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
Fernando Bonnet

for the production of the steam or to replace the fuel provided by CAMMESA for the units under Energia Base, which totaled ARS1.2 billion during the third quarter of 2019 as compared to ARS500 million in the third quarter of 2018. And second, a 13% increase in non-fuel related cost of production, which totaled ARS2 billion in the third quarter of 2019, as compared to ARS1.7 billion in the third quarter of 2018. mainly related to the operation of Brigadier Lopez Plant acquired in the second quarter this year.

Operating income before operating results net increased 36% to ARS4 billion compared to ARS2.9 billion in the third quarter of 2018. This increase was due to the above-mentioned increase in gross profit and an approximately proportional increase in administrative and selling expenses total ARS592 million. a 37% increase as compared to ARS431 million in the third quarter of 2018.

Our adjusted EBITDA was around ARS14.1 billion in the third quarter of 2019, which includes ARS6.8 billion increase in interest and foreign exchange difference associated with the FONI and similar programs' trade receivables, which are -- which are denominated in US dollars. Without considering these effects, our adjusted EBITDA during the third quarter of 2019 was ARS7.3 billion, an increase of 97% as compared to ARS3.7 billion obtained in the same period of 2018 for the same metric. This increase was mainly driven by the increase in gross profit mentioned above and a ARS3.5 billion one-time gain in interests related to CAMMESA trade receivables collection that Jorge mentioned before. This was partially offset by ARS616 million in non-cash charge related to property, plant valuation at fair value.

The consolidated net income was ARS3.5 billion compared to ARS5.4 billion in the third quarter of 2018, will result in a gain of ARS27.7 per ADR. In addition to the above mentioned factors, net income was negatively impacted by the higher financial expenses, net of financial income that amount ARS8.8 billion in the third quarter of 2019, compared to ARS3.9 billion in the same period of 2018, mainly due to the interest and foreign exchange difference accrued on the higher net debt position during the period related to the loans obtained for the thermal and renewable energy expansion projects and the acquisition of Brigadier Lopez power plant, most of which are denominated in US dollars.

And finally, we had a gain on net monetary position of ARS700 million during the quarter as compared to a loss of ARS1.3 billion in the third quarter of 2018. Thank you. And now we invite you to ask any questions to our team.