Pampa Energía announces fourth quarter 2021 results boosted by Plan Gas and operating performance

Rhea-AI Summary

Pampa Energía S.A. (NYSE: PAM) reported a 42% increase in Q4 2021 sales, reaching US$406 million, driven by higher prices of gas and oil. The company achieved a consolidated profit of US$39 million, contrasting with a net loss of US$463 million in Q4 2020, largely due to previous asset impairments. Adjusted EBITDA grew by 8% to US$199 million. Additionally, net debt decreased to US$866 million from US$1,148 million in 2020. Operational metrics showed improved hydrocarbon production and significant increases in gas and petrochemical prices.

Positive

• 42% increase in Q4 sales to US$406 million.
• Consolidated profit of US$39 million vs. net loss of US$463 million in Q4 2020.
• Adjusted EBITDA rose by 8% to US$199 million.
• Net debt reduced to US$866 million from US$1,148 million in 2020.
• Hydrocarbon production increased by 33% year-on-year.

Negative

• Gross margin decreased by 21% to US$26.1/MWh.
• Power generation fell by 21% year-on-year.

BUENOS AIRES, Argentina, March 10, 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 fiscal year and quarter ended on December 31, 2021.

Pampa's financial information adopts US$ as functional currency, and it's expressed in AR$ at the transactional nominal exchange rate ('FX'). However, our affiliates Transener, TGS and Refinor report under local currency. Hence, their figures are adjusted by inflation as of December 31, 2021, except for previous periods already reported.

Main results from the quarter^[1]

42% year-on-year increase in sales, recording US$406 million^[2] in the fourth quarter 2021 ('Q4 21'), explained by the rise in prices of gas, oil and petrochemical products, increased physical volume sold in all our businesses and higher legacy energy sales, offset by the Power Purchase Agreement ('PPA') maturity at Loma De La Lata Thermal Power Plant ('CTLL')'s steam turbine.

Pampa's main operational KPIs		Q4 21	Q4 20	Variation
Power	Generation (GWh)	4,670	4,400	+6%
	Gross margin (US$/MWh)	26.1	33.2	-21%
Hydrocarbon	Production (k boe/day)	58.1	43.7	+33%
	Gas over total production	91%	90%	+1%
	Average gas price (US$/MBTU)	3.1	2.1	+47%
	Average oil price (US$/bbl)	58.6	41.3	+42%
Petrochemicals	Volume sold (k ton)	114	107	+6%
	Average price (US$/ton)	1,266	795	+59%

8% year-on-year increase in the adjusted EBITDA^[3], recording US$199 million in Q4 21, explained by an increase of US$27 million in oil and gas, and US$5 million in holding and others, offset by decreases of US$16 million in power generation and US$1 million in petrochemicals.

Pampa recorded a consolidated profit attributable to the Company's shareholders of US$39 million, vs. a net loss of US$463 million in the fourth quarter 2020 ('Q4 20'), mainly due to the impairment of assets from discontinued operations in Q4 20, better operating margin in oil and gas, and to lower stock of debt, offset by losses from the holding of financial securities in Q4 21.

Consolidated net debt decreased to US$866 million as of December 31, 2021, recording a continuous and significant reduction compared to the US$1,148 million recorded by the end of 2020.

Consolidated balance sheet
(As of December 31, 2021 and 2020, in millions) 

Figures in million		As of 12.31.2021			As of 12.31.2020
		AR$	US$ FX 102.72		AR$	US$ FX 84.15
ASSETS
Property, plant and equipment		170,390	1,659		135,445	1,610
Intangible assets		3,956	39		3,455	41
Right-of-use assets		1,231	12		867	10
Deferred tax assets		8,675	84		9,082	108
Investments in joint ventures and associates		79,500	774		46,229	549
Financial assets at amortized cost		10,821	105		8,428	100
Financial assets at fair value through profit and loss		2,998	29		942	11
Other assets		61	1		57	1
Trade and other receivables		3,379	33		3,631	43
Total non-current assets		281,011	2,736		208,136	2,473
Inventories		15,888	155		9,766	116
Financial assets at amortized cost		537	5		2,062	25
Financial assets at fair value through profit and loss		47,026	458		27,382	325
Derivative financial instruments		16	0		1	0
Trade and other receivables		40,892	398		28,678	341
Cash and cash equivalents		11,283	110		11,900	141
Total current assets		115,642	1,126		79,789	948
Assets classified as held for sale		-	-		123,603	1,469
Total assets		396,653	3,861		411,528	4,890
EQUITY
Equity attributable to owners of the company		183,431	1,786		120,247	1,429
Non-controlling interest		609	6		28,631	340
Total equity		184,040	1,792		148,878	1,769
LIABILITIES
Investments in joint ventures and associates		386	4		161	2
Provisions		14,444	141		9,326	111
Income tax and presumed minimum income tax liabilities		19,287	188		11,004	131
Taxes payables		-	-		128	2
Deferred tax liabilities		-	-		93	1
Defined benefit plans		2,419	24		1,460	17
Borrowings		139,630	1,359		115,428	1,372
Other payables		1,340	13		1,418	17
Total non-current liabilities		177,506	1,728		139,018	1,652
Provisions		560	5		1,379	16
Income tax liabilities		2,098	20		897	11
Taxes payables		2,314	23		3,030	36
Defined benefit plans		515	5		298	4
Salaries and social security payable		2,876	28		1,935	23
Derivative financial instruments		18	0		40	0
Borrowings		8,165	79		20,377	242
Trade and other payables		18,561	181		9,778	116
Total current liabilities		35,107	342		37,734	448
Liabilities associated to assets classified as held for sale		-	-		85,898	1,021
Total liabilities		212,613	2,070		262,650	3,121
Total liabilities and equity		396,653	3,861		411,528	4,890

 

Consolidated income statement
(For the fiscal years and quarters ended on December 31, 2021 and 2020, in millions)

		Fiscal year						Fourth quarter
Figures in million		2021			2020			2021			2020
		AR$	US$		AR$	US$		AR$	US$		AR$	US$
Sales revenue		144,641	1,508		76,775	1,073		40,901	406		23,106	286
Cost of sales		(91,342)	(955)		(46,850)	(663)		(28,690)	(289)		(14,481)	(181)
Gross profit		53,299	553		29,925	410		12,211	117		8,625	105
Selling expenses		(3,156)	(33)		(1,828)	(26)		(1,404)	(15)		(472)	(6)
Administrative expenses		(9,507)	(99)		(6,588)	(93)		(3,206)	(32)		(1,740)	(22)
Exploration expenses		(61)	-		(29)	-		(11)	-		(8)	-
Other operating income		10,196	105		3,628	51		1,332	13		1,122	14
Other operating expenses		(5,360)	(58)		(2,550)	(36)		(737)	(8)		(769)	(10)
Impairment of financial assets		(220)	(2)		(560)	(9)		9	1		291	4
Impairment of PPE, intangible assets and inventories		(332)	(4)		(10,351)	(139)		(160)	(2)		(6,035)	(72)
Results for part. in joint businesses and associates		11,567	117		6,551	85		3,436	32		1,741	19
Operating income		56,426	579		18,198	243		11,470	106		2,755	32
Financial income		847	10		686	9		228	3		157	1
Financial costs		(17,512)	(185)		(12,528)	(177)		(3,384)	(34)		(3,930)	(50)
Other financial results		(1,545)	(14)		6,131	84		(4,358)	(43)		2,778	36
Financial results, net		(18,210)	(189)		(5,711)	(84)		(7,514)	(74)		(995)	(13)
Profit before tax		38,216	390		12,487	159		3,956	32		1,760	19
Income tax		(7,301)	(77)		(3,122)	(35)		485	6		(391)	(1)
Net income for continuing operations		30,915	313		9,365	124		4,441	38		1,369	18
Net income (loss) from discontinued operations		(7,129)	(75)		(49,333)	(592)		-	-		(47,568)	(569)
Net income (loss) for the period		23,786	238		(39,968)	(468)		4,441	38		(46,199)	(551)
Attributable to the owners of the Company		27,097	273		(31,447)	(367)		4,520	39		(38,603)	(463)
Continuing operations		30,823	312		9,952	132		4,520	39		1,851	24
Discontinued operations		(3,726)	(39)		(41,399)	(499)		-	-		(40,454)	(487)
Attributable to the non-controlling interests		(3,311)	(35)		(8,521)	(101)		(79)	(1)		(7,596)	(88)
Net income (loss) per share attributable to shareholders		19.38	0.20		(20.40)	(0.24)		3.26	0.03		(26.53)	(0.32)
From continuing operations		22.05	0.22		6.46	0.09		3.26	0.03		1.27	0.02
From discontinued operations		(2.67)	(0.03)		(26.85)	(0.32)		-	-		(27.804)	(0.335)
Net income (loss) per ADR attributable to shareholders		484.61	4.88		(509.97)	(5.95)		81.51	0.70		(663.30)	(7.96)
From continuing operations		551.25	5.58		161.39	2.14		81.51	0.70		31.81	0.41
From discontinued operations		(66.64)	(0.70)		(671.36)	(8.09)		-	-		(695.11)	(8.37)
Average outstanding common shares		1,397.9			1,541.6			1,386.3			1,455.0
Outstanding common shares by the end of period		1,386.0			1,453.9			1,386.0			1,453.9

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 Q4 21 results on Friday, March 11, 2022, at 10:00 a.m. Eastern Standard Time/12:00 p.m. Buenos Aires Time. The hosts will be Gustavo Mariani, CEO and Nicolás Mindlin, CFO.

For those interested in participating, please register at bit.ly/Pampa4Q21VC. 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$147 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 Q4 2021 sales figures?

Pampa Energía's Q4 2021 sales reached US$406 million, a 42% increase from the previous year.

How did Pampa Energía's Q4 2021 financial performance compare to Q4 2020?

In Q4 2021, Pampa reported a profit of US$39 million, compared to a net loss of US$463 million in Q4 2020.

What was the adjusted EBITDA for Pampa Energía in Q4 2021?

Pampa Energía's adjusted EBITDA for Q4 2021 was US$199 million, reflecting an 8% increase year-on-year.

How much did Pampa Energía's net debt decrease by at the end of 2021?

Pampa Energía's net debt decreased to US$866 million at the end of 2021, down from US$1,148 million in 2020.

What is the significance of the hydrocarbon production increase for Pampa Energía?

Pampa Energía's hydrocarbon production increased by 33% year-on-year, indicating improved operational efficiency and sales potential.