Pampa Energía Reveals First Quarter 2023 Results

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(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 KPIsQ1 23Q1 22Variation
PowerGeneration (GWh)5,7604,892+18 %
Gross margin (US$/MWh)20.828.9-28 %
Oil and gasProduction (k boe/day)57.657.5+0 %
Gas over total production91 %91 %-0 %
Average gas price (US$/MBTU)4.03.5+11 %
Average oil price (US$/bbl)67.769.0-2 %
PetrochemicalsVolume sold (k ton)10391+13 %
Average price (US$/ton)1,2191,385-12 %

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 millionAs of 03.31.2023As of 12.31.2022
AR$US$ FX 209,01AR$US$ FX 177,16
ASSETS
Property, plant and equipment478,1252,288383,4642,165
Intangible assets27,04812924,364138
Right-of-use assets1,65281,5219
Deferred tax asset9,185446,32636
Investments in joint ventures and associates195,096933159,833902
Financial assets at amortized cost21,03810118,000102
Financial assets at fair value through profit and loss5,742274,86727
Other assets1030911
Trade and other receivables5,823283,41519
Total non-current assets743,8123,559601,8813,397
Inventories40,09219230,724173
Financial assets at amortized cost3,485171,3578
Financial assets at fair value through profit and loss130,780626103,856586
Derivative financial instruments18711611
Trade and other receivables100,68348283,328470
Cash and cash equivalents26,29812618,757106
Total current assets301,5251,443238,1831,344
Total assets1,045,3375,001840,0644,742
EQUITY
Equity attributable to owners of the company509,5722,438403,4632,277
Non-controlling interest1,39771,1577
Total equity510,9692,445404,6202,284
LIABILITIES
Provisions30,90714826,062147
Income tax and presumed minimum income tax liabilities35,71917131,728179
Deferred tax liabilities23,59011319,854112
Defined benefit plans6,650324,90828
Borrowings281,3741,346237,4371,340
Trade and other payables5,813283,75721
Total non-current liabilities384,0531,837323,7461,827
Provisions90947794
Income tax liabilities50629275
Taxes payables6,026294,96628
Defined benefit plans98451,0216
Salaries and social security payable 4,502225,62732
Derivative financial instruments37123182
Borrowings67,98232548,329273
Trade and other payables69,03533049,731281
Total current liabilities150,315719111,698630
Total liabilities534,3682,557435,4442,458
Total liabilities and equity1,045,3375,001840,0644,742

Consolidated income statement

(For the quarters ended on 31 March 2023 and 2022, in millions)

First quarter
Figures in million20232022
AR$US$AR$US$
Sales revenue83,91543144,011412
Local market sales67,40934533,709316
Foreign market sales16,5068610,30296
Cost of sales(50,538)(265)(26,244)(247)
Gross profit33,37716617,767165
Selling expenses(3,193)(16)(2,063)(20)
Administrative expenses(8,310)(41)(3,529)(32)
Exploration expenses(48)(8)
Other operating income4,859161,30011
Other operating expenses(3,845)(13)(1,668)(15)
Impairment of financial assets(291)(127)(1)
Rec. of imp. (impairment) of int. assets & inventories4112(9)
Results for part. in joint businesses & associates3,200152,68225
Operating income26,16012914,345133
Financial income19302463
Financial costs(14,711)(76)(4,195)(39)
Other financial results14,64384(289)(2)
Financial results, net1258(4,238)(38)
Profit before tax26,28513710,10795
Income tax64343475
Net income for the period26,92814110,454100
Attributable to the owners of the Company26,91814110,30499
Attributable to the non-controlling interests101501
Net income per share to shareholders19.510.107.460.07
Net income per ADR to shareholders487.652.56186.401.79
Average outstanding common shares11,3801,382
Outstanding shares by the end of period11,3801,382

Note1 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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