Pampa Energía announces results for the quarter ended on March 31, 2021

Rhea-AI Summary

Pampa Energía S.A. (NYSE: PAM) reports a strong Q1 2021 with consolidated revenues of US$321 million, up 11% from US$290 million in Q1 2020. Key drivers included increased gas sales from the Genelba Thermal Power Plant, along with higher petrochemical sales and recovering oil and gas prices. Adjusted EBITDA rose to US$204 million, a 16% increase year-over-year. The company also posted a consolidated gain attributable to owners of US$33 million, a US$19 million rise from the same quarter last year. The electricity distribution segment is classified as a discontinued operation following the sale of its controlling stake in Edenor.

Positive

• Consolidated revenues increased by 11% to US$321 million, driven by higher gas and petrochemical sales.
• Adjusted EBITDA rose to US$204 million, reflecting a 16% year-over-year growth.
• Consolidated gain attributable to owners increased by US$19 million to US$33 million.

Negative

• Lower spot energy revenue impacted overall income despite growth in other segments.
• Higher losses from financial instruments reduced net income.

BUENOS AIRES, Argentina, May 12, 2021 /PRNewswire/ -- Pampa Energía S.A. (NYSE: PAM; Buenos Aires Stock Exchange: PAMP), the largest independent energy integrated company in Argentina, with active participation in the country's electricity and gas value chain, announces the results for the quarter ended on March 31, 2021.

As of January 1, 2019, the Company adopted US$ as functional currency for the reporting of its financial information. The presentation of this information in AR$ is converted at transactional nominal exchange rate ('FX').

However, Edenor (electricity distribution), Transener, TGS and Refinor (holding and others) record their operations in local currency. Thus, the Q1 21 figures are adjusted by inflation as of March 31, 2021 (6.1%), translated to US$ at closing FX of 92.00. Moreover, the Q1 20 figures are adjusted by inflation as of March 31, 2020 (3.8%), translated to US$ at closing FX of 64.47^[1].

On December 28, 2020, it was announced the sale of the controlling stake in Edenor. Therefore, the electricity distribution segment is shown as a discontinued operation for the current and comparative periods. Its analysis is detailed in the Appendix of the Earnings Release.

Main results from the Q1 21^[2]

Consolidated revenues from continuing operations of US$321 million^[3], 11% higher than the US$290 million recorded in Q1 20, explained by the new combined cycle gas turbine at Genelba Thermal Power Plant ('CTGEBA'), thus higher own gas sales to cover said Power Purchase Agreement ('PPA'), higher sale volumes and prices in petrochemicals and the recovery of oil and gas prices, partially offset by lower spot energy revenue and hydrocarbons volume sold.

• Power generation of 4,442 GWh from 15 power plants^[4]
• Production of 43.7 thousand boe per day of hydrocarbons
• Sales of 98 thousand tons of petrochemical products

Consolidated adjusted EBITDA^[5] from continuing operations of US$204 million, 16% higher than the US$175 million in Q1 20, mainly from petrochemicals, and to a lesser extent, from oil and gas, holding and others, and power generation.

Consolidated gain attributable to the owners of the Company of US$33 million, US$19 million higher than Q1 20, mainly due to better operating margin and assets' impairment loss in Q1 20 (US$67 million), partially offset by higher losses from the holding of financial instruments and an income tax charge in Q1 21.

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

Figures in million		As of 3.31.2021			As of 12.31.2020
		AR$	US$ FX 92		AR$	US$ FX 84.15
ASSETS
Property, plant and equipment		147,018	1,598		135,445	1,610
Intangible assets		3,754	41		3,455	41
Right-of-use assets		926	10		867	10
Deferred tax assets		9,230	100		9,082	108
Investments in joint ventures and associates		56,571	615		46,229	549
Financial assets at amortized cost		9,222	100		8,428	100
Financial assets at fair value through profit and loss		1,030	11		942	11
Other assets		60	1		57	1
Trade and other receivables		3,302	36		3,631	43
Total non-current assets		231,113	2,512		208,136	2,473
Inventories		12,471	136		9,766	116
Financial assets at amortized cost		1,144	12		2,062	25
Financial assets at fair value through profit and loss		28,340	308		27,382	325
Derivative financial instruments		8	0		1	-
Trade and other receivables		31,622	344		28,678	341
Cash and cash equivalents		9,254	101		11,900	141
Total current assets		82,839	900		79,789	948
Assets classified as held for sale		141,419	1,537		123,603	1,469
Total assets		455,371	4,950		411,528	4,890
EQUITY
Equity attributable to owners of the company		133,502	1,451		120,247	1,428
Non-controlling interest		32,864	357		28,631	341
Total equity		166,366	1,808		148,878	1,769
LIABILITIES
Investments in joint ventures and associates		168	2		161	2
Provisions		12,805	139		9,326	111
Income tax liabilities		11,540	125		11,004	131
Taxes payables		128	1		128	2
Deferred tax liabilities		-	-		93	1
Defined benefit plans		1,710	19		1,460	17
Borrowings		126,169	1,371		115,428	1,372
Trade and other payables		1,542	17		1,418	16
Total non-current liabilities		154,062	1,675		139,018	1,652
Provisions		1,502	16		1,379	16
Income tax liabilities		556	6		897	11
Taxes payables		3,751	41		3,030	36
Defined benefit plans		289	3		298	4
Salaries and social security payable		1,316	14		1,935	23
Derivative financial instruments		5	0		40	-
Borrowings		17,577	191		20,377	242
Trade and other payables		11,074	120		9,778	116
Total current liabilities		36,070	392		37,734	448
Liabilities associated to assets classified as held for sale		98,873	1,075		85,898	1,021
Total liabilities		289,005	3,141		262,650	3,121
Total liabilities and equity		455,371	4,950		411,528	4,890

Consolidated income statement
(For the quarter ended on March 31, 2021 and 2020, in millions)

		First quarter
Figures in million		2021			2020
		AR$	US$		AR$	US$
Sales revenue		28,635	321		18,036	290
Cost of sales		(16,353)	(185)		(11,161)	(182)
Gross profit		12,282	136		6,875	108
Selling expenses		(542)	(7)		(599)	(10)
Administrative expenses		(2,016)	(23)		(1,536)	(25)
Exploration expenses		(7)	-		(4)	-
Other operating income		976	11		709	11
Other operating expenses		(3,050)	(33)		(458)	(8)
Results for part. in joint businesses and associates		2,226	26		2,069	32
Impairment of PPE, intangible assets and inventories		-	-		(4,316)	(67)
Impairment of financial assets		(103)	(1)		(69)	(1)
Operating income		9,766	109		2,671	40
Financial income		165	2		142	3
Financial costs		(3,986)	(45)		(2,643)	(43)
Other financial results		(2,061)	(24)		(409)	(4)
Financial results, net		(5,882)	(67)		(2,910)	(44)
Profit before tax		3,884	42		(239)	(4)
Income tax		(715)	(8)		439	8
Net income for continuing operations		3,169	34		200	4
Net income (loss) from discontinued operations		525	5		743	12
Net income (loss) for the period		3,694	39		943	16
Attributable to the owners of the Company		3,152	33		775	14
Continuing operations		3,150	33		360	7
Discontinued operations		2	0		415	7
Attributable to the non-controlling interests		542	6		168	2
Net income (loss) per share attributable to shareholders		2.21	0.02		0.47	0.01
From continuing operations		2.21	0.02		0.22	0.00
From discontinued operations		0.00	-		0.25	0.00
Net income (loss) per ADR attributable to shareholders		55.29	0.58		11.87	0.22
From continuing operations		55.25	0.58		5.51	0.11
From discontinued operations		0.04	-		6.36	0.11
Average outstanding common shares		1,425.3			1,632.4
Outstanding common shares by the end of period		1,410.5			1,596.3

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 Q1 21 results on Thursday, May 13, 2021, at 10:00 a.m. Eastern Standard Time/11:00 a.m. Buenos Aires Time. The hosts will be Gustavo Mariani, CEO; Gabriel Cohen, CFO and Lida Wang, investor relations and sustainability officer at Pampa.

For those interested in participating, please register at bit.ly/Pampa1Q21VideoCall. The videoconference call will also be simultaneously webcasted at Pampa's website ri.pampaenergia.com/en.

You may find additional information on the Company at:

-  ri.pampaenergia.com/en -  www.cnv.gov.ar

-  www.sec.gov -  www.bolsar.com

For more information, contact:

Gustavo Mariani
CEO

Gabriel Cohen 
CFO

Lida Wang
Investor relations and sustainability officer

The Pampa Energía Building, Maipú 1 (C1084ABA) City of Buenos Aires, Argentina 
Tel: +54 (11) 4344-6000 
investor@pampaenergia.com  
ri.pampaenergia.com/en

^[1] For further information, see section 3 of Pampa's financial statements ('FS').
^[2] The financial information presented in this document is based on FS prepared according to International Financial Reporting Standards ('IFRS') in force in Argentina.
^[3] It does not include sales from discontinued operations for US$229 million and from the affiliates Greenwind, OldelVal, Refinor, CTBSA, Transener and TGS, which at our ownership account for US$97 million. Under IFRS they are not consolidated in Pampa, thus shown as 'Results from discontinued operations' and the equity income as 'Results for participation in joint businesses and associates'. 
^[4] It includes 100% of Ensenada Barragán Thermal Power Plant ('CTEB') and Mario Cebreiro Wind Farm ('PEMC'), assets operated by Pampa but co-controlled by Pampa, with 50% of equity stake.
^[5] 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 Q1 2021 revenues?

Pampa Energía reported Q1 2021 revenues of US$321 million.

How much did Pampa Energía's adjusted EBITDA increase in Q1 2021?

Adjusted EBITDA for Q1 2021 increased by 16% to US$204 million.

What is the significance of the discontinued operations for Pampa Energía?

The electricity distribution segment is classified as discontinued due to the sale of its controlling stake in Edenor.

What was the net income attributable to owners of Pampa Energía in Q1 2021?

The net income attributable to owners was US$33 million in Q1 2021.

What factors contributed to Pampa Energía's revenue increase in Q1 2021?

The revenue increase was primarily attributed to higher gas sales from the Genelba Thermal Power Plant and recovering prices in petrochemicals and hydrocarbons.