Pampa Energía Announces Results for the six-month period and quarter ended on June 30, 2019

News provided by

Pampa Energia S.A.

Aug 12, 2019, 19:14 ET

BUENOS AIRES, Argentina, Aug. 12, 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 six-month period and quarter ended on June 30, 2019.

As from April 1, 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 related to the comparative periods are 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 in historical terms recorded in local currency ('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 June 30, 2019 and expressed in US$ at closing FX.

Main Results for the First Semester of 2019 ('1H 19')1

Consolidated net revenues of US$1,515 million2, 4% higher than the US$1,450 million recorded in the first semester of 2018 ('1H 18'), explained by increases of 56% in power generation, 8% in electricity distribution and 3% in petrochemicals, partially offset by decreases of 8% in oil and gas, and 38% in holding and others, in addition to higher eliminations due to intersegment sales of US$124 million.

  • Power Generation of 7,640 GWh from 15 power plants
  • Electricity sales of 9,866 GWh to 3.1 million end-users
  • Production of 47.7 thousand barrels per day of hydrocarbons
  • Sales of 178 thousand tons of petrochemical products

Consolidated adjusted EBITDA3 for continuing operations of US$484 million, 6% lower compared to the US$514 million for 1H 18, mainly due to decreases of 39% in electricity distribution, 22% in oil and gas and 2% in holding and others, partially offset by increases of 36% in power generation, US$10 million in petrochemicals and lower intersegment eliminations of US$1 million.

Consolidated gain attributable to the owners of the Company of US$567 million, higher than the US$63 million gain in 1H 18, 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 in the reporting methodology, partially offset by decrease at operating margins in electricity distribution and oil and gas segments.

Main Results for the Second Quarter 2019 ('Q2 19')4

Consolidated net revenues of US$808 million, 13% higher than the US$715 million recorded for the second quarter 2018 ('Q2 18'), explained by increases of 46% in power generation and 30% in electricity distribution, partially offset by decreases of 10% in oil and gas and 63% in holding and others, in addition to higher eliminations due to intersegment sales of US$63 million. Petrochemicals remained unchanged.

  • Power Generation of 3,727 GWh from 15 power plants
  • Electricity sales of 4,849 GWh to 3.1 million end-users
  • Production of 48.5 thousand barrels per day of hydrocarbons
  • Sales of 95 thousand tons of petrochemical products

Consolidated adjusted EBITDA for continuing operations of US$266 million, 21% higher compared to the US$219 million for Q2 18, mainly due to increases of 56% in power generation, 27% in electricity distribution and US$9 million in petrochemicals, partially offset by decreases of 15% in oil and gas and 10% in holding and others.

Consolidated gain attributable to the owners of the Company of US$394 million, US$466 million higher than the gain recorded in Q2 18, includes an extraordinary non-cash gain of Edenor and lower accrual of losses from FX difference, both effects explained above.

Consolidated Balance Sheet
(As of June 30, 2019 and December 31, 2018, in millions) 






Figures in million

FC US$ as of 6.30.2019

L&CC as of 12.31.2018

AR$

US$ FX 42.46

AR$

US$ FX 37.7

ASSETS






Property, plant and equipment

154,620

3,642

125,005

3,316

Intangible assets

7,025

165

6,080

161

Deferred tax credits

3,319

78

80

2

Participation in joint businesses and associates

21,741

512

15,333

407

Financial assets at fair value with changing results

458

11

422

11

Other assets

35

1

33

1

Right-of-use assets

289

7

-

-

Trade receivable and other credits

8,910

210

9,521

253

Total non-current assets

196,397

4,625

156,474

4,151

Inventories

7,036

166

5,169

137

Investments at amortized cost

-

-

1,330

35

Financial assets at fair value with changing results

10,596

250

15,273

405

Financial derivatives

7

0

3

0

Trade receivable and other credits

31,725

747

26,489

703

Cash and cash equivalents

8,527

201

9,097

241

Total current assets

57,891

1,363

57,361

1,522








Total assets

254,288

5,989

213,835

5,672








EQUITY






Share capital

1,815

43

1,874

50

Adjustment to share capital

9,826

231

9,826

261

Share premium

18,500

436

18,499

491

Repurchased shares

85

2

25

1

Adjustment to share capital in treasury

134

3

134

4

Cost of repurchased shares

(3,876)

(91)

(1,490)

(40)

Statutory reserve

1,753

41

904

24

Voluntary reserve

23,489

553

7,355

195

Other reserves

(720)

(17)

(483)

(13)

Retained earnings

25,304

596

15,193

403

Other comprehensive result

6,338

149

(314)

(8)

Equity attributable to owners of the parent

82,648

1,946

51,523

1,367

Non-controlling interests

24,779

584

16,160

429

Total equity

107,427

2,530

67,683

1,795








LIABILITIES






Investments in joint ventures and associates

199

5

153

4

Provisions

7,073

167

5,499

146

Income tax and minimum expected profit tax liability

503

12

1,034

27

Deferred revenues

273

6

275

7

Tax payable

586

14

542

14

Deferred tax liabilities

14,970

353

15,354

407

Defined benefit plan obligations

1,380

33

1,175

31

Salaries and social security payable

198

5

163

4

Borrowings

71,165

1,676

69,189

1,835

Accounts payable and other liabilities

3,878

91

8,162

216

Total non-current liabilities

100,225

2,360

101,546

2,694

Provisions

1,212

29

871

23

Deferred income

5

0

5

0

Income tax and minimum expected profit tax liability

3,004

71

1,084

29

Tax payable

2,637

62

2,052

54

Defined benefit plan obligations

161

4

162

4

Salaries and social security payable

2,053

48

2,726

72

Financial derivatives

6

0

49

1

Borrowings

13,651

322

12,901

342

Accounts payable and other liabilities

23,907

563

24,756

657

Total current liabilities

46,636

1,098

44,606

1,183








Total liabilities

146,861

3,459

146,152

3,877








Total liabilities and equity

254,288

5,989

213,835

5,672








Consolidated Income Statement
(For the six-month period and quarter ended on June 30, 2019 and 2018, in millions)



First Half

Second Quarter

Figures in million

2019*

2018†

2019*

2018†


AR$

US$

AR$

US$

AR$

US$

AR$

US$

Sales revenue

63,878

1,515

54,663

1,450

34,485

808

26,940

715

Cost of sales

(45,131)

(1,070)

(36,308)

(963)

(23,860)

(567)

(18,786)

(498)














Gross profit

18,747

445

18,355

487

10,625

241

8,154

216














Selling expenses

(3,644)

(86)

(2,677)

(71)

(1,831)

(43)

(1,243)

(33)

Administrative expenses

(3,704)

(88)

(3,805)

(101)

(1,842)

(43)

(1,932)

(51)

Exploration expenses

(71)

(2)

(5)

(0)

(30)

(1)

(2)

(0)

Other operating income

950

22

5,326

141

467

8

340

9

Other operating expenses

(1,957)

(47)

(4,741)

(126)

(940)

(22)

(1,266)

(34)

Results for participation in joint businesses and associates

2,928

69

705

19

2,090

43

(54)

(1)

Agreement from regularization of liabilities

13,066

308

-

-

13,066

308

-

-














Operating income

26,315

621

13,158

349

21,605

491

3,997

106














RECPAM - Results from net monetary position

5,825

137

7,413

197

2,517

61

3,825

101

Financial income

2,399

64

1,313

35

1,101

31

701

19

Financial costs

(7,151)

(170)

(4,728)

(125)

(3,540)

(82)

(2,322)

(62)

Other financial results

538

6

(17,936)

(476)

1,033

12

(14,878)

(395)

Financial results, net

1,611

37

(13,938)

(370)

1,111

22

(12,674)

(336)














Profit before tax

27,926

658

(780)

(21)

22,716

513

(8,677)

(230)














Income tax

1,159

36

543

14

(197)

6

2,858

76














Net income for continuing operations

29,085

694

(237)

(6)

22,519

519

(5,819)

(154)














Net income from discontinued operations

-

-

4,125

109

-

-

3,366

89














Net income for the period

29,085

694

3,888

103

22,519

519

(2,453)

(65)

Attributable to the owners of the Company

23,704

567

2,392

63

17,236

394

(2,695)

(71)

Continuing operations

23,704

567

(1,653)

(44)

17,236

394

(6,031)

(160)

Discontinued operations

-

-

4,045

107

-

-

3,336

88

Attributable to the non-controlling interests

5,381

127

1,496

40

5,283

125

242

6














Net income per share attributable to the owners of the Company

12.7853

0.3058

1.1759

0.0311

9.4518

0.2159

(1.3536)

(0.0360)

Basic and diluted income per share of continuing operations

12.7853

0.3058

(0.8126)

(0.0216)

9.4518

0.2159

(3.0293)

(0.0804)

Basic and diluted income per share of discontinued operations

-

-

1.9885

0.0527

-

-

1.6757

0.0444

* FC US$ was adopted on April1, 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 and Pampa Cogeneración, among other subsidiaries. The 1H 19 and Q2 19 results in AR$ are disclosed 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 1H 19 and Q2 19 are adjusted by inflation as of June 30, 2019 for approximately 10.1% and 4.5%, respectively, and the disclosure in US$ results from converting by a closing FX of AR$42.46 per US$.  

† Figures for 1H 18 and Q2 18 are recorded in AR$ and adjusted by inflation as of December 31, 2018 for approximately 36.7% and 32.6%, 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 Q2 19 results on Tuesday August 13, 2019 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 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. Please download the Q2 19 Conference Call Presentation from our IR website. There will also be a live audio webcast and presentation of the conference at http://bit.ly/PampaQ219Call.

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 The businesses under FC US$ use the corresponding period's average FX, whereas the figures adjusted by inflation are converted into US$ by applying the closing FX.

2 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'.

3 Consolidated adjusted EBITDA represents the results before net 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 June 30, 2019 and of 2018 are based on FS prepared according to IFRS in force in Argentina, corresponding to the six-month period of 2019 and 2018, and the quarters ended on March 31, 2019 and 2018, respectively.

SOURCE Pampa Energia S.A.

Related Links

http://www.pampaenergia.com

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