Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2018shares | |
Document And Entity Information | |
Entity Registrant Name | Pampa Energy Inc. |
Entity Central Index Key | 0001469395 |
Document Type | 20-F |
Document Period End Date | Dec. 31, 2018 |
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 Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 1,874,434,580 |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2018 |
CONSOLIDATED STATEMENT OF COMPR
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - ARS ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of comprehensive income [abstract] | |||
Revenue | $ 110,080 | $ 82,008 | $ 51,262 |
Cost of sales | (74,161) | (59,339) | (42,851) |
Gross profit | 35,919 | 22,669 | 8,411 |
Selling expenses | (6,451) | (4,776) | (4,491) |
Administrative expenses | (7,751) | (7,481) | (7,511) |
Exploration expenses | (45) | (71) | (199) |
Other operating income | 6,842 | 5,608 | 8,390 |
Other operating expenses | (7,526) | (3,892) | (3,896) |
Impairment of property, plant, and equipment and intangible assets | (1,195) | 0 | 0 |
Share of profit (loss) from joint ventures and associates | 4,464 | 1,813 | 286 |
Income from the sale of associates | 1,052 | 0 | 1,015 |
Operating income | 25,309 | 13,870 | 2,005 |
Gain on net monetary position | 23,696 | 11,478 | 5,770 |
Finance income | 3,751 | 2,333 | 1,744 |
Finance costs | (11,944) | (8,750) | (8,154) |
Other financial results | (32,365) | (3,774) | 505 |
Financial results, net | (16,862) | 1,287 | (135) |
Profit before income tax | 8,447 | 15,157 | 1,870 |
Income tax | (658) | 985 | 1,603 |
Profit of the year from continuing operations | 7,789 | 16,142 | 3,473 |
Profit (loss) of the year from discontinued operations | 3,019 | (1,893) | 152 |
Profit (loss) for the year | 10,808 | 14,249 | 3,625 |
Other comprehensive income (loss) items that will not be reclassified to profit or loss | |||
Results related to defined benefit plans | (160) | (13) | (34) |
Income tax | 41 | 4 | 12 |
Share of loss from joint ventures | (19) | 0 | 0 |
Other comprehensive income (loss) Items that may be reclassified to profit or loss | |||
Exchange differences on translation | 19 | 111 | 7 |
Other comprehensive (loss) income of the year from continuing operations | (119) | 102 | (15) |
Other comprehensive income (loss) of the year from discontinued operations, net of tax | 312 | (533) | 135 |
Total other comprehensive income (loss) of the year | 193 | (431) | 120 |
Total comprehensive income (loss) of the year | 11,001 | 13,818 | 3,745 |
Total income (loss) of the year attributable to: | |||
Owners of the company | 8,435 | 10,799 | 2,875 |
Non - controlling interest | 2,373 | 3,450 | 750 |
Total income (loss) of the year | 10,808 | 14,249 | 3,625 |
Total income (loss) of the year attributable to owners of the company: | |||
Continuing operations | 5,506 | 12,867 | 2,702 |
Discontinued operations | 2,929 | (2,068) | 173 |
Total income (loss) of the year attributable to owners of the company | 8,435 | 10,799 | 2,875 |
Total comprehensive income (loss) of the year attributable to: | |||
Owners of the company | 8,474 | 10,588 | 2,877 |
Non - controlling interest | 2,527 | 3,230 | 868 |
Total comprehensive income (loss) of the year | 11,001 | 13,818 | 3,745 |
Total comprehensive income (loss) of the year attributable to owners of the company: | |||
Continuing operations | 5,297 | 12,940 | 2,555 |
Discontinued operations | 3,177 | (2,352) | 322 |
Total comprehensive income (loss) of the year attributable to owners of the company | $ 8,474 | $ 10,588 | $ 2,877 |
Earnings (losses) per share attributable to the equity holders of the company during the year | |||
Basic and diluted earnings (loss) per share from continuing operations | $ 2.8106 | $ 6.6462 | $ 1.5271 |
Basic and diluted (loss) earnings per share from discontinued operations | 1.4952 | (1.0682) | 0.1290 |
Total basic and diluted earnings (loss) per share | $ 4.3058 | $ 5.5780 | $ 1.6561 |
CONSOLIDATED STATEMENT OF FINAN
CONSOLIDATED STATEMENT OF FINANCIAL POSITION - ARS ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
NON CURRENT ASSETS | ||
Property, plant and equipment | $ 125,005 | $ 111,571 |
Intangible assets | 6,080 | 6,354 |
Deferred tax assets | 80 | 1,928 |
Investments in joint ventures and associates | 15,333 | 11,875 |
Financial assets at fair value through profit and loss | 422 | 286 |
Other assets | 33 | 9 |
Trade and other receivables | 9,521 | 7,444 |
Total non current assets | 156,474 | 139,467 |
CURRENT ASSETS | ||
Inventories | 5,169 | 4,266 |
Financial assets at amortized cost | 1,330 | 37 |
Financial assets at fair value through profit and loss | 15,273 | 21,576 |
Derivative financial instruments | 3 | 6 |
Trade and other receivables | 26,489 | 28,267 |
Cash and cash equivalents | 9,097 | 1,179 |
Total current assets | 57,361 | 55,331 |
Assets classified as held for sale | 0 | 18,457 |
Total assets | 213,835 | 213,255 |
SHAREHOLDERS' EQUITY | ||
Share capital | 1,874 | 2,080 |
Share capital adjustment | 9,826 | 10,906 |
Share premium | 18,499 | 18,496 |
Treasury shares | 25 | 2 |
Treasury shares cost | (1,490) | (126) |
Treasury shares adjustment | 134 | 13 |
Legal reserve | 904 | 733 |
Voluntary reserve | 7,355 | 12,554 |
Other reserves | (483) | 367 |
Retained earnings | 15,193 | 11,806 |
Other comprehensive income | (314) | (353) |
Equity attributable to owners of the company | 51,523 | 56,478 |
Non-controlling interest | 16,160 | 17,792 |
Total equity | 67,683 | 74,270 |
NON CURRENT LIABILITIES | ||
Investments in joint ventures and associates | 153 | 0 |
Provisions | 5,499 | 6,549 |
Income tax and minimum notional income tax provision | 1,034 | 1,274 |
Deferred revenue | 275 | 287 |
Taxes payables | 542 | 540 |
Deferred tax liabilities | 15,354 | 16,686 |
Defined benefit plans | 1,175 | 1,464 |
Salaries and social security payable | 163 | 177 |
Borrowings | 69,189 | 54,816 |
Trade and other payables | 8,162 | 9,457 |
Total non current liabilities | 101,546 | 91,250 |
CURRENT LIABILITIES | ||
Provisions | 871 | 1,179 |
Deferred revenue | 5 | 5 |
Income tax and minimum notional income tax provision | 1,084 | 1,392 |
Taxes payables | 2,052 | 2,901 |
Defined benefit plans | 162 | 179 |
Salaries and social security payable | 2,726 | 3,180 |
Derivative financial instruments | 49 | 122 |
Borrowings | 12,901 | 8,623 |
Trade and other payables | 24,756 | 26,655 |
Total current liabilities | 44,606 | 44,236 |
Liabilities associated to assets classified as held for sale | 0 | 3,499 |
Total liabilities | 146,152 | 138,985 |
Total liabilities and equity | $ 213,835 | $ 213,255 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY - ARS ($) $ in Millions | Share capital | Share capital adjustment | Share premium | Treasury shares | Treasury shares adjustment | Treasury shares cost | Legal reserve | Voluntary reserve | Other reserves | Other comprehensive income / (loss) for the year | Retained earnings (Accumulated losses) | Subtotal | Non-controlling interest | Total |
Beginning balance at Dec. 31, 2015 | $ 1,696 | $ 10,630 | $ 9,113 | $ 0 | $ 0 | $ 0 | $ 126 | $ 2,386 | $ 324 | $ (199) | $ 8,907 | $ 32,983 | $ 12,683 | $ 45,666 |
Constitution of legal reserve - Shareholders' meeting | 373 | (373) | 0 | |||||||||||
Constitution of voluntary reserve - Shareholders' meeting | 7,104 | (7,104) | 0 | |||||||||||
Acquisition of subsidiaries | 15,345 | 15,345 | ||||||||||||
Sale of interest in subsidiaries | 7 | 7 | 2 | 9 | ||||||||||
Dividends provided for pay | (160) | (160) | ||||||||||||
Recomposition of legal reserve - Shareholders' meeting | 68 | (68) | 0 | |||||||||||
Public offer for the acquisition of subsidiaries' shares | 141 | 121 | 2,576 | 2,838 | (7,912) | (5,074) | ||||||||
Acquisition of own shares | 0 | |||||||||||||
Merger with subsidiaries | 101 | 87 | 4,181 | 4,369 | (3,276) | 1,093 | ||||||||
Stock compensation plans | 2 | 2 | 20 | 22 | ||||||||||
Profit (loss) for the year | 2,875 | 2,875 | 750 | 3,625 | ||||||||||
Other comprehensive income for the year | 57 | 57 | 63 | 120 | ||||||||||
Ending balance at Dec. 31, 2016 | 1,938 | 10,838 | 15,870 | 0 | 0 | 0 | 567 | 9,422 | 333 | (142) | 4,305 | 43,131 | 17,515 | 60,646 |
Constitution of legal reserve - Shareholders' meeting | 166 | (166) | 0 | |||||||||||
Constitution of voluntary reserve - Shareholders' meeting | 3,132 | (3,132) | 0 | |||||||||||
Dividends provided for pay | (144) | (144) | ||||||||||||
Acquisition of own shares | (3) | (1) | 2 | 13 | (126) | (115) | (128) | |||||||
Merger with subsidiaries | 145 | 69 | 2,602 | 2,816 | (2,816) | 0 | ||||||||
Stock compensation plans | 24 | 34 | 58 | 7 | 65 | |||||||||
Profit (loss) for the year | 10,799 | 10,799 | 3,450 | 14,249 | ||||||||||
Other comprehensive income for the year | (211) | (211) | (220) | (431) | ||||||||||
Ending balance at Dec. 31, 2017 | 2,080 | 10,906 | 18,496 | 2 | 13 | (126) | 733 | 12,554 | 367 | (353) | 11,806 | 56,478 | 17,792 | 74,270 |
Change in accounting policies | (55) | (55) | (25) | (80) | ||||||||||
Beginning balance | 2,080 | 10,906 | 18,496 | 2 | 13 | (126) | 733 | 12,554 | 367 | (353) | 11,751 | 56,423 | 17,767 | 74,190 |
Constitution of legal reserve - Shareholders' meeting | 171 | (171) | 0 | |||||||||||
Constitution of voluntary reserve - Shareholders' meeting | 4,822 | (4,822) | 0 | |||||||||||
Sale of interest in subsidiaries | (3,518) | (3,518) | ||||||||||||
Dividends provided for pay | (82) | (82) | ||||||||||||
Acquisition of own shares | (206) | (1,080) | 206 | 1,080 | (12,535) | (864) | (13,399) | (534) | (13,938) | |||||
Capital reduction | (183) | (958) | 11,162 | (10,021) | 0 | |||||||||
Stock compensation plans | 3 | (1) | 9 | 14 | 25 | 25 | ||||||||
Profit (loss) for the year | 8,435 | 8,435 | 2,373 | 10,808 | ||||||||||
Other comprehensive income for the year | 39 | 39 | 154 | 193 | ||||||||||
Ending balance at Dec. 31, 2018 | $ 1,874 | $ 9,826 | $ 18,499 | $ 25 | $ 134 | $ (1,490) | $ 904 | $ 7,355 | $ (483) | $ (314) | $ 15,193 | $ 51,523 | $ 16,160 | $ 67,683 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS - ARS ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | |||
Profit of the year from continuing operations | $ 7,789 | $ 16,142 | $ 3,473 |
Profit (loss) of the year from discontinued operations | 3,019 | (1,893) | 152 |
Adjustments to reconcile net profit (loss) to cash flows generated by operating activities: | 23,553 | 5,784 | 4,186 |
Changes in operating assets and liabilities | (11,426) | (3,385) | 4,510 |
Net cash generated by operating activities | 22,935 | 16,648 | 12,321 |
Cash flows from investing activities: | |||
Payment for property, plant and equipment | (25,407) | (18,290) | (13,202) |
Payment for acquisitions of intangible assets | (6) | 0 | (468) |
Payment for financial assets | (110,026) | (19,247) | (61) |
Payment for companies' acquisitions | 0 | 0 | (17,414) |
Proceeds from property, plant and equipment sale | 87 | 0 | 2,191 |
Proceeds from financial assets at amortized cost | 108,848 | 15,129 | 7,717 |
Collections for sales of shares in companies and property, plant and equipment | 17,240 | 548 | 645 |
Dividends received | 735 | 40 | 135 |
(Proceeds) collection from loans | (167) | 38 | 13 |
(Subscription) recovery of investment funds, net | 9,436 | (8,259) | (227) |
Net cash used in investing activities from discontinued operations | 0 | (1,897) | (1,238) |
Net cash generated by (used in) investing activities | 740 | (31,938) | (21,909) |
Cash flows from financing activities: | |||
Proceeds from borrowings | 9,250 | 47,130 | 35,918 |
Payment of borrowings | (9,057) | (27,650) | (12,654) |
Payment of borrowings interests | (5,004) | (4,072) | (3,212) |
Payment for acquisition of own shares | (13,938) | (128) | 0 |
Payments of dividends from subsidiaries to third parties | (82) | (74) | (77) |
Repayment of own debt | (448) | (47) | (1,658) |
Payment for the public offer for the acquisiton of subsidiaries' shares | 0 | 0 | (6,005) |
Proceeds from sales of shares in subsidiaries | 0 | 0 | 6 |
Net cash generated by (used in) financing activities from discontinued operations | 1,565 | (1,168) | (1,726) |
Net cash (used in) generated by financing activities | (17,714) | 13,991 | 10,592 |
Increase (decrease) in cash and cash equivalents | 5,961 | (1,299) | 1,004 |
Cash and cash equivalents at the beginning of the year | 1,179 | 2,613 | 1,282 |
Cash and cash equivalents at the begining of the year reclasified to assets classified as held for sale | 238 | (238) | 0 |
Exchange difference generated by cash and cash equivalents | 2,011 | 509 | 601 |
Loss on net monetary position generated by cash and cash equivalents | (292) | (406) | (274) |
Increase (decrease) in cash and cash equivalents | 5,961 | (1,299) | 1,004 |
Cash and cash equivalents at the end of the year | $ 9,097 | $ 1,179 | $ 2,613 |
1. GENERAL INFORMATION AND GROU
1. GENERAL INFORMATION AND GROUP STRUCTURE | 12 Months Ended |
Dec. 31, 2018 | |
General Information And Group Structure | |
GENERAL INFORMATION AND GROUP STRUCTURE | 1.1 General information The Company is a fully integrated power company in Argentina, which directly and through its subsidiaries, participates in the electric energy and gas value chains. In the generation segment, the Company has a 3,871 MW installed capacity, which represents approximately 10% of Argentina’s installed capacity, and is the second largest independent generator in the country. Additionally, the Company is currently undergoing a process to expand its capacity by 504 MW. In the distribution segment, the Company has a controlling interest in Edenor, the largest electricity distributor in Argentina, which has more than 3 million customers and a concession area covering the Northern part of the City of Buenos Aires and Northwestern Greater Buenos Aires. In the oil and gas segment, the Company is one of the leading oil and natural gas producers in Argentina, with operations in 11 production areas and 7 exploratory areas and a production level of 6.8 million m3/day of natural gas and 5,100 barrels/day of oil equivalent for oil in Argentina, during the year 2018 due to continuing operations. Its main natural gas production blocks are located in the Provinces of Neuquén and Río Negro. Pursuant to the divestment mentioned in Note 5.2.1, the related results of operations and cash flows are disclosed within discontinued operations. The production level, due to discontinued operations, registered during the first quarter of 2018 and up to the transfer of the related assets, reached 1.1 million m3/day for natural gas and 13.3 thousand barrels of oil equivalent/day for oil and LPG. As a result of the divestment mentioned in Note 5.2.2, in relation with the main assets of the refining and distribution segment, the related results and cash flows are disclosed within discontinued operations. Continuing operations of the segment relates to the Dock Sud Terminal, with a tank park totaling 228 thousand m3 of installed capacity, dedicated to providing storage and logistics services to third parties (see Note 23), and the Company interest in Refinor. 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 the holding and others segment, the Company participates in the transmission and gas transportation businesses. In the transmission business, the Company jointly controls Citelec, which has a controlling interest in Transener, a company engaged in the operation and maintenance of a 20,943 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, located in Bahía Blanca, in the Province of Buenos Aires. Additionally, the segment includes advisory services provided to related companies. |
2. REGULATORY FRAMEWORK
2. REGULATORY FRAMEWORK | 12 Months Ended |
Dec. 31, 2018 | |
Regulatory Framework | |
REGULATORY FRAMEWORK | 2.1 Generation 2.1.1 Generation units The Company’s revenues from the electric power generation activity come from: i) sales to the Spot market pursuant to the provisions applicable within the WEM administered by CAMMESA (SEE Resolution No. 19/2017); 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, 1.281/2006, 287/2017 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 (2) CTG GUEMTG01 TG 101 MW Energy Plus Res. No. 1,281/06 (1) CTG GUEMTV11 TV ≤100 MW SE Resolutions No. 19/2017 CTG GUEMTV12 TV ≤100 MW SE Resolutions No. 19/2017 CTG GUEMTV13 TV >100 MW SE Resolutions No. 19/2017 Piquirenda PIQIDI 01-10 MG 30 MW SE Resolution No. 220/2007 (1) CPB BBLATV29 TV >100 MW SE Resolutions No. 19/2017 CPB BBLATV30 TV >100 MW SE Resolutions No. 19/2017 CT Ing. White BBLMD01-06 MG 100 MW SEE Resolution No. 21/2016 (1) CTLL LDLATG01 TG >50 MW SE Resolutions No. 19/2017 CTLL LDLATG02 TG >50 MW SE Resolutions No. 19/2017 CTLL LDLATG03 TG >50 MW SE Resolutions No. 19/2017 CTLL LDLATG04 TG 105 MW SEE Res. 220/2007 (75%), SEE Res. 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. 19/2017 CTGEBA GEBATG03 TG 164 MW Energy Plus Res. No. 1,281/06 HIDISA AGUA DEL TORO HI HI – Media 120<P≤300 SE Resolutions No. 19/2017 HIDISA EL TIGRE HI Renewable ≤ 50 SE Resolutions No. 19/2017 HIDISA LOS REYUNOS HI HI – Media 120<P≤300 SE Resolutions No. 19/2017 HINISA NIHUIL I HI HI – Small 50<P≤120 SE Resolutions No. 19/2017 HINISA NIHUIL II HI HI – Small 50<P≤120 SE Resolutions No. 19/2017 HINISA NIHUIL III HI HI – Small 50<P≤120 SE Resolutions No. 19/2017 HPPL PPL1HI HI HI – Media 120<P≤300 SE Resolutions No. 19/2017 HPPL PPL2HI HI HI – Media 120<P≤300 SE Resolutions No. 19/2017 HPPL PPL3HI HI HI – Media 120<P≤300 SE Resolutions No. 19/2017 Ecoenergía CERITV01 TV 15 MW Energy Plus Res. No. 1,281/06 (1) CT Parque Pilar PILBD01-06 MG 100 MW SEE Resolution No. 21/2016 (1) P.E. M. Cebreiro CORTEO01 Wind 100 MW Renovar (1) (1) (2) In construction: Generator Generating unit Tecnology Applicable regime CTLL MG 15 MW SE Resolutions No. 19/2017 CTGEBA CC 383 MW Resolución No. 287/2017 PEPE II Wind 53 MW MAT Renovable Res. 281/2017 PEPE III Wind 53 MW MAT Renovable Res. 281/2017 2.1.2 Generation remuneration schemes 2.1.2.1 SEE Resolution No. 19/2017 (remunerative scheme for Old Capacity) 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 U$S-denominated prices payable in pesos by applying BCRA’s exchange rate effective on the last business day of the month of the applicable economic transaction, adjusted through credit or debit notes, as appropriate, to consider the BCRA’s exchange rate of the day before the expiration date, in accordance with CAMMESA’s procedures. 2.1.2.1.1 Remuneration for Available Power Capacity Thermal Power Generators The Resolution provides for a minimum remuneration for power capacity based on technology and scale and allows generating, co-generating and self-generating agents owning conventional thermal power stations to offer Guaranteed Availability Commitments for the energy and power capacity generated by their units not committed under the Energy Plus modality or under the WEM’s supply agreement pursuant to Resolution No. 220/07. Availability Commitments for each unit should be declared for a term of three years, together with information for the Summer Seasonal Programming, with the possibility to offer different availability values for the summer and winter six-month periods. Finally, generators will enter into a Guaranteed Availability Commitment Agreement with CAMMESA, which in turn may assigned by CAMMESA to the demand as defined by the SE. The committed thermal generators’ remuneration for power capacity will be proportional to their compliance. The Minimum Remuneration applies to generators with no availability commitments, with prices ranging from U$S3,050 to U$S5,700/MW-month, depending on the technology and scale. The Base Remuneration applies to generators with availability commitments, with a price of U$S 6,000/MW-month during the May-October 2017 period, and U$S 7,000/MW-month as from November 2017. The Additional Remuneration is a remuneration for the additional available power capacity aiming to encourage availability commitments for the periods with a higher system demand. CAMMESA will define a monthly thermal generation goal for the set of qualified generators on a bi-monthly basis, and will call for additional power capacity availability offers with prices not exceeding the additional price. The additional price amounts to U$S 1,000/MW-month between May and October, 2017, and to U$S2,000/MW-month as from November 2017. Hydroelectric Generators In the case of hydroelectric power plants, a base remuneration and an additional remuneration for power capacity were established. Power capacity availability is determined independently of the reservoir level, the contributions made, or the expenses incurred. Furthermore, in the case of pumping hydroelectric power plants, the following is considered to calculate availability: i) the operation as turbine at all hours within the period, and ii) the availability as pump at off-peak hours every day and on non-business days. The base remuneration is determined by the actual power capacity plus that under programmed and/or agreed maintenance, with prices ranging from U$S2,000 to U$S8,000/MW-month, depending on the scale and type of power plant. In case of hydroelectric power plants maintaining control structures on river courses and not having an associated power plant, a 1.20 factor will be applied to the plant at the headwaters. The additional remuneration applies to power plants of any scale for their actual availability and based on the applicable period, with prices ranging from U$S0 to U$S500/MW-month between May and October 2017, and U$S500 or U$S1,000/MW-month as from November 2017 for pumping or conventional hydroelectric power plants, respectively. As from November 2017, the allocation and collection of 50% of the additional remuneration will be conditional upon the generator taking out insurance, to CAMMESA’s satisfaction, to cover for major incidents on critical equipment, and the progressive updating of the plant’s control systems pursuant to an investment plan to be submitted based on criteria to be defined by the SEE. Other technologies: wind power The remuneration is made up of a base price of U$S7.5/MWh and an additional price of U$S17.5/MWh, which are associated with the availability of the installed equipment with an operating permanence longer than 12 months as from the beginning of the summer seasonal programming. 2.1.2.1.2 Remuneration for Generated and Operated Energy The remuneration for Generated Energy is applied on the real generation The remuneration for Operated Energy applies to the integration of hourly power capacities for the period, and is valued at U$S2.0/MWh for any type of fuel. In the case of hydroelectric plants, prices for Generated and Operated Energy are remunerated 2.1.2.1.3 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. 2.1.2.1.4 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 U$S2.6/MWh multiplied by the usage/startup factor. The usage factor is based on the Rated Power Use Factor recorded during the last rolling year, which will have a 0.5 value for thermal units with a usage factor lower than 30% and a 1.0 value for units with a usage factor lower than 15%. In all other cases, the factor will equal 0. The startup factor is established based on startups recorded during the last rolling year for issues associated with the economic dispatch made by CAMMESA. It will have a 0.0 value for units with up to 74 startups, a 0.1 value for units recording between 75 and 149 startups, and a 0.2 value for units recording more than 150 startups. In all other cases, the factor will equal 0. 2.1.2.1.5 Repayment of Overhauls Financing The Resolution provides that, as regards the repayment of outstanding loans applicable to thermal and hydroelectric generators, credits already accrued and/or committed to the cancellation of such maintenance works will be applied first. The balance will be repaid by discounting U$S1/MWh for the energy generated until the total cancellation of the financing. 2.1.3 Energy Plus - Resolution SE No. 1,281/2006 With the purpose of encouraging new generation works, in 2006 the SE approved Resolution No. 1,281/2006 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: - Generating, co-generating and self-generating agents which, as of the date of issuance of SE Resolution No. 1,281/06, are neither WEM agents nor have facilities or an interconnection with the WEM, will qualify; - These plants should have fuel supply and transportation facilities; - The energy used by GU300 in excess of the Base Demand (energy consumption for 2005 year) qualifies for Energy Plus agreements within the MAT at a price negotiated between the parties; and - For new GU300 entering the system, their Base Demand will equal zero. Under this regime, the Company —through its power plants Güemes, EcoEnergía and Genelba— sells its energy and power capacity for a maximum amount of 280 MW. If a generator cannot meet the power demand by an Energy Plus customer, it should purchase that power in the market at the operated marginal cost. Furthermore, SE Note No. 567/07, as amended, provided that GU300 not purchasing their Surplus Demand within the MAT should pay the Surplus Demand Incremental Average Charge (CMIEE), and that the difference between the actual cost and the CMIEE would be accumulated in an individual account on a monthly basis for each GU300 within CAMMESA's scope. Pursuant to SE Note No. 111/16, until May 2018, the CMIEE was $ 650/MWh for GUMA and GUME and $ 0/MWh for GUDI. As from June 2018, pursuant to SE Note No. 28663845/18, the CMIEE became the greater of $1,200/MWh or the temporary dispatch surcharge. Additionally, it was provided that, until further instructed, movements in the individual account of each GU300 would temporarily not be recorded. Energy Plus contract values are mainly denominated in U.S. dollars; therefore, when expressed in pesos, they are exposed to the nominal exchange rate. Due to the decrease in surplus demand as a consequence of the decrease in economic activity, there are GU300 that decide not to make Energy Plus contracts, and generators have to sell their energy at the spot market, thus reducing their profitability.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). 2.1.4 SE WEM Supply Agreements – Resolution No. 220/2007 (“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 thermal power plants Loma de La Lata and Piquirenda, has executed Agreement Res.220 to sell energy and power capacity for a total amount of 289 MW. 2.1.5 SEE 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 2016/2017 summer; 2017 winter, and 2017/2018 summer periods. Successful bidders will enter into a wholesale power purchase agreement with CAMMESA for a term of 10 years. The remuneration will be made up of the available power capacity price plus the variable non-fuel cost for the delivered energy and the fuel cost (if offered), less penalties and fuel surpluses. Power capacity surpluses are remunerated pursuant to SEE Resolution No. 19/2017. For further information on the projects conducted under this resolution, see Note 16. 2.1.6 SEE Resolution No. 287/2017 On May 10, 2017 the SEE issued Resolution No. 287/17 launching a call for tenders for co-generation projects and the closing to CC over existing equipment. The projects should have low specific consumption (lower than 1,680 kcal/kWh with natural gas and 1,820 kcal/kWh with alternative liquid fuels), and the new capacity should not exceed the existing electric power transmission capacity; otherwise, the cost of the necessary extensions will be borne by the bidder. Awarded projects will be remunerated under a wholesale power purchase agreement which will be effective for a term of 15 years. The remuneration will be made up of the available power capacity price plus the variable non-fuel cost for the delivered energy and the fuel cost (if offered), less penalties and fuel surpluses. Power capacity surpluses are remunerated pursuant to SEE Resolution No. 19/2017. For further information on the projects conducted under this resolution, see Note 16. Renovar Programs In order to meet the objectives, set by Law No. 26,190 and Law No. 27.191 promoting the use of renewable sources of energy, the MEyM called for open rounds for the hiring of electric power from renewable sources (RenovAr Programs, Rounds 1, 1.5 and 2) within the WEM. These calls aimed to assign power capacity contracts from different technologies (wind 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. Additionally, several measures have been established to promote the construction of projects for the generation of energy from renewable sources, including tax benefits (advance VAT reimbursement, accelerated depreciation of the income tax, import duty exemptions, etc.) and the creation of a fund for the development of renewable energies destined, among other objectives, to the granting of loans and capital contributions for the financing of such projects. For further information on the projects conducted under this resolution, see Note 16. Renewable Energy Term Market (“Renewable MAT” Regimen) Through Resolution No. 281/2017, the MEyM regulated the Renewable MAT system with the purpose of setting the conditions for large users within the WEM and WEM distributing agents’ large users comprised within Section 9 of Law No. 27,191 to meet their demand supply obligation from renewable sources through the individual purchase within the MAT of electric power from renewable sources, or self-generation from renewable sources. Furthermore, this resolution regulates the conditions applicable to projects for the generation, self-generation and co-generation of electric power from renewable sources. Specifically, the 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 regime may be covered by other remuneration mechanisms, such as the agreements under the Renovar rounds. Surplus energy will be sold in the Spot Market and remunerated pursuant to SEE Res. No. 19/2017. Finally, contracts executed under the Renewable MAT regime will be administered and managed in accordance with the WEM procedures. The contractual terms, life, allocation priorities, prices and other conditions, notwithstanding the maximum price set forth in Section 9 of Law No. 27,191, may be freely agreed between the parties, although the committed electricity volumes will be limited by the electric power from renewable sources produced by the generator or supplied by other generators or suppliers with which it has purchase agreements in place. For further information on the projects conducted under this resolution, see Note 16. 2.1.7 Transmission costs payable by Generators On November 28, 2017, SEE Resolution No. 1,085/17 approved a new cost distribution methodology that represents the transmission service’s remuneration within the WEM. In this regard, the SEE amended the original regulation of the WEM transmission system, which provided that transmission service costs would be allocated to the Demand and electric power Generation, and resolved that generators should stop paying costs associated with transmission, and start paying a charge representing operating and maintenance costs for connection and transformation equipment linking with the high-voltage transmission system as from December 1, 2017. This amendment implied a cost reduction for the Company. 2.1.8 Fuel Self-Supply for Thermal Power Plants On July, 31, 2018, MINEM Resolution No. 46/18 instructed the SGE to take the necessary actions so that CAMMESA may implement the competitive mechanisms necessary to guarantee the availability of the gas volumes required for the generation of electricity. It also set maximum prices at the Transportation System Entry Point (PIST) for natural gas, based on the source basin, applicable for the valuation of natural gas volumes destined to the generation of electricity to be sold in the WEM and setting a weighted average of U$S 4.20/MBTU (U$S 4.42/MBTU for the neuquina basin). Furthermore, MEGSA Circular Letter No. 254/18 established an online auction mechanism so that CAMMESA may acquire natural gas for supply to thermal power plants during the September-December 2018 period. The auction was only made for interruptible volumes. Later, SGE Resolution No. 70/2018, published in the BO on November 6, 2018, empowered generating, co-generating and self-generating agents within the WEM to acquire fuels, without distinction, required for own generation. This resolution supersedes Section 8 of Resolution No. 95/2013 of the former ES, which provided that the supply of fuels for electric power generation would be centralized in CAMMESA (with the exception of the generation covered by the Energy Plus regime). The cost of generation with own fuels will be valued according to the mechanisms for the recognition of CVPs recognized by CAMMESA. Furthermore, the self-supply capacity will not affect commitments undertaken by generators under WEM supply agreements executed with CAMMESA, and CAMMESA will remain in charge of the commercial management and the dispatch of fuel for generators which do not or cannot make use of such capacity. Therefore, beginning on the second half of November 2018, generators were authorized to declare their variable production costs including fuel costs so that they may be recognized by CAMMESA. This declaration, which was originally limited to units remunerated under SEE Resolution No. 19/17, was later extended to equipment remunerated under a specific agreement. In the seasonal programming conducted on November 12, 2018, the Company has opted to make use of this self-supply capacity and has destined a significant part of its natural gas production as an input to its thermal units’ dispatch. Finally, on February 8, 2019 the SGE instructed CAMMESA, to apply as from February 18, 2019, for the definition of maximum CVPs to be recognized in each two-week period, the weighted average price of natural gas per basin which would have resulted if the total domestic natural gas production necessary for the supply foreseen by the electricity sector had been acquired under contracts entered into under the last auction conducted by CAMMESA in the MEGSA. 2.2 Transmission 2.2.1 Tariff situation During 2018, as established in the RTI, the ENRE applied the biannual tariff update mechanism, according to the corresponding formula, which depends on the Wholesale Price, Consumer Price and Salaries indexes, as long as the compliance of the Trigger Clause is verified. Regarding Transener, on February 19, 2018, the ENRE issued Resolution No. 37/18, which was rectified on April 5, 2018 by ENRE Resolution No. 99/18. This resolution adjusted Transener´s remuneration by 24.15% for the December 2016 to December 2017 period, to be applied to the remuneration scheme as from February 2018. Subsequently, on November 16, 2018, the ENRE issued Resolution No. 280/18, which adjusted Transener's compensation by 42.55% for the December 2016 to June 2018 period, to be applied to the remuneration scheme as from August 2018. Regarding Transba, on February 19, 2018, the ENRE issued Resolution No. 38/18, which was rectified on April 5, 2018 by ENRE Resolution No. 100/18. This resolution adjusted Transba´s remuneration by 23.39% for the December 2016 to December 2017 period, to be applied to the remuneration scheme as form February 2018. Subsequently, on November 16, 2018, the ENRE issued Resolution No. 281/18, which adjusted Transba´s remuneration by 43.25% for the December 2016 to June 2018 period, to be applied to the remuneration scheme as from August 2018. On the other hand, on July 3, 2018, the ENRE informed the beginning of the procedure to determine the remuneration of the Independent Carriers in exploitation stage: TIBA (Transba), Fourth Line (Transener), YACYLEC and LITSA. In this regard, on October 8, 2018, costs, investments and aimed tariff corresponding to Fourth Line and TIBA were presented to the ENRE. 2.3 Energy distribution 2.3.1 General Edenor Concession was granted in 1992 for a 95-year term, which may be extended for an additional maximum period of 10 years. The ENRE is empowered to control the quality levels of the technical product and service, the commercial service and the compliance with public safety regulations, as provided for in the Concession Agreement. If the Distribution Company fails to comply with the obligations assumed, the ENRE may apply the penalties stipulated in the aforementioned Agreement. 2.3.2 Electricity rate situation On January 31, 2017, the ENRE issued Resolution No. 63/17, pursuant to which it determined the definitive Electricity Rate Schedules, the review of costs, the required quality levels, and all the other rights and obligations that are to be applied and complied with by Edenor as from February 1, 2017. Furthermore, it limited the increase in the VAD resulting from the RTI process and applicable as from February 1, 2017, to a maximum of 42% vis-á-vis the VAD in effect at the date of issuance of the aforementioned resolution, with the remaining value of the new VAD being applied in two stages, the first of them in November 2017 and the second and last one in February 2018. Furthermore, on November 30, 2017, by means of Resolution No. 603/17, the ENRE approved the CPD values, applicable as from December 1, 2017, and retroactively to consumption recorded in the months of August through November 2017. That amount totaled $ 753.9 million and was billed in two installments, December 2017 and January 2018. Additionally, the Electricity Rate Schedule’s values, applicable as from December 1, 2017, were approved. On January 31, 2018, the ENRE issued Resolution No. 33/18, whereby it approves the CPD values relating to the July 2017-December 2017 period, which were in the order of 11.99%, the values of the 48 monthly installment to be applied in accordance with the provisions of ENRE Resolution No. 329/17 which were deferred in the year 2017, and the electricity rate schedule to be applied to consumption recorded as from February 1, 2018. Additionally, it is informed that the average electricity rate value amounts to $2.4627/kwh. Furthermore, on July 31, 2018, the ENRE issued Resolution No. 208/18, whereby it approves, as from August 1, 2018, the CPD relating to the January-June 2018 period, to be applied 7.93% as of August 1, 2018, and 6.51% in six (6) consecutive monthly installments as of February 1, 2019. The CPD amounted to 15.85%. Moreover, the above-mentioned resolution sets the system of caps for the social tariff as well as the values that the Company shall apply to determine and credit discount amounts onto the power bills of the consumers affected by deficiencies in the quality of the technical product and/or the quality of the technical and commercial service as from the first control day of the September 2018-February 2019 six-month period. Additionally, it is informed that the average electricity rate value amounts to $2.9871/kWh. Finally, according to section 4 of SE Resolution No. 366/18, passed on December 27, 2018, SE Resolution 1,091/17 was repealed, thus eliminating the energy-savings discount for the residential tariff charged to customers framed or not under the social tariff as from January 1, 2019. With regard to the social tariff discounts, they will be assumed by the Governments of the Province of Buenos Aires and the City of Buenos Aires in accordance with the provisions of the 2019 Federal Budget Law. 2.3.3 Framework Agreement On January 10, 1994, Edenor, together with Edesur S.A., the Federal Government and the Government of the Province of Buenos Aires entered into the so-called Framework Agreement, whose purpose was to establish the guidelines under which the Company was to supply electricity to low-income areas and shantytowns. In October 2003, the so-called New Framework Agreement was signed with the aim of setting the bases and general guidelines based on which the Federal and the Provincial Governments’ economic contribution for the electricity supplied by the two Distribution Companies to the different shantytowns would take place and be coordinated. After successive extensions of the agreement’s term, the latest extension was in effect until September 30, 2017. At the date of these financial statements, Edenor is negotiating with the Federal Government the signing of a new extension for the period elapsed from October 1, 2017 through December 31, 2018, and the payment of the electricity supplied during such period; therefore, no revenue for this concept has been recognized. Additionally, and as a consequence of the transfer of jurisdiction over the public service of electricity distribution from the Federal Government to the Province of Buenos Aires and to the City of Buenos Aires provided for by Law 27,467, Edenor will be required, when the transfer takes place, to undertake a review, with the new Grantors of the Concession, of the treatment to be given to low-income areas and shantytowns’ consumption of electricity as from January 1, 2019. In this framework, the Government of the Province of Buenos Aires enacted Law No. 15,078 on General Budget, which establishes that the aforementioned consumption shall be borne by the referred to province’s Municipalities and approved by the regulatory entities or local authorities having jurisdiction in each area. 2.3.4 Penalties As of December 31, 2018 and 2017, Edenor has recognized in its financial statements the penalties accrued, whether imposed or not yet issued by the ENRE, relating to the control periods elapsed as of those dates. Furthermore, ENRE Resolution No. 63/17, Note 2.c) has set out the control procedures, the service quality assessment methodologies, and the penalty system, applicable as from February 1, 2017, for the 2017 – 2021 period. Additionally, by means of Note No. 125,248 dated March 29, 2017, the ENRE sets the new penalty determination and adjustment mechanisms in relation to the control procedures, the service quality assessment methodologies, and the penalty system applicable as from February 1, 2017 for the 2017 – 2021 period set by ENRE Resolution No. 63/17, providing for the following: i) Penalty values shall be determined on the basis of the kWh value, the average electricity rate, the cost of energy not supplied or other economic parameter at the value in effect at the first day of the control period or the value in effect at the date of the penalizable event for penalties arising from specific events. ii) For all the events that occurred during the transition period (the period between the signing of the Adjustment Agreement and the effective date of the RTI) for which a penalty has not been imposed, penalties shall be adjusted by the IPC used by the BCRA to produce the ITCRM for the month prior to the end of the control period or that for the month prior to the date of occurrence of the penalizable event for penalties arising from specific events, until the date on which the penalty is imposed. This mechanism is also applicable to the concepts penalized after April 15, 2016 (ENRE Note No. 120,151) and until the effective date of the RTI. This adjustment will be part of the penalty principal amount. iii) Unpaid penalties will accrue interest at the BNA lending rate for thirty-day discount transactions from the date of the resolution to the date of actual payment, as interest on late payment. In the case of penalties relating to Customer service, the calculated amount shall be increased by 50%. iv) Penalties subsequent to February 1, 2017 will be valued at the Kwh value or the cost of energy not supplied of the first day of the control period or of the day on which the penalty is imposed for penalties arising from specific events. Those concepts will not be adjusted by the IPC, applying the interest on late payment established in iii) above. Moreover, an additional fine equivalent to twice the amount of the penalty will be determined if payment is not made in due time and proper form. In the ENRE’s opinion many of the penalties imposed in kWh must be valued at the date of occurrence of the penalizable event; these modifications have been quantified and recognized as of December 31, 2018. In accordance with the provisions of Sub-Appendix XVI to ENRE Resolution No. 63/17, Edenor is required to submit in a term of 60 calendar days the calculation of global indicators, interruptions for which force majeure had been alleged, the calculation of individual indicators, and will determine the related discounts, crediting the amounts thereof within 10 business days. In turn, the ENRE will examine the information submitted by Edenor, and in the event that the crediting of such discounts were not verified will impose a fine, payable to the Federal Government, equivalent to twice the value that should have been recorded. At the date of these financial statements, Edenor has complied with the provisions of the aforementioned Resolution in relation to the six-month period ended August 31, 2018. Furthermore, in different resolutions concerning penalties relating to the Quality of the Commercial and Technical Service, the Regulatory Entity has provided for the application of increases and adjustments, applying for such purpose a criterion different from the one applied by the Comp |
3. BASIS OF PRESENTATION
3. BASIS OF PRESENTATION | 12 Months Ended |
Dec. 31, 2018 | |
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 11, 2019. 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, unless otherwise stated. These accounting policies have been applied consistently by all Group companies. Restatement of financial statements The financial statements have been stated in terms of the measuring unit current as of December 31, 2018 in accordance with IAS 29 "Financial reporting in hyperinflationary economies". Comparative information The comparative information has been stated in terms of the measuring unit current as of December 31, 2018 in accordance with IAS 29 "Financial reporting in hyperinflationary economies". Certain reclassifications have been made to those financial statements to keep the consistency in the presentation with the amounts of the current year. Additionally, with the purpose of improving the quality of the revised internal information for decision-making and resource allocation processes, the Company has assigned to each business segment the expenses of the centralized structure and the financial results associated with the management of the net financial debt and the income tax considered in the Holding and Others segment. |
4. ACCOUNTING POLICIES
4. ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies | |
ACCOUNTING POLICIES | The main accounting policies used in the preparation of these financial statements are explained below. 4.1 New accounting standards, amendments and interpretations issued by the IASB effective as of December 31, 2018 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, 2018 - IFRS 15 "Revenue from contracts with customers" (issued in May 2014 and amended in September 2015) - IFRS 9 "Financial instruments" (amended in July 2014) - IFRS 2 "Share based payments" (amended June 2016) - IFRIC 22 "Foreign currency transactions and advance consideration" (issued in December 2016) - Annual improvements to IFRS Standards - Cycle 2014-2016 (issued in December 2016) The impact of the main issues related to the initial application of IFRS 9 and IFRS 15 is disclosed below, the application of the rest of the standards, amendments or interpretations did not have any impact on the results of the operations or the financial position of the Company, neither on the accounting policies applicable as from January 1, 2018. 4.1.1 Impacts of adoption 4.1.1.1 IFRS 15 The Company opted to apply IFRS 15 retrospectively as from of January 1, 2018, only in relation to contracts that were not completed at the date of initial application, recognizing, when applicable, the cumulative effect of the application as an adjustment to the opening balance of retained earnings. The management has assessed the effects of the application of IFRS 15, in relation to the contracts not completed as of January 1, 2018 and has not identified differences related to the identification of performance obligations, nor the methodology for allocating prices to those obligations, that could affect the amount or timing of revenue recognition and, as a consequence, the Company did not recognize any adjustment to the opening balance of retained earnings. Finally, no significant contract assets or contract liabilities to be separately presented in accordance with IFRS 15, have been identified. 4.1.1.2 IFRS 9 The Company applied IFRS 9 amended as from January 1, 2018, with the practical expedient permitted under the standard, without restating comparative periods. The Company has reviewed its financial assets measured and classified at fair value through profit and loss or at amortized cost and has concluded that satisfy conditions to maintain the classification. As a result, the initial adoption did not affect the classification and measurement of financial assets of the Company. On the other hand, regarding the new hedge accounting model, the Company has not opted for the designation of any hedge relationship at IFRS 9 amended initial adoption date and, consequently, the initial adoption did not have any impact on the results of operations or the financial position of the Company. Finally, in relation to the change in the impairment methodology for financial assets based on expected credit losses, the Company applied the simplified approach of IFRS 9 for trade receivables and for other receivables with similar risk characteristics. To measure the expected credit losses, rates are calculated for different ranges of days past due on receivables that are grouped by business segment, and based on shared credit risk characteristics. The expected credit loss as of January 1, 2018 was determined based on credit loss rates calculated for days past due detailed below: Rates Undue 30 days 60 days 90 days 120 days 150 days 180 days +180 days Distribution of energy 8% 8% 12% 19% 26% 59% 69% 69% Rest of business segments 0.32% 0.93% 8.11% 19.61% 35.69% 45.63% 59.00% 63.01% The loss allowance for trade receivables adjustment as of January 1, 2018 for the application of the expected credit losses methodology to the loss allowance as of December 31, 2017, stated in terms of the measuring unit current as of December 31, 2018, amounted to $ 153 million and is detailed as follows: Initial Adjustment Loss allowance for trade receivables calculated under IAS 39 as of 12/31/2017 822 Adjustment to the opening balance of retained earnings 153 Loss allowance for trade receivables calculated under IFRS 9 as of 01/01/2018 975 The loss allowance for other receivables adjustment as of January 1, 2018 for the application of the expected credit losses methodology to the loss allowance as of December 31, 2017, stated in terms of the measuring unit current as of December 31, 2018, amounted to a decrease of $ 39 million and is detailed as follows: Initial Adjustment Loss allowance for other receivables calculated under IAS 39 as of 12/31/2017 256 Adjustment to the opening balance of retained earnings (39) Loss allowance for other receivables calculated under IFRS 9 as of 01/01/2018 217 The detailed adjustments to the opening balance in equity as a result of the application of IFRS 9, stated in terms of the measuring unit current as of December 31, 2018, are disclosed net of tax effect for a total amount of $ 80 million, with counterpart in retained earnings of $ 55 million and in non-controlling interest of $ 25 million. In the prior year, the calculation of the loss allowance for trade receivables and other receivables was assessed based on the incurred loss model, and considered the existence of objective evidence of default for the recognition of losses in the statement of comprehensive income. Finally, although cash, cash equivalents and financial assets are also subject to the impairment requirements of IFRS 9, the identified impairment loss is immaterial. 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 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 will apply the practical expedients permitted under IFRS 16, in relation to the lease contracts previously identified as such under IAS 17, retrospectively with the cumulative effect recognised as an adjustment to the opening balance of retained earnings as of January 1, 2019, without restating the comparative information. The company will recognise right-of-use assets for an amount equal to the lease liability at the adoption date (which is equivalent to the present value of the remaining lease payments), adjusted by the amount of any prepaid or accrued lease payments as of December 31, 2018. The Company is ending the analysis of its application and estimates that the initial application will not have a significant impact in retained earnings. The Company, will maintain the recorded book value for the right-of-use assets and lease liabilities previously classified as finance leases under IAS 17, at the adoption date. Finally, no transition adjustments will be made for leases in which Pampa is a lessor. - - - 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 estimates that its application 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 estimates that its application will not have 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 any impact on the Company’s operating results or financial position. - IAS 19 "Employee benefits": amended in February 2018, establishes changes for measurement of past services costs and net interest in case of post-employment defined benefit plans amendments, curtailments or settlements. It is applicable to plan amendments, curtailments or settlements occurring on or after 1 January 2019. - Conceptual Framework: the IASB issued a revised conceptual framework for financial reporting that will replace the current framework. However, the framework is not a standard, nor does it replace any existing standard. The set of concepts of the revised conceptual framework is effective immediately for the IASB and Interpretations Committee. It is effective for annual periods beginning on or after January 1, 2020 for companies with financial statements under IFRS that use the conceptual framework to develop accounting policies when no IFRS Standard applies to a particular transaction. - IFRS 3 "Business Combinations": amended in October 2018. Clarifies the business definition and establishes guidelines to determine whether a transaction should be accounted as a business combination or as an asset acquisition. It is applicable to acquisition transactions on or after January 1, 2020 and early adoption is permitted. - IAS 1 "Presentation of financial statements" and IAS 8 "Accounting policies, changes in accounting estimates and errors": amended in October 2018. Clarify the definition of material and incorporate the concept of "obscured information" when there is a similar effect to omitting or misstating that information. It is applicable prospectively to annual periods beginning on January 1, 2020 and early adoption is permitted. 4.3 Effects of changes in inflation and foreign exchange rate 4.3.1 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 determine whether an economy is categorized as a high inflation economy under IAS 29, the standard details several factors to be assessed, including the existence of a cumulative inflation rate over three years approaching, or exceeding, 100%. Cumulative inflation over the last three years exceeds 100%. Therefore, the Argentine economy should be considered a high inflation economy under IAS 29 as from July 1, 2018. The standard establishes that the adjustment methodology should be applied from its last application date, which was February 2003. In an inflationary period, an entity holding an excess of monetary assets over monetary liabilities loses purchasing power, and an entity with an excess of monetary liabilities over monetary assets gains purchasing power, provided such items are not subject to an adjustment mechanism. In turn, Law No. 27,468, published in the BO on December 4, 2018, amended Article 10 of Law No. 23,928 as amended, establishing that the repeal of all legal or regulatory standards that establish or authorize the indexation by prices, monetary update, variation of costs or any other form of repowering of debts, taxes, prices or rates of goods, works or services, does not include financial statements, for which the provisions of article 62 of Law No. 19,550 as amended will continue to be applicable. Additionally, the aforementioned law repealed of Decree No. 1,269 / 2002 dated on July 16, 2002 as amended and delegated to the PEN, through its controlling agencies, to establish the date from which the mentioned provisions will take effect in relation to the presentation of financial statements. Therefore, through General Resolution 777/2018, published in the BO on December 28, 2018, the CNV provided that entities subject to its control should apply the restatement method in a constant currency as established by IAS 29 for financial statements, interim financial statements and special purposes financial statements for periods ending as from December 31, 2018. The main procedures for adjusting for inflation are the following: - Monetary assets and liabilities are not restated since they are already stated in terms of the measuring unit current at the end of the reporting year. - Assets and liabilities subject to adjustments based on specific agreements are restated in accordance with such agreements. - Non-monetary assets and liabilities are restated by applying the variation of the general price index from the acquisition or revaluation to the end of the reporting year. - Equity components are restated by applying the variation of the general price index from the date of contribution, or from the moment they arose by any other means. - Non-monetary assets and liabilities measured at fair value are not restated since they are already stated in terms of the measuring unit current at the end of the reporting year. - Components of the statement of comprehensive income are restated by applying the variation of the general price index form the date on which the income and expenses were originally recognized. - The loss or gain derived from the net monetary position of the Company is included in the statement of comprehensive income, in “Financial results”, under the heading "Gain on monetary position". - All the comparative figures are restated by applying the variation of the general price index until the end of the current year. For initial application of the restatement method, equity accounts were restated as follows: - Share capital and treasury shares were restated from the date of subscription, repurchase or from last adjustment for inflation application date, whichever happened later. The resulting amount was included in "Adjustment of capital" and "Adjustment of own shares in portfolio" lines, respectively. - Share premiums were restated from the date of the respective merger. - Exchange differences on translation were stated in real terms. - Other comprehensive income or loss were restated from the date of each accounting registration. - Reserves were not restated in the initial application. The adjustment for inflation was calculated considering the price index established by the FACPCE based on the price index published by the INDEC. As of December 31, 2018, the price index amounted to 184,255, with an inflation rate of 47.6% and 148.0% for the periods of 12 and 36 months, ended on that date, respectively. 4.3.2 Transaction and balances in foreign currency Foreign currency transactions are translated into the functional and presentation currency using the exchange rates as of at the date of the transaction or measurement, if there are remeasured items. 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 statement of comprehensive income, net of inflation effect, 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. 4.3.3 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, stated in terms of the measuring unit current at the end of the reporting year. 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 translation process into the functional currency to presentation currency transactions are recognized in “Other Comprehensive Income”, net of inflation effect. 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. 4.4 Principles of consolidation and equity accounting 4.4.1 Subsidiaries Subsidiaries are all entities over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. 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 4.4.5 below). Intercompany transactions, balances and unrealized gains on transactions between Group companies are eliminated. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the transferred asset. Accounting policies of subsidiaries have been changed 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 under the heading Foreing Currency Exchage Difference, net. Non-controlling interests in the results and equity of subsidiaries are shown separately in the Consolidated Statement of Comprehensive Income, Consolidated Statement of Changes in Equity and Consolidated Statement of Financial Position respectively. 4.4.2 Associates Associates are all entities over which the group has significant influence but not control or joint control. This is generally the case where the Group holds between 20% and 50% of the voting rights. Investments in associates are accounted for using the equity method of accounting (see Note 4.4.4 below), after initially being recognized at cost. 4.4.3. Joint arrangements 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 4.4.4 below), after initially being recognized at cost. 4.4.4. Equity Method Under the equity method of accounting, the investments are initially recognized at cost and adjusted thereafter to recognize the Group’s share of the post-acquisition profits or losses of the investee in profit or loss, and the Group’s share of movements in other comprehensive income of the investee in other comprehensive income. Dividends received or receivable from associates and joint ventures are recognized as a reduction in the carrying amount of the investment. When the Group’s share of losses in an equity-accounted investment equals or exceeds its interest in the entity, together with any long-term interests that, in substance, form part of the net investment, the Group does not recognize further losses, unless it has incurred obligations or made payments on behalf of the other entity. Unrealized gains on transactions between the Group and its associates and joint ventures are eliminated to the extent of the group’s interest in these entities. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of equity accounted investees have been changed where necessary to ensure consistency with the policies adopted by the Group. The carrying amount of equity accounted investments is tested for impairment in accordance with the policy described below in Note 4.9. 4.4.5 Business combinations The acquisition method of accounting is used to account for all business combinations, regardless of whether equity instruments or other assets are acquired. The consideration transferred for the acquisitions comprises: i) the fair value of the transferred assets, ii) the liabilities incurred to the former owners of the acquired business, iii) the equity interests issued by the group, iv) the fair value of any asset or liability resulting from a contingent consideration arrangement, and v) the fair value of any pre-existing equity interest in the subsidiary. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. The group recognises any non-controlling interest in the acquired entity on an acquisition-by-acquisition basis 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. 4.4.6. Changes in ownership interests The group treats transactions with non-controlling interests that do not result in a loss of control as transactions with equity owners of the group. A change in ownership interest results in an adjustment between the carrying amounts of the controlling and non-controlling interests to reflect their relative interests in the subsidiary. Any difference between the amount of the adjustment to non-controlling interests and any consideration paid or received is recognized in “Other reserves” within equity attributable to owners of the Company. When the Group ceases to consolidate or equity account for an investment because of a loss of control, joint control or significant influence, any retained interest in the entity is remeasured to its fair value with the change in carrying amount recognized in profit or loss. This fair value becomes the initial carrying amount for the purposes of subsequently accounting for the retained interest as an associate, joint venture or financial asset. In addition, any amounts previously recognized in other comprehensive income in respect of that entity are accounted for as if the Group had directly disposed of the related assets or liabilities. This may mean that amounts previously recognised in other comprehensive income are reclassified to profit or loss. If the ownership interest in a joint venture or an associate is reduced but joint control or significant influence is retained, only a proportionate share of the amounts previously recognized in other comprehensive income are reclassified to profit or loss where appropriate. 4.5 Segment reporting Operating segments are reported in a manner consistent with the internal reporting provided to the Executive committee. The Executive committee, is the highest decision-making authority, is the person responsible for allocating resources and setting the performance of the entity’s operating segments, and has been identified as the person/ body executing the Company’s strategic decisions. In segmentation the Company considers transactions with third parties and intercompany operations, which are done on internal transfer pricing based on market prices for each product. 4.6 Property, plant and equipment Property, Plant and Equipment is measured following the cost model. It is recognized at acquisition cost stated in terms of the measuring unit current at the end of the reporting year, 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, net of the inflation effect, 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 stated in terms of the measuring unit current at the end of the reporting year, 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 sale price with the carrying amount, stated in terms of the measuring unit current at the disposal date. The resulting amount is subsequently stated in terms of the measuring unit current at the end of the reporting year. 4.6.1 Depreciation methods and usefull 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. 4.7 Intangible assets 4.7.1 Goodwill Goodwill is the result of the acquisition of subsidiaries. Goodwill represents the excess of the acquisition cost over the fair value of the equity interest in the acquired entity held by the company on the net identifiable assets acquired at the date of acquisition, stated in terms of the measuring unit current at the end of the reporting year. 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. 4.7.2 Concession arrangements Concession arrangements corresponding to Edenor and hydroelectric generation plants Diamanteand 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 stated in terms of the measuring unit current at the end of the reporting year less depreciation a less any accumulated impairment. They are amortized following the straight-line method based on each asset’s useful life, which corresponds to the life of each concession agreement. 4.7.3 Identified intangible assets in acquired investments Corresponds to intangible assets identified at the moment of the acquisition of companies. Identified assets meet the criteria established in IFRS for capitalization and are stated in terms of the measuring unit current at the end of the reporting year less depreciation a less any accumulated impairment. They are amortized by the straight-line method according to the useful life of each asset, considering the estimated way in which the benefits produced by the asset will be consumed. 4.8 Assets for oil and gas exploration The Company uses the successful efforts method of accounting for its oil and gas exploration and production activities. This method involves the capitalization of: (i) the cost of acquiring properties in oil and gas exploration and production areas; (ii) the cost of drilling and equipping exploratory wells that result in the discovery of commercially recoverable reserves; (iii) the cost of drilling and equipping development wells, and (iv) the estimated asset retirement obligations. According to the successful efforts method of accounting, exploration costs (including geological and geophysical costs), excluding exploratory well costs, are expensed during the period in which they are incurred. Drilling costs of exploratory wells are capitalized until it is determined that proved reserves exists and they justify the commercial development. If reserves are not found, such drilling costs are expensed. Occasionally, an exploratory well may determine the existence of oil and gas reserves but they cannot be classified as proved when drilling is complete. In those cases, such costs continue to be capitalized insofar as the well |
5. GROUP STRUCTURE
5. GROUP STRUCTURE | 12 Months Ended |
Dec. 31, 2018 | |
Group Structure | |
GROUP STRUCTURE | 5.1 Business combinations 5.1.1 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”) for an amount of U$S 80 million. On July 27, 2016, the Transaction was closed upon the meeting of all applicable conditions precedent, the Transaction’s final price, was set at U$S 900 million. The following operations were completed after the closing of the Transaction: (i) On October 14, 2016, YPF acquired from Petrobras 33.33% of all rights and obligations in the concession over the Río Neuquén area for an amount of U$S 72 million and the 80% interest in the concession over the Aguada de la Arena area for an amount of U$S 68 million. (ii) On October 27, 2016, an affiliate of Petrobras Brasil acquired from Petrobras 33.6% of the rights and obligations in the concession over the Río Neuquén area for an amount of U$S 72 million and 100% of the rights and obligations pursuant to the Operating Agreement entered into by Petrobras, Bolivia Branch and YPF Bolivia, regarding the Colpa and Caranda areas in Bolivia for a negative value of U$S 20 million. (iii) The Company increased its direct and indirect interest in Petrobras to 90.4% as a result of the consummation of mandatory tender offer and voluntary public offer for the exchange of Petrobras’ shares (the offers), on November 22 and 23, 2016. (iv) In March 2017 and as a result of the Company's adherence to the regularization regime (moratorium), in relation to certain liabilities identified (see detail in Note 10.4), which established benefits of releasing tax fines and reducing compensatory interests, a payment obligation to Petrobras Brasil of $ 171 million, was generated as a contingent consideration in accordance with the Purchase Agreement and was paid on April 18, 2017. 5.1.2 Sale of participations 5.1.2.1. Sale and swap of indirect interest in TGS On July 27, 2016, the Company sold its 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”) to 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”). The economic impact of the transaction reached to a gain of $ 1,015 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. 5.1.2.2 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 Mario Cebreiro Wind Farm, on March 10, 2017, CTLL and PP entered into an agreement with Valdatana Servicios y Gestiones S.L.U., an entity which later changed its name to Viento Solutions S.L. for the sale of 50% of Greenwind’s capital stock and rights for a total amount of U$S 11.2 million. As a result of the transaction, the Company has deconsolidated Greenwind's assets and liabilities and presents its interest in the joint venture based on the equity method of accounting. 5.1.2.3 Sale of interest in Oldelval On November 2, 2018, the Company entered into an agreement with ExxonMobil Exploration Argentina S.R.L. for the sale of 21% of Oldelval’s capital stock and rights, maintaining the remaining 2.1% interest. Subsequently, on November 27, 2018, the transaction was closed upon the meeting of the applicable precendent conditions, the purchase price paid by the purchaser amounted to U$S 36.4 million. As a result of the transaction, the Comany has recongnised a $ 1.052 million gain, before taxes, stated in terms of the measuring unit current as of December 31, 2018. 5.1.3 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, 5.1.3.1 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 absorbing company, with Petrobras, as absorbed company. Furthermore, it was considered appropriate to incorporate as absorbed companies under such merger, two Petrobras’ subsidiaries: 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. On December 23, 2016, the Board of Directors of Pampa Energía, as absorbing company and Petrobras Argentina, PEISA and Albares, as absorbed companies, approved the CPF, which was authorized by the CNV on January 13, 2017. On February 16, 2017, the Extraordinary General Meetings of Shareholders approved the merger in agreement with the terms of the CPF. On April 19, 2017, the final merger agreement was entered into. 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 May 2, 2018, the Public Registry registered the merger. On May 21, 2018, the exchange of Petrobras shares for those of the Company was effected (for the remaining 10.6% minority interest). As a result, 193,745,611 shares of Petrobras were exchanged for 101,771,793 shares of the Company, with 2,775 shares remaining as treasury shares since they were fractional or decimal shares which were paid in cash. As of December 31, 2018, in accordance with current regulations, the Company proceeded to sell those shares. There was no exchange ratio for PEISA and Albares’s shares, as Petrobras holds 100% of the capital stock of these companies. 5.1.3.2 2017 Reorganization On September 22, 2017, the Company’s Board of Directors informed that the companies which would take part in the merger would be the Company, as absorbing company, and BLL, CTG, CTLL, EG3 Red, INDISA, INNISA, IPB, PP II and PEPASA, as absorbed companies. The merger became effective on October 1, 2017, date as from which the transfer of the absorbed companies’ equity to the absorbing company became effective and, therefore, all their rights and obligations, assets and liabilities will become incorporated into the absorbing company’s equity, all of which subject to the corresponding corporate approvals under the applicable law and the registration with the Public Registry of Commerce of the merger and the dissolution without liquidation of the absorbed companies. On December 21, 2017, the Board of Directors of Pampa Energía, as absorbing company and BLL, CTG, CTLL, EG3 Red, INDISA, INNISA, IPB, PP II and PEPASA, as absorbed companies, approved the CPF, and on April 27, 2018, the Extraordinary General Meetings of Shareholders approved the merger in agreement with the terms of the CPF. On June 1, 2018, the final merger agreement was entered into between Pampa and the absorbed companies and was filed for registration before the applicable controlling authorities. On July 20, 2018 the CNV’s authorization on merger publication was obtained and on August 2, 2018, the Public Registry registered the merger. On August 15, 2018, the exchange of PEPASA, CTG INNISA and INDISA shares for 144.322.083 of the Company was effected, with 1,880 shares remaining as treasury shares since they were fractional or decimal shares which were paid in cash. As of December 31, 2018, in accordance with current regulations, the Company proceeded to sell those shares. There was no exchange ratio for the remaining companies, as Pampa direct and indirect held 100% of the capital stock of these companies. 5.1.3.3 Merger of Subsidiaries The merger's effective date detailed below 5.1.3.3.1. CTLL, EASA and IEA.SA On December 7 and 22, 2016, the Board of Directors of CTLL, EASA and IEA.SA resolved to initiate all necessary tasks and procedures for the merger through absorption among CTLL, as absorbing company, and EASA and IEA.SA, 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. 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. On July 16, 2018, the Public Registry registered the merger. 5.1.3.3.2 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. On March 5, 2018, the Public Registry registered the merger. 5.2. Discontinued operations As of December 31, 2017 assets and liabilities subject to the transactions detailed below 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. 5.2.1. Sale of PELSA shares and certain oil areas On January 16, 2018, the Company agreed to sell to Vista Oil & Gas S.A.B. de C.V. (“Vista”) its direct 58.88% interest in PELSA and its direct interests in the Entre Lomas, Bajada del Palo, Agua Amarga and Medanito-Jagüel de los Machos blocks, in line with the Company's strategy to focus its investments and human resources both on the expansion of its power generation installed capacity and on the exploration and production of natural gas, placing a special focus on the development and exploitation of unconventional gas reserves, as well as to continue investing on the development of its utility concessions. On April 4, 2018, upon the meeting of all applicable conditions precedent, the transaction was closed. The price paid by Vista, considering the agreed adjustments regarding interests in PELSA, amounted to U$S 389 million. This transaction generated a profit comprehensive income net of taxes in the amount of $ 1,115 million, as follows: 12.31.2018 Sale price 10,197 Book value of assets sold and costs associated with the transaction (8,553) Result for sale 1,644 Interests (1) 133 Income tax (818) Included in results 959 Other comprehensive income (loss) Reclasification from exchange differences on translation 223 Income tax (67) Included in Other comprehensive income 156 Total comprehensive income 1,115 (1) Are exposed in "Financial income" of the consolidated statement of comprehensive income related to discontinued operations 5.2.2. Sale of assets in the Refining and Distribution segment On December 7, 2017, the Company executed with Trafigura Ventures B.V and Trafigura Argentina S.A. an agreement for the sale of certain assets in the Company’s refining and distribution segment based on the conviction that the oil refining and distribution business calls for a larger scale to attain sustainability. The closing of the transaction, which is subject to the meeting of certain conditions precedent. 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. Pursuant to the foregoing, as of December 31, 2017, assets and liabilities subject to this transaction have been it involved the recognition of an impairment of Intangible assets and Property, plant and equipment in the amount of $ On May 9, 2018, upon the meeting of all applicable precedent conditions the transaction was subject to, the closing of the sale to Trafigura was carried out, including the transfer of all the Company’s contracts, permits and licenses key for the ordinary conduction of the business, together with the transfer of 1,034 employees related to the assets subject-matter of the sale, of which 67 employees work on the Company’s corporate segment. After applying the adjustments stipulated in the assets purchase and sale agreement, the transaction price amounted to U$S 124.5 million, and was paid by Trafigura on May 9, 2018, with the exception of U$S 9 million which were previously paid as down payment upon the execution of the agreement, and U$S13.5 million which have been deposited in an escrow account and which will be released in line with the transfer of the network’s gas stations to the “Puma Energy” brand. Furthermore, after the closing of the transaction, Trafigura paid to Pampa U$S 56 million for the purchase of crude oil. As of December 31, 2018, the closing of the transaction did not generate additional profits or losses, according to the following detail: 12.31.2018 Sale price 1,044 Book value of assets sold and costs associated with the transaction (1,044) Result for sale - Income tax - Total result - It should be highlighted that, as of December 31, 2018, the Company considers that under IFRS it has transferred control over the whole assets since, pursuant to the participation agreements entered into with Trafigura, it has not retained the power to redirect their use or substantially derive other benefits. However, as of the issuance of these financial statements the transfer of ownership and the assignment of agreements associated with the assets mentioned in subsections (i) and (iii) have been perfected, whereas the process for the legal transfer and actual assignment of the agreements associated with the assets described in subsections (ii) and (iv) has started with the rebranding of gas stations to the “Puma Energy” brand, owned by Trafigura, a process which is expected to end in 2019. Upon completing the above-mentioned asset transaction, Trafigura and the Company executed several contractual agreements whereby, for the May 9, 2018 to November 9, 2018 period, the Dock Sud Terminal provided reception, storage and dispatch services for light fuels and base lubricants owned by Trafigura. The Company continued executing agreements with other high level companies, to align the Dock Sud plant’s activity as a terminal providing logistics services to third parties. Results associated with the Dock Sud Terminal are disclosed under Continuing operations in the Refining and Distribution segment (see Note 23). The consolidated statement of comprehensive income related to discontinued operations is presented below: As of December 31, 2018: Oil and gas Refining y distribution Eliminations Total Revenue 2,481 15,900 (3,388) 14,993 Cost of sales (1,233) (13,606) 3,419 (11,420) Gross profit 1,248 2,294 31 3,573 Selling expenses (72) (1,243) - (1,315) Administrative expenses (46) (152) - (198) Exploration expenses (4) - - (4) Other operating income 54 211 - 265 Other operating expenses (231) (378) - (609) Result from the sale of shareholdings in companies and property, plant and equipment 1,644 - - 1,644 Operating income 2,593 732 31 3,356 Gain (Loss) on monetary position 255 80 (47) 288 Financial income 148 27 - 175 Financial expenses (20) (10) - (30) Other financial results (135) 824 - 689 Financial results, net 248 921 (47) 1,122 Income (loss) before income tax 2,841 1,653 (16) 4,478 - Income tax (973) (486) - (1,459) Profit (loss) of the year from discontinued operations 1,868 1,167 (16) 3,019 Other comprehensive income (loss) Income tax (67) - - (67) Reclasification from exchange differences on translation 223 223 Exchange differences on translation 156 - - 156 Other comprehensive income of the year from discontinued operations 312 - - 312 Total comprehensive income (loss) of the year from discontinued operations 2,180 1,167 (16) 3,331 Oil and gas Refining y distribution Eliminations Total Total income (loss) of the year from discontinued operations attributable to: Owners of the company 1,778 1,167 (16) 2,929 Non - controlling interest 90 - - 90 1,868 1,167 (16) 3,019 Total comprehensive income (loss) of the year from discontinued operations attributable to: Owners of the company 2,026 1,167 (16) 3,177 Non - controlling interest 154 - - 154 2,180 1,167 (16) 3,331 As of December 31, 2017: Oil and gas Refining y distribution Eliminations Total Revenue 9,755 27,439 (11,177) 26,017 Cost of sales (9,468) (23,313) 11,211 (21,570) Gross profit 287 4,126 34 4,447 Selling expenses (298) (3,192) - (3,490) Administrative expenses (208) (703) - (911) Exploration expenses (31) - - (31) Other operating income 604 365 - 969 Other operating expenses (294) (484) - (778) Impairment of property, plant and equipment - (1,040) - (1,040) Operating income (loss) 60 (928) 34 (834) Financial income 36 25 - 61 Financial expenses - (27) - (27) Other financial results (375) (20) - (395) Financial results, net (339) (22) - (361) Income before income tax (279) (950) 34 (1,195) Income tax (1,049) 351 - (698) Profit (Loss) of the year from discontinued operations (1,328) (599) 34 (1,893) Other comprehensive income Items that will not be reclassified to profit or loss Remeasurements related to defined benefit plans (11) 26 - 15 Income tax 67 (9) - 58 Items that may be reclassified to profit or loss Exchange differences on translation (606) - - (606) Other comprehensive (loss) income of the year from discontinued operations (550) 17 - (533) Total comprehensive (loss) income of the year from discontinued operations (1,878) (582) 34 (2,426) Oil and gas Refining y distribution Eliminations Total Total (loss) income of the year from discontinued operations attributable to: Owners of the company (1,503) (599) 34 (2,068) Non - controlling interest 175 - - 175 (1,328) (599) 34 (1,893) Total comprehensive (loss) income of the year from discontinued operations attributable to: Owners of the company (1,804) (582) 34 (2,352) Non - controlling interest (74) - - (74) (1,878) (582) 34 (2,426) As of December 31, 2016: Oil and gas Refining y distribution Eliminations Total Revenue 5,159 13,759 (5,926) 12,992 Cost of sales (4,077) (12,547) 6,157 (10,467) Gross profit 1,082 1,212 231 2,525 Selling expenses (132) (1,590) - (1,722) Administrative expenses (53) (48) - (101) Exploration expenses (86) - - (86) Other operating income 494 964 (792) 666 Other operating expenses (1,378) (206) 792 (792) Operating income (loss) (73) 332 231 490 Financial income 80 13 - 93 Financial expenses (21) (19) - (40) Other financial results (90) (84) - (174) Financial results, net (31) (90) - (121) (Loss) Income before income tax (104) 242 231 369 Income tax (50) (84) (83) (217) (Loss) Profit of the year from discontinued operations (154) 158 148 152 Other comprehensive income Items that will not be reclassified to profit or loss Remeasurements related to defined benefit plans (150) 29 - (121) Income tax 46 (11) - 35 Items that may be reclassified to profit or loss Exchange differences on translation 221 - - 221 Other comprehensive income of the year from discontinued operations 117 18 - 135 Total comprehensive (loss) income of the year from discontinued operations (37) 176 148 287 Oil and gas Refining y distribution Eliminations Total Total (loss) income of the year from discontinued operations attributable to: Owners of the company (133) 158 148 173 Non - controlling interest (21) - - (21) (154) 158 148 152 Total comprehensive (loss) income of the year from discontinued operations attributable to: Owners of the company (2) 176 148 322 Non - controlling interest (35) - - (35) (37) 176 148 287 The consolidated statement of cash flows related to discontinued operations is presented below: 12.31.2018 12.31.2017 12.31.2016 Net cash (used in) generated by operating activities (1,726) 3,291 2,902 Net cash used in investing activities - (1,897) (1,238) Net cash generated by (used in) financing activities 1,565 (1,168) (1,726) (Decrease) increase in cash and cash equivalents from discontinued operations (161) 226 (62) Cash and cash equivalents at the beginning of the year 238 142 275 Loss on net monetary position generated by cash and cash equivalents (77) (130) (60) (Decrease) increase in cash and cash equivalents (161) 226 (73) Cash and cash equivalents at the end of the year - 238 142 As of December 31, 2017, the assets and liabilities that comprise the assets held for sale and associated liabilities are: As of December 31, 2017 Oil and gas Refining y distribution Total ASSETS NON-CURRENT ASSETS Property, plant and equipment 11,139 1,652 12,791 Intangible assets 459 154 613 Financial assets at amortized cost 52 - 52 Trade and other receivables 9 - 9 Total non-current assets 11,659 1,806 13,465 CURRENT ASSETS Inventories 226 2,894 3,120 Financial assets at fair value through profit and loss 1,005 - 1,005 Trade and other receivables 629 - 629 Cash and cash equivalents 238 - 238 Total current assets 2,098 2,894 4,992 Total assets classified as held for sale 13,757 4,700 18,457 LIABILITIES NON-CURRENT LIABILITIES Defined benefit plans 143 86 229 Deferred tax liabilities 837 - 837 Provisions 1,361 77 1,438 Total non-current liabilities 2,341 163 2,504 CURRENT LIABILITIES Trade and other payables 576 - 576 Salaries and social security payable 69 - 69 Defined benefit plans 3 9 12 Income tax and minimum notional income tax provision 38 - 38 Taxes payables 173 - 173 Provisions 75 52 127 Total current liabilities 934 61 995 Liabilities associated to assets classified 3,275 224 3,499 5.3. Interest in subsidiaries, associates and joint ventures 5.3.1 Subsidiaries information Unless otherwise indicated, the capital stock of the subsidiaries consists of common shares, each granting the right to one vote. The country of the registered office is also the principal place where the subsidiary develops its activities. 12.31.2018 12.31.2017 Company Country Main activity Direct and indirect participation % Direct and indirect participation % Corod Venezuela Oil 100.00% 100.00% CPB Argentina Generation 100.00% 100.00% CPB Energía S.A. Argentina Generation 100.00% 100.00% Ecuador TLC S.A. Ecuador Oil 100.00% 100.00% Edenor (2) Argentina Distribution of energy 52.18% 51.54% Enecor S.A. Argentina Transportation of electricity 69.99% 69.99% HIDISA Argentina Generation 61.00% 61.00% HINISA Argentina Generation 52.04% 52.04% PACOSA Argentina Distributor 100.00% 100.00% PBI Bolivia Investment 100.00% 100.00% PELSA (1) Argentina Oil - 58.88% Petrobras Energía Colombia Gran Cayman Colombia Oil 100.00% 100.00% Petrobras Energía Ecuador Gran Cayman Investment 100.00% 100.00% Petrobras Energía Operaciones Ecuador Ecuador Oil 100.00% 100.00% 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% PPSL Spain Investment 100.00% 100.00% TGU Uruguay Gas transportation 100.00% 100.00% Transelec Argentina Investment 100.00% 100.00% Trenerec Energía Bolivia Bolivia Investment 100.00% - Trenerec Ecuador Investment 100.00% - (1) (2) 5.3.1.1 Summarised financial information for each subsidiary that has significant non-controlling interest Non-controlling interests in subsidiaries are not significant for the Company, except for Edenor with 51.76% equity interest and PELSA with 58.88% equity interest, whose sale was perfected on April 4, 2018 (Note 5.2.1). Edenor The subsidiary is registered in Argentina, which is also the place where it develops its activities. i. Summary statement of financial position 12.31.2018 12.31.2017 Non Current Total non current assets 63,284 57,134 Borrowings 7,192 6,189 Other non current liabilities 17,853 18,381 Total non current liabities 25,045 24,570 Current Cash and cash equivalents 28 122 Other current assets 13,680 13,626 Total current assets 13,708 13,748 Borrowings 1,077 105 Other current liabilities 19,901 18,413 Total current liabilities 20,978 18,518 Total equity 30,969 27,794 Non-controlling interest 14,938 13,470 i. Summary statement of comprehensive income (loss) 12.31.2018 12.31.2017 12.31.2016 Revenue 55,954 39,603 25,827 Depreciation (2,561) (2,148) (2,147) Interest income 672 454 385 Interest expense (4,968) (2,567) (2,589) Profit for the year before tax 6,175 5,591 388 Income tax (1,877) (510) (147) Profit for the year 4,298 5,081 241 Other comprehensive loss (47) (14) (7) Total comprehensive profit of the year 4,251 5,067 234 Income of the year attributable to non-controlling interest 2,073 2,462 117 Other comprehensive income of the year attributable to non-controlling interest (22) (7) (3) Comprehensive income of the year attributable to non-controlling interest 2,051 2,455 114 i. Summary statement of cash flow 12.31.2018 12.31.2017 12.31.2016 Net cash generated by operating activities 9,621 7,361 4,975 Net cash used in investing activities (8,328) (8,509) (4,072) Net cash used in (geneted by) financing activities (2,097) 867 (947) Decrease in cash and cash equivalents (804) (281) (44) Cash and cash equivalents at the begining of the year 122 382 238 Exchange differences in cash and cash equivalents 156 - (9) Result from exposure to inlfation 554 21 292 Cash and cash equivalents at the end of the year 28 122 477 5.3.2 Investments in associates and joint ventures The following table presents the main activity and information from the financial statements used for valuation and percentages of participation in associates and joint ventures: Information about the issuer Main activity Date Share capital Profit (loss) of the year/period Equity Direct and indirect participation % Associates Refinor Refinery 09.30.2018 92 (113) 968 28.50% Joint ventures CIESA (1) Investment 12.31.2018 639 5,871 16,748 50% Citelec (2) Investment 12.31.2018 556 1,531 7,481 50% Greenwind Generation 12.31.2018 5 (824) (408) 50% (1) therefore, the Company has an indirect participation of 25.50% in TGS. (2) The details of the balances of investments in associates and joint ventures is as follows: 12.31.2018 12.31.2017 Disclosed in non-current assets Associates Refinor 960 1,094 Oldelval - 379 OCP 1,305 - Other 10 1 2,275 1,474 Joint ventures CIESA 9,755 7,606 Citelec 3,303 2,534 Greenwind - 261 13,058 10,401 15,333 11,875 Disclosed in non-current liabilities Greenwind (1) 153 - 153 - (1) The Company provides financial assistance to this company. The following tables show the breakdown of the result from investments in associates and joint ventures: 12.31.2018 12.31.2017 12.31.2016 Associates Oldelval 116 41 7 Refinor (138) (113) (4) OCP 1,305 - - Other 1 (3) - 1,284 (75) 3 Joint ventures CIESA 2,793 949 191 Citelec 801 1,012 92 Greenwind (414) (73) - 3,180 1,888 283 4,464 1,813 286 The evolution of investments in associates and joint ventures is as follows: Note 12.31.2018 12.31.2017 12.31.2016 At the beginning of the year 11,875 9,608 2,136 Reclassifications (1) - 457 - Increase for subsidiaries acquisition - - 7,254 Dividends 17 (706) - Other decreases 13.1 (434) (3) (68) Share of profit 4,464 1,813 286 Other comprehensive loss (19) - At the end of the year 15,180 11,875 9,608 (1) Corresponds to the deconsolidation for sale of the interest in Greenwind. 5.3.3 Investment in CIESA-TGS TGS’s Arbitral claim On May 8, 2015, the Secretariat of the International Court of Arbitration of the International Chamber of Commerce notified TGS regarding the request for arbitration initiated by PAE and Pan American Sur SA (the "claimants") related to the execution of three natural gas processing contracts (for the February 2006 and February 2016 period) between the claimants and TGS that according to the demand, the claimants allege breach of contracts, that would have resulted in a lower allocation of the products obtained. Between April 4 and September 29, 2017, the parties presented their arguments and the Arbitration Testing Hearing took place. The claimed amount reach U$S 306 million as of March 15, 2017 plus interest accrued until the date of actual payment. Finally, on December 15, 2017, the Claimants and TGS submitted their Final Conclusions Memorials. On May 28, 2018, the International Court of Arbitration of the International Chamber of Commerce issued the final award by which it partially acknowledged the claim and ruled that the Company must pay damages to the claimants in the amount of U$S 19 million, plus interest accrued as from May 8, 2015 until the date of actual payment. This payment was made on June 14, 2018 for an amount of $ 553 million (equivalent to U$S 21.3 million). Issuance of Corporate Bonds On May 2, 2018, under the Short- and Medium-Term Corporate Bonds Program for a maximum amount of U$S 700 million approved by the CNV, TGS issued Class 2 corporate bonds for U$S 500 million at an annual 6.75% rate. Collected funds will be destined by TGS to: (i) the repurchase of Class 1 corporate bonds, (ii) the redemption of Class 1 corporate bonds; and (iii) capital expenditures. Acquisition of own shares in TGS In view of the fact that the TGS’ share price does not reflect either the value or the economic reality its assets currently or potentially have, this being detrimental to the interests of its shareholders, and taking into consideration TGS’ strong cash position and fund availability, on May 9, 2018, TGS’ Board of Directors approved the repurchase of own shares in the market, in Argentine pesos, for a maximum amount of $ 1,700 million (in terms of the constitution date). Later, on September 6, 2018, TGS’ Board of Directors approved a program for the repurchase of own shares for a maximum amount of up to $ 1,800 million (in terms of the constitution date) and for a term of 180 calendar days, which terminated on March 5, 2019. The acquisition was made with net realized income, as shown in TGS’ Financial Statements for year ended December 31, 2018. As of December 31, 2018, TGS holds 13,600,780 own shares in its portfolio, which represent 1.71% of its total capital stock. Their market acquisition cost amounted to $ 1,421 million which, in accordance with the provisions of Title IV, Chapter III, article 3.11.c of the Rules, restricts the amount of the retained earnings that TGS may distribute. Vaca Muerta Project The project consists in the construction of a gas collector pipeline that will allow to transport natural gas extracted by natur |
6. RISKS
6. RISKS | 12 Months Ended |
Dec. 31, 2018 | |
Risks | |
RISK | 6.1. CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS The preparation of financial statements requires the Company’s Management to make future estimates and assessments, to apply critical judgment and to establish assumptions affecting the application of accounting policies and the amounts of disclosed assets and liabilities, income and expenses. The applied estimates and accounting judgments are evaluated on a continuous basis and are based on past experiences and other reasonable factors under the existing circumstances. Actual future results might differ from the estimates and evaluations made at the date of preparation of these consolidated financial statements. The estimates which have a significant risk of producing adjustments on the amounts of the assets and liabilities during the following year are detailed below: 6.1.1 Impairment of non-financial 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, international petrochemical product’s price, the regulatory framework for the energy industry (mainly expected price recognition and compensation costs methodology), the projected capital investments and the evolution of the energy demand. The value in use of each CGU is estimated on the basis of the present value of future net cash flows 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. 6.1.2 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. 6.1.3 Provision for contingencies The Company is subject to various claims, lawsuits and other legal proceedings that arise during the ordinary course of its business. The Company’s liabilities with respect to such claims, lawsuits and other legal proceedings cannot be estimated with certainty. Periodically, the Company reviews the status of each contingency and assesses potential financial liability, applying the criteria indicated in Note 4.22, for which elaborates the estimates mainly with the assistance of legal advisors, based on information available to the Management at 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. 6.1.4 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. 6.1.5 Impairment of financial assets The Group is exposed to losses for uncollectible receivables. The Company Management estimates the final collectability of the accounts receivable. The accounting of expected credit losses for trade receivables and other receivables with similar risk characteristics is based on the Company's best estimate of the default risk and the calculation of the expected credit losses rates, based on historical information of the behavior of the Company's clients, current market conditions and forward-looking estimates at the end of each reporting period. In order to estimate collections related to the 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. Future adjustments to the allowance may be necessary if future economic conditions differ substantially from the assumptions used in the assessment for each year. 6.1.6 Actuarial assumptions in defined benefit plans 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. 6.1.7 ENRE Penalties and discounts Edenor considers its applicable accounting policy for the recognition of ENRE penalties and discounts critical because it depends on penalizable events, which are valued on the basis of Edenor’s management best estimate of the expenditure required to settle the present obligation at the date of these financial statements. The balances of ENRE penalties and discounts are adjusted in accordance with the regulatory framework applicable thereto and have been estimated based on the description made in Note 2.3. 6.1.8 Revenue recognition In the distribution of energy business segment, revenue is recognized on an accrual basis upon delivery to customers, which includes the estimated amount of unbilled distribution of electricity at the end of each year. We consider our accounting policy for the recognition of estimated revenue critical because it depends on the amount of electricity effectively delivered to customers which is valued on the basis of applicable tariffs. Unbilled revenue is classified as current trade receivables. In the oil and gas business segment, the fair value of the consideration receivable corresponding to revenues from gas sales to Distributors is recognized based on the volume of gas delivered and the price established by the SE (in accordance with applicable resolutions). 6.1.9 Oil and gas reserves Reserves 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 4.8 and 4.9). 6.1.10 Environmental remediation The costs incurred to limit, neutralize or prevent environmental pollution are only capitalized if at least one of the following conditions is met: (a) such costs relate to improvements in safety; (b) the risk of environmental pollution is prevented or limited; or (c) the costs are incurred to prepare the assets for sale and the book value (which considers those costs) of such assets does not exceed their respective recoverable value. Liabilities related to future remediation costs are recorded when, on the basis of environmental assessments, such liabilities are probable to materialize, and costs can be reasonably estimated. The actual recognition and amount of these provisions are generally based on the Company’s commitment to an action plan, such as an approved remediation plan or the sale or disposal of an asset. The provision is recognized on the basis that a future remediation commitment will be required. The Company measures liabilities based on its best estimation of present value of future costs, using currently available technology and applying current environmental laws and regulations as well as the Company’s own internal environmental policies. 6.1.11 Business Combinations The acquisition method involves the measurement at fair value of the identifiable assets acquired and the liabilities assumed in the business combination at the acquisition date. For the purpose to determine the fair value of identifiable assets, the Company uses the valuation approach considered the most representative for each asset. These include 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. 6.2. FINANCIAL RISK MANAGEMENT 6.2.1 Financial Risk Factors The Company’s activities are subject to several financial risks: market risk (including the exchange rate risk, the interest rate risk and the price risk), credit risk and liquidity risk. Financial risk management is encompassed within the Company’s global policies, there is an integrated risk management methodology, where the focus is not placed on the individual risks of the business units’ operations, but there is rather a wider perspective focused on monitoring risks affecting the whole portfolio. The Company’s risk management strategy seeks to achieve a balance between profitability targets and risk exposure levels. Financial risks are those derived from financial instruments the Company is exposed to during or at the closing of each fiscal year. The Company uses derivative instruments to hedge certain risks when it deems it necessary according to its risk management internal policies. Financial risk management is controlled by the Financial Department, which identifies, evaluates and covers financial risks. Risk management systems and policies are reviewed on a regular basis to reflect changes in market conditions and the Company’s activities, and have been applied consistently during the periods comprised in these financial statements. This section includes a description of the main risks and uncertainties which may adversely affect the Company’s strategy, performance, operational results and financial position. 6.2.1.1 Market risks 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 (sales within the spot market, agreements with CAMMESA and contracts within the MAT) and ii) the sale of gas. Furthermore, as of December 31, 2018, excluding CAMMESA’s regulatory liabilities, approximately 85% of the Company’s consolidated financial debt consisted mainly of long-term borrowings in the international capital market, 99% of which are nominated in U.S. dollar and 93% are subject to a fixed rate. The peso-denominated debt represents approximately 5% of the total debt. Debt maturities in 2018 totaling approximately U$S 300 million were refinanced through financial loans and pre-export finance facilities with different local banks and with short- and medium-term maturities. Additionally, the Company has undertaken 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. Specifically, the Company entered into off shore and on shore agreements euro-denominated related to Genelba’s extension project. These commercial commitments are subject to the risk of variations in the euro’s exchange rate. Taking into consideration that the Company has a net liability position in U.S. dollars, as of December 31, 2018 the Company recorded net foreign exchange losses in the amount of $ 32,048 million. However, considering that the collection of almost all peso-denominated income is indexed to the U.S. dollar and that most debt is denominated in U.S. dollars and has long-term maturities, the devaluation during 2018 is not expected to have a significant impact on the future cancellation of the company’s indebtedness. 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 year ended December 31, 2018, 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 2018, U.S. Dollar currency appreciated by approximately 102% against the Argentine peso, from $ 18.65 in December 2017 to $37.70 in December 2018. In 2018, the global economy was under severe strain. With a higher risk aversion and a generalized increase in the financial pressure on emerging countries, countries in greater need of external financing, such as Argentina, were the most adversely affected. In Argentina, the fiscal adjustment and changes necessary to attain economic recovery did not occur fast enough to guarantee the sustainability of medium- and long-term debt levels, which resulted in decreased access to external credit markets for the country and heightened tension in the domestic exchange market. In June, the Government entered into a three-year stand-by arrangement with the IMF amounting to U$S50 billion, conditional upon the meeting of rigorous fiscal and monetary targets. However, the exchange volatility persisted until the end of September, with the exchange rate reaching a peak of $ 41.25 on September 30, 2018, which forced the BCRA to increase and maintain a 40% reference rate and to deepen monetary contraction policies through interventions in the LEBAC’s secondary market and an increase in minimum reserve requirements. On September 26, an extension of the IMF arrangement to U$S 57 billion, with an accelerated disbursement schedule, was announced. Compared with the previous arrangement, available resources increased by U$S19 billion until the end of 2019, and funds available under the program would no longer be treated as precautionary and would be available for use as budget support. With this new announcement and under the new BCRA’s management, a more restrictive monetary policy was instrumented with the resulting increase in the domestic market’s interest rates and a decrease in the system’s liquidity. With the change in BCRA’s management, the inflation goal was abandoned, and a new monetary-exchange scheme was adopted seeking to maintain a constant monetary base in nominal terms until June 2019 and creating a wide non-intervention exchange zone, with limited intervention outside this band. The goal of this new scheme is to control the demand for dollars by vacuuming all surplus peso liquidity. 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 Other receivables Related parties US$ 38.2 37.600 1,436 1,165 Third parties US$ 129.3 37.500 4,849 1,717 Financial assets at fair value through profit and loss Third parties US$ 3.6 37.500 135 - Total non current assets 6,420 2,882 CURRENT ASSETS Financial instruments Financial assets at fair value through profit and loss Third parties US$ 300.6 37.500 11,272 7,204 Derivative financial instruments Third parties US$ - - 6 Trade and other receivables Related parties US$ 9.9 37.600 372 279 Third parties US$ 180.8 37.500 6,780 8,600 U$ 4,050.9 1.157 4,688 - EUR 0.4 42.840 17 - Cash and cash equivalents US$ 163.6 37.500 6,135 596 EUR 17.3 42.840 741 10 Total current assets 30,005 16,695 Non current assets classified as held for sale US$ - 1,067 Total assets 36,425 20,644 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 37.700 251 185 Borrowings Related parties US$ - - 21 Third parties US$ 1,717.5 37.700 64,750 47,842 Non financial instruments Provisions Third parties US$ 104.8 37.700 3,951 4,317 Taxes payables Third parties US$ 7.7 37.700 290 - Total non current liabilities 69,242 52,365 CURRENT LIABILITIES Financial instruments Trade and other payables Related parties US$ 2.8 37.600 105 59 Third parties US$ 132.5 37.700 4,995 6,867 EUR 4.3 43.160 186 741 CHF - - - 18 SEK 1.0 4.200 4 71 Borrowings Third parties US$ 306.4 37.700 11,551 5,875 Derivative financial instruments Third parties US$ 1.3 37.700 49 - Non financial instruments Salaries and social security payable Third parties US$ 0.3 37.700 11 4 2 - Taxes payables Third parties US$ 5.9 37.700 222 28 Provisions Related parties US$ - 37.600 - 585 Third parties US$ 18.1 37.700 682 413 Total current liabilities 17,807 14,661 Liabilities associated to assets classified as held for sale US$ - - - 1,897 Total liabilities 87,049 68,923 Net Position Liability (50,624) (48,279) (1) The exchange rates correspond to December 31, 2018 released by the National Bank of Argentine for U.S. dollars (U$S), euros (EUR), Swiss francs (CHF) and Norwegian kroner (SEK). For balances with related parties, the Exchange rate used is the average. 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 $5,588 million and $ 4,746 million in the 2018 and 2017 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 12.6 to these financial statements: Increase (decrease) of the result for the year Financial assets 12.31.2018 12.31.2017 Shares 47 29 Government securities 1,123 741 Investment funds 400 1,416 Variation of the result of the year 1,570 2,186 Cash flow and fair value interest rate risk The management of the interest rate risk seeks to reduce financial costs and limit the Company’s exposure to interest rate increases. Indebtedness at variable rates exposes the Company to the interest rate risk on its cash flows due to the possible volatility they may experience. Indebtedness at fixed rates exposes the Company to the interest rate risk on the fair value of its liabilities, since they may be considerably higher than variable rates. As of December 31, 2018, excluding CAMMESA’s regulatory liabilities, approximately 6% of the indebtedness was subject to variable interest rates. Approximately 14% of the indebtedness at variable rates is denominated in pesos, mainly at the Private Badlar rate plus an applicable margin, except for CAMMESA financing. 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. The following chart shows the breakdown of the Company’s borrowings classified by interest rate and the currency in which they are denominated: 12.31.2018 12.31.2017 Fixed interest rate: Argentinian pesos 550 3,352 U.S dollar 70,149 49,858 Subtotal loans granted at a fixed interest rate 70,699 53,210 Floating interest rates: Argentinian pesos 4,074 5,320 U.S dollar 4,950 3,112 Subtotal loans granted at a floating interest rate 9,024 8,432 Non interest accrued U.S dollar 1,165 1,029 Argentinian pesos 1,202 768 Subtotal no interest accrued 2,367 1,797 Total borrowings 82,090 63,439 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 $ 208 million. 6.2.1.2 Credit risk The Company establishes individual credit limits according to the limits defined by the Board of Directors and approved by the Financial Department based on internal or external ratings. The Company makes constant credit assessments on its customers’ financial capacity, which minimizes the potential risk for bad debt losses. The credit risk represents the exposure to possible losses resulting from the breach by commercial or financial counterparties of their obligations taken on with the Company. This risk stems mainly from economic and financial factors or a possible counterparty default. The credit risk is associated with the Company’s commercial activity through customer trade receivables, as well as available funds and deposits in banking and financial institutions. The Company, in its ordinary course of business and in accordance with its credit policies, grants credits to a large customer base, mainly large sectors of the industry, including petrochemical companies, natural gas distributors, electricity large users and electricity distributors. As of December 31, 2018, the Company’s trade receivables, without considering Edenor, totaled $ 15,798 million, out of which 78% are short-term receivables and the remaining 22% 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 52% 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 $ 1,536 million as of December 31, 2017 to $ 1,971 million as of December 31, 2018, mainly due to the tariff increase during the fiscal year (Note 2.3). 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. The inability to collect the accounts receivable in the future could have an adverse effect on the Company’s results of operations and its financial position, which, in turn, could have an adverse effect on the Company’s ability to repay loans, including payment of the Corporate Notes. The Company applies the simplified approach of IFRS 9 to measure the expected credit losses trade receivables and other receivables in accordance with the policy described in Note 4.10.4. The expected credit loss on trade receivables and financial assets as of December 31, 2018 amounts to $ 1,562 million (Note 12.2) and was determined based on credit loss rates calculated for days past due detailed below: Undue 30 days 60 days 90 days 120 days 150 days 180 days + 180 days Generation 0.04% 0.09% 2.62% 3.39% 9.37% 13.56% 19.82% 28.88% Oil and Gas 2.20% 4.42% 11.11% 20.42% 42.85% 47.32% 49.20% 56.32% Distribution of energy 8% 8% 12% 19% 26% 59% 69% 69% Petrochemicals 0.03% 0.08% 1.41% 4.98% 11.52% 20.36% 24.91% 25.24% Holding 0.96% 1.25% 2.03% 2.85% 19.86% 26.41% 32.95% 32.97% Loss allowance evolution as of December 31, 2018: it is detailed in Note 12.2. The Company’s maximum exposure to credit risk is based on the book value of each financial asset in the financial statements. On the basis of the change in an assumption, while holding all other assumptions constant, a 5% increase / decrease in the estimated trade receivables’ uncollectibility rate would result in $ 60 million decrease / increase in fiscal year’s results. 6.2.1.3 Liquidity risk The liquidity risk is associated with the Company’s capacity to finance its commitments and conduct its business plans with stable financial sources, as well as with the indebtedness level and the financial debt maturities profile. The cash flow projection is made by the Financial Department. The Company management supervises updated projections on liquidity requirements to guarantee the sufficiency of cash and liquid financial instruments to meet operating 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 covena |
7. SEGMENT INFORMATION
7. SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2018 | |
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: Electricity Generation Electricity Distribution Oil and Gas results corresponding to the divestment mentioned in Note 5.2.1 as discontinued operations Refining and Distribution results corresponding to the divestment mentioned in Note 5.2.2 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, 2018 Generation Distribution Oil and gas Refining & Petrochemicals Holding and others Eliminations Consolidated Revenue 22,763 55,954 17,261 - 12,748 1,354 - 110,080 Intersegment sales 62 - 2,377 - - - (2,439) - Cost of sales (10,274) (42,839) (10,822) - (12,602) (4) 2,380 (74,161) Gross profit (loss) 12,551 13,115 8,816 - 146 1,350 (59) 35,919 Selling expenses (54) (5,033) (721) (159) (484) (1) 1 (6,451) Administrative expenses (1,535) (2,872) (2,110) - (212) (1,022) - (7,751) Exploration expenses - - (45) - - - - (45) Other operating income 405 322 5,320 281 205 309 - 6,842 Other operating expenses (640) (1,648) (4,304) - (752) (210) 28 (7,526) Impairment of property, plant and equipment and intangible assets (7) - - - (1,188) - - (1,195) Share of profit (loss) from joint ventures and associates (414) 2 1,421 (138) - 3,593 - 4,464 Income from the sale of companies - - 1,052 - - - - 1,052 Operating profit (loss) 10,306 3,886 9,429 (16) (2,285) 4,019 (30) 25,309 Gain (Loss) on monetary position 8,789 8,504 4,037 (15) 1,850 464 67 23,696 Financial income 1,949 672 594 - 50 519 (33) 3,751 Financial expenses (3,218) (4,977) (2,978) - (566) (237) 32 (11,944) Other financial results (13,772) (1,879) (19,288) 32 (1,481) 4,023 - (32,365) Financial results, net (6,252) 2,320 (17,635) 17 - (147) 4,769 66 (16,862) Profit (loss) before income tax 4,054 6,206 (8,206) 1 (2,432) 8,788 36 8,447 Income tax (107) (1,865) 2,124 (32) 471 (1,249) - (658) Profit (loss) for the year from continuing operations 3,947 4,341 (6,082) (31) (1,961) 7,539 36 7,789 Profit (loss) for the year from discontinued operations - - 1,868 1,167 - - (16) 3,019 Profit (loss) for the year 3,947 4,341 (4,214) 1,136 (1,961) 7,539 20 10,808 Depreciation and amortization 2,488 2,611 3,472 20 222 3 - 8,816 Consolidated profit and loss information as of December 31, 2018 Generation Distribution Oil and gas Refining & Petrochemicals Holding and others Eliminations Consolidated Total (loss) profit attributable to: Owners of the Company 3,734 2,273 (4,306) 1,136 (1,961) 7,539 20 8,435 Non - controlling interest 213 2,068 92 - - - - 2,373 Consolidated statement of financial position as of December 31, 2018 Assets 53,256 80,423 46,638 2,319 5,767 30,572 (5,140) 213,835 Liabilities 39,738 46,801 48,003 1,070 7,456 8,254 (5,170) 146,152 Additional consolidated information as of December 30, 2018 Increases in property, plant and equipment 8,911 8,550 7,221 50 140 199 - 25,071 Consolidated profit and loss information as of December 31, 2017 Generation Distribution Oil and gas Refining & Petrochemicals Holding and others Eliminations Consolidated Revenue 13,250 39,603 16,695 - 11,825 635 - 82,008 Intersegment sales 61 - 707 - - - (768) - Cost of sales (7,335) (30,117) (11,695) - (10,915) (27) 750 (59,339) Gross profit (loss) 5,976 9,486 5,707 - 910 608 (18) 22,669 Selling expenses (161) (3,568) (600) - (471) - 24 (4,776) Administrative expenses (1,189) (2,505) (2,053) - (622) (1,118) 6 (7,481) Exploration expenses - - (71) - - - - (71) Other operating income 725 158 4,123 - 103 505 (6) 5,608 Other operating expenses (357) (1,261) (1,410) - (363) (501) - (3,892) Share of profit (loss) from joint ventures and associates (73) 10 41 (113) - 1,948 - 1,813 Operating profit (loss) 4,921 2,320 5,737 (113) (443) 1,442 6 13,870 Gain (Loss) on monetary position 654 5,457 (687) (276) 58 6,272 - 11,478 Financial income 1,453 441 209 - 16 286 (72) 2,333 Financial expenses (2,618) (2,607) (2,932) - (387) (278) 72 (8,750) Other financial results (1,265) 19 (3,493) - (241) 1,206 - (3,774) Financial results, net (1,776) 3,310 (6,903) (276) (554) 7,486 - 1,287 Profit (loss) before income tax 3,145 5,630 (1,166) (389) (997) 8,928 6 15,157 Income tax (137) (449) 893 - 728 (50) - 985 Profit (loss) for the year from continuing operations 3,008 5,181 (273) (389) (269) 8,878 6 16,142 Profit for the year from discontinued operations - - (1,328) (599) - - 34 (1,893) Profit (loss) for the year 3,008 5,181 (1,601) (988) (269) 8,878 40 14,249 Depreciation and amortization 2,029 2,198 3,273 - 152 87 - 7,739 Consolidated profit and loss information as of December 31, 2017 Generation Distribution Oil and gas Refining & Petrochemicals Holding and others Eliminations Consolidated Total profit (loss) attributable to: Owners of the Company 2,841 2,719 (2,422) (988) (269) 8,878 40 10,799 Non - controlling interest 167 2,462 821 - - - - 3,450 Consolidated statement of financial position as of December 31,2017 Assets 42,018 74,362 43,510 8,847 5,328 46,761 (7,571) 213,255 Liabilities 12,556 43,958 16,748 5,314 3,552 64,445 (7,588) 138,985 Additional consolidated information as of December 31, 2017 Increases in property, plant and equipment 10,380 8,483 5,295 255 182 192 - 24,787 Consolidated profit and loss information as of December 31, 2016 Generation Distribution of energy Oil and gas Refining & Distribution Petrochemicals Holding and others Eliminations Consolidated Revenue 9,744 25,826 10,281 - 5,301 110 - 51,262 Intersegment sales 32 - 1,514 - - 59 (1,605) - Cost of sales (5,906) (25,253) (8,585) - (4,666) (6) 1,565 (42,851) Gross profit (loss) 3,870 573 3,210 - 635 163 (40) 8,411 Selling expenses (148) (3,379) (720) - (233) (11) - (4,491) Administrative expenses (840) (2,288) (1,352) - (33) (3,057) 59 (7,511) Exploration expenses - - (199) - - - - (199) Other operating income 116 3,218 4,001 - - 1,184 (129) 8,390 Other operating expenses (220) (913) (1,746) - (556) (596) 135 (3,896) Share of profit (loss) in joint ventures - - 7 (4) - 283 - 286 Income from the sale of subsidiaries and financial assets - - - - - 1,015 - 1,015 Operating profit (loss) 2,778 (2,789) 3,201 (4) (187) (1,019) 25 2,005 Gain (Loss) on monetary position 977 4,307 1,017 11 (51) (491) - 5,770 Financial income 1,269 385 218 - 4 222 (354) 1,744 Financial expenses (1,586) (2,589) (1,543) - - (2,791) 355 (8,154) Other financial results 481 (87) 47 - (6) 74 (4) 505 Financial results, net 1,141 2,016 (261) 11 (53) (2,986) (3) (135) Profit (loss) before income tax 3,919 (773) 2,940 7 (240) (4,005) 22 1,870 Income tax (736) 1,015 (672) - 65 1,931 - 1,603 Profit (loss) for the year from continuing operations 3,183 242 2,268 7 (175) (2,074) 22 3,473 Profit for the year from discontinued operations - - (156) 159 - - 149 152 Profit (loss) for the year 3,183 242 2,112 166 (175) (2,074) 171 3,625 Depreciation and amortization 1,407 2,147 3,419 - 74 55 - 7,102 Consolidated profit and loss information as of December 31, 2016 Generation Distribution of energy Oil and gas Refining & Distribution Petrochemicals Holding and others Eliminations Consolidated Total profit (loss) attributable to: Owners of the Company 3,204 125 1,458 166 (175) (2,074) 171 2,875 Non - controlling interest (21) 117 654 - - - - 750 Accounting criteria used by the subsidiaries to measure results, assets and liabilities of the segments is consistent with that used in the consolidated financial statements. Transactions between different segments are conducted under market conditions. Assets and liabilities are allocated based on the segment’s activity. |
8. REVENUE
8. REVENUE | 12 Months Ended |
Dec. 31, 2018 | |
Revenue [abstract] | |
REVENUE | 12.31.2018 12.31.2017 12.31.2016 Sales of energy to the Spot Market 12,229 8,869 5,097 Sales of energy by contract 10,483 4,304 4,623 Other sales 51 77 24 Generation subtotal 22,763 13,250 9,744 Energy sales 55,690 39,328 25,593 Right of use of poles 190 213 195 Connection and reconnection charges 74 62 38 Distribution subtotal 55,954 39,603 25,826 Oil, Gas and liquid sales 17,123 15,766 10,034 Other sales 138 929 247 Oil and gas subtotal 17,261 16,695 10,281 Administrative services sales 1,347 627 106 Other sales 7 8 4 Holding and others subtotal 1,354 635 110 Petrochemicals sales 12,748 11,825 5,301 Petrochemicals subtotal 12,748 11,825 5,301 Total revenue 110,080 82,008 51,262 Revenue is recognised: 1) At a point in time, that is the effective delivery of the energy, the product or the provision of connection or reconnection services for a total amount of $ 95,844 million, $ 74,492 million and $ 46,939 million as of December 31, 2018, 2017 and 2016, respectively; 2) Over time in case of power availability, technical assistance services and right to use poles for a total of $ 14,236 million, $ 7,516 million and $ 4,323 million as of December 31, 2018, 2017 and 2016, respectively. |
9. COST OF SALES
9. COST OF SALES | 12 Months Ended |
Dec. 31, 2018 | |
Cost Of Sales | |
COST OF SALES | 12.31.2018 12.31.2017 12.31.2016 Inventories at the beginning of the year 4,266 6,191 558 Plus: Charges for the year Incorporation of inventories from acquisition of companies - - 5,850 Purchases of inventories, energy and gas 46,175 32,903 16,765 Salaries and social security charges 6,807 7,602 7,295 Benefits to personnel 218 267 162 Accrual of defined benefit plans 150 276 284 Works contracts, Fees and compensation for services 3,686 3,174 2,379 Property, plant and equipment depreciations 7,766 7,342 6,757 Intangible assets amortization 273 53 59 Transport of energy 155 128 24 Consumption of materials 2,406 1,091 825 Penalties (1) 2,093 425 5,025 Maintenance 908 688 774 Canons and Royalties 2,782 2,110 1,273 Environmental control 193 105 70 Rental and insurance 502 430 369 Surveillance and security 209 230 201 Taxes, rates and contributions 183 109 96 Other 558 486 276 Subtotal 75,064 57,419 48,484 Less: Inventories at the end of the year (5,169) (4,271) (6,191) Total cost of sales 74,161 59,339 42,851 (1) In 2017, includes $ 720 million of recover by penalties (Note 2.3.4) |
10. OTHER ITEMS OF THE STATEMEN
10. OTHER ITEMS OF THE STATEMENT OF COMPREHENSIVE INCOME | 12 Months Ended |
Dec. 31, 2018 | |
Other Items Of Statement Of Comprehensive Income | |
OTHER ITEMS OF THE STATEMENT OF COMPREHENSIVE INCOME | 10.1 SELLING EXPENSES 12.31.2018 12.31.2017 12.31.2016 Salaries and social security charges 972 1,007 1,019 Accrual of defined benefit plans 16 22 28 Fees and compensation for services 1,126 963 973 Compensation agreements 81 221 332 Property, plant and equipment depreciations 322 127 164 Taxes, rates and contributions 1,244 1,137 726 Communications 270 289 273 Penalties 1,052 434 385 Net impairment losses on financial assets (Note 4.1.1.2) 1,067 418 497 Transport 211 137 61 Other 90 21 33 Total selling expenses 6,451 4,776 4,491 10.2 ADMINISTRATIVE EXPENSES 12.31.2018 12.31.2017 12.31.2016 Salaries and social security charges 3,044 2,898 2,984 Benefits to the personnel 206 205 112 Accrual of defined benefit plans 30 220 181 Fees and compensation for services 2,548 2,032 2,583 Compensation agreements 115 754 499 Directors' and Syndicates' fees 173 155 138 Property, plant and equipment depreciations 455 217 181 Consumption of materials 149 99 81 Maintenance 88 77 70 Transport and per diem 82 63 53 Rental and insurance 212 220 243 Surveillance and security 171 151 109 Taxes, rates and contributions 317 145 77 Communications 74 74 63 Institutional advertising and promotion 49 89 61 Other 38 82 76 Total administrative expenses 7,751 7,481 7,511 10.3 EXPLORATION EXPENSES 12.31.2018 12.31.2017 12.31.2016 Geological and geophysical expenses 17 27 39 Decrease in unproductive wells 28 44 160 Total exploration expenses 45 71 199 10.4 OTHER OPERATING INCOME AND EXPENSES Other operating income Note 12.31.2018 12.31.2017 12.31.2016 Compensation for transaction agreemnet in Ecuador 5.6 3,721 - - Recovery of doubtful accounts 7 154 162 Surplus Gas Injection Compensation 866 3,820 4,117 Commissions on municipal tax collections 77 52 44 Services to third parties 503 313 230 Profit for property, plant and equipment sale 118 7 192 Dividends received 29 56 13 Recognition of income - provisional remedies Note MEyM No 2016-04484723 - - 2,074 Income recognition on account of the RTI - SE Res. No. 32/15 - - 958 Higher costs recognition - SE Res. No. 250/13 and subsequent Notes - - 185 Onerous contract (Ship or pay) - - 317 Reversal of contingencies provision 140 915 11 Other 1,381 291 87 Total other operating income 6,842 5,608 8,390 Other operating expenses Provision for contingencies (1,320) (765) (962) Decrease in property, plant and equipment (217) (38) (109) Allowance for uncollectible tax credits (1) (27) (61) Tax on bank transactions (1,136) (1,035) (929) Other expenses FOCEDE - - (31) Cost for services provided to third parties (57) (62) (68) Compensation agreements - (80) (230) Donations and contributions (82) (62) (37) Institutional relationships (114) (105) (92) Extraordinary Canon (117) (511) (774) Contingent consideration - (304) - Onerous contract (Ship or Pay) (265) (142) - Tax contingencies in Ecuador 5.6 (2,605) - - Other (1,612) (761) (603) Total other operating expenses (7,526) (3,892) (3,896) Other operating income – Recovery of contingencies and tax charges – 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, during 2017 fiscal year, a net gain after income tax effects of $ 558 million . Other operating income - 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. As of the date of issuance of these financial statements, the Company has collected U$S 23.9 million from the insurance companies. 10.5. FINANCIAL RESULTS Finance income Note 12.31.2018 12.31.2017 12.31.2016 Commercial interest 2,230 1,605 1,381 Financial interest 1,270 540 142 Other interest 251 188 221 Total finance income 3,751 2,333 1,744 Finance expenses Commercial interest (2,957) (1,679) (2,159) Fiscal interest (318) (415) (160) Financial interest (1) (7,922) (6,107) (5,630) Other interest (549) (387) (6) Taxes and bank commissions - - (76) Other financial expenses (198) (162) (123) Total financial expenses (11,944) (8,750) (8,154) Gain on net monetary position 23,696 11,478 5,770 Other financial results Foreign currency exchange difference, net (32,048) (5,819) (1,649) Changes in the fair value of financial instruments 2,415 2,324 2,368 Discounted value measurement (2,713) (213) (138) Discounted value measurement - asset retirement obligation accretion (79) (69) (68) Results for the repurchase of corporate bonds 59 - - Other financial results 1 3 (8) Total other financial results (32,365) (3,774) 505 Total financial results, net (16,862) 1,287 (135) (1) 10.6 INCOME TAX AND MINIMUM NOTIONAL INCOME TAX The breakdown of income tax charge is: 12.31.2018 12.31.2017 12.31.2016 Current tax 1,465 2,061 2,159 Deferred tax (713) (2,708) (3,412) Other comprehensive income 19 - (32) Difference in the estimate of previous fiscal year income tax and the income return (113) (456) (11) Mininum notional income tax - - (307) Direct charges for income tax - 118 - Income tax expense (benefit) 658 (985) (1,603) Below is a reconciliation between income tax expense and the amount resulting from application of the tax rate on the income before taxes: 12.31.2018 12.31.2017 12.31.2016 Profit before tax 8,447 15,157 1,870 Current tax rate 30% 35% 35% Result at the tax rate 2,534 5,305 655 Share of profit of joint ventures and associates (125) (4,403) (99) Non-taxable results (740) (2,235) (1,545) Non-deductible cost 18 322 Non-deductible provisions - 201 260 Other 80 19 309 Gain (Loss) on monetary position (434) 2,476 (863) Effect of tax rate change in deferred tax (983) (746) - Mininum notional income tax - - (307) Difference in the estimate of previous fiscal year income tax and the income tax statement 165 (741) 27 Deferred tax not previously recognized - (1,183) (40) Deferred tax assets not recognized 143 - - Income tax expense (benefit) 658 (985) (1,603) As of December 31, 2018 and 2017 consolidated accumulated tax losses amount to $ 6,651 million and $ 7,357 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 12.31.2018 12.31.2017 2013 2018 - 1 2014 2019 - 1 2015 2020 98 15 2016 2021 667 1,010 2017 2022 161 1,389 2018 2023 1,050 - 1,976 2,416 Unrecognized deferred assets (1) - Recognized Tax loss-carryforwards 1,975 2,416 |
11. NON-FINANCIAL ASSETS AND LI
11. NON-FINANCIAL ASSETS AND LIABILITIES | 12 Months Ended |
Dec. 31, 2018 | |
Non-financial Assets And Liabilities | |
NON-FINANCIAL ASSETS AND LIABILITIES | 11.1. PROPERTY, PLANT AND EQUIPMENT Original values Type of good At the beginning Translation effect Impairment Increases Transfers Decreases At the end Land 818 - - 2 - - 820 Buildings 7,497 - - 20 332 (35) 7,814 Equipment and machinery 36,569 5 (244) 32 3,244 - 39,606 High, medium and low voltage lines 36,429 - - 381 1,595 (344) 38,061 Substations 13,471 - - 113 188 (3) 13,769 Transforming chamber and platforms 7,532 - - 32 354 (59) 7,859 Meters 7,516 - - 18 356 - 7,890 Wells 18,580 - - 26 3,892 (1,324) 21,174 Mining property 8,910 - - 995 164 - 10,069 Vehicles 641 - - 192 (4) (16) 813 Furniture and fixtures and software equipment 2,169 - - 268 98 (3) 2,532 Communication equipments 535 - - 3 16 - 554 Materials and spare parts 1,068 - - 216 (49) (13) 1,222 Distribution storage center 332 - - - 31 - 363 Petrochemical industrial complex 2,287 - (1,837) - 108 - 558 Work in progress 17,155 - - 22,623 (10,255) - 29,523 Advances to suppliers 1,081 - - 150 (70) (439) 722 Other goods 168 - - - - - 168 Total at 12.31.2018 162,758 5 (2,081) 25,071 - (2,236) 183,517 Total at 12.31.2017 164,176 (430) - 24,787 (139) (25,636) 162,758 (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 Impairment For the year At the end At the end At 12.31.2017 Land - - - - - 820 818 Buildings (2,544) 35 - (294) (2,803) 5,011 4,953 Equipment and machinery (12,126) - 120 (2,454) (14,460) 25,146 24,443 High, medium and low voltage lines (11,250) 247 - (1,169) (12,172) 25,889 25,179 Substations (3,571) 1 - (404) (3,974) 9,795 9,900 Transforming chamber and platforms (1,940) 23 - (243) (2,160) 5,699 5,592 Meters (2,698) 1 - (304) (3,001) 4,889 4,818 Wells (10,165) - - (1,922) (12,087) 9,087 8,415 Mining property (3,512) - - (993) (4,505) 5,564 5,398 Vehicles (441) 16 - (167) (592) 221 200 Furniture and fixtures and software equipment (1,489) 2 - (341) (1,828) 704 680 Communication equipments (357) - - (21) (378) 176 178 Materials and spare parts (57) - - (11) (68) 1,154 1,011 Distribution storage center (74) - - (19) (93) 270 258 Petrochemical industrial complex (834) - 773 (195) (256) 302 1,453 Work in progress - - - - - 29,523 17,155 Advances to suppliers - - - - - 722 1,081 Other goods (129) - - (6) (135) 33 39 Total at 12.31.2018 (51,187) 325 893 (8,543) (58,512) 125,005 Total at 12.31.2017 (46,227) 5,349 - (10,309) (51,187) 111,571 (1) Includes $ 2,623 million corresponding to discontinued operations for 2017. Edenor’s direct own costs capitalized in the book value of property, plant and equipment during the year ended December 31, 2018 and 2017 amounted to $ 1,021 million and $ 870 million respectively. Borrowing costs capitalized in the book value of property, plant and equipment during the year ended December 31, 2018 and 2017 amounted to $ 282 million and $ 602 million, respectively. 11.1.1 Impairment of Property, Plant and Equipment in the Petrochemicals segment The recoverability assessment of Petrochemicals segment’s assets resulted in the recognition of an impairment of $ 1,188 million as of December 31, 2018 as a consequence of the fall in this segment’s margins resulting from a sustained increase in operating costs, mainly impacted by the cost of raw material processed in the Catalytic Reform unit, and the drop in international reference prices. Cash flows were prepared based on estimates on the future behavior of certain variables that are sensitive in the determination of the recoverable value, which is measured as the value in use, including the following: (i) reference prices for products; (ii) demand projections per type of product; (iii) costs evolution and; (iv) macroeconomic variables such as inflation and exchange rates, among others. Key assumptions used in the calculation of the recoverable value as of December 31, 2018 are as follows: - Gross margin 7% - Discount rate (WACC) 11.8% - International Average Styrene Price 1,138 u$s/tn - Average gasoline 87 octane price 2.06 u$s/gallon As regards these assumptions, the Company’s management has determined the estimated gross margin based on past yields and its market growth expectations (including projections of demand, prices and costs); the discount rate used reflects specific risks associated with the Petrochemicals segment. The Company has conducted a sensitivity analysis of the recoverable value of the segment regarding: i) discount rate: a 1% increase or decrease in the discount rate would imply a 10% decrease or increase in the recoverable value, respectively, ii) international average styrene price: a 2% increase or decrease in the international styrene price would imply a 10% increase or decrease in the recoverable value, respectively and iii) average gasoline 87 octane price: a 1% increase or decrease in the gasoline 87 octane price would imply a 7% increase or decrease in the recoverable value, respectively. 11.2 INTANGIBLE ASSETS Original values Type of good At the beginning Increase Impairment Decrease At the end Concession agreements 10,267 - - - 10,267 Goodwill 1,309 - - - 1,309 Intangibles identified in acquisitions of companies 264 6 (7) - 263 Total at 12.31.2018 11,840 6 (7) - 11,839 Total at 12.31.2017 11,937 - - (97) 11,840 Depreciation Type of good At the beginning For the year (1) At the end Concession agreements (5,416) (259) (5,675) Goodwill - - - Intangibles identified in acquisitions of companies (70) (14) (84) Total at 12.31.2018 (5,486) (273) (5,759) Total at 12.31.2017 (5,372) (114) (5,486) (1) Includes $ 61 million corresponding to discontinued operations for 2017 year. Net book values Type of good At the end At 12.31.2018 Concession agreements 4,592 4,851 Goodwill 1,309 1,309 Intangibles identified in acquisitions of companies 179 194 Total at 12.31.2018 6,080 Total at 12.31.2017 6,354 11.3 DEFERRED TAX ASSETS AND LIABILITIES, INCOME TAX AND MINIMUM NOTIONAL INCOME TAX The composition of the deferred tax assets and liabilities is as follows: 12.31.2017 Profit (loss) (1) Other comprehensive income (loss) 12.31.2018 Tax loss-carryforwards 2,416 (441) - 1,975 Trade and other receivables 175 289 - 464 Derivative financial instruments - - - - Financial assets at fair value through profit and loss 18 (16) - 2 Trade and other payables 1,745 210 - 1,955 Salaries and social security payable - 56 - 56 Defined benefit plans 384 (98) 41 327 Provisions 1,096 105 - 1,201 Taxes payable 249 (36) - 213 Liabilities associated to assets classified as held for sale 542 (542) - - Other 67 8 - 75 Deferred tax asset 6,692 (465) 41 6,268 Property, plant and equipment (16,687) 4,089 - (12,598) Investments in companies (1,962) 1,328 (67) (701) Intangible assets (108) (7,178) - (7,286) Trade and other receivables (997) 723 - (274) Financial assets at fair value through profit and loss (89) (233) - (322) Borrowings (201) 79 - (122) Assets classified as held for sale (1,241) 1,241 - - Other (165) (74) - (239) Deferred tax liabilities (21,450) (25) (67) (21,542) 12.31.2016 Reclasification to held for sale Profit (loss) Other comprehensive income (loss) 12.31.2017 Tax loss-carryforwards 1,736 - 680 - 2,416 Trade and other receivables 357 (9) (173) - 175 Derivative financial instruments - - - - - Financial assets at fair value through profit and loss - - 18 - 18 Trade and other payables 2,071 - (326) - 1,745 Salaries and social security payable - - - - - Defined benefit plans 666 (93) (184) (5) 384 Provisions 3,173 (508) (1,569) - 1,096 Taxes payable 413 - (164) - 249 Liabilities associated to assets classified as held for sale - 610 (68) - 542 Other 232 - (165) - 67 Deferred tax asset 8,648 - (1,951) (5) 6,692 Property, plant and equipment (23,565) 1,395 5,483 - (16,687) Investments in companies (2,449) - 554 (67) (1,962) Intangible assets (542) - 434 - (108) Trade and other receivables (1,568) - 571 - (997) Financial assets at fair value through profit and loss (176) - 87 - (89) Borrowings (112) - (89) - (201) Assets classified as held for sale - (1,395) 154 - (1,241) Other (6) - (159) - (165) Deferred tax liabilities (28,418) - 7,035 (67) (21,450) 12.31.2015 Increase for subsidiaries acquisition Profit (loss) Other comprehensive income (loss) 12.31.2016 Tax loss-carryforwards 79 - 1,657 - 1,736 Trade and other receivables 131 169 57 - 357 Derivative financial instruments - - - Financial assets at fair value through profit and loss 20 - (20) - - Trade and other payables 826 - 1,245 - 2,071 Salaries and social security payable - - - Defined benefit plans 270 324 25 47 666 Provisions 332 2,612 229 - 3,173 Taxes payable 122 722 (431) - 413 Liabilities associated to assets classified as held for sale - - - Other 57 213 (38) - 232 Deferred tax asset 1,837 4,040 2,724 47 8,648 Property, plant and equipment (13,823) (8,525) (1,217) - (23,565) Inventories - - - Investments in companies (2,439) (10) (2,449) Intangible assets (568) (141) 167 - (542) Trade and other receivables (660) (512) (396) - (1,568) Financial assets at fair value through profit and loss (122) (101) 47 - (176) Borrowings (62) (82) 32 - (112) Assets classified as held for sale - - - Other (5) (40) 39 - (6) Deferred tax liabilities (15,240) (11,840) (1,338) - (28,418) 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: 12.31.2018 12.31.2017 Deferred tax asset 80 6,692 Deferred tax liabilities (15,354) (21,450) Deferred tax liabilities, net (15,274) (14,758) 11.4 INVENTORIES 12.31.2018 12.31.2017 Materials and spare parts 3,536 3,067 Advances to suppliers 71 211 In process and finished products 1,516 945 Stock crude oil 46 43 Total 5,169 4,266 11.5 PROVISIONS Note 12.31.2018 12.31.2017 Non Current Provisions for contingencies 4,674 5,121 Asset retirement obligation 770 1,355 Environmental remediation 13 22 Other provisions 42 51 5,499 6,549 Current Provisions for contingencies 658 190 Asset retirement obligation 65 224 Environmental remediation 147 188 Onerous contract (Ship or pay) 5.6 - 576 Other provisions 1 1 871 1,179 12.31.2018 For contingencies Asset retirement obligation For environmental remediation At the beginning of the year 5,311 1,579 210 Increases 4,013 1,391 208 Reclasifications - (677) - Decreases (904) (190) (184) Gain on net monetary position (1,965) (677) (74) Reversal of unused amounts (1,123) (591) - At the end of the year 5,332 835 160 12.31.2017 For contingencies Asset retirement obligation For environmental remediation At the beginning of the year 7,500 3,430 642 Increases 1,627 1,053 162 Reclasifications (347) (27) 27 Reclasification to liabilities associated to assets classified as held for sale - (1,292) (272) Gain on net monetary position (1,404) (695) (123) Decreases (1,461) (276) (223) Reversal of unused amounts (604) (614) (3) At the end of the year 5,311 1,579 210 12.31.2016 For contingencies Asset retirement obligation For environmental remediation At the beginning of the year 831 122 - Increases 998 1,330 444 Increase for subsidiaries acquisition 7,047 2,558 497 Gain on net monetary position (1,230) (525) (96) Decreases (146) (55) (203) At the end of the year 7,500 3,430 642 11.5.1 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. 11.5.2 Asset retirement obligation 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. 11.5.2 Provision for legal proceedings The Company (directly or indirectly through subsidiaries) is a party to several commercial, tax and labor proceedings and claims that arise in the ordinary course of its business. In determining a proper level of provision, the Company has considered its best estimate mainly with the assistance of legal and tax advisors. The determination of estimates may change in the future due to new developments or unknown facts at the time of evaluation of the provision. As a consequence, the adverse resolution of the evaluated proceedings and claims could exceed the established provision. The Company has recorded provisions for labor, civil and commercial complaints brought against the Company corresponding to atomized claims with individual unsubstantial amounts, as well as charges for judicial costs and expenses which, as of December 31, 2018, amount to $ 3.603 million. We hereinafter detail the nature of significant judicial proceedings for which provisions have been recorded as of December 31, 2018: - Relevant Customs Summary Proceedings - Gasoline Exports 11.6 INCOME TAX AND MINIMUM NOTIONAL INCOME TAX LIABILITY 12.31.2018 12.31.2017 Non current Income tax, net of witholdings and advances 1,034 1,252 Minimum notional income tax, net of witholdings and advances - 22 Total non current 1,034 1,274 Current Income tax, net of witholdings and advances 930 1,299 Minimum notional income tax, net of witholdings and advances 154 93 Total current 1,084 1,392 Income tax Pampa As of December 31, 2018 Pampa, HIDISA and HINISA 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 $ 1,034 million including compensatory interest and was disclosed in the line “Income tax liability and minimum notional income tax non-current”. Minimun Notional Income tax The Company and certain 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 2016, 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. From AFIP’s validation to the said precedent, through General Instruction 2/2017, the Company and its subsidiaries have resolved not to file a declaratory of relief as from 2017 fiscal year. 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 2015 and 2017 year, CTLL 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 and 2011. Additionally, favorable decisions have been obtained in other subsidiaries. During December 2016, the Fiscal authority 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. 11.7 TAX LIABILITIES 12.31.2018 12.31.2017 Non current Value added tax 160 323 Sales tax 33 25 Payment plans 60 192 Extraordinary Canon 289 - Total non current 542 540 Current Value added tax 786 777 Municipal, provincial and national contributions 130 588 Payment plans 53 90 Municipal taxes 108 102 Tax withholdings to be deposited 337 288 Stamp tax payable 10 15 Royalties 202 204 Extraordinary Canon 374 816 Other 52 21 Total current 2,052 2,901 11.8 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, 2018 and 2017, the most relevant actuarial information corresponding to the described benefit plans is the following: 12.31.2018 Present value of the obligation Fair value of plan assets Net liability at the end of the year Liabilities at the beginning 1,760 (117) 1,643 Items classified in profit or loss Current services cost 75 - 75 Cost for interest 339 (31) 308 Contributions paid (187) - (187) Items classified in other comprehensive Actuarial losses (gains) 225 (65) 160 Exchange differences on translation 4 - 4 Benefit payments (130) - (130) (Gain) loss on net monetary position (586) 50 (536) At the end 1,500 (163) 1,337 12.31.2017 Present value of the obligation Present value of assets Net liability at the end of the year Liabilities at the beginning 2,189 (286) 1,903 Items classified in profit or loss Current services cost 95 - 95 Cost for interest 457 (38) 419 Past services cost 46 - 46 Items classified in other comprehensive Actuarial losses (gains) (32) 16 (16) Exchange differences on translation 52 (26) 26 Benefit payments (87) 11 (76) Contributions paid - (11) (11) Reclasification to liabilities associated to assets classified as held for sale (420) 165 (255) (Gain) loss on net monetary position (540) 52 (488) At the end 1,760 (117) 1,643 12.31.2016 Present value of the obligation Present value of assets Net liability at the end of the year Liabilities at the beginning 769 - 769 Items classified in profit or loss Current services cost 83 - 83 Cost for interest 412 (26) 386 Items classified in other comprehensive Actuarial losses (gains) 145 10 155 Benefit payments (151) 4 (147) Contributions paid - (4) (4) (Gain) loss on net monetary position (271) 10 (261) Increase for subsidiries acquisition 1,202 (280) 922 At the end 2,189 (286) 1,903 As of December 31, 2018, net liability by type of plan, is as follows: a) $ 146 million corresponding to Indemnity plan; b) $ 404 million corresponding to Compensatory plan and c) $ 368 million corresponding to Collective agreements. As of December 31, 2017, net liability by type of plan, is as follows: a) $ 261 million corresponding to Indemnity plan; b) $ 405 million corresponding to Compensatory plan and c) $ 454 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. 12.31.2018 Less than one year 162 One to two years 94 Two to three years 111 Three to four years 100 Four to five years 92 Six to ten years 449 Significant actuarial assumptions used were as follows: 12.31.2018 12.31.2017 Discount rate 5% 5% Salaries increase 1% 1% Average inflation 27% 21% The following sensitivity analysis shows the effect of a variation in the discount rate and salaries increase on the obligation amount: 12.31.2018 Discount rate: 4% Obligation 1,637 Variation 137 10% Discount rate: 6% Obligation 1,383 Variation (117) (9%) Salaries increase: 0% Obligation 1,425 Variation (75) (6%) Salaries increase: 2% Obligation 1,587 Variation 87 6% The sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. Therefore, the presented analysis may not be representative of the actual change in the defined benefit obligation. The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period. 11.9 SALARIES AND SOCIAL SECURITY PAYABLE 12.31.2018 12.31.2017 Non current Seniority - based bonus 148 171 Early retirements payable 15 6 Total non current 163 177 Current Salaries and social security contributions 918 855 Provision for vacations 711 991 Provision for gratifications and annual bonus for efficiency 1,087 1,327 Early retirements payable 10 7 Total current 2,726 3,180 |
12. FINANCIAL ASSETS AND LIABIL
12. FINANCIAL ASSETS AND LIABILITIES | 12 Months Ended |
Dec. 31, 2018 | |
Financial Assets And Liabilities | |
FINANCIAL ASSETS AND LIABILITIES | 12.1 FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT AND LOSS 12.31.2018 12.31.2017 Non current Shares 422 286 Total non current 422 286 Current Government bonds 11,234 7,418 Shares 44 - Investment funds 3,995 14,158 Total current 15,273 21,576 12.2 Trade and Other receivables Note 12.31.2018 12.31.2017 Non Current CAMMESA Receivable 2,647 4,234 Other 853 9 Trade receivables, net 3,500 4,243 Non Current Tax credits 503 241 Allowance for tax credits (11) (21) Related parties 17 1,860 1,172 Prepaid expenses 28 30 Financial credit 30 55 Guarantee deposits 1 136 Contractual receivables in Ecuador 6 - 1,474 Receivable for sale of property, plant and equipment 112 99 Natural Gas Surplus Injection Promotion Program 2,671 - Credit with RDSA 20 766 - Other 61 15 Other receivables, net 6,021 3,201 Total non current 9,521 7,444 Current Receivables from energy distribution sales 8,392 9,029 Receivables from MAT 1,035 644 CAMMESA 4,943 4,263 CAMMESA Receivable 574 622 Receivables from oil and gas sales 2,923 1,135 Receivables from refinery and distribution sales 218 1,414 Receivables from petrochemistry sales 2,544 1,364 Related parties 17 384 251 Other 139 201 Allowance for doubtful accounts (1,266) (822) Trade receivables, net 19,886 18,101 Current Tax credits 1,020 1,905 Advances to suppliers 83 16 Advances to employees 8 37 Related parties 17 201 317 Prepaid expenses 61 102 Receivables for non-electrical activities 539 322 Financial credit 209 123 Guarantee deposits 475 1,555 Natural Gas Surplus Injection Promotion Program 2,667 3,827 Insurance to recover 212 298 Expenses to be recovered 417 548 Credits for the sale of property, plant and equipment 783 573 Other 213 778 Allowance for other receivables (285) (235) Other receivables, net 6,603 10,166 Total current 26,489 28,267 Due to the short-term nature of trade and other receivables, its book value is not considered to differ from its fair value. For non-current trade and other receivables, fair values do not significantly differ from book values, with the exception of the items expressly mentioned below: Compensations pending settlement and/or payment for the year 2017 under Natural Gas Injection Promotion Programs On May 2, 2018, the Group filed with the Ministry of Energy an application form to adhere to the program for the cancellation of compensations pending settlement under the natural gas injection encouragement programs approved by MINEM Resolution No. 97/18 (Note 2.4.2) expressing its consent and acceptance of the terms and scope of such resolution. The resolution provides an estimated compensation in the amount of U$S 148 million for the Group, payable in thirty monthly consecutive installments as from January 1, 2019. The compensable credit balance pending collection as of December 31, 2017 amounts to $ 2,364 million. As of December 31, 2018, the Company has reassessed the present value of the credit taking into consideration collection dates provided for in the resolution; as a result of such reassessment, the recorded credit amounts to $ 5.338 million. On February 21, 2019, SGE Resolution No. 54/19 established that cancellations will be implemented through the delivery of public debt securities. Gas Distributors’ receivables As regards receivables resulting from differences between the price stipulated in gas sale agreements and that recognized in the distributors’ final tariffs during the April-September 2018 period for approximately U$S 34 million, as of December 31, 2018 and taking into consideration that as of the issuance of these financial statements the Company has not adhered to the collection procedure established by PEN Decree No. 1,053/18 (see Note 2.4.2.2), the Company has estimated the value of this credit claim considering the collection scenario resulting from the scheme provided for by PEN Decree No. 1,053/18 mentioned above, as well as the judicial collection scenario; as a result of such estimate, the related receivables amounts to $ 923 million. Unaffected CAMMESA’s receivables The Company holds unaffected receivables from CAMMESA for a total nominal value plus accrued interest of $ 3,564 million and $ 4,049 million as of December 31, 2018 and 2017, respectively corresponding to LVFVDs under SE Resolution No. 406/2003 (2004-2006 and 2008-2013 periods) and Trust under SE Resolution No. 95/2013 (2013-2016 periods). As of December 31, 2017 the credit balance amounts to $ 2,452 million. As of December 31, 2018 and taking into consideration that no bids have been placed under the tenders launched pursuant to PEN Decree No. 882/2017 accepting as payment LVFVDs issued under Resolution No. 406/2003 and other provisions passed by the SE, the Company has reassessed the receivable present value by weighting the possibility of receivable assignments to a third-party with projects accepting LVFCDs as payment, as well as the possibility of recovering the receivables through the judicial claim; as a result of such reassessment, the related receivables amounts to $ 668 million. The movements in the allowance for the impairment of trade receivables are as follows: Note 12.31.2018 12.31.2017 12.31.2016 At the beginning 4.1 975 790 218 Allowance for impairment 1,266 480 499 Utilizations (389) (76) (59) Reversal of unused amounts (31) (2) (46) Gain on net monetary position (555) (179) (92) Reclasification to assets held for sale - (191) - Increase for purchases of subsidiaries - - 270 At the end of the year 1,266 822 790 The movements in the allowance for the impairment of other receivables are as follows: Note 12.31.2018 12.31.2017 12.31.2016 At the beginning 4.1 217 372 655 Allowance for impairment 248 55 97 Decreases - (25) (24) Increase for subsidiaries acquisition - - 154 (Gain) loss on net monetary position (115) 15 (153) Reversal of unused amounts (54) (161) (357) At the end of the year 296 256 372 12.3 CASH AND CASH EQUIVALENTS 12.31.2018 12.31.2017 Cash 17 44 Banks 3,133 483 Time deposits 5,947 652 Total 9,097 1,179 12.4 BORROWINGS Non Current Note 12.31.2018 12.31.2017 Financial borrowings 9,743 8,785 Corporate bonds 54,927 40,993 CAMMESA financing 4,519 5,017 Related parties 17 - 21 69,189 54,816 Current Financial borrowings 11,811 7,527 Corporate bonds 934 1,091 CAMMESA financing 127 - Related parties 17 29 5 12,901 8,623 (1) Net of the repurchase of Corporate bonds Class I maturity 2027 of Pampa Energía for a nominal value of U$S 8.85 million and Edenor’s Corporate bonds 2022 for a nominal value of U$S 0.4 million as of December 31, 2018. As of December 31, 2018 and 2017, the fair values of the Company’s non-current borrowings (Corporate Bonds) amount approximately to $ 49,026 million and $ 45,156 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. The maturities of the Company’s borrowings (excluding finance lease liabilities) and its exposure to interest rates are as follow: Fixed rate 12.31.2018 31.12.2017 Less than one year 9,032 6,891 One to two years 4,109 812 Two to five years 10,732 11,087 Up to five years 46,825 34,421 70,698 53,211 Floating rates Less than one year 2,680 877 One to two years 1,809 901 Two to five years 2,106 3,780 Up to five years 2,430 2,873 9,025 8,431 Non interest accrues Less than one year 1,189 855 One to two years 31 - Two to five years 1,147 784 Up to five years - 158 2,367 1,797 The movements in the borrowings are as follows: 12.31.2018 12.31.2017 12.31.2016 At the beginning 63,439 47,855 19,821 Proceeds from borrowings 9,250 47,130 35,918 Payment of borrowings (9,057) (27,650) (12,654) Accrued interest 6,766 5,396 5,740 Payment of borrowings' interests (5,004) (4,072) (3,212) Net foreign currency exchange difference 46,895 8,546 3,723 Increase for subsidiaries acquisition - - 14,155 Costs capitalized in property, plant and equipment 282 546 516 Decrease through shares of subsidiaries (1) - - (2,493) Decrease through offsetting with other credits (2) - - (4,125) Decrease through offsetting with trade receivables - (6) (512) Gain on net monetary position (29,974) (14,301) (7,250) Repurchase and redemption of corporate bonds (448) (47) (1,888) Other financial results (59) 42 116 At the end of the year 82,090 63,439 47,855 During the years ended December 31, 2018 and 2017, 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 U$S 13.2 million and U$S 15.1 million, respectively. Due to these debt-repurchase and/or redemptions, the Company and its subsidiaries recorded a loss of $ 59.4 million in the year ended December 31, 2018, disclosed under the line “Result from repurchase of corporate bonds” within Other financial results. During 2018, the Company had debt maturities of approximately U$S 300 million that were refinanced through financial loans and pre-financing of exports with different local banks and with short and medium term maturities. Subsequently, after the end of 2018 fiscal year (mainly during the month of February 2019), the Company paid a total of U$S 24 million at maturity, net of refinancing, pre-paid a total of U$S 105 million, and refinanced a total of U$S 36 million with financial institutions, with a short-term maturity. As of the date of issuance of these financial statements, the Company is in compliance with the covenants established in its indebtedness 12.4.1 Details of borrowings: Type of instrument Company Currency Residual value Interest Rate Expiration Book value as of 12.31.2018 Corporate bonds : 2022 CB Edenor US$ 166 Fixed 10% 2022 6,360 Class 4 CB PAMPA US$ 34 Fixed 6% 10/30/2020 1,291 Class E CB PAMPA ARS 607 Fixed Badlar 11/13/2020 607 T Series CB (1) PAMPA US$ 741 Fixed 8% 1/24/2027 28,404 Class 1 CB (2) PAMPA US$ 500 Fixed 7% 7/21/2023 19,228 55,890 Regulatory : CAMMESA 2014 Agreement PAMPA ARS 855 Variable CAMMESA (4) 2,158 CAMMESA Mapro PAMPA ARS 174 Variable CAMMESA (3) 254 CAMMESA Mapro CPB ARS 1,085 Variable CAMMESA (3) 2,234 4,646 Financial loans : PAMPA U$S 17,116 Fixed Between 2.9% and 7.5% Feb-2018 to May-2021 17,357 PAMPA U$S 1,746 Variable 6% + Libor 1,732 PAMPA ARS 550 Fixed Between 22% y 22.25% Sep-2019 to Oct-2019 561 Edenor U$S 1,885 Fixed Libor + 4.27% 10/11/2020 1,904 21,554 82,090 Type of instrument Company Currency Residual value Interest Rate Expiration Book value as of 12.31.2017 Corporate bonds : 2022 CB Edenor US$ 172 Fixed 10% 2022 4,903 Class 4 CB PAMPA US$ 34 Fixed 6% 10/30/2020 942 Class E CB PAMPA ARS 575 Variable Badlar 11/13/2020 871 Class A CB PAMPA ARS 282 Variable Badlar 10/5/2018 439 T Series CB PAMPA (1) US$ 500 Fixed 7% 7/21/2023 14,013 Class 1 CB PAMPA (2) US$ 750 Fixed 8% 1/24/2027 20,942 42,110 Regulatory : CAMMESA 2014 Agreement PAMPA ARS 855 Variable CAMMESA (4) 2,321 CAMMESA Mapro PAMPA ARS 140 Variable CAMMESA (3) 285 CAMMESA Mapro CPB ARS 1,088 Variable CAMMESA (3) 2,411 5,017 Financial loans : PAMPA U$S 352 Fixed Between 2.9% and 7.5% Feb-2018 to May-2021 9,786 PAMPA U$S 63 Variable 6% + Libor Sep-2018 to May-2024 1,719 PAMPA ARS 2,270 Fixed Between 22% y 22.25% Aug-2018 to Oct-2019 3,417 Edenor U$S 50 Fixed Libor + 4.27% 10/11/2020 1,390 16,312 63,439 (1) On January 24, 2017, the Company issued Class 1 Corporate Bonds for a face value of U$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. (2) 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. 19/17), the Maintenance Remuneration was discontinued and it was defined that the balance of the financing will be repayable through the discount of U$S 1 / MWh for the energy generated until its total cancellation. (3) On December 1, 2014, CTLL and CAMMESA signed a Financing and Assignment of Loan Agreement in order to finance the works of the 2014 Agreement Project. The financing will be canceled, at Pampa option, through a payment in cash or through offsetting with CAMMESA receivables of the Company and other subsidiaries, 36 months as from the month following the commercial commissioning of the last generating unit making up the Projects. 12.4.2 Global Corporate Bonds Program The Company has the following programs in place: (i) a simple CBs Program (non-convertible into shares) for a maximum amount of U$S500 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 U$S 2,000 million, which was authorized by CNV Resolution No. 18,426, effective until December 29, 2021. The Company’s Shareholders’ Meeting held on April 7, 2017 approved the issuance of CBs convertible into common shares and American Depositary Shares (“ADRs”) for a face value of U$S 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 5.2.2) and of certain oil assets (Note 5.2.1), 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. 12.4.3 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 U$S 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. 12.5. TRADE AND OTHER PAYABLES Non Current 12.31.2018 12.31.2017 Customer contributions 112 118 Funding contributions for substations 33 89 Customer guarantees 141 149 Trade payables 286 356 ENRE Penalties and discounts 5,097 5,738 Loans (mutuums) with CAMMESA 2,282 2,782 Compensation agreements 251 183 Liability with FOTAE 207 281 Payment agreement with ENRE 37 108 Other 2 9 Other payables 7,876 9,101 Total non current 8,162 9,457 Current Note 12.31.2018 12.31.2017 Suppliers 9,371 12,826 CAMMESA 11,909 11,214 Customer contributions 15 28 Discounts to customers 37 55 Funding contributions substations 17 12 Customer advances 244 303 Related parties 17 245 117 Other 19 19 Trade payables 21,857 24,574 ENRE Penalties and discounts 1,836 425 Related parties 17 11 17 Advances for works to be executed 14 21 Compensation agreements 481 830 Payment agreements with ENRE 65 93 Other creditors 305 303 Other 187 392 Other payables 2,899 2,081 Total current 24,756 26,655 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, 2018 and 2017 amount to $ 108 million and $ 141 million, respectively. The fair values are determined based on estimated discounted cash flows in accordance with a market rate for this type of transactions. This fair value is classified as level 3. The book value of the compensation agreements approximates their fair value given the valuation characteristics (Note 4.17). 12.6 FINANCIAL INSTRUMENTS BY CATEGORY The following chart presents financial instruments by category: As of December 31, 2018 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 34,217 122 34,339 1,671 36,010 Financial assets at amortized cost Government securities 1,330 - 1,330 - 1,330 Financial assets at fair value through profit and loss Government securities - 11,234 11,234 - 11,234 Shares - 466 466 - 466 Investment funds - 3,995 3,995 - 3,995 Derivative financial instruments - 3 3 - 3 Cash and cash equivalents 9,097 - 9,097 - 9,097 Total 44,644 15,820 60,464 1,671 62,135 Liabilities Trade and other liabilities 22,833 576 23,409 9,509 32,918 Borrowings 82,090 - 82,090 - 82,090 Derivative financial instruments - 49 49 - 49 Total 104,923 625 105,548 9,509 115,057 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 31,761 870 32,631 3,080 35,711 Financial assets at amortized cost Government securities 16 - 16 - 16 Trusts 21 - 21 - 21 Financial assets at fair value through profit and loss Government securities - 7,418 7,418 - 7,418 Shares - 286 286 - 286 Investment funds - 14,158 14,158 - 14,158 Derivative financial instruments - 6 6 - 6 Cash and cash equivalents 1,179 - 1,179 - 1,179 Total 32,977 22,738 55,715 3,080 58,795 Liabilities Trade and other liabilities 26,789 2,783 29,572 6,540 36,112 Borrowings 63,439 - 63,439 - 63,439 Total 90,228 2,783 93,011 6,540 99,551 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, 2018 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 3,555 196 3,751 - 3,751 Interest expense (10,902) - (10,902) (844) (11,746) Foreign exchange, net (32,653) 3,260 (29,393) (3,156) (32,549) Results from financial instruments at fair value - 2,415 2,415 - 2,415 Discounted value measurement (2,713) - (2,713) - (2,713) Other financial results 363 - 363 (79) 284 Total (42,350) 5,871 (36,479) (4,079) (40,558) 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 2,076 257 2,333 - 2,333 Interest expense (8,173) - (8,173) (415) (8,588) Foreign exchange, net (7,138) 1,850 (5,288) (531) (5,819) Results from financial instruments at fair value - 2,324 2,324 - 2,324 Discounted value measurement (213) - (213) - (213) Other financial results (167) - (167) (61) (228) Total (13,615) 4,431 (9,184) (1,007) (10,191) 12.7 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, 2018 and 2017: As of December 31, 2018 Level 1 Level 2 Level 3 Total Assets Financial assets at fair value through profit and loss Government securities 11,234 - - 11,234 Shares 44 - 422 466 Investment funds 3,995 - - 3,995 Derivative financial instruments - 3 - 3 Other receivables 122 - - 122 Total assets 15,395 3 422 15,820 Liabilities Derivative financial instruments - 49 - 49 Total liabilities - 49 - 49 As of December 31, 2017 Level 1 Level 2 Level 3 Total Assets Financial assets at fair value through profit and loss Government securities 7,418 - - 7,418 Trust - - 221 221 Investment funds 14,158 - - 14,158 Derivative financial instruments - 5 - 5 Other receivables 870 - - 870 Total assets 22,446 5 221 22,672 Liabilities Derivative financial instruments - 120 - 120 Total liabilities - 120 - 120 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. |
13. EQUITY COMPONENTS
13. EQUITY COMPONENTS | 12 Months Ended |
Dec. 31, 2018 | |
Equity Components | |
EQUITY COMPONENTS | 13.1 SHARE CAPITAL AND RESERVES 13.1.1 SHARE CAPITAL During the year ended December 31, 2018, the Company acquired the equivalent of 202,929,825 own shares for an amount of $ 11,317 million, in relation to the Company Share Repurchase Program. During the year ended December 31, 2018, the Company repurchased 3,000,000 shares corresponding to the Shared based Compensation Plan in favor of executive employees and other key personnel for an amount of $ 260 million and delivered 173,891 treasury shares in payment for the mentioned Plan (see Note 19.2). On October 2, 2018, the Company’s Extraordinary General Meeting resolved a share capital reduction by the cancellation of 182,820,250 treasury shares acquired as a result of the share repurchase programs, as a result share capital total decreased from $ 2,082,690,514 to $ 1,899,870,264 (1,874,434,580 and 25,435,684 corresponding to outstanding shares and treasury shares, respectively). This reduction was registered by the IGJ on November 28, 2018. In addition, on January 9, 2019, the CNV granted partial cancellation of the related public offer. As of December 31, 2018, treasury shares represent 1.34% of share capital, of which 20,109,575 shares correspond to the Company Share Repurchase Program (see detail below) and 5,326,109 shares correspond to Shared based Compensation Plan in favor of executive employees and other key personnel. Company Share Repurchase Program (the “Program”) In view of the fact that the Company’s share price does not reflect either the value or the economic reality its assets currently or potentially have, this being detrimental to the interests of the Company’s shareholders, and taking into consideration the Company’s strong cash position and fund availability, on April 27, 2018, the Company’s Board of Directors approved the repurchase of portfolio shares for up to U$S 200 million for an initial term of 120 calendar days. On June 22, 2018 the Program was extended by the Board of Directors for an additional maximum amount of up to U$S 200 million for an initial term of 120 calendar days. Under the program, portfolio shares may not exceed, as a whole, the limit of 10% of the capital stock, and may be purchased for a maximum price of $ 50 per common share and U$S 60 per ADR, for the initial program, and $ 62 per common share and U$S 55 per ADR for the program extension. 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. 13.1.2 OTHER RESERVES 13.1.2.1 Acquisition of own ADRs by Edenor As of December 31, 2018, pursuant to the own shares repurchase program approved by its Board of Directors, Edenor acquired at the NYSE a total number of 779,543 ADRs equivalent to 15,590,860 Series B common shares for an amount of $ 1,069 million. As of December 31, 2018, Edenor’s treasury shares amount to 23,385,028. 13.1.2 Acquisition of Edenor’s ADRs by the Company During 2018 year, the Company acquired a total number of 346,270 Edenor’s ADRs, which equal 6,583,320 million Series B common shares, at a U$S 9 million acquisition cost. Additionally, in the month of October 2018, the Company acquired 17,104 Edenor’s ADRs, which equal 342,080 million Series B common shares, at a $13 million acquisition cost. 13.2 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, 2018 and 2017, the Company does not hold any significant potential dilutive shares, therefore there are no differences with the basic earnings (loss) per share. 12.31.2018 12.31.2017 12.31.2016 (Loss) earning for continuing operations attributable to the equity holders of the Company 5,506 12,867 2,651 Weighted average amount of outstanding shares 1,959 1,936 1,736 Basic and diluted (loss) earnings per share from continuing operations 2.8106 6.6462 1.5271 Earning for discontinued operations attributable to the equity holders of the Company 2,929 (2,068) 224 Weighted average amount of outstanding shares 1,959 1,936 1,736 Basic and diluted earnings per share from discontinued operations 1.4952 (1.0682) 0.1290 Total (loss) earning attributable to the equity holders of the Company 8,435 10,799 2,875 Weighted average amount of outstanding shares 1,959 1,936 1,736 Basic and diluted earnings per share 4.3058 5.5780 1.6561 13.3 profit distributions Dividends Pursuant to Law No. 27,430, enacted in December 2017 (Note 2.7), dividends distributed to individuals, undivided estates or beneficiaries residing abroad, derived from profits generated during fiscal years beginning on or after January 1, 2018 through December 31, 2019, are subject to a 7% withholding tax. The distribution of dividends is made based on the Company’s Stand-Alone Financial Statements. |
14. STATEMENT OF CASH FLOWS' CO
14. STATEMENT OF CASH FLOWS' COMPLEMENTARY INFORMATION | 12 Months Ended |
Dec. 31, 2018 | |
Statement Of Cash Flows Complementary Information | |
STATEMENT OF CASH FLOWS' COMPLEMENTARY INFORMATION | 14.1 ADJUSTMENTS TO RECONCILE NET PROFIT (LOSS) TO CASH FLOWS GENERATED BY OPERATING ACTIVITIES Note 12.31.2018 12.31.2017 12.31.2016 Income tax 658 (985) (1,603) Accrued interest 8,254 6,255 7,072 Depreciations and amortizations 9, 10.1 and 10.2 8,816 7,739 7,102 Constitution of allowances, net 10.4 1,061 418 497 Constitution (recovery) of provisions, net 10.4 1,180 (150) 951 Share of profit from joint ventures and associates 5.3 (4,464) (1,813) (286) Income from the sale of associates 5.1 (1,052) - - Accrual of defined benefit plans 9, 10.1 and 10.2 196 518 493 Net exchange differences 10.5 32,048 5,819 1,649 Result from measurement at present value 10.5 2,792 282 138 Changes in the fair value of financial instruments (2,372) (2,324) (2,368) Results from property, plant and equipment sale and decreases 126 56 181 Impairment of property, plant and equipment and intangible assets 1,195 - - Dividends received 10.4 (29) (56) (13) Compensation agreements 10.1 and 10.2 196 1,055 831 Result from the sale of shareholdings in companies and property, plant and equipment 5.1 (1,644) - (1,015) Recognition of income - provisional remedies Note MEyM No. 2016-04484723 - - (2,380) Income recognition on account of the RTI - SE Res. No. 32/15 - - (173) Higher costs recognition - SE Res. No. 250/13 and subsequent Notes - - (887) Onerous contract (Ship or pay) 10.4 265 142 (317) Gain on monetary position 10.5 (23,696) (11,478) (5,770) Other 23 306 84 23,553 5,784 4,186 14.2 CHANGES IN OPERATING ASSETS AND LIABILITIES 12.31.2018 12.31.2017 12.31.2016 Increase in trade receivables and other receivables (6,594) (2,430) 342 (Increase) decrease in inventories (718) (425) 575 Increase in trade payables and other payables 836 385 (632) Increase in deferred income 88 1 (4) Increase (decrease) in salaries and social security payable 511 (55) 151 Decrease in defined benefit plans (130) (115) (462) Increase (Decrease) in tax payables 1,319 (988) 3,392 Decrease in provisions (2,274) (1,803) (494) Constitution of guarantees of derivative financial instruments - - (453) Income tax and minimum notional income tax paid (1,841) (2,119) (927) (Payments) proceeds from derivative financial instruments, net (897) 873 120 Net cash (used in) generated by operating activities from discontinued operations (1,726) 3,291 2,902 Total changes in operating assets and liabilities (11,426) (3,385) 4,510 14.3 SIGNIFICANT NON-CASH TRANSACTIONS 12.31.2018 12.31.2017 12.31.2016 Significant non-cash transactions from continuing operations : Acquisition of property, plant and equipment through an increase in trade payables 639 (3,898) (1,128) Borrowing costs capitalized in property, plant and equipment (282) (602) (880) Decreases of property, plant and equipment through an increase in other receivables 439 - - Decrease in borrowings through offsetting with trade receivables - - (508) Increase in asset retirement obligation provision 1,272 (59) (332) Constitution of guarantee of derivative financial instruments, net through the delivery of financial assets at fair value through profit or loss (819) 718 200 Outstanding receivable for the sale of interests in subsidiaries and financial assets - - (2,521) Decrease in loans through compensation with trade receivables and other receivables - - (2,477) Decrease in loans through compensation with other credits - - (4,098) Collection of other credits through the delivery of government bonds - - 1,055 Significant non-cash transactions from Acquisition of property, plant and equipment through an increase in trade payables - (13) (82) Decrease (increase) in asset retirement obligation provision - 464 (429) Dividends pending collection - 551 - |
15. CONTINGENT LIABILITIES AND
15. CONTINGENT LIABILITIES AND ASSETS | 12 Months Ended |
Dec. 31, 2018 | |
Contingent Liabilities And Assets | |
CONTINGENT LIABILITIES AND ASSETS | We hereinafter detail the nature of significant legal proceedings as of December 31, 2018, not considered as probable by the Company based on the opinion of the Company’s internal and external counselors. 15.1 Labor Claim – Compensatory Plan The Company faces several legal proceedings associated with the Defined Benefit Plan “Compensatory Plan” (see note 11.8). We hereinafter describe the nature of currently-pending labor claims: - Claims by former employees not covered by the plan, seeking their inclusion - Claims on considering that the index (IPC) used to update the plan benefits are ineffective to keep their “constant value”. - Claims on an alleged underfunding of the plan upon the elimination of the Company’s contributions based on earnings. 15.2 Tax claim - Tax on Liquid Fuels and Natural Gas. The AFIP filed a claim in the amount of $54 million against the Company for an alleged omission in the payment of Taxes on Liquid Fuels and Natural Gas during fiscal periods 01/2006 through 08/2011, plus compensatory interest and a penalty of $38 million for such omission. The tax entity supports its claim on the allegation that the tax benefit granted to sales to areas declared exempt by the tax law has been misappropriated. The proceeding is currently being heard before the Federal Tax Court, and the evidentiary period has been completed. 15.3 Environmental claims - The Association of Land Owners of Patagonia (ASSUPA) has brought a complaint for an indefinite amount against the Company and other companies seeking the restoration of the environment to the state prior to the exploration, exploitation, production, storage and transportation of hydrocarbon works conducted by the plaintiffs and the prevention of alleged future environmental impacts on certain areas in the Austral Basin. The National Government and the Provinces of Santa Cruz and Tierra del Fuego have been summoned as third parties. The proceeding is at the complaint answer stage. - ASSUPA has instituted a complaint before the CSJN against 10 companies, including the Company. The National Government and the Provinces of Buenos Aires, La Pampa, Mendoza, Neuquén and Río Negro have been summoned as third parties. The main claim seeks that the plaintiffs should be ordered to redress the alleged environmental damage caused by the hydrocarbon activity developed in the Neuquina Basin and to set up the environmental restoration fund provided for by section 22 of the General Environmental Law. Subsidiarily, and in case restoration is not possible, it seeks the redress of the allegedly sustained collective damages for an amount estimated at U$S54 million based on a PDUN report. The proceeding is in the complaint answer stage. - Beatriz Mendoza and other 16 plaintiffs brought a complaint before the CSJN against the National Government, the Province of Buenos Aires, the Government of the City of Buenos Aires and 44 companies, including the Company, conducting industrial activities along the Matanza-Riachuelo River Basin. The plaintiffs seek compensation for alleged damages sustained as a result of an alleged environmental impact, its cessation, the environmental recomposition and redress, for an estimated amount of U$S500 million for the financing of the Matanza-Riachuelo River Basin Environmental Management Plan aiming at the restoration of the basin. The proceeding is in the third-party summoning stage. - Inertis S.A. Has filed a complaint against the Company for alleged damage to the environment in a lot owned by this company as a result of the activities conducted by the Dock Sud plant seeking the redress of alleged damages for a nominal amount estimated at $1 million and U$S1 million, or the difference between the value of the allegedly affected lot and its valuation. The proceeding is in the evidentiary stage. - Fundación SurfRider Argentina has requested the performance of preliminary proceedings on account of alleged indications of environmental damage in the City of Mar del Plata. The plaintiff seeks the recomposition of the alleged environmental damage having collective impact, or the compensation for the alleged damages caused by all companies owning gas stations in the coastal area of the City of Mar del Plata for an alleged fuel leakage from gas stations’ underground storage tanks into the water, soil and marine system. The Foundation estimates damages in the amount of $200 million. The proceeding is pending the resolution of the admissibility of CSJN’s jurisdiction. - A group of neighbors of the City of Bahía Blanca instituted a complaint before the provincial courts of this city for alleged environmental damage having collective impact against the companies of the petrochemical complex, Consorcio de Gestión Del Puerto de Bahía Blanca and the Province of Buenos Aires. The plaintiffs seek the redress of collective moral injury (estimated at $52 million), the cessation of the alleged damage to the estuary of Bahía Blanca, and a comprehensive restoration to its previous state. In case this is not possible, the plaintiffs subsidiarily seek damages, the beneficiary of which would be the Environmental Compensation Fund. They also request a prohibition to install new industrial activities in the area and the development of a new and efficient industrial waste collection, disposal and treatment system. The proceeding is in the evidentiary stage. - Some neighbors of the Dock Sud area brought a complaint against 14 oil companies, including the Company, petrochemical companies and waste incineration plants located in the Dock Sud Petrochemical Complex for an alleged damage to the environment and alleged individual damage to their goods, health and morale. The proceeding is in the complaint answer stage. - A neighbor of the Province of Salta owning a lot where a joint venture made up of the plaintiffs (the Company and other companies) conducted hydrocarbon activities seeks environmental protection and restoration for alleged damage caused by hydrocarbon prospecting, exploration and/or exploitation activities or, alternatively, a compensation in case such environmental restoration is not possible. The Province of Salta has been summoned as a third party. The proceeding is in the complaint answer stage. - Owners of a lot in the town of Garín, Province of Buenos Aires, seek the performance of preliminary proceedings for alleged indications of damage to the environment in their place of residence which would result from an alleged leakage from the adjacent gas station under the Company’s branding. Preliminary measures are being conducted in this proceeding. - Neighbors of the Province of Neuquén brought a proceeding against the Company for alleged environmental damage resulting from the hydrocarbon exploration, exploitation, transportation and well abandonment activities in which that plaintiff has been taking part. Should this not be feasible, they claim a compensation for alleged damages to support the Environmental Restoration Fund. Additionally, they request the redress of alleged moral damages to be allocated to the Environmental Restoration Fund. The proceeding is in the lawsuit integration stage. - Plaintiffs María Elena Baya de Rudd and David Rudd have filed a complaint against the Company, other companies and the joint venture made up by them for the repair of alleged damages caused in the Estancia Laguna Esperanza lot owned by them and the remediation of alleged environmental damage caused by the exploitation and abandonment of oil wells in the lot. The Company has filed an appeal in this proceeding. - Plaintiff Martinez Lidia and other three plaintiffs claim financial compensation for alleged damage to their health and property caused by the alleged environmental affectation sustained as a result of living next to Puerto General San Martin petrochemical plant (Rosario-Santa Fe). The proceeding is currently in the evidentiary stage. 15.4 Civil and Commercial Claims - The “Consumidores Financieros Asociación Civil Para Su Defensa” claim the nominal amount of U$S3,650 million as compensation for damages, Pampa, Petrolera Pampa S.A. and certain Pampa directors in office during 2016 being co-plaintiffs together with Petroleo Brasileiro S.A. A complaint has been brought against Petrobras Brasil for the depreciation of the share quotation value as a result of the “lava jato operation” and the so-called “Petrolao”, and the plaintiffs claim Pampa, Petrolera Pampa S.A. and the directors’ joint and several liability alleging the acquisition of indirect control in Petrobras Argentina S.A. may have thwarted the enforcement of a possible judgment favorable to the plaintiff (for up to the amount of the price paid by Pampa for the acquisition of control over Petrobras Argentina S.A.). The proceeding is in the integration and complaint answer stage. - The Company was notified of the institution of a collective action in the City of Rio de Janeiro, Brazil, by a lawyer of that nationality, Felipe Machado Caldeira, alleging that Petrobras Brasil has not conducted Petrobras Argentina’s sales process pursuant to a competitive bidding process in accordance with Brazilian laws applicable to mixed public-private firms in Brazil, for a nominal amount of R$1,000 million. In this proceeding, no specific accusation against Pampa has been filed. The proceeding is currently suspended in the integration and complaint answer stage. - Messrs. Candoni, Giannasi, Pinasco and Torriani brought arbitration complaints against the Company before the Buenos Aires Stock Exchange’s Arbitration Court seeking to challenge the price and tender offer for the merger through absorption of Petrobras Argentina S.A. into Pampa Energía S.A. for a nominal amount of $148 million. The complaints have been joined. The Court issued a partial award upholding the challenge under the capital markets law used by the plaintiff to dispute the exchange ratio used in the merger and dismissed the Company’s position, which stated that the proper course of action would be to challenge the shareholders’ meeting pursuant to the Business Organizations Law. The Company filed an appeal against this partial award and filed a motion for appeal and nullity which will be resolved by the Chamber of Appeals in Commercial Matters. - Las Higuerillas S.R.L. brought a judicial proceeding against the Company for the damages allegedly sustained as a result of the early termination of the concession agreement for the exploitation of a gas station for a nominal amount of $9 million. The proceeding is in the evidentiary stage. - Fees associated with the injunction granted in favor of Oil Combustibles: Oil Combustibles’ attorneys claim an increase in their fees assessed by the first-instance judge and ratified by the Chamber of Appeals of Rosario. The Supreme Court of Santa Fe resolved to annul the Camber’s decision and ordered that a new judgment should be passed. A motion for clarification was filed against this judgment before the Supreme Court of Justice, as well as an extraordinary appeal before the CSJN. - Consumidores Financieros Asociación Civil para su Defensa, claimes Edenor: i) the reimbursement of the VAT percentage paid on the illegally “widened” taxable basis due to the incorporation of the National Electrical Energy Fund that distribution companies, the defendants, had not paid this tax when CAMMESA invoiced them the electricity purchased for distribution purposes, ii) the reimbursement of part of the administrative surcharge on “second due date”, in those cases in which payment was made within the time period authorized for such second deadline (14 days) but without distinguishing the effective day of payment, and iii) the application of the “borrowing rate” in case of customer delay in complying with payment obligation, in accordance with the provisions of Law No. 26,361. The Federal Government, the AFIP and the ENRE are summoned as third-party defendants. These proceedings have been joined to those mentioned below. Without prejudice thereto, in the framework of the record of the proceedings, the case has been brought to trial. - Asociación de Defensa de derechos de clientes y consumidores (ADDUC) requested that the Company be ordered by the Court to reduce or mitigate the default or late payment interest rates charged to customers who pay their bills after the first due date, inasmuch as they violate section 31 of Law 24,240, ordering both the non application of pacts or accords that stipulate the interest rates that are being applied to the users of electricity –their unconstitutional nature– as well as the reimbursement of interest amounts illegally collected from the customers of the service from August 15, 2008 through the date on which the defendant complies with the order to reduce interest. It is also requested that the VAT and any other taxes charged on the portion of the surcharge illegally collected be reimbursed. These proceedings have been joined to those mentioned above and have been brought to trial. We hereinafter detail the nature of significant legal proceedings brought by the Company as of December 31, 2018 where the related inflows of economic benefits are estimated to be probable by the Company. 15.5 Administrative claims - CTLL filed a contentious administrative complaint against the National Government for contractual breach during the January 2016-July 2017 period. CTLL claims that CAMMESA’s decision should be reversed regarding the renewal and recognition of costs associated with natural gas supply agreements, and that, susbsidiarily, sustained damages for an amount of U$S28 million should be redressed. - Upon the determination of the expiration of the Veta Escondida area concession granted by the Province of Neuquén, the Company filed a declaratory judgment action to achieve certainty under the original jurisdiction of the Federal Supreme Court of Justice pursuant to section 322 of the Federal Code of Civil and Commercial Procedure. Both parties agreed to suspend the proceeding and settle a solution. Negotiations are currently in progress, and terms have been suspended for 20-day periods renewable until settling the conflict. 15.6 Civil and commercial claims - Edenor seeks to obtain the judicial annulment of the ENRE’s Resolution 32/11 that provided Edenor to: i) be fined in the amount of $ 750 thousand due to its failure to comply with the obligations arising from Section 25, sub-sections a, f and g, of the Concession Agreement and Section 27 of Law No. 24,065, ii) be fined in the amount of $ 375 thousand due to its failure to comply with the obligations arising from Section 25 of the Concession Agreement and ENRE Resolution No. 905/99 and iii) be ordered to pay customers as compensation for the power cuts suffered the following amounts: $ 180 to each small-demand residential customer (T1R) who suffered power cuts that lasted more than 12 continuous hours, $ 350 to those who suffered power cuts that lasted more than 24 continuous hours, and $ 450 to those who suffered power cuts that lasted more than 48 continuous hours. The course of these proceedings is currently suspended due to the fact that an “Agreement of parties” has been entered into with the ENRE. - Edenor’s purpose is to sue for breach of contract due to the Federal Government’s failure to perform in accordance with the terms of the “Agreement on the Renegotiation of the Concession Agreement” (“Acta Acuerdo de Renegociación del Contrato de Concesion” – the “Adjustment Agreement”) entered into with the Company in 2006, and for damages caused as a result of such breach. As of the date of issuance of this report, and by “agreement of the parties”, the procedural time-limits continue to be suspended. 15.7 Tax claims - Income tax refund Pampa, HIDISA, HINISA and CPB have filed several tax refund claims in the amount of $1,167 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. On March 27, 2019, Pampa and CPB have decided to exercise the tax revaluation optional regime in relation to property, plant and equipment as of December 31, 2017, provided for by Title X of Law Nro. 27,430, and must withdraw any judicial or administrative process promoted or to be promoted in relation to the application of inflation adjustment in the income tax. Consequently, Pampa and CPB have formally submitted its withdrawal to the refund rights mentioned above (see Note 23). - Refund on minimum presumed income tax The Company and its predecessor CTLL filed several refund claims before the AFIP on account of the minimum presumed income tax for fiscal periods 2008 and 2009 requesting the refund of $25 million, including the refund of payments timely made and the release of the payment by offsetting against several tax credits. As AFIP didn’t answer the claim, the Company and CTLL brought the tax refund claim before the competent National First-Instance Administrative Litigation Court. 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 collected as of the date of issuance 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. |
16. INVESTMENT COMMITMENTS
16. INVESTMENT COMMITMENTS | 12 Months Ended |
Dec. 31, 2018 | |
Investment Commitments | |
INVESTMENT COMMITMENTS | 16.1 NEW GENERATION PROJECTS Under the National Government’s call for the expansion of the generation offer, the Company participates in the following thermal generation closing projects: 16.1.1 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 June 2019. 16.1.2 2014 Increase of CTLL Availability In August 2011, after postponing the closing to CC’s commissioning in CTLL, the work contractor informed that Siemens, the equipment supplier, had detected design flaws in other steam turbines using the same technology, so it decided to remove the last vane wheel of the steam turbine installed in CTLL; as a result, the commissioning was declared for a lower capacity than that originally committed (165 MW instead of 178 MW). This vane wheel was replaced in October 2017, and after the commercial testing, on January 19, 2018 CAMMESA declared unit LDLATV01’s commercial commissioning for a 180 MW capacity, with a 15 MW increase, thus collecting the remuneration stipulated in the agreement entered into with CAMMESA pursuant to Res. No. 220/07. Thus, CTLL’s total capacity amounts to 765 MW. 16.1.3 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. 16.1.3.1 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 U$S 103 million. On August 31, 2017, CAMMESA granted the commercial commissioning of CT Pilar, which became operative as from that date. 16.1.3.2 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 U$S 90 million. On August 5, 2017, CAMMESA declared the commercial commissioning of the new gas turbine, which became operative as from such date. 16.1.3.3 Central Térmica Ingeniero White (“CT I. White”) The project consisted of the installation of a new power plant in I. White (Bahía Blanca, Province of Buenos Aires) with similar characteristics as that mentioned in Note 16.1.2.1. The total investment was approximately U$S 90 million. On December 21, 2017, CAMMESA declared the commercial commissioning of CT I. White, which became operative as from that date. 16.1.3 SEE Resolution No. 287/2017 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. 926/17, 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 U$S 350 million. Siemens and Techint will be in charge of the equipment supply, and the construction and commissioning of the project on a turnkey basis. Its commissioning at open cycle is expected for the second quarter of 2019, and as closed cycle for the second quarter of 2020. 16.1.4 RenovAr Program (Round 1) Under the call by the National Government to parties interested in developing projects for generation from renewable sources, on October 7, 2016 the MEyM, through Resolution No. 213/16, awarded the Corti wind farm project submitted by Greenwind. On January 23, 2017, the Company entered into a wholesale power purchase agreement with CAMMESA for a term of 20 years. On May 23, 2018, before the originally estimated execution period, Greenwind inaugurated its first Wind Farm, called Ingeniero Mario Cebreiro (“PEMC”), which is also the first project of this size and using this technology to reach such milestone under the Renovar 1 Open Call for Tenders. The PEMC project called for a total U$S139 million investment and consisted of the construction and installation of 29 Vestas wind turbines contributing 100 MW of renewable energy to the national system. On June 8, 2018, CAMMESA declared PEMC’s commercial commissioning. 16.1.5 Construction of New Wind Farms Pursuant to MEyM Resolution No. 281/2017 of the Renewable Energy Term Market (Mercado a Término de Energías Renovables, “MAT ER”), CAMMESA granted the Company and its subsidiaries PEA and PEFM the dispatch priority for three new projects in the Province of Buenos Aires, which production will be destined to meet the demand by large users through supply agreements between private parties. The projects, called Pampa Energía II Wind Farm (“PEPE II”) at the Company, Pampa Energía III Wind Farm (“PEPE III”) at PEFM and Pampa Energía IV Wind Farm (“PEPE IV”) at PEA, will call for a total investment of U$S 209 million and will produce 156 MW of renewable energy. The first two projects are already in the construction stage, and their commissioning is expected for the second quarter of 2019, the required investment amounting to approximately U$S 135 million. Even though the PEPE IV, with an estimated U$S 74 million investment, was announced on May 23, 2018, the volatility of the economy and changes in the applicable legislation adversely affected the project, and its feasibility is currently being assessed. As of the issuance of these financial statements, the Company estimates that the term for execution stipulated for the project is not likely to be met and, therefore, as of December 31, 2018, a provision for the enforcement of the associated guarantee has been set aside for a total amount of U$S12.5 million. However, the Company is currently negotiating the relocalization of the wind farm. 16.2 INVESTMENT COMMITMENT FOR THE EXPLORATION AND EXPLOITATION OF HYDROCARBONS As of the issuance of these financial statements, the Company has committed investments for an estimated total amount of U$S587 million, based on its participation, to be disbursed between 2019 and 2023, mainly regarding the Sierra Chata, Las Tacanas, El Mangrullo and Rincón del Mangrullo areas. |
17. RELATED PARTIES' TRANSACTIO
17. RELATED PARTIES' TRANSACTIONS | 12 Months Ended |
Dec. 31, 2018 | |
Related Parties Transactions | |
RELATED PARTIES' TRANSACTIONS | a) Sales of goods and services 12.31.2018 12.31.2017 12.31.2016 Joint ventures Transener (1) 20 48 32 TGS (2) 1,937 862 534 Greenwind (3) 12 - - Other related parties SACDE (3) 35 - - CYCSA - - 29 Refinor (4) 593 205 95 Oldelval (5) 6 6 2 2,603 1,121 692 (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 advisory services including organizational, commercial, administrative, financial and human resources management matters. (4) Corresponds to refined products sales. (5) Corresponds to oil sales. b) Purchases of goods and services 12.31.2018 12.31.2017 12.31.2016 Joint ventures Transener (3) (11) (21) TGS (1) (783) (319) (277) SACME (82) (77) (74) Other related parties SACDE (4) (69) - - Origenes Vida - (21) (13) Refinor (2) (1,275) (639) (246) Oldelval (3) (60) (120) (65) (2,272) (1,187) (696) (1) Corresponds to natural gas transportation services. (2) Corresponds to purchase of refined products. (3) Corresponds to oil transportation services. (4) Corresponds mainly to construction services including execution of work and storage of materials, capitalized in Property, plant and equipment. c) Fees for services 12.31.2018 12.31.2017 12.31.2016 Other related parties Salaverri, Dellatorre, Burgio & Wetzler (49) (27) (48) (49) (27) (48) Corresponds to fees for legal advice. d) Other operating expenses 12.31.2018 12.31.2017 12.31.2016 Other related parties OCP (1) (265) - - Foundation (2) (76) (55) (27) (341) (55) (27) (1) (2) e) Finance income 12.31.2018 12.31.2017 12.31.2016 Joint ventures TGS 122 106 50 122 106 50 Corresponds to finance leases. f) Finance expenses 12.31.2018 12.31.2017 12.31.2016 Other related parties Grupo EMES - - (876) Orígenes Retiro (17) (10) (15) (17) (10) (891) g) Corporate Bonds transactions Purchase of Corporate Bonds 12.31.2018 12.31.2017 12.31.2016 Other related parties Orígenes Retiro - (10) (1,399) - (10) (1,399) h) Dividends received 12.31.2018 12.31.2017 12.31.2016 Other related parties CIESA 657 - 8 Oldelval 50 12 - TJSM 13 13 6 TMB 15 15 6 735 40 20 i) Payment of dividends Other related parties 12.31.2018 12.31.2017 EMESA (82) (72) APCO Oil - (72) (82) (144) j) Key management personnel remuneration The total remuneration to executive directors accrued during the year ended December 31, 2018 and 2017 amounts to $ 363 million ($ 173 million in Directors' and Sindycs' fees and $ 190 million in the accrual of the Company-Value Compensation, EBDA Compensation and Stock-based Compensation Plans, of which $ 48 million correspond to shared based compensation of which $ 691 million correspond to shared based compensation k) Balances with related parties: As of December 31, 2018 Trade receivables Other receivables Current Non Current Current Joint ventures: TGS 288 1,436 158 Greenwind - 419 17 SACME - 5 - Associates and other related parties: Ultracore - - 20 Refinor 91 - - SACDE 5 - 5 Other - - 1 384 1,860 201 As of December 31, 2018 Trade payables Other payables Borrowings Current Current Current Joint ventures: Transener 4 - - TGS 105 - - SACME - 8 - Associates and other related parties: Orígenes Retiro - - 29 OCP - 3 - Refinor 136 - - 245 11 29 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, 2018, ANSES holds Edenor's Notes due 2022 amounting to $ 752 million (U$S 20 million of nominal value). As of December 31, 2017 Trade receivables Other receivables Current Non Current Current Joint ventures: Transener 7 - - TGS 191 1,165 110 Greenwind - - 188 SACME - 7 - Associates and other related parties: Ultracore - - 15 Refinor 15 - - SACDE 37 - 3 Other 1 - 1 251 1,172 317 As of December 31, 2017 Trade payables Other payables Borrowings Provisions Current Current Non Current Current Current Joint ventures: Transener 1 - - - - TGS 25 - - - - SACME - 7 - - - Associates and other related parties: Orígenes Seguro de vida - - - 3 - Orígenes Retiro - - 21 2 - OCP - - - - 576 Refinor 78 - - - - Oldelval 13 - - - - Other - 10 - - - 117 17 21 5 576 |
18. LEASES
18. LEASES | 12 Months Ended |
Dec. 31, 2018 | |
Leases | |
LEASES | 18.1 Operating a. As lesee The features that these leases 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 leasing 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 leasing 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, 2018 and 2017, future minimum payments with respect to operating leases of use are as follow: 12.31.2018 12.31.2017 2018 - 124 2019 155 125 2020 138 52 2021 103 5 Total future minimum lease payments 396 306 Total expenses for operating leases of use for the years ended December 31, 2018 and 2017 are $ 125 million and $ 126 million, respectively. a. As lessor Edenor has entered into operating leasing 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, 2018 and 2017, future minimum collections with respect to operating leasing are as follow: 12.31.2018 12.31.2017 2018 - 202 2019 174 194 Total future minimum lease collections 174 396 Total income from operating leasing for the years ended December 31, 2018 and 2017 is $ 190 million and $ 212 million, respectively. 18.2 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 U$S 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, 2018, this credit is included in other current and non-current receivables in an amount of $ 158 million and $ 1,436 million, respectively. |
19. COMPENSATION PLANS
19. COMPENSATION PLANS | 12 Months Ended |
Dec. 31, 2018 | |
Compensation Plans | |
COMPENSATION PLANS | 19.1 Company-Value Compensation (Pampa as successor company of PEPASA) On November 6, 2013, former PEPASA’s Extraordinary General Meeting of Shareholders resolved to approve a variable and contingent compensation to certain officers equivalent to 7% of the capital stock after the 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 U$S 0.1735 per share determined at the exact moment of the former PEPASA’s capital stock increase. On January 13, 2014, the former PEPASA’s capital stock increase was carried out and the rights granted to Officers to receive the Company-Value Compensation became effective. The fair value of the Option has been measured according to the Black-Scholes valuation model. The main variables considered in such model were the following: 1) 39.1% volatility based on the volatility of Pampa shares in the two listed markets; 2) Interest rate composed by 2,7% nominal 10-year risk-free interest rate plus an Argentine country risk premium of 7.3%, in both cases as of December 31, 2018. On January 18, 2017, PEPASA's executives requested the monetization of a significant part of the right due at that date, which was canceled by the Company on January 31, 2017. Within the framework of the corporate reorganization process described in Note 5.1.3.2, Pampa, as the absorbing company, is the universal successor of all the rights and obligations of the absorbed companies, including PEPASA. Therefore, as a consequence of the application of the exchange ratio of 2.2699 Pampa shares for each PEPASA share pursuant the merger, the executives who, by virtue of the agreement, had the option of monetizing their right over 2.985.000 PEPASA’ shares, has a post-merger option to monetize its right over a total of 6,775,652 Pampa’s shares at a U$S 0.0764 per share price, exercisable until November 25, 2020. 19.2 Stock-based Compensation Plan – Certain officers and other key staff (the “Compensation Plan”) On February 8, 2017, the Company’s Board of Directors approved the creation of a stock-based compensation plan and the first Specific Program, whereby certain officers and other key staff covered by each Specific Program will receive a certain number of company shares within the stipulated term aiming to encourage the alignment of the employees performance with the Company’s strategy and to generate a clear and direct link between the creation of value for shareholders and the employees’ compensation. Furthermore, the Company’s Board of Directors approved the acquisition of own shares in the market as a means of implementing the Plan (see Note 13.1.1). On April 7, 2017, the Company's Shareholders’ Meeting ratified the approval of the Compensation Plan by the Board of Directors, as well as its terms and conditions; and approved the cancellation of the preferential offer to shareholders in respect to the disposition of such shares as authorized by Section 67 of Capital Markets' Act No. 26,831 for the purposes of implementing such Plan. The number of shares is calculated based on a percentage over the total annual remuneration, plus the bonus assigned to each covered employee, divided by the weighted average price, in pesos, of the Company’s share and ADR for the same period; with one-third vesting each year, which will be awarded together with the payroll for April of the year following the vesting date, provided the employment relationship continues at least as at each vesting date. As of December 31, 2018, the Company has estimated a total quantity of 1,727,878 treasury shares to be delivered to employees pursuant to Compensation Plan. During 2018, the Company delivered 173,891 shares and estimates to deliver 345,329, 557,996, 437,996 and 212,666 shares during 2019, 2020, 2021 and 2022, respectively. As of the issuance of these Financial Statements, the Company has acquired 717,750 treasury shares and 191,290 treasury ADRs for an amount of $ 352 million, 173,891 of which were destined to officers compensation, remaining 543,859 treasury shares and 191,290 ADRs as of December 31, 2018. 19.3 Compensation agreements - Senior Management On June 2, 2017, the Board of Directors approved the execution and signing of compensation agreements with the Company’s main officers (the “Senior Management”), conditional upon their approval by the Annual Ordinary Meeting of Shareholders to be held each year. In accordance with international practices, the purpose of these agreements is to efficiently align the Senior Management’s interests with those of the Company and its shareholders, creating value for them only inasmuch as value is generated for shareholders, that is, if the Company’s market value increases. Under these agreements, the Senior Management will be entitled to a fixed compensation and an annual, variable and contingent long-term compensation related to the Company’s annual market value appreciation, with a cap on the Company’s operating income. With the purpose of avoiding duplication, any analogous compensation that the Senior Management had received from any of the Company’s subsidiaries, will be deducted from the compensation amount in proportion to the Company’s interests in such subsidiaries. 19.4 Share-based Compensation Plan - 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 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 2016 and 2017 fiscal years. |
20. CONTRACTUAL RESOLUTION OF R
20. CONTRACTUAL RESOLUTION OF REAL ESTATE ASSET | 12 Months Ended |
Dec. 31, 2018 | |
Contractual Resolution Of Real Estate Asset | |
CONTRACTUAL RESOLUTION OF REAL ESTATE ASSET | With the aim of concentrating in one single building Edenor’s centralized functions, and reducing rental costs and the risk of future increases, Edenor acquired from RDSA (the “seller”) a real estate asset to be constructed, for a total amount of USD 46 million -equivalent to $ 439 million at the exchange rate in effect at the time of entering into the purchase and sale agreement. To guarantee payment of liquidated damages in case of termination on account of the seller’s default, Edenor received a surety bond issued by Aseguradores de Cauciones S.A. Compañía de Seguros for up to the maximum amount of USD 46 million, plus the private banks’ Badlar rate in dollars plus 2%. The real property had to be delivered by the seller on June 1, 2018, milestone not met. Therefore, Edenor declared the seller in default, notifying the insurance company that issued the surety bond of such situation, and collected USD 502.8 thousand in fines accrued during the term of the purchase and sale agreement and duly deposited as bond by the seller for failing to meet the construction project milestones agreed upon in the agreement, amount which was recorded in the Other operating expense, net line item of the Statement of Comprehensive Income. On August 27, 2018, upon expiration of the legal time periods set forth in the agreement, Edenor notified RDSA of the termination of the agreement on account of its default, demanding payment of the liquidated damages: refunding of the purchase price, plus 15% interest in dollars from the purchase price payment date until the day of default, less the delay penalty amounts indicated in the preceding paragraph. Furthermore, on September 3, 2018, Edenor filed a claim against the bond with the insurance company, and subsequently provided the additional documentation and information that had been required. Due to RDSA’s failure to reimburse the purchase price plus interest, in November 2018, Edenor initiated an arbitration process against RDSA before the Arbitral Tribunal of the Buenos Aires Stock Exchange in order for RDSA to be ordered to pay the liquidated damages stipulated in the purchase and sale agreement, which, as of December 31, 2018 amounts to $ 3 billion. As of to date, said process is in process. Additionally, Edenor initiated the process aimed at collecting the surety bond that guaranteed RDSA’ obligation, which under the terms of the insurance policy results in a claim for USD 50.3 million, covering more than 60% of the amount claimed to RDSA. In the opinion of our legal advisors, Edenor’s right to collect the credit is based on extremely solid arguments; therefore, the award in the aforementioned arbitration process against RDSA as well as the outcome of the lawsuit that could eventually be filed against Aseguradora de Cauciones if it fails to comply with the payment of the above-mentioned surety bond, should be favorable to Edenor. However, taking into consideration that on February 1, 2019 RDSA filed a voluntary petition for reorganization proceedings, and that on February 28, 2019 the BO published Resolution No. 207/2019 of the National Insurance Superintendency forbidding Aseguradora de Cauciones from entering into new contracts and maintaining the prohibition to dispose of property until the latter’s deficitary situation is rectified, Edenor has recorded an allowance to partially cover the amount of the receivable, considering the possibility of its recovery, not because of the quality of its right, about which there is no doubt, but rather because of the financial position of its debtors, RDSA and Aseguradora de Cauciones. Accordingly, the balance of the recorded receivable as of December 31, 2018, net of allowance, amounts to $ 765.6 million (Note 12.2). |
21. DOCUMENTATION KEEPING
21. DOCUMENTATION KEEPING | 12 Months Ended |
Dec. 31, 2018 | |
Documentation Keeping | |
DOCUMENTATION KEEPING | On August 14, 2014, the National Securities Commission issued General Resolution No. 629, which introduced modifications to the provisions applicable to the keeping and conservation of corporate and accounting books and commercial documentation. To such effect, the Company and its subsidiary Edenor, have sent non-sensitive work papers and information corresponding to the periods not covered by the statute of limitations for their keeping in the Administración de Archivos S.A (AdeA)’s data warehouse located at Ruta 36, km 34.5, Florencio Varela, Provincia de Buenos Aires and in the Iron Mountain Argentina S.A.’s data warehouses located at the following addresses: - Azara 1245 –C.A.B.A. - Don Pedro de Mendoza 2163 –C.A.B.A. - Amancio Alcorta 2482 C.A.B.A. - San Miguel de Tucumán 601, Carlos Spegazzini, Municipality of Ezeiza, Province of Buenos Aires. A list of the documentation delivered for storage, as well as the documentation provided for in Article 5.a.3) Section I, Chapter V, Title II of the PROVISIONS (2013 regulatory provisions and amending rules), is available at the Company headquarters. |
22. OIL AND GAS RESERVES
22. OIL AND GAS RESERVES | 12 Months Ended |
Dec. 31, 2018 | |
Oil And Gas Reserves | |
OIL AND GAS RESERVES | 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, 2018. 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 9,179 11,604 5,818 7,990 14,997 19,594 Total at 12.31.2018 9,179 11,604 5,818 7,990 14,997 19,594 (1) (2) |
23. SUBSEQUENT EVENTS
23. SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events | |
SUBSEQUENT EVENTS | Sale of Dock Sud storage terminal On March 6, 2019, the Company entered into an agreement with Raízen Argentina, licensee of Shell brand, for the sale of the Dock Sud storage terminal, with a tank park totaling 228 thousand m3 of installed capacity. The sale price amounts to U$S 19.5 million plus U$S 1.4 million in products, subject to certain price adjustments and the closing is subject to the meeting of precedent conditions as usual for this type of transactions. New compensation scheme for generation segment On March 1, 2019, Res. SRRYME N° 1/19 was published in the BO, abrogating remuneration scheme under Res. SEE No. 19/17. The new remuneration regime is denominated in U$S and is applicable as from March 1, 2019. The following are the main changes: i. Thermal generators’ power remuneration that declare guaranteed availability of power offered (DIGO) is reduced to U$S 5,500 /MW-month for the periods between March to May (autumn) and September to November (spring); ii. A coefficient derived from the average utilization factor of the last twelve months of the unit is applied to thermal generator’s power remuneration: to receive 100% of the power payment, a minimum of 70% of the utilization power factor is required; between 30% and 70% of utilization, a percentage is received depending on it; and if the utilization factor is lower than 30%, the resulting coefficient is 0.70; and iii. Operation and maintenance remuneration is reduced to U$S 4 / MWh for energy generated with gas and U$S 7 / MWh for energy generated with fuel oil or gas oil, and energy operated remuneration is reduced to U$S 1.4 / MWh. New Company Share Repurchase Program (the “Program”) In view of the fact that the Company’s share price does not reflect either the value or the economic reality its assets currently or potentially have, this being detrimental to the interests of the Company’s shareholders, and taking into consideration the Company’s strong cash position and fund availability, on March 27, 2019, the Company’s Board of Directors approved the repurchase of portfolio shares for up to U$S 100 million for an initial term of 120 calendar days. Under the program, portfolio shares may not exceed, as a whole, the limit of 10% of the capital stock, and may be purchased for a maximum price of U$S 1.04 per common share and U$S 26 per ADR. Optional Tax revaluation adoption On March 27, 2019, Pampa and CPB, based on their assessment of the international context and the evolution of financial variables (including inflation rate), have decided to exercise the tax revaluation option. As a result, Pampa and CPB have to pay a principal amount of $ 1,495 million plus interest for an amount of $45 million in five monthly installments as special tax on the revaluation. The first installment of $ 299 million was paid on March 28, 2019. Furthermore, Pampa and CPB must withdraw any tax claim or petition related to the application of inflation adjustment in the income tax (see Note 11.6 and Note 15.7). Pampa and CPB are currently calculating the impact of the tax revaluation of assets in the deferred tax liabilities as well as the impact of the increased depreciations in the income tax. |
4. ACCOUNTING POLICIES (Policie
4. ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies Policies Abstract | |
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, 2018 - IFRS 15 "Revenue from contracts with customers" (issued in May 2014 and amended in September 2015) - IFRS 9 "Financial instruments" (amended in July 2014) - IFRS 2 "Share based payments" (amended June 2016) - IFRIC 22 "Foreign currency transactions and advance consideration" (issued in December 2016) - Annual improvements to IFRS Standards - Cycle 2014-2016 (issued in December 2016) The impact of the main issues related to the initial application of IFRS 9 and IFRS 15 is disclosed below, the application of the rest of the standards, amendments or interpretations did not have any impact on the results of the operations or the financial position of the Company, neither on the accounting policies applicable as from January 1, 2018. 4.1.1 Impacts of adoption 4.1.1.1 IFRS 15 The Company opted to apply IFRS 15 retrospectively as from of January 1, 2018, only in relation to contracts that were not completed at the date of initial application, recognizing, when applicable, the cumulative effect of the application as an adjustment to the opening balance of retained earnings. The management has assessed the effects of the application of IFRS 15, in relation to the contracts not completed as of January 1, 2018 and has not identified differences related to the identification of performance obligations, nor the methodology for allocating prices to those obligations, that could affect the amount or timing of revenue recognition and, as a consequence, the Company did not recognize any adjustment to the opening balance of retained earnings. Finally, no significant contract assets or contract liabilities to be separately presented in accordance with IFRS 15, have been identified. 4.1.1.2 IFRS 9 The Company applied IFRS 9 amended as from January 1, 2018, with the practical expedient permitted under the standard, without restating comparative periods. The Company has reviewed its financial assets measured and classified at fair value through profit and loss or at amortized cost and has concluded that satisfy conditions to maintain the classification. As a result, the initial adoption did not affect the classification and measurement of financial assets of the Company. On the other hand, regarding the new hedge accounting model, the Company has not opted for the designation of any hedge relationship at IFRS 9 amended initial adoption date and, consequently, the initial adoption did not have any impact on the results of operations or the financial position of the Company. Finally, in relation to the change in the impairment methodology for financial assets based on expected credit losses, the Company applied the simplified approach of IFRS 9 for trade receivables and for other receivables with similar risk characteristics. To measure the expected credit losses, rates are calculated for different ranges of days past due on receivables that are grouped by business segment, and based on shared credit risk characteristics. The expected credit loss as of January 1, 2018 was determined based on credit loss rates calculated for days past due detailed below: Rates Undue 30 days 60 days 90 days 120 days 150 days 180 days +180 days Distribution of energy 8% 8% 12% 19% 26% 59% 69% 69% Rest of business segments 0.32% 0.93% 8.11% 19.61% 35.69% 45.63% 59.00% 63.01% The loss allowance for trade receivables adjustment as of January 1, 2018 for the application of the expected credit losses methodology to the loss allowance as of December 31, 2017, stated in terms of the measuring unit current as of December 31, 2018, amounted to $ 153 million and is detailed as follows: Initial Adjustment Loss allowance for trade receivables calculated under IAS 39 as of 12/31/2017 822 Adjustment to the opening balance of retained earnings 153 Loss allowance for trade receivables calculated under IFRS 9 as of 01/01/2018 975 The loss allowance for other receivables adjustment as of January 1, 2018 for the application of the expected credit losses methodology to the loss allowance as of December 31, 2017, stated in terms of the measuring unit current as of December 31, 2018, amounted to a decrease of $ 39 million and is detailed as follows: Initial Adjustment Loss allowance for other receivables calculated under IAS 39 as of 12/31/2017 256 Adjustment to the opening balance of retained earnings (39) Loss allowance for other receivables calculated under IFRS 9 as of 01/01/2018 217 The detailed adjustments to the opening balance in equity as a result of the application of IFRS 9, stated in terms of the measuring unit current as of December 31, 2018, are disclosed net of tax effect for a total amount of $ 80 million, with counterpart in retained earnings of $ 55 million and in non-controlling interest of $ 25 million. In the prior year, the calculation of the loss allowance for trade receivables and other receivables was assessed based on the incurred loss model, and considered the existence of objective evidence of default for the recognition of losses in the statement of comprehensive income. Finally, although cash, cash equivalents and financial assets are also subject to the impairment requirements of IFRS 9, the identified impairment loss is immaterial. |
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 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 will apply the practical expedients permitted under IFRS 16, in relation to the lease contracts previously identified as such under IAS 17, retrospectively with the cumulative effect recognised as an adjustment to the opening balance of retained earnings as of January 1, 2019, without restating the comparative information. The company will recognise right-of-use assets for an amount equal to the lease liability at the adoption date (which is equivalent to the present value of the remaining lease payments), adjusted by the amount of any prepaid or accrued lease payments as of December 31, 2018. The Company is ending the analysis of its application and estimates that the initial application will not have a significant impact in retained earnings. The Company, will maintain the recorded book value for the right-of-use assets and lease liabilities previously classified as finance leases under IAS 17, at the adoption date. Finally, no transition adjustments will be made for leases in which Pampa is a lessor. - - - 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 estimates that its application 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 estimates that its application will not have 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 any impact on the Company’s operating results or financial position. - IAS 19 "Employee benefits": amended in February 2018, establishes changes for measurement of past services costs and net interest in case of post-employment defined benefit plans amendments, curtailments or settlements. It is applicable to plan amendments, curtailments or settlements occurring on or after 1 January 2019. - Conceptual Framework: the IASB issued a revised conceptual framework for financial reporting that will replace the current framework. However, the framework is not a standard, nor does it replace any existing standard. The set of concepts of the revised conceptual framework is effective immediately for the IASB and Interpretations Committee. It is effective for annual periods beginning on or after January 1, 2020 for companies with financial statements under IFRS that use the conceptual framework to develop accounting policies when no IFRS Standard applies to a particular transaction. - IFRS 3 "Business Combinations": amended in October 2018. Clarifies the business definition and establishes guidelines to determine whether a transaction should be accounted as a business combination or as an asset acquisition. It is applicable to acquisition transactions on or after January 1, 2020 and early adoption is permitted. - IAS 1 "Presentation of financial statements" and IAS 8 "Accounting policies, changes in accounting estimates and errors": amended in October 2018. Clarify the definition of material and incorporate the concept of "obscured information" when there is a similar effect to omitting or misstating that information. It is applicable prospectively to annual periods beginning on January 1, 2020 and early adoption is permitted. |
Effects of changes in inflation and foreign exchange rate | 4.3.1 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 determine whether an economy is categorized as a high inflation economy under IAS 29, the standard details several factors to be assessed, including the existence of a cumulative inflation rate over three years approaching, or exceeding, 100%. Cumulative inflation over the last three years exceeds 100%. Therefore, the Argentine economy should be considered a high inflation economy under IAS 29 as from July 1, 2018. The standard establishes that the adjustment methodology should be applied from its last application date, which was February 2003. In an inflationary period, an entity holding an excess of monetary assets over monetary liabilities loses purchasing power, and an entity with an excess of monetary liabilities over monetary assets gains purchasing power, provided such items are not subject to an adjustment mechanism. In turn, Law No. 27,468, published in the BO on December 4, 2018, amended Article 10 of Law No. 23,928 as amended, establishing that the repeal of all legal or regulatory standards that establish or authorize the indexation by prices, monetary update, variation of costs or any other form of repowering of debts, taxes, prices or rates of goods, works or services, does not include financial statements, for which the provisions of article 62 of Law No. 19,550 as amended will continue to be applicable. Additionally, the aforementioned law repealed of Decree No. 1,269 / 2002 dated on July 16, 2002 as amended and delegated to the PEN, through its controlling agencies, to establish the date from which the mentioned provisions will take effect in relation to the presentation of financial statements. Therefore, through General Resolution 777/2018, published in the BO on December 28, 2018, the CNV provided that entities subject to its control should apply the restatement method in a constant currency as established by IAS 29 for financial statements, interim financial statements and special purposes financial statements for periods ending as from December 31, 2018. The main procedures for adjusting for inflation are the following: - Monetary assets and liabilities are not restated since they are already stated in terms of the measuring unit current at the end of the reporting year. - Assets and liabilities subject to adjustments based on specific agreements are restated in accordance with such agreements. - Non-monetary assets and liabilities are restated by applying the variation of the general price index from the acquisition or revaluation to the end of the reporting year. - Equity components are restated by applying the variation of the general price index from the date of contribution, or from the moment they arose by any other means. - Non-monetary assets and liabilities measured at fair value are not restated since they are already stated in terms of the measuring unit current at the end of the reporting year. - Components of the statement of comprehensive income are restated by applying the variation of the general price index form the date on which the income and expenses were originally recognized. - The loss or gain derived from the net monetary position of the Company is included in the statement of comprehensive income, in “Financial results”, under the heading "Gain on monetary position". - All the comparative figures are restated by applying the variation of the general price index until the end of the current year. For initial application of the restatement method, equity accounts were restated as follows: - Share capital and treasury shares were restated from the date of subscription, repurchase or from last adjustment for inflation application date, whichever happened later. The resulting amount was included in "Adjustment of capital" and "Adjustment of own shares in portfolio" lines, respectively. - Share premiums were restated from the date of the respective merger. - Exchange differences on translation were stated in real terms. - Other comprehensive income or loss were restated from the date of each accounting registration. - Reserves were not restated in the initial application. The adjustment for inflation was calculated considering the price index established by the FACPCE based on the price index published by the INDEC. As of December 31, 2018, the price index amounted to 184,255, with an inflation rate of 47.6% and 148.0% for the periods of 12 and 36 months, ended on that date, respectively. 4.3.2 Transaction and balances in foreign currency Foreign currency transactions are translated into the functional and presentation currency using the exchange rates as of at the date of the transaction or measurement, if there are remeasured items. 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 statement of comprehensive income, net of inflation effect, 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. 4.3.3 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, stated in terms of the measuring unit current at the end of the reporting year. 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 translation process into the functional currency to presentation currency transactions are recognized in “Other Comprehensive Income”, net of inflation effect. 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. |
Principles of consolidation and equity accounting | 4.4.1 Subsidiaries Subsidiaries are all entities over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. 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 4.4.5 below). Intercompany transactions, balances and unrealized gains on transactions between Group companies are eliminated. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the transferred asset. Accounting policies of subsidiaries have been changed 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 under the heading Foreing Currency Exchage Difference, net. Non-controlling interests in the results and equity of subsidiaries are shown separately in the Consolidated Statement of Comprehensive Income, Consolidated Statement of Changes in Equity and Consolidated Statement of Financial Position respectively. 4.4.2 Associates Associates are all entities over which the group has significant influence but not control or joint control. This is generally the case where the Group holds between 20% and 50% of the voting rights. Investments in associates are accounted for using the equity method of accounting (see Note 4.4.4 below), after initially being recognized at cost. 4.4.3. Joint arrangements 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 4.4.4 below), after initially being recognized at cost. 4.4.4. Equity Method Under the equity method of accounting, the investments are initially recognized at cost and adjusted thereafter to recognize the Group’s share of the post-acquisition profits or losses of the investee in profit or loss, and the Group’s share of movements in other comprehensive income of the investee in other comprehensive income. Dividends received or receivable from associates and joint ventures are recognized as a reduction in the carrying amount of the investment. When the Group’s share of losses in an equity-accounted investment equals or exceeds its interest in the entity, together with any long-term interests that, in substance, form part of the net investment, the Group does not recognize further losses, unless it has incurred obligations or made payments on behalf of the other entity. Unrealized gains on transactions between the Group and its associates and joint ventures are eliminated to the extent of the group’s interest in these entities. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of equity accounted investees have been changed where necessary to ensure consistency with the policies adopted by the Group. The carrying amount of equity accounted investments is tested for impairment in accordance with the policy described below in Note 4.9. 4.4.5 Business combinations The acquisition method of accounting is used to account for all business combinations, regardless of whether equity instruments or other assets are acquired. The consideration transferred for the acquisitions comprises: i) the fair value of the transferred assets, ii) the liabilities incurred to the former owners of the acquired business, iii) the equity interests issued by the group, iv) the fair value of any asset or liability resulting from a contingent consideration arrangement, and v) the fair value of any pre-existing equity interest in the subsidiary. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. The group recognises any non-controlling interest in the acquired entity on an acquisition-by-acquisition basis 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. 4.4.6. Changes in ownership interests The group treats transactions with non-controlling interests that do not result in a loss of control as transactions with equity owners of the group. A change in ownership interest results in an adjustment between the carrying amounts of the controlling and non-controlling interests to reflect their relative interests in the subsidiary. Any difference between the amount of the adjustment to non-controlling interests and any consideration paid or received is recognized in “Other reserves” within equity attributable to owners of the Company. When the Group ceases to consolidate or equity account for an investment because of a loss of control, joint control or significant influence, any retained interest in the entity is remeasured to its fair value with the change in carrying amount recognized in profit or loss. This fair value becomes the initial carrying amount for the purposes of subsequently accounting for the retained interest as an associate, joint venture or financial asset. In addition, any amounts previously recognized in other comprehensive income in respect of that entity are accounted for as if the Group had directly disposed of the related assets or liabilities. This may mean that amounts previously recognised in other comprehensive income are reclassified to profit or loss. If the ownership interest in a joint venture or an associate is reduced but joint control or significant influence is retained, only a proportionate share of the amounts previously recognized in other comprehensive income are reclassified to profit or loss where appropriate. |
Segment reporting | Operating segments are reported in a manner consistent with the internal reporting provided to the Executive committee. The Executive committee, is the highest decision-making authority, is the person responsible for allocating resources and setting the performance of the entity’s operating segments, and has been identified as the person/ body executing the Company’s strategic decisions. In segmentation the Company considers transactions with third parties and intercompany operations, which are done on internal transfer pricing based on market prices for each product. |
Property, plant and equipment | Property, Plant and Equipment is measured following the cost model. It is recognized at acquisition cost stated in terms of the measuring unit current at the end of the reporting year, 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, net of the inflation effect, 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 stated in terms of the measuring unit current at the end of the reporting year, 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 sale price with the carrying amount, stated in terms of the measuring unit current at the disposal date. The resulting amount is subsequently stated in terms of the measuring unit current at the end of the reporting year. 4.6.1 Depreciation methods and usefull 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 | 4.7.1 Goodwill Goodwill is the result of the acquisition of subsidiaries. Goodwill represents the excess of the acquisition cost over the fair value of the equity interest in the acquired entity held by the company on the net identifiable assets acquired at the date of acquisition, stated in terms of the measuring unit current at the end of the reporting year. 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. 4.7.2 Concession arrangements Concession arrangements corresponding to Edenor and hydroelectric generation plants Diamanteand 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 stated in terms of the measuring unit current at the end of the reporting year less depreciation a less any accumulated impairment. They are amortized following the straight-line method based on each asset’s useful life, which corresponds to the life of each concession agreement. 4.7.3 Identified intangible assets in acquired investments Corresponds to intangible assets identified at the moment of the acquisition of companies. Identified assets meet the criteria established in IFRS for capitalization and are stated in terms of the measuring unit current at the end of the reporting year less depreciation a less any accumulated impairment. They are amortized by the straight-line method according to the useful life of each asset, considering the estimated way in which the benefits produced by the asset will be consumed. |
Assets for oil and gas exploration | The Company uses the successful efforts method of accounting for its oil and gas exploration and production activities. This method involves the capitalization of: (i) the cost of acquiring properties in oil and gas exploration and production areas; (ii) the cost of drilling and equipping exploratory wells that result in the discovery of commercially recoverable reserves; (iii) the cost of drilling and equipping development wells, and (iv) the estimated asset retirement obligations. According to the successful efforts method of accounting, exploration costs (including geological and geophysical costs), excluding exploratory well costs, are expensed during the period in which they are incurred. Drilling costs of exploratory wells are capitalized until it is determined that proved reserves exists and they justify the commercial development. If reserves are not found, such drilling costs are expensed. Occasionally, an exploratory well may determine the existence of oil and gas reserves but they cannot be classified as proved when drilling is complete. In those cases, such costs continue to be capitalized insofar as the well has allowed determining the existence of sufficient reserves to warrant its completion as a production well and the Company is making sufficient progress in evaluating the economic and operating feasibility of the project. 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. |
Financial assets | 4.10.1 Classification The Group classifies its financial assets in the following categories: i. those that are subsequently measured at fair value (either through other comprehensive income or through profit or loss), and ii. those that are subsequently measured at amortised cost. The classification depends on the entity´s business model for managing the financial assets and the contractual cash flow characteristics. Gains and losses from financial assets measured at fair value, will be recorded in the Statement of Comprehensive Income or in Statement of Other Comprehensive Income. Investments in equity instruments are measured at fair value. For those investments that are not held for trading, the Company may make an irrevocable election at initial recognition to present subsequent changes in other comprehensive income. The Company's election was to recognize changes in fair value through profit and loss. The company reclassifies financial assets when and only when it changes its business model for managing those financial assets. 4.10.2 Recognition and derecognition Regular way purchases and sales of financial assets are recognised and derecognised, as applicable, using trade date accounting or settlement date accounting on the date of contracting or settlement, that is, the date on which the Company commits itself to purchase or sell an asset. Financial assets are derecognized only when the contractual rights to receive the cash flows from the financial assets have expired or have been transferred and the Company has transferred substantially all the risks and rewards of ownership of the asset. 4.10.3 Measurement At initial recognition, the Group measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. A gain or loss on a debt investment that is subsequently measured at fair value and is not part of a hedging relationship is recognised in profit or loss and disclosed in “Changes in the fair value of financial instruments” within “Other financial Results. A gain or loss on a debt investment that is subsequently measured at amortised cost and is not part of a hedging relationship is recognized in profit or loss when the financial asset is derecognised or impaired and through the amortization process using the effective interest rate method. The Group subsequently measures equity investments at fair value. Dividends from such investments continue to be recognized in profit or loss as long as they represent a return on investment. 4.10.4 Impairment of financial assets As from January 1, 2018, the Company assesses the expected credit losses related to its financial instruments at amortized cost and financial instruments at fair value through other comprehensive income, if applicable. The Company applies the simplified approach allowed by IFRS 9 to measure expected credit losses for trade receivables and other receivables with similar risk characteristics. For this purpose, receivables are grouped by business segment and based on shared credit risk characteristics and expected credit losses are determined based on rates calculated for different ranges of default days from the due date. The expected loss rates are based on the sales collection profiles over a period of 24 months before the end of each year, considering historical credit losses experienced within this period that are adjusted, if applicable, to reflect forward-looking information that could affect the ability of customers to settle the receivables. Edenor’s allowance for impairment of receivables is assessed based on the delinquent balance, which comprises all such debt arising from the bills for electricity consumption of small-demand (T1), medium-demand (T2), and large-demand (T3) customers that remain unpaid 7 working days after their first due dates. The Company’s Management records an allowance applying to the delinquent balances of each customer category an uncollectibility rate that is determined according to each customer category based on the historical comparison of collections made. Additionally, and faced with temporary and/or exceptional situations, Edenor’s Management may redefine the amount of the allowance, specifying and supporting the criteria used in all the cases. 4.10.5 Offsetting of financial instruments Financial assets and liabilities are offset, and the net amount reported in the consolidated statements of financial position, when there is a legally enforceable right to offset the recognized amounts, and there is an intention to settle on a net basis, or realize the asset and settle the liability simultaneously. |
Trade and other receivables | Trade receivables and other receivables are recognized at fair value and subsequently measured at amortized cost, using the effective interest method, less provision for impairment, if applicable. The Company recongnises provisions for impairment on trade and other receivables based on expected credit loss model described in Note 4.10.4. Trade receivables are written off when there is no reasonable expectation of recovery. The Company considers the following default indicators: i) voluntary reorganization proceedings, bankruptcy or initiation of judicial demands; ii) insolvency implying a high impossibility of collection and iii) past due balances greater than 90 days. Receivables 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. 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. Subsequent accounting of changes in fair value depends on whether the derivative is designated as a hedging instrument and, if so, the nature of the item being hedged. The Company may designate derivative financial instruments in the following categories: i. fair value hedge of recognized assets or liabilities or over firm commitment (fair value hedge); ii. cash flow hedges of a particular risk associated with recognized assets and liabilities and highly probable future transactions (cash flow hedges), or iii. net investment hedge in foreign operation (net investment hedges). At the beginning of the hedge relationship, the Group documents the economic relationship between the hedging instruments and the hedged items, even if it is expected that changes in the cash flows of the hedging instruments offset changes in the cash flows of the hedged items. The Group documents its objective and risk management strategy to carry out its hedging operations. Changes in the measurement of derivative financial instruments designated as cash flow hedge, which have been determined as effective, are recognized in equity. The gain or loss related to the ineffective portion is recognized immediately in profit or loss. Changes in the measurement of derivative instruments that do not qualify for hedge accounting are recognized in profit or loss. Changes in the measurement of derivative financial instruments designated as effective cash flow hedges are recognized in other comprehensive income. The gain or loss related to the ineffective portion is recognized immediately in the statement of income. 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 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 stated in terms of the measuring unit current at the end of the reporting year 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 stated in terms of the measuring unit current at the end of the reporting year 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. All equity items are stated in terms of the measuring unit current at the end of the reporting year, except for “Share Capital” and “Treasury Shares”, which represent the subscribed and integrated capital in circulation and portfolio, respectively. Adjustments derived from restating those items into the measuring unit current at the end of the reporting year are disclosed in items “Share capital Adjustment” and “Treasury shares Adjustment”, respectively. 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. The restatement into the measuring unit current at the end of the reporting year has been applied from the date of subscription. The restatement of Treasury shares and Treasury shares cost have been applied from the date of each share repurchase transaction. 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. The restatement into the measuring unit current at the end of the reporting year has been applied from the date of subscription. (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. The restatement into the measuring unit current at the end of the reporting year has been applied from the date of each purchase transaction after restating the result into the measuring unit current at the date of each purchase. (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. The restatement into the measuring unit current at the end of the reporting year has been applied from the merger effective date as determined by the Merger Commitment. c. Legal reserve In accordance with the Argentine Commercial Companies Law No. 19,550, 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 share capital and the related adjustment of share capital. When for any reason, the amount of this reserve will be shorter, dividends may not be distributed, until such amount is reached. The amount is stated at book value at the beginning of the first period of application of IAS 29 and subsequently is stated in terms of the measuring unit current at the end of the reporting year. Any amounts of legal reserve appropriated after IAS 29 first application, is restated from the end of the prior year. 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. The amount is stated at book value at the beginning of the first period of application of IAS 29 and subsequently is stated in terms of the measuring unit current at the end of the reporting year. Any amounts of legal reserve appropriated after IAS 29 first application, is restated from the end of the prior year. 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. The amount is stated at book value at the beginning of the first period of application of IAS 29 and subsequently is stated in terms of the measuring unit current at the end of the reporting year. Any amounts of legal reserve appropriated after IAS 29 first application, is restated from the end of the prior year. f. Retained earnings (Acumulated 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. The restated amount is derived from the difference between the equity at the beginning of the first period of application of IAS 29 and the restatement of assets, liabilities and the rest of the equity items. Subsequently, the amounts are restated into the measuring unit current at the end of the reporting year. 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, net of the inflation 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. The restatement into the measuring unit current at the end of the reporting year has been applied from the date of the Shareholders' Meeting in which distsribution decision has been taken. |
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”) – Pampa (as PEPASA´s successor company): the Black-Scholes-Merton financial valuation model was used to make this estimate, taking into consideration the enforceability of the remuneration. The fair value of the amount payable for the compensation plan is accrued and acknowledged as an expense, with the recognition of an increase in liabilities. Liabilities are revalued on each balance sheet date and at their settlement date. Any change in the fair value of liabilities is disclosed under profit or loss. iii) Annual Variable Compensation granted to certain officers for the performance of technical and administrative duties amounting to 7% of the EBDA accrued (EBITDA less paid income tax, less total net financial costs, less interest on its own capital, considering an annual 10% dollar-denominated rate) of PEPASA´s continuing business in Pampa. The Company recognizes a provision (liability) and an expense for this EBDA Compensation based on the previously mentioned formula. - Compensations payable in shares i) Stock-based Compensation Plan – Officers and other key staff: the fair value of the received services is measured at the fair value of shares at the time of granting, and is disclosed during the vesting period, together with the corresponding increase in equity. ii) Stock-based Compensation Plan -Edenor: The fair value of the services received is disclosed as an expense and determined by reference to the fair value of the granted shares and charged to profit or loss in the vesting period, or immediately if vested at the grant date. |
Trade payables and other payables | Trade payables and other payables are recognized initially at fair value and subsequently measured at amortized cost using the effective interest method, except for particular matters described below. 4.18.1 Customer guarantees Customer guarantees are initially recognized at fair value and subsequently measured at amortized cost using the effective interest method. In accordance with the Concession Agreement, Edenor is allowed to receive customer guarantees in the following cases: i. When the power supply is requested and the user is unable to provide evidence of his legal ownership of the premises; ii. When service has been suspended more than once in one-year period; iii. When the power supply is reconnected and Edenor is able to verify the illegal use of the service (fraud). iv. When the customer is undergoing liquidated bankruptcy or reorganization proceedings. Edenor has decided not to request customer guarantees from residential tariff customers. Customer guarantees may be either paid in cash or through the customer’s bill and accrue monthly interest at a specific rate of 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. 4.18.2 Edenor’s customer refundable contributions Edenor receives assets or facilities (or the cash necessary to acquire or built them) from certain customers for services to be provided, based on individual agreements and the provisions of ENRE Resolution No. 215/12. These contributions are initially recognized as trade payables at fair value against Property, plant and equipment, and are subsequently measured at amortized cost using the effective interest rate method. 4.18.3 Edenor’s particular matters The recorded liabilities for 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, net of the inflation effect. 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. 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 | 4.21.1 Short-term obligations Liabilities for wages and salaries, including non-monetary benefits and accumulating sick leave that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service are recognised in respect of employees’ services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as current salaries and social security payable in the consolidated statement of financial position. 4.21.2 Defined benefit plans Labor costs liabilities are accrued in the periods in which the employees provide the services that trigger the consideration. 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, contingent liabilities and contingent assets | Provisions are recognized when the group has a present legal or constructive obligation as a result of a past event, it is probable that an outflow of resources will be required to settle that obligation, and the amount can be reliably estimated. Provisions are not recognised for future operating losses. Provisions are measured at the present value of the expenditures expected to be required to settle the present obligation, taking into account the best available information as of the date of the financial statements based on assumptions and methods considered appropriate and taking into account the opinion of each Company’s legal advisors. As additional information becomes available to the Company, estimates are revised and adjusted periodically. The discount rate used to determine the present value reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the passage of time is recognised as other financial results. Contingent liabilities are possible obligations that arise from past events and whose existence will be confirmed only by the occurrence or non-occurrence of uncertain future events not wholly within the control of the entity; or present obligations that arise from past events but it is not probable that an outflow of resources will be required to its settlement; or whose amount cannot be measured with sufficient reliability. Contingent liabilities are not recognised. The Company discloses in notes to the financial statements a brief description of the nature of material contingent liabilities. Contingent liabilities, whose possibility of any outflow in settlement is remote, are not disclosed unless they involve guarantees, in which case the nature of the guarantee is disclosed. Contingent assets are possible assets that arise from past events and whose existence will be confirmed only by the occurrence or non-occurrence of uncertain future events not wholly within the control of the entity. Contingent assets are no recognised. The Company discloses in notes to the financial statements a brief description of the nature of material contingent assets, where the related inflows of economic benefits are estimated to be probable. |
Revenue | 4.23.1 Generation segment (i) Revenues from SPOT market sales (SEE Resolution No. 19 /2017) The Company recognizes revenues from i) power availability on a monthly basis as the different power stations are available to generate and ii) energy generated when the delivery of energy is effective, based on the price specified in the applicable Resolution depending on the technology of each plant, including the additional remuneration, if applicable. Revenues are not adjusted for the effect of financing components as sales are made with an average credit term of 45 days. (ii) Revenues from contracts with CAMMESA (SE Resolution No. 220/07, SEE Resolution No. 21/16, SEE Resolution No. 287/17 and Renovar Programs) The Company recognizes revenues from supply contracts with CAMMESA for i) power availability, when applicable, on a monthly basis, as the different power plants are available to generate and ii) energy generated when the delivery of energy is effective, based on the price established in each contract. Revenues are not adjusted for the effect of financing components as sales are made with an average credit term of 45 days. (iii) Revenues from contracts within the MAT (energy plus Resolution SE No. 1,281/06 ) The Company recognizes revenues from energy plus sales and renewable energy when the delivery of energy is effective based on the price established in each contract. Revenues are not adjusted for the effect of financing components as sales are made with an average credit term of 30 days, which is consistent with market practice. 4.23.2 Distribution segment (i) Revenues from contracts with customers (ENRE Resolutions No. 63/17, 603/17, 33/18, 208/18 and SE Resolution No. 366/18) Edenor recognizes, on a monthly basis, revenues from electricity distribution and commercialization as energy is distributed to each client based on the applicable tariff and procedures established by the ENRE. Such revenue includes energy delivered, whether billed or unbilled, at the end of each period. Revenues are not adjusted for the effect of financing components as sales’ payments are not deferred over time, which is consistent with market practice. The current remuneration scheme establishes certain limits to the increase in the VAD resulting from the tariff structure review process, as well as a mechanism for monitoring the variation of CPD, which implies an increase in the compensation scheme for certain cases; the Company recognizes related revenues only to the extent that it is highly probable that a significant reversal will not occur and it is probable that the consideration will be collected regardless the period in which the energy is distributed. Edenor recognizes revenues related to energy supply to low-income areas and shantytowns, only to the extent that the Framework Agreement with Argentine Nation and Province of Buenos Aires has been renewed for the period in which the service was rendered. (ii) Edenor’s other revenues from contracts with customers Edenor recognizes other revenues from contracts with customers in relation to connection and reconnection services, rights of use on poles and transport of energy to other distribution companies on a monthly basis as services are rendered based on the price established in each contract. Revenues are not adjusted for the effect of financing components as sales’ payments are not deferred over time, which is consistent with market practice. 4.23.3 Oil and gas segment The Company recognizes revenues from the sale of gas when control of the product is transferred, that is, at the output of each area, when the gas is delivered to the carrier and to the extent there is no unfulfilled obligation that could affect the acceptance of the product by the client. In all cases the transport of the gas is in charge of the client. Revenues from these sales are recognized based on the price by product specified in each contract or agreement to the extent that it is highly probable that a significant reversal will not occur. Revenues are not adjusted for the effect of financing components as sales are made with a credit term not exceeding 45 days, which is consistent with market practice. 4.23.4 Petrochemical segment The Company recognizes revenues from the sale of petrochemical products, whether in local or foreign market, when the control of the product is transferred, that is, when the products are delivered to the client and there is no unfulfilled obligation that could affect the acceptance of the product by the client. The delivery, as established in each contract, is occurs: (a) when the products are dispatched and transported by and in charge of the client, or, (b) when the products have been dispatched by the Company to a specific location, the obsolescence risks and loss have been transferred to the client, and the client has accepted the products according to the sale contract, the acceptance provisions have expired, or when the Company has objective evidence that all acceptance criteria have been met. Revenues from these sales are recognized based on the price specified in each contract, to the extent that it is highly probable that a significant reversal will not occur. Revenues are not adjusted for the effect of financing components as sales are made with a credit term not exceeding 90 days, which is consistent with market practice. 4.23.5 Holding and others segment The Company recognizes revenues from contracts with customers in relation to advisory services to related companies as services are rendered based on the price established in each agreement. Revenues are not adjusted for the effect of financing components, as sales are made with a credit term of 30 days, which is consistent with market practice. |
Other Income | 4.24.1 Government grants Grants from the government are recognised at their fair value where there is a reasonable assurance that the grant will be received and the Group will comply with all attached conditions. There are no unfulfilled conditions or other contingencies attaching to the following grants. The group did not benefit directly from any other forms of government assistance. 4.24.1.1 Recognition of Compensation from Programs Encouraging an Increase in Domestic Natural Gas Production The Company recognizes revenues from Programs Encouraging an Increase in Domestic Natural Gas Production when the delivery of the gas is effective based on the price established in the applicable regulation, only to the extent that it is highly probable that a significant reversal will not occur and it is probable that the consideration will be collected, that is, as the procedure established by Government is formally complied with. Although, the consideration Programs´ collection depends on the Argentine Government’s payment capacity that has incurred in important delays in the cancellation of the credits in the past, revenues are not adjusted for the effect of financing components, which is consistent with market practice. The recognition of income from Programs Encouraging an Increase in Domestic Natural Gas Production is covered by IAS 20 since it involves a compensation as a result of the production increase committed. This item has been disclosed under Programs Encouraging an Increase in Domestic Natural Gas Production, under Other operating income, in the Consolidated Statement of Comprehensive Income. Furthermore, ítem Extroardinary Canon disclosed within Other operating expenses includes fiscal costs related to this Programs. 4.24.2 Interest income Interest income from financial assets at fair value through profit or loss is included into the result of changes in the fair value of those assets. Interest income from financial assets at amortized cost and financial assets at fair value through other comprehensive income are recognised in the statement of income. Interest income is calculated by using the effective interest rate to the gross carrying amount of a financial asset (without considering impairment provision), except for impaired financial assets, that is calculated by applying the effective interest rate to carrying amount net of impairment provision. 4.24.3 Dividends Dividends are received from financial assets measured at fair value through profit or loss or through other comprehensive income. Dividends are recognized as revenue when the right to receive payment has been established. This applies even if they are paid out of pre-acquisition profits. |
Income tax and minimum notional income tax | 4.25.1 Current and deferred income tax The tax expenses for the year include current and deferred tax. Tax is recognized in the income statement, except to the extent that it relates to items recognized in other comprehensive income or directly in equity. In 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 2.7), Venezuela, Ecuador, Bolivia, Spain and Uruguay are 30%, 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 18.2). 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 18.1). 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 18.1). The respective leased assets are included in the Consolidated Statement of Financial Position based on their nature. |
2. REGULATORY FRAMEWORK (Tables
2. REGULATORY FRAMEWORK (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Regulatory Framework Tables Abstract | |
Generating units in operation | In operation: Generator Generating unit Tecnology Power Applicable regime (2) CTG GUEMTG01 TG 101 MW Energy Plus Res. No. 1,281/06 (1) CTG GUEMTV11 TV ≤100 MW SE Resolutions No. 19/2017 CTG GUEMTV12 TV ≤100 MW SE Resolutions No. 19/2017 CTG GUEMTV13 TV >100 MW SE Resolutions No. 19/2017 Piquirenda PIQIDI 01-10 MG 30 MW SE Resolution No. 220/2007 (1) CPB BBLATV29 TV >100 MW SE Resolutions No. 19/2017 CPB BBLATV30 TV >100 MW SE Resolutions No. 19/2017 CT Ing. White BBLMD01-06 MG 100 MW SEE Resolution No. 21/2016 (1) CTLL LDLATG01 TG >50 MW SE Resolutions No. 19/2017 CTLL LDLATG02 TG >50 MW SE Resolutions No. 19/2017 CTLL LDLATG03 TG >50 MW SE Resolutions No. 19/2017 CTLL LDLATG04 TG 105 MW SEE Res. 220/2007 (75%), SEE Res. 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. 19/2017 CTGEBA GEBATG03 TG 164 MW Energy Plus Res. No. 1,281/06 HIDISA AGUA DEL TORO HI HI – Media 120<P≤300 SE Resolutions No. 19/2017 HIDISA EL TIGRE HI Renewable ≤ 50 SE Resolutions No. 19/2017 HIDISA LOS REYUNOS HI HI – Media 120<P≤300 SE Resolutions No. 19/2017 HINISA NIHUIL I HI HI – Small 50<P≤120 SE Resolutions No. 19/2017 HINISA NIHUIL II HI HI – Small 50<P≤120 SE Resolutions No. 19/2017 HINISA NIHUIL III HI HI – Small 50<P≤120 SE Resolutions No. 19/2017 HPPL PPL1HI HI HI – Media 120<P≤300 SE Resolutions No. 19/2017 HPPL PPL2HI HI HI – Media 120<P≤300 SE Resolutions No. 19/2017 HPPL PPL3HI HI HI – Media 120<P≤300 SE Resolutions No. 19/2017 Ecoenergía CERITV01 TV 15 MW Energy Plus Res. No. 1,281/06 (1) CT Parque Pilar PILBD01-06 MG 100 MW SEE Resolution No. 21/2016 (1) P.E. M. Cebreiro CORTEO01 Wind 100 MW Renovar (1) (1) (2) |
Generating units in construction | In construction: Generator Generating unit Tecnology Applicable regime CTLL MG 15 MW SE Resolutions No. 19/2017 CTGEBA CC 383 MW Resolución No. 287/2017 PEPE II Wind 53 MW MAT Renovable Res. 281/2017 PEPE III Wind 53 MW MAT Renovable Res. 281/2017 |
4. ACCOUNTING POLICIES (Tables)
4. ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies Tables Abstract | |
Expected credit loss rates | Rates Undue 30 days 60 days 90 days 120 days 150 days 180 days +180 days Distribution of energy 8% 8% 12% 19% 26% 59% 69% 69% Rest of business segments 0.32% 0.93% 8.11% 19.61% 35.69% 45.63% 59.00% 63.01% |
Allowance for loss on trade receivables | Initial Adjustment Loss allowance for trade receivables calculated under IAS 39 as of 12/31/2017 822 Adjustment to the opening balance of retained earnings 153 Loss allowance for trade receivables calculated under IFRS 9 as of 01/01/2018 975 |
Allowance for loss on other receivables | Initial Adjustment Loss allowance for other receivables calculated under IAS 39 as of 12/31/2017 256 Adjustment to the opening balance of retained earnings (39) Loss allowance for other receivables calculated under IFRS 9 as of 01/01/2018 217 |
Property, plant and equipment estimated useful lives | Buildings: 50 years Substations: 35 years High voltage lines: 40 - 45 years Medium voltage lines: 35 - 45 years Low voltage lines: 30 - 40 years Transformer centrals: 25 - 35 years Meters: 25 years Vehicles: 5 years Furniture, fittings and communication equipment: 5- 20 years Computer equipment and software: 3 years Tools: 10 years Gas Plant and Pipeline: 20 years |
5. GROUP STRUCTURE (Tables)
5. GROUP STRUCTURE (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Group Structure Tables Abstract | |
Sale of subsidiary and areas | 12.31.2018 Sale price 10,197 Book value of assets sold and costs associated with the transaction (8,553) Result for sale 1,644 Interests (1) 133 Income tax (818) Included in results 959 Other comprehensive income (loss) Reclasification from exchange differences on translation 223 Income tax (67) Included in Other comprehensive income 156 Total comprehensive income 1,115 12.31.2018 Sale price 1,044 Book value of assets sold and costs associated with the transaction (1,044) Result for sale - Income tax - Total result - |
Consolidated statement of comprehensive income related to discontinued operations | Oil and gas Refining y distribution Eliminations Total Revenue 2,481 15,900 (3,388) 14,993 Cost of sales (1,233) (13,606) 3,419 (11,420) Gross profit 1,248 2,294 31 3,573 Selling expenses (72) (1,243) - (1,315) Administrative expenses (46) (152) - (198) Exploration expenses (4) - - (4) Other operating income 54 211 - 265 Other operating expenses (231) (378) - (609) Result from the sale of shareholdings in companies and property, plant and equipment 1,644 - - 1,644 Operating income 2,593 732 31 3,356 Gain (Loss) on monetary position 255 80 (47) 288 Financial income 148 27 - 175 Financial expenses (20) (10) - (30) Other financial results (135) 824 - 689 Financial results, net 248 921 (47) 1,122 Income (loss) before income tax 2,841 1,653 (16) 4,478 - Income tax (973) (486) - (1,459) Profit (loss) of the year from discontinued operations 1,868 1,167 (16) 3,019 Other comprehensive income (loss) Income tax (67) - - (67) Reclasification from exchange differences on translation 223 223 Exchange differences on translation 156 - - 156 Other comprehensive income of the year from discontinued operations 312 - - 312 Total comprehensive income (loss) of the year from discontinued operations 2,180 1,167 (16) 3,331 Oil and gas Refining y distribution Eliminations Total Total income (loss) of the year from discontinued operations attributable to: Owners of the company 1,778 1,167 (16) 2,929 Non - controlling interest 90 - - 90 1,868 1,167 (16) 3,019 Total comprehensive income (loss) of the year from discontinued operations attributable to: Owners of the company 2,026 1,167 (16) 3,177 Non - controlling interest 154 - - 154 2,180 1,167 (16) 3,331 Oil and gas Refining y distribution Eliminations Total Revenue 9,755 27,439 (11,177) 26,017 Cost of sales (9,468) (23,313) 11,211 (21,570) Gross profit 287 4,126 34 4,447 Selling expenses (298) (3,192) - (3,490) Administrative expenses (208) (703) - (911) Exploration expenses (31) - - (31) Other operating income 604 365 - 969 Other operating expenses (294) (484) - (778) Impairment of property, plant and equipment - (1,040) - (1,040) Operating income (loss) 60 (928) 34 (834) Financial income 36 25 - 61 Financial expenses - (27) - (27) Other financial results (375) (20) - (395) Financial results, net (339) (22) - (361) Income before income tax (279) (950) 34 (1,195) Income tax (1,049) 351 - (698) Profit (Loss) of the year from discontinued operations (1,328) (599) 34 (1,893) Other comprehensive income Items that will not be reclassified to profit or loss Remeasurements related to defined benefit plans (11) 26 - 15 Income tax 67 (9) - 58 Items that may be reclassified to profit or loss Exchange differences on translation (606) - - (606) Other comprehensive (loss) income of the year from discontinued operations (550) 17 - (533) Total comprehensive (loss) income of the year from discontinued operations (1,878) (582) 34 (2,426) Oil and gas Refining y distribution Eliminations Total Total (loss) income of the year from discontinued operations attributable to: Owners of the company (1,503) (599) 34 (2,068) Non - controlling interest 175 - - 175 (1,328) (599) 34 (1,893) Total comprehensive (loss) income of the year from discontinued operations attributable to: Owners of the company (1,804) (582) 34 (2,352) Non - controlling interest (74) - - (74) (1,878) (582) 34 (2,426) Oil and gas Refining y distribution Eliminations Total Revenue 5,159 13,759 (5,926) 12,992 Cost of sales (4,077) (12,547) 6,157 (10,467) Gross profit 1,082 1,212 231 2,525 Selling expenses (132) (1,590) - (1,722) Administrative expenses (53) (48) - (101) Exploration expenses (86) - - (86) Other operating income 494 964 (792) 666 Other operating expenses (1,378) (206) 792 (792) Operating income (loss) (73) 332 231 490 Financial income 80 13 - 93 Financial expenses (21) (19) - (40) Other financial results (90) (84) - (174) Financial results, net (31) (90) - (121) (Loss) Income before income tax (104) 242 231 369 Income tax (50) (84) (83) (217) (Loss) Profit of the year from discontinued operations (154) 158 148 152 Other comprehensive income Items that will not be reclassified to profit or loss Remeasurements related to defined benefit plans (150) 29 - (121) Income tax 46 (11) - 35 Items that may be reclassified to profit or loss Exchange differences on translation 221 - - 221 Other comprehensive income of the year from discontinued operations 117 18 - 135 Total comprehensive (loss) income of the year from discontinued operations (37) 176 148 287 Oil and gas Refining y distribution Eliminations Total Total (loss) income of the year from discontinued operations attributable to: Owners of the company (133) 158 148 173 Non - controlling interest (21) - - (21) (154) 158 148 152 Total comprehensive (loss) income of the year from discontinued operations attributable to: Owners of the company (2) 176 148 322 Non - controlling interest (35) - - (35) (37) 176 148 287 |
Consolidated statement of cash flows related to discontinued operations | 12.31.2018 12.31.2017 12.31.2016 Net cash (used in) generated by operating activities (1,726) 3,291 2,902 Net cash used in investing activities - (1,897) (1,238) Net cash generated by (used in) financing activities 1,565 (1,168) (1,726) (Decrease) increase in cash and cash equivalents from discontinued operations (161) 226 (62) Cash and cash equivalents at the beginning of the year 238 142 275 Loss on net monetary position generated by cash and cash equivalents (77) (130) (60) (Decrease) increase in cash and cash equivalents (161) 226 (73) Cash and cash equivalents at the end of the year - 238 142 |
Assets and liabilities held for sale | As of December 31, 2017 Oil and gas Refining y distribution Total ASSETS NON-CURRENT ASSETS Property, plant and equipment 11,139 1,652 12,791 Intangible assets 459 154 613 Financial assets at amortized cost 52 - 52 Trade and other receivables 9 - 9 Total non-current assets 11,659 1,806 13,465 CURRENT ASSETS Inventories 226 2,894 3,120 Financial assets at fair value through profit and loss 1,005 - 1,005 Trade and other receivables 629 - 629 Cash and cash equivalents 238 - 238 Total current assets 2,098 2,894 4,992 Total assets classified as held for sale 13,757 4,700 18,457 LIABILITIES NON-CURRENT LIABILITIES Defined benefit plans 143 86 229 Deferred tax liabilities 837 - 837 Provisions 1,361 77 1,438 Total non-current liabilities 2,341 163 2,504 CURRENT LIABILITIES Trade and other payables 576 - 576 Salaries and social security payable 69 - 69 Defined benefit plans 3 9 12 Income tax and minimum notional income tax provision 38 - 38 Taxes payables 173 - 173 Provisions 75 52 127 Total current liabilities 934 61 995 Liabilities associated to assets classified 3,275 224 3,499 |
Subsidiaries information | 12.31.2018 12.31.2017 Company Country Main activity Direct and indirect participation % Direct and indirect participation % Corod Venezuela Oil 100.00% 100.00% CPB Argentina Generation 100.00% 100.00% CPB Energía S.A. Argentina Generation 100.00% 100.00% Ecuador TLC S.A. Ecuador Oil 100.00% 100.00% Edenor (2) Argentina Distribution of energy 52.18% 51.54% Enecor S.A. Argentina Transportation of electricity 69.99% 69.99% HIDISA Argentina Generation 61.00% 61.00% HINISA Argentina Generation 52.04% 52.04% PACOSA Argentina Distributor 100.00% 100.00% PBI Bolivia Investment 100.00% 100.00% PELSA (1) Argentina Oil - 58.88% Petrobras Energía Colombia Gran Cayman Colombia Oil 100.00% 100.00% Petrobras Energía Ecuador Gran Cayman Investment 100.00% 100.00% Petrobras Energía Operaciones Ecuador Ecuador Oil 100.00% 100.00% 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% PPSL Spain Investment 100.00% 100.00% TGU Uruguay Gas transportation 100.00% 100.00% Transelec Argentina Investment 100.00% 100.00% Trenerec Energía Bolivia Bolivia Investment 100.00% - Trenerec Ecuador Investment 100.00% - (1) (2) |
Summary statement of financial position for subsidiaries with significant non-controlling interest | 12.31.2018 12.31.2017 Non Current Total non current assets 63,284 57,134 Borrowings 7,192 6,189 Other non current liabilities 17,853 18,381 Total non current liabities 25,045 24,570 Current Cash and cash equivalents 28 122 Other current assets 13,680 13,626 Total current assets 13,708 13,748 Borrowings 1,077 105 Other current liabilities 19,901 18,413 Total current liabilities 20,978 18,518 Total equity 30,969 27,794 Non-controlling interest 14,938 13,470 |
Summary statement of comprehensive income (loss) for subsidiaries with significant non-controlling interest | 12.31.2018 12.31.2017 12.31.2016 Revenue 55,954 39,603 25,827 Depreciation (2,561) (2,148) (2,147) Interest income 672 454 385 Interest expense (4,968) (2,567) (2,589) Profit for the year before tax 6,175 5,591 388 Income tax (1,877) (510) (147) Profit for the year 4,298 5,081 241 Other comprehensive loss (47) (14) (7) Total comprehensive profit of the year 4,251 5,067 234 Income of the year attributable to non-controlling interest 2,073 2,462 117 Other comprehensive income of the year attributable to non-controlling interest (22) (7) (3) Comprehensive income of the year attributable to non-controlling interest 2,051 2,455 114 |
Summary statement of cash flow | 12.31.2018 12.31.2017 12.31.2016 Net cash generated by operating activities 9,621 7,361 4,975 Net cash used in investing activities (8,328) (8,509) (4,072) Net cash used in (geneted by) financing activities (2,097) 867 (947) Decrease in cash and cash equivalents (804) (281) (44) Cash and cash equivalents at the begining of the year 122 382 238 Exchange differences in cash and cash equivalents 156 - (9) Result from exposure to inlfation 554 21 292 Cash and cash equivalents at the end of the year 28 122 477 |
Investments in associates and joint ventures information | Information about the issuer Main activity Date Share capital Profit (loss) of the year/period Equity Direct and indirect participation % Associates Refinor Refinery 09.30.2018 92 (113) 968 28.50% Joint ventures CIESA (1) Investment 12.31.2018 639 5,871 16,748 50% Citelec (2) Investment 12.31.2018 556 1,531 7,481 50% Greenwind Generation 12.31.2018 5 (824) (408) 50% |
Interest in associates and joint ventures | 12.31.2018 12.31.2017 Disclosed in non-current assets Associates Refinor 960 1,094 Oldelval - 379 OCP 1,305 - Other 10 1 2,275 1,474 Joint ventures CIESA 9,755 7,606 Citelec 3,303 2,534 Greenwind - 261 13,058 10,401 15,333 11,875 Disclosed in non-current liabilities Greenwind (1) 153 - 153 - |
Result from interests in associates and joint ventures | 12.31.2018 12.31.2017 12.31.2016 Associates Oldelval 116 41 7 Refinor (138) (113) (4) OCP 1,305 - - Other 1 (3) - 1,284 (75) 3 Joint ventures CIESA 2,793 949 191 Citelec 801 1,012 92 Greenwind (414) (73) - 3,180 1,888 283 4,464 1,813 286 |
Evolution of interests in associates and joint ventures | Note 12.31.2018 12.31.2017 12.31.2016 At the beginning of the year 11,875 9,608 2,136 Reclassifications (1) - 457 - Increase for subsidiaries acquisition - - 7,254 Dividends 17 (706) - Other decreases 13.1 (434) (3) (68) Share of profit 4,464 1,813 286 Other comprehensive loss (19) - At the end of the year 15,180 11,875 9,608 |
Participation in exploration and production of oil and gas areas | Participation Duration Up To Name Note Location Direct Indirect Operator Argentine production Río Neuquén Río Negro and Neuquén 33.07% - YPF 2027/2051 Sierra Chata Neuquén 45.55% - PAMPA 2053 El Mangrullo Neuquén 100.00% - PAMPA 2053 La Tapera - Puesto Quiroga Chubut 35.67% - Tecpetrol 2027 El Tordillo Chubut 35.67% - Tecpetrol 2027 Aguaragüe Salta 15.00% - Tecpetrol 2023/2027 Gobernador Ayala Mendoza 22.51% - Pluspetrol 2,036 Anticlinal Neuquén 15.00% - YPF 2026 Estación Fernández Oro Río Negro 15.00% - YPF 2026 Rincón del Mangrullo Neuquén 50.00% - YPF 2052 Senillosa (a) Neuquén 85.00% - PAMPA 2040 Foreign Oritupano - Leona Venezuela - 22.00% PDVSA 2025 Acema Venezuela - 34.49% PDVSA 2025 La Concepción Venezuela - 36.00% PDVSA 2025 Mata Venezuela - 34.49% PDVSA 2025 Argentine exploration Parva Negra Este Neuquén 42.50% - PAMPA 2019 Enarsa 1 (E1) (b) Argentine Continental Shelf 25.00% - YPF - Enarsa 3 (E3) (b) Argentine Continental Shelf 35.00% - PAMPA - Chirete Salta 50.00% - High Luck Group Limited 2019 Río Atuel Mendoza 33.33% - Tecpetrol 2019 Borde del Limay (c) Neuquén 85.00% - PAMPA 2014 Los Vértices (c) Neuquén 85.00% - PAMPA 2014 Veta Escondida y Rincón de Aranda Neuquén 55.00% - PAMPA 2027 Las Tacanas Norte Neuquén 90.00% - PAMPA 2023 |
Exploratory well costs | 12.31.2018 12.31.2017 12.31.2016 At the beginning of the year 452 486 208 Increase for subsidiaries acquisition - - 425 Increases 309 226 188 Transferred to development (5) (216) (136) Loss of the year (28) (44) (199) At the end of the year 728 452 486 Number of wells at the end of the year 7 7 7 |
6. RISKS (Tables)
6. RISKS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Financial Risk Management Tables Abstract | |
Financial assets and liabilities in foreign currency | Type Amount of foreign currency Exchange rate (1) Total Total ASSETS NON CURRENT ASSETS Financial instruments Other receivables Related parties US$ 38.2 37.600 1,436 1,165 Third parties US$ 129.3 37.500 4,849 1,717 Financial assets at fair value through profit and loss Third parties US$ 3.6 37.500 135 - Total non current assets 6,420 2,882 CURRENT ASSETS Financial instruments Financial assets at fair value through profit and loss Third parties US$ 300.6 37.500 11,272 7,204 Derivative financial instruments Third parties US$ - - 6 Trade and other receivables Related parties US$ 9.9 37.600 372 279 Third parties US$ 180.8 37.500 6,780 8,600 U$ 4,050.9 1.157 4,688 - EUR 0.4 42.840 17 - Cash and cash equivalents US$ 163.6 37.500 6,135 596 EUR 17.3 42.840 741 10 Total current assets 30,005 16,695 Non current assets classified as held for sale US$ - 1,067 Total assets 36,425 20,644 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 37.700 251 185 Borrowings Related parties US$ - - 21 Third parties US$ 1,717.5 37.700 64,750 47,842 Non financial instruments Provisions Third parties US$ 104.8 37.700 3,951 4,317 Taxes payables Third parties US$ 7.7 37.700 290 - Total non current liabilities 69,242 52,365 CURRENT LIABILITIES Financial instruments Trade and other payables Related parties US$ 2.8 37.600 105 59 Third parties US$ 132.5 37.700 4,995 6,867 EUR 4.3 43.160 186 741 CHF - - - 18 SEK 1.0 4.200 4 71 Borrowings Third parties US$ 306.4 37.700 11,551 5,875 Derivative financial instruments Third parties US$ 1.3 37.700 49 - Non financial instruments Salaries and social security payable Third parties US$ 0.3 37.700 11 4 2 - Taxes payables Third parties US$ 5.9 37.700 222 28 Provisions Related parties US$ - 37.600 - 585 Third parties US$ 18.1 37.700 682 413 Total current liabilities 17,807 14,661 Liabilities associated to assets classified as held for sale US$ - - - 1,897 Total liabilities 87,049 68,923 Net Position Liability (50,624) (48,279) |
Exposure to the price risk | Increase (decrease) of the result for the year Financial assets 12.31.2018 12.31.2017 Shares 47 29 Government securities 1,123 741 Investment funds 400 1,416 Variation of the result of the year 1,570 2,186 |
Borrowings classified by interest rate | 12.31.2018 12.31.2017 Fixed interest rate: Argentinian pesos 550 3,352 U.S dollar 70,149 49,858 Subtotal loans granted at a fixed interest rate 70,699 53,210 Floating interest rates: Argentinian pesos 4,074 5,320 U.S dollar 4,950 3,112 Subtotal loans granted at a floating interest rate 9,024 8,432 Non interest accrued U.S dollar 1,165 1,029 Argentinian pesos 1,202 768 Subtotal no interest accrued 2,367 1,797 Total borrowings 82,090 63,439 |
Expected credit loss on trade receivables and financial assets rates | Undue 30 days 60 days 90 days 120 days 150 days 180 days + 180 days Generation 0.04% 0.09% 2.62% 3.39% 9.37% 13.56% 19.82% 28.88% Oil and Gas 2.20% 4.42% 11.11% 20.42% 42.85% 47.32% 49.20% 56.32% Distribution of energy 8% 8% 12% 19% 26% 59% 69% 69% Petrochemicals 0.03% 0.08% 1.41% 4.98% 11.52% 20.36% 24.91% 25.24% Holding 0.96% 1.25% 2.03% 2.85% 19.86% 26.41% 32.95% 32.97% |
Liquidity index | 12.31.2018 12.31.2017 Current assets 57,361 55,331 Current liabilities 44,606 44,236 Index 1.29 1.25 |
Financial liabilities contractual undiscounted cash flows maturity | As of December 31, 2018 Trade and other payables Borrowings Total Less than three months 12,412 4,217 16,629 Three months to one year 20,072 12,007 32,079 One to two years 334 9,130 9,464 Two to five years 100 33,634 33,734 More than five years - 36,844 36,844 Total 32,918 95,832 128,750 As of December 31, 2017 Trade and other payables Borrowings Total Less than three months 17,778 20,576 38,354 Three months to one year 8,865 19,102 27,967 One to two years 326 6,151 6,477 Two to five years 180 24,545 24,725 More than five years - 44,647 44,647 Without established term 8,963 8,964 17,927 Total 36,112 123,985 160,097 |
Financial leverage ratios | 12.31.2018 12.31.2017 Total borrowings 82,090 63,439 Less: cash and cash equivalents, and financial assets at fair value through profit and loss (24,370) (22,755) Net debt 57,720 40,684 Total capital attributable to owners 109,243 65,649 Leverage ratio 52.84% 61.97% |
7. SEGMENT INFORMATION (Tables)
7. SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Information Tables Abstract | |
Operating segments | Consolidated profit and loss information as of December 31, 2018 Generation Distribution of energy Oil and gas Refining & Distribution Petrochemicals Holding and others Eliminations Consolidated Revenue 22,763 55,954 17,261 - 12,748 1,354 - 110,080 Intersegment sales 62 - 2,377 - - - (2,439) - Cost of sales (10,274) (42,839) (10,822) - (12,602) (4) 2,380 (74,161) Gross profit (loss) 12,551 13,115 8,816 - 146 1,350 (59) 35,919 Selling expenses (54) (5,033) (721) (159) (484) (1) 1 (6,451) Administrative expenses (1,535) (2,872) (2,110) - (212) (1,022) - (7,751) Exploration expenses - - (45) - - - - (45) Other operating income 405 322 5,320 281 205 309 - 6,842 Other operating expenses (640) (1,648) (4,304) - (752) (210) 28 (7,526) Impairment of property, plant and equipment and intangible assets (7) - - - (1,188) - - (1,195) Share of profit (loss) from joint ventures and associates (414) 2 1,421 (138) - 3,593 - 4,464 Income from the sale of companies - - 1,052 - - - - 1,052 Operating profit (loss) 10,306 3,886 9,429 (16) (2,285) 4,019 (30) 25,309 Gain (Loss) on monetary position 8,789 8,504 4,037 (15) 1,850 464 67 23,696 Financial income 1,949 672 594 - 50 519 (33) 3,751 Financial expenses (3,218) (4,977) (2,978) - (566) (237) 32 (11,944) Other financial results (13,772) (1,879) (19,288) 32 (1,481) 4,023 - (32,365) Financial results, net (6,252) 2,320 (17,635) 17 - (147) 4,769 66 (16,862) Profit (loss) before income tax 4,054 6,206 (8,206) 1 (2,432) 8,788 36 8,447 Income tax (107) (1,865) 2,124 (32) 471 (1,249) - (658) Profit (loss) for the year from continuing operations 3,947 4,341 (6,082) (31) (1,961) 7,539 36 7,789 Profit (loss) for the year from discontinued operations - - 1,868 1,167 - - (16) 3,019 Profit (loss) for the year 3,947 4,341 (4,214) 1,136 (1,961) 7,539 20 10,808 Depreciation and amortization 2,488 2,611 3,472 20 222 3 - 8,816 Consolidated profit and loss information as of December 31, 2018 Generation Distribution of energy Oil and gas Refining & Distribution Petrochemicals Holding and others Eliminations Consolidated Total (loss) profit attributable to: Owners of the Company 3,734 2,273 (4,306) 1,136 (1,961) 7,539 20 8,435 Non - controlling interest 213 2,068 92 - - - - 2,373 Consolidated statement of financial position as of December 31, 2018 Assets 53,256 80,423 46,638 2,319 5,767 30,572 (5,140) 213,835 Liabilities 39,738 46,801 48,003 1,070 7,456 8,254 (5,170) 146,152 Additional consolidated information as of December 30, 2018 Increases in property, plant and equipment 8,911 8,550 7,221 50 140 199 - 25,071 Consolidated profit and loss information as of December 31, 2017 Generation Distribution of energy Oil and gas Refining & Distribution Petrochemicals Holding and others Eliminations Consolidated Revenue 13,250 39,603 16,695 - 11,825 635 - 82,008 Intersegment sales 61 - 707 - - - (768) - Cost of sales (7,335) (30,117) (11,695) - (10,915) (27) 750 (59,339) Gross profit (loss) 5,976 9,486 5,707 - 910 608 (18) 22,669 Selling expenses (161) (3,568) (600) - (471) - 24 (4,776) Administrative expenses (1,189) (2,505) (2,053) - (622) (1,118) 6 (7,481) Exploration expenses - - (71) - - - - (71) Other operating income 725 158 4,123 - 103 505 (6) 5,608 Other operating expenses (357) (1,261) (1,410) - (363) (501) - (3,892) Share of profit (loss) from joint ventures and associates (73) 10 41 (113) - 1,948 - 1,813 Operating profit (loss) 4,921 2,320 5,737 (113) (443) 1,442 6 13,870 Gain (Loss) on monetary position 654 5,457 (687) (276) 58 6,272 - 11,478 Financial income 1,453 441 209 - 16 286 (72) 2,333 Financial expenses (2,618) (2,607) (2,932) - (387) (278) 72 (8,750) Other financial results (1,265) 19 (3,493) - (241) 1,206 - (3,774) Financial results, net (1,776) 3,310 (6,903) (276) (554) 7,486 - 1,287 Profit (loss) before income tax 3,145 5,630 (1,166) (389) (997) 8,928 6 15,157 Income tax (137) (449) 893 - 728 (50) - 985 Profit (loss) for the year from continuing operations 3,008 5,181 (273) (389) (269) 8,878 6 16,142 Profit for the year from discontinued operations - - (1,328) (599) - - 34 (1,893) Profit (loss) for the year 3,008 5,181 (1,601) (988) (269) 8,878 40 14,249 Depreciation and amortization 2,029 2,198 3,273 - 152 87 - 7,739 Consolidated profit and loss information as of December 31, 2017 Generation Distribution of energy Oil and gas Refining & Distribution Petrochemicals Holding and others Eliminations Consolidated Total profit (loss) attributable to: Owners of the Company 2,841 2,719 (2,422) (988) (269) 8,878 40 10,799 Non - controlling interest 167 2,462 821 - - - - 3,450 Consolidated statement of financial position as of December 31,2017 Assets 42,018 74,362 43,510 8,847 5,328 46,761 (7,571) 213,255 Liabilities 12,556 43,958 16,748 5,314 3,552 64,445 (7,588) 138,985 Additional consolidated information as of December 31, 2017 Increases in property, plant and equipment 10,380 8,483 5,295 255 182 192 - 24,787 Consolidated profit and loss information as of December 31, 2016 Generation Distribution of energy Oil and gas Refining & Distribution Petrochemicals Holding and others Eliminations Consolidated Revenue 9,744 25,826 10,281 - 5,301 110 - 51,262 Intersegment sales 32 - 1,514 - - 59 (1,605) - Cost of sales (5,906) (25,253) (8,585) - (4,666) (6) 1,565 (42,851) Gross profit (loss) 3,870 573 3,210 - 635 163 (40) 8,411 Selling expenses (148) (3,379) (720) - (233) (11) - (4,491) Administrative expenses (840) (2,288) (1,352) - (33) (3,057) 59 (7,511) Exploration expenses - - (199) - - - - (199) Other operating income 116 3,218 4,001 - - 1,184 (129) 8,390 Other operating expenses (220) (913) (1,746) - (556) (596) 135 (3,896) Share of profit (loss) in joint ventures - - 7 (4) - 283 - 286 Income from the sale of subsidiaries and financial assets - - - - - 1,015 - 1,015 Operating profit (loss) 2,778 (2,789) 3,201 (4) (187) (1,019) 25 2,005 Gain (Loss) on monetary position 977 4,307 1,017 11 (51) (491) - 5,770 Financial income 1,269 385 218 - 4 222 (354) 1,744 Financial expenses (1,586) (2,589) (1,543) - - (2,791) 355 (8,154) Other financial results 481 (87) 47 - (6) 74 (4) 505 Financial results, net 1,141 2,016 (261) 11 (53) (2,986) (3) (135) Profit (loss) before income tax 3,919 (773) 2,940 7 (240) (4,005) 22 1,870 Income tax (736) 1,015 (672) - 65 1,931 - 1,603 Profit (loss) for the year from continuing operations 3,183 242 2,268 7 (175) (2,074) 22 3,473 Profit for the year from discontinued operations - - (156) 159 - - 149 152 Profit (loss) for the year 3,183 242 2,112 166 (175) (2,074) 171 3,625 Depreciation and amortization 1,407 2,147 3,419 - 74 55 - 7,102 Consolidated profit and loss information as of December 31, 2016 Generation Distribution of energy Oil and gas Refining & Distribution Petrochemicals Holding and others Eliminations Consolidated Total profit (loss) attributable to: Owners of the Company 3,204 125 1,458 166 (175) (2,074) 171 2,875 Non - controlling interest (21) 117 654 - - - - 750 |
8. REVENUE (Tables)
8. REVENUE (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue Tables Abstract | |
Revenue | 12.31.2018 12.31.2017 12.31.2016 Sales of energy to the Spot Market 12,229 8,869 5,097 Sales of energy by contract 10,483 4,304 4,623 Other sales 51 77 24 Generation subtotal 22,763 13,250 9,744 Energy sales 55,690 39,328 25,593 Right of use of poles 190 213 195 Connection and reconnection charges 74 62 38 Distribution subtotal 55,954 39,603 25,826 Oil, Gas and liquid sales 17,123 15,766 10,034 Other sales 138 929 247 Oil and gas subtotal 17,261 16,695 10,281 Administrative services sales 1,347 627 106 Other sales 7 8 4 Holding and others subtotal 1,354 635 110 Petrochemicals sales 12,748 11,825 5,301 Petrochemicals subtotal 12,748 11,825 5,301 Total revenue 110,080 82,008 51,262 Revenue is recognised: 1) At a point in time, that is the effective delivery of the energy, the product or the provision of connection or reconnection services for a total amount of $ 95,844 million, $ 74,492 million and $ 46,939 million as of December 31, 2018, 2017 and 2016, respectively; 2) Over time in case of power availability, technical assistance services and right to use poles for a total of $ 14,236 million, $ 7,516 million and $ 4,323 million as of December 31, 2018, 2017 and 2016, respectively. |
9. COST OF SALES (Tables)
9. COST OF SALES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Cost Of Sales Tables Abstract | |
Cost of sales | 12.31.2018 12.31.2017 12.31.2016 Inventories at the beginning of the year 4,266 6,191 558 Plus: Charges for the year Incorporation of inventories from acquisition of companies - - 5,850 Purchases of inventories, energy and gas 46,175 32,903 16,765 Salaries and social security charges 6,807 7,602 7,295 Benefits to personnel 218 267 162 Accrual of defined benefit plans 150 276 284 Works contracts, Fees and compensation for services 3,686 3,174 2,379 Property, plant and equipment depreciations 7,766 7,342 6,757 Intangible assets amortization 273 53 59 Transport of energy 155 128 24 Consumption of materials 2,406 1,091 825 Penalties (1) 2,093 425 5,025 Maintenance 908 688 774 Canons and Royalties 2,782 2,110 1,273 Environmental control 193 105 70 Rental and insurance 502 430 369 Surveillance and security 209 230 201 Taxes, rates and contributions 183 109 96 Other 558 486 276 Subtotal 75,064 57,419 48,484 Less: Inventories at the end of the year (5,169) (4,271) (6,191) Total cost of sales 74,161 59,339 42,851 |
10. OTHER ITEMS OF THE STATEM_2
10. OTHER ITEMS OF THE STATEMENT OF COMPREHENSIVE INCOME (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other Items Of Statement Of Comprehensive Income Tables Abstract | |
Selling expenses | 12.31.2018 12.31.2017 12.31.2016 Salaries and social security charges 972 1,007 1,019 Accrual of defined benefit plans 16 22 28 Fees and compensation for services 1,126 963 973 Compensation agreements 81 221 332 Property, plant and equipment depreciations 322 127 164 Taxes, rates and contributions 1,244 1,137 726 Communications 270 289 273 Penalties 1,052 434 385 Net impairment losses on financial assets (Note 4.1.1.2) 1,067 418 497 Transport 211 137 61 Other 90 21 33 Total selling expenses 6,451 4,776 4,491 |
Administrative expenses | 12.31.2018 12.31.2017 12.31.2016 Salaries and social security charges 3,044 2,898 2,984 Benefits to the personnel 206 205 112 Accrual of defined benefit plans 30 220 181 Fees and compensation for services 2,548 2,032 2,583 Compensation agreements 115 754 499 Directors' and Syndicates' fees 173 155 138 Property, plant and equipment depreciations 455 217 181 Consumption of materials 149 99 81 Maintenance 88 77 70 Transport and per diem 82 63 53 Rental and insurance 212 220 243 Surveillance and security 171 151 109 Taxes, rates and contributions 317 145 77 Communications 74 74 63 Institutional advertising and promotion 49 89 61 Other 38 82 76 Total administrative expenses 7,751 7,481 7,511 |
Exploration expenses | 12.31.2018 12.31.2017 12.31.2016 Geological and geophysical expenses 17 27 39 Decrease in unproductive wells 28 44 160 Total exploration expenses 45 71 199 |
Other operating income and expenses | Other operating income Note 12.31.2018 12.31.2017 12.31.2016 Compensation for transaction agreemnet in Ecuador 5.6 3,721 - - Recovery of doubtful accounts 7 154 162 Surplus Gas Injection Compensation 866 3,820 4,117 Commissions on municipal tax collections 77 52 44 Services to third parties 503 313 230 Profit for property, plant and equipment sale 118 7 192 Dividends received 29 56 13 Recognition of income - provisional remedies Note MEyM No 2016-04484723 - - 2,074 Income recognition on account of the RTI - SE Res. No. 32/15 - - 958 Higher costs recognition - SE Res. No. 250/13 and subsequent Notes - - 185 Onerous contract (Ship or pay) - - 317 Reversal of contingencies provision 140 915 11 Other 1,381 291 87 Total other operating income 6,842 5,608 8,390 Other operating expenses Provision for contingencies (1,320) (765) (962) Decrease in property, plant and equipment (217) (38) (109) Allowance for uncollectible tax credits (1) (27) (61) Tax on bank transactions (1,136) (1,035) (929) Other expenses FOCEDE - - (31) Cost for services provided to third parties (57) (62) (68) Compensation agreements - (80) (230) Donations and contributions (82) (62) (37) Institutional relationships (114) (105) (92) Extraordinary Canon (117) (511) (774) Contingent consideration - (304) - Onerous contract (Ship or Pay) (265) (142) - Tax contingencies in Ecuador 5.6 (2,605) - - Other (1,612) (761) (603) Total other operating expenses (7,526) (3,892) (3,896) |
Financial results | Finance income Note 12.31.2018 12.31.2017 12.31.2016 Commercial interest 2,230 1,605 1,381 Financial interest 1,270 540 142 Other interest 251 188 221 Total finance income 3,751 2,333 1,744 Finance expenses Commercial interest (2,957) (1,679) (2,159) Fiscal interest (318) (415) (160) Financial interest (1) (7,922) (6,107) (5,630) Other interest (549) (387) (6) Taxes and bank commissions - - (76) Other financial expenses (198) (162) (123) Total financial expenses (11,944) (8,750) (8,154) Gain on net monetary position 23,696 11,478 5,770 Other financial results Foreign currency exchange difference, net (32,048) (5,819) (1,649) Changes in the fair value of financial instruments 2,415 2,324 2,368 Discounted value measurement (2,713) (213) (138) Discounted value measurement - asset retirement obligation accretion (79) (69) (68) Results for the repurchase of corporate bonds 59 - - Other financial results 1 3 (8) Total other financial results (32,365) (3,774) 505 Total financial results, net (16,862) 1,287 (135) |
Income tax benefit expense | The breakdown of income tax charge is: 12.31.2018 12.31.2017 12.31.2016 Current tax 1,465 2,061 2,159 Deferred tax (713) (2,708) (3,412) Other comprehensive income 19 - (32) Difference in the estimate of previous fiscal year income tax and the income return (113) (456) (11) Mininum notional income tax - - (307) Direct charges for income tax - 118 - Income tax expense (benefit) 658 (985) (1,603) 12.31.2018 12.31.2017 12.31.2016 Profit before tax 8,447 15,157 1,870 Current tax rate 30% 35% 35% Result at the tax rate 2,534 5,305 655 Share of profit of joint ventures and associates (125) (4,403) (99) Non-taxable results (740) (2,235) (1,545) Non-deductible cost 18 322 Non-deductible provisions - 201 260 Other 80 19 309 Gain (Loss) on monetary position (434) 2,476 (863) Effect of tax rate change in deferred tax (983) (746) - Mininum notional income tax - - (307) Difference in the estimate of previous fiscal year income tax and the income tax statement 165 (741) 27 Deferred tax not previously recognized - (1,183) (40) Deferred tax assets not recognized 143 - - Income tax expense (benefit) 658 (985) (1,603) |
Consolidated accumulated tax losses | Fiscal year generation Fiscal year prescription 12.31.2018 12.31.2017 2013 2018 - 1 2014 2019 - 1 2015 2020 98 15 2016 2021 667 1,010 2017 2022 161 1,389 2018 2023 1,050 - 1,976 2,416 Unrecognized deferred assets (1) - Recognized Tax loss-carryforwards 1,975 2,416 |
11. NON-FINANCIAL ASSETS AND _2
11. NON-FINANCIAL ASSETS AND LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Nonfinancial Assets And Liabilities Tables Abstract | |
Changes in property plant and equipment | Original values Type of good At the beginning Translation effect Impairment Increases Transfers Decreases At the end Land 818 - - 2 - - 820 Buildings 7,497 - - 20 332 (35) 7,814 Equipment and machinery 36,569 5 (244) 32 3,244 - 39,606 High, medium and low voltage lines 36,429 - - 381 1,595 (344) 38,061 Substations 13,471 - - 113 188 (3) 13,769 Transforming chamber and platforms 7,532 - - 32 354 (59) 7,859 Meters 7,516 - - 18 356 - 7,890 Wells 18,580 - - 26 3,892 (1,324) 21,174 Mining property 8,910 - - 995 164 - 10,069 Vehicles 641 - - 192 (4) (16) 813 Furniture and fixtures and software equipment 2,169 - - 268 98 (3) 2,532 Communication equipments 535 - - 3 16 - 554 Materials and spare parts 1,068 - - 216 (49) (13) 1,222 Distribution storage center 332 - - - 31 - 363 Petrochemical industrial complex 2,287 - (1,837) - 108 - 558 Work in progress 17,155 - - 22,623 (10,255) - 29,523 Advances to suppliers 1,081 - - 150 (70) (439) 722 Other goods 168 - - - - - 168 Total at 12.31.2018 162,758 5 (2,081) 25,071 - (2,236) 183,517 Total at 12.31.2017 164,176 (430) - 24,787 (139) (25,636) 162,758 (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 Impairment For the year At the end At the end At 12.31.2017 Land - - - - - 820 818 Buildings (2,544) 35 - (294) (2,803) 5,011 4,953 Equipment and machinery (12,126) - 120 (2,454) (14,460) 25,146 24,443 High, medium and low voltage lines (11,250) 247 - (1,169) (12,172) 25,889 25,179 Substations (3,571) 1 - (404) (3,974) 9,795 9,900 Transforming chamber and platforms (1,940) 23 - (243) (2,160) 5,699 5,592 Meters (2,698) 1 - (304) (3,001) 4,889 4,818 Wells (10,165) - - (1,922) (12,087) 9,087 8,415 Mining property (3,512) - - (993) (4,505) 5,564 5,398 Vehicles (441) 16 - (167) (592) 221 200 Furniture and fixtures and software equipment (1,489) 2 - (341) (1,828) 704 680 Communication equipments (357) - - (21) (378) 176 178 Materials and spare parts (57) - - (11) (68) 1,154 1,011 Distribution storage center (74) - - (19) (93) 270 258 Petrochemical industrial complex (834) - 773 (195) (256) 302 1,453 Work in progress - - - - - 29,523 17,155 Advances to suppliers - - - - - 722 1,081 Other goods (129) - - (6) (135) 33 39 Total at 12.31.2018 (51,187) 325 893 (8,543) (58,512) 125,005 Total at 12.31.2017 (46,227) 5,349 - (10,309) (51,187) 111,571 (1) Includes $ 2,623 million corresponding to discontinued operations for 2017. |
Intangible assets original values | Original values Type of good At the beginning Increase Impairment Decrease At the end Concession agreements 10,267 - - - 10,267 Goodwill 1,309 - - - 1,309 Intangibles identified in acquisitions of companies 264 6 (7) - 263 Total at 12.31.2018 11,840 6 (7) - 11,839 Total at 12.31.2017 11,937 - - (97) 11,840 |
Intangible assets amortization | Depreciation Type of good At the beginning For the year (1) At the end Concession agreements (5,416) (259) (5,675) Goodwill - - - Intangibles identified in acquisitions of companies (70) (14) (84) Total at 12.31.2018 (5,486) (273) (5,759) Total at 12.31.2017 (5,372) (114) (5,486) |
Intangible assets net book values | Net book values Type of good At the end At 12.31.2018 Concession agreements 4,592 4,851 Goodwill 1,309 1,309 Intangibles identified in acquisitions of companies 179 194 Total at 12.31.2018 6,080 Total at 12.31.2017 6,354 |
Deferred tax assets and liabilities | 12.31.2017 Profit (loss) (1) Other comprehensive income (loss) 12.31.2018 Tax loss-carryforwards 2,416 (441) - 1,975 Trade and other receivables 175 289 - 464 Derivative financial instruments - - - - Financial assets at fair value through profit and loss 18 (16) - 2 Trade and other payables 1,745 210 - 1,955 Salaries and social security payable - 56 - 56 Defined benefit plans 384 (98) 41 327 Provisions 1,096 105 - 1,201 Taxes payable 249 (36) - 213 Liabilities associated to assets classified as held for sale 542 (542) - - Other 67 8 - 75 Deferred tax asset 6,692 (465) 41 6,268 Property, plant and equipment (16,687) 4,089 - (12,598) Investments in companies (1,962) 1,328 (67) (701) Intangible assets (108) (7,178) - (7,286) Trade and other receivables (997) 723 - (274) Financial assets at fair value through profit and loss (89) (233) - (322) Borrowings (201) 79 - (122) Assets classified as held for sale (1,241) 1,241 - - Other (165) (74) - (239) Deferred tax liabilities (21,450) (25) (67) (21,542) 12.31.2016 Reclasification to held for sale Profit (loss) Other comprehensive income (loss) 12.31.2017 Tax loss-carryforwards 1,736 - 680 - 2,416 Trade and other receivables 357 (9) (173) - 175 Derivative financial instruments - - - - - Financial assets at fair value through profit and loss - - 18 - 18 Trade and other payables 2,071 - (326) - 1,745 Salaries and social security payable - - - - - Defined benefit plans 666 (93) (184) (5) 384 Provisions 3,173 (508) (1,569) - 1,096 Taxes payable 413 - (164) - 249 Liabilities associated to assets classified as held for sale - 610 (68) - 542 Other 232 - (165) - 67 Deferred tax asset 8,648 - (1,951) (5) 6,692 Property, plant and equipment (23,565) 1,395 5,483 - (16,687) Investments in companies (2,449) - 554 (67) (1,962) Intangible assets (542) - 434 - (108) Trade and other receivables (1,568) - 571 - (997) Financial assets at fair value through profit and loss (176) - 87 - (89) Borrowings (112) - (89) - (201) Assets classified as held for sale - (1,395) 154 - (1,241) Other (6) - (159) - (165) Deferred tax liabilities (28,418) - 7,035 (67) (21,450) 12.31.2015 Increase for subsidiaries acquisition Profit (loss) Other comprehensive income (loss) 12.31.2016 Tax loss-carryforwards 79 - 1,657 - 1,736 Trade and other receivables 131 169 57 - 357 Derivative financial instruments - - - Financial assets at fair value through profit and loss 20 - (20) - - Trade and other payables 826 - 1,245 - 2,071 Salaries and social security payable - - - Defined benefit plans 270 324 25 47 666 Provisions 332 2,612 229 - 3,173 Taxes payable 122 722 (431) - 413 Liabilities associated to assets classified as held for sale - - - Other 57 213 (38) - 232 Deferred tax asset 1,837 4,040 2,724 47 8,648 Property, plant and equipment (13,823) (8,525) (1,217) - (23,565) Inventories - - - Investments in companies (2,439) (10) (2,449) Intangible assets (568) (141) 167 - (542) Trade and other receivables (660) (512) (396) - (1,568) Financial assets at fair value through profit and loss (122) (101) 47 - (176) Borrowings (62) (82) 32 - (112) Assets classified as held for sale - - - Other (5) (40) 39 - (6) Deferred tax liabilities (15,240) (11,840) (1,338) - (28,418) |
Net deferred tax assets and liabilities | 12.31.2018 12.31.2017 Deferred tax asset 80 6,692 Deferred tax liabilities (15,354) (21,450) Deferred tax liabilities, net (15,274) (14,758) |
Inventories | 12.31.2018 12.31.2017 Materials and spare parts 3,536 3,067 Advances to suppliers 71 211 In process and finished products 1,516 945 Stock crude oil 46 43 Total 5,169 4,266 |
Provisions | Note 12.31.2018 12.31.2017 Non Current Provisions for contingencies 4,674 5,121 Asset retirement obligation 770 1,355 Environmental remediation 13 22 Other provisions 42 51 5,499 6,549 Current Provisions for contingencies 658 190 Asset retirement obligation 65 224 Environmental remediation 147 188 Onerous contract (Ship or pay) 5.6 - 576 Other provisions 1 1 871 1,179 |
Changes in provisions | 12.31.2018 For contingencies Asset retirement obligation For environmental remediation At the beginning of the year 5,311 1,579 210 Increases 4,013 1,391 208 Reclasifications - (677) - Decreases (904) (190) (184) Gain on net monetary position (1,965) (677) (74) Reversal of unused amounts (1,123) (591) - At the end of the year 5,332 835 160 12.31.2017 For contingencies Asset retirement obligation For environmental remediation At the beginning of the year 7,500 3,430 642 Increases 1,627 1,053 162 Reclasifications (347) (27) 27 Reclasification to liabilities associated to assets classified as held for sale - (1,292) (272) Gain on net monetary position (1,404) (695) (123) Decreases (1,461) (276) (223) Reversal of unused amounts (604) (614) (3) At the end of the year 5,311 1,579 210 12.31.2016 For contingencies Asset retirement obligation For environmental remediation At the beginning of the year 831 122 - Increases 998 1,330 444 Increase for subsidiaries acquisition 7,047 2,558 497 Gain on net monetary position (1,230) (525) (96) Decreases (146) (55) (203) At the end of the year 7,500 3,430 642 |
Income tax and minimum notional income tax liability | 12.31.2018 12.31.2017 Non current Income tax, net of witholdings and advances 1,034 1,252 Minimum notional income tax, net of witholdings and advances - 22 Total non current 1,034 1,274 Current Income tax, net of witholdings and advances 930 1,299 Minimum notional income tax, net of witholdings and advances 154 93 Total current 1,084 1,392 |
Tax liabilities | 12.31.2018 12.31.2017 Non current Value added tax 160 323 Sales tax 33 25 Payment plans 60 192 Extraordinary Canon 289 - Total non current 542 540 Current Value added tax 786 777 Municipal, provincial and national contributions 130 588 Payment plans 53 90 Municipal taxes 108 102 Tax withholdings to be deposited 337 288 Stamp tax payable 10 15 Royalties 202 204 Extraordinary Canon 374 816 Other 52 21 Total current 2,052 2,901 |
Defined benefit plan information | 12.31.2018 Present value of the obligation Fair value of plan assets Net liability at the end of the year Liabilities at the beginning 1,760 (117) 1,643 Items classified in profit or loss Current services cost 75 - 75 Cost for interest 339 (31) 308 Contributions paid (187) - (187) Items classified in other comprehensive income Actuarial losses (gains) 225 (65) 160 Exchange differences on translation 4 - 4 Benefit payments (130) - (130) (Gain) loss on net monetary position (586) 50 (536) At the end 1,500 (163) 1,337 12.31.2017 Present value of the obligation Present value of assets Net liability at the end of the year Liabilities at the beginning 2,189 (286) 1,903 Items classified in profit or loss Current services cost 95 - 95 Cost for interest 457 (38) 419 Past services cost 46 - 46 Items classified in other comprehensive income Actuarial losses (gains) (32) 16 (16) Exchange differences on translation 52 (26) 26 Benefit payments (87) 11 (76) Contributions paid - (11) (11) Reclasification to liabilities associated to assets classified as held for sale (420) 165 (255) (Gain) loss on net monetary position (540) 52 (488) At the end 1,760 (117) 1,643 12.31.2016 Present value of the obligation Present value of assets Net liability at the end of the year Liabilities at the beginning 769 - 769 Items classified in profit or loss Current services cost 83 - 83 Cost for interest 412 (26) 386 Items classified in other comprehensive income Actuarial losses (gains) 145 10 155 Benefit payments (151) 4 (147) Contributions paid - (4) (4) (Gain) loss on net monetary position (271) 10 (261) Increase for subsidiries acquisition 1,202 (280) 922 At the end 2,189 (286) 1,903 |
Estimated expected benefits payments | 12.31.2018 Less than one year 162 One to two years 94 Two to three years 111 Three to four years 100 Four to five years 92 Six to ten years 449 |
Principal actuarial assumptions | 12.31.2018 12.31.2017 Discount rate 5% 5% Salaries increase 1% 1% Average inflation 27% 21% |
Sensitivity analyses on actuarial assumptions variations | 12.31.2018 Discount rate: 4% Obligation 1,637 Variation 137 10% Discount rate: 6% Obligation 1,383 Variation (117) (9%) Salaries increase: 0% Obligation 1,425 Variation (75) (6%) Salaries increase: 2% Obligation 1,587 Variation 87 6% |
Salaries and social security payable | 12.31.2018 12.31.2017 Non current Seniority - based bonus 148 171 Early retirements payable 15 6 Total non current 163 177 Current Salaries and social security contributions 918 855 Provision for vacations 711 991 Provision for gratifications and annual bonus for efficiency 1,087 1,327 Early retirements payable 10 7 Total current 2,726 3,180 |
12. FINANCIAL ASSETS AND LIAB_2
12. FINANCIAL ASSETS AND LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Financial Assets And Liabilities Tables Abstract | |
Financial assets at fair value through profit and loss | 12.31.2018 12.31.2017 Non current Shares 422 286 Total non current 422 286 Current Government bonds 11,234 7,418 Shares 44 - Investment funds 3,995 14,158 Total current 15,273 21,576 |
Trade and other receivables | Note 12.31.2018 12.31.2017 Non Current CAMMESA Receivable 2,647 4,234 Other 853 9 Trade receivables, net 3,500 4,243 Non Current Tax credits 503 241 Allowance for tax credits (11) (21) Related parties 17 1,860 1,172 Prepaid expenses 28 30 Financial credit 30 55 Guarantee deposits 1 136 Contractual receivables in Ecuador 6 - 1,474 Receivable for sale of property, plant and equipment 112 99 Natural Gas Surplus Injection Promotion Program 2,671 - Credit with RDSA 20 766 - Other 61 15 Other receivables, net 6,021 3,201 Total non current 9,521 7,444 Current Receivables from energy distribution sales 8,392 9,029 Receivables from MAT 1,035 644 CAMMESA 4,943 4,263 CAMMESA Receivable 574 622 Receivables from oil and gas sales 2,923 1,135 Receivables from refinery and distribution sales 218 1,414 Receivables from petrochemistry sales 2,544 1,364 Related parties 17 384 251 Other 139 201 Allowance for doubtful accounts (1,266) (822) Trade receivables, net 19,886 18,101 Current Tax credits 1,020 1,905 Advances to suppliers 83 16 Advances to employees 8 37 Related parties 17 201 317 Prepaid expenses 61 102 Receivables for non-electrical activities 539 322 Financial credit 209 123 Guarantee deposits 475 1,555 Natural Gas Surplus Injection Promotion Program 2,667 3,827 Insurance to recover 212 298 Expenses to be recovered 417 548 Credits for the sale of property, plant and equipment 783 573 Other 213 778 Allowance for other receivables (285) (235) Other receivables, net 6,603 10,166 Total current 26,489 28,267 |
Allowance for the impairment of trade receivables | Note 12.31.2018 12.31.2017 12.31.2016 At the beginning 4.1 975 790 218 Allowance for impairment 1,266 480 499 Utilizations (389) (76) (59) Reversal of unused amounts (31) (2) (46) Gain on net monetary position (555) (179) (92) Reclasification to assets held for sale - (191) - Increase for purchases of subsidiaries - - 270 At the end of the year 1,266 822 790 |
Allowance for the impairment of other receivables | Note 12.31.2018 12.31.2017 12.31.2016 At the beginning 4.1 217 372 655 Allowance for impairment 248 55 97 Decreases - (25) (24) Incraese for susidiaries acquisition - - 154 (Gain) loss on net monetary position (115) 15 (153) Reversal of unused amounts (54) (161) (357) At the end of the year 296 256 372 |
Cash and cash equivalents | 12.31.2018 12.31.2017 Cash 17 44 Banks 3,133 483 Time deposits 5,947 652 Total 9,097 1,179 |
Borrowings | Non Current Note 12.31.2018 12.31.2017 Financial borrowings 9,743 8,785 Corporate bonds 54,927 40,993 CAMMESA financing 4,519 5,017 Related parties 17 - 21 69,189 54,816 Current Financial borrowings 11,811 7,527 Corporate bonds 934 1,091 CAMMESA financing 127 - Related parties 17 29 5 12,901 8,623 |
Borrowings maturity and exposure to interest rates | Fixed rate 12.31.2018 31.12.2017 Less than one year 9,032 6,891 One to two years 4,109 812 Two to five years 10,732 11,087 Up to five years 46,825 34,421 70,698 53,211 Floating rates Less than one year 2,680 877 One to two years 1,809 901 Two to five years 2,106 3,780 Up to five years 2,430 2,873 9,025 8,431 Non interest accrues Less than one year 1,189 855 One to two years 31 - Two to five years 1,147 784 Up to five years - 158 2,367 1,797 |
Changes in borrowings | 12.31.2018 12.31.2017 12.31.2016 At the beginning 63,439 47,855 19,821 Proceeds from borrowings 9,250 47,130 35,918 Payment of borrowings (9,057) (27,650) (12,654) Accrued interest 6,766 5,396 5,740 Payment of borrowings' interests (5,004) (4,072) (3,212) Net foreign currency exchange difference 46,895 8,546 3,723 Increase for subsidiries acquisition - - 14,155 Costs capitalized in property, plant and equipment 282 546 516 Decrease through shares of subsidiaries (1) - - (2,493) Decrease through offsetting with other credits (2) - - (4,125) Decrease through offsetting with trade receivables - (6) (512) Gain on net monetary position (29,974) (14,301) (7,250) Repurchase and redemption of corporate bonds (448) (47) (1,888) Other financial results (59) 42 116 At the end of the year 82,090 63,439 47,855 |
Borrowings composition | Type of instrument Company Currency Residual value Interest Rate Expiration Book value as of 12.31.2018 Corporate bonds: 2022 CB Edenor US$ 166 Fixed 10% 2022 6,360 Class 4 CB PAMPA US$ 34 Fixed 6% 10/30/2020 1,291 Class E CB PAMPA ARS 607 Fixed Badlar 11/13/2020 607 T Series CB (1) PAMPA US$ 741 Fixed 8% 1/24/2027 28,404 Class 1 CB (2) PAMPA US$ 500 Fixed 7% 7/21/2023 19,228 55,890 Regulatory: CAMMESA 2014 Agreement PAMPA ARS 855 Variable CAMMESA (4) 2,158 CAMMESA Mapro PAMPA ARS 174 Variable CAMMESA (3) 254 CAMMESA Mapro CPB ARS 1,085 Variable CAMMESA (3) 2,234 4,646 Financial loans: PAMPA U$S 17,116 Fixed Between 2.9% and 7.5% Feb-2018 to May-2021 17,357 PAMPA U$S 1,746 Variable 6% + Libor May-2024 1,732 PAMPA ARS 550 Fixed Between 22% y 22.25% Sep-2019 to Oct-2019 561 Edenor U$S 1,885 Fixed Libor + 4.27% 10/11/2020 1,904 21,554 82,090 Type of instrument Company Currency Residual value Interest Rate Expiration Book value as of 12.31.2017 Corporate bonds: 2022 CB Edenor US$ 172 Fixed 10% 2022 4,903 Class 4 CB PAMPA US$ 34 Fixed 6% 10/30/2020 942 Class E CB PAMPA ARS 575 Variable Badlar 11/13/2020 871 Class A CB PAMPA ARS 282 Variable Badlar 10/5/2018 439 T Series CB PAMPA (1) US$ 500 Fixed 7% 7/21/2023 14,013 Class 1 CB PAMPA (2) US$ 750 Fixed 8% 1/24/2027 20,942 42,110 Regulatory: CAMMESA 2014 Agreement PAMPA ARS 855 Variable CAMMESA (4) 2,321 CAMMESA Mapro PAMPA ARS 140 Variable CAMMESA (3) 285 CAMMESA Mapro CPB ARS 1,088 Variable CAMMESA (3) 2,411 5,017 Financial loans: PAMPA U$S 352 Fixed Between 2.9% and 7.5% Feb-2018 to May-2021 9,786 PAMPA U$S 63 Variable 6% + Libor Sep-2018 to May-2024 1,719 PAMPA ARS 2,270 Fixed Between 22% y 22.25% Aug-2018 to Oct-2019 3,417 Edenor U$S 50 Fixed Libor + 4.27% 10/11/2020 1,390 16,312 63,439 |
Trade and other payables | Non Current 12.31.2018 12.31.2017 Customer contributions 112 118 Funding contributions for substations 33 89 Customer guarantees 141 149 Trade payables 286 356 ENRE Penalties and discounts 5,097 5,738 Loans (mutuums) with CAMMESA 2,282 2,782 Compensation agreements 251 183 Liability with FOTAE 207 281 Payment agreement with ENRE 37 108 Other 2 9 Other payables 7,876 9,101 Total non current 8,162 9,457 Current Note 12.31.2018 12.31.2017 Suppliers 9,371 12,826 CAMMESA 11,909 11,214 Customer contributions 15 28 Discounts to customers 37 55 Funding contributions substations 17 12 Customer advances 244 303 Related parties 17 245 117 Other 19 19 Trade payables 21,857 24,574 ENRE Penalties and discounts 1,836 425 Related parties 17 11 17 Advances for works to be executed 14 21 Compensation agreements 481 830 Payment agreements with ENRE 65 93 Other creditors 305 303 Other 187 392 Other payables 2,899 2,081 Total current 24,756 26,655 |
Financial instruments | As of December 31, 2018 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 34,217 122 34,339 1,671 36,010 Financial assets at amortized cost Government securities 1,330 - 1,330 - 1,330 Financial assets at fair value through profit and loss Government securities - 11,234 11,234 - 11,234 Shares - 466 466 - 466 Investment funds - 3,995 3,995 - 3,995 Derivative financial instruments - 3 3 - 3 Cash and cash equivalents 9,097 - 9,097 - 9,097 Total 44,644 15,820 60,464 1,671 62,135 Liabilities Trade and other liabilities 22,833 576 23,409 9,509 32,918 Borrowings 82,090 - 82,090 - 82,090 Derivative financial instruments - 49 49 - 49 Total 104,923 625 105,548 9,509 115,057 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 31,761 870 32,631 3,080 35,711 Financial assets at amortized cost Government securities 16 - 16 - 16 Trusts 21 - 21 - 21 Financial assets at fair value through profit and loss Government securities - 7,418 7,418 - 7,418 Shares - 286 286 - 286 Investment funds - 14,158 14,158 - 14,158 Derivative financial instruments - 6 6 - 6 Cash and cash equivalents 1,179 - 1,179 - 1,179 Total 32,977 22,738 55,715 3,080 58,795 Liabilities Trade and other liabilities 26,789 2,783 29,572 6,540 36,112 Borrowings 63,439 - 63,439 - 63,439 Total 90,228 2,783 93,011 6,540 99,551 |
Income, expenses, gains and losses from financial instruments | As of December 31, 2018 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 3,555 196 3,751 - 3,751 Interest expense (10,902) - (10,902) (844) (11,746) Foreign exchange, net (32,653) 3,260 (29,393) (3,156) (32,549) Results from financial instruments at fair value - 2,415 2,415 - 2,415 Discounted value measurement (2,713) - (2,713) - (2,713) Other financial results 363 - 363 (79) 284 Total (42,350) 5,871 (36,479) (4,079) (40,558) 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 2,076 257 2,333 - 2,333 Interest expense (8,173) - (8,173) (415) (8,588) Foreign exchange, net (7,138) 1,850 (5,288) (531) (5,819) Results from financial instruments at fair value - 2,324 2,324 - 2,324 Discounted value measurement (213) - (213) - (213) Other financial results (167) - (167) (61) (228) Total (13,615) 4,431 (9,184) (1,007) (10,191) |
Fair value of financial instruments | As of December 31, 2018 Level 1 Level 2 Level 3 Total Assets Financial assets at fair value through profit and loss Government securities 11,234 - - 11,234 Shares 44 - 422 466 Investment funds 3,995 - - 3,995 Derivative financial instruments - 3 - 3 Other receivables 122 - - 122 Total assets 15,395 3 422 15,820 Liabilities Derivative financial instruments - 49 - 49 Total liabilities - 49 - 49 As of December 31, 2017 Level 1 Level 2 Level 3 Total Assets Financial assets at fair value through profit and loss Government securities 7,418 - - 7,418 Trust - - 221 221 Investment funds 14,158 - - 14,158 Derivative financial instruments - 5 - 5 Other receivables 870 - - 870 Total assets 22,446 5 221 22,672 Liabilities Derivative financial instruments - 120 - 120 Total liabilities - 120 - 120 |
13. EQUITY COMPONENTS (Tables)
13. EQUITY COMPONENTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity Components Tables Abstract | |
Earnings (loss) per share | 12.31.2018 12.31.2017 12.31.2016 (Loss) earning for continuing operations attributable to the equity holders of the Company 5,506 12,867 2,651 Weighted average amount of outstanding shares 1,959 1,936 1,736 Basic and diluted (loss) earnings per share from continuing operations 2.8106 6.6462 1.5271 Earning for discontinued operations attributable to the equity holders of the Company 2,929 (2,068) 224 Weighted average amount of outstanding shares 1,959 1,936 1,736 Basic and diluted earnings per share from 1.4952 (1.0682) 0.1290 Total (loss) earning attributable to the equity holders of the Company 8,435 10,799 2,875 Weighted average amount of outstanding shares 1,959 1,936 1,736 Basic and diluted earnings per share 4.3058 5.5780 1.6561 |
14. STATEMENT OF CASH FLOWS' _2
14. STATEMENT OF CASH FLOWS' COMPLEMENTARY INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statement Of Cash Flows Complementary Information Tables Abstract | |
Adjustments to reconcile net profit (loss) to cash flows generated by operating activities | Note 12.31.2018 12.31.2017 12.31.2016 Income tax 658 (985) (1,603) Accrued interest 8,254 6,255 7,072 Depreciations and amortizations 9, 10.1 and 10.2 8,816 7,739 7,102 Constitution of allowances, net 10.4 1,061 418 497 Constitution (recovery) of provisions, net 10.4 1,180 (150) 951 Share of profit from joint ventures and associates 5.3 (4,464) (1,813) (286) Income from the sale of associates 5.1 (1,052) - - Accrual of defined benefit plans 9, 10.1 and 10.2 196 518 493 Net exchange differences 10.5 32,048 5,819 1,649 Result from measurement at present value 10.5 2,792 282 138 Changes in the fair value of financial instruments (2,372) (2,324) (2,368) Results from property, plant and equipment sale and decreases 126 56 181 Impairment of property, plant and equipment and intangible assets 1,195 - - Dividends received 10.4 (29) (56) (13) Compensation agreements 10.1 and 10.2 196 1,055 831 Result from the sale of shareholdings in companies and property, plant and equipment 5.1 (1,644) - (1,015) Recognition of income - provisional remedies Note MEyM No. 2016-04484723 - - (2,380) Income recognition on account of the RTI - SE Res. No. 32/15 - - (173) Higher costs recognition - SE Res. No. 250/13 and subsequent Notes - - (887) Onerous contract (Ship or pay) 10.4 265 142 (317) Gain on monetary position 10.5 (23,696) (11,478) (5,770) Other 23 306 84 23,553 5,784 4,186 |
Changes in operating assets and liabilities | 12.31.2018 12.31.2017 12.31.2016 Increase in trade receivables and other receivables (6,594) (2,430) 342 (Increase) decrease in inventories (718) (425) 575 Increase in trade payables and other payables 836 385 (632) Increase in deferred income 88 1 (4) Increase (decrease) in salaries and social security payable 511 (55) 151 Decrease in defined benefit plans (130) (115) (462) Increase (Decrease) in tax payables 1,319 (988) 3,392 Decrease in provisions (2,274) (1,803) (494) Constitution of guarantees of derivative financial instruments - - (453) Income tax and minimum notional income tax paid (1,841) (2,119) (927) (Payments) proceeds from derivative financial instruments, net (897) 873 120 Net cash (used in) generated by operating activities from discontinued operations (1,726) 3,291 2,902 Total changes in operating assets and liabilities (11,426) (3,385) 4,510 |
Significant non-cash transactions | 12.31.2018 12.31.2017 12.31.2016 Significant non-cash transactions from continuing operations : Acquisition of property, plant and equipment through an increase in trade payables 639 (3,898) (1,128) Borrowing costs capitalized in property, plant and equipment (282) (602) (880) Decreases of property, plant and equipment through an increase in other receivables 439 - - Decrease in borrowings through offsetting with trade receivables - - (508) Increase in asset retirement obligation provision 1,272 (59) (332) Constitution of guarantee of derivative financial instruments, net through the delivery of financial assets at fair value through profit or loss (819) 718 200 Outstanding receivable for the sale of interests in subsidiaries and financial assets - - (2,521) Decrease in loans through compensation with trade receivables and other receivables - - (2,477) Decrease in loans through compensation with other credits - - (4,098) Collection of other credits through the delivery of government bonds - - 1,055 Significant non-cash transactions from Acquisition of property, plant and equipment through an increase in trade payables - (13) (82) Decrease (increase) in asset retirement obligation provision - 464 (429) Dividends pending collection - 551 - |
17. RELATED PARTIES' TRANSACT_2
17. RELATED PARTIES' TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Related Parties Transactions Tables Abstract | |
Sales of goods and services | 12.31.2018 12.31.2017 12.31.2016 Joint ventures Transener (1) 20 48 32 TGS (2) 1,937 862 534 Greenwind (3) 12 - - Other related parties SACDE (3) 35 - - CYCSA - - 29 Refinor (4) 593 205 95 Oldelval (5) 6 6 2 2,603 1,121 692 |
Purchases of goods and services | 12.31.2018 12.31.2017 12.31.2016 Joint ventures Transener (3) (11) (21) TGS (1) (783) (319) (277) SACME (82) (77) (74) Other related parties SACDE (4) (69) - - Origenes Vida - (21) (13) Refinor (2) (1,275) (639) (246) Oldelval (3) (60) (120) (65) (2,272) (1,187) (696) |
Fees for services | 12.31.2018 12.31.2017 12.31.2016 Other related parties Salaverri, Dellatorre, Burgio & Wetzler (49) (27) (48) (49) (27) (48) |
Other operating expenses | 12.31.2018 12.31.2017 12.31.2016 Other related parties OCP (1) (265) - - Foundation (2) (76) (55) (27) (341) (55) (27) |
Financial income | 12.31.2018 12.31.2017 12.31.2016 Joint ventures TGS 122 106 50 122 106 50 |
Financial expenses | 12.31.2018 12.31.2017 12.31.2016 Other related parties Grupo EMES - - (876) Orígenes Retiro (17) (10) (15) (17) (10) (891) |
Corporate bonds transactions | 12.31.2018 12.31.2017 12.31.2016 Other related parties Orígenes Retiro - (10) (1,399) - (10) (1,399) |
Dividends received | 12.31.2018 12.31.2017 12.31.2016 Other related parties CIESA 657 - 8 Oldelval 50 12 - TJSM 13 13 6 TMB 15 15 6 735 40 20 |
Payment of dividends | Other related parties 12.31.2018 12.31.2017 EMESA (82) (72) APCO Oil - (72) (82) (144) |
Balances with related parties | As of December 31, 2018 Trade receivables Other receivables Current Non Current Current Joint ventures: TGS 288 1,436 158 Greenwind - 419 17 SACME - 5 - Associates and other related parties: Ultracore - - 20 Refinor 91 - - SACDE 5 - 5 Other - - 1 384 1,860 201 As of December 31, 2018 Trade payables Other payables Borrowings Current Current Current Joint ventures: Transener 4 - - TGS 105 - - SACME - 8 - Associates and other related parties: Orígenes Retiro - - 29 OCP - 3 - Refinor 136 - - 245 11 29 As of December 31, 2017 Trade receivables Other receivables Current Non Current Current Joint ventures: Transener 7 - - TGS 191 1,165 110 Greenwind - - 188 SACME - 7 - Associates and other related parties: Ultracore - - 15 Refinor 15 - - SACDE 37 - 3 Other 1 - 1 251 1,172 317 As of December 31, 2017 Trade payables Other payables Borrowings Provisions Current Current Non Current Current Current Joint ventures: Transener 1 - - - - TGS 25 - - - - SACME - 7 - - - Associates and other related parties: Orígenes Seguro de vida - - - 3 - Orígenes Retiro - - 21 2 - OCP - - - - 576 Refinor 78 - - - - Oldelval 13 - - - - Other - 10 - - - 117 17 21 5 576 |
18. LEASES (Tables)
18. LEASES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Leases Tables Abstract | |
Future minimum payments of operating leases | 12.31.2018 12.31.2017 2018 - 124 2019 155 125 2020 138 52 2021 103 5 Total future minimum lease payments 396 306 |
Future minimum collections from operating leases | 12.31.2018 12.31.2017 2018 - 202 2019 174 194 Total future minimum lease collections 174 396 |
22. OIL AND GAS RESERVES (Table
22. OIL AND GAS RESERVES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Oil And Gas Reserves Tables Abstract | |
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 9,179 11,604 5,818 7,990 14,997 19,594 Total at 12.31.2018 9,179 11,604 5,818 7,990 14,997 19,594 |
2. REGULATORY FRAMEWORK (Detail
2. REGULATORY FRAMEWORK (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Generator in operation 1 | |
DisclosureOfRegulatoryFrameworkLineItems [Line Items] | |
Generator | CTG |
Generating unit | GUEMTG01 |
Tecnology | TG |
Power | 101 MW |
Applicable regime | Energy Plus Res. No. 1,281/06 (1) |
Generator in operation 2 | |
DisclosureOfRegulatoryFrameworkLineItems [Line Items] | |
Generator | CTG |
Generating unit | GUEMTV11 |
Tecnology | TV |
Power | ?100 MW |
Applicable regime | SE Resolutions No. 19/2017 |
Generator in operation 3 | |
DisclosureOfRegulatoryFrameworkLineItems [Line Items] | |
Generator | CTG |
Generating unit | GUEMTV12 |
Tecnology | TV |
Power | ?100 MW |
Applicable regime | SE Resolutions No. 19/2017 |
Generator in operation 4 | |
DisclosureOfRegulatoryFrameworkLineItems [Line Items] | |
Generator | CTG |
Generating unit | GUEMTV13 |
Tecnology | TV |
Power | >100 MW |
Applicable regime | SE Resolutions No. 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 | >100 MW |
Applicable regime | SE Resolutions No. 19/2017 |
Generator in operation 7 | |
DisclosureOfRegulatoryFrameworkLineItems [Line Items] | |
Generator | CPB |
Generating unit | BBLATV30 |
Tecnology | TV |
Power | >100 MW |
Applicable regime | SE Resolutions No. 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 | >50 MW |
Applicable regime | SE Resolutions No. 19/2017 |
Generator in operation 10 | |
DisclosureOfRegulatoryFrameworkLineItems [Line Items] | |
Generator | CTLL |
Generating unit | LDLATG02 |
Tecnology | TG |
Power | >50 MW |
Applicable regime | SE Resolutions No. 19/2017 |
Generator in operation 11 | |
DisclosureOfRegulatoryFrameworkLineItems [Line Items] | |
Generator | CTLL |
Generating unit | LDLATG03 |
Tecnology | TG |
Power | >50 MW |
Applicable regime | SE Resolutions No. 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. 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 | >150 MW |
Applicable regime | SE Resolutions No. 19/2017 |
Generator in operation 16 | |
DisclosureOfRegulatoryFrameworkLineItems [Line Items] | |
Generator | CTGEBA |
Generating unit | GEBATG03 |
Tecnology | TG |
Power | 164 MW |
Applicable regime | Energy Plus Res. No. 1,281/06 |
Generator in operation 17 | |
DisclosureOfRegulatoryFrameworkLineItems [Line Items] | |
Generator | HIDISA |
Generating unit | AGUA DEL TORO |
Tecnology | HI |
Power | HI – Media 120<P?300 |
Applicable regime | SE Resolutions No. 19/2017 |
Generator in operation 18 | |
DisclosureOfRegulatoryFrameworkLineItems [Line Items] | |
Generator | HIDISA |
Generating unit | EL TIGRE |
Tecnology | HI |
Power | Renewable ? 50 |
Applicable regime | SE Resolutions No. 19/2017 |
Generator in operation 19 | |
DisclosureOfRegulatoryFrameworkLineItems [Line Items] | |
Generator | HIDISA |
Generating unit | LOS REYUNOS |
Tecnology | HI |
Power | HI – Media 120<P?300 |
Applicable regime | SE Resolutions No. 19/2017 |
Generator in operation 20 | |
DisclosureOfRegulatoryFrameworkLineItems [Line Items] | |
Generator | HINISA |
Generating unit | NIHUIL I |
Tecnology | HI |
Power | HI – Small 50<P?120 |
Applicable regime | SE Resolutions No. 19/2017 |
Generator in operation 21 | |
DisclosureOfRegulatoryFrameworkLineItems [Line Items] | |
Generator | HINISA |
Generating unit | NIHUIL II |
Tecnology | HI |
Power | HI – Small 50<P?120 |
Applicable regime | SE Resolutions No. 19/2017 |
Generator in operation 22 | |
DisclosureOfRegulatoryFrameworkLineItems [Line Items] | |
Generator | HINISA |
Generating unit | NIHUIL III |
Tecnology | HI |
Power | HI – Small 50<P?120 |
Applicable regime | SE Resolutions No. 19/2017 |
Generator in operation 23 | |
DisclosureOfRegulatoryFrameworkLineItems [Line Items] | |
Generator | HPPL |
Generating unit | PPL1HI |
Tecnology | HI |
Power | HI – Media 120<P?300 |
Applicable regime | SE Resolutions No. 19/2017 |
Generator in operation 24 | |
DisclosureOfRegulatoryFrameworkLineItems [Line Items] | |
Generator | HPPL |
Generating unit | PPL2HI |
Tecnology | HI |
Power | HI – Media 120<P?300 |
Applicable regime | SE Resolutions No. 19/2017 |
Generator in operation 25 | |
DisclosureOfRegulatoryFrameworkLineItems [Line Items] | |
Generator | HPPL |
Generating unit | PPL3HI |
Tecnology | HI |
Power | HI – Media 120<P?300 |
Applicable regime | SE Resolutions No. 19/2017 |
Generator in operation 26 | |
DisclosureOfRegulatoryFrameworkLineItems [Line Items] | |
Generator | Ecoenergía |
Generating unit | CERITV01 |
Tecnology | TV |
Power | 15 MW |
Applicable regime | Energy Plus Res. No. 1,281/06 (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) |
Generator in operation 28 | |
DisclosureOfRegulatoryFrameworkLineItems [Line Items] | |
Generator | P.E. M. Cebreiro |
Generating unit | CORTEO01 |
Tecnology | Wind |
Power | 100 MW |
Applicable regime | Renovar (1) |
2. REGULATORY FRAMEWORK (Deta_2
2. REGULATORY FRAMEWORK (Details 1) | 12 Months Ended |
Dec. 31, 2018 | |
Generator in construction 1 | |
DisclosureOfRegulatoryFrameworkLineItems [Line Items] | |
Generator | CTLL |
Generating unit | MG |
Tecnology | 15 MW |
Applicable regime | SE Resolutions No. 19/2017 |
Generator in construction 2 | |
DisclosureOfRegulatoryFrameworkLineItems [Line Items] | |
Generator | CTGEBA |
Generating unit | CC |
Tecnology | 383 MW |
Applicable regime | Resolución No. 287/2017 |
Generator in construction 3 | |
DisclosureOfRegulatoryFrameworkLineItems [Line Items] | |
Generator | PEPE II |
Generating unit | Wind |
Tecnology | 53 MW |
Applicable regime | MAT Renovable Res. 281/2017 |
Generator in construction 4 | |
DisclosureOfRegulatoryFrameworkLineItems [Line Items] | |
Generator | PEPE III |
Generating unit | Wind |
Tecnology | 53 MW |
Applicable regime | MAT Renovable Res. 281/2017 |
4. ACCOUNTING POLICIES (Details
4. ACCOUNTING POLICIES (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Undue | |
Statement Line Items [Line Items] | |
Distribution of energy | 8.00% |
Rest of business segments | 0.32% |
30 days | |
Statement Line Items [Line Items] | |
Distribution of energy | 8.00% |
Rest of business segments | 0.93% |
60 days | |
Statement Line Items [Line Items] | |
Distribution of energy | 12.00% |
Rest of business segments | 8.11% |
90 days | |
Statement Line Items [Line Items] | |
Distribution of energy | 19.00% |
Rest of business segments | 19.61% |
120 days | |
Statement Line Items [Line Items] | |
Distribution of energy | 26.00% |
Rest of business segments | 35.69% |
150 days | |
Statement Line Items [Line Items] | |
Distribution of energy | 59.00% |
Rest of business segments | 45.63% |
180 days | |
Statement Line Items [Line Items] | |
Distribution of energy | 69.00% |
Rest of business segments | 59.00% |
+180 days | |
Statement Line Items [Line Items] | |
Distribution of energy | 69.00% |
Rest of business segments | 63.01% |
4. ACCOUNTING POLICIES (Detai_2
4. ACCOUNTING POLICIES (Details 1) $ in Millions | Dec. 31, 2018ARS ($) |
IAS 39 | |
Statement Line Items [Line Items] | |
Loss allowance for trade receivables | $ 822 |
Loss allowance for other receivables | 256 |
Adjustment to the opening balance of retained earnings | |
Statement Line Items [Line Items] | |
Loss allowance for trade receivables | 153 |
Loss allowance for other receivables | (39) |
IAS 9 | |
Statement Line Items [Line Items] | |
Loss allowance for trade receivables | 975 |
Loss allowance for other receivables | $ 217 |
4. ACCOUNTING POLICIES (Detai_3
4. ACCOUNTING POLICIES (Details 2) | 12 Months Ended |
Dec. 31, 2018 | |
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 |
5. GROUP STRUCTURE (Details)
5. GROUP STRUCTURE (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2018ARS ($) | |
Refining y distribution | |
DisclosureOfGroupStructureLineItems [Line Items] | |
Sale price | $ 1,044 |
Book value of assets sold and costs associated with the transaction | (1,044) |
Result for sale | 0 |
PELSA | |
DisclosureOfGroupStructureLineItems [Line Items] | |
Sale price | 10,197 |
Book value of assets sold and costs associated with the transaction | (8,553) |
Result for sale | 1,644 |
Interests | 133 |
Income tax | (818) |
Included in results | 959 |
Other comprehensive income (loss) | |
Reclassification from exchange differences on translation | 223 |
Income tax | (67) |
Included in Other comprehensive income | 156 |
Total comprehensive income | $ 1,115 |
5. GROUP STRUCTURE (Details 1)
5. GROUP STRUCTURE (Details 1) - ARS ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
DisclosureOfGroupStructureLineItems [Line Items] | |||
Revenue | $ 110,080 | $ 82,008 | $ 51,262 |
Cost of sales | (74,161) | (59,339) | (42,851) |
Gross profit | 35,919 | 22,669 | 8,411 |
Selling expenses | (6,451) | (4,776) | (4,491) |
Administrative expenses | (7,751) | (7,481) | (7,511) |
Exploration expenses | (45) | (71) | (199) |
Other operating income | 6,842 | 5,608 | 8,390 |
Other operating expenses | (7,526) | (3,892) | (3,896) |
Operating income (loss) | 25,309 | 13,870 | 2,005 |
Gain (Loss) on monetary position | 23,696 | 11,478 | 5,770 |
Financial income | 3,751 | 2,333 | 1,744 |
Financial expenses | (11,944) | (8,750) | (8,154) |
Other financial results | (32,365) | (3,774) | 505 |
Financial results, net | (16,862) | 1,287 | (135) |
Profit (loss) before income tax | 8,447 | 15,157 | 1,870 |
Income tax | (658) | 985 | 1,603 |
Profit (loss) of the year from discontinued operations | 3,019 | (1,893) | 152 |
Other comprehensive income (loss) items that will not be reclassified to profit or loss | |||
Income tax | 41 | 4 | 12 |
Other comprehensive income (loss) Items that may be reclassified to profit or loss | |||
Total comprehensive income (loss) of the year from discontinued operations | 11,001 | 13,818 | 3,745 |
Total comprehensive income (loss) of the year from discontinued operations attributable to: | |||
Discontinued operations | 2,929 | (2,068) | 173 |
Total comprehensive income (loss) of the year attributable to from discontinued operations | |||
Discontinued operations | 3,177 | (2,352) | 322 |
Oil and gas | |||
DisclosureOfGroupStructureLineItems [Line Items] | |||
Revenue | 2,481 | 9,755 | 5,159 |
Cost of sales | (1,233) | (9,468) | (4,077) |
Gross profit | 1,248 | 287 | 1,082 |
Selling expenses | (72) | (298) | (132) |
Administrative expenses | (46) | (208) | (53) |
Exploration expenses | (4) | (31) | (86) |
Other operating income | 54 | 604 | 494 |
Other operating expenses | (231) | (294) | (1,378) |
Result from the sale of shareholdings in companies and property, plant and equipment | 1,644 | ||
Impairment of property, plant and equipment | 0 | ||
Operating income (loss) | 2,593 | 60 | (73) |
Gain (Loss) on monetary position | 255 | ||
Financial income | 148 | 36 | 80 |
Financial expenses | (20) | 0 | (21) |
Other financial results | (135) | (375) | (90) |
Financial results, net | 248 | (339) | (31) |
Profit (loss) before income tax | 2,841 | (279) | (104) |
Income tax | (973) | (1,049) | (50) |
Profit (loss) of the year from discontinued operations | 1,868 | (1,328) | (154) |
Other comprehensive income (loss) items that will not be reclassified to profit or loss | |||
Remeasurements related to defined benefit plans | (11) | (150) | |
Income tax | (67) | 67 | 46 |
Reclasification from exchange differences on translation | 223 | ||
Other comprehensive income (loss) Items that may be reclassified to profit or loss | |||
Exchange differences on translation | 156 | (606) | 221 |
Other comprehensive income (loss) of the year from discontinued operations | 312 | (550) | 117 |
Total comprehensive income (loss) of the year from discontinued operations | 2,180 | (1,878) | (37) |
Total comprehensive income (loss) of the year from discontinued operations attributable to: | |||
Owners of the company | 1,778 | (1,503) | (133) |
Non - controlling interest | 90 | 175 | (21) |
Discontinued operations | 1,868 | (1,328) | (154) |
Total comprehensive income (loss) of the year attributable to from discontinued operations | |||
Owners of the company | 2,026 | (1,804) | (2) |
Non - controlling interest | 154 | (74) | (35) |
Discontinued operations | 2,180 | (1,878) | (37) |
Refining y distribution | |||
DisclosureOfGroupStructureLineItems [Line Items] | |||
Revenue | 15,900 | 27,439 | 13,759 |
Cost of sales | (13,606) | (23,313) | (12,547) |
Gross profit | 2,294 | 4,126 | 1,212 |
Selling expenses | (1,243) | (3,192) | (1,590) |
Administrative expenses | (152) | (703) | (48) |
Exploration expenses | 0 | 0 | 0 |
Other operating income | 211 | 365 | 964 |
Other operating expenses | (378) | (484) | (206) |
Result from the sale of shareholdings in companies and property, plant and equipment | 0 | ||
Impairment of property, plant and equipment | (1,040) | ||
Operating income (loss) | 732 | (928) | 332 |
Gain (Loss) on monetary position | 80 | ||
Financial income | 27 | 25 | 13 |
Financial expenses | (10) | (27) | (19) |
Other financial results | 824 | (20) | (84) |
Financial results, net | 921 | (22) | (90) |
Profit (loss) before income tax | 1,653 | (950) | 242 |
Income tax | (486) | 351 | (84) |
Profit (loss) of the year from discontinued operations | 1,167 | (599) | 158 |
Other comprehensive income (loss) items that will not be reclassified to profit or loss | |||
Remeasurements related to defined benefit plans | 26 | 29 | |
Income tax | 0 | (9) | (11) |
Reclasification from exchange differences on translation | 0 | ||
Other comprehensive income (loss) Items that may be reclassified to profit or loss | |||
Exchange differences on translation | 0 | 0 | 0 |
Other comprehensive income (loss) of the year from discontinued operations | 0 | 17 | 18 |
Total comprehensive income (loss) of the year from discontinued operations | 1,167 | (582) | 176 |
Total comprehensive income (loss) of the year from discontinued operations attributable to: | |||
Owners of the company | 1,167 | (599) | 158 |
Non - controlling interest | 0 | 0 | 0 |
Discontinued operations | 1,167 | (599) | 158 |
Total comprehensive income (loss) of the year attributable to from discontinued operations | |||
Owners of the company | 1,167 | (582) | 176 |
Non - controlling interest | 0 | 0 | 0 |
Discontinued operations | 1,167 | (582) | 176 |
Eliminations | |||
DisclosureOfGroupStructureLineItems [Line Items] | |||
Revenue | (3,388) | (11,177) | (5,926) |
Cost of sales | 3,419 | 11,211 | 6,157 |
Gross profit | 31 | 34 | 231 |
Selling expenses | 0 | 0 | 0 |
Administrative expenses | 0 | 0 | 0 |
Exploration expenses | 0 | 0 | 0 |
Other operating income | 0 | 0 | (792) |
Other operating expenses | 0 | 0 | 792 |
Result from the sale of shareholdings in companies and property, plant and equipment | 0 | ||
Impairment of property, plant and equipment | 0 | ||
Operating income (loss) | 31 | 34 | 231 |
Gain (Loss) on monetary position | (47) | ||
Financial income | 0 | 0 | 0 |
Financial expenses | 0 | 0 | 0 |
Other financial results | 0 | 0 | 0 |
Financial results, net | (47) | 0 | 0 |
Profit (loss) before income tax | (16) | 34 | 231 |
Income tax | 0 | 0 | (83) |
Profit (loss) of the year from discontinued operations | (16) | 34 | 148 |
Other comprehensive income (loss) items that will not be reclassified to profit or loss | |||
Remeasurements related to defined benefit plans | 0 | 0 | |
Income tax | 0 | 0 | 0 |
Reclasification from exchange differences on translation | 0 | ||
Other comprehensive income (loss) Items that may be reclassified to profit or loss | |||
Exchange differences on translation | 0 | 0 | 0 |
Other comprehensive income (loss) of the year from discontinued operations | 0 | 0 | 0 |
Total comprehensive income (loss) of the year from discontinued operations | (16) | 34 | 148 |
Total comprehensive income (loss) of the year from discontinued operations attributable to: | |||
Owners of the company | (16) | 34 | 148 |
Non - controlling interest | 0 | 0 | 0 |
Discontinued operations | (16) | 34 | 148 |
Total comprehensive income (loss) of the year attributable to from discontinued operations | |||
Owners of the company | (16) | 34 | 148 |
Non - controlling interest | 0 | 0 | 0 |
Discontinued operations | (16) | 34 | 148 |
Total | |||
DisclosureOfGroupStructureLineItems [Line Items] | |||
Revenue | 14,993 | 26,017 | 12,992 |
Cost of sales | (11,420) | (21,570) | (10,467) |
Gross profit | 3,573 | 4,447 | 2,525 |
Selling expenses | (1,315) | (3,490) | (1,722) |
Administrative expenses | (198) | (911) | (101) |
Exploration expenses | (4) | (31) | (86) |
Other operating income | 265 | 969 | 666 |
Other operating expenses | (609) | (778) | (792) |
Result from the sale of shareholdings in companies and property, plant and equipment | 1,644 | ||
Impairment of property, plant and equipment | (1,040) | ||
Operating income (loss) | 3,356 | (834) | 490 |
Gain (Loss) on monetary position | 288 | ||
Financial income | 175 | 61 | 93 |
Financial expenses | (30) | (27) | (40) |
Other financial results | 689 | (395) | (174) |
Financial results, net | 1,122 | (361) | (121) |
Profit (loss) before income tax | 4,478 | (1,195) | 369 |
Income tax | (1,459) | (698) | (217) |
Profit (loss) of the year from discontinued operations | 3,019 | (1,893) | 152 |
Other comprehensive income (loss) items that will not be reclassified to profit or loss | |||
Remeasurements related to defined benefit plans | 15 | (121) | |
Income tax | (67) | 58 | 35 |
Reclasification from exchange differences on translation | 223 | ||
Other comprehensive income (loss) Items that may be reclassified to profit or loss | |||
Exchange differences on translation | 156 | (606) | 221 |
Other comprehensive income (loss) of the year from discontinued operations | 312 | (533) | 135 |
Total comprehensive income (loss) of the year from discontinued operations | 3,331 | (2,426) | 287 |
Total comprehensive income (loss) of the year from discontinued operations attributable to: | |||
Owners of the company | 2,929 | (2,068) | 173 |
Non - controlling interest | 90 | 175 | (21) |
Discontinued operations | 3,019 | (1,893) | 152 |
Total comprehensive income (loss) of the year attributable to from discontinued operations | |||
Owners of the company | 3,177 | (2,352) | 322 |
Non - controlling interest | 154 | (74) | (35) |
Discontinued operations | $ 3,331 | $ (2,426) | $ 287 |
5. GROUP STRUCTURE (Details 2)
5. GROUP STRUCTURE (Details 2) - ARS ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Group Structure Details 2Abstract | |||
Net cash (used in) generated by operating activities | $ (1,726) | $ 3,291 | $ 2,902 |
Net cash used in investing activities | 0 | (1,897) | (1,238) |
Net cash generated by (used in) financing activities | 1,565 | (1,168) | (1,726) |
(Decrease) increase in cash and cash equivalents from discontinued operations | (161) | 226 | (62) |
Cash and cash equivalents at the begining of the year | 238 | 142 | 275 |
Loss on net monetary position generated by cash and cash equivalents | (77) | (130) | (60) |
(Decrease) increase in cash and cash equivalents | (161) | 226 | (62) |
Cash and cash equivalents at the end of the year | $ 0 | $ 238 | $ 142 |
5. GROUP STRUCTURE (Details 3)
5. GROUP STRUCTURE (Details 3) - ARS ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
NON CURRENT ASSETS | ||||
Property, plant and equipment | $ 125,005 | $ 111,571 | ||
Intangible assets | 6,080 | 6,354 | ||
Financial assets at amortized cost | 44,644 | 32,977 | ||
Trade and other receivables | 9,521 | 7,444 | ||
Total non current assets | 156,474 | 139,467 | ||
CURRENT ASSETS | ||||
Inventories | 5,169 | 4,266 | $ 6,191 | $ 558 |
Financial assets at fair value through profit and loss | 15,273 | 21,576 | ||
Trade and other receivables | 26,489 | 28,267 | ||
Cash and cash equivalents | 9,097 | 1,179 | $ 2,613 | $ 1,282 |
Total current assets | 57,361 | 55,331 | ||
Assets classified as held for sale | 0 | 18,457 | ||
NON CURRENT LIABILITIES | ||||
Defined benefit plans | 1,175 | 1,464 | ||
Deferred tax liabilities | 15,354 | 16,686 | ||
Provisions | 5,499 | 6,549 | ||
Total non current liabilities | 101,546 | 91,250 | ||
CURRENT LIABILITIES | ||||
Trade and other payables | 24,756 | 26,655 | ||
Salaries and social security payable | 2,726 | 3,180 | ||
Defined benefit plans | 162 | 179 | ||
Income tax and minimum notional income tax provision | 1,084 | 1,392 | ||
Taxes payables | 2,052 | 2,901 | ||
Provisions | 871 | 1,179 | ||
Total current liabilities | 44,606 | 44,236 | ||
Liabilities associated to assets classified as held for sale | $ 0 | 3,499 | ||
Oil and gas | ||||
NON CURRENT ASSETS | ||||
Property, plant and equipment | 11,139 | |||
Intangible assets | 459 | |||
Financial assets at amortized cost | 52 | |||
Trade and other receivables | 9 | |||
Total non current assets | 11,659 | |||
CURRENT ASSETS | ||||
Inventories | 226 | |||
Financial assets at fair value through profit and loss | 1,005 | |||
Trade and other receivables | 629 | |||
Cash and cash equivalents | 238 | |||
Total current assets | 2,098 | |||
Assets classified as held for sale | 13,757 | |||
NON CURRENT LIABILITIES | ||||
Defined benefit plans | 143 | |||
Deferred tax liabilities | 837 | |||
Provisions | 1,361 | |||
Total non current liabilities | 2,341 | |||
CURRENT LIABILITIES | ||||
Trade and other payables | 576 | |||
Salaries and social security payable | 69 | |||
Defined benefit plans | 3 | |||
Income tax and minimum notional income tax provision | 38 | |||
Taxes payables | 173 | |||
Provisions | 75 | |||
Total current liabilities | 934 | |||
Liabilities associated to assets classified as held for sale | 3,275 | |||
Refining y distribution | ||||
NON CURRENT ASSETS | ||||
Property, plant and equipment | 1,652 | |||
Intangible assets | 154 | |||
Financial assets at amortized cost | 0 | |||
Trade and other receivables | 0 | |||
Total non current assets | 1,806 | |||
CURRENT ASSETS | ||||
Inventories | 2,894 | |||
Financial assets at fair value through profit and loss | 0 | |||
Trade and other receivables | 0 | |||
Cash and cash equivalents | 0 | |||
Total current assets | 2,894 | |||
Assets classified as held for sale | 4,700 | |||
NON CURRENT LIABILITIES | ||||
Defined benefit plans | 86 | |||
Deferred tax liabilities | 0 | |||
Provisions | 77 | |||
Total non current liabilities | 163 | |||
CURRENT LIABILITIES | ||||
Trade and other payables | 0 | |||
Salaries and social security payable | 0 | |||
Defined benefit plans | 9 | |||
Income tax and minimum notional income tax provision | 0 | |||
Taxes payables | 0 | |||
Provisions | 52 | |||
Total current liabilities | 61 | |||
Liabilities associated to assets classified as held for sale | 224 | |||
Total | ||||
NON CURRENT ASSETS | ||||
Property, plant and equipment | 12,791 | |||
Intangible assets | 613 | |||
Financial assets at amortized cost | 52 | |||
Trade and other receivables | 9 | |||
Total non current assets | 13,465 | |||
CURRENT ASSETS | ||||
Inventories | 3,120 | |||
Financial assets at fair value through profit and loss | 1,005 | |||
Trade and other receivables | 629 | |||
Cash and cash equivalents | 238 | |||
Total current assets | 4,992 | |||
Assets classified as held for sale | 18,457 | |||
NON CURRENT LIABILITIES | ||||
Defined benefit plans | 229 | |||
Deferred tax liabilities | 837 | |||
Provisions | 1,438 | |||
Total non current liabilities | 2,504 | |||
CURRENT LIABILITIES | ||||
Trade and other payables | 576 | |||
Salaries and social security payable | 69 | |||
Defined benefit plans | 12 | |||
Income tax and minimum notional income tax provision | 38 | |||
Taxes payables | 173 | |||
Provisions | 127 | |||
Total current liabilities | 995 | |||
Liabilities associated to assets classified as held for sale | $ 3,499 |
5. GROUP STRUCTURE (Details 4)
5. GROUP STRUCTURE (Details 4) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Subsidiary 1 | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | Corod | |
Country | Venezuela | |
Main activity | Oil | |
Direct and indirect participation | 100.00% | 100.00% |
Subsidiary 2 | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | CPB | |
Country | Argentina | |
Main activity | Generation | |
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 | Generation | |
Direct and indirect participation | 100.00% | 100.00% |
Subsidiary 4 | ||
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 5 | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | Edenor (2) | |
Country | Argentina | |
Main activity | Distribution of energy | |
Direct and indirect participation | 52.18% | 51.54% |
Subsidiary 6 | ||
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 7 | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | HIDISA | |
Country | Argentina | |
Main activity | Generation | |
Direct and indirect participation | 61.00% | 61.00% |
Subsidiary 8 | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | HINISA | |
Country | Argentina | |
Main activity | Generation | |
Direct and indirect participation | 52.04% | 52.04% |
Subsidiary 9 | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | PACOSA | |
Country | Argentina | |
Main activity | Distributor | |
Direct and indirect participation | 100.00% | 100.00% |
Subsidiary 10 | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | PBI | |
Country | Bolivia | |
Main activity | Investment | |
Direct and indirect participation | 100.00% | 100.00% |
Subsidiary 11 | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | PELSA (1) | |
Country | Argentina | |
Main activity | Oil | |
Direct and indirect participation | 58.88% | |
Subsidiary 12 | ||
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 13 | ||
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 14 | ||
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 15 | ||
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 16 | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | PHA | |
Country | Spain | |
Main activity | Investment | |
Direct and indirect participation | 100.00% | 100.00% |
Subsidiary 17 | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | PISA | |
Country | Uruguay | |
Main activity | Investment | |
Direct and indirect participation | 100.00% | 100.00% |
Subsidiary 18 | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | PP | |
Country | Argentina | |
Main activity | Investment | |
Direct and indirect participation | 100.00% | 100.00% |
Subsidiary 19 | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | PPSL | |
Country | Spain | |
Main activity | Investment | |
Direct and indirect participation | 100.00% | 100.00% |
Subsidiary 20 | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | TGU | |
Country | Uruguay | |
Main activity | Gas transportation | |
Direct and indirect participation | 100.00% | 100.00% |
Subsidiary 21 | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | Transelec | |
Country | Argentina | |
Main activity | Investment | |
Direct and indirect participation | 100.00% | 100.00% |
Subsidiary 22 | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | Trenerec Energía Bolivia | |
Country | Bolivia | |
Main activity | Investment | |
Direct and indirect participation | 100.00% | |
Subsidiary 23 | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | Trenerec | |
Country | Ecuador | |
Main activity | Investment | |
Direct and indirect participation | 100.00% |
5. GROUP STRUCTURE (Details 5)
5. GROUP STRUCTURE (Details 5) - ARS ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Non Current | ||||
Total non current assets | $ 156,474 | $ 139,467 | ||
Borrowings | 69,189 | 54,816 | ||
Total non current liabities | 101,546 | 91,250 | ||
Current | ||||
Cash and cash equivalents | 9,097 | 1,179 | $ 2,613 | $ 1,282 |
Total current assets | 57,361 | 55,331 | ||
Borrowings | 12,901 | 8,623 | ||
Total current liabilities | 44,606 | 44,236 | ||
Total equity | 67,683 | 74,270 | $ 60,646 | $ 45,666 |
Non-controlling interest | 16,160 | 17,792 | ||
Edenor | ||||
Non Current | ||||
Total non current assets | 63,284 | 57,134 | ||
Borrowings | 7,192 | 6,189 | ||
Other non current liabilities | 17,853 | 18,381 | ||
Total non current liabities | 25,045 | 24,570 | ||
Current | ||||
Cash and cash equivalents | 28 | 122 | ||
Other current assets | 13,680 | 13,626 | ||
Total current assets | 13,708 | 13,748 | ||
Borrowings | 1,077 | 105 | ||
Other current liabilities | 19,901 | 18,413 | ||
Total current liabilities | 20,978 | 18,518 | ||
Total equity | 30,969 | 27,794 | ||
Non-controlling interest | $ 14,938 | $ 13,470 |
5. GROUP STRUCTURE (Details 6)
5. GROUP STRUCTURE (Details 6) - ARS ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of subsidiaries [line items] | |||
Revenue | $ 110,080 | $ 82,008 | $ 51,262 |
Interest income | 3,751 | 2,333 | 1,744 |
Interest expense | 11,944 | 8,750 | 8,154 |
Profit before income tax | 8,447 | 15,157 | 1,870 |
Income tax | 658 | (985) | (1,603) |
Profit (loss) for the year | 10,808 | 14,249 | 3,625 |
Other comprehensive loss | 193 | (431) | 120 |
Total comprehensive income (loss) of the year | 11,001 | 13,818 | 3,745 |
Income of the year attributable to non-controlling interest | 2,373 | 3,450 | 750 |
Comprehensive income of the year attributable to non-controlling interest | 2,527 | 3,230 | 868 |
Edenor | |||
Disclosure of subsidiaries [line items] | |||
Revenue | 55,954 | 39,603 | 25,827 |
Depreciation | (2,561) | (2,148) | (2,147) |
Interest income | 672 | 454 | 385 |
Interest expense | (4,968) | (2,567) | (2,589) |
Profit before income tax | 6,175 | 5,591 | 388 |
Income tax | (1,877) | (510) | (147) |
Profit (loss) for the year | 4,298 | 5,081 | 241 |
Other comprehensive loss | (47) | (14) | (7) |
Total comprehensive income (loss) of the year | 4,251 | 5,067 | 234 |
Income of the year attributable to non-controlling interest | 2,073 | 2,462 | 117 |
Other comprehensive income of the year attributable to non-controlling interest | (22) | (7) | (3) |
Comprehensive income of the year attributable to non-controlling interest | $ 2,051 | $ 2,455 | $ 114 |
5. GROUP STRUCTURE (Details 7)
5. GROUP STRUCTURE (Details 7) - ARS ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of subsidiaries [line items] | |||
Net cash generated by operating activities | $ 22,935 | $ 16,648 | $ 12,321 |
Net cash used in investing activities | 740 | (31,938) | (21,909) |
Net cash used in (geneted by) financing activities | (17,714) | 13,991 | 10,592 |
Decrease in cash and cash equivalents | 5,961 | (1,299) | 1,004 |
Cash and cash equivalents at the beginning of the year | 1,179 | 2,613 | 1,282 |
Cash and cash equivalents at the end of the year | 9,097 | 1,179 | 2,613 |
Edenor | |||
Disclosure of subsidiaries [line items] | |||
Net cash generated by operating activities | 9,621 | 7,361 | 4,975 |
Net cash used in investing activities | (8,328) | (8,509) | (4,072) |
Net cash used in (geneted by) financing activities | (2,097) | 867 | (947) |
Decrease in cash and cash equivalents | (804) | (281) | (44) |
Cash and cash equivalents at the beginning of the year | 122 | 382 | 238 |
Exchange differences in cash and cash equivalents | 156 | 0 | (9) |
Result from exposure to inlfation | 554 | 21 | 292 |
Cash and cash equivalents at the end of the year | $ 28 | $ 122 | $ 382 |
5. GROUP STRUCTURE (Details 8)
5. GROUP STRUCTURE (Details 8) - ARS ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of joint ventures [line items] | ||||
Share capital | $ 1,874 | $ 2,080 | ||
Profit (loss) for the year | 10,808 | 14,249 | $ 3,625 | |
Total equity | $ 67,683 | $ 74,270 | $ 60,646 | $ 45,666 |
Joint Venture 1 | ||||
Disclosure of joint ventures [line items] | ||||
Joint venture name | CIESA (1) | |||
Main activity | Investment | |||
Share capital | $ 639 | |||
Profit (loss) for the year | 5,871 | |||
Total equity | $ 16,748 | |||
Direct and indirect participation | 50.00% | |||
Joint Venture 2 | ||||
Disclosure of joint ventures [line items] | ||||
Joint venture name | Citelec (2) | |||
Main activity | Investment | |||
Share capital | $ 556 | |||
Profit (loss) for the year | 1,531 | |||
Total equity | $ 7,481 | |||
Direct and indirect participation | 50.00% | |||
Joint Venture 3 | ||||
Disclosure of joint ventures [line items] | ||||
Joint venture name | Greenwind | |||
Main activity | Generation | |||
Share capital | $ 5 | |||
Profit (loss) for the year | (824) | |||
Total equity | $ (408) | |||
Direct and indirect participation | 50.00% | |||
Associate 1 | ||||
Disclosure of joint ventures [line items] | ||||
Share capital | $ 92 | |||
Profit (loss) for the year | (113) | |||
Total equity | $ 968 | |||
Associate name | Refinor | |||
Main activity | Refinery | |||
Direct and indirect participation | 28.50% |
5. GROUP STRUCTURE (Details 9)
5. GROUP STRUCTURE (Details 9) - ARS ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of joint ventures [line items] | ||||
Interests in associates | $ 2,275 | $ 1,474 | ||
Interests in joint ventures | 15,333 | 11,875 | ||
Interests in associates and joint ventures | 15,333 | 11,875 | $ 9,608 | $ 2,136 |
CIESA | ||||
Disclosure of joint ventures [line items] | ||||
Interests in joint ventures | 9,755 | 7,606 | ||
Citelec | ||||
Disclosure of joint ventures [line items] | ||||
Interests in joint ventures | 3,303 | 2,534 | ||
Greenwind | ||||
Disclosure of joint ventures [line items] | ||||
Interests in joint ventures | 0 | 261 | ||
Refinor | ||||
Disclosure of joint ventures [line items] | ||||
Interests in associates | 960 | 1,094 | ||
Oldelval | ||||
Disclosure of joint ventures [line items] | ||||
Interests in associates | 0 | 379 | ||
OCP | ||||
Disclosure of joint ventures [line items] | ||||
Interests in associates | 1,305 | 0 | ||
Other | ||||
Disclosure of joint ventures [line items] | ||||
Interests in associates | $ 10 | $ 1 |
5. GROUP STRUCTURE (Details 10)
5. GROUP STRUCTURE (Details 10) - ARS ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of joint ventures [line items] | |||
Share of profit (loss) of associates | $ 1,284 | $ 75 | $ 3 |
Share of profit (loss) of joint ventures | 3,180 | 1,888 | 283 |
Share of profit (loss) of associates and joint ventures | 4,464 | 1,813 | 286 |
CIESA | |||
Disclosure of joint ventures [line items] | |||
Share of profit (loss) of joint ventures | 2,793 | 949 | 191 |
Citelec | |||
Disclosure of joint ventures [line items] | |||
Share of profit (loss) of joint ventures | 801 | 1,012 | 92 |
Greenwind | |||
Disclosure of joint ventures [line items] | |||
Share of profit (loss) of joint ventures | (414) | (73) | 0 |
Oldelval | |||
Disclosure of joint ventures [line items] | |||
Share of profit (loss) of associates | 116 | 41 | 7 |
Refinor | |||
Disclosure of joint ventures [line items] | |||
Share of profit (loss) of associates | (138) | (113) | (4) |
OCP | |||
Disclosure of joint ventures [line items] | |||
Share of profit (loss) of associates | 1,305 | 0 | 0 |
Other | |||
Disclosure of joint ventures [line items] | |||
Share of profit (loss) of associates | $ 1 | $ (3) | $ 0 |
5. GROUP STRUCTURE (Details 11)
5. GROUP STRUCTURE (Details 11) - ARS ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Investments In Joint Ventures Details 3Abstract | |||
Interests in associates and joint ventures, beginning | $ 11,875 | $ 9,608 | $ 2,136 |
Reclassifications | 0 | 457 | 0 |
Increase for subsidiaries acquisition | 0 | 0 | 7,254 |
Dividends | (706) | 0 | 0 |
Other decreases | (434) | (3) | (68) |
Share of profit (loss) from joint ventures and associates | 4,464 | 1,813 | 286 |
Other comprehensive (loss) income | (19) | 0 | 0 |
Interests in associates and joint ventures, ending | $ 15,333 | $ 11,875 | $ 9,608 |
5. GROUP STRUCTURE (Details 12)
5. GROUP STRUCTURE (Details 12) | 12 Months Ended |
Dec. 31, 2018 | |
Argentinian production 1 | |
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 2 | |
Disclosure of joint operations [line items] | |
Joint operation name | Sierra Chata |
Location | Neuquén |
Direct participation | 45.55% |
Indirect participation | |
Operator name | PAMPA |
Duration Up To | 2053 |
Argentinian production 3 | |
Disclosure of joint operations [line items] | |
Joint operation name | El Mangrullo |
Location | Neuquén |
Direct participation | 100.00% |
Indirect participation | |
Operator name | PAMPA |
Duration Up To | 2053 |
Argentinian production 4 | |
Disclosure of joint operations [line items] | |
Joint operation name | La Tapera - Puesto Quiroga |
Location | Chubut |
Direct participation | 35.67% |
Indirect participation | |
Operator name | Tecpetrol |
Duration Up To | 2027 |
Argentinian production 5 | |
Disclosure of joint operations [line items] | |
Joint operation name | El Tordillo |
Location | Chubut |
Direct participation | 35.67% |
Indirect participation | |
Operator name | Tecpetrol |
Duration Up To | 2027 |
Argentinian production 6 | |
Disclosure of joint operations [line items] | |
Joint operation name | Aguaragüe |
Location | Salta |
Direct participation | 15.00% |
Indirect participation | |
Operator name | Tecpetrol |
Duration Up To | 2023/2027 |
Argentinian production 7 | |
Disclosure of joint operations [line items] | |
Joint operation name | Gobernador Ayala |
Location | Mendoza |
Direct participation | 22.51% |
Indirect participation | |
Operator name | Pluspetrol |
Duration Up To | 2,036 |
Argentinian production 8 | |
Disclosure of joint operations [line items] | |
Joint operation name | Anticlinal |
Location | Neuquén |
Direct participation | 15.00% |
Indirect participation | |
Operator name | YPF |
Duration Up To | 2026 |
Argentinian production 9 | |
Disclosure of joint operations [line items] | |
Joint operation name | Estación Fernández Oro |
Location | Río Negro |
Direct participation | 15.00% |
Indirect participation | |
Operator name | YPF |
Duration Up To | 2026 |
Argentinian production 10 | |
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 | 2052 |
Argentinian production 11 | |
Disclosure of joint operations [line items] | |
Joint operation name | Senillosa |
Location | Neuquén |
Direct participation | 85.00% |
Indirect participation | |
Operator name | PAMPA |
Duration Up To | 2040 |
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 | 2025 |
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 | 2025 |
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 | 2025 |
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 | 2025 |
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 | 2019 |
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 | 2019 |
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 | 2019 |
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 | 2014 |
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 | 2014 |
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 | 2027 |
Argentinian exploration 9 | |
Disclosure of joint operations [line items] | |
Joint operation name | Las Tacanas Norte |
Location | Neuquén |
Direct participation | 90.00% |
Indirect participation | |
Operator name | PAMPA |
Duration Up To | 2023 |
5. GROUP STRUCTURE (Details 13)
5. GROUP STRUCTURE (Details 13) - ARS ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operations In Hydrocarbon Consortiums Details 1Abstract | |||
Exploratory well costs, beginning | $ 452 | $ 486 | $ 208 |
Increase for subsidiaries acquisition | 0 | 0 | 425 |
Increases | 309 | 226 | 188 |
Transferred to development | (5) | (216) | (136) |
Loss of the year | (28) | (44) | (199) |
Exploratory well costs, ending | $ 728 | $ 452 | $ 486 |
Number of wells at the end of the year | 7 | 7 | 7 |
6. RISKS (Details)
6. RISKS (Details) € in Millions, kr in Millions, SFr in Millions, $ in Millions, $ in Millions | Dec. 31, 2018ARS ($)$ / $$ / €$ / SFr$ / kr | Dec. 31, 2018USD ($)$ / $$ / €$ / SFr$ / kr | Dec. 31, 2018EUR (€)$ / $$ / €$ / SFr$ / kr | Dec. 31, 2018CHF (SFr)$ / $$ / €$ / SFr$ / kr | Dec. 31, 2018SEK (kr)$ / $$ / €$ / SFr$ / kr | Dec. 31, 2017ARS ($) |
DisclosureOfExposureToTheExchangeRateRiskForFinancialAssetsAndLiabilitiesLineItems [Line Items] | ||||||
Exposure to the exchange rate risk for financial assets | $ (50,624) | $ (48,279) | ||||
Total non current liabilities | ||||||
DisclosureOfExposureToTheExchangeRateRiskForFinancialAssetsAndLiabilitiesLineItems [Line Items] | ||||||
Exposure to the exchange rate risk for financial assets | 69,242 | 52,365 | ||||
Total current liabilities | ||||||
DisclosureOfExposureToTheExchangeRateRiskForFinancialAssetsAndLiabilitiesLineItems [Line Items] | ||||||
Exposure to the exchange rate risk for financial assets | 17,807 | 14,661 | ||||
Liabilities associated to assets classified as held for sale | ||||||
DisclosureOfExposureToTheExchangeRateRiskForFinancialAssetsAndLiabilitiesLineItems [Line Items] | ||||||
Exposure to the exchange rate risk for financial assets | 0 | 1,897 | ||||
Total liabilities | ||||||
DisclosureOfExposureToTheExchangeRateRiskForFinancialAssetsAndLiabilitiesLineItems [Line Items] | ||||||
Exposure to the exchange rate risk for financial assets | $ 87,049 | 68,923 | ||||
Related parties | Non current borrowings | ||||||
DisclosureOfExposureToTheExchangeRateRiskForFinancialAssetsAndLiabilitiesLineItems [Line Items] | ||||||
Amount of foreign currency | $ 0 | |||||
Exchange rate | $ / $ | 0 | 0 | 0 | 0 | 0 | |
Exposure to the exchange rate risk for financial assets | $ 0 | 21 | ||||
Related parties | Non current provisions | ||||||
DisclosureOfExposureToTheExchangeRateRiskForFinancialAssetsAndLiabilitiesLineItems [Line Items] | ||||||
Exposure to the exchange rate risk for financial assets | 4,317 | |||||
Related parties | Current trade and other payables | ||||||
DisclosureOfExposureToTheExchangeRateRiskForFinancialAssetsAndLiabilitiesLineItems [Line Items] | ||||||
Amount of foreign currency | $ 2.8 | |||||
Exchange rate | $ / $ | 37.6 | 37.6 | 37.6 | 37.6 | 37.6 | |
Exposure to the exchange rate risk for financial assets | $ 105 | 59 | ||||
Related parties | Current provisions | ||||||
DisclosureOfExposureToTheExchangeRateRiskForFinancialAssetsAndLiabilitiesLineItems [Line Items] | ||||||
Amount of foreign currency | $ 0 | |||||
Exchange rate | $ / $ | 37.6 | 37.6 | 37.6 | 37.6 | 37.6 | |
Exposure to the exchange rate risk for financial assets | $ 0 | 585 | ||||
Related parties | Taxes payables | ||||||
DisclosureOfExposureToTheExchangeRateRiskForFinancialAssetsAndLiabilitiesLineItems [Line Items] | ||||||
Exposure to the exchange rate risk for financial assets | 0 | |||||
Third parties | Non current trade and other payables | ||||||
DisclosureOfExposureToTheExchangeRateRiskForFinancialAssetsAndLiabilitiesLineItems [Line Items] | ||||||
Amount of foreign currency | $ 6.7 | |||||
Exchange rate | $ / $ | 37.7 | 37.7 | 37.7 | 37.7 | 37.7 | |
Exposure to the exchange rate risk for financial assets | $ 251 | 185 | ||||
Third parties | Non current borrowings | ||||||
DisclosureOfExposureToTheExchangeRateRiskForFinancialAssetsAndLiabilitiesLineItems [Line Items] | ||||||
Amount of foreign currency | $ 1,717.5 | |||||
Exchange rate | $ / $ | 37.7 | 37.7 | 37.7 | 37.7 | 37.7 | |
Exposure to the exchange rate risk for financial assets | $ 64,750 | 47,842 | ||||
Third parties | Non current provisions | ||||||
DisclosureOfExposureToTheExchangeRateRiskForFinancialAssetsAndLiabilitiesLineItems [Line Items] | ||||||
Amount of foreign currency | $ 104.8 | |||||
Exchange rate | $ / $ | 37.7 | 37.7 | 37.7 | 37.7 | 37.7 | |
Exposure to the exchange rate risk for financial assets | $ 3,951 | |||||
Third parties | Taxes payable | ||||||
DisclosureOfExposureToTheExchangeRateRiskForFinancialAssetsAndLiabilitiesLineItems [Line Items] | ||||||
Amount of foreign currency | $ 7.7 | |||||
Exchange rate | $ / $ | 37.7 | 37.7 | 37.7 | 37.7 | 37.7 | |
Exposure to the exchange rate risk for financial assets | $ 290 | |||||
Third parties | Current trade and other payables | ||||||
DisclosureOfExposureToTheExchangeRateRiskForFinancialAssetsAndLiabilitiesLineItems [Line Items] | ||||||
Amount of foreign currency | $ 132.5 | |||||
Exchange rate | $ / $ | 37.7 | 37.7 | 37.7 | 37.7 | 37.7 | |
Exposure to the exchange rate risk for financial assets | $ 4,995 | 6,867 | ||||
Third parties | Current borrowings | ||||||
DisclosureOfExposureToTheExchangeRateRiskForFinancialAssetsAndLiabilitiesLineItems [Line Items] | ||||||
Amount of foreign currency | $ 306.4 | |||||
Exchange rate | $ / $ | 37.7 | 37.7 | 37.7 | 37.7 | 37.7 | |
Exposure to the exchange rate risk for financial assets | $ 11,551 | 5,875 | ||||
Third parties | Derivative financial instruments | ||||||
DisclosureOfExposureToTheExchangeRateRiskForFinancialAssetsAndLiabilitiesLineItems [Line Items] | ||||||
Amount of foreign currency | $ 1.3 | |||||
Exchange rate | $ / $ | 37.7 | 37.7 | 37.7 | 37.7 | 37.7 | |
Exposure to the exchange rate risk for financial assets | $ 49 | |||||
Third parties | Current salaries and social security payable | ||||||
DisclosureOfExposureToTheExchangeRateRiskForFinancialAssetsAndLiabilitiesLineItems [Line Items] | ||||||
Amount of foreign currency | $ 0.3 | |||||
Exchange rate | $ / $ | 37.7 | 37.7 | 37.7 | 37.7 | 37.7 | |
Exposure to the exchange rate risk for financial assets | $ 11 | 4 | ||||
Third parties | Current taxes payable | ||||||
DisclosureOfExposureToTheExchangeRateRiskForFinancialAssetsAndLiabilitiesLineItems [Line Items] | ||||||
Amount of foreign currency | $ 5.9 | |||||
Exchange rate | $ / $ | 37.7 | 37.7 | 37.7 | 37.7 | 37.7 | |
Exposure to the exchange rate risk for financial assets | $ 222 | 28 | ||||
Third parties | Current provisions | ||||||
DisclosureOfExposureToTheExchangeRateRiskForFinancialAssetsAndLiabilitiesLineItems [Line Items] | ||||||
Amount of foreign currency | $ 18.1 | |||||
Exchange rate | $ / $ | 37.7 | 37.7 | 37.7 | 37.7 | 37.7 | |
Exposure to the exchange rate risk for financial assets | $ 682 | 413 | ||||
Third parties | Current trade and other payables | ||||||
DisclosureOfExposureToTheExchangeRateRiskForFinancialAssetsAndLiabilitiesLineItems [Line Items] | ||||||
Amount of foreign currency | € | € 4.3 | |||||
Exchange rate | $ / € | 43.16 | 43.16 | 43.16 | 43.16 | 43.16 | |
Exposure to the exchange rate risk for financial assets | $ 186 | 741 | ||||
Third parties | Current trade and other payables | ||||||
DisclosureOfExposureToTheExchangeRateRiskForFinancialAssetsAndLiabilitiesLineItems [Line Items] | ||||||
Amount of foreign currency | SFr | SFr 0 | |||||
Exchange rate | $ / SFr | 0 | 0 | 0 | 0 | 0 | |
Exposure to the exchange rate risk for financial assets | $ 0 | 18 | ||||
Third parties | Current trade and other payables | ||||||
DisclosureOfExposureToTheExchangeRateRiskForFinancialAssetsAndLiabilitiesLineItems [Line Items] | ||||||
Amount of foreign currency | kr | kr 1 | |||||
Exchange rate | $ / kr | 4.2 | 4.2 | 4.2 | 4.2 | 4.2 | |
Exposure to the exchange rate risk for financial assets | $ 4 | 71 | ||||
Non current other receivables | Related parties | ||||||
DisclosureOfExposureToTheExchangeRateRiskForFinancialAssetsAndLiabilitiesLineItems [Line Items] | ||||||
Amount of foreign currency | $ 38.2 | |||||
Exchange rate | $ / $ | 37.6 | 37.6 | 37.6 | 37.6 | 37.6 | |
Exposure to the exchange rate risk for financial assets | $ 1,436 | 1,165 | ||||
Non current other receivables | Third parties | ||||||
DisclosureOfExposureToTheExchangeRateRiskForFinancialAssetsAndLiabilitiesLineItems [Line Items] | ||||||
Amount of foreign currency | $ 129.3 | |||||
Exchange rate | $ / $ | 37.5 | 37.5 | 37.5 | 37.5 | 37.5 | |
Exposure to the exchange rate risk for financial assets | $ 4,849 | 1,717 | ||||
Non current financial assets at fair value through profit and loss | Third parties | ||||||
DisclosureOfExposureToTheExchangeRateRiskForFinancialAssetsAndLiabilitiesLineItems [Line Items] | ||||||
Amount of foreign currency | $ 3.6 | |||||
Exchange rate | $ / $ | 37.5 | 37.5 | 37.5 | 37.5 | 37.5 | |
Exposure to the exchange rate risk for financial assets | $ 135 | 0 | ||||
Total non current assets | ||||||
DisclosureOfExposureToTheExchangeRateRiskForFinancialAssetsAndLiabilitiesLineItems [Line Items] | ||||||
Exposure to the exchange rate risk for financial assets | $ 6,420 | 2,882 | ||||
Current financial assets at fair value through profit and loss | Third parties | ||||||
DisclosureOfExposureToTheExchangeRateRiskForFinancialAssetsAndLiabilitiesLineItems [Line Items] | ||||||
Amount of foreign currency | $ 300.6 | |||||
Exchange rate | $ / $ | 37.5 | 37.5 | 37.5 | 37.5 | 37.5 | |
Exposure to the exchange rate risk for financial assets | $ 11,272 | 7,204 | ||||
Derivative financial instruments | Third parties | ||||||
DisclosureOfExposureToTheExchangeRateRiskForFinancialAssetsAndLiabilitiesLineItems [Line Items] | ||||||
Amount of foreign currency | $ 0 | |||||
Exchange rate | $ / $ | 0 | 0 | 0 | 0 | 0 | |
Exposure to the exchange rate risk for financial assets | $ 0 | 6 | ||||
Current trade and other receivables | Related parties | ||||||
DisclosureOfExposureToTheExchangeRateRiskForFinancialAssetsAndLiabilitiesLineItems [Line Items] | ||||||
Amount of foreign currency | $ 9.9 | |||||
Exchange rate | $ / $ | 37.6 | 37.6 | 37.6 | 37.6 | 37.6 | |
Exposure to the exchange rate risk for financial assets | $ 372 | 279 | ||||
Current trade and other receivables | Third parties | ||||||
DisclosureOfExposureToTheExchangeRateRiskForFinancialAssetsAndLiabilitiesLineItems [Line Items] | ||||||
Amount of foreign currency | $ 180.8 | |||||
Exchange rate | $ / $ | 37.5 | 37.5 | 37.5 | 37.5 | 37.5 | |
Exposure to the exchange rate risk for financial assets | $ 6,780 | 8,600 | ||||
Current trade and other receivables | Third parties | ||||||
DisclosureOfExposureToTheExchangeRateRiskForFinancialAssetsAndLiabilitiesLineItems [Line Items] | ||||||
Amount of foreign currency | $ 4,050.9 | |||||
Exchange rate | $ / $ | 1.157 | 1.157 | 1.157 | 1.157 | 1.157 | |
Exposure to the exchange rate risk for financial assets | $ 4,688 | 0 | ||||
Current trade and other receivables | Third parties | ||||||
DisclosureOfExposureToTheExchangeRateRiskForFinancialAssetsAndLiabilitiesLineItems [Line Items] | ||||||
Amount of foreign currency | € | € 0.4 | |||||
Exchange rate | $ / € | 42.84 | 42.84 | 42.84 | 42.84 | 42.84 | |
Exposure to the exchange rate risk for financial assets | $ 17 | 0 | ||||
Cash and cash equivalents | ||||||
DisclosureOfExposureToTheExchangeRateRiskForFinancialAssetsAndLiabilitiesLineItems [Line Items] | ||||||
Amount of foreign currency | $ 163.6 | |||||
Exchange rate | $ / $ | 37.5 | 37.5 | 37.5 | 37.5 | 37.5 | |
Exposure to the exchange rate risk for financial assets | $ 6,135 | 596 | ||||
Cash and cash equivalents | ||||||
DisclosureOfExposureToTheExchangeRateRiskForFinancialAssetsAndLiabilitiesLineItems [Line Items] | ||||||
Amount of foreign currency | € | € 17.3 | |||||
Exchange rate | $ / € | 42.84 | 42.84 | 42.84 | 42.84 | 42.84 | |
Exposure to the exchange rate risk for financial assets | $ 741 | 10 | ||||
Total current assets | ||||||
DisclosureOfExposureToTheExchangeRateRiskForFinancialAssetsAndLiabilitiesLineItems [Line Items] | ||||||
Exposure to the exchange rate risk for financial assets | 30,005 | 16,695 | ||||
Non current assets classified as held for sale | ||||||
DisclosureOfExposureToTheExchangeRateRiskForFinancialAssetsAndLiabilitiesLineItems [Line Items] | ||||||
Exposure to the exchange rate risk for financial assets | 1,067 | |||||
Total assets | ||||||
DisclosureOfExposureToTheExchangeRateRiskForFinancialAssetsAndLiabilitiesLineItems [Line Items] | ||||||
Exposure to the exchange rate risk for financial assets | $ 36,425 | $ 20,644 |
6. RISKS (Details 1)
6. RISKS (Details 1) - ARS ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
DisclosureOfVariationOfTheResultOfTheYearExposureToPriceRiskLineItems [Line Items] | ||
Variation of the result for the year | $ 1,570 | $ 2,186 |
Shares | ||
DisclosureOfVariationOfTheResultOfTheYearExposureToPriceRiskLineItems [Line Items] | ||
Variation of the result for the year | 47 | 29 |
Government securities | ||
DisclosureOfVariationOfTheResultOfTheYearExposureToPriceRiskLineItems [Line Items] | ||
Variation of the result for the year | 1,123 | 741 |
Investment funds | ||
DisclosureOfVariationOfTheResultOfTheYearExposureToPriceRiskLineItems [Line Items] | ||
Variation of the result for the year | $ 400 | $ 1,416 |
6. RISKS (Details 2)
6. RISKS (Details 2) - ARS ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of detailed information about borrowings [line items] | ||||
Total borrowings | $ 82,090 | $ 63,439 | $ 47,855 | $ 19,821 |
Fixed interest rate | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Total borrowings | 70,698 | 53,211 | ||
Fixed interest rate | Argentinian pesos | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Total borrowings | 550 | 3,352 | ||
Fixed interest rate | US Dollar | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Total borrowings | 70,149 | 49,858 | ||
Floating interest rates | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Total borrowings | 9,025 | 8,431 | ||
Floating interest rates | Argentinian pesos | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Total borrowings | 4,074 | 5,320 | ||
Floating interest rates | US Dollar | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Total borrowings | 4,950 | 3,112 | ||
Non interest accrual | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Total borrowings | 2,367 | 1,797 | ||
Non interest accrual | Argentinian pesos | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Total borrowings | 1,202 | 768 | ||
Non interest accrual | US Dollar | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Total borrowings | $ 1,165 | $ 1,029 |
6. RISKS (Details 3)
6. RISKS (Details 3) | 12 Months Ended |
Dec. 31, 2018 | |
Undue | Generation | |
Statement Line Items [Line Items] | |
Credit loss on trade receivables and financial assets | 0.04% |
Undue | Oil and Gas | |
Statement Line Items [Line Items] | |
Credit loss on trade receivables and financial assets | 2.20% |
Undue | Distribution of energy | |
Statement Line Items [Line Items] | |
Credit loss on trade receivables and financial assets | 8.00% |
Undue | Petrochemicals | |
Statement Line Items [Line Items] | |
Credit loss on trade receivables and financial assets | 0.03% |
Undue | Holding | |
Statement Line Items [Line Items] | |
Credit loss on trade receivables and financial assets | 0.96% |
30 days | Generation | |
Statement Line Items [Line Items] | |
Credit loss on trade receivables and financial assets | 0.09% |
30 days | Oil and Gas | |
Statement Line Items [Line Items] | |
Credit loss on trade receivables and financial assets | 4.42% |
30 days | Distribution of energy | |
Statement Line Items [Line Items] | |
Credit loss on trade receivables and financial assets | 8.00% |
30 days | Petrochemicals | |
Statement Line Items [Line Items] | |
Credit loss on trade receivables and financial assets | 0.08% |
30 days | Holding | |
Statement Line Items [Line Items] | |
Credit loss on trade receivables and financial assets | 1.25% |
60 days | Generation | |
Statement Line Items [Line Items] | |
Credit loss on trade receivables and financial assets | 2.62% |
60 days | Oil and Gas | |
Statement Line Items [Line Items] | |
Credit loss on trade receivables and financial assets | 11.11% |
60 days | Distribution of energy | |
Statement Line Items [Line Items] | |
Credit loss on trade receivables and financial assets | 12.00% |
60 days | Petrochemicals | |
Statement Line Items [Line Items] | |
Credit loss on trade receivables and financial assets | 1.41% |
60 days | Holding | |
Statement Line Items [Line Items] | |
Credit loss on trade receivables and financial assets | 2.03% |
90 days | Generation | |
Statement Line Items [Line Items] | |
Credit loss on trade receivables and financial assets | 3.39% |
90 days | Oil and Gas | |
Statement Line Items [Line Items] | |
Credit loss on trade receivables and financial assets | 20.42% |
90 days | Distribution of energy | |
Statement Line Items [Line Items] | |
Credit loss on trade receivables and financial assets | 19.00% |
90 days | Petrochemicals | |
Statement Line Items [Line Items] | |
Credit loss on trade receivables and financial assets | 4.98% |
90 days | Holding | |
Statement Line Items [Line Items] | |
Credit loss on trade receivables and financial assets | 2.85% |
120 days | Generation | |
Statement Line Items [Line Items] | |
Credit loss on trade receivables and financial assets | 9.37% |
120 days | Oil and Gas | |
Statement Line Items [Line Items] | |
Credit loss on trade receivables and financial assets | 42.85% |
120 days | Distribution of energy | |
Statement Line Items [Line Items] | |
Credit loss on trade receivables and financial assets | 26.00% |
120 days | Petrochemicals | |
Statement Line Items [Line Items] | |
Credit loss on trade receivables and financial assets | 11.52% |
120 days | Holding | |
Statement Line Items [Line Items] | |
Credit loss on trade receivables and financial assets | 19.86% |
150 days | Generation | |
Statement Line Items [Line Items] | |
Credit loss on trade receivables and financial assets | 13.56% |
150 days | Oil and Gas | |
Statement Line Items [Line Items] | |
Credit loss on trade receivables and financial assets | 47.32% |
150 days | Distribution of energy | |
Statement Line Items [Line Items] | |
Credit loss on trade receivables and financial assets | 59.00% |
150 days | Petrochemicals | |
Statement Line Items [Line Items] | |
Credit loss on trade receivables and financial assets | 20.36% |
150 days | Holding | |
Statement Line Items [Line Items] | |
Credit loss on trade receivables and financial assets | 26.41% |
180 days | Generation | |
Statement Line Items [Line Items] | |
Credit loss on trade receivables and financial assets | 19.82% |
180 days | Oil and Gas | |
Statement Line Items [Line Items] | |
Credit loss on trade receivables and financial assets | 49.20% |
180 days | Distribution of energy | |
Statement Line Items [Line Items] | |
Credit loss on trade receivables and financial assets | 69.00% |
180 days | Petrochemicals | |
Statement Line Items [Line Items] | |
Credit loss on trade receivables and financial assets | 24.91% |
180 days | Holding | |
Statement Line Items [Line Items] | |
Credit loss on trade receivables and financial assets | 32.95% |
+180 days | Generation | |
Statement Line Items [Line Items] | |
Credit loss on trade receivables and financial assets | 28.88% |
+180 days | Oil and Gas | |
Statement Line Items [Line Items] | |
Credit loss on trade receivables and financial assets | 56.32% |
+180 days | Distribution of energy | |
Statement Line Items [Line Items] | |
Credit loss on trade receivables and financial assets | 69.00% |
+180 days | Petrochemicals | |
Statement Line Items [Line Items] | |
Credit loss on trade receivables and financial assets | 25.24% |
+180 days | Holding | |
Statement Line Items [Line Items] | |
Credit loss on trade receivables and financial assets | 32.97% |
6. RISKS (Details 4)
6. RISKS (Details 4) - ARS ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Financial Ris KManagement Liquidity Risk Abstract | ||
Current assets | $ 57,361 | $ 55,331 |
Current liabilities | $ 44,606 | $ 44,236 |
Liquidity index | 1.29% | 1.25% |
6. RISKS (Details 5)
6. RISKS (Details 5) - ARS ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Trade and other payables | $ 32,918 | $ 36,112 |
Borrowings | 95,832 | 123,985 |
Total | 128,750 | 160,097 |
Less than three months | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Trade and other payables | 12,412 | 17,778 |
Borrowings | 4,217 | 20,576 |
Total | 16,629 | 38,354 |
Three months to one year | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Trade and other payables | 20,072 | 8,865 |
Borrowings | 12,007 | 19,102 |
Total | 32,079 | 27,967 |
One to two years | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Trade and other payables | 334 | 326 |
Borrowings | 9,130 | 6,151 |
Total | 9,464 | 6,477 |
Two to five years | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Trade and other payables | 100 | 180 |
Borrowings | 33,634 | 24,545 |
Total | 33,734 | 24,725 |
More than five years | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Trade and other payables | 0 | 0 |
Borrowings | 36,844 | 44,647 |
Total | $ 36,844 | 44,647 |
Without established term | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Trade and other payables | 8,963 | |
Borrowings | 8,964 | |
Total | $ 17,927 |
6. RISKS (Details 6)
6. RISKS (Details 6) - ARS ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Financial Ris KManagement Capital Risk Leverage Ratio Abstract | ||||
Total borrowings | $ 82,090 | $ 63,439 | $ 47,855 | $ 19,821 |
Less: cash and cash equivalents, and financial assets at fair value through profit and loss | (24,370) | (22,755) | ||
Net debt | 57,720 | 40,684 | ||
Total capital attributable to owners | $ 109,243 | $ 65,649 | ||
Leverage ratio | 52.84% | 61.97% |
7. SEGMENT INFORMATION (Details
7. SEGMENT INFORMATION (Details) - ARS ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of operating segments [line items] | |||
Revenue | $ 110,080 | $ 82,008 | $ 51,262 |
Intersegment sales | 0 | 0 | 0 |
Cost of sales | (74,161) | (59,339) | (42,851) |
Gross profit (loss) | 35,919 | 22,669 | 8,411 |
Selling expenses | (6,451) | (4,776) | (4,491) |
Administrative expenses | (7,751) | (7,481) | (7,511) |
Exploration expenses | (45) | (71) | (199) |
Other operating income | 6,842 | 5,608 | 8,390 |
Other operating expenses | (7,526) | (3,892) | (3,896) |
Impairment of property, plant and equipment and intangible assets | (1,195) | 0 | 0 |
Share of profit (loss) from joint ventures and associates | 4,464 | 1,813 | 286 |
Income from the sale of associates | 1,052 | 0 | 1,015 |
Operating profit (loss) | 25,309 | 13,870 | 2,005 |
Gain (Loss) on monetary position | 23,696 | 11,478 | 5,770 |
Financial income | 3,751 | 2,333 | 1,744 |
Financial expenses | (11,944) | (8,750) | (8,154) |
Other financial results | (32,365) | (3,774) | 505 |
Financial results, net | (16,862) | 1,287 | (135) |
Profit before income tax | 8,447 | 15,157 | 1,870 |
Income tax | (658) | 985 | 1,603 |
Profit (loss) for the year from continuing operations | 7,789 | 16,142 | 3,473 |
Profit (loss) for the year from discontinued operations | 3,019 | (1,893) | 152 |
Profit (loss) for the year | 10,808 | 14,249 | 3,625 |
Depreciation and amortization | 8,816 | 7,739 | 7,102 |
Total profit (loss) of the year attributable to: | |||
Owners of the company | 8,435 | 10,799 | 2,875 |
Non - controlling interest | 2,373 | 3,450 | 750 |
Assets | 213,835 | 213,255 | |
Liabilities | 146,152 | 138,985 | |
Increases in property, plant and equipment | 25,071 | 24,787 | |
Generation | |||
Disclosure of operating segments [line items] | |||
Revenue | 22,763 | 13,250 | 9,744 |
Intersegment sales | 62 | 61 | 32 |
Cost of sales | (10,274) | (7,335) | (5,906) |
Gross profit (loss) | 12,551 | 5,976 | 3,870 |
Selling expenses | (54) | (161) | (148) |
Administrative expenses | (1,535) | (1,189) | (840) |
Exploration expenses | 0 | 0 | 0 |
Other operating income | 405 | 725 | 116 |
Other operating expenses | (640) | (357) | (220) |
Impairment of property, plant and equipment and intangible assets | (7) | ||
Share of profit (loss) from joint ventures and associates | (414) | (73) | 0 |
Income from the sale of associates | 0 | 0 | |
Operating profit (loss) | 10,306 | 4,921 | 2,778 |
Gain (Loss) on monetary position | 8,789 | 654 | 977 |
Financial income | 1,949 | 1,453 | 1,269 |
Financial expenses | (3,218) | (2,618) | (1,586) |
Other financial results | (13,772) | (1,265) | 481 |
Financial results, net | (6,252) | (1,776) | 1,141 |
Profit before income tax | 4,054 | 3,145 | 3,919 |
Income tax | (107) | (137) | (736) |
Profit (loss) for the year from continuing operations | 3,947 | 3,008 | 3,183 |
Profit (loss) for the year from discontinued operations | 0 | 0 | 0 |
Profit (loss) for the year | 3,947 | 3,008 | 3,183 |
Depreciation and amortization | 2,488 | 2,029 | 1,407 |
Total profit (loss) of the year attributable to: | |||
Owners of the company | 3,734 | 2,841 | 3,204 |
Non - controlling interest | 213 | 167 | (21) |
Assets | 53,256 | 42,018 | |
Liabilities | 39,738 | 12,556 | |
Increases in property, plant and equipment | 8,911 | 10,380 | |
Distribution of energy | |||
Disclosure of operating segments [line items] | |||
Revenue | 55,954 | 39,603 | 25,826 |
Intersegment sales | 0 | 0 | 0 |
Cost of sales | (42,839) | (30,117) | (25,253) |
Gross profit (loss) | 13,115 | 9,486 | 573 |
Selling expenses | (5,033) | (3,568) | (3,379) |
Administrative expenses | (2,872) | (2,505) | (2,288) |
Exploration expenses | 0 | 0 | 0 |
Other operating income | 322 | 158 | 3,218 |
Other operating expenses | (1,648) | (1,261) | (913) |
Impairment of property, plant and equipment and intangible assets | 0 | ||
Share of profit (loss) from joint ventures and associates | 2 | 10 | 0 |
Income from the sale of associates | 0 | 0 | |
Operating profit (loss) | 3,886 | 2,320 | (2,789) |
Gain (Loss) on monetary position | 8,504 | 5,457 | 4,307 |
Financial income | 672 | 441 | 385 |
Financial expenses | (4,977) | (2,607) | (2,589) |
Other financial results | (1,879) | 19 | (87) |
Financial results, net | 2,320 | 3,310 | 2,016 |
Profit before income tax | 6,206 | 5,630 | (773) |
Income tax | (1,865) | (449) | 1,015 |
Profit (loss) for the year from continuing operations | 4,341 | 5,181 | 242 |
Profit (loss) for the year from discontinued operations | 0 | 0 | 0 |
Profit (loss) for the year | 4,341 | 5,181 | 242 |
Depreciation and amortization | 2,611 | 2,198 | 2,147 |
Total profit (loss) of the year attributable to: | |||
Owners of the company | 2,273 | 2,719 | 125 |
Non - controlling interest | 2,068 | 2,462 | 117 |
Assets | 80,423 | 74,362 | |
Liabilities | 46,801 | 43,958 | |
Increases in property, plant and equipment | 8,550 | 8,483 | |
Oil and gas | |||
Disclosure of operating segments [line items] | |||
Revenue | 17,261 | 16,695 | 10,281 |
Intersegment sales | 2,377 | 707 | 1,514 |
Cost of sales | (10,822) | (11,695) | (8,585) |
Gross profit (loss) | 8,816 | 5,707 | 3,210 |
Selling expenses | (721) | (600) | (720) |
Administrative expenses | (2,110) | (2,053) | (1,352) |
Exploration expenses | (45) | (71) | (199) |
Other operating income | 5,320 | 4,123 | 4,001 |
Other operating expenses | (4,304) | (1,410) | (1,746) |
Impairment of property, plant and equipment and intangible assets | 0 | ||
Share of profit (loss) from joint ventures and associates | 1,421 | 41 | 7 |
Income from the sale of associates | 1,052 | 0 | |
Operating profit (loss) | 9,429 | 5,737 | 3,201 |
Gain (Loss) on monetary position | 4,037 | (687) | 1,017 |
Financial income | 594 | 209 | 218 |
Financial expenses | (2,978) | (2,932) | (1,543) |
Other financial results | (19,288) | (3,493) | 47 |
Financial results, net | (17,635) | (6,903) | (261) |
Profit before income tax | (8,206) | (1,166) | 2,940 |
Income tax | 2,124 | 893 | (672) |
Profit (loss) for the year from continuing operations | (6,082) | (273) | 2,268 |
Profit (loss) for the year from discontinued operations | 1,868 | (1,328) | (156) |
Profit (loss) for the year | (4,214) | (1,601) | 2,112 |
Depreciation and amortization | 3,472 | 3,273 | 3,419 |
Total profit (loss) of the year attributable to: | |||
Owners of the company | (4,306) | (2,422) | 1,458 |
Non - controlling interest | 92 | 821 | 654 |
Assets | 46,638 | 43,510 | |
Liabilities | 48,003 | 16,748 | |
Increases in property, plant and equipment | 7,221 | 5,295 | |
Refinery and distribution | |||
Disclosure of operating segments [line items] | |||
Revenue | 0 | 0 | 0 |
Intersegment sales | 0 | 0 | 0 |
Cost of sales | 0 | 0 | 0 |
Gross profit (loss) | 0 | 0 | 0 |
Selling expenses | (159) | 0 | 0 |
Administrative expenses | 0 | 0 | 0 |
Exploration expenses | 0 | 0 | 0 |
Other operating income | 281 | 0 | 0 |
Other operating expenses | 0 | 0 | 0 |
Impairment of property, plant and equipment and intangible assets | 0 | ||
Share of profit (loss) from joint ventures and associates | (138) | (113) | (4) |
Income from the sale of associates | 0 | 0 | |
Operating profit (loss) | (16) | (113) | (4) |
Gain (Loss) on monetary position | (15) | (276) | 11 |
Financial income | 0 | 0 | 0 |
Financial expenses | 0 | 0 | 0 |
Other financial results | 32 | 0 | 0 |
Financial results, net | 17 | (276) | 11 |
Profit before income tax | 1 | (389) | 7 |
Income tax | (32) | 0 | 0 |
Profit (loss) for the year from continuing operations | (31) | (389) | 7 |
Profit (loss) for the year from discontinued operations | 1,167 | (599) | 159 |
Profit (loss) for the year | 1,136 | (988) | 166 |
Depreciation and amortization | 20 | 0 | 0 |
Total profit (loss) of the year attributable to: | |||
Owners of the company | 1,136 | (988) | 166 |
Non - controlling interest | 0 | 0 | 0 |
Assets | 2,319 | 8,847 | |
Liabilities | 1,070 | 5,314 | |
Increases in property, plant and equipment | 50 | 255 | |
Petrochemicals | |||
Disclosure of operating segments [line items] | |||
Revenue | 12,748 | 11,825 | 5,301 |
Intersegment sales | 0 | 0 | 0 |
Cost of sales | (12,602) | (10,915) | (4,666) |
Gross profit (loss) | 146 | 910 | 635 |
Selling expenses | (484) | (471) | (233) |
Administrative expenses | (212) | (622) | (33) |
Exploration expenses | 0 | 0 | 0 |
Other operating income | 205 | 103 | 0 |
Other operating expenses | (752) | (363) | (556) |
Impairment of property, plant and equipment and intangible assets | (1,188) | ||
Share of profit (loss) from joint ventures and associates | 0 | 0 | 0 |
Income from the sale of associates | 0 | 0 | |
Operating profit (loss) | (2,285) | (443) | (187) |
Gain (Loss) on monetary position | 1,850 | 58 | (51) |
Financial income | 50 | 16 | 4 |
Financial expenses | (566) | (387) | 0 |
Other financial results | (1,481) | (241) | (6) |
Financial results, net | (147) | (554) | (53) |
Profit before income tax | (2,432) | (997) | (240) |
Income tax | 471 | 728 | 65 |
Profit (loss) for the year from continuing operations | (1,961) | (269) | (175) |
Profit (loss) for the year from discontinued operations | 0 | 0 | 0 |
Profit (loss) for the year | (1,961) | (269) | (175) |
Depreciation and amortization | 222 | 152 | 74 |
Total profit (loss) of the year attributable to: | |||
Owners of the company | (1,961) | (269) | (175) |
Non - controlling interest | 0 | 0 | 0 |
Assets | 5,767 | 5,328 | |
Liabilities | 7,456 | 3,552 | |
Increases in property, plant and equipment | 140 | 182 | |
Holding and others | |||
Disclosure of operating segments [line items] | |||
Revenue | 1,354 | 635 | 110 |
Intersegment sales | 0 | 0 | 59 |
Cost of sales | (4) | (27) | (6) |
Gross profit (loss) | 1,350 | 608 | 163 |
Selling expenses | (1) | 0 | (11) |
Administrative expenses | (1,022) | (1,118) | (3,057) |
Exploration expenses | 0 | 0 | 0 |
Other operating income | 309 | 505 | 1,184 |
Other operating expenses | (210) | (501) | (596) |
Impairment of property, plant and equipment and intangible assets | 0 | ||
Share of profit (loss) from joint ventures and associates | 3,593 | 1,948 | 283 |
Income from the sale of associates | 0 | 1,015 | |
Operating profit (loss) | 4,019 | 1,442 | (1,019) |
Gain (Loss) on monetary position | 464 | 6,272 | (491) |
Financial income | 519 | 286 | 222 |
Financial expenses | (237) | (278) | (2,791) |
Other financial results | 4,023 | 1,206 | 74 |
Financial results, net | 4,769 | 7,486 | (2,986) |
Profit before income tax | 8,788 | 8,928 | (4,005) |
Income tax | (1,249) | (50) | 1,931 |
Profit (loss) for the year from continuing operations | 7,539 | 8,878 | (2,074) |
Profit (loss) for the year from discontinued operations | 0 | 0 | 0 |
Profit (loss) for the year | 7,539 | 8,878 | (2,074) |
Depreciation and amortization | 3 | 87 | 55 |
Total profit (loss) of the year attributable to: | |||
Owners of the company | 7,539 | 8,878 | (2,074) |
Non - controlling interest | 0 | 0 | 0 |
Assets | 30,572 | 46,761 | |
Liabilities | 8,254 | 64,445 | |
Increases in property, plant and equipment | 199 | 192 | |
Eliminations | |||
Disclosure of operating segments [line items] | |||
Revenue | 0 | 0 | 0 |
Intersegment sales | (2,439) | (768) | (1,605) |
Cost of sales | 2,380 | 750 | 1,565 |
Gross profit (loss) | (59) | (18) | (40) |
Selling expenses | 1 | 24 | 0 |
Administrative expenses | 0 | 6 | 59 |
Exploration expenses | 0 | 0 | 0 |
Other operating income | 0 | (6) | (129) |
Other operating expenses | 28 | 0 | 135 |
Impairment of property, plant and equipment and intangible assets | 0 | ||
Share of profit (loss) from joint ventures and associates | 0 | 0 | 0 |
Income from the sale of associates | 0 | 0 | |
Operating profit (loss) | (30) | 6 | 25 |
Gain (Loss) on monetary position | 67 | 0 | 0 |
Financial income | (33) | (72) | (354) |
Financial expenses | 32 | 72 | 355 |
Other financial results | 0 | 0 | (4) |
Financial results, net | 66 | 0 | (3) |
Profit before income tax | 36 | 6 | 22 |
Income tax | 0 | 0 | 0 |
Profit (loss) for the year from continuing operations | 36 | 6 | 22 |
Profit (loss) for the year from discontinued operations | (16) | 34 | 149 |
Profit (loss) for the year | 20 | 40 | 171 |
Depreciation and amortization | 0 | 0 | 0 |
Total profit (loss) of the year attributable to: | |||
Owners of the company | 20 | 40 | 171 |
Non - controlling interest | 0 | 0 | $ 0 |
Assets | (5,140) | (7,571) | |
Liabilities | (5,170) | (7,588) | |
Increases in property, plant and equipment |
8. REVENUE (Details)
8. REVENUE (Details) - ARS ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
DisclosureOfRevenueLineItems [Line Items] | |||
Revenue | $ 110,080 | $ 82,008 | $ 51,262 |
Generation | |||
DisclosureOfRevenueLineItems [Line Items] | |||
Revenue | 22,763 | 13,250 | 9,744 |
Generation | Sales of energy to the SPOT Market | |||
DisclosureOfRevenueLineItems [Line Items] | |||
Revenue | 12,229 | 8,869 | 5,097 |
Generation | Sales of energy by contract | |||
DisclosureOfRevenueLineItems [Line Items] | |||
Revenue | 10,483 | 4,304 | 4,623 |
Generation | Other sales | |||
DisclosureOfRevenueLineItems [Line Items] | |||
Revenue | 51 | 77 | 24 |
Distribution | |||
DisclosureOfRevenueLineItems [Line Items] | |||
Revenue | 55,954 | 39,603 | 25,826 |
Distribution | Energy sales | |||
DisclosureOfRevenueLineItems [Line Items] | |||
Revenue | 55,690 | 39,328 | 25,593 |
Distribution | Right of use of poles | |||
DisclosureOfRevenueLineItems [Line Items] | |||
Revenue | 190 | 213 | 195 |
Distribution | Connection and reconnection charges | |||
DisclosureOfRevenueLineItems [Line Items] | |||
Revenue | 74 | 62 | 38 |
Oil and gas | |||
DisclosureOfRevenueLineItems [Line Items] | |||
Revenue | 17,261 | 16,695 | 10,281 |
Oil and gas | Other sales | |||
DisclosureOfRevenueLineItems [Line Items] | |||
Revenue | 138 | 929 | 247 |
Oil and gas | Oil, Gas and liquid sales | |||
DisclosureOfRevenueLineItems [Line Items] | |||
Revenue | 17,123 | 15,766 | 10,034 |
Holding and others | |||
DisclosureOfRevenueLineItems [Line Items] | |||
Revenue | 1,354 | 635 | 110 |
Holding and others | Other sales | |||
DisclosureOfRevenueLineItems [Line Items] | |||
Revenue | 7 | 8 | 4 |
Holding and others | Administrative services sales | |||
DisclosureOfRevenueLineItems [Line Items] | |||
Revenue | 1,347 | 627 | 106 |
Petrochemicals | |||
DisclosureOfRevenueLineItems [Line Items] | |||
Revenue | 12,748 | 11,825 | 5,301 |
Petrochemicals | Petrochemicals sales | |||
DisclosureOfRevenueLineItems [Line Items] | |||
Revenue | $ 12,748 | $ 11,825 | $ 5,301 |
9. COST OF SALES (Details)
9. COST OF SALES (Details) - ARS ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
DisclosureOfCostOfSalesLineItems [Line Items] | |||
Inventory, beginning | $ 4,266 | $ 6,191 | $ 558 |
Charges for the year | 75,064 | 57,419 | 48,484 |
Less: Inventories at the end of the year | (5,169) | (4,266) | (6,191) |
Total cost of sales | 74,161 | 59,339 | 42,851 |
Incorporation of inventories for acquisition of companies | |||
DisclosureOfCostOfSalesLineItems [Line Items] | |||
Charges for the year | 0 | 0 | 5,850 |
Purchases of inventories, energy and gas | |||
DisclosureOfCostOfSalesLineItems [Line Items] | |||
Charges for the year | 46,175 | 32,903 | 16,765 |
Salaries and social security charges | |||
DisclosureOfCostOfSalesLineItems [Line Items] | |||
Charges for the year | 6,807 | 7,602 | 7,295 |
Benefits to the personnel | |||
DisclosureOfCostOfSalesLineItems [Line Items] | |||
Charges for the year | 218 | 267 | 162 |
Accrual of defined benefit plans | |||
DisclosureOfCostOfSalesLineItems [Line Items] | |||
Charges for the year | 150 | 276 | 284 |
Work contracts, Fees and compensation for services | |||
DisclosureOfCostOfSalesLineItems [Line Items] | |||
Charges for the year | 3,686 | 3,174 | 2,379 |
Property, plant and equipment depreciations | |||
DisclosureOfCostOfSalesLineItems [Line Items] | |||
Charges for the year | 7,766 | 7,342 | 6,757 |
Intangible assets amortization | |||
DisclosureOfCostOfSalesLineItems [Line Items] | |||
Charges for the year | 273 | 53 | 59 |
Transport of energy | |||
DisclosureOfCostOfSalesLineItems [Line Items] | |||
Charges for the year | 155 | 128 | 24 |
Consumption of materials | |||
DisclosureOfCostOfSalesLineItems [Line Items] | |||
Charges for the year | 2,406 | 1,091 | 825 |
Penalties | |||
DisclosureOfCostOfSalesLineItems [Line Items] | |||
Charges for the year | 2,093 | 425 | 5,025 |
Maintenance | |||
DisclosureOfCostOfSalesLineItems [Line Items] | |||
Charges for the year | 908 | 688 | 774 |
Canons and Royalties | |||
DisclosureOfCostOfSalesLineItems [Line Items] | |||
Charges for the year | 2,782 | 2,110 | 1,273 |
Environmental control | |||
DisclosureOfCostOfSalesLineItems [Line Items] | |||
Charges for the year | 193 | 105 | 70 |
Rental and insurance | |||
DisclosureOfCostOfSalesLineItems [Line Items] | |||
Charges for the year | 502 | 430 | 369 |
Surveillance and security | |||
DisclosureOfCostOfSalesLineItems [Line Items] | |||
Charges for the year | 209 | 230 | 201 |
Taxes, rates and contributions | |||
DisclosureOfCostOfSalesLineItems [Line Items] | |||
Charges for the year | 183 | 109 | 96 |
Other | |||
DisclosureOfCostOfSalesLineItems [Line Items] | |||
Charges for the year | $ 558 | $ 486 | $ 276 |
10. OTHER ITEMS OF THE STATEM_3
10. OTHER ITEMS OF THE STATEMENT OF COMPREHENSIVE INCOME (Details) - ARS ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
DisclosureOfSellingExpensesLineItems [Line Items] | |||
Selling expenses | $ 6,451 | $ 4,776 | $ 4,491 |
Salaries and social security charges | |||
DisclosureOfSellingExpensesLineItems [Line Items] | |||
Selling expenses | 972 | 1,007 | 1,019 |
Accrual of defined benefit plans | |||
DisclosureOfSellingExpensesLineItems [Line Items] | |||
Selling expenses | 16 | 22 | 28 |
Work contracts, Fees and compensation for services | |||
DisclosureOfSellingExpensesLineItems [Line Items] | |||
Selling expenses | 1,126 | 963 | 973 |
Compensation agreements | |||
DisclosureOfSellingExpensesLineItems [Line Items] | |||
Selling expenses | 81 | 221 | 332 |
Property, plant and equipment depreciations | |||
DisclosureOfSellingExpensesLineItems [Line Items] | |||
Selling expenses | 322 | 127 | 164 |
Taxes, rates and contributions | |||
DisclosureOfSellingExpensesLineItems [Line Items] | |||
Selling expenses | 1,244 | 1,137 | 726 |
Communications | |||
DisclosureOfSellingExpensesLineItems [Line Items] | |||
Selling expenses | 270 | 289 | 273 |
Penalties | |||
DisclosureOfSellingExpensesLineItems [Line Items] | |||
Selling expenses | 1,052 | 434 | 385 |
Doubtful accounts | |||
DisclosureOfSellingExpensesLineItems [Line Items] | |||
Selling expenses | 1,067 | 418 | 497 |
Transport | |||
DisclosureOfSellingExpensesLineItems [Line Items] | |||
Selling expenses | 211 | 137 | 61 |
Other | |||
DisclosureOfSellingExpensesLineItems [Line Items] | |||
Selling expenses | $ 90 | $ 21 | $ 33 |
10. OTHER ITEMS OF THE STATEM_4
10. OTHER ITEMS OF THE STATEMENT OF COMPREHENSIVE INCOME (Details 1) - ARS ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
DisclosureOfAdministrativeExpensesLineItems [Line Items] | |||
Administrative expenses | $ 7,751 | $ 7,481 | $ 7,511 |
Salaries and social security charges | |||
DisclosureOfAdministrativeExpensesLineItems [Line Items] | |||
Administrative expenses | 3,044 | 2,898 | 2,984 |
Benefits to the personnel | |||
DisclosureOfAdministrativeExpensesLineItems [Line Items] | |||
Administrative expenses | 206 | 205 | 112 |
Accrual of defined benefit plans | |||
DisclosureOfAdministrativeExpensesLineItems [Line Items] | |||
Administrative expenses | 30 | 220 | 181 |
Work contracts, Fees and compensation for services | |||
DisclosureOfAdministrativeExpensesLineItems [Line Items] | |||
Administrative expenses | 2,548 | 2,032 | 2,583 |
Compensation agreements | |||
DisclosureOfAdministrativeExpensesLineItems [Line Items] | |||
Administrative expenses | 115 | 754 | 499 |
Directors and Syndicates fees | |||
DisclosureOfAdministrativeExpensesLineItems [Line Items] | |||
Administrative expenses | 173 | 155 | 138 |
Property, plant and equipment depreciations | |||
DisclosureOfAdministrativeExpensesLineItems [Line Items] | |||
Administrative expenses | 455 | 217 | 181 |
Consumption of materials | |||
DisclosureOfAdministrativeExpensesLineItems [Line Items] | |||
Administrative expenses | 149 | 99 | 81 |
Maintenance | |||
DisclosureOfAdministrativeExpensesLineItems [Line Items] | |||
Administrative expenses | 88 | 77 | 70 |
Transport and per diem | |||
DisclosureOfAdministrativeExpensesLineItems [Line Items] | |||
Administrative expenses | 82 | 63 | 53 |
Rental and insurance | |||
DisclosureOfAdministrativeExpensesLineItems [Line Items] | |||
Administrative expenses | 212 | 220 | 243 |
Surveillance and security | |||
DisclosureOfAdministrativeExpensesLineItems [Line Items] | |||
Administrative expenses | 171 | 151 | 109 |
Taxes, rates and contributions | |||
DisclosureOfAdministrativeExpensesLineItems [Line Items] | |||
Administrative expenses | 317 | 145 | 77 |
Communications | |||
DisclosureOfAdministrativeExpensesLineItems [Line Items] | |||
Administrative expenses | 74 | 74 | 63 |
Advertising and promotion | |||
DisclosureOfAdministrativeExpensesLineItems [Line Items] | |||
Administrative expenses | 49 | 89 | 61 |
Other | |||
DisclosureOfAdministrativeExpensesLineItems [Line Items] | |||
Administrative expenses | $ 38 | $ 82 | $ 76 |
10. OTHER ITEMS OF THE STATEM_5
10. OTHER ITEMS OF THE STATEMENT OF COMPREHENSIVE INCOME (Details 2) - ARS ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
DisclosureOfExplorationExpensesLineItems [Line Items] | |||
Exploration expenses | $ 45 | $ 71 | $ 199 |
Geological and geophysical expenses | |||
DisclosureOfExplorationExpensesLineItems [Line Items] | |||
Exploration expenses | 17 | 27 | 39 |
Decrease in abandoned and unproductive wells | |||
DisclosureOfExplorationExpensesLineItems [Line Items] | |||
Exploration expenses | $ 28 | $ 44 | $ 160 |
10. OTHER ITEMS OF THE STATEM_6
10. OTHER ITEMS OF THE STATEMENT OF COMPREHENSIVE INCOME (Details 3) - ARS ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
DisclosureOfOtherOperatingIncomeAndExpensesLineItems [Line Items] | |||
Other operating income | $ 6,842 | $ 5,608 | $ 8,390 |
Other operating expenses | (7,526) | (3,892) | (3,896) |
Provision for contingencies | |||
DisclosureOfOtherOperatingIncomeAndExpensesLineItems [Line Items] | |||
Other operating expenses | (1,320) | (765) | (962) |
Decrease in property, plant and equipment | |||
DisclosureOfOtherOperatingIncomeAndExpensesLineItems [Line Items] | |||
Other operating expenses | (217) | (38) | (109) |
Allowance for uncollectible tax credits | |||
DisclosureOfOtherOperatingIncomeAndExpensesLineItems [Line Items] | |||
Other operating expenses | (1) | (27) | (61) |
Tax on bank transactions | |||
DisclosureOfOtherOperatingIncomeAndExpensesLineItems [Line Items] | |||
Other operating expenses | (1,136) | (1,035) | (929) |
Other expenses FOCEDE | |||
DisclosureOfOtherOperatingIncomeAndExpensesLineItems [Line Items] | |||
Other operating expenses | 0 | 0 | (31) |
Cost for services provided to third parties | |||
DisclosureOfOtherOperatingIncomeAndExpensesLineItems [Line Items] | |||
Other operating expenses | (57) | (62) | (68) |
Compensation agreements | |||
DisclosureOfOtherOperatingIncomeAndExpensesLineItems [Line Items] | |||
Other operating expenses | 0 | (80) | (230) |
Donations and contributions | |||
DisclosureOfOtherOperatingIncomeAndExpensesLineItems [Line Items] | |||
Other operating expenses | (82) | (62) | (37) |
Institutional relationships | |||
DisclosureOfOtherOperatingIncomeAndExpensesLineItems [Line Items] | |||
Other operating expenses | (114) | (105) | (92) |
Extraordinary Canon | |||
DisclosureOfOtherOperatingIncomeAndExpensesLineItems [Line Items] | |||
Other operating expenses | (117) | (511) | (774) |
Contingent consideration | |||
DisclosureOfOtherOperatingIncomeAndExpensesLineItems [Line Items] | |||
Other operating expenses | 0 | (304) | 0 |
Onerous contract (Ship or pay) | |||
DisclosureOfOtherOperatingIncomeAndExpensesLineItems [Line Items] | |||
Other operating expenses | (265) | (142) | 0 |
Tax contingencies in Ecuador | |||
DisclosureOfOtherOperatingIncomeAndExpensesLineItems [Line Items] | |||
Other operating expenses | (2,605) | 0 | 0 |
Other | |||
DisclosureOfOtherOperatingIncomeAndExpensesLineItems [Line Items] | |||
Other operating expenses | (1,612) | (761) | (603) |
Compensation for transaction agreement in Ecuador | |||
DisclosureOfOtherOperatingIncomeAndExpensesLineItems [Line Items] | |||
Other operating income | 3,721 | 0 | 0 |
Recovery of doubtful accounts | |||
DisclosureOfOtherOperatingIncomeAndExpensesLineItems [Line Items] | |||
Other operating income | 7 | 154 | 162 |
Surplus Gas Injection Compensation | |||
DisclosureOfOtherOperatingIncomeAndExpensesLineItems [Line Items] | |||
Other operating income | 866 | 3,820 | 4,117 |
Commissions on municipal tax collections | |||
DisclosureOfOtherOperatingIncomeAndExpensesLineItems [Line Items] | |||
Other operating income | 77 | 52 | 44 |
Services to third parties | |||
DisclosureOfOtherOperatingIncomeAndExpensesLineItems [Line Items] | |||
Other operating income | 503 | 313 | 230 |
Profit for property, plant and equipment sale | |||
DisclosureOfOtherOperatingIncomeAndExpensesLineItems [Line Items] | |||
Other operating income | 118 | 7 | 192 |
Dividends received | |||
DisclosureOfOtherOperatingIncomeAndExpensesLineItems [Line Items] | |||
Other operating income | 29 | 56 | 13 |
Recognition of income - provisional remedies Note MEyM No 2016-04484723 | |||
DisclosureOfOtherOperatingIncomeAndExpensesLineItems [Line Items] | |||
Other operating income | 0 | 0 | 2,074 |
Income recognition on account of the RTI - SE Res. No. 32/15 | |||
DisclosureOfOtherOperatingIncomeAndExpensesLineItems [Line Items] | |||
Other operating income | 0 | 0 | 958 |
Higher costs recognition - SE Res. No. 250/13 and subsequent Notes | |||
DisclosureOfOtherOperatingIncomeAndExpensesLineItems [Line Items] | |||
Other operating income | 0 | 0 | 185 |
Onerous contract (Ship or pay) | |||
DisclosureOfOtherOperatingIncomeAndExpensesLineItems [Line Items] | |||
Other operating income | 0 | 0 | 317 |
Reversal of contingencies provision | |||
DisclosureOfOtherOperatingIncomeAndExpensesLineItems [Line Items] | |||
Other operating income | 140 | 915 | 11 |
Other | |||
DisclosureOfOtherOperatingIncomeAndExpensesLineItems [Line Items] | |||
Other operating income | $ 1,381 | $ 291 | $ 87 |
10. OTHER ITEMS OF THE STATEM_7
10. OTHER ITEMS OF THE STATEMENT OF COMPREHENSIVE INCOME (Details 4) - ARS ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
DisclosureOfFinancialResultsLineItems [Line Items] | |||
Financial income | $ 3,751 | $ 2,333 | $ 1,744 |
Financial expenses | (11,944) | (8,750) | (8,154) |
Gain on net monetary position | 23,696 | 11,478 | 5,770 |
Other financial results | (32,365) | (3,774) | 505 |
Total financial results, net | (16,862) | 1,287 | (135) |
Commercial interest | |||
DisclosureOfFinancialResultsLineItems [Line Items] | |||
Financial income | 2,230 | 1,605 | 1,381 |
Financial expenses | (2,957) | (1,679) | (2,159) |
Financial interest | |||
DisclosureOfFinancialResultsLineItems [Line Items] | |||
Financial income | 1,270 | 540 | 142 |
Financial expenses | (7,922) | (6,107) | (5,630) |
Other interest | |||
DisclosureOfFinancialResultsLineItems [Line Items] | |||
Financial income | 251 | 188 | 221 |
Financial expenses | (549) | (387) | (6) |
Fiscal interest | |||
DisclosureOfFinancialResultsLineItems [Line Items] | |||
Financial expenses | (318) | (415) | (160) |
Taxes and bank commissions | |||
DisclosureOfFinancialResultsLineItems [Line Items] | |||
Financial expenses | 0 | 0 | (76) |
Other financial expenses | |||
DisclosureOfFinancialResultsLineItems [Line Items] | |||
Financial expenses | (198) | (162) | (123) |
Foreign currency exchange difference, net | |||
DisclosureOfFinancialResultsLineItems [Line Items] | |||
Other financial results | (32,048) | (5,819) | (1,649) |
Result from repurchase of Corporate Bonds | |||
DisclosureOfFinancialResultsLineItems [Line Items] | |||
Other financial results | 59 | 0 | |
Changes in the fair value of financial instruments | |||
DisclosureOfFinancialResultsLineItems [Line Items] | |||
Other financial results | 2,415 | 2,324 | 2,368 |
Discounted value measurement | |||
DisclosureOfFinancialResultsLineItems [Line Items] | |||
Other financial results | (2,713) | (213) | (138) |
Asset retirement obligation | |||
DisclosureOfFinancialResultsLineItems [Line Items] | |||
Other financial results | (79) | (69) | (68) |
Other financial results | |||
DisclosureOfFinancialResultsLineItems [Line Items] | |||
Other financial results | $ 1 | $ 3 | $ (8) |
10. OTHER ITEMS OF THE STATEM_8
10. OTHER ITEMS OF THE STATEMENT OF COMPREHENSIVE INCOME (Details 5) - ARS ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax And Minimum Notional Income Tax Details 2Abstract | |||
Current tax | $ 1,465 | $ 2,061 | $ 2,159 |
Deferred tax | (713) | (2,708) | (3,412) |
Other comprehensive income | 19 | 0 | (32) |
Difference in the estimate of previous fiscal year income tax and the income return | (113) | (456) | (11) |
Minimum notional tax | 0 | 0 | (307) |
Direct changes for income tax | 0 | 118 | 0 |
Income tax expense (benefit) | $ 658 | $ (985) | $ (1,603) |
10. OTHER ITEMS OF THE STATEM_9
10. OTHER ITEMS OF THE STATEMENT OF COMPREHENSIVE INCOME (Details 6) - ARS ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax And Minimum Notional Income Tax Details 3Abstract | |||
Profit (loss) before income tax | $ 8,447 | $ 15,157 | $ 1,870 |
Current tax rate | 30.00% | 35.00% | 35.00% |
Result at the tax rate | $ 2,534 | $ 5,305 | $ 655 |
Share of profit of joint ventures and associates | (125) | (4,403) | (99) |
Non-taxable results | (740) | (2,235) | (1,545) |
Non-deductible costs | 18 | 322 | 0 |
Non-deductible provisions | 0 | 201 | 260 |
Other | 80 | 19 | 309 |
Gain (Loss) on monetary position | (434) | 2,476 | (863) |
Effect of tax rate change in deferred tax | (983) | (746) | 0 |
Minimum notional income tax credit | 0 | 0 | (307) |
Difference in the estimate of previous fiscal year income tax and the income tax statement | 165 | (741) | 27 |
Deferred tax not previously recognized | 0 | (1,183) | (40) |
Deferred tax assets not recognized | 143 | 0 | 0 |
Income tax expense (benefit) | $ 658 | $ (985) | $ (1,603) |
10. OTHER ITEMS OF THE STATE_10
10. OTHER ITEMS OF THE STATEMENT OF COMPREHENSIVE INCOME (Details 7) - ARS ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
DisclosureOfTaxLossCarryforwardsLineItems [Line Items] | ||
Tax loss-carryforwards | $ 1,976 | $ 2,416 |
Unrecognized deferred assets | (1) | 0 |
Recognized tax loss-carryforwards | 1,975 | 2,416 |
2018 | ||
DisclosureOfTaxLossCarryforwardsLineItems [Line Items] | ||
Tax loss-carryforwards | 0 | 1 |
2019 | ||
DisclosureOfTaxLossCarryforwardsLineItems [Line Items] | ||
Tax loss-carryforwards | 0 | 1 |
2020 | ||
DisclosureOfTaxLossCarryforwardsLineItems [Line Items] | ||
Tax loss-carryforwards | 98 | 15 |
2021 | ||
DisclosureOfTaxLossCarryforwardsLineItems [Line Items] | ||
Tax loss-carryforwards | 667 | 1,010 |
2022 | ||
DisclosureOfTaxLossCarryforwardsLineItems [Line Items] | ||
Tax loss-carryforwards | 161 | 1,389 |
2023 | ||
DisclosureOfTaxLossCarryforwardsLineItems [Line Items] | ||
Tax loss-carryforwards | $ 1,050 | $ 0 |
11. NON-FINANCIAL ASSETS AND _3
11. NON-FINANCIAL ASSETS AND LIABILITIES (Details) - ARS ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, beginning | $ 162,758 | $ 164,176 |
Translation effect | 5 | (430) |
Impairment | (2,081) | 0 |
Increases | 25,071 | 24,787 |
Transfers | 0 | (139) |
Decreases | (2,236) | (25,636) |
Property, plant and equipment, ending | 183,517 | $ 162,758 |
Land | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, beginning | 818 | |
Translation effect | 0 | |
Impairment | 0 | |
Increases | 2 | |
Transfers | 0 | |
Decreases | 0 | |
Property, plant and equipment, ending | 820 | |
Buildings | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, beginning | 7,497 | |
Translation effect | 0 | |
Impairment | 0 | |
Increases | 20 | |
Transfers | 332 | |
Decreases | (35) | |
Property, plant and equipment, ending | 7,814 | |
Equipment and machinery | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, beginning | 36,569 | |
Translation effect | 5 | |
Impairment | (244) | |
Increases | 32 | |
Transfers | 3,244 | |
Decreases | 0 | |
Property, plant and equipment, ending | 39,606 | |
High, medium and low voltage lines | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, beginning | 36,429 | |
Translation effect | 0 | |
Impairment | 0 | |
Increases | 381 | |
Transfers | 1,595 | |
Decreases | (344) | |
Property, plant and equipment, ending | 38,061 | |
Substations | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, beginning | 13,471 | |
Translation effect | 0 | |
Impairment | 0 | |
Increases | 113 | |
Transfers | 188 | |
Decreases | (3) | |
Property, plant and equipment, ending | 13,769 | |
Transforming chamber and platforms | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, beginning | 7,532 | |
Translation effect | 0 | |
Impairment | 0 | |
Increases | 32 | |
Transfers | 354 | |
Decreases | (59) | |
Property, plant and equipment, ending | 7,859 | |
Meters | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, beginning | 7,516 | |
Translation effect | 0 | |
Impairment | 0 | |
Increases | 18 | |
Transfers | 356 | |
Decreases | 0 | |
Property, plant and equipment, ending | 7,890 | |
Wells | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, beginning | 18,580 | |
Translation effect | 0 | |
Impairment | 0 | |
Increases | 26 | |
Transfers | 3,892 | |
Decreases | (1,324) | |
Property, plant and equipment, ending | 21,174 | |
Mining property | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, beginning | 8,910 | |
Translation effect | 0 | |
Impairment | 0 | |
Increases | 995 | |
Transfers | 164 | |
Decreases | 0 | |
Property, plant and equipment, ending | 10,069 | |
Vehicles | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, beginning | 641 | |
Translation effect | 0 | |
Impairment | 0 | |
Increases | 192 | |
Transfers | (4) | |
Decreases | (16) | |
Property, plant and equipment, ending | 813 | |
Furniture and fixtures and software equipment | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, beginning | 2,169 | |
Translation effect | 0 | |
Impairment | 0 | |
Increases | 268 | |
Transfers | 98 | |
Decreases | (3) | |
Property, plant and equipment, ending | 2,532 | |
Communication equipments | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, beginning | 535 | |
Translation effect | 0 | |
Impairment | 0 | |
Increases | 3 | |
Transfers | 16 | |
Decreases | 0 | |
Property, plant and equipment, ending | 554 | |
Materials and spare parts | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, beginning | 1,068 | |
Translation effect | 0 | |
Impairment | 0 | |
Increases | 216 | |
Transfers | (49) | |
Decreases | (13) | |
Property, plant and equipment, ending | 1,222 | |
Refining and distribution industrial complex | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, beginning | 332 | |
Translation effect | 0 | |
Impairment | 0 | |
Increases | 0 | |
Transfers | 31 | |
Decreases | 0 | |
Property, plant and equipment, ending | 363 | |
Petrochemical Industrial Complex | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, beginning | 2,287 | |
Translation effect | 0 | |
Impairment | (1,837) | |
Increases | 0 | |
Transfers | 108 | |
Decreases | 0 | |
Property, plant and equipment, ending | 558 | |
Work in progress | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, beginning | 17,155 | |
Translation effect | 0 | |
Impairment | 0 | |
Increases | 22,623 | |
Transfers | (10,255) | |
Decreases | 0 | |
Property, plant and equipment, ending | 29,523 | |
Advances to suppliers | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, beginning | 1,081 | |
Translation effect | 0 | |
Impairment | 0 | |
Increases | 150 | |
Transfers | (70) | |
Decreases | (439) | |
Property, plant and equipment, ending | 722 | |
Other goods | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, beginning | 168 | |
Translation effect | 0 | |
Impairment | 0 | |
Increases | 0 | |
Transfers | 0 | |
Decreases | 0 | |
Property, plant and equipment, ending | $ 168 |
11. NON-FINANCIAL ASSETS AND _4
11. NON-FINANCIAL ASSETS AND LIABILITIES (Details 1) - ARS ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment depreciation, beginning | $ (51,187) | $ (46,227) |
Decreases | 325 | 5,349 |
Impairment | 893 | 0 |
Depreciation for the year | (8,543) | (10,309) |
Property, plant and equipment depreciation, ending | (58,512) | (51,187) |
Net book value | 125,005 | 111,571 |
Land | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment depreciation, beginning | 0 | |
Decreases | 0 | |
Impairment | 0 | |
Depreciation for the year | 0 | |
Property, plant and equipment depreciation, ending | 0 | 0 |
Net book value | 820 | 818 |
Buildings | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment depreciation, beginning | (2,544) | |
Decreases | 35 | |
Impairment | 0 | |
Depreciation for the year | (294) | |
Property, plant and equipment depreciation, ending | (2,803) | (2,544) |
Net book value | 5,011 | 4,953 |
Equipment and machinery | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment depreciation, beginning | (12,126) | |
Decreases | 0 | |
Impairment | 120 | |
Depreciation for the year | (2,454) | |
Property, plant and equipment depreciation, ending | (14,460) | (12,126) |
Net book value | 25,146 | 24,443 |
High, medium and low voltage lines | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment depreciation, beginning | (11,250) | |
Decreases | 247 | |
Impairment | 0 | |
Depreciation for the year | (1,169) | |
Property, plant and equipment depreciation, ending | (12,172) | (11,250) |
Net book value | 25,889 | 25,179 |
Substations | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment depreciation, beginning | (3,571) | |
Decreases | 1 | |
Impairment | 0 | |
Depreciation for the year | (404) | |
Property, plant and equipment depreciation, ending | (3,974) | (3,571) |
Net book value | 9,795 | 9,900 |
Transforming chamber and platforms | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment depreciation, beginning | (1,940) | |
Decreases | 23 | |
Impairment | 0 | |
Depreciation for the year | (243) | |
Property, plant and equipment depreciation, ending | (2,160) | (1,940) |
Net book value | 5,699 | 5,592 |
Meters | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment depreciation, beginning | (2,698) | |
Decreases | 1 | |
Impairment | 0 | |
Depreciation for the year | (304) | |
Property, plant and equipment depreciation, ending | (3,001) | (2,698) |
Net book value | 4,889 | 4,818 |
Wells | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment depreciation, beginning | (10,165) | |
Decreases | 0 | |
Impairment | 0 | |
Depreciation for the year | (1,922) | |
Property, plant and equipment depreciation, ending | (12,087) | (10,165) |
Net book value | 9,087 | 8,415 |
Mining property | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment depreciation, beginning | (3,512) | |
Decreases | 0 | |
Impairment | 0 | |
Depreciation for the year | (993) | |
Property, plant and equipment depreciation, ending | (4,505) | (3,512) |
Net book value | 5,564 | 5,398 |
Vehicles | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment depreciation, beginning | (441) | |
Decreases | 16 | |
Impairment | 0 | |
Depreciation for the year | (167) | |
Property, plant and equipment depreciation, ending | (592) | (441) |
Net book value | 221 | 200 |
Furniture and fixtures and software equipment | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment depreciation, beginning | (1,489) | |
Decreases | 2 | |
Impairment | 0 | |
Depreciation for the year | (341) | |
Property, plant and equipment depreciation, ending | (1,828) | (1,489) |
Net book value | 704 | 680 |
Communication equipments | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment depreciation, beginning | (357) | |
Decreases | 0 | |
Impairment | 0 | |
Depreciation for the year | (21) | |
Property, plant and equipment depreciation, ending | (378) | (357) |
Net book value | 176 | 178 |
Materials and spare parts | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment depreciation, beginning | (57) | |
Decreases | 0 | |
Impairment | 0 | |
Depreciation for the year | (11) | |
Property, plant and equipment depreciation, ending | (68) | (57) |
Net book value | 1,154 | 1,011 |
Refining and distribution industrial complex | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment depreciation, beginning | (74) | |
Decreases | 0 | |
Impairment | 0 | |
Depreciation for the year | (19) | |
Property, plant and equipment depreciation, ending | (93) | (74) |
Net book value | 270 | 258 |
Petrochemical Industrial Complex | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment depreciation, beginning | (834) | |
Decreases | 0 | |
Impairment | 773 | |
Depreciation for the year | (195) | |
Property, plant and equipment depreciation, ending | (256) | (834) |
Net book value | 302 | 1,453 |
Work in progress | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment depreciation, beginning | 0 | |
Decreases | 0 | |
Impairment | 0 | |
Depreciation for the year | 0 | |
Property, plant and equipment depreciation, ending | 0 | 0 |
Net book value | 29,523 | 17,155 |
Advances to suppliers | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment depreciation, beginning | 0 | |
Decreases | 0 | |
Impairment | 0 | |
Depreciation for the year | 0 | |
Property, plant and equipment depreciation, ending | 0 | 0 |
Net book value | 722 | 1,081 |
Other goods | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment depreciation, beginning | (129) | |
Decreases | 0 | |
Impairment | 0 | |
Depreciation for the year | (6) | |
Property, plant and equipment depreciation, ending | (135) | (129) |
Net book value | $ 33 | $ 39 |
11. NON-FINANCIAL ASSETS AND _5
11. NON-FINANCIAL ASSETS AND LIABILITIES (Details 2) - ARS ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets, beginning | $ 11,840 | $ 11,937 |
Increase for subsidiries acquisition | 6 | 0 |
Impairment | (7) | 0 |
Decrease | 0 | (97) |
Intangible assets, ending | 11,839 | 11,840 |
Concession agreements | ||
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets, beginning | 10,267 | |
Increase for subsidiries acquisition | 0 | |
Impairment | 0 | |
Decrease | 0 | |
Intangible assets, ending | 10,267 | 10,267 |
Goodwill | ||
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets, beginning | 1,309 | |
Increase for subsidiries acquisition | 0 | |
Impairment | 0 | |
Decrease | 0 | |
Intangible assets, ending | 1,309 | 1,309 |
Intangibles identified in acquisitions of companies | ||
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets, beginning | 264 | |
Increase for subsidiries acquisition | 6 | |
Impairment | (7) | |
Decrease | 0 | |
Intangible assets, ending | $ 263 | $ 264 |
11. NON-FINANCIAL ASSETS AND _6
11. NON-FINANCIAL ASSETS AND LIABILITIES (Details 3) - ARS ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets amortization, beginning | $ (5,486) | $ (5,372) |
Amortization for the year | (273) | (114) |
Intangible assets amortization, ending | (5,759) | (5,486) |
Concession agreements | ||
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets amortization, beginning | (5,416) | |
Amortization for the year | (259) | |
Intangible assets amortization, ending | (5,675) | (5,416) |
Goodwill | ||
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets amortization, beginning | 0 | |
Amortization for the year | 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 | (70) | |
Amortization for the year | (14) | |
Intangible assets amortization, ending | $ (84) | $ (70) |
11. NON-FINANCIAL ASSETS AND _7
11. NON-FINANCIAL ASSETS AND LIABILITIES (Details 4) - ARS ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets | $ 6,080 | $ 6,354 |
Concession agreements | ||
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets | 4,592 | 4,851 |
Goodwill | ||
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets | 1,309 | 1,309 |
Intangibles identified in acquisitions of companies | ||
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets | $ 179 | $ 194 |
11. NON-FINANCIAL ASSETS AND _8
11. NON-FINANCIAL ASSETS AND LIABILITIES (Details 5) - ARS ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, plant and equipment | |||
DisclosureOfDeferredTaxAssetsAndLiabilitiesLineItems [Line Items] | |||
Deferred tax liability, beginning | $ (16,687) | $ (23,565) | $ (13,823) |
Profit (loss) | 4,089 | 5,483 | (1,217) |
Increase for subsidiaries acquisition | (8,525) | ||
Reclassification to held for sale | 1,395 | ||
Other comprehensive income (loss) | 0 | 0 | 0 |
Deferred tax liability, ending | (12,598) | (16,687) | (23,565) |
Investments in joint ventures and associates | |||
DisclosureOfDeferredTaxAssetsAndLiabilitiesLineItems [Line Items] | |||
Deferred tax liability, beginning | (1,962) | (2,449) | |
Profit (loss) | 1,328 | 554 | (10) |
Increase for subsidiaries acquisition | (2,439) | ||
Reclassification to held for sale | 0 | ||
Other comprehensive income (loss) | (67) | (67) | 0 |
Deferred tax liability, ending | (701) | (1,962) | (2,449) |
Intangible assets | |||
DisclosureOfDeferredTaxAssetsAndLiabilitiesLineItems [Line Items] | |||
Deferred tax liability, beginning | (108) | (542) | (568) |
Profit (loss) | (7,178) | 434 | 167 |
Increase for subsidiaries acquisition | (141) | ||
Reclassification to held for sale | 0 | ||
Other comprehensive income (loss) | 0 | 0 | 0 |
Deferred tax liability, ending | (7,286) | (108) | (542) |
Trade and other receivables | |||
DisclosureOfDeferredTaxAssetsAndLiabilitiesLineItems [Line Items] | |||
Deferred tax liability, beginning | (997) | (1,568) | (660) |
Profit (loss) | 723 | 571 | (396) |
Increase for subsidiaries acquisition | (512) | ||
Reclassification to held for sale | 0 | ||
Other comprehensive income (loss) | 0 | 0 | 0 |
Deferred tax liability, ending | (274) | (997) | (1,568) |
Financial assets at fair value through profit and loss | |||
DisclosureOfDeferredTaxAssetsAndLiabilitiesLineItems [Line Items] | |||
Deferred tax liability, beginning | (89) | (176) | (122) |
Profit (loss) | (233) | 87 | 47 |
Increase for subsidiaries acquisition | (101) | ||
Reclassification to held for sale | 0 | ||
Other comprehensive income (loss) | 0 | 0 | 0 |
Deferred tax liability, ending | (322) | (89) | (176) |
Borrowings | |||
DisclosureOfDeferredTaxAssetsAndLiabilitiesLineItems [Line Items] | |||
Deferred tax liability, beginning | (201) | (112) | (62) |
Profit (loss) | 79 | (89) | 32 |
Increase for subsidiaries acquisition | (82) | ||
Reclassification to held for sale | 0 | ||
Other comprehensive income (loss) | 0 | 0 | 0 |
Deferred tax liability, ending | (122) | (201) | (112) |
Assets classified as held for sale | |||
DisclosureOfDeferredTaxAssetsAndLiabilitiesLineItems [Line Items] | |||
Deferred tax liability, beginning | (1,241) | 0 | |
Profit (loss) | 1,241 | 154 | 0 |
Increase for subsidiaries acquisition | 0 | ||
Reclassification to held for sale | (1,395) | ||
Other comprehensive income (loss) | 0 | 0 | 0 |
Deferred tax liability, ending | 0 | (1,241) | 0 |
Other | |||
DisclosureOfDeferredTaxAssetsAndLiabilitiesLineItems [Line Items] | |||
Deferred tax liability, beginning | (165) | (6) | (5) |
Profit (loss) | (74) | (159) | 39 |
Increase for subsidiaries acquisition | (40) | ||
Reclassification to held for sale | 0 | ||
Other comprehensive income (loss) | 0 | 0 | 0 |
Deferred tax liability, ending | (239) | (165) | (6) |
Deferred tax liabilities | |||
DisclosureOfDeferredTaxAssetsAndLiabilitiesLineItems [Line Items] | |||
Deferred tax liability, beginning | (21,450) | (28,418) | (15,240) |
Profit (loss) | (25) | 7,035 | (1,338) |
Increase for subsidiaries acquisition | (11,840) | ||
Reclassification to held for sale | 0 | ||
Other comprehensive income (loss) | (67) | (67) | 0 |
Deferred tax liability, ending | (21,542) | (21,450) | (28,418) |
Tax loss-carryforwards | |||
DisclosureOfDeferredTaxAssetsAndLiabilitiesLineItems [Line Items] | |||
Deferred tax asset, beginning | 2,416 | 1,736 | 79 |
Profit (loss) | (441) | 680 | 1,657 |
Increase for subsidiaries acquisition | 0 | ||
Reclassification to held for sale | 0 | ||
Other comprehensive income (loss) | 0 | 0 | 0 |
Deferred tax asset, ending | 1,975 | 2,416 | 1,736 |
Trade and other receivables | |||
DisclosureOfDeferredTaxAssetsAndLiabilitiesLineItems [Line Items] | |||
Deferred tax asset, beginning | 175 | 357 | 131 |
Profit (loss) | 289 | 0 | 57 |
Increase for subsidiaries acquisition | 169 | ||
Reclassification to held for sale | 0 | ||
Other comprehensive income (loss) | 0 | 0 | 0 |
Deferred tax asset, ending | 464 | 175 | 357 |
Derivative financial instruments | |||
DisclosureOfDeferredTaxAssetsAndLiabilitiesLineItems [Line Items] | |||
Deferred tax asset, beginning | 0 | 0 | 0 |
Profit (loss) | 0 | (173) | 0 |
Increase for subsidiaries acquisition | 0 | ||
Reclassification to held for sale | (9) | ||
Other comprehensive income (loss) | 0 | 0 | |
Deferred tax asset, ending | 0 | 0 | 0 |
Financial assets at fair value through profit and loss | |||
DisclosureOfDeferredTaxAssetsAndLiabilitiesLineItems [Line Items] | |||
Deferred tax asset, beginning | 18 | 0 | 20 |
Profit (loss) | (16) | 18 | (20) |
Increase for subsidiaries acquisition | 0 | ||
Reclassification to held for sale | 0 | ||
Other comprehensive income (loss) | 0 | 0 | 0 |
Deferred tax asset, ending | 2 | 18 | 0 |
Trade and other payables | |||
DisclosureOfDeferredTaxAssetsAndLiabilitiesLineItems [Line Items] | |||
Deferred tax asset, beginning | 1,745 | 2,071 | 826 |
Profit (loss) | 210 | (326) | 1,245 |
Increase for subsidiaries acquisition | 0 | ||
Reclassification to held for sale | 0 | ||
Other comprehensive income (loss) | 0 | 0 | 0 |
Deferred tax asset, ending | 1,955 | 1,745 | 2,071 |
Salaries and social security payable | |||
DisclosureOfDeferredTaxAssetsAndLiabilitiesLineItems [Line Items] | |||
Deferred tax asset, beginning | 0 | 0 | 0 |
Profit (loss) | 56 | 0 | 0 |
Increase for subsidiaries acquisition | 0 | ||
Reclassification to held for sale | 0 | ||
Other comprehensive income (loss) | 0 | 0 | |
Deferred tax asset, ending | 56 | 0 | 0 |
Defined benefit plans | |||
DisclosureOfDeferredTaxAssetsAndLiabilitiesLineItems [Line Items] | |||
Deferred tax asset, beginning | 384 | 666 | 270 |
Profit (loss) | (98) | (184) | 25 |
Increase for subsidiaries acquisition | 324 | ||
Reclassification to held for sale | (93) | ||
Other comprehensive income (loss) | 41 | (5) | 47 |
Deferred tax asset, ending | 327 | 384 | 666 |
Provisions | |||
DisclosureOfDeferredTaxAssetsAndLiabilitiesLineItems [Line Items] | |||
Deferred tax asset, beginning | 1,096 | 3,173 | 332 |
Profit (loss) | 105 | (1,569) | 229 |
Increase for subsidiaries acquisition | 2,612 | ||
Reclassification to held for sale | (508) | ||
Other comprehensive income (loss) | 0 | 0 | 0 |
Deferred tax asset, ending | 1,201 | 1,096 | 3,173 |
Taxes payable | |||
DisclosureOfDeferredTaxAssetsAndLiabilitiesLineItems [Line Items] | |||
Deferred tax asset, beginning | 249 | 413 | 122 |
Profit (loss) | (36) | (164) | (431) |
Increase for subsidiaries acquisition | 722 | ||
Reclassification to held for sale | 0 | ||
Other comprehensive income (loss) | 0 | 0 | 0 |
Deferred tax asset, ending | 213 | 249 | 413 |
Liabilities associated to assets classified as held for sale | |||
DisclosureOfDeferredTaxAssetsAndLiabilitiesLineItems [Line Items] | |||
Deferred tax asset, beginning | 542 | 0 | 0 |
Profit (loss) | (542) | (68) | 0 |
Increase for subsidiaries acquisition | 0 | ||
Reclassification to held for sale | 610 | ||
Other comprehensive income (loss) | 0 | 0 | |
Deferred tax asset, ending | 0 | 542 | 0 |
Other | |||
DisclosureOfDeferredTaxAssetsAndLiabilitiesLineItems [Line Items] | |||
Deferred tax asset, beginning | 67 | 232 | 57 |
Profit (loss) | 8 | (165) | (38) |
Increase for subsidiaries acquisition | 213 | ||
Reclassification to held for sale | 0 | ||
Other comprehensive income (loss) | 0 | 0 | 0 |
Deferred tax asset, ending | 75 | 67 | 232 |
Deferred tax asset | |||
DisclosureOfDeferredTaxAssetsAndLiabilitiesLineItems [Line Items] | |||
Deferred tax asset, beginning | 6,692 | 8,648 | 1,837 |
Profit (loss) | (465) | (1,951) | 2,724 |
Increase for subsidiaries acquisition | 4,040 | ||
Reclassification to held for sale | 0 | ||
Other comprehensive income (loss) | 41 | (5) | 47 |
Deferred tax asset, ending | $ 6,268 | $ 6,692 | $ 8,648 |
11. NON-FINANCIAL ASSETS AND _9
11. NON-FINANCIAL ASSETS AND LIABILITIES (Details 6) - ARS ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred Tax Assets And Liabilities Details 1Abstract | ||
Deferred tax asset | $ 80 | $ 1,928 |
Deferred tax liabilities | (15,354) | (16,686) |
Deferred tax liabilities, net | $ (15,274) | $ (14,758) |
11. NON-FINANCIAL ASSETS AND_10
11. NON-FINANCIAL ASSETS AND LIABILITIES (Details 7) - ARS ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
DisclosureOfInventoryLineItems [Line Items] | ||||
Inventories | $ 5,169 | $ 4,266 | $ 6,191 | $ 558 |
Materials and spare parts | ||||
DisclosureOfInventoryLineItems [Line Items] | ||||
Inventories | 3,536 | 3,067 | ||
Advances to suppliers | ||||
DisclosureOfInventoryLineItems [Line Items] | ||||
Inventories | 71 | 211 | ||
In process and finished products | ||||
DisclosureOfInventoryLineItems [Line Items] | ||||
Inventories | 1,516 | 945 | ||
Stock of crude oil | ||||
DisclosureOfInventoryLineItems [Line Items] | ||||
Inventories | $ 46 | $ 43 |
11. NON-FINANCIAL ASSETS AND_11
11. NON-FINANCIAL ASSETS AND LIABILITIES (Details 8) - ARS ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
DisclosureOfProvisionsLineItems [Line Items] | ||
Provisions, non current | $ 5,499 | $ 6,549 |
Provisions, current | 871 | 1,179 |
Provisions for contingencies | ||
DisclosureOfProvisionsLineItems [Line Items] | ||
Provisions, non current | 4,674 | 5,121 |
Provisions, current | 658 | 190 |
Asset retirement obligation | ||
DisclosureOfProvisionsLineItems [Line Items] | ||
Provisions, non current | 770 | 1,355 |
Provisions, current | 65 | 224 |
Environmental remediation | ||
DisclosureOfProvisionsLineItems [Line Items] | ||
Provisions, non current | 13 | 22 |
Provisions, current | 147 | 188 |
Onerous contract (Ship or pay) | ||
DisclosureOfProvisionsLineItems [Line Items] | ||
Provisions, current | 0 | 576 |
Other provisions | ||
DisclosureOfProvisionsLineItems [Line Items] | ||
Provisions, non current | 42 | 51 |
Provisions, current | $ 1 | $ 1 |
11. NON-FINANCIAL ASSETS AND_12
11. NON-FINANCIAL ASSETS AND LIABILITIES (Details 9) - ARS ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Provisions for contingencies | |||
DisclosureOfProvisionsLineItems [Line Items] | |||
Provisions, beginning | $ 5,311 | $ 7,500 | $ 831 |
Increases | 4,013 | 1,627 | 998 |
Reclassification | 0 | (347) | |
Increases for purchases of subsidiaries | 7,047 | ||
Decreases | (904) | (1,461) | (146) |
Gain on net monetary position | (1,965) | (1,404) | (1,230) |
Reclassification to liabilities associated with assets classified as held for sale | 0 | ||
Reversal of unused amounts | (1,123) | (604) | |
Provisions, ending | 5,332 | 5,311 | 7,500 |
Asset retirement obligation | |||
DisclosureOfProvisionsLineItems [Line Items] | |||
Provisions, beginning | 1,579 | 3,430 | 122 |
Increases | 1,391 | 1,053 | 1,330 |
Reclassification | (677) | (27) | |
Increases for purchases of subsidiaries | 2,558 | ||
Decreases | (190) | (276) | (55) |
Gain on net monetary position | (677) | (695) | (525) |
Reclassification to liabilities associated with assets classified as held for sale | (1,292) | ||
Reversal of unused amounts | (591) | (614) | |
Provisions, ending | 835 | 1,579 | 3,430 |
Environmental remediation | |||
DisclosureOfProvisionsLineItems [Line Items] | |||
Provisions, beginning | 210 | 642 | 0 |
Increases | 208 | 162 | 444 |
Reclassification | 0 | 27 | |
Increases for purchases of subsidiaries | 497 | ||
Decreases | (184) | (223) | (203) |
Gain on net monetary position | (74) | (123) | (96) |
Reclassification to liabilities associated with assets classified as held for sale | (272) | ||
Reversal of unused amounts | 0 | (3) | |
Provisions, ending | $ 160 | $ 210 | $ 642 |
11. NON-FINANCIAL ASSETS AND_13
11. NON-FINANCIAL ASSETS AND LIABILITIES (Details 10) - ARS ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
DisclosureOfIncomeTaxAndMinimumNotionalIncomeTaxLiabilityLineItems [Line Items] | ||
Non current income tax and minimum notional income tax provision | $ 1,034 | $ 1,274 |
Current income tax and minimum notional income tax provision | 1,084 | 1,392 |
Income tax, net of witholdings and advances | ||
DisclosureOfIncomeTaxAndMinimumNotionalIncomeTaxLiabilityLineItems [Line Items] | ||
Non current income tax and minimum notional income tax provision | 1,034 | 1,252 |
Current income tax and minimum notional income tax provision | 930 | 1,299 |
Minimum notional income tax, net of witholdings and advances | ||
DisclosureOfIncomeTaxAndMinimumNotionalIncomeTaxLiabilityLineItems [Line Items] | ||
Non current income tax and minimum notional income tax provision | 0 | 22 |
Current income tax and minimum notional income tax provision | $ 154 | $ 93 |
11. NON-FINANCIAL ASSETS AND_14
11. NON-FINANCIAL ASSETS AND LIABILITIES (Details 11) - ARS ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
DisclosureOfTaxLiabilitiesLineItems [Line Items] | ||
Taxes payables, non current | $ 542 | $ 540 |
Taxes payables, current | 2,052 | 2,901 |
Value added tax | ||
DisclosureOfTaxLiabilitiesLineItems [Line Items] | ||
Taxes payables, non current | 160 | 323 |
Taxes payables, current | 786 | 777 |
Sales tax | ||
DisclosureOfTaxLiabilitiesLineItems [Line Items] | ||
Taxes payables, non current | 33 | 25 |
Payment plans | ||
DisclosureOfTaxLiabilitiesLineItems [Line Items] | ||
Taxes payables, non current | 60 | 192 |
Taxes payables, current | 53 | 90 |
Municipal, provincial and national contributions | ||
DisclosureOfTaxLiabilitiesLineItems [Line Items] | ||
Taxes payables, current | 130 | 588 |
Municipal taxes | ||
DisclosureOfTaxLiabilitiesLineItems [Line Items] | ||
Taxes payables, current | 108 | 102 |
Tax withholdings to be deposited | ||
DisclosureOfTaxLiabilitiesLineItems [Line Items] | ||
Taxes payables, current | 337 | 288 |
Stamp tax payable | ||
DisclosureOfTaxLiabilitiesLineItems [Line Items] | ||
Taxes payables, current | 10 | 15 |
Royalties | ||
DisclosureOfTaxLiabilitiesLineItems [Line Items] | ||
Taxes payables, current | 202 | 204 |
Extraordinary Canon | ||
DisclosureOfTaxLiabilitiesLineItems [Line Items] | ||
Taxes payables, non current | 289 | 0 |
Taxes payables, current | 374 | 816 |
Other | ||
DisclosureOfTaxLiabilitiesLineItems [Line Items] | ||
Taxes payables, current | $ 52 | $ 21 |
11. NON-FINANCIAL ASSETS AND_15
11. NON-FINANCIAL ASSETS AND LIABILITIES (Details 12) - ARS ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of net defined benefit liability (asset) [line items] | |||
Liabilities, beginning | $ 1,643 | $ 1,903 | $ 769 |
Items classified in profit or loss | |||
Current services cost | 75 | 95 | 83 |
Cost for interest | 308 | 419 | 386 |
Cost for past service | 46 | ||
Contributions paid | (187) | ||
Items classified in other comprehensive income | |||
Actuarial losses (gains) | 160 | (16) | 155 |
Exchange differences on translation | 4 | 26 | |
Benefit payments | (130) | (76) | (147) |
Contributions paid | (11) | (4) | |
Reclassification to liabilities associated to assets classified as held for sale | (255) | ||
(Gain) loss on net monetary position | (536) | (488) | (261) |
Increase for subsidiaries acquisition | 0 | 0 | 922 |
Liabilities, ending | 1,337 | 1,643 | 1,903 |
Present value of the obligation | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Liabilities, beginning | 1,760 | 2,189 | 769 |
Items classified in profit or loss | |||
Current services cost | 75 | 95 | 83 |
Cost for interest | 339 | 457 | 412 |
Cost for past service | 46 | ||
Contributions paid | (187) | ||
Items classified in other comprehensive income | |||
Actuarial losses (gains) | 225 | (32) | 145 |
Exchange differences on translation | 4 | 52 | |
Benefit payments | (130) | (87) | (151) |
Contributions paid | 0 | 0 | |
Reclassification to liabilities associated to assets classified as held for sale | (420) | ||
(Gain) loss on net monetary position | (586) | (540) | (271) |
Increase for subsidiaries acquisition | 1,202 | ||
Liabilities, ending | 1,500 | 1,760 | 2,189 |
Present value of assets | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Liabilities, beginning | (117) | (286) | 0 |
Items classified in profit or loss | |||
Current services cost | 0 | 0 | |
Cost for interest | (31) | (38) | (26) |
Cost for past service | 0 | ||
Contributions paid | 0 | ||
Items classified in other comprehensive income | |||
Actuarial losses (gains) | (65) | 16 | 10 |
Exchange differences on translation | 0 | (26) | |
Benefit payments | 0 | 11 | 4 |
Contributions paid | (11) | (4) | |
Reclassification to liabilities associated to assets classified as held for sale | 165 | ||
(Gain) loss on net monetary position | 50 | 52 | 10 |
Increase for subsidiaries acquisition | 280 | ||
Liabilities, ending | $ (163) | $ (117) | $ (286) |
11. NON-FINANCIAL ASSETS AND_16
11. NON-FINANCIAL ASSETS AND LIABILITIES (Details 13) $ in Millions | 12 Months Ended |
Dec. 31, 2018ARS ($) | |
Less than one year | |
Disclosure of defined benefit plans [line items] | |
Estimated expected benefits payment | $ 162 |
One to two years | |
Disclosure of defined benefit plans [line items] | |
Estimated expected benefits payment | 94 |
Two to three years | |
Disclosure of defined benefit plans [line items] | |
Estimated expected benefits payment | 111 |
Three to four years | |
Disclosure of defined benefit plans [line items] | |
Estimated expected benefits payment | 100 |
Four to five years | |
Disclosure of defined benefit plans [line items] | |
Estimated expected benefits payment | 92 |
Six to ten years | |
Disclosure of defined benefit plans [line items] | |
Estimated expected benefits payment | $ 449 |
11. NON-FINANCIAL ASSETS AND_17
11. NON-FINANCIAL ASSETS AND LIABILITIES (Details 14) | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefits Plans Details 2Abstract | ||
Discount rate | 5.00% | 5.00% |
Salaries increase | 1.00% | 1.00% |
Average inflation | 27.00% | 21.00% |
11. NON-FINANCIAL ASSETS AND_18
11. NON-FINANCIAL ASSETS AND LIABILITIES (Details 15) $ in Millions | 12 Months Ended |
Dec. 31, 2018ARS ($) | |
Discount rate: 4% | |
Disclosure of defined benefit plans [line items] | |
Obligation | $ 1,637 |
Variation | $ 137 |
Percentage of variation | 10.00% |
Discount rate: 6% | |
Disclosure of defined benefit plans [line items] | |
Obligation | $ 1,383 |
Variation | $ (117) |
Percentage of variation | (9.00%) |
Salaries increase: 0% | |
Disclosure of defined benefit plans [line items] | |
Obligation | $ 1,425 |
Variation | $ (75) |
Percentage of variation | (6.00%) |
Salaries increase: 2% | |
Disclosure of defined benefit plans [line items] | |
Obligation | $ 1,587 |
Variation | $ 87 |
Percentage of variation | 6.00% |
11. NON-FINANCIAL ASSETS AND_19
11. NON-FINANCIAL ASSETS AND LIABILITIES (Details 16) - ARS ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
DisclosureOfSalariesAndSocialSecurityPayableLineItems [Line Items] | ||
Non current salaries and social security payable | $ 163 | $ 177 |
Current salaries and social security payable | 2,726 | 3,180 |
Seniority - based bonus | ||
DisclosureOfSalariesAndSocialSecurityPayableLineItems [Line Items] | ||
Non current salaries and social security payable | 148 | 171 |
Early retirements payable | ||
DisclosureOfSalariesAndSocialSecurityPayableLineItems [Line Items] | ||
Non current salaries and social security payable | 15 | 6 |
Current salaries and social security payable | 10 | 7 |
Salaries and social security contributions | ||
DisclosureOfSalariesAndSocialSecurityPayableLineItems [Line Items] | ||
Current salaries and social security payable | 918 | 855 |
Provision for vacations | ||
DisclosureOfSalariesAndSocialSecurityPayableLineItems [Line Items] | ||
Current salaries and social security payable | 711 | 991 |
Provision for gratifications and annual bonus for efficiency | ||
DisclosureOfSalariesAndSocialSecurityPayableLineItems [Line Items] | ||
Current salaries and social security payable | $ 1,087 | $ 1,327 |
12. FINANCIAL ASSETS AND LIAB_3
12. FINANCIAL ASSETS AND LIABILITIES (Details) - ARS ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
DisclosureOfFinancialAssetsatFairValueThrougProfitorLossLineItems [Line Items] | ||
Non current financial assets at fair value through profit and loss | $ 422 | $ 286 |
Current financial assets at fair value through profit and loss | 15,273 | 21,576 |
Shares | ||
DisclosureOfFinancialAssetsatFairValueThrougProfitorLossLineItems [Line Items] | ||
Non current financial assets at fair value through profit and loss | 422 | 286 |
Current financial assets at fair value through profit and loss | 44 | 0 |
Government securities | ||
DisclosureOfFinancialAssetsatFairValueThrougProfitorLossLineItems [Line Items] | ||
Current financial assets at fair value through profit and loss | 11,234 | 7,418 |
Investment funds | ||
DisclosureOfFinancialAssetsatFairValueThrougProfitorLossLineItems [Line Items] | ||
Current financial assets at fair value through profit and loss | $ 3,995 | $ 14,158 |
12. FINANCIAL ASSETS AND LIAB_4
12. FINANCIAL ASSETS AND LIABILITIES (Details 1) - ARS ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
DisclosureOfTradeAndOtherReceivablesLineItems [Line Items] | ||
Non current trade receivables | $ 3,500 | $ 4,243 |
Non current other receivables | 6,021 | 3,201 |
Non current trade and other receivables | 9,521 | 7,444 |
Current trade receivables | 19,886 | 18,101 |
Current other receivables | 6,603 | 10,166 |
Current trade and other receivables | 26,489 | 28,267 |
CAMMESA Receivable | ||
DisclosureOfTradeAndOtherReceivablesLineItems [Line Items] | ||
Non current trade receivables | 2,647 | 4,234 |
Current trade receivables | 574 | 622 |
Other | ||
DisclosureOfTradeAndOtherReceivablesLineItems [Line Items] | ||
Non current trade receivables | 853 | 9 |
Non current other receivables | 61 | 15 |
Current trade receivables | 139 | 201 |
Current other receivables | 213 | 778 |
Tax credits | ||
DisclosureOfTradeAndOtherReceivablesLineItems [Line Items] | ||
Non current other receivables | 503 | 241 |
Current other receivables | 1,020 | 1,905 |
Allowance for tax credits | ||
DisclosureOfTradeAndOtherReceivablesLineItems [Line Items] | ||
Non current other receivables | (11) | (21) |
Related parties | ||
DisclosureOfTradeAndOtherReceivablesLineItems [Line Items] | ||
Non current other receivables | 1,860 | 1,172 |
Current trade receivables | 384 | 251 |
Current other receivables | 201 | 317 |
Prepaid expenses | ||
DisclosureOfTradeAndOtherReceivablesLineItems [Line Items] | ||
Non current other receivables | 28 | 30 |
Current other receivables | 61 | 102 |
Financial credit | ||
DisclosureOfTradeAndOtherReceivablesLineItems [Line Items] | ||
Non current other receivables | 30 | 55 |
Current other receivables | 209 | 123 |
Guarantee deposits | ||
DisclosureOfTradeAndOtherReceivablesLineItems [Line Items] | ||
Non current other receivables | 1 | 136 |
Current other receivables | 475 | 1,555 |
Contractual receivables in Ecuador | ||
DisclosureOfTradeAndOtherReceivablesLineItems [Line Items] | ||
Non current other receivables | 0 | 1,474 |
Receivable for sale of property, plant and equipment | ||
DisclosureOfTradeAndOtherReceivablesLineItems [Line Items] | ||
Non current other receivables | 112 | 99 |
Current other receivables | 783 | 573 |
Natural Gas Surplus Injection Promotion Program | ||
DisclosureOfTradeAndOtherReceivablesLineItems [Line Items] | ||
Non current other receivables | 2,671 | 0 |
Current other receivables | 2,667 | 3,827 |
Credit with RDSA | ||
DisclosureOfTradeAndOtherReceivablesLineItems [Line Items] | ||
Non current other receivables | 766 | 0 |
Receivables from energy distribution | ||
DisclosureOfTradeAndOtherReceivablesLineItems [Line Items] | ||
Current trade receivables | 8,392 | 9,029 |
Receivables from MAT | ||
DisclosureOfTradeAndOtherReceivablesLineItems [Line Items] | ||
Current trade receivables | 1,035 | 644 |
CAMMESA | ||
DisclosureOfTradeAndOtherReceivablesLineItems [Line Items] | ||
Current trade receivables | 4,943 | 4,263 |
Receivables from oil and gas sales | ||
DisclosureOfTradeAndOtherReceivablesLineItems [Line Items] | ||
Current trade receivables | 2,923 | 1,135 |
Receivables from refinery and distribution | ||
DisclosureOfTradeAndOtherReceivablesLineItems [Line Items] | ||
Current trade receivables | 218 | 1,414 |
Receivables from petrochemistry | ||
DisclosureOfTradeAndOtherReceivablesLineItems [Line Items] | ||
Current trade receivables | 2,544 | 1,364 |
Allowance for doubtful accounts | ||
DisclosureOfTradeAndOtherReceivablesLineItems [Line Items] | ||
Current trade receivables | (1,266) | (822) |
Advances to suppliers | ||
DisclosureOfTradeAndOtherReceivablesLineItems [Line Items] | ||
Current other receivables | 83 | 16 |
Advances to employees | ||
DisclosureOfTradeAndOtherReceivablesLineItems [Line Items] | ||
Current other receivables | 8 | 37 |
Receivables for non-electrical activities | ||
DisclosureOfTradeAndOtherReceivablesLineItems [Line Items] | ||
Current other receivables | 539 | 322 |
Insurance to recover | ||
DisclosureOfTradeAndOtherReceivablesLineItems [Line Items] | ||
Current other receivables | 212 | 298 |
Expenses to be recovered | ||
DisclosureOfTradeAndOtherReceivablesLineItems [Line Items] | ||
Current other receivables | 417 | 548 |
Allowance for other receivables | ||
DisclosureOfTradeAndOtherReceivablesLineItems [Line Items] | ||
Current other receivables | $ (285) | $ (235) |
12. FINANCIAL ASSETS AND LIAB_5
12. FINANCIAL ASSETS AND LIABILITIES (Details 2) - ARS ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Trade And Other Receivables Details 2Abstract | |||
Allowance for the impairment of trade receivables, beginning | $ 975 | $ 790 | $ 218 |
Allowance for impairment | 1,266 | 480 | 499 |
Utilizations | (389) | (76) | (59) |
Reversal of unused amounts | (31) | (2) | (46) |
Gain on net monetary positions | (555) | (179) | (92) |
Reclassification to assets held for sale | 0 | (191) | 0 |
Increase for purchases of subsidiaries | 0 | 0 | 270 |
Allowance for the impairment of trade receivables, ending | $ 1,266 | $ 975 | $ 790 |
12. FINANCIAL ASSETS AND LIAB_6
12. FINANCIAL ASSETS AND LIABILITIES (Details 3) - ARS ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Trade And Other Receivables Details 3Abstract | |||
Allowance for the impairment of other receivables, beginning | $ 256 | $ 372 | $ 655 |
Allowance for impairment | 248 | 55 | 97 |
Decreases | 0 | (25) | (24) |
Increase for subsidiaries acquisition | 0 | 0 | 154 |
(Gain) loss on net monetary position | (115) | 15 | (153) |
Reversal of unused amounts | (54) | (161) | (357) |
Allowance for the impairment of other receivables, ending | $ 296 | $ 256 | $ 372 |
12. FINANCIAL ASSETS AND LIAB_7
12. FINANCIAL ASSETS AND LIABILITIES (Details 4) - ARS ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
DisclosureOfCashAndCashEquivalentsLineItems [Line Items] | ||||
Cash and cash equivalents | $ 9,097 | $ 1,179 | $ 2,613 | $ 1,282 |
Cash | ||||
DisclosureOfCashAndCashEquivalentsLineItems [Line Items] | ||||
Cash and cash equivalents | 17 | 44 | ||
Banks | ||||
DisclosureOfCashAndCashEquivalentsLineItems [Line Items] | ||||
Cash and cash equivalents | 3,133 | 483 | ||
Time deposits | ||||
DisclosureOfCashAndCashEquivalentsLineItems [Line Items] | ||||
Cash and cash equivalents | $ 5,947 | $ 652 |
12. FINANCIAL ASSETS AND LIAB_8
12. FINANCIAL ASSETS AND LIABILITIES (Details 5) - ARS ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of detailed information about borrowings [line items] | ||
Non current borrowings | $ 69,189 | $ 54,816 |
Current borrowings | 12,901 | 8,623 |
Financial borrowings | ||
Disclosure of detailed information about borrowings [line items] | ||
Non current borrowings | 9,743 | 8,785 |
Current borrowings | 11,811 | 7,527 |
Corporate bonds | ||
Disclosure of detailed information about borrowings [line items] | ||
Non current borrowings | 54,927 | 40,993 |
Current borrowings | 934 | 1,091 |
CAMMESA financing | ||
Disclosure of detailed information about borrowings [line items] | ||
Non current borrowings | 4,519 | 5,017 |
Current borrowings | 127 | 0 |
Related parties | ||
Disclosure of detailed information about borrowings [line items] | ||
Non current borrowings | 0 | 21 |
Current borrowings | $ 29 | $ 5 |
12. FINANCIAL ASSETS AND LIAB_9
12. FINANCIAL ASSETS AND LIABILITIES (Details 6) - ARS ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | $ 82,090 | $ 63,439 | $ 47,855 | $ 19,821 |
Fixed interest rate | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | 70,698 | 53,211 | ||
Fixed interest rate | Less than one year | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | 9,032 | 6,891 | ||
Fixed interest rate | One to two years | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | 4,109 | 812 | ||
Fixed interest rate | Two to five years | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | 10,732 | 11,087 | ||
Fixed interest rate | Up to five years | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | 46,825 | 34,421 | ||
Floating interest rates | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | 9,025 | 8,431 | ||
Floating interest rates | Less than one year | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | 2,680 | 877 | ||
Floating interest rates | One to two years | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | 1,809 | 901 | ||
Floating interest rates | Two to five years | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | 2,106 | 3,780 | ||
Floating interest rates | Up to five years | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | 2,430 | 2,873 | ||
Non interest accrual | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | 2,367 | 1,797 | ||
Non interest accrual | Less than one year | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | 1,189 | 855 | ||
Non interest accrual | One to two years | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | 31 | 0 | ||
Non interest accrual | Two to five years | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | 1,147 | 784 | ||
Non interest accrual | Up to five years | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | $ 0 | $ 158 |
12. FINANCIAL ASSETS AND LIA_10
12. FINANCIAL ASSETS AND LIABILITIES (Details 7) - ARS ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Borrowings Details 2Abstract | |||
Borrowings, beginning | $ 63,439 | $ 47,855 | $ 19,821 |
Proceeds from borrowings | 9,250 | 47,130 | 35,918 |
Payment of borrowings | (9,057) | (27,650) | (12,654) |
Accrued interest | 6,766 | 5,396 | 5,740 |
Payment of borrowings' interests | (5,004) | (4,072) | (3,212) |
Net foreign currency exchange difference | 46,895 | 8,546 | 3,723 |
Increase for subsiadiries acquisition | 0 | 0 | 14,155 |
Costs capitalized in property, plant and equipment | 282 | 546 | 516 |
Decrease through shares of subsidiaries | 0 | 0 | (2,493) |
Decrease through offsetting with other credits | 0 | 0 | (4,125) |
Decrease through offsetting with trade receivables | 0 | (6) | (512) |
Gain on net monetary position | (29,974) | (14,301) | (7,250) |
Repurchase and redemption of corporate bonds | (448) | (47) | (1,888) |
Other financial results | (59) | 42 | 116 |
Borrowings, ending | $ 82,090 | $ 63,439 | $ 47,855 |
12. FINANCIAL ASSETS AND LIA_11
12. FINANCIAL ASSETS AND LIABILITIES (Details 8) - ARS ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of detailed information about borrowings [line items] | ||||
Book value | $ 82,090 | $ 63,439 | $ 47,855 | $ 19,821 |
Corporate bonds 1 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Instrument name | 2022 CB | 2022 CB | ||
Company name | Edenor | Edenor | ||
Residual value | $ 166 | $ 172 | ||
Interest | Fixed | Fixed | ||
Rate | 10% | 10% | ||
Expiration | 2022 | 2022 | ||
Book value | $ 6,360 | $ 4,903 | ||
Corporate bonds 2 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Instrument name | Class 4 CB | Class 4 CB | ||
Company name | PAMPA | PAMPA | ||
Residual value | $ 34 | $ 34 | ||
Interest | Fixed | Fixed | ||
Rate | 6% | 6% | ||
Expiration | 10/30/2020 | 10/30/2020 | ||
Book value | $ 1,291 | $ 942 | ||
Corporate bonds 3 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Instrument name | Class E CB | Class E CB | ||
Company name | PAMPA | PAMPA | ||
Residual value | $ 607 | $ 575 | ||
Interest | Fixed | Variable | ||
Rate | Badlar | Badlar | ||
Expiration | 11/13/2020 | 11/13/2020 | ||
Book value | $ 607 | $ 871 | ||
Corporate bonds 4 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Instrument name | T Series CB (1) | Class A CB | ||
Company name | PAMPA | PAMPA | ||
Residual value | $ 741 | $ 282 | ||
Interest | Fixed | Variable | ||
Rate | 8% | Badlar | ||
Expiration | 1/24/2027 | 10/5/2018 | ||
Book value | $ 28,404 | $ 439 | ||
Corporate bonds 5 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Instrument name | Class 1 CB (2) | T Series CB | ||
Company name | PAMPA | PAMPA (1) | ||
Residual value | $ 500 | $ 500 | ||
Interest | Fixed | Fixed | ||
Rate | 7% | 7% | ||
Expiration | 7/21/2023 | 7/21/2023 | ||
Book value | $ 19,228 | $ 14,013 | ||
Corporate bonds 6 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Instrument name | Class 1 CB | |||
Company name | PAMPA (2) | |||
Residual value | $ 750 | |||
Interest | Fixed | |||
Rate | 8% | |||
Expiration | 1/24/2027 | |||
Book value | $ 20,942 | |||
Regulatory 1 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Instrument name | CAMMESA 2014 Agreement | CAMMESA 2014 Agreement | ||
Company name | PAMPA | PAMPA | ||
Residual value | $ 855 | $ 855 | ||
Amount repurchased | $ 0 | |||
Interest | Variable | Variable | ||
Rate | CAMMESA | CAMMESA | ||
Book value | $ 2,158 | $ 2,321 | ||
Regulatory 2 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Instrument name | CAMMESA Mapro | CAMMESA Mapro | ||
Company name | PAMPA | PAMPA | ||
Residual value | $ 174 | $ 140 | ||
Amount repurchased | $ 0 | |||
Interest | Variable | Variable | ||
Rate | CAMMESA | CAMMESA | ||
Book value | $ 254 | $ 285 | ||
Regulatory 3 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Instrument name | CAMMESA Mapro | CAMMESA Mapro | ||
Company name | CPB | CPB | ||
Residual value | $ 1,085 | $ 1,088 | ||
Amount repurchased | $ 0 | |||
Interest | Variable | Variable | ||
Rate | CAMMESA | CAMMESA | ||
Book value | $ 2,234 | $ 2,411 | ||
Financial loans 1 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Company name | PAMPA | PAMPA | ||
Residual value | $ 17,116 | $ 352 | ||
Amount repurchased | $ 0 | |||
Interest | Fixed | Fixed | ||
Rate | Between 2.9% and 7.5% | Between 2.9% and 7.5% | ||
Expiration | Feb-2018 to May-2021 | Feb-2018 to May-2021 | ||
Book value | $ 17,357 | $ 9,786 | ||
Financial loans 2 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Company name | PAMPA | PAMPA | ||
Residual value | $ 1,746 | $ 63 | ||
Amount repurchased | $ 0 | |||
Interest | Variable | Variable | ||
Rate | 6% + Libor | 6% + Libor | ||
Expiration | Sep-2018 to May-2024 | |||
Book value | $ 1,732 | $ 1,719 | ||
Financial loans 3 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Company name | PAMPA | PAMPA | ||
Residual value | $ 550 | $ 2,270 | ||
Amount repurchased | $ 0 | |||
Interest | Fixed | Fixed | ||
Rate | Between 22% y 22.25% | Between 22% y 22.25% | ||
Expiration | May-2024"" | Aug-2018 to Oct-2019 | ||
Book value | $ 561 | $ 3,417 | ||
Financial loans 4 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Company name | Edenor | Edenor | ||
Residual value | $ 1,885 | $ 50 | ||
Amount repurchased | $ 0 | |||
Interest | Fixed | Fixed | ||
Rate | Libor + 4.27% | Libor + 4.27% | ||
Expiration | Sep-2019 to Oct-2019 | 10/11/2020 | ||
Book value | $ 1,904 | $ 1,390 | ||
Financial loans 5 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Book value | 21,554 | |||
Corporate bonds | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Book value | 55,890 | 42,110 | ||
Regulatory | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Book value | $ 4,646 | 5,017 | ||
Financial loans | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Book value | $ 16,312 |
12. FINANCIAL ASSETS AND LIA_12
12. FINANCIAL ASSETS AND LIABILITIES (Details 9) - ARS ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
DisclosureOfTradeAndOtherPayablesLineItems [Line Items] | ||
Non current trade payables | $ 286 | $ 356 |
Non current other payables | 7,876 | 9,101 |
Non current trade and other payables | 8,162 | 9,457 |
Current trade payables | 21,857 | 24,574 |
Current other payables | 2,899 | 2,081 |
Current trade and other payables | 24,756 | 26,655 |
Customer contributions | ||
DisclosureOfTradeAndOtherPayablesLineItems [Line Items] | ||
Non current trade payables | 112 | 118 |
Current trade payables | 15 | 28 |
Funding contributions for substations | ||
DisclosureOfTradeAndOtherPayablesLineItems [Line Items] | ||
Non current trade payables | 33 | 89 |
Current trade payables | 17 | 12 |
Customer guarantees | ||
DisclosureOfTradeAndOtherPayablesLineItems [Line Items] | ||
Non current trade payables | 141 | 149 |
ENRE Penalties and discounts | ||
DisclosureOfTradeAndOtherPayablesLineItems [Line Items] | ||
Non current other payables | 5,097 | 5,738 |
Current other payables | 1,836 | 425 |
Loans (mutuums) with CAMMESA | ||
DisclosureOfTradeAndOtherPayablesLineItems [Line Items] | ||
Non current other payables | 2,282 | 2,782 |
Compensation agreements | ||
DisclosureOfTradeAndOtherPayablesLineItems [Line Items] | ||
Non current other payables | 251 | 183 |
Current other payables | 481 | 830 |
Liability with FOTAE | ||
DisclosureOfTradeAndOtherPayablesLineItems [Line Items] | ||
Non current other payables | 207 | 281 |
Payment agreement with ENRE | ||
DisclosureOfTradeAndOtherPayablesLineItems [Line Items] | ||
Non current other payables | 37 | 108 |
Current other payables | 65 | 93 |
Other | ||
DisclosureOfTradeAndOtherPayablesLineItems [Line Items] | ||
Non current other payables | 2 | 9 |
Current trade payables | 19 | 19 |
Current other payables | 187 | 392 |
Suppliers | ||
DisclosureOfTradeAndOtherPayablesLineItems [Line Items] | ||
Current trade payables | 9,371 | 12,826 |
CAMMESA | ||
DisclosureOfTradeAndOtherPayablesLineItems [Line Items] | ||
Current trade payables | 11,909 | 11,214 |
Discounts to customers | ||
DisclosureOfTradeAndOtherPayablesLineItems [Line Items] | ||
Current trade payables | 37 | 55 |
Customer advances | ||
DisclosureOfTradeAndOtherPayablesLineItems [Line Items] | ||
Current trade payables | 244 | 303 |
Related parties | ||
DisclosureOfTradeAndOtherPayablesLineItems [Line Items] | ||
Current trade payables | 245 | 117 |
Current other payables | 11 | 17 |
Advances for works to be executed | ||
DisclosureOfTradeAndOtherPayablesLineItems [Line Items] | ||
Current other payables | 14 | 21 |
Other creditors | ||
DisclosureOfTradeAndOtherPayablesLineItems [Line Items] | ||
Current other payables | $ 305 | $ 303 |
12. FINANCIAL ASSETS AND LIA_13
12. FINANCIAL ASSETS AND LIABILITIES (Details 10) - ARS ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets at amortized cost | $ 44,644 | $ 32,977 |
Financial assets at fair value through profit and loss | 15,820 | 22,738 |
Subtotal financial assets | 60,464 | 55,715 |
Non financial assets | 1,671 | 3,080 |
Total assets | 62,135 | 58,795 |
Financial liabilities at amortized cost | 104,923 | 90,228 |
Financial liabilities at fair value through profit and loss | 625 | 2,783 |
Subtotal financial liabilities | 105,548 | 93,011 |
Non financial liabilities | 9,509 | 6,540 |
Total liabilities | 115,057 | 99,551 |
Trade and other liabilities | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities at amortized cost | 22,833 | 26,789 |
Financial liabilities at fair value through profit and loss | 576 | 2,783 |
Subtotal financial liabilities | 23,409 | 29,572 |
Non financial liabilities | 9,509 | 6,540 |
Total liabilities | 32,918 | 36,112 |
Borrowings | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities at amortized cost | 82,090 | 63,439 |
Financial liabilities at fair value through profit and loss | 0 | 0 |
Subtotal financial liabilities | 82,090 | 63,439 |
Non financial liabilities | 0 | 0 |
Total liabilities | 82,090 | 63,439 |
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 | 49 | |
Subtotal financial liabilities | 49 | |
Non financial liabilities | 0 | |
Total liabilities | 49 | |
Trade receivables and other receivables | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets at amortized cost | 34,217 | 31,761 |
Financial assets at fair value through profit and loss | 122 | 870 |
Subtotal financial assets | 34,339 | 32,631 |
Non financial assets | 1,671 | 3,080 |
Total assets | 36,010 | 35,711 |
Financial assets at amortized cost | Government securities | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets at amortized cost | 1,330 | 16 |
Financial assets at fair value through profit and loss | 0 | 0 |
Subtotal financial assets | 1,330 | 16 |
Non financial assets | 0 | 0 |
Total assets | 1,330 | 16 |
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 | 11,234 | 7,418 |
Subtotal financial assets | 11,234 | 7,418 |
Non financial assets | 0 | 0 |
Total assets | 11,234 | 7,418 |
Financial assets at fair value through profit and loss | Trusts | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets at amortized cost | 0 | 21 |
Financial assets at fair value through profit and loss | 0 | 0 |
Subtotal financial assets | 0 | 21 |
Non financial assets | 0 | 0 |
Total assets | 0 | 21 |
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 | 466 | 286 |
Subtotal financial assets | 466 | 286 |
Non financial assets | 0 | 0 |
Total assets | 466 | 286 |
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 | 3,995 | 14,158 |
Subtotal financial assets | 3,995 | 14,158 |
Non financial assets | 0 | 0 |
Total assets | 3,995 | 14,158 |
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 | 3 | 6 |
Subtotal financial assets | 3 | 6 |
Non financial assets | 0 | 0 |
Total assets | 3 | 6 |
Cash and cash equivalents | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets at amortized cost | 9,097 | 1,179 |
Financial assets at fair value through profit and loss | 0 | 0 |
Subtotal financial assets | 9,097 | 1,179 |
Non financial assets | 0 | 0 |
Total assets | $ 9,097 | $ 1,179 |
12. FINANCIAL ASSETS AND LIA_14
12. FINANCIAL ASSETS AND LIABILITIES (Details 11) - ARS ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about financial instruments [line items] | ||
Interest income | $ 3,751 | $ 2,333 |
Interest expense | (11,746) | (8,588) |
Foreign exchange, net | (32,549) | (5,819) |
Results from financial instruments at fair value | 2,415 | 2,324 |
Discounted value measurement | (2,713) | (213) |
Other financial results | 284 | (228) |
Total | (40,558) | (10,191) |
Financial assets/liabilities at amortized cost | ||
Disclosure of detailed information about financial instruments [line items] | ||
Interest income | 3,555 | 2,076 |
Interest expense | (10,902) | (8,173) |
Foreign exchange, net | (32,653) | (7,138) |
Results from financial instruments at fair value | 0 | 0 |
Discounted value measurement | (2,713) | (213) |
Other financial results | 363 | (167) |
Total | (42,350) | (13,615) |
Financial assets/liabilities at fair value through profit and loss | ||
Disclosure of detailed information about financial instruments [line items] | ||
Interest income | 196 | 257 |
Interest expense | 0 | 0 |
Foreign exchange, net | 3,260 | 1,850 |
Results from financial instruments at fair value | 2,415 | 2,324 |
Discounted value measurement | 0 | 0 |
Other financial results | 0 | 0 |
Total | 5,871 | 4,431 |
Subtotal financial assets/liabilities | ||
Disclosure of detailed information about financial instruments [line items] | ||
Interest income | 3,751 | 2,333 |
Interest expense | (10,902) | (8,173) |
Foreign exchange, net | (29,393) | (5,288) |
Results from financial instruments at fair value | 2,415 | 2,324 |
Discounted value measurement | (2,713) | (213) |
Other financial results | 363 | (167) |
Total | (36,479) | (9,184) |
Non Financial assets/liabilities | ||
Disclosure of detailed information about financial instruments [line items] | ||
Interest income | 0 | 0 |
Interest expense | (844) | (415) |
Foreign exchange, net | (3,156) | (531) |
Results from financial instruments at fair value | 0 | 0 |
Discounted value measurement | 0 | 0 |
Other financial results | (79) | (61) |
Total | $ (4,079) | $ (1,007) |
12. FINANCIAL ASSETS AND LIA_15
12. FINANCIAL ASSETS AND LIABILITIES (Details 12) - ARS ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of financial assets [line items] | ||
Financial assets at fair value through profit and loss | $ 15,820 | $ 22,738 |
Total assets | 60,464 | 55,715 |
Total liabilities | 105,548 | 93,011 |
Level 1 | ||
Disclosure of financial assets [line items] | ||
Derivative financial instruments | 0 | 0 |
Other receivables | 122 | 870 |
Total assets | 15,395 | 22,446 |
Derivative financial instruments | 0 | 0 |
Total liabilities | 0 | 0 |
Level 2 | ||
Disclosure of financial assets [line items] | ||
Derivative financial instruments | 3 | 5 |
Other receivables | 0 | 0 |
Total assets | 3 | 5 |
Derivative financial instruments | 49 | 120 |
Total liabilities | 49 | 120 |
Level 3 | ||
Disclosure of financial assets [line items] | ||
Derivative financial instruments | 0 | 0 |
Other receivables | 0 | 0 |
Total assets | 422 | 221 |
Derivative financial instruments | 0 | 0 |
Total liabilities | 0 | 0 |
Total | ||
Disclosure of financial assets [line items] | ||
Derivative financial instruments | 3 | 5 |
Other receivables | 122 | 870 |
Total assets | 15,820 | 22,672 |
Derivative financial instruments | 49 | 120 |
Total liabilities | 49 | 120 |
Government securities | ||
Disclosure of financial assets [line items] | ||
Financial assets at fair value through profit and loss | 11,234 | 7,418 |
Government securities | Level 1 | ||
Disclosure of financial assets [line items] | ||
Financial assets at fair value through profit and loss | 11,234 | 7,418 |
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 | 466 | |
Shares | Level 1 | ||
Disclosure of financial assets [line items] | ||
Financial assets at fair value through profit and loss | 44 | |
Shares | Level 2 | ||
Disclosure of financial assets [line items] | ||
Financial assets at fair value through profit and loss | 0 | |
Shares | Level 3 | ||
Disclosure of financial assets [line items] | ||
Financial assets at fair value through profit and loss | 422 | |
Trust | ||
Disclosure of financial assets [line items] | ||
Financial assets at fair value through profit and loss | 221 | |
Trust | Level 1 | ||
Disclosure of financial assets [line items] | ||
Financial assets at fair value through profit and loss | 0 | |
Trust | Level 2 | ||
Disclosure of financial assets [line items] | ||
Financial assets at fair value through profit and loss | 0 | |
Trust | Level 3 | ||
Disclosure of financial assets [line items] | ||
Financial assets at fair value through profit and loss | 221 | |
Investment funds | ||
Disclosure of financial assets [line items] | ||
Financial assets at fair value through profit and loss | 3,995 | 14,158 |
Investment funds | Level 1 | ||
Disclosure of financial assets [line items] | ||
Financial assets at fair value through profit and loss | 3,995 | 14,158 |
Investment funds | Level 2 | ||
Disclosure of financial assets [line items] | ||
Financial assets at fair value through profit and loss | 0 | 0 |
Investment funds | Level 3 | ||
Disclosure of financial assets [line items] | ||
Financial assets at fair value through profit and loss | $ 0 | $ 0 |
13. EQUITY COMPONENTS (Details)
13. EQUITY COMPONENTS (Details) - ARS ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Earning Loss Per Share Details Abstract | |||
(Loss) earnings for continuing operations attributable to the equity holders of the Company | $ 5,506 | $ 12,867 | $ 2,702 |
Weighted average amount of outstanding shares, continuing operations | 1,959,000,000 | 1,936,000,000 | |
Basic and diluted earnings (loss) per share for continuing operations | $ 2.8106 | $ 6.6462 | $ 1.5271 |
(Loss) Earning for discontinued operations attributable to the equity holders of the Company | $ 2,929 | $ (2,068) | $ 173 |
Weighted average amount of outstanding shares, discontinued operations | 1,959,000,000 | 1,936,000,000 | |
Basic and diluted earnings per share for discontinued operations | $ 1.4952 | $ (1.0682) | $ 0.1290 |
Total (loss) earnings attributable to the equity holders of the Company | $ 8,435 | $ 10,799 | $ 2,875 |
Weighted average amount of outstanding shares | 1,959,000,000 | 1,936,000,000 | |
Basic and diluted earnings per share | $ 4.3058 | $ 5.5780 | $ 1.6561 |
14. STATEMENT OF CASH FLOWS COM
14. STATEMENT OF CASH FLOWS COMPLEMENTARY INFORMATION (Details) - ARS ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Adjustments To Reconcile Net Profit To Cash Flows Generated By Operating Activities Details Abstract | |||
Income tax | $ 658 | $ (985) | $ (1,603) |
Accrued interest | 8,254 | 6,255 | 7,072 |
Depreciations and amortizations | 8,816 | 7,739 | 7,102 |
Constitution of allowances, net | 1,061 | 418 | 497 |
Constitution (recovery) of provisions, net | 1,180 | (150) | 951 |
Share of profit from joint ventures and associates | (4,464) | (1,813) | (286) |
Income from sale of associates | (1,052) | 0 | 0 |
Accrual of defined benefit plans | 196 | 518 | 493 |
Net exchange differences | 32,048 | 5,819 | 1,649 |
Result from measurement at present value | 2,792 | 282 | 138 |
Changes in the fair value of financial instruments | (2,372) | (2,324) | (2,368) |
Results from property, plant and equipment sale and decreases | 126 | 56 | 181 |
Impairment of property, plant and equipment and intangible assets | 1,195 | 0 | 0 |
Dividends received | (29) | (56) | (13) |
Compensation agreements | 196 | 1,055 | 831 |
Result from sale of shareholdings in companies and property, plant, and equipment | (1,644) | 0 | (1,015) |
Recognition of income - provisional remedies - CAMMESA Note MEyM No. 2016-04484723 | 0 | 0 | (2,380) |
Income recognition on account of the RTI - Res. SE No. 32/15 | 0 | 0 | (173) |
Higher costs recognition - SE Resolution No. 250/13 and subsequent Notes | 0 | 0 | (887) |
Onerous contract (Ship or pay) | 265 | 142 | (317) |
Gain on net monetary position | (23,696) | (11,478) | (5,770) |
Other | 23 | 306 | 84 |
Adjustments to reconcile net profit (loss) to cash flows generated by operating activities: | $ 23,553 | $ 5,784 | $ 4,186 |
14. STATEMENT OF CASH FLOWS C_2
14. STATEMENT OF CASH FLOWS COMPLEMENTARY INFORMATION (Details 1) - ARS ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Changes In Operating Assets And Liabilites Details 1Abstract | |||
Increase in trade receivables and other receivables | $ (6,594) | $ (2,430) | $ 342 |
(Increase) decrease in inventories | (718) | (425) | 575 |
Increase in trade payables and other payables | 836 | 385 | (632) |
Increase in deferred income | 88 | 1 | (4) |
Increase (decrease) in salaries and social security payable | 511 | (55) | 151 |
Decrease in defined benefit plans | (130) | (115) | (462) |
Increase (Decrease) in tax payables | 1,319 | (988) | 3,392 |
Decrease in provisions | (2,274) | (1,803) | (494) |
Constitution of guarantees of derivative financial instruments | 0 | 0 | (453) |
Income tax and minimum notional income tax paid | (1,841) | (2,119) | (927) |
(Payments) proceeds from derivative financial instruments, net | (897) | 873 | 120 |
Net cash generated by operating activities from discontinued operations | (1,726) | 3,291 | 2,902 |
Total changes in operating assets and liabilities | $ (11,426) | $ (3,385) | $ 4,510 |
14. STATEMENT OF CASH FLOWS C_3
14. STATEMENT OF CASH FLOWS COMPLEMENTARY INFORMATION (Details 2) - ARS ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Significant non-cash transactions from continued operations: | |||
Acquisition of property, plant and equipment through an increase in trade payables | $ 639 | $ (3,898) | $ (1,128) |
Borrowing costs capitalized in property, plant and equipment | (282) | (602) | (880) |
Decreases of property, plant and equipment through an increase in other receivables | 439 | 0 | 0 |
Decrease in borrowings through offsetting with trade receivables | 0 | 0 | (508) |
Increase in asset retirement obligation provision | 1,272 | (59) | (332) |
Constitution of guarantee of derivative financial instruments, net through the delivery of financial assets at fair value through profit or loss | (819) | 718 | 200 |
Outstanding receivable for the sale of interests in subsidiaries and financial assets | 0 | 0 | (2,521) |
Decrease in loans through compensation with trade receivables and other receivables | 0 | 0 | (2,477) |
Decrease in loans through compensation with other credits | 0 | 0 | (4,098) |
Collection of other credits through the delivery of government bonds | 0 | 0 | 1,055 |
Significant non-cash transactions from discontinued operations: | |||
Acquisition of property, plant and equipment through an increase in trade payables | 0 | (13) | (82) |
Decrease (increase) in asset retirement obligation provision | 0 | 464 | (429) |
Dividends pending collection | $ 0 | $ 551 | $ 0 |
17. RELATED PARTIES TRANSACTION
17. RELATED PARTIES TRANSACTIONS (Details) - ARS ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
CYCSA | |||
Disclosure of transactions between related parties [line items] | |||
Sales of goods and services | $ 0 | $ 0 | $ 29 |
Refinor | |||
Disclosure of transactions between related parties [line items] | |||
Sales of goods and services | 593 | 205 | 95 |
Oldelval | |||
Disclosure of transactions between related parties [line items] | |||
Sales of goods and services | 6 | 6 | 2 |
Total related parties | |||
Disclosure of transactions between related parties [line items] | |||
Sales of goods and services | 2,603 | 1,121 | 692 |
Transener | |||
Disclosure of transactions between related parties [line items] | |||
Sales of goods and services | 20 | 48 | 32 |
TGS | |||
Disclosure of transactions between related parties [line items] | |||
Sales of goods and services | 1,937 | 862 | 534 |
Greenwind | |||
Disclosure of transactions between related parties [line items] | |||
Sales of goods and services | 12 | 0 | 0 |
SACDE | |||
Disclosure of transactions between related parties [line items] | |||
Sales of goods and services | $ 35 | $ 0 | $ 0 |
17. RELATED PARTIES TRANSACTI_2
17. RELATED PARTIES TRANSACTIONS (Details 1) - ARS ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Origenes Vida | |||
Disclosure of transactions between related parties [line items] | |||
Purchases of goods and services | $ 0 | $ (21) | $ (13) |
Refinor | |||
Disclosure of transactions between related parties [line items] | |||
Purchases of goods and services | (1,275) | (639) | (246) |
Oldelval | |||
Disclosure of transactions between related parties [line items] | |||
Purchases of goods and services | (60) | (120) | (65) |
Total related parties | |||
Disclosure of transactions between related parties [line items] | |||
Purchases of goods and services | (2,272) | (1,187) | (696) |
Transener | |||
Disclosure of transactions between related parties [line items] | |||
Purchases of goods and services | (3) | (11) | (21) |
TGS | |||
Disclosure of transactions between related parties [line items] | |||
Purchases of goods and services | (783) | (319) | (277) |
SACME | |||
Disclosure of transactions between related parties [line items] | |||
Purchases of goods and services | (82) | (77) | (74) |
SACDE | |||
Disclosure of transactions between related parties [line items] | |||
Purchases of goods and services | $ (69) | $ 0 | $ 0 |
17. RELATED PARTIES TRANSACTI_3
17. RELATED PARTIES TRANSACTIONS (Details 2) - ARS ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Salaverri, Dellatorre, Burgio & Wetzler | |||
Disclosure of transactions between related parties [line items] | |||
Fees for services | $ (49) | $ (27) | $ (48) |
Total related parties | |||
Disclosure of transactions between related parties [line items] | |||
Fees for services | $ (49) | $ (27) | $ (48) |
17. RELATED PARTIES TRANSACTI_4
17. RELATED PARTIES TRANSACTIONS (Details 3) - ARS ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of transactions between related parties [line items] | |||
Other operating expenses | $ 7,526 | $ 3,892 | $ 3,896 |
OCP | |||
Disclosure of transactions between related parties [line items] | |||
Other operating expenses | 265 | 0 | 0 |
Foundation | |||
Disclosure of transactions between related parties [line items] | |||
Other operating expenses | (76) | (55) | (27) |
Total related parties | |||
Disclosure of transactions between related parties [line items] | |||
Other operating expenses | $ (341) | $ (55) | $ (27) |
17. RELATED PARTIES TRANSACTI_5
17. RELATED PARTIES TRANSACTIONS (Details 4) - ARS ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of transactions between related parties [line items] | |||
Finance income | $ 3,751 | $ 2,333 | $ 1,744 |
Total related parties | |||
Disclosure of transactions between related parties [line items] | |||
Finance income | 122 | 106 | 50 |
TGS | |||
Disclosure of transactions between related parties [line items] | |||
Finance income | $ 122 | $ 106 | $ 50 |
17. RELATED PARTIES TRANSACTI_6
17. RELATED PARTIES TRANSACTIONS (Details 5) - ARS ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of transactions between related parties [line items] | |||
Financial expenses | $ 11,944 | $ 8,750 | $ 8,154 |
Grupo EMES | |||
Disclosure of transactions between related parties [line items] | |||
Financial expenses | 0 | (876) | |
Origenes Retiro | |||
Disclosure of transactions between related parties [line items] | |||
Financial expenses | (17) | (10) | (15) |
Total related parties | |||
Disclosure of transactions between related parties [line items] | |||
Financial expenses | $ (17) | $ (10) | $ (891) |
17. RELATED PARTIES TRANSACTI_7
17. RELATED PARTIES TRANSACTIONS (Details 6) - ARS ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Origenes Retiro | |||
Disclosure of transactions between related parties [line items] | |||
Corporate bonds transactions, purchases | $ 0 | $ (10) | $ (1,399) |
Total related parties | |||
Disclosure of transactions between related parties [line items] | |||
Corporate bonds transactions, purchases | $ 0 | $ (10) | $ (1,399) |
17. RELATED PARTIES TRANSACTI_8
17. RELATED PARTIES TRANSACTIONS (Details 7) - ARS ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
CIESA | |||
Disclosure of transactions between related parties [line items] | |||
Dividends received | $ 657 | $ 0 | $ 8 |
Oldeval | |||
Disclosure of transactions between related parties [line items] | |||
Dividends received | 50 | 12 | 0 |
TJSM | |||
Disclosure of transactions between related parties [line items] | |||
Dividends received | 13 | 13 | 6 |
TMB | |||
Disclosure of transactions between related parties [line items] | |||
Dividends received | 15 | 15 | 6 |
Total related parties | |||
Disclosure of transactions between related parties [line items] | |||
Dividends received | $ 735 | $ 40 | $ 20 |
17. RELATED PARTIES TRANSACTI_9
17. RELATED PARTIES TRANSACTIONS (Details 8) - ARS ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
EMESA | ||
Disclosure of transactions between related parties [line items] | ||
Payment of dividends | $ (82) | $ (72) |
APCO Oil | ||
Disclosure of transactions between related parties [line items] | ||
Payment of dividends | 0 | (72) |
Total related parties | ||
Disclosure of transactions between related parties [line items] | ||
Payment of dividends | $ (82) | $ (144) |
17. RELATED PARTIES TRANSACT_10
17. RELATED PARTIES TRANSACTIONS (Details 9) - ARS ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of transactions between related parties [line items] | ||
Trade receivables, current | $ 19,886 | $ 18,101 |
Other receivables, non current | 6,021 | 3,201 |
Other receivables, current | 6,603 | 10,166 |
Trade payables, current | 24,756 | 26,655 |
Other payables, current | 2,899 | 2,081 |
Borrowings, non current | 69,189 | 54,816 |
Borrowings, current | 12,901 | 8,623 |
Provisions, current | 871 | 1,179 |
Ultracore | ||
Disclosure of transactions between related parties [line items] | ||
Trade receivables, current | 0 | 0 |
Other receivables, non current | 0 | 0 |
Other receivables, current | 20 | 15 |
Refinor | ||
Disclosure of transactions between related parties [line items] | ||
Trade receivables, current | 91 | 15 |
Other receivables, non current | 0 | 0 |
Other receivables, current | 0 | 0 |
Trade payables, current | 136 | 78 |
Other payables, current | 0 | 0 |
Borrowings, non current | 0 | |
Borrowings, current | 0 | 0 |
Provisions, current | 0 | |
SACDE | ||
Disclosure of transactions between related parties [line items] | ||
Trade receivables, current | 5 | 37 |
Other receivables, non current | 0 | 0 |
Other receivables, current | 5 | 3 |
Other | ||
Disclosure of transactions between related parties [line items] | ||
Trade receivables, current | 0 | 1 |
Other receivables, non current | 0 | 0 |
Other receivables, current | 1 | 1 |
Trade payables, current | 0 | |
Other payables, current | 10 | |
Borrowings, non current | 0 | |
Borrowings, current | 0 | |
Provisions, current | 0 | |
Oldelval | ||
Disclosure of transactions between related parties [line items] | ||
Trade payables, current | 13 | |
Other payables, current | 0 | |
Borrowings, non current | 0 | |
Borrowings, current | 0 | |
Provisions, current | 0 | |
Origenes 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 | 3 | |
Provisions, current | 0 | |
Origenes Retiro | ||
Disclosure of transactions between related parties [line items] | ||
Trade payables, current | 0 | 0 |
Other payables, current | 0 | 0 |
Borrowings, non current | 21 | |
Borrowings, current | 29 | 2 |
Provisions, current | 0 | |
OCP | ||
Disclosure of transactions between related parties [line items] | ||
Trade payables, current | 0 | 0 |
Other payables, current | 3 | 0 |
Borrowings, non current | 0 | |
Borrowings, current | 0 | 0 |
Provisions, current | 576 | |
Total related parties | ||
Disclosure of transactions between related parties [line items] | ||
Trade receivables, current | 384 | 251 |
Other receivables, non current | 1,860 | 1,172 |
Other receivables, current | 201 | 317 |
Trade payables, current | 245 | 117 |
Other payables, current | 11 | 17 |
Borrowings, non current | 21 | |
Borrowings, current | 29 | 5 |
Provisions, current | 576 | |
TGS | ||
Disclosure of transactions between related parties [line items] | ||
Trade receivables, current | 288 | 191 |
Other receivables, non current | 1,436 | 1,165 |
Other receivables, current | 158 | 110 |
Trade payables, current | 105 | 25 |
Other payables, current | 0 | 0 |
Borrowings, non current | 0 | |
Borrowings, current | 0 | 0 |
Provisions, current | 0 | |
Greenwind | ||
Disclosure of transactions between related parties [line items] | ||
Trade receivables, current | 0 | 0 |
Other receivables, non current | 419 | 0 |
Other receivables, current | 17 | 188 |
SACME | ||
Disclosure of transactions between related parties [line items] | ||
Trade receivables, current | 0 | 0 |
Other receivables, non current | 5 | 7 |
Other receivables, current | 0 | 0 |
Trade payables, current | 0 | 0 |
Other payables, current | 8 | 7 |
Borrowings, non current | 0 | |
Borrowings, current | 0 | 0 |
Provisions, current | 0 | |
Transener | ||
Disclosure of transactions between related parties [line items] | ||
Trade receivables, current | 7 | |
Other receivables, non current | 0 | |
Other receivables, current | 0 | |
Trade payables, current | 4 | 1 |
Other payables, current | 0 | 0 |
Borrowings, non current | 0 | |
Borrowings, current | $ 0 | 0 |
Provisions, current | $ 0 |
17. RELATED PARTIES TRANSACT_11
17. RELATED PARTIES TRANSACTIONS (Details Narrative) - ARS ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Related Parties Transactions Details Narrative Abstract | ||
Total remuneration to executive directors | $ 363 | $ 1,177 |
18. LEASES (Details)
18. LEASES (Details) - ARS ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of finance lease and operating lease by lessee [line items] | ||
Total future minimum lease payments | $ 396 | $ 306 |
2018 | ||
Disclosure of finance lease and operating lease by lessee [line items] | ||
Total future minimum lease payments | 0 | 124 |
2019 | ||
Disclosure of finance lease and operating lease by lessee [line items] | ||
Total future minimum lease payments | 155 | 125 |
2020 | ||
Disclosure of finance lease and operating lease by lessee [line items] | ||
Total future minimum lease payments | 138 | 52 |
2021 | ||
Disclosure of finance lease and operating lease by lessee [line items] | ||
Total future minimum lease payments | $ 103 | $ 5 |
18. LEASES (Details 1)
18. LEASES (Details 1) - ARS ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of finance lease and operating lease by lessor [line items] | ||
Total future minimum lease collections | $ 174 | $ 396 |
2018 | ||
Disclosure of finance lease and operating lease by lessor [line items] | ||
Total future minimum lease collections | 0 | 202 |
2019 | ||
Disclosure of finance lease and operating lease by lessor [line items] | ||
Total future minimum lease collections | $ 174 | $ 194 |
18. LEASES (Details Narrative)
18. LEASES (Details Narrative) - ARS ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Leases Details Narrative Abstract | ||
Expenses for operating assignments of use | $ 125 | $ 126 |
Income from operating assignments of use | $ 190 | $ 212 |
22. OIL AND GAS RESERVES (Detai
22. OIL AND GAS RESERVES (Details) | Dec. 31, 2018MBblsMMcm |
Oil and LNG | |
DisclosureOfProvedReservesLineItems [Line Items] | |
Proved developed reserves | MBbls | 9,179 |
Proved undeveloped reserves | MBbls | 5,818 |
Proved reserves | MBbls | 14,997 |
Natural Gas | |
DisclosureOfProvedReservesLineItems [Line Items] | |
Proved developed reserves | MMcm | 11,604 |
Proved undeveloped reserves | MMcm | 7,990 |
Proved reserves | MMcm | 19,594 |
Argentina | Oil and LNG | |
DisclosureOfProvedReservesLineItems [Line Items] | |
Proved developed reserves | MBbls | 9,179 |
Proved undeveloped reserves | MBbls | 5,818 |
Proved reserves | MBbls | 14,997 |
Argentina | Natural Gas | |
DisclosureOfProvedReservesLineItems [Line Items] | |
Proved developed reserves | MMcm | 11,604 |
Proved undeveloped reserves | MMcm | 7,990 |
Proved reserves | MMcm | 19,594 |