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

PAM

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
investor@pampaenergia.com 
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.

Cision View original content:http://www.prnewswire.com/news-releases/pampa-energia-announces-results-for-the-six-month-period-and-quarter-ended-on-june-30-2019-300900386.html

SOURCE Pampa Energia S.A.



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