Pampa Energía Announces Nine-Month Period and Third Quarter 2024 Results

Rhea-AI Summary

Pampa Energía reported Q3 2024 results with a 14% year-on-year sales increase to US$540 million, driven by higher gas production, improved power generation metrics, and increased reforming volumes. Adjusted EBITDA grew 14% to US$279 million, while net profit reached US$146 million, showing a 4% decline from Q3 23. Key operational highlights include a 19% increase in power generation to 5,951 GWh and a 9% rise in oil and gas production to 87.5k boe/day. The company's net debt decreased by US$150 million to US$539 million, marking the lowest level in 8 years.

Positive

• 14% year-over-year sales growth to US$540 million
• 14% increase in Adjusted EBITDA to US$279 million
• 19% growth in power generation to 5,951 GWh
• 9% increase in oil and gas production to 87.5k boe/day
• Net debt reduction of US$150 million, reaching lowest level in 8 years
• 14% increase in average oil price to US$71.9/bbl

Negative

• 4% decline in net profit compared to Q3 23
• 6% decrease in average gas price to US$4.4/MBTU
• 15% decline in average petrochemicals price to US$1,092/ton
• 2% decrease in power generation gross margin to US$22.6/MWh

Insights

Financial Analyst

The Q3 2024 results show robust operational performance with significant financial improvements. Revenue increased 14% YoY to $540 million, driven by enhanced gas production and power generation. Key highlights include:

The company achieved its lowest net debt in 8 years at $539 million, demonstrating strong financial management. Operating metrics were particularly strong with power generation up 19% and gas production increasing 9%.

The adjusted EBITDA of $279 million represents a 14% YoY increase, reflecting operational efficiency despite challenging market conditions. The balance sheet remains healthy with total assets of $5.87 billion and a manageable debt profile.

Energy Sector Analyst

The operational performance metrics reveal strong positioning in Argentina's energy market. The 94% gas-weighted production portfolio provides stability, while power generation volumes increased significantly during peak winter demand. However, lower gas prices ($4.4/MBTU vs $4.7/MBTU) partially offset volume gains.

The petrochemical segment shows volume growth but faces margin pressure from lower prices. The company's integrated energy model continues to demonstrate resilience, with strong performance across the electricity and gas value chain.

BUENOS AIRES, ARGENTINA / ACCESSWIRE / November 6, 2024 / 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 nine-month period and quarter ended on September 30, 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 September 30, 2024, which are expressed in US$ at the period's closing FX. The previously reported figures remain unchanged.

Third quarter 2024 (‘Q3 24') main results[1]

14% year-on-year sales increase in Q3 24, reaching US$540 million[2], driven by increased gas production in line with the last Plan Gas round, improved availability, dispatch and prices in power generation, and higher reforming volumes. These effects were partially offset by lower gas sales to industries and Chile, reforming prices and local petchem sales.

Operational KPIs in power generation and gas production outperformed during the winter peak demand

Pampa's main operational KPIs				Q3 24				Q3 23			Variation
Power	Generation (GWh)			5,951				4,985				+19	%
	Gross margin (US$/MWh)			22.6				23.1				-2	%
Oil and gas	Production (k boe/day)			87.5				80.4				+9	%
	Gas over total production			94	%			94	%			-0	%
	Average gas price (US$/MBTU)			4.4				4.7				-6	%
	Average oil price (US$/bbl)			71.9				63.1				+14	%
Petrochemicals	Volume sold (k ton)			128				102				+25	%
	Average price (US$/ton)			1,092				1,285				-15	%

Adjusted EBITDA[3] was US$279 million in Q3 24, 14% higher than Q3 23 , mainly explained by increased deliveries under Plan Gas, power generation and our stakes at Transener and Transportadora de Gas del Sur (‘TGS'), offset by petrochemicals and operating costs.

Net profit to the Company's shareholders of US$146 million, a 4% decline from Q3 23, due to lower gains from financial securities and lesser devaluation over the monetary active position in AR$, partially offset by lesser financial expenses and income tax, and improvements in the operating margin.

Net debt decreased US$150 million vs. June 2024 to US$539 million, the lowest amount and ratio in the last 8 years, explained by the operating cash flow of core businesses and improved collections.

Consolidated balance sheet
(As of September 30, 2024 and December 2023, in millions)

Figures in million		As of 09.30.2024								As of 12.31.2023
		AR$					US$ FX 970.5			AR$					US$ FX 808.45
ASSETS
Property, plant and equipment			2,499,436				2,575				2,056,974				2,544
Intangible assets			94,114				97				77,898				96
Right-of-use assets			12,153				13				17,259				21
Deferred tax asset			101,466				105				2				0
Investments in joint ventures and associates			918,879				947				542,978				672
Financial assets at fair value through profit and loss			26,451				27				28,040				35
Other assets			1,722				2				349				0
Trade and other receivables			43,103				44				14,524				18
Total non-current assets			3,697,324				3,810				2,738,024				3,387
Inventories			231,400				238				166,023				205
Financial assets at amortized cost			77,881				80				84,749				105
Financial assets at fair value through profit and loss			750,900				774				451,883				559
Derivative financial instruments			108				0				250				0
Trade and other receivables			598,582				617				238,294				295
Cash and cash equivalents			322,011				332				137,973				171
Total current assets			1,980,882				2,041				1,079,172				1,335
Assets classified as held for sale			13,357				14				-				-
Total assets			5,691,563				5,865				3,817,196				4,722
EQUITY
Equity attributable to owners of the company			3,092,655				3,187				1,943,736				2,404
Total equity			3,100,822				3,195				1,950,696				2,413
LIABILITIES
Provisions			183,254				189				119,863				148
Income tax and presumed minimum income tax liabilities			71,282				73				44,614				55
Deferred tax liabilities			48,121				50				240,686				298
Defined benefit plans			40,976				42				13,172				16
Borrowings			1,368,963				1,411				989,182				1,224
Trade and other payables			49,286				51				37,301				46
Total non-current liabilities			1,761,882				1,815				1,444,818				1,787
Provisions			8,720				9				4,649				6
Income tax liabilities			199,094				205				14,026				17
Taxes payables			47,984				49				11,427				14
Defined benefit plans			12,148				13				2,695				3
Salaries and social security payable			29,187				30				15,537				19
Derivative financial instruments			2				0				191				0
Borrowings			305,312				315				181,357				224
Trade and other payables			225,170				232				191,800				237
Total current liabilities			827,617				853				421,682				522
Liabilities associated to assets classified as held for sale			1,242				1				-				-
Total liabilities			2,590,741				2,669				1,866,500				2,309
Total liabilities and equity			5,691,563				5,865				3,817,196				4,722

Consolidated income statement

(For the nine-month periods and quarters ended on September 30, 2024 and 2023, in millions)

	Nine-month period												Third quarter
Figures in million	2024						2023						2024						2023
	AR$			US$			AR$			US$			AR$			US$			AR$			US$
Sales revenue		1,294,494			1,441			346,957			1,370			510,706			540			152,701			475
Domestic sales		1,086,342			1,207			285,892			1,117			437,156			465			131,583			409
Foreign market sales		208,152			234			61,065			253			73,550			75			21,118			66
Cost of sales		(831,719	)		(930	)		(209,953	)		(850	)		(344,291	)		(365	)		(92,014	)		(295	)
Gross profit		462,775			511			137,004			520			166,415			175			60,687			180
Selling expenses		(51,380	)		(57	)		(13,333	)		(51	)		(19,798	)		(21	)		(5,610	)		(17	)
Administrative expenses		(124,840	)		(139	)		(34,629	)		(133	)		(53,166	)		(56	)		(14,427	)		(44	)
Exploration expenses		(256	)		-			(1,772	)		(7	)		(89	)		-			(22	)		-
Other operating income		102,716			116			31,627			115			31,935			33			17,338			54
Other operating expenses		(63,966	)		(72	)		(18,079	)		(68	)		(20,912	)		(20	)		(10,704	)		(33	)
Impairment of financial assets		(48,912	)		(56	)		(415	)		(4	)		680			-			(116	)		(1	)
Impairment on PPE, int. assets & inventories		(18,578	)		(19	)		(324	)		(1	)		(18,436	)		(19	)		(1	)		-
Results for part. in joint businesses & associates		94,331			101			14,044			42			62,437			62			5,474			8
Income from the sale of associates		5,765			7			486			1			-			-			486			1
Operating income		357,655			392			114,609			414			149,066			154			53,105			148
Financial income		4,095			4			1,090			4			2,086			2			662			2
Financial costs		(120,932	)		(137	)		(71,096	)		(283	)		(39,244	)		(43	)		(30,018	)		(95	)
Other financial results		99,806			114			95,794			392			36,945			40			40,333			138
Financial results, net		(17,031)			(19)			25,788			113			(213)			(1)			10,977			45
Profit before tax		340,624			373			140,397			527			148,853			153			64,082			193
Income tax		111,715			140			(20,437	)		(69	)		(9,451	)		(7	)		(13,350	)		(40	)
Net income for the period		452,339			513			119,960			458			139,402			146			50,732			153
Attributable to the owners of the Company		452,630			513			119,708			457			139,470			146			50,611			152
Attributable to the non-controlling interest		(291)			-			252			1			(68)			-			121			1
Net income per share to shareholders		332.8			0.4			87.5			0.3			102.6			0.1			37.2			0.1
Net income per ADR to shareholders		8,320.4			9.4			2,187.6			8.4			2,563.8			2.7			930.4			2.8
Average outstanding common shares1		1,360			1,360			1,368			1,368			1,360			1,360			1,360			1,360.0
Outstanding shares by the end of period1		1,360			1,360			1,360			1,360			1,360			1,360			1,360			1,360.0

Note:1 It considers the Employee stock-based compensation plan shares, which amounted to 3.9 million common shares as of September 30, 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 video conference

There will be a video conference to discuss Pampa's Q3 24 results on Thursday, November 7, 2024, at 10:00 a.m. Eastern Standard Time/12:00 p.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 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 accesswire.com

FAQ

What was Pampa Energía's (PAM) revenue in Q3 2024?

Pampa Energía's revenue in Q3 2024 was US$540 million, representing a 14% increase year-over-year.

How much was Pampa Energía's (PAM) net profit in Q3 2024?

Pampa Energía reported a net profit of US$146 million in Q3 2024, showing a 4% decline from Q3 2023.

What was Pampa Energía's (PAM) power generation output in Q3 2024?

Pampa Energía's power generation reached 5,951 GWh in Q3 2024, a 19% increase compared to Q3 2023.

How much did Pampa Energía (PAM) reduce its net debt in Q3 2024?

Pampa Energía reduced its net debt by US$150 million in Q3 2024, reaching US$539 million, the lowest level in 8 years.