Pampa Energía (PAMP) Q1 2022 earnings summary

Executive summary

• Revenue rose 32% YoY to $555M; Adjusted EBITDA increased 11% YoY to $226M, supported by gas exports, commodity prices, updated legacy prices and Energía Plus.

• Gas drove a more balanced business mix; 81% of sales were dollar-linked, while higher expenses, intensive E&P activity and weaker petrochemical margins partly offset growth.

Financial highlights

• Adjusted EBITDA was $226M, up 11% YoY and 13% QoQ; seasonality boosted the QoQ result.

• Free cash flow was near breakeven amid higher CapEx and the Loma de la Lata PPA expiry; net cash generated was $34M and quarter-end cash was $607M.

• Restricted-group CapEx was $74M vs. $31M in Q1 2021; consolidated CapEx nearly doubled YoY and fell 30% QoQ.

Outlook and guidance

• Gas output was close to 11 million m³/day; management said production could grow 40%–50% by next winter and potentially double within two years, subject to Plan Gas awards.

• El Mangrullo treatment capacity is expected to reach 13.5 million m³/day by end of winter; existing facilities across operating areas support roughly 16–17 million m³/day.

• Néstor Kirchner pipeline could add 11 million m³/day by next winter if construction awards proceed on schedule; compression could raise added capacity to 20–22 million m³/day in winter 2024.

• Ensenada Barragán combined-cycle conversion COD shifted to Q4 2022; PEPE III expansion COD is staged at 50 MW in Feb. 2023 and 31 MW by May 2023.

• Pro forma full-year combined-cycle EBITDA was estimated at $130M after the PPA expiry and new PPA ramp-up, versus $160M before expiry.