NOTE: Exchange rates quoted by the Banco de la Nación Argentina are provided only as a reference. The average exchange rate refers to the average of the daily exchange rates quoted by the Banco de la Nación Argentina for wire transfers
(divisas) for each period.
2. See “Disclaimer-Adjusted EBITDA” below for further information.
Adjusted EBITDA Reconciliation
Million Ps.
|
|
2Q
2019
|
|
1Q
2019
|
|
2Q
2018
|
|
Var %
(2Q/2Q)
|
|
1H
2019
|
|
1H
2018
|
|
Var%
|
Consolidated Net income for the period
2
|
|
1,352
|
|
1,347
|
|
4757
|
|
(72%)
|
|
2,699
|
|
16,693
|
|
(84%)
|
Loss on net monetary position
|
|
1,180
|
|
1,461
|
|
769
|
|
54%
|
|
2,641
|
|
1,108
|
|
138%
|
Financial expenses
|
|
589
|
|
1,614
|
|
2,192
|
|
(73%)
|
|
2,203
|
|
2,928
|
|
(25%)
|
Financial income
|
|
(556)
|
|
(419)
|
|
(1,385)
|
|
(60%)
|
|
(975)
|
|
(1,675)
|
|
(42%)
|
Share of the profit of an associate
|
|
(239)
|
|
(106)
|
|
(484)
|
|
(51%)
|
|
(345)
|
|
(663)
|
|
(48%)
|
Income tax expenses
|
|
500
|
|
1,593
|
|
2,640
|
|
(81%)
|
|
2,093
|
|
5,929
|
|
(65%)
|
Net income of discontinued operations
|
|
0
|
|
-
|
|
0
|
|
N/A
|
|
-
|
|
(338)
|
|
(100%)
|
Depreciation and amortization
|
|
342
|
|
527
|
|
397
|
|
(14%)
|
|
868
|
|
757
|
|
15%
|
Adjusted EBITDA
1,2
|
|
3,167
|
|
6,017
|
|
8,886
|
|
(64%)
|
|
9,184
|
|
24,739
|
|
(63%)
|
1. Include, among others, the following concepts:
|
|
|
|
|
|
|
|
|
|
|
|
13,485
|
|
|
|
|
377
|
|
3,203
|
|
7,097
|
|
(95%)
|
|
3,580
|
|
7,201
|
|
(50%)
|
See “CVO effect” below for further information.
2. See “Disclaimer-Adjusted EBITDA” below for further information.
|
2Q 2019 Results Analysis
Revenues from continuing operations increased 74% to Ps. 5,819 million in the 2Q2019
, as compared to Ps. 3,350 million in the 2Q2018. The increase in revenues was mainly driven by:
-
an increase in the energy generated during the 2Q2019 of 4%, as compared to the 2Q2018, and 13 percentage points increase in the availability of the thermal units under Energía Base, which was 92% during 2Q2019, as compared to 79% during
the 2Q2018,
-
an increase in the exchange rates for the 2Q2019, higher than the inflation for the period, which impacted tariffs set in US dollars, in terms of argentine pesos current at the end of the reporting period. As a reference, the average
foreign exchange rate during 2Q2019 increased 87% compared to 2Q2018, while the inflation rate for the twelve-month period ended on June 30, 2019, was 56%,
-
an increase in the fuel remuneration for units under Energía Base regulatory framework (and other related concepts), which amounted to Ps. 1,784 million during the 2Q2019, mainly because of income in accordance to Res. 70/18, in some of
the units under the Energía Base regulatory framework (see “—Factors Affecting Our Results of Operations—Our Revenues—The Energía Base”), compared to Ps. 202 million during the 2Q2018,
-
a 445% increase in the Sales under contracts, which amounted to Ps. 546 million during the 2Q2019, as compared to Ps. 100 million in the 2Q2018, mainly due to the energy generation of wind farms Achiras and La Castellana, which started
operation during the 3Q2018, and the revenues related to the recently acquired Brigadier López Plant accrued during June 2019 (see Section A. Highlights for more information) which amounted Ps. 344 million.
This was partially offset by the decrease in energy and power prices for units under the Energy Base Regulatory framework established by Res. 1/19, starting on March 1, 2019. As a reference, the new tariffs are:
Items
|
Thermal
|
Hydro
|
Power capacity
payments Res.
1/19
1
|
Up to US$ 7,000 per MW per month
during December, January, February, June, July and August
Up to US$ 5,500 per MW per month
during March, April, May, September, October and
November
These prices, are multiplied by a percentage, which depends
on the average Utilization Factor (UF) of each unit during
the previous last twelve months (mobile year):
-
If UF<30%,
unit receives
70% of the price
|
US$ 3,000 per
MW per month
|
Energy payments
Res. 1/19
2
|
US$ 5.4 per MWh for generation with natural gas
US$ 8.4 per MWh for generation with fuel oil/gas oil
|
US$ 4.9 per
MWh
|
1
Effective prices for capacity payment depended on the availability of each unit, and the achievement of the Guaranteed Bid Capacity (DIGO in Spanish) that each generator may send to CAMMESA twice a year. For further details,
see “Item 4.B. Business Overview—The Argentine Electric Power Sector—Remuneration Scheme—The Current Remuneration Scheme” in the annual report on Form 20-F filed with the SEC on April 30, 2019.
2
Energy payments above mentioned includes the tariffs for energy generated and energy operated as mentioned in Res. SRRyME 1/2019.
Gross profit increased 64% to Ps. 2,541 million,
compared to Ps. 1,551 million in 2Q2018. This increase was due to (i) the above-mentioned increase in revenues, which was partially offset by an increase in costs of sales that
totaled Ps. 3,278 million, a 82% increase as compared to Ps. 1,799 million in the 2Q2018. The increase in the cost of sales was primarily driven by:
-
An increase in the purchase of fuel (and related concepts) used in our units that sell steam, or electricity under contracts or Energía Base (when applicable), which totaled Ps. 1,822 million during the 2Q2019, as compared to Ps. 445
million in the 2Q2018, due to:
-
The cost of the self-supplied fuel purchased in accordance to Res. 70/18 described above;
-
a higher price of natural gas used in the units that generate steam or electric energy under the Energía Plus framework, mainly due an increase in the exchange rate for 2Q2019 as compared to 2Q2018, which was higher than the
inflation between this periods, which impacted in the US dollars denominated price of natural gas, in terms of argentine pesos current at the end of the reporting period. As a reference, the average foreign exchange rate during 2Q2019
increase 87% compared to 2Q2018, while the inflation rate for the twelve-month period ended on June 30, 2019 was 56%,
-
a 8% increase in non-fuel-related costs of production, which totaled Ps. 1,456 million in the 2Q2019, as compared to Ps. 1,355 million in the 2Q2018, mainly due to (i) a Ps. 69 million increase in compensation for employees, and a (ii)
Ps. 106 million increase in maintenance costs, which was partially offset by Ps. 53 million decrease in fees and compensations for services.
Gross Profit Margin totaled 44% during 2Q2019, as compared to 46% in the 2Q2018. This change was mainly related to the effect of Res. 70/18, which increased both the income and the cost of energy production from thermal units.
Operating income before other operating results, net, increased 86% to Ps. 2,120 million,
compared to Ps. 1,142 million in the 2Q2018. This increase was due to (i) the above-mentioned increase in gross profits, and (ii) a
less-than-proportional increase in administrative and selling expenses that totaled Ps. 421 million, a 3% increase as compared to Ps. 409 million in the 2Q2018. This increase was mainly driven by (i) a 38% increase in taxes on bank account
transactions, due to increased revenues, costs and the acquisition of the Brigadier López Plant, among others.
Adjusted EBITDA was Ps. 3,167 million in the 2Q2019
, compared to Ps. 8,886 million in the 2Q2018. This variation was mainly due to (i) a loss of Ps. 701 million during the 2Q2019, from the foreign exchange difference on operating
assets (mainly the FONI trade receivables), compared to a gain of 7,097 million during the 2Q2019; which was partially offset by (ii) the increase in operating results before other operating income, net mentioned above, and (iii) Ps. 1,449
million during the 2Q2019, as compared to Ps. 345 million from interest accrued on the trade receivables denominated in US dollars, mainly related to the FONI program.
Consolidated Net income was Ps. 1,352 million and Net income for shareholder was Ps. 1,158 million or Ps. 0.77 per share, in the 2Q2019
, compared to Ps. 4,757 million and 5,066 million, respectively, or Ps. 3.37 per share, in the
2Q2018. In addition to the above-mentioned factors, net income was (i) positively impacted by lower financial expenses that amounted to Ps. 589 million in the 2Q2019, compared to Ps. 2,192 million in the 2Q2018, and (ii) negatively impacted
by lower financial income which amounted to Ps. 556 million during the 2Q2019, compared to Ps. 1,385 million in the 2Q2018, in each case under (i) and (ii), mainly due to the lower foreign exchange difference over US dollar denominated debt
and financial assets (which excludes FONI and other trade receivables). Additionally, and the results from the share of profit of associates decreased to Ps. 239 million in the 2Q2019, as compared to Ps. 484 million in the 2Q2018, mainly due
to weaker results from the operations of Ecogas.
Finally, loss from exposure to the change in the purchasing power of the currency totaled Ps. 1,180 million during the 2Q2019, as compared to Ps. 769 million in the 2Q2018.
FONI collections totaled Ps. 3,041 million in the 2Q2019,
-including VAT- (approximately equivalent to US$ 72 million, at the exchange rate as of June 30, 2019), associated to the FONI trade receivables for San Martín, Manuel
Belgrano, and Vuelta de Obligado Plants, including a portion of the amounts related to the installments 1 to 10 (See section A. Highlights above for more information).
1H2018 Results Analysis
Revenues from continuing operations increased 95% to Ps. 12,648 million in the 1H2019
, as compared to Ps. 6,483 million in the 1H2018. The increase in revenues was mainly driven by:
-
an increase in the energy generated during the 1H2019 of 17%, as compared to the 1H2018, and 8 percentage points increase in the availability of the thermal units under Energía Base, which was 92% during 2Q2019, as compared to 84% during
the 2Q2018,
-
an increase in the exchange rates for the 1H2019, higher than the inflation for the period, which impacted tariffs set in US dollars, in terms of argentine pesos current at the end of the reporting period. As a reference, the average
foreign exchange rate during 1H2019 increased 103% compared to 1H2018, while the inflation rate for the twelve-month period ended on June 30, 2019 was 56%,
-
an increase in the fuel remuneration for units under Energía Base regulatory framework (and other related concepts), which amounted to Ps. 4,554 million during the 1H2019, mainly due to the income in accordance to Res. 70/18, in some of
the units under the Energía Base regulatory framework (see “—Factors Affecting Our Results of Operations—Our Revenues—The Energía Base”), compared to Ps. 202 million during the 1H2018,
-
a 490% increase in the Sales under contracts, which amounted to 1,112 million during the 1H2019, as compared to Ps. 189 million in the 1H2018, mainly due to the energy generation of wind farms Achiras and La Castellana, which started
operation during the 3Q2018, and the revenues related to the recently acquired Brigadier López Plant accrued during June 2019 (see Section A. Highlights for more information) which amounted Ps. 344 million.
This was partially offset by the decrease in energy and power prices for units under the Energy Base Regulatory framework established by Res. 1/19, starting on March 1, 2019.
Gross profit increased 69% to Ps. 5,363 million,
compared to Ps. 3,166 million in 1H2018. This increase was due to (i) the above-mentioned increase in revenues, which was partially offset by an increase in costs of sales that
totaled Ps. 7,285 million, a 120% increase as compared to Ps. 3,317 million in the 1H2018. The increase in the cost of sales was primarily driven by:
-
An increase in the purchase of fuel (and related concepts) used in our units that sell steam, or electricity under contracts or Energía Base (when applicable), which totaled Ps. 4,293 million during the 1H2019, as compared to Ps. 821
million in the 1H2018, due to:
-
The cost of the self-supplied fuel purchased in accordance to Res. 70/18 described above;
-
a higher price of natural gas used in the units that generate steam or electric energy under the Energía Plus framework, mainly due an increase in the exchange rate for 1H2019 as compared to 1H2018, that was higher than the inflation
between this periods, which impacted in the US dollars denominated price of natural gas, in terms of argentine pesos current at the end of the reporting period. As a reference, the average foreign exchange rate during 1H2019 increased
103% compared to 1H2018, while the inflation rate for the twelve-month period ended on June 30, 2019 was 56%,
-
a 20% increase in non-fuel-related costs of production, which totaled Ps. 2,992 million in the 1H2019, as compared to Ps. 2,496 million in the 1H2018, mainly due to (i) a Ps. 146 million increase in compensation for employees, a (ii) Ps.
176 million increase in maintenance costs, (iii) a Ps. 91 million increase in depreciation related to the expansion in property, plants and equipment.
Gross Profit Margin totaled 42% during 1H2019, as compared to 49% in the 1H2018. This change was mainly related to the effect of Res. 70/18, which increased both the income and the cost of energy production from thermal units.
Operating income before other operating results, net, increased 85% to Ps. 4,444 million,
compared to Ps. 2,407 million in the 1H2018. This increase was due to (i) the above-mentioned increase in gross profits, and (ii) a
less-than-proportional increase in administrative and selling expenses that totaled Ps. 918 million, a 21% increase as compared to Ps. 760 million in the 1H2018. This increase was mainly driven by (i) a 49% increase in taxes on bank account
transactions, due to increased revenues, costs and the acquisition of the Brigadier López Plant, among others.
Adjusted EBITDA was Ps. 9,184 million in the 1H2019
, compared to Ps. 24,739 million in the 1H2018 which included a Ps. 13,485 million gain during the 1H2018 from a one-time-gain from the CVO Commercial Operation Approval (the “CVO
effect”). Without taking into account this extraordinary gain, the decrease would have been 18%. This variation was mainly due to a (iii) Ps. 1,788 million gain during the 1H2019, as compared to Ps. 507 million from interest accrued, and (ii)
Ps. 2,154 million gain during the 1H2019, as compared to Ps. 7,484 million from the foreign exchange difference, in both cases (i) and (ii) on the trade receivables denominated in US dollars mainly related to the FONI program, which was
partially offset by, (iii) the increase in operating results before other operating income, net mentioned above.
Consolidated Net income was Ps. 2,699 million and Net income for shareholder was Ps. 2,538 million or Ps. 1.69 per share, in the 1H2019
, compared to Ps. 16,693 million and 17,076 million, respectively, or Ps. 11.34 per share, in the
1H2018, which included a Ps. 13,485 million gain – before income tax- accrued during the 1H2018 from a one-time-gain from the CVO Commercial Operation Approval (the “CVO effect”). In addition to the above-mentioned factors, net income was (i)
positively impacted by lower financial expenses that amounted to Ps. 2,203 million in the 1H2019, compared to Ps. 2,928 million in the 1H2018, and (ii) negatively impacted by lower financial income which amounted to Ps. 975 million during the
2Q2019, compared to Ps. 1,675 million in the 1H2018, in each case under (i) and (ii), mainly due to the lower foreign exchange difference over US dollar denominated debt and financial assets (which excludes FONI and other trade receivables).
Additionally, and the results from the share of profit of associates decreased to Ps. 345 million in the 1H2019, as compared to Ps. 663 million in the 1H2018, mainly due to weaker results from the operations of Ecogas.
Finally, loss from exposure to the change in the purchasing power of the currency totaled Ps. 2,641 million during the 1H2019, as compared to Ps. 1,108 million in the 1H2018.
FONI collections totaled Ps. 4,377 million in the 1H2019,
-including VAT- (approximately equivalent to US$ 103 million, at the exchange rate as of June 30, 2019), associated to the FONI trade receivables for San Martín, Manuel
Belgrano, and Vuelta de Obligado Plants, including a portion of the amounts related to the installments 1 to 10 (See section A. Highlights above for more information).
Financial Situation
As of June 30, 2019, the Company and its subsidiaries had Cash and Cash Equivalents of Ps. 812 million, and Other Current Financial Assets of Ps. 2,001 million.
Loans and borrowings were received to finance the expansion of the current installed capacity, which includes the construction of the Luján de Cuyo thermal project, and the wind farms La Castellana I, Achiras and La Castellana II, and the
acquisition of the Brigadier López Plant. For more information regarding each financing, please see Section “A. Highlights”.
Million Ps.
|
|
As of
June 30, 2019
|
Cash and cash equivalents (Central Puerto S.A. stand-alone)
|
|
441
|
Other financial assets (Central Puerto S.A. stand-alone)
|
|
1,731
|
Financial Debt (Central Puerto S.A. stand-alone)
|
|
(15,870)
|
|
|
|
Composed of:
|
|
|
Financial Debt (current) (Central Puerto S.A. stand-alone)
|
(2,693)
|
|
Financial Debt (non-current) (Central Puerto S.A. stand-alone)
|
(13,177)
|
|
Subtotal Individual Net Cash Position
|
|
(13,698)
|
Cash and cash equivalents of subsidiaries
|
|
371
|
Other financial assets of subsidiaries
|
|
271
|
Financial Debt of subsidiaries
Composed of:
|
|
(6,911)
|
Financial Debt of subsidiaries (current)
|
(619)
|
|
Financial Debt of subsidiaries (non-current)
|
(6,293)
|
|
Subtotal Subsidiaries Net Cash Position
|
|
(6,270)
|
Consolidated Net Debt
|
|
(19,968)
|
|
|
|
|
Cash Flows of the 1H2019
Million Ps.
|
1H2019
ended June 30, 2019
|
Cash and Cash equivalents at the beginning
|
281
|
Net cash flows provided by operating activities
|
2,612
|
Net cash flows used in investing activities
|
(11,742)
|
Net cash flows used in financing activities
|
9,563
|
Exchange difference and other financial results
|
6
|
Loss on net monetary position by cash and cash
equivalents
|
90
|
Cash and Cash equivalents at the end
|
812
|
Net cash provided by operating activities was Ps. 2,612 million during the 1H2019
. This cash flow arises from (i) Ps. 8,316 million from the operating income from continuing operations obtained during the 1H2019, (ii) Ps. 6,554
million due to a decrease in the stock of trade receivables, mainly related to the collections of FONI, (iii) Ps. 1,699 million in collection of interests from clients, including the ones from FONI, during the period,
minus
(iv) the
non-cash items included in the operating income, including Ps. 2,154 million from foreign exchange difference; and (v) Ps. 6,132 million from income tax paid.
Net cash used in investing activities was Ps. 11,742 million in the 1H2019
. This amount was mainly due to (i) Ps. 5,595 million payments in payments for the purchase of property, plant and equipment for the construction of the
renewable and thermal projects, and (ii) Ps. 6,737 million for the purchase of the Brigadier López Plant. This was partially offset by (i) Ps. 496 million obtained by the sale of short-term financial assets, net.
Net cash provided by financing activities was Ps. 9,563 million in the 1H2019
. This amount was the result of Ps. 10,375 million in loan received related to the expansion projects mentioned above (see Section A. Highlights) mainly
related to the acquisition of the Brigadier López Plant, which was partially offset by interest and financial expenses paid, related to the loans received for the expansion projects, for a net amount of Ps. 1,154 million.
E. Tables
a. Consolidated Statement of Income
|
2Q 2019
|
|
2Q 2018
|
|
|
Unaudited
|
|
Unaudited
|
|
|
Thousand Ps.
|
|
Thousand Ps.
|
|
|
|
|
|
|
Revenues
|
5,819,232
|
|
3,350,169
|
|
Cost of sales
|
(3,278,035)
|
|
(1,799,331)
|
|
Gross income
|
2,541,197
|
|
1,550,838
|
|
|
|
|
|
|
Administrative and selling expenses
|
(420,721)
|
|
(409,329)
|
|
Other operating income
|
748,582
|
|
7,436,146
|
|
Operating income
|
2,825,369
|
|
8,489,569
|
|
|
|
|
|
|
Loss on net monetary position
|
(1,180,397)
|
|
(768,556)
|
|
Finance income
|
556,133
|
|
1,384,950
|
|
Finance expenses
|
(588,631)
|
|
(2,192,066)
|
|
Share of the profit of associates
|
239,147
|
|
483,550
|
|
Income before income tax form continuing operations
|
1,851,621
|
|
7,397,447
|
|
Income tax for the period
|
(499,579)
|
|
(2,640,386)
|
|
Net income for the period from continuing operations
|
1,352,042
|
|
4,757,061
|
|
Discontinued operations
|
|
|
|
|
Net income after tax for the period from discontinued operations
|
-
|
|
-
|
|
Net income for the period
|
1,352,042
|
|
4,757,061
|
|
|
|
|
|
|
Attributable to:
|
|
|
|
|
-Equity holders of the parent
|
1,158,508
|
|
5,066,891
|
|
-Non-controlling interests
|
193,534
|
|
(309,830)
|
|
|
1,352,042
|
|
4,757,061
|
|
|
|
|
|
|
Earnings per share:
|
|
|
|
|
Basic and diluted (Ps.)
|
0.77
|
|
3.37
|
|
Earnings per share from continuing operations:
|
|
|
|
|
Basic and diluted (ARS)
|
0.77
|
|
3.37
|
|
|
1H 2019
|
|
1H 2018
|
|
|
Unaudited
|
|
Unaudited
|
|
|
Thousand Ps.
|
|
Thousand Ps.
|
|
|
|
|
|
|
Revenues
|
12,647,847
|
|
6,483,290
|
|
Cost of sales
|
(7,285,180)
|
|
(3,316,960)
|
|
Gross income
|
5,362,667
|
|
3,166,330
|
|
|
|
|
|
|
Administrative and selling expenses
|
(918,486)
|
|
(759,657)
|
|
Other operating income
|
3,942,545
|
|
8,213,452
|
|
Other operating expenses
CVO receivables update
|
(71,196)
|
|
(123,586)
13,485,342
|
|
-
|
Operating income
|
8,315,530
|
|
23,981,881
|
|
|
|
|
|
|
Loss on net monetary position
|
(2,640,986)
|
|
(1,107,911)
|
|
Finance income
|
974,861
|
|
1,674,760
|
|
Finance expenses
|
(2,202,742)
|
|
(2,928,168)
|
|
Share of the profit of associates
|
345,005
|
|
663,139
|
|
Income before income tax form continuing operations
|
4,791,668
|
|
22,283,701
|
|
Income tax for the period
|
(2,092,719)
|
|
(5,928,863)
|
|
Net income for the period from continuing operations
|
2,698,949
|
|
16,354,838
|
|
Discontinued operations
|
|
|
|
|
Net income for the period after tax from discontinued operations
|
-
|
|
338,055
|
|
Net income for the period
|
2,698,949
|
|
16,692,893
|
|
|
|
|
|
|
Attributable to:
|
|
|
|
|
-Equity holders of the parent
|
2,538,352
|
|
17.075,995
|
|
-Non-controlling interests
|
160,597
|
|
(383,102)
|
|
|
2,698,949
|
|
16.692,893
|
|
|
|
|
|
|
Earnings per share:
|
|
|
|
|
Basic and diluted (Ps.)
|
1.69
|
|
11.34
|
|
Earnings per share from continuing operations:
|
|
|
|
|
Basic and diluted (ARS)
|
1.69
|
|
11.12
|
|
b. Consolidated Statement of Financial Position
|
|
As of June 30,
2019
|
|
As of December 31,
2018
|
|
|
Unaudited
|
|
Audited
|
|
|
Thousand Ps.
|
|
Thousand Ps.
|
Assets
|
|
|
|
|
Non-current assets
|
|
|
|
|
Property, plant and equipment
|
|
46,137,428
|
|
27,623,777
|
Intangible assets
|
|
2,521,048
|
|
2,735,844
|
Investment in associates
|
|
2,699,274
|
|
2,446,057
|
Trade and other receivables
|
|
18,543,174
|
|
20,406,830
|
Other non-financial assets
|
|
474,706
|
|
272,907
|
Inventories
|
|
93,442
|
|
91,420
|
|
|
70,469,072
|
|
53,576,835
|
Current assets
|
|
|
|
|
Inventories
|
|
334,285
|
|
270,387
|
Other non-financial assets
|
|
274,849
|
|
606,062
|
Trade and other receivables
|
|
10,354,555
|
|
12,949,226
|
Other financial assets
|
|
2,001,169
|
|
2,404,798
|
Cash and cash equivalents
|
|
811,641
|
|
281,467
|
|
|
13,776,499
|
|
16,511,940
|
Total assets
|
|
84,245,571
|
|
70,088,775
|
|
|
|
|
|
Equity and liabilities
|
|
|
|
|
Equity
|
|
|
|
|
Capital stock
|
|
1,514,022
|
|
1,514,022
|
Adjustment to capital stock
|
|
14,344,934
|
|
14,344,934
|
Legal
|
|
1,892,764
|
|
469,291
|
Voluntary reserve
|
|
21,982,212
|
|
5,393,490
|
Retained earnings
|
|
2,538,352
|
|
18,012,195
|
Equity attributable to shareholders of the parent
|
|
42,272,284
|
|
39,733,932
|
Non-controlling interests
|
|
880,872
|
|
572,457
|
Total Equity
|
|
43,153,156
|
|
40,306,389
|
|
|
|
|
|
Non-current liabilities
|
|
|
|
|
Other non-financial liabilities
|
|
3,328,954
|
|
2,397,765
|
Other loans and borrowings
|
|
19,469,564
|
|
6,369,977
|
Borrowings from CAMMESA
|
|
1,175,585
|
|
1,229,315
|
Compensation and employee benefits liabilities
|
|
152,894
|
|
181,734
|
Deferred income tax liabilities
|
|
5,471,376
|
|
5,867,388
|
|
|
29,598,373
|
16,046,179
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
Trade and other payables
|
|
3,259,646
|
2,117,490
|
Other non-financial liabilities
|
|
1,247,311
|
2,033,073
|
Borrowings from CAMMESA
|
|
1,919,431
|
2,219,087
|
Other loans and borrowings
|
|
3,311,578
|
823,377
|
Compensation and employee benefits liabilities
|
|
389,123
|
478,808
|
Income tax payable
|
|
773,970
|
5,406,449
|
Provisions
|
|
592,983
|
657,923
|
|
|
11,494,042
|
13,736,207
|
Total liabilities
|
|
41,092,415
|
29,782,386
|
Total equity and liabilities
|
|
84,245,571
|
70,088,775
|
|
|
|
|
|
|
|
|
|
c. Consolidated Statement of Cash Flow
|
1H 2019
|
|
1H 2018
|
|
Unaudited
|
|
Unaudited
|
|
Thousand Ps.
|
|
Thousand Ps.
|
Operating activities
|
|
|
|
Income for the period before income tax from continuing
operations
|
4,791,668
|
|
22,283,701
|
Income for the period before income tax from
discontinued operations
|
-
|
|
402,485
|
Income for the period before income tax
|
4,791,668
|
|
22,686,186
|
|
|
|
|
Adjustments to reconcile income for the period before
income tax to net cash flows:
|
|
|
|
Depreciation of property, plant and equipment
|
646,773
|
|
554,966
|
Net results from replacement or decreases of property
plants and equipment
|
-
|
|
66,487
|
Amortization of intangible assets
|
221,604
|
|
201,710
|
Discount of trade and other receivables and payables, net
|
27
|
|
(1,044)
|
CVO receivables update
|
-
|
|
(13,485,342)
|
Interest earned from customers
|
(1,788,213)
|
|
(506,692)
|
Financial income
|
(974,861)
|
|
(1,674,760)
|
Financial expenses
|
2,202,742
|
|
2,928,168
|
Share of the profit of associates
|
(345,005)
|
|
(663,139)
|
Stock-based payments
|
12,005
|
|
3,970
|
Movements in provisions and long-term employee
benefit plan expenses
|
77,343
|
|
78,479
|
Foreign exchange difference for trade receivables
|
(2,153,790)
|
|
(7,483,581)
|
Income from the sale of La Plata plant
|
-
|
|
(573,466)
|
Loss on net monetary position
|
(2,690,629)
|
|
(2,084,458)
|
|
|
|
|
Working capital adjustments:
|
|
|
|
Decrease in trade and other receivables
|
6,553,551
|
|
1,708,988
|
(Increase) Decrease in other non-financial assets and inventories
|
63,495
|
|
(144,240)
|
Increase in trade and other payables, other non-financial
liabilities and liabilities from employee benefits
|
427,749
|
|
883,520
|
|
7,044,459
|
|
2,495,752
|
Interest received from customers
|
1,699,002
|
|
27,102
|
Income tax paid
|
(6,131,608)
|
|
(2,581,752)
|
Net cash flows provided by (used in) operating activities
|
2,611,853
|
|
(58,898)
|
|
|
|
|
Investing activities
|
|
|
|
Purchase of property, plant and equipment
|
(5,594,685)
|
|
(1,740,242)
|
Acquisition of the Brigadier López Power Plant
|
(6,736,771)
|
|
-
|
Cash flows generated from the sale of La Plata plant
|
-
|
|
766,137
|
Dividends received
|
93,278
|
|
1,080,625
|
Sale of available-for-sale assets, net
|
496,232
|
|
1,733,910
|
Net cash flows provided by (used in) investing activities
|
(11,741,946)
|
|
1,840,430
|
|
|
|
|
Financing activities
|
|
|
|
Banks overdrafts received (paid), net
|
575,627
|
|
8,794
|
Long term loans received
|
10,375,493
|
|
5,254,550
|
Long term loans paid
|
(369,275)
|
|
(2,969,886)
|
Interests and other loan costs paid
|
(1,154,219)
|
|
(136,205)
|
Contributions from non-controlling interests
|
154,297
|
|
66,302
|
Dividends paid
|
(18,484)
|
|
(1,747,902)
|
Net cash flows provided by financing activities
|
9,563,439
|
|
475,653
|
|
|
|
|
|
|
|
|
Increase in cash and cash equivalents
|
433,346
|
|
2,257,185
|
Exchange difference and other financial results
|
6,445
|
|
1,224,415
|
Monetary results effect on cash and cash equivalents
|
90,383
|
|
508,569
|
Cash and cash equivalents as of January 1
|
281,467
|
|
160,183
|
Cash and cash equivalents as of March 31
|
811,641
|
|
4,150,352
|
F. Information about the Conference Call
There will be a conference call to discuss Central Puerto’s Second Quarter 2019 results on August 13, 2019 at 13:00 New York Time / 14:00 Buenos Aires Time.
The hosts will be Mr. Jorge Rauber, Chief Executive Officer. To access the conference call, please dial:
United States Participants (Toll Free): 1-888-317-6003
Argentina Participants (Toll Free) : 0800-555-0645
International Participants : +1-412-317-6061
Passcode : 8145356
The Company will also host a live audio webcast of the conference call on the Investor Relations section of the Company's website at www.centralpuerto.com. Please allow extra time prior to the call to visit the website and download any
streaming media software that might be required to listen to the webcast. The call will be available for replay until August 12, 2020 at +1-412-317-0088 with access code #10134082 and on the Company website under the Investor Relations
section.
You may find additional information on the Company at:
-
http://investors.centralpuerto.com/
-
www.sec.gov
-
www.cnv.gob.ar
Glossary
In this release, except where otherwise indicated or where the context otherwise requires:
-
“CAMMESA” refers to
Compañía Administradora del Mercado Mayorista Eléctrico Sociedad Anónima
;
-
“CVP” refers to Variable Cost of Production of producing energy, which may be declared by the generation companies to CAMMESA;
-
“CVO effect” refers to the CVO receivables update, and interests triggered by the CVO Plant Commercial Operation Approval;
-
“Ecogas” refers collectively to
Distribuidora de Gas Cuyana
(“DGCU”), and its controlling company
Inversora de Gas Cuyana (“IGCU”)
and
Distribuidora de Gas del Centro
(“DGCE”), and its controlling company
Inversora
de Gas del Centro (“IGCE”)
;
-
“Energía Base” (legacy energy) refers to the regulatory framework established under Resolution SE No. 95/13, as amended, and, since February 2017, regulated by Resolution SEE No. 19/17;
-
“FONINVEMEM” or “FONI”, refers to the
Fondo para Inversiones Necesarias que Permitan Incrementar la Oferta de Energía Eléctrica en el Mercado Eléctrico Mayorista
(the Fund for Investments Required to Increase the Electric Power
Supply) and Similar Programs, including Central Vuelta de Obligado (CVO) Agreement;
-
“MATER”, refers to Mercado a Término de Energía Renovable, is the regulatory framework that allows generators to sell electric energy from renewable sources directly to large users.
-
“p.p.”, referes to percentage points;
Disclaimer
Rounding amounts and percentages: Certain amounts and percentages included in this release have been rounded for ease of presentation. Percentage figures included in this release have not in all cases been calculated on the basis of such
rounded figures, but on the basis of such amounts prior to rounding. For this reason, certain percentage amounts in this release may vary from those obtained by performing the same calculations using the figures in the financial statements.
In addition, certain other amounts that appear in this release may not sum due to rounding.
This release contains certain metrics, including information per share, operating information, and others, which do not have standardized meanings or standard methods of calculation and therefore such measures may not be comparable to
similar measures used by other companies. Such metrics have been included herein to provide readers with additional measures to evaluate the Company’s performance; however, such measures are not reliable indicators of the future performance
of the Company and future performance may not compare to the performance in previous periods.
OTHER INFORMATION
Central Puerto routinely posts important information for investors in the Investor Relations support section on its website, www.centralpuerto.com. From time to time, Central Puerto may use its website as a channel of distribution of
material Company information. Accordingly, investors should monitor Central Puerto’s Investor Support website, in addition to following the Company’s press releases, SEC filings, public conference calls and webcasts. The information contained
on, or that may be accessed through, the Company’s website is not incorporated by reference into, and is not a part of, this release.
CAUTIONARY STATEMENTS RELEVANT TO FORWARD-LOOKING INFORMATION
This release contains certain forward-looking information and forward-looking statements as defined in applicable securities laws (collectively referred to in this Earnings Release as “forward-looking statements”) that constitute
forward-looking statements. All statements other than statements of historical fact are forward-looking statements. The words ‘‘anticipate’’, ‘‘believe’’, ‘‘could’’, ‘‘expect’’, ‘‘should’’, ‘‘plan’’, ‘‘intend’’, ‘‘will’’, ‘‘estimate’’ and
‘‘potential’’, and similar expressions, as they relate to the Company, are intended to identify forward-looking statements.
Statements regarding possible or assumed future results of operations, business strategies, financing plans, competitive position, industry environment, potential growth opportunities, the effects of future regulation and the effects of
competition, expected power generation and capital expenditures plan, are examples of forward-looking statements. Forward-looking statements are necessarily based upon a number of factors and assumptions that, while considered reasonable by
management, are inherently subject to significant business, economic and competitive uncertainties and contingencies, which may cause the actual results, performance or achievements of the Company to be materially different from any future
results, performance or achievements expressed or implied by the forward-looking statements.
The Company assumes no obligation to update forward-looking statements except as required under securities laws. Further information concerning risks and uncertainties associated with these forward-looking statements and the Company’s
business can be found in the Company’s public disclosures filed on EDGAR (www.sec.gov).
Adjusted EBITDA
In this release, Adjusted EBITDA, a non-IFRS financial measure, is defined as net income for the year,
plus
finance expenses,
minus
finance income,
minus
share of the profit of associates, minus depreciation and
amortization,
plus
income tax expense,
plus
depreciation and amortization,
minus
net results of discontinued operations.
Adjusted EBITDA is believed to provide useful supplemental information to investors about the Company and its results. Adjusted EBITDA is among the measures used by the Company’s management team to evaluate the financial and operating
performance and make day-to-day financial and operating decisions. In addition, Adjusted EBITDA is frequently used by securities analysts, investors and other parties to evaluate companies in the industry. Adjusted EBITDA is believed to be
helpful to investors because it provides additional information about trends in the core operating performance prior to considering the impact of capital structure, depreciation, amortization and taxation on the results.
Adjusted EBITDA should not be considered in isolation or as a substitute for other measures of financial performance reported in accordance with IFRS. Adjusted EBITDA has limitations as an analytical tool, including:
• Adjusted EBITDA does not reflect changes in, including cash requirements for, our working capital needs or contractual commitments;
• Adjusted EBITDA does not reflect our finance expenses, or the cash requirements to service interest or principal payments on our indebtedness, or interest income or other finance income;
• Adjusted EBITDA does not reflect our income tax expense or the cash requirements to pay our income taxes;
• although depreciation and amortization are non-cash charges, the assets being depreciated or amortized often will need to be replaced in the future, and Adjusted EBITDA does not reflect any cash requirements for these replacements;
• although share of the profit of associates is a non-cash charge, Adjusted EBITDA does not consider the potential collection of dividends; and
• other companies may calculate Adjusted EBITDA differently, limiting its usefulness as a comparative measure.
The Company compensates for the inherent limitations associated with using Adjusted EBITDA through disclosure of these limitations, presentation of the Company’s consolidated financial statements in accordance with IFRS and reconciliation
of Adjusted EBITDA to the most directly comparable IFRS measure, net income. For a reconciliation of the net income to Adjusted EBITDA, see the tables included in this release.