Corporate Weeky Report

Corporate Report: Pampa Energia

October 7, 2016BancTrust & Co. Research Team
  • Last July, Pampa Energia finished the acquisition process for Petrobras Argentina S.A, turning it into the largest private energy company in Argentina
  • Currently away from top positions, Pampa is likely to improve in its market share position for both oil and gas by next year, once the merge with Petrobras is totally complete
  • An upcoming issuance, which is set to repay a bridge loan which permitted the acquisition of Petrobras, is expected to be of USD600mn, which would be the largest issuance of the company

Company Background

Pampa Energia S.A. is one of the principal energy companies in Argentina and through its subsidiaries manages to participate in all stages of the electricity activity, from exploration and production to distribution. Its activities are separated over three different segments: generation, transmission and distribution. Moreover, the company has participation in production and distribution of general gas. Just to set an example, through Edenor in the distribution segment, Pampa has an important participation in the Argentine market with an estimate 21% of participation in the whole supply of electricity.

Corporate Weeky Report

Corporate Report: YPF

September 16, 2016Hernán Yellati, Guillermo Quiroga & Oriana Covault
  • Crude production in 2Q16 reached 242.9kb/d, 2.8% less in y-o-y terms as labor strikes affected operations
  • The company is struggling to generate higher cash flow amid the peso depreciation against the US dollar and the still-high inflation rate in Argentina
  • YPF terminated the Bajo Del Toro and Cerro Avispa concessions, while a new JV between YPF and Gazprom in the oil field “Vaca Muerta” has been agreed
    Company Background

Company Background

YPF S.A –acronym for Yacimientos Petroliferos Fiscales- is the principal hydrocarbons company in Argentina and one of the most important in Latin America. Its oil and gas production divides as 46% and 42% respectively, mostly extracted in Argentina. Recently, its importance remains in the fact that is the leader of non-conventional oil production in Latin America as it is developing the “Vaca Muerta” reservoir in Neuquen Province; the second formation of shale gas and the fourth of shale oil, in the world.

Corporate Weeky Report

Corporate Report: PEMEX

July 15, 2016Hernán Yellati, Guillermo Quiroga & Oriana Covault
  • PEMEX generates an approximate 2.5 mbd and more than 6 million of cubic feet of natural gas. During 1Q16 crude oil production was of 2.230 mbd
  • PEMEX financial debt increased 8.7% and it reached USD93.3bn for 1Q2016. There´s still the need for and improvement in the international oil market, as well in the Mexican economy to see a real financial recovery for PEMEX, in our view
  • Last month, the board of Pemex approved its first association called “farm out” to exploit the light-oil, ultra-deep-water Trion field. The exploitation of the Trion field will require an USD11bn investment throughout its duration and potential reserves could reach up to 480 million barrels of light crude oil.

Company Background

Mexican Petroleum, Pemex for its words in Spanish, is a state owned Oil Company headquartered in Mexico City, Mexico and is one of the biggest companies of its kind in Latin America and the world. Throughout the years Pemex has become one of the few completely integrated company in the oil business, carrying every activity in the whole productive chain, from exploration to logistics and marketing.

According to 2015 PIW ranking, Pemex is the 8th largest oil producer worldwide. It generates an approximate 2.5 mbd and more than 6 million of cubic feet of natural gas. Oil proved reserves account up for 12.4 MMMboe as of 2015 and during 1Q16 crude oil production was of 2.230 mbd.

Corporate Weeky Report

Corporate Report: CITGO

July 6, 2016Hernán Yellati, Guillermo Quiroga & Oriana Covault
  • In 2015, CITGO borrowed USD2.8bn through CITGO Holdings, in order to facilitate a one-time dividend to PDVSA
  • CITGO accumulated USD4.08bn in debts in 2015, 114% up vs its 2014’s results
  • CITGO and the Aruba government agreed to reopen a refinery in the island, which will translate into lower logistic and financial costs for PDVSA

Company Background

CITGO Petroleum Corporation, CITGO, is headquartered in the Energy Corridor area of Houston, Texas and has about 6,000 service stations bearers with its brand, 3 refineries, 48 storage and distribution terminals, 3 fully-owned pipelines and 6 jointly-owned pipelines.

The company is a downstream subsidiary of the Venezuelan state-owned oil company, PDVSA, and is dedicated to refine, distribute and commercialize petroleum gasoline, lubricants and petrochemicals in the United States. CITGO is one of the leading companies of its kind in the US, and the largest subsidiary of PDVSA outside Venezuelan territory. The CITGO brand was created in 1965 by Cities Service Company. Occidental Petroleum bought Cities Service in 1982, and CITGO was incorporated as a subsidiary of refining, marketing and transportation in the spring of 1983. It was later bought by the Southland Corporation who sold 50% to the Venezuelan State in 1986 and the rest 50% in 1990.

Corporate Weeky Report

Corporate Report: PDVSA

July 6, 2016Hernán Yellati, Guillermo Quiroga & Oriana Covault
  • In spite of strong official figures not being released this year yet, PDVSA’s performance in 2016 can still be outlined from multilateral agencies information, and private reports 
  • Main financial indicators suggest general difficulties, although some of these can be related to the present status of the oil industry. Commercial and Financial debt remain to be worrisome issues, although we expect financial compromises to be paid this year and the next
  • Global oil market variables will continue to have a deep impact on the future of PDVSA’s results not only through this year, but also in the mid-term 

Company Background

PDVSA is a state-owned oil company in Venezuela and it’s the largest company in the country. Back in 2014, was appointed by Petroleum Intelligence Weekly (PIW) as the fifth largest oil company in the world and, according to Fortune Magazine, the company was the 36th largest company in 2012 in the Global 500 ranking.

Petróleos de Venezuela, S.A. (PDVSA) is a state-owned company created back in 1975 under the Nationalization Law. Its main activities include exploration, exploitation, production, refining, marketing and transportation of Venezuelan oil; these activities are supervised by the Ministry of Oil and Mining leaded by Eulogio Del Pino, President of PDVSA as well.

  • Tuesday, January 16 2018


    - Yesterday the President Nicolas Maduro gave its yearly speech which should be something close to the state of the union and that according to the constitution should be presented in front of the National Assembly. However, this year and arguing the illegality of the National Assembly, the decision was to give his speech in front of the National Constituent Assembly. In detail, more than a state of the union this was one of the usual speech of the President with not much data to collect. Among

  • Monday, January 15 2018


    - The dialogue meeting held in the Dominican Republic between members of the opposition and the government last weekend culminated again without any results. International mediators indicated that although some agreements were reached, several points remain pending and both parties will meet again this Thursday, January 18. In our opinion, it was expected that results would not be achieved,as we have been saying we believe that the most likely to happen is that the negotiation rounds will culmin

  • Friday, January 12 2018


    - The National Electoral Council (CNE in Spanish) announced that it has approved the schedule for the validation of political parties that did not participate in the last municipal elections which it will take place on 27 and 28 of January. The process will be carried out to comply with the order of the National Constituent Assembly (ANC), which has as its sole purpose to be another obstacle for the opposition. We believe that at the moment the attention is focused on the negotiations in the Dom

  • Thursday, January 11 2018


    - The situation regarding Venezuela’s debt with Brazil received yesterday two mixed updates, as the Brazilian Ministry of Finance reported that the first paid an old debt but that it is still in arrears with another payment. In detail, the ministry informed that Venezuela paid USD262.5mn – corresponding to the May-August period of 2017 – on 5 January as part of their commitments under the Reciprocal Credit and Payments Agreement (CCR), which is part of the benefits of the Latin American In


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