Central Puerto Q2 2025 Earnings Report

Central Puerto EPS Results

• Actual EPS: $0.48
• Consensus EPS: N/A
• Beat/Miss: N/A
• One Year Ago EPS: N/A

Central Puerto Revenue Results

• Actual Revenue: $179.60 million
• Expected Revenue: N/A
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

Central Puerto Announcement Details

• Quarter: Q2 2025
• Date: 8/14/2025
• Time: After Market Closes
• Conference Call Date: Monday, August 11, 2025
• Conference Call Time: 12:00PM ET

Central Puerto (NYSE:CEPU) S.A. is an Argentina-based electric power generation company whose American depositary shares trade on the New York Stock Exchange under the symbol CEPU. The company develops, owns, and operates power-generation facilities that supply electricity to Argentina’s interconnected power system.

Its generation portfolio includes thermal power plants, which primarily use natural gas and other fuels, as well as hydroelectric and renewable-energy assets. Central Puerto also develops and invests in new generation projects, including wind and solar facilities, to support the diversification of Argentina’s electricity supply.

Central Puerto was established in 1989 during the privatization and restructuring of Argentina’s electricity sector. Its operations are concentrated in Argentina, serving the national electricity market through the production and sale of wholesale power and related capacity and energy services.

Central Puerto Q2 2025 Earnings Call Transcript

Key Takeaways

• Negative Sentiment: Second-quarter Adjusted EBITDA fell 32% quarter-over-quarter to $61.4 million, pressured by seasonal capacity charges, lower generation volumes, and maintenance-related operating costs. Generation declined 12% year-over-year to 4,372 GWh, while thermal availability was 68%.
• Negative Sentiment: Central Costanera incurred approximately $18 million–$20 million in extraordinary boiler maintenance costs, with management saying the expense is not expected to be recovered through insurance. The company said the work should improve the plant’s availability and operating performance over the next 20 years.
• Positive Sentiment: Central Puerto is nearing completion of 155 MW of new capacity: the 140 MW Brigadier López combined-cycle expansion and the 15 MW San Carlos solar project are both approximately 80% complete and expected to begin commercial operations before year-end 2025.
• Positive Sentiment: The company reported a solid balance sheet, with $235 million in cash and current financial assets, $409 million of gross debt, and net leverage of 0.56x trailing-twelve-month Adjusted EBITDA. First-half capital expenditures of $102.4 million were fully funded by operating cash flow.
• Neutral Sentiment: Management is reviewing new government terms for hydro concession extensions and awaiting further clarity on electricity-market reforms, the ALMA battery-storage tender, and potential future thermal and hydro auctions. Piedra del Águila currently contributes approximately $30 million–$35 million of annual EBITDA.

Presentation

[Operator]

Good morning, ladies and gentlemen. Welcome to Central Puerto's Second Quarter of 2025 Earnings Conference Call. A slide presentation is accompanying today's webcast and will be also available on the Investors section of the company's website, www.centralpuerto.com/en/investors. All participants will be in a listen-only mode during the presentation. After that, there will be an opportunity to ask questions. Please note this event is being recorded. If you do not have a copy of the press release, please refer to the Investor Relations support section on the company's corporate website at www.centralpuerto.com. In addition, a replay of today's call will be available in upcoming days by accessing the webcast link at the same section of Central Puerto's website.

[Operator]

Our host today will be Mr. Fernando Bonnet, Central Puerto's CEO, Mr. Enrique Terraneo, the company's CFO, Mrs. Maria Laura Feller, Head of Investor Relations, and Mr. Alejandro Diaz Lopez, Head of Corporate Finance. Maria Laura, please go ahead.

[Maria Laura Feller, Head of Investor Relations at Central Puerto]

Good day. Thank you, operator. Before we begin, please be aware that this presentation contains forward-looking statements based on current outlooks and assumptions. Such statements involve risks and uncertainties that may cause actual results to differ materially. Also, U.S. dollar figures presented may be impacted at a non-cash level, as our financial statements are written in Argentine pesos and subsequently converted into U.S. dollars solely for comparability and analysis purposes. Investors are advised to review the full disclaimer and financial statements available on Central Puerto's website and public filings. Adjusted EBITDA is a non-IFRS measure and should not be considered separately, so please refer to our financial statements. In the second quarter of 2025, the adjusted EBITDA was $61.4 million, which reflects a 32% decrease compared to the $89.9 million in the previous quarter, and above 35% compared to the second quarter of year 2024.

[Maria Laura Feller, Head of Investor Relations at Central Puerto]

Last 12-month, adjusted EBITDA was $309.9 million, and 8% above the full year 2024. In the second quarter, FONINVEMEM debt collections was of $17.2 million. Total generation volumes in this quarter were 4,372 GWh, a 24% decrease compared to the first quarter and 12% decline year-on-year. The decrease compared to the previous quarter is primarily due to the one-time schedule upgrade and maintenance of Central Costanera's Mitsubishi combined cycle and the steam turbine 6 from Central Puerto's complex. Revenues in this quarter were of $179.6 million, a decrease of 8% compared to the previous quarter, and an increase of 7% compared to the same quarter of the previous year. From total revenues in this quarter, 89.6% of total revenues came from energy sales.

[Maria Laura Feller, Head of Investor Relations at Central Puerto]

Such revenues in this quarter decreased from the previous quarter due to the seasonality of spot capacity charges and lower volumes, as discussed before. These effects were partially offset by additional self-managed fuel procurement from the T6 plant and other fuels procure. On the regulatory front, spot prices in pesos adjusted every month for inflation, as set by Secretariat of Energy, adding up to a compounded 5.1% for the quarter. In addition, still on the regulatory front, last Thursday, the National Executive Power released a Decree 476 with further definitions on hydro concessions, which we will review in the following slide. CapEx in the semester were $102.4 million and were mainly allocated to the 155 MW of installed capacity we are building. From this additional capacity, 140 MW will come from the closing of the Brigadier Lopez combined cycle.

[Maria Laura Feller, Head of Investor Relations at Central Puerto]

While 15 MW from the San Carlos solar project. Both projects were at an approximate 80% completion at the end of the quarter, with an expected COD before year-end. Finally, our solid financial position is reflected in the balance statement of the quarter, with a resulting net leverage ratio of 0.56x the last 12-month adjusted EBITDA. As discussed before, the Secretariat of Energy has allowed monthly adjustments to peso-denominated electricity spot prices to reflect inflation. Regarding the Piedra del Águila concession extension, last Thursday, the National Executive Power issued the Decree number 476. This decree established a new set of terms and a required payment for an adhesion agreement. It also granted an additional 90-day period for the current concession and opens the possibility for it to be extended until the end of the year.

[Maria Laura Feller, Head of Investor Relations at Central Puerto]

Second quarter adjusted EBITDA decreased 32% quarter-over-quarter, mainly due to the seasonality of capacity charges and the maintenance works in the Costanera and Central Puerto plants. That impacted in lower revenues and additional OpEx related to such maintenance works. The resulting last 12-month adjusted EBITDA is 8% above full year 2024 adjusted EBITDA. Also, to account for this quarter's results, funding collections were $17.2 million. Power generation volumes of the quarter were impacted by Central Costanera's Mitsubishi combined cycle with 1,200 GWh below the previous quarter. Also, the Central Puerto's steam turbine 6 was below the previous quarter by 186 GWh. This resulted in a total thermal availability rate of 68%, an average combined cycle availability of 73%, and an average steam turbine and gas turbines availability of 60%. The steam production increased 20% in the second quarter compared to the previous quarter.

[Maria Laura Feller, Head of Investor Relations at Central Puerto]

Total revenues were $179.6 million, while energy generation related revenues were $160.9 million. In the second quarter, spot revenues were impacted by the seasonal capacity charges established under Resolutions 59 and 294. This led to a quarter-over-quarter revenue reduction of $19.2 million. Additionally, the lower volume sold impacted in the energy component of spot revenues by $12.5 million. These effects were partially offset by additional $18.4 million from self-managed fuel procurement for our T6 plant and other fuels as authorized under Resolution 21. Spot peso-denominated prices represented 16% of total revenues, and during the quarter, such prices maintained parity with inflation and the exchange rate variation. Our ongoing pipeline of projects is a cornerstone of our growth strategy. Let's begin with Brigadier Lopez, a thermal power project that is nearing completion.

[Maria Laura Feller, Head of Investor Relations at Central Puerto]

With the closing of the Brigadier Lopez combined cycle, we are adding 140 MW to its current capacity, bringing the total installed capacity to 421 MW. Total project investment will be of approximately $185 million, and we are on track for commercial operation in the fourth quarter of 2025. Next, we have the San Carlos Solar project, which will deliver 15 MW of installed capacity with an estimated CapEx of $18 million. Like Brigadier Lopez, San Carlos is expected to be operational before year-end. Finally, we turn to Alamitos, a wind project planned for 130 MW with potential expansion to 150 MW, depending on final technology offers. With an estimated investment of $130 million or $150 million, Alamitos is currently in the bidding phase for power generation technology and engineering services. Construction is scheduled to begin in the first quarter of 2026.

[Maria Laura Feller, Head of Investor Relations at Central Puerto]

Central Puerto is participating in the battery storage tender process. We submitted bids for 150 MW through Central Puerto and 55 MW through Central Costanera. The AlmaGBA tender process is ongoing, with final definitions expected by the end of August. Let us also briefly touch on the hydro concession extensions. Last Friday, the National Executive Power released new conditions that are under our analysis at this moment. As discussed earlier, our strong balance sheet and financial flexibility is reflected in these figures. Our standing financial debt was $409 million as of June 13th. Cash, cash equivalents, and current financial assets balance was $235 million. The resulting net leverage ratio was 0.56x the last 12-month adjusted EBITDA. Outstanding rate under the FONINVEMEM program stood at $166.5 million and is being collected in monthly installments through May 2028.

[Maria Laura Feller, Head of Investor Relations at Central Puerto]

It is good to remark that our capital expenditures of this semester were fully financed by our operating cash flow. On the market overview, variations in the demand reflect the seasonal effect of the second quarter of the year, where the temperatures were milder compared to the previous quarter. On the composition of the offer, hydroelectric power generation is being impacted by low water levels. Total system installed capacity remained quite stable. To conclude, we would like to share our takeaways for the second quarter of the year. Starting from our growth plan that is already adding around 300 MW of installed capacity, reflecting our active focus on growth opportunities. With the Brigadier Lopez combined cycle closing and the San Carlos solar farm that are nearing conclusion, and the Alamitos Wind Farm that is currently in the design phase.

[Maria Laura Feller, Head of Investor Relations at Central Puerto]

We are also looking forward to the developments in the battery storage tender process and hydro position development. On the operational front, we have highlighted our operation efficiency and availability advocacy for high standards, which are reflected in the Central Costanera's Mitsubishi combined cycle maintenance works and the upgrade of the steam turbine 6 from Central Puerto's complex. On the regulatory front, we expect additional government disclosure to the ongoing electricity market reform, including economic signals to expand our self-managed procurement of fuels as allowed under Resolution 21. Thank you for your attention. Now we can move to the Q&A session.

[Operator]

Thank you very much for the presentation. We will now begin the Q&A section for investors and analysts. If you wish to ask a question, please click on Raise Hand. If your question has already been answered, you can leave the queue by clicking on Put hand down. Please hold while we poll for questions. Our first question comes from Martín Arancet with Balanz. You can open your microphone.

[Martín Arancet, Analyst at Balanz]

Hi. Can you hear me?

[Operator]

Yes, we can hear you, sir.

[Martín Arancet, Analyst at Balanz]

Okay, thanks. Well, thank you for the presentation. I have four questions. I would like to run them one by one, if that's okay. The first one, regarding Central Costanera, even though it was unscheduled maintenance, it seems that it caused a loss for Costanera since OpEx was higher than the revenues. I was wondering if you could add a little bit of color on that, and if you expect to have, I don't know, an additional income from an insurance company or something like that to compensate that loss. Thanks. Hi.

[Operator]

Hi, Martín. We were able to hear you.

[Martín Arancet, Analyst at Balanz]

Okay.

[Operator]

We are having a few technical issues. Just a second, please. We are having a few technical issues. Please hold.

[Fernando Bonnet, CEO at Central Puerto]

Hi. Can you hear me? Hello?

[Martín Arancet, Analyst at Balanz]

Hi. Yes, I can hear you. There is an echo.

[Fernando Bonnet, CEO at Central Puerto]

Martín, can you hear me?

[Martín Arancet, Analyst at Balanz]

Yeah, perfect. Thanks.

[Fernando Bonnet, CEO at Central Puerto]

Yes. Thank you. Sorry for the inconvenience. Well, going to your question, talking about Central Costanera, Mitsubishi combined cycle maintenance. In the maintenance, we performed two important things. One was planned, which was the big maintenance of one of our GTs, which was the 8 GT. That was planned and was performed by Mitsubishi. On the other hand, we performed an extraordinary maintenance in the boiler that was not planned, but that was performed in order to put the boiler in the condition, in our standards, in Central Puerto standards. In the past, the previous owner was not doing all the maintenance that we understand that they need to do in the boiler. We performed a big maintenance on the two boilers of the two GTs. That was extraordinary. But as a consequence, that was a degradation during the operation.

[Fernando Bonnet, CEO at Central Puerto]

It's not something that was covered by the insurance company. We are not expecting to recover that money from the insurance company. But, as I mentioned, we put that two boilers in a good perspective for the operation in the next 20 years. It's something that we need to perform in order to have that combined cycle operating in the Central Puerto standards with an availability over 90%-95%. We expect that this is going to happen after that big maintenance that we perform.

[Martín Arancet, Analyst at Balanz]

Okay, great. Just to follow up on that, how much will you say that it was the additional cost for this unplanned maintenance of the boiler?

[Fernando Bonnet, CEO at Central Puerto]

It's something around $18 million, $20 million.

[Martín Arancet, Analyst at Balanz]

Okay, great. My second question is about the Alamitos project. The two years construction scale, it seems a little bit longer than similar projects with the same technology. I was wondering if you could add some color on that, on why the two years. I don't know if there is some issues with the providers of the technology or something like that.

[Fernando Bonnet, CEO at Central Puerto]

No, there is not an issue. Perhaps it's something that we are very cautious. We expect that could be less, as you mentioned. But, yes, perhaps talking about being cautious, perhaps we are taking two or three months additionally, that we expected, really expected.

[Martín Arancet, Analyst at Balanz]

Okay, great. Then, a quick one. What is your CapEx expectations for the remainder of the year?

[Fernando Bonnet, CEO at Central Puerto]

Well, we have some remaining CapEx for Brigadier Lopez, around $35 million, $40 million, and a small amount for San Carlos project, which is, I do not know, $2 million or $3 million more. Perhaps at the end of the year, if we can reach if we can accelerate, as we have been talking with Alamitos, something related to, yes, 20% of the total cost.

[Martín Arancet, Analyst at Balanz]

Okay, great. My last question then. Well, as you mentioned, there was the extension of the hydro concessions.

[Fernando Bonnet, CEO at Central Puerto]

Yes.

[Martín Arancet, Analyst at Balanz]

Yes. I was wondering there, how much is the current contribution to EBITDA of Piedra del Águila? Also regarding, the auctions, I think that you are probably also waiting for the new thermal auction.

[Martín Arancet, Analyst at Balanz]

I don't know if there's something planned for that.

[Fernando Bonnet, CEO at Central Puerto]

In fact, in talking about the extension, in fact, our extension is not so relevant because our previous extension ends 29 of December. So it's two or three days, the new extension, so it's not so relevant. It's more relevant for the other concession that ends on August. So it's not so relevant. The current EBITDA of Piedra del Águila is around $35 million. Depending on how they're going to adjust the tariff, it's something that happens every month, but it's something around that $35 million. And depending of course, the electricity, the inflows, water inflows, but it's around between $30 million-$35 million a year.

[Martín Arancet, Analyst at Balanz]

Okay. Great. You'll wait to see the hydro auction at the end of the year. Also, I don't know if you have any news on the new formal auction. I heard that there is some issues to get new turbines, and that could be a reason for the delay.

[Fernando Bonnet, CEO at Central Puerto]

New turbines, you refer to hydro or you are talking about thermal right now?

[Martín Arancet, Analyst at Balanz]

Now, both actually. I mean

[Fernando Bonnet, CEO at Central Puerto]

Okay.

[Martín Arancet, Analyst at Balanz]

When do you expect the new hydro auction to replace? Also, if you heard something about the possibility of a new thermal auction.

[Fernando Bonnet, CEO at Central Puerto]

No, in terms of hydro, I think they are adjusting some things with the provinces, Neuquén and Rio Negro. That is perhaps what we hear about why it's having some delays on launching. But, well, I think that perhaps it would be solved at the end of the year, as you mentioned. The new decree that extend the concession established that the ending of the concession is on December or when the government finalize the auction. So the earlier. Or the latest, sorry, not the earlier, the latest. So, I don't know if they can make all the process in this month, at the end of the year. It could be at the end of the year. If not, they don't need a new decree, so they can automatically extend until the timing that they finalized the auction. I don't know.

[Fernando Bonnet, CEO at Central Puerto]

We hear that they want to do it sooner.

[Fernando Bonnet, CEO at Central Puerto]

I don't know. As I mentioned, depending on how they can agree that final points with the provinces and so on. In terms of thermal, they want to finish first the battery auctions and see how is the output about that. Then perhaps the end of the year or beginning of the next one, start talking about a new thermal auction for capacity installed in the critical points of the grid. Yeah.

[Martín Arancet, Analyst at Balanz]

Thank you. Thank you very much. That's all on my side.

[Fernando Bonnet, CEO at Central Puerto]

Thank you. Thank you for your interest.

[Operator]

Our next question comes from Julián Casas with Balanz. You can open your microphone, sir.

[Julián Casas, Analyst at Latin Securities]

Hi, can you hear me fine?

[Fernando Bonnet, CEO at Central Puerto]

Yes.

[Julián Casas, Analyst at Latin Securities]

Okay. I am actually from Latin Securities, no worries. I wanted to ask you if you could please walk us through how you arrived at the $409 million in gross debt figure that you mentioned before.

[Fernando Bonnet, CEO at Central Puerto]

Okay. Enrique, you want to go through it?

[Julián Casas, Analyst at Latin Securities]

Yes, if you don't mind.

[Fernando Bonnet, CEO at Central Puerto]

Yeah. You have the. Just a second, please.

[Julián Casas, Analyst at Latin Securities]

Sure.

[Enrique Terraneo, CFO at Central Puerto]

Hello. Hi?

[Julián Casas, Analyst at Latin Securities]

Yes, hi.

[Enrique Terraneo, CFO at Central Puerto]

Okay. We have around $100 million of loans at Central Puerto level. Then we have another $50 million in Central Costanera. We have been to lease financing.

[Julián Casas, Analyst at Latin Securities]

Okay.

[Enrique Terraneo, CFO at Central Puerto]

The rest of the amount are loans at the subsidiary level, a project finance loan mainly with IFC and IDB for approximately $150 million.

[Julián Casas, Analyst at Latin Securities]

Okay. Thank you very much.

[Enrique Terraneo, CFO at Central Puerto]

Sorry for the [inaudible]

[Julián Casas, Analyst at Latin Securities]

No, don't worry at all. It was a tough question.

[Operator]

Again, if you have a question, please press the button Reaction and then click on Raise Hand. This concludes our Q&A session. I would like to turn the conference back over to Fernando Bonnet for any closing remarks.

[Fernando Bonnet, CEO at Central Puerto]

Thank you to everyone for your interest in Central Puerto. We encourage you to call us for any information that you may need. Have a great day.

[Operator]

This concludes today's presentation. You may now disconnect and have a nice day.

Participants

Executives

• Maria Laura Feller, Head of Investor Relations
• Fernando Bonnet, CEO
• Enrique Terraneo, CFO

Analysts

• Martín Arancet, Analyst at Balanz
• Julián Casas, Analyst at Latin Securities