The central port is the main electricity generator in the country. However, its owners decided to broaden their horizons and they changed the company’s “corporate object”. They used to be just a power company, but now they’ll do business as well forestry, mining and petroleum.
The change was decided a few months ago in light of the characteristics of the electricity business. The generators there receive a price established by the national state, through Cammesa, the wholesale company of the electricity system. That company buys the electricity, which is then put into circulation by distributors. The latter (Edesur, Edenor) They don’t pay Camsa on time and this causes a whole chain of delays in payments that affects the profitability of companies.
“The idea was diversify a business in which you have to disperse a lot of capital (more than US$ 1,100 million in the last 5 years) to have low performance, entering others with competitive advantages and exportable products”, they describe in the company.
Cammesa and the distributors have agreed on a payment plan for unpaid debts. Generators, like central portThey were waiting for that decision. Also Pampas (by Marcelo Mindlin), which for some months has also ranked as the most important generator in the country. The measure will also reach in the generation (about to leave).
The forestry activity is part of the new research of Central Puerto. The country has competitive advantages and there are products for export. Furthermore, the carbon bond market is growing, where having large green areas represents a further advantage.
You can also get energy from reforestation. For example, you can get biomass through the chip. Wood pellets allow for this possibility, but in Central Puerto they consider this activity more unlikely in the foreseeable future.
A few weeks ago it bleached the departure of Nicolas Caputo from Sadesa, connected to the central port. Remaining shareholders include Carlos Miguens Bemberg (former owner of Quilmes), Guillermo Reca, the family Shortage (linked to Banco de Galicia) and brothers Ruete Aguirre (they had Roberts Bank).
Central Puerto had a turnover of 71,000 million dollars in the first nine months of the yearand everything indicates it’s heading for annual revenue of $100,000 million.
It appears his next acquisition will be in mining. Company executives traveled to an industry trade show in Canada, where they were scouting opportunities in Argentina. They could develop them alone or with partners.
Other connections in the energy sector, such as oil and gas, are targeted by Central Puerto. However, it is a sector that requires very high investments to enter.
Through Sadesa, Central Puerto owns 49% of Distrilec. The other 51% of that company belongs to the Italian Enel. Distrilec holds control of Edesur, held by Enel. That company has announced its intention to divest its operations in the country.
In many companies of this type, the minority shareholder usually has the preferential purchase right in case the majority shareholder sells. Central Puerta did not answer if this is the situation that can occur in Enel.
The market is also looking at Central Puerto as a possible interest in Enel Generación’s business. It would make it grow more in that segment with which it has built its business. Enel Generación’s assets could be worth $300 million, and there aren’t enough fingers to count the local companies that might try to make that purchase.
Charles Arterburn is a seasoned business journalist for News Rebeat, where he provides comprehensive coverage of the latest trends and developments in the world of finance and economics.