Pampa Energía announces second quarter 2022 results

Rhea-AI Summary

Pampa Energía S.A. (NYSE: PAM) reported a 34% year-on-year increase in Q2 2022 sales, totaling US$462 million, driven by higher gas and petrochemical prices. Despite excellent operational performance, including an 18% rise in power generation and a 38% growth in gas production, net profit declined by 39% to US$66 million due to financial losses and asset impairments. Adjusted EBITDA rose 6% to US$253 million. Net debt increased to US$902 million, reflecting a net leverage ratio of 1.3x. Pampa will host a videoconference on August 12, 2022, to discuss these results further.

Positive

• 34% rise in sales year-on-year to US$462 million.
• 38% growth in gas production and 18% rise in power generation.
• Adjusted EBITDA increased 6% to US$253 million.
• Strong operational performance, with notable increases in gas and petrochemical prices.

Negative

• Net profit dropped 39% to US$66 million due to financial losses.
• Gross margin decreased by 37% from US$35.0 to US$22.1 per MWh.
• Net debt increased to US$902 million, indicating higher leverage.

BUENOS AIRES, Argentina, Aug. 11, 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 six-month period and quarter ended on June 30, 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 June 30, 2022, except for previous periods already reported.

Main results from the quarter^[1]

34% year-on-year increase in sales, recording US$462 million^[2] in the second quarter 2022 ('Q2 22'), explained by higher volumes and prices for gas, petrochemical products, legacy and Energía Plus energy, partially offset by the end of Power Purchase Agreement ('PPA') at Loma De La Lata Thermal Power Plant ('CTLL')'s steam turbine ('ST') and Piquirenda Thermal Power Plant ('CTP').

Excellent operating performance, led by 38% year-on-year growth in gas production under Plan Gas.Ar, followed by increases in reforming products and thermal generation.

Pampa's main operational KPIs		Q2 22	Q2 21	Variation
Power	Generation (GWh)	4,477	3,808	+18 %
	Gross margin (US$/MWh)	22.1	35.0	-37 %
Hydrocarbon	Production (k boe/day)	64.6	47.7	+35 %
	Gas over total production	92 %	90 %	+2 %
	Average gas price (US$/MBTU)	4.4	3.9	+14 %
	Average oil price (US$/bbl)	72.6	57.7	+26 %
Petrochemicals	Volume sold (k ton)	91	76	+19 %
	Average price (US$/ton)	1,739	1,285	+35 %

6% year-on-year rise in the adjusted EBITDA^[3], recording US$253 million in Q2 22, explained by increases of 39% in oil and gas, 19% in petrochemicals and 22% in holding and others, offset by an 18% decrease in power generation.

Profit attributable to the Company's shareholders of US$66 million, 39% lower than the second quarter 2021 ('Q2 21'), mainly due to losses from holding financial securities and Property, Plant and Equipment ('PPE') impairment in the oil and gas segment, offset by a lower income tax charge and the better operating margin.

Net debt grew to US$902 million, with a net leverage ratio of 1.3x.

Consolidated balance sheet
(As of June 30, 2022 and December 31, 2021, in millions) 

Figures in million		As of 6.30.2022			As of 12.31.2021
		AR$	US$ FX 125.23		AR$	US$ FX 102.72
ASSETS
Property, plant and equipment		213,941	1,708		170,390	1,659
Intangible assets		5,732	46		3,956	39
Right-of-use assets		1,070	9		1,231	12
Deferred tax asset		26,073	208		8,675	84
Investments in joint ventures and associates		109,591	875		79,500	774
Financial assets at amortized cost		12,585	100		10,821	105
Financial assets at fair value through profit and loss		3,654	29		2,998	29
Other assets		69	1		61	1
Trade and other receivables		3,284	26		3,379	33
Total non-current assets		375,999	3,002		281,011	2,736
Inventories		21,590	172		15,888	155
Financial assets at amortized cost		1,276	10		537	5
Financial assets at fair value through profit and loss		56,428	451		47,026	458
Derivative financial instruments		172	1		16	0
Trade and other receivables		59,654	476		40,892	398
Cash and cash equivalents		13,172	105		11,283	110
Total current assets		152,292	1,216		115,642	1,126
Assets classified as held for sale		1,544	12		-	-
Total assets		529,835	4,231		396,653	3,861
EQUITY
Equity attributable to owners of the company		250,953	2,004		183,431	1,786
Non-controlling interest		968	8		609	6
Total equity		251,921	2,012		184,040	1,792
LIABILITIES
Investments in joint ventures		424	3		386	4
Provisions		17,758	142		14,444	141
Income tax and presumed minimum income tax liabilities		26,405	211		19,287	188
Defined benefit plans		3,210	26		2,419	24
Borrowings		175,046	1,398		139,630	1,359
Other payables		1,894	15		1,340	13
Total non-current liabilities		224,737	1,795		177,506	1,728
Provisions		594	5		560	5
Income tax liabilities		10,256	82		2,098	20
Taxes payables		4,499	36		2,314	23
Defined benefit plans		403	3		515	5
Salaries and social security payable		2,411	19		2,876	28
Derivative financial instruments		-	-		18	0
Borrowings		8,746	70		8,165	79
Trade and other payables		26,268	210		18,561	181
Total current liabilities		53,177	425		35,107	342
Total liabilities		277,914	2,219		212,613	2,070
Total liabilities and equity		529,835	4,231		396,653	3,861

 

 

Consolidated income statement
(For the six-month periods and quarters ended on June 30, 2022 and 2021, in millions)

		First half						Second quarter
Figures in million		2022			2021			2022			2021
		AR$	US$		AR$	US$		AR$	US$		AR$	US$
Sales revenue		99,523	874		61,211	667		55,512	462		32,576	346
Cost of sales		(61,259)	(543)		(35,343)	(386)		(34,872)	(295)		(18,990)	(201)
Gross profit		38,264	331		25,868	281		20,640	167		13,586	145
Selling expenses		(3,358)	(30)		(1,083)	(12)		(1,438)	(11)		(541)	(5)
Administrative expenses		(7,326)	(63)		(4,043)	(44)		(3,797)	(31)		(2,027)	(21)
Exploration expenses		(15)	-		(44)	-		(7)	-		(37)	-
Other operating income		4,357	36		4,846	50		3,057	25		3,870	39
Other operating expenses		(2,632)	(23)		(3,831)	(42)		(964)	(8)		(781)	(9)
Impairment of financial assets		(519)	(4)		(196)	(2)		(392)	(3)		(93)	(1)
Impairment of PPE, int. assets & inventories		(4,384)	(35)		(172)	(2)		(4,375)	(35)		(172)	(2)
Results for part. in joint businesses & associates		6,861	57		3,101	34		4,179	32		875	8
Operating income		31,248	269		24,446	263		16,903	136		14,680	154
Financial income		450	5		337	3		204	2		172	1
Financial costs		(8,794)	(78)		(7,841)	(86)		(4,599)	(39)		(3,855)	(41)
Other financial results		(4,170)	(35)		2,931	29		(3,881)	(33)		4,992	53
Financial results, net		(12,514)	(108)		(4,573)	(54)		(8,276)	(70)		1,309	13
Profit before tax		18,734	161		19,873	209		8,627	66		15,989	167
Income tax		(29)	6		(6,106)	(64)		(376)	1		(5,391)	(56)
Net income for continuing operations		18,705	167		13,767	145		8,251	67		10,598	111
Net income (loss) from discontinued operations		-	-		(7,129)	(75)		-	-		(7,654)	(80)
Net income (loss) for the period		18,705	167		6,638	70		8,251	67		2,944	31
Attributable to the owners of the Company		18,469	165		9,773	103		8,165	66		6,621	70
Continuing operations		18,469	165		13,499	142		8,165	66		10,349	108
Discontinued operations		-	(0)		(3,726)	(39)		-	-		(3,728)	(38)
Attributable to the non-controlling interests		236	2		(3,135)	(33)		86	1		(3,677)	(39)
Net income (loss) per share to shareholders		13.37	0.12		6.84	0.07		5.91	0.05		4.68	0.05
From continuing operations		13.37	0.12		9.45	0.10		5.91	0.05		7.32	0.08
From discontinued operations		-	(0.0001)		(2.61)	(0.03)		-	-		(2.64)	(0.03)
Net income (loss) per ADR to shareholders		334.34	2.99		171.10	1.80		147.85	1.20		117.09	1.24
From continuing operations		334.34	2.99		236.33	2.49		147.85	1.20		183.02	1.92
From discontinued operations		-	(0.003)		(65.23)	(0.69)		-	-		(65.93)	(0.67)
Average outstanding common shares1		1,381			1,428			1,381			1,414
Outstanding shares by the end of period1		1,380			1,395			1,380			1,395

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 Q2 22 results on Friday, August 12, 2022, 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/Pampa2Q22VC. 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, CTBSA, Transener and TGS, which at our ownership account for US$98 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.

View original content:https://www.prnewswire.com/news-releases/pampa-energia-announces-second-quarter-2022-results-301604685.html

SOURCE Pampa Energia S.A.

FAQ

What were Pampa Energía's Q2 2022 sales results?

Pampa Energía reported Q2 2022 sales of US$462 million, a 34% increase year-on-year.

How did net profit change for Pampa Energía in Q2 2022?

The net profit for Q2 2022 was US$66 million, a decrease of 39% compared to Q2 2021.

What was the adjusted EBITDA for Pampa Energía in Q2 2022?

Pampa Energía's adjusted EBITDA for Q2 2022 was US$253 million, up 6% year-on-year.

What operational changes did Pampa Energía experience in Q2 2022?

Pampa experienced a 38% increase in gas production and an 18% rise in power generation in Q2 2022.

What is Pampa Energía's current net debt?

As of June 30, 2022, Pampa Energía's net debt grew to US$902 million.