CEPU

• Overall Financial Performance

  • Central Puerto delivered strong Q2 2026 results with double-digit growth in both revenue and adjusted EBITDA compared to Q1 2026 and Q2 2025. Net leverage stands at a healthy 1.2x last 12-month adjusted EBITDA, providing significant financial flexibility. The company transitioned to the US dollar as its functional currency starting January 1, 2026.
  • Commercial Development
  • Average market share in the Resolution 400 term market (MAT) exceeded 35% in Q2 2026, rising through the quarter to 35% in June. The company now serves 120+ large industrial customers plus 16 distribution/sub-distribution companies. Overall contracted sales represent 55% of total sales volume and 48% of total revenue, including Piedra del Águila hydro sales.
  • Revenue growth was driven by increased contracted sales (from a full quarter of PPA revenue for the Briarier López plant, higher term market sales across all assets, and reclassification of Piedra del Águila sales as contracted) and higher spot sales (from seasonal winter capacity remuneration and self-procured fuel cost pass-through).
  • Operational Performance
  • Piedra del Águila hydropower output more than doubled quarter-on-quarter to 112.9% due to stronger hydrology, offsetting lower output from legacy steam turbines, renewable assets, and the still out-of-service Luján de Cuyo gas turbine. Thermal combined cycle availability held at 87.0%.
  • Growth Project Progress
  • Battery storage projects are progressing on schedule: construction is 69% complete at Nuevo Puerto and 54% complete at Central Costanera, with 81% of total project capital budget spent. Major equipment is delivered or in transit.
  • The acquisition of oil and gas blocks closed in April 2026, with technical due diligence ongoing prior to final regulatory closing. In April 2026, the company issued $133.1 million in 6% Class D notes, and followed with a $94.3 million 5.5% Class E note issue in July 2026 after quarter end to fund working capital and fuel procurement.

• Battery storage projects are on track to be energized between October and November 2026, with commercial operation in Q4 2026. Once operational, the projects are expected to contribute $25-$27 million to adjusted EBITDA in 2027.
• Self-procured fuel levels in Q3 2026 are expected to match June 2026 levels in July, then decline moderately in August. Self-procurement is projected to decrease significantly in Q4 2026 due to the continued terms of the Plan Gas Cuatro program that limits producers from moving contracts to direct sales.
• A new Argentine government regular capacity scheme is expected to launch by Q4 2026 at the latest. Self-procurement of local natural gas is projected to increase meaningfully in 2027, with full transition away from CAMESA-sourced gas expected by 2028 as Plan Gas Cuatro contracts expire.
• First major contracts for electricity provision to mining projects are expected to be signed in 2027, with a possible transmission line deal for northern lithium projects reached by the end of 2026. New PPAs with large distribution companies could be finalized in 2026, though this is not confirmed.

The transcript does not break out financial performance for distinct product segments. Aggregate company results for Q2 2026 are: total revenues of $453.3 million (up 82.3% quarter-on-quarter, up 165.8% year-on-year), adjusted EBITDA of $145.0 million (up 20.1% quarter-on-quarter, up 136.2% year-on-year), and total generation of 5250 GWh (down 3.1% quarter-on-quarter, up 20.1% year-on-year), representing ~15% of total Argentine grid generation. Capital expenditures for H1 2026 totaled $421.9 million, split across the Piedra del Águila concession ($245.0 million), oil and gas block acquisition ($50.0 million), battery storage projects ($106.0 million), and maintenance/other capex ($20.9 million).

• The company's ability to increase direct self-procurement of natural gas is constrained by existing Plan Gas Cuatro contracts between producers and CAMESA, which limit direct contracting in the near term.
• Spot market margins are seasonal, with high margins during winter peak demand driven by expensive liquid fuel and LNG use, and lower margins during summer when system-wide margins contract. Winter spot price spikes are expected to moderate in the future once natural gas pipeline expansions are completed.
• New growth opportunities including mining power provision and government asset sales are still in early stages, with no guarantee of finalized projects or near-term revenue contribution. The Luján de Cuyo gas turbine has remained out of service since a generator failure in Q1 2025, with no timeline for return provided.

Q: What is the expected outlook for self-procured fuel levels in coming quarters after the strong Q2 contribution, and how should analysts model the impact on EBITDA? / A: July 2026 saw similar self-procurement levels to June, while August will likely see moderately lower volumes, with almost no liquid fuel procurement expected going forward. Self-procurement will drop significantly in Q4 2026, as existing Plan Gas Cuatro contracts prevent producers from moving to direct sales. The EBITDA impact combines the margin from self-procurement plus marginal income from new market pricing rules when the company's lower-cost generation is dispatched before more expensive units, which is only present during high-price winter periods. Margin will fall in summer regardless of procurement strategy.

Q: Where does management see future growth opportunities after the Piedra del Águila concession renewal and current battery projects, and what is the timeline for new opportunities? / A: Management expects multiple growth channels: a new regular Argentine capacity scheme launching this quarter or next, where the company will present two pre-developed thermal projects awarded in 2023 plus new projects. Additional opportunities include government-owned power asset privatizations, a transmission line and power provision project for northern lithium miners (with new associated renewable capacity), and power contracts for mining projects and data centers. First major mining contracts are expected in 2027, with the transmission line deal possibly closing by end-2026; all opportunities are currently in early feasibility stages.

Q: What progress has been made on contracting new PPAs with distribution companies to increase contracted volume, and is it more profitable to hold spot exposure or lock in PPAs given recent winter spot price spikes? / A: The company already quickly contracted the full 20% allowed volume with industrial customers after regulatory changes, and is selectively pursuing new contracts with distribution companies, with active discussions with large distributors that could result in deals this year. Management is not targeting 100% contractualization, instead aiming for a balanced mix: holding some spot exposure to capture high winter peak margins while locking in stable prices for the rest of the year to reduce summer margin risk. Winter spot price spikes are expected to be temporary once natural gas pipeline expansions are completed.

Q: What is the split of spot revenue between capacity and energy payments, what is the 2027 outlook for self-procurement ramp, and will dividends be paid this year? / A: Currently, the general split is approximately 60% variable energy payments and 40% fixed capacity payments, reversed from historical splits, varying by month across the year. In 2027, self-procurement of liquid fuels and LNG will stay at 2026 levels, while self-procured natural gas for combined cycles will increase to 4-5 million cubic meters per day, covering ~30-40% of natural gas demand, with full self-procurement expected by 2028 when Plan Gas Cuatro expires. Battery projects will contribute $25-$27 million annual adjusted EBITDA once fully operational, matching the prior guidance. No answer was provided on dividend payments in the exchange.