Central Puerto(US:CEPU)2025-04-25 16:38Payment 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].