BUENOS AIRES, ARGENTINA / ACCESSWIRE / August 9, 2023 / Pampa Energía S.A. (NYSE:PAM; Buenos Aires Stock Exchange:PAMP), an independent company with active participation in Argentina's electricity and gas value chain, announces the results for the six-month period and quarter ended on June 30, 2023.
Pampa's financial information adopts US$ as functional currency, which is then translated into AR$ at transactional nominal exchange rate (‘FX'). However, for our affiliates, Transener and TGS, their figures are adjusted for inflation as of June 30, 2023, and then translated into US$ at the period's closing FX. The reported figures in US$ from previous periods remain unchanged.
Second quarter 2023 (‘Q2 23') main results[1]
Sales amounted to US $464 million[2], similar to the second quarter 2022 (‘Q2 22'), explained by improved natural gas prices and sold volumes, the incorporation of Engineer Mario Cebreiro Wind Farm (‘PEMC') and Arauco Wind Farm[3] (‘PEA') and higher sales of reforming volumes, offset by lower petrochemical and crude oil prices and lesser legacy energy income.
Operating performance highlighted by reforming and Ensenada Barragán Thermal Power Plant (‘CTEB')'s Combined Cycle (‘CCGT'):
Pampa's main operational KPIs | Q2 23 | Q2 22 | Variation | ||||||
Power | Generation (GWh) | 5,218 | 4,477 | +17% | |||||
| Gross margin (US$/MWh) | 22.6 | 22.1 | +2% | ||||||
Oil and gas | Production (k boe/day) | 67.3 | 64.6 | +4% | |||||
| Gas over total production | 92% | 92% | +0% | ||||||
| Average gas price (US$/MBTU) | 4.7 | 4.4 | +7% | ||||||
| Average oil price (US$/bbl) | 65.1 | 72.6 | -10% | ||||||
Petrochemicals | Volume sold (k ton) | 106 | 91 | +17% | |||||
| Average price (US$/ton) | 1,240 | 1,738 | -29% | ||||||
Adjusted EBITDA[4] reached US $222 million, 13% lower than Q2 22, explained by reductions of 53% in holding and others, 48% in petrochemicals, 4% in oil and gas, and 1% in power generation.
The profit attributable to the Company's shareholders rose 156%, reaching US$166 million, mainly due to gains from holding financial securities and, to a lesser extent, depreciation over the monetary liability net position in AR$, partially offset by increased financial interests due to higher stock of AR$-debt and higher income tax charges.
Net debt continued decreasing, reaching US $787 million, resulting in a net leverage ratio of 1.1x.
[1] The information is based on financial statements (‘FS') prepared according to International Financial Reporting Standards (‘IFRS') in force in Argentina. Only continuing operations are considered.
[2] It does not include sales from the affiliates CTBSA, Transener and TGS, which at our ownership account for US$97 million. Under IFRS affiliates are not consolidated in Pampa, thus shown as ‘Results for participation in joint businesses and associates'.
[3] PEMC is consolidated since Pampa holds full ownership on August 2022; in process of divestment. PEA was acquired on December 2022.
[4] Consolidated adjusted EBITDA represents the results before financial results, income tax, depreciations and amortizations, extraordinary and non-cash income and expense, equity income and other adjustments from the IFRS implementation, and includes affiliates' EBITDA at our ownership. For further information, see section 3.1 of the Earnings Release.
Consolidated balance sheet
(As of June 30, 2023 and December 31, 2022, in millions)
| Figures in million | As of 06.30.2023 | As of 12.31.2022 | ||||||||||||||
| AR$ | US$ FX 256.7 | AR$ | US$ FX 177.16 | |||||||||||||
ASSETS | ||||||||||||||||
Property, plant and equipment | 585,004 | 2,279 | 383,464 | 2,165 | ||||||||||||
Intangible assets | 25,252 | 98 | 24,364 | 138 | ||||||||||||
Right-of-use assets | 1,982 | 8 | 1,521 | 9 | ||||||||||||
Deferred tax asset | 8,491 | 33 | 6,326 | 36 | ||||||||||||
Investments in joint ventures and associates | 240,004 | 935 | 159,833 | 902 | ||||||||||||
Financial assets at amortized cost | 25,853 | 101 | 18,000 | 102 | ||||||||||||
Financial assets at fair value through profit and loss | 7,053 | 27 | 4,867 | 27 | ||||||||||||
Other assets | 121 | 0 | 91 | 1 | ||||||||||||
Trade and other receivables | 6,660 | 26 | 3,415 | 19 | ||||||||||||
Total non-current assets | 900,420 | 3,508 | 601,881 | 3,397 | ||||||||||||
Inventories | 47,714 | 186 | 30,724 | 173 | ||||||||||||
Financial assets at amortized cost | 3,006 | 12 | 1,357 | 8 | ||||||||||||
Financial assets at fair value through profit and loss | 169,968 | 662 | 103,856 | 586 | ||||||||||||
Derivative financial instruments | 146 | 1 | 161 | 1 | ||||||||||||
Trade and other receivables | 116,646 | 454 | 83,328 | 470 | ||||||||||||
Cash and cash equivalents | 50,749 | 198 | 18,757 | 106 | ||||||||||||
Total current assets | 388,229 | 1,512 | 238,183 | 1,344 | ||||||||||||
Assets classified as held for sale | 46,631 | 182 | - | - | ||||||||||||
Total assets | 1,335,280 | 5,202 | 840,064 | 4,742 | ||||||||||||
EQUITY | ||||||||||||||||
Equity attributable to owners of the company | 669,365 | 2,608 | 403,463 | 2,277 | ||||||||||||
Non-controlling interest | 1,684 | 7 | 1,157 | 7 | ||||||||||||
Total equity | 671,049 | 2,614 | 404,620 | 2,284 | ||||||||||||
LIABILITIES | ||||||||||||||||
Provisions | 38,250 | 149 | 26,062 | 147 | ||||||||||||
Income tax and presumed minimum income tax liabilities | 37,356 | 146 | 31,728 | 179 | ||||||||||||
Deferred tax liabilities | 17,596 | 69 | 19,854 | 112 | ||||||||||||
Defined benefit plans | 8,362 | 33 | 4,908 | 28 | ||||||||||||
Borrowings | 333,830 | 1,300 | 237,437 | 1,340 | ||||||||||||
Trade and other payables | 8,485 | 33 | 3,757 | 21 | ||||||||||||
Total non-current liabilities | 443,879 | 1,729 | 323,746 | 1,827 | ||||||||||||
Provisions | 1,003 | 4 | 779 | 4 | ||||||||||||
Income tax liabilities | 4,493 | 18 | 927 | 5 | ||||||||||||
Taxes payables | 7,398 | 29 | 4,966 | 28 | ||||||||||||
Defined benefit plans | 928 | 4 | 1,021 | 6 | ||||||||||||
Salaries and social security payable | 5,404 | 21 | 5,627 | 32 | ||||||||||||
Derivative financial instruments | 133 | 1 | 318 | 2 | ||||||||||||
Borrowings | 91,688 | 357 | 48,329 | 273 | ||||||||||||
Trade and other payables | 74,368 | 290 | 49,731 | 281 | ||||||||||||
Total current liabilities | 185,415 | 722 | 111,698 | 630 | ||||||||||||
Liabilities associated to assets classified as held for sale | 34,937 | 136 | - | - | ||||||||||||
Total liabilities | 664,231 | 2,588 | 435,444 | 2,458 | ||||||||||||
Total liabilities and equity | 1,335,280 | 5,202 | 840,064 | 4,742 | ||||||||||||
Consolidated income statement
(For the six-month periods and quarters ended on June 30, 2023 and 2022, in millions)
| First half | Second quarter | ||||||||||||||||||||||
Figures in million | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
| AR$ | US$ | AR$ | US$ | AR$ | US$ | AR$ | US$ | ||||||||||||||||
Sales revenue | 194,256 | 895 | 99,523 | 874 | 110,341 | 464 | 55,512 | 462 | |||||||||||||||
Local market sales | 154,309 | 708 | 78,708 | 688 | 86,900 | 363 | 44,999 | 372 | |||||||||||||||
Foreign market sales | 39,947 | 187 | 20,815 | 186 | 23,441 | 101 | 10,513 | 90 | |||||||||||||||
Cost of sales | (117,939) | (555) | (60,896) | (540) | (67,401) | (290) | (34,652) | (294) | |||||||||||||||
Gross profit | 76,317 | 340 | 38,627 | 334 | 42,940 | 174 | 20,860 | 168 | |||||||||||||||
Selling expenses | (7,723) | (34) | (3,721) | (33) | (4,530) | (18) | (1,658) | (12) | |||||||||||||||
Administrative expenses | (19,564) | (89) | (7,326) | (63) | (11,254) | (48) | (3,797) | (31) | |||||||||||||||
Exploration expenses | (1,750) | (7) | (15) | - | (1,702) | (7) | (7) | - | |||||||||||||||
Other operating income | 14,289 | 61 | 4,357 | 36 | 9,430 | 45 | 3,057 | 25 | |||||||||||||||
Other operating expenses | (7,375) | (35) | (2,632) | (23) | (3,530) | (22) | (964) | (8) | |||||||||||||||
Impairment of financial assets | (937) | (3) | (519) | (4) | (646) | (3) | (392) | (3) | |||||||||||||||
Rec. of imp. (impairm.) of int. assets & inventories | (323) | (1) | (4,384) | (35) | (734) | (3) | (4,375) | (35) | |||||||||||||||
Results for part. in joint businesses & associates | 8,570 | 34 | 6,861 | 57 | 5,370 | 19 | 4,179 | 32 | |||||||||||||||
Operating income | 61,504 | 266 | 31,248 | 269 | 35,344 | 137 | 16,903 | 136 | |||||||||||||||
Financial income | 428 | 2 | 450 | 5 | 235 | 2 | 204 | 2 | |||||||||||||||
Financial costs | (41,078) | (188) | (8,794) | (78) | (26,367) | (112) | (4,599) | (39) | |||||||||||||||
Other financial results | 55,461 | 254 | (4,170) | (35) | 40,818 | 170 | (3,881) | (33) | |||||||||||||||
Financial results, net | 14,811 | 68 | (12,514) | (108) | 14,686 | 60 | (8,276) | (70) | |||||||||||||||
Profit before tax | 76,315 | 334 | 18,734 | 161 | 50,030 | 197 | 8,627 | 66 | |||||||||||||||
Income tax | (7,087) | (29) | (29) | 6 | (7,730) | (33) | (376) | 1 | |||||||||||||||
Net income for the period | 69,228 | 305 | 18,705 | 167 | 42,300 | 164 | 8,251 | 67 | |||||||||||||||
Attributable to the owners of the Company | 69,097 | 305 | 18,469 | 165 | 42,179 | 164 | 8,165 | 66 | |||||||||||||||
Attributable to the non-controlling interests | 131 | - | 236 | 2 | 121 | 0.1 | 86 | 1 | |||||||||||||||
Net income per share to shareholders | 50.36 | 0.22 | 13.37 | 0.12 | 31.01 | 0.12 | 5.92 | 0.05 | |||||||||||||||
Net income per ADR to shareholders | 1,259.06 | 5.56 | 334.34 | 2.99 | 775.35 | 3.01 | 147.92 | 1.20 | |||||||||||||||
Average outstanding common shares1 | 1,372 | 1,372 | 1,381 | 1,381 | 1,360 | 1,360 | 1,380 | 1,380.0 | |||||||||||||||
Outstanding shares by the end of period1 | 1,360 | 1,360 | 1,380 | 1,380 | 1,360 | 1,360 | 1,380 | 1,380.0 | |||||||||||||||
Note: 1 It considers the shares from the Employee stock-based compensation plan, which as of June 30, 2022 and 2023 amounted to 3.9 million common shares.
For the full version of the Earnings Report, please visit Pampa's Investor Relations website: ri.pampaenergia.com/en.
Information about the videoconference
There will be a video conference to discuss Pampa's Q2 23 results on Thursday, August 10, 2023, at 10:00 a.m. Eastern Standard Time/11:00 a.m. Buenos Aires Time. The hosts will be Gustavo Mariani, CEO, Nicolás Mindlin, CFO, and Lida Wang, investor relations and sustainability officer at Pampa.
For those interested in participating, please register at bit.ly/Pampa2Q2023VC. The video conference call will also be simultaneously webcasted at Pampa's website ri.pampaenergia.com/en.
For further information about Pampa:
SOURCE: 1/3 Pampa Energía S.A.