Pampa Energía announces 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.
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:
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
[email protected]
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.
