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 February 2016. The report was filed on February 25, 2016, and primarily discloses the monthly position of financial derivatives as of January 31, 2016.
Key Financial Metrics
The filing focuses on financial derivative instruments rather than comprehensive operational results. Key disclosed metrics include:
- Derivative Instrument: Cross Currency Swaps used for coverage purposes.
- Notional Amount: USD 300 million total.
- Fair Value (Current Month): S/. 148,955,000 (as of January 31, 2016).
- Fair Value (Previous Month): S/. 124,770,000.
- Accumulated Gain/Loss Components (2015):
- Increase in fair value: S/. 24,185,000.
- Unrealized loss from exchange rate differences on US$ bonds: S/. 17,400,000.
- Income tax: S/. 1,764,000.
- Commission on Cross Currency Swaps: S/. 2,588,000 (recorded as financial expense).
The filing text does not provide clear values for total revenue, net profit, operating cash flow, margins, total debt, or liquidity ratios.
Material Changes
The fair value of the Cross Currency Swaps increased from S/. 124,770,000 in the previous month to S/. 148,955,000 as of January 31, 2016. The filing notes that the net equity impact includes the increase in fair value, unrealized exchange losses, and income tax, while swap commissions are treated as financial expenses.
Outlook, Risks, and Management Commentary
Management notes that the fair value of Cross Currency Swaps is estimated internally following International Financial Reporting Standards (IFRS) using valuation techniques based on market data. These values are subject to change. The filing does not contain specific forward-looking guidance, operational outlook, or detailed risk factors beyond the inherent volatility of derivative valuations.
Investor Verification Checklist
- Verify the impact of the S/. 2,588,000 swap commission on the current period's financial expenses.
- Confirm the classification of the S/. 24,185,000 fair value increase and S/. 17,400,000 unrealized loss within the equity section of the balance sheet.
- Review the most recent audited financial statements for total revenue, assets, and liabilities, as this filing only references them without providing specific figures.
- Monitor future fluctuations in the fair value of the USD 300 million Cross Currency Swaps due to market data changes.