Pampa Energía announces solid second quarter 2021 results coupled with record high gas production

Rhea-AI Summary

Pampa Energía S.A. (NYSE: PAM) reported a robust second quarter for 2021, achieving a 68% year-on-year sales increase to US$346 million. This growth was driven by higher prices and volumes of hydrocarbons and petrochemicals sold, along with a new gas turbine at Genelba. Adjusted EBITDA rose 79% to US$241 million, while net debt decreased to US$1,042 million. The company also recorded a consolidated profit of US$70 million, reflecting an improvement in operating margins despite challenges from discontinued operations and tax charges.

Positive

• 68% year-on-year increase in sales to US$346 million in Q2 2021.
• 79% increase in adjusted EBITDA, reaching US$241 million.
• Consolidated profit attributable to shareholders rose to US$70 million.
• Net debt decreased to US$1,042 million from US$1,148 million at the end of 2020.

Negative

• Gross margin per MWh declined by 4% year-on-year.
• Higher losses from discontinued operations impacted overall profits.

BUENOS AIRES, Aug. 11, 2021 /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, 2021.

Pampa's financial information adopts US$ as functional currency, and it's expressed in AR$ at the transactional nominal exchange rate ('FX'). However, Transener, TGS and Refinor, from our holding and others segment, report under local currency. Hence, their figures are adjusted by inflation as of June 30, 2021, except for previous periods already reported.

Main results from the quarter¹

68% year-on-year increase in sales, recording US$346 million² in the second quarter 2021 ('Q2 21'), explained by higher price and volume of hydrocarbons and petrochemicals sold, the new combined cycle gas turbine at Genelba Thermal Power Plant ('CTGEBA'), and the retroactive rise as of February 2021 on spot energy remuneration, partially offset by real devaluation affecting spot revenues.

		Q2 21	Q2 20	Variation
Power	Generation (GWh)	3,808	3,461	+10%
	Gross margin (US$/MWh)	35.0	36.6	-4%
Hydrocarbon	Production (k boe/day)	47.7	43.7	+9%
	Gas over total production	90%	91%	-1%
	Average gas price (US$/MBTU)	3.9	2.0	+99%
	Average oil price (US$/bbl)	57.7	20.8	+177%
Petrochemicals	Volume sold (k ton)	76	52	+46%
	Average price (US$/ton)	1,285	741	+73%

79% year-on-year increase in the adjusted EBITDA³, recording US$241 million during Q2 21, explained by rises of US$67 million in oil and gas, US$25 million in power generation, US$12 million in petrochemicals, and US$2 million in holding and others.

Pampa recorded a consolidated profit attributable to the Company's shareholders of US$70 million, US$66 million higher than the second quarter 2020 ('Q2 20'), mainly due to better operating margin, offset by higher losses from discontinued operations and income tax charge in Q2 21.

Net debt decreased to US$1,042 million as of June 30, 2021, showing a continuous reduction compared to the US$1,148 million recorded by the end of 2020.

Consolidated balance sheet
(As of June 30, 2021 and December 31, 2020, in millions)

Figures in million		As of 6.30.2021			As of 12.31.2020
		AR$	US$ FX 95.72		AR$	US$ FX 84.15
ASSETS
Property, plant and equipment		153,639	1,605		135,445	1,610
Intangible assets		4,075	43		3,455	41
Right-of-use assets		1,595	17		867	10
Deferred tax assets		7,146	75		9,082	108
Investments in joint ventures and associates		61,544	643		46,229	549
Financial assets at amortized cost		9,598	100		8,428	100
Financial assets at fair value through profit and loss		3,811	40		942	11
Other assets		61	1		57	1
Trade and other receivables		3,249	34		3,631	43
Total non-current assets		244,718	2,557		208,136	2,473
Inventories		14,894	156		9,766	116
Financial assets at amortized cost		-	-		2,062	25
Financial assets at fair value through profit and loss		32,324	338		27,382	325
Derivative financial instruments		1	0		1	-
Trade and other receivables		45,275	473		28,678	341
Cash and cash equivalents		11,946	125		11,900	141
Total current assets		104,440	1,091		79,789	948
Assets classified as held for sale		-	-		123,603	1,469
Total assets		349,158	3,648		411,528	4,890
EQUITY
Equity attributable to owners of the company		149,939	1,566		120,247	1,428
Non-controlling interest		743	8		28,631	341
Total equity		150,682	1,574		148,878	1,769
LIABILITIES
Investments in joint ventures and associates		416	4		161	2
Provisions		13,428	140		9,326	111
Income tax liabilities		15,750	165		11,004	131
Taxes payables		138	1		128	2
Deferred tax liabilities		-	-		93	1
Defined benefit plans		1,944	20		1,460	17
Borrowings		130,932	1,368		115,428	1,372
Other payables		1,593	17		1,418	16
Total non-current liabilities		164,201	1,715		139,018	1,652
Provisions		363	4		1,379	16
Income tax liabilities		49	1		897	11
Taxes payables		4,295	45		3,030	36
Defined benefit plans		298	3		298	4
Salaries and social security payable		1,372	14		1,935	23
Derivative financial instruments		27	0		40	-
Borrowings		13,094	137		20,377	242
Trade and other payables		14,777	154		9,778	116
Total current liabilities		34,275	358		37,734	448
Liabilities associated to assets classified as held for sale		-	-		85,898	1,021
Total liabilities		198,476	2,074		262,650	3,121
Total liabilities and equity		349,158	3,648		411,528	4,890

  

Consolidated income statement
(For the six-month periods and quarters ended on June 30, 2021 and 2020, in millions)

		First half						Second quarter
Figures in million		2021			2020			2021			2020
		AR$	US$		AR$	US$		AR$	US$		AR$	US$
Sales revenue		61,211	667		32,154	496		32,576	346		14,118	206
Cost of sales		(35,343)	(386)		(20,309)	(318)		(18,990)	(201)		(9,148)	(136)
Gross profit		25,868	281		11,845	178		13,586	145		4,970	70
Selling expenses		(1,083)	(12)		(1,000)	(16)		(541)	(5)		(401)	(6)
Administrative expenses		(4,043)	(44)		(3,174)	(49)		(2,027)	(21)		(1,638)	(24)
Exploration expenses		(44)	-		(9)	-		(37)	-		(5)	-
Other operating income		4,846	50		1,261	20		3,870	39		552	9
Other operating expenses		(3,831)	(42)		(1,276)	(19)		(781)	(9)		(818)	(11)
Impairment of financial assets		(196)	(2)		12	-		(93)	(1)		81	1
Impairment of PPE, intangible assets and inventories		(172)	(2)		(4,316)	(67)		(172)	(2)		-	-
Results for part. in joint businesses and associates		3,101	34		3,158	46		875	8		1,089	14
Operating income		24,446	263		6,501	93		14,680	154		3,830	53
Financial income		337	3		295	4		172	1		153	1
Financial costs		(7,841)	(86)		(5,348)	(82)		(3,855)	(41)		(2,705)	(39)
Other financial results		2,931	29		1,760	28		4,992	53		2,169	32
Financial results, net		(4,573)	(54)		(3,293)	(50)		1,309	13		(383)	(6)
Profit before tax		19,873	209		3,208	43		15,989	167		3,447	47
Income tax		(6,106)	(64)		(1,399)	(14)		(5,391)	(56)		(1,838)	(22)
Net income for continuing operations		13,767	145		1,809	29		10,598	111		1,609	25
Net income (loss) from discontinued operations		(7,129)	(75)		(1,748)	(24)		(7,654)	(80)		(2,491)	(36)
Net income (loss) for the period		6,638	70		61	5		2,944	31		(882)	(11)
Attributable to the owners of the Company		9,773	103		995	18		6,621	70		220	4
Continuing operations		13,499	142		1,942	31		10,349	108		1,582	24
Discontinued operations		(3,726)	(39)		(947)	(13)		(3,728)	(38)		(1,362)	(20)
Attributable to the non-controlling interests		(3,135)	(33)		(934)	(13)		(3,677)	(39)		(1,102)	(15)
Net income (loss) per share attributable to shareholders		6.94	0.07		0.62	0.01		4.75	0.05		0.14	0.003
From continuing operations		9.58	0.10		1.21	0.02		7.43	0.08		1.01	0.02
From discontinued operations		(2.64)	(0.03)		(0.59)	(0.01)		(2.68)	(0.03)		(0.87)	(0.01)
Net income (loss) per ADR attributable to shareholders		173.40	1.83		15.54	0.28		118.84	1.26		3.50	0.07
From continuing operations		239.51	2.52		30.32	0.49		185.75	1.94		25.19	0.38
From discontinued operations		(66.11)	(0.69)		(14.79)	(0.20)		(66.91)	(0.68)		(21.69)	(0.32)
Average outstanding common shares		1,409.0			1,601.3			1,392.9			1,570.2
Outstanding common shares by the end of period		1,388.8			1,557.1			1,388.8			1,557.1

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 21 results on Friday, August 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/Pampa2Q21VideoCall. 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, OldelVal, Refinor, CTBSA, Transener and TGS, which at our ownership account for US$110 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.  

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SOURCE Pampa Energia S.A.