A conference call to discuss the FY 2023 and 4Q23 results will be held on
Financial statements as of
Definitions and terms used herein are provided in the Glossary at the end of this document. This release does not contain all the Company's financial information. As a result, investors should read this release in conjunction with
A. Regulatory Updates and Relevant Facts
Resolution SE N-degree869/2023 : On
Resolution SE N-degree9/2024 : On
Resolution SE N-degree621/2023: On
The tender was divided into: Thermal Generation for reliability and supply of interconnected system ('SADI') targeting 2,250 MW to 3,000 MW, and, Thermal Generation to replace and make the Tierra del Fuego power generation system more efficient. Targeting 30 MW to 70 MW.
And into subcategories that have a limit power to be awarded: Line 1.0: Power increase of existing combined cycles.
Line 1.1: Improvement of supply reliability in critical areas.
Line 1.2: Improvement of regional supply reliability.
Line 1.3: Improvement of general supply reliability.
As part of the bidding process, the group presented projects in
Submission of bids took place on
Proener acquires solar power plant 'Guanizuil II A'.
On
The Guanizul II A solar power plant is located in the province of San Juan and has a nominal rated power capacity of 104.6 AC, generating approximately 300 GWh/year. The plant counts with 358,560 solar panels and covers a total area of 270 hectares, being the third largest solar park in
In addition, the Guanizul II A solar power plant has a capacity factor of 33%, exceeding the average for the region and positioning it as one of the farms with the best capacity factor in the world, which allows it to produce energy to supply the demand of approximately 86,000 homes.
The remuneration scheme of the power plant is a PPA with CAMMESA under the Program Renov.ar 2.5 for 20 years.
The Company considers the acquisition of its first photovoltaic technology park represents another milestone in the diversification of its energy matrix within the framework of the Company's expansion strategy and consolidation in the renewable energy market. Thus,
Debt issuances
On
On
Partial pre-payment of syndicated loan
On
Dividend payments
On
On
On
On
Installed Power Generation Capacity: During 2023 , the country's installed generation capacity increased by 2% or 847 MW reaching 43,773 MW, compared to 42,926 MW in 2022. The increase in system's capacity was mainly due to the incorporation of 685 MW (+14%) from renewable sources of which 396 MW corresponds to new wind farms, 280 MW to solar photovoltaic projects, 6 MW to biogas and 3 MW of biomass. In turn, thermal capacity sources recorded a net increase of 162 MW (+1%) as a combination of an addition of 735 MW on new combined cycles and a decrease of 537 MW and 36 MW in gas turbines and diesel engines respectively.
Power generation & demand: In 4Q23 , energy generation dropped 4% to 33,258 GWh, compared to 34,572 GWh in 4Q22, in line with the 4% decrease in energy demand, which was essentially driven by a 5% decline in residential consumption on the back of milder temperatures during the period.
The lower demand of the period was mainly covered with an increase in nuclear (+7% y/y), hydro (+5% y/y) and renewable (+2% y/y) generation, resulting in a lower thermal requirement (-14% y/y).
In the first case, the increase in generation was a direct result of the re-commissioning of the Atucha II power plant as previously explained and the higher generation from Embalse, which was in maintenance shutdown during the same period 2022. With regards to the increase hydro generation, this was mainly due to the higher river flow rates, especially the
During 4Q23,
It should be noted that this increase includes the consolidation of the energy generated by
In 4Q23, the increase in hydro energy generation from
With regards to renewables, energy generation increased by 12% in 4Q23 vis-a-vis 4Q22, being fully explained by the incorporation of the 73 GWh generated by Guanizuil II A solar plant and being partially offset by a 5% contraction in wind generation as a result of lower wind resource during the period.
Regarding thermal generation, it increased by 5% in 4Q23 compared to 4Q22, as a result of the acquisition of
Finally, steam production increased 25% during 4Q23, explained by a 29% increase in San Lorenzo cogeneration plant and a 23% increase in
D. FY & 4Q23 Analysis of Consolidated Results
Important notice: 'The results presented for the annual period 2023 and 4Q23 are negatively affected, at a non-cash level, as a consequence of the sharp devaluation of the local currency occurred in mid-December, in
A
A 21% or
A 19% or
iv. A 15% orUS$0.7 million decrease in steam sales, which totaledUS$3.8 million in the 4Q23 compared toUS$4.5 million in the 4Q22, despite a 25% increase in volumes being fully explained by the aforementioned non-cash effect between inflation and currency devaluation.
Operating cost, excluding depreciation and amortization, in 4Q23 amounted to
The decrease is basically explained by the aforementioned effect between inflation and currency devaluation and the reclassification of consumption of materials and spare parts allocated to the maintenance works carried on the cogeneration units of
Other than the aforementioned effects, production costs increased by 11% or
In addition, SG&A, excluding depreciations and amortizations, increased by 9% or
Other operating results net in 4Q23 were positive in
In addition, during the quarter a recovery of impairment of property, plant and equipment and intangible assets was recorded for
Consequently, Consolidated Adjusted EBITDA ( [1] ) amounted to
Consolidated Net financial results in 4Q23 were negative in
Loss on net monetary position in 4Q23 measured in US dollars amounted to
Profit on associate companies was positive on
In addition, during 4Q23 the Company recorded a gain as a result of the valuation at fair value of the companies acquired during the period for
Income tax in 4Q23 resulted in a positive
Finally, Net Income in 4Q23 amounted to
FONI program collections associated to the receivables from the Vuelta de Obligado plant totaled
Glossary
In this release, except where otherwise indicated or where the context otherwise requires: 'BCRA' refers to Banco Central de la
Disclaimer
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.
OTHER INFORMATION
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, whichmay cause the actualresults, 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 www.sec.gov ).
EBITDA & ADJUSTED EBITDA
In this release, EBITDA , a non-IFRS financial measure, is defined as net income for the period, plus finance expenses, minus finance income, minus share of the profit (loss) of associates, plus (minus) losses (gains) on net monetary position, plus income tax expense, plus depreciation and amortization, minus net results of discontinued operations.
Adjusted EBITDA refers to EBITDA excluding impairment on property, plant & equipment, foreign exchange difference and interests related to FONI trade receivables and variations in fair value of biological asset.
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, working capital needs or contractual commitments; Adjusted EBITDA does not reflect the finance expenses, or the cash requirements to service interest or principal payments on indebtedness, or interest income or other finance income; Adjusted EBITDA does not reflect income tax expense or the cash requirements to pay 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.
Contact:
Tel: (+54 11) 4317 5000
Email: inversores@centralpuerto.com
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