Central Puerto's Q4 2024 Earnings Call: Unraveling Contradictions in Hydro Auctions, CAMMESA Payments, and Investment Strategies

These are the key contradictions discussed in Central Puerto's latest 2024Q4 earnings call, specifically including: Hydro Auctions, CAMMESA Payments, Investment Plans, and Capacity Expansion Initiatives:



Financial Performance and Revenue Growth:
- Central Puerto reported revenues of $168 million for Q4 2024, up 71% year-over-year, and an annual figure of $671 million, a 25% increase.
- The growth was driven by a cash effect on the gap between currency devaluation and spot remuneration increases, higher thermal generation, and a non-cash effect on the gap between currency devaluation and inflation.

Energy Generation Increase:
- Energy generation rose to 5.4 terawatt-hour during the fourth quarter, up 5% year-over-year, with annual generation growing 4% to 21.6 terawatt-hour.
- This increase was mainly due to higher thermal generation, particularly at steam turbines, the Brigadier Lopez open cycle plant, and the Costanera Mitsubishi combined cycle.

Regulatory Updates and Industry Changes:
- Spot prices adjusted monthly, with increases of 3%, 6%, and 5% in October, November, and December 2024, respectively, and a 10% increase expected for Q1 2025.
- Resolution 294 established a contingency plan for the electricity industry, and Resolution 21 deregulated certain aspects, enabling new thermal power plants to sign PPAs with private agents and fuel management for generators.

Infrastructure and Mining Investments:
- Central Puerto announced a high-voltage transmission line project for the Puna region, with agreements signed with IFC and YPF Luz for feasibility studies and project development.
- The company invested in mining projects, acquiring a 27.5% stake in Tres Cruces lithium project and increasing its equity in AbraSilver, without planning for additional CapEx in 2025.