CEPU — Central Puerto S.A.

Central Puerto (CEPU) Q3 2025 Earnings Call Summary

1. Key Financial Results and Metrics:

• Adjusted EBITDA: $101.1 million, a 64% increase quarter-on-quarter and an 8% increase year-on-year.
• Revenues: $233.9 million, up 30% quarter-on-quarter, driven by higher contract sales from renewables and thermal sources.
• Total Generation: 4,539 GWh, a 4% increase quarter-on-quarter but a 20% decrease year-on-year due to lower hydrology at Piedra del Aguila.
• Net Leverage Ratio: 0.5x, indicating a strong balance sheet.
• Cash and Cash Equivalents: $292 million, with total financial debt at $452 million.
• Capital Expenditures: $76.1 million for the quarter, including the acquisition of Cafayate solar farm for $48.5 million.

2. Strategic Updates and Business Highlights:

• Successfully acquired the Cafayate solar farm, adding 80 MW of capacity.
• Awarded two projects under the AlmaGBA Battery Energy Storage System tender, totaling 205 MWh, expected to be operational by mid-2027.
• Central Costanera resumed activities post-maintenance, contributing positively to thermal generation revenues.
• The Energy Secretariat's Resolution 400/25 is expected to liberalize the power market, enhancing revenue potential and reducing currency risk.

3. Forward Guidance and Outlook:

• Anticipated EBITDA increase of 20-25% due to market deregulation, translating to an additional $70-$80 million annually.
• Positive outlook for 2026, driven by the liberalization of the market and new capacity coming online.
• Expected additional EBITDA contributions from Brigadier Lopez ($60-$65 million) and San Carlos ($3-$5 million) once operational.

4. Bad News, Challenges, or Points of Concern:

• Total generation decreased year-on-year by 20%, primarily due to hydrology issues.
• The market is still adjusting to new regulations, creating uncertainty in pricing and contracting, particularly with large users.
• The company is cautious about immediate asset reallocation or sales, indicating a wait-and-see approach to market conditions.

5. Notable Q&A Insights:

• Management expects a 20-25% EBITDA increase from market deregulation, with potential for further improvement if they successfully contract the 20% of production to large users.
• There is uncertainty regarding future auctions for distribution companies, with management indicating ongoing discussions but no centralized auction planned.
• Short-term thermal market prices may stabilize around $55-$60 per MWh, but long-term prices are expected to remain stable due to increasing demand.
• CapEx for 2026 is projected at $130-$140 million for awarded battery projects, with no significant CapEx anticipated for existing projects post-completion.

This summary encapsulates Central Puerto's financial performance, strategic initiatives, and market outlook while addressing potential challenges and insights from the Q&A session.