U.S. Markets close in 2 hrs 59 mins

Edited Transcript of PAMP.BA earnings conference call or presentation 12-Mar-19 2:00pm GMT

Q4 2018 Pampa Energia SA Earnings Call

Mar 18, 2019 (Thomson StreetEvents) -- Edited Transcript of Pampa Energia SA earnings conference call or presentation Tuesday, March 12, 2019 at 2:00:00pm GMT

TEXT version of Transcript

================================================================================

Corporate Participants

================================================================================

* Gustavo Mariani

Pampa Energía S.A. - CEO & Vice Chairman

* Lida Wang

Pampa Energía S.A. - IR Officer

================================================================================

Conference Call Participants

================================================================================

* Bruno Montanari

Morgan Stanley, Research Division - Equity Analyst

* Vinicius Tsubone

HSBC, Research Division - Analyst of Latam Utilities, Oil & Gas

================================================================================

Presentation

--------------------------------------------------------------------------------

Operator [1]

--------------------------------------------------------------------------------

Good morning, ladies and gentlemen, and thank you for waiting. At this time, we would like to welcome everyone to the Pampa Energía Fourth Quarter 2018 Results Conference Call. We would like to inform you that this event is being recorded. (Operator Instructions) Before proceeding, let me mention that forward-looking statements are based off the beliefs and assumptions of Pampa Energía management and on information currently available to both companies. They involve risks, uncertainties and assumptions because they relate to future events and, therefore, 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 Pampa Energía and could cause results to differ materially from those expressed in such forward-looking statements.

Now I'd like to turn the conference over to Lida Wang, Investor Relations Officer of Pampa Energía. Miss Lida, you may begin your conference.

--------------------------------------------------------------------------------

Lida Wang, Pampa Energía S.A. - IR Officer [2]

--------------------------------------------------------------------------------

Good morning, everyone, and thank you for joining our conference call. I will briefly go through every business segment, reviewing the quarter's key figures and the latest events since our last call in November. Today, our CEO, Gustavo Mariani, is joining us; as well as our CFO, Gabriel Cohen, and they will be participating in the Q&A session. But you can always reach us out for more details on the results or any questions you may have.

Let me start by reminding you that this quarter, our financial statements follow the International Accounting Standards #29, meaning all figures reported are adjusted by inflation. However, exceptionally for the convenience of the reader, fourth quarter financial information we are going to discuss today is disclosed and explained in nominal terms as we used to do. In the earnings release, we disclosed on our figures both on the current and constant currency so investors can assess the impact in their analysis.

So before we go to the quarter's figures, on the Slide #4, we wanted to make a quick stop by reviewing the full year's financial highlights. 2018 was a challenging year, but the company kept consolidating the portfolio of assets so we could fit our core strategy better. Revenues were maintained at similar levels to 2017, increasing by 3% despite 100% peso devaluation we witnessed last year. While 50% of our sales were dollar-linked, in EBITDA terms, almost 70% came from dollar-denominated core businesses, mainly gas and power, which contributed to deliver a $1.1 billion EBITDA, growing 31% year-on-year. The depreciation of the peso affected our utility business, which shrink their share of our EBITDA as their inflation-adjusted revenues couldn't catch up with the deval.

E&P business also got hit because declines of lower gas prices in dollars and hydrocarbons production declined. Today, power generation leads the share of Pampa's EBITDA, thanks to new power plant commissioning and our PPA's performance. Despite the adverse market conditions, Pampa achieved a record of level of investments made in the company's history and in Argentina, having the parent company and its subsidiaries at 100% disbursed a total amount of $1.1 billion of CapEx. Pampa standalone only spent $540 million of this, of which expansions covered a total of $300 million.

Now moving on to the quarter's figures. As you can see on Slide 5, the adjusted EBITDA in the fourth quarter of 2018 recorded ARS 6.8 billion, 87% more compared to the EBITDA of ARS 3.7 billion recorded in the same period 2017 but 12% lower in dollar terms, mainly explained by electricity distribution and E&P performance, partially offset by our power generation business and our affiliate TGS contribution.

The ARS 3.5 billion EBITDA at our power generation segment was mainly driven by the large peso devaluation impacting our power generation sales invoice in dollars, in addition to the commissioning of new 2 power plants and PPA I mentioned before and the full fare billing since November 2017 for the legacy capacity, which currently is 75% of our total 3.9 kilowatts installed capacity.

In Q4 2017, October 2017 was billed under the lower capacity charge. Generation was 23% higher year-on-year, mainly because of the same period we have major outages at Genelba combined cycle. There were 6 at the beginning of 2018, and the replacement of the blast lay wheel at Loma's steam turbine, enhancing the plant's installed capacity by 15 megawatts as from January 2018 as well. These positive variations were partially offset by lower dispatch at Güemes, Parque Pilar and Piquirenda thermal power plants in addition to lower water input from our hydro unit -- hydroelectric units.

Also, we highlighted that we managed to pose an outstanding availability rate of 98% with an increase in full capacity higher than the 87% availability achieved in the same quarter of last year mainly because in the fourth quarter of 2017, Genelba was out and now is normalized.

Moving to news in the power generation and large -- a new remuneration scheme for legacy capacity was polished, denominated in U.S. dollars and basically affecting thermal power plants by releasing to $5,500 per megawatt-month installed capacity -- the capacity charge during the offpeak season, which is 6 months in a year, fall and spring. So the capacity is no longer flat throughout the year. Also, capacity charge will be weighted by the unit utilization factor on top of the availability performance that already waits in the power capacity remuneration. Also, thermal O&Ms was reduced by $1.40 per megawatt hour.

Before I move on from power generation, I wanted to give you a quick update of our expansion projects regarding the closing to combined cycle of 383 megawatts at Genelba. As you can see in the picture on Slide 7, at the beginning of March, the new gas turbine is totally assembled and in the last stage of commissioning that should be in June of this year in addition to the recent infrastructure advances, which are ahead of the original schedule.

On the renewal front, the construction of Pampa Energía II and III Wind Farms for 106 megawatts is currently in optimal pace. Parque Eólico Pampa Energía or PEPE II as we call them, 14 wind generators are installed, of which 7 are awaiting to be connected to the high-voltage grid and their impact for commissioning. PEPE III foundations were finalized, and now we are in the midst of mounting the 14 wind turbines, which we expect to finish this by the end of April.

Moving on briefly to the distribution segment, which was previously reviewed by our CFO at Edenor, Leandro Montero, yesterday in the earnings call. As shown in the Slide 9, during the fourth quarter 2018, the EBITDA decreased by ARS 653 million compared to the same period of 2017, amounting to a negative ARS 140 million in the quarter, mainly because of low demand of electricity, which was not expected in this peak season due to the mild weather, lower economic activity and pricing line elasticity but higher operating cost and energy losses that outpaced the granted tariffs and inflation adjustments.

Energy losses reached 17.1% rate in the fourth quarter of 2018, 70 basis higher than the 16.4% recorded in the same period of 2017, mostly identified in residential end users as they consume more electricity when the weather is colder, especially low-income users that do not have access to the gas distribution grid. Energy cost increased by 91% year-on-year due to the application of the new seasonal price tax. By the way, this is still subsidized compared to the full cost of generation. However, the Undersecretary of Electric Power established an increase in the seasonal price since February of this year following in May and August of this year. Also in March, Edenor got a tariff adjustment of 32% accumulated, which reflects inflation adjustment and deferred adjustment like with last year.

Lastly, last week, Edenor got a concession transferred to the national regulator, ENRE, to Province and City of Buenos Aires. This change shouldn't imply any changes in our license agreement that matures in 2087 nor any changes in the tariff scheme set forth in the last comprehensive tariff review, among other matters. However, the new regulatory agency has not yet been set up, and we are still working on settling timing issues such as our legal claim against the federal government for not complying with the MOU signed back in 2006 Social Tariff, shanty town consumptions and so on.

In the oil and gas segment, during the fourth quarter of 2018, we posted an adjusted EBITDA of ARS 1.8 billion for the continuing operations, 39% higher than the Q4 2017, mainly due to the effect of the peso devaluation over the oil and gas dollar-linked sales in addition to higher oil sales price in dollars, partially offset by lower gas sales prices in dollars, the expiration of Plan Gas second generation in July 2018 and lower hydrocarbons production.

Our overall production in Q4 2018 declined 9% year-on-year, reaching to 42,500 barrels of oil equivalent per day, of which 87% is composed by natural gas.

Regarding the gas production, the quarter reached an average of 222 million cubic feet per day, 9% lower than the Q4 '17 and 10% lesser than quarter-on-quarter, mainly explained by lower demand, which is highly seasonal and kind of affected by the economic downturn, combined with oversupply of gas driven by the disruption of shale gas development, specifically those under the Unconventional Gas Plan (sic) [Unconventional Plan Gas]. These effects affected on Rincón del Mangrullo block with a lower drilling rate and natural decline and delayed drilling activity at Sierra Chata, both offset by the production increase at El Mangrullo, and to a lesser extent, at Río Neuquén, which continues with the development of tight gas reserves and investments in facilities.

In the case of El Mangrullo block, a gas pipeline committing to Rincón del Mangrullo neighboring block was built in order to take advantage of this block's production plant. Moreover, it is worth mentioning that as of today, Pampa's gas production is again at the level of Q4 2017, currently producing between 260 million and 280 million cubic feet per day, mainly coming from El Mangrullo block by the installation of this early production facility and the agreement with YPF to use Rincón del Mangrullo facilities, so we are able to work on Muerta.

The self-procurement for power generation also helped to recover gas production levels. So that's not improved pricing. Helps to have a certain uptake specific -- especially the weak demand period that -- and to monetize some other synergies between power and gas segments. In December, the fuel self-procurement was extended to power plants under PPA. However, if a power plant wants to use this capacity, this feature, but does not have the fuel at the moment that it's required to dispatch, reductions will be applied on this capacity remuneration.

Additionally, CAMMESA was instructed to apply a new maximum gas price, a new reference price. This will be the fourth successive reduction since August last year, recognizing it is the variable production cost, the price of gas that would have resulted if that gas would have been required -- would have been acquired by CAMMESA. Basically, using the price that CAMMESA got for the tenders.

On the oil side, the slight decline in the production from 5,900 to 5,400 barrels per day corresponds to the end of the service at Medanito La Pampa block in October 2017; partially offset by a slightly higher production at El Tordillo block, which increased activities; and Río Neuquén block with higher production of condensates due to developments of the sand with better liquid and gas relation, thus increasing gas production as well.

During Q4 2018, the crude oil sales price increased year-on-year by $6.40 per barrel, reaching to $60.30 because of the domestic price now follows international price a barrel at the brand and Escalante heavy oil narrows Medanito prices being 61% of our oil production qualified at Escalante.

During the fourth quarter of 2018, our actual weighted average share price was -- for gas was $3.40 per million BTU, 45% lower than the same period of 2017, mainly due to expiration of Plan Gas second generation by the end of June 2018, while in Q4 2017 this compensation represented $1.60 per million BTU or just $6.20 per million BTU of reported price. However -- moreover, there was a 27% decline in end users' sales price, mainly driven by a reduction on the reference price of gas fired at the power plant and the gas tenders on a long-term basis conducted by CAMMESA at the beginning of September of 2018, which reflected the demand seasonality and excessive supply, which also impacted negatively the commercialization in the industrial segment. This drop in prices were partially offset by higher accrual of retail price from gas utility companies, the gas DISCOs.

In addition, on January, the State Secretary of Energy informed gas producers affected by the Unconventional Plan Gas, including Pampa, that no new projects will be approved. Our 3 projects applied timely and got to the shortlist pending of their approval: Río Neuquén, El Mangrullo and Sierra Chata blocks. The government will evaluate a new encouragement scheme during winter season, which was disclosed last week, but no formal resolution is in place.

In February, a gas tender took place but on a firm basis and for gas DISCOs. This is the first market indication with take or pay or delivered pay condition, though it's only for 12 months. Bidders were requested to submit seasonal quantities but with one price. Price indications for a total awarded volume of 1.3 billion cubic feet per day in winter season at a weighted average price of $4.62 per million BTU, out of which, 83% correspond to the Neuquina Basin. Pampa tender got awarded and got awarded above average sales price -- average price of the bid.

Before I move on from oil and gas, I want to give you a quick update of our operations. As of December 2018, we closed the year with 59 wells drilled and 57 completed, being in both cases still more than 35% targeting in unconventional gas. Our focus is the development of blocks with tight gas reservoirs and the exploration of shale gas potential in Vaca Muerta reservoir, which can be done at El Mangrullo and Sierra Chata blocks. During Q4 2018, we completed 6 tight gas wells at this block.

Finally, regarding our shale gas activities, the second pilot well, the Vaca Muerta formation at El Mangrullo block, finished drilling operations in Q4 2018. The pilot well was drilled at a depth of 9,200 feet and is the first step of a path that will be completed with 2 horizontal wells with extension of 8,200 feet. The path will start in 2 horizons that have been identified with large potential. Moreover, on November 29, 2018, the joint venture of Pampa and High Luck announced the discovery of oil in Las Breñas formation at Chirete block with a depth of 8,900 feet with 48.52 meters of light oil recovered in 15.5 hours.

Testing during the first month of 2019 have delivered excellent results, with production levels about 1,200 barrels per day. Regarding our proven, developed and unavailable reserves, it is worth pointing out that as of December 2018, we reached 140 million barrels of oil equivalent, of which 88% is identified under natural gas, all of them in Argentina. This 4% increase year-on-year considering the continuing operations was mainly driven by the successful development plans at El Mangrullo and Río Neuquén, and to a lesser extent, by the 45-year license extension at El Mangrullo and Sierra Chata that happened last year. Considering current production levels and concession extensions last year, the reserve-replacement ratio posted 1.32 and average life of 8 years. And we divested most of the assets. In refining and marketing, we are going to skip the details and head straight to the comment -- to comment on petrochemicals, in which we posted an adjusted EBITDA of ARS 35 million during the fourth quarter of 2018, ARS 177 million higher compared to the same period in 2017, mainly because of the FX impact over our dollar-denominated prices that are highly correlated with international references and also optimization of fixed cost by shutting down small-scale plants that were not functional with the current petchem business environment. This was offset by lower sales volume, lower prices in dollars and export duty enforced since last year, September.

In operating terms, total sales volume of our petrochemicals segment decreased by 15% in Q4 2018, totaling 88,000 tons mainly due to lower demand of styrene products and realized exports plus the shutting of BOPS plant in Zárate.

Finally, in holding and others segment presented an adjustment -- adjusted EBITDA of ARS 1.5 billion in the fourth quarter of 2018 compared to ARS 647 million in the same period of 2017. This is mainly due to the adjusted EBITDA by ownership from TGS and Transener, the higher income from fees and lower expenses as they've been redistributed between the operating segments.

I'm going to briefly review TGS as they just have their earnings call last week. TGS' EBITDA adjusted by our indirect stake of 25.55% contributed to Pampa -- contributed around ARS 925 million in the quarter from implicit total of ARS 3.6 billion, significantly higher compared to the Q4 2017, mainly due to the full implementation of the tariff increases plus the recognition and cost variation resulted from the tariff review for the gas transportation business, the gain in installment plus inflation of 433% cumulative.

Moreover, the margin in liquids processing segment also contributed to the EBITDA performance in TGS due to higher dollar prices for FX, mainly -- partially offset by the drop in the reference prices in dollars and lower volumes sold.

For its midstream business, TGS was granted an extension to the North Tranche in their Vaca Muerta gas gathering pipeline, adding to the total field by adding another 16 miles of pipeline. The total investment for the 91-mile pipeline, north and south -- covering north and south of Vaca Muerta formation and the condition plan is estimated at a total of $250 million with a total transportation capacity of 2.1 billion cubic feet per day going through several fields of Vaca Muerta formation to capture the natural gas production before its entry into the main gas pipeline. Commissioning is estimated to be in stages as from the second quarter of 2019, concluding in the fourth quarter of this year.

In Transener, you see EBITDA adjusted by our indirect shareholding of 26.3% contributed ARS 350 million in the fourth quarter of 2018 from implicit total of ARS 1.3 billion, 7% higher than the same period of 2017, mainly explained by the semiannual cost variation of the update in February and November of 2018 retroactive to August, that last one, which amounted a cumulative 43% increase, partially offset by operating cost. Deferred cost variation update stipulated in the tariff review that should have happened in February 2019 didn't happen yet, which we estimate 25.5% and 27% includes for Transener and Transba, respectively. Transener is currently conducting all the procedures to regularize this situation as well as claiming the interest corresponding to the delay in applying the last tariff adjustment that happened in November.

In November -- okay, so moving to other holding news in the corporate side. In November last year, the Argentine Public Registry of Organizations registered Pampa capital stock reduction, approving the cancellation of 183 million ordinary shares of Pampa in treasury that were repurchased under the buyback program. There is a remaining 20 million repurchased shares that the company will also need for its shareholders' approval for the cancellation in the next shareholders' assembly. As of today, Pampa's outstanding shares amount to 75 million ADRs.

In personal income attributable to the owners of the company, Pampa presented a consolidated gain of ARS 6.3 billion in the fourth quarter of 2018 compared to a profit of ARS 1.5 billion in the same period of 2017, mainly explained by the accrual of ARS 5.3 billion of FX gains due to the 9% peso appreciation against U.S. dollar in the quarter, currency which most of the company's financial liabilities are denominated. But at this quarterly analysis, it's nominal pesos. The inflation effect is not affected.

Finally, moving on to Slide 15. We'll now highlight the low and well-spread leverage of the company as well as the solid cash position held compared to other peers in the same industry and within the country. Proactive cash and liability management have paid off, especially with the volatility, high yields and narrow window in the international financial markets. In line with the company's policy during this Q4 2018, we continued refinancing or redeeming the short-term facilities that we must highlight that a month ago, starting a month ago, Pampa redeemed the maturity and pre-cancel a total amount of $130 million. As of December 31, 2018, the consolidated gross debt, including affiliates at ownership, remained at $2.3 billion, of which almost everything is denominated in U.S. dollars or linked to that, bearing an average interest rate of 7%. And 81% is placed at the parent. Even after the canceling of $130 million of debt, the principal maturities were left in 2019 plus the ones that are short-term maturing in 2020, stand-alone Pampa amounts to $319 million, which comparing with our cash position of $430 million left, it's -- we are comfortable with that.

Moreover, cash after debt repayment amounts to $760 million, which is down from the $838 billion (sic) [$838 million] in September 2018, mainly because of the expansion CapEx disbursement and devaluation of our peso cash position.

Back in Q4 2018 closing, we were holding 80% of our cash in U.S. dollars. Therefore, net debt remained at $1.4 billion, and net debt to last 12 months EBITDA remained low at 1.3x. In the slide, which also show stand-alone key debt figures for our bondholders.

So this concludes our presentation. Now I will turn towards the operator, who will open the floor for questions. Thank you.

================================================================================

Questions and Answers

--------------------------------------------------------------------------------

Operator [1]

--------------------------------------------------------------------------------

(Operator Instructions) And our first question comes from Bruno Montanari from Morgan Stanley.

--------------------------------------------------------------------------------

Bruno Montanari, Morgan Stanley, Research Division - Equity Analyst [2]

--------------------------------------------------------------------------------

I have a couple of questions on the gas price in an investment cycle. So first, do you think that with the current auction model, prices have reached the trough? Or with perhaps more capacity coming in next year in the summer, prices can decline more? Moving to winter, based on what was disclosed but not approved yet by the government, does the company feel this is the best model for natural gas during the winter season? So were you happy with what has been outlined up to this point? And finally, with all the current pricing environment, how is your appetite to invest in new upstream projects vis-à-vis other businesses of the group in terms of how you rank the priorities to allocate capital in the conglomerate?

--------------------------------------------------------------------------------

Gustavo Mariani, Pampa Energía S.A. - CEO & Vice Chairman [3]

--------------------------------------------------------------------------------

Bruno, Gustavo here. I would have to ask you to rephrase -- not to rephrase, but to review the questions because I missed part of them.

--------------------------------------------------------------------------------

Bruno Montanari, Morgan Stanley, Research Division - Equity Analyst [4]

--------------------------------------------------------------------------------

No worries.

--------------------------------------------------------------------------------

Gustavo Mariani, Pampa Energía S.A. - CEO & Vice Chairman [5]

--------------------------------------------------------------------------------

I got your (inaudible) regarding gas prices, how we'll see that going forward in the summer and in the winter. So I don't have any assurance, but I believe that we've seen probably this summer, we've seen probably development of the (inaudible) plan. But I believe, basically, it's not a -- that is not a long-term price at which reserves are going to really, replenish?

--------------------------------------------------------------------------------

Lida Wang, Pampa Energía S.A. - IR Officer [6]

--------------------------------------------------------------------------------

Develop.

--------------------------------------------------------------------------------

Gustavo Mariani, Pampa Energía S.A. - CEO & Vice Chairman [7]

--------------------------------------------------------------------------------

Develop. So I believe that this summer, we've seen a special situation that was exacerbated by the impact of the Resolution 46 that, as you know, those that -- who are benefited by that plan had, in a way, competitive advantage because they were guaranteed a higher flow price. So the price at which they sold the gas was, in a way, less relevant for them. Regarding the winter, we feel the market is very much intervene. So -- and I don't have any clear view or visibility on whether they will free the market this year, so the 3 or 4 months of the winter theoretically, prices should tend to, in (inaudible), but I'm not that optimistic that, that will happen this year. Business cycle, but can you repeat your question about the investment cycle?

--------------------------------------------------------------------------------

Bruno Montanari, Morgan Stanley, Research Division - Equity Analyst [8]

--------------------------------------------------------------------------------

The final question is...

--------------------------------------------------------------------------------

Gustavo Mariani, Pampa Energía S.A. - CEO & Vice Chairman [9]

--------------------------------------------------------------------------------

Did I answer your...

--------------------------------------------------------------------------------

Bruno Montanari, Morgan Stanley, Research Division - Equity Analyst [10]

--------------------------------------------------------------------------------

Yes, yes, no. It was exactly that. The last question was considering the current pricing environment, if you still have appetite to invest in new upstream gas projects vis-à-vis allocating more capital in other businesses of the conglomerate.

--------------------------------------------------------------------------------

Gustavo Mariani, Pampa Energía S.A. - CEO & Vice Chairman [11]

--------------------------------------------------------------------------------

We took the decision a couple of months ago when this was result to postpone part of the upstream projects that we had. So we are still going to do them, but at the lower pace that we were originally thinking by the end of last year. So in terms of upstream, our goal this year is basically to maintain production at the current level of 7.5 million cubic meters per day. That is -- and we are going to start doing the derisking of our Vaca Muerta formation, especially in the area where we are owners 100%, which is El Mangrullo. And we are thinking about doing that more aggressively this year and also in Sierra Chata. And I think we are going to do this, the derisking on a softer or lower pace this year in El Mangrullo and Sierra Chata for next year or do just mainly do CapEx this year in Sierra Chata.

--------------------------------------------------------------------------------

Operator [12]

--------------------------------------------------------------------------------

(Operator Instructions) And our next question comes from Vinicius Tsubone with HSBC.

--------------------------------------------------------------------------------

Vinicius Tsubone, HSBC, Research Division - Analyst of Latam Utilities, Oil & Gas [13]

--------------------------------------------------------------------------------

I would like to know if the new incentive program for the winter season is attractive. If it would be possible for you to adjust your production for this year.

--------------------------------------------------------------------------------

Lida Wang, Pampa Energía S.A. - IR Officer [14]

--------------------------------------------------------------------------------

Vini, are you referring to which incentive program?

--------------------------------------------------------------------------------

Vinicius Tsubone, HSBC, Research Division - Analyst of Latam Utilities, Oil & Gas [15]

--------------------------------------------------------------------------------

Oh, the new one that should be applied for the winter season. I just want to know if it would be possible for you to increase your gas production if the terms are attractive, I mean, for this year.

--------------------------------------------------------------------------------

Gustavo Mariani, Pampa Energía S.A. - CEO & Vice Chairman [16]

--------------------------------------------------------------------------------

Vini, honestly, we haven't -- I haven't seen in detail the program, and I only read it very quickly. I believe it doesn't -- it's not for this year. It begins in 2020 onwards for 4 years. But it was assuming that there's going to be additional transportation capacity in natural gas, which I don't think it's going to be the case in 2020. So you have to read both incentive plans for natural gas, for winter gas and also the expansion in natural gas transportation capacity. Out of the first week that we've done all these resolutions that came on Friday and during the weekend, there's going to be a lot of work to be done on both of them if a lot of things are unclear and will be adjusted. It's actually that they haven't published anything that is definitive. What they have done in both cases is they gave 1 month for the industry to make the comments and the suggestions. So once they receive all during this month, all the comment from the industry, they will publish the definitive document. But they are definitely not going to impact this year.

--------------------------------------------------------------------------------

Operator [17]

--------------------------------------------------------------------------------

(Operator Instructions) And this concludes our question-and-answer section. At this time, I would like to turn the conference back over to Ms. Wang for any closing remarks.

--------------------------------------------------------------------------------

Gustavo Mariani, Pampa Energía S.A. - CEO & Vice Chairman [18]

--------------------------------------------------------------------------------

Well, I guess, Lida has done -- Lida and the team has done an outstanding job if we get very few questions, so I give my congratulations to them. And as you know, we are every day open to receive your questions and comments. So please feel free to contact us at any moment. Thank you very much for participating in the call. Bye.

--------------------------------------------------------------------------------

Operator [19]

--------------------------------------------------------------------------------

Thank you. This concludes today's presentation. You may disconnect your line at this time, and have a nice day.