Pampa Energía S.A. Pampa Energía announces six-month period and second quarter 2023 results
Ciudad Autónoma de Buenos Aires, 08/09/2023 / 19:01, EST/EDT – EQS Newswire – 1/3 Pampa Energía S.A. (NYSE)
BUENOS AIRES, ARGENTINA / ACCESSWIRE / August 9, 2023 / 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, 2023.
Pampa’s financial information adopts US$ as functional currency, which is then translated into AR$ at transactional nominal exchange rate (‘FX’). However, for our affiliates, Transener and TGS, their figures are adjusted for inflation as of June 30, 2023, and then translated into US$ at the period’s closing FX. The reported figures in US$ from previous periods remain unchanged.
Second quarter 2023 (‘Q2 23′) main results[1]
Sales amounted to US $464 million[2], similar to the second quarter 2022 (‘Q2 22′), explained by improved natural gas prices and sold volumes, the incorporation of Engineer Mario Cebreiro Wind Farm (‘PEMC’) and Arauco Wind Farm[3] (‘PEA’) and higher sales of reforming volumes, offset by lower petrochemical and crude oil prices and lesser legacy energy income.
Operating performance highlighted by reforming and Ensenada Barragán Thermal Power Plant (‘CTEB’)’s Combined Cycle (‘CCGT’):
Pampa’s main operational KPIs
Q2 23
Q2 22
Variation
Power
Generation (GWh)
5,218
4,477
+17%
Gross margin (US$/MWh)
22.6
22.1
+2%
Oil and gas
Production (k boe/day)
67.3
64.6
+4%
Gas over total production
92%
92%
+0%
Average gas price (US$/MBTU)
4.7
4.4
+7%
Average oil price (US$/bbl)
65.1
72.6
-10%
Petrochemicals
Volume sold (k ton)
106
91
+17%
Average price (US$/ton)
1,240
1,738
-29%
Adjusted EBITDA[4] reached US $222 million, 13% lower than Q2 22, explained by reductions of 53% in holding and others, 48% in petrochemicals, 4% in oil and gas, and 1% in power generation.
The profit attributable to the Company’s shareholders rose 156%, reaching US$166 million, mainly due to gains from holding financial securities and, to a lesser extent, depreciation over the monetary liability net position in AR$, partially offset by increased financial interests due to higher stock of AR$-debt and higher income tax charges.
Net debt continued decreasing, reaching US $787 million, resulting in a net leverage ratio of 1.1x.
[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$97 million. Under IFRS affiliates are not consolidated in Pampa, thus shown as ‘Results for participation in joint businesses and associates’.
[3] PEMC is consolidated since Pampa holds full ownership on August 2022; in process of divestment. PEA was acquired on December 2022.
[4] Consolidated adjusted EBITDA represents the results before financial results, income tax, depreciations and amortizations, extraordinary and non-cash income and expense, equity income and other adjustments from the IFRS implementation, and includes affiliates’ EBITDA at our ownership. For further information, see section 3.1 of the Earnings Release.
Consolidated balance sheet
(As of June 30, 2023 and December 31, 2022, in millions)
Figures in million
As of 06.30.2023
As of 12.31.2022
AR$
US$ FX 256.7
AR$
US$ FX 177.16
ASSETS
Property, plant and equipment
585,004
2,279
383,464
2,165
Intangible assets
25,252
98
24,364
138
Right-of-use assets
1,982
8
1,521
9
Deferred tax asset
8,491
33
6,326
36
Investments in joint ventures and associates
240,004
935
159,833
902
Financial assets at amortized cost
25,853
101
18,000
102
Financial assets at fair value through profit and loss
7,053
27
4,867
27
Other assets
121
0
91
1
Trade and other receivables
6,660
26
3,415
19
Total non-current assets
900,420
3,508
601,881
3,397
Inventories
47,714
186
30,724
173
Financial assets at amortized cost
3,006
12
1,357
8
Financial assets at fair value through profit and loss
169,968
662
103,856
586
Derivative financial instruments
146
1
161
1
Trade and other receivables
116,646
454
83,328
470
Cash and cash equivalents
50,749
198
18,757
106
Total current assets
388,229
1,512
238,183
1,344
Assets classified as held for sale
46,631
182
–
–
Total assets
1,335,280
5,202
840,064
4,742
EQUITY
Equity attributable to owners of the company
669,365
2,608
403,463
2,277
Non-controlling interest
1,684
7
1,157
7
Total equity
671,049
2,614
404,620
2,284
LIABILITIES
Provisions
38,250
149
26,062
147
Income tax and presumed minimum income tax liabilities
37,356
146
31,728
179
Deferred tax liabilities
17,596
69
19,854
112
Defined benefit plans
8,362
33
4,908
28
Borrowings
333,830
1,300
237,437
1,340
Trade and other payables
8,485
33
3,757
21
Total non-current liabilities
443,879
1,729
323,746
1,827
Provisions
1,003
4
779
4
Income tax liabilities
4,493
18
927
5
Taxes payables
7,398
29
4,966
28
Defined benefit plans
928
4
1,021
6
Salaries and social security payable
5,404
21
5,627
32
Derivative financial instruments
133
1
318
2
Borrowings
91,688
357
48,329
273
Trade and other payables
74,368
290
49,731
281
Total current liabilities
185,415
722
111,698
630
Liabilities associated to assets classified as held for sale
34,937
136
–
–
Total liabilities
664,231
2,588
435,444
2,458
Total liabilities and equity
1,335,280
5,202
840,064
4,742
Consolidated income statement
(For the six-month periods and quarters ended on June 30, 2023 and 2022, in millions)
First half
Second quarter
Figures in million
2023
2022
2023
2022
AR$
US$
AR$
US$
AR$
US$
AR$
US$
Sales revenue
194,256
895
99,523
874
110,341
464
55,512
462
Local market sales
154,309
708
78,708
688
86,900
363
44,999
372
Foreign market sales
39,947
187
20,815
186
23,441
101
10,513
90
Cost of sales
(117,939)
(555)
(60,896)
(540)
(67,401)
(290)
(34,652)
(294)
Gross profit
76,317
340
38,627
334
42,940
174
20,860
168
Selling expenses
(7,723)
(34)
(3,721)
(33)
(4,530)
(18)
(1,658)
(12)
Administrative expenses
(19,564)
(89)
(7,326)
(63)
(11,254)
(48)
(3,797)
(31)
Exploration expenses
(1,750)
(7)
(15)
–
(1,702)
(7)
(7)
–
Other operating income
14,289
61
4,357
36
9,430
45
3,057
25
Other operating expenses
(7,375)
(35)
(2,632)
(23)
(3,530)
(22)
(964)
(8)
Impairment of financial assets
(937)
(3)
(519)
(4)
(646)
(3)
(392)
(3)
Rec. of imp. (impairm.) of int. assets & inventories
(323)
(1)
(4,384)
(35)
(734)
(3)
(4,375)
(35)
Results for part. in joint businesses & associates
8,570
34
6,861
57
5,370
19
4,179
32
Operating income
61,504
266
31,248
269
35,344
137
16,903
136
Financial income
428
2
450
5
235
2
204
2
Financial costs
(41,078)
(188)
(8,794)
(78)
(26,367)
(112)
(4,599)
(39)
Other financial results
55,461
254
(4,170)
(35)
40,818
170
(3,881)
(33)
Financial results, net
14,811
68
(12,514)
(108)
14,686
60
(8,276)
(70)
Profit before tax
76,315
334
18,734
161
50,030
197
8,627
66
Income tax
(7,087)
(29)
(29)
6
(7,730)
(33)
(376)
1
Net income for the period
69,228
305
18,705
167
42,300
164
8,251
67
Attributable to the owners of the Company
69,097
305
18,469
165
42,179
164
8,165
66
Attributable to the non-controlling interests
131
–
236
2
121
0.1
86
1
Net income per share to shareholders
50.36
0.22
13.37
0.12
31.01
0.12
5.92
0.05
Net income per ADR to shareholders
1,259.06
5.56
334.34
2.99
775.35
3.01
147.92
1.20
Average outstanding common shares1
1,372
1,372
1,381
1,381
1,360
1,360
1,380
1,380.0
Outstanding shares by the end of period1
1,360
1,360
1,380
1,380
1,360
1,360
1,380
1,380.0
Note: 1 It considers the shares from the Employee stock-based compensation plan, which as of June 30, 2022 and 2023 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 video conference to discuss Pampa’s Q2 23 results on Thursday, August 10, 2023, 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/Pampa2Q2023VC. The video conference call will also be simultaneously webcasted at Pampa’s website ri.pampaenergia.com/en.
