Pampa Energía S.A. (NYSE:PAM) Q3 2022 Earnings Conference Call November 8, 2022 10:00 AM ET

Company Participants

Margarita Chun - Chief, IR

Lida Wang - Head, IR & Sustainability

Gustavo Mariani - CEO, EVP & Vice Chairman

Nicolas Mindlin - Executive Director, Finances, M&A and CFO

Conference Call Participants

Margarita Chun

Good morning, ladies and gentlemen. Thank you for waiting. I'm Margarita Chun from IR, and we would like to welcome everyone to company Pampa Energía's Third Quarter 2022 Results Video Conference. We inform you that this event is being recorded. [Operator Instructions].

Before proceeding, please read the disclaimer that is located on the second page of our presentation. Let me mention that forward-looking statements are based on Pampa Energía's management beliefs and assumptions and information currently available to the company. They involve risks, uncertainties and assumptions because they are related to future events that may or may not occur. Investors should understand that general economic conditions and industry conditions and other operating factors could also affect the future results of Pampa Energía, and could cause results to differ materially from those expressed in such forward-looking statements.

Now I'll turn the video conference over to Lida Wang, the Investor Relations and Sustainability Officer, Pampa Energía. Please go ahead.

Lida Wang

[Technical Difficulty]. Hello, Can you hear me? Sorry, technical problem. Anyway. Thank you, Marrie. Hello, everyone, and thank you for joining our conference call. I will make it short and swift. So we have plenty of time for Q&A with our CEO, Gustavo Mariani, who is here; and our CFO, Nicolas Mindlin, who is here as well.

Let's start with the quarter's figures. It's been another solid quarter for our businesses. Though gas made it to the headlines again as expected. Revenues increased 11% year-on-year and 7% quarter-on-quarter to $621 million, mainly driven by seasonal gas sales, commodity prices, electricity spot prices and Energía Plus. However, the end Loma and Piquirenda PPAs last year mainly offset these increases as well as Loma's gas turbine number 5 of outage and lacked regulated tariffs. 87% of our sales were dollar-linked, the remaining are electricity spot and regulated utilities. Those are in pesos.

The adjusted EBITDA amounted to $246 million, 5% less year-on-year, but similar quarter-on-quarter, basically explained by the same reasons detailed before, plus higher payroll in U.S. terms -- dollar terms. As you can see on the right below, the business share flip, and now oil and gas leads the consolidated adjusted EBITDA, thanks to our gas business, which took almost half of our EBITDA. CapEx in Q3 was 87% higher year-on-year and 27% up quarter-on-quarter, mainly due to the fast pace at our power expansion project, PEPE III and to a lesser extent, the finishing touches in Barragán. E&P remained similar to last year, but it's 27% lower than Q2 as drilling and completion activity slows down during the winter peak.