Pampa Energía (PAMP) Q2 2024 earnings summary

Executive summary

• Achieved record gas production in Q2 2024, up 37% year-on-year, with a new daily high of 16.8 million cubic meters per day, driven by shale gas, which now accounts for 48% of total output, up from 23% last year.

• Adjusted EBITDA rose 30% year-on-year to $288 million, mainly from oil and gas, holding, and power generation segments, with a 45% EBITDA margin.

• CapEx was 28% lower year-on-year, reflecting the completion of major projects in 2023 and ongoing investments in new wind and shale oil projects.

• Net profit attributable to shareholders fell 39% to $100 million due to lower financial gains, FX differences, asset impairment, and a haircut on overdue CAMMESA interests.

• Significant progress in green energy, with PEPE VI wind project 94% complete and full commercial operation expected by October 2024.

Financial highlights

• Q2 2024 sales reached $500 million, up 8% year-on-year; adjusted EBITDA was $288 million, up 30% year-on-year and 54% sequentially.

• Power generation segment posted $106 million adjusted EBITDA, up 9% year-on-year, with 98% availability.

• E&P business delivered $121 million adjusted EBITDA, up 24% year-on-year, with total production up 35%.

• Petrochemical EBITDA grew 50% year-on-year to $15 million, driven by higher exports and improved margins.

• Free cash flow was $60 million in Q2, with net cash increasing by $69 million to $914 million.

Outlook and guidance

• No immediate plans to tap international markets due to strong cash position and no major maturities until 2027.

• Focus remains on organic growth in core gas and oil fields, with ongoing evaluation of M&A opportunities.

• Rincón de Aranda oil production expected to reach 10,000–12,000 barrels/day by 2025 and 45,000–48,000 barrels/day by 2027, supported by midstream expansions.

• PEPE VI wind farm expected to reach full commercial operation in October 2024, with a total investment of $256 million and capacity of 140 MW.

• Spot energy remuneration increased 25% from June 2024, with an additional 3% inflation adjustment in August.