Central Puerto(US:CEPU)2024-08-12 18:09Financial 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]