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]

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 ...