Pampa Energía announces first quarter 2022 results boosted by hydrocarbon exports and operating performance

Rhea-AI Summary

Pampa Energía S.A. (NYSE: PAM) reported a remarkable 128% year-on-year increase in sales, totaling US$412 million for Q1 2022, driven by rising gas volumes and prices, alongside improved petrochemical pricing. The company generated 4,892 GWh of power, a 10% increase, while hydrocarbon production rose by 32% to 57.5 k boe/day. Adjusted EBITDA increased by 11% to US$226 million. Profit attributable to shareholders surged by US$66 million year-on-year, reaching US$99 million. Net debt decreased to US$845 million, reflecting a solid financial position.

Positive

• 128% year-on-year sales growth to US$412 million in Q1 2022.
• Adjusted EBITDA rose 11% to US$226 million.
• Consolidated profit attributable to shareholders increased to US$99 million, up US$66 million from Q1 2021.
• Hydrocarbon production increased 32% to 57.5 k boe/day.
• Net debt reduced to US$845 million.

Negative

• Gross margin decreased by 4% to US$28.9/MWh.
• Petrochemicals volume sold dropped by 7%.

BUENOS AIRES, May 12, 2022 /PRNewswire/ -- 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 quarter ended on March 31, 2022.

Pampa's financial information adopts US$ as functional currency, and it is expressed in AR$ at transactional nominal exchange rate ('FX'). However, our affiliates Transener, TGS and Refinor report in local currency. Hence, their figures are adjusted by inflation as of March 31, 2022, except for previous periods already reported.

Main results from the quarter¹

28% year-on-year increase in sales, recording US$412 million² in the first quarter 2022 ('Q1 22'), explained by higher gas volumes and prices, petrochemical products prices and legacy energy sales, partially offset by the Power Purchase Agreement ('PPA') maturity at Loma De La Lata Thermal Power Plant ('CTLL')'s steam turbine ('ST').

Pampa's main operational KPIs		Q1 22	Q1 21	Variation
Power	Generation (GWh)	4,892	4,443	+10%
	Gross margin (US$/MWh)	28.9	30.0	-4%
Hydrocarbon	Production (k boe/day)	57.5	43.8	+32%
	Gas over total production	91%	90%	+1%
	Average gas price (US$/MBTU)	3.5	2.8	+27%
	Average oil price (US$/bbl)	69.0	55.4	+25%
Petrochemicals	Volume sold (k ton)	91	98	-7%
	Average price (US$/ton)	1,382	1,052	+31%

Excellent operating performance, led by hydrocarbon exports and higher thermal generation, above national growth, despite seasonality.

11% year-on-year increase in the adjusted EBITDA³, recording US$226 million in Q1 22, explained by increases of US$23 million in oil and gas, US$6 million in power generation and US$5 million in holding and others, offset by a decrease of US$12 million in petrochemicals.

Pampa recorded a consolidated profit attributable to the Company's shareholders of US$99 million, US$66 million higher than the first quarter 2021 ('Q1 21'), mainly due to better operating margin in oil and gas, and lower losses from the holding of financial securities.

Consolidated net debt decreased to US$845 million.

Consolidated balance sheet

(As of March 31, 2022 and December 31, 2021, in millions) 

Figures in million		As of 3.31.2022			As of 12.31.2021
		AR$	US$ FX 111.01		AR$	US$ FX 102.72
ASSETS
Property, plant and equipment		186,940	1,684		170,390	1,659
Intangible assets		4,262	38		3,956	39
Right-of-use assets		1,107	10		1,231	12
Deferred tax asset		15,477	139		8,675	84
Investments in joint ventures and associates		92,220	831		79,500	774
Financial assets at amortized cost		11,700	105		10,821	105
Financial assets at fair value through profit and loss		3,239	29		2,998	29
Other assets		64	1		61	1
Trade and other receivables		3,203	29		3,379	33
Total non-current assets		318,212	2,867		281,011	2,736
Inventories		19,973	180		15,888	155
Financial assets at amortized cost		580	5		537	5
Financial assets at fair value through profit and loss		52,192	470		47,026	458
Derivative financial instruments		126	1		16	0
Trade and other receivables		45,082	406		40,892	398
Cash and cash equivalents		14,624	132		11,283	110
Total current assets		132,577	1,194		115,642	1,126
Total assets		450,789	4,061		396,653	3,861
EQUITY
Equity attributable to owners of the company		213,213	1,921		183,431	1,786
Non-controlling interest		811	7		609	6
Total equity		214,024	1,928		184,040	1,792
LIABILITIES
Investments in joint ventures		385	3		386	4
Provisions		15,622	141		14,444	141
Income tax and presumed minimum income tax liabilities		19,685	177		19,287	188
Defined benefit plans		2,822	25		2,419	24
Borrowings		153,448	1,382		139,630	1,359
Other payables		2,177	20		1,340	13
Total non-current liabilities		194,139	1,749		177,506	1,728
Provisions		599	5		560	5
Income tax liabilities		7,589	68		2,098	20
Taxes payables		2,831	26		2,314	23
Defined benefit plans		472	4		515	5
Salaries and social security payable		1,983	18		2,876	28
Derivative financial instruments		-	-		18	0
Borrowings		7,746	70		8,165	79
Trade and other payables		21,406	193		18,561	181
Total current liabilities		42,626	384		35,107	342
Total liabilities		236,765	2,133		212,613	2,070
Total liabilities and equity		450,789	4,061		396,653	3,861

Consolidated income statement

(For the quarters ended on March 31, 2022 and 2021, in millions)

		First quarter
Figures in million		2022			2021
		AR$	US$		AR$	US$
Sales revenue		44,011	412		28,635	321
Cost of sales		(26,387)	(248)		(16,353)	(185)
Gross profit		17,624	164		12,282	136
Selling expenses		(1,920)	(19)		(542)	(7)
Administrative expenses		(3,529)	(32)		(2,016)	(23)
Exploration expenses		(8)	-		(7)	-
Other operating income		1,300	11		976	11
Other operating expenses		(1,668)	(15)		(3,050)	(33)
Impairment of financial assets		(127)	(1)		(103)	(1)
Impairment of PPE, intangible assets and inventories		(9)	-		-	-
Results for part. in joint businesses and associates		2,682	25		2,226	26
Operating income		14,345	133		9,766	109
Financial income		246	3		165	2
Financial costs		(4,195)	(39)		(3,986)	(45)
Other financial results		(289)	(2)		(2,061)	(24)
Financial results, net		(4,238)	(38)		(5,882)	(67)
Profit before tax		10,107	95		3,884	42
Income tax		347	5		(715)	(8)
Net income for continuing operations		10,454	100		3,169	34
Net income (loss) from discontinued operations		-	-		525	5
Net income (loss) for the period		10,454	100		3,694	39
Attributable to the owners of the Company		10,304	99		3,152	33
Continuing operations		10,304	99		3,150	34
Discontinued operations		-	-		2	(1)
Attributable to the non-controlling interests		150	1		542	6
Net income (loss) per share attributable to shareholders		7.45	0.07		2.21	0.02
From continuing operations		7.45	0.07		2.21	0.02
From discontinued operations		-	-		0.001	(0.001)
Net income (loss) per ADR attributable to shareholders		186.18	1.79		55.29	0.58
From continuing operations		186.18	1.79		55.25	0.60
From discontinued operations		-	-		0.04	(0.02)
Average outstanding common shares		1,383.6			1,425.3
Outstanding common shares by the end of period		1,383.6			1,410.5

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 videoconference to discuss Pampa's Q1 22 results on Friday, May 13, 2022, 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/Pampa1Q22VC. The videoconference call will also be simultaneously webcasted at Pampa's website ri.pampaenergia.com/en.

For further information about Pampa:

investor@pampaenergia.com ri.pampaenergia.com/en

www.argentina.gob.ar/cnv www.sec.gov

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 Greenwind, OldelVal, Refinor, CTBSA, Transener and TGS, which at our ownership account for US$139 million. Under IFRS they are not consolidated in Pampa, thus shown as 'Results for participation in joint businesses and associates'.

³ 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 of the Earnings Release.

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SOURCE Pampa Energia S.A.

FAQ

What were Pampa Energía's sales figures for Q1 2022?

Pampa Energía reported sales of US$412 million for Q1 2022, a 128% increase year-on-year.

How much did the profit attributable to shareholders increase in Q1 2022?

The profit attributable to Pampa's shareholders increased to US$99 million, up US$66 million from the same quarter in 2021.

What was the adjusted EBITDA for Pampa Energía in Q1 2022?

In Q1 2022, Pampa Energía's adjusted EBITDA was US$226 million, reflecting an 11% year-on-year increase.

What was the hydrocarbon production level for Pampa in Q1 2022?

Hydrocarbon production reached 57.5 k boe/day in Q1 2022, which is a 32% increase compared to Q1 2021.

What is Pampa Energía's current net debt?

As of Q1 2022, Pampa Energía's net debt is US$845 million.