Pampa Energía (PAMP) Q1 2023 earnings summary

Executive summary

• Q1 adjusted EBITDA was $206 million, down 8% YoY but up 12% QoQ; 76% was dollar-linked, with power slightly ahead of oil and gas in EBITDA mix.

• YoY pressure from Barragán's old PPA, TGS tariff lag and higher dollar payroll was offset by new PPAs, solid dispatch, better gas and spot prices, and Transener's tariff increase.

Financial highlights

• Power generation EBITDA was $108 million, down 11% YoY and up 26% QoQ; E&P adjusted EBITDA was $62 million, up 10% YoY and down 14% QoQ.

• Petrochemical EBITDA was $7 million; sales volume rose 13% YoY, with 39% of sales exported, while EBITDA fell by more than half QoQ.

• CapEx more than doubled YoY, mainly for the PEPE 6 wind farm and shale drilling and completion ahead of winter.

• Free cash flow was an outflow of $29 million; net cash flow was $68 million and period-end cash was $768 million.

Outlook and guidance

• Néstor Kirchner pipeline commissioning was expected by end-June or early July, enabling 4.8 million cubic meters/day of additional Plan Gas deliveries and production of 15.6 million cubic meters/day.

• Gas demand was expected to rise from 9 million cubic meters/day toward 11 million the following week and stabilize near 12 million; production was forecast to increase with pipeline commissioning.

• PEPE 4 had 54 MW of 81 MW online in April, with completion targeted by month-end; PEPE 6's 140 MW buildout was expected to reach COD in Q3 and Q4 2024.

• 2023 investment priorities were gas production and renewable capacity; participation in a thermal plant tender would depend on competitive pricing.