Since my previous publication in March, Central Puerto (NYSE: CEPU ) has gone through a key phase of strategic consolidation, marked by a profound internal transformation and a macroeconomic and regulatory environment that began to align with market logic.I am an individual investor with over five years of experience in personal investing, holding a PhD in Economics from UCEMA. My investment approach focuses on value companies with solid long-term potential. I share my knowledge with the community by offeri ...

I am a sell-side stock analyst with a focus on value investing. I report on companies of any sector that are undervalued and hold a sustainable competitive advantage.I am a graduate of Shawnee State University where I obtained my BSBA and MS in Mathematics. My work experience focuses on governmental accounting and teaching math. My IRA has increased 33.15% from May 27th, 2022 to May 25th, 2025 (based on figures provided by E*Trade).My purpose for publishing on Seeking Alpha is that I like to share my ideas ...

Central Puerto Announces Reporting Date for the First Quarter 2025 Financial Results Conference Call and WebcastApril 30, 2025 4:08 PM EDT | Source: Central Puerto S.ABuenos Aires, Argentina--(Newsfile Corp. - April 30, 2025) - Central Puerto S.A (NYSE: CEPU) ("Central Puerto" or the "Company") one of the largest private sector power generation companies in Argentina, will issue a press release announcing its First Quarter results on May 12, 2025. Mr. Fernando Bonnet, Chief Executive Officer, ...

Core Insights - Central Puerto S.A. has filed its Annual Report on Form 20-F for the fiscal year 2024 with the SEC on April 25, 2025 [1] - The report is accessible on Central Puerto's website and can be downloaded from the SEC's website [2] Company Overview - Central Puerto S.A. is one of the largest private sector power generation companies in Argentina, recognized for its installed capacity and power generation [3] - The company's asset portfolio is diversified geographically across Buenos Aires and several provinces, and technologically includes combined cycles, co-generation units, steam turbines, hydroelectric plants, wind turbines, and photovoltaic farms [3] - Central Puerto is publicly traded on both the New York and Buenos Aires stock exchanges under the ticker symbol CEPU [3]

Payment Delays and Remuneration Adjustments - CAMMESA has experienced delays in payments to generators, completing monthly payments up to 80 days after the end of the month, and occasionally as long as 101 days [1047]. - The new remuneration scheme for Spot Sales effective February 1, 2020, reduced initial power prices for thermal units by approximately 16% and adjusted payment structures based on utilization factors [1049]. - In February 2023, a new agreement was authorized for combined cycle units, requiring at least 85% availability in exchange for a new power price of 2,000 US$/MW-month plus additional remuneration [1050][1051]. - Resolution 750/23 issued in September 2023 updated the remuneration scheme with a 23% increase compared to the previous resolution [1054]. - Resolution 869/23, effective November 2023, further increased remuneration by 28% compared to Resolution 750/23 [1055]. - The remuneration for Spot Sales has seen multiple adjustments, including a retroactive 20% increase as of September 2022 and subsequent increases of 10%, 25%, and 28% in the following months [1056]. Generation Capacity and Energy Sources - In 2024, thermal generation accounted for 75,388 GWh (53.04%) of Argentina's electricity supply, while hydroelectric generation contributed 33,425 GWh (23.52%) and renewable generation contributed 22,875 GWh (16.09%) [66]. - The total installed capacity of generation facilities decreased from 43,773 MW in 2023 to 43,350 MW in 2024, a reduction of 1% or 423 MW [67]. - Renewable energy generation increased by 13.89% compared to 2023, primarily due to new wind and solar farms [66]. - Nuclear generation saw a 16.58% increase in 2024, attributed to higher availability and generation from Atucha II, which operated for a full year compared to 2023 [66]. - The hydroelectric generation registered a 15.02% decrease compared to 2023, mainly due to a reassessment of Yacyretá's power allocation between Argentina and Paraguay [66]. Acquisitions and Investments - The company has entered into steam supply contracts with YPF and T6 Industrial S.A., providing significant steam capacity for their operations [1060][1061]. - The company has diversified revenue streams through acquisitions in the forestry industry, with sales commencing in 2023 [1063]. - As of December 31, 2024, the company had an aggregate installed capacity of 6,703 MW, reflecting growth from acquisitions including Central Costanera and Guañizuil II solar farm [86]. - The company acquired 130 hectares of land in northern Buenos Aires for future potential power transmission connections [87]. - On October 18, 2023, the company acquired 100% of Cordillera Solar and Scatec Equinor Solutions Argentina S.A., enhancing its renewable energy portfolio [1090]. - The acquisition of Central Costanera on February 17, 2023, resulted in a gain from bargain purchase amounting to Ps.74.22 billion in the consolidated statement of income for the year ended December 31, 2023 [1098]. - The company recognized a gain from bargain purchase of Ps.83.97 billion from the acquisition of Empresas Verdes Argentina S.A., Las Misiones S.A., and Estancia Celina S.A. on May 3, 2023 [1100]. Financial Performance - The Group reported revenues of Ps. 738.17 billion for the year ended December 31, 2024, representing an 8.10% increase compared to Ps. 682.84 billion in 2023 [1149]. - The cost of sales decreased by 2.43% to Ps. 446.53 billion in 2024 from Ps. 457.67 billion in 2023, leading to a gross income of Ps. 291.64 billion, a 29.52% increase [1149]. - Operating income fell significantly by 73.22% to Ps. 197.20 billion in 2024 from Ps. 736.52 billion in 2023, primarily due to substantial impairment losses [1149]. - The net loss for the year was Ps. 61.25 billion, an 80.73% decrease from a net income of Ps. 317.85 billion in 2023 [1149]. - Total revenues for 2024 reached Ps. 738.17 billion, an 8.10% increase from Ps. 682.84 billion in 2023, primarily driven by higher spot sales and thermal generation [1154]. Impairment and Asset Management - An impairment loss of Ps. 36.22 billion on property, plant, and equipment was recorded for the Brigadier Lopez thermoelectric plant during 2023 [1112]. - The company estimated an impairment charge of Ps. 15.80 billion for the Brigadier Lopez thermoelectric station, with a net book value of Ps. 164.25 billion after impairment [1114]. - The estimated impairment charge for the Buenos Aires combined cycle plant at the Costanera plant was Ps. 4.77 billion, resulting in a net book value of Ps. 6.29 billion [1116]. - The Group recognized an impairment charge of Ps. 4.49 billion for the Manque wind farm and Ps. 25.28 billion for the La Genoveva wind farm, impacting the net book value of property, plant, and equipment [1117][1118]. - Impairment of property, plant, and equipment and intangible assets totaled Ps. 102.08 billion in 2024, a significant increase from a gain of Ps. 95.80 billion in 2023 [1193]. Operational Challenges and Economic Conditions - The Argentine electric power sector is under a state of emergency, extended until July 9, 2025, affecting operational strategies [68]. - The company is unable to predict the timing of new capacity auctions by the Argentine Government, impacting future expansion plans [87]. - Electric power demand is significantly influenced by economic conditions in Argentina, including inflation and energy tariffs [1064].

Editor's note: Seeking Alpha is proud to welcome Eliana Scialabba as a new contributing analyst. You can become one too! Share your best investment idea by submitting your article for review to our editors. Get published, earn money, and unlock exclusive SA Premium access.I’m an individual investor with over five years of experience in personal investing. I hold a PhD in Economics from UCEMA, a Master’s in Applied Economics from UCA, and a Bachelor’s in Economics from UBA. I’ve held key roles such as Chief ...

Group A: Company Overview and Financial Results - Central Puerto S.A. reported its consolidated financial results for FY 2024 and 4Q24, ending December 31, 2024 [1] - The company experienced a significant increase in revenues, totaling US$168 million in 4Q24, a 71% increase compared to US$98 million in 4Q23 [48] - Operating income for 4Q24 was a loss of US$38 million, down from a profit of US$202 million in 4Q23, indicating a 119% decline [47] - Adjusted EBITDA for 4Q24 was US$65 million, a 44% increase from US$45 million in 4Q23 [57] Group B: Energy Market Overview - As of December 31, 2024, Argentina's installed power generation capacity was 43,350 MW, a 1% decrease from 43,773 MW in 2023 [29] - Energy demand in 4Q24 was 33,250 GWh, slightly down from 33,258 GWh in 4Q23, with residential consumption decreasing by 1% [30] - The energy generation mix showed a 24% increase in thermal generation, while nuclear and hydro generation decreased by 48% and 30%, respectively [32] Group C: Regulatory Updates - The Secretariat of Energy issued several resolutions in 2024, including a 2.7% increase in remuneration values effective October 1, 2024, and a 6% increase effective November 1, 2024 [5][9] - A contingency plan for the electricity sector was established to ensure power availability during critical months from December 2024 to March 2026 [6] Group D: Strategic Initiatives and Projects - Central Puerto signed an agreement with the International Finance Corporation to finance feasibility studies for a power transmission line to supply energy to mining companies in northwestern Argentina [19] - The company acquired a 27.5% stake in 3C Lithium Pte. Ltd., which is developing the Tres Cruces lithium project [21] - Central Puerto increased its equity participation in AbraSilver Resource Corp to 9.9% to support the Diablillos silver-gold project [23] Group E: Financial Position and Cash Flow - As of December 31, 2024, Central Puerto had cash and cash equivalents of US$4 million and total debt of US$369 million [63] - The net cash flows provided by operating activities for the year were US$250 million, primarily driven by net income before tax [64]

Core Points - Central Puerto S.A, one of the largest private sector power generation companies in Argentina, will announce its Fourth Quarter 2024 financial results on March 11, 2025 [1] - A conference call to discuss the financial results will be hosted by the CEO, CFO, and Head of Corporate Finance on March 12, 2025, at 9:00 AM ET [1] Access Information - The conference call can be accessed via a webcast URL and will also be available for replay on the Company's website [2]

Group 1 - Central Puerto S.A. Sponsored ADR (CEPU) is a notable stock in the Oils-Energy sector, which consists of 242 individual stocks and holds a Zacks Sector Rank of 16 [2] - CEPU has a Zacks Rank of 2 (Buy), indicating a positive outlook based on earnings estimates and revisions [3] - The Zacks Consensus Estimate for CEPU's full-year earnings has increased by 38.2% in the past quarter, reflecting improved analyst sentiment [4] Group 2 - CEPU has achieved a year-to-date return of approximately 27.6%, significantly outperforming the average return of 9.1% for the Oils-Energy sector [4] - In comparison, Excelerate Energy (EE) has outperformed the sector with a year-to-date return of 80.5% and holds a Zacks Rank of 1 (Strong Buy) [5] - CEPU is part of the Alternative Energy - Other industry, which includes 44 companies and currently ranks 151 in the Zacks Industry Rank, with the industry gaining about 71.5% this year, indicating CEPU is slightly underperforming its industry [6]

Financial Data and Key Metrics Changes - Revenues for Q3 2024 amounted to US$185 million, increasing 14% year-over-year compared to Q3 2023 [12] - Adjusted EBITDA reached US$93 million, raising almost 1% versus Q3 2023 [12] - Net income for the period was US$40 million, doubling year-over-year [12] - Net debt as of September 30, 2024, amounted to US$149 million, a reduction of US$137 million compared to December 2023, showcasing a net debt to adjusted EBITDA ratio of 0.5 times [13] Business Line Data and Key Metrics Changes - Energy generation amounted to 5,685 gigawatt hours, decreasing 1% year-over-year [10][36] - Hydro energy generation dropped 35% to 1,405 gigawatt hours due to reduced water levels [37] - Wind generation decreased 4% to 386 gigawatt hours, attributed to lower wind resources and maintenance [38] - Thermal generation increased 21% to 3,832 gigawatt hours, driven by higher dispatch at various sites [39] Market Data and Key Metrics Changes - The installed capacity in Argentina reached 42,919 megawatts, a decrease of 1% year-over-year [24] - Electricity demand increased 1% to 35.6 terawatt hours compared to 35.2 terawatt hours in Q3 2023 [33] - Nuclear generation rose 7% due to higher availability of Atucha II [31] Company Strategy and Development Direction - The company is focusing on investment projects such as the San Carlos solar farm and the Brigadier Lopez combined cycle, both on schedule and budget [23] - The government is working on a new auction for hydro assets, expected to be ready by Q2 2025 [58] - The company is exploring opportunities in the mining sector, particularly in renewable energy solutions for lithium mining companies [63] Management Comments on Operating Environment and Future Outlook - Management expects higher dispatch of units during the summer due to increased demand [75] - The EBITDA forecast for the upcoming quarters is expected to remain stable unless regulatory changes occur [77] - The government is analyzing the timing for allowing thermal generation to sign private PPAs, which could impact future operations [59] Other Important Information - The company announced a dividend distribution of ARS39.47 per share [22] - A contingency plan for the electricity industry was established to mitigate critical situations from December 2024 to March 2026 [16] Q&A Session Summary Question: Regarding new auctions for hydro assets - Management confirmed that the government is working on a competitive auction scheme and aims to have it ready by Q2 2025 [58] Question: Regulatory changes for thermal generation - Management indicated that the government is promoting contractualization in the electricity market and is working on allowing private PPAs for thermal generators [59] Question: Impact of contingency plan on EBITDA - Management does not expect a significant impact on EBITDA from the contingency plan, estimating it to be less than US$10 million [67] Question: Increase in thermal power plant dispatch due to gas pipeline projects - Management stated that while there may be marginal improvements, most units are dual fuel and will continue to rely on diesel or fuel oil [70] Question: Guidance on EBITDA for the next year - Management expects EBITDA to remain stable unless regulatory changes are implemented [77]