PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
(PAMPA ENERGY INC.)
Building #4
C1425DSR
Buenos Aires
Argentina
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___
registrant in connection with Rule 12g3-2(b): 82- .)
Buenos Aires, August 11th, 2010
Results for the six-month period ended on June 30th, 2010
Pampa Energía S.A. ( Pampa or the Company ), announces the results for the six-month period ended on June 30th, 2010. |
Stock Information | Pampa Energía S.A., the largest integrated electricity company inArgentina that throughits subsidiaries participates in the generation,transmission and distribution of electricity, announces the results forthe six-month period ended on June 30th, 2010: Consolidated net salesof AR$2,273.7 million, 10.3% greater than theAR$2,062.2 million for the same period of 2009, mainly due to 23.9%(AR$203.0 million) and 2.9% (AR$30.7 million) increases in net salesfrom our generation and distribution segments, respectively, partiallyoffset by reductions in net sales of 11.3% (AR$17.1 million) and 97.8%(AR$8.8 million) from our transmission and holding segments,respectively. Consolidated EBITDA1of AR$356.7 million, 21.8% lower than theAR$456.0 million for the same period of 2009, mainly due to decreasesof 19.2% (AR$34.7 million), 17.5% (AR$8.6 million), and 25.7% (AR$62.6million) in the generation, transmission and distribution segments,respectively, partially offset by a reduction in the loss in the holdingsegment (AR$6.5 million). Consolidated net lossof AR$82.0 million, compared to a consolidatednet gain of AR$196.2 million for the same period of 2009, mainly due toa reduction in operating income, lower gains from the repurchases ofour own subsidiaries debt, and the loss from the write off of theinvestment in San Antonio Global that was recorded in our holdingsegment during this period. | |
Buenos Aires Stock Exchange | ||
Ticker: PAMP | ||
NYSE | ||
Ticker: PAM | ||
1 ADS = 25 ordinary shares | ||
For further information, contact: | ||
Ricardo Torres. CEO | ||
Mariano Batistella. Responsible for | ||
Strategic Planning and Investor | ||
Relations | ||
Tel +54-11-4809-9500 | ||
investor@pampaenergia.com | ||
www.pampaenergia.com/ir |
1Consolidated EBITDA represents the consolidated earnings before financial results, net, income taxes, depreciation, amortization, reserve directors options, other income and expenses, net, and minority interest.
3302 Ortiz de Ocampo Street, | Tel +54-11-4809-9500 | |||
Building #4 | investor@pampaenergia.com | 1 | ||
C1425DSR Buenos Aires | www.pampaenergia.com/ir | |||
Argentina |
Main results of the 2ndquarter of 20101:
Consolidated net salesof AR$1,233.5 million in the second quarter of 2010, 20.5% greater than the AR$1,023.6 million for the same period of 2009, mainly due to increases in net sales of 48.5% (AR$213.4 million) and 1.8% (AR$9.2 million) from our generation and distribution segments, respectively, that compensated for decreases in net sales of 13.3% (AR$9.9 million) and 95.6% (AR$3.5 million) from our transmission and holding segments, respectively.
Consolidated EBITDA2of AR$165.6 million, 18.3% lower than the AR$202.6 million for the same period of 2009, mainly due to a 15.1% (AR$10.0 million) increase in the generation segment and a reduction in losses of AR$0.8 million in the holding segment that were more than offset by reductions of 23.6% (AR$6.0 million) in the transmission segment and of 35.6% (AR$41.9 million) in the distribution segment.
Consolidated net lossof AR$87.2 million in the second quarter of 2010, compared to a consolidated net gain of AR$138.1 million for the same period of 2009, mainly due to a reduction in operating income, lower gains from the repurchases of our own subsidiaries debt and the loss from the write off of the investment in San Antonio Global that was recorded in our holding segment during this period.
1. Bonds repurchases
1.1 | Subsidiaries Bonds Repurchases
In 2010, we have continued repurchasing bonds issued by Edenor, EASA, Transener, Central Térmica Güemes and Central Térmica Loma de la Lata.
During the sixth-month period ended on June 30, 2010, Pampa and its subsidiaries have repurchased a total of US$31.5 million of the principal amount of its subsidiaries bonds at an average price of 89% of par value. As a result of these acquisitions, Pampa recorded a consolidated gain of AR$11.9 million.
As of June 30th, 2010, and including the repurchases done in 2008, 2009, and 2010, Pampa and its subsidiaries have repurchased a total of US$365.8 million of principal amount of bonds at an average price of 55% of par value. The following tables summarize our bonds outstanding in pesos and dollars, the repurchases made and the gains generated by repurchases as of June 30th, 2010:
1The financial information presented in this document for the quarters ended on June 30thof 2010 and of 2009 are based on unaudited financial statements prepared according to the accounting standards in force in Argentina corresponding to the six-month periods ended on June 30thof 2010 and of 2009, and the three-month periods ended on March 31stof 2010 and of 2009.
2Consolidated EBITDA represents the consolidated earnings before financial results, net, income taxes, depreciation, amortization, reserve directors options, other income and expenses, net, and minority interest.
3302 Ortiz de Ocampo Street, | Tel +54-11-4809-9500 | |||
Building #4 | investor@pampaenergia.com | 2 | ||
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Argentina |
Bonds in US$
Amount | Amount | Amount | Repurchase | |||||||||||
Issued | Repurchased1 | Outstanding | Results2 | |||||||||||
Subsidiary | Long-Term Notes | Maturity | (US$ thousands) | (US$ thousands) | (US$ thousands) | (AR$ thousands) | Agreed rate | |||||||
Transener | At Par fixed rate | 2016 | 220.000 | 97.458 | 122.542 | 143.600 | 8,875% | |||||||
At Par class 63 | 2016 | 12.397 | 9.322 | 3.075 | 3% to 7% | |||||||||
At Par variable rate | 2019 | 12.656 | 0 | 12.656 | Libor + 0% to 2% | |||||||||
Edenor | At par fixed rate | 2016 | 80.048 | 64.761 | 15.287 | 175.119 | 3% to 10% | |||||||
At Par fixed rate | 2017 | 220.000 | 71.310 | 148.690 | 10,5% | |||||||||
EASA | At Par fixed rate | 2017 | 12.874 | 234 | 12.640 | 101.852 | 3% to 5% | |||||||
At Discount fixed rate | 2016 | 81.997 | 80.829 | 1.168 | 11% | |||||||||
CTG | At Par fixed rate | 2013 | 6.069 | 1.547 | 4.522 | 17.898 | 2,0% | |||||||
At Par fixed rate | 2017 | 22.030 | 18.196 | 3.834 | 10,5% | |||||||||
Loma de la Lata4 | At Discount fixed rate | 2015 | 189.299 | 22.137 | 167.162 | 9.180 | 11,25% | |||||||
Total | 857.370 | 365.794 | 491.576 | 447.648 | ||||||||||
1100%, not adjusted for minority interests. | ||||||||||||||
2Includes AR$435.8 million as of December 31st, 2009. Does not include income tax expense and minority interests. | ||||||||||||||
3Amount issued refers to the amount outstanding as of December 31st, 2008. | ||||||||||||||
4Amount issued includes capitalized interest. |
Bonds in AR$
Subsidiary | Long and Short-Term Notes | Maturity | Amount Issued (AR$ thousands) | Amount Repurchased (AR$ thousands) | Amount Outstanding (AR$ thousands) | Repurchase Results (AR$ thousands) | Agreed rate | |||||||
Edenor | At Par variable rate | 2013 | 69.879(1) | 0 | 69.879(1) | 0 | Badlar Privada + 6,75% | |||||||
Short-term note | 2010 | 48.380 | 0 | 48.380 | Badlar Privada + 3,00% | |||||||||
CPB | 0 | |||||||||||||
Short-term note | 2011 | 66.295 | 0 | 66.295 | Badlar Privada + 3,00% | |||||||||
Total | 184.554 | 0 | 184.554 | 0 | ||||||||||
1Debt Remaining as of 06/30/2010 |
It is important to note that the funds for these repurchases were raised through various shareholders capital contributions received through capital increases at Pampa and its subsidiaries. In the case of bonds repurchased by Pampa, funds remaining from the AR$1,300 million capital increase of February 2007 were used. The bonds acquired by Edenor were purchased with the funds remaining from the US$61 million capital increase of April 2007. Meanwhile, the bonds repurchased by Transener were mainly financed by the collection of the amortization of the canon for the Fourth Line.
Finally, from July 1st, 2010 until the date of this report, Pampa and its subsidiaries have repurchased a total of US$7.3 million in face value of its subsidiaries bonds, having paid US$7.1 million.
3302 Ortiz de Ocampo Street, | Tel +54-11-4809-9500 | |||
Building #4 | investor@pampaenergia.com | 3 | ||
C1425DSR Buenos Aires | www.pampaenergia.com/ir | |||
Argentina |
2. Relevant Events
2.1 | Investment in San Antonio Global Ltd.
As of June 30, 2010 Pampa Inversiones had in its portfolio 2,436,010 common shares of San Antonio Global Ltd. ("San Antonio"), representing 4.5% of its equity capital. San Antonio is a leading company in integral solutions for drilling, services, and management within the gas and oil industry.
Following the end of the second quarter of 2010, and as a consequence of the restructuring of a portion of their financial liabilities, San Antonio has requested a capital increase of approximately US$112 million from its shareholders or interested third-parties in which Pampa Inversiones Board of Directors elected not to participate.
As a consequence, Pampa Inversiones has revalued the estimated recoverable value of its investment in San Antonio, recognizing a write off of AR$78 million that is included in Financial and holding results generated by assets within our Income Statement.
2.2 | Sale of Participation in Ingentis
On July 16, 2010, Inversora Ingentis accepted an irrevocable offer from Petrominera Chubut S.E., to sell 10.95% of its shares in Ingentis S.A. ( Ingentis ). The price of the deal amounts to AR$33.4 million, payable 50% on the date of the closing of the transaction and the remaining 50% in 24 monthly installments, the first of these due six month from the closing date, plus an agreed upon interest. In this manner, Inversora Ingentis reduces its participation in Ingentis to 50.05%.
Furthermore, the offer anticipates that the parties to the agreement will make their best efforts to reach an agreement with the Province of Chubut for a reduction of capital of Ingentis S.A. with the final goal being for Inversora Ingentis to end its participation in this company. Such a capital reduction would imply the distribution of certain assets that Ingentis S.A. owns and it would allow its shareholders to move forward independently in pursue of their own projects.
2.3 | Purchase of Gas Plus from Apache and Partnership Agreement
On August 6, Pampa, through its subsidiaries Petrolera Pampa S.A. and Central Térmica Loma de la Lata S.A., and Apache Energía Argentina S.R.L. ("Apache") signed a letter of intent to jointly engage in the development and exploitation of unconventional gas repositories and has also placed an irrevocable bid for the purchase of natural gas within the framework of the Gas Plus program launched by the Argentine Government.
The partnership with Apache would allow the production of an additional 700,000 m3/day of non conventional natural gas, from reservoirs with low permeability, at the Anticlinal Campamento and Estación Fernández Oro areas, in the provinces of Neuquén and Río Negro. Pampa would have a 15% participation in the necessary investments for the development of this gas production, estimated to be approximately US$8 million, allowing Pampa to obtain its proportional participation in the production. All of this additional production will be assigned to the supply of Central Térmica Loma de la Lata.
Simultaneously, the parties placed an irrevocable bid for the acquisition of 800,000 m3/day of Gas Plus from Apache for a three year period, seeking also to ensure the gas supply required by Central Térmica Loma de la Lata. The agreed upon price for Gas Plus, authorized by the Secretariat of Energy, is US$5.00/MMBtu.
3302 Ortiz de Ocampo Street, | Tel +54-11-4809-9500 | |||
Building #4 | investor@pampaenergia.com | 4 | ||
C1425DSR Buenos Aires | www.pampaenergia.com/ir | |||
Argentina |
3. Financial Highlights
3.1 |Consolidated Balance Sheet (AR$)
06.30.10 | 06.30.10 | |||||
ASSETS | LIABILITIES | |||||
CURRENT ASSETS | CURRENT LIABILITIES | |||||
Cash and banks | 117.793.706 | Accounts payable | 508.676.880 | |||
ST Investments | 575.278.435 | Financial debt | 690.883.143 | |||
Trade receivables, net | 767.177.973 | Salaries and social security payable | 147.855.882 | |||
Other receivables, net | 307.976.231 | Tax payable | 189.470.303 | |||
Inventories | 28.484.028 | Other liabilities | 61.349.914 | |||
Other assets | 227.423.815 | Provisions | 60.216.000 | |||
Total current assets | 2.024.134.188 | |||||
Total current liabilities | 1.658.452.122 | |||||
NON-CURRENT ASSETS | ||||||
Trade receivables | 281.120.982 | NON-CURRENT LIABILITIES | ||||
LT Investments | 68.822.719 | Accounts payable | 80.617.484 | |||
Other receivables, net | 190.843.649 | Financial debt | 1.746.626.511 | |||
Inventories | 19.974.269 | Salaries and social security payable | 62.871.602 | |||
Fixed assets, net | 6.351.098.678 | Taxes payable | 567.482.102 | |||
Intangible assets, net | 279.260.489 | Other payables | 809.373.337 | |||
Other assets | 101.652.579 | Provisions | 17.519.401 | |||
Sub-total non-current assets | 7.292.773.365 | Total non-current liabilities | 3.284.490.437 | |||
Total liabilities | 4.942.942.559 | |||||
Goodwill, net | 582.720.560 | Minority interest | 1.697.499.135 | |||
Total non-current assets | 7.875.493.925 | Shareholders equity | 3.259.186.419 | |||
Total assets | 9.899.628.113 | Total liabilities, minority interest and shareholders equity | 9.899.628.113 |
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Building #4 | investor@pampaenergia.com | 5 | ||
C1425DSR Buenos Aires | www.pampaenergia.com/ir | |||
Argentina |
3.2 | Consolidated Income Statements (AR$)
Six months ended June 30 of | ||||
2010 | 2009 | |||
Sales revenue | 2.273.734.915 | 2.062.195.050 | ||
Cost of sales | (1.821.270.046) | (1.570.217.598) | ||
Gross profit | 452.464.869 | 491.977.452 | ||
Selling expenses | (101.737.565) | (64.132.572) | ||
Administrative expenses | (160.505.945) | (136.744.246) | ||
Goodwill amortization | (9.954.649) | (9.981.145) | ||
Operating income | 180.266.710 | 281.119.489 | ||
Financial and holding results generated by assets: | ||||
Interest income | 18.828.250 | 23.859.522 | ||
Taxes and commissions | (28.283.550) | (31.707.343) | ||
Foreign currency exchange difference | 19.915.367 | 77.074.567 | ||
Result of receivables measured at present value | 9.973.062 | (3.403.420) | ||
Holding results of financial assets | (7.877.237) | 94.431.348 | ||
Impairment of Investments | (77.946.474) | - | ||
Impairment of fixed assets and other assets | (431.064) | (17.617.332) | ||
Other financial results | 2.784.526 | 2.989.494 | ||
Sub-total | (63.037.120) | 145.626.836 | ||
Financial and holding results generated by liabilities: | ||||
Interest expense | (87.142.387) | (106.973.389) | ||
Foreign currency exchange difference | (47.925.437) | (172.069.386) | ||
Financial debt repurchase results | 11.891.777 | 209.936.300 | ||
Taxes and commissions | (7.621.178) | (4.110.536) | ||
Sub-total | (130.797.225) | (73.217.011) | ||
Total financial and holding results, net | (193.834.345) | 72.409.825 | ||
Other income and expenses, net | 232.690 | 15.116.100 | ||
Income before income taxes and minority interest | (13.334.945) | 368.645.414 | ||
Income tax and tax on assets | (53.497.103) | (98.235.392) | ||
Minority interest | (15.132.168) | (74.239.894) | ||
Net income | (81.964.216) | 196.170.128 | ||
Basic income per share | (0,0624) | 0,1465 | ||
Diluted income per share | (0,0561) | 0,1436 |
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Argentina |
3.3 | Consolidated Income Statements 2Q10 y 2Q09 (AR$)
2Q10 | 2Q09 | |||
Sales revenue | 1.233.535.152 | 1.023.644.302 | ||
Cost of sales | (1.020.157.889) | (814.172.878) | ||
Gross profit | 213.377.263 | 209.471.424 | ||
Selling expenses | (51.068.187) | (18.410.432) | ||
Administrative expenses | (81.939.475) | (70.602.784) | ||
Goodwill amortization | (5.000.440) | (4.989.778) | ||
Operating income | 75.369.161 | 115.468.430 | ||
Financial and holding results generated by assets: | ||||
Interest income | 12.187.740 | 11.454.254 | ||
Taxes and commissions | (17.404.881) | (18.924.953) | ||
Foreign currency exchange difference | 2.701.517 | 28.083.580 | ||
Result of receivables measured at present value | 1.938.657 | (7.618.806) | ||
Holding results of financial assets | 6.937.802 | 68.884.651 | ||
Impairment of Investments | 12.408 | (991.660) | ||
Impairment of fixed assets and other assets | (77.946.474) | - | ||
Other financial results | (1.630.950) | 3.196.276 | ||
Sub-total | (73.204.181) | 84.083.342 | ||
Financial and holding results generated by liabilities: | ||||
Interest expense | (45.684.729) | (41.785.562) | ||
Foreign currency exchange difference | (4.163.445) | (51.727.077) | ||
Financial debt repurchase results | 833.535 | 87.281.694 | ||
Taxes and commissions | 1.441.210 | 2.642.763 | ||
Other financial results | (5.802.633) | 2.201.777 | ||
Sub-total | (53.376.062) | (1.386.405) | ||
Total financial and holding results, net | (126.580.243) | 82.696.937 | ||
Other income and expenses, net | (5.329.270) | 18.587.379 | ||
Income before income taxes and minority interest | (56.540.352) | 216.752.746 | ||
Income tax and tax on assets | (26.847.378) | (44.257.606) | ||
Minority interest | (3.808.638) | (34.422.432) | ||
Net income | (87.196.368) | 138.072.708 | ||
Basic income per share | (0,0664) | 0,1037 | ||
Diluted income per share | (0,0597) | 0,1008 |
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Argentina |
4 | Results analysis for the second quarter ended on June 30th, 2010 compared to the second quarter ended on June 30th, 2009
During the second quarter of 2010, we recorded consolidated net sales of AR$1,233.5 million, 20.5% greater than the AR$1,023.6 million for the same period of 2009, mainly due to increases in net sales of 48.5% (AR$213.4 million) and 1.8% (AR$9.2 million) in the generation and distribution segments, respectively, partially offset by decreases in net sales of 13.3% (AR$9.9 million) and of 95.6% (AR$3.5 million) in the transmission and holding segments, respectively.
Consolidated EBITDA1for the second quarter of 2010 amounted to AR$165.6 million, 18.3% lower than the AR$202.6 million for the same period of 2009, mainly due to a 15.1% (AR$10.0 million) increase in the generation segment and a reduction in losses of AR$0.8 million in the holding segment that were more than offset by reductions of 23.6% (AR$6.0 million) in the transmission segment and of 35.6% (AR$41.9 million) in the distribution segment.
Also, we have recorded a consolidated gain on the repurchase of our own subsidiaries debt of AR$0.8 million, lower than the AR$87.3 million for the same period of 2009, due to a lower volume of bonds repurchased during the second quarter of 2010 and increased prices in the market.
Finally, we have presented a consolidated net loss of AR$87.2 million, compared to a consolidated net gain of AR$138.1 million for the same period of 2009, mainly due to a reduction in operating income, lower gains from the repurchases of our own subsidiaries debt and the loss from the write off of the investment in San Antonio Global that was recorded in our holding segment during this period.
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Argentina |
Generation Segment
Six months ended on June 30 of: | ||||||||||||
Change | ||||||||||||
Generation Segment, consolidated (AR$ millions) | 2Q10 | 2Q09 | 2Q10 | 2010 | 2009 | Change | ||||||
Sales revenue | 653,8 | 440,4 | 48,5% | 1.051,8 | 848,8 | 23,9% | ||||||
Cost of sales | (565,3) | (362,5) | 55,9% | (880,0) | (657,4) | 33,9% | ||||||
Gross profit | 88,6 | 77,9 | 13,7% | 171,8 | 191,4 | -10,2% | ||||||
Selling expenses | (7,1) | (5,8) | 23,2% | (11,2) | (7,8) | 43,3% | ||||||
Administrative expenses | (23,4) | (21,3) | 9,9% | (46,5) | (34,3) | 35,5% | ||||||
Goodwill amortization | (3,8) | (3,7) | 1,8% | (7,6) | (7,5) | 1,8% | ||||||
Operating income | 54,3 | 47,1 | 15,3% | 106,5 | 141,8 | -24,9% | ||||||
Financial and holding results: | ||||||||||||
Generated by assets | 8,5 | 28,1 | -69,6% | 28,4 | 70,1 | -59,4% | ||||||
Generated by liabilities | (14,9) | (23,5) | -36,7% | (48,0) | (89,9) | -46,6% | ||||||
Other income and expenses, net | 1,0 | (1,5) | NA | 1,0 | 0,3 | 195,9% | ||||||
(Loss) Gain before income tax and minority interest | 49,0 | 50,3 | -2,5% | 87,9 | 122,3 | -28,1% | ||||||
Income tax | (18,8) | (16,2) | 15,6% | (34,3) | (46,4) | -26,1% | ||||||
Minority interest | (10,2) | (8,1) | 26,2% | (22,9) | (24,2) | -5,4% | ||||||
Net income (Loss) for the period | 20,0 | 25,9 | -22,8% | 30,8 | 51,7 | -40,6% | ||||||
EBITDA1 | 76,0 | 66,0 | 15,1% | 146,0 | 180,6 | -19,2% |
Net sales in the second quarter of 2010 from our generation activities increased by 48.5% to AR$653.8 million from AR$440.4 million for the same period of 2009, mainly due to a decrease in the amount of electricity sold that was more than more than offset by an increase in the average electricity prices in the period. Net consolidated sales of the segment include sales of energy and services, and we eliminate the intercompany sales within the segment. In the second quarters of 2010 and 2009 energy sales were AR$652.7 million and AR$442.1 million, respectively, sales of services (from Pampa Generacion) were AR$19.2 million and AR$10.4 million, respectively, intercompany eliminations for sales of services were AR$17.3 million and AR$9.2 million, respectively, and intercompany eliminations for other sales were AR$0.7 million and AR$2.9 million, respectively. The AR$210.5 million increase in energy sales was mainly due to the fact that the increase in the average electricity prices calculated for our subsidiaries (AR$311.7 per MWh for the second quarter of 2010, compared to AR$203.0 per MWh for the same period of 2009, that would represent an increase of AR$236.9 million), more than compensated the decrease in the quantity of electricity sold (2,094.0 GWh in the second quarter of 2010, compared to 2,178.6 GWh for the same period of 2009, that would represent a reduction of AR$26.4 million). Average electricity prices increases reflect the average fuel cost increases (especially the higher cost and consumption of fuel oil at Piedra Buena), the higher price of electricity of our term electricity contracts (Güemes, export contracts), and the increase in sales from Energy Plus contracts. The decreased generation of the second quarter is due to a reduction in generation at Central Térmica Loma de la Lata, Central Piedra Buena, and Central Térmica Güemes, mainly explained by a lower utilization required by the syst em and lower availability of natural gas. Also, an increase in maintenance work was performed at Central Térmica Güemes while work was also undertaken at Central Térmica Loma de la Lata to adapt gas turbines in order to connect them to perform as a closed cycle.
The cost of sales increased by 55.9% to AR$565.3 million in the second quarter of 2010 from AR$362.5 million in the same period of 2009, primarily due to a AR$165.5 million increase in the cost of fuel expenses (mostly due to the higher cost and volume of fuel oil in the second quarter of 2010),
1Consolidated EBITDA represents the consolidated earnings before financial results, net, income taxes, depreciation, amortization, reserve directors options, other income and expenses, net, and minority interest.
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an increase in the cost of energy purchases of AR$7.4 million at our hydro units and of AR$22.9 million at our thermal units, and to an increase in personnel and third party fees costs of AR$0.3 million at our hydro units and of AR$7.3 million at our thermal units.
Therefore, the gross profit related to our generation activities increased by 13.7% to AR$88.6 million in the second quarter of 2010 from AR$77.9 million in the same period of 2009, mainly due to the higher average electricity prices than more than compensated the lower volume of electricity sold and the increase in cost of sales. The gross margin related to our generation activities decreased by 23.4% to 13.5% over sales for the second quarter of 2010 from 17.7% over sales for the same period of 2009, primarily due to an increase in energy purchases to supply contracts and to the higher impact, per unit of sales, of fixed operation costs due to its increase and to the lower generation between the periods being compared, at our thermal generation units.
The selling expenses increased to AR$7.1 million in the second quarter of 2010 from AR$5.8 million in the same period of 2009. In addition, administrative expenses increased to AR$23.4 million for the second quarter of 2010 from AR$21.3 million in the same period of 2009.
The operating income related to our generation activities increased by 15.3% to AR$54.3 million for the second quarter of 2010, from AR$47.1 million in the same period of 2009. The total operating margin related to our generation activities decreased by 22.4% to 8.3% over sales for the second quarter of 2010 from 10.7 % over sales for the same period of 2009, mainly as a consequence of the reduction in the gross margin.
Consolidated EBITDA1associated with our generation activities increased 15.1% to AR$76.0 million in the second quarter of 2010, compared to AR$66.0 million in the same period of 2009.
Financial and holding results, net, related to our generation activities represented a loss of AR$6.3 million for the second quarter of 2010 compared to a gain of AR$4.7 million for the same period of 2009, primarily due to losses generated by net interest expenses (AR$8.7 million) and losses generated by other results net (AR$9.6 million), that were partially compensated by gains from holding results on financial assets (AR$3.7 million) and by gains from net foreign exchange differences (AR$7.4 million). In the same period of 2009 our generation segment registered losses from net interest expenses (AR$20.9 million) and from impairment of assets (AR$1.0 million) that were more than offset by gains on net foreign exchange differences (AR$6.5 million), gains from the holding of financial assets (AR$9.0 million) and others.
The generation segment had other income, net of AR$1.0 million for the second quarter of 2010. Additionally, the generation segment recorded a charge for income taxes of AR$18.8 million for the second quarter of 2010 and a charge for minority interests of AR$10.2 million.
Finally, our generation activities recorded a net gain of AR$20.0 million for the second quarter of 2010, compared to net gain of AR$25.9 million for the same period of 2009.
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Argentina |
Transmission Segment
Six months ended on June 30 of: | ||||||||||||
Change | ||||||||||||
Transmission Segment, consolidated (AR$ millions) | 2Q10 | 2Q09 | 2Q10 | 2010 | 2009 | Change | ||||||
Sales revenue | 64,2 | 74,1 | -13,3% | 134,5 | 151,6 | -11,3% | ||||||
Cost of sales | (49,8) | (55,5) | -10,3% | (104,6) | (116,0) | -9,8% | ||||||
Gross profit | 14,4 | 18,6 | -22,2% | 29,9 | 35,6 | -16,1% | ||||||
Selling expenses | - | - | NA | - | - | NA | ||||||
Administrative expenses | (10,5) | (8,6) | 22,9% | (20,2) | (16,9) | 19,4% | ||||||
Goodwill amortization | 0,2 | 0,2 | -4,6% | 0,4 | 0,4 | 7,0% | ||||||
Operating income | 4,1 | 10,2 | -59,7% | 10,1 | 19,1 | -47,2% | ||||||
Financial and holding results: | ||||||||||||
Generated by assets | 2,3 | 5,9 | -61,5% | 2,9 | 7,9 | -63,5% | ||||||
Generated by liabilities | (13,5) | (6,1) | 121,3% | (27,6) | 2,5 | NA | ||||||
Other income and expenses, net | 1,2 | 1,7 | -28,5% | 1,6 | 1,7 | -3,5% | ||||||
(Loss) Gain before income tax and minority interest | (5,9) | 11,7 | -150,6% | (13,0) | 31,2 | -141,6% | ||||||
Income tax | 0,3 | (3,9) | NA | 0,8 | (3,0) | NA | ||||||
Minority interest | 3,4 | (3,6) | NA | 7,1 | (12,8) | NA | ||||||
Net income (Loss) for the period | (2,3) | 4,2 | -154,2% | (5,1) | 15,5 | -133,1% | ||||||
EBITDA1 | 19,4 | 25,4 | -23,6% | 40,6 | 40,7 | -17,5% |
Transener`s Consolidation Summary (AR$ millions) | 2Q10 | 2Q09 | ||
Net Income (Loss) Transener | (13,5) | 11,0 | ||
- 73.6% M inority Interests | 9,9 | (8,1) | ||
- Other consolidation adjustments2 | 1,3 | 1,3 | ||
Net Income (Loss) Transmission Segment | (2,3) | 4,2 |
Net sales in connection with our transmission activities decreased by 13.3% to AR$64.2 million for the second quarter of 2010, compared to AR$74.1 million for the same period of 2009. Net regulated sales decreased to AR$34.0 million for the second quarter of 2010, from AR$39.6 million for the same period of 2009, mostly due to the recognition in the second quarter of 2010 of the monetary penalties paid in this period related to the effect over service quality of the fire of a transformer station in May 2007 (AR$3.7 million). Royalties for the Fourth Line where almost level at AR$10.9 million for the second quarter of 2010 compared to AR$10.7 million for the same period of 2009. Other net revenues decreased to AR$19.3 million for the second quarter of 2010 from AR$23.7 million for the second quarter of 2009 mainly as the result of the reduction (AR$7.3 mil lion) of sales related to the installation and construction work at the transforming stations of Bahia Blanca, Chocón and El Recreo that were included in the second quarter of 2009 that were partially compensated by an increase in supervisory fees (AR$3.3 million) and by the increase in non regulated sales at Transba and Transener Internacional (AR$0.8 million).
The cost of sales decreased by 10.3% to AR$49.8 million in the second quarter of 2010 compared to AR$55.5 million for the same period of 2009, mainly due to a decrease in materials for
2Includes adjustments to deferred tax liabilities generated by fixed assets and goodwill amortization.
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work related to the completion of installation and construction work described above that more than compensated wage increases amongst periods.
Therefore, gross profit related to our transmission activities decreased by 22.2% to AR$14.4 million for the second quarter of 2010 from AR$18.6 million for the same period of 2009, primarily due to the decrease in net regulated sales and the increase in salaries and social security charges. The gross margin related to our transmission activities decreased 10.3% to 22.5% over sales for the second quarter of 2010 compared to 25.1% over sales for the same period of 2009 mainly due to wages increases.
We do not record selling expenses related to our transmission activities. Administrative expenses increased by 22.9% to AR$10.5 million for the second quarter of 2010 from AR$8.6 million for the same period of 2009.
Operating income decreased by 59.7% to AR$4.1 million for the second quarter of 2010 from AR$10.2 million in the same period of 2009. The total operating margin decreased to 6.4% over sales for the second quarter of 2010 from 13.8% over sales for the same period of 2009, reflecting mainly the impact of wages increases.
The consolidated EBITDA1related to our transmission activities decreased by 23.6% to AR$19.4 million for the second quarter of 2010 from AR$25.4 million in the same period of 2009, mainly explained by a decrease in regulated sales and to increases in wages.
Financial and holding results, net, represented a loss of AR$11.2 million for the second quarter of 2010 compared to a loss of AR$0.2 million for the same period of 2009, primarily due to the losses generated by net interest expenses (AR$8.2 million) and by net foreign exchange differences (AR$1.9 million). In the same period of 2009 our transmission segment recorded losses related to foreign currency exchange differences (AR$5.7 million) and for net interest expenses (AR$5.6 million) and others, that were partially compensated by gains from the repurchase of Transener s own financial debt (AR$12.2 million).
The transmission segment had other income, net of AR$1.2 million for the second quarter of 2010. Additionally, the transmission segment recorded a benefit for income taxes of AR$0.3 million for the second quarter of 2010 and a benefit for minority interest of AR$3.4 million.
Finally, our transmission activities recorded a net loss of AR$2.3 million for the second quarter of 2010, compared to a net gain of AR$4.2 million for the same period of 2009.
1Consolidated EBITDA represents the consolidated earnings before financial results, net, income taxes, depreciation, amortization, reserve directors options, other income and expenses, net, and minority interest.
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Argentina |
Distribution Segment
Six months ended on June 30 of: | ||||||||||||
Change | ||||||||||||
Distribution Segment, consolidated (AR$ million) | 2Q10 | 2Q09 | 2Q10 | 2010 | 2009 | Change | ||||||
Sales revenue | 517,4 | 508,3 | 1,8% | 1.090,9 | 1.060,2 | 2,9% | ||||||
Cost of sales | (405,6) | (395,0) | 2,7% | (837,2) | (793,0) | 5,6% | ||||||
Gross profit | 111,9 | 113,3 | -1,2% | 253,7 | 267,2 | -5,0% | ||||||
Selling expenses | (43,9) | (12,3) | 256,0% | (90,5) | (55,7) | 62,4% | ||||||
Administrative expenses | (41,8) | (31,9) | 31,1% | (81,6) | (65,1) | 25,5% | ||||||
Goodwill amortization | (1,4) | (1,4) | 0,1% | (2,8) | (2,8) | 0,0% | ||||||
Operating income | 24,7 | 67,6 | -63,5% | 78,8 | 143,6 | -45,1% | ||||||
Financial and holding results: | ||||||||||||
Generated by assets | 1,2 | 18,9 | -93,5% | 5,9 | 27,8 | -78,7% | ||||||
Generated by liabilities | (40,9) | (46,9) | -12,8% | (99,4) | (102,9) | -3,4% | ||||||
Other income and expenses, net | (4,8) | 18,6 | -125,9% | (8,2) | 13,2 | -162,2% | ||||||
(Loss) Gain before income tax and minority interest | (19,8) | 58,1 | -134,1% | (22,8) | 81,8 | -127,9% | ||||||
Income tax | 2,0 | (25,1) | NA | (5,7) | (48,1) | -88,2% | ||||||
Minority interest | 3,0 | (22,7) | NA | 0,6 | (37,3) | NA | ||||||
Net income (Loss) for the period | (14,8) | 10,4 | -243,3% | (27,9) | (3,6) | 675,1% | ||||||
EBITDA1 | 75,6 | 117,5 | -35,6% | 180,5 | 243,1 | -25,7% |
Edenor`s Consolidation Summary (AR$ millions) | 2Q10 | 2Q09 | ||
Net Income (Loss) Edenor | (6,3) | 46,9 | ||
- 48.5% M inority Interests | 3,0 | (22,7) | ||
- Loss Holding Company - EASA2 | (12,3) | (12,9) | ||
- Other consolidation adjustments3 | 0,7 | (0,8) | ||
Net Income (Loss) Distribution Segment | (14,8) | 10,4 |
Net sales in connection with our distribution activities increased by 1.8% to AR$517.4 million for the second quarter of 2010 compared to AR$508.3 million for the same period of 2009, mainly due to an increase in the volume of energy sold (an increase of 4.5% between the two quarters) which was partially offset by a decrease in the energy purchase price applied to certain customers due to the application of the new tariff scheme from June 1, 2010. The modification to the tariff scheme did not have any effect on the portion of the tariff that is received by Edenor (the value added of distribution, or VAD).
Cost of sales increased by 2.7% to AR$405.6 million for the second quarter of 2010 compared to AR$395.0 million for the same period of 2009, mainly due to the increase in third party fees and in salaries and social security charges related to wages increases that more than offset the reduction in the cost of energy purchases.
2Does not include results from its participation in controlled company, Edenor.
3Includes depreciation for the higher value of fixed assets and of intangible assets recognized at the time of the acquisition, differences for deferred tax liabilities and goodwill amortization.
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Therefore, gross profit related to our distribution activities decreased by 1.2% to AR$111.9 million for the second quarter of 2010 compared to AR$113.3 million for the same period of 2009. The gross margin related to our distribution activities decreased by 3.0% to 21.6% over sales for the second quarter of 2010 from 22.3% over sales for the same period of 2009. Both values reflect mainly the impact of wages increases.
Selling expenses increased to AR$43.9 million for the second quarter of 2010 compared to AR$12.3 million for the same period of 2009, primarily due to the recovery of allowances for doubtful accounts (AR$21.5 million) that were recorded in the second quarter of 2009 which reverted in the second quarter of 2010 where we recorded an increase in allowances for doubtful accounts of AR$4.1 million.
Administrative expenses increased by 31.1% to AR$41.8 million for the second quarter of 2010 compared to AR$31.9 million for the same period of 2009, primarily due to increases between periods of leases and insurance (AR$3.1 million) and of third party fees and in wages (AR$5.2 million).
Operating income of our distribution activities decreased by 63.5% to AR$24.7 million for the second quarter of 2010 compared to AR$67.6 million for the same period of 2009. The total operating margin decreased by 64.1% to 4.8% over sales for the second quarter of 2010 from 13.3% over sales for the same period of 2009.
Consolidated EBITDA1related to our distribution activities decreased by 35.6% to AR$75.6 million for the second quarter of 2010 compared to AR$117.5 million for the same period of 2009.
Financial and holding results, net, related to our distribution activities represented a loss of AR$39.7 million for the second quarter of 2010 compared to a loss of AR$28.1 million for the same period of 2009, primarily due to losses related to net interest expenses (AR$20.1 million), related to net foreign exchange differences (AR$12.5 million), and others, that more than compensated gains from the holding of financial assets (AR$4.5 million).
The distribution segment had other expenses, net of AR$4.8 million for the second quarter of 2010 compared to other income net of AR$18.6 million for the same period of 2009. In the second quarter of 2009 we recorded the recovery of the allowance for tax contingencies for AR$23.4 million. Additionally, the distribution segment recorded a benefit for income taxes of AR$2.0 million for the second quarter of 2010 and a benefit for minority interests of AR$3.0 million.
Finally, our distribution activities registered a net loss of AR$14.8 million for the second quarter of 2010, compared to a net gain of AR$10.4 million for the same period of 2009.
3302 Ortiz de Ocampo Street, | Tel +54-11-4809-9500 | |||
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Argentina |
Holding Segment
Six months ended on June 30 of: | ||||||||||||
Change | ||||||||||||
Holding Segment, consolidated (AR$ million) | 2Q10 | 2Q09 | 2Q10 | 2010 | 2009 | Change | ||||||
Sales revenue | 0,2 | 3,7 | -95,6% | 0,2 | 9,0 | -97,8% | ||||||
Cost of sales | (0,1) | (1,5) | -91,1% | (0,2) | (4,5) | -96,7% | ||||||
Gross profit | 0,0 | 2,2 | -98,6% | 0,0 | 4,4 | -99,0% | ||||||
Selling expenses | (0,0) | (0,3) | -89,2% | (0,1) | (0,6) | -88,7% | ||||||
Administrative expenses | (7,7) | (11,3) | -31,8% | (15,1) | (27,1) | -44,1% | ||||||
Goodwill amortization | - | (0,1) | -100,0% | - | (0,1) | -100,0% | ||||||
Operating income | (7,7) | (9,5) | -18,7% | (15,2) | (23,4) | -35,2% | ||||||
Financial and holding results: | ||||||||||||
Generated by assets | (77,7) | 31,5 | -346,5% | (84,4) | 50,8 | -266,2% | ||||||
Generated by liabilities | 8,3 | 74,8 | -88,9% | 28,3 | 106,0 | -73,3% | ||||||
Other income and expenses, net | (2,7) | (0,2) | NA | 5,8 | (0,1) | NA | ||||||
(Loss) Gain before income tax and minority interest | (79,8) | 96,7 | -182,6% | (65,5) | 133,3 | -149,1% | ||||||
Income tax | (10,3) | 0,9 | NA | (14,3) | (0,7) | NA | ||||||
Minority interest | - | - | NA | - | - | NA | ||||||
Net income (Loss) for the period | (90,1) | 97,6 | -192,3% | (79,7) | 132,6 | -160,1% | ||||||
EBITDA1 | (5,4) | (6,2) | -14,2% | (10,4) | (16,9) | -38,4% |
Net sales in connection with our holding segment decreased to AR$0.2 million for the second quarter of 2010 compared to AR$3.7 million for the same period of 2009. In both quarters those sales are all related to sales at our real estate business.
Cost of sales related to our holding segment represents the cost of sales of our real estate activities, and was ARS0.1 million for the second quarter of 2010 compared to AR$1.5 million for the same period of 2009.
Therefore, gross profit related to our holding segment decreased to AR$30 thousands for the second quarter of 2010 compared to AR$2.2 million for the same period of 2009, due to the decrease in revenues described above.
Our selling expenses amounted to AR$33 thousand for the second quarter of 2010 and represented expenses from our real estate activities. Administrative expenses amounted to AR$7.7 million for the second quarter of 2010 compared to AR$11.3 million for the same period of 2009, mainly due to the decrease in third party fees (AR$2.2 million) between periods.
Operating losses related to our holding segment amounted to AR$7.7 million for the second quarter of 2010 compared to operating losses of AR$9.5 million for the same period of 2009.
Consolidated EBITDA1related to our holding segment represented a loss of AR$5.4 million for the second quarter of 2010, mainly explained by reduced sales of the segment that did not compensate for the personnel cost and third parties expenses necessary for providing the services offered to our subsidiaries.
Financial and holding results, net, related to our holding activities represented a loss of AR$69.4 million for the second quarter of 2010 compared to a gain of AR$106.3 million for the same
1Consolidated EBITDA represents the consolidated earnings before financial results, net, income taxes, depreciation, amortization, reserve directors options, other income and expenses, net, and minority interest.
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period of 2009, primarily due to a loss from the write off of the investment in San Antonio Global Ltd. that were held by our subsidiary Pampa Inversiones (AR$77.9 million), which was partially offset by gains generated by net foreign exchange differences (AR$5.7 million), net interest expense (AR$3.4 million) and others. In the second quarter of 2009, our holding segment recorded gains generated by the repurchase of financial debt from our subsidiaries (AR$72.1 million) and by holding of financial assets (AR$23.2 million).
The holding segment recorded other expenses, net of AR$2.7 million for the second quarter of 2010. Also, the holding segment recorded an income tax charge of AR$10.3 million for the second quarter of 2010.
Finally, our holding segment registered a net loss of AR$90.1 million for the second quarter of 2010, compared to AR$97.6 million gain for the same period of 2009.
3302 Ortiz de Ocampo Street, | Tel +54-11-4809-9500 | |||
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5. Summary of Electricity Generation
The following table summarizes Pampa s electricity generation assets:
Hidroelectric | Thermal | |||||||||||
Summary of Electricity Generation Assets | HINISA | HIDISA | CTG | CTLLL | CPB | Total | ||||||
Installed Capacity (MW) | 265 | 388 | 361 | 369 | 620 | 2.003 | ||||||
Maket Share | 1,0% | 1,4% | 1,3% | 1,3% | 2,2% | 7,2% | ||||||
Net Generation Jan-Jun 2010 (GWh) | 431 | 301 | 647 | 319 | 1.210 | 2.907 | ||||||
Maket Share | 0,8% | 0,5% | 1,2% | 0,6% | 2,2% | 5,2% | ||||||
Sales Jan-Jun 2010 (GWh) | 588 | 459 | 1.084 | 401 | 1.648 | 4.180 | ||||||
Net Generation Jan-Jun 2009 (GWh) | 428 | 327 | 877 | 632 | 1.668 | 3.933 | ||||||
Variation Net Generation 1H10 - 1H09 | 0,7% | -8,0% | -26,3% | -49,5% | -27,5% | -26,1% | ||||||
Sales Jan-Jun 2009 (GWh) | 591 | 490 | 1.027 | 641 | 2.000 | 4.749 | ||||||
Average Price Jan-Jun 2010 (AR$ / MWh) | 149,3 | 174,6 | 223,5 | 161,1 | 349,5 | 251,4 | ||||||
Average Gross Margin Jan-Jun 2010 (AR$ / MWh) | 59,1 | 64,9 | 62,0 | 11,2 | 20,6 | 40,7 | ||||||
Average Gross Margin Jan-Jun 2009 (AR$ / MWh) | 51,2 | 62,3 | 80,4 | 17,3 | 17,4 | 39,8 | ||||||
Net Generation 2Q 2010 (GWh) | 175 | 111 | 302 | 112 | 826 | 1.526 | ||||||
Maket Share | 0,6% | 0,4% | 1,1% | 0,4% | 3,0% | 5,6% | ||||||
Sales 2Q 2010 (GWh) | 244 | 189 | 447 | 185 | 1.029 | 2.094 | ||||||
Net Generation 2Q 2009 (GWh) | 162 | 105 | 415 | 229 | 862 | 1.774 | ||||||
Variation Net Generation 2Q10 - 2Q09 | 7,7% | 6,1% | -27,3% | -51,4% | -4,1% | -14,0% | ||||||
Sales 2Q 2009 (GWh) | 233 | 186 | 475 | 236 | 1.048 | 2.179 | ||||||
Average Price 2Q 2010 (AR$ / MWh) | 171,6 | 207,0 | 245,1 | 149,9 | 422,1 | 311,7 | ||||||
Average Gross Margin 2Q 2010 (AR$ / MWh) | 60,2 | 61,2 | 79,3 | -2,8 | 24,8 | 41,4 | ||||||
Average Gross Margin 2Q 2009 (AR$ / MWh) | 35,7 | 41,1 | 39,9 | 82,9 | 19,6 | 34,4 | ||||||
Source: Pampa Energía S.A. and C.A.M.M.E.S.A. |
The decrease in generation in the second quarter of 2010 is explained by a reduction of 51.4%, 27.3%, and 4.1% in generation at Central Térmica Loma de la Lata, Central Térmica Güemes, and Central Piedra Buena, respectively, mainly due to a lower utilization required by the system and lower availability of natural gas. Also, an increase in maintenance work was performed at Central Térmica Guemes while work was also undertaken at Central Térmica Loma de la Lata to adapt gas turbines in order to connect them to perform as a closed cycle.
3302 Ortiz de Ocampo Street, | Tel +54-11-4809-9500 | |||
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C1425DSR Buenos Aires | www.pampaenergia.com/ir | |||
Argentina |
6. Expansion Projects
Pampa is currently expanding its installed capacity to be sold both under the Energy Plus Program, whereby generators are able to freely negotiate contracts and prices directly with large consumers and to CAMMESA through Resolution SE N° 220/2007 agreements:
•Loma de la Lata Project.Pampa Energía is expanding Loma de la Lata s current electricity generation capacity by 178 MW by means of converting the plant into a combined cycle systemgenerator. The project will increase Loma de la Lata s capacity by approximately 50% with no additional gas consumption, resulting in increased efficiency for the whole plant. In that sense, Loma de la Lata s current 369 MW open cycle operates at an efficiency of approximately 32%. We currently expect that, upon completion of the project, Loma de la Lata s combined cycle will operate at an efficiency of approximately 50% for the resulting total capacity of 547 MW.
The project will require an estimated investment of US$219 million and will be sold both under the Energy Plus Program and to CAMMESA by means of the agreement signed with CAMMESA under Resolution SE N° 220/2007.
•Ingentis Project.The indirectly controlled company, Ingentis S.A., decided to place a turbine for sale and decided to cancel the contract for the acquisition of an additional turbine and certain associated equipment. The company considers this to be the best available alternative given changes in technical and financial conditions that affected the originally planned project (please refer to Relevant Events, 2.2).
•Gas-Fired Engines.This project consists of two gas-fired motor generators with a combined installed capacity of approximately 16 MW and with an efficiency of 43%. Currently, the project is under review.
The following table summarizes the current status of Pampa s expansion projects:
New | Total | Invested as | Fuel | Estimated | ||||||||
Capacity | Investment | of Jun 10 | Starting | |||||||||
Project | Location | (MW) | (US$ MM) | (US$ MM) | Operating Date | |||||||
CTG | Salta | 100 | 69 | 69 | Natural Gas(1) | Completed | ||||||
Combined Cycle, | ||||||||||||
Loma de la Lata | Neuquén | 178 | 219 | 219(2) | no additional gas | 4Q 2010 | ||||||
required | ||||||||||||
Total | 278 | 288 | 288 | |||||||||
(1) Provision supported by natural gas royalty assignment agreements. | ||||||||||||
(2) Includes AR$68.4 million corresponding to investments guaranteeing letters of credit of the project (included in the Consolidated Balance Sheet as Non Current Investments). |
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7. Comparison of Information by segment
Pampa focuses its business primarily on the electricity sector, participating in the generation, transmission and distribution sectors through the legal entities in which the Company holds an equity interest. Through its subsidiaries, and based on the nature, clients and risks involved, the following business segments have been identified:
•Electricity Generation,comprised by the direct and the indirect participation in Central Térmica Loma de la Lata, Hidroeléctrica Los Nihuiles, Hidroeléctrica Diamante, Central Térmica Güemes, Central Piedra Buena, Powerco, Ingentis, Energía Distribuida, Pampa Generación and investments in shares of other companies related to the electricity generation business.
•Electricity Transmission,comprised by the indirect participation in Transener and its subsidiaries.
•Electricity Distribution,comprised by the indirect participation in Edenor and its controlling company Electricidad Argentina S.A. ( EASA ).
•Holding,comprised by the Company s own business, such us consulting, financial investments, and investments in real estate and other companies not related to the electricity sector.
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7.1 | Consolidated Results for the six-month period ended on June 30, 2010(AR$)
Consolidated Results | ||||||||||||
(as of June 30th, 2010) | Generation | Transmission | Distribution | Holding | Deletions | Consolidated | ||||||
Sales | 1.048.132.122 | 133.822.224 | 1.090.918.000 | 164.052 | - | 2.273.036.398 | ||||||
Intra-segment sales | 3.682.221 | 653.708 | - | 33.203 | (3.670.615) | 698.517 | ||||||
Total Sales | 1.051.814.343 | 134.475.932 | 1.090.918.000 | 197.255 | (3.670.615) | 2.273.734.915 | ||||||
Cost of sales | (879.988.479) | (104.606.718) | (837.177.579) | (150.978) | 653.708 | (1.821.270.046) | ||||||
Gross Income | 171.825.864 | 29.869.214 | 253.740.421 | 46.277 | (3.016.907) | 452.464.869 | ||||||
Administrative expenses | (46.495.301) | (20.211.634) | (81.647.665) | (15.147.456) | 2.996.111 | (160.505.945) | ||||||
Selling expenses | (11.184.997) | - | (90.481.000) | (71.568) | - | (101.737.565) | ||||||
Goodwill amortization | (7.615.818) | 428.146 | (2.766.977) | - | - | (9.954.649) | ||||||
Operating results | 106.529.748 | 10.085.726 | 78.844.779 | (15.172.747) | (20.796) | 180.266.710 | ||||||
Financial and holding results: | ||||||||||||
Generated by assets | 28.435.994 | 2.888.400 | 5.935.353 | (84.440.240) | (15.856.627) | (63.037.120) | ||||||
Generated by liabilities | (48.008.437) | (27.599.038) | (99.405.054) | 28.337.881 | 15.877.423 | (130.797.225) | ||||||
Other income and expenses, net | 986.338 | 1.641.769 | (8.215.160) | 5.819.743 | - | 232.690 | ||||||
(Loss) Gain before income tax and minority | ||||||||||||
interest | 87.943.643 | (12.983.143) | (22.840.082) | (65.455.363) | - | (13.334.945) | ||||||
Income tax | (34.306.204) | 764.144 | (5.673.822) | (14.281.221) | - | (53.497.103) | ||||||
Minority interest | (22.876.410) | 7.103.242 | 641.000 | - | - | (15.132.168) | ||||||
Net income (Loss) for the year | 30.761.029 | (5.115.757) | (27.872.904) | (79.736.584) | - | (81.964.216) | ||||||
EBITDA1 | 145.961.744 | 40.630.456 | 180.532.820 | (10.431.323) | (20.796) | 356.672.901 | ||||||
Consolidated Assets & Liabilities | ||||||||||||
(as of June 30th, 2010) | Generation | Transmission | Distribution | Holding | Deletions | Consolidated | ||||||
Total assets | 4.011.622.249 | 992.401.432 | 5.429.812.319 | 173.238.645 | (707.446.532) | 9.899.628.113 | ||||||
Total liabilities | 2.150.074.317 | 456.478.403 | 2.725.309.525 | 318.526.846 | (707.446.532) | 4.942.942.559 |
1Consolidated EBITDA represents the consolidated earnings before financial results, net, income taxes, depreciation, amortization, reserve directors options, other income and expenses, net, and minority interest.
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7.2 | Consolidated Results for the six-month period ended on June 30, 2009(AR$)
Consolidated Results | ||||||||||||
(as of June 30th, 2009) | Generation | Transmission | Distribution | Holding | Deletions | Consolidated | ||||||
Sales | 844.583.561 | 151.435.939 | 1.060.189.000 | 5.306.132 | - | 2.061.514.632 | ||||||
Intra-segment sales | 4.200.000 | 144.994 | - | 3.651.802 | (7.316.378) | 680.418 | ||||||
Total Sales | 848.783.561 | 151.580.933 | 1.060.189.000 | 8.957.934 | (7.316.378) | 2.062.195.050 | ||||||
Cost of sales | (657.370.944) | (115.969.814) | (793.028.520) | (4.528.739) | 680.419 | (1.570.217.598) | ||||||
Gross Income | 191.412.617 | 35.611.119 | 267.160.480 | 4.429.195 | (6.635.959) | 491.977.452 | ||||||
Administrative expenses | (34.322.832) | (16.923.923) | (65.060.000) | (27.073.450) | 6.635.959 | (136.744.246) | ||||||
Selling expenses | (7.803.555) | - | (55.698.000) | (631.017) | - | (64.132.572) | ||||||
Goodwill amortization | (7.478.502) | 400.278 | (2.765.605) | (137.316) | - | (9.981.145) | ||||||
Operating results | 141.807.728 | 19.087.474 | 143.636.875 | (23.412.588) | - | 281.119.489 | ||||||
Financial and holding results: | ||||||||||||
Generated by assets | 70.076.211 | 7.920.228 | 27.825.000 | 50.806.946 | (11.001.549) | 145.626.836 | ||||||
Generated by liabilities | (89.871.118) | 2.532.668 | (102.879.000) | 105.998.890 | 11.001.549 | (73.217.011) | ||||||
Other income and expenses, net | 333.290 | 1.701.377 | 13.209.000 | (127.567) | - | 15.116.100 | ||||||
(Loss) Gain before income tax and minority | ||||||||||||
interest | 122.346.111 | 31.241.747 | 81.791.875 | 133.265.681 | - | 368.645.414 | ||||||
Income tax | (46.424.018) | (3.019.749) | (48.089.787) | (701.838) | - | (98.235.392) | ||||||
Minority interest | (24.178.392) | (12.763.502) | (37.298.000) | - | - | (74.239.894) | ||||||
Net income (Loss) for the year | 51.743.701 | 15.458.496 | (3.595.912) | 132.563.843 | - | 196.170.128 | ||||||
EBITDA1 | 180.630.742 | 49.245.688 | 243.085.070 | (16.937.385) | - | 456.024.115 | ||||||
Consolidated Assets & Liabilities | ||||||||||||
(as of December 31st, 2009) | Generation | Transmission | Distribution | Holding | Deletions | Consolidated | ||||||
Total assets | 3.282.258.220 | 990.542.752 | 5.232.764.443 | 877.591.880 | (820.623.369) | 9.562.533.926 | ||||||
Total liabilities | 1.592.783.820 | 520.352.778 | 2.863.963.479 | 340.957.254 | (820.623.369) | 4.497.433.962 |
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C1425DSR Buenos Aires | www.pampaenergia.com/ir | |||
Argentina |
7.3 | Consolidated Results 2Q 2010(AR$)
Consolidated Results | ||||||||||||
(2Q 2010) | Generation | Transmission | Distribution | Holding | Deletions | Consolidated | ||||||
Sales | 651.990.770 | 63.625.699 | 517.421.000 | 164.052 | - | 1.233.201.521 | ||||||
Intra-segment sales | 1.847.079 | 573.478 | - | - | (2.086.926) | 333.631 | ||||||
Total Sales | 653.837.849 | 64.199.177 | 517.421.000 | 164.052 | (2.086.926) | 1.233.535.152 | ||||||
Cost of sales | (565.287.805) | (49.752.578) | (405.557.173) | (133.811) | 573.478 | (1.020.157.889) | ||||||
Gross Income | 88.550.044 | 14.446.599 | 111.863.827 | 30.241 | (1.513.448) | 213.377.263 | ||||||
Administrative expenses | (23.365.730) | (10.519.100) | (41.848.569) | (7.707.116) | 1.501.040 | (81.939.475) | ||||||
Selling expenses | (7.090.706) | - | (43.944.000) | (33.481) | - | (51.068.187) | ||||||
Goodwill amortization | (3.808.301) | 190.849 | (1.382.988) | - | - | (5.000.440) | ||||||
Operating results | 54.285.307 | 4.118.348 | 24.688.270 | (7.710.356) | (12.408) | 75.369.161 | ||||||
Financial and holding results: | ||||||||||||
Generated by assets | 8.546.689 | 2.276.973 | 1.226.211 | (77.657.616) | (7.596.438) | (73.204.181) | ||||||
Generated by liabilities | (14.856.024) | (13.486.955) | (40.944.037) | 8.302.108 | 7.608.846 | (53.376.062) | ||||||
Other income and expenses, net | 1.025.884 | 1.181.381 | (4.808.834) | (2.727.701) | - | (5.329.270) | ||||||
(Loss) Gain before income tax and minority | ||||||||||||
interest | 49.001.856 | (5.910.253) | (19.838.390) | (79.793.565) | - | (56.540.352) | ||||||
Income tax | (18.754.766) | 267.995 | 1.957.878 | (10.318.485) | - | (26.847.378) | ||||||
M inority interest | (10.225.667) | 3.368.029 | 3.049.000 | - | - | (3.808.638) | ||||||
Net income (Loss) for the year | 20.021.423 | (2.274.229) | (14.831.512) | (90.112.050) | - | (87.196.368) | ||||||
EBITDA1 | 75.967.565 | 19.402.983 | 75.623.290 | (5.355.165) | (12.408) | 165.626.265 | ||||||
Consolidated Assets & Liabilities | ||||||||||||
(2Q 2010) | Generation | Transmission | Distribution | Holding | Deletions | Consolidated | ||||||
Total assets | 4.011.622.249 | 992.401.432 | 5.429.812.319 | 173.238.645 | (707.446.532) | 9.899.628.113 | ||||||
Total liabilities | 2.150.074.317 | 456.478.403 | 2.725.309.525 | 318.526.846 | (707.446.532) | 4.942.942.559 |
3302 Ortiz de Ocampo Street, | Tel +54-11-4809-9500 | |||
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C1425DSR Buenos Aires | www.pampaenergia.com/ir | |||
Argentina |
7.4 | Consolidated Results 2Q 2009(AR$)
Consolidated Results | ||||||||||||
(2Q 2009) | Generation | Transmission | Distribution | Holding | Deletions | Consolidated | ||||||
Sales | 439.219.441 | 73.905.849 | 508.265.000 | 1.972.784 | - | 1.023.363.074 | ||||||
Intra-segment sales | 1.175.000 | 144.994 | - | 1.734.533 | (2.773.299) | 281.228 | ||||||
Total Sales | 440.394.441 | 74.050.843 | 508.265.000 | 3.707.317 | (2.773.299) | 1.023.644.302 | ||||||
Cost of sales | (362.541.691) | (55.470.670) | (394.987.006) | (1.507.205) | 333.694 | (814.172.878) | ||||||
Gross Income | 77.852.750 | 18.580.173 | 113.277.994 | 2.200.112 | (2.439.605) | 209.471.424 | ||||||
Administrative expenses | (21.255.841) | (8.558.290) | (31.926.000) | (11.302.258) | 2.439.605 | (70.602.784) | ||||||
Selling expenses | (5.755.309) | - | (12.345.000) | (310.123) | - | (18.410.432) | ||||||
Goodwill amortization | (3.739.643) | 200.139 | (1.381.616) | (68.658) | - | (4.989.778) | ||||||
Operating results | 47.101.957 | 10.222.022 | 67.625.378 | (9.480.927) | - | 115.468.430 | ||||||
Financial and holding results: | ||||||||||||
Generated by assets | 28.121.687 | 5.909.779 | 18.853.000 | 31.505.973 | (307.097) | 84.083.342 | ||||||
Generated by liabilities | (23.465.119) | (6.095.470) | (46.929.420) | 74.796.507 | 307.097 | (1.386.405) | ||||||
Other income and expenses, net | (1.489.113) | 1.651.705 | 18.593.000 | (168.213) | - | 18.587.379 | ||||||
(Loss) Gain before income tax and minority | ||||||||||||
interest | 50.269.412 | 11.688.036 | 58.141.958 | 96.653.340 | - | 216.752.746 | ||||||
Income tax | (16.228.227) | (3.887.030) | (25.079.727) | 937.378 | - | (44.257.606) | ||||||
Minority interest | (8.105.675) | (3.607.757) | (22.709.000) | - | - | (34.422.432) | ||||||
Net income (Loss) for the year | 25.935.510 | 4.193.249 | 10.353.231 | 97.590.718 | - | 138.072.708 | ||||||
EBITDA1 | 65.983.243 | 25.409.346 | 117.467.790 | (6.243.337) | - | 202.617.042 | ||||||
Consolidated Assets & Liabilities | ||||||||||||
(as of December 31, 2009) | Generation | Transmission | Distribution | Holding | Deletions | Consolidated | ||||||
Total assets | 3.282.258.220 | 990.542.752 | 5.232.764.443 | 877.591.880 | (820.623.369) | 9.562.533.926 | ||||||
Total liabilities | 1.592.783.820 | 520.352.778 | 2.863.963.479 | 340.957.254 | (820.623.369) | 4.497.433.962 |
3302 Ortiz de Ocampo Street, | Tel +54-11-4809-9500 | |||
Building #4 | investor@pampaenergia.com | 23 | ||
C1425DSR Buenos Aires | www.pampaenergia.com/ir | |||
Argentina |
Information about the Conference Call
There will be a conference call to discuss Pampa s second quarter 2010 results on Friday, August 13th, 2010 at 10:00 a.m. New York Time / 11:00 a.m. Buenos Aires Time. Mr. Ricardo Torres, Chief Executive Officer of the Company, will be presenting for Pampa Energía S.A. For those interested in participating, please dial 0-800-444-0930 in Argentina, (1 800) 860-2442 in the United States or (1 412) 858-4600 from any other country. Participants of the conference call should use the identification password Pampa (72672) and dial in five minutes before the scheduled time. There will also be a live audio webcast of the conference atwww.pampaenergia.com/irpage in the investor relation sector.
You may find additional information on the Company at:
www.pampaenergia.com/ir
www.cnv.org.ar
3302 Ortiz de Ocampo Street, | Tel +54-11-4809-9500 | |||
Building #4 | investor@pampaenergia.com | 24 | ||
C1425DSR Buenos Aires | www.pampaenergia.com/ir | |||
Argentina |
Pampa Energía S.A. | ||
By: | /S/ Roberto Maestretti | |
Name: Roberto Maestretti Title: Chief Financial Officer |
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.