Business Context and Reporting Period
Cementos Pacasmayo S.A.A. (Pacasmayo Cement Corporation), a Peruvian cement manufacturer, filed this Form 6-K on August 12, 2016. The report covers the month of August 2016 and specifically details the monthly position of financial derivatives as of July 31, 2016.
Key Financial Metrics
The filing focuses exclusively on financial derivative instruments and does not provide consolidated revenue, profit, cash flow, or debt figures for the period.
- Derivative Instrument: Cross Currency Swaps used for coverage of corporate bonds.
- Notional Amount: USD 300 million total.
- Underlying Asset: Corporate bonds denominated in Soles.
- Fair Value (July 31, 2016): S/. 92,989,000 (Previous Month: S/. 91,813,000).
- Accumulative Gain/Loss (Year-to-Date): S/. (28,106,000) loss.
Material Changes and Components of Gain/Loss
The total year-to-date loss of S/. 28,106,000 on derivative financial instruments is composed of the following specific movements:
- Decrease in Fair Value: S/. 31,781,000 loss (recorded in net equity/other comprehensive income).
- Unrealized Gain on Exchange Rates: S/. 15,900,000 gain on US$ bonds held (recorded in net equity/other comprehensive income).
- Income Tax: S/. 4,129,000 (recorded in net equity/other comprehensive income).
- Commission Expenses: S/. 16,354,000 (recorded as a financial expense in the statement of profit and loss).
Outlook, Risks, and Management Commentary
Management notes that fair value amounts for Cross Currency Swaps are estimated internally following International Financial Reporting Standards (IFRS) using valuation techniques based on market data. The filing explicitly states that these values are subject to change. The report does not contain forward-looking guidance, general risk factors, or management commentary on operational performance.
Investor Verification Checklist
- Verify the impact of the S/. 16,354,000 commission expense on the current period's net income.
- Confirm the total exposure of the USD 300 million notional amount against current exchange rate volatility.
- Review the full 20-F annual report for consolidated revenue and debt figures, as this 6-K only covers derivative positions.
- Assess the sensitivity of the S/. 92,989,000 fair value to future market data changes as noted in the filing.