Argentina's Central Puerto sees 9-mo profits plunge in 2019

Argentine power producer Central Puerto SA (BCBA:CEPU) posted a net profit of ARS 6.6 billion (USD 110.6m/EUR 100.4m) during the first nine months of 2019, which is a significant contraction compared to ARS 24.2 billion in the same period last year.

The company said Monday its profits were affected by higher financial expenses due to interest rates applied on loans for thermal and renewable energy projects, the acquisition of a combined cycle power plant, among other factors. Also, Central Puerto recorded gains of ARS 15.2 billion before tax in the same period of 2018, making this year’s profit comparably lower.

Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) was down 41% year-on-year to ARS 24.3 billion.

Revenues were up by 70% to ARS 22 billion, partially supported by contributions from two wind farms commissioned last year and fully running throughout the nine-month reporting period of 2019, as well as new wind assets, which were put online during this third quarter.

The company recorded a gross profit of ARS 10.6 billion, representing a 53% increase.

Central Puerto’s capacity and production figures for the first nine months of 2019 are presented in the table below:

The nine-month reporting period was marked by the commissioning of the 14.4-MW La Castellana II and the 41.8-MW La Genoveva II wind farms. The electricity from these parks in 100% contracted and their output is sold to large private users under Argentina’s MATER framework.

Construction of the 88.2-MW La Genoveva I, the 57-MW Manque and the 22.8-MW Los Olivos wind farms is in progress, Central Puerto said.

(ARS 100 = USD 1.68/EUR 1.52)

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