Pampa Energía announces third quarter 2022 results

Rhea-AI Summary

Pampa Energía S.A. reported a 17% increase in Q3 2022 sales, totaling US$507 million, driven by peak natural gas seasonality and higher petrochemical prices. Operating performance improved in natural gas and oil production, with increases of 20% and 14% year-on-year, respectively.

However, Adjusted EBITDA decreased by 5% to US$246 million due to declines in power generation and holding costs. Profit attributable to shareholders rose by 35% to US$176 million, aided by rising financial securities gains.

Positive

• 17% year-on-year increase in Q3 2022 sales to US$507 million.
• 20% increase in natural gas production and 14% in oil production.
• Profit attributable to shareholders increased by 35% to US$176 million.

Negative

• 5% year-on-year decrease in Adjusted EBITDA to US$246 million.
• 17% decrease in power generation compared to Q3 2021.
• Gross margin declined by 22% to US$24.2/MWh.

BUENOS AIRES, Nov. 7, 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 nine-month period and quarter ended on September 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 September 30, 2022, except for previous periods already reported.

Main results from the quarter¹

17% year-on-year increase in sales, recording US$507 million² in the third quarter 2022 ('Q3 22'), explained by natural gas peak seasonality and higher prices in petrochemical, Energía Plus and legacy 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').

Outstanding operating performance in natural gas and oil production (+20% and +14% year-on-year, respectively).

Pampa's main operational KPIs		Q3 22	Q3 21	Variation
Power	Generation (GWh)	3,767	4,512	-17 %
	Gross margin (US$/MWh)	24.2	31.0	-22 %
Hydrocarbon	Production (k boe/day)	68.5	57.4	+19 %
	Gas over total production	92 %	92 %	+0 %
	Average gas price (US$/MBTU)	4.8	4.4	+9 %
	Average oil price (US$/bbl)	70.2	61.6	+14 %
Petrochemicals	Volume sold (k ton)	120	129	-7 %
	Average price (US$/ton)	1,496	1,118	+34 %

5% year-on-year decrease in the Adjusted EBITDA ³, recording US$246 million in Q3 22, explained by power generation (-US$36 million) and holding and others (-US$4 million), offset by oil and gas (+US$14 million), and petrochemicals (+US$12 million).

Profit attributable to the Company's shareholders of US$176 million, 35% higher than the third quarter 2021 ('Q3 21'), mainly due to operating performance plus higher gains from holding financial securities and depreciation over the passive monetary position in AR$, offset by higher income tax charge.

Net debt slightly grew to US$927 million, with a net leverage ratio of 1.3x.

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

Figures in million		As of 9.30.2022			As of 12.31.2021
		AR$	US$ FX 147,32		AR$	US$ FX 102,72
ASSETS
Property, plant and equipment		282,322	1,916		170,390	1,659
Intangible assets		11,028	75		3,956	39
Right-of-use assets		1,207	8		1,231	12
Deferred tax asset		34,719	236		8,675	84
Investments in joint ventures and associates		134,244	911		79,500	774
Financial assets at amortized cost		14,960	102		10,821	105
Financial assets at fair value through profit and loss		4,299	29		2,998	29
Other assets		79	1		61	1
Trade and other receivables		3,540	24		3,379	33
Total non-current assets		486,398	3,302		281,011	2,736
Inventories		24,802	168		15,888	155
Financial assets at amortized cost		1,899	13		537	5
Financial assets at fair value through profit and loss		84,731	575		47,026	458
Derivative financial instruments		177	1		16	0
Trade and other receivables		67,816	460		40,892	398
Cash and cash equivalents		14,259	97		11,283	110
Total current assets		193,684	1,315		115,642	1,126
Assets classified as held for sale		1,816	12		-	-
Total assets		681,898	4,629		396,653	3,861
EQUITY
Equity attributable to owners of the company		322,664	2,190		183,431	1,786
Non-controlling interest		1,217	8		609	6
Total equity		323,881	2,198		184,040	1,792
LIABILITIES
Investments in joint ventures		-	-		386	4
Provisions		21,065	143		14,444	141
Income tax and presumed minimum income tax liabilities		47,823	325		19,287	188
Deferred tax liabilities		7,636	52		-	-
Defined benefit plans		3,597	24		2,419	24
Borrowings		195,733	1,329		139,630	1,359
Trade and other payables		2,648	18		1,340	13
Total non-current liabilities		278,502	1,890		177,506	1,728
Provisions		656	4		560	5
Income tax liabilities		34	0		2,098	20
Taxes payables		5,668	38		2,314	23
Defined benefit plans		395	3		515	5
Salaries and social security payable		4,018	27		2,876	28
Derivative financial instruments		-	-		18	0
Borrowings		41,788	284		8,165	79
Trade and other payables		26,956	183		18,561	181
Total current liabilities		79,515	540		35,107	342
Total liabilities		358,017	2,430		212,613	2,070
Total liabilities and equity		681,898	4,629		396,653	3,861

 

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

		Nine-month period						Third quarter
Figures in million		2022			2021			2022			2021
		AR$	US$		AR$	US$		AR$	US$		AR$	US$
Sales revenue		168,748	1,381		103,740	1,102		69,225	507		42,529	435
Local market sales		136,862	1,114		88,575	942		58,154	426		35,135	359
Foreign market sales		31,886	267		15,165	160		11,071	81		7,394	76
Cost of sales		(104,797)	(865)		(62,652)	(666)		(43,538)	(322)		(27,309)	(280)
Gross profit		63,951	516		41,088	436		25,687	185		15,220	155
Selling expenses		(4,945)	(41)		(1,752)	(18)		(1,587)	(11)		(669)	(6)
Administrative expenses		(12,389)	(101)		(6,301)	(67)		(5,063)	(38)		(2,258)	(23)
Exploration expenses		(23)	-		(50)	-		(8)	-		(6)	-
Other operating income		10,345	79		8,864	92		5,988	43		4,018	42
Other operating expenses		(4,209)	(33)		(4,623)	(50)		(1,577)	(10)		(792)	(8)
Impairment of financial assets		(672)	(5)		(229)	(3)		(153)	(1)		(33)	(1)
Impairment of PPE, int. assets & inventories		(4,260)	(34)		(172)	(2)		124	1		-	-
Results for part. in joint businesses & associates		13,610	100		8,131	85		6,749	43		5,030	51
Operating income		61,408	481		44,956	473		30,160	212		20,510	210
Financial income		597	6		619	7		147	1		282	4
Financial costs		(18,127)	(148)		(14,128)	(151)		(9,333)	(70)		(6,287)	(65)
Other financial results		4,108	33		2,813	29		8,278	68		(118)	-
Financial results, net		(13,422)	(109)		(10,696)	(115)		(908)	(1)		(6,123)	(61)
Profit before tax		47,986	372		34,260	358		29,252	211		14,387	149
Income tax		(5,224)	(26)		(7,786)	(83)		(5,195)	(32)		(1,680)	(19)
Net income for continuing operations		42,762	346		26,474	275		24,057	179		12,707	130
Net income (loss) from discontinued operations		-	-		(7,129)	(75)		-	-		-	-
Net income (loss) for the period		42,762	346		19,345	200		24,057	179		12,707	130
Attributable to the owners of the Company		42,448	343		22,577	234		23,979	178		12,804	131
Continuing operations		42,448	343		26,303	273		23,979	178		12,804	131
Discontinued operations		-	-		(3,726)	(39)		-	-		-	-
Attributable to the non-controlling interests		314	3		(3,232)	(34)		78	1		(97)	(1)
Net income (loss) per share to shareholders		30.74	0.25		15.98	0.17		17.38	0.13		9.26	0.09
From continuing operations		30.74	0.25		18.62	0.19		17.38	0.13		9.26	0.09
From discontinued operations		-	-		(2.64)	(0.03)		-	-		-	-
Net income (loss) per ADR to shareholders		768.43	6.21		399.45	4.14		434.40	3.23		231.45	2.36
From continuing operations		768.43	6.21		465.38	4.82		434.40	3.23		231.45	2.36
From discontinued operations		-	-		(65.92)	(0.68)		-	-		-	-
Average outstanding common shares1		1,381	1,381		1,413	1,413		1,380	1,380		1,383	1,383.0
Outstanding shares by the end of period1		1,380	1,380		1,382	1,382		1,380	1,380		1,382	1,382.0

Note: 1 It includes shares from the Employee stock-based compensation plan, which as of September 30, 2022 and 2021 amounted to 3.9 million common shares.

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 22 results on Tuesday, November 8, 2022, at 10:00 a.m. Eastern Standard Time/12:00 p.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/Pampa3Q2022VC. 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 CTBSA, Transener and TGS, which at our ownership account for US$47 million. Greenwind was an affiliate until August 12, 2022, when Pampa fully owned the company and began to consolidate in FS. Under IFRS affiliates 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-third-quarter-2022-results-301670816.html

SOURCE Pampa Energia S.A.

FAQ

What were Pampa Energía's Q3 2022 sales figures?

Pampa Energía reported Q3 2022 sales of US$507 million, a 17% increase year-on-year.

How did Pampa Energía's Adjusted EBITDA perform in Q3 2022?

Pampa's Adjusted EBITDA for Q3 2022 decreased by 5% to US$246 million.

What was the profit attributable to shareholders in Q3 2022 for PAM?

The profit attributable to shareholders in Q3 2022 was US$176 million, a 35% increase compared to Q3 2021.

What were the main operational KPIs for Pampa Energía in Q3 2022?

In Q3 2022, Pampa reported a 20% increase in natural gas production and a 14% increase in oil production.

What challenges did Pampa Energía face in Q3 2022?

Pampa faced a 17% decrease in power generation and a 22% decline in gross margin in Q3 2022.