Q1 2024 Pampa Energía SA Earnings Call
Yeah.
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Our aging almost 12 million kilometers per day again because of the local demand.
64% of the quarters production came from and Ron Russo and 'twenty brings central Java Chatbot.
<unk> reflects shape shale gas fields.
Regarding the campaign, we drilled one well and completed another free shale gas wells in C&I charter.
The productivity was a standing so we almost doubled our gas production there from the other.
Hani minimum Russo experience on 29% increase compared to last year.
Without drill new drill or tiny Wilkes.
In nonoperating areas, Rio Neuquen tightening by well this quarter maintaining production levels.
The average gas price for the quarter stood at $3 $2 per million Btu is this 18% down due to lower exports in volume and price achievement.
We've played before.
We can see right below the higher deliveries of local gas were dusty.
For thermal power generation.
To petrochemicals business posted $11 million.
EBITDA in Q1, with a 58% growth year on year, mainly because of the higher sales in the reformer and lower Cogs because of the effects.
Upset by soft domestic sales due to the economic activity and lower international price.
Quarter on quarter.
The EBITDA decrease.
By 45%. This is mainly because the export dollar income was slower.
The reformer, let the output, mostly offset by the reduced demand for ceramics.
Well in Q1, moving to cash flow, we recorded a free cash flow flow of <unk> $187 million.
Besides the 70 million haircut.
On cabinets Us E January invoice impacting EBITDA.
This outflow is purely explained by the sharp increase in working capital due to the payment delays from dementia, which rose from 73 to 89 days the court.
Now it is over a 120 days in all the free view bills are paid today.
May 10 is the new March our invoice so the debt will pilots for wheels, if nothing changes.
The higher working capital as upset by lower debt service, mainly due to the reduced.
The peso stock that stock. However, we took advantage of the local market conditions and issue new debt to recover the increased working capital.
Also it is worth highlighting that we collected $45 million.
Dividends strong <unk> Otp co control oil pipeline company.
This is the second largest and only private pipeline.
<unk> equivalence.
In summary, we increase $11 million of net cash in the quarter. Despite the high working capital achieving and inherent in 45 million cash position.
By the end of March.
Sure.
Moving to the slide 12, we show, our consolidated financial position, including our affiliates ownership.
But let's just focus on the restricted group reflects the vogtle perimeter, we posted a gross debt of almost one 6 billion, 6% lower year on year and 10% growth in cash.
We kept diversifying the currency and.
And source of debt of our debt.
And as a result of a different person.
And of the gross debt.
Dollars.
The net debt recorded $718 million.
It's 21% lower year on year, and one one times leverage.
The Irish life was two eight years until 2027, and we do not face any relevant debt maturity.
So this concludes our presentation.
Now ill turn the word to our regalia show a poll for the questions.
You very much.
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Yeah.
Okay.
Okay.
So the first question comes from.
<unk> from Bank of America.
The first question is.
How do you see the evolution of the Power's generating.
Sure Hi, Joe sector on such things.
Spot energy pricing and price adjustments construction on future generation facilities.
Future PPA contracts on what are the implications for the profitability of Argentina.
Hi, Josh.
Okay.
Good morning.
Thank you for your question.
Yes.
Unfortunately, Unfortunately this discussion that is public.
Yeah.
With the cyclicality within our Seattle with the Ministry of economy.
Regarding.
The gummies payment hub.
Don't hold.
Yeah.
All of them.
The conversations regarding.
Regulatory changes.
Going forward.
I hope that we are if you're weeks away from being able to.
To start.
Well those conversations again or that the secretary of energy could could focus on deferred on this issue.
Certainly certainly the split in our CD pricing.
In Utah and adjustment.
Desperately need initial of adjustment.
Very soon.
So we hope that this inventory will have time to focus on this issue.
In the next.
A few weeks, but we don't have any visibility on.
On that matter.
Regarding construction of future generation facilities are as you know.
The New York shown that was.
Yeah.
That was awarded at the end of.
The less administration or the very end of the last administration.
Has been.
Pudong, Paul or modem put on hold.
On the final Saar, but it will be cancelled.
So.
There is no recent reality there.
You also asked about the future Ppas.
Speaker Change: I don't believe that this administration.
The.
He is thinking about.
Ppas at least not in a way that we have seen in the last decade Ppas.
Speaker Change: Where the counterparty.
<unk>.
Speaker Change: Basically got Mesa or.
Or the figure that you have energy.
But broadly.
Speaker Change: The scheme that this new administration will propose will be PPA.
Speaker Change: Where the counterparty of the of the power generation will be the distribution companies.
Please.
Speaker Change: But that is.
Speaker Change: Rick one other change that.
Has been.
Speaker Change: You mentioned <unk>.
I believe discuss.
Speaker Change: We therefore ratified we haven't seen but again.
Speaker Change: We had that those conversations during our summer.
Speaker Change: But since then they're still being part of a discussion on this topic.
Speaker Change: Yeah.
Speaker Change: Thank you very much.
Speaker Change: And second question is can you provide an update on the construction of the various new buy bonds now will help producers to Eva.
Speaker Change: <unk> during off peak times also to neighbor countries, such as Olivia Brasil an honor.
Speaker Change: The only infrastructure there currently.
Speaker Change: Yeah.
Speaker Change: Couple of things one is the <unk>.
Speaker Change: Our reversion of the <unk>.
North pipeline.
Speaker Change: The pipeline, but currently brings gas from Bolivia from the.
Speaker Change: North Bay Senior probe, Argentina to the center of Argentina that pipeline.
Speaker Change: It's in the process of.
Speaker Change: Reversing it.
Speaker Change: It's flow of gas.
Speaker Change: Now its coming north to south.
Speaker Change: Once Liza reversion is complete.
Speaker Change: Completed.
Speaker Change: Natural gas from.
Speaker Change: The Nokia innovation, we'll be able to reach the north part of the country on inventory.
Speaker Change: Yes.
Speaker Change: Unfortunately, we don't see this.
Infrastructure.
Speaker Change: Being completed by this winter, we hope it will be completed by the end of the year by <unk>.
Speaker Change: <unk>.
Speaker Change: Next summer or early next year, so it will be online by.
Speaker Change: Okay.
Speaker Change: By then.
The other.
Speaker Change: Just to give you mine that will not increase.
Speaker Change: The.
D'amato forgotten.
Speaker Change: Innovation will be able to export but rather.
Gosh that currently goes to.
Speaker Change: Yeah.
Speaker Change: Really to add to the.
Speaker Change: Thanks for that.
Speaker Change: Today's society of Argentina.
Speaker Change: And we'll be able to reach the north part of Argentina that because of the decrease in.
Speaker Change: In imports from Bolivia, because of the decline of production there needs to be.
Speaker Change: So at this point.
Speaker Change: While the east of the country could be.
Speaker Change: Could be.
Speaker Change: Supplied with LNG or eventually with <unk>.
Speaker Change: Liquid fuels.
Speaker Change: The other <unk>.
Speaker Change: Important infrastructure.
Speaker Change: The project is the completion of the <unk>.
Speaker Change: Gas compression plant in the <unk>.
Speaker Change: So domestic Kitchener.
Speaker Change: Though the first tranche of Vegas opened its location or with food.
Speaker Change: On line.
Speaker Change: The middle of.
Speaker Change: Last winter.
Speaker Change: Now the two compression plants.
Speaker Change: We will be able to double the capacity of that.
Speaker Change: First tranche of the <unk> network Kitchener.
Speaker Change: First of all that.
Speaker Change: Compression plant will be ready.
Speaker Change: We hope in the next month.
Speaker Change: <unk> also.
Speaker Change: Got it.
Speaker Change: Before the end of the winter.
Speaker Change: Increasing the capacity of the company by being 6 million cubic meters of natural gas per day.
Speaker Change: The other 5 million will be was the second.
Speaker Change: Compression plan.
Speaker Change: Is ready, which we expect we don't have much visibility, but we expect it will be by the end of the year or the union during the summer.
Speaker Change: Thank you very much.
Speaker Change: And the last question from an east.
Speaker Change: Are there any other railroad lottery changes that are you monitoring closing firstly sorry.
Speaker Change: No.
Speaker Change: I say the.
Speaker Change: The spin.
Speaker Change: All the attention has been.
Speaker Change: Unfortunately during the last couple of months has been.
Speaker Change:
Speaker Change: On this issue of milk over the payments, so we hope to be able to resume.
Speaker Change: The secretary of energy can focus on visa.
Speaker Change: On these other regulatory changes.
Speaker Change: In the next few weeks.
Speaker Change: Thank you.
Speaker Change: Now.
Alejandro DeMichelis: Alejandro Demichelis from Jefferies.
Alejandro DeMichelis: Three questions first one could.
Alejandro DeMichelis: Could you. Please provide an update on negotiations with comments regarding payments and Appleton Siobhan could you. Please confirm that outstanding balance with Gamesa.
Alejandro DeMichelis: Okay.
Alejandro DeMichelis: Yes.
Speaker Change: Thank you Alejandro.
Speaker Change: Question.
Speaker Change: Yeah.
Speaker Change: You all know it was a relief yesterday published and appreciate that said.
Alejandro DeMichelis: This morning.
Alejandro DeMichelis: Solutia and <unk> basically resolution, please PTA to assess it.
Alejandro DeMichelis: Yeah.
Alejandro DeMichelis: And got smaller.
Alejandro DeMichelis: Foods into.
Alejandro DeMichelis: Into bracket.
Alejandro DeMichelis: The payment of the transaction So December January.
Alejandro DeMichelis: On February.
Alejandro DeMichelis: All of this year.
Alejandro DeMichelis:
Alejandro DeMichelis: And proposed.
Alejandro DeMichelis: And the broker wholesale is to pay December and January.
Alejandro DeMichelis: Transactions.
Alejandro DeMichelis: With bonds.
Alejandro DeMichelis: That currently.
Alejandro DeMichelis: Trade at.
Alejandro DeMichelis: At our round.
Alejandro DeMichelis: 50%.
Alejandro DeMichelis: And.
Alejandro DeMichelis: This transaction of February.
Alejandro DeMichelis: It will be paid in cash basis.
Alejandro DeMichelis: Assuming that.
Alejandro DeMichelis: This generates are reached.
Alejandro DeMichelis: Set of lease agreement.
Alejandro DeMichelis: With Gamesa.
Alejandro DeMichelis: In terms of.
Alejandro DeMichelis: Both numbers.
Alejandro DeMichelis:
Alejandro DeMichelis: The December and January transaction for <unk>.
Alejandro DeMichelis: 85 billion.
Alejandro DeMichelis: Pesos.
Alejandro DeMichelis: That as well.
Alejandro DeMichelis: Ministry of economy is proposing to pay with the with both.
Alejandro DeMichelis: On the February transaction is 53.
Alejandro DeMichelis: Billion basis.
Alejandro DeMichelis: Yes.
Alejandro DeMichelis: Yeah.
Alejandro DeMichelis: Okay.
Alejandro DeMichelis: This is.
Alejandro DeMichelis:
Alejandro DeMichelis: What it means.
Alejandro DeMichelis: It's not we need further clarification from the resolution of that has been published.
Alejandro DeMichelis: It implies a significant.
Alejandro DeMichelis: <unk>, we have already.
Alejandro DeMichelis: Guaranteed for that.
Alejandro DeMichelis: On our balance sheet.
Alejandro DeMichelis:
Alejandro DeMichelis: Okay.
Alejandro DeMichelis: Where does I think it's it is already public as well.
Alejandro DeMichelis: I figured out which is the association.
Alejandro DeMichelis: All the power generators of the country.
Alejandro DeMichelis: Formally rejected.
Alejandro DeMichelis: The proposals are bolstering the name of all its private members.
Alejandro DeMichelis: I mentioned, primarily because our kid is composed both.
Alejandro DeMichelis: Okay.
Alejandro DeMichelis: The private generate Dorsad state owned the generators.
Alejandro DeMichelis: We believe this is an ongoing negotiation we are very optimistic that an agreement could be reached.
Alejandro DeMichelis: With the government with government with minor improvements.
Alejandro DeMichelis: Taken into account.
Alejandro DeMichelis: The restrictions.
Alejandro DeMichelis: Ed.
Alejandro DeMichelis: The second initiative that the treasury.
Alejandro DeMichelis: Is facing.
Alejandro DeMichelis: Okay.
Alejandro DeMichelis: Obviously.
Alejandro DeMichelis: Us.
Alejandro DeMichelis: We and all.
Alejandro DeMichelis: The power generators.
Alejandro DeMichelis: But all the creditors who commenced.
Alejandro DeMichelis: I've mentioned.
Alejandro DeMichelis: That is crucial to this negotiation is.
Alejandro DeMichelis: The fact that we have.
Alejandro DeMichelis: Going forward, maybe some reality.
Alejandro DeMichelis: That.
Alejandro DeMichelis: The.
Alejandro DeMichelis: Payments will begin to be current and on time from now or so.
Alejandro DeMichelis: That the stock of them. The one that we are taking it.
Alejandro DeMichelis: Eric.
Alejandro DeMichelis: There is limited and will not continue.
Alejandro DeMichelis: Increasing.
Alejandro DeMichelis: So again.
Alejandro DeMichelis: Yeah.
Alejandro DeMichelis: There's not much that I can tell you but.
Alejandro DeMichelis: We are optimistic that the.
Alejandro DeMichelis: An agreement will be reached.
Alejandro DeMichelis: It will not.
Alejandro DeMichelis: Accepting this.
Alejandro DeMichelis: Current proposal.
Alejandro DeMichelis: Okay.
Speaker Change: Thank you <unk>.
Speaker Change: Next question from Alejandro <unk>.
Alejandro DeMichelis: She wants to know how do you see upstream volumes evolving during rest of 2024.
Alejandro DeMichelis: Yes.
Alejandro DeMichelis: Uh huh.
Alejandro DeMichelis: Hey, good morning to everybody.
Alejandro DeMichelis:
Alejandro DeMichelis: Going to your question Alejandro.
Alejandro DeMichelis: We have to separate between gas and oil in terms of gas as Olivier mentioned before the demand is picking up.
Alejandro DeMichelis: So currently we are delivering a bit more than 14 million to administer today our commitment.
Alejandro DeMichelis: Total delivery is in the range of $15 seven for the winter, which we think is going to be.
Alejandro DeMichelis: Achievable and then growing this includes approximately 600000 cubic meters of exports to Chile during the winter season.
Alejandro DeMichelis: Then we would probably go back to the $13 eight that we also have committed for the off peak season.
Alejandro DeMichelis: Including around.
Alejandro DeMichelis: Nearly 1 million cubic meters per day exports to Chile.
Alejandro DeMichelis: Regarding natural gas in terms of oil.
Alejandro DeMichelis: We will see a significant decrease in pampas production, we are granting the range of 4500 barrels per day.
Alejandro DeMichelis: With the <unk> 2001, delivering 13 Android barrels today laughter die tying in of the link on that under 2000 approximately.
Alejandro DeMichelis: Our more than 400 barrels a day it will be adding up <unk> 1800 barrels a day of crude oil.
Alejandro DeMichelis: <unk> represents a little bit less than 50% of our contracts.
Speaker Change: Thank you.
Speaker Change: Alejandro also wants to know.
Speaker Change: On the performance of the recall that on our block.
Alejandro DeMichelis: Okay.
Alejandro DeMichelis: Turning to our <unk> two.
Alejandro DeMichelis: 2001, well.
Alejandro DeMichelis: We have very good news.
Alejandro DeMichelis: Well it was extremely extremely successful.
Alejandro DeMichelis: We reached.
Alejandro DeMichelis: Almost 1400 barrels per day of initial production.
Alejandro DeMichelis: Which gives you.
Alejandro DeMichelis: And EUR of around.
Alejandro DeMichelis: 13, Android to 14.
Alejandro DeMichelis: 213 to one 4 million barrels.
Alejandro DeMichelis: This is.
Alejandro DeMichelis: Particularly good.
Alejandro DeMichelis: Compare these well.
Alejandro DeMichelis: With the average of wells have been drilled with 2000 meters of.
Alejandro DeMichelis: Uh huh.
Alejandro DeMichelis: The lateral.
Alejandro DeMichelis: Leg in the area.
Speaker Change: You can see there in the slide that we rank among the top three.
Speaker Change: When we compare with.
Speaker Change: The amount of Antigua Bajada del Palo <unk>, which approximately accounts for around 300 wells.
Speaker Change: We see that.
Speaker Change: The behavior of the lingering around the 2001 is very promising.
Speaker Change: And as you can see also in the in the slide.
Speaker Change: We are way way above the average wells that have been drilled with 2000 meters of lateral.
Speaker Change: Leg.
Speaker Change: By far.
Speaker Change: Got it with for initial production to 150, we are more than 200 and also the EUR sorry.
Speaker Change: Hi.
Speaker Change: Particularly above that.
Speaker Change: In terms of future development.
Speaker Change: We foresee the.
Speaker Change: Drilling and completion of two Bucks.
Speaker Change: During 2020 for 2025.
Speaker Change: I have the.
Speaker Change: Basically the objective of Derisking the area.
Speaker Change: We're also adding a production.
Speaker Change: We are successful with these two pads, we will be adding approximately 2000.
Speaker Change: Cubic meters per day.
Speaker Change: To the current production and.
Speaker Change: The only constraint we will be facing is a transportation capacity.
Speaker Change: Have a great. These oil into Atlantica board, we already acquired a thousand additional capacity from the older wide bid and we are optimistic that we will be able to find alternative ways of moving that oil.
Speaker Change: Into the export facilities in Miami.
Speaker Change: Thank you all very much.
Speaker Change: Sorry, if I could just yes.
Speaker Change: To add to what a few of them.
Speaker Change: Yes.
Speaker Change: Just to recall to all of you that <unk> area that last year.
Speaker Change: We acquired the other 50% from our former partner.
Speaker Change: By swapping.
Speaker Change: By exchanging.
Speaker Change: A wind farm of 100 megawatt that we own.
Speaker Change: In exchange for their 50% ownership in EMEA.
Speaker Change: <unk>.
Speaker Change: <unk>.
Speaker Change: Square kilometers or 50000 acres.
Speaker Change: Gulf in acres.
Speaker Change: Area and.
Speaker Change: Yeah.
Speaker Change: We knew at that moment that we were doing.
Speaker Change: Very.
Speaker Change: Good on chip transaction Berardi the cheapest.
Speaker Change: Got it.
Speaker Change: Acquisition of acreage in the Bakken area.
Speaker Change: Now with the results of this first well.
Speaker Change: Having the first well among the best could be of the area is extremely.
Speaker Change: I'm optimistic.
Speaker Change: Confirms that we did an excellent transaction.
Speaker Change: We are very optimistic.
Speaker Change: The development of this area moving forward.
Speaker Change: Based on information.
Mitch: Hello, Mitch.
Speaker Change: Okay.
Speaker Change: Sorry.
Speaker Change: More information I've already gone Miranda Castelo mentioned.
Speaker Change: Those 60000 acres a gallon for approximately.
Speaker Change: 220 wells that could be drilled and we think that Ah you time, we might be able to achieve.
Speaker Change: Achieved a total production ranging from 35 to 40000 barrels a day.
Speaker Change: So it's quite a challenge and.
Speaker Change: An opportunity for pump.
Speaker Change: In the shale oil.
Speaker Change: Thank you very much.
Speaker Change: Next questions come from Tal <unk> from Bank of America.
Tal: <unk> says a.
Tal: Last week Brazilian government stated its intention to import gas off Mark on what in your view what is the most sensible timeline for these do you have any preliminary estimates on how bump uscirf production could grow and Waddington on Capex should you should your profile to increase the gas production.
Tal: <unk>.
Tal: Alright.
Tal: Currently we know that <unk> been developing negotiations between the Brazilian and at the end the Argentinian government to make use of these off peak.
Tal: Capacity of gas capacity.
Speaker Change: We are.
Speaker Change: We are still waiting for the for the outcome.
Speaker Change: There are different alternatives in place one of them is making use of the current Bolivian.
Speaker Change: Gas.
Speaker Change: Pipeline capacity.
Speaker Change: In order to export gas from Argentina. This necessarily meets the second tranche of the network.
Speaker Change: <unk> fusion or pipeline to be finished as well as the reversion will turbo mentioned before.
Speaker Change: Either if we want to go through <unk> or through the <unk> pipeline connecting <unk> to BARDA funding and so we are still trying to understand what the final negotiations will end up with but definitely these with that.
Tal: <unk> peak demand of around 20 to 40 million cubic meters per day.
Tal: The necessary capacities bill in order to overcome the winter shortage.
Tal: Eventually you might have that additional capacity all year round, but we are just seeing.
Tal: Seeing the first.
Tal: <unk> of the negotiation.
Speaker Change: Thank you very much.
Speaker Change: Next question come from Bruno Montanari from Morgan Stanley.
Bruno Montanari: The first one.
Bruno Montanari: Regarding the level open with macro believe e-commerce as past due receivables.
Bruno Montanari: And credit environment other than the impact this has on the working capital pressure with all of our financial implications could arise from the current situation.
Bruno Montanari: On the company's interactions with Gamesa on the government what is the best alternative to fix the current problem.
Tal: Even though the mindset of the current administration is to have free market pricing practices across on fixed time sector.
Tal: We see a faster path of <unk>.
Tal: Tariff hikes.
Tal: <unk>, which would allow kind of a sad to honor payments with the power industry.
Speaker Change: Difficult question to answer Bruno.
Tal: Okay.
Tal: Regarding.
Tal: <unk>.
Tal: Credit impairments.
Tal: Yeah.
Tal: I believe.
Tal: Yeah.
Tal: Basically what we.
Tal:
Tal: Haircut that we took into account in the first quarter accounts for roughly.
Tal: 40%.
Tal: The discount.
Tal:
Tal: I think the worst case scenario could be.
Tal: In the future person.
Tal: These can range.
Tal: So.
Tal: Could be.
Tal: Uh huh.
Tal: Marching out farther.
Tal: Haircut that we may need.
Tal: Could take.
Tal: Okay.
Tal: Regarding ongoing working capital pressure I hope.
Tal: I'm as I explained before I hope, we haven't seen the worst.
Tal: And that from now onwards.
Tal: Gamesa.
Tal: We'll begin to pay.
Tal: Lauren on on time that is crucial to.
Tal: To the agreement.
Tal: And I think that the secretary of energy has been doing an excellent job in order to.
Tal: To ensure that basically doing what it needed to.
Tal: To be done the most that was increasing.
Tal: In.
Tal: Increasing.
Tal: Terry.
Tal: Yes.
Tal: And Cigna.
Tal: A significant portion of the demand is currently paying.
Tal: The full price.
Tal: Sure.
Tal: Electricity.
Tal: Yeah.
Tal: Only those.
Tal: What we call the <unk> two and three.
Tal: No.
Tal: Yeah.
Tal: The lower you go lower and middle <unk>.
Tal: Ken or Phil.
Tal: Residential user from school subsidized.
Tal: And those.
Tal: Okay.
Tal: I think it will.
Tal: We need to continue to be subsidized.
Tal: Yeah.
Tal: <unk>.
Tal: The pace at which those subsidies will disappear.
Tal: Yeah.
Tal: I'm not in a condition to say thats more related to.
Tal:
Tal: Massachusetts.
Tal: Laura.
Tal: Political and social issue that the government needs to.
Tal: Decide on.
Tal: I'm not sure if I, let me.
Speaker Change: Read the question of is there anything else that I'm missing.
Tal: We are lucky to work with the Attica builder.
Tal: Yes.
Tal: Oh, yes.
Tal: It was a long question.
Tal: So just a short term question for my goodness.
Tal: And for them completely.
Tal: Sure.
Tal: Well I think I have basically.
Speaker Change: Got it.
Speaker Change: Thank you very much.
Speaker Change: And second question from Bruno says on behalf indicated it wants to pursue investments in channel average.
Bruno Montanari: Should we think about the timeline for Capex acceleration on how does the issue with Gamesa in back to capital allocation through processing short to medium term.
Speaker Change: Okay.
Speaker Change: Oh, okay.
Speaker Change: We don't see any relationship between the e-commerce.
Speaker Change: Problem and our investments in oil, it's a completely different market.
Speaker Change: And.
Speaker Change: We don't see any.
Speaker Change: Relation between those two rigs.
Speaker Change: Regarding the <unk>.
Speaker Change: The investment.
Speaker Change: Sorry.
Speaker Change: As we mentioned before we would probably be drilling and completing two paths.
Speaker Change: That oh.
Speaker Change: Or was each so a total of eight wells and that will account for approximately $160 million.
Speaker Change: Yes, the necessary facilities.
Speaker Change: The earthquake.
Speaker Change: That initial production.
Speaker Change: Okay.
Speaker Change: Thank you.
Speaker Change: Next question.
Speaker Change: Come from.
HSBC: Our young from HSBC.
Young: <unk> could.
HSBC: Could you give more detail around the write offs comments of comments on receivables and in which circumstances, you won't be able to reverse such brighthouse unexpected payment for the remaining balance.
HSBC: Yeah.
HSBC: Yeah.
HSBC: Okay.
Speaker Change: Oh, sorry.
Speaker Change: Sorry.
HSBC: <unk>.
HSBC: More details about the write offs.
HSBC: Yes.
HSBC: I don't.
Speaker Change: The write off.
Speaker Change: But as I explained.
Speaker Change: Before.
Speaker Change: Hmm.
Speaker Change: December and January transactions accounts for 85 billion pesos.
Speaker Change: That if capital plus interest.
Speaker Change: Regarding the Asian tourists. These are doubts how that those will be.
Speaker Change: Accounted for weather.
Speaker Change: We should do a complete write off.
Speaker Change: They will be paid in with bonds.
Speaker Change: Whether they will be paid in cash.
Speaker Change: Yeah.
Speaker Change: The three alternatives.
Speaker Change: Not clear what the proposal.
Speaker Change: No.
Speaker Change: Yes.
Speaker Change: And just depending on that outcome the discount could be.
Speaker Change: To be between 30 and 50% so our.
Speaker Change: Our write offs stands right in the middle.
Speaker Change: It could be a slight decrease or increase depending.
Speaker Change: The final outcome of the negotiation indicates that.
Speaker Change: Yeah.
Speaker Change: Okay.
Speaker Change: We eventually decide to affected or bolsa.
Speaker Change: We are.
Speaker Change: Being granted.
Speaker Change: Other issues.
Speaker Change: Not.
Speaker Change: Related to the discount, but with things that may happen in.
Speaker Change: In the future.
Speaker Change: As this is.
Speaker Change: On an ongoing negotiation rather than.
Speaker Change:
Speaker Change: Much information.
Speaker Change: Thank you next question from Julien assess and if we can give an update on the Mr. Gesner pipeline status and outlook for <unk> infrastructure constrained.
Julien: If there are any changes in your outlook for the pricing scheme of natural gas.
Speaker Change: Okay.
Julien: Also we cover this but.
Julien: Again Gulf openness accretionary increase the evacuation capacity from the new innovation is 11 million cubic meters of natural gas per day.
Speaker Change: That happened in August of last year.
Speaker Change: Once the two compression plants that are currently being built already.
Speaker Change: Capacity levels. So goes from 11 to 22.
Speaker Change: The first of these compression plant will be ready.
Speaker Change: In in demand for so.
Speaker Change: Increasing six mute so lowered from 11 to 17.
Speaker Change: Once the second compression plant is ready goes from $17 million to $22 million.
Speaker Change: Cubic meters.
Speaker Change: And the other question received any changes in the outlook.
Speaker Change: Yeah.
Speaker Change: No we don't we don't.
Speaker Change: As you know this.
Speaker Change: The plan gas scheme.
Speaker Change:
Speaker Change: And that goes.
Speaker Change: Basically said the volume and prices.
Speaker Change: The comedian of volume and prices or for the industry until 2028.
Speaker Change: We are not expecting any changes.
Speaker Change: Yeah.
Speaker Change: Okay.
Speaker Change: Thank you.
TPG: Next questions come from <unk> <unk> from TPG.
TPG: First one is this is there any other in mcl I'll say anti <unk> increase in the upcoming months last one was 74% in February.
TPG: Hi, Pablo.
Pablo: Yes, you are right.
Pablo:
Pablo: It was a 74% increase in February.
Speaker Change: I don't recall, where it was the previous.
Speaker Change: The adjustment, but I think he was in February.
Speaker Change: For many years so this 74%.
Speaker Change: <unk> significantly.
Speaker Change: Yeah.
Speaker Change: The inflation that was accumulated.
Speaker Change: Throughout.
Speaker Change: The former 12 months.
Speaker Change: Although it was short of the expectation of a over the industry.
Speaker Change: Since then we have been.
Speaker Change: Running.
Speaker Change: Unfortunately high inflation.
Speaker Change: Every month.
Speaker Change:
Speaker Change: So we hope it will come in the next few months actually recover they will come in the next few weeks.
Speaker Change: But honestly I cannot give you any clarity because as I've said previously there hasn't been any.
Speaker Change: At least from our side.
Speaker Change: I don't know of our colleagues from our Fabs because we've been in discussion with the authorities.
Speaker Change: Thank you with no final question from Paula says would you. Please give more color on the petrochemical business sales.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: And so to make our business centers.
Speaker Change: Okay.
Speaker Change: The pet Chem business.
Speaker Change: Yeah.
Speaker Change: Yes.
Speaker Change: Two parts, one what we call the reformer.
Speaker Change: That it's a business that.
Speaker Change: It's the drivers are more related to international prices basically price of crude.
Speaker Change: <unk> and refined products.
Speaker Change:
Speaker Change: And this international spread of goals.
Speaker Change: Those pricing drive.
Speaker Change: The economics of.
Speaker Change: Yes.
Speaker Change: Part of the business, which in the past few years Scott Beamer.
Speaker Change: Profitable.
Speaker Change: It has been.
Speaker Change: And good levels vis vis.
Speaker Change: For many years.
Speaker Change: Yeah.
Speaker Change: At least what we are seeing in the.
Speaker Change: The future markets is that.
Speaker Change: This trend will continue the other part of the business, what we call the Nichols.
Speaker Change: That those are more related.
Speaker Change: And.
Speaker Change: So the activity to economic activity.
Speaker Change: Especially goes.
Speaker Change: Related to.
Speaker Change: All in across all industry, especially.
Speaker Change: Instructions by the many other durable as many other industries.
Speaker Change: We have supply for mobile mini.
Speaker Change: Industry.
Speaker Change: So it's more dependent on the economic activity.
Speaker Change: <unk> of the country have already seen.
Speaker Change:
Speaker Change: Significant declines.
Speaker Change: Oh <unk>.
Speaker Change: 15 20, 25%.
Speaker Change: And <unk> and part of that you've seen that.
Speaker Change: On the figures that we are publishing.
Speaker Change: I wish we published yesterday.
Speaker Change: And.
Speaker Change: We think that this trend will will continue until the.
Speaker Change: The rebound of the economy comes.
Speaker Change: Hopefully.
Speaker Change: Sure.
Speaker Change: But at some point in the second semester.
Speaker Change: Yes.
Speaker Change: Thank you very much next question will come from my no matter from loving secured the first one first.
Speaker Change: The amount will be considered when calculating the outstanding now will include accrued interest on FX differences is there is there a possibility of recognizing an additional amount.
Speaker Change: Okay.
Speaker Change: Alright.
Speaker Change: Well I think I already covered this.
Speaker Change: To summarize and to make it easier we accounted for 40% Kirkup with even worse case scenario will be in the 50%.
Speaker Change: The haircut.
Speaker Change: Haircut, so we will have to.
Speaker Change: Provision or to reflect the loss of an additional 10% of beef 85 billion pesos.
Speaker Change: The total.
Speaker Change:
Speaker Change: The total amount that has been.
Speaker Change: Okay.
Speaker Change: That is not paying cash rent that will that the proposal of the government has to pay the invoice. So assuming that we accept this proposal a series.
Speaker Change: We might need to take it further.
Speaker Change: 10%.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Thank you our next question Seth.
Seth: Could they be a program of Mei Li they off this have any impact on your operations and our strategy.
Seth: Okay.
Speaker Change: Okay.
Speaker Change: Yeah.
Seth: I think going forward what it would.
Seth: Very important.
Speaker Change: Not only for us but.
Speaker Change: For all of our colleagues.
Speaker Change: Ricky.
Speaker Change: The lease.
Speaker Change: Then.
Speaker Change: The scheme that incentivize.
Speaker Change: <unk> infrastructure.
Speaker Change: Project.
Speaker Change: I think that is.
Speaker Change: Yeah.
Speaker Change: For.
Speaker Change: Many.
Speaker Change: Infrastructure projects that could work well.
Speaker Change: But could bump out already subsidiaries.
Speaker Change: These years.
Speaker Change: Okay.
Speaker Change: Could participate.
Speaker Change:
Speaker Change: This is an important.
Speaker Change: These are an important issue that comes with the Lady luck.
Speaker Change: Okay.
Speaker Change: Thank you very much next question come from is it going from London from Manav.
Manav: The first one and he wants to know and for the oil and gas segment, if I take the cubic meters of gas. So I'll be reported price under Verifone, They reported price and calculate the south I end up quite far from the total sales reported net.
Manav: What's the difference you're seeing a conversion factor of <unk> 53 per cubic meters.
Manav: Btu enough.
Manav: Okay.
Speaker Change: Got it.
Speaker Change: Sure.
Speaker Change: Well I will give you laid out there.
Speaker Change: Sure.
Speaker Change: I will give you later the the answer but I think you are converting wrongly.
Speaker Change: But we will produce where we sell with them by trading so far.
Speaker Change: Leasing this quarter.
Speaker Change: Thank you.
Speaker Change: How many unconventional wells were connected in 2023 and 22 net working interest.
Speaker Change: Right.
Speaker Change: Yes.
Speaker Change: In 2022, and got when we say unconventional and we're talking about dry gas and shale. So in 2020 do we drilled 20 wells.
Speaker Change: Hi, <unk>.
Speaker Change: 100% participation in a mango Mojo and $2 five wells.
Speaker Change: I've been working working interest in <unk> and.
Speaker Change: During 2023 were drilled.
Speaker Change: The three wells.
Speaker Change: In sorry, 35 wells in Charlotte, Tampa, and Mango Mojo together.
Speaker Change: Out of approximately half on half Michael Johnson right, Yes, so edwin.
Speaker Change: And with 18, five wells and their working interest.
Speaker Change: Okay.
Speaker Change: Thank you very much.
Speaker Change: Once she wants to know about going on there on that any update on how you plan to proceed timing initial capex number off well.
Speaker Change: Perhaps looking for a partner to develop the area.
Speaker Change: Okay.
Speaker Change: I think we already covered this.
Speaker Change: These question as we mentioned before we will be drilling so perhaps.
Speaker Change: By the end of 'twenty for beginning of 'twenty five.
Speaker Change: And.
Speaker Change: Depending on the results of the coupon within developing.
Speaker Change: And then in the coming years.
Speaker Change: Subject to.
Speaker Change: Obtaining <unk> equation.
Speaker Change: For the production.
Speaker Change: There is no there are no partner very narrow.
Speaker Change: Right.
Speaker Change: Thank you all on us yet.
Speaker Change: And next one is furniture charterer wants to know if there's any update on hydro concessions.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: No.
Speaker Change: Again.
Speaker Change: We haven't had any talks.
Speaker Change: And with the secretary of energy other than.
Speaker Change: The issue about whether payments.
Speaker Change: Hum.
Speaker Change: So I understand that it's going to for those that have already mature that's going to we are farther.
Speaker Change: Extension for a few months.
Speaker Change: And.
Speaker Change: Fair enough.
Speaker Change: So mostly after that they will return to.
Speaker Change: To be stable.
Speaker Change: State owned and owned by <unk>.
Speaker Change:
Speaker Change: But I don't know what all the plants.
Speaker Change: Going forward, whether they will be.
Speaker Change: Yeah.
Speaker Change: Auction poor operational data for the <unk>.
Speaker Change: I don't know.
Speaker Change: Uh huh.
Speaker Change: No no information.
Speaker Change: Thank you Lou next one from Sharon says she wants to know when we start to see lower conflicts.
Speaker Change: Okay.
Speaker Change: When we started slower I think will.
Speaker Change: Sure.
Speaker Change: Capex will be lower than the previous.
Speaker Change: Previous year for example.
Speaker Change: In terms of natural gas on things too.
Speaker Change: Excellent productivity.
Speaker Change: The last wells that we have drill we don't need to to redo any new well until.
Speaker Change: Sure.
Speaker Change: Until.
Speaker Change: In the beginning of next week Winter just a few wells in order to.
Speaker Change: Maintain production plateau, approximately three four wells.
Speaker Change: Yes, four wells to production.
Speaker Change: Production flat and those.
Speaker Change: Bye.
Speaker Change: We're willing to be in operation by.
Speaker Change: At the beginning of May.
Speaker Change: And next winter winter of 2025.
Speaker Change:
Speaker Change: And the Capex that will continue to be high will be nowhere to be below <unk>, which we are.
Speaker Change: Yeah.
Speaker Change: Eager to Louisville.
Speaker Change: Okay.
Speaker Change: Thank you <unk>, we have one question for one more question from Gil from London from wireless she asked when coupon Fox start paying corporate taxes, they'll still have tax assets are lost harvesting.
Speaker Change: Okay.
Speaker Change:
Speaker Change: We believe yes, we will continue to have a.
Speaker Change: Thanks.
Speaker Change: Gary for loss.
Speaker Change:
Speaker Change: That will broadly.
Speaker Change: Extinguished.
Speaker Change: A year and a half from Knoxville broadloom to need to fix.
Speaker Change: Six.
Speaker Change: Yeah.
Speaker Change: It wouldn't be the first.
Speaker Change: The law will be a year, where.
Speaker Change: That loss.
Speaker Change: The loss carryforward.
Speaker Change: Extinguished.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Oh very much.
Speaker Change: Next one is from David Farwell from point the Atlantis.
David Farwell: While <unk> and <unk> have recently reshaped the international market.
Speaker Change: Back to issue new debt during the year.
Speaker Change: So.
David Farwell: Hello, everyone.
David Farwell: Yes.
Speaker Change: Today, we are.
Speaker Change: All right I'll start with you soon.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: I know who does.
Speaker Change: Thank you.
Speaker Change: Sorry so.
Speaker Change: As of today, we have a solid financial position.
Speaker Change: How significant that might be already from dana's.
Speaker Change: 2027.
Speaker Change: So we are not in a hurry to issue new left in international markets right now.
Speaker Change: So I think we were the only though.
Speaker Change: In that case, we needed financing PURA for an M&A opportunity or if there is how really window in the market.
Speaker Change: There is not a particular neither right now.
Speaker Change: Okay.
Speaker Change: Also.
Speaker Change: And our last shareholders meeting we approved the issuance of a convertible you guys won.
Speaker Change: So probably if market conditions are met we could do that and it will be an interesting opportunity to two.
Speaker Change: To finance the <unk>.
Speaker Change: By me a very.
Speaker Change: Compared to the rates.
Speaker Change: Also taking into account the way you referred trace almost 30% of our ADR at much lower price.
Speaker Change: Yes.
Speaker Change: Thank you Monica.
Speaker Change: Our next questions are from Nuomi costs Rosh.
Nuomi: First one first one would be the impact of the new investment regime.
Speaker Change: <unk> in the omnibus Bill for Pompe.
Speaker Change: Okay.
Speaker Change: Yeah.
Nuomi: The impact will be that.
Speaker Change: Big infrastructure projects.
Speaker Change: That.
Speaker Change: Hi.
Speaker Change: Difficult to finance.
Speaker Change: Yeah.
Speaker Change: This is Kim makes it more possible so.
Speaker Change: That is the benefit of Oh.
Speaker Change: The scheme.
Speaker Change: Yeah.
Speaker Change: You bet.
Speaker Change: Big infrastructure projects.
Speaker Change: That have a.
Speaker Change: Modest.
Speaker Change: The IRR.
Speaker Change: The fiscal incentives.
Speaker Change: Okay.
Speaker Change: It makes it possible that is.
Speaker Change: Not for pump that's basically that.
Speaker Change: Yeah.
Speaker Change: <unk> four.
Speaker Change: On the infrastructure project.
Speaker Change: Yeah.
Speaker Change: Thank you and the next Guang says if Capex is lower this year could we expect our dividend distribution.
Speaker Change:
Speaker Change: We haven't.
Speaker Change: Taking the decision.
Speaker Change: Within.
Speaker Change: Argentina has proven to be.
Speaker Change: F O with proven to be a very volatile market and.
Speaker Change: Bus.
Speaker Change: Yeah.
Speaker Change: Strong financial position.
Speaker Change: <unk> has proven to be.
Speaker Change: And the right strategy.
Speaker Change: Yeah.
Speaker Change: Yeah.
Speaker Change: And you can see that in this situation.
Speaker Change: We have almost we have not receive any payment from <unk>, which is accounts from.
Speaker Change: 40, 40, 45% of our sales.
Speaker Change: We haven't received any payment for four months.
Speaker Change: That would have put us.
Speaker Change: This trade situation.
Speaker Change: It's basically $200 million.
Speaker Change: And working capital need.
Speaker Change: And so we are very happy to.
Speaker Change: To have the strong financial situation that we see on the other hand.
Speaker Change: It allow us to pursue M&A.
Speaker Change: M&A transactions.
Speaker Change: And we don't have anything.
Speaker Change: In the pipeline right now.
Speaker Change: But.
Speaker Change: Goodbye.
Speaker Change: We are we like to be ready.
Speaker Change: I know opportunities up.
Speaker Change: Yes.
Speaker Change: So that's the.
Speaker Change: That's a corporate.
Speaker Change: Strategy.
Speaker Change: I'll stop now.
Speaker Change: Alright next question from Ignacio Nikolsky.
Ignacio Nikolsky: Loans from <unk> and do you think that there's still room for lower lifting costs in Shanghai or at this level the company reached bottom.
Ignacio Nikolsky: Hi.
Ignacio Nikolsky: We definitely see.
Ignacio Nikolsky: The possibility of lowering significantly the shale oil.
Ignacio Nikolsky: Lifting costs.
Ignacio Nikolsky: Because we are basically working today with our extending extended testing facility. So once we have the final.
Ignacio Nikolsky: Facility in place it was a significant reduction in our niche.
Speaker Change: Thank you what else here.
Ignacio Nikolsky: Next question from Darryl on Ida from malaria.
Ignacio Nikolsky: She says irrespective Transenna guarantor paid in April the outstanding debt of 42.
Ignacio Nikolsky: To $5 million from previous quarter.
Ignacio Nikolsky: Okay.
Ignacio Nikolsky: Yeah.
Ignacio Nikolsky: On the transmission companies.
Ignacio Nikolsky: Okay.
Ignacio Nikolsky: I mean, it is current on transmission with transmission complex.
Ignacio Nikolsky: Davina.
Ignacio Nikolsky: I think it was in February.
Ignacio Nikolsky: A resolution of the secretary of energy given transmission company.
Ignacio Nikolsky: Hum.
Ignacio Nikolsky: Priority.
Ignacio Nikolsky: Uh huh.
Ignacio Nikolsky: Vis vis other greater scope of Cammisa.
Ignacio Nikolsky: And so transmission companies.
Ignacio Nikolsky:
Ignacio Nikolsky: Our.
Ignacio Nikolsky: Or are being paid on time.
Speaker Change: Im sorry, I don't know what the 42.
Ignacio Nikolsky: <unk> pesos that he's referring to I don't know what it was.
Brian: Hi, Brian.
Brian: Okay.
Speaker Change: And next one from Amit Bhalla from point that'll Manav.
Speaker Change: What they expect.
Speaker Change: What is the bump of upward through with regard to be once it is online.
Speaker Change: Okay.
Speaker Change: We acquired a 1000.
Ignacio Nikolsky: 1000 cubic meters per day of additional capacities related.
Ignacio Nikolsky: That is going to be the addition of al.
Glenn: Hey, Glenn.
Glenn: 1000 cubic meters.
Glenn: <unk> thousand barrels.
Glenn: Thank you or LCL.
Glenn: Next question comes from Tanya, but on myeloma.
Tanya: And could you just basic explain the deferred tax account NYSE data as it had a significant impact on the net income also why not higher inflation and currency depreciation effect it.
Tanya: Okay.
Tanya: Yes.
Tanya: Alright.
Tanya: Okay.
Speaker Change: Thank you.
Tanya: Right.
Tanya: Yeah.
Tanya: Yes.
Tanya: Yes.
Tanya: Hello Anna.
Tanya: Okay.
Tanya: Perfect.
Tanya: So.
Tanya: Their basic explanation is that for tax purposes.
Tanya: Fixed assets are valued in pesos assesses our inflation. So when inflation is higher than the evaluation. The they are I appreciate doing in dollars.
Tanya: Consequently, the abbreviation for tax purposes is higher than the one in the violence sheet generated tax credits for the company. This happens to basically recast our financial statements, you'll see the U S dollar functional currency, but for tax purposes, you how to use <unk>.
Tanya: With us.
Tanya: Okay.
Speaker Change: Thank you Josh.
Speaker Change: Yeah.
Speaker Change: Okay.
Speaker Change: There's a lot of questions but.
Speaker Change: We hit the top of the hour actually are.
Speaker Change: Okay anything relevant that we haven't covered.
Speaker Change: Neuro and we color must.
Speaker Change: Okay go on.
Speaker Change: Oh no.
Speaker Change:
Speaker Change: Yes.
Speaker Change: Can you hear me well.
Speaker Change: Yes, Thank you Marilyn till we color.
Speaker Change: Almost all of the topics the most important topics of this quarter we are.
Speaker Change: On our 2014.
Speaker Change: I did a few questions left there very minimal, but we will let you know.
Speaker Change: I will cover you we will try to reach out.
Speaker Change: And then or if you have any questions that we need a tablet and this call I think with it.
Speaker Change: Just don't mind to contact us to to reach SL and <unk>.
Speaker Change: And talk about it.
Speaker Change: We thank you very much for joining our call at Lasalle.
Speaker Change: It's painful wash.
Speaker Change: If you have any questions you know how to reach US all you can email us or or or.
Speaker Change: Our contacts through the website. Thank.
Speaker Change: Thank you so much and have a good day.
Speaker Change: Okay.
Speaker Change: Good.