Pampa Energía Announces Results for the nine-month period and quarter ended on September 30, 2019
BUENOS AIRES, Argentina, Nov. 11, 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 nine-month period and quarter ended on September 30, 2019.
The Company adopted the US Dollar as functional currency ('FC US$') for the reporting of its financial information, effective as from January 1, 2019. However, the information of the comparative periods is reported in local and constant currency ('L&CC') as of December 31, 2018, which are shown in US$ 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 recorded in local currency and nominal terms ('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 September 30, 2019 and expressed in US$ at closing FX.
Main Results for the Nine-Month Period Ended on September 30, 2019 ('9M19')
Consolidated net revenues of US$2,134 million(1), 6% lower than the US$2,280 million recorded in the same period of 2018 ('9M18'), due to decreases of 7% in electricity distribution, 13% in oil and gas, 6% in petrochemicals, 44% in holding and others, and higher eliminations due to intersegment sales of US$195 million, partially offset by increases of 50% in power generation.
-- Power Generation of 11,777 GWh from 15 power plants(2)
-- Electricity sales of 15,228 GWh to 3.1 million end-users
-- Production of 48.4 thousand barrels per day of hydrocarbons
-- Sales of 253 thousand tons of petrochemical products
Consolidated adjusted EBITDA(3) for continuing operations of US$724 million, 13% lower than the US$828 million for 9M18, mainly due to decreases of 37% in electricity distribution, 29% in oil and gas, 26% in holding and others, and higher intersegment eliminations of US$1 million, partially offset by increases of 24% in power generation and US$13 million in petrochemicals.
Consolidated gain attributable to the owners of the Company of US$683 million, higher than the US$65 million loss in 9M18, 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 of the functional currency, partially offset by decrease at operating margins in electricity distribution and oil and gas.
Main Results for the Third Quarter 2019 ('Q3 19')(4)
Consolidated net revenues of US$579 million, a 30% lower than the US$830 million recorded for the third quarter 2018 ('Q3 18'), explained by decreases of 44% in electricity distribution, 20% in oil and gas, 22% in petrochemicals, 56% in holding and others, and higher eliminations due to intersegment sales for US$71 million, partially offset by a 40% increase in power generation.
-- Power Generation of 4,138 GWh from 15 power plants
-- Electricity sales of 5,362 GWh to 3.1 million end-users
-- Production of 49.8 thousand barrels per day of hydrocarbons
-- Sales of 75 thousand tons of petrochemical products
Consolidated adjusted EBITDA for continuing operations of US$270 million, 15% lower compared to the US$319 million for Q3 18, due to decreases of 11% in electricity distribution, 39% in oil and gas, 46% in holding and others, and higher intersegment eliminations for US$2 million, partially offset by increases of 11% in power generation and US$3 million in petrochemicals.
Consolidated gain attributable to the owners of the Company of US$116 million, US$244 million higher than the loss of US$128 million in Q3 18, mainly due to lower recording of losses from FX difference as explained above.
Consolidated Balance Sheet
(As of September 30, 2019 and December 31, 2018, in millions)
Figures in million FC US$ as of 9.30.2019 L&CC as of 12.31.2018
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AR$
US$ FX 57.59
AR$
US$ FX 37.7
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ASSETS
Property, plant and equipment 195,859 3,401 125,005 3,316
Intangible assets 8,465 147 6,080 161
Deferred tax credits 3,257 57 80 2
Participation in joint businesses and associates 25,591 444 15,333 407
Investments at amortized cost 2,027 35
Financial assets at fair value with changing results 645 11 422 11
Other assets 48 1 33 1
Right-of-use assets 948 16
Trade receivable and other credits 4,260 74 9,521 253
Total non-current assets 241,100 4,186 156,474 4,151
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Inventories 8,655 150 5,169 137
Investments at amortized cost 3,097 54 1,330 35
Financial assets at fair value with changing results 31,263 543 15,273 405
Financial derivatives 739 13 3 0
Trade receivable and other credits 35,341 614 26,489 703
Cash and cash equivalents 2,361 41 9,097 241
Total current assets 81,456 1,414 57,361 1,522
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Total assets 322,556 5,601 213,835 5,672
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EQUITY
Share capital 1,743 30 1,874 50
Adjustment to share capital 9,826 171 9,826 261
Share premium 18,500 321 18,499 491
Repurchased shares 157 3 25 1
Adjustment to share capital in treasury 134 2 134 4
Cost of repurchased shares (6,299) (109) (1,490) (40)
Statutory reserve 1,753 30 904 24
Voluntary reserve 23,489 408 7,355 195
Other reserves (742) (13) (483) (13)
Retained earnings 49,929 867 15,193 403
Other comprehensive result 9,240 160 (314) (8)
Equity attributable to owners of the parent 107,730 1,871 51,523 1,367
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Non-controlling interests 28,254 491 16,160 429
Total equity 135,984 2,361 67,683 1,795
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LIABILITIES
Investments in joint ventures and associates 199 3 153 4
Provisions 9,165 159 5,499 146
Income tax and minimum expected profit tax liability 544 9 1,034 27
Deferred revenues 271 5 275 7
Tax payable 435 8 542 14
Deferred tax liabilities 18,272 317 15,354 407
Defined benefit plan obligations 1,484 26 1,175 31
Salaries and social security payable 232 4 163 4
Borrowings 100,313 1,742 69,189 1,835
Accounts payable and other liabilities 4,526 79 8,162 216
Total non-current liabilities 135,441 2,352 101,546 2,694
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Provisions 1,254 22 871 23
Deferred income 5 0 5 0
Income tax and minimum expected profit tax liability 3,876 67 1,084 29
Tax payable 3,260 57 2,052 54
Defined benefit plan obligations 163 3 162 4
Salaries and social security payable 2,681 47 2,726 72
Financial derivatives 3 0 49 1
Borrowings 13,735 238 12,901 342
Accounts payable and other liabilities 26,154 454 24,756 657
Total current liabilities 51,131 888 44,606 1,183
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Total liabilities 186,572 3,240 146,152 3,877
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Total liabilities and equity 322,556 5,601 213,835 5,672
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Consolidated Income Statement
(For the nine-month period and quarter ended on September 30, 2019 and 2018, in millions)
Nine-Month Period
Third Quarter
Figures in million 2019* 2018** 2019* 2018**
AR$
US$
AR$
US$
AR$
US$
AR$
US$
Sales revenue 110,039 2,134 85,933 2,280 44,500 579 31,270 830
Cost of sales (77,802) (1,481) (55,840) (1,481) (31,010) (371) (19,532) (518)
Gross profit 32,237 653 30,093 799 13,490 208 11,738 312
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Selling expenses (5,785) (104) (4,612) (122) (2,102) (17) (1,935) (51)
Administrative expenses (5,886) (121) (5,513) (146) (2,221) (34) (1,708) (45)
Exploration expenses (155) (4) (12) (0) (84) (2) (7) (0)
Other operating income 1,357 27 6,079 161 407 5 753 20
Other operating expenses (3,189) (64) (5,839) (155) (1,232) (17) (1,098) (29)
Results for participation in joint businesses and associates 3,429 62 505 13 501 (7) (200) (5)
Agreement from regularization of liabilities 15,296 266 2,230 (42)
Operating income 37,304 715 20,701 550 10,989 94 7,543 201
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RECPAM - Results from net monetary position 8,514 148 17,217 457 2,689 11 9,804 260
Financial income 3,659 83 2,356 62 1,260 19 1,043 27
Financial costs (10,669) (219) (8,229) (218) (3,518) (49) (3,501) (93)
Other financial results 1,966 56 (35,687) (948) 1,428 50 (17,751) (472)
Financial results, net 3,470 68 (24,343) (647) 1,859 31 (10,405) (278)
Profit before tax 40,774 783 (3,642) (97) 12,848 125 (2,862) (77)
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Income tax (2,828) 7 841 23 (3,987) (29) 298 9
Net income for continuing operations 37,946 790 (2,801) (74) 8,861 96 (2,564) (68)
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Net income from discontinued operations 3,021 80 (1,104) (29)
Net income for the period 37,946 790 220 6 8,861 96 (3,668) (97)
Attributable to the owners of the Company 31,863 683 (2,468) (65) 8,159 116 (4,860) (128)
Continuing operations 31,863 683 (5,399) (143) 8,159 116 (3,746) (98)
Discontinued operations 2,931 78 (1,114) (30)
Attributable to the non-controlling interests 6,083 107 2,688 71 702 (20) 1,192 31
Net income per share attributable to the owners of the Company 17.4115 0.3732 (1.2414) (0.0327) 4.5957 0.0653 (2.5653) (0.0676)
Basic and diluted income per share of continuing operations 17.4115 0.3732 (2.7158) (0.0718) 4.5957 0.0653 (1.9773) (0.0520)
Basic and diluted income per share of discontinued operations 1.4743 0.0391 (0.5880) (0.0156)
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* FC US$ was adopted on April 1,
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 ('CPB')
and Pampa Cogeneración, among other
subsidiaries. The 9M19 and Q3 19
results are disclosed in AR$
converted 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 9M19 and Q3 19 are adjusted by
average inflation as of September
30, 2019 for approximately 15.9%
and 5.9%, respectively, and the
disclosure in US$ results from
converting by a closing FX of
AR$57.59 per US$.
** Figures for 9M18 and Q3 18 are
recorded in AR$ and adjusted by
inflation as of December 31, 2018
for approximately 27.1% and 18.9%,
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 Q3 19 results on Tuesday, November 12, 2019 at 10:00 a.m. Eastern Standard Time / 12:00 p.m. Buenos Aires Time.
The host will be Lida Wang, Investor Relations Manager at Pampa. For those interested in participating, please connect to http://bit.ly/PampaWebPhone or 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. There will also be a live audio webcast of the conference at http://bit.ly/PampaQ319Call. Please download the Q3 19 Conference Call Presentation from our IR website.
You may find additional information on the Company at:
ri.pampaenergia.com/en www.sec.gov
www.cnv.gov.ar www.bolsar.com
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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) 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'.
(2) Includes the operation of Ensenada Barragán Thermal Power Plant ('CTEB') and Mario Cebreiro Wind Farm ('PEMC'), assets co-controlled by Pampa and of which holds 50% of equity stake.
(3) Consolidated adjusted EBITDA represents the results before 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 September 30, 2019 and of 2018 are based on FS prepared according to IFRS in force in Argentina, corresponding to the nine-month period of 2019 and 2018, and the quarters ended on June 30, 2019 and 2018, respectively.
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SOURCE Pampa Energia S.A.
