Pampa Energía Announces Results For The Quarter Ended On March 31, 2020
BUENOS AIRES, Argentina, May 12, 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 quarter ended on March 31, 2020.
As from January 1, 2019, the Company adopted US$ as functional currency for the reporting of its financial information. The presentation of this information in AR$ is converted at transactional nominal exchange rate ('FX').
However, Edenor (distribution segment), OldelVal (oil and gas segment), Transener, TGS and Refinor (holding and others segment) continue recording their operations under local currency. Thus, the first quarter 2020 ('Q1 20') figures are adjusted as of March 31, 2020 by a 3.8% inflation rate, translated to US$ at closing FX of 64.47. For the comparative period of the first quarter 2019 ('Q1 19'), figures remain adjusted as of March 31, 2019 by an inflation rate of 5.6%, and translated to US$ at closing FX of 43.35(1).
Main Highlights from the Q1 20 Results(2)
Consolidated net revenues of US$607 million(3), 17% lower than the US$727 million recorded in Q1 19, due to decreases of 35% in power generation, 18% in electricity distribution, 25% in oil and gas, 5% in petrochemicals, 14% in holding and others, and lower eliminations from intersegment sales (US$56 million).
-- Power Generation of 4,608 GWh from 15 power plants(4)
-- Electricity sales of 5,203 GWh to 3.1 million end-users
-- Production of 46 thousand boe per day of hydrocarbons
-- Sales of 87 thousand tons of petrochemical products
Consolidated adjusted EBITDA(5) of US$221 million, 5% higher than the US$210 million for Q1 19, mainly due to increases of 18% in power generation and 74% in electricity distribution, partially offset by decreases of 38% in oil and gas, 10% in holding and others, and US$4 million losses in petrochemicals.
Consolidated gain attributable to the owners of the Company of US$14 million, 92% lower than the US$167 million gain in Q1 19, mainly due to the recording of a loss from impairment of assets (US$67 million), lesser results from net monetary position ('RECPAM') recorded due to the lower passive net monetary position allocated to the electricity distribution segment (US$50 million) and higher income taxes charges (US$35 million).
Consolidated Balance Sheet
(As of March 31, 2020 and December 31, 2019, in millions)
Figures in million As of 3.31.2020 As of 12.31.2019
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AR$
US$ FX 64.47
AR$
US$ FX 59.89
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ASSETS
Property, plant and equipment 222,220 3,447 210,056 3,507
Intangible assets 9,250 143 9,068 151
Right-of-use assets 963 15 930 16
Deferred tax assets 3,512 54 1,702 28
Investments in joint ventures and associates 35,074 544 30,638 511
Financial assets at amortized cost 302 5 1,048 18
Financial assets at fair value through profit and loss 722 11 671 11
Other assets 48 1 45 1
Trade and other receivables 4,989 77 4,711 79
Total non-current assets 277,080 4,298 258,869 4,322
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Inventories 8,922 138 9,175 153
Financial assets at amortized cost 3,473 54 3,224 54
Financial assets at fair value through profit and loss 15,767 245 21,867 365
Derivative financial instruments 214 4
Trade and other receivables 37,959 589 33,583 561
Cash and cash equivalents 12,783 198 13,496 225
Total current assets 78,904 1,224 81,559 1,362
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Total assets 355,984 5,522 340,428 5,684
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EQUITY
Total equity 153,807 2,386 144,262 2,409
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LIABILITIES
Investments in joint ventures and associates 291 5 265 4
Provisions 9,138 142 8,703 145
Income tax and minimum notional income tax provision 2,677 42 590 10
Deferred revenue 269 4 270 5
Taxes payables 207 3 263 4
Deferred tax liabilities 23,180 360 22,068 368
Defined benefit plans 1,869 29 1,606 27
Salaries and social security payable 274 4 241 4
Borrowings 109,540 1,699 105,629 1,764
Trade and other payables 6,771 105 5,419 90
Total non-current liabilities 154,216 2,392 145,054 2,421
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Provisions 1,317 20 1,206 20
Deferred revenue 5 0 5
Income tax and minimum notional income tax provision 3,236 50 3,154 53
Taxes payables 3,575 55 4,316 72
Defined benefit plans 235 4 230 4
Salaries and social security payable 3,127 49 3,834 65
Derivative financial instruments 254 4 204 3
Borrowings 6,204 96 10,974 183
Trade and other payables 30,008 465 27,189 454
Total current liabilities 47,961 744 51,112 854
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Total liabilities 202,177 3,136 196,166 3,275
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Total liabilities and equity 355,984 5,522 340,428 5,684
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Consolidated Income Statement
(For the quarters ended on March 31, 2020 and 2019, in millions)
First Quarter
Figures in million 2020 2019
AR$
US$
AR$
US$
Sales revenue 38,415 607 29,393 727
Cost of sales (27,556) (436) (21,269) (523)
Gross profit 10,859 171 8,124 204
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Selling expenses (2,328) (36) (1,813) (43)
Administrative expenses (2,424) (39) (1,863) (45)
Exploration expenses (4) (41) (1)
Other operating income 604 9 484 14
Other operating expenses (822) (14) (1,017) (25)
Results for participation in joint businesses and associates 2,069 32 835 20
Impairment of PPE and inventory (4,316) (67)
Operating income 3,638 56 4,709 124
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RECPAM 1,676 26 3,308 76
Financial income 1,007 16 1,298 33
Financial costs (3,861) (62) (3,611) (88)
Other financial results (1,114) (15) (495) (6)
Financial results, net (2,292) (35) 500 15
Profit before tax 1,346 21 5,209 139
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Income tax (403) (5) 1,427 30
Net income for the period 943 16 6,636 169
Attributable to the owners of the Company 775 14 6,531 167
Attributable to the non-controlling interests 168 2 105 2
Net income per share attributable to the shareholders 0.47 0.01 3.48 0.09
Net income per share attributable to the shareholders 11.81 0.21 87.08 2.23
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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 videoconference to discuss Pampa's Q1 20 results on Wednesday May 13, 2020 at 10:00 a.m. Eastern Standard Time / 11:00 a.m. Buenos Aires Time.
The hosts will be Gustavo Mariani, CEO, Gabriel Cohen, CFO and Lida Wang, Investor Relations and Sustainability Manager at Pampa.
For those interested in participating, please register at bit.ly/PampaQ120VideoCall. The videoconference call will also be simultaneously webcasted at Pampa's website ri.pampaenergia.com/en.
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 and Sustainability
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) For further information, see section 3 of Pampa's financial statements ('FS').
(2) The financial information presented in this document for the quarters Q1 20 and Q1 19 are based on FS prepared according to International Financial Reporting Standards ('IFRS') in force in Argentina.
(3) Under the IFRS, US$114 million sales at our ownership from the affiliates Greenwind, OldelVal, Refinor, CTBSA, Transener and TGS are not consolidated in Pampa, being its equity income shown as 'Results for participation in joint businesses and associates'.
(4) Includes 100% of Ensenada Barragán Thermal Power Plant ('CTEB') and Mario Cebreiro Wind Farm ('PEMC'), assets operated by Pampa but co-controlled by Pampa, with 50% of equity stake.
(5) 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.
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SOURCE Pampa Energia S.A.
