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

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Aug 11, 2021, 21:08 ET

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
Figures in million	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.
²It 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.

SOURCE Pampa Energia S.A.