Q4 2018 Results Call March 12, 2018 10 AM EST / 11 AM ART - - PowerPoint PPT Presentation
Q4 2018 Results Call March 12, 2018 10 AM EST / 11 AM ART - - PowerPoint PPT Presentation
Q4 2018 Results Call March 12, 2018 10 AM EST / 11 AM ART Disclaimer The material that follows is a presentation of general background information about Pampa Energa SA as of the date of the presentation. It is information in summary form and
The material that follows is a presentation of general background information about Pampa Energía SA as of the date of the
- presentation. It is information in summary form and does not purport to be complete. It is not intended to be relied upon as advice
to potential investors. This presentation is strictly confidential and may not be disclosed to any other person. No representation or warranty, express or implied, is made concerning, and no reliance should be placed on, the accuracy, fairness, or completeness of the information presented herein. This presentation contains information and statements that are forward-looking within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended (the 'Securities Act') and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. Forward-looking statements are statements that are not historical facts. These statements are only predictions based on our current assumptions, expectations and projections about future events. Forward-looking statements may be identified by the words 'believe', 'expect', 'anticipate', 'target', or similar expressions. While Pampa' s management believes that the expectations reflected in such forward-looking statements are reasonable, investors are cautioned that forward-looking information and statements are subject to various risks and uncertainties, many of which are difficult to predict and are generally beyond the control of Pampa, which could cause actual results and developments to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include, but are not limited to, changing business, regulatory, political or other market conditions in Argentina and elsewhere, the completion of our new generation projects, the completion of our distribution and transmission subsidiaries' tariff revision process, the prospects for growth anticipated by our management, and the other risks and uncertainties discussed in our reports and other documents filed with the U.S. Securities and Exchange Commission. Further, Pampa undertakes no obligation to publicly update its forward-looking statements, whether as a result of new information, future events, or otherwise, nor makes any representation or warranty, expressed or implied, as to the accuracy or completeness of the information contained herein, and nothing contained herein is, or shall be relied upon as a promise
- r representation that any such forward looking statements will be achieved. Management is not making and you should not infer
any representation about the likely existence of any particular future set of facts or circumstances. This presentation does not constitute an offer, or invitation, or solicitation of an offer, to subscribe for or purchase any securities. Neither this presentation nor anything contained herein shall form the basis of any contract or commitment whatsoever. Securities may not be offered or sold in the United States unless they are registered or exempt from registration under the Securities Act. Any
- ffering of securities to be made in the United States will be made by means of a prospectus or offering prepared in connection with
any such offering.
Pampa Energía ● Q4 2018 Earnings Call
Disclaimer
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- Presented by Lida Wang, IRO
- Reporting considerations to take into
account
- 2018 key takeaways
- Q4 2018 consolidated EBITDA
- Results & news by business segment
- Power generation
- Electricity distribution
- Oil & gas upstream
- Petrochemicals
- Holding
– TGS – Transener
- Q4 2018 consolidated net income
- Cash and debt
- Q&A session
Pampa Energía ● Q4 2018 Earnings Call 3
Today’s Agenda
841 1,101
2017 2018
3,586 3,697
2017 2018
37% 27% 4% 7% 24% 25% 25% 25% 8% 19% 190 184 162 274 382 702 725 1,026
1,096
2010 2011 2012 2013 2014 2015 2016 2017 2018 Power Generation Transener Edenor Oil and Gas TGS
Pampa Energía ● Q4 2018 Earnings Call 4
Consolidated Revenues1 Consolidated Adj. EBITDA2 2018 EBITDA Adjusted by Our Ownership3
2018’s Key Takeaways, in US$ Million
Total CapEx by Business Unit4
Note: FX: AoP 2018 AR$28.13/US$, AoP 2017 AR$16.57/US$. Only continuing operations. (1) Figures include Plan Gas and affiliates’ sales at O/S. (2) Figures include affiliates’ EBITDA at O/S. Under IFRS, Greenwind, OldelVal, Refinor, Transener and TGS are not consolidated in our FS. (3) It does not consider petrochemicals, residual R&M, holding and eliminations. (4) All businesses units’ investments at 100%.
2017 2018
+3% +31%
Edenor 11%
Transener 5%
Power 42% TGS 13% E&P 29%
Electricity 58% Oil & Gas 42%
%
2017 2018
Pampa Energía ● Q4 2018 Earnings Call 5
Adjusted EBITDA from Continuing Businesses
In nominal terms, million AR$
Q4 2018 Consolidated Results
Q4 17
Power Generation Electricity Distribution Oil & Gas Refining & Marketing Petro- chemicals Holding, Others & Eliminations
Q4 18
3,546 (114) 1,805 9 35 1,562
- Adj. EBITDA
Q4 18
6,843
+87% nominal AR$
- 12% in US$
FX: AoP Q4 17 AR$17.56/US$, AoP Q4 18 AR$37.11/US$.
94.7% 94.2%
Q4 17 Q4 18
Hydro 27% 18% Wind 3% Thermal 73% 82%
2,693 3,325
Q4 17 Q4 18
1,274 3,546
Q4 17 Q4 18
3,871 MW
Pampa Energía ● Q4 2018 Earnings Call 6
Generation Performance
In GWh
Availability Performance
In % to Installed Capacity
Adjusted EBITDA
In million AR$, nominal terms
- New remuneration scheme for legacy capacity
- Fuel self-procurement developments
- Expansions’ status: Genelba & wind farms
News Update
Power Generation
Q4 18 Q4 17
AR$ devaluation New PPAs in force & full fare for legacy energy Mario Cebreiro wind farm’s EBITDA @ 50% Higher costs for gas, transp., O&M from new units Technical problem at CTGEBA in Q4 17 Major maintenance at CTLL in Q4 17 Full operation of CTIW & MC wind farm Lower dispatch requested at CTG, CTPP and CTP Lower water flow at hydros
Q4 18 Q4 17
3,756 MW
Q4 18 Q4 17
Commissioning
- f MC wind farm
& CTIW CTLL’s steam turbine capacity increase
+178%
- 0.6%
+3%
Power Generation
Pampa Energía ● Q4 2018 Earnings Call 7
Genelba Expansion
Pampa Energía ● Q4 2018 Earnings Call 8
PEPE II & III Wind Farms Expansions
Power Generation
40% 39% 17% 17% 38% 38% 5% 6%
5,063 4,652
Q4 17 Q4 18
2.95 3.04
Q4 17 Q4 18
(495)
- Def. income 381
539 (114)
Q4 17 Q4 18 Pampa Energía ● Q4 2018 Earnings Call 9
Sales Performance
In GWh
- WEM seasonal programming
- Semiannual remuneration update
- Transfer of Edenor’s concession jurisdiction
News Update Adjusted EBITDA
In million AR$, nominal terms
Number of End-Users
In million
Electricity Distribution
Q4 18 Q4 17 Q4 18 Q4 17 Q4 18 Q4 17
Market discipline actions Installation of MIDEs
+3%
Public lighting & shantytowns Industries SMEs Residential Lower demand Mild weather Economic recession Price-demand elasticity 8% lower demand Higher rate & cost
- f energy losses
Higher penalties and operating costs RTI’s full fare implementation + costs update Income from deferred tariff increase in 2017
- 8%
5.9 5.4
Q4 17 Q4 18
46.5 42.5
Q4 17 Q4 18
244 222
Q4 17 Q4 18 10
Domestic Production Performance
In kboe per day
Argentina Crude Oil Production Performance
In kb/d
Adjusted EBITDA from Continuing Businesses
In million AR$, nominal terms
Argentina Gas Production Performance
In mcf/d
Oil & Gas
Q4 18 Q4 17 Q4 18 Q4 17 Q4 17 Q4 18 Q4 18 Q4 17
US$53.9/bbl US$60.3/bbl
Pampa Energía ● Q4 2018 Earnings Call Average Price
US$6.2/MBTU
Price Export parity Production End of service at Medanito La Pampa Slight increase of
- il prod. at El
Tordillo
+39%
Price End of Plan Gas 2 CAMMESA & industries Residential Production R. del Mangrullo El Mangrullo & Río Neuquén Lower gas production at R. del Mangrullo End of service at Medanito La Pampa in Oct-17 Higher gas production at El Mangrullo & Río Neuquén blocks
US$3.4/MBTU
1,295 1,805
Q4 17 Q4 18
FX impact Better oil sale price in US$ Incl. OldelVal’s EBITDA @ 23.1% Lower gas prices in US$ End of Plan Gas 2 Lower production
- f hydrocarbon
Pampa Energía ● Q4 2018 Earnings Call 11
- Natural gas price for power generation
- Changes to the Unconventional Gas Plan
- Public tender for gas supply on a firm basis for distributors
- Operation update
News Update
Oil & Gas
Developed 59% Undeveloped 41% Liquids 12% Natural Gas 88% Argentina 100%
%
Pampa’s certified proven reserves evolution
31% 25%
8% 5%
61% 70%
104 88
Q4 17 Q4 18
(142) 35
Q4 17 Q4 18 Pampa Energía ● Q4 2018 Earnings Call 12
Sales Performance
In thousand ton
- No news
News Update
Petrochemicals
Q4 18 Q4 17 Q4 18 Q4 17
Other SBR Styrene & Polystyrene Lower local and int’l demand of styrene products and SBR Closing of BOPS plant operation in Zárate FX impact Fixed costs’
- ptimization
Excludes contingencies & impairments Lower int’l sale prices in US$ Lower demand Export duty
US$1,021/ton US$955/ton Adjusted EBITDA
In million AR$, nominal terms
1,574 3,621
Q4 17 Q4 18
1,241 1,331
Q4 17 Q4 18
(81) 260
327 350 401 925
647 1,535
Q4 17 Q4 18
Pampa Energía ● Q4 2018 Earnings Call 13
Affiliates’ EBITDA Performance @ 100% Ownership
In million AR$, nominal terms
Adjusted EBITDA
In million AR$, nominal terms
- TGS
- Midstream project in Vaca Muerta
- Public hearing
- Proposal of dividends
- Transener
- Semiannual remuneration update
- Distribution of cash dividends
- Status of repurchase program
- Corporate governance:
- Appointment of CEO and CFO
- +GC Panel
News Update
Holding & Others
TGS
Q4 18 Q4 17 TGS Transener Q4 17 Q4 17 Q4 18 Q4 18
Inflation update RTI + cost update FX impact Lower int’l price and volume
+137%
Transener Holding
Pampa Energía ● Q4 2018 Earnings Call 14
Net Income to Shareholders
In million AR$, nominal terms
Q4 2018 Consolidated Results
6,384 Q4 17
Power Generation Electricity Distribution Oil & Gas Refining & Marketing Petro- chemicals Holding, Others & Eliminations
Q4 18
2,365 (1,136) 5,763 56 (7) (657)
Reported Q4 18 NI to Shareholders +AR$4.9bn nominal +100% in US$
153 166 93 8 129 25 25 176 26
311 197 122 189 513 18 141 13 741 2019 2020 2021 2022 2023 2024 2025 2026 2027
Pampa Edenor Transener @ O/S TGS @ O/S Other affiliates @ O/S
Pampa Energía ● Q4 2018 Earnings Call 15
Summary @ Dec-181 + Debt Cancellations
In US$ million
Gross Debt by Currency Gross Debt by Company
Strong Cash & Debt Position
Principal Debt Profile as of December 31, 20181
In US$ million
Current Credit Ratings for Pampa B B2 B AA- (arg)
Consolidated debt from FS US$2,054 million + Affiliates' debt @ O/S US$226 million Total gross debt2 US$2,280 million Consolidated cash from FS US$682 million + Affiliates' cash @ O/S US$163 million
- Debt reduction after Dec-183
US$(129) million Total cash US$716 million Pampa's net debt US$1,565 million Net Debt/LTM Adj. EBITDA 1.4 x
Pampa US$750m @ 7½ Pampa US$500m @ 7⅜ Edenor US$176m @ 9¾ Transener US$99m @ 9¾ TGS US$500m @ 6¾ Debt cancelled after Q4 18 closing
AR$ 1% US$ Link 2% US$ 97%
%
Pampa 81% Greenwind 2% Edenor 10% TGS 6% Transener 1% Refinor 0%
%
Notes: Affiliates TGS, Transener, Greenwind, OldelVal and Refinor are included at O/S. (1) FX AR$37.7/US$. (2) Includes financial interests. (3) Debt prepayments and settlements at maturity after Q4 18 closing.
Pampa Energía ● Q4 2018 Earnings Call
Thank you! Any Questions?
For further information, contact:
- Gustavo Mariani
CEO
- Ricardo Torres
Vice President
- Mariano Batistella
Executive Director of Planning, Strategy, Downstream & Affiliates
- Lida Wang
Investor Relations Officer The Pampa Energía Building, Maipú 1 (C1084ABA), Ciudad Autónoma de Buenos Aires, Argentina +54 (11) 4344 6000 http://www.pampaenergia.com/ir investor@pampaenergia.com @PampaEnergia
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