Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2019shares | |
Document And Entity Information | |
Entity Registrant Name | Pampa Energy Inc. |
Entity Central Index Key | 0001469395 |
Document Type | 20-F |
Document Period End Date | Dec. 31, 2019 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Is Entity a Well-known Seasoned Issuer? | Yes |
Is Entity a Voluntary Filer? | No |
Is Entity's Reporting Status Current? | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Interactive Data Current | Yes |
Entity Incorporation, State or Country Code | C1 |
Entity Common Stock, Shares Outstanding | 1,677,112,043 |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2019 |
CONSOLIDATED STATEMENT OF COMPR
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of comprehensive income [abstract] | |||
Revenue | $ 2,836 | $ 2,920 | $ 2,175 |
Cost of sales | (2,032) | (1,967) | (1,574) |
Gross profit | 804 | 953 | 601 |
Selling expenses | (148) | (171) | (127) |
Administrative expenses | (174) | (206) | (198) |
Exploration expenses | (9) | (1) | (2) |
Other operating income | 40 | 181 | 149 |
Other operating expenses | (86) | (200) | (103) |
Impairment of property, plant and equipment | (62) | (32) | 0 |
Share of profit from associates and joint ventures | 101 | 118 | 48 |
Income from the sale of associates | 0 | 28 | 0 |
Agreement on the regularization of obligations | 285 | 0 | 0 |
Operating income | 751 | 670 | 368 |
Gain on monetary position, net | 187 | 629 | 304 |
Finance income | 96 | 99 | 62 |
Finance costs | (299) | (316) | (232) |
Other financial results | 113 | (858) | (100) |
Financial results, net | 97 | (446) | 34 |
Profit before income tax | 848 | 224 | 402 |
Income tax | (48) | (17) | 26 |
Profit of the year from continuing operations | 800 | 207 | 428 |
Profit (loss) of the year from discontinued operations | 0 | 80 | (50) |
Profit of the year | 800 | 287 | 378 |
Other comprehensive income (loss) items that will not be reclassified to profit or loss | |||
Results related to defined benefit plans | 2 | (4) | 0 |
Income tax | 0 | 1 | 0 |
Share of loss from joint ventures | 0 | (1) | 0 |
Exchange differences on translation | (15) | 0 | 0 |
Other comprehensive income (loss) Items that may be reclassified to profit or loss | |||
Exchange differences on translation | (22) | 1 | 3 |
Other comprehensive income (loss) of the year from continuing operations | (35) | (3) | 3 |
Other comprehensive income of the year from discontinued operations | 0 | 8 | (14) |
Other comprehensive income (loss) of the year | (35) | 5 | (11) |
Total comprehensive income of the year | 765 | 292 | 367 |
Total income of the year attributable to: | |||
Owners of the company | 692 | 224 | 286 |
Non - controlling interest | 108 | 63 | 92 |
Total income (loss) of the year | 800 | 287 | 378 |
Total income (loss) of the year attributable to owners of the company: | |||
Continuing operations | 692 | 146 | 341 |
Discontinued operations | 0 | 78 | (55) |
Total income of the year attributable to owners of the company | 692 | 224 | 286 |
Total comprehensive income of the year attributable to: | |||
Owners of the company | 672 | 225 | 281 |
Non - controlling interest | 93 | 67 | 86 |
Total comprehensive income of the year | 765 | 292 | 367 |
Total comprehensive income (loss) of the year attributable to owners of the company: | |||
Continuing operations | 672 | 141 | 343 |
Discontinued operations | 0 | 84 | (62) |
Total comprehensive income (loss) of the year attributable to owners of the company | $ 672 | $ 225 | $ 281 |
Earnings per share attributable to the equity holders of the company during the year | |||
Basic and diluted earnings per share from continuing operations | $ 14.42 | $ 2.81 | $ 6.69 |
Basic and diluted earnings (loss) per share from discontinued operations | .00 | 1.50 | (1.07) |
Total basic and diluted earnings per share | $ 14.42 | $ 4.31 | $ 5.61 |
CONSOLIDATED STATEMENT OF FINAN
CONSOLIDATED STATEMENT OF FINANCIAL POSITION - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
NON CURRENT ASSETS | ||
Property, plant and equipment | $ 3,507 | $ 3,316 |
Intangible assets | 151 | 161 |
Right-of-use assets | 16 | 0 |
Deferred tax assets | 28 | 2 |
Investments in joint ventures and associates | 511 | 407 |
Financial assets at amortized cost | 18 | 0 |
Financial assets at fair value through profit and loss | 11 | 11 |
Other assets | 1 | 1 |
Trade and other receivables | 79 | 253 |
Total non current assets | 4,322 | 4,151 |
CURRENT ASSETS | ||
Inventories | 153 | 137 |
Financial assets at amortized cost | 54 | 35 |
Financial assets at fair value through profit and loss | 365 | 405 |
Derivative financial instruments | 4 | 0 |
Trade and other receivables | 561 | 703 |
Cash and cash equivalents | 225 | 241 |
Total current assets | 1,362 | 1,521 |
Total assets | 5,684 | 5,672 |
SHAREHOLDERS' EQUITY | ||
Share capital | 46 | 50 |
Share capital adjustment | 260 | 260 |
Share premium | 510 | 491 |
Treasury shares | 1 | 0 |
Treasury shares adjustment | 1 | 4 |
Treasury shares cost | (44) | (39) |
Legal reserve | 42 | 24 |
Voluntary reserve | 422 | 195 |
Other reserves | (18) | (13) |
Retained earnings | 726 | 403 |
Other comprehensive income | (29) | (9) |
Equity attributable to owners of the company | 1,917 | 1,366 |
Non-controlling interest | 492 | 429 |
Total equity | 2,409 | 1,795 |
NON CURRENT LIABILITIES | ||
Investments in joint ventures and associates | 4 | 4 |
Provisions | 145 | 146 |
Income tax and minimum notional income tax provision | 10 | 27 |
Deferred revenue | 5 | 7 |
Taxes payables | 4 | 14 |
Deferred tax liabilities | 368 | 407 |
Defined benefit plans | 27 | 31 |
Salaries and social security payable | 4 | 4 |
Borrowings | 1,764 | 1,835 |
Trade and other payables | 90 | 220 |
Total non current liabilities | 2,421 | 2,695 |
CURRENT LIABILITIES | ||
Provisions | 20 | 23 |
Income tax and minimum notional income tax provision | 53 | 29 |
Taxes payables | 72 | 54 |
Defined benefit plans | 4 | 4 |
Salaries and social security payable | 65 | 72 |
Derivative financial instruments | 3 | 1 |
Borrowings | 183 | 342 |
Trade and other payables | 454 | 657 |
Total current liabilities | 854 | 1,182 |
Total liabilities | 3,275 | 3,877 |
Total liabilities and equity | $ 5,684 | $ 5,672 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY - USD ($) $ in Millions | Share capital | Share capital adjustment | Share premium | Treasury shares | Treasury shares adjustment | Treasury shares cost | Legal reserve | Voluntary reserve | Other reserves | Other comprehensive income / (loss) | Retained earnings (Accumulated losses) | Subtotal | Non-controlling interest | Total |
Beginning balance at Dec. 31, 2016 | $ 51 | $ 287 | $ 421 | $ 0 | $ 0 | $ 0 | $ 15 | $ 250 | $ 9 | $ (4) | $ 114 | $ 1,143 | $ 464 | $ 1,607 |
Constitution of legal reserve - Shareholders' meeting | 4 | (4) | 0 | 0 | 0 | |||||||||
Constitution of voluntary reserve - Shareholders' meeting | 83 | (83) | 0 | 0 | 0 | |||||||||
Stock compensation plans | 1 | 1 | 2 | 0 | 2 | |||||||||
Acquisition of own shares | (3) | (3) | 0 | (3) | ||||||||||
Merger with subsidiaries | 4 | 2 | 69 | 75 | (75) | 0 | ||||||||
Dividends provided for pay | 0 | (4) | (4) | |||||||||||
Profit for the year | 286 | 286 | 92 | 378 | ||||||||||
Other comprehensive income (loss) for the year | (6) | (6) | (5) | (11) | ||||||||||
Ending balance at Dec. 31, 2017 | 55 | 289 | 491 | 0 | 0 | (3) | 19 | 333 | 10 | (10) | 313 | 1,497 | 472 | 1,969 |
Change in accounting policies | (1) | (1) | (1) | (2) | ||||||||||
Beginning balance | 55 | 289 | 491 | 0 | 0 | (3) | 19 | 333 | 10 | (10) | 312 | 1,496 | 471 | 1,967 |
Constitution of legal reserve - Shareholders' meeting | 5 | (5) | 0 | 0 | 0 | |||||||||
Constitution of voluntary reserve - Shareholders' meeting | 128 | (128) | 0 | 0 | 0 | |||||||||
Stock compensation plans | 0 | 0 | 0 | |||||||||||
Acquisition of own shares | (5) | (29) | 5 | 29 | (332) | (23) | (355) | (14) | (369) | |||||
Dividends provided for pay | 0 | (2) | (2) | |||||||||||
Capital reduction | (5) | (25) | 296 | (266) | 0 | 0 | 0 | |||||||
Sale of interest in subsidiaries | 0 | (93) | (93) | |||||||||||
Profit for the year | 224 | 224 | 63 | 287 | ||||||||||
Other comprehensive income (loss) for the year | 1 | 1 | 4 | 5 | ||||||||||
Ending balance at Dec. 31, 2018 | 50 | 260 | 491 | 0 | 4 | (39) | 24 | 195 | (13) | (9) | 403 | 1,366 | 429 | 1,795 |
Constitution of legal and voluntary reserve - Shareholders' meeting | 18 | 351 | (369) | 0 | 0 | 0 | ||||||||
Stock compensation plans | 1 | 1 | 0 | 1 | ||||||||||
Acquisition of own shares | (4) | 19 | 4 | (135) | (6) | (122) | (29) | (151) | ||||||
Dividends provided for pay | 0 | (1) | (1) | |||||||||||
Capital reduction | (3) | (3) | 130 | (124) | 0 | 0 | 0 | |||||||
Profit for the year | 692 | 692 | 108 | 800 | ||||||||||
Other comprehensive income (loss) for the year | (20) | (20) | (15) | (35) | ||||||||||
Ending balance at Dec. 31, 2019 | $ 46 | $ 260 | $ 510 | $ 1 | $ 1 | $ (44) | $ 42 | $ 422 | $ (18) | $ (29) | $ 726 | $ 1,917 | $ 492 | $ 2,409 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | |||
Profit of the year from continuing operations | $ 800 | $ 207 | $ 428 |
Profit (loss) of the year from discontinued operations | 0 | 80 | (50) |
Adjustments to reconcile net profit (loss) to cash flows generated by operating activities: | (30) | 622 | 151 |
Changes in operating assets and liabilities | 32 | (253) | (177) |
Net cash used in operating activities from discontinued operations | 0 | (46) | 87 |
Net cash generated by operating activities | 802 | 610 | 439 |
Cash flows from investing activities: | |||
Payment for property, plant and equipment | (582) | (674) | (485) |
Collection (payment) for financial assets | 217 | (31) | (109) |
Payments for capital integration in associates and joint ventures | (108) | 0 | 0 |
Proceeds from sale of intangible assets | 0 | 2 | 0 |
Collections for sales of shares in companies and property, plant and equipment | 42 | 457 | 15 |
Dividends received | 87 | 19 | 1 |
Colletion (proceeds) from loans | 7 | (4) | 1 |
Recovery of investment funds, net | (32) | 250 | (219) |
Net cash used in investing activities from discontinued operations | 0 | 0 | (50) |
Net cash (used in) generated by investing activities | (369) | 19 | (846) |
Cash flows from financing activities: | |||
Proceeds from borrowings | 556 | 245 | 1,250 |
Payment of borrowings | (550) | (240) | (733) |
Payment of borrowings interests | (148) | (133) | (108) |
Payment for acquisition of own shares | (151) | (369) | (3) |
Payments of dividends from subsidiaries to third parties | (1) | (2) | (2) |
Repurchase and redemption of corporate bonds | (91) | (13) | (1) |
Payments of leases | (5) | 0 | 0 |
Net cash generated by (used in) financing activities from discontinued operations | 0 | 42 | (31) |
Net cash (used in) generated by financing activities | (390) | (470) | 372 |
Increase (decrease) in cash and cash equivalents | 43 | 159 | (35) |
Cash and cash equivalents at the beginning of the year | 241 | 31 | 69 |
Cash and cash equivalents at the begining of the year reclasified to assets classified as held for sale | 0 | 6 | (6) |
Exchange difference generated by cash and cash equivalents | (59) | 53 | 14 |
Loss on net monetary position generated by cash and cash equivalents | 0 | (8) | (11) |
Increase (decrease) in cash and cash equivalents | 43 | 159 | (35) |
Cash and cash equivalents at the end of the year | $ 225 | $ 241 | $ 31 |
1. GENERAL INFORMATION AND GROU
1. GENERAL INFORMATION AND GROUP STRUCTURE | 12 Months Ended |
Dec. 31, 2019 | |
General Information And Group Structure | |
GENERAL INFORMATION AND GROUP STRUCTURE | 1.1 General information of the Company The Company is a fully integrated power company in Argentina, which directly and through its subsidiaries, participates in the electric energy and gas value chains. In the generation segment, the Company, directly and through its subsidiaries, has a 4,751 MW installed capacity, which represents approximately 12% of Argentina’s installed capacity, and is the second largest independent generator in the country. Additionally, the Company is currently undergoing a process to expand its capacity by 471 MW. In the distribution segment, the Company has a controlling interest in Edenor, the largest electricity distributor in Argentina, which has more than 3.1 million customers and a concession area covering the Northern part of the City of Buenos Aires and Northwestern Greater Buenos Aires. In the oil and gas segment, the Company develops an important activity in gas and oil exploration and production, with operations in 12 production areas and 6 exploratory areas reaching a production level of 7.3 million m3/day of natural gas and 5,000 barrels/day of oil equivalent for oil in Argentina, as of December 31, 2019. Its main natural gas production blocks are located in the Provinces of Neuquén and Río Negro. The results and cash flows for 2018 and 2017 associated with the divestment mentioned in Note 5.2.1 are disclosed under discontinued operations. In the petrochemicals segment, operations are located in the Republic of Argentina, where the Company operates three high-complexity plants producing styrene, synthetic rubber and polystyrene, with a domestic market share ranging between 89% and 100%. Finally, through the holding and others segment, the Company participates in the transmission and gas transportation businesses. In the transmission business, the Company jointly controls Citelec, which has a controlling interest in Transener, a company engaged in the operation and maintenance of a 20,981 km high-voltage electricity transmission network in Argentina with an 85% share in the Argentine electricity transmission market. In the gas transportation business, the Company jointly controls CIESA, which has a controlling interest in TGS, a company holding a concession for the transportation of natural gas with 9,231 km of gas pipelines in the center, west and south of Argentina, and which is also engaged in the processing and sale of natural gas liquids through the Cerri Complex, located in Bahía Blanca, in the Province of Buenos Aires. Additionally, the segment includes advisory services provided to related companies. The results and cash flows for 2018 and 2017 associated with the divestment of the main assets of the refining and distribution segment mentioned in Note 5.2.2 are disclosed under discontinued operations in the Holding and others segment. 1.2 Economic context in which the Company operates The Company operates in a complex economic context which main variables have recently suffered significant volatility both in the domestic and international spheres. At the domestic level, a 2.5% year-on-year drop in the GDP was recorded in the first semester of 2019, cumulative inflation in 2019 reached 53.8% (IPC), and the significant devaluation of the peso as from August generated an unexpected draining of dollar-denominated deposits from the financial system (and, consequently, a drop in BCRA’s reserves) and an increase in the benchmark interest rate, which came to exceed 80% over the year (and being at about 60% as of the closing hereof). On December 10, 2019 a new Federal Government took office, which declared a public emergency in economic, financial, fiscal, administrative, pension, tariff, energy, health and social matters until December 31, 2020 and implemented a series of measures, which are summarized below: - The delegation to the PEN of the power to maintain electricity and gas tariffs which are under federal jurisdiction, and to begin a process for the renegotiation or an extraordinary review of the current RTI, for a term of 180 days, with the purpose of reducing the actual tariff burden on households, businesses and industries for 2020; - The delegation to the PEN of the power to conduct an administrative intervention of the ENRE and the ENARGAS for a term of one year; - The suspension of the application of section 124, second paragraph, of Law No. 27,467, which divested the ENRE, effective as from Edenor and Edesur’s transfer to the jurisdiction of the Province of Buenos Aires and the Autonomous City of Buenos Aires, of its powers and functions associated with the electricity distribution utility, which powers it will keep for a year; - The establishment of a regime for the regularization of tax, social security and customs obligations for micro, small and middle-sized companies; - The suspension of the unification of employer contribution rates; - The PEN’s capacity to provide for mandatory minimum salary increases in the private sector (with the temporary exemption from the payment of contributions to the Argentine social security system of the salary increases granted under this capacity or under collective bargaining agreements); - The suspension until fiscal years starting on or after January 1, 2021 of the decrease in the income tax rate, which will remain at 30%, and the keeping of the 7% withholdings on dividends during such period (see Note 2.6.1.2); - The setting of a new mechanism for allocating the tax inflation adjustment for the first and second fiscal years starting on or after January 1, 2019 (see Note 2.6.1.5); - An increase in export duties (with the exception of hydrocarbons and mining) and in personal assets tax rates; - The reinstatement of the value-added tax on basic food basket products and the suspension of the pension mobility; - The modification of the schedular taxation system and the restoration of income tax exemptions for certain securities and bonds; - The creation of the Tax for an Inclusive and Supportive Argentina (PAIS) for a term of five fiscal periods. - The extended life of BCRA’s regulations regarding the inflow and outflow of foreign exchange in the foreign exchange market. Additionally, the Federal Government is preparing a proposal for the renegotiation of the external debt with international creditors. The context of volatility and uncertainty continues as of the date of issuance of these Consolidated Financial Statements. The Company’s Management permanently monitors the evolution of the variables affecting its business to define its course of action and identify potential impacts on its assets and financial position. The Company’s Consolidated Financial Statements should be read in the light of these circumstances. |
2. REGULATORY FRAMEWORK
2. REGULATORY FRAMEWORK | 12 Months Ended |
Dec. 31, 2019 | |
Regulatory Framework | |
REGULATORY FRAMEWORK | 2.1 Generation 2.1.1 Generation units The Company’s revenues from the electric power generation activity come from: i) sales to the Spot market pursuant to the provisions applicable within the WEM administered by CAMMESA (SEE Resolution No. 19/17, replaced by SRRYME Resolution No. 1/19 as from March 2019); ii) sales contracts with large users within the MAT (Resolutions No. 1,281/06 and No. 281/17); and iii) supply agreements with CAMMESA (Resolutions No. 220/07, No. 21/16, No. 287/17 and Renovar Programs). Furthermore, energy not committed under sales contracts with large users within the MAT and with CAMMESA are remunerated at the Spot market. The Company’s generating units are detailed below: In operation: Generator Generating unit Tecnology Power Applicable regime (2) CTG GUEMTG01 TG 100 MW Energy Plus Res. No. 1281/06 (1) CTG GUEMTV11 TV ≤100 MW SE Resolutions No. 1/19 CTG GUEMTV12 TV ≤100 MW SE Resolutions No. 1/19 CTG GUEMTV13 TV >100 MW SE Resolutions No. 1/19 Piquirenda PIQIDI 01-10 MG 30 MW SE Resolution No. 220/07 (1) CPB BBLATV29 TV >100 MW SE Resolutions No. 1/19 CPB BBLATV30 TV >100 MW SE Resolutions No. 1/19 CT Ing. White BBLMD01-06 MG 100 MW SEE Resolution No. 21/16 (1) CTLL LDLATG01 TG >50 MW SE Resolutions No. 1/19 CTLL LDLATG02 TG >50 MW SE Resolutions No. 1/19 CTLL LDLATG03 TG >50 MW SE Resolutions No. 1/19 CTLL LDLATG04 TG 105 MW SEE Res. 220/07 (75%), SEE Res. 1/19 (25%) CTLL LDLATG05 TG 105 MW SEE Resolution No. 21/16 (1) CTLL LDLATV01 TV 180 MW SE Resolution No. 220/07 (1) CTGEBA GEBATG01/TG02/TV01 CC >150 MW SE Resolutions No. 1/19 CTGEBA GEBATG03 TG 188 MW Energy Plus Res. No. 1281/06 (1) CTGEBA GEBATG04 TG >100 MW SE Resolutions No. 1/19 (3) Ecoenergía CERITV01 TV Renewable = 50 Energy Plus Res. N° 1281/06 (1) CT Parque Pilar PILBD01-06 MG 100 MW SE Resolutions No. 1/19 (3) CTB EBARTG01 - TG02 TG HI – Small 50<P≤120 SE Resolution No. 220/07 (1) HIDISA AGUA DEL TORO HI HI – Small 50<P≤120 SE Resolutions No. 1/19 HIDISA EL TIGRE HI HI – Small 50<P≤120 SE Resolutions No. 1/19 HIDISA LOS REYUNOS HB HB – Media 120<P≤300 SE Resolutions No. 1/19 HINISA NIHUIL I - II - III HI HI – Chica 50<P≤120 SE Resolutions No. 1/19 HPPL PPLEHI HI HI – Media 120<P≤300 SE Resolutions No. 1/19 P.E. M. Cebreiro CORTEO Eólica 100 MW Renovar (1) PEPE II PAMEEO Eólica 53 MW SEE Resolution No. 281/17 PEPE III BAHIEO Eólica 53 MW SEE Resolution No. 281/17 (1) (2) (3) In construction: Generator Generating unit Tecnology Applicable regime CTLL MG 15 MW SE Resolutions No. 1/19 CTGEBA CC 176 MW SE Resolution No. 287/17 CTB CC 280 MW SE Resolution No. 220/07 2.1.2 Remuneration at the Spot market On February 2, 2017, the SEE issued Resolution No. 19/17, which superseded the remuneration scheme set forth by Resolution No. 22/16 and established guidelines for the remuneration to generation plants as from the commercial transaction corresponding to February 1, 2017. Later, on March 1, 2019, SRRYME Resolution No. 1/19 was published in the BO, which abrogated, effective as from March 1, 2019, the remuneration scheme established by SEE Resolution No. 19/17. Both resolutions provide for remunerative items based on technology and scale, establishing U$S-denominated prices payable in pesos by applying BCRA’s exchange rate effective on the last business day of the month of the applicable economic transaction, adjusted through credit or debit notes, as appropriate, to consider the BCRA’s exchange rate of the day before the expiration date, in accordance with CAMMESA’s procedures. 2.1.2.1 Remuneration for Available Power Capacity 2.1.2.1.1 Thermal Power Generators The SEE Resolution No. 19/17 provides for a minimum remuneration for power capacity based on technology and scale and allows generating, co-generating and self-generating agents owning conventional thermal power stations to offer Guaranteed Availability Commitments for the energy and power capacity generated by their units not committed under sales contracts with large users within the MAT and supply agreements with CAMMESA. Availability Commitments for each unit should be declared for a term of three years, together with information for the Summer Seasonal Programming, with the possibility to offer different availability values for the summer and winter six-month periods. The committed thermal generators’ remuneration for power capacity will be proportional to their compliance. The Minimum Remuneration applies to generators with no availability commitments, with prices ranging from U$S3,050 to U$S5,700/MW-month, depending on the technology and scale. The Base Remuneration applies to generators with availability commitments, with a price of U$S 6,000/MW-month during the May-October 2017 period, and U$S 7,000/MW-month as from November 2017. The Additional Remuneration is a remuneration for the additional available power capacity aiming to encourage availability commitments for the periods with a higher system demand. CAMMESA will define a monthly thermal generation goal for the set of qualified generators on a bi-monthly basis, and will call for additional power capacity availability offers with prices not exceeding the additional price. The additional price amounts to U$S 1,000/MW-month between May and October, 2017, and to U$S2,000/MW-month as from November 2017. The SRRYME Resolution No. 1/19 maintains in effect a remuneration made up of a minimum or base power capacity payment for generators with no availability commitments, and another for offered guaranteed power capacity, although with lower values than under the previous resolution: - The minimum remuneration for power capacity was reduced from U$S 5,700/MW-month to U$S 5,200/MW-month for small steam turbine units (≤ 100MW) and internal combustion engines. - The price of the remuneration for guaranteed power capacity decreased from U$S 7,000/MW-month to U$S 5,500 U$S/MW-month, only for the autumn and spring periods. Furthermore, the current remuneration scheme, applies a coefficient derived from the unit’s average utilization factor during the last twelve months to the power capacity remuneration: a minimum 70% utilization factor is required to collect 100% of the power capacity payment; if the utilization factor ranges between 30% and 70%, the power capacity payment will range between 70% and 100%; and if the usage factor is lower than 30%, 70% of the power capacity payment will be collected. Additionally, Availability Commitments should be declared for each unit on a quarterly basis. Finally, the current remuneration scheme, abrogates the additional remuneration scheme to encourage the guaranteed power capacity offered in the periods with a higher system demand. 2.1.2.1.2 Hydroelectric Generators In the case of hydroelectric power plants, a base remuneration and an additional remuneration for power capacity were established by the SEE Resolution No. 19/17. Power capacity availability is determined independently of the reservoir level, the contributions made, or the expenses incurred. Furthermore, in the case of pumping hydroelectric power plants, the following is considered to calculate availability: i) the operation as turbine at all hours within the period, and ii) the availability as pump at off-peak hours every day and on non-business days. The base remuneration is determined by the actual power capacity plus that under programmed and/or agreed maintenance, with prices ranging from U$S2,000 to U$S8,000/MW-month, depending on the scale and type of power plant. In case of hydroelectric power plants maintaining control structures on river courses and not having an associated power plant, a 1.20 factor will be applied to the plant at the headwaters. The additional remuneration applies to power plants of any scale for their actual availability and based on the applicable period, with prices ranging from U$S0 to U$S500/MW-month between May and October 2017, and U$S500 or U$S1,000/MW-month as from November 2017 for pumping or conventional hydroelectric power plants, respectively. As from November 2017, the allocation and collection of 50% of the additional remuneration will be conditional upon the generator taking out insurance, to CAMMESA’s satisfaction, to cover for major incidents on critical equipment, and the progressive updating of the plant’s control systems pursuant to an investment plan to be submitted based on criteria to be defined by the SEE. SRRYME Resolution No. 1/19 maintains power capacity prices set forth by SEE Resolution No. 19/17; nevertheless, the hours in which a hydroelectric generator is not available due to programmed and agreed maintenance will no longer be computed for the calculation of the power capacity remuneration. However, in order to mitigate such incidence, in May 2019, by means of SME Note No. 46631495/19, a 1.05 factor was applied to power capacity prices. 2.1.2.1.3 Wind power The remuneration under the SEE Resolution No. 19/17 is made up of a base price of U$S7.5/MWh and an additional price of U$S17.5/MWh, which are associated with the availability of the installed equipment with an operating permanence longer than 12 months as from the beginning of the summer seasonal programming. Later on, SRRYME Resolution No. 1/19 establishes a single remuneration value for generated energy (see next item). 2.1.2.2 Remuneration for Generated and Operated Energy The SEE Resolution No. 19/17 establishes a remuneration for Generated Energy with prices ranging between U$S5 and U$S10/MWh, depending on the technology, scale and type of fuel. Pursuant to SRRYME Resolution No. 1/19, these values are reduced to U$S 4/MWh and U$S 7/MWh, respectively. Under the SEE Resolution No. 19/17, the remuneration for Operated Energy applies to the integration of hourly power capacities for the period, and is valued at U$S2.0/MWh for any type of fuel. Under the scheme set forth by SRRYME Resolution No. 1/19, the above-mentioned price is reduced to U$S 1.4/MWh. In the case of hydroelectric plants, prices for Generated and Operated Energy under the SEE Resolution No. 19/17, are remunerated As regards energy generated from unconventional sources, SRRYME Resolution No. 1/19 establishes a single remuneration value of U$S 28/MWh, irrespective of the source used. Energy generated prior to the commissioning by the OED will be remunerated at 50% of the above-mentioned remuneration. 2.1.2.3 Additional Remuneration for Efficiency and for Low-Use Thermal Generators The “Efficiency” incentive established in the SEE Resolution No. 19/17 consists of the acknowledgment of an additional remuneration equivalent to the remuneration for the generated energy by the percentage difference between the actual consumption and the reference consumption determined for each unit and fuel type. This comparison will be made on a quarterly basis. In the case of higher consumptions, the general remuneration will not be affected. The mentioned Resolution also provides for an additional remuneration for low-use thermal generators having frequent startups based on the monthly generated energy for a price of U$S2.6/MWh multiplied by the usage/startup factor. Under the scheme set forth by SRRYME Resolution No. 1/19, the efficiency and low-use/frequent startups incentives are canceled. 2.1.2.4 Repayment of Overhauls Financing The SEE Resolution No. 19/17 provides that, as regards the repayment of outstanding loans applicable to thermal and hydroelectric generators, credits already accrued and/or committed to the cancellation of such maintenance works will be applied first. The balance will be repaid by discounting U$S1/MWh for the energy generated until the total cancellation of the financing. Later on, as regards the repayment of funds supplied to generators under the loan agreements for the execution of overhauls in their units, SRRYME Resolution No. 1/19 provides for: (i) the application of all receivables accrued in favor of generators for their settlement, and (ii) a discount scheme in the generator’s revenues equivalent to U$S 1/MWh for each generated MW or U$S 700/MW-month for the unit’s actual availability, whichever is higher. The overhauls financing owed by the Company were canceled under the Agreement for the Regularization and Settlement of Receivables with the WEM (see Note 2.1.7). 2.1.2.5 Suspension of contracts within the MAT The suspension of contracts within the MAT (excluding those resulting from a differential remuneration scheme) provided for by SE Resolution No. 95/13 was not modified by SRRYME Resolution No. 1/19, this suspension thus remained in effect during 2019. 2.1.3 Sales contracts with large users within the MAT 2.1.3.1 Energy Plus With the purpose of encouraging new generation works, in 2006 the SE approved Resolution No. 1,281/06 establishing a specific regime which would remunerate newly installed generation sold to a certain category of Large Users at higher prices. To such effect, it established certain restrictions on the sale of electricity and implemented the Energy Plus service, which consists of the offer of additional generation availability by the generating agents. These measures imply that: - Generating, co-generating and self-generating agents which, as of the date of issuance of SE Resolution No. 1,281/06, are neither WEM agents nor have facilities or an interconnection with the WEM, will qualify; - These plants should have fuel supply and transportation facilities; - The energy used by GU300 in excess of the Base Demand (energy consumption for 2005 year) qualifies for Energy Plus agreements within the MAT at a price negotiated between the parties; and - For new GU300 entering the system, their Base Demand will equal zero. Under this regime, the Company —through its power plants Güemes, EcoEnergía and Genelba— sells its energy and power capacity for a maximum amount of 280 MW. The values of Energía Plus contracts are mostly denominated in U.S. dollars. It is worth pointing out that Güemes has transferred, since May 2019, its contracts to Genelba, selling electricity in the spot market. If a generator cannot meet the power demand by an Energy Plus customer, it should purchase that power in the market at the operated marginal cost, or, alternatively, support the committed demand in case of unavailability through agreements with other Energía Plus generators. Currently, the Company has Power Availability agreements in force with other generators whereby, in case of unavailability, it may purchase or sell power to support the contracts. Furthermore, SE Note No. 567/07, as amended, provided that GU300 not purchasing their Surplus Demand within the MAT should pay the CMIDE, and that the difference between the actual cost and the CMIDE would be accumulated in an individual account on a monthly basis for each GU300 within CAMMESA's scope. Pursuant to SE Note No. 111/16, until May 2018, the CMIDE was $ 650/MWh for GUMA and GUME and $ 0/MWh for GUDI. As from June 2018, pursuant to SE Note No. 28663845/18, the CMIDE became the greater of $ 1,200/MWh or the temporary dispatch surcharge. Additionally, it was provided that, until further instructed, movements in the individual account of each GU300 would temporarily not be recorded. Due to the decrease in surplus demand as a consequence of the decrease in economic activity, there are GU300 that decide not to make Energy Plus contracts (with higher prices), and generators have to sell their energy at the spot market, thus reducing their profitability. Additionally, the Energy Plus contracts were affected by the growth of Renewable MAT contracts, by the GU300 surplus energy. 2.1.3.2 Renewable Energy Term Market (“Renewable MAT” Regime) Pursuant to Resolution No. 281/17, the MEyM regulated the Renewable MAT regime with the purpose of setting the conditions for large users within the WEM and WEM distributing agents’ large users covered by Section 9 of Law No. 27,191 to meet their demand supply obligation from renewable sources through the individual purchase within the MAT of electric power from renewable sources or self-generation from renewable sources. Furthermore, this resolution regulates the conditions applicable to projects for the generation, self-generation and co-generation of electric power from renewable sources. Specifically, the RENPER was created for the registration of such projects. Projects destined to the supply of electric power from renewable sources under the Renewable MAT regime may not be covered by other remuneration mechanisms, such as the agreements under the Renovar rounds. Surplus energy will be sold in the spot market. Finally, contracts executed under the Renewable MAT regime will be administered and managed in accordance with the WEM procedures. The contractual terms —life, allocation priorities, prices and other conditions, notwithstanding the maximum price set forth in Section 9 of Law No. 27,191— may be freely agreed between the parties, although the committed electricity volumes will be limited by the electric power from renewable sources produced by the generator or supplied by other generators or suppliers with which it has purchase agreements in place. For further information on the projects PEPE II and PEPE III conducted under this resolution, see Note 16.1.1. 2.1.4 Supply Agreements with CAMMESA 2.1.4.1 SE Resolution No. 220/07 (“Agreement Res.220”) Aiming to encourage new investments to increase the generation offer, the SE passed Resolution No. 220/07, which empowers CAMMESA to enter into Agreement with WEM Generating Agents for the energy produced with new equipment. These will be long-term agreements and the price payable by CAMMESA should compensate the investments made by the agent at a rate of return to be accepted by the SE. Under this regulation, the Company, through its thermal power plants Loma de La Lata, Piquirenda and Barragán, has executed Agreement Res.220 to sell energy and power capacity for a total amount of 856 MW. For further information on the project to the closing of the combined cycle at CTB conducted under this resolution, see Note 16.1.4. 2.1.4.2 SEE Resolution No. 21/16 As a result of the state of emergency in the national electricity sector, the SEE issued Resolution No. 21/16 calling for parties interested in offering new thermal power generation capacity with the commitment to making it available through the WEM for the 2016/2017 summer; 2017 winter, and 2017/2018 summer periods. Successful bidders will enter into a wholesale power purchase agreement with CAMMESA for a term of 10 years. The remuneration will be made up of the available power capacity price plus the variable non-fuel cost for the delivered energy and the fuel cost (if offered), less penalties and fuel surpluses. Surplus power capacity is sold in the spot market. Pursuant to this resolution, the Company, through its Loma de la Lata, Ingeniero White and Pilar thermal power plants, has effective agreements with CAMMESA for the sale of energy and power capacity for a total 305 MW. 2.1.4.3 SEE Resolution No. 287/17 On May 10, 2017 the SEE issued Resolution No. 287/17 launching a call for tenders for co-generation projects and the closing to CC over existing equipment. The projects should have low specific consumption (lower than 1,680 kcal/kWh with natural gas and 1,820 kcal/kWh with alternative liquid fuels), and the new capacity should not exceed the existing electric power transmission capacity; otherwise, the cost of the necessary extensions will be borne by the bidder. Awarded projects will be remunerated under a wholesale power purchase agreement which will be effective for a term of 15 years. The remuneration will be made up of the available power capacity price plus the variable non-fuel cost for the delivered energy and the fuel cost (if offered), less penalties and fuel surpluses. Surplus power capacity is sold in the spot market. SRRYME Resolution No. 25/19 authorized awardees of projects under SEE Resolution No. 287/17 to submit a new scheduled commissioning date, which will operate as the new committed commissioning date under the wholesale power purchase agreements, with a limit of 180 days as from the originally committed commissioning date. However, the Company has ratified the originally committed date. For further information on the project to the closing of the combined cycle at Genelba conducted under this resolution, see Note 16.1.3. 2.1.4.4 Renovar Programs In order to meet the objectives, set by Law No. 26,190 and Law No. 27,191 promoting the use of renewable sources of energy, the MEyM called for open rounds for the hiring of electric power from renewable sources (RenovAr Programs, Rounds 1, 1.5 and 2) within the WEM. These calls aimed to assign power capacity contracts from different technologies (wind energy, solar energy, biomass, biogas and small hydraulic developments with a power capacity of up to 50 MW). Successful bidders will enter into renewable electric power supply agreements for the sale of a committed annual electric power block for a term of 20 years. Additionally, several measures have been established to promote the construction of projects for the generation of energy from renewable sources, including tax benefits (advance VAT reimbursement, accelerated depreciation of the income tax, import duty exemptions, etc.) and the creation of a fund for the development of renewable energies destined, among other objectives, to the granting of loans and capital contributions for the financing of such projects. Under this regulation, the Company, through Greenwind, has a supply agreement in place with CAMMESA for a total 100 MW. 2.1.5 Electricity transmission cost payable by Generators On November 28, 2017, SEE Resolution No. 1,085/17 approved a new cost distribution methodology that represents the transmission service’s remuneration within the WEM. In this regard, the SEE amended the original regulation of the WEM transmission system, which provided that transmission service costs would be allocated to the Demand and electric power Generation, and resolved that generators should stop paying costs associated with transmission, and start paying a charge representing operating and maintenance costs for connection and transformation equipment linking with the high-voltage transmission system as from December 1, 2017. This amendment implied a cost reduction for the Company. 2.1.6 Fuel Self-Supply for Thermal Power Plants SGE Resolution No. 70/18, published in the BO on November 6, 2018, empowered generating, co-generating and self-generating agents within the WEM to acquire fuels, without distinction, required for own generation. This resolution superseded Section 8 of Resolution No. 95/13 of the former SE, which provided that the supply of fuels for electric power generation would be centralized in CAMMESA (with the exception of the generation covered under the Energy Plus regime). Likewise, CAMMESA remained in charge of the commercial management and the dispatch of fuel for generators which do not or cannot make use of such capacity. Under the scheme set forth by SGE Resolution No. 70/18, the cost of generation with own fuels was valued according to the mechanism for the recognition of the Variable Production Costs recognized by CAMMESA. For implementation, maximum prices at the PIST for natural gas destined to the generation of electricity to be sold in the WEM, set by MINEM Resolution No. 46/18 and SGE Notes No. 66680075/18 and 07973690/19. In case the generator has opted to supply its own fuel for generation and such fuel is not available at the time of dispatch, the calculation of the power capacity availability will be reduced to 50% of the actual availability. Similarly, it will lose its dispatch order, and in case the OED assigns it fuel for generation, the generated energy will be remunerated at just 50% of the approved non-fuel variable costs. In the seasonal programming conducted on November 12, 2018, the Company has opted to make use of this self-supply capacity and has destined a significant part of its natural gas production as an input to its thermal units’ dispatch. The scheme set forth by SGE Resolution No. 70/18 was in effect during 2019; however, on December 27, 2019, the Ministry of Productive Development passed Resolution No. 12/19, which abrogated, effective as from December 30, 2019, SGE Resolution No. 70/18, and re-established the validity of section 8 and section 4 of SE Resolutions No. 95/13 and 529/14, respectively, thus restoring the CAMMESA centralization scheme for the supply of fuels for generation purposes. 2.1.7 Agreement for the Regularization and Settlement of Receivables with the WEM On August 5, 2019 and under the call to Generators, the Company and certain subsidiaries executed with CAMMESA an Agreement for the Regularization and Settlement of Receivables with the WEM (the “Agreement”), as instructed through SGE Note NO-2019-66843995-APN-SGE#MHA. Pursuant to the Agreement, CAMMESA undertook to pay the outstanding LVFVDs after discounting the debts taken on with the WEM under the Financing Agreements, Loan Agreements and Receivables Assignment Agreements executed by generators, and applying a 18% write-off on the balance. In this sense, the parties have agreed a total net settlement amount for the outstanding LVFVDs taking into consideration the interest update as of July 31, 2019 and the effects of the mentioned write-off, which amounts to $ 2,122.7 million, before tax withholdings for a total amount of $ 392.9 million. Finally, on August 7, 2019, the total agreed amount was collected, net of tax withholdings, for an amount of $ 1,729.8 million (U$S 39.4 million) corresponding to outstanding LVFVDs. In furtherance of the undertaken commitments, the Company and certain subsidiaries have waived all submitted claims and have irrevocably dismissed their rights to file any kind of claim (whether administrative and/or judicial) against the Federal Government, the SGE and/or CAMMESA regarding the outstanding LVFDVs. As a result of the Agreement, the Company has recognized revenues in the amount of U$S 5.9 million and net financial profits for U$S 71.1 million. 2.1.8 Loosening up of charges and interests in late payment of the economic transaction SRRYME Resolution No. 29/2019 provided for a relaxation in the application of penalty interest and charges in case of delays in the payment of economic transactions within the WEM. i. Reduction of surcharges ii. Compensatory and penalty interest iii. Compensations 2.2 Transmission 2.2.1 Tariff situation During 2019, pursuant to the provisions of the RTI, the ENRE continued applying the semi-annual tariff update mechanism in accordance with the applicable formula, which depends on the IPIM, the IPC and the Salary Index, as long as compliance with the trigger clause is verified. On March 22, 2019, the ENRE issued Resolutions No. 67/19 and No. 68/19 updating Transener and Transba’s remunerations by 25.15% and 26.53% against the previous semester, reaching a cumulative 78.41% and 81.26% increase, respectively, for the December 2016 – December 2018 period, applicable to the remuneration scheme as from February 2019. On September 25, 2019, the ENRE issued Resolutions No. 269/19 and No. 267/19 updating Transener and Transba’s remunerations by 18.83% and 18.81% against the previous semester, reaching a cumulative 112.41% and 115.75% increase, respectively, for the December 2016 – June 2019 period, applicable to the remuneration scheme as from August 2019. On the other hand, on July 3, 2018, the ENRE informed the beginning of the procedure to determine the remuneration of the Independent Carriers in exploitation stage: TIBA (Transba), Fourth Line (Transener), YACYLEC and LITSA. In this regard, on October 8, 2018, the costs, investments and expected tariff corresponding to Fourth Line and TIBA were presented to the ENRE. As of the date hereof, the ENRE has not issued the resolution with the results of the analysis of the requested information. As of the date of issuance of these Consolidated Financial Statements, the ENRE Resolution has not yet been issued with respect to the tariff update corresponding to the semester July-December 2019, applicable to the remuneration scheme as from February 2020. 2.2.2 SADI Service Outage On June 16, 2019, at 07:07 a.m., the SADI experienced a total outage. This total outage was a result of the concurrence of multiple shortcomings within the SADI, some of them external to the Transmission System operated and maintained by Transener. As regards the transmission system under the responsibility of Transener, the fault was due to a specific technical problem, and not to the lack of investment and maintenance. Following the change in the configuration of the littoral corridor due to the 500 kV Colonia Elía – Campana / Colonia Elía – Manuel Belgrano lines bypass, the DAG mechanism was not properly adjusted and failed to recognize signals sent out by the protection system. This bypass was made on account of the relocation of tower 412 to support the highest possible power transmission capacity in the littoral corridor. Due to the great volume of electricity dispatched from this corridor and the DAG failure, there was an imbalance between supply and demand which could not be redressed by the system’s other restraint barriers external to the electric power transmission service, resulting in a total outage. The 500 kV Transmission System was available immediately after the disruption, and 100% of the transmission lines were available to come into operation and allow for the restoration of the system. Service restoration was overall fast (within 8:30 hours, 75% of the country’s demand had been restored). Transener estimates that the above-mentioned event will give rise to a U$S 0.1 million penalty, which has been registered by Transener. This estimate is based on the application of the High-Voltage Transmission System’s Service Quality and Penalties Regime attached to Transener’s Concession Agreement as sub-annex II-B. As of the date of these Consolidated Financial Statements, the ENRE has not applied the penalty to Transener, which may differ from Transener’s estimates. This event will have an impact on 2020-year figures related to penalties, which will be increased, and premiums, which will be reduced, due to the Additional Service Quality and Sanctions Regime established by Resolutions No. 552/16 and No. 580/16. 2.3 Energy distribution 2.3.1 General Edenor Concession was granted in 1992 for a 95-year term, which may be extended for an additional maximum period of 10 years. The ENRE is empowered to control the quality levels of the technical product and service, the commercial service and the compliance with public safety regulations, as provided for in the Concession Agreement. If the Distribution Company fails to comply with the obligations assumed, the ENRE may apply the penalties stipulated in the aforementioned Agreement. 2.3.2 Edenor’s economic and financial situation In the last four years, Edenor recorded negative working capital. This situation was not reversed after the application from February 1, 2017 of the new tariff arising from RTI, due mainly to the constant increase of its operating costs, necessary to maintain the level of service, the Argentine economy’s inflationary environment, and the sustained recession since mid-2018, with the consequent impact on the decline in income, the extension of collection periods and the steady increase in levels of energy theft. (See Note 1.2). Despite the previously described situation, it is worth pointing out that, in general terms, the quality of the electricity distribution service has been improved, both in duration and in interruption frequency. In view of the continuous increase of the costs associated with the provision of the service, as well as the need for additional investments to meet the greater seasonal demand, Edenor has taken a series of measures aimed at mitigating the negative effects of this situation on its financial structure, minimizing the impact on the sources of employment, the execution of the investment plan, and the carrying out of the essential operation, maintenance and improvement-related works that are necessary to maintain the provision of the public service, object of the concession, in a satisfactory manner in terms of quality and safety. Additionally, on December 23, 2019, the PEN enacted Law No. 27,541, which has a direct impact on Edenor’s financial solvency. Taking into account that the realization of the measures necessary to reverse the manifested negative trend depends on the occurrence of certain events that are not under Edenor’s control, the Edenor |
3. BASIS OF PREPARATION
3. BASIS OF PREPARATION | 12 Months Ended |
Dec. 31, 2019 | |
Basis Of Preparation | |
BASIS OF PREPARATION | These Consolidated Financial Statements have been prepared in accordance with IFRS issued by IASB. These Consolidated Financial Statements have been approved for issue by the Board of Directors dated March 9, 2020. Significant accounting policies adopted in the preparation of these Consolidated Financial Statements are described in Note 4, which have been consistently applied in these Consolidated Financial Statements, except as mentioned in Note 3.1. These accounting policies have been applied consistently by all Group companies. 3.1 Change in Functional Currency The Company changed its functional and presentation currencies from the Peso to the U.S. dollar commencing on January 1, 2019 following a change in facts and circumstances relevant to its business operations. Therefore, as from January 1, 2019, the Company records its operations in U.S. dollars, the new functional currency, and also presents its Consolidated Financial Statements in U.S. dollars. For purposes of effecting this change, the Company has considered the following factors that have influenced the environment in which the entity operates and its sales prices: i. the divestment in the refining and distribution segment in 2018, which has historically been subject to regulations by the Argentine Government and prices set in Pesos; ii. the growing trend of the execution of agreements denominated in U.S. dollars in line with the Company’s strategy to focus investments and resources on the expansion of its power generation installed capacity; and iii. the keeping in effect of the remuneration scheme for generation during 2019, with prices directly established in U.S. dollars by the Argentine Government, despite the context of instability both at the local and international levels, including the significant exchange rate stress that the Argentine economy has endured. The Company effected the change in functional currency prospectively as from January 1, 2019, as required by IAS 21 “The effects of changes in foreign exchange rates”. Upon the change in the functional currency, all transactions in currencies other than the functional currency are considered “foreign currency transactions”. After the closing of the fiscal year, Resolution SE No. 31/20, as detailed in Note 23, exclusively modified the remuneration scheme for sales in the spot market established by SRRYME Resolution No. 1/19 as from the commercial transaction corresponding to February 1, 2020. It is worth highlighting that even if the above-mentioned modification adversely affects the profitability of the generation business, the management has concluded that it does not constitute a change to the underlying primary economic environment in which the entity operates due to: i) the higher incidence in 2019 of revenues from dollar-denominated contracts compared to revenues from sales in the spot market in the generation segment as a result of the commissioning of PEPE II and PEPE III wind farms for 106 MW in May and June 2019, which will increase in 2020 through the entry into effect of the contract remunerating the extension and closing to combined cycle of the CTGEBA for 383 MW; and ii) the fact that the dollar remains the basis for setting sales prices and costs in the oil & gas and petrochemicals segments. 3.2 Comparative information The comparative information has been stated in terms of the measuring unit current as of December 31, 2018 in accordance with IAS 29 "Financial reporting in hyperinflationary economies", since the Peso was the Company’s functional currency up to that date. The inflation adjustment was calculated taking into consideration the indexes set by the FACPCE based on the price indexes published by the INDEC. As of December 31, 2018, the price index increased to 184.255, with an annual inflation rate of 47.6%. As from the change in functional currency detailed in Note 3.1, the Company has discontinued the preparation and presentation of financial statements in accordance with IAS 29, and has treated the amounts expressed in terms of the measuring unit current as of December 31, 2018 as the basis for the carrying amounts in subsequent financial statements. The information as of December 31, 2018 and 2017 disclosed for comparative purposes arises from the Consolidated Financial Statements denominated in Pesos stated in terms of the measuring unit current as of December 31, 2018 in accordance with IAS 29, and was translated into U.S. Dollars using the exchange rate as of that date. Certain not significant reclassifications have been made to those financial statements to keep the consistency in the presentation with the amounts of the current year. |
4. ACCOUNTING POLICIES
4. ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies | |
ACCOUNTING POLICIES | The main accounting policies used in the preparation of these consolidated Consolidated Financial Statements are explained below. 4.1 New accounting standards, amendments and interpretations issued by the IASB effective as of December 31, 2019 and adopted by the Company The Company has first applied the following standards and/or amendments as from January 1, 2019: - IFRS 16 – “Leases” (issued in January 2016). - - IFRS 9 – “Financial Instruments” (application guideline amended in October 2017) - IAS 28 – “Investments in Associates and Joint Ventures” (amended in October 2017) - Annual Improvements to IFRS Standards 2015–2017 Cycle (issued in December 2017) - IAS 19 – “Employee Benefits” (amended in February 2018) The impact of the initial application of IFRS 16 in the Company’s operating results and financial position as from January 1, 2019 is detailed below. The application of the remaining standards, amendments or interpretations did not have any impact on the results of the operations or the financial position of the Company. 4.1.1 Impacts of the adoption of IFRS 16 The Company has opted to apply IFRS 16, using the simplified approach, in relation to lease contracts previously identified as such under IAS 17, retrospectively with the cumulative effect recognized as an adjustment to the opening balance of retained earnings as of January 1, 2019, without restating comparative information. Until December 31, 2018, only contracts classified as financial leases under IAS 17 were capitalized by the Company, that is, contracts where the Company had substantially all of the risks and rewards of ownership of the leased asset. At the financial lease´s inception, the Company recorded an asset and a liability for the same value, corresponding to the leased property’s fair value, or, if lower, the present value of the minimum lease payments. The corresponding rental obligations, net of finance charges, were included in other liabilities. Each lease payment was allocated between the liability and the finance cost. The finance cost was charged to profit or loss over the lease period so as to produce a constant periodic interest rate on the remaining liability balance for each period. Property, plant and equipment acquired under financial leases were depreciated over the asset’s useful life or, if lower, over the lease term. Leases in which a significant portion of the risks and rewards of ownership were not transferred to the Company were classified as operating leases. Payments made under operating leases (net of any incentive received from the lessor) were charged to profit or loss on a straight-line basis over the lease period. Management has reviewed effective lease contracts and has recognized a right-of-use asset in the amount of U$S 8 million corresponding to the amount of the lease liability as of the adoption date (which equals the present value of the remaining lease payments), as detailed below: Operating lease commitments as of 12.31.2018 10.5 Discount using incremental borrowing rate of 58.16% as of 01.01.2019 (2.4) Exchange differences on translation (0.1) Lease liability recognised as of 01.01.2019 8 The rest of the identified lease commitments correspond to contracts ending within 12 months of the date of initial application, which continue to be recognized by the Company on a straight-line basis. As of the adoption date, the Company has maintained the recorded book value for right-of-use assets and lease liabilities which were classified as finance leases under IAS 17. Finally, no transition adjustments were made for leases in which the Company acts as a lessor. Consequently, the Company has not recognized any adjustment to retained earnings upon the initial application of IFRS 16. 4.2 New standards, amendments and interpretations issued by the IASB not yet effective and which have not been early adopted by the Company - IFRS 17 - “Insurance Contracts”: issued in May 2017. It supersedes IFRS 4, introduced in 2004 as an interim standard, which gave companies dispensation to carry on accounting for insurance contracts using national accounting standards, thus resulting in several application approaches. IFRS 17 sets the principles for the recognition, measurement, presentation and disclosure of information associated with insurance contracts and is applicable as from January 1, 2021, allowing for its early adoption for entities already applying IFRS 9 and IFRS 15. The Company estimates that its application will not have a significant impact on the Company’s operating results or financial position. - Conceptual Framework: in March 2018, the IASB published a revised conceptual framework which will supersede the current one. However, this framework is not a standard in itself and will not override any existing standard. The concepts of the revised conceptual framework will be immediately taken into consideration in the issuance of future standards by the IASB and the Interpretations Committee. Preparers of financial statements under IFRS will consider the revised conceptual framework for the development of accounting policies on matters not specifically addressed by the IFRS for annual periods beginning on or after January 1, 2020. - IFRS 3 – “Business Combinations”: amended in October 2018. It clarifies the definition of business and establishes guidelines for determining whether a transaction should be accounted for as a business combination or as an acquisition of assets. It applies to acquisition transactions as from January 1, 2020, and allows for its early adoption. - IAS 1 – “Presentation of Financial Statements” and IAS 8 – “Accounting Policies, Changes in Accounting Estimates and Errors”: amended in October 2018. They clarify the definition of materiality and incorporate the concept of “information shadowing” when there is an effect similar to omitting or reporting inaccurate information. They apply prospectively to annual periods starting on or after January 1, 2020, and allow for early adoption. - Amendments to IFRS 9 – “Financial Instruments”, IAS 39 – “Financial instruments: Presentation” and IFRS 7 – “Financial Instruments: Disclosures”: it incorporates temporary exemptions in the case of hedge relationships affected by the interest rate benchmark reform pursuant to the recommendations published by the Financial Stability Board (FSB) in July 2014. Amendments are applicable to fiscal years starting on or after January 1, 2020, allowing for early adoption. 4.3 Effects of changes in foreign exchange rates 4.3.1 Functional and presentation currency The information included in these Consolidated Financial Statements is recorded and presented in U.S. Dollars, which is the Company’s functional currency, that is, the currency of the primary economic environment where the entity operates. 4.3.2 Foreign-currency transactions and balances Foreign currency transactions are translated into the functional currency at the exchange rates prevailing on each transaction date or valuation date, when items are remeasured. Foreign exchange gains and losses arising on the settlement of monetary items and on translating monetary items at the closing of the fiscal year using year-end exchange rate are recognized within the financial results in the statement of comprehensive income, with the exception of capitalized amounts. 4.3.3 Group companies’ translation into functional currency The results and financial position of subsidiaries, joint ventures and associates whose functional currency is the Argentine Peso, a currency of a hyperinflationary economy, are translated into the Company’s functional currency using the year-end exchange rate. The results generated by the application of IAS 29 adjustment mechanism for hyperinflationary economies, on the opening equity measured in functional currency are recognized under “Other comprehensive income”. 4.3.4 Classification of Other comprehensive income within the Company’s equity The Company classifies and directly accumulates within equity, in the retained earnings line, the results generated by the application of the IAS 29 adjustment mechanism on the opening retained earnings, while the remaining results are presented in a separate component of equity and accumulated until the disposal of the foreign operation in “Other comprehensive income”, in accordance with IAS 21. 4.4 Principles of consolidation and equity accounting 4.4.1 Subsidiaries Subsidiaries are all entities over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. The Group cease consolidation of entities from the date that control ceases. The acquisition method of accounting is used to account for business combinations by the Group (see Note 4.4.5 below). Intercompany transactions, balances and unrealized gains on transactions between Group companies are eliminated. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the transferred asset. Accounting policies of subsidiaries have been changed when necessary to ensure consistency with the policies adopted by the Group. Non-controlling interests in the results and equity of subsidiaries are shown separately in the Consolidated Statement of Comprehensive Income, Consolidated Statement of Changes in Equity and Consolidated Statement of Financial Position respectively. 4.4.2 Associates Associates are all entities over which the group has significant influence but not control or joint control. This is generally the case where the Group holds between 20% and 50% of the voting rights. Investments in associates are accounted for using the equity method of accounting (see Note 4.4.4 below), after initially being recognized at cost. 4.4.3 Joint arrangements Investments in joint arrangements are classified as either joint operations or joint ventures, according IFRS 11 “ Joint Arrangements” 4.4.3.1 Joint operations The Company recognizes its direct right to the assets, liabilities, incomes and expenses of joint operations and its share of any jointly held or incurred assets, liabilities, incomes and expenses. These have been incorporated in the Consolidated Financial Statements under the appropriate headings. 4.4.3.2 Joint ventures Interests in joint ventures are accounted for using the equity method (see Note 4.4.4 below), after initially being recognized at cost. 4.4.4 Equity Method Under the equity method of accounting, the investments are initially recognized at cost and adjusted thereafter to recognize the Group’s share of the post-acquisition profits or losses of the investee in profit or loss, and the Group’s share of movements in other comprehensive income of the investee in other comprehensive income. Dividends received or receivable from associates and joint ventures are recognized as a reduction in the carrying amount of the investment. When the Group’s share of losses in an equity-accounted investment equals or exceeds its interest in the entity, together with any long-term interests that, in substance, form part of the net investment, the Group does not recognize further losses, unless it has incurred obligations or made payments on behalf of the other entity. Unrealized gains on transactions between the Group and its associates and joint ventures are eliminated to the extent of the group’s interest in these entities. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of equity accounted investees have been changed where necessary to ensure consistency with the policies adopted by the Group. The carrying amount of equity accounted investments is tested for impairment in accordance with the policy described below in Note 4.9. 4.4.5 Business combinations The acquisition method of accounting is used to account for all business combinations, regardless of whether equity instruments or other assets are acquired. The consideration transferred for the acquisitions comprises: i. the fair value of the transferred assets, ii. the liabilities incurred to the former owners of the acquired business, iii. the equity interests issued by the group, iv. the fair value of any asset or liability resulting from a contingent consideration arrangement, and v. the fair value of any pre-existing equity interest in the subsidiary. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. The group recognises any non-controlling interest in the acquired entity on an acquisition-by-acquisition basis at the non-controlling interest’s proportionate share of the acquired entity’s net identifiable assets. Acquisition-related costs are expensed as incurred. The value of the goodwill represents the excess of: Where settlement of any part of cash consideration is deferred, the amounts payable in the future are discounted to their present value as at the date of exchange. The discount rate used is the entity’s incremental borrowing rate, being the rate at which a similar borrowing could be obtained from an independent financier under comparable terms and conditions. Contingent consideration is classified either as equity or a financial liability. Amounts classified as a financial liability are subsequently remeasured to fair value with changes in fair value recognised in profit or loss. If the business combination is achieved in stages, the acquisition date carrying value of the acquirer’s previously held equity interest in the acquiree is remeasured to fair value at the acquisition date. Any gains or losses arising from such remeasurement are recognised in profit or loss. The Group has up to 12 months to finalize the accounting for a business combination. Where the accounting for a business combination is not complete by the end of the year in which the business combination occurred, the Group reports provisional amounts. 4.4.6 Changes in ownership interests The Group treats transactions with non-controlling interests that do not result in a loss of control as transactions with equity owners of the group. A change in ownership interest results in an adjustment between the carrying amounts of the controlling and non-controlling interests to reflect their relative interests in the subsidiary. Any difference between the amount of the adjustment to non-controlling interests and any consideration paid or received is recognized in “Other reserves” within equity attributable to owners of the Company. When the Group ceases to consolidate or equity account for an investment because of a loss of control, joint control or significant influence, any retained interest in the entity is remeasured to its fair value with the change in carrying amount recognized in profit or loss. This fair value becomes the initial carrying amount for the purposes of subsequently accounting for the retained interest as an associate, joint venture or financial asset. In addition, any amounts previously recognized in other comprehensive income in respect of that entity are accounted for as if the Group had directly disposed of the related assets or liabilities. This may mean that amounts previously recognised in other comprehensive income are reclassified to profit or loss. If the ownership interest in a joint venture or an associate is reduced but joint control or significant influence is retained, only a proportionate share of the amounts previously recognized in other comprehensive income are reclassified to profit or loss where appropriate. 4.5 Segment reporting Operating segments are reported in a manner consistent with the internal reporting provided to the Executive committee. The Executive Committee, is the highest decision-making authority, is the person responsible for allocating resources and setting the performance of the entity’s operating segments, and has been identified as the person/ body executing the Company’s strategic decisions. In segmentation the Company considers transactions with third parties and intercompany operations, which are done on internal transfer pricing based on market prices for each product. 4.6 Property, plant and equipment Property, Plant and Equipment is measured following the cost model. It is recognized at acquisition cost less depreciation a less any accumulated impairment. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the group and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognised when replaced. All other repairs and maintenance are charged to profit or loss during the reporting period in which they are incurred. The cost of work in progress whose construction will extend over time includes, if applicable, the computation of financial costs accrued on loans granted by third parties and other pre-production costs, net of any income obtained from the sale of commercially valuable production during the launching period. Works in progress are valued according to their degree of progress. Works in progress are recorded at cost less any loss due to impairment, if applicable. Assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each year. An asset’s carrying amount is written down immediately to its recoverable amount if the asset´s carrying amount is greater than its estimated recoverable amount. Gains and losses on disposals are determined by comparing the sale price with the carrying amount, stated in terms of the measuring unit current at the disposal date. 4.6.1 Depreciation methods and useful lives The group depreciates productive wells, machinery and camps in the oil and gas production areas according to the units of production method, by applying the ratio of oil and gas produced to estimated proved developed oil and gas reserves. The acquisition cost of property with proved reserves is depreciated by applying the ratio of oil and gas produced to estimated proved oil and gas reserves. Acquisition costs related to properties with unproved reserves is valued at cost with recoverability periodically assessed on the basis of geological and engineering estimates of possible and probable reserves that are expected to be proved over the life of each concession. Machinery and generation equipment (including any significant identifiable component) are depreciated under the unit of production method. The group´s remaining items of property, plant and equipment (including any significant identifiable component) are depreciated by the straight-line method based on estimated useful lives, as detailed below: Buildings: 50 years Substations: 35 years High voltage lines: 40 - 45 years Medium voltage lines: 35 - 45 years Low voltage lines: 30 - 40 years Transformer centrals: 25 - 35 years Meters: 25 years Vehicles: 5 years Furniture, fittings and communication equipment: 5- 20 years Computer equipment and software: 3 years Tools: 10 years Gas Plant and Pipeline: 20 years If appropriate, the depreciation method is reviewed and adjusted at the end of each year. 4.6.2 Asset retirement obligations Estimated future costs of asset retirement obligations on well abandonment in oil and gas areas and wind turbines decommissioning in wind farms, discounted at a risk adjusted rate, are capitalized in the cost of the assets and depreciated using the units of production method. Additionally, a liability at the estimated value of the discounted amounts payable is recognized. Changes in the measurement of asset retirement obligations that result from changes in the estimated timing, amount of the outflow of resources required to settle the obligation, or the discount rate, are added to, or deducted from, the cost of the related asset. If a decrease in the liability exceeds the carrying amount of the asset, the excess is recognized immediately in profit or loss. 4.7 Intangible assets 4.7.1 Goodwill Goodwill is the result of the acquisition of subsidiaries. Goodwill represents the excess of the acquisition cost over the fair value of the equity interest in the acquired entity held by the company on the net identifiable assets acquired at the date of acquisition. For impairment testing, goodwill acquired in a business combination is allocated from the acquisition date to each of the acquirer’s CGU or group of CGUs that are expected to benefit from the synergies of the combination. Each unit or group of units that goodwill is allocated represents the lowest level within the entity at which the goodwill is monitored for internal management purposes. 4.7.2 Concession arrangements Concession arrangements corresponding to Edenor and hydroelectric generation plants Diamante and Nihuiles are not under the scope of the guidelines of IFRIC 12 “Service Concession Arrangements”. These concession agreements meet the criteria set forth by the IFRSs for capitalization less depreciation a less any accumulated impairment. They are amortized following the straight-line method based on each asset’s useful life, which corresponds to the life of each concession agreement. 4.7.3 Identified intangible assets in acquired investments Corresponds to intangible assets identified at the moment of the acquisition of companies. Identified assets meet the criteria established in IFRS for capitalization less depreciation a less any accumulated impairment. They are amortized by the straight-line method according to the useful life of each asset, considering the estimated way in which the benefits produced by the asset will be consumed. 4.8 Assets for oil and gas exploration The Company uses the successful efforts method of accounting for its oil and gas exploration and production activities. This method involves the capitalization of: (i) the cost of acquiring properties in oil and gas exploration and production areas; (ii) the cost of drilling and equipping exploratory wells that result in the discovery of commercially recoverable reserves; (iii) the cost of drilling and equipping development wells, and (iv) the estimated asset retirement obligations (see Note 4.6.2). According to the successful efforts method of accounting, exploration costs (including geological and geophysical costs), excluding exploratory well costs, are expensed during the period in which they are incurred. Drilling costs of exploratory wells are capitalized until it is determined that proved reserves exists and they justify the commercial development. If reserves are not found, such drilling costs are expensed. Occasionally, an exploratory well may determine the existence of oil and gas reserves but they cannot be classified as proved when drilling is complete. In those cases, such costs continue to be capitalized insofar as the well has allowed determining the existence of sufficient reserves to warrant its completion as a production well and the Company is making sufficient progress in evaluating the economic and operating feasibility of the project. 4.9 Impairment of non-financial long-lived assets Intangible assets that have an indefinite useful life and goodwill are not subject to amortization and are tested annually for impairment, or more frequently if events or changes in circumstances indicate that they might be impaired. The remaining non-financial long-lived assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs of disposal and value in use. For the purpose of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows which are largely independent of the cash inflows from other assets or groups of assets (CGU). Non-financial long-lived assets, other than goodwill, that have been impaired are reviewed for possible reversal of the impairment at the end of each reporting period. 4.10 Financial assets 4.10.1 Classification The Group classifies its financial assets in the following categories: i. those that are subsequently measured at fair value (either through other comprehensive income or through profit or loss), and ii. those that are subsequently measured at amortised cost. The classification depends on the entity’s business model for managing the financial assets and the contractual cash flow characteristics. Gains and losses from financial assets measured at fair value, will be recorded in the Statement of Comprehensive Income or in Statement of Other Comprehensive Income. Investments in equity instruments are measured at fair value. For those investments that are not held for trading, the Company may make an irrevocable election at initial recognition to present subsequent changes in other comprehensive income. The Company's election was to recognize changes in fair value through profit and loss. The company reclassifies financial assets when and only when it changes its business model for managing those financial assets. 4.10.2 Recognition and derecognition The conventional purchases and sales of financial assets are accounted for at trade date, that is, the date on which the Company undertakes to purchase or sell the asset, or at settlement date. Financial assets are derecognized when contractual rights to the cash flows from the financial assets have expired or been transferred, and the Company has substantially transferred all risks and rewards of ownership of the asset. 4.10.3 Measurement At initial recognition, the Group measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. A gain or loss on a debt investment that is subsequently measured at fair value and is not part of a hedging relationship is recognised in profit or loss and disclosed in “Changes in the fair value of financial instruments” within “Other financial Results. A gain or loss on a debt investment that is subsequently measured at amortised cost and is not part of a hedging relationship is recognized in profit or loss when the financial asset is derecognised or impaired and through the amortization process using the effective interest rate method. The Group subsequently measures equity investments at fair value. Dividends from such investments continue to be recognized in profit or loss as long as they represent a return on investment. 4.10.4 Impairment of financial assets The Company assesses the expected credit losses related to its financial instruments at amortized cost and financial instruments at fair value through other comprehensive income, if applicable. The Company applies the simplified approach allowed by IFRS 9 to measure expected credit losses for trade receivables and other receivables with similar risk characteristics. For this purpose, receivables are grouped by business segment and based on shared credit risk characteristics and expected credit losses are determined based on rates calculated for different ranges of default days from the due date. The expected loss rates are based on the sales collection profiles over a period of 24 months before the end of each year, considering historical credit losses experienced within this period that are adjusted, if applicable, to reflect forward-looking information that could affect the ability of customers to settle the receivables. 4.10.5 Offsetting of financial instruments Financial assets and liabilities are offset, and the net amount reported in the consolidated statements of financial position, when there is a legally enforceable right to offset the recognized amounts, and there is an intention to settle on a net basis, or realize the asset and settle the liability simultaneously. 4.11 Trade and other receivables Trade receivables and other receivables are recognized at fair value and subsequently measured at amortized cost, using the effective interest method, less provision for impairment, if applicable. The Company recognises provisions for impairment on trade and other receivables based on expected credit loss model described in Note 4.10.4. Trade receivables are written off when there is no reasonable expectation of recovery. The Company considers the following default indicators: i) voluntary reorganization proceedings, bankruptcy or initiation of judicial demands; ii) insolvency implying a high impossibility of collection and iii) past due balances greater than 90 days. Receivables arising from services billed to customers but not collected by Edenor, as well as those arising from services rendered but unbilled at the closing date of each financial year are recognized at fair value and subsequently measured at amortized cost using the effective interest rate method. Receivables from electricity supplied to low-income areas and shantytowns are recognized, also in line with revenue, when the Framework Agreement has been renewed for the period in which the service was provided. Where applicable, allowances for doubtful tax credits have been recognized based on estimates on their uncollectibility within their statutory limitation period, taking into consideration the Company’s current business plans. 4.12 Derivative financial instruments and hedging account Derivative financial instruments are measured at fair value, determined as the amount of cash to be collected or paid to settle the instrument as of the measurement date, net of any prepayment collected or paid. Fair value of derivative financial instruments traded in active markets is disclosed based on their quoted market prices and fair value of instruments that are not traded in active markets is determined using different valuation techniques. Subsequent accounting of changes in fair value depends on whether the derivative is designated as a hedging instrument and, if so, the nature of the item being hedged. The Company may designate derivative financial instruments in the following categories: i. fair value hedge of recognized assets or liabilities or over firm commitment (fair value hedge); ii. cash flow hedges of a particular risk associated with recognized assets and liabilities and highly probable future transactions (cash flow hedges), or iii. net investment hedge in foreign operation (net investment hedges). At the beginning of the hedge relationship, the Group documents the economic relationship between the hedging instruments and the hedged items, even if it is expected that changes in the cash flows of the hedging instruments offset changes in the cash flows of the hedged items. The Group documents its objective and risk management strategy to carry out its hedging operations. Changes in the measurement of derivative financial instruments designated as cash flow hedge, which have been determined as effective, are recognized in equity. The gain or loss related to the ineffective portion is recognized immediately in profit or loss. Changes in the measurement of derivative instruments that do not qualify for hedge accounting are recognized in profit or loss. The Company has not formally designated financial instruments as hedging instruments. 4.13 Inventories This line item includes crude oil stock, raw materials, work in progress and finished products relating to Petrochemicals and Oil and Gas business segments as well as materials and spare parts relating to the Generation and Distribution of Energy business segments. Inventories are stated at the lower of cost or net realizable value. Cost is determined using the weighted average price method. The cost of inventories includes expenditure incurred in purchases and production and other necessary costs to bring them to their existing location and condition. In case of manufactured products and production in process, the cost includes a portion of indirect production costs, excluding any idle capacity (slack). The net realizable value is the estimated selling price in the ordinary course of business less the estimated cost of completion and the estimated costs to make the sale. The assessment of the recoverable va |
5. GROUP STRUCTURE
5. GROUP STRUCTURE | 12 Months Ended |
Dec. 31, 2019 | |
Group Structure | |
GROUP STRUCTURE | 5.1. Business combinations 5.1.1 Corporate reorganization The corporate reorganizations mentioned below are carried out in order to obtain important benefits for the Company and all its corporate group, as they will allow for enhanced operating efficiency; an optimized use of available resources; the leveraging of technical, administrative and financial structures; and the implementation of converging policies, strategies and goals. Furthermore, the complementarity between the participating companies could be leveraged, thus reducing costs resulting from the duplication and overlapping of operating and administrative structures. The following reorganizations were perfected by means of a merger through absorption process, under the terms of tax neutrality pursuant to articles 80 and following of the Income Tax Law, 5.1.1.1 2017 Reorganization On September 22, 2017, the Company’s Board of Directors informed that the companies which would take part in the merger would be the Company, as absorbing company, and BLL, CTG, CTLL, EG3 Red, INDISA, INNISA, IPB, PP II and PEPASA, as absorbed companies. The merger became effective on October 1, 2017, date as from which the transfer of the absorbed companies’ equity to the absorbing company became effective and, therefore, all their rights and obligations, assets and liabilities will become incorporated into the absorbing company’s equity, all of which subject to the corresponding corporate approvals under the applicable law and the registration with the Public Registry of Commerce of the merger and the dissolution without liquidation of the absorbed companies. On December 21, 2017, the Board of Directors of Pampa Energía, as absorbing company and BLL, CTG, CTLL, EG3 Red, INDISA, INNISA, IPB, PP II and PEPASA, as absorbed companies, approved the Previous Fusion Commitment, and on April 27, 2018, the Extraordinary General Meetings of Shareholders approved the merger in agreement with the terms of the Previous Fusion Commitment. On June 1, 2018, the final merger agreement was entered into between Pampa and the absorbed companies and was filed for registration before the applicable controlling authorities. On July 20, 2018 the CNV’s authorization on merger publication was obtained and on August 2, 2018, the Public Registry registered the merger. On August 15, 2018, the exchange of PEPASA, CTG, INNISA and INDISA shares for 144,322,083 of the Company was effected, with 1,880 shares remaining as treasury shares since they were fractional or decimal shares which were paid in cash. As of December 31, 2018, in accordance with current regulations, the Company proceeded to sell those shares. There was no exchange ratio for the remaining companies, as Pampa direct and indirect held 100% of the capital stock of these companies. 5.1.1.2 PAMPA – PEFM merger On August 30, 2019, the Company and PEFM’s respective Boards of Directors approved the merger through absorption between the Company, as absorbing company, and PEFM, as absorbed company, establishing July 1, 2019 as the merger's effective date, as from which all PEFM’s rights and obligations, assets and liabilities were incorporated into the Company’s equity. There was no exchange ratio as the Company directly and indirectly held 100% of PEFM’s capital stock. On October 15, 2019, the Company and PEFM’s respective Shareholders’ Meetings approved the merger process. On February 19, 2020, the CNV’s authorization on merger publication was obtained, its registration with the Public Registry remains pending. 5.1.1.3 PAMPA – CPB merger On October 8, 2019, the Company’s Board of Directors instructed to move forward with the tasks allowing to assess the benefits of a merger through absorption process between the Company, as absorbing company, and CPB, as absorbed company, establishing January 1, 2020 as the merger's effective date. 5.1.2 Sale of participations and plant 5.1.2.1 Sale of interest in Greenwind With the purpose of incorporating into the project a strategic partner contributing part of the investments necessary for the development of the Mario Cebreiro Wind Farm, on March 10, 2017, CTLL and PP entered into an agreement with Valdatana Servicios y Gestiones S.L.U., an entity which later changed its name to Viento Solutions S.L. for the sale of 50% of Greenwind’s capital stock and rights for a total amount of U$S 11.2 million. 5.1.2.2 Sale of interest in Oldelval On November 2, 2018, the Company entered into an agreement with ExxonMobil Exploration Argentina S.R.L. for the sale of 21% of Oldelval’s capital stock and rights, maintaining the remaining 2.1% interest. Subsequently, on November 27, 2018, the transaction was closed upon the meeting of the applicable precedent conditions, the purchase price paid by the purchaser amounted to U$S 36.4 million. As a result of the transaction, the Company has recognized a U$S 28 million gain, before taxes. 5.1.2.3 Sale of the Dock Sud storage terminal On March 6, 2019, the Company agreed with Raízen Argentina, a licensee of the Shell brand, on the sale, subject to the meeting of certain conditions precedent which are customary for this kind of transactions, of the Dock Sud storage terminal, which tank yard has a total installed capacity of 228 thousand m3. On March 30, 2019, after the meeting of all precedent conditions, the transfer of the Dock Sud Terminal to the purchaser was completed at a price of U$S 19.5 million, plus U$S 2 million on account of products. The transaction resulted in profits before income tax in the amount of U$S 1 million, which are disclosed in item “Gains/losses on the sale of Property, plant and equipment” under “Other operating income”. 5.2 Discontinued operations As of December 31, 2018 and 2017, the results of operations related to divestment transactions detailed below, have been disclosed within “Discontinued Operations” in the consolidated statement of comprehensive income. 5.2.1 Sale of PELSA shares and certain oil areas On January 16, 2018, the Company agreed to sell to Vista Oil & Gas S.A.B. de C.V. (“Vista”) its direct 58.88% interest in PELSA and its direct interests in the Entre Lomas, Bajada del Palo, Agua Amarga and Medanito-Jagüel de los Machos blocks, in line with the Company's strategy to focus its investments and human resources both on the expansion of its power generation installed capacity and on the exploration and production of natural gas, placing a special focus on the development and exploitation of unconventional gas reserves, as well as to continue investing on the development of its utility concessions. On April 4, 2018, upon the meeting of all applicable conditions precedent, the transaction was closed. The price paid by Vista, considering the agreed adjustments regarding interests in PELSA, amounted to U$S 389 million. This transaction generated a profit comprehensive income net of taxes in the amount of U$S 30 million, as follows: 12.31.2018 Sale price (2) 270 Book value of assets sold and costs associated with the transaction (226) Result for sale 44 Interests (1) 4 Income tax (22) Imputed in results 26 Other comprehensive income (loss) Reclasification exchange differences on translation 6 Income tax (2) Imputed in Other comprehensive income 4 Total comprehensive income 30 (1) Are exposed in "Financial income" in the consolidated statement of comprehensive income related to discontinued operations. (2) Sale price recorded as of December 31, 2018 arises from the financial statements denominated in pesos in accordance with IAS 29, and was translated into U.S. Dollars using the exchange rate as of that date. 5.2.2 Sale of assets in the Refining and Distribution segment On December 7, 2017, the Company executed with Trafigura Ventures B.V and Trafigura Argentina S.A. an agreement for the sale of certain assets in the Company’s refining and distribution segment based on the conviction that the oil refining and distribution business calls for a larger scale to attain sustainability. The assets subject-matter of the transaction were: (i) the Ricardo Eliçabe refinery; (ii) the Avellaneda lubricants plant; (iii) the Caleta Paula reception and dispatch plant; and (iv) the network of gas stations currently operated under Petrobras branding. The Dock Sud storage facility was excluded from the sale, as well as the Company's investment in Refinería del Norte S.A. Pursuant to the foregoing, and in relation with the measurement of the assets and liabilities subject to this transaction an impairment of Intangible assets and Property, plant and equipment in the amount of U$S On May 9, 2018, upon the meeting of all applicable precedent conditions the transaction was subject to, the closing of the sale to Trafigura was carried out. After applying the adjustments stipulated in the purchase and sale agreement, the transaction price amounted to U$S 124.5 million. Furthermore, after the closing of the transaction, Trafigura paid to Pampa U$S 56 million for the purchase of crude oil. As of December 31, 2018, the closing of the transaction did not generate additional profits or losses, according to the following detail: 12.31.2018 Sale price (1) 28 Book value of assets sold and costs associated with the transaction (28) Result for sale - (1) The Company considers that under IFRS it has transferred control over the whole assets since, pursuant to the participation agreements entered into with Trafigura, it has not retained the power to redirect their use or substantially derive other benefits. However, as of the issuance of these Consolidated Financial Statements the process for the legal transfer and actual assignment of the agreements associated with three gas stations has started with the rebranding of to the “Puma” brand, owned by Trafigura, this process is expected to end during the first semester of 2020. 5.2.3 Relevant information on discontinued operations As of December 31, 2018: Oil and gas Refining and distribution Eliminations Total Revenue 66 422 (90) 398 Cost of sales (33) (361) 91 (303) Gross profit 33 61 1 95 Selling expenses (2) (33) - (35) Administrative expenses (1) (4) - (5) Other operating income 1 6 - 7 Other operating expenses (6) (10) - (16) Result from the sale of share of profit and property, plant and equipment 44 - - 44 Operating income 69 20 1 90 Gain on monetary position, net 7 2 (1) 8 Finance income 4 1 - 5 Finance costs (1) - - (1) Other financial results (4) 22 - 18 Financial results, net 6 25 (1) 30 Income before income tax 75 45 - 120 Income tax (26) (14) - (40) Profit of the year from discontinued operations 49 31 - 80 Other comprehensive income (loss) Items that will not be reclassified to profit or loss Income tax (2) - - (2) Reclasification exchange differences on translation 6 - - 6 Exchange differences on translation 4 - - 4 Other comprehensive income of the year from discontinued operations 8 - - 8 Total comprehensive income of the year from discontinued operations 57 31 - 88 Oil and gas Refining and distribution Eliminations Total Total income of the year from discontinued operations attributable to: Owners of the company 47 31 - 78 Non - controlling interest 2 - - 2 49 31 - 80 Total comprehensive income of the year from discontinued operations attributable to: Owners of the company 53 31 - 84 Non - controlling interest 4 - - 4 57 31 - 88 As of December 31, 2017: Oil and gas Refining and distribution Eliminations Total Revenue 259 728 (296) 691 Cost of sales (251) (618) 297 (572) Gross profit 8 110 1 119 Selling expenses (8) (82) - (90) Administrative expenses (6) (19) - (25) Exploration expenses (1) - - (1) Other operating income 16 10 - 26 Other operating expenses (8) (13) - (21) Result from the sale of property, plant and equipment - (28) - (28) Operating income (loss) 1 (22) 1 (20) Financial income 1 1 - 2 Financial expenses - (1) - (1) Other financial results (10) (1) - (11) Financial results, net (9) (1) - (10) Income (loss) before income tax (8) (23) 1 (30) Income tax (28) 8 - (20) Profit (loss) of the year from discontinued operations (36) (15) 1 (50) Other comprehensive income (loss) Items that will not be reclassified to profit or loss Income tax 2 - - 2 Exchange differences on translation (16) - - (16) Other comprehensive loss of the year from discontinued operations (14) - - (14) Total comprehensive income (loss) of the year from discontinued operations (50) (15) 1 (64) Oil and gas Refining and distribution Eliminations Total Total income (loss) of the year from discontinued operations attributable to: Owners of the company (41) (15) 1 (55) Non - controlling interest 5 - - 5 (36) (15) 1 (50) Total comprehensive income (loss) of the year from discontinued operations attributable to: Owners of the company (48) (15) 1 (62) Non - controlling interest (2) - - (2) (50) (15) 1 (64) The consolidated statement of cash flows related to discontinued operations is presented below: 12.31.2018 12.31.2017 Net cash (used in) generated by operating activities (46) 87 Net cash used in investing activities - (50) Net cash generated by (used in) financing activities 42 (31) (Decrease) increase in cash and cash equivalents from discontinued operations (4) 6 Cash and cash equivalents at the begining of the year 6 4 Loss on net monetary position generated by cash and cash equivalents (2) (4) (Decrease) increase in cash and cash equivalents (4) 6 Cash and cash equivalents at the end of the year - 6 5.3. Interest in subsidiaries, associates and joint ventures 5.3.1 Subsidiaries information Unless otherwise indicated, the capital stock of the subsidiaries consists of common shares, each granting the right to one vote. The country of the registered office is also the principal place where the subsidiary develops its activities. 12.31.2019 12.31.2018 Company Country Main activity Direct and indirect participation % Direct and indirect participation % Corod Argentina Oil 100.00% 100.00% CPB Argentina Generation 100.00% 100.00% CPB Energía S.A. Argentina Generation 100.00% 100.00% EcuadorTLC Ecuador Oil 100.00% 100.00% Edenor (1)(7) Argentina Distribution of energy 56.32% 52.18% Enecor S.A. Argentina Transportation of electricity 69.99% 69.99% HIDISA Argentina Generation 61.00% 61.00% HINISA Argentina Generation 52.04% 52.04% PACOSA Argentina Trader 100.00% 100.00% PEA (2) Argentina Generation - 100.00% PEB Bolivia Investment 100.00% 100.00% PACOGEN Argentina Investment 100.00% 100.00% PEFM (3) Argentina Generation - 100.00% Petrobras Energía Colombia Gran Cayman (4) Colombia Oil - 100.00% Petrobras Energía Ecuador Gran Cayman Investment 100.00% 100.00% Energía Operaciones ENOPSA S.A. Ecuador Oil 100.00% 100.00% Petrolera San Carlos S.A. Venezuela Oil 100.00% 100.00% PHA (5) Argentina Investment 100.00% 100.00% PISA Uruguay Investment 100.00% 100.00% PP Argentina Investment 100.00% 100.00% PPSL (6) Spain Investment - 100.00% TGU Uruguay Gas transportation 100.00% 100.00% Transelec Argentina Investment 100.00% 100.00% Trenerec Energía Bolivia S.A. Bolivia Investment 100.00% 100.00% Trenerec S.A. Ecuador Investment 100.00% 100.00% (1) Corresponds to effective interest considering the treasury shares in Edenor´s effect (54.3664% nominal interest) (2) On May 29, 2019, PEA’s Shareholders’ Meetings resolved to change its corporate name to CTB. In the month of June 2019, the Company sold to PACOGEN and YPF 48% and 50%, respectively, of its interest in CTB, whereas PP sold to PACOGEN 2% of its interest in CTB. (3) See Note 5.1.1.2. (4) Liquidated in January 2019. (5) On March 28, 2019, the Company approved PHA’s international address change from Madrid (Spain), to the Autonomous City of Buenos Aires (Republic of Argentina), and on September 20, 2019, the change of jurisdiction was registered with the Public Registry. (6) Liquidated in December 2019. (7) As of December 31, 2019, the quotation of Edenor's ordinary shares and ADR published on the BCBA and the NYSE was $ 24.05 and U$S 6.26 per share, respectively, granting to Pampa (direct and indirect) ownership an approximate stake market value of U$S 149 million. It should be noted that, as of December 31, 2019, participation in Edenor does not exceed its recoverable value. 5.3.1.1 Summarised financial information for each subsidiary that has significant non-controlling interest Non-controlling interests in subsidiaries are not significant for the Company, except for Edenor with 54.3664% equity interest. Edenor is registered in Argentina, which is also the place where it develops its activities. 5.3.1.1.1 Edenor’s Summary statement of financial position 12.31.2019 12.31.2018 Non Current Total non current assets 1,696 1,679 Borrowings 137 191 Other non current liabilities 460 474 Total non current liabities 597 665 Current Cash and cash equivalents 7 1 Other current assets 292 363 Total current assets 299 364 Borrowings 28 29 Other current liabilities 383 528 Total current liabilities 411 557 Total equity 988 821 Non-controlling interest 451 396 5.3.1.1.2 Edenor’s Summary statement of comprehensive income 12.31.2019 12.31.2018 12.31.2017 Revenue 1,502 1,484 1,050 Depreciation (77) (68) (57) Interest income 20 18 12 Interest expense (113) (132) (68) Profit for the year before tax 381 164 148 Income tax (178) (50) (14) Profit for the year 203 114 134 Other comprehensive loss - (1) - Total comprehensive profit of the year 203 113 134 Income of the year attributable to non-controlling interest 98 55 65 Other comprehensive income of the year attributable to non-controlling interest - (1) - Comprehensive income of the year attributable to non-controlling interest 98 54 65 5.3.1.1.3 Edenor’s Summary statement of cash flow 12.31.2019 12.31.2018 12.31.2017 Net cash generated by operating activities 170 255 78 Net cash used in investing activities (86) (221) (63) Net cash used in financing activities (85) (56) (13) (Decrease) increase in cash and cash equivalents (1) (22) 2 Cash and cash equivalents at the begining of the year 1 3 3 Loss on net monetary position generated by cash and cash equivalents 7 19 2 Cash and cash equivalents at the end of the year 7 - 7 5.3.2 Investments in associates and joint ventures The following table presents the main activity and financial information used for valuation and percentages of participation in associates and joint ventures: Information about the issuer Main activity Date Share capital Profit (loss) of the period / year Equity Direct and indirect participation % Associates Refinor Refinery 09.30.2019 2 (3) 57 28.50% OCP (1) Investment 12.31.2019 100 22 266 15.91% TGS (2)(5) Transport of gas 12.31.2019 13 214 803 27.193% Joint ventures CIESA (2) Investment 12.31.2019 11 109 405 50.00% Citelec (3) Investment 12.31.2019 9 38 176 50.00% Greenwind Generation 12.31.2019 - (1) (11) 50.00% CTB (4) Generation 12.31.2019 143 40 227 50.00% (1) The Company holds an indirect interest of 15.91% through PEB. (2) The Company holds a direct and indirect interest of 50% in CIESA, a company that holds a 51% interest in the share capital of TGS. therefore, the Company has an indirect participation of 25.50% in TGS. The Company holds a direct and indirect interest of 1.693% in TGS. (3) Through a 50% interest, the company joint controls Citelec, company that controlled Transener with 52.65% of the shares and votes. As a result, the Company has an indirect participation of 26.33% in Transener. (4) The Company holds an indirect interest of 50% through PACOGEN. (5) As of December 31, 2019, the quotation of TGS's ordinary shares and ADR published on the BCBA and the NYSE was $ 108.65 and U$S 7.17 per share, respectively, granting to Pampa (direct and indirect) ownership an approximate stake market value of U$S 306 million. The details of the balances of investments in associates and joint ventures are as follows: 12.31.2019 12.31.2018 Disclosed in non-current assets Associates Refinor 20 25 OCP 33 35 TGS 21 - 74 60 Joint ventures CIESA 235 259 Citelec 88 88 CTB 114 - 437 347 511 407 Disclosed in non-current liabilities Greenwind (1) 4 4 4 4 (1) The following tables show the breakdown of the result from investments in associates and joint ventures: 12.31.2019 12.31.2018 12.31.2017 Associates Oldelval - 3 1 Refinor (3) (4) (3) OCP 21 35 - TGS 1 - - 19 34 (2) Joint ventures CIESA 50 74 25 CTB 13 - - Citelec 19 21 27 Greenwind - (11) (2) 82 84 50 The evolution of investments in associates and joint ventures is as follows: Note 12.31.2019 12.31.2018 12.31.2017 At the beginning of the year 403 315 255 Reclassifications (1) (16) - 12 Dividends 17 (75) (19) - Decreases - (10) - Increases 108 - - Share of profit 101 118 48 Other comprehensive loss - (1) - Exchange differences on translation (14) - - At the end of the year 507 403 315 (1) In 2019, mainly corresponds to the financial credit with OCP acquired in the transaction with AGIP (see Note 5.3.6.2), and in 2017 corresponds to the deconsolidation for sale of the interest in Greenwind. 5.3.3 Investment in CIESA-TGS 5.3.3.1 Issuance of Corporate Bonds On May 2, 2018, under the Short and Medium-Term Corporate Bonds Program for a maximum amount of U$S 700 million approved by the CNV, TGS issued Class 2 corporate bonds for U$S 500 million at an annual 6.75% rate. Collected funds will be destined by TGS to: (i) the repurchase of Class 1 corporate bonds, (ii) the redemption of Class 1 corporate bonds; and (iii) capital expenditures. TGS General Shareholders' Meeting held on August 15, 2019 approved the extension of TGS´s Corporate Bonds Program from U$S 700 million to U$S 1.2 billion. This extension was authorized on October 9, 2019, by the CNV. 5.3.3.2 Acquisition of own shares in TGS During 2018, TGS’ Board of Directors approved two programs for the repurchase of own shares, on May 9, 2018 and September 6, 2018, which were executed according to the programs established terms. For the definition of these programs, the TGS’ Board of Directors considered TGS’ strong cash position and fund availability, in view of the fact that the TGS’ share price does not reflect either the value or the economic reality its business currently or potentially have. On March 27, 2019, TGS’ Board of Directors approved a third program for the repurchase of own shares, for a maximum amount of up to $ 1,500 million (in terms of the constitution date). On August 26, 2019, after terminating the third repurchase program, the TGS’ Board of Directors approved a forth program for the repurchase of own shares for a total amount of $ 3,200 million (in terms of the constitution date). TGS’s own shares acquired as of October 31, 2019 were distributed as dividend in shares. Finally, on November 19, 2019, a fifth program for the repurchase of own shares was approved for a total amount of $ 4,000 million (in terms of the constitution date). This program has a 120 days term. As of December 31, 2019, TGS holds 9,886,755 treasury shares in its portfolio, which represent 1.24% of its total capital stock. 5.3.3.3 Acquisition of TGS’s ADRs by the Company During the fiscal year ended December 31, 2019, the Company acquired a total number of 1,130,365 TGS’s ADRs, at an acquisition cost of U$S 8 million. 5.3.3.4 Vaca Muerta Project During 2019, TGS successfully completed the assembly and pressurization works on the facilities of an important project at Vaca Muerta that involves a total investment of approximately U$S 260 million and will materially impact on the development of the Vaca Muerta natural gas reserves. The project consisted in the construction of a gas collector pipeline that will allow to transport natural gas extracted by natural gas producers to the regulated transport systems operated by TGS and TGN and a gas conditioning plant in Tratayén city. The Vaca Muerta system have two collector pipelines; the first of them with an extension of 115 kilometers, a 36" diameter and 35 MMm3/d transport capacity (the "Northern Trench") and the second one with an extension of 33 kilometers, 30" diameter and 25 MMm3/d transport capacity (the "South Trench"). The gas transported by these pipelines system will be treated in the new conditioning plant that TGS constructed in Tratayén city, Province of Neuquén with 5.0 MMm3/d of initial capacity. For the development of this project, the implementation of long-term service agreements with different producers was essential to establish the terms and conditions for the provision of transportation and natural gas conditioning services in order to meet ENERGAS’ regulatory requirements to access to the regulated transport system. In this way, TGS becomes the First Midstreamer of Vaca Muerta. Additionally, in February 2020, TGS approved an investment project with a 1-year execution estimated period and U$S 15 million estimated investment. The project will consist in the conditioning plant capacity increase by 2.6 MM3/d, the installation of a butane extraction unit and the construction of facilities for the storage and dispatch of liquids. 5.3.4 Investment in CITELEC 5.3.4.1 Employee Shareholding Program – Transba S.A. In the year 1997, the Executive Branch of the Province of Buenos Aires awarded 100% of Transba’s Series “A”, “B” and “C” shares to Transener. Series “C” shares were awarded subject to the obligation to transfer them to the Employee Shareholding Program benefiting certain Transba employees, Transener holding 89.99% of Transba’s capital stock. On June 28, 2019, Transener acquired all the shares under such program. Consequently, Transener holds 99.99% of Transba’s capital stock. 5.3.4.2 Repurchase of own Corporate Bonds - Transener As of December 31, 2019 Transener’s Corporate Bonds Class 2 amounted to U$S 98.5 million, of which U$S 5 million and U$S 2 million have been acquired and by Transba S.A and Transener S.A., respectively. 5.3.5 Investment in CTB 5.3.5.1 Acquisition of CTEB On May 29, 2019, the Company, after filing a joint offer, received a notification from IEASA whereby PISA, a subsidiary of the Company, through its subsidiary, PACOGEN, and YPF, were awarded National and International Public Tender No. 02/2019, launched pursuant to SGE Resolution No. 160/19, regarding the sale and transfer by IEASA of CTEB. The acquisition of CTEB also involves the assignment in favor of the awardee of the contractual capacity as trustor under the Enarsa-Barragán Financial Trust, the VRDs of which (excluding the VRDs to be acquired by the awardee) amount to U$S 229 million. CTEB, which is located at the petrochemical complex of the town of Ensenada, Province of Buenos Aires, consists of two open-cycle gas turbines, and has a 567 MW installed capacity. The awardee will have to obtain the commissioning of the closing of the combined cycle within a term of 30 months as from the Seventh Amendment to the Trust Agreement’s effective date, thus increasing the installed power capacity to 847 MW, with an estimated investment of U$S 200 million. Both the open and the closed cycle have effective power purchase agreements with CAMMESA under Resolution No. 220/07 issued by the former SE: the first one, entered into on March 26, 2009 and terminating on April 27, 2022, as amended and modified from time to time, and the second one dated March 26, 2013 for a term of 10 years as from the commercial operation of the combined cycle. On June 26, 2019, the acquisition by CTB, a company co-controlled by YPF and PACOGEN, of CTEB transferred by IEASA was completed. The acquisition’s relative price was U$S 282 million, an amount which includes the final (cash) amount offered in the Tender and the acquired VRDs’ purchase price, paid with a contribution of U$S 200 million received by CTB, settled in equal parts by its co-controlling companies, and with a loan received by CTB from a bank syndicate of U$S 170 million. The Power Plant will be managed and operated by Pampa and YPF on a rotational basis over 4-year periods. Pampa will be responsible for managing CTEB’s operations until 2023. And YPF, through its subsidiary YPF Energía Eléctrica S.A., will supervise the necessary works for the closing of the combined cycle. The following table details the consideration transferred and the fair value of the assets acquired and the liabilities assumed by CTB as of June 26, 2019: in million U$S Total consideration transferred (1) (272) Financial assets at fair value 16 Property, plant and equipment 477 Inventories 8 VRDs (229) Fair value of net assets 272 (1) The fair value of property, plant and equipment items and inventories was calculated considering mainly the depreciated replacement cost of the acquired goods. For this purpose, CTB was assisted by an independent specialist engaged by management. The replacement cost approach was applied to measure buildings, equipment, installations and works in progress. The methodology applied to determine their fair value entailed: i. the calculation of replacement costs (mainly based on consultations with suppliers and the analysis of specialized publications and information), ii. an estimate of residual values at the end of their useful life (based on the interest generated by the asset at the end of its useful life and the owner’s disposal policy), and iii. the application of deductions for physical, functional and/or economic impairment, if applicable. The methodology for the determination of the remaining useful life was focused on the analysis of aging, wear and loss of service capacity of the assets resulting from normal use in the activities where they operate. Regarding the work in progress for the closing of the combined cycle, which will allow a 280 MW rated power capacity increase, an estimate of the work progress’ percentage and the depreciation of the installed equipment was made based on physical inspections and the information supplied by the contracts to complete civil and electromechanical works for the closing of the combined cycle. Lastly, a comparative sales approach was used to measure lands and vehicles. For this purpose relevant market data was gathered, mainly sales prices of lands in surrounding areas and published sales prices for vehicles. Additionally, CTB has calculated the weighted present value of future cash flows it expects to receive from the assets to confirm that its fair value does not exceed their recoverable value. As a result of the described process, CTB has not recorded intangible assets associated with the business acquisition. 5.3.5.2 Financial Trust Agreement As a result of CTEB’s award, certain amendments were made to the Enarsa-Barragán financial trust agreement entered into between Bice Fideicomisos S.A. (Nación Fideicomisos S.A.’ continuing company), acting as Trustee, and CTB, in its capacity as Trustor substituting IEASA (former ENARSA) (the “Trust Agreement” or the “Trust”). Under the financial trust, on April 25, 2011, Series B VRDs with public offering for a face value of U$S 582,920,167 were issued. The trust’s underlying flow is made up of the collection rights resulting from the Power Purchase Agreements originally entered into between ENARSA and CAMMESA, where CTB substitutes ENARSA (currently IEASA) as counterparty. Pursuant to the agreement currently in force, CAMMESA will deposit the amounts required by the Trustee in the trust account, which will be destined to the payment of the Trust’s expenses and taxes, the replenishment of expense, reserve and settlement reserve funds, and the payments of Series B VRDs pursuant to the payment schedule. On June 26, 2019, CTB entered into a VRDs transfer agreement with IEASA whereby CTB acquired the outstanding Series B VRDs for a price of U$S 53.5 million (equivalent to 109,628,836 Series B VRDs with a face value of U$S 1 each), thus becoming the holder of such VDRs (the “Trustor’s VRDs”). On August 22, 2019, the seventh amendment to the Trust Agreement was executed, which incorporated several modifications, including the following: - as regards the VRDs: i) the granting of a 24-month grace period (during which only interest will be payable); ii) the modification of the interest rate by the Libor rate plus 6.5%; iii) the determination of capital amortization repayments over a 60-month period (to derive constant debt services); - the obligation to complete the closing of the combined cycle within a term of 30 months, the breach of this obligation resulting in the acceleration of the VRDs; - the incorporation of additional collection rights regarding both the open and the closed-cycle power purchase agreements; - establishing that payments to the Trust should be transferred simultaneously, with the same payment priority and in the same kind than under the Syndicated Loan (and any other debt allowed under the Trust); - providing that upon the occurrence of a CAMMESA Event |
6. RISKS
6. RISKS | 12 Months Ended |
Dec. 31, 2019 | |
Risks | |
RISK | 6.1 Critical accounting estimates and judgments The preparation of financial statements requires the Company’s Management to make future estimates and assessments, to apply critical judgment and to establish assumptions affecting the application of accounting policies and the amounts of disclosed assets and liabilities, income and expenses. The applied estimates and accounting judgments are evaluated on a continuous basis and are based on past experiences and other reasonable factors under the existing circumstances. Actual future results might differ from the estimates and evaluations made at the date of preparation of these Consolidated Financial Statements. The estimates which have a significant risk of producing adjustments on the amounts of the assets and liabilities during the following year are detailed below: 6.1.1 Impairment of non-financial long-lived assets Non-financial long-lived assets, including identifiable intangible assets and right-of-use assets, are reviewed for impairment at the lowest level for which there are separately identifiable cash flows (CGU). For this purpose, each assets group with independent cash flows, each subsidiary, associate and each jointly controlled company has been considered a single CGU, as all of their assets jointly contribute to the generation of cash inflows, which are derived from a single service or product; thus cash inflows cannot be attributed to individual assets. In order to evaluate if there is evidence that a CGU could be affected, both external and internal sources of information are analyzed. Specific facts and circumstances are considered, which generally include the discount rate used in the estimates of the future cash flows of each CGU and the business condition as regards economic and market factors, such as the cost of raw materials, oil and gas, international petrochemical product’s price, the regulatory framework for the energy industry (mainly expected price recognition and compensation costs methodology), the projected capital investments and the evolution of the energy demand. The value in use of each CGU is estimated on the basis of the present value of future net cash flows expected to be derived on the UGE. Management uses approved budgets up to one year as the base for cash flow projections that are later extrapolated into a term consistent with the assets’ remaining useful life, taking into consideration the appropriate discount rates. The discount rates used to discount future net cash flows is the WACC, for each asset or CGU a specific WACC was determined which considered the business segment and the country conditions where the operations are performed. In order to calculate the fair value less the costs of disposal, the Company Management uses the estimated value of the future cash flows that a market participant could generate from the appropriate CGU, less the necessary costs to carry out the sale of the corresponding CGU. The Company Management is required to make judgments at the moment of the future cash flow estimation. The actual cash flows and the values may differ significantly from the expected future cash flows and the related values obtained through discount techniques. 6.1.2 Current and deferred Income tax / Minimum notional income tax The Company’s Management periodically evaluates tax treatments affecting the determination of taxable profit regarding uncertain tax treatment under tax law considering the acceptability of a particular tax treatment by the relevant taxation authority, and, if applicable, recognizes tax provisions to reflect the effect of the uncertainty for each tax treatment based on the amount estimated to be paid to the tax authorities. If the final tax resolution regarding uncertain tax treatments differs from recognized figures, such differences will have an effect on income tax and deferred income tax at the year of such determination. Deferred tax assets are reviewed at each reporting date and reduced in accordance with the probability that the sufficient taxable base will be available to allow for the total or partial recovery of these assets. In assessing the recoverability of deferred tax assets, Management considers if it is likely that a portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets depends on the generation of future taxable income in the periods in which these temporary differences become deductible. To make this assessment, Management takes into consideration the scheduled reversal of deferred tax liabilities, the projections of future taxable income and tax planning strategies. The generation of future taxable profits may differ from those estimated affecting the deductibility of deferred tax assets. 6.1.3 Provision for contingencies The Company is subject to various claims, lawsuits and other legal proceedings that arise during the ordinary course of its business. The Company’s liabilities with respect to such claims, lawsuits and other legal proceedings cannot be estimated with certainty. Periodically, the Company reviews the status of each contingency and assesses potential financial liability, applying the criteria indicated in Note 4.22, for which elaborates the estimates mainly with the assistance of legal advisors, based on information available to the Management at Consolidated Financial Statements date, and taking into account our litigation and resolution/settlement strategies. Contingencies include outstanding lawsuits or claims for possible damages to third parties in the ordinary course of the Company’s business, as well as third party claims arising from disputes concerning the interpretation of legislation. The Company evaluates whether there would be additional expenses directly associated with the ultimate resolution of each contingency, which will be included in the provision if they may be reasonably estimated. The final resolutions of the litigation could differ from Management's estimates, generating current provisions to be inadequate, which could have a material adverse effect on the statement of financial position, comprehensive income, changes in equity and cash flows. 6.1.4 Asset retirement obligations Asset retirement obligations in oil and gas areas after completion of operations require the Company’s Management to estimate the number of wells, long-term well abandonment costs and the time remaining until abandonment. In the same way, the obligations related to the decommissioning of wind turbines in wind farms require the Company’s Management to estimate long-term dismantling costs and the time remaining until the dismantling. Technology, costs and political, environmental and safety considerations constantly change and may result in differences between actual future costs and estimates. Asset retirement obligations’ estimates are adjusted at least once a year or more frequently if there are changes in the assumptions considered in the assessment. 6.1.5 Impairment of financial assets The Group is exposed to losses for uncollectible receivables. The Company Management estimates the final collectability of the accounts receivable. The accounting of expected credit losses for trade receivables and other receivables with similar risk characteristics is based on the Company's best estimate of the default risk and the calculation of the expected credit losses rates, based on historical information of the behavior of the Company's clients, current market conditions and forward-looking estimates at the end of each reporting period. In order to estimate collections related to the generation segment the Company mainly considers the ability of CAMMESA to meet its payment obligations to generators, and the resolutions issued by SGE, which allow the Company to collect its credits with CAMMESA through different mechanisms. Future adjustments to the allowance may be necessary if future economic conditions differ substantially from the assumptions used in the assessment for each year. 6.1.6 Actuarial assumptions in defined benefit plans Commitments with defined benefit plans to employees are recognized as liabilities in the statement of financial position based on actuarial estimates revised annually by an independent actuary, using the projected unit credit method. The present value of defined benefit pension plan depends on multiple factors that are determined according to actuarial estimates, net of the fair value of the plan assets, when applicable. For this purpose, certain assumptions are used including the discount rate and wage growth rate assumptions. 6.1.7 ENRE Penalties and discounts Edenor considers its applicable accounting policy for the recognition of ENRE penalties and discounts critical because it depends on penalizable events, which are valued on the basis of Edenor’s management best estimate of the expenditure required to settle the present obligation at the date of these Consolidated Financial Statements. The balances of ENRE penalties and discounts are adjusted in accordance with the regulatory framework applicable thereto and have been estimated based on the description made in Note 2.3. 6.1.8 Revenue recognition In the distribution of energy business segment, revenue is recognized on an accrual basis upon delivery to customers, which includes the estimated amount of unbilled distribution of electricity at the end of each year. We consider our accounting policy for the recognition of estimated revenue critical because it depends on the amount of electricity effectively delivered to customers which is valued on the basis of applicable tariffs. Unbilled revenue is classified as current trade receivables. In the oil and gas business segment, the fair value of the consideration receivable corresponding to revenues from gas sales to Distributors is recognized based on the volume of gas delivered and the price established by the SE (in accordance with applicable resolutions). 6.1.9 Oil and gas reserves Reserves include oil and gas volumes (in m3 of oil equivalent) that are economically producible, in the areas where the Company operates or has a (direct or indirect) interest and over which the Company has exploitation rights, including oil and gas volumes related to those service agreements under which the Company has no ownership rights on the reserves or the hydrocarbons obtained and those estimated to be produced for the contracting company under service contracts. There are numerous uncertainties in estimating proved reserves and future production profiles, development costs and prices, including several factors beyond the producer’s control. Reserve engineering is a subjective process of estimating underground accumulations involving a certain degree of uncertainty. Reserves estimates depend on the quality of the available engineering and geological data as of the estimation date and on the interpretation and judgment thereof. Periodic revisions and adjustments to the estimated oil and gas reserves and related future net cash flows may be necessary as a result of changes in a number of factors, including reservoir performance, new drilling, oil and gas prices, cost, technological advances, new geological or geophysical data, and other economic factors or at least once a year. The Company’s estimates of oil and gas reserves have been developed by the Company’s internal specialists, specifically petroleum engineers, and audited by independent specialists engaged by Company. The Company uses the information obtained from the calculation of reserves in the determination of depreciation of properties, plant and equipment used in oil and gas areas, as well as assessing the recoverability of these assets and including, when applicable, goodwill allocated to oil and gas segment (see Notes 4.6 to 4.9). 6.1.10 Environmental remediation The costs incurred to limit, neutralize or prevent environmental pollution are only capitalized if at least one of the following conditions is met: (a) such costs relate to improvements in safety; (b) the risk of environmental pollution is prevented or limited; or (c) the costs are incurred to prepare the assets for sale and the book value (which considers those costs) of such assets does not exceed their respective recoverable value. Liabilities related to future remediation costs are recorded when, on the basis of environmental assessments, such liabilities are probable to materialize, and costs can be reasonably estimated. The actual recognition and amount of these provisions are generally based on the Company’s commitment to an action plan, such as an approved remediation plan or the sale or disposal of an asset. The provision is recognized on the basis that a future remediation commitment will be required. The Company measures liabilities based on its best estimation of present value of future costs, using currently available technology and applying current environmental laws and regulations as well as the Company’s own internal environmental policies. 6.1.11 Business Combinations The acquisition method involves the measurement at fair value of the identifiable assets acquired and the liabilities assumed in the business combination at the acquisition date. For the purpose to determine the fair value of identifiable assets, the Company uses the valuation approach considered the most representative for each asset. These include: i) the income approach, through indirect cash flows (net present value of expected future cash flows) or through the multi-period excess earnings method, ii) the cost approach (replacement value of the good adjusted for loss due to physical deterioration, functional and economic obsolescence) and iii) the market approach through comparable transactions method. Likewise, in order to determine the fair value of liabilities assumed, the Company’s Management considers the probability of cash outflows that will be required for each contingency, and elaborates the estimates with assistance of legal advisors, based on the information available and taking into account the strategy of litigation and resolution / liquidation. Management critical judgment is required in selecting the approach to be used and estimating future cash flows. Actual cash flows and values may differ significantly from the expected future cash flows and related values obtained through the mentioned valuation techniques. 6.2 Financial risk management 6.2.1 Financial Risk Factors The Company’s activities are subject to several financial risks: market risk (including the exchange rate risk, the interest rate risk and the price risk), credit risk and liquidity risk. Financial risk management is encompassed within the Company’s global policies, there is an integrated risk management methodology, where the focus is not placed on the individual risks of the business units’ operations, but there is rather a wider perspective focused on monitoring risks affecting the whole portfolio. The Company’s risk management strategy seeks to achieve a balance between profitability targets and risk exposure levels. Financial risks are those derived from financial instruments the Company is exposed to during or at the closing of each fiscal year. The Company uses derivative instruments to hedge certain risks when it deems it necessary according to its risk management internal policies. Financial risk management is controlled by the Financial Department, which identifies, evaluates and covers financial risks. Risk management systems and policies are reviewed on a regular basis to reflect changes in market conditions and the Company’s activities, and have been applied consistently during the periods comprised in these Consolidated Financial Statements. This section includes a description of the main risks and uncertainties which may adversely affect the Company’s strategy, performance, operational results and financial position. 6.2.1.1 Market risks 6.2.1.1.1 Foreign exchange risk The Company’s results of operations and financial position are exposed to changes in the exchange rate between the Company’s functional currency, which is the U.S. dollar and other currencies, primarily with respect to the Argentine peso (which is the legal currency in Argentina). In some cases, the Company may use derivative financial instruments to mitigate the associated exchange rate risk. Taking into consideration that the Company, (excluding the Distribution segment’s balances), has a net asset position in Argentine pesos, as of December 31, 2019 the Company recorded net foreign exchange losses in the amount of U$S 5 million. The Company estimates that provided all other variables remain constant, a 10% revaluation/(devaluation) of U.S. dollar as compared to the Argentine peso would generate in absolute values a (decrease)/increase of U$S 11 million in the 2019 fiscal year’s income/(loss), before income tax. In the Distribution segment, the subsidiary Edenor collects revenues in pesos pursuant to regulated tariffs which are not indexed to the U.S. dollar, whereas a significant portion of its existing financial debt is denominated in U.S. dollar, which exposes Edenor to a risk of loss resulting from a devaluation of the Argentine peso. Edenor can manage this risk through the execution of forward contracts denominated in foreign currency. As of the year ended December 31, 2019, Edenor has not hedged its exposure to the U.S. dollar. Edenor does not currently hedge its exposure to currency risk. Therefore, any devaluation of the peso could significantly increase its debt service burden, which, in turn, could have a substantial adverse effect on its financial and cash position (including its ability to repay its Corporate Notes) and the results of its operations. During 2019, U.S. dollar currency appreciated by approximately 58.9% against the Argentine peso, from $ 37.70 in December 2018 to $ 59.89 in December 2019 and as of December 31, 2019 Edenor recorded net foreign exchange losses in the amount of U$S 70 million. Edenor estimates that provided all other variables remain constant, a 10% revaluation/(devaluation) of U.S. dollar as compared to the Argentine peso would generate in absolute values an increase/(decrease) of U$S 21 million in the 2019 fiscal year’s income/(loss), before income tax. The Group´s exposure to other foreign currency movements is not material. 6.2.1.1.2 Price risk The Company’s financial instruments are not significantly exposed to hydrocarbon international price risks on account of the current regulatory, economic, governmental and other policies in force, gas domestic prices are not directly affected in the short-term due to variations in the international market. Additionally, the Company’s investments in financial assets classified as “at fair value through profit or loss” are sensitive to the risk of changes in the market prices resulting from uncertainties as to the future value of such financial assets. The Company estimates that provided all other variables remain constant, a 10% revaluation/(devaluation) of each market price would generate the following increase/(decrease) in the 2019 fiscal year’s income/(loss), before income tax in relation to financial assets at fair value through profit and loss detailed in Note 12.2 to these Consolidated Financial Statements: Increase of the result for the year Financial assets 12.31.2019 12.31.2018 Shares 2 1 Government securities 11 30 Investment funds 24 11 Variation of the result of the year 37 42 6.2.1.1.3 Cash flow and fair value interest rate risk The management of the interest rate risk seeks to reduce financial costs and limit the Company’s exposure to interest rate increases. Indebtedness at variable rates exposes the Company to the interest rate risk on its cash flows due to the possible volatility they may experience. Indebtedness at fixed rates exposes the Company to the interest rate risk on the fair value of its liabilities, since they may be considerably higher than variable rates. As of December 31, 2019, on consolidated basis net of Corporate Bonds’ repurchase, only approximately 4% of the indebtedness was subject to variable interest rates. Most of the Company’s indebtedness subject to variable interest rates is denominated in U.S. dollar, based on Libor rate plus an applicable margin and a small portion is denominated in pesos accruing interest based on the private Badlar rate. The Company seeks to mitigate its interest-rate risk exposure through the analysis and evaluation of: (i) the different liquidity sources available in the financial and capital market, both domestic and (if available) international; (ii) interest rates alternatives (fixed or variable), currencies and terms available for companies in a similar sector, industry and risk than the Company; (iii) the availability, access and cost of interest-rate hedge agreements. On doing this, the Company evaluates the impact on profits or losses resulting from each strategy over the obligations representing the main interest-bearing positions. In the case of fixed rates and in view of the market’s current conditions, the Company considers that the risk of a significant decrease in interest rates is low and, therefore, does not foresee a substantial risk in its indebtedness at fixed rates. As of the date of issuance of these Consolidated Financial Statements, the Company is not exposed to a significant risk of variable interest rate increases since most of the financial debt is subject to fixed rate. The following chart shows the breakdown of the Company’s borrowings classified by interest rate and the currency in which they are denominated: 12.31.2019 12.31.2018 Fixed interest rate: Argentinian pesos 143 15 U.S dollar 1,687 1,861 Subtotal loans granted at a fixed interest rate 1,830 1,876 Floating interest rates: Argentinian pesos 10 108 U.S dollar 64 131 Subtotal loans granted at a floating interest rate 74 239 Non interest accrued U.S dollar 17 30 Argentinian pesos 26 32 Subtotal no interest accrued 43 62 Total borrowings 1,947 2,177 Based on the conducted simulations, and provided all other variables remain constant, a 10% increase/decrease in variable interest rates would generate the following (decrease)/increase in the 2019 fiscal year's year’s income/(loss), before income tax, of U$S 0.9 million. 6.2.1.2 Credit risk The Company establishes individual credit limits according to the limits defined by the Board of Directors and approved by the Financial Department based on internal or external ratings. The Company makes constant credit assessments on its customers’ financial capacity, which minimizes the potential risk for bad debt losses. The credit risk represents the exposure to possible losses resulting from the breach by commercial or financial counterparties of their obligations taken on with the Company. This risk stems mainly from economic and financial factors or a possible counterparty default. The credit risk is associated with the Company’s commercial activity through customer trade receivables, as well as available funds and deposits in banking and financial institutions. The Company, in its ordinary course of business and in accordance with its credit policies, grants credits to a large customer base, mainly large sectors of the industry, including petrochemical companies, natural gas distributors and electricity large users. As of December 31, 2019, the Company’s trade receivables, excluding Edenor, totaled U$S 299 million, out of which 97% are short-term receivables and the remaining 3% are classified as non-current. With the exception of CAMMESA, which represents approximately 56% of such trade receivables, the Company does not have a significant credit risk concentration, as this exposure is distributed among a large number of customers and other counterparties. The impossibility by CAMMESA to pay these receivables may have a substantially adverse effect on cash income and, consequently, on the result of operations and financial situation which, in turn, may adversely affect the Company’s repayment capacity. The credit risk of liquid funds and other financial investments is limited since the counterparties are high credit quality banking institutions. If there are no independent risk ratings, the risk control area evaluates the customer’s creditworthiness, based on past experiences and other factors. As of December 31, 2019, Edenor’s trade receivables totaled U$S 204 million. No single customer accounted for more than 10% of sales. The collectibility of trade receivables balances related to the Framework Agreement, which amount to U$S 0.2 million, is subject to such agreement’s being in force and the compliance with it terms. Edenor’s allowance for impairment of receivables is assessed based on the delinquent balance, which comprises all such debt arising from the bills for electricity consumption of small-demand (T1), medium-demand (T2), and large-demand (T3) customers that remain unpaid 7 working days after their first due dates. Edenor’s Management records an allowance applying to the delinquent balances of each customer category an uncollectibility rate that is determined according to each customer category based on the historical comparison of collections made. Additionally, the amounts related to the Framework Agreement are not considered within delinquent balances. Additionally, and faced with temporary and/or exceptional situations, Edenor’s Management may redefine the amount of the allowance, specifying and supporting the criteria used in all the cases. One of the significant items of Edenor’s delinquent balances is that related to the receivable amounts with Municipalities, in respect of which Edenor either applies different offsetting mechanisms against municipal taxes it collects on behalf of the municipalities, or implements debt refinancing plans, with the aim of reducing them. The inability to collect the accounts receivable in the future could have an adverse effect on Edenor’s results of operations and its financial position, which, in turn, could have an adverse effect on Edenor’s ability to repay loans, including payment of the Corporate Notes. The Company applies the simplified approach of IFRS 9 to measure the expected credit losses trade receivables and other receivables in accordance with the policy described in Note 4.10.4. The expected credit loss on trade receivables and financial assets as of December 31, 2019 and 2018 amounts to U$S 24 million and U$S 41 million, respectively (Note 12.3) and was determined based on credit loss rates calculated for days past due detailed below: 12.31.2019 Undue 30 days 60 days 90 days 120 days 150 days 180 days + 180 days Generation 0.10% 0.35% 1.99% 2.95% 4.03% 5.59% 9.79% 16.13% Oil and Gas 0.53% 1.49% 9.45% 18.03% 18.50% 18.81% 18.90% 18.92% Distribution of energy 3.00% 3.00% 8.00% 18.00% 20.00% 45.00% 72.00% 72.00% Petrochemicals 0.39% 0.73% 6.88% 16.66% 25.32% 29.59% 30.97% 43.05% Holding 1.85% 2.81% 6.84% 17.15% 26.77% 43.21% 49.89% 65.29% 12.31.2018 Undue 30 days 60 days 90 days 120 days 150 days 180 days + 180 days Generation 0.04% 0.09% 2.62% 3.39% 9.37% 13.56% 19.82% 28.88% Oil and Gas 2.20% 4.42% 11% 20.42% 42.85% 47.32% 49.20% 56.32% Distribution of energy 8.00% 8.00% 12.00% 19.00% 26.00% 59.00% 69.00% 69.00% Petrochemicals 0.03% 0.08% 1.41% 4.98% 11.52% 20.36% 24.91% 25.24% Holding 0.96% 1.25% 2.03% 2.85% 19.86% 26.41% 32.95% 32.97% In 2017 fiscal year, the calculation of the loss allowance for trade receivables and other receivables was assessed based on the incurred loss model, and considered the existence of objective evidence of default for the recognition of losses in the statement of comprehensive income. The expected credit loss as of January 1, 2018 (IFRS 9 amended adoption date) was determined based on credit loss rates calculated for days past due detailed below: Rates Undue 30 days 60 days 90 days 120 days 150 days 180 days +180 days Distribution of energy 8.00% 8.00% 12.00% 19.00% 26.00% 59.00% 69.00% 69.00% Rest of business segments 0.32% 0.93% 8.11% 19.61% 35.69% 45.63% 59.00% 63.01% The loss allowance for financial assets and other receivables adjustment as of January 1, 2018 for the application of the expected credit losses methodology to the loss allowance as of December 31, 2017, is detailed as follows: Financial assets Other receivables Loss allowance under IAS 39 as of 12.31.2017 22 7 Adjustment to the opening balance of retained earnings 4 (1) Loss allowance calculated under IFRS 9 as of 01.01.2018 26 6 The detailed adjustments to the opening balance in equity as a result of the application of IFRS 9, are disclosed net of tax effect for a total amount of U$S 2 million, with counterpart in retained earnings of U$S 1 million and in non-controlling interest of U$S 1 million. Finally, although cash, cash equivalents and financial assets are also subject to the impairment requirements of IFRS 9, the identified impairment loss is immaterial. Loss allowance evolution as of December 31, 2019, 2018 and 2017, is detailed in Note 12.3. The Company’s maximum exposure to credit risk is based on the book value of each financial asset in the Consolidated Financial Statements. On the basis of the change in an assumption, while holding all other assumptions constant, a 5% increase/(decrease) in the estimated trade receivables’ uncollectibility rate would result in U$S 1.5 million (decrease)/increase in 2019 fiscal year’s results, before income tax. 6.2.1.3 Liquidity risk The liquidity risk is associated with the Company’s capacity to finance its commitments and conduct its business plans with stable financial sources, as well as with the indebtedness level and the financial debt maturities profile. The cash flow projection is made by the Financial Department. The Company Management supervises updated projections on liquidity requirements to guarantee the sufficiency of cash and liquid financial instruments to meet operating and financing needs of the Company while keeping at all times a sufficient margin for unused credit facilities. In this way, the aim is that the Company does not breach indebtedness levels or the Covenants, if applicable, of any credit facility. Those projections take into consideration the Company’s debt financing plans, the meeting of the covenants and, if applicable, the external regulatory or legal requirements such as, for example, restrictions on the use of foreign currency. Additionally, the Financial Department regularly monitors the available credit for the Company, both in local and international, capital market as well as banking sector. Excess cash and balances above working capital management requirements are managed by the Company’s Treasury Department, which invests them in marketable securities, term deposits and mutual funds, selecting instruments having proper currencies and maturities, and an adequate credit quality and liquidity to provide a sufficient margin as determined in the previously mentioned projections. The Company keeps its sources of financing diversified between banks and the capital market, and it is exposed to the refinancing risk at maturity. It is worth to highlight that restrictions, both current and future new restrictions that could be imposed, affecting the access to the single and free-floating foreign exchange markets ingle market and free of change by companies could affect the Company's ability to pay debt’s capital and interest and additional transfers of funds abroad (including payments related to Corporate Bonds) or could otherwise affect the Company’s business and results of operations. The determination of the Company’s liquidity index for fiscal years ended December 31, 2019 and 2018 is detailed below: 12.31.2019 12.31.2018 Current assets 1,362 1,521 Current liabilities 854 1,182 Index 1.59 1.29 The following table includes an analysis of the Company financial liabilities, grouped according to their maturity dates and considering the period remaining until their contractual maturity date from the date of the Consolidated Financial Statements. Derivative financial liabilities are included in the analysis if their contractual maturities are essential for the understanding of the cash flow calendar. The amounts shown in the table are the contractual undiscounted cash flows. As of December 31, 2019 Trade and other payables (1) Borrowings Total Less than three months - 95 95 Three months to one year 454 188 642 One to two years 11 288 299 Two to five years 70 834 904 More than five years 9 1,233 1,242 Total 544 2,638 3,182 As of December 31, 2018 Trade and other payables Borrowings Total Less than three months 331 112 443 Three |
7. SEGMENT INFORMATION
7. SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of operating segments [abstract] | |
SEGMENT INFORMATION | The Company is a fully integrated power company in Argentina, which participates in the electricity and oil and gas value chains. Through its own activities, subsidiaries and share holdings in joint ventures, and based on the business nature, customer portfolio and risks involved, we were able to identify the following business segments: Electricity Generation Electricity Distribution Oil and Gas results corresponding to the divestment mentioned in Note 5.2.1 as discontinued operations Petrochemicals Holding and Other Business results corresponding to the divestment mentioned in Note 5.2.2 as discontinued operations The Company manages its operating segment based on its individual net results. Consolidated profit and loss information for the year ended December 31, 2019 Generation Distribution Oil and gas Petrochemicals Holding and others Eliminations Consolidated Revenue 819 1,502 174 321 20 - 2,836 Intersegment revenue - - 270 - - (270) - Cost of sales (466) (1,225) (313) (298) - 270 (2,032) Gross profit 353 277 131 23 20 - 804 Selling expenses (3) (122) (12) (9) (2) - (148) Administrative expenses (36) (65) (47) (4) (22) - (174) Exploration expenses - - (9) - - - (9) Other operating income 9 10 8 4 9 - 40 Other operating expenses (11) (43) (11) (9) (12) - (86) Impairment of property, plant and equipment (52) - (10) - - - (62) Share of profit from associates and joint ventures 13 - 21 - 67 - 101 Agreement on the regularization of obligations - 285 - - - - 285 Operating income 273 342 71 5 60 - 751 Gain on net monetary position, net - 187 - - - - 187 Finance income 51 20 18 1 7 (1) 96 Finance costs (82) (112) (94) (8) (4) 1 (299) Other financial results 86 (62) 84 18 (13) - 113 Financial results, net 55 33 8 11 (10) - 97 Profit before income tax 328 375 79 16 50 - 848 Income tax (80) (178) (16) (5) 231 - (48) Profit for the year 248 197 63 11 281 - 800 Depreciation and amortization 71 79 112 1 - - 263 Consolidated profit and loss information for the year ended December 31, 2019 Generation Distribution Oil and gas Petrochemicals Holding and others Eliminations Consolidated Total profit attributable to: Owners of the company 239 98 63 11 281 - 692 Non - controlling interest 9 99 - - - - 108 Consolidated statement of financial position as of December 31, 2019 Assets 1,472 1,480 1,261 136 1,527 (192) 5,684 Liabilities 1,226 1,792 465 122 (160) (170) 3,275 Additional consolidated information as of December 31, 2019 Increases in property, plant and equipment, intangibles assets and right-of-use assets 240 173 191 4 3 - 611 Net book values of property, plant and equipment 1,152 1,691 612 18 34 - 3,507 Consolidated profit and loss information for the year ended December 31, 2018 Generation Distribution Oil and gas Petrochemicals Holding and others Eliminations Consolidated Revenue 604 1,484 458 338 36 - 2,920 Intersegment revenue 2 - 63 - - (65) - Cost of sales (273) (1,136) (287) (334) - 63 (1,967) Gross profit (loss) 333 348 234 4 36 (2) 953 Selling expenses (1) (134) (19) (13) (4) - (171) Administrative expenses (41) (76) (56) (6) (27) - (206) Exploration expenses - - (1) - - - (1) Other operating income 11 9 141 5 15 - 181 Other operating expenses (17) (44) (114) (20) (6) 1 (200) Impairment of property, plant and equipment - - - (32) - - (32) Share of profit (loss) from joint ventures and associates (11) - 37 - 92 - 118 Income from the sale of associates - - 28 - - - 28 Operating income (loss) 274 103 250 (62) 106 (1) 670 Gain on net monetary position 233 226 107 49 12 2 629 Finance income 52 18 15 1 14 (1) 99 Finance costs (85) (132) (79) (15) (6) 1 (316) Other financial results (365) (50) (512) (39) 108 - (858) Financial results, net (165) 62 (469) (4) 128 2 (446) Profit (loss) before income tax 109 165 (219) (66) 234 1 224 Income tax (3) (49) 57 12 (34) - (17) Profit (loss) for the year from continuing operations 106 116 (162) (54) 200 1 207 Profit for the year from discontinued operations - - 49 - 31 - 80 Profit (loss) for the year 106 116 (113) (54) 231 1 287 Depreciation and amortization 66 69 92 6 1 - 234 Consolidated profit and loss information for the year ended December 31, 2018 Generation Distribution Oil and gas Petrochemicals Holding and others Eliminations Consolidated Total profit (loss) attributable to: Owners of the company 100 61 (115) (54) 231 1 224 Non - controlling interest 6 55 2 - - - 63 Consolidated statement of financial position as of December 31,2018 Assets 1,414 2,133 1,237 153 872 (137) 5,672 Liabilities 1,054 1,241 1,273 198 247 (136) 3,877 Additional consolidated information as of December 31, 2018 Increases in property, plant and equipment 235 227 192 4 7 - 665 Net book values of property, plant and equipment 1,036 1,657 554 15 54 - 3,316 Consolidated profit and loss information for the year ended December 31, 2017 Generation Distribution Oil and gas Petrochemicals Holding and others Eliminations Consolidated Revenue 351 1,050 443 314 17 - 2,175 Intersegment revenue 2 - 19 - - (21) - Cost of sales (195) (799) (310) (290) (1) 21 (1,574) Gross profit 158 251 152 24 16 - 601 Selling expenses (4) (95) (17) (12) - 1 (127) Administrative expenses (32) (66) (54) (16) (30) - (198) Exploration expenses - - (2) - - - (2) Other operating income 19 4 110 3 13 - 149 Other operating expenses (9) (33) (38) (10) (13) - (103) Share of profit (loss) from joint ventures and associates (2) - 1 - 49 - 48 Operating income (loss) 130 61 152 (11) 35 1 368 Gain (loss) on net monetary position 17 145 (18) 2 158 - 304 Finance income 39 12 6 - 7 (2) 62 Finance costs (69) (69) (78) (10) (8) 2 (232) Other financial results (34) 1 (93) (6) 32 - (100) Financial results, net (47) 89 (183) (14) 189 - 34 Profit (loss) before income tax 83 150 (31) (25) 224 1 402 Income tax (4) (12) 24 19 (1) - 26 Profit (loss) for the year from continuing operations 79 138 (7) (6) 223 1 428 (Loss) profit for the year from discontinued operations - - (35) - (16) 1 (50) Profit (loss) for the year 79 138 (42) (6) 207 2 378 Depreciation and amortization 54 58 87 4 2 - 205 Consolidated profit and loss information for the year ended December 31, 2017 Generation Distribution Oil and gas Petrochemicals Holding and others Eliminations Consolidated Total profit (loss) attributable to: Owners of the Company 75 73 (62) (6) 207 2 289 Non - controlling interest 4 65 20 - - - 89 Consolidated statement of financial position as of December 31,2017 Assets 1,115 1,972 1,154 141 1,475 (200) 5,657 Liabilities 333 1,166 444 94 1,850 (200) 3,687 Additional consolidated information as of December 31, 2017 Increases in property, plant and equipment 275 225 140 5 12 - 657 Accounting criteria used by the subsidiaries to measure results, assets and liabilities of the segments is consistent with that used in the Consolidated Financial Statements. Transactions between different segments are conducted under market conditions. Assets and liabilities are allocated based on the segment’s activity. |
8. REVENUE
8. REVENUE | 12 Months Ended |
Dec. 31, 2019 | |
Revenue [abstract] | |
REVENUE | 12.31.2019 12.31.2018 12.31.2017 Energy sales to the Spot Market 251 274 231 Energy sales by supply contracts 285 278 114 Fuel self-supply 281 51 4 Other sales 2 1 2 Generation sales subtotal 819 604 351 Energy sales 1,496 1,477 1,042 Right of use of poles 5 5 6 Connection and reconnection charges 1 2 2 Distribution of energy sales subtotal 1,502 1,484 1,050 Oil, gas and liquid sales 171 454 418 Other sales 3 4 25 Oil and gas sales subtotal 174 458 443 Technical assistance services and administartion sales 20 36 17 Holding and others subtotal 20 36 17 Petrochemicals sales 321 338 314 Petrochemicals sales subtotal 321 338 314 Total revenue 2,836 2,920 2,175 Revenue is recognized: 1) At a point in time, that is the effective delivery of the energy, the product or the provision of connection or reconnection services for a total amount of U$S 2,464 million, U$S 2,542 million and U$S 1,976 million as of December 31, 2019, 2018 and 2017, respectively; 2) Over time in case of power availability, technical assistance services and right to use poles for a total of U$S 372 million, U$S 378 million and U$S 199 million as of December 31, 2019, 2018 and 2017, respectively. |
9. COST OF SALES
9. COST OF SALES | 12 Months Ended |
Dec. 31, 2019 | |
Cost Of Sales | |
COST OF SALES | 12.31.2019 12.31.2018 12.31.2017 Inventories at the beginning of the year 137 113 164 Plus: Charges for the year Purchases of inventories, energy and gas 1,305 1,224 874 Salaries and social security charges 163 181 202 Benefits to employees 9 6 7 Accrual of defined benefit plans 7 4 7 Works contracts, fees and compensation for services 103 98 84 Depreciation of property, plant and equipment 232 206 195 Intangible assets amortization 7 7 1 Right-of-use assets amortization 2 - - Transport of energy 4 4 3 Transportation and freights 18 14 3 Consumption of materials 48 64 29 Penalties 25 56 11 Maintenance 27 24 18 Canons and royalties 59 74 56 Environmental control 3 5 3 Rental and insurance 21 13 11 Surveillance and security 6 6 6 Taxes, rates and contributions 4 5 3 Other 5 - 10 Subtotal 2,048 1,991 1,523 Gain on monetary position 1 - - Less: Inventories at the end of the year (153) (137) (113) Total cost of sales 2,032 1,967 1,574 |
10. OTHER ITEMS OF THE STATEMEN
10. OTHER ITEMS OF THE STATEMENT OF COMPREHENSIVE INCOME | 12 Months Ended |
Dec. 31, 2019 | |
Other Items Of Statement Of Comprehensive Income | |
OTHER ITEMS OF THE STATEMENT OF COMPREHENSIVE INCOME | 10.1 Selling expenses 12.31.2019 12.31.2018 12.31.2017 Salaries and social security charges 22 26 27 Benefits to employees 1 - - Accrual of defined benefit plans 1 - 1 Fees and compensation for services 29 30 26 Compensation agreements (1) 2 6 Depreciation of property, plant and equipment 9 9 3 Right-of-use assets amortization 1 - - Taxes, rates and contributions 25 33 28 Communications 6 7 8 Penalties 22 28 12 Net impairment losses on financial assets 21 28 11 Transport 9 6 4 Other 3 2 1 Total selling expenses 148 171 127 10.2 Administrative expenses 12.31.2019 12.31.2018 12.31.2017 Salaries and social security charges 62 81 77 Benefits to employees 8 5 5 Accrual of defined benefit plans 8 1 6 Fees and compensation for services 52 68 53 Compensation agreements - 3 20 Directors' and Syndicates' fees 7 5 4 Depreciation of property, plant and equipment 14 12 6 Consumption of materials 3 4 3 Maintenance 2 2 2 Transport and per diem 2 2 2 Rental and insurance 5 6 6 Surveillance and security 2 5 4 Taxes, rates and contributions 2 8 4 Communications 2 2 2 Right-of-use assets amortization 2 - - Institutional advertising and promotion - 1 2 Other 3 1 2 Total administrative expenses 174 206 198 10.3 Exploration expenses 12.31.2019 12.31.2018 12.31.2017 Geological and geophysical expenses 4 - 1 Decrease in unproductive wells 5 1 1 Total exploration expenses 9 1 2 10.4 Other operating income and expenses Other operating income Note 12.31.2019 12.31.2018 12.31.2017 Compensation for transaction agreement in Ecuador (1) - 99 - Recovery of doubtful accounts - - 4 Insurrance recovery 6 - - Natural Gas Surplus Injection Promotion Program 4.24.1.1 - 23 101 Commissions on municipal tax collections 2 2 1 Services to third parties 13 13 8 Profit for property, plant and equipment sale - 3 - Dividends received 1 1 1 Reversal of contingencies and taxes payables (2) 1 4 24 Other 17 36 10 Total other operating income 40 181 149 Other operating expenses Provision for contingencies (28) (35) (20) Decrease in property, plant and equipment (1) (6) (1) Allowance for tax credits (4) - (1) Tax on bank transactions (29) (30) (27) Cost for services provided to third parties (2) (2) (2) Compensation agreements - - (2) Donations and contributions (2) (2) (2) Institutional promotion (2) (3) (3) Extraordinary canon - (3) (14) Contingent consideration - - (8) Onerous contract (Ship or Pay) - (7) (4) Tax contingencies in Ecuador (1) - (69) - Other (18) (43) (19) Total other operating expenses (86) (200) (103) (1) Pursuant to Agreement executed on March 19, 2018 between the Republic of Ecuador and the Plaintiff Partners, including EcuadorTLC (see Note 5.6.1). Figures recorded as of December 31, 2018 arises from the Consolidated Financial Statements denominated in pesos in accordance with IAS 29, and was translated into U.S. dollars using the exchange rate as of that date. (2) In 2017, includes gains on releasing tax fines and reducing compensatory interests, related to benefits for the adhesion to the regularization regime (moratorium) (see Note 2.6.4). 10.5. Financial results 12.31.2019 12.31.2018 12.31.2017 Gain on monetary position, net 187 629 304 Finance income Commercial interest 61 58 43 Financial interest 22 34 14 Other interest 13 7 5 Total finance income 96 99 62 Finance cost Commercial interest (52) (78) (45) Fiscal interest (6) (8) (11) Financial interest (1) (227) (210) (162) Other interest (10) (15) (10) Other financial expenses (4) (5) (4) Total financial expenses (299) (316) (232) Other financial results Foreign currency exchange difference, net (75) (863) (156) Changes in the fair value of financial instruments 91 64 62 Gains (losses) from present value measurement 54 (74) (6) Other financial results of RDSA 2 13 - Results for the repurchase of corporate bonds 27 2 - Other financial results 14 - - Total other financial results 113 (858) (100) Total financial results, net 97 (446) 34 10.6 Income tax and minimum notional income tax The breakdown of income tax charge is: 12.31.2019 12.31.2018 12.31.2017 Current tax 70 39 55 Deferred tax (57) (19) (72) Other comprehensive income - 1 - Difference in the estimate of previous fiscal year income tax and the income tax statement 1 (4) (12) Direct charges for income tax - - 3 Optional tax revaluation 34 - - Total loss (gain) income tax 48 17 (26) Below is a reconciliation between income tax expense and the amount resulting from application of the tax rate on the income before taxes: 12.31.2019 12.31.2018 12.31.2017 Profit before income tax 848 224 402 Current tax rate 30% 30% 35% Result at the tax rate 254 67 141 Share of profit of associates and joint ventures (25) (3) (117) Non-taxable results (38) 7 (59) Effects of exchange differences and traslation effect of property, plant and equipment and intangible assets, net 93 - - Adjustment of valuation of property, plant and equipment and intangible assets (202) - - Gain (loss) on monetary position, net 17 (38) 66 Effect of tax rate change in deferred tax 37 (26) (21) Adjustment effect for tax inflation 129 - - Payment of optional tax revaluation 34 - - Special tax, revaluation of property, plant and equipment (169) - - Difference in the estimate of previous fiscal year income tax and the income tax statement (86) 4 (20) Deferred tax not previously recognized - 4 (31) Non-deductible cost - - 9 Non-deductible provisions - - 5 Other 4 2 1 Total loss (gain) income tax 48 17 (26) As of December 31, 2019 and 2018 consolidated accumulated tax losses amount to U$S 444 million and U$S 176 million, respectively, which may be offset, pursuant to the applicable tax laws, with tax profits corresponding to future fiscal years, at the tax rate that is estimated to apply Fiscal year generation Fiscal year prescription 12.31.2019 12.31.2018 2015 2020 - 3 2016 2021 4 18 2017 2022 3 4 2018 2023 38 27 2019 2024 66 - Recognized Tax loss-carryforwards 111 52 |
11. NON-FINANCIAL ASSETS AND LI
11. NON-FINANCIAL ASSETS AND LIABILITIES | 12 Months Ended |
Dec. 31, 2019 | |
Non-financial Assets And Liabilities | |
NON-FINANCIAL ASSETS AND LIABILITIES | 11.1. Property, plant and equipment Original values Type of good At the beginning Increases Impairment Transfers (1) Decreases Traslation effect At the end Land 22 - - - (8) - 14 Buildings 207 1 (8) 4 (1) (1) 202 Equipment and machinery 1,051 1 (90) 297 (5) - 1,254 High, medium and low voltage lines 1,010 3 - 72 (4) (32) 1,049 Substations 365 - - 14 - (12) 367 Transforming chamber and platforms 208 4 - 15 (1) (7) 219 Meters 209 1 - 23 - (7) 226 Wells 562 24 - 94 (8) - 672 Mining property 267 - (14) - - - 253 Vehicles 22 1 - - - (1) 22 Furniture and fixtures and software equipment 67 4 - 4 - (1) 74 Communication equipments 15 - - - - - 15 Materials and spare parts 32 19 - (14) - - 37 Distribution storage center 10 - - - (10) - - Petrochemical industrial complex 15 - - (1) - - 14 Work in progress 783 510 - (487) (3) (11) 792 Advances to suppliers 19 23 - (23) - (1) 18 Other goods 4 - - 2 - - 6 Total at 12.31.2019 4,868 591 (112) - (40) (73) 5,234 Total at 12.31.2018 4,317 665 (56) - (58) - 4,868 (1) Depreciation Net book values Type of good At the beginning Decreases Impairment For the year Traslation effect At the end At the end At 12.31.2018 Land - - - - - - 14 22 Buildings (74) 1 5 (7) - (75) 127 133 Equipment and machinery (384) 4 41 (72) - (411) 843 667 High, medium and low voltage lines (323) 4 - (35) 10 (344) 705 687 Substations (105) - - (13) 3 (115) 252 260 Transforming chamber and platforms (57) - - (8) 2 (63) 156 151 Meters (80) - - (10) 3 (87) 139 129 Wells (321) - - (65) - (386) 286 241 Mining property (119) - 4 (29) - (144) 109 148 Vehicles (16) - - (5) - (21) 1 6 Furniture and fixtures and software equipment (48) - - (9) - (57) 17 19 Communication equipments (10) - - - - (10) 5 5 Materials and spare parts (2) - - (1) - (3) 34 30 Distribution storage center (2) 3 - - - 1 1 8 Petrochemical industrial complex (7) - - (1) - (8) 6 8 Work in progress - - - - - - 792 783 Advances to suppliers - - - - - - 18 19 Other goods (4) - - - - (4) 2 - Total at 12.31.2019 (1,552) 12 50 (255) 18 (1,727) 3,507 Total at 12.31.2018 (1,358) 9 24 (227) - (1,552) 3,316 Edenor’s direct own costs capitalized in the book value of property, plant and equipment during the year ended December 31, 2019 and 2018 amounted to U$S 18.8 million and U$S 27.1 million respectively. Borrowing costs capitalized in the book value of property, plant and equipment during the year ended December 31, 2019 and 2018 amounted to U$S 17 million and U$S 8 million, respectively (see Note 12.5). 11.1.1 Impairment of Property, plant and equipment The Company regularly monitors the existence of events or changes in circumstances which may indicate that the book value of property, plant and equipment may not be recoverable in accordance with the policy described in Notes 4.9 and 6.1.1. In the Generation segment, a reduction in prices in the spot market was verified in 2019, which was deepened by the drop in the product’s excess demand resulting from the slowdown in the economic activity that impacted on the decrease in Energía Plus contracts (with higher prices) and, consequently, on the segment’s profitability margins. On the other hand, in the Distribution of Energy segment, Edenor has been affected by the enactment by the PEN of the new measures, mentioned in Notes 1.2 and 2.3.2. Furthermore, in the Oil & Gas segment, an oversupply in the natural gas market against the domestic demand was verified in 2019 as a consequence of higher production in unconventional blocks, which affected the production of gas thus generating a decrease in natural gas sale price in the domestic market. Additionally, in the Petrochemicals segment, a drop in margins was recorded in 2018 as a result of the sustained increase in operating costs, which has had a significant impact on the cost of the raw material processed in the Catalytic Reformer unit, as well as a decline in benchmark international prices. This in turn led to the recognition of an impairment loss in 2018. During 2019, the Company did not identify indications of reversal or decrease of the impairment loss recognized in 2018. Therefore, in view of the above-mentioned indications of impairment, the Company has determined the recoverable amount of the CGUs making up the Generation, Distribution of Energy and Oil & Gas segments as of December 31, 2019 and, for the Petrochemicals segment, as of December 31, 2018. The methodology used in the estimation of the recoverable amount consisted on calculating the present value of future net cash flows expected to be generated by the CGU, discounted with a rate reflecting the weighted average costs of the capital employed. Cash flows were prepared based on estimates on the future behavior of certain variables that are sensitive in the determination of the value in use, including the following: (i) reference prices for products; (ii) nature, timing, and modality of the electricity rate increases and/or recognition of cost adjustments in Edenor; (iii) demand projections per type of product; (iv) costs evolution; (v) investment needs appropriate to the service quality levels required by the Edenor´s regulatory authority, and; (vi) macroeconomic variables such as inflation and exchange rates, etc. 11.1.1.1 Generation segment As of December 31, 2019, the recoverability assessment of the Güemes, Piquirenda and Piedra Buena power plants, in the Generation segment, resulted in the recognition of impairment losses in the amount of U$S 52 million. The key assumptions used in the calculation of the recoverable amount as of December 31, 2019 consider: i) a reduction in the spot market prices consistently with Resolution SE No. 31/20, detailed in Note 23, and ii) a 11.0% WACC discount rate before tax. As regards projections, it is worth highlighting that the Management has considered: i) that the Energía Plus contracted volume remains allocated to Genelba to maximize efficiency in cost structure, and ii) the entry into effect of co-generation and closing to combined cycle projects under SEE Resolution No. 287/17 and the resulting dispatch reduction for less efficient power plants such as Güemes and Piedra Buena. The Company has conducted a sensitivity analysis of the segment’s recoverable amount regarding: i) the discount rate: a 1% increase or decrease in the discount rate would involve U$S 8 million impairment losses decrease or increase, respectively, and ii) the price of energy in the spot market: a 2% increase or decrease in the spot market price would involve a would involve U$S 8 million impairment losses increase or decrease, respectively. 11.1.1.2 Distribution of Energy segment The future increase in electricity rates used by Edenor to assess the recoverability of its non-financial long-lived assets on balances as of December 31, 2019 is based on the contractual rights held by Edenor deriving from the concession agreement. Furthermore, the new announcements made by government officials and the adopted measures described in Notes 1 and 2 to these Consolidated Financial Statements have been taken into account. Edenor has made its projections under the assumption that it will obtain better electricity rates in the next few years. However, given the complexity of the country’s macroeconomic scenario, Edenor’s Management is not in a position to ensure that the future performance of the assumptions used in making its projections will be in line with what it has estimated at the date of preparation of these Consolidated Financial Statements. In order to consider the estimation risk included in the projections of the aforementioned variables, Edenor has taken into consideration three alternative probability-weighted scenarios, which are detailed below: i. Pessimistic scenario: ii. Intermediate scenario: iii. Optimistic scenario: Edenor has assigned to these three scenarios the previously described probability of occurrence percentages based mainly on experience and giving consideration to the current economic and financial situation. The discount rate before tax (WACC) in pesos used by Edenor in all the scenarios varies for each year of the projection. For the first 5 years, the average of these rates is 41%. The main factors that could result in impairment charges in future periods are: i) a distortion in the nature, timing, and modality of the electricity rate increases and recognition of cost adjustments, ii) the development of the costs to be incurred, and iii) the investment needs appropriate to the service quality levels required by the regulatory authority in the RTI, among other factors. These factors have been taken into account in the aforementioned weight of scenarios. Due to the uncertainty inherent in these assumptions, Edenor estimates that any sensitivity analysis that considers changes in any of them taken individually could lead to distorting conclusions. 11.1.1.3 Oil & Gas segment As of December 31, 2019, the assessment of assets recoverability in the Oil & Gas segment, specifically in the Sierra Chata area, resulted in the recognition of impairment losses in the amount of U$S 10 million. The key assumptions used in the calculation of the recoverable amount as of December 31, 2019 consider i) a 2020 price of natural gas similar to the 2019 price, and a 20-25% gas price increase for 2021, price that is maintained in subsequent years considering a moderate development of unconventional resources (Vaca Muerta) tending to achieve gas domestic demand supply and a decrease in gas imports, and ii) a 14.1% WACC discount rate before tax. It is worth highlighting that the gas price is maintained in the projections, which in turn affects the estimated investment profile. The Company has conducted a sensitivity analysis of the segment’s recoverable amount regarding: i) the discount rate: a 1% increase or decrease in the discount rate would involve U$S 2 million impairment losses decrease or increase, respectively, and ii) the gas price: a 2% increase or decrease in the gas price would involve U$S 2 million impairment losses increase or decrease, respectively. Finally, it is important to highlight that as of December 31, 2019, the book value of the Oil and gas segment assets, including the goodwill assigned to the segment, does not exceed its recoverable value. 11.1.1.4 Petrochemicals segment As of December 31, 2018, the assessment of recoverability of the Petrochemicals segment’s assets resulted in the recognition of impairment losses for U$S 32 million. Key assumptions used in the calculation of the recoverable value as of December 31, 2018 are as follows: - Gross margin 7% - Discount rate before tax (WACC) 12.8% - International Average Styrene Price 1,138 U$S/tn - Average gasoline 87 octane price 2.06 U$S/gallon As regards these assumptions, the Company’s management has determined the estimated gross margin based on past yields and its market growth expectations (including projections of demand, prices and costs); the discount rate used reflects specific risks associated with the Petrochemicals segment. 11.2 Intangible assets Original values Type of good At the beginning Traslate Effect At the end Concession agreements 272 (2) 270 Goodwill 35 - 35 Intangibles identified in acquisitions of companies 7 - 7 Total at 12.31.2019 314 (2) 312 Total at 12.31.2018 314 - 314 Depreciation Type of good At the beginning For the year At the end Concession agreements (151) (8) (159) Intangibles identified in acquisitions of companies (2) - (2) Total at 12.31.2019 (153) (8) (161) Total at 12.31.2018 (146) (7) (153) Net book values Type of good At the end At 12.31.2018 Concession agreements 111 121 Goodwill 35 35 Intangibles identified in acquisitions of companies 5 5 Total at 12.31.2019 151 Total at 12.31.2018 161 11.3 Deferred tax assets and liabilities, income tax and minimum notional income tax The composition of the deferred tax assets and liabilities is as follows: 12.31.2018 Profit (loss) Gain on monetary position, net 12.31.2019 Tax loss carryforwards 52 59 - 111 Trade and other receivables 14 (1) - 13 Trade and other payables 52 (37) (2) 13 Salaries and social security payable 1 1 - 2 Defined benefit plans 9 (2) - 7 Provisions 32 7 - 39 Taxes payable 6 (6) - - Adjustment for tax inflation - 8 - 8 Other 2 (2) - - Deferred tax asset 168 27 (2) 193 Property, plant and equipment (334) (55) 5 (384) Adjustment for tax inflation - (99) - (99) Investments in companies (19) 11 - (8) Intangible assets (193) 175 5 (13) Inventory - (10) - (10) Trade and other receivables (9) 5 - (4) Financial assets at fair value through profit and loss (9) (2) - (11) Cash and cash equivalents - - - - Borrowings (3) 3 - - Taxes payable - (4) - (4) Other (6) 6 - - Deferred tax liabilities (573) 30 10 (533) 12.31.2017 Profit (loss) Other comprehensive income (loss) 12.31.2018 Tax los-carryforwards 64 (12) - 52 Trade and other receivables 4 10 - 14 Derivative financial instruments - - - - Financial assets at fair value through profit and loss - - - - Trade and other payables 46 6 - 52 Salaries and social security payable - 1 - 1 Defined benefit plans 11 (3) 1 9 Provisions 29 3 - 32 Taxes payable 7 (1) - 6 Liabilities associated to assets classified as held for sale 14 (14) - - Other 2 - - 2 Deferred tax asset 177 (10) 1 168 Property, plant and equipment (443) 108 - (335) Investments in companies (52) 35 (2) (19) Intangible assets (2) (190) - (192) Trade and other receivables (27) 17 - (10) Financial assets at fair value through profit and loss (3) (6) - (9) Borrowings (5) 2 - (3) Assets classified as held for sale (33) 33 - - Other (4) (1) - (5) Deferred tax liabilities (569) (2) (2) (573) Deferred tax assets and liabilities are offset in the following cases: a) when there is a legally enforceable right to offset tax assets and liabilities; and b) when deferred income tax charges are associated with the same fiscal authority. The following amounts, determined after their adequate offset, are disclosed in the statement of financial position: 12.31.2019 12.31.2018 Deferred tax asset 28 2 Deferred tax liabilities (368) (407) Deferred tax liabilities, net (340) (405) 11.4 Inventories 12.31.2019 12.31.2018 Materials and spare parts 95 94 Advances to suppliers 21 2 In process and finished products 37 40 Stock crude oil - 1 Total 153 137 11.5 Provisions 12.31.2019 12.31.2018 Non-Current Provisions for contingencies 123 125 Asset retirement obligation and dismantling of wind turbines 20 20 Environmental remediation 1 1 Other provisions 1 - 145 146 Current Provisions for contingencies 16 17 Asset retirement obligation and dismantling of wind turbines 2 2 Environmental remediation 2 4 Other provisions - - 20 23 12.31.2019 For contingencies Asset retirement obligation and dismantling of wind turbines For environmental remediation At the beginning of the year 142 22 5 Increases 41 3 - Decreases (10) - (2) Exchange differences on translation (4) - - Gain on monetary position, net (17) - - Reversal of unused amounts (13) (3) - At the end of the year 139 22 3 12.31.2018 For contingencies Asset retirement obligation For environmental remediation At the beginning of the year 141 42 6 Increases 106 37 6 Reclasification - (18) - Gain on monetary position, net (52) (18) (2) Decreases (23) (5) (5) Reversal of unused amounts (30) (16) - At the end of the year 142 22 5 12.31.2017 For contingencies Asset retirement obligation For environmental remediation At the beginning of the year 199 91 17 Increases 43 29 4 Reclasification (9) (1) 1 Reclasification to liabilities associated to assets classified as held for sale - (34) (7) Gain on monetary position, net (37) (18) (3) Decreases (39) (7) (6) Reversal of unused amounts (16) (18) - At the end of the year 141 42 6 11.5.1 Provision for Environmental remediation The Company is subject to extensive environmental regulations in Argentina. The Company’s management believes that its current operations are in compliance with applicable environmental requirements, as currently interpreted and enforced, including regulatory remediation commitments assumed. The Company undertakes environmental impact studies for new projects and investments and, to date, environmental requirements and restrictions imposed on these new projects have not had any material adverse impact on Pampa’s business. The Company has performed a sensitivity analysis relating to the discount rate. The 1% increase or decrease in the discount rate would not have a significant impact on the Company’s results of operations. 11.5.2 Asset retirement obligations Pursuant to the regulations in force in Argentina, where it develops its oil and gas exploration and production operations, the Company is under an obligation to incur costs associated with the plugging and abandonment of wells. Furthermore, pursuant to the associated usufruct agreements, the Company is under an obligation to decommission wind turbines in wind farms. The Company does not have legally restricted assets for the cancellation of these obligations. The Company has performed a sensitivity analysis relating to the discount rate. The 1% increase or decrease in the discount rate would not have a significant impact on the Company’s results of operations. 11.5.3 Provision for legal proceedings The Company (directly or indirectly through subsidiaries) is a party to several commercial, tax and labor proceedings and claims that arise in the ordinary course of its business. In determining a proper level of provision, the Company has considered its best estimate mainly with the assistance of legal and tax advisors. The determination of estimates may change in the future due to new developments or unknown facts at the time of evaluation of the provision. As a consequence, the adverse resolution of the evaluated proceedings and claims could exceed the established provision. The Company has recorded provisions for civil, commercial, administrative, labor, tax and customs complaints brought against the Company corresponding to atomized claims with individual unsubstantial amounts, as well as charges for judicial costs and expenses which, as of December 31, 2019, amount to U$S 89.3 million. We hereinafter detail the nature of significant proceedings for which provisions have been recorded as of December 31, 2019: - Relevant Customs Summary Proceedings - Gasoline Exports 11.6 Income tax and minimum notional income tax liability 12.31.2019 12.31.2018 Non-current Income tax, net of witholdings and advances 10 27 Total non current 10 27 Current Income tax, net of witholdings and advances 53 25 Minimum notional income tax, net of witholdings and advances - 4 Total current 53 29 11.6.1 Income tax Pampa and HIDISA and HINISA has assessed income tax for the fiscal period 2012 to 2018, respectively taking into consideration the application of the inflation adjustment mechanisms set forth in Title VI of the Income Tax Act, the update of Property, plant and equipment amortizations (Sections 83, 84 and 89), a cost restatement on account of the disposal of shares and mutual funds quotas (Sections 58, 61 and 89), and the update of intangible assets amortizations (Sections 81.c, 84 and 89, and Section 128 of its regulatory decree), to such effect using the IPIM published by the INDEC and the IPC of the Autonomous City of Buenos Aires for the November-December 2015 period, based on the similarity with the parameters put forward in the matter of “Candy S.A.” heard by the National Supreme Court of Justice, which on July 3, 2009 ruled for the application of the inflation adjustment mechanism. As a consequence of adherence to the tax revaluation optional regime detailed in Note 2.6.1.4, on March 29, 2019, Pampa withdrew from the actions promoted and on April 4, 2019, paid the income tax corresponding to the 2016 fiscal period, without considering the application of the fiscal inflation adjustment, plus related interests in an amount of U$S 10.8 million. As of December 31, 2019, HIDISA and HINISA hold a provision for the additional income tax liabilities assessable for fiscal years mentioned in case the inflation adjustment had not been deducted. This provision amounts to U$S 9.9 million including compensatory interest and was disclosed in the line “Income tax liability and minimum notional income tax non-current”. 11.7 Tax liabilities 12.31.2019 12.31.2018 Non-current Value added tax - 4 Sales tax 1 1 Payment plans - 2 Extraordinary Canon 3 7 Total non-current 4 14 Current Value added tax 38 21 Municipal, provincial and national contributions 3 3 Personal assets tax provision 3 - Payment plans 1 1 Municipal taxes 2 3 Tax withholdings to be deposited 6 9 Royalties 4 5 Extraordinary Canon 12 10 Other 3 2 Total current 72 54 11.7.1 Gross Income Tax The Company has differences in interpretation with Argentine Provincial Treasuries regarding certain taxes applicable to the Company’s activity. Particularly, HIDISA and HINISA have filed a note to the Province of Neuquén’s Revenue Department informing that they consider that the electric power generation activity conducted in that province should be covered by the provisions of Section 12 of Law No. 15,336. Thus, and pursuant to this section, revenues resulting from the generation of electric power are exempted from the provincial gross income tax. However, they hold a provision for gross income tax that would have applied. The Company’s management estimates that the resolution of these issues will not have a material adverse effect on its financial position or operating results. 11.8 Defined benefits plans The main characteristics of benefit plans granted to Company employees are detailed below. i. Pension and retirement benefits ii. Compensatory plan: As of December 31, 2019, 2018 and 2017, the most relevant actuarial information corresponding to the described benefit plans is the following: 12.31.2019 Present value of the obligation Fair value of plan assets Net liability at the end of the year Liabilities at the beginning 40 (5) 35 Items classified in profit or loss Current services cost 3 - 3 Cost for interest 15 (2) 13 Items classified in other comprehensive income Actuarial (gains) losses (2) - (2) Benefit payments (2) - (2) Gain on monetary position, net (18) 2 (16) At the end 36 (5) 31 12.31.2018 Present value of the obligation Present value of assets Net liability at the end of the year Liabilities at the beginning 47 (3) 44 Items classified in profit or loss Current services cost 2 - 2 Cost for interest 9 (1) 8 Past services cost (5) - (5) Items classified in other comprehensive income Actuarial losses (gains) 6 (2) 4 Benefit payments (3) - (3) Increase for subsidiries acquisition (16) 1 (15) At the end 40 (5) 35 12.31.2017 Present value of the obligation Present value of assets Net liability at the end of the year Liabilities at the beginning 58 (8) 50 Items classified in profit or loss Current services cost 3 - 3 Cost for interest 12 (1) 11 Past services cost 1 - 1 Items classified in other comprehensive income Actuarial losses (gains) (1) - (1) Exchange differences on translation 1 (1) - Benefit payments (2) - (2) Reclasification to liabilities associated to assets classified as hed for sale (11) 4 (7) Gain (loss) on net monetary position (14) 3 (11) At the end 47 (3) 44 As of December 31, 2019, the breakdown of net liabilities per type of plan is as follows: a) U$S 21 million correspond to the Pension and Retirement Benefits Plan and b) U$S 10 million correspond to the Compensatory Plan. As of December 31, 2018, net liability by type of plan, is as follows: a) U$S 24 million corresponding to Pension and Retirement Benefits Plan and b) U$S 11 million corresponding to Compensatory Plan. As of December 31, 2017, net liability by type of plan, is as follows: a) U$S 33 million corresponding to Pension and Retirement Benefits Plan and b) U$S 11 million corresponding to Compensatory Plan. Estimated expected benefits payments for the next ten years are shown below. The amounts in the table represent the undiscounted cash flows and therefore do not reconcile to the obligations recorded at the end of the year. 12.31.2019 Less than one year 4 One to two years 3 Two to three years 2 Three to four years 2 Four to five years 2 Six to ten years 11 Significant actuarial assumptions used were as follows: 12.31.2019 12.31.2018 12.31.2017 Discount rate 5% 5% 5% Salaries increase 1% 1% 1% Average inflation 50% 27% 21% 12.31.2019 Discount rate: 4% 39 Obligation 3 Variation 10% Discount rate: 6% 33 Obligation (3) Variation (9%) Salaries increase: 0% 34 Obligation (2) Variation (5%) Salaries increase: 2% 38 Obligation 2 Variation 6% The sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. Therefore, the presented analysis may not be representative of the actual change in the defined benefit obligation. The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period. 11.9 Salaries and social security payable 12.31.2019 12.31.2018 Non-current Seniority - based bonus 3 4 Early retirements payable 1 - Total non-current 4 4 Current Salaries and social security contributions 22 24 Provision for vacations 17 19 Provision for gratifications and annual bonus for efficiency 26 29 Total current 65 72 |
12. FINANCIAL ASSETS AND LIABIL
12. FINANCIAL ASSETS AND LIABILITIES | 12 Months Ended |
Dec. 31, 2019 | |
Financial Assets And Liabilities | |
FINANCIAL ASSETS AND LIABILITIES | 12.1 Financial assets at amortized cost 12.31.2019 12.31.2018 Non-current Public securities (1) 18 - Total non-current 18 - Current Time deposits - 35 Public securities (1) 54 - Total current 54 35 (1) The public securities were received in accordance with the mechanism set forth by SGE Resolution No. 54/19 for the settlement of receivables under Natural Gas Surplus Injection Promotion Programs. See Note 2.4.3.1. 12.2 Financial assets at fair value through profit and loss 12.31.2019 12.31.2018 Non-current Shares 11 11 Total non-current 11 11 Current Government securities 113 298 Shares 8 1 Investment funds 244 106 Total current 365 405 12.3 T Note 12.31.2019 12.31.2018 Non-Current CAMMESA Receivable (1) - 70 Other 8 23 Trade receivables, net 8 93 Non-Current Tax credits 3 13 Related parties 17 53 49 Prepaid expenses 1 1 Financial credit - 1 Receivable for sale of property, plant and equipment - 3 Natural Gas Surplus Injection Promotion Program (2) - 71 Credit with RDSA 20 35 20 Allowance for doubtful accounts (35) - Other 14 2 Other receivables, net 71 160 Total non-current 79 253 Current Note 12.31.2019 12.31.2018 Receivables from energy distribution sales 226 223 Receivables from MAT 17 27 CAMMESA 168 131 CAMMESA Receivable (1) - 15 Receivables from oil and gas sales (3) 48 78 Receivables from refinery and distribution sales - 6 Receivables from petrochemistry sales 54 67 Related parties 17 6 10 Government of the PBA and CABA by Social Rate 4 - Other 10 4 Allowance for doubtful accounts (33) (34) Trade receivables, net 500 527 Tax credits 10 27 Advances to suppliers - 2 Related parties 17 8 5 Prepaid expenses 2 2 Receivables for non-electrical activities 11 14 Financial credit 5 6 Guarantee deposits 5 13 Natural Gas Surplus Injection Promotion Program (2) - 71 Insurance to recover - 6 Expenses to be recovered 10 11 Credits for the sale of property, plant and equipment 1 21 Credit with RDSA 20 1 - Other 14 6 Allowance for other receivables (6) (8) Other receivables, net 61 176 Total current 561 703 (1) CAMMESA receivables were settled in pursuant to the Agreement for the Regularization and Settlement of Receivables with the WEM (see Note 2.1.7). (2) Receivables under the Natural Gas Surplus Injection Promotion Programs were settled through the delivery of public securities pursuant to the mechanism set forth by SGE Resolution No. 54/19 (see Note 2.4.3.1). (3) Including U$S 14.6 million corresponding to the receivables with gas distributors pursuant to the procedure set forth by PEN Executive Order No. 1,053/18 and regulated by ENARGAS Resolution No. 466/19 (see Note 2.4.3.2). Due to the short-term nature of trade and other receivables, its book value is not considered to differ from its fair value. For non-current trade and other receivables, fair values do not significantly differ from book values. The movements in the allowance for the impairment of trade receivables are as follows: 12.31.2019 12.31.2018 12.31.2017 At the beginning 34 26 21 Allowance for impairment 23 34 13 Utilizations (13) (10) (3) Reversal of unused amounts (2) (1) - Exchange differences on translation (1) - - Reclasification to assets held for sale - - (5) Gain on monetary position, net (8) (15) (5) At the end of the year 33 34 21 The movements in the allowance for the impairment of other receivables are as follows: 12.31.2019 12.31.2018 12.31.2017 At the beginning 8 6 10 Allowance for impairment 1 7 1 Gain on monetary position, net (1) (3) - Decreases - - (1) Reversal of unused amounts (2) (2) (5) At the end of the year 6 8 5 12.4 Cash and cash equivalents 12.31.2019 12.31.2018 Banks 57 83 Investment funds 4 - Time deposits 164 158 Total 225 241 12.5 Borrowings Non-Current Note 12.31.2019 12.31.2018 Financial borrowings 161 258 Corporate bonds (1) 1,603 1,457 CAMMESA financing - 120 1,764 1,835 Current Financial borrowings 137 313 Corporate bonds 32 25 CAMMESA financing - 3 Related parties 17 14 1 183 342 Total 1,947 2,177 (1) Net of the repurchase of Corporate Bonds of Pampa Energía for a nominal value of U$S 81 million and U$S 9 million and the repurchase of Edenor’s Corporate Bonds for a nominal value of U$S 29 million and U$S 10 million as of December 31, 2019 and 2018, respectively. As of December 31, 2019 and 2018, the fair values of the Company’s Corporate Bonds amount approximately to U$S 1,436 million and U$S 1,300 million, respectively. Such values were calculated on the basis of the determined market price of the Company’s corporate notes at the end of each year (fair value level 1 and 2). The carrying amounts of short-term borrowings approximate their fair value due to their short-term maturity. The other long-term borrowings were measured at amortized cost, which does not differ significantly from its fair value. The movements in the borrowings are as follows: Note 12.31.2019 12.31.2018 12.31.2017 At the beginning 2,177 1,683 1,269 Proceeds from borrowings 556 245 1,250 Payment of borrowings (550) (240) (733) Accrued interest 185 179 143 Payment of borrowings' interests (148) (133) (108) Net foreign currency exchange difference 50 1,244 227 Results for the repurchase of corporate bonds 12.5.2 (27) (2) - Costs capitalized in property, plant and equipment 11.1 17 8 14 Decrease through offsetting with trade receivables (135) - - Gain on monetary position, net (88) (795) (379) Repurchase and redemption of corporate bonds (91) (13) (1) Other financial results 1 1 1 At the end of the year 1,947 2,177 1,683 As of the date of issuance of these Consolidated Financial Statements, the Company is in compliance with the covenants established in its indebtedness 12.5.1 Details of borrowings: Type of instrument Company Currency Residual value Interest Rate Expiration Book value as of 12.31.2019 Corporate bonds 2022 CB Edenor U$S 166 Fixed 9.75% 2022 139 Class E CB PAMPA ARS 575 Variable Badlar Nov-20 10 Class 1 CB PAMPA U$S 687 Fixed 7.50% Ene-27 698 T Series CB PAMPA U$S 487 Fixed 7.38% Jul-23 497 Serie 3 CB (1) PAMPA U$S 293 Fixed 9.13% Abr-29 291 1,635 Regulatory Thrid parties: PAMPA U$S 84 Fixed Between 4.25% and 7.65% Jan-2020 to 88 PAMPA U$S 39 Fixed and variable 4.21% + Libor May-2024 39 PAMPA ARS 7,775 Fixed Between 40% and 44.14% Apr-2021 to 146 273 Related parties: PAMPA U$S 13 Fixed 6.0% 2020 14 Financial loans Edenor U$S 1,885 Variable Libor + 4.27% Oct-20 25 25 1,947 (1) On June 10, 2019, the Company issued Series 3 Corporate Bonds for a face value of U$S 300 million. These corporate bonds accrue interest at a fixed rate of 9.125% payable semi-annually, and the principal will be payable in a single installment upon maturity, in April 2029. Type of instrument Company Currency Residual value Interest Rate Expiration Book value as of 12.31.2018 Corporate bonds 2022 CB Edenor U$S 166 Fixed 9.75% 2022 170 Class 4 CB (1) PAMPA U$S 34 Fixed 6.25% Oct 20 34 Class E CB PAMPA ARS 607 Fixed Badlar Nov-20 16 T Series CB PAMPA U$S 500 Fixed 7.38% Jul-23 753 Class 1 CB PAMPA U$S 747 Fixed 7.50% Jan-27 510 1,483 Regulatory CAMMESA 2014 Agreement PAMPA ARS 855 Variable CAMMESA (2) 57 CAMMESA Mapro PAMPA ARS 174 Variable CAMMESA (2) 7 CAMMESA Mapro CPB ARS 1,085 Variable CAMMESA (2) 59 123 Financial loans PAMPA U$S 17,116 Fixed Between 3.6% and 6.8% Feb-2019 to May-2021 459 PAMPA U$S 1,746 Fixed and variable 6% + Libor May-2024 46 PAMPA ARS 550 Fixed 22.25% Sep-2019 to Oct-2019 15 Edenor U$S 1,885 Variable Libor + 4.27% Oct-20 51 571 2,177 (1) On July 12, 2019, the Company provided for the early redemption of Series 4 Corporate Bonds for a value of U$S 34 million. (2) Regulatory financing was settled under the Agreement for the Regularization and Settlement of Receivables with the WEM (see Note 2.1.7). 12.5.2 Acquisition of own Corporate Bonds As of the closing of fiscal year 2019, Pampa held in its portfolio: Series T Corporate Bonds maturing in 2023 for a face value of U$S 13.5 million, repurchased at an average clean price of U$S 74.55 per face value of U$S 100; Series 1 Corporate Bonds maturing in 2027 for a face value of U$S 63.03 million, repurchased at an average clean price of U$S 74.27 per face value of U$S 100; Series 3 Corporate Bonds for U$S 7.33 million, repurchased at an average clean price of U$S 78.63 per face value of U$S 100. During fiscal years ended December 31, 2019 and 2018, the Company and its subsidiaries purchased and/or redeemed own or different subsidiaries’ Corporate Bonds at their respective market values for a total face value of U$S 91 million and U$S 13.2 million, respectively. As a result of these repurchase and/or redemption transactions, the Company reported consolidated losses for U$S 27 million and U$S 2 million in the fiscal years ended December 31, 2019 and 2018, respectively, which are disclosed in the “Results from the repurchase of corporate bonds” item under Other financial results (see Note 10.5). 12.5.3 Edenor - Global Program for the Issuance of Corporate Bonds On August 8, 2019, Edenor’s General Ordinary Shareholders’ Meeting approved the creation of Edenor’s Global Program for the Issuance of Corporate Bonds effective for a term of five years and for a maximum outstanding amount of U$S 750 million, or its equivalent value in other currencies. 12.5.4 Financial loans In 2019, Pampa paid off Banking debt (including pre-export finance facilities) for U$S 420 million and $ 550 million, and took on new debt for U$S 25 million and $ 8,349 million. As of December 31, 2019, approximately 60% of the bank debt is denominated in pesos. As of December 31, 2019, Pampa’s short-term principal maturities amounted to U$S 92 million and $ 575.2 million, whereas Edenor’s short-term maturities amounted to U$S 25 million. After the closing of the fiscal year, Pampa repaid financing at maturity for a total amount of U$S 25 million. 12.6. Trade and other payables Non-Current 12.31.2019 12.31.2018 Customer contributions 3 3 Funding contributions for substations - 1 Customer guarantees 4 4 Trade payables 7 8 ENRE Penalties and discounts 64 138 Loans (mutuums) with CAMMESA - 61 Compensation agreements 7 7 Liability with FOTAE - 5 Payment agreement with ENRE - 1 Lease liability 12 - Other - - Other payables 83 212 Total non-current 90 220 Current Note 12.31.2019 12.31.2018 Suppliers 212 250 CAMMESA 155 316 Customer contributions 1 - Discounts to customers - 1 Customer advances 7 6 Related parties 17 8 6 Other - 1 Trade payables 383 580 ENRE Penalties and discounts 57 49 Related parties 17 5 - Compensation agreements 3 13 Payment agreements with ENRE 1 2 Other creditors - 8 Lease liability 4 - Other 1 5 Other payables 71 77 Total current 454 657 Due to the short-term nature of the trade payables and other payables, their carrying amount is considered to be the same as their fair value, except non-current customer contributions. The fair values of non-current customer contributions as of December 31, 2019 and 2018 amount to U$S 0.8 million and U$S 2.9 million, respectively. The fair values are determined based on estimated discounted cash flows in accordance with a market rate for this type of transactions. This fair value is classified as level 3. The book value of the compensation agreements approximates their fair value given the valuation characteristics (Note 4.17). 12.7 Financial instruments by category The following chart presents financial instruments by category: As of December 31, 2019 Financial assets/liabilities at amortized cost Financial assets/liabilities at fair value through profit and losss Subtotal financial assets/liabilities Non financial assets/liabilities Total Assets Trade receivables and other receivables 622 4 626 14 640 Financial assets at fair value through profit and loss Government securities - 113 113 - 113 Shares - 19 19 - 19 Investment funds - 244 244 - 244 Derivative financial instruments - 4 4 - 4 Cash and cash equivalents 221 4 225 - 225 Total 843 388 1,231 14 1,245 Liabilities Trade and other liabilities 408 7 415 129 544 Borrowings 1,947 - 1,947 - 1,947 Derivative financial instruments - 3 3 - 3 Total 2,355 10 2,365 129 2,494 As of December 31, 2018 Financial assets/liabilities at amortized cost Financial assets/liabilities at fair value through profit and losss Subtotal financial assets/liabilities Non financial assets/liabilities Total Assets Trade receivables and other receivables 909 3 912 44 956 Financial assets at amortized cost Government securities 35 - 35 - 35 Financial assets at fair value through profit and loss Government securities - 298 298 - 298 Shares - 12 12 - 12 Investment funds - 106 106 - 106 Cash and cash equivalents 241 - 241 - 241 Total 1,185 419 1,604 44 1,648 Liabilities Trade and other liabilities 610 15 625 252 877 Borrowings 2,177 - 2,177 - 2,177 Instrumentos financieros derivados - 1 1 - 1 Total 2,787 16 2,803 252 3,055 The categories of financial instruments have been determined according to IFRS 9. The income, expenses, gains and losses derived from each of the financial instrument categories are indicated below: As of December 31, 2019 Financial assets/liabilities at amortized cost Financial assets/liabilities at fair value through profit and losss Subtotal financial assets/liabilities Non Financial assets/ liabilities Total Interest income 93 3 96 - 96 Interest expense (275) - (275) (20) (295) Foreign exchange, net (92) 14 (78) 3 (75) Results from financial instruments at fair value - 91 91 - 91 Gains (losses) from present value measurement 54 - 54 - 54 Other financial results 37 - 37 2 39 Total (183) 108 (75) (15) (90) As of December 31, 2018 Financial assets/liabilities at amortized cost Financial assets/liabilities at fair value through profit and losss Subtotal financial assets/liabilities Non Financial assets/ liabilities Total Interest income 94 5 99 - 99 Interest expense (289) - (289) (22) (311) Foreign exchange, net (865) 86 (779) (84) (863) Results from financial instruments at fair value - 64 64 - 64 Gains (losses) from present value measurement (74) - (74) - (74) Other financial results 12 - 12 (2) 10 Total (1,122) 155 (967) (108) (1,075) As of December 31, 2017 Financial assets/liabilities at amortized cost Financial assets/liabilities at fair value through profit and losss Subtotal financial assets/liabilities Non Financial assets/ liabilities Total Interest income 55 7 62 - 62 Interest expense (217) - (217) (11) (228) Foreign exchange, net (191) 49 (142) (14) (156) Results from financial instruments at fair value - 62 62 - 62 Gains (losses) from present value measurement (6) - (6) - (6) Other financial results (2) - (2) (2) (4) Total (361) 118 (243) (27) (270) 12.8 Fair value of financial Instruments The Company classifies the fair value measurements of financial instruments using a fair value hierarchy, which reflects the relevance of the variables used to perform those measurements. The fair value hierarchy has the following levels: - Level 1: quoted prices (not adjusted) for identical assets or liabilities in active markets. - Level 2: data different from the quoted prices included in Level 1 observable for the asset or liability, either directly (i.e. prices) or indirectly (i.e. derived from prices). - Level 3: Asset or liability data based on information that cannot be observed in the market (i.e., unobservable data). The following table shows the Company’s financial assets and liabilities measured at fair value as of December 31, 2019 and 2018: As of Dectember 31, 2019 Level 1 Level 2 Level 3 Total Assets Financial assets at fair value through profit and losss Government securities 113 - - 113 Shares 8 - 11 19 Investment funds 244 - - 244 Cash and cash equivalents Investment funds 4 - - 4 Derivative financial instruments - 4 - 4 Other receivables 4 - - 4 Total assets 373 4 11 388 Liabilities Derivative financial instruments - 3 - 3 Total liabilities - 3 - 3 As of December 31, 2018 Level 1 Level 2 Level 3 Total Assets Financial assets at fair value through profit and losss Government securities 298 - - 298 Trust 1 - 11 12 Investment funds 106 - - 106 Other receivables 3 - - 3 Total assets 408 - 11 419 Liabilities Derivative financial instruments - 1 - 1 Total liabilities - 1 - 1 The value of the financial instruments negotiated in active markets is based on the market quoted prices as of the date of these Consolidated Financial Statements. A market is considered active when the quoted prices are regularly available through a stock exchange, broker, sector-specific institution or regulatory body, and those prices reflect regular and current market transactions between parties that act in conditions of mutual independence. The market quotation price used for the financial assets held by the Company is the current offer price. These instruments are included in Level 1. The fair value of financial instruments that are not negotiated in active markets is determined using valuation techniques. These valuation techniques maximize the use of market observable information, when available, and rely as little as possible on specific estimates of the Company. If all significant variables to establish the fair value of a financial instrument can be observed, the instrument is included in Level 2. If one or more variables used to determine the fair value cannot be observed in the market, the financial instrument is included in Level 3. The techniques used for the measurement of assets at fair value with changes in income, classified as Level 2 and 3, are detailed below: - Derivative Financial Instruments: calculated from variations between market prices at the closing date of the year, and the amount at the time of the contract. - Shares: they were determined based on Income approach through the Indirect Cash Flow method (net present value of expected future cash flows) and the discount rates used were estimated taking the WAAC rate as a parameter. |
13. EQUITY COMPONENTS
13. EQUITY COMPONENTS | 12 Months Ended |
Dec. 31, 2019 | |
Equity Components | |
EQUITY COMPONENTS | 13.1 Share capital and reserves 13.1.1 Share capital On October 2, 2018, the Company’s Extraordinary General Meeting of Shareholders approved a capital reduction through the cancellation of 182,820,250 treasury shares it held as a result of the Share Repurchase Programs, the Company’s capital stock thus decreasing from 2,082,690,514 shares to 1,899,870,264 shares (1,874,434,580 of which are outstanding shares and 25,435,684 treasury shares). This reduction was registered with the IGJ on November 22, 2018. Furthermore, on January 9, 2019, the CNV granted the partial cancellation of the public offering regarding the reduced shares. On October 1, 2019, the Company’s Extraordinary General Meeting of Shareholders resolved to reduce the capital stock through the cancellation of own shares held in treasury as of the last business day prior to the holding of the meeting which had been acquired under the Share Repurchase Programs dated June 22, 2018, and March 27 and August 12, 2019. In this sense, the capital stock was reduced through the cancellation of 151,997,025 treasury shares, the capital stock thus decreasing from 1,899,870,264 shares to 1,747,873,239 shares. This reduction was registered with the IGJ on November 20, 2019, the partial cancellation by the CNV of the public offering regarding the reduced shares still pending as of December 31, 2019. As of December 31, 2019, treasury shares amount to 4.05% of the capital stock, of which 65,725,450 shares correspond to the Share Repurchase Program and 5,035,746, to the Stock-based Compensation Plan for officers and other key staff. 13.1.1.1 Publicly traded shares The Company’s shares are listed for trading on Buenos Aires Stock Exchange, forming part of the Merval Index. Also, on August 5, 2009, the SEC authorized the Company for the registration of ADSs representing 25 common shares each. On October 9, 2009, the Company started to market its ADSs on the NYSE. The listing of the ADSs with the NYSE is part of the Company’s strategic plan to increase its liquidity and the tradable volume of its shares. 13.1.1.2 Company Share Repurchase Programs In view of the fact that the Company’s share price does not reflect either the value or the economic reality its assets currently or potentially have, this being detrimental to the interests of the Company’s shareholders, and taking into consideration the Company’s strong cash position and fund availability, the Company’s Board of Directors has approved the share repurchase programs that are detailed below, in all cases taking into consideration that treasury shares may not cumulatively exceed the 10% of the share capital: 1. April 27, 2018 Share repurchase program: for a maximum amount of U$S 200 million and for an initial term of 120 calendar days; extended on June 22, 2018 for an additional maximum amount of up to U$S 200 million for an initial term of 120 calendar days. Shares may be purchased for a maximum price of the amount, in Argentine pesos, equivalent to U$S 2.40 per common share and U$S 60 per ADR, for the initial program, and U$S 2.20 per common share and U$S 55 per ADR for the extension. 2. March 27, 2019 Share repurchase program: for a maximum amount of U$S 100 million and for an initial term of 120 calendar days. Shares may be purchased for a maximum price of the amount, in Argentine pesos, equivalent to U$S 1.04 per common share and of U$S 26 per ADR. On June 12, 2019, this program was suspended as the listing of the Company’s shares and ADRs had reached values exceeding the repurchase cap set. 3. August 12, 2019 Share repurchase program: for a maximum amount of U$S 50 million and for an initial term of 120 calendar days. Shares may be acquired up to a maximum price of the equivalent in pesos of U$S 1 per common share and U$S 25 per ADR. The maximum amount was extended to U$S 65 million on August 30, 2019. 4. November 8, 2019 Share repurchase program: for a maximum amount of U$S 50 million and for an initial term of 120 calendar days. Shares may be acquired up to a maximum price of the equivalent in pesos of U$S 0.58 per common share and U$S 14.50 per ADR. As part of the Share Repurchase Program, during fiscal years ended December 31, 2019 and 2018, the Company acquired the equivalent of 197,612,900 and 202,929,825 own shares for an amount of $ 7,070 million and $ 12,275 million, respectively. 13.1.1.3 Stock-based Compensation Plan During the fiscal years ended December 31, 2018 and 2017, the Company repurchased 3,000,000 and 2,500,000 shares, respectively, corresponding to the Stock-based Compensation Plan benefiting officers and other key staff for an amount of $ 260 million and $ 126 million, respectively. As of December 31, 2019, the Company delivered the equivalent of 464,254 own shares as payments under this plan (see Note 19.2). 13.1.2 Other reserves 13.1.2.1 Acquisition of own ADRs by Edenor On April 8, 2019, Edenor’s Board of Directors approved a new Share Repurchase Program for a maximum amount of $ 800 million and an initial term of 120 calendar days as from April 9, 2019. Under this program, treasury shares may not together exceed the 10% of the capital stock cap, and may be acquired up to a maximum price of the equivalent in pesos of U$S 23 per ADR or the amount in pesos equivalent to U$S 1.15 per common share. In its meeting held on June 12, 2019, Edenor’s Board of Directors resolved to early terminate the term timely stipulated for the acquisition of own shares. As of December 31, 2019, Edenor holds 31,380,871 Series B treasury shares, of which 8,269,740 have been acquired in this fiscal year, for a total amount of $ 599 million restated at constant currency. 13.1.2.2 Acquisition of Edenor’s ADRs by the Company During the fiscal years ended December 31, 2019 and 2018, the Company acquired a total number of 1,179,491 and 346,270 Edenor’s ADRs, each one equivalent to 20 Series B common shares, at an acquisition cost of U$S 6 million and U$S 9 million, respectively. 13.2 Earnings per share 13.2.1 Basic Basic earnings per share are calculated by dividing the result attributable to the Company’s equity interest holders by the weighted average of outstanding common shares during the year. 13.2.2 Diluted Diluted earnings per share are calculated by adjusting the weighted average of outstanding common shares to reflect the conversion of all dilutive potential common shares. Potential common shares will be deemed dilutive only when their conversion into common shares may reduce the earnings per share or increase losses per share of the continuing business. Potential common shares will be deemed anti-dilutive when their conversion into common shares may result in an increase in the earnings per share or a decrease in the losses per share of the continuing operations. The calculation of diluted earnings per share does not entail a conversion, the exercise or another issuance of shares which may have an anti-dilutive effect on the losses per share, or where the option exercise price is higher than the average price of ordinary shares during the period, no dilutive effect is recorded, being the diluted earnings per share equal to the basic. As of December 31, 2019, 2018 and 2017, the Company does not hold any significant potential dilutive shares, therefore there are no differences with the basic earning per share. 12.31.2019 12.31.2018 12.31.2017 Earning for continuing operations attributable to the equity holders of the Company 692 146 341 Weighted average amount of outstanding shares 48 52 51 Basic and diluted earnings per share from continuing operations 14.42 2.81 6.69 Earning (loss) for discontinued operations attributable to the equity holders of the Company - 78 (55) Weighted average amount of outstanding shares 48 52 51 Basic and diluted earnings (loss) per share from discontinued operations - 1.50 (1.07) Total earning attributable to the equity holders of the Company 692 224 286 Weighted average amount of outstanding shares 48 52 51 Basic and diluted earnings per share 14.42 4.31 5.61 13.3 p 13.3.1 Dividends Pursuant to Law No. 27,430, enacted in December 2017, and the suspension provided for by Law No. 27,541 (Note 2.6.1.2), dividends distributed to individuals, undivided estates or beneficiaries residing abroad, derived from profits generated during fiscal years beginning on or after January 1, 2018 through December 31, 2021, are subject to a 7% withholding tax. The distribution of dividends is made based on the Company’s Stand-Alone Financial Statements. |
14. STATEMENT OF CASH FLOWS' CO
14. STATEMENT OF CASH FLOWS' COMPLEMENTARY INFORMATION | 12 Months Ended |
Dec. 31, 2019 | |
Statement Of Cash Flows Complementary Information | |
STATEMENT OF CASH FLOWS' COMPLEMENTARY INFORMATION | 14.1 Adjustments to reconcile net profit (loss) to cash flows generated by operating activities Note 12.31.2019 12.31.2018 12.31.2017 Income tax 10.6 48 17 (26) Accrued interest 202 219 166 Depreciations and amortizations 9, 10.1 and 10.2 267 234 205 Constitution of allowances, net 10.4 and 10.1 25 28 12 Constitution (recovery) of provisions, net 10.4 27 31 (4) Share of profit from joint ventures and associates 5.3.2 (101) (118) (48) Income from the sale of companies 5.1 - (28) - Accrual of defined benefit plans 9, 10.1 and 10.2 16 5 14 Net exchange differences 10.5 75 863 156 Result from measurement at present value 10.5 (54) 74 6 Changes in the fair value of financial instruments 10.5 (91) (64) (62) Results from property, plant and equipment sale and decreases 10.4 and 10.3 5 4 1 Results for the repurchase of corporate bonds 10.5 (27) (2) - Impairment of property, plant and equipment 11.1.1 62 32 - Dividends received 10.4 (1) (1) (1) Compensation agreements 10.1 and 10.2 (1) 5 26 Result from the sale of shareholdings in companies, property, plant and equipment 5.2.3 - (44) - Agreement on the regularization of obligations (285) - - Other financial results of RDSA (2) (13) - Onerous contract (Ship or pay) 10.4 - 7 4 Gain on monetary position, net 10.5 (187) (629) (304) Other (8) 2 6 (30) 622 151 14.2 Changes in operating assets and liabilities 12.31.2019 12.31.2018 12.31.2017 Increase (decrease) in trade receivables and other receivables 17 (172) (65) Increase in inventories (28) (18) (11) Increase in trade payables and other payables 97 22 10 Increase in deferred income - 2 - Decrease in salaries and social security payable 15 14 (1) Decrease in defined benefit plans (2) (3) (3) (Decrease) increase in tax payables 20 35 (26) (Increase) decrease in provisions (9) (60) (48) Income tax and minimum notional income tax paid (87) (49) (56) (Payments) proceeds from derivative financial instruments, net 9 (24) 23 Total changes in operating assets and liabilities 32 (253) (177) 14.3 Significant non-cash transactions 12.31.2019 12.31.2018 12.31.2017 Acquisition of property, plant and equipment through an increase in trade payables (45) 17 (103) Borrowing costs capitalized in property, plant and equipment (17) (7) (16) Decreases of property, plant and equipment through an increase in other receivables - 12 - Agreement on the regularization of obligations 285 - - Increase in asset retirement obligation provision through an increase in property, plant and equipment 1 34 (2) Constitution of guarantee of derivative financial instruments, net through the delivery of financial assets at fair value through profit or loss 3 (22) 19 Cancellation of other credits for capital contributions in associates (17) - - Compensation of investments at a cost cost through the transfer of other credits (126) - - Loan compensation through the transfer of sales credits 135 - - Increase of right-of-use assets through an increase in other debts 20 - - Significant non-cash transactions from discontinued operations : Credit pending collection for sale of property, plant and equipment - - 15 |
15. CONTINGENT LIABILITIES AND
15. CONTINGENT LIABILITIES AND ASSETS | 12 Months Ended |
Dec. 31, 2019 | |
Contingent Liabilities And Assets | |
CONTINGENT LIABILITIES AND ASSETS | We hereinafter detail the nature of significant proceedings as of December 31, 2019, not considered as probable by the Company based on the opinion of the Company’s internal and external counselors. 15.1 Labor Claim – Compensatory Plan The Company faces several legal proceedings associated with the Defined Benefit Plan “Compensatory Plan” (see Note 11.8). We hereinafter describe the nature of currently-pending labor claims: - Claims by former employees not covered by the plan, seeking their inclusion. - Claims by former employees seeking a compensation under the plan on account of terminations due to changes in shareholding control. - Claims on considering that the index (IPC) used to update the plan benefits are ineffective to keep their “constant value”. - Claims on an alleged underfunding of the plan upon the elimination of the Company’s contributions based on earnings. 15.2 Tax claim - Tax on Liquid Fuels and Natural Gas: The AFIP filed a claim in the amount of $ 54 million against the Company for an alleged omission in the payment of Taxes on Liquid Fuels and Natural Gas during fiscal periods January 2006 through August 2011, plus compensatory interest and a penalty of $ 38 million for such omission. The tax entity supports its claim on the allegation that the tax benefit granted to sales to areas declared exempt by the tax law has been misappropriated. The proceeding is currently being heard before the Federal Tax Court, and the evidentiary period has been completed. - Income tax refund: The Company, HIDISA, HINISA and CPB have filed several tax refund claims in the amount of $ 1,169 million for overpaid income taxes taking into considerations the effects of the inflation adjustment mechanism. On December 7, 2017, CPB collected the amount claimed for the 2002 period, which amounts to $ 4 million plus interest. However, upon joining the tax revaluation regime detailed in Note 2.6.1.4, on March 29, 2019 and April 3, 2019, Pampa and CPB, respectively, formally presented their waiver to the rights invoked in the mentioned tax refund claims in the amounts of $ 1,095 million and $ 1.6 million, respectively. - Minimum notional income tax refund: The Company and the former CTLL have filed several refund claims before the AFIP on account of the minimum notional income tax for fiscal periods 2008 and 2009 requesting the refund of $ 25 million, including the refund of payments timely made and the release of the offsetting payment made against several tax credits. As AFIP didn’t answer the claim, the Company and the former CTLL brought a tax refund claim before the competent National First-Instance Administrative Litigation Court. On August 25, 2016 the former CTLL obtained a favorable ruling by the Chamber of Appeals, which upheld the first-instance decision sustaining the refund claim; however, the payment has not been collected as of the date hereof, and the Company is conducting the relevant proceedings in this respect. The Company considers it has a high probability of obtaining a favorable final and conclusive ruling. 15.3 Environmental claims - The Association of Land Owners of Patagonia (ASSUPA) has brought a complaint for an indefinite amount against the Company and other companies seeking the restoration of the environment to the state prior to the exploration, exploitation, production, storage and transportation of hydrocarbon works conducted by the plaintiffs and the prevention of alleged future environmental impacts on certain areas in the Austral Basin. The National Government and the Provinces of Santa Cruz and Tierra del Fuego have been summoned as third parties. The proceeding is at the complaint answer stage. - ASSUPA has instituted a complaint before the CSJN against 10 companies, including the Company. The National Government and the Provinces of Buenos Aires, La Pampa, Mendoza, Neuquén and Río Negro have been summoned as third parties. The main claim seeks that the plaintiffs should be ordered to redress the alleged environmental damage caused by the hydrocarbon activity developed in the Neuquina Basin and to set up the environmental restoration fund provided for by section 22 of the General Environmental Law. Subsidiarily, and in case restoration is not possible, it seeks the redress of the allegedly sustained collective damages for an amount estimated at U$S 547 million based on a PDUN report. The proceeding is in the complaint answer stage. - Beatriz Mendoza and other 16 plaintiffs brought a complaint before the CSJN against the National Government, the Province of Buenos Aires, the Government of the Autonomous City of Buenos Aires and 44 companies, including the Company, conducting industrial activities along the Matanza-Riachuelo River Basin. The plaintiffs seek compensation for alleged damages sustained as a result of an alleged environmental impact, its cessation, the environmental recomposition and redress, for an estimated amount of U$S 500 million for the financing of the Matanza-Riachuelo River Basin Environmental Management Plan aiming at the restoration of the basin. The proceeding is in the third-party summoning stage. - Inertis S.A. Has filed a complaint against the Company for alleged damage to the environment in a lot owned by this company as a result of the activities conducted by the Dock Sud plant seeking the redress of alleged damages for a nominal amount estimated at $ 1 million and U$S 1 million, or the difference between the value of the allegedly affected lot and its valuation. The proceeding is in the evidentiary stage. - Fundación SurfRider Argentina has requested the performance of preliminary proceedings on account of alleged indications of environmental damage in the City of Mar del Plata. The plaintiff seeks the recomposition of the alleged environmental damage having collective impact, or the compensation for the alleged damages caused by all companies owning gas stations in the coastal area of the City of Mar del Plata for an alleged fuel leakage from gas stations’ underground storage tanks into the water, soil and marine system. The Foundation estimates damages in the amount of $ 200 million. The proceeding is pending the resolution of the admissibility of CSJN’s jurisdiction. - A group of neighbors of the City of Bahía Blanca instituted a complaint before the provincial courts of this city for alleged environmental damage having collective impact against the companies of the petrochemical complex, Consorcio de Gestión Del Puerto de Bahía Blanca and the Province of Buenos Aires. The plaintiffs seek the redress of collective moral injury (estimated at $ 52 million), the cessation of the alleged damage to the estuary of Bahía Blanca, and a comprehensive restoration to its previous state. In case this is not possible, the plaintiffs subsidiarily seek damages, the beneficiary of which would be the Environmental Compensation Fund. They also request a prohibition to install new industrial activities in the area and the development of a new and efficient industrial waste collection, disposal and treatment system. The proceeding is in the sentence stage. - Some neighbors of the Dock Sud area brought a complaint against 14 oil companies, including the Company, petrochemical companies and waste incineration plants located in the Dock Sud Petrochemical Complex for an alleged damage to the environment and alleged individual damage to their goods, health and morale. The CSJN maintained its jurisdiction in the environmental issue and the Court’s jurisdiction regarding the compensation for the alleged damages. - A neighbor of the Province of Salta owning a lot where a joint venture made up of the plaintiffs (the Company and other companies) conducted hydrocarbon activities seeks environmental protection and restoration for alleged damage caused by hydrocarbon prospecting, exploration and/or exploitation activities or, alternatively, a compensation in case such environmental restoration is not possible. The Province of Salta has been summoned as a third party. The proceeding is in the complaint answer stage and with a negative conflict of jurisdiction. - Owners of a lot in the town of Garín, Province of Buenos Aires, seek the performance of preliminary proceedings for alleged indications of damage to the environment in their place of residence which would result from an alleged leakage from the adjacent gas station under the Company’s branding. Preliminary measures are being conducted in this proceeding. - Neighbors of the Province of Neuquén brought a proceeding against the Company for alleged environmental damage resulting from the hydrocarbon exploration, exploitation, transportation and well abandonment activities in which that plaintiff has been taking part. Should this not be feasible, they claim a compensation for alleged damages to support the Environmental Restoration Fund. Additionally, they request the redress of alleged moral damages to be allocated to the Environmental Restoration Fund. The proceeding is in the lawsuit integration stage. - The Company initiated a legal claim against the Province of La Pampa requesting the annulment and revocation of administrative acts through which said Province through its Undersecretary of Hydrocarbons and Mining and its Undersecretariat of Environment, intends that the Company carries out definitive abandonment of 13 hydrocarbon wells located within the Jagüel de los Machos Area that were inactive by the time the concession belonged to the company -September 2015-, as well as the presentation of a plan for the remediation of certain environmental liabilities. It is worth clarifying that an environmental audit was carried out at the time of the reversal of the hydrocarbon area, and the deviations observed therein are currently corrected. - Plaintiffs María Elena Baya de Rudd and David Rudd have filed a complaint against the Company, other companies and the joint venture made up by them for the repair of alleged damages caused in the Estancia Laguna Esperanza lot owned by them and the remediation of alleged environmental damage caused by the exploitation and abandonment of oil wells in the lot. A sentence was issued in the appellate proceeding. We have filed a federal extraordinary appeal against that sentence, and have jointly requested with the plaintiff the suspension of the procedural time limits in order to negotiate a settlement, which suspension was granted. - Plaintiff Martinez Lidia and other three plaintiffs claim financial compensation for alleged damage to their health and property caused by the alleged environmental affectation sustained as a result of living next to Puerto General San Martin petrochemical plant (Rosario-Santa Fe). The proceeding is currently in the evidentiary stage. - A neighbor of the Province of Buenos Aires brought a complaint against the Company seeking the removal of three fuel storage tanks and pumps and the remediation and restoration of the soils where such tanks are located on account of an alleged environmental affectation. The proceeding has been filed and answered. 15.4 Civil and Commercial Claims - The “Consumidores Financieros Asociación Civil Para Su Defensa” claim the nominal amount of U$S 3,650 million as compensation for damages, Pampa, Petrolera Pampa S.A. and certain Pampa directors in office during 2016 being co-plaintiffs together with Petroleo Brasileiro S.A. A complaint has been brought against Petrobras Brasil for the depreciation of the share quotation value as a result of the “lava jato operation” and the so-called “Petrolao”, and the plaintiffs claim Pampa, Petrolera Pampa S.A. and the directors’ joint and several liability alleging the acquisition of indirect control in Petrobras Argentina S.A. may have thwarted the enforcement of a possible judgment favorable to the plaintiff (for up to the amount of the price paid by Pampa for the acquisition of control over Petrobras Argentina S.A.). The plaintiff is appealing the Arbitration Court’s decision declaring the dismissal of the main claim upon the failure to pay the arbitration fee. - The Company was notified of the institution of a collective action in the City of Rio de Janeiro, Brazil, by a lawyer of that nationality, Felipe Machado Caldeira, alleging that Petrobras Brasil has not conducted Petrobras Argentina’s sales process pursuant to a competitive bidding process in accordance with Brazilian laws applicable to mixed public-private firms in Brazil, for a nominal amount of R$ 1,000 million. In this proceeding, no specific accusation against Pampa has been filed. The proceeding is currently suspended in the integration and complaint answer stage. Upon the death of the plaintiff and the Public Prosecution Service’s statement that it is not interested in pursuing the complaint, a legal notice was published so that any citizen may express its interest in pursuing it. - Messrs. Candoni, Giannasi, Pinasco and Torriani brought arbitration complaints against the Company before the Buenos Aires Stock Exchange’s Arbitration Court seeking to challenge the price and tender offer for the merger through absorption of Petrobras Argentina S.A. into Pampa Energía S.A. for a nominal amount of $ 148 million. The complaints have been joined. The Court issued a partial award upholding the challenge under the capital markets law used by the plaintiff to dispute the exchange ratio used in the merger and dismissed the Company’s position, which stated that the proper course of action would be to challenge the shareholders’ meeting pursuant to the Business Organizations Law. The Company filed an appeal against this partial award and filed a motion for appeal and nullity which will be resolved by the Chamber of Appeals in Commercial Matters. - Fees associated with the injunction granted in favor of Oil Combustibles: Oil Combustibles’ attorneys claimed an increase in their fees assessed by the first-instance judge and ratified by the Chamber of Appeals of Rosario. The Supreme Court of Santa Fe resolved to annul the Camber’s decision and ordered that a new judgment should be passed. A motion for clarification was filed against this judgment before the Supreme Court of Justice, as well as an extraordinary appeal before the CSJN. A settlement was reached and all pending motions were dismissed. - Consumidores Financieros Asociación Civil para su Defensa, claimes Edenor: i) the reimbursement of the VAT percentage paid on the illegally “widened” taxable basis due to the incorporation of the National Electrical Energy Fund that distribution companies, the defendants, had not paid this tax when CAMMESA invoiced them the electricity purchased for distribution purposes, ii) the reimbursement of part of the administrative surcharge on “second due date”, in those cases in which payment was made within the time period authorized for such second deadline (14 days) but without distinguishing the effective day of payment, and iii) the application of the “borrowing rate” in case of customer delay in complying with payment obligation, in accordance with the provisions of Law No. 26,361. The Federal Government, the AFIP and the ENRE are summoned as third-party defendants. These proceedings have been joined to those mentioned below. Without prejudice thereto, in the framework of the record of the proceedings, the case has been brought to trial. - Asociación de Defensa de derechos de clientes y consumidores (ADDUC) requested that the Company be ordered by the Court to reduce or mitigate the default or late payment interest rates charged to customers who pay their bills after the first due date, inasmuch as they violate section 31 of Law N° 24,240, ordering both the non-application of pacts or accords that stipulate the interest rates that are being applied to the users of electricity –their unconstitutional nature– as well as the reimbursement of interest amounts illegally collected from the customers of the service from August 15, 2008 through the date on which the defendant complies with the order to reduce interest. It is also requested that the VAT and any other taxes charged on the portion of the surcharge illegally collected be reimbursed. These proceedings have been joined to those mentioned above and have been brought to trial. Prior to requesting that evidence be produced, it was ordered that the records be sent to the Tax Representative, in order for the latter to pronounce on the motion to dismiss for lack of standing to sue filed by Edenor. Once the records were sent back to the court hearing the case, the aforementioned motion was rejected. The Company appealed against the rejection of the motion in a timely manner. We hereinafter detail the nature of significant legal proceedings brought by the Company as of December 31, 2019 where the related inflows of economic benefits are estimated to be probable by the Company. 15.5 Administrative claims - CTLL filed a contentious administrative complaint against the National Government for contractual breach during the January 2016-July 2017 period. CTLL claims that CAMMESA’s decision should be reversed regarding the renewal and recognition of costs associated with natural gas supply agreements, and that, susbsidiarily, sustained damages for an estimated amount of U$S 26.6 million should be redressed. Later, the complaint was expanded to include the contractual breach as of October 2018, for an estimated amount of U$S 22.1 million. As of the date hereof the total claimed amounts to U$S 48.7 million. - Upon the determination of the expiration of the Veta Escondida area concession granted by the Province of Neuquén, the Company filed a declaratory judgment action to achieve certainty under the original jurisdiction of the Federal Supreme Court of Justice pursuant to section 322 of the Federal Code of Civil and Commercial Procedure. Both parties agreed to suspend the proceeding and settle a solution. Negotiations are currently in progress, and terms have been suspended for 20-day periods renewable until settling the conflict. 15.6 Civil and commercial claims - Edenor seeks to obtain the judicial annulment of the ENRE’s Resolution 32/11 that provided Edenor to: i) be fined in the amount of $ 750 thousands due to its failure to comply with the obligations arising from Section 25, sub-sections a, f and g, of the Concession Agreement and Section 27 of Law No. 24,065, ii) be fined in the amount of $ 375 thousands due to its failure to comply with the obligations arising from Section 25 of the Concession Agreement and ENRE Resolution No. 905/99 and iii) be ordered to pay customers as compensation for the power cuts suffered the following amounts: $ 180 to each small-demand residential customer (T1R) who suffered power cuts that lasted more than 12 continuous hours, $ 350 to those who suffered power cuts that lasted more than 24 continuous hours, and $ 450 to those who suffered power cuts that lasted more than 48 continuous hours. The course of these proceedings is currently suspended due to the fact that an “Agreement of parties” has been entered into with the ENRE. In view of the time elapsed since Edenor and the ENRE agreed to suspend the procedural time-limits, the court has requested that the parties express their stance on the issue. Based on the terms of the Agreement on the Regularization of Obligations entered into on May 10, 2019 by and between Edenor and the Federal Government, this action should be abandoned, with each party bearing its own court costs, as agreed in such Agreement. At the closing date of the year ended December 31, 2019, Edenor made a provision for principal and interest accrued for an amount of U$S 1.5 million within the Non-current other liabilities account. Based on that which has been mentioned above, and once the regulatory authority has given its consent, such provision should no longer be recorded. - Edenor’s purpose is to sue for breach of contract due to the Federal Government’s failure to perform in accordance with the terms of the “Agreement on the Renegotiation of the Concession Agreement” (“Acta Acuerdo de Renegociación del Contrato de Concesion” – the “Adjustment Agreement”) entered into with the Company in 2006, and for damages caused as a result of such breach. On September 16, 2019, in the framework of the judicial record of the motion to litigate in forma pauperis, Edenor filed a brief regarding the abandonment of the action and waiver of right, requesting at the same time that each party be held liable for its own court costs. The representatives of the Federal Government gave their consent to the terms of the brief. Taking account of the brief, on September 24, the Court terminated the proceedings. Furthermore, in the main proceedings, Edenor, with the Federal Government’s consent, filed a brief, also on September 16, regarding the abandonment of the action and waiver of right, declaring that the concepts dealt with in the proceedings amount to $ 6,900 million; therefore, payment of court fees, which amount to $207 million was incorporated therein. The records were sent to the Tax Authorities for their approval, having attached the breakdown of the amounts comprising the reconciled principal be submitted. |
16. INVESTMENT COMMITMENTS
16. INVESTMENT COMMITMENTS | 12 Months Ended |
Dec. 31, 2019 | |
Investment Commitments | |
INVESTMENT COMMITMENTS | 16.1 New generation projects Under the National Government’s call for the expansion of the generation offer, the Company participates in the following thermal generation projects: 16.1.1 PEPE II and PEPE III wind farms On May 10, 2019, CAMMESA declared the commercial commissioning of PEPE II (Pampa Energía wind farm) for a 50.4 MW power capacity and PEPE III (de la Bahía wind farm) for a 28.8 MW power capacity, the commercial commissioning for a 50.4 MW power capacity of the latter being completed on June 10, 2019. PEPE II is located in an area adjacent to Mario Cebreiro Wind Farm, in the area known as Corti, 20 kilometers from the City of Bahía Blanca. PEPE III is located in Coronel Rosales, near the City of Bahía Blanca. Both projects called for an investment of U$S 130 million and have an approximate 100.8 MW joint installed capacity. The production of both wind farms is sold under agreements between private parties pursuant to the Term Market of Electric Power from Renewable Sources (MATER) Regime within the framework of SEE Resolution No. 281/17. Non-contracted energy will be remunerated according to the spot market remuneration (see Notes 2 and 23). 16.1.2 PEPE IV wind farm The Company, as assignee of the rights under the PEPE IV project, requested to CAMMESA an extension of the term for the commercial commissioning of the wind farm, as well as its relocation. The request was authorized by the SGE and, to make it effective, CAMMESA asked the Company to meet certain requirements, including making several disbursements and increasing the originally granted guarantee pursuant to SGE Resolution No. 230/19. However, as a result of events occurred during 2019, including the devaluation of the peso and the increase in interest rates, which have resulted in a growing macroeconomic instability, the Company requested an extension of the term to meet the above-mentioned requirements in order to evaluate the feasibility of the project under the new conditions, as well as to negotiate changes proposed by work contractors and equipment suppliers. In this context, and based on a thorough evaluation of the renewable projects in progress, on September 11, 2019 the SSERyEE instructed CAMMESA to temporarily suspend the claims for non-compliance, and demanded the Company to extend the validity of the U$S 12.5 million guarantee for a term of 180 days. On October 4, 2019, the Company complied with the requested extension. On October 9, 2019, the SSERyEE canceled the suspension. On October 30, 2019, CAMMESA served on the Company a formal demand requiring certain payments associated with the postponement of the commercial commissioning of the project and its relocation under penalty of enforcing the guarantee. The Company rejected the demand served by CAMMESA awaiting SGE’s consideration of the extension request, and on December 9, 2019 it entered into an agreement with CAMMESA establishing a negotiation process to be developed until January 31, 2020 inclusive, during which CAMMESA should suspend the enforcement of the guarantee. The agreement term was extended until February 29, 2020. On the other hand, on September 2, 2019, the assignment of all CTB’s rights, receivables and debts under the project was formalized for a price of U$S 0.1 million, which were offset with receivables CTB held against the Company on account of loans and commercial debt. 16.1.3 Genelba Thermal Power Plant On June 12, 2019, CAMMESA declared the commercial commissioning of Genelba power plant’s fourth gas turbine for a power capacity of up to 187.7 MW. Furthermore, CAMMESA enabled the 19 MW repowering of the existing gas turbine unit’s power capacity, as of June 1, 2019.These units are part of Genelba Plus’ closing to combined cycle project, which will include the placing in service of a steam turbine. The Project was selected under SEE Resolution No. 926-E/17 within the framework of the “Call for the Execution of New Co-generation and Closing to Combined Cycles Projects” established by SEE Resolution No. 287-E/17. Upon the commercial commissioning of the closing to combined cycle, the Wholesale Power Purchase Agreement executed with CAMMESA for a maximum committed capacity of 377 MW and a term of 15 years will enter into effect. The total investment for the project is estimated at U$S 350 million. After the completion of the project, Genelba Power Plant will have two combined cycles with a total installed capacity of approximately 1,226 MW. 16.1.4 Barragán Thermal Power Plant Regarding the commitment to CTB’s closing to combined cycle project, detailed in Note 5.3.5, for increasing the installed power capacity from 567 MW to 847 MW, with an estimated investment of U$S 200 million, on September 27, 2019, CTB and a joint venture made up of SACDE and Techint Compañía Técnica Internacional S.A.C.E.I, executed an engineering, procurement, construction, commissioning and turnkey agreement for the execution of the closing of the combined cycle at CTEB (the “EPC Agreement”). 16.2 Investment commitment for the exploration and exploitation of hydrocarbons As of the issuance of these Consolidated Financial Statements, the Company has committed investments for an estimated total amount of U$S 354 million, based on its participation, to be disbursed between 2020 and 2023, mainly regarding the Sierra Chata, Las Tacanas, El Mangrullo and Rincón del Mangrullo areas. |
17. RELATED PARTIES' TRANSACTIO
17. RELATED PARTIES' TRANSACTIONS | 12 Months Ended |
Dec. 31, 2019 | |
Related party transactions [abstract] | |
RELATED PARTIES' TRANSACTIONS | 17.1 Sales of goods and services 12.31.2019 12.31.2018 12.31.2017 Associates and joint ventures CTB (1) 1 - - Transener - 1 1 TGS (2) 29 51 23 Greenwind 1 - - Refinor (3) 18 16 5 Other related parties SACDE - 1 - 49 69 29 (1) Corresponds mainly to advisory services for technical assistance. (2) Corresponds mainly to advisory services for technical assistance and purchase of gas. TGS’ Meeting of Shareholders held on October 17, 2019 approved certain amendments to the services agreement which extend the agreement’s term and entail a progressive reduction over the years of the remuneration collectable by the Company as technical operator. (3) Corresponds mainly to sales of gas and refined products. 17.2 Purchases of goods and services 12.31.2019 12.31.2018 12.31.2017 Associates and joint ventures TGS (1) (22) (21) (8) SACME (1) (2) (2) Refinor (2) (19) (34) (17) Oldelval (3) (1) (2) (3) Other related parties SACDE (4) - (2) - Orígenes Vida - - (1) (43) (61) (31) (1) Corresponds mainly to natural gas transportation services. (2) Corresponds mainly to purchases of refined products. (3) Correspond mainly to oil transportation services. (4) Correspond mainly to construction services that include work execution and storage of materials, capitalized in Properties, plant and equipment. 17.3 Fees for services 12.31.2019 12.31.2018 12.31.2017 Other related parties Salaverri, Dellatorre, Burgio & Wetzler (1) (1) (1) (1) (1) (1) Corresponds to fees for legal advice. 17.4 Other operating income (expenses), net 12.31.2019 12.31.2018 12.31.2017 Associates and joint ventures Greenwind (1) - - OCP (1) - (7) - Other related parties SACDE 1 - - Foundation (2) (2) (2) (1) (2) (9) (1) (1) (2) 17.5 Finance income 12.31.2019 12.31.2018 12.31.2017 Associates and joint ventures TGS 3 3 3 3 3 3 Corresponds to finance leases. 17.6 Dividends received 12.31.2019 12.31.2018 12.31.2017 Associates and joint ventures CIESA/TGS 56 18 - OCP 14 - - Oldelval - 1 - Citelec 17 - - 87 19 - 17.7 Payment of dividends Other related parties 12.31.2019 12.31.2018 12.31.2017 EMESA - (2) (2) APCO Oil - - (2) - (2) (4) 17.8 Key management personnel remuneration The total remuneration to executive directors accrued amounts to U$S 6 million (U$S 7 million loss for Directors' and Sindycs' fees and U$S 1 million net gain for the accrual of the Company-Value Compensation, EBDA Compensation and Stock-based Compensation Plans) during the year ended December 31, 2019, U$S 9.6 million (U$S 4.6 million in Directors' and Sindycs' fees and U$S 5.0 million in the accrual of the Company-Value Compensation, EBDA Compensation and Stock-based Compensation Plans) during the year ended December 31, 2018 and U$S 31.2 million (U$S 4.1 million in Directors' and Sindycs' fees and U$S 27.1 million in the accrual of the Company-Value Compensation, EBDA Compensation and Stock-based Compensation Plan) during the year ended December 31, 2017. 17.9 Balances with related parties As of December 31, 2019 Trade receivables Other receivables Current Non Current Current Associates and joint ventures TGS 4 34 5 CIESA - - - Greenwind - 4 - Refinor 2 - - OCP - 15 - Other related parties SACDE - - 2 Other - - 1 6 53 8 As of December 31, 2019 Trade payables Other payables Borrowings Current Current Current Associates and joint ventures Greenwind 5 - - SACME 2 - - Citelec - - 14 OCP - 5 - Refinor 1 - - 8 5 14 According to paragraphs 25 and 26 of IAS 24, Edenor applied the disclosure exemption in relation to related party transactions with a governmental agency that has control, joint control or significant influence. As of December 31, 2019, ANSES holds Edenor's Notes due 2022 amounting to $ 752 million (U$S 20 million of nominal value). As of December 31, 2018 Trade receivables Other receivables Current Non Current Current Associates and joint ventures TGS 8 38 4 Greenwind - 11 - Refinor 2 - - Other related parties SACDE - - 1 10 49 5 As of December 31, 2018 Trade payables Other payables Borrowings Current Current Current Associates and joint ventures TGS 3 - - Refinor 3 - - Other related parties Orígenes Retiro - - 1 6 - 1 |
18. LEASES
18. LEASES | 12 Months Ended |
Dec. 31, 2019 | |
Leases | |
LEASES | 18.1 Lessee Edenor leases commercial offices, two warehouses, the headquarters building (which includes administrative, commercial and technical offices), the Energy Handling and Transformer Center (two buildings and a plot of land located within the perimeter of Central Nuevo Puerto and Puerto Nuevo) and Las Heras Substation. Edenor’s lease agreements include cancelable clauses and terms ranging between 2 and 13 years. Furthermore, the Company leases a key part for thermal power plants operation for a 20-year term and has entered into certain oil services agreements (mainly gas compression services) which, considering their characteristics, contain the lease of the assets for the rendering of the services with terms ranging between 2 and 6 years. The terms of the lease agreements are negotiated on an individual basis and comprise a broad range of terms and conditions. The evolution of right-of-use assets and lease liabilities recognized as of December 31, 2019 is disclosed below: 18.1.1 Right of use assets Original values Type of good At the beginning Increase At the end (1) Machinery and equipment - 13 13 Buildings - 7 7 Total at 12.31.2019 - 20 20 Depreciation Type of good At the beginning For the year At the end Machinery and equipment - (2) (2) Buildings - (2) (2) Total at 12.31.2019 - (4) (4) Net book values Type of good At the end Machinery and equipment 11 Buildings 5 Total at 12.31.2019 16 (1) 18.1.2 Lease liabilities 12.31.2019 At the beginning of the year - Incorporation by adoption of IFRS 16 8 Increases 13 Discounted value measurement (1) 3 Payments (5) Exchange differences on translation (3) At the end of the year 16 (1) As of December 31, 2019, this liability is disclosed under Other current payables in the amount of U$S 4 million and Other non-current payables for U$S 12 million. The following table includes an analysis of the Company lease liabilities, grouped according to their maturity dates. The amounts shown in the table are the contractual undiscounted cash flows: 12.31.2019 Less than three months 1 Three months to one year 4 One to two years 4 Two to three years 2 Three to four years 1 Four to five years 1 More than five years 16 Total 29 18.1.3 Short-term or low value leases As of December 31, 2019, the Company has recognized administrative costs and expenses in the amount of U$S 10 million on account of lease payments associated with short-term leases and low-value underlying assets. 18.2 Lessor 18.2.1 Financial leases Corresponding to the financing granted to TGS for the sale of certain property, plant and equipment belonging to the Oil & Gas business segment. This agreement was entered into on August 11, 2016, and consists of the collection of 119 monthly consecutive installments of U$S 623 thousand, without considering taxes, and a purchase option for a like amount payable at the end of the 120 months of the contract life. As of December 31, 2019, this receivable is disclosed under Other current receivables in the amount of U$S 5 million and under Other non-current receivables for U$S 34 million. The following table includes an analysis of the Company receivable, grouped according to its maturity dates. The amounts shown in the table are the contractual undiscounted cash flows: 12.31.2019 Less than three months 2 Three months to one year 6 One to two years 7 Two to three years 7 Three to four years 7 Four to five years 7 More than five years 12 Total 48 18.2.2 Operating leases Edenor has entered into operating lease contracts with certain cable television companies granting them the right to use its network’s poles. Most of these contracts have an automatic renewal clause. As of December 31, 2019 and 2018, future minimum collections regarding operating leases are those detailed below: 12.31.2019 12.31.2018 2019 - 5 2020 5 - Total future minimum lease collections 5 5 The total income from operating leases for the years ended December 31, 2019 and 2018 amounts to U$S 5 million and U$S 5, respectively. |
19. COMPENSATION PLANS
19. COMPENSATION PLANS | 12 Months Ended |
Dec. 31, 2019 | |
Compensation Plans | |
COMPENSATION PLANS | 19.1 Company-Value Compensation (Pampa as successor company of PEPASA) On November 6, 2013, former PEPASA’s Extraordinary General Meeting of Shareholders resolved to approve a variable and contingent compensation to certain officers equivalent to 7% of the capital stock after the former PEPASA’s capital stock increase, valued based on the difference between the share’s market value at the time of exercising the right and a given value of U$S 0.1735 per share determined at the exact moment of the former PEPASA’s capital stock increase. On January 13, 2014, the former PEPASA’s capital stock increase was carried out and the rights granted to officers to receive the Company-Value Compensation became effective for the equivalent to 8,359,000 shares. On January 18, 2017, PEPASA's officers requested the monetization of the right for the equivalent to 5.737.000 shares, which was canceled by the Company on January 31, 2017. Within the framework of the corporate reorganization process described in Note 5.1.1.1, Pampa, as the absorbing company, is the universal successor of all the rights and obligations of the absorbed companies, including PEPASA. Therefore, as a consequence of the application of the exchange ratio of 2.2699 Pampa shares for each PEPASA share pursuant the merger, the officers who, by virtue of the agreement, had the option of monetizing their right over 2,985,000 PEPASA’ shares, have a post-merger option to monetize its right over a total of 6,775,652 Pampa’s shares at a U$S 0.0764 per share price. On October 7, 2019, the officers agreed to terminate the aforementioned monetization option and as a result, the Company paid on October 11, 2019 a cash amount equivalent to the quoted value of such shares. 19.2 Stock-based Compensation Plan – Certain officers and other key staff (the “Compensation Plan”) On February 8, 2017, the Company’s Board of Directors approved the creation of a stock-based compensation plan and the first Specific Program, whereby certain officers and other key staff covered by each Specific Program will receive a certain number of company shares within the stipulated term aiming to encourage the alignment of the employees performance with the Company’s strategy and to generate a clear and direct link between the creation of value for shareholders and the employees’ compensation. Furthermore, the Company’s Board of Directors approved the acquisition of own shares in the market as a means of implementing the Plan (see Note 13.1.1.3). On April 7, 2017, the Company's Shareholders’ Meeting ratified the approval of the Compensation Plan by the Board of Directors, as well as its terms and conditions; and approved the cancellation of the preferential offer to shareholders in respect to the disposition of such shares as authorized by Section 67 of Capital Markets' Act No. 26,831 for the purposes of implementing such Plan. The number of shares is calculated based on a percentage over the total annual remuneration, plus the bonus assigned to each covered employee, divided by the weighted average price, in pesos, of the Company’s share and ADR for the same period; with one-third vesting each year, which will be awarded together with the payroll for April of the year following the vesting date, provided the employment relationship continues at least as at each vesting date. As of December 31, 2019, the Company has estimated a total quantity of 2,082,165 treasury shares pursuant to Compensation Plan to be delivered to employees 661,802, 668,626, 481,450 and 270,287 during 2020, 2021, 2022 and 2023, respectively. As of December 31, 2019, the Company has acquired 717,750 treasury shares and 191,290 treasury ADRs, 290,363 and 173,891 of which were destined to officers’ compensation during 2019 and 2018, respectively. 19.3 Compensation agreements - Senior Management On June 2, 2017, the Board of Directors approved the execution and signing of compensation agreements with the Company’s main officers (the “Senior Management”), conditional upon their approval by the Annual Ordinary Meeting of Shareholders to be held each year. In accordance with international practices, the purpose of these agreements is to efficiently align the Senior Management’s interests with those of the Company and its shareholders, creating value for them only inasmuch as value is generated for shareholders, that is, if the Company’s market value increases. Under these agreements, the Senior Management will be entitled to a fixed compensation and an annual, variable and contingent long-term compensation related to the Company’s annual market value appreciation, with a cap on the Company’s operating income. With the purpose of avoiding duplication, any analogous compensation that the Senior Management had received from any of the Company’s subsidiaries, will be deducted from the compensation amount in proportion to the Company’s interests in such subsidiaries. 19.4 Share-based Compensation Plan of Edenor In 2016, Edenor’s Board of Directors proposed that the treasury shares be used for the implementation of a long-term incentive plan in favor of executive directors, managers or other personnel holding key executive positions in Edenor in an employment relationship with the latter and those who in the future are invited to participate, in accordance with the provisions of section 67 of Law No. 26,831 on Capital Markets. The plan was ratified and approved by the ordinary and extraordinary shareholders’ meeting held on April 18, 2017. The fair value of the previously referred to shares at the award date, amounted to $ 75.9 million and has been recorded in the Salaries and social security taxes line item, with a contra account in Equity. The amount recorded in Equity is net of the tax effect. |
20. CONTRACTUAL RESOLUTION OF R
20. CONTRACTUAL RESOLUTION OF REAL ESTATE ASSET | 12 Months Ended |
Dec. 31, 2019 | |
Contractual Resolution Of Real Estate Asset | |
CONTRACTUAL RESOLUTION OF REAL ESTATE ASSET | With regard to the real estate asset to be constructed, acquired by Edenor in November 2015, the subsequent termination of the agreement due to RDSA’s default in August 2018, and the respective legal actions brought by Edenor against the seller and the insurance company. On September 30, 2019, Edenor entered into a settlement agreement pursuant to which Edenor receives from the insurer as sole, full and final compensation of U$S 15 million and the assignment in its favor of the insurer’s right to subrogate to the insured’s rights for the amount paid against the policyholder (RDSA). As of December 31, 2019, Edenor has collected of U$S 14 million. The remaining balance will be collected in 6 quarterly installments, the first of them on April 21, 2020. Furthermore, the claim duly filed by Edenor with the Arbitral Tribunal of the BCBA against RDSA in order to obtain the refund of price paid for the undelivered real property was suspended so that the claim can be allowed in RDSA’s insolvency proceedings, such claim was allowed by the court hearing the case for the sum of U$S 35 million. Additionally, a review incident was initiated for the amount that was declared inadmissible in the verifying resolution, for an additional amount of $ 895.7 million. |
21. DOCUMENTATION KEEPING
21. DOCUMENTATION KEEPING | 12 Months Ended |
Dec. 31, 2019 | |
Documentation Keeping | |
DOCUMENTATION KEEPING | On August 14, 2014, the National Securities Commission issued General Resolution No. 629, which introduced modifications to the provisions applicable to the keeping and conservation of corporate and accounting books and commercial documentation. To such effect, the Company and its subsidiary Edenor, have sent non-sensitive work papers and information corresponding to the periods not covered by the statute of limitations for their keeping in the Administración de Archivos S.A (AdeA)’s data warehouse located at Ruta 36, km 34.5, Florencio Varela, Provincia de Buenos Aires and in the Iron Mountain Argentina S.A.’s data warehouses located at the following addresses: - Azara 1245 –C.A.B.A. - Don Pedro de Mendoza 2163 –C.A.B.A. - Amancio Alcorta 2482 C.A.B.A. - San Miguel de Tucumán 601, Carlos Spegazzini, Municipality of Ezeiza, Province of Buenos Aires. A list of the documentation delivered for storage, as well as the documentation provided for in Article 5.a.3) Section I, Chapter V, Title II of the PROVISIONS (2013 regulatory provisions and amending rules), is available at the Company headquarters. |
22. OIL AND GAS RESERVES (Infor
22. OIL AND GAS RESERVES (Information not covered by the auditors' report) | 12 Months Ended |
Dec. 31, 2019 | |
Oil And Gas Reserves | |
OIL AND GAS RESERVES (Information not covered by the auditors' report) | The table below presents the estimated proved reserves of oil (including crude oil, condensate and LNG) and natural gas, by geographic area as of December 31, 2019. Proved Reserves Proved Developed Proved Undeveloped Total Proved Oil and LNG (1) Natural Gas (2) Oil and LNG (1) Natural Gas (2) Oil and LNG (1) Natural Gas (2) Argentina 8,804 10,534 4,746 10,168 13,550 20,702 Total at 12.31.2019 8,804 10,534 4,746 10,168 13,550 20,702 (1) (2) |
23. SUBSEQUENT EVENTS
23. SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events | |
SUBSEQUENT EVENTS | 23.1 New Remuneration scheme at the Spot market for the generation segment On February 27, 2020, SE Resolution No. 31/20 was published in the Official Gazette, superseding the remuneration scheme established by SRRYME Resolution No. 1/19. The new scheme reduces prices of the remuneration for available power capacity, and furthermore transfers the remuneration prices to Argentine pesos by applying a 60 $/U$S exchange rate. However, it establishes that prices will be monthly updated through a factor contemplating a 60% adjustment by IPC and a 40% adjustment by IPIM. Furthermore, it establishes an additional remuneration for the power generated in those hours of maximum thermal requirement of the month. In the case of thermal generators, the average generated power will be considered, and in the case of hydroelectric generators, the average operated power will be considered. Finally, it maintains prices of the remuneration for generated and operated energy. Resolution SE No. 31/20 amendments with an impact on the Company's remuneration scheme are detailed below: 23.1.1 Remuneration for Available Power Capacity 23.1.1.1 Thermal Power Generators The Resolution maintains in effect a remuneration made up of a minimum or base power capacity payment for generators with no availability commitments, and another for offered guaranteed power capacity. Prices of 360 thousand and 270 thousand $/MW-month were established as remuneration for guaranteed power capacity for the summer-winter and autumn-spring periods, respectively, implying a 14% and 18% decreases for the summer-winter and autumn-spring periods, respectively for enabled generators, except for Internal Combustion Engines with capacity less than or equal to 42 MW, for which prices were established at 420 thousand and 330 thousand $/MW-month for the summer-winter and autumn-spring periods, respectively. On the other hand, it establishes an additional remuneration for power generated in the hours of high thermal requirement of the month (hmrt), which corresponds to the 50 hours with the largest dispatch of thermal generation of each month divided into two blocks of 25 hours each, with prices of 45 thousand and 22.5 thousand $/MW-hmrt for the first and second 25 hmrt block, respectively for the summer-winter periods and 7.5 thousand $/MW-hmrt only for the first 25 hmrt block for the autumn-spring periods. Like SRRYME Resolution No. 1/19, Resolution SE No. 31/20, applies a coefficient derived from the unit’s average utilization factor during the last twelve months to the power capacity remuneration. Although it maintains the formula Resolution SRRYME 1/19 scheme, in case if the usage factor is lower than 30%, it establishes a 60% of the power capacity payment will be collected, except for Internal Combustion Engines with capacity less than or equal to 42 MW, that will collect 70% of the power capacity payment. 23.1.1.2 Hydroelectric Generators Power capacity availability is determined independently of the reservoir level, the contributions made, or the expenses incurred. Furthermore, in the case of pumping hydroelectric power plants, the operation as turbine and pump at all hours within the period is considered to calculate availability. The base remuneration is determined by the actual power capacity plus that under programmed and/or agreed maintenance, with prices ranging from 132,000 to 297,000 $/MW-month, depending on the scale and type of power plant, that considering the elimination of the additional remuneration set by SRRYME Resolution No. 1/19, implied a 45% and 12% decrease for conventional and pumping hydroelectric power plants, respectively. It should be noted that, in order to mitigate the incidence of plants’ programmed maintenance, and as a signal for their optimization, a 1.05 factor will be applied to power capacity prices. In case of hydroelectric power plants maintaining control structures on river courses and not having an associated power plant, a 1.20 factor will be applied to the plant at the headwaters. On the other hand, it establishes an additional remuneration for power operated in the hours of high thermal requirement of the month, with a price of 32.5 thousand $/MW-hmrt applying a 1.2 and 0.6 factor for the first and second 25 hmrt block, respectively, for the summer-winter periods and 0.2 factor only for the first 25 hmrt block for the autumn-spring periods. 23.1.1.3 Wind power No remuneration related to power capacity availability is set, establishing a single remuneration value for generated energy (see next item). 23.1.2 Remuneration for Generated and Operated Energy It establishes a remuneration for Generated Energy with prices ranging between 240 and 420 $/MWh, depending on the type of fuel and a remuneration for Operated Energy applicable to the integration of hourly power capacities for the period, with an 84 $/MWh price for any type of fuel, thus maintaining prices established by SRRYME Resolution No. 1/19. It should be noted that, in the event that the generation unit is dispatched outside the optimal dispatch, remuneration for generated energy will be set at 60% of the net installed power capacity, regardless of the energy delivered by the generation unit. In the case of hydroelectric plants, prices for Energy Generated and Operated under Resolution SE No. 31/20 are remunerated at 210 $/MWh and 84 $/ MWh, respectively, maintaining prices established by SRRYME Resolution No. 1/19. The remuneration for operated energy must correspond to the optimal dispatch of the system, however, the resolution does not indicate what the consequence would be otherwise. In the case of hydroelectric pumping plants, both the energy generated and the one consumed for pumping, by the energy pumped, and the energy operated are considered. In addition, if it functions as a synchronous compensator, 60 $/MVAr will be recognized for the megavolt exchanged with the network when required and 84 $/MWh for the energy operated. As regards energy generated from unconventional sources, Resolution SE No. 31/20 establishes a single remuneration value of 1,680 $/MWh, irrespective of the source used, maintaining the value established by SRRYME Resolution No. 1/19. Energy generated prior to the commissioning by the OED will be remunerated at 50% of the above-mentioned remuneration. 23.2 Buyback of own shares After the closing of the year, the Company acquired the equivalent of 52,241,300 own shares for an approximate value of U$S 27 million corresponding to the Buyback Program mentioned in Note 13.1.1.2. 23.3 Stock-based compensation plan During January 2020, the Company delivered the equivalent of 163,466 own shares as payment under the stock-based compensation plan to officers and other key staff. |
4. ACCOUNTING POLICIES (Policie
4. ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies | |
New accounting standards, amendments and interpretations issued by the IASB effective as of December 31, 2019 and adopted by the Company | The Company has first applied the following standards and/or amendments as from January 1, 2019: - IFRS 16 – “Leases” (issued in January 2016). - - IFRS 9 – “Financial Instruments” (application guideline amended in October 2017) - IAS 28 – “Investments in Associates and Joint Ventures” (amended in October 2017) - Annual Improvements to IFRS Standards 2015–2017 Cycle (issued in December 2017) - IAS 19 – “Employee Benefits” (amended in February 2018) The impact of the initial application of IFRS 16 in the Company’s operating results and financial position as from January 1, 2019 is detailed below. The application of the remaining standards, amendments or interpretations did not have any impact on the results of the operations or the financial position of the Company. 4.1.1 Impacts of the adoption of IFRS 16 The Company has opted to apply IFRS 16, using the simplified approach, in relation to lease contracts previously identified as such under IAS 17, retrospectively with the cumulative effect recognized as an adjustment to the opening balance of retained earnings as of January 1, 2019, without restating comparative information. Until December 31, 2018, only contracts classified as financial leases under IAS 17 were capitalized by the Company, that is, contracts where the Company had substantially all of the risks and rewards of ownership of the leased asset. At the financial lease´s inception, the Company recorded an asset and a liability for the same value, corresponding to the leased property’s fair value, or, if lower, the present value of the minimum lease payments. The corresponding rental obligations, net of finance charges, were included in other liabilities. Each lease payment was allocated between the liability and the finance cost. The finance cost was charged to profit or loss over the lease period so as to produce a constant periodic interest rate on the remaining liability balance for each period. Property, plant and equipment acquired under financial leases were depreciated over the asset’s useful life or, if lower, over the lease term. Leases in which a significant portion of the risks and rewards of ownership were not transferred to the Company were classified as operating leases. Payments made under operating leases (net of any incentive received from the lessor) were charged to profit or loss on a straight-line basis over the lease period. Management has reviewed effective lease contracts and has recognized a right-of-use asset in the amount of U$S 8 million corresponding to the amount of the lease liability as of the adoption date (which equals the present value of the remaining lease payments), as detailed below: Operating lease commitments as of 12.31.2018 10.5 Discount using incremental borrowing rate of 58.16% as of 01.01.2019 (2.4) Exchange differences on translation (0.1) Lease liability recognised as of 01.01.2019 8 The rest of the identified lease commitments correspond to contracts ending within 12 months of the date of initial application, which continue to be recognized by the Company on a straight-line basis. As of the adoption date, the Company has maintained the recorded book value for right-of-use assets and lease liabilities which were classified as finance leases under IAS 17. Finally, no transition adjustments were made for leases in which the Company acts as a lessor. Consequently, the Company has not recognized any adjustment to retained earnings upon the initial application of IFRS 16. |
New standards, amendments and interpretations issued by the IASB not yet effective and which have not been early adopted by the Company | - IFRS 17 - “Insurance Contracts”: issued in May 2017. It supersedes IFRS 4, introduced in 2004 as an interim standard, which gave companies dispensation to carry on accounting for insurance contracts using national accounting standards, thus resulting in several application approaches. IFRS 17 sets the principles for the recognition, measurement, presentation and disclosure of information associated with insurance contracts and is applicable as from January 1, 2021, allowing for its early adoption for entities already applying IFRS 9 and IFRS 15. The Company estimates that its application will not have a significant impact on the Company’s operating results or financial position. - Conceptual Framework: in March 2018, the IASB published a revised conceptual framework which will supersede the current one. However, this framework is not a standard in itself and will not override any existing standard. The concepts of the revised conceptual framework will be immediately taken into consideration in the issuance of future standards by the IASB and the Interpretations Committee. Preparers of financial statements under IFRS will consider the revised conceptual framework for the development of accounting policies on matters not specifically addressed by the IFRS for annual periods beginning on or after January 1, 2020. - IFRS 3 – “Business Combinations”: amended in October 2018. It clarifies the definition of business and establishes guidelines for determining whether a transaction should be accounted for as a business combination or as an acquisition of assets. It applies to acquisition transactions as from January 1, 2020, and allows for its early adoption. - IAS 1 – “Presentation of Financial Statements” and IAS 8 – “Accounting Policies, Changes in Accounting Estimates and Errors”: amended in October 2018. They clarify the definition of materiality and incorporate the concept of “information shadowing” when there is an effect similar to omitting or reporting inaccurate information. They apply prospectively to annual periods starting on or after January 1, 2020, and allow for early adoption. - Amendments to IFRS 9 – “Financial Instruments”, IAS 39 – “Financial instruments: Presentation” and IFRS 7 – “Financial Instruments: Disclosures”: it incorporates temporary exemptions in the case of hedge relationships affected by the interest rate benchmark reform pursuant to the recommendations published by the Financial Stability Board (FSB) in July 2014. Amendments are applicable to fiscal years starting on or after January 1, 2020, allowing for early adoption. |
Effects of changes in foreign exchange rates | 4.3.1 Functional and presentation currency The information included in these Consolidated Financial Statements is recorded and presented in U.S. Dollars, which is the Company’s functional currency, that is, the currency of the primary economic environment where the entity operates. 4.3.2 Foreign-currency transactions and balances Foreign currency transactions are translated into the functional currency at the exchange rates prevailing on each transaction date or valuation date, when items are remeasured. Foreign exchange gains and losses arising on the settlement of monetary items and on translating monetary items at the closing of the fiscal year using year-end exchange rate are recognized within the financial results in the statement of comprehensive income, with the exception of capitalized amounts. 4.3.3 Group companies’ translation into functional currency The results and financial position of subsidiaries, joint ventures and associates whose functional currency is the Argentine Peso, a currency of a hyperinflationary economy, are translated into the Company’s functional currency using the year-end exchange rate. The results generated by the application of IAS 29 adjustment mechanism for hyperinflationary economies, on the opening equity measured in functional currency are recognized under “Other comprehensive income”. 4.3.4 Classification of Other comprehensive income within the Company’s equity The Company classifies and directly accumulates within equity, in the retained earnings line, the results generated by the application of the IAS 29 adjustment mechanism on the opening retained earnings, while the remaining results are presented in a separate component of equity and accumulated until the disposal of the foreign operation in “Other comprehensive income”, in accordance with IAS 21. |
Principles of consolidation and equity accounting | 4.4.1 Subsidiaries Subsidiaries are all entities over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. The Group cease consolidation of entities from the date that control ceases. The acquisition method of accounting is used to account for business combinations by the Group (see Note 4.4.5 below). Intercompany transactions, balances and unrealized gains on transactions between Group companies are eliminated. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the transferred asset. Accounting policies of subsidiaries have been changed when necessary to ensure consistency with the policies adopted by the Group. Non-controlling interests in the results and equity of subsidiaries are shown separately in the Consolidated Statement of Comprehensive Income, Consolidated Statement of Changes in Equity and Consolidated Statement of Financial Position respectively. 4.4.2 Associates Associates are all entities over which the group has significant influence but not control or joint control. This is generally the case where the Group holds between 20% and 50% of the voting rights. Investments in associates are accounted for using the equity method of accounting (see Note 4.4.4 below), after initially being recognized at cost. 4.4.3 Joint arrangements Investments in joint arrangements are classified as either joint operations or joint ventures, according IFRS 11 “ Joint Arrangements” 4.4.3.1 Joint operations The Company recognizes its direct right to the assets, liabilities, incomes and expenses of joint operations and its share of any jointly held or incurred assets, liabilities, incomes and expenses. These have been incorporated in the Consolidated Financial Statements under the appropriate headings. 4.4.3.2 Joint ventures Interests in joint ventures are accounted for using the equity method (see Note 4.4.4 below), after initially being recognized at cost. 4.4.4 Equity Method Under the equity method of accounting, the investments are initially recognized at cost and adjusted thereafter to recognize the Group’s share of the post-acquisition profits or losses of the investee in profit or loss, and the Group’s share of movements in other comprehensive income of the investee in other comprehensive income. Dividends received or receivable from associates and joint ventures are recognized as a reduction in the carrying amount of the investment. When the Group’s share of losses in an equity-accounted investment equals or exceeds its interest in the entity, together with any long-term interests that, in substance, form part of the net investment, the Group does not recognize further losses, unless it has incurred obligations or made payments on behalf of the other entity. Unrealized gains on transactions between the Group and its associates and joint ventures are eliminated to the extent of the group’s interest in these entities. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of equity accounted investees have been changed where necessary to ensure consistency with the policies adopted by the Group. The carrying amount of equity accounted investments is tested for impairment in accordance with the policy described below in Note 4.9. 4.4.5 Business combinations The acquisition method of accounting is used to account for all business combinations, regardless of whether equity instruments or other assets are acquired. The consideration transferred for the acquisitions comprises: i. the fair value of the transferred assets, ii. the liabilities incurred to the former owners of the acquired business, iii. the equity interests issued by the group, iv. the fair value of any asset or liability resulting from a contingent consideration arrangement, and v. the fair value of any pre-existing equity interest in the subsidiary. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. The group recognises any non-controlling interest in the acquired entity on an acquisition-by-acquisition basis at the non-controlling interest’s proportionate share of the acquired entity’s net identifiable assets. Acquisition-related costs are expensed as incurred. The value of the goodwill represents the excess of: Where settlement of any part of cash consideration is deferred, the amounts payable in the future are discounted to their present value as at the date of exchange. The discount rate used is the entity’s incremental borrowing rate, being the rate at which a similar borrowing could be obtained from an independent financier under comparable terms and conditions. Contingent consideration is classified either as equity or a financial liability. Amounts classified as a financial liability are subsequently remeasured to fair value with changes in fair value recognised in profit or loss. If the business combination is achieved in stages, the acquisition date carrying value of the acquirer’s previously held equity interest in the acquiree is remeasured to fair value at the acquisition date. Any gains or losses arising from such remeasurement are recognised in profit or loss. The Group has up to 12 months to finalize the accounting for a business combination. Where the accounting for a business combination is not complete by the end of the year in which the business combination occurred, the Group reports provisional amounts. 4.4.6 Changes in ownership interests The Group treats transactions with non-controlling interests that do not result in a loss of control as transactions with equity owners of the group. A change in ownership interest results in an adjustment between the carrying amounts of the controlling and non-controlling interests to reflect their relative interests in the subsidiary. Any difference between the amount of the adjustment to non-controlling interests and any consideration paid or received is recognized in “Other reserves” within equity attributable to owners of the Company. When the Group ceases to consolidate or equity account for an investment because of a loss of control, joint control or significant influence, any retained interest in the entity is remeasured to its fair value with the change in carrying amount recognized in profit or loss. This fair value becomes the initial carrying amount for the purposes of subsequently accounting for the retained interest as an associate, joint venture or financial asset. In addition, any amounts previously recognized in other comprehensive income in respect of that entity are accounted for as if the Group had directly disposed of the related assets or liabilities. This may mean that amounts previously recognised in other comprehensive income are reclassified to profit or loss. If the ownership interest in a joint venture or an associate is reduced but joint control or significant influence is retained, only a proportionate share of the amounts previously recognized in other comprehensive income are reclassified to profit or loss where appropriate. |
Segment reporting | Operating segments are reported in a manner consistent with the internal reporting provided to the Executive committee. The Executive Committee, is the highest decision-making authority, is the person responsible for allocating resources and setting the performance of the entity’s operating segments, and has been identified as the person/ body executing the Company’s strategic decisions. In segmentation the Company considers transactions with third parties and intercompany operations, which are done on internal transfer pricing based on market prices for each product. |
Property, plant and equipment | Property, Plant and Equipment is measured following the cost model. It is recognized at acquisition cost less depreciation a less any accumulated impairment. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the group and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognised when replaced. All other repairs and maintenance are charged to profit or loss during the reporting period in which they are incurred. The cost of work in progress whose construction will extend over time includes, if applicable, the computation of financial costs accrued on loans granted by third parties and other pre-production costs, net of any income obtained from the sale of commercially valuable production during the launching period. Works in progress are valued according to their degree of progress. Works in progress are recorded at cost less any loss due to impairment, if applicable. Assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each year. An asset’s carrying amount is written down immediately to its recoverable amount if the asset´s carrying amount is greater than its estimated recoverable amount. Gains and losses on disposals are determined by comparing the sale price with the carrying amount, stated in terms of the measuring unit current at the disposal date. 4.6.1 Depreciation methods and useful lives The group depreciates productive wells, machinery and camps in the oil and gas production areas according to the units of production method, by applying the ratio of oil and gas produced to estimated proved developed oil and gas reserves. The acquisition cost of property with proved reserves is depreciated by applying the ratio of oil and gas produced to estimated proved oil and gas reserves. Acquisition costs related to properties with unproved reserves is valued at cost with recoverability periodically assessed on the basis of geological and engineering estimates of possible and probable reserves that are expected to be proved over the life of each concession. Machinery and generation equipment (including any significant identifiable component) are depreciated under the unit of production method. The group´s remaining items of property, plant and equipment (including any significant identifiable component) are depreciated by the straight-line method based on estimated useful lives, as detailed below: Buildings: 50 years Substations: 35 years High voltage lines: 40 - 45 years Medium voltage lines: 35 - 45 years Low voltage lines: 30 - 40 years Transformer centrals: 25 - 35 years Meters: 25 years Vehicles: 5 years Furniture, fittings and communication equipment: 5- 20 years Computer equipment and software: 3 years Tools: 10 years Gas Plant and Pipeline: 20 years If appropriate, the depreciation method is reviewed and adjusted at the end of each year. 4.6.2 Asset retirement obligations Estimated future costs of asset retirement obligations on well abandonment in oil and gas areas and wind turbines decommissioning in wind farms, discounted at a risk adjusted rate, are capitalized in the cost of the assets and depreciated using the units of production method. Additionally, a liability at the estimated value of the discounted amounts payable is recognized. Changes in the measurement of asset retirement obligations that result from changes in the estimated timing, amount of the outflow of resources required to settle the obligation, or the discount rate, are added to, or deducted from, the cost of the related asset. If a decrease in the liability exceeds the carrying amount of the asset, the excess is recognized immediately in profit or loss. |
Intangible assets | 4.7.1 Goodwill Goodwill is the result of the acquisition of subsidiaries. Goodwill represents the excess of the acquisition cost over the fair value of the equity interest in the acquired entity held by the company on the net identifiable assets acquired at the date of acquisition. For impairment testing, goodwill acquired in a business combination is allocated from the acquisition date to each of the acquirer’s CGU or group of CGUs that are expected to benefit from the synergies of the combination. Each unit or group of units that goodwill is allocated represents the lowest level within the entity at which the goodwill is monitored for internal management purposes. 4.7.2 Concession arrangements Concession arrangements corresponding to Edenor and hydroelectric generation plants Diamante and Nihuiles are not under the scope of the guidelines of IFRIC 12 “Service Concession Arrangements”. These concession agreements meet the criteria set forth by the IFRSs for capitalization less depreciation a less any accumulated impairment. They are amortized following the straight-line method based on each asset’s useful life, which corresponds to the life of each concession agreement. 4.7.3 Identified intangible assets in acquired investments Corresponds to intangible assets identified at the moment of the acquisition of companies. Identified assets meet the criteria established in IFRS for capitalization less depreciation a less any accumulated impairment. They are amortized by the straight-line method according to the useful life of each asset, considering the estimated way in which the benefits produced by the asset will be consumed. |
Assets for oil and gas exploration | The Company uses the successful efforts method of accounting for its oil and gas exploration and production activities. This method involves the capitalization of: (i) the cost of acquiring properties in oil and gas exploration and production areas; (ii) the cost of drilling and equipping exploratory wells that result in the discovery of commercially recoverable reserves; (iii) the cost of drilling and equipping development wells, and (iv) the estimated asset retirement obligations (see Note 4.6.2). According to the successful efforts method of accounting, exploration costs (including geological and geophysical costs), excluding exploratory well costs, are expensed during the period in which they are incurred. Drilling costs of exploratory wells are capitalized until it is determined that proved reserves exists and they justify the commercial development. If reserves are not found, such drilling costs are expensed. Occasionally, an exploratory well may determine the existence of oil and gas reserves but they cannot be classified as proved when drilling is complete. In those cases, such costs continue to be capitalized insofar as the well has allowed determining the existence of sufficient reserves to warrant its completion as a production well and the Company is making sufficient progress in evaluating the economic and operating feasibility of the project. |
Impairment of non-financial long-lived assets | Intangible assets that have an indefinite useful life and goodwill are not subject to amortization and are tested annually for impairment, or more frequently if events or changes in circumstances indicate that they might be impaired. The remaining non-financial long-lived assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs of disposal and value in use. For the purpose of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows which are largely independent of the cash inflows from other assets or groups of assets (CGU). Non-financial long-lived assets, other than goodwill, that have been impaired are reviewed for possible reversal of the impairment at the end of each reporting period. |
Financial assets | 4.10.1 Classification The Group classifies its financial assets in the following categories: i. those that are subsequently measured at fair value (either through other comprehensive income or through profit or loss), and ii. those that are subsequently measured at amortised cost. The classification depends on the entity’s business model for managing the financial assets and the contractual cash flow characteristics. Gains and losses from financial assets measured at fair value, will be recorded in the Statement of Comprehensive Income or in Statement of Other Comprehensive Income. Investments in equity instruments are measured at fair value. For those investments that are not held for trading, the Company may make an irrevocable election at initial recognition to present subsequent changes in other comprehensive income. The Company's election was to recognize changes in fair value through profit and loss. The company reclassifies financial assets when and only when it changes its business model for managing those financial assets. 4.10.2 Recognition and derecognition The conventional purchases and sales of financial assets are accounted for at trade date, that is, the date on which the Company undertakes to purchase or sell the asset, or at settlement date. Financial assets are derecognized when contractual rights to the cash flows from the financial assets have expired or been transferred, and the Company has substantially transferred all risks and rewards of ownership of the asset. 4.10.3 Measurement At initial recognition, the Group measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. A gain or loss on a debt investment that is subsequently measured at fair value and is not part of a hedging relationship is recognised in profit or loss and disclosed in “Changes in the fair value of financial instruments” within “Other financial Results. A gain or loss on a debt investment that is subsequently measured at amortised cost and is not part of a hedging relationship is recognized in profit or loss when the financial asset is derecognised or impaired and through the amortization process using the effective interest rate method. The Group subsequently measures equity investments at fair value. Dividends from such investments continue to be recognized in profit or loss as long as they represent a return on investment. 4.10.4 Impairment of financial assets The Company assesses the expected credit losses related to its financial instruments at amortized cost and financial instruments at fair value through other comprehensive income, if applicable. The Company applies the simplified approach allowed by IFRS 9 to measure expected credit losses for trade receivables and other receivables with similar risk characteristics. For this purpose, receivables are grouped by business segment and based on shared credit risk characteristics and expected credit losses are determined based on rates calculated for different ranges of default days from the due date. The expected loss rates are based on the sales collection profiles over a period of 24 months before the end of each year, considering historical credit losses experienced within this period that are adjusted, if applicable, to reflect forward-looking information that could affect the ability of customers to settle the receivables. 4.10.5 Offsetting of financial instruments Financial assets and liabilities are offset, and the net amount reported in the consolidated statements of financial position, when there is a legally enforceable right to offset the recognized amounts, and there is an intention to settle on a net basis, or realize the asset and settle the liability simultaneously. |
Trade and other receivables | Trade receivables and other receivables are recognized at fair value and subsequently measured at amortized cost, using the effective interest method, less provision for impairment, if applicable. The Company recognises provisions for impairment on trade and other receivables based on expected credit loss model described in Note 4.10.4. Trade receivables are written off when there is no reasonable expectation of recovery. The Company considers the following default indicators: i) voluntary reorganization proceedings, bankruptcy or initiation of judicial demands; ii) insolvency implying a high impossibility of collection and iii) past due balances greater than 90 days. Receivables arising from services billed to customers but not collected by Edenor, as well as those arising from services rendered but unbilled at the closing date of each financial year are recognized at fair value and subsequently measured at amortized cost using the effective interest rate method. Receivables from electricity supplied to low-income areas and shantytowns are recognized, also in line with revenue, when the Framework Agreement has been renewed for the period in which the service was provided. Where applicable, allowances for doubtful tax credits have been recognized based on estimates on their uncollectibility within their statutory limitation period, taking into consideration the Company’s current business plans. |
Derivative financial instruments and hedging account | Derivative financial instruments are measured at fair value, determined as the amount of cash to be collected or paid to settle the instrument as of the measurement date, net of any prepayment collected or paid. Fair value of derivative financial instruments traded in active markets is disclosed based on their quoted market prices and fair value of instruments that are not traded in active markets is determined using different valuation techniques. Subsequent accounting of changes in fair value depends on whether the derivative is designated as a hedging instrument and, if so, the nature of the item being hedged. The Company may designate derivative financial instruments in the following categories: i. fair value hedge of recognized assets or liabilities or over firm commitment (fair value hedge); ii. cash flow hedges of a particular risk associated with recognized assets and liabilities and highly probable future transactions (cash flow hedges), or iii. net investment hedge in foreign operation (net investment hedges). At the beginning of the hedge relationship, the Group documents the economic relationship between the hedging instruments and the hedged items, even if it is expected that changes in the cash flows of the hedging instruments offset changes in the cash flows of the hedged items. The Group documents its objective and risk management strategy to carry out its hedging operations. Changes in the measurement of derivative financial instruments designated as cash flow hedge, which have been determined as effective, are recognized in equity. The gain or loss related to the ineffective portion is recognized immediately in profit or loss. Changes in the measurement of derivative instruments that do not qualify for hedge accounting are recognized in profit or loss. The Company has not formally designated financial instruments as hedging instruments. |
Inventories | This line item includes crude oil stock, raw materials, work in progress and finished products relating to Petrochemicals and Oil and Gas business segments as well as materials and spare parts relating to the Generation and Distribution of Energy business segments. Inventories are stated at the lower of cost or net realizable value. Cost is determined using the weighted average price method. The cost of inventories includes expenditure incurred in purchases and production and other necessary costs to bring them to their existing location and condition. In case of manufactured products and production in process, the cost includes a portion of indirect production costs, excluding any idle capacity (slack). The net realizable value is the estimated selling price in the ordinary course of business less the estimated cost of completion and the estimated costs to make the sale. The assessment of the recoverable value of these assets is made at each reporting date, and the resulting loss is recognized in the statement of income when the inventories are overstated. The Company has classified materials and spare parts into current and non-current, depending on the timing in which they are expected to be used for replacement or improvement on existing assets. The portion of materials and spare parts for maintenance or improvements on existing assets, is exposed under the heading “Property, plant and equipment”. |
Non-current assets (or disposal group) held for sale and discontinued operations | Non-current assets are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use and a sale is considered highly probable. They are measured at the lower of their carrying amount and fair value less costs to sell, except deferred tax assets, assets arising from employee benefits, financial assets and investment property that are carried at fair value and contractual rights from insurance contracts, which are specifically exempt from this requirement. An impairment loss is recognised for any initial or subsequent write-down of the asset until fair value less costs to sell. A gain is recognised for any subsequent increases in fair value less costs to sell of an asset (or disposal group), but not in excess of any cumulative impairment loss previously recognised. The gain or loss not previously recognised by the date of the sale of the non-current asset is recognised at the date of derecognition. Non-current assets (including those that are part of a disposal group) are not depreciated or amortized while they be classified as held for sale. Interest and other expenses attributable to the liabilities of a disposal group classified as held for sale continue to be recognized. Non-current assets classified group of assets classified as held for sale are presented separately from the other assets in the balance sheet. The liabilities of a disposal group classified as held for sale are presented separately from other liabilities in the balance sheet. These assets and liabilities are not offset. If it is a discontinued operation, that is, an item which has been disposed of or classified as held for sale; and (i) it represents a significant business line or geographic area which may be considered separate from the rest; (ii) it is part of a single coordinated plan to dispose of a significant business line or operating geographic area which may be deemed separate from the rest; or (iii) it is a subsidiary entity acquired solely for the purpose of reselling it; a single amount is disclosed in the statement of comprehensive income, which shows results of discontinued operations, net of tax, including the result for the valuation at fair value less cost of sales or asset disposal costs, if applicable. |
Cash and cash equivalents | For the purpose of presentation in the Consolidated Statement of Cash Flows, cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. If any, bank overdrafts are shown within borrowings in current liabilities in the Consolidated Statement of Financial Position and there are not disclosed under Cash and cash equivalents in the Consolidated Statement of Cash Flows since they are not part of the Company’s cash management. |
Shareholder's equity | Equity’s movements have been accounted for in accordance with the pertinent decisions of shareholders' meetings and legal or regulatory standards. All equity accounts have been restated in terms of the measuring unit current as of December 31, 2018, with the exception of Share capital and Treasury shares, which represent the subscribed and paid in, and the outstanding treasury capital, respectively. The adjustment resulting from its restatement as of December 31, 2018 is disclosed in the Comprehensive share capital adjustment and Comprehensive treasury shares adjustment lines, respectively. As from the change in functional currency detailed in Note 3.1, the Company has discontinued the preparation and presentation of financial statements under IAS 29, and has considered equity figures expressed in terms of the measuring unit current as of December 31, 2018 as the basis for subsequent financial statements’ amounts. 4.16.1 Share capital Share capital represents the capital issued, composed of the contributions that were committed and/or made by the shareholders and represented by shares that comprise outstanding shares at nominal value. Ordinary shares are classified as equity. 4.16.2 Share premium It includes: i. The portion of the collected price exceeding the face value of the shares issued by the Company, net of absorbed accumulated losses. ii. The difference between the fair value of the consideration paid/collected and the accounting value of the equity interest in the subsidiary acquired/sold/diluted which does not represent a loss of control or significant influence. iii. The difference between the proportional equity value registered before the merger of subsidiary and the value resulting from applying to the subsidiary’s merged equity interest, the new ownership share resulting from the exchange relationship. 4.16.3 Legal reserve In accordance with the Argentine Commercial Companies General Law, 5% of the profit arising from the statement of income for the year, prior years' adjustments, the translation differences which are directly accumulated in Retained earnings (see Note 4.3.4), the amounts transferred from other comprehensive income and prior years' accumulated losses, must be appropriated to a legal reserve until such reserve equals 20% of the Company’s share capital, the related adjustment of share capital. When for any reason, the amount of this reserve will be shorter, dividends may not be distributed, until such amount is reached. 4.16.4 Voluntary reserve This reserve results from an allocation made by the Shareholders’ Meeting, whereby a specific amount is set aside to cover for the funding needs of projects and situations associated with Company policies. 4.16.5 Other reserves It includes the result of operations with non-controlling interest that do not result in a loss of control and reserves for stock compensation plans. 4.16.6 Retained earnings (Accumulated losses) Retained earnings comprise accumulated profits or losses without a specific appropriation; positive earnings can be distributable by the decision of the Shareholders' meeting, as long as they are not subject to legal restrictions. These earnings comprise prior years' earnings that were not distributed, translation differences which are directly accumulated in retained earnings pursuant to the policy described in Note 4.3.4, the amounts transferred from other comprehensive income and prior years' adjustments, according to IFRS. General Resolution No. 593/11 issued by the CNV provided that Shareholders in the Meetings at which they should decide upon the approval of financial statements in which the Retained earnings account has a positive balance, should adopt an express resolution as to the allocation of such balance, whether to dividend distribution, capitalization, setting up of reserves or a combination of these. The Company’s Shareholders have complied with these requirements. 4.16.7 Other comprehensive income It includes gains and losses from the remeasurement process of foreign operations and the translation differences which are not classified and directly accumulated in retained earnings pursuant to the policy described in Note 4.3.4 and actuarial gains and losses for defined benefit plans and the related tax effect. 4.16.8 Dividends distribution Dividend distribution to Company shareholders is recognized as a liability in the Consolidated Financial Statements in the year in which the dividends are approved by the Shareholders' Meeting. The distribution of dividends is made based on the Company’s Stand-Alone Financial Statements. |
Compensation plans | Note 19 details the conditions applicable to the different compensation agreements and the main variables considered in the corresponding valuation model. The following guidelines under IFRS 2 have been taken into consideration for the registration of stock-based compensations: - Compensations payable in cash: i. Compensation agreements – Senior Management: the reasonable value of the received services is measured through a share appreciation estimate using the Black-Scholes-Merton valuation model. The fair value of the amount payable under the compensation agreements is accrued and acknowledged as an expense, with the corresponding increase in liabilities. Liabilities are revalued on each balance sheet date. Any change in the fair value of liabilities is disclosed under profit or loss. ii. Company Value Sharing (“Company-Value Compensation”) – Pampa (as PEPASA´s successor company): the Black-Scholes-Merton financial valuation model was used to make this estimate, taking into consideration the enforceability of the remuneration. The fair value of the amount payable for the compensation plan is accrued and acknowledged as an expense, with the recognition of an increase in liabilities. Liabilities are revalued on each balance sheet date and at their settlement date. Any change in the fair value of liabilities is disclosed under profit or loss. iii. Annual Variable Compensation granted to certain officers for the performance of technical and administrative duties amounting to 7% of the EBDA accrued (EBITDA less paid income tax, less total net financial costs, less interest on its own capital, considering an annual 10% dollar-denominated rate) of PEPASA´s continuing business in Pampa. The Company recognizes a provision (liability) and an expense for this EBDA Compensation based on the previously mentioned formula. - Compensations payable in shares i. Stock-based Compensation Plan – Officers and other key staff: the fair value of the received services is measured at the fair value of shares at the time of granting, and is disclosed during the vesting period, together with the corresponding increase in equity. ii. Stock-based Compensation Plan -Edenor: The fair value of the services received is disclosed as an expense and determined by reference to the fair value of the granted shares. When the employees provide the services before the shares are granted, the fair value at the grant date is estimated in order to recognize the respective result. |
Trade payables and other payables | Trade payables and other payables are recognized initially at fair value and subsequently measured at amortized cost using the effective interest method, except for particular matters described below. 4.18.1 Customer guarantees Customer guarantees are initially recognized at fair value and subsequently measured at amortized cost using the effective interest method. In accordance with the Concession Agreement, Edenor is allowed to receive customer guarantees in the following cases: i. When the power supply is requested and the user is unable to provide evidence of his legal ownership of the premises; ii. When service has been suspended more than once in one-year period; iii. When the power supply is reconnected and Edenor is able to verify the illegal use of the service (fraud). iv. When the customer is undergoing liquidated bankruptcy or reorganization proceedings. Edenor has decided not to request customer guarantees from residential tariff customers. Customer guarantees may be either paid in cash or through the customer’s bill and accrue monthly interest at a specific rate of BNA for each customer category. When the conditions for which Edenor is allowed to receive customer guarantees no longer exist, the customer’s account is credited for the principal amount plus any interest accrued thereon, after deducting, if appropriate, any amounts receivable which Edenor has with the customer. 4.18.2 Edenor’s customer refundable contributions Edenor receives assets or facilities (or the cash necessary to acquire or built them) from certain customers for services to be provided, based on individual agreements and the provisions of ENRE Resolution No. 215/12. These contributions are initially recognized as trade payables at fair value against Property, plant and equipment, and are subsequently measured at amortized cost using the effective interest rate method. 4.18.3 Edenor’s particular matters The recorded liabilities for penalties accrued, whether imposed or not yet issued by the ENRE (Note 2.3), and other provisions are the best estimate of the settlement value of the present obligation in the framework of IAS 37 provisions at the date of these Consolidated Financial Statements. The balances of ENRE Penalties and Discounts are adjusted in accordance with the regulatory framework applicable thereto and are based on Edenor’s estimate of the outcome of the RTI process described in Note 2.3. |
Borrowings | Borrowings are recognized initially at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortized cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognized in profit or loss over the period of the borrowings, using the effective interest method. Borrowings are removed from the statement of financial position when the obligation specified in the contract is discharged, cancelled or expired. The difference between the carrying amount of a financial liability that has been extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in profit or loss as other income or finance costs. Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for at least 12 months after the reporting period. 4.19.1 Borrowing costs General and specific borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalized during the period of time that is required to complete and prepare the asset for its intended use or sale. Qualifying assets are assets that necessarily take a substantial period of time to get ready for their intended use or sale. Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalization. Other borrowing costs are expensed in the period in which they are incurred. |
Deferred revenues | Non-refundable customer contributions : i. Customer connection to the network: revenue is accrued until such connection is completed; ii. Continuous provision of the electric power supply service: throughout the shorter of the useful life of the asset and the term for the provision of the service. |
Employee benefits | 4.21.1 Short-term obligations Liabilities for wages and salaries, including non-monetary benefits and accumulating sick leave that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service are recognised in respect of employees’ services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as current salaries and social security payable in the consolidated statement of financial position. 4.21.2 Defined benefit plans Labor costs liabilities are accrued in the periods in which the employees provide the services that trigger the consideration. Additionally, the Company operates several defined benefit plans. Defined benefit plans define an amount of pension benefit that an employee will receive on retirement, depending on one or more factors, such as age, years of service and compensation. In accordance with conditions established in each plan, the benefit may consist in a single payment, or in making complementary payments to those made by the pension system. The defined benefit liability recognized in the financial statement balance sheet, at the end of the reporting period, is the present value of the defined benefit obligation net of the fair value of the plan assets, when applicable. The defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using future actuarial assumptions about demographic and financial variables that affect the determination of the amount of such benefits. Actuarial gains and losses from experience adjustments and changes in actuarial assumptions, are recognized in other comprehensive income (loss) in the period in which they arise and past service costs are recognized immediately in the statement of income (loss). |
Provisions, contingent liabilities and contingent assets | Provisions are recognized when the group has a present legal or constructive obligation as a result of a past event, it is probable that an outflow of resources will be required to settle that obligation, and the amount can be reliably estimated. Provisions are not recognised for future operating losses. Provisions are measured at the present value of the expenditures expected to be required to settle the present obligation, taking into account the best available information as of the date of the Consolidated Financial Statements based on assumptions and methods considered appropriate and taking into account the opinion of each Company’s legal advisors. As additional information becomes available to the Company, estimates are revised and adjusted periodically. The discount rate used to determine the present value reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the passage of time is recognised as other financial results. Contingent liabilities are possible obligations that arise from past events and whose existence will be confirmed only by the occurrence or non-occurrence of uncertain future events not wholly within the control of the entity; or present obligations that arise from past events but it is not probable that an outflow of resources will be required to its settlement; or whose amount cannot be measured with sufficient reliability. Contingent liabilities are not recognised. The Company discloses in notes to the Consolidated Financial Statements a brief description of the nature of material contingent liabilities. Contingent liabilities, whose possibility of any outflow in settlement is remote, are not disclosed unless they involve guarantees, in which case the nature of the guarantee is disclosed. Contingent assets are possible assets that arise from past events and whose existence will be confirmed only by the occurrence or non-occurrence of uncertain future events not wholly within the control of the entity. Contingent assets are no recognised. The Company discloses in notes to the Consolidated Financial Statements a brief description of the nature of material contingent assets, where the related inflows of economic benefits are estimated to be probable. |
Revenue from contracts with customers | 4.23.1 Generation segment 4.23.1.1 Revenues from sales to the spot market (SRRYME Resolution No. 1/19) The Company recognizes revenues from i) power availability on a monthly basis as the different power plants are available to generate and ii) energy generated when the delivery of energy is effective, based on the price applicable depending on the technology of each plant and, in the case of thermal power plants, the application of the coefficient derived from the average usage factor over the last 12 months on the power capacity remuneration specified in the Resolution. Revenues are not adjusted for the effect of financing components as sales are made with an average credit term of 45 days, which is consistent with market practice. 4.23.1.2 Revenues from supply agreements with CAMMESA (SE Resolution No. 220/07, SEE Resolution No. 21/16, SEE Resolution No. 287/17 and Renovar Programs) The Company recognizes revenues from supply contracts with CAMMESA for i) power availability, when applicable, on a monthly basis, as the different power plants are available to generate and ii) energy generated when the delivery of energy is effective, based on the price established in each contract. Revenues are not adjusted for the effect of financing components as sales are made with an average credit term of 45 days, which is consistent with market practice. 4.23.1.3 ) The Company recognizes revenues from energy plus sales and renewable energy when the delivery of energy is effective based on the price established in each contract. Revenues are not adjusted for the effect of financing components as sales are made with an average credit term of 30 days, which is consistent with market practice. 4.23.2 Distribution segment 4.23.2.1 Revenues from contracts with customers Edenor's revenue is measured at the fair value of the consideration collected or to be collected, taking into account the estimated amount of any discount, thus determining the net amounts. Edenor recognizes, on a monthly basis, revenues from electricity distribution as energy is distributed to each client based on the applicable tariff and procedures established by the ENRE. Such revenue includes energy delivered, whether billed or unbilled, at the end of each period. Revenues are not adjusted for the effect of financing components as sales’ payments are not deferred over time, which is consistent with market practice. Edenor recognizes revenues related to energy supply to low-income areas and shantytowns, only to the extent that the Framework Agreement has been renewed for the period in which the service was rendered. As of the date of issuance of these Consolidated Financial Statements, the Framework Agreement is not currently in effect. 4.23.2.2. Edenor’s other revenues from contracts with customers Edenor recognizes other revenues from contracts with customers in relation to connection and reconnection services, rights of use on poles and transport of energy to other distribution companies on a monthly basis as services are rendered based on the price established in each contract. Revenues are not adjusted for the effect of financing components as sales’ payments are not deferred over time, which is consistent with market practice. 4.23.3 Oil and gas segment The Company recognizes revenues from the sale of oil and gas, to third parties and intersegment, when control of the product is transferred, that is, at the output of each area, when the oil and gas is delivered to the carrier and to the extent there is no unfulfilled obligation that could affect the acceptance of the product by the client. In all cases the transport of the gas is in charge of the client. Revenues from these sales are recognized based on the price by product specified in each contract or agreement to the extent that it is highly probable that a significant reversal will not occur. Revenues are not adjusted for the effect of financing components as sales are made with an average credit term not exceeding 30 days, which is consistent with market practice. 4.23.4 Petrochemical segment The Company recognizes revenues from the sale of petrochemical products, whether in local or foreign market, when the control of the product is transferred, that is, when the products are delivered to the client and there is no unfulfilled obligation that could affect the acceptance of the product by the client. The delivery, as established in each contract, is occurs: (a) when the products are dispatched and transported by and in charge of the client, or, (b) when the products have been dispatched by the Company to a specific location, the obsolescence risks and loss have been transferred to the client, and the client has accepted the products according to the sale contract, the acceptance provisions have expired, or when the Company has objective evidence that all acceptance criteria have been met. Revenues from these sales are recognized based on the price specified in each contract, to the extent that it is highly probable that a significant reversal will not occur. Revenues are not adjusted for the effect of financing components as sales are made with an average credit term not exceeding 28 days, which is consistent with market practice. 4.23.5 Holding and others segment The Company recognizes revenues from contracts with customers in relation to advisory services to related companies as services are rendered based on the price established in each agreement. Revenues are not adjusted for the effect of financing components, as sales are made with an average credit term of 30 days, which is consistent with market practice. |
Other Income | 4.24.1 Government grants Grants from the government are recognised at their fair value where there is a reasonable assurance that the grant will be received and the Group will comply with all attached conditions. There are no unfulfilled conditions or other contingencies attaching to the following grants. The group did not benefit directly from any other forms of government assistance. 4.24.1.1 Recognition of Compensation from Natural Gas Injection Promotion Programs The Company recognizes revenues from Natural Gas Injection Promotion Programs when the delivery of the gas is effective based on the price established in the applicable regulation, only to the extent that it is highly probable that a significant reversal will not occur and it is probable that the consideration will be collected, that is, as the procedure established by Government is formally complied with. Although the consideration Programs´ collection depends on the Argentine Government’s payment capacity that has incurred in important delays in the cancellation of the credits in the past, revenues are not adjusted for the effect of financing components, which is consistent with market practice. The recognition of income from Natural Gas Injection Promotion Programs is covered by IAS 20 since it involves a compensation as a result of the production increase committed. This item has been disclosed under Natural Gas Injection Promotion Programs under Other operating income, in the Consolidated Statement of Comprehensive Income. Furthermore, ítem Extroardinary Canon disclosed within Other operating expenses includes fiscal costs related to these Programs. 4.24.2 Interest income Interest income from financial assets at fair value through profit or loss is included into the result of changes in the fair value of those assets. Interest income from financial assets at amortized cost and financial assets at fair value through other comprehensive income are recognised in the statement of income. Interest income is calculated by using the effective interest rate to the gross carrying amount of a financial asset (without considering impairment provision), except for impaired financial assets, that is calculated by applying the effective interest rate to carrying amount net of impairment provision. 4.24.3 Dividends Dividends are received from financial assets measured at fair value through profit or loss or through other comprehensive income. Dividends are recognized as revenue when the right to receive payment has been established. This applies even if they are paid out of pre-acquisition profits. |
Income tax and minimum notional income tax | 4.25.1 Current and deferred income tax The tax expenses for the year include current and deferred tax. Tax is recognized in the income statement, except to the extent that it relates to items recognized in other comprehensive income or directly in equity, in which case, the tax is also recognized in other comprehensive income or directly in equity, respectively. The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the balance sheet. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions, where appropriate, on the basis of amounts expected to be paid to the tax authorities. Deferred income tax is recognized, using the liability method on temporary differences between the tax bases of assets and liabilities and their carrying amounts in the Consolidated Financial Statements. However, deferred tax liabilities are not recognized if they come from the initial recognition of goodwill; or if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at time of the transaction affects neither accounting nor taxable profit or loss. Deferred income tax assets are recognized only to the extent that it is probable that future taxable profit will be available and can be used against temporary differences. Deferred income tax is provided on temporary differences from investments in subsidiaries and associates, except for deferred income tax liability where the timing of the reversal of the temporary difference is controlled by the group and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred assets or liabilities are recognized on account of gains or losses from fiscal tax inflation which, pursuant to Law No. 27,541, are deferred and accounted for in subsequent fiscal periods (see Note 2.6.1.5). Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset the recognized amounts and when the deferred income tax assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where there is an intention to settle the balances on a net basis. Current and deferred tax assets and liabilities have not been discounted, and are stated at their nominal value. Income tax rates prevailing at year-end in Argentina (see Note 2.6.1), Venezuela, Ecuador, Bolivia, Spain and Uruguay are 30%, 50%, 25%, 25%, 25% and 25%, respectively. Additionally, a 3% surcharge is added to Ecuador’s income tax when the company’s shareholder residing in Ecuador is an entity established in a jurisdiction considered a tax haven under Ecuadorian laws. In Bolivia, payment of Bolivian-source income to beneficiaries outside Bolivia is levied with a 12.5% withholding income tax. Furthermore, and pursuant to the last tax reform passed in Ecuador and effective as from January 1, 2020, dividends distributed to foreign shareholders will be subject to a 10% withholding. Deferred tax assets and liabilities are measured using the tax rates expected to apply in the period when the asset is realized or the liability is settled. 4.25.2 Minimum notional income tax The Company assessed the minimum notional income tax until December 31, 2018, by applying the current 1% rate over the assets computable at the closing of the year. As this tax supplements the income tax, the Company does not assess it for the periods where no income is evidenced on the income tax, based on the case law established by the “Hermitage” decision (CSJN, June 15, 2010), which ruled on the unconstitutionality of this tax when tax losses are disclosed for the period. The Company’s tax obligation for each year will be the higher of the two taxes. If in a fiscal year, however, minimum notional income tax obligation exceeds income tax liability, the surplus will be computable as a payment in advance of income tax through the next ten years. Pursuant to section 76 of Law No. 27,430, the effectiveness of this tax has been abrogated for fiscal years beginning on or after January 1, 2019, without affecting the remaining term for computing any payments made in excess during its life as payments on account of income tax. As of the closing date hereof, the Company’s Management analyzed the receivable’s recoverability, and allowances are created in as long as it is estimated that the amounts paid for this tax will not be recoverable within the statutory limitation period taking into consideration the Company’s current business plans. The Company’s Management will evaluate the evolution of this recoverability in future fiscal years. |
Leases | In leases where the Company is a lessee (Note 18.1), a right-of-use asset and a lease liability are recognized on the date on which the underlying asset is available for use by the Company. At the commencement date the lease liability is measured at the present value of the payments that are not paid at that date, including: - fixed payments, less any lease incentive receivable - variable lease payments depending on an index or rate - amounts that the Company expects to pay under residual value guarantee - exercise price of a purchase option (if the Company is reasonably certain to exercise that option), and - penalty payments for terminating the lease, if the lease term reflects the Company exercising that option. Lease payments are discounted using the Company’s incremental borrowing rate, which is the rate the Company would have to pay to borrow over a similar term, security and conditions, the funds necessary to acquire an asset of a similar value to the right-of-use asset in a similar economic environment, or by using the interest rate implicit in the lease, if that rate can be readily determined. The lease liability is disclosed in “Lease liability” under “Trade and other payables”. Each lease payment is apportioned between the principal and the financial cost. The financial cost is charged to income over the term of the lease to produce a constant periodic interest rate on the remaining liability balance for each period. Right-of-use assets are measured at cost, which comprises: - the amount of the initial measurement of the lease liability - any lease payment made at or before the commencement date, less any lease incentive received - any initial direct cost, and - an estimate of costs to be incurred for decommissioning or restoring the underlying asset pursuant to the terms and conditions of the lease Right-of-use assets are depreciated using the straight-line method over the asset’s useful life or, if shorter, during the lease term. The Company recognizes lease payments associated with short-term leases (up to 12 months) and leases for which the underlying asset is of low value (IT equipment and office supplies) as an expense using the straight-line method over the lease term. Leases in which the Company, as a lessor, has transferred all risks and rewards incidental to ownership of the underlying asset are classified as financial leases (Note 18.2.1). Financial leases are recognized at the commencement date at the fair value of the leased property or, if lower, the present value of the minimum lease payments to be received. The corresponding lease rights, net of financial charges, are included in “Trade and other receivables”. Each lease payment received is allocated between income receivable and financial income. Financial income is recognized as a profit or a loss over the term of the lease to produce a constant periodic interest rate on the remaining liability balance for each period. Property under financial leases is derecognized if there is reasonable certainty that the Company will transfer its ownership at the end of the lease term. Leases in which the Company does not transfer a significant part of the risks and rewards incidental to ownership of the underlying asset are classified as operating leases. Revenues from associated leases are recognized in income using the straight-line method over the term of the lease (Note 18.2.2). The corresponding leased assets are included in the Consolidated Statement of Financial Position depending on their nature. |
2. REGULATORY FRAMEWORK (Tables
2. REGULATORY FRAMEWORK (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Regulatory Framework | |
Generating units in operation | In operation: Generator Generating unit Tecnology Power Applicable regime (2) CTG GUEMTG01 TG 100 MW Energy Plus Res. No. 1281/06 (1) CTG GUEMTV11 TV ≤100 MW SE Resolutions No. 1/19 CTG GUEMTV12 TV ≤100 MW SE Resolutions No. 1/19 CTG GUEMTV13 TV >100 MW SE Resolutions No. 1/19 Piquirenda PIQIDI 01-10 MG 30 MW SE Resolution No. 220/07 (1) CPB BBLATV29 TV >100 MW SE Resolutions No. 1/19 CPB BBLATV30 TV >100 MW SE Resolutions No. 1/19 CT Ing. White BBLMD01-06 MG 100 MW SEE Resolution No. 21/16 (1) CTLL LDLATG01 TG >50 MW SE Resolutions No. 1/19 CTLL LDLATG02 TG >50 MW SE Resolutions No. 1/19 CTLL LDLATG03 TG >50 MW SE Resolutions No. 1/19 CTLL LDLATG04 TG 105 MW SEE Res. 220/07 (75%), SEE Res. 1/19 (25%) CTLL LDLATG05 TG 105 MW SEE Resolution No. 21/16 (1) CTLL LDLATV01 TV 180 MW SE Resolution No. 220/07 (1) CTGEBA GEBATG01/TG02/TV01 CC >150 MW SE Resolutions No. 1/19 CTGEBA GEBATG03 TG 188 MW Energy Plus Res. No. 1281/06 (1) CTGEBA GEBATG04 TG >100 MW SE Resolutions No. 1/19 (3) Ecoenergía CERITV01 TV Renewable = 50 Energy Plus Res. N° 1281/06 (1) CT Parque Pilar PILBD01-06 MG 100 MW SE Resolutions No. 1/19 (3) CTB EBARTG01 - TG02 TG HI – Small 50<P≤120 SE Resolution No. 220/07 (1) HIDISA AGUA DEL TORO HI HI – Small 50<P≤120 SE Resolutions No. 1/19 HIDISA EL TIGRE HI HI – Small 50<P≤120 SE Resolutions No. 1/19 HIDISA LOS REYUNOS HB HB – Media 120<P≤300 SE Resolutions No. 1/19 HINISA NIHUIL I - II - III HI HI – Chica 50<P≤120 SE Resolutions No. 1/19 HPPL PPLEHI HI HI – Media 120<P≤300 SE Resolutions No. 1/19 P.E. M. Cebreiro CORTEO Eólica 100 MW Renovar (1) PEPE II PAMEEO Eólica 53 MW SEE Resolution No. 281/17 PEPE III BAHIEO Eólica 53 MW SEE Resolution No. 281/17 (1) (2) (3) |
Generating units in construction | In construction: Generator Generating unit Tecnology Applicable regime CTLL MG 15 MW SE Resolutions No. 1/19 CTGEBA CC 176 MW SE Resolution No. 287/17 CTB CC 280 MW SE Resolution No. 220/07 |
4. ACCOUNTING POLICIES (Tables)
4. ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies | |
Impacts of the adoption of new accounting standard | Operating lease commitments as of 12.31.2018 10.5 Discount using incremental borrowing rate of 58.16% as of 01.01.2019 (2.4) Exchange differences on translation (0.1) Lease liability recognised as of 01.01.2019 8 |
Property, plant and equipment estimated useful lives | Buildings: 50 years Substations: 35 years High voltage lines: 40 - 45 years Medium voltage lines: 35 - 45 years Low voltage lines: 30 - 40 years Transformer centrals: 25 - 35 years Meters: 25 years Vehicles: 5 years Furniture, fittings and communication equipment: 5- 20 years Computer equipment and software: 3 years Tools: 10 years Gas Plant and Pipeline: 20 years |
5. GROUP STRUCTURE (Tables)
5. GROUP STRUCTURE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Group Structure | |
Sale of subsidiary and areas | 12.31.2018 Sale price (2) 270 Book value of assets sold and costs associated with the transaction (226) Result for sale 44 Interests (1) 4 Income tax (22) Imputed in results 26 Other comprehensive income (loss) Reclasification exchange differences on translation 6 Income tax (2) Imputed in Other comprehensive income 4 Total comprehensive income 30 (1) Are exposed in "Financial income" in the consolidated statement of comprehensive income related to discontinued operations. (2) Sale price recorded as of December 31, 2018 arises from the financial statements denominated in pesos in accordance with IAS 29, and was translated into U.S. Dollars using the exchange rate as of that date. 12.31.2018 Sale price (1) 28 Book value of assets sold and costs associated with the transaction (28) Result for sale - (1) |
Consolidated statement of comprehensive income related to discontinued operations | As of December 31, 2018: Oil and gas Refining and distribution Eliminations Total Revenue 66 422 (90) 398 Cost of sales (33) (361) 91 (303) Gross profit 33 61 1 95 Selling expenses (2) (33) - (35) Administrative expenses (1) (4) - (5) Other operating income 1 6 - 7 Other operating expenses (6) (10) - (16) Result from the sale of share of profit and property, plant and equipment 44 - - 44 Operating income 69 20 1 90 Gain on monetary position, net 7 2 (1) 8 Finance income 4 1 - 5 Finance costs (1) - - (1) Other financial results (4) 22 - 18 Financial results, net 6 25 (1) 30 Income before income tax 75 45 - 120 Income tax (26) (14) - (40) Profit of the year from discontinued operations 49 31 - 80 Other comprehensive income (loss) Items that will not be reclassified to profit or loss Income tax (2) - - (2) Reclasification exchange differences on translation 6 - - 6 Exchange differences on translation 4 - - 4 Other comprehensive income of the year from discontinued operations 8 - - 8 Total comprehensive income of the year from discontinued operations 57 31 - 88 Oil and gas Refining and distribution Eliminations Total Total income of the year from discontinued operations attributable to: Owners of the company 47 31 - 78 Non - controlling interest 2 - - 2 49 31 - 80 Total comprehensive income of the year from discontinued operations attributable to: Owners of the company 53 31 - 84 Non - controlling interest 4 - - 4 57 31 - 88 As of December 31, 2017: Oil and gas Refining and distribution Eliminations Total Revenue 259 728 (296) 691 Cost of sales (251) (618) 297 (572) Gross profit 8 110 1 119 Selling expenses (8) (82) - (90) Administrative expenses (6) (19) - (25) Exploration expenses (1) - - (1) Other operating income 16 10 - 26 Other operating expenses (8) (13) - (21) Result from the sale of property, plant and equipment - (28) - (28) Operating income (loss) 1 (22) 1 (20) Financial income 1 1 - 2 Financial expenses - (1) - (1) Other financial results (10) (1) - (11) Financial results, net (9) (1) - (10) Income (loss) before income tax (8) (23) 1 (30) Income tax (28) 8 - (20) Profit (loss) of the year from discontinued operations (36) (15) 1 (50) Other comprehensive income (loss) Items that will not be reclassified to profit or loss Income tax 2 - - 2 Exchange differences on translation (16) - - (16) Other comprehensive loss of the year from discontinued operations (14) - - (14) Total comprehensive income (loss) of the year from discontinued operations (50) (15) 1 (64) Oil and gas Refining and distribution Eliminations Total Total income (loss) of the year from discontinued operations attributable to: Owners of the company (41) (15) 1 (55) Non - controlling interest 5 - - 5 (36) (15) 1 (50) Total comprehensive income (loss) of the year from discontinued operations attributable to: Owners of the company (48) (15) 1 (62) Non - controlling interest (2) - - (2) (50) (15) 1 (64) |
Consolidated statement of cash flows related to discontinued operations | 12.31.2018 12.31.2017 Net cash (used in) generated by operating activities (46) 87 Net cash used in investing activities - (50) Net cash generated by (used in) financing activities 42 (31) (Decrease) increase in cash and cash equivalents from discontinued operations (4) 6 Cash and cash equivalents at the begining of the year 6 4 Loss on net monetary position generated by cash and cash equivalents (2) (4) (Decrease) increase in cash and cash equivalents (4) 6 Cash and cash equivalents at the end of the year - 6 |
Subsidiaries information | 12.31.2019 12.31.2018 Company Country Main activity Direct and indirect participation % Direct and indirect participation % Corod Argentina Oil 100.00% 100.00% CPB Argentina Generation 100.00% 100.00% CPB Energía S.A. Argentina Generation 100.00% 100.00% EcuadorTLC Ecuador Oil 100.00% 100.00% Edenor (1)(7) Argentina Distribution of energy 56.32% 52.18% Enecor S.A. Argentina Transportation of electricity 69.99% 69.99% HIDISA Argentina Generation 61.00% 61.00% HINISA Argentina Generation 52.04% 52.04% PACOSA Argentina Trader 100.00% 100.00% PEA (2) Argentina Generation - 100.00% PEB Bolivia Investment 100.00% 100.00% PACOGEN Argentina Investment 100.00% 100.00% PEFM (3) Argentina Generation - 100.00% Petrobras Energía Colombia Gran Cayman (4) Colombia Oil - 100.00% Petrobras Energía Ecuador Gran Cayman Investment 100.00% 100.00% Energía Operaciones ENOPSA S.A. Ecuador Oil 100.00% 100.00% Petrolera San Carlos S.A. Venezuela Oil 100.00% 100.00% PHA (5) Argentina Investment 100.00% 100.00% PISA Uruguay Investment 100.00% 100.00% PP Argentina Investment 100.00% 100.00% PPSL (6) Spain Investment - 100.00% TGU Uruguay Gas transportation 100.00% 100.00% Transelec Argentina Investment 100.00% 100.00% Trenerec Energía Bolivia S.A. Bolivia Investment 100.00% 100.00% Trenerec S.A. Ecuador Investment 100.00% 100.00% (1) Corresponds to effective interest considering the treasury shares in Edenor´s effect (54.3664% nominal interest) (2) On May 29, 2019, PEA’s Shareholders’ Meetings resolved to change its corporate name to CTB. In the month of June 2019, the Company sold to PACOGEN and YPF 48% and 50%, respectively, of its interest in CTB, whereas PP sold to PACOGEN 2% of its interest in CTB. (3) See Note 5.1.1.2. (4) Liquidated in January 2019. (5) On March 28, 2019, the Company approved PHA’s international address change from Madrid (Spain), to the Autonomous City of Buenos Aires (Republic of Argentina), and on September 20, 2019, the change of jurisdiction was registered with the Public Registry. (6) Liquidated in December 2019. (7) As of December 31, 2019, the quotation of Edenor's ordinary shares and ADR published on the BCBA and the NYSE was $ 24.05 and U$S 6.26 per share, respectively, granting to Pampa (direct and indirect) ownership an approximate stake market value of U$S 149 million. It should be noted that, as of December 31, 2019, participation in Edenor does not exceed its recoverable value. |
Summary statement of financial position for subsidiaries with significant non-controlling interest | 12.31.2019 12.31.2018 Non Current Total non current assets 1,696 1,679 Borrowings 137 191 Other non current liabilities 460 474 Total non current liabities 597 665 Current Cash and cash equivalents 7 1 Other current assets 292 363 Total current assets 299 364 Borrowings 28 29 Other current liabilities 383 528 Total current liabilities 411 557 Total equity 988 821 Non-controlling interest 451 396 |
Summary statement of comprehensive income (loss) for subsidiaries with significant non-controlling interest | 12.31.2019 12.31.2018 12.31.2017 Revenue 1,502 1,484 1,050 Depreciation (77) (68) (57) Interest income 20 18 12 Interest expense (113) (132) (68) Profit for the year before tax 381 164 148 Income tax (178) (50) (14) Profit for the year 203 114 134 Other comprehensive loss - (1) - Total comprehensive profit of the year 203 113 134 Income of the year attributable to non-controlling interest 98 55 65 Other comprehensive income of the year attributable to non-controlling interest - (1) - Comprehensive income of the year attributable to non-controlling interest 98 54 65 |
Summary statement of cash flow for subsidiaries with significant non controlling interest | 12.31.2019 12.31.2018 12.31.2017 Net cash generated by operating activities 170 255 78 Net cash used in investing activities (86) (221) (63) Net cash used in financing activities (85) (56) (13) (Decrease) increase in cash and cash equivalents (1) (22) 2 Cash and cash equivalents at the begining of the year 1 3 3 Loss on net monetary position generated by cash and cash equivalents 7 19 2 Cash and cash equivalents at the end of the year 7 - 7 |
Investments in associates and joint ventures information | Information about the issuer Main activity Date Share capital Profit (loss) of the period / year Equity Direct and indirect participation % Associates Refinor Refinery 09.30.2019 2 (3) 57 28.50% OCP (1) Investment 12.31.2019 100 22 266 15.91% TGS (2)(5) Transport of gas 12.31.2019 13 214 803 27.193% Joint ventures CIESA (2) Investment 12.31.2019 11 109 405 50.00% Citelec (3) Investment 12.31.2019 9 38 176 50.00% Greenwind Generation 12.31.2019 - (1) (11) 50.00% CTB (4) Generation 12.31.2019 143 40 227 50.00% (1) The Company holds an indirect interest of 15.91% through PEB. (2) The Company holds a direct and indirect interest of 50% in CIESA, a company that holds a 51% interest in the share capital of TGS. therefore, the Company has an indirect participation of 25.50% in TGS. The Company holds a direct and indirect interest of 1.693% in TGS. (3) Through a 50% interest, the company joint controls Citelec, company that controlled Transener with 52.65% of the shares and votes. As a result, the Company has an indirect participation of 26.33% in Transener. (4) The Company holds an indirect interest of 50% through PACOGEN. (5) As of December 31, 2019, the quotation of TGS's ordinary shares and ADR published on the BCBA and the NYSE was $ 108.65 and U$S 7.17 per share, respectively, granting to Pampa (direct and indirect) ownership an approximate stake market value of U$S 306 million. |
Interest in associates and joint ventures | 12.31.2019 12.31.2018 Disclosed in non-current assets Associates Refinor 20 25 OCP 33 35 TGS 21 - 74 60 Joint ventures CIESA 235 259 Citelec 88 88 CTB 114 - 437 347 511 407 Disclosed in non-current liabilities Greenwind (1) 4 4 4 4 (1) |
Result from interests in associates and joint ventures | 12.31.2019 12.31.2018 12.31.2017 Associates Oldelval - 3 1 Refinor (3) (4) (3) OCP 21 35 - TGS 1 - - 19 34 (2) Joint ventures CIESA 50 74 25 CTB 13 - - Citelec 19 21 27 Greenwind - (11) (2) 82 84 50 |
Evolution of interests in associates and joint ventures | Note 12.31.2019 12.31.2018 12.31.2017 At the beginning of the year 403 315 255 Reclassifications (1) (16) - 12 Dividends 17 (75) (19) - Decreases - (10) - Increases 108 - - Share of profit 101 118 48 Other comprehensive loss - (1) - Exchange differences on translation (14) - - At the end of the year 507 403 315 (1) In 2019, mainly corresponds to the financial credit with OCP acquired in the transaction with AGIP (see Note 5.3.6.2), and in 2017 corresponds to the deconsolidation for sale of the interest in Greenwind. |
Consideration transferred and the fair value of the assets acquired and the liabilities assumed | The following table details the consideration transferred and the fair value of the assets acquired and the liabilities assumed by CTB as of June 26, 2019: in million U$S Total consideration transferred (1) (272) Financial assets at fair value 16 Property, plant and equipment 477 Inventories 8 VRDs (229) Fair value of net assets 272 (1) The following table details the consideration transferred and the fair value of the assets acquired and the profit recorded by PEB as of June 20, 2019: in million U$S Acquisition cost (1) (0.4) Contingent consideration (2) (0.1) Total consideration (0.5) Share value of the interest in the fair value of associates’s identifiable assets and liabilities 9.0 Financial credit with OCP 14.2 Dividends to be received 2.5 Assets fair value 25.7 Profit (3) 25.2 (1) Including expenses paid by PEB to the Ecuadorian Government (Ministry of the Environment) of U$S 0.1 million for the granting of the authorization to transfer the shares held by AGIP and other advisory expenses related to the transaction. (2) Contingent consideration calculated based on the estimated of the likelihood of collection of the financial credit with OCP prior to maturity. (3) Disclosed under “Share of profit (loss) from associates and joint ventures” |
Participation in exploration and production of oil and gas areas | Participation Name Note Location Direct Indirect Operator Duration Up To Argentine production Río Neuquén Río Negro and Neuquén 31.43% and 33.07% - YPF 2027/2051 Sierra Chata Neuquén 45.55% - PAMPA 2053 El Mangrullo Neuquén 100.00% - PAMPA 2053 La Tapera - Puesto Quiroga Chubut 35.67% - Tecpetrol 2027 El Tordillo Chubut 35.67% - Tecpetrol 2027 Aguaragüe Salta 15.00% - Tecpetrol 2023/2027 Gobernador Ayala Mendoza 22.51% - Pluspetrol 2036 Anticlinal Campamento Neuquén 15.00% - Oilstone 2026 Estación Fernández Oro Río Negro 15.00% - YPF 2026 Río Limay este (Ex Senillosa) (4) Neuquén 85.00% - PAMPA 2040 Veta Escondida y Rincón de Aranda Neuquén 55.00% - PAMPA 2027 Rincón del Mangrullo Neuquén 50.00% - YPF 2052 Foreign (1) Oritupano - Leona Venezuela - 22.00% PDVSA 2025 Acema Venezuela - 34.49% PDVSA 2025 La Concepción Venezuela - 36.00% PDVSA 2025 Mata Venezuela - 34.49% PDVSA 2025 Argentine exploration Parva Negra Este (2) Neuquén 42.50% - PAMPA 2019 Chirete (3) Salta 50.00% - High Luck Group Limited 2019 Río Atuel Mendoza 33.33% - Petrolera El Trebol 2020 Borde del Limay (4) Neuquén 85.00% - PAMPA 2015 Los Vértices (4) Neuquén 85.00% - PAMPA 2015 Las Tacanas Norte Neuquén 90.00% - PAMPA 2023 (1) (2) (3) (4) |
Exploratory well costs | 12.31.2019 12.31.2018 12.31.2017 At the beginning of the year 19 12 16 Increases 30 8 8 Transferred to development (11) - (8) Loss of the year (5) (1) (1) At the end of the year 33 19 15 Number of wells at the end of the year 9 7 7 |
6. RISKS (Tables)
6. RISKS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Risks | |
Exposure to the price risk | Increase of the result for the year Financial assets 12.31.2019 12.31.2018 Shares 2 1 Government securities 11 30 Investment funds 24 11 Variation of the result of the year 37 42 |
Borrowings classified by interest rate | 12.31.2019 12.31.2018 Fixed interest rate: Argentinian pesos 143 15 U.S dollar 1,687 1,861 Subtotal loans granted at a fixed interest rate 1,830 1,876 Floating interest rates: Argentinian pesos 10 108 U.S dollar 64 131 Subtotal loans granted at a floating interest rate 74 239 Non interest accrued U.S dollar 17 30 Argentinian pesos 26 32 Subtotal no interest accrued 43 62 Total borrowings 1,947 2,177 |
Expected credit loss on trade receivables and financial assets rates | 12.31.2019 Undue 30 days 60 days 90 days 120 days 150 days 180 days + 180 days Generation 0.10% 0.35% 1.99% 2.95% 4.03% 5.59% 9.79% 16.13% Oil and Gas 0.53% 1.49% 9.45% 18.03% 18.50% 18.81% 18.90% 18.92% Distribution of energy 3.00% 3.00% 8.00% 18.00% 20.00% 45.00% 72.00% 72.00% Petrochemicals 0.39% 0.73% 6.88% 16.66% 25.32% 29.59% 30.97% 43.05% Holding 1.85% 2.81% 6.84% 17.15% 26.77% 43.21% 49.89% 65.29% 12.31.2018 Undue 30 days 60 days 90 days 120 days 150 days 180 days + 180 days Generation 0.04% 0.09% 2.62% 3.39% 9.37% 13.56% 19.82% 28.88% Oil and Gas 2.20% 4.42% 11% 20.42% 42.85% 47.32% 49.20% 56.32% Distribution of energy 8.00% 8.00% 12.00% 19.00% 26.00% 59.00% 69.00% 69.00% Petrochemicals 0.03% 0.08% 1.41% 4.98% 11.52% 20.36% 24.91% 25.24% Holding 0.96% 1.25% 2.03% 2.85% 19.86% 26.41% 32.95% 32.97% In 2017 fiscal year, the calculation of the loss allowance for trade receivables and other receivables was assessed based on the incurred loss model, and considered the existence of objective evidence of default for the recognition of losses in the statement of comprehensive income. The expected credit loss as of January 1, 2018 (IFRS 9 amended adoption date) was determined based on credit loss rates calculated for days past due detailed below: Rates Undue 30 days 60 days 90 days 120 days 150 days 180 days +180 days Distribution of energy 8.00% 8.00% 12.00% 19.00% 26.00% 59.00% 69.00% 69.00% Rest of business segments 0.32% 0.93% 8.11% 19.61% 35.69% 45.63% 59.00% 63.01% |
Loss allowance for financial assets and other receivables | Financial assets Other receivables Loss allowance under IAS 39 as of 12.31.2017 22 7 Adjustment to the opening balance of retained earnings 4 (1) Loss allowance calculated under IFRS 9 as of 01.01.2018 26 6 |
Liquidity index | 12.31.2019 12.31.2018 Current assets 1,362 1,521 Current liabilities 854 1,182 Index 1.59 1.29 |
Financial liabilities contractual undiscounted cash flows maturity | As of December 31, 2019 Trade and other payables (1) Borrowings Total Less than three months - 95 95 Three months to one year 454 188 642 One to two years 11 288 299 Two to five years 70 834 904 More than five years 9 1,233 1,242 Total 544 2,638 3,182 As of December 31, 2018 Trade and other payables Borrowings Total Less than three months 331 112 443 Three months to one year 534 318 852 One to two years 9 242 251 Two to five years 3 892 895 More than five years - 977 977 Total 877 2,541 3,418 (1) Includes Lease Liabilities (see Note 18.1.2) |
Financial leverage ratios | 12.31.2019 12.31.2018 Total borrowings 1,947 2,177 Less: cash and cash equivalents, and financial assets at fair value through profit and loss (590) (646) Net debt 1,357 1,531 Total capital attributable to owners 3,274 2,897 Leverage ratio 41.45% 52.85% |
7. SEGMENT INFORMATION (Tables)
7. SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of operating segments [abstract] | |
Operating segments | Consolidated profit and loss information for the year ended December 31, 2019 Generation Distribution Oil and gas Petrochemicals Holding and others Eliminations Consolidated Revenue 819 1,502 174 321 20 - 2,836 Intersegment revenue - - 270 - - (270) - Cost of sales (466) (1,225) (313) (298) - 270 (2,032) Gross profit 353 277 131 23 20 - 804 Selling expenses (3) (122) (12) (9) (2) - (148) Administrative expenses (36) (65) (47) (4) (22) - (174) Exploration expenses - - (9) - - - (9) Other operating income 9 10 8 4 9 - 40 Other operating expenses (11) (43) (11) (9) (12) - (86) Impairment of property, plant and equipment (52) - (10) - - - (62) Share of profit from associates and joint ventures 13 - 21 - 67 - 101 Agreement on the regularization of obligations - 285 - - - - 285 Operating income 273 342 71 5 60 - 751 Gain on net monetary position, net - 187 - - - - 187 Finance income 51 20 18 1 7 (1) 96 Finance costs (82) (112) (94) (8) (4) 1 (299) Other financial results 86 (62) 84 18 (13) - 113 Financial results, net 55 33 8 11 (10) - 97 Profit before income tax 328 375 79 16 50 - 848 Income tax (80) (178) (16) (5) 231 - (48) Profit for the year 248 197 63 11 281 - 800 Depreciation and amortization 71 79 112 1 - - 263 Consolidated profit and loss information for the year ended December 31, 2019 Generation Distribution Oil and gas Petrochemicals Holding and others Eliminations Consolidated Total profit attributable to: Owners of the company 239 98 63 11 281 - 692 Non - controlling interest 9 99 - - - - 108 Consolidated statement of financial position as of December 31, 2019 Assets 1,472 1,480 1,261 136 1,527 (192) 5,684 Liabilities 1,226 1,792 465 122 (160) (170) 3,275 Additional consolidated information as of December 31, 2019 Increases in property, plant and equipment, intangibles assets and right-of-use assets 240 173 191 4 3 - 611 Net book values of property, plant and equipment 1,152 1,691 612 18 34 - 3,507 Consolidated profit and loss information for the year ended December 31, 2018 Generation Distribution Oil and gas Petrochemicals Holding and others Eliminations Consolidated Revenue 604 1,484 458 338 36 - 2,920 Intersegment revenue 2 - 63 - - (65) - Cost of sales (273) (1,136) (287) (334) - 63 (1,967) Gross profit (loss) 333 348 234 4 36 (2) 953 Selling expenses (1) (134) (19) (13) (4) - (171) Administrative expenses (41) (76) (56) (6) (27) - (206) Exploration expenses - - (1) - - - (1) Other operating income 11 9 141 5 15 - 181 Other operating expenses (17) (44) (114) (20) (6) 1 (200) Impairment of property, plant and equipment - - - (32) - - (32) Share of profit (loss) from joint ventures and associates (11) - 37 - 92 - 118 Income from the sale of associates - - 28 - - - 28 Operating income (loss) 274 103 250 (62) 106 (1) 670 Gain on net monetary position 233 226 107 49 12 2 629 Finance income 52 18 15 1 14 (1) 99 Finance costs (85) (132) (79) (15) (6) 1 (316) Other financial results (365) (50) (512) (39) 108 - (858) Financial results, net (165) 62 (469) (4) 128 2 (446) Profit (loss) before income tax 109 165 (219) (66) 234 1 224 Income tax (3) (49) 57 12 (34) - (17) Profit (loss) for the year from continuing operations 106 116 (162) (54) 200 1 207 Profit for the year from discontinued operations - - 49 - 31 - 80 Profit (loss) for the year 106 116 (113) (54) 231 1 287 Depreciation and amortization 66 69 92 6 1 - 234 Consolidated profit and loss information for the year ended December 31, 2018 Generation Distribution Oil and gas Petrochemicals Holding and others Eliminations Consolidated Total profit (loss) attributable to: Owners of the company 100 61 (115) (54) 231 1 224 Non - controlling interest 6 55 2 - - - 63 Consolidated statement of financial position as of December 31,2018 Assets 1,414 2,133 1,237 153 872 (137) 5,672 Liabilities 1,054 1,241 1,273 198 247 (136) 3,877 Additional consolidated information as of December 31, 2018 Increases in property, plant and equipment 235 227 192 4 7 - 665 Net book values of property, plant and equipment 1,036 1,657 554 15 54 - 3,316 Consolidated profit and loss information for the year ended December 31, 2017 Generation Distribution Oil and gas Petrochemicals Holding and others Eliminations Consolidated Revenue 351 1,050 443 314 17 - 2,175 Intersegment revenue 2 - 19 - - (21) - Cost of sales (195) (799) (310) (290) (1) 21 (1,574) Gross profit 158 251 152 24 16 - 601 Selling expenses (4) (95) (17) (12) - 1 (127) Administrative expenses (32) (66) (54) (16) (30) - (198) Exploration expenses - - (2) - - - (2) Other operating income 19 4 110 3 13 - 149 Other operating expenses (9) (33) (38) (10) (13) - (103) Share of profit (loss) from joint ventures and associates (2) - 1 - 49 - 48 Operating income (loss) 130 61 152 (11) 35 1 368 Gain (loss) on net monetary position 17 145 (18) 2 158 - 304 Finance income 39 12 6 - 7 (2) 62 Finance costs (69) (69) (78) (10) (8) 2 (232) Other financial results (34) 1 (93) (6) 32 - (100) Financial results, net (47) 89 (183) (14) 189 - 34 Profit (loss) before income tax 83 150 (31) (25) 224 1 402 Income tax (4) (12) 24 19 (1) - 26 Profit (loss) for the year from continuing operations 79 138 (7) (6) 223 1 428 (Loss) profit for the year from discontinued operations - - (35) - (16) 1 (50) Profit (loss) for the year 79 138 (42) (6) 207 2 378 Depreciation and amortization 54 58 87 4 2 - 205 Consolidated profit and loss information for the year ended December 31, 2017 Generation Distribution Oil and gas Petrochemicals Holding and others Eliminations Consolidated Total profit (loss) attributable to: Owners of the Company 75 73 (62) (6) 207 2 289 Non - controlling interest 4 65 20 - - - 89 Consolidated statement of financial position as of December 31,2017 Assets 1,115 1,972 1,154 141 1,475 (200) 5,657 Liabilities 333 1,166 444 94 1,850 (200) 3,687 Additional consolidated information as of December 31, 2017 Increases in property, plant and equipment 275 225 140 5 12 - 657 |
8. REVENUE (Tables)
8. REVENUE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue [abstract] | |
Revenue | 12.31.2019 12.31.2018 12.31.2017 Energy sales to the Spot Market 251 274 231 Energy sales by supply contracts 285 278 114 Fuel self-supply 281 51 4 Other sales 2 1 2 Generation sales subtotal 819 604 351 Energy sales 1,496 1,477 1,042 Right of use of poles 5 5 6 Connection and reconnection charges 1 2 2 Distribution of energy sales subtotal 1,502 1,484 1,050 Oil, gas and liquid sales 171 454 418 Other sales 3 4 25 Oil and gas sales subtotal 174 458 443 Technical assistance services and administartion sales 20 36 17 Holding and others subtotal 20 36 17 Petrochemicals sales 321 338 314 Petrochemicals sales subtotal 321 338 314 Total revenue 2,836 2,920 2,175 |
9. COST OF SALES (Tables)
9. COST OF SALES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Cost Of Sales | |
Cost of sales | 12.31.2019 12.31.2018 12.31.2017 Inventories at the beginning of the year 137 113 164 Plus: Charges for the year Purchases of inventories, energy and gas 1,305 1,224 874 Salaries and social security charges 163 181 202 Benefits to employees 9 6 7 Accrual of defined benefit plans 7 4 7 Works contracts, fees and compensation for services 103 98 84 Depreciation of property, plant and equipment 232 206 195 Intangible assets amortization 7 7 1 Right-of-use assets amortization 2 - - Transport of energy 4 4 3 Transportation and freights 18 14 3 Consumption of materials 48 64 29 Penalties 25 56 11 Maintenance 27 24 18 Canons and royalties 59 74 56 Environmental control 3 5 3 Rental and insurance 21 13 11 Surveillance and security 6 6 6 Taxes, rates and contributions 4 5 3 Other 5 - 10 Subtotal 2,048 1,991 1,523 Gain on monetary position 1 - - Less: Inventories at the end of the year (153) (137) (113) Total cost of sales 2,032 1,967 1,574 |
10. OTHER ITEMS OF THE STATEM_2
10. OTHER ITEMS OF THE STATEMENT OF COMPREHENSIVE INCOME (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Items Of Statement Of Comprehensive Income | |
Selling expenses | 12.31.2019 12.31.2018 12.31.2017 Salaries and social security charges 22 26 27 Benefits to employees 1 - - Accrual of defined benefit plans 1 - 1 Fees and compensation for services 29 30 26 Compensation agreements (1) 2 6 Depreciation of property, plant and equipment 9 9 3 Right-of-use assets amortization 1 - - Taxes, rates and contributions 25 33 28 Communications 6 7 8 Penalties 22 28 12 Net impairment losses on financial assets 21 28 11 Transport 9 6 4 Other 3 2 1 Total selling expenses 148 171 127 |
Administrative expenses | 12.31.2019 12.31.2018 12.31.2017 Salaries and social security charges 62 81 77 Benefits to employees 8 5 5 Accrual of defined benefit plans 8 1 6 Fees and compensation for services 52 68 53 Compensation agreements - 3 20 Directors' and Syndicates' fees 7 5 4 Depreciation of property, plant and equipment 14 12 6 Consumption of materials 3 4 3 Maintenance 2 2 2 Transport and per diem 2 2 2 Rental and insurance 5 6 6 Surveillance and security 2 5 4 Taxes, rates and contributions 2 8 4 Communications 2 2 2 Right-of-use assets amortization 2 - - Institutional advertising and promotion - 1 2 Other 3 1 2 Total administrative expenses 174 206 198 |
Exploration expenses | 12.31.2019 12.31.2018 12.31.2017 Geological and geophysical expenses 4 - 1 Decrease in unproductive wells 5 1 1 Total exploration expenses 9 1 2 |
Other operating income and expenses | Other operating income Note 12.31.2019 12.31.2018 12.31.2017 Compensation for transaction agreement in Ecuador (1) - 99 - Recovery of doubtful accounts - - 4 Insurrance recovery 6 - - Natural Gas Surplus Injection Promotion Program 4.24.1.1 - 23 101 Commissions on municipal tax collections 2 2 1 Services to third parties 13 13 8 Profit for property, plant and equipment sale - 3 - Dividends received 1 1 1 Reversal of contingencies and taxes payables (2) 1 4 24 Other 17 36 10 Total other operating income 40 181 149 Other operating expenses Provision for contingencies (28) (35) (20) Decrease in property, plant and equipment (1) (6) (1) Allowance for tax credits (4) - (1) Tax on bank transactions (29) (30) (27) Cost for services provided to third parties (2) (2) (2) Compensation agreements - - (2) Donations and contributions (2) (2) (2) Institutional promotion (2) (3) (3) Extraordinary canon - (3) (14) Contingent consideration - - (8) Onerous contract (Ship or Pay) - (7) (4) Tax contingencies in Ecuador (1) - (69) - Other (18) (43) (19) Total other operating expenses (86) (200) (103) (1) Pursuant to Agreement executed on March 19, 2018 between the Republic of Ecuador and the Plaintiff Partners, including EcuadorTLC (see Note 5.6.1). Figures recorded as of December 31, 2018 arises from the Consolidated Financial Statements denominated in pesos in accordance with IAS 29, and was translated into U.S. dollars using the exchange rate as of that date. (2) In 2017, includes gains on releasing tax fines and reducing compensatory interests, related to benefits for the adhesion to the regularization regime (moratorium) (see Note 2.6.4). |
Financial results | 12.31.2019 12.31.2018 12.31.2017 Gain on monetary position, net 187 629 304 Finance income Commercial interest 61 58 43 Financial interest 22 34 14 Other interest 13 7 5 Total finance income 96 99 62 Finance cost Commercial interest (52) (78) (45) Fiscal interest (6) (8) (11) Financial interest (1) (227) (210) (162) Other interest (10) (15) (10) Other financial expenses (4) (5) (4) Total financial expenses (299) (316) (232) Other financial results Foreign currency exchange difference, net (75) (863) (156) Changes in the fair value of financial instruments 91 64 62 Gains (losses) from present value measurement 54 (74) (6) Other financial results of RDSA 2 13 - Results for the repurchase of corporate bonds 27 2 - Other financial results 14 - - Total other financial results 113 (858) (100) Total financial results, net 97 (446) 34 |
Income tax benefit expense | The breakdown of income tax charge is: 12.31.2019 12.31.2018 12.31.2017 Current tax 70 39 55 Deferred tax (57) (19) (72) Other comprehensive income - 1 - Difference in the estimate of previous fiscal year income tax and the income tax statement 1 (4) (12) Direct charges for income tax - - 3 Optional tax revaluation 34 - - Total loss (gain) income tax 48 17 (26) Below is a reconciliation between income tax expense and the amount resulting from application of the tax rate on the income before taxes: 12.31.2019 12.31.2018 12.31.2017 Profit before income tax 848 224 402 Current tax rate 30% 30% 35% Result at the tax rate 254 67 141 Share of profit of associates and joint ventures (25) (3) (117) Non-taxable results (38) 7 (59) Effects of exchange differences and traslation effect of property, plant and equipment and intangible assets, net 93 - - Adjustment of valuation of property, plant and equipment and intangible assets (202) - - Gain (loss) on monetary position, net 17 (38) 66 Effect of tax rate change in deferred tax 37 (26) (21) Adjustment effect for tax inflation 129 - - Payment of optional tax revaluation 34 - - Special tax, revaluation of property, plant and equipment (169) - - Difference in the estimate of previous fiscal year income tax and the income tax statement (86) 4 (20) Deferred tax not previously recognized - 4 (31) Non-deductible cost - - 9 Non-deductible provisions - - 5 Other 4 2 1 Total loss (gain) income tax 48 17 (26) |
Consolidated accumulated tax losses | Fiscal year generation Fiscal year prescription 12.31.2019 12.31.2018 2015 2020 - 3 2016 2021 4 18 2017 2022 3 4 2018 2023 38 27 2019 2024 66 - Recognized Tax loss-carryforwards 111 52 |
11. NON-FINANCIAL ASSETS AND _2
11. NON-FINANCIAL ASSETS AND LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Non-financial Assets And Liabilities | |
Changes in property plant and equipment | Original values Type of good At the beginning Increases Impairment Transfers (1) Decreases Traslation effect At the end Land 22 - - - (8) - 14 Buildings 207 1 (8) 4 (1) (1) 202 Equipment and machinery 1,051 1 (90) 297 (5) - 1,254 High, medium and low voltage lines 1,010 3 - 72 (4) (32) 1,049 Substations 365 - - 14 - (12) 367 Transforming chamber and platforms 208 4 - 15 (1) (7) 219 Meters 209 1 - 23 - (7) 226 Wells 562 24 - 94 (8) - 672 Mining property 267 - (14) - - - 253 Vehicles 22 1 - - - (1) 22 Furniture and fixtures and software equipment 67 4 - 4 - (1) 74 Communication equipments 15 - - - - - 15 Materials and spare parts 32 19 - (14) - - 37 Distribution storage center 10 - - - (10) - - Petrochemical industrial complex 15 - - (1) - - 14 Work in progress 783 510 - (487) (3) (11) 792 Advances to suppliers 19 23 - (23) - (1) 18 Other goods 4 - - 2 - - 6 Total at 12.31.2019 4,868 591 (112) - (40) (73) 5,234 Total at 12.31.2018 4,317 665 (56) - (58) - 4,868 (1) Depreciation Net book values Type of good At the beginning Decreases Impairment For the year Traslation effect At the end At the end At 12.31.2018 Land - - - - - - 14 22 Buildings (74) 1 5 (7) - (75) 127 133 Equipment and machinery (384) 4 41 (72) - (411) 843 667 High, medium and low voltage lines (323) 4 - (35) 10 (344) 705 687 Substations (105) - - (13) 3 (115) 252 260 Transforming chamber and platforms (57) - - (8) 2 (63) 156 151 Meters (80) - - (10) 3 (87) 139 129 Wells (321) - - (65) - (386) 286 241 Mining property (119) - 4 (29) - (144) 109 148 Vehicles (16) - - (5) - (21) 1 6 Furniture and fixtures and software equipment (48) - - (9) - (57) 17 19 Communication equipments (10) - - - - (10) 5 5 Materials and spare parts (2) - - (1) - (3) 34 30 Distribution storage center (2) 3 - - - 1 1 8 Petrochemical industrial complex (7) - - (1) - (8) 6 8 Work in progress - - - - - - 792 783 Advances to suppliers - - - - - - 18 19 Other goods (4) - - - - (4) 2 - Total at 12.31.2019 (1,552) 12 50 (255) 18 (1,727) 3,507 Total at 12.31.2018 (1,358) 9 24 (227) - (1,552) 3,316 |
Changes in intangible assets | Original values Type of good At the beginning Traslate Effect At the end Concession agreements 272 (2) 270 Goodwill 35 - 35 Intangibles identified in acquisitions of companies 7 - 7 Total at 12.31.2019 314 (2) 312 Total at 12.31.2018 314 - 314 Depreciation Type of good At the beginning For the year At the end Concession agreements (151) (8) (159) Intangibles identified in acquisitions of companies (2) - (2) Total at 12.31.2019 (153) (8) (161) Total at 12.31.2018 (146) (7) (153) Net book values Type of good At the end At 12.31.2018 Concession agreements 111 121 Goodwill 35 35 Intangibles identified in acquisitions of companies 5 5 Total at 12.31.2019 151 Total at 12.31.2018 161 |
Deferred tax assets and liabilities | 12.31.2018 Profit (loss) Gain on monetary position, net 12.31.2019 Tax loss carryforwards 52 59 - 111 Trade and other receivables 14 (1) - 13 Trade and other payables 52 (37) (2) 13 Salaries and social security payable 1 1 - 2 Defined benefit plans 9 (2) - 7 Provisions 32 7 - 39 Taxes payable 6 (6) - - Adjustment for tax inflation - 8 - 8 Other 2 (2) - - Deferred tax asset 168 27 (2) 193 Property, plant and equipment (334) (55) 5 (384) Adjustment for tax inflation - (99) - (99) Investments in companies (19) 11 - (8) Intangible assets (193) 175 5 (13) Inventory - (10) - (10) Trade and other receivables (9) 5 - (4) Financial assets at fair value through profit and loss (9) (2) - (11) Cash and cash equivalents - - - - Borrowings (3) 3 - - Taxes payable - (4) - (4) Other (6) 6 - - Deferred tax liabilities (573) 30 10 (533) 12.31.2017 Profit (loss) Other comprehensive income (loss) 12.31.2018 Tax los-carryforwards 64 (12) - 52 Trade and other receivables 4 10 - 14 Derivative financial instruments - - - - Financial assets at fair value through profit and loss - - - - Trade and other payables 46 6 - 52 Salaries and social security payable - 1 - 1 Defined benefit plans 11 (3) 1 9 Provisions 29 3 - 32 Taxes payable 7 (1) - 6 Liabilities associated to assets classified as held for sale 14 (14) - - Other 2 - - 2 Deferred tax asset 177 (10) 1 168 Property, plant and equipment (443) 108 - (335) Investments in companies (52) 35 (2) (19) Intangible assets (2) (190) - (192) Trade and other receivables (27) 17 - (10) Financial assets at fair value through profit and loss (3) (6) - (9) Borrowings (5) 2 - (3) Assets classified as held for sale (33) 33 - - Other (4) (1) - (5) Deferred tax liabilities (569) (2) (2) (573) |
Net deferred tax assets and liabilities | 12.31.2019 12.31.2018 Deferred tax asset 28 2 Deferred tax liabilities (368) (407) Deferred tax liabilities, net (340) (405) |
Inventories | 12.31.2019 12.31.2018 Materials and spare parts 95 94 Advances to suppliers 21 2 In process and finished products 37 40 Stock crude oil - 1 Total 153 137 |
Provisions | 12.31.2019 12.31.2018 Non-Current Provisions for contingencies 123 125 Asset retirement obligation and dismantling of wind turbines 20 20 Environmental remediation 1 1 Other provisions 1 - 145 146 Current Provisions for contingencies 16 17 Asset retirement obligation and dismantling of wind turbines 2 2 Environmental remediation 2 4 Other provisions - - 20 23 |
Changes in provisions | 12.31.2019 For contingencies Asset retirement obligation and dismantling of wind turbines For environmental remediation At the beginning of the year 142 22 5 Increases 41 3 - Decreases (10) - (2) Exchange differences on translation (4) - - Gain on monetary position, net (17) - - Reversal of unused amounts (13) (3) - At the end of the year 139 22 3 12.31.2018 For contingencies Asset retirement obligation For environmental remediation At the beginning of the year 141 42 6 Increases 106 37 6 Reclasification - (18) - Gain on monetary position, net (52) (18) (2) Decreases (23) (5) (5) Reversal of unused amounts (30) (16) - At the end of the year 142 22 5 12.31.2017 For contingencies Asset retirement obligation For environmental remediation At the beginning of the year 199 91 17 Increases 43 29 4 Reclasification (9) (1) 1 Reclasification to liabilities associated to assets classified as held for sale - (34) (7) Gain on monetary position, net (37) (18) (3) Decreases (39) (7) (6) Reversal of unused amounts (16) (18) - At the end of the year 141 42 6 |
Income tax and minimum notional income tax liability | 12.31.2019 12.31.2018 Non-current Income tax, net of witholdings and advances 10 27 Total non current 10 27 Current Income tax, net of witholdings and advances 53 25 Minimum notional income tax, net of witholdings and advances - 4 Total current 53 29 |
Tax liabilities | 12.31.2019 12.31.2018 Non-current Value added tax - 4 Sales tax 1 1 Payment plans - 2 Extraordinary Canon 3 7 Total non-current 4 14 Current Value added tax 38 21 Municipal, provincial and national contributions 3 3 Personal assets tax provision 3 - Payment plans 1 1 Municipal taxes 2 3 Tax withholdings to be deposited 6 9 Royalties 4 5 Extraordinary Canon 12 10 Other 3 2 Total current 72 54 |
Defined benefit plan information | 12.31.2019 Present value of the obligation Fair value of plan assets Net liability at the end of the year Liabilities at the beginning 40 (5) 35 Items classified in profit or loss Current services cost 3 - 3 Cost for interest 15 (2) 13 Items classified in other comprehensive income Actuarial (gains) losses (2) - (2) Benefit payments (2) - (2) Gain on monetary position, net (18) 2 (16) At the end 36 (5) 31 12.31.2018 Present value of the obligation Present value of assets Net liability at the end of the year Liabilities at the beginning 47 (3) 44 Items classified in profit or loss Current services cost 2 - 2 Cost for interest 9 (1) 8 Past services cost (5) - (5) Items classified in other comprehensive income Actuarial losses (gains) 6 (2) 4 Benefit payments (3) - (3) Increase for subsidiries acquisition (16) 1 (15) At the end 40 (5) 35 12.31.2017 Present value of the obligation Present value of assets Net liability at the end of the year Liabilities at the beginning 58 (8) 50 Items classified in profit or loss Current services cost 3 - 3 Cost for interest 12 (1) 11 Past services cost 1 - 1 Items classified in other comprehensive income Actuarial losses (gains) (1) - (1) Exchange differences on translation 1 (1) - Benefit payments (2) - (2) Reclasification to liabilities associated to assets classified as hed for sale (11) 4 (7) Gain (loss) on net monetary position (14) 3 (11) At the end 47 (3) 44 |
Estimated expected benefits payments | 12.31.2019 Less than one year 4 One to two years 3 Two to three years 2 Three to four years 2 Four to five years 2 Six to ten years 11 |
Principal actuarial assumptions | 12.31.2019 12.31.2018 12.31.2017 Discount rate 5% 5% 5% Salaries increase 1% 1% 1% Average inflation 50% 27% 21% |
Sensitivity analyses on actuarial assumptions variations | 12.31.2019 Discount rate: 4% 39 Obligation 3 Variation 10% Discount rate: 6% 33 Obligation (3) Variation (9%) Salaries increase: 0% 34 Obligation (2) Variation (5%) Salaries increase: 2% 38 Obligation 2 Variation 6% |
Salaries and social security payable | 12.31.2019 12.31.2018 Non-current Seniority - based bonus 3 4 Early retirements payable 1 - Total non-current 4 4 Current Salaries and social security contributions 22 24 Provision for vacations 17 19 Provision for gratifications and annual bonus for efficiency 26 29 Total current 65 72 |
12. FINANCIAL ASSETS AND LIAB_2
12. FINANCIAL ASSETS AND LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Financial Assets And Liabilities | |
Financial assets at amortized cost | 12.31.2019 12.31.2018 Non-current Public securities (1) 18 - Total non-current 18 - Current Time deposits - 35 Public securities (1) 54 - Total current 54 35 (1) The public securities were received in accordance with the mechanism set forth by SGE Resolution No. 54/19 for the settlement of receivables under Natural Gas Surplus Injection Promotion Programs. See Note 2.4.3.1. |
Financial assets at fair value through profit and loss | 12.31.2019 12.31.2018 Non-current Shares 11 11 Total non-current 11 11 Current Government securities 113 298 Shares 8 1 Investment funds 244 106 Total current 365 405 |
Trade and other receivables | Note 12.31.2019 12.31.2018 Non-Current CAMMESA Receivable (1) - 70 Other 8 23 Trade receivables, net 8 93 Non-Current Tax credits 3 13 Related parties 17 53 49 Prepaid expenses 1 1 Financial credit - 1 Receivable for sale of property, plant and equipment - 3 Natural Gas Surplus Injection Promotion Program (2) - 71 Credit with RDSA 20 35 20 Allowance for doubtful accounts (35) - Other 14 2 Other receivables, net 71 160 Total non-current 79 253 Current Note 12.31.2019 12.31.2018 Receivables from energy distribution sales 226 223 Receivables from MAT 17 27 CAMMESA 168 131 CAMMESA Receivable (1) - 15 Receivables from oil and gas sales (3) 48 78 Receivables from refinery and distribution sales - 6 Receivables from petrochemistry sales 54 67 Related parties 17 6 10 Government of the PBA and CABA by Social Rate 4 - Other 10 4 Allowance for doubtful accounts (33) (34) Trade receivables, net 500 527 Tax credits 10 27 Advances to suppliers - 2 Related parties 17 8 5 Prepaid expenses 2 2 Receivables for non-electrical activities 11 14 Financial credit 5 6 Guarantee deposits 5 13 Natural Gas Surplus Injection Promotion Program (2) - 71 Insurance to recover - 6 Expenses to be recovered 10 11 Credits for the sale of property, plant and equipment 1 21 Credit with RDSA 20 1 - Other 14 6 Allowance for other receivables (6) (8) Other receivables, net 61 176 Total current 561 703 (1) CAMMESA receivables were settled in pursuant to the Agreement for the Regularization and Settlement of Receivables with the WEM (see Note 2.1.7). (2) Receivables under the Natural Gas Surplus Injection Promotion Programs were settled through the delivery of public securities pursuant to the mechanism set forth by SGE Resolution No. 54/19 (see Note 2.4.3.1). (3) Including U$S 14.6 million corresponding to the receivables with gas distributors pursuant to the procedure set forth by PEN Executive Order No. 1,053/18 and regulated by ENARGAS Resolution No. 466/19 (see Note 2.4.3.2). |
Allowance for the impairment of trade receivables | 12.31.2019 12.31.2018 12.31.2017 At the beginning 34 26 21 Allowance for impairment 23 34 13 Utilizations (13) (10) (3) Reversal of unused amounts (2) (1) - Exchange differences on translation (1) - - Reclasification to assets held for sale - - (5) Gain on monetary position, net (8) (15) (5) At the end of the year 33 34 21 |
Allowance for the impairment of other receivables | 12.31.2019 12.31.2018 12.31.2017 At the beginning 8 6 10 Allowance for impairment 1 7 1 Gain on monetary position, net (1) (3) - Decreases - - (1) Reversal of unused amounts (2) (2) (5) At the end of the year 6 8 5 |
Cash and cash equivalents | 12.31.2019 12.31.2018 Banks 57 83 Investment funds 4 - Time deposits 164 158 Total 225 241 |
Borrowings | Non-Current Note 12.31.2019 12.31.2018 Financial borrowings 161 258 Corporate bonds (1) 1,603 1,457 CAMMESA financing - 120 1,764 1,835 Current Financial borrowings 137 313 Corporate bonds 32 25 CAMMESA financing - 3 Related parties 17 14 1 183 342 Total 1,947 2,177 (1) Net of the repurchase of Corporate Bonds of Pampa Energía for a nominal value of U$S 81 million and U$S 9 million and the repurchase of Edenor’s Corporate Bonds for a nominal value of U$S 29 million and U$S 10 million as of December 31, 2019 and 2018, respectively. |
Changes in borrowings | Note 12.31.2019 12.31.2018 12.31.2017 At the beginning 2,177 1,683 1,269 Proceeds from borrowings 556 245 1,250 Payment of borrowings (550) (240) (733) Accrued interest 185 179 143 Payment of borrowings' interests (148) (133) (108) Net foreign currency exchange difference 50 1,244 227 Results for the repurchase of corporate bonds 12.5.2 (27) (2) - Costs capitalized in property, plant and equipment 11.1 17 8 14 Decrease through offsetting with trade receivables (135) - - Gain on monetary position, net (88) (795) (379) Repurchase and redemption of corporate bonds (91) (13) (1) Other financial results 1 1 1 At the end of the year 1,947 2,177 1,683 |
Borrowings composition | Type of instrument Company Currency Residual value Interest Rate Expiration Book value as of 12.31.2019 Corporate bonds 2022 CB Edenor U$S 166 Fixed 9.75% 2022 139 Class E CB PAMPA ARS 575 Variable Badlar Nov-20 10 Class 1 CB PAMPA U$S 687 Fixed 7.50% Ene-27 698 T Series CB PAMPA U$S 487 Fixed 7.38% Jul-23 497 Serie 3 CB (1) PAMPA U$S 293 Fixed 9.13% Abr-29 291 1,635 Regulatory Thrid parties: PAMPA U$S 84 Fixed Between 4.25% and 7.65% Jan-2020 to 88 PAMPA U$S 39 Fixed and variable 4.21% + Libor May-2024 39 PAMPA ARS 7,775 Fixed Between 40% and 44.14% Apr-2021 to 146 273 Related parties: PAMPA U$S 13 Fixed 6.0% 2020 14 Financial loans Edenor U$S 1,885 Variable Libor + 4.27% Oct-20 25 25 1,947 (1) On June 10, 2019, the Company issued Series 3 Corporate Bonds for a face value of U$S 300 million. These corporate bonds accrue interest at a fixed rate of 9.125% payable semi-annually, and the principal will be payable in a single installment upon maturity, in April 2029. Type of instrument Company Currency Residual value Interest Rate Expiration Book value as of 12.31.2018 Corporate bonds 2022 CB Edenor U$S 166 Fixed 9.75% 2022 170 Class 4 CB (1) PAMPA U$S 34 Fixed 6.25% Oct 20 34 Class E CB PAMPA ARS 607 Fixed Badlar Nov-20 16 T Series CB PAMPA U$S 500 Fixed 7.38% Jul-23 753 Class 1 CB PAMPA U$S 747 Fixed 7.50% Jan-27 510 1,483 Regulatory CAMMESA 2014 Agreement PAMPA ARS 855 Variable CAMMESA (2) 57 CAMMESA Mapro PAMPA ARS 174 Variable CAMMESA (2) 7 CAMMESA Mapro CPB ARS 1,085 Variable CAMMESA (2) 59 123 Financial loans PAMPA U$S 17,116 Fixed Between 3.6% and 6.8% Feb-2019 to May-2021 459 PAMPA U$S 1,746 Fixed and variable 6% + Libor May-2024 46 PAMPA ARS 550 Fixed 22.25% Sep-2019 to Oct-2019 15 Edenor U$S 1,885 Variable Libor + 4.27% Oct-20 51 571 2,177 (1) On July 12, 2019, the Company provided for the early redemption of Series 4 Corporate Bonds for a value of U$S 34 million. (2) Regulatory financing was settled under the Agreement for the Regularization and Settlement of Receivables with the WEM (see Note 2.1.7). |
Trade and other payables | Non-Current 12.31.2019 12.31.2018 Customer contributions 3 3 Funding contributions for substations - 1 Customer guarantees 4 4 Trade payables 7 8 ENRE Penalties and discounts 64 138 Loans (mutuums) with CAMMESA - 61 Compensation agreements 7 7 Liability with FOTAE - 5 Payment agreement with ENRE - 1 Lease liability 12 - Other - - Other payables 83 212 Total non-current 90 220 Current Note 12.31.2019 12.31.2018 Suppliers 212 250 CAMMESA 155 316 Customer contributions 1 - Discounts to customers - 1 Customer advances 7 6 Related parties 17 8 6 Other - 1 Trade payables 383 580 ENRE Penalties and discounts 57 49 Related parties 17 5 - Compensation agreements 3 13 Payment agreements with ENRE 1 2 Other creditors - 8 Lease liability 4 - Other 1 5 Other payables 71 77 Total current 454 657 |
Financial instruments | As of December 31, 2019 Financial assets/liabilities at amortized cost Financial assets/liabilities at fair value through profit and losss Subtotal financial assets/liabilities Non financial assets/liabilities Total Assets Trade receivables and other receivables 622 4 626 14 640 Financial assets at fair value through profit and loss Government securities - 113 113 - 113 Shares - 19 19 - 19 Investment funds - 244 244 - 244 Derivative financial instruments - 4 4 - 4 Cash and cash equivalents 221 4 225 - 225 Total 843 388 1,231 14 1,245 Liabilities Trade and other liabilities 408 7 415 129 544 Borrowings 1,947 - 1,947 - 1,947 Derivative financial instruments - 3 3 - 3 Total 2,355 10 2,365 129 2,494 As of December 31, 2018 Financial assets/liabilities at amortized cost Financial assets/liabilities at fair value through profit and losss Subtotal financial assets/liabilities Non financial assets/liabilities Total Assets Trade receivables and other receivables 909 3 912 44 956 Financial assets at amortized cost Government securities 35 - 35 - 35 Financial assets at fair value through profit and loss Government securities - 298 298 - 298 Shares - 12 12 - 12 Investment funds - 106 106 - 106 Cash and cash equivalents 241 - 241 - 241 Total 1,185 419 1,604 44 1,648 Liabilities Trade and other liabilities 610 15 625 252 877 Borrowings 2,177 - 2,177 - 2,177 Instrumentos financieros derivados - 1 1 - 1 Total 2,787 16 2,803 252 3,055 |
Income, expenses, gains and losses from financial instruments | As of December 31, 2019 Financial assets/liabilities at amortized cost Financial assets/liabilities at fair value through profit and losss Subtotal financial assets/liabilities Non Financial assets/ liabilities Total Interest income 93 3 96 - 96 Interest expense (275) - (275) (20) (295) Foreign exchange, net (92) 14 (78) 3 (75) Results from financial instruments at fair value - 91 91 - 91 Gains (losses) from present value measurement 54 - 54 - 54 Other financial results 37 - 37 2 39 Total (183) 108 (75) (15) (90) As of December 31, 2018 Financial assets/liabilities at amortized cost Financial assets/liabilities at fair value through profit and losss Subtotal financial assets/liabilities Non Financial assets/ liabilities Total Interest income 94 5 99 - 99 Interest expense (289) - (289) (22) (311) Foreign exchange, net (865) 86 (779) (84) (863) Results from financial instruments at fair value - 64 64 - 64 Gains (losses) from present value measurement (74) - (74) - (74) Other financial results 12 - 12 (2) 10 Total (1,122) 155 (967) (108) (1,075) As of December 31, 2017 Financial assets/liabilities at amortized cost Financial assets/liabilities at fair value through profit and losss Subtotal financial assets/liabilities Non Financial assets/ liabilities Total Interest income 55 7 62 - 62 Interest expense (217) - (217) (11) (228) Foreign exchange, net (191) 49 (142) (14) (156) Results from financial instruments at fair value - 62 62 - 62 Gains (losses) from present value measurement (6) - (6) - (6) Other financial results (2) - (2) (2) (4) Total (361) 118 (243) (27) (270) |
Fair value of financial instruments | As of Dectember 31, 2019 Level 1 Level 2 Level 3 Total Assets Financial assets at fair value through profit and losss Government securities 113 - - 113 Shares 8 - 11 19 Investment funds 244 - - 244 Cash and cash equivalents Investment funds 4 - - 4 Derivative financial instruments - 4 - 4 Other receivables 4 - - 4 Total assets 373 4 11 388 Liabilities Derivative financial instruments - 3 - 3 Total liabilities - 3 - 3 As of December 31, 2018 Level 1 Level 2 Level 3 Total Assets Financial assets at fair value through profit and losss Government securities 298 - - 298 Trust 1 - 11 12 Investment funds 106 - - 106 Other receivables 3 - - 3 Total assets 408 - 11 419 Liabilities Derivative financial instruments - 1 - 1 Total liabilities - 1 - 1 |
13. EQUITY COMPONENTS (Tables)
13. EQUITY COMPONENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity Components | |
Earnings (loss) per share | 12.31.2019 12.31.2018 12.31.2017 Earning for continuing operations attributable to the equity holders of the Company 692 146 341 Weighted average amount of outstanding shares 48 52 51 Basic and diluted earnings per share from continuing operations 14.42 2.81 6.69 Earning (loss) for discontinued operations attributable to the equity holders of the Company - 78 (55) Weighted average amount of outstanding shares 48 52 51 Basic and diluted earnings (loss) per share from discontinued operations - 1.50 (1.07) Total earning attributable to the equity holders of the Company 692 224 286 Weighted average amount of outstanding shares 48 52 51 Basic and diluted earnings per share 14.42 4.31 5.61 |
14. STATEMENT OF CASH FLOWS' _2
14. STATEMENT OF CASH FLOWS' COMPLEMENTARY INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Statement Of Cash Flows Complementary Information | |
Adjustments to reconcile net profit (loss) to cash flows generated by operating activities | Note 12.31.2019 12.31.2018 12.31.2017 Income tax 10.6 48 17 (26) Accrued interest 202 219 166 Depreciations and amortizations 9, 10.1 and 10.2 267 234 205 Constitution of allowances, net 10.4 and 10.1 25 28 12 Constitution (recovery) of provisions, net 10.4 27 31 (4) Share of profit from joint ventures and associates 5.3.2 (101) (118) (48) Income from the sale of companies 5.1 - (28) - Accrual of defined benefit plans 9, 10.1 and 10.2 16 5 14 Net exchange differences 10.5 75 863 156 Result from measurement at present value 10.5 (54) 74 6 Changes in the fair value of financial instruments 10.5 (91) (64) (62) Results from property, plant and equipment sale and decreases 10.4 and 10.3 5 4 1 Results for the repurchase of corporate bonds 10.5 (27) (2) - Impairment of property, plant and equipment 11.1.1 62 32 - Dividends received 10.4 (1) (1) (1) Compensation agreements 10.1 and 10.2 (1) 5 26 Result from the sale of shareholdings in companies, property, plant and equipment 5.2.3 - (44) - Agreement on the regularization of obligations (285) - - Other financial results of RDSA (2) (13) - Onerous contract (Ship or pay) 10.4 - 7 4 Gain on monetary position, net 10.5 (187) (629) (304) Other (8) 2 6 (30) 622 151 |
Changes in operating assets and liabilities | 12.31.2019 12.31.2018 12.31.2017 Increase (decrease) in trade receivables and other receivables 17 (172) (65) Increase in inventories (28) (18) (11) Increase in trade payables and other payables 97 22 10 Increase in deferred income - 2 - Decrease in salaries and social security payable 15 14 (1) Decrease in defined benefit plans (2) (3) (3) (Decrease) increase in tax payables 20 35 (26) (Increase) decrease in provisions (9) (60) (48) Income tax and minimum notional income tax paid (87) (49) (56) (Payments) proceeds from derivative financial instruments, net 9 (24) 23 Total changes in operating assets and liabilities 32 (253) (177) |
Significant non-cash transactions | 12.31.2019 12.31.2018 12.31.2017 Acquisition of property, plant and equipment through an increase in trade payables (45) 17 (103) Borrowing costs capitalized in property, plant and equipment (17) (7) (16) Decreases of property, plant and equipment through an increase in other receivables - 12 - Agreement on the regularization of obligations 285 - - Increase in asset retirement obligation provision through an increase in property, plant and equipment 1 34 (2) Constitution of guarantee of derivative financial instruments, net through the delivery of financial assets at fair value through profit or loss 3 (22) 19 Cancellation of other credits for capital contributions in associates (17) - - Compensation of investments at a cost cost through the transfer of other credits (126) - - Loan compensation through the transfer of sales credits 135 - - Increase of right-of-use assets through an increase in other debts 20 - - Significant non-cash transactions from discontinued operations : Credit pending collection for sale of property, plant and equipment - - 15 |
17. RELATED PARTIES' TRANSACT_2
17. RELATED PARTIES' TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Related party transactions [abstract] | |
Sales of goods and services | 12.31.2019 12.31.2018 12.31.2017 Associates and joint ventures CTB (1) 1 - - Transener - 1 1 TGS (2) 29 51 23 Greenwind 1 - - Refinor (3) 18 16 5 Other related parties SACDE - 1 - 49 69 29 (1) Corresponds mainly to advisory services for technical assistance. (2) Corresponds mainly to advisory services for technical assistance and purchase of gas. TGS’ Meeting of Shareholders held on October 17, 2019 approved certain amendments to the services agreement which extend the agreement’s term and entail a progressive reduction over the years of the remuneration collectable by the Company as technical operator. (3) Corresponds mainly to sales of gas and refined products. |
Purchases of goods and services | 12.31.2019 12.31.2018 12.31.2017 Associates and joint ventures TGS (1) (22) (21) (8) SACME (1) (2) (2) Refinor (2) (19) (34) (17) Oldelval (3) (1) (2) (3) Other related parties SACDE (4) - (2) - Orígenes Vida - - (1) (43) (61) (31) (1) Corresponds mainly to natural gas transportation services. (2) Corresponds mainly to purchases of refined products. (3) Correspond mainly to oil transportation services. (4) Correspond mainly to construction services that include work execution and storage of materials, capitalized in Properties, plant and equipment. |
Fees for services | 12.31.2019 12.31.2018 12.31.2017 Other related parties Salaverri, Dellatorre, Burgio & Wetzler (1) (1) (1) (1) (1) (1) |
Other operating income (expenses) | 12.31.2019 12.31.2018 12.31.2017 Associates and joint ventures Greenwind (1) - - OCP (1) - (7) - Other related parties SACDE 1 - - Foundation (2) (2) (2) (1) (2) (9) (1) (1) (2) |
Financial income | 12.31.2019 12.31.2018 12.31.2017 Associates and joint ventures TGS 3 3 3 3 3 3 |
Dividends received | 12.31.2019 12.31.2018 12.31.2017 Associates and joint ventures CIESA/TGS 56 18 - OCP 14 - - Oldelval - 1 - Citelec 17 - - 87 19 - |
Payment of dividends | Other related parties 12.31.2019 12.31.2018 12.31.2017 EMESA - (2) (2) APCO Oil - - (2) - (2) (4) |
Balances with related parties | As of December 31, 2019 Trade receivables Other receivables Current Non Current Current Associates and joint ventures TGS 4 34 5 CIESA - - - Greenwind - 4 - Refinor 2 - - OCP - 15 - Other related parties SACDE - - 2 Other - - 1 6 53 8 As of December 31, 2019 Trade payables Other payables Borrowings Current Current Current Associates and joint ventures Greenwind 5 - - SACME 2 - - Citelec - - 14 OCP - 5 - Refinor 1 - - 8 5 14 As of December 31, 2018 Trade receivables Other receivables Current Non Current Current Associates and joint ventures TGS 8 38 4 Greenwind - 11 - Refinor 2 - - Other related parties SACDE - - 1 10 49 5 As of December 31, 2018 Trade payables Other payables Borrowings Current Current Current Associates and joint ventures TGS 3 - - Refinor 3 - - Other related parties Orígenes Retiro - - 1 6 - 1 |
18. LEASES (Tables)
18. LEASES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases | |
Right of use assets | Original values Type of good At the beginning Increase At the end (1) Machinery and equipment - 13 13 Buildings - 7 7 Total at 12.31.2019 - 20 20 Depreciation Type of good At the beginning For the year At the end Machinery and equipment - (2) (2) Buildings - (2) (2) Total at 12.31.2019 - (4) (4) Net book values Type of good At the end Machinery and equipment 11 Buildings 5 Total at 12.31.2019 16 (1) |
Lease liabilities | 12.31.2019 At the beginning of the year - Incorporation by adoption of IFRS 16 8 Increases 13 Discounted value measurement (1) 3 Payments (5) Exchange differences on translation (3) At the end of the year 16 (1) |
Lease liabilities payments by maturity | 12.31.2019 Less than three months 1 Three months to one year 4 One to two years 4 Two to three years 2 Three to four years 1 Four to five years 1 More than five years 16 Total 29 |
Lease receivables by maturity | 12.31.2019 Less than three months 2 Three months to one year 6 One to two years 7 Two to three years 7 Three to four years 7 Four to five years 7 More than five years 12 Total 48 |
Future minimum collections from operating leases | 12.31.2019 12.31.2018 2019 - 5 2020 5 - Total future minimum lease collections 5 5 |
22. OIL AND GAS RESERVES (Inf_2
22. OIL AND GAS RESERVES (Information not covered by the auditors' report) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Oil And Gas Reserves | |
Proved reserves | Proved Reserves Proved Developed Proved Undeveloped Total Proved Oil and LNG (1) Natural Gas (2) Oil and LNG (1) Natural Gas (2) Oil and LNG (1) Natural Gas (2) Argentina 8,804 10,534 4,746 10,168 13,550 20,702 Total at 12.31.2019 8,804 10,534 4,746 10,168 13,550 20,702 (1) (2) |
2. REGULATORY FRAMEWORK (Detail
2. REGULATORY FRAMEWORK (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Generator in operation 1 | |
DisclosureOfRegulatoryFrameworkLineItems [Line Items] | |
Generator | CTG |
Generating unit | GUEMTG01 |
Tecnology | TG |
Power | 100 MW |
Applicable regime | Energy Plus Res. No. 1281/06 |
Generator in operation 2 | |
DisclosureOfRegulatoryFrameworkLineItems [Line Items] | |
Generator | CTG |
Generating unit | GUEMTV11 |
Tecnology | TV |
Power | |
Applicable regime | SE Resolutions No. 1/19 |
Generator in operation 3 | |
DisclosureOfRegulatoryFrameworkLineItems [Line Items] | |
Generator | CTG |
Generating unit | GUEMTV12 |
Tecnology | TV |
Power | |
Applicable regime | SE Resolutions No. 1/19 |
Generator in operation 4 | |
DisclosureOfRegulatoryFrameworkLineItems [Line Items] | |
Generator | CTG |
Generating unit | GUEMTV13 |
Tecnology | TV |
Power | < 100 MW |
Applicable regime | SE Resolutions No. 1/19 |
Generator in operation 5 | |
DisclosureOfRegulatoryFrameworkLineItems [Line Items] | |
Generator | Piquirenda |
Generating unit | PIQIDI 01-10 |
Tecnology | MG |
Power | 30 MW |
Applicable regime | SE Resolution No. 220/07 |
Generator in operation 6 | |
DisclosureOfRegulatoryFrameworkLineItems [Line Items] | |
Generator | CPB |
Generating unit | BBLATV29 |
Tecnology | TV |
Power | > 100 MW |
Applicable regime | SE Resolutions No. 1/19 |
Generator in operation 7 | |
DisclosureOfRegulatoryFrameworkLineItems [Line Items] | |
Generator | CPB |
Generating unit | BBLATV30 |
Tecnology | TV |
Power | > 100 MW |
Applicable regime | SE Resolutions No. 1/19 |
Generator in operation 8 | |
DisclosureOfRegulatoryFrameworkLineItems [Line Items] | |
Generator | CT Ing. White |
Generating unit | BBLMD01-06 |
Tecnology | MG |
Power | 100 MW |
Applicable regime | SEE Resolution No. 21/16 |
Generator in operation 9 | |
DisclosureOfRegulatoryFrameworkLineItems [Line Items] | |
Generator | CTLL |
Generating unit | LDLATG01 |
Tecnology | TG |
Power | > 50 MW |
Applicable regime | SE Resolutions No. 1/19 |
Generator in operation 10 | |
DisclosureOfRegulatoryFrameworkLineItems [Line Items] | |
Generator | CTLL |
Generating unit | LDLATG02 |
Tecnology | TG |
Power | > 50 MW |
Applicable regime | SE Resolutions No. 1/19 |
Generator in operation 11 | |
DisclosureOfRegulatoryFrameworkLineItems [Line Items] | |
Generator | CTLL |
Generating unit | LDLATG03 |
Tecnology | TG |
Power | > 50 MW |
Applicable regime | SE Resolutions No. 1/19 |
Generator in operation 12 | |
DisclosureOfRegulatoryFrameworkLineItems [Line Items] | |
Generator | CTLL |
Generating unit | LDLATG04 |
Tecnology | TG |
Power | 105 MW |
Applicable regime | SEE Res. 220/07 (75%), SEE Res. 1/19 (25%) |
Generator in operation 13 | |
DisclosureOfRegulatoryFrameworkLineItems [Line Items] | |
Generator | CTLL |
Generating unit | LDLATG05 |
Tecnology | TG |
Power | 105 MW |
Applicable regime | SEE Resolution No. 21/16 |
Generator in operation 14 | |
DisclosureOfRegulatoryFrameworkLineItems [Line Items] | |
Generator | CTLL |
Generating unit | LDLATV01 |
Tecnology | TV |
Power | 180 MW |
Applicable regime | SE Resolution No. 220/07 |
Generator in operation 15 | |
DisclosureOfRegulatoryFrameworkLineItems [Line Items] | |
Generator | CTGEBA |
Generating unit | GEBATG01/TG02/TV01 |
Tecnology | CC |
Power | > 150 MW |
Applicable regime | SE Resolutions No. 1/19 |
Generator in operation 16 | |
DisclosureOfRegulatoryFrameworkLineItems [Line Items] | |
Generator | CTGEBA |
Generating unit | GEBATG03 |
Tecnology | TG |
Power | 188 MW |
Applicable regime | Energy Plus Res. No. 1281/06 |
Generator in operation 17 | |
DisclosureOfRegulatoryFrameworkLineItems [Line Items] | |
Generator | CTGEBA |
Generating unit | GEBATG04 |
Tecnology | TG |
Power | > 100 MW |
Applicable regime | SE Resolutions No. 1/19 |
Generator in operation 18 | |
DisclosureOfRegulatoryFrameworkLineItems [Line Items] | |
Generator | Ecoenergía |
Generating unit | CERITV01 |
Tecnology | TV |
Power | Renewable =< 50 |
Applicable regime | Energy Plus Res. N° 1281/06 |
Generator in operation 19 | |
DisclosureOfRegulatoryFrameworkLineItems [Line Items] | |
Generator | CT Parque Pilar |
Generating unit | PILBD01-06 |
Tecnology | MG |
Power | 100 MW |
Applicable regime | SE Resolutions No. 1/19 |
Generator in operation 20 | |
DisclosureOfRegulatoryFrameworkLineItems [Line Items] | |
Generator | CTB |
Generating unit | EBARTG01 - TG02 |
Tecnology | TG |
Power | HI - Small 50<P=<120 |
Applicable regime | SE Resolution No. 220/07 |
Generator in operation 21 | |
DisclosureOfRegulatoryFrameworkLineItems [Line Items] | |
Generator | HIDISA |
Generating unit | AGUA DEL TORO |
Tecnology | HI |
Power | HI - Small 50<P=<120 |
Applicable regime | SE Resolutions No. 1/19 |
Generator in operation 22 | |
DisclosureOfRegulatoryFrameworkLineItems [Line Items] | |
Generator | HIDISA |
Generating unit | EL TIGRE |
Tecnology | HI |
Power | HI - Small 50<P=<120 |
Applicable regime | SE Resolutions No. 1/19 |
Generator in operation 23 | |
DisclosureOfRegulatoryFrameworkLineItems [Line Items] | |
Generator | HIDISA |
Generating unit | LOS REYUNOS |
Tecnology | HB |
Power | HB - Media 120<P=<300 |
Applicable regime | SE Resolutions No. 1/19 |
Generator in operation 24 | |
DisclosureOfRegulatoryFrameworkLineItems [Line Items] | |
Generator | HINISA |
Generating unit | NIHUIL I - II - III |
Tecnology | HI |
Power | HI - Chica 50<P=<120 |
Applicable regime | SE Resolutions No. 1/19 |
Generator in operation 25 | |
DisclosureOfRegulatoryFrameworkLineItems [Line Items] | |
Generator | HPPL |
Generating unit | PPLEHI |
Tecnology | HI |
Power | HI - Media 120<P=<300 |
Applicable regime | SE Resolutions No. 1/19 |
Generator in operation 26 | |
DisclosureOfRegulatoryFrameworkLineItems [Line Items] | |
Generator | P.E. M. Cebreiro |
Generating unit | CORTEO |
Tecnology | Eólica |
Power | 100 MW |
Applicable regime | Renovar |
Generator in operation 27 | |
DisclosureOfRegulatoryFrameworkLineItems [Line Items] | |
Generator | PEPE II |
Generating unit | PAMEEO |
Tecnology | Eólica |
Power | 53 MW |
Applicable regime | SEE Resolution No. 281/17 |
Generator in operation 28 | |
DisclosureOfRegulatoryFrameworkLineItems [Line Items] | |
Generator | PEPE III |
Generating unit | BAHIEO |
Tecnology | Eólica |
Power | 53 MW |
Applicable regime | SEE Resolution No. 281/17 |
2. REGULATORY FRAMEWORK (Deta_2
2. REGULATORY FRAMEWORK (Details 1) | 12 Months Ended |
Dec. 31, 2019 | |
Generator in construction 1 | |
DisclosureOfRegulatoryFrameworkLineItems [Line Items] | |
Generator | CTLL |
Generating unit | MG |
Tecnology | 15 MW |
Applicable regime | SE Resolutions No. 1/19 |
Generator in construction 2 | |
DisclosureOfRegulatoryFrameworkLineItems [Line Items] | |
Generator | CTGEBA |
Generating unit | CC |
Tecnology | 176 MW |
Applicable regime | SE Resolution No. 287/17 |
Generator in construction 3 | |
DisclosureOfRegulatoryFrameworkLineItems [Line Items] | |
Generator | CTB |
Generating unit | CC |
Tecnology | 280 MW |
Applicable regime | SE Resolution No. 220/07 |
4. ACCOUNTING POLICIES (Details
4. ACCOUNTING POLICIES (Details) $ in Millions | Dec. 31, 2018USD ($) |
Accounting Policies | |
Operating lease commitments | $ 10.5 |
Discount using incremental borrowing rate of 58.16% as of 01.01.2019 | (2.4) |
Exchange differences on translation | (0.1) |
Lease liability | $ 8 |
4. ACCOUNTING POLICIES (Detai_2
4. ACCOUNTING POLICIES (Details 1) | 12 Months Ended |
Dec. 31, 2019 | |
Buildings | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Property, plant and equipment estimated useful lives | 50 years |
Substations | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Property, plant and equipment estimated useful lives | 35 years |
High voltage lines | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Property, plant and equipment estimated useful lives | 40 - 45 years |
Medium voltage lines | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Property, plant and equipment estimated useful lives | 35 - 45 years |
Low voltage lines | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Property, plant and equipment estimated useful lives | 30 - 40 years |
Transformer centrals | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Property, plant and equipment estimated useful lives | 25 - 35 years |
Meters | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Property, plant and equipment estimated useful lives | 25 years |
Vehicles | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Property, plant and equipment estimated useful lives | 5 years |
Furniture, fittings and communication equipment | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Property, plant and equipment estimated useful lives | 5 - 20 years |
Computer equipment and software | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Property, plant and equipment estimated useful lives | 3 years |
Tools | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Property, plant and equipment estimated useful lives | 10 years |
Gas Plant and Pipeline | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Property, plant and equipment estimated useful lives | 20 years |
5. GROUP STRUCTURE (Details)
5. GROUP STRUCTURE (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Refining and distribution | |
DisclosureOfGroupStructureLineItems [Line Items] | |
Sale price | $ 28 |
Book value of assets sold and costs associated with the transaction | (28) |
Result for sale | 0 |
PELSA | |
DisclosureOfGroupStructureLineItems [Line Items] | |
Sale price | 270 |
Book value of assets sold and costs associated with the transaction | (226) |
Result for sale | 44 |
Interests | 4 |
Income tax | (22) |
Included in results | 26 |
Other comprehensive income (loss) | |
Reclassification from exchange differences on translation | 6 |
Income tax | (2) |
Included in other comprehensive income | 4 |
Total comprehensive income | $ 30 |
5. GROUP STRUCTURE (Details 1)
5. GROUP STRUCTURE (Details 1) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
DisclosureOfGroupStructureLineItems [Line Items] | |||
Revenue | $ 2,836 | $ 2,920 | $ 2,175 |
Cost of sales | (2,032) | (1,967) | (1,574) |
Gross profit | 804 | 953 | 601 |
Selling expenses | (148) | (171) | (127) |
Administrative expenses | (174) | (206) | (198) |
Exploration expenses | (9) | (1) | (2) |
Other operating income | 40 | 181 | 149 |
Other operating expenses | (86) | (200) | (103) |
Operating income (loss) | 751 | 670 | 368 |
Gain (loss) on monetary position | 187 | 629 | 304 |
Financial income | 96 | 99 | 62 |
Financial costs | (299) | (316) | (232) |
Other financial results | 113 | (858) | (100) |
Financial results, net | 97 | (446) | 34 |
Income (loss) before income tax | 848 | 224 | 402 |
Income tax | (48) | (17) | 26 |
Profit (loss) of the year from discontinued operations | 0 | 80 | (50) |
Other comprehensive income (loss) items that will not be reclassified to profit or loss | |||
Income tax | 0 | 1 | 0 |
Exchange differences on translation | (15) | 0 | 0 |
Other comprehensive income (loss) Items that may be reclassified to profit or loss | |||
Total comprehensive income (loss) of the year from discontinued operations | 765 | 292 | 367 |
Total comprehensive income (loss) of the year from discontinued operations attributable to: | |||
Discontinued operations | 0 | 78 | (55) |
Total comprehensive income (loss) of the year attributable to from discontinued operations | |||
Discontinued operations | $ 0 | 84 | (62) |
Oil and gas | |||
DisclosureOfGroupStructureLineItems [Line Items] | |||
Revenue | 66 | 259 | |
Cost of sales | (33) | (251) | |
Gross profit | 33 | 8 | |
Selling expenses | (2) | (8) | |
Administrative expenses | (1) | (6) | |
Exploration expenses | (1) | ||
Other operating income | 1 | 16 | |
Other operating expenses | (6) | (8) | |
Result from the sale of share of profit and property, plant and equipment | 44 | 0 | |
Operating income (loss) | 69 | 1 | |
Gain (loss) on monetary position | 7 | ||
Financial income | 4 | 1 | |
Financial costs | (1) | 0 | |
Other financial results | (4) | (10) | |
Financial results, net | 6 | (9) | |
Income (loss) before income tax | 75 | (8) | |
Income tax | (26) | (28) | |
Profit (loss) of the year from discontinued operations | 49 | (36) | |
Other comprehensive income (loss) items that will not be reclassified to profit or loss | |||
Income tax | (2) | 2 | |
Reclasification from exchange differences on translation | 6 | ||
Exchange differences on translation | 4 | (16) | |
Other comprehensive income (loss) Items that may be reclassified to profit or loss | |||
Other comprehensive income (loss) of the year from discontinued operations | 8 | (14) | |
Total comprehensive income (loss) of the year from discontinued operations | 57 | (50) | |
Total comprehensive income (loss) of the year from discontinued operations attributable to: | |||
Owners of the company | 47 | (41) | |
Non - controlling interest | 2 | 5 | |
Discontinued operations | 49 | (36) | |
Total comprehensive income (loss) of the year attributable to from discontinued operations | |||
Owners of the company | 53 | (48) | |
Non - controlling interest | 4 | (2) | |
Discontinued operations | 57 | (50) | |
Refining and distribution | |||
DisclosureOfGroupStructureLineItems [Line Items] | |||
Revenue | 422 | 728 | |
Cost of sales | (361) | (618) | |
Gross profit | 61 | 110 | |
Selling expenses | (33) | (82) | |
Administrative expenses | (4) | (19) | |
Exploration expenses | 0 | ||
Other operating income | 6 | 10 | |
Other operating expenses | (10) | (13) | |
Result from the sale of share of profit and property, plant and equipment | 0 | (28) | |
Operating income (loss) | 20 | (22) | |
Gain (loss) on monetary position | 2 | ||
Financial income | 1 | 1 | |
Financial costs | 0 | (1) | |
Other financial results | 22 | (1) | |
Financial results, net | 25 | (1) | |
Income (loss) before income tax | 45 | (23) | |
Income tax | (14) | 8 | |
Profit (loss) of the year from discontinued operations | 31 | (15) | |
Other comprehensive income (loss) items that will not be reclassified to profit or loss | |||
Income tax | 0 | 0 | |
Reclasification from exchange differences on translation | 0 | ||
Exchange differences on translation | 0 | 0 | |
Other comprehensive income (loss) Items that may be reclassified to profit or loss | |||
Other comprehensive income (loss) of the year from discontinued operations | 0 | 0 | |
Total comprehensive income (loss) of the year from discontinued operations | 31 | (15) | |
Total comprehensive income (loss) of the year from discontinued operations attributable to: | |||
Owners of the company | 31 | (15) | |
Non - controlling interest | 0 | 0 | |
Discontinued operations | 31 | 0 | |
Total comprehensive income (loss) of the year attributable to from discontinued operations | |||
Owners of the company | 31 | (15) | |
Non - controlling interest | 0 | 0 | |
Discontinued operations | 31 | (15) | |
Eliminations | |||
DisclosureOfGroupStructureLineItems [Line Items] | |||
Revenue | (90) | (296) | |
Cost of sales | 91 | 297 | |
Gross profit | 1 | 1 | |
Selling expenses | 0 | 0 | |
Administrative expenses | 0 | 0 | |
Exploration expenses | 0 | ||
Other operating income | 0 | 0 | |
Other operating expenses | 0 | 0 | |
Result from the sale of share of profit and property, plant and equipment | 0 | 0 | |
Operating income (loss) | 1 | 1 | |
Gain (loss) on monetary position | (1) | ||
Financial income | 0 | 0 | |
Financial costs | 0 | 0 | |
Other financial results | 0 | 0 | |
Financial results, net | (1) | 0 | |
Income (loss) before income tax | 0 | 1 | |
Income tax | 0 | 0 | |
Profit (loss) of the year from discontinued operations | 0 | 1 | |
Other comprehensive income (loss) items that will not be reclassified to profit or loss | |||
Income tax | 0 | 0 | |
Reclasification from exchange differences on translation | 0 | ||
Exchange differences on translation | 0 | 0 | |
Other comprehensive income (loss) Items that may be reclassified to profit or loss | |||
Other comprehensive income (loss) of the year from discontinued operations | 0 | 0 | |
Total comprehensive income (loss) of the year from discontinued operations | 0 | 1 | |
Total comprehensive income (loss) of the year from discontinued operations attributable to: | |||
Owners of the company | 0 | 1 | |
Non - controlling interest | 0 | 0 | |
Discontinued operations | 0 | 1 | |
Total comprehensive income (loss) of the year attributable to from discontinued operations | |||
Owners of the company | 0 | 1 | |
Non - controlling interest | 0 | 0 | |
Discontinued operations | 0 | 1 | |
Total | |||
DisclosureOfGroupStructureLineItems [Line Items] | |||
Revenue | 398 | 691 | |
Cost of sales | (303) | (572) | |
Gross profit | 95 | 119 | |
Selling expenses | (35) | (90) | |
Administrative expenses | (5) | (25) | |
Exploration expenses | (1) | ||
Other operating income | 7 | 26 | |
Other operating expenses | (16) | (21) | |
Result from the sale of share of profit and property, plant and equipment | 44 | (28) | |
Operating income (loss) | 90 | (20) | |
Gain (loss) on monetary position | 8 | ||
Financial income | 5 | 2 | |
Financial costs | (1) | (1) | |
Other financial results | 18 | (11) | |
Financial results, net | 30 | (10) | |
Income (loss) before income tax | 120 | (30) | |
Income tax | (40) | (20) | |
Profit (loss) of the year from discontinued operations | 80 | (50) | |
Other comprehensive income (loss) items that will not be reclassified to profit or loss | |||
Income tax | (2) | 2 | |
Reclasification from exchange differences on translation | 6 | ||
Exchange differences on translation | 4 | (16) | |
Other comprehensive income (loss) Items that may be reclassified to profit or loss | |||
Other comprehensive income (loss) of the year from discontinued operations | 8 | (14) | |
Total comprehensive income (loss) of the year from discontinued operations | 88 | (64) | |
Total comprehensive income (loss) of the year from discontinued operations attributable to: | |||
Owners of the company | 78 | (55) | |
Non - controlling interest | 2 | 5 | |
Discontinued operations | 80 | (50) | |
Total comprehensive income (loss) of the year attributable to from discontinued operations | |||
Owners of the company | 84 | (62) | |
Non - controlling interest | 4 | (2) | |
Discontinued operations | $ 88 | $ (64) |
5. GROUP STRUCTURE (Details 2)
5. GROUP STRUCTURE (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Group Structure | |||
Net cash (used in) generated by operating activities | $ 0 | $ (46) | $ 87 |
Net cash used in investing activities | 0 | 0 | (50) |
Net cash generated by (used in) financing activities | 0 | 42 | (31) |
(Decrease) increase in cash and cash equivalents from discontinued operations | (4) | 6 | |
Cash and cash equivalents at the begining of the year | $ 0 | 6 | 4 |
Loss on net monetary position generated by cash and cash equivalents | (2) | (4) | |
(Decrease) increase in cash and cash equivalents | (4) | 6 | |
Cash and cash equivalents at the end of the year | $ 0 | $ 6 |
5. GROUP STRUCTURE (Details 3)
5. GROUP STRUCTURE (Details 3) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Subsidiary 1 | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | Corod | Corod |
Country | Argentina | Argentina |
Main activity | Oil | Oil |
Direct and indirect participation | 100.00% | 100.00% |
Subsidiary 2 | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | CPB | CPB |
Country | Argentina | Argentina |
Main activity | Generation | Generation |
Direct and indirect participation | 100.00% | 100.00% |
Subsidiary 3 | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | CPB Energía S.A. | CPB Energía S.A. |
Country | Argentina | Argentina |
Main activity | Generation | Generation |
Direct and indirect participation | 100.00% | 100.00% |
Subsidiary 4 | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | EcuadorTLC | EcuadorTLC |
Country | Ecuador | Ecuador |
Main activity | Oil | Oil |
Direct and indirect participation | 100.00% | 100.00% |
Subsidiary 5 | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | Edenor | Edenor |
Country | Argentina | Argentina |
Main activity | Distribution of energy | Distribution of energy |
Direct and indirect participation | 56.32% | 52.18% |
Subsidiary 6 | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | Enecor S.A. | Enecor S.A. |
Country | Argentina | Argentina |
Main activity | Transportation of electricity | Transportation of electricity |
Direct and indirect participation | 69.99% | 69.99% |
Subsidiary 7 | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | HIDISA | HIDISA |
Country | Argentina | Argentina |
Main activity | Generation | Generation |
Direct and indirect participation | 61.00% | 61.00% |
Subsidiary 8 | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | HINISA | HINISA |
Country | Argentina | Argentina |
Main activity | Generation | Generation |
Direct and indirect participation | 52.04% | 52.04% |
Subsidiary 9 | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | PACOSA | PACOSA |
Country | Argentina | Argentina |
Main activity | Trader | Trader |
Direct and indirect participation | 100.00% | 100.00% |
Subsidiary 10 | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | PEA | PEA |
Country | Argentina | Argentina |
Main activity | Generation | Generation |
Direct and indirect participation | 0.00% | 100.00% |
Subsidiary 11 | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | PEB | PEB |
Country | Bolivia | Bolivia |
Main activity | Investment | Investment |
Direct and indirect participation | 100.00% | 100.00% |
Subsidiary 12 | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | PACOGEN | PACOGEN |
Country | Argentina | Argentina |
Main activity | Investment | Investment |
Direct and indirect participation | 100.00% | 100.00% |
Subsidiary 13 | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | PEFM | PEFM |
Country | Argentina | Argentina |
Main activity | Generation | Generation |
Direct and indirect participation | 0.00% | 100.00% |
Subsidiary 14 | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | Petrobras Energía Colombia Gran Cayman | Petrobras Energía Colombia Gran Cayman |
Country | Colombia | Colombia |
Main activity | Oil | Oil |
Direct and indirect participation | 0.00% | 100.00% |
Subsidiary 15 | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | Petrobras Energía Ecuador | Petrobras Energía Ecuador |
Country | Gran Cayman | Gran Cayman |
Main activity | Investment | Investment |
Direct and indirect participation | 100.00% | 100.00% |
Subsidiary 16 | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | Energía Operaciones ENOPSA S.A. | Energía Operaciones ENOPSA S.A. |
Country | Ecuador | Ecuador |
Main activity | Oil | Oil |
Direct and indirect participation | 100.00% | 100.00% |
Subsidiary 17 | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | Petrolera San Carlos S.A. | Petrolera San Carlos S.A. |
Country | Venezuela | Venezuela |
Main activity | Oil | Oil |
Direct and indirect participation | 100.00% | 100.00% |
Subsidiary 18 | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | PHA | PHA |
Country | Argentina | Argentina |
Main activity | Investment | Investment |
Direct and indirect participation | 100.00% | 100.00% |
Subsidiary 19 | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | PISA | PISA |
Country | Uruguay | Uruguay |
Main activity | Investment | Investment |
Direct and indirect participation | 100.00% | 100.00% |
Subsidiary 20 | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | PP | PP |
Country | Argentina | Argentina |
Main activity | Investment | Investment |
Direct and indirect participation | 0.00% | 100.00% |
Subsidiary 21 | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | PPSL | PPSL |
Country | Spain | Spain |
Main activity | Investment | Investment |
Direct and indirect participation | 100.00% | 100.00% |
Subsidiary 22 | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | TGU | TGU |
Country | Uruguay | Uruguay |
Main activity | Gas transportation | Gas transportation |
Direct and indirect participation | 100.00% | 100.00% |
Subsidiary 23 | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | Transelec | Transelec |
Country | Argentina | Argentina |
Main activity | Investment | Investment |
Direct and indirect participation | 100.00% | 100.00% |
Subsidiary 24 | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | Trenerec Energía Bolivia S.A. | Trenerec Energía Bolivia S.A. |
Country | Bolivia | Bolivia |
Main activity | Investment | Investment |
Direct and indirect participation | 100.00% | 100.00% |
Subsidiary 25 | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | Trenerec S.A. | Trenerec S.A. |
Country | Ecuador | Ecuador |
Main activity | Investment | Investment |
Direct and indirect participation | 100.00% | 100.00% |
5. GROUP STRUCTURE (Details 4)
5. GROUP STRUCTURE (Details 4) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Non Current | ||||
Total non current assets | $ 4,322 | $ 4,151 | ||
Borrowings | 1,764 | 1,835 | ||
Total non current liabities | 2,421 | 2,695 | ||
Current | ||||
Cash and cash equivalents | 225 | 241 | $ 31 | $ 69 |
Total current assets | 1,362 | 1,521 | ||
Borrowings | 183 | 342 | ||
Total current liabilities | 854 | 1,182 | ||
Total equity | 2,409 | 1,795 | $ 1,969 | $ 1,607 |
Non-controlling interest | 492 | 429 | ||
Edenor | ||||
Non Current | ||||
Total non current assets | 1,696 | 1,679 | ||
Borrowings | 137 | 191 | ||
Other non current liabilities | 460 | 474 | ||
Total non current liabities | 597 | 665 | ||
Current | ||||
Cash and cash equivalents | 7 | 1 | ||
Other current assets | 292 | 363 | ||
Total current assets | 299 | 364 | ||
Borrowings | 28 | 29 | ||
Other current liabilities | 383 | 528 | ||
Total current liabilities | 411 | 557 | ||
Total equity | 988 | 821 | ||
Non-controlling interest | $ 451 | $ 396 |
5. GROUP STRUCTURE (Details 5)
5. GROUP STRUCTURE (Details 5) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of subsidiaries [line items] | |||
Revenue | $ 2,836 | $ 2,920 | $ 2,175 |
Interest income | 96 | 99 | 62 |
Interest expense | 299 | 316 | 232 |
Profit before income tax | 848 | 224 | 402 |
Income tax | 48 | 17 | (26) |
Profit for the year | 800 | 287 | 378 |
Other comprehensive loss | (35) | 5 | (11) |
Total comprehensive income of the year | 765 | 292 | 367 |
Income of the year attributable to non-controlling interest | 108 | 63 | 92 |
Comprehensive income of the year attributable to non-controlling interest | 93 | 67 | 86 |
Edenor | |||
Disclosure of subsidiaries [line items] | |||
Revenue | 1,502 | 1,484 | 1,050 |
Depreciation | (77) | (68) | (57) |
Interest income | 20 | 18 | 12 |
Interest expense | (113) | (132) | (68) |
Profit before income tax | 381 | 164 | 148 |
Income tax | (178) | (50) | (14) |
Profit for the year | 203 | 114 | 134 |
Other comprehensive loss | 0 | (1) | 0 |
Total comprehensive income of the year | 203 | 113 | 134 |
Income of the year attributable to non-controlling interest | 98 | 55 | 65 |
Other comprehensive income of the year attributable to non-controlling interest | 0 | (1) | 0 |
Comprehensive income of the year attributable to non-controlling interest | $ 98 | $ 54 | $ 65 |
5. GROUP STRUCTURE (Details 6)
5. GROUP STRUCTURE (Details 6) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of subsidiaries [line items] | |||
Net cash generated by operating activities | $ 802 | $ 610 | $ 439 |
Net cash used in investing activities | (369) | 19 | (846) |
Net cash used in financing activities | (390) | (470) | 372 |
(Decrease) increase in cash and cash equivalents | 43 | 159 | (35) |
Cash and cash equivalents at the beginning of the year | 241 | 31 | 69 |
Loss on net monetary position generated by cash and cash equivalents | (59) | 53 | 14 |
Cash and cash equivalents at the end of the year | 225 | 241 | 31 |
Edenor | |||
Disclosure of subsidiaries [line items] | |||
Net cash generated by operating activities | 170 | 255 | 78 |
Net cash used in investing activities | (86) | (221) | (63) |
Net cash used in financing activities | (85) | (56) | (13) |
(Decrease) increase in cash and cash equivalents | (1) | (22) | 2 |
Cash and cash equivalents at the beginning of the year | 0 | 7 | 3 |
Loss on net monetary position generated by cash and cash equivalents | 7 | 19 | 2 |
Cash and cash equivalents at the end of the year | $ 7 | $ 0 | $ 7 |
5. GROUP STRUCTURE (Details 7)
5. GROUP STRUCTURE (Details 7) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of joint ventures [line items] | ||||
Share capital | $ 46 | $ 50 | ||
Profit (loss) for the year | 800 | 287 | $ 378 | |
Total equity | $ 2,409 | $ 1,795 | $ 1,969 | $ 1,607 |
Joint Venture 1 | ||||
Disclosure of joint ventures [line items] | ||||
Joint venture name | CIESA | |||
Main activity | Investment | |||
Share capital | $ 11 | |||
Profit (loss) for the year | 109 | |||
Total equity | $ 405 | |||
Direct and indirect participation | 50.00% | |||
Joint Venture 2 | ||||
Disclosure of joint ventures [line items] | ||||
Joint venture name | Citelec | |||
Main activity | Investment | |||
Share capital | $ 9 | |||
Profit (loss) for the year | 38 | |||
Total equity | $ 176 | |||
Direct and indirect participation | 50.00% | |||
Joint Venture 3 | ||||
Disclosure of joint ventures [line items] | ||||
Joint venture name | Greenwind | |||
Main activity | Generation | |||
Share capital | $ 0 | |||
Profit (loss) for the year | (1) | |||
Total equity | $ (11) | |||
Direct and indirect participation | 50.00% | |||
Joint Venture 4 | ||||
Disclosure of joint ventures [line items] | ||||
Joint venture name | CTB | |||
Main activity | Generation | |||
Share capital | $ 143 | |||
Profit (loss) for the year | 40 | |||
Total equity | $ 227 | |||
Direct and indirect participation | 50.00% | |||
Associate 1 | ||||
Disclosure of joint ventures [line items] | ||||
Associate name | Refinor | |||
Main activity | Refinery | |||
Share capital | $ 2 | |||
Profit (loss) for the year | (3) | |||
Total equity | $ 57 | |||
Direct and indirect participation | 28.50% | |||
Associate 2 | ||||
Disclosure of joint ventures [line items] | ||||
Associate name | OCP | |||
Main activity | Investment | |||
Share capital | $ 100 | |||
Profit (loss) for the year | 22 | |||
Total equity | $ 266 | |||
Direct and indirect participation | 15.91% | |||
Associate 3 | ||||
Disclosure of joint ventures [line items] | ||||
Associate name | TGS | |||
Main activity | Transport of gas | |||
Share capital | $ 13 | |||
Profit (loss) for the year | 214 | |||
Total equity | $ 803 | |||
Direct and indirect participation | 27.19% |
5. GROUP STRUCTURE (Details 8)
5. GROUP STRUCTURE (Details 8) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of joint ventures [line items] | ||
Interests in associates | $ 74 | $ 60 |
Interests in joint ventures | 437 | 347 |
Interests in associates and joint ventures | 511 | 407 |
Investments in joint ventures and associates | 4 | 4 |
CIESA | ||
Disclosure of joint ventures [line items] | ||
Interests in joint ventures | 235 | 259 |
Citelec | ||
Disclosure of joint ventures [line items] | ||
Interests in joint ventures | 88 | 88 |
CTB | ||
Disclosure of joint ventures [line items] | ||
Interests in joint ventures | 114 | 0 |
Greenwind | ||
Disclosure of joint ventures [line items] | ||
Investments in joint ventures and associates | 4 | 4 |
Refinor | ||
Disclosure of joint ventures [line items] | ||
Interests in associates | 20 | 25 |
OCP | ||
Disclosure of joint ventures [line items] | ||
Interests in associates | 33 | 35 |
TGS | ||
Disclosure of joint ventures [line items] | ||
Interests in associates | $ 21 | $ 0 |
5. GROUP STRUCTURE (Details 9)
5. GROUP STRUCTURE (Details 9) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of joint ventures [line items] | |||
Share of profit (loss) of associates | $ 19 | $ 34 | $ (2) |
Share of profit (loss) of joint ventures | 82 | 84 | 50 |
Share of profit (loss) of associates and joint ventures | 101 | 118 | 48 |
CIESA | |||
Disclosure of joint ventures [line items] | |||
Share of profit (loss) of joint ventures | 50 | 74 | 25 |
CTB | |||
Disclosure of joint ventures [line items] | |||
Share of profit (loss) of joint ventures | 13 | 0 | 0 |
Citelec | |||
Disclosure of joint ventures [line items] | |||
Share of profit (loss) of joint ventures | 19 | 21 | 27 |
Greenwind | |||
Disclosure of joint ventures [line items] | |||
Share of profit (loss) of joint ventures | 0 | (11) | (2) |
Oldelval | |||
Disclosure of joint ventures [line items] | |||
Share of profit (loss) of associates | 0 | 3 | 1 |
Refinor | |||
Disclosure of joint ventures [line items] | |||
Share of profit (loss) of associates | (3) | (4) | (3) |
OCP | |||
Disclosure of joint ventures [line items] | |||
Share of profit (loss) of associates | 21 | 35 | 0 |
TGS | |||
Disclosure of joint ventures [line items] | |||
Share of profit (loss) of associates | $ 1 | $ 0 | $ 0 |
5. GROUP STRUCTURE (Details 10)
5. GROUP STRUCTURE (Details 10) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Group Structure | |||
Interests in associates and joint ventures, beginning | $ 403 | $ 315 | $ 255 |
Reclassifications | (16) | 0 | 12 |
Dividends | (75) | (19) | 0 |
Decreases | 0 | (10) | 0 |
Increases | 108 | 0 | 0 |
Share of profit | 101 | 118 | 48 |
Other comprehensive loss | 0 | (1) | 0 |
Exchange differences on translation | (14) | 0 | 0 |
Interests in associates and joint ventures, ending | $ 507 | $ 403 | $ 315 |
5. GROUP STRUCTURE (Details 11)
5. GROUP STRUCTURE (Details 11) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
OCP | |
DisclosureOfInvestmentAquisitionsLineItems [Line Items] | |
Acquisition cost | $ (0.4) |
Contingent consideration | (0.1) |
Total consideration transferred | (0.5) |
Fair value of net assets | 25.7 |
Profit | (25.2) |
Share value of the interest in the fair value of associates's identifiable assets and liabilities | OCP | |
DisclosureOfInvestmentAquisitionsLineItems [Line Items] | |
Fair value of net assets | 9 |
Financial credit with OCP | OCP | |
DisclosureOfInvestmentAquisitionsLineItems [Line Items] | |
Fair value of net assets | 14.2 |
Dividends to be received | OCP | |
DisclosureOfInvestmentAquisitionsLineItems [Line Items] | |
Fair value of net assets | 2.5 |
CTB | |
DisclosureOfInvestmentAquisitionsLineItems [Line Items] | |
Total consideration transferred | (272) |
Fair value of net assets | 272 |
CTB | Financial assets at fair value | |
DisclosureOfInvestmentAquisitionsLineItems [Line Items] | |
Fair value of net assets | 16 |
CTB | Property, plant and equipment | |
DisclosureOfInvestmentAquisitionsLineItems [Line Items] | |
Fair value of net assets | 477 |
CTB | Inventories | |
DisclosureOfInvestmentAquisitionsLineItems [Line Items] | |
Fair value of net assets | 8 |
CTB | VRDs | |
DisclosureOfInvestmentAquisitionsLineItems [Line Items] | |
Fair value of net assets | $ (229) |
5. GROUP STRUCTURE (Details 12)
5. GROUP STRUCTURE (Details 12) | 12 Months Ended | |
Dec. 31, 2019 | ||
Argentinian production 1 | ||
Disclosure of joint operations [line items] | ||
Joint operation name | Río Neuquén | |
Location | Río Negro and Neuquén | |
Direct participation | [1] | |
Indirect participation | 0.00% | |
Operator name | YPF | |
Duration up to | 2027/2051 | |
Argentinian production 2 | ||
Disclosure of joint operations [line items] | ||
Joint operation name | Sierra Chata | |
Location | Neuquén | |
Direct participation | 45.55% | |
Indirect participation | 0.00% | |
Operator name | PAMPA | |
Duration up to | 2053 | |
Argentinian production 3 | ||
Disclosure of joint operations [line items] | ||
Joint operation name | El Mangrullo | |
Location | Neuquén | |
Direct participation | 100.00% | |
Indirect participation | 0.00% | |
Operator name | PAMPA | |
Duration up to | 2053 | |
Argentinian production 4 | ||
Disclosure of joint operations [line items] | ||
Joint operation name | La Tapera - Puesto Quiroga | |
Location | Chubut | |
Direct participation | 35.67% | |
Indirect participation | 0.00% | |
Operator name | Tecpetrol | |
Duration up to | 2027 | |
Argentinian production 5 | ||
Disclosure of joint operations [line items] | ||
Joint operation name | El Tordillo | |
Location | Chubut | |
Direct participation | 35.67% | |
Indirect participation | 0.00% | |
Operator name | Tecpetrol | |
Duration up to | 2027 | |
Argentinian production 6 | ||
Disclosure of joint operations [line items] | ||
Joint operation name | Aguaragüe | |
Location | Salta | |
Direct participation | 15.00% | |
Indirect participation | 0.00% | |
Operator name | Tecpetrol | |
Duration up to | 2023/2027 | |
Argentinian production 7 | ||
Disclosure of joint operations [line items] | ||
Joint operation name | Gobernador Ayala | |
Location | Mendoza | |
Direct participation | 22.51% | |
Indirect participation | 0.00% | |
Operator name | Pluspetrol | |
Duration up to | 2036 | |
Argentinian production 8 | ||
Disclosure of joint operations [line items] | ||
Joint operation name | Anticlinal Campamento | |
Location | Neuquén | |
Direct participation | 15.00% | |
Indirect participation | 0.00% | |
Operator name | Oilstone | |
Duration up to | 2026 | |
Argentinian production 9 | ||
Disclosure of joint operations [line items] | ||
Joint operation name | Estación Fernández Oro | |
Location | Río Negro | |
Direct participation | 15.00% | |
Indirect participation | 0.00% | |
Operator name | YPF | |
Duration up to | 2026 | |
Argentinian production 10 | ||
Disclosure of joint operations [line items] | ||
Joint operation name | Río Limay este (Ex Senillosa) | |
Location | Neuquén | |
Direct participation | 85.00% | |
Indirect participation | 0.00% | |
Operator name | PAMPA | |
Duration up to | 2040 | |
Argentinian production 11 | ||
Disclosure of joint operations [line items] | ||
Joint operation name | Veta Escondida y Rincón de Aranda | |
Location | Neuquén | |
Direct participation | 55.00% | |
Indirect participation | 0.00% | |
Operator name | PAMPA | |
Duration up to | 2027 | |
Argentinian production 12 | ||
Disclosure of joint operations [line items] | ||
Joint operation name | Rincón del Mangrullo | |
Location | Neuquén | |
Direct participation | 50.00% | |
Indirect participation | 0.00% | |
Operator name | YPF | |
Duration up to | 2052 | |
Foreign 1 | ||
Disclosure of joint operations [line items] | ||
Joint operation name | Oritupano - Leona | |
Location | Venezuela | |
Direct participation | 0.00% | |
Indirect participation | 22.00% | |
Operator name | PDVSA | |
Duration up to | 2025 | |
Foreign 2 | ||
Disclosure of joint operations [line items] | ||
Joint operation name | Acema | |
Location | Venezuela | |
Direct participation | 0.00% | |
Indirect participation | 34.49% | |
Operator name | PDVSA | |
Duration up to | 2025 | |
Foreign 3 | ||
Disclosure of joint operations [line items] | ||
Joint operation name | La Concepción | |
Location | Venezuela | |
Direct participation | 0.00% | |
Indirect participation | 36.00% | |
Operator name | PDVSA | |
Duration up to | 2025 | |
Foreign 4 | ||
Disclosure of joint operations [line items] | ||
Joint operation name | Mata | |
Location | Venezuela | |
Direct participation | 0.00% | |
Indirect participation | 34.49% | |
Operator name | PDVSA | |
Duration up to | 2025 | |
Argentinian exploration 1 | ||
Disclosure of joint operations [line items] | ||
Joint operation name | Parva Negra Este | |
Location | Neuquén | |
Direct participation | 42.50% | |
Indirect participation | 0.00% | |
Operator name | PAMPA | |
Duration up to | 2019 | |
Argentinian exploration 2 | ||
Disclosure of joint operations [line items] | ||
Joint operation name | Chirete | |
Location | Salta | |
Direct participation | 50.00% | |
Indirect participation | 0.00% | |
Operator name | High Luck Group Limited | |
Duration up to | 2019 | |
Argentinian exploration 3 | ||
Disclosure of joint operations [line items] | ||
Joint operation name | Río Atuel | |
Location | Mendoza | |
Direct participation | 33.33% | |
Indirect participation | 0.00% | |
Operator name | Petrolera El Trebol | |
Duration up to | 2020 | |
Argentinian exploration 4 | ||
Disclosure of joint operations [line items] | ||
Joint operation name | Borde del Limay | |
Location | Neuquén | |
Direct participation | 85.00% | |
Indirect participation | 0.00% | |
Operator name | PAMPA | |
Duration up to | 2015 | |
Argentinian exploration 5 | ||
Disclosure of joint operations [line items] | ||
Joint operation name | Los Vértices | |
Location | Neuquén | |
Direct participation | 85.00% | |
Indirect participation | 0.00% | |
Operator name | PAMPA | |
Duration up to | 2015 | |
Argentinian exploration 6 | ||
Disclosure of joint operations [line items] | ||
Joint operation name | Las Tacanas Norte | |
Location | Neuquén | |
Direct participation | 90.00% | |
Indirect participation | 0.00% | |
Operator name | PAMPA | |
Duration up to | 2023 | |
[1] | 31.43% and 33.07% |
5. GROUP STRUCTURE (Details 13)
5. GROUP STRUCTURE (Details 13) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Group Structure | |||
Exploratory well costs, beginning | $ 19 | $ 15 | $ 16 |
Increases | 30 | 8 | 8 |
Transferred to development | (11) | 0 | (8) |
Loss of the year | (5) | (1) | (1) |
Exploratory well costs, ending | $ 33 | $ 19 | $ 15 |
Number of wells at the end of the year | 9 | 7 | 7 |
6. RISKS (Details)
6. RISKS (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
DisclosureOfVariationOfTheResultOfTheYearExposureToPriceRiskLineItems [Line Items] | ||
Variation of the result for the year | $ 37 | $ 42 |
Shares | ||
DisclosureOfVariationOfTheResultOfTheYearExposureToPriceRiskLineItems [Line Items] | ||
Variation of the result for the year | 2 | 1 |
Government securities | ||
DisclosureOfVariationOfTheResultOfTheYearExposureToPriceRiskLineItems [Line Items] | ||
Variation of the result for the year | 11 | 30 |
Investment funds | ||
DisclosureOfVariationOfTheResultOfTheYearExposureToPriceRiskLineItems [Line Items] | ||
Variation of the result for the year | $ 24 | $ 11 |
6. RISKS (Details 1)
6. RISKS (Details 1) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of detailed information about borrowings [line items] | ||||
Total borrowings | $ 1,947 | $ 2,177 | $ 1,683 | $ 1,269 |
Fixed interest rate | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Total borrowings | 1,830 | 1,876 | ||
Fixed interest rate | Argentinian pesos | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Total borrowings | 143 | 15 | ||
Fixed interest rate | US Dollar | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Total borrowings | 1,687 | 1,861 | ||
Floating interest rates | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Total borrowings | 74 | 239 | ||
Floating interest rates | Argentinian pesos | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Total borrowings | 10 | 108 | ||
Floating interest rates | US Dollar | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Total borrowings | 64 | 131 | ||
Non interest accrual | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Total borrowings | 43 | 62 | ||
Non interest accrual | Argentinian pesos | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Total borrowings | 17 | 30 | ||
Non interest accrual | US Dollar | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Total borrowings | $ 26 | $ 32 |
6. RISKS (Details 2)
6. RISKS (Details 2) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Undue | Generation | |||
DisclosureOfCreditLossRatesOnTradeReceivablesAndFinancialAssetsLineItems [Line Items] | |||
Credit loss on trade receivables and financial assets | 0.10% | 0.04% | |
Undue | Oil and Gas | |||
DisclosureOfCreditLossRatesOnTradeReceivablesAndFinancialAssetsLineItems [Line Items] | |||
Credit loss on trade receivables and financial assets | 0.53% | 2.20% | |
Undue | Distribution of energy | |||
DisclosureOfCreditLossRatesOnTradeReceivablesAndFinancialAssetsLineItems [Line Items] | |||
Credit loss on trade receivables and financial assets | 3.00% | 8.00% | 8.00% |
Undue | Petrochemicals | |||
DisclosureOfCreditLossRatesOnTradeReceivablesAndFinancialAssetsLineItems [Line Items] | |||
Credit loss on trade receivables and financial assets | 0.39% | 0.03% | |
Undue | Holding | |||
DisclosureOfCreditLossRatesOnTradeReceivablesAndFinancialAssetsLineItems [Line Items] | |||
Credit loss on trade receivables and financial assets | 1.85% | 0.96% | |
Undue | Rest of business segments | |||
DisclosureOfCreditLossRatesOnTradeReceivablesAndFinancialAssetsLineItems [Line Items] | |||
Credit loss on trade receivables and financial assets | 0.32% | ||
30 days | Generation | |||
DisclosureOfCreditLossRatesOnTradeReceivablesAndFinancialAssetsLineItems [Line Items] | |||
Credit loss on trade receivables and financial assets | 0.35% | 0.09% | |
30 days | Oil and Gas | |||
DisclosureOfCreditLossRatesOnTradeReceivablesAndFinancialAssetsLineItems [Line Items] | |||
Credit loss on trade receivables and financial assets | 1.49% | 4.42% | |
30 days | Distribution of energy | |||
DisclosureOfCreditLossRatesOnTradeReceivablesAndFinancialAssetsLineItems [Line Items] | |||
Credit loss on trade receivables and financial assets | 3.00% | 8.00% | 8.00% |
30 days | Petrochemicals | |||
DisclosureOfCreditLossRatesOnTradeReceivablesAndFinancialAssetsLineItems [Line Items] | |||
Credit loss on trade receivables and financial assets | 0.73% | 0.08% | |
30 days | Holding | |||
DisclosureOfCreditLossRatesOnTradeReceivablesAndFinancialAssetsLineItems [Line Items] | |||
Credit loss on trade receivables and financial assets | 2.81% | 1.25% | |
30 days | Rest of business segments | |||
DisclosureOfCreditLossRatesOnTradeReceivablesAndFinancialAssetsLineItems [Line Items] | |||
Credit loss on trade receivables and financial assets | 0.93% | ||
60 days | Generation | |||
DisclosureOfCreditLossRatesOnTradeReceivablesAndFinancialAssetsLineItems [Line Items] | |||
Credit loss on trade receivables and financial assets | 1.99% | 2.62% | |
60 days | Oil and Gas | |||
DisclosureOfCreditLossRatesOnTradeReceivablesAndFinancialAssetsLineItems [Line Items] | |||
Credit loss on trade receivables and financial assets | 9.45% | 11.00% | |
60 days | Distribution of energy | |||
DisclosureOfCreditLossRatesOnTradeReceivablesAndFinancialAssetsLineItems [Line Items] | |||
Credit loss on trade receivables and financial assets | 8.00% | 12.00% | 12.00% |
60 days | Petrochemicals | |||
DisclosureOfCreditLossRatesOnTradeReceivablesAndFinancialAssetsLineItems [Line Items] | |||
Credit loss on trade receivables and financial assets | 6.88% | 1.41% | |
60 days | Holding | |||
DisclosureOfCreditLossRatesOnTradeReceivablesAndFinancialAssetsLineItems [Line Items] | |||
Credit loss on trade receivables and financial assets | 6.84% | 2.03% | |
60 days | Rest of business segments | |||
DisclosureOfCreditLossRatesOnTradeReceivablesAndFinancialAssetsLineItems [Line Items] | |||
Credit loss on trade receivables and financial assets | 8.11% | ||
90 days | Generation | |||
DisclosureOfCreditLossRatesOnTradeReceivablesAndFinancialAssetsLineItems [Line Items] | |||
Credit loss on trade receivables and financial assets | 2.95% | 3.39% | |
90 days | Oil and Gas | |||
DisclosureOfCreditLossRatesOnTradeReceivablesAndFinancialAssetsLineItems [Line Items] | |||
Credit loss on trade receivables and financial assets | 18.03% | 20.42% | |
90 days | Distribution of energy | |||
DisclosureOfCreditLossRatesOnTradeReceivablesAndFinancialAssetsLineItems [Line Items] | |||
Credit loss on trade receivables and financial assets | 18.00% | 19.00% | 19.00% |
90 days | Petrochemicals | |||
DisclosureOfCreditLossRatesOnTradeReceivablesAndFinancialAssetsLineItems [Line Items] | |||
Credit loss on trade receivables and financial assets | 16.66% | 4.98% | |
90 days | Holding | |||
DisclosureOfCreditLossRatesOnTradeReceivablesAndFinancialAssetsLineItems [Line Items] | |||
Credit loss on trade receivables and financial assets | 17.15% | 2.85% | |
90 days | Rest of business segments | |||
DisclosureOfCreditLossRatesOnTradeReceivablesAndFinancialAssetsLineItems [Line Items] | |||
Credit loss on trade receivables and financial assets | 19.61% | ||
120 days | Generation | |||
DisclosureOfCreditLossRatesOnTradeReceivablesAndFinancialAssetsLineItems [Line Items] | |||
Credit loss on trade receivables and financial assets | 4.03% | 9.37% | |
120 days | Oil and Gas | |||
DisclosureOfCreditLossRatesOnTradeReceivablesAndFinancialAssetsLineItems [Line Items] | |||
Credit loss on trade receivables and financial assets | 18.50% | 42.85% | |
120 days | Distribution of energy | |||
DisclosureOfCreditLossRatesOnTradeReceivablesAndFinancialAssetsLineItems [Line Items] | |||
Credit loss on trade receivables and financial assets | 20.00% | 26.00% | 26.00% |
120 days | Petrochemicals | |||
DisclosureOfCreditLossRatesOnTradeReceivablesAndFinancialAssetsLineItems [Line Items] | |||
Credit loss on trade receivables and financial assets | 25.32% | 11.52% | |
120 days | Holding | |||
DisclosureOfCreditLossRatesOnTradeReceivablesAndFinancialAssetsLineItems [Line Items] | |||
Credit loss on trade receivables and financial assets | 26.77% | 19.86% | |
120 days | Rest of business segments | |||
DisclosureOfCreditLossRatesOnTradeReceivablesAndFinancialAssetsLineItems [Line Items] | |||
Credit loss on trade receivables and financial assets | 35.69% | ||
150 days | Generation | |||
DisclosureOfCreditLossRatesOnTradeReceivablesAndFinancialAssetsLineItems [Line Items] | |||
Credit loss on trade receivables and financial assets | 5.59% | 13.56% | |
150 days | Oil and Gas | |||
DisclosureOfCreditLossRatesOnTradeReceivablesAndFinancialAssetsLineItems [Line Items] | |||
Credit loss on trade receivables and financial assets | 18.81% | 47.32% | |
150 days | Distribution of energy | |||
DisclosureOfCreditLossRatesOnTradeReceivablesAndFinancialAssetsLineItems [Line Items] | |||
Credit loss on trade receivables and financial assets | 45.00% | 59.00% | 59.00% |
150 days | Petrochemicals | |||
DisclosureOfCreditLossRatesOnTradeReceivablesAndFinancialAssetsLineItems [Line Items] | |||
Credit loss on trade receivables and financial assets | 29.59% | 20.36% | |
150 days | Holding | |||
DisclosureOfCreditLossRatesOnTradeReceivablesAndFinancialAssetsLineItems [Line Items] | |||
Credit loss on trade receivables and financial assets | 43.21% | 26.41% | |
150 days | Rest of business segments | |||
DisclosureOfCreditLossRatesOnTradeReceivablesAndFinancialAssetsLineItems [Line Items] | |||
Credit loss on trade receivables and financial assets | 45.63% | ||
180 days | Generation | |||
DisclosureOfCreditLossRatesOnTradeReceivablesAndFinancialAssetsLineItems [Line Items] | |||
Credit loss on trade receivables and financial assets | 9.79% | 19.82% | |
180 days | Oil and Gas | |||
DisclosureOfCreditLossRatesOnTradeReceivablesAndFinancialAssetsLineItems [Line Items] | |||
Credit loss on trade receivables and financial assets | 18.90% | 49.20% | |
180 days | Distribution of energy | |||
DisclosureOfCreditLossRatesOnTradeReceivablesAndFinancialAssetsLineItems [Line Items] | |||
Credit loss on trade receivables and financial assets | 72.00% | 69.00% | 69.00% |
180 days | Petrochemicals | |||
DisclosureOfCreditLossRatesOnTradeReceivablesAndFinancialAssetsLineItems [Line Items] | |||
Credit loss on trade receivables and financial assets | 30.97% | 24.91% | |
180 days | Holding | |||
DisclosureOfCreditLossRatesOnTradeReceivablesAndFinancialAssetsLineItems [Line Items] | |||
Credit loss on trade receivables and financial assets | 49.89% | 32.95% | |
180 days | Rest of business segments | |||
DisclosureOfCreditLossRatesOnTradeReceivablesAndFinancialAssetsLineItems [Line Items] | |||
Credit loss on trade receivables and financial assets | 59.00% | ||
+180 days | Generation | |||
DisclosureOfCreditLossRatesOnTradeReceivablesAndFinancialAssetsLineItems [Line Items] | |||
Credit loss on trade receivables and financial assets | 16.13% | 28.88% | |
+180 days | Oil and Gas | |||
DisclosureOfCreditLossRatesOnTradeReceivablesAndFinancialAssetsLineItems [Line Items] | |||
Credit loss on trade receivables and financial assets | 18.92% | 56.32% | |
+180 days | Distribution of energy | |||
DisclosureOfCreditLossRatesOnTradeReceivablesAndFinancialAssetsLineItems [Line Items] | |||
Credit loss on trade receivables and financial assets | 72.00% | 69.00% | 69.00% |
+180 days | Petrochemicals | |||
DisclosureOfCreditLossRatesOnTradeReceivablesAndFinancialAssetsLineItems [Line Items] | |||
Credit loss on trade receivables and financial assets | 43.05% | 25.24% | |
+180 days | Holding | |||
DisclosureOfCreditLossRatesOnTradeReceivablesAndFinancialAssetsLineItems [Line Items] | |||
Credit loss on trade receivables and financial assets | 65.29% | 32.97% | |
+180 days | Rest of business segments | |||
DisclosureOfCreditLossRatesOnTradeReceivablesAndFinancialAssetsLineItems [Line Items] | |||
Credit loss on trade receivables and financial assets | 63.01% |
6. RISKS (Details 3)
6. RISKS (Details 3) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Financial assets | |
AllowanceAccountForCreditLossesOfFinancialAssetsLineItems [Line Items] | |
Loss allowance under IAS 39 | $ 22 |
Adjustment to the opening balance of retained earnings | 4 |
Loss allowance calculated under IFRS 9 | 26 |
Other receivables | |
AllowanceAccountForCreditLossesOfFinancialAssetsLineItems [Line Items] | |
Loss allowance under IAS 39 | 7 |
Adjustment to the opening balance of retained earnings | (1) |
Loss allowance calculated under IFRS 9 | $ 6 |
6. RISKS (Details 4)
6. RISKS (Details 4) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Risks | ||
Current assets | $ 1,362 | $ 1,521 |
Current liabilities | $ 854 | $ 1,182 |
Liquidity index | 1.59% | 1.29% |
6. RISKS (Details 5)
6. RISKS (Details 5) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Trade and other payables | $ 544 | $ 877 |
Borrowings | 2,638 | 2,541 |
Total | 3,182 | 3,418 |
Less than three months | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Trade and other payables | 0 | 331 |
Borrowings | 95 | 112 |
Total | 95 | 443 |
Three months to one year | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Trade and other payables | 454 | 534 |
Borrowings | 188 | 318 |
Total | 642 | 852 |
One to two years | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Trade and other payables | 11 | 9 |
Borrowings | 288 | 242 |
Total | 299 | 251 |
Two to five years | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Trade and other payables | 70 | 3 |
Borrowings | 834 | 892 |
Total | 904 | 895 |
More than five years | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Trade and other payables | 9 | 0 |
Borrowings | 1,233 | 977 |
Total | $ 1,242 | $ 977 |
6. RISKS (Details 6)
6. RISKS (Details 6) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Risks | ||||
Total borrowings | $ 1,947 | $ 2,177 | $ 1,683 | $ 1,269 |
Less: cash and cash equivalents, and financial assets at fair value through profit and loss | (590) | (646) | ||
Net debt | 1,357 | 1,531 | ||
Total capital attributable to owners | $ 3,274 | $ 2,897 | ||
Leverage ratio | 41.45% | 52.85% |
7. SEGMENT INFORMATION (Details
7. SEGMENT INFORMATION (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of operating segments [line items] | |||
Revenue | $ 2,836 | $ 2,920 | $ 2,175 |
Intersegment sales | 0 | 0 | 0 |
Cost of sales | (2,032) | (1,967) | (1,574) |
Gross profit (loss) | 804 | 953 | 601 |
Selling expenses | (148) | (171) | (127) |
Administrative expenses | (174) | (206) | (198) |
Exploration expenses | (9) | (1) | (2) |
Other operating income | 40 | 181 | 149 |
Other operating expenses | (86) | (200) | (103) |
Impairment of property, plant and equipment and intangible assets | (62) | (32) | 0 |
Share of profit (loss) of associates and joint ventures | 101 | 118 | 48 |
Income from the sale of associates | 0 | 28 | 0 |
Agreement on the regularization of obligations | 285 | 0 | 0 |
Operating income (loss) | 751 | 670 | 368 |
Gain (loss) on net monetary position, net | 187 | 629 | 304 |
Financial income | 96 | 99 | 62 |
Financial costs | (299) | (316) | (232) |
Other financial results | 113 | (858) | (100) |
Financial results, net | 97 | (446) | 34 |
Profit (loss) before income tax | 848 | 224 | 402 |
Income tax | (48) | (17) | 26 |
Profit (loss) for the year from continuing operations | 800 | 207 | 428 |
Profit (loss) for the year from discontinued operations | 0 | 80 | (50) |
Profit (loss) for the year | 800 | 287 | 378 |
Depreciation and amortization | 263 | 234 | 205 |
Total profit (loss) attributable to: | |||
Owners of the company | 692 | 224 | 286 |
Non - controlling interest | 108 | 63 | 92 |
Assets | 5,684 | 5,672 | 5,657 |
Liabilities | 3,275 | 3,877 | 3,687 |
Increases in property, plant and equipment, intangibles assets and right-of-use assets | 611 | 665 | 657 |
Net book values of property, plant and equipment | 3,507 | 3,316 | |
Generation | |||
Disclosure of operating segments [line items] | |||
Revenue | 819 | 604 | 351 |
Intersegment sales | 0 | 2 | 2 |
Cost of sales | (466) | (273) | (195) |
Gross profit (loss) | 353 | 333 | 158 |
Selling expenses | (3) | (1) | (4) |
Administrative expenses | (36) | (41) | (32) |
Exploration expenses | 0 | 0 | 0 |
Other operating income | 9 | 11 | 19 |
Other operating expenses | (11) | (17) | (9) |
Impairment of property, plant and equipment and intangible assets | (52) | 0 | |
Share of profit (loss) of associates and joint ventures | 13 | (11) | (2) |
Income from the sale of associates | 0 | ||
Agreement on the regularization of obligations | 0 | ||
Operating income (loss) | 273 | 274 | 130 |
Gain (loss) on net monetary position, net | 0 | 233 | 17 |
Financial income | 51 | 52 | 39 |
Financial costs | (82) | (85) | (69) |
Other financial results | 86 | (365) | (34) |
Financial results, net | 55 | (165) | (47) |
Profit (loss) before income tax | 328 | 109 | 83 |
Income tax | (80) | (3) | (4) |
Profit (loss) for the year from continuing operations | 106 | 79 | |
Profit (loss) for the year from discontinued operations | 0 | 0 | |
Profit (loss) for the year | 248 | 106 | 79 |
Depreciation and amortization | 71 | 66 | |
Total profit (loss) attributable to: | |||
Owners of the company | 239 | 100 | 75 |
Non - controlling interest | 9 | 6 | 4 |
Assets | 1,472 | 1,414 | 1,115 |
Liabilities | 1,226 | 1,054 | 333 |
Increases in property, plant and equipment, intangibles assets and right-of-use assets | 240 | 235 | 275 |
Net book values of property, plant and equipment | 1,152 | 1,036 | |
Distribution of energy | |||
Disclosure of operating segments [line items] | |||
Revenue | 1,502 | 1,484 | 1,050 |
Intersegment sales | 0 | 0 | 0 |
Cost of sales | (1,225) | (1,136) | (799) |
Gross profit (loss) | 277 | 348 | 251 |
Selling expenses | (122) | (134) | (95) |
Administrative expenses | (65) | (76) | (66) |
Exploration expenses | 0 | 0 | 0 |
Other operating income | 10 | 9 | 4 |
Other operating expenses | (43) | (44) | (33) |
Impairment of property, plant and equipment and intangible assets | 0 | 0 | |
Share of profit (loss) of associates and joint ventures | 0 | 0 | 0 |
Income from the sale of associates | 0 | ||
Agreement on the regularization of obligations | 285 | ||
Operating income (loss) | 342 | 103 | 61 |
Gain (loss) on net monetary position, net | 187 | 226 | 145 |
Financial income | 20 | 18 | 12 |
Financial costs | (112) | (132) | (69) |
Other financial results | (62) | (50) | 1 |
Financial results, net | 33 | 62 | 89 |
Profit (loss) before income tax | 375 | 165 | 150 |
Income tax | (178) | (49) | (12) |
Profit (loss) for the year from continuing operations | 116 | 138 | |
Profit (loss) for the year from discontinued operations | 0 | 0 | |
Profit (loss) for the year | 197 | 116 | 138 |
Depreciation and amortization | 79 | 69 | |
Total profit (loss) attributable to: | |||
Owners of the company | 98 | 61 | 73 |
Non - controlling interest | 99 | 55 | 65 |
Assets | 1,480 | 2,133 | 1,972 |
Liabilities | 1,792 | 1,241 | 1,166 |
Increases in property, plant and equipment, intangibles assets and right-of-use assets | 173 | 227 | 225 |
Net book values of property, plant and equipment | 1,691 | 1,657 | |
Oil and gas | |||
Disclosure of operating segments [line items] | |||
Revenue | 174 | 458 | 443 |
Intersegment sales | 270 | 63 | 19 |
Cost of sales | (313) | (287) | (310) |
Gross profit (loss) | 131 | 234 | 152 |
Selling expenses | (12) | (19) | (17) |
Administrative expenses | (47) | (56) | (54) |
Exploration expenses | (9) | (1) | (2) |
Other operating income | 8 | 141 | 110 |
Other operating expenses | (11) | (114) | (38) |
Impairment of property, plant and equipment and intangible assets | (10) | 0 | |
Share of profit (loss) of associates and joint ventures | 21 | 37 | 1 |
Income from the sale of associates | 28 | ||
Agreement on the regularization of obligations | 0 | ||
Operating income (loss) | 71 | 250 | 152 |
Gain (loss) on net monetary position, net | 0 | 107 | (18) |
Financial income | 18 | 15 | 6 |
Financial costs | (94) | (79) | (78) |
Other financial results | 84 | (512) | (93) |
Financial results, net | 8 | (469) | (183) |
Profit (loss) before income tax | 79 | (219) | (31) |
Income tax | (16) | 57 | 24 |
Profit (loss) for the year from continuing operations | (162) | (7) | |
Profit (loss) for the year from discontinued operations | 49 | (35) | |
Profit (loss) for the year | 63 | (113) | (42) |
Depreciation and amortization | 112 | 92 | |
Total profit (loss) attributable to: | |||
Owners of the company | 63 | (115) | (62) |
Non - controlling interest | 0 | 2 | 20 |
Assets | 1,261 | 1,237 | 1,154 |
Liabilities | 465 | 1,273 | 444 |
Increases in property, plant and equipment, intangibles assets and right-of-use assets | 191 | 192 | 140 |
Net book values of property, plant and equipment | 612 | 554 | |
Petrochemicals | |||
Disclosure of operating segments [line items] | |||
Revenue | 321 | 338 | 314 |
Intersegment sales | 0 | 0 | 0 |
Cost of sales | (298) | (334) | (290) |
Gross profit (loss) | 23 | 4 | 24 |
Selling expenses | (9) | (13) | (12) |
Administrative expenses | (4) | (6) | (16) |
Exploration expenses | 0 | 0 | 0 |
Other operating income | 4 | 5 | 3 |
Other operating expenses | (9) | (20) | (10) |
Impairment of property, plant and equipment and intangible assets | 0 | (32) | |
Share of profit (loss) of associates and joint ventures | 0 | 0 | 0 |
Income from the sale of associates | 0 | ||
Agreement on the regularization of obligations | 0 | ||
Operating income (loss) | 5 | (62) | (11) |
Gain (loss) on net monetary position, net | 0 | 49 | 2 |
Financial income | 1 | 1 | 0 |
Financial costs | (8) | (15) | (10) |
Other financial results | 18 | (39) | (6) |
Financial results, net | 11 | (4) | (14) |
Profit (loss) before income tax | 16 | (66) | (25) |
Income tax | (5) | 12 | 19 |
Profit (loss) for the year from continuing operations | (54) | (6) | |
Profit (loss) for the year from discontinued operations | 0 | 0 | |
Profit (loss) for the year | 11 | (54) | (6) |
Depreciation and amortization | 1 | 6 | |
Total profit (loss) attributable to: | |||
Owners of the company | 11 | (54) | (6) |
Non - controlling interest | 0 | 0 | 0 |
Assets | 136 | 153 | 141 |
Liabilities | 122 | 198 | 94 |
Increases in property, plant and equipment, intangibles assets and right-of-use assets | 4 | 4 | 5 |
Net book values of property, plant and equipment | 18 | 15 | |
Holding and others | |||
Disclosure of operating segments [line items] | |||
Revenue | 20 | 36 | 17 |
Intersegment sales | 0 | 0 | 0 |
Cost of sales | 0 | 0 | (1) |
Gross profit (loss) | 20 | 36 | 16 |
Selling expenses | (2) | (4) | 0 |
Administrative expenses | (22) | (27) | (30) |
Exploration expenses | 0 | 0 | 0 |
Other operating income | 9 | 15 | 13 |
Other operating expenses | (12) | (6) | (13) |
Impairment of property, plant and equipment and intangible assets | 0 | 0 | |
Share of profit (loss) of associates and joint ventures | 67 | 92 | 49 |
Income from the sale of associates | 0 | ||
Agreement on the regularization of obligations | 0 | ||
Operating income (loss) | 60 | 106 | 35 |
Gain (loss) on net monetary position, net | 0 | 12 | 158 |
Financial income | 7 | 14 | 7 |
Financial costs | (4) | (6) | (8) |
Other financial results | (13) | 108 | 32 |
Financial results, net | (10) | 128 | 189 |
Profit (loss) before income tax | 50 | 234 | 224 |
Income tax | 231 | (34) | (1) |
Profit (loss) for the year from continuing operations | 200 | 223 | |
Profit (loss) for the year from discontinued operations | 31 | (16) | |
Profit (loss) for the year | 281 | 231 | 207 |
Depreciation and amortization | 0 | 1 | |
Total profit (loss) attributable to: | |||
Owners of the company | 281 | 231 | 207 |
Non - controlling interest | 0 | 0 | 0 |
Assets | 1,527 | 872 | 1,475 |
Liabilities | (160) | 247 | 1,850 |
Increases in property, plant and equipment, intangibles assets and right-of-use assets | 3 | 7 | 12 |
Net book values of property, plant and equipment | 34 | 54 | |
Eliminations | |||
Disclosure of operating segments [line items] | |||
Revenue | 0 | 0 | 0 |
Intersegment sales | (270) | (65) | (21) |
Cost of sales | 270 | 63 | 21 |
Gross profit (loss) | 0 | (2) | 0 |
Selling expenses | 0 | 0 | 1 |
Administrative expenses | 0 | 0 | 0 |
Exploration expenses | 0 | 0 | 0 |
Other operating income | 0 | 0 | 0 |
Other operating expenses | 0 | 1 | 0 |
Impairment of property, plant and equipment and intangible assets | 0 | 0 | |
Share of profit (loss) of associates and joint ventures | 0 | 0 | 0 |
Income from the sale of associates | 0 | ||
Agreement on the regularization of obligations | 0 | ||
Operating income (loss) | 0 | (1) | 1 |
Gain (loss) on net monetary position, net | 0 | 2 | 0 |
Financial income | (1) | (1) | (2) |
Financial costs | 1 | 1 | 2 |
Other financial results | 0 | 0 | 0 |
Financial results, net | 0 | 2 | 0 |
Profit (loss) before income tax | 0 | 1 | 1 |
Income tax | 0 | 0 | 0 |
Profit (loss) for the year from continuing operations | 1 | 1 | |
Profit (loss) for the year from discontinued operations | 0 | 1 | |
Profit (loss) for the year | 0 | 1 | 2 |
Depreciation and amortization | 0 | 0 | |
Total profit (loss) attributable to: | |||
Owners of the company | 0 | 1 | 2 |
Non - controlling interest | 0 | 0 | 0 |
Assets | (192) | (137) | (200) |
Liabilities | (170) | (136) | (200) |
Increases in property, plant and equipment, intangibles assets and right-of-use assets | 0 | 0 | $ 0 |
Net book values of property, plant and equipment | $ 0 | $ 0 |
8. REVENUE (Details)
8. REVENUE (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
DisclosureOfRevenueLineItems [Line Items] | |||
Revenue | $ 2,836 | $ 2,920 | $ 2,175 |
Generation | |||
DisclosureOfRevenueLineItems [Line Items] | |||
Revenue | 819 | 604 | 351 |
Generation | Energy sales to the Spot Market | |||
DisclosureOfRevenueLineItems [Line Items] | |||
Revenue | 251 | 274 | 231 |
Generation | Energy sales by supply contracts | |||
DisclosureOfRevenueLineItems [Line Items] | |||
Revenue | 285 | 278 | 114 |
Generation | Fuel self-supply | |||
DisclosureOfRevenueLineItems [Line Items] | |||
Revenue | 281 | 51 | 4 |
Generation | Other sales | |||
DisclosureOfRevenueLineItems [Line Items] | |||
Revenue | 2 | 1 | 2 |
Distribution | |||
DisclosureOfRevenueLineItems [Line Items] | |||
Revenue | 1,502 | 1,484 | 1,050 |
Distribution | Energy sales | |||
DisclosureOfRevenueLineItems [Line Items] | |||
Revenue | 1,496 | 1,477 | 1,042 |
Distribution | Right of use of poles | |||
DisclosureOfRevenueLineItems [Line Items] | |||
Revenue | 5 | 5 | 6 |
Distribution | Connection and reconnection charges | |||
DisclosureOfRevenueLineItems [Line Items] | |||
Revenue | 1 | 2 | 2 |
Oil and gas | |||
DisclosureOfRevenueLineItems [Line Items] | |||
Revenue | 174 | 458 | 443 |
Oil and gas | Other sales | |||
DisclosureOfRevenueLineItems [Line Items] | |||
Revenue | 3 | 4 | 25 |
Oil and gas | Oil, Gas and liquid sales | |||
DisclosureOfRevenueLineItems [Line Items] | |||
Revenue | 171 | 454 | 418 |
Holding and others | |||
DisclosureOfRevenueLineItems [Line Items] | |||
Revenue | 20 | 338 | 314 |
Holding and others | Other sales | |||
DisclosureOfRevenueLineItems [Line Items] | |||
Revenue | 36 | 17 | |
Holding and others | Technical assistance services and administartion sales | |||
DisclosureOfRevenueLineItems [Line Items] | |||
Revenue | 20 | 36 | 17 |
Petrochemicals | |||
DisclosureOfRevenueLineItems [Line Items] | |||
Revenue | 321 | 2,920 | 2,175 |
Petrochemicals | Petrochemicals sales | |||
DisclosureOfRevenueLineItems [Line Items] | |||
Revenue | $ 321 | $ 338 | $ 314 |
9. COST OF SALES (Details)
9. COST OF SALES (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
DisclosureOfCostOfSalesLineItems [Line Items] | |||
Inventory, beginning | $ 137 | $ 113 | $ 164 |
Charges for the year | 2,048 | 1,991 | 1,523 |
Gain on monetary position | 1 | 0 | 0 |
Less: Inventories at the end of the year | (153) | (137) | (113) |
Total cost of sales | 2,032 | 1,967 | 1,574 |
Purchases of inventories, energy and gas | |||
DisclosureOfCostOfSalesLineItems [Line Items] | |||
Charges for the year | 1,305 | 1,224 | 874 |
Salaries and social security charges | |||
DisclosureOfCostOfSalesLineItems [Line Items] | |||
Charges for the year | 163 | 181 | 202 |
Benefits to the employees | |||
DisclosureOfCostOfSalesLineItems [Line Items] | |||
Charges for the year | 9 | 6 | 7 |
Accrual of defined benefit plans | |||
DisclosureOfCostOfSalesLineItems [Line Items] | |||
Charges for the year | 7 | 4 | 7 |
Work contracts, fees and compensation for services | |||
DisclosureOfCostOfSalesLineItems [Line Items] | |||
Charges for the year | 103 | 98 | 84 |
Depreciation of property, plant and equipment | |||
DisclosureOfCostOfSalesLineItems [Line Items] | |||
Charges for the year | 232 | 206 | 195 |
Intangible assets amortization | |||
DisclosureOfCostOfSalesLineItems [Line Items] | |||
Charges for the year | 7 | 7 | 1 |
Right-of-use assets amortization | |||
DisclosureOfCostOfSalesLineItems [Line Items] | |||
Charges for the year | 2 | 0 | 0 |
Transport of energy | |||
DisclosureOfCostOfSalesLineItems [Line Items] | |||
Charges for the year | 4 | 4 | 3 |
Transportation and freights | |||
DisclosureOfCostOfSalesLineItems [Line Items] | |||
Charges for the year | 18 | 14 | 3 |
Consumption of materials | |||
DisclosureOfCostOfSalesLineItems [Line Items] | |||
Charges for the year | 48 | 64 | 29 |
Penalties | |||
DisclosureOfCostOfSalesLineItems [Line Items] | |||
Charges for the year | 25 | 56 | 11 |
Maintenance | |||
DisclosureOfCostOfSalesLineItems [Line Items] | |||
Charges for the year | 27 | 24 | 18 |
Canons and Royalties | |||
DisclosureOfCostOfSalesLineItems [Line Items] | |||
Charges for the year | 59 | 74 | 56 |
Environmental control | |||
DisclosureOfCostOfSalesLineItems [Line Items] | |||
Charges for the year | 3 | 5 | 3 |
Rental and insurance | |||
DisclosureOfCostOfSalesLineItems [Line Items] | |||
Charges for the year | 21 | 13 | 11 |
Surveillance and security | |||
DisclosureOfCostOfSalesLineItems [Line Items] | |||
Charges for the year | 6 | 6 | 6 |
Taxes, rates and contributions | |||
DisclosureOfCostOfSalesLineItems [Line Items] | |||
Charges for the year | 4 | 5 | 3 |
Other | |||
DisclosureOfCostOfSalesLineItems [Line Items] | |||
Charges for the year | $ 5 | $ 0 | $ 10 |
10. OTHER ITEMS OF THE STATEM_3
10. OTHER ITEMS OF THE STATEMENT OF COMPREHENSIVE INCOME (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
DisclosureOfSellingExpensesLineItems [Line Items] | |||
Selling expenses | $ 148 | $ 171 | $ 127 |
Salaries and social security charges | |||
DisclosureOfSellingExpensesLineItems [Line Items] | |||
Selling expenses | 22 | 26 | 27 |
Benefits to employees | |||
DisclosureOfSellingExpensesLineItems [Line Items] | |||
Selling expenses | 1 | 0 | 0 |
Accrual of defined benefit plans | |||
DisclosureOfSellingExpensesLineItems [Line Items] | |||
Selling expenses | 1 | 0 | 1 |
Work contracts, fees and compensation for services | |||
DisclosureOfSellingExpensesLineItems [Line Items] | |||
Selling expenses | 29 | 30 | 26 |
Compensation agreements | |||
DisclosureOfSellingExpensesLineItems [Line Items] | |||
Selling expenses | (1) | 2 | 6 |
Depreciation of property, plant and equipment | |||
DisclosureOfSellingExpensesLineItems [Line Items] | |||
Selling expenses | 9 | 9 | 3 |
Right-of-use assets amortization | |||
DisclosureOfSellingExpensesLineItems [Line Items] | |||
Selling expenses | 1 | 0 | 0 |
Taxes, rates and contributions | |||
DisclosureOfSellingExpensesLineItems [Line Items] | |||
Selling expenses | 25 | 33 | 28 |
Communications | |||
DisclosureOfSellingExpensesLineItems [Line Items] | |||
Selling expenses | 6 | 7 | 8 |
Penalties | |||
DisclosureOfSellingExpensesLineItems [Line Items] | |||
Selling expenses | 22 | 28 | 12 |
Net impairment losses on financial assets | |||
DisclosureOfSellingExpensesLineItems [Line Items] | |||
Selling expenses | 21 | 28 | 11 |
Transport | |||
DisclosureOfSellingExpensesLineItems [Line Items] | |||
Selling expenses | 9 | 6 | 4 |
Other | |||
DisclosureOfSellingExpensesLineItems [Line Items] | |||
Selling expenses | $ 3 | $ 2 | $ 1 |
10. OTHER ITEMS OF THE STATEM_4
10. OTHER ITEMS OF THE STATEMENT OF COMPREHENSIVE INCOME (Details 1) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
DisclosureOfAdministrativeExpensesLineItems [Line Items] | |||
Administrative expenses | $ 174 | $ 206 | $ 198 |
Salaries and social security charges | |||
DisclosureOfAdministrativeExpensesLineItems [Line Items] | |||
Administrative expenses | 62 | 81 | 77 |
Benefits to the employees | |||
DisclosureOfAdministrativeExpensesLineItems [Line Items] | |||
Administrative expenses | 8 | 5 | 5 |
Accrual of defined benefit plans | |||
DisclosureOfAdministrativeExpensesLineItems [Line Items] | |||
Administrative expenses | 8 | 1 | 6 |
Work contracts, fees and compensation for services | |||
DisclosureOfAdministrativeExpensesLineItems [Line Items] | |||
Administrative expenses | 52 | 68 | 53 |
Compensation agreements | |||
DisclosureOfAdministrativeExpensesLineItems [Line Items] | |||
Administrative expenses | 0 | 3 | 20 |
Directors and Syndicates fees | |||
DisclosureOfAdministrativeExpensesLineItems [Line Items] | |||
Administrative expenses | 7 | 5 | 4 |
Depreciation of property, plant and equipment | |||
DisclosureOfAdministrativeExpensesLineItems [Line Items] | |||
Administrative expenses | 14 | 12 | 6 |
Consumption of materials | |||
DisclosureOfAdministrativeExpensesLineItems [Line Items] | |||
Administrative expenses | 3 | 4 | 3 |
Maintenance | |||
DisclosureOfAdministrativeExpensesLineItems [Line Items] | |||
Administrative expenses | 2 | 2 | 2 |
Transport and per diem | |||
DisclosureOfAdministrativeExpensesLineItems [Line Items] | |||
Administrative expenses | 2 | 2 | 2 |
Rental and insurance | |||
DisclosureOfAdministrativeExpensesLineItems [Line Items] | |||
Administrative expenses | 5 | 6 | 6 |
Surveillance and security | |||
DisclosureOfAdministrativeExpensesLineItems [Line Items] | |||
Administrative expenses | 2 | 5 | 4 |
Taxes, rates and contributions | |||
DisclosureOfAdministrativeExpensesLineItems [Line Items] | |||
Administrative expenses | 2 | 8 | 4 |
Communications | |||
DisclosureOfAdministrativeExpensesLineItems [Line Items] | |||
Administrative expenses | 2 | 2 | 2 |
Right-of-use assets amortization | |||
DisclosureOfAdministrativeExpensesLineItems [Line Items] | |||
Administrative expenses | 2 | 0 | 0 |
Institutional advertising and promotion | |||
DisclosureOfAdministrativeExpensesLineItems [Line Items] | |||
Administrative expenses | 0 | 1 | 2 |
Other | |||
DisclosureOfAdministrativeExpensesLineItems [Line Items] | |||
Administrative expenses | $ 3 | $ 1 | $ 2 |
10. OTHER ITEMS OF THE STATEM_5
10. OTHER ITEMS OF THE STATEMENT OF COMPREHENSIVE INCOME (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
DisclosureOfExplorationExpensesLineItems [Line Items] | |||
Exploration expenses | $ 9 | $ 1 | $ 2 |
Geological and geophysical expenses | |||
DisclosureOfExplorationExpensesLineItems [Line Items] | |||
Exploration expenses | 4 | 0 | 1 |
Decrease in unproductive wells | |||
DisclosureOfExplorationExpensesLineItems [Line Items] | |||
Exploration expenses | $ 5 | $ 1 | $ 1 |
10. OTHER ITEMS OF THE STATEM_6
10. OTHER ITEMS OF THE STATEMENT OF COMPREHENSIVE INCOME (Details 3) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
DisclosureOfOtherOperatingIncomeAndExpensesLineItems [Line Items] | |||
Other operating income | $ 40 | $ 181 | $ 149 |
Other operating expenses | (86) | (200) | (103) |
Provision for contingencies | |||
DisclosureOfOtherOperatingIncomeAndExpensesLineItems [Line Items] | |||
Other operating expenses | (28) | (35) | (20) |
Decrease in property, plant and equipment | |||
DisclosureOfOtherOperatingIncomeAndExpensesLineItems [Line Items] | |||
Other operating expenses | (1) | (6) | (1) |
Allowance for tax credits | |||
DisclosureOfOtherOperatingIncomeAndExpensesLineItems [Line Items] | |||
Other operating expenses | (4) | 0 | (1) |
Tax on bank transactions | |||
DisclosureOfOtherOperatingIncomeAndExpensesLineItems [Line Items] | |||
Other operating expenses | (29) | (30) | (27) |
Cost for services provided to third parties | |||
DisclosureOfOtherOperatingIncomeAndExpensesLineItems [Line Items] | |||
Other operating expenses | (2) | (2) | (2) |
Compensation agreements | |||
DisclosureOfOtherOperatingIncomeAndExpensesLineItems [Line Items] | |||
Other operating expenses | 0 | 0 | (2) |
Donations and contributions | |||
DisclosureOfOtherOperatingIncomeAndExpensesLineItems [Line Items] | |||
Other operating expenses | (2) | (2) | (2) |
Institutional promtion | |||
DisclosureOfOtherOperatingIncomeAndExpensesLineItems [Line Items] | |||
Other operating expenses | (2) | (3) | (3) |
Extraordinary Canon | |||
DisclosureOfOtherOperatingIncomeAndExpensesLineItems [Line Items] | |||
Other operating expenses | 0 | (3) | (14) |
Contingent consideration | |||
DisclosureOfOtherOperatingIncomeAndExpensesLineItems [Line Items] | |||
Other operating expenses | 0 | 0 | (8) |
Onerous contract (Ship or pay) | |||
DisclosureOfOtherOperatingIncomeAndExpensesLineItems [Line Items] | |||
Other operating expenses | 0 | (7) | (4) |
Tax contingencies in Ecuador | |||
DisclosureOfOtherOperatingIncomeAndExpensesLineItems [Line Items] | |||
Other operating expenses | 0 | (69) | 0 |
Other | |||
DisclosureOfOtherOperatingIncomeAndExpensesLineItems [Line Items] | |||
Other operating expenses | (18) | (43) | (19) |
Compensation for transaction agreement in Ecuador | |||
DisclosureOfOtherOperatingIncomeAndExpensesLineItems [Line Items] | |||
Other operating income | 0 | 99 | 0 |
Recovery of doubtful accounts | |||
DisclosureOfOtherOperatingIncomeAndExpensesLineItems [Line Items] | |||
Other operating income | 0 | 0 | 4 |
Insurance recovery | |||
DisclosureOfOtherOperatingIncomeAndExpensesLineItems [Line Items] | |||
Other operating income | 6 | 0 | 0 |
Surplus Gas Injection Compensation | |||
DisclosureOfOtherOperatingIncomeAndExpensesLineItems [Line Items] | |||
Other operating income | 0 | 23 | 101 |
Commissions on municipal tax collections | |||
DisclosureOfOtherOperatingIncomeAndExpensesLineItems [Line Items] | |||
Other operating income | 2 | 2 | 1 |
Services to third parties | |||
DisclosureOfOtherOperatingIncomeAndExpensesLineItems [Line Items] | |||
Other operating income | 13 | 13 | 8 |
Profit for property, plant and equipment sale | |||
DisclosureOfOtherOperatingIncomeAndExpensesLineItems [Line Items] | |||
Other operating income | 0 | 3 | 0 |
Dividends received | |||
DisclosureOfOtherOperatingIncomeAndExpensesLineItems [Line Items] | |||
Other operating income | 1 | 1 | 1 |
Reversal of contingencies and taxes payables | |||
DisclosureOfOtherOperatingIncomeAndExpensesLineItems [Line Items] | |||
Other operating income | 1 | 4 | 24 |
Other | |||
DisclosureOfOtherOperatingIncomeAndExpensesLineItems [Line Items] | |||
Other operating income | $ 17 | $ 36 | $ 10 |
10. OTHER ITEMS OF THE STATEM_7
10. OTHER ITEMS OF THE STATEMENT OF COMPREHENSIVE INCOME (Details 4) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
DisclosureOfFinancialResultsLineItems [Line Items] | |||
Gain on monetary position, net | $ 187 | $ 629 | $ 304 |
Financial income | 96 | 99 | 62 |
Financial costs | (299) | (316) | (232) |
Other financial results | 113 | (858) | (100) |
Total financial results, net | 97 | (446) | 34 |
Commercial interest | |||
DisclosureOfFinancialResultsLineItems [Line Items] | |||
Financial income | 61 | 58 | 43 |
Financial costs | (52) | (78) | (45) |
Financial interest | |||
DisclosureOfFinancialResultsLineItems [Line Items] | |||
Financial income | 22 | 34 | 14 |
Financial costs | (227) | (210) | (162) |
Other interest | |||
DisclosureOfFinancialResultsLineItems [Line Items] | |||
Financial income | 13 | 7 | 5 |
Financial costs | (10) | (15) | (10) |
Fiscal interest | |||
DisclosureOfFinancialResultsLineItems [Line Items] | |||
Financial costs | (6) | (8) | (11) |
Other financial expenses | |||
DisclosureOfFinancialResultsLineItems [Line Items] | |||
Financial costs | (4) | (5) | (4) |
Foreign currency exchange difference, net | |||
DisclosureOfFinancialResultsLineItems [Line Items] | |||
Other financial results | (75) | (863) | (156) |
Changes in the fair value of financial instruments | |||
DisclosureOfFinancialResultsLineItems [Line Items] | |||
Other financial results | 91 | 64 | 62 |
Gains (losses) from present value measurement | |||
DisclosureOfFinancialResultsLineItems [Line Items] | |||
Other financial results | 54 | (74) | (6) |
Other financial results of RDSA | |||
DisclosureOfFinancialResultsLineItems [Line Items] | |||
Other financial results | 2 | 13 | 0 |
Result from repurchase of Corporate Bonds | |||
DisclosureOfFinancialResultsLineItems [Line Items] | |||
Other financial results | 27 | 2 | 0 |
Other financial results | |||
DisclosureOfFinancialResultsLineItems [Line Items] | |||
Other financial results | $ 14 | $ 0 | $ 0 |
10. OTHER ITEMS OF THE STATEM_8
10. OTHER ITEMS OF THE STATEMENT OF COMPREHENSIVE INCOME (Details 5) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other Items Of Statement Of Comprehensive Income | |||
Current tax | $ 70 | $ 39 | $ 55 |
Deferred tax | (57) | (19) | (72) |
Other comprehensive income | 0 | 1 | 0 |
Difference in the estimate of previous fiscal year income tax and the income tax statement | 1 | (4) | (12) |
Direct changes for income tax | 0 | 0 | 3 |
Optional tax revaluation | 34 | 0 | 0 |
Income tax expense (benefit) | $ 48 | $ 17 | $ (26) |
10. OTHER ITEMS OF THE STATEM_9
10. OTHER ITEMS OF THE STATEMENT OF COMPREHENSIVE INCOME (Details 6) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other Items Of Statement Of Comprehensive Income | |||
Profit (loss) before income tax | $ 848 | $ 224 | $ 402 |
Current tax rate | 30.00% | 30.00% | 35.00% |
Result at the tax rate | $ 254 | $ 67 | $ 141 |
Share of profit of associates and joint ventures | (25) | (3) | (117) |
Non-taxable results | (38) | 7 | (59) |
Effects of exchange differences and traslation effect of property, plant and equipment and intangible assets, net | 93 | 0 | 0 |
Adjustment of valuation of property, plant and equipment and intangible assets | (202) | 0 | 0 |
Gain (loss) on monetary position | 17 | (38) | 66 |
Effect of tax rate change in deferred tax | 37 | (26) | (21) |
Adjustment effect for tax inflation | 129 | 0 | 0 |
Payment of optional tax revaluation | 34 | 0 | 0 |
Special tax, revaluation of property, plant and equipment | (169) | 0 | 0 |
Difference in the estimate of previous fiscal year income tax and the income tax statement | (86) | 4 | (20) |
Deferred tax not previously recognized | 0 | 4 | (31) |
Non-deductible costs | 0 | 0 | 9 |
Non-deductible provisions | 0 | 0 | 5 |
Other | 4 | 2 | 1 |
Income tax expense (benefit) | $ 48 | $ 17 | $ (26) |
10. OTHER ITEMS OF THE STATE_10
10. OTHER ITEMS OF THE STATEMENT OF COMPREHENSIVE INCOME (Details 7) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
DisclosureOfTaxLossCarryforwardsLineItems [Line Items] | ||
Recognized tax loss-carryforwards | $ 111 | $ 52 |
2020 | ||
DisclosureOfTaxLossCarryforwardsLineItems [Line Items] | ||
Recognized tax loss-carryforwards | 0 | 3 |
2021 | ||
DisclosureOfTaxLossCarryforwardsLineItems [Line Items] | ||
Recognized tax loss-carryforwards | 4 | 18 |
2022 | ||
DisclosureOfTaxLossCarryforwardsLineItems [Line Items] | ||
Recognized tax loss-carryforwards | 3 | 4 |
2023 | ||
DisclosureOfTaxLossCarryforwardsLineItems [Line Items] | ||
Recognized tax loss-carryforwards | 38 | 27 |
2024 | ||
DisclosureOfTaxLossCarryforwardsLineItems [Line Items] | ||
Recognized tax loss-carryforwards | $ 66 | $ 0 |
11. NON-FINANCIAL ASSETS AND _3
11. NON-FINANCIAL ASSETS AND LIABILITIES (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, beginning | $ 4,868 | $ 4,317 |
Increases | 591 | 665 |
Impairment | (112) | (56) |
Transfers | 0 | 0 |
Decreases | (40) | (58) |
Translation effect | (73) | 0 |
Property, plant and equipment, ending | 5,234 | $ 4,868 |
Land | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, beginning | 22 | |
Increases | 0 | |
Impairment | 0 | |
Transfers | 0 | |
Decreases | (8) | |
Translation effect | 0 | |
Property, plant and equipment, ending | 14 | |
Buildings | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, beginning | 207 | |
Increases | 1 | |
Impairment | (8) | |
Transfers | 4 | |
Decreases | (1) | |
Translation effect | (1) | |
Property, plant and equipment, ending | 202 | |
Equipment and machinery | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, beginning | 1,051 | |
Increases | 1 | |
Impairment | (90) | |
Transfers | 297 | |
Decreases | (5) | |
Translation effect | 0 | |
Property, plant and equipment, ending | 1,254 | |
High, medium and low voltage lines | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, beginning | 1,010 | |
Increases | 3 | |
Impairment | 0 | |
Transfers | 72 | |
Decreases | (4) | |
Translation effect | (32) | |
Property, plant and equipment, ending | 1,049 | |
Substations | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, beginning | 365 | |
Increases | 0 | |
Impairment | 0 | |
Transfers | 14 | |
Decreases | 0 | |
Translation effect | (12) | |
Property, plant and equipment, ending | 367 | |
Transforming chamber and platforms | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, beginning | 208 | |
Increases | 4 | |
Impairment | 0 | |
Transfers | 15 | |
Decreases | (1) | |
Translation effect | (7) | |
Property, plant and equipment, ending | 219 | |
Meters | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, beginning | 209 | |
Increases | 1 | |
Impairment | 0 | |
Transfers | 23 | |
Decreases | 0 | |
Translation effect | (7) | |
Property, plant and equipment, ending | 226 | |
Wells | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, beginning | 562 | |
Increases | 24 | |
Impairment | 0 | |
Transfers | 94 | |
Decreases | (8) | |
Translation effect | 0 | |
Property, plant and equipment, ending | 672 | |
Mining property | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, beginning | 267 | |
Increases | 0 | |
Impairment | (14) | |
Transfers | 0 | |
Decreases | 0 | |
Translation effect | 0 | |
Property, plant and equipment, ending | 253 | |
Vehicles | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, beginning | 22 | |
Increases | 1 | |
Impairment | 0 | |
Transfers | 0 | |
Decreases | 0 | |
Translation effect | (1) | |
Property, plant and equipment, ending | 22 | |
Furniture, fittings and communication equipment | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, beginning | 67 | |
Increases | 4 | |
Impairment | 0 | |
Transfers | 4 | |
Decreases | 0 | |
Translation effect | (1) | |
Property, plant and equipment, ending | 74 | |
Communication equipments | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, beginning | 15 | |
Increases | 0 | |
Impairment | 0 | |
Transfers | 0 | |
Decreases | 0 | |
Translation effect | 0 | |
Property, plant and equipment, ending | 15 | |
Materials and spare parts | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, beginning | 32 | |
Increases | 19 | |
Impairment | 0 | |
Transfers | (14) | |
Decreases | 0 | |
Translation effect | 0 | |
Property, plant and equipment, ending | 37 | |
Distribution storage center | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, beginning | 10 | |
Increases | 0 | |
Impairment | 0 | |
Transfers | 0 | |
Decreases | (10) | |
Translation effect | 0 | |
Property, plant and equipment, ending | 0 | |
Petrochemical Industrial Complex | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, beginning | 15 | |
Increases | 0 | |
Impairment | 0 | |
Transfers | (1) | |
Decreases | 0 | |
Translation effect | 0 | |
Property, plant and equipment, ending | 14 | |
Work in progress | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, beginning | 783 | |
Increases | 510 | |
Impairment | 0 | |
Transfers | (487) | |
Decreases | (3) | |
Translation effect | (11) | |
Property, plant and equipment, ending | 792 | |
Advances to suppliers | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, beginning | 19 | |
Increases | 23 | |
Impairment | 0 | |
Transfers | (23) | |
Decreases | 0 | |
Translation effect | (1) | |
Property, plant and equipment, ending | 18 | |
Other goods | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, beginning | 4 | |
Increases | 0 | |
Impairment | 0 | |
Transfers | 2 | |
Decreases | 0 | |
Translation effect | 0 | |
Property, plant and equipment, ending | $ 6 |
11. NON-FINANCIAL ASSETS AND _4
11. NON-FINANCIAL ASSETS AND LIABILITIES (Details 1) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment depreciation, beginning | $ (1,552) | $ (1,358) |
Decreases | 12 | 9 |
Impairment | 50 | 24 |
Depreciation for the year | (255) | (227) |
Translation effect | 18 | 0 |
Property, plant and equipment depreciation, ending | (1,727) | (1,552) |
Net book value | 3,507 | 3,316 |
Land | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment depreciation, beginning | 0 | |
Decreases | 0 | |
Impairment | 0 | |
Depreciation for the year | 0 | |
Translation effect | 0 | |
Property, plant and equipment depreciation, ending | 0 | 0 |
Net book value | 14 | 22 |
Buildings | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment depreciation, beginning | (74) | |
Decreases | 1 | |
Impairment | 5 | |
Depreciation for the year | (7) | |
Translation effect | 0 | |
Property, plant and equipment depreciation, ending | (75) | (74) |
Net book value | 127 | 133 |
Equipment and machinery | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment depreciation, beginning | (384) | |
Decreases | 4 | |
Impairment | 41 | |
Depreciation for the year | (72) | |
Translation effect | 0 | |
Property, plant and equipment depreciation, ending | (411) | (384) |
Net book value | 843 | 667 |
High, medium and low voltage lines | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment depreciation, beginning | (323) | |
Decreases | 4 | |
Impairment | 0 | |
Depreciation for the year | (35) | |
Translation effect | 10 | |
Property, plant and equipment depreciation, ending | (344) | (323) |
Net book value | 705 | 687 |
Substations | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment depreciation, beginning | (105) | |
Decreases | 0 | |
Impairment | 0 | |
Depreciation for the year | (13) | |
Translation effect | 3 | |
Property, plant and equipment depreciation, ending | (115) | (105) |
Net book value | 252 | 260 |
Transforming chamber and platforms | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment depreciation, beginning | (57) | |
Decreases | 0 | |
Impairment | 0 | |
Depreciation for the year | (8) | |
Translation effect | 2 | |
Property, plant and equipment depreciation, ending | (63) | (57) |
Net book value | 156 | 151 |
Meters | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment depreciation, beginning | (80) | |
Decreases | 0 | |
Impairment | 0 | |
Depreciation for the year | (10) | |
Translation effect | 3 | |
Property, plant and equipment depreciation, ending | (87) | (80) |
Net book value | 139 | 129 |
Wells | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment depreciation, beginning | (321) | |
Decreases | 0 | |
Impairment | 0 | |
Depreciation for the year | (65) | |
Translation effect | 0 | |
Property, plant and equipment depreciation, ending | (386) | (321) |
Net book value | 286 | 241 |
Mining property | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment depreciation, beginning | (119) | |
Decreases | 0 | |
Impairment | 4 | |
Depreciation for the year | (29) | |
Translation effect | 0 | |
Property, plant and equipment depreciation, ending | (144) | (119) |
Net book value | 109 | 148 |
Vehicles | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment depreciation, beginning | (16) | |
Decreases | 0 | |
Impairment | 0 | |
Depreciation for the year | (5) | |
Translation effect | 0 | |
Property, plant and equipment depreciation, ending | (21) | (16) |
Net book value | 1 | 6 |
Furniture, fittings and communication equipment | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment depreciation, beginning | (48) | |
Decreases | 0 | |
Impairment | 0 | |
Depreciation for the year | (9) | |
Translation effect | 0 | |
Property, plant and equipment depreciation, ending | (57) | (48) |
Net book value | 17 | 19 |
Communication equipments | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment depreciation, beginning | (10) | |
Decreases | 0 | |
Impairment | 0 | |
Depreciation for the year | 0 | |
Translation effect | 0 | |
Property, plant and equipment depreciation, ending | (10) | (10) |
Net book value | 5 | 5 |
Materials and spare parts | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment depreciation, beginning | (2) | |
Decreases | 0 | |
Impairment | 0 | |
Depreciation for the year | (1) | |
Translation effect | 0 | |
Property, plant and equipment depreciation, ending | (3) | (2) |
Net book value | 34 | 30 |
Distribution storage center | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment depreciation, beginning | (2) | |
Decreases | 3 | |
Impairment | 0 | |
Depreciation for the year | 0 | |
Translation effect | 0 | |
Property, plant and equipment depreciation, ending | 1 | (2) |
Net book value | 1 | 8 |
Petrochemical Industrial Complex | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment depreciation, beginning | (7) | |
Decreases | 0 | |
Impairment | 0 | |
Depreciation for the year | (1) | |
Translation effect | 0 | |
Property, plant and equipment depreciation, ending | (8) | (7) |
Net book value | 6 | 8 |
Work in progress | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment depreciation, beginning | 0 | |
Decreases | 0 | |
Impairment | 0 | |
Depreciation for the year | 0 | |
Translation effect | 0 | |
Property, plant and equipment depreciation, ending | 0 | 0 |
Net book value | 792 | 783 |
Advances to suppliers | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment depreciation, beginning | 0 | |
Decreases | 0 | |
Impairment | 0 | |
Depreciation for the year | 0 | |
Translation effect | 0 | |
Property, plant and equipment depreciation, ending | 0 | 0 |
Net book value | 18 | 19 |
Other goods | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment depreciation, beginning | (4) | |
Decreases | 0 | |
Impairment | 0 | |
Depreciation for the year | 0 | |
Translation effect | 0 | |
Property, plant and equipment depreciation, ending | (4) | (4) |
Net book value | $ 2 | $ 0 |
11. NON-FINANCIAL ASSETS AND _5
11. NON-FINANCIAL ASSETS AND LIABILITIES (Details 2) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets, beginning | $ 314 | $ 314 |
Translation effect | (2) | 0 |
Intangible assets, ending | 312 | 314 |
Concession agreements | ||
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets, beginning | 272 | |
Translation effect | (2) | |
Intangible assets, ending | 270 | 272 |
Goodwill | ||
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets, beginning | 35 | |
Translation effect | 0 | |
Intangible assets, ending | 35 | 35 |
Intangibles identified in acquisitions of companies | ||
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets, beginning | 7 | |
Translation effect | 0 | |
Intangible assets, ending | $ 7 | $ 7 |
11. NON-FINANCIAL ASSETS AND _6
11. NON-FINANCIAL ASSETS AND LIABILITIES (Details 3) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets amortization, beginning | $ (153) | $ (146) |
Amortization for the year | (8) | (7) |
Intangible assets amortization, ending | (161) | (153) |
Concession agreements | ||
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets amortization, beginning | (151) | |
Amortization for the year | (8) | |
Intangible assets amortization, ending | (159) | (151) |
Intangibles identified in acquisitions of companies | ||
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets amortization, beginning | (2) | |
Amortization for the year | 0 | |
Intangible assets amortization, ending | $ (2) | $ (2) |
11. NON-FINANCIAL ASSETS AND _7
11. NON-FINANCIAL ASSETS AND LIABILITIES (Details 4) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets | $ 151 | $ 161 |
Concession agreements | ||
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets | 111 | 121 |
Goodwill | ||
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets | 35 | 35 |
Intangibles identified in acquisitions of companies | ||
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets | $ 5 | $ 5 |
11. NON-FINANCIAL ASSETS AND _8
11. NON-FINANCIAL ASSETS AND LIABILITIES (Details 5) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Property, plant and equipment | ||
DisclosureOfDeferredTaxAssetsAndLiabilitiesLineItems [Line Items] | ||
Deferred tax liability, beginning | $ (334) | $ (443) |
Profit (loss) | (55) | 108 |
Gain on monetary position, net | 5 | |
Other comprehensive income (loss) | 0 | |
Deferred tax liability, ending | (384) | (334) |
Adjustment for tax inflation | ||
DisclosureOfDeferredTaxAssetsAndLiabilitiesLineItems [Line Items] | ||
Deferred tax liability, beginning | 0 | |
Profit (loss) | (99) | |
Gain on monetary position, net | 0 | |
Deferred tax liability, ending | (99) | 0 |
Investments in joint ventures and associates | ||
DisclosureOfDeferredTaxAssetsAndLiabilitiesLineItems [Line Items] | ||
Deferred tax liability, beginning | (19) | (52) |
Profit (loss) | 11 | 35 |
Gain on monetary position, net | 0 | |
Other comprehensive income (loss) | (2) | |
Deferred tax liability, ending | (8) | (19) |
Intangible assets | ||
DisclosureOfDeferredTaxAssetsAndLiabilitiesLineItems [Line Items] | ||
Deferred tax liability, beginning | (193) | (2) |
Profit (loss) | 175 | (190) |
Gain on monetary position, net | 5 | |
Other comprehensive income (loss) | 0 | |
Deferred tax liability, ending | (13) | (193) |
Inventories | ||
DisclosureOfDeferredTaxAssetsAndLiabilitiesLineItems [Line Items] | ||
Deferred tax liability, beginning | 0 | |
Profit (loss) | (10) | |
Gain on monetary position, net | 0 | |
Deferred tax liability, ending | (10) | 0 |
Trade and other receivables | ||
DisclosureOfDeferredTaxAssetsAndLiabilitiesLineItems [Line Items] | ||
Deferred tax liability, beginning | (9) | (27) |
Profit (loss) | 5 | 17 |
Gain on monetary position, net | 0 | |
Other comprehensive income (loss) | 0 | |
Deferred tax liability, ending | (4) | (9) |
Financial assets at fair value through profit and loss | ||
DisclosureOfDeferredTaxAssetsAndLiabilitiesLineItems [Line Items] | ||
Deferred tax liability, beginning | (9) | (3) |
Profit (loss) | (2) | (6) |
Gain on monetary position, net | 0 | |
Other comprehensive income (loss) | 0 | |
Deferred tax liability, ending | (11) | (9) |
Cash and cash equivalents | ||
DisclosureOfDeferredTaxAssetsAndLiabilitiesLineItems [Line Items] | ||
Deferred tax liability, beginning | 0 | |
Profit (loss) | 0 | |
Gain on monetary position, net | 0 | |
Deferred tax liability, ending | 0 | 0 |
Borrowings | ||
DisclosureOfDeferredTaxAssetsAndLiabilitiesLineItems [Line Items] | ||
Deferred tax liability, beginning | (3) | (5) |
Profit (loss) | 3 | 2 |
Gain on monetary position, net | 0 | |
Other comprehensive income (loss) | 0 | |
Deferred tax liability, ending | 0 | (3) |
Taxes payable | ||
DisclosureOfDeferredTaxAssetsAndLiabilitiesLineItems [Line Items] | ||
Deferred tax liability, beginning | 0 | |
Profit (loss) | (4) | |
Gain on monetary position, net | 0 | |
Deferred tax liability, ending | (4) | 0 |
Other | ||
DisclosureOfDeferredTaxAssetsAndLiabilitiesLineItems [Line Items] | ||
Deferred tax liability, beginning | (6) | (4) |
Profit (loss) | 6 | (1) |
Gain on monetary position, net | 0 | |
Other comprehensive income (loss) | 0 | |
Deferred tax liability, ending | 0 | (6) |
Deferred tax liabilities | ||
DisclosureOfDeferredTaxAssetsAndLiabilitiesLineItems [Line Items] | ||
Deferred tax liability, beginning | (573) | (569) |
Profit (loss) | 30 | (2) |
Gain on monetary position, net | 10 | |
Other comprehensive income (loss) | (2) | |
Deferred tax liability, ending | (533) | (573) |
Assets classified as held for sale | ||
DisclosureOfDeferredTaxAssetsAndLiabilitiesLineItems [Line Items] | ||
Deferred tax liability, beginning | 0 | (33) |
Profit (loss) | 33 | |
Other comprehensive income (loss) | 0 | |
Deferred tax liability, ending | 0 | |
Tax loss-carryforwards | ||
DisclosureOfDeferredTaxAssetsAndLiabilitiesLineItems [Line Items] | ||
Deferred tax asset, beginning | 52 | 64 |
Profit (loss) | 59 | (12) |
Gain on monetary position, net | 0 | |
Other comprehensive income (loss) | 0 | |
Deferred tax asset, ending | 111 | 52 |
Trade and other receivables | ||
DisclosureOfDeferredTaxAssetsAndLiabilitiesLineItems [Line Items] | ||
Deferred tax asset, beginning | 14 | 4 |
Profit (loss) | (1) | 10 |
Gain on monetary position, net | 0 | |
Other comprehensive income (loss) | 0 | |
Deferred tax asset, ending | 13 | 14 |
Trade and other payables | ||
DisclosureOfDeferredTaxAssetsAndLiabilitiesLineItems [Line Items] | ||
Deferred tax asset, beginning | 52 | 46 |
Profit (loss) | (37) | 6 |
Gain on monetary position, net | (2) | |
Other comprehensive income (loss) | 0 | |
Deferred tax asset, ending | 13 | 52 |
Salaries and social security payable | ||
DisclosureOfDeferredTaxAssetsAndLiabilitiesLineItems [Line Items] | ||
Deferred tax asset, beginning | 1 | 0 |
Profit (loss) | 1 | 1 |
Gain on monetary position, net | 0 | |
Other comprehensive income (loss) | 0 | |
Deferred tax asset, ending | 2 | 1 |
Defined benefit plans | ||
DisclosureOfDeferredTaxAssetsAndLiabilitiesLineItems [Line Items] | ||
Deferred tax asset, beginning | 9 | 11 |
Profit (loss) | (2) | (3) |
Gain on monetary position, net | 0 | |
Other comprehensive income (loss) | 1 | |
Deferred tax asset, ending | 7 | 9 |
Provisions | ||
DisclosureOfDeferredTaxAssetsAndLiabilitiesLineItems [Line Items] | ||
Deferred tax asset, beginning | 32 | 29 |
Profit (loss) | 7 | 3 |
Gain on monetary position, net | 0 | |
Other comprehensive income (loss) | 0 | |
Deferred tax asset, ending | 39 | 32 |
Taxes payable | ||
DisclosureOfDeferredTaxAssetsAndLiabilitiesLineItems [Line Items] | ||
Deferred tax asset, beginning | 6 | 7 |
Profit (loss) | (6) | (1) |
Gain on monetary position, net | 0 | |
Other comprehensive income (loss) | 0 | |
Deferred tax asset, ending | 0 | 6 |
Adjustment for tax inflation | ||
DisclosureOfDeferredTaxAssetsAndLiabilitiesLineItems [Line Items] | ||
Deferred tax asset, beginning | 0 | |
Profit (loss) | 8 | |
Gain on monetary position, net | 0 | |
Deferred tax asset, ending | 8 | 0 |
Other | ||
DisclosureOfDeferredTaxAssetsAndLiabilitiesLineItems [Line Items] | ||
Deferred tax asset, beginning | 2 | 2 |
Profit (loss) | (2) | 0 |
Gain on monetary position, net | 0 | |
Other comprehensive income (loss) | 0 | |
Deferred tax asset, ending | 0 | 2 |
Deferred tax asset | ||
DisclosureOfDeferredTaxAssetsAndLiabilitiesLineItems [Line Items] | ||
Deferred tax asset, beginning | 168 | 177 |
Profit (loss) | 27 | (10) |
Gain on monetary position, net | (2) | |
Other comprehensive income (loss) | 1 | |
Deferred tax asset, ending | 193 | 168 |
Derivative financial instruments | ||
DisclosureOfDeferredTaxAssetsAndLiabilitiesLineItems [Line Items] | ||
Deferred tax asset, beginning | 0 | 0 |
Profit (loss) | 0 | |
Other comprehensive income (loss) | 0 | |
Deferred tax asset, ending | 0 | |
Financial assets at fair value through profit and loss | ||
DisclosureOfDeferredTaxAssetsAndLiabilitiesLineItems [Line Items] | ||
Deferred tax asset, beginning | 0 | 0 |
Profit (loss) | 0 | |
Other comprehensive income (loss) | 0 | |
Deferred tax asset, ending | 0 | |
Liabilities associated to assets classified as held for sale | ||
DisclosureOfDeferredTaxAssetsAndLiabilitiesLineItems [Line Items] | ||
Deferred tax asset, beginning | $ 0 | 14 |
Profit (loss) | (14) | |
Other comprehensive income (loss) | 0 | |
Deferred tax asset, ending | $ 0 |
11. NON-FINANCIAL ASSETS AND _9
11. NON-FINANCIAL ASSETS AND LIABILITIES (Details 6) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Non-financial Assets And Liabilities | ||
Deferred tax asset | $ 28 | $ 2 |
Deferred tax liabilities | (368) | (407) |
Deferred tax liabilities, net | $ (340) | $ (405) |
11. NON-FINANCIAL ASSETS AND_10
11. NON-FINANCIAL ASSETS AND LIABILITIES (Details 7) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
DisclosureOfInventoryLineItems [Line Items] | ||||
Inventories | $ 153 | $ 137 | $ 113 | $ 164 |
Materials and spare parts | ||||
DisclosureOfInventoryLineItems [Line Items] | ||||
Inventories | 95 | 94 | ||
Advances to suppliers | ||||
DisclosureOfInventoryLineItems [Line Items] | ||||
Inventories | 21 | 2 | ||
In process and finished products | ||||
DisclosureOfInventoryLineItems [Line Items] | ||||
Inventories | 37 | 40 | ||
Stock of crude oil | ||||
DisclosureOfInventoryLineItems [Line Items] | ||||
Inventories | $ 0 | $ 1 |
11. NON-FINANCIAL ASSETS AND_11
11. NON-FINANCIAL ASSETS AND LIABILITIES (Details 8) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
DisclosureOfProvisionsLineItems [Line Items] | ||
Provisions, non current | $ 145 | $ 146 |
Provisions, current | 20 | 23 |
Provisions for contingencies | ||
DisclosureOfProvisionsLineItems [Line Items] | ||
Provisions, non current | 123 | 125 |
Provisions, current | 16 | 17 |
Asset retirement obligation and dismantling of wind turbines | ||
DisclosureOfProvisionsLineItems [Line Items] | ||
Provisions, non current | 20 | 20 |
Provisions, current | 2 | 2 |
Environmental remediation | ||
DisclosureOfProvisionsLineItems [Line Items] | ||
Provisions, non current | 1 | 1 |
Provisions, current | 2 | 4 |
Other provisions | ||
DisclosureOfProvisionsLineItems [Line Items] | ||
Provisions, non current | 1 | 0 |
Provisions, current | $ 0 | $ 0 |
11. NON-FINANCIAL ASSETS AND_12
11. NON-FINANCIAL ASSETS AND LIABILITIES (Details 9) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Provisions for contingencies | |||
DisclosureOfProvisionsLineItems [Line Items] | |||
Provisions, beginning | $ 142 | $ 141 | $ 199 |
Increases | 41 | 106 | 43 |
Reclassification | 0 | (9) | |
Decreases | (10) | (23) | (39) |
Exchange differences on translation | (4) | ||
Gain on net monetary position, net | (17) | (52) | (37) |
Reclassification to liabilities associated with assets classified as held for sale | 0 | ||
Reversal of unused amounts | (13) | (30) | (16) |
Provisions, ending | 139 | 142 | 141 |
Asset retirement obligation and dismantling of wind turbines | |||
DisclosureOfProvisionsLineItems [Line Items] | |||
Provisions, beginning | 22 | 42 | 91 |
Increases | 3 | 37 | 29 |
Reclassification | (18) | (1) | |
Decreases | 0 | (5) | (7) |
Exchange differences on translation | 0 | ||
Gain on net monetary position, net | 0 | (18) | (18) |
Reclassification to liabilities associated with assets classified as held for sale | (34) | ||
Reversal of unused amounts | (3) | (16) | (18) |
Provisions, ending | 22 | 22 | 42 |
Environmental remediation | |||
DisclosureOfProvisionsLineItems [Line Items] | |||
Provisions, beginning | 5 | 6 | 17 |
Increases | 0 | 6 | 4 |
Reclassification | 0 | 1 | |
Decreases | (2) | (5) | (6) |
Exchange differences on translation | 0 | ||
Gain on net monetary position, net | 0 | (2) | (3) |
Reclassification to liabilities associated with assets classified as held for sale | (7) | ||
Reversal of unused amounts | 0 | 0 | 0 |
Provisions, ending | $ 3 | $ 5 | $ 6 |
11. NON-FINANCIAL ASSETS AND_13
11. NON-FINANCIAL ASSETS AND LIABILITIES (Details 10) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
DisclosureOfIncomeTaxAndMinimumNotionalIncomeTaxLiabilityLineItems [Line Items] | ||
Non current income tax and minimum notional income tax provision | $ 10 | $ 27 |
Current income tax and minimum notional income tax provision | 53 | 29 |
Income tax, net of witholdings and advances | ||
DisclosureOfIncomeTaxAndMinimumNotionalIncomeTaxLiabilityLineItems [Line Items] | ||
Non current income tax and minimum notional income tax provision | 10 | 27 |
Current income tax and minimum notional income tax provision | $ 53 | 25 |
Minimum notional income tax, net of witholdings and advances | ||
DisclosureOfIncomeTaxAndMinimumNotionalIncomeTaxLiabilityLineItems [Line Items] | ||
Current income tax and minimum notional income tax provision | $ 4 |
11. NON-FINANCIAL ASSETS AND_14
11. NON-FINANCIAL ASSETS AND LIABILITIES (Details 11) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
DisclosureOfTaxLiabilitiesLineItems [Line Items] | ||
Taxes payables, non current | $ 4 | $ 14 |
Taxes payables, current | 72 | 54 |
Value added tax | ||
DisclosureOfTaxLiabilitiesLineItems [Line Items] | ||
Taxes payables, non current | 0 | 4 |
Taxes payables, current | 38 | 21 |
Sales tax | ||
DisclosureOfTaxLiabilitiesLineItems [Line Items] | ||
Taxes payables, non current | 1 | 1 |
Municipal, provincial and national contributions | ||
DisclosureOfTaxLiabilitiesLineItems [Line Items] | ||
Taxes payables, current | 3 | 3 |
Personal assets tax provision | ||
DisclosureOfTaxLiabilitiesLineItems [Line Items] | ||
Taxes payables, current | 3 | 0 |
Payment plans | ||
DisclosureOfTaxLiabilitiesLineItems [Line Items] | ||
Taxes payables, non current | 0 | 2 |
Taxes payables, current | 1 | 1 |
Municipal taxes | ||
DisclosureOfTaxLiabilitiesLineItems [Line Items] | ||
Taxes payables, current | 2 | 3 |
Tax withholdings to be deposited | ||
DisclosureOfTaxLiabilitiesLineItems [Line Items] | ||
Taxes payables, current | 6 | 9 |
Royalties | ||
DisclosureOfTaxLiabilitiesLineItems [Line Items] | ||
Taxes payables, current | 4 | 5 |
Extraordinary Canon | ||
DisclosureOfTaxLiabilitiesLineItems [Line Items] | ||
Taxes payables, non current | 3 | 7 |
Taxes payables, current | 12 | 10 |
Other | ||
DisclosureOfTaxLiabilitiesLineItems [Line Items] | ||
Taxes payables, current | $ 3 | $ 2 |
11. NON-FINANCIAL ASSETS AND_15
11. NON-FINANCIAL ASSETS AND LIABILITIES (Details 12) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of net defined benefit liability (asset) [line items] | |||
Liabilities, beginning | $ 35 | $ 44 | $ 50 |
Items classified in profit or loss | |||
Current services cost | 3 | 2 | 3 |
Cost for interest | 13 | 8 | 11 |
Past services cost | (5) | 1 | |
Items classified in other comprehensive income | |||
Actuarial (gains) losses | (2) | 4 | (1) |
Exchange differences on translation | 0 | ||
Benefit payments | (2) | (3) | (2) |
Reclassification to liabilities associated to assets classified as held for sale | (7) | ||
(Gain) loss on net monetary position | (16) | (11) | |
Increase for subsidiaries acquisition | (15) | ||
Liabilities, ending | 31 | 35 | 44 |
Present value of the obligation | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Liabilities, beginning | 40 | 47 | 58 |
Items classified in profit or loss | |||
Current services cost | 3 | 2 | 3 |
Cost for interest | 15 | 9 | 12 |
Past services cost | (5) | 1 | |
Items classified in other comprehensive income | |||
Actuarial (gains) losses | (2) | 6 | (1) |
Exchange differences on translation | 1 | ||
Benefit payments | (2) | (3) | (2) |
Reclassification to liabilities associated to assets classified as held for sale | (11) | ||
(Gain) loss on net monetary position | (18) | (14) | |
Increase for subsidiaries acquisition | (16) | ||
Liabilities, ending | 36 | 40 | 47 |
Present value of assets | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Liabilities, beginning | (5) | (3) | (8) |
Items classified in profit or loss | |||
Current services cost | 0 | 0 | 0 |
Cost for interest | (2) | (1) | (1) |
Past services cost | 0 | 0 | |
Items classified in other comprehensive income | |||
Actuarial (gains) losses | 0 | (2) | 0 |
Exchange differences on translation | (1) | ||
Benefit payments | 0 | 0 | 0 |
Reclassification to liabilities associated to assets classified as held for sale | 4 | ||
(Gain) loss on net monetary position | 2 | 3 | |
Increase for subsidiaries acquisition | 1 | ||
Liabilities, ending | $ (5) | $ (5) | $ (3) |
11. NON-FINANCIAL ASSETS AND_16
11. NON-FINANCIAL ASSETS AND LIABILITIES (Details 13) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Less than one year | |
Disclosure of defined benefit plans [line items] | |
Estimated expected benefits payment | $ 4 |
One to two years | |
Disclosure of defined benefit plans [line items] | |
Estimated expected benefits payment | 3 |
Two to three years | |
Disclosure of defined benefit plans [line items] | |
Estimated expected benefits payment | 2 |
Three to four years | |
Disclosure of defined benefit plans [line items] | |
Estimated expected benefits payment | 2 |
Four to five years | |
Disclosure of defined benefit plans [line items] | |
Estimated expected benefits payment | 2 |
Six to ten years | |
Disclosure of defined benefit plans [line items] | |
Estimated expected benefits payment | $ 11 |
11. NON-FINANCIAL ASSETS AND_17
11. NON-FINANCIAL ASSETS AND LIABILITIES (Details 14) | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Non-financial Assets And Liabilities | |||
Discount rate | 5.00% | 5.00% | 5.00% |
Salaries increase | 1.00% | 1.00% | 1.00% |
Average inflation | 50.00% | 27.00% | 21.00% |
11. NON-FINANCIAL ASSETS AND_18
11. NON-FINANCIAL ASSETS AND LIABILITIES (Details 15) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Discount rate: 4% | |
Disclosure of defined benefit plans [line items] | |
Obligation | $ 39 |
Variation | $ 3 |
Percentage of variation | 10.00% |
Discount rate: 6% | |
Disclosure of defined benefit plans [line items] | |
Obligation | $ 33 |
Variation | $ (3) |
Percentage of variation | (9.00%) |
Salaries increase: 0% | |
Disclosure of defined benefit plans [line items] | |
Obligation | $ 34 |
Variation | $ (2) |
Percentage of variation | (5.00%) |
Salaries increase: 2% | |
Disclosure of defined benefit plans [line items] | |
Obligation | $ 38 |
Variation | $ 2 |
Percentage of variation | 6.00% |
11. NON-FINANCIAL ASSETS AND_19
11. NON-FINANCIAL ASSETS AND LIABILITIES (Details 16) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
DisclosureOfSalariesAndSocialSecurityPayableLineItems [Line Items] | ||
Non current salaries and social security payable | $ 4 | $ 4 |
Current salaries and social security payable | 65 | 72 |
Seniority - based bonus | ||
DisclosureOfSalariesAndSocialSecurityPayableLineItems [Line Items] | ||
Non current salaries and social security payable | 3 | 4 |
Early retirements payable | ||
DisclosureOfSalariesAndSocialSecurityPayableLineItems [Line Items] | ||
Non current salaries and social security payable | 1 | 0 |
Salaries and social security contributions | ||
DisclosureOfSalariesAndSocialSecurityPayableLineItems [Line Items] | ||
Current salaries and social security payable | 22 | 24 |
Provision for vacations | ||
DisclosureOfSalariesAndSocialSecurityPayableLineItems [Line Items] | ||
Current salaries and social security payable | 17 | 19 |
Provision for gratifications and annual bonus for efficiency | ||
DisclosureOfSalariesAndSocialSecurityPayableLineItems [Line Items] | ||
Current salaries and social security payable | $ 26 | $ 29 |
12. FINANCIAL ASSETS AND LIAB_3
12. FINANCIAL ASSETS AND LIABILITIES (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
DisclosureOfFinancialAssetsAtAmotizedCostLineItems [Line Items] | ||
Non current financial assets at amortized cost | $ 18 | $ 0 |
Current financial assets at amortized cost | 54 | 35 |
Time deposits | ||
DisclosureOfFinancialAssetsAtAmotizedCostLineItems [Line Items] | ||
Current financial assets at amortized cost | 0 | 35 |
Public securities | ||
DisclosureOfFinancialAssetsAtAmotizedCostLineItems [Line Items] | ||
Non current financial assets at amortized cost | 18 | 0 |
Current financial assets at amortized cost | $ 54 | $ 0 |
12. FINANCIAL ASSETS AND LIAB_4
12. FINANCIAL ASSETS AND LIABILITIES (Details 1) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
DisclosureOfFinancialAssetsatFairValueThrougProfitorLossLineItems [Line Items] | ||
Non current financial assets at fair value through profit and loss | $ 11 | $ 11 |
Current financial assets at fair value through profit and loss | 365 | 405 |
Government securities | ||
DisclosureOfFinancialAssetsatFairValueThrougProfitorLossLineItems [Line Items] | ||
Current financial assets at fair value through profit and loss | 113 | 298 |
Shares | ||
DisclosureOfFinancialAssetsatFairValueThrougProfitorLossLineItems [Line Items] | ||
Non current financial assets at fair value through profit and loss | 11 | 11 |
Current financial assets at fair value through profit and loss | 8 | 1 |
Investment funds | ||
DisclosureOfFinancialAssetsatFairValueThrougProfitorLossLineItems [Line Items] | ||
Current financial assets at fair value through profit and loss | $ 244 | $ 106 |
12. FINANCIAL ASSETS AND LIAB_5
12. FINANCIAL ASSETS AND LIABILITIES (Details 2) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
DisclosureOfTradeAndOtherReceivablesLineItems [Line Items] | ||
Non current trade receivables | $ 8 | $ 93 |
Non current other receivables | 71 | 160 |
Non current trade and other receivables | 79 | 253 |
Current trade receivables | 500 | 527 |
Current other receivables | 61 | 176 |
Current trade and other receivables | 561 | 703 |
CAMMESA Receivable | ||
DisclosureOfTradeAndOtherReceivablesLineItems [Line Items] | ||
Non current trade receivables | 0 | 70 |
Current trade receivables | 0 | 15 |
Other | ||
DisclosureOfTradeAndOtherReceivablesLineItems [Line Items] | ||
Non current trade receivables | 8 | 23 |
Non current other receivables | 14 | 2 |
Current trade receivables | 10 | 4 |
Current other receivables | 14 | 6 |
Tax credits | ||
DisclosureOfTradeAndOtherReceivablesLineItems [Line Items] | ||
Non current other receivables | 3 | 13 |
Current other receivables | 10 | 27 |
Related parties | ||
DisclosureOfTradeAndOtherReceivablesLineItems [Line Items] | ||
Non current other receivables | 53 | 49 |
Current trade receivables | 6 | 10 |
Current other receivables | 8 | 5 |
Prepaid expenses | ||
DisclosureOfTradeAndOtherReceivablesLineItems [Line Items] | ||
Non current other receivables | 1 | 1 |
Current other receivables | 2 | 2 |
Financial credit | ||
DisclosureOfTradeAndOtherReceivablesLineItems [Line Items] | ||
Non current other receivables | 0 | 1 |
Current other receivables | 5 | 6 |
Guarantee deposits | ||
DisclosureOfTradeAndOtherReceivablesLineItems [Line Items] | ||
Current other receivables | 5 | 13 |
Receivable for sale of property, plant and equipment | ||
DisclosureOfTradeAndOtherReceivablesLineItems [Line Items] | ||
Non current other receivables | 0 | 3 |
Current other receivables | 1 | 21 |
Natural Gas Surplus Injection Promotion Program | ||
DisclosureOfTradeAndOtherReceivablesLineItems [Line Items] | ||
Non current other receivables | 0 | 71 |
Current other receivables | 0 | 71 |
Credit with RDSA | ||
DisclosureOfTradeAndOtherReceivablesLineItems [Line Items] | ||
Non current other receivables | 35 | 20 |
Current other receivables | 1 | 0 |
Receivables from energy distribution | ||
DisclosureOfTradeAndOtherReceivablesLineItems [Line Items] | ||
Current trade receivables | 226 | 223 |
Receivables from MAT | ||
DisclosureOfTradeAndOtherReceivablesLineItems [Line Items] | ||
Current trade receivables | 17 | 27 |
CAMMESA | ||
DisclosureOfTradeAndOtherReceivablesLineItems [Line Items] | ||
Current trade receivables | 168 | 131 |
Receivables from oil and gas sales | ||
DisclosureOfTradeAndOtherReceivablesLineItems [Line Items] | ||
Current trade receivables | 48 | 78 |
Receivables from refinery and distribution | ||
DisclosureOfTradeAndOtherReceivablesLineItems [Line Items] | ||
Current trade receivables | 0 | 6 |
Receivables from petrochemistry | ||
DisclosureOfTradeAndOtherReceivablesLineItems [Line Items] | ||
Current trade receivables | 54 | 67 |
Government of the PBA and CABA by Social Rate | ||
DisclosureOfTradeAndOtherReceivablesLineItems [Line Items] | ||
Current trade receivables | 4 | 0 |
Allowance for doubtful accounts | ||
DisclosureOfTradeAndOtherReceivablesLineItems [Line Items] | ||
Non current other receivables | (35) | 0 |
Current trade receivables | (33) | (34) |
Advances to suppliers | ||
DisclosureOfTradeAndOtherReceivablesLineItems [Line Items] | ||
Current other receivables | 0 | 2 |
Receivables for non-electrical activities | ||
DisclosureOfTradeAndOtherReceivablesLineItems [Line Items] | ||
Current other receivables | 11 | 14 |
Insurance to recover | ||
DisclosureOfTradeAndOtherReceivablesLineItems [Line Items] | ||
Current other receivables | 0 | 6 |
Expenses to be recovered | ||
DisclosureOfTradeAndOtherReceivablesLineItems [Line Items] | ||
Current other receivables | 10 | 11 |
Allowance for other receivables | ||
DisclosureOfTradeAndOtherReceivablesLineItems [Line Items] | ||
Current other receivables | $ (6) | $ (8) |
12. FINANCIAL ASSETS AND LIAB_6
12. FINANCIAL ASSETS AND LIABILITIES (Details 3) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Financial Assets And Liabilities | |||
Allowance for the impairment of trade receivables, beginning | $ 34 | $ 21 | $ 21 |
Allowance for impairment | 23 | 34 | 13 |
Utilizations | (13) | (10) | (3) |
Reversal of unused amounts | (2) | (1) | 0 |
Exchange differences on translation | (1) | 0 | 0 |
Reclassification to assets held for sale | 0 | 0 | (5) |
Gain on monetary position, net | (8) | (15) | (5) |
Allowance for the impairment of trade receivables, ending | $ 33 | $ 34 | $ 21 |
12. FINANCIAL ASSETS AND LIAB_7
12. FINANCIAL ASSETS AND LIABILITIES (Details 4) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Financial Assets And Liabilities | |||
Allowance for the impairment of other receivables, beginning | $ 8 | $ 6 | $ 10 |
Allowance for impairment | 1 | 7 | 1 |
Gain on monetary position, net | (1) | (3) | 0 |
Decreases | 0 | 0 | (1) |
Reversal of unused amounts | (2) | (2) | (5) |
Allowance for the impairment of other receivables, ending | $ 6 | $ 8 | $ 6 |
12. FINANCIAL ASSETS AND LIAB_8
12. FINANCIAL ASSETS AND LIABILITIES (Details 5) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
DisclosureOfCashAndCashEquivalentsLineItems [Line Items] | ||||
Cash and cash equivalents | $ 225 | $ 241 | $ 31 | $ 69 |
Banks | ||||
DisclosureOfCashAndCashEquivalentsLineItems [Line Items] | ||||
Cash and cash equivalents | 57 | 83 | ||
Investment funds | ||||
DisclosureOfCashAndCashEquivalentsLineItems [Line Items] | ||||
Cash and cash equivalents | 4 | 0 | ||
Time deposits | ||||
DisclosureOfCashAndCashEquivalentsLineItems [Line Items] | ||||
Cash and cash equivalents | $ 164 | $ 158 |
12. FINANCIAL ASSETS AND LIAB_9
12. FINANCIAL ASSETS AND LIABILITIES (Details 6) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of detailed information about borrowings [line items] | ||
Non current borrowings | $ 1,764 | $ 1,835 |
Current borrowings | 183 | 342 |
Financial borrowings | ||
Disclosure of detailed information about borrowings [line items] | ||
Non current borrowings | 161 | 258 |
Current borrowings | 137 | 313 |
Corporate bonds | ||
Disclosure of detailed information about borrowings [line items] | ||
Non current borrowings | 1,603 | 1,457 |
Current borrowings | 32 | 25 |
CAMMESA financing | ||
Disclosure of detailed information about borrowings [line items] | ||
Non current borrowings | 0 | 120 |
Current borrowings | 0 | 3 |
Related parties | ||
Disclosure of detailed information about borrowings [line items] | ||
Current borrowings | $ 14 | $ 1 |
12. FINANCIAL ASSETS AND LIA_10
12. FINANCIAL ASSETS AND LIABILITIES (Details 7) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Financial Assets And Liabilities | |||
Borrowings, beginning | $ 2,177 | $ 1,683 | $ 1,269 |
Proceeds from borrowings | 556 | 245 | 1,250 |
Payment of borrowings | (550) | (240) | (733) |
Accrued interest | 185 | 179 | 143 |
Payment of borrowings' interests | (148) | (133) | (108) |
Net foreign currency exchange difference | 50 | 1,244 | 227 |
Results for the repurchase of corporate bonds | (27) | (2) | 0 |
Costs capitalized in property, plant and equipment | 17 | 8 | 14 |
Decrease through offsetting with trade receivables | (135) | 0 | 0 |
Gain on net monetary position, net | (88) | (795) | (379) |
Repurchase and redemption of corporate bonds | (91) | (13) | (1) |
Other financial results | 1 | 1 | 1 |
Borrowings, ending | $ 1,947 | $ 2,177 | $ 1,683 |
12. FINANCIAL ASSETS AND LIA_11
12. FINANCIAL ASSETS AND LIABILITIES (Details 8) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of detailed information about borrowings [line items] | ||||
Book value | $ 1,947 | $ 2,177 | $ 1,683 | $ 1,269 |
Corporate bonds 1 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Instrument name | 2022 CB | 2022 CB | ||
Company name | Edenor | Edenor | ||
Residual value | $ 166 | $ 166 | ||
Interest | Fixed | Fixed | ||
Rate | 9.75% | 9.75% | ||
Expiration | 2022 | 2022 | ||
Book value | $ 139 | $ 170 | ||
Corporate bonds 2 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Instrument name | Class E CB | Class E CB | ||
Company name | PAMPA | PAMPA | ||
Residual value | $ 575 | $ 607 | ||
Interest | Variable | Variable | ||
Rate | Badlar | Badlar | ||
Expiration | Nov-20 | Nov-20 | ||
Book value | $ 10 | $ 16 | ||
Corporate bonds 3 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Instrument name | Class 1 CB | Class 1 CB | ||
Company name | PAMPA | PAMPA | ||
Residual value | $ 687 | $ 747 | ||
Interest | Fixed | Fixed | ||
Rate | 7.50% | 7.50% | ||
Expiration | Jan-27 | Jan-27 | ||
Book value | $ 698 | $ 510 | ||
Corporate bonds 4 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Instrument name | T Series CB | T Series CB | ||
Company name | PAMPA | PAMPA | ||
Residual value | $ 487 | $ 500 | ||
Interest | Fixed | Fixed | ||
Rate | 7.38% | 7.38% | ||
Expiration | Jul-23 | Jul-23 | ||
Book value | $ 497 | $ 753 | ||
Corporate bonds 5 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Instrument name | Serie 3 CB | |||
Company name | PAMPA | |||
Residual value | $ 293 | |||
Interest | Fixed | |||
Rate | 9.13% | |||
Expiration | Apr-29 | |||
Book value | $ 291 | |||
Corporate bonds 6 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Instrument name | Class 4 CB | |||
Company name | PAMPA | |||
Residual value | $ 34 | |||
Interest | Fixed | |||
Rate | 6.25% | |||
Expiration | Oct-20 | |||
Book value | $ 34 | |||
Regulatory 1 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Company name | PAMPA | |||
Residual value | $ 84 | |||
Interest | Fixed | |||
Rate | Between 4.25% and 7.65% | |||
Expiration | Jan-20 to May-20 | |||
Book value | $ 88 | |||
Regulatory 2 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Company name | PAMPA | |||
Residual value | $ 39 | |||
Interest | Fixed and variable | |||
Rate | 4.21% + Libor | |||
Expiration | May-24 | |||
Book value | $ 39 | |||
Regulatory 3 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Company name | PAMPA | |||
Residual value | $ 7,775 | |||
Interest | Fixed | |||
Rate | Between 40% and 44.14% | |||
Expiration | Apr-21 to Apr-22 | |||
Book value | $ 146 | |||
Regulatory 4 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Company name | PAMPA | |||
Residual value | $ 13 | |||
Interest | Fixed | |||
Rate | 6.00% | |||
Expiration | 2020 | |||
Book value | $ 14 | |||
Regulatory 5 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Instrument name | CAMMESA 2014 Agreement | |||
Company name | PAMPA | |||
Residual value | $ 855 | |||
Interest | Variable | |||
Rate | CAMMESA | |||
Expiration | Regulatory financing was settled under the Agreement for the Regularization and Settlement of Receivables with the WEM (see Note 2.1.7). | |||
Book value | $ 57 | |||
Regulatory 6 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Instrument name | CAMMESA Mapro | |||
Company name | PAMPA | |||
Residual value | $ 174 | |||
Interest | Variable | |||
Rate | CAMMESA | |||
Expiration | Regulatory financing was settled under the Agreement for the Regularization and Settlement of Receivables with the WEM (see Note 2.1.7). | |||
Book value | $ 7 | |||
Regulatory 7 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Instrument name | CAMMESA Mapro | |||
Company name | CPB | |||
Residual value | $ 1,085 | |||
Interest | Variable | |||
Rate | CAMMESA | |||
Expiration | Regulatory financing was settled under the Agreement for the Regularization and Settlement of Receivables with the WEM (see Note 2.1.7). | |||
Book value | $ 59 | |||
Financial loans 1 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Company name | PAMPA | |||
Residual value | $ 17,116 | |||
Interest | Fixed | |||
Rate | Between 3.6% and 6.8% | |||
Expiration | Feb-19 to May-21 | |||
Book value | $ 459 | |||
Financial loans 2 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Company name | PAMPA | |||
Residual value | $ 1,746 | |||
Interest | Fixed and variable | |||
Rate | 6% + Libor | |||
Expiration | May-24 | |||
Book value | $ 46 | |||
Financial loans 3 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Company name | PAMPA | |||
Residual value | $ 550 | |||
Interest | Fixed | |||
Rate | 22.25% | |||
Expiration | Sep-19 to Oct-19 | |||
Book value | $ 15 | |||
Financial loans 4 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Company name | Edenor | Edenor | ||
Residual value | $ 1,885 | $ 1,885 | ||
Interest | Variable | Variable | ||
Rate | Libor + 4.27% | Libor + 4.27% | ||
Expiration | Oct-20 | Oct-20 | ||
Book value | $ 25 | $ 51 | ||
Corporate bonds | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Book value | 1,635 | 1,483 | ||
Regulatory | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Book value | 287 | 123 | ||
Financial loans | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Book value | $ 25 | $ 571 |
12. FINANCIAL ASSETS AND LIA_12
12. FINANCIAL ASSETS AND LIABILITIES (Details 9) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
DisclosureOfTradeAndOtherPayablesLineItems [Line Items] | ||
Non current trade payables | $ 7 | $ 8 |
Non current other payables | 83 | 212 |
Non current trade and other payables | 90 | 220 |
Current trade payables | 383 | 580 |
Current other payables | 71 | 77 |
Current trade and other payables | 454 | 657 |
Customer contributions | ||
DisclosureOfTradeAndOtherPayablesLineItems [Line Items] | ||
Non current trade payables | 3 | 3 |
Current trade payables | 1 | 0 |
Funding contributions for substations | ||
DisclosureOfTradeAndOtherPayablesLineItems [Line Items] | ||
Non current trade payables | 0 | 1 |
Customer guarantees | ||
DisclosureOfTradeAndOtherPayablesLineItems [Line Items] | ||
Non current trade payables | 4 | 4 |
ENRE Penalties and discounts | ||
DisclosureOfTradeAndOtherPayablesLineItems [Line Items] | ||
Non current other payables | 64 | 138 |
Current other payables | 57 | 49 |
Loans (mutuums) with CAMMESA | ||
DisclosureOfTradeAndOtherPayablesLineItems [Line Items] | ||
Non current other payables | 0 | 61 |
Compensation agreements | ||
DisclosureOfTradeAndOtherPayablesLineItems [Line Items] | ||
Non current other payables | 7 | 7 |
Current other payables | 3 | 13 |
Liability with FOTAE | ||
DisclosureOfTradeAndOtherPayablesLineItems [Line Items] | ||
Non current other payables | 0 | 5 |
Payment agreement with ENRE | ||
DisclosureOfTradeAndOtherPayablesLineItems [Line Items] | ||
Non current other payables | 0 | 1 |
Current other payables | 1 | 2 |
Lease liability | ||
DisclosureOfTradeAndOtherPayablesLineItems [Line Items] | ||
Non current other payables | 12 | 0 |
Current other payables | 4 | 0 |
Other | ||
DisclosureOfTradeAndOtherPayablesLineItems [Line Items] | ||
Non current other payables | 0 | 0 |
Current trade payables | 0 | 1 |
Current other payables | 1 | 5 |
Suppliers | ||
DisclosureOfTradeAndOtherPayablesLineItems [Line Items] | ||
Current trade payables | 212 | 250 |
CAMMESA | ||
DisclosureOfTradeAndOtherPayablesLineItems [Line Items] | ||
Current trade payables | 155 | 316 |
Discounts to customers | ||
DisclosureOfTradeAndOtherPayablesLineItems [Line Items] | ||
Current trade payables | 0 | 1 |
Customer advances | ||
DisclosureOfTradeAndOtherPayablesLineItems [Line Items] | ||
Current trade payables | 7 | 6 |
Related parties | ||
DisclosureOfTradeAndOtherPayablesLineItems [Line Items] | ||
Current trade payables | 8 | 6 |
Current other payables | 5 | 0 |
Other creditors | ||
DisclosureOfTradeAndOtherPayablesLineItems [Line Items] | ||
Current other payables | $ 0 | $ 8 |
12. FINANCIAL ASSETS AND LIA_13
12. FINANCIAL ASSETS AND LIABILITIES (Details 10) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets at amortized cost | $ 843 | $ 1,185 |
Financial assets at fair value through profit and loss | 388 | 419 |
Subtotal financial assets | 1,231 | 1,604 |
Non financial assets | 14 | 44 |
Total assets | 1,245 | 1,648 |
Financial liabilities at amortized cost | 2,355 | 2,787 |
Financial liabilities at fair value through profit and loss | 10 | 16 |
Subtotal financial liabilities | 2,365 | 2,803 |
Non financial liabilities | 129 | 252 |
Total liabilities | 2,494 | 3,055 |
Trade and other liabilities | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities at amortized cost | 408 | 610 |
Financial liabilities at fair value through profit and loss | 7 | 15 |
Subtotal financial liabilities | 415 | 625 |
Non financial liabilities | 129 | 252 |
Total liabilities | 544 | 877 |
Borrowings | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities at amortized cost | 1,947 | 2,177 |
Financial liabilities at fair value through profit and loss | 0 | 0 |
Subtotal financial liabilities | 1,947 | 2,177 |
Non financial liabilities | 0 | 0 |
Total liabilities | 1,947 | 2,177 |
Derivative financial instruments | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities at amortized cost | 0 | 0 |
Financial liabilities at fair value through profit and loss | 3 | 1 |
Subtotal financial liabilities | 3 | 1 |
Non financial liabilities | 0 | 0 |
Total liabilities | 3 | 1 |
Trade receivables and other receivables | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets at amortized cost | 622 | 909 |
Financial assets at fair value through profit and loss | 4 | 3 |
Subtotal financial assets | 626 | 912 |
Non financial assets | 14 | 44 |
Total assets | 640 | 956 |
Government securities | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets at amortized cost | 0 | |
Financial assets at fair value through profit and loss | 113 | |
Subtotal financial assets | 113 | |
Non financial assets | 0 | |
Total assets | 113 | |
Government securities | Financial assets at amortized cost | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets at amortized cost | 35 | |
Financial assets at fair value through profit and loss | 0 | |
Subtotal financial assets | 35 | |
Non financial assets | 0 | |
Total assets | 35 | |
Government securities | Financial assets at fair value through profit and loss | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets at amortized cost | 0 | |
Financial assets at fair value through profit and loss | 298 | |
Subtotal financial assets | 298 | |
Non financial assets | 0 | |
Total assets | 298 | |
Shares | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets at amortized cost | 0 | 0 |
Financial assets at fair value through profit and loss | 19 | 12 |
Subtotal financial assets | 19 | 12 |
Non financial assets | 0 | 0 |
Total assets | 19 | 12 |
Investment funds | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets at amortized cost | 0 | 0 |
Financial assets at fair value through profit and loss | 244 | 106 |
Subtotal financial assets | 244 | 106 |
Non financial assets | 0 | 0 |
Total assets | 244 | 106 |
Derivative financial instruments | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets at amortized cost | 0 | |
Financial assets at fair value through profit and loss | 4 | |
Subtotal financial assets | 4 | |
Non financial assets | 0 | |
Total assets | 4 | |
Cash and cash equivalents | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets at amortized cost | 221 | 241 |
Financial assets at fair value through profit and loss | 4 | 0 |
Subtotal financial assets | 225 | 241 |
Non financial assets | 0 | 0 |
Total assets | $ 225 | $ 241 |
12. FINANCIAL ASSETS AND LIA_14
12. FINANCIAL ASSETS AND LIABILITIES (Details 11) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about financial instruments [line items] | |||
Interest income | $ 96 | $ 99 | $ 62 |
Interest expense | (295) | (311) | (228) |
Foreign exchange, net | (75) | (863) | (156) |
Results from financial instruments at fair value | 91 | 64 | 62 |
Gains (losses) from present value measurement | 54 | (74) | (6) |
Other financial results | 39 | 10 | (4) |
Total | (90) | (1,075) | (270) |
Financial assets/liabilities at amortized cost | |||
Disclosure of detailed information about financial instruments [line items] | |||
Interest income | 93 | 94 | 55 |
Interest expense | (275) | (289) | (217) |
Foreign exchange, net | (92) | (865) | (191) |
Results from financial instruments at fair value | 0 | 0 | 0 |
Gains (losses) from present value measurement | 54 | (74) | (6) |
Other financial results | 37 | 12 | (2) |
Total | (183) | (1,122) | (361) |
Financial assets/liabilities at fair value through profit and loss | |||
Disclosure of detailed information about financial instruments [line items] | |||
Interest income | 3 | 5 | 7 |
Interest expense | 0 | 0 | 0 |
Foreign exchange, net | 14 | 86 | 49 |
Results from financial instruments at fair value | 91 | 64 | 62 |
Gains (losses) from present value measurement | 0 | 0 | 0 |
Other financial results | 0 | 0 | 0 |
Total | 108 | 155 | 118 |
Subtotal financial assets/liabilities | |||
Disclosure of detailed information about financial instruments [line items] | |||
Interest income | 96 | 99 | 62 |
Interest expense | (275) | (289) | (217) |
Foreign exchange, net | (78) | (779) | (142) |
Results from financial instruments at fair value | 91 | 64 | 62 |
Gains (losses) from present value measurement | 54 | (74) | (6) |
Other financial results | 37 | 12 | (2) |
Total | (75) | (967) | (243) |
Non Financial assets/liabilities | |||
Disclosure of detailed information about financial instruments [line items] | |||
Interest income | 0 | 0 | 0 |
Interest expense | (20) | (22) | (11) |
Foreign exchange, net | 3 | (84) | (14) |
Results from financial instruments at fair value | 0 | 0 | 0 |
Gains (losses) from present value measurement | 0 | 0 | 0 |
Other financial results | 2 | (2) | (2) |
Total | $ (15) | $ (108) | $ (27) |
12. FINANCIAL ASSETS AND LIA_15
12. FINANCIAL ASSETS AND LIABILITIES (Details 12) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of financial assets [line items] | ||
Financial assets at fair value through profit and loss | $ 388 | $ 419 |
Total assets | 1,231 | 1,604 |
Total liabilities | 2,365 | 2,803 |
Level 1 | ||
Disclosure of financial assets [line items] | ||
Investment funds | 4 | |
Derivative financial instruments | 0 | |
Other receivables | 4 | 3 |
Total assets | 373 | 408 |
Derivative financial instruments | 0 | 0 |
Total liabilities | 0 | 0 |
Level 2 | ||
Disclosure of financial assets [line items] | ||
Investment funds | 0 | |
Derivative financial instruments | 4 | |
Other receivables | 0 | 0 |
Total assets | 4 | 0 |
Derivative financial instruments | 3 | 1 |
Total liabilities | 3 | 1 |
Level 3 | ||
Disclosure of financial assets [line items] | ||
Investment funds | 0 | |
Derivative financial instruments | 0 | |
Other receivables | 0 | 0 |
Total assets | 11 | 11 |
Derivative financial instruments | 0 | 0 |
Total liabilities | 0 | 0 |
Total | ||
Disclosure of financial assets [line items] | ||
Investment funds | 4 | |
Derivative financial instruments | 4 | |
Other receivables | 4 | 3 |
Total assets | 388 | 419 |
Derivative financial instruments | 3 | 1 |
Total liabilities | 3 | 1 |
Government securities | ||
Disclosure of financial assets [line items] | ||
Financial assets at fair value through profit and loss | 113 | 298 |
Government securities | Level 1 | ||
Disclosure of financial assets [line items] | ||
Financial assets at fair value through profit and loss | 113 | 298 |
Government securities | Level 2 | ||
Disclosure of financial assets [line items] | ||
Financial assets at fair value through profit and loss | 0 | 0 |
Government securities | Level 3 | ||
Disclosure of financial assets [line items] | ||
Financial assets at fair value through profit and loss | 0 | 0 |
Shares | ||
Disclosure of financial assets [line items] | ||
Financial assets at fair value through profit and loss | 19 | 12 |
Shares | Level 1 | ||
Disclosure of financial assets [line items] | ||
Financial assets at fair value through profit and loss | 8 | 1 |
Shares | Level 2 | ||
Disclosure of financial assets [line items] | ||
Financial assets at fair value through profit and loss | 0 | 0 |
Shares | Level 3 | ||
Disclosure of financial assets [line items] | ||
Financial assets at fair value through profit and loss | 11 | 11 |
Investment funds | ||
Disclosure of financial assets [line items] | ||
Financial assets at fair value through profit and loss | 244 | 106 |
Investment funds | Level 1 | ||
Disclosure of financial assets [line items] | ||
Financial assets at fair value through profit and loss | 244 | 106 |
Investment funds | Level 2 | ||
Disclosure of financial assets [line items] | ||
Financial assets at fair value through profit and loss | 0 | 0 |
Investment funds | Level 3 | ||
Disclosure of financial assets [line items] | ||
Financial assets at fair value through profit and loss | $ 0 | $ 0 |
13. EQUITY COMPONENTS (Details)
13. EQUITY COMPONENTS (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Equity Components | |||
Earnings for continuing operations attributable to the equity holders of the Company | $ 692 | $ 146 | $ 341 |
Weighted average amount of outstanding shares, continuing operations | 48 | 52 | 51 |
Basic and diluted earnings per share from continuing operations | $ 14.42 | $ 2.81 | $ 6.69 |
(Loss) earnings for discontinued operations attributable to the equity holders of the Company | $ 0 | $ 78 | $ (55) |
Weighted average amount of outstanding shares, discontinued operations | 48 | 52 | 51 |
Basic and diluted earnings per share for discontinued operations | $ .00 | $ 1.50 | $ (1.07) |
Total earnings attributable to the equity holders of the Company | $ 692 | $ 224 | $ 286 |
Weighted average amount of outstanding shares | 48 | 52 | 51 |
Basic and diluted earnings per share | $ 14.42 | $ 4.31 | $ 5.61 |
14. STATEMENT OF CASH FLOWS COM
14. STATEMENT OF CASH FLOWS COMPLEMENTARY INFORMATION (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement Of Cash Flows Complementary Information | |||
Income tax | $ 48 | $ 17 | $ (26) |
Accrued interest | 202 | 219 | 166 |
Depreciations and amortizations | 263 | 234 | 205 |
Constitution of allowances, net | 25 | 28 | 12 |
Constitution (recovery) of provisions, net | 27 | 31 | (4) |
Share of profit from associates and joint ventures | (101) | (118) | (48) |
Income from sale of companies | 0 | (28) | 0 |
Accrual of defined benefit plans | 16 | 5 | 14 |
Net exchange differences | 75 | 863 | 156 |
Result from measurement at present value | (54) | 74 | 6 |
Changes in the fair value of financial instruments | (91) | (64) | (62) |
Results from property, plant and equipment sale and decreases | 5 | 4 | 1 |
Results for the repurchase of corporate bonds | (27) | (2) | 0 |
ImImpairment of property, plant and equipment | 62 | 32 | 0 |
Dividends received | (1) | (1) | (1) |
Compensation agreements | (1) | 5 | 26 |
Result from sale of shareholdings in companies and property, plant, and equipment | 0 | (44) | 0 |
Agreement on the regularization of obligations | (285) | 0 | 0 |
Other financial results of RDSA | (2) | (13) | 0 |
Onerous contract (Ship or pay) | 0 | 7 | 4 |
Gain on monetary position, net | (187) | (629) | (304) |
Other | (8) | 2 | 6 |
Adjustments to reconcile net profit (loss) to cash flows generated by operating activities: | $ (30) | $ 622 | $ 151 |
14. STATEMENT OF CASH FLOWS C_2
14. STATEMENT OF CASH FLOWS COMPLEMENTARY INFORMATION (Details 1) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement Of Cash Flows Complementary Information | |||
Increase (decrease) in trade receivables and other receivables | $ 17 | $ (172) | $ (65) |
Increase in inventories | (28) | (18) | (11) |
Increase in trade payables and other payables | 97 | 22 | 10 |
Increase in deferred income | 0 | 2 | 0 |
Decrease in salaries and social security payable | 15 | 14 | (1) |
Decrease in defined benefit plans | (2) | (3) | (3) |
(Decrease) increase in tax payables | 20 | 35 | (26) |
(Increase) decrease in provisions | (9) | (60) | (48) |
Income tax and minimum notional income tax paid | (87) | (49) | (56) |
(Payments) proceeds from derivative financial instruments, net | 9 | (24) | 23 |
Total changes in operating assets and liabilities | $ 32 | $ (253) | $ (177) |
14. STATEMENT OF CASH FLOWS C_3
14. STATEMENT OF CASH FLOWS COMPLEMENTARY INFORMATION (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Significant non-cash transactions from continued operations: | |||
Acquisition of property, plant and equipment through an increase in trade payables | $ (45) | $ 17 | $ (103) |
Borrowing costs capitalized in property, plant and equipment | (17) | (7) | (16) |
Decreases of property, plant and equipment through an increase in other receivables | 0 | 12 | 0 |
Agreement on the regularization of obligations | 285 | 0 | 0 |
Increase in asset retirement obligation provision through an increase in property, plant and equipment | 1 | 34 | (2) |
Constitution of guarantee of derivative financial instruments, net through the delivery of financial assets at fair value through profit or loss | 3 | (22) | 19 |
Cancellation of other credits for capital contributions in associates | (17) | 0 | 0 |
Compensation of investments at a cost cost through the transfer of other credits | (126) | 0 | 0 |
Loan compensation through the transfer of sales credits | 135 | 0 | 0 |
Increase of right-of-use assets through an increase in other debts | 20 | 0 | 0 |
Significant non-cash transactions from discontinued operations: | |||
Credit pending collection for sale of property, plant and equipment | $ 0 | $ 0 | $ 15 |
17. RELATED PARTIES TRANSACTION
17. RELATED PARTIES TRANSACTIONS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Refinor | |||
Disclosure of transactions between related parties [line items] | |||
Sales of goods and services | $ 18 | $ 16 | $ 5 |
Total related parties | |||
Disclosure of transactions between related parties [line items] | |||
Sales of goods and services | 49 | 69 | 29 |
CTB | |||
Disclosure of transactions between related parties [line items] | |||
Sales of goods and services | 1 | 0 | 0 |
Transener | |||
Disclosure of transactions between related parties [line items] | |||
Sales of goods and services | 0 | 1 | 1 |
TGS | |||
Disclosure of transactions between related parties [line items] | |||
Sales of goods and services | 29 | 51 | 23 |
Greenwind | |||
Disclosure of transactions between related parties [line items] | |||
Sales of goods and services | 1 | 0 | 0 |
SACDE | |||
Disclosure of transactions between related parties [line items] | |||
Sales of goods and services | $ 0 | $ 1 | $ 0 |
17. RELATED PARTIES TRANSACTI_2
17. RELATED PARTIES TRANSACTIONS (Details 1) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Refinor | |||
Disclosure of transactions between related parties [line items] | |||
Purchases of goods and services | $ (19) | $ (34) | $ (17) |
Oldelval | |||
Disclosure of transactions between related parties [line items] | |||
Purchases of goods and services | (1) | (2) | (3) |
Origenes Vida | |||
Disclosure of transactions between related parties [line items] | |||
Purchases of goods and services | 0 | 0 | (1) |
Total related parties | |||
Disclosure of transactions between related parties [line items] | |||
Purchases of goods and services | (43) | (61) | (31) |
TGS | |||
Disclosure of transactions between related parties [line items] | |||
Purchases of goods and services | (22) | (21) | (8) |
SACME | |||
Disclosure of transactions between related parties [line items] | |||
Purchases of goods and services | (1) | (2) | (2) |
SACDE | |||
Disclosure of transactions between related parties [line items] | |||
Purchases of goods and services | $ 0 | $ (2) | $ 0 |
17. RELATED PARTIES TRANSACTI_3
17. RELATED PARTIES TRANSACTIONS (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Salaverri, Dellatorre, Burgio & Wetzler | |||
Disclosure of transactions between related parties [line items] | |||
Fees for services | $ (1) | $ (1) | $ (1) |
Total related parties | |||
Disclosure of transactions between related parties [line items] | |||
Fees for services | $ (1) | $ (1) | $ (1) |
17. RELATED PARTIES TRANSACTI_4
17. RELATED PARTIES TRANSACTIONS (Details 3) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of transactions between related parties [line items] | |||
Other operating income (expenses), net | $ 86 | $ 200 | $ 103 |
Greenwind | |||
Disclosure of transactions between related parties [line items] | |||
Other operating income (expenses), net | (1) | 0 | 0 |
OCP | |||
Disclosure of transactions between related parties [line items] | |||
Other operating income (expenses), net | 0 | (7) | 0 |
SACDE | |||
Disclosure of transactions between related parties [line items] | |||
Other operating income (expenses), net | 1 | 0 | 0 |
Foundation | |||
Disclosure of transactions between related parties [line items] | |||
Other operating income (expenses), net | (2) | (2) | (1) |
Total related parties | |||
Disclosure of transactions between related parties [line items] | |||
Other operating income (expenses), net | $ (2) | $ (9) | $ (1) |
17. RELATED PARTIES TRANSACTI_5
17. RELATED PARTIES TRANSACTIONS (Details 4) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of transactions between related parties [line items] | |||
Finance income | $ 96 | $ 99 | $ 62 |
Total related parties | |||
Disclosure of transactions between related parties [line items] | |||
Finance income | 3 | 3 | 3 |
TGS | |||
Disclosure of transactions between related parties [line items] | |||
Finance income | $ 3 | $ 3 | $ 3 |
17. RELATED PARTIES TRANSACTI_6
17. RELATED PARTIES TRANSACTIONS (Details 5) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
CIESA/TGS | |||
Disclosure of transactions between related parties [line items] | |||
Dividends received | $ 56 | $ 18 | $ 0 |
OCP | |||
Disclosure of transactions between related parties [line items] | |||
Dividends received | 14 | 0 | 0 |
Oldeval | |||
Disclosure of transactions between related parties [line items] | |||
Dividends received | 0 | 1 | 0 |
Citelec | |||
Disclosure of transactions between related parties [line items] | |||
Dividends received | 17 | 0 | 0 |
Total related parties | |||
Disclosure of transactions between related parties [line items] | |||
Dividends received | $ 87 | $ 19 | $ 0 |
17. RELATED PARTIES TRANSACTI_7
17. RELATED PARTIES TRANSACTIONS (Details 6) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
EMESA | |||
Disclosure of transactions between related parties [line items] | |||
Payment of dividends | $ 0 | $ (2) | $ (2) |
APCO Oil | |||
Disclosure of transactions between related parties [line items] | |||
Payment of dividends | 0 | 0 | (2) |
Total related parties | |||
Disclosure of transactions between related parties [line items] | |||
Payment of dividends | $ 0 | $ (2) | $ (4) |
17. RELATED PARTIES TRANSACTI_8
17. RELATED PARTIES TRANSACTIONS (Details 7) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of transactions between related parties [line items] | ||
Trade receivables, current | $ 500 | $ 527 |
Other receivables, non current | 71 | 160 |
Other receivables, current | 61 | 176 |
Trade payables, current | 454 | 657 |
Other payables, current | 71 | 77 |
Borrowings, current | 183 | 342 |
Refinor | ||
Disclosure of transactions between related parties [line items] | ||
Trade receivables, current | 2 | 2 |
Other receivables, non current | 0 | 0 |
Other receivables, current | 0 | 0 |
Trade payables, current | 1 | 3 |
Other payables, current | 0 | 0 |
Borrowings, current | 0 | 0 |
OCP | ||
Disclosure of transactions between related parties [line items] | ||
Trade receivables, current | 0 | |
Other receivables, non current | 15 | |
Other receivables, current | 0 | |
Trade payables, current | 0 | |
Other payables, current | 5 | |
Borrowings, current | 0 | |
SACDE | ||
Disclosure of transactions between related parties [line items] | ||
Trade receivables, current | 0 | 0 |
Other receivables, non current | 0 | 0 |
Other receivables, current | 2 | 1 |
Other | ||
Disclosure of transactions between related parties [line items] | ||
Trade receivables, current | 0 | |
Other receivables, non current | 0 | |
Other receivables, current | 1 | |
Origenes Retiro | ||
Disclosure of transactions between related parties [line items] | ||
Trade payables, current | 0 | |
Other payables, current | 0 | |
Borrowings, current | 1 | |
Total related parties | ||
Disclosure of transactions between related parties [line items] | ||
Trade receivables, current | 6 | 10 |
Other receivables, non current | 53 | 49 |
Other receivables, current | 8 | 5 |
Trade payables, current | 8 | 6 |
Other payables, current | 5 | 0 |
Borrowings, current | 14 | 1 |
TGS | ||
Disclosure of transactions between related parties [line items] | ||
Trade receivables, current | 4 | 8 |
Other receivables, non current | 34 | 38 |
Other receivables, current | 5 | 4 |
Trade payables, current | 3 | |
Other payables, current | 0 | |
Borrowings, current | 0 | |
CIESA | ||
Disclosure of transactions between related parties [line items] | ||
Trade receivables, current | 0 | |
Other receivables, non current | 0 | |
Other receivables, current | 0 | |
Greenwind | ||
Disclosure of transactions between related parties [line items] | ||
Trade receivables, current | 0 | 0 |
Other receivables, non current | 4 | 11 |
Other receivables, current | 0 | $ 0 |
Trade payables, current | 5 | |
Other payables, current | 0 | |
Borrowings, current | 0 | |
SACME | ||
Disclosure of transactions between related parties [line items] | ||
Trade payables, current | 2 | |
Other payables, current | 0 | |
Borrowings, current | 0 | |
Citelec | ||
Disclosure of transactions between related parties [line items] | ||
Trade payables, current | 0 | |
Other payables, current | 0 | |
Borrowings, current | $ 14 |
17. RELATED PARTIES TRANSACTI_9
17. RELATED PARTIES TRANSACTIONS (Details Narrative) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Related party transactions [abstract] | |||
Total remuneration to executive directors | $ 6 | $ 9.6 | $ 31.2 |
18. LEASES (Details)
18. LEASES (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Right of use assets, beginning | $ 0 |
Increase | 20 |
Right of use assets, ending | 20 |
Machinery and equipment | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Right of use assets, beginning | 0 |
Increase | 13 |
Right of use assets, ending | 13 |
Buildings | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Right of use assets, beginning | 0 |
Increase | 7 |
Right of use assets, ending | $ 7 |
18. LEASES (Details 1)
18. LEASES (Details 1) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of quantitative information about right-of-use assets [line items] | ||
Right of use assets depreciation, beginning | $ 0 | |
Depreciation | (4) | |
Right of use assets depreciation, ending | (4) | |
Net book value | 16 | $ 0 |
Machinery and equipment | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Right of use assets depreciation, beginning | 0 | |
Depreciation | (2) | |
Right of use assets depreciation, ending | (2) | |
Net book value | 11 | |
Buildings | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Right of use assets depreciation, beginning | 0 | |
Depreciation | (2) | |
Right of use assets depreciation, ending | (2) | |
Net book value | $ 5 |
18. LEASES (Details 2)
18. LEASES (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Leases | |||
Lease liability, beginning | $ 0 | ||
Incorporation by adoption of IFRS 16 | 8 | ||
Increases | 13 | ||
Discounted value measurement | 3 | ||
Payments | (5) | $ 0 | $ 0 |
Exchange differences on translation | (3) | ||
Lease liability, ending | $ 16 | $ 0 |
18. LEASES (Details 3)
18. LEASES (Details 3) $ in Millions | Dec. 31, 2019USD ($) |
DisclosureOfLeaseLiabilitiesContractualUndiscountedCashFlowsLineItems [Line Items] | |
Lease liabilities contractual undiscounted cash flows | $ 29 |
Less than three months | |
DisclosureOfLeaseLiabilitiesContractualUndiscountedCashFlowsLineItems [Line Items] | |
Lease liabilities contractual undiscounted cash flows | 1 |
Three months to one year | |
DisclosureOfLeaseLiabilitiesContractualUndiscountedCashFlowsLineItems [Line Items] | |
Lease liabilities contractual undiscounted cash flows | 4 |
One to two years | |
DisclosureOfLeaseLiabilitiesContractualUndiscountedCashFlowsLineItems [Line Items] | |
Lease liabilities contractual undiscounted cash flows | 4 |
Two to three years | |
DisclosureOfLeaseLiabilitiesContractualUndiscountedCashFlowsLineItems [Line Items] | |
Lease liabilities contractual undiscounted cash flows | 2 |
Three to four years | |
DisclosureOfLeaseLiabilitiesContractualUndiscountedCashFlowsLineItems [Line Items] | |
Lease liabilities contractual undiscounted cash flows | 1 |
Four to five years | |
DisclosureOfLeaseLiabilitiesContractualUndiscountedCashFlowsLineItems [Line Items] | |
Lease liabilities contractual undiscounted cash flows | 1 |
More than five years | |
DisclosureOfLeaseLiabilitiesContractualUndiscountedCashFlowsLineItems [Line Items] | |
Lease liabilities contractual undiscounted cash flows | $ 16 |
18. LEASES (Details 4)
18. LEASES (Details 4) $ in Millions | Dec. 31, 2019USD ($) |
DisclosureOfLeaseReceivablesContractualUndiscountedCashFlowsLineItems [Line Items] | |
Lease receivables contractual undiscounted cash flows | $ 48 |
Less than three months | |
DisclosureOfLeaseReceivablesContractualUndiscountedCashFlowsLineItems [Line Items] | |
Lease receivables contractual undiscounted cash flows | 2 |
Three months to one year | |
DisclosureOfLeaseReceivablesContractualUndiscountedCashFlowsLineItems [Line Items] | |
Lease receivables contractual undiscounted cash flows | 6 |
One to two years | |
DisclosureOfLeaseReceivablesContractualUndiscountedCashFlowsLineItems [Line Items] | |
Lease receivables contractual undiscounted cash flows | 7 |
Two to three years | |
DisclosureOfLeaseReceivablesContractualUndiscountedCashFlowsLineItems [Line Items] | |
Lease receivables contractual undiscounted cash flows | 7 |
Three to four years | |
DisclosureOfLeaseReceivablesContractualUndiscountedCashFlowsLineItems [Line Items] | |
Lease receivables contractual undiscounted cash flows | 7 |
Four to five years | |
DisclosureOfLeaseReceivablesContractualUndiscountedCashFlowsLineItems [Line Items] | |
Lease receivables contractual undiscounted cash flows | 7 |
More than five years | |
DisclosureOfLeaseReceivablesContractualUndiscountedCashFlowsLineItems [Line Items] | |
Lease receivables contractual undiscounted cash flows | $ 12 |
18. LEASES (Details 5)
18. LEASES (Details 5) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
OperatingLeaseFutureCollectionsLineItems [Line Items] | ||
Total future minimum lease collections | $ 5 | $ 5 |
2019 | ||
OperatingLeaseFutureCollectionsLineItems [Line Items] | ||
Total future minimum lease collections | 0 | 5 |
2020 | ||
OperatingLeaseFutureCollectionsLineItems [Line Items] | ||
Total future minimum lease collections | $ 5 | $ 0 |
18. LEASES (Details Narrative)
18. LEASES (Details Narrative) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Leases | ||
Operating lease income | $ 5 | $ 5 |
22. OIL AND GAS RESERVES (Inf_3
22. OIL AND GAS RESERVES (Information not covered by the auditors' report) (Details) | Dec. 31, 2019MBblsMMcm |
Oil and LNG | |
DisclosureOfProvedReservesLineItems [Line Items] | |
Proved developed reserves | MBbls | 8,804 |
Proved undeveloped reserves | MBbls | 4,746 |
Proved reserves | MBbls | 13,550 |
Natural Gas | |
DisclosureOfProvedReservesLineItems [Line Items] | |
Proved developed reserves | MMcm | 10,534 |
Proved undeveloped reserves | MMcm | 10,168 |
Proved reserves | MMcm | 20,702 |
Argentina | Oil and LNG | |
DisclosureOfProvedReservesLineItems [Line Items] | |
Proved developed reserves | MBbls | 8,804 |
Proved undeveloped reserves | MBbls | 4,746 |
Proved reserves | MBbls | 13,550 |
Argentina | Natural Gas | |
DisclosureOfProvedReservesLineItems [Line Items] | |
Proved developed reserves | MMcm | 10,534 |
Proved undeveloped reserves | MMcm | 10,168 |
Proved reserves | MMcm | 20,702 |