Pampa Energía S.A. (NYSE:PAM) Q2 2022 Earnings Conference Call August 12, 2022 10:00 AM ET

Company Participants

Margarita Chun – Investor Relations

Lida Wang – Investor Relations and Sustainability Officer

Gustavo Mariani – Vice President and Chief Executive Officer

Nicolás Mindlin – Executive Director-Finances

Conference Call Participants

Rodrigo Nistor – AR Partners

Margarita Chun

Thank you for joining our conference. We inform you that this event is being recorded. All participants will be in listen-only mode during the presentation. After the company's remarks, there will be a Q&A session. Questions can only be submitted in writing through Zoom. Should any participant need assistance, please send us a chat message.

Before proceeding, please read the disclaimer that is located in 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 related to future events that may or may not occur in the future. Investors should understand that general economic 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 will turn the video conference over to Lida Wang, our Investor Relations and Sustainability Officer of Pampa Energía. Please go ahead.

Lida Wang

Thank you, Margarita. Thank you, Margarita, and everyone [Technical Difficulty] all right, let's do it again. Thank you Marie, and everyone for joining our conference call. It's been a great quarter, but in interest of time, I will make it short and sweet. So we have plenty of time for Q&A with our CEO, Gustavo Mariani. Gustavo? Yes, you're in listen-only mode.

Gustavo Mariani

Gustavo Mariani here; our CFO, Nicolás Mindlin is here and they are waiting for you with the Q&A. So let's start with the quarter's figures. Revenues increased 28% year-on-year to $587 million driven by rising gas output, commodity prices, B2B Energía plus sales and higher legacy energy and regulated prices. However, lower income from Loma, Barragán and Piquirenda offset this increases because its PPA's expire. As a result around 85% of our sales were dollar linked.

The adjusted EBITDA amounted to $253 million, 6% up year-on-year, and 13% up quarter-on-quarter, explained by the same reasons detailed before, and better operating margin offset by increased cost on maintenance and contractors for an intense E&P activity and higher peso-linked expenses because inflation is outpacing devaluation. Quarter-on-quarter seasonality explains the boost in the EBITDA. As you can see on the right below oil and gas led the consolidated adjusted EBITDA for the first time in a long time, thanks to our gas business taking 59%. CapEx in Q2 was 49% up year-on-year and 30% up quarter-on-quarter. This is mainly due to the growing plan gas commitment and power expansions at PEPE III and Barragán.