PR Newswire | Nov 11, 2020 04:52PM EST

September 30, 2020

11/11 15:51 CST

Pampa Energa announces results for the nine-month period and quarter ended on September 30, 2020 BUENOS AIRES, Nov. 11, 2020

BUENOS AIRES, Nov. 11, 2020 /PRNewswire/ -- Pampa Energa S.A. (NYSE: PAM; Buenos Aires Stock Exchange: PAMP), the largest independent energy integrated company in Argentina, with active participation in the country's electricity and gas value chain, announces the results for the nine-month period and quarter ended on September 30, 2020.

As from January 1, 2019, the Company adopted US$ as functional currency for the reporting of its financial information. The presentation of this information in AR$ is converted at transactional nominal exchange rate ('FX').

However, Edenor (electricity distribution), OldelVal (oil and gas), Transener, TGS and Refinor (holding and others) continue recording their operations in local currency. Thus, the 2020 figures are adjusted by inflation as of September 30, 2020 (9M20: 10.0% and Q3 20: 3.7%), translated to US$ at closing FX of 76.18. Moreover, the 2019 figures are adjusted by inflation as of September 30, 2019 (9M19: 15.9% and Q3 19: 5.9%), translated to US$ at closing FX of 57.59[1].

Main highlights from the 9M20 results

Consolidated net revenues of US$1,651 million[2], 23% lower than the US$2,137 million recorded in 9M19, mainly due to tariff freeze in the regulated businesses, lower gas sales for own power generation, fall on prices and volumes of hydrocarbons and petrochemicals products, and lower remuneration for spot energy, partially offset by the commissioning of new power generation units priced under PPA.

* Power Generation of 12,069 GWh from 15 power plants[3] * Electricity sales of 15,427 GWh to 3.1 million end-users * Production of 45.5 thousand boe per day of hydrocarbons * Sales of 230 thousand tons of petrochemical products

Consolidated adjusted EBITDA[4]of US$583 million, 20% lower than the US$731 million in 9M19, due to decreases of 55% in electricity distribution and 53% in oil and gas, partially offset by increases of 7% in petrochemicals, 4% in power generation and 1% in holding and others.

Consolidated gain attributable to the owners of the Company of US$96 million, 86% lower than the US$683 million profit achieved in 9M19, mainly due to the one-off non-cash profit from the settlement of Edenor's regulatory liabilities in 9M19, in addition to lower operating margin, lesser RECPAM recorded due to the lower passive net monetary position allocated to the electricity distribution segment, plus impairment of accrued assets and an income tax charge in 9M20.

Main highlights from the Q3 20 results[5]

Consolidated net revenues of US$592 million, 2% higher than the US$581 million recorded in Q3 19, mainly due to the commissioning of the new combined cycle gas turbine Genelba Plus and the strong devaluation in Q3 19 which implied a dilution of sales in Edenor, partially offset by reductions on fuel sales for own thermal power dispatch, lower prices and volumes of hydrocarbons sold, and lower prices and dispatch at spot energy.

* Power Generation of 4,000 GWh from 15 power plants * Electricity sales of 5,434 GWh to 3.1 million end-users * Production of 46.8 thousand boe per day of hydrocarbons * Sales of 90 thousand tons of petrochemical products

Consolidated adjusted EBITDA of US$234 million, 3% lower than the US$242 million in Q3 19, due to decreases of 38% in electricity distribution and 31% in oil and gas, partially offset by increases of US$19 million in holding and others, US$4 million in petrochemicals and US$1 million in power generation.

Consolidated gain attributable to the owners of the Company of US$78 million, 33% lower than the US$116 million gain recorded in Q3 19, mainly explained by the financial effect from the Agreement for the Regularization and Settlement of Receivables with the WEM executed in Q3 19 and lower operating margin in oil and gas, partially offset by higher profit in our equity income.

Consolidated Balance Sheet

(As of September 30, 2020 and December 31, 2019, in millions)

As of 9.30.2020 As of 12.31.2019Figures in million AR$ US$ FX 76.18 AR$ US$ FX 59.89

ASSETS

Property, plant and equipment 256,828 3,371 210,056 3,507

Intangible assets 10,494 138 9,068 151

Right-of-use assets 1,092 14 930 16

Deferred tax assets 8,142 107 1,702 28

Investments in joint ventures and 41,801 549 30,638 512associates

Financial assets at amortized cost 7,624 100 1,048 17

Financial assets at fair value 853 11 671 11through profit and loss

Other assets 53 1 45 1

Trade and other receivables 4,497 59 4,711 79

Total non-current assets 331,384 4,350 258,869 4,322

Inventories 10,244 134 9,175 153

Financial assets at amortized cost 2,759 36 3,224 54

Financial assets at fair value 11,170 147 21,867 365through profit and loss

Derivative financial instruments - - 214 4

Trade and other receivables 42,188 554 33,583 561

Cash and cash equivalents 24,625 323 13,496 225

Total current assets 90,986 1,194 81,559 1,362

Total assets 422,370 5,544 340,428 5,684

EQUITY

Total equity 178,771 2,347 144,262 2,409

LIABILITIES

Investments in joint ventures and 184 2 265 4associates

Provisions 10,767 141 8,703 145

Income tax liabilities 8,776 115 590 10

Deferred revenue 1,487 20 270 5

Taxes payables 128 2 263 4

Deferred tax liabilities 26,751 351 22,068 368

Defined benefit plans 2,395 31 1,606 27

Salaries and social security 340 4 241 4payable

Borrowings 110,582 1,452 105,629 1,764

Trade and other payables 7,471 98 5,419 90

Total non-current liabilities 168,881 2,217 145,054 2,422

Provisions 1,639 22 1,206 20

Deferred revenue 32 0 5 0

Income tax liabilities 1,405 18 3,154 53

Taxes payables 4,595 60 4,316 72

Defined benefit plans 243 3 230 4

Salaries and social security 3,714 49 3,834 64payable

Derivative financial instruments 22 0 204 3

Borrowings 20,612 271 10,974 183

Trade and other payables 42,456 557 27,189 454

Total current liabilities 74,718 981 51,112 853

Total liabilities 243,599 3,198 196,166 3,275

Total liabilities and equity 422,370 5,544 340,428 5,684

Consolidated Income Statement

(For the nine-month period and quarter ended on September 30, 2020 and 2019, inmillions)

Nine-month period Third quarter

Figures in 2020 2019 2020 2019million

AR$ US$ AR$ US$ AR$ US$ AR$ US$

Sales revenue 119,493 1,651 110,198 2,137 47,705 592 44,606 581

Cost of sales (87,675) (1,208) (77,931) (1,484) (33,549) (410) (31,061) (372)

Gross profit 31,818 443 32,267 653 14,156 182 13,545 209

Selling (9,556) (129) (5,785) (104) (4,062) (50) (2,141) (18)expenses

Administrative (7,950) (112) (5,757) (118) (2,885) (36) (2,132) (32)expenses

Exploration (21) - (155) (4) (12) - (84) (2)expenses

Other operating 4,163 58 3,932 85 1,706 21 1,398 18income

Other operating (3,059) (43) (3,189) (64) (977) (12) (1,232) (17)expenses

Results forpart. in joint 4,809 66 3,429 62 1,652 20 501 (7)businesses andassociates

Impairment ofPPE and (4,316) (67) - - - - - -inventory

Agreement fromregularization - - 15,296 266 - - 2,230 (42)of liabilities

Operating 15,888 216 40,038 776 9,578 125 12,085 109income

RECPAM 5,997 79 8,514 148 2,738 33 2,689 11

Financial 545 8 925 22 238 4 164 4income

Financial costs (14,019) (198) (10,669) (219) (5,728) (74) (3,518) (49)

Other financial 1,764 27 1,966 56 1,331 18 1,428 50results

Financial (5,713) (84) 736 7 (1,421) (19) 763 16results, net

Profit before 10,175 132 40,774 783 8,157 106 12,848 125tax

Income tax (3,944) (49) (2,828) 7 (1,987) (28) (3,987) (29)

Net income(loss) for the 6,231 83 37,946 790 6,170 78 8,861 96period

Attributable tothe owners of 7,156 96 31,863 683 6,161 78 8,159 116the Company

Attributable tothe (925) (13) 6,083 107 9 - 702 (20)non-controllinginterests

Net income pershareattributable to 4.56 0.06 17.43 0.37 4.08 0.05 4.59 0.07theshareholders

Net income perADRattributable to 113.90 1.53 435.76 9.34 101.99 1.29 114.75 1.63theshareholders

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

Information about the videoconference

There will be a videoconference to discuss Pampa's Q3 20 results on Thursday November 12, 2020 at 10:00 a.m. Eastern Standard Time/12:00 a.m. Buenos Aires Time.

The hosts will be Gustavo Mariani, CEO, Gabriel Cohen, CFO and Lida Wang, investor relations and sustainability officer at Pampa.

For those interested in participating, please register at bit.ly/Pampa3Q20VideoCall. The videoconference call will also be simultaneously webcasted at Pampa's website ri.pampaenergia.com/en.

You may find additional information on the Company at:

? ri.pampaenergia.com/en ? www.sec.gov

? www.cnv.gov.ar ? www.bolsar.com

For more information, contact:Gustavo MarianiCEO

Gabriel CohenCFO

Lida WangInvestor relations and sustainability officer

The Pampa Energa Building, Maip 1 (C1084ABA) City of Buenos Aires, ArgentinaTel: +54 (11) 4344-6000investor@pampaenergia.comri.pampaenergia.com/en

[1] For further information, see section 3 of Pampa's financial statements ('FS').

[2] Under International Financial Reporting Standards ('IFRS'), sales at our ownership from the affiliates Greenwind, OldelVal, Refinor, CTBSA, Transener and TGS are not consolidated in Pampa, being its equity income shown as 'Results for participation in joint businesses and associates' (9M20: US$305 million and Q3 20: US$97 million).

[3] Includes 100% of Ensenada Barragn Thermal Power Plant ('CTEB') and Mario Cebreiro Wind Farm ('PEMC'), assets operated by Pampa but co-controlled by Pampa, with 50% of equity stake.

[4] Consolidated adjusted EBITDA represents the results before financial results, income tax, depreciations and amortizations, extraordinary and non-cash income and expense, equity income and other adjustments from the IFRS implementation, and includes affiliates' EBITDA at our ownership. For more information, see section 3 of the Earnings Release.

[5] The financial information presented in this document for Q3 20 and Q3 19 quarters are based on FS prepared according to IFRS in force in Argentina, corresponding to the nine-month period of 2020 and 2019, and the quarters ended June 30, 2020 and 2019, respectively.

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SOURCE Pampa Energia S.A.