Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| However, as you can see, Central Puerto thermal availability remains high when compared to market average, reflecting our high quality standards and operation policies as well as equipment efficiency |
| Moving on to the next slide, consolidated net income for the quarter amounted to $155.8 million increasing by almost 10x on a year-over-year basis despite of the lower adjusted EBITDA of the period, the net income was positively impacted by a $144 million increase related to non-cash effects being the most notorious the recovery of impairment of property, plant, equipment and intangible assets of $54.4 million as opposed to the negative charge of $79.2 million recorded in the last quarter '22 and the $5 million increase in the fair value of our biological assets |
| Furthermore, energy generation amounted to almost 21 terawatts per hour in 2023 and 5.2 terawatts per hour in the quarter, increasing by 19% and 10%, respectively, with regards to the same period of last year |
| In the fourth quarter of 2023, the increase in hydro energy generation from Piedra del Aguila was once again noteworthy reaching 1.7 terawatt hour and a standing 21% above the last quarter of 2022 levels |
| This way, operating cash flow was positive in $222 million due to an adjusted EBITDA generated in the period, a $52.5 million in collection of interest from client, including those related to funding program and almost $10 million in positive working capital variations, partially offset by a $65 million payment of income tax |
| Finally, after a satisfactory year in terms of our management of our debt profile and dividend distribution, net debt as of December 31 amounted to $244 million showcasing a net debt leverage ratio of only 1x |
| Net income was positive in $193 million and $155.8 million in 2023 and fourth quarter 2023, respectively, affected by onetime effects that impacted positively in the last quarter of the year, and we will see in detail in the later presentation |
| Finally, thermal capacity sources recorded a net increase of 162 megawatts as a combination of an addition of 735 megawatts of new combined cycles under the commissioning of 537 megawatts and 36 megawatts in gas turbines and diesel engines, respectively |
| As you can see, the company has actively worked on this relief and to improve its balance sheet that despite EBITDA distribution, our net debt leverage ratio remains at a low of 1 time net debt EBITDA |
| As you may know, with the acquisition of Central Costanera performed at the beginning of the year, the one is also solar farm on October 2023, the group's installed capacity has jumped by 49% year-over-year to 7.2 gigawatts of internal capacity |
| As we can see in Slide 6, the country's instant generation capacity increased by 2% or 847 megawatts, reaching 43.8 gigawatts, compared to 42.9 gigawatts in the last quarter 2022 |
| Finally, renewable energy generation increased by 12% in 4Q '23 vis-a-vis 4Q '22 being fully explained by the 73 gigawatt hour generated by the Guanizuil II A solar plant, which was partially offset by a 5% contraction in wind generation as a result of lower wind resource during the period |
| Then higher positive foreign exchange differences and interest related to the foreign receivables for $72 million and a $21 million increase due to the gain recorded as a result of the valuation at fair value of the companies that were acquired during the period for almost $90 million in comparison with the also positive gain that was recorded in the fourth quarter of 2022 of around $69 million |
| Thus, during 2023, the Central Puerto Group has become the largest private energy generation company in Argentina, both in terms of its capacity and energy generation completing a diversified portfolio of assets across all power generation technologies |
| And speaking specifically of the last quarter of this year, the Uruguay river recorded an increase of 4 84% in its flow rate, while the Neuquen and Limay rivers rose their flows rates by 49% and 37% year-over-year, respectively |
| To conclude with the presentation, in this slide, I would like to bring to you our debt maturity scale, but in particular, I would like to highlight the successful liability management carried out during October that considerably elevated our debt maturities for the year 2024 |
| This was all being partially offset by a $69.8 million increase in net negative financial results, mainly driven by higher negative foreign exchange differences on financial liabilities, partially offset by better results from holding financial assets at fair value and better results on asset sheets |
| As a result, Limay and Collon Cura hydro plants have been generating significantly more in 2023 vis-a-vis 2022 |
| Pablo Calderone Thank you very much, and good morning to you all |
| Then a $4.8 million increase in other operating results excluding interest and FX differences from the FONI program receivables and the valuation in fair value of biological assets from our Forestry segment |
| Have a great day |
| As a direct result, all the increasing from the flows of Limay and Collon Cura rivers 37% and 13%, respectively, compared to the fourth quarter of 2022 |
| So we expect another expansion |
| These not only permitted us to refinance short-term debt maturities, extended its life and reducing financial costs, but also help us to lift dividend payment restrictions that were imposed as covenants of the syndicated loan |
| It should be noted that this increase includes the incorporation of 856 gigawatts hour generated by Central Costanera, which was acquired in February 2023 as well as the 73 gigawatts hour produced by Guanizuil II a solar farm acquired last October, which were not part of the good half of the fourth quarter of 2022 |
| Biogas and biomass slightly increased during the quarter, adding 6 megawatts and 3 megawatts respectively |
| This increase in capacity was mainly due to the incorporation of 396 new megawatts of wind technology and 280 new megawatts of solar photovoltaic projects |
| Thank you for your attention |
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| It was essentially driven by a 5% decline in residential consumption on the back of middle temperatures during the period, especially in December when consumption fell by 10% with respect to 2022 |
| Thus, on a consolidated basis, the adjusted EBITDA of the quarter recorded a contraction of 34% compared to the $68.1 million in the fourth quarter 2022 |
| In that connection, revenue for the year amounted to $537 million decreasing 5% compared to 2022 and $298 million in the quarter, contracting 19% compared to the same periods of the previous year, while adjusted EBITDA reached $277 million showing a 35% decrease versus 2022 and $45 million in the quarter, being 34% lower to the last quarter of 2022 |
| Finally, a 15% or $0.7 million decrease in steam sales, which totaled $3.8 million in the quarter compared to $4.5 million in the last quarter 2022 despite a 25% increase in volumes being fully explained this by the non-cash effect between inflation and currency devaluation |
| As previously stated, higher availability of hydro and nuclear generation and as well as the lower energy demand during the period prompted lower thermal dispatch |
| The thing is what's going to happen in March this month, I think is the one that we see some perhaps doubts about how many money will come from the government |
| With regards to industrial demand, this contracted by 5% as a consequence of a lower economic activity in the period |
| Regarding energy generation in the last quarter of the year, this dropped 4% to 34.8 terawatts hour compared to 35.1 terawatts in the last quarter of 2022, in line with the 4% decrease in energy demand |
| Thus, having in mind this effect, the variation in revenues result from a combination of a $2 million sales contribution for the forestry companies that were acquired in December '22 and in May 2023, 11% or $11.6 million decrease in sales under contract, which totaled $42.7 million in the quarter compared to $54.3 million in the last quarter of 2022 mainly as explained by the previously mentioned effect between inflation and currency devaluation and to a lesser extent to a lower generation from our wind farms on the back of lower wind results |
| When analyzing the adjusted EBITDA variations, we can observe that this is mainly explained by the first, the previously mentioned drop in revenues and 13% of $5.8 million reduction in cost of sale as played basically by the previous mentioned effect between inflation and currency devaluation, the reclassification of consumption of certain materials and spare parts allocated to the maintenance works allowed on the cogeneration units of Lujan de Cuyo, both were partially offset by higher employee compensation, energy purchases and material consumption and spare parts due to the acquisitions |
| It should be noted that the gap between inflation and the valuation in the period has negatively affected the 4Q '23 figures at a non-cash level due to the company's accounting methodology and the conversion into dollars using the end of period official exchange rate, making the comparison with the previous year more complex to analyze |
| The lower demand of the period was mainly covered with more generation of nuclear, hydro and renewable sources resulting in a lower thermal requirement |
| Focusing now on demand, as you can see, electricity consumption decreased 4% during the last quarter of the year compared to the last quarter of 2022 |
| As you know, the generators are worried about that and how they're going to move all the investments, all the payment that we need to make in terms of CapEx, in terms of, of course, salaries and operational costs, and we pass the worry to the government |
| All these being fully offset by the fact between inflation and currency devaluation that was mentioned before and a lower remuneration in dollars, capital with lower generation from thermal units on the back of the lower demand of the period and the higher availability of hydro and renewable resources |
| Net cash flow in financing activities was negative in $135 million as a result of $156 million in debt service amortization primarily related to the precalculation of the Brigadier Lopez plant and the principal maturities of Manque and Olivos dollar-linked bond and some overdraft cancellations, $41 million paid in interest and other financing costs and the $29 million paid in dividends during the quarter, being all partially offset by $103 million in financings obtained in the period, mainly from the issuance of the senior notes Series A for $47.2 million and Series B for $58 million |
| Then a 19% or $11.3 million contraction in spot legacy sales, which amounted to $48.1 million in the last quarter of 2023 compared to $59.4 million a year ago, driven by a combination of the consolidation of Central Costanera figures, which contributed with sales of $13.4 million and higher energy dispatch from Piedra del Aguila hydro plant |
| While river flows were still affected by the draft that impacted the country in 2022 |
| The increase in hydro generation is a phenomenon that started by mid-2023 due to higher rainfall in comparison to the year 2022, a year that was particularly affected by a severe drop |
| Have you been able to talk to CAMMESA regarding payments? Do you expect a soon improvement? And also could you comment on a possible indexation of less in relation to inflation so as to not depend on price hikes by our solutions? Fernando Bonnet As you mentioned, the payments of CAMMESA are coming less frequent than in the past, especially after devaluation, the total amount of the whole building for the electricity sector goes high and the payment of the distribution company is coming in less amount, because they're going to receive also an increase |
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