Pampa Energía announces fourth quarter 2022 results

Rhea-AI Summary

Pampa Energía S.A. (NYSE: PAM) announced its fiscal year and Q4 2022 results, showing a 10% year-on-year increase in sales to US$448 million, driven by higher natural gas prices and petrochemical product sales. Adjusted EBITDA decreased by 7% to US$183 million, influenced by declines in holding and power generation sections. However, the profit attributable to shareholders surged to US$113 million, nearly tripling from Q4 2021, primarily from an arbitral compensation in Ecuador. The company reduced its net debt to US$913 million, achieving a net leverage ratio of 1.2x.

Positive

• 10% year-on-year increase in sales to US$448 million.
• Profit attributable to shareholders was US$113 million, a significant increase.
• Net debt decreased to US$913 million with a net leverage ratio of 1.2x.

Negative

• 7% year-on-year decrease in adjusted EBITDA to US$183 million.
• Gross margin per MWh fell by 33%.

BUENOS AIRES, Argentina, March 9, 2023 /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, 2022.

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

Main results from the quarter^[1]

10% year-on-year increase in sales, recording US$448 million^[2] in the fourth quarter 2022 ('Q4 22'), explained by better natural gas prices and higher sales of petrochemical reforming products and legacy energy, offset by the Power Purchase Agreement ('PPA') maturity at Loma De La Lata Thermal Power Plant ('CTLL')'s steam turbine ('ST') and Piquirenda Thermal Power Plant ('CTP').

Outstanding operating performance in every business segment:

Pampa's main operational KPIs		Q4 22	Q4 21	Variation
Power	Generation (GWh)	5,175	4,670	+11 %
	Gross margin (US$/MWh)	17.4	26.1	-33 %
Hydrocarbon	Production (k boe/day)	61.6	58.1	+6 %
	Gas over total production	91 %	91 %	-0 %
	Average gas price (US$/MBTU)	3.9	3.1	+24 %
	Average oil price (US$/bbl)	66.9	58.6	+14 %
Petrochemicals	Volume sold (k ton)	120	114	+5 %
	Average price (US$/ton)	1,285	1,266	+2 %

7% year-on-year decrease in the adjusted EBITDA^[3], recording US$183 million in Q4 22, explained by reductions of 74% in holding and others and 19% in power generation, partially offset by increases of 57% in oil and gas and 68% in petrochemicals.

Profit attributable to the Company's shareholders of US$113 million, almost 3x the fourth quarter 2021 ('Q4 21') figure, mainly due to Ecuador's arbitral compensation, higher gains from holding financial securities and depreciation over the passive monetary position in AR$. Certain PPAs' maturity, higher income tax charges and financial interests partially offset the higher net income.

Net debt continued decreasing, reaching US$913 million, with a net leverage ratio of 1.2x.

Consolidated balance sheet 
(As of December 31, 2022 and 2021, in millions) 

Figures in million		As of 12.31.2022			As of 12.31.2021
		AR$	US$ FX 177,16		AR$	US$ FX 102,72
ASSETS
Property, plant and equipment		383,464	2,165		170,390	1,659
Intangible assets		24,364	138		3,956	39
Right-of-use assets		1,521	9		1,231	12
Deferred tax asset		6,326	36		8,675	84
Investments in joint ventures and associates		159,833	902		79,500	774
Financial assets at amortized cost		18,000	102		10,821	105
Financial assets at fair value through profit and loss		4,867	27		2,998	29
Other assets		91	1		61	1
Trade and other receivables		3,415	19		3,379	33
Total non-current assets		601,881	3,397		281,011	2,736
Inventories		30,724	173		15,888	155
Financial assets at amortized cost		1,357	8		537	5
Financial assets at fair value through profit and loss		103,856	586		47,026	458
Derivative financial instruments		161	1		16	0
Trade and other receivables		83,328	470		40,892	398
Cash and cash equivalents		18,757	106		11,283	110
Total current assets		238,183	1,344		115,642	1,126
Total assets		840,064	4,742		396,653	3,861
EQUITY
Equity attributable to owners of the company		403,463	2,277		183,431	1,786
Non-controlling interest		1,157	7		609	6
Total equity		404,620	2,284		184,040	1,792
LIABILITIES
Investments in joint ventures		-	-		386	4
Provisions		26,062	147		14,444	141
Income tax and presumed minimum income tax liabilities		31,728	179		19,287	188
Deferred tax liabilities		19,854	112		-	-
Defined benefit plans		4,908	28		2,419	24
Borrowings		237,437	1,340		139,630	1,359
Trade and other payables		3,757	21		1,340	13
Total non-current liabilities		323,746	1,827		177,506	1,728
Provisions		779	4		560	5
Income tax liabilities		927	5		2,098	20
Taxes payables		4,966	28		2,314	23
Defined benefit plans		1,021	6		515	5
Salaries and social security payable		5,627	32		2,876	28
Derivative financial instruments		318	2		18	0
Borrowings		48,329	273		8,165	79
Trade and other payables		49,731	281		18,561	181
Total current liabilities		111,698	630		35,107	342
Total liabilities		435,444	2,458		212,613	2,070
Total liabilities and equity		840,064	4,742		396,653	3,861

 

Consolidated income statement 
(For the fiscal year and quarters ended on December 31, 2022 and 2021, in millions)

		Fiscal year						Fourth quarter
Figures in million		2022			2021			2022			2021
		AR$	US$		AR$	US$		AR$	US$		AR$	US$
Sales revenue		242,182	1,829		144,641	1,508		73,434	448		40,901	406
Local market sales		196,723	1,478		121,638	1,270		59,861	364		33,063	328
Foreign market sales		45,459	351		23,003	238		13,573	84		7,838	78
Cost of sales		(150,891)	(1,148)		(91,342)	(955)		(46,094)	(283)		(28,690)	(289)
Gross profit		91,291	681		53,299	553		27,340	165		12,211	117
Selling expenses		(7,218)	(56)		(3,156)	(33)		(2,273)	(15)		(1,404)	(15)
Administrative expenses		(18,708)	(138)		(9,507)	(99)		(6,319)	(37)		(3,206)	(32)
Exploration expenses		(50)	-		(61)	-		(27)	-		(11)	-
Other operating income		19,066	131		10,196	105		8,721	52		1,332	13
Other operating expenses		(5,952)	(46)		(5,360)	(58)		(1,743)	(13)		(737)	(8)
Impairment of financial assets		(1,142)	(8)		(220)	(2)		(470)	(3)		9	1
Impairment of PPE, int. assets & inventories		(4,925)	(38)		(332)	(4)		(665)	(4)		(160)	(2)
Results for part. in joint businesses & associates		16,089	105		11,567	117		2,479	5		3,436	32
Operating income		88,451	631		56,426	579		27,043	150		11,470	106
Financial income		768	5		847	10		171	(1)		228	3
Financial costs		(30,488)	(221)		(17,512)	(185)		(12,361)	(73)		(3,384)	(34)
Other financial results		25,558	166		(1,545)	(14)		21,450	133		(4,358)	(43)
Financial results, net		(4,162)	(50)		(18,210)	(189)		9,260	59		(7,514)	(74)
Profit before tax		84,289	581		38,216	390		36,303	209		3,956	32
Income tax		(19,389)	(124)		(7,301)	(77)		(14,165)	(98)		485	6
Net income for continuing operations		64,900	457		30,915	313		22,138	111		4,441	38
Net income (loss) from discontinued operations		-	-		(7,129)	(75)		-	-		-	-
Net income (loss) for the period		64,900	457		23,786	238		22,138	111		4,441	38
Attributable to the owners of the Company		64,859	456		27,097	273		22,411	113		4,520	39
Continuing operations		64,859	456		30,823	312		22,411	113		4,520	39
Discontinued operations		-	-		(3,726)	(39)		-	-		-	-
Attributable to the non-controlling interests		41	1		(3,311)	(35)		(273)	(2)		(79)	(1)
Net income (loss) per share to shareholders		46.97	0.33		19.29	0.19		16.24	0.08		3.27	0.03
From continuing operations		46.97	0.33		21.94	0.22		16.24	0.08		3.27	0.03
From discontinued operations		-	-		(2.65)	(0.03)		-	-		-	-
Net income (loss) per ADR to shareholders		1,174.13	8.26		482.15	4.86		406.00	2.05		81.77	0.71
From continuing operations		1,174.13	8.26		548.45	5.55		406.00	2.05		81.77	0.71
From discontinued operations		-	-		(66.30)	(0.70)		-	-		-	-
Average outstanding common shares1		1,381			1,405			1,380			1,382
Outstanding shares by the end of period1		1,380			1,382			1,380			1,382

 

Note: 1 It includes shares from the Employee stock-based compensation plan, which as of December 31, 2022 and 2021 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 videoconference to discuss Pampa's Q4 22 results on Monday, March 13, 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/Pampa4Q2022VC. The videoconference call will also be simultaneously webcasted at Pampa's website ri.pampaenergia.com/en.

For further information about Pampa:

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

ü  www.argentina.gob.ar/cnv ü  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 CTBSA, Transener and TGS, which at our ownership account for US$74 million. Under IFRS affiliates 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.

View original content:https://www.prnewswire.com/news-releases/pampa-energia-announces-fourth-quarter-2022-results-301768468.html

SOURCE Pampa Energia S.A.

FAQ

What were Pampa Energía's sales for Q4 2022?

Pampa Energía reported sales of US$448 million for Q4 2022, a 10% increase year-on-year.

What was the profit attributable to shareholders in Q4 2022 for PAM?

The profit attributable to shareholders in Q4 2022 was US$113 million, nearly three times higher than Q4 2021.

How much did Pampa Energía's adjusted EBITDA decrease in Q4 2022?

Adjusted EBITDA for Q4 2022 decreased by 7% to US$183 million.

What is the current net debt level of Pampa Energía?

Pampa Energía's net debt decreased to US$913 million as of December 31, 2022.

What was the gross margin per MWh for Pampa Energía in Q4 2022?

The gross margin per MWh for Pampa Energía in Q4 2022 was US$17.4, down 33% from the previous year.