Pampa Energía Announces Results for the nine-month period and quarter ended on September 30, 2018

BUENOS AIRES, Argentina, Nov. 12, 2018 /PRNewswire/ -- Pampa Energía 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, 2018. All figures are stated in Argentine Pesos and have been prepared in accordance with International Financial Reporting Standards except the application of IAS 29.

Main Results for the Nine-Month Period Ended on September 30, 2018 ('9M18')¹

In order to reflect the financial performance, as from 2018 and for the comparative periods, financial results, selling and administrative expenses, which used to be assigned to holding and others, will be redistributed among power generation, oil and gas and petrochemicals.

Consolidated net revenues of AR$66,028 million², 82% higher than the AR$36,216 million for the same period of 2017 ('9M17'), explained by increases of 110% in power generation, 98% in electricity distribution, 51% in oil and gas, 38% in petrochemicals and 162% in holding and others, partially offset by 21% of higher eliminations due to intersegment sales.

• Power Generation of 11,520 GWh from 12 power plants
• Electricity sales of 16,520 GWh to 3 million end-users
• Production of 45.6 thousand barrels per day of hydrocarbons
• Sales of 267 thousand tons of petrochemical products

Consolidated adjusted EBITDA³ for continuing operations of AR$23,961 million, compared to AR$10,689 million for 9M17, mainly due to increases of AR$5,046 million in power generation, AR$4,524 million in electricity distribution, AR$1,159 million in oil and gas, AR$100 million in refining and distribution, AR$2,488 million in holding and others and lower intersegment eliminations of AR$8 million, partially offset by higher losses of AR$53 million in petrochemicals.

Consolidated loss attributable to the owners of the Company of AR$6,783 million, lower than the AR$3,094 million gain in 9M17, mainly explained by the AR$31,210 million loss accrued due to 121% of AR$ depreciation against US$ in 9M18, currency in which most of the Company's financial liabilities are denominated, whereas the FS reports in AR$, without inflation adjustment.

Main Results for the Third Quarter of 2018 ('Q3 18')⁴

Consolidated net revenues of AR$26,310 million, 96% higher than the AR$13,415 million for the third quarter 2017 ('Q3 17'), explained by increases of 107% in power generation, 108% in electricity distribution, 80% in oil and gas, 52% in petrochemicals and 246% in holding and others, partially offset by 41% of higher eliminations due to intersegment sales.

• Power Generation of 3,572 GWh from 12 power plants
• Electricity sales of 5,626 GWh to 3 million end-users
• Production of 45 thousand barrels per day of hydrocarbons
• Sales of 85 thousand tons of petrochemical products

Consolidated adjusted EBITDA for continuing operations of AR$9,078 million, compared to AR$4,355 million for Q3 17, mainly due to increases of AR$2,101 million in power generation, AR$1,033 million in electricity distribution, AR$567 million in oil and gas, AR$94 million in refining and distribution, AR$1,056 million in holding and others, and lower intersegment eliminations of AR$47 million, partially offset by losses of AR$175 million in petrochemicals.

Consolidated loss attributable to the owners of the Company of AR$7,135 million, lower than the AR$1,284 million gain recorded in Q3 17, mainly explained by the accrual of AR$17,438 million loss due to 43% AR$ depreciation against US$ in Q3 18.

Consolidated Balance Sheet
(As of September 30, 2018 and December 31, 2017, in millions of Argentine Pesos)

Consolidated Income Statement
(For the nine-month period and quarter ended on September 30, 2018 and 2017, in millions of Argentine Pesos)

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

Information about the Conference Call

There will be a conference call to discuss Pampa's Q3 18 results on Tuesday November 13, 2018 at 10:00 a.m. Eastern Standard Time / 12:00 p.m. Buenos Aires Time.

The host will be Lida Wang, Investor Relations Manager at Pampa. For those interested in participating, please dial 0-800-444-2930 in Argentina, +1 (844) 854-4411 in the United States or +1 (412) 317-5481 from any other country. Participants of the conference call should use the identification password 'Pampa Energía' and dial in five minutes before the scheduled time. Please download the Q3 18 Conference Call Presentation from our IR website. There will also be a live audio webcast and presentation of the conference at http://bit.ly/PampaQ318Call.

You may find additional information on the Company at:

• ri.pampaenergia.com/en
• www.cnv.gob.ar
• www.sec.gov

For further information, contact:

Gustavo Mariani
Executive Vice-president

Ricardo Torres
Executive Vice-president

Mariano Batistella
Executive Director of Planning, Strategy & Affiliates

Lida Wang
Investor Relations Officer

The Pampa Energía Building, Maipú 1 (C1084ABA) Ciudad de Buenos Aires, Argentina
Tel: +54 (11) 4344-6000
investor@pampaenergia.com
www.pampaenergia.com/ir

¹ The financial information presented in this document are based on financial statements ('FS') prepared according to the International Financial Reporting Standards ('IFRS'), except application of IAS 29 (please refer to section 1.7 of the Earnings Release). Consequently, the FS discriminates the continuing operations from the assets agreed for sale, which are reported as discontinued operations.

² Under the IFRS, Greenwind, OldelVal, Refinor, Transener and TGS are not consolidated in Pampa's FS, being its equity income shown as 'Results for participation in associates/joint businesses'.

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

⁴ The financial information presented in this document for the quarters ended on September 30, 2018 and of 2017 are based on unaudited FS prepared according to the IFRS accounting standards in force in Argentina, except application of IAS 29 (please refer to section 1.7 of the Earnings Release) corresponding to the nine-month period of 2018 and 2017, and the six-month periods ended on June 30, 2018 and 2017, respectively.

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SOURCE Pampa Energia S.A.