Pampa Energía announces results for the six-month period and quarter ended on June 30, 2020 - Pampa Energia (NYSE:PAM)

BUENOS AIRES, Argentina, Aug. 11, 2020 /PRNewswire/ -- Pampa Energía S.A. PAMPAMP)), 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 EBITDA⁴ of 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)

Figures in million	As of 6.30.2020		As of 12.31.2019
Figures 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 associates	37,340	530	30,638	512
Financial assets at amortized cost	-	-	1,048	17
Financial assets at fair value through profit and loss	789	11	671	11
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 through profit and loss	4,232	60	21,867	365
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 associates	222	3	265	4
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 payable	309	4	241	4
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 payable	3,208	46	3,834	64
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, in millions)

	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 shareholders	0.62	0.01	12.79	0.31	0.14	0.00	9.40	0.22
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.cnv.gov.ar

www.sec.gov

www.bolsar.com

For more information, contact:
Gustavo Mariani
CEO

Gabriel Cohen
CFO

Lida Wang
Investor relations and sustainability officer

The Pampa Energía Building, Maipú 1 (C1084ABA) City of Buenos Aires, Argentina
Tel: +54 (11) 4344-6000
investor@pampaenergia.com
ri.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 Barragán 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.

SOURCE Pampa Energia S.A.

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