Pampa Energia(US:PAM)2023-03-16 21:17Financial Performance - Pampa Energía S.A. reported revenue of $242,182 million for the year ended December 31, 2022, a 67.5% increase from $144,641 million in 2021[40]. - The gross profit for 2022 was $91,291 million, up 71.2% from $53,299 million in 2021[40]. - Operating income increased to $88,451 million in 2022, compared to $56,426 million in 2021, reflecting a growth of 56.7%[40]. - Profit for the year from continuing operations was $64,900 million in 2022, a significant increase from $30,915 million in 2021, representing a growth of 109.5%[40]. - Total comprehensive income for the year reached $222,754 million, compared to $70,362 million in 2021, marking a 216.5% increase[41]. - Basic and diluted earnings per share from continuing operations were $46.97 in 2022, up from $21.94 in 2021, indicating a growth of 113.5%[42]. - The company reported a financial cost of $30,488 million in 2022, which was an increase from $17,512 million in 2021[40]. - The company reported retained earnings of ARS 84,505 million in 2022, compared to ARS 44,454 million in 2021, which is an increase of 90%[46]. - The company generated net cash of 81,197 million from operating activities in 2022, up from 72,029 million in 2021, indicating a 12% growth[54]. Assets and Liabilities - Total assets increased to ARS 840,064 million in 2022, up from ARS 396,653 million in 2021, representing a growth of 111%[44]. - Non-current assets rose significantly to ARS 601,881 million in 2022, compared to ARS 281,011 million in 2021, marking a 114% increase[44]. - Current assets also saw substantial growth, reaching ARS 238,183 million in 2022, up from ARS 115,642 million in 2021, an increase of 106%[44]. - Total liabilities increased to ARS 435,444 million in 2022, compared to ARS 212,613 million in 2021, reflecting a growth of 105%[46]. - Shareholders' equity grew to ARS 404,620 million in 2022, up from ARS 184,040 million in 2021, indicating a rise of 119%[46]. - Borrowings increased significantly to ARS 237,437 million in 2022, up from ARS 139,630 million in 2021, reflecting a growth of 70%[46]. Investments and Acquisitions - The company completed the acquisition of Vientos Solutions S.L.U. for $2,752.5 million (US$20.5 million) and Vientos de Arauco Renovables S.A.U. for $21,657.7 million (US$121.4 million) during the year ended December 31, 2022[19]. - Intangible assets recognized from the acquisition of Vientos Solutions S.L.U. amounted to $4,242.1 million, while those from Vientos de Arauco Renovables S.A.U. totaled $11,115.9 million[19]. - The company invested 51,919 million in property, plant, and equipment acquisitions in 2022, significantly higher than 19,509 million in 2021, representing a 166% increase[54]. Operational Metrics - The company has an installed capacity of 5,088 MW as of December 31, 2022, accounting for approximately 12% of Argentina's total installed capacity[56]. - The company produced 9.8 million m³/day of natural gas and 5.3 thousand boe/day of oil as of December 31, 2022, demonstrating its significant operational scale in the oil and gas segment[57]. - The company operates two high-complexity petrochemical plants in Argentina, holding a domestic market share between 94% and 100%[58]. Regulatory and Economic Environment - The Argentine economy experienced a cumulative GDP growth of 6.4% in Q3 2022, with cumulative inflation reaching 94.8% for fiscal year 2022[67]. - The Argentine government is promoting the construction of the Néstor Kirchner Gas Pipeline, which will increase transportation capacity by 24 million cubic meters of gas per day, with an estimated cost of US$ 1,500 million[64]. Audit and Compliance - The audit report confirmed that the consolidated financial statements present fairly the financial position of the group as of December 31, 2022[3]. - The total fees for auditing and related services billed to Pampa Energía S.A. during the year ended December 31, 2022 accounted for 100% of the total fees for services billed[32]. - Pampa Energía S.A. has applied procedures on the prevention of money laundering and financing of terrorism as per professional standards[32]. - The company’s management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with IFRS[22]. Impairment and Asset Valuation - Management identified impairment indicators for the Rincón del Mangrullo cash generating unit, resulting in an impairment loss of $3,682 million as of June 30, 2022[17]. - The recoverable amount of non-financial long-lived assets is determined based on projected and discounted cash flows, with significant judgments involved[17]. - The audit involved professionals with specialized skills to evaluate the discounted cash flow model and the discount rate used in impairment assessments[17]. Energy Contracts and Agreements - The company has power availability agreements in place allowing it to sell energy and power capacity for a maximum of 283 MW under the Energy Plus contracts, primarily denominated in U.S. dollars[78]. - The company has effective agreements with CAMMESA for the sale of energy and power capacity totaling 305 MW through its thermal power plants under SE Resolution No. 21/16[94]. - The company has entered into a wholesale power purchase agreement with CAMMESA for a total of 400 MW through its Genelba thermal power plant under SE Resolution No. 287/17[97]. - The company is constructing new projects with a total capacity of 280 MW for CTB and 63 MW for PEPE IV under the applicable regimes[73]. Renewable Energy Initiatives - The company has started selling renewable energy from third-party generators for an approximate volume of 2 MW under the MATER regime[83]. - The company was awarded a dispatch priority of 41 MW for the expansion of the PEPE III wind farm under the MATER calls for tenders[89]. - The company has commissioned 4 additional wind turbines with an incremental capacity of 18 MW after the fiscal year closing[84]. Gas Production and Export - The company was awarded a base volume of 4.9 million m³/day at an annual average price of US$ 3.60/MBTU under the GasAr Plan, effective from January 1, 2021[165]. - The company secured an additional volume of 1 million m³/day for the winter period at a price of US$ 4.68/MBTU, aimed at meeting high seasonal demand and reducing gas imports[166]. - The production commitment for winter periods in 2023-2024 is 15.7 million m³/day, representing a 44% increase compared to 2022[175]. - The company participated in Round 4.2, tendering for 4.8 million m³/day at a price of US$ 3.485/MBTU from July 1, 2023, to December 31, 2028[173]. - The company has been authorized for firm exports of 1.5 million m³/day to Chile for the October 2021 – April 2022 period and 1.492 million m³/day for the October 2022 – April 2023 period[184][185].