Consolidated financial statements for the nine-month periods
ended September 30, 2021 and 2020, 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° 30 BEGINNING JANUARY 1, 2021 CONSOLIDATED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2021
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: April 28, 2017.
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)
Class of shares
Subscribed, paid-in, issued and registered
1,514,022,256 common, outstanding book-entry shares, with face value of 1 each and entitled to one vote per share.
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 AND COMPREHENSIVE INCOME
for the nine-month period ended September 30, 2021
9 months
3 months
Unaudited
Unaudited
Notes
01-01-2021 to
09-30-2021
01-01-2020 to
09-30-2020
07-01-2021 to
09-30-2021
07-01-2020 to
09-30-2020
ARS 000
ARS 000
ARS 000
ARS 000
Revenues
4
39,013,126
39,480,642
13,297,222
13,843,395
Cost of sales
Exhibit F
(20,574,804)
(16,806,722)
(6,935,038)
(5,514,677)
Gross income
18,438,322
22,673,920
6,362,184
8,328,718
Administrative and selling expenses
Exhibit H
(2,927,776)
(2,896,340)
(1,145,007)
(915,001)
Other operating income
5.1
8,443,318
14,128,826
1,856,525
2,465,229
Other operating expenses
5.2
(2,047,517)
(566,707)
(1,422,786)
6,997
Impairment of property, plant and equipment and intangible assets
(4,260,334)
(2,054,624)
-
-
Operating income
17,646,013
31,285,075
5,650,916
9,885,943
Loss on net monetary position
28,912
1,287,816
(219,553)
491,351
Finance income
5.3
603,740
3,927,860
264,280
1,413,358
Finance expenses
5.4
(13,744,668)
(22,327,630)
(2,102,551)
(6,742,122)
Share of the profit of associates
(600,613)
102,133
163,678
154,624
Income before income tax
3,933,384
14,275,254
3,756,770
5,203,154
Income tax for the period
6
(5,291,852)
(5,540,616)
(1,067,987)
(1,716,279)
Net (loss) income for the period
(1,358,468)
8,734,638
2,688,783
3,486,875
Total comprehensive (loss) income for the period
(1,358,468)
8,734,638
2,688,783
3,486,875
Attributable to:
-Equity holders of the parent
(1,420,778)
8,679,506
2,660,846
3,464,289
-Non-controlling interests
62,310
55,132
27,937
22,586
(1,358,468)
8,734,638
2,688,783
3,486,875
Basic and diluted (loss) earnings per share (ARS)
(0.94)
5.77
1.77
2.30
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 FINANCIAL POSITION
as at September 30, 2021
09-30-2021
12-31-2020
Notes
Unaudited
Audited
ARS 000
ARS 000
Assets
Non-current assets
Property, plant and equipment
Exhibit A
106,260,194
108,452,454
Intangible assets
Exhibit B
6,222,683
9,236,580
Investment in associates
5,659,014
6,387,732
Trade and other receivables
7.1
30,618,698
40,265,700
Other non-financial assets
8.1
254,607
663,035
Inventories
546,373
901,349
Deferred tax asset
6
1,051,052
134,739
150,612,621
166,041,589
Current assets
Inventories
674,852
1,101,451
Other non-financial assets
8.1
1,025,068
1,233,116
Trade and other receivables
7.1
23,055,307
25,659,189
Other financial assets
7.4
16,663,264
19,278,621
Cash and cash equivalents
275,593
381,699
41,694,084
47,654,076
Property, plant and equipment available for sale
11.1
-
3,231,455
Total assets
192,306,705
216,927,120
Equity and liabilities
Equity
Capital stock
1,514,022
1,514,022
Adjustment to capital stock
35,647,985
35,647,985
Legal reserve
5,728,456
5,256,504
Voluntary reserve
75,364,040
66,396,960
Other equity accounts
(2,692,796)
(2,692,796)
Retained earnings
(1,413,240)
9,446,570
Equity attributable to holders of the parent
114,148,467
115,569,245
Non-controlling interests
131,179
175,743
Total equity
114,279,646
115,744,988
Non-current liabilities
Other non-financial liabilities
8.2
5,453,188
7,196,183
Other loans and borrowings
7.3
35,628,599
42,244,490
Compensation and employee benefits liabilities
8.3
447,528
430,886
Provisions
45,403
62,184
Deferred income tax liabilities
6
14,561,687
12,326,076
56,136,405
62,259,819
Current liabilities
Trade and other payables
7.2
4,106,810
3,486,254
Other non-financial liabilities
8.2
3,839,789
3,083,194
Other loans and borrowings
7.3
11,413,986
27,562,044
Compensation and employee benefits liabilities
8.3
1,226,463
1,395,490
Income tax payable
1,274,960
3,347,594
Provisions
Exhibit E
28,646
47,737
21,890,654
38,922,313
Total liabilities
78,027,059
101,182,132
Total equity and liabilities
192,306,705
216,927,120
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 CHANGES IN EQUITY
for the nine-month period ended September 30, 2021
Attributable to holders of the parent
Non-controlling interests
Total
Capital stock
Retained earnings
Other
equity
accounts
Unappropriated retained earnings
Total
Face
value(1)
Adjustment to capital stock
Legal
reserve
Voluntary reserve
ARS 000
ARS 000
ARS 000
ARS 000
ARS 000
ARS 000
ARS 000
ARS 000
ARS 000
As of January 1, 2021
1,514,022
35,647,985
5,256,504
66,396,960
(2,692,796)
9,446,570
115,569,245
175,743
115,744,988
Net (loss) income for the period
-
-
-
-
-
(1,420,778)
(1,420,778)
62,310
(1,358,468)
Total comprehensive (loss) income for the period
-
-
-
-
-
(1,420,778)
(1,420,778)
62,310
(1,358,468)
Increase in legal reserve
-
-
471,952
-
-
(471,952)
-
-
-
Increase in voluntary reserve
-
-
-
8,967,080
-
(8,967,080)
-
-
-
DividEnds in cash distributed by a subsidiary(2)
-
-
-
-
-
-
-
(106,874)
(106,874)
As of September 30, 2021
1,514,022
35,647,985
5,728,456
75,364,040
(2,692,796)
(1,413,240)
114,148,467
131,179
114,279,646
(1)
A subsidiary holds 8,851,848 common shares.
(2)
Distribution of dividends in cash approved by the Shareholders' Meeting of the subsidiary Central Vuelta de Obligado S.A. held on April 28, 2021.
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 nine-month period ended September 30, 2020
Attributable to holders of the parent
Non-controlling interests
Total
Capital stock
Retained earnings
Other
equity
accounts
Unappropriated retained earnings
Total
Face
value(1)
Adjustment to capital stock
Legal
reserve
Voluntary reserve
ARS 000
ARS 000
ARS 000
ARS 000
ARS 000
ARS 000
ARS 000
ARS 000
ARS 000
As of January 1, 2020
1,514,022
35,647,985
4,435,279
49,431,175
-
17,787,009
108,815,470
1,474,334
110,289,804
Net income for the period
-
-
-
-
-
8,679,506
8,679,506
55,132
8,734,638
Total comprehensive income for the period
-
-
-
-
-
8,679,506
8,679,506
55,132
8,734,638
Increase in legal reserve
-
-
821,225
-
-
(821,225)
-
-
-
Increase in voluntary reserve
-
-
-
16,965,785
-
(16,965,785)
-
-
-
Dividends in cash distributed by a subsidiary(2)
-
-
-
-
-
-
-
(87,595)
(87,595)
Transaction with non-controlling interest (Note 10)
-
-
-
-
(2,692,796)
-
(2,692,796)
(1,305,907)
(3,998,703)
Share-based payments
-
-
-
-
-
-
-
2,128
2,128
As of September 30, 2020
1,514,022
35,647,985
5,256,504
66,396,960
(2,692,796)
8,679,505
114,802,180
138,092
114,940,272
(1)
A subsidiary holds 8,851,848 common shares.
(2)
Distribution of dividends in cash approved by the Shareholders' Meeting of the subsidiary Central Vuelta de Obligado S.A. held on April 28, 2020.
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 nine-month period ended September 30, 2021
09-30-2021
09-30-2020
Unaudited
ARS 000
ARS 000
Operating activities
Income for the period before income tax
3,933,384
14,275,254
Adjustments to reconcile income for the period before income tax to net cash flows:
Depreciation of property, plant and equipment
5,010,402
3,440,136
Amortization of intangible assets
2,146,566
2,397,503
Impairment of property, plant and equipment and intangible assets
4,260,334
2,054,624
Income from sale of property, plant and equipment
(96,324)
-
(Recovery) Discount of tax receivables
(187,567)
32,839
Interest earned from customers
(2,651,478)
(3,328,858)
Trade and tax interests lost
566,226
509,426
Finance income
(603,740)
(3,927,860)
Finance expenses
13,744,668
22,327,630
Share of the profit of associates
600,613
(102,133)
Share-based payments
-
2,128
Movements in provisions and long-term employee benefit plan expense
178,089
148,277
Foreign exchange difference for trade receivables
(5,601,329)
(10,767,383)
Loss on net monetary position
(738,572)
(11,522,065)
Working capital adjustments:
Decrease in trade and other receivables
1,355,658
14,981,087
Decrease in other non-financial assets and inventories
151,149
404,287
Decrease in trade and other payables, other non-financial liabilities and liabilities from employee benefits
(3,349,205)
(9,650,899)
18,718,874
21,273,993
Trade and tax interests paid
(566,226)
-
Interest received from customers
2,599,253
3,078,280
Income tax paid
(3,991,506)
(4,762,818)
Net cash flows provided by operating activities
16,760,395
19,589,455
Investing activities
Purchase of property, plant and equipment
(4,734,508)
(12,919,996)
Sale of property, plant and equipment
3,307,763
-
Dividends received
128,090
193,088
Sale of available-for-sale financial assets, net
(2,966,148)
(6,269,806)
Net cash flows used in investing activities
(4,264,803)
(18,996,714)
Financing activities
Bank and investment accounts overdrafts obtained (paid), net
(319,192)
(3,328,189)
Long-term loans paid
(8,669,748)
(1,891,165)
Long-term loans received
-
5,659,105
Interest and other financial costs paid
(3,463,073)
(3,307,608)
Dividends paid
(106,874)
(87,595)
Net cash flows used in financing activities
(12,558,887)
(2,955,452)
Decrease in cash and cash equivalents
(63,295)
(2,362,711)
Exchange difference and other financial results
80,808
377,769
Monetary results effect on cash and cash equivalents
(123,619)
(269,029)
Cash and cash equivalents as of January 1
381,699
2,785,396
Cash and cash equivalents as of September 30
275,593
531,425
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 CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
for the nine-month period ended September 30, 2021
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 1,714 MW.
-
Our Luján de Cuyo plants are located in Luján de Cuyo, Province of Mendoza and have an installed capacity of 571 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 330 MW and 340 tn/h of steam production. (See Note 11.3).
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.
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.
Moreover, through CP Renovables S.A. ("CPR") and its subsidiaries, Vientos La Genoveva S.A.U. and Vientos La Genoveva II S.A.U. the Group takes part on the development and performance of energy projects based on the use of renewable energy sources. In this regard, as of the issuance date of these financial statements, the Group has a total installed capacity of 373.8 MW of commercially-authorized power from sources of renewable energy, which is 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 88.2 MW; (iv) wind farm La Genoveva II 41.8 MW;
(v) wind farm Achiras 48 MW; (iv) wind farm Los Olivos 22.8 MW and (vii) wind farm Manque 57 MW.
The issuance of Group's condensed consolidated financial statements of the nine-month period ended September 30, 2021 was approved by the Company's Board of Directors on November 9, 2021.
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. Currently, the Term market has CAMMESA as sole seller, in accordance with Section 9 of SE Resolution No. 95/2013.
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 by the Secretariat of Energy lead 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. Such regulations are described in Note 1.2 to the issued consolidated financial statements for the fiscal year ended December 31, 2020.
Secretariat of Energy Resolution No. 440/2021
Through Resolution No. 440 ("Resolution 440"), published in the Official Gazette on May 21, 2021, the Secretariat of Energy established a new remuneration scheme for MEM generation agents. In this regard, Exhibits II, III, IV and V of Resolution No. 31 dated February 26, 2020 issued by the Secretariat of Energy ("Resolution 31") were replaced. Moreover, section 2 of Resolution 31, which established a system for the automatic updating of remuneration values, was repealed. In general terms, Resolution 440 increased the remuneration values of generation agents by 29% compared to Resolution 31.
It was established that for what Resolution 440 set forth (collection of the new values as from February 2021 transactions, among others), MEM generation agents must submit before CAMMESA a note -to CAMMESA's satisfaction- stating full and unconditional withdrawal of any administrative complaint or ongoing judicial procedure against the National Government, the Secretariat of Energy and/or CAMMESA, related to section 2 of Resolution 31. Dated June 17, 2021, the Company submitted the requested withdrawal note.
Secretariat of Energy Resolution No. 1037/2021
On November 2, 2021, Resolution No.1037/2021 was published in the Official Gazette, whereby the Secretariat of Energy, upon verifying a status of high energy demand in Brazil due droughts in the area, created an Exports Account where the revenue margins will be accumulated after such electric power export. Such amounts will be destined to financing energy infrastructure works.
In addition, through such Resolution, the Secretariat informed there will be an additional and temporary recognition in the remuneration of Generation Agents under the scope of Resolution 440, covering economic transactions between September 1, 2021 and February 28, 2022. Such will be defined by the Secretariat by way of future regulatory instructions.
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.
1.2.
TSM and TMB
The Group has an interest in TSM and TMB. These companies were created for managing the purchase of equipment and building the power plants and currently they operate and maintain such power plants. TSM and TMB are private, unlisted companies.
After termination of the supply agreements with TSM and TMB dated February 2, 2020 and January 7, 2020, respectively, trust agreements also terminated. As from those dates, a 90-day period commenced in which TSM and TMB and their shareholders had to perform all the company acts necessary to allow the Argentine Government to receive the corresponding shares in the capital of TSM and TMB that their contributions give them rights to.
On January 3, 2020, i.e. before the aforementioned 90-day period commenced, the Argentine Government (through the Ministry of Productive Development) served notice to the Company (together with TSM, TMB and their other shareholders and BICE, among others) stating that, according to the Final Agreement for the Re- adaptation of WEM, TSM and TMB shall perform the necessary acts to incorporate the Argentine Government as shareholder of both companies, acknowledging the same equity interest rights: 65.006% in TMB and 68.826% in TSM.
On January 9, 2020, the Company, together with the other generation shareholders of TSM and TMB, rejected such act understanding that the equity interest the Government claims does not correspond with the contributions made for the construction of power stations and that gave it right to claim such equity interest.
On March 4, 2020, the Company was notified on two notes sent by the Minister of Productive Development whereby he answered the one sent by the Company on January 9, 2020 - mentioned above -, ratifying the terms of the note notified to the Company on January 3, 2020. In March 2020, the Company raised a reconsideration motion, with higher supplementary appeal, against the Argentine Government's order for the acts mentioned above.
On May 4 and 8, 2020, the Company attended the Special Shareholder's Meetings of TMB and TSM, respectively, in which the admission of the Argentine Government as shareholder of TSM and TMB was allowed, in accordance with the shareholding interest claimed by the Argentine Government. This with the sole purpose of complying with the precedent condition established in the respective Trust Agreements, which stated that for the trusted equity -comprised, among others, by the power plants- to be transferred to the companies TSM and TMB in a 90-day period counted as from the end of the supply agreements, such companies and their shareholders (among which the Company is included) had to allow the entrance of the Argentine Government in TSM and TMB, receiving the same amount of shares representing the contributions made by the Argentine Government for the construction of the plants and giving it the right to claim such interest.
In both cases, when the mentioned Shareholders' Meetings were held, through which the Argentine Government was allowed as shareholder of TMB and TSM due to its interest claim, the Company made the corresponding reservation of rights so as to continue the abovementioned claims already commenced.
On November 19, 2020, BICE (in its capacity as trustee of both trust agreements) had the condition precedent established in the Trust Agreements fulfilled since the necessary corporate acts for the Argentine Government to be allowed as shareholder of TSM and TMB were performed. Finally, on March 11, 2021, the Argentine Government has subscribed its shares in TSM and TMB. This way, the Group´s equity interest in TSM and TMB was changed from 30.8752% to 9.6269% and from 30.9464% to 10.8312%, respectively. As of the date of these financial statements, the transference of power stations has not been made to TSM and TMB. Therefore, the Company has not recorded the equity variation the transference of such assets would produce.
On the other hand, the Company, together with the other shareholders of TSM and TMB (as guarantor within the framework and the limits stated by the Final Agreement for the Re-adaptation of WEM, Note SE no. 1368/05 and trust agreements), BICE, TSM, TMB and SE signed: a) on January 7, 2020 an amendment addenda of the Operation and Maintenance ("OMA") of Thermal Plant Manuel Belgrano and b) on January 9, 2020 an amendment addenda of the Operation and Maintenance Agreement ("OMA") of Thermal Plant San Martín, to extend the operating period until the effective transference of the trust's liquidation equity.
10
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.
2.
Basis of preparation of the consolidated financial statements
2.1.
Applied professional accounting standards
The Company prepares its condensed consolidated financial statements pursuant to the regulations in force of the Argentine Securities Commission (CNV) on Chapter III, Title IV of the CNV Regulations (N.T. 2013 as amended). Under section 1 of such section of the Regulations, companies issuing negotiable instruments must present their condensed consolidated financial statements applying Technical Resolution 26 of the Argentine Federation of Professional Councils in Economic Sciences ("FACPCE"), which resolution establishes the application of the International Financial Reporting Standards ("IFRS") issued by the International Accounting Standards Board ("IASB"), its amendments and adoption circulars of IFRS that FACPCE may establish in accordance with such Technical Resolution. Interim condensed financial statements must apply the International Accounting Standard 34 ("IAS") "Interim Financial Reporting".
2.2.
Basis of presentation and consolidation
These condensed consolidated financial statements for the nine-month period ended September 30, 2021 were prepared applying the financial information framework prescribed by CNV as mentioned in Note 2.1.
In preparing these condensed consolidated financial statements, the Group applied the significant accounting policies, estimates and assumptions described in Notes 2.3 and 2.4 of the issued financial statements for the year ended December 31, 2020.
These condensed consolidated financial statements include all the necessary information for a proper understanding by their users of the relevant facts and transactions subsequent to the issuance of the last annual financial statements for the year ended December 31, 2020 and up to the date of these interim condensed consolidated financial statements. However, these condensed consolidated financial statements include neither all the information nor the disclosures required for the annual financial statements prepared in accordance with IAS 1 (Presentation of financial statements). Therefore, these condensed consolidated financial statements must be read together with the annual financial statements for the year ended December 31, 2020.
The Group's condensed consolidated financial statements are presented in Argentine pesos, which is the Group's functional currency, and all values have been rounded to the nearest thousand (ARS 000), except when otherwise indicated.
2.2.1.
Measuring unit
The condensed consolidated financial statements as at September 30, 2021, including the figures for the previous period were restated to consider the changes in the general purchasing power of the functional currency of the Group (Argentine peso) pursuant to IAS 29 and General Resolution no. 777/2018 of the Argentine Securities Commission. Consequently, the financial statements are stated in the current measurement unit at the end of the reported period.
The effects caused by the application of IAS 29 are detailed in Note 2.2.2 to the issued consolidated financial statements for the year ended December 31, 2020.
The inflation was 36.96% and 22.29% in the nine-month periods ended September 30, 2021 and 2020, respectively.
11
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.
2.3.
Changes in accounting policies
New standards and interpretations adopted
As from the fiscal year beginning January 1, 2021, the Group has applied for the first time certain new and/or amended standards and interpretations as issued by the IASB.
Below is a brief description of the new and/or amended standards and interpretations adopted by the Group and their impact on these consolidated financial statements.
Interest Rate Benchmark Reform - Phase 2: Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16
The UK Financial Conduct Authority (FCA), which is the competent authority for the regulation of benchmarks in the UK, advocated a transition away from reliance on London Interbank Offered Rate ("LIBOR") to alternative reference rates and stated that it would no longer persuade or compel banks to submit rates for the calculation of the LIBOR rates after 2021 (the "FCA Announcement"). The FCA Announcement formed part of ongoing global efforts to reform LIBOR and other major interest rate benchmarks. At this time, the nature and overall timeframe of the transition away from LIBOR is uncertain and no consensus exists as to what rate or rates may become accepted alternatives to LIBOR.
In this sense, the IFRS amendments provide temporary reliefs which address the financial reporting effects when an interbank offered rate (IBOR) is replaced with an alternative nearly risk-free interest rate (RFR).
As of September 30, 2021, the Group has trade receivables under the CVO Agreement, described in Note 1.2
a) to the issued consolidated financial statements for the fiscal year ended December 31, 2020, as well as loans with due date after 2021, which were indexed to LIBOR and for which the replacement alternative interest rate has not been identified.
These amendments are effective for annual periods beginning on or after 1 January 2021. As of the date of these financial statements, these amendments had no significant impact.
2.4.
Property, plant and equipment and intangible assets impairment
At every period closing date, the Group evaluates if there is any triggering event of an individual component or group of property, plant and equipment that may have their value impaired. Should such event exist, the impairment test for an asset is then required, and the Group estimates the recoverable amount of such asset. The recoverable amount of an asset is the highest amount between the fair value less costs of sale of such asset and its value in use. Such recoverable amount is determined for an individual asset, unless the individual asset does not generate cash flows substantially independent from the other assets or group of assets; in such case, the cash flows of the group of assets forming the cash-generation unit to which they belong are considered. When the book value of an individual asset or a cash-generation unit exceeds its recoverable amount, the individual asset, or in its case the cash-generation unit, is considered as impaired and its value is reduced to its recoverable amount.
During current fiscal year the Group has identified as signs of potential impairment of its thermal stations cash- generation units the repeal of the price update mechanism in the spot market that was established by Resolution No. 440, as described in Note 1.1.
In order to measure the recoverability of its property, plant and equipment and its intangible assets with a limited useful life and with signs of impairment in its value the Group used their value in use. As a result of the recoverability analysis, the Group concluded that the book value of the assets that form the cash-generating units that correspond to the thermal power stations Puerto Nuevo and Nuevo Puerto, the cogeneration unit in Luján de Cuyo, the cogeneration unit Terminal 6 San Lorenzo and the hydroelectric power station Piedra del Águila, shall not exceed their recoverable value.
12
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.
CGUs Thermal Station Brigadier López and Combined cycle plant in Luján de Cuyo
During current fiscal year the Group estimated that the book value of the assets of the cash-generating unit of the Thermal Station Brigadier López exceeded its recoverable asset by 3,716,641. Therefore, an impairment charge was determined and allocated on a pro-rata basis to property, plant and equipment by 2,849,310 within items "Electric power facilities", "Lands and buildings", "Construction in progress" and "Others" and to intangible assets by 867,331 under the item "Impairment of property, plant and equipment and intangible assets" of the consolidated income statement for the nine-month period ended September 30, 2021. After recognizing this impairment, the book value of the property, plant and equipment and the intangible assets for the Thermal Station Brigadier López amounted to 9,620,259 and 2,928,392, respectively.
In addition, during current fiscal year the Group estimated that the book value of the assets of the cash generating unit of the combined cycle plant located in Luján de Cuyo exceeded its recoverable value by 543,693. Therefore, an impairment of property, plant and equipment charge was determined in the items "Electric power facilities", "Lands and buildings" and "Others" and was registered under the item "Impairment of property, plant and equipment and intangible assets" of the consolidated income statement for the nine- month period ended September 30, 2021. After recognizing such impairment, the book value of the property, plant and equipment of the Luján de Cuyo combined cycle power plant amounted to 3,850,159.
The Group determined the recoverable values, considering the remuneration scheme introduced by Resolution 440, the estimated completion date of the works of cycle closing of the Thermal Station Brigadier López and different alternatives weighted in relation with the evolution of the macroeconomic variables regarding exchange rate and inflation, which implied preparing different scenarios with different estimations of the expected cash flows, when considering such variables and assigning occurrence probabilities, based on the experience and expectations of the Group about the outcome of the uncertainties involved.
The key assumptions to estimate the value in use are as follows:
-
Gross margin: the margin was determined for the budgeted period (5 years) based on the prices of the sale of energy applied by Resolution 440 and energy supply agreements subscribed, whereas the costs were determined over the base of the costs of operation incurred in the past in both power stations. The highest cost was maintenance, which was estimated maintaining the conditions of the agreements in force with the supplier Siemens S.A. No growth rates were used to extrapolate the inflows of funds after the budgeted period, since the inflows after the last year of the budgeted period remained steady, pursuant to IAS 36.
-
Discount rate: it represents the market evaluation of the specific risks of the Company, taking into consideration the time-value of money. The calculation for the discount rate is based on the circumstances of the market participants and it is derived from the weighted average cost of capital (WACC). The WACC rate takes into consideration both the Company's debt and equity. The cost of equity is derived from the expected return of the investment, whereas the cost of debt is based on the conditions of the debt to which the rest of the market participants could access to. The specific risks of the operational segment are incorporated by applying individual beta factors, which are annually assessed from the available public information of the market.
The discount rate used for determining the value in use was 12.1%, after income tax.
Any increase in the discount rate would entail an additional depreciation for the cash-generation units Thermal Station Brigadier López and Combined cycle plant in Luján de Cuyo.
-
Macroeconomic variables: the estimated inflation and devaluation rates, as well as the exchange rates used, were obtained from external sources being those consulting firms dedicated to the local and global economic analysis, widely experienced in the market. An increase in the inflation rates over the devaluation rates regarding the variables used in the determination of the value in use would entail an additional depreciation for the cash-generation units Thermal Station Brigadier López and Combined cycle plant in Luján de Cuyo.
13
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.
3.
Operating segments
The following provides summarized information about the net income from continuing operations of the operating segments for the nine-month periods ended September 30, 2021 and 2020:
2021
Electric Power Generation from conventional sources
Electric Power Generation from renewable sources
Natural Gas Transport and Distribution (1) (2)
Others (1)
Adjustments
and Eliminations
Total
ARS 000
ARS 000
ARS 000
ARS 000
ARS 000
ARS 000
Revenues
30,070,156
7,963,036
23,051,880
1,325,477
(23,397,423)
39,013,126
Cost of sales
(17,629,084)
(2,275,782)
(17,946,011)
(1,172,543)
18,448,616
(20,574,804)
Administrative and selling expenses
(2,528,071)
(399,705)
(4,673,160)
-
4,673,160
(2,927,776)
Other operating income
8,004,286
423,330
715,408
15,702
(715,408)
8,443,318
Other operating expenses
(2,031,271)
(16,246)
(180,623)
-
180,623
(2,047,517)
Impairment of property, plant and equipment and intangible assets
(4,260,334)
-
-
-
-
(4,260,334)
Operating income
11,625,682
5,694,633
967,494
168,636
(810,432)
17,646,013
Other (expenses) income
(16,516,430)
(1,724,133)
(3,586,986)
(131,148)
2,954,216
(19,004,481)
Net (loss) income for the segment
(4,890,748)
3,970,500
(2,619,492)
37,488
2,143,784
(1,358,468)
Share in the net (loss) income for the segment
(4,890,748)
3,970,500
(523,242)
85,022
-
(1,358,468)
2020
Electric Power Generation from conventional sources
Electric Power Generation from renewable sources
Natural Gas Transport and Distribution (1) (2)
Others (1)
Adjustments
and Eliminations
Total
ARS 000
ARS 000
ARS 000
ARS 000
ARS 000
ARS 000

Revenues
31,277,793
7,013,812
33,205,766
1,802,701
(33,819,430)
39,480,642
Cost of sales
(14,265,050)
(1,798,136)
(27,473,612)
(1,433,072)
28,163,148
(16,806,722)
Administrative and selling expenses
(2,529,563)
(366,777)
(6,265,388)
-
6,265,388
(2,896,340)
Other operating income
13,801,216
340,920
779,000
(13,310)
(779,000)
14,128,826
Other operating expenses
(444,769)
(120,794)
(329,512)
(1,144)
329,512
(566,707)
Impairment of property, plant and equipment
(2,054,624)
-
-
-
-
(2,054,624)
Operating income
25,785,003
5,069,025
(83,746)
355,175
159,618
31,285,075
Other (expenses) income
(17,199,365)
(5,293,770)
(317,537)
(28,286)
288,521
(22,550,437)
Net income (loss) for the segment
8,585,638
(224,745)
(401,283)
326,889
448,139
8,734,638
Share in the net income (loss) for the segment
8,585,638
(224,745)
148,614
225,131
-
8,734,638
(1)
Includes information from associates.
(2)
Includes income (expenses) related to resale of gas transport and distribution capacity.
14
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.

4.
Revenues
9 months
3 months
01-01-2021 to
09-30-2021
01-01-2020 to
09-30-2020
07-01-2021 to
09-30-2021
07-01-2020 to
09-30-2020
ARS 000
ARS 000
ARS 000
ARS 000
Revenues from Resolution 44, Resolution 1, Resolution 19, SGE Resolution 70/2018 and amendments
18,103,152
18,485,995
6,258,027
6,276,213
Sales under contracts
18,721,540
18,677,192
6,250,896
6,631,476
Steam sales
1,208,500
1,128,417
461,783
503,849
Resale of gas transport and distribution capacity
223,314
398,958
61,078
164,526
Revenues from CVO thermal plant management
756,620
790,080
265,438
267,331
39,013,126
39,480,642
13,297,222
13,843,395
15
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.
5.
Other income and expenses
5.1.
Other operating income
9 months
3 months
01-01-2021 to
09-30-2021
01-01-2020 to
09-30-2020
07-01-2021 to
09-30-2021
07-01-2020 to
09-30-2020
ARS 000
ARS 000
ARS 000
ARS 000
Interest earned from customers
2,651,478(1)
3,328,858(1)
915,392(3)
948,438(3)
Foreign exchange difference, net
5,601,329(2)
10,767,383(2)
920,159(4)
1,493,326(4)
Recovery related to discount tax credits
187,567
-
48,403
-
Others
2,944
32,585
(27,429)
23,465
8,443,318
14,128,826
1,856,525
2,465,229
(1)
Includes 826 related to receivables under FONINVEMEM I and II Agreements for the nine-month period ended September 30, 2020. It also includes 1,296,965 y 1,698,696 related to CVO receivables for the nine-month periods ended September 30, 2021 and 2020, respectively.
(2)
Includes 27,840 related to receivables under FONINVEMEM I and II Agreements for the nine-month period ended September 30, 2020. It also includes 5,796,826 and 10,084,864 related to CVO receivables for the nine-month periods ended September 30, 2021 and 2020, respectively.
(3)
Includes 394,519 and 499,473 related to CVO receivables for the three-month periods ended September 30, 2021 and 2020, respectively.
(4)
Includes 1,093,082 and 1,653,675 related to CVO receivables for the three-month periods ended September 30, 2021 and 2020, respectively.
5.2.
Other operating expenses
9 months
3 months
01-01-2021 to
09-30-2021
01-01-2020 to
09-30-2020
07-01-2021 to
09-30-2021
07-01-2020 to
09-30-2020
ARS 000
ARS 000
ARS 000
ARS 000
Recovery (Charge) related to the provision for lawsuits and claims (Exhibit E)
6,798
(12,478)
(523)
(12,716)
Charge related to the allowance for doubtful accounts and other receivables
(1,215,085)
(11,964)
(1,217,581)
(6,463)
Trade and tax interests
(566,226)
(509,426)
(2,266)
(24,756)
Charge related to discount of tax credits
-
(32,839)
-
31,208
Income from sale of property, plant and equipment
96,324
-
96,324
-
Others
(369,328)
-
(298,740)
19,724
(2,047,517)
(566,707)
(1,422,786)
6,997
5.3.
Finance income
9 months
3 months
01-01-2021 to
09-30-2021
01-01-2020 to
09-30-2020
07-01-2021 to
09-30-2021
07-01-2020 to
09-30-2020
ARS 000
ARS 000
ARS 000
ARS 000
Interest earned
38,152
141,472
14,129
17,830
Net income on financial assets at fair value through profit or loss (1)
177,426
3,786,388
177,426
1,395,528
Interest rate swap income
388,162
-
72,725
-
603,740
3,927,860
264,280
1,413,358
(1)
Net of 15,300 and 31,339 corresponding to turnover tax for the nine-month periods ended September 30, 2021 and 2020, respectively, and net of 15,300 and 10,185 for the three-month periods ended September 30, 2021 and 2020, respectively.
16
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.

5.4.
Finance expenses
9 months
3 months
01-01-2021 to
09-30-2021
01-01-2020 to
09-30-2020
07-01-2021 to
09-30-2021
07-01-2020 to
09-30-2020
ARS 000
ARS 000
ARS 000
ARS 000
Interest on loans
(3,461,468)
(3,649,551)
(1,047,563)
(1,067,100)
Foreign exchange differences
(9,738,047)
(16,730,786)
(1,646,782)
(5,542,949)
Net loss on financial assets at fair value through profit or loss
-
-
692,757
-
Bank commissions for loans and others
(544,661)
(373,028)
(100,963)
(112,201)
Others
(492)
(1,574,265)
-
(19,872)
(13,744,668)
(22,327,630)
(2,102,551)
(6,742,122)
6.
Income tax
The major components of income tax during the nine-month periods ended September 30, 2021 and 2020, are the following:
Consolidated statements of income and comprehensive income
9 months
3 months
01-01-2021 to
09-30-2021
01-01-2020 to
09-30-2020
07-01-2021 to
09-30-2021
07-01-2020 to
09-30-2020
ARS 000
ARS 000
ARS 000
ARS 000
Current income tax
Income tax charge for the period
(4,110,080)
(5,084,946)
(1,651,850)
(1,524,549)
Adjustment related to current income tax for the prior year
137,526
146,248
-
-
Deferred income tax
Related to the net variation in temporary differences
(1,319,298)
(601,918)
583,863
(191,730)
Income tax
(5,291,852)
(5,540,616)
(1,067,987)
(1,716,279)
17
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 reconciliation between income tax in the consolidated statement of income and the accounting income multiplied by the statutory income tax rate for the nine-month periods ended September 30, 2021 and 2020, is as follows:
9 months
3 months
01-01-2021 to
09-30-2021
01-01-2020 to
09-30-2020
07-01-2021 to
09-30-2021
07-01-2020 to
09-30-2020
ARS 000
ARS 000
ARS 000
ARS 000
Income before income tax
3,933,384
14,275,254
3,756,770
5,203,154
At statutory income tax rate (1)
(1,376,684)
(4,282,576)
(1,314,869)
(1,560,945)
Share of the profit of associates
16,220
(3,479)
(5,376)
107
Effect related to statutory income tax rate change (Note 12)
(3,912,884)
731,275
-
(172,776)
Effect related to the discount of income tax payable
(179,725)
317,550
(52,944)
(66,648)
Adjustment related to current income tax for the prior year
137,526
146,248
-
-
Loss on net monetary position
(745,059)
(2,631,505)
(225,904)
355,133
Others
768,754
181,871
531,106
(271,150)
Income tax for the period
(5,291,852)
(5,540,616)
(1,067,987)
(1,716,279)
(1) The statutory income tax rate used amounts to 35% and 30% as of September 30, 2021 and 2020, respectively.
Deferred income tax
Deferred income tax relates to the following:
Consolidated statement
of financial position
Consolidated statement of
income and comprehensive income
09-30-2021
12-31-2020
09-30-2021
12-31-2020
ARS 000
ARS 000
ARS 000
ARS 000
Trade receivables
3,488
4,436
(948)
1,909
Other financial assets
(1,969)
(536)
(1,433)
403,440
Employee benefit liability
208,743
150,661
58,082
5,989
Provisions and others
(407,067)
(401,320)
(5,747)
(371,347)
Investments in associates
(1,854,793)
(1,481,155)
(373,638)
(33,875)
Property, plant and equipment - Material & spare parts - Intangible assets
(7,504,166)
(7,371,062)
(133,104)
401,222
Deferred tax income
(3,742,990)
(3,607,374)
(135,616)
141,823
Tax loss carry-forward
1,843,814
3,289,549
(1,445,735)
169,170
Tax inflation adjustment - Asset
186,677
256,059
(69,382)
(439,449)
Tax inflation adjustment - Liability
(2,242,372)
(3,030,595)
788,223
(880,800)
Deferred income tax expense
(1,319,298)
(601,918)
Deferred income tax liabilities, net
(13,510,635)
(12,191,337)
18
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.
Deferred income tax liability, net, disclosed in the consolidated statement of financial position
Consolidated statement
of financial position
09-30-2021
12-31-2020
ARS 000
ARS 000
Deferred income tax asset
1,051,052
134,739
Deferred income tax liability
(14,561,687)
(12,326,076)
Deferred income tax liability, net
(13,510,635)
(12,191,337)
7.
Financial assets and liabilities
7.1.
Trade and other receivables
09-30-2021
12-31-2020
ARS 000
ARS 000
Non-current:
Trade receivables - CAMMESA
30,224,472
40,016,764
Receivables from shareholders
394,183
248,877
Guarantee deposits
43
59
30,618,698
40,265,700
Current:
Trade receivables - CAMMESA
16,846,535
19,205,306
Trade receivables - YPF SA and YPF Energía Eléctrica SA
456,872
362,458
Trade receivables - Large users
1,380,213
1,606,066
Receivables from associates and other related parties
50
66
Other receivables
4,381,518
4,504,285
23,065,188
25,678,181
Allowance for doubtful accounts - Exhibit E
(9,881)
(18,992)
23,055,307
25,659,189
FONINVEMEM I and II: During the nine-month periods ended September 30, 2021 collections of these receivables amounted to 459,228. As mentioned in Note 1.2.a) to the issued consolidated financial statements for the year ended December 31, 2020, during January and February 2020 we collected the last installments from the total 120 installments that were established by TMB and TSM agreements, respectively.
CVO receivables: As described in Note 1.2.a) to the issued consolidated financial statements as of December 31, 2020, in 2010 the Company approved a new agreement with the former Energy Secretariat (the "CVO agreement") and as from March 20, 2018, CAMMESA granted the commercial operations as a combined cycle of Central Vuelta de Obligado thermal power plant (the "Commercial Approval").
Receivables under CVO agreement are disclosed under "Trade receivables - CAMMESA". CVO receivables are expressed in USD and they accrue LIBOR interest at a 5% rate.
As a consequence of the Commercial Approval and in accordance with the CVO agreement, the Company collects the CVO receivables converted in US dollars in 120 equal and consecutive installments.
During the nine-month period ended September 30, 2021 and 2020, collections of CVO receivables amounted to 5,743,940 and 6,566,092, respectively.
The information on the Group's objectives and credit risk management policies is included in Note 17 to the issued consolidated financial statements as of December 31, 2020.
19
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 breakdown by due date of trade and other receivables due as of the related dates is as follows:
Past due
Total
To due
90
days
90-180
days
180-270
days
270-360
days
More than 360 days
ARS 000
ARS 000
ARS 000
ARS 000
ARS 000
ARS 000
ARS 000
09-30-21
53,683,886
47,530,113
6,142,162
-
-
-
11,611
12-31-20
65,943,881
61,786,947
4,119,987
3,210
17,329
37
16,371
7.2.
Trade and other payables
09-30-2021
12-31-2020
ARS 000
ARS 000
Current:
Trade and other payables
4,040,844
3,284,878
Insurance payable
-
162,744
Payables to associates and other related parties
65,966
38,632
4,106,810
3,486,254
Trade payables are non-interest bearing and are normally settled on 60-day terms.
The information on the Group's objectives and financial risk management policies is included in Note 17 to the issued consolidated financial statements as of December 31, 2020.
For the terms and conditions of payables to related parties, refer to Note 10.
7.3.
Other loans and borrowings
09-30-2021
12-31-2020
ARS 000
ARS 000
Non-current
Long-term loans for project financing (Notes 7.3.1, 7.3.2, 7.3.3, 7.3.4, 7.3.5, 7.3.6 and 7.3.7)
31,705,838
36,917,906
Corporate bonds (Note 7.3.8)
3,297,406
4,036,145
Derivative financial liabilities not designated as hedging instrument - Interest rate swap
625,355
1,290,439
35,628,599
42,244,490
Current
Long-term loans for project financing (Notes 7.3.1, 7.3.2, 7.3.3, 7.3.4, 7.3.5, 7.3.6 and 7.3.7)
10,159,040
24,208,716
Corporate bonds (Note 7.3.8)
-
1,542,939
Derivative financial liabilities not designated as hedging instrument - Stock options
170,277
395,774
Bank and investment accounts overdrafts
1,084,669
1,414,615
11,413,986
27,562,044
7.3.1.
Loans from the IIC-IFC Facility
On October 20, 2017 and January 17, 2018, CP La Castellana S.A.U. and CP Achiras S.A.U. (both of which are subsidiaries of CPR), respectively, agreed on the structuring of a series of loan agreements in favor of CP La Castellana S.A.U. and CP Achiras S.A.U., for a total amount of USD 100,050,000 and USD 50,700,000, respectively, with: (i) International Finance Corporation (IFC) on its own behalf, as Eligible Hedge Provider and as an implementation entity of the Intercreditor Agreement Managed Program; (ii) Inter-American Investment Corporation ("IIC"), as lender on its behalf, acting as agent for the Inter-American Development Bank ("IDB") and on behalf of IDB as administrator of the Canadian Climate Fund for the Private Sector in the Americas ("C2F", and together with IIC and IDB, "Group IDB", and together with IFC, "Senior Creditors").
20
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.
As of the date of these financial statements, the loans disbursements have been fully received by the Group.
In accordance with the terms of the agreement subscribed by CP La Castellana, USD 5 million accrue an interest rate equal to LIBOR plus 3.5%, and the rest at LIBOR plus 5.25% and the loan is amortizable quarterly in 52 equal and consecutive installments as from February 15, 2019.
In accordance with the terms of the agreement subscribed by CP Achiras, USD 40.7 million accrue a fixed interest rate equal to 8.05%, and the rest accrue a 6.77% fixed interest rate. The loan is amortizable quarterly in 52 equal and consecutive installments as from May 15, 2019.
Other related agreements and documents, such as the Guarantee and Sponsor Support Agreement (the "Guarantee Agreement" by which CPSA completely, unconditionally and irrevocably guarantees, as the main debtor, all payment obligations undertaken by CP La Castellana and CP Achiras until the projects reach the commercial operations date) hedging agreements, guarantee trusts, a mortgage, guarantee agreements on shares, guarantee agreements on wind turbines, direct agreements and promissory notes have been signed.
Pursuant to these agreements, CP Achiras, CP La Castellana and the Company have undertaken some obligations, which are described in Note 10.3.1 to the issued financial statements as at December 31, 2020. As of September 30, 2021, the Group has met such obligations.
Under the subscribed trust guarantee agreement, as at September 30, 2021 and as of December 31, 2020, there are trade receivables with specific assignment for the amounts of 2,803,691 and 3,823,838, respectively.
As of September 30, 2021, and as of December 31, 2020, the balance of these loans amounts to 11,629,551 and 14,619,246, respectively.
7.3.2.
Borrowing from Kreditanstalt für Wiederaufbau ("KfW")
On March 26, 2019 the Company entered into a loan agreement with KfW for an amount of USD 56 million in relation to the acquisition of two gas turbines, equipment and related services relating to the Luján de Cuyo project described in Note 11.3.
In accordance with the terms of the agreement, the loan accrues an interest equal to LIBOR plus 1.15% and it is amortizable quarterly in 47 equal and consecutive installments as from the day falling six months after the commissioning of the gas turbines and equipment.
Pursuant to the loan agreement, among other obligations, CPSA has agreed to maintain a debt ratio of (a) as at December 31, 2020 of no more than 4.00:1.00 and (b) as from that date, no more than 3.5:1.00. As at September 30, 2021, the Company has complied with that requirement.
During 2019 the disbursements for this loan were fully received for a total amount of USD 55.2 million.
As at September 30, 2021 and December 31, 2020, the balance of this loan amounts to 3,695,298 and 4,802,443, respectively.
7.3.3.
Loan from Citibank N.A., JP Morgan Chase Bank N.A. and Morgan Stanley Senior Funding INC.
On September 12, 2019, the Company entered into a loan agreement with Citibank N.A., JP Morgan Chase Bank N.A. and Morgan Stanley Senior Funding INC. for USD 180 million to fund the acquisition of the Thermal Station Brigadier López, as well as to fund future capital expenses and other expenses.
Pursuant to the agreement, this loan accrues an adjustable interest rate based on LIBOR plus a margin.
Pursuant to the loan agreement, among other obligations, CPSA has agreed to maintain (i) a debt ratio of no more than 2.25:1.00; (ii) an interest coverage ratio of no more than 3.50:1.00 and (iii) and a minimum equity of USD 500 million. As at September 30, 2021, the Company has complied with such obligations.
21
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.
On June 14, 2019 the loan funds were fully disbursed.
As mentioned in Note 12, on September 15, 2020, BCRA issued Communication "A" 7106, which established certain access restrictions to the foreign exchange market for the repayment of the financial debt in which it allows payment of up to 40% of installments higher than USD 1 million becoming due between October 15, 2020 and March 31, 2021, establishing that a refinancing plan should be submitted for the outstanding amounts, which shall fulfill certain conditions established in the regulation, such as that repayment must have an average life higher than 2 years. This way, the loan installments becoming due between December 2020 and March 2021 were under the scope of the provisions of such regulation.
On December 22, 2020, the Company signed an amendment to the loan, modifying, among others, the amortization schedule so as to comply with the requirements established by Communication "A" 7106, partially postponing installments becoming due in December 2020 and March 2021, extending the final payment term to June 2023, including monthly amortizations as from January 2021 until January 2022, and keeping the amortizations in the initial schedule for June, September and December 2021, each of them equal to 20% of capital. In December 2020, 40% of the installment for such month was paid, complying with the regulations in force and the abovementioned amendment. Amongst others, the amendment involves a two basic points increase in the interest rates as from December 12, 2020.
Other changes derived from the amendment include: a limitation to make dividends payment during 2021, and a USD 25 million maximum allowed for 2022. Moreover, a collateral agreement was signed, which includes the pledge on turbines of Brigadier López Thermal Station, a mortgage on the land in which such power station is located and a LVFDV passive collection collateral assignment.
On June 15, 2021, the Company signed a new amendment, in accordance with Communication "A" 7230 issued by BCRA, as described in Note 12, which changed the amortization schedule, rescheduling 60% of installments, whose original maturity date operated in June, September and December 2021, and extending the loan's final term up to January 2024. The schedule in force, which includes this amendment and the one dated December 22, 2020, foresees monthly amortizations until January 2022, one amortization in June 2023 for the amount of USD 34.128 million and the last amortization in January 2024 for the amount of USD 55.1 million. Moreover, the financial commitments and obligations undertaken in the first amendment are kept.
This new amendment also implied a 125 basic-point increase in the applicable interest rate as from June 12, 2021 and the dividend payment restriction is maintained until 2021, as well as the USD 25 million limitation for 2022. During 2023, the highest dividend payment allowed is USD 20 million.
In June 2021, 40% of the installment becoming due in such month was paid; therefore, the mentioned amendment was fulfilled within the regulations in force.
As at September 30, 2021, and as of December 31, 2020, the balance of the loan amounts to 11,500,523 and 18,928,740, respectively.
7.3.4.
Loan from the IFC to the subsidiary Vientos La Genoveva S.A.U.
On June 21, 2019, Vientos La Genoveva S.A.U., a CPSA subsidiary, entered into a loan agreement with IFC on its own behalf, as Eligible Hedge Provider and as an implementation entity of the Managed Co-Lending Portfolio Program (MCPP) administered by IFC, for an amount of USD 76.1 million.
Pursuant to the terms of the agreement subscribed with Vientos La Genoveva S.A.U., this loan accrues an interest rate equal to LIBOR plus 6.50% and it is amortizable quarterly in 55 installments as from November 15, 2020.
Other related agreements and documents, such as the Guarantee and Sponsor Support Agreement (the "Guarantee Agreement" by which CPSA completely, unconditionally and irrevocably guarantees, as the main debtor, all payment obligations undertaken by Vientos La Genoveva S.A.U until the project reaches the commercial operations date) hedging agreements, guarantee trusts, guarantee agreements on shares, guarantee agreements on wind turbines, direct agreements and promissory notes have been signed.
22
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.
Pursuant to these agreements, the Company have undertaken some obligations, which are described in Note 10.3.4 to the issued financial statements as at December 31, 2020. As of September 30, 2021, the Group has met such obligations.
Under the subscribed trust guarantee agreement, as at September 30, 2021, and as of December 31, 2020, there are trade receivables with specific assignment for the amounts of 306,344 and 106,773, respectively.
On November 22, 2019 the loan funds were fully disbursed. As at September 30, 2021 and December 31, 2020, the balance of the loan amounts to 6,914,716 and 8,398,823, respectively.
7.3.5.
Loan from Banco de Galicia y Buenos Aires S.A. to CPR Energy Solutions S.A.U.
On May 24, 2019, CPR Energy Solutions S.A.U. (subsidiary of CPR) entered into a loan agreement with Banco de Galicia y Buenos Aires S.A. for an amount of USD 12.5 million to fund the construction of the wind farm "La Castellana II".
According to the executed agreement, this loan accrues a fixed interest rate equal to 8.5% during the first year and it is amortizable quarterly in 25 installments as from May 24, 2020.
Other agreements and related documents, like the Collateral (in which CPSA totally, unconditionally and irrevocably guarantees, as main debtor, all the payment obligations assumed by CPR Energy Solutions S.A.U. until total fulfillment of the guaranteed obligations or until the project reaches the commercial operation date, what it happens first) -, guarantee agreements on shares, guarantee agreements on wind turbines, promissory notes and other agreements have been executed.
Pursuant to these agreements, the Company have undertaken some obligations, which are described in Note 10.3.5 to the issued financial statements as at December 31, 2020. As of September 3, 2021, CPR Energy Solutions S.A.U. has fulfilled all the requirements and conditions to prove the occurrence of the project's compliance date. As a result, the Collateral posted by the Company was released and CPSA is not subject any more to the obligations described in Note 10.3.5 to the issued financial statements as at December 31, 2020.
On May 24, 2019 the loan funds were fully disbursed. As at September 30, 2021 and December 31, 2021, the balance of this loan amounts to 948,015 and 1,251,758, respectively.
7.3.6.
Loan from Banco Galicia y Buenos Aires S.A. to subsidiary Vientos La Genoveva II S.A.U.
On July 23, 2019, subsidiary Vientos La Genoveva II S.A.U. entered into a loan agreement with Banco de Galicia y Buenos Aires S.A. for an amount of USD 37.5 million.
According to the executed agreement, this loan accrues LIBOR plus 5.95% and it is amortizable quarterly in 26 installments starting on the ninth calendar month counted from the disbursement date.
Other agreements and related documents, like the Collateral (in which CPSA totally, unconditionally and irrevocably guarantees, as main debtor, all the payment obligations assumed by Vientos La Genoveva II S.A.U. until total fulfillment of the guaranteed obligations or until the project reaches the commercial operation date, what it happens first) -, guarantee agreements on shares and promissory notes have been signed, while guarantee agreements on wind turbines and direct agreements are in process of being issued, under the terms defined by the loan agreement.
Pursuant to these agreements, the Company have undertaken some obligations, which are described in Note 10.3.6 to the issued financial statements as at December 31, 2020. As of September 3, 2021, Vientos La Genoveva II S.A.U. has fulfilled all the requirements and conditions to prove the occurrence of the project's compliance date. As a result, the Collateral posted by the Company was released and CPSA is not subject any more to the obligations described in Note 10.3.6 to the issued financial statements as at December 31, 2020.
23
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.
On July 23, 2019, the loan funds were fully disbursed. As of September 30, 2021 and December 31, 2020, the balance of this loan amounts to 2,752,667 and 3,713,190, respectively.
7.3.7.
Financial trust corresponding to Thermal Station Brigadier López
Within the framework of the acquisition of Thermal Station Brigadier López, the Company assumed the capacity of trustor in the financial trust previously entered into by Integración Energética Argentina S.A., which was the previous holder of the thermal station. The financial debt balance at the transfer date of the thermal station was USD 154,662,725.
According to the provisions of the trust agreement, the financial debt accrues an interest rate equal to the LIBO rate plus 5% or equal to 6.25%, whichever is higher, and it is monthly amortizable. As of September 30, 2021, 11 installments are to be amortized and the financial debt balance amounts to 4,424,108. As of December 31, 2020, the balance of this loan amounted to 9,412,421.
Under the subscribed trust guarantee agreement, as at September 30, 2021, and December 31, 2020, there are trade receivables with specific assignment for the amounts of 584,534 and 540,583, respectively.
7.3.8.
CP Manque S.AU. and CP Los Olivos S.A.U. Program of Corporate Bonds
On August 26, 2020, under Resolution No. RESFC-2020 - 20767 - APN.DIR#CNVM, the public offering of the Global Program for the Co-Issuance of Simple Corporate Bonds (not convertible into shares) by CP Manque S.A.U. and CP Los Olivos S.A.U. (both subsidiaries of CPR, and together the "Co-issuers") for the amount of up to USD 80,000,000 was authorized. By virtue of such program, the Co-Issuers may issue corporate bonds, of different class and/or series, that may qualify as social, green and sustainable marketable securities under the criteria established by CNV in that regard.
Within the framework of the mentioned program, on September 2, 2020, Corporate Bonds Class I were issued for an amount of USD 35.160.000 at a fix 0% interest rate expiring on September 2, 2023; and Corporate Bonds Class II were issued for 1,109,925 at a variable interest rate equivalent to BADLAR, plus an applicable margin of 0.97% expiring on September 2, 2021. After such maturity date, Corporate Bonds Class II were fully paid.
On June 24, 2020, the Board of Directors of CPSA decided to guarantee unconditionally the co-emission of corporate bonds of its subsidiaries CP Manque S.A.U. and CP Los Olivos S.A.U. (the "Guarantee"). The Guarantee is an obligation with a common guarantee, not subordinated and unconditional. And, it shall have, at all times, the same priority rank regarding the non-guaranteed and unsubordinated obligations, present and future, of the Company. The Guarantee was instrumented through the signature of the Company in its capacity as co-signer of the permanent global certificates deposited in Caja de Valores S.A., in which the Corporate Bonds Class I and Corporate Bonds Class II of CP Manque S.AU. and CP Los Olivos S.AU. are represented.
7.3.9.
CPSA Program of Corporate Bonds
On July 31, 2020, the Special Shareholders' Meeting of the Company approved the creation of a new global issuance program of corporate bonds for a maximum amount of up to USD 500,000,000 (or its equivalent in other currency), which shall be issued at short, mid or long term, simple, not convertible into shares, under the terms of the Corporate Bonds Act (the "Program"). Moreover, the Board of Directors was granted the powers to determine and establish the conditions of the Program and of the corporate bonds to be issued under it provided they had not been expressly determined at the Shareholders' Meeting. On October 29, 2020, CNV approved the creation of such program, which shall expire on October 29, 2025, in accordance with the regulations in force.
7.4.
Quantitative and qualitative information on fair values Valuation techniques
The fair value reported in connection with the financial assets is the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.
24
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.
Fair value of quoted debt securities, mutual funds and stocks and corporate bonds is based on price quotations at the end of each reporting period.
The fair value of the foreign currency forward contracts is calculated based on appropriate valuation techniques that use market observable data.
Fair value hierarchy
The following tables provides, by level within the fair value measurement hierarchy, the Company's financial assets, that were measured at fair value on recurring basis as of September 30, 2021 and December 31, 2020:
09-30-2021
Measurement date
Fair value measurement using:
Total
Level 1
Level 2
Level 3
ARS 000
ARS 000
ARS 000
ARS 000
Assets measured at fair value
Financial assets at fair value through profit or loss
Mutual funds
09.30.2021
1,829,810
1,829,810
-
-
Public debt securities
09.30.2021
14,343,640
14,343,640
-
-
Stocks and corporate bonds
09.30.2021
489,814
489,814
-
-
Total financial assets measured at fair value
16,663,264
16,663,264
-
-
Liabilities measured at fair value
Derivative financial liabilities not designated as hedging instruments
Interest rate swap
09.30.2021
625,355
-
625,355
-
Stock options
09.30.2021
170,277
170,277
-
-
Total financial liabilities measured at fair value
795,632
170,277
625,355
-
12-31-2020
Measurement date
Fair value measurement using:
Total
Level 1
Level 2
Level 3
ARS 000
ARS 000
ARS 000
ARS 000
Assets measured at fair value
Financial assets at fair value through profit or loss
Mutual funds
12.31.2020
1,080,997
1,080,997
-
-
Public debt securities
12.31.2020
16,635,923
16,635,923
-
-
Stocks and corporate bonds
12.31.2020
1,561,701
1,561,701
-
-
Total financial assets measured at fair value
19,278,621
19,278,621
-
-
Liabilities measured at fair value
Derivative financial liabilities not designated as hedging instruments
Interest rate swap
12.31.2020
1,290,439
-
1,290,439
-
Stock options
12.31.2020
395,774
395,774
-
-
Total financial liabilities measured at fair value
1,686,213
395,774
1,290,439
-
There were no transfers between hierarchies and there were not significant variations in assets values.
25
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 information on the Group's objectives and financial risk management policies is included in Note 17 to the issued financial statements as at December 31, 2020.

8.
Non-financial assets and liabilities
8.1.
Other non-financial assets
09-30-2021
12-31-2020
ARS 000
ARS 000
Non-current:
Tax credits
56,814
392,142
Income tax credits
193,282
264,715
Prepayments to vendors
4,511
6,178
254,607
663,035
Current:
Upfront payments of inventories purchases
136,933
162,112
Prepayment insurance
113,165
159,764
Tax credits
499,838
861,794
Other
275,132
49,446
1,025,068
1,233,116
8.2.
Other non-financial liabilities
09-30-2021
12-31-2020
ARS 000
ARS 000
Non-current:
VAT payable
5,252,073
6,953,966
Tax on bank account transactions payable
201,115
242,217
5,453,188
7,196,183
Current:
VAT payable
3,450,569
2,569,821
Turnover tax payable
78,326
73,745
Income tax withholdings payable
67,532
54,489
Concession fees and royalties
54,284
86,171
Tax on bank account transactions payable
178,470
295,804
Others
10,608
3,164
3,839,789
3,083,194
8.3.
Compensation and employee benefits liabilities
09-30-2021
12-31-2020
ARS 000
ARS 000
Non-current:
Employee long-term benefits
447,528
430,886
Current:
Vacation and statutory bonus
638,847
566,050
Contributions payable
121,195
176,732
Bonus accrual
425,430
609,556
Other
40,991
43,152
1,226,463
1,395,490
26
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.
9.
Equity reserves
On April 30, 2020, the Shareholders' Meeting of the Company approved to increase the legal reserve in the amount of 821,225 and to allocate the remaining unappropriated earnings as of December 31, 2019 to increase the voluntary reserve by 16,965,785.
On April 30, 2021, the Shareholders' Meeting of the Company approved to increase the legal reserve in the amount of 471,952 and to allocate the remaining unappropriated earnings as of December 31, 2020 to increase the voluntary reserve by 8,967,080.
10.
Information on related parties
The following table provides the transactions performed and the accounts payable to/receivable from related parties during the corresponding period/year:
Income
Expenses
Receivables
Payables
ARS 000
ARS 000
ARS 000
ARS 000
Associates:
Termoeléctrica José de San Martín S.A.
09-30-2021
411
-
50
-
09-30-2020
602
-
78
-
12-31-2020
774
-
66
-
Distribuidora de Gas Cuyana S.A.
09-30-2021
-
316,787
-
65,418
09-30-2020
-
394,675
-
41,481
12-31-2020
-
508,014
-
37,881
Energía Sudamericana S.A.
09-30-2021
-
-
-
548
09-30-2020
-
-
-
836
12-31-2020
-
-
-
751
Related companies:
RMPE Asociados S.A.
09-30-2021
185
588,462
-
-
09-30-2020
271
611,487
-
-
12-31-2020
348
745,617
-
-
Coyserv S.A.
09-30-2021
-
-
-
-
09-30-2020
-
4,053
-
-
12-31-2020
-
4,053
-
-
Total
09-30-2021
596
905,249
50
65,966
09-30-2020
873
1,010,215
78
42,317
12-31-2020
1,122
1,257,684
66
38,632
Balances and transactions with shareholders
As at September 30, 2021 and 2020, there is a balance of 394,183 and 277,068 shareholders, respectively, corresponding to the personal property tax entered by the Company under the substitute decision maker scheme.
On June 24, 2020, the Board of Directors of the Company authorized the purchase of 30% of the capital stock of the subsidiary CP Renovables S.A. to its minority shareholder, representing 993,993,952 shares, at a value of US Dollars 0.034418 per share, which was completely paid through the transfer of financial assets. Based on the Audit Committee's report, the Board of the Company determined that such transaction is an arm´s length transaction.
27
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.
This transaction was accounted for as a transaction with non-controlling interest in accordance with IFRS 10. Consequently, the difference of 2,692,796 between the book value of the non-controlling interest at the transaction date and the fair value of the consideration paid was directly recognized in equity and attributed to holders of the parent.
This way, CPSA's interest in the subsidiary CP Renovables S.A. amounts to 100% of the capital stock as at September 30, 2021.
Terms and conditions of transactions with related parties
Balances at the related reporting period-ends are unsecured and interest free. There have been no guarantees provided or received for any related party receivables or payables.
For the nine-month periods ended September 30, 2021 and 2020, the Company has not recorded any impairment of receivables relating to amounts owed by related parties. This assessment is undertaken at the end of each reporting period by examining the financial position of the related party and the market in which the related party operates.
11.
Contracts and agreements
11.1.
Acquisition of two Siemens gas turbines
On May 27th, 2016, the Company acquired from Siemens two gas turbines for electric power generation composed by a turbine and a generator with 298 MW output power, and the proper ancillary equipment and maintenance and assistance services.
During September 2021, the Company sold such equipment to UNIPER KRAFTWERKE GMBH and UNIPER HUNGARY Kft. for the amount of USD 33,750,000.
11.2.
Renewable Energy generation farms
In 2017 the Group entered into a power purchase agreement with CAMMESA for La Castellana and Achiras wind farms for a 20-year term as from the launch of the commercial operations. Likewise, during 2018 the Group entered into a power purchase agreement with CAMMESA for La Genoveva wind farm for a 20-year term as from the launch of the commercial operations.
Regarding wind farm La Castellana II, the Group entered into supply agreements with Rayen Cura S.A.I.C. for a 7-year term and approximately 35,000 MWh/year volume, with Metrive S.A. for a 15-year term and 12,000 MWh/year volume, with N. Ferraris for a 10-year term and 6,500 MWh/year volume and with Banco de Galicia y Buenos Aires S.A. for a 10-year term to supply energy demand for approximately 4,700 MWh/year.
Regarding wind farm La Genoveva II, the Group entered into supply agreements with Aguas y Saneamiento S.A. (AYSA) for a 10-year term from the beginning of operations date of the wind farm and approximately 87.6 GWh/year volume, with PBB Polisur S.R.L. (Dow Chemical) for a term of 6 years and an estimated volume of 80 GWh/year, with Farm Frites for a 5-year term and 9.5 GWh/year volume and with BBVA for a 5-year term and 6 GWh/year volume.
Regarding wind farm Manque, the Group entered into a power purchase agreement with Cervecería y Maltería Quilmes SAICAyG ("Quilmes") for the wind farm Manque for a 20-year term as from the launch of the commercial operations and for an estimated volume of 235 GWh per year.
Regarding the wind farm Los Olivos, the Group entered into power purchase agreements with S.A. San Miguel A.G.I.C.I. y F., Minera Alumbrera Limited and SCANIA Argentina S.A.U. for a 10-year term as from the launch of commercial operations, to supply them 8.7 GWh/year and 27.4 GWh/year and 20.2 GWh/year, respectively.
28
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.
11.3.
Awarding of co-generation projects
On September 25, 2017, the Company was awarded through Resolution SEE 820/2017 with two co-generation projects called "Terminal 6 San Lorenzo" with a capacity of 330 MW and Luján de Cuyo (within our Luján de Cuyo plant) with a capacity of 93 MW.
On January 4, 2018, the Company entered into power purchase agreements with CAMMESA for each of the mentioned projects for a 15-year term as from the launch of commercial operations. The Group has posted a guarantee for the fulfillment of the "Terminal 6 San Lorenzo" cogeneration project.
On December 15, 2017, we executed a new steam supply contract with YPF for a 15-year term that began when the new co-generation unit at our Luján de Cuyo plant started operations.
Also, on December 27, 2017, we entered into a steam supply agreement with T6 Industrial S.A. for the new co-generation unit at our Terminal 6 San Lorenzo plant for a 15 year-term counted as from the commencement of the cogeneration unit's commercial operations.
On October 5, 2019, the commercial operation of the new cogeneration unit Luján de Cuyo started. On November 21, 2020, the open cycle commercial operation of cogeneration unit Terminal 6 San Lorenzo started, while on August 15, 2021, the power station launched operations at combined cycle. On October 31, 2021, commencement of the cogeneration unit's commercial operations was completed as the steam supply agreement commenced.
12.
Measures in the Argentine economy
Foreign exchange market
As from December 2019, the BCRA issued a series of communications whereby it extended indefinitely the regulations on Foreign Market and Foreign Exchange Market issued by BCRA that included regulations on exports, imports and previous authorization from BCRA to access the foreign exchange market to transfer profits and dividends abroad, as well as other restrictions on the operation in the foreign exchange market.
Particularly, as from September 16, 2020, Communication "A" 7106 established, among other measures referred to human persons, the need for refinancing the international financial indebtedness for those loans from the non-financial private sector with a creditor not being a related counterparty of the debtor expiring between October 15, 2020 and March 31, 2021. The affected legal entities were to submit before the Central Bank a refinancing plan under certain criteria: that the net amount for which the foreign exchange market was to be accessed in the original terms did not exceed 40% of the capital amount due for that period and that the remaining capital had been, as a minimum, refinanced with a new external indebtedness with an average life of 2 years. This point shall not be applicable when indebtedness is taken from international entities and official credit agencies, among others. On February 25, 2021, through Communication "A" 7230, BCRA broadened the regulation scope to all those debt installments higher than USD 2 million becoming due between April 1 and December 31, 2021. The effects of these regulations for the Company are described in Note 7.3.3.
On July 10, 2021, new measures issued by BCRA and CNV were released. These measures established additional restrictions to the operations in the foreign exchange market, which include the following:
-
The 90-day term established by Communication A "7030", whereby to access the foreign exchange market an affidavit on the non-performance of "liquidation cash" operations in the preceding and following 90 days must be submitted, will apply not only to operations expressed as securities sale with foreign currency liquidation or as securities transferences to entities depositing abroad, but also to the securities in exchange of other foreign assets as from July 12, 2021.
29
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 90-day term will apply not only to the operations performed by the company accessing the foreign exchange market, but also in the case in which the company delivers Argentine Ps. or liquidated local assets to a direct controlling shareholder as from July 12, 201, except in those directly associated to usual operations of goods and/or services acquisition.
Income Tax
On June 16, 2021, the Argentine Executive Power passed Law No. 27630, which established changes in the corporate income tax rate for the fiscal periods commencing as from January 1, 2021. Such law establishes payment of the tax based on a structure of staggered rates regarding the level of accumulated taxable net income. The scale consists of three segments: 25% up to an accumulated taxable net income of 5 million Ps.; 30% for the excess of such amount up to 50 million Ps.; and 35% for the excess of such amount. The estimated amounts in this scale will be annually adjusted as from January 1, 2022, considering the annual variation of the consumer price index provided by the INDEC corresponding to October of the year prior to the adjustment compared with the same month of the previous year.
13.
Restrictions on income distribution
Pursuant to the General Legal Entities Law and the Bylaws, 5% of the profits made during the fiscal year must be assigned to the statutory reserve until such reserve reaches 20% of the Company's Capital Stock.
Within the framework of the amendments to the loan agreement with Citibank N.A., JP Morgan Chase Bank N.A. and Morgan Stanley Senior Funding INC described in Note 7.3.3, there is a restriction for the payment of dividends until 80% of the loan's principal and interest are paid. Thus, during 2021 no dividends can be paid while during 2022 and 2023 dividends can be paid up to USD 25 million and USD 20 million, respectively.
14.
COVID-19
On March 11, 2020, the World Health Organization characterized the COVID-19 as a pandemic. Hence, several measures have been undertaken by the Argentine government and other governments around the globe in order to control the outbreak of this contagious disease.
In this regard, on March 20, 2020 the Argentine Government issued Decree No. 297/2020 establishing a preventive and mandatory social isolation policy ("the Quarantine" or "ASPO" -for its acronym in Spanish-, indistinctly) as a public health measure to contain the effects of the COVID-19 outbreak. Such decree established that persons must refrain from going to their workplaces, and may not travel along routes, roads or public spaces. As from the adoption of the Quarantine, the government has extended it in many opportunities and it has ordered the preventive and mandatory social distancing ("DISPO" -for its acronym in Spanish-). Subsequently, the Argentine Executive Power ordered the "General Prevention Measures". The last one of these measures was issued through Decree No. 678/2021 published in the Official Gazette on October 1, 2021 and it is in force until December 31, 2021.
Moreover, as an additional measure to control the virus in Argentina, several restrictions were imposed on the entering of people to the country and on international flights. As of the issuance date of these financial statements, these restrictions are in force until December 31, 2021.
Pursuant to Decree 297/2020, minimum shifts ensuring the operation and maintenance of electric energy generators were exempted from the Quarantine. Furthermore, on April 7, 2020, pursuant to Administrative Decision 468/2020 issued by the Presidency of the Cabinet of Ministers, the construction of private sector energy infrastructure was included within the activities exempted from the ASPO.
30
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.

Some of the main identified impacts that this crisis has and may have in the future for the Company are the following:
Operations - Power generation
-
Reduction in the electric energy dispatched. Due to the Quarantine, most of the businesses in Argentina, especially in the industrial sector have experienced difficulties in their normal operations. At the beginning of Quarantine the total electric energy demand had significantly declined, and even as of this date the demand has returned to values similar to the ones previous to the pandemic, this situation significantly impacted on the Group's generation of thermal power in such period and it continuous affecting it to date -but to a lower extent-, in particular our units with higher heat rate (less efficient).
-
Increased delays in payments and/or risk of uncollectability from the Group's private clients. Despite the fact that CAMMESA is paying its obligations, the reduced economic activity due to the Quarantine also affected the cash flow of CAMMESA and the cash flow of our private clients. Even if as of this date the situation has considerably improved, there still exists the risk of delay in the payment of private clients and, therefore, the risk of uncollectability of private clients.
-
Personnel safeguard. Multiple measures to protect the health of all the Group´s operations and maintenance personnel have been taken. Some of those measures include: a) the isolation of the teams that operate the Group's different units preventing contact between different teams, b) the avoidance of contact between personnel of different shifts, c) the use of extra protection, and additional sanitary measures, d) using virtual meetings, e) identify key personnel in order to have the necessary back up teams should a contingency arise, f) drafting and publication of health and safety plans and/or protocols both for the plants in operation and works in development. These measures have been effective to protect the Group's personnel, and at the date of these financial statements, a low contagion level has been registered within the Group's personnel.
-
Lack of necessary supplies/equipment, or delays in supplies. The Quarantine may also affect the provision of essential supplies. Although the provision of the necessary supplies is also considered an essential activity under the enacted emergency framework and usually a stock of spare parts is kept as backup, the Company cannot assure that the provision of the necessary supplies will not be affected. Furthermore, the measures taken by foreign countries in which some of the Group's supplies and spare parts are produced, may also affect the Group's stock of spare parts. Any delay in the provision of essential equipment or supplies may affect the Group's operations.
Projects under construction/development
COVID-19 outbreak has had an impact on the projects that were under construction. Therefore, there have been delays in the completion dates originally set.
Since the issuance of Administrative Decision 468/2020 abovementioned, the project construction activities were resumed. This required the implementation of health safety measures according to the requests established and recommended by health authorities. Regard being had to the foregoing, a procedure and a protocol were drafted, which have to be complied with by the personnel, contractors and subcontractors.
Regarding the construction of the Terminal 6-San Lorenzo thermal plant described in Note 11.3, once the aforementioned Administrative Decision 468/2020 was issued, construction was resumed on April 27, 2020. Additionally, as mentioned above, travel restrictions and national borders lockdown imposed by the government, among others, may delay the arrival of necessary personnel for the project, some of which were expected to arrive from countries affected by the outbreak. The Company notified CAMMESA and the Energy Secretariat on the situation and requested: (i) the suspension of agreement terms as from March 20, 2020 and until the situation is normalized, and (ii) the non-application of sanctions for the case in which the Company cannot comply with the committed dates on the Wholesale Demand Agreement entered into with CAMMESA mentioned in Note 11.3, so as to avoid possible sanctions stemming from a delay in the completion of the project due to unforeseen and inevitable reasons. In this sense, on June 10, 2020, the Secretariat of Energy ordered CAMMESSA to temporarily suspend the calculation of the terms set forth for those projects that had not obtained the commercial authorization, among which the cogeneration station Terminal 6 - San Lorenzo is included, for a maximum postponement term of six months from March 12 to September 12, 2020. Therefore, the committed commercial authorization of the thermal plant was extended until March 5, 2021. On July 15, 2020, the Company communicated the Secretariat of Energy, with copy to CAMMESA, that the temporary suspension of the terms is not sufficient to comply with the new terms under the Wholesale Demand Agreement since the numerous measures adopted due to COVID-19 generated a strong slowdown in all the activities related to the work of the cogeneration unit Terminal 6 - San Lorenzo. Dated September 10, 2020, the Undersecretariat of Electrical Energy granted a new suspension of the terms for the commercial authorization of the projects between September 12, 2020 and November 25, 2020, being subject to certain requirements to be fulfilled before CAMMESA. Then, CAMMESA granted a new extension for 45 days. This way, as of the date of these financial statements, the calculation of periods has been suspended for a total of 294 days counted as from the originally committed date for the commercial authorization (September 1, 2020), this is to say until June 22, 2021. At the time, the Company requested CAMMESA and the Secretariat of Energy the extension of the commercial authorization of Terminal 6 -San Lorenzo project for additional 90 days. It is worth mentioning that on November 21, 2020, open cycle commercial operation began, while on August 15, 2021, the power station was authorized to operate commercially at combined cycle. On August 23, 2021, we received a note from CAMMESA whereby it informed that a penalty for USD 4,444,933 was established on the grounds of the delay on reaching the commercial authorization. The Company rejected such penalty and as of the date of the issuance of these financial statements, the Company is on procedures with the Secretariat of Energy and CAMMESA to revert such penalty since the delay was justified by the restrictions derived from the previously described COVID-19 pandemic.
31
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 effects of the COVID-19 crisis pose challenges to the beginning of works for closing of the combined cycle at the Brigadier López plant, delaying the start of construction of such project, not only because of the restrictions to the construction mentioned above, but also due to lower energy demand and difficulties to obtain the necessary financing for projects in the current market situation.
In addition, the COVID-19 crisis may reduce the possibility of new projects that would enable the use of the gas turbine included under "Gas turbines" item within property, plant and equipment.
Access to Capital Markets
Due to the outbreak of COVID-19, access to the capital and financial markets in Argentina and/or in foreign markets may also be substantially reduced. Although cash flow and liquidity of the Group is deemed sufficient to meet the working capital, debt service obligations and capital expenditure requirements, any further deterioration of the current economic situation may result in a deterioration of the Company´s finances, in a context of lack of access or substantial reduction of credit availability in the financial markets.
Natural gas distribution operating segment
The Covid-19 pandemic crisis may affect the natural gas distribution associate's income (ECOGAS Group). Although such economic activity was exempt from the Quarantine, the economic downturn as a consequence of this measure is expected to reduce the volumes distributed to the clients. Moreover, some measures adopted by the Argentine government to mitigate the effects of the Covid-19 outbreak in the economy are also expected to affect ECOGAS Group financial performance. For example, the government has ruled a 180-day period, starting on March 1, 2020, where the suspension of the natural gas service is not permitted, upon certain circumstances and limited to certain users; that period was subsequently extended until March 31, 2021.
The Group will continue taking all the available measures to mitigate the effects that the Covid-19 pandemic crisis has or may have on the operations, the projects undergoing and the Group´s financial position.
32
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.
PROPERTY, PLANT AND EQUIPMENT
AS OF SEPTEMBER 30, 2021 AND DECEMBER 31, 2020
EXHIBIT A
09-30-2021
Cost
At the beginning
Additions
Transfers
Disposals
At
the end
ARS 000
ARS 000
ARS 000
ARS 000
ARS 000
Lands and buildings
13,432,622
5,877
154
-
13,438,653
Electric power facilities
95,771,580
-
16,794,574
(222,596)
112,343,558
Wind turbines
31,774,956
-
10,160
-
31,785,116
Gas turbines
3,496,515
1,314
-
-
3,497,829
Construction in progress
28,357,127
6,175,016
(16,812,326)
-
17,719,817
Other
5,456,307
79,751
7,438
(105,586)
5,437,910
Total 09-30-2021
178,289,107
6,261,958
-
(328,182)
184,222,883
09-30-2021
12-31-2020
Depreciation and impairment
At the beginning
Charges
Disposals and impairment
At
the end
Net
book value
Net
book value
ARS 000
ARS 000
ARS 000
ARS 000
ARS 000
ARS 000
Lands and buildings
1,948,085
327,886
-
2,275,971
11,162,682
11,484,537
Electric power facilities
53,291,544
3,542,116
(171,783)
56,661,877
55,681,681
42,480,036
Wind turbines
2,078,387
1,199,313
-
3,277,700
28,507,416
29,696,569
Gas turbines
-
-
-
-
3,497,829
3,496,515
Impairment of gas turbines(1)
2,037,653
-
-
2,037,653
(2,037,653)
(2,037,653)
Impairment of electric power facilities, lands and buildings, construction in progress and others(1)
6,395,448
(238,083)
3,393,003
9,550,368
(9,550,368)
(6,395,448)
Construction in progress
-
-
-
-
17,719,817
28,357,127
Other
4,085,536
179,170
(105,586)
4,159,120
1,278,790
1,370,771
Total 09-30-2021
69,836,653
5,010,402
3,115,634
77,962,689
106,260,194
108,452,454
(1) See Note 2.4 and 2.3.8. to the issued financial statements as at December 31, 2020.
33
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.
EXHIBIT B
CENTRAL PUERTO S.A.
INTANGIBLE ASSETS
AS OF SEPTEMBER 30, 2021 AND DECEMBER 31, 2020
09-30-2021
12-31-2020
Cost
Amortization and impairment
At the beginning and at
the end
At the beginning
%
Charges
Impairment
At the end
Net book value
Net book value
ARS 000
ARS 000
ARS 000
ARS 000
ARS 000
ARS 000
ARS 000
Concession right
22,673,085
19,837,115
3,3
708,992
-
20,546,107
2,126,978
2,835,970
Transmission lines and electrical substations for wind farms
1,847,771
236,402
5,0
69,436
-
305,838
1,541,933
1,611,369
Turbogas and turbosteam supply agreements for thermal station Brigadier López ("BL contracts")
11,363,290
4,303,697
30,8(2)
2,145,887
-
6,449,584
4,913,706
7,059,593
BL contracts impairment(1)
-
2,270,352
-
(777,749)
867,331
2,359,934
(2,359,934)
(2,270,352)
Total 09-30-2021
35,884,146
26,647,566
2,146,566
867,331
29,661,463
6,222,683
9,236,580
(1)
See Note 2.4 and 2.3.8. to the issued financial statements as at December 31, 2020.
(2)
Related to turbogas supply agreement.
34
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.
EXHIBIT E
CENTRAL PUERTO S.A.
ALLOWANCES AND PROVISIONS
AS OF SEPTEMBER 30, 2021 AND DECEMBER 31, 2020
09-30-2021
12-31-2020
Item
At beginning
Increases
Decreases
Recoveries
At end
At end
ARS 000
ARS 000
ARS 000
ARS 000
ARS 000
ARS 000
ASSETS
Non-current
Inventories
228,142
-
-
-
228,142
228,142
Trade and other receivables
Allowance for doubtful accounts - Trade receivables
18,992
3,902
(4,969)(1)
(8,044)
9,881
18,992
Total 09-30-2021
247,134
3,902
(4,969)
(8,044)
238,023
Total 12-31-2020
253,938
74,643
(68,972)(1)
(12,475)
247,134
LIABILITIES
Current
Provisions
Provision for lawsuits and claims
47,737
9,100
(12,293)(1)
(15,898)
28,646
47,737
Total 09-30-2021
47,737
9,100
(12,293)
(15,898)
28,646
Total 12-31-2020
51,195
14,068
(14,924)(1)
(2,602)
47,737
(1) Income (loss) for exposure to change in purchasing power of currency for the period.
35
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.
EXHIBIT F
CENTRAL PUERTO S.A.
COST OF SALES
FOR THE NINE-MONTH AND TRHEE-MONTH PERIODS ENDED AS OF SEPTEMBER 30, 2021 AND 2020
9 months
3 months
01-01-2021 to
09-30-2021
01-01-2020 to
09-30-2020
07-01-2021 to
09-30-2021
07-01-2020 to
09-30-2020
ARS 000
ARS 000
ARS 000
ARS 000
Inventories at beginning of each period
2,002,800
1,494,930
1,055,300
1,706,924
Purchases and operating expenses for each period:
- Purchases
4,493,412
3,508,469
1,836,677
1,264,702
- Operating expenses (Exhibit H)
16,249,975
13,643,216
5,264,286
4,382,944
- Transfer to property, plant and equipment
(950,158)
-
-
-
19,793,229
17,151,685
7,100,963
5,647,646
Inventories at the end of each period
(1,221,225)
(1,839,893)
(1,221,225)
(1,839,893)
Total sales costs
20,574,804
16,806,722
6,935,038
5,514,677
36
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.
EXHIBIT G
CENTRAL PUERTO S.A.
FINANCIAL ASSETS AND LIABILITIES IN FOREIGN CURRENCY AS OF SEPTEMBER 30, 2021 AND DECEMBER 31, 2020
09-30-2021
12-31-2020
Account
Currency and amount
(in thousands)
Effective exchange rate(1)
Book
value
Currency and amount
(in thousands)
Book
value
ARS 000
ARS 000
NON-CURRENT ASSETS
Trade and other receivables
USD
306,115
98.74(2)
30,225,795
USD
404,860
40,016,435
30,225,795
40,016,435
CURRENT ASSETS
Cash and cash equivalents
USD
2,488
98.54
245,168
USD
29,834
346,768
EUR
2
113.88
228
EUR
1
282
Other financial assets
USD
88,307
98.54
8,701,772
USD
97,220
3,757,308
EUR
-
-
-
EUR
2,211
312,122
Trade and other receivables
USD
70,882
98.74(2)
6,998,889
USD
79,002
7,725,677
USD
41,624
98.54
4,101,629
USD
8,837
1,875,606
20,047,686
14,017,763
50,273,481
54,034,198
NON-CURRENT LIABILITIES
Other loans and borrowings
USD
376,420
98.74
37,167,711
USD
532,441
43,407,565
37,167,711
43,407,565
CURRENT LIABILITIES
Other loans and borrowings
USD
106,527
98.74
10,518,476
USD
110,804
24,849,995
Trade and other payables
USD
11,442
98.74
1,129,783
USD
22,537
2,211,880
EUR
265
114.36
30,306
EUR
291
17,157
11,678,565
27,079,032
48,846,276
70,486,597
USD: US dollar.
EUR: Euro.
(1)
At the exchange rate prevailing as of September 30, 2021 as per the Argentine National Bank.
(2)
At the exchange rate according to Communication "A" 3500 (wholesale) prevailing as of September 30, 2021 as per the Argentine Central Bank.
37
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.
EXHIBIT H
1 of 2
CENTRAL PUERTO S.A.
INFORMATION REQUIRED BY LAW 19,550, ART. 64, PARAGRAPH I, SUBSECTION b) FOR THE NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2021 AND 2020
9 months
01-01-2021 to 09-30-2021
01-01-2020 to 09-30-2020
Accounts
Operating
expenses
Administrative
and selling
expenses
Total
Operating
expenses
Administrative
and selling
expenses
Total
ARS 000
ARS 000
ARS 000
ARS 000
ARS 000
ARS 000
Compensation to employees
2,946,909
1,081,390
4,028,299
2,901,747
1,071,350
3,973,097
Other long-term employee benefits
152,772
32,115
184,887
115,479
20,320
135,799
Depreciation of property, plant and equipment
5,010,402
-
5,010,402
3,440,136
-
3,440,136
Amortization of intangible assets
2,146,566
-
2,146,566
2,397,503
-
2,397,503
Purchase of energy and power
137,017
-
137,017
210,522
-
210,522
Fees and compensation for services
1,100,274
1,095,021
2,195,295
996,389
816,387
1,812,776
Maintenance expenses
2,721,090
81,073
2,802,163
1,760,524
149,686
1,910,210
Consumption of materials and spare parts
819,767
-
819,767
517,068
-
517,068
Insurance
872,472
19,816
892,288
747,179
25,832
773,011
Levies and royalties
272,568
-
272,568
493,635
-
493,635
Taxes and assessments
59,727
246,808
306,535
50,271
354,031
404,302
Tax on bank account transactions
6,160
305,072
311,232
6,995
418,107
425,102
Others
4,251
66,481
70,732
5,768
40,627
46,395
Total
16,249,975
2,927,776
19,177,751
13,643,216
2,896,340
16,539,556
38
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.
EXHIBIT H
2 of 2
CENTRAL PUERTO S.A.
INFORMATION REQUIRED BY LAW 19,550, ART. 64, PARAGRAPH I, SUBSECTION b) FOR THE THREE-MONTH PERIODS ENDED SEPTEMBER 30, 2021 AND 2020
3 months
07-01-2021 to 09-30-2021
07-01-2020 to 09-30-2020
Accounts
Operating
expenses
Administrative
and selling
expenses
Total
Operating
expenses
Administrative
and selling
expenses
Total
ARS 000
ARS 000
ARS 000
ARS 000
ARS 000
ARS 000
Compensation to employees
927,628
385,139
1,312,767
864,375
376,133
1,240,508
Other long-term employee benefits
46,273
9,786
56,059
36,201
6,370
42,571
Depreciation of property, plant and equipment
1,694,869
-
1,694,869
1,027,191
-
1,027,191
Amortization of intangible assets
634,094
-
634,094
799,172
-
799,172
Purchase of energy and power
45,745
-
45,745
95,327
-
95,327
Fees and compensation for services
438,661
483,003
921,664
242,065
253,746
495,811
Maintenance expenses
750,657
37,526
788,183
681,691
3,614
685,305
Consumption of materials and spare parts
358,777
-
358,777
188,509
-
188,509
Insurance
273,383
6,751
280,134
239,279
9,104
248,383
Levies and royalties
72,370
-
72,370
188,467
-
188,467
Taxes and assessments
20,386
99,211
119,597
17,370
130,924
148,294
Tax on bank account transactions
2,050
108,979
111,029
2,391
132,973
135,364
Others
(607)
14,612
14,005
906
2,137
3,043
Total
5,264,286
1,145,007
6,409,293
4,382,944
915,001
5,297,945
39
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.
SEPARATE STATEMENT OF INCOME AND COMPREHENSIVE INCOME
for the nine-month period ended September 30, 2021
9 months
3 months
Unaudited
Unaudited
01-01-2021 to
09-30-2021
01-01-2020 to
09-30-2020
07-01-2021 to
09-30-2021
07-01-2020 to
09-30-2020
ARS 000
ARS 000
ARS 000
ARS 000
Revenues
30,293,470
31,723,572
10,228,171
11,067,870
Cost of sales
(17,784,988)
(14,577,290)
(5,997,253)
(4,737,509)
Gross income
12,508,482
17,146,282
4,230,918
6,330,361
Administrative and selling expenses
(2,538,482)
(2,548,072)
(988,336)
(812,507)
Other operating income
8,060,715
13,927,317
1,712,750
2,438,166
Other operating expenses
(2,074,426)
(533,872)
(1,456,041)
(43,935)
Impairment of property, plant and equipment and intangible assets
(4,260,334)
(2,054,624)
-
-
Operating income
11,695,955
25,937,031
3,499,291
7,912,085
Loss on net monetary position
(5,714,732)
(4,385,572)
(1,424,296)
(1,532,664)
Finance income
995,245
3,652,774
181,188
1,174,500
Finance expenses
(6,993,352)
(12,102,388)
(1,328,307)
(3,787,621)
Share of the profit of associates and subsidiaries
1,193,868
(45,814)
1,704,894
1,107,791
Income before income tax
1,176,984
13,056,031
2,632,770
4,874,091
Income tax for the period
(2,597,762)
(4,376,525)
28,076
(1,409,802)
Net (loss) income for the period
(1,420,778)
8,679,506
2,660,846
3,464,289
Total comprehensive (loss) income for the period
(1,420,778)
8,679,506
2,660,846
3,464,289
- Basic and diluted (loss) earnings per share (ARS)
(0.94)
5.77
1.77
2.30
40
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.
SEPARATE STATEMENT OF FINANCIAL POSITION
as at September 30, 2021
09-30-2021
12-31-2020
Notes
Unaudited
Audited
ARS 000
ARS 000
Assets
Non-current assets
Property, plant and equipment
68,402,590
69,043,859
Intangible assets
4,680,754
7,625,220
Investment in associates
5,659,014
6,387,732
Investment in subsidiaries
Exhibit C
24,877,559
13,265,728
Trade and other receivables
30,618,698
40,265,700
Other non-financial assets
197,747
270,827
Other financial assets
1,420,028
619,281
Inventories
546,375
901,341
136,402,765
138,379,688
Current assets
Inventories
647,838
1,076,725
Other non-financial assets
462,201
316,328
Trade and other receivables
17,213,685
18,582,270
Other financial assets
3,867,769
16,284,066
Cash and cash equivalents
20,513
26,827
22,212,006
36,286,216
Property, plant and equipment available for sale
-
3,231,455
Total assets
158,614,771
177,897,359
Equity and liabilities
Capital stock
1,514,022
1,514,022
Adjustment to capital stock
35,647,985
35,647,985
Legal reserve
5,728,456
5,256,504
Voluntary reserve
75,364,040
66,396,960
Other equity accounts
(2,692,796)
(2,692,796)
Retained earnings
(1,413,240)
9,446,570
Total equity
114,148,467
115,569,245
Non-current liabilities
Other non-financial liabilities
5,453,188
7,196,183
Other loans and borrowings
12,085,589
12,012,288
Compensation and employee benefits liabilities
447,528
430,886
Deferred income tax liabilities
8,877,490
9,631,761
26,863,795
29,271,118
Current liabilities
Trade and other payables
3,893,103
3,163,549
Other non-financial liabilities
3,501,893
2,796,081
Other loans and borrowings
8,368,894
22,516,965
Compensation and employee benefits liabilities
1,077,511
1,231,968
Income tax payable
732,463
3,300,698
Provisions
28,645
47,735
17,602,509
33,056,996
Total liabilities
44,466,304
62,328,114
Total equity and liabilities
158,614,771
177,897,359
41
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.
SEPARATE STATEMENT OF CASH FLOWS
for the nine-month period ended September 30, 2021
09-30-2021
09-30-2020
Unaudited
ARS 000
ARS 000
Operating activities
Income for the period before income tax
1,176,984
13,056,031
Adjustments to reconcile income for the period before income tax to net cash flows:
Depreciation of property, plant and equipment
3,405,118
2,270,031
Amortization of intangible assets
2,077,130
2,328,957
Impairment of property, plant and equipment and intangible assets
4,260,334
2,054,624
Income from sale of property, plant and equipment
(96,324)
-
Interest earned from customers
(2,648,274)
(3,322,301)
Trade and tax interests lost
564,997
509,425
Finance income
(995,245)
(3,652,774)
Finance expenses
6,993,352
12,102,388
Share of the profit of associates and subsidiaries
(1,193,868)
45,814
Movements in provisions and long-term employee benefit plan expense
172,934
139,031
Foreign exchange difference for trade receivables
(5,411,147)
(10,563,081)
Loss on net monetary position
6,620,225
(5,892,340)
Working capital adjustments:
(Increase) Decrease in trade and other receivables
(102,124)
17,675,792
(Increase) Decrease in other non-financial assets and inventories
(723,399)
457,834
Decrease in trade and other payables, other non-financial liabilities and liabilities from employee benefits
(3,383,485)
(9,830,342)
10,717,208
17,379,089
Trade and tax interests paid
(564,997)
-
Interest received
2,599,253
3,078,280
Income tax paid
(3,944,611)
(4,732,510)
Net cash flows provided by operating activities
8,806,853
15,724,859
Investing activities
Purchase of property, plant and equipment
(4,597,771)
(6,199,589)
Sale of property, plant and equipment
3,307,763
-
Loans collected to subsidiaries, net
756,903
3,816,345
Interests collected from granted loans
68,468
63,340
Dividends received
132,498
380,504
Sale (Acquisition) of other financial assets, net
1,363,670
(7,975,289)
Capital contributions to subsidiaries
(2,164,641)
(2,796,179)
Net cash flows used in investing activities
(1,133,110)
(12,710,868)
Financing activities
Bank and investment accounts overdrafts paid, net
(560,608)
(2,568,423)
Long-term loans paid
(5,517,854)
(417,597)
Interest and other financial costs paid
(1,605,407)
(1,921,932)
Net cash flows used in financing activities
(7,683,869)
(4,907,952)
Decrease in cash and cash equivalents
(10,126)
(1,893,961)
Exchange difference and other financial results
32,449
155,382
Monetary results effect on cash and cash equivalents
(28,637)
(96,415)
Cash and cash equivalents as of January 1
26,827
1,920,338
Cash and cash equivalents as of September 30
20,513
85,344
42
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.
1.
Basis of presentation of the separate financial statements
1.1.
Summary of the applied accounting policies
The Company presents its separate financial statements according to CNV Regulations, which approved General Regulation No. 622. This regulation establishes that entities issuing shares and/or corporate bonds, with certain exceptions, must prepare their financial statements in accordance with Technical Resolution No. 26 (as amended) of FACPCE, which states the adoption of IFRS as issued by IASB, while other entities will have the option to use IFRS or IFRS for SME in lieu of NCPA (Argentine Professional Accounting Standards).
1.2.
Basis for presentation
These separate condensed financial statements for the nine-month period ended September 30, 2021 were prepared by applying the financial information framework established by CNV as mentioned in Note 1.1.
When preparing these separate interim condensed financial statements, the Company applied the presentation bases, accounting policies, and relevant accounting judgments, estimate and assumptions described in the attached condensed consolidated financial statements for the nine-month period ended September 30, 2021.
These separate interim condensed financial statements are presented in Argentine pesos, and all values have rounded to the nearest thousand (ARS 000), unless otherwise stated.
43
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.
EXHIBIT C
CENTRAL PUERTO S.A.
INVESTMENT IN SUBSIDIARIES
AS OF SEPTEMBER 30, 2021 AND DECEMBER 31, 2020
09-30-2021
12-31-2020
Name and characteristics
of securities and issuers
Class
Face value
Number
Cost
value
Listed
price
Value obtained by the equity method
Share of profit of subsidiaries
Book
value
Book
value
INVESTMENT IN SUBSIDIARIES
Central Vuelta de Obligado S.A.
1 vote
1
280,950
281
Unlisted
168,249
79,918
168,249
225,407
CP Renovables S.A.
1 vote
1
9,636,166,518
9,636,167
Unlisted
11,442,405
2,096,751
11,442,405
8,391,806
Proener S.A.U.
1 vote
1
7,462,904,131
7,462,904
Unlisted
6,808,981
(2,218,879)
6,808,981
27,282
Vientos La Genoveva S.A.U.
1 vote
1
1,615,451,861
1,615,452
Unlisted
4,005,897
1,337,348
4,005,897
2,668,550
Vientos La Genoveva II S.A.U.
1 vote
1
498,293,542
498,294
Unlisted
2,452,027
499,344
2,452,027
1,952,683
1,794,482
24,877,559
13,265,728
Latest available financial information
Name and characteristics
of securities and issuers
Date
Capital stock
(Loss)
Income
Equity
Direct and indirect equity interest %
INVESTMENT IN SUBSIDIARIES
Central Vuelta de Obligado S.A.
09/30/2021
500
141,295
299,429
56.19%
CP Renovables S.A.
09/30/2021
10,101,498
2,105,781
12,101,893
100.00%
Proener S.A.U.
09/30/2021
7,462,904
(2,218,879)
6,819,143
100.00%
Vientos La Genoveva S.A.U.
09/30/2021
1,615,452
1,356,494
3,528,922
100.00%
Vientos La Genoveva II S.A.U.
09/30/2021
498,294
508,226
2,126,055
100.00%

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Central Puerto SA published this content on 17 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 November 2021 21:20:21 UTC.