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 42.461.
Main highlights from the 1H 20 results
Consolidated net revenues of US$1,059 million2, 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 plants3
- 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 EBITDA4 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 results5
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$400 million gain in Q2 19, mainly due to Edenor's extraordinary non-cash profit in Q2 19, in addition to lower operating margins in oil and gas and regulated businesses, and lesser RECPAM recorded due to the lower passive net monetary position allocated to the electricity distribution segment and income tax charge.
Consolidated Balance Sheet |
|||||||
(As of June 30, 2020 and December 31, 2019, in millions) |
|||||||
Figures in million |
As of 6.30.2020 |
As of 12.31.2019 |
|||||
AR$ |
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 |
|||
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 |
|||
Total assets |
378,733 |
5,375 |
340,428 |
5,684 |
|||
EQUITY |
|||||||
Total equity |
162,126 |
2,301 |
144,262 |
2,409 |
|||
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 |
|||
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 |
|||
Total liabilities |
216,607 |
3,074 |
196,166 |
3,275 |
|||
Total liabilities and equity |
378,733 |
5,375 |
340,428 |
5,684 |
|||
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 |
||||
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 |
||||
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 |
||||
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 |
||||
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:
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' (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.
SOURCE Pampa Energia S.A.
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