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

Rhea-AI Summary

Pampa Energía S.A. reported significant financial declines for the six-month period and quarter ending June 30, 2020. Consolidated net revenues fell 30% to US$1,059 million, primarily due to unadjusted tariffs and decreased oil and gas prices. Adjusted EBITDA also dropped 30% to US$341 million. The net income attributable to owners was US$18 million, a 97% decrease from the previous year. Power generation output was 8,070 GWh, and the company's financial operations were impacted by inflation adjustments and exchange rate fluctuations.

Positive

• Power generation output increased to 8,070 GWh.
• Electricity sales remained stable at 9,994 GWh to 3.1 million end-users.

Negative

• Consolidated net revenues decreased by 30% to US$1,059 million.
• Adjusted EBITDA fell by 30% to US$341 million.
• Net income attributable to owners of the Company dropped 97% to US$18 million.

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:

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 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.

 

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SOURCE Pampa Energia S.A.

FAQ

What were Pampa Energía's net revenues for Q2 2020?

Pampa Energía's net revenues for Q2 2020 were US$450 million, a 43% decrease from Q2 2019.

How much did Pampa Energía's adjusted EBITDA decline in the first half of 2020?

Adjusted EBITDA declined by 30% to US$341 million in the first half of 2020.

What was the decline in net income for Pampa Energía in Q2 2020?

Net income for Q2 2020 was US$4 million, a 99% decline compared to US$400 million in Q2 2019.

How did power generation change in the second quarter of 2020 for Pampa Energía?

Power generation decreased to 3,461 GWh in Q2 2020.

What were the main factors affecting Pampa Energía's revenues?

The main factors included unadjusted tariffs, termination of fuel self-procurement, and lower oil and gas prices.