Central Puerto S.A. (NYSE:CEPU) Q3 2022 Earnings Call Transcript

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Fernando Bonnet: Okay. In terms of, well depend on the units. In terms of steam device we need to do some maintenance in terms of keep them operating in operation and we expect to have some maintenance related to the T6, the Steam Terminal 6 and we expect to have a maintenance of our combined cycle, not next year. I want to say the combined cycle, not next year, the next one in 2024. And we are discussing with the government additional remuneration to do those maintenance, especially the combined cycle, which is €“ which imply a life extension in fact. So we need to perform maintenance in the boiler and big maintenance in the boiler. And we are talking with the government and related to have an additional remuneration to cover that, that life extension maintenance.

It’s the same, it’s not only Central Puerto, it’s the same of all the combined cycle that were installed in late-90s, at the beginning of 2000. All these combined cycle are reaching the lifetime limit, so they need an extension and because of that all the generators are working together. So will have a remuneration or additional remuneration to cover those maintenance. But this is more or less what we are talking about in terms of maintenance. The combined cycle of Mendoza, the lifetime extension comes in 2025. So we are not expecting big maintenance on this combined cycle for these two years to come.

Unidentified Analyst: Okay. So if I understand correctly, it’s like an additional payments only for maintenance is not like that you’re expecting like less remuneration to go about inflation, is that right?

Fernando Bonnet: No. Yes. That are two parts of the remuneration. We are, of course talking with the government in terms of increased or to maintain the remuneration in real terms, but we are talking about additional maintainer. This is for their normal operations. So we are talking with the environment related to additional increase in this year, for the resolution to 138. That implies the maintenance and the operation, the current maintenance and the current operation not implies, and life extension of the combined cycles. In that sense, we expect, we don’t have a confirmation yet, but we expect another increase in the Energia asset prices for this year. And we are talking about what’s going to happen in next year trying to set some increases in advance, not working below the inflation that what’s happened this year. So we are working towards that. We expect to have a confirmation for a new increase this year and then set a path of increases for the next one.

Unidentified Analyst: Okay, very helpful. And my last question then if you are considering paying dividends next year?

Fernando Bonnet: Yes, that is under analysis. And we are giving all the information and all the consideration related to that to our shareholders and it’s a possibility, yes not close yet, but we need to discuss that with our shareholders. But it’s a possibility Central Puerto has a positive cash flow generation, so it’s a possibility. Yes.

Unidentified Analyst: Well thank you very much for your time and that follow on my side.

Fernando Bonnet: Thank you for your question.

Operator: Okay, there appears to be no further questions in the queue. This concludes our question-and-answer session. I would like to turn the conference back over to Mr. Bonnet for any closing remarks.

Fernando Bonnet: Thank you to everyone for your interest in Central Puerto. We encourage you to call us for any information that you may need. Have a great day.

Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.

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