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

BUENOS AIRES, Nov. 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 nine-month period and quarter ended on September 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 September 30, 2020 (9M20: 10.0% and Q3 20: 3.7%), translated to US$ at closing FX of 76.18. Moreover, the 2019 figures are adjusted by inflation as of September 30, 2019 (9M19: 15.9% and Q3 19: 5.9%), translated to US$ at closing FX of 57.59[1].

Main highlights from the 9M20 results

Consolidated net revenues of US$1,651 million[2], 23% lower than the US$2,137 million recorded in 9M19, mainly due to tariff freeze in the regulated businesses, lower gas sales for own power generation, fall on prices and volumes of hydrocarbons and petrochemicals products, and lower remuneration for spot energy, partially offset by the commissioning of new power generation units priced under PPA.

  • Power Generation of 12,069 GWh from 15 power plants[3]
  • Electricity sales of 15,427 GWh to 3.1 million end-users
  • Production of 45.5 thousand boe per day of hydrocarbons
  • Sales of 230 thousand tons of petrochemical products

Consolidated adjusted EBITDA[4] of US$583 million, 20% lower than the US$731 million in 9M19, due to decreases of 55% in electricity distribution and 53% in oil and gas, partially offset by increases of 7% in petrochemicals, 4% in power generation and 1% in holding and others.

Consolidated gain attributable to the owners of the Company of US$96 million, 86% lower than the US$683 million profit achieved in 9M19, mainly due to the one-off non-cash profit from the settlement of Edenor’s regulatory liabilities in 9M19, in addition to lower operating margin, lesser RECPAM recorded due to the lower passive net monetary position allocated to the electricity distribution segment, plus impairment of accrued assets and an income tax charge in 9M20.

Main highlights from the Q3 20 results[5]

Consolidated net revenues of US$592 million, 2% higher than the US$581 million recorded in Q3 19, mainly due to the commissioning of the new combined cycle gas turbine Genelba Plus and the strong devaluation in Q3 19 which implied a dilution of sales in Edenor, partially offset by reductions on fuel sales for own thermal power dispatch, lower prices and volumes of hydrocarbons sold, and lower prices and dispatch at spot energy.

  • Power Generation of 4,000 GWh from 15 power plants
  • Electricity sales of 5,434 GWh to 3.1 million end-users
  • Production of 46.8 thousand boe per day of hydrocarbons
  • Sales of 90 thousand tons of petrochemical products

Consolidated adjusted EBITDA of US$234 million, 3% lower than the US$242 million in Q3 19, due to decreases of 38% in electricity distribution and 31% in oil and gas, partially offset by increases of US$19 million in holding and others, US$4 million in petrochemicals and US$1 million in power generation.

Consolidated gain attributable to the owners of the Company of US$78 million, 33% lower than the US$116 million gain recorded in Q3 19, mainly explained by the financial effect from the Agreement for the Regularization and Settlement of Receivables with the WEM executed in Q3 19 and lower operating margin in oil and gas, partially offset by higher profit in our equity income.

Consolidated Balance Sheet

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








Figures in million


As of 9.30.2020


As of 12.31.2019


AR$

US$ FX 76.18


AR$

US$ FX 59.89

ASSETS







Property, plant and equipment


256,828

3,371


210,056

3,507

Intangible assets


10,494

138


9,068

151

Right-of-use assets


1,092

14


930

16

Deferred tax assets


8,142

107


1,702

28

Investments in joint ventures and associates


41,801

549


30,638

512

Financial assets at amortized cost


7,624

100


1,048

17

Financial assets at fair value through profit and loss


853

11


671

11

Other assets


53

1


45

1

Trade and other receivables


4,497

59


4,711

79

Total non-current assets


331,384

4,350


258,869

4,322

Inventories


10,244

134


9,175

153

Financial assets at amortized cost


2,759

36


3,224

54

Financial assets at fair value through profit and loss


11,170

147


21,867

365

Derivative financial instruments



214

4

Trade and other receivables


42,188

554


33,583

561

Cash and cash equivalents


24,625

323


13,496

225

Total current assets


90,986

1,194


81,559

1,362








Total assets


422,370

5,544


340,428

5,684








EQUITY







Total equity


178,771

2,347


144,262

2,409








LIABILITIES







Investments in joint ventures and associates


184

2


265

4

Provisions


10,767

141


8,703

145

Income tax liabilities


8,776

115


590

10

Deferred revenue


1,487

20


270

5

Taxes payables


128

2


263

4

Deferred tax liabilities


26,751

351


22,068

368

Defined benefit plans


2,395

31


1,606

27

Salaries and social security payable 


340

4


241

4

Borrowings


110,582

1,452


105,629

1,764

Trade and other payables


7,471

98


5,419

90

Total non-current liabilities


168,881

2,217


145,054

2,422

Provisions


1,639

22


1,206

20

Deferred revenue


32

0


5

0

Income tax liabilities


1,405

18


3,154

53

Taxes payables


4,595

60


4,316

72

Defined benefit plans


243

3


230

4

Salaries and social security payable 


3,714

49


3,834

64

Derivative financial instruments


22

0


204

3

Borrowings


20,612

271


10,974

183

Trade and other payables


42,456

557


27,189

454

Total current liabilities


74,718

981


51,112

853








Total liabilities


243,599

3,198


196,166

3,275








Total liabilities and equity


422,370

5,544


340,428

5,684

Consolidated Income Statement

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
















Nine-month period


Third quarter

Figures in million


2020


2019


2020


2019



AR$

US$


AR$

US$


AR$

US$


AR$

US$

Sales revenue


119,493

1,651


110,198

2,137


47,705

592


44,606

581

Cost of sales


(87,675)

(1,208)


(77,931)

(1,484)


(33,549)

(410)


(31,061)

(372)














Gross profit


31,818

443


32,267

653


14,156

182


13,545

209














Selling expenses


(9,556)

(129)


(5,785)

(104)


(4,062)

(50)


(2,141)

(18)

Administrative expenses


(7,950)

(112)


(5,757)

(118)


(2,885)

(36)


(2,132)

(32)

Exploration expenses


(21)


(155)

(4)


(12)


(84)

(2)

Other operating income


4,163

58


3,932

85


1,706

21


1,398

18

Other operating expenses


(3,059)

(43)


(3,189)

(64)


(977)

(12)


(1,232)

(17)

Results for part. in joint businesses and associates


4,809

66


3,429

62


1,652

20


501

(7)

Impairment of PPE and inventory


(4,316)

(67)




Agreement from regularization of liabilities



15,296

266



2,230

(42)














Operating income


15,888

216


40,038

776


9,578

125


12,085

109














RECPAM


5,997

79


8,514

148


2,738

33


2,689

11

Financial income


545

8


925

22


238

4


164

4

Financial costs


(14,019)

(198)


(10,669)

(219)


(5,728)

(74)


(3,518)

(49)

Other financial results


1,764

27


1,966

56


1,331

18


1,428

50

Financial results, net


(5,713)

(84)


736

7


(1,421)

(19)


763

16














Profit before tax


10,175

132


40,774

783


8,157

106


12,848

125














Income tax


(3,944)

(49)


(2,828)

7


(1,987)

(28)


(3,987)

(29)














Net income (loss) for the period


6,231

83


37,946

790


6,170

78


8,861

96

Attributable to the owners of the Company


7,156

96


31,863

683


6,161

78


8,159

116

Attributable to the non-controlling interests


(925)

(13)


6,083

107


9


702

(20)














Net income per share attributable to the shareholders


4.56

0.06


17.43

0.37


4.08

0.05


4.59

0.07

Net income per ADR attributable to the shareholders


113.90

1.53


435.76

9.34


101.99

1.29


114.75

1.63

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 Q3 20 results on Thursday November 12, 2020 at 10:00 a.m. Eastern Standard Time/12:00 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/Pampa3Q20VideoCall. 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
[email protected] 
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’ (9M20: US$305 million and Q3 20: US$97 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 Q3 20 and Q3 19 quarters are based on FS prepared according to IFRS in force in Argentina, corresponding to the nine-month period of 2020 and 2019, and the quarters ended June 30, 2020 and 2019, respectively.

SOURCE Pampa Energia S.A.

Related Links

http://www.pampaenergia.com

Source

Leave a Reply

Your email address will not be published. Required fields are marked *