Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2017shares | |
Document And Entity Information | |
Entity Registrant Name | Pampa Energy Inc. |
Entity Central Index Key | 1,469,395 |
Document Type | 20-F |
Document Period End Date | Dec. 31, 2017 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
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 Common Stock, Shares Outstanding | 2,080,190,514 |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2,017 |
CONSOLIDATED STATEMENT OF FINAN
CONSOLIDATED STATEMENT OF FINANCIAL POSITION - ARS ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
NON CURRENT ASSETS | ||
Investments in joint ventures | $ 4,930 | $ 3,699 |
Investments in associates | 824 | 787 |
Property, plant and equipment | 41,214 | 41,001 |
Intangible assets | 1,586 | 2,103 |
Other assets | 2 | 13 |
Financial assets at fair value through profit and loss | 150 | 742 |
Financial assets at amortized cost | 0 | 62 |
Deferred tax assets | 1,306 | 1,232 |
Trade and other receivables | 5,042 | 4,469 |
Total non current assets | 55,054 | 54,108 |
CURRENT ASSETS | ||
Other assets | 0 | 1 |
Inventories | 2,326 | 3,360 |
Financial assets at fair value through profit and loss | 14,613 | 4,188 |
Financial assets at amortized cost | 25 | 23 |
Derivative financial instruments | 4 | 13 |
Trade and other receivables | 19,145 | 14,144 |
Cash and cash equivalents | 799 | 1,421 |
Total current assets | 36,912 | 23,150 |
Assets classified as held for sale | 12,501 | 19 |
Total assets | 104,467 | 77,277 |
SHAREHOLDERS´ EQUITY | ||
Share capital | 2,080 | 1,938 |
Share premium | 5,818 | 4,828 |
Treasury shares | 3 | 0 |
Treasury shares cost | (72) | 0 |
Legal reserve | 300 | 232 |
Voluntary reserve | 5,146 | 3,862 |
Other reserves | 140 | 135 |
Retained earnings (Acumulated losses) | 3,243 | (11) |
Other comprehensive income | 252 | 70 |
Equity attributable to owners of the company | 16,910 | 11,054 |
Non-controlling interest | 3,202 | 3,020 |
Total equity | 20,112 | 14,074 |
NON CURRENT LIABILITIES | ||
Trade and other payables | 6,404 | 5,336 |
Borrowings | 37,126 | 15,286 |
Deferred revenue | 195 | 200 |
Salaries and social security payable | 120 | 94 |
Defined benefit plans | 992 | 921 |
Deferred tax liabilities | 1,526 | 3,796 |
Income tax and minimum notional income tax provision | 863 | 934 |
Taxes payables | 366 | 306 |
Provisions | 4,435 | 6,267 |
Total non current liabilities | 52,027 | 33,140 |
CURRENT LIABILITIES | ||
Trade and other payables | 18,052 | 12,867 |
Borrowings | 5,840 | 10,686 |
Deferred revenue | 3 | 1 |
Salaries and social security payable | 2,154 | 1,745 |
Defined benefit plans | 121 | 112 |
Income tax and minimum notional income tax provision | 943 | 1,454 |
Taxes payables | 1,965 | 2,392 |
Derivative financial instruments | 82 | 0 |
Provisions | 798 | 806 |
Total current liabilities | 29,958 | 30,063 |
Liabilities associated to assets classified as held for sale | 2,370 | 0 |
Total liabilities | 84,355 | 63,203 |
Total liabilities and equity | $ 104,467 | $ 77,277 |
CONSOLIDATED STATEMENT OF COMPR
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS) - ARS ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of comprehensive income [abstract] | |||
Revenue | $ 50,347 | $ 25,110 | $ 7,106 |
Cost of sales | (34,427) | (20,153) | (7,038) |
Gross profit | 15,920 | 4,957 | 68 |
Selling expenses | (2,904) | (2,132) | (973) |
Administrative expenses | (4,905) | (3,628) | (1,221) |
Exploration expenses | (44) | (94) | (3) |
Other operating income | 3,388 | 4,164 | 6,517 |
Other operating expenses | (2,951) | (1,876) | (769) |
Reversal of impairment of property, plant and equipment | 461 | 0 | 25 |
Reversal of impairment of intangible assets | 82 | 0 | 0 |
Share of profit of joint ventures | 1,064 | 105 | 9 |
Share of profit (loss) from associates | 44 | 7 | (10) |
Income from the sale of subsidiaries and financial assets | 0 | 480 | 0 |
Operating income | 10,155 | 1,983 | 3,643 |
Finance income | 1,432 | 849 | 331 |
Finance costs | (5,112) | (4,277) | (1,257) |
Other financial results | (2,266) | (80) | 1,719 |
Financial results, net | (5,946) | (3,508) | 793 |
Profit (loss) before income tax | 4,209 | (1,525) | 4,436 |
Income tax and minimum notional income tax | 1,367 | 1,201 | (587) |
Profit (Loss) of the year from continuing operations | 5,576 | (324) | 3,849 |
Profit of the year from discontinued operations | 94 | 72 | 0 |
Profit (loss) of the year | 5,670 | (252) | 3,849 |
Other comprehensive income (loss) items that will not be reclassified to profit or loss | |||
Remeasurements related to defined benefit plans | 1 | (30) | (1) |
Income tax | 0 | 10 | 0 |
Share of (loss) income from joint ventures | (6) | (5) | 1 |
Other comprehensive income (loss) Items that may be reclassified to profit or loss | |||
Exchange differences on translation | (93) | (15) | 0 |
Income tax | 0 | (12) | 0 |
Other comprehensive income of the year from continuing operations, net of tax | (98) | (52) | 0 |
Other comprehensive income of the year from discontinued operations | 603 | 249 | 0 |
Total comprehensive income (loss) of the year | 6,175 | (55) | 3,849 |
Total income (loss) of the year attributable to: | |||
Owners of the company | 4,606 | (11) | 3,065 |
Non - controlling interest | 1,064 | (241) | 784 |
Total income (loss) of the year | 5,670 | (252) | 3,849 |
Total income (loss) of the year attributable to owners of the company: | |||
Continuing operations | 4,623 | (93) | 3,065 |
Discontinued operations | (17) | 82 | 0 |
Total income (loss) of the year attributable to owners of the company | 4,606 | (11) | 3,065 |
Total comprehensive income (loss) of the year attributable to: | |||
Owners of the company | 4,788 | 90 | 3,066 |
Non - controlling interest | 1,387 | (145) | 783 |
Total comprehensive income (loss) of the year | 6,175 | (55) | 3,849 |
Total comprehensive income (loss) of the year attributable to owners of the company: | |||
Continuing operations | 4,522 | (142) | 3,066 |
Discontinued operations | 266 | 232 | 0 |
Total comprehensive income (loss) of the year attributable to owners of the company | $ 4,788 | $ 90 | $ 3,066 |
Earnings per share attributable to the equity holders of the company during the year | |||
Basic and diluted earnings (loss) per share from continuing operations | $ 2.3455 | $ (0.0536) | $ 2.2760 |
Basic and diluted (loss) earnings per share from discontinued operations | (0.0086) | 0.0472 | .0000 |
Total basic and diluted earnings (loss) per share | $ 2.3369 | $ (0.0063) | $ 2.2760 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY - ARS ($) $ in Millions | Share capital | Share premium | Treasury shares | Treasury shares cost | Legal reserve | Reserve for directors options | Voluntary reserve | Other reserves | Other comprehensive income / (loss) for the year | Retained earnings (Accumulated losses) | Subtotal | Non-controlling interest | Total | |
Beginning balance at Dec. 31, 2014 | $ 1,314 | $ 228 | $ 0 | $ 0 | $ 14 | $ 266 | $ 272 | $ 115 | [1] | $ (32) | $ 743 | $ 2,920 | $ 633 | $ 3,553 |
Constitution of legal reserve - Shareholders’ meeting | 37 | (37) | 0 | 0 | ||||||||||
Constitution of voluntary reserve - Shareholders’ meeting | 706 | (706) | 0 | 0 | ||||||||||
Issuance of shares on exercise of stock options | 382 | 883 | (266) | 999 | 999 | |||||||||
Dividends attributables to non-controlling interest | (26) | (26) | ||||||||||||
Sale of interest in subsidiaries | 5 | [1] | 5 | 1 | 6 | |||||||||
Acquisition of own shares | 0 | |||||||||||||
Profit (loss) of the year | 3,065 | 3,065 | 784 | 3,849 | ||||||||||
Other comprehensive income / (loss) for the year | 1 | 1 | (1) | 0 | ||||||||||
Ending balance at Dec. 31, 2015 | 1,696 | 1,111 | 0 | 0 | 51 | 0 | 978 | 120 | [1] | (31) | 3,065 | 6,990 | 1,391 | 8,381 |
Constitution of legal reserve - Shareholders’ meeting | 153 | (153) | 0 | 0 | ||||||||||
Constitution of voluntary reserve - Shareholders’ meeting | 2,912 | (2,912) | 0 | 0 | ||||||||||
Recomposition of legal reserve - Shareholders’ meeting | 28 | (28) | 0 | 0 | ||||||||||
Dividends attributables to non-controlling interest | (82) | (82) | ||||||||||||
Acquisition of subsidiaries | 7,869 | 7,869 | ||||||||||||
Sale of interest in subsidiaries | 3 | [1] | 3 | 1 | 4 | |||||||||
Public offer for the acquisition of subsidiaries' shares | 141 | 1,387 | 1,528 | (4,260) | (2,732) | |||||||||
Acquisition of own shares | 0 | |||||||||||||
Merger with subsidiaries | 101 | 2,330 | 2,431 | (1,764) | 667 | |||||||||
Stock compensation plans | 12 | 12 | 10 | 22 | ||||||||||
Profit (loss) of the year | (11) | (11) | (241) | (252) | ||||||||||
Other comprehensive income / (loss) for the year | 101 | 101 | 96 | 197 | ||||||||||
Ending balance at Dec. 31, 2016 | 1,938 | 4,828 | 0 | 0 | 232 | 0 | 3,862 | 135 | [1] | 70 | (11) | 11,054 | 3,020 | 14,074 |
Beginning balance at Dec. 31, 2016 | 1,938 | 4,828 | 0 | 0 | 232 | 0 | 3,862 | 135 | [1] | 70 | (11) | 11,054 | 3,020 | 14,074 |
Constitution of legal reserve - Shareholders’ meeting | 68 | (68) | 0 | 0 | ||||||||||
Constitution of voluntary reserve - Shareholders’ meeting | 1,284 | (1,284) | 0 | 0 | ||||||||||
Dividends attributables to non-controlling interest | (88) | (88) | ||||||||||||
Acquisition of own shares | (3) | 3 | (72) | (72) | 0 | (72) | ||||||||
Merger with subsidiaries | 145 | 976 | 1,121 | (1,121) | 0 | |||||||||
Stock compensation plans | 14 | 5 | 19 | 4 | 23 | |||||||||
Profit (loss) of the year | 4,606 | 4,606 | 1,064 | 5,670 | ||||||||||
Other comprehensive income / (loss) for the year | 182 | 182 | 323 | 505 | ||||||||||
Ending balance at Dec. 31, 2017 | $ 2,080 | $ 5,818 | $ 3 | $ (72) | $ 300 | $ 0 | $ 5,146 | $ 140 | [1] | $ 252 | $ 3,243 | $ 16,910 | $ 3,202 | $ 20,112 |
[1] | Includes the result of operations with non-controlling interests that not representing a loss of control and reserves for stock-based compensation plans. |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS - ARS ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities: | |||
Total profit (loss) for the year from continuing operations | $ 5,576 | $ (324) | $ 3,849 |
Total profit (loss) for the year from discontinued operations | 94 | 72 | 0 |
Adjustments to reconcile net profit (loss) to cash flows generated by operating activities: | |||
Income tax and minimum notional income tax | (1,367) | (1,201) | 587 |
Accrued interest | 3,590 | 3,345 | 877 |
Depreciations and amortizations | 3,421 | 2,201 | 720 |
Constitution of allowances, net | 182 | 235 | 121 |
Constitution of provisions, net | 360 | 450 | 228 |
Share of (loss) profit of joint ventures and associates | (1,108) | (112) | 1 |
Accrual of defined benefit plans | 318 | 232 | 122 |
Net exchange differences | 3,558 | 1,099 | 566 |
Result from measurement at present value | 181 | 97 | (23) |
Changes in the fair value of financial instruments | (1,446) | (1,100) | (2,244) |
Results from property, plant and equipment sale and decreases | 37 | 85 | 9 |
Reversal of impairment of property, plant and equipment and intangible assets | (543) | 0 | (25) |
Income from the sale of investments in subsidiaries | 0 | (480) | 0 |
Recognition of income - provisional remedies - CAMMESA Note MEyM No. 2016-04484723 | 0 | (1,126) | 0 |
Higher costs recognition - SE Resolution No. 250/13 and subsequent Notes | 0 | (82) | (551) |
Income recognition on account of the RTI - Res. SE No. 32/15 | 0 | (419) | (496) |
Gain from cancellation of TGS Loan | 0 | 0 | (215) |
Income recognition for arbitral proceedings | 0 | 0 | (75) |
Dividends received | (33) | (6) | (4) |
Compensation agreements | 645 | 502 | 223 |
Other financial results | 22 | 49 | 10 |
Onerous contract (Ship or pay) | 90 | (150) | 0 |
Other | 54 | (42) | 105 |
Changes in operating assets and liabilities: | |||
Increase in trade receivables and other receivables | (3,676) | (3,495) | (988) |
(Increase) decrease in inventories | (480) | 40 | (90) |
Increase in trade payables and other payables | 1,047 | 3,531 | 1,312 |
Increase in deferred income | 0 | 47 | 45 |
Increase in salaries and social security payable | 312 | 409 | 179 |
Decrease in defined benefit plans | (100) | (87) | (36) |
(Decrease) increase in tax payables | (75) | 989 | 103 |
(Decrease) increase in provisions | (1,198) | 232 | (34) |
Income tax and minimum notional income tax paid | (1,284) | (438) | (121) |
Constitution of guarantees of derivative financial instruments | 0 | (214) | 0 |
Proceeds from derivative financial instruments | 560 | 57 | 185 |
Funds obtained from PUREE (SE Res. No. 1037/07) | 0 | 0 | 26 |
Net cash generated by operating activities from discontinued operations | 1,979 | 1,549 | 0 |
Net cash generated by operating activities | 10,716 | 5,945 | 4,366 |
Cash flows from investing activities: | |||
Payment for property, plant and equipment | (10,725) | (6,244) | (4,798) |
Payment for financial assets | (11,706) | (221) | (3,506) |
Acquisition of intangible assets | 0 | (29) | 0 |
Payment for companies' acquisitions | 0 | (9,145) | 0 |
Proceeds from property, plant and equipment sale | 0 | 1,151 | 0 |
Proceeds from financial assets' sale and amortization | 9,272 | 3,650 | 2,282 |
Proceeds from sales of subsidiaries | 328 | 305 | 0 |
Dividends received | 40 | 64 | 4 |
Proceeds from loans | 22 | 6 | 1 |
(Subscription) recovery of investment funds, net | (5,340) | (107) | (1,391) |
Proceeds from the recovery of guarantee deposits | 0 | 0 | 293 |
Net cash used in investing activities from discontinued operations | (1,176) | (661) | 0 |
Net cash used in investing activities | (19,285) | (11,231) | (7,115) |
Cash flows from financing activities: | |||
Proceeds from borrowings | 27,567 | 19,244 | 4,793 |
Payment of borrowings | (16,150) | (6,813) | (2,281) |
Payment of borrowings' interests | (2,469) | (1,519) | (733) |
Payment for acquisition of own shares | (72) | 0 | 0 |
Capital contributions received | 0 | 0 | 999 |
Payment for the public offer for the acquisiton of subsidiaries' shares | 0 | (3,233) | 0 |
Payments of dividends from subsidiaries to third parties | (44) | (37) | (26) |
Repayment of own debt | (28) | (893) | (121) |
Proceeds from sales of shares in subsidiaries | 0 | 3 | 6 |
Proceeds from salaries mutuum | 0 | 0 | 215 |
Net cash used in financing activities from discontinued operations | (719) | (922) | 0 |
Net cash generated by financing activities | 8,085 | 5,830 | 2,852 |
(Decrease) increase in cash and cash equivalents | (484) | 544 | 103 |
Cash and cash equivalents at the beginning of the year | 1,421 | 517 | 335 |
Exchange difference generated by cash and cash equivalents | 23 | 360 | 79 |
Cash and cash equivalents classified as held for sale | (161) | 0 | 0 |
(Decrease) increase in cash and cash equivalents | (484) | 544 | 103 |
Cash and cash equivalents at the end of the year | 799 | 1,421 | 517 |
Significant non-cash transactions from continued operations: | |||
Acquisition of property, plant and equipment through an increase in trade payables | (2,418) | (537) | (989) |
Borrowing costs capitalized in property, plant and equipment | (369) | (419) | (434) |
Decrease in borrowings through offsetting with trade receivables | (4) | (242) | (92) |
Increase in asset retirement obligation provision | (9) | (158) | (27) |
(Constitution) Recovery of guarantee of derivative financial instruments, net through the delivery of financial assets at fair value through profit or loss | 459 | 95 | (138) |
Outstanding receivable for the sale of interests in subsidiaries and financial assets | 0 | (1,200) | 0 |
Decrease of loans through the delivery of subsidiaries’ shares | 0 | (1,179) | 0 |
Decrease in loans through compensation with other credits | 0 | (1,951) | 0 |
Property, Plant and Equipment decrease due to Transactional Agreement | 0 | 0 | 236 |
Offsetting of loans through the delivery of rights over arbitral actions | 0 | 0 | (308) |
Amounts received from CAMMESA through FOCEDE for investment loan | 0 | 0 | 724 |
Increase from offsetting of PUREE-related liability against receivables (SE Res. No. 250/13, subsequent Notes and SE Res. 32/15) | 0 | 0 | 11 |
Increase from offsetting of liability with CAMMESA for electricity purchases against receivables (SE Res. No. 250/13, subsequent Notes and SE Res. 32/15) | 0 | 0 | 158 |
Decrease from offseting of other liabilities with CAMMESA from loans for consumption (Mutuums) granted for higher salary costs against receivables (SE Resolution 32/15) | 0 | 0 | (496) |
Collection of other credits through the delivery of government bonds | 0 | 502 | 0 |
Significant non-cash transactions from discontinued operations: | |||
Acquisition of property, plant and equipment through an increase in trade payables | (9) | (39) | 0 |
Decrease (increase) in asset retirement obligation provision | 306 | (204) | 0 |
Receivable for property, plant and equipment sale, pending of collection | $ 364 | $ 0 | $ 0 |
1. GENERAL INFORMATION AND GROU
1. GENERAL INFORMATION AND GROUP STRUCTURE | 12 Months Ended |
Dec. 31, 2017 | |
General Information And Group Structure | |
GENERAL INFORMATION AND GROUP STRUCTURE | 1.1 General information The Company is the largest fully integrated power company in Argentina and, directly and through its subsidiaries, it participates in the electricity and oil and gas value chains. In the generation segment, the Company has a 3,756 MW installed capacity, which represents approximately 10.3% of Argentina’s installed capacity, and is the third largest independent generator in the country. Additionally, the Company is currently undergoing a process to expand its capacity by 598 MW. In the electricity distribution segment, the Company has a controlling interest in Edenor, the largest electricity distributor in Argentina, which has 3 million customers and a concession area covering the Northern part of the City of Buenos Aires and Northwestern Zone of Greater Buenos Aires. In the oil and gas segment, the Company is one of the leading oil and natural gas producers in Argentina, with operations in 16 production areas and 9 exploratory areas and an average annual production level for the year 2017 (without considering the production of the Medanito-La Pampa area for the benefit of PEPASA) Due to the divestment mentioned in Note 1.5.2, certain assets from de segment and the liabilities associated have been classified as held for sale. In the refining and distribution segment, the Company owns the Dr. Ricardo Eliçabe Refinery in the City of Bahía Blanca, which has a 30,200 barrels/day capacity, and has a 28.5% interest in Refinor (owner of a refinery located in the Province of Salta, and 81 gas stations in Northern Argentina). Furthermore, the Company sells fuels through a network of 250 gas stations located in the center and south of the country, and the Dock Sud and Caleta Paula Terminals. Additionally, the Company produces lubricants in its Avellaneda industrial plant. Due to the divestment mentioned in Note 1.5.1, certain assets from de segment and the liabilities associated have been classified as held for sale. In the petrochemicals segment, the Company has three high-complexity plants producing a wide variety of petrochemical products, including styrenics and synthetic rubber, and holding a large market share. Finally, through its holding and others segment, the Company participates in the electricity and gas transportation businesses, conducts financial investment transactions and maintains investments in complementary 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 20,718 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 9,184 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 1.2. Acquisition of PPSL’s Capital stock On May 13, 2016, Petrobras Internacional Braspetro B.V. (“Petrobras Holland”), a subsidiary of Petróleo Brasileiro S.A. (“Petrobras Brazil”) and the Company executed a share purchase agreement for the acquisition by the Company of the whole capital stock of PPSL, which holds 67.1933% of the capital stock and voting rights in Petrobras (respectively, the “Share Purchase Agreement” and the “Transaction”). As part of the Transaction and the purchase price, the Company acquired a Petrobras Holland credit with PPSL (the “PPSL Credit”) for an amount to US$ 80 million. On July 27, 2016, the Transaction was closed upon the meeting of all applicable conditions precedent. On November 21, 2016, the parties agreed on certain adjustments to the Transaction’s final price, which was set at US$900 million, financed as follows: a) cash from the Company US$ 278 million; b) syndicated loan US$ 271 million c) funds obtained from the sale of TGS US$ 161 million; d) YPF financing US$ 140 million; and e) EMES financing US$ 50 million. The following operations were completed after the closing of the Transaction: (i) On October 27, 2017, an affiliate of Petrobras Brazil acquired 33.6% of all rights and obligations in the concession over the Neuquén River area for an amount of US$ 72 million, and 100% of the rights and obligations pursuant to the Operating Agreement entered into by Petrobras, Bolivia branch, and YPF Bolivia regarding the Colpa and Caranda areas in Bolivia for a negative value of US$ 20 million. (ii) On October 14, 2017, YPF acquired of Petrobras 33.33% of all rights and obligations in the concession over the Río Neuquén area for the amount of US$ 72 million and the 80% interest in the concession on 1.2.1 Fair value of the acquisition The following table details the fair value of the transferred consideration, the fair values of the acquired assets, the assumed liabilities and the non-controlling interest corresponding to PPSL’s acquisitions as at July 27, 2016 (in millions of Argentine Pesos): Purchase price allocation Cash payment 13,362 Total consideration transferred 13,362 Investments in joint ventures 3,407 (a) Investments in associates 777 (b) Financial assets at amortized cost 21,801 (c) Intangible assets 224 (d) Financial assets at fair value through profit and loss 653 (b) Financial assets at amortized cost 315 Trade and other receivables 7,256 (e) Inventories 3,072 Cash and cash equivalents 4,384 Non current assets classified as held for sale 3,405 Trade and other payables (4,324) Borrowings (7,434) Salaries and social security payable (383) Defined benefit plans (484) Deferred tax liabilities (4,096) Taxes payables (859) Provisions (5,793) (f) Liabilities associated with assets classified as held for sale (240) Income tax and minimum notional income tax provision (1,444) Non-controlling interest (7,869) (g) Goodwill 994 (h) Total purchase price allocation 13,362 (a) Interests in joint ventures (b) Interests in associates: - Interests in mixed companies in Venezuela Since the acquisition of PPSL entailed a change in Petrobras’ indirect parent company, the written authorization by the Venezuelan Government required by section 6.3 of the timely executed Conversion Contracts should be obtained. Given that as of the date of the acquisition of PPSL, the authorizations regarding the change of indirect control by the Government of Venezuela were not obtained, and considering the fact that the contracts of mixed companies provide the mandatory transfer of the shares for these cases, the Company has determined market value for its investment as of the date of acquisition was zero, considering: i) the monetary and fiscal policies implemented by the Venezuelan government together with the significant drop in international oil prices since 2014 that have eroded the ability of the mixed companies to efficiently operate the producing fields that resulted in increasing losses and reduction of equity in those investments, and ii) that there is very unlikely to acquire these assets in a stand-alone transaction, as conversion contracts establish that the transfer of direct control of the shares without obtaining prior approval of Venezuelan Government, implies that such participation is considered finished and all of the shares shall be transferred without any consideration in exchange for those shares. As of the issuance of these financial statements, the Company has not obtained the above-mentioned authorizations; however the Company is working on the requirements of the Government of Venezuela´s authorities, including the presentation of development and remediation plans for the respective areas. - Other associates and other investments classified as financial asset at fair value through profit and loss (c) Property, plant and equipment: - Mining Property: - Other Property, plant and equipment (d) Intangible Assets Useful life was based on the amount and the moment on which the Company expects to derive economic benefits. It was assigned an average useful life of five years based, among other factors, on the contractual agreements, consumers’ behaviors and economic factors associated with the combined companies. (e) Acquired Receivables (f) Contingent Liabilities In March 2017, and as a result of the Company’s adherence to the regularization regime (moratorium) regarding certain identified liabilities (see detail in Note 43), which granted certain benefits consisting of the forgiveness of tax fines and a reduction of compensatory interest, a payment obligation in the amount of $ 171 million was generated in favor of Petrobras Brasil as contingent consideration under the share purchase agreement on account of the acquisition of Petrobras paid in April 18, 2017. (g) Non-controlling interest in Petrobras (h) Goodwill The Company has incurred in transaction expenses associated with the acquisition of PPSL, the mandatory tender offer and voluntary public offer for the exchange of Petrobras’shares in the amount of $ 305 million during the fiscal year ended December 31, 2016, mainly corresponding to fees and advisory services included in Administrative Expenses in the Statement of Comprehensive Income. As a result of the acquisition of PPSL, the Company paid $ 13,362 million, which net of cash and cash equivalent acquired of $ 4,384, results in a net cash flow of $ 8,978, which is disclosed in the line “Payment for companies’ acquisitions” in statement of cash flow within investment activities. 1.2.2 Mandatory tender offer and voluntary public offer for the exchange of Petrobras’shares (the “offers”) Pursuant to the provisions of Sections 87 and following provisions of Capital Market Act No. 26,831 and Section II, Chapter II, Title III of the CNV provisions on mandatory tender offers on account of changes of control and acquisition of significant indirect interests, on May 20, 2016 the Company's Board of Directors resolved to make a tender offer for the acquisition of the 662,445,264 Petrobras’ shares held by the investing public, which represent 32.81% of the capital stock and voting rights in Petrobras (the “Cash Acquisition Offer”), subject to the Transaction Close and the approval of the Cash Acquisition Offer by the CNV and the SEC. Furthermore, the Board of Directors decided to launch a voluntary public offer for the exchange of Petrobras’ shares, (the “Exchange Offer”) subject to the same conditions applicable to the Cash Acquisition Offer to avoid a higher use of cash or greater financial indebtedness to meet the Cash Acquisition Offer. The authorization to make the Offer to Petrobras’ minority shareholders at a price per share of US$ 0.6825 which, converted into pesos at the official exchange rate at the Transaction’s closing date, amounts to $ 10.3735, was granted through an ordinance issued by the CNV’s Board of Directors on September 22, 2016 and Resolution No. 18,243 issued by the CNV on September 28, 2016 (approving the issuance of Pampa Shares). On October 3, 2016, the Company requested the SEC to expedite the effectiveness of the International Tender Offer, which was granted on October 6, 2016 and finishing on November 14, 2016. On November 22 and 23, 2016 the Offers were completed with the following results: (i) In the domestic tranche, 365,532,273 Petrobras’ common shares were submitted, out of which 311,669,706 shares opted for the Cash Acquisition Offer at a price of $ 10.3735 per share, which entailed a $ 3,233.1 million disbursement; and 53,862,567 shares were exchanged for the Company’s common shares at a 0.5253 ratio, which entailed the issuance of 28,294,006 new Company common shares. (ii) In the international tranche, 21,388,145 Petrobras’ ADRs were submitted to the Exchange Offer and were exchanged for ADSs of the Company at a 0.2101 ratio, which entailed the issuance of 4,493,649 ADSs of the Company, equivalent to 112,341,232 shares of the Company. As a result of the Offers, the Company has increased its direct and indirect interests in Petrobras to 90.4%. 1.3. Sale of participations 1.3.1. Sale and swap of indirect interest in TGS On July 18, 2016, the Company executed an agreement with Grupo Inversor Petroquímica S.L. (members of the GIP Group, headed by the Sielecki family), WST S.A. and PCT L.L.C. (members of the Werthein group) (jointly, the “Purchasers”) for the sale of 25.5% indirect interest in TGS (through PEPCA, owner of a 10% equity interest in CIESA and through other subsidiaries rightholders as the only beneficiary of the trust that owns 40% equity interest in CIESA, the “interest in TGS”) for a base price of US$ 241 million, subject to certain adjustments resulting from PEPCA’s financial position at the closing of the transaction. As part of the conditions for the closing of the transaction, the Purchasers agreed to assume the risk in case the necessary regulatory approvals are not obtained. Furthermore, and subject to the closing of the acquisition of PPSL, the Company acquired an option, valid until February 2017, to swap the rights as sole beneficiary of the CIESA Trust in exchange of the shares of PHA, which holds 25% of CIESA and 15% of CIESA’s shares, both of which are owned by Petrobras Argentina. (the “Exchange”). On July 27, 2016 the transaction was perfected and the economic impact of the transaction reached to a gain of approximately $ 480 million. On January 11, 2017, the CNDC approved the acquisition by the Company of 40% of CIESA’s capital stock, an interest that had been acquired by the Company through CIESA’s financial debt swap executed on July, 2012 and 100% of PEPCA shares acquired on March, 2011. On January 17, 2017, the exchange whereby the Purchasers transferred to PHA their capacity as beneficiaries and trustees of the trust holding 40% of CIESA's capital stock and voting rights, and the Company and PHA transferred to the Purchasers shares representing 40% of CIESA’s capital stock and voting rights, was perfected; the Group thus keeping a 10% direct interest in CIESA's capital stock and voting rights. The Exchange was approved by ENARGAS on December 29, 2016. The Purchasers and the Company’s direct and indirect interests in TGS remain unaltered as a result of the Exchange. Furthermore, on this same date the Purchasers paid the balance of the purchase price for a total amount of US$ 80 million plus applicable interest. 1.3.2. 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 Corti 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 US$ 11.2 million. As a result of the transaction, the Company has deconsolidated Greenwind's assets and liabilities and presents its interest in the joint venture based on the equity method of accounting. 1.4. 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 it 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 high complementarity between the participating companies will be leveraged, thus reducing costs resulting from the duplication and overlapping of operating and administrative structures. This reorganization was perfected by means of a merger through absorption process, under the terms of tax neutrality pursuant to articles 77 and following of the Income Tax Law, The Absorbing Company and the Absorbed Companies are currently performing the necessary procedures before the applicable entities in order to obtain the authorizations, registrations and recordings necessary for the Absorbing Company to operate as the continuing company in the merger. Notwithstanding that, in view of the need to request and obtain a large number of authorizations, registrations and recordings which must be granted by several national, provincial and municipal entities and the impossibility to obtain such approvals on a simultaneous basis, some absorbed companies will exceptionally continue operating and performing certain activities on behalf and at the expense of the Absorbing Company with the sole purpose of not hindering their course of business until all authorizations, registrations and recordings are finally obtained. 1.4.1. 2016 Reorganization: On August 10, 2016, the Company and Petrobras’ Board of Directors resolved to instruct both managements to initiate all necessary tasks and procedures to merge Pampa Energía, as acquiring company, with Petrobras, as acquired company Furthermore, the management of both companies considered it appropriate that under such merger, two Petrobras’ subsidiaries should be incorporated as absorbed companies: PEISA (95% through a direct interest and 5% through an indirect interest) and Albares (100% direct interest). The merger was effective as of November 1, 2016, date on which the transfer to the absorbing company of all the rights and obligations, assets and liabilities of Petrobras, PEISA and Albares became effective, all of which subject to the corresponding corporate approvals under the applicable law and the registration with the Registry of Commerce of the merger and the dissolution without liquidation of the absorbed companies. Pursuant to the PMC approved by the Board of Directors of the participating companies (i) each Petrobras’ minority shareholder will receive 0.5253 common shares of the Company with a face value of $ 1 each and each granting the right to one vote for each share it held before the merger. (ii) each minority holder of Petrobras’ ADRs will receive 0.2101 ADSs of the Company for each Petrobras’ ADR it held before the merger. As regards PEISA and Albares, as Petrobras holds 100% of the capital stock of such companies, no capital stock increase will be necessary and, consequently, there will be no exchange ratio for the shares of these companies. On February 16, 2017, the Extraordinary General Meetings of Shareholders approved the merger of Pampa Energía —as acquiring company— with Petrobras, PEISA and Albares —as acquired companies— in agreement with the terms of the PMC. On April 19, 2017, the final merger agreement was entered into. Once the exchange of shares is perfected, the Company will issue 101,873,741 common shares with a face value of $ 1 each and each granting the right to one vote and, after the merger through absorption is effected, the Company’s capital stock will be made up of 1,938,368,431 common shares. Pursuant to the provisions of Chapter X of the CNV provisions, the Company has filed a merger authorization proceeding before this entity and obtained from the CNV its authorization to publish the merger prospectus On February 26, 2018, the CNV notified the Company that, under the proceeding investigating the sale of Petrobras Argentina’s shares held by FGS-ANSES in the MTO, Federal Criminal and Correctional Court No. 11, Clerk’s Office No. 22, ordered it to refrain from adopting any measures and/or final resolution on the merits of the case without the prior approval by this Court, where the Company’s corporate reorganization case is being heard. It is worth highlighting that this proceeding does not deal with the merger but with the voluntary participation of shareholder FGS-ANSES in Petrobras Argentina's cash purchase offer under the MTO that the Company was forced to launch when it indirectly acquired 67.1933% of Petrobras Argentina's capital stock. The reorganization process took place after the MTO and was completely independent from it, and FGS-ANSES did not take part in it since, at that time, it was not a Petrobras Argentina’s shareholder. The delay in the registration of the merger directly affects approximately 6,250 domestic and foreign shareholders of Petrobras Argentina that are awaiting the share exchange which will take place after the registration of the merger. Therefore, the Company understands that the above-mentioned judicial proceeding is completely unrelated to the merger and has not exercised any influence on it, and will continue promoting the measures necessary to obtain the registration of the merger. 1.4.2. 2017 Reorganization: On June 26, 2017, the Board of Directors instructed the Company’s Management to start the proceedings allowing to evaluate the benefits of a merger through absorption process between the Company, as absorbing company, and certain companies of the group, as absorbed companies. On September 22, 2017, the Company’s Board of Directors informed that the companies which will take part in these merger will 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. Except for PEPASA, CTG, INNISA and INDISA, companies with third parties’ shareholding, there was no exchange ratio for the other companies subject-matter of the merger as the Company directly and/or indirectly held 100% of the capital stock of such companies. Since PEPASA and the Company’s assets are subject to the public offering system and listed in ByMA, the Board of Directors decided to propose to the Shareholders’ Meeting an exchange ratio based on the volume-weighted average price of the Company and PEPASA’s shares traded over the last six months, determined retroactively as from the Board meeting’s date on September 22, 2017, with a resulting exchange ratio of 2,2699 common shares with a face value of $ 1 each and each granting the right to one vote for each PEPASA common share in book-entry form with a face value of $ 1 and granting the right to one vote. Pursuant to the CPF approved on December, 21, 2017 by the Board of Directors of the participating companies (i) each PEPASA’ minority shareholder will receive 2,2699 common shares of the Company with a face value of $ 1 each and each granting the right to one vote for each share it held before the merger; (ii) each INNISA’ minority shareholder will receive 0,2644 common shares of the Company with a face value of $ 1 each and each granting the right to one vote for each share it held before the merger; (iii) each INDISA’ minority shareholder will receive 0,1832 common shares of the Company with a face value of $ 1 each and each granting the right to one vote for each share it held before the merger; (iv) each CTG’ minority shareholder will receive 0,6079 common shares of the Company with a face value of $ 1 each and each granting the right to one vote for each share it held before the merger. Once the exchange of shares is perfected, the Company will issue 144.322.083 common shares with a face value of $ 1 each and each granting the right to one vote and, after the merger through absorption is effected, the Company’s capital stock will be made up of 2.080.190.514 common shares. The Company has recognized the effects of this exchange under Shareholders’ Equity in the Consolidated Statement of Changes in Shareholders’ Equity. As of the issuance of these financial statements, the CNV’s authorization to the publication of the merger prospectus, the approval of the merger by each company’s shareholders’ meetings and the registration of the merger with the applicable controlling authorities are still pending. 1.4.3. Merger of Subsidiaries The merger's effective date detailed below 1.4.3.1. CTLL, EASA and IEASA On December 7 and 22, 2016, the Board of Directors of CTLL, EASA and IEASA resolved to initiate all necessary tasks and procedures for the merger through absorption among CTLL, as absorbing company, and EASA and IEASA, as absorbed companies. In analyzing this reorganization, EASA’s management concluded that, in order for the process to be viable, it was necessary to capitalize the debt EASA held with holders of Series A and B Discount Corporate Bonds issued on July 19, 2006 and maturing in 2021. On March 27, 2017 EASA’s Extraordinary General Meeting of Shareholders resolved to capitalize such CBs, which was accepted by PISA in its capacity as sole holder. Pursuant to Board Resolution No. 347 passed on August 11, 2017, the ENRE resolved, by a majority of votes, to reject the request for merger authorization submitted by EDENOR and EASA, and these companies appealed this resolution timely and in due form on considering that it did not conform to law. On December 26, 2017 EASA was served notice of MEyM Resolution No. 501 upholding the filed appeal, revoking ENRE’s Board of Directors’ Resolution No. 347 and sustaining the merger authorization request. On January 18, 2018, the shareholders’ meetings of the intervening companies approved the merger and on February 19, 2018, the merger final agreement was entered into. As of the issuance of these financial statements, the merger is pending registration with the Public Registry, to which effect the intervening companies are filing all applicable presentations with the corresponding bodies. 1.4.3.2. PACOSA and WEBSA On December 7, 2016, the Boards of Directors of PACOSA and WEBSA resolved to begin all necessary tasks and procedures for the merger through absorption between PACOSA, as absorbing company, and WEBSA as absorbed company. On March 7, 2017, the shareholders’ meetings of the intervening companies approved the merger, and on May 30, 2017 the merger final agreement was entered into. As of the issuance of these financial statements, the merger is pending registration with the Public Registry, to which effect the intervening companies are filing all applicable presentations with the corresponding bodies. 1.5. Assets classified as held for sale, related liabilities and discontinued operations 1.5.1. 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 closing of the transaction, which is subject to the meeting of certain conditions precedent, such as respective government approvals The assets subject-matter of the transaction are as follows: (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 is excluded from the sale, as well as the Company's investment in Refinería del Norte S.A. The transaction price comprises US $ 90 million in cash that includes the usual working capital of the business, which will be adjusted when the transaction is completed and an additional amount financed that will be determined at the close of the transaction, according to the methodology established in the contract. Pursuant to the foregoing, as of December 31, 2017, assets and liabilities subject to this transaction have been classified as held for sale, and the results for affected operations have been disclosed under “Discontinued Operations” in the consolidated statement of comprehensive income and in the consolidated statement of cash flows. As this business has been acquired through the acquisition of PPSL, financial information reflects the effect of consolidation from July 27, 2016 when de acquisition was consummated. it involved the recognition of an impairment of Intangible assets and Property, plant and equipment in the amount of $ 1.5.2. 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. The sale price amounts to US$ 360 million. The closing of the transaction is subject to the meeting of certain conditions precedent, including approval by shareholders meeting of Vista. The Company expects that it will represent earnings before taxes in the amount of approximately $ 1.400 million, which will be adjusted at the time of closing the transaction. Consequently, as of December 31, 2017, assets and liabilities subject to this transaction have been classified as held for sale, and the results for affected operations have been disclosed under “Discontinued Operations” in the consolidated Statement of comprehensive income and in the consolidated statement of cash flows. As this business has been acquired through the acquisition of PPSL, financial information reflects the effect of consolidation from July 27, 2016 when de acquisition was consummated. The consolidated statement of comprehensive income related to discontinued operations is presented below: As of December 31, 2017: Oil and gas Refining y distribution Eliminations Total Revenue 5,972 16,795 (6,890) 15,877 Cost of sales (4,840) (14,256) 6,906 (12,190) Gross profit 1,132 2,539 16 3,687 Selling expenses (182) (1,957) - (2,139) Administrative expenses (127) (80) - (207) Exploration expenses (19) - - (19) Other operating income 377 223 - 600 Other operating expenses (181) (110) - (291) Impairment of non current assets classified as held for sale - (687) - (687) Operating income (loss) 1,000 (72) 16 944 Finance income 22 15 - 37 Finance expenses - (16) - (16) Other financial results (239) (14) - (253) Financial results, net (217) (15) - (232) Income (loss) before income tax 783 (87) 16 712 - Income tax and minimum notional income tax (662) 44 - (618) Profit (loss) of the year for discontinued operations 121 (43) 16 94 Other comprehensive income Items that will not be reclassified to profit or loss Remeasurements related to defined benefit plans (7) 17 - 10 Income tax (174) (6) - (180) Items that may be reclassified to profit or loss - Exchange differences on translation 773 - - 773 Other comprehensive income of the year for discontinued operations 592 11 - 603 Total comprehensive income (loss) of the year for discontinued operations 713 (32) 16 697 Oil and gas Refining y distribution Eliminations Total Total income (loss) of the year for discontinued operations attributable to: Owners of the company 10 (43) 16 (17) Non - controlling interest 111 - - 111 121 (43) 16 94 Total comprehensive income (loss) of the year for discontinued operations attributable to: Owners of the company 282 (32) 16 266 Non - controlling interest 431 - - 431 713 (32) 16 697 As of December 31, 2016: Oil and gas Refining y distribution Eliminations Total Revenue 2,456 6,550 (2,821) 6,185 Cost of sales (1,941) (5,973) 2,931 (4,983) Gross profit 515 577 110 1,202 Selling expenses (63) (757) - (820) Administrative expenses (25) (23) - (48) Exploration expenses (41) - - (41) Other operating income 235 459 (377) 317 Other operating expenses (656) (98) 377 (377) Operating income (35) 158 110 233 Finance income 38 6 - 44 Finance expenses (10) (9) - (19) Other financial results (43) (40) - (83) Financial results, net (15) (43) - (58) Income (loss) before income tax (50) 115 110 175 Income tax and minimum notional income tax (24) (40) (39) (103) Profit (loss) of the year for discontinued operations (74) 75 71 72 Other comprehensive income Items that will not be reclassified to profit or loss Remeasurements related to defined benefit plans (62) 14 - (48) Income tax 22 (5) - 17 Items that may be reclassified to profit or loss - Exchange difference |
2. REGULATORY FRAMEWORK
2. REGULATORY FRAMEWORK | 12 Months Ended |
Dec. 31, 2017 | |
Regulatory Framework | |
REGULATORY FRAMEWORK | 2.1 Generation 2.1.1 Emergency in the National Electricity Sector On December 16, 2015, the National Government issued Executive Order No. 134/2015 declaring the state of emergency in the electrical sector until December 31, 2017 and instructing the MEyM to adopt the necessary measures applicable to the generation, transmission and distribution business in order to upgrade the quality and safety of the supply and to secure the provision of the electricity public service under proper economic and technical conditions. 2.1.2. 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 Resolutions No. 22/2016 and 19/2017); ii) sales contracts with large users within the MAT (Resolutions No. 1,281/2006 and No. 281/2017); and iii) supply agreements with CAMMESA (Resolutions No. 220/2007, 21/2016, 420/2017 and Renovar Programs). Furthermore, energy not committed under sales contracts with large users within the MAT and with CAMMESA will be remunerated at the Spot market. The Company’s generating units are detailed below: In operation: Generator Generating unit Tecnology Power Applicable regime CTG GUEMTG01 TG 101 MW Energy Plus Res. N° 1281/06 and SEE Resoluion N° 19/2017 (1) CTG GUEMTV11 TV ≤100 MW SE Resolutions No. 22/2016 and 19/2017 CTG GUEMTV12 TV ≤100 MW SE Resolutions No. 22/2016 and 19/2017 CTG GUEMTV13 TV >100 MW SE Resolutions No. 22/2016 and 19/2017 Piquirenda PIQIDI 01-10 MG 30 MW SE Resolution No. 220/2007 (1) CPB BBLATV29 TV >100 MW SE Resolutions No. 22/2016 and 19/2017 CPB BBLATV30 TV >100 MW SE Resolutions No. 22/2016 and 19/2017 CT Ing. White BBLMD01-06 MG 100 MW SEE Resolution No. 21/2016 (1) CTLL LDLATG01 TG >50 MW SE Resolutions No. 22/2016 and 19/2017 CTLL LDLATG02 TG >50 MW SE Resolutions No. 22/2016 and 19/2017 CTLL LDLATG03 TG >50 MW SE Resolutions No. 22/2016 and 19/2017 CTLL LDLATG04 TG 105 MW SEE Res. 220/2007 (75%), SEE Res. 22/2016 and 19/2017 (25%) CTLL LDLATG05 TG 105 MW SEE Resolution No. 21/2016 (1) CTLL LDLATV01 TV 180 MW SE Resolution No. 220/2007 (1) CTGEBA GEBATG01/TG02/TV01 CC >150 MW SE Resolutions No. 22/2016 and 19/2017 CTGEBA GEBATG03 TG 164 MW Energy Plus Res. N° 1281/06 HIDISA AGUA DEL TORO HI HI – Media 120<P≤300 SE Resolutions No. 22/2016 and 19/2017 HIDISA EL TIGRE HI Renewable ≤ 50 SE Resolutions No. 22/2016 and 19/2017 HIDISA LOS REYUNOS HI HI – Media 120<P≤300 SE Resolutions No. 22/2016 and 19/2017 HINISA NIHUIL I HI HI – Small 50<P≤120 SE Resolutions No. 22/2016 and 19/2017 (2) HINISA NIHUIL II HI HI – Small 50<P≤120 SE Resolutions No. 22/2016 and 19/2017 (2) HINISA NIHUIL III HI HI – Small 50<P≤120 SE Resolutions No. 22/2016 and 19/2017 (2) HPPL PPL1HI HI HI – Media 120<P≤300 SE Resolutions No. 22/2016 and 19/2017 HPPL PPL2HI HI HI – Media 120<P≤300 SE Resolutions No. 22/2016 and 19/2017 HPPL PPL3HI HI HI – Media 120<P≤300 SE Resolutions No. 22/2016 and 19/2017 Ecoenergía CERITV01 TV 15 MW Energy Plus Res. N° 1281/06 (1) CT Parque Pilar PILBD01-06 MG 100 MW SEE Resolution No. 21/2016 (1) (1) (2) In construction: Generator Generating unit Tecnology Applicable regime CTLL MG 15 MW SE Resolution No. 19/2017 Greenwind Wind 100 MW Renovar CTGEBA CC 383 MW Resolution No. 420/2017 2.1.3 Generation remuneration schemes 2.1.3.1. SE Resolution No. 22/2016 On March 22, 2013, the SE issued Resolution No. 95/13 introducing a new general-scope remuneration scheme superseding the applicable remuneration scheme previously in force for the whole electric generation activity, with the exception of power plants the energy and/or power capacity of which are sold under the Energy Plus modality and under supply agreements with CAMMESA. On March 30, 2016, the SE issued Resolution No. 22/2016, which provided for a retroactive updating —as from the economic transactions for the month of February, 2016— of the remuneration values for fixed costs, variable costs and maintenance remunerations. The remuneration scheme comprises the following items: i. Fixed Costs Remuneration: it considers and remunerates Power Capacity Made Available in power remuneration hours (HRP). The method for calculating the remuneration will be variable based on the Recorded Availability (“RA”) and the Historical Availability (“HA”), with prices ranging from US$84.3 to US$299.2/MW-hrp, depending on the technology and scale. ii. Variable Cost Remunerations: the calculation methodology will be based on the total power generated by each type of fuel, with prices ranging from $36.7 to $81.1MWh, depending on the technology, scale and type of fuel. iii. Additional Remuneration: part of this remuneration is settled directly to the generator and another part will be allocated to “new infrastructural projects in the electric sectors”, which will be defined by the SE through a trust. The SE established the trust funding mechanisms. The price was ranged from $5.9 to $84.2 MWh, depending on the technology, scale and destination. iv. Maintenance Remuneration: the methodology will be based on the total generated power. The remuneration is implemented through LVFVDs and was destined exclusively to the financing of major maintenance works, subject to the SE approval. The price will range from $16 to $45.1/MWh, depending on the technology and the scale. v. Incentives to “Production” and “Operating Efficiency”: they consist of an increase in the remuneration for variable costs upon the meeting of certain conditions. vi. 2015-2018 FONINVEMEM Resources: they consist of a specific contribution allocated to projects approved or to be approved by the SE under such regime. Specific contributions do not create acquired rights for the generator and, in case of breach of construction and/or supply agreements, they may be reassigned by the SE. Prices will range between $6.3 and $15.8/MWh, depending on the technology and scale. vii. 2015-2018 FONINVEMEM Direct Remuneration: it consists of the recognition of an additional remuneration for units installed under the 2015-2018 FONINVEMEM scheme equivalent to 50% of the Direct Additional Remuneration. The term for the recognition of such remuneration will begin with the unit’s commercial commissioning and extend for a term not exceeding 10 years. 2.1.3.2. SEE Resolution No. 19/2017: On February 2, 2017, the SEE issued Resolution No. 19/2017, which supersedes the remuneration scheme set forth by Resolution No. 22/2016 and establishes guidelines for the remuneration to generation plants as from the commercial transaction corresponding to February 1, 2017. The Resolution provides for remunerative items based on technology and scale, establishing US$-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, whereas the transaction’s maturity will be that provided for in CAMMESA’s procedures. 2.1.3.2.1. Remuneration for Available Power Capacity Thermal Power Generators The Resolution 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 the Energy Plus modality or under the WEM’s supply agreement with CAMMESA. Availability Commitments for each unit should be declared for a term of three years, together with information for the Summer Seasonal Programming (except for 2017, where information may be submitted within the term for the winter seasonal period), 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 US$3,050 to US$5,700/MW-month, depending on the technology and scale. The Base Remuneration applies to generators with availability commitments, with a price of US$ 6,000/MW-month during the May-October 2017 period, and US$ 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 US$ 1,000/MW-month between May and October, 2017, and to US$2,000/MW-month as from November 2017. Hydroelectric Generators In the case of hydroelectric power plants, a base remuneration and an additional remuneration for power capacity were established. 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 US$2,000 to US$8,000/MW-month, depending on the scale and type of power plant. Similarly to the provisions of Resolution No. 22/2016, in the 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 US$0 to US$500/MW-month between May and October 2017, and US$500 or US$1,000/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: i) the generator taking out insurance, to CAMMESA’s satisfaction, to cover for major incidents on critical equipment, and ii) 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. Other technologies The remuneration is made up of a base price of US$7.5/MWh and an additional price of US$17.5/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. 2.1.3.2.2 Remuneration for Generated and Operated Energy The remuneration for Generated Energy is applied on the real generation The remuneration for Operated Energy applies to the integration of hourly power capacities for the period, and is valued at US$2.0/MWh for any type of fuel. In the case of hydroelectric plants, prices for Generated and Operated Energy are remunerated 2.1.3.2.3 Additional Remuneration for Efficiency The “Efficiency” incentive 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. 2.1.3.2.4 Additional Remuneration for Low-Use Thermal Generators The Resolution provides for an additional remuneration for low-use thermal generators having frequent startups based on the monthly generated energy for a price of US$2.6/MWh multiplied by the usage/startup factor. The usage factor is based on the Rated Power Use Factor recorded during the last rolling year, which will have a 0.5 value for thermal units with a usage factor lower than 30% and a 1.0 value for units with a usage factor lower than 15%. In all other cases, the factor will equal 0. The startup factor is established based on startups recorded during the last rolling year for issues associated with the economic dispatch made by CAMMESA. It will have a 0.0 value for units with up to 74 startups, a 0.1 value for units recording between 75 and 149 startups, and a 0.2 value for units recording more than 150 startups. In all other cases, the factor will equal 0. 2.1.3.2.5 Repayment of Overhauls Financing (applicable to thermal and hydroelectric generators) The Resolution abrogates the Maintenance Remuneration and 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 US$1/MWh for the energy generated until the total cancellation of the financing. 2.1.4 Energy Plus - Resolution SE No. 1281/2006 With the purpose of encouraging new generation works, in 2006 the SE approved Resolution No. 1281/2006 establishing a specific regime which would allow newly installed generation sold to a certain category of Large Users to be remunerated 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: - Hydroelectric and thermal generators without fuel contracts are not allowed to execute any new contract. - LU300s will only be allowed to contract their energy demand in the MAT for the electrical consumption corresponding to 2005 (Base Demand) with the thermoelectric plants existing in the WEM. - New energy used by LU300s in excess of the Base Demand will be contracted at a price between the parties (Energy Plus). - New agents joining the system must contract a maximum 50% of their demand under the Energy Plus service. - New generation plants included within the Energy Plus service must have fuel supply and transportation contracts in place. Under this regime, the Company, through its power plants Central Térmica Güemes, EcoEnergía and Genelba, sells its energy and power capacity under the Energy Plus service to different large users within the WEM, which should support their plus demand under this scheme. The power capacity to be sold under this scheme amounts to 280 MW. If a generator cannot meet the power demand by an Energy Plus customer, it should purchase that power in the market at the operating marginal cost. The Company has Power Availability agreements in force with other generators, whereby it can purchase power from other generators to support its contracts in case of unavailability. In turn, the Company also acts as a selling party supporting other Energy Plus generators in case their equipment is unavailable. These agreements are ranked with a lower priority than Energy Plus contracts and relate to surplus energy (energy committed to the Energy Plus contracts but not demanded by clients). Lastly, both the energy delivered to the Spot market and the available power capacity not committed under effective Energy Plus agreements in each period will be remunerated pursuant to the provisions of Resolution No. 19/2017. 2.1.5 SE Resolution No. 220/2007 - WEM Supply Agreements (“Agreement Res.220”) Aiming to encourage new investments to increase the generation offer, the SE passed Resolution No. 220/2007, 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 subsidiaries CTP and CTLL power plants, has executed Agreement Res.220. On May 3, 2011, CTP was commissioned for service. On July 15, 2011, this company executed a Agreement Res.220 as from such date, totality of the power and produced energy generated is sold pursuant to the provisions of such agreement. On November 1, 2011, CAMMESA declared the commercial commissioning of CTLL’s Steam Turbine unit and the combined cycle started to operate on a commercial basis. Part of the totality By last, The economic impact as of the new remuneration amounted to $ 198 million, which was disclosed under Revenues from sales in the Statement of Comprehensive Income. 2.1.6 SE Resolution No. 21/2016 As a result of the state of emergency in the national electricity sector, the SEE issued Resolution No. 21/2016 calling for parties interested in offering new thermal power generation capacity with the commitment to making it available through the WEM for the following periods: i) 2016/2017 summer; ii) 2017 winter, and iii) 2017/2018 summer. The terms of the call were established in SE Note No. 161/2016. The conditions applicable to the generation capacity to be offered included the following: i) the plant should have a minimum 40 MW power capacity; ii) each generating unit should have a minimum 10 MW power capacity; and iii) the equipment should have dual fuel consumption capacity (with certain exceptions). 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. Power capacity surpluses are remunerated pursuant to SEE Resolution No. 19/2017. For further information on the projects conducted under this resolution, see Note 46. 2.1.7 SEE Resolution No. 420/2017 Pursuant to SEE Resolution No. 420/2017, SEE Resolution No. 287/2017 launched a call for bids to all parties interested in developing projects for co-generation and the closing to combined cycles over existing equipment, with no limits on the power capacity to be installed. 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). It is a condition that 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 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 power and the fuel cost (if offered), less penalties and fuel surpluses. Power capacity surpluses are remunerated pursuant to Resolution No. 19-E/2017. For further information on the projects conducted under this resolution, see Note 46. Additionally, the Act provides for several measures promoting 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. The tax benefits quota for 2016, set by Executive Order No. 882/2016, amounted to US$ 1,700 million. If it is not allocated in full, the balance will be automatically carried forward to the following year. Renovar Programs In order to meet the objectives set by Act No. 26,190 and Act No. 27.191, the MEyM called for open rounds for the hiring of electric power from renewable sources (RenovAr Programs, Rounds 1, 1.5 and 2). These calls aimed to assign power capacity contracts from different technologies (wind and solar energy, biomass, biogas and small hydraulic developments with a 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. For further information on the projects conducted under this resolution, see Note 46. SEE Resolution No. 281/2017 Renewable Energy Term Market The MEyM passed Resolution No. 281/2017, which regulated the Renewable MAT This regime aims to set the conditions for large users within the WEM and WEM distributing agents’ large users comprised within Section 9 of Act 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, it regulates the conditions applicable to projects for the generation, self-generation and co-generation of electric power from renewable sources. Specifically, the Registry of Renewable Electric Power Generation Projects (“RENPER”) was created for the registration of such projects. Projects destined to the supply of electric power from renewable sources under the Renewable MAT may be covered by other remuneration mechanisms, such as the agreements under the Renovar rounds. Surplus energy exceeding will be marketed under the Spot Market and remunerated pursuant to SEE Resolution No. 19-E/2017. Finally, the 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 Act 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. On January 29, 2018, the Company was assigned a 28 MW priority for the “de la Bahía” wind farm project and a 50 MW priority for the “Corti” wind farm project, which will allow it to guarantee the dispatch from both wind farms For further information on the projects conducted under this resolution, see Note 46. 2.2 Transmission On September 28, 2016, ENRE Resolution No. 524/16 approved the program applicable to the RTI for Electric Power Transmission during 2016, which contemplated the entry into force of the resulting tariff scheme as from February 2017. On December 26, 2016, Transener and Transba executed a new agreement with the SEE and the ENRE under the commitments stipulated in the Memorandum of Understanding for the Update of the High-Voltage Electric Power Transmission Utility, effective until January 31, 2017 or the entry into force of the new tariff scheme resulting from the RTI, whichever occurs first and under the commitments stipulated in the Memorandum of Understanding for the Update of the High-Voltage Electric Power Transmission Contract for Regional Distribution in the Province of Buenos Aires, effective until January 31, 2017 or the entry into force of the new tariff scheme resulting from the RTI, whichever occurs first. Pursuant to this agreement, and in order for Transener and Transba to have sufficient and necessary resources to support its ordinary operations and perform all other tasks necessary to secure the proper operation and functioning of the electric power transmission system under concession, the SEE (i) recognized credit claims in favor of Transener and Transba in the amount of $ 603 million and $ 152 million, respectively, on account of cost variations during the December 1, 2015-July 31, 2016 period, and (ii) determined credit claims for increased costs in favor of Transener in the amount of $ 900 million and $ 363 million, respectively, for the August 1, 2016-January 31, 2017 period. To such effects, on March 14, 2017, Transener executed with CAMMESA a Loan and Receivables Assignment Agreement, which was settled through the assignment of the above-mentioned recognized and ascertained credit claims. Additionally, the Agreement provided for an “Investment Plan” for the October 2016-March 2017 period in the approximate amount of $ 299 million and $ 121 million, respectively. On June 19, 2017, CAMMESA made its final disbursement under the Loan Agreement executed with Transener and Transba, thus offsetting all credits recognized under the Instrumental Agreement, the Renewal Agreement and its Addendum, as well as the Agreement executed on December 26, 2016. As of the closing of fiscal year 2017, Transener and Transba have recorded income resulting from the recognition of cost variations by the SEE and ENRE for up to the amounts collected through the executed Loan Agreements. Consequently, Transener has disclosed revenues from sales in the amount of $ 398 million and $ 1,062 million, and earned interest for $ 14 million and $ 105 million for the fiscal years ended on December 31, 2017 and 2016, respectively. Likewise, Transba has disclosed revenues from sales in the amount of $ 66 million and $ 452 million, and earned interest for $ 1 million and $ 22 million for the same fiscal years, respectively. Liabilities arising from disbursements collected up to the amount of the recognized credit claims for increased costs under the Instrumental Agreement and the Renewal Agreement have been settled through the assignment of such credit claims. Pursuant to Resolution No. 524/2016, which establishes the program applicable to the RTI for Electric Power Transmission during 2016, on January 31, 2017, the ENRE issued Resolutions No. 66/17 and No. 73/17, which set the tariffs in force for the 2017/2021 five-year period, which resulted in an annual amount of $3,274 million and $1,499 million at the exchange rate effective as of February 2017 for Transener and Transba, respectively. These resolutions provide for an investment plan for the 2017/2021 five-year period in the amounts of $3,336 million and $2,251 million for Transener and Transba, respectively. Furthermore, the ENRE established the mechanism for adjusting the remuneration, the service quality and penalties system, the reward system and the investment plan to be executed by both companies during such period. Due to the differences among the several tariff proposals submitted under the Full Tariff Review process initiated by the ENRE, on April 7 and 21, 2017, Transener and Transba, respectively, filed a Motion for Reconsideration and Appeal against ENRE Resolutions No. 66/2017, 84/2017, 139/2017, 73/17, 88/17 and 138/17, whereby the ENRE approved the tariff system applicable to Transener and Transba, respectively, for the 2017/2021 period. On October 31, 2017, ENRE Resolutions No. 516/2017 and 517/17 were notified, whereby the ENRE partially upheld the Motions for Reconsideration filed against ENRE Resolutions No. 66/17 and 73/17 by Transener and Transba S.A., respectively. These resolutions provide for a new tariff scheme applicable to Transener and Transba retroactively to February 2017, with annual regulated revenues in the amount of $ 3,534 million and $1,604 million, respectively. On December 15, 2017, the ENRE issued Resolutions No. 627/17 and No. 628/17 establishing a new tariff scheme resulting from the tariff update defined by the RTI and effective as from August 2017, with Transener and Transba’s annual regulated revenues amounting to $ 3,933 million and $ 1,771 million, respectively. 2.3 Energy distribution 2.3.1. General Edenor is subject to the regulatory framework provided under Law No. 24,065, the Concession Agreement, and the regulations issued by the ENRE. The ENRE is empowered to approve and control tariffs, and 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 Concession Agreement. The Distribution Company’s obligations are, among others, to make the necessary investments and carry out the necessary maintenance works in order to ensure that the quality levels established for the provision of the service in the concession area will be complied with and that electricity supply and availability will be sufficient to meet the demand in due time, securing the sources of supply. If Edenor repeatedly fails to comply with the obligations assumed in the Concession Agreement, the grantor of the concession will be entitled to foreclose on the collateral granted by the majority shareholders by means of the pledge of the Class A shares and sell them in a Public Bid. This, however, will not affect the continuity of the Holder of the concession. Furthermore, the Concession Agreement may be rescinded in the event of the Distribution Company’s undergoing bankruptcy proceedings. Additionally, if the Grantor of the Concession fails to discharge his obligations in such a manner that the Distribution Company is prevented from providing the Service or the Service is severely affected on a permanent basis, the Distribution Company may request, after demanding the regularization of such situation in a term of 90 days, that the agreement be rescinded. At the date of issuance of these financial statements, there have been no events of non-compliance by Edenor that could be regarded as included within the scope of this situation. 2.3.2 Electricity rate situation 2.3.2.1. Adjustment Agreement entered into between Edenor S.A. and the Federal Government On September 21, 2005, Edenor S.A. entered into an Adjustment Agreement within the framework of the process of renegotiation of the Concession Agreement set forth in Law No. 25,561 and supplementary regulations, which was ratified on February 13, 2006. The Adjustment Agreement provides for the following: i) the implementation of a Temporary Tariff Structure effective as from November 1, 2005, including a 23% average increase in the distribution margin, which may not result in an increase in the average rate of more than 15%, and an additional 5% average increase in the VAD, allocated to certain specified capital expenditures; ii) the requirement that during the term of said temporary tariff structure, dividend payment be subject to the approval of the regulatory authority; iii) the establishment of a “Social Tariff” for the needy and the levels of quality of the service to be rendered; iv) the suspension of the claims and legal actions filed by Edenor and its shareholders in national or foreign courts due to the effects caused by the Economic Emergency Law; v) the carrying out of an RTI which will result in a new tariff structure that will go into effect on a gradual basis and remain in effect for the following 5 years. In accordance with the provisions of Law No. 24,065, the ENRE will be in charge of such review; vi) the implementation of a minimum investment plan in the electric network for an amount of $ 178.8 million to be fulfilled by Edenor during 2006, plus an additional investment of $ 25.5 million should it be required; vii) the adjustment of the penalties imposed by the ENRE that are payable to customers by way of discounts, which were notified by such regulatory agency prior to January 6, 2002 as well as of those that have been notified, or whose cause or origin has arisen in the period between January 6, 2002 and the date on which the Adjustment Agreement goes into effect through the date on which they are effectively paid, using, for such purpose, the average increase recorded in the Company’s own distribution costs as a result of the increases and adjustments granted at each date; viii) the waiver of the penalties imposed by the ENRE that are payable to the Federal Government, which have been notified, or their cause or origin has arisen in the period between January 6, 2002 and the date on which the Adjustment Agreement goes into effect; The payment term of the penalties imposed by the ENRE, which are described in paragraph vii) above, is 180 days after the approval of the RTI in 14 semiannual installments. Those discounts have been early made as from December 2015. Said agreement was ratified by the PEN by means of Executive Order No. 1,957/06, signed by the President of Argentina on December 28, 2006 and published in the Official Gazette on January 8, 2007. The aforementioned agreement stipulated the terms and conditions that, upon compliance with the other procedures required by the regulations, would be the fundamental basis of the Comprehensive Renegotiation |
3. BASIS OF PRESENTATION
3. BASIS OF PRESENTATION | 12 Months Ended |
Dec. 31, 2017 | |
Basis Of Presentation | |
BASIS OF PRESENTATION | 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 8, 2018. Significant accounting policies adopted in the preparation of these financial statements are described in Note 4, which have been consistently applied in these financial statements. These accounting policies have been applied consistently by all Group companies. Comparative information Certain reclassifications have been made to those financial statements to keep the consistency in the presentation with the amounts of the current year. The recognition of income – provisional remedies –CAMMESA Note MEyM No. 2016-0448473, the income recognition on account of the RTI - SE Resolution No. 32/15 and the higher costs recognition - SE Resolution No. 250/13 and subsequent Notes, for a total amount of $ 1,627 million and $ 5,576 million, for 2016 and 2015, respectively, are shown under Other operating income. T The results of operations with non-controlling interests not representing a loss of control and reserves for stock-based compensation plans are disclosed under “Other reserves”, rather than under “Share premium and other reserves” as previously disclosed. T As a result of the divestments mentioned in Note 1.5, the Company has classified certain assets from Refining and Distribution and Oil and Gas segments as held for sale, classifying their results and cash flows as discontinued operations. |
4. ACCOUNTING POLICIES
4. ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies | |
ACCOUNTING POLICIES | The main accounting policies used in the preparation of these financial statements are explained below. Unless otherwise stated, these accounting policies have been consistently applied in all the years presented. 4.1 New accounting standards, amendments and interpretations issued by the IASB effective as of December 31, 2017 and adopted by the Company The Group has applied the following standards and/or amendments for the first time for their annual reporting period commencing January 1, 2017 - Amendments to IAS 7 "Statement of cash flows", - Amendments to IAS 12 “Income taxes”, y - Amendments to IFRS 12 “Disclosures of interests in other entities” (within improvements to IFRSs – 2014-2016 Cycle) The adoption of these modifications did not have any impact on the Company’s operating results or financial position. Additional information is disclosed in Notes 6 and 20 as a result of the application of disclosure requirements on changes in liabilities arising from financing activities and the clarification of the scope of the standard related to entity’s interest classified as held for sale in accordance with IFRS 5 was considered in Note 1, as a result, summarised financial information was not disclosed as it is not required. 4.2 New accounting standards, amendments and interpretations issued by the IASB which are not yet effective and have not been early adopted by the Company - IFRS 15 “Revenue from Contracts with Customers", issued in May 2014 and later in September 2015, effected date was amended for applying to annual period beginning on or after January 1, 2018. The standard addresses the principles for recognizing revenues and establishes the requirements for reporting about the nature, amount, timing an uncertainty of revenue and cash flows arising from contracts with customers. The basic principle implies the recognition of revenue that represent the transfer of goods or services to customers at an amount that reflects the consideration the entity expects to be entitled in exchange for those goods or services. The Company will elect to apply IFRS 15 only to contracts that are not completed at the date of initial application, recognizing the cumulative effect of the application as an adjustment to the opening balance of retained earnings as of January 1, 2018. Management has assessed the effects of applying IFRS 15 on the group’s financial statements regarding not completed contracts as of January 1, 2018. As a result of this assessment, the Company has not identified any differences associated with performance obligations identification or price allocation methodology which could affect the timing of future revenue recognition forward. Finally, no contract assets or contract liabilities to be separately presented under IFRS 15 have been identified. - IFRS 9 “Financial Instruments”: was amended in July 2014. This amended version covers all the phases of the IASB project to replace IAS 39 “Financial Instruments: Recognition and Measurement”. These phases are the classification and measurement of instruments, impairment and hedging. This version adds a new impairment model based on expected losses and some minor modifications to the classification and measurement of financial assets. This new version supersedes all previous versions of IFRS 9 and is effective for periods starting as from January 1, 2018. The Company has adopted the first phase of IFRS 9 as of the transition date. The Company will apply IFRS 9 amended retrospectively from January 1, 2018 with the practical expedients permitted under the standard, and comparative periods will not be restated. Pampa has reviewed its financial assets currently measured and classified at fair value through profit and loss or at amortized cost and has concluded that satisfy conditions to maintain classification; hence, IFRS 9’s modifications are not expected to affect the classification and measurement of financial assets. Regarding the new hedge accounting model which, in general terms, allows more hedge relationships might be eligible for hedge accounting, in order to align the accounting with the related risk management practices, Pampa has not opted for the designation of any hedge relationships as of the issuance of these financial statements and it does not expect to make such designation; consequently, it does not expect any modifications resulting from the application of IFRS 9. As regards the new impairment model based on expected credit losses rather than incurred credit losses, based on the assessments conducted as of the issuance of these financial statements, Pampa expects an approximate 13% increase in the allowances for trade receivables and for other receivables - IFRS 16 “Leases”: issued in January 2016 and replaces the current guidance in IAS 17. It defines a lease as a contract, or part of a contract, that conveys the right to use an asset (the underlying asset) for a period of time in exchange for consideration. Under this standard, lessees have to recognize a lease liability reflecting future lease payments and a ‘right-of-use asset’ for lease contracts. This is a significant change compared to IAS 17 under which lessees were required to make a distinction between a finance lease (on balance sheet) and an operating lease (off balance sheet). IFRS 16 contains an optional exemption for lessees in case of short-term leases and leases for which the underlying asset is of low value assets. The IFRS 16 is effective for annual periods beginning on or after 1 January 2019. The Company is currently analyzing the impact of its application. - IFRS 2 “Share based payments”: amended in June 2016 to clarify the measurement basis for cash-settled share-based payments and the accounting for modifications that change an award from cash-settled to equity-settled. It also introduces an exception to IFRS 2 principles by requiring an award to be treated as if it was wholly equity-settled, where an employer is obliged to withhold an amount for the employee’s tax obligation associated with a share-based payment and pay that amount to the tax authority. It is effective for annual periods beginning on or after January 1, 2018. The Company estimates that these amendments will not have an impact on the Company’s operating results or financial position. - IFRIC 22 “Foreign Currency Transactions and Advance Consideration”: issued in December 2016. The interpretation addresses how to determine the date of the transaction for the purpose of determining the exchange rate to use on initial recognition of the related asset, expense or income related to an entity that has received or paid an advance consideration in a foreign currency. The date of the transaction is the date on which an entity initially recognizes the non-monetary asset or non-monetary liability arising from the payment or receipt of advance consideration. It is effective for annual periods beginning on January 1, 2018. The Company estimates that this interpretation will not have an impact on the Company’s operating results or financial position. - Improvements to IFRSs – 2014-2016 Cycle: amendments issued in December 2016 that are effective for periods beginning on or after January 1, 2018. The Company estimates that these amendments will not have an impact on the Company’s operating results or financial position. - - - IFRS 9 "Financial instruments": application guidance modified in October 2017, in relation to the classification of financial assets in the case of contractual terms that change the timing or amount of contractual cash flows to determine whether the cash flows that could arise due to that contractual term are solely payments of principal and interest on the principal amount. It is effective for annual periods beginning on or after January 1, 2019, early adoption is permitted. The Company is analyzing the impact of its application, however, it estimates that it will not have any impact on the Company´s results of operations or financial position. - IAS 28 "Investments in associates and joint ventures": amended in October 2017. Clarifies IFRS 9 applies to other financial instruments in an associate or joint venture to which the equity method is not applied. It is applicable to annual periods beginning on or after January 1, 2019, early adoption is permitted. The Company is analyzing the impact of its application, however, it estimates that it will not any impact on the Company’s results of operations or financial position. - Improvements to IFRSs – 2015-2017 Cycle: amendments issued in December 2017 that are effective for periods beginning on or after January 1, 2019. The Company estimates that these amendments will not have an impact on the Company’s operating results or financial position. 4.3 Principles of consolidation and equity accounting 4.3.1 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. They are deconsolidated from the date that control ceases. The acquisition method of accounting is used to account for business combinations by the group (see Note 4.3.5 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 where necessary to ensure consistency with the policies adopted by the Group. Since the functional currency of some subsidiaries is different from the functional currency of the Company, exchange gains or losses arise from intercompany operations. Those exchange results are included in “Financial results” in the Consolidated Statement of Comprehensive Income. 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. 4.3.2 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 4.3.4 below), after initially being recognized at cost. 4.3.3. Joint arrangements Under IFRS 11 “ Joint Arrangements” Joint operations The Company recognizes its direct right to the assets, liabilities, revenues and expenses of joint operations and its share of any jointly held or incurred assets, liabilities, revenues and expenses. These have been incorporated in the financial statements under the appropriate headings. Joint ventures Interests in joint ventures are accounted for using the equity method (see Note 4.3.4 below), after initially being recognized at cost in the Consolidated Statement of Financial Position. 4.3.4. 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 4.8. 4.3.5 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 either at fair value or 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. 4.3.6. 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. 4.4 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. In the aggregation of segments, the Company has primarily considered the nature of the regulatory framework of the Energy Industry in Argentina and product integration in the Company’s production process. 4.5 Property, plant and equipment Property, Plant and Equipment is measured following the cost model. It is recognized at 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. The depreciation methods and periods used by the group are described below. 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 proceeds with the carrying amount. 4.5.1 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 The depreciation method is reviewed, and adjusted if appropriate, at the end of each year. 4.6 Intangible assets 4.6.1 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 the purpose of impairment testing, goodwill acquired in a business combination is allocated from the acquisition date to each of the acquirer’s cash-generating units 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. 4.6.2 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 and are amortized following the straight-line method based on each asset’s useful life, which corresponds to the life of each concession agreement. The concession agreement of Edenor, has a remaining life of 71 years, while the HIDISA and HINISA has a life of 22 years. 4.6.3 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 and 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. As of December 31, 2016, corresponds to the commercial contracts identified in the Refining and distribution segment with an average useful life of five years based, among other factors, on contractual agreements, consumer behavior and economic factors related to companies Combined. 4.7 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. According to the successful efforts method of accounting, exploration 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. The initial estimated asset retirement obligations in hydrocarbons areas, 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. 4.8 Impairment of non-financial 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. Other 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 (cash generating units or CGUs). Non-financial assets, other than goodwill, that have been impaired are reviewed for possible reversal of the impairment at the end of each reporting period. 4.9 Foreign currency translation 4.9.1 Functional and presentation currency Information included in the financial statements is measured in the functional and presentation currency of the Company, which is the currency of the primary economic environment in which the entity operates. The functional currency is Argentine peso, which is the Group’s presentation currency. IAS 29 "Financial reporting in hyperinflationary economies" requires for financial statements of an entity whose functional currency is the currency of a hyperinflationary economy, whether they are based on a historical cost approach or a current cost approach, to be stated in terms of the measuring unit current at the end of the reporting year. In general terms, by applying to non-monetary items the change in a general price index from the date of acquisition or the date of revaluation, as appropriate, to the end of the reporting period. In order to conclude about the existence of a hyperinflationary economy, the standard mentions certain indications to consider including a cumulative rate of inflation in three years that approaches or exceeds 100%. Despite the high inflation rates in Argentina, in recent years, considering that the INDEC WPI official publication was suspended from November to December 2015; the existence of other qualitative and quantitative indicators, such as the program established by the Argentine Central Bank to foster monetary stability aiming to induce a systematic and sustainable low inflation rate; and that the market has evidenced a downard trend in inflation rates during 2017, there is not enough evidence to conclude Argentina qualifies as a hyperinflationary economy pursuant to the criteria set forth in IAS 29 and accordingly, we have not restated financial information. Although the conditions necessary to qualify Argentine economy as hyperinflationary in accordance with the provisions of IAS 29 have not been met, and considering professional and regulatory limitations for the preparation of adjusted financial statements as of December 31, 2017, certain macroeconomic variables affecting the Company's business, such as wage costs and purchase prices, have experienced significant annual variations, and as a result should be considered in the evaluation and interpretation of the financial position and results presented by the Company in these financial statements. 4.9.2 Transaction and balances Foreign currency transactions are translated into the functional currency using the exchange rates as of at the date of the transaction. Foreign exchange gain and loss resulting from the settlement of any transaction and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the income statement, unless they have been capitalized. The exchange rates used are as follows: buying rate for monetary assets, selling rate for monetary liabilities, average rate at the end of the year for balances with related parties, and transactional exchange rate for foreign currency transactions. 4.9.3 Group companies Results and financial position of subsidiaries and associates that have a different functional currency from the presentation currency are translated into the presentation currency as follows: - assets and liabilities are translated using the closing exchange rate; - gains and losses are translated using the exchange rates prevailing at the date of the transactions. The results from the remeasurement process into the functional currency are recorded in line “Financial results” of the Consolidated Statement of Income. The results from the remeasurement process into the functional currency to presentation currency transactions are recognized in “Other Comprehensive Income”. When an investment is sold or disposed of, in whole or in part, the related differences are recognized in the Consolidated Statement of Income as part of the gain/loss on the sale or disposal. 4.10 . Financial assets 4.10.1 Classification 4.10.1.1 Financial assets at amortized cost Financial assets are classified and measured at amortized cost only if the following criteria have been met: i. the objective of the Group’s business model is to hold the asset to collect the contractual cash flows; ii. the contractual terms, on specified dates, have cash flows that are solely payments of principal and interest on the outstanding principal. 4.10.1.2 Financial assets at fair value If any of the above mentioned criteria has not been met, the financial asset is classified and measured at fair value through profit or loss. All equity investments are measured at fair value. For equity investments that are not held for trading, the Group can irrevocably choose at the moment of the initial recognition to present changes in fair value through other comprehensive income. The decision of the Group was recognizing changes in fair value through profit or loss. 4.10.2 Recognition and 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 recognized in profit or loss. A gain or loss on a debt investment that is subsequently measured at amortized cost and is not part of a hedging relationship is recognized in profit or loss when the financial asset is derecognized or impaired and through the amortization process using the effective interest rate method. The Group subsequently measures all equity investments at fair value. When the Group elects to present the changes in fair value in other comprehensive income, such changes cannot be reclassified to profit or loss. Dividends from such investments continue to be recognized in profit or loss as long as they represent a return on investment. The Company reclassifies financial assets if and only if its business model to manage financial assets is changed. 4.10.3 Impairment of financial assets Financial assets at amortized cost The Company assesses at each reporting date whether there is objective evidence that a financial asset or group of financial assets is impaired and if so, an impairment charge is recorded in the income statement. The amount of the impairment loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows (excluding future credit losses that have not been incurred) discounted at the financial asset’s original effective interest rate. If the financial asset has a variable interest rate, the discount rate for the calculation of the impairment loss is the currently effective interest rate under the contract. As a practical expedient, the Group may measure impairment on the basis of an instrument’s fair value using an observable market price. If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognized, the reversal of the previously recognized impai |
5. CRITICAL ACCOUNTING ESTIMATE
5. CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS | 12 Months Ended |
Dec. 31, 2017 | |
Critical Accounting Estimates And Judgments | |
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: 5.1 Impairment of non-financial assets Non-financial assets, including identifiable intangible assets, are reviewed for impairment at the lowest level for which there are separately identifiable cash flows (CGU). For this purpose, each asset 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, the regulatory framework for the energy industry (mainly the RTI / CMM and recognition of expected prices), 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 that these units will generate. The Company Management uses approved budgets up to one year as the base for cash flow projections that are latter extrapolated into a term consistent with the assets’ remaining useful life, taking into consideration the appropriate discount rates. Discount rates used to discount future net cash flows is 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 to sale, the Company Management uses the estimated value of the future cash flows that a market participant could generate from the appropriate CGU, and deducts 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. 5.1.1 Impairment of property, plant and equipment and intangible assets associated with the subsidiary Edenor As of December 31, 2011, the Company has recorded impairment losses for property, plant and equipment and intangible assets associated with its investment in Edenor resulting from the assessment of their recoverable value. Depreciation losses totaled up $ 648 million before income tax. As of the date of issuance of these financial statements, Pampa has assessed all factors included in IAS 36 and considers that the effective implementation of the comprehensive tariff review process that implied increases in the applicable rates by Edenor during 2017 represents an indication that the impairment losses recognized in prior years may no longer exist. For this reason, Edenor has prepared its projections for the sole purpose of analyzing the recoverability of the impairment recorded by the Company Cash flows are prepared on the basis of estimates concerning the future performance of certain variables that are sensitive to the determination of the recoverable amount, measured as the value in use, among which the following can be noted: (i) nature, opportunity and modality of electricity rate increases and/or cost adjustment recognition; (ii) demand for electricity projections; (iii) evolution of the costs to be incurred; (iv) investment needs in accordance with the service quality levels required by the regulatory authority, and (v) macroeconomic variables, such as growth rates, inflation rates and foreign currency exchange rates. Edenor has elaborated its projections as from the implementation of ENRE Resolution No. 63/17, which established the new tariff schemes applicable as from February 1, 2017, that fixed Edenor's remuneration and the tariff adjustment mechanism for the next 5 years (Note 2.3). Given that the main variable is the electricity rate, and such rate is supported by the approved electricity rate schedule, Edenor has prepared only one scenario, considering the most pessimistic situation when estimating the variables with greater impact (Resolution of regulatory matters) and its best estimate for the other variables with lower incidence. In order to determine the scenario mentioned in the preceding paragraph, Edenor has considered the following: i. Nature, opportunity, and modality of electricity rate increases and / or cost adjustments recognition: Electricity rate increases as resolved in the RTI process; ii. Settlement of regulatory liabilities: Edenor has considered to use the final surplus of its annual cash flows until these liabilities are settled; iii. Electricity demand growth: 3% per year; iv. Development of costs to be incurred: mainly based on the expected level of inflation; v. Investments for infrastructure maintenance: in accordance with the service quality levels required by the regulator in the RTI; vi. Inflation rate; vii. Exchange rate. viii. The discount rate (WACC) in pesos varies for each year of the projection. For the first 5 years, the average of these rates is 23%. As a result of the gradual restructuring of Edenor's economic-financial situation detailed in Note 41, the Company has reversed the impairment losses recognized in previous years and has recorded a gain of $ 461 million in property, plant and equipment net of depreciation expense and a gain of $ 82 million in intangible assets, net of depreciation expense, before income tax. 5.1.2 Impairment of goodwill As a result of the acquisition of PPSL, the Company has recognized a goodwill of $ 994 million that has been allocated, for the purpose of impairment testing, to the oil and gas business segment regarding future synergies of combined business and assembled workforce. For the purpose to determine the value in use of the segment, the Company prepared the cash flows on the basis of estimates concerning proved oil and gas reserves (developed and to be developed) and probable reserves, according to the reports of oil and gas reserves prepared by the Company and the projection period was determined based on the end of the respective concession contracts. In addition, the Company has made estimates concerning the future performance of certain variables that are sensitive to the determination of the recoverable amount, among which are: (i) reserve levels and production; (ii) sales price evolution; (iii) operating costs evolution; (iv) investment needs and; (V) macroeconomic variables such as inflation rates, foreign currency exchange rate. The WACC discount rate in U.S. dollars used amounted to 10.8% As a result of the oil and gas business segment impairment test, the Company concluded that the assets in the oil and gas segment, considered as a whole do not exceed the recoverable value, measured as the value in use as of December 31, 2017. 5.2 Current and deferred Income tax / Minimum notional income tax The Company Management has to regularly assess the positions stated in the tax returns as regards those situations where the applicable tax regulations are subject to interpretation and, if necessary, establish provisions according to the estimated amount that the Company will have to pay to the tax authorities. When the final tax result of these items differs from the amounts initially acknowledged, those differences will have an effect on the income tax and on the deferred tax provisions in the fiscal year when such determination is made. There are many transactions and calculations for which the ultimate tax determination is uncertain. The Company recognizes liabilities for eventual tax claims based on estimates of whether additional taxes will be due in the future. 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. Deferred tax assets and liabilities are not discounted. In assessing the realization of deferred tax assets, Management considers that 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. As a result of the recoverability analysis performed, as of December 31, 2016, the Company and certain subsidiaries have derecognized the liability related to the application of the provisions of the “Hermitage” decision to the determination of the minimum notional income tax liability. This has been applied to all periods in which the Company had evidenced tax losses, and resulted in the recognition of income for $ 123 and $ 88 million disclosed under the lines “Income tax and minimum notional income tax” and “Financial expense” within the Consolidated Statement of Comprehensive of Income / (Loss), respectively, as the tax credit had not been previously recognized. To such effect, the Company has used the following grounds: a) several previous cases within the Group where Courts has ruled in favor of the Company’s allegation according to the criterion established by the “Hermitage” decision; b) the completion of tax audits for periods in which certain subsidiaries of the Group have applied the criterion established by the “Hermitage” ruling; c) and lastly, the abrogation of the tax pursuant to Section 76 of Act No. 27,260 (Tax Transparency) for fiscal years beginning as from January 1, 2019, which evidences the Treasury's position on the continuation of proceedings as the one brought against the Company. Additionally, the Company has recognized an income of $ 23 million for the recognition of the tax credit for minimum notional income tax paid in previous years. The Company considers it is probable that it will generate future taxable income to use this tax credits within the statutory limitation period, as a result of corporate reorganizations described. 5.3 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 4.24, for which elaborates the estimates mainly with the assistance of legal advisors, based on information available to the Management at 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 to the ultimate resolution of each contingency, which will be included in the provision if they may be reasonably estimated. However, if the Company´s Management estimates are not correct, current provisions might be inadequate and could have an adverse effect on the Company’s results of operations, financial position and cash flows. 5.4 Asset retirement obligations Asset retirement obligations 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. 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 when it is justified by changes in the evaluation criteria or at least once a year. 5.5 Allowance for doubtful accounts The Group is exposed to losses for uncollectible receivables. The Company Management estimates the final collectability of the accounts receivable. The allowance for doubtful accounts is assessed based on the historical level of both the balances written off as an expense and the default balances. In the case of the distribution of energy segment, a delinquent balance comprises all such debt arising from the bills for electricity consumption that remain unpaid 7 working days after their due dates for small-demand (tariff 1) customers, for medium and large-demand (tariff 2 and 3) customers. Edenor´s Management records an allowance applying an uncollectibility rate for each customer category, based on the historical comparison of collections made against the default balances of each customer category. In order to estimate collections related to the energy generation segment we mainly consider the ability of CAMMESA to meet its payment obligations to generators, and the resolutions issued by SE, which allow the Company to collect its credits with CAMMESA through different mechanisms. Additionally, Management analyzes the allowance for uncollectible receivables of the remaining accounts receivables of the segment based on an individual analysis of recoverability of receivables of the WEM debtors. Future adjustments to the allowance may be necessary if future economic conditions differ substantially from the assumptions used in the assessment for each year. 5.6 Actuarial assumptions in defined benefit plans Actuarial 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 pension plan obligations depends on multiple factors that are determined according to actuarial estimates which are revised annually by an independent actuary, 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. 5.7 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 management best estimate of the expenditure required to settle the present obligation at the date of these 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 Edenor’s estimate of the outcome of the RTI process described in Note 2.3. 5.8 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). 5.9 Oil and gas reserves Reserves mean 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. Reserve estimates are adjusted when so justified by changes in the evaluation criteria or at least once a year. These reserve estimates are based on the reports of oil and gas consulting professionals. The Company uses the information obtained from the calculation of reserves in the determination of depreciation of assets used in the areas of oil and gas, as well as assessing the recoverability of these assets (Notes 4.7 and 4.8). 5.10 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. 5.11 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 the i) income approach, through indirect cash flows (net present value of expected future cash flows) or through the multi-period excess earnings method, ii) cost approach (replacement value of the good adjusted for loss due to physical deterioration, functional and economic obsolescence) and iii) 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. FINANCIAL RISK MANAGEMENT
6. FINANCIAL RISK MANAGEMENT | 12 Months Ended |
Dec. 31, 2017 | |
Financial Risk Management | |
FINANCIAL RISK MANAGEMENT | 6.1 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 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. 6.1.1 Market risks Foreign exchange risk The Company’s financial situation and the results of its operations are sensitive to variations in the exchange rate between the Argentine peso and other currencies, primarily with respect to U.S. dollar. In some cases, the Company may use derivative financial instruments to mitigate associated exchange rate risks. The Company collects a meaningful portion of its revenues in Argentine pesos pursuant to prices which are indexed to the U.S. dollar, mainly revenues resulting from: i) the sale of energy (Supply Agreements under ES Resolution No. 220/07, Energy Plus contracts and generators’ revenues under ES Resolution No. 19-E/17) and ii) the sale of gas and crude oil. Furthermore, a significant portion of the Company’s financial debt (approximately 85%) is denominated in U.S. dollars, against a 66% at the closing of the previous fiscal year. It should be pointed out that this increase is mainly due to the issuance of Class 1 Corporate Bonds during January 2017. Additionally, the Company has made several investment commitments, mainly projects to increase its thermal generation capacity and projects for the generation of energy from renewable sources, most of which are denominated in foreign currency, which exposes the Company to a risk of loss resulting from the devaluation of the Argentine peso. 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 that currency, which exposes the Company 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 end of 2017 year, Edenor has not hedged its exposure to the US 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 2017, U.S. Dollar currency appreciated by approximately 18%. The following table shows the Company’s exposure to the exchange rate risk for financial assets and liabilities denominated in a currency different from the Company’s functional currency. Type Amount of foreign currency Exchange rate (1) Total Total ASSETS NON CURRENT ASSETS Financial instruments Financial assets at amortized cost Third parties US$ - - - 1 Other receivables Related parties US$ 42.4 18.599 789 733 Third parties US$ 62.7 18.549 1,163 934 Financial assets at fair value through profit and loss Third parties US$ - - - 513 Total non current assets 1,952 2,181 CURRENT ASSETS Financial instruments Financial assets at fair value through profit and loss Third parties US$ 263.0 18.549 4,879 678 Derivative financial instruments Third parties US$ 0.2 18.549 4 - Trade and other receivables Related parties US$ 10.2 18.599 189 106 Third parties US$ 246.0 18.549 4,563 4,464 EUR - - - 1 VEF - - - 2 Cash and cash equivalents US$ 21.8 18.549 404 1,087 EUR 0.3 22.283 7 2 Total current assets 10,046 6,340 Non Financial instruments Non current assets classified as held for sale US$ 39.0 18.549 723 19 Total assets 12,721 8,540 Type Amount of foreign currency Exchange rate (1) Total Total LIABILITIES NON CURRENT LIABILITIES Financial instruments Trade and other payables Third parties US$ 6.7 18.649 125 - Borrowings Related parties US$ 0.8 18.599 14 16 Third parties US$ 1,737.5 18.649 32,403 11,737 Non financial instruments Provisions Related parties US$ - - - 366 Third parties US$ 89.1 18.649 1,662 2,378 Total non current liabilities 34,204 14,497 CURRENT LIABILITIES Financial instruments Trade and other payables Related parties US$ 2.2 18.599 40 95 Third parties US$ 249.4 18.649 4,651 3,447 EUR 22.4 22.450 502 57 CHF 0.6 19.168 12 - SEK 21.0 2.280 48 6 VEF - - - 5 Borrowings Third parties US$ 213.4 18.649 3,979 5,398 Non financial instruments Salaries and social security payable Third parties US$ 0.1 18.649 3 1 Taxes payables Third parties US$ 1.0 18.649 19 11 Provisions Related parties US$ 21.3 18.599 396 394 Third parties US$ 15.0 18.649 280 307 Total current liabilities 9,930 9,721 Liabilities associated to assets classified as held for sale US$ 68.9 18.649 1,285 - Total liabilities 45,419 24,218 Net Position Liability (32,698) (15,678) (1) 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 an increase or decrease of $ 3,215 million and $ 1,647 million in the 2017 and 2016 fiscal years, respectively. The Group´s exposure to other foreign currency movements is not material. 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 fiscal year’s income/(loss) in relation to financial assets at fair value through profit and loss detailed in Note 12 to these financial statements: Increase (decrease) of the result for the year Financial assets 12.31.2017 12.31.2016 Shares 15 15 Government securities 502 158 Investment funds 959 319 Corporate bonds - 1 Variation of the result of the year 1,476 493 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, as it happened from 2014 to 2016. 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, 2017, approximately 13.7% of the indebtedness was subject to variable interest rates, mainly denominated in pesos at the Private Badlar rate plus an applicable margin. Approximately 63% of the indebtedness at variable rates is denominated in pesos. The rest of the Company’s indebtedness subject to variable interest rates is denominated in U.S. dollar, based on Libor rate plus an applicable margin. 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 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. In the fiscal years ended December 31, 2017 and 2016, the Company did not use derivative financial instruments to mitigate risks associated with fluctuations in interest rates. The following chart shows the breakdown of the Company’s borrowings classified by interest rate and the currency in which they are denominated: 12.31.2017 12.31.2016 Fixed interest rate: Argentinian pesos 2,270 2,729 U.S dollar 33,769 14,305 Subtotal loans granted at a fixed interest rate 36,039 17,034 Floating interest rates: Argentinian pesos 3,603 5,808 U.S dollar 2,108 2,479 Subtotal loans granted at a floating interest rate 5,711 8,287 Non-interest accrual U.S dollar 697 284 Argentinian pesos 519 367 Subtotal non-interest accrual 1,216 651 Total borrowings 42,966 25,972 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 fiscal year's results of $ 107 million. 6.1.2 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 service station operators, refineries, exporters, petrochemical companies, natural gas distributors, electricity large users and electricity distributors. The Company has established an allowance for doubtful accounts. This allowance represents the best estimate by the Company of possible losses associated with trade receivables. As of December 31, 2017, the Company’s trade receivables, without considering Edenor, totaled 9,453 million, out of which 70% are short-term receivables and the remaining 30% are classified as non-current and correspond mainly to CAMMESA (national company responsible for purchasing electric power from generators and selling it to distributors). With the exception of CAMMESA, which represents approximately 38% of all 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. No other client has a meaningful percentage of the total amount of these receivables. 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. In the case of Edenor, delinquent trade receivables increased from $ 659 million as of December 31, 2016 to $ 1,041 million as of December 31, 2017, mainly due to the tariff increase during the fiscal year (Note 2.3). As of December 31, 2017 and 2016, a provision in the amount of $ 459 million and $ 260 million, respectively, has been set aside for such delinquent receivables. One of the significant items of 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. Furthermore, and taking into account that in fiscal year 2016 the ENRE prevented Edenor from suspending the electricity supply to customers with delinquent balances, Edenor’s actions to reduce the impact of delinquency were limited. Therefore, at the date of issuance of these financial statements Edenor’s Board of Directors is analyzing the plans of action it will implement in order to reinforce the activities aimed at reducing delinquent balances. Additionally, it is important to point out that in fiscal year 2016 it was possible to collect more than 50% of the delinquent receivables existing as of December 31, 2015. Finally, and with regard to the electricity supplied to low-income areas and shantytowns, as stipulated in the Adjustment Agreement (Note 2.3), in fiscal year 2016 Edenor received payments for a total of $ 65 million, which represents 89% of the outstanding balance as of December 31, 2015. Past experience shows that these balances have always been collected. As of December 31, 2017 and 2016, financial statements included allowances for $ 260 million and $ 79 million, respectively. Failure to collect receivables in the future may have an adverse effect on Edenor's financial situation and operating results which, in turn, may negatively impact its capacity to repay loans, including the cancellation of its Corporate Bonds. Additionally, our Natural Gas Promotion Program compensation depends on the Argentine Government's ability and willingness to pay. Before the Government authorized the issuance of dollar-denominated sovereign bonds to cancel outstanding debts under the Program, the Company suffered a significant delay in the collection of the Compensation. Afterwards, during June and July, 2016, Petrobras and PEPASA received BONAR 2020 bonds for a face value of US$ 34.3 million and US$ 29.5 million as compensation owed as at December 2015. During 2017 the collection of the compensations by the Company were delayed again. We may not guarantee that the Company will be able to properly collect the offered compensations, which might give rise to a claim to the Argentine Government. 6.1.3 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 needs 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. Excess cash and balances above working capital management requirements are managed by the Company’s Treasury Department, which invests them in term deposits, mutual funds and marketable securities, 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. The determination of the Company’s liquidity index for fiscal years ended December 31, 2017 and 2016 is detailed below: 12.31.2017 12.31.2016 Current assets 36,912 23,150 Current liabilities 29,958 30,063 Index 1.23 0.77 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 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, 2017 Trade and other payables Borrowings Total Less than three months 12,041 13,936 25,977 Three months to one year 6,004 12,938 18,942 One to two years 221 4,166 4,387 Two to five years 122 16,624 16,746 More than five years - 30,239 30,239 Without established term 6,068 6,071 12,139 Total 24,456 83,974 108,430 As of December 31, 2016 Trade and other payables Borrowings Total Less than three months 8,799 1,088 9,887 Three months to one year 4,068 10,995 15,063 One to two years 311 2,548 2,859 Two to five years 118 6,312 6,430 More than five years - 12,080 12,080 Without established term 4,907 - 4,907 Total 18,203 33,023 51,226 6.2 Capital risk management On managing capital, the Company aims to safeguard its capacity to continue operating as an on-going business with the purpose of generating return for its shareholders and benefits to other stakeholders, and keeping an optimal capital structure to reduce the cost of capital. To keep or adjust its capital structure, the Company may adjust the amount of the dividends paid to its shareholders, reimburse capital to its shareholders, issue new shares, conduct stock repurchase programs or sell assets to reduce its debt. In line with industry practices, the Company monitors its capital based on the leverage ratio. This ratio is calculated by dividing the net debt by the total capital. The net debt equals the total indebtedness (including current and non-current indebtedness) minus cash and cash equivalents and current financial assets at fair value through profit and loss. The total capital corresponds to the shareholders’ equity as shown in the statement of financial position, plus the net debt. Financial leverage ratios as at December 31, 2017 and 2016 were as follows: 12.31.2017 12.31.2016 Total borrowings 42,966 25,972 Less: cash and cash equivalents, and financial assets at fair value through profit and loss (15,412) (5,609) Net debt 27,554 20,363 Total capital attributable to owners 44,464 31,417 Leverage ratio 61.97% 64.82% 6.3 Regulatory risk factors Pursuant to caption C of Section 37 of the Edenor’s Concession Agreement, the Grantor of the Concession may, without prejudice to other rights to which he is entitled thereunder, foreclose on the collateral granted by Edenor when the cumulative value of the penalties imposed to Edenor in the previous one-year period exceeds 20% of its annual billing, net of taxes and rates. Edenor’s Management evaluates the development of this indicator on an annual basis. 6.4 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, 2017 and 2016: As of December 31, 2017 Level 1 Level 2 Level 3 Total Assets Financial assets at fair value through Government securities 5,024 - - 5,024 Shares - - 150 150 Investment funds 9,589 - - 9,589 Derivative financial instruments - 4 - 4 Other receivables 590 - - 590 Total assets 15,203 4 150 15,357 Liabilities Derivative financial instruments - 82 - 82 Total liabilities - 82 - 82 As of December 31, 2016 Level 1 Level 2 Level 3 Total Assets Financial assets at fair value through Corporate securities 12 - - 12 Government securities 1,576 - - 1,576 Trust - - 150 150 Investment funds 3,189 - - 3,189 Other 3 - - 3 Cash and cash equivalents Investment funds 61 - - 61 Derivative financial instruments - 13 - 13 Other receivables 29 - - 29 Total assets 4,870 13 150 5,033 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 Weighted Average Cost of Capital (“WAAC”) rate as a parameter. |
7. INVESTMENTS IN SUBSIDIARIES
7. INVESTMENTS IN SUBSIDIARIES | 12 Months Ended |
Dec. 31, 2017 | |
Investments In Subsidiaries | |
INVESTMENTS IN SUBSIDIARIES | 7.1 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. 12.31.2017 12.31.2016 Company Country Main activity Direct and indirect participation % Direct and indirect participation % BLL (1) Argentina Winemaking - 100.00% Corod Argentina Oil 100.00% 100.00% CPB Energía S.A. Argentina Oil 100.00% - CTG (1) Argentina Generation - 90.42% CTLL (1) Argentina Generation - 100.00% Ecuador TLC S.A. Ecuador Oil 100.00% 100.00% Edenor Argentina Distribution of energy 51.54% 51.54% Eg3 Red (1) Argentina Distribution - 100.00% Enecor S.A. Argentina Transportation of electricity 69.99% 69.99% IEASA (2) Argentina Investment - 100.00% INDISA (1) Argentina Investment - 91.60% INNISA (1) Argentina Investment - 90.27% HIDISA Argentina Generation 61.00% 61.00% HINISA Argentina Generation 52.04% 52.04% IPB (1) Argentina Investment - 100.00% PACOSA (3) Argentina Distributor 100.00% 100.00% PBI Bolivia Investment 100.00% 100.00% PELSA (4) Argentina Oil 58.88% 58.88% Petrobras Energía Colombia Gran Cayman Colombia Oil 100.00% 100.00% Petrobras Energía México Mexico Oil - 100.00% Petrobras Energía Ecuador Gran Cayman Investment 100.00% 100.00% Petrobras Energía Operaciones Ecuador Ecuador Oil 100.00% 100.00% PEPASA (1) Argentina Oil - 49.54% Petrolera San Carlos S.A. Venezuela Oil 100.00% 100.00% PHA Spain Investment 100.00% 100.00% PISA Uruguay Investment 100.00% 100.00% PP Argentina Investment 100.00% 100.00% PP II (1) Argentina Investment - 100.00% PPSL Spain Investment 100.00% 100.00% TGU Uruguay Gas transportation 100.00% 100.00% Transelec Argentina Investment 100.00% 100.00% WEBSA (3) Argentina Distributor - 100.00% (1) See Note 1.4.1. (2) See Note 1.4.3.1. (3) See Note 1.4.3.2. (4) See Note 1.5.2. 7.2. 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 51.54% equity interest and PELSA with 58.88% equity interest, consolidated as from July 27, 2016. Edenor The subsidiary is registered in Argentina, which is also the place where it develops its activities. i. Summary statement of financial position 12.31.2017 12.31.2016 Non Current Total non current assets 16,042 12,311 Borrowings 4,192 2,770 Other non current liabilities 7,511 6,238 Total non current liabilities 11,703 9,008 Current Cash and cash equivalents 83 259 Other current assets 9,180 6,363 Total current assets 9,263 6,622 Borrowings 71 54 Other current liabilities 12,470 9,509 Total current liabilities 12,541 9,563 Total equity 1,061 362 Non-controlling interest 514 175 ii. Summary statement of comprehensive income (loss) 12.31.2017 12.31.2016 12.31.2015 Revenue 24,340 13,080 3,802 Depreciation (430) (352) (281) Interest income 273 197 96 Interest expense (1,541) (1,442) (430) Profit (loss) for the year before tax 1,123 (1,932) 1,326 Income tax (441) 743 (184) Profit (loss) for the year 682 (1,189) 1,142 Other comprehensive loss 9 5 (2) Total comprehensive (loss) profit of the year 691 (1,184) 1,140 Income (loss) of the year attributable to non-controlling interest 331 (576) 553 Other comprehensive income of the year attributable to non-controlling interest 4 2 (1) Comprehensive income (loss) of the year attributable to non-controlling interest 335 (574) 552 iii. Summary statement of cash flow 12.31.2017 12.31.2016 12.31.2015 Net cash generated by operating activities 3,283 2,931 3,217 Net cash used in investing activities (4,046) (2,373) (3,103) Net cash generated by (used in) financing activities 587 (493) (173) (Decrease) Increase in cash and cash equivalents (176) 65 (59) Cash and cash equivalents at the beginning of the year 259 129 179 Exchange difference generated by cash - 65 9 Cash and cash equivalents at the end of the year 83 259 129 PELSA i. Summary statement of financial position 12.31.2017 12.31.2016 Non Current Total non current assets 5,081 4,896 Other non current liabilities 954 1,012 Total non current liabilities 954 1,012 Current Cash and cash equivalents 162 77 Other current assets 1,727 1,154 Total current assets 1,889 1,231 Other current liabilities 599 630 Total current liabilities 599 630 Total equity 5,417 4,485 Non-controlling interest 2,227 1,844 ii. Summary statement of comprehensive income (loss) 12.31.2017 12.31.2016 (1) Revenue 3,321 1,155 Depreciation (1,017) (413) Interest income 22 13 Income (loss) for the year / period before tax 278 (3) Income tax (8) (41) Income (loss) for the year / period 270 (44) Other comprehensive income 769 228 Total comprehensive profit of the year / period 1,039 184 Income (loss) of the year attributable to non-controlling interest 111 (18) Other comprehensive income of the year attributable to non-controlling interest 316 94 Comprehensive income (loss) of the year attributable to non-controlling interest 427 76 (1) The information reflects the effect of consolidation of Petrobras Argentina as from July 27, 2016 when the Acquisition was consummated. iii. Summary statement of cash flow 12.31.2017 12.31.2016 (1) Net cash generated by operating activities 543 332 Net cash used in investing activities (362) (234) Net cash generated by financing activities (108) (108) Increase (Decrease) in cash and cash equivalents 73 (10) Cash and cash equivalents at the beginning 77 121 Exchange difference generated by cash and cash equivalents 12 (34) Cash and cash equivalents at the end of the year 162 77 (1) The information reflects the effect of consolidation of Petrobras Argentina as from July 27, 2016 when the Acquisition was consummated. PEPASA i. Summary statement of comprehensive income (loss) 09.30.2017 (1) 12.31.2016 12.31.2015 Revenue 2,894 2,839 943 Depreciation (661) (867) (276) Interest income 22 1 12 Interest expense (188) (712) (382) Profit for the year before tax 1,277 816 515 Income tax (411) (288) (164) Profit for the period / year 866 528 351 Comprehensive income of the period/year attributable to non-controlling interest 437 266 177 (1) The information reflects the effect of consolidation until September 30, 2017 when the PEPASA has merged with Pampa. ii. Summary statement of cash flow 09.30.2017 (1) 12.31.2016 12.31.2015 Net cash generated by operating activities 565 1,659 461 Net cash generated by (used in) investing activities 1,209 (2,476) (1,187) Net cash (used in) generated by financing activities (1,961) 994 706 (Decrease) Increase in cash and cash equivalents (187) 177 (20) Cash and cash equivalents at the beginning of the year 226 40 51 Exchange difference generated by cash 4 9 9 Cash and cash equivalents at the end of the period/year 43 226 40 (1) The information reflects the effect of consolidation until September 30, 2017 when the PEPASA has merged with Pampa. |
8. INVESTMENTS IN JOINT VENTURE
8. INVESTMENTS IN JOINT VENTURES | 12 Months Ended |
Dec. 31, 2017 | |
Investments In Joint Ventures | |
INVESTMENTS IN JOINT VENTURES | The following table presents the main activity and information from the financial statements used for the valuation, and percentages of participation in joint ventures: Information about the issuer Main activity Date Share capital Profit (loss) of the year Equity Direct and indirect participation % CIESA (1) Investment 12.31.2017 639 1,356 2,900 50% Citelec (2) Investment 12.31.2017 555 1,201 1,505 50% Greenwind (3) Generation 12.31.2017 5 (104) 222 50% (1) therefore, the Company has an indirect participation of 25.50% in TGS. (2) (3) The details of the balances of investments in joint ventures is as follows: 12.31.2017 12.31.2016 CIESA 4,048 3,532 Citelec 757 167 Greenwind 125 - 4,930 3,699 The following tables show the breakdown of the result from investments in joint ventures: 12.31.2017 12.31.2016 12.31.2015 CIESA 518 125 - Citelec 596 (20) 9 Greenwind (50) - - 1,064 105 9 The evolution of investments in joint ventures is as follows: 12.31.2017 12.31.2016 12.31.2015 At the beginning of the year 3,699 224 227 Reclassifications (1) 175 - - Increase for subsidiaries acquisition (2) - 3,407 - Other decreases (2) (32) (14) Share of profit 1,064 105 9 Share capital increase - - 1 Other comprehensive (loss) income (6) (5) 1 At the end of the year 4,930 3,699 224 (1) (2) Corresponds to the incorporation of the interest in CIESA (Note 1.3.1). |
9. INVESTMENTS IN ASSOCIATES
9. INVESTMENTS IN ASSOCIATES | 12 Months Ended |
Dec. 31, 2017 | |
Investments In Associates | |
INVESTMENTS IN ASSOCIATES | The following table presents the main activity and information from the financial statements used for valuation and percentages of participation in associates: Information about the issuer Main activity Date Share capital Profit (loss) of the period / year Equity Direct participation % Refinor Refinery 09.30.2017 92 (10) 980 28.50% Oldeval Transport of hydrocarbons 12.31.2017 110 216 657 23.10% The detail of the balances of the investments in associates is as follows: 12.31.2017 12.31.2016 Refinor 602 602 Oldelval 221 184 Other 1 1 824 787 The following tables show the breakdown of the result from investments in associates: 12.31.2017 12.31.2016 12.31.2015 Oldelval 44 11 - Refinor - (1) - CIESA - (3) (10) 44 7 (10) The evolution of investments in associates is as follows: Note 12.31.2017 12.31.2016 12.31.2015 At the beginning of the year 787 123 133 Dividends 30 (7) (4) - Increase for subsidiaries acquisition - 777 - Decreases on disposal of investment in subsidiary - (116) - Share of profit (loss) 44 7 (10) At the end of the year 824 787 123 Other interest in Associates Interests in mixed companies in Venezuela Interests in Petroritupano S.A. (22%), Petrowayú S.A. (36%), Petroven-Bras S.A. (34.49%) and Petrokariña S.A. (34.49%), companies organized as a result of the migration of operating agreements regulating the exploitation in Venezuela of the Oritupano Leona, La Concepción, Acema and Mata areas, respectively, were incorporated with the purchase of PPSL’s capital stock for a zero market value as of the acquisition date (see detail in Note 1.2.1). Pampa has not recognized any share in the additional losses from these investments as it has not incurred any legal or implicit obligations or made any payments in the name of these mixed companies as from the acquisition date. Additionally, under the agreements migration process, in 2006 the Venezuelan Government recognized in favor of the participating Company an interest-free severable and transferable credit in the amount of US$ 88.5 million which may be used to pay acquisition bonds under any new mixed company projects for the development of oil exploration and production activities, or licenses for the development of gas exploration and production operations in Venezuela. Since no projects have been undertaken for its use, negotiations for its transfer to third parties have been unsuccessful, and there are no other foreseen application alternatives, the Company keeps this credit valued at zero. Mixed companies should sell to PDVSA all liquid hydrocarbons produced in the delimited area and the associated natural gas (if stipulated in the agreement), pursuant to a price formula based on international benchmarks such as BRENT. Investment in Oleoductos de Crudos Pesados (OCP) The Company has an 11.42% equity interest in OCP, an oil pipeline in Ecuador that has a transportation capacity of 450,000 barrels/day. OCP has negative equity as a result of certain tax assessments in favor of the Government of Ecuador in issues where OCP and the Ecuadorian Treasury have differences in interpretation. However, and since the Company has not made any capital contributions or financial assistance commitments to OCP, this shareholding has been valued at zero. |
10. PROPERTY, PLANT AND EQUIPME
10. PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2017 | |
Property, plant and equipment [abstract] | |
PROPERTY, PLANT AND EQUIPMENT | Original values Type of good At the beginning Translation effect Increase for subsidiaries acquisition Reversal of impairment Increases Decreases Transfers (1) Reclassification to assets classified as held At the end Land 1,193 - - - 54 (582) 12 (323) 354 Buildings 2,090 1 - - - (18) 239 (238) 2,074 Equipment and machinery 9,000 17 - - 41 (27) 4,046 (913) 12,164 High, medium and low voltage lines 4,586 - - 304 - (20) 1,076 - 5,946 Substations 1,729 - - 85 - - 464 - 2,278 Transforming chamber and platforms 1,040 - - 64 - (2) 281 - 1,383 Meters 943 - - 170 - - 64 - 1,177 Wells 10,522 872 - - 295 (425) 3,017 (7,718) 6,563 Mining property 5,033 81 - - 220 - - (1,566) 3,768 Vehicles 296 2 - - 74 (6) 2 (21) 347 Furniture and fixtures and software equipment 287 7 - - 229 (4) 65 (67) 517 Communication equipments 93 - - - - - 1 (1) 93 Materials and spare parts 628 3 - - 298 (83) (330) (60) 456 Refining and distribution industrial complex 873 - - - - (12) 77 (790) 148 Petrochemical industrial complex 756 - - - - - 169 - 925 Work in progress 6,560 23 - - 12,647 10 (8,355) (320) 10,565 Advances to suppliers 786 - - - 1,131 (274) (911) - 732 Other goods 12 - - - - - - - 12 Total at 12.31.2017 46,427 1,006 - 623 14,989 (1,443) (83) (12,017) 49,502 Total at 12.31.2016 17,334 286 21,801 - 8,440 (1,273) 1 - 46,589 (1) Includes the transfer of materials and spare parts to the item "Inventories" of the current asset. Depreciation Net book values Type of good At the beginning Decreases Translation effect For the year (1) Reversal of impairment Reclassification to assets classified as held At the end At the end At 12.31.2016 Land - - - - - - - 354 1,193 Buildings (177) 15 - (109) - 22 (249) 1,825 1,913 Equipment and machinery (1,090) 16 (2) (1,238) - 211 (2,103) 10,061 7,910 High, medium and low voltage lines (778) 13 - (163) (91) - (1,019) 4,927 3,808 Substations (318) - - (58) (27) - (403) 1,875 1,411 Transforming chamber and platforms (191) - - (39) (18) - (248) 1,135 849 Meters (306) - - (47) (26) - (379) 798 637 Wells (1,665) - (180) (2,374) - 2,006 (2,213) 4,350 8,857 Mining property (630) - (18) (898) - 362 (1,184) 2,584 4,403 Vehicles (122) 5 (1) (65) - 8 (175) 172 174 Furniture and fixtures and software equipment (23) 1 (3) (137) - 32 (130) 387 264 Communication equipments (39) - - (4) - - (43) 50 54 Materials and spare parts (18) 47 - (8) - - 21 477 610 Refining and distribution industrial complex (36) 11 - (74) - 83 (16) 132 837 Petrochemical industrial complex (27) - - (113) - - (140) 785 729 Work in progress - - - - - - - 10,565 6,560 Advances to suppliers - - - - - - - 732 786 Other goods (6) - - (1) - - (7) 5 6 Total at 12.31.2017 (5,426) 108 (204) (5,328) (162) 2,724 (8,288) 41,214 Total at 12.31.2016 (2,825) 302 - (2,976) - - (5,499) 41,001 (1) Includes $ 1,940 million and $ 803 million corresponding to discontinued operations, for 2017 and 2016, respectively. Borrowing costs capitalized in the book value of property, plant and equipment during the year ended December 31, 2017 and 2016 amounted to $ 589 million and $ 303 million respectively. Labor costs capitalized in the book value of property, plant and equipment during the year ended December 31, 2017 and 2016 amounted to $ 369 and $ 419 million respectively. |
11. INTANGIBLE ASSETS
11. INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2017 | |
Intangible Assets | |
INTANGIBLE ASSETS | Original values Type of good At the beginning Increase for subsidiaries acquisition (1) Reversal of impairment Increase Decrease Reclassification to assets held for sale At the end Concession agreements 951 - 96 - - - 1,047 Goodwill 999 - - - - (311) 688 Intangibles identified in acquisitions of companies 416 - - - (54) (206) 156 Others 14 - - - - (14) - Total at 12.31.2017 2,380 - 96 - (54) (531) 1,891 Total at 12.31.2016 965 1,297 - 118 - - 2,380 (1) Includes the increase of intangible assets related to the purchase of PPSL in the amount of $ 1,218 million. Amortization Type of good At the beginning For the year (1) Reversal of impairment Decrease Reclassification to assets held for sale At the end Concession agreements (249) (27) (14) - - (290) Goodwill - - - - - - Intangibles identified in acquisitions of companies (28) (44) - - 57 (15) Others - (1) - - 1 - Total at 12.31.2017 (277) (72) (14) - 58 (305) Total at 12.31.2016 (231) (46) - - - (277) (1) Includes $ 39 million and $ 18 million corresponding to discontinued operations, for 2017 and 2016, respectively. Net book values Type of good At the end At 12.31.2016 Concession agreements 757 702 Goodwill 688 999 Intangibles identified in acquisitions of companies 141 388 Others - 14 Total at 12.31.2017 1,586 Total at 12.31.2016 2,103 |
12. FINANCIAL ASSETS AT FAIR VA
12. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT AND LOSS | 12 Months Ended |
Dec. 31, 2017 | |
Financial Assets At Fair Value Through Profit And Loss | |
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT AND LOSS | 12.31.2017 12.31.2016 Non current Shares 150 150 Government bonds - 592 Total non current 150 742 Current Government bonds 5,024 984 Corporate bonds - 12 Investment funds 9,589 3,189 Other - 3 Total current 14,613 4,188 |
13. FINANCIAL ASSETS AT AMORTIZ
13. FINANCIAL ASSETS AT AMORTIZED COST | 12 Months Ended |
Dec. 31, 2017 | |
Financial Assets At Amortized Cost | |
FINANCIAL ASSETS AT AMORTIZED COST | 12.31.2017 12.31.2016 Non current Government securities - 44 Corporate securities - 1 Financial Trustee - Gasoducto Sur Work - 17 Total non current - 62 Current Government securities 11 2 Financial Trustee - Gasoducto Sur Work 14 21 Total current 25 23 |
14. DEFERRED TAX ASSETS AND LIA
14. DEFERRED TAX ASSETS AND LIABILITIES, INCOME TAX AND MINIMUM NOTIONAL INCOME TAX | 12 Months Ended |
Dec. 31, 2017 | |
Deferred Tax Assets And Liabilities Income Tax And Minimum Notional Income Tax | |
DEFERRED TAX ASSETS AND LIABILITIES, INCOME TAX AND MINIMUM NOTIONAL INCOME TAX | The composition of the deferred tax assets and liabilities is as follows: 12.31.2016 Reclassification to held for sale Profit (loss) (1) Other comprehensive income (loss) (2) 12.31.2017 Tax loss-carryforwards 942 - 694 - 1,636 Trade and other receivables 194 (5) (70) - 119 Financial assets at fair value through profit and loss - - 12 - 12 Trade and other payables 1,124 - 58 - 1,182 Defined benefit plans 361 (56) (41) (4) 260 Provisions 1,722 (306) (674) - 742 Taxes payable 224 - (55) - 169 Liabilities associated to assets classified as held for sale - 367 - - 367 Other 126 - (81) - 45 Deferred tax asset 4,693 - (157) (4) 4,532 Property, plant and equipment (4,624) 841 2,083 - (1,700) Investments in companies (1,329) - 222 (176) (1,283) Intangible assets (294) - 221 - (73) Trade and other receivables (851) - 176 - (675) Financial assets at fair value through profit and loss (95) - 46 - (49) Borrowings (61) - (75) - (136) Assets classified as held for sale - (841) - - (841) Other (3) - 8 - 5 Deferred tax liabilities (7,257) - 2,681 (176) (4,752) (1) Includes a loss of $ 618 million corresponding to discontinued operations. (2) Includes a loss of $ 180 million corresponding to discontinued operations. 12.31.2015 Increase for subsidiaries acquisition Profit (loss) (1) Other comprehensive income (loss) (2) 12.31.2016 Tax loss-carryforwards 32 - 910 - 942 Trade and other receivables 53 89 52 - 194 Financial assets at fair value through profit and loss 8 - (8) - - Trade and other payables 333 - 791 - 1,124 Defined benefit plans 109 170 55 27 361 Provisions 134 1,372 216 - 1,722 Taxes payable 49 379 (192) (12) 224 Other 23 112 (9) - 126 Deferred tax asset 741 2,122 1,815 15 4,693 Property, plant and equipment (710) (4,477) 563 - (4,624) Share of profit from joint ventures and associates - (1,281) (48) - (1,329) Intangible assets (229) (74) 9 - (294) Trade and other receivables (266) (269) (316) - (851) Financial assets at fair value through profit and loss (49) (53) 7 - (95) Borrowings (25) (43) 7 - (61) Other (2) (21) 20 - (3) Deferred tax liabilities (1,281) (6,218) 242 - (7,257) (1) Includes a loss of $ 103 million corresponding to discontinued operations . (2) Includes a gain of $ 17 million corresponding to discontinued operations. 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: 12.31.2017 12.31.2016 Deferred tax asset 1,306 1,232 Deferred tax liabilities (1,526) (3,796) Deferred tax liabilities, net (220) (2,564) The breakdown of income tax charge is: 12.31.2017 12.31.2016 12.31.2015 Current tax 1,385 1,021 370 Deferred tax (2,524) (2,057) 163 Direct charges for income tax 79 - - Difference in the estimate of previous fiscal year income tax and the income return (307) (5) - Other comprehensive (loss) income - (15) - Minimum notional tax - (145) 54 Total income tax expense (gain) (1,367) (1,201) 587 Below is a reconciliation between income tax expense and the amount resulting from application of the tax rate on the income before taxes: Note 12.31.2017 12.31.2016 12.31.2015 Profit (loss) before tax 4,209 (1,525) 4,436 Current tax rate 35% 35% 35% Result at the tax rate 1,473 (534) 1,553 Share of profit of joint ventures and associates (208) (39) - Non-taxable results (1,347) (731) (1,045) Non-deductible cost 194 - - Non-deductible provisions 121 123 12 Other 9 131 (2) Effect of tax rate change in deferred tax 48 (449) - - Minimum notional income tax credit - (145) 54 Difference in the estimate of previous fiscal year income tax and the income tax statement (447) 13 45 Deferred tax not previously recognized (714) 17 (282) Deferred tax assets not recognized 1 (36) 252 Total income tax expense (gain) (1,367) (1,201) 587 As of December 31, 2017 and 2016 consolidated accumulated tax losses amount to $ 5,548 million and $ 4,283 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 12.31.2017 12.31.2016 2012 2017 - 167 2013 2018 1 115 2014 2019 1 153 2015 2020 10 252 2016 2021 684 942 2017 2022 940 - 1,636 1,629 Unrecognized deferred assets - (687) Recognized Tax loss-carryforwards 1,636 942 Due to the uncertainty on whether future tax income may or may not absorb all deferred tax assets, as of December 31, 2016 the Company and some subsidiaries had not recorded deferred assets resulting from tax-loss carry-forwards accrued for a total amount of $ 687 million. |
15. TRADE AND OTHER RECEIVABLES
15. TRADE AND OTHER RECEIVABLES | 12 Months Ended |
Dec. 31, 2017 | |
Trade and other receivables [abstract] | |
TRADE AND OTHER RECEIVABLES | Note 12.31.2017 12.31.2016 Non Current CAMMESA Receivable (1) 2,868 2,286 Other 6 6 Trade receivables, net 2,874 2,292 Tax credits 163 533 Allowance for tax credits (14) (105) Related parties 36 794 740 Prepaid expenses 20 26 Financial credit 37 44 Guarantee deposits 92 80 Contractual receivables in Ecuador 42 998 850 Receivable for sale of property, plant and equipment 67 - Other 11 9 Other receivables, net 2,168 2,177 Total non current 5,042 4,469 Current Receivables from energy distribution sales 6,115 4,138 Receivables from MAT 436 311 CAMMESA 2,887 1,501 CAMMESA Receivable (1) 421 519 Receivables from oil and gas sales 769 1,038 Receivables from refinery and distribution sales 958 949 Receivables from petrochemistry sales 924 744 Related parties 36 170 108 Other 136 25 Allowance for doubtful accounts (557) (429) Trade receivables, net 12,259 8,904 Note 12.31.2017 12.31.2016 Tax credits 1,290 415 Advances to suppliers 11 24 Advances to employees 25 17 Related parties 36 215 98 Prepaid expenses 69 121 Receivables for non-electrical activities 218 143 Financial credit 83 126 Receivable for the sale of interests in subsidiaries and financial instruments - 1,263 Guarantee deposits 1,053 941 Natural Gas Surplus Injection Promotion Program (2) 2,592 1,582 Insurance to recover 202 - Expenses to be recovered 371 314 Receivables from arbitral proceedings 388 - Other 528 343 Allowance for other receivables (159) (147) Other receivables, net 6,886 5,240 Total current 19,145 14,144 (1) As of December 31, 2017 and 2016, the Company and its generation subsidiaries hold receivables from CAMMESA which, at nominal value and together with accrued interest, amount to a total $ 4,508 million and $ 3,798 million, with an estimated recoverable value of $ 3,289 million and $ 2,805 million, respectively. These receivables are made up as follows: a. LVFVDs pursuant to SE Resolution No. 406/2003 for the 2004-2006 period. They have been assigned to FONINVEMEM in the amount of $ 68 million and $ 74 million including interest, and their estimated recoverable value amounts to $ 66 million and $ 71 million, respectively. b. LVFVDs pursuant to SE Resolution No. 406/2003 for the 2008-2013 period and the Trust under SE Resolution No. 95/2013 for the 2013-2016 period in the amount of $ 4,028 million and $ 3,232 million including interest, which estimated recoverable value amounts to $ 2,827 million and $ 2,242 million, respectively. As of December 31, 2017 and 2016, $ 1,445 and $ 1,159 million, including interest, have been allocated to the “2014 Agreement for the Increase of Thermal Generation Availability”, which estimated recoverable value amounts to $ 1,445 million and $ 1,050 million, respectively. c. LVFVDs for Maintenance Remuneration in the amount of $ 396 million and $ 492 million, respectively, to finance the overhauls previously authorized by the SE. They are valued at their nominal value plus accrued interest and, if applicable, they are netted from partial advances received under CAMMESA financing. (2) As of December 31, corresponds to balances pending collection for compensations under the IR and IE Programs for the April 2016-December 2017 period. Due to the short-term nature of the current trade and other receivables, their carrying amount is considered to be the same as their fair value. For the non-current trade and other receivables, the fair values are also not significantly different to their carrying amounts. At December 31, 2017 and 2016, trade receivables that were past due amounted to $ 1,606 million and $ 2,766 million, respectively, which were due and net for an allowance for doubtful accounts of $ 605 million, and $ 429 million respectively. The ageing analysis of these trade receivables is as follows: 12.31.2017 12.31.2016 Less than three months 878 2,432 Three to six months 450 135 Six to nine months 22 37 From nine to twelve months 301 161 Up to twelve months 2 1 Total expired trade receivables 1,653 2,766 The movements in the allowance for the impairment of trade receivables are as follows: 12.31.2017 12.31.2016 At the beginning 429 88 Allowance for impairment 289 252 Decreases (45) (30) Reversal of unused amounts (1) (23) Reclassification to assets held for sale (115) - Increases for purchases of subsidiaries - 142 At the end of the year 557 429 As of the date of these financial statements, the maximum exposure to credit risk corresponds to the carrying amount of each class of receivables. 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 $ 21 million decrease / increase in fiscal year’s results. The movements in the allowance for the impairment of other receivables are as follows: 12.31.2017 12.31.2016 At the beginning 252 314 Allowance for impairment 33 49 Decreases (15) (9) Decreases for deconsolidation - (3) Reversal of unused amounts (97) (180) Increase for subsidiaries acquisition - 81 At the end of the year 173 252 |
16. INVENTORIES
16. INVENTORIES | 12 Months Ended |
Dec. 31, 2017 | |
Inventories Abstract | |
INVENTORIES | 12.31.2017 12.31.2016 Materials and spare parts 1,514 1,336 Advances to suppliers 143 103 In process and finished products 640 1,496 Stock crude oil 29 425 Total 2,326 3,360 |
17. CASH AND CASH EQUIVALENTS
17. CASH AND CASH EQUIVALENTS | 12 Months Ended |
Dec. 31, 2017 | |
Cash and cash equivalents [abstract] | |
CASH AND CASH EQUIVALENTS | 12.31.2017 12.31.2016 Cash 30 16 Banks 327 1,308 Investment funds - 61 Time deposits 442 36 Total 799 1,421 |
18. SHARE CAPITAL
18. SHARE CAPITAL | 12 Months Ended |
Dec. 31, 2017 | |
Share Capital | |
SHARE CAPITAL | As of December 31, 2017, the Company´s share capital consisted of 2,080,190,514 common shares with a face value of $ 1 each and each granting the right to one vote, of which 1,836,494.69 shares are issued and 101,873,741 and 144,322,083 of shares to be issued once perfected the 2016 and 2017 Reorganizations, respectively. As of December 31, 2017, the Company holds 2,500,000 treasury shares (Note 45). 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 volume of its shares. |
19. TRADE AND OTHER PAYABLES
19. TRADE AND OTHER PAYABLES | 12 Months Ended |
Dec. 31, 2017 | |
Trade and other payables [abstract] | |
TRADE AND OTHER PAYABLES | Non Current 12.31.2017 12.31.2016 Customer contributions 80 98 Funding contributions for substations 60 52 Customer guarantees 101 83 Trade payables 241 233 ENRE Penalties and discounts 3,886 3,477 Loans (mutuums) with CAMMESA 1,885 1,347 Compensation agreements 124 - Liability with FOTAE 190 173 Payment agreement with ENRE 73 106 Other 5 - Other payables 6,163 5,103 Total non current 6,404 5,336 Current Note 12.31.2017 12.31.2016 Suppliers 8,687 5,705 CAMMESA 7,595 5,470 Customer contributions 19 46 Discounts to customers 37 37 Funding contributions substations 8 22 Customer advances 205 384 Customer guarantees 1 15 Related parties 36 80 181 Other 12 6 Trade payables 16,644 11,866 ENRE Penalties and discounts 288 56 Related parties 36 12 14 Advances for works to be executed 14 14 Compensation agreements 562 708 Payment agreements with ENRE 63 60 Other creditors 205 55 Other 264 94 Other payables 1,408 1,001 Total current 18,052 12,867 Due to the short-term nature of the current payables and other payables, their carrying amount is considered to be the same as their fair value. For the majority of the non-current payables and other payables, the fair values are also not significantly different to their carrying amounts The fair values of non-current customer contributions as of December 31, 2017 and 2016 amount to $ 90 million and $ 96 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 4.18). |
20. BORROWINGS
20. BORROWINGS | 12 Months Ended |
Dec. 31, 2017 | |
Statement 781Abstract | |
BORROWINGS | Non Current Note 12.31.2017 12.31.2016 Financial borrowings 5,950 691 Corporate bonds 27,764 12,158 CAMMESA financing 3,398 2,421 Related parties 36 14 16 37,126 15,286 Current Bank overdrafts - 846 Financial borrowings 5,097 7,539 Corporate bonds 739 2,246 CAMMESA financing - 34 Related parties 36 4 21 5,840 10,686 The maturities of the Company’s borrowings (excluding finance lease liabilities) and its exposure to interest rates are as follow: Fixed rate 12.31.2017 12.31.2016 Less than one year 4,667 5,335 One to two years 550 536 Two to five years 7,509 580 Up to five years 23,313 10,583 36,039 17,034 Floating rates Less than one year 594 4,918 One to two years 610 207 Two to five years 2,561 3,162 Up to five years 1,946 - 5,711 8,287 Non interest accrues Less than one year 579 433 One to two years - (5) Two to five years 530 223 Up to five years 107 - 1,216 651 The movements in the borrowings are as follows: 12.31.2017 12.31.2016 At the beginning 25,972 7,993 Proceeds from borrowings 26,892 18,367 Payment of borrowings (16,150) (6,813) Accrued interest 3,252 2,715 Payment of borrowings' interests (2,469) (1,519) Net foreign currency exchange difference 5,150 1,761 Increase for subsidiaries acquisition - 7,434 Costs capitalized in property, plant and equipment 329 244 Decrease through shares of subsidiaries (1) - (1,179) Decrease through offsetting with other credits (2) - (1,951) Decrease through offsetting with trade receivables (4) (242) Repurchase and redemption of corporate bonds (28) (893) Other financial results 22 55 At the end of the year 42,966 25,972 (1) Corresponding to US$ 77.4 million related to EMES financing. (2) Corresponding to US$ 123 million (comprised of US$ 120 million of principal plus US$ 3 million of interests) related to YPF financing. As of December 31, 2017 and 2016, the fair values of the Company’s non-current borrowings (Corporate Bonds) amount approximately to $ 30,611 million and $14,108 million, respectively. Such values were calculated on the basis of the determined market price of the Company’s corporate notes at the end of each year (fair value level 1 and 2). The carrying amounts of short-term borrowings approximate their fair value due to their short-term maturity. Financial borrowings and CAMMESA financing approximate their fair value as they are subjected to a variable rate. The other long-term borrowings were measured at amortized cost, which does not differ significantly from its fair value. During the years ended December 31, 2017 and 2016, the Company and its subsidiaries acquired and/or redeem its own corporate bonds or corporate bonds of various subsidiaries at their respective market value for a total face value of US$ 15.1 million and US$ 13.8 million, respectively. Due to these debt-repurchase and/or redemptions, the Company and its subsidiaries recorded a loss of $ 4 million in the year ended December 31, 2016, disclosed under the line “Result from repurchase of corporate bonds” within Other financial results. As of the date of issuance of these financial statements, the Company is in compliance with the covenants established in its indebtedness. 20.1. Details of borrowings: Type of instrument Company Currency Residual value Interest Rate Expiration Book value as of 12.31.17 Corporate bonds : 2022 CB Edenor US$ 172 Fixed 10% 2022 3,321 Class 4 CB PAMPA US$ 34 Fixed 6% 10/30/2020 638 Class E CB PAMPA ARS 575 Variable Badlar 11/13/2020 590 Class A CB PAMPA ARS 282 Variable Badlar 10/5/2018 297 T Series CB PAMPA (1) US$ 500 Fixed 7% 7/21/2023 9,491 Class 1 CB PAMPA (2) US$ 750 Fixed 8% 1/24/2027 14,184 28,521 Regulatory : CAMMESA 2014 Agreement PAMPA ARS 855 Variable CAMMESA (4) 1,572 CAMMESA Mapro PAMPA ARS 140 Variable CAMMESA (3) 193 CAMMESA Mapro CPB ARS 1,088 Variable CAMMESA (3) 1,633 3,398 Financial loans : PAMPA U$S 352 Fixed Between 2,9% and 7,5% Feb-2018 to May-2021 6,628 PAMPA U$S 63 Variable 6% + Libor Sep-2018 to May-2024 1,164 PAMPA ARS 2,270 Fixed Between 22% y 22,25% Aug-2018 to Oct-2019 2,314 Edenor U$S 50 Fixed Libor + 4,27% 10/11/2020 941 11,047 42,966 Type of instrument Company Currency Residual value Amount repurchased Interest Rate Expiration Book value as of 12.31.16 Corporate bonds : CB at Par EASA USD 4 2 Fixed 5% 12/16/2017 27 Discount CB EASA USD 130 130 Fixed 9% 12/16/2021 - 2022 CB Edenor USD 172 - Fixed 10% 10/25/2022 2,823 2017 CB Edenor USD 15 15 Fixed 11% 10/09/2017 - Class 7 CB CTG ARS 173 - Variable Badlar + 3,5% 02/12/2018 179 Class 8 CB CTG USD 1 - Fixed 7% 08/12/2020 22 Class 3 CB CTLL ARS 51 - Variable Badlar + 5% 10/30/2017 53 Class 4 CB CTLL USD 30 - Fixed 6% 10/30/2020 543 Class C CB CTLL ARS 258 - Fixed/Vble. Badlar + 4,5% and 27,75% 05/06/2017 267 Class E CB CTLL ARS 575 - Variable Badlar 11/13/2020 589 Class A CB CTLL ARS 282 - Variable Badlar 10/05/2018 297 Class II CB PEPASA ARS 525 - Variable Badlar 06/06/2017 532 Class VII CB PEPASA ARS 310 - Variable Badlar + 5% 08/03/2017 322 Class VIII CB PEPASA ARS 403 - Variable Badlar + 4% 06/22/2017 402 STV 14 PEPASA ARS 296 - Variable Badlar + 5,9% 04/14/2017 311 T Series CB PAMPA (1) USD 500 - Fixed 7% 07/21/2023 8,074 14,441 Type of instrument Company Currency Residual value Amount repurchased Interest Rate Expiration Book value as of 12.31.16 Regulatory : CAMMESA 2014 Agreement CTLL ARS 736 - Variable CAMMESA (4) 1,154 CAMMESA Mapro CTLL ARS 337 - Variable CAMMESA (3) 102 CAMMESA Mapro CPB ARS 1,211 - Variable CAMMESA (3) 1,199 2,455 Syndicated Lons : PAMPA ARS 993 - Fixed 28% 07/26/2017 999 PAMPA ARS 963 - Variable Badcor + 3% 07/26/2017 970 PAMPA USD 141 - Variable Libor + 7% 07/26/2017 2,236 PAMPA ARS 142 - Fixed 30% 02/26/2019 142 4,347 Financial loans : PEPASA USD 153 - Fixed Between 5% and 8% Aug-2017 to Feb-2018 2,436 PAMPA USD 25 - Fixed Between 2,9% and 7,5% Apr-2017 to Dec-2017 398 CTLL USD 15 - Variable Libor + 4,5% 09/26/2018 239 CTLL USD 19 - Fixed 8% 06/30/2018 305 CTLL ARS 500 - Fixed 20% 11/11/2017 505 3,883 Adelantos en cuenta corriente : PAMPA ARS - - 846 25,972 (1) On July 14, 2016, Petrobras issued the Series T Notes, for a total amount of US $ 500 million, part of which was used to cancel the Series S in its entirety, thus fulfilling the previous condition for the closing of the acquisition of PPSL. (2) On January 24, 2017, the Company issued Class 1 Corporate Bonds for a face value of U$S 750 million with an issuance price of 99.136%. Funds derived from the issuance of these CBs will be destined to investing in physical assets located in Argentina; financing working capital in Argentina; refinancing liabilities and/or making capital contributions in controlled companies or affiliates to use funds for the above-mentioned purposes. (3) Corresponds to the mutual contracts entered into with CAMMESA to finance major maintenance works related to the different generation units approved by the SE. The financing will be amortized in 36 monthly and consecutive installments as from the completion of the works, this term could be extended by 12 months. Maintenance Remuneration will be used to cancel the financing granted. As a result of the entry into force of the new remuneration scheme (Resolution SE No. 19-E /17), the Maintenance Remuneration was discontinued and it was defined that the balance of the financing will be repayable through the discount of US $ 1 / MWh for the energy generated until its total cancellation. (4) On December 1, 2014, CTLL and CAMMESA signed a Financing and Assignment of Loan Agreement in order to finance the works of the 2014 Agreement Project (see Note 47.1). The financing will be canceled, at Pampa option, through a payment in cash or through offsetting with CAMMESA receivables of the Company and other subsidiaries, 36 months as from the month following the commercial commissioning of the last generating unit making up the Projects. 20.2. Financing for the acquisition of PPSL and the Offers 20.2.1. Syndicated Loan On July 26, 2016, the Company entered into a syndicated loan agreement with domestic and foreign financial entities for an initial equivalent amount of US$ 750 million, later reduced to US$ 600 million for the use of the proceeds from the sale of its indirect interests in TGS. The syndicated loan was guaranteed until its cancellation with a pledge in first degree of privilege over the direct or indirect participation of the Company in PPSL and Petrobras, and after the sale of certain assets to YPF, over the participation in IEASA. The Syndicated Loan was canceled in its entirety during the first quarter of 2017. 20.2.2. EMES Financing On May 11, 2016, EMES, an investment vehicle with the participation of the main officers of the Company and other international investors, entered into an agreement pursuant to which EMES granted a loan in the amount of US$ 50 million to the Company, which was used to partially pay the purchase price to the transaction. Before the expiration of the Exchange Offer or the merger between the Company and Petrobras, the Company would have to cancel the total amount owed under the EMES Loan, and EMES would have to accept the delivery of part of the acquired PPSL Credit equivalent to the amount resulting from assessing the market value of the number of Petrobras’ ADRs which, if participating in the Exchange Offer or merger, would entitle EMES to receive the number of ADRs from the Company resulting from dividing the loan principal by the average market price per ADR of the Company at the NYSE on the 30 business days before the Share Purchase Agreement execution date. The execution of the EMES Financing was a condition precedent requested by the Syndicated Loan's creditors. The EMES Financing was approved by the Audit Committee and the Company's Board of Directors and is in full compliance with Argentine laws and regulations. On October 25, the Company and EMES agreed to cancel the loan with the partial assignment of the principal of the PPSL credit for an amount of US$ 77.4 million. On November 1, 2016, PPSL canceled its debt with EMES through the delivery of 11,090,286 Petrobras’ ADRs. 20.2.3. YPF Financing On May 13, 2016, the Company executed a credit agreement with YPF under which YPF undertook to grant a loan to the Company in the amount of US$ 140 million, which were destined by the Company to partially finance the Transaction. To guarantee the performance of its obligations under this financing, the Company granted a pledge on PEPASA’s shares held by it, which represent approximately 49% of PEPASA’s capital stock and voting rights. On October 14, 2016, the Company pre-paid US$ 20 million of the YPF Financing. As of December 31, 2016, the outstanding balance of the loan was offset with the receivable for the price balance owed by YPF to Petrobras under the agreements for the transfer of Río Neuquén and Aguada de la Arena consortiums. On March 9, 2017, the Board Directors resolved to approve the cancellation by YPF of the price balance payable for the transfer to YPF of the participations in Río Neuquén and Aguada de la Arena areas, through the assignment of the loan the Company held with YPF, since Pampa and Petrobras were undergoing a merger process, and the Company has taken on the management of Petrobras pursuant to the decision made by the Shareholders’ Meeting dated February 16, 2017. Furthermore, the Board of Directors agreed that Pampa, in its capacity as assigned debtor, should replace YPF. Finally, the parties agreed on the repayment of the due balances under the described terms and conditions. 20.3 Global Corporate Bonds Program The Company has the following programs in place: (i) a simple CBs Program (non-convertible into shares) for a maximum amount of US$500 million, which was authorized by CNV Resolution No. 17,162, effective until August 15, 2018; and (ii) a simple or convertible CBs Program for up to US$ 2,000 million, which was authorized by CNV Resolution No. 18,426, effective until December 29, 2021. The Company’s Shareholders’ Meeting held on April 7, 2017 approved the issuance of CBs convertible into common shares and American Depositary Shares (“ADRs”) for a face value of US$ 500 million subject to certain conditions, mainly regarding the Company’s ADR price. On January 16, 2018, the Company informed the CNV that, following the sales transactions in the refining and distribution segment (Note 1.5.1) and of certain oil assets (Note 1.5.2), the resulting fund inflow would allow the Company to afford the defined strategic investments. Therefore, the issuance of corporate bonds convertible into shares is not deemed necessary. 20.4 Guarantees on loans On September 27, 2017, Greenwind entered into a loan agreement with Corporación Interamericana de Inversiones, Banco Interamericano de Desarrollo, Banco Santander, and Industrial and Commercial Bank of China Limited (ICBC) Dubai Branch in the amount of US$ 104 million, which will be used to finance the construction, operation and maintenance of the 100 MW wind farm currently being developed in Bahía Blanca, Province of Buenos Aires. The facility will have a nine-year term as from its execution date and will be repaid in 14 six-monthly consecutive installments, the first one becoming due on May 15, 2020. Pampa granted a bond for the whole facility’s principal to guarantee the operation. On October 20 and November 13, 2017, Greenwind collected the entire financing. 20.5 TGS Financing On October 6, 2011, TGS granted the Company a borrowing/financing amounting to US$ 26 million to make the payment necessary to acquire the rights to control, suspend and waive Enron Creditors Recovery Corp. and Ponderosa Assets LLP against the Republic of Argentina before the International Centre for Settlement of Investment Disputes of the World Bank (”CIADI”) (the “Arbitration Proceeding”) pursuant to the Call Option Agreement entered into between the Company, Inversiones Argentina II and GEB Corp. (the “ICSID Contract”). After several postponements and ammendments, the parties agreed that the financing will be paid at maturity or in advance through the full and unconditional assignment to TGS of all PESA’s rights and obligations under the ICSID Agreement in case, on or before the maturity date: (a) TGS has received a 20% increase on its tariff chart and that increase remains effective pursuant to the Transitory Agreement approved by Order No. 1918/09 of the National Executive Branch, or (b) the following has been granted to TGS and remains effective: (x) the tariff adjustment set forth in the Agreement initialized by TGS and approved by its Board of Directors on October 5, 2011, or (y) any other compensatory system implemented through any tariff review system or mechanism hereinafter replacing those currently in force under Economic Emergency Law No. 25,561 of the Republic of Argentina and having an equivalent economic effect on TGS. During September 2015, the condition stipulated in the loan agreement granted by TGS has been met, which required its compulsory cancellation through the full and unconditional assignment of all the ownership rights and liabilities held by the Company under the Arbitration Proceeding. On October 7, 2015, all rights under the Arbitration Proceeding were assigned to a trust formed abroad to TGS and consequently, on that date the effects of the transaction were recognized according to the following breakdown: Loan principal balance 244 Interest and taxes 80 Total TGS loan 324 Rights over arbitration proceedings (109) Gain from discharge / cancellation of TGS loan 215 |
21. DEFERRED REVENUE
21. DEFERRED REVENUE | 12 Months Ended |
Dec. 31, 2017 | |
Deferred Revenue | |
DEFERRED REVENUE | 12.31.2017 12.31.2016 Non current Customer contributions not subject to repayment 195 200 Total non current 195 200 Current Customer contributions not subject to repayment 3 1 Total current 3 1 |
22. SALARIES AND SOCIAL SECURIT
22. SALARIES AND SOCIAL SECURITY PAYABLE | 12 Months Ended |
Dec. 31, 2017 | |
Salaries And Social Security Payable | |
SALARIES AND SOCIAL SECURITY PAYABLE | 12.31.2017 12.31.2016 Non current Seniority - based bonus 116 89 Early retirements payable 4 5 Total non current 120 94 Current Salaries and social security contributions 579 419 Provision for vacations 671 617 Provision for gratifications and annual bonus for efficiency 899 705 Early retirements payable 5 4 Total current 2,154 1,745 |
23. INCOME TAX AND MINIMUM PRES
23. INCOME TAX AND MINIMUM PRESUME TAX LIABILITY | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax And Minimum Presume Tax Liability | |
INCOME TAX AND MINIMUM PRESUME TAX LIABILITY | 12.31.2017 12.31.2016 Non current Income tax, net of withholdings and advances 848 837 Minimum notional income tax, net of withholdings and advances 15 97 Total non current 863 934 Current Income tax, net of withholdings and advances 880 1,451 Minimum notional income tax, net of withholdings and advances 63 3 Total current 943 1,454 |
24. DEFINED BENEFITS PLANS
24. DEFINED BENEFITS PLANS | 12 Months Ended |
Dec. 31, 2017 | |
Defined Benefits Plans | |
DEFINED BENEFITS PLANS | The main characteristics of benefit plans granted to Company employees are detailed below. a) Indemnity plan b) Compensatory plan c) Collective agreements As of December 31, 2017 and 2016, the most relevant actuarial information corresponding to the described benefit plans is the following: 12.31.2017 Present value of the obligation Fair value of plan assets Net liability at the end of the year Liabilities at the beginning 1,188 (155) 1,033 Items classified in profit or loss (1) Current services cost 58 - 58 Cost for interest 280 (23) 257 Cost for past service 28 - 28 Items classified in other comprehensive Actuarial losses (gains) (2) (21) 10 (11) Exchange differences on translation 32 (16) 16 Benefit payments (105) 7 (98) Contributions paid - (7) (7) Reclassification to liabilities associated to assets classified as held for sale (268) 105 (163) At the end 1,192 (79) 1,113 (1) Includes $ 25 million corresponding to discontinued operations . (2) Includes $ 10 million corresponding to discontinued operations. 12.31.2016 12.31.2015 Present value of the obligation Present value of assets Net liability at the end of the year Present value of the obligation Liabilities at the beginning 310 - 310 223 Items classified in profit or loss (1) Current services cost 42 - 42 36 Cost for interest 208 (13) 195 86 Items classified in other comprehensive Actuarial losses (gains) (2) 73 5 78 1 Benefit payments (76) 2 (74) (36) Contributions paid - (2) (2) - Increase for subsidiaries acquisition 631 (147) 484 - At the end 1,188 (155) 1,033 310 (1) Includes a loss of $ 5 million corresponding to discontinued operations for 2016 . (2) Includes $ 9 million corresponding to discontinued operations for 2016. As of December 31, 2017, net liability by type of plan, is as follows: a) 177 million corresponding to Indemnity plan; b) 274 million corresponding to Compensatory plan and c) 662 million corresponding to Collective agreements. As of December 31, 2016, net liability by type of plan, is as follows: a) 157 million corresponding to Indemnity plan; b) 270 million corresponding to Compensatory plan and c) 606 million corresponding to Collective agreements. 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. 12.31.2017 Less than one year 121 One to two years 84 Two to three years 74 Three to four years 89 Four to five years 81 Six to ten years 377 Significant actuarial assumptions used were as follows: 12.31.2017 12.31.2016 12.31.2015 Discount rate 4% 5% 6% Salaries increase 1% 1% 2% Average inflation 15% 21% 32% The following sensitivity analysis shows the effect of a variation in the discount rate and salaries increase on the obligation amount: 12.31.2017 Discount rate: 4% Obligation 1,298 Variation 106 10% Discount rate: 6% Obligation 1,102 Variation (90) (8%) Salaries increase: 0% Obligation 1,126 Variation (66) (6%) Salaries increase: 2% Obligation 1,269 Variation 77 7% 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. |
25. TAX LIABILITIES
25. TAX LIABILITIES | 12 Months Ended |
Dec. 31, 2017 | |
Tax Liabilities | |
TAX LIABILITIES | 12.31.2017 12.31.2016 Non current Value added tax 219 287 Sales tax 17 9 Payment plans 130 10 Total non current 366 306 Current Value added tax 526 840 Municipal, provincial and national contributions 398 377 Payment plans 61 3 Municipal taxes 69 58 Tax withholdings to be deposited 195 381 Stamp tax payable 10 10 Royalties 138 165 Extraordinary Canon 553 527 Sales tax - 14 Other 15 17 Total current 1,965 2,392 |
26. PROVISIONS
26. PROVISIONS | 12 Months Ended |
Dec. 31, 2017 | |
Provisions [abstract] | |
PROVISIONS | Note 12.31.2017 12.31.2016 Non Current Provisions for contingencies 3,468 3,977 Asset retirement obligation 918 1,719 Environmental remediation 15 174 Onerous contract (Ship or pay) 42 - 366 Other provisions 34 31 4,435 6,267 Current Provisions for contingencies 129 94 Asset retirement obligation 152 143 Environmental remediation 127 175 Onerous contract (Ship or pay) 42 389 394 798 806 12.31.2017 For contingencies Asset retirement obligation For environmental remediation At the beginning of the year 4,071 1,862 349 Increases 980 634 98 Reclassification (209) (16) 16 Decreases (881) (166) (135) Reclassification to liabilities associated to assets classified as held for sale - (875) (184) Reversal of unused amounts (364) (369) (2) At the end of the year 3,597 1,070 142 12.31.2016 For contingencies Asset retirement obligation For environmental remediation At the beginning of the year 335 49 - Increases 472 629 210 Increases for purchases of subsidiaries 3,333 1,210 235 Decreases (69) (26) (96) At the end of the year 4,071 1,862 349 12.31.2015 For contingencies Asset retirement obligation At the beginning of the year 141 3 Increases 228 46 Decreases (34) - At the end of the year 335 49 26.1 Provision for Environmental remediation The Company is subject to extensive environmental regulations in Argentina and in the other countries in which it operates. 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 Energía’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. 26.2 Provision for well plugging and abandonment In accordance with the regulations applicable in the countries where the Company (directly or indirectly through subsidiaries) performs oil and gas exploration and production activities, the Company must incur costs associated with well plugging and abandonment. The Company has not pledged any assets for the purpose of settling such 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. 26.3 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. |
27. REVENUE
27. REVENUE | 12 Months Ended |
Dec. 31, 2017 | |
Revenue [abstract] | |
REVENUE | 12.31.2017 12.31.2016 12.31.2015 Sales of energy to the Spot Market 5,546 2,411 1,050 Sales of energy by contract 3,965 2,187 1,357 Other sales 49 11 11 Generation subtotal 9,560 4,609 2,418 Energy sales 24,170 12,952 3,721 Right of use of poles 131 99 76 Connection and reconnection charges 38 19 5 Other sales - 9 - Distribution subtotal 24,339 13,079 3,802 Oil, Gas and liquid sales 8,271 4,746 848 Other sales 560 117 - Oil and gas subtotal 8,831 4,863 848 Administrative services sales 383 50 37 Other sales 5 2 1 Holding and others subtotal 388 52 38 Petrochemicals sales 7,229 2,507 - Petrochemicals subtotal 7,229 2,507 - Total revenue 50,347 25,110 7,106 |
28. COST OF SALES
28. COST OF SALES | 12 Months Ended |
Dec. 31, 2017 | |
Cost Of Sales | |
COST OF SALES | 12.31.2017 12.31.2016 12.31.2015 Inventories at the beginning of the year 3,360 225 136 Plus: Charges for the year Incorporation of inventories for acquisition of companies - 3,072 - Purchases of inventories, energy and gas 19,649 9,110 2,496 Salaries and social security charges 4,659 3,450 2,196 Benefits to personnel 164 77 36 Accrual of defined benefit plans 169 134 97 Fees and compensation for services 1,948 1,125 586 Property, plant and equipment depreciations 3,222 2,068 641 Intangible assets amortization 33 28 29 Transport of energy 79 11 16 Consumption of materials 645 390 297 Penalties (1) 269 2,377 260 Maintenance 422 366 128 Canons and Royalties 1,295 602 139 Environmental control 64 33 - Rental and insurance 264 174 79 Surveillance and security 141 95 53 Taxes, rates and contributions 67 45 25 Communications 45 36 15 Water consumption 25 14 9 Other 233 81 25 Subtotal 33,393 23,288 7,127 Less: Inventories at the end of the year (2,326) (3,360) (225) Total cost of sales 34,427 20,153 7,038 (1) Includes $ 414 million of recover by penalties (Note 2.3) |
29. SELLING EXPENSES
29. SELLING EXPENSES | 12 Months Ended |
Dec. 31, 2017 | |
Selling Expenses | |
SELLING EXPENSES | 12.31.2017 12.31.2016 12.31.2015 Salaries and social security charges 618 482 311 Accrual of defined benefit plans 14 13 12 Fees and compensation for services 593 496 333 Compensation agreements 132 157 74 Property, plant and equipment depreciations 56 50 35 Taxes, rates and contributions 696 343 95 Communications 177 129 59 Penalties 266 182 24 Doubtful accounts 254 235 27 Transport 85 29 - Other 13 16 3 Total selling expenses 2,904 2,132 973 |
30. ADMINISTRATIVE EXPENSES
30. ADMINISTRATIVE EXPENSES | 12 Months Ended |
Dec. 31, 2017 | |
Administrative Expenses | |
ADMINISTRATIVE EXPENSES | 12.31.2017 12.31.2016 12.31.2015 Salaries and social security charges 1,953 1,517 527 Benefits to the personnel 140 53 16 Accrual of defined benefit plans 135 85 13 Fees and compensation for services 1,338 1,222 294 Compensation agreements 468 236 101 Directors' and Syndicates' fees 95 65 44 Property, plant and equipment depreciations 110 55 15 Consumption of materials 61 38 23 Maintenance 60 33 3 Transport and per diem 44 25 6 Rental and insurance 138 115 77 Surveillance and security 94 51 26 Taxes, rates and contributions 102 37 45 Communications 48 30 9 Institutional advertising and promotion 56 29 1 Other 63 37 21 Total administrative expenses 4,905 3,628 1,221 |
31. EXPLORATION EXPENSES
31. EXPLORATION EXPENSES | 12 Months Ended |
Dec. 31, 2017 | |
Exploration Expenses | |
EXPLORATION EXPENSES | 12.31.2017 12.31.2016 12.31.2015 Geological and geophysical expenses 17 18 - Decrease in unproductive wells 27 76 3 Total exploration expenses 44 94 3 |
32. OTHER OPERATING INCOME AND
32. OTHER OPERATING INCOME AND EXPENSES | 12 Months Ended |
Dec. 31, 2017 | |
Other Operating Income And Expenses | |
OTHER OPERATING INCOME AND EXPENSES | Other operating income Note 12.31.2017 12.31.2016 12.31.2015 Recovery of expenses 1 48 7 Recovery of doubtful accounts 86 29 1 Surplus Gas Injection Compensation 2,340 2,037 547 Commissions on municipal tax collections 32 21 15 Services to third parties 190 109 54 Profit for property, plant and equipment sale 5 91 - Dividends received 33 6 4 Recognition of income - provisional remedies Note MEyM No 2016-04484723 - 1,126 - Income recognition on account of the RTI - SE Res. No. 32/15 - 419 5,025 Higher costs recognition - SE Res. No. 250/13 and subsequent Notes - 82 551 Onerous contract (Ship or pay) 42 - 150 - Reversal of contingencies provision 521 5 - Gain from cancellation of TGS Loan - - 215 Other 180 41 98 Total other operating income 3,388 4,164 6,517 Other operating expenses Provision for contingencies (881) (455) (228) Decrease in property, plant and equipment (15) (51) (6) Allowance for uncollectible tax credits (14) (29) (95) Net expense for technical functions - (18) (13) Tax on bank transactions (817) (473) (176) Other expenses FOCEDE - (15) (60) Cost for services provided to third parties (39) (32) (52) Compensation agreements (45) (109) (48) Donations and contributions (38) (17) (7) Institutional relationships (65) (44) (18) Extraordinary Canon (314) (366) - Contingent consideration 1.2.1 (171) - - Onerous contract (Ship or Pay) (90) - - Other (462) (267) (66) Total other operating expenses (2,951) (1,876) (769) |
33. FINANCIAL RESULTS
33. FINANCIAL RESULTS | 12 Months Ended |
Dec. 31, 2017 | |
Financial Results | |
FINANCIAL RESULTS | Finance income 12.31.2017 12.31.2016 12.31.2015 Commercial interest 986 677 239 Financial interest 334 67 61 Other interest 112 105 31 Total finance income 1,432 849 331 Finance expenses Commercial interest (1,030) (1,021) (194) Fiscal interest (260) (76) (75) Financial interest (1) (3,714) (3,083) (937) Other interest (5) (3) (2) Taxes and bank commissions (78) (36) (33) Other financial expenses (25) (58) (16) Total financial expenses (5,112) (4,277) (1,257) Other financial results Foreign currency exchange difference, net (3,558) (1,099) (566) Result from repurchase of Corporate Bonds - (4) 10 Changes in the fair value of financial instruments 1,471 1,120 2,271 Discounted value measurement (141) (65) 23 Asset retirement obligation (40) (32) (19) Other financial results 2 - - Total other financial results (2,266) (80) 1,719 Total financial results, net (5,946) (3,508) 793 (1) |
34. EARNING (LOSS) PER SHARE
34. EARNING (LOSS) PER SHARE | 12 Months Ended |
Dec. 31, 2017 | |
Earning Loss Per Share | |
EARNING (LOSS) PER SHARE | a) Basic Basic earnings (loss) 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. b) Diluted Diluted earnings (loss) 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 (loss) 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 earning (loss) per share equal to the basic. As of December 31, 2017 and 2016, the Company does not hold any significant potential dilutive shares, therefore there are no differences with the basic earnings (loss) per share. 12.31.2017 12.31.2016 12.31.2015 Earning (loss) for continuing operations attributable to the equity holders of the Company 4,623 (93) 3,065 Weighted average amount of outstanding shares 1,971 1,736 1,347 Basic and diluted earnings (loss) per share for continuing operations 2.3455 (0.0536) 2.2760 (Loss) Earning for discontinued operations attributable to the equity holders of the Company (17) 82 - Weighted average amount of outstanding shares 1,971 1,736 1,347 Basic and diluted (loss) earnings per share for (0.0086) 0.0472 - Earning (loss) attributable to the equity holders of the Company 4,606 (11) 3,065 Weighted average amount of outstanding shares 1,971 1,736 1,347 Basic and diluted earnings (loss) per share 2.3369 (0.0063) 2.2760 |
35. SEGMENT INFORMATION
35. SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2017 | |
Segment Information | |
SEGMENT INFORMATION | The Company is an integrated energy company in Argentina, which participates in the various segments of the electricity sector, in the exploration and production of gas and oil, in petrochemicals and in the refining and distribution of fuels. 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: Generation Distribution of Energy Oil and Gas results corresponding to the divestment mentioned in Note 1.5.2 as discontinued operations Refining and Distribution results corresponding to the divestment mentioned in Note 1.5.1 as discontinued operations Petrochemicals Holding and Other Business The Company manages its operating segment based on its individual net results. Consolidated profit and loss information as of December 31, 2017 Generation Distribution Oil and gas Refining and Petrochemicals Holding and others Eliminations Consolidated Revenue 9,560 24,339 8,831 - 7,229 388 - 50,347 Intersegment sales 37 - 1,810 - - 36 (1,883) - Cost of sales (5,358) (17,667) (6,581) - (6,655) (3) 1,837 (34,427) Gross profit (loss) 4,239 6,672 4,060 - 574 421 (46) 15,920 Selling expenses (94) (2,079) (455) - (290) - 14 (2,904) Administrative expenses (357) (1,444) (975) - (74) (2,095) 40 (4,905) Exploration expenses - - (44) - - - - (44) Other operating income 420 97 2,522 - 64 289 (4) 3,388 Other operating expenses (149) (758) (776) - (571) (697) - (2,951) Reversal of impairment of property, plant and equipment - 461 - - - - - 461 Reversal of impairment of intangible assets - 82 - - - - - 82 Share of profit (loss) from joint ventures (50) - - - - 1,114 - 1,064 Share of profit from associates - - 44 - - - - 44 Operating profit (loss) 4,009 3,031 4,376 - (297) (968) 4 10,155 Finance income 881 272 96 - 10 214 (41) 1,432 Finance expenses (932) (1,595) (245) - - (2,381) 41 (5,112) Other financial results 55 (9) (193) - 11 (2,130) - (2,266) Financial results, net 4 (1,332) (342) - 21 (4,297) - (5,946) Profit (loss) before income tax 4,013 1,699 4,034 - (276) (5,265) 4 4,209 Income tax and minimum notional income tax 85 (417) (389) - - 2,088 - 1,367 Profit (loss) for the year from continuing operations 4,098 1,282 3,645 - (276) (3,177) 4 5,576 Profit (loss) for the year from the discontinued operations - - 121 (43) - - 16 94 Profit (loss) for the year 4,098 1,282 3,766 (43) (276) (3,177) 20 5,670 Depreciation and amortization 845 443 1,956 - 117 60 - 3,421 Consolidated profit and loss information as of December 31, 2017 Generation Distribution Oil and gas Refining and Petrochemicals Holding and others Eliminations Consolidated Total profit (loss) attributable to: Owners of the Company 3,890 951 3,241 (43) (276) (3,177) 20 4,606 Non - controlling interest 208 331 525 - - - - 1,064 Consolidated statement of financial position as of December 31, 2017 Assets 22,833 26,149 22,116 5,887 3,161 29,449 (5,128) 104,467 Liabilities 7,635 24,460 10,446 3,599 2,406 40,948 (5,139) 84,355 Additional consolidated information as of December 31, 2017 Increases in property, plant and equipment 6,277 4,137 4,195 154 110 116 - 14,989 Consolidated profit and loss information as of December 31, 2016 Generation Distribution Oil and gas Refining and Petrochemicals Holding and others Eliminations Consolidated Revenue 4,609 13,079 4,863 - 2,507 52 - 25,110 Intersegment sales 15 - 716 - - 28 (759) - Cost of sales (2,726) (12,220) (3,737) - (2,207) (3) 740 (20,153) Gross profit (loss) 1,898 859 1,842 - 300 77 (19) 4,957 Selling expenses (65) (1,618) (334) - (110) (5) - (2,132) Administrative expenses (392) (1,171) (632) - (15) (1,446) 28 (3,628) Exploration expenses - - (94) - - - - (94) Other operating income 55 1,718 1,892 - - 560 (61) 4,164 Other operating expenses (104) (465) (826) - (263) (282) 64 (1,876) Share of loss from joint ventures - - - - - 105 - 105 Share of profit (loss) from associates - - 11 (1) - (3) - 7 Income from the sale of subsidiaries and financial assets - - - - - 480 - 480 Operating profit (loss) 1,392 (677) 1,859 (1) (88) (514) 12 1,983 Finance income 600 206 103 - 2 105 (167) 849 Finance expenses (750) (1,645) (730) - - (1,320) 168 (4,277) Other financial results 228 (360) 22 - (3) 35 (2) (80) Financial results, net 78 (1,799) (605) - (1) (1,180) (1) (3,508) Profit (loss) before income tax 1,470 (2,476) 1,254 (1) (89) (1,694) 11 (1,525) Income tax and minimum notional income tax (317) 753 (305) - - 1,070 - 1,201 Profit (loss) for the year from continuing operations 1,153 (1,723) 949 (1) (89) (624) 11 (324) Profit for the year from discontinued operations - - (74) 75 - - 71 72 Profit (loss) for the year 1,153 (1,723) 875 74 (89) (624) 82 (252) Depreciation and amortization 378 364 1,398 - 35 26 - 2,201 Consolidated profit and loss information as of December 31, 2016 Generation Distribution Oil and gas Refining and Petrochemicals Holding and others Eliminations Consolidated Total profit (loss) attributable to: Owners of the Company 1,045 (1,147) 627 74 (89) (603) 82 (11) Non - controlling interest 108 (576) 248 - - (21) - (241) Consolidated statement of financial position as of December 31,2016 Assets 19,577 17,219 19,414 6,259 2,812 19,494 (7,498) 77,277 Liabilities 8,632 18,856 11,662 3,267 2,401 25,883 (7,498) 63,203 Additional consolidated information as of December 31, 2016 Increases in property, plant and equipment 2,378 2,703 3,051 165 58 85 - 8,440 Increases in intangible assets 108 - 994 224 - - - 1,326 Consolidated profit and loss information at December 31, 2015 Generation Distribution Oil and gas Holding Eliminations Consolidated Revenue 2,418 3,802 848 38 - 7,106 Intersegment sales - - 96 16 (112) - Cost of sales (1,282) (5,189) (660) (3) 96 (7,038) Gross profit (loss) 1,136 (1,387) 284 51 (16) 68 Selling expenses (24) (833) (116) - - (973) Administrative expenses (262) (697) (150) (128) 16 (1,221) Exploration expenses - - (3) - - (3) Other operating income 91 5,656 552 218 - 6,517 Other operating expenses (79) (599) (82) (9) - (769) Reversal of impairment of property, plant and equipment 25 - - - - 25 Share of profit in joint ventures - - - 9 - 9 Share of loss in associates - - - (10) - (10) Operating profit 887 2,140 485 131 - 3,643 Finance income 295 96 1 26 (87) 331 Finance expenses (358) (577) (389) (20) 87 (1,257) Other financial results (82) (870) 419 2,252 - 1,719 Financial results, net (145) (1,351) 31 2,258 - 793 Profit before income tax 742 789 516 2,389 - 4,436 Income tax and minimum notional income tax (192) (176) (164) (55) - (587) Profit for the year 550 613 352 2,334 - 3,849 Depreciation and amortization 149 295 276 - - 720 Consolidated profit and loss information at December 31, 2015 Generation Distribution Oil and gas Holding Eliminations Consolidated Total profit attributable to: Owners of the Company 497 59 175 2,334 - 3,065 Non - controlling interest 53 554 177 - - 784 Consolidated statement of financial position as of December 31, 2015 Assets 8,051 11,737 3,970 6,563 (1,171) 29,150 Liabilities 5,956 11,673 3,361 950 (1,171) 20,769 Additional consolidated information as of December 31, 2015 Increases of property, plant and equipment 1,516 2,518 2,214 - - 6,248 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. |
36. RELATED PARTIES_ TRANSACTIO
36. RELATED PARTIES´ TRANSACTIONS | 12 Months Ended |
Dec. 31, 2017 | |
Related Parties Transactions | |
RELATED PARTIES´ TRANSACTIONS | a) Sales of goods and services 12.31.2017 12.31.2016 12.31.2015 Joint ventures: Transener (1) 28 15 15 TGS (2) 527 254 - Associates and other related parties: CYCSA - 14 2 TGS (2) - - 40 Refinor (3) 126 45 - Oldelval 4 1 - 685 329 57 (1) Corresponds to advisory services in technical assistance. (2) Corresponds to advisory services in technical assistance and gas and refined products sales. (3) Corresponds to oil sales. b) Purchases of goods and services 12.31.2017 12.31.2016 12.31.2015 Joint ventures: Transener (7) (10) (5) TGS (1) (197) (132) - SACME (47) (35) (27) Associates and other related parties: Origenes Vida (13) (6) - TGS (1) - - (3) Refinor (2) (393) (117) - Oldelval (3) (74) (31) - (731) (331) (35) (1) Corresponds to natural gas transportation services. (2) Corresponds to purchase of refined products. (3) Corresponds to oil transportation services. c) Fees for services 12.31.2017 12.31.2016 12.31.2015 Associates and other related parties: Salaverri, Dellatorre, Burgio & Wetzler (16) (23) (1) (16) (23) (1) Corresponds to fees for legal advice. d) Other operating income 12.31.2017 12.31.2016 12.31.2015 Associates and other related parties: TGS - - 215 CYCSA - - 6 OCP - 150 - - 150 221 Corresponds to onerous contract (Ship or Pay). e) Other operating expenses 12.31.2017 12.31.2016 12.31.2015 Associates and other related parties: OCP (1) (90) - - Foundation (2) (35) (13) (3) (125) (13) (3) (1) Corresponds to onerous contract (Ship or Pay). (2) Corresponds to donations. f) Finance income 12.31.2017 12.31.2016 12.31.2015 Joint ventures: TGS 65 24 - 65 24 - Corresponds to finance leases. g) Finance expenses 12.31.2017 12.31.2016 12.31.2015 Associates and other related parties: TGS - - (12) Orígenes Retiro (6) (7) - Grupo EMES (1) - (417) - (6) (424) (12) (1) Note 20. h) Corporate Bonds transactions Purchase of Corporate Bonds 12.31.2017 12.31.2016 12.31.2015 Associates and other related parties: Orígenes Retiro - 666 - - 666 - Sale of Corporate Bonds 12.31.2017 12.31.2016 12.31.2015 Associates and other related parties: Orígenes Retiro - 590 - - 590 - i) Dividends received 12.31.2017 12.31.2016 12.31.2015 Associates and other related parties: CIESA - 4 - Oldelval 7 - - TJSM 8 3 - TMB 10 3 - 25 10 - j) Payment of dividends Associates and other related parties: 12.31.2017 12.31.2016 12.31.2015 EMESA (44) - - APCO Oil (44) (45) - Ultracore - (3) - (88) (48) - k) Key management personnel remuneration The total remuneration to executive directors accrued during the year ended December 31, 2017, 2016 and 2015 amounts to $ 740 million ($ 95 million in Directors' and Sindycs' fees and $ 645 in the accrual of the Company-Value Compensation, EBDA Compensation and Stock-based Compensation Plans, of which $ 510 million correspond to compensation based on shares of which $ 406 million correspond to compensation based on shares l) Balances with related parties: As of December 31, 2017 Trade receivables Other receivables Current Non Current Current Joint ventures: Transener 5 - - TGS 129 789 75 Greenwind - - 127 SACME - 5 - Associates and other related parties: Ultracore - - 10 Refinor 10 - - SACDE 25 - 2 Other 1 - 1 170 794 215 As of December 31, 2017 Trade payables Other payables Borrowings Provisions Current Current Non Current Current Current Joint ventures: TGS 17 - - - - SACME - 5 - - - Associates and other related parties: Orígenes Seguro de vida - - - 2 - Orígenes Retiro - - 14 2 - OCP - - - - 389 Refinor 53 - - - - Oldelval 9 - - - - Other - 7 - - - 80 12 14 4 389 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, 2017, ANSES holds Edenor's Notes due 2022 amounting to $ 317 million. As of December 31, 2016 Trade receivables Other receivables Current Non Current Current Joint ventures: Transener 10 - - TGS 90 733 88 SACME - 7 1 Associates and other related parties: Ultracore - - 4 Refinor 6 - 4 Oldelval 1 - - Other 1 - 1 108 740 98 As of December 31, 2016 Trade payables Other payables Borrowings Provisions Current Current Non Current Current Non Current Current Joint ventures: Transener 9 - - - - - TGS 116 - - - - - SACME - 5 - - - - Associates and other related parties: Orígenes Retiro - - 16 21 - - OCP - - - - 366 394 UTE Apache - 5 - - - - Refinor 32 - - - - - Oldelval 22 - - - - - Other 2 4 - - - - 181 14 16 21 366 394 |
37. FINANCIAL INSTRUMENTS
37. FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2017 | |
Financial Instruments | |
FINANCIAL INSTRUMENTS | The following chart presents financial instruments by category: As of December 31, 2017 Financial assets/liabilities at amortized cost Financial assets/liabilities at fair value through profit and loss Subtotal financial assets/liabilities Non financial assets/liabilities Total Assets Trade receivables and other receivables 21,512 590 22,102 2,085 24,187 Financial assets at amortized cost Government securities 11 - 11 - 11 Trusts 14 - 14 - 14 Financial assets at fair value through profit Government securities - 5,024 5,024 - 5,024 Shares - 150 150 - 150 Investment funds - 9,589 9,589 - 9,589 Derivative financial instruments - 4 4 - 4 Cash and cash equivalents 799 - 799 - 799 Total 22,336 15,357 37,693 2,085 39,778 Liabilities Trade and other liabilities 18,142 1,885 20,027 4,429 24,456 Borrowings 42,966 - 42,966 - 42,966 Derivative financial instruments - 82 82 - 82 Total 61,108 1,967 63,075 4,429 67,504 As of December 31, 2016 Financial assets/liabilities at amortized cost Financial assets/liabilities at fair value through profit and loss Subtotal financial assets/liabilities Non financial assets/liabilities Total Assets Trade receivables and other receivables 17,553 29 17,582 1,031 18,613 Financial assets at amortized cost Government securities 46 - 46 - 46 Corporate securities 1 - 1 - 1 Trusts 38 - 38 - 38 Financial assets at fair value through profit and loss Government securities - 1,576 1,576 - 1,576 Corporate securities - 12 12 - 12 Shares - 150 150 - 150 Investment funds - 3,189 3,189 - 3,189 Derivative financial instruments - 13 13 - 13 Cash and cash equivalents 1,360 61 1,421 - 1,421 Total 18,998 5,030 24,028 1,031 25,059 Liabilities Trade and other liabilities 13,016 1,347 14,363 3,840 18,203 Borrowings 25,972 - 25,972 - 25,972 Total 38,988 1,347 40,335 3,840 44,175 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, 2017 Financial assets/liabilities at amortized cost Financial assets/liabilities at fair value through profit and loss Subtotal financial assets/liabilities Non Financial assets/ liabilities Total Interest income 1,277 155 1,432 - 1,432 Interest expense (4,767) - (4,767) (242) (5,009) Foreign exchange, net (4,353) 1,115 (3,238) (320) (3,558) Results from financial instruments at fair value - 1,471 1,471 - 1,471 Other financial results (245) - (245) (37) (282) Total (8,088) 2,741 (5,347) (599) (5,946) As of December 31, 2016 Financial assets/liabilities at amortized cost Financial assets/liabilities at fair value through profit and loss Subtotal financial assets/liabilities Non Financial assets/ liabilities Total Interest income 845 4 849 - 849 Interest expense (3,700) (417) (4,117) (66) (4,183) Foreign exchange, net (1,369) 250 (1,119) 20 (1,099) Results from financial instruments at fair value - 1,120 1,120 - 1,120 Other financial results (166) 3 (163) (32) (195) Total (4,390) 960 (3,430) (78) (3,508) As of December 31, 2015 Financial assets/liabilities at amortized cost Financial assets/liabilities at fair value through profit and loss Subtotal financial assets/liabilities Non Financial assets/ liabilities Total Interest income 327 4 331 - 331 Interest expense (1,137) - (1,137) (71) (1,208) Foreign exchange, net (1,027) 461 (566) - (566) Results from financial instruments at fair value - 2,271 2,271 - 2,271 Other financial results (17) 1 (16) (19) (35) Total (1,854) 2,737 883 (90) 793 |
38. CONTINGENCIES
38. CONTINGENCIES | 12 Months Ended |
Dec. 31, 2017 | |
Contingencies | |
CONTINGENCIES | 38.1. Actions brought against the Company 38.1.1 Distribution of energy segment 38.1.1.1 Legal action brought by “Consumidores Financieros Asociación civil para su defensa”. Purpose: 1) Reimbursement of the Value Added Tax (VAT) percentage paid alleged on the illegally “widened” taxable basis due to the incorporation of the FNEE. Distribution companies, the defendants, had not paid this tax when CAMMESA invoiced them the electricity purchased for distribution purposes. 2) 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. 3) 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. Amount Procedural stage of the proceedings Conclusion 38.1.1.2 Legal action brought by ASOCIACIÓN DE DEFENSA DE DERECHOS DE USUARIOS Y CONSUMIDORES – ADDUC Purpose: Amount Procedural stage of the proceedings: Conclusion: 38.1.2 Sales tax The Company maintains interpretative differences with the AFIP and Argentinian provincial tax authorities related to taxes applicable to its oil and gas activity. The Company estimates that the outcome of these differences will not have significant adverse effects on the Company’s financial position or results of operations. 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 Act No. 15,336. Pursuant to this Section, revenues resulting from the generation of electric power are exempted from the provincial sales tax. 38.2. Actions submitted by the Company 38.2.1 Claim for the recognition of Gas Plus costs In September 2015, CAMMESA informed CTLL that, pursuant to SE Resolution No. 529/14, as from the termination of the first automatic renewal of the natural gas supply agreements in force as at that date (January 2016), it would cease recognizing: (i) any other automatic renewal of such contracts, (ii) costs associated with the acquisition of Gas Plus (including the 10% contemplated in the Master Agreement). Therefore, on September 3, 2015 and January 1, 2016, CTLL declared a force majeure regarding the agreements for the acquisition of natural gas with Pan American Energy LLC Argentina and PEPASA, respectively, which resulted in the suspension of CTLL's obligations under both agreements. Additionally, claims against CAMMESA were filed regarding both agreements. In the absence of a reply by the ES, on November 13, 2015 CTLL submitted an administrative claim prior to the filing of a complaint to reverse CAMMESA's decision and, subsidiarily, to seek a redress for the damages sustained by CTLL. In view of this situation and after all administrative remedies had been exhausted, on October 7, 2016 the Company filed a complaint against the National Government for the January-March 2016 period. 38.2.2 Income tax 38.2.2.1. Inflation adjustment HIDISA and HINISA have assessed their income taxes for fiscal years 2012 - 2015 and CTG for the fiscal year 2015, 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 domestic wholesale price index (IPIM) published by the National Institute of Statistics and Censuses, until October 2015 and the index of consumer prices City of Buenos Aires (IPCBA) 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 of December 31, 2017 the Company, HIDISA, HINISA and CTG will 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 $ 843 million including compensatory interest and was disclosed in the line “Income tax liability and minimum notional income tax non-current”. On March 31, 2017, CTG adhered to the tax moratorium set forth by Act No. 27,260 for income taxes corresponding to fiscal year 2015 on account of the application of the above-described inflation adjustment mechanism. 38.2.2.2 Tax refund claim The Company, HIDISA, HINISA and CPB have filed several tax refund claims in the amount of $ 1,228 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. The Company considers it has a high probability of obtaining a favorable final and conclusive ruling. 38.2.3 Minimum national income tax 38.2.3.1 Tax refund claim The Company and CTLL have filed different petitions for refund against AFIP – DGI for the application of the IGMP corresponding to the fiscal years 2008 and 2009, seeking the refund of $ 25 million, including the recovery of payments recorded and the reversal of the payment made on account of the offsetting of several fiscal credits. As AFIP didn’t answer the claim, the Company and CTLL brought the tax refund claim before a National First Instance Administrative Litigation Court Federal. On August 25, 2016 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 received as of the date of these financial statements and the company is filing all applicable claims in this respect. The Company considers it has a high probability of obtaining a favorable final and conclusive ruling. 38.2.3.2 Declaratory relief The Company and its subsidiaries filed a petition for declaratory relief pursuant to Section 322 of the Federal Code of Civil and Commercial Procedure against AFIP in order to obtain assurance as to the application of the minimum notional income tax for the fiscal years from 2010 to 2015, based on the decision by the CSJN in “Hermitage” dated on September 15, 2010. In this established precedent, the Court had declared this tax unconstitutional since it may be considered unreasonable under certain circumstances and since it breaches the tax capacity principle. Furthermore, the Company and certain subsidiaries have requested the granting of interim injunctive relief so that AFIP may refrain from demanding payment or instituting tax execution proceedings on the tax and for the fiscal year mentioned. The Court seized of in the proceedings decided to reject the precautionary measures. During November and December, 2015, the Company and EGSSA (currently merged with the Company) received a favorable decision by the first-instance Court and the Chamber of Appeals, respectively, on the declaratory relief claim filed for fiscal period 2010. During the month of November 2016, EGSSA obtained a favorable first-instance decision on the declaratory relief claim filed for fiscal period 2011. During December 2016, the Treasury concluded an inspection on Edenor for fiscal year 2014, during which Edenor had applied the criterion established by the “Hermitage” decision in its IGMP. Taking into consideration the different rulings favorable to the Company and its subsidiaries, and in line with the case law established by the “Hermitage” decision and the Treasury’s position on closing several verifications for periods where taxpayers do not have any taxable income (before the calculation of tax losses), in which the Treasury has waived its claims for these debts based on the unfavorable case law and in line with the criterion established by the Court, the Company has decided to derecognize the liabilities it had previously disclosed for the IGMP it should have assessed if the provisions of the Hermitage decision had not applied. On March 31, 2017, CTLL and EASA adhered to the tax moratorium set forth by Act No. 27,260 regarding claims for the 2011 period in the case of EASA, and the 2012, 2014 and 2015 periods in the case of CTLL. As of December 31, 2017, and due to the uncertainty on whether it may obtain a favorable decision, the Company keeps a $ 97 million in the line “Income tax liability and minimum notional income tax non-current” for the fiscal periods in which no tax losses have been evidenced. As of December 31, 2016 the minimum notional income tax provision amounted to $ 97 million, including compensatory interest. 38.2.4 Distribution Segment Legal action brought by Edenor (“Edenor S.A. VS FEDERAL GOVERNMENT – MINISTRY OF FEDERAL PLANNING / PROCEEDING FOR THE DETERMINATION OF A CLAIM AND MOTION TO LITIGATE IN FORMA PAUPERIS”) On June 28, 2013, Edenor instituted these proceedings for the recognizance of a claim and the related leave to proceed in forma pauperis, both pending in the Federal Court of Original Jurisdiction in Contentious and Administrative Federal Matters No. 11 – Clerk’s Office No. 22. Purpose Procedural stage of the proceedings Regarding the motion to litigate in forma pauperis that was filed on July 2, 2013, the discovery period has ended and the period for the parties to put forward their arguments on the merits of the evidence produced has begun. At the date of issuance of these financial statements, the procedural time-limits in this incidental motion, as those in the main proceedings, continue to be suspended. Conclusion |
39. LEASES
39. LEASES | 12 Months Ended |
Dec. 31, 2017 | |
Leases | |
LEASES | 39.1 Operating a. As lesee The features that these assignments of use have in common are that payments (installments) are established as fixed amounts; there are neither purchase option clauses nor renewal term clauses (except for the assignment of use contract of the Energy Handling and Transformer Center that has an automatic renewal clause for the term thereof); and there are prohibitions such as: transferring or sub-leasing the building, changing its use and/or making any kind of modifications thereto. All operating assignment of use contracts have cancelable terms and assignment periods of 2 to 13 years. Among them the following can be mentioned: commercial offices, two warehouses, the headquarters building (comprised of administration, commercial and technical offices of Edenor), 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. As of December 31, 2017, 2016 and 2015, future minimum payments with respect to operating leases of use are as follow: 12.31.2017 12.31.2016 12.31.2015 2016 - - 48 2017 - 41 20 2018 84 8 6 2019 84 9 4 2020 35 6 - 2021 3 2 - Total future minimum lease payments 206 66 78 Total expenses for operating leases of use for the years ended December 31, 2017 and 2016 are $ 85 million and $ 68 million, respectively. a. As lessor Edenor has entered into operating assignment of use contracts with certain cable television companies granting them the right to use the poles of Edenor’s network. Most of these contracts include automatic renewal clauses. As of December 31, 2017, 2016 and 2015, future minimum collections with respect to operating assignments of use are as follow: 12.31.2017 12.31.2016 12.31.2015 2016 - - 91 2017 137 109 85 2018 137 109 - 2019 131 103 - Total future minimum lease collections 405 321 176 Total income from operating assignments of use for the years ended December 31, 2017 and 2016 is $ 131 million and $ 108.2 million, respectively. 39.2 Financial Corresponds to the financing granted to TGS for the sale of certain properties, plant and equipment belonging to the Oil and Gas business segment. This agreement was entered into in August 11, 2016 and consists of the collection of 119 monthly installments of US$ 623 thousand and a purchase option for the same amount payable at the end of the 120 months of contract life. As of December 31, 2017, this credit is included in other current and non-current receivables in an amount of $ 72 million and $ 89 million, respectively. |
40. OPERATIONS IN HYDROCARBON C
40. OPERATIONS IN HYDROCARBON CONSORTIUMS | 12 Months Ended |
Dec. 31, 2017 | |
Operations In Hydrocarbon Consortiums | |
OPERATIONS IN HYDROCARBON CONSORTIUMS | 40.1 General considerations The Company is jointly and severally liable with the other participants for meeting the contractual obligations under these arrangements. The production areas in Argentina are operated pursuant to concession production agreements with free hydrocarbons availability. According to Law No.17,319, royalties equivalent to 12% of the wellhead price of crude oil and natural gas are paid in Argentina. The wellhead price is calculated by deducting freight and other sales related expenses from the sale prices obtained from transactions with third parties. This rate may increase from 3% to 4% depending to the producing jurisdiction and market value of the product. 40.2 Oil and gas areas and participation in joint-operations As of December 31, 2017, the Company and associates are part of the joint operations and consortia for the exploration and production of oil and gas as indicated below: Participation Duration Up To Name Note Location Direct Indirect Operator Argentine production 25 de Mayo - Medanito S.E. (g) Río Negro 100.00% - PAMPA 2,026 Jagüel de los Machos (g) Río Negro 100.00% - PAMPA 2,025 Bajada del Palo (g) Neuquén 3.85% 43.07% PELSA 2,025 Río Neuquén (g) Río Negro and Neuquén 33.07% - YPF 2027/2051 Entre Lomas (g) Río Negro and Neuquén 3.85% 43.07% PELSA 2,026 Sierra Chata Neuquén 45.56% - PAMPA 2,023 El Mangrullo Neuquén 100.00% - PAMPA 2,025 La Tapera - Puesto Quiroga Chubut 35.67% - Tecpetrol 2,027 El Tordillo Chubut 35.67% - Tecpetrol 2,027 Aguaragüe Salta 15.00% - Tecpetrol 2023/2027 Gobernador Ayala (a) Mendoza 22.51% - Pluspetrol 2,036 Charco del Palenque - Jarilla Quemada (g) Río Negro 3.85% 43.07% PELSA 2034/2040 Anticlinal Neuquén 15.00% - YPF 2,026 Estación Fernández Oro (e) Río Negro 15.00% - YPF 2,026 Rincón del Mangrullo (e) Neuquén 50.00% - YPF 2,051 Senillosa (f) Neuquén 85.00% - PAMPA 2,040 Foreign Oritupano - Leona Venezuela - 22.00% PDVSA 2,025 Acema Venezuela - 34.49% PDVSA 2,025 La Concepción Venezuela - 36.00% PDVSA 2,025 Mata Venezuela - 34.49% PDVSA 2,025 Argentine exploration Parva Negra Este Neuquén 42.50% - PAMPA 2,018 Enarsa 1 (E1) (c) Argentine Continental Shelf 25.00% - YPF - Enarsa 3 (E3) (c) Argentine Continental Shelf 35.00% - PAMPA - Chirete Salta 50.00% - High Luck Group Limited 2,017 Río Atuel Mendoza 33.33% - Tecpetrol 2,018 Borde del Limay (b) Neuquén 85.00% - PAMPA 2,014 Los Vértices (b) Neuquén 85.00% - PAMPA 2,014 Veta Escondida y Rincón de Aranda Neuquén 55.00% - PAMPA 2,027 (a) The granting of the concession is in progress and the term will be 25 years from such granting. (b) It is in process of returning to Gas y Petróleo del Neuquén SA (“GyP”, permit holder). (c) The Company, in compliance with section 5.2 of the respective partnership agreements, informed to the partners of Enarsa 1 and Enarsa 3, its decision not to participate in retraining them in exploration permits according to section 30 of Law 27.007. (d) Within the concession agreement renegotiation with the Province of Río Negro, it was agreed to assign to EDHIPSA 5% of the rights and obligations inherent to the production concession in Rio Neuquén area in the Province of Río Negro, to be assumed in equal parts by the partners. (e) The 15% interest in the assets corresponds to 12 wells in the Estación Fernandez Oro area and 10 wells in the Anticlinal area. (f) The company is currently conducting a process for the total reversal of the area. (g) In January 2018, the Company decided to sell these interests (Note 1). 40.3 Production concession in the Veta Escondida area On April 4, 2012 by the sanction of the Provincial Decree No. 563/12, Petrobras Argentina was notified of a decision of the government of the Province of Neuquén to terminate the production concession in the Veta Escondida area. The Company has sought relief alleging that it has complied with all requirements under the concession and that it did not commit any breach which would support the decision adopted by the Government of Neuquén. As of the date of these financial statements, the parties are negotiating a solution to the conflict taking into account the current situation of the industry and market. 40.4 New concession and changes in working interest oil and gas areas 40.4.1 Parva Negra Area Petrobras had submitted a request for an exploitation concession in Parva Negra area, holding a 100% interest. In 2014, Petrobras renegotiated its rights on the area and entered into a joint operation agreement with GyP, holder of the Parva Negra Este exploration permit, with GyP having a 15% interest and Petrobras (operator) having a 85% interest. Regarding that circumstance, the Executive Branch of the Province of Neuquén, through Decree No. 575/2014, approved the joint operation agreement (UTE) for Parva Negra Este area, while Decree No. 1600/2015 approved Amendment No. 1 whereby EXXONMOBIL Exploration Argentina is authorized to participate. The Company has a 42.5% stake and the remaining commitment to drill 1 horizontal branch of approximately 2,500 meters in an exploratory well, and, if successful, to complete and test it, until the end of 2017. With the drilling and completion of an approximate 2,500-meter horizontal branch in the PNE.x-1001(h) well and the corresponding trials which are currently under way, there are no outstanding commitments under this permit. A one-year extension was requested to conduct tests and trials in the well and evaluate its production behavior in order to conclude the evaluation of the permit. 40.4.2 Senillosa Area On May 18, 2016, and subject to certain conditions subsequent, PEPASA and Rovella agreed on the assignment of Rovella’s 35% interest in the whole Senillosa joint venture in favor of PEPASA in consideration of the forgiveness of a debt it held with the company. Thus, PEPASA now holds an 85% interest in the Senillosa joint venture. Lastly, as of the date of these financial statements and as a result of the low pressure and production in the wells, the long-term production trial was terminated and the built facilities were dismantled. Therefore, PEPASA recorded an impairment of Property, Plant and Equipment in the amount of $ 35 million under “Exploration Expenses”. During fiscal year 2017, tasks for the abandonment of 12 wells were initiated, which will be concluded in the first semester of 2018. 40.4.3 Río Neuquén and Aguada de la Arena areas On October 14, 2016, the Company perfected the sale of its 33.33% interest in the “Río Neuquén” area concession and its whole interest in the “Aguada de la Arena” area concession to YPF. On October 27, 2016, the Company consummated also the sale to an affiliate of Petrobras Brazil of 33.6% of all rights and obligations under the concession over the Río Neuquén area and 100% of all rights and obligations in the Colpa and Caranda areas in Bolivia. 40.4.4 Río Neuquén area in the Province of Neuquén Pursuant to Decree No. 776/2016 passed on June, 13, 2016, the Executive Branch of the Province of Neuquén approved the Investment Memorandum of Agreement executed by Petrobras Argentina and such province, whereunder a 35-year non-conventional exploitation concession was granted over the Río Neuquén area, including a 5-year pilot development plan period. This agreement mainly provides that Petrobras will be under a duty to execute a pilot plan for the development of non-conventional hydrocarbons (tight gas) involving the drilling of 24 wells and the refurbishing of surface facilities from 2016 through 2020. Total investments for such period are estimated at US$ 346 million. The agreement provides for the payment of a fixed bond of US$ 5.7 million and a Corporate Social Responsibility Contribution in the amount of US$ 8.6 million. In addition, through a payment of $ 208 million, differences in interpretation concerning the sales tax in the proceedings pending before the Tax Bureau of the Province of Neuquén were finally settled. YPF S.A. has been the operator of the area, where Petrobras Operaciones S.A. has an interest, since 2016. 40.4.5 25 de Mayo-Medanito S.E. area in the Province of La Pampa On March 30, 2016, the Legislature of the Province of La Pampa enacted a law declaring “of strategic interest” the 25 de Mayo-Medanito S.E. area located in that province with the purpose of transferring its possession to the province after the expiration of the original term of the concession to Petrobras for 25 years. On October 29, 2016, the Province of La Pampa took possession of the 25 de Mayo-Medanito S.E area. As a result of the foregoing, the Company recognized a loss of $ 213 million, as of December 31, 2016 mainly related to environmental remediation and retirement obligations PEPASA and Pampetrol SAPEM entered into an operating services agreement for the area for a term of one year as from October 29, 2016 in consideration of a compensation equivalent to approximately 62% of the hydrocarbon production in the area. This exploitation concession belongs to Pampetrol, and the agreement has not granted the Company any rights or interests over it. On October 28, 2017, the rendering of the operating services terminated and the area began to be operated by Pampetrol SAPEM. The Company has performed all undertaken obligations, returned the facilities as and when required and in an operating status, and provided all the applicable environmental documentation. 40.4.6 Las Tacanas Norte area Under the Public Tender No 1/2017 - V Round, for the selection of companies interested in the exploration, development and eventual exploitation of the blocks located in the Province of Neuquén and concessional in favor of the Gas y Petróleo del Neuquén S.A. (‘GyP’), on November 1, 2017, the Board of Directors of GyP has proceed to award in favor of the Company for the offer summited for Las Tacanas Norte block. Las Tacanas Norte block has a 120 km2 surface and is adjacent to El Mangrullo block, which is currently operated by the Company. The accepted offer consists of a perforation of up to 8 wells with the objective toward Vaca Muerta formation, and other exploratory studies. The exploratory license is for a 4-year term (2018-2021). 40.4.7 Rincón del Mangrullo area On August 1, 2017, YPF entered into an Agreement with the Province of Neuquén for the awarding of an unconventional exploitation concession in the Rincón del Mangrullo area, which was approved by a provincial executive order. The main commitments of the Agreement are as follows: - A 35-year extension of the exploitation concession, - A commitment to pay a bond, a corporate social responsibility contribution and the stamp tax for a total amount of US$ 20 million, and - An investment commitment of US$ 150 million aiming to further the development of the Mulichinco formation (tight gas) and to explore the potential of the Lajas and Vaca Muerta formations. Although the Company will participate in this new unconventional concession in Rincón del Mangrullo jointly with YPF, its investment commitment will amount to 30% of the total amount agreed upon between YPF and the Province of Neuquén as PEPASA’s Agreement with YPF does not include the Vaca Muerta formation. 40.5 Investment Commitments In the Province of Río Negro, in the 25 de Mayo – Medanito, Jagüel de los Machos and Río Neuquén concessions, the Company committed to spend a total estimated amount of US$ 908 million in exploration and exploitation activities (US$ 451 million until 2017, US$ 266 million during the 2018-2020 period and US$ 191 million from 2021 onwards). Additionally, in Entre Lomas field concession, PELSA committed to spend a total estimated amount of US$ 492 million in exploration and exploitation activities as from the agreement’s effective date (US$ 173 million until 2017, US$ 140 million during the 2018-2020 period and US$ 179 million from 2021 onwards). In January 2018, the Company decided to sell its 58.88% interest in PELSA and its interests in the Entre Lomas, Bajada del Palo, Agua Amarga and Medanito / Jagüel de los Machos areas to Vista Oil & Gas (Note 1.5.2). 40.6 Exploratory well costs The following table provides the year end balances and activity for exploratory well costs, during the years ended December 31, 2017 and 2016: 12.31.2017 12.31.2016 12.31.2015 At the beginning of the year 274 113 30 Increase for subsidiaries acquisition - 227 - Increases 196 102 86 Transferred to development (177) (57) - Loss of the year (27) (111) (3) At the end of the year 266 274 113 Number of wells at the end of the year 7 7 6 40.7 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, 2017. 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 32,935 12,646 8,695 8,667 41,630 21,313 Total at 12.31.2017 32,935 12,646 8,695 8,667 41,630 21,313 (1) (2) |
41. ECONOMIC AND FINANCIAL SITU
41. ECONOMIC AND FINANCIAL SITUATION OF GENERATION, TRANSMISSION AND ENERGY DISTRIBUTION SEGMENTS | 12 Months Ended |
Dec. 31, 2017 | |
Economic And Financial Situation Of Generation Transmission And Energy Distribution Segments | |
ECONOMIC AND FINANCIAL SITUATION OF GENERATION, TRANSMISSION AND ENERGY DISTRIBUTION SEGMENTS | 41.1 Generation During the fiscal years ended December 31, 2017 and 2016, CPB recorded comprehensive losses for $ 120 million and $ 210 million, respectively. This is mainly due to: (i) a heavier financial burden due to the cessation of the capitalization of financial expenses corresponding to the portion of CAMMESA’s financing destined to the Technological Upgrade Works for units TV29 and TV30, which concluded in 2016 and 2017, respectively; (ii) certain sudden outages of both units; and (iii) the delay in their commissioning after the conclusion of the overhauls. However, CPB is starting to remedy this situation with the higher reliability and availability of turbines, as well as an improvement in the remuneration scheme set forth by SEE Resolution No. 19/2017. This allowed for the operating income to record a profit of $ 252 million. As of December 31, 2017, CPB’s working capital was negative in the amount of $ 375 million. It should be pointed out that CPB has recorded financing with affiliates in the amount of $ 449 million under “Loans”, which will be partially refinanced through future disbursements by CAMMESA under the Overhauls Financing Agreement and with the higher operating cash flow expected by the Company. Notwithstanding the foregoing, and according to the estimates made by CPB’s Management, there is no significant substantial doubt on CPB´s ability to continue operating as an on-going business. 41.2 Distribution of energy The measures adopted by the Federal Government, aimed at resolving the electricity rate situation of the electric power sector during 2016, together with the application of the RTI as from February 1, 2017 are making it possible to gradually restore Edenor’s economic and financial position; therefore, Edenor’s Board of Directors is optimistic that the new electricity rates will result in Edenor’s operating once again under a regulatory framework with clear and precise rules, which will make it possible to not only cover the operation costs, afford the investment plans and meet debt interest payments, but also deal with the impact of the different variables that affect Edenor’s business. As of December 31, 2017, Edenor’s comprehensive income results in a profit to $ 691 million, whereas the working capital totals $ 3.3 billion – deficit-, which includes the amount owed to CAMMESA for $ 4.7 billion (principal plus interest accrued as of December 31, 2017). Edenor’s equity and negative working capital reflect the deteriorated financial and cash position Edenor still has as a consequence of both the Federal Government’s delay in the compliance with certain obligations under the Adjustment Agreement and the constant increase in operating costs in prior fiscal years, which Edenor absorbed in order to comply with the execution of the investment plan and the carrying out of the essential operation and maintenance works necessary to maintain the provision of the public service, object of the concession, in a satisfactory manner in terms of quality and safety. Despite the previously described progress achieved with regard to the completion of the RTI process, at the date of issuance of these financial statements, the definitive treatment to be given, by the MINEM, to the effects resulting from the non-compliance with the Adjustment Agreement, including the level of penalties the remaining balances with CAMMESA and other effects caused by the partial measures adopted, has yet to be defined during the years prior to the validity of the new RTI. These issues, among other, are the following: i) the treatment to be given to the funds received from the Federal Government through the loans for consumption (mutuums) agreements entered into with CAMMESA for the fulfillment of the Extraordinary Investment Plan, granted to cover the insufficiency of the FOCEDE’s funds; ii) the conditions for the settlement of the balance outstanding with CAMMESA at the date of issuance of SEE Resolution No. 32/15; iii) the treatment to be given to the Penalties and Discounts whose payment/crediting is pending, determined by the ENRE, under the terms and during the term of validity of the Agreement Act unfulfilled by the National State. In this regard, on April 26, 2017 Edenor was notified that the MINEM had provided that, upon completion of the RTI process, the SEE -with the participation of the Under-Secretariat for Tariff Policy Coordination and the ENRE-, should determine in a term of 120 days whether any pending obligations existed until the effective date of the electricity rate schedules resulting from the RTI and in connection with the Adjustment Agreement entered into on February 13, 2006. Likewise, the treatment to be given to those obligations was also to be determined. Edenor has submitted the information requested by the MINEM in the framework of this requirement. At the date of issuance of these financial statements such situation is still pending resolution. |
42. OPERATIONS IN ECUADOR
42. OPERATIONS IN ECUADOR | 12 Months Ended |
Dec. 31, 2017 | |
Operations In Ecuador | |
OPERATIONS IN ECUADOR | As from 2006 the Ecuadorian government implemented far-reaching tax and regulatory reforms in connection with hydrocarbon activities, which involved material changes in the conditions set forth at the time of execution of participation agreements. Amendatory Agreements and Law amending the Hydrocarbon Law On October 31, 2008, EcuadorTLC S.A., Teikoku Oil Ecuador and Petroecuador, among others, executed the Amendatory Agreements regulating the operation of Block 18 and Palo Azul while the parties negotiated the migration to a new contract modality. On July 26, 2010, the amendment to the Hydrocarbon Law in force was approved by operation of law, which provided for, among other things, the obligation to migrate to a new contract modality before November 24, 2010. As a result of the negotiation process mentioned above, the Company decided not to accept the final proposal received from the Ecuadorian government, as this is insufficient to migrate to Service Agreements in Block 18 and Palo Azul Unified Field. Consequently, through Resolution dated November 25, 2010 the Hydrocarbon Secretary notified EcuadorTLC S.A. the termination of the Participation Agreements and instructed Petroamazonas EP to undertake the operational transition process. Section 9 of the Amendatory Agreements indicates that the Ecuadorian government must compensate the terminated parties in an amount equivalent to unamortized investments adjusted by a variable rate and provides for a period of time for the Ecuadorian government and the terminated parties to work out the details of the termination payment. On March 18, 2011, the Hydrocarbon Secretary issued Official Notice No. 626 to inform the Company that it was analyzing and structuring a new regulatory framework to determine a settlement price for the termination, to be applied instead of the provisions of the Amendatory Agreements. On April 11, 2011, the Company filed an answer to the Official Notice and rejected the terms thereof claiming these did not comply with the conditions set forth in the Amendatory Agreements by the parties concerned, which conditions may not be unilaterally modified. In this respect, the Company informed the Hydrocarbon Secretary that it would continue to seek compliance with the terms of the Amendatory Agreements. On December 9, 2011, Petrobras Argentina served a notice on the Ecuadorian government (Trigger Letter) informing the existence of a dispute under the terms of the Treaty for the Promotion and Reciprocal Protection of Investments previously entered into between Argentina and Ecuador. The Treaty, implies the opening of a negotiation period prior to a possible arbitration to seek enforcement of the provisions of the Amendatory Agreements. On June 21, 2013, not having reached an agreement with the Ecuadorian government, EcuadorTLC SA, Cayman International Exploration Company and Teikoku Oil Ecuador, members of the joint operation, submitted to the Ecuadorian Goverment a letter of notification of a dispute under the terms of the Amendatory Agreements starting their decision to submit the dispute to international arbitration under the arbitration Rules of the United Nations Commission on International Trade Law. Finally, on February 26, 2014 the request for arbitration against Ecuador and EP Petroecuador, was presented in the above terms. On January 16, 2018, the Court issued the award determining a settlement value of US$515 million, of which US$176 million are payable to EcuadorTLC S.A., based on its participation in the block. Even though the parties may file a plea of nullity before the Courts of the City of Santiago de Chile within 3 months after the service of notice of the award, they have begun to negotiate the conditions to cancel the settlement. As of December 31, 2017 the Company has recorded $ 998 million to be recovered from the Ecuadorian State in accordance with the provisions of the Amendments Agreement, disclosed in Other non-current receivables. Such amount does not include the calculation of the update provided for in such agreements since, as of December 31, 2017, it was not possible to determine with certainty the applicable adjustment rate. Crude Oil Transportation Agreement with OCP The Company holds a contract with OCP, whereby it assumed a commitment to an oil transport capacity of 80,000 barrels/day for a term of 15 years counted as from November 10, 2003. The transport contract is a “Ship or Pay” contract, so the Company must meet its contractual obligations for the total volume agreed upon, regardless of the real volume transported, and has to pay, the same as the other producers, a rate that covers the operating costs and financial services of OCP, among others. EcuadorTLC has the right to sell the transport capacity in the heavy crude oil pipeline (OCP) to mitigate the negative impact of its non-use. Periodically, the Company negotiates the sale of the hired transport capacity. On December 31, 2008, the Company entered into a contract with Petroecuador whereby the Ecuadorian State assumed a commitment to charge, effective January 1, 2009, the available crude owned by it and transported through the heavy crude oil pipeline to the oil transport capacity hired by the Company, up to a maximum volume of 70,000 barrels/day. In addition, the Company sold transport capacity of approximately 8,000 barrels/day of oil for the period from July 2004 to January 2012. As a result of the contract non-compliance by the buyers, the Company is making the pertinent claims. Lastly, 40% of the net contractual commitment resulting from the above had been assumed by Teikoku Oil Ecuador, as consideration for the transfer to this company of the 40% interest in Block 18 and Palo Azul in October 2008. In the third quarter of 2015, the Company, through Petrobras Bolivia Internacional S.A., reassumed the obligations previously assigned to Teikoku Oil Ecuador relating to the mentioned agreement and received a US$ 95 million payment. As of December 31, 2017 the Company carries a liability for the net transport capacity hired from OCP, in current provisions for $ 389 million. The premises used in calculation of the provisions mainly include the estimate of the applicable rate and the transport capacity used by third parties. The discount rates used in the measurement consider the type of liability in question, the business segment and the country where the transactions are conducted. In the assessment of liabilities as of December 31, 2017, the Company reviewed the assumptions used for the calculation based on the progress in the contractual renegotiations, which resulted in a $ 150 million net profit under “Other operating income”. No additional obligations resulting from contractual renegotiations are estimated as of December 31, 2017. In January 2018, EcuadorTLC assigned to PEO a transportation capacity of 10,000 barrels/day. In consideration thereof, EcuadorTLC will pay to PEO US$ 2.9 million so that PEO may cancel the commitments associated with the transportation capacity. To afford this compensation, EcuadorTLC will receive a loan from the Company. In January 2018 PEO declared the Equity Expropriation Event, whereby, under certain circumstances stipulated in the agreement, the Company, in its capacity as guarantor, will bear the payments for the capital charges associated with the assigned transportation capacity. The Company must hold collaterals to ensure compliance with its financial commitments under the Ship or Pay transport contract with OCP and the commitments related to OCP trade payables. The collaterals, falling due in December 2018, will be gradually released in the same proportion as those commitments become extinguished. As of December 31, 2015, the Company holds collaterals for approximately US$ 23 million, which are disclosed under “Other current receivables” in the line item “Guarantee deposits”. The Company is required to renew or replace the collaterals as they fall due; otherwise, those amounts shall be paid in cash. Investment in Oleoductos de Crudos Pesados (OCP) - Ecuador The Company has a 11.42% equity interest in OCP, an oil pipeline in Ecuador that has a transportation capacity of 450,000 barrels/day. OCP has negative equity as a result of certain tax assessments in favor of the Government of Ecuador in issues where OCP and the Ecuadorian Treasury have differences in interpretation. However, and since the Company has not made any capital contributions or financial assistance commitments to OCP, this shareholding has been valued at zero. |
43. REGULARIZATION REGIME (MORA
43. REGULARIZATION REGIME (MORATORIUM) | 12 Months Ended |
Dec. 31, 2017 | |
Regularization Regime Moratorium | |
REGULARIZATION REGIME (MORATORIUM) | Between the 29 and the 31 of March 2017 As the adhesion to the regularization regime established benefits of releasing tax fines and reducing compensatory interests, the Company has recorded on March 31, 2017 a net gain after income tax effects of $335 million . |
44. PROFIT DISTRIBUTIONS
44. PROFIT DISTRIBUTIONS | 12 Months Ended |
Dec. 31, 2017 | |
Profit Distributions | |
PROFIT DISTRIBUTIONS | Dividends In accordance with Law No. 25,063, passed in December 1998, dividends distributed in cash or in kind, in excess of accumulated tax profits at the end of the year immediately before the date of payment or distribution, will be subject to a 35% income tax withholding in a single and final payment. To such effect, income to be considered in each fiscal year will be that resulting from adding to the specific income determined pursuant to the general provisions of the Income Tax Act the dividends or earnings from other companies not computed within the determination of such income during the same fiscal periods. The distribution of dividends is made based on the Company’s Stand-Alone Financial Statements. |
45. COMPENSATION PLANS
45. COMPENSATION PLANS | 12 Months Ended |
Dec. 31, 2017 | |
Compensation Plans | |
COMPENSATION PLANS | 45.1. Company-Value Compensation - PEPASA On November 6, 2013, PEPASA’s Extraordinary General Meeting of Shareholders resolved to approve a variable and contingent compensation to certain officers equivalent to 7% of the capital stock after the Company’s capital stock increase, valued based on the difference between the share’s market value at the time of exercising the right and a given value of US$ 0.1735 per share determined at the exact moment of the capital stock increase. On January 13, 2014, the capital stock increase was carried out and the rights granted to Officers to receive the Company-Value Compensation became effective. The variable remuneration may be required by officers as follows: 1) 25% as from June 2015 2) 7.14% as from December 2015 3) 32.15% as from June 2016 4) 35.71% as from June 2017 The given right may be monetized at any time from the date of effective enforcement until November 15, 2020 (by 5%) and 11 January 2021 (for the remaining 2%) over 7% of the share capital calculated according to what was detailed in the first paragraph of the note. The fair value of the Option has been measured according to the Black-Scholes valuation model. The main variables considered in such model were the following: 1) 54.3% volatility based on the volatility of the shares of other comparable companies; 2) 1,6886% risk-free U.S. dollars interest rate; Since its organization, PEPASA s growth and performance has far exceeded all initially defined metrics, parameters, and development and business plans. Therefore, and in view of its officers' significant contribution to meeting such goals, on December 28, 2015, PEPASA entered into an amendment to the compensation agreement providing for the full and irrevocable accrual of the variable remuneration to be collected by officers regarding the percentages which are not yet due effective as from that date, without this affecting the previously described enforceability. On January 18, 2017, PEPASA's executives requested the monetization of a significant part of the right due at that date, which was canceled by the Company on January. 45.2 Stock-based Compensation Plan – Certain officers and other key staff On February 8, 2017, the Company’s Board of Directors approved the creation of a stock-based compensation plan and the first Specific Program (2017-2019), 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. The first Specific Program was established for a three-year period, between 2017 and 2019, and considers the compensation period comprised between August 1 and December 31, 2017, plus the assigned bonus, as the basis for calculating the number of shares, with one-third vesting each year, which will be awarded together with the payroll for April of the year following the vesting date. On April 7, 2017, the Company's Shareholders’ Meeting ratified the approval of the Stock-based Compensation Plan by the Board of Directors on its February 8, 2017 meeting, 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, provided the employment relationship continues at least as at each vesting date. As of the issuance date of these Financial Statements, the Company has: (i) determined that 383,198 treasury shares should be delivered to employees pursuant to the first Specific Program (2017-2019 period), with vests in March 2017, 2019 and 2020, of 33%, 33% and 34%; and (ii) estimated a quantity of 672.898 treasury shares should be delivered to employees pursuant to the second Specific Program 2018-2020, with vests in March 2019, 2020 and 2021, of 33%, 33% and 34%. As of the issuance date of these Financial Statements, the Company has acquired 193,000 treasury shares and 92,280 treasury ADRs for an amount of $ 72 million, which will be destined to the implementation of the Company’s Stock-based Compensation Plan. 45.3. 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. These agreements are effective as of January 1, 2017. 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. 45.4. Share-based Compensation Plan - Edenor In the last months of fiscal year 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 the Company in an employment relationship with the latter and those who in the future are invited to participate, under the terms of section 67 of Law No. 26,831 on Capital Markets, after the effort made by the directors in the negotiation of the RTI. The plan was ratified and approved by the ordinary and extraordinary shareholders’ meeting of Edenor held on April 18, 2017. At the date of issuance of these condensed interim financial statements, Edenor awarded a total of 1,618,332 shares to executive directors and managers as additional remuneration for their performance in special processes developed during fiscal year 2016. 45.5 Opportunities Assignment Agreement On September 27, 2006, the Company entered into an Opportunities Assignment Agreement whereby certain officers undertook to offer the Company, on a priority basis, all investment opportunities above US$ 5 million they detect within the Company’s investment guidelines. In consideration of this commitment, the Company has granted these officers Warrants for up to 20% of its capital stock (the “Warrants Issuance Agreements”). On April 16, 2009, the parties agreed on the following modifications to the Opportunities Assignment Agreement and the Warrants Issuance Agreements: i) the term of the agreement was extended for five years, until September 27, 2014; ii) one-fifth of the Warrants will accrue annually, as from September 28, 2010 and until September 28, 2014, and Warrants will remain in effect for fifteen years as from the date of issuance. iii) their exercise price was set at US$ 0.27 per warrant. On September 28, 2014, the Opportunities Allocation Agreement terminated, having been complied of all stipulated obligations. Furthermore, as from the stated date all Company shares’ purchase options granted to the Officers may be actually exercised, according to the following expiration dates and exercise prices: Expiration Price of the year (U$S) Stock Options 04.26.2024 0.27 111,500,000 04.26.2024 0.27 150,000,000 04.26.2024 0.27 120,048,564 The fair value of these Warrants has been measured according to the Black-Scholes valuation model. The main variables considered in such model are the following: (i) a 27% volatility, based on the historical volatility of the Company; (ii) 3% dividends; and (iii) a 4.63% risk-free U.S. dollars interest rate. Regarding these Warrants, in 2015 the Company has recognized a total $ 266 million in profit and loss, with an offsetting entry in an equity reserve during the life of the Opportunities Assignment Agreement. On November 23, 2015, the Company received a notification from Merrill Lynch, Pierce, Fenner & Smith Incorporated, which, acting as attorneys in fact for the holders of all warrants, formally communicated the decision to exercise, conditional upon the meeting of certain conditions, all warrants against the payment of the set exercise price. In furtherance of the obligations under the Warrants Issuance Agreements, on December 1, 2015, against the payment of US$ 103,018,112, that is US$ 0.27 per common share or its equivalent in pesos, the Company issued 381,548,564 new common shares in the form of American Depositary Shares (“ADS”). Therefore, the Company recognized in its Statement of Changes in Shareholders’ Equity additional paid-in capital in the amount of $ 883 million and a $ 266 million decrease in reserves. The movements in the number of Warrants and their respective average exercise prices are detailed below: 12.31.2015 Stock options Average price of the year in US$ At the beginning 381,548,564 0.27 Executed (381,548,564) 0.27 At the end - - |
46. INCIDENT AT CENTRAL T_RMICA
46. INCIDENT AT CENTRAL TÉRMICA GENELBA | 12 Months Ended |
Dec. 31, 2017 | |
Incident At Central Trmica Genelba | |
INCIDENT AT CENTRAL TÉRMICA GENELBA | On September 22, 2017 a major incident occurred in the TG11 unit, which makes up Central Térmica Genelba’s combined cycle plant, and which resulted in severe damage to the turbine’s generator. Following the incident, the combined-cycle generation capacity has been reduced by 50% (330 MW). After evaluating the causes of the failure, the Company, together with the generator’s manufacturer (SIEMENS), started the works for the installation of a new generator. On January 5, 2018, works concluded and TG11 became operative again, thus regaining 100% of the combined cycle capacity. Following this event, the Company is making all necessary filings with insurance companies to collect the compensations for the damages sustained as a result of the failure and to minimize losses in connection with breaches of its availability commitments. |
47. NEW GENERATION PROJECTS
47. NEW GENERATION PROJECTS | 12 Months Ended |
Dec. 31, 2017 | |
New Generation Projects | |
NEW GENERATION PROJECTS | Under the National Government’s call for the expansion of the generation offer, the Company participates in the following thermal generation closing projects: 47.1 2014 Agreement for the Increase of Thermal Generation Availability On September 5, 2014, the Company, together with its generation subsidiaries, executed a thermal generation availability increase agreement with the National Government through the application of LVFVDs and the generators’ own resources. The project consisted of a 120 MW expansion in CTLL’s power plant generation capacity through the installation of two 8 MW engine generators and a 105 MW high-efficiency gas turbine. On July 15, 2016, the new 105 MW high-efficiency gas turbine was commissioned for service, whereas the second project is currently under construction, and its commissioning is expected for May 2018. 47.2 SE Resolution No. 21/2016 The following projects were awarded under the call for bids made by the National Government to parties interested in offering new thermal power generation capacity pursuant to SE Resolution No. 21/2016. For each of the awarded projects, the Company has entered 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. 47.2.1 Central Térmica Parque Pilar (“CT Pilar”) This project, which consisted of the construction of a new power plant in the Pilar Industrial Complex (located at Pilar, Province of Buenos Aires), is made up of 6 cutting-edge and high-efficiency Wärtsilä engine generators with a total 100 MW capacity and the possibility to run on natural gas or fuel oil. The total investment was approximately US$ 103 million. On August 31, 2017, CAMMESA granted the commercial commissioning of CT Pilar, which became operative as from that date. 47.2.2 Extension of Central Térmica Loma de la Lata The project consists of the expansion of CTLL’s power plant generating capacity through the installation of a new GE aeroderivative gas turbine (model LMS100) with a gross generation capacity of 105 MW. The investment amounted to approximately US$ 90 million. On August 5, 2017, CAMMESA declared the commercial commissioning of the new gas turbine, which became operative as from such date. 47.2.3 Central Térmica Ingeniero White (“CT I. White”) The project consisted of the installation of a new power plant in I. White (Bahía Blanca, Province of Buenos Aires) with similar characteristics as that mentioned in Note 47.2.1. The total investment was approximately US$ 90 million. On December 21, 2017, CAMMESA declared the commercial commissioning of CT I. White, which became operative as from that date. 47.3 SEE Resolution No. 420/2017 Under the call by the National Government to parties interested in developing projects for co-generation and the closing to combined cycles over existing equipment, on October 18, 2017 the SEE, through Resolution No. 926-E/17, awarded Genelba Plus’ closing to combined cycle, which will add a 383 MW capacity over Genelba’s power plant existing facilities. The Genelba Plus’ closing to combined cycle project consists of the installation of a new gas turbine, a steam turbine, and several enhancement works over the current Genelba Plus gas turbine, which altogether will complete the second combined cycle at Genelba, with a total gross power capacity of 552 MW. The estimated investment amounts to US$ 350 million. Siemens and Techint will be in charge of the equipment supply, and the construction and commissioning of the project on a turnkey basis. Its commissioning at open cycle is expected for the second quarter of 2019, and as closed cycle for the second quarter of 2020. 47.4 RenovAr Program (Round 1) Under the call by the National Government to parties interested in developing projects for generation from renewable sources, on October 7, 2016 the MEyM, through Resolution No. 213/16, awarded the Corti wind farm project submitted by Greenwind. On January 23, 2017, the Company entered into a wholesale power purchase agreement with CAMMESA for a term of 20 years. The project consists of the installation of a 100 MW wind farm in Bahía Blanca, Province of Buenos Aires. The total investment will amount to approximately US$ 135 million. Vestas will be in charge of the equipment supply, and the construction and commissioning of the project on a turnkey basis. Its commercial commissioning is expected for May 2018. 47.5 SEE Resolution No. 281/2017 – Renewable MAT Under the new regulations for the Renewable MAT, which production will be targeted at large users under power supply agreements between private parties, on January 29, 2018 CAMMESA granted a 50 MW priority to the “Pampa Energía” wind farm and a 28 MW dispatch priority to “de la Bahía” wind farm. These projects will be developed in the Province of Buenos Aires, near the City of Bahía Blanca, and together will have a 100 MW power capacity. The total investment amounts to approximately US$ 140 million. The priority allocation will ensure dispatch for both wind farms and therefore, will guarantee support to our future clients choosing to comply with their obligation to meet their electricity demand with renewable sources of energy from our wind farms. |
48. TAX REFORM
48. TAX REFORM | 12 Months Ended |
Dec. 31, 2017 | |
Tax Reform | |
TAX REFORM | On December 29, 2017 the National Executive Branch passed Act No. 27430 – Income Tax. This Act introduced several modifications in the income tax treatment, the key components of which are described below: 48.1 Income tax 48.1.1. Income tax rate The income tax rate for Argentine companies will be gradually reduced from 35% to 30% for fiscal years beginning as from January 1, 2018 until December 31, 2019, and to 25% for fiscal years beginning as from January 1, 2020. The effect of the application of the income tax rate changes on deferred tax assets and liabilities pursuant to the above-mentioned tax reform was recognized, based on their expected realization year, in “Income tax rate change” under Income tax and Minimum presumed income tax of the Consolidated Statement of Comprehensive Income (Note 14). 48.1.2. Tax on dividends The tax on dividends or earnings distributed by, among others, Argentine companies or permanent establishments to individuals, undivided estates or beneficiaries residing abroad is introduced based on the following considerations: (i) dividends resulting from earnings accrued during fiscal years beginning as from January 1, 2018 until December 31, 2019, will be subject to a 7% withholding; and (ii) dividends resulting from earnings accrued during fiscal years beginning as from January 1, 2020 will be subject to a 13% withholding. Dividends resulting from benefits gained until the fiscal year prior to that beginning on January 1, 2018 will remain subject to the 35% withholding on the amount exceeding the untaxed distributable retained earnings (equalization tax’ transition period) for all beneficiaries. 48.1.3. Transfer prices Controls are established for the import and export of goods through international intermediaries different from the exporter at the point of origin or the importer at destination. Furthermore, the Act sets out the obligation to provide documentation allowing for the verification of the characteristics of the transaction for the import and export of goods and the export of commodities, in both cases when they are conducted through an international intermediary different from the exporter at the point of origin or the importer at destination. 48.1.4. Tax and accounting revaluation The Act provides that Companies may opt to make a tax revaluation of assets located in the country and subject to the generation of taxable earnings. The special tax on the revaluation amount depends on the asset, and will amount to 8% for real estate not accounted for as inventories, 15% for real estate accounted for as inventories, and 10 % for personal property and other assets. Once the option is exercised for a certain asset, all assets within the same category should be revalued. The tax result from the revaluation will not be subject to income tax, and the special tax on the amount of the revaluation will not be deductible from such tax. The Company is currently analyzing the impact of the above-mentioned option. 48.1.5. Adjustment The reform sets out the following rules for the application of the income tax inflation adjustment mechanism: (i) a cost adjustment for goods acquired or investments made during fiscal years beginning after January 1, 2018 taking into consideration the variations in the Wholesale Domestic Price Index (IPIM) published by the National Institute of Statistics and Censuses (INDEC); and (ii) the application of a comprehensive adjustment when the IPIM variation exceeds 100% in the 36 months preceding the closing of the fiscal period. The adjustment of acquisitions or investments made in fiscal years beginning as from January 1, 2018 will increase the deductible depreciation and its computable cost in case of sale. 48.2 Value-added tax Reimbursement of favorable balances from investments. A procedure is established for the reimbursement of tax credits originated in investments in property, plant and equipment which, after 6 months as from their assessment, have not been absorbed by tax debits generated by the activity. 48.3. Fuel tax Certain modifications are introduced to the fuel tax, incorporating a tax on the emission of carbon dioxide. The reform simplifies the fuel taxation structure, keeping the same tax burden effective prior to the reform. |
49. DOCUMENTATION KEEPING
49. DOCUMENTATION KEEPING | 12 Months Ended |
Dec. 31, 2017 | |
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 subsidiaries Edenor, CTG, CTLL, EASA and PEPASA 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. |
4. ACCOUNTING POLICIES (Policie
4. ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies Policies | |
New accounting standards, amendments and interpretations issued by the IASB effective as of December 31, 2017 and adopted by the Company | The Group has applied the following standards and/or amendments for the first time for their annual reporting period commencing January 1, 2017 - Amendments to IAS 7 "Statement of cash flows", - Amendments to IAS 12 “Income taxes”, y - Amendments to IFRS 12 “Disclosures of interests in other entities” (within improvements to IFRSs – 2014-2016 Cycle) The adoption of these modifications did not have any impact on the Company’s operating results or financial position. Additional information is disclosed in Notes 6 and 20 as a result of the application of disclosure requirements on changes in liabilities arising from financing activities and the clarification of the scope of the standard related to entity’s interest classified as held for sale in accordance with IFRS 5 was considered in Note 1, as a result, summarised financial information was not disclosed as it is not required. |
New accounting standards, amendments and interpretations issued by the IASB which are not yet effective and have not been early adopted by the Company | - IFRS 15 “Revenue from Contracts with Customers", issued in May 2014 and later in September 2015, effected date was amended for applying to annual period beginning on or after January 1, 2018. The standard addresses the principles for recognizing revenues and establishes the requirements for reporting about the nature, amount, timing an uncertainty of revenue and cash flows arising from contracts with customers. The basic principle implies the recognition of revenue that represent the transfer of goods or services to customers at an amount that reflects the consideration the entity expects to be entitled in exchange for those goods or services. The Company will elect to apply IFRS 15 only to contracts that are not completed at the date of initial application, recognizing the cumulative effect of the application as an adjustment to the opening balance of retained earnings as of January 1, 2018. Management has assessed the effects of applying IFRS 15 on the group’s financial statements regarding not completed contracts as of January 1, 2018. As a result of this assessment, the Company has not identified any differences associated with performance obligations identification or price allocation methodology which could affect the timing of future revenue recognition forward. Finally, no contract assets or contract liabilities to be separately presented under IFRS 15 have been identified. - IFRS 9 “Financial Instruments”: was amended in July 2014. This amended version covers all the phases of the IASB project to replace IAS 39 “Financial Instruments: Recognition and Measurement”. These phases are the classification and measurement of instruments, impairment and hedging. This version adds a new impairment model based on expected losses and some minor modifications to the classification and measurement of financial assets. This new version supersedes all previous versions of IFRS 9 and is effective for periods starting as from January 1, 2018. The Company has adopted the first phase of IFRS 9 as of the transition date. The Company will apply IFRS 9 amended retrospectively from January 1, 2018 with the practical expedients permitted under the standard, and comparative periods will not be restated. Pampa has reviewed its financial assets currently measured and classified at fair value through profit and loss or at amortized cost and has concluded that satisfy conditions to maintain classification; hence, IFRS 9’s modifications are not expected to affect the classification and measurement of financial assets. Regarding the new hedge accounting model which, in general terms, allows more hedge relationships might be eligible for hedge accounting, in order to align the accounting with the related risk management practices, Pampa has not opted for the designation of any hedge relationships as of the issuance of these financial statements and it does not expect to make such designation; consequently, it does not expect any modifications resulting from the application of IFRS 9. As regards the new impairment model based on expected credit losses rather than incurred credit losses, based on the assessments conducted as of the issuance of these financial statements, Pampa expects an approximate 13% increase in the allowances for trade receivables and for other receivables. - IFRS 16 “Leases”: issued in January 2016 and replaces the current guidance in IAS 17. It defines a lease as a contract, or part of a contract, that conveys the right to use an asset (the underlying asset) for a period of time in exchange for consideration. Under this standard, lessees have to recognize a lease liability reflecting future lease payments and a ‘right-of-use asset’ for lease contracts. This is a significant change compared to IAS 17 under which lessees were required to make a distinction between a finance lease (on balance sheet) and an operating lease (off balance sheet). IFRS 16 contains an optional exemption for lessees in case of short-term leases and leases for which the underlying asset is of low value assets. The IFRS 16 is effective for annual periods beginning on or after 1 January 2019. The Company is currently analyzing the impact of its application. - IFRS 2 “Share based payments”: amended in June 2016 to clarify the measurement basis for cash-settled share-based payments and the accounting for modifications that change an award from cash-settled to equity-settled. It also introduces an exception to IFRS 2 principles by requiring an award to be treated as if it was wholly equity-settled, where an employer is obliged to withhold an amount for the employee’s tax obligation associated with a share-based payment and pay that amount to the tax authority. It is effective for annual periods beginning on or after January 1, 2018. The Company estimates that these amendments will not have an impact on the Company’s operating results or financial position. - IFRIC 22 “Foreign Currency Transactions and Advance Consideration”: issued in December 2016. The interpretation addresses how to determine the date of the transaction for the purpose of determining the exchange rate to use on initial recognition of the related asset, expense or income related to an entity that has received or paid an advance consideration in a foreign currency. The date of the transaction is the date on which an entity initially recognizes the non-monetary asset or non-monetary liability arising from the payment or receipt of advance consideration. It is effective for annual periods beginning on January 1, 2018. The Company estimates that this interpretation will not have an impact on the Company’s operating results or financial position. - Improvements to IFRSs – 2014-2016 Cycle: amendments issued in December 2016 that are effective for periods beginning on or after January 1, 2018. The Company estimates that these amendments will not have an impact on the Company’s operating results or financial position. - - - IFRS 9 "Financial instruments": application guidance modified in October 2017, in relation to the classification of financial assets in the case of contractual terms that change the timing or amount of contractual cash flows to determine whether the cash flows that could arise due to that contractual term are sol ely payments of principal and interest on the principal amount. It is effective for annual periods beginning on or after January 1, 2019, early adoption is permitted. The Company is analyzing the impact of its application, however, it estimates that it will not have any impact on the Company´s results of operations or financial position. - IAS 28 "Investments in associates and joint ventures": amended in October 2017. Clarifies IFRS 9 applies to other financial instruments in an associate or joint venture to which the equity method is not applied. It is applicable to annual periods beginning on or after January 1, 2019, early adoption is permitted. The Company is analyzing the impact of its application, however, it estimates that it will not any impact on the Company’s results of operations or financial position. - Improvements to IFRSs – 2015-2017 Cycle: amendments issued in December 2017 that are effective for periods beginning on or after January 1, 2019. The Company estimates that these amendments will not have an impact on the Company’s operating results or financial position. |
Principles of consolidation and equity accounting | 4.3.1 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. They are deconsolidated from the date that control ceases. The acquisition method of accounting is used to account for business combinations by the group (see Note 4.3.5 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 where necessary to ensure consistency with the policies adopted by the Group. Since the functional currency of some subsidiaries is different from the functional currency of the Company, exchange gains or losses arise from intercompany operations. Those exchange results are included in “Financial results” in the Consolidated Statement of Comprehensive Income. 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. 4.3.2 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 4.3.4 below), after initially being recognized at cost. 4.3.3. Joint arrangements Under IFRS 11 “ Joint Arrangements” Joint operations The Company recognizes its direct right to the assets, liabilities, revenues and expenses of joint operations and its share of any jointly held or incurred assets, liabilities, revenues and expenses. These have been incorporated in the financial statements under the appropriate headings. Joint ventures Interests in joint ventures are accounted for using the equity method (see Note 4.3.4 below), after initially being recognized at cost in the Consolidated Statement of Financial Position. 4.3.4. 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 4.8. 4.3.5 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 either at fair value or 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. 4.3.6. 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. In the aggregation of segments, the Company has primarily considered the nature of the regulatory framework of the Energy Industry in Argentina and product integration in the Company’s production process. |
Property, plant and equipment | Property, Plant and Equipment is measured following the cost model. It is recognized at 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. The depreciation methods and periods used by the group are described below. 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 proceeds with the carrying amount. 4.5.1 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 The depreciation method is reviewed, and adjusted if appropriate, at the end of each year. |
Intangible assets | 4.6.1 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 the purpose of impairment testing, goodwill acquired in a business combination is allocated from the acquisition date to each of the acquirer’s cash-generating units 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. 4.6.2 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 and are amortized following the straight-line method based on each asset’s useful life, which corresponds to the life of each concession agreement. The concession agreement of Edenor, has a remaining life of 71 years, while the HIDISA and HINISA has a life of 22 years. 4.6.3 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 and 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. As of December 31, 2016, corresponds to the commercial contracts identified in the Refining and distribution segment with an average useful life of five years based, among other factors, on contractual agreements, consumer behavior and economic factors related to companies Combined. |
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. According to the successful efforts method of accounting, exploration 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. The initial estimated asset retirement obligations in hydrocarbons areas, 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. |
Impairment of non-financial 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. Other 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 (cash generating units or CGUs). Non-financial assets, other than goodwill, that have been impaired are reviewed for possible reversal of the impairment at the end of each reporting period. |
Foreign currency translation | 4.9.1 Functional and presentation currency Information included in the financial statements is measured in the functional and presentation currency of the Company, which is the currency of the primary economic environment in which the entity operates. The functional currency is Argentine peso, which is the Group’s presentation currency. IAS 29 "Financial reporting in hyperinflationary economies" requires for financial statements of an entity whose functional currency is the currency of a hyperinflationary economy, whether they are based on a historical cost approach or a current cost approach, to be stated in terms of the measuring unit current at the end of the reporting year. In general terms, by applying to non-monetary items the change in a general price index from the date of acquisition or the date of revaluation, as appropriate, to the end of the reporting period. In order to conclude about the existence of a hyperinflationary economy, the standard mentions certain indications to consider including a cumulative rate of inflation in three years that approaches or exceeds 100%. Despite the high inflation rates in Argentina, in recent years, considering that the INDEC WPI official publication was suspended from November to December 2015; the existence of other qualitative and quantitative indicators, such as the program established by the Argentine Central Bank to foster monetary stability aiming to induce a systematic and sustainable low inflation rate; and that the market has evidenced a downard trend in inflation rates during 2017, there is not enough evidence to conclude Argentina qualifies as a hyperinflationary economy pursuant to the criteria set forth in IAS 29 and accordingly, we have not restated financial information. Although the conditions necessary to qualify Argentine economy as hyperinflationary in accordance with the provisions of IAS 29 have not been met, and considering professional and regulatory limitations for the preparation of adjusted financial statements as of December 31, 2017, certain macroeconomic variables affecting the Company's business, such as wage costs and purchase prices, have experienced significant annual variations, and as a result should be considered in the evaluation and interpretation of the financial position and results presented by the Company in these financial statements. 4.9.2 Transaction and balances Foreign currency transactions are translated into the functional currency using the exchange rates as of at the date of the transaction. Foreign exchange gain and loss resulting from the settlement of any transaction and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the income statement, unless they have been capitalized. The exchange rates used are as follows: buying rate for monetary assets, selling rate for monetary liabilities, average rate at the end of the year for balances with related parties, and transactional exchange rate for foreign currency transactions. 4.9.3 Group companies Results and financial position of subsidiaries and associates that have a different functional currency from the presentation currency are translated into the presentation currency as follows: - assets and liabilities are translated using the closing exchange rate; - gains and losses are translated using the exchange rates prevailing at the date of the transactions. The results from the remeasurement process into the functional currency are recorded in line “Financial results” of the Consolidated Statement of Income. The results from the remeasurement process into the functional currency to presentation currency transactions are recognized in “Other Comprehensive Income”. When an investment is sold or disposed of, in whole or in part, the related differences are recognized in the Consolidated Statement of Income as part of the gain/loss on the sale or disposal. |
Financial assets | 4.1.1 Classification 4.10.1.1 Financial assets at amortized cost Financial assets are classified and measured at amortized cost only if the following criteria have been met: i. the objective of the Group’s business model is to hold the asset to collect the contractual cash flows; ii. the contractual terms, on specified dates, have cash flows that are solely payments of principal and interest on the outstanding principal. 4.10.1.2 Financial assets at fair value If any of the above mentioned criteria has not been met, the financial asset is classified and measured at fair value through profit or loss. All equity investments are measured at fair value. For equity investments that are not held for trading, the Group can irrevocably choose at the moment of the initial recognition to present changes in fair value through other comprehensive income. The decision of the Group was recognizing changes in fair value through profit or loss. 4.10.2 Recognition and 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 recognized in profit or loss. A gain or loss on a debt investment that is subsequently measured at amortized cost and is not part of a hedging relationship is recognized in profit or loss when the financial asset is derecognized or impaired and through the amortization process using the effective interest rate method. The Group subsequently measures all equity investments at fair value. When the Group elects to present the changes in fair value in other comprehensive income, such changes cannot be reclassified to profit or loss. Dividends from such investments continue to be recognized in profit or loss as long as they represent a return on investment. The Company reclassifies financial assets if and only if its business model to manage financial assets is changed. 4.10.3 Impairment of financial assets Financial assets at amortized cost The Company assesses at each reporting date whether there is objective evidence that a financial asset or group of financial assets is impaired and if so, an impairment charge is recorded in the income statement. The amount of the impairment loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows (excluding future credit losses that have not been incurred) discounted at the financial asset’s original effective interest rate. If the financial asset has a variable interest rate, the discount rate for the calculation of the impairment loss is the currently effective interest rate under the contract. As a practical expedient, the Group may measure impairment on the basis of an instrument’s fair value using an observable market price. If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognized, the reversal of the previously recognized impairment loss is recognized in the statement of comprehensive income. 4.10.4 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. |
Income recognition | Interest income Interest income is recognized using the effective interest method. When a receivable is impaired, the group reduces the carrying amount to its recoverable amount, being the estimated future cash flow discounted at the original effective interest rate of the instrument, and continues unwinding the discount as interest income. Interest income on impaired loans is recognised using the original effective interest rate. Dividends Dividend on interests that are not accounted for using the equity method 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. However, the investment may need to be tested for impairment as a consequence. |
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. A loss allowance is recognized when there is objective evidence that the Company will not be able to collect its receivables at their original maturities or for the full amount, based on the evaluation of different factors, including significant customer’s financial difficulties, breach of contractual clauses, customer´s credit risk, historical trends and other relevant information. Receivables from CAMMESA, documented as LVFVDs, have been valued at their amortized cost, the maximum value of which is their recoverable amount at the period’s closing date. The amortized cost has been determined based on the estimated future cash flows, discounted based on a rate reflecting the time value of money and the risks inherent to the transaction. 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. The amounts thus determined are net of an allowance for the impairment of receivables. Any debt arising from the bills for electricity consumption that remain unpaid 7 working days after their due dates for small-demand (tariff 1) customers and 7 working days after due date for medium and large-demand (tariff 2 and 3) customers is considered a delinquent balance. The uncollectibility rate is determined per customer category based on the historical comparison of collections made and delinquent balances of each customer group. Additionally, and faced with temporary and/or exceptional situations, Edenor Management may redefine the amount of the allowance, specifying and supporting the criteria used in all the cases. 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 | 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. Changes in the measurement of derivative financial instruments designated as effective cash flow hedges are recognized in equity. Changes in the measurement of derivative financial instruments that do not qualify for hedge accounting or are not designated as hedges are recognized in the statement of income. The Company partially hedges its exchange rate risk mainly through the execution of forward contracts denominated in U.S. dollars. However, the Company has not formally designated privately negotiated derivatives as hedging instruments. Therefore, changes in their value are disclosed in “Foreign currency exchange difference”, under “Other financial results”. |
Inventories | This line item includes crude oil stock, raw materials, work in progress and finished products relating to the Refining and Distribution, 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 (or disposal group) 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 (or disposal group) 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. a. 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. b. 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. c. Legal reserve In accordance with the Argentine Commercial Companies Law No. 19550, 5% of the profit arising from the statement of comprehensive income for the year, prior years' adjustments, 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 outstanding capital. When for any reason, the amount of this reserve will be shorter, dividends may not be distributed, until such amount is made. d. 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. e. 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. f. 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, the amounts transferred from other comprehensive income and prior years' adjustments, according to IFRS. General Resolution No. 593/2011 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. g. Other comprehensive income It includes gains and losses from the remeasurement process of foreign operations and actuarial gains and losses for defined benefit plans and the related tax effect. h. 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 45 details the conditions applicable to the different compensation agreements, the payment conditions, 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”) - PEPASA: 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. - 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 and charged to profit or loss in the vesting period, or immediately if vested at the grant date. On the other hand, PEPASA accrued The Company recognizes a provision (liability) and an expense for this EBDA Compensation based on the previously mentioned formula. |
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. 4.19.1 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 Banco de la Nación Argentina 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. 4.19.2 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. 4.19.3 Particular matters The recorded liabilities for the debts with the FOTAE, the 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 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, whereas the balances of the loans for consumption (mutuums) are adjusted by a rate equivalent to the monthly average yield obtained by CAMMESA from its short-term investments. |
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. 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 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. In accordance with IFRIC 18 “Transfers of Assets from Customers”, the assets received are recognized by Edenor as Property, plant and equipment with a contra-account in deferred revenue, the accrual of which depends on the nature of the identifiable services, in accordance with the following: 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 | 4.22.1 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. 4.22.2 Defined benefit plans Labor costs liabilities are accrued in the periods in which the employees provide the services that trigger the consideration. The cost of defined contribution plans is periodically recognized in accordance with the contributions made by the Company. 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 and contingent liabilities | 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 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: i) 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 ii) 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 recognized. The Company discloses in notes to the 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. |
Revenue | Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed as revenue are net of discount and amounts collected on behalf of third parties. The Group recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the Group’s activities. The group bases its estimates on historical results, taking into consideration the type of customer, the type of transaction and the specifics of each arrangement. The revenue recognition criteria of the main activities of the Company include: i. From the power generation activity ii. From the electricity distribution activity Revenue from the electricity provided by Edenor to low-income areas and shantytowns is recognized to the extent that the Framework Agreement has been renewed for the period in which the service was rendered. Edenor also recognizes revenue from other concepts included in distribution services, such as new connections, reconnections, rights of use on poles, transportation of electricity to other distribution companies, etc. iii. From exploration and exploitation of oil and gas, petrochemicals and refining and distribution activities Revenues from oil and natural gas production in which the Company has a joint interest with other producers are recognized on the basis of the net working interest, regardless of actual assignment. Any imbalance between actual and contractual assignment will result in the recognition of an amount payable or receivable according to the actual share in production, whether above or below the production resulting from the Company’s contractual interest in the consortium. The Company performs diesel oil and gasoline sale transactions with other refining companies in different geographical areas to optimize the logistics chain. These transactions are disclosed on a net basis in the Consolidated statement of Comprehensive income (loss). Finally, the Company provides the service of hydrocarbon operation and production in exchange for a participation in the production of the hydrocarbon areas. |
Other Income - 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. 4.25.1 Recognition of higher cost The recognition of higher costs not transferred to the tariff, as well as the recognition established by SE Resolution No. 32/15 and the recognition of income due to the effect of the precautionary measures of the Municipalities of Pilar and La Matanza (Note 2.3) fall within the scope of IAS 20 “Accounting for Government Grants and Disclosure of Government Assistance” as they imply a compensation to cover the expenses and afford the investments associated with the normal provision of the public service, object of the concession. Their recognition is made at fair value when there is reasonable assurance that they will be collected and the conditions attached thereto have been complied with, i.e. provision of the service in the case of the recognition established in SE Resolution No. 32/15, and the ENRE’s approval and the SE’s recognition, by means of a Note or Resolution, in the case of the recognition of higher costs. Such concepts have been disclosed in the “Income recognition on account of the RTI – SE Resolution No. 32/15”, “Higher Costs Recognition - SE Resolution 250/13 and subsequent Notes” and “Recognition of income provisional measures MEyM Note N° 2016-04484723” line items under Other operating income in the Consolidated Statement of Comprehensive Income, recognizing the related tax effects. 4.25.2 Recognition of compensation for injection of surplus gas The recognition of income for the injection of surplus gas is covered by IAS 20 since it involves a compensation as a result of the production increase committed. This item has been disclosed under Compensation for Surplus Gas Injection, under Other operating income, in the Consolidated Statement of Comprehensive Income (loss). Furthermore, fiscal costs related to the program has been disclosed under Extraordinary Canon, under Other operating expenses, in the Consolidated Statement of Comprehensive Income (loss). |
Income tax and minimum notional income tax | 4.26.1 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 this 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 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 48), Venezuela, Ecuador, Bolivia, Spain and Uruguay are 35%, 50%, 22%, 25%, 25% and 25%, respectively. Additionally, payment of Bolivian-source income to beneficiaries outside Bolivia is levied with a 12.5% withholding income tax. 4.26.2 Minimum notional income tax The Company assesses the minimum notional income tax 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, 15/06/2010), 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. 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 | Leases of property, plant and equipment where the Group, as lessor, has transferred all the risks and rewards of ownership are classified as finance leases (Note 39.2). Finance leases are recognized at the lease’s inception at the fair value of the leased property or, if lower, the present value of the minimum lease payments. The corresponding rental rights, net of finance charges, are included in other current and non-current receivables. Each lease payment received is allocated between the receivable and finance income. The finance income is charged to the profit or loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the receivable for each period. The property, plant and equipment leased under finance leases is derecognized if there is reasonable certainty that the Group will assign ownership at the end of the lease term. Leases in which a significant portion of the risks and rewards of ownership are not transferred to the Group as lessee are classified as operating leases (Note 39.1.a). Payments made under operating leases (net of any incentives received from the lessor) are charged to profit or loss on a straight-line basis over the period of the lease. Lease income from operating leases where the Group is a lessor is recognised in income on a straight-line basis over the lease term (Note 39.1.b). The respective leased assets are included in the Consolidated Statement of Financial Position based on their nature. |
1. GENERAL INFORMATION AND GR56
1. GENERAL INFORMATION AND GROUP STRUCTURE (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
General Information And Group Structure Tables | |
Fair value of the acquisition | Purchase price allocation Cash payment 13,362 Total consideration transferred 13,362 Investments in joint ventures 3,407 (a) Investments in associates 777 (b) Financial assets at amortized cost 21,801 (c) Intangible assets 224 (d) Financial assets at fair value through profit and loss 653 (b) Financial assets at amortized cost 315 Trade and other receivables 7,256 (e) Inventories 3,072 Cash and cash equivalents 4,384 Non current assets classified as held for sale 3,405 Trade and other payables (4,324) Borrowings (7,434) Salaries and social security payable (383) Defined benefit plans (484) Deferred tax liabilities (4,096) Taxes payables (859) Provisions (5,793) (f) Liabilities associated with assets classified as held for sale (240) Income tax and minimum notional income tax provision (1,444) Non-controlling interest (7,869) (g) Goodwill 994 (h) Total purchase price allocation 13,362 |
Consolidated statement of comprehensive income related to discontinued operations | As of December 31, 2017: Oil and gas Refining y distribution Eliminations Total Revenue 5,972 16,795 (6,890) 15,877 Cost of sales (4,840) (14,256) 6,906 (12,190) Gross profit 1,132 2,539 16 3,687 Selling expenses (182) (1,957) - (2,139) Administrative expenses (127) (80) - (207) Exploration expenses (19) - - (19) Other operating income 377 223 - 600 Other operating expenses (181) (110) - (291) Impairment of non current assets classified - (687) - (687) Operating income (loss) 1,000 (72) 16 944 Finance income 22 15 - 37 Finance expenses - (16) - (16) Other financial results (239) (14) - (253) Financial results, net (217) (15) - (232) Income (loss) before income tax 783 (87) 16 712 - Income tax and minimum notional income tax (662) 44 - (618) Profit (loss) of the year for discontinued operations 121 (43) 16 94 Other comprehensive income Items that will not be reclassified to profit or loss Remeasurements related to defined benefit plans (7) 17 - 10 Income tax (174) (6) - (180) Items that may be reclassified to profit or loss - Exchange differences on translation 773 - - 773 Other comprehensive income of the year for discontinued operations 592 11 - 603 Total comprehensive income (loss) of the year for discontinued operations 713 (32) 16 697 Oil and gas Refining y distribution Eliminations Total Total income (loss) of the year for discontinued operations attributable to: Owners of the company 10 (43) 16 (17) Non - controlling interest 111 - - 111 121 (43) 16 94 Total comprehensive income (loss) of the year for discontinued operations attributable to: Owners of the company 282 (32) 16 266 Non - controlling interest 431 - - 431 713 (32) 16 697 As of December 31, 2016: Oil and gas Refining y distribution Eliminations Total Revenue 2,456 6,550 (2,821) 6,185 Cost of sales (1,941) (5,973) 2,931 (4,983) Gross profit 515 577 110 1,202 Selling expenses (63) (757) - (820) Administrative expenses (25) (23) - (48) Exploration expenses (41) - - (41) Other operating income 235 459 (377) 317 Other operating expenses (656) (98) 377 (377) Operating income (35) 158 110 233 Finance income 38 6 - 44 Finance expenses (10) (9) - (19) Other financial results (43) (40) - (83) Financial results, net (15) (43) - (58) Income (loss) before income tax (50) 115 110 175 Income tax and minimum notional income tax (24) (40) (39) (103) Profit (loss) of the year for discontinued operations (74) 75 71 72 Other comprehensive income Items that will not be reclassified to profit or loss Remeasurements related to defined benefit plans (62) 14 - (48) Income tax 22 (5) - 17 Items that may be reclassified to profit or loss - Exchange differences on translation 280 - - 280 Other comprehensive income of the year for discontinued operations 240 9 - 249 Total comprehensive income (loss) of the year for discontinued operations 166 84 71 321 Oil and gas Refining y distribution Eliminations Total Total income of the year for discontinued operations attributable to: Owners of the company (64) 75 71 82 Non - controlling interest (10) - - (10) (74) 75 71 72 Total comprehensive income of the year for discontinued operations attributable to: Owners of the company 77 84 71 232 Non - controlling interest 89 - - 89 166 84 71 321 |
Consolidated statement of cash flows related to discontinued operations | 12.31.2017 12.31.2016 Net cash generated by operating activities 1,979 1,549 Net cash used in investing activities (1,176) (661) Net cash (used in) generated by financing activities (719) (922) Increase (Decrease) in cash and cash equivalents from discontinued operations 84 (34) Cash and cash equivalents at the beginning of the year 77 111 Increase (Decrease) in cash and cash equivalents 84 (34) Cash and cash equivalents at the end of the year 161 77 |
Assets and liabilities that comprise the assets held for sale and associated liabilities | Oil and gas Refining y distribution 12.31.2017 12.31.2016 ASSETS NON-CURRENT ASSETS Property, plant and equipment 7,545 1,119 8,664 - Intangible assets 311 104 415 - Financial assets at amortized cost 35 - 35 19 Trade and other receivables 6 - 6 - Total non-current assets 7,897 1,223 9,120 19 CURRENT ASSETS Inventories 153 1,960 2,113 - Financial assets at fair value through profit and loss 681 - 681 - Trade and other receivables 426 - 426 - Cash and cash equivalents 161 - 161 - Total current assets 1,421 1,960 3,381 - Total assets classified as held for sale 9,318 3,183 12,501 19 LIABILITIES NON-CURRENT LIABILITIES Defined benefit plans 97 58 155 - Deferred tax liabilities 567 - 567 - Provisions 922 52 974 - Total non-current liabilities 1,586 110 1,696 - CURRENT LIABILITIES Trade and other payables 390 - 390 - Salaries and social security payable 47 - 47 - Defined benefit plans 2 6 8 - Income tax and minimum notional income tax provision 26 - 26 - Taxes payables 117 - 117 - Provisions 51 35 86 - Total current liabilities 633 41 674 - Liabilities associated to assets classified 2,219 151 2,370 - |
2. REGULATORY FRAMEWORK (Tables
2. REGULATORY FRAMEWORK (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Regulatory Framework Tables | |
Generating units in operation | Generator Generating unit Tecnology Power Applicable regime CTG GUEMTG01 TG 101 MW Energy Plus Res. N° 1281/06 and SEE Resoluion N° 19/2017 (1) CTG GUEMTV11 TV ≤100 MW SE Resolutions No. 22/2016 and 19/2017 CTG GUEMTV12 TV ≤100 MW SE Resolutions No. 22/2016 and 19/2017 CTG GUEMTV13 TV >100 MW SE Resolutions No. 22/2016 and 19/2017 Piquirenda PIQIDI 01-10 MG 30 MW SE Resolution No. 220/2007 (1) CPB BBLATV29 TV >100 MW SE Resolutions No. 22/2016 and 19/2017 CPB BBLATV30 TV >100 MW SE Resolutions No. 22/2016 and 19/2017 CT Ing. White BBLMD01-06 MG 100 MW SEE Resolution No. 21/2016 (1) CTLL LDLATG01 TG >50 MW SE Resolutions No. 22/2016 and 19/2017 CTLL LDLATG02 TG >50 MW SE Resolutions No. 22/2016 and 19/2017 CTLL LDLATG03 TG >50 MW SE Resolutions No. 22/2016 and 19/2017 CTLL LDLATG04 TG 105 MW SEE Res. 220/2007 (75%), SEE Res. 22/2016 and 19/2017 (25%) CTLL LDLATG05 TG 105 MW SEE Resolution No. 21/2016 (1) CTLL LDLATV01 TV 180 MW SE Resolution No. 220/2007 (1) CTGEBA GEBATG01/TG02/TV01 CC >150 MW SE Resolutions No. 22/2016 and 19/2017 CTGEBA GEBATG03 TG 164 MW Energy Plus Res. N° 1281/06 HIDISA AGUA DEL TORO HI HI – Media 120<P≤300 SE Resolutions No. 22/2016 and 19/2017 HIDISA EL TIGRE HI Renewable ≤ 50 SE Resolutions No. 22/2016 and 19/2017 HIDISA LOS REYUNOS HI HI – Media 120<P≤300 SE Resolutions No. 22/2016 and 19/2017 HINISA NIHUIL I HI HI – Small 50<P≤120 SE Resolutions No. 22/2016 and 19/2017 (2) HINISA NIHUIL II HI HI – Small 50<P≤120 SE Resolutions No. 22/2016 and 19/2017 (2) HINISA NIHUIL III HI HI – Small 50<P≤120 SE Resolutions No. 22/2016 and 19/2017 (2) HPPL PPL1HI HI HI – Media 120<P≤300 SE Resolutions No. 22/2016 and 19/2017 HPPL PPL2HI HI HI – Media 120<P≤300 SE Resolutions No. 22/2016 and 19/2017 HPPL PPL3HI HI HI – Media 120<P≤300 SE Resolutions No. 22/2016 and 19/2017 Ecoenergía CERITV01 TV 15 MW Energy Plus Res. N° 1281/06 (1) CT Parque Pilar PILBD01-06 MG 100 MW SEE Resolution No. 21/2016 (1) (1) (2) |
Generating units in construction | Generator Generating unit Tecnology Applicable regime CTLL MG 15 MW SE Resolution No. 19/2017 Greenwind Wind 100 MW Renovar CTGEBA CC 383 MW Resolution No. 420/2017 |
Effects of the credit notes issued | Res. No. 6 and 41 /2016 Res. ENRE No. 1/2016 Payables for purchase of electricity - CAMMESA (270) (1,126) Purchase of electricity 270 - Income recognition of Note No. 2016-04484723 - 1,126 |
4. ACCOUNTING POLICIES (Tables)
4. ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies Tables | |
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 |
6. FINANCIAL RISK MANAGEMENT (T
6. FINANCIAL RISK MANAGEMENT (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Financial Risk Management Tables | |
Financial liabilities contractual undiscounted cash flows maturity | Type Amount of foreign currency Exchange rate (1) Total 12.31.2017 Total 12.31.2016 ASSETS NON CURRENT ASSETS Financial instruments Financial assets at amortized cost Third parties US$ - - - 1 Other receivables Related parties US$ 42.4 18.599 789 733 Third parties US$ 62.7 18.549 1,163 934 Financial assets at fair value through profit and loss Third parties US$ - - - 513 Total non current assets 1,952 2,181 CURRENT ASSETS Financial instruments Financial assets at fair value through profit and loss Third parties US$ 263.0 18.549 4,879 678 Derivative financial instruments Third parties US$ 0.2 18.549 4 - Trade and other receivables Related parties US$ 10.2 18.599 189 106 Third parties US$ 246.0 18.549 4,563 4,464 EUR - - - 1 VEF - - - 2 Cash and cash equivalents US$ 21.8 18.549 404 1,087 EUR 0.3 22.283 7 2 Total current assets 10,046 6,340 Non Financial instruments Non current assets classified as held for sale US$ 39.0 18.549 723 19 Total assets 12,721 8,540 Type Amount of foreign currency Exchange rate (1) Total 12.31.2017 Total 12.31.2016 LIABILITIES NON CURRENT LIABILITIES Financial instruments Trade and other payables Third parties US$ 6.7 18.649 125 - Borrowings Related parties US$ 0.8 18.599 14 16 Third parties US$ 1,737.5 18.649 32,403 11,737 Non financial instruments Provisions Related parties US$ - - - 366 Third parties US$ 89.1 18.649 1,662 2,378 Total non current liabilities 34,204 14,497 CURRENT LIABILITIES Financial instruments Trade and other payables Related parties US$ 2.2 18.599 40 95 Third parties US$ 249.4 18.649 4,651 3,447 EUR 22.4 22.450 502 57 CHF 0.6 19.168 12 - SEK 21.0 2.280 48 6 VEF - - - 5 Borrowings Third parties US$ 213.4 18.649 3,979 5,398 Non financial instruments Salaries and social security payable Third parties US$ 0.1 18.649 3 1 Taxes payables Third parties US$ 1.0 18.649 19 11 Provisions Related parties US$ 21.3 18.599 396 394 Third parties US$ 15.0 18.649 280 307 Total current liabilities 9,930 9,721 Liabilities associated to assets classified as held for sale US$ 68.9 18.649 1,285 - Total liabilities 45,419 24,218 Net Position Liability (32,698) (15,678) (1) |
Exposure to the price risk | Increase (decrease) of the result for the year Financial assets 12.31.2017 12.31.2016 Shares 15 15 Government securities 502 158 Investment funds 959 319 Corporate bonds - 1 Variation of the result of the year 1,476 493 |
Borrowings classified by interest rate | 12.31.2017 12.31.2016 Fixed interest rate: Argentinian pesos 2,270 2,729 U.S dollar 33,769 14,305 Subtotal loans granted at a fixed interest rate 36,039 17,034 Floating interest rates: Argentinian pesos 3,603 5,808 U.S dollar 2,108 2,479 Subtotal loans granted at a floating interest rate 5,711 8,287 Non-interest accrual U.S dollar 697 284 Argentinian pesos 519 367 Subtotal non-interest accrual 1,216 651 Total borrowings 42,966 25,972 |
Liquidity index | 12.31.2017 12.31.2016 Current assets 36,912 23,150 Current liabilities 29,958 30,063 Index 1.23 0.77 |
Financial liabilities contractual undiscounted cash flows maturity | As of December 31, 2017 Trade and other payables Borrowings Total Less than three months 12,041 13,936 25,977 Three months to one year 6,004 12,938 18,942 One to two years 221 4,166 4,387 Two to five years 122 16,624 16,746 More than five years - 30,239 30,239 Without established term 6,068 6,071 12,139 Total 24,456 83,974 108,430 As of December 31, 2016 Trade and other payables Borrowings Total Less than three months 8,799 1,088 9,887 Three months to one year 4,068 10,995 15,063 One to two years 311 2,548 2,859 Two to five years 118 6,312 6,430 More than five years - 12,080 12,080 Without established term 4,907 - 4,907 Total 18,203 33,023 51,226 |
Financial leverage ratios | 12.31.2017 12.31.2016 Total borrowings 42,966 25,972 Less: cash and cash equivalents, and financial assets at fair value through profit and loss (15,412) (5,609) Net debt 27,554 20,363 Total capital attributable to owners 44,464 31,417 Leverage ratio 61.97% 64.82% |
Financial assets and liabilities at fair value by fair value hierarchy | As of December 31, 2017 Level 1 Level 2 Level 3 Total Assets Financial assets at fair value through Government securities 5,024 - - 5,024 Shares - - 150 150 Investment funds 9,589 - - 9,589 Derivative financial instruments - 4 - 4 Other receivables 590 - - 590 Total assets 15,203 4 150 15,357 Liabilities Derivative financial instruments - 82 - 82 Total liabilities - 82 - 82 As of December 31, 2016 Level 1 Level 2 Level 3 Total Assets Financial assets at fair value through Corporate securities 12 - - 12 Government securities 1,576 - - 1,576 Trust - - 150 150 Investment funds 3,189 - - 3,189 Other 3 - - 3 Cash and cash equivalents Investment funds 61 - - 61 Derivative financial instruments - 13 - 13 Other receivables 29 - - 29 Total assets 4,870 13 150 5,033 |
7. INVESTMENTS IN SUBSIDIARIES
7. INVESTMENTS IN SUBSIDIARIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Investments In Subsidiaries Tables | |
Subsidiaries information | 12.31.2017 12.31.2016 Company Country Main activity Direct and indirect participation % Direct and indirect participation % BLL (1) Argentina Winemaking - 100.00% Corod Argentina Oil 100.00% 100.00% CPB Energía S.A. Argentina Oil 100.00% - CTG (1) Argentina Generation - 90.42% CTLL (1) Argentina Generation - 100.00% Ecuador TLC S.A. Ecuador Oil 100.00% 100.00% Edenor Argentina Distribution of energy 51.54% 51.54% Eg3 Red (1) Argentina Distribution - 100.00% Enecor S.A. Argentina Transportation of electricity 69.99% 69.99% IEASA (2) Argentina Investment - 100.00% INDISA (1) Argentina Investment - 91.60% INNISA (1) Argentina Investment - 90.27% HIDISA Argentina Generation 61.00% 61.00% HINISA Argentina Generation 52.04% 52.04% IPB (1) Argentina Investment - 100.00% PACOSA (3) Argentina Distributor 100.00% 100.00% PBI Bolivia Investment 100.00% 100.00% PELSA (4) Argentina Oil 58.88% 58.88% Petrobras Energía Colombia Gran Cayman Colombia Oil 100.00% 100.00% Petrobras Energía México Mexico Oil - 100.00% Petrobras Energía Ecuador Gran Cayman Investment 100.00% 100.00% Petrobras Energía Operaciones Ecuador Ecuador Oil 100.00% 100.00% PEPASA (1) Argentina Oil - 49.54% Petrolera San Carlos S.A. Venezuela Oil 100.00% 100.00% PHA Spain Investment 100.00% 100.00% PISA Uruguay Investment 100.00% 100.00% PP Argentina Investment 100.00% 100.00% PP II (1) Argentina Investment - 100.00% PPSL Spain Investment 100.00% 100.00% TGU Uruguay Gas transportation 100.00% 100.00% Transelec Argentina Investment 100.00% 100.00% WEBSA (3) Argentina Distributor - 100.00% (1) See Note 1.4.1. (2) See Note 1.4.3.1. (3) See Note 1.4.3.2. (4) See Note 1.5.2. |
Summary statement of financial position for subsidiaries with significant non-controlling interest | Edenor 12.31.2017 12.31.2016 Non Current Total non current assets 16,042 12,311 Borrowings 4,192 2,770 Other non current liabilities 7,511 6,238 Total non current liabilities 11,703 9,008 Current Cash and cash equivalents 83 259 Other current assets 9,180 6,363 Total current assets 9,263 6,622 Borrowings 71 54 Other current liabilities 12,470 9,509 Total current liabilities 12,541 9,563 Total equity 1,061 362 Non-controlling interest 514 175 PELSA 12.31.2017 12.31.2016 Non Current Total non current assets 5,081 4,896 Other non current liabilities 954 1,012 Total non current liabilities 954 1,012 Current Cash and cash equivalents 162 77 Other current assets 1,727 1,154 Total current assets 1,889 1,231 Other current liabilities 599 630 Total current liabilities 599 630 Total equity 5,417 4,485 Non-controlling interest 2,227 1,844 |
Summary statement of comprehensive income (loss) for subsidiaries with significant non-controlling interest | Edenor 12.31.2017 12.31.2016 12.31.2015 Revenue 24,340 13,080 3,802 Depreciation (430) (352) (281) Interest income 273 197 96 Interest expense (1,541) (1,442) (430) Profit (loss) for the year before tax 1,123 (1,932) 1,326 Income tax (441) 743 (184) Profit (loss) for the year 682 (1,189) 1,142 Other comprehensive loss 9 5 (2) Total comprehensive (loss) profit of the year 691 (1,184) 1,140 Income (loss) of the year attributable to non-controlling interest 331 (576) 553 Other comprehensive income of the year attributable to non-controlling interest 4 2 (1) Comprehensive income (loss) of the year attributable to non-controlling interest 335 (574) 552 PELSA 12.31.2017 12.31.2016 (1) Revenue 3,321 1,155 Depreciation (1,017) (413) Interest income 22 13 Income (loss) for the year / period before tax 278 (3) Income tax (8) (41) Income (loss) for the year / period 270 (44) Other comprehensive income 769 228 Total comprehensive profit of the year / period 1,039 184 Income (loss) of the year attributable to non-controlling interest 111 (18) Other comprehensive income of the year attributable to non-controlling interest 316 94 Comprehensive income (loss) of the year attributable to non-controlling interest 427 76 (1) The information reflects the effect of consolidation of Petrobras Argentina as from July 27, 2016 when the Acquisition was consummated. PEPASA 09.30.2017 (1) 12.31.2016 12.31.2015 Revenue 2,894 2,839 943 Depreciation (661) (867) (276) Interest income 22 1 12 Interest expense (188) (712) (382) Profit for the year before tax 1,277 816 515 Income tax (411) (288) (164) Profit for the period / year 866 528 351 Comprehensive income of the period/year attributable to non-controlling interest 437 266 177 (1) The information reflects the effect of consolidation until September 30, 2017 when the PEPASA has merged with Pampa. |
Summary statement of cash flow | Edenor 12.31.2017 12.31.2016 12.31.2015 Net cash generated by operating activities 3,283 2,931 3,217 Net cash used in investing activities (4,046) (2,373) (3,103) Net cash generated by (used in) financing activities 587 (493) (173) (Decrease) Increase in cash and cash equivalents (176) 65 (59) Cash and cash equivalents at the beginning of the year 259 129 179 Exchange difference generated by cash - 65 9 Cash and cash equivalents at the end of the year 83 259 129 PELSA 12.31.2017 12.31.2016 (1) Net cash generated by operating activities 543 332 Net cash used in investing activities (362) (243) Net cash generated by financing activities (108) (108) Increase (Decrease) in cash and cash equivalents 73 (10) Cash and cash equivalents at the beginning 77 121 Exchange difference generated by cash and cash equivalents 12 (34) Cash and cash equivalents at the end of the year 162 77 (1) The information reflects the effect of consolidation of Petrobras Argentina as from July 27, 2016 when the Acquisition was consummated. PEPASA 09.30.2017 (1) 12.31.2016 12.31.2015 Net cash generated by operating activities 565 1,659 461 Net cash generated by (used in) investing activities 1,209 (2,476) (1,187) Net cash (used in) generated by financing activities (1,961) 994 706 (Decrease) Increase in cash and cash equivalents (187) 177 (20) Cash and cash equivalents at the beginning of the year 226 40 51 Exchange difference generated by cash 4 9 9 Cash and cash equivalents at the end of the period/year 43 226 40 (1) The information reflects the effect of consolidation until September 30, 2017 when the PEPASA has merged with Pampa. |
8. INVESTMENTS IN JOINT VENTU61
8. INVESTMENTS IN JOINT VENTURES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Investments In Joint Ventures Tables | |
Investments in Joint ventures information | Information about the issuer Main activity Date Share capital Profit (loss) of the year Equity Direct and indirect participation % CIESA (1) Investment 12.31.2017 639 1,356 2,900 50% Citelec (2) Investment 12.31.2017 555 1,201 1,505 50% Greenwind (3) Generation 12.31.2017 5 (104) 222 50% (1) therefore, the Company has an indirect participation of 25.50% in TGS. (2) (3) |
Interest in joint ventures | 12.31.2017 12.31.2016 CIESA 4,048 3,532 Citelec 757 167 Greenwind 125 - 4,930 3,699 |
Result from interests in joint ventures | 12.31.2017 12.31.2016 12.31.2015 CIESA 518 125 - Citelec 596 (20) 9 Greenwind (50) - - 1,064 105 9 |
Evolution of interests in joint ventures | 12.31.2017 12.31.2016 12.31.2015 At the beginning of the year 3,699 224 227 Reclassifications (1) 175 - - Increase for subsidiaries acquisition (2) - 3,407 - Other decreases (2) (32) (14) Share of profit 1,064 105 9 Share capital increase - - 1 Other comprehensive (loss) income (6) (5) 1 At the end of the year 4,930 3,699 224 (1) (2) Corresponds to the incorporation of the interest in CIESA (Note 1.3.1). |
9. INVESTMENTS IN ASSOCIATES (T
9. INVESTMENTS IN ASSOCIATES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Investments In Associates Tables | |
Investments in Associates information | Information about the issuer Main activity Date Share capital Profit (loss) of the period / year Equity Direct participation % Refinor Refinery 09.30.2017 92 (10) 980 28.50% Oldeval Transport of hydrocarbons 12.31.2017 110 216 657 23.10% |
Investments in associates | 12.31.2017 12.31.2016 Refinor 602 602 Oldelval 221 184 Other 1 1 824 787 |
Result from investments in associates | 12.31.2017 12.31.2016 12.31.2015 Oldelval 44 11 - Refinor - (1) - CIESA - (3) (10) 44 7 (10) |
Evolution of investments in associates | Note 12.31.2017 12.31.2016 12.31.2015 At the beginning of the year 787 123 133 Dividends 30 (7) (4) - Increase for subsidiaries acquisition - 777 - Decreases on disposal of investment in subsidiary - (116) - Share of profit (loss) 44 7 (10) At the end of the year 824 787 123 |
10. PROPERTY, PLANT AND EQUIP63
10. PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property Plant And Equipment Tables | |
Changes in property plant and equipment | Original values Type of good At the beginning Translation effect Increase for subsidiaries acquisition Reversal of impairment Increases Decreases Transfers (1) Reclassification to assets classified as held At the end Land 1,193 - - - 54 (582) 12 (323) 354 Buildings 2,090 1 - - - (18) 239 (238) 2,074 Equipment and machinery 9,000 17 - - 41 (27) 4,046 (913) 12,164 High, medium and low voltage lines 4,586 - - 304 - (20) 1,076 - 5,946 Substations 1,729 - - 85 - - 464 - 2,278 Transforming chamber and platforms 1,040 - - 64 - (2) 281 - 1,383 Meters 943 - - 170 - - 64 - 1,177 Wells 10,522 872 - - 295 (425) 3,017 (7,718) 6,563 Mining property 5,033 81 - - 220 - - (1,566) 3,768 Vehicles 296 2 - - 74 (6) 2 (21) 347 Furniture and fixtures and software equipment 287 7 - - 229 (4) 65 (67) 517 Communication equipments 93 - - - - - 1 (1) 93 Materials and spare parts 628 3 - - 298 (83) (330) (60) 456 Refining and distribution industrial complex 873 - - - - (12) 77 (790) 148 Petrochemical industrial complex 756 - - - - - 169 - 925 Work in progress 6,560 23 - - 12,647 10 (8,355) (320) 10,565 Advances to suppliers 786 - - - 1,131 (274) (911) - 732 Other goods 12 - - - - - - - 12 Total at 12.31.2017 46,427 1,006 - 623 14,989 (1,443) (83) (12,017) 49,502 Total at 12.31.2016 17,334 286 21,801 - 8,440 (1,273) 1 - 46,589 (1) Includes the transfer of materials and spare parts to item “inventories” of the current asset. |
Property plant and equipment depreciation and net book values | Depreciation Net book values Type of good At the beginning Decreases Translation effect For the year (1) Reversal of impairment Reclassification to assets classified as held At the end At the end At 12.31.2016 Land - - - - - - - 354 1,193 Buildings (177) 15 - (109) - 22 (249) 1,825 1,913 Equipment and machinery (1,090) 16 (2) (1,238) - 211 (2,103) 10,061 7,910 High, medium and low voltage lines (778) 13 - (163) (91) - (1,019) 4,927 3,808 Substations (318) - - (58) (27) - (403) 1,875 1,411 Transforming chamber and platforms (191) - - (39) (18) - (248) 1,135 849 Meters (306) - - (47) (26) - (379) 798 637 Wells (1,665) - (180) (2,374) - 2,006 (2,213) 4,350 8,857 Mining property (630) - (18) (898) - 362 (1,184) 2,584 4,403 Vehicles (122) 5 (1) (65) - 8 (175) 172 174 Furniture and fixtures and software equipment (23) 1 (3) (137) - 32 (130) 387 264 Communication equipments (39) - - (4) - - (43) 50 54 Materials and spare parts (18) 47 - (8) - - 21 477 610 Refining and distribution industrial complex (36) 11 - (74) - 83 (16) 132 837 Petrochemical industrial complex (27) - - (113) - - (140) 785 729 Work in progress - - - - - - - 10,565 6,560 Advances to suppliers - - - - - - - 732 786 Other goods (6) - - (1) - - (7) 5 6 Total at 12.31.2017 (5,426) 108 (204) (5,328) (162) 2,724 (8,288) 41,214 Total at 12.31.2016 (2,825) 302 - (2,976) - - (5,499) 41,001 (1) Includes $ 1,940 million and $ 803 million corresponding to discontinued operations, for 2017 and 2016, respectively. |
11. INTANGIBLE ASSETS (Tables)
11. INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Intangible Assets Tables | |
Intangible assets original values | Original values Type of good At the beginning Increase for subsidiaries acquisition (1) Reversal of impairment Increase Decrease Reclassification to assets held for sale At the end Concession agreements 951 - 96 - - - 1,047 Goodwill 999 - - - - (311) 688 Intangibles identified in acquisitions of companies 416 - - - (54) (206) 156 Others 14 - - - - (14) - Total at 12.31.2017 2,380 - 96 - (54) (531) 1,891 Total at 12.31.2016 965 1,297 - 118 - - 2,380 (1) Includes the increase of intangible assets related to the purchase of PPSL in the amount of $ 1,218 million. |
Intangible assets amortization | Amortization Type of good At the beginning For the year (1) Reversal of impairment Decrease Reclassification to assets held for sale At the end Concession agreements (249) (27) (14) - - (290) Goodwill - - - - - - Intangibles identified in acquisitions of companies (28) (44) - - 57 (15) Others - (1) - - 1 - Total at 12.31.2017 (277) (72) (14) - 58 (305) Total at 12.31.2016 (231) (46) - - - (277) (1) Includes $ 39 million and $ 18 million corresponding to discontinued operations, for 2017 and 2016, respectively. |
Intangible assets net book values | Net book values Type of good At the end At 12.31.2016 Concession agreements 757 702 Goodwill 688 999 Intangibles identified in acquisitions of companies 141 388 Others - 14 Total at 12.31.2017 1,586 Total at 12.31.2016 2,103 |
12. FINANCIAL ASSETS AT FAIR 65
12. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT AND LOSS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Financial Assets At Fair Value Through Profit And Loss Tables | |
Financial assets at fair value through profit and loss | 12.31.2017 12.31.2016 Non current Shares 150 150 Government bonds - 592 Total non current 150 742 Current Government bonds 5,024 984 Corporate bonds - 12 Investment funds 9,589 3,189 Other - 3 Total current 14,613 4,188 |
13. FINANCIAL ASSETS AT AMORT66
13. FINANCIAL ASSETS AT AMORTIZED COST (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Financial Assets At Amortized Cost Tables | |
Financial assets at amortized cost | 12.31.2017 12.31.2016 Non current Government securities - 44 Corporate securities - 1 Financial Trustee - Gasoducto Sur Work - 17 Total non current - 62 Current Government securities 11 2 Financial Trustee - Gasoducto Sur Work 14 21 Total current 25 23 |
14. DEFERRED TAX ASSETS AND L67
14. DEFERRED TAX ASSETS AND LIABILITIES, INCOME TAX AND MINIMUM NOTIONAL INCOME TAX (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Deferred Tax Assets And Liabilities Income Tax And Minimum Notional Income Tax Tables | |
Deferred tax assets and liabilities | 12.31.2016 Reclassification to held for sale Profit (loss) (1) Other comprehensive income (loss) (2) 12.31.2017 Tax loss-carryforwards 942 - 694 - 1,636 Trade and other receivables 194 (5) (70) - 119 Financial assets at fair value through profit and loss - - 12 - 12 Trade and other payables 1,124 - 58 - 1,182 Defined benefit plans 361 (56) (41) (4) 260 Provisions 1,722 (306) (674) - 742 Taxes payable 224 - (55) - 169 Liabilities associated to assets classified as held for sale - 367 - - 367 Other 126 - (81) - 45 Deferred tax asset 4,693 - (157) (4) 4,532 Property, plant and equipment (4,624) 841 2,083 - (1,700) Investments in companies (1,329) - 222 (176) (1,283) Intangible assets (294) - 221 - (73) Trade and other receivables (851) - 176 - (675) Financial assets at fair value through profit and loss (95) - 46 - (49) Borrowings (61) - (75) - (136) Assets classified as held for sale - (841) - - (841) Other (3) - 8 - 5 Deferred tax liabilities (7,257) - 2,681 (176) (4,752) (1) Includes a loss of $ 618 million corresponding to discontinued operations. (2) Includes a loss of $ 180 million corresponding to discontinued operations. 12.31.2015 Increase for subsidiaries acquisition Profit (loss) (1) Other comprehensive income (loss) (2) 12.31.2016 Tax loss-carryforwards 32 - 910 - 942 Trade and other receivables 53 89 52 - 194 Financial assets at fair value through profit and loss 8 - (8) - - Trade and other payables 333 - 791 - 1,124 Defined benefit plans 109 170 55 27 361 Provisions 134 1,372 216 - 1,722 Taxes payable 49 379 (192) (12) 224 Other 23 112 (9) - 126 Deferred tax asset 741 2,122 1,815 15 4,693 Property, plant and equipment (710) (4,477) 563 - (4,624) Share of profit from joint ventures and associates - (1,281) (48) - (1,329) Intangible assets (229) (74) 9 - (294) Trade and other receivables (266) (269) (316) - (851) Financial assets at fair value through profit and loss (49) (53) 7 - (95) Borrowings (25) (43) 7 - (61) Other (2) (21) 20 - (3) Deferred tax liabilities (1,281) (6,218) 242 - (7,257) (1) Includes a loss of $ 103 million corresponding to discontinued operations . (2) Includes a gain of $ 17 million corresponding to discontinued operations. |
Net Deferred tax assets and liabilities | 12.31.2017 12.31.2016 Deferred tax asset 1,306 1,232 Deferred tax liabilities (1,526) (3,796) Deferred tax liabilities, net (220) (2,564) |
Income tax charge | 12.31.2017 12.31.2016 12.31.2015 Current tax 1,385 1,021 370 Deferred tax (2,524) (2,057) 163 Direct charges for income tax 79 - - Difference in the estimate of previous fiscal year income tax and the income return (307) (5) - Other comprehensive (loss) income - (15) - Minimum notional tax - (145) 54 Total income tax expense (gain) (1,367) (1,201) 587 |
Reconciliation of income tax expense | Note 12.31.2017 12.31.2016 12.31.2015 Profit (loss) before tax 4,209 (1,525) 4,436 Current tax rate 35% 35% 35% Result at the tax rate 1,473 (534) 1,553 Share of profit of joint ventures and associates (208) (39) - Non-taxable results (1,347) (731) (1,045) Non-deductible cost 194 - - Non-deductible provisions 121 123 12 Other 9 131 (2) Effect of tax rate change in deferred tax 48 (449) - - Minimum notional income tax credit - (145) 54 Difference in the estimate of previous fiscal year income tax and the income tax statement (447) 13 45 Deferred tax not previously recognized (714) 17 (282) Deferred tax assets not recognized 1 (36) 252 Total income tax expense (gain) (1,367) (1,201) 587 |
Tax loss caryforwards | Fiscal year generation Fiscal year prescription 12.31.2017 12.31.2016 2012 2017 - 167 2013 2018 1 115 2014 2019 1 153 2015 2020 10 252 2016 2021 684 942 2017 2022 940 - 1,636 1,629 Unrecognized deferred assets - (687) Recognized Tax loss-carryforwards 1,636 942 |
15. TRADE AND OTHER RECEIVABL68
15. TRADE AND OTHER RECEIVABLES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Trade And Other Receivables Tables | |
Trade and other receivables | Note 12.31.2017 12.31.2016 Non Current CAMMESA Receivable (1) 2,868 2,286 Other 6 6 Trade receivables, net 2,874 2,292 Tax credits 163 533 Allowance for tax credits (14) (105) Related parties 36 794 740 Prepaid expenses 20 26 Financial credit 37 44 Guarantee deposits 92 80 Contractual receivables in Ecuador 42 998 850 Receivable for sale of property, plant and equipment 67 - Other 11 9 Other receivables, net 2,168 2,177 Total non current 5,042 4,469 Current Receivables from energy distribution sales 6,115 4,138 Receivables from MAT 436 311 CAMMESA 2,887 1,501 CAMMESA Receivable (1) 421 519 Receivables from oil and gas sales 769 1,038 Receivables from refinery and distribution sales 958 949 Receivables from petrochemistry sales 924 744 Related parties 36 170 108 Other 136 25 Allowance for doubtful accounts (557) (429) Trade receivables, net 12,259 8,904 Note 12.31.2017 12.31.2016 Tax credits 1,290 415 Advances to suppliers 11 24 Advances to employees 25 17 Related parties 36 215 98 Prepaid expenses 69 121 Receivables for non-electrical activities 218 143 Financial credit 83 126 Receivable for the sale of interests in subsidiaries and financial instruments - 1,263 Guarantee deposits 1,053 941 Natural Gas Surplus Injection Promotion Program (2) 2,592 1,582 Insurance to recover 202 - Expenses to be recovered 371 314 Receivables from arbitral proceedings 388 - Other 528 343 Allowance for other receivables (159) (147) Other receivables, net 6,886 5,240 Total current 19,145 14,144 (1) As of December 31, 2017 and 2016, the Company and its generation subsidiaries hold receivables from CAMMESA which, at nominal value and together with accrued interest, amount to a total $ 4,508 million and $ 3,798 million, with an estimated recoverable value of $ 3,289 million and $ 2,805 million, respectively. These receivables are made up as follows: a. LVFVDs pursuant to SE Resolution No. 406/2003 for the 2004-2006 period. They have been assigned to FONINVEMEM in the amount of $ 68 million and $ 74 million including interest, and their estimated recoverable value amounts to $ 66 million and $ 71 million, respectively. b. LVFVDs pursuant to SE Resolution No. 406/2003 for the 2008-2013 period and the Trust under SE Resolution No. 95/2013 for the 2013-2016 period in the amount of $ 4,028 million and $ 3,232 million including interest, which estimated recoverable value amounts to $ 2,827 million and $ 2,242 million, respectively. As of December 31, 2017 and 2016, $ 1,445 and $ 1,159 million, including interest, have been allocated to the “2014 Agreement for the Increase of Thermal Generation Availability”, which estimated recoverable value amounts to $ 1,445 million and $ 1,050 million, respectively. c. LVFVDs for Maintenance Remuneration in the amount of $ 396 million and $ 492 million, respectively, to finance the overhauls previously authorized by the SE. They are valued at their nominal value plus accrued interest and, if applicable, they are netted from partial advances received under CAMMESA financing. (2) As of December 31, corresponds to balances pending collection for compensations under the IR and IE Programs for the April 2016-December 2017 period. |
Aging analysis of trade receivables | 12.31.2017 12.31.2016 Less than three months 878 2,432 Three to six months 450 135 Six to nine months 22 37 From nine to twelve months 301 161 Up to twelve months 2 1 Total expired trade receivables 1,653 2,766 |
Allowance for the impairment of trade receivables | 12.31.2017 12.31.2016 At the beginning 429 88 Allowance for impairment 289 252 Decreases (45) (30) Reversal of unused amounts (1) (23) Reclassification to assets held for sale (115) - Increases for purchases of subsidiaries - 142 At the end of the year 557 429 |
Allowance for the impairment of other receivables | 12.31.2017 12.31.2016 At the beginning 252 314 Allowance for impairment 33 49 Decreases (15) (9) Decreases for deconsolidation - (3) Reversal of unused amounts (97) (180) Increase for subsidiaries acquisition - 81 At the end of the year 173 252 |
16. INVENTORIES (Tables)
16. INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Inventories Tables | |
Inventories | 12.31.2017 12.31.2016 Materials and spare parts 1,514 1,336 Advances to suppliers 143 103 In process and finished products 640 1,496 Stock crude oil 29 425 Total 2,326 3,360 |
17. CASH AND CASH EQUIVALENTS (
17. CASH AND CASH EQUIVALENTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Cash And Cash Equivalents Tables | |
Cash and cash equivalents | 12.31.2017 12.31.2016 Cash 30 16 Banks 327 1,308 Investment funds - 61 Time deposits 442 36 Total 799 1,421 |
19. TRADE AND OTHER PAYABLES (T
19. TRADE AND OTHER PAYABLES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Trade And Other Payables Tables | |
Trade and other payables | Non Current 12.31.2017 12.31.2016 Customer contributions 80 98 Funding contributions for substations 60 52 Customer guarantees 101 83 Trade payables 241 233 ENRE Penalties and discounts 3,886 3,477 Loans (mutuums) with CAMMESA 1,885 1,347 Compensation agreements 124 - Liability with FOTAE 190 173 Payment agreement with ENRE 73 106 Other 5 - Other payables 6,163 5,103 Total non current 6,404 5,336 Current Note 12.31.2017 12.31.2016 Suppliers 8,687 5,705 CAMMESA 7,595 5,470 Customer contributions 19 46 Discounts to customers 37 37 Funding contributions substations 8 22 Customer advances 205 384 Customer guarantees 1 15 Related parties 36 80 181 Other 12 6 Trade payables 16,644 11,866 ENRE Penalties and discounts 288 56 Related parties 36 12 14 Advances for works to be executed 14 14 Compensation agreements 562 708 Payment agreements with ENRE 63 60 Other creditors 205 55 Other 264 94 Other payables 1,408 1,001 Total current 18,052 12,867 |
20. BORROWINGS (Tables)
20. BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Borrowings Tables | |
Borrowings | Non Current Note 12.31.2017 12.31.2016 Financial borrowings 5,950 691 Corporate bonds 27,764 12,158 CAMMESA financing 3,398 2,421 Related parties 36 14 16 37,126 15,286 Current Bank overdrafts - 846 Financial borrowings 5,097 7,539 Corporate bonds 739 2,246 CAMMESA financing - 34 Related parties 36 4 21 5,840 10,686 |
Borrowings maturity and exposure to interest rates | Fixed rate 12.31.2017 12.31.2016 Less than one year 4,667 5,335 One to two years 550 536 Two to five years 7,509 580 Up to five years 23,313 10,583 36,039 17,034 Floating rates Less than one year 594 4,918 One to two years 610 207 Two to five years 2,561 3,162 Up to five years 1,946 - 5,711 8,287 Non interest accrues Less than one year 579 433 One to two years - (5) Two to five years 530 223 Up to five years 107 - 1,216 651 |
Changes in borrowings | 12.31.2017 12.31.2016 At the beginning 25,972 7,993 Proceeds from borrowings 26,892 18,367 Payment of borrowings (16,150) (6,813) Accrued interest 3,252 2,715 Payment of borrowings' interests (2,469) (1,519) Net foreign currency exchange difference 5,150 1,761 Increase for subsidiaries acquisition - 7,434 Costs capitalized in property, plant and equipment 329 244 Decrease through shares of subsidiaries (1) - (1,179) Decrease through offsetting with other credits (2) - (1,951) Decrease through offsetting with trade receivables (4) (242) Repurchase and redemption of corporate bonds (28) (893) Other financial results 22 55 At the end of the year 42,966 25,972 (1) Corresponding to US$ 77.4 million related to EMES financing. (2) Corresponding to US$ 123 million (comprised of US$ 120 million of principal plus US$ 3 million of interests) related to YPF financing. |
Borrowings composition | Type of instrument Company Currency Residual value Interest Rate Expiration Book value as of 12.31.17 Corporate bonds: 2022 CB Edenor US$ 172 Fixed 10% 2022 3,321 Class 4 CB PAMPA US$ 34 Fixed 6% 10/30/2020 638 Class E CB PAMPA ARS 575 Variable Badlar 11/13/2020 590 Class A CB PAMPA ARS 282 Variable Badlar 10/5/2018 297 T Series CB PAMPA (1) US$ 500 Fixed 7% 7/21/2023 9,491 Class 1 CB PAMPA (2) US$ 750 Fixed 8% 1/24/2027 14,184 28,521 Regulatory: CAMMESA 2014 Agreement PAMPA ARS 855 Variable CAMMESA (4) 1,572 CAMMESA Mapro PAMPA ARS 140 Variable CAMMESA (3) 193 CAMMESA Mapro CPB ARS 1,088 Variable CAMMESA (3) 1,633 3,398 Financial loans: PAMPA U$S 352 Fixed Between 2,9% and 7,5% Feb-2018 to May-2021 6,628 PAMPA U$S 63 Variable 6% + Libor Sep-2018 to May-2024 1,164 PAMPA ARS 2,270 Fixed Between 22% y 22,25% Aug-2018 to Oct-2019 2,314 Edenor U$S 50 Fixed Libor + 4,27% 10/11/2020 941 11,047 42,966 Type of instrument Company Currency Residual value Amount repurchased Interest Rate Expiration Book value as of 12.31.16 Corporate bonds: CB at Par EASA USD 4 2 Fixed 5% 12/16/2017 27 Discount CB EASA USD 130 130 Fixed 9% 12/16/2021 - 2022 CB Edenor USD 172 - Fixed 10% 10/25/2022 2,823 2017 CB Edenor USD 15 15 Fixed 11% 10/09/2017 - Class 7 CB CTG ARS 173 - Variable Badlar + 3,5% 02/12/2018 179 Class 8 CB CTG USD 1 - Fixed 7% 08/12/2020 22 Class 3 CB CTLL ARS 51 - Variable Badlar + 5% 10/30/2017 53 Class 4 CB CTLL USD 30 - Fixed 6% 10/30/2020 543 Class C CB CTLL ARS 258 - Fixed/Vble. Badlar + 4,5% and 27,75% 05/06/2017 267 Class E CB CTLL ARS 575 - Variable Badlar 11/13/2020 589 Class A CB CTLL ARS 282 - Variable Badlar 10/05/2018 297 Class II CB PEPASA ARS 525 - Variable Badlar 06/06/2017 532 Class VII CB PEPASA ARS 310 - Variable Badlar + 5% 08/03/2017 322 Class VIII CB PEPASA ARS 403 - Variable Badlar + 4% 06/22/2017 402 STV 14 PEPASA ARS 296 - Variable Badlar + 5,9% 04/14/2017 311 T Series CB PAMPA (1) USD 500 - Fixed 7% 07/21/2023 8,074 14,441 Type of instrument Company Currency Residual value Amount repurchased Interest Rate Expiration Book value as of 12.31.16 Regulatory: CAMMESA 2014 Agreement CTLL ARS 736 - Variable CAMMESA (4) 1,154 CAMMESA Mapro CTLL ARS 337 - Variable CAMMESA (3) 102 CAMMESA Mapro CPB ARS 1,211 - Variable CAMMESA (3) 1,199 2,455 Syndicated Lons: PAMPA ARS 993 - Fixed 28% 07/26/2017 999 PAMPA ARS 963 - Variable Badcor + 3% 07/26/2017 970 PAMPA USD 141 - Variable Libor + 7% 07/26/2017 2,236 PAMPA ARS 142 - Fixed 30% 02/26/2019 142 4,347 Financial loans: PEPASA USD 153 - Fixed Between 5% and 8% Aug-2017 to Feb-2018 2,436 PAMPA USD 25 - Fixed Between 2,9% and 7,5% Apr-2017 to Dec-2017 398 CTLL USD 15 - Variable Libor + 4,5% 09/26/2018 239 CTLL USD 19 - Fixed 8% 06/30/2018 305 CTLL ARS 500 - Fixed 20% 11/11/2017 505 3,883 Adelantos en cuenta corriente: PAMPA ARS - - 846 25,972 (1) On July 14, 2016, Petrobras issued the Series T Notes, for a total amount of US $ 500 million, part of which was used to cancel the Series S in its entirety, thus fulfilling the previous condition for the closing of the acquisition of PPSL. (2) On January 24, 2017, the Company issued Class 1 Corporate Bonds for a face value of U$S 750 million with an issuance price of 99.136%. Funds derived from the issuance of these CBs will be destined to investing in physical assets located in Argentina; financing working capital in Argentina; refinancing liabilities and/or making capital contributions in controlled companies or affiliates to use funds for the above-mentioned purposes. (3) Corresponds to the mutual contracts entered into with CAMMESA to finance major maintenance works related to the different generation units approved by the SE. The financing will be amortized in 36 monthly and consecutive installments as from the completion of the works, this term could be extended by 12 months. Maintenance Remuneration will be used to cancel the financing granted. As a result of the entry into force of the new remuneration scheme (Resolution SE No. 19-E /17), the Maintenance Remuneration was discontinued and it was defined that the balance of the financing will be repayable through the discount of US $ 1 / MWh for the energy generated until its total cancellation. (4) On December 1, 2014, CTLL and CAMMESA signed a Financing and Assignment of Loan Agreement in order to finance the works of the 2014 Agreement Project (see Note 47.1). The financing will be canceled, at Pampa option, through a payment in cash or through offsetting with CAMMESA receivables of the Company and other subsidiaries, 36 months as from the month following the commercial commissioning of the last generating unit making up the Projects. |
Financing on arbitration proceedings | Loan principal balance 244 Interest and taxes 80 Total TGS loan 324 Rights over arbitration proceedings (109) Gain from discharge / cancellation of TGS loan 215 |
21. DEFERRED REVENUE (Tables)
21. DEFERRED REVENUE (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Deferred Revenue Tables | |
Deferred revenue | 12.31.2017 12.31.2016 Non current Customer contributions not subject to repayment 195 200 Total non current 195 200 Current Customer contributions not subject to repayment 3 1 Total current 3 1 |
22. SALARIES AND SOCIAL SECUR74
22. SALARIES AND SOCIAL SECURITY PAYABLE (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Salaries And Social Security Payable Tables | |
Salaries and social security payable | 12.31.2017 12.31.2016 Non current Seniority - based bonus 116 89 Early retirements payable 4 5 Total non current 120 94 Current Salaries and social security contributions 579 419 Provision for vacations 671 617 Provision for gratifications and annual bonus for efficiency 899 705 Early retirements payable 5 4 Total current 2,154 1,745 |
23. INCOME TAX AND MINIMUM PR75
23. INCOME TAX AND MINIMUM PRESUME TAX LIABILITY (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax And Minimum Presume Tax Liability Tables | |
Income tax and minimum presume tax liability | 12.31.2017 12.31.2016 Non current Income tax, net of withholdings and advances 848 837 Minimum notional income tax, net of withholdings and advances 15 97 Total non current 863 934 Current Income tax, net of withholdings and advances 880 1,451 Minimum notional income tax, net of withholdings and advances 63 3 Total current 943 1,454 |
24. DEFINED BENEFITS PLANS (Tab
24. DEFINED BENEFITS PLANS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Defined Benefits Plans Tables | |
Defined Benefit plan information | 12.31.2017 Present value of the obligation Fair value of plan assets Net liability at the end of the year Liabilities at the beginning 1,188 (155) 1,033 Items classified in profit or loss (1) Current services cost 58 - 58 Cost for interest 280 (23) 257 Cost for past service 28 - 28 Items classified in other comprehensive income Actuarial losses (gains) (2) (21) 10 (11) Exchange differences on translation 32 (16) 16 Benefit payments (105) 7 (98) Contributions paid - (7) (7) Reclassification to liabilities associated to assets classified as held for sale (268) 105 (163) At the end 1,192 (79) 1,113 (1) Includes $ 25 million corresponding to discontinued operations . (2) Includes $ 10 million corresponding to discontinued operations. 12.31.2016 12.31.2015 Present value of the obligation Present value of assets Net liability at the end of the year Present value of the obligation Liabilities at the beginning 310 - 310 223 Items classified in profit or loss (1) Current services cost 42 - 42 36 Cost for interest 208 (13) 195 86 Items classified in other comprehensive income Actuarial losses (gains) (2) 73 5 78 1 Benefit payments (76) 2 (74) (36) Contributions paid - (2) (2) - Increase for subsidiaries acquisition 631 (147) 484 - At the end 1,188 (155) 1,033 310 (1) Includes a loss of $ 5 million corresponding to discontinued operations for 2016 . (2) Includes $ 9 million corresponding to discontinued operations for 2016. |
Estimated expected benefits payments | 12.31.2017 Less than one year 121 One to two years 84 Two to three years 74 Three to four years 89 Four to five years 81 Six to ten years 377 |
Principal actuarial assumptions | 12.31.2017 12.31.2016 12.31.2015 Discount rate 4% 5% 6% Salaries increase 1% 1% 2% Average inflation 15% 21% 32% |
Sensitivity analyses on actuarial assumptions variations | 12.31.2017 Discount rate: 4% Obligation 1,298 Variation 106 10% Discount rate: 6% Obligation 1,102 Variation (90) (8%) Salaries increase: 0% Obligation 1,126 Variation (66) (6%) Salaries increase: 2% Obligation 1,269 Variation 77 7% |
25. TAX LIABILITIES (Tables)
25. TAX LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Tax Liabilities Tables | |
Tax liabilities | 12.31.2017 12.31.2016 Non current Value added tax 219 287 Sales tax 17 9 Payment plans 130 10 Total non current 366 306 Current Value added tax 526 840 Municipal, provincial and national contributions 398 377 Payment plans 61 3 Municipal taxes 69 58 Tax withholdings to be deposited 195 381 Stamp tax payable 10 10 Royalties 138 165 Extraordinary Canon 553 527 Sales tax - 14 Other 15 17 Total current 1,965 2,392 |
26. PROVISIONS (Tables)
26. PROVISIONS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Provisions Tables | |
Provisions | Note 12.31.2017 12.31.2016 Non Current Provisions for contingencies 3,468 3,977 Asset retirement obligation 918 1,719 Environmental remediation 15 174 Onerous contract (Ship or pay) 42 - 366 Other provisions 34 31 4,435 6,267 Current Provisions for contingencies 129 94 Asset retirement obligation 152 143 Environmental remediation 127 175 Onerous contract (Ship or pay) 42 389 394 798 806 |
Changes in provisions | 12.31.2017 For contingencies Asset retirement obligation For environmental remediation At the beginning of the year 4,071 1,862 349 Increases 980 634 98 Reclassification (209) (16) 16 Decreases (881) (166) (135) Reclassification to liabilities associated to assets classified as held for sale - (875) (184) Reversal of unused amounts (364) (369) (2) At the end of the year 3,597 1,070 142 12.31.2016 For contingencies Asset retirement obligation For environmental remediation At the beginning of the year 335 49 - Increases 472 629 210 Increases for purchases of subsidiaries 3,333 1,210 235 Decreases (69) (26) (96) At the end of the year 4,071 1,862 349 12.31.2015 For contingencies Asset retirement obligation At the beginning of the year 141 3 Increases 228 46 Decreases (34) - At the end of the year 335 49 |
27. REVENUE (Tables)
27. REVENUE (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Revenue Tables | |
Revenue | 12.31.2017 12.31.2016 12.31.2015 Sales of energy to the Spot Market 5,546 2,411 1,050 Sales of energy by contract 3,965 2,187 1,357 Other sales 49 11 11 Generation subtotal 9,560 4,609 2,418 Energy sales 24,170 12,952 3,721 Right of use of poles 131 99 76 Connection and reconnection charges 38 19 5 Other sales - 9 - Distribution subtotal 24,339 13,079 3,802 Oil, Gas and liquid sales 8,271 4,746 848 Other sales 560 117 - Oil and gas subtotal 8,831 4,863 848 Administrative services sales 383 50 37 Other sales 5 2 1 Holding and others subtotal 388 52 38 Petrochemicals sales 7,229 2,507 - Petrochemicals subtotal 7,229 2,507 - Total revenue 50,347 25,110 7,106 |
28. COST OF SALES (Tables)
28. COST OF SALES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Cost Of Sales Tables | |
Cost of sales | 12.31.2017 12.31.2016 12.31.2015 Inventories at the beginning of the year 3,360 225 136 Plus: Charges for the year Incorporation of inventories for acquisition of companies - 3,072 - Purchases of inventories, energy and gas 19,649 9,110 2,496 Salaries and social security charges 4,659 3,450 2,196 Benefits to personnel 164 77 36 Accrual of defined benefit plans 169 134 97 Fees and compensation for services 1,948 1,125 586 Property, plant and equipment depreciations 3,222 2,068 641 Intangible assets amortization 33 28 29 Transport of energy 79 11 16 Consumption of materials 645 390 297 Penalties (1) 269 2,377 260 Maintenance 422 366 128 Canons and Royalties 1,295 602 139 Environmental control 64 33 - Rental and insurance 264 174 79 Surveillance and security 141 95 53 Taxes, rates and contributions 67 45 25 Communications 45 36 15 Water consumption 25 14 9 Other 233 81 25 Subtotal 33,393 23,288 7,127 Less: Inventories at the end of the year (2,326) (3,360) (225) Total cost of sales 34,427 20,153 7,038 (1) Includes $ 414 million of recover by penalties (Note 2.3) |
29. SELLING EXPENSES (Tables)
29. SELLING EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Selling Expenses Tables | |
Selling expenses | 12.31.2017 12.31.2016 12.31.2015 Salaries and social security charges 618 482 311 Accrual of defined benefit plans 14 13 12 Fees and compensation for services 593 496 333 Compensation agreements 132 157 74 Property, plant and equipment depreciations 56 50 35 Taxes, rates and contributions 696 343 95 Communications 177 129 59 Penalties 266 182 24 Doubtful accounts 254 235 27 Transport 85 29 - Other 13 16 3 Total selling expenses 2,904 2,132 973 |
30. ADMINISTRATIVE EXPENSES (Ta
30. ADMINISTRATIVE EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Administrative Expenses Tables | |
Administrative expenses | 12.31.2017 12.31.2016 12.31.2015 Salaries and social security charges 1,953 1,517 527 Benefits to the personnel 140 53 16 Accrual of defined benefit plans 135 85 13 Fees and compensation for services 1,338 1,222 294 Compensation agreements 468 236 101 Directors' and Syndicates' fees 95 65 44 Property, plant and equipment depreciations 110 55 15 Consumption of materials 61 38 23 Maintenance 60 33 3 Transport and per diem 44 25 6 Rental and insurance 138 115 77 Surveillance and security 94 51 26 Taxes, rates and contributions 102 37 45 Communications 48 30 9 Institutional advertising and promotion 56 29 1 Other 63 37 21 Total administrative expenses 4,905 3,628 1,221 |
31. EXPLORATION EXPENSES (Table
31. EXPLORATION EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Exploration Expenses Tables | |
Exploration expenses | 12.31.2017 12.31.2016 12.31.2015 Geological and geophysical expenses 17 18 - Decrease in unproductive wells 27 76 3 Total exploration expenses 44 94 3 |
32. OTHER OPERATING INCOME AN84
32. OTHER OPERATING INCOME AND EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Operating Income And Expenses Tables | |
Other operating income and expenses | Other operating income Note 12.31.2017 12.31.2016 12.31.2015 Recovery of expenses 1 48 7 Recovery of doubtful accounts 86 29 1 Surplus Gas Injection Compensation 2,340 2,037 547 Commissions on municipal tax collections 32 21 15 Services to third parties 190 109 54 Profit for property, plant and equipment sale 5 91 - Dividends received 33 6 4 Recognition of income - provisional remedies Note MEyM No 2016-04484723 - 1,126 - Income recognition on account of the RTI - SE Res. No. 32/15 - 419 5,025 Higher costs recognition - SE Res. No. 250/13 and subsequent Notes - 82 551 Onerous contract (Ship or pay) 42 - 150 - Reversal of contingencies provision 521 5 - Gain from cancellation of TGS Loan - - 215 Other 180 41 98 Total other operating income 3,388 4,164 6,517 Other operating expenses Provision for contingencies (881) (455) (228) Decrease in property, plant and equipment (15) (51) (6) Allowance for uncollectible tax credits (14) (29) (95) Net expense for technical functions - (18) (13) Tax on bank transactions (817) (473) (176) Other expenses FOCEDE - (15) (60) Cost for services provided to third parties (39) (32) (52) Compensation agreements (45) (109) (48) Donations and contributions (38) (17) (7) Institutional relationships (65) (44) (18) Extraordinary Canon (314) (366) - Contingent consideration 1.2.1 (171) - - Onerous contract (Ship or Pay) (90) - - Other (462) (267) (66) Total other operating expenses (2,951) (1,876) (769) |
33. FINANCIAL RESULTS (Tables)
33. FINANCIAL RESULTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Financial Results Tables | |
Financial results | Finance income 12.31.2017 12.31.2016 12.31.2015 Commercial interest 986 677 239 Financial interest 334 67 61 Other interest 112 105 31 Total finance income 1,432 849 331 Finance expenses Commercial interest (1,030) (1,021) (194) Fiscal interest (260) (76) (75) Financial interest (1) (3,714) (3,083) (937) Other interest (5) (3) (2) Taxes and bank commissions (78) (36) (33) Other financial expenses (25) (58) (16) Total financial expenses (5,112) (4,277) (1,257) Other financial results Foreign currency exchange difference, net (3,558) (1,099) (566) Result from repurchase of Corporate Bonds - (4) 10 Changes in the fair value of financial instruments 1,471 1,120 2,271 Discounted value measurement (141) (65) 23 Asset retirement obligation (40) (32) (19) Other financial results 2 - - Total other financial results (2,266) (80) 1,719 Total financial results, net (5,946) (3,508) 793 (1) |
34. EARNING (LOSS) PER SHARE (T
34. EARNING (LOSS) PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earning Loss Per Share | |
Earnings (loss) per share | 12.31.2017 12.31.2016 12.31.2015 Earning (loss) for continuing operations attributable to the equity holders of the Company 4,623 (93) 3,065 Weighted average amount of outstanding shares 1,971 1,736 1,347 Basic and diluted earnings (loss) per share for continuing operations 2.3455 (0.0536) 2.2760 (Loss) Earning for discontinued operations attributable to the equity holders of the Company (17) 82 - Weighted average amount of outstanding shares 1,971 1,736 1,347 Basic and diluted (loss) earnings per share for (0.0086) 0.0472 - Earning (loss) attributable to the equity holders of the Company 4,606 (11) 3,065 Weighted average amount of outstanding shares 1,971 1,736 1,347 Basic and diluted earnings (loss) per share 2.3369 (0.0063) 2.2760 |
35. SEGMENT INFORMATION (Tables
35. SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Information Tables | |
Operating segments | Consolidated profit and loss information as of December 31, 2017 Generation Distribution Oil and gas Refining and Petrochemicals Holding and others Eliminations Consolidated Revenue 9,560 24,339 8,831 - 7,229 388 - 50,347 Intersegment sales 37 - 1,810 - - 36 (1,883) - Cost of sales (5,358) (17,667) (6,581) - (6,655) (3) 1,837 (34,427) Gross profit (loss) 4,239 6,672 4,060 - 574 421 (46) 15,920 Selling expenses (94) (2,079) (455) - (290) - 14 (2,904) Administrative expenses (357) (1,444) (975) - (74) (2,095) 40 (4,905) Exploration expenses - - (44) - - - - (44) Other operating income 420 97 2,522 - 64 289 (4) 3,388 Other operating expenses (149) (758) (776) - (571) (697) - (2,951) Reversal of impairment of property, plant and equipment - 461 - - - - - 461 Reversal of impairment of intangible assets - 82 - - - - - 82 Share of profit (loss) from joint ventures (50) - - - - 1,114 - 1,064 Share of profit from associates - - 44 - - - - 44 Operating profit (loss) 4,009 3,031 4,376 - (297) (968) 4 10,155 Finance income 881 272 96 - 10 214 (41) 1,432 Finance expenses (932) (1,595) (245) - - (2,381) 41 (5,112) Other financial results 55 (9) (193) - 11 (2,130) - (2,266) Financial results, net 4 (1,332) (342) - 21 (4,297) - (5,946) Profit (loss) before income tax 4,013 1,699 4,034 - (276) (5,265) 4 4,209 Income tax and minimum notional income tax 85 (417) (389) - - 2,088 - 1,367 Profit (loss) for the year from continuing operations 4,098 1,282 3,645 - (276) (3,177) 4 5,576 Profit (loss) for the year from discontinued operations - - 121 (43) - - 16 94 Profit (loss) for the year 4,098 1,282 3,766 (43) (276) (3,177) 20 5,670 Depreciation and amortization 845 443 1,956 - 117 60 - 3,421 Consolidated profit and loss information as of December 31, 2017 Generation Distribution Oil and gas Refining and Petrochemicals Holding and others Eliminations Consolidated Total profit (loss) attributable to: Owners of the Company 3,890 951 3,241 (43) (276) (3,177) 20 4,606 Non - controlling interest 208 331 525 - - - - 1,064 Consolidated statement of financial position as of December 31, 2017 Assets 22,833 26,149 22,116 5,887 3,161 29,449 (5,128) 104,467 Liabilities 7,635 24,460 10,446 3,599 2,406 40,948 (5,139) 84,355 Additional consolidated information as of December 31, 2017 Increases in property, plant and equipment 6,277 4,137 4,195 154 110 116 - 14,989 Consolidated profit and loss information as of December 31, 2016 Generation Distribution Oil and gas Refining and Petrochemicals Holding and others Eliminations Consolidated Revenue 4,609 13,079 4,863 - 2,507 52 - 25,110 Intersegment sales 15 - 716 - - 28 (759) - Cost of sales (2,726) (12,220) (3,737) - (2,207) (3) 740 (20,153) Gross profit (loss) 1,898 859 1,842 - 300 77 (19) 4,957 Selling expenses (65) (1,618) (334) - (110) (5) - (2,132) Administrative expenses (392) (1,171) (632) - (15) (1,446) 28 (3,628) Exploration expenses - - (94) - - - - (94) Other operating income 55 1,718 1,892 - - 560 (61) 4,164 Other operating expenses (104) (465) (826) - (263) (282) 64 (1,876) Share of loss from joint ventures - - - - - 105 - 105 Share of profit (loss) from associates - - 11 (1) - (3) - 7 Income from the sale of subsidiaries and financial assets - - - - - 480 - 480 Operating profit (loss) 1,392 (677) 1,859 (1) (88) (514) 12 1,983 Finance income 600 206 103 - 2 105 (167) 849 Finance expenses (750) (1,645) (730) - - (1,320) 168 (4,277) Other financial results 228 (360) 22 - (3) 35 (2) (80) Financial results, net 78 (1,799) (605) - (1) (1,180) (1) (3,508) Profit (loss) before income tax 1,470 (2,476) 1,254 (1) (89) (1,694) 11 (1,525) Income tax and minimum notional income tax (317) 753 (305) - - 1,070 - 1,201 Profit (loss) for the year from continuing operations 1,153 (1,723) 949 (1) (89) (624) 11 (324) Profit for the year from discontinued operations - - (74) 75 - - 71 72 Profit (loss) for the year 1,153 (1,723) 875 74 (89) (624) 82 (252) Depreciation and amortization 378 364 1,398 - 35 26 - 2,201 Consolidated profit and loss information as of December 31, 2016 Generation Distribution Oil and gas Refining and Petrochemicals Holding and others Eliminations Consolidated Total profit (loss) attributable to: Owners of the Company 1,045 (1,147) 627 74 (89) (603) 82 (11) Non - controlling interest 108 (576) 248 - - (21) - (241) Consolidated statement of financial position as of December 31,2016 Assets 19,577 17,219 19,414 6,259 2,812 19,494 (7,498) 77,277 Liabilities 8,632 18,856 11,662 3,267 2,401 25,883 (7,498) 63,203 Additional consolidated information as of December 31, 2016 Increases in property, plant and equipment 2,378 2,703 3,051 165 58 85 - 8,440 Increases in intangible assets 108 - 994 224 - - - 1,326 Consolidated profit and loss information at December 31, 2015 Generation Distribution Oil and gas Holding Eliminations Consolidated Revenue 2,418 3,802 848 38 - 7,106 Intersegment sales - - 96 16 (112) - Cost of sales (1,282) (5,189) (660) (3) 96 (7,038) Gross profit (loss) 1,136 (1,387) 284 51 (16) 68 Selling expenses (24) (833) (116) - - (973) Administrative expenses (262) (697) (150) (128) 16 (1,221) Exploration expenses - - (3) - - (3) Other operating income 91 5,656 552 218 - 6,517 Other operating expenses (79) (599) (82) (9) - (769) Reversal of impairment of property, plant and equipment 25 - - - - 25 Share of profit in joint ventures - - - 9 - 9 Share of loss in associates - - - (10) - (10) Operating profit 887 2,140 485 131 - 3,643 Finance income 295 96 1 26 (87) 331 Finance expenses (358) (577) (389) (20) 87 (1,257) Other financial results (82) (870) 419 2,252 - 1,719 Financial results, net (145) (1,351) 31 2,258 - 793 Profit before income tax 742 789 516 2,389 - 4,436 Income tax and minimum notional income tax (192) (176) (164) (55) - (587) Profit for the year 550 613 352 2,334 - 3,849 Depreciation and amortization 149 295 276 - - 720 Consolidated profit and loss information at December 31, 2015 Generation Distribution Oil and gas Holding Eliminations Consolidated Total profit attributable to: Owners of the Company 497 59 175 2,334 - 3,065 Non - controlling interest 53 554 177 - - 784 Consolidated statement of financial position as of December 31, 2015 Assets 8,051 11,737 3,970 6,563 (1,171) 29,150 Liabilities 5,956 11,673 3,361 950 (1,171) 20,769 Additional consolidated information as of December 31, 2015 Increases of property, plant and equipment 1,516 2,518 2,214 - - 6,248 |
36. RELATED PARTIES_ TRANSACT88
36. RELATED PARTIES´ TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Related Parties Transactions Tables | |
Sales of goods and services | 12.31.2017 12.31.2016 12.31.2015 Joint ventures: Transener (1) 28 15 15 TGS (2) 527 254 - Associates and other related parties: CYCSA - 14 2 TGS (2) - - 40 Refinor (3) 126 45 - Oldelval 4 1 - 685 329 57 (1) Corresponds to advisory services in technical assistance. (2) Corresponds to advisory services in technical assistance and gas and refined products sales. (3) Corresponds to oil sales. |
Purchases of goods and services | 12.31.2017 12.31.2016 12.31.2015 Joint ventures: Transener (7) (10) (5) TGS (1) (197) (132) - SACME (47) (35) (27) Associates and other related parties: Origenes Vida (13) (6) - TGS (1) - - (3) Refinor (2) (393) (117) - Oldelval (3) (74) (31) - (731) (331) (35) (1) Corresponds to natural gas transportation services. (2) Corresponds to purchase of refined products. (3) Corresponds to oil transportation services. |
Fees for services | 12.31.2017 12.31.2016 12.31.2015 Associates and other related parties: Salaverri, Dellatorre, Burgio & Wetzler (16) (23) (1) (16) (23) (1) |
Other operating income | 12.31.2017 12.31.2016 12.31.2015 Associates and other related parties: TGS - - 215 CYCSA - - 6 OCP - 150 - - 150 221 |
Other operating expenses | 12.31.2017 12.31.2016 12.31.2015 Associates and other related parties: OCP (1) (90) - - Foundation (2) (35) (13) (3) (125) (13) (3) (1) Corresponds to onerous contract (Ship or Pay). (2) Corresponds to donations. |
Financial income | 12.31.2017 12.31.2016 12.31.2015 Joint ventures: TGS 65 24 - 65 24 - |
Financial expenses | 12.31.2017 12.31.2016 12.31.2015 Associates and other related parties: TGS - - (12) Orígenes Retiro (6) (7) - Grupo EMES (1) - (417) - (6) (424) (12) (1) Note 20. |
Corporate bonds transactions | Purchase of Corporate Bonds 12.31.2017 12.31.2016 12.31.2015 Associates and other related parties: Orígenes Retiro - 666 - - 666 - Sale of Corporate Bonds 12.31.2017 12.31.2016 12.31.2015 Associates and other related parties: Orígenes Retiro - 590 - - 590 - |
Dividends received | 12.31.2017 12.31.2016 12.31.2015 Associates and other related parties: CIESA - 4 - Oldelval 7 - - TJSM 8 3 - TMB 10 3 - 25 10 - |
Payment of dividends | Associates and other related parties: 12.31.2017 12.31.2016 12.31.2015 EMESA (44) - - APCO Oil (44) (45) - Ultracore - (3) - (88) (48) - |
Balances with related parties | As of December 31, 2017 Trade receivables Other receivables Current Non Current Current Joint ventures: Transener 5 - - TGS 129 789 75 Greenwind - - 127 SACME - 5 - Associates and other related parties: Ultracore - - 10 Refinor 10 - - SACDE 25 - 2 Other 1 - 1 170 794 215 As of December 31, 2017 Trade payables Other payables Borrowings Provisions Current Current Non Current Current Current Joint ventures: TGS 17 - - - - SACME - 5 - - - Associates and other related parties: Orígenes Seguro de vida - - - 2 - Orígenes Retiro - - 14 2 - OCP - - - - 389 Refinor 53 - - - - Oldelval 9 - - - - Other - 7 - - - 80 12 14 4 389 As of December 31, 2016 Trade receivables Other receivables Current Non Current Current Joint ventures: Transener 10 - - TGS 90 733 88 SACME - 7 1 Associates and other related parties: Ultracore - - 4 Refinor 6 - 4 Oldelval 1 - - Other 1 - 1 108 740 98 As of December 31, 2016 Trade payables Other payables Borrowings Provisions Current Current Non Current Current Non Current Current Joint ventures: Transener 9 - - - - - TGS 116 - - - - - SACME - 5 - - - - Associates and other related parties: Orígenes Retiro - - 16 21 - - OCP - - - - 366 394 UTE Apache - 5 - - - - Refinor 32 - - - - - Oldelval 22 - - - - - Other 2 4 - - - - 181 14 16 21 366 394 |
37. FINANCIAL INSTRUMENTS (Tabl
37. FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Financial Instruments Tables | |
Financial instruments | As of December 31, 2017 Financial assets/liabilities at amortized cost Financial assets/liabilities at fair value through profit and loss Subtotal financial assets/liabilities Non financial assets/liabilities Total Assets Trade receivables and other receivables 21,512 590 22,102 2,085 24,187 Financial assets at amortized cost Government securities 11 - 11 - 11 Trusts 14 - 14 - 14 Financial assets at fair value through profit Government securities - 5,024 5,024 - 5,024 Shares - 150 150 - 150 Investment funds - 9,589 9,589 - 9,589 Derivative financial instruments - 4 4 - 4 Cash and cash equivalents 799 - 799 - 799 Total 22,336 15,357 37,693 2,085 39,778 Liabilities Trade and other liabilities 18,142 1,885 20,027 4,429 24,456 Borrowings 42,966 - 42,966 - 42,966 Derivative financial instruments - 82 82 - 82 Total 61,108 1,967 63,075 4,429 67,504 As of December 31, 2016 Financial assets/liabilities at amortized cost Financial assets/liabilities at fair value through profit and loss Subtotal financial assets/liabilities Non financial assets/liabilities Total Assets Trade receivables and other receivables 17,553 29 17,582 1,031 18,613 Financial assets at amortized cost Government securities 46 - 46 - 46 Corporate securities 1 - 1 - 1 Trusts 38 - 38 - 38 Financial assets at fair value through profit and loss Government securities - 1,576 1,576 - 1,576 Corporate securities - 12 12 - 12 Shares - 150 150 - 150 Investment funds - 3,189 3,189 - 3,189 Derivative financial instruments - 13 13 - 13 Cash and cash equivalents 1,360 61 1,421 - 1,421 Total 18,998 5,030 24,028 1,031 25,059 Liabilities Trade and other liabilities 13,016 1,347 14,363 3,840 18,203 Borrowings 25,972 - 25,972 - 25,972 Total 38,988 1,347 40,335 3,840 44,175 |
Income, expenses, gains and losses from financial instruments | As of December 31, 2017 Financial assets/liabilities at amortized cost Financial assets/liabilities at fair value through profit and loss Subtotal financial assets/liabilities Non Financial assets/ liabilities Total Interest income 1,277 155 1,432 - 1,432 Interest expense (4,767) - (4,767) (242) (5,009) Foreign exchange, net (4,353) 1,115 (3,238) (320) (3,558) Results from financial instruments at fair value - 1,471 1,471 - 1,471 Other financial results (245) - (245) (37) (282) Total (8,088) 2,741 (5,347) (599) (5,946) As of December 31, 2016 Financial assets/liabilities at amortized cost Financial assets/liabilities at fair value through profit and loss Subtotal financial assets/liabilities Non Financial assets/ liabilities Total Interest income 845 4 849 - 849 Interest expense (3,700) (417) (4,117) (66) (4,183) Foreign exchange, net (1,369) 250 (1,119) 20 (1,099) Results from financial instruments at fair value - 1,120 1,120 - 1,120 Other financial results (166) 3 (163) (32) (195) Total (4,390) 960 (3,430) (78) (3,508) As of December 31, 2015 Financial assets/liabilities at amortized cost Financial assets/liabilities at fair value through profit and loss Subtotal financial assets/liabilities Non Financial assets/ liabilities Total Interest income 327 4 331 - 331 Interest expense (1,137) - (1,137) (71) (1,208) Foreign exchange, net (1,027) 461 (566) - (566) Results from financial instruments at fair value - 2,271 2,271 - 2,271 Other financial results (17) 1 (16) (19) (35) Total (1,854) 2,737 883 (90) 793 |
39. LEASES (Tables)
39. LEASES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Leases Tables | |
Future minimum payments of operating assignments of use | 12.31.2017 12.31.2016 12.31.2015 2016 - - 48 2017 - 41 20 2018 84 8 6 2019 84 9 4 2020 35 6 - 2021 3 2 - Total future minimum lease payments 206 66 78 |
Future minimum collections from operating assignments of use | 12.31.2017 12.31.2016 12.31.2015 2016 - - 91 2017 137 109 85 2018 137 109 - 2019 131 103 - Total future minimum lease collections 405 321 176 |
40. OPERATIONS IN HYDROCARBON91
40. OPERATIONS IN HYDROCARBON CONSORTIUMS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Operations In Hydrocarbon Consortiums Tables | |
Participation in exploration and production of oil and gas areas | Participation Duration Up To Name Note Location Direct Indirect Operator Argentine production 25 de Mayo - Medanito S.E. (g) Río Negro 100.00% - PAMPA 2,026 Jagüel de los Machos (g) Río Negro 100.00% - PAMPA 2,025 Bajada del Palo (g) Neuquén 3.85% 43.07% PELSA 2,025 Río Neuquén (g) Río Negro and Neuquén 33.07% - YPF 2027/2051 Entre Lomas (g) Río Negro and Neuquén 3.85% 43.07% PELSA 2,026 Sierra Chata Neuquén 45.56% - PAMPA 2,023 El Mangrullo Neuquén 100.00% - PAMPA 2,025 La Tapera - Puesto Quiroga Chubut 35.67% - Tecpetrol 2,027 El Tordillo Chubut 35.67% - Tecpetrol 2,027 Aguaragüe Salta 15.00% - Tecpetrol 2023/2027 Gobernador Ayala (a) Mendoza 22.51% - Pluspetrol 2,036 Charco del Palenque - Jarilla Quemada (g) Río Negro 3.85% 43.07% PELSA 2034/2040 Anticlinal Neuquén 15.00% - YPF 2,026 Estación Fernández Oro (e) Río Negro 15.00% - YPF 2,026 Rincón del Mangrullo (e) Neuquén 50.00% - YPF 2,051 Senillosa (f) Neuquén 85.00% - PAMPA 2,040 Foreign Oritupano - Leona Venezuela - 22.00% PDVSA 2,025 Acema Venezuela - 34.49% PDVSA 2,025 La Concepción Venezuela - 36.00% PDVSA 2,025 Mata Venezuela - 34.49% PDVSA 2,025 Argentine exploration Parva Negra Este Neuquén 42.50% - PAMPA 2,018 Enarsa 1 (E1) (c) Argentine Continental Shelf 25.00% - YPF - Enarsa 3 (E3) (c) Argentine Continental Shelf 35.00% - PAMPA - Chirete Salta 50.00% - High Luck Group Limited 2,017 Río Atuel Mendoza 33.33% - Tecpetrol 2,018 Borde del Limay (b) Neuquén 85.00% - PAMPA 2,014 Los Vértices (b) Neuquén 85.00% - PAMPA 2,014 Veta Escondida y Rincón de Aranda Neuquén 55.00% - PAMPA 2,027 (a) The granting of the concession is in progress and the term will be 25 years from such granting. (b) It is in process of returning to Gas y Petróleo del Neuquén SA (“GyP”, permit holder). (c) The Company, in compliance with section 5.2 of the respective partnership agreements, informed to the partners of Enarsa 1 and Enarsa 3, its decision not to participate in retraining them in exploration permits according to section 30 of Law 27.007. (d) Within the concession agreement renegotiation with the Province of Río Negro, it was agreed to assign to EDHIPSA 5% of the rights and obligations inherent to the production concession in Rio Neuquén area in the Province of Río Negro, to be assumed in equal parts by the partners. (e) The 15% interest in the assets corresponds to 12 wells in the Estación Fernandez Oro area and 10 wells in the Anticlinal area. (f) The company is currently conducting a process for the total reversal of the area. (g) In January 2018, the Company decided to sell these interests (Note 1). |
Exploratory well costs | 12.31.2017 12.31.2016 12.31.2015 At the beginning of the year 274 113 30 Increase for subsidiaries acquisition - 227 - Increases 196 102 86 Transferred to development (177) (57) - Loss of the year (27) (111) (3) At the end of the year 266 274 113 Number of wells at the end of the year 7 7 6 |
Estimated 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 32,935 12,646 8,695 8,667 41,630 21,313 Total at 12.31.2017 32,935 12,646 8,695 8,667 41,630 21,313 (1) (2) |
45. COMPENSATION PLANS (Tables)
45. COMPENSATION PLANS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Compensation Plans Tables | |
Opportunities Assignment Agreement Expiration dates and exercise prices of purchase options | Expiration Price of the year (U$S) Stock Options 04.26.2024 0.27 111,500,000 04.26.2024 0.27 150,000,000 04.26.2024 0.27 120,048,564 |
Warrants activity related to Opportunities Assignment Agreement | 12.31.2015 Stock options Average price of the year in US$ At the beginning 381,548,564 0.27 Executed (381,548,564) 0.27 At the end - - |
1. GENERAL INFORMATION AND GR93
1. GENERAL INFORMATION AND GROUP STRUCTURE (Details) - PPSL $ in Millions | Jul. 27, 2016ARS ($) |
Disclosure of detailed information about business combination [line items] | |
Cash payment | $ 13,362 |
Total consideration transferred | 13,362 |
Total purchase price allocation | 13,362 |
Investments in joint ventures | |
Disclosure of detailed information about business combination [line items] | |
Total purchase price allocation | 3,407 |
Investments in associates | |
Disclosure of detailed information about business combination [line items] | |
Total purchase price allocation | 777 |
Financial assets at amortized cost | |
Disclosure of detailed information about business combination [line items] | |
Total purchase price allocation | 21,801 |
Intangible assets | |
Disclosure of detailed information about business combination [line items] | |
Total purchase price allocation | 224 |
Financial assets at fair value through profit and loss | |
Disclosure of detailed information about business combination [line items] | |
Total purchase price allocation | 653 |
Financial assets at amortized cost | |
Disclosure of detailed information about business combination [line items] | |
Total purchase price allocation | 315 |
Trade and other receivables | |
Disclosure of detailed information about business combination [line items] | |
Total purchase price allocation | 7,256 |
Inventories | |
Disclosure of detailed information about business combination [line items] | |
Total purchase price allocation | 3,072 |
Cash and cash equivalents | |
Disclosure of detailed information about business combination [line items] | |
Total purchase price allocation | 4,384 |
Non current assets classified as held for sale | |
Disclosure of detailed information about business combination [line items] | |
Total purchase price allocation | 3,405 |
Trade and other payables | |
Disclosure of detailed information about business combination [line items] | |
Total purchase price allocation | (4,324) |
Borrowings | |
Disclosure of detailed information about business combination [line items] | |
Total purchase price allocation | (7,434) |
Salaries and social security payable | |
Disclosure of detailed information about business combination [line items] | |
Total purchase price allocation | (383) |
Defined benefit plans | |
Disclosure of detailed information about business combination [line items] | |
Total purchase price allocation | (484) |
Deferred tax liabilities | |
Disclosure of detailed information about business combination [line items] | |
Total purchase price allocation | (4,096) |
Taxes payables | |
Disclosure of detailed information about business combination [line items] | |
Total purchase price allocation | (859) |
Provisions | |
Disclosure of detailed information about business combination [line items] | |
Total purchase price allocation | (5,793) |
Liabilities associated with assets classified as held for sale | |
Disclosure of detailed information about business combination [line items] | |
Total purchase price allocation | (240) |
Income tax and minimum notional income tax provision | |
Disclosure of detailed information about business combination [line items] | |
Total purchase price allocation | (1,444) |
Non-controlling interest | |
Disclosure of detailed information about business combination [line items] | |
Total purchase price allocation | (7,869) |
Goodwill | |
Disclosure of detailed information about business combination [line items] | |
Total purchase price allocation | $ 994 |
1. GENERAL INFORMATION AND GR94
1. GENERAL INFORMATION AND GROUP STRUCTURE (Details 1) - ARS ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
DisclosureOfDiscontinuedOperationsLineItems [Line Items] | |||
Revenue | $ 50,347 | $ 25,110 | $ 7,106 |
Cost of sales | (34,427) | (20,153) | (7,038) |
Gross profit | 15,920 | 4,957 | 68 |
Selling expenses | 2,904 | 2,132 | 973 |
Administrative expenses | 4,905 | 3,628 | 1,221 |
Exploration expenses | 44 | 94 | 3 |
Other operating income | 3,388 | 4,164 | 6,517 |
Other operating expenses | 2,951 | 1,876 | 769 |
Operating income (loss) | 10,155 | 1,983 | 3,643 |
Finance income | 1,432 | 849 | 331 |
Finance costs | (5,112) | (4,277) | (1,257) |
Other financial results | (2,266) | (80) | 1,719 |
Financial results, net | (5,946) | (3,508) | 793 |
Income (loss) before income tax | 4,209 | (1,525) | 4,436 |
Income tax and minimum notional income tax | (1,367) | (1,201) | 587 |
Profit (loss) of the year from discontinued operations | 94 | 72 | 0 |
Items that will not be reclassified to profit or loss | |||
Remeasurements related to defined benefit plans | 1 | (30) | (1) |
Income tax | 0 | (10) | 0 |
Items that may be reclassified to profit or loss | |||
Exchange differences on translation | (93) | (15) | 0 |
Other comprehensive income of the year from discontinued operations | 603 | 249 | 0 |
Profit (loss) of the year for discontinued operations | |||
Owners of the company | (17) | 82 | 0 |
Profit (loss) of the year from discontinued operations | 94 | 72 | 0 |
Total comprehensive income (loss) of the year for discontinued operations attributable to: | |||
Owners of the company | 266 | 232 | 0 |
Oil and gas | |||
DisclosureOfDiscontinuedOperationsLineItems [Line Items] | |||
Revenue | 8,831 | 4,863 | 848 |
Cost of sales | (6,581) | (3,737) | (660) |
Gross profit | 4,060 | 1,842 | 284 |
Selling expenses | 455 | 334 | 116 |
Administrative expenses | 975 | 632 | 150 |
Exploration expenses | 44 | 94 | 3 |
Other operating income | 2,522 | 1,892 | 552 |
Other operating expenses | 776 | 826 | 82 |
Operating income (loss) | 4,376 | 1,859 | 485 |
Finance income | 96 | 103 | 1 |
Finance costs | (245) | (730) | (389) |
Other financial results | (193) | 22 | 419 |
Financial results, net | (342) | (605) | 31 |
Income (loss) before income tax | 4,034 | 1,254 | 516 |
Income tax and minimum notional income tax | 389 | 305 | 164 |
Profit (loss) of the year from discontinued operations | 121 | (74) | |
Profit (loss) of the year for discontinued operations | |||
Profit (loss) of the year from discontinued operations | 121 | (74) | |
Eliminations | |||
DisclosureOfDiscontinuedOperationsLineItems [Line Items] | |||
Revenue | 0 | 0 | 0 |
Cost of sales | 1,837 | 740 | 96 |
Gross profit | (46) | (19) | (16) |
Selling expenses | (14) | 0 | 0 |
Administrative expenses | (40) | (28) | (16) |
Exploration expenses | 0 | 0 | 0 |
Other operating income | (4) | (61) | 0 |
Other operating expenses | 0 | (64) | 0 |
Operating income (loss) | 4 | 12 | 0 |
Finance income | (41) | (167) | (87) |
Finance costs | 41 | 168 | 87 |
Other financial results | 0 | (2) | 0 |
Financial results, net | 0 | (1) | 0 |
Income (loss) before income tax | 4 | 11 | 0 |
Income tax and minimum notional income tax | 0 | 0 | $ 0 |
Profit (loss) of the year from discontinued operations | 16 | 71 | |
Profit (loss) of the year for discontinued operations | |||
Profit (loss) of the year from discontinued operations | 16 | 71 | |
Discontinued operations | |||
DisclosureOfDiscontinuedOperationsLineItems [Line Items] | |||
Revenue | 15,877 | 6,185 | |
Cost of sales | (12,190) | (4,983) | |
Gross profit | 3,687 | 1,202 | |
Selling expenses | (2,139) | (820) | |
Administrative expenses | (207) | (48) | |
Exploration expenses | (19) | (41) | |
Other operating income | 600 | 317 | |
Other operating expenses | (291) | (377) | |
Impairment of non current assets classified as held for sale | (687) | 233 | |
Operating income (loss) | 944 | ||
Finance income | 37 | 44 | |
Finance costs | (16) | (19) | |
Other financial results | (253) | (83) | |
Financial results, net | (232) | (58) | |
Income (loss) before income tax | 712 | 175 | |
Income tax and minimum notional income tax | (618) | (103) | |
Profit (loss) of the year from discontinued operations | 94 | 72 | |
Items that will not be reclassified to profit or loss | |||
Remeasurements related to defined benefit plans | 10 | (48) | |
Income tax | (180) | 17 | |
Items that may be reclassified to profit or loss | |||
Exchange differences on translation | 773 | 280 | |
Other comprehensive income of the year from discontinued operations | 603 | 249 | |
Total comprehensive income (loss) of the year for discontinued operations | 697 | 321 | |
Profit (loss) of the year for discontinued operations | |||
Owners of the company | (17) | 82 | |
Non - controlling interest | 111 | (10) | |
Profit (loss) of the year from discontinued operations | 94 | 72 | |
Total comprehensive income (loss) of the year for discontinued operations attributable to: | |||
Owners of the company | 266 | 232 | |
Non - controlling interest | 431 | 89 | |
Total comprehensive income (loss) | 697 | 321 | |
Discontinued operations | Oil and gas | |||
DisclosureOfDiscontinuedOperationsLineItems [Line Items] | |||
Revenue | 5,972 | 2,456 | |
Cost of sales | (4,840) | (1,941) | |
Gross profit | 1,132 | 515 | |
Selling expenses | (182) | (63) | |
Administrative expenses | (127) | (25) | |
Exploration expenses | (19) | (41) | |
Other operating income | 377 | 235 | |
Other operating expenses | (181) | (656) | |
Impairment of non current assets classified as held for sale | 0 | (35) | |
Operating income (loss) | 1,000 | ||
Finance income | 22 | 38 | |
Finance costs | 0 | (10) | |
Other financial results | (239) | (43) | |
Financial results, net | (217) | (15) | |
Income (loss) before income tax | 783 | (50) | |
Income tax and minimum notional income tax | (662) | (24) | |
Profit (loss) of the year from discontinued operations | 121 | (74) | |
Items that will not be reclassified to profit or loss | |||
Remeasurements related to defined benefit plans | (7) | (62) | |
Income tax | (174) | 22 | |
Items that may be reclassified to profit or loss | |||
Exchange differences on translation | 773 | 280 | |
Other comprehensive income of the year from discontinued operations | 592 | 240 | |
Total comprehensive income (loss) of the year for discontinued operations | 713 | 166 | |
Profit (loss) of the year for discontinued operations | |||
Owners of the company | 10 | (64) | |
Non - controlling interest | 111 | (10) | |
Profit (loss) of the year from discontinued operations | 121 | (74) | |
Total comprehensive income (loss) of the year for discontinued operations attributable to: | |||
Owners of the company | 282 | 77 | |
Non - controlling interest | 431 | 89 | |
Total comprehensive income (loss) | 713 | 166 | |
Discontinued operations | Refining y distribution | |||
DisclosureOfDiscontinuedOperationsLineItems [Line Items] | |||
Revenue | 16,795 | 6,550 | |
Cost of sales | (14,256) | (5,973) | |
Gross profit | 2,539 | 577 | |
Selling expenses | (1,957) | (757) | |
Administrative expenses | (80) | (23) | |
Exploration expenses | 0 | 0 | |
Other operating income | 223 | 459 | |
Other operating expenses | (110) | (98) | |
Impairment of non current assets classified as held for sale | (687) | 158 | |
Operating income (loss) | (72) | ||
Finance income | 15 | 6 | |
Finance costs | (16) | (9) | |
Other financial results | (14) | (40) | |
Financial results, net | (15) | (43) | |
Income (loss) before income tax | (87) | 115 | |
Income tax and minimum notional income tax | 44 | (40) | |
Profit (loss) of the year from discontinued operations | (43) | 75 | |
Items that will not be reclassified to profit or loss | |||
Remeasurements related to defined benefit plans | 17 | 14 | |
Income tax | (6) | (5) | |
Items that may be reclassified to profit or loss | |||
Exchange differences on translation | 0 | 0 | |
Other comprehensive income of the year from discontinued operations | 11 | 9 | |
Total comprehensive income (loss) of the year for discontinued operations | (32) | 84 | |
Profit (loss) of the year for discontinued operations | |||
Owners of the company | (43) | 75 | |
Non - controlling interest | 0 | 0 | |
Profit (loss) of the year from discontinued operations | (43) | 75 | |
Total comprehensive income (loss) of the year for discontinued operations attributable to: | |||
Owners of the company | (32) | 84 | |
Non - controlling interest | 0 | 0 | |
Total comprehensive income (loss) | (32) | 84 | |
Discontinued operations | Eliminations | |||
DisclosureOfDiscontinuedOperationsLineItems [Line Items] | |||
Revenue | (6,890) | (2,821) | |
Cost of sales | 6,906 | 2,931 | |
Gross profit | 16 | 110 | |
Selling expenses | 0 | 0 | |
Administrative expenses | 0 | 0 | |
Exploration expenses | 0 | 0 | |
Other operating income | 0 | (377) | |
Other operating expenses | 0 | 377 | |
Impairment of non current assets classified as held for sale | 0 | 110 | |
Operating income (loss) | 16 | ||
Finance income | 0 | 0 | |
Finance costs | 0 | 0 | |
Other financial results | 0 | 0 | |
Financial results, net | 0 | 0 | |
Income (loss) before income tax | 16 | 110 | |
Income tax and minimum notional income tax | 0 | (39) | |
Profit (loss) of the year from discontinued operations | 16 | 71 | |
Items that will not be reclassified to profit or loss | |||
Remeasurements related to defined benefit plans | 0 | 0 | |
Income tax | 0 | 0 | |
Items that may be reclassified to profit or loss | |||
Exchange differences on translation | 0 | 0 | |
Other comprehensive income of the year from discontinued operations | 0 | 0 | |
Total comprehensive income (loss) of the year for discontinued operations | 16 | 71 | |
Profit (loss) of the year for discontinued operations | |||
Owners of the company | 16 | 71 | |
Non - controlling interest | 0 | 0 | |
Profit (loss) of the year from discontinued operations | 16 | 71 | |
Total comprehensive income (loss) of the year for discontinued operations attributable to: | |||
Owners of the company | 16 | 71 | |
Non - controlling interest | 0 | 0 | |
Total comprehensive income (loss) | $ 16 | $ 71 |
1. GENERAL INFORMATION AND GR95
1. GENERAL INFORMATION AND GROUP STRUCTURE (Details 2) - ARS ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
General Information And Group Structure Details 2 | |||
Net cash generated by operating activities | $ 1,979 | $ 1,549 | $ 0 |
Net cash used in investing activities | (1,176) | (661) | 0 |
Net cash (used in) generated by financing activities | (719) | (922) | 0 |
Increase (Decrease) in cash and cash equivalents from discontinued operations | 84 | (34) | |
Cash and cash equivalents at the beginning of the year | 77 | 111 | |
Increase (Decrease) in cash and cash equivalents | 84 | (34) | |
Cash and cash equivalents at the end of the year | $ 161 | $ 77 | $ 111 |
1. GENERAL INFORMATION AND GR96
1. GENERAL INFORMATION AND GROUP STRUCTURE (Details 3) - ARS ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
NON CURRENT ASSETS | ||||
Property, plant and equipment | $ 41,214 | $ 41,001 | ||
Intangible assets | 1,586 | 2,103 | ||
Financial assets at amortized cost | 0 | 62 | ||
Trade and other receivables | 5,042 | 4,469 | ||
Total non current assets | 55,054 | 54,108 | ||
CURRENT ASSETS | ||||
Inventories | 2,326 | 3,360 | $ 225 | $ 136 |
Financial assets at fair value through profit and loss | 14,613 | 4,188 | ||
Trade and other receivables | 19,145 | 14,144 | ||
Cash and cash equivalents | 799 | 1,421 | $ 517 | $ 335 |
Total current assets | 36,912 | 23,150 | ||
Assets classified as held for sale | 12,501 | 19 | ||
NON CURRENT LIABILITIES | ||||
Defined benefit plans | 992 | 921 | ||
Deferred tax liabilities | 1,526 | 3,796 | ||
Provisions | 4,435 | 6,267 | ||
Total non current liabilities | 52,027 | 33,140 | ||
CURRENT LIABILITIES | ||||
Trade and other payables | 18,052 | 12,867 | ||
Salaries and social security payable | 2,154 | 1,745 | ||
Defined benefit plans | 121 | 112 | ||
Income tax and minimum notional income tax provision | 943 | 1,454 | ||
Taxes payables | 1,965 | 2,392 | ||
Provisions | 798 | 806 | ||
Total current liabilities | 29,958 | 30,063 | ||
Liabilities associated to assets classified as held for sale | 2,370 | 0 | ||
Discontinued operations | ||||
NON CURRENT ASSETS | ||||
Property, plant and equipment | 8,664 | 0 | ||
Intangible assets | 415 | 0 | ||
Financial assets at amortized cost | 35 | 19 | ||
Trade and other receivables | 6 | 0 | ||
Total non current assets | 9,120 | 19 | ||
CURRENT ASSETS | ||||
Inventories | 2,113 | 0 | ||
Financial assets at fair value through profit and loss | 681 | 0 | ||
Trade and other receivables | 426 | 0 | ||
Cash and cash equivalents | 161 | 0 | ||
Total current assets | 3,381 | 0 | ||
Assets classified as held for sale | 12,501 | 19 | ||
NON CURRENT LIABILITIES | ||||
Defined benefit plans | 155 | 0 | ||
Deferred tax liabilities | 567 | 0 | ||
Provisions | 974 | 0 | ||
Total non current liabilities | 1,696 | 0 | ||
CURRENT LIABILITIES | ||||
Trade and other payables | 390 | 0 | ||
Salaries and social security payable | 47 | 0 | ||
Defined benefit plans | 8 | 0 | ||
Income tax and minimum notional income tax provision | 26 | 0 | ||
Taxes payables | 117 | 0 | ||
Provisions | 86 | 0 | ||
Total current liabilities | 674 | 0 | ||
Liabilities associated to assets classified as held for sale | 2,370 | $ 0 | ||
Discontinued operations | Oil and gas | ||||
NON CURRENT ASSETS | ||||
Property, plant and equipment | 7,545 | |||
Intangible assets | 311 | |||
Financial assets at amortized cost | 35 | |||
Trade and other receivables | 6 | |||
Total non current assets | 7,897 | |||
CURRENT ASSETS | ||||
Inventories | 153 | |||
Financial assets at fair value through profit and loss | 681 | |||
Trade and other receivables | 426 | |||
Cash and cash equivalents | 161 | |||
Total current assets | 1,421 | |||
Assets classified as held for sale | 9,318 | |||
NON CURRENT LIABILITIES | ||||
Defined benefit plans | 97 | |||
Deferred tax liabilities | 567 | |||
Provisions | 922 | |||
Total non current liabilities | 1,586 | |||
CURRENT LIABILITIES | ||||
Trade and other payables | 390 | |||
Salaries and social security payable | 47 | |||
Defined benefit plans | 2 | |||
Income tax and minimum notional income tax provision | 26 | |||
Taxes payables | 117 | |||
Provisions | 51 | |||
Total current liabilities | 633 | |||
Liabilities associated to assets classified as held for sale | 2,219 | |||
Discontinued operations | Refining y distribution | ||||
NON CURRENT ASSETS | ||||
Property, plant and equipment | 1,119 | |||
Intangible assets | 104 | |||
Financial assets at amortized cost | 0 | |||
Trade and other receivables | 0 | |||
Total non current assets | 1,223 | |||
CURRENT ASSETS | ||||
Inventories | 1,960 | |||
Financial assets at fair value through profit and loss | 0 | |||
Trade and other receivables | 0 | |||
Cash and cash equivalents | 0 | |||
Total current assets | 1,960 | |||
Assets classified as held for sale | 3,183 | |||
NON CURRENT LIABILITIES | ||||
Defined benefit plans | 58 | |||
Deferred tax liabilities | 0 | |||
Provisions | 52 | |||
Total non current liabilities | 110 | |||
CURRENT LIABILITIES | ||||
Trade and other payables | 0 | |||
Salaries and social security payable | 0 | |||
Defined benefit plans | 6 | |||
Income tax and minimum notional income tax provision | 0 | |||
Taxes payables | 0 | |||
Provisions | 35 | |||
Total current liabilities | 41 | |||
Liabilities associated to assets classified as held for sale | $ 151 |
2. REGULATORY FRAMEWORK (Detail
2. REGULATORY FRAMEWORK (Details) | 12 Months Ended | |
Dec. 31, 2017 | ||
Generator in operation 1 | ||
DisclosureOfRegulatoryFrameworkLineItems [Line Items] | ||
Generator | CTG | |
Generating unit | GUEMTG01 | |
Tecnology | TG | |
Power | 101 MW | |
Applicable regime | Energy Plus Res. N° 1281/06 and SEE Resoluion N° 19/2017 | [1] |
Generator in operation 2 | ||
DisclosureOfRegulatoryFrameworkLineItems [Line Items] | ||
Generator | CTG | |
Generating unit | GUEMTV11 | |
Tecnology | TV | |
Power | less than or equal to 100 MW | |
Applicable regime | SE Resolutions No. 22/2016 and 19/2017 | |
Generator in operation 3 | ||
DisclosureOfRegulatoryFrameworkLineItems [Line Items] | ||
Generator | CTG | |
Generating unit | GUEMTV12 | |
Tecnology | TV | |
Power | less than or equal to 100 MW | |
Applicable regime | SE Resolutions No. 22/2016 and 19/2017 | |
Generator in operation 4 | ||
DisclosureOfRegulatoryFrameworkLineItems [Line Items] | ||
Generator | CTG | |
Generating unit | GUEMTV13 | |
Tecnology | TV | |
Power | greather than 100 MW | |
Applicable regime | SE Resolutions No. 22/2016 and 19/2017 | |
Generator in operation 5 | ||
DisclosureOfRegulatoryFrameworkLineItems [Line Items] | ||
Generator | Piquirenda | |
Generating unit | PIQIDI 01-10 | |
Tecnology | MG | |
Power | 30 MW | |
Applicable regime | SE Resolution No. 220/2007 | [1] |
Generator in operation 6 | ||
DisclosureOfRegulatoryFrameworkLineItems [Line Items] | ||
Generator | CPB | |
Generating unit | BBLATV29 | |
Tecnology | TV | |
Power | greater than 100 MW | |
Applicable regime | SE Resolutions No. 22/2016 and 19/2017 | |
Generator in operation 7 | ||
DisclosureOfRegulatoryFrameworkLineItems [Line Items] | ||
Generator | CPB | |
Generating unit | BBLATV30 | |
Tecnology | TV | |
Power | greater than 100 MW | |
Applicable regime | SE Resolutions No. 22/2016 and 19/2017 | |
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. 21/2016 | [1] |
Generator in operation 9 | ||
DisclosureOfRegulatoryFrameworkLineItems [Line Items] | ||
Generator | CTLL | |
Generating unit | LDLATG01 | |
Tecnology | TG | |
Power | greater than 50 MW | |
Applicable regime | SE Resolutions No. 22/2016 and 19/2017 | |
Generator in operation 10 | ||
DisclosureOfRegulatoryFrameworkLineItems [Line Items] | ||
Generator | CTLL | |
Generating unit | LDLATG02 | |
Tecnology | TG | |
Power | greater than 50 MW | |
Applicable regime | SE Resolutions No. 22/2016 and 19/2017 | |
Generator in operation 11 | ||
DisclosureOfRegulatoryFrameworkLineItems [Line Items] | ||
Generator | CTLL | |
Generating unit | LDLATG03 | |
Tecnology | TG | |
Power | greater than 50 MW | |
Applicable regime | SE Resolutions No. 22/2016 and 19/2017 | |
Generator in operation 12 | ||
DisclosureOfRegulatoryFrameworkLineItems [Line Items] | ||
Generator | CTLL | |
Generating unit | LDLATG04 | |
Tecnology | TG | |
Power | 105 MW | |
Applicable regime | SEE Res. 220/2007 (75%), SEE Res. 22/2016 and 19/2017 (25%) | |
Generator in operation 13 | ||
DisclosureOfRegulatoryFrameworkLineItems [Line Items] | ||
Generator | CTLL | |
Generating unit | LDLATG05 | |
Tecnology | TG | |
Power | 105 MW | |
Applicable regime | SEE Resolution No. 21/2016 | [1] |
Generator in operation 14 | ||
DisclosureOfRegulatoryFrameworkLineItems [Line Items] | ||
Generator | CTLL | |
Generating unit | LDLATV01 | |
Tecnology | TV | |
Power | 180 MW | |
Applicable regime | SE Resolution No. 220/2007 | [1] |
Generator in operation 15 | ||
DisclosureOfRegulatoryFrameworkLineItems [Line Items] | ||
Generator | CTGEBA | |
Generating unit | GEBATG01/TG02/TV01 | |
Tecnology | CC | |
Power | greater than 150 MW | |
Applicable regime | SE Resolutions No. 22/2016 and 19/2017 | |
Generator in operation 16 | ||
DisclosureOfRegulatoryFrameworkLineItems [Line Items] | ||
Generator | CTGEBA | |
Generating unit | GEBATG03 | |
Tecnology | TG | |
Power | 164 MW | |
Applicable regime | Energy Plus Res. N° 1281/06 | |
Generator in operation 17 | ||
DisclosureOfRegulatoryFrameworkLineItems [Line Items] | ||
Generator | HIDISA | |
Generating unit | AGUA DEL TORO | |
Tecnology | HI | |
Power | HI Media 120 greater than P less than or equal to 300 | |
Applicable regime | SE Resolutions No. 22/2016 and 19/2017 | |
Generator in operation 18 | ||
DisclosureOfRegulatoryFrameworkLineItems [Line Items] | ||
Generator | HIDISA | |
Generating unit | EL TIGRE | |
Tecnology | HI | |
Power | Renewable less than or equal to 50 | |
Applicable regime | SE Resolutions No. 22/2016 and 19/2017 | |
Generator in operation 19 | ||
DisclosureOfRegulatoryFrameworkLineItems [Line Items] | ||
Generator | HIDISA | |
Generating unit | LOS REYUNOS | |
Tecnology | HI | |
Power | HI Media 120 greater than P less than or equal to 300 | |
Applicable regime | SE Resolutions No. 22/2016 and 19/2017 | |
Generator in operation 20 | ||
DisclosureOfRegulatoryFrameworkLineItems [Line Items] | ||
Generator | HINISA | |
Generating unit | NIHUIL I | |
Tecnology | HI | |
Power | HI Small 50 greater than P less than or equal to 120 | |
Applicable regime | SE Resolutions No. 22/2016 and 19/2017 | [2] |
Generator in operation 21 | ||
DisclosureOfRegulatoryFrameworkLineItems [Line Items] | ||
Generator | HINISA | |
Generating unit | NIHUIL II | |
Tecnology | HI | |
Power | HI Small 50 greater than P less than or equal to 120 | |
Applicable regime | SE Resolutions No. 22/2016 and 19/2017 | [2] |
Generator in operation 22 | ||
DisclosureOfRegulatoryFrameworkLineItems [Line Items] | ||
Generator | HINISA | |
Generating unit | NIHUIL III | |
Tecnology | HI | |
Power | HI Small 50 greater than P less than or equal to 120 | |
Applicable regime | SE Resolutions No. 22/2016 and 19/2017 | [2] |
Generator in operation 23 | ||
DisclosureOfRegulatoryFrameworkLineItems [Line Items] | ||
Generator | HPPL | |
Generating unit | PPL1HI | |
Tecnology | HI | |
Power | HI Media 120 greater than P less than or equal to 300 | |
Applicable regime | SE Resolutions No. 22/2016 and 19/2017 | |
Generator in operation 24 | ||
DisclosureOfRegulatoryFrameworkLineItems [Line Items] | ||
Generator | HPPL | |
Generating unit | PPL2HI | |
Tecnology | HI | |
Power | HI Media 120 greater than P less than or equal to 300 | |
Applicable regime | SE Resolutions No. 22/2016 and 19/2017 | |
Generator in operation 25 | ||
DisclosureOfRegulatoryFrameworkLineItems [Line Items] | ||
Generator | HPPL | |
Generating unit | PPL3HI | |
Tecnology | HI | |
Power | HI Media 120 greater than P less than or equal to 300 | |
Applicable regime | SE Resolutions No. 22/2016 and 19/2017 | |
Generator in operation 26 | ||
DisclosureOfRegulatoryFrameworkLineItems [Line Items] | ||
Generator | Ecoenergía | |
Generating unit | CERITV01 | |
Tecnology | TV | |
Power | 15 MW | |
Applicable regime | Energy Plus Res. N° 1281/06 | [1] |
Generator in operation 27 | ||
DisclosureOfRegulatoryFrameworkLineItems [Line Items] | ||
Generator | CT Parque Pilar | |
Generating unit | PILBD01-06 | |
Tecnology | MG | |
Power | 100 MW | |
Applicable regime | SEE Resolution No. 21/2016 | [1] |
[1] | Uncommitted power and energy is remunerated according to Resolution No. 19/2017. | |
[2] | On April 10, 2017, the SEE ordered the recategorization of the units as small scale in line with the provisions of Resolution No. 19/2017. The recategorization represents an increase of 50% in the base remuneration of the power as of said date. |
2. REGULATORY FRAMEWORK (Deta98
2. REGULATORY FRAMEWORK (Details 1) | 12 Months Ended |
Dec. 31, 2017 | |
Generator in construction 1 | |
DisclosureOfRegulatoryFrameworkLineItems [Line Items] | |
Generator | CTLL |
Generating unit | MG |
Tecnology | 15 MW |
Applicable regime | SE Resolution No. 19/2017 |
Generator in construction 2 | |
DisclosureOfRegulatoryFrameworkLineItems [Line Items] | |
Generator | Greenwind |
Generating unit | Wind |
Tecnology | 100 MW |
Applicable regime | Renovar |
Generator in construction 3 | |
DisclosureOfRegulatoryFrameworkLineItems [Line Items] | |
Generator | CTGEBA |
Generating unit | CC |
Tecnology | 383 MW |
Applicable regime | Resolution No. 420/2017 |
2. REGULATORY FRAMEWORK (Deta99
2. REGULATORY FRAMEWORK (Details 2) $ in Millions | 12 Months Ended |
Dec. 31, 2016ARS ($) | |
Res. No. 6 and 41 /2016 | |
DisclosureOfRegulatoryFrameworkLineItems [Line Items] | |
Payables for purchase of electricity - CAMMESA | $ (270) |
Purchase of electricity | 270 |
Income recognition of Note No. 2016-04484723 | 0 |
Res. ENRE No. 1/2016 | |
DisclosureOfRegulatoryFrameworkLineItems [Line Items] | |
Payables for purchase of electricity - CAMMESA | (1,126) |
Purchase of electricity | 0 |
Income recognition of Note No. 2016-04484723 | $ 1,126 |
2. REGULATORY FRAMEWORK (Det100
2. REGULATORY FRAMEWORK (Details Narrative) - ARS ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Transener | ||
DisclosureOfRegulatoryFrameworkLineItems [Line Items] | ||
Revenues from sales | $ 398 | $ 1,062 |
Gain on interest | 14 | 105 |
Transba | ||
DisclosureOfRegulatoryFrameworkLineItems [Line Items] | ||
Revenues from sales | 66 | 452 |
Gain on interest | $ 1 | $ 22 |
4. ACCOUNTING POLICIES (Details
4. ACCOUNTING POLICIES (Details) | 12 Months Ended |
Dec. 31, 2017 | |
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 and fixtures and software 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 |
6. FINANCIAL RISK MANAGEMENT (D
6. FINANCIAL RISK MANAGEMENT (Details) € in Millions, kr in Millions, SFr in Millions, $ in Millions, $ in Millions, in Millions | Dec. 31, 2017ARS ($)$ / $$ / €$ / SFr$ / kr | Dec. 31, 2017USD ($)$ / $$ / €$ / SFr$ / kr | Dec. 31, 2017EUR (€)$ / $$ / €$ / SFr$ / kr | Dec. 31, 2017CHF (SFr)$ / $$ / €$ / SFr$ / kr | Dec. 31, 2017VEF ( )$ / $$ / €$ / SFr$ / kr | Dec. 31, 2017SEK (kr)$ / $$ / €$ / SFr$ / kr | Dec. 31, 2016ARS ($) | |
DisclosureOfExposureToTheExchangeRateRiskForFinancialAssetsAndLiabilitiesLineItems [Line Items] | ||||||||
Exposure to the exchange rate risk for financial assets | $ (32,698) | $ (15,678) | ||||||
Total non current liabilities | ||||||||
DisclosureOfExposureToTheExchangeRateRiskForFinancialAssetsAndLiabilitiesLineItems [Line Items] | ||||||||
Exposure to the exchange rate risk for financial assets | 34,204 | 14,497 | ||||||
Total current liabilities | ||||||||
DisclosureOfExposureToTheExchangeRateRiskForFinancialAssetsAndLiabilitiesLineItems [Line Items] | ||||||||
Exposure to the exchange rate risk for financial assets | $ 9,930 | 9,721 | ||||||
Liabilities associated to assets classified as held for sale | ||||||||
DisclosureOfExposureToTheExchangeRateRiskForFinancialAssetsAndLiabilitiesLineItems [Line Items] | ||||||||
Amount of foreign currency | $ 68.9 | |||||||
Exchange rate | $ / $ | [1] | 18.649 | 18.649 | 18.649 | 18.649 | 18.649 | 18.649 | |
Exposure to the exchange rate risk for financial assets | $ 1,285 | 0 | ||||||
Total liabilities | ||||||||
DisclosureOfExposureToTheExchangeRateRiskForFinancialAssetsAndLiabilitiesLineItems [Line Items] | ||||||||
Exposure to the exchange rate risk for financial assets | $ 45,419 | 24,218 | ||||||
Third parties | Non current trade and other payables | ||||||||
DisclosureOfExposureToTheExchangeRateRiskForFinancialAssetsAndLiabilitiesLineItems [Line Items] | ||||||||
Amount of foreign currency | $ 6.7 | |||||||
Exchange rate | $ / $ | [1] | 18.649 | 18.649 | 18.649 | 18.649 | 18.649 | 18.649 | |
Exposure to the exchange rate risk for financial assets | $ 125 | 0 | ||||||
Third parties | Non current borrowings | ||||||||
DisclosureOfExposureToTheExchangeRateRiskForFinancialAssetsAndLiabilitiesLineItems [Line Items] | ||||||||
Amount of foreign currency | $ 1,737.5 | |||||||
Exchange rate | $ / $ | [1] | 18.649 | 18.649 | 18.649 | 18.649 | 18.649 | 18.649 | |
Exposure to the exchange rate risk for financial assets | $ 32,403 | 11,737 | ||||||
Third parties | Non current provisions | ||||||||
DisclosureOfExposureToTheExchangeRateRiskForFinancialAssetsAndLiabilitiesLineItems [Line Items] | ||||||||
Amount of foreign currency | $ 89.1 | |||||||
Exchange rate | $ / $ | [1] | 18.649 | 18.649 | 18.649 | 18.649 | 18.649 | 18.649 | |
Exposure to the exchange rate risk for financial assets | $ 1,662 | 2,378 | ||||||
Third parties | Current trade and other payables | ||||||||
DisclosureOfExposureToTheExchangeRateRiskForFinancialAssetsAndLiabilitiesLineItems [Line Items] | ||||||||
Amount of foreign currency | $ 249.4 | |||||||
Exchange rate | $ / $ | [1] | 18.649 | 18.649 | 18.649 | 18.649 | 18.649 | 18.649 | |
Exposure to the exchange rate risk for financial assets | $ 4,651 | 3,447 | ||||||
Third parties | Current borrowings | ||||||||
DisclosureOfExposureToTheExchangeRateRiskForFinancialAssetsAndLiabilitiesLineItems [Line Items] | ||||||||
Amount of foreign currency | $ 213.4 | |||||||
Exchange rate | $ / $ | [1] | 18.649 | 18.649 | 18.649 | 18.649 | 18.649 | 18.649 | |
Exposure to the exchange rate risk for financial assets | $ 3,979 | 5,398 | ||||||
Third parties | Current salaries and social security payable | ||||||||
DisclosureOfExposureToTheExchangeRateRiskForFinancialAssetsAndLiabilitiesLineItems [Line Items] | ||||||||
Amount of foreign currency | $ 0.1 | |||||||
Exchange rate | $ / $ | [1] | 18.649 | 18.649 | 18.649 | 18.649 | 18.649 | 18.649 | |
Exposure to the exchange rate risk for financial assets | $ 3 | 1 | ||||||
Third parties | Current taxes payable | ||||||||
DisclosureOfExposureToTheExchangeRateRiskForFinancialAssetsAndLiabilitiesLineItems [Line Items] | ||||||||
Amount of foreign currency | $ 1 | |||||||
Exchange rate | $ / $ | [1] | 18.649 | 18.649 | 18.649 | 18.649 | 18.649 | 18.649 | |
Exposure to the exchange rate risk for financial assets | $ 19 | 11 | ||||||
Third parties | Current provisions | ||||||||
DisclosureOfExposureToTheExchangeRateRiskForFinancialAssetsAndLiabilitiesLineItems [Line Items] | ||||||||
Amount of foreign currency | $ 15 | |||||||
Exchange rate | $ / $ | [1] | 18.649 | 18.649 | 18.649 | 18.649 | 18.649 | 18.649 | |
Exposure to the exchange rate risk for financial assets | $ 280 | 307 | ||||||
Related parties | Non current borrowings | ||||||||
DisclosureOfExposureToTheExchangeRateRiskForFinancialAssetsAndLiabilitiesLineItems [Line Items] | ||||||||
Amount of foreign currency | $ 0.8 | |||||||
Exchange rate | $ / $ | [1] | 18.599 | 18.599 | 18.599 | 18.599 | 18.599 | 18.599 | |
Exposure to the exchange rate risk for financial assets | $ 14 | 16 | ||||||
Related parties | Non current provisions | ||||||||
DisclosureOfExposureToTheExchangeRateRiskForFinancialAssetsAndLiabilitiesLineItems [Line Items] | ||||||||
Amount of foreign currency | $ 0 | |||||||
Exposure to the exchange rate risk for financial assets | $ 0 | 366 | ||||||
Related parties | Current trade and other payables | ||||||||
DisclosureOfExposureToTheExchangeRateRiskForFinancialAssetsAndLiabilitiesLineItems [Line Items] | ||||||||
Amount of foreign currency | $ 2.2 | |||||||
Exchange rate | $ / $ | [1] | 18.599 | 18.599 | 18.599 | 18.599 | 18.599 | 18.599 | |
Exposure to the exchange rate risk for financial assets | $ 40 | 95 | ||||||
Related parties | Current provisions | ||||||||
DisclosureOfExposureToTheExchangeRateRiskForFinancialAssetsAndLiabilitiesLineItems [Line Items] | ||||||||
Amount of foreign currency | $ 21.3 | |||||||
Exchange rate | $ / $ | [1] | 18.599 | 18.599 | 18.599 | 18.599 | 18.599 | 18.599 | |
Exposure to the exchange rate risk for financial assets | $ 396 | 394 | ||||||
Third parties | Current trade and other payables | ||||||||
DisclosureOfExposureToTheExchangeRateRiskForFinancialAssetsAndLiabilitiesLineItems [Line Items] | ||||||||
Amount of foreign currency | € | € 22.4 | |||||||
Exchange rate | $ / € | [1] | 22.45 | 22.45 | 22.45 | 22.45 | 22.45 | 22.45 | |
Exposure to the exchange rate risk for financial assets | $ 502 | 57 | ||||||
Third parties | Current trade and other payables | ||||||||
DisclosureOfExposureToTheExchangeRateRiskForFinancialAssetsAndLiabilitiesLineItems [Line Items] | ||||||||
Amount of foreign currency | SFr | SFr 0.6 | |||||||
Exchange rate | $ / SFr | [1] | 19.168 | 19.168 | 19.168 | 19.168 | 19.168 | 19.168 | |
Exposure to the exchange rate risk for financial assets | $ 12 | 0 | ||||||
Third parties | Current trade and other payables | ||||||||
DisclosureOfExposureToTheExchangeRateRiskForFinancialAssetsAndLiabilitiesLineItems [Line Items] | ||||||||
Amount of foreign currency | kr | kr 21 | |||||||
Exchange rate | $ / kr | [1] | 2.28 | 2.28 | 2.28 | 2.28 | 2.28 | 2.28 | |
Exposure to the exchange rate risk for financial assets | $ 48 | 6 | ||||||
Third parties | Current trade and other payables | ||||||||
DisclosureOfExposureToTheExchangeRateRiskForFinancialAssetsAndLiabilitiesLineItems [Line Items] | ||||||||
Amount of foreign currency | | 0 | |||||||
Exposure to the exchange rate risk for financial assets | 0 | 5 | ||||||
Non current financial assets at amortized cost | Third parties | ||||||||
DisclosureOfExposureToTheExchangeRateRiskForFinancialAssetsAndLiabilitiesLineItems [Line Items] | ||||||||
Amount of foreign currency | $ 0 | |||||||
Exposure to the exchange rate risk for financial assets | $ 0 | 1 | ||||||
Non current other receivables | Third parties | ||||||||
DisclosureOfExposureToTheExchangeRateRiskForFinancialAssetsAndLiabilitiesLineItems [Line Items] | ||||||||
Amount of foreign currency | $ 62.7 | |||||||
Exchange rate | $ / $ | [1] | 18.549 | 18.549 | 18.549 | 18.549 | 18.549 | 18.549 | |
Exposure to the exchange rate risk for financial assets | $ 1,163 | 934 | ||||||
Non current other receivables | Related parties | ||||||||
DisclosureOfExposureToTheExchangeRateRiskForFinancialAssetsAndLiabilitiesLineItems [Line Items] | ||||||||
Amount of foreign currency | $ 42.4 | |||||||
Exchange rate | $ / $ | [1] | 18.599 | 18.599 | 18.599 | 18.599 | 18.599 | 18.599 | |
Exposure to the exchange rate risk for financial assets | $ 789 | 733 | ||||||
Non current financial assets at fair value through profit and loss | Third parties | ||||||||
DisclosureOfExposureToTheExchangeRateRiskForFinancialAssetsAndLiabilitiesLineItems [Line Items] | ||||||||
Amount of foreign currency | $ 0 | |||||||
Exposure to the exchange rate risk for financial assets | 0 | 513 | ||||||
Total non current assets | ||||||||
DisclosureOfExposureToTheExchangeRateRiskForFinancialAssetsAndLiabilitiesLineItems [Line Items] | ||||||||
Exposure to the exchange rate risk for financial assets | $ 1,952 | 2,181 | ||||||
Current financial assets at fair value through profit and loss | Third parties | ||||||||
DisclosureOfExposureToTheExchangeRateRiskForFinancialAssetsAndLiabilitiesLineItems [Line Items] | ||||||||
Amount of foreign currency | $ 263 | |||||||
Exchange rate | $ / $ | [1] | 18.549 | 18.549 | 18.549 | 18.549 | 18.549 | 18.549 | |
Exposure to the exchange rate risk for financial assets | $ 4,879 | 678 | ||||||
Derivative financial instruments | Third parties | ||||||||
DisclosureOfExposureToTheExchangeRateRiskForFinancialAssetsAndLiabilitiesLineItems [Line Items] | ||||||||
Amount of foreign currency | $ 0.2 | |||||||
Exchange rate | $ / $ | [1] | 18.549 | 18.549 | 18.549 | 18.549 | 18.549 | 18.549 | |
Exposure to the exchange rate risk for financial assets | $ 4 | 0 | ||||||
Current trade and other receivables | Third parties | ||||||||
DisclosureOfExposureToTheExchangeRateRiskForFinancialAssetsAndLiabilitiesLineItems [Line Items] | ||||||||
Amount of foreign currency | $ 246 | |||||||
Exchange rate | $ / $ | [1] | 18.549 | 18.549 | 18.549 | 18.549 | 18.549 | 18.549 | |
Exposure to the exchange rate risk for financial assets | $ 4,563 | 4,464 | ||||||
Current trade and other receivables | Related parties | ||||||||
DisclosureOfExposureToTheExchangeRateRiskForFinancialAssetsAndLiabilitiesLineItems [Line Items] | ||||||||
Amount of foreign currency | $ 10.2 | |||||||
Exchange rate | $ / $ | [1] | 18.599 | 18.599 | 18.599 | 18.599 | 18.599 | 18.599 | |
Exposure to the exchange rate risk for financial assets | $ 189 | 106 | ||||||
Current trade and other receivables | Third parties | ||||||||
DisclosureOfExposureToTheExchangeRateRiskForFinancialAssetsAndLiabilitiesLineItems [Line Items] | ||||||||
Amount of foreign currency | € | € 0 | |||||||
Exposure to the exchange rate risk for financial assets | 0 | 1 | ||||||
Current trade and other receivables | Third parties | ||||||||
DisclosureOfExposureToTheExchangeRateRiskForFinancialAssetsAndLiabilitiesLineItems [Line Items] | ||||||||
Amount of foreign currency | | 0 | |||||||
Exposure to the exchange rate risk for financial assets | $ 0 | 2 | ||||||
Cash and cash equivalents | ||||||||
DisclosureOfExposureToTheExchangeRateRiskForFinancialAssetsAndLiabilitiesLineItems [Line Items] | ||||||||
Amount of foreign currency | $ 21.8 | |||||||
Exchange rate | $ / $ | [1] | 18.549 | 18.549 | 18.549 | 18.549 | 18.549 | 18.549 | |
Exposure to the exchange rate risk for financial assets | $ 404 | 1,087 | ||||||
Cash and cash equivalents | ||||||||
DisclosureOfExposureToTheExchangeRateRiskForFinancialAssetsAndLiabilitiesLineItems [Line Items] | ||||||||
Amount of foreign currency | € | € 0.3 | |||||||
Exchange rate | $ / € | [1] | 22.283 | 22.283 | 22.283 | 22.283 | 22.283 | 22.283 | |
Exposure to the exchange rate risk for financial assets | $ 7 | 2 | ||||||
Total current assets | ||||||||
DisclosureOfExposureToTheExchangeRateRiskForFinancialAssetsAndLiabilitiesLineItems [Line Items] | ||||||||
Exposure to the exchange rate risk for financial assets | $ 10,046 | 6,340 | ||||||
Non current assets classified as held for sale | ||||||||
DisclosureOfExposureToTheExchangeRateRiskForFinancialAssetsAndLiabilitiesLineItems [Line Items] | ||||||||
Amount of foreign currency | $ 39 | |||||||
Exchange rate | $ / $ | [1] | 18.549 | 18.549 | 18.549 | 18.549 | 18.549 | 18.549 | |
Exposure to the exchange rate risk for financial assets | $ 723 | 19 | ||||||
Total assets | ||||||||
DisclosureOfExposureToTheExchangeRateRiskForFinancialAssetsAndLiabilitiesLineItems [Line Items] | ||||||||
Exposure to the exchange rate risk for financial assets | $ 12,721 | $ 8,540 | ||||||
[1] | The exchange rates correspond to December 31, 2017 released by the National Bank of Argentine for U.S. dollars (US$), euros (EUR), Swiss francs (CHF) and Norwegian kroner (SEK). For balances with related parties, the Exchange rate used is the average. |
6. FINANCIAL RISK MANAGEMENT103
6. FINANCIAL RISK MANAGEMENT (Details 1) - ARS ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
DisclosureOfVariationOfTheResultOfTheYearLineItems [Line Items] | ||
Variation of the result for the year | $ 1,476 | $ 493 |
Shares | ||
DisclosureOfVariationOfTheResultOfTheYearLineItems [Line Items] | ||
Variation of the result for the year | 15 | 15 |
Government securities | ||
DisclosureOfVariationOfTheResultOfTheYearLineItems [Line Items] | ||
Variation of the result for the year | 502 | 158 |
Investment funds | ||
DisclosureOfVariationOfTheResultOfTheYearLineItems [Line Items] | ||
Variation of the result for the year | 959 | 319 |
Corporate bonds | ||
DisclosureOfVariationOfTheResultOfTheYearLineItems [Line Items] | ||
Variation of the result for the year | $ 0 | $ 1 |
6. FINANCIAL RISK MANAGEMENT104
6. FINANCIAL RISK MANAGEMENT (Details 2) - ARS ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of detailed information about borrowings [line items] | |||
Total borrowings | $ 42,966 | $ 25,972 | $ 7,993 |
Fixed interest rate | |||
Disclosure of detailed information about borrowings [line items] | |||
Total borrowings | 36,039 | 17,034 | |
Fixed interest rate | Argentinian pesos | |||
Disclosure of detailed information about borrowings [line items] | |||
Total borrowings | 2,270 | 2,729 | |
Fixed interest rate | US Dollar | |||
Disclosure of detailed information about borrowings [line items] | |||
Total borrowings | 33,769 | 14,305 | |
Floating interest rates | |||
Disclosure of detailed information about borrowings [line items] | |||
Total borrowings | 5,711 | 8,287 | |
Floating interest rates | Argentinian pesos | |||
Disclosure of detailed information about borrowings [line items] | |||
Total borrowings | 3,603 | 5,808 | |
Floating interest rates | US Dollar | |||
Disclosure of detailed information about borrowings [line items] | |||
Total borrowings | 2,108 | 2,479 | |
Non interest accrual | |||
Disclosure of detailed information about borrowings [line items] | |||
Total borrowings | 1,216 | 651 | |
Non interest accrual | Argentinian pesos | |||
Disclosure of detailed information about borrowings [line items] | |||
Total borrowings | 697 | 284 | |
Non interest accrual | US Dollar | |||
Disclosure of detailed information about borrowings [line items] | |||
Total borrowings | $ 519 | $ 367 |
6. FINANCIAL RISK MANAGEMENT105
6. FINANCIAL RISK MANAGEMENT (Details 3) - ARS ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Financial Risk Management Details 3 | ||
Current assets | $ 36,912 | $ 23,150 |
Current liabilities | $ 29,958 | $ 30,063 |
Liquidity index | 1.23% | 0.77% |
6. FINANCIAL RISK MANAGEMENT106
6. FINANCIAL RISK MANAGEMENT (Details 4) - ARS ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Trade and other payables | $ 24,456 | $ 18,203 |
Borrowings | 83,974 | 33,023 |
Total | 108,430 | 51,226 |
Less than three months | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Trade and other payables | 12,041 | 8,799 |
Borrowings | 13,936 | 1,088 |
Total | 25,977 | 9,887 |
Three months to one year | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Trade and other payables | 6,004 | 4,068 |
Borrowings | 12,938 | 10,995 |
Total | 18,942 | 15,063 |
One to two years | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Trade and other payables | 221 | 311 |
Borrowings | 4,166 | 2,548 |
Total | 4,387 | 2,859 |
Two to five years | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Trade and other payables | 122 | 118 |
Borrowings | 16,624 | 6,312 |
Total | 16,746 | 6,430 |
More than five years | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Trade and other payables | 0 | 0 |
Borrowings | 30,239 | 12,080 |
Total | 30,239 | 12,080 |
Without established term | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Trade and other payables | 6,068 | 4,907 |
Borrowings | 6,071 | 0 |
Total | $ 12,139 | $ 4,907 |
6. FINANCIAL RISK MANAGEMENT107
6. FINANCIAL RISK MANAGEMENT (Details 5) - ARS ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Financial Risk Management Details 5 | |||
Total borrowings | $ 42,966 | $ 25,972 | $ 7,993 |
Less: cash and cash equivalents, and financial assets at fair value through profit and loss | (15,412) | (5,609) | |
Net debt | 27,554 | 20,363 | |
Total capital attributable to owners | $ 44,464 | $ 31,417 | |
Leverage ratio | 61.97% | 64.82% |
6. FINANCIAL RISK MANAGEMENT108
6. FINANCIAL RISK MANAGEMENT (Details 6) - ARS ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Disclosure of financial assets [line items] | ||||
Financial assets at fair value through profit and loss | $ 15,357 | $ 5,030 | ||
Cash and cash equivalents | 799 | 1,421 | $ 517 | $ 335 |
Total assets | 37,693 | 24,028 | ||
Total liabilities | 63,075 | 40,335 | ||
Level 1 | ||||
Disclosure of financial assets [line items] | ||||
Derivative financial instruments | 0 | 0 | ||
Other receivables | 590 | 29 | ||
Total assets | 15,203 | 4,870 | ||
Derivative financial instruments | 0 | |||
Total liabilities | 0 | |||
Level 2 | ||||
Disclosure of financial assets [line items] | ||||
Derivative financial instruments | 4 | 13 | ||
Other receivables | 0 | 0 | ||
Total assets | 4 | 13 | ||
Derivative financial instruments | 82 | |||
Total liabilities | 82 | |||
Level 3 | ||||
Disclosure of financial assets [line items] | ||||
Derivative financial instruments | 0 | 0 | ||
Other receivables | 0 | 0 | ||
Total assets | 150 | 150 | ||
Derivative financial instruments | 0 | |||
Total liabilities | 0 | |||
Total | ||||
Disclosure of financial assets [line items] | ||||
Derivative financial instruments | 4 | 13 | ||
Other receivables | 590 | 29 | ||
Total assets | 15,357 | 5,033 | ||
Derivative financial instruments | 82 | |||
Total liabilities | 82 | |||
Corporate securities | ||||
Disclosure of financial assets [line items] | ||||
Financial assets at fair value through profit and loss | 12 | |||
Corporate securities | Level 1 | ||||
Disclosure of financial assets [line items] | ||||
Financial assets at fair value through profit and loss | 12 | |||
Corporate securities | Level 2 | ||||
Disclosure of financial assets [line items] | ||||
Financial assets at fair value through profit and loss | 0 | |||
Corporate securities | Level 3 | ||||
Disclosure of financial assets [line items] | ||||
Financial assets at fair value through profit and loss | 0 | |||
Government securities | ||||
Disclosure of financial assets [line items] | ||||
Financial assets at fair value through profit and loss | 5,024 | 1,576 | ||
Government securities | Level 1 | ||||
Disclosure of financial assets [line items] | ||||
Financial assets at fair value through profit and loss | 5,024 | 1,576 | ||
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 | 150 | 150 | ||
Shares | Level 1 | ||||
Disclosure of financial assets [line items] | ||||
Financial assets at fair value through profit and loss | 0 | 0 | ||
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 | 150 | 150 | ||
Investment funds | ||||
Disclosure of financial assets [line items] | ||||
Financial assets at fair value through profit and loss | 9,589 | 3,189 | ||
Cash and cash equivalents | 61 | |||
Investment funds | Level 1 | ||||
Disclosure of financial assets [line items] | ||||
Financial assets at fair value through profit and loss | 9,589 | 3,189 | ||
Cash and cash equivalents | 61 | |||
Investment funds | Level 2 | ||||
Disclosure of financial assets [line items] | ||||
Financial assets at fair value through profit and loss | 0 | 0 | ||
Cash and cash equivalents | 0 | |||
Investment funds | Level 3 | ||||
Disclosure of financial assets [line items] | ||||
Financial assets at fair value through profit and loss | $ 0 | 0 | ||
Cash and cash equivalents | 0 | |||
Other | ||||
Disclosure of financial assets [line items] | ||||
Financial assets at fair value through profit and loss | 3 | |||
Other | Level 1 | ||||
Disclosure of financial assets [line items] | ||||
Financial assets at fair value through profit and loss | 3 | |||
Other | Level 2 | ||||
Disclosure of financial assets [line items] | ||||
Financial assets at fair value through profit and loss | 0 | |||
Other | Level 3 | ||||
Disclosure of financial assets [line items] | ||||
Financial assets at fair value through profit and loss | $ 0 |
6. FINANCIAL RISK MANAGEMENT109
6. FINANCIAL RISK MANAGEMENT (Details Narrative) - ARS ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
DisclosureOfFinancialRiskManagementLineItems [Line Items] | ||
Allowances for doubtful accounts receivable | $ 459 | $ 260 |
Edenor | ||
DisclosureOfFinancialRiskManagementLineItems [Line Items] | ||
Trade receivables | 9,453 | |
Delinquent trade receivables | $ 1,041 | $ 659 |
7. INVESTMENTS IN SUBSIDIARI110
7. INVESTMENTS IN SUBSIDIARIES (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | ||
Subsidiary 1 | |||
Disclosure of subsidiaries [line items] | |||
Subsidiary name | [1] | BLL | |
Country | Argentina | ||
Main activity | Winemaking | ||
Direct and indirect participation | 0.00% | 100.00% | |
Subsidiary 2 | |||
Disclosure of subsidiaries [line items] | |||
Subsidiary name | Corod | ||
Country | Argentina | ||
Main activity | Oil | ||
Direct and indirect participation | 100.00% | 100.00% | |
Subsidiary 3 | |||
Disclosure of subsidiaries [line items] | |||
Subsidiary name | CPB Energía S.A. | ||
Country | Argentina | ||
Main activity | Oil | ||
Direct and indirect participation | 100.00% | 0.00% | |
Subsidiary 4 | |||
Disclosure of subsidiaries [line items] | |||
Subsidiary name | [1] | CTG | |
Country | Argentina | ||
Main activity | Generation | ||
Direct and indirect participation | 0.00% | 90.42% | |
Subsidiary 5 | |||
Disclosure of subsidiaries [line items] | |||
Subsidiary name | [1] | CTLL | |
Country | Argentina | ||
Main activity | Generation | ||
Direct and indirect participation | 0.00% | 100.00% | |
Subsidiary 6 | |||
Disclosure of subsidiaries [line items] | |||
Subsidiary name | Ecuador TLC S.A. | ||
Country | Ecuador | ||
Main activity | Oil | ||
Direct and indirect participation | 100.00% | 100.00% | |
Subsidiary 7 | |||
Disclosure of subsidiaries [line items] | |||
Subsidiary name | Edenor | ||
Country | Argentina | ||
Main activity | Distribution of energy | ||
Direct and indirect participation | 51.54% | 51.54% | |
Subsidiary 8 | |||
Disclosure of subsidiaries [line items] | |||
Subsidiary name | [1] | Eg3 Red | |
Country | Argentina | ||
Main activity | Distribution | ||
Direct and indirect participation | 0.00% | 100.00% | |
Subsidiary 9 | |||
Disclosure of subsidiaries [line items] | |||
Subsidiary name | Enecor S.A. | ||
Country | Argentina | ||
Main activity | Transportation of electricity | ||
Direct and indirect participation | 69.99% | 69.99% | |
Subsidiary 10 | |||
Disclosure of subsidiaries [line items] | |||
Subsidiary name | [2] | IEASA | |
Country | Argentina | ||
Main activity | Investment | ||
Direct and indirect participation | 0.00% | 100.00% | |
Subsidiary 11 | |||
Disclosure of subsidiaries [line items] | |||
Subsidiary name | [1] | INDISA | |
Country | Argentina | ||
Main activity | Investment | ||
Direct and indirect participation | 0.00% | 91.60% | |
Subsidiary 12 | |||
Disclosure of subsidiaries [line items] | |||
Subsidiary name | [1] | INNISA | |
Country | Argentina | ||
Main activity | Investment | ||
Direct and indirect participation | 0.00% | 90.27% | |
Subsidiary 13 | |||
Disclosure of subsidiaries [line items] | |||
Subsidiary name | HIDISA | ||
Country | Argentina | ||
Main activity | Generation | ||
Direct and indirect participation | 61.00% | 61.00% | |
Subsidiary 14 | |||
Disclosure of subsidiaries [line items] | |||
Subsidiary name | HINISA | ||
Country | Argentina | ||
Main activity | Generation | ||
Direct and indirect participation | 52.04% | 52.04% | |
Subsidiary 15 | |||
Disclosure of subsidiaries [line items] | |||
Subsidiary name | [1] | IPB | |
Country | Argentina | ||
Main activity | Investment | ||
Direct and indirect participation | 0.00% | 100.00% | |
Subsidiary 16 | |||
Disclosure of subsidiaries [line items] | |||
Subsidiary name | [3] | PACOSA | |
Country | Argentina | ||
Main activity | Distributor | ||
Direct and indirect participation | 100.00% | 100.00% | |
Subsidiary 17 | |||
Disclosure of subsidiaries [line items] | |||
Subsidiary name | PBI | ||
Country | Bolivia | ||
Main activity | Investment | ||
Direct and indirect participation | 100.00% | 100.00% | |
Subsidiary 18 | |||
Disclosure of subsidiaries [line items] | |||
Subsidiary name | [4] | PELSA | |
Country | Argentina | ||
Main activity | Oil | ||
Direct and indirect participation | 58.88% | 58.88% | |
Subsidiary 19 | |||
Disclosure of subsidiaries [line items] | |||
Subsidiary name | Petrobras Energía Colombia Gran Cayman | ||
Country | Colombia | ||
Main activity | Oil | ||
Direct and indirect participation | 100.00% | 100.00% | |
Subsidiary 20 | |||
Disclosure of subsidiaries [line items] | |||
Subsidiary name | Petrobras Energía México | ||
Country | Mexico | ||
Main activity | Oil | ||
Direct and indirect participation | 0.00% | 100.00% | |
Subsidiary 21 | |||
Disclosure of subsidiaries [line items] | |||
Subsidiary name | Petrobras Energía Ecuador | ||
Country | Gran Cayman | ||
Main activity | Investment | ||
Direct and indirect participation | 100.00% | 100.00% | |
Subsidiary 22 | |||
Disclosure of subsidiaries [line items] | |||
Subsidiary name | Petrobras Energía Operaciones Ecuador | ||
Country | Ecuador | ||
Main activity | Oil | ||
Direct and indirect participation | 100.00% | 100.00% | |
Subsidiary 23 | |||
Disclosure of subsidiaries [line items] | |||
Subsidiary name | [1] | PEPASA | |
Country | Argentina | ||
Main activity | Oil | ||
Direct and indirect participation | 0.00% | 49.54% | |
Subsidiary 24 | |||
Disclosure of subsidiaries [line items] | |||
Subsidiary name | Petrolera San Carlos S.A. | ||
Country | Venezuela | ||
Main activity | Oil | ||
Direct and indirect participation | 100.00% | 100.00% | |
Subsidiary 25 | |||
Disclosure of subsidiaries [line items] | |||
Subsidiary name | PHA | ||
Country | Spain | ||
Main activity | Investment | ||
Direct and indirect participation | 100.00% | 100.00% | |
Subsidiary 26 | |||
Disclosure of subsidiaries [line items] | |||
Subsidiary name | PISA | ||
Country | Uruguay | ||
Main activity | Investment | ||
Direct and indirect participation | 100.00% | 100.00% | |
Subsidiary 27 | |||
Disclosure of subsidiaries [line items] | |||
Subsidiary name | PP | ||
Country | Argentina | ||
Main activity | Investment | ||
Direct and indirect participation | 100.00% | 100.00% | |
Subsidiary 28 | |||
Disclosure of subsidiaries [line items] | |||
Subsidiary name | [1] | PP II | |
Country | Argentina | ||
Main activity | Investment | ||
Direct and indirect participation | 0.00% | 100.00% | |
Subsidiary 29 | |||
Disclosure of subsidiaries [line items] | |||
Subsidiary name | PPSL | ||
Country | Spain | ||
Main activity | Investment | ||
Direct and indirect participation | 100.00% | 100.00% | |
Subsidiary 30 | |||
Disclosure of subsidiaries [line items] | |||
Subsidiary name | TGU | ||
Country | Uruguay | ||
Main activity | Gas transportation | ||
Direct and indirect participation | 100.00% | 100.00% | |
Subsidiary 31 | |||
Disclosure of subsidiaries [line items] | |||
Subsidiary name | Transelec | ||
Country | Argentina | ||
Main activity | Investment | ||
Direct and indirect participation | 100.00% | 100.00% | |
Subsidiary 32 | |||
Disclosure of subsidiaries [line items] | |||
Subsidiary name | [3] | WEBSA | |
Country | Argentina | ||
Main activity | Distributor | ||
Direct and indirect participation | 0.00% | 100.00% | |
[1] | See Note 1.4.1. | ||
[2] | See Note 1.4.3.1. | ||
[3] | See Note 1.4.3.2. | ||
[4] | See Note 1.5.2. |
7. INVESTMENTS IN SUBSIDIARI111
7. INVESTMENTS IN SUBSIDIARIES (Details 1) - ARS ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Non Current | ||||
Total non current assets | $ 55,054 | $ 54,108 | ||
Borrowings | 37,126 | 15,286 | ||
Total non current liabities | 52,027 | 33,140 | ||
Current | ||||
Cash and cash equivalents | 799 | 1,421 | $ 517 | $ 335 |
Other current assets | 0 | 1 | ||
Total current assets | 36,912 | 23,150 | ||
Borrowings | 5,840 | 10,686 | ||
Total current liabilities | 29,958 | 30,063 | ||
Equity | 20,112 | 14,074 | $ 8,381 | $ 3,553 |
Non-controlling interest | 3,202 | 3,020 | ||
Edenor | ||||
Non Current | ||||
Total non current assets | 16,042 | 12,311 | ||
Borrowings | 4,192 | 2,770 | ||
Other non current liabilities | 7,511 | 6,238 | ||
Total non current liabities | 11,703 | 9,008 | ||
Current | ||||
Cash and cash equivalents | 83 | 259 | ||
Other current assets | 9,180 | 6,363 | ||
Total current assets | 9,263 | 6,622 | ||
Borrowings | 71 | 54 | ||
Other current liabilities | 12,470 | 9,509 | ||
Total current liabilities | 12,541 | 9,563 | ||
Equity | 1,061 | 362 | ||
Non-controlling interest | 514 | 175 | ||
PELSA | ||||
Non Current | ||||
Total non current assets | 5,081 | 4,896 | ||
Other non current liabilities | 954 | 1,012 | ||
Total non current liabities | 954 | 1,012 | ||
Current | ||||
Cash and cash equivalents | 162 | 77 | ||
Other current assets | 1,727 | 1,154 | ||
Total current assets | 1,889 | 1,231 | ||
Other current liabilities | 599 | 630 | ||
Total current liabilities | 599 | 630 | ||
Equity | 5,417 | 4,485 | ||
Non-controlling interest | $ 2,227 | $ 1,844 |
7. INVESTMENTS IN SUBSIDIARI112
7. INVESTMENTS IN SUBSIDIARIES (Details 2) - ARS ($) $ in Millions | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2017 | [2] | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Disclosure of subsidiaries [line items] | ||||||
Revenue | $ 50,347 | $ 25,110 | $ 7,106 | |||
Interest income | 1,432 | 849 | 331 | |||
Interest expense | 5,112 | 4,277 | 1,257 | |||
Profit (loss) for the year before tax | 4,209 | (1,525) | 4,436 | |||
Income tax | (1,367) | (1,201) | 587 | |||
Profit (loss) of the year | 5,670 | (252) | 3,849 | |||
Other comprehensive income (loss) | 505 | 197 | 0 | |||
Total comprehensive income (loss) of the year | 6,175 | (55) | 3,849 | |||
Income (loss) of the year attributable to non-controlling interest | 1,064 | (241) | 784 | |||
Comprehensive income (loss) of the year attributable to non-controlling interest | 1,387 | (145) | 783 | |||
Edenor | ||||||
Disclosure of subsidiaries [line items] | ||||||
Revenue | 24,340 | 13,080 | 3,802 | |||
Depreciation | (430) | (352) | (281) | |||
Interest income | 273 | 197 | 96 | |||
Interest expense | (1,541) | (1,442) | (430) | |||
Profit (loss) for the year before tax | 1,123 | (1,932) | 1,326 | |||
Income tax | (441) | 743 | (184) | |||
Profit (loss) of the year | 682 | (1,189) | 1,142 | |||
Other comprehensive income (loss) | 9 | 5 | (2) | |||
Total comprehensive income (loss) of the year | 691 | (1,184) | 1,140 | |||
Income (loss) of the year attributable to non-controlling interest | 331 | (576) | 553 | |||
Other comprehensive income of the year attributable to non-controlling interest | 4 | 2 | (1) | |||
Comprehensive income (loss) of the year attributable to non-controlling interest | 335 | (574) | 552 | |||
PELSA | ||||||
Disclosure of subsidiaries [line items] | ||||||
Revenue | 3,311 | 1,155 | [1] | |||
Depreciation | (1,017) | (413) | [1] | |||
Interest income | 22 | 13 | [1] | |||
Profit (loss) for the year before tax | 278 | (3) | [1] | |||
Income tax | (8) | (41) | [1] | |||
Profit (loss) of the year | 270 | (44) | [1] | |||
Other comprehensive income (loss) | 769 | 228 | [1] | |||
Total comprehensive income (loss) of the year | 1,039 | 184 | [1] | |||
Income (loss) of the year attributable to non-controlling interest | 111 | (18) | [1] | |||
Other comprehensive income of the year attributable to non-controlling interest | 316 | 94 | [1] | |||
Comprehensive income (loss) of the year attributable to non-controlling interest | $ 427 | 76 | [1] | |||
PEPASA | ||||||
Disclosure of subsidiaries [line items] | ||||||
Revenue | $ 2,894 | 2,839 | 943 | |||
Depreciation | (661) | (867) | (276) | |||
Interest income | 22 | 1 | 12 | |||
Interest expense | (188) | (712) | (382) | |||
Profit (loss) for the year before tax | 127 | 816 | 515 | |||
Income tax | (411) | (288) | (164) | |||
Total comprehensive income (loss) of the year | 866 | 528 | 351 | |||
Comprehensive income (loss) of the year attributable to non-controlling interest | $ 437 | $ 266 | $ 177 | |||
[1] | The information reflects the effect of consolidation of Petrobras Argentina as from July 27, 2016 when the Acquisition was consummated. | |||||
[2] | The information reflects the effect of consolidation until September 30, 2017 when the PEPASA has merged with Pampa. |
7. INVESTMENTS IN SUBSIDIARI113
7. INVESTMENTS IN SUBSIDIARIES (Details 3) - ARS ($) $ in Millions | 9 Months Ended | 12 Months Ended | |||||||
Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||||||
Disclosure of subsidiaries [line items] | |||||||||
Net cash generated by operating activities | $ 10,716 | $ 5,945 | $ 4,366 | ||||||
Net cash (used in) generated by investing activities | (19,285) | (11,231) | (7,115) | ||||||
Net cash generated by (used in) financing activities | 8,085 | 5,830 | 2,852 | ||||||
(Decrease) Increase in cash and cash equivalents | (484) | 544 | 103 | ||||||
Cash and cash equivalents at the beginning of the year | $ 1,421 | 1,421 | 517 | 335 | |||||
Exchange difference generated by cash and cash equivalents | 23 | 360 | 79 | ||||||
Cash and cash equivalents at the end of the year | 799 | 1,421 | 517 | ||||||
Edenor | |||||||||
Disclosure of subsidiaries [line items] | |||||||||
Net cash generated by operating activities | 3,283 | 2,931 | 3,217 | ||||||
Net cash (used in) generated by investing activities | (4,046) | (2,373) | (3,103) | ||||||
Net cash generated by (used in) financing activities | 587 | (493) | (173) | ||||||
(Decrease) Increase in cash and cash equivalents | (176) | 65 | (59) | ||||||
Cash and cash equivalents at the beginning of the year | 259 | 259 | 129 | 179 | |||||
Exchange difference generated by cash and cash equivalents | 0 | 65 | 9 | ||||||
Cash and cash equivalents at the end of the year | 83 | 259 | 129 | ||||||
PELSA | |||||||||
Disclosure of subsidiaries [line items] | |||||||||
Net cash generated by operating activities | 543 | 332 | [1] | ||||||
Net cash (used in) generated by investing activities | (362) | (234) | [1] | ||||||
Net cash generated by (used in) financing activities | (108) | (108) | [1] | ||||||
(Decrease) Increase in cash and cash equivalents | 73 | (10) | [1] | ||||||
Cash and cash equivalents at the beginning of the year | [1] | 77 | 77 | 121 | |||||
Exchange difference generated by cash and cash equivalents | 12 | (34) | [1] | ||||||
Cash and cash equivalents at the end of the year | 162 | 77 | [1] | 121 | [1] | ||||
PEPASA | |||||||||
Disclosure of subsidiaries [line items] | |||||||||
Net cash generated by operating activities | 565 | [2] | 1,659 | 461 | |||||
Net cash (used in) generated by investing activities | 1,209 | [2] | (2,476) | (1,187) | |||||
Net cash generated by (used in) financing activities | (1,961) | [2] | 994 | 706 | |||||
(Decrease) Increase in cash and cash equivalents | (187) | [2] | 177 | (20) | |||||
Cash and cash equivalents at the beginning of the year | 226 | [2] | $ 226 | [2] | 40 | 51 | |||
Exchange difference generated by cash and cash equivalents | 4 | [2] | 9 | 9 | |||||
Cash and cash equivalents at the end of the year | $ 43 | [2] | $ 226 | [2] | $ 40 | ||||
[1] | The information reflects the effect of consolidation of Petrobras Argentina as from July 27, 2016 when the Acquisition was consummated. | ||||||||
[2] | The information reflects the effect of consolidation until September 30, 2017 when the PEPASA has merged with Pampa. |
8. INVESTMENTS IN JOINT VENT114
8. INVESTMENTS IN JOINT VENTURES (Details) - ARS ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Disclosure of joint ventures [line items] | |||||
Share capital | $ 2,080 | $ 1,938 | |||
Profit (loss) of the year | 5,670 | (252) | $ 3,849 | ||
Equity | $ 20,112 | 14,074 | $ 8,381 | $ 3,553 | |
Joint Venture 1 | |||||
Disclosure of joint ventures [line items] | |||||
Joint venture name | [1] | CIESA | |||
Main activity | Investment | ||||
Share capital | 639 | ||||
Profit (loss) of the year | 1,356 | ||||
Equity | $ 2,900 | ||||
Direct and indirect participation | 50.00% | ||||
Joint Venture 2 | |||||
Disclosure of joint ventures [line items] | |||||
Joint venture name | [2] | Citelec | |||
Main activity | Investment | ||||
Share capital | $ 555 | ||||
Profit (loss) of the year | 1,201 | ||||
Equity | $ 1,505 | ||||
Direct and indirect participation | 50.00% | ||||
Joint Venture 3 | |||||
Disclosure of joint ventures [line items] | |||||
Joint venture name | [3] | Greenwind | |||
Main activity | Generation | ||||
Share capital | $ 5 | ||||
Profit (loss) of the year | (104) | ||||
Equity | $ 222 | ||||
Direct and indirect participation | 50.00% | ||||
[1] | 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. | ||||
[2] | 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. | ||||
[3] | See Note 1.3.2. |
8. INVESTMENTS IN JOINT VENT115
8. INVESTMENTS IN JOINT VENTURES (Details 1) - ARS ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Disclosure of joint ventures [line items] | ||||
Interests in joint ventures | $ 4,930 | $ 3,699 | $ 224 | $ 227 |
CIESA | ||||
Disclosure of joint ventures [line items] | ||||
Interests in joint ventures | 4,048 | 3,532 | ||
Citelec | ||||
Disclosure of joint ventures [line items] | ||||
Interests in joint ventures | 757 | 167 | ||
Greenwind | ||||
Disclosure of joint ventures [line items] | ||||
Interests in joint ventures | $ 125 | $ 0 |
8. INVESTMENTS IN JOINT VENT116
8. INVESTMENTS IN JOINT VENTURES (Details 2) - ARS ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of joint ventures [line items] | |||
Share of profit (loss) of joint ventures | $ 1,064 | $ 105 | $ 9 |
CIESA | |||
Disclosure of joint ventures [line items] | |||
Share of profit (loss) of joint ventures | 518 | 125 | 0 |
Citelec | |||
Disclosure of joint ventures [line items] | |||
Share of profit (loss) of joint ventures | 596 | (20) | 9 |
Greenwind | |||
Disclosure of joint ventures [line items] | |||
Share of profit (loss) of joint ventures | $ (50) | $ 0 | $ 0 |
8. INVESTMENTS IN JOINT VENT117
8. INVESTMENTS IN JOINT VENTURES (Details 3) - ARS ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||
Investments In Joint Ventures Details 3 | |||||
Interests in joint ventures, beginning | $ 3,699 | $ 224 | $ 227 | ||
Reclassifications | 175 | [1] | 0 | 0 | |
Increase for subsidiaries acquisition | 0 | 3,407 | [2] | 0 | |
Other decreases | (2) | (32) | (14) | ||
Share of profit | 1,064 | 105 | 9 | ||
Share capital increase | 0 | 0 | 1 | ||
Other comprehensive (loss) income | (6) | (5) | 1 | ||
Interests in joint ventures, ending | $ 4,930 | $ 3,699 | $ 224 | ||
[1] | Corresponds to the deconsolidation for sale of the interest in Greenwind (Note 1.3.2). | ||||
[2] | Corresponds to the incorporation of the interest in CIESA (Note 1.3.1). |
9. INVESTMENTS IN ASSOCIATES (D
9. INVESTMENTS IN ASSOCIATES (Details) - ARS ($) $ in Millions | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Disclosure of associates [line items] | |||||
Share capital | $ 2,080 | $ 1,938 | |||
Profit (loss) of the period/year | 5,670 | (252) | $ 3,849 | ||
Equity | $ 20,112 | $ 14,074 | $ 8,381 | $ 3,553 | |
Associate 1 | |||||
Disclosure of associates [line items] | |||||
Associate name | Refinor | ||||
Main activity | Refinery | ||||
Share capital | $ 92 | ||||
Profit (loss) of the period/year | (10) | ||||
Equity | $ 980 | ||||
Direct and indirect participation | 28.50% | ||||
Associate 2 | |||||
Disclosure of associates [line items] | |||||
Associate name | Oldelval | ||||
Main activity | Transport of hydrocarbons | ||||
Share capital | $ 110 | ||||
Profit (loss) of the period/year | 216 | ||||
Equity | $ 657 | ||||
Direct and indirect participation | 23.10% |
9. INVESTMENTS IN ASSOCIATES119
9. INVESTMENTS IN ASSOCIATES (Details 1) - ARS ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Disclosure of associates [line items] | ||||
Investments in associates | $ 824 | $ 787 | $ 123 | $ 133 |
Refinor | ||||
Disclosure of associates [line items] | ||||
Investments in associates | 602 | 602 | ||
Oldelval | ||||
Disclosure of associates [line items] | ||||
Investments in associates | 221 | 184 | ||
Others | ||||
Disclosure of associates [line items] | ||||
Investments in associates | $ 1 | $ 1 |
9. INVESTMENTS IN ASSOCIATES120
9. INVESTMENTS IN ASSOCIATES (Details 2) - ARS ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of associates [line items] | |||
Share of profit (loss) from associates | $ 44 | $ 7 | $ (10) |
Oldelval | |||
Disclosure of associates [line items] | |||
Share of profit (loss) from associates | 44 | 11 | 0 |
Refinor | |||
Disclosure of associates [line items] | |||
Share of profit (loss) from associates | 0 | (1) | 0 |
CIESA | |||
Disclosure of associates [line items] | |||
Share of profit (loss) from associates | $ 0 | $ (3) | $ (10) |
9. INVESTMENTS IN ASSOCIATES121
9. INVESTMENTS IN ASSOCIATES (Details 3) - ARS ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Investments In Associates Details 3 | |||
Investments in associates, beginning | $ 787 | $ 123 | $ 133 |
Dividends | (7) | (4) | 0 |
Increase for subsidiaries acquisition | 0 | 777 | 0 |
Decreases on disposal of investment in subsidiary | 0 | (116) | 0 |
Share of profit (loss) | 44 | 7 | (10) |
Investments in associates, ending | $ 824 | $ 787 | $ 123 |
10. PROPERTY, PLANT AND EQUI122
10. PROPERTY, PLANT AND EQUIPMENT (Details) - ARS ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | ||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning | $ 46,427 | $ 17,334 | |
Translation effect | 1,006 | 286 | |
Increase for subsidiaries acquisition | 0 | 21,801 | |
Reversal of impairment | 623 | 0 | |
Increases | 14,989 | 8,440 | |
Decreases | (1,443) | (1,273) | |
Transfers | [1] | (83) | 1 |
Reclassification to assets classified as held | (12,017) | 0 | |
Property, plant and equipment, ending | 49,502 | $ 46,427 | |
Land | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning | 1,193 | ||
Translation effect | 0 | ||
Increase for subsidiaries acquisition | 0 | ||
Reversal of impairment | 0 | ||
Increases | 54 | ||
Decreases | (582) | ||
Transfers | [1] | 12 | |
Reclassification to assets classified as held | (323) | ||
Property, plant and equipment, ending | 354 | ||
Buildings | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning | 2,090 | ||
Translation effect | 1 | ||
Increase for subsidiaries acquisition | 0 | ||
Reversal of impairment | 0 | ||
Increases | 0 | ||
Decreases | (18) | ||
Transfers | [1] | 239 | |
Reclassification to assets classified as held | (238) | ||
Property, plant and equipment, ending | 2,074 | ||
Equipment and machinery | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning | 9,000 | ||
Translation effect | 17 | ||
Increase for subsidiaries acquisition | 0 | ||
Reversal of impairment | 0 | ||
Increases | 41 | ||
Decreases | (27) | ||
Transfers | [1] | 4,046 | |
Reclassification to assets classified as held | (913) | ||
Property, plant and equipment, ending | 12,164 | ||
High, medium and low voltage lines | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning | 4,586 | ||
Translation effect | 0 | ||
Increase for subsidiaries acquisition | 0 | ||
Reversal of impairment | 304 | ||
Increases | 0 | ||
Decreases | (20) | ||
Transfers | [1] | 1,076 | |
Reclassification to assets classified as held | 0 | ||
Property, plant and equipment, ending | 5,946 | ||
Substations | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning | 1,729 | ||
Translation effect | 0 | ||
Increase for subsidiaries acquisition | 0 | ||
Reversal of impairment | 85 | ||
Increases | 0 | ||
Decreases | 0 | ||
Transfers | [1] | 464 | |
Reclassification to assets classified as held | 0 | ||
Property, plant and equipment, ending | 2,278 | ||
Transforming chamber and platforms | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning | 1,040 | ||
Translation effect | 0 | ||
Increase for subsidiaries acquisition | 0 | ||
Reversal of impairment | 64 | ||
Increases | 0 | ||
Decreases | (2) | ||
Transfers | [1] | 281 | |
Reclassification to assets classified as held | 0 | ||
Property, plant and equipment, ending | 1,383 | ||
Meters | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning | 943 | ||
Translation effect | 0 | ||
Increase for subsidiaries acquisition | 0 | ||
Reversal of impairment | 170 | ||
Increases | 0 | ||
Decreases | 0 | ||
Transfers | [1] | 64 | |
Reclassification to assets classified as held | 0 | ||
Property, plant and equipment, ending | 1,177 | ||
Wells | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning | 10,522 | ||
Translation effect | 872 | ||
Increase for subsidiaries acquisition | 0 | ||
Reversal of impairment | 0 | ||
Increases | 295 | ||
Decreases | (425) | ||
Transfers | [1] | 3,017 | |
Reclassification to assets classified as held | (7,718) | ||
Property, plant and equipment, ending | 6,563 | ||
Mining property | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning | 5,033 | ||
Translation effect | 81 | ||
Increase for subsidiaries acquisition | 0 | ||
Reversal of impairment | 0 | ||
Increases | 220 | ||
Decreases | 0 | ||
Transfers | [1] | 0 | |
Reclassification to assets classified as held | (1,566) | ||
Property, plant and equipment, ending | 3,768 | ||
Vehicles | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning | 296 | ||
Translation effect | 2 | ||
Increase for subsidiaries acquisition | 0 | ||
Reversal of impairment | 0 | ||
Increases | 74 | ||
Decreases | (6) | ||
Transfers | [1] | 2 | |
Reclassification to assets classified as held | (21) | ||
Property, plant and equipment, ending | 347 | ||
Furniture and fixtures and software equipment | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning | 287 | ||
Translation effect | 7 | ||
Increase for subsidiaries acquisition | 0 | ||
Reversal of impairment | 0 | ||
Increases | 229 | ||
Decreases | (4) | ||
Transfers | [1] | 65 | |
Reclassification to assets classified as held | (67) | ||
Property, plant and equipment, ending | 517 | ||
Communication equipments | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning | 93 | ||
Translation effect | 0 | ||
Increase for subsidiaries acquisition | 0 | ||
Reversal of impairment | 0 | ||
Increases | 0 | ||
Decreases | 0 | ||
Transfers | [1] | 1 | |
Reclassification to assets classified as held | (1) | ||
Property, plant and equipment, ending | 93 | ||
Materials and spare parts | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning | 628 | ||
Translation effect | 3 | ||
Increase for subsidiaries acquisition | 0 | ||
Reversal of impairment | 0 | ||
Increases | 298 | ||
Decreases | (83) | ||
Transfers | [1] | (330) | |
Reclassification to assets classified as held | (60) | ||
Property, plant and equipment, ending | 456 | ||
Refining and distribution industrial complex | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning | 873 | ||
Translation effect | 0 | ||
Increase for subsidiaries acquisition | 0 | ||
Reversal of impairment | 0 | ||
Increases | 0 | ||
Decreases | (12) | ||
Transfers | [1] | 77 | |
Reclassification to assets classified as held | (790) | ||
Property, plant and equipment, ending | 148 | ||
Petrochemical Industrial Complex | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning | 756 | ||
Translation effect | 0 | ||
Increase for subsidiaries acquisition | 0 | ||
Reversal of impairment | 0 | ||
Increases | 0 | ||
Decreases | 0 | ||
Transfers | [1] | 169 | |
Reclassification to assets classified as held | 0 | ||
Property, plant and equipment, ending | 925 | ||
Work in progress | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning | 6,560 | ||
Translation effect | 23 | ||
Increase for subsidiaries acquisition | 0 | ||
Reversal of impairment | 0 | ||
Increases | 12,647 | ||
Decreases | 10 | ||
Transfers | [1] | (8,355) | |
Reclassification to assets classified as held | (320) | ||
Property, plant and equipment, ending | 10,565 | ||
Advances to suppliers | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning | 786 | ||
Translation effect | 0 | ||
Increase for subsidiaries acquisition | 0 | ||
Reversal of impairment | 0 | ||
Increases | 1,131 | ||
Decreases | (274) | ||
Transfers | [1] | (911) | |
Reclassification to assets classified as held | 0 | ||
Property, plant and equipment, ending | 732 | ||
Other goods | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning | 12 | ||
Translation effect | 0 | ||
Increase for subsidiaries acquisition | 0 | ||
Reversal of impairment | 0 | ||
Increases | 0 | ||
Decreases | 0 | ||
Transfers | [1] | 0 | |
Reclassification to assets classified as held | 0 | ||
Property, plant and equipment, ending | $ 12 | ||
[1] | Includes the transfer of materials and spare parts to the item "Inventories" of the current asset. |
10. PROPERTY, PLANT AND EQUI123
10. PROPERTY, PLANT AND EQUIPMENT (Details 1) - ARS ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | ||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment depreciation, beginning | $ (5,426) | $ (2,825) | |
Decreases | 108 | 302 | |
Translation effect | (204) | 0 | |
Depreciation for the year | [1] | (5,328) | (2,976) |
Reversal of impairment | (162) | 0 | |
Reclassification to assets classified as held for sale | 2,724 | 0 | |
Property, plant and equipment depreciation, ending | (8,288) | (5,426) | |
Net book value | 41,214 | 41,001 | |
Land | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment depreciation, beginning | 0 | ||
Decreases | 0 | ||
Translation effect | 0 | ||
Depreciation for the year | 0 | ||
Reversal of impairment | 0 | ||
Reclassification to assets classified as held for sale | 0 | ||
Property, plant and equipment depreciation, ending | 0 | 0 | |
Net book value | 354 | 1,193 | |
Buildings | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment depreciation, beginning | (177) | ||
Decreases | 15 | ||
Translation effect | 0 | ||
Depreciation for the year | (109) | ||
Reversal of impairment | 0 | ||
Reclassification to assets classified as held for sale | 22 | ||
Property, plant and equipment depreciation, ending | (249) | (177) | |
Net book value | 1,825 | 1,913 | |
Equipment and machinery | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment depreciation, beginning | (1,090) | ||
Decreases | 16 | ||
Translation effect | (2) | ||
Depreciation for the year | (1,238) | ||
Reversal of impairment | 0 | ||
Reclassification to assets classified as held for sale | 211 | ||
Property, plant and equipment depreciation, ending | (2,103) | (1,090) | |
Net book value | 10,061 | 7,910 | |
High, medium and low voltage lines | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment depreciation, beginning | (778) | ||
Decreases | 13 | ||
Translation effect | 0 | ||
Depreciation for the year | (163) | ||
Reversal of impairment | (91) | ||
Reclassification to assets classified as held for sale | 0 | ||
Property, plant and equipment depreciation, ending | (1,019) | (778) | |
Net book value | 4,927 | 3,808 | |
Substations | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment depreciation, beginning | (318) | ||
Decreases | 0 | ||
Translation effect | 0 | ||
Depreciation for the year | (58) | ||
Reversal of impairment | (27) | ||
Reclassification to assets classified as held for sale | 0 | ||
Property, plant and equipment depreciation, ending | (403) | (318) | |
Net book value | 1,875 | 1,411 | |
Transforming chamber and platforms | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment depreciation, beginning | (191) | ||
Decreases | 0 | ||
Translation effect | 0 | ||
Depreciation for the year | (39) | ||
Reversal of impairment | (18) | ||
Reclassification to assets classified as held for sale | 0 | ||
Property, plant and equipment depreciation, ending | (248) | (191) | |
Net book value | 1,135 | 849 | |
Meters | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment depreciation, beginning | (306) | ||
Decreases | 0 | ||
Translation effect | 0 | ||
Depreciation for the year | (47) | ||
Reversal of impairment | (26) | ||
Reclassification to assets classified as held for sale | 0 | ||
Property, plant and equipment depreciation, ending | (379) | (306) | |
Net book value | 798 | 637 | |
Wells | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment depreciation, beginning | (1,665) | ||
Decreases | 0 | ||
Translation effect | (180) | ||
Depreciation for the year | (2,374) | ||
Reversal of impairment | 0 | ||
Reclassification to assets classified as held for sale | 2,006 | ||
Property, plant and equipment depreciation, ending | (2,213) | (1,665) | |
Net book value | 4,350 | 8,857 | |
Mining property | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment depreciation, beginning | (630) | ||
Decreases | 0 | ||
Translation effect | (18) | ||
Depreciation for the year | (898) | ||
Reversal of impairment | 0 | ||
Reclassification to assets classified as held for sale | 362 | ||
Property, plant and equipment depreciation, ending | (1,184) | (630) | |
Net book value | 2,584 | 4,403 | |
Vehicles | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment depreciation, beginning | (122) | ||
Decreases | 5 | ||
Translation effect | (1) | ||
Depreciation for the year | (65) | ||
Reversal of impairment | 0 | ||
Reclassification to assets classified as held for sale | 8 | ||
Property, plant and equipment depreciation, ending | (175) | (122) | |
Net book value | 172 | 174 | |
Furniture and fixtures and software equipment | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment depreciation, beginning | (23) | ||
Decreases | 1 | ||
Translation effect | (3) | ||
Depreciation for the year | (137) | ||
Reversal of impairment | 0 | ||
Reclassification to assets classified as held for sale | 32 | ||
Property, plant and equipment depreciation, ending | (130) | (23) | |
Net book value | 387 | 264 | |
Communication equipments | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment depreciation, beginning | (39) | ||
Decreases | 0 | ||
Translation effect | 0 | ||
Depreciation for the year | (4) | ||
Reversal of impairment | 0 | ||
Reclassification to assets classified as held for sale | 0 | ||
Property, plant and equipment depreciation, ending | (43) | (39) | |
Net book value | 50 | 54 | |
Materials and spare parts | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment depreciation, beginning | (18) | ||
Decreases | 47 | ||
Translation effect | 0 | ||
Depreciation for the year | (8) | ||
Reversal of impairment | 0 | ||
Reclassification to assets classified as held for sale | 0 | ||
Property, plant and equipment depreciation, ending | 21 | (18) | |
Net book value | 477 | 610 | |
Refining and distribution industrial complex | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment depreciation, beginning | (36) | ||
Decreases | 11 | ||
Translation effect | 0 | ||
Depreciation for the year | (74) | ||
Reversal of impairment | 0 | ||
Reclassification to assets classified as held for sale | 83 | ||
Property, plant and equipment depreciation, ending | (16) | (36) | |
Net book value | 132 | 837 | |
Petrochemical Industrial Complex | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment depreciation, beginning | (27) | ||
Decreases | 0 | ||
Translation effect | 0 | ||
Depreciation for the year | (113) | ||
Reversal of impairment | 0 | ||
Reclassification to assets classified as held for sale | 0 | ||
Property, plant and equipment depreciation, ending | (140) | (27) | |
Net book value | 785 | 729 | |
Work in progress | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment depreciation, beginning | 0 | ||
Decreases | 0 | ||
Translation effect | 0 | ||
Depreciation for the year | 0 | ||
Reversal of impairment | 0 | ||
Reclassification to assets classified as held for sale | 0 | ||
Property, plant and equipment depreciation, ending | 0 | 0 | |
Net book value | 10,565 | 6,560 | |
Advances to suppliers | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment depreciation, beginning | 0 | ||
Decreases | 0 | ||
Translation effect | 0 | ||
Depreciation for the year | 0 | ||
Reversal of impairment | 0 | ||
Reclassification to assets classified as held for sale | 0 | ||
Property, plant and equipment depreciation, ending | 0 | 0 | |
Net book value | 732 | 786 | |
Other goods | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment depreciation, beginning | (6) | ||
Decreases | 0 | ||
Translation effect | 0 | ||
Depreciation for the year | (1) | ||
Reversal of impairment | 0 | ||
Reclassification to assets classified as held for sale | 0 | ||
Property, plant and equipment depreciation, ending | (7) | (6) | |
Net book value | $ 5 | $ 6 | |
[1] | Includes $ 1,940 million and $ 803 million corresponding to discontinued operations, for 2017 and 2016, respectively. |
10. PROPERTY, PLANT AND EQUI124
10. PROPERTY, PLANT AND EQUIPMENT (Details Narrative) - ARS ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Property Plant And Equipment Details Narrative | ||
Borrowing costs capitalized | $ 589 | $ 303 |
Labor costs capitalized | $ 369 | $ 419 |
11. INTANGIBLE ASSETS (Details)
11. INTANGIBLE ASSETS (Details) - ARS ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | ||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets, beginning | $ 2,380 | $ 965 | |
Increase for subsidiries acquisition | 0 | 1,297 | [1] |
Reversal of impairment | 96 | 0 | |
Increase | 0 | 118 | |
Decrease | (54) | 0 | |
Reclassification to assets held for sale | (531) | 0 | |
Intangible assets, ending | 1,891 | 2,380 | |
Concession agreements | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets, beginning | 951 | ||
Increase for subsidiries acquisition | 0 | ||
Reversal of impairment | 96 | ||
Increase | 0 | ||
Decrease | 0 | ||
Reclassification to assets held for sale | 0 | ||
Intangible assets, ending | 1,047 | 951 | |
Goodwill | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets, beginning | 999 | ||
Increase for subsidiries acquisition | 0 | ||
Reversal of impairment | 0 | ||
Increase | 0 | ||
Decrease | 0 | ||
Reclassification to assets held for sale | (311) | ||
Intangible assets, ending | 688 | 999 | |
Intangibles identified in acquisitions of companies | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets, beginning | 416 | ||
Increase for subsidiries acquisition | 0 | ||
Reversal of impairment | 0 | ||
Increase | 0 | ||
Decrease | (54) | ||
Reclassification to assets held for sale | (206) | ||
Intangible assets, ending | 156 | 416 | |
Others | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets, beginning | 14 | ||
Increase for subsidiries acquisition | 0 | ||
Reversal of impairment | 0 | ||
Increase | 0 | ||
Decrease | 0 | ||
Reclassification to assets held for sale | (14) | ||
Intangible assets, ending | $ 0 | $ 14 | |
[1] | Includes the increase of intangible assets related to the purchase of PPSL in the amount of $ 1,218 million. |
11. INTANGIBLE ASSETS (Details
11. INTANGIBLE ASSETS (Details 1) - ARS ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | ||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets amortization, beginning | $ (277) | $ (231) | |
Amortization for the year | [1] | (72) | (46) |
Reversal of impairment | (14) | 0 | |
Decrease | 0 | 0 | |
Reclassification to assets held for sale | 58 | 0 | |
Intangible assets amortization, ending | (305) | (277) | |
Concession agreements | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets amortization, beginning | (249) | ||
Amortization for the year | (27) | ||
Reversal of impairment | (14) | ||
Decrease | 0 | ||
Reclassification to assets held for sale | 0 | ||
Intangible assets amortization, ending | (290) | (249) | |
Goodwill | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets amortization, beginning | 0 | ||
Amortization for the year | 0 | ||
Reversal of impairment | 0 | ||
Decrease | 0 | ||
Reclassification to assets held for sale | 0 | ||
Intangible assets amortization, ending | 0 | 0 | |
Intangibles identified in acquisitions of companies | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets amortization, beginning | (28) | ||
Amortization for the year | (44) | ||
Reversal of impairment | 0 | ||
Decrease | 0 | ||
Reclassification to assets held for sale | 57 | ||
Intangible assets amortization, ending | (15) | (28) | |
Others | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets amortization, beginning | 0 | ||
Amortization for the year | (1) | ||
Reversal of impairment | 0 | ||
Decrease | 0 | ||
Reclassification to assets held for sale | 1 | ||
Intangible assets amortization, ending | $ 0 | $ 0 | |
[1] | Includes $ 39 million and $ 18 million corresponding to discontinued operations, for 2017 and 2016, respectively. |
11. INTANGIBLE ASSETS (Detai127
11. INTANGIBLE ASSETS (Details 2) - ARS ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets | $ 1,586 | $ 2,103 |
Concession agreements | ||
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets | 757 | 702 |
Goodwill | ||
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets | 688 | 999 |
Intangibles identified in acquisitions of companies | ||
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets | 141 | 388 |
Others | ||
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets | $ 0 | $ 14 |
12. FINANCIAL ASSETS AT FAIR128
12. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT AND LOSS (Details) - ARS ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of financial assets [line items] | ||
Non current financial assets at fair value through profit and loss | $ 150 | $ 742 |
Current financial assets at fair value through profit and loss | 14,613 | 4,188 |
Shares | ||
Disclosure of financial assets [line items] | ||
Non current financial assets at fair value through profit and loss | 150 | 150 |
Government securities | ||
Disclosure of financial assets [line items] | ||
Non current financial assets at fair value through profit and loss | 0 | 592 |
Current financial assets at fair value through profit and loss | 5,024 | 984 |
Corporate securities | ||
Disclosure of financial assets [line items] | ||
Current financial assets at fair value through profit and loss | 0 | 12 |
Investment funds | ||
Disclosure of financial assets [line items] | ||
Current financial assets at fair value through profit and loss | 9,589 | 3,189 |
Other | ||
Disclosure of financial assets [line items] | ||
Current financial assets at fair value through profit and loss | $ 0 | $ 3 |
13. FINANCIAL ASSETS AT AMOR129
13. FINANCIAL ASSETS AT AMORTIZED COST (Details) - ARS ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of financial assets [line items] | ||
Non current financial assets at amortized cost | $ 0 | $ 62 |
Current financial assets at amortized cost | 25 | 23 |
Government securities | ||
Disclosure of financial assets [line items] | ||
Non current financial assets at amortized cost | 0 | 44 |
Current financial assets at amortized cost | 11 | 2 |
Corporate securities | ||
Disclosure of financial assets [line items] | ||
Non current financial assets at amortized cost | 0 | 1 |
Financial Trustee - Gasoducto Sur Work | ||
Disclosure of financial assets [line items] | ||
Non current financial assets at amortized cost | 0 | 17 |
Current financial assets at amortized cost | $ 14 | $ 21 |
14. DEFERRED TAX ASSETS AND 130
14. DEFERRED TAX ASSETS AND LIABILITIES, INCOME TAX AND MINIMUM NOTIONAL INCOME TAX (Details) - ARS ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | |||
Property, plant and equipment | ||||
DisclosureOfDeferredTaxAssetsAndLiabilitiesLineItems [Line Items] | ||||
Deferred tax liability, beginning | $ (4,624) | $ (710) | ||
Increase for subsidiaries acquisition | (4,477) | |||
Reclassification to held for sale | 841 | |||
Profit (loss) | 2,083 | 563 | ||
Other comprehensive income (loss) | 0 | 0 | ||
Deferred tax liability, ending | (1,700) | (4,624) | ||
Investments in joint ventures and associates | ||||
DisclosureOfDeferredTaxAssetsAndLiabilitiesLineItems [Line Items] | ||||
Deferred tax liability, beginning | (1,329) | 0 | ||
Increase for subsidiaries acquisition | (1,281) | |||
Reclassification to held for sale | 0 | |||
Profit (loss) | 222 | (48) | ||
Other comprehensive income (loss) | (176) | 0 | ||
Deferred tax liability, ending | (1,283) | (1,329) | ||
Intangible assets | ||||
DisclosureOfDeferredTaxAssetsAndLiabilitiesLineItems [Line Items] | ||||
Deferred tax liability, beginning | (294) | (229) | ||
Increase for subsidiaries acquisition | (74) | |||
Reclassification to held for sale | 0 | |||
Profit (loss) | 221 | 9 | ||
Other comprehensive income (loss) | 0 | 0 | ||
Deferred tax liability, ending | (73) | (294) | ||
Trade and other receivables | ||||
DisclosureOfDeferredTaxAssetsAndLiabilitiesLineItems [Line Items] | ||||
Deferred tax liability, beginning | (851) | (266) | ||
Increase for subsidiaries acquisition | (269) | |||
Reclassification to held for sale | 0 | |||
Profit (loss) | 176 | (316) | ||
Other comprehensive income (loss) | 0 | 0 | ||
Deferred tax liability, ending | (675) | (851) | ||
Financial assets at fair value through profit and loss | ||||
DisclosureOfDeferredTaxAssetsAndLiabilitiesLineItems [Line Items] | ||||
Deferred tax liability, beginning | (95) | (49) | ||
Increase for subsidiaries acquisition | (53) | |||
Reclassification to held for sale | 0 | |||
Profit (loss) | 46 | 7 | ||
Other comprehensive income (loss) | 0 | 0 | ||
Deferred tax liability, ending | (49) | (95) | ||
Borrowings | ||||
DisclosureOfDeferredTaxAssetsAndLiabilitiesLineItems [Line Items] | ||||
Deferred tax liability, beginning | (61) | (25) | ||
Increase for subsidiaries acquisition | (43) | |||
Reclassification to held for sale | 0 | |||
Profit (loss) | (75) | 7 | ||
Other comprehensive income (loss) | 0 | 0 | ||
Deferred tax liability, ending | (136) | (61) | ||
Assets classified as held for sale | ||||
DisclosureOfDeferredTaxAssetsAndLiabilitiesLineItems [Line Items] | ||||
Deferred tax liability, beginning | 0 | |||
Reclassification to held for sale | (841) | |||
Profit (loss) | 0 | |||
Other comprehensive income (loss) | 0 | |||
Deferred tax liability, ending | (841) | 0 | ||
Other | ||||
DisclosureOfDeferredTaxAssetsAndLiabilitiesLineItems [Line Items] | ||||
Deferred tax liability, beginning | (3) | (2) | ||
Increase for subsidiaries acquisition | (21) | |||
Reclassification to held for sale | 0 | |||
Profit (loss) | 8 | 20 | ||
Other comprehensive income (loss) | 0 | 0 | ||
Deferred tax liability, ending | 5 | (3) | ||
Deferred tax liabilities | ||||
DisclosureOfDeferredTaxAssetsAndLiabilitiesLineItems [Line Items] | ||||
Deferred tax liability, beginning | (7,257) | (1,281) | ||
Increase for subsidiaries acquisition | (6,218) | |||
Reclassification to held for sale | 0 | |||
Profit (loss) | 2,681 | [1] | 242 | [2] |
Other comprehensive income (loss) | (176) | [3] | 0 | [4] |
Deferred tax liability, ending | (4,752) | (7,257) | ||
Tax loss-carryforwards | ||||
DisclosureOfDeferredTaxAssetsAndLiabilitiesLineItems [Line Items] | ||||
Deferred tax asset, beginning | 942 | 32 | ||
Increase for subsidiaries acquisition | 0 | |||
Reclassification to held for sale | 0 | |||
Profit (loss) | 694 | 910 | ||
Other comprehensive income (loss) | 0 | 0 | ||
Deferred tax asset, ending | 1,636 | 942 | ||
Trade and other receivables | ||||
DisclosureOfDeferredTaxAssetsAndLiabilitiesLineItems [Line Items] | ||||
Deferred tax asset, beginning | 194 | 53 | ||
Increase for subsidiaries acquisition | 89 | |||
Reclassification to held for sale | (5) | |||
Profit (loss) | (70) | 52 | ||
Other comprehensive income (loss) | 0 | 0 | ||
Deferred tax asset, ending | 119 | 194 | ||
Financial assets at fair value through profit and loss | ||||
DisclosureOfDeferredTaxAssetsAndLiabilitiesLineItems [Line Items] | ||||
Deferred tax asset, beginning | 0 | 8 | ||
Increase for subsidiaries acquisition | 0 | |||
Reclassification to held for sale | 0 | |||
Profit (loss) | 12 | (8) | ||
Other comprehensive income (loss) | 0 | 0 | ||
Deferred tax asset, ending | 12 | 0 | ||
Trade and other payables | ||||
DisclosureOfDeferredTaxAssetsAndLiabilitiesLineItems [Line Items] | ||||
Deferred tax asset, beginning | 1,124 | 333 | ||
Increase for subsidiaries acquisition | 0 | |||
Reclassification to held for sale | 0 | |||
Profit (loss) | 58 | 791 | ||
Other comprehensive income (loss) | 0 | 0 | ||
Deferred tax asset, ending | 1,182 | 1,124 | ||
Defined benefit plans | ||||
DisclosureOfDeferredTaxAssetsAndLiabilitiesLineItems [Line Items] | ||||
Deferred tax asset, beginning | 361 | 109 | ||
Increase for subsidiaries acquisition | 170 | |||
Reclassification to held for sale | (56) | |||
Profit (loss) | (41) | 55 | ||
Other comprehensive income (loss) | (4) | 27 | ||
Deferred tax asset, ending | 260 | 361 | ||
Provisions | ||||
DisclosureOfDeferredTaxAssetsAndLiabilitiesLineItems [Line Items] | ||||
Deferred tax asset, beginning | 1,722 | 134 | ||
Increase for subsidiaries acquisition | 1,372 | |||
Reclassification to held for sale | (306) | |||
Profit (loss) | (674) | 216 | ||
Other comprehensive income (loss) | 0 | 0 | ||
Deferred tax asset, ending | 742 | 1,722 | ||
Taxes payable | ||||
DisclosureOfDeferredTaxAssetsAndLiabilitiesLineItems [Line Items] | ||||
Deferred tax asset, beginning | 224 | 49 | ||
Increase for subsidiaries acquisition | 379 | |||
Reclassification to held for sale | 0 | |||
Profit (loss) | (55) | (192) | ||
Other comprehensive income (loss) | 0 | (12) | ||
Deferred tax asset, ending | 169 | 224 | ||
Liabilities associated to assets classified as held for sale | ||||
DisclosureOfDeferredTaxAssetsAndLiabilitiesLineItems [Line Items] | ||||
Deferred tax asset, beginning | 0 | |||
Reclassification to held for sale | 367 | |||
Profit (loss) | 0 | |||
Other comprehensive income (loss) | 0 | |||
Deferred tax asset, ending | 367 | 0 | ||
Other | ||||
DisclosureOfDeferredTaxAssetsAndLiabilitiesLineItems [Line Items] | ||||
Deferred tax asset, beginning | 126 | 23 | ||
Increase for subsidiaries acquisition | 112 | |||
Reclassification to held for sale | 0 | |||
Profit (loss) | (81) | (9) | ||
Other comprehensive income (loss) | 0 | 0 | ||
Deferred tax asset, ending | 45 | 126 | ||
Deferred tax asset | ||||
DisclosureOfDeferredTaxAssetsAndLiabilitiesLineItems [Line Items] | ||||
Deferred tax asset, beginning | 4,693 | 741 | ||
Increase for subsidiaries acquisition | 2,122 | |||
Reclassification to held for sale | 0 | |||
Profit (loss) | (157) | [1] | 1,815 | [2] |
Other comprehensive income (loss) | (4) | [3] | 15 | [4] |
Deferred tax asset, ending | $ 4,532 | $ 4,693 | ||
[1] | Includes a loss of $ 618 million corresponding to discontinued operations. | |||
[2] | Includes a loss of $ 103 million corresponding to discontinued operations. | |||
[3] | Includes a loss of $ 180 million corresponding to discontinued operations. | |||
[4] | Includes a gain of $ 17 million corresponding to discontinued operations. |
14. DEFERRED TAX ASSETS AND 131
14. DEFERRED TAX ASSETS AND LIABILITIES, INCOME TAX AND MINIMUM NOTIONAL INCOME TAX (Details 1) - ARS ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred Tax Assets And Liabilities Income Tax And Minimum Notional Income Tax Details 1 | ||
Deferred tax asset | $ 1,306 | $ 1,232 |
Deferred tax liabilities | (1,526) | (3,796) |
Deferred tax liabilities, net | $ (220) | $ (2,564) |
14. DEFERRED TAX ASSETS AND 132
14. DEFERRED TAX ASSETS AND LIABILITIES, INCOME TAX AND MINIMUM NOTIONAL INCOME TAX (Details 2) - ARS ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Deferred Tax Assets And Liabilities Income Tax And Minimum Notional Income Tax Details 2 | |||
Current tax | $ 1,385 | $ 1,021 | $ 370 |
Deferred tax | (2,524) | (2,057) | 163 |
Direct changes for income tax | 79 | 0 | 0 |
Difference in the estimate of previous fiscal year income tax and the income return | (307) | (5) | 0 |
Other comprehensive (loss) income | 0 | (15) | 0 |
Minimum notional tax | 0 | (145) | 54 |
Income tax and minimum notional income tax | $ (1,367) | $ (1,201) | $ 587 |
14. DEFERRED TAX ASSETS AND 133
14. DEFERRED TAX ASSETS AND LIABILITIES, INCOME TAX AND MINIMUM NOTIONAL INCOME TAX (Details 3) - ARS ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Deferred Tax Assets And Liabilities Income Tax And Minimum Notional Income Tax Details 3 | |||
Profit (loss) for the year before tax | $ 4,209 | $ (1,525) | $ 4,436 |
Current tax rate | 35.00% | 35.00% | 35.00% |
Result at the tax rate | $ 1,473 | $ (534) | $ 1,553 |
Share of profit of joint ventures and associates | (208) | (39) | 0 |
Non-taxable results | (1,347) | (731) | (1,045) |
Non-deductible costs | 194 | 0 | 0 |
Non-deductible provisions | 121 | 123 | 12 |
Other | 9 | 131 | (2) |
Effect of tax rate change in deferred tax | (449) | 0 | 0 |
Minimum notional income tax credit | 0 | (145) | 54 |
Difference in the estimate of previous fiscal year income tax and the income tax statement | (447) | 13 | 45 |
Deferred tax not previously recognized | (714) | 17 | (282) |
Deferred tax assets not recognized | 1 | (36) | 252 |
Total income tax (gain) expense | $ (1,367) | $ (1,201) | $ 587 |
14. DEFERRED TAX ASSETS AND 134
14. DEFERRED TAX ASSETS AND LIABILITIES, INCOME TAX AND MINIMUM NOTIONAL INCOME TAX (Details 4) - ARS ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
DisclosureOfTaxLossCarryforwardsLineItems [Line Items] | ||
Tax loss-carryforwards | $ 1,636 | $ 1,629 |
Unrecognized deferred assets | 0 | (687) |
Recognized tax loss-carryforwards | 1,636 | 942 |
2,017 | ||
DisclosureOfTaxLossCarryforwardsLineItems [Line Items] | ||
Tax loss-carryforwards | 0 | 167 |
2,018 | ||
DisclosureOfTaxLossCarryforwardsLineItems [Line Items] | ||
Tax loss-carryforwards | 1 | 115 |
2,019 | ||
DisclosureOfTaxLossCarryforwardsLineItems [Line Items] | ||
Tax loss-carryforwards | 1 | 153 |
2,020 | ||
DisclosureOfTaxLossCarryforwardsLineItems [Line Items] | ||
Tax loss-carryforwards | 10 | 252 |
2,021 | ||
DisclosureOfTaxLossCarryforwardsLineItems [Line Items] | ||
Tax loss-carryforwards | 684 | 942 |
2,022 | ||
DisclosureOfTaxLossCarryforwardsLineItems [Line Items] | ||
Tax loss-carryforwards | $ 940 | $ 0 |
14. DEFERRED TAX ASSETS AND 135
14. DEFERRED TAX ASSETS AND LIABILITIES, INCOME TAX AND MINIMUM NOTIONAL INCOME TAX (Details Narrative) - ARS ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred Tax Assets And Liabilities Income Tax And Minimum Notional Income Tax Details Narrative | ||
Accumulated tax losses | $ 5,548 | $ 4,283 |
Unrecognized deferred assets | $ 0 | $ (687) |
15. TRADE AND OTHER RECEIVAB136
15. TRADE AND OTHER RECEIVABLES (Details) - ARS ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
DisclosureOfTradeAndOtherReceivablesLineItems [Line Items] | ||
Non current trade receivables | $ 2,874 | $ 2,292 |
Non current other receivables | 2,168 | 2,177 |
Non current trade and other receivables | 5,042 | 4,469 |
Current trade receivables | 12,259 | 8,904 |
Current other receivables | 6,886 | 5,240 |
Current trade and other receivables | 19,145 | 14,144 |
CAMMESA Receivable | ||
DisclosureOfTradeAndOtherReceivablesLineItems [Line Items] | ||
Non current trade receivables | 2,868 | 2,286 |
Current trade receivables | 421 | 519 |
Other | ||
DisclosureOfTradeAndOtherReceivablesLineItems [Line Items] | ||
Non current trade receivables | 6 | 6 |
Non current other receivables | 11 | 9 |
Current trade receivables | 136 | 25 |
Current other receivables | 528 | 343 |
Tax credits | ||
DisclosureOfTradeAndOtherReceivablesLineItems [Line Items] | ||
Non current other receivables | 163 | 533 |
Current other receivables | 1,290 | 415 |
Allowance for tax credits | ||
DisclosureOfTradeAndOtherReceivablesLineItems [Line Items] | ||
Non current other receivables | (14) | (105) |
Related parties | ||
DisclosureOfTradeAndOtherReceivablesLineItems [Line Items] | ||
Non current other receivables | 794 | 740 |
Current trade receivables | 170 | 108 |
Current other receivables | 215 | 98 |
Prepaid expenses | ||
DisclosureOfTradeAndOtherReceivablesLineItems [Line Items] | ||
Non current other receivables | 20 | 26 |
Current other receivables | 69 | 121 |
Financial credit | ||
DisclosureOfTradeAndOtherReceivablesLineItems [Line Items] | ||
Non current other receivables | 37 | 44 |
Current other receivables | 83 | 126 |
Guarantee deposits | ||
DisclosureOfTradeAndOtherReceivablesLineItems [Line Items] | ||
Non current other receivables | 92 | 80 |
Current other receivables | 1,053 | 941 |
Contractual receivables in Ecuador | ||
DisclosureOfTradeAndOtherReceivablesLineItems [Line Items] | ||
Non current other receivables | 998 | 850 |
Receivable for sale of property, plant and equipment | ||
DisclosureOfTradeAndOtherReceivablesLineItems [Line Items] | ||
Non current other receivables | 67 | 0 |
Receivables from energy distribution | ||
DisclosureOfTradeAndOtherReceivablesLineItems [Line Items] | ||
Current trade receivables | 6,115 | 4,138 |
Receivables from MAT | ||
DisclosureOfTradeAndOtherReceivablesLineItems [Line Items] | ||
Current trade receivables | 436 | 311 |
CAMMESA | ||
DisclosureOfTradeAndOtherReceivablesLineItems [Line Items] | ||
Current trade receivables | 2,887 | 1,501 |
Receivables from oil and gas sales | ||
DisclosureOfTradeAndOtherReceivablesLineItems [Line Items] | ||
Current trade receivables | 769 | 1,038 |
Receivables from refinery and distribution | ||
DisclosureOfTradeAndOtherReceivablesLineItems [Line Items] | ||
Current trade receivables | 958 | 949 |
Receivables from petrochemistry | ||
DisclosureOfTradeAndOtherReceivablesLineItems [Line Items] | ||
Current trade receivables | 924 | 744 |
Allowance for doubtful accounts | ||
DisclosureOfTradeAndOtherReceivablesLineItems [Line Items] | ||
Current trade receivables | (557) | (429) |
Advances to suppliers | ||
DisclosureOfTradeAndOtherReceivablesLineItems [Line Items] | ||
Current other receivables | 11 | 24 |
Advances to employees | ||
DisclosureOfTradeAndOtherReceivablesLineItems [Line Items] | ||
Current other receivables | 25 | 17 |
Receivables for non-electrical activities | ||
DisclosureOfTradeAndOtherReceivablesLineItems [Line Items] | ||
Current other receivables | 218 | 143 |
Receivable for sale of interests in subsidiaries and financial instruments | ||
DisclosureOfTradeAndOtherReceivablesLineItems [Line Items] | ||
Current other receivables | 0 | 1,263 |
Natural Gas Surplus Injection Promotion Program | ||
DisclosureOfTradeAndOtherReceivablesLineItems [Line Items] | ||
Current other receivables | 2,592 | 1,582 |
Insurance to recover | ||
DisclosureOfTradeAndOtherReceivablesLineItems [Line Items] | ||
Current other receivables | 202 | 0 |
Expenses to be recovered | ||
DisclosureOfTradeAndOtherReceivablesLineItems [Line Items] | ||
Current other receivables | 371 | 314 |
Receivables from arbitral proceedings | ||
DisclosureOfTradeAndOtherReceivablesLineItems [Line Items] | ||
Current other receivables | 388 | 0 |
Allowance for other receivables | ||
DisclosureOfTradeAndOtherReceivablesLineItems [Line Items] | ||
Current other receivables | $ (159) | $ (147) |
15. TRADE AND OTHER RECEIVAB137
15. TRADE AND OTHER RECEIVABLES (Details 1) - ARS ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
DisclosureOfExpiredTradeReceivablesLineItems [Line Items] | ||
Expired trade receivables | $ 1,653 | $ 2,766 |
Less than three months | ||
DisclosureOfExpiredTradeReceivablesLineItems [Line Items] | ||
Expired trade receivables | 878 | 2,432 |
Three to six months | ||
DisclosureOfExpiredTradeReceivablesLineItems [Line Items] | ||
Expired trade receivables | 450 | 135 |
Six to nine months | ||
DisclosureOfExpiredTradeReceivablesLineItems [Line Items] | ||
Expired trade receivables | 22 | 37 |
Nine to twelve months | ||
DisclosureOfExpiredTradeReceivablesLineItems [Line Items] | ||
Expired trade receivables | 301 | 161 |
Less than one year | ||
DisclosureOfExpiredTradeReceivablesLineItems [Line Items] | ||
Expired trade receivables | $ 2 | $ 1 |
15. TRADE AND OTHER RECEIVAB138
15. TRADE AND OTHER RECEIVABLES (Details 2) - ARS ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Trade And Other Receivables Details 2 | ||
Allowance for the impairment of trade receivables, beginning | $ 429 | $ 88 |
Allowance for impairment | 289 | 252 |
Decreases | (45) | (30) |
Reversal of unused amounts | (1) | (23) |
Reclassification to assets held for sale | (115) | 0 |
Increase for purchases of subsidiaries | 0 | 142 |
Allowance for the impairment of trade receivables, ending | $ 557 | $ 429 |
15. TRADE AND OTHER RECEIVAB139
15. TRADE AND OTHER RECEIVABLES (Details 3) - ARS ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Trade And Other Receivables Details 3 | ||
Allowance for the impairment of other receivables, beginning | $ 252 | $ 314 |
Allowance for impairment | 33 | 49 |
Decreases | (15) | (9) |
Decreases due to deconsolidation | 0 | (3) |
Reversal of unused amounts | (97) | (180) |
Increase for subsidiaries acquisition | 0 | 81 |
Allowance for the impairment of other receivables, ending | $ 173 | $ 252 |
15. TRADE AND OTHER RECEIVAB140
15. TRADE AND OTHER RECEIVABLES (Details Narrative) - ARS ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Trade And Other Receivables Details Narrative | |||
Expired trade receivables | $ 1,653 | $ 2,766 | |
Allowance for the impairment of trade receivables | 557 | 429 | $ 88 |
Allowance for the impairment of other receivables | $ 173 | $ 252 | $ 314 |
16. INVENTORIES (Details)
16. INVENTORIES (Details) - ARS ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
DisclosureOfInventoryLineItems [Line Items] | ||||
Inventories | $ 2,326 | $ 3,360 | $ 225 | $ 136 |
Materials and spare parts | ||||
DisclosureOfInventoryLineItems [Line Items] | ||||
Inventories | 1,514 | 1,336 | ||
Advances to suppliers | ||||
DisclosureOfInventoryLineItems [Line Items] | ||||
Inventories | 143 | 103 | ||
In process and finished products | ||||
DisclosureOfInventoryLineItems [Line Items] | ||||
Inventories | 640 | 1,496 | ||
Stock of crude oil | ||||
DisclosureOfInventoryLineItems [Line Items] | ||||
Inventories | $ 29 | $ 425 |
17. CASH AND CASH EQUIVALENT142
17. CASH AND CASH EQUIVALENTS (Details) - ARS ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
DisclosureOfCashAndCashEquivalentsLineItems [Line Items] | ||||
Cash and cash equivalents | $ 799 | $ 1,421 | $ 517 | $ 335 |
Cash | ||||
DisclosureOfCashAndCashEquivalentsLineItems [Line Items] | ||||
Cash and cash equivalents | 30 | 16 | ||
Banks | ||||
DisclosureOfCashAndCashEquivalentsLineItems [Line Items] | ||||
Cash and cash equivalents | 327 | 1,308 | ||
Investment funds | ||||
DisclosureOfCashAndCashEquivalentsLineItems [Line Items] | ||||
Cash and cash equivalents | 0 | 61 | ||
Time deposits | ||||
DisclosureOfCashAndCashEquivalentsLineItems [Line Items] | ||||
Cash and cash equivalents | $ 442 | $ 36 |
18. SHARE CAPITAL (Details Narr
18. SHARE CAPITAL (Details Narrative) | Dec. 31, 2017shares |
Disclosure of classes of share capital [line items] | |
Shares, outstanding | 2,080,190,514 |
Shares, issued | 1,836,494.69 |
Treasury shares | |
Disclosure of classes of share capital [line items] | |
Shares, outstanding | 2,500,000 |
19. TRADE AND OTHER PAYABLES (D
19. TRADE AND OTHER PAYABLES (Details) - ARS ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
DisclosureOfTradeAndOtherPayablesLineItems [Line Items] | ||
Non current trade payables | $ 241 | $ 233 |
Non current other payables | 6,163 | 5,103 |
Non current trade and other payables | 6,404 | 5,336 |
Current trade payables | 16,644 | 11,866 |
Current other payables | 1,408 | 1,001 |
Current trade and other payables | 18,052 | 12,867 |
Customer contributions | ||
DisclosureOfTradeAndOtherPayablesLineItems [Line Items] | ||
Non current trade payables | 80 | 98 |
Current trade payables | 19 | 46 |
Funding contributions for substations | ||
DisclosureOfTradeAndOtherPayablesLineItems [Line Items] | ||
Non current trade payables | 60 | 52 |
Current trade payables | 8 | 22 |
Customer guarantees | ||
DisclosureOfTradeAndOtherPayablesLineItems [Line Items] | ||
Non current trade payables | 101 | 83 |
Current trade payables | 1 | 15 |
ENRE Penalties and discounts | ||
DisclosureOfTradeAndOtherPayablesLineItems [Line Items] | ||
Non current other payables | 3,886 | 3,477 |
Current other payables | 288 | 56 |
Loans (mutuums) with CAMMESA | ||
DisclosureOfTradeAndOtherPayablesLineItems [Line Items] | ||
Non current other payables | 1,885 | 1,347 |
Compensation agreements | ||
DisclosureOfTradeAndOtherPayablesLineItems [Line Items] | ||
Non current other payables | 124 | 0 |
Current other payables | 562 | 708 |
Liability with FOTAE | ||
DisclosureOfTradeAndOtherPayablesLineItems [Line Items] | ||
Non current other payables | 190 | 173 |
Payment agreement with ENRE | ||
DisclosureOfTradeAndOtherPayablesLineItems [Line Items] | ||
Non current other payables | 73 | 106 |
Current other payables | 63 | 60 |
Other | ||
DisclosureOfTradeAndOtherPayablesLineItems [Line Items] | ||
Non current other payables | 5 | 0 |
Current trade payables | 12 | 6 |
Current other payables | 264 | 94 |
Suppliers | ||
DisclosureOfTradeAndOtherPayablesLineItems [Line Items] | ||
Current trade payables | 8,687 | 5,705 |
CAMMESA | ||
DisclosureOfTradeAndOtherPayablesLineItems [Line Items] | ||
Current trade payables | 7,595 | 5,470 |
Discounts to customers | ||
DisclosureOfTradeAndOtherPayablesLineItems [Line Items] | ||
Current trade payables | 37 | 37 |
Customer advances | ||
DisclosureOfTradeAndOtherPayablesLineItems [Line Items] | ||
Current trade payables | 205 | 384 |
Related parties | ||
DisclosureOfTradeAndOtherPayablesLineItems [Line Items] | ||
Current trade payables | 80 | 181 |
Current other payables | 12 | 14 |
Advances for works to be executed | ||
DisclosureOfTradeAndOtherPayablesLineItems [Line Items] | ||
Current other payables | 14 | 14 |
Other creditors | ||
DisclosureOfTradeAndOtherPayablesLineItems [Line Items] | ||
Current other payables | $ 205 | $ 55 |
20. BORROWINGS (Details)
20. BORROWINGS (Details) - ARS ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of detailed information about borrowings [line items] | ||
Non current borrowings | $ 37,126 | $ 15,286 |
Current borrowings | 5,840 | 10,686 |
Financial borrowings | ||
Disclosure of detailed information about borrowings [line items] | ||
Non current borrowings | 5,950 | 691 |
Current borrowings | 5,097 | 7,539 |
Corporate bonds | ||
Disclosure of detailed information about borrowings [line items] | ||
Non current borrowings | 27,764 | 12,158 |
Current borrowings | 739 | 2,246 |
CAMMESA financing | ||
Disclosure of detailed information about borrowings [line items] | ||
Non current borrowings | 3,398 | 2,421 |
Current borrowings | 0 | 34 |
Related parties | ||
Disclosure of detailed information about borrowings [line items] | ||
Non current borrowings | 14 | 16 |
Current borrowings | 4 | 21 |
Bank overdrafts | ||
Disclosure of detailed information about borrowings [line items] | ||
Current borrowings | $ 0 | $ 846 |
20. BORROWINGS (Details 1)
20. BORROWINGS (Details 1) - ARS ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | $ 42,966 | $ 25,972 | $ 7,993 |
Fixed interest rate | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 36,039 | 17,034 | |
Fixed interest rate | Less than one year | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 4,667 | 5,335 | |
Fixed interest rate | One to two years | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 550 | 536 | |
Fixed interest rate | Two to five years | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 7,509 | 580 | |
Fixed interest rate | Up to five years | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 23,313 | 10,583 | |
Floating interest rates | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 5,711 | 8,287 | |
Floating interest rates | Less than one year | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 594 | 4,918 | |
Floating interest rates | One to two years | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 610 | 207 | |
Floating interest rates | Two to five years | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 2,561 | 3,162 | |
Floating interest rates | Up to five years | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 1,946 | 0 | |
Non interest accrual | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 1,216 | 651 | |
Non interest accrual | Less than one year | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 579 | 433 | |
Non interest accrual | One to two years | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 0 | (5) | |
Non interest accrual | Two to five years | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 530 | 223 | |
Non interest accrual | Up to five years | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | $ 107 | $ 0 |
20. BORROWINGS (Details 2)
20. BORROWINGS (Details 2) - ARS ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | ||
Borrowings Details 2 | |||
Borrowings, beginning | $ 25,972 | $ 7,993 | |
Proceeds from borrowings | 26,892 | 18,367 | |
Payment of borrowings | (16,150) | (6,813) | |
Accrued interest | 3,252 | 2,715 | |
Payment of borrowings' interests | (2,469) | (1,519) | |
Net foreign currency exchange difference | 5,150 | 1,761 | |
Increase for subsiadiries acquisition | 0 | 7,434 | |
Costs capitalized in property, plant and equipment | 329 | 244 | |
Decrease through shares of subsidiaries | 0 | (1,179) | [1] |
Decrease through offsetting with other credits | 0 | (1,951) | [2] |
Decrease through offsetting with trade receivables | (4) | (242) | |
Repurchase and redemption of corporate bonds | (28) | (893) | |
Other financial results | 22 | 55 | |
Borrowings, ending | $ 42,966 | $ 25,972 | |
[1] | Corresponding to US$ 77.4 million related to EMES financing. | ||
[2] | Corresponding to US$ 123 million (comprised of US$ 120 million of principal plus US$ 3 million of interests) related to YPF financing. |
20. BORROWINGS (Details 3)
20. BORROWINGS (Details 3) $ in Millions, $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2017ARS ($) | Dec. 31, 2016ARS ($) | Dec. 31, 2016USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015ARS ($) | ||
Disclosure of detailed information about borrowings [line items] | |||||||
Book value | $ 42,966 | $ 25,972 | $ 7,993 | ||||
Corporate bonds 1 | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Instrument name | 2022 CB | ||||||
Company name | Edenor | ||||||
Residual value | $ 172 | ||||||
Interest | Fixed | ||||||
Rate | 10% | ||||||
Expiration | 2,022 | ||||||
Book value | $ 3,321 | ||||||
Corporate bonds 2 | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Instrument name | Class 4 CB | ||||||
Company name | PAMPA | ||||||
Residual value | 34 | ||||||
Interest | Fixed | ||||||
Rate | 6% | ||||||
Expiration | 10/30/2020 | ||||||
Book value | $ 638 | ||||||
Corporate bonds 3 | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Instrument name | Class E CB | ||||||
Company name | PAMPA | ||||||
Residual value | $ 575 | ||||||
Interest | Variable | ||||||
Rate | Badlar | ||||||
Expiration | 11/13/2020 | ||||||
Book value | $ 590 | ||||||
Corporate bonds 4 | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Instrument name | Class A CB | ||||||
Company name | PAMPA | ||||||
Residual value | $ 282 | ||||||
Interest | Variable | ||||||
Rate | Badlar | ||||||
Expiration | 10/5/2018 | ||||||
Book value | $ 297 | ||||||
Corporate bonds 5 | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Instrument name | T Series CB | ||||||
Company name | [1] | PAMPA | |||||
Residual value | 500 | ||||||
Interest | Fixed | ||||||
Rate | 7% | ||||||
Expiration | 7/21/2023 | ||||||
Book value | $ 9,491 | ||||||
Corporate bonds 6 | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Instrument name | Class 1 CB | ||||||
Company name | [2] | PAMPA | |||||
Residual value | 750 | ||||||
Interest | Fixed | ||||||
Rate | 8% | ||||||
Expiration | 1/24/2027 | ||||||
Book value | $ 14,184 | ||||||
Corporate bonds 7 | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Instrument name | CB at Par | CB at Par | |||||
Company name | EASA | EASA | |||||
Residual value | $ 4 | ||||||
Amount repurchased | $ 2 | ||||||
Interest | Fixed | Fixed | |||||
Rate | 5% | 5% | |||||
Expiration | 12/16/2017 | 12/16/2017 | |||||
Book value | $ 27 | ||||||
Corporate bonds 8 | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Instrument name | Discount CB | Discount CB | |||||
Company name | EASA | EASA | |||||
Residual value | 130 | ||||||
Amount repurchased | $ 130 | ||||||
Interest | Fixed | Fixed | |||||
Rate | 9% | 9% | |||||
Expiration | 12/16/2021 | 12/16/2021 | |||||
Book value | $ 0 | ||||||
Corporate bonds 9 | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Instrument name | 2022 CB | 2022 CB | |||||
Company name | Edenor | Edenor | |||||
Residual value | 172 | ||||||
Amount repurchased | $ 0 | ||||||
Interest | Fixed | Fixed | |||||
Rate | 10% | 10% | |||||
Expiration | 10/25/2022 | 10/25/2022 | |||||
Book value | $ 2,823 | ||||||
Corporate bonds 10 | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Instrument name | 2017 CB | 2017 CB | |||||
Company name | Edenor | Edenor | |||||
Residual value | 15 | ||||||
Amount repurchased | $ 15 | ||||||
Interest | Fixed | Fixed | |||||
Rate | 11% | 11% | |||||
Expiration | 10/9/2017 | 10/9/2017 | |||||
Book value | $ 0 | ||||||
Corporate bonds 11 | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Instrument name | Class 7 CB | Class 7 CB | |||||
Company name | CTG | CTG | |||||
Residual value | $ 173 | ||||||
Amount repurchased | $ 0 | ||||||
Interest | Variable | Variable | |||||
Rate | Badlar + 3,5% | Badlar + 3,5% | |||||
Expiration | 2/12/2018 | 2/12/2018 | |||||
Book value | $ 179 | ||||||
Corporate bonds 12 | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Instrument name | Class 8 CB | Class 8 CB | |||||
Company name | CTG | CTG | |||||
Residual value | 1 | ||||||
Amount repurchased | $ 0 | ||||||
Interest | Fixed | Fixed | |||||
Rate | 7% | 7% | |||||
Expiration | 8/12/2020 | 8/12/2020 | |||||
Book value | $ 22 | ||||||
Corporate bonds 13 | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Instrument name | Class 3 CB | Class 3 CB | |||||
Company name | CTLL | CTLL | |||||
Residual value | $ 51 | ||||||
Amount repurchased | $ 0 | ||||||
Interest | Variable | Variable | |||||
Rate | Badlar + 5% | Badlar + 5% | |||||
Expiration | 10/30/2017 | 10/30/2017 | |||||
Book value | $ 53 | ||||||
Corporate bonds 14 | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Instrument name | Class 4 CB | Class 4 CB | |||||
Company name | CTLL | CTLL | |||||
Residual value | 30 | ||||||
Amount repurchased | $ 0 | ||||||
Interest | Fixed | Fixed | |||||
Rate | 6% | 6% | |||||
Expiration | 10/30/2020 | 10/30/2020 | |||||
Book value | $ 543 | ||||||
Corporate bonds 15 | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Instrument name | Class C CB | Class C CB | |||||
Company name | CTLL | CTLL | |||||
Residual value | $ 258 | ||||||
Amount repurchased | $ 0 | ||||||
Interest | Fixed/Vble. | Fixed/Vble. | |||||
Rate | Badlar + 4,5% and 27,75% | Badlar + 4,5% and 27,75% | |||||
Expiration | 5/6/2017 | 5/6/2017 | |||||
Book value | $ 267 | ||||||
Corporate bonds 16 | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Instrument name | Class E CB | Class E CB | |||||
Company name | CTLL | CTLL | |||||
Residual value | $ 575 | ||||||
Amount repurchased | $ 0 | ||||||
Interest | Variable | Variable | |||||
Rate | Badlar | Badlar | |||||
Expiration | 11/13/2020 | 11/13/2020 | |||||
Book value | $ 589 | ||||||
Corporate bonds 17 | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Instrument name | Class A CB | Class A CB | |||||
Company name | CTLL | CTLL | |||||
Residual value | $ 282 | ||||||
Amount repurchased | $ 0 | ||||||
Interest | Variable | Variable | |||||
Rate | Badlar | Badlar | |||||
Expiration | 10/5/2018 | 10/5/2018 | |||||
Book value | $ 297 | ||||||
Corporate bonds 18 | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Instrument name | Class II CB | Class II CB | |||||
Company name | PEPASA | PEPASA | |||||
Residual value | $ 525 | ||||||
Amount repurchased | $ 0 | ||||||
Interest | Variable | Variable | |||||
Rate | Badlar | Badlar | |||||
Expiration | 6/6/2017 | 6/6/2017 | |||||
Book value | $ 532 | ||||||
Corporate bonds 19 | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Instrument name | Class VII CB | Class VII CB | |||||
Company name | PEPASA | PEPASA | |||||
Residual value | $ 310 | ||||||
Amount repurchased | $ 0 | ||||||
Interest | Variable | Variable | |||||
Rate | Badlar + 5% | Badlar + 5% | |||||
Expiration | 8/3/2017 | 8/3/2017 | |||||
Book value | $ 322 | ||||||
Corporate bonds 20 | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Instrument name | Class VIII CB | Class VIII CB | |||||
Company name | PEPASA | PEPASA | |||||
Residual value | $ 403 | ||||||
Amount repurchased | $ 0 | ||||||
Interest | Variable | Variable | |||||
Rate | Badlar + 4% | Badlar + 4% | |||||
Expiration | 6/22/2017 | 6/22/2017 | |||||
Book value | $ 402 | ||||||
Corporate bonds 21 | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Instrument name | STV 14 | STV 14 | |||||
Company name | PEPASA | PEPASA | |||||
Residual value | $ 296 | ||||||
Amount repurchased | $ 0 | ||||||
Interest | Variable | Variable | |||||
Rate | Badlar + 5,9% | Badlar + 5,9% | |||||
Expiration | 4/14/2017 | 4/14/2017 | |||||
Book value | $ 311 | ||||||
Corporate bonds 22 | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Instrument name | T Series CB | T Series CB | |||||
Company name | [1] | PAMPA | PAMPA | ||||
Residual value | 500 | ||||||
Amount repurchased | $ 0 | ||||||
Interest | Fixed | Fixed | |||||
Rate | 7% | 7% | |||||
Expiration | 7/21/2023 | 7/21/2023 | |||||
Book value | $ 8,074 | ||||||
Regulatory 1 | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Instrument name | CAMMESA 2014 Agreement | ||||||
Company name | PAMPA | ||||||
Residual value | $ 855 | ||||||
Interest | Variable | ||||||
Rate | CAMMESA | ||||||
Expiration | On December 1, 2014, CTLL and CAMMESA signed a Financing and Assignment of Loan Agreement in order to finance the works of the 2014 Agreement Project (see Note 47.1). The financing will be canceled, at Pampa option, through a payment in cash or through offsetting with CAMMESA receivables of the Company and other subsidiaries, 36 months as from the month following the commercial commissioning of the last generating unit making up the Projects. | ||||||
Book value | $ 1,572 | ||||||
Regulatory 2 | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Instrument name | CAMMESA Mapro | ||||||
Company name | PAMPA | ||||||
Residual value | $ 140 | ||||||
Interest | Variable | ||||||
Rate | CAMMESA | ||||||
Expiration | Corresponds to the mutual contracts entered into with CAMMESA to finance major maintenance works related to the different generation units approved by the SE. The financing will be amortized in 36 monthly and consecutive installments as from the completion of the works, this term could be extended by 12 months. Maintenance Remuneration will be used to cancel the financing granted. As a result of the entry into force of the new remuneration scheme (Resolution SE No. 19-E /17), the Maintenance Remuneration was discontinued and it was defined that the balance of the financing will be repayable through the discount of US $ 1 / MWh for the energy generated until its total cancellation. | ||||||
Book value | $ 193 | ||||||
Regulatory 3 | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Instrument name | CAMMESA Mapro | ||||||
Company name | CPB | ||||||
Residual value | $ 1,088 | ||||||
Interest | Variable | ||||||
Rate | CAMMESA | ||||||
Expiration | Corresponds to the mutual contracts entered into with CAMMESA to finance major maintenance works related to the different generation units approved by the SE. The financing will be amortized in 36 monthly and consecutive installments as from the completion of the works, this term could be extended by 12 months. Maintenance Remuneration will be used to cancel the financing granted. As a result of the entry into force of the new remuneration scheme (Resolution SE No. 19-E /17), the Maintenance Remuneration was discontinued and it was defined that the balance of the financing will be repayable through the discount of US $ 1 / MWh for the energy generated until its total cancellation. | ||||||
Book value | $ 1,633 | ||||||
Regulatory 4 | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Instrument name | CAMMESA 2014 Agreement | CAMMESA 2014 Agreement | |||||
Company name | CTLL | CTLL | |||||
Residual value | $ 736 | ||||||
Interest | Variable | Variable | |||||
Rate | CAMMESA | CAMMESA | |||||
Expiration | On December 1, 2014, CTLL and CAMMESA signed a Financing and Assignment of Loan Agreement in order to finance the works of the 2014 Agreement Project (see Note 47.1). The financing will be canceled, at Pampa option, through a payment in cash or through offsetting with CAMMESA receivables of the Company and other subsidiaries, 36 months as from the month following the commercial commissioning of the last generating unit making up the Projects. | On December 1, 2014, CTLL and CAMMESA signed a Financing and Assignment of Loan Agreement in order to finance the works of the 2014 Agreement Project (see Note 47.1). The financing will be canceled, at Pampa option, through a payment in cash or through offsetting with CAMMESA receivables of the Company and other subsidiaries, 36 months as from the month following the commercial commissioning of the last generating unit making up the Projects. | |||||
Book value | $ 1,154 | ||||||
Regulatory 5 | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Instrument name | CAMMESA Mapro | CAMMESA Mapro | |||||
Company name | CTLL | CTLL | |||||
Residual value | $ 337 | ||||||
Interest | Variable | Variable | |||||
Rate | CAMMESA | CAMMESA | |||||
Expiration | Corresponds to the mutual contracts entered into with CAMMESA to finance major maintenance works related to the different generation units approved by the SE. The financing will be amortized in 36 monthly and consecutive installments as from the completion of the works, this term could be extended by 12 months. Maintenance Remuneration will be used to cancel the financing granted. As a result of the entry into force of the new remuneration scheme (Resolution SE No. 19-E /17), the Maintenance Remuneration was discontinued and it was defined that the balance of the financing will be repayable through the discount of US $ 1 / MWh for the energy generated until its total cancellation. | Corresponds to the mutual contracts entered into with CAMMESA to finance major maintenance works related to the different generation units approved by the SE. The financing will be amortized in 36 monthly and consecutive installments as from the completion of the works, this term could be extended by 12 months. Maintenance Remuneration will be used to cancel the financing granted. As a result of the entry into force of the new remuneration scheme (Resolution SE No. 19-E /17), the Maintenance Remuneration was discontinued and it was defined that the balance of the financing will be repayable through the discount of US $ 1 / MWh for the energy generated until its total cancellation. | |||||
Book value | $ 102 | ||||||
Regulatory 6 | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Instrument name | CAMMESA Mapro | CAMMESA Mapro | |||||
Company name | CPB | CPB | |||||
Residual value | $ 1,211 | ||||||
Interest | Variable | Variable | |||||
Rate | CAMMESA | CAMMESA | |||||
Expiration | Corresponds to the mutual contracts entered into with CAMMESA to finance major maintenance works related to the different generation units approved by the SE. The financing will be amortized in 36 monthly and consecutive installments as from the completion of the works, this term could be extended by 12 months. Maintenance Remuneration will be used to cancel the financing granted. As a result of the entry into force of the new remuneration scheme (Resolution SE No. 19-E /17), the Maintenance Remuneration was discontinued and it was defined that the balance of the financing will be repayable through the discount of US $ 1 / MWh for the energy generated until its total cancellation. | Corresponds to the mutual contracts entered into with CAMMESA to finance major maintenance works related to the different generation units approved by the SE. The financing will be amortized in 36 monthly and consecutive installments as from the completion of the works, this term could be extended by 12 months. Maintenance Remuneration will be used to cancel the financing granted. As a result of the entry into force of the new remuneration scheme (Resolution SE No. 19-E /17), the Maintenance Remuneration was discontinued and it was defined that the balance of the financing will be repayable through the discount of US $ 1 / MWh for the energy generated until its total cancellation. | |||||
Book value | $ 1,199 | ||||||
Syndicated loans 1 | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Company name | PAMPA | PAMPA | |||||
Residual value | $ 993 | ||||||
Amount repurchased | $ 0 | ||||||
Interest | Fixed | Fixed | |||||
Rate | 28% | 28% | |||||
Expiration | 7/26/2017 | 7/26/2017 | |||||
Book value | $ 999 | ||||||
Syndicated loans 2 | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Company name | PAMPA | PAMPA | |||||
Residual value | $ 963 | ||||||
Amount repurchased | $ 0 | ||||||
Interest | Variable | Variable | |||||
Rate | Badcor + 3% | Badcor + 3% | |||||
Expiration | 7/26/2017 | 7/26/2017 | |||||
Book value | $ 970 | ||||||
Syndicated loans 3 | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Company name | PAMPA | PAMPA | |||||
Residual value | 141 | ||||||
Amount repurchased | $ 0 | ||||||
Interest | Variable | Variable | |||||
Rate | Libor + 7% | Libor + 7% | |||||
Expiration | 7/26/2017 | 7/26/2017 | |||||
Book value | $ 2,236 | ||||||
Syndicated loans 4 | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Company name | PAMPA | PAMPA | |||||
Residual value | $ 142 | ||||||
Amount repurchased | $ 0 | ||||||
Interest | Fixed | Fixed | |||||
Rate | 30% | 30% | |||||
Expiration | 2/26/2019 | 2/26/2019 | |||||
Book value | $ 142 | ||||||
Financial loans 1 | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Company name | PAMPA | ||||||
Residual value | 352 | ||||||
Interest | Fixed | ||||||
Rate | Between 2,9% and 7,5% | ||||||
Expiration | Feb-2018 to May-2021 | ||||||
Book value | $ 6,628 | ||||||
Financial loans 2 | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Company name | PAMPA | ||||||
Residual value | 63 | ||||||
Interest | Variable | ||||||
Rate | 6% + Libor | ||||||
Expiration | Sep-2018 to May-2024 | ||||||
Book value | $ 1,164 | ||||||
Financial loans 3 | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Company name | PAMPA | ||||||
Residual value | $ 2,270 | ||||||
Interest | Fixed | ||||||
Rate | Between 22% y 22,25% | ||||||
Expiration | Aug-2018 to Oct-2019 | ||||||
Book value | $ 2,314 | ||||||
Financial loans 4 | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Company name | Edenor | ||||||
Residual value | $ 50 | ||||||
Interest | Fixed | ||||||
Rate | Libor + 4,27% | ||||||
Expiration | 10/11/2020 | ||||||
Book value | $ 941 | ||||||
Financial loans 5 | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Company name | PEPASA | PEPASA | |||||
Residual value | 153 | ||||||
Amount repurchased | $ 0 | ||||||
Interest | Fixed | Fixed | |||||
Rate | Between 5% and 8% | Between 5% and 8% | |||||
Expiration | Aug-2017 to Feb-2018 | Aug-2017 to Feb-2018 | |||||
Book value | 11,047 | $ 2,436 | |||||
Financial loans 6 | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Company name | PAMPA | PAMPA | |||||
Residual value | 25 | ||||||
Amount repurchased | $ 0 | ||||||
Interest | Fixed | Fixed | |||||
Rate | Between 2,9% and 7,5% | Between 2,9% and 7,5% | |||||
Expiration | Apr-2017 to Dec-2017 | Apr-2017 to Dec-2017 | |||||
Book value | $ 398 | ||||||
Financial loans 7 | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Company name | CTLL | CTLL | |||||
Residual value | 15 | ||||||
Amount repurchased | $ 0 | ||||||
Interest | Variable | Variable | |||||
Rate | Libor + 4,5% | Libor + 4,5% | |||||
Expiration | 9/26/2018 | 9/26/2018 | |||||
Book value | $ 239 | ||||||
Financial loans 8 | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Company name | CTLL | CTLL | |||||
Residual value | $ 19 | ||||||
Amount repurchased | $ 0 | ||||||
Interest | Fixed | Fixed | |||||
Rate | 8% | 8% | |||||
Expiration | 6/30/2018 | 6/30/2018 | |||||
Book value | $ 305 | ||||||
Financial loans 9 | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Company name | CTLL | CTLL | |||||
Residual value | $ 500 | ||||||
Amount repurchased | $ 0 | ||||||
Interest | Fixed | Fixed | |||||
Rate | 20% | 20% | |||||
Expiration | 11/11/2017 | 11/11/2017 | |||||
Book value | $ 505 | ||||||
Bank overdrafts | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Company name | PAMPA | PAMPA | |||||
Residual value | $ 0 | ||||||
Amount repurchased | 0 | ||||||
Book value | 846 | ||||||
Corporate bonds | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Book value | 28,521 | 14,441 | |||||
Regulatory | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Book value | $ 3,398 | 2,455 | |||||
Syndicated loans | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Book value | 4,347 | ||||||
Financial loans | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Book value | $ 3,883 | ||||||
[1] | On July 14, 2016, Petrobras issued the Series T Notes, for a total amount of US $ 500 million, part of which was used to cancel the Series S in its entirety, thus fulfilling the previous condition for the closing of the acquisition of PPSL. | ||||||
[2] | On January 24, 2017, the Company issued Class 1 Corporate Bonds for a face value of U$S 750 million with an issuance price of 99.136%. Funds derived from the issuance of these CBs will be destined to investing in physical assets located in Argentina; financing working capital in Argentina; refinancing liabilities and/or making capital contributions in controlled companies or affiliates to use funds for the above-mentioned purposes. |
20. BORROWINGS (Details 4)
20. BORROWINGS (Details 4) $ in Millions | 12 Months Ended |
Dec. 31, 2017ARS ($) | |
Disclosure of detailed information about borrowings [line items] | |
Total TGS loan | $ 324 |
Rights over arbitration proceedings | (109) |
Gain from discharge / cancellation of TGS loan | 215 |
Loan principal balance | |
Disclosure of detailed information about borrowings [line items] | |
Total TGS loan | 244 |
Interest and taxes | |
Disclosure of detailed information about borrowings [line items] | |
Total TGS loan | $ 80 |
20. BORROWINGS (Details Narrati
20. BORROWINGS (Details Narrative) - ARS ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Borrowings Details Narrative | ||
Fair value of non current borrowings on corporate bonds | $ 30,611 | $ 14,108 |
21. DEFERRED REVENUE (Details)
21. DEFERRED REVENUE (Details) - ARS ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
DisclosureOfDeferredRevenueLineItems [Line Items] | ||
Non current deferred revenue | $ 195 | $ 200 |
Current deferred revenue | 3 | 1 |
Costumer contributions not subject to repayment | ||
DisclosureOfDeferredRevenueLineItems [Line Items] | ||
Non current deferred revenue | 195 | 200 |
Current deferred revenue | $ 3 | $ 1 |
22. SALARIES AND SOCIAL SECU152
22. SALARIES AND SOCIAL SECURITY PAYABLE (Details) - ARS ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
DisclosureOfSalariesAndSocialSecurityPayableLineItems [Line Items] | ||
Non current salaries and social security payable | $ 120 | $ 94 |
Current salaries and social security payable | 2,154 | 1,745 |
Seniority - based bonus | ||
DisclosureOfSalariesAndSocialSecurityPayableLineItems [Line Items] | ||
Non current salaries and social security payable | 116 | 89 |
Early retirements payable | ||
DisclosureOfSalariesAndSocialSecurityPayableLineItems [Line Items] | ||
Non current salaries and social security payable | 4 | 5 |
Current salaries and social security payable | 5 | 4 |
Salaries and social security contributions | ||
DisclosureOfSalariesAndSocialSecurityPayableLineItems [Line Items] | ||
Current salaries and social security payable | 579 | 419 |
Provision for vacations | ||
DisclosureOfSalariesAndSocialSecurityPayableLineItems [Line Items] | ||
Current salaries and social security payable | 671 | 617 |
Provision for gratifications and annual bonus for efficiency | ||
DisclosureOfSalariesAndSocialSecurityPayableLineItems [Line Items] | ||
Current salaries and social security payable | $ 899 | $ 705 |
23. INCOME TAX AND MINIMUM P153
23. INCOME TAX AND MINIMUM PRESUME TAX LIABILITY (Details) - ARS ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
DisclosureOfIncomeTaxAndMinimumPresumeTaxLiabilityLineItems [Line Items] | ||
Non current income tax and minimum notional income tax provision | $ 863 | $ 934 |
Current income tax and minimum notional income tax provision | 943 | 1,454 |
Income tax, net of witholdings and advances | ||
DisclosureOfIncomeTaxAndMinimumPresumeTaxLiabilityLineItems [Line Items] | ||
Non current income tax and minimum notional income tax provision | 848 | 837 |
Current income tax and minimum notional income tax provision | 880 | 1,451 |
Minimum notional income tax, net of witholdings and advances | ||
DisclosureOfIncomeTaxAndMinimumPresumeTaxLiabilityLineItems [Line Items] | ||
Non current income tax and minimum notional income tax provision | 15 | 97 |
Current income tax and minimum notional income tax provision | $ 63 | $ 3 |
24. DEFINED BENEFITS PLANS (Det
24. DEFINED BENEFITS PLANS (Details) - ARS ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||||
Disclosure of net defined benefit liability (asset) [line items] | ||||||
Liabilities, beginning | $ 1,033 | $ 310 | ||||
Items classified in profit or loss | ||||||
Current services cost | 58 | [1] | 42 | [2] | ||
Cost for interest | 257 | [1] | 195 | [2] | ||
Cost for past service | [1] | 28 | ||||
Items classified in other comprehensive income | ||||||
Actuarial losses (gains) | (11) | [3] | 78 | [4] | ||
Benefit payments | (98) | (74) | ||||
Exchange differences on translation | 16 | 0 | ||||
Contributions paid | (7) | (2) | ||||
Increase for subsidiaries acquisition | 484 | |||||
Reclassification to liabilities associated to assets classified as held for sale | (163) | |||||
Liabilities, ending | 1,113 | 1,033 | $ 310 | |||
Present value of the obligation | ||||||
Disclosure of net defined benefit liability (asset) [line items] | ||||||
Liabilities, beginning | 1,188 | 310 | 223 | |||
Items classified in profit or loss | ||||||
Current services cost | 58 | 42 | 36 | |||
Cost for interest | 280 | 208 | 86 | |||
Cost for past service | 28 | |||||
Items classified in other comprehensive income | ||||||
Actuarial losses (gains) | (21) | 73 | 1 | |||
Benefit payments | (105) | (76) | (36) | |||
Exchange differences on translation | 32 | 0 | ||||
Contributions paid | 0 | 0 | 0 | |||
Increase for subsidiaries acquisition | 631 | 0 | ||||
Reclassification to liabilities associated to assets classified as held for sale | (268) | |||||
Liabilities, ending | 1,192 | 1,188 | 310 | |||
Present value of assets | ||||||
Disclosure of net defined benefit liability (asset) [line items] | ||||||
Liabilities, beginning | (155) | 0 | ||||
Items classified in profit or loss | ||||||
Current services cost | 0 | 0 | ||||
Cost for interest | (23) | (13) | ||||
Cost for past service | 0 | |||||
Items classified in other comprehensive income | ||||||
Actuarial losses (gains) | 10 | 5 | ||||
Benefit payments | 7 | 2 | ||||
Exchange differences on translation | (16) | 0 | ||||
Contributions paid | (7) | (2) | ||||
Increase for subsidiaries acquisition | (147) | |||||
Reclassification to liabilities associated to assets classified as held for sale | 105 | |||||
Liabilities, ending | $ (79) | $ (155) | $ 0 | |||
[1] | Includes $ 25 million corresponding to discontinued operations. | |||||
[2] | Includes a loss of $ 5 million corresponding to discontinued operations for 2016. | |||||
[3] | Includes $ 10 million corresponding to discontinued operations. | |||||
[4] | Includes $ 9 million corresponding to discontinued operations for 2016. |
24. DEFINED BENEFITS PLANS (155
24. DEFINED BENEFITS PLANS (Details 1) $ in Millions | 12 Months Ended |
Dec. 31, 2017ARS ($) | |
Less than one year | |
Disclosure of defined benefit plans [line items] | |
Estimated expected benefits payment | $ 121 |
One to two years | |
Disclosure of defined benefit plans [line items] | |
Estimated expected benefits payment | 84 |
Two to three years | |
Disclosure of defined benefit plans [line items] | |
Estimated expected benefits payment | 74 |
Three to four years | |
Disclosure of defined benefit plans [line items] | |
Estimated expected benefits payment | 89 |
Four to five years | |
Disclosure of defined benefit plans [line items] | |
Estimated expected benefits payment | 81 |
Six to ten years | |
Disclosure of defined benefit plans [line items] | |
Estimated expected benefits payment | $ 377 |
24. DEFINED BENEFITS PLANS (156
24. DEFINED BENEFITS PLANS (Details 2) | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Defined Benefits Plans Details 2 | |||
Discount rate | 4.00% | 5.00% | 6.00% |
Salaries increase | 1.00% | 1.00% | 2.00% |
Average inflation | 15.00% | 21.00% | 32.00% |
24. DEFINED BENEFITS PLANS (157
24. DEFINED BENEFITS PLANS (Details 3) $ in Millions | 12 Months Ended |
Dec. 31, 2017ARS ($) | |
Discount rate: 4% | |
Disclosure of defined benefit plans [line items] | |
Obligation | $ 1,298 |
Variation | $ 106 |
Percentage of variation | 10.00% |
Discount rate: 6% | |
Disclosure of defined benefit plans [line items] | |
Obligation | $ 1,102 |
Variation | $ (90) |
Percentage of variation | (8.00%) |
Salaries increase: 0% | |
Disclosure of defined benefit plans [line items] | |
Obligation | $ 1,126 |
Variation | $ (66) |
Percentage of variation | (6.00%) |
Salaries increase: 2% | |
Disclosure of defined benefit plans [line items] | |
Obligation | $ 1,269 |
Variation | $ 77 |
Percentage of variation | 7.00% |
25. TAX LIABILITIES (Details)
25. TAX LIABILITIES (Details) - ARS ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
DisclosureOfTaxLiabilitiesLineItems [Line Items] | ||
Taxes payables, non current | $ 366 | $ 306 |
Taxes payables, current | 1,965 | 2,392 |
Value added tax | ||
DisclosureOfTaxLiabilitiesLineItems [Line Items] | ||
Taxes payables, non current | 219 | 287 |
Taxes payables, current | 526 | 840 |
Sales tax | ||
DisclosureOfTaxLiabilitiesLineItems [Line Items] | ||
Taxes payables, non current | 17 | 9 |
Taxes payables, current | 0 | 14 |
Payment plans | ||
DisclosureOfTaxLiabilitiesLineItems [Line Items] | ||
Taxes payables, non current | 130 | 10 |
Taxes payables, current | 61 | 3 |
Municipal, provincial and national contributions | ||
DisclosureOfTaxLiabilitiesLineItems [Line Items] | ||
Taxes payables, current | 398 | 377 |
Municipal taxes | ||
DisclosureOfTaxLiabilitiesLineItems [Line Items] | ||
Taxes payables, current | 69 | 58 |
Tax withholdings to be deposited | ||
DisclosureOfTaxLiabilitiesLineItems [Line Items] | ||
Taxes payables, current | 195 | 381 |
Stamp tax payable | ||
DisclosureOfTaxLiabilitiesLineItems [Line Items] | ||
Taxes payables, current | 10 | 10 |
Royalties | ||
DisclosureOfTaxLiabilitiesLineItems [Line Items] | ||
Taxes payables, current | 138 | 165 |
Extraordinary Canon | ||
DisclosureOfTaxLiabilitiesLineItems [Line Items] | ||
Taxes payables, current | 553 | 527 |
Other | ||
DisclosureOfTaxLiabilitiesLineItems [Line Items] | ||
Taxes payables, non current | 0 | |
Taxes payables, current | $ 15 | $ 17 |
26. PROVISIONS (Details)
26. PROVISIONS (Details) - ARS ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
DisclosureOfProvisionsLineItems [Line Items] | ||
Provisions, non current | $ 4,435 | $ 6,267 |
Provisions, current | 798 | 806 |
Provisions for contingencies | ||
DisclosureOfProvisionsLineItems [Line Items] | ||
Provisions, non current | 3,468 | 3,977 |
Provisions, current | 129 | 94 |
Asset retirement obligation | ||
DisclosureOfProvisionsLineItems [Line Items] | ||
Provisions, non current | 918 | 1,719 |
Provisions, current | 152 | 143 |
Environmental remediation | ||
DisclosureOfProvisionsLineItems [Line Items] | ||
Provisions, non current | 15 | 174 |
Provisions, current | 127 | 175 |
Onerous contract (Ship or pay) | ||
DisclosureOfProvisionsLineItems [Line Items] | ||
Provisions, non current | 0 | 366 |
Provisions, current | 389 | 394 |
Other provisions | ||
DisclosureOfProvisionsLineItems [Line Items] | ||
Provisions, non current | $ 34 | $ 31 |
26. PROVISIONS (Details 1)
26. PROVISIONS (Details 1) - ARS ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Provisions for contingencies | |||
DisclosureOfProvisionsLineItems [Line Items] | |||
Provisions, beginning | $ 4,071 | $ 335 | $ 141 |
Increases | 980 | 472 | 228 |
Reclassification | (209) | ||
Increases for purchases of subsidiaries | 3,333 | ||
Decreases | (881) | (69) | (34) |
Reclassification to liabilities associated with assets classified as held for sale | 0 | ||
Reversal of unused amounts | (364) | ||
Provisions, ending | 3,597 | 4,071 | 335 |
Asset retirement obligation | |||
DisclosureOfProvisionsLineItems [Line Items] | |||
Provisions, beginning | 1,862 | 49 | 3 |
Increases | 634 | 629 | 46 |
Reclassification | (16) | ||
Increases for purchases of subsidiaries | 1,210 | ||
Decreases | (166) | (26) | 0 |
Reclassification to liabilities associated with assets classified as held for sale | (875) | ||
Reversal of unused amounts | (369) | ||
Provisions, ending | 1,070 | 1,862 | 49 |
Environmental remediation | |||
DisclosureOfProvisionsLineItems [Line Items] | |||
Provisions, beginning | 349 | 0 | |
Increases | 98 | 210 | |
Reclassification | 16 | ||
Increases for purchases of subsidiaries | 235 | ||
Decreases | (135) | (96) | |
Reclassification to liabilities associated with assets classified as held for sale | (184) | ||
Reversal of unused amounts | (2) | ||
Provisions, ending | $ 142 | $ 349 | $ 0 |
27. REVENUE (Details)
27. REVENUE (Details) - ARS ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
DisclosureOfRevenueLineItems [Line Items] | |||
Revenue | $ 50,347 | $ 25,110 | $ 7,106 |
Generation | |||
DisclosureOfRevenueLineItems [Line Items] | |||
Revenue | 9,560 | 4,609 | 2,418 |
Generation | Sales of energy to the SPOT Market | |||
DisclosureOfRevenueLineItems [Line Items] | |||
Revenue | 5,546 | 2,411 | 1,050 |
Generation | Sales of energy by contract | |||
DisclosureOfRevenueLineItems [Line Items] | |||
Revenue | 3,965 | 2,187 | 1,357 |
Generation | Other sales | |||
DisclosureOfRevenueLineItems [Line Items] | |||
Revenue | 49 | 11 | 11 |
Distribution | |||
DisclosureOfRevenueLineItems [Line Items] | |||
Revenue | 24,339 | 13,079 | 3,802 |
Distribution | Other sales | |||
DisclosureOfRevenueLineItems [Line Items] | |||
Revenue | 0 | 9 | 0 |
Distribution | Energy sales | |||
DisclosureOfRevenueLineItems [Line Items] | |||
Revenue | 24,170 | 12,952 | 3,721 |
Distribution | Right of use of poles | |||
DisclosureOfRevenueLineItems [Line Items] | |||
Revenue | 131 | 99 | 76 |
Distribution | Connection and reconnection charges | |||
DisclosureOfRevenueLineItems [Line Items] | |||
Revenue | 38 | 19 | 5 |
Oil and gas | |||
DisclosureOfRevenueLineItems [Line Items] | |||
Revenue | 8,831 | 4,863 | 848 |
Oil and gas | Other sales | |||
DisclosureOfRevenueLineItems [Line Items] | |||
Revenue | 560 | 117 | 0 |
Oil and gas | Oil, Gas and liquid sales | |||
DisclosureOfRevenueLineItems [Line Items] | |||
Revenue | 8,271 | 4,746 | 848 |
Holding and others | |||
DisclosureOfRevenueLineItems [Line Items] | |||
Revenue | 388 | 52 | 38 |
Holding and others | Other sales | |||
DisclosureOfRevenueLineItems [Line Items] | |||
Revenue | 5 | 2 | 1 |
Holding and others | Administrative services sales | |||
DisclosureOfRevenueLineItems [Line Items] | |||
Revenue | 383 | 50 | 37 |
Petrochemicals | |||
DisclosureOfRevenueLineItems [Line Items] | |||
Revenue | 7,229 | 2,507 | 0 |
Petrochemicals | Petrochemicals sales | |||
DisclosureOfRevenueLineItems [Line Items] | |||
Revenue | $ 7,229 | $ 2,507 | $ 0 |
28. COST OF SALES (Details)
28. COST OF SALES (Details) - ARS ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
DisclosureOfCostOfSalesLineItems [Line Items] | ||||
Inventory, beginning | $ 3,360 | $ 225 | $ 136 | |
Charges for the year | 33,393 | 23,288 | 7,127 | |
Less: Inventories at the end of the year | (2,326) | (3,360) | (225) | |
Total cost of sales | 34,427 | 20,153 | 7,038 | |
Incorporation of inventories for acquisition of companies | ||||
DisclosureOfCostOfSalesLineItems [Line Items] | ||||
Charges for the year | 0 | 3,072 | 0 | |
Purchases of inventories, energy and gas | ||||
DisclosureOfCostOfSalesLineItems [Line Items] | ||||
Charges for the year | 19,649 | 9,110 | 2,496 | |
Salaries and social security charges | ||||
DisclosureOfCostOfSalesLineItems [Line Items] | ||||
Charges for the year | 4,659 | 3,450 | 2,196 | |
Benefits to the personnel | ||||
DisclosureOfCostOfSalesLineItems [Line Items] | ||||
Charges for the year | 164 | 77 | 36 | |
Accrual of defined benefit plans | ||||
DisclosureOfCostOfSalesLineItems [Line Items] | ||||
Charges for the year | 169 | 134 | 97 | |
Fees and compensation for services | ||||
DisclosureOfCostOfSalesLineItems [Line Items] | ||||
Charges for the year | 1,948 | 1,125 | 586 | |
Property, plant and equipment depreciations | ||||
DisclosureOfCostOfSalesLineItems [Line Items] | ||||
Charges for the year | 3,222 | 2,068 | 641 | |
Intangible assets amortization | ||||
DisclosureOfCostOfSalesLineItems [Line Items] | ||||
Charges for the year | 33 | 28 | 29 | |
Transport of energy | ||||
DisclosureOfCostOfSalesLineItems [Line Items] | ||||
Charges for the year | 79 | 11 | 16 | |
Consumption of materials | ||||
DisclosureOfCostOfSalesLineItems [Line Items] | ||||
Charges for the year | 645 | 390 | 297 | |
Penalties | ||||
DisclosureOfCostOfSalesLineItems [Line Items] | ||||
Charges for the year | [1] | 269 | 2,377 | 260 |
Maintenance | ||||
DisclosureOfCostOfSalesLineItems [Line Items] | ||||
Charges for the year | 422 | 366 | 128 | |
Canons and Royalties | ||||
DisclosureOfCostOfSalesLineItems [Line Items] | ||||
Charges for the year | 1,295 | 602 | 139 | |
Environmental control | ||||
DisclosureOfCostOfSalesLineItems [Line Items] | ||||
Charges for the year | 64 | 33 | 0 | |
Rental and insurance | ||||
DisclosureOfCostOfSalesLineItems [Line Items] | ||||
Charges for the year | 264 | 174 | 79 | |
Surveillance and security | ||||
DisclosureOfCostOfSalesLineItems [Line Items] | ||||
Charges for the year | 141 | 95 | 53 | |
Taxes, rates and contributions | ||||
DisclosureOfCostOfSalesLineItems [Line Items] | ||||
Charges for the year | 67 | 45 | 25 | |
Communications | ||||
DisclosureOfCostOfSalesLineItems [Line Items] | ||||
Charges for the year | 45 | 36 | 15 | |
Water consumption | ||||
DisclosureOfCostOfSalesLineItems [Line Items] | ||||
Charges for the year | 25 | 14 | 9 | |
Other | ||||
DisclosureOfCostOfSalesLineItems [Line Items] | ||||
Charges for the year | $ 233 | $ 81 | $ 25 | |
[1] | Includes $ 414 million of recover by penalties (Note 2.3) |
29. SELLING EXPENSES (Details)
29. SELLING EXPENSES (Details) - ARS ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
DisclosureOfSellingExpensesLineItems [Line Items] | |||
Selling expenses | $ 2,904 | $ 2,132 | $ 973 |
Salaries and social security charges | |||
DisclosureOfSellingExpensesLineItems [Line Items] | |||
Selling expenses | 618 | 482 | 311 |
Accrual of defined benefit plans | |||
DisclosureOfSellingExpensesLineItems [Line Items] | |||
Selling expenses | 14 | 13 | 12 |
Fees and compensation for services | |||
DisclosureOfSellingExpensesLineItems [Line Items] | |||
Selling expenses | 593 | 496 | 33 |
Compensation agreements | |||
DisclosureOfSellingExpensesLineItems [Line Items] | |||
Selling expenses | 132 | 157 | 74 |
Property, plant and equipment depreciations | |||
DisclosureOfSellingExpensesLineItems [Line Items] | |||
Selling expenses | 56 | 50 | 35 |
Taxes, rates and contributions | |||
DisclosureOfSellingExpensesLineItems [Line Items] | |||
Selling expenses | 696 | 343 | 95 |
Communications | |||
DisclosureOfSellingExpensesLineItems [Line Items] | |||
Selling expenses | 177 | 129 | 59 |
Penalties | |||
DisclosureOfSellingExpensesLineItems [Line Items] | |||
Selling expenses | 266 | 182 | 24 |
Doubtful accounts | |||
DisclosureOfSellingExpensesLineItems [Line Items] | |||
Selling expenses | 254 | 235 | 27 |
Transport | |||
DisclosureOfSellingExpensesLineItems [Line Items] | |||
Selling expenses | 85 | 29 | 0 |
Other | |||
DisclosureOfSellingExpensesLineItems [Line Items] | |||
Selling expenses | $ 13 | $ 16 | $ 3 |
30. ADMINISTRATIVE EXPENSES (De
30. ADMINISTRATIVE EXPENSES (Details) - ARS ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
DisclosureOfAdministrativeExpensesLineItems [Line Items] | |||
Administrative expenses | $ 4,905 | $ 3,628 | $ 1,221 |
Salaries and social security charges | |||
DisclosureOfAdministrativeExpensesLineItems [Line Items] | |||
Administrative expenses | 1,953 | 1,517 | 527 |
Benefits to the personnel | |||
DisclosureOfAdministrativeExpensesLineItems [Line Items] | |||
Administrative expenses | 140 | 53 | 16 |
Accrual of defined benefit plans | |||
DisclosureOfAdministrativeExpensesLineItems [Line Items] | |||
Administrative expenses | 135 | 85 | 13 |
Fees and compensation for services | |||
DisclosureOfAdministrativeExpensesLineItems [Line Items] | |||
Administrative expenses | 1,338 | 1,222 | 294 |
Compensation agreements | |||
DisclosureOfAdministrativeExpensesLineItems [Line Items] | |||
Administrative expenses | 468 | 236 | 101 |
Directors' and Syndicates' fees | |||
DisclosureOfAdministrativeExpensesLineItems [Line Items] | |||
Administrative expenses | 95 | 65 | 44 |
Property, plant and equipment depreciations | |||
DisclosureOfAdministrativeExpensesLineItems [Line Items] | |||
Administrative expenses | 110 | 55 | 15 |
Consumption of materials | |||
DisclosureOfAdministrativeExpensesLineItems [Line Items] | |||
Administrative expenses | 61 | 38 | 23 |
Maintenance | |||
DisclosureOfAdministrativeExpensesLineItems [Line Items] | |||
Administrative expenses | 60 | 33 | 3 |
Transport and per diem | |||
DisclosureOfAdministrativeExpensesLineItems [Line Items] | |||
Administrative expenses | 44 | 25 | 6 |
Rental and insurance | |||
DisclosureOfAdministrativeExpensesLineItems [Line Items] | |||
Administrative expenses | 138 | 115 | 77 |
Surveillance and security | |||
DisclosureOfAdministrativeExpensesLineItems [Line Items] | |||
Administrative expenses | 94 | 51 | 26 |
Taxes, rates and contributions | |||
DisclosureOfAdministrativeExpensesLineItems [Line Items] | |||
Administrative expenses | 102 | 37 | 45 |
Communications | |||
DisclosureOfAdministrativeExpensesLineItems [Line Items] | |||
Administrative expenses | 48 | 30 | 9 |
Advertising and promotion | |||
DisclosureOfAdministrativeExpensesLineItems [Line Items] | |||
Administrative expenses | 56 | 29 | 1 |
Other | |||
DisclosureOfAdministrativeExpensesLineItems [Line Items] | |||
Administrative expenses | $ 63 | $ 37 | $ 21 |
31. EXPLORATION EXPENSES (Detai
31. EXPLORATION EXPENSES (Details) - ARS ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
DisclosureOfExplorationExpensesLineItems [Line Items] | |||
Exploration expenses | $ 44 | $ 94 | $ 3 |
Geological and geophysical expenses | |||
DisclosureOfExplorationExpensesLineItems [Line Items] | |||
Exploration expenses | 17 | 18 | 0 |
Decrease in abandoned and unproductive wells | |||
DisclosureOfExplorationExpensesLineItems [Line Items] | |||
Exploration expenses | $ 27 | $ 76 | $ 3 |
32. OTHER OPERATING INCOME A166
32. OTHER OPERATING INCOME AND EXPENSES (Details) - ARS ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
DisclosureOfOtherOperatingIncomeAndExpensesLineItems [Line Items] | |||
Other operating income | $ 3,388 | $ 4,164 | $ 6,517 |
Other operating expenses | (2,951) | (1,876) | (769) |
Provision for contingencies | |||
DisclosureOfOtherOperatingIncomeAndExpensesLineItems [Line Items] | |||
Other operating expenses | (881) | (455) | (228) |
Decrease in property, plant and equipment | |||
DisclosureOfOtherOperatingIncomeAndExpensesLineItems [Line Items] | |||
Other operating expenses | (15) | (51) | (6) |
Allowance for uncollectible tax credits | |||
DisclosureOfOtherOperatingIncomeAndExpensesLineItems [Line Items] | |||
Other operating expenses | (14) | (29) | (95) |
Net expense for technical functions | |||
DisclosureOfOtherOperatingIncomeAndExpensesLineItems [Line Items] | |||
Other operating expenses | 0 | (18) | (13) |
Tax on bank transactions | |||
DisclosureOfOtherOperatingIncomeAndExpensesLineItems [Line Items] | |||
Other operating expenses | (817) | (473) | (176) |
Other expenses FOCEDE | |||
DisclosureOfOtherOperatingIncomeAndExpensesLineItems [Line Items] | |||
Other operating expenses | 0 | (15) | (60) |
Cost for services provided to third parties | |||
DisclosureOfOtherOperatingIncomeAndExpensesLineItems [Line Items] | |||
Other operating expenses | (39) | (32) | (52) |
Compensation agreements | |||
DisclosureOfOtherOperatingIncomeAndExpensesLineItems [Line Items] | |||
Other operating expenses | (45) | (109) | (48) |
Donations and contributions | |||
DisclosureOfOtherOperatingIncomeAndExpensesLineItems [Line Items] | |||
Other operating expenses | (38) | (17) | (7) |
Institutional relationships | |||
DisclosureOfOtherOperatingIncomeAndExpensesLineItems [Line Items] | |||
Other operating expenses | (65) | (44) | (18) |
Extraordinary Canon | |||
DisclosureOfOtherOperatingIncomeAndExpensesLineItems [Line Items] | |||
Other operating expenses | (314) | (366) | 0 |
Contingent consideration | |||
DisclosureOfOtherOperatingIncomeAndExpensesLineItems [Line Items] | |||
Other operating expenses | (171) | 0 | 0 |
Onerous contract (Ship or pay) | |||
DisclosureOfOtherOperatingIncomeAndExpensesLineItems [Line Items] | |||
Other operating expenses | (90) | 0 | 0 |
Other | |||
DisclosureOfOtherOperatingIncomeAndExpensesLineItems [Line Items] | |||
Other operating expenses | (462) | (267) | (66) |
Recovery of expenses | |||
DisclosureOfOtherOperatingIncomeAndExpensesLineItems [Line Items] | |||
Other operating income | 1 | 48 | 7 |
Recovery of doubtful accounts | |||
DisclosureOfOtherOperatingIncomeAndExpensesLineItems [Line Items] | |||
Other operating income | 86 | 29 | 1 |
Surplus Gas Injection Compensation | |||
DisclosureOfOtherOperatingIncomeAndExpensesLineItems [Line Items] | |||
Other operating income | 2,340 | 2,037 | 547 |
Commissions on municipal tax collections | |||
DisclosureOfOtherOperatingIncomeAndExpensesLineItems [Line Items] | |||
Other operating income | 32 | 21 | 15 |
Services to third parties | |||
DisclosureOfOtherOperatingIncomeAndExpensesLineItems [Line Items] | |||
Other operating income | 190 | 109 | 54 |
Profit for property, plant and equipment sale | |||
DisclosureOfOtherOperatingIncomeAndExpensesLineItems [Line Items] | |||
Other operating income | 5 | 91 | 0 |
Dividends received | |||
DisclosureOfOtherOperatingIncomeAndExpensesLineItems [Line Items] | |||
Other operating income | 33 | 6 | 4 |
Recognition of income - provisional remedies Note MEyM No 2016-04484723 | |||
DisclosureOfOtherOperatingIncomeAndExpensesLineItems [Line Items] | |||
Other operating income | 0 | 1,126 | 0 |
Income recognition on account of the RTI - SE Res. No. 32/15 | |||
DisclosureOfOtherOperatingIncomeAndExpensesLineItems [Line Items] | |||
Other operating income | 0 | 419 | 5,025 |
Higher costs recognition - SE Res. No. 250/13 and subsequent Notes | |||
DisclosureOfOtherOperatingIncomeAndExpensesLineItems [Line Items] | |||
Other operating income | 0 | 82 | 551 |
Onerous contract (Ship or pay) | |||
DisclosureOfOtherOperatingIncomeAndExpensesLineItems [Line Items] | |||
Other operating income | 0 | 150 | 0 |
Reversal of contingencies provision | |||
DisclosureOfOtherOperatingIncomeAndExpensesLineItems [Line Items] | |||
Other operating income | 521 | 5 | 0 |
Gain from cancellation of TGS Loan | |||
DisclosureOfOtherOperatingIncomeAndExpensesLineItems [Line Items] | |||
Other operating income | 0 | 0 | 215 |
Other | |||
DisclosureOfOtherOperatingIncomeAndExpensesLineItems [Line Items] | |||
Other operating income | $ 180 | $ 41 | $ 98 |
33. FINANCIAL RESULTS (Details)
33. FINANCIAL RESULTS (Details) - ARS ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
DisclosureOfFinancialResultsLineItems [Line Items] | ||||
Finance income | $ 1,432 | $ 849 | $ 331 | |
Finance expenses | (5,112) | (4,277) | (1,257) | |
Other financial results | (2,266) | (80) | 1,719 | |
Total financial results, net | (5,946) | (3,508) | 793 | |
Commercial interest | ||||
DisclosureOfFinancialResultsLineItems [Line Items] | ||||
Finance income | 986 | 677 | 239 | |
Finance expenses | (1,030) | (1,021) | (194) | |
Financial interest | ||||
DisclosureOfFinancialResultsLineItems [Line Items] | ||||
Finance income | 334 | 67 | 61 | |
Finance expenses | [1] | (3,714) | (3,083) | (937) |
Other interest | ||||
DisclosureOfFinancialResultsLineItems [Line Items] | ||||
Finance income | 112 | 105 | 31 | |
Finance expenses | (5) | (3) | (2) | |
Fiscal interest | ||||
DisclosureOfFinancialResultsLineItems [Line Items] | ||||
Finance expenses | (260) | (76) | (75) | |
Taxes and bank commissions | ||||
DisclosureOfFinancialResultsLineItems [Line Items] | ||||
Finance expenses | (78) | (36) | (33) | |
Other financial expenses | ||||
DisclosureOfFinancialResultsLineItems [Line Items] | ||||
Finance expenses | (25) | (58) | (16) | |
Foreign currency exchange difference, net | ||||
DisclosureOfFinancialResultsLineItems [Line Items] | ||||
Other financial results | (3,558) | (1,099) | (566) | |
Result from repurchase of Corporate Bonds | ||||
DisclosureOfFinancialResultsLineItems [Line Items] | ||||
Other financial results | 0 | (4) | 10 | |
Changes in the fair value of financial instruments | ||||
DisclosureOfFinancialResultsLineItems [Line Items] | ||||
Other financial results | 1,471 | 1,120 | 2,271 | |
Discounted value measurement | ||||
DisclosureOfFinancialResultsLineItems [Line Items] | ||||
Other financial results | (144) | (65) | 23 | |
Asset retirement obligation | ||||
DisclosureOfFinancialResultsLineItems [Line Items] | ||||
Other financial results | (40) | (32) | (19) | |
Other financial results | ||||
DisclosureOfFinancialResultsLineItems [Line Items] | ||||
Other financial results | $ 2 | $ 0 | $ 0 | |
[1] | Net of $ 369 million, $ 419 million and $ 434 million capitalized in property, plant and equipment for the years ended December 31, 2017, 2016 and 2015, respectively. |
34. EARNING (LOSS) PER SHARE (D
34. EARNING (LOSS) PER SHARE (Details) - ARS ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Earning Loss Per Share Details | |||
Earning (loss) for continuing operations attributable to the equity holders of the Company | $ 4,623 | $ (93) | $ 3,065 |
Weighted average amount of outstanding shares, continuing operations | 1,971,000,000 | 1,736,000,000 | 1,347,000,000 |
Basic and diluted earnings (loss) per share for continuing operations | $ 2.3455 | $ (0.0536) | $ 2.2760 |
(Loss) Earning for discontinued operations attributable to the equity holders of the Company | $ (17) | $ 82 | $ 0 |
Weighted average amount of outstanding shares, discontinued operations | 1,971,000,000 | 1,736,000,000 | 1,347,000,000 |
Basic and diluted (loss) earnings per share for discontinued operations | $ (0.0086) | $ 0.0472 | $ .0000 |
Earning (loss) attributable to the equity holders of the Company | $ 4,606 | $ (11) | $ 3,065 |
Weighted average amount of outstanding shares | 1,971,000,000 | 1,736,000,000 | 1,347,000,000 |
Basic and diluted earnings (loss) per share | $ 2.3369 | $ (0.0063) | $ 2.2760 |
35. SEGMENT INFORMATION (Detail
35. SEGMENT INFORMATION (Details) - ARS ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of operating segments [line items] | |||
Revenue | $ 50,347 | $ 25,110 | $ 7,106 |
Intersegment sales | 0 | 0 | 0 |
Cost of sales | (34,427) | (20,153) | (7,038) |
Gross profit (loss) | 15,920 | 4,957 | 68 |
Selling expenses | (2,904) | (2,132) | (973) |
Administrative expenses | (4,905) | (3,628) | (1,221) |
Exploration expenses | (44) | (94) | (3) |
Other operating income | 3,388 | 4,164 | 6,517 |
Other operating expenses | (2,951) | (1,876) | (769) |
Reversal of impairment of property, plant and equipment | 461 | 0 | 25 |
Reversal of impairment of intangible assets | 82 | 0 | 0 |
Share of profit (loss) of joint ventures | 1,064 | 105 | 9 |
Share of profit (loss) in associates | 44 | 7 | (10) |
Income from the sale of subsidiaries and financial assets | 0 | 480 | 0 |
Operating income (loss) | 10,155 | 1,983 | 3,643 |
Finance income | 1,432 | 849 | 331 |
Finance costs | (5,112) | (4,277) | (1,257) |
Other financial results | (2,266) | (80) | 1,719 |
Financial results, net | (5,946) | (3,508) | 793 |
Profit (loss) before income tax | 4,209 | (1,525) | 4,436 |
Income tax and minimun notional income tax | 1,367 | 1,201 | (587) |
Profit (Loss) of the year from continuing operations | 5,576 | (324) | 3,849 |
Profit (loss) of the year from discontinued operations | 94 | 72 | 0 |
Profit (loss) of the year | 5,670 | (252) | 3,849 |
Depreciation and amortization | 3,421 | 2,201 | 720 |
Total profit (loss) of the year attributable to: | |||
Owners of the company | 4,606 | (11) | 3,065 |
Non - controlling interest | 1,064 | (241) | 784 |
Assets | 104,467 | 77,277 | 29,150 |
Liabilities | 84,355 | 63,203 | 20,769 |
Increases in property, plant and equipment | 14,989 | 8,440 | 6,248 |
Increases in intangible assets | 1,326 | ||
Generation | |||
Disclosure of operating segments [line items] | |||
Revenue | 9,560 | 4,609 | 2,418 |
Intersegment sales | 37 | 15 | 0 |
Cost of sales | (5,358) | (2,726) | (1,282) |
Gross profit (loss) | 4,239 | 1,898 | 1,136 |
Selling expenses | (94) | (65) | (24) |
Administrative expenses | (357) | (392) | (262) |
Exploration expenses | 0 | 0 | 0 |
Other operating income | 420 | 55 | 91 |
Other operating expenses | (149) | (104) | (79) |
Reversal of impairment of property, plant and equipment | 0 | 25 | |
Reversal of impairment of intangible assets | 0 | ||
Share of profit (loss) of joint ventures | (50) | 0 | 0 |
Share of profit (loss) in associates | 0 | 0 | 0 |
Income from the sale of subsidiaries and financial assets | 0 | ||
Operating income (loss) | 4,009 | 1,392 | 887 |
Finance income | 881 | 600 | 295 |
Finance costs | (932) | (750) | (358) |
Other financial results | 55 | 228 | (82) |
Financial results, net | 4 | 78 | (145) |
Profit (loss) before income tax | 4,013 | 1,470 | 742 |
Income tax and minimun notional income tax | 85 | (317) | (192) |
Profit (Loss) of the year from continuing operations | 4,098 | 1,153 | |
Profit (loss) of the year from discontinued operations | 0 | 0 | |
Profit (loss) of the year | 4,098 | 1,153 | 550 |
Depreciation and amortization | 845 | 378 | 149 |
Total profit (loss) of the year attributable to: | |||
Owners of the company | 3,890 | 1,045 | 497 |
Non - controlling interest | 208 | 108 | 53 |
Assets | 22,833 | 19,577 | 8,051 |
Liabilities | 7,635 | 8,632 | 5,956 |
Increases in property, plant and equipment | 6,277 | 2,378 | 1,516 |
Increases in intangible assets | 108 | ||
Distribution of energy | |||
Disclosure of operating segments [line items] | |||
Revenue | 24,339 | 13,079 | 3,802 |
Intersegment sales | 0 | 0 | 0 |
Cost of sales | (17,667) | (12,220) | (5,189) |
Gross profit (loss) | 6,672 | 859 | (1,387) |
Selling expenses | (2,079) | (1,618) | (833) |
Administrative expenses | (1,444) | (1,171) | (697) |
Exploration expenses | 0 | 0 | 0 |
Other operating income | 97 | 1,718 | 5,656 |
Other operating expenses | (758) | (465) | (599) |
Reversal of impairment of property, plant and equipment | 461 | 0 | |
Reversal of impairment of intangible assets | 82 | ||
Share of profit (loss) of joint ventures | 0 | 0 | 0 |
Share of profit (loss) in associates | 0 | 0 | 0 |
Income from the sale of subsidiaries and financial assets | 0 | ||
Operating income (loss) | 3,031 | (677) | 2,140 |
Finance income | 272 | 206 | 96 |
Finance costs | (1,595) | (1,645) | (577) |
Other financial results | (9) | (360) | (870) |
Financial results, net | (1,332) | (1,799) | (1,351) |
Profit (loss) before income tax | 1,699 | (2,476) | 789 |
Income tax and minimun notional income tax | (417) | 753 | (176) |
Profit (Loss) of the year from continuing operations | 1,282 | (1,723) | |
Profit (loss) of the year from discontinued operations | 0 | 0 | |
Profit (loss) of the year | 1,282 | (1,723) | 613 |
Depreciation and amortization | 443 | 364 | 295 |
Total profit (loss) of the year attributable to: | |||
Owners of the company | 951 | (1,147) | 59 |
Non - controlling interest | 331 | (576) | 554 |
Assets | 26,149 | 17,219 | 11,737 |
Liabilities | 24,460 | 18,856 | 11,673 |
Increases in property, plant and equipment | 4,137 | 2,703 | 2,518 |
Increases in intangible assets | 0 | ||
Oil and gas | |||
Disclosure of operating segments [line items] | |||
Revenue | 8,831 | 4,863 | 848 |
Intersegment sales | 1,810 | 716 | 96 |
Cost of sales | (6,581) | (3,737) | (660) |
Gross profit (loss) | 4,060 | 1,842 | 284 |
Selling expenses | (455) | (334) | (116) |
Administrative expenses | (975) | (632) | (150) |
Exploration expenses | (44) | (94) | (3) |
Other operating income | 2,522 | 1,892 | 552 |
Other operating expenses | (776) | (826) | (82) |
Reversal of impairment of property, plant and equipment | 0 | 0 | |
Reversal of impairment of intangible assets | 0 | ||
Share of profit (loss) of joint ventures | 0 | 0 | 0 |
Share of profit (loss) in associates | 44 | 11 | 0 |
Income from the sale of subsidiaries and financial assets | 0 | ||
Operating income (loss) | 4,376 | 1,859 | 485 |
Finance income | 96 | 103 | 1 |
Finance costs | (245) | (730) | (389) |
Other financial results | (193) | 22 | 419 |
Financial results, net | (342) | (605) | 31 |
Profit (loss) before income tax | 4,034 | 1,254 | 516 |
Income tax and minimun notional income tax | (389) | (305) | (164) |
Profit (Loss) of the year from continuing operations | 3,645 | 949 | |
Profit (loss) of the year from discontinued operations | 121 | (74) | |
Profit (loss) of the year | 3,766 | 875 | 352 |
Depreciation and amortization | 1,956 | 1,398 | 276 |
Total profit (loss) of the year attributable to: | |||
Owners of the company | 3,241 | 627 | 175 |
Non - controlling interest | 525 | 248 | 177 |
Assets | 22,116 | 19,414 | 3,970 |
Liabilities | 10,446 | 11,662 | 3,361 |
Increases in property, plant and equipment | 4,195 | 3,051 | 2,214 |
Increases in intangible assets | 994 | ||
Refinery and distribution | |||
Disclosure of operating segments [line items] | |||
Revenue | 0 | 0 | |
Intersegment sales | 0 | 0 | |
Cost of sales | 0 | 0 | |
Gross profit (loss) | 0 | 0 | |
Selling expenses | 0 | 0 | |
Administrative expenses | 0 | 0 | |
Exploration expenses | 0 | 0 | |
Other operating income | 0 | 0 | |
Other operating expenses | 0 | 0 | |
Reversal of impairment of property, plant and equipment | 0 | ||
Reversal of impairment of intangible assets | 0 | ||
Share of profit (loss) of joint ventures | 0 | 0 | |
Share of profit (loss) in associates | 0 | (1) | |
Income from the sale of subsidiaries and financial assets | 0 | ||
Operating income (loss) | 0 | (1) | |
Finance income | 0 | 0 | |
Finance costs | 0 | 0 | |
Other financial results | 0 | 0 | |
Financial results, net | 0 | 0 | |
Profit (loss) before income tax | 0 | (1) | |
Income tax and minimun notional income tax | 0 | 0 | |
Profit (Loss) of the year from continuing operations | 0 | (1) | |
Profit (loss) of the year from discontinued operations | (43) | 75 | |
Profit (loss) of the year | (43) | 74 | |
Depreciation and amortization | 0 | 0 | |
Total profit (loss) of the year attributable to: | |||
Owners of the company | (43) | 74 | |
Non - controlling interest | 0 | 0 | |
Assets | 5,887 | 6,259 | |
Liabilities | 3,599 | 3,267 | |
Increases in property, plant and equipment | 154 | 165 | |
Increases in intangible assets | 224 | ||
Petrochemicals | |||
Disclosure of operating segments [line items] | |||
Revenue | 7,229 | 2,507 | |
Intersegment sales | 0 | 0 | |
Cost of sales | (6,655) | (2,207) | |
Gross profit (loss) | 574 | 300 | |
Selling expenses | (290) | (110) | |
Administrative expenses | (74) | (15) | |
Exploration expenses | 0 | 0 | |
Other operating income | 64 | 0 | |
Other operating expenses | (571) | (263) | |
Reversal of impairment of property, plant and equipment | 0 | ||
Reversal of impairment of intangible assets | 0 | ||
Share of profit (loss) of joint ventures | 0 | 0 | |
Share of profit (loss) in associates | 0 | 0 | |
Income from the sale of subsidiaries and financial assets | 0 | ||
Operating income (loss) | (297) | (88) | |
Finance income | 10 | 2 | |
Finance costs | 0 | 0 | |
Other financial results | 11 | (3) | |
Financial results, net | 21 | (1) | |
Profit (loss) before income tax | (276) | (89) | |
Income tax and minimun notional income tax | 0 | 0 | |
Profit (Loss) of the year from continuing operations | (276) | (89) | |
Profit (loss) of the year from discontinued operations | 0 | 0 | |
Profit (loss) of the year | (276) | (89) | |
Depreciation and amortization | 117 | 35 | |
Total profit (loss) of the year attributable to: | |||
Owners of the company | (276) | (89) | |
Non - controlling interest | 0 | 0 | |
Assets | 3,161 | 2,812 | |
Liabilities | 2,406 | 2,401 | |
Increases in property, plant and equipment | 110 | 58 | |
Increases in intangible assets | 0 | ||
Holding and others | |||
Disclosure of operating segments [line items] | |||
Revenue | 388 | 52 | 38 |
Intersegment sales | 36 | 28 | 16 |
Cost of sales | (3) | (3) | (3) |
Gross profit (loss) | 421 | 77 | 51 |
Selling expenses | 0 | (5) | 0 |
Administrative expenses | (2,095) | (1,446) | (128) |
Exploration expenses | 0 | 0 | 0 |
Other operating income | 289 | 560 | 218 |
Other operating expenses | (697) | (282) | (9) |
Reversal of impairment of property, plant and equipment | 0 | 0 | |
Reversal of impairment of intangible assets | 0 | ||
Share of profit (loss) of joint ventures | 1,114 | 105 | 9 |
Share of profit (loss) in associates | 0 | (3) | (10) |
Income from the sale of subsidiaries and financial assets | 480 | ||
Operating income (loss) | (968) | (514) | 131 |
Finance income | 214 | 105 | 26 |
Finance costs | (2,381) | (1,320) | (20) |
Other financial results | (2,130) | 35 | 2,252 |
Financial results, net | (4,297) | (1,180) | 2,258 |
Profit (loss) before income tax | (5,265) | (1,694) | 2,389 |
Income tax and minimun notional income tax | 2,088 | 1,070 | (55) |
Profit (Loss) of the year from continuing operations | (3,177) | (624) | |
Profit (loss) of the year from discontinued operations | 0 | 0 | |
Profit (loss) of the year | (3,177) | (624) | 2,334 |
Depreciation and amortization | 60 | 26 | 0 |
Total profit (loss) of the year attributable to: | |||
Owners of the company | (3,177) | (603) | 2,334 |
Non - controlling interest | 0 | (21) | 0 |
Assets | 29,449 | 19,494 | 6,563 |
Liabilities | 40,948 | 25,883 | 950 |
Increases in property, plant and equipment | 116 | 85 | 0 |
Increases in intangible assets | 0 | ||
Eliminations | |||
Disclosure of operating segments [line items] | |||
Revenue | 0 | 0 | 0 |
Intersegment sales | (1,883) | (759) | (112) |
Cost of sales | 1,837 | 740 | 96 |
Gross profit (loss) | (46) | (19) | (16) |
Selling expenses | 14 | 0 | 0 |
Administrative expenses | 40 | 28 | 16 |
Exploration expenses | 0 | 0 | 0 |
Other operating income | (4) | (61) | 0 |
Other operating expenses | 0 | 64 | 0 |
Reversal of impairment of property, plant and equipment | 0 | 0 | |
Reversal of impairment of intangible assets | 0 | ||
Share of profit (loss) of joint ventures | 0 | 0 | 0 |
Share of profit (loss) in associates | 0 | 0 | 0 |
Income from the sale of subsidiaries and financial assets | 0 | ||
Operating income (loss) | 4 | 12 | 0 |
Finance income | (41) | (167) | (87) |
Finance costs | 41 | 168 | 87 |
Other financial results | 0 | (2) | 0 |
Financial results, net | 0 | (1) | 0 |
Profit (loss) before income tax | 4 | 11 | 0 |
Income tax and minimun notional income tax | 0 | 0 | 0 |
Profit (Loss) of the year from continuing operations | 4 | 11 | |
Profit (loss) of the year from discontinued operations | 16 | 71 | |
Profit (loss) of the year | 20 | 82 | 0 |
Depreciation and amortization | 0 | 0 | 0 |
Total profit (loss) of the year attributable to: | |||
Owners of the company | 20 | 82 | 0 |
Non - controlling interest | 0 | 0 | 0 |
Assets | (5,128) | (7,498) | (1,171) |
Liabilities | (5,139) | (7,498) | (1,171) |
Increases in property, plant and equipment | $ 0 | 0 | $ 0 |
Increases in intangible assets | $ 0 |
36. RELATED PARTIES_ TRANSAC170
36. RELATED PARTIES´ TRANSACTIONS (Details) - ARS ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
CYCSA | ||||
Disclosure of transactions between related parties [line items] | ||||
Sales of goods and services | $ 0 | $ 14 | $ 2 | |
TGS | ||||
Disclosure of transactions between related parties [line items] | ||||
Sales of goods and services | [1] | 0 | 0 | 40 |
Refinor | ||||
Disclosure of transactions between related parties [line items] | ||||
Sales of goods and services | [2] | 126 | 45 | 0 |
Oldelval | ||||
Disclosure of transactions between related parties [line items] | ||||
Sales of goods and services | 4 | 1 | 0 | |
Total related parties | ||||
Disclosure of transactions between related parties [line items] | ||||
Sales of goods and services | 685 | 329 | 57 | |
Transener | ||||
Disclosure of transactions between related parties [line items] | ||||
Sales of goods and services | [3] | 28 | 15 | 15 |
TGS | ||||
Disclosure of transactions between related parties [line items] | ||||
Sales of goods and services | [1] | $ 527 | $ 254 | $ 0 |
[1] | Corresponds to advisory services in technical assistance and gas and refined products sales. | |||
[2] | Corresponds to oil sales. | |||
[3] | Corresponds to advisory services in technical assistance. |
36. RELATED PARTIES_ TRANSAC171
36. RELATED PARTIES´ TRANSACTIONS (Details 1) - ARS ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Origenes Vida | ||||
Disclosure of transactions between related parties [line items] | ||||
Purchases of goods and services | $ (13) | $ (6) | $ 0 | |
TGS | ||||
Disclosure of transactions between related parties [line items] | ||||
Purchases of goods and services | [1] | 0 | 0 | (3) |
Refinor | ||||
Disclosure of transactions between related parties [line items] | ||||
Purchases of goods and services | [2] | (393) | (117) | 0 |
Oldelval | ||||
Disclosure of transactions between related parties [line items] | ||||
Purchases of goods and services | [3] | (74) | (31) | 0 |
Total related parties | ||||
Disclosure of transactions between related parties [line items] | ||||
Purchases of goods and services | (731) | (331) | (35) | |
Transener | ||||
Disclosure of transactions between related parties [line items] | ||||
Purchases of goods and services | (7) | (10) | (5) | |
TGS | ||||
Disclosure of transactions between related parties [line items] | ||||
Purchases of goods and services | [1] | (197) | (132) | 0 |
SACME | ||||
Disclosure of transactions between related parties [line items] | ||||
Purchases of goods and services | $ (47) | $ (35) | $ (27) | |
[1] | Corresponds to natural gas transportation services. | |||
[2] | Corresponds to purchase of refined products. | |||
[3] | Corresponds to oil transportation services. |
36. RELATED PARTIES_ TRANSAC172
36. RELATED PARTIES´ TRANSACTIONS (Details 2) - ARS ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Salaverri, Dellatorre, Burgio & Wetzler | |||
Disclosure of transactions between related parties [line items] | |||
Fees for services | $ (16) | $ (23) | $ (1) |
Total related parties | |||
Disclosure of transactions between related parties [line items] | |||
Fees for services | $ (16) | $ (23) | $ (1) |
36. RELATED PARTIES_ TRANSAC173
36. RELATED PARTIES´ TRANSACTIONS (Details 3) - ARS ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of transactions between related parties [line items] | |||
Other operating income | $ 3,388 | $ 4,164 | $ 6,517 |
TGS | |||
Disclosure of transactions between related parties [line items] | |||
Other operating income | 0 | 0 | 215 |
CYCSA | |||
Disclosure of transactions between related parties [line items] | |||
Other operating income | 0 | 0 | 6 |
OCP | |||
Disclosure of transactions between related parties [line items] | |||
Other operating income | 0 | 150 | 0 |
Total related parties | |||
Disclosure of transactions between related parties [line items] | |||
Other operating income | $ 0 | $ 150 | $ 221 |
36. RELATED PARTIES_ TRANSAC174
36. RELATED PARTIES´ TRANSACTIONS (Details 4) - ARS ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Disclosure of transactions between related parties [line items] | ||||
Other operating expenses | $ 2,951 | $ 1,876 | $ 769 | |
OCP | ||||
Disclosure of transactions between related parties [line items] | ||||
Other operating expenses | [1] | (90) | 0 | 0 |
Foundation | ||||
Disclosure of transactions between related parties [line items] | ||||
Other operating expenses | [2] | (35) | (13) | (3) |
Total related parties | ||||
Disclosure of transactions between related parties [line items] | ||||
Other operating expenses | $ (125) | $ (13) | $ (3) | |
[1] | Corresponds to onerous contract (Ship or Pay). | |||
[2] | Corresponds to donations. |
36. RELATED PARTIES_ TRANSAC175
36. RELATED PARTIES´ TRANSACTIONS (Details 5) - ARS ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of transactions between related parties [line items] | |||
Finance income | $ 1,432 | $ 849 | $ 331 |
Total related parties | |||
Disclosure of transactions between related parties [line items] | |||
Finance income | 65 | 24 | 0 |
TGS | |||
Disclosure of transactions between related parties [line items] | |||
Finance income | $ 65 | $ 24 | $ 0 |
36. RELATED PARTIES_ TRANSAC176
36. RELATED PARTIES´ TRANSACTIONS (Details 6) - ARS ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Disclosure of transactions between related parties [line items] | ||||
Finance expenses | $ 5,112 | $ 4,277 | $ 1,257 | |
TGS | ||||
Disclosure of transactions between related parties [line items] | ||||
Finance expenses | 0 | 0 | (12) | |
Orígenes Retiro | ||||
Disclosure of transactions between related parties [line items] | ||||
Finance expenses | (6) | (7) | 0 | |
Grupo EMES | ||||
Disclosure of transactions between related parties [line items] | ||||
Finance expenses | [1] | 0 | (417) | 0 |
Total related parties | ||||
Disclosure of transactions between related parties [line items] | ||||
Finance expenses | $ (6) | $ (424) | $ (12) | |
[1] | Note 20 |
36. RELATED PARTIES_ TRANSAC177
36. RELATED PARTIES´ TRANSACTIONS (Details 7) - ARS ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Orígenes Retiro | |||
Disclosure of transactions between related parties [line items] | |||
Corporate bonds transactions, purchases | $ 0 | $ 666 | $ 0 |
Corporate bonds transactions, sales | 0 | 590 | 0 |
Total related parties | |||
Disclosure of transactions between related parties [line items] | |||
Corporate bonds transactions, purchases | 0 | 666 | 0 |
Corporate bonds transactions, sales | $ 0 | $ 590 | $ 0 |
36. RELATED PARTIES_ TRANSAC178
36. RELATED PARTIES´ TRANSACTIONS (Details 8) - ARS ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
CIESA | |||
Disclosure of transactions between related parties [line items] | |||
Dividends received | $ 0 | $ 4 | $ 0 |
Oldeval | |||
Disclosure of transactions between related parties [line items] | |||
Dividends received | 7 | 0 | 0 |
TJSM | |||
Disclosure of transactions between related parties [line items] | |||
Dividends received | 8 | 3 | 0 |
TMB | |||
Disclosure of transactions between related parties [line items] | |||
Dividends received | 10 | 3 | 0 |
Total related parties | |||
Disclosure of transactions between related parties [line items] | |||
Dividends received | $ 25 | $ 10 | $ 0 |
36. RELATED PARTIES_ TRANSAC179
36. RELATED PARTIES´ TRANSACTIONS (Details 9) - ARS ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
EMESA | |||
Disclosure of transactions between related parties [line items] | |||
Payment of dividends | $ (44) | $ (34) | $ 0 |
APCO Oil | |||
Disclosure of transactions between related parties [line items] | |||
Payment of dividends | (44) | (45) | 0 |
Ultracore | |||
Disclosure of transactions between related parties [line items] | |||
Payment of dividends | 0 | (3) | 0 |
Total related parties | |||
Disclosure of transactions between related parties [line items] | |||
Payment of dividends | $ (88) | $ (82) | $ 0 |
36. RELATED PARTIES_ TRANSAC180
36. RELATED PARTIES´ TRANSACTIONS (Details 10) - ARS ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of transactions between related parties [line items] | ||
Trade receivables, current | $ 12,259 | $ 8,904 |
Other receivables, non current | 2,168 | 2,177 |
Other receivables, current | 6,886 | 5,240 |
Trade payables, current | 18,052 | 12,867 |
Other payables, current | 1,408 | 1,001 |
Borrowings, non current | 37,126 | 15,286 |
Borrowings, current | 5,840 | 10,686 |
Provisions, non current | 4,435 | 6,267 |
Provisions, current | 798 | 806 |
Ultracore | ||
Disclosure of transactions between related parties [line items] | ||
Trade receivables, current | 0 | 0 |
Other receivables, non current | 0 | 0 |
Other receivables, current | 10 | 4 |
Refinor | ||
Disclosure of transactions between related parties [line items] | ||
Trade receivables, current | 10 | 6 |
Other receivables, non current | 0 | 0 |
Other receivables, current | 0 | 4 |
Trade payables, current | 53 | 32 |
Other payables, current | 0 | 0 |
Borrowings, non current | 0 | 0 |
Borrowings, current | 0 | 0 |
Provisions, non current | 0 | |
Provisions, current | 0 | 0 |
SACDE | ||
Disclosure of transactions between related parties [line items] | ||
Trade receivables, current | 25 | |
Other receivables, non current | 0 | |
Other receivables, current | 2 | |
Other | ||
Disclosure of transactions between related parties [line items] | ||
Trade receivables, current | 1 | 1 |
Other receivables, non current | 0 | 0 |
Other receivables, current | 1 | 1 |
Trade payables, current | 0 | 2 |
Other payables, current | 7 | 4 |
Borrowings, non current | 0 | 0 |
Borrowings, current | 0 | 0 |
Provisions, non current | 0 | |
Provisions, current | 0 | 0 |
Oldelval | ||
Disclosure of transactions between related parties [line items] | ||
Trade receivables, current | 1 | |
Other receivables, non current | 0 | |
Other receivables, current | 0 | |
Trade payables, current | 9 | 22 |
Other payables, current | 0 | 0 |
Borrowings, non current | 0 | 0 |
Borrowings, current | 0 | 0 |
Provisions, non current | 0 | |
Provisions, current | 0 | 0 |
Orígenes Seguro de vida | ||
Disclosure of transactions between related parties [line items] | ||
Trade payables, current | 0 | |
Other payables, current | 0 | |
Borrowings, non current | 0 | |
Borrowings, current | 2 | |
Provisions, current | 0 | |
Orígenes Retiro | ||
Disclosure of transactions between related parties [line items] | ||
Trade payables, current | 0 | 0 |
Other payables, current | 0 | 0 |
Borrowings, non current | 14 | 16 |
Borrowings, current | 2 | 21 |
Provisions, non current | 0 | |
Provisions, current | 0 | 0 |
OCP | ||
Disclosure of transactions between related parties [line items] | ||
Trade payables, current | 0 | 0 |
Other payables, current | 0 | 0 |
Borrowings, non current | 0 | 0 |
Borrowings, current | 0 | 0 |
Provisions, non current | 366 | |
Provisions, current | 389 | 394 |
UTE Apache | ||
Disclosure of transactions between related parties [line items] | ||
Trade payables, current | 0 | |
Other payables, current | 5 | |
Borrowings, non current | 0 | |
Borrowings, current | 0 | |
Provisions, non current | 0 | |
Provisions, current | 0 | |
Total related parties | ||
Disclosure of transactions between related parties [line items] | ||
Trade receivables, current | 170 | 108 |
Other receivables, non current | 794 | 740 |
Other receivables, current | 215 | 98 |
Trade payables, current | 80 | 181 |
Other payables, current | 12 | 14 |
Borrowings, non current | 14 | 16 |
Borrowings, current | 4 | 21 |
Provisions, non current | 366 | |
Provisions, current | 389 | 394 |
Transener | ||
Disclosure of transactions between related parties [line items] | ||
Trade receivables, current | 5 | 10 |
Other receivables, non current | 0 | 0 |
Other receivables, current | 0 | 0 |
Trade payables, current | 9 | |
Other payables, current | 0 | |
Borrowings, non current | 0 | |
Borrowings, current | 0 | |
Provisions, non current | 0 | |
Provisions, current | 0 | |
TGS | ||
Disclosure of transactions between related parties [line items] | ||
Trade receivables, current | 129 | 90 |
Other receivables, non current | 789 | 733 |
Other receivables, current | 75 | 88 |
Trade payables, current | 17 | 116 |
Other payables, current | 0 | 0 |
Borrowings, non current | 0 | 0 |
Borrowings, current | 0 | 0 |
Provisions, non current | 0 | |
Provisions, current | 0 | 0 |
Greenwind | ||
Disclosure of transactions between related parties [line items] | ||
Trade receivables, current | 0 | |
Other receivables, non current | 0 | |
Other receivables, current | 127 | |
SACME | ||
Disclosure of transactions between related parties [line items] | ||
Trade receivables, current | 0 | 0 |
Other receivables, non current | 5 | 7 |
Other receivables, current | 0 | 1 |
Trade payables, current | 0 | 0 |
Other payables, current | 5 | 5 |
Borrowings, non current | 0 | 0 |
Borrowings, current | 0 | 0 |
Provisions, non current | 0 | |
Provisions, current | $ 0 | $ 0 |
36. RELATED PARTIES_ TRANSAC181
36. RELATED PARTIES´ TRANSACTIONS (Details Narrative) - ARS ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Related Parties Transactions Details Narrative | ||
Total remuneration to executive directors | $ 740 | $ 567 |
37. FINANCIAL INSTRUMENTS (Deta
37. FINANCIAL INSTRUMENTS (Details) - ARS ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets at amortized cost | $ 22,336 | $ 18,998 |
Financial assets at fair value through profit and loss | 15,357 | 5,030 |
Subtotal financial assets | 37,693 | 24,028 |
Non financial assets | 2,085 | 1,031 |
Total assets | 39,778 | 25,059 |
Financial liabilities at amortized cost | 61,108 | 38,988 |
Financial liabilities at fair value through profit and loss | 1,967 | 1,347 |
Subtotal financial liabilities | 63,075 | 40,335 |
Non financial liabilities | 4,429 | 3,840 |
Total liabilities | 67,504 | 44,175 |
Trade and other liabilities | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities at amortized cost | 18,142 | 13,016 |
Financial liabilities at fair value through profit and loss | 1,885 | 1,347 |
Subtotal financial liabilities | 20,027 | 14,363 |
Non financial liabilities | 4,429 | 3,840 |
Total liabilities | 24,456 | 18,203 |
Borrowings | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities at amortized cost | 42,966 | 25,972 |
Financial liabilities at fair value through profit and loss | 0 | 0 |
Subtotal financial liabilities | 42,966 | 25,972 |
Non financial liabilities | 0 | 0 |
Total liabilities | 42,966 | 25,972 |
Derivative financial instruments | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities at amortized cost | 0 | |
Financial liabilities at fair value through profit and loss | 82 | |
Subtotal financial liabilities | 82 | |
Non financial liabilities | 0 | |
Total liabilities | 82 | |
Trade receivables and other receivables | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets at amortized cost | 21,512 | 17,553 |
Financial assets at fair value through profit and loss | 590 | 29 |
Subtotal financial assets | 22,102 | 17,582 |
Non financial assets | 2,085 | 1,031 |
Total assets | 24,187 | 18,613 |
Financial assets at amortized cost | Government securities | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets at amortized cost | 11 | 46 |
Financial assets at fair value through profit and loss | 0 | 0 |
Subtotal financial assets | 11 | 46 |
Non financial assets | 0 | 0 |
Total assets | 11 | 46 |
Financial assets at amortized cost | Corporate securities | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets at amortized cost | 1 | |
Financial assets at fair value through profit and loss | 0 | |
Subtotal financial assets | 1 | |
Non financial assets | 0 | |
Total assets | 1 | |
Financial assets at amortized cost | Trusts | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets at amortized cost | 14 | 38 |
Financial assets at fair value through profit and loss | 0 | 0 |
Subtotal financial assets | 14 | 38 |
Non financial assets | 0 | 0 |
Total assets | 14 | 38 |
Financial assets at fair value through profit and loss | Government securities | ||
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 | 5,024 | 1,576 |
Subtotal financial assets | 5,024 | 1,576 |
Non financial assets | 0 | 0 |
Total assets | 5,024 | 1,576 |
Financial assets at fair value through profit and loss | Corporate 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 | 12 | |
Subtotal financial assets | 12 | |
Non financial assets | 0 | |
Total assets | 12 | |
Financial assets at fair value through profit and loss | 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 | 150 | 150 |
Subtotal financial assets | 150 | 150 |
Non financial assets | 0 | 0 |
Total assets | 150 | 150 |
Financial assets at fair value through profit and loss | 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 | 9,589 | 3,189 |
Subtotal financial assets | 9,589 | 3,189 |
Non financial assets | 0 | 0 |
Total assets | 9,589 | 3,189 |
Derivative financial instruments | ||
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 | 4 | 13 |
Subtotal financial assets | 4 | 13 |
Non financial assets | 0 | 0 |
Total assets | 4 | 13 |
Cash and cash equivalents | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets at amortized cost | 799 | 1,360 |
Financial assets at fair value through profit and loss | 0 | 61 |
Subtotal financial assets | 799 | 1,421 |
Non financial assets | 0 | 0 |
Total assets | $ 799 | $ 1,421 |
37. FINANCIAL INSTRUMENTS (D183
37. FINANCIAL INSTRUMENTS (Details 1) - ARS ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of detailed information about financial instruments [line items] | |||
Interest income | $ 1,432 | $ 849 | $ 331 |
Interest expense | (5,009) | (4,183) | (1,208) |
Foreign exchange, net | (3,558) | (1,099) | (566) |
Results from financial instruments at fair value | 1,471 | 1,120 | 2,271 |
Other financial results | (282) | (195) | (35) |
Total | (5,946) | (3,508) | 793 |
Financial assets/liabilities at amortized cost | |||
Disclosure of detailed information about financial instruments [line items] | |||
Interest income | 1,277 | 845 | 327 |
Interest expense | (4,767) | (3,700) | (1,137) |
Foreign exchange, net | (4,353) | (1,369) | (1,027) |
Results from financial instruments at fair value | 0 | 0 | 0 |
Other financial results | (245) | (166) | (17) |
Total | (8,088) | (4,390) | (1,854) |
Financial assets/liabilities at fair value through profit and loss | |||
Disclosure of detailed information about financial instruments [line items] | |||
Interest income | 155 | 4 | 4 |
Interest expense | 0 | (417) | 0 |
Foreign exchange, net | 1,115 | 250 | 461 |
Results from financial instruments at fair value | 1,471 | 1,120 | 2,271 |
Other financial results | 0 | 3 | 1 |
Total | 2,741 | 960 | 2,737 |
Subtotal financial assets/liabilities | |||
Disclosure of detailed information about financial instruments [line items] | |||
Interest income | 1,432 | 849 | 331 |
Interest expense | (4,767) | (4,117) | (1,137) |
Foreign exchange, net | (3,238) | (1,119) | (566) |
Results from financial instruments at fair value | 1,471 | 1,120 | 2,271 |
Other financial results | (245) | (163) | (16) |
Total | (5,347) | (3,430) | 883 |
Non Financial assets/liabilities | |||
Disclosure of detailed information about financial instruments [line items] | |||
Interest income | 0 | 0 | 0 |
Interest expense | (242) | (66) | (71) |
Foreign exchange, net | (320) | 20 | 0 |
Results from financial instruments at fair value | 0 | 0 | 0 |
Other financial results | (37) | (32) | (19) |
Total | $ (599) | $ (78) | $ (90) |
38. CONTINGENCIES (Details Narr
38. CONTINGENCIES (Details Narrative) - ARS ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
DisclosureOfContingenciesLineItems [Line Items] | ||
Minimum notional income tax provision | $ 97 | $ 97 |
Edenor | ||
DisclosureOfContingenciesLineItems [Line Items] | ||
Legal proceedings provision | 0 | |
HIDISA, HINISA and CTG | ||
DisclosureOfContingenciesLineItems [Line Items] | ||
Legal proceedings provision | $ 843 |
39. LEASES (Details)
39. LEASES (Details) - ARS ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of finance lease and operating lease by lessee [line items] | |||
Total future minimum lease payments | $ 206 | $ 66 | $ 78 |
2,016 | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Total future minimum lease payments | 0 | 0 | 48 |
2,017 | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Total future minimum lease payments | 0 | 41 | 20 |
2,018 | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Total future minimum lease payments | 84 | 8 | 6 |
2,019 | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Total future minimum lease payments | 84 | 9 | 4 |
2,020 | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Total future minimum lease payments | 35 | 6 | 0 |
2,021 | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Total future minimum lease payments | $ 3 | $ 2 | $ 0 |
39. LEASES (Details 1)
39. LEASES (Details 1) - ARS ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of finance lease and operating lease by lessor [line items] | |||
Total future minimum lease collections | $ 405 | $ 321 | $ 176 |
2,016 | |||
Disclosure of finance lease and operating lease by lessor [line items] | |||
Total future minimum lease collections | 0 | 0 | 91 |
2,017 | |||
Disclosure of finance lease and operating lease by lessor [line items] | |||
Total future minimum lease collections | 137 | 109 | 85 |
2,018 | |||
Disclosure of finance lease and operating lease by lessor [line items] | |||
Total future minimum lease collections | 137 | 109 | 0 |
2,019 | |||
Disclosure of finance lease and operating lease by lessor [line items] | |||
Total future minimum lease collections | $ 131 | $ 103 | $ 0 |
39. LEASES (Details Narrative)
39. LEASES (Details Narrative) - ARS ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Leases Details Narrative | ||
Expenses for operating assignments of use | $ 85 | $ 68 |
Income from operating assignments of use | 131 | 108.2 |
Financial Lease Credit Included | $ 72 | $ 89 |
40. OPERATIONS IN HYDROCARBO188
40. OPERATIONS IN HYDROCARBON CONSORTIUMS (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Argentinian production 1 | |
Disclosure of joint operations [line items] | |
Joint operation name | 25 de Mayo - Medanito S.E. |
Location | Río Negro |
Direct participation | 100.00% |
Indirect participation | |
Operator name | PAMPA |
Duration Up To | 2,026 |
Argentinian production 2 | |
Disclosure of joint operations [line items] | |
Joint operation name | Jagüel de los Machos |
Location | Río Negro |
Direct participation | 100.00% |
Indirect participation | |
Operator name | PAMPA |
Duration Up To | 2,025 |
Argentinian production 3 | |
Disclosure of joint operations [line items] | |
Joint operation name | Bajada del Palo |
Location | Neuquén |
Direct participation | 3.85% |
Indirect participation | 43.07% |
Operator name | PELSA |
Duration Up To | 2,025 |
Argentinian production 4 | |
Disclosure of joint operations [line items] | |
Joint operation name | Río Neuquén |
Location | Río Negro and Neuquén |
Direct participation | 33.07% |
Indirect participation | |
Operator name | YPF |
Duration Up To | 2027/2051 |
Argentinian production 5 | |
Disclosure of joint operations [line items] | |
Joint operation name | Entre Lomas |
Location | Río Negro and Neuquén |
Direct participation | 3.85% |
Indirect participation | 43.07% |
Operator name | PELSA |
Duration Up To | 2,026 |
Argentinian production 6 | |
Disclosure of joint operations [line items] | |
Joint operation name | Sierra Chata |
Location | Neuquén |
Direct participation | 45.56% |
Indirect participation | |
Operator name | PAMPA |
Duration Up To | 2,023 |
Argentinian production 7 | |
Disclosure of joint operations [line items] | |
Joint operation name | El Mangrullo |
Location | Neuquén |
Direct participation | 100.00% |
Indirect participation | |
Operator name | PAMPA |
Duration Up To | 2,025 |
Argentinian production 8 | |
Disclosure of joint operations [line items] | |
Joint operation name | La Tapera - Puesto Quiroga |
Location | Chubut |
Direct participation | 35.67% |
Indirect participation | |
Operator name | Tecpetrol |
Duration Up To | 2,027 |
Argentinian production 9 | |
Disclosure of joint operations [line items] | |
Joint operation name | El Tordillo |
Location | Chubut |
Direct participation | 35.67% |
Indirect participation | |
Operator name | Tecpetrol |
Duration Up To | 2,027 |
Argentinian production 10 | |
Disclosure of joint operations [line items] | |
Joint operation name | Aguaragüe |
Location | Salta |
Direct participation | 15.00% |
Indirect participation | |
Operator name | Tecpetrol |
Duration Up To | 2023/2027 |
Argentinian production 11 | |
Disclosure of joint operations [line items] | |
Joint operation name | Gobernador Ayala |
Location | Mendoza |
Direct participation | 22.51% |
Indirect participation | |
Operator name | Pluspetrol |
Duration Up To | 2,036 |
Argentinian production 12 | |
Disclosure of joint operations [line items] | |
Joint operation name | Charco del Palenque - Jarilla Quemada |
Location | Río Negro |
Direct participation | 3.85% |
Indirect participation | 43.07% |
Operator name | PELSA |
Duration Up To | 2034/2040 |
Argentinian production 13 | |
Disclosure of joint operations [line items] | |
Joint operation name | Anticlinal |
Location | Neuquén |
Direct participation | 15.00% |
Indirect participation | |
Operator name | YPF |
Duration Up To | 2,026 |
Argentinian production 14 | |
Disclosure of joint operations [line items] | |
Joint operation name | Estación Fernández Oro |
Location | Río Negro |
Direct participation | 15.00% |
Indirect participation | |
Operator name | YPF |
Duration Up To | 2,026 |
Argentinian production 15 | |
Disclosure of joint operations [line items] | |
Joint operation name | Rincón del Mangrullo |
Location | Neuquén |
Direct participation | 50.00% |
Indirect participation | |
Operator name | YPF |
Duration Up To | 2,051 |
Argentinian production 16 | |
Disclosure of joint operations [line items] | |
Joint operation name | Senillosa |
Location | Neuquén |
Direct participation | 85.00% |
Indirect participation | |
Operator name | PAMPA |
Duration Up To | 2,040 |
Foreign 1 | |
Disclosure of joint operations [line items] | |
Joint operation name | Oritupano - Leona |
Location | Venezuela |
Direct participation | |
Indirect participation | 22.00% |
Operator name | PDVSA |
Duration Up To | 2,025 |
Foreign 2 | |
Disclosure of joint operations [line items] | |
Joint operation name | Acema |
Location | Venezuela |
Direct participation | |
Indirect participation | 34.49% |
Operator name | PDVSA |
Duration Up To | 2,025 |
Foreign 3 | |
Disclosure of joint operations [line items] | |
Joint operation name | La Concepción |
Location | Venezuela |
Direct participation | |
Indirect participation | 36.00% |
Operator name | PDVSA |
Duration Up To | 2,025 |
Foreign 4 | |
Disclosure of joint operations [line items] | |
Joint operation name | Mata |
Location | Venezuela |
Direct participation | |
Indirect participation | 34.49% |
Operator name | PDVSA |
Duration Up To | 2,025 |
Argentinian exploration 1 | |
Disclosure of joint operations [line items] | |
Joint operation name | Parva Negra Este |
Location | Neuquén |
Direct participation | 42.50% |
Indirect participation | |
Operator name | PAMPA |
Duration Up To | 2,018 |
Argentinian exploration 2 | |
Disclosure of joint operations [line items] | |
Joint operation name | Enarsa 1 (E1) |
Location | Argentine Continental Shelf |
Direct participation | 25.00% |
Indirect participation | |
Operator name | YPF |
Duration Up To | - |
Argentinian exploration 3 | |
Disclosure of joint operations [line items] | |
Joint operation name | Enarsa 3 (E3) |
Location | Argentine Continental Shelf |
Direct participation | 35.00% |
Indirect participation | |
Operator name | PAMPA |
Duration Up To | - |
Argentinian exploration 4 | |
Disclosure of joint operations [line items] | |
Joint operation name | Chirete |
Location | Salta |
Direct participation | 50.00% |
Indirect participation | |
Operator name | High Luck Group Limited |
Duration Up To | 2,017 |
Argentinian exploration 5 | |
Disclosure of joint operations [line items] | |
Joint operation name | Río Atuel |
Location | Mendoza |
Direct participation | 33.33% |
Indirect participation | |
Operator name | Tecpetrol |
Duration Up To | 2,018 |
Argentinian exploration 6 | |
Disclosure of joint operations [line items] | |
Joint operation name | Borde del Limay |
Location | Neuquén |
Direct participation | 85.00% |
Indirect participation | |
Operator name | PAMPA |
Duration Up To | 2,014 |
Argentinian exploration 7 | |
Disclosure of joint operations [line items] | |
Joint operation name | Los Vértices |
Location | Neuquén |
Direct participation | 85.00% |
Indirect participation | |
Operator name | PAMPA |
Duration Up To | 2,014 |
Argentinian exploration 8 | |
Disclosure of joint operations [line items] | |
Joint operation name | Veta Escondida y Rincón de Aranda |
Location | Neuquén |
Direct participation | 55.00% |
Indirect participation | |
Operator name | PAMPA |
Duration Up To | 2,027 |
40. OPERATIONS IN HYDROCARBO189
40. OPERATIONS IN HYDROCARBON CONSORTIUMS (Details 1) - ARS ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operations In Hydrocarbon Consortiums Details 1 | |||
Exploratory well costs, beginning | $ 274 | $ 113 | $ 30 |
Increase for subsidiaries acquisition | 0 | 227 | 0 |
Increases | 196 | 102 | 86 |
Transferred to development | (177) | (57) | 0 |
Loss of the year | (27) | (111) | (3) |
Exploratory well costs, ending | $ 266 | $ 274 | $ 113 |
Number of wells at the end of the year | 7 | 7 | 6 |
40. OPERATIONS IN HYDROCARBO190
40. OPERATIONS IN HYDROCARBON CONSORTIUMS (Details 2) | Dec. 31, 2017MBblsMMcm | |
Oil and LNG | ||
DisclosureOfProvedReservesLineItems [Line Items] | ||
Proved developed reserves | MBbls | 32,935 | [1] |
Proved undeveloped reserves | MBbls | 8,695 | [1] |
Proved reserves | MBbls | 41,630 | [1] |
Natural Gas | ||
DisclosureOfProvedReservesLineItems [Line Items] | ||
Proved developed reserves | MMcm | 12,646 | [2] |
Proved undeveloped reserves | MMcm | 8,667 | [2] |
Proved reserves | MMcm | 21,313 | [2] |
Argentina | Oil and LNG | ||
DisclosureOfProvedReservesLineItems [Line Items] | ||
Proved developed reserves | MBbls | 32,935 | [1] |
Proved undeveloped reserves | MBbls | 8,695 | [1] |
Proved reserves | MBbls | 41,630 | [1] |
Argentina | Natural Gas | ||
DisclosureOfProvedReservesLineItems [Line Items] | ||
Proved developed reserves | MMcm | 12,646 | [2] |
Proved undeveloped reserves | MMcm | 8,667 | [2] |
Proved reserves | MMcm | 21,313 | [2] |
[1] | In thousands of barrels. | |
[2] | In millions of cubic meters. |
41. ECONOMIC AND FINANCIAL S191
41. ECONOMIC AND FINANCIAL SITUATION OF GENERATION, TRANSMISSION AND ENERGY DISTRIBUTION SEGMENTS (Details Narrative) - ARS ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
DisclosureOfEconomicAndFinancialSituationOfGenerationTransmissionAndEnergyDistributionSegmentsLineItems [Line Items] | |||
Comprehensive loss | $ 6,175 | $ (55) | $ 3,849 |
Operating income | 10,155 | 1,983 | $ 3,643 |
CPB | |||
DisclosureOfEconomicAndFinancialSituationOfGenerationTransmissionAndEnergyDistributionSegmentsLineItems [Line Items] | |||
Comprehensive loss | (120) | $ (210) | |
Operating income | 252 | ||
Working capital | $ (375) |
42. OPERATIONS IN ECUADOR (Deta
42. OPERATIONS IN ECUADOR (Details Narrative) $ in Millions | Dec. 31, 2017ARS ($) |
Operations In Ecuador | |
Contractual Receivable in Ecuador | $ 998 |
45. COMPENSATION PLANS (Details
45. COMPENSATION PLANS (Details) | 12 Months Ended |
Dec. 31, 2017$ / sharesshares | |
Purchase option 1 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Expiration | Apr. 26, 2024 |
Price of the year | $ / shares | $ .27 |
Stock Options | shares | 111,500,000 |
Purchase option 2 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Expiration | Apr. 26, 2024 |
Price of the year | $ / shares | $ .27 |
Stock Options | shares | 150,000,000 |
Purchase option 3 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Expiration | Apr. 26, 2024 |
Price of the year | $ / shares | $ .27 |
Stock Options | shares | 120,048,564 |
45. COMPENSATION PLANS (Deta194
45. COMPENSATION PLANS (Details 1) | 12 Months Ended |
Dec. 31, 2015USD ($)shares | |
Compensation Plans Details 1 | |
Stock options outstanding, beginning | shares | 381,548,564 |
Stock options, executed | shares | (381,548,564) |
Stock options outstanding, ending | shares | 0 |
Average price options outstanding, beginning | $ | $ 0.27 |
Average price options, executed | $ | 0.27 |
Average price options outstanding, ending | $ | $ 0 |