BUENOS AIRES, ARGENTINA / ACCESSWIRE / November 8, 2023 / Pampa EnergÃa 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, 2023.
Pampa's financial information adopts US$ as functional currency, converted into AR$ at transactional nominal exchange rate (‘FX'). However, for our affiliates, Transener and TGS, their figures are adjusted for inflation as of September 30, 2023, and then translated into US$ at the period's closing FX. The reported figures in US$ from previous periods remain unchanged.
Third quarter 2023 (‘Q3 23') main results[1]
7% year-on-year sales decrease, recording US$474 million[2] in Q3 23, explained by a drop in prices and sales of petrochemicals and oil, and the impact of the AR$ devaluation in legacy energy, offset by higher gas sales.
Operating performance highlighted by natural gas and Ensenada Barragán Thermal Power Plant (‘CTEB')'s Combined Cycle (‘CCGT'):
Pampa's main operational KPIs | Q3 23 | Q3 22 | Variation | |||||||
Power | Generation (GWh) | 4,985 | 3,767 | +32 | % | |||||
Gross margin (US$/MWh) | 23.1 | 24.2 | -5 | % | ||||||
Oil and gas | Production (k boe/day) | 80.4 | 68.5 | +17 | % | |||||
Gas over total production | 94 | % | 92 | % | +2 | % | ||||
Average gas price (US$/MBTU) | 4.7 | 4.8 | -3 | % | ||||||
Average oil price (US$/bbl) | 63.1 | 70.2 | -10 | % | ||||||
Petrochemicals | Volume sold (k ton) | 102 | 120 | -14 | % | |||||
Average price (US$/ton) | 1,283 | 1,496 | -14 | % | ||||||
Adjusted EBITDA[3] reached US$244 million, similar to Q3 22, explained by reductions of 72% in holding and others, 16% in petrochemicals, offset by increases of 12% in oil and gas, and 2% in power generation.
The profit attributable to the Company's shareholders decreased by 15%, reaching US$152 million, mainly explained by increased financial interests of AR$-debt and higher income tax charges, partially offset by gains from holding financial securities.
Net debt continued decreasing to US$677 million, resulting in a net leverage ratio of 1.0x.
[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 is US$90 million. Under IFRS, affiliates are not consolidated in Pampa, shown as ‘Results for participation in joint businesses and associates'.
[3] Consolidated adjusted EBITDA represents the results before financial results, income tax, depreciations and amortizations, extraordinary and non-cash income and expense, equity income and other adjustments, and includes affiliates' EBITDA at our ownership. For further information, see section 3.1 of the Earnings Release.
Consolidated balance sheet
(As of September 30, 2023 and December 31, 2022, in millions)
| As of 09.30.2023 | As of 12.31.2022 | |||||||||||||||
Figures in million | AR$ | $ | US FX 349.95 | AR$ | $ | US FX 177.16 | ||||||||||
ASSETS | ||||||||||||||||
Property, plant and equipment | 846,115 | 2,418 | 383,464 | 2,165 | ||||||||||||
Intangible assets | 34,072 | 97 | 24,364 | 138 | ||||||||||||
Right-of-use assets | 3,043 | 9 | 1,521 | 9 | ||||||||||||
Deferred tax asset | 1,616 | 5 | 6,326 | 36 | ||||||||||||
Investments in joint ventures and associates | 325,458 | 930 | 159,833 | 902 | ||||||||||||
Financial assets at amortized cost | 14,128 | 40 | 18,000 | 102 | ||||||||||||
Financial assets at fair value through profit and loss | 9,615 | 27 | 4,867 | 27 | ||||||||||||
Other assets | 158 | 0 | 91 | 1 | ||||||||||||
Trade and other receivables | 9,358 | 27 | 3,415 | 19 | ||||||||||||
Total non-current assets | 1,243,563 | 3,554 | 601,881 | 3,397 | ||||||||||||
Inventories | 73,942 | 211 | 30,724 | 173 | ||||||||||||
Financial assets at amortized cost | 24,289 | 69 | 1,357 | 8 | ||||||||||||
Financial assets at fair value through profit and loss | 248,926 | 711 | 103,856 | 586 | ||||||||||||
Derivative financial instruments | 289 | 1 | 161 | 1 | ||||||||||||
Trade and other receivables | 158,061 | 452 | 83,328 | 470 | ||||||||||||
Cash and cash equivalents | 64,117 | 183 | 18,757 | 106 | ||||||||||||
Total current assets | 569,624 | 1,628 | 238,183 | 1,344 | ||||||||||||
Total assets | 1,813,187 | 5,181 | 840,064 | 4,742 | ||||||||||||
Equity attributable to owners of the company | 963,757 | 2,754 | 403,463 | 2,277 | ||||||||||||
Non-controlling interest | 2,398 | 7 | 1,157 | 7 | ||||||||||||
Total equity | 966,155 | 2,761 | 404,620 | 2,284 | ||||||||||||
LIABILITIES | ||||||||||||||||
Provisions | 54,194 | 155 | 26,062 | 147 | ||||||||||||
Income tax and presumed minimum income tax liabilities | 40,593 | 116 | 31,728 | 179 | ||||||||||||
Deferred tax liabilities | 19,821 | 57 | 19,854 | 112 | ||||||||||||
Defined benefit plans | 10,060 | 29 | 4,908 | 28 | ||||||||||||
Borrowings | 451,083 | 1,289 | 237,437 | 1,340 | ||||||||||||
Trade and other payables | 13,231 | 38 | 3,757 | 21 | ||||||||||||
Total non-current liabilities | 588,982 | 1,683 | 323,746 | 1,827 | ||||||||||||
Provisions | 1,205 | 3 | 779 | 4 | ||||||||||||
Income tax liabilities | 12,392 | 35 | 927 | 5 | ||||||||||||
Taxes payables | 11,762 | 34 | 4,966 | 28 | ||||||||||||
Defined benefit plans | 915 | 3 | 1,021 | 6 | ||||||||||||
Salaries and social security payable | 9,433 | 27 | 5,627 | 32 | ||||||||||||
Derivative financial instruments | 2 | 0 | 318 | 2 | ||||||||||||
Borrowings | 123,132 | 352 | 48,329 | 273 | ||||||||||||
Trade and other payables | 99,209 | 283 | 49,731 | 281 | ||||||||||||
Total current liabilities | 258,050 | 737 | 111,698 | 630 | ||||||||||||
Total liabilities | 847,032 | 2,420 | 435,444 | 2,458 | ||||||||||||
Total liabilities and equity | 1,813,187 | 5,181 | 840,064 | 4,742 | ||||||||||||
Consolidated income statement
(For the nine-month periods and quarters ended on September 30, 2023 and 2022, in millions)
| Nine-month period | Third quarter | ||||||||||||||||||||||
Figures in million | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
| AR$ | US$ | AR$ | US$ | AR$ | US$ | AR$ | US$ | ||||||||||||||||
Sales revenue | 346,957 | 1,370 | 168,748 | 1,381 | 152,701 | 474 | 69,225 | 507 | |||||||||||||||
Domestic sales | 285,892 | 1,117 | 136,862 | 1,114 | 131,583 | 408 | 58,154 | 426 | |||||||||||||||
Foreign market sales | 61,065 | 253 | 31,886 | 267 | 21,118 | 66 | 11,071 | 81 | |||||||||||||||
Cost of sales | (209,953) | (850) | (104,023) | (859) | (92,014) | (294) | (43,127) | (319) | |||||||||||||||
Gross profit | 137,004 | 520 | 64,725 | 522 | 60,687 | 180 | 26,098 | 188 | |||||||||||||||
Selling expenses | (13,333) | (51) | (5,719) | (47) | (5,610) | (17) | (1,998) | (14) | |||||||||||||||
Administrative expenses | (33,554) | (133) | (12,389) | (101) | (13,990) | (44) | (5,063) | (38) | |||||||||||||||
Exploration expenses | (1,772) | (7) | (23) | - | (22) | - | (8) | - | |||||||||||||||
Other operating income | 31,627 | 115 | 10,345 | 79 | 17,338 | 54 | 5,988 | 43 | |||||||||||||||
Other operating expenses | (18,079) | (68) | (4,209) | (33) | (10,704) | (33) | (1,577) | (10) | |||||||||||||||
Impairment of financial assets | (1,490) | (4) | (672) | (5) | (553) | (1) | (153) | (1) | |||||||||||||||
Rec. of imp. (impairm.) of int. assets & inventories | (324) | (1) | (4,260) | (34) | (1) | - | 124 | 1 | |||||||||||||||
Results for part. in joint businesses & associates | 14,044 | 42 | 13,610 | 100 | 5,474 | 8 | 6,749 | 43 | |||||||||||||||
Income from the sale of associates | 486 | 1 | - | - | 486 | 1 | - | - | |||||||||||||||
Operating income | 114,609 | 414 | 61,408 | 481 | 53,105 | 148 | 30,160 | 212 | |||||||||||||||
Financial income | 1,090 | 4 | 597 | 6 | 662 | 2 | 147 | 1 | |||||||||||||||
Financial costs | (71,096) | (283) | (18,127) | (148) | (30,018) | (95) | (9,333) | (70) | |||||||||||||||
Other financial results | 95,794 | 392 | 4,108 | 33 | 40,333 | 138 | 8,278 | 68 | |||||||||||||||
Financial results, net | 25,788 | 113 | (13,422) | (109) | 10,977 | 45 | (908) | (1) | |||||||||||||||
Profit before tax | 140,397 | 527 | 47,986 | 372 | 64,082 | 193 | 29,252 | 211 | |||||||||||||||
Income tax | (20,437) | (69) | (5,224) | (26) | (13,350) | (40) | (5,195) | (32) | |||||||||||||||
Net income for the period | 119,960 | 458 | 42,762 | 346 | 50,732 | 153 | 24,057 | 179 | |||||||||||||||
Attributable to the owners of the Company | 119,708 | 457 | 42,448 | 343 | 50,611 | 152 | 23,979 | 178 | |||||||||||||||
Attributable to the non-controlling interests | 252 | 1 | 314 | 3 | 121 | 0.9 | 78 | 1 | |||||||||||||||
Net income per share to shareholders | 87.51 | 0.33 | 30.74 | 0.25 | 37.21 | 0.11 | 17.38 | 0.13 | |||||||||||||||
Net income per ADR to shareholders | 2,187.65 | 8.35 | 768.43 | 6.21 | 930.35 | 2.80 | 434.40 | 3.23 | |||||||||||||||
Average outstanding common shares1 | 1,368 | 1,381 | 1,360 | 1,380 | |||||||||||||||||||
Outstanding shares by the end of period1 | 1,360 | 1,380 | 1,360 | 1,380 | |||||||||||||||||||
Note: 1 It considers the Employee stock-based compensation plan shares, which amounted to 3.9 million common shares as of September 30, 2022 and 2023.
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 23 results on Thursday, November 9, 2023, at 10:00 a.m. Eastern Standard Time/12:00 p.m. Buenos Aires Time. The hosts will be Nicolás Mindlin, CFO, Horacio Turri, Head of E&P and Lida Wang, investor relations and sustainability officer at Pampa.
For those interested in participating, please register at bit.ly/Pampa3Q2023VC.
For further information about Pampa:
SOURCE: 1/3 Pampa EnergÃa S.A.