Pampa Energía Announces Fiscal Year and Fourth Quarter 2024 Results

Rhea-AI Summary

Pampa Energía (NYSE:PAM) reported strong Q4 2024 financial results, with sales reaching US$435 million, marking a 20% year-over-year increase. This growth was primarily driven by increased gas demand for power generation, higher crude oil volumes, and improved performance at Power Purchase Agreement units and PEPE 6.

The company's Adjusted EBITDA grew 60% to US$182 million in Q4 24 compared to Q4 23, benefiting from tariff increases and real AR$ appreciation in TGS and Transener operations. The company posted a US$106 million profit for shareholders, compared to a US$155 million loss in Q4 23.

Notably, net debt decreased to US$410 million, reaching its lowest level since 2016, attributed to strong operating cash flows from core businesses and improved days sales outstanding.

Positive

• Sales up 20% YoY to US$435M
• EBITDA increased 60% YoY to US$182M
• Net profit of US$106M vs US$155M loss in Q4 23
• Net debt at lowest level since 2016 (US$410M)

Negative

• Lower gas sales to industries and Chile
• Higher operating and development costs
• Decreased gains from export settlements
• Lower petchem prices

Insights

Financial Analyst

Pampa Energía's Q4 2024 results demonstrate robust financial performance with a 20% year-over-year revenue increase to $435 million, driven by stronger gas demand for power generation and increased crude oil volumes. The company's strategic investments are yielding significant returns, particularly from Power Purchase Agreement units and the PEPE 6 wind farm.

The 60% surge in adjusted EBITDA to $182 million reflects substantial operational improvements and effective cost management despite inflationary pressures. Most impressively, Pampa achieved a $106 million profit compared to a $155 million loss in Q4 2023 – a $261 million positive swing.

Debt reduction continues to strengthen Pampa's balance sheet, with net debt falling to $410 million, reaching its lowest level since 2016. This deleveraging provides enhanced financial flexibility for future capital allocation decisions. The improved days sales outstanding indicates strengthened working capital management and operational efficiency.

The diversified energy portfolio across electricity generation, gas production, and transmission through affiliates like TGS and Transener creates resilience against sector-specific volatility. Tariff increases and real appreciation of the Argentine peso have benefited regulated segments, while higher gas deliveries under Plan Gas bolstered upstream operations.

These results position Pampa Energía favorably within Argentina's energy sector, with a strengthened financial foundation to pursue additional growth opportunities while navigating the country's macroeconomic challenges.

BUENOS AIRES, AR / ACCESS Newswire / March 5, 2025 / Pampa Energía S.A. (NYSE:PAM)(Buenos Aires Stock Exchange:PAMP), an independent company with active participation in the Argentine electricity and gas value chain, announces the results for the fiscal year and quarter ended on December 31, 2024.

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

Fourth quarter 2024 (‘Q4 24') main results^[1]

20% year-on-year sales increase, reaching US$435 million in Q4 24^[2], driven by higher gas demand for power generation and crude oil volumes sold, as well as improved operating performance at Power Purchase Agreements (‘PPA') units, Parque Eólico Pampa Energía 6 (‘PEPE 6') and the reformer. These effects were partially offset by lower gas sales to industries and Chile, and petchem prices.

During Q4 24, gas production and thermal availability stood out:

Pampa's main operational KPIs		Q4 24	Q4 23	Variation
Oil and gas	Production (k boe/day)	61.6	56.4	+9%
	Gas over total production	94%	92%	+2%
	Average gas price (US$/MBTU)	2.9	3.2	-10%
	Average oil price (US$/bbl)	67.6	68.9	-2%
Power	Generation (GWh)	4,797	5,017	-4%
	Gross margin (US$/MWh)	22.8	21.0	+9%
Petrochemicals	Volume sold (k ton)	121	94	+29%
	Average price (US$/ton)	1,017	1,264	-20%

Adjusted EBITDA^[3] was US$182 million in Q4 24, up 60% from Q4 23, mainly explained by tariff increases and AR$ real appreciation in Transportadora de Gas del Sur (‘TGS') and Transener, higher deliveries under Plan Gas and the contributions from PEPE 6 and PPAs, offset by higher operating and development costs, along with lower gains from export settlements at a differential FX.

US$106 million profit to the Company's shareholders vs. a US$155 million loss in Q4 23 due to lower non-cash deferred income tax and higher sales and equity income from affiliates, offset by increased operating costs and lower gains from holding financial securities.

Net debt continued to decline, closing at US$410 million, the lowest amount and ratio since 2016, explained by the strong operating cash flows from core businesses and improved days sales outstanding.

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

		As of 12.31.2024								As of 12.31.2023
Figures in million		AR$				US$ FX 1032				AR$				US$ FX 808.45
ASSETS
Property, plant and equipment			2,690,533				2,607				2,056,974			2,544
Intangible assets			99,170				95				77,898			96
Right-of-use assets			11,330				11				17,259			21
Deferred tax asset			161,694				157				2			0
Investments in joint ventures and associates			1,024,769				993				542,978			672
Financial assets at fair value through profit and loss			28,127				27				28,040			35
Other assets			366				0				349			0
Trade and other receivables			76,798				75				14,524			18
Total non-current assets			4,092,787				3,965				2,738,024			3,387
Inventories			230,095				223				166,023			205
Financial assets at amortized cost			82,628				80				84,749			105
Financial assets at fair value through profit and loss			877,623				850				451,883			559
Derivative financial instruments			979				1				250			0
Trade and other receivables			503,529				488				238,294			295
Cash and cash equivalents			761,231				738				137,973			171
Total current assets			2,456,085				2,380				1,079,172			1,335
Total assets			6,548,872				6,345				3,817,196			4,722
EQUITY
Equity attributable to owners of the company			3,391,127				3,286				1,943,736			2,404
Non-controlling interest			9,167				9				6,960			9
Total equity			3,400,294				3,295				1,950,696			2,413
LIABILITIES
Provisions			141,436				137				119,863			148
Income tax and presumed minimum income tax liabilities			77,284				75				44,614			55
Deferred tax liabilities			50,223				49				240,686			298
Defined benefit plans			31,293				30				13,172			16
Borrowings			1,416,917				1,373				989,182			1,224
Trade and other payables			87,992				84				37,301			46
Total non-current liabilities			1,805,145				1,748				1,444,818			1,787
Provisions			10,725				10				4,649			6
Income tax liabilities			265,008				257				14,026			17
Taxes payables			30,989				30				11,427			14
Defined benefit plans			7,077				7				2,695			3
Salaries and social security payable			40,035				39				15,537			19
Derivative financial instruments			2				0				191			0
Borrowings			728,096				706				181,357			224
Trade and other payables			261,501				253				191,800			237
Total current liabilities			1,343,433				1,302				421,682			522
Total liabilities			3,148,578				3,050				1,866,500			2,309
Total liabilities and equity			6,548,872				6,345				3,817,196			4,722

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

		Fiscal year																Fourth quarter
Figures in million		2024								2023								2024								2023
		AR$				US$				AR$				US$				AR$				US$				AR$				US$
Sales revenue			1,732,901				1,876				513,727				1,732				438,407				435				166,770				362
Domestic sales			1,457,480				1,575				429,205				1,423				371,138				368				143,313				306
Foreign market sales			275,421				301				84,522				309				67,269				67				23,457				56
Cost of sales			(1,181,132	)			(1,279	)			(320,124	)			(1,107	)			(349,413	)			(349	)			(110,171	)			(257	)
Gross profit			551,769				597				193,603				625				88,994				86				56,599				105
Selling expenses			(68,713	)			(74	)			(19,338	)			(66	)			(17,333	)			(17	)			(6,005	)			(15	)
Administrative expenses			(225,718	)			(239	)			(62,721	)			(185	)			(100,878	)			(100	)			(28,092	)			(52	)
Exploration expenses			(20,711	)			(21	)			(1,859	)			(7	)			(20,455	)			(21	)			(87	)			-
Other operating income			161,789				175				57,141				177				59,073				59				25,514				62
Other operating expenses			(80,822	)			(88	)			(29,374	)			(88	)			(16,856	)			(16	)			(11,295	)			(20	)
Impairment of financial assets			(48,932	)			(56	)			283				-				(20	)			-				698				4
Impairment on PPE, int. assets & inventories			(34,058	)			(34	)			(30,784	)			(39	)			(15,480	)			(15	)			(30,460	)			(38	)
Results for part. in joint businesses & associates			145,570				146				4,541				(2	)			51,239				45				(9,503	)			(44	)
Income from the sale of associates			33,128				34				6,262				9				27,363				27				5,776				8
Operating income			413,302				440				117,754				424				55,647				48				3,145				10
Financial income			31,780				32				1,764				5				27,685				28				674				1
Financial costs			(168,927	)			(185	)			(105,359	)			(364	)			(47,995	)			(48	)			(34,263	)			(81	)
Other financial results			198,477				211				155,089				558				98,671				97				59,295				166
Financial results, net			61,330				58				51,494				199				78,361				77				25,706				86
Profit before tax			474,632				498				169,248				623				134,008				125				28,851				96
Income tax			90,158				121				(132,557	)			(318	)			(21,557	)			(19	)			(112,120	)			(249	)
Net income for the period			564,790				619				36,691				305				112,451				106				(83,269	)			(153	)
Attributable to the owners of the Company			564,587				619				34,488				302				111,957				106				(85,220)				(155)
Attributable to the non-controlling interest			203				-				2,203				3				494				-				1,951				2
Net income per share to shareholders			415.1				0.5				25.2				0.2				82.3				0.1				(62.7	)			(0.1	)
Net income per ADR to shareholders			10,378.4				11.4				631.2				5.5				2,058.0				1.9				(1,566.5	)			(2.9	)
Average outstanding common shares1			1,360								1,366								1,360								1,360
Outstanding shares by the end of period1			1,360								1,360								1,360								1,360

Note: 1 It considers the Employee stock-based compensation plan shares, which amounted to 3.9 million common shares as of December 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 Q4 24 results on Thursday, March 6, 2025, at 10:00 a.m. Eastern Standard Time/12:00 p.m. Buenos Aires Time. The hosts will be Gustavo Mariani, CEO, Adolfo Zuberbühler, CFO, Horacio Turri, VP and 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

[1] The information is based on financial statements (‘FS') prepared according to International Financial Reporting Standards (‘IFRS') in force in Argentina.

[2] Sales from the affiliates CTBSA, Transener and TGS are excluded, 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.

SOURCE: 1/3 Pampa Energía S.A.

View the original press release on ACCESS Newswire

FAQ

What was Pampa Energía's (PAM) revenue growth in Q4 2024?

PAM's sales increased 20% year-over-year to US$435 million in Q4 2024.

How much profit did PAM report for Q4 2024?

PAM reported a US$106 million profit for shareholders in Q4 2024, compared to a US$155 million loss in Q4 23.

What is PAM's current net debt position as of Q4 2024?

PAM's net debt decreased to US$410 million, the lowest level since 2016.

What drove PAM's EBITDA growth in Q4 2024?

PAM's 60% EBITDA growth to US$182 million was driven by tariff increases, AR$ real appreciation in TGS and Transener, higher gas deliveries, and contributions from PEPE 6 and PPAs.