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Pampa Energía Announces Results for the nine-month period and quarter ended on September 30, 2018

BUENOS AIRES, Argentina, Nov. 12, 2018 /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, 2018. All figures are stated in Argentine Pesos and have been prepared in accordance with International Financial Reporting Standards except the application of IAS 29.

Main Results for the Nine-Month Period Ended on September 30, 2018 ('9M18')1

In order to reflect the financial performance, as from 2018 and for the comparative periods, financial results, selling and administrative expenses, which used to be assigned to holding and others, will be redistributed among power generation, oil and gas and petrochemicals.

Consolidated net revenues of AR$66,028 million2, 82% higher than the AR$36,216 million for the same period of 2017 ('9M17'), explained by increases of 110% in power generation, 98% in electricity distribution, 51% in oil and gas, 38% in petrochemicals and 162% in holding and others, partially offset by 21% of higher eliminations due to intersegment sales.

  • Power Generation of 11,520 GWh from 12 power plants
  • Electricity sales of 16,520 GWh to 3 million end-users
  • Production of 45.6 thousand barrels per day of hydrocarbons
  • Sales of 267 thousand tons of petrochemical products

Consolidated adjusted EBITDA3 for continuing operations of AR$23,961 million, compared to AR$10,689 million for 9M17, mainly due to increases of AR$5,046 million in power generation, AR$4,524 million in electricity distribution, AR$1,159 million in oil and gas, AR$100 million in refining and distribution, AR$2,488 million in holding and others and lower intersegment eliminations of AR$8 million, partially offset by higher losses of AR$53 million in petrochemicals.

Consolidated loss attributable to the owners of the Company of AR$6,783 million, lower than the AR$3,094 million gain in 9M17, mainly explained by the AR$31,210 million loss accrued due to 121% of AR$ depreciation against US$ in 9M18, currency in which most of the Company's financial liabilities are denominated, whereas the FS reports in AR$, without inflation adjustment.

Main Results for the Third Quarter of 2018 ('Q3 18')4

Consolidated net revenues of AR$26,310 million, 96% higher than the AR$13,415 million for the third quarter 2017 ('Q3 17'), explained by increases of 107% in power generation, 108% in electricity distribution, 80% in oil and gas, 52% in petrochemicals and 246% in holding and others, partially offset by 41% of higher eliminations due to intersegment sales.

  • Power Generation of 3,572 GWh from 12 power plants
  • Electricity sales of 5,626 GWh to 3 million end-users
  • Production of 45 thousand barrels per day of hydrocarbons
  • Sales of 85 thousand tons of petrochemical products

Consolidated adjusted EBITDA for continuing operations of AR$9,078 million, compared to AR$4,355 million for Q3 17, mainly due to increases of AR$2,101 million in power generation, AR$1,033 million in electricity distribution, AR$567 million in oil and gas, AR$94 million in refining and distribution, AR$1,056 million in holding and others, and lower intersegment eliminations of AR$47 million, partially offset by losses of AR$175 million in petrochemicals.

Consolidated loss attributable to the owners of the Company of AR$7,135 million, lower than the AR$1,284 million gain recorded in Q3 17, mainly explained by the accrual of AR$17,438 million loss due to 43% AR$ depreciation against US$ in Q3 18.


Consolidated Balance Sheet
(As of September 30, 2018 and December 31, 2017, in millions of Argentine Pesos)

In AR$ million

As of 9.30.18

As of 12.31.17

ASSETS



Participation in joint businesses and associates

6,575

5,754

Property, plant and equipment

51,074

41,214

Intangible assets

1,560

1,586

Other assets

29

2

Financial assets at fair value with changing results

150

150

Deferred tax credits

6,317

1,306

Trade receivable and other credits

11,843

5,042

Total non-current assets

77,548

55,054

Inventories

4,551

2,326

Financial assets at fair value with changing results

23,425

14,613

Investments at amortized cost

395

25

Financial derivatives

36

4

Trade receivable and other credits

31,257

19,145

Cash and cash equivalents

5,138

799

Total current assets

64,802

36,912

Assets classified as held for sale

-

12,501

Total assets

142,350

104,467




EQUITY



Share capital

1,895

2,080

Share premium

5,838

5,818

Repurchased shares

188

3

Cost of repurchased shares

(8,446)

(72)

Statutory reserve

416

300

Voluntary reserve

8,412

5,146

Other reserves

(505)

140

Retained earnings

(6,959)

3,243

Other comprehensive result

(89)

252

Equity attributable to owners of the parent

750

16,910

Non-controlling interests

1,877

3,202

Total equity

2,627

20,112




LIABILITIES



Investments in joint ventures and associates

880

-

Accounts payable and other liabilities

7,488

6,404

Borrowings

76,536

37,126

Deferred revenues

209

195

Salaries and social security payable

144

120

Defined benefit plan obligations

1,087

992

Deferred tax liabilities

504

1,526

Income tax and minimum expected profit tax liability

979

863

Tax payable

787

366

Provisions

7,377

4,435

Total non-current liabilities

95,991

52,027

Accounts payable and other liabilities

25,220

18,052

Borrowings

11,991

5,840

Deferred income

4

3

Salaries and social security payable

1,925

2,154

Defined benefit plan obligations

101

121

Income tax and minimum expected profit tax liability

1,716

943

Tax payable

2,226

1,965

Financial derivatives

71

82

Provisions

478

798

Total current liabilities

43,732

29,958

Liabilities associated to assets classified as held for sale

-

2,370

Total liabilities

139,723

84,355




Total liabilities and equity

142,350

104,467

 

Consolidated Income Statement
(For the nine-month period and quarter ended on September 30, 2018 and 2017, in millions of Argentine Pesos)



Nine-Month Period


Third Quarter

In AR$ million


2018


2017


2018


2017

Sales revenue


66,028


36,216


26,310


13,415

Cost of sales


(40,693)


(24,656)


(16,199)


(8,935)










Gross profit


25,335


11,560


10,111


4,480










Selling expenses


(3,446)


(2,056)


(1,584)


(646)

Administrative expenses


(4,114)


(3,217)


(1,409)


(1,129)

Exploration expenses


(10)


(37)


(6)


(24)

Other operating income


4,380


2,601


634


757

Other operating expenses


(4,296)


(1,711)


(1,109)


(560)

Results for participation in joint businesses and associates


525


865


(107)


297










Operating income


18,374


8,005


6,530


3,175










Financial income


1,835


1,015


879


351

Financial costs


(5,817)


(3,855)


(2,563)


(1,336)

Other financial results


(28,307)


(1,271)


(14,966)


(566)

Financial results, net


(32,289)


(4,111)


(16,650)


(1,551)










Profit before tax


(13,915)


3,894


(10,120)


1,624










Income tax


5,521


(212)


3,585


(100)










Net income for continuing operations


(8,394)


3,682


(6,535)


1,524










Net income from discontinued operations


3,046


288


(23)


100










Net income for the period


(5,348)


3,970


(6,558)


1,624










Attributable to:









Owners of the Company


(6,783)


3,094


(7,135)


1,284

Continuing operations


(9,766)


2,824


(7,112)


1,187

Discontinued operations


2,983


270


(23)


97

Non-controlling interests


1,435


876


577


340










Net income per share attributable to the owners of the Company


(3.4120)


1.5982


(3.7660)


0.6624

Basic and diluted income per share of continuing operations


(4.9125)


1.4587


(3.7539)


0.6124

Basic and diluted income per share of discontinued operations


1.5005


0.1395


(0.0121)


0.0500











 

For the full version of the Earnings Report, please visit Pampa's Investor Relations website: ri.pampaenergia.com/en.

Information about the Conference Call

There will be a conference call to discuss Pampa's Q3 18 results on Tuesday November 13, 2018 at 10:00 a.m. Eastern Standard Time / 12:00 p.m. Buenos Aires Time.

The host will be 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' and dial in five minutes before the scheduled time. Please download the Q3 18 Conference Call Presentation from our IR website. There will also be a live audio webcast and presentation of the conference at http://bit.ly/PampaQ318Call.

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 (C1084ABA) Ciudad de Buenos Aires, Argentina
Tel: +54 (11) 4344-6000
investor@pampaenergia.com
www.pampaenergia.com/ir


1 The financial information presented in this document are based on financial statements ('FS') prepared according to the International Financial Reporting Standards ('IFRS'), except application of IAS 29 (please refer to section 1.7 of the Earnings Release). Consequently, the FS discriminates the continuing operations from the assets agreed for sale, which are reported as discontinued operations.

2 Under the IFRS, Greenwind, OldelVal, Refinor, Transener and TGS are not consolidated in Pampa's FS, being its equity income shown as 'Results for participation in associates/joint businesses'.

3 Consolidated adjusted EBITDA represents the results before net financial results, income tax and minimum notional income tax, depreciations and amortizations, non-recurring and non-cash income and expense, equity income and other adjustments from the IFRS implementation, and includes affiliates' EBITDA at ownership. For more information, see section 3 of the Earnings Release.

4 The financial information presented in this document for the quarters ended on September 30, 2018 and of 2017 are based on unaudited FS prepared according to the IFRS accounting standards in force in Argentina, except application of IAS 29 (please refer to section 1.7 of the Earnings Release) corresponding to the nine-month period of 2018 and 2017, and the six-month periods ended on June 30, 2018 and 2017, respectively.

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