Pampa Energía S.A. announces results for the six-month period and quarter ended on June 30, 2018
BUENOS AIRES, Argentina, Aug. 13, 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 six-month period and quarter ended on June 30, 2018. All figures are stated in Argentine Pesos and have been prepared in accordance with International Financial Reporting Standards.
Main Results for the First Semester of 2018 ('1H18')(1)
In order to reflect the financial performance of each business segment, as from 2018 and for the comparative periods, the selling and administrative expenses, as well as the financial results, which used to be assigned to holding and others, will be redistributed among the operating segments.
Consolidated net revenues of AR$39,718 million(2), 74% higher than the AR$22,801 million for the first half of 2017 ('1H17'), explained by increases of 113% in power generation, 91% in electricity distribution, 34% in oil and gas, 30% in petrochemicals and 126% in holding and others segment, partially offset by 9% of higher eliminations as a result of intersegment sales.
-- Power Generation of 7,948 GWh from 12 power plants
-- Electricity sales of 10,894 GWh to 3 million end-users
-- Production of 45.9 thousand barrels per day of hydrocarbons
-- Sales of 182 thousand tons of petrochemical products
Consolidated adjusted EBITDA(3) for continuing operations of AR$14,881 million, compared to AR$6,435 million for 1H17, mainly due to increases of AR$2,945 million in power generation, AR$3,438 million in electricity distribution, AR$592 million in oil and gas, AR$6 million in refining and distribution, AR$79 million in petrochemicals and AR$1,425 million in holding and others segment, partially offset by higher intersegment eliminations of AR$39 million.
Consolidated profit attributable to the owners of the Company of AR$352 million, lower than the AR$1,810 million gain in 1H17, mainly explained by AR$13,772 million losses accrued due to 55%(4) of AR$ depreciation against US$, currency in which most of the Company's financial liabilities are denominated, whereas the FS reports in AR$, without inflation adjustment.
Main Results for the Second Quarter of 2018 ('Q2 18')(5)
Consolidated net revenues of AR$20,317 million, 74% higher than the AR$11,661 million for the second quarter 2017 ('Q2 17'), explained by increases of 116% in power generation, 78% in electricity distribution, 37% in oil and gas, 57% in petrochemicals and 151% in holding and others segment, as well as 5% of lower eliminations as a result of intersegment sales.
-- Power Generation of 3,659 GWh from 12 power plants
-- Electricity sales of 5,344 GWh to 3 million end-users
-- Production of 45.9 thousand barrels per day of hydrocarbons
-- Sales of 95 thousand tons of petrochemical products
Consolidated adjusted EBITDA for continuing operations of AR$7,505 million, compared to AR$3,208 million for Q2 17, mainly due to increases of AR$1,643 million in power generation, AR$1,247 million in electricity distribution, AR$486 million in oil and gas, AR$44 million in petrochemicals and AR$944 million in holding and others segment, partially offset by losses of AR$49 million in refining and distribution, and higher intersegment eliminations of AR$18 million.
Consolidated loss attributable to the owners of the Company of AR$2,661 million, higher than the AR$91 million loss in Q2 17, explained by the accrual of AR$11,367 million losses due to 43%(6) of AR$ depreciation against US$.
Consolidated Balance Sheet
(As of June 30, 2018 and December 31, 2017, in millions of
Argentine Pesos)
In AR$ million As of 6.30.18 As of 12.31.17
-------------- ------------- --------------
ASSETS
Participation
in joint
businesses and
associates 6,589 5,754
Property, plant
and equipment 46,467 41,214
Intangible
assets 1,570 1,586
Other assets 21 2
Financial
assets at fair
value with
changing
results 150 150
Deferred tax
credits 1,892 1,306
Trade
receivable and
other credits 8,274 5,042
Total non-
current assets 64,963 55,054
--------------- ------ ------
Inventories 4,254 2,326
Financial
assets at fair
value with
changing
results 23,089 14,613
Investments at
amortized cost 516 25
Financial
derivatives 4 4
Trade
receivable and
other credits 23,431 19,145
Cash and cash
equivalents 3,223 799
Total current
assets 54,517 36,912
------------- ------ ------
Assets
classified as
held for sale 1,013 12,501
Total assets 120,493 104,467
------------ ------- -------
EQUITY
Share capital 1,948 2,080
Share premium 5,822 5,818
Repurchased
shares 135 3
Cost of
repurchased
shares (6,344) (72)
Statutory
reserve 416 300
Voluntary
reserve 8,412 5,146
Other reserves (363) 140
Retained
earnings 176 3,243
Other
comprehensive
result (198) 252
Equity
attributable
to owners of
the parent 10,004 16,910
------------- ------ ------
Non-
controlling
interests 1,316 3,202
Total equity 11,320 20,112
------------ ------ ------
LIABILITIES
Investments in
joint ventures
and associates 350 -
Accounts
payable and
other
liabilities 6,734 6,404
Borrowings 55,165 37,126
Deferred
revenues 196 195
Salaries and
social
security
payable 136 120
Defined benefit
plan
obligations 1,071 992
Deferred tax
liabilities 465 1,526
Income tax and
minimum
expected
profit tax
liability 925 863
Tax payable 836 366
Provisions 5,386 4,435
Total non-
current
liabilities 71,264 52,027
------------ ------ ------
Accounts
payable and
other
liabilities 23,431 18,052
Borrowings 8,806 5,840
Deferred income 3 3
Salaries and
social
security
payable 1,508 2,154
Defined benefit
plan
obligations 99 121
Income tax and
minimum
expected
profit tax
liability 1,305 943
Tax payable 2,054 1,965
Financial
derivatives 112 82
Provisions 548 798
Total current
liabilities 37,866 29,958
------------- ------ ------
Liabilities
associated to
assets
classified as
held for sale 43 2,370
Total
liabilities 109,173 84,355
------------ ------- ------
Total
liabilities
and equity 120,493 104,467
------------ ------- -------
Consolidated Income Statement
(For the six-month period and quarter ended on June 30, 2018 and 2017, in millions of Argentine Pesos)
First Half Second Quarter
---------- --------------
In AR$ million 2018 2017 2018 2017
-------------- ---- ---- ---- ----
Sales revenue 39,718 22,801 20,317 11,661
Cost of sales (24,494) (15,721) (12,839) (8,313)
Gross profit 15,224 7,080 7,478 3,348
------------ ------ ----- ----- -----
Selling expenses (1,862) (1,410) (895) (698)
Administrative expenses (2,705) (2,088) (1,423) (1,034)
Exploration expenses (4) (13) (2) (5)
Other operating income 3,746 1,844 256 603
Other operating expenses (3,375) (1,260) (863) (535)
Results for participation in joint
businesses and associates 632 568 73 274
Operating income 11,656 4,721 4,624 1,953
---------------- ------ ----- ----- -----
Financial income 956 664 528 350
Financial costs (3,066) (2,410) (1,631) (1,143)
Other financial results (13,341) (705) (11,213) (1,323)
Financial results, net (15,451) (2,451) (12,316) (2,116)
Profit before tax (3,795) 2,270 (7,692) (163)
----------------- ------ ----- ------ ----
Income tax 1,936 (112) 2,511 320
Net income for continuing
operations (1,859) 2,158 (5,181) 157
------------------------- ------ ----- ------ ---
Net income from discontinued
operations 3,069 188 2,538 (106)
Net income for the period 1,210 2,346 (2,643) 51
Attributable to:
Owners of the Company 352 - 1,810 (2,661) (91)
Continuing operations (2,654) 1,637 (5,198) (14)
Discontinued operations 3,006 173 2,537 (77)
Non-controlling interests 858 536 18 142
Net income per share attributable
to the owners of the Company 0.1731 0.9349 (1.3373) (0.0469)
Basic and diluted income per share
of continuing operations (1.3048) 0.8378 (2.6122) (0.0072)
Basic and diluted income per share
of discontinued operations 1.4779 0.0971 1.2749 (0.0397)
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 Q2 18 results on Tuesday, August 14, 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 Q2 18 Conference Call Presentation from our IR website. There will also be a live audio webcast and presentation of the conference at bit.ly/PampaQ218Call.
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') 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, being its equity income being 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 this Earnings Release.
(4) 1H18 nominal exchange rate variation.
(5) The financial information presented in this document for the quarters ended on June 30, 2018 and of 2017 are based on unaudited FS prepared according to the IFRS accounting standards in force in Argentina corresponding to the six-month period of 2018 and 2017, and the quarters ended on March 31, 2018 and 2017, respectively.
(6) Q2 18 nominal exchange rate variation.
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SOURCE Pampa Energia S.A.
