Central Puerto S.A. (NYSE:CEPU) Q3 2019 Earnings Conference Call - Final Transcript

Nov 12, 2019 • 05:00 pm ET

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Central Puerto S.A. (NYSE:CEPU) Q3 2019 Earnings Conference Call - Final Transcript

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Presentation
Executive
Jorge Rauber

to the same period of 2018, and 1.3% during the third quarter compared to the same period of last year across all business segments. An additional factor is the introduction of new renewable energy plants and efficient plants, including some of the ones that will help Central Puerto has and will be building.

As a matter of fact, we are proud to announce that we have increased our renewable energy generation more than 230% [Phonetic] during the third quarter as compared to the same period of 2018. During the quarter, La Castellana I and Achiras I wind farms, which started operations during August and September 2018 respectively, were fully operational and generated 155 gigawatt hours. Additionally, during the third quarter of 2019, the wind farms La Castellana II and La Genoveva II began Commercial Operation adding 56 megawatt to our renewable energy portfolio and generating 32 gigawatt hours during the first weeks of operation to supply large users under the Term Market regulatory framework (MATER).

We expect our production to grow in the coming quarters as we continue to execute our aggressive expansion plan. For example, we're pleased to announce that the new Lujan de Cuyo cogeneration unit started operation on October 5, seven weeks before the schedule agreed with CAMMESA adding 93 megawatt to our installed capacity. At any generation unit, this machine is among the most efficient of the system, with almost full dispatch during the whole year. We have good advances in our Terminal 6 San Lorenzo project II, our other joint cogeneration unit. This unit will be -- will add 330 megawatt or around 8% to our current installed capacity. And more importantly, will provide electricity energy and steam with high efficiency for our customers.

Finally, during the quarter, we continue with the construction of wind farms La Genoveva I which will sell electricity under the RenovAr 2.0 program, and Manque and Los Olivos which will sell electricity under the MATER framework. As of the date of this report, these last two projects have already signed long-term power purchase agreements with private customers for a 187% of their mean estimated electricity generation respectively. These are long-term bilateral contracts entered into directly with our customers with prices set in US dollars. Additionally, we continue with the collection of the monthly installments of the CVO agreement as scheduled. During July, we collected ARS825 million, including value-added tax related to the installments corresponding to the one -- the first and to the 10th of the CVO agreement.

Finally, during the quarter, CAMMESA made a general offer to all generators to cancel all the pending trade receivables accrued between 2013 and 2016 which excuse the funding and similar programs' trade receivables, after offsetting the balance of all loans and advance granted by them. This agreement included 18% reduction of the amount of principal plus accrued interests that CAMMESA owed to us. As a consequence of this transaction, the Company collected ARS1.6 billion, including the associated value-added tax.

And now, I