Central Puerto(US:CEPU)2024-11-11 20:42Financial Data and Key Metrics Changes - Revenues for Q3 2024 amounted to US$185 million, increasing 14% year-over-year compared to Q3 2023 [12] - Adjusted EBITDA reached US$93 million, raising almost 1% versus Q3 2023 [12] - Net income for the period was US$40 million, doubling year-over-year [12] - Net debt as of September 30, 2024, amounted to US$149 million, a reduction of US$137 million compared to December 2023, showcasing a net debt to adjusted EBITDA ratio of 0.5 times [13] Business Line Data and Key Metrics Changes - Energy generation amounted to 5,685 gigawatt hours, decreasing 1% year-over-year [10][36] - Hydro energy generation dropped 35% to 1,405 gigawatt hours due to reduced water levels [37] - Wind generation decreased 4% to 386 gigawatt hours, attributed to lower wind resources and maintenance [38] - Thermal generation increased 21% to 3,832 gigawatt hours, driven by higher dispatch at various sites [39] Market Data and Key Metrics Changes - The installed capacity in Argentina reached 42,919 megawatts, a decrease of 1% year-over-year [24] - Electricity demand increased 1% to 35.6 terawatt hours compared to 35.2 terawatt hours in Q3 2023 [33] - Nuclear generation rose 7% due to higher availability of Atucha II [31] Company Strategy and Development Direction - The company is focusing on investment projects such as the San Carlos solar farm and the Brigadier Lopez combined cycle, both on schedule and budget [23] - The government is working on a new auction for hydro assets, expected to be ready by Q2 2025 [58] - The company is exploring opportunities in the mining sector, particularly in renewable energy solutions for lithium mining companies [63] Management Comments on Operating Environment and Future Outlook - Management expects higher dispatch of units during the summer due to increased demand [75] - The EBITDA forecast for the upcoming quarters is expected to remain stable unless regulatory changes occur [77] - The government is analyzing the timing for allowing thermal generation to sign private PPAs, which could impact future operations [59] Other Important Information - The company announced a dividend distribution of ARS39.47 per share [22] - A contingency plan for the electricity industry was established to mitigate critical situations from December 2024 to March 2026 [16] Q&A Session Summary Question: Regarding new auctions for hydro assets - Management confirmed that the government is working on a competitive auction scheme and aims to have it ready by Q2 2025 [58] Question: Regulatory changes for thermal generation - Management indicated that the government is promoting contractualization in the electricity market and is working on allowing private PPAs for thermal generators [59] Question: Impact of contingency plan on EBITDA - Management does not expect a significant impact on EBITDA from the contingency plan, estimating it to be less than US$10 million [67] Question: Increase in thermal power plant dispatch due to gas pipeline projects - Management stated that while there may be marginal improvements, most units are dual fuel and will continue to rely on diesel or fuel oil [70] Question: Guidance on EBITDA for the next year - Management expects EBITDA to remain stable unless regulatory changes are implemented [77]