Pampa Energía (PAMP) Q3 2024 earnings summary

Executive summary

• Q3 2024 saw sales rise 14% year-on-year to US$540 million, driven by higher gas production, improved power generation, and increased petrochemical volumes, despite lower gas sales to industries and Chile.

• Gas production reached 13.9 million m³/day, up 8% year-on-year, with shale contributing 56% compared to 43% in Q3 2023.

• Power generation delivered 6 TWh, a 19% year-on-year increase, with strong contributions from all CCGTs.

• Adjusted EBITDA increased 14% to US$279 million, mainly from Plan Gas deliveries, power generation, and stakes in Transener and TGS, offset by petrochemicals and higher costs.

• Net debt decreased by US$150 million from June 2024 to US$539 million, the lowest in 8 years, with a net debt-to-EBITDA ratio of 0.8x.

Financial highlights

• Consolidated adjusted EBITDA reached $279 million, up 14% year-on-year, with power generation and oil & gas segments contributing 42% and 41% respectively.

• Power generation sales up 12% year-on-year to US$183 million; adjusted EBITDA up 23% to US$112 million.

• Oil & gas sales up 10% to US$228 million; adjusted EBITDA down 8% to US$122 million, with production at 87.5 kboe/day (+9%).

• Capex in Q3 was 59% lower year-on-year, mainly due to shale gas ramp-up and wind farm construction timing, totaling $98 million.

• Free cash flow in Q3 was $80 million, supported by improved working capital and collections.

Outlook and guidance

• PEPE 6 wind farm to be fully online by November 2024, raising total wind capacity to 140 MW and total installed wind power to 427 MW.

• Rincón de Aranda oil project targets doubling production, with $700 million capex planned for 2025 and $1.5 billion through 2027.

• Gas production forecasted to average 13.1–13.2 million m³/day in 2025, with peaks up to 14.5 million m³/day.

• TGS's Tratayén plant to expand capacity to 28 million m³/day by end-2024, supporting future gas production growth.

• Urea project decision expected in the second half of next year after EPC bids.