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

Pampa 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 million(2), 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 EBITDA(3) 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                  19,947                 16,910
    owners of the parent
    --------------------


    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, +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 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: +54 (11) 4344-6000
investor@pampaenergia.com
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.