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| Statement |
|---|
| We used our robust cash flow, to enhance our portfolio, without neglecting our financial position, strengthening our liquidity and substantially reducing our leverage, by paying down debt or taking advantage of the local market |
| Overall 2023 was another remarkable year in PEPE's history |
| And while doing so, thanks to, again, several things, basically the strong free cash flow generation of our assets, thanks to a very successful management of our liquidity, and an excellent - and excellent liability management |
| The late summer boom and the return to normal hydro levels are helping domestic sales and exports to Chile |
| As you probably know, we already drilled and completed one well, Rincon de Aranda 2000, which had pretty good results |
| So, thanks to these outstanding results, especially at Sierra Chata, we recorded a 11% increase in our proven reserves, amounting to 199 million BOE |
| First one says, there were encouraging news from Sierra Chata supporting the increasing gas reserve |
| Our way of management helped us to gain efficiencies and be savvy over business and balance sheet |
| So, $300 million reduction of net debt, putting us in a situation of very strong financial situation with a net debt of less than one time EBITDA |
| Regarding the campaign, the productivity was outstanding |
| This is a remarkable 44% increase, compared to the 2022 record |
| That gives companies and whoever need to cover peso needs great opportunities |
| 53% of the quarter's production came from El Mangrullo and 25% from Sierra Chata, the latter showing a significant growth, compared to the 6% of share recorded last year |
| So, we were able to reduce indebtedness by $150 million, and increase cash position by $100 million |
| We've been pretty successful in developing so far Sierra Chata field |
| Thanks to the strong liquidity position, our commitment to canceling debt and the debt peso - Argentine peso debt dilution, the net debt and leverage ratio decreased significantly, recording $630 million and 0.9 times leverage |
| We almost doubled shale reserves certified in 2022 to 83 million BOE |
| So, that sales from those wind farms, as they become online, will increase our production capabilities this year |
| As we explained given by the peso that we took at the beginning of the year, Pampa was able to reduce its net debt by one-third |
| Regarding legacy capacity that accounts for about one-third of the EBITDA generation of the power generation segment, we were just granted in February an increase of 74% |
| And what we foresee in the future is a significant increase of the production that, will account approximately to 3.5 million cubic meters a day |
| Working capital improved as we collected winter sales from CAMMESA during December |
| This is 33% higher year-on-year, because of lower cost, due to the drop in production, and higher income from this export dollar income |
| This is higher than last year by 30% |
| That's a 45% increase in production capacity |
| We look forward to delivering outstanding results going on |
| The way I see the year, or the way I simplify year 2023 for Pampa, that I think was a remarkable year, is by taking two pictures |
| We hope that now that the national regulated distribution companies have received an increase in the value added of distribution, the price for the service they provide, they have received a significant increase beginning February 1st |
| As you can see, nine walls from Sierra Chata rank among the Top 20 producing wells in Vaca Muerta, outperforming peers and El Mangrullo, which they are also outstanding by their own right |
| We also recorded lower debt service quarter-on-quarter, benefited from the peso devaluation, also diluted the principal amount of the peso debt |
| Statement |
|---|
| The situation was coupled with a soft demand for gas and thermal energy |
| However, average production did not take off as expected, due to soft demand from mild weather and poor thermal dispatch |
| But this was worsened by mild weather with a warm spring and cold start of the summer |
| It is driven by availability, and in Q4 we reached 93% below last year's 97%, this is because of Loma de la Lata's outage that affected the whole quarter |
| EBITDA fell 12% year-on-year |
| This is 30% less year-on-year, because of soft demand |
| This is 17% down, due to lower-than-expected exports |
| Q4 dispatch decreased 3% year-on-year |
| Focusing on gas, our Q4 production decreased by 7% year-on-year |
| This is 8% below last year |
| Although the studies have not finished yet, our impression is that the lack of scale is a problem, that this project will lack the necessary competitiveness |
| This is mainly because of reduced gas sales mentioned before and the impact of the steep peso depreciation over our affiliates |
| So, this is the uncertainty that we are living, or that we are suffering ourselves and all the industry, both transmission companies, power generators |
| Could you comment on what Pampa is experiencing regarding this issue, and how it might affect working capital needs? Nicolás Mindlin Yes, as mentioned, we are experiencing, again, delays on CAMMESA payments, and the lack of visibility of how this will evolve going forward is adding some uncertainty and stress |
| The decrease was driven by this sharp decline in local and foreign demand, which affected our gas prices too |
| This is averaging almost 9 million cubic meters per day, mainly explained by the lower demand |
| This is 30% below year-on-year |
| This is mainly due to the lower demand and outages mentioned before, partially offset by Barragan's new CCGT, the hydros, and the new wind farms |
| So, negative in real terms |
| This is another challenging year, but it did not prevent us from growing and delivering milestone |
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