Pampa Energía Announces Results for the fiscal year and quarter ended on December 31, 2019

News provided by

Pampa Energia S.A.

Mar 10, 2020, 18:05 ET

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 million1, 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 plants2
  • 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 EBITDA3 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

AR$

US$ FX 59.89

AR$

US$ FX 37.7

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

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







Total assets

340,428

5,684

213,835

5,672







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

Non-controlling interest

29,397

492

16,160

429

Total equity

144,262

2,409

67,683

1,795







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

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







Total liabilities

196,166

3,275

146,152

3,877







Total liabilities and equity

340,428

5,684

213,835

5,672







        

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













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













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













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













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)

-

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:

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
[email protected] 
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.

SOURCE Pampa Energia S.A.

Related Links

http://www.pampaenergia.com

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