The following is a summary of the Pampa Energia S.A. (PAM) Q1 2024 Earnings Call Transcript:
Financial Performance:
Pampa Energia reported a 31% increase in gas production year-on-year due to the commencement of a new gas pipeline.
The company had to record a $34 million impairment loss on trade receivables due to significant delays in collecting payments from CAMMESA.
Adjusted EBITDA for the quarter was $189 million, an 8% decrease, mainly due to payment issues and a drop in energy spot prices.
Operating costs have reduced owing to increased domestic gas demand.
Capital expenditures saw a 36% YoY reduction, primarily due to strong shale gas activity in the previous year.
Business Progress:
The company continues to enhance its shale gas production, now accounting for 40% of its total output.
Despite a decrease in power generation's adjusted EBITDA, the dispatch saw a 3% YoY increase, helped by the commissioning of PEPE 4.
Progress of PEPE 6 expansion is at 89%, and the wind farm is expected to be fully commissioned by October.
Oil accounted for 6% of Q1's E&P output and generated 16% of the segment's revenue.
Activities in Rincon de Aranda yielded promising results, aligning with the company's strategic focus on shale production.
The company maintains a strong financial position, with no significant debt maturities anticipated until 2027.
Ongoing projects, especially Rincon de Aranda, are expected to boost shale production and the regulatory benefits from the recent omnibus bill are regarded as positive.
The firm plans to maintain high capital expenditure for the development of Rincon de Aranda, alongside efforts to lower shale oil lifting costs.
More details: Pampa Energia IR
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