Higher prices had a positive impact
Central Puerto, Argentina’s largest private power generator, reported third-quarter 2025 financial and operating results that beat expectations, driven by higher revenue and strong operating efficiency.
Adjusted EBITDA reached US$101.1 million, a 64% increase from the previous quarter and 8% higher than a year earlier. The result reflects the sector’s resilience amid ongoing regulatory changes in the Wholesale Electricity Market (WEM). Total revenue rose to US$233.9 million, up 30% from the second quarter and 26% above the third quarter of 2024. Energy sales accounted for 92.1% of the total (US$215.3 million). The improvement came from better recognition of fuel-cost and spot-price adjustments approved by the Energy Secretariat, which added a 1.9% compounded increase for the period.
Net income doubled to US$102.4 million, a 158% jump year over year, supported by gains in the fair value of acquisitions and reduced exposure to monetary fluctuations. The company generated 4,539 GWh, 4% more than in the second quarter but 20% less than a year ago due to weak hydrology at the Piedra del Águila hydro plant, where output fell 59%.
Average availability at combined-cycle units remained at 96%, above the 95% benchmark. Steam production increased 1% year over year to 888 ktn. These results give the company a 14.1% share of the Argentine Interconnection System (SADI).
Regulatory changes that boosted performance
Resolution SE 400/2025, issued on Oct. 21 and effective in November, marked the beginning of a gradual liberalization of the WEM. The reform created a term market for thermal generators, allowing sales of up to 20% to large users and 100% to distributors. Spot-market revenue will be dollar-denominated, which reduces inflation and currency risks. Analysts say the change could increase Central Puerto’s EBITDA by 20% to 25% in 2026.
The company strengthened its renewable portfolio through the acquisition of the 80-MW Cafayate solar farm in Salta for US$48.5 million, backed by a power-purchase agreement through 2039. Central Puerto also secured two battery-storage projects totaling 205 MW in the AlmaGBA tender. These projects come with 15-year contracts and an estimated capex between US$130 million and US$140 million, ensuring fixed, dollar-denominated revenue. These assets, expected to come online by mid-2027, underscore the company’s push into the energy transition.
Central Puerto’s financial position remains conservative. As of Sept. 30, cash and equivalents totaled US$292.1 million. Gross debt was US$452.1 million and net debt US$159.9 million, equal to 0.5 times EBITDA.
In August, the company issued US$89 million in Class C notes at 8% interest, with maturity in 2029. Moody’s initiated coverage with a local AA+ rating and Fix SCR upgraded the company to AA from AA-. For the fourth quarter, Central Puerto expects to make US$90 million in debt payments (Class A notes and the Guañizuil solar project). Maintenance work is also planned at the Luján de Cuyo plant (45 days) and the Central Puerto complex (60 days) to extend asset life. The company repurchased 2.756 million shares for US$2.54 million and submitted bids in the Nov. 7 tender for hydroelectric concessions in the Comahue region.
Market reaction has been positive. Analysts highlighted the expected 20% to 25% jump in EBITDA from Resolution 400 and new projects, although some noted past policy delays since 2018. On a Nov. 12 earnings call, executives projected an additional US$60 million to US$65 million in EBITDA from Brigadier López and US$3 million to US$5 million from San Carlos. Capex for 2026 will center on battery-storage projects.
Regionally, WEM balances showed stability. Installed capacity reached 43,887 MW, up 0.5% from the prior quarter. Renewable generation grew 20.1% year over year, although demand fell 1.1% to 35,255 GWh, mainly due to lower residential consumption. Resolution 400, which restores a marginal pricing model and introduces a spot-market remuneration system with adjusted returns (FRA of up to 35% for existing thermal units), is broadly seen as a catalyst for private generators.