Central Puerto S.A. (NYSE:CEPU) Q2 2020 Earnings Conference Call - Final Transcript

Aug 27, 2020 • 10:00 am ET

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Central Puerto S.A. (NYSE:CEPU) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good morning, and welcome to the Central Puerto Conference Call following the results announcement for the quarter ended on June 30, 2020. All participants will be in listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. Please note this event is being recorded. 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 webcast of the Investor Support section of the Central Puerto corporate website.

Before we proceed, please be aware that all financial figures were prepared in accordance with IFRS, and stated in Argentinean pesos, unless otherwise noted. It's worth noting that the financial statements for the quarter ended on June 30, 2020 include the effects of the inflation adjustment. Accordingly, the financial figures mentioned during the call, including the data from previous periods in growth comparisons have been stated in terms of Argentinian pesos of the end of the reporting period.

Also, please note that certain statements made by the company during the conference call are forward-looking statements and we refer you to the forward-looking statements section of our earnings release, recent filings with the SEC. Central Puerto assumes no obligation to update forward-looking statements, except as required under applicable security laws. For following the discussion better, please download the webcast presentation available on the company's website. 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 Operating Officer; Milagros Grande, Financial Manager; and Tomas Daghlian, Investor Relations Officer.

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

Executive
Jorge Anibal Rauber

Thank you very much. Good morning. I would like to begin today's call analyzing the developments of the second quarter, comment on the advances of our expansion projects, and analyze the operative figures of the quarter. Fernando will then analysis the financial results of the quarter and will answer any questions that you may have.

As you know, the COVID-19 crisis has affected almost all the world, including Argentina. The mitigation measures issued by the federal government such as the stay-at-home order or quarantine have remained in place, although some degree of flexible [Phonetic] and exception have recently been approved.

As a consequence, as you can see on Page 3, electric energy demand decreased 11% in April and 7.6% in May 2020, as compared to the same month of the prior year. However, demand increased 1.2% in June, due to higher economic activity and lower average temperatures. Therefore, during the second quarter 2020, electricity demand decreased 5.5% as compared to the same period of the prior year. Additionally, in July demand increased 1.5%. However, it's worth noting that the decrease has a less than proportional impact in the income of the generation companies. In the