A quarter with many highlights
Pampa Energía is one of the main bets for those who believe in the future of Vaca Muerta.In a context where large argentine energy corporations are navigating macroeconomic volatility, Pampa Energía has delivered a quarter with many highlights.
The oil and gas segment remains the main driver of results. Revenues in the area grew 35% year-over-year, with EBITDA 40% higher than the previous year. The jump is explained by a 267% increase in crude oil sales, partially offset by a 15% drop in the barrel price. Production reached 17.3 kbbl/d, very close to the 20 kbbl/d target set for 2025.In natural gas, sales grew 2% year-over-year, and the average price remained stable, representing the second highest gas sales volume in the company's history.
The electricity generation segment also showed positive results. The average MWh price increased 21% year-over-year, which compensated for the 9% drop in dispatches.As a result, revenues grew 12% year-over-year and EBITDA 8%, driven by the efficient management of own gas during the winter, the incorporation of PEPE 6, and additional seasonal remuneration for spot open-cycle plants.
Consolidated figures
The petrochemical business recorded slight losses and continues to be marginal within the consolidated figures. Sales fell 18% year-over-year, with a 4% drop in volume and 14% in average prices, resulting in a negative EBITDA equivalent to 4% of sales.
Given its reduced weight within the income structure, the impact on the total result was limited.The Holding and others segment recorded a 16% year-over-year contraction in EBITDA, due to higher corporate expenses and a lower contribution from TGS, partially offset by better results from Transener.Pampa is consolidating as one of the main vehicles for exposure to the growth of Vaca Muerta. An Outlier consulting report highlights that the energy sector still offers significant sources of growth, particularly YPF and VIST, and in third place PAM (which has already covered part of its path).
Thus, while Pampa Energía shows a relatively balanced model between growth and investment, some key points for investors to watch from here on out are:
- How quickly the development of Rincón de Aranda can translate into growing cash flow and wider margins.
- How the electricity business evolves, especially in the face of regulatory schemes that are still seeking to be organized.
- The impact of rising operating costs and how Pampa modulates its value chain.
- And how sustainable its debt reduction is in a challenging macro environment.