Pampa Energía (PAMP) Q3 2024 earnings summary

Executive summary

• Q3 2024 saw strong growth in gas production, reaching 13.9 million m³/day, up 8% year-on-year, with 56% from shale sources, and power generation up 19% to 6 TWh, driven by CCGTs.

• Net debt decreased to $539 million, the lowest in eight years, with a net debt/EBITDA ratio of 0.8x.

• Adjusted EBITDA rose 14% year-on-year to $279 million, supported by Plan Gas deliveries, power generation, and equity stakes in Transener and TGS.

• Net profit attributable to shareholders was $146 million, down 4% year-on-year due to lower financial gains and reduced devaluation impact.

Financial highlights

• Power generation sales increased 12% year-on-year to $183 million, with adjusted EBITDA up 23% to $112 million.

• Oil & gas sales rose 10% to $228 million; adjusted EBITDA was $122 million, down 8% year-on-year, with production at 87.5–90.8 kboe/day, up 8–9%.

• Petrochemicals sales grew 6% to $140 million, but adjusted EBITDA dropped 88% to $2 million due to weak demand and higher costs.

• Free cash flow for Q3 2024 was $80 million, and cash position improved to $1.2 billion, up 23% year-on-year.

• Capex in Q3 was $98 million, down 59% year-on-year, focused on shale gas ramp-up and wind project construction.

Outlook and guidance

• Gas production for 2024 is forecasted to average 13 million m³/day, peaking at 16 million; 2025 average expected at 13.1–13.2 million m³/day, with peaks up to 14.5 million including exports.

• Rincón de Aranda oil project targets 12,000 barrels/day by April–May 2025 and 18,000 barrels/day by September 2025, with $700 million capex planned for 2025 and $1.5 billion through 2027.

• PEPE 6 wind farm is 98% complete, with full commissioning expected by November 2024, raising total wind capacity to 140 MW and total installed wind power to 427 MW.

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

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