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 | |||||||