Pampa Energía Announces Results for the six-month period and quarter ended on June 30, 2019
BUENOS AIRES, Argentina, Aug. 12, 2019 /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, 2019.
As from April 1, 2019, the Company adopted the US Dollar as functional currency ('FC US$') for the reporting of its financial information, effective as from January 1, 2019.
However, the information related to the comparative periods are reported in local and constant currency ('L&CC') as of December 31, 2018, which are shown in US$ converted by closing nominal exchange rate ('FX'). Moreover, Edenor, Transener, OldelVal, Refinor and TGS continue recording their operations under L&CC, therefore their figures are adjusted by inflation. For further information, see section 2 of the Earnings Release or footnote 3 of Pampa's financial statements ('FS').
For the convenience of the reader, it is shown as supplementary information for each segment's quarterly comparative period the figures in historical terms recorded in local currency ('L&NC') expressed in US$ at average FX, except for the distribution segment and subsidiaries subject to L&CC, which comparative quarter's figures are shown in L&CC as of June 30, 2019 and expressed in US$ at closing FX.
Main Results for the First Semester of 2019 ('1H 19')(1)
Consolidated net revenues of US$1,515 million(2), 4% higher than the US$1,450 million recorded in the first semester of 2018 ('1H 18'), explained by increases of 56% in power generation, 8% in electricity distribution and 3% in petrochemicals, partially offset by decreases of 8% in oil and gas, and 38% in holding and others, in addition to higher eliminations due to intersegment sales of US$124 million.
-- Power Generation of 7,640 GWh from 15 power plants
-- Electricity sales of 9,866 GWh to 3.1 million end-users
-- Production of 47.7 thousand barrels per day of hydrocarbons
-- Sales of 178 thousand tons of petrochemical products
Consolidated adjusted EBITDA(3)( )for continuing operations of US$484 million, 6% lower compared to the US$514 million for 1H 18, mainly due to decreases of 39% in electricity distribution, 22% in oil and gas and 2% in holding and others, partially offset by increases of 36% in power generation, US$10 million in petrochemicals and lower intersegment eliminations of US$1 million.
Consolidated gain attributable to the owners of the Company of US$567 million, higher than the US$63 million gain in 1H 18, includes an extraordinary non-cash gain for the settlement of Edenor's regulatory liabilities and lower accrual of losses from FX difference as a result of change in the reporting methodology, partially offset by decrease at operating margins in electricity distribution and oil and gas segments.
Main Results for the Second Quarter 2019 ('Q2 19')(4)
Consolidated net revenues of US$808 million, 13% higher than the US$715 million recorded for the second quarter 2018 ('Q2 18'), explained by increases of 46% in power generation and 30% in electricity distribution, partially offset by decreases of 10% in oil and gas and 63% in holding and others, in addition to higher eliminations due to intersegment sales of US$63 million. Petrochemicals remained unchanged.
-- Power Generation of 3,727 GWh from 15 power plants
-- Electricity sales of 4,849 GWh to 3.1 million end-users
-- Production of 48.5 thousand barrels per day of hydrocarbons
-- Sales of 95 thousand tons of petrochemical products
Consolidated adjusted EBITDA for continuing operations of US$266 million, 21% higher compared to the US$219 million for Q2 18, mainly due to increases of 56% in power generation, 27% in electricity distribution and US$9 million in petrochemicals, partially offset by decreases of 15% in oil and gas and 10% in holding and others.
Consolidated gain attributable to the owners of the Company of US$394 million, US$466 million higher than the gain recorded in Q2 18, includes an extraordinary non-cash gain of Edenor and lower accrual of losses from FX difference, both effects explained above.
Consolidated Balance Sheet
(As of June 30, 2019 and December 31, 2018, in millions)
Figures in million FC US$ as of 6.30.2019 L&CC as of 12.31.2018
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AR$
US$ FX 42.46
AR$
US$ FX 37.7
ASSETS
Property, plant and
equipment 154,620 3,642 125,005 3,316
Intangible assets 7,025 165 6,080 161
Deferred tax credits 3,319 78 80 2
Participation in joint
businesses and
associates 21,741 512 15,333 407
Financial assets at
fair value with
changing results 458 11 422 11
Other assets 35 1 33 1
Right-of-use assets 289 7
Trade receivable and
other credits 8,910 210 9,521 253
Total non-current
assets 196,397 4,625 156,474 4,151
---
Inventories 7,036 166 5,169 137
Investments at
amortized cost 1,330 35
Financial assets at
fair value with
changing results 10,596 250 15,273 405
Financial derivatives 7 0 3 0
Trade receivable and
other credits 31,725 747 26,489 703
Cash and cash
equivalents 8,527 201 9,097 241
Total current assets 57,891 1,363 57,361 1,522
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Total assets 254,288 5,989 213,835 5,672
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EQUITY
Share capital 1,815 43 1,874 50
Adjustment to share
capital 9,826 231 9,826 261
Share premium 18,500 436 18,499 491
Repurchased shares 85 2 25 1
Adjustment to share
capital in treasury 134 3 134 4
Cost of repurchased
shares (3,876) (91) (1,490) (40)
Statutory reserve 1,753 41 904 24
Voluntary reserve 23,489 553 7,355 195
Other reserves (720) (17) (483) (13)
Retained earnings 25,304 596 15,193 403
Other comprehensive
result 6,338 149 (314) (8)
Equity attributable to
owners of the parent 82,648 1,946 51,523 1,367
---
Non-controlling
interests 24,779 584 16,160 429
Total equity 107,427 2,530 67,683 1,795
---
LIABILITIES
Investments in joint
ventures and
associates 199 5 153 4
Provisions 7,073 167 5,499 146
Income tax and minimum
expected profit tax
liability 503 12 1,034 27
Deferred revenues 273 6 275 7
Tax payable 586 14 542 14
Deferred tax
liabilities 14,970 353 15,354 407
Defined benefit plan
obligations 1,380 33 1,175 31
Salaries and social
security payable 198 5 163 4
Borrowings 71,165 1,676 69,189 1,835
Accounts payable and
other liabilities 3,878 91 8,162 216
Total non-current
liabilities 100,225 2,360 101,546 2,694
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Provisions 1,212 29 871 23
Deferred income 5 0 5 0
Income tax and minimum
expected profit tax
liability 3,004 71 1,084 29
Tax payable 2,637 62 2,052 54
Defined benefit plan
obligations 161 4 162 4
Salaries and social
security payable 2,053 48 2,726 72
Financial derivatives 6 0 49 1
Borrowings 13,651 322 12,901 342
Accounts payable and
other liabilities 23,907 563 24,756 657
Total current
liabilities 46,636 1,098 44,606 1,183
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Total liabilities 146,861 3,459 146,152 3,877
---
Total liabilities and
equity 254,288 5,989 213,835 5,672
---
Consolidated Income Statement
(For the six-month period and quarter ended on June 30, 2019 and 2018, in millions)
First Half
Second Quarter
Figures in million 2019* 2018** 2019* 2018**
AR$
US$
AR$
US$
AR$
US$
AR$
US$
Sales revenue 63,878 1,515 54,663 1,450 34,485 808 26,940 715
Cost of sales (45,131) (1,070) (36,308) (963) (23,860) (567) (18,786) (498)
Gross profit 18,747 445 18,355 487 10,625 241 8,154 216
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Selling expenses (3,644) (86) (2,677) (71) (1,831) (43) (1,243) (33)
Administrative expenses (3,704) (88) (3,805) (101) (1,842) (43) (1,932) (51)
Exploration expenses (71) (2) (5) (0) (30) (1) (2) (0)
Other operating income 950 22 5,326 141 467 8 340 9
Other operating expenses (1,957) (47) (4,741) (126) (940) (22) (1,266) (34)
Results for participation in joint
businesses and associates 2,928 69 705 19 2,090 43 (54) (1)
Agreement from regularization of
liabilities 13,066 308 13,066 308
Operating income 26,315 621 13,158 349 21,605 491 3,997 106
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RECPAM -Results from net monetary
position 5,825 137 7,413 197 2,517 61 3,825 101
Financial income 2,399 64 1,313 35 1,101 31 701 19
Financial costs (7,151) (170) (4,728) (125) (3,540) (82) (2,322) (62)
Other financial results 538 6 (17,936) (476) 1,033 12 (14,878) (395)
Financial results, net 1,611 37 (13,938) (370) 1,111 22 (12,674) (336)
Profit before tax 27,926 658 (780) (21) 22,716 513 (8,677) (230)
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Income tax 1,159 36 543 14 (197) 6 2,858 76
Net income for continuing operations 29,085 694 (237) (6) 22,519 519 (5,819) (154)
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Net income from discontinued
operations 4,125 109 3,366 89
Net income for the period 29,085 694 3,888 103 22,519 519 (2,453) (65)
Attributable to the owners of the
Company 23,704 567 2,392 63 17,236 394 (2,695) (71)
Continuing operations 23,704 567 (1,653) (44) 17,236 394 (6,031) (160)
Discontinued operations 4,045 107 3,336 88
Attributable to the non-controlling
interests 5,381 127 1,496 40 5,283 125 242 6
Net income per share attributable to
the owners of the Company 12.7853 0.3058 1.1759 0.0311 9.4518 0.2159 (1.3536) (0.0360)
Basic and diluted income per share of
continuing operations 12.7853 0.3058 (0.8126) (0.0216) 9.4518 0.2159 (3.0293) (0.0804)
Basic and diluted income per share of
discontinued operations 1.9885 0.0527 1.6757 0.0444
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* FC US$ was adopted on April1, 2019, effective as from January 1, 2019 for Pampa Energía stand-alone and generation subsidiaries Greenwind, Los Nihuiles hydroelectric power plant ('HINISA'), Diamante hydroelectric power plant ('HIDISA'), Piedra Buena thermal
power plant and Pampa Cogeneración, among other subsidiaries. The 1H 19 and Q2 19 results in AR$ are disclosed at transactional FX.
L&CC applies as from July 1, 2018 retrospectively and prospectively for subsidiaries Edenor (electricity distribution segment), OldeVal (oil and gas segment), Refinor, TGS and Transener (holding and others segment). Figures in AR$ for 1H 19 and Q2 19 are adjusted
by inflation as of June 30, 2019 for approximately 10.1% and 4.5%, respectively, and the disclosure in US$ results from converting by a closing FX of AR$42.46 per US$.
** Figures for 1H 18 and Q2 18 are recorded in AR$ and adjusted by inflation as of December 31, 2018 for approximately 36.7% and 32.6%, respectively, and shown in US$ at a closing FX of AR$37.70 per US$.
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 Q2 19 results on Tuesday August 13, 2019 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 +54 (11) 3984-5677 in Argentina, +1 (844) 717-6837 in the United States or +1 (412) 317-6394 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 19 Conference Call Presentation from our IR website. There will also be a live audio webcast and presentation of the conference at http://bit.ly/PampaQ219Call.
You may find additional information on the Company at:
-- ri.pampaenergia.com/en
-- www.cnv.gov.ar
-- www.sec.gov
-- www.bolsar.com
For further information, contact:
Gustavo Mariani
Chief Executive Officer - CEO
Ricardo Torres
Executive Vice-president
Mariano Batistella
Executive Director of Planning, Strategy, Downstream & Affiliates
Lida Wang
Investor Relations Officer
The Pampa Energía Building, Maipú 1 (C1084ABA) City of Buenos Aires, Argentina
Tel: +54 (11) 4344-6000
investor@pampaenergia.com
ri.pampaenergia.com/en
(1) The businesses under FC US$ use the corresponding period's average FX, whereas the figures adjusted by inflation are converted into US$ by applying the closing FX.
(2) Under the International Financial Reporting Standards ('IFRS'), Greenwind, OldelVal, Refinor, Pampa Cogeneración, 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, extraordinary and non-cash income and expense, equity income and other adjustments from the IFRS implementation, and includes affiliates' EBITDA at our ownership. For more information, see section 3 of the Earnings Release.
(4) The financial information presented in this document for the quarters ended on June 30, 2019 and of 2018 are based on FS prepared according to IFRS in force in Argentina, corresponding to the six-month period of 2019 and 2018, and the quarters ended on March 31, 2019 and 2018, respectively.
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SOURCE Pampa Energia S.A.
