CENTRAL PUERTO S.A. Central Puerto S.A.
Consolidated financial statements for the year ended December 31, 2023, together with the independent auditor´s report
- 1 -
English translation of the consolidated financial statements originally filed in Spanish with the Argentine Securities Commission ("CNV").
In case of discrepancy, the consolidated financial statements filed with the CNV prevail over this translation
CENTRAL PUERTO S.A.
Registered office: Av. Edison 2701 - Ciudad Autónoma de Buenos Aires - República Argentina
FISCAL YEAR N° 32 BEGINNING JANUARY 1, 2023
FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2023
CUIT (Argentine taxpayer identification number): 33-65030549-9.
Date of registration with the Public Registry of Commerce:
- Of the articles of incorporation: March 13, 1992.
- Of the last amendment to by-laws: December 29, 2022.
Registration number with the IGJ (Argentine regulatory agency of business associations): 1.855, Book 110, Volume A of Corporations.
Expiration date of the articles of incorporation: March 13, 2091.
The Company is not enrolled in the Statutory Optional System for the Mandatory Acquisition of Public Offerings.
CAPITAL STRUCTURE
(stated in pesos)
Subscribed, paid-in, issued and registered | ||||||
Outstanding | Treasury | |||||
Class of shares | shares | shares | Total | |||
1,514,022,256 common, outstanding book-entry shares, | ||||||
with face value of 1 each and entitled to one vote per | ||||||
share. | 1,502,744,633 | 11,277,623 | 1,514,022,256 |
- 2 -
English translation of the consolidated financial statements originally filed in Spanish with the Argentine Securities Commission ("CNV").
In case of discrepancy, the consolidated financial statements filed with the CNV prevail over this translation
CENTRAL PUERTO S.A.
CONSOLIDATED STATEMENT OF INCOME for the year ended December 31, 2023
Notes | 2023 | 2022 | ||
ARS 000 | ARS 000 | |||
Revenues | 5 | 313,568,164 | 315,744,637 | |
Cost of sales | Exhibit F | (210,166,444) | (166,051,558) | |
Gross income | 103,401,720 | 149,693,079 | ||
Administrative and selling expenses | Exhibit H | (31,753,694) | (23,253,248) | |
Other operating income | 6.1 | 237,706,231 | 111,837,412 | |
Other operating expenses | 6.2 | (15,128,790) | (1,875,144) | |
Reversal of impairment / (impairment) of property, plant and | ||||
equipment and intangible assets | 2.3.8 | 43,994,536 | (43,670,460) | |
Operating income | 338,220,003 | 192,731,639 | ||
Loss on net monetary position | (126,511,590) | (94,864,437) | ||
Finance income | 6.3 | 230,203,826 | 79,527,910 | |
Finance expenses | 6.4 | (356,774,380) | (135,316,228) | |
Share of the profit of associates | 3 & Exhibit C | 6,115,780 | 347,325 | |
Result from acquisition of investments in companies | 2.3.20 | 72,645,358 | 37,911,293 | |
Income before income tax | 163,898,997 | 80,337,502 | ||
Income tax for the year | 7 | (17,938,127) | (20,927,229) | |
Net income for the year | 145,960,870 | 59,410,273 | ||
Attributable to: | ||||
- Equity holders of the parent | 148,043,845 | 59,293,545 | ||
- Non-controlling interests | (2,082,975) | 116,728 | ||
145,960,870 | 59,410,273 | |||
Basic and diluted earnings per share (ARS) | 8 | 98.52 | 39.39 | |
- 3 -
English translation of the consolidated financial statements originally filed in Spanish with the Argentine Securities Commission ("CNV").
In case of discrepancy, the consolidated financial statements filed with the CNV prevail over this translation
CENTRAL PUERTO S.A.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME for the year ended December 31, 2023
Notes | 2023 | 2022 | |||
ARS 000 | ARS 000 | ||||
Net income for the year | 145,960,870 | 59,410,273 | |||
Other comprehensive (loss) income for the year | |||||
Other comprehensive (loss) income not to be reclassified to | |||||
income in subsequent periods | |||||
Remeasurement of losses from long-term employee benefits | 11.3 | (1,155,337) | (731,366) | ||
Income tax related to remeasurement of losses from long-term | |||||
employee benefits | 7 | 404,369 | 255,977 | ||
Other comprehensive (loss) income not to be reclassified to | |||||
income in subsequent periods | (750,969) | (475,389) | |||
Other comprehensive (loss) income for the year | (750,969) | (475,389) | |||
Total comprehensive income for the year | 145,209,901 | 58,934,884 | |||
Attributable to: | |||||
- Equity holders of the parent | 147,292,876 | 58,818,156 | |||
- Non-controlling interests | (2,082,975) | 116,728 | |||
145,209,901 | 58,934,884 | ||||
- 4 -
English translation of the consolidated financial statements originally filed in Spanish with the Argentine Securities Commission ("CNV").
In case of discrepancy, the consolidated financial statements filed with the CNV prevail over this translation
CENTRAL PUERTO S.A.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION as at December 31, 2023
Notes | 2023 | 2022 | ||
Assets | ARS 000 | ARS 000 | ||
Non-current assets | ||||
Property, plant and equipment | Exhibit A | 758,933,621 | 616,321,669 | |
Intangible assets | 12 & Exhibit B | 15,956,070 | 24,212,452 | |
Biological assets | 89,242,177 | 38,299,254 | ||
Investment in associates | 3 & Exhibit C | 34,360,068 | 37,860,820 | |
Inventories | 9 | 5,981,574 | 6,813,989 | |
Other non-financial assets | 11.1 | 304,343 | 765,683 | |
Trade and other receivables | 10.1 | 154,597,455 | 131,784,373 | |
Other financial assets | 10.5 & Exhibit D | 38,740,617 | 3,632,284 | |
Deferred tax asset | 7 | 12,663,514 | 2,602,356 | |
Current assets | 1,110,779,439 | 862,292,880 | ||
Biological assets | 6,758,707 | 9,181,119 | ||
Inventories | 9 | 8,939,956 | 19,681,975 | |
Other non-financial assets | 11.1 | 12,220,611 | 2,777,364 | |
Trade and other receivables | 10.1 | 161,280,356 | 136,683,090 | |
Other financial assets | 10.5 & Exhibit D | 89,838,080 | 129,998,893 | |
Cash and cash equivalents | 13 | 13,470,493 | 28,785,809 | |
Total assets | 292,508,203 | 327,108,250 | ||
1,403,287,642 | 1,189,401,130 | |||
Equity and liabilities | ||||
Capital stock | 1,514,022 | 1,514,022 | ||
Adjustment to capital stock | 246,927,434 | 246,927,434 | ||
Legal reserve | 41,261,481 | 38,296,802 | ||
Voluntary reserve | 346,305,972 | 485,798,841 | ||
Other equity accounts | (22,528,983) | (18,091,155) | ||
Voluntary reserve for future dividends distribution | 73,320,698 | - | ||
Retained earnings | 148,019,840 | 58,818,155 | ||
Equity attributable to holders of the parent | 834,820,464 | 813,264,099 | ||
Non-controlling interests | 21,751,086 | 616,612 | ||
Total equity | 856,571,550 | 813,880,711 | ||
Non-current liabilities | ||||
Other non-financial liabilities | 11.2 | 28,078,227 | 23,580,634 | |
Loans and borrowings | 10.3 | 286,373,907 | 140,883,742 | |
Compensation and employee benefits liabilities | 11.3 | 3,309,290 | 2,321,472 | |
Provisions | 1,934,005 | 184,892 | ||
Deferred income tax liabilities | 7 | 79,164,462 | 76,196,163 | |
398,859,891 | 243,166,903 | |||
Current liabilities | ||||
Trade and other payables | 10.2 | 49,803,473 | 23,376,350 | |
Other non-financial liabilities | 11.2 | 25,617,934 | 27,316,831 | |
Loans and borrowings | 10.3 | 48,810,618 | 56,632,669 | |
Compensation and employee benefits liabilities | 11.3 | 15,726,816 | 10,034,781 | |
Income tax payable | 6,273,203 | 14,849,276 | ||
Provisions | Exhibit E | 1,624,157 | 143,609 | |
Total liabilities | 147,856,201 | 132,353,516 | ||
546,716,092 | 375,520,419 | |||
Total equity and liabilities | 1,403,287,642 | 1,189,401,130 |
- 5 -
English translation of the consolidated financial statements originally filed in Spanish with the Argentine Securities Commission ("CNV").
In case of discrepancy, the consolidated financial statements filed with the CNV prevail over this translation
CENTRAL PUERTO S.A.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY for the year ended December 31, 2023
Attributable to holders of the parent | |||||||||||||||||||
Capital stock | Retained earnings | Voluntary | |||||||||||||||||
Adjustment | reserve for | Unappropriated | Non- | ||||||||||||||||
Face | to capital | Legal | Voluntary | Other equity | future dividends | retained | controlling | ||||||||||||
value | stock | reserve | reserve | accounts | distribution | earnings | Total | interests | Total | ||||||||||
ARS 000 | ARS 000 | ARS 000 | ARS 000 | ARS 000 | ARS 000 | ARS 000 | ARS 000 | ARS 000 | ARS 000 | ||||||||||
As of January 1, 2023 | 1,514,022 | 246,927,434 | 38,296,802 | 485,798,841 | (18,091,155) | - | 58,818,155 | 813,264,099 | 616,612 | 813,880,711 | |||||||||
Net income for the year | - | - | - | - | - | - | 148,043,845 | 148,043,845 | (2,082,975) | 145,960,870 | |||||||||
Other comprehensive loss for the year | - | - | - | - | - | - | (750,969) | (750,969) | - | (750,969) | |||||||||
Total comprehensive income (loss) for the year | - | - | - | - | - | - | 147,292,876 | 147,292,876 | (2,082,975) | 145,209,901 | |||||||||
Increase in legal reserve | - | - | 2,964,679 | - | - | - | (2,964,679) | - | - | - | |||||||||
Increase in voluntary reserve for future dividends | |||||||||||||||||||
distribution | - | - | - | - | - | 55,853,476 | (55,853,476) | - | - | - | |||||||||
Increase in voluntary reserve for future dividends | |||||||||||||||||||
distribution | - | - | - | (139,492,869) | - | 139,492,869 | - | - | - | - | |||||||||
Dividends in cash | - | - | - | - | - | (122,025,647) | - | (122,025,647) | - | (122,025,647) | |||||||||
Business combination (Note 2.3.20) | - | - | - | - | - | - | - | - | 19,146,135 | 19,146,135 | |||||||||
Transaction between related parties (Note 16) | - | - | - | (2,778,048) | - | - | (2,778,048) | 8,929,639 | 6,151,591 | ||||||||||
Dividends in cash distributed by a subsidiary (2) | - | - | - | - | - | - | - | - | (4,858,325) | (4,858,325) | |||||||||
Dividends in cash collected by a subsidiary (3) | - | - | - | - | - | - | 726,964 | 726,964 | - | 726,964 | |||||||||
Acquisition of owned shares (Note 10.3.10) | - | - | - | - | (1,659,780) | - | - | (1,659,780) | - | (1,659,780) | |||||||||
As of December 31, 2023 (1) | 1,514,022 | 246,927,434 | 41,261,481 | 346,305,972 | (22,528,983) | 73,320,698 | 148,019,840 | 834,820,464 | 21,751,086 | 856,571,550 | |||||||||
As of January 1, 2022 | 1,514,022 | 246,927,434 | 38,296,802 | 503,835,858 | (18,002,310) | - | (4,449,524) | 768,122,282 | 1,031,915 | 769,154,197 | |||||||||
Net income for the year | - | - | - | - | - | - | 59,293,545 | 59,293,545 | 116,728 | 59,410,273 | |||||||||
Other comprehensive (loss) income for the year | - | - | - | - | - | - | (475,389) | (475,389) | - | (475,389) | |||||||||
Total comprehensive income for the year | - | - | - | - | - | - | 58,818,156 | 58,818,156 | 116,728 | 58,934,884 | |||||||||
Decrease in voluntary reserve due to loss absorption | - | - | - | (4,449,523) | - | - | 4,449,523 | - | - | - | |||||||||
Dividends in cash | - | - | - | (13,587,494) | - | - | - | (13,587,494) | - | (13,587,494) | |||||||||
Dividends in cash distributed by a subsidiary (4) | - | - | - | - | - | - | - | - | (532,031) | (532,031) | |||||||||
Acquisition of owned shares (Notes 10.3.10) | - | - | - | - | (88,845) | - | - | (88,845) | - | (88,845) | |||||||||
As of December 31, 2022 (5) | 1,514,022 | 246,927,434 | 38,296,802 | 485,798,841 | (18,091,155) | - | 58,818,155 | 813,264,099 | 616,612 | 813,880,711 | |||||||||
- 11,277,623 common shares are held by subsidiaries.
- Distribution of dividends in cash approved by the Shareholders' Meeting of the subsidiary Central Vuelta de Obligado S.A. held on May 24, 2023.
- Dividend collection by the subsidiary Proener S.A.U. in relation to the dividends distribution decided by the Company's Shareholders Meeting of the Company.
- Distribution of dividends in cash approved by the Shareholders' Meeting of the subsidiary Central Vuelta de Obligado S.A. held on May 4, 2022.
- 8,977,630 common shares are held by subsidiaries.
- 6 -
English translation of the consolidated financial statements originally filed in Spanish with the Argentine Securities Commission ("CNV").
In case of discrepancy, the consolidated financial statements filed with the CNV prevail over this translation
CENTRAL PUERTO S.A.
CONSOLIDATED STATEMENT OF CASH FLOWS for the year ended December 31, 2023
2023 | 2022 | ||||
ARS 000 | ARS 000 | ||||
Operating activities | |||||
Income for the year before income tax | 163,898,997 | 80,337,502 | |||
Adjustments to reconcile income for the year before income tax to net cash flows: | |||||
Depreciation of property, plant and equipment | 64,072,513 | 48,238,614 | |||
Amortization of intangible assets | 6,145,363 | 12,334,159 | |||
Reversal of impairment / (impairment) of property, plant and equipment and intangible assets | (43,994,536) | 43,670,460 | |||
Property, plant and equipment, and inventory write off | 8,461,885 | (61,955) | |||
Recovery (Charge) discount of tax credits | 763,531 | (818,538) | |||
Interest earned from customers | (33,388,985) | (20,714,927) | |||
Finance income | (230,203,826) | (79,527,910) | |||
Finance expenses | 356,774,380 | 135,316,228 | |||
Insurance recovery collected | - | (4,174,622) | |||
Share of the profit of associates | (6,115,780) | (347,325) | |||
Result from acquisition of investments in companies | (72,645,358) | (37,911,293) | |||
Material and spare parts impairment | 716,167 | 1,594,977 | |||
Movements in provisions and long-term employee benefit plan expense | 3,692,018 | 1,070,834 | |||
Biological assets revaluation | (14,243,982) | - | |||
Foreign exchange difference for trade receivables | (190,654,483) | (85,079,807) | |||
Loss on net monetary position | 123,284,322 | 52,082,033 | |||
Working capital adjustments: | |||||
Decrease in trade and other receivables | 42,974,477 | 31,262,737 | |||
(Increase) Decrease in other non-financial assets and inventories | (30,725,480) | 10,559,232 | |||
Decrease in trade and other payables, other non-financial liabilities and liabilities from employee | |||||
benefits | (17,337,800) | (11,473,497) | |||
Interest received from customers | 29,320,380 | 18,030,017 | |||
Tax interest paid | (34,344,072) | (25,046,766) | |||
Income tax paid | (952,955) | - | |||
Insurance recovery collected | 118,000 | 3,921,416 | |||
Net cash flows provided by operating activities | 125,614,776 | 173,261,569 | |||
Investing activities | |||||
Purchase of property, plant and equipment | (9,834,940) | (10,434,395) | |||
Dividends collected | 6,728,299 | 875,311 | |||
Sale of property, plant and equipment | - | 146,707 | |||
Acquisition of other financial assets, net | (22,793,255) | (55,592,318) | |||
Acquisition of subsidiaries and associates, net of cash acquired | (36,017,836) | (32,252,001) | |||
Acquisition of owned shares | (1,659,780) | (88,845) | |||
Net cash flows used in investing activities | (63,577,512) | (97,345,541) | |||
Financing activities | |||||
Bank and investment accounts overdrafts (paid) received, net | (4,814,307) | 6,558,899 | |||
Loans received | 71,906,462 | - | |||
Loans paid | (93,096,630) | (26,333,200) | |||
Corporate bonds repurchase payment | (6,474,215) | - | |||
Direct financing and loans refinancing costs | (1,711,546) | (888,343) | |||
Interest and other financial costs paid | (23,648,968) | (18,946,446) | |||
Dividends paid | (21,914,775) | (11,171,400) | |||
Net cash flows used in financing activities | (79,753,979) | (50,780,490) | |||
(Decrease) Increase in cash and cash equivalents | (17,716,715) | 25,135,538 | |||
Exchange difference and other financial results | 20,416,299 | 4,059,896 | |||
RECPAM generated by cash and cash equivalents | (18,014,900) | (2,118,590) | |||
Cash and cash equivalents as of January 1 | 28,785,809 | 1,708,965 | |||
Cash and cash equivalents as of December 31 | 13,470,493 | 28,785,809 | |||
- 7 -
English translation of the consolidated financial statements originally filed in Spanish with the Argentine Securities Commission ("CNV").
In case of discrepancy, the consolidated financial statements filed with the CNV prevail over this translation
CENTRAL PUERTO S.A.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1. Corporate information and main business
Central Puerto S.A. (hereinafter the "Company", "we", "us" or "CEPU") and the companies that make up the business group (hereinafter the "Group") form an integrated group of companies pertaining to the energy sector. The Group is mainly engaged in electric power generation.
CEPU was incorporated pursuant to Executive Order No. 122/92. We were formed in connection with privatization process involving Servicios Eléctricos del Gran Buenos Aires S.A. ("SEGBA") in which SEGBA's electricity generation, transportation, distribution and sales activities were privatized.
On April 1, 1992, Central Puerto S.A., the consortium-awardee, took possession over SEGBA's Nuevo Puerto and Puerto Nuevo plants, and we began operations.
Our shares are listed on the BCBA ("Buenos Aires Stock Exchange"), and, since February 2, 2018, they are listed on the NYSE ("New York Stock Exchange"), both under the symbol "CEPU".
In order to carry out its electric energy generation activity the Group owns the following assets:
- Our Puerto complex is composed of two facilities, Central Nuevo Puerto ("Nuevo Puerto") and Central Puerto Nuevo ("Puerto Nuevo"), located in the port of the City of Buenos Aires. Our Puerto complex's facilities include steam turbines plants and a Combined Cycle plant and has a current installed capacity of 1,747 MW.
- Our Luján de Cuyo plants are located in Luján de Cuyo, Province of Mendoza and have an installed capacity of 576 MW and a steam generating capacity of 125 tons per hour.
- The Group also owns the concession right of the Piedra del Águila hydroelectric power plant located at the edge of Limay river in Neuquén province. Piedra del Águila has four 360 MW generating units.
- The Group is engaged in the management and operations of the thermal plants José de San Martín and Manuel Belgrano through its equity investees Termoeléctrica José de San Martín S.A. ("TJSM") and Termoeléctrica General Belgrano S.A. ("TMB"). Those entities operate the two thermal generation plants with an installed capacity of 865 MW and 873 MW, respectively. Additionally, through its subsidiary Central Vuelta de Obligado S.A. ("CVO") the Group is engaged in the operation of the thermal plant Central Vuelta de Obligado, with an installed capacity of 816 MW.
- The thermal station Brigadier López located in Sauce Viejo, Province of Santa Fe, with an installed power of 280.5 MW (open-cycle operation).
- The thermal cogeneration plant Terminal 6 - San Lorenzo located in Puerto General San Martín, Santa Fe Province, with an installed power of 391 MW and 340 tn/h of steam production.
- The thermal station Costanera located in the City of Buenos Aires operates a thermal generation plant which is made by six turbo-steam units with an installed power capacity of 1,131 MW and two combined cycle plants with an installed power capacity of 1,121 MW (see Note 18.5).
- Generation plants using renewable energy sources with a total installed capacity of 473.8 MW of commercially available installed capacity from renewable energy sources, distributed as follows: (i) wind farm La Castellana 100.8 MW; (ii) wind farm La Castellana II 15.2 MW; (iii) wind farm La Genoveva
- MW; (iv) wind farm La Genoveva II 41.8 MW; (v) wind farm Achiras 48 MW; (iv) wind farm Los Olivos
- MW, (vii) wind farm Manque 57 MW and (viii) solar farm Guañizuil II A 100 MW (See note 18.7).
- 8 -
English translation of the consolidated financial statements originally filed in Spanish with the Argentine Securities Commission ("CNV").
In case of discrepancy, the consolidated financial statements filed with the CNV prevail over this translation
CENTRAL PUERTO S.A.
The Group is also engaged in the natural gas distribution public sector service in the Cuyo and Centro regions in Argentina, through its equity investees belonging to ECOGAS Group. On July 19, 2018, the National Gas Regulation Entity (Enargas) filed the Company with the Registry of Traders and Trade Agreements of Enargas.
Finally, through Proener S.A.U., a company fully controlled by CPSA, the Group is engaged in the forest activity since Proener S.A.U. is the parent company of: a) Forestal Argentina S.A. and Loma Alta Forestal S.A.; such companies own forestry assets which consist of 72,000 hectares approximately in Entre Ríos and Corrientes provinces, in which 43,000 hectares approximately are planted with eucalyptus and pine tree, and b) Empresas Verdes Argentina S.A., Las Misiones S.A. and Estancia Celina S.A.; such companies own forest assets that are made of approximately 88,063 hectares in Corrientes province, from which 26,000 are planted with pine tree (over a total 36,000 hectares plantable area). See Note 18.6.
The issuance of Group's consolidated financial statements of the year ended December 31, 2023 was approved by the Company's Board of Directors on March 8, 2024.
1.1. Overview of Argentine Electricity Market
Transactions among different participants in the electricity industry take place through the wholesale electricity market ("WEM") which is a market in which generators, distributors and certain large users of electricity buy and sell electricity at prices determined by supply and demand ("Term market") and also, where prices are established on an hourly basis based on the economic production cost, represented by the short term marginal cost measured at the system's load center ("Spot market"). CAMMESA (Compañía Administradora del Mercado Mayorista Eléctrico Sociedad Anónima) is a quasi-government organization that was established to administer the WEM and functions as a clearing house for the different market participants operating in the WEM. Its main functions include the operation of the WEM and dispatch of generation and price calculation in the Spot market, the real-time operation of the electricity system and the administration of the commercial transactions in the electricity market.
After the Argentine economic crisis in 2001 and 2002 and the Convertibility Law, the costs of generators increased as a result of the Argentine peso devaluation. In addition, the price of fuel for their generation increased as well. The increasing generation costs combined with the freezing of rates for the final user decided at the time by National Government led to a permanent deficit in CAMMESA accounts, which faced difficulties to pay the energy purchases to generators. Due to this structural deficit, the Secretariat of Energy issued a series of regulations to keep the electricity market working despite the deficit.
1.2. Amendments to WEM regulations
- Resolution SE No. 406/03 and other regulations related to WEM generators' receivables
Resolution 406/03 issued in September 2003 enforced priority payments of generator's balances. Under the priority payment plan, generators only collected the variable generation costs declared and the payments for power capacity and the remaining payments on these plants were delayed as there were not sufficient funds as a result of the structural deficit. Resolution 406/03 established that the resulting monthly obligations to generators for the unpaid balance were to be considered payments without a fixed due date, or "LVFVD receivables" using the Spanish acronym. Although these obligations did not have a specified due date, the Resolution provided that they would earn interest at an equivalent rate to the one received by CAMMESA on its own cash investments, hereafter "the CAMMESA rate".
As a result of this regulation, a portion of the invoices issued by Company's plants were not paid in full beginning in 2004.
Between 2004 and 2007, the Argentine government issued a series of resolutions aimed at increasing thermal generation capacity while at the same time providing a mechanism for generators to collect their LVFVD receivables. These resolutions created funds called the "FONINVEMEM" which were administered by trusts
- 9 -
English translation of the consolidated financial statements originally filed in Spanish with the Argentine Securities Commission ("CNV").
In case of discrepancy, the consolidated financial statements filed with the CNV prevail over this translation
CENTRAL PUERTO S.A.
("the FONINVEMEM trust") and made investments in two thermal generation plants within Argentina. All WEM creditor agents with LVFVD (including the Company) were invited to state formally their decision to participate in forming the FONINVEMEM. The Company, as most LVFVD generators, stated its decision to participate in the creation of the FONINVEMEM with the abovementioned receivables.
Within this framework, generators created the companies Termoeléctrica José de San Martín S.A. ("TSM") and Termoeléctrica Manuel Belgrano S.A. ("TMB"), which were engaged in managing the purchase of equipment, and building, operating and maintaining each new power plant.
Under these Resolutions, the trusts Central Termoeléctrica Timbúes ("FCTT") and Central Termoeléctrica Manuel Belgrano ("FCTMB") are the owner of the Central Termoeléctrica San Martin and Central Termoeléctrica Belgrano plants during the first ten years of operations. Trusts are aimed at administrating, each of them, 50% of the resources accrued under FONINVEMEM and other funds for the purpose of financing the power stations. Under these agreements, CAMMESA acts as a Trustor, Banco de Inversión y Comercio Exterior ("BICE") as Trustee, the Secretariat of Energy as regulatory authority and TSM and TMB as Trust Beneficiaries and the Company, with the remaining shareholders of TSM and TMB, as guarantors of the obligations of the latter.
The trust agreements had to remain in force until the termination date of the supply agreement that the Trustee
- in representation of the Trust - entered into with CAMMESA - as the purchasing party - that had to remain valid for 10 years as from the date of the commercial authorization of the power stations. Upon the termination of that term, the trust assets must be transferred to TSM and TMB provided that, prior to such transference, TSM and TMB and their shareholders perform all the corporate acts necessary to allow private contributors and/or the Argentine Government to receive their correspondent shares in the capital of the power stations pursuant to the terms of the agreement. Failure to comply with this condition, holders of interest certificates (Argentine Government) and the generators who are the current shareholders of TSM and TMB shall be deemed as trust beneficiaries.
The FONINVEMEM agreements established that the receivables mentioned above will be paid by CAMMESA in 120 equal, consecutive monthly installments commencing on the commercial operation date of the plants. Also, the agreements established that the LVFVD receivables would be collected converted to US dollar and began earning interest at LIBOR plus a spread of 1% and 2%.
Once Manuel Belgrano and San Martin plants were commissioned (on January 7, 2010 and February 2, 2010, respectively), CAMMESA began paying the LVFVD receivables. On May 2010, CAMMESA informed the Company of the payment plan, including the amount of accrued interest at the CAMMESA rate which was added to the principal to be repaid in monthly installments over a ten-year period. Upon receipt of the payment schedule, the Company recognized accrued interest (related to the CAMMESA rate). The Company also began recognizing LIBOR interest income based on the contractual rate provided in the Resolution and the conversion of the receivables into US dollar. Since achieving commercial operations in 2010, CAMMESA have made all scheduled contractual principal and interest payments in accordance with the installment plan.
On January 7, 2020, the supply agreement with TMB was terminated and on February 2, 2020, the supply agreement with TSM was terminated, therefore payments of the final installment of the 120 established in the agreement for each power stations ceased. As a result, the reimbursement for the LVFVD receivables is deemed completed. In Note 3.1, the events that occurred after the termination of the supply agreements with TMB and TSM are included.
Additionally, in 2010 the Company approved a new agreement with the former Secretariat of Energy (Central Vuelta Obligado, the "CVO agreement"). This agreement established, among other agreements, a framework to determine a mechanism to settle unpaid trade receivables as per Resolution No. 406/03 accrued over the 2008 - 2011 period by the generators ("CVO receivables") and for that purpose, enabling the construction of a thermal combined cycle plant named Central Vuelta de Obligado. The CVO agreement established that the CVO receivables will be paid by CAMMESA in 120 equal and consecutive monthly installments. For the
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Central Puerto SA published this content on 16 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 May 2024 14:28:02 UTC.
