Central Puerto: Self-Procurement and Strategic Contracting Drive a Step-Change in EBITDA

EBITDA more than doubles YoY as fuel self-procurement and new capacity reshape Argentina's power market exposure.

CEPU.BA · Earnings Call · 2026-08-12

Central Puerto delivered a standout quarter, with adjusted EBITDA surging 136% year-over-year to $145 million, on revenues that more than doubled to $453 million. The growth was driven by a combination of self-procured fuel margins, seasonal winter prices, and new contracted thermal energy. The CEO, Fernando Bonnet, noted that self-procurement momentum continued into July, though it may taper: “…we saw in during July similar levels that we saw in June…” — Fernando Bonnet, Executive / Management · 2026-08-12

The company has been aggressive in self-procuring natural gas and liquid fuels, a strategy that not only boosts reported revenues but also captures margins that would otherwise flow to CAMMESA. This is a key differentiator in Argentina's liberalizing power market. The CEO highlighted the importance of balancing spot price exposure during peak winter hours with locked-in contract prices—a strategic mix that drives profitability.

Battery Storage and Vaca Muerta: The Next Growth Vectors

Beyond the immediate quarter, Central Puerto is advancing its growth pipeline. The battery storage projects at Nuevo Puerto and Central Costanera are on track for commercial operation in Q4 2026, with expected annual EBITDA contribution of $25–27 million. “And the last 1 was the EBITDA estimate of the BESS projects. We are seeing that around in the full year operation in between $25 million and $27 million per year.” — Fernando Bonnet, Executive / Management · 2026-08-12 The company also closed the acquisition of Vaca Muerta oil and gas blocks in April, a diversification into upstream that could unlock new revenue streams.

Distribution Contracting: The Path to 80%

A recurring theme is the effort to expand PPAs with distribution companies, beyond the 20% already contracted with industrial users. This has been a focus in prior quarters, and progress is being made. As Bonnet stated:

We want to have the better mix between having some megawatts exposed to the spot market and to catch up on those prices going up during winter…
Fernando Bonnet, Executive / Management · 2026-08-12

This echoes the prior quarter's discussion where he noted: “we are starting to moving that 80% that we still sell to the spot market negotiating with distribution companies…” — Fernando Bonnet, Management Team · 2026-05-13 The company aims to achieve a stable contracted base while retaining upside from seasonal spot prices.

Outlook: Capacity Auctions and a Balanced Portfolio

Looking ahead, Central Puerto expects new capacity auctions to provide further growth opportunities. The government is working on a regular scheme for new capacity, and the company has fully developed projects that could be presented. The CEO noted: “I think they are thinking on a regular scheme perhaps quarterly scheme or perhaps biannual scheme.” — Fernando Bonnet, Executive / Management · 2026-08-12 They are also exploring transmission lines for mining companies and potential data center demand. This diversified approach, combined with a strong balance sheet (net leverage of 1.2x), positions the company well for long-term value creation. Earlier, management had quantified the potential uplift from market liberalization: “we can expect around between 20% and 25% of increase in our EBITDA” — Fernando Bonnet, Executive (likely CFO or similar) · 2025-11-12—and the current quarter suggests that is being realized.