Pampa Energía announces results for the nine-month period and quarter ended on September 30, 2020
BUENOS AIRES, Nov. 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 nine-month period and quarter ended on September 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 September 30, 2020 (9M20: 10.0% and Q3 20: 3.7%), translated to US$ at closing FX of 76.18. Moreover, the 2019 figures are adjusted by inflation as of September 30, 2019 (9M19: 15.9% and Q3 19: 5.9%), translated to US$ at closing FX of 57.59[1].
Main highlights from the 9M20 results
Consolidated net revenues of US$1,651 million[2], 23% lower than the US$2,137 million recorded in 9M19, mainly due to tariff freeze in the regulated businesses, lower gas sales for own power generation, fall on prices and volumes of hydrocarbons and petrochemicals products, and lower remuneration for spot energy, partially offset by the commissioning of new power generation units priced under PPA.
- Power Generation of 12,069 GWh from 15 power plants[3]
- Electricity sales of 15,427 GWh to 3.1 million end-users
- Production of 45.5 thousand boe per day of hydrocarbons
- Sales of 230 thousand tons of petrochemical products
Consolidated adjusted EBITDA[4] of US$583 million, 20% lower than the US$731 million in 9M19, due to decreases of 55% in electricity distribution and 53% in oil and gas, partially offset by increases of 7% in petrochemicals, 4% in power generation and 1% in holding and others.
Consolidated gain attributable to the owners of the Company of US$96 million, 86% lower than the US$683 million profit achieved in 9M19, mainly due to the one-off non-cash profit from the settlement of Edenor's regulatory liabilities in 9M19, in addition to lower operating margin, lesser RECPAM recorded due to the lower passive net monetary position allocated to the electricity distribution segment, plus impairment of accrued assets and an income tax charge in 9M20.
Main highlights from the Q3 20 results[5]
Consolidated net revenues of US$592 million, 2% higher than the US$581 million recorded in Q3 19, mainly due to the commissioning of the new combined cycle gas turbine Genelba Plus and the strong devaluation in Q3 19 which implied a dilution of sales in Edenor, partially offset by reductions on fuel sales for own thermal power dispatch, lower prices and volumes of hydrocarbons sold, and lower prices and dispatch at spot energy.
- Power Generation of 4,000 GWh from 15 power plants
- Electricity sales of 5,434 GWh to 3.1 million end-users
- Production of 46.8 thousand boe per day of hydrocarbons
- Sales of 90 thousand tons of petrochemical products
Consolidated adjusted EBITDA of US$234 million, 3% lower than the US$242 million in Q3 19, due to decreases of 38% in electricity distribution and 31% in oil and gas, partially offset by increases of US$19 million in holding and others, US$4 million in petrochemicals and US$1 million in power generation.
Consolidated gain attributable to the owners of the Company of US$78 million, 33% lower than the US$116 million gain recorded in Q3 19, mainly explained by the financial effect from the Agreement for the Regularization and Settlement of Receivables with the WEM executed in Q3 19 and lower operating margin in oil and gas, partially offset by higher profit in our equity income.
Consolidated Balance Sheet |
||||||
(As of September 30, 2020 and December 31, 2019, in millions) |
||||||
Figures in million |
As of 9.30.2020 |
As of 12.31.2019 |
||||
AR$ |
US$ FX 76.18 |
AR$ |
US$ FX 59.89 |
|||
ASSETS |
||||||
Property, plant and equipment |
256,828 |
3,371 |
210,056 |
3,507 |
||
Intangible assets |
10,494 |
138 |
9,068 |
151 |
||
Right-of-use assets |
1,092 |
14 |
930 |
16 |
||
Deferred tax assets |
8,142 |
107 |
1,702 |
28 |
||
Investments in joint ventures and associates |
41,801 |
549 |
30,638 |
512 |
||
Financial assets at amortized cost |
7,624 |
100 |
1,048 |
17 |
||
Financial assets at fair value through profit and loss |
853 |
11 |
671 |
11 |
||
Other assets |
53 |
1 |
45 |
1 |
||
Trade and other receivables |
4,497 |
59 |
4,711 |
79 |
||
Total non-current assets |
331,384 |
4,350 |
258,869 |
4,322 |
||
Inventories |
10,244 |
134 |
9,175 |
153 |
||
Financial assets at amortized cost |
2,759 |
36 |
3,224 |
54 |
||
Financial assets at fair value through profit and loss |
11,170 |
147 |
21,867 |
365 |
||
Derivative financial instruments |
- |
- |
214 |
4 |
||
Trade and other receivables |
42,188 |
554 |
33,583 |
561 |
||
Cash and cash equivalents |
24,625 |
323 |
13,496 |
225 |
||
Total current assets |
90,986 |
1,194 |
81,559 |
1,362 |
||
Total assets |
422,370 |
5,544 |
340,428 |
5,684 |
||
EQUITY |
||||||
Total equity |
178,771 |
2,347 |
144,262 |
2,409 |
||
LIABILITIES |
||||||
Investments in joint ventures and associates |
184 |
2 |
265 |
4 |
||
Provisions |
10,767 |
141 |
8,703 |
145 |
||
Income tax liabilities |
8,776 |
115 |
590 |
10 |
||
Deferred revenue |
1,487 |
20 |
270 |
5 |
||
Taxes payables |
128 |
2 |
263 |
4 |
||
Deferred tax liabilities |
26,751 |
351 |
22,068 |
368 |
||
Defined benefit plans |
2,395 |
31 |
1,606 |
27 |
||
Salaries and social security payable |
340 |
4 |
241 |
4 |
||
Borrowings |
110,582 |
1,452 |
105,629 |
1,764 |
||
Trade and other payables |
7,471 |
98 |
5,419 |
90 |
||
Total non-current liabilities |
168,881 |
2,217 |
145,054 |
2,422 |
||
Provisions |
1,639 |
22 |
1,206 |
20 |
||
Deferred revenue |
32 |
0 |
5 |
0 |
||
Income tax liabilities |
1,405 |
18 |
3,154 |
53 |
||
Taxes payables |
4,595 |
60 |
4,316 |
72 |
||
Defined benefit plans |
243 |
3 |
230 |
4 |
||
Salaries and social security payable |
3,714 |
49 |
3,834 |
64 |
||
Derivative financial instruments |
22 |
0 |
204 |
3 |
||
Borrowings |
20,612 |
271 |
10,974 |
183 |
||
Trade and other payables |
42,456 |
557 |
27,189 |
454 |
||
Total current liabilities |
74,718 |
981 |
51,112 |
853 |
||
Total liabilities |
243,599 |
3,198 |
196,166 |
3,275 |
||
Total liabilities and equity |
422,370 |
5,544 |
340,428 |
5,684 |
||
Consolidated Income Statement |
||||||||||||
(For the nine-month period and quarter ended on September 30, 2020 and 2019, in millions) |
||||||||||||
Nine-month period |
Third quarter |
|||||||||||
Figures in million |
2020 |
2019 |
2020 |
2019 |
||||||||
AR$ |
US$ |
AR$ |
US$ |
AR$ |
US$ |
AR$ |
US$ |
|||||
Sales revenue |
119,493 |
1,651 |
110,198 |
2,137 |
47,705 |
592 |
44,606 |
581 |
||||
Cost of sales |
(87,675) |
(1,208) |
(77,931) |
(1,484) |
(33,549) |
(410) |
(31,061) |
(372) |
||||
Gross profit |
31,818 |
443 |
32,267 |
653 |
14,156 |
182 |
13,545 |
209 |
||||
Selling expenses |
(9,556) |
(129) |
(5,785) |
(104) |
(4,062) |
(50) |
(2,141) |
(18) |
||||
Administrative expenses |
(7,950) |
(112) |
(5,757) |
(118) |
(2,885) |
(36) |
(2,132) |
(32) |
||||
Exploration expenses |
(21) |
- |
(155) |
(4) |
(12) |
- |
(84) |
(2) |
||||
Other operating income |
4,163 |
58 |
3,932 |
85 |
1,706 |
21 |
1,398 |
18 |
||||
Other operating expenses |
(3,059) |
(43) |
(3,189) |
(64) |
(977) |
(12) |
(1,232) |
(17) |
||||
Results for part. in joint businesses and associates |
4,809 |
66 |
3,429 |
62 |
1,652 |
20 |
501 |
(7) |
||||
Impairment of PPE and inventory |
(4,316) |
(67) |
- |
- |
- |
- |
- |
- |
||||
Agreement from regularization of liabilities |
- |
- |
15,296 |
266 |
- |
- |
2,230 |
(42) |
||||
Operating income |
15,888 |
216 |
40,038 |
776 |
9,578 |
125 |
12,085 |
109 |
||||
RECPAM |
5,997 |
79 |
8,514 |
148 |
2,738 |
33 |
2,689 |
11 |
||||
Financial income |
545 |
8 |
925 |
22 |
238 |
4 |
164 |
4 |
||||
Financial costs |
(14,019) |
(198) |
(10,669) |
(219) |
(5,728) |
(74) |
(3,518) |
(49) |
||||
Other financial results |
1,764 |
27 |
1,966 |
56 |
1,331 |
18 |
1,428 |
50 |
||||
Financial results, net |
(5,713) |
(84) |
736 |
7 |
(1,421) |
(19) |
763 |
16 |
||||
Profit before tax |
10,175 |
132 |
40,774 |
783 |
8,157 |
106 |
12,848 |
125 |
||||
Income tax |
(3,944) |
(49) |
(2,828) |
7 |
(1,987) |
(28) |
(3,987) |
(29) |
||||
Net income (loss) for the period |
6,231 |
83 |
37,946 |
790 |
6,170 |
78 |
8,861 |
96 |
||||
Attributable to the owners of the Company |
7,156 |
96 |
31,863 |
683 |
6,161 |
78 |
8,159 |
116 |
||||
Attributable to the non-controlling interests |
(925) |
(13) |
6,083 |
107 |
9 |
- |
702 |
(20) |
||||
Net income per share attributable to the shareholders |
4.56 |
0.06 |
17.43 |
0.37 |
4.08 |
0.05 |
4.59 |
0.07 |
||||
Net income per ADR attributable to the shareholders |
113.90 |
1.53 |
435.76 |
9.34 |
101.99 |
1.29 |
114.75 |
1.63 |
||||
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 Q3 20 results on Thursday November 12, 2020 at 10:00 a.m. Eastern Standard Time/12:00 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/Pampa3Q20VideoCall. 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:
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
[email protected]
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' (9M20: US$305 million and Q3 20: US$97 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 Q3 20 and Q3 19 quarters are based on FS prepared according to IFRS in force in Argentina, corresponding to the nine-month period of 2020 and 2019, and the quarters ended June 30, 2020 and 2019, respectively.
SOURCE Pampa Energia S.A.
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