Central Puerto(US:CEPU)2022-11-10 21:17Financial Data and Key Metrics Changes - Revenues decreased by 17% to Ps.20.3 billion compared to Ps.24.3 billion in Q3 2021, primarily due to a 35% decrease in certain sales and a 2% decrease in sales and contracts [16][23] - Consolidated net income was Ps.4.5 billion in Q3 2022, down from Ps.4.9 billion in the same period of 2021 [23] - Adjusted EBITDA increased by 42% to Ps.20.7 billion in Q3 2022 compared to Ps.14.6 billion in Q3 2021 [19][23] Business Line Data and Key Metrics Changes - Energy generation decreased by 10% to 33,452 gigawatts in Q3 2022 compared to 37,059 gigawatts in Q3 2021, with a 21% decrease in thermal generation and a 19% decrease in nuclear generation [10][11] - The main sources of energy generation were thermal (57%) and hydro (22%), while renewables accounted for 14% and nuclear for 7% [11] Market Data and Key Metrics Changes - Installed capacity in the system reached 42,899 megawatts, a 1% increase from 42,589 megawatts in Q3 2021, with 59% thermal, 25% hydro, 12% renewable, and 4% nuclear [9] - Energy demand increased by 1% to 34,730 kilowatts compared to 34,454 kilowatts in Q3 2021, with commercial demand growing by 5% and residential demand decreasing by 1% [12] Company Strategy and Development Direction - The company is negotiating with an engineering firm to complete the combined cycle power plant at Brigadier López, with expected completion between 22 to 24 months after contract closure [34][38] - The Board of Directors approved the acquisition of shares, indicating a focus on shareholder value [7] - The company aims to broaden its business scope beyond energy generation to include industries such as mining, forestry, and agriculture [8] Management's Comments on Operating Environment and Future Outlook - Management is in discussions with the government regarding the extension of concessions for hydroelectric power plants, with a decision expected early next year [33] - There is an expectation for an increase in energy asset prices this year, with plans to set a path for future increases to keep up with inflation [40][41] - The company is analyzing the possibility of paying dividends next year, indicating positive cash flow generation [41] Other Important Information - The company received a rating upgrade from Category A+ to AA- with a stable outlook, reflecting improved credit quality [6] - The financial figures are stated in Argentinian pesos and include inflation adjustments [2] Q&A Session Summary Question: Updates on hydroelectric power plant concessions - Management is in discussions with the government regarding the concession of Piedra del Águila, with no concrete information available yet [33] Question: Status of the Brigadier Lopez project - Management is working with an EPC provider to close the cycle, expecting to finalize the contract by early next year, with completion anticipated in 22 to 24 months [34][38] Question: Maintenance and remuneration for combined cycle plants - Management is discussing additional remuneration for maintenance with the government, particularly for combined cycle plants reaching their lifetime limits [38][39] Question: Consideration of paying dividends next year - Management confirmed that paying dividends is under analysis and is a possibility due to positive cash flow generation [41]