6-K 1 pampr2q13_6k.htm RESULTS FOR THE SIX-MONTH PERIOD AND QUARTER ENDED ON JUNE 30TH, 2013 pampr2q13_6k.htm - Generated by SEC Publisher for SEC Filing
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
 
FORM 6-K
 
REPORT OF FOREIGN ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
SECURITIES EXCHANGE ACT OF 1934
 
For the month of August, 2013
(Commission File No. 001-34429),
 
 
PAMPA ENERGIA S.A.
(PAMPA ENERGY INC.)
 
Argentina
(Jurisdiction of incorporation or organization)
 

Ortiz de Ocampo 3302
Building #4
C1425DSR
Buenos Aires
Argentina
(Address of principal executive offices)


(Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.)

Form 20-F ___X___ Form 40-F ______

(Indicate by check mark whether the registrant by furnishing the
information contained in this form is also thereby furnishing the
information to the Commission pursuant to Rule 12g3-2(b) under
the Securities Exchange Act of 1934.)

Yes ______ No ___X___

(If "Yes" is marked, indicate below the file number assigned to the
registrant in connection with Rule 12g3-2(b): 82- .)
 
 

 

 

Buenos Aires, August 12th, 2013

 

Results for the six-month period and quarter ended on June 30th, 2013

 

Pampa Energía S.A. (‘Pampa’ or the ‘Company’) announces the results for the six-month period and quarter ended on June 30th, 2013.

 

Stock Information

Pampa Energía S.A., the largest integrated electricity company in Argentina that, through its subsidiaries, participates in the generation, transmission and distribution of electricity, announces the results for the six-month period and quarter ended on June 30th, 2013:

Consolidated sales revenues of AR$2,531.1 million1 for the six-month period ended on June 30, 2013, 21.8% lower than the AR$3,237.7 million for the same period of 2012, mainly explained by a decrease of 54.9% (AR$970.2 million) in the generation segment, partially offset by increases of 15.4% (AR$221.6 million) in distribution and 2.2% (AR$1.9 million) in holding and others segments.

Adjusted consolidated EBITDA2 of AR$(267.3) million, compared to AR$213.7 million for the same period of 2012, mainly due to decreases of AR$245.8 million in generation and AR$263.0 million in distribution, which were partially offset by increases of AR$5.3 million in the transmission segment and AR$22.5 million in holding and others.

Consolidated profit under IFRS of AR$1,120.9 million during the six-month period ended on June 30, 2013, of which a gain of AR$545.3 million are attributable to the owners of the Company, compared to a AR$147.8 million loss attributable to the owners of the Company in the same period of 2012, mainly explained by the profit of AR$609.6 million from distribution and AR$70.9 million from holding and others, partially offset by a net loss of AR$122.0 in generation and AR$13.3 million in transmission.

Buenos Aires Stock Exchange
Ticker: PAMP

New York Stock Exchange
Ticker: PAM
1 ADS = 25 ordinary shares

For further information, contact:

Ricardo Torres
CEO

Mariano Batistella
Special Projects, Strategic Planning and
Investor Relations Officer

Lida Wang
Investor Relations and
Special Projects Associate

Tel +54-11-4809-9500

investor@pampaenergia.com
www.pampaenergia.com/ri

 

 

 

1 Under the International Financial Reporting Standards (‘IFRS’), we no longer consolidate the Transmission segment, and our net income in said segment is shown in the line ‘Results for participation in joint businesses’. For more information, please refer to section 4 of this Earnings Release.

2 Adjusted consolidated EBITDA represents the consolidated results for continuing activities before net financial results, income taxes, depreciation, amortization, reserve directors options, one-time income and expenses, and non-controlling interests, including PUREE proceeds, other non-accrued collections, and other adjustments related to IFRS. For more information, please refer to section 4 of this Earnings Release.

 

Ortiz de Ocampo 3302 Edificio 4

C1425DSR Buenos Aires

Argentina

Tel +54 (11) 4809-9500

investor@pampaenergia.com

www.pampaenergia.com/ri

 1

 

 
 

 

Main Results for the Second Quarter of 20133:

Consolidated sales revenues of AR$1,138.4 million for the quarter ended on June 30, 2013, 36.4% lower than the AR$1,791.3 million for the same period of 2012, mainly explained by a decrease of 74.5% (AR$794.2 million) in the generation segment, partially offset by increases of 15.7% (AR$111.5 million) in distribution and 3.2% (AR$1.6 million) in holding and others segment.

Adjusted consolidated EBITDA of AR$(129.8) million,  AR$181.0 million lower than the same period of 2012, mainly due to decreases of AR$51.3 million in generation and AR$149.3 million in distribution, which were partially offset by increases of AR$3.2 million in the transmission segment and AR$16.4 million in holding and others.

Consolidated profit under IFRS of AR$1,726.9 million in the second quarter ended on June 30, 2013, of which a gain of AR$931.8 million are attributable to the owners of the Company, compared to a AR$100.6 million loss attributable to the owners of the Company in the same period of 2012, mainly explained by the higher costs recognition through Resolution No. 250/13, which had an impact on distribution segment recording a net profit attributable to the owners of the Company of AR$963.0 million, in addition to a profit in holding and others segment (AR$9.2 million), partially offset by net losses in generation (AR$37.3 million) and transmission (AR$3.0 million).

 

 

 

3 The financial information presented in this document for the quarters ended on June 30, 2013 and of 2012 are based on unaudited financial statements prepared according to the IFRS accounting standards in force in Argentina corresponding to the six-month periods ended on June 30, 2013 and of 2012, and the three-month periods ended on March 31, 2013 and of 2012.

 

Ortiz de Ocampo 3302 Edificio 4

C1425DSR Buenos Aires

Argentina

Tel +54 (11) 4809-9500

investor@pampaenergia.com

www.pampaenergia.com/ri

 2
 
 

 

1.     Relevant Events

1.1 |  Renewal of Instrumental Agreement for Transener and Transba

On May 13 and 20, 2013 Transener and Transba, respectively, subscribed a renewal to the Instrumental Agreement (the “Renewal Agreement”) with the Secretariat of Energy (“SE”) and the National Electricity Authority (“ENRE”), in force until December 31, 2015. The agreement mainly sets forth the recognition of a AR$786 million credit to Transener and Transba as costs variations during the period of December 1, 2010 – December 31, 2012, which have been calculated according to the costs variation index (“IVC”) foreseen in the Definitive Agreement.

Moreover, the Renewal Agreement framework set up an investment plan of AR$399 million and AR$307 million during 2013 and 2014, respectively, for Transener and Transba, subject to the collection of disbursements according to the addendas.

1.2 |  Resolution No. 95/2013: Measures Implemented by Pampa’s Generation Subsidiaries

On May 31, 2013 and as requirement for the application of Resolution No. 95/2013’s new remunerative scheme, the generation units Central Piedra Buena (“CPB”), Central Térmica Güemes (“CTG”) and Central Térmica Loma de la Lata (“CTLL”) have desisted administrative and judicial claims against the National Government, the SE and/or CAMMESA, in relation to the Generators Agreement 2008-2011 and/or related to Resolution SE No. 406/03, as well as any right to initiate or promote any new procedure under the aforementioned terms.

On June 11, 2013, the SE informed to CAMMESA the fulfillment of the necessary requirements and as of the issuance date of this Earnings Release, said subsidiaries accrued in the financial statements the new remunerative scheme as from February 2013.

1.3 |  Central Térmica Loma de la Lata (‘CTLLL’)’s Expansion Project

1.3.1   Restart of Commissioning of Steam Turbine

In relation to the relevant event dated November 16, 2012 related to certain technical problems in the Steam Turbine unit at CTLL and which forced the Steam Turbine unit out of operation, on the date of June 24, 2013 such technical problems have been solved. Thus, since then the Steam Turbine is again under commissioning.

1.3.2   Compensation Claim to CTLL’s Insurance Companies

As of the release of this Earnings Report, CTLL has collected the amount of AR$92.2 million as advance payment to be taken into account for future insurance compensation, in relation to the accident occurred on November 14, 2012.

 

 

Ortiz de Ocampo 3302 Edificio 4

C1425DSR Buenos Aires

Argentina

Tel +54 (11) 4809-9500

investor@pampaenergia.com

www.pampaenergia.com/ri

 3
 
 

 

1.3.3   Registration of CTLL’s Expansion Project Under Clean Development Mechanism (“CDM”), Sponsored by the United Nations Framework Convention on Climate Change (“UNFCCC”)

On May 24, 2013, CTLL was notified by the Secretariat of UNFCCC that its closing to combined cycle project was registered under CDM, in effect since March 11, 2013. Said registration would allow CTLL to annually issue around 650,000 Certificates of Emissions Reductions (“CERs”), during 7 years, renewable until fulfilling a 21-year period.

1.4 |  ENRE’s Approval to Acquisitions of EMDERSA and AESEBA

On August 5, 2013, Edenor was notified of ENRE’s Resolution No. 216/2013, in which the Electricity Regulator declared as fulfilled the due proceedings foreseen in Law No. 24,065, section 32, referred to the acquisitions of EMDERSA, AESEBA and its corresponding subsidiaries by Edenor, dated March 2011. Thus, ENRE formally authorized said acquisitions.

1.5 |  Debt Operations of Our Subsidiaries

1.5.1   Issuance of Bond Notes (‘ONs’) of Petrolera Pampa

On June 26, 2013, under the global bond notes debt Program (simple, non-convertible to equity) up to an amount of US$100 million or its equivalent in other currencies, Petrolera Pampa issued AR$254.8 million, which accrue interest at Badlar plus 3%. Principal will be repaid in a single bullet payment 36 months as from the date of issuance and interest is payable on a quarterly basis.

 

 

 

Ortiz de Ocampo 3302 Edificio 4

C1425DSR Buenos Aires

Argentina

Tel +54 (11) 4809-9500

investor@pampaenergia.com

www.pampaenergia.com/ri

 4
 
 

 

2.     Financial Highlights

2.1 |  Consolidated Balance Sheet (AR$mm)

 

As of 06.30.13

As of 12.31.12

ASSETS

    

Property, plant and equipment

6,376.9

6,016.9

Intangible assets

931.6

1,808.5

Biological assets

2.0

2.0

Participation in joint businesses

180.3

192.3

Participation in associates

136.7

132.5

Financial assets with a results changing fair value

357.3

303.8

Deferred tax assets

180.5

87.5

Trade receivable and other credits

281.9

422.1

Total non-current assets

8,447.1

8,965.6

     

Inventories

81.4

103.3

Biological assets

0.1

0.5

Assets on construction

-

84.5

Financial assets with a results changing fair value

109.4

113.4

Trade receivable and other credits

2,568.9

1,541.5

Cash and cash equivalents

702.5

279.9

Total current assets

3,462.3

2,123.1

     

Assets classified as held for sale

286.7

235.2

     

Total assets

12,196.1

11,323.9

     

 

As of 06.30.13

As of 12.31.12

EQUITY

    

Share capital

1,314.3

1,314.3

Share premium

246.6

1,018.4

Director's options reserve

254.9

250.4

Retained earnings

545.3

(771.8)

Other comprehensive results

(10.8)

(10.8)

Equity attributable to owners of the parent

2,350.2

1,800.5

     

Non-controlling interests

1,040.7

529.8

     

Total equity

3,390.9

2,330.3

     

LIABILITIES

    

Accounts payable and other liabilities

1,155.6

2,231.2

Borrowings

2,705.1

2,218.5

Deferred revenues

34.4

264.4

Salaries and social security payable

19.3

17.5

Defined benefit plan obligations

97.0

120.9

Deferred tax liabilities

477.9

628.9

Tax payable

42.0

46.8

Provisions

80.8

85.5

Total non-current liabilities

4,612.1

5,613.7

     

Accounts payable and other liabilities

2,533.7

1,688.0

Borrowings

646.8

790.9

Salaries and social security payable

372.0

447.9

Defined benefit plan obligations

10.4

21.8

Tax payable

417.0

263.8

Provisions

7.8

11.7

Total current liabilities

3,987.7

3,224.1

     

Liabilities classified as held for sale

205.4

155.8

     

Total liabilities

8,805.2

8,993.6

     

Total liabilities and equity

12,196.1

11,323.9

 

 

 

Ortiz de Ocampo 3302 Edificio 4

C1425DSR Buenos Aires

Argentina

Tel +54 (11) 4809-9500

investor@pampaenergia.com

www.pampaenergia.com/ri

 5
 
 

 

2.2 |  Consolidated Income Statements (AR$mm)

 

  

6-Month Period

  

2nd Quarter

 

  

 

 

 

 

 

 

 

 

  

2013

 

2012

  

2013

 

2012

Sales revenue

  

2,531.1

  

3,237.7

  

1,138.4

  

1,791.3

Cost of sales

  

(2,707.3)

  

(2,992.5)

  

(1,213.8)

  

(1,729.3)

Gross profit

 

(176.3)

 

245.2

 

(75.4)

 

61.9

     

 

      

 

  

Selling expenses

  

(290.5)

  

(191.1)

  

(163.1)

  

(108.0)

Administrative expenses

  

(265.7)

  

(210.2)

  

(145.4)

  

(108.0)

Other operating income

  

163.2

  

152.6

  

120.1

  

113.3

Other operating expenses

  

(83.4)

  

(79.8)

  

(46.9)

  

(45.3)

Higher Costs Recognition – Res. No. 250/13

  

2,212.6

  

-

  

2,212.6

  

-

Results for participation in joint businesses

  

(13.2)

  

(10.3)

  

(3.0)

  

(5.1)

Results for participation in associates

  

4.2

  

(0.2)

  

(1.4)

  

(2.3)

Operating income

 

1,550.9

 

(93.9)

 

1,897.5

 

(93.5)

     

 

      

 

  

Financial income

  

241.1

  

64.3

  

207.3

  

45.1

Financial costs

  

(275.7)

  

(228.4)

  

(100.0)

  

(114.9)

Other financial results

  

(238.2)

  

(109.2)

  

(175.9)

  

(80.0)

Financial results, net

  

(272.8)

  

(273.2)

  

(68.6)

  

(149.8)

     

 

      

 

  

Profit before tax

 

1,278.2

 

(367.1)

 

1,828.9

 

(243.3)

     

 

      

 

  

Income tax and minimum expected profit tax

  

(37.2)

  

11.8

  

(110.0)

  

(0.7)

     

 

      

 

  

Net income for continuing operations

 

1,240.9

 

(355.3)

 

1,718.9

 

(244.0)

     

 

      

 

  

Discontinued operations

  

(120.0)

  

55.5

  

8.0

  

15.5

     

 

      

 

  

Net income for the period

 

1,120.9

 

(299.9)

 

1,726.9

 

(228.5)

     

 

      

 

  

Attributable to:

                

Owners of the Company

  

545.3

  

(147.8)

  

931.8

  

(100.6)

Continuing operations

  

627.7

  

(175.4)

  

927.6

  

(107.2)

Discontinued operations

  

(82.5)

  

27.6

  

4.2

  

6.6

Non-controlling interests

  

575.6

  

(152.1)

  

795.1

  

(127.9)

     

 

      

 

  

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

                

Basic and diluted income for continuing operations per share

  

0.4776

  

(0.1335)

  

0.7058

  

(0.0816)

Diluted income for continuing operations per share (AR$ per share)

  

(0.0627)

  

0.0210

  

0.0032

  

0.0050

Basic and diluted income for discontinued operations per share

 

(0.0627)

 

0.0193

 

0.0032

 

0.0046

 

 

 

Ortiz de Ocampo 3302 Edificio 4

C1425DSR Buenos Aires

Argentina

Tel +54 (11) 4809-9500

investor@pampaenergia.com

www.pampaenergia.com/ri

 6
 
 

 

3.     Operations’ Summary

3.1 |  Generation Segment

The following table shows the performance of Pampa’s generation segment assets:

  Hydroelectric  Thermal  Total
Summary of Electricity Generation Assets HINISA HIDISA CTG1 CTLLL2 CPB CTP
Installed Capacity (MW) 265 388 361 553 620 30 2,217
Market Share 0.9% 1.2% 1.2% 1.8% 2.0% 0.1% 7.1%
 
Six-Month Period              
Net Generation 6M13 (GWh) 291 190 810 583 866 74 2,813
Market Share 0.5% 0.3% 1.3% 0.9% 1.4% 0.1% 4.5%
Sales 6M13(GWh) 436 323 1,096 862 1,134 74 3,925
 
Net Generation 6M 12 (GWh) 344 219 769 1,682 1,652 53 4,718
Variation Net Generation 6M13 - 6M12 -15.3% -13.2% +5.3% -65.3% -47.6% +39.5% -40.4%
Sales 6M12 (GWh) 489 363 958 1,717 1,989 53 5,569
 
Average Price 6M13 (AR$ / MWh) 196.6 221.4 198.9 220.2 178.0 396.2 202.9
Average Gross Margin 6M13 (AR$ / MWh) 57.0 37.9 57.3 (23.8) (30.8) 195.8 15.0
Average Gross Margin 6M12 (AR$ / MWh) 66.0 51.4 53.9 113.7 4.5 218.1 57.1
 
Second Quarter              
Net Generation 2Q13 (GWh) 90 54 416 436 466 36 1,497
Market Share 0.3% 0.2% 1.4% 1.4% 1.5% 0.1% 4.9%
Sales 2Q13(GWh) 157 122 559 542 599 36 2,015
 
Net Generation 2Q12 (GWh) 122 59 312 787 935 22 2,237
Variation Net Generation 2Q13 - 2Q12 -26.3% -8.7% +33.4% -44.7% -50.2% +65.5% -33.1%
Sales 2Q12 (GWh) 187 133 323 822 1,083 22 2,570
 
Average Price 2Q13 (AR$ / MWh) 259.3 295.2 163.3 194.2 -26.4 401.5 134.9
Average Gross Margin 2Q13 (AR$ / MWh) 41.1 19.9 67.2 58.4 -23.2 176.4 35.0
Average Gross Margin 2Q12 (AR$ / MWh) 75.5 45.6 58.2 122.3 1.6 272.0 57.2
 

Note: Gross Margin before amortization and depreciation.

¹ CTG includes results for Powerco. ² The installed capacity of CTLLL includes 178 MW of the combined cycle that began commercial operations on November 1, 2011, for 165 MW.

The electricity generation for the second quarter of 2013 was 33.1% lower than the same period of 2012, mainly due to: (i) the out of service since November 2012 in CTLL’s steam turbine, caused by technical problems and the consequently open cycle generation mode for gas turbines, which has a lesser dispatch priority in the system; (ii) lower availability in CPB due to technical problems in both turbines, in addition to a seasonal maintenance; and (iii) lower dispatch in hydros, especially in HINISA, due to extension of 2013 watering period, which compared to the same period of 2012 said period was shorter.

Such generation reductions were partially offset by a higher electricity dispatch compared to 2Q12, due to: (i) during 2Q12, CTG was forced out of operations by technical problems, and (ii) CTP had a higher dispatch requirement to fulfill zone’s demand.

 

 

Ortiz de Ocampo 3302 Edificio 4

C1425DSR Buenos Aires

Argentina

Tel +54 (11) 4809-9500

investor@pampaenergia.com

www.pampaenergia.com/ri

 7
 
 

 

3.2 |  Distribution Segment

The following table shows a summary of the electricity sales and clients of Edenor:

              Variation
 Type of Customer  2013  2012  % GWh % Clients
In GWh Part. % Clients In GWh Part. % Clients
Six-Month Period                
Residential 4,166 40% 2,397,271 4,127 41% 2,367,816 0.9% 1.2%
Commercial 1,816 17% 344,646 1,714 17% 341,472 6.0% 0.9%
Industrial 1,726 17% 6,261 1,703 17% 6,105 1.4% 2.6%
Wheeling System 2,168 21% 728 2,100 21% 697 3.2% 4.4%
Others                
Public Lighting 348 3% 22 335 3% 22 3.8% 0.0%
Shantytowns and Others 198 2% 380 192 2% 378 3.1% 0.5%
Total 10,422 100% 2,749,308 10,170 100% 2,716,490 2.5% 1.2%
 
Second Quarter                
Residential 2,136 41% 2,397,271 1,973 40% 2,367,816 8.3% 1.2%
Commercial 909 17% 344,646 826 17% 341,472 10.0% 0.9%
Industrial 844 16% 6,261 831 17% 6,105 1.6% 2.6%
Wheeling System 1,071 20% 728 1,037 21% 697 3.3% 4.4%
Others                
Public Lighting 194 4% 22 188 4% 22 3.1% 0.0%
Shantytowns and Others 117 2% 380 107 2% 378 10.1% 0.5%
Total 5,272 100% 2,749,308 4,961 100% 2,716,490 6.3% 1.2%

The electricity sold in GWh during the second quarter of 2013 rose by 6.2% compared to the same period of 2012, as well as the number of clients of Edenor which raised by 1.2%.

We highlight that the sales of electricity of Emdersa and Eden are not included since those companies were sold (or currently available for sale) and are no longer part of our distribution operations.

 

 

Ortiz de Ocampo 3302 Edificio 4

C1425DSR Buenos Aires

Argentina

Tel +54 (11) 4809-9500

investor@pampaenergia.com

www.pampaenergia.com/ri

 8
 
 

 

4.     Analysis of the Second Quarter 2013 Results Compared to the Same Period of 2012

Consolidated sales revenues of AR$1,138.4 million for the quarter ended on June 30, 2013, 36.4% lower than the AR$1,791.3 million for the same period of 2012, mainly explained by a decrease of 74.5% (AR$794.2 million) in the generation segment, partially offset by increases of 15.7% (AR$111.5 million) in distribution and 3.2% (AR$1.6 million) in holding and others segment.

Adjusted consolidated EBITDA of AR$(129.8) million,  AR$181.0 million lower than the same period of 2012, mainly due to decreases of AR$51.3 million in generation and AR$149.3 million in distribution, which were partially offset by increases of AR$3.2 million in the transmission segment and AR$16.4 million in holding and others.

Consolidated profit under IFRS of AR$1,726.9 million in the second quarter ended on June 30, 2013, of which a gain of AR$931.8 million are attributable to the owners of the Company, compared to a AR$100.6 million loss attributable to the owners of the Company in the same period of 2012, mainly explained by the higher costs recognition through Resolution No. 250/13, which had an impact on distribution segment recording a net profit attributable to the owners of the Company of AR$963.0 million, in addition to a lower net loss in transmission segment (AR$3.0 million), partially offset by a net loss in generation (AR$37.3 million) and a lower profit in holding and others (AR$9.2 million).

Adjusted Consolidated EBITDA Calculation

From January 1, 2012, and according to the CNV requirements for companies in the public offering either by their capital or their bonds, Pampa Energía and certain subsidiaries’ financial statements are published under IFRS standards. The following table shows the calculation of the Adjusted Consolidated EBITDA:

In AR$mm

  

6M13

 

6M12

  

2Q13

  

2Q12

Consolidated operating income

  

1,550.9

 

(93.9)

  

1,897.5

  

(93.5)

Consolidated depreciations and amortizations

  

182.8

 

190.3

  

93.8

  

94.9

Consolidated EBITDA under IFRS standards

 

1,733.8

 

96.4

 

1,991.3

 

1.4

             

 

 

Adjustments from generation segment:

                

CTLL's collection from insurance compensation

  

(40.5)

 

(133.8)

  

(3.1)

  

(101.2)

Revenue recognition from Isolux's CTLL project

  

(84.8)

 

-

  

(84.8)

  

-

Adjustments from transmission segment:

                

Instrumental Agreement

  

20.7

 

9.2

  

3.6

  

5.1

Consolidation effects from participation in joint businesses

  

21.1

 

22.4

  

13.2

  

10.6

Operating result from transmission segment

  

(31.0)

  

(29.4)

  

(9.5)

  

(13.3)

Depreciations and amortizations from transmission segment

  

21.0

  

19.3

  

10.7

  

8.9

Results for Fourth Line Project

  

17.9

  

22.1

  

8.9

  

9.8

Results for participation in joint businesses

  

13.2

 

10.3

  

3.0

  

5.1

Adjustments from distribution segment:

                

PUREE penalty system

  

279.9

 

204.5

  

150.2

  

125.8

Delay charges

  

19.3

 

14.8

  

11.1

  

7.2

Higher Costs Recognition – Res. No. 250/13

  

(2,212.6)

 

-

  

(2,212.6)

  

-

Adjustments from holding and others segment:

                

Results for participation in associates

  

(4.2)

 

0.2

  

1.4

  

2.3

             

 

 

Consolidated adjusted EBITDA

 

(267.3)

 

213.7

 

(129.8)

 

51.2

 

 

 

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4.1 |  Analysis of Generation Segment

 

6-Month Period

2nd Quarter

Generation Segment, Consolidated (AR$mm)

2013

2012

∆ %

2013

2012

∆ %

Sales revenue

795.8

1,766.0

-54.9%

271.2

1,065.4

-74.5%

Cost of sales

(780.8)

(1,513.2)

-48.4%

(225.7)

(955.5)

-76.4%

             

Gross profit

15.0

252.8

-94.1%

45.5

109.9

-58.6%

             

Selling expenses

(24.6)

(27.0)

-9.0%

(12.2)

(15.5)

-21.2%

Administrative expenses

(64.5)

(66.7)

-3.3%

(33.1)

(41.1)

-19.6%

Other operating income

142.5

136.8

+4.2%

103.9

102.8

+1.1%

Other operating expenses

(19.7)

(13.7)

+44.0%

(12.9)

(6.2)

+108.5%

             

Operating income

48.6

282.2

-82.8%

91.2

149.8

-39.2%

             

Finance income

29.3

34.5

-15.1%

13.8

21.1

-34.3%

Finance costs

(106.5)

(108.6)

-2.0%

(61.4)

(50.5)

+21.5%

Other financial results

(183.2)

(93.5)

+96.0%

(137.9)

(93.6)

+47.3%

             

Profit before tax

(211.8)

114.6

NA

(94.3)

26.8

NA

             

Income tax and minimum expected profit tax

83.0

(34.1)

NA

42.1

(5.6)

NA

             
             

Total income for the period

(128.7)

80.4

NA

(52.1)

21.2

NA

             

Attributable to:

            

Owners of the Company

(122.0)

80.1

NA

(37.3)

32.9

NA

Non-controlling interests

(6.8)

0.3

NA

(14.8)

(11.8)

+25.8%

             

Adjusted EBITDA

(29.3)

216.6

NA

30.3

81.6

-62.8%

·         During the second quarter of 2013, the gross margin from our generation segment recorded a gross profit of AR$45.5 million, a decrease of 58.6% compared to the same period in 2012, mainly due to CTLL’s steam turbine out of service, forced unavailability in CPB and minor dispatch in our hydraulic units.

·         Selling and administrative expenses fell AR$11.4 million during second quarter of 2013 compared to the same period of 2012, due to the reallocation of expenditures between segments.

·         In other operating income, during 2Q13 we recorded AR$3.1 million as the amount recovered from insurance companies related to the accident in CTLL, compared to AR$101.2 during the same period of 2012, as well as the accrual of the last milestone payment to the contractor of CTLL’s expansion works during 2Q13, for AR$84.8 million.

·         The higher AR$62.4 million losses in net financial results compared to 2Q12 mainly responds to a higher net exchange rate differences caused by devaluation of local currency against US Dollar, currency which CTLL and part of CTG’s Bond Notes are denominated and to the adjustment of the consolidated CAMMESA’s credits at present value, mainly in CPB (AR$19.3 million) and our hydro units (AR$64.4 million).

·         The adjusted EBITDA from our generation segment does not include the amount recovered from insurance companies, nor the accrual of the last milestone payment to the CTLL’s contractor.

 

 

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4.2 |  Analysis of Transmission Segment

 

6-Month Period

2nd Quarter

Transmission Segment, Consolidated (AR$mm)

2013

2012

∆ %

2013

2012

∆ %

Sales revenue

161.7

123.7

+30.7%

95.9

62.5

+53.4%

Cost of sales

(158.8)

(124.7)

+27.3%

(85.8)

(61.1)

+40.5%

             

Gross profit

2.9

(1.1)

NA

10.1

1.4

NA

             

Administrative expenses

(36.8)

(29.1)

+26.4%

(19.3)

(14.4)

+33.9%

Other operating income

1.0

0.9

+14.9%

(0.3)

(0.3)

-3.1%

Other operating expenses

(0.0)

(0.0)

-29.3%

(0.0)

(0.0)

+8.8%

             

Operating income

(33.0)

(29.4)

+12.4%

(9.5)

(13.3)

-28.3%

             

Finance income

57.1

36.7

+55.5%

35.5

18.7

+89.9%

Finance costs

(29.3)

(25.9)

+13.4%

(15.0)

(13.3)

+12.8%

Other financial results

(26.8)

(7.3)

+266.7%

(15.4)

(4.5)

+242.0%

             

Profit before tax

(32.1)

(25.8)

+24.1%

(4.4)

(12.4)

-64.4%

             

Income tax and minimum expected profit tax

10.7

8.3

+29.1%

1.4

3.9

-62.6%

             

Net income for continuing operations

(21.4)

(17.5)

+21.8%

(3.0)

(8.5)

-65.2%

             

Discontinuated operations

(1.6)

(0.9)

+76.3%

(0.9)

(0.5)

+67.1%

Adjustment for non-controlling participation in joint businesses

9.7

8.0

+22.0%

0.8

3.8

-78.0%

             

Total income for the period

(13.3)

(10.5)

+26.3%

(3.0)

(5.3)

-42.5%

             

Attributable to:

            

Owners of the Company

(13.3)

(10.5)

+26.3%

(3.0)

(5.3)

-42.5%

Non-controlling interests

-

-

NA

-

-

NA

             

Adjusted EBITDA

26.6

21.3

+25.0%

13.8

10.6

+30.1%

·         The second quarter of 2013 includes sales for AR$31.5 million, which corresponds to the application of Instrumental Agreements signed by SE and ENRE, compared to AR$5.6 million in the same period of 2012.

·         The loss in the operating income of our transmission segment decreased by 28.3% compared to the second quarter of 2012, mainly due to a higher recognition of retroactive costs explained above, partially offset by a raise in labor costs and higher operating costs.

·         Adjusted EBITDA includes the difference between collected amounts and accrued sales corresponding to CAMMESA’s credit regarding the Instrumental Agreement for AR$3.6 million for the second quarter of 2013 vs. AR$5.1 million in the same period of 2012, plus AR$8.9 million for the Fourth Line Project, previously recorded in sales and currently under IFRS standards, in the line of financial results, compared to AR$9.8 million in the same period of 2012.

 

 

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4.3 |  Analysis of Distribution Segment

 

6-Month Period

2nd Quarter

Distribution Segment, Consolidated (AR$mm)

2013

2012

∆ %

2013

2012

∆ %

Sales revenue

1,656.8

1,435.2

+15.4%

820.4

708.9

+15.7%

Cost of sales

(1,885.7)

(1,462.8)

+28.9%

(969.2)

(765.8)

+26.5%

             

Gross profit

(228.9)

(27.6)

NA

(148.7)

(56.9)

+161.4%

             

Selling expenses

(263.4)

(162.1)

+62.5%

(149.5)

(91.0)

+64.3%

Administrative expenses

(164.4)

(110.0)

+49.4%

(89.3)

(52.5)

+70.1%

Other operating income

11.0

8.3

+32.7%

7.6

6.9

+10.8%

Other operating expenses

(58.6)

(63.5)

-7.8%

(32.7)

(38.1)

-14.0%

Higher Costs Recognition – Res. No. 250/13

2,212.6

-

NA

2,212.6

-

NA

Results for participation in joint businesses

0.0

(0.0)

NA

0.0

(0.0)

NA

             

Operating income

1,508.4

(355.0)

NA

1,800.0

(231.6)

NA

             

Finance income

214.2

33.7

NA

194.9

26.0

NA

Finance costs

(162.4)

(100.9)

+60.9%

(32.9)

(55.6)

-40.8%

Other financial results

(128.6)

(75.2)

+71.1%

(49.1)

(50.5)

-2.8%

             

Profit before tax

1,431.6

(497.4)

NA

1,912.9

(311.7)

NA

             

Income tax and minimum expected profit tax

(117.6)

48.7

NA

(148.1)

7.1

NA

             

Net income for continuing operations

1,314.0

(448.7)

NA

1,764.8

(304.6)

NA

             

Discontinued operations

(122.1)

55.5

NA

8.0

15.5

-48.5%

             

Total income for the period

1,192.0

(393.2)

NA

1,772.8

(289.1)

NA

             

Attributable to:

            

Owners of the Company

609.6

(240.9)

NA

963.0

(172.9)

NA

Non-controlling interests

582.4

(152.3)

NA

809.8

(116.1)

NA

             

Adjusted EBITDA

(294.7)

(31.7)

NA

(195.6)

(46.3)

NA

·         During the second quarter of 2013, net sales rose by 15.7% compared to 2Q12, mainly due to the application of ENRE’s Resolution No. 347/2012, which authorized Edenor to collect from its customers a fixed or variable amount, depending on the client category. Regarding this Resolution, during 2Q13 Edenor collected an amount of AR$99.6 million.

·         The cost of sales, administration and selling expenses, and other net operating results excluding energy purchases, rose by 41.1% compared to the second quarter of 2012, mainly explained by a rise in operating, labor and third party costs.

·         Energy purchases grew 18.9% during 2Q13, mainly due to an increase in electricity purchase price, caused by subsidies removal and costs derived from hiring mobile generation.

·         On May 9, 2013, Edenor was notified of Resolution No. 250/13, which allowed the offsetting of PUREE debt held by Edenor with credits from the application of Cost Monitoring Mechanism (“MMC”). Thus, during 2Q13 we recorded MMC’s credits as revenues in our financial statements for AR$2,212.6 million.

·         Net financial results increased AR$193.0 million in the 2Q13, mainly due to the recognition of gained interests from the application of Resolution No. 250/13, partially offset by higher net exchange rate difference as a result of local currency devaluation against US Dollar, and interest payable for CAMMESA’s commercial debt.

·         The adjusted EBITDA for our distribution segment includes collections carried out by Edenor from its clients in concept of the penalty system (‘PUREE’) of AR$150.2 million and late payment penalty for AR$11.1 million, and excludes the accrued revenue from the application of Res. No. 250/13.

 

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4.4 |  Analysis of Holding and Others Segment

 

6-Month Period

2nd Quarter

Holding and Others Segment, Consolidated (AR$mm)

2013

2012

∆ %

2013

2012

∆ %

Sales revenue

87.8

85.9

+2.2%

50.8

49.2

+3.2%

Cost of sales

(42.3)

(25.2)

+67.8%

(20.3)

(14.1)

+44.6%

             

Gross profit

45.5

60.7

-25.1%

30.4

35.1

-13.4%

             

Selling expenses

(2.5)

(2.0)

+24.6%

(1.4)

(1.5)

-3.9%

Administrative expenses

(42.7)

(74.2)

-42.4%

(25.6)

(40.5)

-36.9%

Other operating income

9.7

7.6

+28.7%

8.6

3.6

+138.3%

Other operating expenses

(5.0)

(2.6)

+94.4%

(1.3)

(1.0)

+27.2%

Results for participation in associates

4.2

(0.2)

NA

(1.4)

(2.3)

-38.9%

             

Operating income

9.2

(10.7)

NA

9.4

(6.6)

NA

             

Finance income

2.5

0.4

NA

1.2

0.2

NA

Finance costs

(11.6)

(23.2)

-49.8%

(8.4)

(11.1)

-24.2%

Other financial results

73.6

59.5

+23.8%

11.1

64.1

-82.7%

             

Profit before tax

73.6

26.1

+182.5%

13.3

46.7

-71.5%

             

Income tax and minimum expected profit tax

(2.7)

(2.7)

+2.4%

(4.1)

(2.1)

+94.7%

             
             

Total income for the period

70.9

23.4

+202.9%

9.2

44.6

-79.3%

             

Attributable to:

            

Owners of the Company

70.9

23.4

+202.9%

9.2

44.6

-79.3%

Non-controlling interests

-

-

NA

-

-

NA

             

Adjusted EBITDA

30.1

7.6

+295.7%

21.7

5.3

NA

·         During the second quarter of 2013, the operating profit from our holding and others segment increased by AR$16.0 million compared to the same period of 2012. This rise is explained by a 35.8% fall of selling and administrative expenses, due to personnel reassignment between segments, and a rise of AR$19.3 million in Petrolera Pampa’s operating income. Both effects were partially offset by lesser revenues from fees.

·         The decrease of AR$49.4 million in net financial results of 1Q13 are mainly explained by higher losses from net exchange rate difference as a result of Peso devaluation against US Dollar, partially offset by a larger profit from holdings in CIESA (AR$32 million).

·         The adjusted EBITDA for our holding and others segment does not include the earnings from participation in associates, related to our direct participation in EPCA, holding 10% of Compañía de Inversiones de Energía S.A. (‘CIESA’).

 

 

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4.5 |  Six-Month Period Analysis by Subsidiary (AR$mm)

 

6-Month Period 2013

6-Month Period 2012

Subsidiary

% Pampa

Adjusted EBITDA

Net Debt2

Net Income4

% Pampa

Adjusted EBITDA

Net Debt2

Net Income4

Generation Segment

 

 

 

 

 

 

 

 

Diamante

56.0%

6.3

(23.5)

(0.2)

56.0%

11.7

(18.1)

4.0

Los Nihuiles

47.0%

17.5

(14.2)

(6.8)

47.0%

25.1

(7.0)

(3.6)

CPB

100.0%

(49.3)

69.9

(45.5)

100.0%

(17.6)

90.7

(9.4)

CTG

92.3%

49.9

168.4

(0.9)

92.3%

33.2

199.9

2.8

CTLL1

100.0%

(67.5)

1,077.5

(76.2)

100.0%

155.5

936.6

79.3

CTP

78.6%

12.3

(1.5)

6.5

78.6%

9.6

106.9

0.1

Other companies & deletions3

  

1.5

(47.9)

1.2

 

(1.0)

(180.0)

7.0

Total Generation

 

(29.3)

1,228.7

(122.0)

 

216.6

1,129.0

80.1

                 

Transmission Segment

 

 

 

 

 

 

 

 

Transener

26.3%

56.2

739.8

(44.5)

26.3%

40.1

575.0

(32.5)

Consolidation adjustment 50%

  

(28.1)

(369.9)

22.2

 

(20.1)

(287.5)

16.2

Adjustments & deletions3

  

(1.5)

(19.9)

9.0

 

1.2

(20.1)

5.7

Total Transmission

 

26.6

350.0

(13.3)

 

21.3

267.4

(10.5)

                 

Distribution Segment

 

 

 

 

 

 

 

 

Edenor1

55.4%

(290.6)

987.9

1,303.4

55.4%

(32.4)

975.4

(349.9)

EASA1

100.0%

(31.1)

558.4

(109.6)

100.0%

6.6

434.5

(41.3)

Adjustments & deletions3

  

27.0

(501.2)

(584.2)

  

(5.9)

(311.6)

150.3

Total Distribution

 

(294.7)

1,045.1

609.6

 

(31.7)

1,098.4

(240.9)

                 

Holding & Others Segment

 

 

 

 

 

 

 

 

Petrolera Pampa

100.0%

31.7

151.2

(2.7)

100.0%

15.7

127.6

(3.6)

Other companies & deletions3

  

(1.6)

115.1

73.6

 

(8.1)

558.9

27.0

Total Holding & Others

 

30.1

266.2

70.9

 

7.6

686.5

23.4

                 

Deletions

  

-

(350.0)

-

 

-

(267.4)

-

Total Consolidated Amounts to the owners of the Company

(267.3)

2,540.0

545.3

 

213.7

2,913.9

(147.8)

                 

Total Adjusted by Ownership

 

(182.1)

2,105.7

545.3

 

197.6

2,448.6

(147.8)

 

 

1Non - consolidated amounts. 2 Net debt includes holding companies. 3 The deletions in net debt correspond to inter-companies and debt repurchases, and in Transener’s case the deletion of its debt as it is not consolidated according to IFRS standards. The deletions in net income mainly correspond to minority interests. 4 CTLLL, Edenor and EASA do not include results from its subsidiaries.

 

 

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 14
 
 

 

4.6 |  Quarterly Analysis by Subsidiary (AR$mm)

 

2nd Quarter 2013

2nd Quarter 2012

Subsidiary

% Pampa

Adjusted EBITDA

Net Debt2

Net Income4

% Pampa

Adjusted EBITDA

Net Debt2

Net Income4

Generation Segment

 

 

 

 

 

 

 

 

Diamante

56.0%

(0.8)

(23.5)

(4.4)

56.0%

0.3

(18.1)

(1.0)

Los Nihuiles

47.0%

2.5

(14.2)

(11.4)

47.0%

7.3

(7.0)

(11.1)

CPB

100.0%

(21.0)

69.9

(27.0)

100.0%

(15.9)

90.7

(9.0)

CTG

92.3%

33.9

168.4

1.9

92.3%

9.6

199.9

(0.2)

CTLL1

100.0%

11.8

1,077.5

(0.5)

100.0%

75.3

936.6

51.6

CTP

78.6%

5.2

(1.5)

2.1

78.6%

4.9

106.9

(0.3)

Other companies & deletions3

  

(1.2)

(47.9)

1.9

 

0.3

(180.0)

3.0

Total Generation

 

30.3

1,228.7

(37.3)

 

81.6

1,129.0

32.9

                 

Transmission Segment

 

 

 

 

 

 

 

 

Transener

26.3%

29.0

739.8

(8.8)

26.3%

22.8

575.0

(15.9)

Consolidation adjustment 50%

  

(14.5)

(369.9)

4.4

 

(11.4)

(287.5)

7.9

Adjustments & deletions3

  

(0.7)

(19.9)

1.4

 

(0.8)

(20.1)

2.7

Total Transmission

 

13.8

350.0

(3.0)

 

10.6

267.4

(5.3)

                 

Distribution Segment

 

 

 

 

 

 

 

 

Edenor1

55.4%

(206.9)

987.9

1,815.3

55.4%

(51.7)

975.4

(256.8)

EASA1

100.0%

0.8

558.4

(41.6)

100.0%

0.0

434.5

(25.7)

Adjustments & deletions3

  

10.6

(501.2)

(810.7)

 

5.4

(311.6)

109.6

Total Distribution

 

(195.6)

1,045.1

963.0

 

(46.3)

1,098.4

(172.9)

                 

Holding & Others Segment

 

 

 

 

 

 

 

 

Petrolera Pampa

100.0%

28.5

151.2

5.9

100.0%

25.3

127.6

(3.1)

Other companies & deletions3

  

(6.9)

115.1

3.3

 

(20.0)

558.9

47.7

Total Holding & Others

 

21.7

266.2

9.2

 

5.3

686.5

44.6

                 

Deletions

  

-

(350.0)

-

 

-

(267.4)

-

Total Consolidated Amounts to the owners of the Company

(129.8)

2,540.0

931.8

 

51.2

2,913.9

(100.6)

                 

Total Adjusted by Ownership

 

(53.9)

2,105.7

931.8

 

60.9

2,448.6

(100.6)

 

  5

1Non - consolidated amounts. 2 Net debt includes holding companies. 3 The deletions in net debt correspond to inter-companies and debt repurchases, and in Transener’s case the deletion of its debt as it is not consolidated according to IFRS standards. The deletions in net income mainly correspond to minority interests. 4 CTLLL, Edenor and EASA do not include results from its subsidiaries.

 

 

Ortiz de Ocampo 3302 Edificio 4

C1425DSR Buenos Aires

Argentina

Tel +54 (11) 4809-9500

investor@pampaenergia.com

www.pampaenergia.com/ri

 15
 
 

 

 

5.     Information about the Conference Call

There will be a conference call to discuss Pampa and Edenor’s second quarter 2013 results on Wednesday August 14, 2013 at 10:00 a.m. New York Time / 11:00 a.m. Buenos Aires Time.

The hosts will be Mr. Leandro Montero, CFO of Edenor and Mr. Mariano Batistella, Special Projects, Strategic Planning and Investor Relations Officer of Pampa. For those interested in participating, please dial 0800-444-2930 in Argentina, +1 (800) 860-2442 in the United States or +1 (412) 858-6400 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:

www.pampaenergia.com/ri

www.cnv.gob.ar

 

 

 

Ortiz de Ocampo 3302 Edificio 4

C1425DSR Buenos Aires

Argentina

Tel +54 (11) 4809-9500

investor@pampaenergia.com

www.pampaenergia.com/ri

 16
 

SIGNATURE
 
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Date: August 12, 2012
 
Pampa Energía S.A.
By:
/s/ Ricardo Torres
 
Name: Ricardo Torres
Title:    Chief Executive Officer
 

 

FORWARD-LOOKING STATEMENTS

This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates offuture economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will a ctually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.