Q2 2023 Pampa Energía SA Earnings Call

Welcome everyone to pump I know she has second quarter 2020 save yourself video conference. We inform you that this event is being recorded all participants will be in listen only mode. During the presentation. After the company's remarks, there will be a Q&A session questions can only be submitted in writing so soon.

Should any participant need assistance, please send us a check message.

Before proceeding please read the disclaimer on the second page of our presentation. Let me mention that forward looking statements are based on comp and ex gas management beliefs and assumptions and information currently available to the company. They involve risks uncertainties and assumptions because they are related to future events that may or may not occur in that.

First should understand that general economic and industry conditions and other operating factors could also affect the future results of Pampa Energia and could cause results to differ materially from those expressed in such forward looking statements now ill turn the videoconference.

Yeah.

Over to Lida, Wang Investor Relations and sustainability officer of Pampa Energia. Please go ahead.

Okay.

Hi, good morning, everybody. Thank you Maggie.

Hello, everyone and thank you for joining our conference call I would try to make it short and keep some parks are explained in the earnings release or we can have plenty of time for Q&A with our CEO . Tom Avionic was here when he called US was joining us.

I would ask you to read our head of <unk> is here to answer many questions that you might have.

And of course, our view that our corporate finance director.

So let's start with the quarter's figures and go straight to the adjusted EBITDA, which amounted to $222 million in Q2.

13% less year on year Mark by soft.

Mr demand due to the mild winter.

Our commodity prices in peso depreciation effective spot unregulated businesses, partially upset by the renewable biogas.

PPA plus higher gas export sales, however, the 8% rise quarter on quarter is explained by the winter season, and Ppas. It has four nodes in that 80%, 87% of the quarter's EBITDA was dollar link and the share between power and.

<unk> is almost even.

Though oil and gas is leaning into the pie things to pet Chem and T. G I.

Capex is in Q2 was 59% higher.

Year on year, mainly because of the P. P. Six wind farm construction, plus E&P shale drilling and completion activity offset by the commissioning of Pea before.

That before.

Moving on to the power generation as seen on slide four we posted an adjusted EBITDA of $88 million in Q2, similar year on year, but down 9% quarter on quarter.

Mainly explained by the impact of basically depreciation over spot prices.

Certain thermal outages and lower power demand.

By the addition of wind farms and Paragon New P. P E plus.

Plus the special prices for legacy <unk>.

Q2 dispatch rose, 17% year on year led by Barbara <unk> and the wind farms.

Offset by less despite choppy due to the fact that lower of National tower demand.

And the program my opinions.

Sure.

Take or pay capacity payments, especially for Ppas explained.

Most of the EBITDA it is driven by availability and in Q2, we reach 95% below last year's almost 98%.

All the gist.

Womens centinela restored during the quarter.

The commissioning tests.

In Maryland, Cccp firing diesel.

However, it was way above.

The Greek availability of 74%.

Moving on to expansions, we commissioned the last wind turbines.

Before in mid June therefore, a tool of bring capacity of 81 megawatts contributes to the power grid, having invested more than $120 million. This is 5% cheaper than the budget.

Regarding the Pip is fix the project, it's roughly 17% events we are working.

Facilities and have started the civil works for the high voltage substation.

We have already received the cage as well as the remind me remaining wind turbine components are being loaded in China.

Arriving here with them in two months.

The estimated.

For the first for the first phase of 95 megawatts. This in next to free up next year.

The second phase of 45 male what's next year's Q4.

So keep in mind that pit.

Expansions are also on the B to B P. P eights.

Last month actually and our feeling is that the secretary of energy launch, our new tender wattup up to free Ciego, what's a thermal capacity.

<unk> seen only locations that the demand is considered critical.

The submission is due at the end of this month and.

The schedule of worries in October and we are in a license to participate here.

On slide six our E&P business posted an adjusted EBITDA of $97 million. This quarter, just 4% down year on year, the oil and gas exports most contributed to the quarter.

There's like a soft we feel gassy man because with the mild winter.

However quarter on quarter EBITDA was up 58%, mainly driven by God for smelly.

Our total lifting cost grew by 50% year on year and 7% quarter on quarter. This is explained by the increased treatment costs.

Efficiency wise, however, the productivity from new wells, possibly impact the lifting cost per Boe.

Which grew at a slower pace of 11%.

Year on year, and 9% down quarter over quarter recording $6 $5 per Boe.

Okay.

In Q2, our total production averaged above 70 67000 Boe per day. This is 4% higher than last year. So many crude oil represented a prison.

In which 17% of the segment's revenue.

Mostly because of increased exports of set by the drop linked with Brent.

I'm getting a realized price of $65 per barrel.

This outlook breakdown shall change at the end of next year.

Following the agreement with total to acquire the 45% remaining stake at three <unk>.

Black oil block in back on one of them.

This marks the beginning of our shallow development aiming to keep exploiting the full potential of Buck on water.

We want to replicate our success story.

All owner and appraise and even among crucial right that that Blogish RNG is one of the best producing blocks.

In consideration of frequently I don't know, where we swap our Mario <unk> wind farm.

This move does not prevent us from developing more renewable energy, which is the case with the recently commissioned before and with the current construction undergoing any 56.

Okay.

About gas our sales in Q2 grew by 4% yearly averaging $10 6 million seniors per day.

Mainly explained by higher volume so volumes exported to Chile.

Even during peak season.

And increased demand for thermal generation from coming from offsetting the software can be met.

The average gas price of the quarter was $47 per million Btu, 7% up year on year. This is mainly thanks to the exports to Chile.

Let me follow up on the Q2 production.

US peak season starts on.

On Q2.

Upon gosh I agree.

The deliveries prioritize retail.

As you can see on slide nine the warmer winter negatively impacted that.

The rebuilding that.

Curtailing production to below the maximum volumes equity under one Josh.

The delay in the commissioning of the Nestor Kirchner pipeline also affected the golf help within July until today as we are delivering.

The $4 $8 million for email linky meters ramp up that we agreed to the ROM for picking up the production to more than 15 minutes you meters per day today. So we are reaching a new all time high.

Despite the weather. So Q2 production increase was mainly supported by by exports.

We pick up deliveries for Chile, even in during the winter as you can see in the graph below.

You can see in this chart as well that the.

We're under take or pay for the upcoming months and this actually ends in the.

The clearance ends on April 2024.

On top of this we could do at spot sales.

Okay.

Whether it's something we can manage blocked operation execution, we can.

So as you can see on slide 10, the new shell wells performance, just like we would have expected.

No that's what I try to have maximum daily production rate from 750000 cubic meters over to over a million.

These results confirm Sierra Chata upside potential one of the most productive blocks the Buckeye Martha Goss window.

<unk> P. Two was drilled and completed during the quarter.

We are now completing one pad and drilling another one.

In Russia, we drill and complete it to them for free in Q2 that freeze daily flow outperformed our expectations and packed who is currently under testing right now because it's just just the start of the production.

But this is all in line with the original shows us a.

But nothing out of surprises here.

We are also completing one pad and drilling another one here.

Bush.

So let's move on to the petrochemical business that posted $10 million of EBITDA in Q2, almost half year on year, driven by the significant drop in international prices and lower exports offset by higher volumes sold of performing product.

However, EBITDA was up 43% up quarter on quarter.

Primarily because of better prices and CRD, you bad upset by lower styrene and polystyrene sales sales volume was 17% up year on year, mainly driven by reforming the plan had a maintain his last year.

Offset by lower exports.

In Q2 of 41% to total sales volume was exported.

Okay.

Well moving onto the financial position in Q2, we recorded a free cash flow of $44 million. This is mainly due to the expansionary capex in gas and power higher debt service drilling by peso desk a principle.

The appreciable gets diluted by the like ablation.

Working capital improved due to better collection based from Commissioner a Q like Q1 was almost 16 days delayed on.

Q2, it improved to 50 50 days delays. So 10 days better now is substantially improved to 40 36 days so.

Almost 15 days.

More.

Improvement these variations were upset by seasonality.

Additionally, we raised $147 million net from the local markets on summary, we agree we generate this.

$3 million of net cash flow in the quarter achieving.

<unk> cash position of 400 $872 million.

The end of the period.

So moving onto slide 11, we show, our consolidated financial position, including our affiliates ownership, but just let's focus on the restricted group.

That reflects the bump their meter we posted across that the $1 $7 billion similar to last quarter. However, the net debt and the leverage ratio substantially decrease due to the divestment of some greater wind farm.

And they saw the dilution.

Because of the especially the depreciation recording $786 million and one one times.

Net debt to EBITDA.

The average life was also reduced to three three years until 2027 as you can see here there is no relevant the debt maturities that we face.

Well. This concludes our presentation now I will turn to war two margherita.

Okay, who will poll for questions. Thank you so much for helium.

Yeah.

Thank you Linda.

Florida is now open for questions. If you have questions. Please send us through some tax we don't read and answer them in the order received also please make sure your name and company are correctly the place where we can introduce you to the LDS should any participant need at this time.

That's a tough message or let's see what happens.

<unk> coal, while we pull for questions.

Our first question comes from Millennium, Gallium gallium and Alexandra malaria from J P. Morgan they have in total six questions covering E. M. P power on the financial sector, let's start with the Yankee business Pampa that volumes were quite strong due to the beginning of winter season include.

Adding volumes exports to Chile, and deliveries for thermal generation demand by commercial what should be expect for the third quarter.

Okay.

Hi, good morning, everybody.

Your theory.

Alright.

Hi, good morning, everybody.

This question gives me the opportunity to make a comment but I wanted to.

Because to reinforce something that I believe I said that today is a historic day for <unk>, where we are.

Brian .

Although the metal Keystone pipeline has been operational.

Emily.

Last week.

And Alpha did not request from the producers the food 11 million cubic meters of natural gas per day by the new pipeline.

Transport that is because.

The worst steel.

LNG ship in Bahia Blanca.

We've got to deliver through.

This system needed to empty that should before being able to.

You shipped from the new innovation the $11 million.

That's perfect.

Clearly the first day that interface, eliminating those 11 million out of those 11 million we are contributing.

44% to $4 8 million cubic meters of natural gas per day.

So that will.

Make us a new record of production today.

Thank you and have a close to 60 million cubic meters of natural gas per day.

But we are seeing online or a system, we are already delivering.

So everything is working.

Working with US it's true we are extremely proud.

This opportunity to congratulate the old Osceola.

And all his team because they've done an outstanding job, we are very proud of.

You said you've been that is extremely significant.

Bump.

So having made this comment or Australia.

This concludes our question.

To be honest with you.

Okay.

Okay. Good morning to everybody. Thank you Carlo.

For the introduction.

Well as you mentioned it is.

Yeah.

Drew that we've been able to double our production to 2020, we started with 7 million cubic meters a day on the winter break and we are now reaching close to $60 million.

Out of which around 50 million goes to the local market.

We have.

Authorization for exports to Chile of around 1 million, a little bit less than that close to you may have.

All of these comes from our developments, both in CRH Alba and getting going.

Under our Medusa.

In both cases, we were very surprised with the performance and the productivity of the rock and we.

<unk>.

We're able to.

To strike significant results.

In both cases.

Our second question is regarding the power generation business.

And what was responsible for the margin contraction is there any program maintenance scheduled for the second half this year.

Hi, <unk>, yes, we do we usually do some.

<unk> says when Theyre soft peak season, usually September approach. So yes, we.

We do about a year on year to production this year.

Greatly surpasses last year, thanks to the combined cycles for a commission and under when you wind farm. So.

The maintained answers partially upset in liver.

The increase year on year.

Yeah, and I would add.

Part of the.

Marching contractually speak also.

The fact that the.

Legacy capacity remuneration.

<unk> goes.

Hello.

The appreciation of the official exchange rate.

And in relation to that.

And I would ask a wide margin.

Contracting.

On part one and part of our power generation business.

Yeah actually we say in your earnings release.

Should we not have that.

Financial remuneration for the <unk> the thermal power units will have.

Well now the animals are 8% down year on year, but.

If we didn't have that special remuneration it will have been down 30%. So.

Sure it's equal heavy horse so the depreciation it's killing.

Uh huh.

The legacy margin.

Thank you Leah angles, we have one more question of all power generation can you comment on your participation on that and therefore, new thermal capacity.

So we are studying the.

We are studying a couple of prospects.

There's not much information that I can.

Provider.

Brian right now.

It's going to be.

They have put a cap on the on the prices, which.

Yeah.

You have to be very careful when evaluated in the the projects.

Also you have to take into consideration with what's going to be the macroeconomic condition in the next year one.

You will have to.

Develop.

The profit is bigger than the two.

Turning to Newport in 2025.

For the open cycle.

<unk> do you have.

Critical months two to deliver.

Yeah.

So we are studying because.

A lot of implications or dilutive.

Complexities that we need to analyze we don't have clarity yet.

Hopefully, we'll be able to provide more information on the next.

On the next call most broadly although the bids are expected by the end of this month I think most probably there would be that they will be related.

Thank you <unk>. The next question is regarding.

The financial area are you seeing any difficulty to access to the vulnerable.

Hello.

Perfect.

Once the situation has been tighter than eight this months.

Especially regarding the access for <unk> services.

However, every critical good imports that we needed, especially for our new wind farm.

Where access so.

It is true.

Access to many of you should have factories being harder and takes more time.

Not effect so far.

Our capex plans.

M&A is something critical so far so we expect to continue this.

Hopefully.

We don't do any delays in capex.

Yes.

Thank you Peter.

We have one more question one more question just to confirm that the FCC roughly $56 million or something of that in Q2 is what allowed.

What allowed you to have OLED alerts for the $93 million of the 23, a bond repayment.

Yes.

Correct.

This 60 40 wound.

You can get dollar finance for the 60% you can access the elfa sale effects.

<unk>, 40%.

That's why we should only $55 7 million Donuts, which is exactly the 60% of the.

$92 9 million rollout.

The transaction was a two year.

Local dollar bonds at a 499% rate, which is very convenient perhaps.

We Doug.

We gain access to and the remaining 40% of depletion effects using our pesos.

Fully without any issues.

In 2023 holdups.

Thank you Vito. Additionally, they asked it seems that the state of the local capital market is quite healthy could you confirm that the local market.

Looking at capital Michael.

Yes.

The access a little bit on that yes. It is if you see year to date.

Total financing.

Of around roughly $450 million using <unk>.

Both capital markets from local banks.

And we issued different instruments at different moments.

On a linked bonds had zero percent rate each.

Yes.

The peso rates.

Mr rates.

Below inflation rate. So these are the best.

The local market that we profit.

That situation.

To finance two Bcf capex so.

As long memories.

Okay, and overhang amount of basis I think that.

We will profit from that situation.

Yes.

Part of the company.

To profit.

Sure.

Thank you. Our next question comes from Bank of America, <unk> and annually. They have several questions as well we will start with the MP business. The export prices of gas to Chile was a big driver for higher gas prices for the quarter.

<unk> approval to export until April next year.

However, how do you see that as exports of Chile in the.

Do you see the exports to Chile, a relevant driver or gas prices from 2025 onwards.

Yes.

Okay, I would say that definitely it will be a driver I think there are three elements to take into account. The first one is that is very probable that we will be shifting from yearly contracts as we have today two multi year contracts.

Given that the government as the certainty that there is enough gas to supply both the local demand in the region or market.

Should be seen.

Our strong next year.

The second issue is that.

It's very broad also during the winter at least in the central area of Argentina, Chile through our foundation, we will see the $5 million from daily authorization excellence.

Uh huh.

Replied as from next year as well.

And we have to take into account as well as there is.

That's already been approved and it's on its way to reverse that.

All of the North West.

Wes.

Pipeline that will eventually.

Maybe it's possible to reach the north Chilean market.

The north the GM electricity market with Argentinian gosh.

Hey, Ken.

We are seeing that Chile is going to be a major player in Argentina exports in the coming years.

Okay.

Okay.

Our next question from with <unk>.

Throw all color plants tender.

How does how is bump of appetite for the thermal power generation tender Neil Koehler I think we.

Cover this.

Okay great.

Good morning, guys.

Hello, Thank you everyone.

Alright, which power plant is the most likely to receive an additional capacity.

Which capex for now what do you see for additional power plant capacity.

Yeah.

Yes.

I think Oliver but.

221.

Another question.

I would say that we have.

Mild appetite.

We are quite different from the Bureau shows up in <unk> hundred that we had in the non gas then there last year.

Conditions.

The surround those conditions are quite different.

The uncertainties.

The.

Okay macroeconomic scenario for <unk> going forward.

It is uncertain so.

We have a.

Why the different other than the one that we had.

For example for.

Glen Gaslog shown less.

Less last year.

Regarding which plant.

We are most studying.

Greenfield and brownfield.

But we are now starting to project moves like the if we go.

<unk> will go just one project.

Regarding which capex for EMEA, what are we filling capacity with you don't have the.

With rig would you requested from the suppliers.

We still don't have those.

Got it.

<unk> seen about a $70000 per installed EMEA what of open cycle capacity.

Yeah.

And how about a medium for for a combined cycle.

Yeah.

Doug.

I would say would be the.

<unk> said, we are initially working with.

Yeah.

Okay.

Okay.

Okay. The other question is renewables growth.

You recently announced the Safford swap with an all E&P focus decreasing renewals capacity, what liberalized cough with energy or energy prices breakdown for new projects do you see for renewals project in Argentina for new auctions, what's the main bottleneck for the renewables growth.

The main bottleneck is transportation capacity.

That's why until there is a growth in the grid.

Where do you see to increase.

Renewable capacity in the system the way we.

Circle.

We are around that situation for our.

Six expansion goes.

Yeah.

Is going directly to the 500 kilowatt.

High voltage grid.

Most of all of our other.

Yeah.

Our other wind farms were connected to or coming out of 32.

Hello.

Great.

So.

Sure.

For new auctions for four significant expansion of renewable.

Power generation it is required to expand the transportation group.

Alright, let's move on to another analyst this is for <unk>.

First in for Sara.

Bruno Montanari from Morgan Stanley can you give us more color on the developmental plan for wrinkle net under what will be the timeline for development and potential shale oil production coming from she fulfilled can you give us an idea of the necessary capex with the development of the area.

Okay.

We already have a one well drilled and completed in bringing ronda, we've tested that well, we have our boc well as well.

But to go to your question, we will be studying the development of the development of the pilot plan already gone down under in the first quarter of 2024, our plan is to drill two pads out of four wells each.

And also the surface facilities in order to be able to emigrate.

The reaction.

That will probably end by the end of 2025.

And the total amount of Capex for this initial pilot plan will be around $200 million now.

Second stage of the development stage for England that under.

We'll probably take the plateau production of the block to around 20000 barrels a day by diluting happen a couple of years.

Now in in advance.

Since we started the negotiations for additional transportation capacity in order to equate the full production of the block.

Okay.

This question is quite similar to two one the last but can you comment on the challenges so $10 for the in core equipment.

And the other international purchases.

I think we covered it.

Yes.

The next question is from Lucas <unk> from PPI, we have noticed a deceleration in the non grocery gas production due to low resin Daniel de Boer.

Our <unk> gas contracts.

Are there take or pay.

Have you generate the revenues despite the lower production.

How are you analyzing.

Natural gas demand risk now that the Mr. Kisner pipeline is working and will enable higher gas output.

Yes, well, we don't see.

Our risk in natural gas demand.

I would say that as Lida mentioned before we had a very mild winter.

That does not happen every year so.

Glen gas was structured in order to be able to match.

The demand and the supply of the local market and this is how we see it.

There is a bigger base of around 75%.

But we foresee in the future that the <unk> will be fully.

Paul.

Supplied by the by the industry, we don't see any any major risks there.

And what was the other part of the question again.

Okay.

Maybe generated revenues.

Yes, we did generate.

Revenues, despite the lower production, because we were able to export additional volumes to Chile apart from our firm contracts and that's basically what we explained before regarding our increase in total revenues, although we were restricted in local production.

Well the other question from Lucas, what's already been out on the so let's skip on that.

We already answered it.

Alejandro Demichelis from Jefferies Keith asking.

How do we see domestic and export volumes going forward.

Until next year.

I think you are literally claims any government yeah, Glenn you did that.

And you also asked for going out on a niche or also cover that.

What the Govt. It's also asking our eco net NII I think we also cover that.

SaaS also while the average price of energy sold has been declining in the recent quarter versus the previous.

Previous year does this as saying the fact that the increases.

Granted the spark Energy Inc.

Its discretion on they are not covering the depreciation with the seasonal effects.

However, the the differential remuneration.

<unk>.

Is contributed by the dollar.

For strategic thesis healthy, but it's not helping to copper depreciation.

The next question comes from Martino marathon from that and secure this.

She asked.

Well about Ingo net under which we cover.

And the timeline of the capital deployment and we should recover.

Do you have the estimates of cooling recover.

This one is Neil is what do you expect in terms of Cabot adjustments for legacy units and the regulated segments of PGS and Transnet.

Do you have seen the upcoming tariff reviews will take place.

Yeah.

Two hour for price.

There's been significant tariff increase for both four Dcs this year an election year.

Yes.

First time you had there.

In a decade.

Although us.

The national elections approaches I'm.

Little bit more reluctant to see that.

There will be significant.

Increased fees from from now on.

The truth is that the remuneration goes for power.

Power transmission for electricity transmission and the forward.

For Tcs.

For natural gas transportation for legacy capacity and power generation.

Okay.

Dairy prices are significantly lagging.

All of the variables in the industry and it's hurting the industry significantly so.

Although I don't expect anything significant but as John said.

We get some adjustment.

In the next.

Doubled before before year end.

Alright, well thank you everyone.

Sure.

Yeah.

Well the other question for Marty Marina, it's about what's the focus.

What's a pumper focused the most in the medium term I will say, it's solar planetary better.

I want to confirm it again.

This focus on the medium term.

The medium term with us that's your.

Explain.

To become.

A player on.

Oil production.

As well so.

So.

Diversify our E&P segment that is today.

Almost fully concentrated on natural gas.

Right.

We are perfect again expansion in oil production, that's why we've done this acquisition of <unk>.

And by the way.

If there was to deliver what we are.

Expect they will deliver the acquisition of <unk>.

Uh huh.

Exceptional transaction when compared to.

All previous transactions on the market in terms of cost per acreage.

So we are extremely happy with the with this acquisition, although we have to.

Yeah.

We have we.

We would've preferred debating gas, we should've been gosh, we had to be one of our.

When pharmacy.

Exchanged with was which was.

Costly for them for ourselves, but on the other hand, we have been developing.

Wind farms quite significantly last year, and we are in the middle.

Very significant project going forward too.

We will replace with <unk>.

Yeah.

We will.

More than replace what we have given to total in exchange for.

So we are quite quiet company with us.

This transaction.

The next question comes from current intramuscular. She makes a lot of questions, but I figure. They are all answered the only ones I would say you can say is we have more projects or whatever the foundation the local market.

We're revising the capex numbers for this year to see.

How much we still need to finance if any.

We'll probably use a mix of.

Our own cash capacity, which is huge.

And probably.

It may be some local debt if there is.

Very good opportunity.

But so far we would.

What have been done this year, so far that we.

Got it.

Bank debt in local them.

We are.

Too much color for the year.

No.

Danny.

No issues.

Seeing none.

Following months will be some more opportunistic about it.

Hey, guys to grab an opportunity.

And rates.

Or more on their most recent exciting item on the lead side of cash because we've already funded.

Excellent.

Great.

Yeah.

Yeah.

Thank you Vito well the next question comes from.

Ah well Ludovico Suresh from autonomy, we I think we answer pretty well from Rico Nana.

Jamie <unk> from Bloomberg.

<unk> loss for the U S not on Fox S M.

How do you access a dollar of it as Peter covered that.

Ludovico Suraj is asking according to depress excellent has pudding keeps RG assets on sale would you be interested in making an offer.

Excellent Thanks, a lot.

Sure.

Yeah.

We have been invited to participate in the process, we were studying the b assets.

Uh huh.

Yeah.

It's a very interesting.

Asset.

There's not much information that way.

We can provide at this point other than we are.

Analyzing the opportunity.

Yeah.

Yeah.

Great.

Cheers.

Well. Thank you for another source for eco net I'm not ready to give for natural balance Phosphorism that ended up I think we covered that too.

Florida, My shoulder asking for an ASC prices hike.

Cover that too.

A question from the audience SaaS.

How pump pre.

Prepares for upcoming elections, how do you think the different outcomes can affect the company's performance.

Yeah.

The answer to that is.

We are now preparing in any special way and that's basically because.

We feel that we are in the segment of the economy.

Okay.

That is in a way.

We don't think that the energy policies will be significantly.

Significantly.

Going forward <unk>.

Depending on the outcome of the elections.

On the major issues.

Within.

There will be.

Changes on the on the margins, but but nothing significantly.

We have a business on the E&P side on the power generation side on the petrochemical metrics.

Yeah.

We feel isolated from the different.

Hello Ghansham.

<unk> sugar.

Yeah.

Early morning to.

And on the financial side.

That we've been preparing is by having a very strong.

Our balance sheet with lot of.

Liquidity with a debt profile very well spread.

Overtime.

So.

Yeah.

We feel.

Quite strong to them to face any outcome of any potential out there.

Turnover in the terminal.

That the uncertainty.

Political uncertainty might generate.

Yeah.

Great.

This one I think.

Quite color about the feis actually has triggered one SaaS Alejandro Aranda for me, though would you be willing to increase all X, which in the short term.

Okay.

We just acquired Regal.

Do we have a very significant challenge there.

We are always looking for new opportunities.

This is right.

You might be willing to consider that.

Well I think the last one.

About.

Large part of your cash position from generation vehicles.

Could you please explain in which financial instrument from invested particularly if par.

Is that it is hard dollars I think he wants to know.

Okay.

As you can.

Our balance sheet, we have a very well diversified portfolio.

Our.

Many investors are Golar are dollar denominated and what is important to note.

Recently this year will be issuing space. So our peso position is short.

Sure.

So we expect any.

Speeding evaluation or calling back.

<unk>.

In our special position will be offset by our short term debt in pesos.

That's it.

Yes.

Alright, so theres no more questions and it's a top 10 minutes. So 12, I don't know if who styloid sto.

Nico will anybody would like to add something else.

Do you have any questions. There is less and you want to do it just contact US we are more than welcome.

Happy to help you it's been a great quarter and hope to see as shown in November the first quarter.

The conference call. Thank you very much have a good day.

Thanks.