Pampa Energía Announces Six-Month Period and Second Quarter 2024 Results

Rhea-AI Summary

Pampa Energía S.A. (NYSE:PAM) reported its Q2 2024 results, showing an 8% year-on-year sales increase to US$500 million. This growth was driven by increased gas production from the latest Plan Gas round and seasonal demand. The company's gas production grew by 37%, demonstrating strong operational performance. Adjusted EBITDA rose 30% to US$288 million, mainly due to increases in holding and others, oil and gas, petrochemicals, and power generation. However, net profit attributable to shareholders declined 39% to US$100 million due to lower gains from financial securities and FX differences. The company's net debt decreased to US$691 million, resulting in a net leverage ratio of 1.0x, largely due to improved payment collections from CAMMESA.

Positive

• 8% year-on-year sales increase to US$500 million
• 37% growth in gas production
• 30% increase in Adjusted EBITDA to US$288 million
• Net debt decreased, resulting in a lower net leverage ratio of 1.0x
• Improved payment collections from CAMMESA

Negative

• 39% decline in net profit attributable to shareholders to US$100 million
• Lower gains from financial securities and FX differences
• Impairment on PPE affecting Ensenada Barragán Thermal Power Plant's equity income
• Haircut on certain overdue interests from CAMMESA

Insights

Financial Analyst

Pampa Energía's Q2 2024 results show a mixed performance. While sales increased by 8% year-over-year to $500 million, net profit declined by 39% to $100 million. The revenue growth was primarily driven by increased gas production, but this was offset by lower gas sales to Chile and industries.

The company's adjusted EBITDA rose by 30% to $288 million, indicating improved operational efficiency. However, the decline in net profit was due to lower gains from financial securities, FX differences and an impairment on PPE.

Positively, Pampa's net debt decreased, resulting in a lower net leverage ratio of 1.0x. This improved financial position could provide more flexibility for future investments or shareholder returns.

Energy Sector Analyst

Pampa Energía's Q2 2024 results highlight the company's strong performance in gas production, which grew by 37% year-over-year. This significant increase demonstrates the company's successful execution of its upstream strategy, particularly in capitalizing on the latest round of Plan Gas.

However, the average gas price decreased by 14% to $4.0/MBTU, which could pressure margins. On the other hand, the average oil price increased by 10% to $71.8/bbl, partially offsetting the impact of lower gas prices.

The company's power generation segment saw a slight decline in production but improved its gross margin. This, combined with the strong performance in oil and gas, suggests Pampa is effectively managing its diversified energy portfolio in a challenging market environment.

Market Research Analyst

Pampa Energía's Q2 2024 results reflect the complex dynamics of Argentina's energy market. The company's ability to increase sales and EBITDA in a challenging economic environment is noteworthy. However, investors should be cautious about the decline in net profit and the impairment affecting the Ensenada Barragán Thermal Power Plant.

The improvement in payment collections from CAMMESA is a positive sign, potentially indicating better liquidity in the Argentine electricity market. This could benefit Pampa's cash flow in the future.

The company's focus on gas production aligns with Argentina's push for energy self-sufficiency. However, the lower gas sales to Chile and industries suggest potential headwinds in export markets and domestic industrial demand. Investors should monitor these trends closely as they could impact Pampa's future growth prospects.

BUENOS AIRES, ARGENTIA / ACCESSWIRE / August 7, 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 six-month period and quarter ended on June 30, 2024.

Pampa's financial information adopts US$ as functional currency, converted into AR$ at transactional exchange rate (‘FX'). However, our affiliates Transener and TGS's adjust their figures for inflation as of June 30, 2024, which are expressed in US$ at the period's closing FX. The previously reported figures remain unchanged.

Second quarter 2024 (‘Q2 24') main results[1]

8% year-on-year sales increase achieved in Q2 24, reaching US$500 million[2], driven by increased gas production from the latest round of Plan Gas, seasonal demand and, to a lesser extent, higher domestic reforming volumes, partially offset by lower gas sales to Chile and industries, volume sold of styrenics and Engineer Mario Cebreiro Wind Farm (‘PEMC')'s divestment.

Gas production grew by 37%, showcasing our strong operating performance:

Pampa's main operational KPIs				Q2 24				Q2 23			Variation
Power	Generation (GWh)			5,067				5,218				-3	%
	Gross margin (US$/MWh)			24.7				22.6				+10	%
Oil and gas	Production (k boe/day)			90.8				67.3				+35	%
	Gas over total production			94	%			92	%			+2	%
	Average gas price (US$/MBTU)			4.0				4.7				-14	%
	Average oil price (US$/bbl)			71.8				65.1				+10	%
Petrochemicals	Volume sold (k ton)			111				106				+5	%
	Average price (US$/ton)			1,205				1,240				-3	%

Adjusted EBITDA[3] rose 30% to US$288 million in Q2 24, mainly explained by increases in holding and others, oil and gas and, to a lesser extent, in petrochemicals and power generation.

Net profit attributable to the Company's shareholders of US$100 million, a 39% decline from Q2 23, due to lower gains from financial securities and FX differences over the financial position in AR$, an impairment on PPE affecting Ensenada Barragán Thermal Power Plant (‘CTEB')'s equity income and a haircut on certain overdue interests from the Argentine Wholesale Electricity Market Clearing Company (CAMMESA). Higher sales and lower financial interests and income tax partially offset these variations.

Net debt decreased to US$691 million, resulting in a net leverage ratio of 1.0x, largely due to improved payment collections from CAMMESA.

[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.

Consolidated balance sheet

(As of June 30, 2024 and December 2023, in millions)

Figures in million		As of 06.30.2024								As of 12.31.2023
		AR$				US$ FX 912				AR$				US FX 808.45
ASSETS
Property, plant and equipment			2,395,378				2,627				2,056,974				2,544
Intangible assets			88,689				97				77,898				96
Right-of-use assets			30,308				33				17,259				21
Deferred tax asset			45,252				50				2				0
Investments in joint ventures and associates			824,581				904				542,978				672
Financial assets at fair value through profit and loss			24,857				27				28,040				35
Other assets			357				0				349				0
Trade and other receivables			16,287				18				14,524				18
Total non-current assets			3,425,709				3,756				2,738,024				3,387
Inventories			209,723				230				166,023				205
Financial assets at amortized cost			92,708				102				84,749				105
Financial assets at fair value through profit and loss			602,341				660				451,883				559
Derivative financial instruments			100				0				250				0
Trade and other receivables			500,304				549				238,294				295
Cash and cash equivalents			138,514				152				137,973				171
Total current assets			1,543,690				1,693				1,079,172				1,335
Total assets			4,969,399				5,449				3,817,196				4,722
EQUITY
Equity attributable to owners of the company			2,742,490				3,007				1,943,736				2,404
Total equity			2,750,165				3,016				1,950,696				2,413
LIABILITIES
Provisions			164,997				181				119,863				148
Income tax and presumed minimum income tax liabilities			66,294				73				44,614				55
Deferred tax liabilities			46,807				51				240,686				298
Defined benefit plans			25,033				27				13,172				16
Borrowings			1,217,319				1,335				989,182				1,224
Trade and other payables			35,539				39				37,301				46
Total non-current liabilities			1,555,989				1,706				1,444,818				1,787
Provisions			8,268				9				4,649				6
Income tax liabilities			131,963				145				14,026				17
Taxes payables			44,133				48				11,427				14
Defined benefit plans			2,557				3				2,695				3
Salaries and social security payable			18,618				20				15,537				19
Derivative financial instruments			112				0				191				0
Borrowings			246,274				270				181,357				224
Trade and other payables			211,320				232				191,800				237
Total current liabilities			663,245				727				421,682				522
Total liabilities			2,219,234				2,433				1,866,500				2,309
Total liabilities and equity			4,969,399				5,449				3,817,196				4,722

Consolidated income statement

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

		First half												Second quarter
Figures in million		2024						2023						2024						2023
		AR$			US$			AR$			US$			AR$			US$			AR$			US$
Sales revenue			783,788			901			194,256			895			446,412			500			110,341			464
Domestic sales			649,186			742			154,309			708			374,607			416			86,900			363
Foreign market sales			134,602			159			39,947			187			71,805			84			23,441			101
Cost of sales			(487,428	)		(565	)		(117,939	)		(555	)		(272,245	)		(307	)		(67,401	)		(290	)
Gross profit			296,360			336			76,317			340			174,167			193			42,940			174
Selling expenses			(31,582	)		(36	)		(7,723	)		(34	)		(18,002	)		(20	)		(4,530	)		(18	)
Administrative expenses			(71,674	)		(83	)		(20,202	)		(89	)		(37,436	)		(42	)		(11,681	)		(48	)
Exploration expenses			(167	)		-			(1,750	)		(7	)		(85	)		-			(1,702	)		(7	)
Other operating income			70,781			83			14,289			61			41,789			48			9,430			45
Other operating expenses			(43,054	)		(52	)		(7,375	)		(35	)		(16,669	)		(21	)		(3,530	)		(22	)
Impairment of financial assets			(49,592	)		(56	)		(299	)		(3	)		(19,762	)		(22	)		(219	)		(3	)
Recovery/(accrual) of impairment on int. assets & inventories			(142	)		-			(323	)		(1	)		(110	)		-			(734	)		(3	)
Results for participation in joint businesses & associates			31,894			39			8,570			34			(19,522	)		(22	)		5,370			19
Income from the sale of associates			5,765			7			-			-			4,307			5			-			-
Operating income			208,589			238			61,504			266			108,677			119			35,344			137
Financial income			2,009			2			428			2			662			-			235			2
Financial costs			(81,688	)		(94	)		(41,078	)		(188	)		(37,733	)		(41	)		(26,367	)		(112	)
Other financial results			62,861			74			55,461			254			19,056			22			40,818			170
Financial results, net			(16,818)			(18)			14,811			68			(18,015)			(19)			14,686			60
Profit before tax			191,771			220			76,315			334			90,662			100			50,030			197
Income tax			121,166			147			(7,087	)		(29	)		(1,521	)		(1	)		(7,730	)		(33	)
Net income for the period			312,937			367			69,228			305			89,141			99			42,300			164
Attributable to the owners of the Company			313,160			367			69,097			305			90,061			100			42,179			164
Attributable to the non-controlling interest			(223)			-			131			-			(920)			(1.0)			121			-
Net income per share to shareholders			230.3			0.3			50.4			0.2			66.2			0.1			31.0			0.1
Net income per ADR to shareholders			5,756.6			6.7			1,259.1			5.6			1,655.5			1.8			775.4			3.0
Average outstanding common shares1			1,360						1,372						1,360						1,360			1,360.0
Outstanding shares by the end of period1			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 June 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 videoconference

There will be a videoconference to discuss Pampa's Q2 24 results on Thursday, August 8, 2024, at 10:00 a.m. Eastern Standard Time/11:00 a.m. Buenos Aires Time. The hosts will be Nicolás Mindlin, CFO, Horacio Turri, executive director of E&P 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

SOURCE: 1/3 Pampa Energía S.A.

View the original press release on accesswire.com

FAQ

What was Pampa Energía's (PAM) revenue in Q2 2024?

Pampa Energía's revenue in Q2 2024 was US$500 million, representing an 8% year-on-year increase.

How much did Pampa Energía's (PAM) gas production grow in Q2 2024?

Pampa Energía's gas production grew by 37% in Q2 2024 compared to the same period last year.

What was Pampa Energía's (PAM) Adjusted EBITDA for Q2 2024?

Pampa Energía's Adjusted EBITDA for Q2 2024 was US$288 million, a 30% increase from the previous year.

How did Pampa Energía's (PAM) net profit change in Q2 2024?

Pampa Energía's net profit attributable to shareholders declined by 39% to US$100 million in Q2 2024.

What was Pampa Energía's (PAM) net debt as of Q2 2024?

Pampa Energía's net debt decreased to US$691 million as of Q2 2024, resulting in a net leverage ratio of 1.0x.