Q2 2022 Pampa Energia SA Earnings Call
both risks, uncertainties, and assumptions because they are related to future events that may or may not occur in the future. Investors should understand that general economic and industry conditions and other operating factors could also affect the future results of Pampana-Ricilla and could cause results to differ materially from those expressed in such forward-looking statements.
Now I will turn the video conference over to Lida Wang, our Investment Relations and Sustainability Officer of Pompa Narsia. Please go ahead.
Bye.
Thank you Maggie and everyone.
Thank you, Marty, and everyone.
Thank you.
Thank you, Maria and everyone.
Thank you.
Thank you.
All right.
it again.
Thank you, Mayu and Juan, for joining our conference call. It's been a great quarter, but in the interest of time, I will make it short and sweet, so we have plenty of time for Q&A with our CEO , Ustadh Mariani.
Thank you.
Yeah, you're listening.
Gustavo Mariana is here, our CFO Nicolas Nino is here and they are waiting for you with the Q&A.
So let's start with the quarters figures.
Revenues increased 28 percent year on year to $587 million driven by rising gas output.
commodity prices, E2V energy at blue cells, and higher legacy energy and regulated price.
However...
Lower income from Loma, Maragán and Piquirenda offset this in cases because its PPA expired. For more information about thisCheckedsignal.dash main.com
As a result,
Around 85% of our sales were dollar linked.
The adjusted EVDA amounted to $253 million, 6% up.
year-on-year and 13% up quarter-on-quarter explained by the same reasons detailed before and better pescant margins offset by increased costs on maintenance and contractors from intense CMP activity and higher pesto leaves expenses because inflation is outpacing the valuation
Quarter-on-quarter, seasonality explains the boost in the EVDA.
As you can see on the right below, oil and gas let the consolidated adjusted EDA for the first time in a long time thanks to our gas business taking 59%.
In Q2 it was 49 percent up year on year and 30 percent up quarter on quarter. This is mainly due to the growing plant gas commitment and power expansions at the PEPFRE and Barragán. In Q3 it was 49 percent up year on year and 30 percent up quarter on quarter.
Moving on to power generation as seen on slide four.
We posted an NVEPA of $99 million in Q2.
This is 18 percent down year on year and quarter on quarter mainly due to PPA maturities we mentioned before and higher local currency expenses.
compensated by thermal, better thermal, P to the margin, and spot energy cells despite the spatial depreciation.
The outstanding operating performance also contributed to the EVPA.
Q2 generation was up 18 percent year on year, surpassing by far the national grid. That only achieved one percent aggregated growth. Because of the peak season that began in May, our thermal units were highly demanded. We combined cycles dispatching at full capacity and dual units firing with liquid fuels.
The power generation business relies on take-or-pay, capacity-pay. So availability is what matters the most.
In Q2, we reach an outstanding rate of almost 98% with minor outages in Piedra Uena.
In contrast, we recorded roughly 96% year-on-year last year.
due to hueves and Tenerbas partial saltages. So again, palm pass availability rate was way above the system average of 77%.
Regarding our expansion at Ensenada Aragán, the cooling to CCGT is advancing, now more than 80% done. We are preparing the facilities to perform the steam blow this month and running the pre-commissioning of the water treatment plant and the cooling tower.
More than 450 people are working daily on this project to achieve the CO2. This is forecasted by the end of 2020.
Moving to Pepe 3, wind farm expansion, the project is beyond half a way the band. We continue with the city works working on the wind turbine basis. We have already received the anchor cages and the wind turbine components are arriving at the port of Ayalanga this month.
The estimated COD is split in two stages, the first 50 MW by February 2023 and the remaining 31 MW by May 2023.
Now.
Moving to B in slide 7.
our gas production with a new all-time high record again.
recording 11.2 million feet meters per day in June . Actually, currently, this is the level.
that we are producing.
The ramp up is mainly explained by plant gas last tender which added two million kilometers per day of deliveries in May. In addition, the exports to Chile even during the peak season contributed to the production hike all made on a spot basis and higher sales to the industrial segment.
Therefore, during Q2 our gas production outperformed by growing 38 percent year-on-year and 14 percent quarter-on-quarter.
averaging 10.2 million km per day in the quarter, and outpacing nationwide growth that only increased by 13%.
We drilled 12 gas wells and completed 17, all tied and mostly at the Mangroves of Locke where 72% of our production in the quarter came from.
Last May we added 2.5 million km per day of evacuation and treatment capacity at the Mangrove Show.
By the fourth quarter of this year, the total capacity of this block will be 14 million kilometers per day.
more than double last year's capacity.
Fiona Uken and Ciara Chata also contributed to the growing output but a
Tygas is our main production source, but we expect to increase our shale gas share further soon since we began drilling tourism wells at Fierraciata this month as a part of a new investment plan.
This plan we plan to complete 14 horizontal wells targeting to Baca Muerta.
formation before June 2023.
Briefly commenting on the NP business figures as seen on slide 8, we posted an Adjustment BDA of $102 million.
Thank you too.
39 percent up year on year and almost double quarter on quarter. Explained by the gas performance that we mentioned before and higher realized oil prices offset by increased costs related to growing activity and export expenses.
Our total production average
65,000 BOE per day, of which 92% is gas.
Our listing costs grew by 52% year on year and 35% quarter on quarter. However...
Efficiency-wise, the lifted cost increased just 20% year-on-year and 5% quarter-on-quarter, recording $6.2 per year.
So, my name is Kool Oil, who presented this webinar.
19% of the second revenue in the quarter.
revenue sold with similar year-on-year.
but 11% down, quarter over quarter.
being 4.7 thousand miles per day. Through the quarter local sales increase.
but export reduced their pace to resume it last month to last.
Realized price was almost $73 per barrel, primarily due to the brand.
and the Guella Rice.
The message price.
Back to gas, our average sale price of the quarter was $4.4 million per million to you. This is 14% up in a year and 25% up quarter on quarter.
driven by export prices and local gas.
prices this is due to the seasonal gas demand.
As we are right now in the peak season, our Q sales breakdown is skewed to retail.
because they have priority in winter under the plain gas.
in winter under the plain gas women
or despite selling under spot.
We aim to keep up with this production level of 11 million km per day even after the winter ends.
So we are working to place the access output.
A few days ago we were clear by the Energy Secretary as to export.
Under Take Our Pay, basis 1.5 million seniors per day to Chile through the office.
Moving to petrochemicals, it delivers another outstanding adjustivity of $19 million in Q2, higher than last year's $60 million. This is primarily contributed by a broader margin.
risk-fed and volume of reforming products.
plus the increasing demand for polystyrene partially upset by higher exploration rates due to the reduced dramatic rise on antis cholesterol lowIES curriculum and mental
quarter on quarter, the ABDA has more than tripled. This is driven by better
sales volume was 19% up year on year mainly due to the demand growth for obtained basis, polystyrene and nastas.
In Q2, 41% of the total cells were exports.
Regarding cash flow, as seen on slide 10, we recorded a free cash flow outflow of $62 million. This is mainly due to the working capital impacted by the seasonal billing, remember we are in winter, and higher pin delays from Canissa.
In addition, because of the gas
Commitment deliveries will ramp up our EMP CAPEX significantly.
by 55% year on year plus the PPE-free renewal expansion investment.
We recorded less of that service due to lower stock compared to last year. In addition, we incurred a minor death and collected NNR's self-final installment.
In summary, we reduced $41 million of net cash in the quarter, achieving $566 million of cash by the end of the quarter.
Moving on to slide 11, this slide shows consolidated figures.
including our affiliated ownership, but let's focus on the restricted group that reflects the BOMB perimeter.
We posted a growth stat of
$1.5 million, billion dollars. Similar to the last quarter, this is 97% dollars denominated, bearing an interest rate average of 7.8%. The average life decreased slightly to 3.9 million years.
During the quarter, we added minor pestalones.
Though net debt slightly increased to $902 million due to the cash out we mentioned before, the net leverage ratio remains similar 1.3 times.
Regarding our upcoming maturities, we tapped our 2020 free notes last June and carried out an exchange offer that's successfully settled this week.
Our goal was to strengthen our debt profile and preserve a solid gas cash position to move forward with an intense investment plan in our core businesses, especially in gas production.
Thanks to our boneholder support, we successfully exchanged $407 million out of the 500 million face value.
with 48% choosing the cash and notes proposal and 52% picking the new note compensation.
Thus, we reduce debt by paying $122 million in cash and extended principal by issuing $293 million of new 2026 notes, amortizing annually.
from December 2024 to 2026 with a fixed interest rate of 9.5%.
In addition, we issued a local loan for 28 billion pesos due in 18 months and also took 7 billion net pesos.
bearing
Thank you.
So, as you can see, in the new debt profile after the exchange, until 2027, Tampa does not face relevance that matures.
So.
This concludes our presentation. I will turn now the work to Margarita who will open the floor for questions.
Thank you.
Thank you, Lita. The floor is now open for questions. If you have a question, please send us through Zoom chat. We will read and answer them in the order received. Also, please make sure your name and company are correctly displayed so that we can introduce you to the audience. Please lower your hand once your question is answered. Should any of our digit names need a visa, send us a chat message or raise your hand.
Please call while we ask questions.
Thank you.
So here we have Gustavo Mariani, our CEO , and Lida Wang in the same camera. So our first question comes from Frank McGahn of Bank of America. He has three questions. We will start with the first one. The first one is what are the expectations now for oil and gas output for pump-up sites over the next two, three years with a new transportation capacity?
Sorry, we had to change the volume with my iPad so I had to move to leaders.
position. Hi, good morning and thank you Frank for the question.
Is it working now?
I would a make look a.
Regarding oil, currently we don't have any plan to significantly increase production in any way. Although we are analyzing all the alternatives that we have, we are discussing with our partners. The indigimens are very different than the ingredients used here and are not for that reason.
Currently, we don't have any land to significantly increase production in any way. Although we are analyzing all the alternatives that we have, we are discussing with our partners or partners in our routine. And I will add the purpose 54 is to say that we also signed the contract with our partners
with the partner in Rincón de Aranda.
And
Macamorta play in oil that we operate in order to
start drilling in that area. But still nothing confirmed on that front yet.
In terms of natural gas, our...
Our aim is to continue growing. We are currently at full capacity of all our
Yes.
treatment plans.
We currently reach, as Lida mentioned, a record of 11.2 cubic meters of natural gas per day of production, which we hope to maintain throughout the summer. Thanks to
export to Chile in the summertime. And in order to increase that, to increase the production, we are...
a few months away of finishing a new
gas plant treatment in El Mangrucho for another 5 billion cubic meters of natural gas.
So we hope by
next winter of 2023 be able to use all that capacity.
That will depend.
on the outcome of... that will depend on basically on the market, on the outcome of any...
what we are expecting that is a new auction in the...
So yeah.
So I haven't linked there for how long? No, no, no, no.
Audience member
So
I said, you know, the.
The contracts have been signed in order to start building the new pipeline.
to increase evacuation capacity from the Neuquina Basin.
I'm
If everything goes fine, and as we expect it will go, by mid of next winter there will be an increase of 11 million cubic meters of natural gas of the equation capacity out of the volcano basin.
So, we are expecting that the Secretary of Energy will soon announce.
a new plant gas in order to
to fulfill this new pipeline with gas and depending on how successful we are on that option.
will be the
plans for next year.
Okay, so I think we covered that.
Thank you....
Thank you, Gustavo. The second question is about power generation. What planned maintenance is scheduled over the next several quarters in your power plant?
So the next quarter Q3 we usually do at the end of the quarter.
between September and October . Maintenance is in our combined cycles. This is the Semloma de la Lata and In
the number two combined cycle, the original one. And we have some containers with distinct turbines of Tierra Buena and Inguénes. And we have some containers with distinct turbines for Tierra Buena and Inguénes.
Thank you, Lida. And the last question I have is also about power generation. What additional PPA changes are expected in terms of ending and starting of contracts through the rest of 2022 and in 2023 and 2024?
You have second.
Are you seeing me now?
Okay.
Regarding PPAs, as you know we are working together with YPF.
And as I show the picture, I'm finishing the closing of the cycle of Ensenada de Batagán. That is, that without a new steam turbine of 280 megawatts of capacity with a 10-year PPA.
As Lida mentioned, we expect this to finish by the end of 2021.
the works on the COD to be at the end of
the fourth quarter by the end of the year.
And so we are expecting the impact of that PPA fully in 2023.
Also,
regarding the expansion of PEPE3 where we will be adding 80 megawatts of
Yeah, well, windmills open.
Thank you.
a minute before the
This conference starts with a picture of
the unloading of the windmills for that expansion. So everything is on track there.
In a few weeks we will begin.
putting the windmills on the site. So by February of next year the first 50 megawatts should be online and two months later the other 30 megawatts. So that is, so in 2023.
You have the 50 percent of the addition of Ensenada Barragán. This is the average of the 80 megawatts of the PPA plus the 80 megawatts of the PPA.
of the new expand of the new web farm.
And regarding PPAs that will come to an end.
From now until the end of 2026, we don't have any maturities.
So 2026 and 2027 will be the next maturity in PPAs.
Thank you.
Thank you, Gustavo. Our next question comes from Matias Castanilla from BCP Securities. He also has three questions. The first one is regarding the new pipeline. Tampa is recording record high of production of gas. How much does your production growth depend on the new gas pipeline?
It fully depends on the new pipeline because all our production in natural gas is concentrated in the
its evacuation capacity.
towards the internal market.
and also towards Chile during the summer we are exporting
as much as we can.
Until there is.
Until this new pipeline is online, which we expect to happen by midwinter of next year.
There is no way to increase production other than gaining a little bit of market share within the basing which...
is unlikely to happen.
Thank you Gustavo. The second question of Matias is regarding the petrochemical business. Petrochemical recorded another exceptional edit in the quarter. In the global market we see that in July and August there are margins decreasing. So what is your expectation regarding your business for the remaining period of a year?
You're totally right that the petrochemical business is having a terrific year.
probably it will be a record year again. As you know our petrochemical business has several basically four segments and
And as you correctly said, some of those segments are –
slowing down, but others remain with very good health.
As we have disability, the third quarter, we are optimistic that it will be a very good quarter.
We have less visibility, less capacity to hedge prices for...
for longer term. So fourth quarter it's more uncertain but everything looks fine. So I think we are on track on having a very good year because besides some slow down in some of the segments. We are going to now move to and after meeting with the vice president for Mobility and
Thank you, Sawa. And the last question about Matias is regarding the net debt. You increased slightly the net debt by $50 million compared to March. We would like to know what are the main reasons.
Hi Mattias, so the increase in net debt is something in the circumstances and it can be explained by many different reasons. The first one is working capital.
We have been experiencing a slight delay in payments from Cameza during the last few months.
mostly because of seasonal reading.
And secondly, because during June and July we had some stationary high CAPEX expenditures and some extraordinary expenses regarding the expansion of PPE3 wind farm. And lastly, because on June we faced some losses on some financial investments partially upsetting in July .
But we don't expect this increase in net debt to
same over time but obviously this will depend on what happens with working capital and Kamesa payment delays in the future.
Thank you, Nico. Our next question comes from Alejandra Andrade of JP Morgan. She has four questions. We'll start with the first one. Could you comment on the build-up of a compound receivable and the day of collection from Cepanesa?
So, as I just said, in the last few months, due to seasonal wind, the pavement, the layout of Camasa have been fluctuating and deteriorating, especially during the last few months.
As I said in the last few months, due to seasonal building, the payments delay of Camenza have been fluctuating and deteriorating, especially during the last weeks.
reaching almost 90 days of delay approximately, when last year we were on an average of 70 days.
But we hope the situation
revert in the upcoming month.
Thank you, Nico. So, Alejandra's second question is regarding what is the outlook about your production and capex level.
Well.
Right now, as I said before, the idea is to keep up with the production that we are – in the old town, 11 million cubic meters per day. This is beyond the off-peak season. If we can place the cells that we are very confident on, we will.
CAPEX for this year in EMP because we ramp up heavily, it's estimated at around 350 million dollars total of the year.
but next year we expect to go down to maintenance.
It's around $200-250 million. Then we have power generation. We are close to 19 terawatts of energy this year generated from all our units that we operate.
This is quite an increase compared to last year and this is placing us stronger in the grid.
And CapEx for this year is $140 million. This is what we expect to diverse. Mainly this is 50 from maintenance and the rest 90 it's coming from PEPE free. The expansion that we're doing next year, the diversions left, it's very little.
Thank you, Leah. And Alejandra's third question is regarding the 2023 notes that is remaining. It is about $93 million roughly and maturing in July 2023. What's going to happen with that?
So.
The current regulation remains the same. Last year we understand that we will have access.
Hey
As participation in the exchange was of more than 80%, the amount of
of holdouts for 2023 is just $93 million that we think is a very reasonable number considering pump as cash flow generation capacities.
So, in the upcoming month we will analyse the alternatives, taking into account the company CAPEX plans and also the regulation in place at that time.
Thank you, Nico. And Alejandra's last question is about the inflow of asset sales that we can see in the balance sheet.
I don't know.
So this is mainly because during the last week of June and the first week of July we collected the last $40 million of the sale of the 51 percent of the north. And with this payment we complete the $100 million and we do not have anything else to collect from the buyers.
Thank you, Nico. And our next question comes from Florencia Masiorda from the company NetLife. So, the question is regarding the technical problem we have in one of the gas turbines of Loma y la Lata. What is your expectation regarding the insurance company? How much they should cover the air regarding this technical problem?
.
The insurance company should cover basically what we have is
in terms of business interruption.
beyond 60 days which we hope...
It will not take that long and the machine will be...
will be ready before.
they should cover
deductible, between the deductible and the self-insurance retention that we have, it's about $9 million.
So they should cover anything that goes beyond that number. But the reality is that we are discussing with the supplier because we understand that they should...
they should cover
should cover
the damage that we suffer. And we are optimistic on the outcome of that negotiation. We had these kinds of issues in the past and they have responded according to their responsibilities. So......
We hope not to need to claim anything to the insurance company and to solve the issue with the supplier. That's our expectation at this moment.
Thank you, Gustavo. Florencia added one more question. It is about the new official appointment in the Energy Secretary. What is PAMPA's view on this change?
Regarding the change in the secretary of energy, some of the new appointments are officials that have been working with the government in other...
in other positions which we know them very well and we have a very excellent dialogue and relationship.
with the new appointed secretary of NRC.
Although we know her, we have a asset in the province where she is coming from, we have less knowledge, but we...
We are very optimistic.
about her capabilities for the position. So far, the announcement has been excellent towards the sector, both the tariffs, the reduction in subsidies. It's a significant step forward, very, very important.
Among the other announcements regarding the, that were made yesterday by the Minister of Economy.
regarding Baca Muerta
And the incentives to increase production are excellent news for the sector. So although Argentina, as you well know, is going through tough times in terms of its economic system, we often hear that some economists refuse to give Time to the inhuman
of the macro situation.
What?
What is related to our sector, we are very optimistic because they are doing
They are moving in the right direction of solving issues so that the energy sector becomes
and important help to the macroeconomic situation.
Thank you, Douglas. Our next question comes from Paula La Greca from TPCG. How much incremental revenue will represent exports to Chile in Q3 and 4 of this year?
We are about to be granted a 1.5 million
firm export permit to Chile.
Export, export permits are
Almost all the...
All the paperwork in the Secretary of Energy is almost done. So in the next couple of weeks it should be published and we are expecting to be granted 1.5 million cubic meters per day of – AUDIO substantial loss
Those exports will be done close to $8 per million of BTU.
An excellent prize.
bright.
Yes?
Assuming
the difference between the local price during the summertime and the export price.
being something about
So the incremental revenue should be around 20-25 million dollars because of the export contract.
Thank you, Bruce. Our next question comes from Lucas Galvi from Portfolio Personale. He has two questions. The first one is related to the gas export as well, but during off-peak season. How much gas do you think you'll be able to export during the off-peak season in the coming months? As Gustavo mentioned, we are having the 1.5 million cubic years.
No matter what.
coper.
All right
We apologize. We are having some inconvenience with the Internet quality. Please give us a few minutes until we settle this situation, please.
So the first question of Lucas-Caldi was related to the gas export but during the Arctic season as Gustavo mentioned we are having the paperwork ready to have the export permit of 1.5 million cubic meters per day since October until May next year on a take or pay basis. Can you give what would be the expected pricing of those exports?
Okay, I think I just answered that.
What we are expecting to expect during the summer, beginning October 1st until the end of April , is in the firm of $1.5 million. Hopefully, on a
Not on a firm basis, but we expect to...
export around half a million cubic meters of natural gas per day more so a total of 2 million.
And the price for the firm gas will be close to $8 per million of BTU.
For the other half million, we are still negotiating with our counterparty in Chile.
Thank you, Lucas. And Lucas, next question. This is the final question of Lucas. Is regarding the next winter. Are you expecting to further increase natural gas production next winter in case the new pipeline is not ready by that time? Could you export to Chile that additional production as you did this winter?
As I said before on the question, by next winter we will have –
the possibility to increase production to 16, 16 and a half or 16 or 17 million cubic meters of net worth per day. Thanks to our investment in infrastructure that will be ready by that time. Whether we reach that level of production or not, it will depend on the visibility we have or capacity to.
to increase production to 16 million cubic meters per day thanks to our investment in infrastructure that will be ready by that time. Whether we reach that level of production or not it will depend on the visibility we have on capacity to.
to save our production through the new pipeline that we expect it will be ready by mid of next winter. And to –Line 1 should be
Export gas to Chile.
During the winter, because of transportation restrictions, during the summer we can export to Chile around 9 million to 2 meters of natural gas per day from the Neuquima basin.
I'm referring. During the winter, we can only export less than five to Chile because of transportation restriction. So being for the long run this is crustgaseous.
Again, we will have the capacity to grow production, but we don't have yet visibility on the benefit of Doug's presentation on our new productsthey also have open solution data.
our market share both in the
in the export market or in the local market with the expansion of the new packet.
So once we have more clarity on that we will be able to fine-tune
our increase in production.
Thank you, Bruce. Our next question comes from Costas Papalias from Puente. He has two questions. The first question is what percentage of your revenues have to stay as a counterpart? On the same line, what are the average collection days and what will be the net effect of a steep overnight devaluation on pump-up finance given the amount of unpaid invoices?
Thank you. Thank you.
So, as I said before, C reviewed their blogs
reaching approximately 90 days.
90 days.
And obviously any discrete increase in effects will affect our receivers in pesos, right?
The impact on this is difficult to estimate exactly because it will depend on many factors at the time of that supposed evaluation as the amount of residuals at that time and the days of delay. 2
But just to give you an idea, until the day 42 of the day, the receiver is adjusted by FX and after the day 42 is adjusted by an interest rate in pesos, today it is near to 70 percent. It is near to 80 percent. Okay.
Thank you, Nicole. The second question of Costa's is regarding the EMP business. Are there any logistic or macro restrictions affecting your topics' executions?
Rafael
Especially you
The questions regarding problems with the CapEx note, we are not touching.
We have not seen any problems.
And even yesterday, the Ministry of Economy has announced like a green channel for, in custom for, for Bata Muerta. So the government in
Understand perfectly.
that energy will be part of the solutions to the macroeconomic problems. And so they're trying to smooth all the...
B
baby VS Wooded
industry suffers in order to move farther to increase production. So we're having a start for any programs.
Yes, we are. There are some bottlenecks like for example in
You present the machine
Fracking equipment, lack of fracking equipment in the market, that is a bottleneck, so we need to import new sets.
A.
in order to be able to increase the rhythm of production and working.
the rhythm of production and voting.
talking about some industries and
that the government understands that we need to remove any problems. So, yeah, we're not having any problem with it.
In antibodies that were planned to hold.
in implementing our planned modules.
Thank you, Hugo. Our next question comes from Guilherme Levy from Morgan Stanley . He has two questions, one for EMP and another one regarding working capital. The first one is in EMP, what is the planning capex for the coming quarters? What is the company doing to ensure that investment to be executed in this high inflation environment both in Argentina and in the global industry?
and if there is any impact regarding import restrictions in Argentina for the short-term investment.
Anyway...
It's mostly covered by.
I'll be all right with me, okay.
So basically we can say again the outlook for the year and capex for EMP is around 350 million dollars.
And then we have an ad 40 from Power Generation. This is the outlook for this year.
not probably going to happen again next year because this year it's loaded with one-offs expansionary capex in the case of the MP around 200 million dollars of expansionary capex and in the case of power generation it's 90 out of 140 restrictions and imports I think just cover recently and working capital we just cover it but by our CFO Nico
Thank you, Leah. So we covered the second question of Guilherme also regarding working capital. We'll move on with the question of Rafael Nagano of Credit Suisse. He has three questions. The first one is what are the commercialization plans for the Loma y la Latas steam turbine and Tiki Renda given the expiration of their PPA?
Hi Rafa, the thing is that when the PPAs mature, they migrate to the sport market. That's how it works.
This is for the camesa PPA. Now for the matter and I have blue state they constantly roll.
The second question of Rafael is, is there any expectation for new gas supply options? If so, when should it come and how big it should be?
The first
This new pipeline will be shipping.
We hope that your optimistic will be online by mid of next winter.
with at, on the first stage, 11 million cubic meters of natural air.
On the first stage, 11 million cubic meters of material, of natural gas capacity.
That is without compression. Then on the second stage the compression plants will be ready and that capacity will double. So it will go from 11 to 22 million then more alcoholism in the Cisation of?cD Megane gelinase.
because of delays in the supply of the compression plant that is not going to be ready for winter of 2020.
The wind current is 23, just a pipeline without compression.
11.2 meters per day.
by summer in 2023-24.
another 11 million once the compression capacity is added to the pipeline.
So the first option will be 11 million and
what the direction should be around.
because the industry needs to...
The sooner that it's been announced, the better for the industry and for the government in terms of the price that it has.
It's going to be awesome.
But what percentage of those 11 million are on earth?
EE around so contracted
I mean, we did.
You're wrong. Okay.
year-on and how much it will be just for winter. We're seeing something like 70% of the million will be.
around the man and there will be a small piece.
especially in chemical use, pre-pandemic chemicals.
then all those that are medium-long, Bolivia continues to evolve.
to provide led cast during the summer. Thank you.
Thank you. Our last question.
Our last question from Rafael from Credit Suisse is about should we expect any additional adjustment to legacy capacity remuneration?
The question that we were discussing...
We are discussing with the authorities.
We have been given...
Thank you.
since February of last year, legacycapon50
basically two adjustments, one of 30% that will be in fact in February of this year and another 10% in June of this year.
That is since February 2021.
implications that's been way above those figures.
about those figures.
are aware of it.
We are finally discussing with the authorities. We don't have anything confirmed yet, and we are optimistic that in the coming months we will have a lot.
and we just want to compensate.
the cost inflation we have.
Thank you, Guus. We will move on with the next question. He's from Rodrío Nístor from AR Partners. He has seven questions, but most of them were already answered. So we will reply two questions. The first question is, do you expect a reduction in payment base from Kamesa as consumers pay larger portion of energy cost?
Thank you.
Thank you.
My first question is yes, definitely it's a good use and we will hope that the system will require less subsidy from the pressure. And then we will help to ensure that physical Lesson andThis is doable power. But I just want toaders out the concerns that doable fixed cost.
So
And also what is important about Cam and energy, we are very heavy in the winter and we are almost
over that system.
So, we expect the connection from CAMESA because of this seasonality and because of what you have mentioned.
So we expect the connection from CAMESA because of this seasonality and because of what you have mentioned that the increase.
increasing connections of MSR.
to the distribution company because of the error increase I think those are two factors
But in fact, most of the things we do in Canada, so we should expect that.
Let's be optimistic and that will be the case.
Thank you, Bruce. And the second question of Rodrigo is how much can you grow production if additional missing capacity becomes available?
Any other?
In three, I think we answered better.
I'm going to read it again. We currently have a capacity to produce 11.3 meters of gas per day. We are currently producing...
We are about to finish a new guest.
Any questions or comments?
We take the mangrove from 8.5 million – that is currently our current production in mangrove – to 13.5 million. So, we are adding a total of 5 million new production capacity. We need to drill and complete the wells in order to – so, by September or October , to get further capacity of
new capacity will be ready, but it will not have
if we will be ready, but we will not have... and we will not have...
new wealth in connection to...
to feel better.
We will have the field, the West ready, starting.
in the second quarter of next year.
and whether we fully fill that.
whether we fully fill that out. OK, thank you for joining us, it was great to talk to you.
So before it will depend on
the demand that we see.
Both are only.
domestic market and from
thanks
Thank you, Luis. We have been covering most of the questions. There were some few questions that couldn't be answered because we are running out of the time. We try to respect the one-hour video conference. Anyway, we will contact directly to the person who answered the question.
So this concludes the question and answer section. I'll turn to Lita for final remarks. I would say it was a great quarter. If there's any topic or any question that we didn't answer, please contact us. We will reach out with an answer question. This is not seriously, we have a lot of questions. That keeps us very happy because we feel like...
There's a lot of activity. Any questions you may have, you can reach us out. Margarita and I will always feel available for you. Who would like to close?
Any questions you may have, you can reach us out. Margarita and I will always feel available for you. Who's, do you like to close? Imiko
Thank you very much for participating. We are very optimistic.
going forward on the purpose of the company.
Nico and Lida said this past week have been very important for our company being able to refine our company.
our 2023 maturity leave us with the capacity
to focus exclusively on growing and on growing production. So it's very important to...
and to move forward.
to reduce our in-depthness and move forward so that it's more curative.
And also the news about the new pipeline finally.
moving forward and all the measures that have been announced by the
Minister, the new Minister of Energy and Economy, are excellent news for the company. We are very optimistic and we will be working very hard.
of energy and economy are excellent news for the company. So we are very optimistic and we will be working very hard.
to fulfill our expectations.
Thank you very much for joining. Thank you, Ruth. This concludes today's presentation. Thank you for joining. You may disconnect at this time. Goodbye.