Central Puerto S.A.

Good morning, ladies and gentlemen. Welcome to Central Porto's fourth quarter of 2025 earnings conference call. A slide presentation is accompanying today's webcast and will be also available on the investor section of the company's website, www.centralporto.com slash en slash investors. All participants will be in a listen-only mode during the presentation. After that, there will be an opportunity to ask questions. Please note this event is being recorded. If you do not have a copy of the press release, please refer to the investor relations support section on the company's corporate website at www.centralporto.com. In addition, a replay of today's call will be available in upcoming days by accessing the webcast link at the same section of the Central Puerto's website. Our host today will be Mr. Fernando Bonet, Central Puerto's CEO, Mr. Enrique Terranio, the company CFO, Mrs. Maria Laura Feller, Head of Investor Relations, and Mr. Alejandro Diaz-Lopez, Head of Corporate Finance. Maria Laura, please go ahead.

Good morning, everyone, and thank you for joining us. We will walk you through Central Puerto's four-quarter and full-year 2025 results, discuss key operational and market developments, and then open the library for questions. Before we begin, please note that my remarks may include forward-looking statements and references to non-IFRS measures, such as HST-ABTA. These statements are subject to risks and uncertainties and actual results may differ materially. Definitions and reconciliations are available in our 4Q25 earnings presentation and financial statements. Revenues for 2025 reached $782.8 million, up 17% year-over-year. For Q25, revenues were $172.8 million, decreasing 26% quarter-on-quarter and increasing 3% year-on-year. 2025 adjusted VTA was $337.2 million. an increase of 17% year-over-year. And for Q25 HSDA VTA, it was $84.7 million, down 16% quarter-on-quarter, and up 30% year-on-year. Total generation for the year was 18.6 terawatt hour, down 14% year-over-year, largely reflecting historically low hydrology at Piedra de la Ira. And also in 2025, we undertook no recurring maintenance works in Central Costanera combined cycles, and we had the cost of a generation asset. Regarding business performance, 2025 marked a pivotal year of consistent growth and market normalization. The company strengthened its strategic position and reinforced its power generation asset portfolio for long-term value creation. Throughout 2025, Argentina's wholesale market Our market advanced toward normalization. Since November 1st, Resolution 400 has supported U.S. dollars denominated spot prices and recognized a margin over variable costs. In December 2025, 97% of our revenues were denominated in U.S. dollars. And we also progressed in the new thermal term market, standing around 11% of total volumes in the contracted market. with approximately 900 megawatt hour delivered to industrial customers during November and December. Our CAPEX plan in 2025 included fully executed projects over the year and additional projects that allow us to look forward and continue delivering growth. In 2025, our total CAPEX was $202.4 million, consisting of concluding with 2024 projects such as the closing of the Brigadier López Combined Cycle, that achieved commercial operation during 1Q26, and we concluded also the San Carlos Solar Farm project, our first solar greenfield project. The assets reached commercial operation in November 2025, adding 15 megawatts of renewable capacity to our portfolio. Together with Cafachate, our two 2025 solar projects doubled our installed solar capacity and increased our total renewable portfolio by 20%. Also in 2025, we extended the Piedra del Aguila concession. The company was awarded the concession under the Comahue hydroelectric complex privatization process, extending the operation, the operating term of the Piedra del Aguila hydroelectric facility through 2055. Winning bid offer was $245 million paid in January, 2026. The company is also focused on the battery energy storage system projects Looking forward to add 205 megawatts of new technology in 2027. Our growth plan is backed by our financial strength, flexibility, and low leverage ratio. In December 2025, net leverage ratio was 0.3 times annual chassis VTA, with which position as well to add new financial debt to finance PLLA La Concepcion extension in the fee payment and the battery energy storage system projects. 2025 revenues stood at $782.6 million, 17% above 2024 revenues, despite the 14% decrease in generation volumes. Spot revenues growth in 2025 reflect additional revenues from the realignment of the spot price over the year and the resolution 400 since November 2025. Also, we see the effect of the self-procured fuel oil with the associated cost path through in revenues. Offsets came from lower water inflows from Piedra de Laila and the maintenance works in Central Costanera combined cycles. PPA says growth includes new MAD contracts in November and December 2025, including also cost of fuels incorporated in the energy component. Revenues increased by 3% as wind farm volumes increased 5% due to higher wind resources, and the full contribution from Café Châtel solar plant since the end of August 2025. Full year 2025 EBTA reached $337 million. $2 million, a 17% increase year-on-year, primarily driven by revenue growth and the market normalization and higher margins from self-procured fuels, which added approximately $8 million. In 2025, total generation reached 18.6 TWh, representing 14% decrease compared to 2024. Central Costanera's generation volumes decreased by 15% year-over-year, primarily due to maintenance work in both Mitsubishi and Siemens combined cycles during 2025. Second, Piedra de la Aguila generated 38% less than in 2024, mainly due to historically low water inflows affecting hydro production. Finally, Luján de Cuyo was 24% lower year-on-year, largely explained by maintenance works in the cogeneration asset in the fourth quarter. Going to its soil capacity, our portfolio reached 6,900 38 MWh in 2025, representing an increase of 234 MWh compared to 2024. The increase was driven by serial developments. The Real Lopez Combined Cycle was completed, and the San Carlos solar projects added 15 MW of solar capacity. Together with Cafachate Solar Farm acquired in August 2025, these two solar projects contributed by 20% of the renewal capacity additions during the year. Regarding market position, Central Puerto maintains its market leadership, reaching 14% market share of total salary generation. Finally, looking at operational performance, our thermal field continues to show solid availability levels. In 2025, total thermal availability reached 77%, while combined cycles availability stood at 89%, reflecting strong operational reliability. During 2025, three thermal and renewable projects were completed, combining green-free developments and M&A transactions, further expanding our generation portfolio. First, the Kafashati solar farm, which was acquired through an M&A transaction, is already in operation. Second, we finalized the Agadir-López combined cycle project, which is also already in operation since January 2026. Third, the San Carlos solar farm also entered into operations in November 2025. In addition, we were awarded two battery energy storage system projects, which were granted in August 2025. These projects are currently under development and are expected to begin operations during the first half of 2027. Finally, an important milestone regarding the Virela Aguila Hydroelectric Plant was that Tendral Puerto successfully secured a 30-year concession extension for the plant through the privatization tender process. The concession fee payment was successfully completed in January 2026, marking another key step in strengthening our long-term asset base. In 2005, the Argentine-powered system reached a new record for the demand, with a peak of 30,257 MW. On February 10, 2005, renewable generation rose 16.5% year-over-year and supplied about 19% of total demand, including hydro renewables representing roughly 39% of the total annual energy mix. Thermal fuel consumption declined 2.6% year-over-year, with gas oil down 53% and fuel oil 60%, partially offset by 1.2% increase in natural gas, and 5.2% increase in coal. As of December 31st, outstanding financial debt was $337.8 million, and net interest ratio stood at 0.3 times HFTA. On December 19th, we signed a $300 million syndicate A-B loan with IFC with an average life of five years to fund Piedra de la Isla concession fee and Central Puerto's base project. Also, our outstanding FONIMBM receivable credit was $118 million as of year end. Overall, 2025 was a year of solid growth and continued progress as the market normalized. During the year, the company kept expanding and strengthening its generation portfolio to support long-term development. Looking ahead, we will focus on three priorities, discipline, contracting, commercialization, operational excellence, and advancing our growth agenda.

2025 was a pivotal year for Central Puerto, marked by Piedra del Águila concession extension by 30 years more, portfolio expansion, market normalization, and strategic progress across our assets. We entered 2026 from a position of strength with robust liquidity and a resilient business model. Thank you for your continued confidence in Central Puerto Please let's stay connect and now we will open the line for questions.