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Pampa Energía announces results for the fiscal year and quarter ended on December 31, 2016

BUENOS AIRES, Argentina, March 14, 2017 /PRNewswire/ -- Pampa Energía S.A. (NYSE: PAM; Buenos Aires Stock Exchange: PAMP), the largest independent energy integrated company in Argentina, that through its subsidiaries participates in the electricity and oil and gas value chain, announces the results for the fiscal year and quarter ended on December 31, 2016. All figures are stated in Argentine Pesos and have been prepared in accordance with International Financial Reporting Standards.

Main Results for the Fiscal Year 2016 ('FY 2016')

In the fiscal year 2016, Pampa's figures consolidate former Petrobras Argentina's results between August and including October, and shown merged as of November.

Consolidated sales revenues of AR$31,295 million[1] for the fiscal year ended on December 31, 2016, higher than the AR$7,106 million for the same period of 2015, primarily explained by the addition as of August 2016 of Petrobras Argentina. The net sales increased AR$2,206 million in power generation, AR$9,277 million in electricity distribution, AR$7,091 million in oil and gas, AR$6,550 million in refining and distribution, AR$2,507 million in petrochemicals and AR$26 million in holding and others segment, partially offset by higher eliminations from intersegment sales for AR$3,468 million.

Consolidated adjusted EBITDA[2] of AR$7,344 million for the fiscal year ended on December 31, 2016, compared to a AR$4,079 million for the same period of 2015, mainly due to increases of AR$734 million in power generation, AR$4,637 million in oil and gas, AR$113 million in petrochemicals and AR$122 million in intersegment eliminations, partially offset by decreases of AR$1,132 million in electricity distribution, AR$102 million in refining and distribution and AR$1,108 million in holding and others segment.

Consolidated Loss of AR$252 million during the fiscal year ended on December 31, 2016, of which AR$11 million is attributable to the owners of the Company, below the gain of AR$3,065 million attributable to the owners of the Company in the same period of 2015, mainly explained by reported losses in electricity distribution (AR$1,147 million), petrochemicals (AR$89 million) and holding and others (AR$674 million), partially offset by reported profits in power generation (AR$1,045 million), oil and gas (AR$627 million), refining and distribution (AR$106 million) and intersegment eliminations (AR$121 million).

Main Results for the Fourth Quarter of 2016 ('Q4 16')[3]:

During Q4 16, Pampa's figures consolidate former Petrobras Argentina's results during October, and shown merged as of November.

Consolidated sales revenues of AR$13,015 million for the quarter ended on December 31, 2016, compared to AR$1,791 million for the fourth quarter 2015 ('Q4 15'), mainly explained by increases of AR$1,099 million in power generation, AR$3,070 million in electricity distribution, AR$3,547 million in oil and gas, AR$3,825 million in refining and distribution, AR$1,592 million in petrochemicals and AR$1 million in holding and others segment, partially offset by higher eliminations from intersegment sales of AR$1,910 million.

Consolidated adjusted EBITDA of AR$4,184 million for the quarter ended on December 31, 2016, compared to an adjusted EBITDA of AR$1,479 million for Q4 15, mainly due to increases of AR$326 million in power generation, AR$944 million in electricity distribution, AR$2,248 million in oil and gas segment, AR$70 million in petrochemicals and AR$100 million in intersegment eliminations, partially offset by reductions of AR$371 million in refining and distribution and AR$613 million in holding and others.

Consolidated gain of AR$1,292 million for the quarter ended on December 31, 2016, of which AR$982 million are attributable to the owners of the Company, AR$1,080 million less compared to the gain of AR$2,062 million attributable to the owners of the Company in the Q4 15, explained by reported losses in our segments of refining and distribution (AR$109 million), petrochemicals (AR$118 million), partially offset by reported earnings in our segments of power generation (AR$439 million), electricity distribution (AR$214 million), oil and gas (AR$29 million), holding and others (AR$427 million) and intersegment eliminations (AR$100 million).

Consolidated Balance Sheet

(As of December 31, 2016 and 2015, in millions of Argentine Pesos)



As of 12.31.16

As of 12.31.15

ASSETS



Participation in joint businesses

3,699

224

Participation in associates

787

123

Property, plant and equipment

41,090

14,509

Intangible assets

2,014

734

Biological assets

13

2

Other assets

742

2,578

Financial assets with a results changing fair value

62

-

Deferred tax assets

1,232

52

Trade receivable and other credits

4,469

1,229

Total non-current assets

54,108

19,451




Inventories

3,360

225

Other Assets

1

-

Financial assets with a results changing fair value

4,188

4,081

Investments at amortized cost

23

-

Financial derivatives

13

-

Trade receivable and other credits

14,144

4,876

Cash and cash equivalents

1,421

517

Total current assets

23,150

9,699




Non-current assets held for sale

19

-




Total assets

77,277

29,150





As of 12.31.16

As of 12.31.15

EQUITY



Share capital

1,938

1,696

Share premium and other reserves

4,963

1,231

Statutory reserve

232

51

Voluntary reserve

3,862

978

Retained earnings

(11)

3,065

Other comprehensive result

70

(31)

Equity attributable to
owners of the parent

11,054

6,990




Non-controlling interests

3,020

1,391




Total equity

14,074

8,381




LIABILITIES



Accounts payable and other liabilities

5,336

2,699

Borrowings

15,286

6,685

Deferred revenues

200

154

Salaries and social security payable

94

80

Defined benefit plan obligations

921

264

Deferred tax liabilities

3,796

592

Income tax and minimum expected profit tax liability

934

272

Tax payable

306

128

Provisions

6,267

313

Total non-current liabilities

33,140

11,187




Accounts payable and other liabilities

12,867

6,639

Borrowings

10,686

1,308

Deferred income

1

1

Salaries and social security payable

1,745

887

Defined benefit plan obligations

112

46

Income tax and minimum expected profit tax liability

1,454

139

Tax payable

2,392

473

Financial derivatives

-

18

Provisions

806

71

Total current liabilities

30,063

9,582




Total liabilities

63,203

20,769




Total liabilities and equity

77,277

29,150

 

Consolidated Income Statement

(For the fiscal year and quarter ended on December 31, 2016 and 2015, in millions of Argentine Pesos)




Full Year


4thQuarter












2016


2015


2016


2015

Sales revenue


31,295


7,106


13,015


1,791

Cost of sales


(25,136)


(7,038)


(9,615)


(1,875)










Gross profit


6,159


68


3,400


(84)










Selling expenses


(2,952)


(973)


(1,250)


(297)

Administrative expenses


(3,676)


(1,221)


(1,328)


(425)

Exploration expenses


(135)


(3)


(59)


(3)

Other operating income


2,854


941


829


611

Other operating expenses


(2,253)


(769)


(1,136)


(335)

Recovery of property, plant and equipment impairment


-


25


299


-

Results for participation in joint businesses


105


9


5


(37)

Results for participation in associates


7


(10)


-


(8)

Results for sale of companies' stakes


480


-


-


-










Operating income before higher cost recognition and SE Res. No. 32/15


589


(1,933)


760


(578)










Income Recognition - Injunction in force Note MEyM No. 2016-04484723


1,126


-


1,126


-

Income Recognition on account of the RTI – SE Res. No. 32/15


419


5,025


0


1,215

Higher Cost Recognition – SE Res. No. 250/13 and subsequent Notes


82


551


-


365










Operating income


2,216


3,643


1,886


1,002










Financial income


893


336


410


140

Financial costs


(4,296)


(1,257)


(1,257)


(561)

Other financial results


(163)


1,714


(320)


1,529

Financial results, net


(3,566)


793


(1,167)


1,108










Profit before tax


(1,350)


4,436


719


2,110










Income tax and minimum expected profit tax


1,098


(587)


573


199










Net income for the period


(252)


3,849


1,292


2,309










Attributable to:









Owners of the Company


(11)


3,065


982


2,062

Non-controlling interests


(241)


784


310


247










Net income for the period attributable to the owners of the Company (AR$ per share):









Basic and diluted income per share


(0.0063)


2.2769


0.5287


1.4305










For the full version of this Results Report, please visit Pampa's Investor Relations website: www.pampaenergia.com/ir.

Information about the Conference Call

There will be a conference call to discuss Pampa and Edenor's fourth quarter 2016 results on Wednesday March 15, 2017 at 10:00 a.m. New York Time / 11:00 p.m. Buenos Aires Time.

The hosts will be Mr. Leandro Montero, CFO of Edenor and Ms. Lida Wang, Investor Relations Manager at Pampa. For those interested in participating, please dial 0-800-444-2930 in Argentina, +1 (844) 854-4411 in the United States or +1 (412) 317-5481 from any other country. Participants of the conference call should use the identification password Pampa Energía / Edenor and dial in five minutes before the scheduled time. There will also be a live audio webcast of the conference at www.pampaenergia.com/ir.

You may find additional information on the Company at:

For further information, contact:

Gustavo Mariani
Executive Vice-president

Ricardo Torres
Executive Vice-president

Mariano Batistella
Executive Director of Planning, Strategy & Affiliates

Lida Wang
Investor Relations Officer

The Pampa Energía Building, Maipú 1 (C1084AB) Ciudad de Buenos Aires, Argentina
Tel: +54 (11) 4344-6000
investor@pampaenergia.com
www.pampaenergia.com/ri


[1] Under the International Financial Reporting Standards ('IFRS'), OldelVal, Refinor, TGS and Transener are not consolidated in Pampa's income statement and balance sheet, being only its equity income shown as 'Results for participation in associates' and 'Results for participation in joint businesses'. For more information, please refer to section 3 of this Earnings Release.

[2] Adjusted consolidated EBITDA represents the consolidated results for continuing activities before net financial results, income taxes, depreciation, amortization, one-time income and expenses, and non-controlling interest, including other non-accrued collections and other adjustments related to IFRS. For more information regarding the adjustments in the EBITDA, please refer to section 3 of this Earnings Release.

[3] The financial information presented in this document for the quarters ended on December 31, 2016 and of 2015 are based on unaudited financial statements prepared according to the IFRS accounting standards in force in Argentina corresponding to the fiscal years 2016 and 2015, and the quarter ended on December 31, 2016 and of 2015 and the results corresponding to the nine-month period of 2016 and of 2015.

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