Pampa Energia(US:PAM)2024-05-07 22:55Financial Performance - Q1 2024 sales decreased by 7% year-on-year, totaling US$401 million, attributed to lower spot energy and petrochemical prices, as well as reduced gas exports and crude oil sales [5]. - Adjusted EBITDA for Q1 2024 reached US$189 million, an 8% decrease compared to Q1 2023, primarily due to a 22% reduction in power generation [5]. - Net profit attributable to shareholders was US$267 million, representing an 89% increase from Q1 2023, driven by higher non-cash credit on deferred income tax [6]. - Sales revenue for Q1 2024 was AR$ 337,376 million (US$ 401 million), a 302% increase from AR$ 83,915 million (US$ 431 million) in Q1 2023 [27]. - Gross profit for Q1 2024 reached AR$ 122,193 million (US$ 143 million), compared to AR$ 33,377 million (US$ 166 million) in Q1 2023, reflecting a significant increase [27]. - Net income for the period was AR$ 223,796 million (US$ 268 million), a substantial rise from AR$ 26,928 million (US$ 141 million) in the same quarter last year [27]. - The company recorded a net income of US$198 million in Q1 2024, a 106% increase from US$96 million in Q1 2023 [41]. - The total consolidated adjusted EBITDA for Q1 24 was US$189 million, compared to US$206 million in Q1 23, reflecting a decrease in various segments [78]. Debt and Financial Position - Net debt rose to US$718 million, resulting in a net leverage ratio of 1.1x, mainly due to delays in payment collections from CAMMESA [7]. - Financial debt as of March 31, 2024, was US$ 1,563 million, slightly higher than the end of 2023, with net debt amounting to US$ 718 million, which is 17% higher than December 2023 but 21% lower year-on-year [30]. - The average life of financial debt was 2.8 years, with 73% of the debt issued in US dollars at an average coupon of 8.4% [30]. Operational Highlights - The availability of operated units improved to 96.2% in Q1 2024, up from 92.6% in Q1 2023, with thermal availability reaching 95.2% [45]. - Total production in the oil and gas segment reached 73.1 kboe per day in Q1 2024, a 27% increase compared to Q1 2023, driven by higher gas production [54]. - Domestic sales in the oil and gas segment increased by 14% to US$119 million, while foreign market sales fell by 38% to US$31 million [52]. - Total gas production at working interest rose to 68.8 kboe/day, a 31% increase from 52.4 kboe/day in Q1 23 [81]. - Gas production from El Mangrullo increased by 29% to 43.7 kboe/day in Q1 24 [81]. Segment Performance - The power generation segment reported a 11% decrease in adjusted EBITDA to US$ 154 million, while the oil and gas segment saw a 3% decrease to US$ 150 million [39]. - Adjusted EBITDA for the power generation segment was US$85 million, a 22% decrease year-on-year, attributed to lower sales and payment haircut on CAMMESA's January 2024 invoice [49]. - Adjusted EBITDA for oil and gas reached US$70 million in Q1 24, a 14% increase from Q1 23, driven by higher domestic gas sales [65]. - The petrochemicals segment's adjusted EBITDA was US$11 million in Q1 24, a 58% increase year-on-year, mainly due to higher sales of reforming products [67]. - The holding and others segment reported a net loss of US$7 million in Q1 24, compared to a net gain of US$33 million in Q1 23, primarily due to lower FX profit [73]. Regulatory and Market Developments - New permits for gas exports to Chile were approved, allowing an additional 0.6 million m/day from October to December 2024 [13]. - A 675% increase in natural gas transportation tariffs was authorized, effective from April 3, 2024, with a monthly adjustment formula included [17]. - CAMMESA has delayed payments totaling over AR$140 billion for transactions from December 2023 to February 2024, increasing days of sales outstanding to over 120 days [10]. - S&P upgraded CTEB's local scale rating from "A+" to "AA-" in April 2024, reflecting improved operational robustness and solid debt structure [37]. Capital Expenditures and Investments - The company plans to invest AR$27,690 million in infrastructure works in 2024, focusing on safety and reliability [18]. - Capital expenditures in the power generation segment were US$24 million in Q1 2024, significantly lower than US$93 million in Q1 2023, due to the commissioning of PEPE IV [50]. - Installed capacity increased to 5,332 MW, with new capacity additions of 1,630 MW in Q1 24 [80]. - New capacity additions included 287 MW in hydro and 1,343 MW in thermal power plants [80]. Pricing and Cost Trends - The average gas price in Q1 2024 was US$3.2 per MBTU, down 18% from Q1 2023, influenced by lower export volumes to Chile [56]. - The average oil price in Q1 24 was US$69.9 per bbl, with 69% of sales directed to the domestic market, down from 80% in Q1 23 [59]. - Net operating costs in Q1 24 decreased by 11% year-on-year to US$82 million, remaining stable compared to Q4 23, influenced by variations in crude oil stock and lower labor costs [60]. - The lifting cost per boe in Q1 24 was US$5.8, a reduction of 19% year-on-year and 22% quarter-on-quarter, attributed to larger production volumes [61]. - Average gross margin for Q1 24 was US$20/MWh, compared to US$21/MWh in Q1 23 [80]. - Average price for electricity in Q1 24 was US$31/MWh, stable compared to US$32/MWh in Q1 23 [80].