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

PAM

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
investor@pampaenergia.com 
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.

Cision View original content:http://www.prnewswire.com/news-releases/pampa-energia-announces-results-for-the-nine-month-period-and-quarter-ended-on-september-30-2019-300955915.html

SOURCE Pampa Energia S.A.



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