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 April 2021
Commission File No. 001-39000
Vista Oil & Gas, S.A.B. de C.V.
(Exact Name of the Registrant as Specified in the Charter)
N.A.
(Translation of Registrants Name into English)
Calle Volcán 150, Floor 5
Colonia Lomas de Chapultepec, Alcaldía Miguel Hidalgo
Mexico City, 11000
Mexico
(Address of Principal Executive Office)
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 ☒ Form 40-F ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐
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 ☒
If Yes is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): Not applicable.
Contents of this Form 6-K
This Form 6-K for Vista Oil & Gas, S.A.B. de C.V. (Vista or the Company) contains the following exhibit:
Exhibit 1: Unaudited interim condensed consolidated financial statements as of March 31, 2021, and December 31, 2020 and for the three-month periods ended March 31, 2021, and 2020.
Forward-Looking Statements
Any statements contained herein regarding Vista that are not historical or current facts are forward-looking statements. These forward-looking statements convey Vistas current expectations or forecasts of future events. Forward-looking statements regarding Vista involve known and unknown risks, uncertainties and other factors that may cause Vistas actual results, performance or achievements to be materially different from any future results, performances or achievements expressed or implied by the forward-looking statements. Certain of these risks and uncertainties are described in the Risk Factors, Forward-Looking Statements and other applicable sections of Vistas prospectus filed with the United States Securities and Exchange Commission (SEC) and other applicable filings with the SEC and the Mexican National Banking and Securities Commission (Comisión Nacional Bancaria y de Valores).
Enquiries:
Investor Relations
ir@vistaoilandgas.com
Mexico: +52.55.1167.8250
Argentina: +54.11.3754.8532
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: April 27, 2021
VISTA OIL & GAS, S.A.B. DE C.V. | ||
By: | /s/ Alejandro Cherñacov | |
Name: | Alejandro Cherñacov | |
Title: | Strategic Planning and Investor Relations Officer |
Exhibit 1
VISTA OIL & GAS, S.A.B. DE C.V.
Unaudited interim condensed consolidated financial statements as of March 31,
2021, and December 31, 2020 and for the three-month periods ended March 31,
2021, and 2020
VISTA OIL & GAS, S.A.B. DE C.V.
Unaudited interim condensed consolidated financial statements as of March 31, 2021, and December 31, 2020, and for the three-month periods ended March 31, 2021, and 2020
TABLE OF CONTENTS
| Unaudited interim condensed consolidated statements of profit or loss and other comprehensive income for the three-month periods ended March 31, 2021, and 2020. |
| Unaudited interim condensed consolidated statements of financial position as of March 31, 2021, and December 31, 2020. |
| Unaudited interim condensed consolidated statements of changes in shareholders equity for the three-month periods ended March 31, 2021 and 2020. |
| Unaudited interim condensed consolidated statements of cash flows for the three-month periods ended March 31, 2021 and 2020. |
| Notes to the unaudited interim condensed consolidated financial statements as of March 31, 2021 and December 31, 2020 and for the three-month periods ended March 31, 2021, and 2020. |
2
VISTA OIL & GAS, S.A.B. DE C.V.
Unaudited interim condensed consolidated statements of profit or loss and other comprehensive income for the three-month periods ended March 31, 2021 and 2020
(Amounts expressed in thousands of US Dollars)
Notes | Period from January 1 through March 31, 2021 |
Period from January 1 through March 31, 2020 |
||||||||
Revenues from contract with customers |
4 | 115,901 | 73,320 | |||||||
Cost of sales: |
||||||||||
Operating costs |
5.1 | (23,140 | ) | (23,833 | ) | |||||
Crude oil stock fluctuation |
5.2 | (3,100 | ) | 449 | ||||||
Depreciation, depletion and amortization |
12/13/14 | (44,730 | ) | (33,467 | ) | |||||
Royalties |
(14,886 | ) | (11,145 | ) | ||||||
|
|
|
|
|||||||
Gross profit |
30,045 | 5,324 | ||||||||
|
|
|
|
|||||||
Selling expenses |
6 | (7,412 | ) | (6,152 | ) | |||||
General and administrative expenses |
7 | (8,851 | ) | (9,367 | ) | |||||
Exploration expenses |
8 | (159 | ) | (131 | ) | |||||
Other operating income |
9.1 | 649 | 2,153 | |||||||
Other operating expenses |
9.2 | (1,049 | ) | (1,253 | ) | |||||
|
|
|
|
|||||||
Operating profit/(loss) |
13,223 | (9,426 | ) | |||||||
|
|
|
|
|||||||
Interest income |
10.1 | 4 | 624 | |||||||
Interest expenses |
10.2 | (17,398 | ) | (11,151 | ) | |||||
Other financial results |
10.3 | 12,787 | 3,192 | |||||||
|
|
|
|
|||||||
Financial results, net |
(4,607 | ) | (7,335 | ) | ||||||
|
|
|
|
|||||||
Profit/(loss) before income tax |
8,616 | (16,761 | ) | |||||||
|
|
|
|
|||||||
Current income tax (expense) |
15 | (1,748 | ) | | ||||||
Deferred income tax (expense) |
15 | (2,010 | ) | (4,571 | ) | |||||
|
|
|
|
|||||||
Income tax (expense) |
(3,758 | ) | (4,571 | ) | ||||||
|
|
|
|
|||||||
Net profit/(loss) for the period |
4,858 | (21,332 | ) | |||||||
|
|
|
|
|||||||
Other comprehensive income |
||||||||||
Other comprehensive income that will not be reclassified to profit or loss in subsequent periods |
||||||||||
- (Loss) from actuarial remediation related to defined benefit plans |
25 | (97 | ) | | ||||||
- Deferred income tax benefit |
15 | 24 | | |||||||
|
|
|
|
|||||||
Other comprehensive income that will not be reclassified to profit or loss in subsequent periods |
(73 | ) | | |||||||
|
|
|
|
|||||||
Other comprehensive income for the period, net of taxes |
(73 | ) | | |||||||
|
|
|
|
|||||||
Total comprehensive profit/(loss) for the period |
4,785 | (21,332 | ) | |||||||
|
|
|
|
|||||||
Profit/(loss) per share |
||||||||||
Basic share (in US dollars per share) |
11 | 0.055 | (0.245 | ) | ||||||
Diluted share (in US dollars per share) |
0.053 | (0.245 | ) |
Notes 1 through 30 are an integral part of these unaudited interim condensed consolidated financial statements.
3
VISTA OIL & GAS, S.A.B. DE C.V.
Unaudited interim condensed consolidated statements of financial position as of March 31, 2021 and December 31, 2020
(Amounts expressed in thousands of US Dollars)
Notes | As of March 31, 2021 |
As of December 31, 2020 |
||||||||||
Assets |
||||||||||||
Non-current assets |
||||||||||||
Property, plant and equipment |
12 | 1,035,486 | 1,002,258 | |||||||||
Goodwill |
13 | 28,484 | 28,484 | |||||||||
Other intangible assets |
13 | 20,406 | 21,081 | |||||||||
Right-of-use assets |
14 | 21,037 | 22,578 | |||||||||
Trade and other receivables |
16 | 33,087 | 29,810 | |||||||||
Deferred income tax assets |
80 | 565 | ||||||||||
|
|
|
|
|||||||||
Total non-current assets |
1,138,580 | 1,104,776 | ||||||||||
|
|
|
|
|||||||||
Current assets |
||||||||||||
Inventories |
18 | 10,491 | 13,870 | |||||||||
Trade and other receivables |
16 | 74,501 | 51,019 | |||||||||
Cash, bank balances and other short-term investments |
19 | 163,387 | 202,947 | |||||||||
|
|
|
|
|||||||||
Total current assets |
248,379 | 267,836 | ||||||||||
|
|
|
|
|||||||||
Total assets |
1,386,959 | 1,372,612 | ||||||||||
|
|
|
|
|||||||||
Shareholders equity and liabilities |
||||||||||||
Shareholders equity |
||||||||||||
Share capital |
20 | 659,400 | 659,400 | |||||||||
Share-based payments |
25,213 | 23,046 | ||||||||||
Other accumulated comprehensive losses |
(3,584 | ) | (3,511 | ) | ||||||||
Accumulated losses |
(165,559 | ) | (170,417 | ) | ||||||||
|
|
|
|
|||||||||
Total shareholders equity |
515,470 | 508,518 | ||||||||||
|
|
|
|
|||||||||
Liabilities |
||||||||||||
Non-current liabilities |
||||||||||||
Deferred income tax liabilities |
137,067 | 135,567 | ||||||||||
Lease liabilities |
14 | 15,994 | 17,498 | |||||||||
Provisions |
21 | 22,780 | 23,909 | |||||||||
Income tax payable |
1,750 | | ||||||||||
Borrowings |
17.1 | 352,656 | 349,559 | |||||||||
Warrants |
17.4 | 431 | 362 | |||||||||
Employee benefits |
25 | 3,389 | 3,461 | |||||||||
|
|
|
|
|||||||||
Total non-current liabilities |
534,067 | 530,356 | ||||||||||
|
|
|
|
|||||||||
Current liabilities |
||||||||||||
Provisions |
21 | 2,022 | 2,084 | |||||||||
Lease liabilities |
14 | 6,524 | 6,183 | |||||||||
Borrowings |
17.1 | 197,185 | 190,227 | |||||||||
Salaries and social security payable |
22 | 6,537 | 11,508 | |||||||||
Other taxes and royalties payable |
23 | 7,243 | 5,117 | |||||||||
Accounts payable and accrued liabilities |
24 | 117,911 | 118,619 | |||||||||
|
|
|
|
|||||||||
Total current liabilities |
337,422 | 333,738 | ||||||||||
|
|
|
|
|||||||||
Total liabilities |
871,489 | 864,094 | ||||||||||
|
|
|
|
|||||||||
Total shareholders equity and liabilities |
1,386,959 | 1,372,612 | ||||||||||
|
|
|
|
Notes 1 through 30 are an integral part of these unaudited interim condensed consolidated financial statements.
4
VISTA OIL & GAS, S.A.B. DE C.V.
Unaudited interim condensed consolidated statement of changes in shareholders equity for the three-month period ended March 31, 2021
(Amounts expressed in thousands of US Dollars)
Share Capital | Share-based payments |
Other accumulated comprehensive losses |
Accumulated losses | Total shareholders equity |
||||||||||||||||
Amounts as of December 31, 2020 |
659,400 | 23,046 | (3,511 | ) | (170,417 | ) | 508,518 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Profit for the period |
| | | 4,858 | 4,858 | |||||||||||||||
Other comprehensive income for the period |
| | (73 | ) | | (73 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total comprehensive income |
| | (73 | ) | 4,858 | 4,785 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Share-based payments (1) |
| 2,167 | | | 2,167 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Amounts as of March 31, 2021 |
659,400 | 25,213 | (3,584 | ) | (165,559 | ) | 515,470 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
(1) | Including 3,014 share-based payment expenses (Note 7), net of tax charges. |
Notes 1 through 30 are an integral part of these unaudited interim condensed consolidated financial statements.
5
VISTA OIL & GAS, S.A.B. DE C.V.
Unaudited interim condensed consolidated statement of changes in shareholders equity for the three-month period ended March 31, 2020
(Amounts expressed in thousands of US Dollars)
Share Capital | Share-based payments |
Other accumulated comprehensive losses |
Accumulated losses | Total shareholders equity |
||||||||||||||||
Amounts as of December 31, 2019 |
659,399 | 15,842 | (3,857 | ) | (67,668 | ) | 603,716 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Loss for the period |
| | | (21,332 | ) | (21,332 | ) | |||||||||||||
Other comprehensive income for the period |
| | | | | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total comprehensive (loss) |
| | | (21,332 | ) | (21,332 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Share-based payments (1) |
| 1,379 | | | 1,379 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Amounts as of March 31, 2020 |
659,399 | 17,221 | (3,857 | ) | (89,000 | ) | 583,763 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
(2) | Including 2,566 share-based payment expenses (Note 7), net of tax charges. |
Notes 1 through 30 are an integral part of these unaudited interim condensed consolidated financial statements.
6
VISTA OIL & GAS, S.A.B. DE C.V.
Unaudited interim condensed consolidated statements of cash flows for the three-month periods ended March 31, 2021 and 2020
(Amounts expressed in thousands of US Dollars)
Notes | Period from January 1 through March 31, 2021 |
Period from January 1 through March 31, 2020 |
||||||||||
Cash flows provided by operating activities |
||||||||||||
Net profit/(loss) for the period |
4,858 | (21,332 | ) | |||||||||
Adjustments to reconcile net cash flows |
||||||||||||
Non-cash items related to operating activities: |
||||||||||||
Allowances for expected credit losses |
6 | | 22 | |||||||||
Net changes in foreign exchange rate |
10.3 | (7,404 | ) | 611 | ||||||||
Unwinding of discount on asset retirement obligation |
10.3 | 561 | 579 | |||||||||
Net increase in provisions |
9.2 | 662 | 7 | |||||||||
Interest expense on lease liabilities |
10.3 | 300 | 442 | |||||||||
Discount of assets and liabilities at present value |
10.3 | (3,105 | ) | (194 | ) | |||||||
Share-based payments |
7 | 3,014 | 2,566 | |||||||||
Employee benefits |
25 | 43 | 53 | |||||||||
Income tax expense |
15 | 3,758 | 4,571 | |||||||||
Non-cash items related to investing activities: |
||||||||||||
Depreciation and depletion |
12/14 | 43,944 | 32,890 | |||||||||
Amortization of intangible assets |
13 | 786 | 577 | |||||||||
Interest income |
10.1 | (4 | ) | (624 | ) | |||||||
Changes in the fair value of financial assets |
10.3 | (7,074 | ) | 2,165 | ||||||||
Non-cash items related to financing activities: |
||||||||||||
Interest expenses |
10.2 | 17,398 | 11,151 | |||||||||
Changes in the fair value of warrants |
10.3 | 69 | (10,769 | ) | ||||||||
Amortized costs |
10.3 | 2,218 | 593 | |||||||||
Impairment of financial assets |
10.3 | | 4,839 | |||||||||
Changes in working capital: |
||||||||||||
Trade and other receivables |
(30,343 | ) | 8,329 | |||||||||
Inventories |
3,105 | (1,084 | ) | |||||||||
Accounts payable and accrued liabilities |
7,736 | (2,187 | ) | |||||||||
Payments of employee benefits |
25 | (212 | ) | (197 | ) | |||||||
Salaries and social security payable |
(5,722 | ) | (9,377 | ) | ||||||||
Other taxes and royalties payable |
3,273 | (1,692 | ) | |||||||||
Provisions |
(114 | ) | (235 | ) | ||||||||
Income tax payment |
(1,146 | ) | (707 | ) | ||||||||
|
|
|
|
|||||||||
Net cash flows generated by operating activities |
36,601 | 20,997 | ||||||||||
|
|
|
|
|||||||||
Cash flows from investing activities: |
||||||||||||
Payments for acquisitions of property, plant and equipment |
(79,856 | ) | (51,714 | ) | ||||||||
Payments for acquisitions of other intangible assets |
13 | (111 | ) | (985 | ) | |||||||
Proceeds from interest received |
4 | 624 | ||||||||||
|
|
|
|
|||||||||
Net cash flows (used in) investing activities |
(79,963 | ) | (52,075 | ) | ||||||||
|
|
|
|
7
VISTA OIL & GAS, S.A.B. DE C.V.
Unaudited interim condensed consolidated statement of cash flows for the three-month periods ended March 31, 2021 and 2020
(Figures stated in thousands of US dollars)
Notes | Period from January 1 through March 31, 2021 |
Period from January 1 through March 31, 2020 |
||||||||||
Cash flows from financing activities: |
||||||||||||
Proceeds from borrowing |
17.2 | 121,444 | 80,000 | |||||||||
Payment of borrowing´s costs |
17.2 | (1,964 | ) | (580 | ) | |||||||
Payment of borrowing´s principal |
17.2 | (98,937 | ) | (42,635 | ) | |||||||
Payment of borrowing´s interests |
17.2 | (19,558 | ) | (16,936 | ) | |||||||
Payment of lease |
14 | (1,852 | ) | (3,565 | ) | |||||||
Payment of other financial liabilities, net of restricted cash and cash equivalents |
| (16,993 | ) | |||||||||
|
|
|
|
|||||||||
Net cash flows generated by (used in) financing activities |
(867 | ) | (709 | ) | ||||||||
|
|
|
|
|||||||||
Net (decrease) in cash and cash equivalents |
(44,229 | ) | (31,787 | ) | ||||||||
Cash and cash equivalents at beginning of period |
19 | 201,314 | 234,230 | |||||||||
Effect of exposure to changes in the foreign currency rate of cash and cash equivalents |
6,152 | (321 | ) | |||||||||
Net (decrease) in cash and cash equivalents |
(44,229 | ) | (31,787 | ) | ||||||||
|
|
|
|
|||||||||
Cash and cash equivalents at end of period |
19 | 163,237 | 202,122 | |||||||||
|
|
|
|
|||||||||
Significant transactions that generated no cash flows |
||||||||||||
Acquisition of property, plant and equipment through increase in account payables and other accounts |
79,655 | 37,375 | ||||||||||
Changes in asset retirement obligation with corresponding changes in property, plant and equipment |
(1,696 | ) | (3,370 | ) |
Notes 1 through 30 are an integral part of these unaudited interim condensed consolidated financial statements.
8
VISTA OIL & GAS, S.A.B. DE C.V.
Notes to the unaudited interim condensed consolidated financial statements as of March 31, 2021 and December 31, 2020 and for the three-month periods ended March 31, 2021 and 2020
(Amounts expressed in thousands of US Dollars, except otherwise indicated)
Note 1. Group information
1.1 Company general information, structure and activities
Vista Oil & Gas, S.A.B. de C.V. (VISTA or the Company or the Group) was organized as a corporation with variable capital stock under the laws of the United Mexican States (Mexico) on March 22, 2017. The Company adopted the public corporation or Sociedad Anónima Bursátil (S.A.B.), on July 28, 2017.
Likewise, since July 26, 2019 the Company is listed on the New York Stock Exchange (NYSE) under the ticker symbol
VIST.
The address of the Company´s main office is located in Mexico City (Mexico), at Volcán 150. Floor 5. Lomas de Chapultepec.
Miguel Hidalgo.Zip Code.11000.
Through its subsidiaries, the Company engages in oil and gas exploration and production (upstream segment).
These unaudited interim condensed consolidated financial statements were approved for publication by the Board of Directors on April 27, 2021.
There were no changes in the Groups structure and activities as from the date of issuance of the annual financial statements as of December 31, 2020.
Note 2. Basis of preparation and significant accounting policies
2.1 Bases of preparation and presentation of the financial statements
The unaudited interim condensed consolidated financial statements as of March 31, 2021 and December 31, 2020, and for the three-month periods ended March 31, 2021 and 2020 were prepared in agreement with the International Accounting Standard (IAS) No. 34 Interim Financial Reporting. The Company prepared its interim financial statements on a condensed basis pursuant to IAS 34. Certain explanatory notes are included to describe the events and transactions that are relevant to understand the changes in the financial position as of March 31, 2021, and the results of operations for the three-month period ended March 31, 2021. Therefore, these interim condensed consolidated financial statements do not include all the information and disclosures required in the annual financial statements and should be read together with the Companys annual consolidated financial statements as of December 31, 2020.
These unaudited interim condensed consolidated financial statements were prepared using the same accounting policies as used in preparing our consolidated financial statements as of December 31, 2020, except for the adoption of new standards and interpretations effective as of January 1, 2021; and the income tax expense that is recognized in each interim period based on the best estimate of the weighted average annual income tax rate expected for the full financial year.
They were prepared on a historical cost basis, except for certain financial assets and liabilities that were measured at fair value. The figures contained herein are stated in US dollars (US) and are rounded to the nearest thousand (US 000), unless otherwise stated.
2.2 New accounting standards, amendments and interpretations issued by the IASB adopted by the Company
The Company did not opt for the early adoption of any other standard, interpretation or amendment that has been issued but is not yet effective.
Amendments to IFRS 7, IFRS 9, IFRS 16 and IAS 39: Interest Rate Benchmark Reform
The amendments provide temporary reliefs which address the financial reporting effects when an Interbank Offered Rate (IBOR) is replaced with an alternative nearly risk-free interest rate (RFR).
The amendments include the following practical expedients:
(i) | A practical expedient to require contractual changes, or changes to cash flows that are directly required by the reform, to be treated as changes to a floating interest rate, equivalent to a movement in a market rate of interest; |
(ii) | Permit changes required by IBOR reform to be made to hedge designations; |
9
VISTA OIL & GAS, S.A.B. DE C.V.
Notes to the unaudited interim condensed consolidated financial statements as of March 31, 2021 and December 31, 2020 and for the three-month periods ended March 31, 2021 and 2020
(Amounts expressed in thousands of US Dollars, except otherwise indicated)
(iii) | Provide temporary relief to entities from having to meet the separately identifiable requirement when an RFR instrument is designated as a hedge of a risk component. |
As of March 31, 2021, the Company initiated no negotiations with banks for its borrowings at LIBOR.
2.3 Basis of consolidation
These unaudited interim condensed consolidated financial statements contain the financial statements of the Company and its subsidiaries. There were no changes in interest in Company subsidiaries during the three-month period ended March 31, 2021.
2.4 Summary of significant accounting policies
2.4.1 Going concern
The COVID-19 outbreak has had a severe impact on the global economy. The Group is faced the transformation of the oil market, characterized by a dramatic fall in demand and oil prices due to extreme COVID-19 containment measures.
The Group adopted immediate and decisive actions, such as reducing 2020 work program (it adjusted capital investment plans, including the renegotiation of investment commitments, financing, and lease agreements) and monitoring operating and administrative costs on an ongoing basis.
Moreover, in this current challenging context, fulfillment of the commitments undertaken will continue to be monitored. In case of noncompliance, creditors may declare an event of default and claim interest and other charges accrued.
The Board oversees the Groups cash position regularly and liquidity risk throughout the year to ensure that there are sufficient funds to expected financing, operating and investing requirements. Sensitivity test are conducted to disclose the latest expense expectations, oil and gas prices and other factors so that the Group may manage the risk of any financing deficit or potential default.
Considering the macroeconomic context, the results of operations and the Groups cash position, as of March 31, 2021, the Directors asserted, upon approving the financial statements, that the Group may reasonably be expected to fulfill its obligations in the foreseeable future. Therefore, these interim condensed consolidated financial statements were prepared on a going concern basis.
2.4.2 Impairment testing of goodwill and non-financial assets other than goodwill
Non-financial assets, including identifiable intangible assets, are tested for impairment in the lowest level at which there are separately identifiable cash flows largely independent of the cash flows of other groups of assets or Cash Generated Units (CGUs). For this purpose, each owned or jointly operated oil and gas in 4 (four) CGUs in Argentina: (i) conventional oil and gas operating concessions; (ii) unconventional oil and gas operating concessions; (iii) conventional oil and gas non-operating concessions; (iv) unconventional oil and gas non-operating concessions. The Company also identified 2 (two) CGUs in Mexico: (i) conventional oil and gas non-operating concessions; (ii) conventional oil and gas operating concessions.
The Company conducts its annual impairment test every December or when there is an indication that the carrying amount may be impaired. Its bases the impairment test of goodwill and non-financial assets on the calculation of value in use; and reviews the relationship between the recoverable value and the carrying amount of its assets.
At the end of each period, the Company considers the relationship between its market capitalization and its book value, when reviewing indicators for impairment. As of March 31, 2021, the Company did not identifiy impairment indicators.
10
VISTA OIL & GAS, S.A.B. DE C.V.
Notes to the unaudited interim condensed consolidated financial statements as of March 31, 2021 and December 31, 2020 and for the three-month periods ended March 31, 2021 and 2020
(Amounts expressed in thousands of US Dollars, except otherwise indicated)
2.5 Regulatory framework
A- Argentina
2.5.1 General
2.5.1.1 Decree No. 297/2020
As of the date of theses interim condensed consolidated financial statements measures connected with the COVID-19 pandemic, were extended by sucesive decrees, entering into a preventive and mandatory social isolation. The last one was Decree No. 235/2021. This period may continue to be extended as long as is necessary to mitigate the epidemiological situation.
Except as mentioned above, there have been no significant changes in the Companys regulatory framework applicable to Argentina during the period ended March 31, 2021. See Note 2.5.1.1 of the annual consolidated financial statements as of December 31, 2020 for more details.
2.5.2 Gas market
2.5.2.1 Program to promote the injection of natural gas surplus for reduced injection companies (RI program)
The RI program was introduced by the Argentine Department of Energy in agreement with Resolution No. 60/13 of 2013. This program created price incentives to encourage producing companies adherence aimed at boosting natural gas production in Argentina, and LPG import fines in case of volume noncompliance. This resolution, amended by Resolutions No. 22/14 and No. 139/14, set forth a selling price ranging between 4 US/MMBTU and 7.5 US/MMBTU according to the production possibility curve.
On July 1, 2019, through Resolution No. 358/19, the Department of Energy advised the Company of the plan for settling the receivable related to the RI program. According to such resolution, the Companys receivable as of that date would be settled with government bonds (natural gas program bonds) denominated in US dollars to be amortized within a maximum term of 30 (thirty) installments.
From the total bonds received by the Company, 2,071 program-related bonds were amortized during the three-month period ended March 31, 2021. As of March 31, 2021, and December 31, 2020, the Companys receivable related to such plan amounts to 2,033 and 4,012 at present value (2,069 and 4,140 of nominal value). See Note 16.
B- México
2.5.3 General
The measures corresponding to the treatment of the COVID-19 pandemic was extended and may continue to be extended as long as is necessary to control the epidemiological situation as determined by the competent health authorities at national and city levels.
Except as mentioned above, there have been no significant changes in the Companys regulatory framework applicable to Mexico during the period ended March 31, 2021. See Note 2.5.6 of the annual consolidated financial statements as of December 31, 2020 for more details.
Note 3. Segment information
The Chief Operating Decision Maker (the CODM or Committee) is in charge of allocating resources and assesing the performance of the operating segment. It supervises operating profit/(loss) and the performance of the indicators related to its oil and gas properties on an aggregate basis to make decisions regarding the location of resources, negotiate with international suppliers and determine the method for managing contracts customers.
The Committee considers as a single segment the exploration and production of natural gas, LPG and crude oil (includes all upstream business), through its own activities, subsidiaries and interests in joint operations and based on the nature of business, customer portfolio and risks involved. The Company aggregated no segment as it has only one.
11
VISTA OIL & GAS, S.A.B. DE C.V.
Notes to the unaudited interim condensed consolidated financial statements as of March 31, 2021 and December 31, 2020 and for the three-month periods ended March 31, 2021 and 2020
(Amounts expressed in thousands of US Dollars, except otherwise indicated)
For the three-month periods ended March 31, 2021 and 2020, the Company generated 99% and 1% of its revenues related to assets located in Argentina and Mexico, respectively.
The accounting criteria used by the subsidiaries to measure profit or loss, assets and liabilities of the segments are consistent with those used in these unaudited interim condensed consolidated financial statements.
The following chart summarizes non-current assets per country:
As of March 31, 2021 |
As of December 31, 2020 |
|||||||
Argentina |
1,119,606 | 1,086,308 | ||||||
Mexico |
18,974 | 18,468 | ||||||
|
|
|
|
|||||
Total non-current assets |
1,138,580 | 1,104,776 | ||||||
|
|
|
|
Note 4. Revenues from contracts with customers
Period from January 1 through March 31, 2021 |
Period from January 1 through March 31, 2020 |
|||||||
Sales of goods |
115,901 | 73,320 | ||||||
|
|
|
|
|||||
Total revenues from contracts with customers |
115,901 | 73,320 | ||||||
|
|
|
|
|||||
Recognized at a point in time |
115,901 | 73,320 | ||||||
|
|
|
|
4.1 Disaggregated revenues information from contracts with customers
Type of products |
Period from January 1 through March 31, 2021 |
Period from January 1 through March 31, 2020 |
||||||
Revenues from crude oil sales |
107,202 | 61,985 | ||||||
Revenues from natural gas sales |
7,884 | 10,113 | ||||||
Revenues from LPG sales |
815 | 1,222 | ||||||
|
|
|
|
|||||
Total revenues from contracts with customers |
115,901 | 73,320 | ||||||
|
|
|
|
Distribution channels |
Period from January 1 through March 31, 2021 |
Period from January 1 through March 31, 2020 |
||||||
Refineries |
54,499 | 61,985 | ||||||
Exports |
52,703 | | ||||||
Natural gas for electric power generation |
3,952 | 747 | ||||||
Industries |
1,976 | 6,070 | ||||||
Retail natural gas distribution companies |
1,956 | 3,296 | ||||||
Commercialization of LPG |
815 | 1,222 | ||||||
|
|
|
|
|||||
Total revenue from contracts with customers |
115,901 | 73,320 | ||||||
|
|
|
|
Note 5. Cost of sales
Note 5.1 Operating costs
Period from January 1 through March 31, 2021 |
Period from January 1 through March 31, 2020 |
|||||||
Fees and compensation for services |
11,819 | 11,865 | ||||||
Consumption of materials and spare parts |
3,163 | 4,223 | ||||||
Salaries and social security |
3,105 | 2,820 | ||||||
Easements and fees |
2,041 | 2,286 | ||||||
Employee benefits |
1,008 | 929 | ||||||
Transport |
625 | 651 | ||||||
Others |
1,379 | 1,059 | ||||||
|
|
|
|
|||||
Total operating costs |
23,140 | 23,833 | ||||||
|
|
|
|
12
VISTA OIL & GAS, S.A.B. DE C.V.
Notes to the unaudited interim condensed consolidated financial statements as of March 31, 2021 and December 31, 2020 and for the three-month periods ended March 31, 2021 and 2020
(Amounts expressed in thousands of US Dollars, except otherwise indicated)
Note 5.2 Crude oil stock fluctuation
Period from January 1 through March 31, 2021 |
Period from January 1 through March 31, 2020 |
|||||||
Crude oil stock at beginning of period (Note 18) |
6,127 | 3,032 | ||||||
Less: Crude oil stock at end of period (Note 18) |
(3,027 | ) | (3,481 | ) | ||||
|
|
|
|
|||||
Total crude oil stock fluctuation |
3,100 | (449 | ) | |||||
|
|
|
|
Note 6. Selling expenses
Period from January 1 through March 31, 2021 |
Period from January 1 through March 31, 2020 |
|||||||
Transport |
3,677 | 2,543 | ||||||
Taxes, rates and contributions |
1,720 | 2,372 | ||||||
Tax on bank account transactions |
1,435 | 1,213 | ||||||
Fees and compensation for services |
580 | 2 | ||||||
Allowances for expected credit losses |
| 22 | ||||||
|
|
|
|
|||||
Total selling expenses |
7,412 | 6,152 | ||||||
|
|
|
|
Note 7. General and administrative expenses
Period from January 1 through March 31, 2021 |
Period from January 1 through March 31, 2020 |
|||||||
Share-based payments |
3,014 | 2,566 | ||||||
Salaries and social security |
2,396 | 2,959 | ||||||
Employee benefits |
1,456 | 1,269 | ||||||
Fees and compensation for services |
1,375 | 1,743 | ||||||
Institutional promotion and advertising |
270 | 346 | ||||||
Taxes, rates and contributions |
119 | 103 | ||||||
Others |
221 | 381 | ||||||
|
|
|
|
|||||
Total general and administrative expenses |
8,851 | 9,367 | ||||||
|
|
|
|
Note 8. Exploration expenses
Period from January 1 through March 31, 2021 |
Period from January 1 through March 31, 2020 |
|||||||
Geological and geophysical expenses |
159 | 131 | ||||||
|
|
|
|
|||||
Total exploration expenses |
159 | 131 | ||||||
|
|
|
|
Note 9. Other operating income and expenses
Note 9.1 Other operating income
Period from January 1 through March 31, 2021 |
Period from January 1 through March 31, 2020 |
|||||||
Other income for services (1) |
626 | 874 | ||||||
Others |
23 | 1,279 | ||||||
|
|
|
|
|||||
Total other operating income |
649 | 2,153 | ||||||
|
|
|
|
(1) | Services not directly related to the Companys main activity. |
Note 9.2 Other operating expenses
Period from January 1 through March 31, 2021 |
Period from January 1 through March 31, 2020 |
|||||||
Restructuring expenses (1) |
(387 | ) | (1,244 | ) | ||||
Provision for environmental remediation |
(316 | ) | (36 | ) | ||||
(Allowance)/Reversal provision for materials and spare parts |
(314 | ) | 29 | |||||
Provision for contingencies |
(32 | ) | | |||||
Others |
| (2 | ) | |||||
|
|
|
|
|||||
Total other operating expenses |
(1,049 | ) | (1,253 | ) | ||||
|
|
|
|
(1) | The Company booked restructuring expenses including payments, fees and transaction costs related to the changes in the Groups structure. |
13
VISTA OIL & GAS, S.A.B. DE C.V.
Notes to the unaudited interim condensed consolidated financial statements as of March 31, 2021 and December 31, 2020 and for the three-month periods ended March 31, 2021 and 2020
(Amounts expressed in thousands of US Dollars, except otherwise indicated)
Note 10. Financial results
10.1 Interest income
Period from January 1 through March 31, 2021 |
Period from January 1 through March 31, 2020 |
|||||||
Financial interests |
4 | 624 | ||||||
|
|
|
|
|||||
Total interest income |
4 | 624 | ||||||
|
|
|
|
10.2 Interest expenses
Period from January 1 through March 31, 2021 |
Period from January 1 through March 31, 2020 |
|||||||
Borrowing interests (Note 17.2) |
(16,758 | ) | (11,151 | ) | ||||
Other borrowing interests (Note 17.2) |
(640 | ) | | |||||
|
|
|
|
|||||
Total interest expenses |
(17,398 | ) | (11,151 | ) | ||||
|
|
|
|
10.3 Other financial results
Period from January 1 through March 31, 2021 |
Period from January 1 through March 31, 2020 |
|||||||
Amortized costs (Note 17.2) |
(2,218 | ) | (593 | ) | ||||
Changes in the fair value of warrants (Note 17.4.1) |
(69 | ) | 10,769 | |||||
Net changes in foreign exchange rate |
7,404 | (611 | ) | |||||
Discount of assets and liabilities at present value |
3,105 | 194 | ||||||
Impairment of financial assets |
| (4,839 | ) | |||||
Changes in the fair value of financial assets |
7,074 | (2,165 | ) | |||||
Interest expense on lease liabilities (Note 14) |
(300 | ) | (442 | ) | ||||
Unwinding of discount on asset retirement obligation |
(561 | ) | (579 | ) | ||||
Others |
(1,648 | ) | 1,458 | |||||
|
|
|
|
|||||
Total other financial results |
12,787 | 3,192 | ||||||
|
|
|
|
Note 11. Profit /(Loss) per share
a) Basic
Basic profit (loss) per share is calculated by dividing the Companys profit or loss by the weighted average number of ordinary shares outstanding during the period.
b) Diluted
Diluted profit (loss) per share is calculated by dividing the Companys profit or loss by the weighted average number of ordinary shares outstanding during the period, plus the weighted average of dilutive potential ordinary shares.
Dilutive potential ordinary shares will be considered dilutive when their conversion to ordinary shares may reduce earnings per share or increase losses per share. They will be considered antidilutive when their conversion to ordinary shares may result in an increase in earnings per share or a reduction in loss per share.
The calculation of diluted profit (loss) per share does not involve a conversion; the exercise or other issue of shares that may have an antidilutive effect on loss per share, or when the exercise price is higher than the average price of ordinary shares during the period, no dillution effect is booked, as diluted profit (loss) per share is equal to basic profit (loss) per share.
Period from January 1 through March 31, 2021 |
Period from January 1 through March 31, 2020 |
|||||||
Profit/(Loss) for the period, net |
4,858 | (21,332 | ) | |||||
Weighted average number of ordinary shares |
87,870,909 | 87,166,406 | ||||||
|
|
|
|
|||||
Basic profit/(loss) per share (in US dollars per share) |
0.055 | (0.245 | ) | |||||
|
|
|
|
14
VISTA OIL & GAS, S.A.B. DE C.V.
Notes to the unaudited interim condensed consolidated financial statements as of March 31, 2021 and December 31, 2020 and for the three-month periods ended March 31, 2021 and 2020
(Amounts expressed in thousands of US Dollars, except otherwise indicated)
Period from January 1 through March 31, 2021 |
Period from January 1 through March 31, 2020 |
|||||||
Profit/(Loss) for the period, net |
4,858 | (21,332 | ) | |||||
Weighted average number of ordinary shares |
92,181,510 | 87,166,406 | ||||||
|
|
|
|
|||||
Diluted profit/(loss) per share (in US dollars per share) |
0.053 | (0.245 | ) | |||||
|
|
|
|
As of March 31, 2021, the Company holds the following dilutive potential ordinary shares that are antidilutive; therefore, they are not included in the weighted average number of ordinary shares to calculate diluted profit /(loss) per share:
i. | 21,666,667 Series A shares related to 65,000,000 Series A warrants; |
ii. | 9,893,333 Series A shares related to 29,680,000 warrants; |
iii. | 1,666,667 Series A shares related to 5,000,000 securities (Forward Purchase Agreement (FPA)) and; |
iv. | 1,290,677 Series A shares that will be used in the Long-Term Incentive Plan (LTIP). |
There were no other transactions involving ordinary shares or dilutive potential ordinary shares between the reporting date and the date of authorization of these unaudited interim condensed consolidated financial statements.
15
VISTA OIL & GAS, S.A.B. DE C.V.
Notes to the unaudited interim condensed consolidated financial statements as of March 31, 2021 and December 31, 2020 and for the three-month periods ended March 31, 2021 and 2020
(Amounts expressed in thousands of US Dollars, except otherwise indicated)
Note 12. Property, plant and equipment
The changes in property, plant and equipment for the period ended March 31, 2021 are as follows:
Land and buildings |
Vehicles, machinery, facilities, computer hardware and furniture and fixtures |
Oil and gas properties |
Production wells and facilities |
Works in progress |
Materials and spare parts |
Total | ||||||||||||||||||||||
Cost |
||||||||||||||||||||||||||||
Amounts as of December 31, 2020 |
2,456 | 21,831 | 353,076 | 876,663 | 79,556 | 28,851 | 1,362,433 | |||||||||||||||||||||
Additions |
250 | 106 | | 859 | 64,322 | 12,584 | 78,121 | |||||||||||||||||||||
Transfers |
| 75 | | 100,946 | (89,331 | ) | (11,690 | ) | | |||||||||||||||||||
Disposals (1) |
| (4 | ) | | (1,696 | ) | | (279 | ) | (1,979 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Amounts as of March 31, 2021 |
2,706 | 22,008 | 353,076 | 976,772 | 54,547 | 29,466 | 1,438,575 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Accumulated depreciation |
||||||||||||||||||||||||||||
Amounts as of December 31, 2020 |
(276 | ) | (7,466 | ) | (33,373 | ) | (319,060 | ) | | | (360,175 | ) | ||||||||||||||||
Depreciation |
(5 | ) | (947 | ) | (5,069 | ) | (36,896 | ) | | | (42,917 | ) | ||||||||||||||||
Disposals |
| 3 | | | | | 3 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Amounts as of March 31, 2021 |
(281 | ) | (8,410 | ) | (38,442 | ) | (355,956 | ) | | | (403,089 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net value |
||||||||||||||||||||||||||||
Amounts as of March 31, 2021 |
2,425 | 13,598 | 314,634 | 620,816 | 54,547 | 29,466 | 1,035,486 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Amounts as of December 31, 2020 |
2,180 | 14,365 | 319,703 | 557,603 | 79,556 | 28,851 | 1,002,258 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) | Disposals of wells and production facilities related to the reestimation of assets retirement obligation. |
16
VISTA OIL & GAS, S.A.B. DE C.V.
Notes to the unaudited interim condensed consolidated financial statements as of March 31, 2021 and December 31, 2020 and for the three-month periods ended March 31, 2021 and 2020
(Amounts expressed in thousands of US Dollars, except otherwise indicated)
Note 13. Goodwill and other intangible assets
Below are the changes in goodwill and other intangible assets for the three-month period ended March 31, 2021:
Other intangible assets | ||||||||||||||||
Goodwill | Software licenses |
Exploration rights |
Total | |||||||||||||
Cost |
||||||||||||||||
Amounts as of December 31, 2020 |
28,484 | 10,605 | 15,359 | 25,964 | ||||||||||||
Additions |
| 111 | | 111 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Amounts as of March 31, 2021 |
28,484 | 10,716 | 15,359 | 26,075 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Accumulated amortization |
||||||||||||||||
Amounts as of December 31, 2020 |
| (4,883 | ) | | (4,883 | ) | ||||||||||
Amortization |
| (786 | ) | | (786 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Amounts as of March 31, 2021 |
| (5,669 | ) | | (5,669 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net value |
||||||||||||||||
Amounts as of March 31, 2021 |
28,484 | 5,047 | 15,359 | 20,406 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Amounts as of December 31, 2020 |
28,484 | 5,722 | 15,359 | 21,081 | ||||||||||||
|
|
|
|
|
|
|
|
Note 14. Right of use assets and lease liabilities
The Company has lease contracts for various items of buildings, and plant and machinery, which are recognized under IFRS 16.
The Company recognizes right-of-use assets at the commencement date of the lease (i.e., on the date when the underlying asset is available for use). Right-of-use assets are measured at cost, net of the accumulated depreciation and impairment losses, and are adjusted by the remeasurement of lease liabilities.
Unless the Company is reasonably certain that it will obtain the ownership of the leased asset at the end of the lease term, recognized right-of-use assets are depreciated under the straight-line method during the shortest of its estimated useful life and the lease term. Right-of-use assets are subject to impairment.
At the commencement date of the lease, the Company recognizes lease liabilities measured at the present value of the lease payments to be made over the lease term. After the commencement date, of lease liabilities will be increased to reflect the accumulation of interest and will be reduced by the lease payments made. In addition, the carrying amount of lease liabilities are remeasured if there is an amendment, a change in the lease term, a change in the in-substance fixed lease payments or a change in the assessment to purchase the underlying asset.
The carrying amount of the Companys right-of-use assets and lease liabilities, as well as the changes for the period are detailed below:
Right-of-use assets | Lease liabilities |
|||||||||||||||
Buildings | Plant and machinery |
Total | ||||||||||||||
Amounts as of December 31, 2020 |
1,319 | 21,259 | 22,578 | (23,681 | ) | |||||||||||
Reestimation |
| (38 | ) | (38 | ) | 94 | ||||||||||
Depreciation (1) |
(118 | ) | (1,385 | ) | (1,503 | ) | | |||||||||
Payments |
| | | 1,852 | ||||||||||||
Interest expenses (2) |
| | | (783 | ) | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Amounts as of March 31, 2021 |
1,201 | 19,836 | 21,037 | (22,518 | ) | |||||||||||
|
|
|
|
|
|
|
|
(1) | Including the depreciation of drilling services capitalized as works in progress for 476. |
(2) | The amount includes lease transfer for drilling services incurred capitalized as works in progress for 483. |
17
VISTA OIL & GAS, S.A.B. DE C.V.
Notes to the unaudited interim condensed consolidated financial statements as of March 31, 2021 and December 31, 2020 and for the three-month periods ended March 31, 2021 and 2020
(Amounts expressed in thousands of US Dollars, except otherwise indicated)
The Company applies the exemption to recognize short-term leases of machinery and equipment (i.e., leases for a term under 12 months as from the commencement date and do not contain a purchase option). The low-value asset exemption also applies to low-value office equipment items. The lease payments on short-term leases and leases of low-value assets are recognized as expenses under the straight-line method during the lease term.
Short-term and low-value leases and overhead spending were recognized in the statement of profit or loss and other comprehensive loss in the general and administrative expenses for 33, for the three-month period ended March 31, 2021.
Note 15. Income tax
The Company calculates the income tax for the period using the tax rate that would be applicable to the expected annual profit or loss. The most significant components of the income tax expense in the statement of profit or loss and other comprehensive income of these interim condensed consolidated financial statements are:
Period from January 1 through March 31, 2021 |
Period from January 1 through March 31, 2020 |
|||||||
Income tax |
||||||||
Current income tax (expenses) |
(1,748 | ) | | |||||
Deferred income (expenses) tax relating to origination and reversal of temporary differences |
(2,010 | ) | (4,571 | ) | ||||
|
|
|
|
|||||
Income tax (expense) disclosed in the statement of profit or loss |
(3,758 | ) | (4,571 | ) | ||||
|
|
|
|
|||||
Deferred income tax charged to other comprehensive income |
24 | | ||||||
|
|
|
|
|||||
Total income tax (expenses) |
(3,734 | ) | (4,571 | ) | ||||
|
|
|
|
The Companys effective rate stood at 44% and 27% for the three-months periods ended March 31, 2021 and 2020, respectively. The differences between the effective and statutory rate are mainly related to: (i) the depreciation of Argentine peso with respect to the US dollar affecting the Companys tax deductions of non-monetary assets and the generation of tax losses (NOLs), and (ii) the application of the tax adjustment for inflation in Argentina.
Note 16. Trade and other receivables
As of March 31, 2021 |
As of December 31, 2020 |
|||||||
Non-current |
||||||||
Other receivables: |
||||||||
Prepayments, tax receivables and others: |
||||||||
Income tax |
12,186 | 11,995 | ||||||
Prepayments and other receivables |
10,083 | 9,884 | ||||||
Value Added Tax (VAT) |
8,656 | 5,562 | ||||||
Minimum presumed income tax |
949 | 1,034 | ||||||
Turnover tax |
769 | 789 | ||||||
|
|
|
|
|||||
32,643 | 29,264 | |||||||
Financial assets: |
||||||||
Prepayments and loans to employees |
444 | 546 | ||||||
|
|
|
|
|||||
444 | 546 | |||||||
|
|
|
|
|||||
Total non-current trade and other receivables |
33,087 | 29,810 | ||||||
|
|
|
|
18
VISTA OIL & GAS, S.A.B. DE C.V.
Notes to the unaudited interim condensed consolidated financial statements as of March 31, 2021 and December 31, 2020 and for the three-month periods ended March 31, 2021 and 2020
(Amounts expressed in thousands of US Dollars, except otherwise indicated)
As of March 31, 2021 |
As of December 31, 2020 |
|||||||
Current |
||||||||
Trade: |
||||||||
Oil and gas accounts receivable (net of reserves) |
38,167 | 23,260 | ||||||
|
|
|
|
|||||
38,167 | 23,260 | |||||||
|
|
|
|
|||||
Other receivables: |
||||||||
Prepayments, tax credits and other: |
||||||||
VAT |
25,618 | 17,022 | ||||||
Prepaid expenses |
3,864 | 3,228 | ||||||
Turnover tax |
1,310 | 406 | ||||||
Income tax |
263 | 254 | ||||||
|
|
|
|
|||||
31,055 | 20,910 | |||||||
Financial assets: |
||||||||
RI program (Note 2.5.2.1) |
2,033 | 4,012 | ||||||
Accounts receivable from third parties |
1,941 | 1,974 | ||||||
Advances to directors and loans to employees |
636 | 499 | ||||||
LPG price stability program |
507 | 322 | ||||||
Receivables from joint operations |
25 | 24 | ||||||
Others |
137 | 18 | ||||||
|
|
|
|
|||||
5,279 | 6,849 | |||||||
|
|
|
|
|||||
Other receivables |
36,334 | 27,759 | ||||||
|
|
|
|
|||||
Total current trade and other receivables |
74,501 | 51,019 | ||||||
|
|
|
|
Due to the short-term nature of current trade and other receivables, its carrying amount is considered similar to its fair value. The fair values of non-current trade and other receivables do not differ significantly from its carrying amounts either.
In general, accounts receivable have a 15 day term for sales of oil and a 65 day term for sales of natural gas and LPG.
The Company sets up a provision for trade receivables when there is information showing that the debtor is facing severe financial difficulties or that there is no realistic probability of recovery, for example, when the debtor goes into liquidation or files for bankruptcy proceedings. None of the trade receivables that have been written off is subject to enforcement activities. The Company has recognized an allowance for expected credit losses of 100% against all receivables over 90 days past due because historical experience has indicated that these receivables are generally not recoverable. Due to the nature of its business, the Company identified no major changes in the recoverability of Trade and other receivables during the COVID-19 pandemic.
As of March 31, 2021, and December 31, 2020, trade and other receivables less than 90 days past due amounted to 2,077 and 5,024, respectively, so no expected credit loss allowance was booked. As of March 31, 2021, and December 31, 2020 the Company has an expected credit loss allowance under trade and other receivables for 3, respectively.
As of the date of these interim condensed consolidated financial statements, maximum exposure to credit risk its related to the carrying amount of each class of accounts receivable.
19
VISTA OIL & GAS, S.A.B. DE C.V.
Notes to the unaudited interim condensed consolidated financial statements as of March 31, 2021 and December 31, 2020 and for the three-month periods ended March 31, 2021 and 2020
(Amounts expressed in thousands of US Dollars, except otherwise indicated)
Note 17. Financial assets and liabilities
17.1 Borrowings
As of March 31, 2021 |
As of December 31, 2020 |
|||||||
Non-current |
||||||||
Borrowings |
352,656 | 349,559 | ||||||
|
|
|
|
|||||
Total non-current |
352,656 | 349,559 | ||||||
|
|
|
|
|||||
Current |
||||||||
Borrowings |
197,185 | 190,227 | ||||||
|
|
|
|
|||||
Total current |
197,185 | 190,227 | ||||||
|
|
|
|
|||||
Total Borrowings |
549,841 | 539,786 | ||||||
|
|
|
|
Below are the maturity dates of Company borrowings (excluding lease liabilities) and their exposure to interest rates:
As of March 31, 2021 |
As of December 31, 2020 |
|||||||
Fixed interest |
||||||||
Less than 1 year |
120,041 | 113,174 | ||||||
1 to 2 years |
97,362 | 105,652 | ||||||
3 to 5 years |
188,102 | 134,623 | ||||||
|
|
|
|
|||||
Total |
405,505 | 353,449 | ||||||
Variable interest |
||||||||
Less than 1 year |
77,144 | 77,053 | ||||||
1 to 2 years |
44,737 | 64,352 | ||||||
3 to 5 years |
22,455 | 44,932 | ||||||
|
|
|
|
|||||
Total |
144,336 | 186,337 | ||||||
|
|
|
|
|||||
Total Borrowings |
549,841 | 539,786 | ||||||
|
|
|
|
See Note 17.4 for information on the fair value of the borrowings.
The carrying amounts of borrowings as of March 31, 2021, is as follows:
Subsidiary (1) |
Bank |
Execution date |
Currency |
Principal |
Interest |
Annual rate |
Maturity date |
Carrying |
||||||||||||
Vista Argentina |
Banco Galicia, Banco Itaú Unibanco, Banco Santander Rio and Citibank NA |
July, 2018 | US | 150,000 | Variable | LIBOR + 4.5% |
July, 2023 | 226,089 | ||||||||||||
150,000 | Fixed | 8% | ||||||||||||||||||
Vista Argentina |
Banco BBVA | July, 2019 | US | 15,000 | Fixed | 9.4% | July, 2022 | 10,163 | ||||||||||||
Vista Argentina |
Banco BBVA | April, 2020 | ARS | 725,000 | Variable | TM20 + 6% |
April, 2021 | 2,166 | ||||||||||||
Vista Argentina |
Banco Macro | July, 2020 | ARS | 1,800,000 | Variable | Badlar + 9% |
July, 2021 | 21,315 | ||||||||||||
Vista Argentina |
Santander International |
January, 2021 | US | 11,700 | Fixed | 1.80% | January, 2026 | 42 | (2) | |||||||||||
Vista Argentina |
Bolsas y Mercados Argentinos S.A. |
March, 2021 | ARS | 4,245,000 | Fixed | 31% | April, 2021 | 16,303 | (3) |
20
VISTA OIL & GAS, S.A.B. DE C.V.
Notes to the unaudited interim condensed consolidated financial statements as of March 31, 2021 and December 31, 2020 and for the three-month periods ended March 31, 2021 and 2020
(Amounts expressed in thousands of US Dollars, except otherwise indicated)
Moreover, Vista Argentina issued a simple non-convertible debt securities, under the name Programa Notas approved by the National Securities Commission in Argentina (CNV). The following chart shows the carrying amount of negotiable obligations (ON):
Subsidiary (1) |
Instrument |
Execution date |
Currency |
Principal |
Interest |
Annual |
Maturity date |
Carrying |
||||||||||||
Vista Argentina |
ON I | July, 2019 | US | 50,000 | Fixed | 7.88% | July, 2021 | 50,543 | ||||||||||||
Vista Argentina |
ON II | August, 2019 | US | 50,000 | Fixed | 8.5% | August, 2022 | 50,300 | ||||||||||||
Vista Argentina |
ON III | February, 2020 | US | 50,000 | Fixed | 3.5% | February, 2024 | 49,754 | ||||||||||||
Vista Argentina |
ON IV | August, 2020 | ARS | 725,650 | Variable | Badlar + 1.37% |
February, 2022 | 8,167 | ||||||||||||
Vista Argentina |
ON V | August, 2020 | US | 20,000 | Fixed | 0% | August, 2023 | 19,807 | ||||||||||||
December, 2020 | US | 10,000 | Fixed | 0% | August, 2023 | 9,899 | ||||||||||||||
Vista Argentina |
ON VI | December, 2020 | US | 10,000 | Fixed | 3.24% | December, 2024 | 9,918 | ||||||||||||
Vista Argentina |
ON VII | March 2021 | US | 42,371 | Fixed | 4.25% | March, 2024 | 41,816 | ||||||||||||
Vista Argentina |
ON VIII (4) | March 2021 | ARS | 3,054,537 | Fixed | 2.73% | September, 2024 | 33,559 |
(1) | Vista Oil & Gas Argentina S.A.U. |
(2) | Net amount of 11,700 from cash granted as security. |
(3) | Net amount of 35,452 from short-term investments granted as security |
(4) | Amount signed in Purchasing Power Units (UVA by its Spanish acronym), updatable by Benchmark Stabilizing Ratio (CER by its Spanish acronym). |
Under the aforementioned program, the Company may list and issue debt securities for a total capital up to 800,000 or its equivalent in other currencies at any time.
17.2 Changes in liabilities arising from financing activities
Changes in the borrowings were as follows:
As of March 31, 2021 |
As of December 31, 2020 |
|||||||
Amounts at beginning of period/year |
539,786 | 451,413 | ||||||
Proceeds from borrowing (1) |
120,752 | 198,618 | ||||||
Borrowing interests (2) (Note 10.2) |
16,758 | 47,923 | ||||||
Payment of borrowing´s costs |
(1,964 | ) | (2,259 | ) | ||||
Payment of borrowings interests |
(19,558 | ) | (43,756 | ) | ||||
Payment of borrowings principal |
(98,937 | ) | (98,761 | ) | ||||
Amortized costs (2) (Note 10.3) |
2,218 | 2,811 | ||||||
Other borrowing interests (2) (Note 10.2) |
640 | |||||||
Changes in foreign exchange rate (2) |
(9,854 | ) | (16,203 | ) | ||||
|
|
|
|
|||||
Amounts at end of period/year |
549,841 | 539,786 | ||||||
|
|
|
|
(1) As March 31, 2021 including 121,444 net of 692 from government bonds granted as security, which generated no cash flows.
(2) Transactions that generated no cash flows.
21
VISTA OIL & GAS, S.A.B. DE C.V.
Notes to the unaudited interim condensed consolidated financial statements as of March 31, 2021 and December 31, 2020 and for the three-month periods ended March 31, 2021 and 2020
(Amounts expressed in thousands of US Dollars, except otherwise indicated)
17.3 Financial instruments by category
The following chart includes the financial instruments broken down by category:
As of March 31, 2021 |
Financial assets/liabilities at amortized cost |
Financial assets/liabilities FVTPL |
Total financial assets/liabilities |
|||||||||
Assets |
||||||||||||
American government bonds (Note 25) |
8,007 | | 8,007 | |||||||||
Trade and other receivables (Note 16) |
444 | | 444 | |||||||||
|
|
|
|
|
|
|||||||
Total non-current financial assets |
8,451 | | 8,451 | |||||||||
|
|
|
|
|
|
|||||||
Cash, banks balances and short-term investments (Note 19) |
127,593 | 35,794 | 163,387 | |||||||||
Trade and other receivables (Note 16) |
43,446 | | 43,446 | |||||||||
|
|
|
|
|
|
|||||||
Total current financial assets |
171,039 | 35,794 | 206,833 | |||||||||
|
|
|
|
|
|
|||||||
Liabilities |
||||||||||||
Borrowings (Note 17.1) |
352,656 | | 352,656 | |||||||||
Warrants (Note 17.4) |
| 431 | 431 | |||||||||
Lease liabilities (Note 14) |
15,994 | | 15,994 | |||||||||
|
|
|
|
|
|
|||||||
Total non-current financial liabilities |
368,650 | 431 | 369,081 | |||||||||
|
|
|
|
|
|
|||||||
Borrowings (Note 17.1) |
197,185 | | 197,185 | |||||||||
Accounts payable and accrued liabilities (Note 24) |
117,911 | | 117,911 | |||||||||
Lease liabilities (Note 14) |
6,524 | | 6,524 | |||||||||
|
|
|
|
|
|
|||||||
Total current financial liabilities |
321,620 | | 321,620 | |||||||||
|
|
|
|
|
|
|||||||
As of December 31, 2020 |
Financial assets/liabilities at amortized cost |
Financial assets/liabilities FVTPL |
Total financial assets/liabilities |
|||||||||
Assets |
||||||||||||
American government bonds (Note 25) |
8,004 | | 8,004 | |||||||||
Trade and other receivables (Note 16) |
546 | | 546 | |||||||||
|
|
|
|
|
|
|||||||
Total non-current financial assets |
8,550 | | 8,550 | |||||||||
|
|
|
|
|
|
|||||||
Cash, banks balances and Short-term investments (Note 19) |
170,851 | 32,096 | 202,947 | |||||||||
Trade and other receivables (Note 16) |
30,109 | | 30,109 | |||||||||
|
|
|
|
|
|
|||||||
Total current financial assets |
200,960 | 32,096 | 233,056 | |||||||||
|
|
|
|
|
|
|||||||
Liabilities |
||||||||||||
Borrowings (Note 17.1) |
349,559 | | 349,559 | |||||||||
Warrants (Note 17.4) |
| 362 | 362 | |||||||||
Lease liabilities |
17,498 | | 17,498 | |||||||||
|
|
|
|
|
|
|||||||
Total non-current financial liabilities |
367,057 | 362 | 367,419 | |||||||||
|
|
|
|
|
|
|||||||
Accounts payable and accrued liabilities (Note 24) |
190,227 | | 190,227 | |||||||||
Borrowings (Note 17.1) |
118,619 | | 118,619 | |||||||||
Lease liabilities |
6,183 | | 6,183 | |||||||||
|
|
|
|
|
|
|||||||
Total current financial liabilities |
315,029 | | 315,029 | |||||||||
|
|
|
|
|
|
22
VISTA OIL & GAS, S.A.B. DE C.V.
Notes to the unaudited interim condensed consolidated financial statements as of March 31, 2021 and December 31, 2020 and for the three-month periods ended March 31, 2021 and 2020
(Amounts expressed in thousands of US Dollars, except otherwise indicated)
Below are income, expenses, profit or loss from each financial instrument:
For the three-month period ended March 31, 2021:
Financial assets/liabilities at amortized cost |
Financial assets/liabilities at FVTPL |
Total | ||||||||||
Interest income (Note 10.1) |
4 | | 4 | |||||||||
Interest expenses (Note 10.2) |
(17,398 | ) | | (17,398 | ) | |||||||
Amortized costs (Note 10.3) |
(2,218 | ) | | (2,218 | ) | |||||||
Changes in the fair value of warrants (Note 10.3) |
| (69 | ) | (69 | ) | |||||||
Net changes in foreign exchange rate (Note 10.3) |
7,404 | | 7,404 | |||||||||
Discount of assets and liabilities at present value (Note 10.3) |
3,105 | | 3,105 | |||||||||
Changes in the fair value of financial assets (Note 10.3) |
| 7,074 | 7,074 | |||||||||
Interest expense on lease liabilities (Note 10.3) |
(300 | ) | | (300 | ) | |||||||
Unwinding of discount on asset retirement obligation (Note 10.3) |
(561 | ) | | (561 | ) | |||||||
Others (Note 10.3) |
(1,648 | ) | | (1,648 | ) | |||||||
|
|
|
|
|
|
|||||||
Total |
(11,612 | ) | 7,005 | (4,607 | ) | |||||||
|
|
|
|
|
|
For the three-month period ended March 31, 2020:
Financial assets/liabilities at amortized cost |
Financial assets/liabilities at FVTPL |
Total | ||||||||||
Interest income (Note 10.1) |
624 | | 624 | |||||||||
Interest expenses (Note 10.2) |
(11,151 | ) | | (11,151 | ) | |||||||
Amortized costs (Note 10.3) |
(593 | ) | | (593 | ) | |||||||
Changes in the fair value of warrants (Note 10.3) |
| 10,769 | 10,769 | |||||||||
Net changes in foreign exchange rate (Note 10.3) |
(611 | ) | | (611 | ) | |||||||
Discount of assets and liabilities at present value (Note 10.3) |
194 | | 194 | |||||||||
Changes in the fair value of financial assets (Note 10.3) |
(4,839 | ) | | (4,839 | ) | |||||||
Impairment of financial assets (Note 10.3) |
| (2,165 | ) | (2,165 | ) | |||||||
Interest expense on lease liabilities (Note 10.3) |
(442 | ) | | (442 | ) | |||||||
Unwinding of discount on asset retirement obligation (Note 10.3) |
(579 | ) | | (579 | ) | |||||||
Others (Note 10.3) |
1,458 | | 1,458 | |||||||||
|
|
|
|
|
|
|||||||
Total |
(15,939 | ) | 8,604 | (7,335 | ) | |||||||
|
|
|
|
|
|
17.4 Fair value
This note includes information on the Companys method for assessing the fair value of sits financial assets and liabilities.
17.4.1 Fair value of the Companys financial assets and liabilities measured at fair value on a recurring basis
The Company classifies the measurements at fair value of financial instruments using a fair value hierarchy, which shows the relevance of the variables applied to carry out these measurements. The hierarchy categorizes the inputs into three levels:
| Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities. |
| Level 2: data other than the quoted prices included in Level 1 that are observable for assets or liabilities, either directly (that is prices) or indirectly (that is derived from prices). |
| Level 3: data on the asset or liability that are based on nonobservable market data (that is, nonobservable information). |
23
VISTA OIL & GAS, S.A.B. DE C.V.
Notes to the unaudited interim condensed consolidated financial statements as of March 31, 2021 and December 31, 2020 and for the three-month periods ended March 31, 2021 and 2020
(Amounts expressed in thousands of US Dollars, except otherwise indicated)
The following chart shows the Companys financial assets and liabilities measured at fair value as of March 31, 2021 and December 31, 2020:
As of March 31, 2021 |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Assets |
||||||||||||||||
Financial assets at fair value through profit or loss |
||||||||||||||||
Short term investments |
35,794 | | | 35,794 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total assets |
35,794 | | | 35,794 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
As of March 31, 2021 |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Liabilities |
||||||||||||||||
Financial liabilities at fair value through profit or loss |
||||||||||||||||
Warrants |
| | 431 | 431 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total liabilities |
| | 431 | 431 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
As of December 31, 2020 |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Assets |
||||||||||||||||
Financial assets at fair value through profit or loss |
||||||||||||||||
Short term investments |
32,096 | | | 32,096 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total assets |
32,096 | | | 32,096 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
As of December 31, 2020 |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Liabilities |
||||||||||||||||
Financial liabilities at fair value through profit or loss |
||||||||||||||||
Warrants |
| | 362 | 362 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total liabilities |
| | 362 | 362 | ||||||||||||
|
|
|
|
|
|
|
|
The value of financial instruments traded in active markets is based on quoted market prices as of the date of these accompanying unaudited interim condensed consolidated financial statements. A market is considered active when quoted prices are available regularly through a stock exchange, a broker, a specific sector entity or regulatory agency, and these prices reflect regular and current market transactions between parties at arms length. The quoted market price used for financial assets held by the Company is the current offer price. These instruments are included in Level 1.
For financial instruments not traded in an active market, the fair value is determined using appropriate valuation techniques. These valuation techniques maximize the use of observable market data, when available, and minimize the use of Companys specific estimates. Should all significant variables used to establish the fair value of a financial instrument be observable, the instrument is included in Level 2.
Should one or more variables used in determining the fair value not be observable in the market, the financial instrument is included in Level 3.
There were no transfers between Level 1 and Level 2 from December 31, 2020 through March 31, 2021 or from December 31, 2019 through December 31, 2020.
The fair value of warrants is determined using the Black & Scholes model considering the expected volatility of the Companys ordinary shares upon estimating the future volatility of Company share price. The risk-free interest rate for the expected useful life of the sponsors warrants is based on the available return of benchmark government bonds with an equivalent remainder term upon the grant. The expected life is based on the contractual terms.
24
VISTA OIL & GAS, S.A.B. DE C.V.
Notes to the unaudited interim condensed consolidated financial statements as of March 31, 2021 and December 31, 2020 and for the three-month periods ended March 31, 2021 and 2020
(Amounts expressed in thousands of US Dollars, except otherwise indicated)
The following assumptions were used in estimating the fair value of warrants as of March 31, 2021:
As of March 31, 2021 |
||||
Annualized volatility |
40.475 | % | ||
Risk free domestic interest rate |
4.891 | % | ||
Risk free foreign interest rate |
0.127 | % | ||
Remainder useful life in years |
2.04 years |
It is a recurring Level 3 fair value measurement. The key Level 3 inputs used by Management to assess fair value are market price and expected volatility. As of March 31, 2021: (i) should market price increase by 0.10 it would increase the obligation by about 84; (ii) should market price decrease by 0.10 it would drop the obligation by about 74; (iii) should volatility increase by 50 basis points, it would rise the obligation by about 37 and; (iv) should volatility slip by 50 basis points, it would reduce the obligation by about 35.
Reconciliation of level 3 measurements at fair value: | As of March 31, 2021 |
As of December 31, 2020 |
||||||
Warrant liability amount at beginning of period/year: |
362 | 16,860 | ||||||
Loss/(Profit) changes in the fair value of warrants (Note 10.3) |
69 | (16,498 | ) | |||||
|
|
|
|
|||||
Amount at end of period/year |
431 | 362 | ||||||
|
|
|
|
17.4.2 Fair value of financial assets and liabilities that are not measured at fair value (but require fair value disclosures)
Except for the information included in the following chart, the Company considers that the carrying amounts of financial assets and liabilities recognized in the interim condensed consolidated financial statements approximate to its fair values, as explained in the related notes.
As of March 31, 2021 | Carrying amount |
Fair value |
Level | |||||||||
Liabilities |
||||||||||||
Borrowings |
549,841 | 565,751 | 2 | |||||||||
|
|
|
|
|||||||||
Total liabilities |
549,841 | 565,751 | ||||||||||
|
|
|
|
17.5 Risk management objectives and policies concerning financial instruments
17.5.1 Financial risk factors
The Companys activities are exposed to several financial risks: market risk (including exchange rate risk, interest rate risk and price risk), credit risk and liquidity risk.
Financial risk management is included in the Companys global policies, and it adopts a comprehensive risk management policy focused on tracking risks affecting the entire Company. This strategy aims at striking a balance between profitability targets and risk exposure levels. Financial risks are derived from the financial instruments to which the Company is exposed during period-end or as of every period-end.
The Companys Financial Department, controls financial risk by identifying, assessing and covering financial risks. The risk management systems and policies are reviewed regularly to show the changes in market conditions and the Companys activities. The Company reviewed its exposure to financial risk factors and identified no significant changes in the risk analysis included in its 2020 annual financial statements except for the following:
25
VISTA OIL & GAS, S.A.B. DE C.V.
Notes to the unaudited interim condensed consolidated financial statements as of March 31, 2021 and December 31, 2020 and for the three-month periods ended March 31, 2021 and 2020
(Amounts expressed in thousands of US Dollars, except otherwise indicated)
17.5.1.1 Market risk
Exchange rate risk
The Companys financial position and results of operations are sensitive to exchange rate changes between the US dollar and the Argentine peso and other currencies. As of March 31, 2021, the Company not performed foreign exchange currency hedge transactions.
Most Company sales are denominated in US dollars, or the changes in sales follow the changes in the US dollar listed price.
During the period elapsed between January 1, 2021, and March 31, 2021, the Argentine peso depreciated by about 9%.
The following chart shows the sensitivity to a reasonable change in the exchange rates of the Argentine peso to the US dollar while maintaining the remainder variables constant. Impact on profit before taxes is related to changes in the fair value of monetary assets and liabilities denominated in currencies other than the US dollar, the Companys functional currency. The Companys exposure to changes in foreign exchange rates for the remainder currencies is immaterial.
As of March 31, 2021 | ||
Changes in interest rates in Argentine pesos |
+/- 26% | |
Effect on profit or loss |
(24,431) /24,431 | |
Effect on equity |
(24,431) /24,431 |
Inflation in Argentina
For the three-month period ended March 31, 2021 and for the year ended December 31, 2020, the Argentine peso depreciated about 9% and 41%, respectively. For the three-month period ended March 31, 2021, the interest rate decreased by about 2 percentage points with respect to the average 40% interest rate in 2020. As of December 31, 2020, the 3-year cumulative inflation rate stood at about 200%.
Interest rate risk in cash flows and fair value
The purpose of interest rate risk management is to minimize finance costs and limit the Companys exposure to interest rate increases.
Variable-rate indebtedness exposes the Companys cash flows to interest rate risk due to the potential volatility. Fixed-rate indebtedness exposes the Company to interest rate risk on the fair value of its liabilities as they could be considerably higher than variable rates. As of March 31, 2021, and December 31, 2020, about 26% and 35% of indebtedness was subject to variable interest rates. For the three-month period ended March 31, 2021 and for the year ended December 31, 2020, the variable interest rate of loans denominated in US dollars stood at 5.53% and 5.69%, respectively, and it amounted to 40.60% and 38.81%, respectively, for loans denominated in Argentine pesos.
The Company expects to lessen its interest rate exposure by analyzing and assessing (i) the different sources of liquidity available in domestic and international financial and capital markets (if available); (ii) alternative (fixed or variable) interest rates, currencies and contractual terms available for companies in a sector, industry and risk similar to the Companys; and (iii) the availability, access and cost of interest rate hedge contracts. Hence, the Company assesses the impact on profit or loss of each strategy on the obligations that represent the main positions to the main interest-bearing positions.
In the case of fixed rates and in view of current market conditions, the Company considers that the risk of a major decrease in interest rates is low; therefore, it does not expect substantial fixed rate debt risk.
For the three-month period ended March 31, 2021 and for the year ended December 31, 2020, the Company did not use derivative financial instruments to mitigate interest rate risks.
26
VISTA OIL & GAS, S.A.B. DE C.V.
Notes to the unaudited interim condensed consolidated financial statements as of March 31, 2021 and December 31, 2020 and for the three-month periods ended March 31, 2021 and 2020
(Amounts expressed in thousands of US Dollars, except otherwise indicated)
Note 18. Inventories
As of March 31, 2021 |
As of December 31, 2020 |
|||||||
Materials and spare parts |
7,464 | 7,743 | ||||||
Crude oil stock (Note 5.2) |
3,027 | 6,127 | ||||||
|
|
|
|
|||||
Total |
10,491 | 13,870 | ||||||
|
|
|
|
Note 19. Cash, bank balances and short-term investments
As of March 31, 2021 |
As of December 31, 2020 |
|||||||
Money market funds |
117,121 | 167,553 | ||||||
Mutual funds |
35,712 | 30,886 | ||||||
Cash in banks |
10,404 | 2,875 | ||||||
Government bonds |
150 | 1,633 | ||||||
|
|
|
|
|||||
Total |
163,387 | 202,947 | ||||||
|
|
|
|
For the purposes of the statement consolidated of cash flows, cash and cash equivalents include the resource available in cash at the bank and investments with a maturity less than three-month. The following chart shows a reconciliation of the movements between cash, banks and short-term investments and cash and cash equivalents:
As of March 31, 2021 |
As of December 31, 2020 |
|||||||
Cash, banks balances and short-term investments |
163,387 | 202,947 | ||||||
Less |
||||||||
Government bonds |
(150 | ) | (1,633 | ) | ||||
|
|
|
|
|||||
Cash and cash equivalents |
163,237 | 201,314 | ||||||
|
|
|
|
Note 20. Share Capital
During the three-month period ended March 31, 2021, 27,167 Series A shares were issued as part of the LTIP granted to the employees of the Company, see more information in Note 34 to the annual consolidated financial statements. No other significant transactions occurred after December 31, 2020.
As of March 31, 2021, and December 31, 2020, the Companys capital stock amounts to 87,878,453 and 87,851,286 fully subscribed and paid Series A shares with no face value, respectively, each entitled to one vote. As of March 31, 2021, and December 31, 2020, the Companys authorized capital includes 40,913,786 and 40,940,953 Series A ordinary shares held in Treasury that may be used with warrants, forward purchase agreements and LTIP.
The variable portion of capital stock is an unlimited amount according to the Companys bylaws and laws applicable, whereas the fixed amount is divided into 2 Class C shares.
Note 21. Provisions
As of March 31, 2021 |
As of December 31, 2020 |
|||||||
Non-current |
||||||||
Asset retirement obligation |
22,166 | 23,349 | ||||||
Environmental remediation |
614 | 560 | ||||||
|
|
|
|
|||||
Total non-current |
22,780 | 23,909 | ||||||
|
|
|
|
27
VISTA OIL & GAS, S.A.B. DE C.V.
Notes to the unaudited interim condensed consolidated financial statements as of March 31, 2021 and December 31, 2020 and for the three-month periods ended March 31, 2021 and 2020
(Amounts expressed in thousands of US Dollars, except otherwise indicated)
As of March 31, 2021 |
As of December 31, 2020 |
|||||||
Current |
||||||||
Asset retirement obligation |
590 | 584 | ||||||
Environmental remediation |
1,077 | 1,141 | ||||||
Contingencies |
355 | 359 | ||||||
|
|
|
|
|||||
Total current |
2,022 | 2,084 | ||||||
|
|
|
|
Note 22. Salaries and social security payable
As of March 31, 2021 |
As of December 31, 2020 |
|||||||
Current |
||||||||
Salaries and social security contributions |
3,588 | 4,479 | ||||||
Provision for gratifications and bonus |
2,949 | 7,029 | ||||||
|
|
|
|
|||||
Total current |
6,537 | 11,508 | ||||||
|
|
|
|
Note 23. Other taxes and royalties payable
As of March 31, 2021 |
As of December 31, 2020 |
|||||||
Current |
||||||||
Royalties |
6,005 | 4,152 | ||||||
Tax withholdings |
1,106 | 843 | ||||||
VAT |
59 | 46 | ||||||
Others |
73 | 76 | ||||||
|
|
|
|
|||||
Total current |
7,243 | 5,117 | ||||||
|
|
|
|
Note 24. Accounts payable and accrued liabilities
As of March 31, 2021 |
As of December 31, 2020 |
|||||||
Current |
||||||||
Accounts payable: |
||||||||
Suppliers |
116,378 | 117,409 | ||||||
|
|
|
|
|||||
Total current accounts payable |
116,378 | 117,409 | ||||||
|
|
|
|
|||||
Accrued liabilities: |
||||||||
Payables to partners for joint operations |
1,217 | 664 | ||||||
Extraordinary fee for the natural gas surplus injection promotion program |
316 | 546 | ||||||
|
|
|
|
|||||
Total current accrued liabilities |
1,533 | 1,210 | ||||||
|
|
|
|
|||||
Total current |
117,911 | 118,619 | ||||||
|
|
|
|
Due to the short-term nature of current accounts payables and accrued liabilities, their carrying amount is deemed to be the same as its fair value. The carrying amount of the non-current accrued liabilities does not differ considerably from its fair value.
28
VISTA OIL & GAS, S.A.B. DE C.V.
Notes to the unaudited interim condensed consolidated financial statements as of March 31, 2021 and December 31, 2020 and for the three-month periods ended March 31, 2021 and 2020
(Amounts expressed in thousands of US Dollars, except otherwise indicated)
Note 25. Employee benefits
The following chart summarizes net expense components and the changes in the liability for long-term employee benefits in the unaudited interim condensed consolidated financial statements:
For the three-month period ended March 31, 2021 |
For the three-month period ended March 31, 2020 |
|||||||
Cost of services |
(5 | ) | (21 | ) | ||||
Cost of interest |
(38 | ) | (32 | ) | ||||
|
|
|
|
|||||
Total |
(43 | ) | (53 | ) | ||||
|
|
|
|
As of March 31, 2021 | ||||||||||||
Present value of the obligation |
Fair value of plan assets |
Net liability at the end of the period |
||||||||||
Amounts at beginning of period |
(11,465 | ) | 8,004 | (3,461 | ) | |||||||
Items classified as loss or profit |
||||||||||||
Cost of services |
(5 | ) | | (5 | ) | |||||||
Cost of interest |
(138 | ) | 100 | (38 | ) | |||||||
Items classified in other comprehensive income |
||||||||||||
Actuarial (loss) |
| (97 | ) | (97 | ) | |||||||
Benefit payments |
212 | (212 | ) | | ||||||||
Payment of contributions |
| 212 | 212 | |||||||||
|
|
|
|
|
|
|||||||
Amounts at end of period |
(11,396 | ) | 8,007 | (3,389 | ) | |||||||
|
|
|
|
|
|
The fair value of plan assets as of every year-end per category, is as follows:
As of March 31, 2021 |
As of December 31, 2020 |
|||||||
American government bonds |
8,007 | 8,004 | ||||||
|
|
|
|
|||||
Total |
8,007 | 8,004 | ||||||
|
|
|
|
Note 23 to the Companys annual financial statements as of December 31, 2020, provides more information on employee defined benefit plans.
Note 26. Related parties transactions and balances
As of March, 31, 2021 and December 31, 2020, the Company has no balances with related parties or relevant transactions to be disclosed other than those included in Note 27 of the annual financial statements.
Note 2.3 to the Companys annual financial statements as of December 31, 2020, provide information on the Groups structure, including information on Company subsidiaries.
Note 27. Commitments and contingencies
There were no significant changes in commitments and contingencies during the three-months period ended March 31, 2021. For a description on the Companys contingency commitments and investment related to its oil and gas properties, see Notes 29 and 30 to the annual consolidated financial statements for 2020.
Note 28. Operations in hydrocarbon consortiums
There were no significant changes to operations in hydrocarbon consortiums during the three-months period ended March 31, 2021. See Note 30 to the annual consolidated financial statements as of December 31, 2020 for more details about operations in hydrocarbon consortiums.
29
VISTA OIL & GAS, S.A.B. DE C.V.
Notes to the unaudited interim condensed consolidated financial statements as of March 31, 2021 and December 31, 2020 and for the three-month periods ended March 31, 2021 and 2020
(Amounts expressed in thousands of US Dollars, except otherwise indicated)
Nota 29. Tax framework
There were no significant changes with respect to tax reform during the three-months period ended March 31, 2021. See Note 33 to the annual consolidated financial statements as of December 31, 2020 for more details.
Note 30. Subsequent events
The Company assessed events subsequent to March 31, 2021, to determine the need of a potential recognition or disclosure in these interim condensed consolidated financial statements. The Company assessed such events through April 27, 2021, date in which these financial statements were made available for issue.
| On April 5, 2021, Vista Argentina paid principal and interest of the loan agreement signed with Banco BBVA Argentina S.A. on April 2020 for a total amount in argentine pesos equivalent to 2,178. |
| On April 5 and 9, 2021, Vista Argentina pre-cancelled the loan agreement signed with Banco Macro on July 2020 for a total amount in argentine pesos equivalent to 21,467. |
There are no other events or transactions between the closing date and the date of issuance of these unaudited interim condensed consolidated financial statements that could significantly affect the Companys financial position or profit or loss.
30