PR Newswire | Aug 11, 2020 05:04PM EDT

June 30, 2020

08/11 16:03 CDT

Pampa Energa announces results for the six-month period and quarter ended on June 30, 2020 BUENOS AIRES, Argentina, Aug. 11, 2020

BUENOS AIRES, Argentina, Aug. 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 six-month period and quarter ended on June 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 June 30, 2020 (1H 20: 6.4% and Q2 20: 2.6%), translated to US$ at closing FX of 70.46. Moreover, the 2019 figures are adjusted by inflation as of June 30, 2019 (1H 19: 10.1% and Q2 19: 4.5%), translated to US$ at closing FX of 42.461.

Main highlights from the 1H 20 results

Consolidated net revenues of US$1,059 million2, 30% lower than the US$1,516 million recorded in 1H 19, mainly due to unadjusted tariffs at regulated businesses, the termination of fuel self-procurement for power sold to CAMMESA as from January 2020, and lower prices and volumes sold in oil and gas, partially offset by new power generation units priced under PPAs.

* Power Generation of 8,070 GWh from 15 power plants3 * Electricity sales of 9,994 GWh to 3.1 million end-users * Production of 44.9 thousand boe per day of hydrocarbons * Sales of 139 thousand tons of petrochemical products

Consolidated adjusted EBITDA4of US$341 million, 30% lower than the US$484 million in 1H 19, due to decreases of 69% in electricity distribution, 65% in oil and gas, 60% in petrochemicals and 23% in holding and others, partially offset by 6% increase at power generation and lower intersegment eliminations for US$1 million.

Consolidated gain attributable to the owners of the Company of US$18 million, 97% lower than the US$567 million gain achieved in 1H 19, mainly due to the extraordinary non-cash profit from the settlement of Edenor's regulatory liabilities in 1H 19, in addition to lower operating margins in oil and gas and regulated businesses, lesser RECPAM recorded due to the lower passive net monetary position allocated to the electricity distribution segment, an income tax charge and impairment of accrued assets in 1H 20.

Main highlights from the Q2 20 results5

Consolidated net revenues of US$450 million, 43% lower than the US$788 million recorded in Q2 19, mainly due to unadjusted tariffs at regulated businesses, the termination of fuel self-procurement for power sold to CAMMESA as from January 2020, and lower prices and volumes sold in oil and gas, partially offset by new power generation units priced under PPAs.

* Power Generation of 3,461 GWh from 15 power plants * Electricity sales of 4,791 GWh to 3.1 million end-users * Production of 43.7 thousand boe per day of hydrocarbons * Sales of 52 thousand tons of petrochemical products

Consolidated adjusted EBITDA of US$120 million, 56% lower than the US$271 million in Q2 19, due to decreases of 5% in power generation, US$86 million in electricity distribution, 88% in oil and gas, and 35% in holding and others, partially offset by a 33% increase at petrochemicals and lower intersegment eliminations for US$1 million.

Consolidated gain attributable to the owners of the Company of US$4 million, 99% lower than the US$400 million gain in Q2 19, mainly due to Edenor's extraordinary non-cash profit in Q2 19, in addition to lower operating margins in oil and gas and regulated businesses, and lesser RECPAM recorded due to the lower passive net monetary position allocated to the electricity distribution segment and income tax charge.

Consolidated Balance Sheet

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

As of 6.30.2020 As of 12.31.2019Figures in million AR$ US$ FX 70.46 AR$ US$ FX 59.89

ASSETS

Property, plant and equipment 239,109 3,394 210,056 3,507

Intangible assets 9,812 139 9,068 151

Right-of-use assets 998 14 930 16

Deferred tax assets 6,095 87 1,702 28

Investments in joint ventures and 37,340 530 30,638 512associates

Financial assets at amortized cost - - 1,048 17

Financial assets at fair value 789 11 671 11through profit and loss

Other assets 54 1 45 1

Trade and other receivables 5,301 75 4,711 79

Total non-current assets 299,498 4,251 258,869 4,322

Inventories 9,218 131 9,175 153

Financial assets at amortized cost 3,350 48 3,224 54

Financial assets at fair value 4,232 60 21,867 365through profit and loss

Derivative financial instruments - - 214 4

Trade and other receivables 33,284 472 33,583 561

Cash and cash equivalents 29,151 414 13,496 225

Total current assets 79,235 1,125 81,559 1,362

Total assets 378,733 5,375 340,428 5,684

EQUITY

Total equity 162,126 2,301 144,262 2,409

LIABILITIES

Investments in joint ventures and 222 3 265 4associates

Provisions 10,038 142 8,703 145

Income tax provision 6,035 86 590 10

Deferred revenue 1,200 17 270 5

Taxes payables 128 2 263 4

Deferred tax liabilities 24,482 347 22,068 368

Defined benefit plans 2,133 30 1,606 27

Salaries and social security 309 4 241 4payable

Borrowings 107,469 1,525 105,629 1,764

Trade and other payables 7,202 102 5,419 90

Total non-current liabilities 159,218 2,260 145,054 2,422

Provisions 1,437 20 1,206 20

Deferred revenue 32 0 5 0

Income tax provision 1,833 26 3,154 53

Taxes payables 3,798 54 4,316 72

Defined benefit plans 238 3 230 4

Salaries and social security 3,208 46 3,834 64payable

Derivative financial instruments 47 1 204 3

Borrowings 15,302 217 10,974 183

Trade and other payables 31,494 447 27,189 454

Total current liabilities 57,389 814 51,112 853

Total liabilities 216,607 3,074 196,166 3,275

Total liabilities and equity 378,733 5,375 340,428 5,684

Consolidated Income Statement

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

First half Second quarter

Figures in million 2020 2019 2020 2019

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

Sales revenue 71,788 1,059 63,932 1,516 33,251 450 34,505 788

Cost of sales (53,952) (795) (45,131) (1,070) (26,396) (359) (23,862) (547)

Gross profit 17,836 264 18,801 446 6,855 91 10,643 241

Selling expenses (5,494) (79) (3,644) (86) (3,166) (43) (1,831) (43)

Administrative expenses (5,239) (79) (3,704) (88) (2,815) (40) (1,841) (43)

Exploration expenses (9) - (71) (2) (5) - (30) (1)

Other operating income 889 13 896 21 407 6 446 8

Other operating expenses (2,082) (31) (1,957) (47) (1,260) (17) (940) (22)

Results for part. in joint businesses and associates 3,157 46 2,928 69 1,088 14 2,093 49

Impairment of PPE and inventory (4,316) (67) - - - - - -

Agreement from regularization of liabilities - - 13,066 308 - - 13,066 308

Operating income 4,742 67 26,315 621 1,104 11 21,606 497

RECPAM 3,259 46 5,825 137 1,583 20 2,517 61

Financial income 1,875 28 2,399 64 868 12 1,101 31

Financial costs (8,291) (124) (7,151) (170) (4,430) (62) (3,540) (82)

Other financial results 433 9 538 6 1,547 24 1,033 12

Financial results, net (2,724) (41) 1,611 37 (432) (6) 1,111 22

Profit before tax 2,018 26 27,926 658 672 5 22,717 519

Income tax (1,957) (21) 1,159 36 (1,554) (16) (268) 6

Net income (loss) for the period 61 5 29,085 694 (882) (11) 22,449 525

Attributable to the owners of the Company 995 18 23,704 567 220 4 17,173 400

Attributable to the non-controlling interests (934) (13) 5,381 127 (1,102) (15) 5,276 125

Net income per share attributable to the 0.62 0.01 12.79 0.31 0.14 0.00 9.40 0.22shareholders

Net income per ADR attributable to the shareholders 15.54 0.28 319.69 7.65 3.50 0.06 234.88 5.47

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 Q2 20 results on Wednesday August 12, 2020 at 10:00 a.m. Eastern Standard Time/11:00 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/Pampa2Q20VideoCall. 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' (1H 20: US$208 million and Q2 20: US$94 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 Q2 20 and Q2 19 quarters are based on FS prepared according to IFRS in force in Argentina, corresponding to the six-month period of 2020 and 2019, and the quarters ended March 31, 2020 and 2019, respectively.

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SOURCE Pampa Energia S.A.