Pampa Energia : Energía S.A. announces results for the quarter ended on March 31, 2018

BUENOS AIRES, Argentina, May 11, 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 quarter ended on March 31, 2018. All figures are stated in Argentine Pesos and have been prepared in accordance with International Financial Reporting Standards.

Main Results for the First Quarter 2018 ('Q1 18')¹

In order to objectively report the financial performance of each business segment, as from 2018 and for the comparative periods the corporate expenses (selling and administrative expenses, as well as the financial results), which used to be reported under holding and others, will be redistributed among the operating segments.

Consolidated net revenues of AR$19,401 million², 74% higher than the AR$11,140 million for the first quarter 2017 ('Q1 17'), explained by increases of 109% in power generation, 105% in electricity distribution, 31% in oil and gas, 5% in petrochemicals and 102% in holding and others segment, partially offset by 37% of higher eliminations as a result of intersegment sales %.

• Power Generation of 4,289 GWh from 11 power plants
• Electricity sales of 5,550 GWh to 3 million end-users
• Production of 45.9 thousand barrels per day of hydrocarbons
• Sales of 87 thousand tons of petrochemical products

Consolidated adjusted EBITDA³ for continuing operations of AR$7,704 million, compared to AR$3,071 million for Q1 17, mainly due to increases of AR$1,303 million in power generation, AR$2,149 million in electricity distribution, AR$474 million in oil and gas, AR$55 million in refining and distribution, AR$35 million in petrochemicals and AR$637 million in holding and others segment, partially offset by higher intersegment eliminations of AR$21 million.

Consolidated profit attributable to the owners of the Company of AR$3,013 million, higher than the AR$1,901 million gain in Q1 17, explained by increases of AR$510 million in electricity distribution, AR$609 million in oil and gas, AR$131 million in refining and distribution, and AR$870 million in holding and others, partially offset by lower gains of AR$757 million in power generation, and higher losses of AR$99 million in petrochemicals and AR$152 million in intersegment eliminations.

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

	As of 3.31.18	As of 12.31.17
ASSETS
Participation in joint businesses and associates	6,313	5,754
Property, plant and equipment	42,443	41,214
Intangible assets	1,577	1,586
Other assets	15	2
Financial assets at fair value with changing results	150	150
Deferred tax credits	1,510	1,306
Trade receivable and other credits	6,926	5,042
Total non-current assets	58,934	55,054
Inventories	3,350	2,326
Financial assets at fair value with changing results	15,834	14,613
Investments at amortized cost	415	25
Financial derivatives	11	4
Trade receivable and other credits	23,855	19,145
Cash and cash equivalents	1,255	799
Total current assets	44,720	36,912
Assets classified as held for sale	13,208	12,501
Total assets	116,862	104,467
	As of 3.31.18	As of 12.31.17
EQUITY
Share capital	2,078	2,080
Share premium	5,821	5,818
Repurchased shares	5	3
Cost of repurchased shares	(219)	(72)
Statutory reserve	300	300
Voluntary reserve	5,146	5,146
Other reserves	137	140
Retained earnings	6,219	3,243
Other comprehensive result	460	252
Equity attributable to owners of the parent	19,947	16,910
Non-controlling interests	4,198	3,202
Total equity	24,145	20,112
LIABILITIES
Accounts payable and other liabilities	6,867	6,404
Borrowings	39,868	37,126
Deferred revenues	196	195
Salaries and social security payable	127	120
Defined benefit plan obligations	1,041	992
Deferred tax liabilities	1,762	1,526
Income tax and minimum expected profit tax liability	1,650	863
Tax payable	944	366
Provisions	4,068	4,435
Total non-current liabilities	56,523	52,027
Accounts payable and other liabilities	19,798	18,052
Borrowings	5,826	5,840
Deferred income	3	3
Salaries and social security payable	1,665	2,154
Defined benefit plan obligations	95	121
Income tax and minimum expected profit tax liability	658	943
Tax payable	5,034	1,965
Financial derivatives	-	82
Provisions	584	798
Total current liabilities	33,663	29,958
Liabilities associated to assets classified as held for sale	2,531	2,370
Total liabilities	92,717	84,355
Total liabilities and equity	116,862	104,467

Consolidated Income Statement
(For the quarter ended on March 31, 2018 and 2017, in millions of Argentine Pesos)

		First Quarter
		2018		2017
Sales revenue		19,401		11,140
Cost of sales		(11,655)		(7,408)
Gross profit		7,746		3,732
Selling expenses		(967)		(712)
Administrative expenses		(1,282)		(1,054)
Exploration expenses		(2)		(8)
Other operating income		3,490		1,241
Other operating expenses		(2,614)		(880)
Results for participation in joint businesses and associates		559		294
Operating income		6,930		2,613
Financial income		428		314
Financial costs		(1,435)		(1,267)
Other financial results		(2,026)		618
Financial results, net		(3,033)		(335)
Profit before tax		3,897		2,278
Income tax		(575)		(277)
Net income for continuing operations		3,322		2,001
Net income from discontinued operations		531		294
Net income for the period		3,853		2,295
Attributable to:
Owners of the Company		3,013		1,901
Continuing operations		2,544		1,651
Discontinued operations		469		250
Non-controlling interests		840		394
Net income per share for the period attributable to the owners of the Company		1.4500		0.9809
Basic and diluted income per share of continuing operations		1.2243		0.8292
Basic and diluted income per share of discontinued operations		0.2257		0.1517

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

Information about the Conference Call

There will be a conference call to discuss Pampa's first quarter 2018 results on Tuesday May 15, 2018 at 10:00 a.m. Eastern Standard Time / 11:00 a.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, [phone] in the United States or [phone] 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 Q1 18 Conference Call Presentation from our IR website.

There will also be a live audio webcast and presentation of the conference at www.pampaenergia.com/ir.

You may find additional information on the Company at:

• www.pampaenergia.com/ir
• 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: [phone]
[e-mail]
www.pampaenergia.com/ir 

¹ The financial information presented in this document for the quarters Q1 18 and Q1 17 are based on financial statements ('FS') prepared according to the International Financial Reporting Standards ('IFRS') in force in Argentina, and 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, its equity income being shown as 'Results for participation in associates/joint businesses'. For more information, see section 3 of this Earnings Release.

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 includes adjustments from the IFRS implementation and affiliates' EBITDA at ownership. For more information, see section 3 of this Earnings Release.

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SOURCE Pampa Energia S.A.