They used the money they collect from the end users to finance themselves, and pay less than what they should to CAMMESA. In the last few months, they have been paying around 50% of what they should have. 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. So for the future, they won’t need to finance themselves, by using the money that should be paid to CAMMESA. We hope that beginning April or May, the situation will accommodate, but it’s going to get very tough to get to that moment, if the government continues with this – with the same behavior, we have been seeing in the last few months.
Raquel Cardasz: Thank you very much, Nicolás. Next questions come from Cristian Fera from Balanz. First one says it seems the linear hit hard on results. Do you expect this phenomenon to ease by first half of 2024?
Horacio Turri: Well, although we are not meteorologists, we understand that 2024 is coming as a neutral year in terms of hydrology. So, that’s all we have to say about that.
Raquel Cardasz: Thank you. Next one says, considering the north reversal delay by ENARSA, what are your expectations for gas export to Chile during winter? Yes, considering the north reversal delay by ENARSA, what are your expectations for gas during to Chile – for gas export to Chile during winter?
Horacio Turri: Okay. So during the winter, the exports to Chile, particularly through the GasAndes pipeline, which accounts for the most important export share to Chile is capped in 5 million cubic meters day. So, our understanding is that, that will be fully supplied. So that’s the – what we understand is going to be exported to Chile during the winter.
Raquel Cardasz: Thank you very much, Horacio. And the last question from Cristian. He wants to know if we are experiencing delays in CAMMESA?
Gustavo Mariani: Well, yes, I explained at length what we are suffering — the situation of CAMMESA. But basically, what it means is that the invoice that we should have collected early January, we have only collected 50% from the invoice that mature at the beginning of February. We haven’t collected anything, and we will have a new invoice maturing, I think, next Monday. So, next week we will be owed 2.5 months of — 2.5 transactions.
Raquel Cardasz: Thank you.
Nicolás Mindlin: Roughly a transaction for Pampa is around $50 million to – $50 million, between $40 million and $60 million per month of transaction. So as you can imagine this means a significant effort in terms of working capital.
Raquel Cardasz: Thank you very much. Next question comes from Paula La Greca…
Lida Wang: Sorry, this graph that shows here is for the full transaction. So, it’s not like we are today 28 days debate. Today, we are more than 50 days debate. All right? This is just to clarify. And that transaction that Gustavo mentioned is still not collected yet. Once we collect it will be amounting more than 50 days it will be like that.
Raquel Cardasz: Next question comes from Daniel Guardiola from BTG. Any thoughts on [Technical Difficulty] energy?
Gustavo Mariani: We understand that the government is working on regulatory changes, but so far, we don’t have any clarity or visibility on what those changes are effectively going to be.
Raquel Cardasz: Thank you very much. Daniel Guardiola from BTG asked what is the EUR of Rincon de Aranda?
Horacio Turri: We’ve so far drilled and completed only two wells, so it’s too early to give information about the EURs or IP of the block. We still have a long way to go.
Raquel Cardasz: Thank you very much. Thank you. Pedal et Alier [ph] asks, can you explain how Plan Gas works during off peak season? Could you export the remaining production related to Plan Gas extension? Yes. Can you explain how Plan Gas works during off peak season? And could you export the remaining production?
Horacio Turri: Either on peak or off peak season? What you do have is a take or pay that has to be committed by the off taker. And yes, you’re okay to export all the surplus gas to Chile. But as I mentioned before, there is a cap which is the transportation capacity 9 million. Always talking about GasAndes, 9 million during the off peak season and 5 million during the winter.
Raquel Cardasz: Thank you very much. And another question from Pedal et Alier is related to Plan Gas extension since 2028 price was $3.5 per million BTU, is there some price adjustment further?
Horacio Turri: No, there is not.
Gustavo Mariani: It was a fixed price.
Horacio Turri: It was a – everybody bid it and it was awarded from down to top and that was it. It was a tender.
Raquel Cardasz: Thank you, Horacio. Last question is from Alejandra Andrade from JPMorgan. Can you comment on the health of local capital markets?
Nicolás Mindlin: Well, local markets as you know, there is a very tight capital controls. So there are lot of pesos still trapped in the economy. That gives companies and whoever need to cover peso needs great opportunities. You’ve seen us last year issuing local dollars at 5%, dollar-linked bonds at 0%, or peso fixed rates below inflation. So, negative in real terms. These pesos are still available for companies seeking pesos. We’re always ready to take any opportunity to cover our needs, until the REPO [ph] is still tight, I think there will be opportunities for companies to finance in the local markets.
Raquel Cardasz: Thank you, Nicolás.
Gustavo Mariani: Yes. But as the last comment what I wanted to highlight, especially for those of you that like me have a very hard time reading these financial statements, very complicated given the sharp depreciation of the peso just a few weeks before year end, the inflation accounting, et cetera and et cetera. 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. End of 2022, vis-a-vis the end of 2023. And what you see in those two pictures is that among several other things, but just to highlight a few points, Pampa in 2023 increased its power generation capacity by 80 megawatts. Part of that was money spent in 2022, around half of it. The other half of it was around $150 million was spent during 2023.
