Business Context and Reporting Period
This Form 6-K filing by Cementos Pacasmayo S.A.A. (Pacasmayo Cement Corporation) covers the month of September 2016, with financial data presented as of August 31, 2016. The registrant is incorporated in the Republic of Peru and files annual reports on Form 20-F. The document specifically details the monthly position of financial derivatives.
Key Financial Metrics
The filing focuses exclusively on financial derivative instruments rather than comprehensive operational results (revenue, profit, or cash flow).
- Derivative Instrument: Cross Currency Swaps.
- Notional Amount: USD 300 million (total).
- Purpose: Coverage for corporate bonds.
- Underlying Asset: Corporate bonds denominated in Soles.
- Fair Value (August 31, 2016): S/. 88,620,000.
- Fair Value (Previous Month): S/. 92,989,000.
- Accumulated Gain/Loss (Year-to-Date): (S/. 41,421,000) loss.
Material Changes
The fair value of the Cross Currency Swaps decreased from S/. 92,989,000 in the previous month to S/. 88,620,000 as of August 31, 2016. The filing text does not provide comparative revenue, profit, or debt figures for the prior period to assess broader material changes.
Management Commentary and Unusual Items
The accumulated loss of S/. 41,421,000 for the year is composed of the following components:
- Decrease in Fair Value: S/. 36,150,000 (recorded in net equity/other comprehensive income).
- Unrealized Gain (Exchange Rate): S/. 5,400,000 on US$ bonds held (recorded in net equity/other comprehensive income).
- Income Tax: S/. 7,995,000 (recorded in net equity/other comprehensive income).
- Commission Expense: S/. 18,666,000 (recorded as a financial expense in the statement of profit and loss).
Management notes that fair value estimates follow International Financial Reporting Standards (IFRS) using market data and are subject to change. The filing does not contain specific guidance, outlook, or risk factors beyond the inherent volatility of derivative valuations.
Investor Verification Checklist
- Verify the impact of the S/. 18,666,000 commission expense on the current period's net income.
- Confirm the total exposure of the USD 300 million corporate bond portfolio being hedged.
- Review the full annual report (Form 20-F) for comprehensive revenue, EBITDA, and liquidity metrics not included in this derivative-specific filing.
- Monitor future fluctuations in the Soles/USD exchange rate given the reliance on Cross Currency Swaps.