Central Puerto S.A. (NYSE:CEPU) Q3 2023 Earnings Call Transcript

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It’s not fully finished. We expect that to have an announcement perhaps this week or the next one. But, of course, that will depend on also, I think, the ending of the result of the election. And in terms of acquisitions, we are still looking in terms of new capacity in renewables. We are seeing several projects there, but we don’t have any clear view about how we can continue the process because we are in the early stages. We are still looking at possibilities in mining, but also in early stages. So, we don’t have another close possibilities right now. So, I think Brigadier Lopez is the more clear one, and second, the thermal options coming is another possibility.

Rodrigo Nistor: That was really helpful. Thank you.

Operator: Your next question is coming from Martin [Arenta] (ph) with Balance Capital. Please pose your question. Your line is live.

Unidentified Analyst: Hi. Thank you. Thank you very much for the materials and for taking my questions. I have three questions. I would like to run them one by one also, if that’s okay. First, now that you have paid the syndicated loan, what could we expect in dividends or share repurchases for next year?

Fernando Bonnet: Well, as you mentioned, we are — right now we don’t have any limitation to pay dividends, so we want to come back to the regular basis payments as we have in the past. So, the amount will, of course, depend on the tariff adjustment, how many megawatts we get awarded in the thermal option, and of course, the possibility of receiving financing in the future. But having said that, we want to come back to regular basis payments.

Unidentified Analyst: Very clear. Thanks. And then you already mentioned something about it, but I was wondering if you have any news on the evaluation of mining projects, if you think that Central Puerto could close a deal next year.

Fernando Bonnet: Well, for sure, we’re going to put focus on that. As I mentioned, we are in the early stages, so I cannot comment on how or when we can get the closing, but we want to put focus and see alternatives in that sector, yes.

Unidentified Analyst: Okay, thanks. And my last question, well, you were one of the main leaders in the recent thermal option, and of course, we are still waiting for the results, what IRR were you aiming for, and do you see a risk on financing rates for next year if the new government removes capital controls?

Fernando Bonnet: Okay, well, as you know, it’s an open process right now. So I cannot comment specifically the IRRs that we are seeing, but I can say, yes, that they, of course, are related to the Argentine risk and the risk you mentioned of the financing — perhaps limitations of financing situation that we can face in the near future. So the returns are according to that, but I cannot go forward because it’s an open process.

Unidentified Analyst: Okay. Very helpful. Thank you.

Fernando Bonnet: Thank you for your interest.

Operator: [Operator Instructions] This concludes our question-and-answer session. I would like to turn the conference back over to Mr. Fernando Bonnet for any closing remarks.

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

Operator: Thank you. This does conclude today’s conference call. Have a wonderful day.

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