Pampa Energía announces results for the six-month period and quarter ended on June 30, 2020
BUENOS AIRES, Argentina, Aug. 11, 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 six-month period and quarter ended on June 30, 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 (electricity distribution), OldelVal (oil and gas), Transener, TGS and Refinor (holding and others) continue recording their operations in local currency. Thus, the 2020 figures are adjusted by inflation as of June 30, 2020 (1H 20: 6.4% and Q2 20: 2.6%), translated to US$ at closing FX of 70.46. Moreover, the 2019 figures are adjusted by inflation as of June 30, 2019 (1H 19: 10.1% and Q2 19: 4.5%), translated to US$ at closing FX of 42.46(1).
Main highlights from the 1H 20 results
Consolidated net revenues of US$1,059 million(2), 30% lower than the US$1,516 million recorded in 1H 19, mainly due to unadjusted tariffs at regulated businesses, the termination of fuel self-procurement for power sold to CAMMESA as from January 2020, and lower prices and volumes sold in oil and gas, partially offset by new power generation units priced under PPAs.
-- Power Generation of 8,070 GWh from 15 power plants(3)
-- Electricity sales of 9,994 GWh to 3.1 million end-users
-- Production of 44.9 thousand boe per day of hydrocarbons
-- Sales of 139 thousand tons of petrochemical products
Consolidated adjusted EBITDA(4) of US$341 million, 30% lower than the US$484 million in 1H 19, due to decreases of 69% in electricity distribution, 65% in oil and gas, 60% in petrochemicals and 23% in holding and others, partially offset by 6% increase at power generation and lower intersegment eliminations for US$1 million.
Consolidated gain attributable to the owners of the Company of US$18 million, 97% lower than the US$567 million gain achieved in 1H 19, mainly due to the extraordinary non-cash profit from the settlement of Edenor's regulatory liabilities in 1H 19, in addition to lower operating margins in oil and gas and regulated businesses, lesser RECPAM recorded due to the lower passive net monetary position allocated to the electricity distribution segment, an income tax charge and impairment of accrued assets in 1H 20.
Main highlights from the Q2 20 results(5)
Consolidated net revenues of US$450 million, 43% lower than the US$788 million recorded in Q2 19, mainly due to unadjusted tariffs at regulated businesses, the termination of fuel self-procurement for power sold to CAMMESA as from January 2020, and lower prices and volumes sold in oil and gas, partially offset by new power generation units priced under PPAs.
-- Power Generation of 3,461 GWh from 15 power plants
-- Electricity sales of 4,791 GWh to 3.1 million end-users
-- Production of 43.7 thousand boe per day of hydrocarbons
-- Sales of 52 thousand tons of petrochemical products
Consolidated adjusted EBITDA of US$120 million, 56% lower than the US$271 million in Q2 19, due to decreases of 5% in power generation, US$86 million in electricity distribution, 88% in oil and gas, and 35% in holding and others, partially offset by a 33% increase at petrochemicals and lower intersegment eliminations for US$1 million.
Consolidated gain attributable to the owners of the Company of US$4 million, 99% lower than the US$400 million gain in Q2 19, mainly due to Edenor's extraordinary non-cash profit in Q2 19, in addition to lower operating margins in oil and gas and regulated businesses, and lesser RECPAM recorded due to the lower passive net monetary position allocated to the electricity distribution segment and income tax charge.
Consolidated Balance Sheet
(As of June 30, 2020 and December 31, 2019, in millions)
Figures in million As of 6.30.2020 As of 12.31.2019
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AR$
US$ FX 70.46
AR$
US$ FX 59.89
ASSETS
Property, plant and
equipment 239,109 3,394 210,056 3,507
Intangible assets 9,812 139 9,068 151
Right-of-use assets 998 14 930 16
Deferred tax assets 6,095 87 1,702 28
Investments in joint
ventures and associates 37,340 530 30,638 512
Financial assets at
amortized cost 1,048 17
Financial assets at fair
value through profit and
loss 789 11 671 11
Other assets 54 1 45 1
Trade and other
receivables 5,301 75 4,711 79
Total non-current assets 299,498 4,251 258,869 4,322
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Inventories 9,218 131 9,175 153
Financial assets at
amortized cost 3,350 48 3,224 54
Financial assets at fair
value through profit and
loss 4,232 60 21,867 365
Derivative financial
instruments 214 4
Trade and other
receivables 33,284 472 33,583 561
Cash and cash equivalents 29,151 414 13,496 225
Total current assets 79,235 1,125 81,559 1,362
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Total assets 378,733 5,375 340,428 5,684
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EQUITY
Total equity 162,126 2,301 144,262 2,409
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LIABILITIES
Investments in joint
ventures and associates 222 3 265 4
Provisions 10,038 142 8,703 145
Income tax provision 6,035 86 590 10
Deferred revenue 1,200 17 270 5
Taxes payables 128 2 263 4
Deferred tax liabilities 24,482 347 22,068 368
Defined benefit plans 2,133 30 1,606 27
Salaries and social
security payable 309 4 241 4
Borrowings 107,469 1,525 105,629 1,764
Trade and other payables 7,202 102 5,419 90
Total non-current
liabilities 159,218 2,260 145,054 2,422
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Provisions 1,437 20 1,206 20
Deferred revenue 32 0 5 0
Income tax provision 1,833 26 3,154 53
Taxes payables 3,798 54 4,316 72
Defined benefit plans 238 3 230 4
Salaries and social
security payable 3,208 46 3,834 64
Derivative financial
instruments 47 1 204 3
Borrowings 15,302 217 10,974 183
Trade and other payables 31,494 447 27,189 454
Total current liabilities 57,389 814 51,112 853
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Total liabilities 216,607 3,074 196,166 3,275
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Total liabilities and
equity 378,733 5,375 340,428 5,684
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Consolidated Income Statement
(For the six-month period and quarter ended on June 30, 2020 and 2019, in millions)
First half Second quarter
Figures in million 2020 2019 2020 2019
AR$
US$
AR$
US$
AR$
US$
AR$
US$
Sales revenue 71,788 1,059 63,932 1,516 33,251 450 34,505 788
Cost of sales (53,952) (795) (45,131) (1,070) (26,396) (359) (23,862) (547)
Gross profit 17,836 264 18,801 446 6,855 91 10,643 241
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Selling expenses (5,494) (79) (3,644) (86) (3,166) (43) (1,831) (43)
Administrative expenses (5,239) (79) (3,704) (88) (2,815) (40) (1,841) (43)
Exploration expenses (9) (71) (2) (5) (30) (1)
Other operating income 889 13 896 21 407 6 446 8
Other operating expenses (2,082) (31) (1,957) (47) (1,260) (17) (940) (22)
Results for part. in joint businesses and associates 3,157 46 2,928 69 1,088 14 2,093 49
Impairment of PPE and inventory (4,316) (67)
Agreement from regularization of liabilities 13,066 308 13,066 308
Operating income 4,742 67 26,315 621 1,104 11 21,606 497
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RECPAM 3,259 46 5,825 137 1,583 20 2,517 61
Financial income 1,875 28 2,399 64 868 12 1,101 31
Financial costs (8,291) (124) (7,151) (170) (4,430) (62) (3,540) (82)
Other financial results 433 9 538 6 1,547 24 1,033 12
Financial results, net (2,724) (41) 1,611 37 (432) (6) 1,111 22
Profit before tax 2,018 26 27,926 658 672 5 22,717 519
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Income tax (1,957) (21) 1,159 36 (1,554) (16) (268) 6
Net income (loss) for the period 61 5 29,085 694 (882) (11) 22,449 525
Attributable to the owners of the Company 995 18 23,704 567 220 4 17,173 400
Attributable to the non-controlling interests (934) (13) 5,381 127 (1,102) (15) 5,276 125
Net income per share attributable to the shareholders 0.62 0.01 12.79 0.31 0.14 0.00 9.40 0.22
Net income per ADR attributable to the shareholders 15.54 0.28 319.69 7.65 3.50 0.06 234.88 5.47
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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 Q2 20 results on Wednesday August 12, 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 officer at Pampa.
For those interested in participating, please register at bit.ly/Pampa2Q20VideoCall. 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 more information, contact:
Gustavo Mariani
CEO
Gabriel Cohen
CFO
Lida Wang
Investor relations and sustainability 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) For further information, see section 3 of Pampa's financial statements ('FS').
(2) Under International Financial Reporting Standards ('IFRS'), 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' (1H 20: US$208 million and Q2 20: US$94 million).
(3) 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.
(4) 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.
(5) The financial information presented in this document for Q2 20 and Q2 19 quarters are based on FS prepared according to IFRS in force in Argentina, corresponding to the six-month period of 2020 and 2019, and the quarters ended March 31, 2020 and 2019, respectively.
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SOURCE Pampa Energia S.A.
