Central Puerto S.A. Q3 FY2025 earnings call

Key Highlights - Adjusted EBITDA was strong at $101.1 million reflecting effective fuel cost pass-through and solid operational performance. - Moody's upgraded rating to AA from AA-. - Successfully participated in AlmaGBA Battery Energy Storage System bidding process, awarded 2 projects with 205-megawatt hours of new BESS capacity, scheduled to be operational by mid-2027. - Energy Secretariat Resolution 400 marks a pivotal step in power market liberalization. - Renewable generation revenues up 24% QoQ, supported by 21% rise in generation volumes; thermal revenues also rose. - CapEx included acquisition of Cafayate solar farm, final works on Brigadier Lopez combined cycle and San Carlos Solar farm near COD.

Adjusted EBITDA reached $101.1 million, up 64% quarter-on-quarter and 8% year-on-year. Revenues totaled $233.9 million, up 30% quarter-on-quarter. Revenue mix was 53% spot and 47% contracted with 63% of total revenues denominated in dollars. Renewable generation revenues increased by 24% this quarter, supported by a 21% rise in generation volumes quarter-on-quarter. Total generation was 4,539 gigawatt hours, 4% up from second quarter 2025, but 20% down year-on-year. Net leverage ratio was very healthy at 0.5x. Third quarter 2025 capital expenditures amounted to $76.1 million which includes the acquisition of Cafayate solar farm at $48.5 million.

Forward-Looking - Projects from AlmaGBA BESS tender to be fully operational by mid-2027. - Resolution 400 creates strong business outlook. - Brigadier Lopez combined cycle and San Carlos Solar farm near COD. - Expected additional EBITDA from new capacity and market deregulation. - CapEx in 2026 for awarded BESS projects estimated at $130-140 million.

Risks - Lower hydrology at Piedra del Aguila led to 20% year-on-year decrease in total generation. - Market uncertainty regarding price setting by CAMMESA and Energy Secretariat affecting sales to large users.

Q: Guidance on market liberalization impact, selling 20% to large users?

A: Expect 20%-25% EBITDA increase, confident of reaching 20% sales to large users as market evolves.

Q: Capital allocation, term market price?

A: Not evaluating asset reallocation, term market prices may stabilize around $60 in long run.

Q: CapEx 2026, dividend?

A: CapEx 2026 around $130-140 million for BESS projects, dividend depends on hydro auction results.