PETROBRAS ARGENTINA S.A.

Transcription

1 PETROBRAS ARGENTINA S.A. Second Quarter 2014 Results Buenos Aires, August 5, 2014 Petrobras Argentina S.A. (Buenos Aires: PESA NYSE: PZE) announces the results for the second quarter ended June 30, Net income attributable to Petrobras Argentina for 2014 second quarter was a P$354 million gain. The gain in 2013 second quarter was P$189 million. The improved gain of P$165 million was mainly attributable to a P$348 million increase in operating income, partially offset by a higher income tax charge of P$190 million. Net income attributable to Petrobras Argentina for the six-month periods ended June 30, 2014 and 2013 was P$1,052 million and P$414 million, respectively. Petrobras Argentina S.A. Second Quarter 2014 Results 1

2 Income Statement (Consolidated Information) Sales 4,938 3,825 Cost of Sales (3,344) (2,859) Gross Profit 1, Administrative and Selling Expenses (589) (409) Exploration Expenses (11) (14) Other Operating Results (108) (182) Equity in Earnings of Affiliates (168) 9 Operating Result Financial Results 18 (3) Income tax (344) (154) Net Result Attributable to: Controlling interest Non-controlling interest Total Sales (in millions of pesos) IIQ 14 IIQ 13 E&P 2,570 1,886 Refining and Distribution 2,755 2,024 Petrochemical 1, Gas & Energy Eliminations between Businesses (2,299) (1,610) Total 4,938 3,825 Petrobras Argentina S.A. Second Quarter 2014 Results 2

3 Gross profit E&P Refining and Distribution Petrochemical Gas & Energy Eliminations between Businesses (29) 32 Total 1, Equity in earnings of affiliates Empresas Mixtas en Venezuela (12) 1 Refinería del Norte S.A CIESA 28 (7) OCP (228) 7 Other 8 3 Total (168) 9 Operating Income E&P Refining and Distribution Petrochemical Gas & Energy Corporate Expenses & Eliminations (225) (135) Total Financial income (expense) (in millions of pesos) IIQ 14 IIQ 13 Net Interests (7) (17) Exchange Differences Other Expense Net (15) (14) Total 18 (3) Petrobras Argentina S.A. Second Quarter 2014 Results 3

4 Balance Sheet (in millions of pesos) (Consolidated Information) Jun-14 Dec-13 Current Assets Cash & Equivalents 1,899 1,193 Accounts receivable - trade 2,802 2,519 Other Assets 3,823 2,884 Total Current Assets 8,524 6,596 Noncurrent Assets Investments 5,057 4,366 Property, plant and equipment 9,842 9,524 Other Assets Total Noncurrent Assets 15,225 14,266 Total Assets 23,749 20,862 Current Liabilities Accounts payable 2,782 2,553 Debt Other Liabilities 1,499 1,267 Total Current Liabilities 4,428 4,028 Noncurrent Liabilities Debt 2,474 2,024 Other Liabilities 3,727 3,115 Total Noncurrent Liabilities 6,201 5,139 Total Liabilities 10,629 9,167 Equity Attributable to the Company's Shareholders 12,205 10,961 Minority Interest ,120 11,695 Petrobras Argentina S.A. Second Quarter 2014 Results 4

5 Cash Flow Statement (Consolidated Information) (Six-Months Period) Jun-14 Jun-13 Net Result Attributable to: Controlling interest , Non-controlling interest Total , Equity in earnings of affiliates 168 (9) 175 (32) Financial income and holding gains, net (51) (109) (455) (194) Depreciation of property, plant and equipment ,206 1,032 Result from the sale of Puesto Hernández - - (181) - Result from the sale of Distrilec S.A Income tax Income tax paid (56) (137) (200) (259) Accrued interest Interest paid (85) (102) (89) (104) Dividends Collected Others (419) (120) (578) (400) , Acquisition of property, plant and equipment (828) (544) (1,657) (1,141) Sale of interests in companies and oil and gas areas Loans (26) (35) (158) (61) Others (15) (1) 10 8 Increase (decrease) in cash and cash equivalents 159 (87) 488 (61) Cash and cash equivalents at beginning 1,721 1,305 1,193 1,260 Effect of exchange rate change on cash Cash and cash equivalents at end 1,899 1,237 1,899 1,237 - Petrobras Argentina S.A. Second Quarter 2014 Results 5

6 GROSS PROFIT BY BUSINESS SEGMENT Oil and Gas Exploration and Production Sales 2,570 1,886 Cost of Sales (1,666) (1,363) Gross Profit In 2014 quarter net sales increased P$684 million to P$2,570 million. Crude oil sales increased P$483 million to P$2,037 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 Hernandez joint venture (UTE) in January 2014 and the natural decline of mature fields. In addition, crude oil production during 2014 quarter was negatively affected by weather conditions. Gas sales rose P$205 million to P$505 million in 2014 quarter, mainly due to an improvement in average sales prices, attributable to the recognition of increased non-conventional gas (Gas Plus) production prices in the Neuquén basin. Sales volumes did not reflect significant changes and totaled 252 MMcf/d in 2014 quarter. It is worth a mention an increase in production from the Neuquén basin attributable to the start of production of non-conventional gas wells which allowed to offset the natural decline of mature fields. Gross profit was P$904 million in 2014 quarter and P$523 million in 2013 quarter. Margin on sales increased to 35.2% in 2014 quarter from 27.7% in 2013 quarter, as a consequence of the before mentioned improvement in average sales prices, partially offset by a rise in the lifting cost. Oil Sales (volumes & average prices) Thousand bbl / day Pesos per barrel IIQ 14 IIQ 13 IIQ 14 IIQ 13 Argentina Bolivia Total Gas Sales (volumes & average prices) Million Cubic Feet / day Pesos per Thousand cubic feet IIQ 14 IIQ 13 IIQ 14 IIQ 13 Argentina Bolivia Total Petrobras Argentina S.A. Second Quarter 2014 Results 6

7 Refining and Distribution Sales 2,755 2,024 Cost of Sales (2,398) (1,794) Gross Profit Sales increased P$731 million to P$2,755 million in 2014 quarter, mainly due to the recovery of refined product sales prices, partially offset by lower sales volumes of crude oil, which accounted for reduced sales of P$73 million in 2014 quarter. In 2014 quarter, total sales volumes of refined products decreased 6.8% to thousand cubic meters in line with the reduced demand in 2014 quarter. Gross profit totaled P$357 million in 2014 quarter and P$230 million in 2013 quarter, with margins on sales of 13% and 11.4%, respectively. This improvement is mainly attributable to the recovery in sales prices, partially offset by an increase in purchase costs of supplies. Refining and Distribution Product Sales (volumes & average prices) Thousand Cubic Meters Pesos per Cubic Meter IIQ 14 IIQ 13 IIQ 14 IIQ 13 Crude Oil ,807 2,375 Diesel Oil ,032 3,947 Gasolines ,448 3,976 Fuel Oil, IFOs & Asphalts ,405 2,911 Other distillates ,258 2,743 Total ,456 3,433 Petrobras Argentina S.A. Second Quarter 2014 Results 7

8 Petrochemicals Sales 1, Cost of Sales (873) (737) Gross Profit In 2014 quarter, sales rose P$237 million to P$1,072 million, as a consequence of an increase in sales of styrenics and products from the catalytic reformer unit. Styrenic products sales revenues rose P$149 million to P$715 million in 2014 quarter, as a consequence of a 57.8% improvement in average sales prices, in line with international reference prices, partially offset by a 19.9% decline in sales volumes mainly attributable to reduced exports, primarily styrene and rubber. Conversely, in 2014 quarter polystyrene and BOPS sales volumes increased due to trade union conflicts that affected Zárate Plant in 2013 quarter. Sales revenues resulting from the catalytic reformer plant operations increased P$88 million to P$357 million in 2014 quarter, mainly due to a 52.4% improvement in average prices, partially offset by a 12.9% decline in sales volumes. Gross profit totaled P$199 million in 2014 quarter and P$98 million in 2013 quarter. Gross margin on sales increased to 18.6% in 2014 quarter from 11.7% in 2013 quarter mainly due to an improvement in international spreads of styrenic products. Petrochemical Product Sales (volumes & average prices) Thousand Tons Pesos per Ton IIQ 14 IIQ 13 IIQ 14 IIQ 13 Styrene & Polystyrene ,761 9,695 SBR ,208 14,122 Other ,668 3,064 Total ,052 5,956 Petrobras Argentina S.A. Second Quarter 2014 Results 8

9 Gas and Energy Sales Cost of Sales (677) (607) Gross Profit Marketing and Transportation of Gas Sales revenues rose P$157 million to P$531 million in 2014 quarter 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$69 million. Revenues from gas sales rose P$227 million to P$528 million in 2014 quarter, mainly due to an improvement in average sales prices, partially offset by a slight 2.3% decline in sales volumes which totaled 251 million cubic feet per day in 2014 quarter. The improvement in average sales prices was mainly attributable to increased 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 with improved average prices. 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, thus generating an equivalent lower level of sales and costs. As from May 2014, Resolution No.529 issued by the Secretary of Energy provided for increases in tariffs and new compensations to electricity generators, with retroactive effect to February In 2014 quarter, net sales for electricity generation decreased P$54 million to P$388 million, mainly as a consequence of reduced generation in 2014 quarter. Along these lines, volumes sold by Genelba, Pichi Picún Leufú, Genelba Plus and Ecoenergía power plants totaled 1,722 Gwh in 2014 quarter and 2,067 Gwh in 2013 quarter, mainly as a consequence of the scheduled shutdowns in Genelba and Genelba Plus Power Plants. Gross profit totaled P$166 million and P$98 million in 2014 and 2013 quarters, respectively, and gross margin on sales increased 42.8% in 2014 quarter from 22.2% in 2013 quarter. The improvement recorded in 2014 quarter is mainly attributable to the before mentioned regulatory changes in the WEM. Petrobras Argentina S.A. Second Quarter 2014 Results 9