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Section 1: 6-K (REPORT OF FOREIGN PRIVATE ISSUER)

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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 May, 2019
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
 
 
 
English translation of the consolidated financial statements for the three month period ended on March 31, 2019, together with the independent auditor´s report of Central Puerto S.A. dated May 13, 2019, submitted to the Argentine securities regulator (the Comisión Nacional de Valores, or the CNV) on May 13, 2019
 
 
 
 
 
 
 
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: May 20, 2019
 
 
 
By:
 
/s/ LEONARDO MARINARO
 
 
 
 
Name:
 
Leonardo Marinaro
 
 
 
 
Title:
 
Attorney-in-Fact
 
 
 
 
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Section 2: EX-99.1 (CONSOLIDATED FINANCIAL STATEMENTS)

Blueprint
-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
 Exhibit 99.1
 
 
 
 
Central Puerto S.A.
 
Consolidated financial statements for the three-month periods ended March 31, 2019 and 2018, together with the independent auditor´s report
 
 
-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 
 
Registered office: Av. Edison 2701 - Ciudad Autónoma de Buenos Aires - República Argentina
 
FISCAL YEAR N° 28 BEGINNING JANUARY 1, 2019 FINANCIAL STATEMENTS
FOR THE THREE-MONTH PERIOD ENDED MARCH 31, 2019
 
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
(Note 13)
 
 
 
 
 
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 
 
 
 
-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 INCOME
for the three-month period ended March 31, 2019
  
 
 
 
 
 
03-31-2019
 
 
03-31-2018
 
 
 
Notes
 
 
Unaudited
 
 
 
 
 
 
ARS 000
 
 
ARS 000
 
 
 
 
 
 
 
 
 
 
 
Continuing operations
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
    4 
  6,235,792 
  2,861,120 
Cost of sales
 
Exhibit F
 
  (3,650,749)
  (1,385,877)
Gross income
       
  2,585,043 
  1,475,243 
 
       
    
    
Administrative and selling expenses
 
Exhibit H
 
  (454,552)
  (319,914)
Other operating income
    5.1 
  2,916,680 
  709,824 
Other operating expenses
    5.2 
  (33,636)
  (32,417)
CVO receivables update
    7.1 
  - 
  12,314,618 
Operating income
       
  5,013,535 
  14,147,354 
 
       
    
    
Loss on net monetary position
       
  (1,333,789)
  (309,892)
Finance income
    5.3 
  382,376 
  264,650 
Finance expenses
    5.4 
  (1,473,983)
  (672,198)
Share of the profit of associates
       
  96,668 
  163,998 
Income before income tax from continuing operations
       
  2,684,807 
  13,593,912 
 
       
    
    
Income tax for the period
    6 
  (1,454,832)
  (3,002,989)
Net income for the period from continuing operations
       
  1,229,975 
  10,590,923 
 
       
    
    
Discontinued operations
       
    
    
 
       
    
    
Income after tax for the period from discontinued operations
    14 
  - 
  308,705 
Net income for the period
       
  1,229,975 
  10,899,628 
 
       
    
    
Attributable to:
       
    
    
Equity holders of the parent
       
  1,260,053 
  10,966,539 
Non-controlling interests
       
  (30,078)
  (66,911)
 
       
  1,229,975 
  10,899,628 
 
       
    
    
Basic and diluted earnings per share (ARS)
       
  0.82 
  7.25 
 
       
    
    
Basic and diluted earnings per share from continuing operations (ARS)
       
  0.82 
  7.04 
 
 
 
-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 COMPREHENSIVE INCOME
for the three-month period ended March 31, 2019
 
 
 
 
 
 
03-31-2019
 
 
03-31-2018
 
 
 
Notes
 
 
Unaudited
 
 
 
 
 
 
ARS 000
 
 
ARS 000
 
 
 
 
 
 
 
 
 
 
 
Net income for the period
 
 
 
  1,229,975 
  10,899,628 
 
    
    
Other comprehensive income for the period
 
 
 
    
    
 
    
    
Other comprehensive income to be reclassified to income in subsequent periods
 
 
 
    
    
 
    
    
Loss on financial assets at fair value through other comprehensive income
    5.5 
  - 
  (40,115)
Income tax related to loss on financial assets at fair value through other comprehensive income
    6 
  - 
  14,040 
Other comprehensive income (loss) to be reclassified to income in subsequent periods
    
  - 
  (26,075)
Other comprehensive income for the period
    
  - 
  (26,075)
Total comprehensive income for the period
    
  1,229,975 
  10,873,553 
 
    
    
    
Attributable to:
    
    
    
Equity holders of the parent
    
  1,260,053 
  10,940,464 
Non-controlling interests
    
  (30,078)
  (66,911)
 
    
  1,229,975 
  10,873,553 
 
 
-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 FINANCIAL POSITION
as at March 31, 2019
 

 
 
 
 
03-31-2019
 
 
f12-31-2018
 
 
 
Notes
 
 
Unaudited
 
 
Audited
 
 
 
 
 
 
ARS 000
 
 
ARS 000
 
 
 
 
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
 
 
 
Non-current assets
 
 
 
 
 
 
 
 
 
Property, plant and equipment
 
Exhibit A
 
  27,161,972 
  25,225,630 
Intangible assets
 
 
 
  2,398,008 
  2,498,317 
Investment in associates
 
 
 
  2,322,576 
  2,233,704 
Trade and other receivables
    7.1 
  18,132,403 
  18,635,219 
Other non-financial assets
    8.1 
  274,790 
  249,215 
Inventories
    
  82,382 
  83,484 
 
    
  50,372,131 
  48,925,569 
Current assets
    
    
    
Inventories
    
  297,395 
  246,914 
Other non-financial assets
    8.1 
  444,375 
  553,447 
Trade and other receivables
    7.1 
  12,718,798 
  11,825,044 
Other financial assets
    7.5 
  2,085,232 
  2,196,027 
Cash and cash equivalents
    
  231,910 
  257,032 
 
    
  15,777,710 
  15,078,464 
Total assets
    
  66,149,841 
  64,004,033 
 
    
    
    
Equity and liabilities
    
    
    
Equity
    
    
    
Capital stock
    
  1,514,022 
  1,514,022 
Adjustment to capital stock
    
  12,968,145 
  12,968,145 
Legal reserve
    
  428,549 
  428,549 
Voluntary reserve
    
  4,925,261 
  4,925,261 
Retained earnings
    
  17,708,522 
  16,448,469 
Equity attributable to holders of the parent
    
  37,544,499 
  36,284,446 
Non-controlling interests
    
  541,833 
  522,760 
Total equity
    
  38,086,332 
  36,807,206 
 
    
    
    
Non-current liabilities
    
    
    
Other non-financial liabilities
    8.2 
  2,133,020 
  2,189,604 
Other loans and borrowings
    7.3 
  5,918,259 
  5,816,970 
Borrowings from CAMMESA
    7.4 
  1,074,223 
  1,122,593 
Compensation and employee benefits liabilities
    8.3 
  147,757 
  165,957 
Deferred income tax liabilities
    6 
  5,349,405 
  5,358,018 
 
    
  14,622,664 
  14,653,142 
Current liabilities
    
    
    
Trade and other payables
    7.2 
  2,671,669 
  1,933,661 
Other non-financial liabilities
    8.2 
  1,856,879 
  1,856,573 
Borrowings from CAMMESA
    7.4 
  1,788,404 
  2,026,438 
Other loans and borrowings
    7.3 
  688,643 
  751,896 
Compensation and employee benefits liabilities
    8.3 
  402,564 
  437,240 
Income tax payable
       
  5,471,673 
  4,937,070 
Provisions
 
Exhibit E
 
  561,013 
  600,807 
 
    
  13,440,845 
  12,543,685 
Total liabilities
    
  28,063,509 
  27,196,827 
Total equity and liabilities
    
  66,149,841 
  64,004,033 
 
 
 
-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 three-month period ended March 31, 2019
 
 
 
Attributable to holders of the parent
 
 
 
 
 
 
 
 
 
Capital stock
 
 
Retained earnings
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Facevalue
 
 
Adjustment to capital stock
 
 
 
Legal reserve
 
 
 
Voluntaryreserve
 
 
 
Unappropriated retained earnings
 
 
Other accumulated comprehensive income (loss)
 
 
 
 
Total
 
 
Non-controlling interests
 
 
 
 
Total
 
 
 
ARS 000
 
 
ARS 000
 
 
ARS 000
 
 
ARS 000
 
 
ARS 000
 
 
ARS 000
 
 
ARS 000
 
 
ARS 000
 
 
ARS 000
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of January 1, 2019
  1,514,022 
  12,968,145 
  428,549 
  4,925,261 
  16,448,469 
  - 
  36,284,446 
  522,760 
  36,807,206 
 
    
    
    
    
    
    
    
    
    
Net income for the period
  - 
  - 
  - 
  - 
  1,260,053 
  - 
  1,260,053 
  (30,078)
  1,229,975 
Total comprehensive income for the period
  - 
  - 
  - 
  - 
  1,260,053 
  - 
  1,260,053 
  (30,078)
  1,229,975 
 
    
    
    
    
    
    
    
    
    
Contributions from non-controlling interests
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  43,670 
  43,670 
Share-based payments
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  5,481 
  5,481 
As of March 31, 2019 (1)
  1,514,022 
  12,968,145 
  428,549 
  4,925,261 
  17,708,522 
  - 
  37,544,499 
  541,833 
  38,086,332 
 
    
    
    
    
    
    
    
    
    
As of January 1, 2018
  1,514,022 
  12,968,145 
  181,617 
  1,139,995 
  2,466,176 
  232,497 
  18,502,452 
  535,090 
  19,037,542 
 
    
    
    
    
    
    
    
    
    
Net income for the period
  - 
  - 
  - 
  - 
  10,966,539 
  - 
  10,966,539 
  (66,911)
  10,899,628 
Other comprehensive income for the period
  - 
  - 
  - 
  - 
  - 
  (26,075)
  (26,075)
  - 
  (26,075)
Total comprehensive income for the period
  - 
  - 
  - 
  - 
  10,966,539 
  (26,075)
  10,940,464 
  (66,911)
  10,873,553 
 
    
    
    
    
    
    
    
    
    
Contributions from non-controlling interests
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  14,687 
  14,687 
Share-based payments
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  1,971 
  1,971 
As of March 31, 2018 (1)
  1,514,022 
  12,968,145 
  181,617 
  1,139,995 
  13,432,715 
  206,422 
  29,442,916 
  484,837 
  29,927,753 
 
(1) A subsidiary holds 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 three-month period ended March 31, 2019
 
 
 
03-31-2019
 
 
03-31-2018
 
 
 
Unaudited
 
 
 
ARS 000
 
 
ARS 000
 
 
 
 
 
 
 
 
Operating activities
 
 
 
 
 
 
Income for the period before income tax from continuing operations
  2,684,807 
  13,593,912 
Income for the period before income tax from discontinued operations
  - 
  367,542 
Income for the period before income tax
  2,684,807 
  13,961,454 
 
    
    
Adjustments to reconcile income for the period before income tax to net cash flows:
    
    
Depreciation of property, plant and equipment
  375,128 
  236,620 
Amortization of intangible assets
  105,737 
  92,099 
Discount of accounts receivables and payables, net
  (894)
  545 
CVO receivables update
  - 
  (12,314,618)
Interest earned from customers
  (309,406)
  (147,543)
Finance income
  (382,376)
  (264,650)
Finance expenses
  1,473,983 
  672,198 
Share of the profit of associates
  (96,668)
  (163,998)
Share-based payments
  5,481 
  1,971 
Movements in provisions and long-term employee benefit plan expense
  33,705 
  34,816 
Foreign exchange difference for trade receivables
  (2,607,274)
  (358,785)
Income from the sale of La Plata plant
  - 
  (523,681)
Loss on net monetary position
  (1,463,843)
  (517,930)
 
    
    
Working capital adjustments:
    
    
Increase in trade and other receivables
  2,047,575 
  917,383 
(Increase) Decrease in other non-financial assets and inventories
  34,117 
  (899,875)
Increase in trade and other payables, other non-financial liabilities and liabilities from employee benefits
  618,595 
  419,898 
 
  2,518,667 
  1,145,904 
Interest received from customers
  219,453 
  8,852 
Income tax paid
  (408,554)
  (215,156)
Net cash flows provided by operating activities
  2,329,566 
  939,600 
 
    
    
Investing activities
    
    
Purchase of property, plant and equipment
  (2,316,718)
  (720,128)
Cash flows generated from the sale of the La Plata plant
  - 
  699,625 
Dividends received
  - 
  426,139 
Sale of available-for-sale financial assets, net
  139,629 
  (923,063)
Net cash flows used in investing activities
  (2,177,089)
  (517,427)
 
    
    
Financing activities
    
    
Bank overdrafts received (paid), net
  10,057 
  (425)
Long-term loans received
  - 
  2,676,797 
Long-term loans paid
  (159,253)
  (1,558,626)
Interest and other financial costs paid
  (195,054)
  (55,576)
Contributions from non-controlling interests
  43,670 
  14,687 
Net cash flows (used in) provided by financing activities
  (300,580)
  1,076,857 
 
    
    
(Decrease) Increase in cash and cash equivalents
  (148,103)
  1,499,030 
Exchange difference and other financial results
  115,465 
  42,948 
Monetary results effect on cash and cash equivalents
  7,516 
  172,460 
Cash and cash equivalents as of January 1
  257,032 
  146,279 
Cash and cash equivalents as of December 31
  231,910 
  1,860,717 
 
 
-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 CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
for the three-month period ended March 31, 2019
 
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.
 
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 plant is located in Luján de Cuyo, Province of Mendoza and has an installed capacity of 509 MW and a 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. (“CVO”) the Group is engaged in the 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 belonging to ECOGAS Group.
 
Through its subsidiary Proener S.A., the Group sells and transports any type of fuels both in the country and abroad. Moreover, on July 19, 2018, the National Gas Regulation Entity (Enargas) filed the Company with the Registry of Traders and Trade Agreements of Enargas.
 
 
-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
 
Moreover, as of the incorporation of 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.
 
During 2018, the wind farms belonging to CP La Castellana S.A.U. and CP Achiras S.A.U. (CPR subsidiaries) were commissioned, with a capacity of 99 MW and 48 MW, respectively.
 
The issuance of Group’s condensed consolidated financial statements of the three-month period ended March 31, 2019 was approved by the Company’s Board of Directors on May 13, 2019.
 
1.1.
Overview of Argentine Electricity Market
 
Resolution of the Secretariat of Renewable Resources and Electricity Market no. 1/2019
 
On March 1, 2019 Resolution no. 1/2019 (“Resolution 1”) of the Secretariat of Renewable Resources and Electricity Market was published in the Official Gazette by virtue of which Resolution 19 was abolished. It establishes the new remuneration values of energy, power and associated services for the affected generators, as well as their application methodology. Its validity commences on the date of its publication in the Official Gazette.
 
According to Resolution 1, the approved remuneration system will be of transitional application and until the following are defined and gradually implemented: regulatory mechanisms aimed at reaching an autonomous, competitive and sustainable operation that allows for freedom of contract between supply and demand; and a technical, economical and operative functioning for the integration of different generation technologies so as to guarantee a reliable and cost effective system.
 
The following are the main changes introduced by Resolution 1 in connection with Resolution 19: Energy Sale:
 
The price of energy generated by thermal power stations is reduced. Therefore, the price for energy generated with natural gas is of 4 USD/MWh and 7 USD/MWh for energy generated with liquid fuel.
 
The price for energy generated from non-conventional energy sources (renewable energies) is fixed at 28 USD/MWh.
 
Power Sale:
 
DIGO price (established by Resolution 19) goes from 7,000 USD/MW-month during the twelve months of the year to 7,000 USD/MW-month the six months of higher seasonal demand for electrical energy (December, January, February, June, July and August) and to 5,500 USD/MW-month the remaining months of the year (March, April, May, September, October and November).
 
Some minimum values of offered availability are changed. Its compliance is subject to the foregoing prices, in accordance with the following chart:
 
 
Technology
 
Resolution 19
 
 
Resolution 1
 
 
 
 
 
 
 
 
Big CC P > 150 MW
  3050 
  3050 
Small CC P ≤ 150 MW
  3400 
  3400 
Big ST P > 100 MW
  4350 
  4350 
Small ST P ≤ 100 MW
  5700 
  5200 
Big GT P > 50 MW
  3550 
  3550 
Small GT P ≤ 50 MW
  4600 
  4600 
Internal Combustion Engines
  5700 
  5200 
 
 
 
-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
 
A weighting factor is fixed for the foregoing prices, between 1 and 0.7, depending on the use factor of the twelve months previous to each month of the transaction.
 
To date, the energy purchase agreements entered into by the Group with CAMMESA are not affected by the provisions of Resolution 1.
 
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 December 31, 2018, conditions are met for the Company´s consolidated financial statements for the year ended on such date and subsequent dates to incorporate the inflation adjustment established on IAS 29 “Financial Reporting in Hyperinflationary Economies”. 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, 2018.
 
2.2.
Basis of presentation and consolidation
 
These condensed consolidated financial statements for the three-month period ended March 31, 2019 were prepared applying the financial information framework established by CNV, which was 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, 2018.
 
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, 2018 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, 2018.
 
 
-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
 
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 March 31, 2019, 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 inflation was 11.78% and 6.66% in the three-month periods ended March 31, 2019 and 2018, respectively.
 
2.3.          
Changes in accounting policies
 
New standards and interpretations adopted
 
As from the fiscal year beginning January 1, 2019, 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.
 
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.
 
As of March 31, 2019, these changes did not have significative effects on the Group.
 
 
-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
 
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.
 
As of March 31, 2019, these changes did not have significative effects on the Group.
 
3.
Operating segments
 
The following provides summarized information about the net income from continuing operations of the operating segments for the three-month periods ended March 31, 2019 and 2018:
 
 
 
 
03-31-2019
 
 
Electric Power Generation
 
 
Natural Gas Transport and Distribution (1) (2)
 
 
 
 
Others (1)
 
 
Adjustmentsand Eliminations
 
 
 
 
Total
 
 
 
ARS 000
 
 
ARS 000
 
 
ARS 000
 
 
ARS 000
 
 
ARS 000
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
  6,101,928 
  3,035,199 
  302,181 
  (3,203,516)
  6,235,792 
Cost of sales
  (3,543,642)
  (2,208,992)
  (186,183)
  2,288,068 
  (3,650,749)
Administrative and selling expenses
  (454,552)
  (544,368)
  - 
  544,368 
  (454,552)
Other operating income
  2,916,276 
  155,112 
  404 
  (155,112)
  2,916,680 
Other operating expenses
  (27,993)
  (13,115)
  (5,643)
  13,115 
  (33,636)
 
    
    
    
    
    
Operating income
  4,992,017 
  423,836 
  110,759 
  (513,077)
  5,013,535 
 
    
    
    
    
    
Other (expenses) income
  (3,868,814)
  (241,417)
  (12,185)
  338,856 
  (3,783,560)
 
    
    
    
    
    
Net income for the segment
  1,123,203 
  182,419 
  98,574 
  (174,221)
  1,229,975 
Share in the net income for the segment
  1,123,203 
  72,301 
  34,471 
  - 
  1,229,975 
 
03-31-2018
 
 
Electric Power Generation
 
 
Natural Gas Transport and Distribution (1) (2)
 
 
 
 
Others (1)
 
 
Adjustmentsand Eliminations
 
 
 
 
Total
 
 
 
ARS 000
 
 
ARS 000
 
 
ARS 000
 
 
ARS 000
 
 
ARS 000
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
  2,810,883 
  2,658,216 
  223,296 
  (2,831,275)
  2,861,120 
Cost of sales
  (1,356,929)
  (1,718,883)
  (131,529)
  1,821,464 
  (1,385,877)
Administrative and selling expenses
  (319,914)
  (436,622)
  - 
  436,622 
  (319,914)
Other operating income
  709,824 
  69,005 
  - 
  (69,005)
  709,824 
Other operating expenses
  (32,417)
  (9,924)
  - 
  9,924 
  (32,417)
CVO receivables update
  12,314,618 
  - 
  - 
  - 
  12,314,618 
 
    
    
    
    
    
Operating income
  14,126,065 
  561,792 
  91,767 
  (632,270)
  14,147,354 
 
    
    
    
    
    
Other (expenses) income
  (3,755,282)
  (16,332)
  (9,287)
  224,470 
  (3,556,431)
 
    
    
    
    
    
Net income for the segment
  10,370,783 
  545,460 
  82,480 
  (407,800)
  10,590,923 
Share in the net income for the segment
  10,370,783 
  194,822 
  25,318 
  - 
  10,590,923 
 
(1)
Includes information from associates.
(2)
Includes income (expenses) related to resale of gas transport and distribution capacity.
 
 
-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
 
4.
Revenues
 
 
 
03-31-2019
 
 
03-31-2018
 
 
 
ARS 000
 
 
ARS 000
 
 
 
 
 
 
 
 
Revenues from Resolution 1, Resolution 19, SGE Resolution 70/2018,Resolution 95/2013 and amendments
  5,534,906 
  2,667,047 
Sales under contracts
  517,679 
  80,939 
Steam sales
  49,343 
  62,898 
Resale of gas transport and distribution capacity
  50,573 
  50,236 
Revenues from CVO thermal plant management
  83,291 
  - 
 
  6,235,792 
  2,861,120 

5.
Other income and expenses
 
5.1.                    
Other operating income
 
 
 
03-31-2019
 
 
03-31-2018
 
 
 
ARS 000
 
 
ARS 000
 
 
 
 
 
 
 
 
Interest earned from customers
  309,406(1)
  147,543(1)
Foreign exchange difference, net
  2,607,274(2)
  358,785(2)
Recovery of insurance
  - 
  202,850 
Others
  - 
  646 
 
  2,916,680 
  709,824 

(1)
Includes 7,026 and 8,650 related to receivables under FONINVEMEM I and II Agreements for the three-month periods ended March 31, 2019 and 2018, respectively. It also includes 218,935 related to CVO receivables for the three-month period ended March 31, 2019.
(2)
Includes 120,392 and 86,604 related to receivables under FONINVEMEM I and II Agreements for the three-month periods ended March 31, 2019 and 2018, respectively. It also includes 2,578,668 related to CVO receivables for the three-month period ended March 31, 2019.
 
5.2.                    
Other operating expenses
 
 
 
03-31-2019
 
 
03-31-2018
 
 
 
ARS 000
 
 
ARS 000
 
 
 
 
 
 
 
 
Charge related to the provision for lawsuits and claims
  (23,592)
  (23,571)
Others
  (10,044)
  (8,846)
 
  (33,636)
  (32,417)
 
5.3.                    
Finance income
 
 
 
 
03-31-2019
 
 
03-31-2018
 
 
 
ARS 000
 
 
ARS 000
 
 
 
 
 
 
 
 
Interest earned
  17,934 
  49,969 
Net income on financial assets at fair value through profit or loss (1)
  248,977 
  101,843 
Foreign exchange differences
  115,465 
  43,712 
Net income on disposal of financial assets at fair value through other comprehensive income (1)
  - 
  69,126 
 
  382,376 
  264,650 
 
 
(1) Net of 16,640 and 11,231 corresponding to turnover tax for the three-month periods ended March 31, 2019 and 2018, respectively.
 
 
-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

5.4.
Finance expenses
 
 
 
03-31-2019
 
 
03-31-2018
 
 
 
ARS 000
 
 
ARS 000
 
 
 
 
 
 
 
 
Interest on loans and borrowings from CAMMESA
  (459,192)
  (395,725)
Foreign exchange differences
  (948,333)
  (264,872)
Bank commissions for loans and others
  (2,978)
  (11,546)
Others
  (63,480)
  (55)
 
  (1,473,983)
  (672,198)
 
 
5.5.
Movements from financial assets at fair value through other comprehensive income
 
 
 
03-31-2019
 
 
03-31-2018
 
 
 
ARS 000
 
 
ARS 000
 
 
 
 
 
 
 
 
Financial assets at fair value through other comprehensive income
 
 
 
 
 
 
Gain for the period
  - 
  28,678 
Reclassification adjustments to income
  - 
  (68,793)
Loss for financial assets at fair value through other comprehensive income
  - 
  (40,115)
 
 
6.        
Income tax
 
The major components of income tax during the three-month periods ended March 31, 2019 and 2018, are the following:

Consolidated statements of income and comprehensive income
 
Consolidated statement of income
 
 
 
 
03-31-2019
 
 
03-31-2018
 
 
 
ARS 000
 
 
ARS 000
 
 
 
 
 
 
 
 
Current income tax
 
 
 
 
 
 
Income tax charge for the period
  (1,463,445)
  (2,299,706)
Adjustment related to current income tax for the prior period
  - 
  - 
 
    
    
Deferred income tax
    
    
Related to the net variation in temporary differences
  8,613 
  (703,283)
Income tax
  (1,454,832)
  (3,002,989)
 
Consolidated statement of comprehensive income
 
 
 
03-31-2019
 
 
03-31-2018
 
 
 
ARS 000
 
 
ARS 000
 
 
 
 
 
 
 
 
Income tax for the year related to items charged or credited directly to other comprehensive income
 
 
 
 
 
 
Deferred income tax
  - 
  14,040 
Income tax charged to other comprehensive income
  - 
  14,040 
 
 
-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
 
The reconciliation between income tax in the consolidated statement of income and the accounting income multiplied by the statutory income tax rate for the three-month periods ended March 31, 2019 and 2018, is as follows:
 
 
 
03-31-2019
 
 
03-31-2018
 
 
 
ARS 000
 
 
ARS 000
 
 
 
 
 
 
 
 
Income before income tax from continuing operations
  2,684,807 
  13,593,912 
Income before income tax from discontinued operations
  - 
  367,542 
Income before income tax
  2,684,807 
  13,961,454 
 
    
    
At statutory income tax rate of 30%
  (805,442)
  (4,188,436)
Share of the profit of associates
  4,449 
  (4,538)
Effect related to statutory income tax rate change (1)
  62,765 
  263,444 
Effect related to the discount of income tax payable
  (241,044)
  578,611 
Income (loss) on net monetary position
  (475,553)
  290,046 
Others
  (7)
  (953)
Income tax for the period
  (1,454,832)
  (3,061,826)
Income tax attributable to continuing operations
  (1,454,832)
  (3,002,989)
Income tax attributable to discontinued operations
  - 
  (58,837)
 
  (1,454,832)
  (3,061,826)
 
(1) Effect of applying the changes in the statutory income tax rate established by Law 27,430, as described in Note 20 to the issued consolidated financial statements of December 31, 2018, to the deferred assets and liabilities, according to its expected term of realization and settlement, respectively.
 
Deferred income tax
 
Deferred income tax relates to the following:
 
 
 
 
Consolidated statement of financial position
 
 
Consolidated statement of income and statement of other comprehensive income
 
 
 
03-31-2019
 
 
03-31-2018
 
 
03-31-2019
 
 
03-31-2018
 
 
 
ARS 000
 
 
ARS 000
 
 
ARS 000
 
 
ARS 000
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Provisions and others
  82,084 
  76,531 
  5,553 
  3,132 
Provision for plant dismantling
  - 
  - 
  - 
  (64,875)
Trade receivables
  - 
  - 
  - 
  10,313 
Other financial assets
  (130,979)
  (163,220)
  32,241 
  (2,493)
Employee benefit liability
  45,398 
  48,580 
  (3,182)
  (3,511)
Receivables and other non-financial liabilities
  809 
  723 
  86 
  - 
Investments in associates
  (490,392)
  (466,761)
  (23,631)
  174,863 
Property, plant and equipment - Material & spare parts
  (3,576,360)
  (3,412,601)
  (163,759)
  267,142 
Intangible assets
  (425,379)
  (449,315)
  23,936 
  45,029 
Deferred tax income
  (1,997,916)
  (2,035,751)
  37,835 
  (1,129,973)
Tax loss carry-forward
  1,143,330 
  1,043,796 
  99,534 
  11,130 
Deferred income tax (expense) income
    
    
  8,613 
  (689,243)
Deferred income tax liabilities, net
  (5,349,405)
  (5,358,018)
    
    
 
 
 
-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
 
Deferred income tax liability, net, disclosed in the consolidated statement of financial position
 
 
 
Consolidated statement of financial position
 
 
 
03-31-2019
 
 
  12-31-2018
 
 
 
ARS 000
 
 
ARS 000
 
Deferred income tax asset
 
 
 
 
 
 
Continuing operations
  1,271,621 
  1,169,630 
Discontinued operations
  - 
  - 
 
    
    
Deferred income tax liability
    
    
Continuing operations
  (6,621,026)
  (6,527,648)
Discontinued operations
  - 
  - 
Deferred income tax liability, net
  (5,349,405)
  (5,358,018)
 
Reconciliation of deferred income tax liabilities, net
 
 
 
Consolidated statement of financial position
 
 
 
03-31-2019
 
 
03-31-2018
 
 
 
ARS 000
 
 
ARS 000
 
 
 
 
 
 
 
 
Amount at beginning of year
  (5,358,018)
  (4,296,914)
Deferred income tax recognized in profit or loss and in other comprehensive income during the period - continuing operations
  8,613 
  (676,437)
Amount at end of period
  (5,349,405)
  (4,973,351)
 
7.
Financial assets and liabilities
 
7.1.
Trade and other receivables
 
 
 
03-31-2019
 
 
12-31-2018
 
 
 
ARS 000
 
 
ARS 000
 
 
 
 
 
 
 
 
Non-current:
 
 
 
 
 
 
Trade receivables - CAMMESA
  18,132,359 
  18,635,171 
Guarantee deposits
  44 
  48 
 
  18,132,403 
  18,635,219 
 
    
    
Current:
    
    
Trade receivables - CAMMESA
  12,260,670 
  11,518,657 
Trade receivables - YPF SA and YPF Energía Eléctrica SA
  104,648 
  84,792 
Trade receivables - Large users
  77,606 
  98,361 
Receivables from associates and other related parties
  65 
  962 
Other receivables
  279,612 
  126,411 
 
  12,722,601 
  11,829,183 
Allowance for doubtful accounts - Exhibit E
  (3,803)
  (4,139)
 
  12,718,798 
  11,825,044 
 
 
-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
 
FONINVEMEM I and II: The receivables under FONINVEMEM I and II Agreements are included under “Trade receivables - CAMMESA”. Such receivables are being collected in 120 equal, consecutive monthly installments beginning in February and January 2010, when Thermal Jose de San Martin and Thermal Manuel Belgrano plants, commenced operations, respectively. Since those dates, CAMMESA has made all payments of principal and interest in accordance with the above-mentioned contractual agreements.
 
During the three-month periods ended March 31, 2019 and 2018 collections of these receivables amounted to 204,095 and 156,127, respectively.
 
CVO receivables
 
As described in note 1.2.a) to the issued consolidated financial statements as of December 31, 2018, 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”.
 
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. The onetime estimated income (before income tax) in relation to the increase in value due to the novation of CVO credits to US dollars as of March 20, 2018 (due to the combined effect of exchange rate variation and the application of LIBOR rate plus a 5% margin) reaches approximately ARS 12,314,618 and it was recognized in the consolidated income statement for the three-month period ended March 31, 2018 under “CVO receivables update”. At nominal terms, the exchange difference and interests accrued during the three-month period ended March 31, 2019 amounted to approximately ARS 2,579 million and ARS 219 million, respectively, and they are disclosed under “Other operating income” in the consolidated income statement for three-month period ended March 31, 2019.
 
As of the date of these financial statements, we have collected 609,030 related to January 2019 and February 2019 installments, pursuant to the CVO agreement’s original disbursement schedule, while the issuance of the documents related to March 2018 - December 2018 installments is still remaining.
 
CVO Credits are expressed in USD and they accrue LIBOR interest at a 5% rate.
 
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, 2018.
 
 
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
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  12-31-2019 
  30,851,201 
  28,854,733 
  1,062,728 
  331,772 
  365,962 
  231,337 
  4,669 
  12-31-2018 
  30,460,263 
  30,427,474 
  2,296 
  24,039 
  1,234 
  113 
  5,107 
 
-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
 
 
7.2.                    
Trade and other payables
 
 
 
03-31-2019
 
 
12-31-2018
 
 
 
ARS 000
 
 
ARS 000
 
Current:
 
 
 
 
 
 
Trade payables
  2,562,004 
  1,897,252 
Insurance payable
  624 
  3,388 
Payables to associates
  109,041 
  33,021 
 
  2,671,669 
  1,933,661 
 
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, 2018.
 
For the terms and conditions of payables to related parties, refer to Note 10.
 
7.3.                    
Other loans and borrowings
 
 
 
03-31-2019
 
 
12-31-2018
 
 
 
ARS 000
 
 
ARS 000
 
Non-current
 
 
 
 
 
 
 
 
 
 
 
 
 
IFC and IIC loan
  5,850,267 
  5,797,900 
Derivative financial liabilities not designated as hedging instrument - Interest rate swap
  67,992 
  19,070 
 
  5,918,259 
  5,816,970 
Current
    
    
 
    
    
IFC and IIC loan
  555,827 
  501,536 
Borrowings from Banco de Galicia y Buenos Aires S.A.
  100,403 
  240,976 
Bank overdrafts
  32,413 
  9,384 
 
  688,643 
  751,896 
 
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”).
 
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.
 
 
-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
 
In accordance with the terms of the agreement subscribed by CP Achiras, USD 40.7 million accrue an interest rate equal to LIBOR plus 5.25%, and the rest at LIBOR plus 4% and 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, 2018. As of March 31, 2019, the Group has met such obligations.
 
Under the subscribed trust guarantee agreement, as at March 31, 2019, there are commercial liabilities with specific assignment for the amount of 463,775.
 
7.3.2.
Loans from Banco de Galicia y Buenos Aires S.A. to CP La Castellana and CP Achiras
 
On October 26, 2017 and October 30, 2017, CP La Castellana and CP Achiras entered into loans with Banco de Galicia y Buenos Aires S.A. in the amount of 330,000 and 175,000, respectively (nominal value). Such loans accrue interest at an interest rate equal to BADLAR private banks plus a 3.10% margin and shall mature on the dates that are two years from the execution and disbursement. The proceeds from these loans were used to finance the Achiras Project and the La Castellana Project. We have fully, unconditionally and irrevocably guaranteed, as primary obligor, all payment obligations assumed and/or to be assumed by CP La Castellana and CP Achiras under these loans and any other ancillary document related to them.
 
As of the date of these financial statements, the loans have been fully paid.
 
Loans for wind turbines acquisition
 
On November and December 2017, CP La Castellana and CP Achiras entered into short-term bridge loans from Banco Galicia y Buenos Aires S.A for a total amount of USD 50.5 million and USD 27 million, respectively, for the acquisition of wind turbines. These loans accrued interest at a 3.6% annual rate.
 
In addition, on January 15, 2018, CP Achiras entered into a short-term loan from Banco Galicia y Buenos Aires S.A. for a total amount of USD 7.0 million for the acquisition of wind turbines. This loan accrued interest at a 3.1% annual rate.
 
On January 9, 2018 and April 9 and 10, 2018, CP La Castellana and CP Achiras, respectively, completely cancelled the loans obtained with the funds received from the loans described in the note 7.3.1.
 
7.3.3.
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 19.7 to the issued financial statements as at December 31, 2018.
 
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.
 
As of the date of these financial statements, the loan has not been disbursed by KfW.
 
 
-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
 
7.4.                    
Borrowings from CAMMESA
 
 
 
2018
 
 
2017
 
 
 
ARS 000
 
 
ARS 000
 
Non-current:
 
 
 
 
 
 
CAMMESA loans
  1,074,223 
  1,122,593 
 
    
    
Current:
    
    
CAMMESA loans
  601,686 
  830,037 
CAMMESA prepayments
  1,186,718 
  1,196,401 
 
  1,788,404 
  2,026,438