Q3 2022 Pampa Energia SA Earnings Call
Speaker 1: Eleanor's sale, final milestone, so we concluded that sale, and acquire the full ownership of Maria Cerrado wind farm for over 20 million dollars. So in summary, we generated $119 million of net cash flow in the quarter, achieving $685 million of cash in September .
Speaker 1: Moving on to the slide 12, this slide shows the consolidated figures of our financial position, including our affiliates at ownership, but let's just focus on the restricted group that reflects the bond perimeter.
Speaker 1: The net debt reflects the successful exchange of 2023 notes by issuing $293 million of amortizing 2026 notes and paying down $122 million in cash.
Speaker 1: Hence, we lower our international debt.
Speaker 1: In addition, taking advantage of the domestic liquidity and from the higher seasonal working capital from Camusas, we also issued a local bond for 22 billion pesos.
Speaker 1: due in 18 months and took 7 billion pesos net peso bearing loans and 7 million dollars of pre-import credit facility.
Speaker 1: So we posted a gross debt of $1.6 billion, similar to last quarter.
Speaker 1: 85% of that is dollars denominated, bearing an average interest rate of 8.3%.
Speaker 1: Net bet and leverage ratio remain similar at $927 million and 1.3 times.
Speaker 1: The average life decreases slightly to 3.7 years. As you can see, PAMPA does not face prevalent debt maturities until 2027.
Speaker 1: Well, so this concludes our presentation. Now I will turn the floor to Maggie who will poll for questions.
Speaker 2: Just like it, you'll find something in me.
Speaker 1: Thank you, Lida. The floor is now open for questions. If you have a question, please send us a 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 it to the audience. Should any participant need assistance, send us a chat message or raise your hand. Please hold while we poll for questions.
Speaker 1: Our first question comes from Maria Moschano from the company Abaca. Her first question is regarding the PPAs. If the company has a plan to replace the mature PPAs, another question is regarding the lack of gas or power generation. Is it still in place, the lack of gas for generation? And the delays on Kamesa payment.
Speaker 3: Hi, good morning everybody. Thank you for joining. Thank you Maria for your question. Regarding the...
Speaker 3: replacement of the PPF we've been working
Speaker 3: the last two years on the closing of the combined cycle of
Speaker 3: Name your turn to begin.
Speaker 3: Together with WAGPF, that is an expansion of 280 megawatts that will begin hopefully the PPA by year –?u.
Speaker 3: That will be an addition of an important PPA for PAMPA. And also, we've been working this year on the expansion of PEPE 3, as Glida has mentioned. So, those are another 80 megawatts of wind farm.
Speaker 3: that will be online. I think even sooner than what Lida has just announced, I think...
Speaker 3: I think even sooner than what Lida has just announced, I think
Speaker 3: We may have.
Speaker 3: a small portion of it even before you...
Speaker 3: year-end and the rest within the first quarter of next year.
Speaker 3: The other issue was regarding lack of gas, right?
Speaker 3: of gas, right?
Speaker 3: you know this year has been a
Speaker 3: peculiar in terms of pricing.
Speaker 3: for the first time in...
Speaker 3: I think in history, liquids, meaning diesel oil, was cheaper than imported LNG.
Speaker 3: So Kamesha
Speaker 3: try to maximize the use of liquid fuels, diesel oil and fuel oil, vis-a-vis the use of imported natural gas. To minimize the use of imported natural gas in listen.
Speaker 3: Obviously, that was during the winter season.
Speaker 3: It won't happen now in spring and during the summer and next autumn, but on the winter of 2023, we are envisioning a similar situation. That is what the futures of LNG are telling us. More or less in the same range that they were this winter, even a little bit more expensive. So, we think that next year, Tamesa will also try to maximize the use of liquid fuels.
Speaker 3: Vis-a-vis.
Speaker 3: vis-a-vis imported LNG.
Speaker 3: And the last question was regarding the
Speaker 3: delays of Kamesha.
Speaker 3: I don't have the exact number probably you can put it on the screen.
Speaker 3: Okay, so the last three months, C explanations and report score that we had this in the past and
Speaker 3: payment regularity and currently the last
Speaker 3: The last payment was with a 35.
Speaker 3: days of delay vis-a-vis the contractual obligation.
Speaker 4: So,
Speaker 3: has been improving. We hope that...
Speaker 3: The worst is over. The worst is during the winter that Camisa has to spend a lot of
Speaker 3: winter that Tamesa has to spend a lot of funds.
Speaker 3: in importing fuels.
Speaker 3: So I think that the spring and summer months are easier in terms of funding for CAMESA. So we should.
Speaker 3: collect with less delays. At least that is what we're expecting.
Speaker 1: Thank you, Ruth. Our second question comes from Frank McGahn of Bank of America. He has two questions. The first one is, what are your current expectations for gas production over the next three years?
Speaker 3: Frank.
Speaker 3: As Leah mentioned, we have been...
Speaker 3: investing
Speaker 3: in order to increase our production capacity, especially at El Mangrove show area.
Speaker 3: and we are just finishing a new
Speaker 4: gas
Speaker 3: plant treatment.
Speaker 3: which will allow us to increase production going forward.
Speaker 4: But...
Speaker 3: how much it will depend on the auction that we are expecting anytime.
Speaker 4: and
Speaker 3: for the fulfillment of the...
Speaker 3: a new pipeline that is expecting to be
Speaker 3: available online next winter.
Speaker 3: So once that bidding process is over, we will have more clarity as to
Speaker 3: our gas production moving forward in the next two years.
Speaker 1: Thank you, Guz. The second question of Frank is about, could you please remind us of the timing for the ending and startup of PPA through 2023 and 2024?
Speaker 3: progress and so far there are a lot of hurdles but so far we haven't identified yet anything that make us pessimistic about not being able to reach the end of the day.
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