Central Puerto(CEPU) - 2019 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Revenues increased by 52% to Ps. 11.4 billion in Q4 2019 compared to Ps. 7.5 billion in Q4 2018, driven by increased sales under contracts and contributions from new plants [18][24] - Adjusted EBITDA rose to approximately Ps. 4.2 billion in Q4 2019, up from Ps. 2.9 billion in Q4 2018, reflecting a 22% increase in gross profit [22][24] - Consolidated net income was Ps. 1.3 billion in Q4 2019, compared to Ps. 1 billion in Q4 2018, impacted by higher financial expenses [23] Business Line Data and Key Metrics Changes - Energy generation during Q4 2019 was 4.1 terawatt hours, an 18% increase from Q4 2018, attributed to a 17% rise in hydro generation and renewable units [12] - Thermal unit generation increased by 46%, benefiting from new wind farms and the Brigadier López plant [13] Market Data and Key Metrics Changes - The company reported a 92% availability rate for thermal units, 3 percentage points higher than Q4 2018, indicating a competitive advantage [15] - 100% of energy from new projects has been contracted directly with large users at prices set in U.S. dollars [14] Company Strategy and Development Direction - The company expanded its installed capacity by 12% in 2019, including thermal and renewable energy projects [7] - Ongoing projects include the Terminal 6 and Lorenzo Project II, expected to add 330 megawatts, with a completion date set for September 2020 [9] - The company is also focusing on renewable energy projects, with the La Genoveva I wind farm expected to add 88 megawatts [11] Management Comments on Operating Environment and Future Outlook - Management highlighted potential delays in project timelines due to the coronavirus outbreak affecting suppliers [11] - The company anticipates a reduction in legacy EBITDA of 15% due to regulatory changes impacting pricing structures [27] Other Important Information - The financial statements for 2019 include inflation adjustments per International Accounting Standard number 29, affecting comparability with previous periods [17] - The company reported net cash provided by operating activities of Ps. 11.9 billion in 2019, with significant cash flow from financial activities related to expansion projects [25] Q&A Session Summary Question: Clarification on EBITDA impact - Frank McGann inquired about the mention of a 40% to 50% reduction, which referred to the impact on Energía Base EBITDA, estimated at around $38 million [30]