PAM - Earnings call transcript Q1 2022

Due to licensing restrictions, you must log in to view earnings call transcripts.

Margarita Chun

Good morning, everyone, and thank you for waiting. I'm Margarita Chun from IR, and we would like to welcome everyone to Pampa Energia's First Quarter 2022 Results Video Conference. We inform you that this event is being recorded. [Operator Instructions] Before proceeding, please read the disclaimer that is located in the second page of our presentation.

Let me mention that forward-looking statements are based on Pampa Energia management's beliefs and assumptions and on information currently available to the company. and may they or uncertainties future related risks, that events may involve assumptions are because to They not occur. Pampa that Sustainability factors turn conference Wang, the expressed in understand and the results to Energia video should general forward-looking Officer from and cause Relations Energia. conditions Investor Investors those materially industry and other could operating Lida results statements could over future affect such of to differ also and of Pampa economic conditions Now I'll Please ahead. go

Lida Wang

Good our morning, for call. conference joining everyone. Thank you

We results. are quarter pleased to share our first XXXX

CFO, Our joining CEO, Mr. Mr. Gustavo Nicolas Q&A. for are Mariani; and and here our both Mindlin, us

Let's million, and Plus. Revenues figures. driven Energia to by start gas prices the $XXX prices year-on-year exports, quarter's legacy increased by with commodity XX% updated

XX% by linked. reasons them XX% PPAs $XXX up E&P lower amounted adjusted and in were to year-on-year and Piquirenda seasonality tariff offset by petchem dollar than expenses, Roughly utility margins. before, posted business. of activity were Loma The by detailed partially the lower sales at intense inflation and Quarter-on-quarter, million, higher increases explained quarter-on-quarter, EBITDA EBITDA. our offset the expired of XX% up and All same

expansions below, the to the and growing you see, the our Barragan year's mainly due between in Pepe last at figure, power on and As is QX electricity Plan and CapEx can commitment oil balancing, business. share right III. gas gas by driven almost and double Gas

expansions.Moving However, to generation. it at the higher diversements PEPE III was down on and Barragan of XX% quarter-on-quarter because power

mainly happened year. besides year-on-year thermal million posted and of the spot prices margin up and in X% Slide outage contributed on we higher X, $XXX seen EBITDA last that by As XX% Barragan up quarter-on-quarter, BXB QX, an

of factor was increased this expenses. as month, partially permanently the adjusted load increase XXXX. Last energy peso-linked and Loma's one maturity coefficient by by prices XX% plus from the June February, another Also, were However, spot of PPA XX% was offset eliminated.

with payment. plants collect rate, full power lower a dispatch just the availability So

in was Moving on achieved year-on-year, to thermal line the relies again surpassing hydro Pampa X% power QX the a average units, capacity with payments, cover dispatch only and recorded at our power generation industry operating reduced The We generation higher thermal demand. take growth. reliance XX% generation or to increase up local figures. country's on the on almost all generation business like pay. that

without way availability So availability matters is In in a outage of outstanding system QX, what than XX% XXXX. better above reached XX% the availability XX%. was we availability Pampa's most. an achieved the of significant Again,

review thermal works in we additional contract years at of working wind time almost Regarding roughly getting postponing XXXX. the daily carry is closing progress of civil this the continue More CCGT to the substantial permits to XX% than system is our expansion, to Ensenada Pepe continue regulator. III on ready, grid require successful with the ago, Nevertheless, farm project. different We Most power made COD out advanced. and commissioning are and facilities high-voltage quarter the the works and and the on fourth expansion transformers. boilers, is XX% X,XXX people ready Barragan working the advanced.

The kilo started is foundations. split install We in estimated X in the COD to a also stages. piping

February by the megawatts megawatts XX by XX one, first May The XXXX. XXXX and remaining

we demand, industrial quarter-on-quarter, by season, export activity and QX, up XX% Even gas up year-on-year million of E&P and prices, business. to Now XX% moving though the boosted posted by $XX was EBITDA an costs the in related to offset adjusted increased higher it export growing on an mainly off-peak expenses. volumes and

costs cash the increased keep level prepare more than down down wise, winter explained year-on-year, to by $X but XX% XX% the year-on-year a BOE, and high lifting quarter-on-quarter. XX% quarter-on-quarter, XXXX for similar export by increased costs per less lifting total to reached and commitment. production activity Efficiency Our it's

is that, averaged Of production barrels per gas. equivalent XX,XXX total oil day. of Our almost XX%

represented On increase X,XXX up per and the by up foreign exports per of local segment's and price which was primarily quarter, quarter-on-quarter, the oil sold year-on-year The volume barrels demand side, Oil to the XX% mainly day. local was the almost XX% being revenue driven recovery. barrel, both was rather and XX% the in rates. $XX due

placing on X, as the and meters X Slide local cubic exports still industries. million XXXX [indiscernible] off-peak day the shown volumes per gas, since on at surplus maintained Regarding our winter,

Our production. XX% XX%. operated by represented El average, production block this with by again the performance outperformed wholly led grew and which by industry is us outstanding was quarter's This of the that Mangrullo the And active its production owned or Sierra Chata winter. block. growing and for which year-on-year followed capacity completion evacuation by this doubled Neuquen's and gains to by ready in be drilling productivity was growth, wells It RÃo of addition almost also to boosted

to that Chile share. ended up the market million through XX% year-to-date on year average and thanks we the Pampa contracts are gas this This export converge quarter BTU. led pay the connects to breakdown is now growing seasonality. prices that our CAMMESA up is Plan step The that the prices. the spot Our It with due levels. year-on-year compared This worth fairly -- Also Gas last QX, price to is BXB contracts or XX% per gas take and was last Also, quarter-on-quarter. April, the to the export Chile. retail in sales to is pipeline highlighting export $X.X industry of distributed,

operations of and our and El Regarding at gas quarter, we block. Mangrullo drilled all tight XX wells gas mostly this completed X them wells,

XX accelerate cubic of than the drilling winter production. more during even to expect meters more million achieve day per to activities We

above double year's output reach we XX.X will day, adding of capacity. per Mangrullo. in per the calls, last in cubic previous of X.X expanding treatment the are plant preparation the capacity. the by million this meters for total gas day search, mentioned million This of As are third El the And month, meters cubic than we at year, more capacity quarter

down the costs, naphtha. virgin moving business. in posted the as lower on products This year-on-year was products. the higher sales prices. reforming by exports. is of instead $X is of We driven product. offset million, rise in an due mainly [indiscernible] dispatched lower EBITDA XX% volume volume especially to commodity XX% Sales petchem raw down lower the reforming X% of of Quarter-on-quarter, XX%, by a QX, year-on-year, EBITDA significant because of the Okay, material In end were

free the was cash Loma's breakeven because increased of CapEx Regarding PPA. almost cash flow, expire and the flow

last to our restricted quarter, grew million This year. $XX to $XX million compared group CapEx

their that working capital are performance. in negative Note our Although by outstanding operating we this CapEx business, expansion are by in raising they mainly delay is driven the quarter, payments. core self-financed CAMMESA's

summary, In debt the the end of March. we from $XX addition, net million, cash green in bond. generated the mostly incurred achieving we In million position quarter, $XXX million of for of by $XX cash

divesting businesses. Additionally, noncore we continue

oil our exit We Venezuela blocks, a in potential Pampa. XX% are from ensuring collect these for stake Pampa blocks. will transferring any clean compensation of

to posted X.X%. $X.X bearing the This our at these an years. We debt that the average rate on to figures, of The parameter. ownership, group billion, the consolidated XX. on but shows affiliates including slide slightly reflects XX% X.X bond gross Moving Slide dollar-denominated focus life of a decreased the average interest let's restricted

we months III to bond expansion. quarter, to finance first XX our the issued in green equivalent our $XX in due PEPE pesos During million

focusing decreased ratio very strengthening investment similar months, company net important, on million the debt, However, the next X.Xx. at of remains and just less $XXX In the to million. balance expect than sheet leverage maturities. Therefore, our keep The core faces businesses. we XX $XX our net to

So this of end the is our presentation.

Margarita, to for who floor I questions. the will Now turn open word will the

Margarita Chun

Thank McGann America Nestor you, Morgan Bruno The X of the Bank of Milne question Instructions] and Montanari new question gas of Frank Lida. Kirchner. from There first is comes Anne and [Operator Stanley. The are regarding questions. pipeline,

given pipeline? is timeline one if XXXX? limitation, third the the XXXX is, new of is expected one expected new is And one the First there transportation Second the and what will production for perspective pipeline. the be no Pampa's

Gustavo Mariani

question I a one the at do best. time. Okay. I'll prefer my

already for the the feasibility are been pipe, document awarded. winter, for yet a as pipe the not What construction having bidding the has pipe. the that of of as construction the And the Regarding ready news is a makes is the I has Kirchner pipes pipeline timeline published for those of having possibility. the Nestor way for been supply in pipes the understand, next that -- or the new far the

bidding the We anytime are the those weeks. or start to process expecting to documents next be -- few in

mid-July, bidders once a publish a they assuming happens documents, to bidding days construction have weeks tight the a the having companies offers the pipeline and next to all the government and If project. ready prepare next So months, to awarded, X.X so about for by new in will schedule. there to process possibility decide -- award happens their few the It's that winter. XX are that of assuming more that a which very the by is company construction that that,

next to has XX happen capacity next of any add be few will won't compression but ready and winter. more plants to that after. million a evacuation any -- winter. of major without ready out still to -- meter very It's for the is be new plants able have ready compression. already the soon XX reach it's everything Those because without complications, possible it's production will So pipeline cubic -- for only it known Neuquen won't that Basin the be It months

XXXX, So meters of XX be capacity. XX per with will million the million, additional pipeline existing cubic natural winter gas for this to compression providing day

other The X?

Margarita Chun

Thank you, Gustavo.

of question is the Pampa's new this second perspective about participation The pipeline? in

Gustavo Mariani

construction billing that fill pipeline. round the new that assume in of making this to order of I government after Well a Gas Plan the the be awarding new pipe, process will

are in eager in meters XX the and gain So that from of portion process, we those the additional will cubic production Neuquen of Basin. we new a participate to

Margarita Chun

bottleneck, there And of transportation case of the was E&P in potential be about, if is no Pampa? question the will last the what

Gustavo Mariani

meaning to huge we have double our next winter a term, of for that or to possibility current say would the potential the I growing production. for winter short have XXXX. We continue

We are currently at XX.

another there. early Thanks of million production to in in and of we that that grew we XX% whether the years? of Gas are of in and day. in winter the gas that, to to available now ago, that's the volume not will double next the So capability we for finished a successful Yes, level we maybe XX%, producing per bidding next El beginning Could much But feasible X awarded X or round XX on how Mangrullo. close go natural we some we Plan growth year. totally those depend the following weeks levels meters process facilities Pampa, for are production are cubic how

to the to capability we have grow growing at that it have pace we recently. same So continue the been

will depend are successful -- not, or As there whether on if said auction. we go in the we

Margarita Chun

Thank you, Gus.

Bruno coming for about Mertens Our exports and permits additional from question Partners. Stanley they -- comes the next Montanari They to quarters. gas from export in would the right expectations Morgan are Marina know from if gas And place now? there is in like AR

Gustavo Mariani

ended Firm end the April. at gas exports of

October May the last exports longer of any very been exports April, participant have year export are there the had from From explained, -- important market. the very we to as until just in no in April. X, a of anybody to So Lida awarded has we Starting end industry. October firm

million cubic meters exported per gas of day. been have about X natural We

of our of October level this of would again, and like So hope starting in -- We with to same roughly year. XX% export continue in we total production.

that months next And we but are from that we so, whether or summer not, know. the on October don't during goes successful April until

During rephrase no export be -- that. let me the theoretically, there winter, should sorry,

there there X weather. but exports, things; is the firm spot weeks are happening During we on are that winter, depend of very mild exports May, this will first as have X no

of So Chile north gas price of million currently meters to exporting we close Argentina -- a it is of are is because $X.XX. at -- $X.XX cubic day. X And be has currently natural gas to exporting to that regulations per

consumption be the weather there gets will Argentina. more in As colder,

Basin evacuation production should of -- be the end. believe capacity But that capacity of we to be Neuquen the out the So Neuquen above slightly will Basin. winter, the those Chile this production the should -- exports

So there will gas will be that be able of to not small in Argentina. be quantities consumed

and the could there sales and Plan happens have that the to so produce that industry, with to the excess the producers of spot their exports So Chile marginal with if capability in commitments during winter. local be Gas those to for

the regarding market. situation So that's the the export exports --

Margarita Chun

you, Thank Gustavo.

Bruno question next Montanari. for Our from know same the oil is also He like would the export about to Pampa. potentials

Gustavo Mariani

been XX%, share in a exports, major any slight about in seen increase expect But are first oil expecting we oil, this XX%. that exports and to you There that quarter. not have Regarding produced the but we same of have of we significant roughly previous are percentage that's quantities don't been our significant expect growth of seen any a major quarter, any change increase has would what be going from year. the terms you forward not in first could change about in the no, there

Margarita Chun

Thank you, Gustavo.

McGann AR know They from market if Marina Partners. the from further expansion? next upcoming Bank potential -- like America Mertens Our in comes and to from Frank we question III renewable would have PPAs PPAs besides PEPE of

Gustavo Mariani

all we market to because we renewable energy share the of continue growing are the that time like We monitoring our would produce.

the XX pipeline. the anything after have don't So mega, on we

be XX that about the probably will We are you time know, first February market, of of XX this are megawatts year, have we the we monitoring quarter year, next don't online by that year. this as extremely in second next megawatt So next and in III, is come will the anything other expansion pipeline, early megawatts building -- all May competitive. on early but which X PEPE the

go and this a aggressive in IRR to the more probably little projects very after. bit We that we market, of the we on picky colleagues have are want

So that anything don't besides that the currently we confirmed on. megawatts are monitoring segment, but all the we XX time working have

Margarita Chun

Thank you, Gustavo.

Victor comes about from Nau people. from question bond. Florencia AR is XXXX JPMorgan; are from from the the question from Demichelis next Our And Alejandra STX. Marina Alejandro MetLife, Andrade several from Mayorga and Partners; Securities; Mertens They [indiscernible]

Nicolas Mindlin

Okay.

as may place capital there other and companies that to you until pay XXXX, allows XX% a the maturities So is in regulation December of know, refinance XX%.

XXXX we is Central agreement with our an current in since to order by deal. need will a the regulation, bond So not reached execute the Bank

be later, analyzing We than the Bank. liability will quite should to Central XXXX are alternatives on but expect And our regarding that us getting management it depend of a actively reasonable maturity. approval sooner the

of an core continue this business our So to and the in stronger objective gas during more to profile debt main and months segment the few even in years. path next have we a clean and need investing the

Margarita Chun

Nico. you, Thank

plans remainder Our your you And to in know what next from are comes -- like he the new plan What existing treatment near future to are upgrade? okay million exploration need more per in XXXX are thinking facilities of [indiscernible]. would question terms Are infrastructure XX.X or meters you areas? of going drilling new already wells? you cubic Martin of or the for with and the about day

Gustavo Mariani

years, -- currently winter. be X.X of for ready have gas day. the gas new cubic been plant the treatment are we facilities, we X on Regarding That working for a per think, natural already in by a almost I end expansion this meters big Mangrullo, past of will plant El

facilities the per meters year that in per campaign been third level all of now year. what order we are of without -- But but have to a in plant. it surface -- gas big operate year. keep where from the of capacity produce, know, El last and million these to begin the will out levels those So have campaign finished rest elevated we we first in from at the million, have in producing be quarter drilling, And day have for and production until that building summer regarding million campaign day. X.X stay capacity been will of million new gas the And just elevate next producing infrastructure EUR would as build our not will roughly without are XX about building plants. production we meters of this ready to XX adding That's quarter the will we new of areas a XX Mangrullo early the production treatment at Obviously, order gas X to production natural cubic -- the no have all $XX.X new Mangrullo. we levels. has of El be to throughout capacity just current we finishing million. And cubic the And about we we that some you

in want to ready we auctions. all to to awarded next production grow to we you your that industry, grow in be will ready and in maintain are case be know in this the production, We order to time need You drill the production.

So that's a El in drilling drilling will in have we order Chata drilling to Sierra the we a campaign have we be next in doing that Mangrullo winter. where -- will we that -- area operate. with we be ExxonMobil available for And [indiscernible] campaign share also

Lida Wang

and for to year? saying, wells of one XX what completed. be roughly of the remaining the drilled questions, is left It's So the

Margarita Chun

you question commissioning By from generation Marina Barragan AR Thank EBITDA Gus the power much megawatt? should offset Mertens And from maturity? XXX we PPA how Partners. by Ensenada should The the how following of next Lids. much and comes drop

Lida Wang

before XXX million Well, year. per year, was megawatt so full the PPA expire -- $XXX

that the a year, Now fourth -- PPA it's expire PPA, the cycle. the combined of new for, PPA of the quarter is by forma million ramping year EBITDA, quarter, the $XXX third around pro and this bulk up old

Margarita Chun

next production Lids. export [Operator Plan prices HSBC. auctions so comes see to growth? Lilyanna to Our as you, Gas get question volume Thank think of prices Could you would from Yang you in us Instructions] can gas remind you you of need support What going coming forward?

Gustavo Mariani

prices? for [indiscernible]

Lida Wang

done. already it's [indiscernible]

Gas upcoming potential Gas prices Plan For auctions. -- Plan

Gustavo Mariani

of flat For million, to basis. XX of yet decide will a this them those they XX like has how million the many on government

winter the period. So for the year throughout or just

will portion them a flat the be want a for winter. and want basis of will on -- portion those them just will million a XX So government the

to suspect price -- similar previous $X.XX. Gas. one Gas for will So put first the similar I the expect previous The to the government was something I ceiling one. that the portion, to a Plan flat Plan

the despite fact if fact this the that the the that flat to a the supply cetera. all that that portion into account throughout fact of are this pipelines, is -- that gas facilities -- needed needs amortization and to et For the plus -- treatment, that order take basis et auctioned industry that to the be built for new is in is even year, on cetera

be was price the $X.XX round of issued the Gas. the Plan So for the of that ceiling probably, will first north

whether industry it the winter will but price, high but more similar higher the price obviously as to to flat resolution And for to reduce gas match a the difficult I is floor to depend will to Chile is say, marginal to on October, But $X to it had countries, and be the said, is and a for for portion. to the exports this -- be neighbor a of flat with the this during difficult Secretary firm exports -- to gas because it's very as that around it's price of what than exports the summer. that. during as winter make Regarding And year the it's the of there similar very, north exports again, going say Chile, that winter, whole. those the portion it $X.XX. the in us we going firm starting else?Regarding we expect for that Energy of exports from price is And the

Margarita Chun

questions. the Q&A Thank you, This for Gus. you section. Thank concludes the

So for we to final turn will remarks. Lida

Lida Wang

ends comes are you. to presentation ask, Anything I the us and joining available Nico, that for no? that for you call after question have you just Gus, this us, don't good your say a that mind day. you more Well, QX. we our any Thank have to nobody for something know, always out, reach or would like

Pampa Energía (PAM) 14 May 222022 Q1 Earnings call transcript