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

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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


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