Buenos Aires — Pampa Energía (PAM), the Argentine energy company with operations in the Vaca Muerta shale play, announced second-quarter net income attributable to shareholders of $164 million, up 156% against the same period of 2022.
Despite a 17% year-on-year increase in electricity generation, and a 4% increase in total hydrocarbon production (67,3000 barrels of oil equivalent per day), Pampa’s results were mainly driven by the holding of financial instruments and “to a lesser extent” by the devaluation of the net liability position in Argentine pesos, “partially offset by higher interest on the increase in Argentine-peso debt, and income tax,” the company said in its earnings report Wednesday.
Pampa Energía is among the five gas producers in Argentina and among the first two, only behind YPF, in terms of non-conventional tight gas production.
The company’s net debt continued to decline between April and June to $787 million, with a net debt ratio of 1.1x.
Lower EBITDA
The company’s balance sheet showed an adjusted EBITDA of $222 million, a 13% decrease compared to the second quarter of 2022.
The decrease is attributed to several factors: a 53% decline in holding company and other results, a 48% decline in petrochemical operations, a 4% decline in oil and gas activities, and a 1% decline in power generation.
During the period in question, the average price of crude oil fell by 10% year-on-year.
Stable sales figures
Pampa Energía’s sales for the quarter amounted to $464 million, closely aligned with the figures for the same period of the previous year.
This stability was due to better gas prices and an increase in the volume of gas produced. The inclusion of PEMC and PEA3 , together with a higher volume of refurbishments, also contributed to maintaining sales figures.
However, challenges in the petrochemical and crude oil sectors led to lower prices, while lower base energy revenues further impacted revenues.
Record natural gas production
Pampa Energía saw natural gas production of 13.5 million m3/day during the quarter, an 18% increase compared to the previous year’s peak.
This exceptional growth is mainly driven by the development of shale gas in the Vaca Muerta basin.
Of the total production, 60% came from El Mangrullo and 25% from Sierra Chata, both significant gas fields in the Neuquen Basin.
