Pampa Energy Inc 6-K, filed Aug 11, 2021
Pampa Energy Inc. (PAM)
About this 6-K
Pampa Energy Inc filed this 6-K on August 11, 2021.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN
ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
SECURITIES EXCHANGE ACT OF 1934
For the month of August, 2021
(Commission File No. 001-34429),
PAMPA ENERGIA S.A.
(PAMPA ENERGY INC.)
Argentina
(Jurisdiction of incorporation or organization)
Maipú 1
C1084ABA
City of Buenos Aires
Argentina
(Address of principal executive offices)
(Indicate by check
mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.)
Form 20-F ___X___ Form 40-F ______
(Indicate
by check mark whether the registrant by furnishing the
information contained in this form is also thereby furnishing the
information to the Commission pursuant to Rule 12g3-2(b) under
the Securities Exchange Act of 1934.)
Yes ______ No ___X___
(If "Yes"
is marked, indicate below the file number assigned to the
registrant in connection with Rule 12g3-2(b): 82- .)
This Form 6-K for Pampa Energía S.A. (“Pampa” or the “Company”) contains:
Exhibit 1: Earnings Release June 2021
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Date: August 11, 2021
| Pampa Energía S.A. | ||
| By: |
/s/ Gustavo Mariani |
|
|
Name: Gustavo Mariani Title: Chief Executive Officer |
||
FORWARD-LOOKING STATEMENTS
This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates offuture economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will a ctually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.
| Q2 21 | Q2 20 | Variation | ||
| Power | Generation (GWh) | 3,808 | 3,461 | +10% |
| Gross margin (US$/MWh) | 35.0 | 36.6 | -4% | |
| Hydrocarbon | Production (k boe/day) | 47.7 | 43.7 | +9% |
| Gas over total production | 90% | 91% | -1% | |
| Average gas price (US$/MBTU) | 3.9 | 2.0 | +99% | |
| Average oil price (US$/bbl) | 57.7 | 20.8 | +177% | |
| Petrochemicals | Volume sold (k ton) | 76 | 52 | +46% |
| Average price (US$/ton) | 1,285 | 741 | +73% | |
79% year-on-year increase in the adjusted EBITDA3, recording US$241 million during Q2 21, explained by rises of US$67 million in oil and gas, US$25 million in power generation, US$12 million in petrochemicals, and US$2 million in holding and others.
Pampa recorded a consolidated profit attributable to the Company’s shareholders of US$70 million, US$66 million higher than Q2 20, mainly due to better operating margin, offset by higher losses from discontinued operations and income tax charge in Q2 21.
Net debt decreased to US$1,042 million as of June 30, 2021, showing a continuous reduction compared to the US$1,148 million recorded by the end of 2020.
1 The information is based on FS prepared according to IFRS in force in Argentina. Only continuing operations are considered.
2 It does not include sales from the affiliates Greenwind, OldelVal, Refinor, CTBSA, Transener and TGS, which at our ownership account for US$110 million. Under IFRS they are not consolidated in Pampa, thus shown as ‘Results for participation in joint businesses and associates’.
3 Consolidated adjusted EBITDA represents the results before financial results, income tax, depreciations and amortizations, extraordinary and non-cash income and expense, equity income and other adjustments from the IFRS implementation, and includes affiliates’ EBITDA at our ownership. For further information, see section 3 of this Earnings Release.
Pampa Energía ● Q2 21 Earning Release ● 1 |
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Table of contents
Pampa Energía ● Q2 21 Earning Release ● 2 |
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| 1. | Relevant events |
| 1.1 | Oil and gas segment |
All-time-high gas production record at El Mangrullo
In line with our production commitment under Plan Gas.Ar, in May 2021 and simultaneously with the beginning of the winter period, we succeeded in increasing the processing capacity by 35 mcf/day at El Mangrullo, a key gas field of Pampa, by commissioning a temporary production facility.
Hence, we reach a record production of 226 mcf/day in July 2021 solely at said block, representing a 42% year-on-year increase and three times 2016’s average annual production.
Currently, El Mangrullo is ranked among the best gas-producing blocks at Neuquina Basin and stands on around 48 thousand acres, connected to Mulichinco and Agrio formations (tight sands or tight gas) and Vaca Muerta (shale gas). Pampa operates and holds 100% working interest until 2053.
Authorization to export gas to Chile
In May 2021, Pampa was cleared to export gas to Chile on a firm basis for a maximum volume of 53 mcf/day between October 1, 2021 – May 1, 2022.
| 1.2 | Power generation segment |
Pricing update for legacy energy (spot or without PPA)
Through SE Res. No. 440/21 issued on May 21, 2021, the spot remuneration scheme established by SE Res. No. 31/20 was increased by an average of 29%, retroactive as of February 2021. Moreover, said resolution rendered ineffective the automatic adjustment mechanism.
Technical problem at CTGEBA
On May 31, 2021, a technical problem occurred at GEBATG03 gas turbine, part of CTGEBA’s new CCGT. Consequently, the CCGT’s generation capacity was reduced by approximately 50%. Jointly with the turbine manufacturer Siemens, Pampa performed the necessary works to dismantle and repair the failure, which was successfully finished in July 2021. Moreover, the Company is making all filings required before the insurance companies to collect the damages compensations resulting from the failure and minimize losses related to the breach of availability commitments.
Commissioning of MAN engines at CTLL
As of August 3, 2021, at midnight, CAMMESA granted the commissioning of LDLMDI01 unit for a capacity of 15 MW. The unit consists of two gas-fired MAN engines, priced under spot energy through SE Res. No. 440/21. Therefore, as of the date hereof, Pampa’s installed capacity amounts to 4,970 MW, positioning as the Argentine grid’s largest independent power producer.
Maturity of CTP’s PPA
After fulfilling the 10-year PPA under SE Res. No. 220/07, CTP’s installed capacity of 30 MW started to be remunerated under spot energy through SE Res. No. 440/21 as from July 15, 2021, 12 am.
Pampa Energía ● Q2 21 Earning Release ● 3 |
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| 1.3 | Regulated businesses |
Sale of controlling stake in Edenor: transaction closing
On June 30, 2021, all Class A common shares representing 51% of the capital stock and votes of Edenor held by Pampa were transferred to Empresa de Energía del Cono Sur S.A., closing the sale transaction and marking Edenor’s change of control. Pampa announced this sale on December 28, 2020, approved by the Company’s Shareholders’ Meeting on February 17 and the ENRE, through Res. No. 207/21 issued on June 24, 2021. Pampa’s direct ownership of Edenor amounts to 4.1% over the issued capital as of the date hereof.
Moreover, over the agreed purchase price, only the third and final payment milestone of US$40 million is left to be collected, to be financed a year from the closing date at a 10% annual nominal interest rate payable quarterly, except in cases of offsetting or prepayment in advance, according to the sale and purchase agreement.
The sale of Edenor’s controlling stake reaffirms our efforts focused on expanding efficient power generation and developing natural gas reserves, fundamental pillars to attain the country’s energy sustainability.
TGS: Tariff schemes
Through ME and ENARGAS Joint Res. No. 1/21 and ENARGAS Res. No. 149/21 issued on June 2, 2021, a transitional regime was established, keeping TGS’s tariffs in force since April 2019. Moreover, until the final renegotiation agreement is executed, tariff adjustments will only be set as from April 1, 2022.
While the transitional regime is in place, no investment plan is mandatory, and it is forbidden dividend distribution, prepayment of financial and commercial debt with shareholders, acquisition of other companies, or grant loans.
To safeguard the interests of its shareholders, in July 2021, TGS submitted reconsideration motions to the PEN, the ME, and ENARGAS, challenging and requesting the annulment of the Transitional Regime’s provisions.
Transener: penalty for the total power outage in June 2019
On May 14, 2021, following the concession’s quality service and penalties regime, the ENRE fined AR$31.5 million to Transener for the outages during the month of June 2019 (ENRE Res. No. 121 and 124/21), of which AR$5.5 million is directly linked to the event that took place on June 16, 2019. Therefore, the last figure isn’t significantly different from the provision’s amount.
Besides, on May 14, 2021, through AAYANR Res. No. 3/21, the ENRE filed new charges against Transener for said event, based on an alleged breach of the purpose of promoting the operation, reliability, equality, free access, non-discrimination, and generalized use of the electricity transmission and distribution services and facilities (Section 2, Subsection c, Law No. 24,065). On June 4, 2021, Transener filed the corresponding deposition and has received no updates in this respect as of the issuance of this Earnings Release.
Pampa Energía ● Q2 21 Earning Release ● 4 |
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| 1.4 | Other events |
Income tax and dividends rate
Law No. 27,630, executed on June 16, 2021, established the following staggering income tax scheme, effective for fiscal years beginning from January 1, 2021:
| Accumulated taxable net income | Applicable income tax |
| AR$0 million - AR$5 million | 25% |
| < AR$5 million - AR$50 million | AR$1.25 million + 30% over AR$5 million surplus |
| < AR$50 million | AR$14.75 million + 35% over AR$50 million surplus |
The accumulated net income amount will be adjusted yearly, as from January 1, 2022, considering the CPI annual variation published by the INDEC.
Although Law No. 27,430 provides that dividends resulting from earnings accrued during fiscal years beginning as from January 1, 2020, are subject to 13% withholding tax, after the Law No. 27,541 and 27,630 amendments, the tax rate remained at 7% as from December 31, 2019, with no changes for future fiscal years.
Board members
On May 31,
2021, Silvana Wasersztrom, independent alternate director at Pampa, replaced Miguel Bein, independent director, until his term of office
expires. Moreover, on August 10, 2021, it was accepted the resignation of Victoria Hitce as a non-independent alternate director.
Pampa Energía ● Q2 21 Earning Release ● 5 |
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| 2. | Financial highlights |
| 2.1 | Consolidated balance sheet |
| Figures in million | As of 6.30.2021 | As of 12.31.2020 | ||||
| AR$ | US$ FX 95.72 | AR$ | US$ FX 84.15 | |||
| ASSETS | ||||||
| Property, plant and equipment | 153,639 | 1,605 | 135,445 | 1,610 | ||
| Intangible assets | 4,075 | 43 | 3,455 | 41 | ||
| Right-of-use assets | 1,595 | 17 | 867 | 10 | ||
| Deferred tax assets | 7,146 | 75 | 9,082 | 108 | ||
| Investments in joint ventures and associates | 61,544 | 643 | 46,229 | 549 | ||
| Financial assets at amortized cost | 9,598 | 100 | 8,428 | 100 | ||
| Financial assets at fair value through profit and loss | 3,811 | 40 | 942 | 11 | ||
| Other assets | 61 | 1 | 57 | 1 | ||
| Trade and other receivables | 3,249 | 34 | 3,631 | 43 | ||
| Total non-current assets | 244,718 | 2,557 | 208,136 | 2,473 | ||
| Inventories | 14,894 | 156 | 9,766 | 116 | ||
| Financial assets at amortized cost | - | - | 2,062 | 25 | ||
| Financial assets at fair value through profit and loss | 32,324 | 338 | 27,382 | 325 | ||
| Derivative financial instruments | 1 | 0 | 1 | - | ||
| Trade and other receivables | 45,275 | 473 | 28,678 | 341 | ||
| Cash and cash equivalents | 11,946 | 125 | 11,900 | 141 | ||
| Total current assets | 104,440 | 1,091 | 79,789 | 948 | ||
| Assets classified as held for sale | - | - | 123,603 | 1,469 | ||
| Total assets | 349,158 | 3,648 | 411,528 | 4,890 | ||
| EQUITY | ||||||
| Equity attributable to owners of the company | 149,939 | 1,566 | 120,247 | 1,428 | ||
| Non-controlling interest | 743 | 8 | 28,631 | 341 | ||
| Total equity | 150,682 | 1,574 | 148,878 | 1,769 | ||
| LIABILITIES | ||||||
| Investments in joint ventures and associates | 416 | 4 | 161 | 2 | ||
| Provisions | 13,428 | 140 | 9,326 | 111 | ||
| Income tax liabilities | 15,750 | 165 | 11,004 | 131 | ||
| Taxes payables | 138 | 1 | 128 | 2 | ||
| Deferred tax liabilities | - | - | 93 | 1 | ||
| Defined benefit plans | 1,944 | 20 | 1,460 | 17 | ||
| Borrowings | 130,932 | 1,368 | 115,428 | 1,372 | ||
| Other payables | 1,593 | 17 | 1,418 | 16 | ||
| Total non-current liabilities | 164,201 | 1,715 | 139,018 | 1,652 | ||
| Provisions | 363 | 4 | 1,379 | 16 | ||
| Income tax liabilities | 49 | 1 | 897 | 11 | ||
| Taxes payables | 4,295 | 45 | 3,030 | 36 | ||
| Defined benefit plans | 298 | 3 | 298 | 4 | ||
| Salaries and social security payable | 1,372 | 14 | 1,935 | 23 | ||
| Derivative financial instruments | 27 | 0 | 40 | - | ||
| Borrowings | 13,094 | 137 | 20,377 | 242 | ||
| Trade and other payables | 14,777 | 154 | 9,778 | 116 | ||
| Total current liabilities | 34,275 | 358 | 37,734 | 448 | ||
| Liabilities associated to assets classified as held for sale | - | - | 85,898 | 1,021 | ||
| Total liabilities | 198,476 | 2,074 | 262,650 | 3,121 | ||
| Total liabilities and equity | 349,158 | 3,648 | 411,528 | 4,890 | ||
Pampa Energía ● Q2 21 Earning Release ● 6 |
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| 2.2 | Consolidated income statement |
| First half | Second quarter | |||||||||||
| Figures in million | 2021 | 2020 | 2021 | 2020 | ||||||||
| AR$ | US$ | AR$ | US$ | AR$ | US$ | AR$ | US$ | |||||
| Sales revenue | 61,211 | 667 | 32,154 | 496 | 32,576 | 346 | 14,118 | 206 | ||||
| Cost of sales | (35,343) | (386) | (20,309) | (318) | (18,990) | (201) | (9,148) | (136) | ||||
| Gross profit | 25,868 | 281 | 11,845 | 178 | 13,586 | 145 | 4,970 | 70 | ||||
| Selling expenses | (1,083) | (12) | (1,000) | (16) | (541) | (5) | (401) | (6) | ||||
| Administrative expenses | (4,043) | (44) | (3,174) | (49) | (2,027) | (21) | (1,638) | (24) | ||||
| Exploration expenses | (44) | - | (9) | - | (37) | - | (5) | - | ||||
| Other operating income | 4,846 | 50 | 1,261 | 20 | 3,870 | 39 | 552 | 9 | ||||
| Other operating expenses | (3,831) | (42) | (1,276) | (19) | (781) | (9) | (818) | (11) | ||||
| Impairment of financial assets | (196) | (2) | 12 | - | (93) | (1) | 81 | 1 | ||||
| Impairment of PPE, intangible assets and inventories | (172) | (2) | (4,316) | (67) | (172) | (2) | - | - | ||||
| Results for part. in joint businesses and associates | 3,101 | 34 | 3,158 | 46 | 875 | 8 | 1,089 | 14 | ||||
| Operating income | 24,446 | 263 | 6,501 | 93 | 14,680 | 154 | 3,830 | 53 | ||||
| Financial income | 337 | 3 | 295 | 4 | 172 | 1 | 153 | 1 | ||||
| Financial costs | (7,841) | (86) | (5,348) | (82) | (3,855) | (41) | (2,705) | (39) | ||||
| Other financial results | 2,931 | 29 | 1,760 | 28 | 4,992 | 53 | 2,169 | 32 | ||||
| Financial results, net | (4,573) | (54) | (3,293) | (50) | 1,309 | 13 | (383) | (6) | ||||
| Profit before tax | 19,873 | 209 | 3,208 | 43 | 15,989 | 167 | 3,447 | 47 | ||||
| Income tax | (6,106) | (64) | (1,399) | (14) | (5,391) | (56) | (1,838) | (22) | ||||
| Net income for continuing operations | 13,767 | 145 | 1,809 | 29 | 10,598 | 111 | 1,609 | 25 | ||||
| Net income (loss) from discontinued operations | (7,129) | (75) | (1,748) | (24) | (7,654) | (80) | (2,491) | (36) | ||||
| Net income (loss) for the period | 6,638 | 70 | 61 | 5 | 2,944 | 31 | (882) | (11) | ||||
| Attributable to the owners of the Company | 9,773 | 103 | 995 | 18 | 6,621 | 70 | 220 | 4 | ||||
| Continuing operations | 13,499 | 142 | 1,942 | 31 | 10,349 | 108 | 1,582 | 24 | ||||
| Discontinued operations | (3,726) | (39) | (947) | (13) | (3,728) | (38) | (1,362) | (20) | ||||
| Attributable to the non-controlling interests | (3,135) | (33) | (934) | (13) | (3,677) | (39) | (1,102) | (15) | ||||
| Net income (loss) per share attributable to shareholders | 6.94 | 0.07 | 0.62 | 0.01 | 4.75 | 0.05 | 0.14 | 0.003 | ||||
| From continuing operations | 9.58 | 0.10 | 1.21 | 0.02 | 7.43 | 0.08 | 1.01 | 0.02 | ||||
| From discontinued operations | (2.64) | (0.03) | (0.59) | (0.01) | (2.68) | (0.03) | (0.87) | (0.01) | ||||
| Net income (loss) per ADR attributable to shareholders | 173.40 | 1.83 | 15.54 | 0.28 | 118.84 | 1.26 | 3.50 | 0.07 | ||||
| From continuing operations | 239.51 | 2.52 | 30.32 | 0.49 | 185.75 | 1.94 | 25.19 | 0.38 | ||||
| From discontinued operations | (66.11) | (0.69) | (14.79) | (0.20) | (66.91) | (0.68) | (21.69) | (0.32) | ||||
| Average outstanding common shares | 1,409.0 | 1,409.0 | 1,601.3 | 1,601.3 | 1,392.9 | 1,392.9 | 1,570.2 | 1,570.2 | ||||
| Outstanding common shares by the end of period | 1,388.8 | 1,388.8 | 1,557.1 | 1,557.1 | 1,388.8 | 1,388.8 | 1,557.1 | 1,557.1 | ||||
Pampa Energía ● Q2 21 Earning Release ● 7 |
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| 2.3 | Cash and financial borrowings |
| As of June 30, 2021, in US$ million |
Cash1 | Financial debt | Net debt | ||||||||
| Consolidated in FS |
Ownership adjusted | Consolidated in FS |
Ownership adjusted | Consolidated in FS |
Ownership adjusted | ||||||
| Power generation | 249 | 244 | 417 | 417 | 167 | 173 | |||||
| Petrochemicals | - | - | - | - | - | - | |||||
| Holding and others | 41 | 41 | - | - | (41) | (41) | |||||
| Oil and gas | 173 | 172 | 1,088 | 1,088 | 915 | 915 | |||||
| Total under IFRS/Restricted Group | 462 | 457 | 1,505 | 1,505 | 1,042 | 1,048 | |||||
| Affiliates at O/S2 | 87 | 87 | 359 | 359 | 273 | 273 | |||||
| Total with affiliates | 549 | 543 | 1,864 | 1,864 | 1,315 | 1,321 | |||||
Note: It does not include discontinued operations. Financial debt includes accrued interests. 1 It includes cash and cash equivalents, financial assets at fair value with changing results, and investments at amortized cost. 2 Under IFRS, the affiliates Greenwind, OldelVal, Refinor, CTBSA, Transener, and TGS are not consolidated in Pampa.
Debt transactions
Pampa’s financial debt at the consolidated level under IFRS4 decreased from US$1,614 million by the end of the fiscal year 2020 to US$1,505 million as of June 30, 2021. The average interest rate for US$-bearing indebtedness was 7.4%, currency in which 96% of the Company’s gross debt is denominated, mainly at a fixed rate. AR$ indebtedness’s average interest rate decreased to 36.6% due to AR$-nominated debts’ repayment at maturity for AR$6,337 million. Moreover, US$3.9 million financing maturities were paid during Q2 21. As a result, Pampa’s consolidated financial debt averaged approximately 4.6 years.
The following chart shows the debt principal maturity profile, net of repurchases, expressed in million US$ by the end of Q2 21:
Note: It only considers Pampa consolidated under IFRS; it does not include discontinued operations nor affiliates TGS, OldelVal, Transener, Greenwind, CTBSA, and Refinor.
Regarding our affiliates, CTBSA executed the ninth amendment to the CTEB Trust during the quarter, modifying the VRDs’ payment schedule to 25 principal monthly installments from July 2023 instead of 60 installments from August 2021. As of the date hereof, the VRDs’ principal balance totalizes US$94 million. Moreover, CTBSA paid at maturity US$29 million of the syndicated loan and issued Series I CB for US$27 million at a 4% nominal annual rate maturing in 2 years, and Series II CB for UVA37.5 million at a 4% nominal annual rate and initial value of AR$78.07/UVA maturing in 3 years. In addition, Greenwind paid the third amortization of the credit facility executed with IDB Invest for US$3.5 million.
After the closing of the quarter, CTBSA paid at maturity US$4 million of the syndicated loan. Moreover, Transener executed a AR$1 billion borrowing maturing in 3 years at Badlar plus an 8% rate.
4 It does not consider Edenor, which is fully divested and classified as discontinued operation in the FS. Thus, Pampa’s consolidated level under IFRS is equivalent to the Restricted Group.
Pampa Energía ● Q2 21 Earning Release ● 8 |
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As of this Earnings Release issuance, the Company complies with the covenants established in its debt agreements.
Summary of debt securities
| Company In million |
Security | Maturity | Amount issued | Amount outstanding | Coupon |
| In US$ | |||||
| Transener1 | CB Series 2 | 2021 | 101 | 86 | 9.75% |
| TGS1 | CB at discount at fixed rate | 2025 | 500 | 480 | 6.75% |
| Pampa | CB Series T at discount & fixed rate | 2023 | 500 | 390 | 7.375% |
| CB Series I at discount & fixed rate | 2027 | 750 | 636 | 7.5% | |
| CB Series III at discount & fixed rate | 2029 | 300 | 293 | 9.125% | |
| In US$-link | |||||
| CTEB | CB Series I | 2023 | 27 | 27 | 4% |
| In UVA | |||||
| CTEB | CB Series II | 2024 | 38 | 38 | 4% |
| In AR$ | |||||
| Pampa | CB Series VI | 2021 | 6,355 | 6,355 | Badlar Privada + 2.5% |
Note: 1 According to IFRS, affiliates are not consolidated in Pampa’s FS.
Credit rating
Between June and July 2021, FitchRatings upgraded Pampa’s CBs global ratings from ‘CCC’ to ‘B-,’ and the local ratings from ‘AA-’ to ‘AA’ for the long-term horizon, supported by the Company’s resiliency despite the challenging macroeconomic and regulatory environment, in addition to the reduced regulatory risk resulting from the sale of Edenor’s controlling stake.
Moreover, FitchRatings rates Transener’s CBs on the local scale from June 2021 and assigned ‘A+’ for the long-term horizon.
The following table shows the Pampa Group’s CBs ratings:
| Company | Agency | Rating | |
| Global | Local | ||
| Pampa | S&P | CCC+ | na |
| Moody's | Caa3 | na | |
| FitchRatings | B- | AA (long-term) A1+ (short-term) | |
| TGS | S&P | CCC+ | na |
| Moody's | Caa3 | na | |
| Transener | S&P | CCC- | raCCC |
| FitchRatings | na | A+ (long-term) | |
| CTEB | FitchRatings | na | A+ |
Pampa Energía ● Q2 21 Earning Release ● 9 |
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| 2.4 | Buyback of own financial securities5 |
Pampa
On June 7, 2021, Pampa’s Board of Directors resolved to halt the ninth share buyback program until Pampa’s shares and ADR’s quote reached values equal or lower than the repurchase cap. On July 1, 2021, the program was terminated without recording any buybacks as from said suspension. Moreover, on July 6, 2021, Pampa’s Board of Directors approved the tenth share buyback program under the following terms and conditions:
| IX repurchase program | X repurchase program | |
| Maximum amount to buyback | US$30 million | US$30 million |
| Maximum price | AR$92.16/common share or US$16/ADR | AR$110/common share or US$15.5/ADR |
| Period in force | 120 days as from March 4, 2021 | 120 days as from July 8, 2021 |
| Status | Terminated | In process |
In Q2 21, the Company directly and indirectly acquired 0.8 million ADR at an average price of US$14.0/ADR. After the quarter’s closing, the Company directly and indirectly bought 0.1 million ADR at an average price of US$15.5/ADR.
Moreover, the cancellation of 151.6 million common shares, which was previously approved by the Shareholders’ Meeting held on April 7, 2020, become effective in mid-June 2021.
As of August 10, 2021, Pampa’s outstanding capital stock amounts to 1,387.6 million common shares (equivalent to 55.5 million ADR)6.
TGS
As of August 10, 2021, TGS’s outstanding capital stock amounts to 752.8 million common shares (equivalent to 150.6 million ADR).
On the other hand, in Q2 21, Pampa indirectly acquired 0.4 million TGS’s ADR at an average cost of US$4.5/ADR. As of August 10, 2021, the Company’s direct and indirect ownership of TGS amounted to 29.0% of its issued capital stock.
Regarding debt securities, during Q2 21, TGS acquired and held in treasury US$2.0 million FV of its CB maturing in 2025. Therefore, as of August 10, 2021, the outstanding 2025 CB amounted to US$480.4 million.
Transener
After the
closing of Q2 21, Transener early canceled US$12.5 million FV of its CB maturing in 2021 which Transba, Transener’s subsidiary,
previously acquired. As a result, as of August 10, 2021, outstanding 2021 CB amounted to US$86.0 million.
5 Deemed to be effected transactions.
6 For further information, see Ownership Breakdown.
Pampa Energía ● Q2 21 Earning Release ● 10 |
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| 3. | Analysis of the Q2 21 results |
| Breakdown by segment Figures in US$ million |
Q2 21 | Q2 20 | Variation | ||||||
| Sales | Adjusted EBITDA | Net Income | Sales | Adjusted EBITDA | Net Income | Sales | Adjusted EBITDA | Net Income | |
| Power generation | 167 | 121 | 66 | 115 | 96 | 37 | +45% | +26% | +78% |
| Oil and Gas | 107 | 73 | 30 | 56 | 6 | (20) | +91% | NA | NA |
| Petrochemicals | 99 | 16 | 7 | 40 | 4 | 2 | +148% | NA | +250% |
| Holding and Others | 5 | 30 | 5 | 5 | 29 | 5 | - | +5% | - |
| Eliminations | (32) | - | - | (10) | - | - | +220% | NA | NA |
| Subtotal continuing operations | 346 | 241 | 108 | 206 | 135 | 24 | +68% | +79% | NA |
| Electricity distribution (discont.) | - | 7 | (38) | - | (14) | (20) | NA | NA | +90% |
| Total | 346 | 247 | 70 | 206 | 121 | 4 | +68% | +104% | NA |
Note: Net income attributable to the Company’s shareholders.
| 3.1 | Reconciliation of consolidated adjusted EBITDA |
| Reconciliation of consolidated adjusted EBITDA, in US$ million |
First half | Second quarter | ||||
| 2021 | 2020 | 2021 | 2020 | |||
| Consolidated operating income | 263 | 93 | 154 | 53 | ||
| Consolidated depreciations and amortizations | 91 | 100 | 48 | 50 | ||
| EBITDA | 354 | 193 | 202 | 103 | ||
| Adjustments from generation segment | 14 | 70 | 12 | 9 | ||
| Deletion of equity income | (14) | (20) | (3) | (10) | ||
| Deletion of PPE & intangible assets' impairment | 2 | 56 | 2 | - | ||
| Deletion of provision recovery of PEPE IV surety bond | (13) | - | (13) | - | ||
| Deletion of gain from commercial interests | (12) | (12) | (6) | (4) | ||
| Deletion of outage provision at GEBATG03 | 8 | - | 8 | - | ||
| Greenwind's EBITDA adjusted by ownership | 5 | 6 | 3 | 3 | ||
| CTBSA's EBITDA adjusted by ownership | 37 | 40 | 21 | 20 | ||
| Adjustments from oil and gas segment | 11 | 3 | (1) | 5 | ||
| Deletion of equity income | (2) | 4 | - | 6 | ||
| Deletion of gain from commercial interests | (2) | (1) | (1) | (1) | ||
| Deletion of provision for environmental remediation | 14 | - | - | - | ||
| OldelVal's EBITDA adjusted by ownership | 1 | 1 | 0 | 0 | ||
| Adjustments from petrochemicals segment | (0) | 11 | (0) | (0) | ||
| Deletion of inventory impairment | - | 11 | - | - | ||
| Deletion of gain from commercial interests | (0) | (0) | (0) | (0) | ||
| Adjustments from holding and others segment | 66 | 33 | 27 | 18 | ||
| Deletion of equity income | (18) | (30) | (5) | (10) | ||
| Deletion of gain from commercial interests | 0 | (2) | (0) | (1) | ||
| Deletion of contigencies provision | 13 | - | - | - | ||
| TGS's EBITDA adjusted by ownership | 59 | 48 | 27 | 22 | ||
| Transener's EBITDA adjusted by ownership | 8 | 15 | 4 | 7 | ||
| Refinor's EBITDA adjusted by ownership | 3 | 1 | 2 | (1) | ||
| Consolidated adjusted EBITDA, continuing op. | 444 | 310 | 241 | 135 | ||
| At our ownership | 443 | 307 | 240 | 134 | ||
| + Discontinued op. EBITDA: Edenor | 17 | 32 | 7 | (14) | ||
| Consolidated adjusted EBITDA, cont. and discont. op. | 461 | 342 | 247 | 121 | ||
| At our ownership | 449 | 324 | 240 | 126 | ||
Pampa Energía ● Q2 21 Earning Release ● 11 |
| |
| 3.2 | Analysis of the power generation segment |
| Power generation segment, consolidated Figures in US$ million |
First half | Second quarter | ||||||
| 2021 | 2020 | ∆% | 2021 | 2020 | ∆% | |||
| Sales revenue | 328 | 249 | +32% | 167 | 115 | +45% | ||
| Cost of sales | (171) | (113) | +51% | (92) | (57) | +61% | ||
| Gross profit | 157 | 136 | +15% | 75 | 58 | +29% | ||
| Selling expenses | (1) | (2) | -50% | (1) | (1) | - | ||
| Administrative expenses | (13) | (15) | -13% | (6) | (7) | -14% | ||
| Other operating income | 26 | 14 | +86% | 20 | 6 | +233% | ||
| Other operating expenses | (2) | (3) | -33% | (1) | (1) | - | ||
| Impairment of PPE and intangible assets | (2) | (56) | -96% | (2) | - | NA | ||
| Results for participation in joint businesses | 14 | 20 | -30% | 3 | 10 | -70% | ||
| Operating income | 179 | 94 | +90% | 88 | 65 | +35% | ||
| Finance income | 1 | 2 | -50% | - | 1 | -100% | ||
| Finance costs | (22) | (28) | -21% | (10) | (13) | -23% | ||
| Other financial results | 13 | 1 | NA | 30 | 2 | NA | ||
| Financial results, net | (8) | (25) | -68% | 20 | (10) | NA | ||
| Profit (loss) before tax | 171 | 69 | +148% | 108 | 55 | +96% | ||
| Income tax | (55) | (18) | +206% | (39) | (17) | +129% | ||
| Net income (loss) for the period | 116 | 51 | +127% | 69 | 38 | +82% | ||
| Attributable to owners of the Company | 113 | 53 | +113% | 66 | 37 | +78% | ||
| Attributable to non-controlling interests | 3 | (2) | NA | 3 | 1 | +200% | ||
| Adjusted EBITDA | 236 | 209 | +13% | 121 | 96 | +26% | ||
| Adjusted EBITDA at our share ownership | 235 | 206 | +14% | 120 | 95 | +27% | ||
| Increases in PPE, intangible and right-of-use assets | 4 | 39 | -90% | 3 | 17 | -82% | ||
| Depreciation and amortization | 43 | 45 | -4% | 21 | 22 | -5% | ||
In Q2 21, the higher sales accrual for US$52 million is mainly explained by the commissioning of the second CCGT at CTGEBA in July 2020, priced under PPA (SEE Res. No. 287/17 and Energía Plus). Consequently, revenue from the own fuel recognition in the Variable Production Cost (CVP) increased by US$21 million vs. Q2 20, in addition to the higher cost of gas due to Plan Gas.Ar (in turn, cost of sales increased due to higher gas purchases to our E&P). It is worth highlighting that the fuel trading accrues a minor margin contribution to the segment, and fuel management was assigned to CAMMESA within Plan Gas.Ar framework as of 2021. To a lesser extent, sales increase is explained by the recovery of Energía Plus volume demanded post-lockdown (offset by outages and slightly lower prices) and the retroactive increase to February 2021 on spot remuneration7.
The devaluation in real terms on spot or legacy remuneration partially offset these effects because the AR$ depreciation outpaced the 29% AR$ price increase. Even though spot energy comprises 59% of the 4,955 MW operated by Pampa8, it represented 26% of the segment’s sales in Q2 21. Our spot thermal units priced a 10% lower power capacity compared to Q2 20, billing an average price of US$3.1 thousand per MW-month, whereas hydroelectric units remained at US$2.1 thousand per MW-month. Moreover, there were lower revenues due to programmed maintenances and outages, especially at CTGEBA in June 20219.
In operating terms, the power generation operated by Pampa increased 10% vs. Q2 20, in line with the nationwide recovery of electricity demand after the quarantine, led by the industrial segment. CTGEBA’s new CCGT commissioned in July 2020 recorded higher generation despite our Plus unit’s programmed maintenance and technical problem (+406 GWh). Also, during the quarter, our power generation increased at CTPP, CPB, CTEB and CTIW firing alternative fuels (+237 GWh), higher water input at HPPL and HIDISA (+56 GWh), higher wind generation at PEPE II and III because in Q2 20 certain windmills were under repair (+16 GWh) and higher dispatch in northwestern Argentina despite CTG’s Plus unit outage in June (+5 GWh). These effects were partially offset by lower generation at CTGEBA’s older CCGT and CTLL due to lower gas availability from CAMMESA (-325 GWh), lower dispatch at HINISA to accumulate water reserve for the winter (-35 GWh), lower wind resource at PEMC (-10 GWh) and lower generation at EcoEnergía because of limited steam (-3 GWh).
7 For further information, see section 1.1 of this Earnings Release.
8 Under IFRS, CTEB (567 MW) and PEMC (100 MW) are affiliates; their results are not consolidated in the FS, but they are operated by Pampa and their EBITDA at our equity stake are included in Pampa’s adjusted EBITDA.
9 For further information, see section 1.1 of this Earnings Release.
Pampa Energía ● Q2 21 Earning Release ● 12 |
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In Q2 21, all power generation units operated by Pampa reached an average availability rate of 95.8%, 278 basis points lower than the 98.6% recorded in Q2 20, mainly due to the technical problems at CTGEBA and CTG’s Plus units since the end of May 2021, resuming operations in July 2021. Especially, thermal units recorded an availability of 94.6%, 388 basis points lower than the 98.4% availability recorded in Q2 20.
| Power generation's key performance indicators | 2021 | 2020 | Variation | ||||||||||||
| Hydro | Wind | Thermal | Total | Hydro | Wind | Thermal | Total | Hydro | Wind | Thermal | Total | ||||
| Installed capacity as of June (MW) | 938 | 206 | 3,811 | 4,955 | 938 | 206 | 3,601 | 4,745 | - | - | +6% | +4% | |||
| New capacity (%) | - | 100% | 48% | 41% | - | 100% | 40% | 35% | - | - | +8% | +6% | |||
| Market share (%) | 2% | 0% | 9% | 12% | 2% | 1% | 9% | 12% | -0% | -0% | +0% | -0% | |||
| Semester | |||||||||||||||
| Net generation (GWh) | 662 | 407 | 7,183 | 8,251 | 681 | 409 | 6,979 | 8,070 | -3% | -1% | +3% | +2% | |||
| Volume sold (GWh) | 661 | 422 | 7,582 | 8,665 | 676 | 410 | 7,035 | 8,121 | -2% | +3% | +8% | +7% | |||
| Average price (US$/MWh) | 23 | 70 | 49 | 48 | 28 | 69 | 43 | 43 | -16% | +1% | +14% | +12% | |||
| Average gross margin (US$/MWh) | 9 | 59 | 33 | 32 | 15 | 60 | 34 | 34 | -38% | -2% | -4% | -5% | |||
| Second quarter | |||||||||||||||
| Net generation (GWh) | 278 | 204 | 3,326 | 3,808 | 257 | 197 | 3,007 | 3,461 | +8% | +3% | +11% | +10% | |||
| Volume sold (GWh) | 280 | 208 | 3,512 | 4,000 | 257 | 198 | 3,024 | 3,479 | +9% | +5% | +16% | +15% | |||
| Average price (US$/MWh) | 31 | 70 | 55 | 54 | 29 | 70 | 48 | 47 | +6% | +1% | +16% | +14% | |||
| Average gross margin (US$/MWh) | 12 | 60 | 35 | 35 | 13 | 60 | 37 | 37 | -8% | -0% | -5% | -4% | |||
Note: Gross margin before amortization and depreciation. It includes CTEB and PEMC, operated by Pampa (50% of equity stake).
Q2 21 net operating costs, excluding depreciation and amortizations, increased 55% vs. Q2 20, mainly explained by higher gas purchases, which in Q2 21 captured 47% of the segment’s operating costs (vs. 22% in Q2 20) and 32% of the gas-fired at our thermal power plants (vs. 12% in Q2 20). CAMMESA provides the remaining gas and liquid fuel without representing any cost for the Company. Moreover, the increase in operating expenses is also explained by the higher volume of energy purchases to cover Plus contracts and repair expenses resulting from forced outages, partially offset by lower AR$-nominated costs due to devaluation. Moreover, during Q2 21, we recorded a provision recovery for the PEPE IV contingency (US$13 million).
The Q2 21 financial results amounted to a net gain of US$20 million vs. a net loss of US$10 million in Q2 20, mainly explained by higher profits from the holding of financial securities and, to a lesser extent, lower financial interests due to a reduced debt position allocated to the segment, partially offset by repurchase profit of own CB in Q2 20.
In Q2 21, our power generation’s adjusted EBITDA amounted to US$121 million (+26% vs. Q2 20), mainly due to the commissioning of CTGEBA’s second CCGT in July 2020, higher demand in Energía Plus and sales in MAT ER, the AR$ increase for legacy remuneration, and lower AR$-nominated costs due to devaluation. However, these effects were partially offset by higher real depreciation over spot remuneration, higher volume of energy purchases, programmed maintenances and forced outages in June. In addition, the adjusted EBITDA considers our proportional 50% stake of CTEB (CTBSA), contributing US$21 million in Q2 21 (vs. US$20 million in Q2 20), and a 50% stake of PEMC (Greenwind), adding US$3 million EBITDA in Q2 21 (the same as Q2 20). Moreover, the adjusted EBITDA excludes the provision recovery for the contingency at PEPE IV, CTGEBA’s technical problem expenses (US$8 million), and the recognition of commercial interests from delayed receivables, mostly from CAMMESA (US$6 million in Q2 21 and US$4 million in Q2 20).
Pampa Energía ● Q2 21 Earning Release ● 13 |
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Finally, capital expenditures in Q2 21, excluding CTEB and PEMC, decreased by 82% vs. Q2 20, mainly explained by the completion of CTGEBA’s second CCGT.
Regarding our expansion projects, the following summary shows the current status:
| Project | MW | Marketing | Currency | Awarded price | Estimated capex in US$ million1 |
Date of commissioning | ||||
| Capacity per MW-month |
Variable per MWh |
Total per MWh |
Budget | % Executed @6/30/21 | ||||||
| Loma de la Lata | 15 | SE Res. No. 440/21 | AR$ | 208,980 - 551,475(2) | 418 | 939 | 20 | 98% | August 3, 2021 | |
| Closing to CCGT Genelba Plus | 400 | PPA for 15 years | US$ | 20,500 | 6 | 34 | 350 | 90% | OC: June 12, 2019(3) CC: July 2, 2020 | |
| Closing to CCGT Ensenada | 280 | PPA for 10 years | US$ | 23,962 | 10.5 | 43 | 220 | 44% | Q2 2022 (est.) | |
Note: 1 Amount without
value-added tax. 2 It considers the range of load factor coefficient and the HMRT additional remuneration.
3 201 MW were remunerated under spot energy until July 1, 2020.
| 3.3 | Analysis of the oil and gas segment |
| Oil & gas segment, consolidated Figures in US$ million |
First half | Second quarter | ||||||
| 2021 | 2020 | ∆% | 2021 | 2020 | ∆% | |||
| Sales revenue | 186 | 143 | +30% | 107 | 56 | +91% | ||
| Cost of sales | (115) | (122) | -6% | (63) | (57) | +11% | ||
| Gross profit | 71 | 21 | +238% | 44 | (1) | NA | ||
| Selling expenses | (5) | (10) | -50% | (1) | (3) | -67% | ||
| Administrative expenses | (20) | (22) | -9% | (10) | (11) | -9% | ||
| Other operating income | 23 | 1 | NA | 19 | 1 | NA | ||
| Other operating expenses | (20) | (8) | +150% | (4) | (6) | -33% | ||
| Impairment of financial assets | (1) | - | NA | - | - | NA | ||
| Results for participation in joint businesses | 2 | (4) | NA | - | (6) | -100% | ||
| Operating income (loss) | 50 | (22) | NA | 48 | (26) | NA | ||
| Finance income | 2 | 3 | -33% | 1 | 1 | - | ||
| Finance costs | (62) | (53) | +17% | (30) | (26) | +15% | ||
| Other financial results | (3) | 12 | NA | 18 | 23 | -22% | ||
| Financial results, net | (63) | (38) | +66% | (11) | (2) | NA | ||
| Profit (loss) before tax | (13) | (60) | -78% | 37 | (28) | NA | ||
| Income tax | 10 | 14 | -29% | (7) | 8 | NA | ||
| Net income (loss) for the period | (3) | (46) | -93% | 30 | (20) | NA | ||
| Adjusted EBITDA | 107 | 35 | +200% | 73 | 6 | NA | ||
| Increases in PPE and intangible assets | 84 | 34 | +147% | 55 | 15 | +267% | ||
| Depreciation and amortization | 46 | 54 | -15% | 26 | 27 | -4% | ||
In Q2 21, our oil and gas sales increased by 91% compared to Q2 20, mainly explained by the Plan Gas.Ar, which increased both sale price and volume, improved industrial sales, and the oil prices and demand recovery after the quarantine. These effects were partially offset by lesser gas trading with third parties and the termination of gas exports in May 2020.
Our accrued gas average sale price was US$3.9/MBTU in Q2 21, the double than Q2 20, mainly explained by the winter period of Plan Gas.Ar. Said contract is effective from January 1, 2021, until and including the year 2024, which sets prices for the committed production volumes destined to power plants and the residential segment. The agreed price during the off-peak months is US$3.0/MBTU, whereas for the winter period (May – September) reaches US$4.5/MBTU. On the industries and spot segment, where CAMMESA bids gas unfulfilled by Plan Gas.Ar, the price increase was driven by Plan Gas.Ar, but not reaching levels of the said scheme, especially during winter.
Pampa Energía ● Q2 21 Earning Release ● 14 |
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Moreover, in Q2 21, 41% of our gas deliveries went to the residential segment due to winter priority under Plan Gas.Ar, 33% was fired at our thermal power plants10 and consumed as raw material for our petrochemical plants, 23% was sold to the spot/industrial market, and 3% was sold directly to CAMMESA, without recording any exports. Thus, compared to Q2 20, 70% of the deliveries were destined to CAMMESA’s spot tenders, whereas residential and industrial segments held only 5% and 7% of the deliveries, respectively. In addition, 14% was destined to our thermal power plants as a result of CTGEBA’s CCGT and to the petrochemicals segment, and export was marginal as the authorization expired in June 2020.
In operating terms, our oil and gas segment total production registered 47.7 kboe/day, 9% higher than the levels recorded year-on-year and quarter-on-quarter. Gas production reached 259 mcf/day, 8% higher than Q2 20 and 9% higher than Q1 21, mainly explained by the Plan Gas.Ar, which deliveries are higher during the winter period, offset by the roadblocks in the Province of Neuquén during the month of April 2021, which slightly affected the production commitments for May and June 202111. In particular, a significant increase was recorded at El Mangrullo (+24 mcf/day year-on-year and +12 mcf/day quarter-on-quarter), where evacuation and processing infrastructure was expanded in line with its productivity and upside potential, recording 177 mcf/day in Q2 21 and comprising 68% of our total gas production. The production at Río Neuquén also increased (+6 mcf/day year-on-year and 10 mcf/day quarter-on-quarter). These effects were partially offset by lower production at Rincón del Mangrullo due to lesser drilling and natural decline (-8 mcf/day year-on-year and -0.9 mcf/day quarter-on-quarter), and to a lesser extent, at Sierra Chata and Aguaragüe (-2 mcf/day year-on-year, with no variations quarter-on-quarter).
Oil production reached 4.6 kbbl/day in Q2 21, 16% higher than Q2 20, mainly explained by the higher demand for crude export, offset by lower domestic demand. Production increased at Gobernador Ayala, Los Blancos and El Tordillo (+0.7 kbbl/day). Moreover, 61% of the volume sold during Q2 21 was destined to the domestic market (vs. 75% in Q2 20). Compared to Q1 21, production increased 10% (+0.4 kbbl/day) due to the gradual demand recovery.
Our accrued oil average sale price in Q2 21 increased to US$57.7/barrel, vs. US$20.8/barrel in Q2 20, mainly explained by the rise in international prices, moderated by domestic prices correlated to export parity.
As of June 30, 2021, we accounted for 888 productive wells compared to 858 as of December 31, 2020.
10 Energía Plus and SEE Res. No. 287/17.
11 The affected producers, including Pampa, made the corresponding force majeure notifications before the SE, CAMMESA and the gas distribution utilities with gas supply agreements executed under Plan Gas.Ar.
Pampa Energía ● Q2 21 Earning Release ● 15 |
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| Oil and gas' key performance indicators |
2021 | 2020 | Variation | |||||||||
| Oil | Gas | Total | Oil | Gas | Total | Oil | Gas | Total | ||||
| Semester | ||||||||||||
| Volume | ||||||||||||
| Production | ||||||||||||
| In thousand m3/day | 0.7 | 7,028 | 0.7 | 6,838 | -6% | +3% | +2% | |||||
| In million cubic feet/day | 248 | 241 | ||||||||||
| In thousand boe/day | 4.4 | 41.4 | 45.7 | 4.6 | 40.2 | 44.9 | ||||||
| Sales | ||||||||||||
| In thousand m3/day | 0.6 | 7,125 | 0.7 | 7,254 | -17% | -2% | -3% | |||||
| In million cubic feet/day | 252 | 256 | ||||||||||
| In thousand boe/day | 3.9 | 41.9 | 45.8 | 4.7 | 42.7 | 47.4 | ||||||
| Average Price | ||||||||||||
| In US$/bbl | 56.8 | 37.3 | +52% | +58% | ||||||||
| In US$/MBTU | 3.4 | 2.1 | ||||||||||
| Second quarter | ||||||||||||
| Volume | ||||||||||||
| Production | ||||||||||||
| In thousand m3/day | 0.7 | 7,332 | 0.6 | 6,762 | +16% | +8% | +9% | |||||
| In million cubic feet/day | 259 | 239 | ||||||||||
| In thousand boe/day | 4.6 | 43.2 | 47.7 | 3.9 | 39.8 | 43.7 | ||||||
| Sales | ||||||||||||
| In thousand m3/day | 0.7 | 7,421 | 0.6 | 7,165 | +11% | +4% | +4% | |||||
| In million cubic feet/day | 262 | 253 | ||||||||||
| In thousand boe/day | 4.5 | 43.7 | 48.2 | 4.1 | 42.2 | 46.2 | ||||||
| Average Price | ||||||||||||
| In US$/bbl | 57.7 | 20.8 | +177% | +99% | ||||||||
| In US$/MBTU | 3.9 | 2.0 | ||||||||||
Note: Net production in Argentina. Gas volume standardized at 9,300 kilocalories (kCal).
Net operating costs in Q2 21, excluding depreciation and amortizations, decreased 33% vs. Q2 20, mainly explained by the Federal Government direct compensation from Plan Gas.Ar (US$17 million in other operating income, net from royalties) and, to a lesser extent, lower gas purchases to third parties for trading, lower transportation costs due to the lack of exports in Q2 21, and dilution of AR$-nominated costs resulting from devaluation. These effects were partially offset by higher royalties and taxes explained by better prices, higher contractor costs from resuming drilling and completion of wells due to Plan Gas.Ar and higher maintenance of oil blocks as a result of the lower activity during 2020. Quarter-on-quarter, net operating expenses decreased 43%, mainly explained by the winter intensive Plan Gas.Ar compensation and the environmental remediation provision recorded in Q1 21, partially offset by higher royalties and taxes due to better seasonal prices. In particular, the lifting cost12 reached US$5.8 per produced boe in Q2 21, 10% lower than the US$5.2 per boe recorded in Q2 20 and similar quarter-on-quarter.
In Q2 21, financial results reached a net loss of US$11 million, US$9 million higher than Q2 20, mainly because of the repurchase profit of own CB recorded in Q2 20, and to a lesser extent, higher financial interests from increased debt allocated to the segment, partially offset by higher profit from the holding of financial securities in Q2 21.
Our oil and gas’ adjusted EBITDA amounted to US$73 million in Q2 21 vs. US$6 million in Q2 20, mainly explained by the increase both in the sale price and production, especially natural gas, partially offset by higher royalties and taxes due to better prices, and higher costs related to the activity resumption. In addition, the adjusted EBITDA both in Q2 21 and Q2 20 excludes the recognition of commercial interests due to collection delays, mostly charged to CAMMESA, for US$1 million.
12 Metric equivalent to cost of sales excluding purchase and inventory, royalties, direct taxes and depreciations and amortizations.
Pampa Energía ● Q2 21 Earning Release ● 16 |
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Finally, the segment’s capital expenditures amounted to US$55 million, whereas US$15 million were recorded in Q2 20. This increase is mainly because of the commitments under Plan Gas.Ar, which reactivated drilling and completion activity at gas fields, especially from May 2021 when winter begins.
| 3.4 | Analysis of the petrochemicals segment |
| Petrochemicals segment, consolidated Figures in US$ million |
First half | Second quarter | ||||||
| 2021 | 2020 | ∆% | 2021 | 2020 | ∆% | |||
| Sales revenue | 202 | 113 | +79% | 99 | 40 | +148% | ||
| Cost of sales | (160) | (103) | +55% | (78) | (32) | +144% | ||
| Gross profit | 42 | 10 | NA | 21 | 8 | +163% | ||
| Selling expenses | (6) | (4) | +50% | (3) | (2) | +50% | ||
| Administrative expenses | (2) | (2) | - | (1) | (1) | - | ||
| Other operating expenses | (2) | (4) | -50% | (2) | (3) | -33% | ||
| Recovery of financial assets impairment | - | 1 | -100% | - | 1 | -100% | ||
| Impairment of inventories | - | (11) | -100% | - | - | NA | ||
| Operating income (loss) | 32 | (10) | NA | 15 | 3 | NA | ||
| Finance costs | (1) | (1) | - | - | - | NA | ||
| Other financial results | (3) | 4 | NA | (2) | 1 | NA | ||
| Financial results, net | (4) | 3 | NA | (2) | 1 | NA | ||
| Profit (loss) before tax | 28 | (7) | NA | 13 | 4 | +225% | ||
| Income tax | (10) | 2 | NA | (6) | (2) | +200% | ||
| Net income (loss) for the period | 18 | (5) | NA | 7 | 2 | +250% | ||
| Adjusted EBITDA | 34 | 2 | NA | 16 | 4 | NA | ||
| Increases in PPE and intangible assets | 4 | - | NA | 3 | - | NA | ||
| Depreciation and amortization | 2 | 1 | +100% | 1 | 1 | - | ||
The adjusted EBITDA of the petrochemicals segment amounted to a US$16 million gain in Q2 21, US$12 million higher than Q2 20, mainly due to the all-time-high levels of international and domestic prices, higher availability of domestic virgin naphtha, and increased demand gradually recovering as from mid-June 2020. However, these effects were partially offset by higher raw material costs, driven by international reference prices and the Plan Gas.Ar effect.
Total volume sold increased by 46% compared to Q2 20, explained by the collapse in demand due to COVID-19 in Q2 20. SBR production was deemed essential from June 2020, reaching significant export levels since the end of 2020. However, compared to Q1 21, it is worth mentioning that the lower volume sold from the reforming plant was due to the seasonal maintenance between April and May 2021, and to a lesser extent because certain dispatches were postponed to July 2021. Moreover, due to the pandemic’s second wave, there was lower styrene and polystyrene domestic demand compared to Q1 21. The amounts corresponding to Pampa are shown below:
Pampa Energía ● Q2 21 Earning Release ● 17 |
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| Petrochemicals' key performance indicators |
Products | Total | ||||
| Styrene & polystyrene1 | SBR | Reforming | ||||
| Semester | ||||||
| Volume sold 1H21 (thousand ton) | 53 | 24 | 97 | 175 | ||
| Volume sold 1H20 (thousand ton) | 40 | 14 | 85 | 139 | ||
| Variation 1H21 vs. 1H20 | +32% | +70% | +15% | +25% | ||
| Average price 1H21 (US$/ton) | 1,743 | 1,722 | 690 | 1,153 | ||
| Average price 1H20 (US$/ton) | 1,197 | 1,358 | 522 | 803 | ||
| Variation 1H21 vs. 1H20 | +46% | +27% | +32% | +44% | ||
| Second quarter | ||||||
| Volume sold Q2 21 (thousand ton) | 24 | 12 | 40 | 76 | ||
| Volume sold Q2 20 (thousand ton) | 16 | 5 | 31 | 52 | ||
| Variation Q2 21 vs. Q2 20 | +47% | +149% | +29% | +46% | ||
| Average price Q2 21 (US$/ton) | 1,919 | 1,860 | 725 | 1,285 | ||
| Average price Q2 20 (US$/ton) | 1,162 | 1,213 | 442 | 741 | ||
| Variation Q2 21 vs. Q2 20 | +65% | +53% | +64% | +73% | ||
Note: 1 It includes Propylene.
The financial results registered a US$2 million net loss in Q2 21, whereas a US$1 million net gain was recorded in Q2 20, mainly due to losses from the commodities’ hedge during Q2 21.
The capital expenditures in the segment reached US$3 million in Q2 21, whereas US$0.3 million were recorded in Q2 20, mainly due to the pandemic’s impact during Q2 20, postponing activities to 2021, in addition to the gradual recovery of said business.
| 3.5 | Analysis of the holding and others segment |
| Holding and others segment, consolidated Figures in US$ million |
First half | Second quarter | ||||||
| 2021 | 2020 | ∆% | 2021 | 2020 | ∆% | |||
| Sales revenue | 11 | 11 | - | 5 | 5 | - | ||
| Gross profit | 11 | 11 | - | 5 | 5 | - | ||
| Administrative expenses | (9) | (10) | -10% | (4) | (5) | -20% | ||
| Other operating income | 1 | 5 | -80% | - | 2 | -100% | ||
| Other operating expenses | (18) | (4) | NA | (2) | (1) | +100% | ||
| Impairment of financial assets | (1) | (1) | - | (1) | - | NA | ||
| Results for participation in joint businesses | 18 | 30 | -40% | 5 | 10 | -50% | ||
| Operating income (loss) | 2 | 31 | -94% | 3 | 11 | -73% | ||
| Finance costs | (1) | (1) | - | (1) | (1) | - | ||
| Other financial results | 22 | 11 | +100% | 7 | 6 | +17% | ||
| Financial results, net | 21 | 10 | +110% | 6 | 5 | +20% | ||
| Profit (loss) before tax | 23 | 41 | -44% | 9 | 16 | -44% | ||
| Income tax | (9) | (12) | -25% | (4) | (11) | -64% | ||
| Net income for the period | 14 | 29 | -52% | 5 | 5 | - | ||
| Adjusted EBITDA | 68 | 64 | +6% | 30 | 29 | +5% | ||
| Increases in PPE | 1 | - | NA | 1 | - | NA | ||
| Depreciation and amortization | - | - | NA | - | - | NA | ||
In the holding and others segment, without considering the equity income from affiliates (Transener, TGS and Refinor), a negative operating margin of US$2 million was recorded, US$3 million less than Q2 20, mainly explained by tax recoveries in Q2 20.
Pampa Energía ● Q2 21 Earning Release ● 18 |
| |
During Q2 21, a US$1 million year-on-year improvement was recorded in the financial results, reaching a net gain of US$6 million, mainly due to profits from the holding of financial securities in Q2 21.
The adjusted EBITDA of our holding and others segment was 5% higher than Q2 20, recording US$30 million in Q2 21. The adjusted EBITDA excludes the equity income from our participation in TGS, Transener and Refinor. In turn, it adds the EBITDA adjusted by equity ownership in these businesses.
The EBITDA adjusted by our direct and indirect ownership of 29.0% and 27.6% in TGS were US$27 million (US$93 million at 100%) in Q2 21 and US$22 million (US$79 million at 100%) in Q2 20, respectively. The increase was mainly due to the substantial international price recovery for natural gasoline and LPG, higher ethane dispatched volume to Dow Chemical, and increased midstream revenues from natural gas transportation and conditioning service in Vaca Muerta. However, these effects were partially offset by lower regulated revenues due to lack of tariff adjustment as from April 2019, lower export volume and higher natural gas cost driven by the Plan Gas.Ar, which is used to replace thermal reduction at Cerri Complex plant. Moreover, the depreciation affected over AR$-nominated regulated revenues, compensated by lower AR$-nominated expenses.
In Transener, the EBITDA adjusted by our indirect stake ownership of 26.3% decreased to US$4 million (US$14 million at 100%) in Q2 21 vs. US$7 million (US$28 million at 100%) in Q2 20, mainly due to the tariff freeze as from February 2020 which, in an inflationary scenario, harms Transener’s AR$-nominated regulated revenues. In addition, the lack of tariff adjustment is worsened by the AR$ devaluation on regulated revenues, partially offset by lower AR$-nominated expenses.
In Refinor, the EBITDA adjusted by our stake ownership of 28.5% in Q2 21 recorded a gain of US$2 million (US$6 million at 100%), whereas a loss of US$1 million (US$2 million at 100%) was recorded in Q2 20, mainly explained by higher sale prices and the gradual recovery of gasoline demand from the lockdown, and to a lesser extent by lower AR$-nominated expenses, partially offset by increased crude oil costs, which is the refinery’s primary raw material, and devaluation effect over AR$-nominated revenues.
Pampa Energía ● Q2 21 Earning Release ● 19 |
| |
| 3.6 | Analysis of the semester, by subsidiary and segment |
| Subsidiary In US$ million |
First half 2021 | First half 2020 | |||||||
| % Pampa | Adjusted EBITDA | Net debt2 | Net income3 | % Pampa | Adjusted EBITDA | Net debt2 | Net income3 | ||
| Power generation segment | |||||||||
| Diamante | 61.0% | 3 | (2) | 2 | 61.0% | 4 | (15) | 1 | |
| Los Nihuiles | 52.0% | 0 | (12) | 4 | 52.0% | 3 | (16) | (4) | |
| Greenwind | 10 | 73 | (5) | 12 | 99 | 4 | |||
| Non-controlling stake adjustment | (5) | (36) | 2 | (6) | (49) | (2) | |||
| Subtotal Greenwind adjusted by ownership | 50.0% | 5 | 36 | (2) | 50.0% | 6 | 49 | 2 | |
| CTBSA | 75 | 221 | 32 | 80 | 247 | 47 | |||
| Non-controlling stake adjustment | (37) | (110) | (16) | (40) | (123) | (23) | |||
| Subtotal CTBSA adjusted by ownership | 50.0% | 37 | 110 | 16 | 50.0% | 40 | 123 | 23 | |
| Pampa stand-alone, other companies, adjs. & deletions1 | 190 | 181 | 93 | 156 | 391 | 30 | |||
| Subtotal power generation | 236 | 314 | 113 | 209 | 531 | 53 | |||
| Oil & gas segment | |||||||||
| OldelVal | 30 | (14) | 9 | 28 | (4) | 18 | |||
| Non-controlling stake adjustment | (29) | 14 | (9) | (27) | 4 | (18) | |||
| Subtotal OldelVal adjusted by ownership | 2.1% | 1 | (0) | 0 | 2.1% | 1 | (0) | 0 | |
| Pampa stand-alone, other companies, adjs. & deletions1 | 106 | 915 | (3) | 35 | 842 | (46) | |||
| Subtotal oil & gas | 107 | 915 | (3) | 35 | 841 | (46) | |||
| Petrochemicals segment | |||||||||
| Pampa Energía | 100.0% | 34 | - | 18 | 100.0% | 2 | - | (5) | |
| Subtotal petrochemicals | 34 | - | 18 | 2 | - | (5) | |||
| Holding & others segment | |||||||||
| Transener | 31 | 3 | (14) | 57 | 15 | 32 | |||
| Non-controlling stake adjustment | (23) | (2) | 11 | (42) | (11) | (24) | |||
| Subtotal Transener adjusted by ownership | 26.3% | 8 | 1 | (4) | 26.3% | 15 | 4 | 9 | |
| TGS | 205 | 404 | 81 | 175 | 264 | 76 | |||
| Non-controlling stake adjustment | (146) | (287) | (57) | (127) | (191) | (55) | |||
| Subtotal TGS adjusted by ownership | 29.0% | 59 | 117 | 23 | 27.6% | 48 | 73 | 21 | |
| Refinor | 12 | 29 | 2 | 3 | 19 | 3 | |||
| Non-controlling stake adjustment | (8) | (21) | (1) | (2) | (13) | (2) | |||
| Subtotal Refinor adjusted by ownership | 28.5% | 3 | 8 | 1 | 28.5% | 1 | 5 | 1 | |
| Pampa stand-alone, other companies, adjs. & deletions1 | (3) | (41) | (6) | (1) | (2) | (1) | |||
| Subtotal holding & others | 68 | 86 | 14 | 64 | 80 | 29 | |||
| Deletions | - | (273) | - | - | (255) | - | |||
| Total consolidated, continuing operations | 444 | 1,042 | 142 | 310 | 1,198 | 31 | |||
| At our share ownership | 443 | 1,321 | 142 | 307 | 1,467 | 31 | |||
| + Discontinued operations: Edenor | 4.1% | 17 | - | (39) | 55.1% | 32 | 70 | (13) | |
| Total consolidated, continuing and discontinued operations | 461 | 1,042 | 103 | 342 | 1,268 | 18 | |||
| At our share ownership | 449 | 1,321 | 103 | 324 | 1,505 | 18 | |||
Note:
1 The deletions correspond to other companies or inter-companies or debt repurchases. 2 Net debt includes holding companies.
3 Attributable to the Company’s shareholders.
Pampa Energía ● Q2 21 Earning Release ● 20 |
| |
| 3.7 | Analysis of the quarter, by subsidiary and segment |
| Subsidiary In US$ million |
Second quarter 2021 | Second quarter 2020 | |||||||
| % Pampa | Adjusted EBITDA | Net debt2 | Net income3 | % Pampa | Adjusted EBITDA | Net debt2 | Net income3 | ||
| Power generation segment | |||||||||
| Diamante | 61.0% | 2 | (2) | 1 | 61.0% | 1 | (15) | 1 | |
| Los Nihuiles | 52.0% | (0) | (12) | 4 | 52.0% | 1 | (16) | 1 | |
| Greenwind | 5 | 73 | (5) | 6 | 99 | 5 | |||
| Non-controlling stake adjustment | (3) | (36) | 2 | (3) | (49) | (2) | |||
| Subtotal Greenwind adjusted by ownership | 50.0% | 3 | 36 | (2) | 50.0% | 3 | 49 | 2 | |
| CTBSA | 42 | 221 | 11 | 41 | 247 | 28 | |||
| Non-controlling stake adjustment | (21) | (110) | (6) | (20) | (123) | (14) | |||
| Subtotal CTBSA adjusted by ownership | 50.0% | 21 | 110 | 6 | 50.0% | 20 | 123 | 14 | |
| Pampa stand-alone, other companies, adjs. & deletions1 | 96 | 181 | 57 | 70 | 391 | 18 | |||
| Subtotal power generation | 121 | 314 | 66 | 96 | 531 | 37 | |||
| Oil & gas segment | |||||||||
| OldelVal | 15 | (14) | 1 | 13 | (4) | 7 | |||
| Non-controlling stake adjustment | (15) | 14 | (1) | (13) | 4 | (7) | |||
| Subtotal OldelVal adjusted by ownership | 2.1% | 0 | (0) | 0 | 2.1% | 0 | (0) | 0 | |
| Pampa stand-alone, other companies, adjs. & deletions1 | 73 | 915 | 30 | 6 | 842 | (20) | |||
| Subtotal oil & gas | 73 | 915 | 30 | 6 | 841 | (20) | |||
| Petrochemicals segment | |||||||||
| Pampa Energía | 100.0% | 16 | - | 7 | 100.0% | 4 | - | 2 | |
| Subtotal petrochemicals | 16 | - | 7 | 4 | - | 2 | |||
| Holding & others segment | |||||||||
| Transener | 14 | 3 | (19) | 28 | 15 | 16 | |||
| Non-controlling stake adjustment | (10) | (2) | 14 | (20) | (11) | (12) | |||
| Subtotal Transener adjusted by ownership | 26.3% | 4 | 1 | (5) | 26.3% | 7 | 4 | 4 | |
| TGS | 93 | 404 | 38 | 79 | 264 | 23 | |||
| Non-controlling stake adjustment | (66) | (287) | (27) | (57) | (191) | (17) | |||
| Subtotal TGS adjusted by ownership | 29.0% | 27 | 117 | 11 | 27.6% | 22 | 73 | 6 | |
| Refinor | 6 | 29 | 1 | (2) | 19 | (6) | |||
| Non-controlling stake adjustment | (4) | (21) | (1) | 1 | (13) | 4 | |||
| Subtotal Refinor adjusted by ownership | 28.5% | 2 | 8 | 0 | 28.5% | (1) | 5 | (2) | |
| Pampa stand-alone, other companies, adjs. & deletions1 | (2) | (41) | (1) | 0 | (2) | (4) | |||
| Subtotal holding & others | 30 | 86 | 5 | 29 | 80 | 5 | |||
| Deletions | - | (273) | - | - | (255) | - | |||
| Total consolidated, continuing operations | 241 | 1,042 | 108 | 135 | 1,198 | 24 | |||
| At our share ownership | 240 | 1,321 | 108 | 134 | 1,467 | 24 | |||
| + Discontinued operations: Edenor | 4.1% | 7 | - | (38) | 55.1% | (14) | 70 | (20) | |
| Total consolidated, continuing and discontinued operations | 247 | 1,042 | 70 | 121 | 1,268 | 4 | |||
| At our share ownership | 240 | 1,321 | 70 | 126 | 1,505 | 4 | |||
Note:
1 The deletions correspond to other companies or inter-companies or debt repurchases. 2 Net debt includes holding companies.
3 Attributable to the Company’s shareholders.
Pampa Energía ● Q2 21 Earning Release ● 21 |
| |
| 4. | Appendix |
| 4.1 | Power generation, by power plant |
| Power generation's key performance indicators |
Hydroelectric | Wind | Subtotal hydro +wind |
Thermal | Total | |||||||||||||||||
| HINISA | HIDISA | HPPL | PEMC1 | PEPE2 | PEPE3 | CTLL | CTG | CTP | CPB | CTPP | CTIW | CTGEBA2 | Eco- Energía |
CTEB1 | Subtotal | |||||||
| Installed capacity (MW) | 265 | 388 | 285 | 100 | 53 | 53 | 1,144 | 765 | 361 | 30 | 620 | 100 | 100 | 1,253 | 14 | 567 | 3,811 | 4,955 | ||||
| New capacity (MW) | - | - | - | 100 | 53 | 53 | 206 | 364 | 100 | 30 | - | 100 | 100 | 565 | 14 | 567 | 1,841 | 2,048 | ||||
| Market share | 0.6% | 0.9% | 0.7% | 0.2% | 0.1% | 0.1% | 2.7% | 1.8% | 0.9% | 0.1% | 1.5% | 0.2% | 0.2% | 3.0% | 0.03% | 1.3% | 9.0% | 11.7% | ||||
| Semester | ||||||||||||||||||||||
| Net generation 1H21 (GWh) | 184 | 158 | 320 | 176 | 104 | 127 | 1,068 | 2,237 | 141 | 25 | 92 | 165 | 147 | 4,156 | 38 | 181 | 7,183 | 8,251 | ||||
| Market share | 0.3% | 0.2% | 0.5% | 0.3% | 0.2% | 0.2% | 1.5% | 3.2% | 0.2% | 0.0% | 0.1% | 0.2% | 0.2% | 6.0% | 0.1% | 0.3% | 10.4% | 12.0% | ||||
| Sales 1H21 (GWh) | 183 | 157 | 320 | 176 | 120 | 127 | 1,083 | 2,232 | 261 | 25 | 92 | 165 | 147 | 4,399 | 81 | 181 | 7,582 | 8,665 | ||||
| Net generation 1H20 (GWh) | 209 | 134 | 338 | 200 | 99 | 110 | 1,090 | 2,475 | 310 | 31 | 488 | 38 | 78 | 3,369 | 42 | 147 | 6,979 | 8,070 | ||||
| Variation 1H21 vs. 1H20 | -12% | +18% | -5% | -12% | +5% | +15% | -2% | -10% | -54% | -21% | -81% | na | +89% | +23% | -9% | +23% | +3% | +2% | ||||
| Sales 1H20 (GWh) | 209 | 134 | 333 | 200 | 97 | 114 | 1,087 | 2,473 | 311 | 31 | 487 | 38 | 78 | 3,424 | 45 | 147 | 7,035 | 8,121 | ||||
| Avg. price 1H21 (US$/MWh) | 23 | 37 | 16 | 71 | 73 | 67 | 42 | 35 | 47 | 134 | 109 | 115 | 103 | 35 | 28 | na | 49 | 48 | ||||
| Avg. price 1H20 (US$/MWh) | 28 | 50 | 19 | 70 | 71 | 68 | 43 | 33 | 31 | 109 | 30 | na | na | 21 | 58 | na | 43 | 43 | ||||
| Avg. gross margin 1H21 (US$/MWh) | 3 | 19 | 8 | 60 | 58 | 57 | 29 | 31 | 14 | 95 | 13 | 94 | 82 | 16 | 11 | na | 33 | 32 | ||||
| Avg. gross margin 1H20 (US$/MWh) | 16 | 33 | 8 | 61 | 57 | 60 | 32 | 30 | 16 | 77 | 17 | na | 135 | 13 | 16 | na | 34 | 34 | ||||
| Second quarter | ||||||||||||||||||||||
| Net generation Q2 21 (GWh) | 27 | 59 | 192 | 87 | 52 | 65 | 482 | 1,093 | 17 | 8 | 73 | 101 | 76 | 1,868 | 19 | 70 | 3,326 | 3,808 | ||||
| Market share | 0.1% | 0.2% | 0.6% | 0.3% | 0.2% | 0.2% | 1.4% | 3.2% | 0.1% | 0.0% | 0.2% | 0.3% | 0.2% | 5.5% | 0.1% | 0.2% | 9.9% | 11.3% | ||||
| Sales Q2 21 (GWh) | 29 | 59 | 192 | 87 | 57 | 65 | 488 | 1,091 | 71 | 8 | 74 | 101 | 76 | 1,987 | 34 | 70 | 3,512 | 4,000 | ||||
| Net generation Q2 20 (GWh) | 62 | 47 | 148 | 97 | 50 | 50 | 454 | 1,189 | 16 | 5 | 14 | 20 | 30 | 1,692 | 23 | 18 | 3,007 | 3,461 | ||||
| Variation Q2 21 vs. Q2 20 | -56% | +26% | +30% | -10% | +3% | +29% | +6% | -8% | +7% | +72% | na | na | na | +10% | -14% | na | +11% | +10% | ||||
| Sales Q2 20 (GWh) | 62 | 47 | 148 | 97 | 51 | 50 | 455 | 1,187 | 16 | 5 | 15 | 20 | 30 | 1,710 | 23 | 18 | 3,024 | 3,479 | ||||
| Avg. price Q2 21 (US$/MWh) | 74 | 58 | 16 | 71 | 72 | 67 | 48 | 36 | 84 | na | 79 | 99 | 101 | 39 | 26 | na | 55 | 54 | ||||
| Avg. price Q2 20 (US$/MWh) | 35 | 59 | 17 | 70 | 71 | 68 | 47 | 33 | na | na | na | na | na | 20 | 51 | na | 48 | 47 | ||||
| Avg. gross margin Q2 21 (US$/MWh) | - | 32 | 9 | 61 | 62 | 57 | 33 | 33 | 24 | na | 15 | 79 | 79 | 15 | 10 | na | 35 | 35 | ||||
| Avg. gross margin Q2 20 (US$/MWh) | 15 | 35 | 6 | 61 | 58 | 60 | 34 | 30 | 81 | na | 85 | na | na | 11 | 1 | na | 37 | 37 | ||||
Note: Gross margin before amortization and depreciation. 1 Operated by Pampa (50% of equity stake). 2 Commissioning of ST02 as of July 2, 2020.
Pampa Energía ● Q2 21 Earning Release ● 22 |
| |
| 4.2 | Oil and gas production, by area |
Note: Production in Argentina. 1 It doesn’t include shale formation. 2 It includes La Tapera - Puesto Quiroga field. 3 From gas fields.
| 4.3 | Electricity distribution segment, discontinued13 |
| Electricity distribution segment, discontinued Figures in US$ million |
First half | Second quarter | ||||||
| 2021 | 2020 | ∆% | 2021 | 2020 | ∆% | |||
| Sales revenue | 493 | 563 | -13% | 264 | 245 | +8% | ||
| Cost of sales | (398) | (480) | -17% | (217) | (225) | -3% | ||
| Gross profit | 95 | 83 | +14% | 47 | 20 | +132% | ||
| Selling expenses | (36) | (37) | -3% | (20) | (18) | +11% | ||
| Administrative expenses | (26) | (27) | -1% | (15) | (14) | +5% | ||
| Other operating income | 21 | 8 | +153% | 15 | 3 | NA | ||
| Other operating expenses | (17) | (11) | +61% | (9) | (6) | +59% | ||
| Impairment of financial assets | (11) | (27) | -59% | (4) | (21) | -82% | ||
| Results for participation in joint businesses | - | (0) | -100% | - | (0) | -100% | ||
| Recovery of PPE impairment | 15 | - | NA | 24 | - | NA | ||
| Operating income (loss) | 41 | (10) | NA | 39 | (35) | NA | ||
| RECPAM | 120 | 46 | +159% | 61 | 20 | +201% | ||
| Finance income | 0 | 8 | -97% | 0 | 4 | -98% | ||
| Finance costs | (106) | (42) | +155% | (58) | (23) | +155% | ||
| Other financial results | 8 | (19) | NA | 7 | (8) | NA | ||
| Profit (loss) before tax | 62 | (17) | NA | 48 | (41) | NA | ||
| Income tax | (138) | (8) | NA | (129) | 5 | NA | ||
| Net income (loss) for the period | (75) | (25) | +204% | (80) | (36) | +121% | ||
| Attributable to owners of the Company | (39) | (13) | +200% | (38) | (20) | +90% | ||
| Attributable to non-controlling interests | (36) | (12) | +209% | (42) | (16) | +158% | ||
| Adjusted EBITDA, discontinued | 17 | 32 | -47% | 7 | (14) | NA | ||
| Increases in PPE, intangible and right-of-use assets | 64 | 57 | +13% | 37 | 35 | +6% | ||
| Depreciation and amortization | - | 41 | -100% | - | 21 | -100% | ||
13 On June 30, 2021, the sale closing of the controlling stake in Edenor took place. Consequently, under IFRS, the electricity distribution segment is deconsolidated from Pampa’s FS and shown as discontinued operations for the current and comparative periods. For further information, see section 1.3 of this Earnings Release.
Pampa Energía ● Q2 21 Earning Release ● 23 |
| |
| 5. | Glossary of terms |
| Term | Definition |
| Q1 21/Q1 20 | First quarter of 2021/First quarter of 2020 |
| Q2 21/Q2 20 | Second quarter of 2021/Second quarter of 2020 |
| 1H 21/1H 20 | First half of 2021/First half of 2020 |
| AAYANR | Área de Aplicación y Administración de Normas Regulatorias (Regulatory Standards’ Application and Administration Area) |
| ADRs/ADSs | American Depositary Receipts |
| AR$ | Argentine Pesos |
| Bbl | Barrel |
| Boe | Barrels of oil equivalent |
| CAMMESA | Compañía Administradora del Mercado Mayorista Eléctrico S.A. (Argentine Wholesale Electricity Market Clearing Company) |
| CB | Corporate Bonds |
| CCGT | Combined cycle gas turbine |
| CEO | Chief Executive Officer |
| CFO | Chief Financial Officer |
| COVID-19 | Coronavirus disease |
| CPB | Piedra Buena Thermal Power Plant |
| CPI | Consumer Price Index |
| CTBSA | CT Barragán S.A. |
| CTEB | Ensenada Barragán Thermal Power Plant |
| CTEB Trust | A supplementary agreement under the global administration and financial trusts program for the execution of energy infrastructure works -Series 1- ENARSA (Barragán) |
| CTG | Güemes Thermal Power Plant |
| CTGEBA | Genelba Thermal Power Plant |
| CTIW | Ingeniero White Thermal Power Plant |
| CTLL | Loma De La Lata Thermal Power Plant |
| CTP | Piquirenda Thermal Power Plant |
| CTPP | Parque Pilar Thermal Power Plant |
| DNU | Decreto de Necesidad y Urgencia (Executive Decree) |
| E&P | Exploration and Production |
| EBITDA | Earnings before interest, tax, depreciation and amortization |
| EcoEnergía | EcoEnergía Co-Generation Power Plant |
| Edenor | Empresa Distribuidora y Comercializadora Norte S.A. |
| ENARGAS | Ente Nacional Regulador del Gas (National Gas Regulatory Entity) |
| Energía Plus | Energía Plus Program, SE Res. No. 1,281/06 |
| ENRE | Ente Nacional Regulador de la Electricidad (National Electricity Regulatory Entity) |
| Est. | Estimated |
| Federal Government | Federal Government of the Republic of Argentina |
| FS | Financial Statements |
| FV | Face Value |
| FX | Nominal exchange rate |
| Greenwind | Greenwind S.A. |
| GWh | Gigawatt-hour |
| HIDISA | Diamante Hydroelectric Power Plant |
| HINISA | Los Nihuiles Hydroelectric Power Plant |
Pampa Energía ● Q2 21 Earning Release ● 24 |
| |
| HMRT | Horas de Alto Requerimiento Térmico del Mes (Hours of the month with a high thermal demand) |
| HPPL | Pichi Picún Leufú Hydroelectric Power Plant |
| IDB | Inter-American Development Bank Invest (former Inter-American Investment Corporation) |
| IFRS | International Financial Reporting Standards |
| INDEC | Instituto Nacional de Estadística y Censos de Argentina (National Institute of Statistics and Censuses) |
| Kbbl/kboe | Thousands of barrels/thousands of barrels of oil equivalent |
| LPG | Liquified Petroleum Gas |
| M3 | Cubic meter |
| Mcf | Million cubic feet |
| MAT ER | Term Market from Renewable Energy Sources |
| MBTU | Million British Thermal Unit |
| ME | Ministry of Economics |
| MW/MWh | Megawatt/Megawatt-hour |
| N.a. | Not applicable |
| O/S | At equity ownership |
| OldelVal | Oleoductos del Valle S.A. |
| Pampa / the Company | Pampa Energía S.A. |
| Pampa Group | Pampa Energía S.A. and its subsidiaries |
| PEMC | Ingeniero Mario Cebreiro Wind Farm |
| PEPE | Pampa Energía Wind Farm |
| Plan Gas.Ar | Argentine Natural Gas Production Promotion Program – 2020 – 2024 Supply and Demand Scheme (DNU No. 892/20 and supplementary regulations) |
| PPA | Power Purchase Agreement |
| PPE | Property, Plant and Equipment |
| RECPAM | Results from a net monetary position |
| Refinor | Refinería del Norte S.A. |
| Res. | Resolution/Resolutions |
| SADI | Sistema Argentino de Interconexión (Argentine Electricity Grid) |
| SBR | Styrene-Butadiene Rubber |
| SE | Secretariat of Energy |
| SEE | Under Secretariat of Electric Energy (former Secretariat of Electric Energy) |
| TGS | Transportadora de Gas del Sur S.A. |
| Ton | Metric Ton |
| Transba |
Empresa de Transporte de Energía Eléctrica por Distribución Troncal de la Provincia de Buenos Aires Transba S.A. |
| Transener | Compañía de Transporte de Energía Eléctrica en Alta Tensión Transener S.A. |
| US$ | U.S. Dollars |
| UVA | Unidad de Valor Adquisitivo (Acquisitive Value Units) |
| VRDs | Debt Securities |
Pampa Energía ● Q2 21 Earning Release ● 25 |