CEPU — Central Puerto S.A.

Central Puerto (CEPU) Q1 2026 Earnings Call Summary

1. Key Financial Results and Metrics:

• Adjusted EBITDA: $120.0 million, a 41.6% increase quarter-on-quarter (from $84.7 million in Q4 2025) and a 33.4% increase year-on-year (from $89.9 million in Q1 2025).
• Revenues: $248.6 million, up 43.8% quarter-on-quarter and 26.7% year-on-year, driven by higher contracted and spot revenues.
• Total Generation: 5,420 GWh, a 54.2% increase quarter-on-quarter, attributed to restored capacity and new generation assets.
• Net Financial Debt: $390.8 million, with a net financial leverage ratio of 1.06x.
• Capital Expenditures: $311.0 million, including significant investments in the Piedra del Aquila concession and battery energy storage systems (BESS).

2. Strategic Updates and Business Highlights:

• Concession Renewal: Secured a 30-year renewal for the Piedra del Aquila hydro asset, enhancing long-term operational stability.
• BESS Project: 60% of site works completed, with ongoing development expected to contribute to future revenues.
• Market Positioning: Achieved leading market shares in contracted capacity and energy segments, with 44% of Q1 revenues from contracted sales.
• Acquisition: Completed the acquisition of Patagonia Energy S.A. for $50 million, positioning CEPU to explore oil potential in the Vaca Muerta region.

3. Forward Guidance and Outlook:

• Operational Expectations: Continued revenue and EBITDA growth anticipated through 2026, driven by ongoing market normalization and contracting opportunities.
• PPA Growth: Expected increase in Power Purchase Agreements (PPAs) with distribution companies, aiming to transition more from the spot market.
• BESS Progress: Anticipated commercial operations for BESS projects by mid-2027.

4. Bad News, Challenges, or Points of Concern:

• Gas Transportation Capacity: Limited success in securing gas transportation capacity through recent auctions, which may impact operational flexibility during peak demand periods.
• Market Transition: The shift from spot to contracted sales is gradual, and there are uncertainties regarding the pace of this transition.
• Dependence on CAMMESA: Continued reliance on CAMMESA's Plan Gas for fuel procurement, with challenges in accessing private gas producers.

5. Notable Q&A Insights:

• Contracting Strategy: Management confirmed that while capacity is fully contracted, there is ongoing negotiation to increase energy contracts with distribution companies, with expectations for progress in 2026.
• Fuel Procurement: Discussions are ongoing with gas producers to secure direct gas purchases, moving away from reliance on CAMMESA.
• Vaca Muerta Development: Plans for drilling in Vaca Muerta are in early stages, with estimated costs of approximately $17 million per well, but timelines remain uncertain.
• Market Pricing: Current dispatch prices in the spot market are around $40,000 per megawatt, influenced by fuel type and equipment efficiency.

Overall, Central Puerto's Q1 2026 results reflect strong operational performance and strategic advancements, although challenges remain in gas procurement and market transition. The outlook for the year appears positive, contingent on successful execution of contracting strategies and project developments.