Pampa Energía (PAMP) Q3 2022 earnings summary

Executive summary

• Q3 revenue rose 11% YoY and 10% QoQ to $621 million; adjusted EBITDA was $246 million, down 5% YoY and similar QoQ. Oil and gas led EBITDA, with gas contributing nearly half.

• Gas production and prices strengthened, while power generation EBITDA declined on mature PPAs, outages and constrained gas supply.

Financial highlights

• Revenue reached $621 million, up 11% YoY and 10% QoQ, driven by seasonal gas sales, petrochemicals, commodity and spot electricity prices, and Energía Plus.

• Adjusted EBITDA was $246 million, down 5% YoY and similar QoQ; higher payroll costs in U.S. dollar terms also weighed on results.

• CapEx rose 87% YoY and 27% QoQ, led by PEPE 3 construction and Barragán completion work.

• Free cash flow was $11 million; quarterly net cash flow was $119 million and September cash totaled $685 million.

Outlook and guidance

• E&P 2023 CapEx was indicated at ~$500 million, conditional mainly on Plan Gas bidding success and pipeline availability; no 2024 figure was given.

• Adjusted generation EBITDA is expected to recover in 2023, supported by no PPA maturities before July 2026, PEPE 3 and Barragán additions.

• The Néstor Kirchner pipeline was expected to be available by end-June 2023; first-stage capacity of 11 million m³/day is expected to offset the roughly 13 million m³/day no longer supplied by the Bahía Blanca LNG ship.

• Production growth depends on the upcoming gas tender and pipeline; 2023 drilling plans include 30–35 wells, mostly shale gas, subject to execution conditions.

• A TGS-led LNG project decision was targeted for Q1 or H1 2023; any capital contribution was still under discussion.