Pampa Energía Announces First Quarter 2025 Results

Rhea-AI Summary

Pampa Energía (NYSE: PAM) reported its Q1 2025 financial results, showing mixed performance. Sales increased 3% YoY to US$414 million, driven by higher spot energy prices, contribution from the new PEPE 6 wind facility, and increased Plan Gas deliveries. Adjusted EBITDA grew 17% to US$220 million, benefiting from spot energy prices and PEPE 6 performance. However, net profit declined 43% to US$153 million due to lower deferred income tax recovery and rising operating costs. Key operational metrics showed stable oil and gas production at 72.7k boe/day, with gas comprising 96% of total production. Power generation remained flat at 5,951 GWh, while petrochemical volumes decreased 24%. The company's net debt position stood at US$577 million, reflecting increased working capital needs and ongoing investment in Rincón de Aranda development.

Positive

• Sales grew 3% YoY to US$414 million
• Adjusted EBITDA increased 17% YoY to US$220 million
• Power generation gross margin improved 22% to US$24.6/MWh
• Gas production share increased to 96% of total production

Negative

• Net profit declined 43% YoY to US$153 million
• Petrochemical sales volume dropped 24%
• Average gas price decreased 6% to US$3.0/MBTU
• Net debt increased to US$577 million due to working capital requirements

Insights

Financial Analyst

Pampa Energía delivered solid Q1 with 17% EBITDA growth despite mixed operational performance; stronger power segment offset weaker petrochemicals.

Pampa Energía reported a 3% year-over-year increase in sales to $414 million for Q1 2025, with adjusted EBITDA rising an impressive 17% to $220 million. This performance was driven primarily by improvements in their power generation segment, where gross margins expanded 22% to $24.6/MWh despite flat generation volumes.

The company delivered a net profit of $153 million attributable to shareholders, though this represents a 43% decline from Q1 2024. This decrease stems largely from a smaller recovery from non-cash deferred income tax compared to the previous year, coupled with rising operational costs.

Looking at segment performance, we see a mixed picture. The oil and gas division maintained stable production at 72.7k boe/day with gas comprising 96% of production (up from 94% year-over-year). However, average gas prices declined 6% to $3.0/MBTU, and the company faced headwinds from reduced gas sales to industrial customers and neighboring Chile.

The petrochemicals segment showed particular weakness with volumes sold dropping 24% to 84k tons alongside flat pricing, suggesting significant margin pressure in this division. This underperformance was offset by stronger results in power generation and increased gas deliveries under the Plan Gas program.

On the balance sheet, net debt stood at $577 million, reflecting increased working capital requirements and ongoing development at Rincón de Aranda. The company's cash position decreased to $361 million from $738 million at year-end 2024, with significant cash outflows directed toward debt repurchases and redemptions totaling $360 million.

The company's financial strategy appears focused on debt management and continued investment in core operational areas, particularly in power generation where the newly commissioned PEPE 6 wind farm is contributing positively to results. Operating cash flow improved substantially year-over-year, generating $90 million compared to a $20 million outflow in Q1 2024.

BUENOS AIRES, ARGENTINA / ACCESS Newswire / May 12, 2025 / Pampa Energía S.A. (NYSE: PAM)(Buenos Aires Stock Exchange:PAMP), an independent company with active participation in Argentine oil, gas and electricity, announces the results for the quarter ended on March 31, 2025.

Pampa's financial information is reported in US$, its functional currency. For local currency equivalents, transactional exchange rate ('FX') are applied. However, Transener and Transportadora de Gas del Sur's ('TGS') figures are inflation-adjusted as of March 31, 2025, and are converted to US$ at the period-end FX. Previously reported figures remained unchanged.

First quarter 2025 ('Q1 25') main results¹

Sales rose 3% year-on-year to US$414 million in Q1 25², driven by higher spot energy prices, the contribution from the newly commissioned Parque Eólico Pampa Energía 6 ('PEPE 6'), and greater deliveries under Plan Gas, partially offset by lower petrochemical reformer volumes and softer gas sales to industries and Chile.

Strong thermal availability and solid wind generation in Q1 25:

Pampa's main operational KPIs		Q1 25	Q1 24	Variation
Oil and gas	Production (k boe/day)	72.7	73.1	-0%
	Gas over total production	96%	94%	+2%
	Average gas price (US$/MBTU)	3.0	3.2	-6%
	Average oil price (US$/bbl)	68.4	68.6	-0%
Power	Generation (GWh)	5,951	5,928	+0%
	Gross margin (US$/MWh)	24.6	20.2	+22%
Petrochemicals	Volume sold (k ton)	84	110	-24%
	Average price (US$/ton)	1,095	1,098	-0%

Adjusted EBITDA³ reached US$220 million in Q1 25, up 17% from Q1 24, mainly explained by spot energy and PEPE 6 in the power generation, along with higher Plan gas volumes and tariff increases in TGS and Transener, partially offset by higher operating costs, lower gas sales to industries and Chile, and reduced production in petrochemicals.

US$153 million net profit to the Company's shareholders, 43% lower than in Q1 24 due to a smaller recovery from non-cash deferred income tax and increasing operating costs, offset by higher sales and positive net financial results.

Net debt stood at US$577 million, mainly reflecting increased working capital requirements and continued investment in the Rincón de Aranda development.

¹ The information is based on financial statements ('FS') prepared according to International Financial Reporting Standards ('IFRS') in force in Argentina.

² Sales from the affiliates CTBSA, Transener and TGS are excluded, shown as 'Results for participation in joint businesses and associates.'

³ Consolidated adjusted EBITDA represents the flows before financial items, income tax, depreciations and amortizations, extraordinary and non-cash income and expense, equity income, and includes affiliates' EBITDA at our ownership. Further information on section 3.1.

Consolidated balance sheet
(As of March 31, 2025 and December 2024, in millions)

Figures in million		As of 03.31.2025								As of 12.31.2024
		AR$				US$				AR$				US$
ASSETS
Property, plant and equipment			2,883,249				2,685				2,690,533				2,607
Intangible assets			102,367				95				99,170				95
Right-of-use assets			10,720				10				11,330				11
Deferred tax asset			226,917				211				161,694				157
Investments in associates and joint ventures			1,184,425				1,103				1,024,769				993
Financial assets at fair value through profit and loss			29,272				27				28,127				27
Other assets			431				-				366				-
Trade and other receivables			186,248				173				76,798				75
Total non-current assets			4,623,629				4,304				4,092,787				3,965
Inventories			267,766				250				230,095				223
Financial assets at amortized cost			86,930				81				82,628				80
Financial assets at fair value through profit and loss			722,388				673				877,623				850
Derivative financial instruments			10				-				979				1
Trade and other receivables			569,480				530				503,529				488
Cash and cash equivalents			387,416				361				761,231				738
Total current assets			2,033,990				1,895				2,456,085				2,380
Total assets			6,657,619				6,199				6,548,872				6,345
EQUITY
Equity attributable to owners of the company			3,728,731				3,472				3,391,127				3,286
Non-controlling interest			10,384				10				9,167				9
Total equity			3,739,115				3,482				3,400,294				3,295
LIABILITIES
Provisions			109,698				102				141,436				137
Income tax and minimum notional income tax provision			81,851				76				77,284				75
Deferred tax liability			50,743				47				50,223				49
Defined benefit plans			34,110				32				31,293				30
Borrowings			1,437,072				1,338				1,416,917				1,373
Trade and other payables			90,035				83				87,992				84
Total non-current liabilities			1,803,509				1,678				1,805,145				1,748
Provisions			10,487				10				10,725				10
Income tax liability			321,343				299				265,008				257
Tax liabilities			34,599				32				30,989				30
Defined benefit plans			7,077				7				7,077				7
Salaries and social security payable			25,665				24				40,035				39
Derivative financial instruments			705				1				2				-
Borrowings			379,018				353				728,096				706
Trade and other payables			336,101				313				261,501				253
Total current liabilities			1,114,995				1,039				1,343,433				1,302
Total liabilities			2,918,504				2,717				3,148,578				3,050
Total liabilities and equity			6,657,619				6,199				6,548,872				6,345

Consolidated income statement
(For the quarters ended on March 31, 2025 and 2024, in millions)

		First quarter
Figures in million		2025								2024
		AR$				US$				AR$				US$
Sales revenue			438,715				414				337,376				401
Domestic sales			372,894				352				274,579				326
Foreign market sales			65,821				62				62,797				75
Cost of sales			(301,010	)			(285	)			(215,183	)			(258	)
Gross profit			137,705				129				122,193				143
Selling expenses			(22,490	)			(21	)			(13,580	)			(16	)
Administrative expenses			(45,055	)			(43	)			(34,238	)			(41	)
Exploration expenses			(58	)			-				(82	)			-
Other operating income			35,473				32				28,992				35
Other operating expenses			(23,711	)			(22	)			(26,385	)			(31	)
Impairment of financial assets			(212	)			-				(29,830	)			(34	)
Impairment on PPE, int. assets & inventories			(807	)			-				(32	)			-
Results for part. in joint businesses & associates			48,144				46				51,416				61
Income from the sale of associates			-				-				1,458				2
Operating income			128,989				121				99,912				119
Financial income			35,494				33				1,347				2
Financial costs			(42,844	)			(41	)			(43,955	)			(53	)
Other financial results			38,050				37				43,805				52
Financial results, net			30,700				29				1,197				1
Profit before tax			159,689				150				101,109				120
Income tax			3,029				4				122,687				148
Net income for the period			162,718				154				223,796				268
Attributable to the owners of the Company			161,886				153				223,796				267
Attributable to the non-controlling interest			832				1				-				1
Net income per share to shareholders			119.0				0.1				164.6				0.2
Net income per ADR to shareholders			2,975.8				2.8				4,113.9				4.9
Average outstanding common shares1			1,360								1,360
Outstanding shares by the end of period1			1,360								1,360

Note: 1 It considers the Employee stock-based compensation plan shares, which amounted to 3.9 million common shares as of March 31, 2024 and 2025.

Consolidated cash flow statement
(For the quarters ended on March 31, 2025 and 2024, in millions)

Figures in millions		As of 03.31.2025								As of 03.31.2024
		AR$				US$				AR$				US$
OPERATING ACTIVITIES
Profit of the period			162,718				154				223,796				268
Adjustments to reconcile net profit to cash flows from operating activities			8,017				3				(74,640	)			(94	)
Changes in operating assets and liabilities			(76,850	)			(67	)			(163,370	)			(194	)
Net cash generated by (used in) operating activities			93,885				90				(14,214	)			(20	)
INVESTING ACTIVITIES
Payment for property, plant and equipment acquisitions			(164,292	)			(162	)			(109,435	)			(139	)
Collection for sales of public securities and shares acquisitions, net			147,374				151				56,151				87
Recovery of mutual funds, net			237				-				1,117				1
Payment for companies??acquisitions			(33,327	)			(31	)			(19,750	)			(24	)
Payment for right-of-use			(553	)			(1	)			(4,346	)			(5	)
Collection for equity interests in companies sales			-				-				6,206				7
Collection for joint ventures?? share repurchase			-				-				30,135				37
Dividends collection			-				-				6,955				8
Net cash generated by (used in) investing activities			(50,561	)			(43	)			(32,967	)			(28	)
FINANCING ACTIVITIES
Proceeds from borrowings			47,700				45				112,857				133
Payment of borrowings			(74,142	)			(70	)			(10,959	)			(13	)
Payment of borrowings interests			(39,094	)			(38	)			(34,128	)			(42	)
Repurchase and redemption of corporate bonds			(377,408	)			(360	)			-				-
Payments of leases			(968	)			(1	)			(782	)			(1	)
Net cash (used in) generated by financing activities			(443,912	)			(424	)			66,988				77
(Decrease) Increase in cash and cash equivalents			(400,588	)			(377	)			19,807				29
Cash and cash equivalents at the beginning of the year			761,231				738				137,973				171
Effect of exchange rate changes on cash and cash equivalents			26,773			n.a.					13,797			n.a.
(Decrease) Increase in cash and cash equivalents			(400,588	)			(377	)			19,807				29
Cash and cash equivalents at the end of the period			387,416				361				171,577				200

Note: The amounts of cash and cash equivalents does not consider financial assets at fair value through profit or loss and investments at amortized cost.

For the full version of the Earnings Report, please visit Pampa's Investor Relations website: ri.pampa.com/en.

Information about the video conference

There will be a videoconference to discuss Pampa's Q1 25 results on Tuesday, May 13, 2025, at 10:00 a.m. Eastern Standard Time/11:00 a.m. Buenos Aires Time. The hosts will be Gustavo Mariani, CEO, Adolfo Zuberbühler, CFO, Horacio Turri, VP and executive director of E&P and Lida Wang, investor relations and sustainability officer at Pampa.

For those interested in participating, please register here.

For further information about Pampa:

investor@pampa.com ri.pampa.com/en

www.argentina.gob.ar/cnv www.sec.gov

SOURCE: 1/3 Pampa Energía S.A.

View the original press release on ACCESS Newswire

FAQ

What were Pampa Energía's (PAM) key financial results for Q1 2025?

In Q1 2025, Pampa Energía reported sales of US$414 million (+3% YoY), adjusted EBITDA of US$220 million (+17% YoY), and net profit of US$153 million (-43% YoY).

How did PAM's operational metrics perform in Q1 2025?

Oil and gas production was stable at 72.7k boe/day, power generation reached 5,951 GWh, and petrochemical volumes decreased 24% to 84k tons.

What is Pampa Energía's current debt position as of Q1 2025?

The company reported a net debt of US$577 million, mainly due to increased working capital requirements and investment in the Rincón de Aranda development.

What drove PAM's revenue growth in Q1 2025?

Revenue growth was driven by higher spot energy prices, contribution from the new PEPE 6 wind facility, and increased deliveries under Plan Gas.

Why did Pampa Energía's net profit decline in Q1 2025?

The 43% decline in net profit was due to a smaller recovery from non-cash deferred income tax and increasing operating costs, partially offset by higher sales and positive net financial results.