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.

  • Thursday, May 25 2017
    Venezuela:

    - During a televised press conference, the top Public Prosecutor Luisa Ortega Diaz addressed several events regarding the wave of protests in Venezuela. In detail, the prosecutor denounced the possession of arms by the population despite the current ban by the Ministry of Interior, the performance of state security forces and military trials of civilians. One of the statements with greatest impact referred to the cause of death of a young opposition demonstrator product of a metal projectile fired by an official of the Bolivarian

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  • Wednesday, May 24 2017
    Venezuela

    - Finance Minister Ramon Lobo and the Executive Board of the Central Bank of Venezuela (BCV in Spanish) announced the start of operations of the new FX system DICOM. The system will work through two weekly auctions (the first one will take place tomorrow) and a bands’ system where the FX rate will fluctuate – the starting rate has not been announced yet. The official rate will be the lowest offered by those who are adjudicated, but a “contingent” auction will take place in case that such rate exceeds the upper band establis

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  • Tuesday, May 23 2017
    Venezuela:

    - For today, the new FX scheme, DICOM, is set to begin operations, and yesterday the Minister of Foreign Trade and International Investment, Jesus Faria, assured that the main goal is to reduce the impact of the parallel dollar and to increase the assignment of currency for business. It is expected that today further details of the mechanism will be disclosed from the facilities of the Central Bank of Venezuela (BCV for its words in Spanish), so stay tuned for more.

    Argentina:

    - The US Treasury Secretary, Steven Mnuchin, told the Senate yesterday that regulators would review Rosneft’s stake of Citgo Petroleum Corp., this as concerns have emerged over possible control from the Russian company in case that PDVSA fails to make payments on the bonds guaranteed by Citgo’s collateral. Senators raised their concerns – regarding Rosneft’s “control of a major US energy supplier” – on what they consider a national security matter to Mnuchin, who heads the Committee on Foreign Investment in the Unite

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