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Pampa Energía announces solid second quarter 2021 results coupled with record high gas production

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BUENOS AIRES, Aug. 11, 2021 /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 six-month period and quarter ended on June 30, 2021.

Pampa's financial information adopts US$ as functional currency, and it's expressed in AR$ at the transactional nominal exchange rate ('FX'). However, Transener, TGS and Refinor, from our holding and others segment, report under local currency. Hence, their figures are adjusted by inflation as of June 30, 2021, except for previous periods already reported.

Main results from the quarter1

68% year-on-year increase in sales, recording US$346 million2 in the second quarter 2021 ('Q2 21'), explained by higher price and volume of hydrocarbons and petrochemicals sold, the new combined cycle gas turbine at Genelba Thermal Power Plant ('CTGEBA'), and the retroactive rise as of February 2021 on spot energy remuneration, partially offset by real devaluation affecting spot revenues.


Q2 21

Q2 20

Variation

Power

Generation (GWh)

3,808

3,461

+10%


Gross margin (US$/MWh)

35.0

36.6

-4%






Hydrocarbon

Production (k boe/day)

47.7

43.7

+9%


Gas over total production

90%

91%

-1%


Average gas price (US$/MBTU)

3.9

2.0

+99%


Average oil price (US$/bbl)

57.7

20.8

+177%






Petrochemicals

Volume sold (k ton)

76

52

+46%


Average price (US$/ton)

1,285

741

+73%






79% year-on-year increase in the adjusted EBITDA3, recording US$241 million during Q2 21, explained by rises of US$67 million in oil and gas, US$25 million in power generation, US$12 million in petrochemicals, and US$2 million in holding and others.

Pampa recorded a consolidated profit attributable to the Company's shareholders of US$70 million, US$66 million higher than the second quarter 2020 ('Q2 20'), mainly due to better operating margin, offset by higher losses from discontinued operations and income tax charge in Q2 21.

Net debt decreased to US$1,042 million as of June 30, 2021, showing a continuous reduction compared to the US$1,148 million recorded by the end of 2020.

Consolidated balance sheet
(As of June 30, 2021 and December 31, 2020, in millions)

Figures in million


As of 6.30.2021


As of 12.31.2020


AR$

US$ FX 95.72


AR$

US$ FX 84.15

ASSETS







Property, plant and equipment


153,639

1,605


135,445

1,610

Intangible assets


4,075

43


3,455

41

Right-of-use assets


1,595

17


867

10

Deferred tax assets


7,146

75


9,082

108

Investments in joint ventures and associates


61,544

643


46,229

549

Financial assets at amortized cost


9,598

100


8,428

100

Financial assets at fair value through profit and loss


3,811

40


942

11

Other assets


61

1


57

1

Trade and other receivables


3,249

34


3,631

43

Total non-current assets


244,718

2,557


208,136

2,473

Inventories


14,894

156


9,766

116

Financial assets at amortized cost


-

-


2,062

25

Financial assets at fair value through profit and loss


32,324

338


27,382

325

Derivative financial instruments


1

0


1

-

Trade and other receivables


45,275

473


28,678

341

Cash and cash equivalents


11,946

125


11,900

141

Total current assets


104,440

1,091


79,789

948

Assets classified as held for sale


-

-


123,603

1,469

Total assets


349,158

3,648


411,528

4,890








EQUITY







Equity attributable to owners of the company


149,939

1,566


120,247

1,428

Non-controlling interest


743

8


28,631

341

Total equity


150,682

1,574


148,878

1,769








LIABILITIES







Investments in joint ventures and associates


416

4


161

2

Provisions


13,428

140


9,326

111

Income tax liabilities


15,750

165


11,004

131

Taxes payables


138

1


128

2

Deferred tax liabilities


-

-


93

1

Defined benefit plans


1,944

20


1,460

17

Borrowings


130,932

1,368


115,428

1,372

Other payables


1,593

17


1,418

16

Total non-current liabilities


164,201

1,715


139,018

1,652

Provisions


363

4


1,379

16

Income tax liabilities


49

1


897

11

Taxes payables


4,295

45


3,030

36

Defined benefit plans


298

3


298

4

Salaries and social security payable


1,372

14


1,935

23

Derivative financial instruments


27

0


40

-

Borrowings


13,094

137


20,377

242

Trade and other payables


14,777

154


9,778

116

Total current liabilities


34,275

358


37,734

448

Liabilities associated to assets classified as held for sale


-

-


85,898

1,021

Total liabilities


198,476

2,074


262,650

3,121








Total liabilities and equity


349,158

3,648


411,528

4,890

Consolidated income statement
(For the six-month periods and quarters ended on June 30, 2021 and 2020, in millions)



First half


Second quarter

Figures in million


2021


2020


2021


2020



AR$

US$


AR$

US$


AR$

US$


AR$

US$

Sales revenue


61,211

667


32,154

496


32,576

346


14,118

206

Cost of sales


(35,343)

(386)


(20,309)

(318)


(18,990)

(201)


(9,148)

(136)














Gross profit


25,868

281


11,845

178


13,586

145


4,970

70














Selling expenses


(1,083)

(12)


(1,000)

(16)


(541)

(5)


(401)

(6)

Administrative expenses


(4,043)

(44)


(3,174)

(49)


(2,027)

(21)


(1,638)

(24)

Exploration expenses


(44)

-


(9)

-


(37)

-


(5)

-

Other operating income


4,846

50


1,261

20


3,870

39


552

9

Other operating expenses


(3,831)

(42)


(1,276)

(19)


(781)

(9)


(818)

(11)

Impairment of financial assets


(196)

(2)


12

-


(93)

(1)


81

1

Impairment of PPE, intangible assets and inventories


(172)

(2)


(4,316)

(67)


(172)

(2)


-

-

Results for part. in joint businesses and associates


3,101

34


3,158

46


875

8


1,089

14














Operating income


24,446

263


6,501

93


14,680

154


3,830

53














Financial income


337

3


295

4


172

1


153

1

Financial costs


(7,841)

(86)


(5,348)

(82)


(3,855)

(41)


(2,705)

(39)

Other financial results


2,931

29


1,760

28


4,992

53


2,169

32

Financial results, net


(4,573)

(54)


(3,293)

(50)


1,309

13


(383)

(6)














Profit before tax


19,873

209


3,208

43


15,989

167


3,447

47














Income tax


(6,106)

(64)


(1,399)

(14)


(5,391)

(56)


(1,838)

(22)














Net income for continuing operations


13,767

145


1,809

29


10,598

111


1,609

25














Net income (loss) from discontinued operations


(7,129)

(75)


(1,748)

(24)


(7,654)

(80)


(2,491)

(36)














Net income (loss) for the period


6,638

70


61

5


2,944

31


(882)

(11)

Attributable to the owners of the Company


9,773

103


995

18


6,621

70


220

4

Continuing operations


13,499

142


1,942

31


10,349

108


1,582

24

Discontinued operations


(3,726)

(39)


(947)

(13)


(3,728)

(38)


(1,362)

(20)

Attributable to the non-controlling interests


(3,135)

(33)


(934)

(13)


(3,677)

(39)


(1,102)

(15)














Net income (loss) per share attributable to shareholders


6.94

0.07


0.62

0.01


4.75

0.05


0.14

0.003

From continuing operations


9.58

0.10


1.21

0.02


7.43

0.08


1.01

0.02

From discontinued operations


(2.64)

(0.03)


(0.59)

(0.01)


(2.68)

(0.03)


(0.87)

(0.01)














Net income (loss) per ADR attributable to shareholders


173.40

1.83


15.54

0.28


118.84

1.26


3.50

0.07

From continuing operations


239.51

2.52


30.32

0.49


185.75

1.94


25.19

0.38

From discontinued operations


(66.11)

(0.69)


(14.79)

(0.20)


(66.91)

(0.68)


(21.69)

(0.32)














Average outstanding common shares


1,409.0



1,601.3



1,392.9



1,570.2


Outstanding common shares by the end of period


1,388.8



1,557.1



1,388.8



1,557.1


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 Q2 21 results on Friday, August 13, 2021, at 10:00 a.m. Eastern Standard Time/11:00 a.m. Buenos Aires Time. The hosts will be Gustavo Mariani, CEO; Gabriel Cohen, CFO and Lida Wang, investor relations and sustainability officer at Pampa.

For those interested in participating, please register at bit.ly/Pampa2Q21VideoCall. The videoconference call will also be simultaneously webcasted at Pampa's website ri.pampaenergia.com/en.

For further information about Pampa:

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 Greenwind, OldelVal, Refinor, CTBSA, Transener and TGS, which at our ownership account for US$110 million. Under IFRS they 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.

Cision
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SOURCE Pampa Energia S.A.