Group 1 - Central Puerto S.A. Sponsored ADR (CEPU) is a notable stock in the Oils-Energy sector, currently outperforming the sector with a year-to-date gain of 3.6% compared to the sector average of 1.8% [4] - CEPU has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook and strong analyst sentiment, with the consensus estimate for full-year earnings increasing by 66.7% in the past quarter [3][4] - The company is part of the Alternative Energy - Other industry, which has gained an average of 20.9% this year, suggesting that CEPU is slightly underperforming its specific industry [6] Group 2 - Pedevco Corp. (PED) is another stock in the Oils-Energy sector that has outperformed, with a year-to-date increase of 23.1% and a Zacks Rank of 1 (Strong Buy) [5][7] - The Oil and Gas - Mechanical and Equipment industry, to which Pedevco belongs, has seen a modest gain of 2.3% since the beginning of the year, ranking 72 among industries [7]

Group 1 - Central Puerto reported earnings per share of 5 cents for the second quarter of 2024 [1] - The company generated revenue of $168.00 million in the same quarter [1]

Group 1 - Central Puerto S.A. Sponsored ADR (CEPU) is a notable stock in the Oils-Energy sector, currently ranked 13 in the Zacks Sector Rank among 247 individual stocks [2] - CEPU has a Zacks Rank of 1 (Strong Buy), indicating a favorable outlook based on earnings estimate revisions and improving earnings outlooks [3] - CEPU's year-to-date return is 5.5%, outperforming the average sector gain of 5.2% [4] Group 2 - The Zacks Consensus Estimate for CEPU's full-year earnings has increased by 15454.6% over the past three months, reflecting a positive trend in analyst sentiment [4] - CEPU is part of the Alternative Energy - Other industry, which has gained an average of 28.5% this year, indicating that CEPU is slightly underperforming its industry [6] - In comparison, MPLX LP, another stock in the Oils-Energy sector, has a year-to-date return of 14% and belongs to the Oil and Gas - Production and Pipelines industry, which has increased by 14.5% [5][7]

Group 1 - DBS Group Holdings Ltd (DBSDY) has seen a 7.7% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Central Puerto S.A. (CEPU) has experienced an 81.8% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Sylvamo Corporation (SLVM) has seen a 9.6% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - GE Aerospace (GE) has experienced a 4.8% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Norwegian Cruise Line Holdings Ltd. (NCLH) has seen a 2.1% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [3]

Group 1 - DBS Group Holdings Ltd (DBSDY) has a Zacks Rank 1 and its current year earnings estimate increased by 7.7% over the last 60 days [1] - DBS Group has a dividend yield of 6%, higher than the industry average of 4.4% [1] - Central Puerto S.A. (CEPU) also holds a Zacks Rank 1 with a significant earnings estimate increase of 81.8% over the last 60 days [2] - Central Puerto has a dividend yield of 2.1%, compared to the industry average of 0.0% [2] - First Financial Bankshares, Inc. (FFIN) has a Zacks Rank 1 and its current year earnings estimate increased by 2% over the last 60 days [2] - FFIN has a dividend yield of 2.1%, which is above the industry average of 0.7% [3]

Financial Data and Key Metrics Changes - The group's installed capacity is 6,703 megawatts, with energy generation amounting to 4,985 gigawatt hours, increasing 5% year-over-year [6] - Revenues for Q2 2024 amounted to $168 million, increasing 15% year-over-year, while adjusted EBITDA reached $46 million, shrinking 27% compared to Q2 2023 [8][21] - Net income for the period was $8 million, decreasing 49% year-over-year [8][23] - Net debt as of June 30, 2024, amounted to $229 million, a reduction of $58 million compared to December 2023, showcasing a net debt to adjusted EBITDA ratio of 0.9 times [8] Business Line Data and Key Metrics Changes - Hydro energy generation from Piedra del Aguila increased 94% year-over-year, reaching 978 gigawatt hours due to higher water levels [16] - Renewable energy generation increased 5% in Q2 2024, primarily due to the Guañizuil solar farm [17] - Thermal generation decreased 7% compared to Q2 2023, attributed to lower dispatch of some units [18] Market Data and Key Metrics Changes - By the end of Q2 2024, Argentina's installed capacity reached 43,603 megawatts, an increase of 0.5% year-over-year [12] - Electricity demand increased 2% to 33.4 terawatt hours compared to Q2 2023, driven by residential consumption due to weather conditions [15] Company Strategy and Development Direction - The company is interested in participating in the bidding process for the new concession period for Piedra del Aguila, which has been extended to December 2025 [26][28] - Central Puerto is exploring a transmission project to supply energy to mining companies in northern Argentina, particularly lithium mining companies [29][30] Management's Comments on Operating Environment and Future Outlook - Management noted that the regulatory environment remains challenging, particularly regarding pricing and remuneration for new concessions [28] - The company is optimistic about the potential for new renewable energy projects and the demand from mining companies [30] Other Important Information - The company reported a consolidated loss of approximately $22.5 million due to Resolution 58, but this did not affect its ordinary business operations [9] - Cash flow dynamics showed net cash provided by operating activities was $67 million for the first half of 2024 [24] Q&A Session Summary Question: Interest in privatization process for Piedra del Aguila - Management confirmed interest in participating in the bidding process for a new 30-year concession for Piedra del Aguila, emphasizing their operational advantage [26][28] Question: Details on transmission project for mining companies - Management explained the need for new transmission lines to supply energy to mining companies in northern Argentina, indicating early-stage discussions with potential partners [29][30] Question: Expected CapEx for 2024 and 2025 - Management projected CapEx of approximately $150 million for ongoing projects, with specific allocations for the San Carlos solar project and combined cycle projects [32]

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks. We should also highlight that CEPU has a P/B ratio of 0.81. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. CEPU's current P/B looks attractive when c ...

Capacity and Generation - The Puerto complex has a current installed capacity of 1,747 MW, including steam turbines and a Combined Cycle plant[4]. - The Group operates thermal generation plants with installed capacities of 865 MW, 873 MW, and 816 MW through equity investees and subsidiaries[5]. - The Costanera thermal station has an installed power capacity of 1,131 MW and two combined cycle plants with an installed power capacity of 1,128 MW[6]. - The "Parque Solar San Carlos" solar power station project, with a capacity of 10 MW, was awarded in 2022 and will be built in Salta province[24]. Energy Pricing and Remuneration - The price for energy generated from non-conventional energy sources is fixed at 28 USD/MWh[42]. - The DIGO price for energy capacity is set at 7,000 USD/MW-month during peak demand months and 5,500 USD/MW-month during the remaining months[43]. - The new remuneration component for energy generated during the first 50 hours of maximum thermal requirement (MTR) was introduced, with different prices based on the season and energy delivered[44]. - A 20% retroactive increase in power and energy remuneration values was ordered as of September 1, 2022, followed by increases of 10% on December 1, 2022, 25% on February 1, 2023, and 28% on August 1, 2023[47]. - A 23% increase in remuneration for power and energy for generation not committed under contracts was established as of September 1, 2023[77]. - A significant 74% increase in power and energy remuneration values for generation not committed under contracts was established as of February 1, 2024[78]. - Resolution No. 869/2023 established a 28% increase in remuneration for power and energy from November 1, 2023[102]. Financial Performance and Reporting - The financial statements for December 31, 2023, were restated to reflect changes in the general purchasing power of the Argentine peso, in accordance with IAS 29[85]. - The Group's consolidated financial statements are presented in Argentine pesos, rounded to the nearest thousand (ARS 000)[104]. - The most relevant revenue source for the Group is the commercialization of energy produced in the spot market, with CAMMESA as its main customer[145]. - Revenues from energy, power, and steam sales are calculated based on prices established in contracts or prevailing market prices, including unbilled amounts at the reporting period's end[146]. - The Group recognizes sales revenue based on the effective power of its machines and the energy supplied, with billing done monthly by CAMMESA[125]. Taxation and Legal Matters - The statutory tax rate for the Group for the fiscal year 2023 is detailed in Note 22[148]. - The Company collected an income tax refund of 67,612 (historical values) plus interest on March 21, 2024, related to the fiscal period 2010[155]. - As of December 31, 2023, the asset for income tax credits amounts to 156,882, down from 750,327 in 2022[187]. - The Company filed a recovery action for income tax for the fiscal year 2015, amounting to 129,231 (historical values) unduly paid[185]. - The recovery action for income tax for the fiscal year 2016 is for 189,376 (historical values) unduly paid[186]. - The Group applies significant judgment in identifying uncertainties on income tax treatment, particularly regarding inflation adjustments[154]. - The Company has ongoing legal actions regarding income tax recoveries for multiple fiscal years, including 2009, 2011, and 2012[182]. Asset Management and Impairment - The depreciation of property, plant, and equipment is calculated on a straight-line basis over their estimated useful lives, with specific rates for different asset types[193]. - The Group assesses for impairment of property, plant, and equipment and intangible assets at each reporting period-end, estimating the asset's recoverable amount if indications of impairment exist[198]. - The recoverable amount is determined as the higher of fair value less costs to sell and value-in-use, calculated for individual assets or cash-generating units (CGUs) as applicable[198]. - Fair value less costs to sell is determined using recent market transactions or appropriate valuation models, verified by valuation multiples and other fair value indicators[199]. - Impairment calculations are based on detailed budgets and forecasts prepared separately for each CGU to which individual assets are allocated[200].

Central Puerto S.A. (NYSE:CEPU) Q1 2024 Earnings Conference Call May 13, 2024 11:00 AM ET Company Participants Alejandro Díaz López - Corporate Finance & Investor Relations Coordinator Fernando Bonnet - Chief Executive Officer Enrique Terraneo - Chief Financial Officer Conference Call Participants Martin Arancet - Balanz Capital Operator Good morning, ladies and gentlemen, and welcome to Central Puerto's First Quarter 2024 Earnings Webcast. All participants will be in a listen-only mode. [Operator Instructi ...

Table of Contents La Plata Plant Sale See "Item 4. Information on the Company—Recent Developments—Acquisition of Participation Interests in Enel Generación Costanera S.A". Acquisition of Empresas Verdes Argentina S.A., Las Misiones S.A. and Estancia Celina S.A See "Item 4. Information on the Company—Recent Developments—Acquisition of Empresas Verdes Argentina S.A., Las Misiones S.A. and Estancia La Celina S.A.". Acquisition of Cordillera Solar VIII S.A. and Scatec Equinor Solutions Argentina S.A. (currently ...