Pampa Energia Announces First Quarter 2024 Results

Rhea-AI Summary

Pampa Energia announced its first-quarter 2024 results, noting a 17% year-on-year sales decrease, mainly due to lower gas exports and crude oil sales. Despite this, the company saw a growth in gas production and an 8% decrease in adjusted EBITDA. Net profit attributable to shareholders increased by 89%, while net debt also rose. The company faces challenges with substantial delays in payment collections from CAMMESA.

Insights

Financial Analyst

Pampa Energía's recent report showcases a mixed financial landscape with various factors influencing the company's performance. A 17% year-over-year decline in sales is significant, highlighting potential challenges in the industry sectors of spot and petrochemical prices, as well as international sales dynamics. The increased net profit, up an impressive 89%, may initially seem positive, but it's primarily attributed to non-cash credits and tax impacts, which aren't indicative of ongoing operational profitability. From an investment standpoint, the increased net debt and leverage ratio at 1.1x could be a point of concern, indicating a higher burden of debt relative to the company's earnings. This could suggest a need for more stringent financial management or operational adjustments moving forward.

Energy Sector Analyst

The operational KPIs provide a deeper look into the company's core activities. A 27% increase in oil and gas production reflects a strong operational capacity, particularly in the context of the newly commissioned Presidente Nestor Kirchner Gas Pipeline. The adjustment towards domestic gas sales could signal a strategic pivot that may benefit from local demand patterns and mitigate international market volatility. However, a 3% decrease in power generation gross margin and an 18% drop in average gas price require close monitoring, as they could affect future revenue streams. The energy sector is highly sensitive to commodity price fluctuations and Pampa Energía's results reflect this. Investors should note these operational strengths and weaknesses in the context of the broader energy market trends.

BUENOS AIRES, ARGENTINA / ACCESSWIRE / May 7, 2024 / Pampa Energía S.A. (NYSE:PAM)(BCBA:PAMP), an independent company with active participation in the Argentine electricity and gas value chain, announces the results for the first quarter ended on March 31, 2024.

Pampa's financial information adopts US$ as functional currency, converted into AR$ at transactional FX. However, Transener and TGS adjust their figures for inflation as of March 31, 2024, which are expressed in US$ at the period's closing FX. The previously reported figures remain unchanged.

First quarter 2024 (‘Q1 24') main results¹

7% year-on-year sales decrease, recording US$401 million² in Q1 24, explained by a drop in spot and petrochemical prices and lower gas exports and crude oil sales, partially offset by higher domestic gas sales due to better demand and the commissioning of Presidente Nestor Kirchner Gas Pipeline ('GPNK').

Operating performance highlighted by growing gas production:

Pampa's main operational KPIs				Q1 24				Q1 23			Variation
Power	Generation (GWh)			5,928				5,760				+3	%
	Gross margin (US$/MWh)			20.2				20.8				-3	%
Oil and gas	Production (k boe/day)			73.1				57.5				+27	%
	Gas over total production			94	%			91	%			+3	%
	Average gas price (US$/MBTU)			3.2				4.0				-18	%
	Average oil price (US$/bbl)			68.6				67.7				+1	%
Petrochemicals	Volume sold (k ton)			110				103				+7	%
	Average price (US$/ton)			1,098				1,219				-10	%

Adjusted EBITDA³ reached US$189 million in Q1 24, an 8% decrease compared to Q1 23, mainly explained by a 22% reduction in power generation due to credit impairment on the January invoice to CAMMESA and a 22% reduction in holding and others, offset by improvements of 14% in oil and gas and 58% in petrochemicals.

Net profit attributable to the Company's shareholders of US$267 million, 89% higher than in Q1 23, mainly explained by higher non-cash credit on deferred income tax due to higher inflation than AR$ devaluation, also positively impacted our affiliates' equity income. These effects were offset by the impairment of CAMMESA receivables and lower sales and devaluation profit from AR$ debt.

Net debt increased to US$718 million, resulting in a net leverage ratio of 1.1x, mainly due to the substantial delays in the payment collections from CAMMESA.

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¹ The information is based on financial statements ('FS') prepared according to International Financial Reporting Standards ('IFRS') in force in Argentina.
² It does not include sales from the affiliates CTBSA, Transener and TGS, shown as 'Results for participation in joint businesses and associates'.
³ Consolidated adjusted EBITDA represents the flows before financial items, income tax, depreciations and amortizations, extraordinary and non-cash income and expense, equity income, and includes affiliates' EBITDA at our ownership. Further information on section 3.1.

Consolidated balance sheet
(As of March 31, 2024 and December 2023, in millions)

Consolidated income statement
(For the quarters ended on March 31, 2024 and 2023, in millions)

Note: 1 It considers the Employee stock-based compensation plan shares, which amounted to 3.9 million common shares as of March 31, 2023 and 2024.

For the full version of the Earnings Report, please visit Pampa's Investor Relations website: ri.pampa.com/en.

Information about the videoconference

There will be a videoconference to discuss Pampa's Q1 24 results on Wednesday, May 8, 2024, 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, Horacio Turri, executive director of E&P and Lida Wang, investor relations and sustainability officer at Pampa.

For those interested in participating, please register here.

For further information about Pampa:

investor@pampa.com ri.pampa.com/en

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

SOURCE: 1/3 Pampa Energía S.A.

View the original press release on accesswire.com

FAQ

What were Pampa Energia's first quarter 2024 main results?

Pampa Energia reported a 17% year-on-year sales decrease in the first quarter of 2024, totaling US$401 million, attributed to various factors.

What was Pampa Energia's net profit in the first quarter of 2024?

Pampa Energia's net profit attributable to shareholders was US$267 million in the first quarter of 2024, marking an 89% increase compared to the same period last year.

What is the current net debt of Pampa Energia?

Pampa Energia's net debt increased to US$718 million, resulting in a net leverage ratio of 1.1x, mainly due to substantial delays in payment collections from CAMMESA.