PETROBRAS ARGENTINA S.A.

Transcription

1 PETROBRAS ARGENTINA S.A. First Quarter 2014 Results Buenos Aires, April 25, 2014 Petrobras Argentina S.A. (Buenos Aires: PESA NYSE: PZE) announces the results for the first quarter ended March 31, Petrobras Argentina s net income for 2014 first quarter was a P$698 million gain. Petrobras Argentina s gain in 2013 first quarter was P$225 million. The rise in net income of P$473 million is mainly attributable to an increase in operating income of P$616 million and an improvement in financial income of P$210 million, partially offset by a higher income tax charge. Petrobras Argentina S.A. First Quarter 2014 Results 1

2 Income Statement (Consolidated Information) Sales 4,630 3,391 Cost of Sales (3,078) (2,484) Gross Profit 1, Administrative and Selling Expenses (512) (368) Exploration Expenses (14) (18) Other Operating Results 22 (119) Equity in Earnings of Affiliates (7) 23 Operating Result 1, Financial Results 184 (26) Income tax (544) (147) Net Result Attributable to: Controlling interest Non-controlling interest (17) 27 Total Sales (in millions of pesos) IQ 14 IQ 13 E&P 2,310 1,861 Refining 2,471 1,668 Petrochemical 1, Gas & Energy Eliminations between Businesses (2,096) (1,585) Total 4,630 3,391 Petrobras Argentina S.A. First Quarter 2014 Results 2

3 Gross profit E&P 1, Refining Petrochemical Gas & Energy Eliminations between Businesses (143) (42) Total 1, Equity in earnings of affiliates CIESA (TGS) (35) 26 Refinería del Norte Venezuela Results (13) (11) Others 6 (3) Total (7) 23 Operating Income E&P 1, Refining 80 (4) Petrochemical Gas & Energy Corporate Expenses & Eliminations (323) (235) Total 1, Financial income (expense) (in millions of pesos) IQ 14 IQ 13 Net Interests (28) (14) Exchange Differences and Other Results Other Expense Net (43) (25) Total 184 (26) Petrobras Argentina S.A. First Quarter 2014 Results 3

4 Balance Sheet (in millions of pesos) (Consolidated Information) Mar-14 Dec-13 Current Assets Cash & Equivalents 1,751 1,193 Accounts receivable - trade 2,757 2,519 Other Assets 3,567 2,884 Total Current Assets 8,075 6,596 Noncurrent Assets Investments 4,832 4,065 Property, plant and equipment 9,850 9,524 Other Assets Total Noncurrent Assets 15,429 14,266 Total Assets 23,504 20,862 Current Liabilities Accounts payable 2,848 2,553 Debt Other Liabilities 1,458 1,267 Total Current Liabilities 4,537 4,028 Noncurrent Liabilities Debt 2,440 2,024 Other Liabilities 3,798 3,115 Total Noncurrent Liabilities 6,238 5,139 Total Liabilities 10,775 9,167 Equity Attributable to the Company's Shareholders 11,842 10,961 Minority Interest ,729 11,695 Petrobras Argentina S.A. First Quarter 2014 Results 4

5 Cash Flow Statement (Consolidated Information) Net Result Attributable to: Controlling interest Non-controlling interest (17) 27 Total Equity in earnings of affiliates 7 (23) Financial income and holding gains, net (404) (85) Depreciation of property, plant and equipment Result from the sale of Puesto Hernández (181) - Result from the sale of Distrilec S.A Income tax Income tax paid (144) (122) Accrued interest Interest paid (4) (2) Others (159) (280) Acquisition of property, plant and equipment (829) (597) Sale of interests in companies and oil and gas areas Loans (132) (26) Others 25 9 Increase in cash and cash equivalents Cash and cash equivalents at beginning 1,193 1,260 Effect of exchange rate change on cash Cash and cash equivalents at end 1,721 1,305 - Petrobras Argentina S.A. First Quarter 2014 Results 5

6 GROSS PROFIT BY BUSINESS SEGMENT Oil and Gas Exploration and Production Sales 2,310 1,861 Cost of Sales (1,254) (1,243) Gross Profit 1, In 2014 quarter, net sales increased P$449 million to P$2,310 million. Crude oil sales increased P$289 million to P$1,780 million in 2014 quarter, mainly as a result of an improvement in average sales prices. These positive effects were partially offset by a decline in sales volumes attributable to the sale of interest in Puesto Hernández Joint Venture (UTE) in January 2014 and, to a lesser extent, the natural decline of mature fields. Gas sales increased P$170 to P$508 million in 2014 quarter, mainly due to an improvement in average sales prices derived from the recognition of increased non-conventional gas (Gas Plus) production prices in the Neuquén basin. Sales volumes did not reflect significant changes and totaled 257 MMcf/d in 2014 quarter, with an increase in production from the Neuquén basin due to the start of production of non-conventional gas wells which allowed to offset the natural decline of mature fields. Gross profit was P$1,056 million in 2014 quarter and P$618 million in 2013 quarter. Margin on sales rose to 45.7% in 2014 quarter from 33.2% in 2013 quarter, as a result of the improvement in average sales prices mentioned above, partially offset by an increase in the lifting cost. Oil Sales (volumes & average prices) Thousand bbl / day Pesos per barrel IQ 14 IQ 13 IQ 14 IQ 13 Argentina Bolivia Total Gas Sales (volumes & average prices) Million Cubic Feet / day Pesos per Thousand cubic feet IQ 14 IQ 13 IQ 14 IQ 13 Argentina Bolivia Total Petrobras Argentina S.A. First Quarter 2014 Results 6

7 Refining and Distribution Sales 2,471 1,668 Cost of Sales (2,219) (1,526) Gross Profit Sales in the Refining business unit rose P$803 million to P$2,471 million in 2014 quarter, mainly due to the recovery of refined products sales prices, partially offset by lower crude oil sales volumes of P$64 million. In 2014 quarter, total sales volumes of refined products showed an increase of 3.3% to thousand cubic meters from thousand cubic meters in 2013 quarter attributable to a rise in light fuel sales which was offset by a decline in heavy products. Gross profit totaled P$252 million in 2014 quarter and P$142 million in 2013 quarter, with margins on sales of 10.2% and 8.5% in 2014 and 2013 quarters, respectively. This improvement is primarily attributable to the recovery of sales prices, partially offset by an increase in purchase costs for supplies. Refining Product Sales (volumes & average prices) Thousand Cubic Meters Pesos per Cubic Meter IQ 14 IQ 13 IQ 14 IQ 13 Crude Oil ,448 2,187 Diesel Oil ,417 3,631 Gasolines ,654 3,510 Fuel Oil, IFOs & Asphalts ,062 2,623 Other distillates ,315 2,486 Total ,881 3,098 Petrochemicals Sales 1, Cost of Sales (843) (654) Gross Profit In 2014 quarter, sales rose P$326 million to P$1,088 million as a consequence of an increase in sales of styrenics and sales related to the catalytic reformer plant operations. Styrenic products sales revenues rose P$215 million to P$692 million as a result of a 56.5% improvement in average sales prices, in line with international reference prices, partially Petrobras Argentina S.A. First Quarter 2014 Results 7

8 offset by a 7.3% decline in sales volumes attributable to reduced exports. Sales revenues resulting from the catalytic reformer plant operations rose P$111 million to P$396 million, mainly due to a 51.9% improvement in average prices, partially offset by an 8.5% decline in sales volumes. Gross profit totaled P$245 million in 2014 quarter and P$108 million in 2013 quarter. Gross margin on sales increased to 22.5% in 2014 quarter from 14.2% in 2013 quarter mainly due to the improvement in international spreads of styrenic products. Petrochemical Product Sales (volumes & average prices) Thousand Tons Pesos per Ton IQ 14 IQ 13 IQ 14 IQ 13 Styrene & Polystyrene ,239 9,100 SBR ,861 13,235 Other ,443 2,925 Total ,197 5,274 Gas and Energy Sales Cost of Sales (715) (604) Gross Profit Marketing and Transportation of Gas In 2014 quarter sales revenues rose P$178 million to P$597 million mainly due to higher sales of natural gas. As a result of changes in the allocation of liquid fuel sales among business units, as from 2014 quarter liquid fuels are sold to third parties by the Petrochemicals and Refining and Distribution segments and in 2013 quarter accounted for sales revenues of P$68 million. Revenues from gas sales rose P$246 million to P$597 million in 2014 quarter primarily due to an improvement in average sales prices and, to a lesser extent, a 4.7% increase in sales volumes to 269 MMcf/d in 2014 quarter. The improvement in average sales prices was mainly attributable to increased sales volumes from Punta Rosada and El Mangrullo field operations performed under the Gas Plus program and a change in the customers mix, with an increased share of sales to industries and generation companies with higher average sales prices, as a consequence of a reduced consumption at Genelba Power Plant of gas produced by the Company. Gross profit totaled P$41 million and P$29 million in 2014 and 2013 quarters, respectively. Gross margin on sales was 6.9% in both quarters. Petrobras Argentina S.A. First Quarter 2014 Results 8

9 Electricity As from May 2013, retroactive to February 2013, Resolution No. 95 issued by the Secretary of Energy provided for regulatory changes in the Wholesale Electricity Market (WEM), with operations of Genelba Combined Cycle and Pichi Picún Leufú Hydroelectric Complex falling within the scope of this Resolution. This new scheme involves changes in the compensation of generation companies according to their production scale and technology, as well as centralization of contracts in CAMMESA, both of electric power and fuels and related supplies, resulting in an equivalent lower level of sales and costs. In 2014 quarter, net sales for electricity generation decreased P$69 million to P$335 million, mainly as a consequence of the above mentioned regulatory changes in the WEM. Sales volumes attributable to Genelba, Pichi Picún Leufú, Genelba Plus and Ecoenergía power plants totaled 1,851 Gwh in 2014 quarter and 1,933 Gwh in 2013 quarter, with a 72 GWh decline in Pichi Picún Leufú as a result of the lower water supply in 2014 quarter, partially offset by increased volumes from Genelba Plus. Gross profit totaled P$102 million in 2014 quarter and P$52 million in 2013 quarter, with gross margins on sales of 30.4% and 12.9% in 2014 and 2013 quarters, respectively. The improvement in 2014 quarter is primarily attributable to higher volumes sold by Genelba Plus. Petrobras Argentina S.A. First Quarter 2014 Results 9