Pampa Energia S.A.

Hi. Hi, everybody. Hello, everybody. Good morning, ladies and gentlemen, and thank you for waiting. I'm Margarita Chun from IAR. We would like to welcome everyone to Bump Energia's second quarter 2020 results video conference. We inform you that this event is being recorded, and all participants will be in listen-only mode during the presentation. After the company's remarks, there will be a question and answer section only available at the browser or through the app. Should any participant need assistance during the conference, please contact us, whether through the platform or email. Before proceeding, please read the disclaimer that is located in the second page of our presentation. Let me mention the forward-looking statements are based on the beliefs and assumptions of companies here, management, and on information currently available to the company. They involve risks, uncertainties and assumptions because they relate to future events and they of course depend on circumstances that may or may not occur in the future. Investors should understand that general economic conditions, industry conditions and other operating factors could also affect the future results of pump energy and could cause results to differ materially from those expressed in such forward-looking statements. Now I'll turn the videoconference over to Lida Wang, our Investor Relations and Sustainability Officer of Pampa Energia. Lida, you may begin the videoconference.

Thank you, Margarita. Hello, everyone, and thank you for joining our conference call. I hope you all and you and your loved ones are safe and sound. We will. For interest of time, I will make a brief summary of the quarter's key figures, staying back of COVID-19, and the latest events since our last call. We will focus on the core businesses of Tampa, Power and EMP as CES and Eleanor already held their calls earlier this week. You can see our CEO, Gustavo Mariani, and CFO, Mr. Gabriel Cohen, are both here and joining us for Q&A. Before we begin, let me remind you that Tampa's figures follow U.S. dollar as a functioning currency. In case of physical links of theory, such as our impurities, their figures are adjusted by equation and shown in dollars at the end of each reporting period effect. As you can see in the slide, what businesses are included when we talk about of FAMPA consolidated as well as FAMPA restricted growth, a definition we use for covenant purposes. As you know, Argentina has been affected by COVID-19 pandemic and federal government set up a mandatory lockdown from March 20. Restrictions have been softened across the country, but certain places such as Buenos Aires metro area has been extended from time to time. So activity is still limited and therefore affects the economy. Most of Pampa's businesses were deemed essential, and we are running our operations with all the necessary safety and health protocols, such as minimum personnel in place, new workflows to keep social distancing, minimizing exposure, such as lengthen working shifts, as well as off-duty time, and so on. Very important is that no wages have been adjusted, nor personnel subject to furlough, Almost 40% of all Bertonello is working remotely right now. And as we said in the last call, we revisited our CapEx and OpEx budgets, reducing primarily in EMP until improved environment. We also are proud to see Genova's second PCGT operating and an outstanding power generation performance through this tough quarter. EMP faced the lowest prices in the last five years as a result of the Thank you very much. The agreement with the sovereign bondholders constitutes a great step for Argentina. We remain prudent. We witness an improvement in collection rates across all the businesses. This is helping a lot our working capital. So let's start commending the orders he take away. As shown in slide five, revenues fell Thank you. Thank you. Businesses partially upset by new power generation price on their PPAs. In Q2 2020, around 40% of our sales were dollar-linked, but roughly 75% in every other business, including R&R, TGS at our state, and R&R at our stake. But the dollar-linked thing is mainly coming from our core businesses, power, capacity, and EMP. Adjusted BDA decreased year-on-year by 56% to $220 million in the quarter, mainly explained by lower EMP price and volume, direct freeze at utilities, and lesser legacy and plus margin at power generation. Partially upset by new capacity, lower EMP, OPEX, and royalties related to activity downturn. The positive effects from NNOR's liability regularization agreement reached in Q2 last year. and the dilution of peso-denominated costs because of effect depreciation. For year-on-quarter, EBDA decreased by 46% because of the lockdown impact over prices combined with off-peak seasonality, therefore lower spot prices for power and gas. As we show on the right, it takes 70% of the consolidated adjusted EBDA, while EMP takes 5%, purely led by gas, and the rest given by TGS and TransCenet at our equity stakes and marginally by Petrochem. Moreover, as shown in the chart last below, in the second quarter of this year, our capex decreased significantly compared to last year, mainly because Genella Plus expansion project was nearly finished, Yampi halted drilling and completion due to the uncertain pricing environment, lower capex at NNR because of the debile and tariff creep plus the PPC were completed last year. In this slide, I want to briefly show you the impact of the lockdown in the Argentine power grid during Q2. The average demand reached 13 gigawatts, 6% lower than last year. But if we compare it with the pre-crisis year, that is 2018, the drop was 13%. although smooth if we compare it to other sectors of the energy industry or to the GDP, which it is estimated to have fallen by 21% year-on-year. This is according to the Marcos consensus. Industries are the most impacted by the quarantine, especially those considered non-essential, while these costs are hit because of the lapse in the SMEs' consumption but partially upset by residential demand due to the stay-at-home order and colder often. As we go into the winter, demand recovers surpassing 2019. Moving to the power generation segment as seen on slide seven, during the second quarter of 2020, we posted an adjusted VDA of $95 million, similar to the Q2 2019. mainly given by the reduction and pacification of spot prices as from February 2020. In addition to lower margin and volume sold in Energia Plus, the latter and the legacy lack of inflation adjustment plus effects are the negative effects of the COVID-19 in power generation. As from July, this market, the Energia Plus, is improving but still far away from the pre-pandemic level. These effects were partially offset by our stakes in the Ensenada Ragán Power Plant, PP2 and PP3 wind farms with private PPAs, and GENERA Plus capacity increase, as well as lower costs related to the lower energy purchases and the legal impact on our cases-nominated costs. Quarter-and-quarter off-peak pricing for spot energy and lower power dispatch in Q2 2020 contributed to that 16% decrease per-and-quarter in UVDA. While spot energy comprises 65% of our capacity in manual watts, only represented 48% of our power generation in UVDA in the quarter. and we'll keep shrinking thanks to the commissioning of the second CDGPA at Genova, which we are seeing in the P&L in Q3, and further one in SENA expansion in Q9. In Q2, generation was 10% lower year-on-year, in line with the lower electricity demand at the national grid because of the lockdown. As the demand is lower, the marginal units but also renewals are disrupting the ranking. Therefore, the combined cycles are the last units to fulfill the demand. Our two combined cycles at Zoma and Genelua were due a dispatch, as well as our non-conventional energy, but the remaining thermo units open cycles were mostly not required. Quarter-on-quarter, power generation decreased 25% mainly because of the lockdown on Silicon Valley. Despite the demand and contraction witnessed in the country, the power generation business model relies on capacity payments, so lower dispatch does not much impact on the revenue making as long as availability is outstanding, especially for PPA-based energy. The availability rate in the second quarter of 2020 reached 98.6% with install capacity of 4.8 gigawatts operated by Compact. We have a 30 basis higher than the same quarter of last year, mainly because last year, Piedra Buena and Plus Units at Güemes faced out. As I mentioned earlier, we are proud to have achieved one of the most important milestones of Compact's 15-year history. with the commissioning of the second CCGT at Genelva on July the 2nd. CAMESA granted clearance to the second in-turbine for 199 megawatts, completed expansion for a total of 400 megawatts priced under a 15-year PPA computed with CAMESA. Despite the pandemic and the delays incurred until it was deemed essential, AMBA executed COVID-free protocols with contractors that's achieving the COD on time and diverting roughly to $320 million. This is 9% lower than what we budget, mainly because of diluted special capsules. Now, Genela is the largest and one of the most efficient thermal plants in the country, as you can see on the slide A in the picture of the existing . and the new one nearby. It has also a full capacity of 1.2 GWAS located in the gate of Buenos Aires, Detroit. The remaining expansion in the pipeline is in Senadarragan Thermal Power Plant, as you can see on slide 9. This is a 280 megawatt CCGT project at the south of Greater Buenos Aires, which is critical infrastructure for Argentina Group. In May and June, we placed a purchase order for the cooling tower and kept digging to set the foundation base. However, works were halted for most of July, and until July 20, we got an essential waiver, so we resumed operations focusing on the construction of critical paths to achieve COD by Q1 2022, therefore to start building A PPA for 10 years with CAMESA. The lockdown negatively impacted the domestic tax, but way lesser than crude oil and lesser than the GDP, dropping year-on-year to 8% on Q2, mainly driven by the lower industrial consumption because of the non-essential shutdown and the economic downturn. Lesser gas fired by CAMESA because of it. Thank you very much. bringing down traded prices. Gas consumption is rising right now as we are in winter season, but we are still below previous year's watermark. However, CAMESA demand is unfulfilled right now, and it's covering it with imported gas and liquid fuel. Moving on the results on EMP, as you can see on slide 11, during Q2 2020, this segment posted an adjusted VDA Thank you for joining us. which in around 44,000 barrels of oil equivalent sold per day, of which 91% is composed by natural gas. On the oil side, which represents only 14% of the segment's revenue in the quarter, volume sold decreased 17% year-on-year and 23% quarter-on-quarter, which is 4,100 barrels Many due to the collapse in the demand and prices affected by the lockdown and the lack of storage capacity, resulting in drilling activities on standoff. During Q2 2020, the crude oil sales price decreased year-on-year 65% and quarter-on-quarter 58%, reaching $21 per bar. Although in May, the government set barril criollo up Thank you very much. We can see that given the current clean fuel trend, it's pricing premiums may either like oil. We are in gas production on slide 12. We can see Q2 reached an average of 253 million QFC per day per volume sold, 10% lower year-on-year, but stable quarter-on-quarter despite the price collapse due to the lockdown and the lack of long-term contractualization. Lower prices impact on the rate-given equation, therefore, producers respond with a less resilient rate, and natural decline takes place. And because of that, production was lower in Rincón del Mangrucho and Río Neuquén, and a minor decrease at Sierra Chata and Aguaraue blocks, which were partially upset by the increases at El Mangrucho. And this is a block in which evacuation infrastructure was expanded, even the Outstanding productivity and upside potential, and also keep in mind that it is fully owned by us, holding operation, operatorship as well. In Q2 2020, Mangrusha reached 153 million QFC per day of gas production, which is 5% higher than Q2 2019, and contributed close to 65% of our overall gas, ranked the four highest gas-producing block at Mentina Bay. It is also remarkable that 7% of the Q2 production corresponded to shale gas from the completion of two recent awards at El Manrujo block last year. During the second quarter of 2020, our average for gas was $2 per million. 37% lower year-on-year and 15% lower quarter-on-quarter. mainly driven by the sharp prices reductions on CAMESA tenders in April and May. The lockdown led to a drop in demand, especially for large users and lesser thermal power. Supply overhangs forced producers to adjust prices to prevent curtailment and keep building. CAMESA outcomes also affected industrial segments and spot prices. But since June increased also the reference price of $2.7 reflecting the demand recovering due to the winter season at lockdown easing. But prices are still in the lowest point in years and barely covering the replacement cost impacting in the investment horizon. Also, as you can see on right below our production, year-to-date is skewed toward Canessa and our Energia Plus units leaving 15% of two other segments. In the commissioning of Geneloa Plus CCGT, we've been procuring our own gas, rising the inter-segment closure from 14% to almost 25%. The lower domestic prices were partially offset by exports to Chile. This is a GSA ended on mid-May. Since then, we are fully selling domestically, but we are waiting for the Secretary of Energy's clearance to continue exploring Chile. We are in our activities due to COVID-19, mandatory lockdown, and our sense of the uncertainties in gas prices, we have been reassessing our activities as from March of this year, but continuing with the operation of our oil and gas fields with the minimum but essential requirements. Therefore... and completion was rejected in Q2 2020 in line with the sector. Currently, we have 11 wells drilled but pending completion of which eight are located at El Manrujo awaiting for better pricing horizon. Moving on the bottom line in the P&L in terms of net income attributable to the owners of the company, Pampa reported a consolidated profit of $4 million in the second quarter were asked in the same period of last year, $400 million was reported. Many due to the one-off non-cash profits in Edenor of last year of $308 million in relation to lower operating margins in oil and gas and regulated businesses, lesser inflation exposure gain because of lesser passive net monetization, for their position locating the electricity distribution and income tax. Finally, moving to the slide 14, our productivity towards the cash and liability management paid off. In this slide, we show all the layers of the company from restricted rules to consolidated figures, but for covenant purposes, let's focus on the restricted rules that is primarily of our current company. We continue optimizing Every aspect of our indebtedness, highlighting that during Q2 2020, Pampa paid at maturity $28 million in addition to $45 million buyback of space value, partially upset by new short-term PESA bonds for a total of $26 million, as well as net borrowing in pesos of $20 million. Therefore, the restricted group gross debt in Q2 2020 recorded $1.6 billion. This is very similar to The gross debt is 89% dominated in the US dollars, which was 92% in the quarter-on-quarter, mainly availing an average interest rate of 7.7%. Average life remained around 5 to 6 years. The cash account had $393 million, which is slightly higher than the $376 million. in March 2020. Many due to the positive working capital as a result of the lower billing and faster collection. So we have a DSO improvement. Collection of plant gas 2017. So the restricted group net debt remains similar to last quarter below $1.2 billion and net debt to LPMVDA stayed at 2.6 times. After Q2, we issued Peso bonds for $87 million plus domestic net borrowing of $10 million. Pampa also repurchased bonds for $27 million face value and redeemed Peso bond series 4 for $17 million. Therefore, our fuel is shifting. We have already shipped all our banking debt to local couriers. It is worth highlighting that the cumulative maturities from now until 2022 amount to $186 million, which is 90% of local currency. In terms of consolidated, including affiliates and ownerships, Pampa Recorder net debt of $1.5 billion. This is two times ABDA and $105 million lesser than Last quarter of March due to the reduced net leverage at the NNR. Finally, we have a share-buy-buy program with a price cap of $15 per ADR and a spending of $38 million. As of this day, we hold 2.2 million ADRs in treasury, so Pampa's outstanding capital amounts to $61.7 million. So this concludes our presentation. I hope no problems here. Now I will turn to Margarita. We will open the floor for questions. We will gather them in the platform. Please write there and we will read it out loud. Thank you.

Thank you. The floor is now open for questions. If you have a question, please send that to the platform or also you can email us. Thank you.

We start here. We have questions from Ezequiel Fernandez from Balance. He sent us, when are you planning what we are planning? To go back to dueling, non-conventional wealth. Well, right now, we have a stock of 11 wealth, and we could, but we need more signals. How many unconventional? Are you targeting for the remainder of 2020 in which blocks Tampa will be focusing? As we said in the script, it will be our right now with the prices that we are seeing in Manglouche is the most competitive, but we'll see for the remaining of the year what's going to happen with the pricing if it's worth it to keep drilling as we already have a stock.

Sir, Lida? Lida? Hi, Gustavo here. I'm through the phone because of technical problems, so I apologize to the audience for not being able to be on the video call. I don't know whether it's myself getting old and not getting along with the technology or the Murphy Law in this case. Anyway, I wanted to join for the Q&A and have Lida and Gaby with some of the questions. Regarding this one of how many unconventional wells, as you know, there is the new plant gas, what is called the plant gas port that has been discussed with the authorities, not yet formally announced. Last week there was a formal meeting that the Minister of Production announced to the producers that we will be soon seeing the invitation. The idea of the authorities is to do the auction in September and started with this program in October. So Thank you very much. There's another question from Ezequiel saying, is the current remuneration for legacy thermal power units enough to sustain plan availability?

High level or are we at the limit already?

Well, I wouldn't say that we are at the limit already. At least in our case, we're still making margin. But as you know, this legacy pricing was supposed to get inflation adjustment monthly right from the beginning. and then it was because of the COVID crisis, the Secretary of Energy issued a resolution postponing the adjustment. We hope that as the COVID crisis eases, they will restart with inflation adjustment of the pricing scheme. And as I said, I wouldn't say that we are already at the limit. That's our case. But maybe some of our colleagues, which have older equipment, are probably already in that position. So not our case, but I don't think that the average of the sector is far from there.

Okay, another question from the security team is asking, any news on asset disposal or M&A? A lot of people are asking this.

No, not currently. We are not working on any asset disposal.

And M&A?

We are studying the things There are several things in the pipeline, as always, under study, but nothing concrete. Okay.

And there's another question from Ezequiel. The last one he said, our gas price was $2, and quite low. Peers in the sector reported something around $2.5. Why we are lower than the peers?

Probably, Lida, you will answer this question better than me, but I would say that my first guess regarding our peers is that they are probably enjoying some of them the benefits of Resolution 46, which we do not. So probably that makes the explanation of the difference

I don't know, you might have another... Well, we are audited, right? But basically, as we've shown in the presentation, and you can see, I think by 11th, our sales are skewed to Camisa and ourselves. And that price is being reduced significantly because of the tenders. So, and we don't have any exposure to district, very little, less than 5% to retailers. Retailers right now are the most, the highest price in town. So, right now, the stock market, it follows Camesa, so in Camesa it's reducing, so that's the reason why this is the price that we have. Yeah. Going forward, June, it's already, I was saying, June, it's like more bounding to the reference price of 2.7, and July as well. August, it's, well, August, the tender was a little bit lesser, but still above $2, so we're expecting an improvement. Okay. This is the questions from Ezequiel. Then we have a question. What are the capacity and generation payments on Genelva's second steam turbine coming online now? And how much incremental EVDA do you estimate the plant will add?

Lida, if you know the answer better than any of us.

The capacity payments on Genelva is 25%. This is a earnings report. The ABDA estimated to add is like roughly $8 million per month. That is $24.5 million next quarter. So this quarter in Q2, we didn't book anything. We'll be booked next quarter. And that's it. Nothing, generation payment and that's it. Then the second question from Anne, she's asking, there are reports of YPF considering the sale of Ensenada. Will Pampa be interested in this mistake?

I would say that if YPF decides to move forward on that, they will certainly look at it. But so far there's nothing concrete.

What are the options of Transnist, considering that for 2021, 100 million bond maturity, local market, other... Actually, Anne, it's $90 million outstanding, so it's less than 100, because we reported it.

Yes, hello, Gabriel speaking. Well, really, as all the other companies, we... To do a liability management will be an option or to just fund through on-cash generation and depending on the outlook on future cash flow generation. But on one side, it's not a significant amount. On the other side, depending on the outlook moving forward, there is something that will be required to take a specific action.

Okay. Another question from Anne. What is the outlook estimate for CapEx the remainder of 2020 in each of Tampa's main divisions? The estimate for the remainder of 2020? Actually, for the year, we have EMP $65 million of forecast of CapEx, like half maintenance, half maintenance. This is very low because at the beginning we always say the budget of 2020 was 130, more than 130, and this was up by half. Then for our generation, this one didn't change that much. Basically, it's $30 million from Penelope's pension, which is already done, plus another $40 million for the year, okay, in the maintenance. So far, as of today, as of June, we already completed half of it. We are like nine now.

Our next question is from Carlos.

I just wanted to add, so very minor capex going forward because we just completed the Genelva, so there are no Other than maintenance capex, which are rather small this year, around $45 million, so in the remaining of the year, less than half of it. And on EMP, it will depend on the plant gas, but still a small amount.

Perfect. The next question comes from Matias Castagnino from BCC. What do we know about the new potential plan gap, prices, timing, etc.? Is Tampa joining this potential program or not? What will be the break-even price to develop reserves? That is the first question we have to ask.

Okay, I mentioned a few things about it. The timing, as I said, again, nothing has been published yet, but we do expect that is what the minister explained to us last week, that in the next few days we will be receiving the invitation to participate in the auction with all the terms. and that that auction should take place during September and the new plant gas start accruing in October. The goal of the plant gas is not a huge increase of production, it's rather, and basically because of the constraints of evacuation capacity from the Neuquina Basin, So they're going to auction a flat production throughout the year and a three-month peak for the winter. It will have a cap on around $3.40 that will be increased Thank you very much. Thank you. The next question of Matias is what is the impact of

of the EBITDA due to the legacy remuneration specification.

Lida, I think you already covered this, but I don't know if you want to add something.

So basically, given the trend and the effects, official effects, inflation trends, we are forecasting around $45-$50 million hits because of the lack of these adjustments and the effects Another question from Maria is regarding Edenor.

What would happen if Edenor needs financial aid? Is Pampa going to transfer cash to Edenor?

Yes, hello. No, we are not expecting any support from the parent to Edenor. Since we got Edenor, there were never any and Intercompany Flows, not even any dividend collection from Enortupampa.

Our next question comes from Bruno Montanari from Morgan Stanley. He's interested about the cost controls, how we are dealing with in each businesses regarding the cost. What will be expected for the cost and cap tax in the near future?

Sorry, Maggie, can you revisit, please? I don't know if it was for me.

Yes, yes, of course. The question comes from Bruno Montanari from Morgan Stanley. He wants to know about the cost control regarding each business. and how we are going to deal with the cost and CAPEX for the near future.

Bruno, as I said, obviously we are always revising, and especially in this situation, Going over and over to our OPEX to see which one of them. There's no queue line, I don't know.

Maggie or somebody. Sorry, somebody has the microphone on. Can you move Maggie or not?

Yes, I'm going to find a person.

Okay. So, as I was saying, there is not much that we can do to reduce costs. Obviously, we are advising all of them, but it's very marginal and on second decimal terms. in terms of the numbers of Pampa. What is relevant for Pampa is CAPEX. And in this situation, and thanks for the planning, we are in a very low CAPEX environment. Thanks because we have already completed the Genelva expansion and we are awaiting the new terms of the planned gas before deciding a new investment there.

Okay, yes, our next question comes from Alejandro de Michelis. Sorry, before I continue, if there is somebody with a microphone on, please turn it off so that we can listen to the answers clearly. Our next question comes from Alejandro de Michelis from Now Securities. He has two questions. This one is how do we see the evolution of electricity tariffs and power prices and the payment from Comensa?

Do you want to answer that?

I think it's muted also. It's muted? It's muted.

So, how do you see the solution of electricity tariffs? We, honestly, this is in the midst of the pandemic. I don't think electricity tariffs will be raised right now. And actually, the government will then place an extension of the tariff freeze. I don't know if you remember, there was an emergency act passed last year. and that up to 180 days, no tariffs increases, cell phone, mobile, anything will be raised, recent. That ended on June and they extended for another 180 days. So should be, the freeze of tariffs will be done by December. Power prices, honestly, the legacy, it is what it is. It will be keep diluting. If we don't get any inflation adjustment, and honestly, this is the same line as the previous answer, I don't see this happening in the midst of a pandemic. Though it is true, and we addressed it in the call, working capital is performing better. I think everybody, all the peers talk about this. We are seeing better collections from the Retailers, Edenor, it's collecting more. Gas distribution companies also collecting more. So they are passing through this kind of behavior to CAMESA or to gas producers as well. And CAMESA has been faster as well. So in this quarter, we had a more confident working capital because of that. This is last quarter when we had this call. Phase of sales outstanding was The water amount was 86 days. And now we are 10 days earlier. So this 10 days are one third of the average billing. It's like $20 million better if we do this for the whole year, right? For 12 months. The other question from Alejandro was

The other question, the second one from Alejandro is very similar to the question of Ricardo from JP Morgan. And it's about our investment in the upstream of gas volume evolving in the near future if we are joining the new potential plant gas, especially second half of this year and for next year.

Gustavo is self-mute. Well, again, as Gustavo was addressing this, if we have it, it will be a great signaling and great push for the sector that really needs it. One of the questions is that from Daniel Guardiola, he was asking what prices... Do we need... What prices are the break-even? This is the prices that makes it break-even. We almost have a break-even in the BPA. I would say that this is the bottom, and this is very low. Anything that helps, anything that contributes, it will make this sector more prospective. So, of course, we don't have nothing in paper, but it's been dialogue, and... But we are working on it, so it's already addressed by Gustavo.

Thank you. Now we are pulling for more questions in between for a few minutes.

I've got a questions and answer session. Daniel is also asking, What is the minimum capex you can deploy before significantly damaging the operation? Well, this is the minimum capex. Not really in anything. Well, the first quarter of the year, we drilled almost nothing. Because first quarter was, we were thinking about the second quarter to be preparing for winter season, which is our hot season. But then, lockdown, COVID-19, so nothing. We did nothing, so and basically, well, this year we had the drive of last year's activity. Last year was a year for EMP active in the drilling and completion. Last year we were doing shell drillings. Even we were doing shell drillings. And because of the capital we are diverting this year so far, I would say $65 million is the forecast for the year, 60-65 million. Next year, we are estimated that if nothing happens, that will mean a decline in production. So this is already very low. There's another question, no, Maggie, from Daniel? Okay, okay.

This is about the regulating utility. If we are seeing no tariff adjustment in the second half of this year, what do we think about the tariff adjustment for this year?

Yeah, so we already said this is we are in the midst of the pandemic. And there's a decree preventing on that. So we don't expect any tariff increases in our regulated businesses. There's dialogue to think about what's going to happen after the pandemic, of course.

We are pulling for questions. Please wait for a few minutes.

There's another question from Jumoku. He's asking about the current payment delays, days from CAMESA. I was saying right now we are around 75 days. This is 10 days better than the last call. That was the high water mark. This is CAMESA PariPasso with gas production with everybody, all their clients, gas importation, Electricity, Transportation, everybody is getting paid franca mesas around this day, 75 days, so it's a 10-day improvement. There's another question from Daniel.

Actually, it's from Andres Cardona from CP. He's asking, are you considering to tap dead markets? Some of your peers seem to be getting very low interest rates of local markets. both in local currency and dollar-linked instruments. If that is the case, what would be the use of proceeds?

Ravi? It's still muted, no?

Yes, hello, hello.

Now we can listen to you.

Yes, yes, I was on mute. Sorry. Well, in respect for the transactions on our peers that have access to the local market, the international market, we clearly have seen that there are very friendly transactions for the corporates, but we understand that they have access essentially to do liability management because they were required to do so. As you know, our debt profile, our first... Maturity is on 2023, by July 2023. So we don't have any requirement to access the local markets now. And even if we want to do something in 2023, it would not add much, it would concentrate a lot on the 2027. So essentially, we feel very comfortable with our debt profile and our cash flow generation. So we don't think there's a requirement so far with the current business model. On the other side, we have strengthened our liquidity onshore by accessing the local capital markets in shorter term, as you have the words in the press. We accessed about $90 million in the local market for 13 months. So that's what we did.

There's another question, from Daniel. Again, he's also asking the same. What portion of the ABDA generation of the power generation units comes from units with PPAs, and how much from legacy? So just to give our famous chart is that 65% of our megawatts legacy, but only less than 40%, actually 38, is legacy ABDA. and the opposite. 35% of our megawatts is operated PPAs, Mario Cebrero, Genelva, everything that you know, but they constitute 62% of our EVPAs. And this inequality will grow even wider as we have Genelva right now coming online and Juan Internado Arragan. He asks, Daniel also as well, do you foresee any material risk that government may modify TPAs with CAMESA? I think we addressed it very times before. It's something that is always a risk. But right now we haven't talked or

And besides, I think we would like also to stress something that we said is that those contracts already have been affected considering that the owner of the official exchange rate, so in terms of your equity that you have deployed to the capital, Thank you, Lili, for your questions.

People asking for new bonds issuance. I think Gabby already answered it. Thank you for your question also in that sense. Someone from the audience asking how regarding hydrocarbon production, how we expect demand will change during Q2, the second half of the year, sorry. Is it growing? Yes, right now it's growing because we are in winter. Q4, raise your salt because it's off-peak season. And historically, as you can see, the charts, it's always goes down. But it's a seasonality that's not unknown. But Q3, it's the hot season of Argentina. And as you can see, the year-on-year decrease, it's not that much compared, I don't know, to GDP or other sectors like crude oil and so on. I think this is, can you please comment on TGS results and new project in Baja del Añelo by Lily Young from HSBC? It's a small project. Actually, it's really good because it makes more use of the gathering pipeline that we built with Bill Operate and Transport by TGS. This is a huge project. I don't know if you remember. TGS, like $300 million for about two years. It was finished last year. We started the operate and actually started the bill. It contributed a part, but not a huge, but an important part Q2-78 at TGS. And basically it's part of the ecosystem at Baca Morte that TGS is trying to build, right? And this is a treatment plant that will be in the north part, in the north trench of the Garen pipeline. It's a two-year contract. TGS will build, operate, and treat this gas that the people from Shell and YPF live I think that's it. I think there is one more question from Chris De Chiarrio.

Have there been any further discussion with the authorities about changes to the U.S. denominated PPA in light of current blue-chip rates and continued monetary policy?

I think Gaby already addressed it.

I think so.

So I think that's it, right? There's no more. There's a poll after this presentation. Thank you so much for joining us. Margarita and I, we appreciate you are here. Any question you may have, you can reach us both through every contact line that we have. Please stay safe and well. See you next quarter.

Thank you to everyone. Thank you. And we are available for any further questions through Lida, Mari, and the team.

Thank you, Gaby, and thanks for your participation. This concludes today's presentation. Thank you for joining. You may disconnect at this time. Goodbye.