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Central Puerto: Power Capacity Expansion and Strong Cash Flow Generation
BUENOS AIRES, Argentina
Results for the fiscal year and Quarter ended on December 31, 2017
Central Puerto S.A. (“Central Puerto” or the “Company”) (NYSE: CEPU),
the largest private sector power generation company in Argentina, as
measured by generated power, according to data from CAMMESA, with a
geographically and technologically well-diversified generation asset
portfolio, reports its consolidated financial results for the
three-month period ended December 31, 2017 (“Fourth Quarter” or
“4Q2017”), and its audited annual results for 2017.
A conference call to discuss 4Q2017 and full year financial results will
be held on March 13, 2017 at 12 pm Eastern Time (see details below). All
information provided is presented in a consolidated basis, unless
otherwise stated.
All figures are expressed in Argentinean Pesos and growth comparisons
refer to the same period of the prior year, except when otherwise
specified. Definitions and terms used herein are provided in the
Glossary at the end of this document. This release does not contain all
of the Company’s financial information. As a result, investors should
read this release in conjunction with Central Puerto’s consolidated
financial statements and the notes to those statements for the years
ended December 31, 2017 and 2016 available on the Company’s website.
A. 4Q2017 and Full Year 2017 Highlights
Significant increase in 2017 revenues after key changes in Energia
Base framework: The Ministry of Energy increased remuneration to
generators and set all prices in US dollars.
Revenues in 2017 were 67% higher than in 2016, reaching
Ps. 5,957 million, while Adjusted EBITDA of continuing operations
in 2017 was 47% higher than in 2016, totaling Ps. 3.439 million.
Finally, Net income of the period was 98% higher than in
2016, reaching Ps. 3,494 million.
Strong cash flow generation, supported by FONINVEMEM cash flows: Cash
flows from operations, reached Ps. 2,389 million. This figure includes
FONINVEMEM collections for a total amount of Ps. 351 million.
Stable operational performance: Energy generation from continuing
operations was 15,626 GWh, 7% higher than in 2016, while machine
availability (weighted average by power capacity) of thermal units was
90%, compared to 76% in 2016, exceeding market average.
+423 MW awarded capacity in co-generation units: During 4Q2017,
Central Puerto was awarded with 2 new thermal plants, Luján de Cuyo and
Terminal 6-San Lorenzo, increasing installed capacity under construction
to 657 MW.
+87 MW of awarded capacity in renewable energy: Under Renovar
Program (Round 2), Central Puerto was awarded with La Genoveva
project, adding 87 MW of capacity to the wind portfolio, that totals 234
MW with La Castellana and Achiras farms, currently under construction
(147 MW).
____________________________________________________________________________________________________________________________________________
“This was an exceptional year for Central Puerto, as we successfully
executed our strategy based on growing on both renewable and
conventional thermal production. In a highly competitive environment,
Central Puerto was able to take advantage of its strengths in terms of
engineering, financial and strategic capabilities to keep its position
as leader in the Argentinean market in terms of power generation among
private players.
The market for the legacy generation has also improved significantly
during 2017.
Looking forward, we are prepared for the next
steps, and ready to help rebuild the power market in the country, while
creating and delivering value to our shareholders”
Jorge Rauber CEO
____________________________________________________________________________________________________________________________________________
B. Recent News
New listing on NYSE: In February 2018, ADSs were approved for
listing on the New York Stock Exchange under the symbol “CEPU.”
Delivering on capacity growth – New renewable projects for 46 MW: Under
the new regulatory framework (MATER), in which generators are allowed to
enter into renewable energy power purchase agreements directly with
large users, CP Renovables -a subsidiary of Central Puerto- was granted
access to the grid for La Castellana II and Achiras II wind projects,
adding the possibility to sell 46 MW of new power capacity.
Successful transfer of La Plata plant provided funds for new
opportunities: In 4Q2017, YPF accepted Central Puerto’s offer to
sell the La Plata plant for US$31.5 million. The transaction was subject
to conditions that were met during 1Q2018. The proceeds from this
transaction will be used to fund ongoing thermal projects during 2018.
Cash from potential sale of non-core assets to fund growth:
Central Puerto intends to sell its interest in Ecogas, subject to
favorable market conditions. This operation may be executed in one or
more potential public offerings in national and/or international
markets. In order to facilitate the transaction, the controlling
companies might be merged and listed in an international stock exchange.
Central Puerto currently holds an indirect interest of 22.49% in DGCU
and a direct and indirect interest of 39.69% in DGCE.
Dividends from Ecogas: During 1Q2018, Central Puerto collected
US$. 13,6 million from DGCE and its controlling company. The Company
also expects to collect dividends from DGCU during 1H2018.
TGM claim cashed: In 2009, TGM, a subsidiary in which Central
Puerto holds a 20% interest, terminated its gas supply contract with YPF
as a result of repeated breaches by YPF. In 4Q2017, YPF agreed to pay
TGM, US$114 million in order to end TGM’s claim against YPF. During
1H2018, Central Puerto expects to receive dividends, in proportion to
its interest in TGM.
Potential dividend distribution: Taking into account that the
recent changes in the Argentine tax regulation do not apply to 2017
results, the Company proposed a dividend distribution of Ps. 0.70 per
share.
C. Main operating metrics
The table below sets forth key operating metrics for 4Q2017, and 2017,
compared to 4Q2016, 3Q2017 and 2016:
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Key Metrics
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4Q
2017
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3Q
2017
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4Q
2016
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|
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Var %
(4Q /4Q)
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|
|
2017
|
|
|
2016
|
|
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Var %
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|
Continuing Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Energy Generation (GWh)
|
|
|
|
4,039
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|
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3,937
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|
|
3,412
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18%
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|
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15,626
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14,639
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7%
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-Electric Energy Generation - Thermal
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2,455
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2,986
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2825
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(13%)
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11,901
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12,281
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(3%)
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-Electric Energy Generation - Hydro
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1,583
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951
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587
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170%
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3,725
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2,358
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58%
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Installed capacity (MW; EoP1)
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3,663
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3,791
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3,791
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(3%)
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3,663
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3,791
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(3%)
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-Installed capacity - Thermal (MW)
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2,222
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2,350
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2,350
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(5%)
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2,350
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2,350
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(5%)
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-Installed capacity - Hydro (MW)
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1,441
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1,441
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1,441
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0%
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1,441
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1,441
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0%
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Availability - Thermal2
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92%
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92%
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80%
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90%
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76%
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Steam production (thousand Tons)
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289
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303
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293
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(1%)
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1,178
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1,115
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6%
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Non - Continuing Operations
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|
|
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Energy Generation (GWh)3
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177
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239
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218
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(19%)
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837
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905
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6%
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Steam production (thousand Tons)3
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346
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443
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417
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(17%)
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1,599
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1,708
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(6%)
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1 EoP refers to “End of Period”
2 Available
weighted average by power capacity. Off time due to scheduled
maintenance agreed with CAMMESA is not included in the ratio. For
4Q2017, data for October and November 2017 (latest available data). For
2017, data from January to November 2017 (latest available data).
3
Refers to the generation from La Plata Plant, which was sold
during 1Q2018.
Source: CAMMESA, company data.
In 4Q2017, energy generation from continuing operations increased 18% as
compared to the same period of 2016, due to a 170% increase in energy
generation for hydro plants, after an increase in the available water
flow in Piedra del Águila Plant, while thermal generation decreased 13%
due to less dispatch. The availability of thermal units increased to 92%
in 4Q2017, as compared to 80% in 4Q2016, mainly because of lower failure
rate in the steam turbines. Finally, steam generation remained almost
stable, decreasing 1%.
During 2017, energy generation from continuing operations increased 7%
as compared to the same period of 2016, due to a 58% increase in energy
generation for hydro plants, after an increase in the available water
flow in the Piedra del Águila Plant, while thermal generation declined
3% due to less dispatch. The availability of thermal units increased to
90% in 2017 as compared to 76% in 2016, mainly because of a lower
failure rate in the steam turbines. Finally, steam generation increased
6% due to an increase in demand by YPF.
D. Financials
D.1 Main financial magnitudes of continuing operations
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Million Ps.
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4Q
2017
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3Q
2017
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|
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4Q
2016
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|
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Var %
(4Q/4Q)
|
|
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2017
|
|
|
2016
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Var
%
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Revenues
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1,935
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1,539
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906
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114%
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5,957
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3,563
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67%
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Cost of sales
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|
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(787)
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(653)
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(577)
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36%
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(2,742)
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(2,070)
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32%
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Gross profit
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1,149
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|
886
|
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|
329
|
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249%
|
|
|
3,214
|
|
|
1,493
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117%
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Other operating results, net
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53
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|
|
19
|
|
|
82
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(35%)
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(103)
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|
607
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|
|
N/A
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Operating income
|
|
|
|
1,202
|
|
|
905
|
|
|
411
|
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192%
|
|
|
3,111
|
|
|
2,100
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117%
|
|
Depreciation and Amortization
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|
|
|
113
|
|
|
74
|
|
|
60
|
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87%
|
|
|
327
|
|
|
242
|
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26%
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Adjusted EBITDA1
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1,315
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|
|
979
|
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|
472
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179%
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3,439
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2,342
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47%
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1 See “Disclaimer-Adjusted EBITDA” below for further
information.
D.2 Main financial magnitudes of continuing operations (dollar
convenience translation)
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Million US$
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4Q
2017
|
|
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3Q
2017
|
|
|
4Q
2016
|
|
|
Var %
(4Q /4Q)
|
|
|
2017
|
|
|
2016
|
|
|
Var %
|
|
Revenues
|
|
|
|
110
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|
|
89
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58
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89%
|
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|
362
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|
|
240
|
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51%
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Costs of sales
|
|
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(45)
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(38)
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(37)
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20%
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(167)
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(139)
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20%
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Gross profit
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|
65
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|
|
51
|
|
|
21
|
|
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208%
|
|
|
195
|
|
|
101
|
|
|
94%
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Other operating results, net
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|
3
|
|
|
1
|
|
|
5
|
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(42%)
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|
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(6)
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|
|
41
|
|
|
N/A
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|
Operating income
|
|
|
|
68
|
|
|
52
|
|
|
27
|
|
|
158%
|
|
|
189
|
|
|
142
|
|
|
117%
|
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Depreciation and Amortization
|
|
|
|
6
|
|
|
4
|
|
|
4
|
|
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65%
|
|
|
17
|
|
|
14
|
|
|
25%
|
|
Adjusted EBITDA1
|
|
|
|
75
|
|
|
57
|
|
|
30
|
|
|
146%
|
|
|
209
|
|
|
158
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|
|
33%
|
|
Average exchange rate of period
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17.55
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17.29
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|
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15.50
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13%
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16.45
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14.84
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11%
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Exchange rate end of period
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|
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18.65
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17.31
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15.89
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17%
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|
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18.65
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15.89
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17%
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1 See “Disclaimer—Adjusted EBITDA ” below for further
information.
NOTE: The calculation of the financial values expressed in US dollars
arises from the calculation of the results expressed in Argentine pesos
divided by the average of the daily exchange rates quoted by the Banco
de la Nación Argentina for wire transfers (divisas) for the relevant
period. The translations into US dollars have been made for convenience
purposes only. See “Disclaimer—Convenience Translations” below for
further information.
D.3 Adjusted EBITDA Reconciliation of continuing operations
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Million Ps.
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|
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4Q
2017
|
|
|
3Q
2017
|
|
|
4Q
2016
|
|
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Var %
(4Q /4Q)
|
|
|
2017
|
|
|
2016
|
|
|
Var %
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|
Net income for the period
|
|
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1,414
|
|
|
806
|
|
|
366
|
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287%
|
|
|
3,494
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|
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1,769
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98%
|
|
Financial expenses
|
|
|
|
212
|
|
|
162
|
|
|
-
|
|
|
N/A
|
|
|
698
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|
|
620
|
|
|
12%
|
|
Financial income
|
|
|
|
(96)
|
|
|
(124)
|
|
|
671
|
|
|
N/A
|
|
|
(932)
|
|
|
(421)
|
|
|
121%
|
|
Share of the profit of an associate
|
|
|
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(492)
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|
|
(131)
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|
|
(62)
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|
|
700%
|
|
|
(715)
|
|
|
(148)
|
|
|
385%
|
|
Income tax expenses
|
|
|
|
227
|
|
|
354
|
|
|
179
|
|
|
27%
|
|
|
1,052
|
|
|
718
|
|
|
47%
|
|
Depreciation and amortization
|
|
|
|
113
|
|
|
74
|
|
|
60
|
|
|
87%
|
|
|
327
|
|
|
242
|
|
|
38%
|
|
Net income of Non-continuing operations
|
|
|
|
(63)
|
|
|
(163)
|
|
|
(139)
|
|
|
(55%)
|
|
|
(485)
|
|
|
(438)
|
|
|
11%
|
|
Adjusted EBITDA2
|
|
|
|
1,315
|
|
|
979
|
|
|
472
|
|
|
179%
|
|
|
3,439
|
|
|
2,342
|
|
|
47%
|
1The Financial Income for 4Q2016 is expressed net of
Financial Expenses for the period
2 See
“Disclaimer—Adjusted EBITDA” below for further information.
D.4 4Q2017 Results Analysis
Revenues increased 114% to Ps. 1,935 million in 4Q2017, as
compared to Ps. 906 million in 4Q2016. The increase in revenues was
mainly driven by: (i) the tariff increase established by Res. 19/17,
which set higher prices for energy generation and machine availability
and set the prices in US dollars; (ii) an increase of 13% in the average
exchange rate of 4Q2017, as compared to the average exchange rate of
4Q2016, which impacted on tariffs set in US$ dollars; (iii) a 18%
increase in energy generation, that reached 4,039 GWh for continuing
operations during 4Q2017; (iv) Ps. 149 million in revenues coming from
capacity payments (Guaranteed Bid Capacity -DIGO in Spanish) of some
steam units from previous quarters, that were billed and collected
during 4Q2017; (v) Ps. 143 million in additional revenues under
Resolution No. 724/2008 with original due date in 2018 and 2019, that
were collected in advance.
The table below sets forth the tariff scheme for Energia Base effective
since November 2017, by source of generation:
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|
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|
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Thermal
|
|
|
|
|
Hydro
|
|
Capacity payments Res. 19/171
|
|
|
|
|
US$ 7,000 per MW per month
|
|
|
|
|
US$ 3,000 per MW per month
|
|
Energy payments Res. 19/17
|
|
|
|
|
US$ 7 per MWh for generation with natural gas
US$ 8 per MWh for generation with fuel oil/gas oil
|
|
|
|
|
US$ 4.9 per MWh
|
1Effective prices for capacity payment depend 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 “The Argentine Electric Power
Sector—Remuneration Scheme—The Current Remuneration Scheme” in the
prospectus filed with the SEC on February 2, 2018 or the Local
Prospectus filed with the CNV on January 18, 2018.
Adjusted EBITDA increased 179% to 1,315 million in 4Q2017,
compared to Ps. 472 million in 4Q2016. This increase was driven
primarily by the increase in revenues mentioned above, and was partially
offset by: (a) an increase in the cost of sales and in administrative
and selling expenses, mainly due to (x) an increase in dollar
denominated expenses due to an increase of 13% in the average exchange
rate of 4Q2017, as compared to the average exchange rate of 4Q2016; and
(y) an increase in compensation to employees mainly related to
collective bargain agreements.
Adjusted EBITDA + Cash Flows from FONINVEMEM totaled Ps. 1,408
million in 4Q2017. During the 4Q2017, the company received Ps. 93
million (including VAT) from FONINVEMEM receivables, compared to Ps. 82
million (including VAT) in 4Q2016.
Net income increased 287% to Ps. 1,415 million in the 4Q2017, as
compared to Ps. 366 million in 2016. In addition to the above-mentioned
facts, net income also increased as a result of a 700% increase in share
of profit of associates because of (i) a profit of Ps. 127 million from
the interest in Ecogas, through IGCE and IGCU in 4Q2017, as compared to
Ps 47 million in the 4Q 2016; (ii) the Company’s interest in TGM
increased to Ps. 248 million after the settlement entered into between
YPF and TGM to end the claim for breach in the natural gas
transportation contract.
D.5 2017 Annual Results Analysis
Revenues increased 67% to Ps. 5,957 million in 2017, as compared
to Ps. 3,563 million in 2016. The increase in revenues was mainly driven
by (i) the gradual tariff increase established by Res. 19/17 that became
effective as of February, May and November 2017, which set higher prices
for energy generation and machine availability and set the prices in US
dollars, (ii) a 7% increase in energy generation, which for 2017 reached
15,626 GWh for continuing operations, (iii) an increase of 11% in the
average exchange rate during 2017, as compared to the average exchange
rate during 2016; and (iv) Ps. 143 million in additional revenues under
Resolution No. 724/2008 with original due date in 2018 and 2019, that
were collected in advance.
Adjusted EBITDA increased 47% to 3,439 million in 2017, compared
to Ps. 2,342 million in 2016. This increase was driven primarily by the
increase in revenues mentioned above, and was partially offset by: a) an
increase in the cost of sales and in administrative and selling
expenses, mainly due to (i) an increase in dollar denominated expenses
as a result of an increase of 11% in the average exchange rate during
2017, as compared to the average exchange rate during 2016; and (ii) an
increase in compensation to employees mainly related to collective
bargaining agreements; and b) by a decrease in other operating income
due to a one-time gain of Ps.520.4 million registered in 2016 in
connection with a revision of the estimate book value of the amounts
recognized as of December 31, 2015 of certain receivables from CAMMESA
related to LVFVD of additional trust remuneration for financing new
projects, based on changes in the energy sector.
Adjusted EBITDA + Cash Flows from FONINVEMEM totaled Ps. 3,741
million in 2017. During the 2017, the Company received Ps. 351
million from FONINVEMEM receivables (including VAT), compared to Ps. 307
million (including VAT) in 2016.
Net income increased 98% to Ps. 3,494 million in 2017, as
compared to Ps. 1,769 million in 2016. In addition to the drivers
mentioned above, this increase was driven by: a) the net income on the
disposal of available-for-sale financial assets, net totaling Ps.663 in
2017, compared to Ps.227 million in 2016, mainly due to an increase in
sales of available-for-sale financial assets in 2017; and b) an increase
in share of the profit of an associate because of (i) a profit of Ps.
422 million derived from the interest in Ecogas through IGCE and IGCU in
2017, as compared to Ps. 103 million in 2016, as a result of an increase
in tariffs effective October 2016, April 2017 and November 2017; and
(ii) a profit of Ps. 248 million from the interest in TGM in 2017, due
to the settlement entered into between YPF and TGM to end the claim for
breach in the natural gas transportation contract.
D.6 Financial Situation
As of December 31, 2017, the Company and its subsidiaries had cash and
cash equivalents of Ps.89 million, and other current financial assets of
Ps. 1,111 million.
Loans and borrowings totaled less than 0.5 million pesos for Central
Puerto S.A., while its subsidiary, CP Renovables, which holds the
renewable projects, had loans totaling Ps. 1,985 million received for
the construction of the Achiras and La Castellana wind farms.
|
|
|
Million Ps.
|
|
|
|
As December 31
2017
|
|
|
As December 31
2016
|
|
|
Variations
|
|
|
|
|
|
|
|
|
%
|
|
|
Other financial assets
|
|
|
|
1,001
|
|
|
|
1,733
|
|
|
|
-42
|
%
|
|
Cash and cash equivalents
|
|
|
|
21
|
|
|
|
27
|
|
|
|
-22
|
%
|
|
Financial Debt
|
|
|
|
0
|
|
|
|
(1,293
|
)
|
|
|
-100
|
%
|
|
Subtotal Individual Net Cash Position
|
|
|
|
1,022
|
|
|
|
467
|
|
|
|
119
|
%
|
|
Other financial assets of subsidiaries
|
|
|
|
110
|
|
|
|
65
|
|
|
|
69
|
%
|
|
Cash and cash equivalents of subsidiaries
|
|
|
|
68
|
|
|
|
3
|
|
|
|
2,167
|
%
|
|
Financial Debt of subsidiaries
|
|
|
|
(1,985
|
)
|
|
|
0
|
|
|
|
N/A
|
|
|
Subtotal Subsidiaries Net Cash Position
|
|
|
|
(1,806
|
)
|
|
|
68
|
|
|
|
N/A
|
|
|
Consolidated Net Cash Position
|
|
|
|
(784
|
)
|
|
|
535
|
|
|
|
N/A
|
|
D.7 Cash Flows of the year
|
|
|
Million Ps.
|
|
|
|
|
|
|
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
Cash and Cash equivalents at the beginning of the year
|
|
|
|
|
|
|
|
|
30
|
|
|
Net cash flows provided by operating activities
|
|
|
|
|
|
|
|
|
2,389
|
|
|
Net cash flows used in investing activities
|
|
|
|
|
|
|
|
|
(2,317
|
)
|
|
Net cash flows (used in) financing activities
|
|
|
|
|
|
|
|
|
(59
|
)
|
|
Exchange difference and other financial results
|
|
|
|
|
|
|
|
|
46
|
|
|
Cash and Cash equivalents at the end of the year
|
|
|
|
|
|
|
|
|
89
|
|
Net cash provided by operating activities was Ps. 2,389 million
during 2017. Cash flow provided by operating income from continuing
operations was Ps. 3,111 million, partially reduced by an increase of Ps
1,057 million in trade and other receivables as a result of higher
average prices per unit (while the period in which we collect such
receivables remained stable), among other reasons.
Net cash used in investing activities was Ps.2,317 million for 2017.
This amount was mainly explained by (i) payments that amounted to
Ps.3,484 million for (x) to the purchase of property, plant and
equipment, for the construction of Achiras and La Castellana wind farms
and (y) for the acquisition of two gas turbines for the Luján de Cuyo
Project. This was partially offset by (ii) proceeds from the sale of
available-for-sale financial assets that totaled Ps.1,130 million.
Net cash used in financing activities was to Ps.59 million in 2017.
The main variables that account for financing activities were (i)
dividends paid in cash that amounted to Ps. 1,279 million, (ii) the
repayment of loans received from Banco de Galicia y Buenos Aires S.A.
for the purchasing of turbogenerators that totaled Ps.994.97 million and
(iii) loans received by CP Renovables and its subsidiaries for the
construction of the Achiras and La Castellana wind farms for Ps. 1,872
million.
D.8 Tables
|
a. Consolidated Income Statement
|
|
|
|
|
|
|
|
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
Thousand Ps.
|
|
|
Thousand Ps.
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
5,956,596
|
|
|
|
3,562,721
|
|
|
Cost of sales
|
|
|
|
|
|
(2,742,147
|
)
|
|
|
(2,069,752
|
)
|
|
Gross income
|
|
|
|
|
|
3,214,449
|
|
|
|
1,492,969
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Administrative and selling expenses
|
|
|
|
|
|
(651,168
|
)
|
|
|
(445,412
|
)
|
|
Other operating income
|
|
|
|
|
|
640,480
|
|
|
|
1,137,736
|
|
|
Other operating expenses
|
|
|
|
|
|
(92,497
|
)
|
|
|
(84,845
|
)
|
|
Operating income
|
|
|
|
|
|
3,111,264
|
|
|
|
2,100,448
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial income
|
|
|
|
|
|
932,227
|
|
|
|
420,988
|
|
|
Financial expenses
|
|
|
|
|
|
(697,638
|
)
|
|
|
(620,448
|
)
|
|
Share of the profit of associates
|
|
|
|
|
|
715,001
|
|
|
|
147,513
|
|
|
Income before income tax from continuing operations
|
|
|
|
|
|
4,060,854
|
|
|
|
2,048,501
|
|
|
Income tax for the year
|
|
|
|
|
|
(1,051,896
|
)
|
|
|
(717,639
|
)
|
|
Net income for the year from continuing operations
|
|
|
|
|
|
3,008,958
|
|
|
|
1,330,862
|
|
|
NON-CONTINUING OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
Net income for the year from non-continuing operations
|
|
|
|
|
|
485,041
|
|
|
|
437,974
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income for the year
|
|
|
|
|
|
3,493,999
|
|
|
|
1,768,836
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to:
|
|
|
|
|
|
|
|
|
|
|
- Equity holders of the parent
|
|
|
|
|
|
3,507,795
|
|
|
|
1,768,843
|
|
|
- Non-controlling interests
|
|
|
|
|
|
(13,796
|
)
|
|
|
(7
|
)
|
|
|
|
|
|
|
|
3,493,999
|
|
|
|
1,768,836
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share:
|
|
|
|
|
|
|
|
|
|
|
- Basic and diluted (ARS)
|
|
|
|
|
|
2.33
|
|
|
|
1.17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4Q2017
|
|
|
3Q2017
|
|
|
4Q2016
|
|
|
|
|
|
|
|
Thousand Ps.
|
|
|
Thousand Ps.
|
|
|
Thousand Ps.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
1,935,216
|
|
|
|
1,539,456
|
|
|
|
906,200
|
|
|
Cost of sales
|
|
|
|
|
|
(786,545
|
)
|
|
|
(652,988
|
)
|
|
|
(576,939
|
)
|
|
Gross income
|
|
|
|
|
|
1,148,671
|
|
|
|
886,468
|
|
|
|
329,261
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Administrative and selling expenses
|
|
|
|
|
|
(211,866
|
)
|
|
|
(142,068
|
)
|
|
|
(111,157
|
)
|
|
Other operating income
|
|
|
|
|
|
336,099
|
|
|
|
169,370
|
|
|
|
170,008
|
|
|
Other operating expenses
|
|
|
|
|
|
(70,744
|
)
|
|
|
(8,794
|
)
|
|
|
23,280
|
|
|
Operating income
|
|
|
|
|
|
1,202,160
|
|
|
|
904,976
|
|
|
|
411,392
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Results, net
|
|
|
|
|
|
(115,284
|
)
|
|
|
(38,434
|
)
|
|
|
(67,329
|
)
|
|
Share of the profit of associates
|
|
|
|
|
|
492,086
|
|
|
|
130,722
|
|
|
|
61,546
|
|
|
Income before income tax form continuing operations
|
|
|
|
|
|
1,578,962
|
|
|
|
997,264
|
|
|
|
405,609
|
|
|
Income tax for the year
|
|
|
|
|
|
(227,322
|
)
|
|
|
(354,347
|
)
|
|
|
(179,097
|
)
|
|
Net income for the year from continuing operations
|
|
|
|
|
|
1,351,640
|
|
|
|
642,917
|
|
|
|
226,512
|
|
|
NON-CONTINUING OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income for the year from non-continuing operations
|
|
|
|
|
|
63,270
|
|
|
|
162,695
|
|
|
|
139,178
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income for the year
|
|
|
|
|
|
1,414,910
|
|
|
|
805,612
|
|
|
|
365,690
|
|
|
|
|
|
|
|
|
b. Consolidated Statement of Financial Position
|
|
|
|
|
|
|
|
|
|
2017
|
|
|
2016
|
|
|
|
|
|
|
|
Thousand Ps.
|
|
|
Thousand Ps.
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
Non-current assets
|
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment
|
|
|
|
|
|
7,431,728
|
|
|
2,811,539
|
|
Intangible assets
|
|
|
|
|
|
187,833
|
|
|
236,530
|
|
Investment in associates
|
|
|
|
|
|
985,646
|
|
|
307,012
|
|
Trade and other receivables
|
|
|
|
|
|
2,602,213
|
|
|
3,553,129
|
|
Other non-financial assets
|
|
|
|
|
|
12,721
|
|
|
1,466,547
|
|
Inventories
|
|
|
|
|
|
48,203
|
|
|
30,830
|
|
|
|
|
|
|
|
11,268,344
|
|
|
8,405,587
|
|
Current assets
|
|
|
|
|
|
|
|
|
|
|
Inventories
|
|
|
|
|
|
110,290
|
|
|
137,965
|
|
Other non-financial assets
|
|
|
|
|
|
470,895
|
|
|
137,110
|
|
Trade and other receivables
|
|
|
|
|
|
3,887,065
|
|
|
2,215,535
|
|
Other financial assets
|
|
|
|
|
|
1,110,728
|
|
|
1,796,756
|
|
Cash and cash equivalents
|
|
|
|
|
|
88,633
|
|
|
30,008
|
|
|
|
|
|
|
|
5,667,611
|
|
|
4,317,374
|
|
Assets held-for-sale
|
|
|
|
|
|
143,014
|
|
|
-
|
|
|
|
|
|
|
|
5,810,625
|
|
|
4,317,374
|
|
Total assets
|
|
|
|
|
|
17,078,969
|
|
|
12,722,961
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity and liabilities
|
|
|
|
|
|
|
|
|
|
|
Capital stock
|
|
|
|
|
|
1,514,022
|
|
|
1,514,022
|
|
Adjustment to capital stock
|
|
|
|
|
|
664,988
|
|
|
664,988
|
|
Merger premium
|
|
|
|
|
|
376,571
|
|
|
376,571
|
|
Legal and other reserves
|
|
|
|
|
|
463,359
|
|
|
197,996
|
|
Voluntary reserve
|
|
|
|
|
|
450,865
|
|
|
68,913
|
|
Retained earnings
|
|
|
|
|
|
3,503,046
|
|
|
1,757,051
|
|
Accumulated other comprehensive income
|
|
|
|
|
|
43,284
|
|
|
334,747
|
|
Equity attributable to shareholders of the parent
|
|
|
|
|
|
7,071,965
|
|
|
5,147,299
|
|
Non-controlling interests
|
|
|
|
|
|
289,035
|
|
|
6,717
|
|
Total Equity
|
|
|
|
|
|
7,361,000
|
|
|
5,154,016
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current liabilities
|
|
|
|
|
|
|
|
|
|
|
Other non-financial liabilities
|
|
|
|
|
|
468,695
|
|
|
635,162
|
|
Other loans and borrowings
|
|
|
|
|
|
1,478,729
|
|
|
-
|
|
Borrowings from CAMMESA
|
|
|
|
|
|
1,055,558
|
|
|
1,284,783
|
|
Compensation and employee benefits liabilities
|
|
|
|
|
|
113,097
|
|
|
87,705
|
|
Deferred income tax liabilities
|
|
|
|
|
|
703,744
|
|
|
1,136,481
|
|
Provisions
|
|
|
|
|
|
-
|
|
|
125,201
|
|
|
|
|
|
|
|
3,819,823
|
|
|
3,269,332
|
|
Current liabilities
|
|
|
|
|
|
|
|
|
|
|
Trade and other payables
|
|
|
|
|
|
1,017,306
|
|
|
655,598
|
|
Other non-financial liabilities
|
|
|
|
|
|
659,668
|
|
|
476,785
|
|
Borrowings from CAMMESA
|
|
|
|
|
|
1,753,038
|
|
|
1,047,722
|
|
Other loans and borrowings
|
|
|
|
|
|
505,604
|
|
|
1,293,178
|
|
Compensation and employee benefits liabilities
|
|
|
|
|
|
323,078
|
|
|
205,923
|
|
Income tax payable
|
|
|
|
|
|
1,096,817
|
|
|
278,922
|
|
Provisions
|
|
|
|
|
|
413,474
|
|
|
341,485
|
|
|
|
|
|
|
|
5,768,985
|
|
|
4,299,613
|
|
Liabilities associated with the assets held for sale
|
|
|
|
|
|
129,161
|
|
|
-
|
|
|
|
|
|
|
|
5,898,146
|
|
|
4,299,613
|
|
Total liabilities
|
|
|
|
|
|
9,717,969
|
|
|
7,568,945
|
|
Total equity and liabilities
|
|
|
|
|
|
17,078,969
|
|
|
12,722,961
|
|
|
|
|
|
|
|
c. Consolidated Statement of Cash Flow
|
|
|
|
|
|
|
|
|
|
2017
|
|
|
2016
|
|
|
|
|
|
|
|
Thousand Ps.
|
|
|
Thousand Ps.
|
|
Operating activities
|
|
|
|
|
|
|
|
|
|
|
Income for the year before income tax
|
|
|
|
|
|
4.060.854
|
|
|
|
2,048,501
|
|
|
Income for the year before income tax from non-continuing operations
|
|
|
|
|
|
749.198
|
|
|
|
673,807
|
|
|
Income for the year before income tax
|
|
|
|
|
|
4.810.052
|
|
|
|
2,722,308
|
|
Adjustments to reconcile income for the year before income tax to
net cash flows:
|
|
|
|
|
|
|
|
|
|
|
Depreciation of property, plant and equipment
|
|
|
|
|
|
278.679
|
|
|
|
201,865
|
|
|
Loss on disposal of property, plant and equipment
|
|
|
|
|
|
559
|
|
|
|
2,570
|
|
|
Amortization of intangible assets
|
|
|
|
|
|
48.697
|
|
|
|
40,161
|
|
|
Discount of accounts receivable and payable, net
|
|
|
|
|
|
(51.838
|
)
|
|
|
(718,114
|
)
|
|
Interest earned from customers
|
|
|
|
|
|
(270.715
|
)
|
|
|
(108,423
|
)
|
|
Financial income
|
|
|
|
|
|
(932.227
|
)
|
|
|
(420,988
|
)
|
|
Financial expenses
|
|
|
|
|
|
697,977
|
|
|
|
634,903
|
|
|
Share of the profit of associates
|
|
|
|
|
|
(715,001
|
)
|
|
|
(147,513
|
)
|
|
Provision for materials impairment
|
|
|
|
|
|
23.300
|
|
|
|
-
|
|
|
Stock-based payments
|
|
|
|
|
|
2.942
|
|
|
|
-
|
|
|
Movements in provisions and long-term employee benefit plan expenses
|
|
|
|
|
|
102.470
|
|
|
|
102.982
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Working capital adjustments:
|
|
|
|
|
|
|
|
|
|
|
Increase in trade and other receivables
|
|
|
|
|
|
(1.057.029
|
)
|
|
|
(966.677
|
)
|
|
Increase in other non-financial assets and inventories
|
|
|
|
|
|
(376.674
|
)
|
|
|
822.394
|
|
Increase in trade and other payables, other non-financial
liabilities and liabilities from employee benefits
|
|
|
|
|
|
477.218
|
|
|
|
600.784
|
|
|
|
|
|
|
|
|
3.038.410
|
|
|
|
2.766.252
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest received from customers
|
|
|
|
|
|
76.198
|
|
|
|
70.234
|
|
|
Income tax and minimum presumed income tax paid
|
|
|
|
|
|
(725.625
|
)
|
|
|
(747.879
|
)
|
|
Net cash flows provided by operating activities
|
|
|
|
|
|
2.388.983
|
|
|
|
2.088.607
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investing activities
|
|
|
|
|
|
|
|
|
|
|
Purchase of property, plant and equipment
|
|
|
|
|
|
(3.483.521
|
)
|
|
|
(1.070.201
|
)
|
|
Upfront payments of property, plant and equipment purchases
|
|
|
|
|
|
-
|
|
|
|
(1.118.158
|
)
|
|
Dividends received
|
|
|
|
|
|
36.372
|
|
|
|
25.798
|
|
|
Interest received from financial assets
|
|
|
|
|
|
-
|
|
|
|
4.088
|
|
|
Sale of available-for-sale financial assets, net
|
|
|
|
|
|
1.129.860
|
|
|
|
207.670
|
|
|
(Purchase) from sale of investments in associates
|
|
|
|
|
|
(6
|
)
|
|
|
25.053
|
|
|
Net cash flows used by investing activities
|
|
|
|
|
|
(2.317.295
|
)
|
|
|
(1.925.750
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing activities
|
|
|
|
|
|
|
|
|
|
|
Banks overdraft (settlements) proceeds, net
|
|
|
|
|
|
(312.210
|
)
|
|
|
106.759
|
|
|
Bank loans received
|
|
|
|
|
|
1.871.894
|
|
|
|
868.789
|
|
|
Bank loans paid
|
|
|
|
|
|
(994.966
|
)
|
|
|
-
|
|
|
Borrowings received from CAMMESA
|
|
|
|
|
|
403.427
|
|
|
|
784.245
|
|
|
Repayment of corporate bonds
|
|
|
|
|
|
-
|
|
|
|
(743.087
|
)
|
|
Interest paid
|
|
|
|
|
|
(42.758
|
)
|
|
|
(64.157
|
)
|
|
Dividends paid
|
|
|
|
|
|
(1.279.393
|
)
|
|
|
(1.392.282
|
)
|
|
Contributions from non-controlling interests
|
|
|
|
|
|
295.412
|
|
|
|
6.724
|
|
|
Net cash flows (used in) financing activities
|
|
|
|
|
|
(58.594
|
)
|
|
|
(433.009
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Decrease in cash and cash equivalents
|
|
|
|
|
|
13,094
|
|
|
|
(270,152
|
)
|
|
Exchange difference and other financial results
|
|
|
|
|
|
45,531
|
|
|
|
7,671
|
|
|
Cash and cash equivalents as of January 1
|
|
|
|
|
|
30,008
|
|
|
|
292,489
|
|
|
Cash and cash equivalents as of December 31
|
|
|
|
|
|
88,633
|
|
|
|
30,008
|
|
|
|
|
|
|
|
|
d. Non-continuing operations
|
|
|
|
The results of La Plata plant for the years ended December 31,
2017 and 2016 are presented below:
|
|
|
|
|
|
|
|
|
|
2017
|
|
|
2016
|
|
|
|
|
|
|
|
Thousand Ps.
|
|
|
Thousand Ps.
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
2,196,746
|
|
|
|
1,757,692
|
|
|
Cost of sales
|
|
|
|
|
|
(1,427,906
|
)
|
|
|
(1,081,979
|
)
|
|
Gross income
|
|
|
|
|
|
768,840
|
|
|
|
675,713
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Administrative and selling expenses
|
|
|
|
|
|
(8,566
|
)
|
|
|
(15,221
|
)
|
|
Other operating income
|
|
|
|
|
|
-
|
|
|
|
27,770
|
|
|
Other operating expenses
|
|
|
|
|
|
(10,737
|
)
|
|
|
-
|
|
|
Operating income
|
|
|
|
|
|
749,537
|
|
|
|
688,262
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Finance expenses
|
|
|
|
|
|
(339
|
)
|
|
|
(14,455
|
)
|
|
Income before income tax for discontinued operations
|
|
|
|
|
|
749,198
|
|
|
|
673,807
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax for the year
|
|
|
|
|
|
(264,157
|
)
|
|
|
(235,833
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income of the period for discontinued operations
|
|
|
|
|
|
485,041
|
|
|
|
437,974
|
|
|
|
|
|
|
|
|
The classes of assets and liabilities of La Plata plant classified
as held for sale as of December 31, 2017 are, as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thousand Ps.
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment
|
|
|
|
|
|
|
|
|
|
|
|
116,923
|
|
|
Inventories
|
|
|
|
|
|
|
|
|
|
|
|
26,091
|
|
|
Assets held for sale
|
|
|
|
|
|
|
|
|
|
|
|
143,014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred income tax liabilities
|
|
|
|
|
|
|
|
|
|
|
|
6,282
|
|
|
Compensation and employee benefits liabilities
|
|
|
|
|
|
|
|
|
|
|
|
(4,411
|
)
|
|
Provisions
|
|
|
|
|
|
|
|
|
|
|
|
(131,032
|
)
|
|
Liabilities associated with assets held for sale
|
|
|
|
|
|
|
|
|
|
|
|
(129,161
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets held for sale
|
|
|
|
|
|
|
|
|
|
|
|
13,853
|
|
E. Information about the Conference Call
There will be a conference call to discuss Central Puerto’s fourth
quarter 2017 results on Tuesday March 13, 2018 at 12:00 p.m. New York
Time / 1:00 p.m. Buenos Aires Time.
The hosts will be Mr. Jorge Rauber, Chief Executive Officer, and Mr.
Fernando Bonnet, Chief Financial 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: 4665781
The Company will also host a live audio webcast of the conference call
on the Investor Relations section of the Company’s website at http://investors.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.
You may find additional information on the Company at:
F. 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.;
-
“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” 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).;
-
“LVFVD” refers to liquidaciones de venta con fecha de vencimientos
a definir, or receivables from CAMMESA without a fixed due date.;
-
“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.
-
“sales under contracts” refers collectively to (i) term market sales
of energy under contracts with private sector counterparties and
(ii) sales of energy sold under the Energía Plus;
-
“PPA” refers to capacity and energy supply agreements with customers;
-
“TGM” refers to Transportadora de Gas del Mercosur S.A.;
-
“YPF” refers to YPF S.A., Argentina’s state-owned oil and gas company;
G. Disclaimer
Additional information about Central Puerto can be found in the Investor
Support section on the website at www.CentralPuerto.com.
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.
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
non-continuing 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.
CONVENIENCE TRANSLATIONS
The translations into US dollars in the table under “D.2. Main
financial magnitudes – dollar translation of continuing operations”
(the “table D.2.”) have been made for convenience purposes only, and,
given the significant exchange rate fluctuation during 2016 and 2017,
you should not place undue reliance on the amounts expressed in US
dollars in the table D.2. In addition, we note that the percentage
variations in the table D.2. differ from the percentage variations set
forth in the table under “D.1. Main financial magnitudes of
continuing operations.” The US dollar translations should not be
construed as a representation that the peso amounts have been or may be
converted into US dollars at the rate indicated in the table above or at
any other rate.
View source version on businesswire.com: http://www.businesswire.com/news/home/20180312006310/en/
Copyright Business Wire 2018
Source: Business Wire
(March 12, 2018 - 8:34 PM EDT)
News by QuoteMedia
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