Central Puerto(US:CEPU)2022-04-27 16:00Remuneration and Pricing - From February 1, 2020, a new remuneration scheme for Energía Base was implemented, resulting in a 16% reduction in initial power prices for thermal units and a 45% reduction for hydroelectric plants[420]. - As of February 2021, remuneration prices were updated by approximately 29% under Resolution SE 440/21, impacting generation revenues[422]. - A new remuneration scheme for peak demand hours was established to mitigate fixed power prices, considering the equipment of generating companies[420]. Electricity Generation and Capacity - Electricity generation in Argentina increased by 5.7% in 2021, rising from 134,177 GWh in 2020 to 141,797 GWh in 2021[425]. - Thermal generation accounted for 64% of electricity supply in 2021, contributing 90,073 GWh, while hydroelectric generation contributed 24,116 GWh (17%)[427]. - Installed generation capacity increased from 41,951 MW in 2020 to 42,989 MW in 2021, driven by new thermal and renewable energy units[428]. - In 2021, renewable energy generation increased by 63% compared to 2019, mainly due to new wind and solar farms[427]. Financial Performance - Revenues for 2021 totaled Ps. 57.08 billion, a 0.77% decrease from Ps. 57.52 billion in 2020, primarily due to a 9.7% decrease in spot sales/Energía Base[452]. - Operating income for 2021 was Ps. 25.71 billion, a 39.04% decrease from Ps. 42.18 billion in 2020[452]. - Net loss for the year was Ps. 647.86 million, a 106.17% decrease from a net income of Ps. 10.50 billion in 2020[452]. - Finance income decreased by 75.06% to Ps. 1.94 billion in 2021, compared to Ps. 7.79 billion in 2020[452]. - Total cost of sales for the year ended December 31, 2021, was Ps. 29.56 billion, a 16.47% increase from Ps. 25.38 billion in 2020[459]. Impairment and Asset Management - An impairment loss of Ps. 4,703.1 million was recognized for the Thermal Station Brigadier López due to its book value exceeding its recoverable value[440]. - The impairment loss recognized for Nuevo Puerto combined cycle power plant was Ps. 1,025.2 million, resulting in a net book value of Ps. 4,221.9 million[442]. - Total impairment of property, plant, and equipment and intangible assets was Ps. 7.77 billion in 2021, reflecting economic uncertainties and asset value reductions[465]. Strategic Initiatives and Government Policies - The Argentine electric power sector is in a state of emergency, with a need to incorporate 10 GW of conventional and 10 GW of renewable generating capacity over the next ten years to meet increasing demand[429]. - The RenovAR Program aims for renewable energy sources to account for at least 8% of Argentina's electric power consumption by December 31, 2017, increasing to 20% by December 31, 2025[432]. - The Ministry of Energy has emphasized the need for new generating capacity to reduce reliance on imports and improve the quality of electric power supply[429]. Corporate Governance and Management - The current Board of Directors includes 10 directors and 8 alternate directors, with Osvaldo Arturo Reca serving as Chairman since April 5, 2011[153]. - The company has adopted a corporate governance code based on transparency, efficiency, ethics, and investor protection[531]. - The board's composition reflects a mix of experience in both public and private sectors, enhancing governance and strategic decision-making[516][520]. Employee and Workforce Management - As of December 31, 2021, the company had 861 employees, a decrease from 885 in 2020 and 894 in 2019, indicating a downward trend in workforce size[549]. - The company has a total of 532 employees under collective bargaining agreements (CBA) as of 2017, with 464 affiliated with unions[549]. - The company has seen fluctuations in employee numbers over the years, reflecting potential operational adjustments[549]. Debt and Financial Obligations - As of December 31, 2021, total indebtedness was Ps. 43 billion, with 100% denominated in U.S. dollars[487]. - The company has committed to maintain a leverage ratio of not more than 3.5:1.00 and an interest coverage ratio of not less than 2.00:1.00 under various loan agreements[501]. - The maximum dividend payment allowed during 2023 is US$20 million, with restrictions on dividend payments maintained until 2021[494]. Renewable Energy Projects - The company has been awarded three wind farm projects under the RenovAr Program with a total awarded electric capacity of 233.6 MW and two co-generation projects with a total awarded electric capacity of 647 MW[508]. - The Terminal 6 San Lorenzo cogeneration project commenced operations on August 15, 2021, after delays originally scheduled for September 2020[511]. - The company has entered into long-term PPA contracts for 100% of the estimated energy generation capacity of its renewable energy projects developed under Resolution No. 281-E/17[508].