Pampa Energía announces results for the fiscal year and quarter ended on December 31, 2020

Rhea-AI Summary

Pampa Energía S.A. (NYSE: PAM) reported its fiscal year 2020 results, showing a 20% decline in net revenues to US$1,071 million, primarily from decreased gas sales and lower hydrocarbon prices. Adjusted EBITDA fell by 18% to US$750 million, with a consolidated loss of US$367 million, compared to a profit of US$692 million in 2019. For Q4 2020, revenues decreased by 10% to US$285 million, with a loss of US$463 million. The electricity distribution segment is now classified as discontinued operations due to the sale of Edenor.

Positive

• Power generation increased by 6%, totaling 16,470 GWh.
• Petrochemical sales rose, contributing US$13 million in adjusted EBITDA.

Negative

• Net revenues down 20% from last year.
• Consolidated loss of US$367 million compared to last year's profit.
• Adjusted EBITDA decreased 18% year-over-year.

BUENOS AIRES, Argentina, March 11, 2021 /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 fiscal year and quarter ended on December 31, 2020.

As of 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), Transener, TGS and Refinor (holding and others) record their operations in local currency. Thus, the 2020 figures are adjusted by inflation as of December 31, 2020 (2020: 15.3% and Q4 20: 5.4%), translated to US$ at closing FX of 84.15. Moreover, the 2019 figures are adjusted by inflation as of December 31, 2019 (2019: 21.2% and Q4 19: 5.5%), translated to US$ at closing FX of 59.89^[1].

On December 28, 2020, it was announced the sale of the controlling stake in Edenor. Therefore, the electricity distribution segment is shown as discontinued operations for the current and comparative periods^[2].

Main results for the fiscal year 2020

Consolidated net revenues for continuing operations of US$1,071 million^[3], 20% lower than the US$1,338 million recorded in 2019, mainly due to lower gas sales for our power generation, the drop in prices and volumes sold of hydrocarbons, petrochemical products and spot energy, partially offset by the commissioning of new power generation units priced under Power Purchase Agreement ('PPA').

• Power generation of 16,470 GWh from 15 power plants^[4]
• Production of 45.0 thousand boe per day of hydrocarbons
• Sales of 337 thousand tons of petrochemical products

Consolidated adjusted EBITDA^[5] of US$750 million, 18% lower than the US$915 million in 2019, due to decreases of 67% in electricity distribution, 48% in oil and gas and 12% in holding and others, partially offset by increases of 6% in power generation and US$13 million in petrochemicals.

Consolidated loss attributable to the owners of the Company of US$367 million, lower than the US$692 million profit achieved in 2019, mainly due to the impairment of assets in electricity distribution, power generation and petrochemicals, in addition to lower operating margin and an income tax charge. In 2019 income tax benefit and a US$285 million gain due to Edenor's regularization of liabilities were recorded.

Main results for the fourth quarter 2020 ('Q4 20')^[6]

Consolidated net revenues for continuing operations of US$285 million, 10% lower than the US$318 million recorded in Q4 19, mainly due to reduced fuel sales for our thermal power dispatch, lower price and volume sold of hydrocarbons and spot energy, partially offset by the commissioning of the new combined cycle gas turbine Genelba Plus, and to a lesser extent, by higher volumes sold of petrochemical products.

• Power generation of 4,400 GWh from 15 power plants
• Production of 43.7 thousand boe per day of hydrocarbons
• Sales of 107 thousand tons of petrochemical products

Consolidated adjusted EBITDA of US$168 million, 6% lower than the US$179 million in Q4 19, due to decreases of US$24 million in electricity distribution, 24% in holding and others, 7% in oil and gas and US$1 million in intersegment eliminations, partially offset by increases of 13% in power generation and US$12 million in petrochemicals.

Consolidated loss attributable to the owners of the Company of US$463 million, lower than the US$9 million profit recorded in Q4 19, mainly explained by the deterioration of assets in electricity distribution, partially offset by a lower income tax charge.

Consolidated balance sheet
(As of December 31, 2020 and 2019, in millions) 

Figures in million		As of 12.31.2020			As of 12.31.2019
		AR$	US$ FX 84.15		AR$	US$ FX 59.89
ASSETS
Property, plant and equipment		135,445	1,610		210,056	3,507
Intangible assets		3,455	41		9,068	151
Right-of-use assets		867	10		930	16
Deferred tax assets		9,082	108		1,702	28
Investments in joint ventures and associates		46,229	549		30,638	511
Financial assets at amortized cost		8,428	100		1,048	18
Financial assets at fair value through profit and loss		942	11		671	11
Other assets		57	1		45	1
Trade and other receivables		3,631	43		4,711	79
Total non-current assets		208,136	2,473		258,869	4,322
Inventories		9,766	116		9,175	153
Financial assets at amortized cost		2,062	25		3,224	54
Financial assets at fair value through profit and loss		27,382	325		21,867	365
Derivative financial instruments		1	-		214	4
Trade and other receivables		28,678	341		33,583	561
Cash and cash equivalents		11,900	141		13,496	225
Total current assets		79,789	948		81,559	1,362
Assets classified as held for sale		123,603	1,469		-	-
Total assets		411,528	4,890		340,428	5,684
EQUITY
Equity attributable to owners of the company		120,247	1,428		114,865	1,917
Non-controlling interest		28,631	341		29,397	492
Total equity		148,878	1,769		144,262	2,409
LIABILITIES
Investments in joint ventures and associates		161	2		265	4
Provisions		9,326	111		8,703	145
Income tax liabilities		11,004	131		590	10
Deferred revenue		-	-		270	5
Taxes payables		128	2		263	4
Deferred tax liabilities		93	1		22,068	368
Defined benefit plans		1,460	17		1,606	27
Salaries and social security payable		-	-		241	4
Borrowings		115,428	1,372		105,629	1,764
Trade and other payables		1,418	16		5,419	90
Total non-current liabilities		139,018	1,652		145,054	2,421
Provisions		1,379	16		1,206	20
Deferred revenue		-	-		5	-
Income tax liabilities		897	11		3,154	53
Taxes payables		3,030	36		4,316	72
Defined benefit plans		298	4		230	4
Salaries and social security payable		1,935	23		3,834	65
Derivative financial instruments		40	-		204	3
Borrowings		20,377	242		10,974	183
Trade and other payables		9,778	116		27,189	454
Total current liabilities		37,734	448		51,112	854
Liabilities associated to assets classified as held for sale		85,898	1,021		-	-
Total liabilities		262,650	3,121		196,166	3,275
Total liabilities and equity		411,528	4,890		340,428	5,684

Consolidated income statement
(For the fiscal year and quarter ended on December 31, 2020 and 2019, in millions)

		Fiscal year						Fourth quarter
Figures in million		2020			2019			2020			2019
		AR$	US$		AR$	US$		AR$	US$		AR$	US$
Sales revenue		76,639	1,071		64,699	1,338		23,067	285		18,809	318
Cost of sales		(46,850)	(663)		(39,169)	(811)		(14,481)	(181)		(12,457)	(216)
Gross profit		29,789	408		25,530	527		8,586	104		6,352	102
Selling expenses		(2,680)	(38)		(1,294)	(26)		(503)	(6)		(515)	(9)
Administrative expenses		(6,588)	(93)		(5,342)	(105)		(1,740)	(22)		(2,097)	(31)
Exploration expenses		(29)	-		(463)	(9)		(8)	-		(308)	(5)
Other operating income		4,056	56		3,749	79		1,453	18		188	12
Other operating expenses		(2,550)	(36)		(2,060)	(43)		(738)	(9)		(716)	(11)
Results for part. in joint businesses and associates		6,551	85		5,854	101		1,741	19		2,425	39
Impairment of PPE, intangible assets and inventories		(10,351)	(139)		(3,713)	(62)		(6,035)	(72)		(3,713)	(62)
Operating income		18,198	243		22,261	462		2,756	32		1,616	35
RECPAM		-	-		-	-		5	-		4	-
Financial income		686	9		1,027	23		157	1		851	2
Financial costs		(12,528)	(177)		(9,005)	(187)		(3,932)	(50)		(2,498)	(40)
Other financial results		6,131	84		8,680	175		2,774	36		4,064	66
Financial results, net		(5,711)	(84)		702	11		(996)	(13)		2,421	28
Profit before tax		12,487	159		22,963	473		1,760	19		4,037	63
Income tax		(3,122)	(35)		4,531	130		(391)	(1)		(1,633)	(33)
Net income for continuing operations		9,365	124		27,494	603		1,369	18		2,404	30
Net income (loss) from discontinued operations		(49,333)	(592)		11,813	197		(47,568)	(569)		(1,043)	(20)
Net income (loss) for the period		(39,968)	(468)		39,307	800		(46,199)	(551)		1,361	10
Attributable to the owners of the Company		(31,447)	(367)		33,012	692		(38,603)	(463)		1,149	9
Continuing operations		9,952	132		27,057	593		2,796	24		(4,806)	24
Discontinued operations		(41,399)	(499)		5,955	99		(41,399)	(487)		5,955	(15)
Attributable to the non-controlling interests		(8,521)	(101)		6,295	108		(7,596)	(88)		212	1
Net income (loss) per share attributable to shareholders		(20.40)	(0.24)		18.40	0.39		(26.53)	(0.32)		0.68	0.01
From continuing operations		6.46	0.09		15.08	0.33		1.92	0.02		(2.84)	0.01
From discontinued operations		(26.85)	(0.32)		3.32	0.06		(28.45)	(0.33)		3.51	(0.01)
Net income (loss) per ADR attributable to shareholders		(509.97)	(5.95)		459.90	9.64		(663.30)	(7.96)		16.95	0.14
From continuing operations		161.39	2.14		376.94	8.26		48.04	0.41		(70.88)	0.36
From discontinued operations		(671.36)	(8.09)		82.96	1.38		(711.35)	(8.37)		87.83	(0.22)
Average outstanding common shares		1,541.6			1,794.5			1,455.0			1,695.1
Outstanding common shares by the end of period		1,453.9			1,682.1			1,453.9			1,682.1

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 Q4 20 results on Friday, March 12, 2021, at 10:00 a.m. Eastern Standard Time/12:00 p.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/Pampa4Q20VideoCall. 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:

- ri.pampaenergia.com/en - www.cnv.gov.ar

- www.sec.gov - www.bolsar.com

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] For further information, see section 1.4 of the Earnings Release.
^[3] It does not include discontinued operations for US$1,085 million. 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' (2020: US$400 million and Q4 20: US$94 million).
^[4] It 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.
^[5] It includes discontinued operations. 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 further information, see section 3 of the Earnings Release.
^[6] The financial information presented in this document for Q4 20 and Q4 19 quarters are based on FS prepared according to IFRS in force in Argentina, corresponding to the fiscal years of 2020 and 2019, and the nine-months period ended on September 30, 2020 and 2019, respectively.

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SOURCE Pampa Energia S.A.

FAQ

What were Pampa Energía's 2020 earnings results?

Pampa Energía reported a consolidated loss of US$367 million for 2020, down from a profit of US$692 million in 2019.

How did Pampa's revenue change in Q4 2020?

In Q4 2020, Pampa's net revenues were US$285 million, a 10% decline from US$318 million in Q4 2019.

What is the outlook for Pampa following its 2020 results?

The outlook remains cautious due to a significant loss in 2020 and a 20% reduction in revenues, with ongoing impacts from the discontinued electricity distribution operations.

What impact did the sale of Edenor have on Pampa's 2020 results?

Edenor's sale resulted in its classification as discontinued operations, affecting the overall revenue and EBITDA figures reported for 2020.