PR Newswire | Nov 10, 2021 04:20PM EST

high gas production

11/10 15:20 CST

Pampa Energa announces solid third quarter 2021 results coupled with record high gas production BUENOS AIRES, Argentina, Nov. 10, 2021

BUENOS AIRES, Argentina, Nov. 10, 2021 /PRNewswire/ -- Pampa Energa S.A. (NYSE: PAM; Buenos Aires Stock Exchange: PAMP), an independent company with active participation in Argentina's electricity and gas value chain, announces the results for the nine-month period and quarter ended on September 30, 2021.

Pampa's financial information adopts US$ as functional currency, and it's expressed in AR$ at the transactional nominal exchange rate ('FX'). However, our affiliates Transener, TGS and Refinor report under local currency. Hence, their figures are adjusted by inflation as of September 30, 2021, except for previous periods already reported.

Main results from the quarter[1]

49% year-on-year increase in sales, recording US$435 million[2]in the third quarter 2021 ('Q3 21'), explained by the rise in prices of oil, gas and petrochemical products, increased physical volume sold in all our businesses and higher sales of own fuel to thermal power plants.

Pampa's main operational KPIs Q3 21 Q3 20 Variation

Power Generation (GWh) 4,512 4,000 +13%

Gross margin (US$/MWh) 31.0 40.3 -23%

Hydrocarbon Production (k boe/day) 57.4 46.8 +23%

Gas over total production 92% 91% +0%

Average gas price (US$/MBTU) 4.4 2.5 +76%

Average oil price (US$/bbl) 61.6 40.4 +52%

Petrochemicals Volume sold (k ton) 129 90 +43%

Average price (US$/ton) 1,123 748 +50%

27% year-on-year increase in the adjusted EBITDA[3], recording US$262 million in Q3 21, explained by an increase of US$68 million in oil and gas, offset by decreases of US$6 million in power generation and US$6 million in holding and others.

Pampa recorded a consolidated profit attributable to the Company's shareholders of US$131 million, US$53 million higher than the third quarter 2020 ('Q3 20'), mainly due to better operating margin in oil and gas, offset by higher losses from the holding of financial securities and the own debt buyback profit recorded in Q3 20.

Consolidated net debt decreased to US$917 million as of September 30, 2021, recording a continuous and significant reduction (mainly AR$-nominated maturities) compared to the US$1,148 million recorded by the end of 2020.

Consolidated balance sheet(As of September 30, 2021 and December 31, 2020, in millions)

As of 9.30.2021 As of 12.31.2020Figures in million AR$ US$ FX 98.74 AR$ US$ FX 84.15

ASSETS

Property, plant and equipment 159,563 1,616 135,445 1,610

Intangible assets 3,814 39 3,455 41

Right-of-use assets 1,440 15 867 10

Deferred tax assets 6,874 70 9,082 108

Investments in joint ventures and 70,500 714 46,229 549associates

Financial assets at amortized cost 9,906 100 8,428 100

Financial assets at fair value 4,780 48 942 11through profit and loss

Other assets 61 1 57 1

Trade and other receivables 2,599 26 3,631 43

Total non-current assets 259,537 2,628 208,136 2,473

Inventories 14,175 144 9,766 116

Financial assets at amortized cost - - 2,062 25

Financial assets at fair value 32,940 334 27,382 325through profit and loss

Derivative financial instruments 1 0 1 -

Trade and other receivables 47,840 485 28,678 341

Cash and cash equivalents 17,117 173 11,900 141

Total current assets 112,073 1,135 79,789 948

Assets classified as held for sale - - 123,603 1,469

Total assets 371,610 3,764 411,528 4,890

EQUITY

Equity attributable to owners of 169,789 1,720 120,247 1,428the company

Non-controlling interest 675 7 28,631 341

Total equity 170,464 1,726 148,878 1,769

LIABILITIES

Investments in joint ventures and 378 4 161 2associates

Provisions 13,921 141 9,326 111

Income tax liabilities 18,855 191 11,004 131

Taxes payables 151 2 128 2

Deferred tax liabilities - - 93 1

Defined benefit plans 2,165 22 1,460 17

Borrowings 134,564 1,363 115,428 1,372

Other payables 1,289 13 1,418 16

Total non-current liabilities 171,323 1,735 139,018 1,652

Provisions 546 6 1,379 16

Income tax liabilities 498 5 897 11

Taxes payables 3,947 40 3,030 36

Defined benefit plans 298 3 298 4

Salaries and social security 2,099 21 1,935 23payable

Derivative financial instruments 16 0 40 -

Borrowings 6,041 61 20,377 242

Trade and other payables 16,378 166 9,778 116

Total current liabilities 29,823 302 37,734 448

Liabilities associated to assets - - 85,898 1,021classified as held for sale

Total liabilities 201,146 2,037 262,650 3,121

Total liabilities and equity 371,610 3,764 411,528 4,890

Consolidated income statement(For the nine-month periods and quarters ended on September 30, 2021 and 2020, in millions)

Nine-month period Third quarter

Figures in 2021 2020 2021 2020million

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

Sales revenue 103,740 1,102 53,669 787 42,529 435 21,515 291

Cost of sales (62,652) (666) (32,369) (482) (27,309) (280) (12,060) (164)

Gross profit 41,088 436 21,300 305 15,220 155 9,455 127

Selling (1,752) (18) (1,356) (20) (669) (6) (356) (4)expenses

Administrative (6,301) (67) (4,848) (71) (2,258) (23) (1,674) (22)expenses

Exploration (50) - (21) - (6) - (12) -expenses

Other operating 8,864 92 2,506 37 4,018 42 1,245 17income

Other operating (4,623) (50) (1,781) (26) (792) (8) (505) (7)expenses

Impairment offinancial (229) (3) (851) (13) (33) (1) (863) (13)assets

Impairment ofPPE, intangible (172) (2) (4,316) (67) - - - -assets andinventories

Results forpart. in joint 8,131 85 4,810 66 5,030 51 1,652 20businesses andassociates

Operating 44,956 473 15,443 211 20,510 210 8,942 118income

Financial 619 7 529 8 282 4 234 4income

Financial costs (14,128) (151) (8,598) (127) (6,287) (65) (3,250) (45)

Other financial 2,813 29 3,353 48 (118) - 1,593 20results

Financial (10,696) (115) (4,716) (71) (6,123) (61) (1,423) (21)results, net

Profit before 34,260 358 10,727 140 14,387 149 7,519 97tax

Income tax (7,786) (83) (2,731) (34) (1,680) (19) (1,332) (20)

Net income forcontinuing 26,474 275 7,996 106 12,707 130 6,187 77operations

Net income(loss) from (7,129) (75) (1,765) (23) - - (17) 1discontinuedoperations

Net income(loss) for the 19,345 200 6,231 83 12,707 130 6,170 78period

Attributable tothe owners of 22,577 234 7,156 96 12,804 131 6,161 78the Company

Continuing 26,303 273 8,101 108 12,804 131 6,159 77operations

Discontinued (3,726) (39) (945) (12) - - 2 1operations

Attributable tothe (3,232) (34) (925) (13) (97) (1) 9 -non-controllinginterests

Net income(loss) pershare 16.11 0.17 4.56 0.06 9.23 0.09 4.08 0.05attributable toshareholders

From continuing 18.76 0.19 5.16 0.07 9.23 0.09 4.08 0.05operations

Fromdiscontinued (2.66) (0.03) (0.60) (0.01) - - 0.00 0.00operations

Net income(loss) per ADR 402.65 4.18 113.90 1.53 230.69 2.36 101.99 1.29attributable toshareholders

From continuing 469.10 4.87 128.94 1.72 230.69 2.36 101.96 1.28operations

Fromdiscontinued (66.45) (0.70) (15.04) (0.19) - - 0.03 0.02operations

Averageoutstanding 1,401.8 1,570.7 1,387.6 1,510.2common shares

Outstandingcommon shares 1,386.4 1,479.0 1,386.4 1,479.0by the end ofperiod

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 21 results on Thursday, November 11, 2021, at 10:00 a.m. Eastern Standard Time/12:00 p.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/Pampa3Q21VC. The videoconference call will also be simultaneously webcasted at Pampa's website ri.pampaenergia.com/en.

For further information about Pampa

investor@pampaenergia.com www.argentina.gob.ar/cnv

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

[1] The information is based on financial statements ('FS') prepared according to International Financial Reporting Standards ('IFRS') in force in Argentina. Only continuing operations are considered.

[2] It does not include sales from the affiliates Greenwind, OldelVal, Refinor, CTBSA, Transener and TGS, which at our ownership account for US$115 million. Under IFRS they are not consolidated in Pampa, thus shown as 'Results for participation in joint businesses and associates'.

[3] 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 further information, see section 3 of the Earnings Release.

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SOURCE Pampa Energia S.A.