000 per MW per month
US$ 3,000 per MW per
month
Energy payments
Res. 19/17
US$ 7 per MWh for generation with natural gas
US$ 10 per MWh for generation with fuel
oil/gas oil
US$ 4.9 per MWh
1Effective prices for capacity payment depend 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 27, 2018.
Operating income before other operating results, net,
increased 178% to Ps. 2,054 million, compared to Ps. 738
million in the 3Q2017. This increase was due to (i) the
above-mentioned increase in revenues, and (ii) a
less-than-proportional increase in costs of sales in 3Q2018 that
totaled Ps. 1,191 million, an increase of 82% as compared to Ps.
652 million in 3Q2017. The increase in the cost of sales was
primarily driven by (i) an increase in the natural gas
transportation and distribution tariffs and (ii) a 85% increase in
the average exchange rate of 3Q2018, as compared to the average
exchange rate of 3Q2017, which impacted the dollar-denominated
price of natural gas and natural gas transportation and
distribution tariffs, which was partially offset by (iii) a lower
cost of the natural gas used for the units that generate steam and
electric energy under the Energía Plus framework. As a consequence,
Gross Profit Margin increased 8 p.p., reaching 66% in the 3Q2018.
Additionally, the cost of administrative and selling expenses
increased 79% totaling Ps. 268 million in 3Q2018 compared to Ps.
150 million in the 3Q2017. This increase was mainly driven by (i) a
93% increase in compensation to employees as a result of x) an
increase in the number of employees during the 3Q2018 as compared
to the same period of 2017, mainly related to the development of
the new thermal and renewable projects and y) salary adjustments
agreed in the collective bargaining agreements during the period,
and (ii) a 160% increase in taxes on bank account transactions, due
to increased revenues, costs and capital investments completed
during the period.
Adjusted EBITDA increased to Ps. 8,808 million in 3Q2018,
compared to Ps. 974 million in 3Q2017. This exceptionally high
increase was driven by: (i) the increase in operating results
before other operating income, net mentioned above, (ii) a Ps.
6,297 million gain in the 3Q2018 from the foreign exchange
difference and interest accrued on the trade receivables
denominated in US dollars, mainly from FONI.
Net income increased to Ps. 5,404 million or Ps. 3.79 per
share, in 3Q2018, compared to Ps. 806 million or Ps. 0.53 per
share, in 3Q2017. In addition to the above-mentioned factors, net
income was (i) negatively impacted by higher financial expenses
that amounted to Ps. 1,993 million in 3Q2018, compared to Ps. 162
million in 3Q2017, and (ii) positively impacted by higher financial
income which amounted Ps. 459 million during 3Q2018, compared to
Ps. 124 million in the 3Q2017, in each case under (i) and (ii),
mainly due to the foreign exchange difference over US dollar
denominated debt and financial assets (which excludes FONI and
other trade receivables). Additionally, results from the share of
profit of associates increased to Ps. 423 million in 3Q2018, as
compared to Ps. 131 million in 3Q2017, mainly due to higher net
income from Ecogas.
FONI collections were Ps. 143 million in 3Q2018, compared
to Ps. 90 million in 3Q2017 -both including VAT- (equivalent to
approximately US$ 4 million and US$ 5 million, respectively, at the
average exchange rate of each period), in both cases associated to
the FONI trade receivables for San Martín and Manuel Belgrano
Plants. As for the trade receivables associated with the CVO
agreement, certain documentation has substantially been finalized
by CAMMESA and is ready to be signed by the authorities.
9M2018 Results Analysis
Revenues from continuing operations increased 84% to Ps.
7,419 million in the 9M2018, as compared to Ps. 4,021 million
in 9M2017. The increase in revenues was mainly driven by (i) the
tariff increase established by Res. 19/17, which set higher prices
for energy generation and machine availability and set the prices
in US dollars (9M2018 was fully-impacted by the November 2017
tariff increase) and (ii) a 97% increase in the average exchange
rate of 9M2018, as compared to the average exchange rate of 9M2017,
which impacted tariffs set in US dollars; which was partially
offset by a 5% decrease in energy generation from continuing
operations that totaled 11,007 GWh during 9M2018, and less
availability from our thermal units during 9M2018, mainly because
of the scheduled maintenance of the Puerto Combined Cycle
Plant.
Operating income before other operating results, net,
increased 136% to Ps. 3,818 million, compared to Ps. 1620
million in 9MQ2017. This increase was due to (i) the
above-mentioned increase in revenues, and (ii) a
less-than-proportional increase in costs of sales that totaled Ps.
2,876 million, a 47% increase as compared to Ps. 1,955 million in
9M2017. The increase in the cost of sales was primarily driven by
(i) an increase in the natural gas transportation and distribution
tariffs and (ii) a higher cost of natural gas for the units that
generate steam or electric energy under the Energía Plus framework,
mainly due to a 97% increase in the average exchange rate of
9M2018, as compared to the average exchange rate of 9M2017, which
impacted the dollar-denominated price of natural gas. As a
consequence, Gross Profit Margin increased 10 p.p., reaching 61% in
9M2018. Additionally, the cost of administrative and selling
expenses increased 62% totaling Ps. 726 million in 9M2018 compared
to Ps. 447 million in the 9M2017. This increase was mainly driven
by (i) a 44% increase in compensation to employees mainly as a
result of salary adjustments agreed in the collective bargaining
agreements during the period, and (ii) a 60% increase in fees and
compensation for professional services due to legal and financial
advisory and consultancy services used during the period and (iii)
a 190% increase in taxes on bank account transactions, due to
increased revenues, costs and capital investments completed during
the period.
Adjusted EBITDA increased to Ps. 24,118 million in
9M2018, compared to Ps. 2,113 million in 9M2017. This
exceptionally high increase was driven by (i) the increase in
operating results before other operating income, net mentioned
above; (ii) a Ps. 7,959 million during the 9M2018 from a
one-time-gain from the CVO Commercial Operation Approval (the “CVO
effect”) and (iii) Ps. 11,504 million during the 9M2018 from the
foreign exchange difference and interest accrued on the trade
receivables denominated in US dollars, mainly from FONI trade
receivables.
Net income increased to Ps. 16,849 million or Ps. 11.53 per
share, in 9M2018, compared to Ps. 2,079 million or Ps. 1.37 per
share, in 9M2017. In addition to the above-mentioned factors, net
income was (i) was negatively impacted by higher financial expenses
that amounted to Ps. 3,395 million in 9M2018, compared to Ps. 486
million in 9M2017, and (ii) positively impacted by higher financial
income which amounted to Ps. 1,486 million during 9M2018, compared
to Ps. 836 million in 9M2017, in each case under (i) and (ii),
mainly due to the foreign exchange difference over US dollar
denominated debt and financial assets (which excludes FONI and
other trade receivables). Additionally, results from the share of
profit of associates increased to Ps. 831 million in 9M2018, as
compared to Ps. 223 million in 9M2017, mainly due to higher net
income from Ecogas and TGM.
FONI collections increased to Ps. 349 million in 9M2018,
compared to Ps. 258 million in 9M2017 -both including VAT-
(equivalent to approximately US$ 15 million and US$ 16 million,
respectively, at the average exchange rate of each period), in both
cases associated to the FONI trade receivables for San Martín and
Manuel Belgrano Plants. As for the trade receivables associated
with the CVO agreement, certain documentation has substantially
been finalized by CAMMESA and is ready to be signed by the
authorities.
Financial Situation
As of September 30, 2018, the Company and its subsidiaries
showed a strong balance sheet with Cash and Cash Equivalents of Ps.
826 million, and Current Financial Assets of Ps.
917 million.
Loans and borrowings totaling Ps. 6,716 million were received
mainly by Central Puerto’s subsidiaries CP Achiras and CP La
Castellana, to finance the construction of La Castellana I and
Achiras I wind farms. From these, Ps. 920 million were current (due
date of less than one year), and Ps. 5,796 million were
non-current. The IFC-IIC facilities have to be repaid in 52
quarterly equal installments starting in February 2019 in the case
of CP La Castellana, and May 2019, in the case of CP Achiras.
Million Ps. As of
September 30, 2018
Cash and cash equivalents 484 Other financial assets
880 Financial Debt 0
Subtotal Individual
Net Cash Position 1,364 Cash and
cash equivalents of subsidiaries 342 Other financial assets of
subsidiaries 37 Financial Debt of subsidiaries
Composed of:
(6,716) Financial Debt of subsidiaries (current) (920) Financial
Debt of subsidiaries (non-current) (5,796)
Subtotal Subsidiaries Net Cash Position
(6,336)
Consolidated Net Cash Position
(4,972)
Cash Flows for 9M2018
Million Ps. 9M2018
Ended September 30, 2018
Cash and Cash equivalents at the beginning 89 Net
cash flows provided by operating activities 1506 Net cash
flows used in investing activities (2,217) Net cash flows provided
by financing activities 314 Exchange difference and other financial
results 1135
Cash and Cash equivalents at the end
826
Net cash provided by operating activities was Ps.
1,505 million during 9M2018. This cash flow arises from
Ps. 23,343 million from the operating income from continuing
operations obtained during the 9M2018, minus the non-cash items
included in it, which were mainly: (i) Ps. 7,959 million from the
one-time CVO receivables update and interest, (ii) Ps. 10,654
million from trade receivables foreign exchange difference, (iii)
Ps. 520 million from the discount of accounts receivables and
payable, net, mainly from the present value of accounting provision
for the income tax, payable in May 2019 and (iv) Ps. 1,986 million
from income tax paid.
Net cash used in investing activities was Ps.
2,217 million in 9M2018. This amount was mainly due to (i)
payments that amounted to Ps. 3,909 million for the purchase
of property, plant and equipment for the construction of Achiras I
and La Castellana I wind farms, and thermal cogeneration units
Terminal 6 and Luján de Cuyo. This was partially offset by
partially offset by (i) Ps. 435 million obtained by the sale of
short-term financial assets, net, (ii) Ps. 669 million from
proceeds from dividends from associates, mentioned above and (iii)
Ps. 587 million from the proceeds of the La Plata Plant Sale.
Net cash provided by financing activities was Ps. 314 million
in 9M2018. The main financing activities during 9M2018 were the
above-mentioned long-term loans received by CP Achiras and CP La
Castellana, for the construction of the Achiras I and La Castellana
I wind farms for a net amount of Ps. 1,411 million, after deducting
the repayment of long term loans during 9M2018, which was partially
offset by (i) Ps. 1,054 million in cash dividend distributed to
Central Puerto’s stockholders, and (ii) Ps. 322 million paid in
interest and financial expenses.
E. Tables
a. Consolidated Income Statement
9M2018 9M2017 Thousand
Ps. Thousand Ps. Revenues 7,419,288 4,021,380
Cost of sales (2,876,055) (1,954,777)
Gross income
4,543,233 2,066,603 Administrative and selling
expenses (725,602) (446,999) Other operating income 12,152,357
318,218
Other operating expenses
CVO receivables update and interests
(74,718) (35,575)
-
7,958,658
Operating income 23,853,928
1,902,247 Finance Income 1,458,523 835,800 Finance
Expenses (3,394,618) (485,673) Share of the profit of associates
830,691 222,915
Income before income tax form
continuing
operations
22,775,524 2,475,289 Income tax for the period
(6,456,817) (822,262)
Net income for the period from
continuing
operations
16,318,707 1,653,027
DISCONTINUED OPERATIONS
Net income for the period from
non-continuing
operations
530,489 426,062
Net income for the period
16,849,196 2,079,089 3Q2018
2Q2018
3Q2017 Thousand Ps. Thousand Ps.
Thousand Ps. Revenues 3,513,311 2,101,825
1,539,456 Cost of sales (1,191,262) (936,735) (652,165) Gross
income 2,322,049 1,165,090
887,291 Administrative and
selling expenses (268,188) (255,210) (149,764) Other operating
income 6,661,153 4,676,293 177,221 Other operating expenses
(30,707) (25,653) (16,630) CVO receivables update and interests - -
-
Operating income 8,684,307 5,560,520
898,118 Finance Income 459,458 875,360 123,803
Finance Expenses (1,992,971) (1,141,801) (161,983) Share of the
profit of associates 423,333 259,297 130,722
Income before
income tax form continuing operations 7,574,127
5,553,376 990,660 Income tax for the period
(2,169,645) (1,610,330) (352,034)
Net income for the period from
continuing operations 5,404,482 3,943,046
638,626
DISCONTINUED OPERATIONS
Net income for the period from non-continuing
operations - - 166,986
Net income for the
period 5,404,482 3,943,046 805,612
b. Consolidated Statement of Financial
Position
As of September 30,
2018
As of December 31,
2017
Thousand Ps. Thousand Ps. Assets
Non-current assets Property, plant and equipment 11,699,684
7,431,728 Intangible assets 579,395 187,833 Investment in
associates 1,147,042 985,646 Trade and other receivables 18,690,258
2,602,213 Other non-financial assets 242,523 12,721 Inventories
48,203 48,203 Other financial assets 44,745 - 32,451,850 11,268,344
Current assets Inventories 166,942 110,290 Other
non-financial assets 705,062 470,895 Trade and other receivables
9,192,004 3,887,065 Other financial assets 917,457 1,110,728 Cash
and cash equivalents 826,231 88,633 11,807,696 5,667,611 Assets
held-for-sale - 143,014 11,807,696 5,810,625
Total assets
44,259,546 17,078,969
Equity and liabilities Capital
stock 1,514,022 1,514,022 Adjustment to capital stock 664,988
664,988 Merger premium 376,571 376,571 Legal and other reserves
668,813 519,189 Voluntary reserve 2,744,471 450,865 Retained
earnings 17,366,464 3,503,046 Accumulated other comprehensive
income - 43,284
Equity attributable to shareholders of the
parent 23,335,329 7,071,965 Non-controlling interests 36,417
289,035
Total Equity 23,371,746 7,361,000
Non-current liabilities Other non-financial liabilities
2,208,002 468,695 Other loans and borrowings 5,795,825 1,478,729
Borrowings from CAMMESA 933,527 1,055,558 Compensation and employee
benefits liabilities 117,015 113,097 Deferred income tax
liabilities 1,719,879 703,744 10,744,248 3,819,823
Current
liabilities Trade and other payables 1,209,328 1,017,306
Borrowings from CAMMESA 1,820,826 1,753,038 Other non-financial
liabilities 1,313,420 659,668 Other loans and borrowings 919,708
505,604 Compensation and employee benefits liabilities 337,716
323,078 Income tax payable 4,040,635 1,096,817 Provisions 471,919
413,474 10,113,552 5,768,985 Liabilities associated with the assets
held for sale - 129,161 10,113,552 5,898,146
Total
liabilities 20,887,800 9,717,969
Total equity and
liabilities 44,259,546 17,078,969
c. Consolidated Statement of Cash Flow
9M2018 9M2017 Thousand
Ps. Thousand Ps. Operating activities
Income for the period before income tax
from continuing
operations
22,775,524 2,475,289
Income for the period before income tax
from discontinued
operations
567,628 655,481 Income for the period before income tax
23,343,152 3,130,770 Adjustments to reconcile
income for the period before income tax to net cash
flows: Depreciation of property, plant and equipment 237,840
181,468 Disposal of property, plant and equipment 30,917 411
Amortization of intangible assets 26,336 29,614 Discount of
accounts receivable and payable, net (519,971) (17,598) CVO
receivables update and interests (7,958,658) - Interest earned from
customers (850,489) (155,942) Financial income (1,485,523)
(835,800) Financial expenses 3,394,618 485,927 Share of the profit
of associates (830,690) (222,915) Stock-based payments 3,312 -
Movements in provisions and long-term
employee
benefit plan expenses
81,990 57,873 Trade receivables foreign Exchange difference
(10,653,625) - Income from the sale of La Plata plant (572,992) -
Working capital adjustments: Increase in trade and
other receivables (2,573,032) (658,707)
Decrease (Increase) in other non-financial
assets and
inventories
(520,621) (28,602) Increase in trade and other payables, other non-
financial liabilities and liabilities from employee benefits
2,314,360 235,807
3,466,923 2,202,306 Interest
received from customers 24,692 16,451 Income tax paid (1,985,880)
(574,684)
Net cash flows provided by operating activities
1,505,735 1,644,073 Investing
activities Purchase of property, plant and equipment
(3,908,715) (1,034,693) Sale of financial assets, net 435,437
1,183,627 Dividends received 669,348 36,372 Cash flows generated
from the sale of La Plata plant 586,845 - Others - (6)
Net cash
flows provided by investing activities (2,217,085)
185,300 Financing activities Short term loans
(settlements) proceeds, net 23,737 (191,817) Long term loans
received 3,188,944 - Long term loans paid (1,778,260) - Interests
and other loan costs paid (322,119) (42,758) Dividends paid
(1,053,620) (1,279,393) Loans cancelled - (994,966) Borrowings
received from CAMMESA - 403,427 Contributions from non-controlling
interests 255,142 266,913
Net cash flows provided (used in) by
financing activities 313,824 (1,838,594)
Net increase in cash and cash equivalents (397,526)
(9,221) Exchange difference and other financial results 1,135,124
2,088 Cash and cash equivalents as of January 1 88,633 30,008
Cash and cash equivalents as of September 30 826,231
22,875
F. Information about the Conference Call
There will be a conference call to discuss Central Puerto’s
third quarter 2018 results on Tuesday November 13, 2018 at 12:00
p.m. New York Time / 14:00 Buenos Aires Time.
The hosts will be Mr. Jorge Rauber, Chief Executive Officer, and
Mr. Fernando Bonnet, Chief Financial 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: 3360702
The Company will also host a live audio webcast of the
conference call on the Investor Relations section of the Company's
website at http://investors.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.
You may find additional information on the Company at:
-
http://investors.centralpuerto.com/
- www.cnv.gob.ar
- www.sec.gov
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, which generated a Ps. 7,959 million
one-time-gain accrued during the 1Q2018;
- “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;
- “TGM” refers to Transportadora de Gas
del Mercosur S.A.;
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/20181112005817/en/
Central Puerto S.AFernando BonnetChief Financial
OfficerorTomás Daghlian,(+54 11) 4317 5000 ext.2192Investor
Relations
Officerinversores@centralpuerto.comwww.centralpuerto.com
Central Puerto (NYSE:CEPU)
Gráfico Histórico do Ativo
De Jun 2024 até Jul 2024
Central Puerto (NYSE:CEPU)
Gráfico Histórico do Ativo
De Jul 2023 até Jul 2024