Central Puerto NYSE: CEPU reported second-quarter 2026 adjusted EBITDA of $145.0 million, up 20.1% from the first quarter and 136.2% from a year earlier, as higher contracted sales, seasonal spot-market pricing and margins from self-procured fuel lifted results.
Revenue totaled $453.3 million, rising 82.3% sequentially and 165.8% year over year. The company said the figure included $176.4 million of spot cost-variable-pass-through revenue associated with fuel it procured directly for generation.
Total generation was 5,250 GWh during the quarter, representing about 15% of Argentina’s grid generation. Output fell 3.1% from the first quarter but increased 20.1% from the prior-year period. Central Puerto said stronger hydrology drove a 112.9% sequential increase in generation at Piedra del Águila, while generation from legacy steam turbines and renewable facilities declined from the prior quarter.
Fuel procurement and spot-market exposure
Chief Executive Officer Fernando Bonnet said self-procurement activity in July was running at levels similar to June, while August could see lower volumes if winter conditions continue. He said Central Puerto expects less self-procured fuel in the fourth quarter because Plan Gas.Ar contracts remain in place, limiting the company’s ability to contract directly for local natural gas.
Bonnet said the company expects procurement of liquid fuels and liquefied natural gas to continue into 2027, while direct purchases of local natural gas should increase. Central Puerto would be “happy” to have enough self-procured local gas to operate three combined-cycle units, representing roughly 4 million to 5 million cubic meters per day on average, or about one-third to 40% of its total consumption, he said.
He added that full local-gas self-procurement could become more feasible closer to 2028, when the Plan Gas.Ar program approaches its end.
On the composition of spot revenue, Bonnet estimated that variable energy payments currently account for about 60% and capacity payments for roughly 40%, though he noted the mix changes depending on the time of year. Winter conditions can increase variable margins as less-efficient units and liquid fuels set system costs, while capacity payments remain fixed.
Contracting strategy and growth pipeline
Central Puerto said its market share in Argentina’s Resolution 400 term market exceeded 35% in the second quarter and reached 35% in June. The company serves more than 120 large industrial customers as well as 16 distribution and sub-distribution companies.
Contracted sales across power purchase agreements, the term market and the MATER renewable market represented 55% of sales volumes and 48% of revenue, including hydroelectric sales under Piedra del Águila’s concession terms.
Bonnet said the company is seeking to expand contracts with selected distribution companies, though it does not intend to contract all of its capacity. He said Central Puerto aims to preserve some spot-market exposure to capture higher winter prices while securing contracts that support more stable pricing during lower-price periods.
The company is in discussions with some large distribution companies, although Bonnet said it was not certain whether agreements would be finalized before year-end.
Management also outlined several potential avenues for expansion, including prospective capacity mechanisms being considered by Argentina’s government, future battery-storage opportunities, potential government asset sales, transmission development in northern Argentina with YPF, electricity supply for mining projects and early-stage data-center opportunities.
Bonnet said the company has maintained development work from the 2023 thermal-capacity auction and is preparing additional projects in different locations. He said major mining customers are still working through feasibility phases, with the first large contracts potentially emerging next year. A northern transmission-line development could advance earlier, potentially by the end of 2026, subject to feasibility studies and financing commitments.
Battery projects and capital investment
Central Puerto invested $421.9 million in capital expenditures during the first half of 2026. Spending included $245.0 million for the Piedra del Águila concession, $50.0 million for the acquisition of oil and gas blocks, $106.0 million for battery energy-storage projects and $20.9 million for maintenance and other expenditures.
The company said construction of its battery projects was 69% complete at Nuevo Puerto and 54% complete at Central Costanera. It has executed 81% of the projects’ total capital budget, with major equipment either delivered or in transit.
Central Puerto expects the storage facilities to be energized between October and November and to begin commercial operations in the fourth quarter. Management expects the projects to contribute between $25 million and $27 million of adjusted EBITDA in 2027 on a full-year operating basis.
The company closed its oil and gas block acquisition in April and said it is maintaining technical due diligence related to the assets.
Balance sheet and financing
As of June 30, Central Puerto reported total financial debt of $671.9 million and cash equivalents and financial current assets of $178.4 million, resulting in net debt of $493.4 million. Based on last-12-month adjusted EBITDA of $403.8 million, net leverage was 1.2 times.
The company issued $130.1 million of Class D notes in April at a 6.0% rate with a 48-month bullet maturity. Following the quarter’s end, it issued $94.3 million of Class E notes at a 5.5% rate with a 36-month bullet maturity, primarily to fund working capital and fuel-procurement requirements.
Bonnet said Central Puerto remains focused on bringing its battery projects into operation, advancing development of its acquired Vaca Muerta assets and pursuing expansion opportunities while maintaining financial flexibility.
About Central Puerto (NYSE:CEPU)
Central Puerto SA NYSE: CEPU is Argentina's leading private power generation company, managing a diversified portfolio of thermal and renewable energy facilities across the country. Established following the privatization of the state-owned electricity company in the early 1990s, Central Puerto develops, operates and maintains a mix of combined-cycle and open-cycle gas turbine plants, as well as hydroelectric and renewable installations. The company's thermal assets provide baseload and flexible generation capacity, while its renewable portfolio includes wind farms and solar parks that support Argentina's clean energy objectives.
Headquartered in Buenos Aires, Central Puerto serves the national wholesale electricity market through long-term contracts with distribution companies and major industrial clients.
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