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

Rhea-AI Summary

Pampa Energía S.A. reported Q3 2020 results, revealing consolidated net revenues of US$592 million, a 2% increase from Q3 2019. However, the nine-month revenue dropped 23% to US$1,651 million, mainly due to a tariff freeze and lower sales. Adjusted EBITDA decreased 20% to US$583 million. The company recorded a significant 86% decline in net profit for the nine-month period, totaling US$96 million. The balance sheet showed total assets of US$5,544 million and total equity of US$2,347 million.

Positive

• Q3 2020 net revenues increased 2% to US$592 million, driven by new power generation units.
• Power generation reached 4,000 GWh from 15 power plants in Q3 2020.
• Consolidated adjusted EBITDA was US$234 million in Q3 2020, with minor decreases.

Negative

• Nine-month consolidated net revenues fell 23% to US$1,651 million due to tariff freeze and lower hydrocarbon prices.
• Adjusted EBITDA decreased 20% for the nine-month period, totaling US$583 million.
• Net profit dropped 86% to US$96 million for the nine-month period, influenced by lower operating margins.

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:

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

ü  www.sec.gov ü  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] 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.

 

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SOURCE Pampa Energia S.A.

FAQ

What were Pampa Energía's revenues for Q3 2020?

Pampa Energía reported revenues of US$592 million for Q3 2020.

How did Pampa Energía's nine-month revenue change compared to 2019?

The nine-month revenue for Pampa Energía decreased by 23%, totaling US$1,651 million.

What was Pampa Energía's net profit for the nine-month period ended September 30, 2020?

Pampa Energía's net profit for the nine-month period was US$96 million, an 86% decline from the previous year.

What factors contributed to the decrease in Pampa Energía's nine-month revenues?

The decrease in revenue was mainly due to a tariff freeze, lower gas sales, and decreased hydrocarbon prices.

What was Pampa Energía's consolidated adjusted EBITDA for the nine-month period?

The consolidated adjusted EBITDA for the nine-month period was US$583 million, a 20% decline from the previous year.