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 million1, 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 plants2
- 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 EBITDA3 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 |
||||
AR$ |
US$ FX 57.59 |
AR$ |
US$ FX 37.7 |
|||
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 |
||
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 |
||
Total assets |
322,556 |
5,601 |
213,835 |
5,672 |
||
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 |
||
Non-controlling interests |
28,254 |
491 |
16,160 |
429 |
||
Total equity |
135,984 |
2,361 |
67,683 |
1,795 |
||
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 |
||
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 |
||
Total liabilities |
186,572 |
3,240 |
146,152 |
3,877 |
||
Total liabilities and equity |
322,556 |
5,601 |
213,835 |
5,672 |
||
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 |
||||
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 |
||||
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) |
||||
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) |
||||
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) |
||||
* 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:
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'), 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.
SOURCE Pampa Energia S.A.
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