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

Rhea-AI Summary

Pampa Energía reported strong Q3 2021 results with a 49% YoY increase in sales, reaching US$435 million driven by higher prices and increased sales volumes. The company's adjusted EBITDA rose 27% YoY to US$262 million. Consolidated profits attributable to shareholders hit US$131 million, up US$53 million from last year. Meanwhile, net debt decreased significantly to US$917 million, reflecting ongoing debt reduction efforts. The firm also plans to discuss these results in a videoconference on November 11, 2021.

Positive

• 49% year-on-year sales growth, reaching US$435 million.
• Adjusted EBITDA increased by 27% YoY, totaling US$262 million.
• Consolidated profit attributable to shareholders rose to US$131 million, up US$53 million YoY.
• Continued reduction in consolidated net debt, decreasing to US$917 million.

Negative

• Gross margin per MWh declined by 23% from the previous year.
• Higher losses reported from holding financial securities compared to the prior year.

BUENOS AIRES, Argentina, Nov. 10, 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 nine-month period and quarter ended on September 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, our affiliates Transener, TGS and Refinor report under local currency. Hence, their figures are adjusted by inflation as of September 30, 2021, except for previous periods already reported.

Main results from the quarter[1]

49% year-on-year increase in sales, recording US$435 million^[2] in the third quarter 2021 ('Q3 21'), explained by the rise in prices of oil, gas and petrochemical products, increased physical volume sold in all our businesses and higher sales of own fuel to thermal power plants.

Pampa's main operational KPIs		Q3 21	Q3 20	Variation
Power	Generation (GWh)	4,512	4,000	+13%
	Gross margin (US$/MWh)	31.0	40.3	-23%
Hydrocarbon	Production (k boe/day)	57.4	46.8	+23%
	Gas over total production	92%	91%	+0%
	Average gas price (US$/MBTU)	4.4	2.5	+76%
	Average oil price (US$/bbl)	61.6	40.4	+52%
Petrochemicals	Volume sold (k ton)	129	90	+43%
	Average price (US$/ton)	1,123	748	+50%

27% year-on-year increase in the adjusted EBITDA^[3], recording US$262 million in Q3 21, explained by an increase of US$68 million in oil and gas, offset by decreases of US$6 million in power generation and US$6 million in holding and others.

Pampa recorded a consolidated profit attributable to the Company's shareholders of US$131 million, US$53 million higher than the third quarter 2020 ('Q3 20'), mainly due to better operating margin in oil and gas, offset by higher losses from the holding of financial securities and the own debt buyback profit recorded in Q3 20.

Consolidated net debt decreased to US$917 million as of September 30, 2021, recording a continuous and significant reduction (mainly AR$-nominated maturities) compared to the US$1,148 million recorded by the end of 2020.

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

Figures in million		As of 9.30.2021			As of 12.31.2020
		AR$	US$ FX 98.74		AR$	US$ FX 84.15
ASSETS
Property, plant and equipment		159,563	1,616		135,445	1,610
Intangible assets		3,814	39		3,455	41
Right-of-use assets		1,440	15		867	10
Deferred tax assets		6,874	70		9,082	108
Investments in joint ventures and associates		70,500	714		46,229	549
Financial assets at amortized cost		9,906	100		8,428	100
Financial assets at fair value through profit and loss		4,780	48		942	11
Other assets		61	1		57	1
Trade and other receivables		2,599	26		3,631	43
Total non-current assets		259,537	2,628		208,136	2,473
Inventories		14,175	144		9,766	116
Financial assets at amortized cost		-	-		2,062	25
Financial assets at fair value through profit and loss		32,940	334		27,382	325
Derivative financial instruments		1	0		1	-
Trade and other receivables		47,840	485		28,678	341
Cash and cash equivalents		17,117	173		11,900	141
Total current assets		112,073	1,135		79,789	948
Assets classified as held for sale		-	-		123,603	1,469
Total assets		371,610	3,764		411,528	4,890
EQUITY
Equity attributable to owners of the company		169,789	1,720		120,247	1,428
Non-controlling interest		675	7		28,631	341
Total equity		170,464	1,726		148,878	1,769
LIABILITIES
Investments in joint ventures and associates		378	4		161	2
Provisions		13,921	141		9,326	111
Income tax liabilities		18,855	191		11,004	131
Taxes payables		151	2		128	2
Deferred tax liabilities		-	-		93	1
Defined benefit plans		2,165	22		1,460	17
Borrowings		134,564	1,363		115,428	1,372
Other payables		1,289	13		1,418	16
Total non-current liabilities		171,323	1,735		139,018	1,652
Provisions		546	6		1,379	16
Income tax liabilities		498	5		897	11
Taxes payables		3,947	40		3,030	36
Defined benefit plans		298	3		298	4
Salaries and social security payable		2,099	21		1,935	23
Derivative financial instruments		16	0		40	-
Borrowings		6,041	61		20,377	242
Trade and other payables		16,378	166		9,778	116
Total current liabilities		29,823	302		37,734	448
Liabilities associated to assets classified as held for sale		-	-		85,898	1,021
Total liabilities		201,146	2,037		262,650	3,121
Total liabilities and equity		371,610	3,764		411,528	4,890

 

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

		Nine-month period						Third quarter
Figures in million		2021			2020			2021			2020
		AR$	US$		AR$	US$		AR$	US$		AR$	US$
Sales revenue		103,740	1,102		53,669	787		42,529	435		21,515	291
Cost of sales		(62,652)	(666)		(32,369)	(482)		(27,309)	(280)		(12,060)	(164)
Gross profit		41,088	436		21,300	305		15,220	155		9,455	127
Selling expenses		(1,752)	(18)		(1,356)	(20)		(669)	(6)		(356)	(4)
Administrative expenses		(6,301)	(67)		(4,848)	(71)		(2,258)	(23)		(1,674)	(22)
Exploration expenses		(50)	-		(21)	-		(6)	-		(12)	-
Other operating income		8,864	92		2,506	37		4,018	42		1,245	17
Other operating expenses		(4,623)	(50)		(1,781)	(26)		(792)	(8)		(505)	(7)
Impairment of financial assets		(229)	(3)		(851)	(13)		(33)	(1)		(863)	(13)
Impairment of PPE, intangible assets and inventories		(172)	(2)		(4,316)	(67)		-	-		-	-
Results for part. in joint businesses and associates		8,131	85		4,810	66		5,030	51		1,652	20
Operating income		44,956	473		15,443	211		20,510	210		8,942	118
Financial income		619	7		529	8		282	4		234	4
Financial costs		(14,128)	(151)		(8,598)	(127)		(6,287)	(65)		(3,250)	(45)
Other financial results		2,813	29		3,353	48		(118)	-		1,593	20
Financial results, net		(10,696)	(115)		(4,716)	(71)		(6,123)	(61)		(1,423)	(21)
Profit before tax		34,260	358		10,727	140		14,387	149		7,519	97
Income tax		(7,786)	(83)		(2,731)	(34)		(1,680)	(19)		(1,332)	(20)
Net income for continuing operations		26,474	275		7,996	106		12,707	130		6,187	77
Net income (loss) from discontinued operations		(7,129)	(75)		(1,765)	(23)		-	-		(17)	1
Net income (loss) for the period		19,345	200		6,231	83		12,707	130		6,170	78
Attributable to the owners of the Company		22,577	234		7,156	96		12,804	131		6,161	78
Continuing operations		26,303	273		8,101	108		12,804	131		6,159	77
Discontinued operations		(3,726)	(39)		(945)	(12)		-	-		2	1
Attributable to the non-controlling interests		(3,232)	(34)		(925)	(13)		(97)	(1)		9	-
Net income (loss) per share attributable to shareholders		16.11	0.17		4.56	0.06		9.23	0.09		4.08	0.05
From continuing operations		18.76	0.19		5.16	0.07		9.23	0.09		4.08	0.05
From discontinued operations		(2.66)	(0.03)		(0.60)	(0.01)		-	-		0.00	0.00
Net income (loss) per ADR attributable to shareholders		402.65	4.18		113.90	1.53		230.69	2.36		101.99	1.29
From continuing operations		469.10	4.87		128.94	1.72		230.69	2.36		101.96	1.28
From discontinued operations		(66.45)	(0.70)		(15.04)	(0.19)		-	-		0.03	0.02
Average outstanding common shares		1,401.8			1,570.7			1,387.6			1,510.2
Outstanding common shares by the end of period		1,386.4			1,479.0			1,386.4			1,479.0

 

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 Q3 21 results on Thursday, November 11, 2021, at 10:00 a.m. Eastern Standard Time/12:00 p.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/Pampa3Q21VC. 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$115 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.

FAQ

What were Pampa Energía's Q3 2021 sales results?

Pampa Energía reported a 49% increase in Q3 2021 sales, totaling US$435 million.

How much did Pampa Energía's adjusted EBITDA increase in Q3 2021?

Adjusted EBITDA increased by 27% year-on-year, reaching US$262 million in Q3 2021.

What is the consolidated profit attributable to shareholders in Q3 2021 for PAM?

The consolidated profit attributable to shareholders in Q3 2021 was US$131 million, an increase of US$53 million compared to Q3 2020.

What was Pampa Energía's consolidated net debt as of September 30, 2021?

As of September 30, 2021, Pampa Energía's consolidated net debt was US$917 million.

When will Pampa Energía discuss its Q3 2021 results?

Pampa Energía will discuss its Q3 2021 results on November 11, 2021, at 10:00 a.m. Eastern Standard Time.