Central Puerto Acquires Central Costanera and Reinforces its Growth in Argentina

Rhea-AI Summary

Central Puerto has acquired Central Costanera for $48 million, enhancing its role as the largest electricity producer in Argentina with an installed capacity exceeding 7,100 MW. The acquisition adds 2,305 MW to the existing 4,809 MW.

Central Costanera, contributing nearly 6% of the national electricity generation, serves around 3.5 million homes. This strategic move is seen as a significant investment opportunity, aligning with Central Puerto's expansion goals, while emphasizing operational efficiencies and synergies from unified management.

Positive

• Acquisition strengthens Central Puerto's market position, now holding 17% of Argentina's total generation capacity.
• Strategic purchase at favorable price enhances growth potential and operational efficiencies.

Negative

• None.

• Central Costanera is one of the main power generation plants in Argentina.
• From this operation, Central Puerto will consolidate as the largest company in the electricity generation sector with an installed capacity of more than 7,000 MW.

BUENOS AIRES, ARGENTINA / ACCESSWIRE / February 23, 2023 / As part of the expansion strategy promoted by the main shareholders (Guillermo Reca, the Miguens-Bemberg family and Eduardo Escassany), Central Puerto, the leading company in the production of electrical energy nationwide, acquired Central Costanera for 48 million dollars.

By taking possession of Central Costanera, Central Puerto will add an installed capacity of 2,305 MW -to its already 4,809 MW- and thus will contribute a total of more than 7,100 MW to the Argentine Interconnection System (SADI).

After closing this operation, Osvaldo Reca was appointed as the new president of Central Costanera.

Regarding the advantages of the transaction, Gabriel Ures, commercial director of Central Puerto, recognized that "the value of Central Costanera does not lie only in the machines, but also in what represents the unified management of generation assets in which Central Puerto has extensive technical and operational experience, highlighting these pointsas just some of the advantages that this synergy represents for us".

"All of this means that the cost of the acquisition does not accurately reflect the enormous growth potential of Central Costanera and the efficient cost management that can be produced by the synergies mentioned," concluded Ures.

Fernando Bonnet, General Manager of Central Puerto, stated: "For Central Puerto, the acquisition of Central Costanera represents a great investment opportunity. As a result of its global decarbonization policy and the strategic decision to sell its assets in the country that emerges from the presentation of the Strategic Plan made in November 2022, Enel gave priority to closing the sale process of its thermal generation assets. This allowed us to acquire assets with high potential at a price that represents a unique opportunity for our company".

"We trust that Central Costanera will be strengthened with our arrival since we have the experience, the knowledge, the management and the most efficient management systems to carry it out. This new challenge is part of the conviction that it is necessary to increase the power availability of the Costanera machines in order to strengthen and cover the demand at the national level", added Bonnet.

Central Puerto is a leading Argentine company with extensive experience in the energy industry and already has experience operating generation plants throughout the country. With the incorporation of Central Costanera, the company will reach, together with its assets, a participation of 17% of the total generation capacity of the country.

Central Costanera is located in the City of Buenos Aires, reaching almost 6% participation in the total installed capacity of SADI and generates the energy demanded by 3.5 million homes throughout the country.

Currently, the Costanera plant is made up of six turbo-steam units, with an installed capacity of 1,140 MW of power, and two Combined Cycle units of 315 MW and 850 MW. To this is added 35.6 MW in relation to the purchase of engines from the El Chocón hydroelectric plant.

About Central Puerto:

Central Puerto is a leading company in the production of electrical energy in Argentina that has 14 generation plants of various technologies, +1000 employees and reaches a 17% market share thanks to its operational excellence and profitability. Central Puerto is listed on the Buenos Aires Stock Exchange and, since 2018, on the New York Stock Exchange. Its mission is to produce electricity efficiently, sustainably and in harmony with the environment. In turn, it seeks to contribute to supplying demand, managing businesses in such a way that they create value not only for the company, but also for society. With an installed generation capacity of more than 7,000 MW, to which are added 150 MW of projects that are under construction.

https://www.centralpuerto.com

SOURCE: Central Puerto

View source version on accesswire.com:
https://www.accesswire.com/740486/Central-Puerto-Acquires-Central-Costanera-and-Reinforces-its-Growth-in-Argentina

FAQ

What is the significance of Central Puerto's acquisition of Central Costanera?

The acquisition positions Central Puerto as the largest electricity producer in Argentina, significantly increasing its installed capacity.

How much did Central Puerto pay for Central Costanera?

Central Puerto acquired Central Costanera for $48 million.

What is the installed capacity of Central Costanera?

Central Costanera adds 2,305 MW to Central Puerto's existing capacity.

What impact does the acquisition have on Central Puerto's market share?

With this acquisition, Central Puerto's market share in electricity generation increases to 17%.

What are the future growth prospects following the acquisition of Central Costanera?

The acquisition is expected to create operational synergies and increase power availability to meet national demand.