Central Puerto(US:CEPU)2023-03-09 18:15Financial Data and Key Metrics Changes - In Q4 2022, revenues decreased to PEs 21.4 billion, a 22% decline from PEs 27.4 billion in Q4 2021, primarily due to a 48% decrease in sales under contracts [24][49] - Adjusted EBITDA for Q4 2022 was PEs 6.9 billion, a 61% decrease from PEs 17.7 billion in Q4 2021, driven by lower revenues and increased administrative expenses [46][47] - Consolidated net income for 2022 was PEs 19.1 billion, compared to a net loss of PEs 1.3 billion in 2021, mainly due to fair value gains on forestry acquisitions [61] Business Line Data and Key Metrics Changes - Energy generation in Q4 2022 was 35,084 gigawatt-hours, a 1% decrease from 35,534 gigawatt-hours in Q4 2021, with a 10% decrease in thermal generation and an 83% decrease in nuclear generation [11][21] - In 2022, energy generation increased 21% to 17,484 gigawatt-hours, attributed to a 23% increase in thermal generation and a 28% increase in hydro generation [23] - Steam production increased 62% in 2022, totaling 1.96 billion tons, compared to 1.21 billion tons in 2021 [4] Market Data and Key Metrics Changes - Installed capacity in the system reached 42,927 megawatts in Q4 2022, a slight decrease of 0.1% from 42,988 megawatts in Q4 2021 [20] - Energy demand increased 3% to 34,564 gigawatt-hours in Q4 2022, with residential demand growing by 4% [42] Company Strategy and Development Direction - The company is focusing on new opportunities in the energy sector and has made significant acquisitions in the forestry sector, positioning itself as a market leader [19][39] - The acquisition of Enel Generacion Costanera for $48 million is expected to reinforce growth and operational synergies [19] Management Comments on Operating Environment and Future Outlook - Management highlighted the impact of new regulations on pricing and expected EBITDA, estimating an impact of $10 million to $15 million for combined cycles [53][65] - The company anticipates recovering the revenue loss from the ending of the Brigadier Lopez TG PPA contract with a new contract expected to be finalized by Q1 2025 [45] Other Important Information - The Secretariat of Energy issued Resolution 826, which includes tariff increases for capacity power energy and energy generation, expected to positively impact revenues [17] - The company distributed dividends of PEs 2.88 per share following the ordinary general assembly on December 23, 2022 [18] Q&A Session Summary Question: What is the expected average EBITDA for the new forestry business? - Management indicated that the expected EBITDA could be affected by FX fluctuations, estimating between $10 million and $15 million for combined cycles [53][65] Question: Will the company sell wood on the spot or through contracts? - The company confirmed that it engages in both selling wood on the spot and through contracts, primarily focusing on spot sales [66] Question: What is the status of the 10 megawatt solar park construction? - Management stated that while they have land for expansion, current transmission line constraints limit immediate growth beyond 5 megawatts [57] Question: What is the updated CapEx for the Brigadier López project? - Management mentioned that a clear view of CapEx would be available in 2 to 3 months, with expectations not exceeding $140 million [69] Question: Are there any remaining payments for the forestry acquisition? - Management confirmed that the full payment for the forestry acquisition has been made, with no further payments expected in 2023 [72]