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

Nov 12, 2019 • 05:00 pm ET


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


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Good morning, and welcome to the Central Puerto Conference Call following the results announcement for the quarter ended on September 30, 2019. [Operator Instructions]

If you do not have a copy of the press release, please refer to the Investor Support section on the Company's corporate website at www.centralpuerto.com. A replay of today's call may be accessed by accessing the website in the Investor Support section of the Central Puerto corporate website.

Before we proceed, please note that certain statements made by the Company during this conference call are forward-looking statements and we refer you to the Forward-Looking Statements section of our earnings release and recent filings with the SEC. Central Puerto assumes no obligation to update forward-looking statements except as required under applicable securities laws.

In addition, all financial figures were prepared in accordance with IFRS and are stated in Argentinian pesos unless otherwise noted. Please be aware that some of the numbers mentioned during the call may be rounded in order to simplify the discussion.

On the call today from Central Puerto is Jorge Rauber, Chief Executive Officer, Fernando Bonnet, Chief Financial Officer; Milagros Grande, Financial Manager; and Tomas Daghlian, Investor Relations Officer.

And now, I will turn the conference over to Jorge Rauber. Mr. Rauber, you may begin.

Jorge Rauber

Thank you. We are joining you today with our management team from Buenos Aires, Argentina, to report on the results of the third quarter 2019 and to answer any questions you may have. As you may know, following the Presidential election on October 27, the new administration would take office on the December 10. We will keep you informed of any relevant policy changes that may be implemented.

But first, I will refer first to the operative figures of the quarter and then continue with some recent news regarding third quarter. Finally, Fernando will analyze the financial results of the quarter. During the period, our equipment continue to show an excellent track in terms of reliability as the availability of our thermal units remained higher, maybe 5%, a similar level to the one obtained during the same quarter of 2018 figures, 9-percentage point above the average availability of thermal units for the total market showing Central Puerto's competitive advantage.

Regarding energy generation during the third quarter, we generated 3.9 terawatt hours of electricity, a 1% [Phonetic] higher than the second quarter of 2018 and 11% lower than the third quarter of 2018. This decrease was first due to the less water inflow from the Limay River and Collon Cura rivers, which decreased 6% the generation from our hydro plant Piedra del Aguila, and second, due to the energy generation from our thermal units decreased 18% because of the scheduled maintenance during September of the steam turbine number 6 of the Puerto Complex which implied a reduction of 119 gigawatt hours during that month, and a lower dispatch of some of our smaller steam turbines. As a reference, electricity demand decreased 5.3% in the first nine months of 2019, as compared