Pampa Energía Announces Results for the fiscal year and quarter ended on December 31, 2019
BUENOS AIRES, March 10, 2020 /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 fiscal year and quarter ended on December 31, 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 this 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 under L&CC, which comparative quarter's figures are shown in L&CC as of December 31, 2019 and expressed in US$ at closing FX.
Main Results for the Fiscal Year 2019
Consolidated net revenues of US$2,836 million(1), 3% lower than the US$2,920 million recorded in the fiscal year 2018, due to decreases of 15% in oil and gas, 5% in petrochemicals, 44% in holding and others, and higher eliminations due to intersegment sales of US$205 million, partially offset by increases of 35% in power generation and 1% in electricity distribution.
-- Power Generation of 15,582 GWh from 15 power plants(2 )
-- Electricity sales of 19,974 GWh to 3.1 million end-users
-- Production of 48.2 thousand barrels of oil equivalent ('boe') per day of
hydrocarbons
-- Sales of 343 thousand tons of petrochemical products
Consolidated adjusted EBITDA(3 )for continuing operations of US$915 million, 9% lower than the US$1,001 million for 2018, mainly due to decreases of 31% in electricity distribution, 34% in oil and gas, and 15% in holding and others, partially offset by increases of 20% in power generation, US$29 million in petrochemicals and higher intersegment eliminations of US$1 million.
Consolidated gain attributable to the owners of the Company of US$692 million, US$468 million higher than the US$224 million gain in 2018, mainly due to the on-time non-cash gain for the settlement of Edenor's regulatory liabilities and lower accrual of losses from FX difference as a result of change to FC US$, partially offset by decrease at operating margins in electricity distribution and oil and gas.
Main Results for the Fourth Quarter 2019 ('Q4 19')(4)
Consolidated net revenues of US$702 million, a 10% higher than the US$640 million recorded for the fourth quarter 2018 ('Q4 18'), explained by increases of 2% in power generation and 37% in electricity distribution, partially offset by decreases of 22% in oil and gas, 2% in petrochemicals, 45% in holding and others, and higher eliminations due to intersegment sales (US$10 million).
-- Power Generation of 3,805 GWh from 15 power plants
-- Electricity sales of 4,745 GWh to 3.1 million end-users
-- Production of 47.7 thousand boe per day of hydrocarbons
-- Sales of 91 thousand tons of petrochemical products
Consolidated adjusted EBITDA for continuing operations of US$170 million, 3% higher compared to the US$165 million reached at Q4 18, due to increases of 9% in power generation, US$8 million in electricity distribution, lower losses of US$18 million in petrochemicals and higher intersegment eliminations for US$2 million, partially offset by decreases of 56% in oil and gas and 11% in holding and others.
Consolidated gain attributable to the owners of the Company of US$9 million, US$280 million lower than the gain of US$289 million in Q4 18, mainly due to lower RECPAM recorded, due to the passive net monetary position allocated to the electricity distribution segment, lower gains from the participation in joint businesses and affiliates, and a higher loss from impairment of fixed assets.
Consolidated Balance Sheet
As of December 31, 2019 and 2018, in millions)
Figures in million FC US$ as of 12.31.2019 L&CC as of 12.31.2018
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AR$
US$ FX 59.89
AR$
US$ FX 37.7
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ASSETS
Property, plant and equipment 210,056 3,507 125,005 3,316
Intangible assets 9,068 151 6,080 161
Right-of-use assets 930 16
Deferred tax assets 1,702 28 80 2
Investments in joint ventures and associates 30,638 511 15,333 407
Financial assets at amortized cost 1,048 18
Financial assets at fair value through profit and loss 671 11 422 11
Other assets 45 1 33 1
Trade and other receivables 4,711 79 9,521 253
Total non-current assets 258,869 4,322 156,474 4,151
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Inventories 9,175 153 5,169 137
Financial assets at amortized cost 3,224 54 1,330 35
Financial assets at fair value through profit and loss 21,867 365 15,273 405
Derivative financial instruments 214 4 3
Trade and other receivables 33,583 561 26,489 703
Cash and cash equivalents 13,496 225 9,097 241
Total current assets 81,559 1,362 57,361 1,521
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Total assets 340,428 5,684 213,835 5,672
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EQUITY
Share capital 1,677 46 1,874 50
Share capital adjustment 9,826 260 9,826 260
Share premium 19,570 510 18,499 491
Treasury shares 71 1 25
Treasury shares adjustment 27 1 134 4
Treasury shares cost (2,527) (44) (1,490) (39)
Legal reserve 1,753 42 904 24
Voluntary reserve 17,727 422 7,355 195
Other reserves (771) (18) (483) (13)
Retained earnings 51,844 726 15,193 403
Other comprehensive income 15,668 (29) (314) (9)
Equity attributable to owners of the parent 114,865 1,917 51,523 1,366
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Non-controlling interest 29,397 492 16,160 429
Total equity 144,262 2,409 67,683 1,795
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LIABILITIES
Investments in joint ventures and associates 265 4 153 4
Provisions 8,703 145 5,499 146
Income tax and minimum notional income tax provision 590 10 1,034 27
Deferred revenue 270 5 275 7
Taxes payables 263 4 542 14
Deferred tax liabilities 22,068 368 15,354 407
Defined benefit plans 1,606 27 1,175 31
Salaries and social security payable 241 4 163 4
Borrowings 105,629 1,764 69,189 1,835
Trade and other payables 5,419 90 8,162 220
Total non-current liabilities 145,054 2,421 101,546 2,695
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Provisions 1,206 20 871 23
Deferred revenue 5 5
Income tax and minimum notional income tax provision 3,154 53 1,084 29
Taxes payables 4,316 72 2,052 54
Defined benefit plans 230 4 162 4
Salaries and social security payable 3,834 65 2,726 72
Derivative financial instruments 204 3 49 1
Borrowings 10,974 183 12,901 342
Trade and other payables 27,189 454 24,756 657
Total current liabilities 51,112 854 44,606 1,182
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Total liabilities 196,166 3,275 146,152 3,877
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Total liabilities and equity 340,428 5,684 213,835 5,672
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Consolidated Income Statement
(For the fiscal year and quarter ended on December 31, 2019 and 2018, in millions)
Fiscal Year Fourth Quarter
Figures in million 2019* 2018** 2019* 2018**
AR$
US$
AR$
US$
AR$
US$
AR$
US$
Sales revenue 154,642 2,836 110,080 2,920 44,603 702 24,147 640
Cost of sales (112,433) (2,032) (74,161) (1,967) (34,631) (551) (18,321) (486)
Gross profit 42,209 804 35,919 953 9,972 151 5,826 154
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Selling expenses (8,645) (148) (6,451) (171) (2,860) (44) (1,839) (49)
Administrative expenses (9,179) (174) (7,751) (206) (3,293) (53) (2,238) (60)
Exploration expenses (463) (9) (45) (1) (308) (5) (33) (1)
Other operating income 2,088 40 6,842 181 731 13 763 20
Other operating expenses (4,617) (86) (7,526) (200) (1,428) (22) (1,687) (45)
Impairment of PPE and intangible assets (3,713) (62) (1,195) (32) (3,713) (62) (1,195) (32)
Results for participation in joint businesses and associates 5,855 101 4,464 118 2,426 39 3,959 105
Results from sale of equity share in companies 1,052 28 1,052 28
Agreement from regularization of liabilities 17,095 285 1,799 19
Operating income 40,630 751 25,309 670 3,326 36 4,608 120
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RECPAM 11,186 187 23,696 629 2,672 39 6,479 172
Financial income 4,483 96 3,751 99 824 13 1,395 37
Financial costs (15,759) (299) (11,944) (316) (5,090) (80) (3,715) (98)
Other financial results 4,891 113 (32,365) (858) 2,925 57 3,322 90
Financial results, net 4,801 97 (16,862) (446) 1,331 29 7,481 201
Profit before tax 45,431 848 8,447 224 4,657 65 12,089 321
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Income tax (6,124) (48) (658) (17) (3,296) (55) (1,499) (40)
Net income for continuing operations 39,307 800 7,789 207 1,361 10 10,590 281
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Net income from discontinued operations 3,019 80 (2) (0)
Net income for the period 39,307 800 10,808 287 1,361 10 10,588 281
Attributable to the owners of the Company 33,012 692 8,435 224 1,149 9 10,903 289
Continuing operations 33,012 692 5,506 146 1,149 9 10,905 289
Discontinued operations 2,929 78 (2) (0)
Attributable to the non-controlling interests 6,295 108 2,373 63 212 1 (315) (8)
Net income per share attributable to the shareholders 18.35 0.38 4.31 0.11 0.68 0.01 5.73 0.15
From continuing operations 18.35 0.38 2.81 0.07 0.68 0.01 5.74 0.15
From discontinued operations 1.50 0.04 (0.00)
Net income per share attributable to the shareholders 458.76 9.62 107.65 2.86 17.00 0.13 143.37 3.80
From continuing operations 458.76 9.62 70.27 1.87 17.00 0.13 143.40 3.80
From discontinued operations 37.38 0.99 (0.03)
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Note: * FC US$ was adopted on April 1, 2019, effective as from January 1, 2019 for Pampa Energía stand-alone and generation subsidiaries Los Nihuiles hydroelectric power plant ('HINISA'), Diamante hydroelectric power plant ('HIDISA') and Piedra Buena thermal power plant ('CPB'), as well as affiliates Greenwind and CTBSA,
among others. The 2019 and Q4 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 2019 and Q4 19 are adjusted by average inflation as of December 31, 2019 for
approximately 21.2% and 5.5%, respectively, and the disclosure in US$ results from converting by a closing FX of AR$59.89 per US$.
** Figures for 2018 and Q4 18 are recorded in AR$ and adjusted by inflation as of December 31, 2018 for approximately 19.2% and 5.4%, 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 Q4 19 results on Wednesday March 11, 2020 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 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/PampaQ419Call. Please download the Q4 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'), the affiliates Greenwind, OldelVal, Refinor, CTBSA, 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, 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 December 31, 2019 and of 2018 are based on FS prepared according to IFRS in force in Argentina, corresponding to the fiscal years of 2019 and 2018, and the nine-month periods ended on September 30, 2019 and 2018, respectively.
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SOURCE Pampa Energia S.A.
