Central Puerto S.A. American Depositary Shares (each represents ten Common Shares) 2026 Q2 Earnings Call

Thank you very much. Good morning and welcome, everyone. We are joining you today from Buenos Aires with our management team to walk you through the results of the second quarter of 2026, and afterward, we will take your questions. Before we start, a couple of quick notes, both covered on slide 2. First, today's presentation includes forward-looking statements and non-IFRS measures, including adjusted EBITDA, so please keep our full disclaimer in mind as we go through the numbers. Also, to remind the audience, since January 1 of this year, our functional currency is the US dollar rather than the Argentine peso, and we have also refined how we convert historical peso figures into dollars. You will find the full detail in Note 2.2 to our financial statements. All figures are in US dollars unless otherwise stated. Let's turn to slide 3 for the highlights of the quarter.

Second quarter adjusted EBITDA came in at $145.0 million. That is up 20.1% versus the $120.7 million we posted in the first quarter and up 136.2% versus the $61.4 million posted in the second quarter of 2025. Revenues totaled $453.3 million, up 82.3% quarter-on-quarter from $248.6 million, and up 165.8% year-on-year from $170.5 million. This figure includes $176.4 million of spot CVP related to self-procured fuel. Total generation reached 5,250 gigawatt hours, representing approximately 15% of total generation on Argentina's grid. This was a 3.1% decrease from the first quarter's 5,420 gigawatt hours, but a 20.1% increase versus the 4,372 gigawatt hours generated in the second quarter of last year. On the investment side, capital expenditures for the first half of 2026 totaled $421.9 million.

This included $245.0 million for the Piedra del Águila concession, $50.0 million for the acquisition of the oil and gas blocks, $106.0 million for our battery storage projects, and $20.9 million in maintenance and other capital expenditures. Net financial leverage stood at 1.2 times adjusted EBITDA, with net financial debt of $493.4 million and last 12-month adjusted EBITDA of $403.8 million. FONINVEMEM collections from CAMMESA were $16.0 million in the quarter, and outstanding credit was $104.8 million. On the financing front, in April, we issued our Class D notes for $130.1 million at a 6% rate. In July, after quarter end, we issued our Class E notes for $94.3 million at a 5.5% rate. We also continued strengthening our commercial position. Our average market share in the Resolution 400 Term Market, or MAT, reached more than 35% in the second quarter.

We now serve more than 120 large industrial customers, plus 16 distribution and sub-distribution companies. Altogether, contracted sales combining PPAs, MAT, and MATER represented 55% of our total sales volumes and 48% of our total revenues, including hydro sales under the terms of the concession. On our growth projects, our battery storage system projects are on schedule. Construction is 69% complete at Nuevo Puerto and 54% complete at Central Costanera. With major equipment delivered or in transit and installation progressing on schedule. We expect the projects to be energized between October and November, with commercial operation in the fourth quarter of this year. Once operational, we expect these projects to contribute between $25 million and $27 million to the adjusted EBITDA in 2027. In April, we closed the acquisition of the oil and gas blocks. For now, we are maintaining technical due diligence previous to the CEN.

Let's move to slide 4 for more detail on generation and our commercial development. In the second quarter, total energy offered into the Argentine grid was 36,724 gigawatt hours. Made up of 34,954 gigawatt hours of local generation, plus approximately 1,770 gigawatt hours of imports. Central Puerto held more than 35% of the Resolution 400 term market share in the second quarter. Looking at the monthly trend, our share increased significantly through the quarter, reaching 35% in June, reflecting the continued progress of our commercial contracting efforts. Turning to slide 5, let's look at revenues in more detail. Revenues were $453.3 million, up 82.3% quarter-on-quarter and 165.8% year-on-year. Two things drove that growth. First, contracted sales increased, primarily due to a full quarter of revenues from the Brigadier López plant under its power purchase agreement.

Higher contracted energy and capacity sales in the term market from Central Puerto, Central Costanera, Piedra del Águila, and Luján de Cuyo, and the reclassification of Piedra del Águila's hydro sales as contracted sales beginning in 2026, reflecting the pricing mechanism established under Article 9 of the concession terms. Second, spot sales increased due to higher capacity revenues resulting from seasonal capacity remuneration parameters applicable during the winter months, as well as the fuel cost component that is reflected in revenues when we self-procure fuel for spot generation. In the second quarter, this included approximately $174 million of NG, LNG, and liquid fuels purchased directly. When CAMMESA supplies the fuel under the Plan Gas.Ar program, that cost is managed by CAMMESA, and therefore is not recognized as revenue by the company. Now to slide 6 for the adjusted EBITDA of the quarter.

Adjusted EBITDA was $145.0 million, up 20.1% quarter-on-quarter and 136.2% year-on-year. The improvement was mainly driven by the margin captured on self-procured liquid fuels and seasonal spot prices, together with new contracted thermal energy in the MAT. Let's move to slide seven for generation and availability. Total generation was 5,250 gigawatt hours this quarter. Compared to the first quarter, a few things moved in different directions. Generation from our legacy steam turbines was down 17%, while Piedra del Águila more than doubled its output, up 112.9%, reflecting stronger hydrology. Renewable generation was down 17.0% quarter-on-quarter, and the Luján de Cuyo gas turbine unit was still out of service following the generator failure that occurred in the first quarter of last year. Our thermal fleet remained reliable.

Total thermal availability of combined cycles was 87.0%, and steam production totaled 781,742 tons, up 45.4% quarter-on-quarter, but down 16.0% year-on-year. Central Puerto represented approximately 15% of total generation on Argentina's grid, or 15.9% including our FONINVEMEM plants at our working interest. Turning to slide eight, total capital expenditures for the first half of the year were $421.9 million. This includes $245.0 million for the Piedra del Águila concession, $50.0 million for the oil and gas block acquisition, $106.0 million for our battery storage projects, and $20.9 million for maintenance and other items. The Battery Energy Storage System projects have already executed 81% of the project's total capital budget. Construction is 69% complete at Nuevo Puerto and 54% at Central Costanera. Major equipment has either been delivered or is in transit, and installation is progressing on schedule.

We expect commercial operation in the fourth quarter of 2026. Once running, we expect these projects to add between $25 million and $27 million EBITDA in 2027. Now to slide nine on our balance sheet and financial flexibility. As of June 30, our total outstanding financial debt was $671.9 million. Against cash equivalents, and financial current assets of $178.4 million, that leaves us with net debt of $493.4 million. Measured against our last 12 months adjusted EBITDA of $403.8 million, our net leverage ratio was 1.2 times, a healthy level that gives us financial flexibility. On our debt maturity profile, we hold $178.4 million in cash and financial current assets today, and our maturities are well spread out over time, with $176.4 million coming due later this year, followed by moderate amounts in 2027 and 2028 and larger maturities in 2029 and 2030.

On financing activity, in April, we issued our Class D notes for $130.1 million at a 6.0% rate with a 48-month bullet maturity. In July, after the quarter closed, we issued our Class E notes for $94.3 million at 5.5% with a 36-month bullet maturity, mainly to fund working capital and fuel procurement needs. Thank you very much for your time and for your continued confidence in Central Puerto. Operator, please open the line for questions.