Central Puerto: Strengthened Portfolio and US$ 545 Million Additional Cash Flow from FONINVEMEM Receivables

BUENOS AIRES, Argentina–(BUSINESS WIRE)–Central Puerto S.A. (ÔÇ£Central PuertoÔÇØ or the ÔÇ£CompanyÔÇØ) (NYSE:CEPU), the
largest private sector power generation company in Argentina, as
measured by generated power, reports its consolidated financial results
for the three-month period ended March 31, 2018 (ÔÇ£First QuarterÔÇØ or
ÔÇ£1Q2018ÔÇØ).

A conference call to discuss 1Q2018 financial results will be held on
May 15, 2018 at 12:00 p.m. Eastern Time (see details below). All
information provided is presented on a consolidated basis, unless
otherwise stated.

All figures are expressed in Argentinean Pesos and growth comparisons
refer to the same period of the prior year, except when otherwise
specified. Definitions and terms used herein are provided in the
Glossary at the end of this document. This release does not contain all
of the CompanyÔÇÖs financial information. As a result, investors should
read this release in conjunction with Central PuertoÔÇÖs consolidated
financial statements and the notes to those statements for the quarter
ended March 31, 2018, which will be available on the CompanyÔÇÖs website.

A. First Quarter 2018 Highlights

Conventional energy

Strengthened portfolio: In March 2018, the Vuelta de Obligado
plant (CVO) received approval for commercial operation with an installed
capacity of the 779 MW (the ÔÇ£Commercial Operations Approval of CVO
PlantÔÇØ). The Company is the largest private player in the operating
companies of the FONINVEMEM (FONI) plants (totaling 2,554 MW).

US$ 545 million in receivables to be collected starting in 2018: FONI
receivables associated to CVO accrue interest at 30-day LIBOR + 5% and
will be collected in 120 monthly installments. This transaction resulted
in a one-time gain of Ps. 7,959 million increasing 1Q2018 Adjusted
EBITDA 21x to Ps. 9,683 million.

Adjusted EBITDA increased 295% when excluding the effect of the
Commercial Operations Approval of CVO Plant in Other Operating Results:
Adjusted EBITDA increased to Ps. 1,724 million after a 63%
increase in Revenues, and a 18 p.p. increase in Gross Profit
Margins, and despite a 10% temporary decrease in production explained
by a scheduled maintenance of the Puerto Combined Cycle Plant in
mid-March.

Strong Balance Sheet to fund existing and new growth opportunities:
1,252% increase in Cash and Cash Equivalents to Ps. 1,203 million and
112% increase in Current Financial Assets to Ps. 2,359 million, both as
of March 31, 2018, when compared to December 31, 2017.

Renewable Energy

High degree of progress in Achiras I and La Castellana construction
in 1Q2018: Projects remain within budget and the wind farms, with an
installed capacity of 147 MW, will be fully operational during June and
July 2018, respectively.

Disbursement received for La Castellana: First disbursement
received from IIC-IFC of US$ 80 million, as a reference Ps. 1,385
million at the exchange rate of the disbursement date, in 15-year loans
to finance the construction of La Castellana wind farm and to cancel
short-term loans for US$ 50.5 million related to the project. Under the
IIC-IFC facility, a project finance structure, Central Puerto agreed,
among other things, to fully, unconditionally and irrevocably guarantee,
as primary obligor, all payment obligations assumed by CP La Castellana
until the project reaches the project completion date, which we expect
will occur 9 months after the commercial operation date (expected to be
in July 2018)1. Accordingly, after the project completion
date, Central Puerto will be released from its obligation as guarantor.

B. Recent News

Dividends from associates: Dividends of US$ 11.4 million received
from TGM, related to YPF claim. Dividends of US$ 6 million received from
DGCU (part of Ecogas).

Distribution of cash dividends: A distribution of cash dividends
equivalent to Ps. 0.70 per common share, which as a reference equals
approximately US$ 0.28 per ADR2, was approved at Central
PuertoÔÇÖs annual ordinary shareholdersÔÇÖ meeting, which was held on April
27, 2018.

Renewable energy

Continuously delivering on capacity growth ÔÇô New renewable projects
for 91 MW: CP Renovables and certain of its subsidiaries were
granted dispatch priority to the grid for additional 49 MW in Achiras II
wind project and for 42 MW in La Genoveva II wind project, both through
MATER II, adding the possibility to sell this new power capacity
directly to large users.

Disbursement received for Achiras I: First disbursement received
from IIC-IFC3 of US$ 51 million, as a reference Ps. 1023
million at the exchange rate of the disbursement date, in 15-years loans
to finance construction of Achiras I wind farm and to cancel short-term
loans for US$ 34 million related to the project. Under the IIC-IFC
facility, a project finance structure, Central Puerto agreed, among
other things, to fully, unconditionally and irrevocably guarantee, as
primary obligor, all payment obligations assumed by CP Achiras I until
the project reaches the project completion date, which we expect will
occur 9 months after the commercial operation date (expected to be in
June 2018)4. Accordingly, after the project completion date,
Central Puerto will be released from its obligation as guarantor.

C. Main operating metrics

The table below sets forth key operating metrics for 1Q2018, compared to
4Q2017 and 1Q2017:

Conventional energy

In 1Q2018, energy generation from continuing operations decreased 10% to
3,444 GWh, compared to 1Q2017, mainly affected by a 22% decrease in
thermal generation explained by a scheduled maintenance in Puerto
combined cycle plant in mid-March 2018. Programmed maintenance
activities will finish in May 2018. The impact in thermal production was
temporary and partially offset by a 75% increase in hydro generation due
to greater water flow. During 1Q2018, machine availability of thermal
units increased to 89%, compared to 88% in 1Q2017, showing a sustained
level well above the market average availability for thermal units for
the same period of 79%, according to data from CAMMESA. Finally, steam
production showed a slight decrease with 275,000 tons produced during 1Q
2018.

Renewable energy

The construction of Achiras I and La Castellana wind farms, projects
awarded under the Renovar Program with 48 MW and 99 MW respectively, are
within budget and are expected to be fully completed and operational
during June and July 2018, respectively. In Achiras I wind farm, located
in Cordoba province, all 15 wind turbines (3.2 MW) have been installed
and civil work has been completed. The Company is currently working on
the connection of the farm to the electricity grid through a 16 km
high-voltage power line. In addition, in La Castellana wind farm,
located in Buenos Aires province, all 32 wind turbines of 3.15 MW have
been installed and civil work has been completed, and we expect it will
be shortly connected to the grid through a 35 km high-voltage power line.

D. Financials

Main financial magnitudes of continuing operations

Main financial magnitudes of continuing operations (dollar
convenience translation)

Adjusted EBITDA Reconciliation

1Q2018 Results Analysis

Revenues from continuing operations increased 63% to Ps. 1,804
million in 1Q2018, as compared to Ps. 1,107 million in 1Q2017. The
increase in revenues was mainly driven by: (i) the tariff increase
established by Res. 19/17, which set higher prices for energy generation
and machine availability and set the prices in US dollars -1Q2018 was
the first quarter fully-impacted by this tariff increase-; and (ii) an
increase of 26% in the average exchange rate of 1Q2018, as compared to
the average exchange rate of 1Q2017, which impacted on tariffs set in US
dollars; partially offset by (iii) a 10% decrease in energy generation
that reached 3,444 GWh during 1Q2018.

The table below sets forth the tariff scheme for Energia Base effective
since November 2017, by source of generation:

Adjusted EBITDA reached Ps. 9,683 million in 1Q2018, compared to
Ps. 436 million in 1Q2017. This exceptionally high increase was driven
by: (i) the increase in revenues mentioned above; (ii) a non-recurrent
significant increase in Other Operating Results, net as a consequence of
the approval of commercial operations of CVO in March 2018. This key
milestone described in (ii) resulted in a one-time gain, before income
tax, of Ps. 7,959 million, broken down into Ps. 3,356 million in
Interests and Ps. 4,603 million in Exchange Rate Differences; and (iii)
a less-than-proportional increase in costs of sales that reached to Ps.
748 million representing 41% of Revenue, compared to 59% in 1Q2017,
showing an increase of 18 p.p. in Gross Profit Margin. The increase in
the cost of sales was primarily driven by (i) an increase in the natural
gas transportation and distribution tariffs, and (ii) a higher cost of
natural gas for the units that generate steam or electric energy under
the Energía Plus framework, mainly due to an increase of 26% in the
average exchange rate of 1Q2018, as compared to the average exchange
rate of 1Q2017, which impacted on the dollar-denominated price of this
fuel.

Adjusted EBITDA increased 295% to Ps. 1,724 million in 1Q2018
(excluding the effect of the Commercial Operations Approval of CVO Plant
in Other Operating Results), compared to Ps. 438 million in
1Q2017. The increase was driven by: (i) the increase in revenues and
(ii) an increase in Gross Profit Margin of 18 p.p. explained above.

Adjusted EBITDA + FONINVEMEM collections increased 249% to Ps. 1822
million in 1Q2018 (excluding the effect of the Commercial Operations
Approval of CVO Plant in Other Operating Results), compared to
Ps. 522 million in 1Q2017. During 1Q2018, the company received Ps. 99
million (including VAT) from FONINVEMEM receivables, compared to Ps. 86
million (including VAT) in 1Q2017.

Net income increased to Ps. 7,502 million or Ps. 4.85 per share, in
1Q2018, compared to Ps. 525 million or Ps. 0.35 per share, in
1Q2017. In addition to the above-mentioned facts, net income was (i)
positively impacted by higher results from the share of profit of
associates which amounted to Ps. 148 million in 1Q2018, as compared to
Ps. 14 million in 1Q2017, mainly due to higher results from Ecogas, and
(ii) was negatively impacted by higher financial expenses that amounted
to Ps.264 million in 1Q2018, compared to a Ps. 139 million in 1Q2017.
The increasing Financial expenses in 1Q2018 were mainly driven by the
interest charges related to financial obligations assumed by the Company
through its subsidiary CP Renovables.

Financial Situation

As of March 31, 2018, the Company and its subsidiaries showed a
strengthened balance sheet with Cash and Cash Equivalents of Ps.
1,203 million, and Current Financial Assets of Ps. 2,359 million,
showing a 1,252% and 112% increase respectively, when compared to
December 31, 2017 figures. Some of the events that contributed to
increase liquidity were:

• Dividends received from DGCE and IGCE (both part of Ecogas) in the
  amount of US$ 6.5 million and US$ 7.1 million, respectively.
• Payment received from YPF in the amount of US$ 31.5 million related to
  the successful transfer of La Plata Plant to YPF EE in 1Q2018.
• First disbursement received from the IIC-IFC facility for an amount of
  US$ 80 million, as a reference Ps. 1,385 million at the exchange rate
  of the disbursement date, to finance construction of La Castellana
  wind farm and to cancel short-term loans for US$ 50 million related to
  the project.

Loans and borrowings for a total of Ps. 2,891 million were received
mainly by Central PuertoÔÇÖs subsidiaries CP Achiras and CP La Castellana,
which hold the renewable projects. This amount is related to the
construction of the Achiras I and La Castellana wind farms.

Cash Flows of the 1Q 2018

Net cash provided by operating activities was Ps. 1,034 million
during 1Q2018. This amount was mainly provided by the cash flow from
the operating income from continuing operations which totaled Ps. 1,054
million. This cash flow arises from Ps. 9,609 million from the operating
income from continuing operations obtained during the 1Q2018, minus
the non-cash items included in it, which were mainly: (i) Ps. 7,959
million from the one-time CVO receivables update and interest; (ii) Ps.
373 from the discount of accounts receivables and payable, net; and
(iii) Ps. 221 million from trade receivables foreign exchange difference.

Net cash used in investing activities was Ps. 592 million in 1Q2018.
This amount was mainly explained by (i) payments that amounted to
Ps.305 million for the purchase of property, plant and equipment, for
the construction of Achiras and La Castellana wind farms and (ii) Ps.
1,146 million used in the purchase of short term financial assets, net.
This was partially offset by, (iii) Ps. 272 million from proceeds from
dividends from associates, mentioned above, and (iv) Ps. 587 million
from the proceeds of the La Plata Plant Sale.

Net cash used in financing activities was Ps. 642 million in 1Q2018.
The main financing activity during 1Q2018 was the above-mentioned loans
received by CP Achiras and CP La Castellana, for the construction of the
Achiras and La Castellana wind farms for a net amount of Ps. 689
million, after deducing the repayments of short term loans during 1Q2018.

E. Tables

Contacts

Central Puerto S.A.
Fernando Bonnet, (+54 11) 4317 5000
Chief
Financial Officer
or
Tomás Daghlian, (+54 11) 4317 5000
Investor
Relations Officer
[email protected]
www.centralpuerto.com

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