Business Context and Reporting Period
Company: CEMENTOS PACASMAYO S.A.A. (Pacasmayo Cement Corporation)
Filing Type: Form 6-K (Report of Foreign Issuer)
Reporting Period: Monthly update for September 2018, with financial data as of August 31, 2018.
Jurisdiction: Republic of Peru
Key Financial Metrics
This filing focuses exclusively on the position of financial derivatives and does not provide consolidated revenue, profit, cash flow, or general liquidity metrics.
| Metric | Value (PEN) | Notes |
|---|---|---|
| Cross Currency Swap Notional Amount | USD 300 Million | Total coverage for corporate bond liability |
| Fair Value (Current Month) | 17,230,000 | As of August 31, 2018 |
| Fair Value (Previous Month) | 4,231,000 | As of July 31, 2018 |
| Cumulative Profit/Loss (YTD) | -17,038,000 | Total loss due to derivative instruments for the year |
Material Changes and Derivative Activity
The filing details a significant increase in the fair value liability of Cross Currency Swaps from the previous month (PEN 4.23 million to PEN 17.23 million). The cumulative loss for the year is driven by the following components recorded in 2018:
- Unrealized Exchange Rate Loss: PEN 15,900,000 (due to holding USD bonds).
- Accrued Commissions: PEN 17,631,000 (recorded as interest expense in the profit and loss account).
- Fair Value Increase: PEN 16,741,000 (includes PEN 1,983,000 due to counterparty risk).
- Deferred Income Tax: PEN 248,000.
Most fair value adjustments are recorded in equity accounts, while commissions and counterparty risk are recorded in financial costs.
Outlook, Risks, and Contingencies
Valuation Methodology: Fair values are estimated internally using International Financial Reporting Standards (IFRS) and market data. The company notes these figures are preliminary and subject to change.
Risk Factors: The primary risk highlighted is exposure to exchange rate fluctuations on USD-denominated corporate bonds, hedged via Cross Currency Swaps. The filing explicitly mentions counterparty risk as a component of the fair value calculation.
Investor Verification Checklist
- Verify the impact of the PEN 17.6 million in accrued commissions on the company's net interest expense and EBITDA.
- Confirm the classification of the PEN 16.7 million fair value increase in equity versus the income statement.
- Review the full annual report (Form 20-F) for consolidated revenue and operating profit, as this 6-K filing does not contain those figures.
- Assess the counterparty risk exposure (PEN 1.98 million) within the derivative portfolio.