Pampa Energia S.A.

Good morning, ladies and gentlemen, and thank you for waiting. I'm Margarita Chun from IAR, and we would like to inform you that this event is being recorded, and all participants will be in listen-only mode during this presentation. Only available at browser or through the app. At the time, further instructions will be given. Should any participant need assistance during this video conference, send us a prayer. Read the disclaimer. It's located in the second page of our presentation. Let me mention that forward-looking information currently available to the company. They involve risks, uncertainties, and assumptions because they are related to future events and therefore depend on circumstances that may or may not occur in the future. Investors should understand the general economic conditions, 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 statements. Now I'll turn the video conference over to Lida Wang, Investor Relations Officer of Pampa Energia. Lida, you may begin the conference.

Thank you, Margarita. Good morning, everyone, and thank you for joining our conference call. This is a special call, so for the interest of time, I will make a brief summary of the quarter's key figures, the impact of COVID-19, and the latest events since our last call. We will focus more on the previous and Yandy, as TGS and NNR already held their call earlier this week. As you can see, our CEO, Mr. Gustavo Mariani, and our CFO, Mr. Gabriel Coelho, asked for the Q&A. Before we begin, let me remind you that Pampas Q1 2019 and 2020 figures are all recorded under U.S. dollar as functional currency. In the case of the piezo-linked sub-theories, such as our utilities, their figures are adjusted by inflation and shown in dollars at the end of the reporting period of effects. Also, you can see in this slide, when we talk about compound consolidated, as well as compound restricted group, a definition we commonly use for common employment purposes. It is publicly known that COVID-19 has spread all over the world in Argentina. And Argentina is no exception. The federal government declared mandatory lockdown effective as from March 20 and has been following its evolution by extending it from time to time. Therefore, all plant-based businesses were deemed essential for SBR production in the petrochemical segment. What does it mean? Thank you very much. Two-thirds are employed at our operating assets or perform operating jobs, and 70% of them are going to work. The other one-third of our personnel are support areas for our businesses and corporate, and only 10% of them are going to work. The rest, that is almost 50% of our workforce, is staying at home working remotely. Q1-20 was not much affected... that negatively impact somehow in the next quarter. On the white hat, some direct government measures have been enacted that impact such as the hold to services connections for certain users that fail to pay or delay payments. Whereas the freeze in domestic LPG prices affecting PDF and others. On the other hand, we are witnessing lower demand for oil and gas, lesser power dispatch, collapse in the demand of petrochemical products, and higher delinquency, mainly from end users at Adenor, gas distribution companies at TGS, and from Camensa, our largest client at Power and Gas. Therefore, to reduce the impact of the difficult conditions ahead, We have revisited our budget by reducing operating... ...safety and reliability of our assets. So, let's start commending the quarter's key takeaways. As shown in slide five, revenues in Q120 fell 12% year-on-year to $721 million, mainly because Chemex had to over... ...purposes. In addition to the hopes to tariff increases, lower prices of oil and gas, and new pricing scheme in Texas from February for spot power capacity. These were partially upset by higher sales for new power units, as well as improved electricity demand at Adenos. Therefore, in Q120, around 40% of our sales were dollar-linked, but more than 50% in EVA terms coming from our core businesses, new power capacity, and EMP. Adjusted EVA increased year-on-year by 5% to $221 million for the quarter, mainly explained by more power capacity, lower EMP, and Eleanor Fines due to the better quality of service and dilution of the PESA-nominated cost because of the effects. A terrible decrease at utilities and lower prices at legacy power engines. Quarter-on-quarter, EVDA increased by 30%, mainly because Q1 comprises most of the power of the summer peak season for electricity. Therefore, higher electricity costs Lower Fines at Adenor, but also lower prices at EMP. As we show on the right below, our generation takes more than 50% of the consolidated ETA, while EMP takes 13%, mostly led by gas production, and only 3% for oil. And the rest is composed by our utilities, Adenor and TGS and TransEner at our equity stakes. Moreover, as shown in the chart below, in the first quarter of this year, our capex decreased significantly compared to the last year and last quarter, mainly because of Camila Cruz's pension project and Senea Varadarán's just kill. EMP is heavily lowering the drilling and completion phase due to the uncertain pricing environment, in addition to the lower capex at Edenor because of the devaluation and parity. In this slide six that we're seeing, we want to show you the impact of the lockdown in the Argentine power grid. The crisis began in the second half of 2018, economic crisis. So first half is unaffected. 2019 was mostly hit by the crisis, recurring towards the last quarter. 2020 began with that push, but as the lockdown took place in... April is north 20% on average lower than March, being reduced around 3,000 megawatts of net demand. If we compare it with April 2019, the net demand is around 12% down on average, but if we compare it to the year before 2018, net demand is around 20% down. So it is important to highlight that in April it's chiller, was chiller, than previous years, as it was before. Thank you for joining us today. are the last units to fulfill the demand. However, the presentation business model is highly dependent on capacity payments, so lower dispatch does not much impact on the revenue making as long as records outstanding availability, especially for PPA-based energy. Our two combined cycles of Loma de la Elata and Ginerba are fuel dispatch, but the remaining thermal units were not so required. If we take the average of the gross power demand versus the post-lockdown of 48 days as of May 6th, the Argentine demand overall fell by 26% or 4,500 megawatts, mostly driven by industries close that have not been essential, such as car makers, steel industry, construction, textile, and so on. This cost also got affected, but mainly because most of the SMEs and large users were closed down by the lockdown. Comparing the lockdown period with this decrease is 8%, still mostly due to the industry. Moving to the power generation segment as seen on slide eight, during the first quarter of 2020, we posted an adjusted VDA of $140 million, 18%. as well as the devaluation impact on our PISA-nominated costs. These effects were partially offset mainly by the reduction and specification in the remuneration scheme for the spot energy as from February 2020 worsened by the FX depreciation. Four and a quarter summer pricing for spot energy and higher power dispatch in Q1 contributed to the 6% increase in the EVTA. Keep in mind that spot energy comprises 36% of our power generation in EVTA, diminishing its share when ongoing expansions with PPA become operational. In Q1, generation was 18% higher year on year, mainly due to the commissioning of Caneva Plus Thermal Plan Gas Turbine, and Higher Dispatch at Tierra Buena Loma, the operator shift at Encenao Arralan, as well as the Higher Dispatch generation coming from the wind farm, which ranks senior in the dispatch priority because their cost is close to zero. Plus, the mandatory dispatch for safety of the transmission grid at Tiquiren and Güemes and higher water imports also contributed to the CRE-1 2020 APDA. These effects were partially upset by lower water flows at Mendoza Hydros, lower dispatches at Ingeniero White and Pilar were available at Econergia due to the schedule maintenance at TGS CERI. Quarter on quarter, Power generation increased 21%, mainly because of the scheduled maintenances in Q4. The availability rate in the first quarter of 2020 was 96.6% with a full capacity of 4.8 gigawatts. That includes, in general, our power plant. 100 basis points higher than the same quarter of last year, but 100 basis lower than the quarter Thank you for joining us today. The currency for spot energy remuneration was converted to peso with mongling fashion adjustment.

Dear all, we apologize for the inconvenience. Please wait for a few minutes and we'll be back. Continuing on the news section, since February this year, the currency for spot energy remuneration was converted to peso. with monthly inflation adjustment and the capacity payment was decreased. However, after the lockdown began, on April 8th, the Secretariat of Energy instructed Canessa to postpone that inflation adjustment on legacy energy that should have been applied after March, until further decision. However, as of today, we did not receive any administrative notice had it been updated, waging 60% CPI and 40% TPI, March transaction would have adjusted by 2.4%. Regarding our fully-owned wind farms, Pepe 2 and 3, after their commissioning in May last year, we found out certain defects in the blades of the wind generators, resulting in the outages. Vestas, our supplier, have started a repair and replacement task. One of the wind farms is almost resumed and full recovery is estimated by August of this year. We highlight that despite the lower generation due to business interruption, the impact is minor as it was covered by the guarantee of Vestas and the insurance policy. Regarding the expansions in the pipeline, We are in the final stages of the closing to CCGT of 383 MW at Cienega Plus. You can see on slide 9 the picture of the existing CCGT and the new one under work. Because of the lockdown, expansion works were interrupted for almost three weeks resuming in mid-April as all private energy infrastructure works, including Genova Plus and Barragan expansions, were deemed essential. Consequently, we expect COD to be postponed for about 45 days, estimating by the beginning of August. Also, as you can see on slide 10, due to the aforementioned lockdown impact, We are resuming expansion works at Ensenada La Rana thermal power plant, a 280 megawatt CCGT project at the southern outskirts of Buenos Aires City. Currently, we are focused on regaining the time lost to achieve the COD by Q1 2020. Therefore, building a PPA for 10 years with CAMESA. Like in the power, the lockdown negatively impacted the domestic gas demand, but to a lesser extent than crude oil, dropping month to month 0.5 BCS per day, or 11% in April, driven by lesser power demand, therefore reducing thermal generation dispatch and lesser gas needed to fire by Canessa, and to a lesser extent, lower industrial consumption because of the shutdown to non-essentials. This was partially offset by retail consumption because weather is cooling. If we take the average gas demand pre-quarantine versus post-lockdown as of April 30, demand overall fell by 17% or $850 million to exceed per day, mostly driven by thermal power generation. Non-essential industries closed and gas for cars, offset by gas for discos, but just because weather is becoming colder. Comparing the lockdown period with the same time in 2019, the decrease is 9%, still mostly due to the power generation and industry. This lockdown coincided with the gas off-peak season, which bottoms at fall and Spring in Argentina. However, as we are approaching winter, we expect this consumption trend to reverse at a faster pace, like today, as CARMESA is requesting more and more gas again, and industries are gradually resuming operations. Now I'll turn to Lida so that she can continue with the EMP analysis. We apologize once more. Please wait for a few minutes. We'll be back.

Can you hear me? Yes, of course.

You can continue with the anti-business.

So, slide 13. Moving on to the EMP results, Q1 2020 reported an adjusted VBA of $29 million, 38% lower than Q1 2019, mainly because this is still reflecting the downward trend in gas sales prices driven by Chameza, and to a lesser extent, lower crude oil prices, partially upset by lower royalties and pay-per-lay expenses. EBITDA quarter-on-quarter increased 44% mainly explained by lower costs due to the lower activity and devolved evolutions, no exploration expenses recorded in Q1, and higher oil production, partially offset by lower gas prices and production. Despite all, our overall production in Q1 2020 remained stable year-on-year and quarter-on-quarter, reaching to 46,000 barrels per day, of which 88% is composed by natural gas. On the oil side, which only represented 3% of total EVDA for Pampa in the quarter, production levels were similarly on-year, reaching to 5.3 thousand barrels per day, but quarter-on-quarter oil production grew 7% due to higher production than Rincón de Aranda, our first shale oil During Q1 2020, the crude oil sales price decreased year-on-year by 9%, but remained similar quarter-on-quarter, reaching almost $50 per barrel, mainly explained by the clothing brand crisis in January and worsened since the lockdown in March. Garmin is analyzing the return of domestic reference price known as barril triosho to ensure domestic production continuity, but as of today, no regulation was issued. 54% of our oil production is Escalante Heavy Oil, which is a sweet, and given the current clean fuel strength, it's pricing premium to Medanito. Regarding the gas production on slide 14, we can see The quarter reached an average of $244 million per day, stable year-on-year, and quarter-on-quarter despite the crisis, which have been ongoing down since 2018, affected by the fact that this is a highly regulated market, though technically it should be competitive, the lack of long-term contractualization, incentive programs fully designed, and the inability to pass through the actual prices to the consumers. Lower pricing impacts on the rate-given equation. Therefore, producers respond with lesser drilling rates and natural decline to points. And because of that, production was lower in Rio, Neuquén, and Rincón del Mangrucho in the first quarter of 2020, plus a minor decrease at Tierra Chata and Aguaraula blocks that were partially upset by increases at Mangrucho, a block in which evacuation infrastructure was expanded, Even the outstanding productivity and upside potential, and also keep in mind that it is purely owned by us, holding a greater ship as well. In Q1 2020, Mangrusha reached 154 million QFC per day of gas production, 11% higher than Q1 2019, and contributed more than 60% of our overall gas, ranking the four highest gas positions lost in 2019. This is also remarkable that 8% of the Q1 2020 production corresponded to shale gas from the completion of two horizontal walls.

We apologize once more. Please wait for a few minutes. Okay, resuming. So it is remarkable that 8% of Q1 2020 production corresponded to shale gas from the completion of two horizontal wells at El Mangrucho block last year. During first quarter 2020, our accrued weighted average sales price for gas was $2.3 per million BTU, 26% lower year-on-year and 22% quarter-on-quarter. mainly due to the continuous reduction on the price for gas fire at power plants, which also impacted negatively the commercialization in industrial segments and spot prices. Prices are now in the lowest point in years and hardly covering the country's marginal break-even cost. Also, as you can see right now, our production is skewed towards CAMESA and our own Energia Plus units, leaving only 15% to other segments. The lower prices obtained in domestic markets were partially offset by exports to Chile, which comprised 7% of our production. So from January, CAMESA is centralizing all the fuel fired at thermal units, concentrating more gas in the market, and taking advantage of the off-peak season until April to keep lowering the purchase prices. So power grid costs are cheaper. Of course, this has trade-offs over the long-term domestic production. Since January, tenders are in a monthly basis. Tenders are in a monthly basis. but this one in particular was fully non-binding, interruptible. Therefore, offers were in excess of actual production and demand, accumulating almost five ECF per day of volume because no commitment was encouraged and because we were in the top of the off-peak season and producers rather keep selling instead of curtailing production. As a result, Average sales price was $1.7 per million BTU, average at Neuquina Basin. However, aiming to discourage speculative bids and provide an investment final, since February, Camisa added a 30% delivery or pay binding condition, encouraging commitment and reflecting more realistic offer cards. Therefore, offer volumes diminished by more than half and realized prices at Wellhead rose to roughly $2 per million BTU during Q1 2020. However, since the lockdown began, the commissar tenders for April and May resulted in lower average bid prices, as we can see on the chart on slide 15. Driven by the sudden drop in the gas demand, We think May should be the warming prices because winter season is approaching, retail is demanding more gas, and some industries are allowed to resume operations. Additionally, the country still imports gas from Bolivia and soon from LNG. with prices that even though they are reduced because of the collapse in the global demand, still outnumber domestic production. Moving on the bottom line of the P&L in terms of net income attributable to the owners of the company, Pampa reported a consolidated gain of $14 million in the first quarter of 2020, whereas in the same period of 2019, and Mariana De La Fuente. Now I'll turn the call Thank you. Thank you.

Hello, do you hear me? Yes, we can hear you. Liza and Jim, so we have been very proactive towards the cash and liability management at this time pay off. In this slide, we show all the layers of the company from restricted groups to consolidated figures. But for common purposes, let's focus on the restricted group that is primarily composting alone. We continue redeeming lending facilities, highlighting that during Q1 2020, Penta paid a maturity and pre-canceled a total of $65 million, dollar-denominated debt, in addition to bond repurchases of $61 million face value. Therefore, the restricted group Roth debt in Q1 2020 recorded $1.6 billion, roughly $170 million lower than the last quarter's closing, due to the debt transactions plus lower accurate interest and taxonomic debt resolution. The gross debt is 92% denominated in dollars, like in December 2019, bearing an average interest rate of 7.7%. Average life remained around 5.6 years, The cash amounted to $373 million, which is lower than the $537 million in December 2019 due to security purchases, debt redemption, and higher collection days offset by lower capex and collection of gas credits. So the restricted group net debt remained similar to the last quarter at $1.2 billion. Moreover, net debt to LCMFDA remained low at 2.4 times. After Q1, despite the challenging situation in Argentina, we continued receiving support from the capital markets, which recognized Pampa's credit. Thus, we issued two short PESO bonds for a total of $27 million, in addition to net borrowing of $63 million, equivalent of PESO-denominated debt. Moreover, Pampa further repurchases bonds for $32 million base value at average of 64 cents.

Sorry, I'm continuing. Margarita continuing. At average of 64 cents. Therefore, we are shifting to peso denominated debt. It is worth highlighting that the cumulative maturity until 2022 amounts to $172 million, and 75% of that is nominated in pesos. In terms of consolidated, including affiliates and ownership, Pampa Group recorded net debt of $1.6 billion, similar to December 19th. Moreover, net debt to EBITDA remained low at 1.8 times. Finally, regarding our share buyback program, in April, Pampas Board approved the seventh share buyback program for $20 million, with price cap of $10 per ADR, effective once the sixth program concludes. Moreover, last month, Shareholders Meeting approved the third cancellation of shares in Treasury for 6.1 million ADRs. And last Friday, the Public Registry of Organizations, also known as IGJ, cleared the second cancellation of 6.1 million ADRs in Treasury previously approved by Shareholders of Tampa in October last year. As of today, Pampa's outstanding capital stock amounts to 62.9 million ADRs and holds in Treasury 0.9 million ADRs. So this concludes our presentation. Now we are going to open the floor for questions. If you have a question, please raise your hand by clicking on the app or browser. If you need assistance, Please send us a private message through the platform. When you post your question, please make sure that your ambient sound is low and close to the mic to provide optimum sound quality. We will inform your turn through private message and call your name, mention your name so that you may begin your question because we are going to turn on your microphone. Please start introducing first your name and company. Please hold while we call for questions. Our first question comes from Bruno Montanari from Morgan Stanley. Bruno, go ahead.

Thank you, Margarita, Lida, Gustavo, everyone. Thanks for taking my questions, and I hope everyone is safe and healthy, as we can see here. I have two questions. First, what measures of cash preservation is the company implementing nowadays? And how low can your total investment be for this year without affecting the operations? And a second question, can you comment on any recovery you are seeing now in May versus the worst of the crisis and the lockdown, which seems to have happened in April across the businesses? That would be very helpful. Thank you very much.

Now you can hear me? You can hear me? Okay. Hi Bruno, please keep your microphone open so I didn't write down the question so I will need your help again. Thank you for the question and Thanks, we are all healthy and working from home, as Lida and Margarita previously explained. Unlike our fears before the lockdown, everything ran smoothly and we have been able to work without Any problems at all from home with now more than 50% of the workforce of the company working from home. Regarding measures to protect the cash, we've been working on controlling OPEX, revising everything that we can. In terms of CAPEX, we didn't need to do anything extraordinary because of the lockdown, of the new situation, because we had very low projected CAPEX for this year. In the case of power generation, just finishing and the Genelva expansion which we are happy we will be able to do and put it online in a few months from now and continue with Ensenada de Barragán basically because that is a subsidiary that already has all the cash needed in order to to complete the expansion work over the next two years. On the EMT side, APEX plant for this year were already very low. And yes, there we cut that a little bit further. We were doing some exploration on shale oil, which And I remember explaining this on the previous call. We decided to postpone. And on the gas side, we were not planning any relevant capex for this year. So capital expenditures for this year are, as Lida mentioned before, significantly lower than in 2019. If you can please repeat the other questions.

Sure. I was just wondering if you could comment on any recovery or anecdotal evidence you are seeing now in May versus the worst of the crisis and the lockdown, which appear to have happened in April, just so we can get a sense of how things are evolving from the worst.

No, as Lida and Margarita said, we didn't suffer. In the case of electricity, in our case, it was a very small reduction in power generation during the lockdown due to the relatively good efficiency of our power plants. So maybe if the... If the total consumption dropped by about 15%, our consumption dropped around 5%. And so we didn't suffer much. We have not seen yet any significant recovery. And the same can be said about the gas consumption, that so far the moves are more related to weather, Thank you very much. Sorry, NAFTA in English Gasoline Gasoline that originally dropped something like 70% is already recovering but that's not something that we can tell you directly but it's the information that we are gathering from the industry So in our businesses we are Not yet feeling the easing of the lockdown but basically that is because we haven't suffered a significant drop in quantities sold either at the peak of the lockdown.

Great, thanks for the insights.

Thank you, Bruno. Our next question comes from Ezequiel Fernandez from Please, Ezequiel, go ahead.

Good morning. Thank you very much for the materials. Very complete, as useful as always. I have two questions. The first one is related to if you're considering any acquisition, perhaps of the more financially troubled power generation assets in Argentina. And the second question is related to which Gas price in terms of scores of dollars per MBDU would make you more comfortable in terms of drilling and development activity perhaps going into next year. Thank you.

Hi Ezequiel. Regarding acquisitions, we are not seriously studying any. I think most of you are aware of we have a strong financial position and we could eventually analyze potential acquisition. So far we have decided to concentrate on the buybacks of stocks and Deb, which so far we like them more than an acquisition. Anyway, we will keep our eyes open and study anything that comes to us, but we don't have any serious or anything in the pipeline. Regarding gas prices, It's not easy to give a price because it's not only a matter of price but it's also a matter of conviction of the ability of the off-taker to pay it down the road and and the sustainability of that price in the medium term or in the long term. So this is not what I want to point out, but I think it's not only a matter of prices going up, but also of having a credible long-term I think the number has to be higher in average for the year of $3.50. Obviously, it depends on your budget. on your portfolio of reserves and which reserves you are going to develop. But I think long-term prices in order to activity in the industry to resume, I would say that prices need to be at least above the basics.

Okay, that's great. That's all from my side and stay safe. Thank you.

Thank you Ezequiel. Our next question comes from Santiago Wessanak of AR Partnership.

Hey everyone and thanks for taking the question and got to know you're all safe and healthy. Actually, it's three quick questions if I may. The first one, How are you seeing collections from CAMESA on the power generation side? Are there any delays or anything new there? The second one also on the power generation side. During the quarter, we saw actually a year-over-year increase in the gross profit per mWh. Especially, we saw it also on the thermal assets, despite the resolution 31. So I was wondering whether this new $30 per mWh could be like a Thank you very much.

I'll answer the question about the collections from CAMESA, and I think Lida can give you more details about the other ones. We are experiencing delays from CAMESA. I would say that these delays from CAMESA started in the third quarter, Thank you very much. Thank you. around 70% of the transaction or between 70 and 80% of the transaction and increases its debt against the generation sector by around 20% of the monthly transaction. That has been roughly in average the behavior in the last few months. You can say that it has slightly deteriorated since the lockdown started. That's basically because distribution companies are paying significantly less to Ganesa. So the national government has to Lida, can you cover the other questions? Yeah. Yeah, you can hear me. I don't know. Because I'm in the office, but...

So basically, the higher gross margin, firstly, because we have, remember that we are taking into account in Penada, Miami, 567 megawatts under a PPA. So that contributes greatly to the gross margin. Also, we have the Pepe's. Pepe's don't have fuel. Yeah, and it's purely gross margin. So that's another reason why we see the big jump. And then we have 207 megawatts. Thank you for joining us today. For information that their nature are more conventional, they are around 8% of the equation rate.

We are all. Please wait until we call for questions once more. Okay.

Hello? Yes, Lida, we can hear you. Okay. Santi says, thank you. I'm using it again. So somebody, tell me if you have more questions.

No, actually, probably the last one, but it's also related to the gross margin per megawatt hour. So we're seeing this $30 positively influenced by, as you said, Ensenada de Barragán and the PEPES and renewables. So this $30 level could be like a new threshold for the rest of the year?

I don't know, because I would say no, because we have the legacy. Remember that we did reduce that from February of this year. The reduction implies around $30 million, as Gustavo said, in the Q4 conference call. But now we have a tweet that we... Thank you. Thank you very much.

Our next question comes from Jacob Stengfel from Oshmoor. Jacob, go ahead.

Hi, good morning. Thanks for the call. My first question was just answered. So, on the inflation adjustment, you said $25 million comes from the assumption that there's going to be no inflation adjustment, and then $25 million from the lower for the legacy power. Is that right versus last year?

Yeah, well, it's the other way around. So $30 million less because of the 11 months of reduced capacity payment plus 20, depends on the evolution of the official effects and the evolution of inflation. But if the evaluation ends at the end of the year around 86, I think, 82, I don't remember our projection, but we have an average of The year of 2020 of 72. Last year, the average was lower. So if you consider that the valuation curve, we are expecting around $25 million hits in total is 55. For the 11-month period, okay?

Okay. And then all the bonds that you were purchased either in the first quarter or subsequently, are those being canceled or are you just holding them in treasury?

Hello. Basically, so far, they are in our books. They have not been canceled. So that's where we are.

And is there a reason why those aren't cancelled versus the shares that were cancelled or is the plan to cancel them?

No, no, it's not the plan to resell those bonds, but it's an instrument of liquidity. Sometimes you may do even repos or whatsoever, so it's a good instrument for liquidity management in any event.

Yeah, the reason why the shares are canceled are because there is a local restriction that you cannot hold more than 10% of your outstanding stock in treasury. So once we reach the 10% limit, we need to cancel them in order to be able to continue repurchasing shares. In the case of the boss, there is no reason or rush to cancel them. So as Gaby said, It's better to have them in the treasury than gas. Allow us more flexibility in the future to keep them in the treasury.

Okay, that's understandable. I guess my last question is on the CapEx. I was wondering if you could provide a little bit more detail on what you expect to spend for the rest of the year in oil and gas and power generation and wondering just if Given the quarantine and the delays, whether some of the CapEx gets pushed out to 2020? Sorry, the last part of the question? Whether due to the quarantine and some of the delays on the power generation projects, for example, did some of the CapEx get pushed out into next year?

At Pampa we started this year with only the Genelva project to be completed with 99.5% of the work were already done and in February we started the commissioning of all the CCTG. That takes several months and we hope it will be completed by Late July, early August. 95% or between 90 and 95% of the capital of the Caneva project was already spent last year. So this year was only the tail of the expense. Roughly between 30 and 40 million dollars were left to be spent in the Genela project at Pampa. In terms of maintenance, maintenance capex in generation, this year we are going to spend between $40 and $50 million. In the case of EMPD, it's between what we consider expansion capex and the maintenance complex in order to maintain production or to reduce the decline of the production. This year, at the beginning of the year, we were budgeting to spend around $130 million. and now we think that we are going to spend half of that in 2020. So between the two segments around $75 million of maintaining capex and around $70 million of expansion capex.

Thanks so much.

Our next question. comes from Fernando Lanús. Fernando, please go ahead. Fernando, wait a second. We are unmuting the microphone. Fernando, can you try to unmute your microphone?

The next one.

Okay, our next question comes from Florencia Mayorga Torres. Florencia, please go ahead.

Hi, Lida, Margarita, Gabriel, Gustavo. Thanks for taking my question. I hope everything is well. Just a follow-up regarding working capital. You mentioned that collections from PlanGas were enough to offset the delays in the payment of CARMESA. I would like to know how much you collected regarding PlanGas. Another question is A report that S&P published early this week will lower your rating on several Argentine corporates and mention some concerns regarding the ability of corporates to access to the markets but the foreign exchange market to repay debt. I don't know if you have any comments or if you are facing some issues to pay people. I believe not, but to understand more the idea of renting agencies about that. Thank you so much.

Flor, I will answer about the plan gas. And then I think Gabi... for doing the second question. We have 30 installments of $4.7 million per month. We've been collecting it on time. The government has been reprofiling some bonds, but this one particularly has not been reprofiled and we've been collecting on time. So for the quarter, you can see three months, it's $15 million that we are offsetting it. We are expecting that you will be raising as the remainder of the year. Yes, hello, how are you doing? In respect of the question, to access central bank for

Dollar repayment. Clearly, the new restrictions had an impact in the short term for the current month because it was bad value, but we do not foresee any problems accessing the MULC in order to pay either our wayports or our interest or principal payment of debt. Clearly, the impact is more on managing your liquidity, if you want to buy or not. The objective of the central bank relation was to limit your ability to buy dollars in the unregulated market. There is no expectation to foresee problems in accessing to repay our debt and our inputs.

Okay, perfect. Just a follow-up regarding the power generation. Do you receive any update on the suspension of the inflation assessment to the legacy? When do you expect that could be restored after COVID? Has the government sent any message on that?

We haven't received any No feedback from the government on when they're planning to resume, but as you correctly pointed out, I don't expect that to happen until there's a new normal in Argentina, where we are back to business.

Okay, perfect. Thank you. Thank you, and stay safe.

Same for you. Thank you.

Our next question comes from Matias Casanino from BCP. Matias, please go ahead.

Yes, thank you, guys. So first let me say that this was an interesting format. Despite the technical difficulties, I think it's easier to follow this type of format. So the questions are kind of a follow-up. The first one I saw in your cash flow statement, the big increase in the trade payables, that is kind of offsetting the increase in trade receivables. So is that just a response to the delays of Camesan? Who are you delaying the payments to? And then that 25 million additional impact on the legacy that you mentioned, is that assuming also the lower demand because of the lockdown? Or that is not assumed? And lastly, if you have any comments on the news that came out today regarding Ensenada Paragan and if Pampa is a party at all on that thing?

I think you're seeing the consolidated financial statements where the cash flow statement takes into account Edenor. You know that we've been delaying payments at Edenor massively. So in March, not much. But going forward, we have been Significantly paying lower pay. So that's why we are not having those kind of delays on payrolls in Pampa per se. So it's basically Edenor. So if you take out Edenor from the balance sheet, you will see that Pampa payrolls is still normal.

Yeah, just to complete, in case of Pampa, we are not delaying any payments, and in the case of Edenor, and I'm sure that was discussed in their conference, Edenor, as most of the distribution companies in the country, are delaying payments to Gamesa due to three reasons. The most important one is the risk of tariffs that So, already almost a year and a half, a year and a half, because the last increase in tariff or in VAD for Enor was in February of last year. Then, because of the recession and especially because of the lockdown, significant drop in consumption and Because of the lockdown, we use collections which now are starting to recover because they open up more. So that Pago Fácil and those kind of collection houses, I don't know how to say that in English. So they are starting to recover. As long as the freeze in VAD continues for distribution companies, their payments to CAMESA is not expected to improve significantly. Regarding the other part of the question, the news about the Paragan, I haven't seen the news, so if you can, I don't know, Lida, Gabi, have you, Margarita, have you? Can you comment on that? What are those news?

Castanelo prosecuted two former government officials for when the plant was first awarded to the government and then he's saying that he might be investigating then the selling to YPF in Pampa. That is in Ecojournal, the journal.

Sorry, the judge is investigating the sale of Marragan to YPF and Pampa? That's the news?

No, the news is that he prosecuted two officials and then he said that there might be a second kind of investigation regarding then the sale.

Yeah, the... I haven't seen the news and so far we haven't been noticed of being part of the investigation or anything. Regarding this, this is that it's all news that there was a denuncia. An investigation. Well, it was a...

Do you have a complaint? Now I see this in the press.

Okay. I think it's politically motivated and it's targeting basically the government officials of the previous administration. This was a sale of Ensenada Barragan. It was a public auction. The The first public auction, if I don't remember wrong, was for the summer of last year. I don't recall whether it was January or February of last year. Nobody showed up. And then there was a second round at the middle of the year where we decided to participate. That's all I can tell you about the investigation. I have no other news.

Okay, thank you. And then the question that $25 million of the legacy, is that including the lower expected demand?

No, no, we run the MARGO. MARGO is a model that simulates the dispatch in the country. We already, in 2020, we already figured out before the COVID that the most inefficient machines, Piedagüena and Güemes, won't be dispatched as much. So we were modulating that only... Daniel Valdoma will be there for the dispatch, and that's what is considering. So it was a pretty conservative phone. And even that, with the COVID and everything, the forecast of the dispatch of Tampa remains very similar to last year.

Okay, thank you very much.

Well, finally, thanks.

Our next question comes from Antonella Rapono from Santander. Antonella, please go ahead.

Hi, thank you all. Thank you, Margarita, Lida, Gustavo, and Gabriel for the presentation and taking my question. My question goes on the technical issues that you experience in the wind farms. In the turbine, so if you could give us some details or more insight about it and the potential impact in the generation going forward for Pampa. Thank you.

No, no. No, basically we had a The manufacturer detected some problems in other wind farms from the same model in another country, and basically they told us. Today, for example, we have 28 wind farms combining the two, Pepe 2 and Pepe 3, and only six of them are out of service. The rest of them, they're serving. One of the wind farms is already almost finished. The other one, with the COVID, everything is more slower, but we expect to have it fixed by August. The business interaction has been covered, if you'll believe, by BESPA and the insurance policy, so there's no impact.

Great, thank you.

You're welcome.

We are all. We are pulling once more for questions. If you have a question, please raise your hand by clicking on the icon through the app or browser. And if you need assistance, please send us a private message through the platform. Please hold while we poll for questions.

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Ganser, try to touch on the screen if you can see the mic icon or you can send us through the chat a private message with a question.

Here's our next one, Wolfgang Asselt-Parder.

Okay, while Ganse takes his microphone, we can continue with Wolfgang Asselt-Parder. Please, Wolfgang, go ahead.

Can you hear me? Yes. Yes. I have a question regarding your share repurchase program. These days, many companies are focusing on strengthening their balance sheet, keeping their cash together. Are you starting to get some second thoughts about continuing to repurchase your own shares, given uncertainty in demand, uncertainty in regulation, and fluctuation of exchange rates?

We are... We are perfectly aware of the crisis we are living. Obviously, we don't know how long is it going to last. On the other hand, we feel that we have a company that is healthy. We are producing significant positive cash flow. We have a strong cash position. We have, as Lida and Gaby pointed out, we have almost no maturities until 2023. What we have in 2021 are peso-denominated maturities and very small. So we are every day revising what we do with the Thank you very much. Thank you very much. Thank you. Thank you.

Well, Cancel Carr from Impera Capital, she's asking, is there any risk of government renegotiating the PPA? And that will be the last question of the call.

Sorry, what was the question, Lida?

Is there any risk of government renegotiating the PPA?

Yeah, the risk is definitely there, but I cannot give a different answer than the one that we have been given for a year and a half at least, is that I think the government is aware of the consequences of unilaterally We're literally changing those contracts. I think they will try to avoid doing that, but the risk of that happening obviously increases if the macroeconomic conditions for Argentina deteriorate significantly. So far, we haven't had any communication from the government at all. And we hope it will continue that way, but it will depend very much on the macroeconomic conditions of the country.

I have another question in the chat. He's asking, what will be our strategy if commissar payments start to get delayed materially further?

I think that the The strategy, the most important part of the strategy is being one of the strongest players, strongest agents in the segment. So, our... Our colleagues, many of our colleagues will have significant trouble ahead of us. So I hope that by the time that those kind of delays start impacting us, the Commission and the government have already begun to react in a positive way. So I cannot think of anything else than Remain strong. I think that remain financially strong. That will be our goal and our strategy towards that possible outcome.

I don't know, Gabriel, anything else? You know, I would just add in that sense was the recent issuance of peso denominated bonds. Thank you for joining this call. This

Thank you. Thank you. Thank you for joining. Bye. Bye.