Business Context and Reporting Period
This Form 6-K filing by Cementos Pacasmayo S.A.A. (Pacasmayo Cement Corporation), a Peruvian issuer, covers the month of April 2019. The report specifically discloses the monthly position of financial derivatives as of March 31, 2019, submitted to comply with local regulatory requirements from the Superintendency of Securities (SMV).
Key Financial Metrics: Derivatives
The filing focuses exclusively on financial derivative instruments rather than full operational financial statements. Key metrics include:
- Total Cumulative Profit/Loss (2019 YTD): PEN -3,745,000 (Loss).
- Cross Currency Swaps (Coverage): Notional amount of USD 132 million hedging corporate bonds. Fair value liability as of March 31, 2019: PEN 1,880,297.
- Cross Currency Swaps (Negotiation): Notional amount of USD 18 million. Fair value asset as of March 31, 2019: PEN 262,703.
Material Changes vs. Prior Period
Comparing the current month (March 2019) to the previous month (February 2019), the fair value of the derivative portfolio improved:
- Coverage Swaps: Liability decreased from PEN 3,300,829 to PEN 1,880,297.
- Negotiation Swaps: Asset value increased from a liability of PEN 461,171 to an asset of PEN 262,703.
Outlook, Risks, and Unusual Items
Valuation Methodology: Fair values are estimated internally using International Financial Reporting Standards (IFRS) and market data. The filing explicitly states these amounts are preliminary and subject to change.
Accounting Treatment: The cumulative loss includes variations recorded in both the statement of profit and loss and other comprehensive income, encompassing exchange differences, deferred income, and accrued commissions.
Risk Context: The derivatives are utilized for hedging corporate bond liabilities (USD) against the Peruvian Sol (PEN) and for exchange rate negotiation.
Investor Verification Checklist
- Verify the final audited fair value of the derivatives, as the reported figures are preliminary.
- Confirm the impact of the PEN 3.7 million cumulative loss on the full year 2019 net income.
- Review the underlying corporate bond terms to understand the exposure being hedged by the USD 132 million swap.
- Check subsequent filings for updates on the "subject to change" valuation estimates.