Business Context and Reporting Period
Company: CEMENTOS PACASMAYO S.A.A. (Pacasmayo Cement Corporation)
Jurisdiction: Republic of Peru
Filing Type: Form 6-K (Report of Foreign Issuer)
Reporting Period: Information as of December 31, 2015, filed for the month of January 2016.
Key Financial Metrics
The filing focuses exclusively on the position of financial derivatives and does not provide comprehensive revenue, profit, cash flow, or debt figures for the period.
- Derivative Instrument: Cross Currency Swaps (Coverage purpose).
- Notional Amount: USD 300 Million total.
- Asset Currency: Peruvian Soles.
- Fair Value (Assets): S/. 124,770,000 (Current Month) vs. S/. 105,276,000 (Previous Month).
- Fair Value (Liabilities): None declared.
- Accumulative Gain/Loss (2015): S/. (18,435,000) loss.
- Impact on Total Revenues: 1.14%.
- Impact on Total Assets: 3.69%.
Material Changes and Components
The net loss of S/. 18,435,000 from derivative financial instruments for 2015 is composed of the following movements:
- Gain: Increase in fair value of financial derivative instruments: S/. 112,519,000.
- Loss: Unrealized loss from exchange rate differences on US$ bonds: S/. 101,687,000.
- Expense: Income tax: S/. 4,098,000.
- Expense: Commission on Cross Currency Swap contracts: S/. 25,169,000.
Note: The first three items are registered under net equity (other components of equity), while the commission is registered as a financial expense in the statement of profit and loss.
Outlook, Risks, and Contingencies
Preliminary Status: The amounts disclosed are preliminary and subject to change following the conclusion of the approval and review of the Financial Statements as of December 31, 2015.
Regulatory Compliance: Calculations were determined according to instructions from the Superintendencia del Mercado de Valores (SMV).
Guidance: The filing text does not provide forward-looking guidance or management commentary beyond the derivative position update.
Investor Verification Checklist
- Verify the final approved Financial Statements for December 31, 2015, to confirm if the preliminary derivative figures change.
- Review the full 20-F annual report for total revenue, profit, and debt figures, as this 6-K only provides derivative-specific data.
- Assess the impact of the S/. 25,169,000 commission expense on the company's net income for the year.
- Monitor the exchange rate volatility between the Peruvian Sol and the US Dollar, given the company's exposure via US$ bonds and cross-currency swaps.