(Pampa Energía, 10.May.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 quarter ended on 31 March 2023.
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 31 March 2023, except for previous periods already reported.
Main results from the quarter[1]
5% year-on-year increase in sales, recording US$431mn[2] in the first quarter 2023 (‘Q1 23’), explained by better natural gas and spot energy prices, higher electricity, reforming and styrene volume sold, and the incorporation of Arauco Wind Farm (‘PEA’) and Engineer Mario Cebreiro Wind Farm (‘PEMC’), partially offset by lower gas production due to soft residential demand and bottlenecks in the main gas pipelines.
Operating performance led by thermal power dispatch and reforming:
| Pampa’s main operational KPIs | Q1 23 | Q1 22 | Variation | |
| Power | Generation (GWh) | 5,760 | 4,892 | +18 % |
| Gross margin (US$/MWh) | 20.8 | 28.9 | -28 % | |
| Oil and gas | Production (k boe/day) | 57.6 | 57.5 | +0 % |
| Gas over total production | 91 % | 91 % | -0 % | |
| Average gas price (US$/MBTU) | 4.0 | 3.5 | +11 % | |
| Average oil price (US$/bbl) | 67.7 | 69.0 | -2 % | |
| Petrochemicals | Volume sold (k ton) | 103 | 91 | +13 % |
| Average price (US$/ton) | 1,219 | 1,385 | -12 % |
8% year-on-year decrease, in the adjusted EBITDA[3], recording US$206mn in Q1 23, explained by reductions of 29% in holding and others and 11% in power generation, partially offset by increases of 16% in petrochemicals and 10% in oil and gas.
Profit attributable to the Company’s shareholders of US$141mn (+42% vs. the first quarter 2022 (‘Q1 22’) figure), mainly due to gains from holding financial securities and nominal depreciation over the passive net monetary position in AR$, partially offset by increased financial interests from the higher stock of AR$-debt.
Net debt continued decreasing, reaching US$903mn, with a net leverage ratio of 1.2x.
Consolidated balance sheet
(As of 31 March 2023 and 31 December 2022, in millions)
| Figures in million | As of 03.31.2023 | As of 12.31.2022 | ||||
| AR$ | US$ FX 209,01 | AR$ | US$ FX 177,16 | |||
| ASSETS | ||||||
| Property, plant and equipment | 478,125 | 2,288 | 383,464 | 2,165 | ||
| Intangible assets | 27,048 | 129 | 24,364 | 138 | ||
| Right-of-use assets | 1,652 | 8 | 1,521 | 9 | ||
| Deferred tax asset | 9,185 | 44 | 6,326 | 36 | ||
| Investments in joint ventures and associates | 195,096 | 933 | 159,833 | 902 | ||
| Financial assets at amortized cost | 21,038 | 101 | 18,000 | 102 | ||
| Financial assets at fair value through profit and loss | 5,742 | 27 | 4,867 | 27 | ||
| Other assets | 103 | 0 | 91 | 1 | ||
| Trade and other receivables | 5,823 | 28 | 3,415 | 19 | ||
| Total non-current assets | 743,812 | 3,559 | 601,881 | 3,397 | ||
| Inventories | 40,092 | 192 | 30,724 | 173 | ||
| Financial assets at amortized cost | 3,485 | 17 | 1,357 | 8 | ||
| Financial assets at fair value through profit and loss | 130,780 | 626 | 103,856 | 586 | ||
| Derivative financial instruments | 187 | 1 | 161 | 1 | ||
| Trade and other receivables | 100,683 | 482 | 83,328 | 470 | ||
| Cash and cash equivalents | 26,298 | 126 | 18,757 | 106 | ||
| Total current assets | 301,525 | 1,443 | 238,183 | 1,344 | ||
| Total assets | 1,045,337 | 5,001 | 840,064 | 4,742 | ||
| EQUITY | ||||||
| Equity attributable to owners of the company | 509,572 | 2,438 | 403,463 | 2,277 | ||
| Non-controlling interest | 1,397 | 7 | 1,157 | 7 | ||
| Total equity | 510,969 | 2,445 | 404,620 | 2,284 | ||
| LIABILITIES | ||||||
| Provisions | 30,907 | 148 | 26,062 | 147 | ||
| Income tax and presumed minimum income tax liabilities | 35,719 | 171 | 31,728 | 179 | ||
| Deferred tax liabilities | 23,590 | 113 | 19,854 | 112 | ||
| Defined benefit plans | 6,650 | 32 | 4,908 | 28 | ||
| Borrowings | 281,374 | 1,346 | 237,437 | 1,340 | ||
| Trade and other payables | 5,813 | 28 | 3,757 | 21 | ||
| Total non-current liabilities | 384,053 | 1,837 | 323,746 | 1,827 | ||
| Provisions | 909 | 4 | 779 | 4 | ||
| Income tax liabilities | 506 | 2 | 927 | 5 | ||
| Taxes payables | 6,026 | 29 | 4,966 | 28 | ||
| Defined benefit plans | 984 | 5 | 1,021 | 6 | ||
| Salaries and social security payable | 4,502 | 22 | 5,627 | 32 | ||
| Derivative financial instruments | 371 | 2 | 318 | 2 | ||
| Borrowings | 67,982 | 325 | 48,329 | 273 | ||
| Trade and other payables | 69,035 | 330 | 49,731 | 281 | ||
| Total current liabilities | 150,315 | 719 | 111,698 | 630 | ||
| Total liabilities | 534,368 | 2,557 | 435,444 | 2,458 | ||
| Total liabilities and equity | 1,045,337 | 5,001 | 840,064 | 4,742 |
Consolidated income statement
(For the quarters ended on 31 March 2023 and 2022, in millions)
| First quarter | ||||||
| Figures in million | 2023 | 2022 | ||||
| AR$ | US$ | AR$ | US$ | |||
| Sales revenue | 83,915 | 431 | 44,011 | 412 | ||
| Local market sales | 67,409 | 345 | 33,709 | 316 | ||
| Foreign market sales | 16,506 | 86 | 10,302 | 96 | ||
| Cost of sales | (50,538) | (265) | (26,244) | (247) | ||
| Gross profit | 33,377 | 166 | 17,767 | 165 | ||
| Selling expenses | (3,193) | (16) | (2,063) | (20) | ||
| Administrative expenses | (8,310) | (41) | (3,529) | (32) | ||
| Exploration expenses | (48) | – | (8) | – | ||
| Other operating income | 4,859 | 16 | 1,300 | 11 | ||
| Other operating expenses | (3,845) | (13) | (1,668) | (15) | ||
| Impairment of financial assets | (291) | – | (127) | (1) | ||
| Rec. of imp. (impairment) of int. assets & inventories | 411 | 2 | (9) | – | ||
| Results for part. in joint businesses & associates | 3,200 | 15 | 2,682 | 25 | ||
| Operating income | 26,160 | 129 | 14,345 | 133 | ||
| Financial income | 193 | 0 | 246 | 3 | ||
| Financial costs | (14,711) | (76) | (4,195) | (39) | ||
| Other financial results | 14,643 | 84 | (289) | (2) | ||
| Financial results, net | 125 | 8 | (4,238) | (38) | ||
| Profit before tax | 26,285 | 137 | 10,107 | 95 | ||
| Income tax | 643 | 4 | 347 | 5 | ||
| Net income for the period | 26,928 | 141 | 10,454 | 100 | ||
| Attributable to the owners of the Company | 26,918 | 141 | 10,304 | 99 | ||
| Attributable to the non-controlling interests | 10 | – | 150 | 1 | ||
| Net income per share to shareholders | 19.51 | 0.10 | 7.46 | 0.07 | ||
| Net income per ADR to shareholders | 487.65 | 2.56 | 186.40 | 1.79 | ||
| Average outstanding common shares1 | 1,380 | 1,382 | ||||
| Outstanding shares by the end of period1 | 1,380 | 1,382 |
Note: 1 It nets shares from the Employee stock-based compensation plan, which as of 31 March 2023 and 2022 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 Q1 23 results on Thursday, 11 May 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/Pampa1Q2023VC. The videoconference call will also be simultaneously webcasted at Pampa’s website ri.pampaenergia.com/en.
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