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Pampa Energía S.A. announces results for the six-month period and quarter ended on June 30, 2018

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Pampa Energía S.A. announces results for the six-month period and quarter ended on June 30, 2018

PR Newswire

BUENOS AIRES, Argentina, Aug. 13, 2018 /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, 2018. All figures are stated in Argentine Pesos and have been prepared in accordance with International Financial Reporting Standards.

Main Results for the First Semester of 2018 ('1H18')1

In order to reflect the financial performance of each business segment, as from 2018 and for the comparative periods, the selling and administrative expenses, as well as the financial results, which used to be assigned to holding and others, will be redistributed among the operating segments.

Consolidated net revenues of AR$39,718 million2, 74% higher than the AR$22,801 million for the first half of 2017 ('1H17'), explained by increases of 113% in power generation, 91% in electricity distribution, 34% in oil and gas, 30% in petrochemicals and 126% in holding and others segment, partially offset by 9% of higher eliminations as a result of intersegment sales.

  • Power Generation of 7,948 GWh from 12 power plants
  • Electricity sales of 10,894 GWh to 3 million end-users
  • Production of 45.9 thousand barrels per day of hydrocarbons
  • Sales of 182 thousand tons of petrochemical products

Consolidated adjusted EBITDA3 for continuing operations of AR$14,881 million, compared to AR$6,435 million for 1H17, mainly due to increases of AR$2,945 million in power generation, AR$3,438 million in electricity distribution, AR$592 million in oil and gas, AR$6 million in refining and distribution, AR$79 million in petrochemicals and AR$1,425 million in holding and others segment, partially offset by higher intersegment eliminations of AR$39 million.

Consolidated profit attributable to the owners of the Company of AR$352 million, lower than the AR$1,810 million gain in 1H17, mainly explained by AR$13,772 million losses accrued due to 55%4 of AR$ depreciation against US$, currency in which most of the Company's financial liabilities are denominated, whereas the FS reports in AR$, without inflation adjustment.

Main Results for the Second Quarter of 2018 ('Q2 18')5

Consolidated net revenues of AR$20,317 million, 74% higher than the AR$11,661 million for the second quarter 2017 ('Q2 17'), explained by increases of 116% in power generation, 78% in electricity distribution, 37% in oil and gas, 57% in petrochemicals and 151% in holding and others segment, as well as 5% of lower eliminations as a result of intersegment sales.

  • Power Generation of 3,659 GWh from 12 power plants
  • Electricity sales of 5,344 GWh to 3 million end-users
  • Production of 45.9 thousand barrels per day of hydrocarbons
  • Sales of 95 thousand tons of petrochemical products

Consolidated adjusted EBITDA for continuing operations of AR$7,505 million, compared to AR$3,208 million for Q2 17, mainly due to increases of AR$1,643 million in power generation, AR$1,247 million in electricity distribution, AR$486 million in oil and gas, AR$44 million in petrochemicals and AR$944 million in holding and others segment, partially offset by losses of AR$49 million in refining and distribution, and higher intersegment eliminations of AR$18 million.

Consolidated loss attributable to the owners of the Company of AR$2,661 million, higher than the AR$91 million loss in Q2 17, explained by the accrual of AR$11,367 million losses due to 43%6 of AR$ depreciation against US$.

Consolidated Balance Sheet

(As of June 30, 2018 and December 31, 2017, in millions of Argentine Pesos)




In AR$ million

As of 6.30.18

As of 12.31.17

ASSETS



Participation in joint businesses and associates

6,589

5,754

Property, plant and equipment

46,467

41,214

Intangible assets

1,570

1,586

Other assets

21

2

Financial assets at fair value with changing results

150

150

Deferred tax credits

1,892

1,306

Trade receivable and other credits

8,274

5,042

Total non-current assets

64,963

55,054

Inventories

4,254

2,326

Financial assets at fair value with changing results

23,089

14,613

Investments at amortized cost

516

25

Financial derivatives

4

4

Trade receivable and other credits

23,431

19,145

Cash and cash equivalents

3,223

799

Total current assets

54,517

36,912

Assets classified as held for sale

1,013

12,501

Total assets

120,493

104,467




EQUITY



Share capital

1,948

2,080

Share premium

5,822

5,818

Repurchased shares

135

3

Cost of repurchased shares

(6,344)

(72)

Statutory reserve

416

300

Voluntary reserve

8,412

5,146

Other reserves

(363)

140

Retained earnings

176

3,243

Other comprehensive result

(198)

252

Equity attributable to owners of the parent

10,004

16,910

Non-controlling interests

1,316

3,202

Total equity

11,320

20,112




LIABILITIES



Investments in joint ventures and associates

350

-

Accounts payable and other liabilities

6,734

6,404

Borrowings

55,165

37,126

Deferred revenues

196

195

Salaries and social security payable

136

120

Defined benefit plan obligations

1,071

992

Deferred tax liabilities

465

1,526

Income tax and minimum expected profit tax liability

925

863

Tax payable

836

366

Provisions

5,386

4,435

Total non-current liabilities

71,264

52,027

Accounts payable and other liabilities

23,431

18,052

Borrowings

8,806

5,840

Deferred income

3

3

Salaries and social security payable

1,508

2,154

Defined benefit plan obligations

99

121

Income tax and minimum expected profit tax liability

1,305

943

Tax payable

2,054

1,965

Financial derivatives

112

82

Provisions

548

798

Total current liabilities

37,866

29,958

Liabilities associated to assets classified as held for sale

43

2,370

Total liabilities

109,173

84,355




Total liabilities and equity

120,493

104,467

 

 

Consolidated Income Statement

(For the six-month period and quarter ended on June 30, 2018 and 2017, in millions of Argentine Pesos)








First Half


Second Quarter

In AR$ million


2018


2017


2018


2017

Sales revenue


39,718


22,801


20,317


11,661

Cost of sales


(24,494)


(15,721)


(12,839)


(8,313)










Gross profit


15,224


7,080


7,478


3,348










Selling expenses


(1,862)


(1,410)


(895)


(698)

Administrative expenses


(2,705)


(2,088)


(1,423)


(1,034)

Exploration expenses


(4)


(13)


(2)


(5)

Other operating income


3,746


1,844


256


603

Other operating expenses


(3,375)


(1,260)


(863)


(535)

Results for participation in joint businesses and associates


632


568


73


274

Operating income


11,656


4,721


4,624


1,953










Financial income


956


664


528


350

Financial costs


(3,066)


(2,410)


(1,631)


(1,143)

Other financial results


(13,341)


(705)


(11,213)


(1,323)

Financial results, net


(15,451)


(2,451)


(12,316)


(2,116)










Profit before tax


(3,795)


2,270


(7,692)


(163)










Income tax


1,936


(112)


2,511


320










Net income for continuing operations


(1,859)


2,158


(5,181)


157










Net income from discontinued operations


3,069


188


2,538


(106)










Net income for the period


1,210


2,346


(2,643)


51










Attributable to:









Owners of the Company


352

-

1,810


(2,661)


(91)

Continuing operations


(2,654)


1,637


(5,198)


(14)

Discontinued operations


3,006


173


2,537


(77)

Non-controlling interests


858


536


18


142










Net income per share attributable to the owners of the Company


0.1731


0.9349


(1.3373)


(0.0469)

Basic and diluted income per share of continuing operations


(1.3048)


0.8378


(2.6122)


(0.0072)

Basic and diluted income per share of discontinued operations


1.4779


0.0971


1.2749


(0.0397)


For the full version of the Earnings Report, please visit Pampa's Investor Relations website: www.pampaenergia.com/ir.

Information about the Conference Call

There will be a conference call to discuss Pampa's Q2 18 results on Tuesday, August 14, 2018 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 0-800-444-2930 in Argentina, +1 (844) 854-4411 in the United States or +1 (412) 317-5481 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 18 Conference Call Presentation from our IR website. There will also be a live audio webcast and presentation of the conference at bit.ly/PampaQ218Call.

You may find additional information on the Company at:

For further information, contact:

Gustavo Mariani
Executive Vice-president

Ricardo Torres
Executive Vice-president

Mariano Batistella
Executive Director of Planning, Strategy & Affiliates

Lida Wang
Investor Relations Officer

The Pampa Energía Building, Maipú 1 (C1084ABA) Ciudad de Buenos Aires, Argentina
Tel: +54 (11) 4344-6000
investor@pampaenergia.com 
www.pampaenergia.com/ir

1 The financial information presented in this document are based on financial statements ('FS') prepared according to the International Financial Reporting Standards ('IFRS') in force in Argentina, and consequently, the FS discriminates the continuing operations from the assets agreed for sale, which are reported as discontinued operations.
2 Under the IFRS, Greenwind, OldelVal, Refinor, Transener and TGS are not consolidated in Pampa's FS, being its equity income being 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, non-recurring and non-cash income and expense, equity income and other adjustments from the IFRS implementation, and includes affiliates' EBITDA at ownership. For more information, see section 3 of this Earnings Release.
4 1H18 nominal exchange rate variation.
5 The financial information presented in this document for the quarters ended on June 30, 2018 and of 2017 are based on unaudited FS prepared according to the IFRS accounting standards in force in Argentina corresponding to the six-month period of 2018 and 2017, and the quarters ended on March 31, 2018 and 2017, respectively. 
6 Q2 18 nominal exchange rate variation.

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SOURCE Pampa Energia S.A.

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