Toggle SGML Header (+)


Section 1: 6-K (FORM 6-K)

Blueprint
 

 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 6-K
 
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
under the Securities Exchange Act of 1934
For the month of November, 2018
 
Commission File Number: 001-38376
 

 
Central Puerto S.A.
(Exact name of registrant as specified in its charter)
 
 
Port Central S.A.
(Translation of registrant’s name into English)
 

Avenida Thomas Edison 2701
C1104BAB Buenos Aires
Republic of Argentina
+54 (11) 4317-5000
 
(Address of principal executive offices)
 

 
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. 
 
Form 20-F  ☒ Form 40-F ☐
 
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
 
Yes ☐ No ☒
 
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
 
Yes ☐ No ☒
 
 CENTRAL PUERTO S.A.
 

 
 
 
TABLE OF CONTENTS
 
Item
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
 
 
 
 
 
 
 
 
 
Central Puerto S.A.
 
 
 
 
Date: November 20, 2018
 
 
 
By:
 
/s/ LEONARDO MARINARO
 
 
 
 
Name:
 
Leonardo Marinaro
 
 
 
 
Title:
 
Attorney-in-Fact
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Back To Top)

Section 2: EX-99.1 (ENGLISH TRANSLATION OF A NOTICE SENT TO THE BUENOS AIRES STOCK EXCHANGE)

Blueprint
  Exhibit 99.1
 
“The terms herein match the ones included in the fax.”
 
 
BUENOS AIRES, November 12,2018
 
Note: CPSA-GG-N-0468/18-AL
 
Bolsa de Comercio de Buenos Aires
 
 
Subject: information set forth by Section 63 of the Buenos Aires Stock Exchange Regulations.
 
Ladies and gentlemen,
 
We contact you in compliance with the referred section in order to inform that the financial statements and other required documents for the period ended September 30, 2018 were approved at the Board of Directors Meeting of Central Puerto S.A. on November 12, 2018. In addition, the auditor’s report and the Audit Committee report were noted at such meeting.
In that regard, we inform as follows:
 
1.
Results for the nine-month period ended September 30, 2018:
 
 
 
Ps. 000
 
Income (loss) for the period
 
 
 
Attributable to shareholders of the Company
  17,360,268 
Attributable to non-controlling interests
  (511,072)
Total income (loss) for the period - Income
  16,849,196 
 
2.
Other comprehensive results for the nine-month period ended September 30, 2018:
 
 
 
Ps. 000
 
Other comprehensive income for the period
 
 
 
Attributable to shareholders of the Company
  (43,284)
Attributable to non-controlling interests
  - 
Total of other comprehensive income for the period – Loss
  (43,284)
 
Avda. Tomás A. Edison 2701 – C1104BAB – City of Buenos Aires – Argentina
Telephone (54 11) 4317 5000 – Fax (54 11) 4317 5099
 
1
 
 
3.
Total comprehensive results for the nine-month period ended September 30, 2018:
 
 
 
Ps. 000
 
Net comprehensive income for the period
 
 
 
Attributable to shareholders of the Company
  17,316,984 
Attributable to non-controlling interests
  (511,072)
Total net comprehensive income for the period - Income
  16,805,912 
 
4.
Shareholder’s equity as at September 30, 2018, detailed by items and amounts:
 
 
 
ARS 000
 
Share capital – Nominal Value
  1,514,022 
Capital adjustment
  664,988 
Premium
  376,571 
Legal reserve
  435,802 
Special reserve IGJ Resolution 7/05
  55,830 
Special reserve General Resolution CNV 609
  177,181 
Voluntary reserve
  2,744,471 
Retained results
  6,196 
Results for the period
  17,360,268 
Non-controlling interest
  36,417 
Total
  23,371,746 
 
    
Attributable to the company’s shareholders
  23,335,329 
Attributable to non-controlling interest
  36,417 
 
 
 
2
 
 
 
5.
Majority Shareholders
 
As a result of the merger between Central Puerto S.A., the acquiring company, and Operating S.A. (“OPER”), Hidroneuquén S.A. (“HNQ”), and Sociedad Argentina de Energía S.A. (“SADESA”), the acquired companies, and as a result of the relevant shares exchange undertaken by the acquired companies, no shareholder of Central Puerto S.A. is a controlling shareholder.
 
Finally, it must be noted that the share capital is under public offer and its shares are traded in the Buenos Aires Stock Exchange (“BCBA”) and, since February 2, 2018, in the New York Stock Exchange (“NYSE”). For that reason, there may be changes in shareholding of which the Company is not aware.
 
Yours faithfully,
 
 
 
Leonardo Marinaro
Head of Market Relations
CENTRAL PUERTO S.A.
 
 
 
 
 
 
 
3
(Back To Top)

Section 3: EX-99.2 (ENGLISH TRANSLATION OF AN EXCERPT OF THE MINUTES OF THE MEETING OF THE BOARD OF DIRECTORS OF CENTRAL PUERTO S.A.)

Blueprint
  Exhibit 99.2
 
Relevant part of the Board of Directors Meeting Minutes of
 
 Central Puerto S.A.
 
November 12, 2018
 
Minutes no. 335: In the City of Buenos Aires, on this November 12, 2018, the Board of Directors of CENTRAL PUERTO S.A. (the “Company” or “CPSA”, indistinctly) meets at 9:30 a.m. The following directors were present: Osvaldo RECA, Oscar GOSIO, Miguel DODERO, Juan José SALAS, Diego PETRACCHI, Tomás WHITE, Tomas PERES, Jorge RAUBER, Jorge Eduardo VILLEGAS, Cristián LOPEZ SAUBIDET and Liliana MURISI, who is present via conference call. The following members of the Audit Committee also attend the meeting: Eduardo EROSA, Cesar HALLADJIAN and Juan NICHOLSON. The quorum required is met and so the meeting starts (…) the second item on the Agenda is then considered: 2) APPROVAL OF THE CONSOLIDATED INCOME STATEMENT, CONSOLIDATED COMPREHENSIVE INCOME STATEMENT, CONSOLIDATED STATEMENT OF FINANCIAL POSITION, CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDER’S EQUITY, CONSOLIDATED CASH FLOW STATEMENT, SUPPLEMENTARY NOTES, SEPARATE INCOME STATEMENT, SEPARATE COMPREHENSIVE INCOME STATEMENT, SEPARATE STATEMENT OF FINANCIAL POSITION, SEPARATE CASH FLOW STATEMENT, INFORMATION REVIEW AND ADDITIONAL INFORMATION TO THE NOTES TO FINANCIAL STATEMENTS – SECTION 12, CHAPTER III, TITLE IV, ARGENTINE SECURITIES COMMISSION REGULATIONS (N.T. 2013) FOR THE PERIOD ENDED SEPTEMBER 30, 2018. Mr. Osvaldo RECA requests Mr. Juan Avigliano to present the topic. Mr. Juan Avigliano takes the floor and informs that the Board of Directors needs to consider and approve the Consolidated Income Statement, Consolidated Comprehensive Income Statement, Consolidated Statement of Financial Position, Consolidated Statement of Changes in Shareholder’s Equity, Consolidated Cash Flow Statement, Supplementary Notes, Separate Income Statement, Separate Comprehensive Income Statement, Separate Statement of Financial Position, Separate Cash Flow Statement, Informative Summary and Additional Information to the Notes to Financial Statements – Section 12, Chapter III, Title IV, Argentine Securities Commission Regulations (N.T. 2013) for the period ended September 30, 2018., documentation that was provided to the Directors well in advance. After a brief debate and knowing the Audit Committee report and the Independent Auditors’ reports, the Board of Directors unanimously approve the Consolidated Income Statement, Consolidated Comprehensive Income Statement, Consolidated Statement of Financial Position, Consolidated Statement in Shareholder’s Equity, Consolidated Cash Flow Statement, Supplementary Notes, Separate Income Statement, Separate Comprehensive Income Statement, Separate Statement of Financial Position, Separate Cash Flow Statement, Informative Summary and Additional Information to the Notes to Financial Statements – Section 12, Chapter III, Title IV, Argentine Securities Commission Regulations (N.T. 2013) for the period ended September 30, 2018. Mrs. Eduardo Erosa, Cesar Halladjian and Juan Nicholson evidence Mrs. MURISI’s affirmative vote, which was casted via conference call. Mr. Osvaldo RECA continues taking the floor and informs of the status of compliance with General Resolution 611/12, Argentine Securities Commission. In that regard, Mr. Osvaldo RECA states that the Company knows that the Professional Accounting Regulations (NCP, for its acronym in Spanish) and the International Financial Reporting Standards (IFRS) (the “Standards”) were reconciled. The Regulations apply to the investments the Company keeps with corporations Termoeléctrica Manuel Belgrano S.A., Termoeléctrica José de San Mart’n S.A., Central Vuelta de Obligado S.A., Transportadora de Gas del Mercosur S.A, CP Renovables S.A., Vientos La Genoveva S.A.U., Vientos La Genoveva II S.A.U., Central Aimé Painé S.A., Parques Eólicos Australes S.A, and Proener S.A.U.. All these corporations are periodically overseen by the Company, thus concluding that any significant item that should be considered in a different manner under the Regulations has been considered during the Regulations reconciliation. Therefore, the Directors unanimously approve the Regulations reconciliation. Mrs. Eduardo Erosa, Cesar Halladjian and Juan Nicholson evidence Mrs. MURISI’s affirmative vote, which was casted via conference call. (…) There being no further business to be transacted, the meeting is adjourned at 10:30 a.m.
 
Osvaldo Reca
Chairman
Central Puerto S.A.
 
(Back To Top)

Section 4: EX-99.3 (ENGLISH TRANSLATION OF AN EXCERPT OF THE MINUTES OF A MEETING OF THE SUPERVISORY COMMITTEE OF CENTRAL PUERTO S.A.)

Blueprint
  Exhibit 99.3
 
Minutes no. 370
 
In the City of Buenos Aires, on this November 12, 2018, at 11:30 a.m., Messrs. César Halladjian, Eduardo Erosa, and Juan Nicholson, members of the Supervisory Committee of Central Puerto S.A. (hereinafter, the “Company”), meet to consider the sole item of the meeting order of business: CONSIDERATION OF THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED SEPTEMBER 30, 2018. ISSUE OF THE SUPERVISORY COMMITTEE REPORT. Mr. Hallajdian takes the floor and states that the Supervisory Committee must make a statement on the Consolidated Statement of Financial Position, the Consolidated Income Statement, Consolidated Comprehensive Income Statement, Consolidated Statement of Changes in Shareholder’s Equity, Consolidated Cash flow Statement, Supplementary Notes, Separate Income Statement, Separate Comprehensive Income Statement, Separate Statement of Financial Position, Separate Cash Flow Statement, the information review and the additional information to the financial statements notes -Section 12, Chapter III, Title IV of the Argentine Securities Commission (Comisión Nacional de Valores) Regulations (N.T. 2013) 68, Regulation of the Buenos Aires Stock Exchange- for the period ended September 30, 2018. After a brief debate and taking into consideration any clarification made and the information provided by the Company’s Board of Directors, the members of the Supervisory Committee unanimously RESOLVE to approve the Supervisory Committee Report, transcribed hereunder, and to have Mr. Cesar Halladjian sign it:
 
SUPERVISORY COMMITTEE REPORT
 
To the Shareholders of
CENTRAL PUERTO S.A.
 
Introduction
 
1.      
In accordance with Section 294, Subsection 5, Argentine Entities Law No. 19.550, as amended, (the “Argentine Entities Law”) and the Buenos Aires Stock Exchange Regulation on “Securities Authorization, Suspension, Withdrawal, and Cancellation” (the “Price Regulation of the BCBA”), we have reviewed the attached separate and consolidated financial statements of CENTRAL PUERTO S.A. and of its controlled companies’, which include the following: (a) separate and consolidated statements of financial position as at September 30, 2018, (b) separate and consolidated income statement and comprehensive income statement for the nine-month and three-month periods ended September 30, 2018, and the consolidated statement of changes in shareholder’s equity and separate and consolidated cash flow statement for the nine-month period ended on the date mentioned above, and (c) a summary of any significant accounting policy and other relevant information. As stated in note 2.2 to the attached consolidated financial statements and in note 1.1 to attached the separate financial statements, the Company prepares and presents its financial statements pursuant to the accounting information framework established by the Argentine Securities Commission (CNV), which is based on the International Financial Reporting Standards (“IFRS”), and particularly regarding the condensed interim financial statements, on the International Accounting Standards (“IAS”) 34 “Interim Financial Reporting”, as these standards were issued by the International Accounting Standards Board (“IASB”) and adopted by the Argentine Federation of Professional Councils in Economic Sciences (“FACPCE”), with the sole exception that IAS 29 “Financial Reporting in Hyperinflationary Economies”, which is temporarily excluded by CNV from its financial information framework. In addition, we reviewed the “Additional information to the notes to financial statements –Section 12, Title III, Chapter IV, Argentine Securities Commission (CNV) Regulation (N.T. 2013) as at September 30, 2013”. The filing of this information is not compulsory under the International Financial Reporting Standards accepted by the Argentine Federation of Professional Councils in Economic Sciences (“FACPCE”) as professional accounting rules included by the Argentine Securities Commission, as approved by the International Accounting Standards Board (“IASB”). The aforementioned documents are exclusive responsibility of the Company’s Board of Directors.
 
 
-1-
 
 
Scope of the work
 
2.      
Our work consisted in verifying that the relevant information in those statements was similar to that contained in the minutes reflecting the decisions made in the company, and that those decisions be in accordance with the law and the bylaws as regards its form and content. To do our work, we took into consideration the independent auditors’ opinion as well as the opinion of Mr. Germán E. Cantalupi, external auditor, member of the Company Pistrelli, Henry Martin y Asociados S.R.L. These opinions were given on November 12, 2018 in accordance with the International Regulation of Revision Request 2410 “Financial information revision for interim periods made by the company’s independent auditor”, issued by the International Auditing and Assurance Standards Board (“IAASB”). We have not performed any management control and, therefore, we have not assessed any corporate criteria or decision about management, financing, marketing, and production, since these issues are exclusive responsibility of the Board of Directors. In consequence, our responsibility is limited to making a statement about the aforementioned documents, excluding facts, acts, omissions, or circumstances unknown to us or that cannot be known by reviewing the information received by this Supervisory Committee in exercising its powers. We believe our work and the external auditor’s report to be a reasonable basis for us to prepare our report.
 
Conclusion
 
3.      
Based on the revision we made and on certified public accountant Germán E. Cantalupi’s reports from November 12, 2018, made in his capacity as member of the Company Pistrelli, Henry Martin y Asociados S.R.L. mentioned in paragraph 1, there is nothing that, to our mind, shows that the condensed interim financial statements mentioned in paragraph 1 were not prepared in all their significant aspects in accordance with the relevant provisions of the Argentine Entities Law and of the Argentine Securities Commission and in compliance with the financial information framework mentioned in paragraph 1.
 
Emphasis on some issues revealed in financial statements
 
4.      
We draw attention to the information contained in Note 2.2.2 to the Company’s consolidated financial statements “Differences between the financial information framework established the CNV and IFRs”, in which the Company details the effects the use of IAS 29 may have. Moreover, it states that even if it has not quantified the effects such standard would have on financial statements, it estimates that they would be significant and warns to take them into account when interpreting the information provided by the Company in the financial statements regarding its financial situation, its comprehensive result and cash flows. This fact does not change the conclusion expressed in paragraph 3.
 
 
-2-
 
 
Report on other legal and regulatory requirements
 
5.      
In compliance with the regulations in force, we inform as follows:
 
a)      
The separate and consolidated financial statements mentioned in paragraph 1 arise from the accounting books kept in form as required by the regulations in force.
 
b)      
The separate and consolidated financial statements mentioned in paragraph 1 are recorded in the Inventory and Balance Sheet Book and comply, as regards to the scope of our work, with the provisions in the Argentine Entities Law and with the relevant provisions from the Argentine Securities Commission.
 
c)      
We have read the “Information summary for the interim periods ended September 30, 2018, 2017, 2016, 2015, and 2014” and the “Additional information to the notes to consolidated financial statements as required under Section 12, Title III, Chapter IV, Regulations (N.T. 2013) of the Argentine Securities Commission. We do not have any comments to make on this information as regards the scope of our work.
 
d)      
It is expressly stated that all necessary provisions under Section 294, Argentine Entities Law have been complied with, in order to verify the extent to which the company’s bodies abode by the Argentine Entities Law and the Company’s Bylaws. We have no comments to make.
 
City of Buenos Aires,
By Supervisory Committee
November 12, 2018
CÉSAR HALLADJIAN
 
Statutory Auditor
 
Mr. César Halladjian is unanimously appointed to sign the financial statements and the Supervisory Committee’s report. That having been done and there being no further business to be transacted, the meeting is adjourned at 12:00 p.m.
 
Eduardo Erosa
César Halladjian
Juan Nicholson
 
 
-3-
(Back To Top)

Section 5: EX-99.4 (ENGLISH TRANSLATION OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX-MONTH PERIOD ENDED SEPTEMBER 30, 2018)

Blueprint
  Exhibit 99.4
 
 
 
Central Puerto S.A.
 
Consolidated financial statements for the nine-month periods ended September 30, 2018 and 2017, 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° 27 BEGINNING JANUARY 1, 2018
 
FINANCIAL STATEMENTS
 
FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2018
 
 
 
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 and registered
(Note 14)
 
 
 
 
 
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
for the nine-month period ended September 30, 2018
 
 
 
 
 
 
9 months
 
 
3 months
 
 
 
 
 
 
Unaudited
 
 
Unaudited
 
 
 
Notes
 
 
01-01-2018 to 09-30-2018
 
 
01-01-2017 to 09-30-2017
 
 
07-01-2018 to 09-30-2018
 
 
07-01-2017 to 09-30-2017
 
 
 
 
 
 
ARS 000
 
 
ARS 000
 
 
ARS 000
 
 
ARS 000
 
CONTINUING OPERATIONS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
    4 
  7,419,288 
  4,021,380 
  3,513,311 
  1,539,456 
Cost of sales
 
Exhibit F
 
  (2,876,055)
  (1,954,777)
  (1,191,262)
  (652,165)
Gross income
       
  4,543,233 
  2,066,603 
  2,322,049 
  887,291 
 
       
    
    
    
    
Administrative and selling expenses
 
Exhibit H
 
  (725,602)
  (446,999)
  (268,188)
  (149,764)
Other operating income
    5.1 
  12,152,357 
  318,218 
  6,661,153 
  177,221 
Other operating expenses
    5.2 
  (74,718)
  (35,575)
  (30,707)
  (16,630)
CVO receivables update and interests
    7.1 
  7,958,658 
  - 
  - 
  - 
Operating income
       
  23,853,928 
  1,902,247 
  8,684,307 
  898,118 
 
       
    
    
    
    
Finance income
    5.3 
  1,485,523 
  835,800 
  459,458 
  123,803 
Finance expenses
    5.4 
  (3,394,618)
  (485,673)
  (1,992,971)
  (161,983)
Share of the profit of associates
       
  830,691 
  222,915 
  423,333 
  130,722 
Income before income tax from continuing operations
       
  22,775,524 
  2,475,289 
  7,574,127 
  990,660 
 
       
    
    
    
    
Income tax for the period
    6 
  (6,456,817)
  (822,262)
  (2,169,645)
  (352,034)
Net income for the period from continuing operations
       
  16,318,707 
  1,653,027 
  5,404,482 
  638,626 
 
       
    
    
    
    
 
       
    
    
    
    
DISCONTINUED OPERATIONS
       
    
    
    
    
 
       
    
    
    
    
Income after tax for the period from discontinued operations
    16 
  530,489 
  426,062 
  - 
  166,986 
Net income for the period
       
  16,849,196 
  2,079,089 
  5,404,482 
  805,612 
 
       
    
    
    
    
Attributable to:
       
    
    
    
    
 Equity holders of the parent
       
  17,360,268 
  2,085,652 
  5,709,878 
  806,252 
 Non-controlling interests
       
  (511,072)
  (6,563)
  (305,396)
  (640)
 
       
  16,849,196 
  2,079,089 
  5,404,482 
  805,612 
 
       
    
    
    
    
Ganancia por acción:
       
    
    
    
    
 Basic and diluted earnings per share (ARS)
       
  11.53 
  1.37 
  3.79 
  0.53 
 
       
    
    
    
    
Ganancia por acción de operaciones continuadas:
       
    
    
    
    
 Basic and diluted earnings per share from continuing operations (ARS)
       
  11.18 
  1.09 
  3.79 
  0.42 
 
 
-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 COMPREHENSIVE INCOME
for the nine-month period ended September 30, 2018
 
 
 
 
 
 
9 months
 
 
3 months
 
 
 
 
 
 
Unaudited
 
 
Unaudited
 
 
 
Notes
 
 
01-01-2018 to 09-30-2018
 
 
01-01-2017 to 09-30-2017
 
 
07-01-2018 to 09-30-2018
 
 
07-01-2017 to 09-30-2017
 
 
 
 
 
 
ARS 000
 
 
ARS 000
 
 
ARS 000
 
 
ARS 000
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income for the period
 
 
 
  16,849,196 
  2,079,089 
  5,404,482 
  805,612 
 
    
    
    
    
Other comprehensive income for the period
 
 
 
    
    
    
    
 
    
    
    
    
Other comprehensive income to be reclassified to income in subsequent periods
 
 
 
    
    
    
    
 
    
    
    
    
Loss on financial assets of fair value through other comprehensive income
    5.5 
  (72,133)
  (452,679)
  - 
  (25,906)
Income tax effect
    6 
  28,849 
  158,438 
  - 
  9,067 
 
       
    
    
    
    
Other comprehensive income to be reclassified to income in subsequent periods
       
  (43,284)
  (294,241)
  - 
  (16,839)
 
       
    
    
    
    
Other comprehensive income for the period
       
  (43,284)
  (294,241)
  - 
  (16,839)
 
       
    
    
    
    
Total comprehensive income for the period
       
  16,805,912 
  1,784,848 
  5,404,482 
  788,773 
 
       
    
    
    
    
Attributable to:
       
    
    
    
    
 Equity holders of the parent
       
  17,316,984 
  1,791,411 
  5,709,878 
  789,413 
 Non-controlling interests
       
  (511,072)
  (6,563)
  (305,396)
  (640)
 
       
  16,805,912 
  1,784,848 
  5,404,482 
  788,773 
 
 
-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 FINANCIAL POSITION
as at September 30, 2018
 
 
 
 
 
 
09-30-2018
 
 
12-31-2017
 
 
 
Notes
 
 
Unaudited
 
 
Audited
 
 
 
 
 
 
ARS 000
 
 
ARS 000
 
Assets
 
 
 
 
 
 
 
 
 
Non-current assets
 
 
 
 
 
 
 
 
 
Property, plant and equipment
 
Exhibit A
 
  11,699,684 
  7,431,728 
Intangible assets
 
 
 
  579,395 
  187,833 
Investment in associates
 
 
 
  1,147,042 
  985,646 
Trade and other receivables
  7.1 
  18,690,258 
  2,602,213 
Other non-financial assets
  8.1 
  242,523 
  12,721 
Inventories
    
  48,203 
  48,203 
Other financial assets
  7.5 
  44,745 
  - 
 
    
  32,451,850 
  11,268,344 
Current assets
    
    
    
Inventories
    
  166,942 
  110,290 
Other non-financial assets
  8.1 
  705,062 
  470,895 
Trade and other receivables
  7.1 
  9,192,004 
  3,887,065 
Other financial assets
  7.5 
  917,457 
  1,110,728 
Cash and cash equivalents
    
  826,231 
  88,633 
 
    
  11,807,696 
  5,667,611 
Assets held for sale
  16 
  - 
  143,014 
 
    
  11,807,696 
  5,810,625 
Total assets
    
  44,259,546 
  17,078,969 
 
    
    
    
Equity and liabilities
    
    
    
Equity
    
    
    
Capital stock
    
  1,514,022 
  1,514,022 
Adjustment to capital stock
    
  664,988 
  664,988 
Merger premium
    
  376,571 
  376,571 
Special reserve IGJ Resolution 7/05
    
  55,830 
  55,830 
Legal reserve
    
  435,802 
  286,178 
Special reserve CNV General Resolution 609
    
  177,181 
  177,181 
Voluntary reserve
    
  2,744,471 
  450,865 
Retained earnings
    
  17,366,464 
  3,503,046 
Accumulated other comprehensive income
    
  - 
  43,284 
Equity attributable to holders of the parent
    
  23,335,329 
  7,071,965 
Non-controlling interests
    
  36,417 
  289,035 
Total equity
    
  23,371,746 
  7,361,000 
 
    
    
    
Non-current liabilities
    
    
    
Other non-financial liabilities
  8.2 
  2,208,002 
  468,695 
Other loans and borrowings
  7.3 
  5,795,825 
  1,478,729 
Borrowings from CAMMESA
  7.4 
  933,527 
  1,055,558 
Compensation and employee benefits liabilities
  8.3 
  117,015 
  113,097 
Deferred income tax liabilities
  6 
  1,719,879 
  703,744 
 
    
  10,774,248 
  3,819,823 
Current liabilities
    
    
    
Trade and other payables
  7.2 
  1,209,328 
  1,017,306 
Borrowings from CAMMESA
  7.4 
  1,820,826 
  1,753,038 
Other non-financial liabilities
  8.2 
  1,313,420 
  659,668 
Other loans and borrowings
  7.3 
  919,708 
  505,604 
Compensation and employee benefits liabilities
  8.3 
  337,716 
  323,078 
Income tax payable
    
  4,040,635 
  1,096,817 
Provisions
 
Exhibit E
 
  471,919 
  413,474 
 
    
  10,113,552 
  5,768,985 
Liabilities associated with the assets held for sale
  16 
  - 
  129,161 
 
    
  10,113,552 
  5,898,146 
Total liabilities
    
  20,887,800 
  9,717,969 
Total equity and liabilities
    
  44,259,546 
  17,078,969 
 
-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, 2018
 
 
 
Attributable to holders of the parent
 
 
 
 
 
 
 
 
 
Contributions from the owners
 
 
Accumulated results
 
 
 
 
 
 
 
 
 
 
 
 
Capital stock
 
 
Noncapitalized contribution
 
 
Retained earnings
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Facevalue (1)
 
 
Adjustment to capital stock
 
 
Merger premium
 
 
Legal reserve
 
 
Special reserve IGJ Resolution 7/05
 
 
Special reserve CNV General Resolution 609
 
 
Voluntary reserve
 
 
Retained earnings
 
 
Accumulated comprehensive income
 
 
Total
 
 
Non-controlling interests
 
 
Total
 
 
 
ARS 000
 
 
ARS 000
 
 
ARS 000
 
 
ARS 000
 
 
ARS 000
 
 
ARS 000
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of January 1, 2018
  1,514,022 
  664,988 
  376,571 
  286,178 
  55,830 
  177,181 
  450,865 
  3,503,046 
  43,284 
  7,071,965 
  289,035 
  7,361,000 
 
    
    
    
    
    
    
    
    
    
    
    
    
Net income for the period
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  17,360,268 
  - 
  17,360,268 
  (511,072)
  16,849,196 
 
    
    
    
    
    
    
    
    
    
    
    
    
Other comprehensive income for the period
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  (43,284)
  (43,284)
  - 
  (43,284)
 
    
    
    
    
    
    
    
    
    
    
    
    
Total comprehensive income for the period
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  17,360,268 
  (43,284)
  17,316,984 
  (511,072)
  16,805,912 
 
    
    
    
    
    
    
    
    
    
    
    
    
Increase in legal reserve
  - 
  - 
  - 
  149,624 
  - 
  - 
  - 
  (149,624)
  - 
  - 
  - 
  - 
 
    
    
    
    
    
    
    
    
    
    
    
    
Increase in voluntary reserve
  - 
  - 
  - 
  - 
  - 
  - 
  2,293,606 
  (2,293,606)
  - 
  - 
  - 
  - 
 
    
    
    
    
    
    
    
    
    
    
    
    
Dividends in cash
    
    
    
    
    
    
    
  (1,053,620)
  - 
  (1,053,620)
  - 
  (1,053,620)
 
    
    
    
    
    
    
    
    
    
    
    
    
Stock-based payments
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  3,312 
  3,312 
 
    
    
    
    
    
    
    
    
    
    
    
    
Contributions from non-controlling interests
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  255,142 
  255,142 
As of September 30, 2018 (Unaudited)
  1,514,022 
  664,988 
  376,571 
  435,802 
  55,830 
  177,181 
  2,744,471 
  17,366,464 
  - 
  23,335,329 
  36,417 
  23,371,746 
 
(1) At September 30, 2018, a subsidiary held 8,851,848 common shares.
 
 
-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 CHANGES IN EQUITY
for the nine-month period ended September 30, 2017
 
 
 
Attributable to holders of the parent
 
 
 
 
 
 
 
 
 
Contributions from the owners
 
 
Accumulated results
 
 
 
 
 
 
 
 
 
 
 
 
Capital stock
 
 
Noncapitalized contribution
 
 
Retained earnings
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Facevalue (1)
 
 
Adjustment to capital stock
 
 
Merger premium
 
 
Legal reserve
 
 
Special reserve IGJ Resolution 7/05
 
 
Special reserve CNV General Resolution 609
 
 
Voluntary reserve
 
 
Retained earnings
 
 
Accumulated comprehensive income
 
 
Total
 
 
Non-controlling interests
 
 
Total
 
 
 
ARS 000
 
 
ARS 000
 
 
ARS 000
 
 
ARS 000
 
 
ARS 000
 
 
ARS 000
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of January 1, 2017
  1,514,022 
  664,988 
  376,571 
  197,996 
  55,830 
  177,181 
  68,913 
  1,757,051 
  334,747 
  5,147,299 
  6,717 
  5,154,016 
 
    
    
    
    
    
    
    
    
    
    
    
    
Contributions from non-controlling interests
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  2,033 
  - 
  2,033 
  264,880 
  266,913 
 
    
    
    
    
    
    
    
    
    
    
    
    
Net income for the period
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  2,085,652 
  - 
  2,085,652 
  (6,563)
  2,079,089 
 
    
    
    
    
    
    
    
    
    
    
    
    
Other comprehensive income for the period
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  (294,241)
  (294,241)
  - 
  (294,241)
 
    
    
    
    
    
    
    
    
    
    
    
    
Total comprehensive income for the period
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  2,085,652 
  (294,241)
  1,791,411 
  (6,563)
  1,784,848 
 
    
    
    
    
    
    
    
    
    
    
    
    
Increase in legal reserve
  - 
  - 
  - 
  88,182 
  - 
  - 
  - 
  (88,182)
  - 
  - 
  - 
  - 
 
    
    
    
    
    
    
    
    
    
    
    
    
Increase in voluntary reserve
  - 
  - 
  - 
  - 
  - 
  - 
  1,668,869 
  (1,668,869)
  - 
  - 
  - 
  - 
 
    
    
    
    
    
    
    
    
    
    
    
    
Dividends in cash
  - 
  - 
  - 
  - 
  - 
  - 
  (1,286,917)
  7,524 
  - 
  (1,279,393)
  - 
  (1,279,393)
As of September 30, 2017 (Unaudited)
  1,514,022 
  664,988 
  376,571 
  286,178 
  55,830 
  177,181 
  450,865 
  2,095,209 
  40,506 
  5,661,350 
  265,034 
  5,926,384 
 
(1) At September 30, 2017, a subsidiary held 8,851,848 common shares.
 
 
-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.
 
CONSOLIDATED STATEMENT OF CASH FLOWS
for the nine-month period ended September 30, 2018
 
 
 
09-30-2018
 
 
09-30-2017
 
 
 
Unaudited
 
 
Unaudited
 
 
 
ARS 000
 
 
ARS 000
 
 
 
 
 
 
 
 
Operating activities
 
 
 
 
 
 
Income for the period before income tax from continuing operations
  22,775,524 
  2,475,289 
Income for the period before income tax from discontinued operations
  567,628 
  655,481 
Income for the period before income tax
  23,343,152 
  3,130,770 
 
    
    
Adjustments to reconcile income for the period before income tax to net cash flows:
    
    
Depreciation of property, plant and equipment
  237,840 
  181,468 
Disposal of property, plant and equipment
  30,917 
  411 
Amortization of intangible assets
  26,336 
  29,614 
Discount of accounts receivable and payable and income tax payable, net
  (519,971)
  (17,598)
CVO receivables update and interests
  (7,958,658)
  - 
Interest earned from customers
  (850,489)
  (155,942)
Finance income
  (1,485,523)
  (835,800)
Finance expenses
  3,394,618 
  485,927 
Share of the profit of associates
  (830,690)
  (222,915)
Share-based payments
  3,312 
  - 
Movement in provisions and long-term employee benefit plan expense
  81,990 
  57,873 
Foreign exchange difference for trade receivables
  (10,653,625)
  - 
Income from the sale of La Plata plant
  (572,992)
  - 
 
    
    
Changes in operating assets and liabilities:
    
    
Increase in trade and other receivables (1)
  (2,573,033)
  (658,707)
Increase in other non-financial assets, financial assets and inventories
  (520,621)
  (28,602)
Increase in trade and other payables, other non-financial liabilities and liabilities from employee benefits
  2,314,360 
  235,807 
 
  3,466,923 
  2,202,306 
Interest received from customers
  24,692 
  16,451 
Income tax paid
  (1,985,880)
  (574,684)
Net cash flow provided by operating activities
  1,505,735 
  1,644,073 
 
    
    
Investment activities
    
    
Purchase of property, plant and equipment
  (3,908,715)
  (1,034,693)
Sale of available-for-sale financial assets, net
  435,437 
  1,183,627 
Dividends received
  669,348 
  36,372 
Cash flows generated from the sale of La Plata plant
  586,845 
  - 
Others
  - 
  (6)
Net cash flows (used in) provided by investing activities
  (2,217,085)
  185,300 
 
    
    
Financing activities
    
    
Short-term loans received (paid), net
  23,737 
  (191,817)
Long-term loans received
  3,188,944 
  - 
Long-term loans paid
  (1,778,260)
  - 
Interest and other finance expenses paid
  (322,119)
  (42,758)
Dividends paid
  (1,053,620)
  (1,279,393)
Loans paid
  - 
  (994,966)
Borrowings received from CAMMESA
  - 
  403,427 
Contributions from non-controlling interests
  255,142 
  266,913 
Net cash flows provided by (used in) financing activities
  313,824 
  (1,838,594)
 
    
    
Increase in cash and cash equivalents
  (397,526)
  (9,221)
Exchange difference and other financial results
  1,135,124 
  2,088 
Cash and cash equivalents as of January 1
  88,633 
  30,008 
Cash and cash equivalents as of September 30
  826,231 
  22,875 
 
(1) During the nine-month periods ended September 30, 2018 and 2017, the Group has decided to offset CAMMESA borrowings under Resolution 146 with Non-recurrent Maintenance balances for 619,030 (including interests for 208,129) and 325.553 (including interests for 74,270), respectively.
 
 
-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.
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the nine-month period ended September 30, 2018
 
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 and commercialization.
 
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.
 
Our shares are listed on the MERVAL in the Argentinean stock exchange, and, since February 2, 2018, they are listed in the NYSE (“New York Stock Exchange”), both under the symbol “CEPU”.
 
On April 1, 1992, Central Puerto S.A., the consortium-awardee, took possession over Nuevo Puerto and Puerto Nuevo plants, and we began operations.
 
The Group owns in order to carry out its electric energy generation activity 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 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 plant is located in Luján de Cuyo, Province of Mendoza and has an installed capacity of 509 MW and steam generating capacity of 150 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. (“CVOSA”) the Group is engaged in the construction management and operation of the thermal plant Central Vuelta de Obligado, with an installed capacity of 816 MW.
 
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 Distribuidora de Gas del Centro S.A. and Distribuidora de Gas Cuyana S.A.
 
Through its subsidiary Proener S.A., the Group sells and transports any type of fuels both in the country and abroad.
 
Moreover, as a consequence of the incorporation of subsidiaries 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 from the utilization of renewable energy sources.
 
During August and September 2018, the wind farms belonging to CP La Castellana S.A.U. and CP Achiras S.A.U. (CPR subsidiaries) were commissioned, respectively; with a capacity of 99 MW and 48 MW, respectively.
 
 
-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.
 
The award of cogeneration and renewable energy projects to the Group is detailed in note 11.
 
The issuance of Group’s consolidated financial statements of the nine-month period ended September 30, 2018 was approved by the Company’s Board of Directors on November 12, 2018.
 
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”.
 
As at September 30, 2018, conditions are met for the Company´s condensed consolidated financial statements for the 9-month interim period ended on such date to incorporate the inflation adjustment established on IAS 29 “Financial Reporting in Hyperinflationary Economies”. However, as a consequence of reasons detailed in Note 2.2.1 to the attached condensed consolidated financial statements, companies issuing negotiable instruments that pursuant to the foregoing paragraph must prepare their financial statements applying IFRS, must exclude IAS 29. Therefore, these condensed consolidated financial statements do not comply with IFRS requirements.
 
The qualitative effects that IAS 29 may cause are detailed in Note 2.2.2.
 
2.2. Basis of presentation and consolidation
 
These condensed consolidated financial statements for the nine-month period ended September 30, 2018 were prepared applying the financial information framework established by CNV, which was mentioned in Note 2.1.
 
In preparing these consolidated financial statements, the Group and its subsidiaries 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, 2017. Moreover, the Group has applied the changes in accounting policies described in note 2.3.1.
 
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, 2017 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, 2017.
 
The Group’s 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.
 
 
-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.
 
2.2.1. Measuring unit
 
IFRS requires the financial statements of an entity with a functional currency that is hyperinflationary to be restated into a stable currency.
 
So as to be consistent in the identification of an economic environment requiring the restatement of financial statements, IAS 29 establishes certain qualitative indicators and a quantitative factor, which, in international practice, is considered to be relevant and is presented when the cumulative inflation rate over three years is approaching, or exceeds, 100%; which also requires evaluating if it is a temporary circumstance which will be reverted in the short term. The cumulative inflation over three years was maintained during 2017 in decreasing figures regarding 2016 and below the 100% accumulated during three years. However, this trend was reverted during the first semester of 2018 due to factors such as the depreciation of the exchange rate which affected the price of imported supplies; together with an adverse international economic environment. Against this background, the triennial cumulative inflation, measured on the basis of wholesale prices index and customer prices index, stands over 100%, and the new goals reviewed by the Argentine government and other available projections show that this trend will not be reverted in the short term. For these reasons, pursuant to IAS 29, the Argentine economy is currently considered highly inflationary. Therefore, the entities obliged to apply IFRS and whose functional currency is the Argentine peso, must restate their financial statements for the annual or interim periods commenced July 1, 2018. Such restatement must be done as if the economy has always been hyperinflationary, using a general price index showing changes on the currency’s purchasing power.
 
However, Section 3, Chapter III, Title IV of CNV Regulations (N.T. 2013 and its amendments) establishes that the entities under the supervision of the CNV will not be able to apply the restatement method of financial statements into a functional currency under IAS 29. This is due to the fact that Decree no.1259/2002 (amended by Decree no. 664/2003) asks CNV not to accept the presentation of inflation-adjusted financial statement. The exclusion of IAS 29 in the application of IFRS will be in force as long as such decree is valid.
 
Even if financial statements as of September 30, 2018 do not include the effect of inflation, the existence of important variations in relevant economic variables affecting the Company’s business, such as labor cost, the price of the main raw materials and other supplies, loan rates and the exchange rate, can also affect the financial position and results of the Company; and, consequently, such variations should be taken into account when interpreting the information the Company presents in these financial statements regarding its financial position, the results of its operations and cash flows.
 
2.2.2. Differences between the financial reporting framework established by the CNV and IFRS
 
As at September 30, 2018, conditions are met for the Company´s condensed consolidated financial statements for the 9-month interim period ended on such date to incorporate the inflation adjustment established on IAS 29. However, as a consequence of Decree no. 1259/2002 (amended by Decree no. 664/2003) asking CNV not to accept the presentation of inflation-adjusted financial statements, condensed consolidated financial statements ended September 30, 2018, were prepared excluding IAS 29 from the application of IFRS.
 
The following is a summary of the effects the use of IAS 29 may cause:
 
(a) Financial statements must be adjusted to consider changes in the general purchasing power of the currency; therefore, they must be stated in the measurement unit current at the end of the reporting period.
 
(b) In a period of inflation, an entity holding an excess of monetary assets over monetary liabilities (those with a fixed nominal value in local currency) and an entity with an excess of monetary liabilities over monetary assets gain purchasing power to the extent the assets and liabilities are not linked to an adjustment mechanism that compensates, in a way, those effects.
 
 
-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.
 
(c) Briefly, the restatement mechanism of IAS 29 establishes that monetary assets and liabilities will not be restated since they are already expressed in terms of the measuring unit current at the end of the reporting period. Assets and liabilities linked by agreement to changes in prices are adjusted in accordance with such agreements. Non-monetary items carried at amounts current at the end of the reporting period, such as net realizable value or others, do not need to be restated. All other non-monetary assets and liabilities are restated by applying a general price index. The gain or loss on the net monetary position shall be included in profit or loss of the reporting period and separately.
 
At the issuance date of these financial statements, the Company is in the process of quantifying the effects that may result from the application of IAS 29, estimating that such effects will be significant.
 
2.3.1. Changes in accounting policies
 
New standards adopted by the Group
 
The accounting policies adopted in the preparation of the interim condensed consolidated financial statements are consistent with the ones used in the preparation of the Group’s consolidated financial statements for the year ended December 31, 2017, except for the adoption of the following standards, interpretations or amendments.
 
IFRS 15 - Revenue from contracts with customers
 
IFRS 15 applies to revenue from contracts with customers, except for those contracts under the scope of other IFRSs. Such standard revokes IAS 18 “Revenue” and IAS 11 “Construction Contracts”. The new standard establishes a five steps model for recognizing revenue from contracts with customers.
 
IFRS 15 structures this principle through the following five steps:
 
Step 1: Identify the contract with a customer.
 
Step 2: Identify the performance obligations in the contract.
 
Step 3: Determine the transaction price.
 
Step 4: Allocate the transaction price to each performance obligation.
 
Step 5: Recognize revenue when (or while) a performance obligation is satisfied.
 
Pursuant to IFRS 15, revenue is recognized when it shows the amount of consideration to which an entity expects to be entitled in exchange for transferring promised goods or services to a customer.
 
The standard requires the entity to apply judgment taking into account all the relevant factors and circumstances applied to contracts with customers. The standard also specifies measurement of cost increase for obtaining a contract and the cost directly related to fulfilling a contract.
 
Pursuant to IFRS 15, among others, a system on the allocation of the transaction price to each performance obligation is established. According to such standard, the Group shall recognize revenue when a performance obligation is satisfied, i.e. every time “control” over those goods and services is transferred to the customer.
 
The Company has a sole relevant source of income, which consists on the commercialization of energy produced in the spot market under the scheme established by Resolution 19/2017 of the Secretariat of Electric Power (“SEE”), being CAMMESA its main customer.
 
 
-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.
 
At the closing of each month, the Company recognizes its sales revenues in accordance with the availability of its machines’ effective power and the electric power supplied during that month. As balancing entry, a sales receivable is recognized, which represents the Company’s unconditional right to the consideration owed by the customer.
 
Billing for the service is monthly made by CAMMESA in accordance with the guidelines established by SEE; and compensation is received in a maximum term of 90 days. Therefore, no implicit financing components are recognized. The performance obligation is satisfied throughout time.
 
After the analysis, the Company’s management adopted the modified retrospective approach described in paragraph C3 (b) of the above-mentioned standard and it concluded that the current revenue recognition practices are consistent with the requirements of IFRS 15.
 
IFRS 9 – Financial Instruments
 
IFRS 9 replaces IAS 39 “Financial Instruments: Recognition and Measurement” for the annual periods beginning January 1, 2018, and it includes the three aspects of financial instruments measurement: classification and measurement; impairment and hedge accounting.
 
Pursuant to the analysis made, the Company did not book any adjustment on retained earnings as at January 1, 2018. Therefore, the application of IFRS 9 did not mean that the Company had to make modifications to the disclosures made on December 31, 2017 regarding the statements of financial position, changes in equity, comprehensive income and cash flow.
 
The Company used the exception that allows it not to amend the comparative information for previous periods regarding classification and measurement changes (impairment included). As a result, the Company did not apply IFRS 9 requirements to the comparative period presented. For this reason, the comparative information for the year ended December 31, 2017 and for the nine-month period ended September 30, 2017 was not modified.
 
a) Classification and measurement of financial assets and liabilities
 
IFRS 9 maintains, to great extent, the existing requirement of IAS 39 for the classification of financial liabilities.
 
In turn, IFRS 9 has a new classification and measurement approach for financial assets, which reflect the new business model within which assets are held and their contractual cash flow characteristics.
 
IFRS 9 includes three main classification categories for financial assets: measured at amortized cost, fair value through other comprehensive income and fair value through profit or loss. The standard eliminates IAS 39’s existent categories: held to maturity, loans and receivables, and held for trading.
 
A financial asset shall be measured at amortized cost if both of the following conditions are met:
 
(a) the financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows; and
 
(b) the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
 
 
-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.
 
Additionally, and for those assets that comply with the aforementioned conditions, IFRS 9 has an option to designate, at initial recognition, a financial asset as measured at its fair value if doing so it eliminates or significantly reduces a measurement or recognition inconsistency (sometimes referred to as an ‘accounting mismatch’) that would otherwise arise from measuring assets or liabilities or recognizing the gains and losses on them on different bases.
 
If financial assets are not measured at amortized cost in accordance with the aforementioned paragraphs, they will be measured at fair value.
 
This change did not have an impact on the Company.
 
IAS 39 requirements for embedded derivatives in host contracts that are financial liabilities or that are not within the scope of IFRS 9 (such as lease contracts) are maintained, i.e., must be separated if they are not “closely related”.
 
b) Impairment of financial assets and liabilities
 
IFRS 9 replaces IAS 39 “incurred loss” model by the “expected credit losses” (“ECL”) model. This shall require considerable judgment regarding how economic factors affect ECL, which shall be determined on a weighted average basis. ECL derived from the difference between the contractual cash flows and the cash flows at current value that the Group expects to receive.
 
The new impairment model shall be applied to financial assets measured at amortized cost or at fair value through other comprehensive income, except for investments on equity instruments and contract assets recognized under the scope of IFRS 15.
 
Under IFRS 9, loss allowances shall be measured using the following bases:
 
– 12-month ECL: these are expected credit losses that result from default events on a financial instrument that are possible within the 12 months after the reporting date; and
 
– Lifetime ECL: these are expected credit losses that result from all possible default events over the expected life of a financial instrument.
 
Due to the nature of the Group´s customers and their bad debt history, the Company did not identify that the change of approach in the impairment method under IFRS 9 results in the recognition of an adjustment to balances as at January 1, 2018.
 
In the case of financial placements and in accordance with placement policies in force, the Company monitors credit rating and credit risk of these instruments. Pursuant to the analysis made, the Company did not identify that it is necessary to make an adjustment to the balances of such instruments as at January 1, 2018.
 
IFRIC 22 - Foreign Currency Transactions and Advance Consideration
 
This interpretation clarifies the “transaction date” for the purpose of determining the exchange rate to use on initial recognition of a related asset, expense or income, when an entity has received or paid in advance in foreign currency. It applies to transactions in foreign currency when an entity recognizes a non-monetary assets or liability derived from the reception or payment in advance before initial recognition of a related asset, expense or income.
 
So as to determine the exchange rate to use on initial recognition of an asset, expense or income, the transaction date is the date on which a non-monetary asset or liability derived from reception or payment in advance is recognized.
 
 
-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.
 
It is effective for periods beginning on January 1, 2018.
 
This standard had no impact on the condensed consolidated financial statements of the Group because the Company already applied the criteria established by this interpretation.
 
2.3. IFRS issued but not yet effective
 
The following new and/or amended standards and interpretations have been issued but were not effective as of the date of issuance of these consolidated financial statements of the Group. In this sense, only the new and/or amended standards and interpretations that the Group expects to be applicable in the future are indicated. In general, the Group intends to adopt these standards, as applicable, when they become effective.
 
IFRS 16 Leases
 
In January 2016, the IASB issued the final version of IFRS 16 and it replaces IAS 17 Leases, IFRIC 4 Determining whether an arrangement contains a lease, SIC-15 Operating leases-incentives and SIC-27 Evaluating the substance of transactions involving the legal form of a lease. IFRS 16 sets out the principles for the recognition, measurement, presentation and disclosure of leases and requires lessees to account for all leases under a single on-balance sheet model similar to the accounting for finance leases under IAS 17. The standard includes two recognition exemptions leases of “low-value” assets (e.g., personal computers) and short-term leases (i.e., leases with a lease term of 12 months or less). At the commencement date of a lease, a lessee will recognize a liability to make lease payments (i.e., the lease liability) and an asset representing the right to use the underlying asset during the lease term (i.e., the right to-use asset). Lessees will be required to separately recognize the interest expense on the lease liability and the depreciation expense on the right-of-use asset.
 
Lessor accounting under IFRS 16 is substantially unchanged from today’s accounting under IAS 17. Lessors will continue to classify all leases using the same classification principle as in IAS 17 and distinguish between two types of leases: operating and finance leases. IFRS 16 also requires lessees and lessors to make more extensive disclosures than under IAS 17. IFRS 16 is effective for annual periods beginning on or after January 1, 2019. Early adoption is permitted, but not before the entity applies IFRS 15. A lessee can choose to apply the standard using either a full retrospective or modifies retrospective approach.
 
The Group has not yet determined what impact, if any, the adoption of the new standard will have on its consolidated financial statements.
 
IFRIC Interpretation 23 - Uncertainty over Income Tax Treatments
 
In June 2017, the IASB issued IFRIC Interpretation 23 - Uncertainty over Income Tax Treatments. The Interpretation clarifies application of recognition and measurement requirements in IAS 12 Income Taxes when there is uncertainty over income tax treatments. The Interpretation specifically addresses the following: (a) whether an entity considers uncertain tax treatments separately, (b) the assumptions an entity makes about the examination of tax treatments by taxation authorities, (c) how an entity determines taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates and (d) how an entity considers changes in facts and circumstances. IFRIC 23 is effective for annual periods beginning on or after January 1, 2019. Early adoption is permitted.
 
The Group has not yet determined what impact, if any, the adoption of the new interpretation will have on its consolidated financial statements.
 
 
-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.
 
3. Operating segments
 
The following provides summarized information of the operating segments for the nine-month periods ended September 30, 2018 and 2017:
 
 
 
Electric Power Generation
 
 
Natural Gas Transport and Distribution (1)
 
 
Others (1)
 
 
Adjustmentsand Eliminations
 
 
Total
 
 
 
ARS 000
 
 
ARS 000
 
 
ARS 000
 
 
ARS 000
 
 
ARS 000
 
September 30, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
  7,302,975 
  11,022,292 
  491,146 
  (11,397,125)
  7,419,288 
Cost of sales
  (2,778,563)
  (6,950,925)
  (292,035)
  7,145,468 
  (2,876,055)
Administrative and selling expenses
  (725,602)
  (1,202,588)
  - 
  1,202,588 
  (725,602)
Other operating income
  12,152,357 
  103,044 
  - 
  (103,044)
  12,152,357 
Other operating expenses
  (74,718)
  (46,168)
  - 
  46,168 
  (74,718)
CVO receivables update and interests
  7,958,658 
  - 
  - 
  - 
  7,958,658 
Operating income
  23,835,107 
  2,925,655 
  199,111 
  (3,105,945)
  23,853,928 
Other (expenses) income
  (8,359,534)
  (461,329)