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Pampa Energía announces results for the six-month period and quarter ended on June 30, 2020

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BUENOS AIRES, Argentina, Aug. 11, 2020 /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, 2020.

As from January 1, 2019, the Company adopted US$ as functional currency for the reporting of its financial information. The presentation of this information in AR$ is converted at transactional nominal exchange rate ('FX').

However, Edenor (electricity distribution), OldelVal (oil and gas), Transener, TGS and Refinor (holding and others) continue recording their operations in local currency. Thus, the 2020 figures are adjusted by inflation as of June 30, 2020 (1H 20: 6.4% and Q2 20: 2.6%), translated to US$ at closing FX of 70.46. Moreover, the 2019 figures are adjusted by inflation as of June 30, 2019 (1H 19: 10.1% and Q2 19: 4.5%), translated to US$ at closing FX of 42.461.

Main highlights from the 1H 20 results

Consolidated net revenues of US$1,059 million2, 30% lower than the US$1,516 million recorded in 1H 19, mainly due to unadjusted tariffs at regulated businesses, the termination of fuel self-procurement for power sold to CAMMESA as from January 2020, and lower prices and volumes sold in oil and gas, partially offset by new power generation units priced under PPAs.

  • Power Generation of 8,070 GWh from 15 power plants3
  • Electricity sales of 9,994 GWh to 3.1 million end-users
  • Production of 44.9 thousand boe per day of hydrocarbons
  • Sales of 139 thousand tons of petrochemical products

Consolidated adjusted EBITDA4 of US$341 million, 30% lower than the US$484 million in 1H 19, due to decreases of 69% in electricity distribution, 65% in oil and gas, 60% in petrochemicals and 23% in holding and others, partially offset by 6% increase at power generation and lower intersegment eliminations for US$1 million.

Consolidated gain attributable to the owners of the Company of US$18 million, 97% lower than the US$567 million gain achieved in 1H 19, mainly due to the extraordinary non-cash profit from the settlement of Edenor's regulatory liabilities in 1H 19, in addition to lower operating margins in oil and gas and regulated businesses, lesser RECPAM recorded due to the lower passive net monetary position allocated to the electricity distribution segment, an income tax charge and impairment of accrued assets in 1H 20.

Main highlights from the Q2 20 results5

Consolidated net revenues of US$450 million, 43% lower than the US$788 million recorded in Q2 19, mainly due to unadjusted tariffs at regulated businesses, the termination of fuel self-procurement for power sold to CAMMESA as from January 2020, and lower prices and volumes sold in oil and gas, partially offset by new power generation units priced under PPAs.

  • Power Generation of 3,461 GWh from 15 power plants
  • Electricity sales of 4,791 GWh to 3.1 million end-users
  • Production of 43.7 thousand boe per day of hydrocarbons
  • Sales of 52 thousand tons of petrochemical products

Consolidated adjusted EBITDA of US$120 million, 56% lower than the US$271 million in Q2 19, due to decreases of 5% in power generation, US$86 million in electricity distribution, 88% in oil and gas, and 35% in holding and others, partially offset by a 33% increase at petrochemicals and lower intersegment eliminations for US$1 million.

Consolidated gain attributable to the owners of the Company of US$4 million, 99% lower than the US$400 million gain in Q2 19, mainly due to Edenor's extraordinary non-cash profit in Q2 19, in addition to lower operating margins in oil and gas and regulated businesses, and lesser RECPAM recorded due to the lower passive net monetary position allocated to the electricity distribution segment and income tax charge.

   

Consolidated Balance Sheet

(As of June 30, 2020 and December 31, 2019, in millions) 








Figures in million


As of 6.30.2020


As of 12.31.2019


AR$

US$ FX 70.46


AR$

US$ FX 59.89

ASSETS







Property, plant and equipment


239,109

3,394


210,056

3,507

Intangible assets


9,812

139


9,068

151

Right-of-use assets


998

14


930

16

Deferred tax assets


6,095

87


1,702

28

Investments in joint ventures and associates


37,340

530


30,638

512

Financial assets at amortized cost


-

-


1,048

17

Financial assets at fair value through profit and loss


789

11


671

11

Other assets


54

1


45

1

Trade and other receivables


5,301

75


4,711

79

Total non-current assets


299,498

4,251


258,869

4,322

Inventories


9,218

131


9,175

153

Financial assets at amortized cost


3,350

48


3,224

54

Financial assets at fair value through profit and loss


4,232

60


21,867

365

Derivative financial instruments


-

-


214

4

Trade and other receivables


33,284

472


33,583

561

Cash and cash equivalents


29,151

414


13,496

225

Total current assets


79,235

1,125


81,559

1,362








Total assets


378,733

5,375


340,428

5,684








EQUITY







Total equity


162,126

2,301


144,262

2,409








LIABILITIES







Investments in joint ventures and associates


222

3


265

4

Provisions


10,038

142


8,703

145

Income tax provision


6,035

86


590

10

Deferred revenue


1,200

17


270

5

Taxes payables


128

2


263

4

Deferred tax liabilities


24,482

347


22,068

368

Defined benefit plans


2,133

30


1,606

27

Salaries and social security payable 


309

4


241

4

Borrowings


107,469

1,525


105,629

1,764

Trade and other payables


7,202

102


5,419

90

Total non-current liabilities


159,218

2,260


145,054

2,422

Provisions


1,437

20


1,206

20

Deferred revenue


32

0


5

0

Income tax provision


1,833

26


3,154

53

Taxes payables


3,798

54


4,316

72

Defined benefit plans


238

3


230

4

Salaries and social security payable 


3,208

46


3,834

64

Derivative financial instruments


47

1


204

3

Borrowings


15,302

217


10,974

183

Trade and other payables


31,494

447


27,189

454

Total current liabilities


57,389

814


51,112

853








Total liabilities


216,607

3,074


196,166

3,275








Total liabilities and equity


378,733

5,375


340,428

5,684








 

Consolidated Income Statement




(For the six-month period and quarter ended on June 30, 2020 and 2019, in millions)










First half


Second quarter

Figures in million


2020


2019


2020


2019



AR$

US$


AR$

US$


AR$

US$


AR$

US$

Sales revenue


71,788

1,059


63,932

1,516


33,251

450


34,505

788

Cost of sales


(53,952)

(795)


(45,131)

(1,070)


(26,396)

(359)


(23,862)

(547)














Gross profit


17,836

264


18,801

446


6,855

91


10,643

241














Selling expenses


(5,494)

(79)


(3,644)

(86)


(3,166)

(43)


(1,831)

(43)

Administrative expenses


(5,239)

(79)


(3,704)

(88)


(2,815)

(40)


(1,841)

(43)

Exploration expenses


(9)

-


(71)

(2)


(5)

-


(30)

(1)

Other operating income


889

13


896

21


407

6


446

8

Other operating expenses


(2,082)

(31)


(1,957)

(47)


(1,260)

(17)


(940)

(22)

Results for part. in joint businesses and associates


3,157

46


2,928

69


1,088

14


2,093

49

Impairment of PPE and inventory


(4,316)

(67)


-

-


-

-


-

-

Agreement from regularization of liabilities


-

-


13,066

308


-

-


13,066

308














Operating income


4,742

67


26,315

621


1,104

11


21,606

497














RECPAM


3,259

46


5,825

137


1,583

20


2,517

61

Financial income


1,875

28


2,399

64


868

12


1,101

31

Financial costs


(8,291)

(124)


(7,151)

(170)


(4,430)

(62)


(3,540)

(82)

Other financial results


433

9


538

6


1,547

24


1,033

12

Financial results, net


(2,724)

(41)


1,611

37


(432)

(6)


1,111

22














Profit before tax


2,018

26


27,926

658


672

5


22,717

519














Income tax


(1,957)

(21)


1,159

36


(1,554)

(16)


(268)

6














Net income (loss) for the period


61

5


29,085

694


(882)

(11)


22,449

525

Attributable to the owners of the Company


995

18


23,704

567


220

4


17,173

400

Attributable to the non-controlling interests


(934)

(13)


5,381

127


(1,102)

(15)


5,276

125














Net income per share attributable to the shareholders


0.62

0.01


12.79

0.31


0.14

0.00


9.40

0.22

Net income per ADR attributable to the shareholders


15.54

0.28


319.69

7.65


3.50

0.06


234.88

5.47

 

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

Information about the videoconference

There will be a videoconference to discuss Pampa's Q2 20 results on Wednesday August 12, 2020 at 10:00 a.m. Eastern Standard Time/11:00 a.m. Buenos Aires Time.

The hosts will be Gustavo Mariani, CEO, Gabriel Cohen, CFO and Lida Wang, investor relations and sustainability officer at Pampa.

For those interested in participating, please register at bit.ly/Pampa2Q20VideoCall. The videoconference call will also be simultaneously webcasted at Pampa's website ri.pampaenergia.com/en.

You may find additional information on the Company at:

For more information, contact:
Gustavo Mariani
CEO

Gabriel Cohen
CFO

Lida Wang
Investor relations and sustainability 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 For further information, see section 3 of Pampa's financial statements ('FS').

2 Under International Financial Reporting Standards ('IFRS'), sales at our ownership from the affiliates Greenwind, OldelVal, Refinor, CTBSA, Transener and TGS are not consolidated in Pampa, being its equity income shown as 'Results for participation in joint businesses and associates' (1H 20: US$208 million and Q2 20: US$94 million).

3 Includes 100% of Ensenada Barragán Thermal Power Plant ('CTEB') and Mario Cebreiro Wind Farm ('PEMC'), assets operated by Pampa but co-controlled by Pampa, with 50% of equity stake.

4 Consolidated adjusted EBITDA represents the results before financial results, 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.

5 The financial information presented in this document for Q2 20 and Q2 19 quarters are based on FS prepared according to IFRS in force in Argentina, corresponding to the six-month period of 2020 and 2019, and the quarters ended March 31, 2020 and 2019, 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-30-2020-301110401.html

SOURCE Pampa Energia S.A.

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