Pampa Energia Announces Six-Month Period and Second Quarter 2023 Results

BUENOS AIRES, ARGENTINA / ACCESSWIRE / August 9, 2023 / Pampa Energía 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 six-month period and quarter ended on June 30, 2023.

Pampa's financial information adopts US$ as functional currency, which is then translated into AR$ at transactional nominal exchange rate (‘FX'). However, for our affiliates, Transener and TGS, their figures are adjusted for inflation as of June 30, 2023, and then translated into US$ at the period's closing FX. The reported figures in US$ from previous periods remain unchanged.

Second quarter 2023 (‘Q2 23') main results^[1]

Sales amounted to US $464 million^[2], similar to the second quarter 2022 (‘Q2 22'), explained by improved natural gas prices and sold volumes, the incorporation of Engineer Mario Cebreiro Wind Farm (‘PEMC') and Arauco Wind Farm^[3] (‘PEA') and higher sales of reforming volumes, offset by lower petrochemical and crude oil prices and lesser legacy energy income.

Operating performance highlighted by reforming and Ensenada Barragán Thermal Power Plant (‘CTEB')'s Combined Cycle (‘CCGT'):

Pampa's main operational KPIs			Q2 23			Q2 22			Variation
Power	Generation (GWh)		5,218			4,477			+17%
	Gross margin (US$/MWh)		22.6			22.1			+2%
Oil and gas	Production (k boe/day)		67.3			64.6			+4%
	Gas over total production		92%			92%			+0%
	Average gas price (US$/MBTU)		4.7			4.4			+7%
	Average oil price (US$/bbl)		65.1			72.6			-10%
Petrochemicals	Volume sold (k ton)		106			91			+17%
	Average price (US$/ton)		1,240			1,738			-29%

Adjusted EBITDA^[4] reached US $222 million, 13% lower than Q2 22, explained by reductions of 53% in holding and others, 48% in petrochemicals, 4% in oil and gas, and 1% in power generation.

The profit attributable to the Company's shareholders rose 156%, reaching US$166 million, mainly due to gains from holding financial securities and, to a lesser extent, depreciation over the monetary liability net position in AR$, partially offset by increased financial interests due to higher stock of AR$-debt and higher income tax charges.

Net debt continued decreasing, reaching US $787 million, resulting in a net leverage ratio of 1.1x.

[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 CTBSA, Transener and TGS, which at our ownership account for US$97 million. Under IFRS affiliates are not consolidated in Pampa, thus shown as ‘Results for participation in joint businesses and associates'.

[3] PEMC is consolidated since Pampa holds full ownership on August 2022; in process of divestment. PEA was acquired on December 2022.

[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 further information, see section 3.1 of the Earnings Release.

Consolidated balance sheet

(As of June 30, 2023 and December 31, 2022, in millions)

Figures in million		As of 06.30.2023								As of 12.31.2022
		AR$				US$ FX 256.7				AR$				US$ FX 177.16
ASSETS
Property, plant and equipment			585,004				2,279				383,464				2,165
Intangible assets			25,252				98				24,364				138
Right-of-use assets			1,982				8				1,521				9
Deferred tax asset			8,491				33				6,326				36
Investments in joint ventures and associates			240,004				935				159,833				902
Financial assets at amortized cost			25,853				101				18,000				102
Financial assets at fair value through profit and loss			7,053				27				4,867				27
Other assets			121				0				91				1
Trade and other receivables			6,660				26				3,415				19
Total non-current assets			900,420				3,508				601,881				3,397
Inventories			47,714				186				30,724				173
Financial assets at amortized cost			3,006				12				1,357				8
Financial assets at fair value through profit and loss			169,968				662				103,856				586
Derivative financial instruments			146				1				161				1
Trade and other receivables			116,646				454				83,328				470
Cash and cash equivalents			50,749				198				18,757				106
Total current assets			388,229				1,512				238,183				1,344
Assets classified as held for sale			46,631				182				-				-
Total assets			1,335,280				5,202				840,064				4,742
EQUITY
Equity attributable to owners of the company			669,365				2,608				403,463				2,277
Non-controlling interest			1,684				7				1,157				7
Total equity			671,049				2,614				404,620				2,284
LIABILITIES
Provisions			38,250				149				26,062				147
Income tax and presumed minimum income tax liabilities			37,356				146				31,728				179
Deferred tax liabilities			17,596				69				19,854				112
Defined benefit plans			8,362				33				4,908				28
Borrowings			333,830				1,300				237,437				1,340
Trade and other payables			8,485				33				3,757				21
Total non-current liabilities			443,879				1,729				323,746				1,827
Provisions			1,003				4				779				4
Income tax liabilities			4,493				18				927				5
Taxes payables			7,398				29				4,966				28
Defined benefit plans			928				4				1,021				6
Salaries and social security payable			5,404				21				5,627				32
Derivative financial instruments			133				1				318				2
Borrowings			91,688				357				48,329				273
Trade and other payables			74,368				290				49,731				281
Total current liabilities			185,415				722				111,698				630
Liabilities associated to assets classified as held for sale			34,937				136				-				-
Total liabilities			664,231				2,588				435,444				2,458
Total liabilities and equity			1,335,280				5,202				840,064				4,742

Consolidated income statement

(For the six-month periods and quarters ended on June 30, 2023 and 2022, in millions)

	First half												Second quarter
Figures in million	2023						2022						2023						2022
	AR$			US$			AR$			US$			AR$			US$			AR$			US$
Sales revenue		194,256			895			99,523			874			110,341			464			55,512			462
Local market sales		154,309			708			78,708			688			86,900			363			44,999			372
Foreign market sales		39,947			187			20,815			186			23,441			101			10,513			90
Cost of sales		(117,939)			(555)			(60,896)			(540)			(67,401)			(290)			(34,652)			(294)
Gross profit		76,317			340			38,627			334			42,940			174			20,860			168
Selling expenses		(7,723)			(34)			(3,721)			(33)			(4,530)			(18)			(1,658)			(12)
Administrative expenses		(19,564)			(89)			(7,326)			(63)			(11,254)			(48)			(3,797)			(31)
Exploration expenses		(1,750)			(7)			(15)			-			(1,702)			(7)			(7)			-
Other operating income		14,289			61			4,357			36			9,430			45			3,057			25
Other operating expenses		(7,375)			(35)			(2,632)			(23)			(3,530)			(22)			(964)			(8)
Impairment of financial assets		(937)			(3)			(519)			(4)			(646)			(3)			(392)			(3)
Rec. of imp. (impairm.) of int. assets & inventories		(323)			(1)			(4,384)			(35)			(734)			(3)			(4,375)			(35)
Results for part. in joint businesses & associates		8,570			34			6,861			57			5,370			19			4,179			32
Operating income		61,504			266			31,248			269			35,344			137			16,903			136
Financial income		428			2			450			5			235			2			204			2
Financial costs		(41,078)			(188)			(8,794)			(78)			(26,367)			(112)			(4,599)			(39)
Other financial results		55,461			254			(4,170)			(35)			40,818			170			(3,881)			(33)
Financial results, net		14,811			68			(12,514)			(108)			14,686			60			(8,276)			(70)
Profit before tax		76,315			334			18,734			161			50,030			197			8,627			66
Income tax		(7,087)			(29)			(29)			6			(7,730)			(33)			(376)			1
Net income for the period		69,228			305			18,705			167			42,300			164			8,251			67
Attributable to the owners of the Company		69,097			305			18,469			165			42,179			164			8,165			66
Attributable to the non-controlling interests		131			-			236			2			121			0.1			86			1
Net income per share to shareholders		50.36			0.22			13.37			0.12			31.01			0.12			5.92			0.05
Net income per ADR to shareholders		1,259.06			5.56			334.34			2.99			775.35			3.01			147.92			1.20
Average outstanding common shares1		1,372			1,372			1,381			1,381			1,360			1,360			1,380			1,380.0
Outstanding shares by the end of period1		1,360			1,360			1,380			1,380			1,360			1,360			1,380			1,380.0

Note: 1 It considers the shares from the Employee stock-based compensation plan, which as of June 30, 2022 and 2023 amounted to 3.9 million common shares.

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 video conference to discuss Pampa's Q2 23 results on Thursday, August 10, 2023, at 10:00 a.m. Eastern Standard Time/11:00 a.m. Buenos Aires Time. The hosts will be Gustavo Mariani, CEO, Nicolás Mindlin, CFO, and Lida Wang, investor relations and sustainability officer at Pampa.

For those interested in participating, please register at bit.ly/Pampa2Q2023VC. The video conference call will also be simultaneously webcasted at Pampa's website ri.pampaenergia.com/en.

For further information about Pampa:

investor@pampaenergia.com ri.pampaenergia.com/en

www.argentina.gob.ar/cnv www.sec.gov

SOURCE: 1/3 Pampa Energía S.A.

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