EX-99.1 2 ex99-1.htm EX-99.1

Free translation from the original prepared in Spanish for publication in Argentina 

 

 

 

 

UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS

 

AS OF JUNE 30, 2024

AND FOR THE SIX AND THREE-MONTH PERIODS THEN ENDED

PRESENTED ON COMPARATIVE BASIS

 

 

   
Free translation from the original prepared in Spanish for publication in Argentina
 
 

GLOSSARY OF TERMS

The following are not technical definitions, but they are helpful for the reader’s understanding of some terms used in the notes to the Unaudited Consolidated Condensed Interim Financial Statements of the Company.

Terms   Definitions
ADR   American Depositary Receipt
BCBA   Buenos Aires Stock Exchange 
BNA   Banco de la Nación Argentina
BO   Official Gazette
CAMMESA   Compañía Administradora del Mercado Eléctrico Mayorista S.A.
CB   Corporate Bonds 
CC   Combined Cycle 
CIESA   Compañía de Inversiones de Energía S.A.
CISA   Comercializadora e Inversora S.A. 
CITELEC   Compañía Inversora en Transmisión Eléctrica Citelec S.A.
CNV   National Securities Commission of Argentina 
CNY   Yuan Republic of China
CPB   Central Térmica Piedra Buena
CTB   CT Barragán S.A
CTEB   Central Térmica Ensenada Barragán
CTG   Central Térmica Güemes
CTGEBA   Central Térmica Genelba
CTIW   Central Térmica Ingeniero White
CTLL   Central Térmica Loma de la Lata
CTPP   Central Térmica Parque Pilar
EISA   Energía Inversora S.A.
ENARGAS    National Regulatory Authority of Gas 
ENARSA    Energía Argentina S.A.
ENRE    National Regulatory Authority of Electricity 
GASA   Generación Argentina S.A.
Greenwind   Greenwind S.A.
HIDISA   Hidroeléctrica Diamante S.A.
HINISA   Hidroeléctrica Los Nihuiles S.A.
IAS   International Accounting Standards 
IASB   International Accounting Standards Board
IFRS   International Financial Reporting Standards

   
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GLOSSARY OF TERMS: (Continuation)

 

Terms   Definitions
INDEC   National Institute of Statistics and Censuses
IPIM   Wholesale Domestic Price Index
LGS   Argentine Business Organizations Law 
MBTU   Millon of BTU
MW   Megawatt
NYSE   New York Stock Exchange
OCP   Oleoductos de Crudos Pesados Ltd
OCPSA   Oleoductos de Crudos Pesados S.A.
PB18   Pampa Bloque 18 S.A. 
PEB   Pampa Energía Bolivia S.A. 
PECSA   Pampa Energía Chile S.p.A.
PEN   Federal Executive Branch 
PEPE II   Pampa Energía II Wind Farm
PEPE III   Pampa Energía III Wind Farm
PEPE IV   Pampa Energía IV Wind Farm
PEPE VI   Pampa Energía VI Wind Farm
PESOSA    Pampa Energía Soluciones S.A.
PISA   Pampa Inversiones S.A.
POSA     Petrobras Operaciones S.A. 
SACDE   Argentine Society of Construction and Strategic Development 
SE   Secretary of Energy
TGS   Transportadora de Gas del Sur S.A.
TGU   Transporte y Servicios de Gas en Uruguay S.A.
TJSM   Termoeléctrica José de San Martín S.A.
TMB   Termoeléctrica Manuel Belgrano S.A.
The Company / Pampa   Pampa Energía S.A.
The Group   Pampa Energía S.A. and its subsidiaries
Transba   Empresa de Transporte de Energía Eléctrica por Distribución Troncal de la Provincia de Buenos Aires Transba S.A.
Transener   Compañía de Transporte de Energía Eléctrica en Alta Tensión Transener S.A.
US$   U.S. dollar
UTE   Unión Transitoria de Empresas
VAR   Vientos de Arauco Renovables S.A.U.
WEM   Wholesale Electricity Market

 

   
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UNAUDITED CONSOLIDATED CONDENSED INTERIM STATEMENT OF
COMPREHENSIVE INCOME
For the six and three-month periods ended June 30, 2024, presented on comparative basis.

(In millions of Argentine Pesos (“$”))

 

 

      Six-month   Three-month
  Note   06.30.2024   06.30.2023   06.30.2024   06.30.2023
                   
Revenue 8   783,788   194,256   446,412   110,341
Cost of sales 9   (487,428)   (117,939)   (272,245)   (67,401)
Gross profit     296,360   76,317   174,167   42,940
                   
Selling expenses 10.1   (31,582)   (7,723)   (18,002)   (4,530)
Administrative expenses 10.2   (71,674)   (20,202)   (37,436)   (11,681)
Exploration expenses 10.3   (167)   (1,750)   (85)   (1,702)
Other operating income 10.4   70,781   14,289   41,789   9,430
Other operating expenses 10.4   (43,054)   (7,375)   (16,669)   (3,530)
Impairment  of intangible assets and inventories     (142)   (323)   (110)   (734)
Impairment of financial assets     (49,592)   (299)   (19,762)   (219)
Share of profit from associates and joint ventures 5.2.2   31,894   8,570   (19,522)   5,370
Profit from sale of companies´ interest     5,765   -   4,307   -
Operating income      208,589   61,504   108,677   35,344
                   
Financial income 10.5   2,009   428   662   235
Financial costs 10.5   (81,688)   (41,078)   (37,733)   (26,367)
Other financial results 10.5   62,861   55,461   19,056   40,818
Financial results, net     (16,818)   14,811   (18,015)   14,686
Profit before income tax     191,771   76,315   90,662   50,030
Income tax 10.6   121,166   (7,087)   (1,521)   (7,730)
Profit of the period     312,937   69,228   89,141   42,300
                   
Other comprehensive income                  
Items that will not be reclassified to profit or loss                  
Exchange differences on translation     366,577   193,260   176,884   116,450
Items that may be reclassified to profit or loss                  
Exchange differences on translation     119,869   3,874   37,814   1,389
Other comprehensive income of the period     486,446   197,134   214,698   117,839
Total comprehensive income of the period     799,383   266,362   303,839   160,139

 

 

 

   
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UNAUDITED CONSOLIDATED CONDENSED INTERIM

STATEMENT OF COMPREHENSIVE INCOME (Continuation)

For the six and three-month periods ended June 30, 2024, presented on comparative basis.

(In millions of Argentine Pesos (“$”))

 

      Six-month   Three-month
  Note   06.30.2024   06.30.2023   06.30.2024   06.30.2023
Total income of the period attributable to:                  
                   
Owners of the company     313,160   69,097   90,061   42,179
Non-controlling interest     (223)   131   (920)   121
      312,937   69,228   89,141   42,300
                   
                   
Total comprehensive income of the period attributable to:                  
                   
Owners of the Company     798,631   265,732   304,266   159,749
Non-controlling interest     752   630   (427)   390
      799,383   266,362   303,839   160,139
                   
Earnings per share attributable to equity holders of the Company                  
                   
Total basic and diluted earning per share  13.2   230.26   50.36        

 

 

 

The accompanying notes are an integral part of these Unaudited Consolidated Condensed Interim Financial Statements.

   
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UNAUDITED CONSOLIDATED CONDENSED INTERIM STATEMENT

OF FINANCIAL POSITION

As of June 30, 2024, presented on comparative basis.

(In millions of Argentine Pesos (“$”))

 

  Note   06.30.2024   12.31.2023
ASSETS          
NON-CURRENT ASSETS          
Property, plant and equipment 11.1   2,395,378   2,056,974
Intangible assets 11.2   88,689   77,898
Right-of-use assets     30,308   17,259
Deferred tax asset 11.3   45,252   2
Investments in associates and joint ventures 5.2.2   824,581   542,978
Financial assets at fair value through profit and loss 12.2   24,857   28,040
Other assets     357   349
Trade and other receivables 12.3   16,287   14,524
Total non-current assets     3,425,709   2,738,024
           
CURRENT ASSETS          
Inventories 11.4   209,723   166,023
Financial assets at amortized cost 12.1   92,708   84,749
Financial assets at fair value through profit and loss 12.2   602,341   451,883
Derivative financial instruments     100   250
Trade and other receivables 12.3   500,304   238,294
Cash and cash equivalents 12.4   138,514   137,973
Total current assets     1,543,690   1,079,172
Total assets     4,969,399   3,817,196

 

 

   
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UNAUDITED CONSOLIDATED CONDENSED INTERIM STATEMENT

OF FINANCIAL POSITION (Continuation)

As of June 30, 2024, presented on comparative basis.

(In millions of Argentine Pesos (“$”))

 

  Note   06.30.2024   12.31.2023
SHAREHOLDERS´ EQUITY          
Share capital 13.1   1,360   1,360
Share capital adjustment     7,126   7,126
Share premium     19,950   19,950
Treasury shares 13.1   4   4
Treasury shares adjustment     21   21
Treasury shares cost     (211)   (211)
Legal reserve     41,195   37,057
Voluntary reserve     1,510,003   1,157,389
Other reserves     834   711
Other comprehensive income     732,385   539,702
Retained earnings      429,823   180,627
Equity attributable to owners of the company     2,742,490   1,943,736
Non-controlling interest     7,675   6,960
Total equity     2,750,165   1,950,696
           
LIABILITIES          
NON-CURRENT LIABILITIES          
Provisions 11.5   164,997   119,863
Income tax and minimum notional income tax provision 11.6   66,294   44,614
Deferred tax liability 11.3   46,807   240,686
Defined benefit plans     25,033   13,172
Borrowings 12.5   1,217,319   989,182
Trade and other payables 12.6   35,539   37,301
Total non-current liabilities      1,555,989   1,444,818
           
CURRENT LIABILITIES          
Provisions 11.5   8,268   4,649
Income tax liability 11.6   131,963   14,026
Tax liabilities     44,133   11,427
Defined benefit plans     2,557   2,695
Salaries and social security payable      18,618   15,537
Derivative financial instruments     112   191
Borrowings 12.5   246,274   181,357
Trade and other payables 12.6   211,320   191,800
Total current liabilities      663,245   421,682
Total liabilities      2,219,234   1,866,500
Total liabilities and equity     4,969,399   3,817,196

 

 

 

The accompanying notes are an integral part of these Unaudited Consolidated Condensed Interim Financial Statements.

   
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UNAUDITED CONSOLIDATED CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY

For the six-month period ended June 30, 2024, presented on comparative basis.

(In millions of Argentine Pesos (“$”))

 

  Attributable to owners        
  Equity holders of the company   Retained earnings            
  Share capital   Share capital adjustment   Share premium   Treasury shares   Treasury shares adjustment   Treasury shares cost   Legal reserve   Voluntary reserve   Other reserves   Other comprehensive income   Retained earnings (Accumulated losses)    Subtotal   Non-controlling interest   Total equity
Balance as of December 31, 2022 1,380   7,231   19,950   4   21   (2,280)   8,137   171,243   (448)   113,720   84,505   403,463   1,157   404,620
Legal and voluntary reserve constitution -   -   -   -   -   -   (16)   84,521   -   -   (84,505)   -   -   -
Capital reduction -   -   -   (20)   (105)   2,069   -   (1,944)   -   -   -   -   -   -
Treasury shares acquisition (20)   (105)   -   20   105   -   -   -   -   -   -   -   -   -
Stock compensation plans -   -   -   -   -   -   -   -   170   -   -   170   -   170
Dividens ditribution -   -   -   -   -   -   -   -   -   -   -   -   (103)   (103)
Profit for the six-month period -   -   -   -   -   -   -   -   -   -   69,097   69,097   131   69,228
Other comprehensive income for the six-month period -   -   -   -   -   -   3,646   113,675   -   67,964   11,350   196,635   499   197,134
Balance as of June 30, 2023 1,360   7,126   19,950   4   21   (211)   11,767   367,495   (278)   181,684   80,447   669,365   1,684   671,049
                                                       
Stock compensation plans -   -   -   -   -   -   -   -   989   -   -   989   -   989
Dividens ditribution -   -   -   -   -   -   -   -   -   -   -   -   (325)   (325)
(Loss) Profit for the complementary six-month period -   -   -   -   -   -   -   -   -   -   (34,609)   (34,609)   2,072   (32,537)
Other comprehensive income for the complementary six-month period -   -   -   -   -   -   25,290   789,894   -   358,018   134,789   1,307,991   3,529   1,311,520
Balance as of December 31, 2023 1,360   7,126   19,950   4   21   (211)   37,057   1,157,389   711   539,702   180,627   1,943,736   6,960   1,950,696
Legal and voluntary reserve constitution -   -   -   -   -   -   (539)   181,166   -   -   (180,627)   -   -   -
Stock compensation plans -   -   -   -   -   -   -   -   123   -   -   123   -   123
Dividens ditribution -   -   -   -   -   -   -   -   -   -   -   -   (37)   (37)
Profit for the six-month period -   -   -   -   -   -   -   -   -   -   313,160   313,160   (223)   312,937
Other comprehensive income for the six-month period -   -   -   -   -   -   4,677   171,448   -   192,683   116,663   485,471   975   486,446
Balance as of June 30, 2024 1,360   7,126   19,950   4   21   (211)   41,195   1,510,003   834   732,385   429,823   2,742,490   7,675   2,750,165

 

The accompanying notes are an integral part of these Unaudited Consolidated Condensed Interim Financial Statements.

   
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UNAUDITED CONSOLIDATED CONDENSED INTERIM STATEMENT OF CASH FLOWS

For the six-month period ended June 30, 2024, presented on comparative basis.

(In millions of Argentine Pesos (“$”))

 

  Note   06.30.2024   06.30.2023
Cash flows from operating activities:          
Profit of the period     312,937   69,228
Adjustments to reconcile net profit to cash flows from operating activities 14.1   52,945   16,769
Changes in operating assets and liabilities 14.2   (294,654)   (10,482)
Net cash generated by operating activities     71,228   75,515
           
Cash flows from investing activities:          
Payment for property, plant and equipment acquisitions     (216,377)   (74,884)
Payment for intangible assets acquisitions     (2,457)   -
Collections for sales public securities and shares acquisitions, net     32,883   9,212
(Suscription) Recovery of mutual funds, net     (755)   1,094
Payment for the acquisition of companies     (19,750)   -
Payment for right-of-use     (11,192)   -
Collection for equity interests in companies sales     15,802   1,416
Collection for joint ventures´ share repurchases      30,138   -
Collections for property, plant and equipment sales     -   62
Collections for intangible assets sales     -   1,626
Dividend collection     6,955   -
Loans granted, net     (115)   (217)
Net cash used in investing activities     (164,868)   (61,691)
           
Cash flows from financing activities:          
Proceeds from borrowings 12.5   265,785   46,753
Payment of  borrowings 12.5   (60,169)   (3,357)
Payment of  borrowings interests 12.5   (71,365)   (29,710)
Repurchase and redemption of corporate bonds 12.5   (66,329)   (1,335)
Payments of leases     (1,564)   (75)
Payments of dividends     (37)   (139)
Net cash generated by financing activities     66,321   12,137
           
(Decrease) Increase in cash and cash equivalents     (27,319)   25,961
           
Cash and cash equivalents at the beginning of the year 12.4   137,973   18,757
Cash and cash equivalents at the beginning of the year reclasified to assets classified as held for sale     -   (4,908)
Exchange and conversion difference generated by cash and cash equivalents     27,860   10,939
(Decrease) Increase in cash and cash equivalents     (27,319)   25,961
Cash and cash equivalents at the end of the period 12.4   138,514   50,749

 

 

The accompanying notes are an integral part of these Unaudited Consolidated Condensed Interim Financial Statements.

 

   
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS

For the six-month period ended June 30, 2024, presented on comparative basis.

(In millions of Argentine Pesos (“$”))

 

NOTE 1: GENERAL INFORMATION

General information of the Company

The Company is a fully integrated power company in Argentina, which mainly participates in the electric energy, oil and gas value chains.

In the generation segment, the Company, directly and through its subsidiaries and joint ventures, has a 5,332 MW installed capacity as of June 30, 2024, which represents approximately 12% of Argentina’s installed capacity, and being one of the largest independent generators in the country. Additionally, the Company is currently undergoing a process to expand its installed capacity by an additional 140 MW.

In the oil and gas segment, the Company develops an important activity in gas and oil exploration and production, with operations in 12 production areas and 5 exploratory areas reaching a production level of 13.1 million m3/day of natural gas and 4.9 thousand boe/day of oil in Argentina, during the six-month period ended June 30, 2024. Its main natural gas production blocks are located in the Provinces of Neuquén and Río Negro.

In the petrochemicals segment, operations are located in Argentina, where the Company operates two high-complexity plants producing styrene, synthetic rubber and polystyrene, with a domestic market share ranging between 93% and 100%.

Finally, through the holding and others segment, the Company participates in the electricity transmission and oil and gas transportation businesses. In the electricity transmission business, the Company jointly controls Citelec, which has a controlling interest in Transener, a company engaged in the operation and maintenance of a 22,390 km high-voltage electricity transmission network in Argentina with an 86% share in the Argentine electricity transmission market. In the gas transportation business, the Company jointly controls CIESA, which has a controlling interest in TGS, a company holding a concession for the transportation of natural gas with 9,248 km of gas pipelines in the center, west and south of Argentina, and which is also engaged in the processing and sale of natural gas liquids through the Cerri Complex, located in Bahía Blanca, in the Province of Buenos Aires, in addition to shale gas transportation and conditioning at Vaca Muerta. Besides, the Company owns a 63.74% indirect interest in OCPSA (see Note 5.2.3), licensee company of an oil pipeline in Ecuador that has a transportation capacity of 450 thousand barrels/day. Additionally, the segment includes advisory services provided to related companies.

   
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2024, presented on comparative basis.

(In millions of Argentine Pesos (“$”))

 

NOTE 2: REGULATORY FRAMEWORK

2.1Generation
2.1.1Supply Agreements with CAMMESA

"TerCONF" call for tenders

SE Resolution No. 45/24 extended, for 60 business days as from April 16, 2024, the term to enter into the supply agreements regarding the projects to execute CTGEBA II, with a 300-MW power capacity, and the 11-MW expansion at CTEB’s CC, through CTB; these projects were awarded under SE Resolution No. 961/23 dated November 24, 2023 within the framework of the TerCONF call for tenders launched through SE Resolution No. 621/23 to enter into reliable thermal generation supply agreements with CAMMESA.

Finally, SE Resolution No. 151/24 rendered the call award ineffective and instructed CAMMESA to refund the amounts paid as initial payment, monthly award maintenance payments and the tender maintenance guarantee.

2.1.2 Remuneration for sales to the spot market

SE Resolutions No. 9/24 and No. 99/24 updated the remuneration values for spot generation, providing for a 73.9% and 25% increase as from the February 2024 and June 2024 economic transactions, respectively.

2.1.3 Modification of CAMMESA’s payment priority

Through SE Resolution No. 34/24, the payment order for the WEM’s economic transaction was modified, providing that transmission concessionaires would have payment priority over WEM’s generating agents.

2.1.4 Payment agreement with CAMMESA

On May 27, 2024, an agreement was entered into with CAMMESA instrumenting the exceptional, transitional and unique payment system established in SE Resolution No. 58/24 for the balance of WEM’s unpaid economic transactions. Thus, the December 2023 and January 2024 transactions were canceled through the delivery of government securities (BONO USD 2038 L.A.); whereas the February 2024 transaction was paid in cash with funds available in CAMMESA and transfers made by the Federal Government. In all cases, payments were made without recognizing interest. As of June 30, 2024, the Company received Bonds for $ 73,776 million FV (US$ 82.6 million) and $ 51,473 million in cash, and recorded a $ 46,485 million (US$ 53.5 million) impairment in receivables from CAMMESA considering the received instrument’s market value and the non-recognition of interest under the described cancellation methodology.

   
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2024, presented on comparative basis.

(In millions of Argentine Pesos (“$”))

 

2.1.5 Electric Power Regime

On July 8, 2024, Act No. 27,742, “Bases and Starting Points for the Freedom of Argentinians” was enacted, which introduced the following changes regarding the electric power segment:

i)it unifies the ENRE and ENARGAS as a single regulatory entity;
ii)it empowers the PEN to adjust, within the term of the declared emergency, the electric power regulatory framework comprised of Acts No. 15,336 and No. 24,065 to:
-promote the opening of international electricity trade;
-ensure free commercialization and maximum competition in the industry, guaranteeing end users the free choice of supplier;
-promote the economic dispatch for energy transactions based on the grid’s hourly economic cost, taking into consideration its time-based marginal cost and energy not supplied; 
-adjust the energy grid’s tariffs based on actual supply costs to cover investment needs and guarantee the utilities’ continuous and regular supply;
-make explicit the different items payable by the end user, with the express obligation on the distributor to act as a collection or withholding agent for the amounts collectable for energy, transportation and taxes corresponding to the WEM and the fiscal authority, as applicable; and
-guarantee the development of electricity transmission infrastructure through open, transparent, efficient and competitive mechanisms.

As of the issuance of these Consolidated Condensed Interim Financial Statements, the related regulations have not yet been issued.

 

   
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2024, presented on comparative basis.

(In millions of Argentine Pesos (“$”))

 

NOTE 2: (Continuation)

2.2Oil and Gas

2.2.1 Hydrocarbons Regime

Act No. 27,742 introduces amendments to Act No. 17,319, “Hydrocarbons”, aiming mainly to maximize income from the resources’ exploitation, especially:

-it sets commercialization prices in the domestic market without the PEN’s intervention;
-it provides for the free international trade of hydrocarbons, in the absence of objections by the SE;
-it rules out the possibility of requesting extensions to the exploitation concessions and requires a new call for tenders for awarding existing concessions at least one year before their expiration;
-it eliminates the concessionaire’s obligation to ensure the maximum production of hydrocarbons by observing criteria guaranteeing a proper preservation of reserves;
-the PEN or the Province may grant licenses to process hydrocarbons and their derivatives, and build and operate conditioning plants, hydrocarbon separation plants, natural gas liquefaction plants and other necessary facilities and accessories, without them being necessarily linked to an exploitation concession;
-it incorporates Standard Tender Specifications prepared by the provincial Enforcement Authorities and the SE as a basis for new calls; tenderers will compete on the value of the royalty over a 15% base value;
-it establishes levy values payable in each stage taking as a reference the average oil barrel price, annually adjustable based on the Brent benchmark;
-it admits applications for the reconversion of conventional into unconventional concessions only until December 31, 2028, with a one-time term of 35 years as from the reconversion application date;
-it replaces transportation concessions with transportation authorizations;
-the PEN may grant an authorization for the underground storage of natural gas in depleted natural hydrocarbon reservoirs; these authorizations will not be time-bound or subject to the payment of exploitation bonds; the stored gas will only pay royalties at the time of its first commercialization.

Moreover, Act No. 27,742 introduces the following amendments to Act No. 26,741, “Hydrocarbon Sovereignty”:

-it abrogates the article that declared hydrocarbons self-supply of national public interest;
-it modifies the principles of the hydrocarbons policy, eliminating references to domestic hydrocarbons self-supply, consumer protection regarding the price of hydrocarbon derivatives and the obtaining of exportable hydrocarbon balances to improve the balance of payments.
   
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2024, presented on comparative basis.

(In millions of Argentine Pesos (“$”))

 

NOTE 2: (Continuation)

2.2.2 Gas market

Accession to Plan GasAr’s payment cancellation scheme

On June 19, 2024, the Company opted into the payment cancellation scheme established in Note NO-2024-54277417- APN-SE#MEC for the cancellation of compensations under Plan GasAr. Consequently, it accepted (i) the provisional payment for the periods due February and March 2024, in cash, and (ii) the provisional payment for the periods due up to and including January 2024, and the adjusted payment for the periods due up to and including November 2023, through the delivery of government securities (BONO USD 2038 L.A.). As of June 30, 2024, both items were pending collection, and the Company recorded a $ 1,750 million (US$ 1.9 million) impairment under the related receivables, considering the market value of the instruments maturing in 2038 to be received under the described cancellation methodology.

Natural Gas Exports

In June 2024, Pampa was granted permits to export gas to Chile on an interruptible basis for a volume of 2 million m3/day from June 26, 2024 to May 1, 2025.

2.3Gas Transportation

 

Transitional increase in natural gas transportation tariffs

On March 26, 2024, TGS entered into the 2024 transitional agreement (“RTT24”) with ENARGAS, which establishes a transitory 675% update in natural gas transportation tariffs. This tariff increase entered into effect on April 3, 2024, following the publication of ENARGAS Resolution No. 112/24 in the BO. Under this Resolution, as from May 2024 and until the completion of the Comprehensive Tariff Review (“RTI”), tariffs will be adjusted monthly by the transitory update index, which is composed of: (i) 47% by the wage index - registered private sector published by INDEC, (ii) 27.2% by the IPIM, and (iii) 25.8% by the construction cost index in Greater Buenos Aires - materials chapter, published by INDEC. To such effect, ENARGAS would monthly issue the corresponding resolution adjusting the applicable tariff schemes.

However, on May 9 and June 5, 2024, ENARGAS informed the licensees of the natural gas transportation and distribution utility of the postponement of the above-mentioned monthly tariff adjustment for the months of May and June 2024. Furthermore, it communicated the replacement of the monthly update methodology for the months of July to December 2024. According to ENARGAS’ notification, the monthly tariff update will be based on the expected inflation to be estimated by the Ministry of Economy for such period, and the difference between the actual and estimated inflation will be considered in the determination of the tariff resulting from the RTI process.

   
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2024, presented on comparative basis.

(In millions of Argentine Pesos (“$”))

 

NOTE 2: (Continuation)

On July 1, ENARGAS newly informed TGS of the postponement of the monthly tariff update, this time for the month of July, maintaining tariff schemes in force as from April 3, 2024.

Subsequently, on August 1, 2024, ENARGAS issued Resolution No. 411/24 establishing the new transitional tariff scheme effective as from the following day, contemplating a 4% increase over the then-current tariffs.

Besides, ENARGAS Resolution No. 112/24 establishes that during 2024, TGS must execute an investment plan in the amount of $ 27,690 million (adjustable by the transitional update index). As of the date of issuance of these Consolidated Condensed Interim Financial Statements, TGS has submitted this investment plan, which is currently under execution.

License extension application

On June 19, 2024, ENARGAS issued a technical and legal report indicating that TGS has amply complied with its obligations under the License. Based on this report and after a non-binding public hearing as required by Section 6 of the Natural Gas Act, the ENARGAS comptroller may submit a recommendation to the PEN, which in turn may, within a 120-day term, issue an executive order granting a 20-year License extension.

2.4Transmission

Tariff situation

Pursuant to ENRE Resolutions No. 104/24 and 105/24, the hourly remuneration values effective as from February 19, 2024 (date of publication in the BO) were determined, establishing a 179.7% and 191.1% update against the values in force as from November 2023 for Transener S.A. and Transba S.A., respectively. Moreover, a tariff update was determined according to a formula based on wage, wholesale and consumer price indexes, to be applied on a monthly basis as from May 2024.

However, by instruction of the Ministry of Economy to the SE, on May 9 and 11, 2024 the ENRE informed Transener S.A. and Transba S.A. of the suspension of the tariff update planned for the months of May and June 2024; additionally, the monthly update mechanism was modified as from July 2024 by a formula based on the inflation projected for the July-December 2024 semester. Both companies emphatically rejected these measures due to the significant impact on the income necessary to render the service, the uncertainty on the methodology and the lack of definition on the source of the indexes involved, and requested the ENRE to take all the necessary measures to restore income as per the provisions of ENRE Resolutions No. 104/24 and No. 105/24.

On July 2, 2024, by instruction of the Ministry of Economy and the SE, the ENRE newly informed the suspension of the monthly update planned for July 2024 according to the new scheme. This measure was also rejected by Transener S.A. and Transba S.A., which once again requested the ENRE to regularize the update of their income as early as possible.

 

 

   
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2024, presented on comparative basis.

(In millions of Argentine Pesos (“$”))

 

NOTE 2: (Continuation)

Later, ENRE Resolutions No. 512/24 and No. 513/24 determined the hourly remuneration values effective as from August 1, 2024, establishing a 6% increase on the values in force as from February 19, 2024 for Transener S.A. and Transba S.A..

Moreover, on April 15, 2024, ENRE Resolution No. 223/24 approved the “Program for the electricity transmission tariff review in 2024”, which set the criteria and methodology for the comprehensive tariff review process to be taken into consideration by transmission companies when submitting their tariff proposal applicable as from January 1, 2025.

In this sense, the ENRE has issued a note formally requesting the submission of the necessary information to determine the capital base and evaluate the costs and the investment plan. The information on the capital base, historical costs, property, plant and equipment, the status of easements and existing facilities was submitted to the ENRE in due time and form before May 17, 2024, whereas the projected information on costs, investments and intended annual remuneration must be sent to the ENRE by September 14, 2024.

Pursuant to SE Resolution 34/24, which modified CAMMESA payment order by giving priority to payments to electricity transmission companies over power generators (see Note 2.1.3), as of the date of issuance of these Consolidated Condensed Interim Financial Statements, Transener S.A. has disclosed no delays in the collection of its remuneration.

2.5 Tax regulations

Act No. 27,742 creates the Large Investments’ Incentive Regime (“RIGI”), which grants tax, customs and foreign exchange benefits for projects involving investments in long-term assets for more than US$ 200 million aiming to encourage major domestic and foreign investments, promote the competitiveness of economic sectors, generate predictability and certainty conditions, increase goods and services exports, advance job creation and further the development of local production chains.

Additionally, Act No. 27,743, “Palliative and Relevant Tax Measures Act”, enacted on July 8, 2024, establishes an Exceptional Tax, Customs and Social Security Obligations Regularization Regime for obligations due as of March 31, 2024, establishing the reduction of compensatory interest depending on the time and form of adhesion, the total remission of fines and the discharge of criminal penalties that may apply to such obligations.

Likewise, modifications are introduced in the fourth category of the income tax and the personal property tax, and an Asset Regularization Regime is created for individuals, undivided estates and corporations.

As of the date of these Consolidated Condensed Interim Financial Statements, this Act is pending regulation by the PEN.

 

   
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2024, presented on comparative basis.

(In millions of Argentine Pesos (“$”))

 

NOTE 3: BASIS OF PREPARATION

These Consolidated Condensed Interim Financial Statements for the six-month period ended June 30, 2024 have been prepared pursuant to the provisions of IAS 34, “Interim Financial Information”, are expressed in million pesos and were approved for their issuance by the Company’s Board of Directors on August 7, 2024.

The information included in the Consolidated Condensed Interim Financial Statements is recorded in US dollars, which is the Company’s functional currency and, in accordance with CNV requirements, is presented in pesos, the legal currency in Argentina.

This consolidated condensed interim financial information had been prepared under the historical cost convention, modified by the measurement of financial assets at fair value through profit or loss and they should be read together with the Consolidated Financial Statements as of December 31, 2023, which have been prepared under IFRS Accounting Standards.

These Consolidated Condensed Interim Financial Statements for the six-month period ended June 30, 2024 have not been audited. The Company’s management estimates they include all the necessary adjustments to state fairly the results of operations for the period. The results for the six-month period ended June 30, 2024, does not necessarily reflect in proportion the Company’s results for the complete year.

The accounting policies have been consistently applied to all entities within the Group.

Comparative information

The information as of December 31, 2023, and for the six and three-month periods ended June 30, 2023, disclosed for comparative purposes, arises from the Consolidated Financial Statements as of those dates.

Additionally, certain non-significant reclassifications have been made to those Consolidated Financial Statements´ figures to keep the consistency in the presentation with the current period’s figures.

NOTE 4: ACCOUNTING POLICIES

The accounting policies applied in these Consolidated Condensed Interim Financial Statements are consistent with those used in the Consolidated Financial Statements for the last fiscal year, which ended on December 31, 2023.

Pursuant to CNV General Resolution No. 972/23, early application of IFRS accounting standards and/or amendments thereto is not allowed, unless specifically allowed at the time of adoption.

As of June 30, 2024, the Company has not early applied IFRS accounting standards and/or their amendments.

   
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2024, presented on comparative basis.

(In millions of Argentine Pesos (“$”))

 

NOTE 4: (Continuation)

New accounting standards, amendments and interpretations issued by the IASB effective as of December 31, 2024 and adopted by the Company

The Company has applied the following standards and / or amendments for the first time as of January 1, 2024:

-IAS 1 - “Presentation of Financial Statements” (as amended in January 2020 and October 2022)
-IFRS 16 - “Leases” (as amended in September 2022)
-IAS 7 - “Statement of Cash Flows” and IFRS 7 - “Financial Instruments - Disclosures” (as amended in May 2023)

The application of the detailed standards and amendments did not have any impact on the results of the operations or the financial position of the Company.

NOTE 5: GROUP STRUCTURE

5.1Corporate reorganization

On November 6 and 8, 2023, the Boards of Directors of CISA, the Company and GASA, respectively, resolved to instruct their respective managements to analyze a reorganization proceeding under Section 82 and subsequent sections of the Business Organization Law and tax neutrality under Sections 80 and subsequent articles of the Income Tax Law (as amended in 2019), and draw up the preparatory documentation for the spin-off of CISA’s equity and the subsequent merger through absorption of a portion of its spun-off equity into Pampa and the other portion of its spun-off equity into GASA (the ‘Reorganization Proceeding’).

On March 6, 2024, CISA, the Company and GASA’s Board of Directors approved the Reorganization Proceeding and called the respective general ordinary and extraordinary shareholders’ meetings to consider such proceeding, which were held on April 29, 2024, resolving to approve it.

The Reorganization Proceeding, effective January 1, 2024, entails benefits for the involved companies and the entire economic group, since it allows for greater resource efficiency in financial information management and reduced costs on account of legal and tax advisory fees.

As of the issuance of these Consolidated Condensed Interim Financial Statements, the Reorganization Proceeding’s registration process is underway.

   
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2024, presented on comparative basis.

(In millions of Argentine Pesos (“$”))

 

NOTE 5: (Continuation)

5.2Interest in subsidiaries, associates and joint ventures
5.2.1Subsidiaries information

            06.30.2024   12.31.2023
Company   Country   Main activity   Direct and indirect participation %   Direct and indirect participation %
Autotrol Renovables S.A.   Argentina   Generation   100.00%   100.00%
CISA (1)   Argentina   Trader & investment   -   100.00%
Ecuador Pipeline Holdings Limited   Gran Cayman   Investment   100.00%   100.00%
EISA   Uruguay   Investment   100.00%   100.00%
Enecor S.A.   Argentina   Electricity transportation   70.00%   70.00%
Fideicomiso CIESA    Argentina   Investment   100.00%   100.00%
GASA   Argentina   Generation & Investment   100.00%   100.00%
HIDISA   Argentina   Generation   61.00%   61.00%
HINISA   Argentina   Generation   52.04%   52.04%
Pampa Ecuador Inc    Nevis   Investment   100.00%   100.00%
PEB   Bolivia   Investment   100.00%   100.00%
PE Energía Ecuador LTD   Gran Cayman   Investment   100.00%   100.00%
PECSA   Chile   Trader   100.00%   100.00%
PESOSA   Argentina   Trader   100.00%   100.00%
Petrolera San Carlos S.A.   Venezuela   Oil   100.00%   100.00%
PB18   Ecuador   Oil   100.00%   100.00%
PISA   Uruguay   Investment   100.00%   100.00%
TGU   Uruguay   Gas transportation   51.00%   51.00%
VAR   Argentina   Generation   100.00%   100.00%
Vientos Solutions Argentina S.A.U.   Argentina   Advisory services   100.00%   100.00%

(1) See note 5.1 

 

   
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2024, presented on comparative basis.

(In millions of Argentine Pesos (“$”))

 

NOTE 5: (Continuation)

5.2.2Associates and joint ventures information

The following table presents the main activity and the financial information used for valuation and percentages of participation in associates and joint ventures; unless otherwise indicated, the share capital consists of common shares with one vote per share:

        Information about the issuer    
    Main activity   Date   Share capital   Profit (Loss) of the period   Equity   Direct and indirect participation %
Associates                        
TGS (1)   Gas transportation   06.30.2024   753   152,039   1,690,644   0.382%
                         
Joint ventures                    
CIESA (1)   Investment   06.30.2024   639   77,372   862,402   50.00%
Citelec (2)   Investment   06.30.2024   556   13,002   251,976   50.00%
CTB   Generation   06.30.2024   8,558   (72,240)   387,391   50.00%
OCP   Investment   06.30.2024   39,255   27,181   68,529   63.74%

 

(1) The Company holds an interest of 0.382% in TGS and 50% in CIESA, a company that holds a 51% interest in the share capital of TGS, therefore, the Company has an interest of 25.88% in TGS.

As of June 30, 2024, the quotation of TGS's ordinary shares and ADR published on the BCBA and the NYSE was $ 5,164.75 and US$ 18.98, respectively, granting to Pampa (direct and indirect) ownership an approximate stake market value of $ 1,062,054 million.

(2) The Company holds a 50% interest in Citelec, a company that holds a 52.65% interest in Transener’s capital stock; therefore, the Company has a 26.33% indirect interest in Transener. As of June 30, 2024, Transener’s common share price listed at the BCBA was $ 1,782.50, conferring Pampa’s indirect interest an approximate $ 208,660 million market value.

   
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2024, presented on comparative basis.

(In millions of Argentine Pesos (“$”))

 

NOTE 5: (Continuation)

The detail of the balances of investments in associates and joint ventures is as follows:

    06.30.2024   12.31.2023
Disclosed in non-current assets        
Associates        
OCP   -   18,513
TGS   8,457   10,997
Other   20   18
Total associates   8,477   29,528
Joint ventures        
CIESA   477,762   244,748
Citelec   125,988   66,466
CTB   193,694   202,236
OCP   18,660   -
Total joint ventures   816,104   513,450
Total associates and joint ventures   824,581   542,978

 

The following table shows the breakdown of the result from investments in associates and joint ventures:

 

    06.30.2024   06.30.2023
Associates        
OCP   -   109
TGS   873   594
Total associates   873   703
         
Joint ventures        
CIESA   37,676   4,625
Citelec    6,501   2,086
CTB   (36,120)   1,156
OCP   22,964   -
Total joint ventures   31,021   7,867
Total associates and joint ventures   31,894   8,570

 

   
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2024, presented on comparative basis.

(In millions of Argentine Pesos (“$”))

 

NOTE 5: (Continuation)

The evolution of investments in associates and joint ventures is as follows:

 

    06.30.2024   06.30.2023
At the beginning of the year   542,978   159,833
Dividends   (6,955)   -
Aquisition of equity interests   12,625   -
Share repurchase   (30,138)   -
Sale of equity interests   (10,037)   (5,875)
Share of profit    31,894   8,570
Exchange differences on translation   284,214   77,476
At the end of the period   824,581   240,004

 

5.2.3Investment in OCP

On January 16, 2024, the Company, through PEB, closed the transaction for the acquisition of 2,979,606,613 additional shares, representing a 29.66% stake in OCP, for a price of US$ 15 million under the purchase and sale agreement entered into with Repsol OCP de Ecuador S.A. on May 4, 2023. The closing of the transaction implied the recognition of profits for US$ 5 million under IAS 28.

As of the closing of the transaction, the Company, through PEB, has reached a 63.74% stake in OCP’s capital stock and obtained joint control, pursuant to the commitment to amend the shareholders’ agreement dated January 9, 2024 entered into with PetroOriental OCP Holdings Ltd.

Besides, OCP declared dividends for US$ 13.3 million on January 18, 2024, and repurchased a total of 5,740,902,124 own shares on January 22, 2024, for a unit price of US$ 0.01. Consequently, on January 22, 2024, the Company, through PEB, collected dividends in the amount of US$ 8.5 million and on January 29, 2024, US$ 36.6 million for share repurchases.

It is worth highlighting that on March 23, 2024, a force majeure event occurred due to unpredictable ground conditions that caused an axial compression and rupture of the pipeline at KP136+404. OCPSA immediately activated the pipeline contingency plan and resumed the crude oil transportation service on March 26, 2024.

Additionally, on June 17, 2024, OCPSA declared a force majeure event due to potential damage to the pipeline infrastructure at KP 102+700 as a result of heavy rains in Ecuador, which significantly accelerated the erosion of the Quijos River. Consequently, OCPSA suspended operations and closed the valves as a preventive measure. On June 18, 2024, the pipeline inspection team reported increased erosion between KP 99+700 and KP 100+400, and OCPSA immediately developed an action plan to carry out tasks for draining the crude oil from the pipeline and emergently build 2.8 km of pipeline in KP 99 and 102, which allowed to move away from the river’s erosive process, and operations were resumed on July 3, 2024.

   
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2024, presented on comparative basis.

(In millions of Argentine Pesos (“$”))

 

NOTE 5: (Continuation)

Concession termination

On January 19, 2024, the Ministry of Energy and Mines of Ecuador and OCP SA entered into an addendum to the Authorization Contract to extend the concession term until July 31, 2024. Subsequently, on July 29, 2024, under a Resolution by the Ministry of Energy and Mines of Ecuador and in accordance with the Authorization Contract, the concession term was extended until August 19, 2024 due to the occurrence of force majeure events in March and June 2024 that resulted in the suspension of OCPSA’s operations.

Contingent liabilities in OCPSA

The constitutional protection action filed by the decentralized autonomous government of Orellana against OCPSA, Petroecuador and others due to the force majeure event caused by the rupture of the oil pipeline in 2020 was disallowed in the first instance; as the plaintiff appealed the resolution, the proceeding will be sent back to the Provincial Court of Justice of Orellana.

On the other hand, the constitutional protection action filed by residents of Puerto Madero against OCPSA, the Presidency of the Republic of Ecuador and Petroecuador was accepted; however, OCPSA, Petroecuador and the Presidency of the Republic appealed the resolution, so the proceeding will be referred back to the Provincial Court of Justice of Sucumbíos.

5.2.4Investment in CTB

Impairment of non-financial assets

During the quarter ended June 30, 2024, CTB has identified significant changes in the environment where it operates and, consequently, has determined CTEB’s recoverable amount as of June 30, 2024.

The recoverability assessment resulted in the recognition of impairment losses in CTB with a $ 65,010 million (US$ 71 million) impact on the Company’s share of profits from associates and joint ventures for the period.

   
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2024, presented on comparative basis.

(In millions of Argentine Pesos (“$”))

 

NOTE 5: (Continuation)

5.2.5Investment in CIESA - TGS

Issuance of CB in TGS

On July 24, 2024, and under the Short- and Medium-Term Corporate Bonds Program for up to US$ 2,000 million approved by the CNV, TGS issued Class 3 CB for US$ 490 million maturing on July 24, 2031, which will accrue interest at an 8.50% rate, payable semiannually.

5.3Oil and gas participations

Assets and liabilities as of June 30, 2024 and December 31, 2023 and the production cost of the Joint Ventures and Consortiums in which the Company participates corresponding to the six-month periods ended June 30, 2024 and 2023 are detailed below:

    06.30.2024   12.31.2023
         
       
Non-current assets     140,776    90,360
Current assets    10,717   5,587
Total assets     151,493    95,947
         
Non-current Liabilities    44,953    13,371
Current Liabilities    30,242    23,084
Total liabilities     75,195    36,455
         
         
    06.30.2024   06.30.2023
Production cost    39,640   8,688

 

It is worth highlighting that the information presented does not include charges recorded by the Company as a member of the Joint Ventures and Consortiums.

   
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2024, presented on comparative basis.

(In millions of Argentine Pesos (“$”))

 

NOTE 6: RISKS
 

6.1 Critical accounting estimates and judgments

The preparation of these Consolidated Condensed Interim Financial Statements requires the Company’s Management to make future estimates and assessments, to apply critical judgment and to establish assumptions affecting the application of accounting policies and the amounts of disclosed assets and liabilities, and income and expenses.

Those estimates and judgments are evaluated on a continuous basis and are based on past experiences and other reasonable factors under the existing circumstances. Actual future results might differ from the estimates and evaluations made at the date of preparation of these Consolidated Condensed Interim Financial Statements.

In the preparation of these Consolidated Condensed Interim Financial Statements, management judgements on applying the Company’s accounting policies and sources of information used for the respective estimates are the same as those applied in the Consolidated Financial Statements for the fiscal year ended December 31, 2023.

Impairment of non-financial assets

The Company regularly monitors the existence of events or changes in circumstances that may indicate that its non-financial assets’ book value may not be recoverable.

In the Power Generation segment, during the quarter ended June 30, 2024, the Company has identified significant changes in the environment in which it operates and, therefore, has determined the recoverable amount of the CGUs comprising this segment as of June 30, 2024.

The methodology used in estimating the recoverable amount consisted of calculating the value in use of each CGU based on the present value of future net cash flows expected to be derived from each CGU, discounted at a rate reflecting the weighted average cost of capital used.

Cash flows were prepared based on estimates of the future behavior of key assumptions for the determination of the value in use, including the following: (i) the spot remuneration price evolution; (ii) energy dispatch projections; (iii) costs evolution; (iv) macroeconomic variables such as inflation and exchange rates, among others; and (v) an 11.74% after-tax WACC.

The Company has not recorded impairment losses as a result of the recoverability assessment.

 

6.2 Financial risk management

The Company’s activities are subject to several financial risks: market risk (including the exchange rate risk, the interest rate risk and price risk), credit risk and liquidity risk.

No significant changes have arisen in risk management policies since last fiscal year.

 

   
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2024, presented on comparative basis.

(In millions of Argentine Pesos (“$”))

 

NOTE 7: SEGMENT INFORMATION

The Company is a fully integrated power company in Argentina, which participates in the electricity, oil and gas value chains.

Through its own activities, subsidiaries and shareholdings in joint ventures and associates, and based on the business nature, customer portfolio and risks involved, the following business segments have been identified:

Electricity Generation, principally consisting of the Company’s direct and indirect interests in HINISA, HIDISA, Greenwind (until divestment on August 16, 2023), VAR, CTB, TMB, TJSM and through its own electricity generation activities through thermal plants CTG, CPB, Piquirenda, CTLL, CTGEBA, Ecoenergía, CTPP, CTIW, the HPPL hydroelectric complex and PEPE II, PEPE III and PEPE IV wind farms.

Oil and Gas, principally consisting of the Company’s interests in oil and gas areas and through its direct and indirect interest in CISA (until the corporate reorganization detailed in Note 5.1) and PECSA.

Petrochemicals, comprising of the Company’s own styrenics operations and the catalytic reformer plant operations conducted in local plants.

Holding and Other Business, principally consisting of interests in joint businesses CITELEC, CIESA and OCP and their respective subsidiaries, which hold the concession over the high voltage electricity transmission and over gas and oil transportation, respectively.

The Company manages its operating segment based on its individual net result in U.S. dollars.

   
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2024, presented on comparative basis.

(In millions of Argentine Pesos (“$”))

 

NOTE 7: (Continuation)

 

 

    in million of US$   in million of $
Consolidated profit and loss information for the six-month period ended June 30, 2024   Generation   Oil and gas   Petrochemicals   Holding and others   Eliminations   Consolidated   Consolidated
Revenue - local market   319   258   155   10   -   742   649,186
Revenue - foreign market   3   57   99   -   -   159   134,602
Intersegment revenue   -   53   -   -   (53)   -   -
Cost of sales   (158)   (234)   (226)   -   53   (565)   (487,428)
Gross profit   164   134   28   10   -   336   296,360
                             
Selling expenses   (1)   (29)   (6)   -   -   (36)   (31,582)
Administrative expenses   (25)   (36)   (3)   (19)   -   (83)   (71,674)
Exploration expenses   -   -   -   -   -   -   (167)
Other operating income   32   42   8   1   -   83   70,781
Other operating expenses   (7)   (14)   (3)   (28)   -   (52)   (43,054)
Impairment of intangible assets and inventories   -   -   -   -   -   -   (142)
Impairment of financial assets   (46)   (10)   -   -   -   (56)   (49,592)
Share of profit from associates and joint ventures   (38)   -   -   77   -   39   31,894
Profit from sale of companies´ interest   -   -   -   7   -   7   5,765
Operating income   79   87   24   48   -   238   208,589
                             
Financial income   2   -   -   -   -   2   2,009
Financial costs   (28)   (49)   (2)   (15)   -   (94)   (81,688)
Other financial results   80   (14)   1   7   -   74   62,861
Financial results, net   54   (63)   (1)   (8)   -   (18)   (16,818)
Profit before income tax   133   24   23   40   -   220   191,771
                             
Income tax   100   51   3   (7)   -   147   121,166
Profit of the period   233   75   26   33   -   367   312,937
                             
Depreciation and amortization   40   110   2   -   -   152   131,965

 

   
 26 
Free translation from the original prepared in Spanish for publication in Argentina
 
 

NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2024, presented on comparative basis.

(In millions of Argentine Pesos (“$”))

 

NOTE 7: (Continuation)

 

    in million of US$   in million of $
Consolidated profit and loss information for the six-month period ended June 30, 2024   Generation   Oil and gas   Petrochemicals   Holding and others   Eliminations   Consolidated   Consolidated
Total profit of the period attributable to:                            
Owners of the company   233   75   26   33   -   367   313,160
Non-controlling interest   -   -   -   -   -   -   (223)
                             
Consolidated financial position information as of June 30, 2024                            
Assets   2,795   1,625   198   854   (23)   5,449   4,969,399
Liabilities   709   1,250   159   338   (23)   2,433   2,219,234
                             
Net book values of property, plant and equipment    1,352   1,212   27   36   -   2,627   2,395,378
                             
Additional consolidated information as of June 30, 2024                            
Increases in property, plant and equipment, intangible assets and right-of-use assets   43   197   3   5   -   248   217,438

 

 

   
 27 
Free translation from the original prepared in Spanish for publication in Argentina
 
 

NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2024, presented on comparative basis.

(In millions of Argentine Pesos (“$”))

 

NOTE 7: (Continuation)

 

    in million of US$   in million of $
Consolidated profit and loss information for the six-month period ended June 30, 2023   Generation   Oil and gas   Petrochemicals   Holding and others   Eliminations   Consolidated   Consolidated
Revenue - local market   344   175   181   8   -   708   154,309
Revenue - foreign market   -   111   76   -   -   187   39,947
Intersegment revenue   -   55   -   -   (55)   -   -
Cost of sales   (181)   (198)   (231)   -   55   (555)   (117,939)
Gross profit   163   143   26   8   -   340   76,317
                             
Selling expenses   (1)   (25)   (8)   -   -   (34)   (7,723)
Administrative expenses   (26)   (38)   (3)   (22)   -   (89)   (20,202)
Exploration expenses   -   (7)   -   -   -   (7)   (1,750)
Other operating income   35   25   -   1   -   61   14,289
Other operating expenses   (14)   (13)   (1)   (7)   -   (35)   (7,375)
(Impairment) Recovery of impairment of intangible assets and inventories   -   -   (3)   2   -   (1)   (323)
Impairment of financial assets   -   -   -   (3)   -   (3)   (299)
Share of profit from associates and joint ventures   5   -   -   29   -   34   8,570
Operating income   162   85   11   8   -   266   61,504
                             
Financial income   1   1   -   3   (3)   2   428
Financial costs   (66)   (97)   (1)   (27)   3   (188)   (41,078)
Other financial results   124   25   3   102   -   254   55,461
Financial results, net   59   (71)   2   78   -   68   14,811
Profit before income tax   221   14   13   86   -   334   76,315
                             
Income tax   (21)   -   (2)   (6)   -   (29)   (7,087)
Profit of the period   200   14   11   80   -   305   69,228
                             
                             
Depreciation and amortization   50   73   3   -   -   126   26,881

 

   
 28 
Free translation from the original prepared in Spanish for publication in Argentina
 
 

NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2024, presented on comparative basis.

(In millions of Argentine Pesos (“$”))

 

NOTE 7: (Continuation)

 

    in million of US$   in million of $
Consolidated profit and loss information for the six-month period ended June 30, 2023   Generation   Oil and gas   Petrochemicals   Holding and others   Eliminations   Consolidated   Consolidated
Total profit of the period attributable to:                            
Owners of the company   200   14   11   80   -   305   69,097
Non-controlling interest   -   -   -   -   -   -   131
                             
Consolidated financial position information as of December 31, 2023                            
Assets   2,684   1,396   157   631   (146)   4,722   3,817,196
Liabilities   729   1,213   137   376   (146)   2,309   1,866,500
                             
Net book values of property, plant and equipment   1,345   1,138   27   34   -   2,544   2,056,974
                             
Additional consolidated information as of june 30, 2023                            
Increases in property, plant and equipment   146   217   3   3   -   369   79,714

 

   
 29 
Free translation from the original prepared in Spanish for publication in Argentina
 
 

NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2024, presented on comparative basis.

(In millions of Argentine Pesos (“$”))

 

NOTE 8: REVENUE

 

    06.30.2024   06.30.2023
         
Energy sales in spot market   86,761   22,091
Energy sales by supply contracts   146,767   42,750
Fuel supply   41,419   9,715
Other sales   4,710   157
Generation sales subtotal   279,657   74,713
         
Gas sales   220,732   47,145
Oil sales   49,752   14,428
Other sales   5,845   1,037
Oil and gas sales subtotal   276,329   62,610
         
Products from catalytic reforming sales   118,563   25,404
Styrene sales   27,674   7,656
Synthetic rubber sales   34,866   8,191
Polystyrene sales   36,886   13,749
Other sales   917   245
Petrochemicals sales subtotal   218,906   55,245
         
Technical assistance and administration services sales   8,748   1,630
Other sales   148   58
Holding and others subtotal   8,896   1,688
Total revenue (1)   783,788   194,256

 

 

(1)Revenues from CAMMESA represent 32% and 35% of total revenues from sales for the periods ended June 30, 2024 and 2023, respectively, and correspond mainly to the Power Generation and Oil & Gas segments. Additionally, revenues from ENARSA represent 16% of total revenues from sales for the period ended June 30, 2024, and correspond mainly to the Oil & Gas segment.

 

   
 30 
Free translation from the original prepared in Spanish for publication in Argentina
 
 

NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2024, presented on comparative basis.

(In millions of Argentine Pesos (“$”))

 

NOTE 9: COST OF SALES

 

    06.30.2024   06.30.2023
Inventories at the beginning of the year   166,023   30,724
         
Plus: Charges of the period        
Purchases of inventories, energy and gas    189,311   46,426
Salaries and social security charges   36,120   9,218
Employees benefits   6,340   1,742
Defined benefit plans   3,868   1,149
Works contracts, fees and compensation for services   52,284   12,023
Property, plant and equipment depreciation   125,943   25,419
Intangible assets amortization   1,645   636
Right-of-use assets amortization   936   79
Energy transportation   4,251   1,075
Transportation and freights   8,364   1,893
Consumption of materials   9,224   2,354
Penalties   286   121
Maintenance   10,919   4,628
Canons and royalties   43,339   10,268
Environmental control   2,133   524
Rental and insurance   11,316   2,860
Surveillance and security   2,218   549
Taxes, rates and contributions   2,294   852
Other   997   394
Total charges of the period   511,788   122,210
Exchange differences on translation   19,340   12,719
Less: Inventories at the end of the period   (209,723)   (47,714)
Total cost of sales   487,428   117,939

 

   
 31 
Free translation from the original prepared in Spanish for publication in Argentina
 
 

NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2024, presented on comparative basis.

(In millions of Argentine Pesos (“$”))

 

NOTE 10: OTHER ITEMS OF THE STATEMENT OF COMPREHENSIVE INCOME

 

10.1 Selling expenses

      06.30.2024   06.30.2023
Salaries and social security charges     2,064   532
Employees benefits     185   56
Fees and compensation for services     941   396
Property, plant and equipment depreciation     12   3
Taxes, rates and contributions     6,878   1,460
Transportation and freights     21,187   5,154
Other     315   122
Total selling expenses     31,582   7,723

10.2 Administrative expenses

      06.30.2024   06.30.2023
Salaries and social security charges     25,079   6,376
Employees benefits     3,499   984
Defined benefit plans     8,929   2,493
Fees and compensation for services     14,357   3,302
Compensation agreements     6,242   3,573
Directors' and Sindycs' fees      2,531   749
Property, plant and equipment depreciation     3,429   744
Consumption of materials     210   27
Maintenance     1,139   258
Transport and per diem     779   241
Rental and insurance     134   70
Surveillance and security     415   124
Taxes, rates and contributions     3,551   850
Communications     277   109
Other     1,103   302
Total administrative expenses     71,674   20,202

 

10.3 Exploration expenses

      06.30.2024   06.30.2023
Geological and geophysical expenses     167   48
Derecognition of unproductive wells      -   1,702
Total exploration expenses     167   1,750

 

   
 32 
Free translation from the original prepared in Spanish for publication in Argentina
 
 

NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2024, presented on comparative basis.

(In millions of Argentine Pesos (“$”))

 

NOTE 10: (Continuation)

10.4 Other operating income and expenses

      06.30.2024   06.30.2023
Other operating income          
Insurance recovery     3,127   4
Services provided to third parties     27   75
Results for property, plant and equipment sale and derecognition     47   75
Contingencies recovery     54   15
Tax charges recovery     30   12
Commercial interests     34,198   7,948
Contractual indemnity     -   1,360
GasAr Plan     21,951   4,349
Export Increase Program     8,094   -
Other     3,253   451
Total other operating income     70,781   14,289
           
Other operating expenses        
Provision for contingencies     (23,226)   (522)
Provision for environmental remediation     (806)   (345)
Results for property, plant and equipment sale and derecognition     (54)   (19)
Tax on bank transactions      (5,782)   (1,737)
PAIS import tax     (1,188)   -
Donations and contributions     (694)   (271)
Institutional promotion     (556)   (239)
Costs of concessions agreements completion     (2,539)   (1,036)
Contractual penalty     -   (1,360)
Royalties GasAr Plan     (3,095)   (637)
Other     (5,114)   (1,209)
Total other operating expenses     (43,054)   (7,375)

 

 

   
 33 
Free translation from the original prepared in Spanish for publication in Argentina
 
 

NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2024, presented on comparative basis.

(In millions of Argentine Pesos (“$”))

 

NOTE 10: (Continuation)

 

10.5 Financial results

06.30.2024   06.30.2023
Financial income      
Financial interest    1,129   177
Other interest   880   251
Total financial income   2,009   428
       
Financial costs        
Financial interests (1)   (59,977)   (33,667)
Commercial interests   (362)   (83)
Fiscal interests   (14,229)   (6,055)
Other interests   (5,264)   (405)
Bank and other financial expenses   (1,856)   (868)
Total financial costs   (81,688)   (41,078)
       
Other financial results        
Foreign currency exchange difference, net   (10,071)   14,057
Changes in the fair value of financial instruments   84,670   42,429
Result from present value measurement   (3,399)   (1,030)
Result from repurchase of CB   (8,114)   72
Other financial results   (225)   (67)
Total other financial results   62,861   55,461
         
Total financial results, net   (16,818)   14,811

 

(1) Net of $ 5,947 million and $ 1,570 million capitalized in property, plant and equipment for the six-month periods ended June 31, 2024 and 2023, respectively.

   
 34 
Free translation from the original prepared in Spanish for publication in Argentina
 
 

NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2024, presented on comparative basis.

(In millions of Argentine Pesos (“$”))

 

NOTE 10: (Continuation)

10.6 Income tax

 

The breakdown of income tax charge is:

 

      06.30.2024   06.30.2023
Current tax      132,517   5,302
Deferred tax      (253,683)   1,336
Difference between previous fiscal period income tax provision and the income tax statement     -   449
Total income tax - (Profit) Loss      (121,166)   7,087

 

Below is a reconciliation between income tax expense and the amount resulting from application of the tax rate on the profit before taxes:

 

      06.30.2024   06.30.2023
Profit before income tax     191,771   76,315
Current income tax rate     35%   35%
Income tax at the statutary tax rate     67,120   26,710
Share of profit from companies     (11,163)   (3,000)
Non-taxable results     1,326   (1,917)
Effects of exchange differences and other results associated with the valuation of the currency, net     56,318   36,309
Effects of valuation of property, plant and equipment, intangible assets and financial assets     (433,771)   (85,437)
Difference between previous fiscal year income tax provision and deferred tax and the income tax statement     15,499   775
Effect for tax inflation adjustment     196,746   31,654
Reversal of loss carryforwards provision     (12,317)   -
Non-deductible cost     (946)   1,943
Other     22   50
Total income tax - (Profit) Loss      (121,166)   7,087

 

   
 35 
Free translation from the original prepared in Spanish for publication in Argentina
 
 

NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2024, presented on comparative basis.

(In millions of Argentine Pesos (“$”))

 

NOTE 11: NON-FINANCIAL ASSETS AND LIABILITIES

11.1Property, plant and equipment

 

      Original values    
Type of good     At the beginning    Increases (1)   Transfers   Decreases   Held for sales assets   Traslation effect    
                At the end 
                 
Lands     10,642   -   -   -   -   1,364   12,006
Buildings     115,809   -   316   (6)   -   14,857   130,976
Equipment and machinery     1,584,615   130   74,789   (5)   -   204,154   1,863,683
Wells     966,529   3,078   99,107   -   -   128,586   1,197,300
Mining property     160,153   -   223   -   -   20,529   180,905
Vehicles     8,026   127   -   (65)   -   1,029   9,117
Furniture and fixtures and software equipment     50,878   2,345   849   (367)   -   6,678   60,383
Communication equipments     1,016   -   -   -   -   130   1,146
Materials, spare parts and tools     34,178   17,002   (16,067)   -   -   7,716   42,829
Petrochemical industrial complex     26,047   104   4,671   (6)   -   3,561   34,377
Civil works     19,443   -   56   -   -   2,491   21,990
Work in progress     336,707   174,064   (147,235)   -   -   41,612   405,148
Advances to suppliers     52,778   6,749   (16,709)   -   -   6,514   49,332
Other goods     354   -   -   -   -   46   400
Total at 06.30.2024     3,367,175   203,599   -   (449)   -   439,267   4,009,592
Total at 06.30.2023     651,459   79,714   -   (4,677)   (34,333)   310,297   1,002,460

 

 

(1) Includes $ 5,947 million and $ 1,570 million of financial costs capitalized for the six-month periods ended June 30, 2024 and 2023, respectively.

   
 36 
Free translation from the original prepared in Spanish for publication in Argentina
 
 

NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2024, presented on comparative basis.

(In millions of Argentine Pesos (“$”))

 

NOTE 11: (Continuation)

 

      Depreciation   Net book values
Type of good     At the beginning    Decreases    For the period   Held for sales assets   Traslation effect   At the end    At the end   At 12.31.2023
                 
                 
Lands     -   -   -   -   -   -   12,006   10,642
Buildings     (67,010)   4   (3,346)   -   (8,785)   (79,137)   51,839   48,799
Equipment and machinery     (605,189)   1   (52,070)   -   (80,489)   (737,747)   1,125,936   979,426
Wells     (467,546)   -   (65,180)   -   (63,428)   (596,154)   601,146   498,983
Mining property     (100,395)   -   (3,658)   -   (13,068)   (117,121)   63,784   59,758
Vehicles     (4,606)   27   (629)   -   (627)   (5,835)   3,282   3,420
Furniture and fixtures and software equipment     (45,350)   367   (2,275)   -   (5,932)   (53,190)   7,193   5,528
Communication equipments     (903)   -   (46)   -   (118)   (1,067)   79   113
Materials, spare parts and tools     (1,315)   -   (72)   -   (174)   (1,561)   41,268   32,863
Petrochemical industrial complex     (15,829)   6   (1,514)   -   (2,113)   (19,450)   14,927   10,218
Civil works     (1,711)   -   (589)   -   (255)   (2,555)   19,435   17,732
Work in progress     -   -   -   -   -   -   405,148   336,707
Advances to suppliers     -   -   -   -   -   -   49,332   52,778
Other goods     (347)   -   (5)   -   (45)   (397)   3   7
Total at 06.30.2024     (1,310,201)   405   (129,384)   -   (175,034)   (1,614,214)   2,395,378    
Total at 06.30.2023     (267,995)   2,072   (26,166)   3,250   (128,617)   (417,456)   585,004    
Total at 12.31.2023                                 2,056,974

 

 

   
 37 
Free translation from the original prepared in Spanish for publication in Argentina
 
 

NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2024, presented on comparative basis.

(In millions of Argentine Pesos (“$”))

 

NOTE 11: (Continuation)

11.2 Intangible assets

 

    Original values
Type of good   At the beginning   Increase   Decrease   Held for sales assets   (Impairment) Recovery of impairment (1)   Traslation effect    
              At the end
               
Concession agreements   2,027   -   -   -   -   259   2,286
Goodwill   27,978   -   -   -   -   3,584   31,562
Intangible identified in acquisitions of companies   56,049   190   -   -   -   7,199   63,438
Digital assets   -   2,457   -   -   (110)   1   2,348
Total at 06.30.2024   86,054   2,647   -   -   (110)   11,043   99,634
Total at 06.30.2023   25,582   -   (1,626)   (8,054)   411   11,011   27,324
                             
                             
    Amortization            
Type of good   At the beginning   For the period   Held for sales assets   Traslation effect            
          At the end        
                   
Concession agreements   (1,976)   (36)   -   (255)   (2,267)        
Intangible identified in acquisitions of companies   (6,180)   (1,609)   -   (889)   (8,678)        
Total at 06.30.2024   (8,156)   (1,645)   -   (1,144)   (10,945)        
Total at 06.30.2023   (1,218)   (636)   472   (690)   (2,072)        
                             
                             
    Net book values                    
Type of good   At the end   At 12.31.2023                    
                         
                             
Concession agreements   19   51                    
Goodwill   31,562   27,978                    
Intangible identified in acquisitions of companies   54,760   49,869                    
Digital assets   2,348   -                    
Total at 06.30.2024   88,689                        
Total at 06.30.2023   25,252                        
Total at 12.31.2023       77,898                    

(1)Recoverable value based on the market value of digital assets.
   
 38 
Free translation from the original prepared in Spanish for publication in Argentina
 
 

NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2024, presented on comparative basis.

(In millions of Argentine Pesos (“$”))

 

NOTE 11: (Continuation)

11.3 Deferred tax assets and liabilities

 

The composition of the deferred tax assets and liabilities is as follows:

 

    06.30.2024   12.31.2023
Tax loss carryforwards   5,626   116,514
Property, plant and equipment   134,446   105
Intangible assets   -   1
Financial assets at fair value through profit and loss   3,626   127
Trade and other receivables   624   366
Provisions   62,551   42,542
Salaries and social security payable    582   540
Defined benefit plans   6,930   3,343
Trade and other payables   587   258
Deferred tax asset   214,972   163,796
Property, plant and equipment   (28,492)   (179,201)
Intangible assets   (30,185)   (27,229)
Other assets   (4,452)   (985)
Investments in companies   (9,253)   (5,343)
Inventories   (34,716)   (36,640)
Financial assets at fair value through profit and loss   (8)   (14,568)
Trade and other receivables   (13,792)   (8,182)
Tax liabilities   (319)   (322)
Tax inflation adjustment   (95,310)   (132,010)
Deferred tax liability   (216,527)   (404,480)

 

Deferred tax assets and liabilities are offset only when there is a legally enforceable right to offset tax assets and liabilities; and when deferred income tax charges are associated with the same fiscal authority. Therefore, they are disclosed in the Consolidated Condensed Interim Statement of Financial Position:

 

    06.30.2024   12.31.2023
Deferred tax asset, net   45,252   2
Deferred tax liability, net   (46,807)   (240,686)

 

 

   
 39 
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2024, presented on comparative basis.

(In millions of Argentine Pesos (“$”))

 

NOTE 11: (Continuation)

11.4 Inventories

 

  06.30.2024   12.31.2023
Current          
Materials and spare parts     134,152   103,969
Advances to suppliers     3,389   3,627
In process and finished products     72,182   58,427
Total (1)     209,723   166,023

 

(1) It includes impairment loss as a result of the performed recoverability assessment for $ 32 million (US$ 0.05 million), $ 734 million (US$ 3 million) and $ 739 million (US$ 3 million) as of June 30, 2024 and 2023 and December 31, 2023, respectivelly.

11.5 Provisions

    06.30.2024   12.31.2023
Non-Current        
Contingencies   127,629   88,042
Asset retirement obligation and wind turbines decommision   23,249   19,463
Environmental remediation   14,119   12,358
Total non-current   164,997   119,863
         
Current        
Asset retirement obligation and wind turbines decommision   3,438   2,775
Environmental remediation   1,328   917
Other provisions   3,502   957
Total current   8,268   4,649

 

 

   
 40 
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2024, presented on comparative basis.

(In millions of Argentine Pesos (“$”))

 

NOTE 11: (Continuation)

 

The evolution of provisions is shown below:

 

    06.30.2024
    Contingencies   Asset retirement obligation and wind turbines decommision   Environmental remediation
             
At the beginning of the year   88,042   22,238   13,275
Increases   28,101   1,575   844
Decreases   (4)   -   (152)
Exchange differences on translation   11,544   2,945   1,676
Reversal of unused amounts   (54)   (71)   (196)
At the end of the period   127,629   26,687   15,447
             
             
    06.30.2023
    Contingencies   Asset retirement obligation and wind turbines decommision   Environmental remediation
             
At the beginning of the year   19,047   4,853   2,935
Increases   762   383   161
Decreases   (75)   -   (77)
Exchange differences on translation   8,373   1,926   1,271
Liabilities associated to held for sale assets   -   (241)   -
Reversal of unused amounts   (15)   (966)   (130)
At the end of the period   28,092   5,955   4,160

 

 

 

11.5.1 Provision for lawsuits and contingencies

In connection with the international arbitration proceeding brought by POSA against the Company, on April 3, 2024, the Court of Arbitration of the International Chamber of Commerce (“ICC”) notified the parties of the Final Award rendered on April 2, 2024, in which it resolved to: (i) disallow all but one of POSA’s claims, ordering the Company to pay the corresponding 33.60% of (a) the revenues collected under the Leasing Agreement up to the Final Award’s date for US$ 18.8 million, plus a 6% annual interest rate, and (b) the collections to be received by the Company in the future under the before-mentioned agreement; and (ii) sustain the Company’s counterclaim for US$ 2 million plus interest at an annual 6% rate. On April 10, 2024, the Company filed a plea of partial nullity against the Final Award.

 

   
 41 
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2024, presented on comparative basis.

(In millions of Argentine Pesos (“$”))

 

NOTE 11: (Continuation)

11.6 Income tax and minimum notional income tax provision 

      06.30.2024   12.31.2023
Non-current          
Income tax, net of witholdings and advances     61,420   40,472
Minimum notional income tax     4,874   4,142
Total non-current     66,294   44,614
           
Current        
Income tax, net of witholdings and advances     131,963   14,026
Total current     131,963   14,026

NOTE 12: FINANCIAL ASSETS AND LIABILITIES

12.1Financial assets at amortized cost

 

      06.30.2024   12.31.2023
Current          
Term deposit     92,708   81,511
Notes receivable     -   3,238
Total current     92,708   84,749

 

Due to the short-term nature of investments at amortized cost, their book value is not considered to differ from their fair value.

 

   
 42 
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2024, presented on comparative basis.

(In millions of Argentine Pesos (“$”))

 

NOTE 12: (Continuation)

12.2Financial assets at fair value through profit and loss

 

      06.30.2024   12.31.2023
Non-current          
Shares     24,857   28,040
Total non-current     24,857   28,040
           
Current          
Government securities      486,307   313,964
Corporate bonds     52,331   64,125
Shares     61,214   71,141
Mutual funds     2,489   2,653
Total current     602,341   451,883

 

12.3Trade and other receivables

 

Note   06.30.2024   12.31.2023
Non-Current          
Receivables     62   55
Trade receivables     62   55
           
Non-Current          
Related parties 16   7,144   9,040
Tax credits     2,897   1,004
Receivables for sale of associates     585   1,038
Contractual indemnity credit     2,596   2,959
Expenses to be recovered     2,633   -
Other     370   428
Other receivables     16,225   14,469
Total non-current     16,287   14,524

 

   
 43 
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2024, presented on comparative basis.

(In millions of Argentine Pesos (“$”))

 

NOTE 12: (Continuation)

 

  Note   06.30.2024   12.31.2023
Current          
Receivables     271,358   84,914
CAMMESA     99,466   80,957
Related parties 16   8,982   3,882
Impairment of financial assets     (1,897)   (1,203)
Trade receivables, net     377,909   168,550
           
Current          
Related parties 16   6,748   5,800
Tax credits     5,870   7,903
Prepaid expenses     13,223   4,287
Guarantee deposits     47,891   15,378
Expenses to be recovered     5,993   4,934
Insurance to be recovered     2,851   3,589
Receivables for sale of associates     1,913   1,046
GasAr Plan     24,802   8,658
Advances to employees     269   8,395
Contractual indemnity credit     1,484   1,827
Receivable for maintenance contract     1,534   -
Receivable for sale of fiancial instruments     -   5
Other     9,830   7,934
Impairment of other receivables     (13)   (12)
Other receivables, net     122,395   69,744
           
Total current     500,304   238,294

 

 

Due to the short-term nature of trade and other receivables, its book value is not considered to differ from its fair value. For non-current trade and other receivables, fair values do not significantly differ from book values.

   
 44 
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2024, presented on comparative basis.

(In millions of Argentine Pesos (“$”))

 

NOTE 12: (Continuation)

 

The movements in the impairment of financial assets are as follows:

 

    06.30.2024   06.30.2023
At the beginning of the year     1,203   1,039
Impairment     47,911   228
Write off for utilization     (47,270)   -
Reversal of unused amounts     -   (6)
Exchange differences on translation     53   82
At the end of the period     1,897   1,343

 

 

The movements in the impairment of other receivables are as follows:

 

    06.30.2024   06.30.2023
At the beginning of the year     12   38
Impairment      3   6
Reversal of unused amounts     (2)   (24)
Exchange differences on translation     -   7
At the end of the period     13   27
12.4Cash and cash equivalents
      06.30.2024   12.31.2023
Cash     183   162
Banks     17,963   24,815
Mutual funds     120,368   112,996
Total     138,514   137,973

   
 45 
Free translation from the original prepared in Spanish for publication in Argentina
 
 

NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2024, presented on comparative basis.

(In millions of Argentine Pesos (“$”))

 

NOTE 12: (Continuation)

12.5Borrowings

 

      06.30.2024   12.31.2023
Non-Current          
Financial borrowings     36,480   -
Corporate bonds     1,180,839   989,182
Total non-current     1,217,319   989,182
           
Current          
Bank overdrafts     -   24,857
Financial borrowings     148,425   54,376
Corporate bonds     97,849   102,124
Total current     246,274   181,357
Total     1,463,593   1,170,539

 

As of June 30, 2024, and December 31, 2023 the fair value of the Company’s CB amount approximately to $ 1,231,040 million and $ 1,091,685 million, respectively. Such values were calculated on the basis of the determined market price of the Company’s CB at the end of each period (fair value Level 1).

The carrying amounts of short-term borrowings and current account advances approximate their fair value due to their short-term maturity.

The long-term borrowings were measured at amortized cost, which does not differ significantly from its fair value.

As of the issuance of these Consolidated Condensed Interim Financial Statements, the Company is in compliance with the covenants provided for in its loan’s contracts.

   
 46 
Free translation from the original prepared in Spanish for publication in Argentina
 
 

NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2024, presented on comparative basis.

(In millions of Argentine Pesos (“$”))

 

NOTE 12: (Continuation)

12.5.1 Loans´evolution:

The evolution of the consolidated loans over the six-month periods ended June 30, 2024 and 2023 is disclosed below.

      06.30.2024   06.30.2023
Borrowings at the beginning of the year     1,170,539   285,766
Proceeds from borrowings     265,785   46,753
Payment of borrowings     (60,169)   (3,357)
Accrued interest     59,938   33,664
Payment of interests     (71,365)   (29,710)
Repurchase and redemption of CB     (66,329)   (1,335)
Result from repurchase of CB     8,114   (72)
Foreign currency exchange difference     (7,547)   (25,345)
Liabilities associated to held for sale assets     -   (20,280)
Borrowing costs capitalized in property, plant and equipment     5,947   1,570
Exchange differences on translation     158,680   137,864
Borrowings at the end of the period     1,463,593   425,518

12.5.2 Redemption of Class 17 and 15 and CB and issuance of Class 19 and 20 CB

On February 5, 2024, Pampa redeemed all its Class 17 CB for a total amount of $ 5,980 million.

Additionally, on February 29, 2024, the Company issued Class 19 CB for $ 17,131 million, accruing interest at a variable Badlar rate plus an applicable 1% annual negative margin and maturing on February 28, 2025. Subsequently, on March 26, 2024, the Company issued Class 20 CB for US$ 55.2 million, accruing interest at a fixed 6% rate and maturing on March 26, 2026 and on May 14, 2024, it reopened Class 20 CB for an additional US$ 52.5 million at a US$ 1.0079 issuance price.

Finally, on June 27, 2024, Pampa redeemed all Class 15 CB for a total amount of $ 18,264 million.

 

12.5.3 Bank loans

During the period ended June 30, 2024, the Company canceled: (i) net short-term financing for $ 21,600 million; and (ii) net import financing for US$ 16 million. Additionally, the Company borrowed US$ 164 million from local banking institutions and completed the repayment of the FINNVERA loan for US$ 4 million. Post-closing, the Company repaid financing for US$ 21.6 million and obtained net import financing for US$ 2.4 million.

   
 47 
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2024, presented on comparative basis.

(In millions of Argentine Pesos (“$”))

 

NOTE 12: (Continuation)

12.6Trade and other payables

 

  Note   06.30.2024   12.31.2023
Non-Current          
Customer guarantees     22   19
Trade payables     22   19
         
Compensation agreements      20,176   22,264
Finance leases liability     12,356   11,686
Contractual penalty debt     2,473   2,959
Other     512   373
Other payables     35,517   37,282
Total non-current     35,539   37,301
           
Current          
Suppliers     144,444   150,402
Customer advances     18,403   7,138
Related parties 16   26,845   11,808
Trade payables     189,692   169,348
           
Compensation agreements      8,709   8,686
Liability for acquisition of companies     -   6,844
Finance leases liability     3,318   2,923
Contractual penalty debt     1,484   1,315
Various creditors     5,784   2,484
Other     2,333   200
Other payables     21,628   22,452
           
Total current     211,320   191,800

 

 

Due to the short-term nature of trade and other payables, its book value is not considered to differ from its fair value. For most other non-current liabilities, fair values do not significantly differ from book values.

   
 48 
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2024, presented on comparative basis.

(In millions of Argentine Pesos (“$”))

 

NOTE 12: (Continuation)

12.7Fair value of financial instruments

The following table shows the Company’s financial assets and liabilities measured at fair value as of June 30, 2024 and December 31, 2023:

As of June 30, 2024   Level 1   Level 2   Level 3   Total
Assets                
Financial assets at fair value through
profit and losss		                
Government securities   486,307   -   -   486,307
Corporate bonds   52,331   -   -   52,331
Mutual funds   2,489   -   -   2,489
Shares   61,214   -   24,857   86,071
Cash and cash equivalents                
Mutual funds   120,368   -   -   120,368
Derivative financial instruments   -   100   -   100
Other receivables                
Guarantee deposits on derivative financial instruments   3,960   -   -   3,960
Total assets   726,669   100   24,857   751,626
                 
Liabilities                
Derivative financial instruments   -   112   -   112
Total liabilities   -   112   -   112

 

As of December 31, 2023   Level 1   Level 2   Level 3   Total
Assets                
Financial assets at fair value through
profit and losss		                
Government securities   313,964   -   -   313,964
Corporate bonds   64,125   -   -   64,125
Mutual funds   2,653   -   -   2,653
Shares   71,141   -   28,040   99,181
Cash and cash equivalents                
Mutual funds   112,996   -   -   112,996
Derivative financial instruments   -   250   -   250
Other receivables                
Guarantee deposits on derivative financial instruments   5,764   -   -   5,764
Total assets   570,643   250   28,040   598,933
                 
Liabilities                
Derivative financial instruments   -   191   -   191
Total liabilities   -   191   -   191

 

 

   
 49 
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2024, presented on comparative basis.

(In millions of Argentine Pesos (“$”))

 

NOTE 12: (Continuation)

The techniques used for the measurement of assets and liabilities at fair value through profit and loss, classified as Level 2 and 3, are detailed below:

-Derivative Financial Instruments: calculated from variations between market prices at the closing date of the period, and the amount at the time of the contract.
-Shares: it was determined using the income-based approach through the “Indirect Cash Flow” method, that is, the net present value of expected future cash flows, through the collection of dividends taking into consideration the direct 2.84% and 3.19% stakes and the 2.18% and 2.46% additional stakes through HIDISA and HINISA, in TJSM and TMB, respectively and a 17.7% discount rate. The used projections were prepared based on estimates on the future behavior of certain sensitive variables, including: (i) the dividend distribution policy; (ii) reference prices for energy sold in the spot market; (iii) projections on the power plants’ availability and dispatch; (iv) the evolution of structural costs and expenses; and (v) macroeconomic variables such as inflation and exchange rates, etc.

NOTE 13: EQUITY COMPONENTS

13.1Share Capital

As of June 30, 2024, the capital stock amounts to $ 1,364 million, including $ 4 million of treasury shares.

To comply with the provisions established by the CNV, the breakdown of the translation differences originated in the share capital and capital adjustment accounts is detailed below:

 

    06.30.2024
    Share capital   Share capital adjustment
At the beginning of the year 27,854   145,729
Variation of the period 3,742   19,578
At the end of the period 31,596   165,307
         
    12.31.2023
    Share capital   Share capital adjustment
At the beginning of the year 5,117   26,760
Variation of the year 22,737   118,969
At the end of the year 27,854   145,729

 

 

   
 50 
Free translation from the original prepared in Spanish for publication in Argentina
 
 

NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2024, presented on comparative basis.

(In millions of Argentine Pesos (“$”))

 

NOTE 13: (Continuation)

13.2Earning per share

Basic earnings per share are calculated by dividing the result attributable to the Company’s equity holders by the weighted average of outstanding common shares during the year. Diluted earnings per share are calculated by adjusting the weighted average of outstanding common shares to reflect the conversion of all dilutive potential common shares.

Potential common shares will be deemed dilutive only when their conversion into common shares may reduce the earnings per share or increase losses per share of the continuing business. Potential common shares will be deemed anti-dilutive when their conversion into common shares may result in an increase in the earnings per share or a decrease in the losses per share of the continuing operations.

The calculation of diluted earnings per share does not entail a conversion, the exercise or another issuance of shares which may have an anti-dilutive effect on the losses per share, and where the option exercise price is higher than the average price of ordinary shares during the period, no dilutive effect is recorded, being the diluted earning per share equal to the basic. As of June 30, 2024 and 2023, the Company does not hold any significant potential dilutive shares, therefore there are no differences with the basic earnings per share.

 

    06.30.2024   06.30.2023
Earning attributable to equity holders of the Company    313,160   69,097
Weighted average amount of outstanding shares   1,360   1,372
Basic and diluted earnings per share   230.26   50.36

 

 

   
 51 
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2024, presented on comparative basis.

(In millions of Argentine Pesos (“$”))

 

NOTE 14: STATEMENT OF CASH FLOWS’ COMPLEMENTARY INFORMATION

14.1Adjustments to reconcilie net profit to cash flows from operating activities

 

  Note   06.30.2024   06.30.2023
Income tax 10.6   (121,166)   7,087
Accrued interest     44,333   31,957
Depreciations and amortizations 9, 10.1 and 10.2   131,965   26,881
Share of profit of joint ventures and associates 5.2.2   (31,894)   (8,570)
Profit from sale of companies´ interest     (5,765)   -
Results for property, plant and equipment sale and derecognition 10.4   7   (56)
Impairment of intangible assets and inventories     142   323
Impairment of financial assets     49,592   299
Result from present value measurement 10.5   3,399   1,030
Changes in the fair value of financial instruments     (75,509)   (37,712)
Exchange differences, net     5,035   (14,827)
Result from repurchase of CB 10.5   8,114   (72)
Costs of concessions agreements completion 10.4   2,539   1,036
Contractual indemnity 10.4   -   (1,360)
Contractual penalty 10.4   -   1,360
Provision for contingecies, net 10.4   23,172   507
Provision for environmental remediation 10.4   806   345
Accrual of defined benefit plans 9 and 10.2   12,797   3,642
Compensation agreements  10.2   6,242   3,573
Derecognition of unproductive wells  10.3   -   1,702
Other     (864)   (376)
Adjustments to reconcile net profit to cash flows from operating activities     52,945   16,769

 

 

 

   
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2024, presented on comparative basis.

(In millions of Argentine Pesos (“$”))

 

NOTE 14: (Continuation)

14.2Changes in operating assets and liabilities

 

      06.30.2024   06.30.2023
Increase in trade receivables and other receivables     (369,488)   (4,187)
Increase in inventories     (24,392)   (5,005)
Increase (Decrease) in trade payables and other payables     71,280   (1,678)
Increase (Decrease) in salaries and social security payables     3,122   (291)
Defined benefit plans payments     (1,074)   (280)
Increase in tax liabilities     26,664   2,664
Decrease in provisions     (916)   (917)
Income tax payment     -   (14)
Collection (Payments) for derivative financial instruments, net     150   (774)
Changes in operating assets and liabilities     (294,654)   (10,482)

 

14.3Significant non-cash transactions

 

      06.30.2024   06.30.2023
           
Acquisition of property, plant and equipment through an increase in trade payables     (42,655)   (16,276)
Borrowing costs capitalized in property, plant and equipment     (5,947)   (1,570)
Increase in asset retirement obligation and wind turbines decommision through property, plant and equipment   -   (885)
Receivables for acquisition of subsidiary     -   1,182
Compensation trade receivables through an increase in financial assets at fair value through profit and loss   (47,000)   -

 

 

   
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2024, presented on comparative basis.

(In millions of Argentine Pesos (“$”))

 

NOTE 15: CONTINGENT LIABILITIES AND ASSETS

The main changes for the six-month period ended June 30, 2024 regarding contingent liabilities and assets disclosed in the Consolidated Financial Statements as of December 31, 2023 are detailed below:

15.1 Environmental claims

A neighbor of the town of Ingeniero White claims economic compensation from the Company, three other companies, the Puerto de Bahía Blanca Consortium and the Municipality of Bahía Blanca for the alleged damage to his property caused by the vibration generated by the defendant companies over the course of their activities and the poor control by the Municipality. The proceeding is in the answer stage.

In the complaint brought by a neighbor of the Province of Buenos Aires against the Company seeking the removal of three fuel storage tanks and pumps and the remediation and regeneration of soils where such tanks are located in view of potential environmental damage, arguments were filed, and the proceeding is set for judgment.

The owners of a lot in the city of Rosario (Province of Santa Fe) where there used to be a service station operated by a third party selling fuels under Petrobras branding seek the remediation and regeneration of soils by the Company due to the potential property damage. The proceeding is in the service of process stage.

 

15.2 Administrative claims

In the case initiated by the Company against the Federal Government to claim the amount owed, plus interest, for the debt undertaken by it during the term of validity of PEN Executive Order No. 1,053/18, the Federal Government made an appearance and answered the complaint.

 

15.3 Civil and Commercial Claims 

In the arbitration proceeding brought by the Company against High Luck Group Limited - Argentina branch as a result of certain breaches of the Participation Assignment Agreement and the Joint Operating Agreement for the Chirete Block, the parties have filed their closing arguments.

 

   
 54 
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2024, presented on comparative basis.

(In millions of Argentine Pesos (“$”))

 

NOTE 16: RELATED PARTIES´ BALANCES AND TRANSACTIONS

16.1 Balances with related parties

As of June 30, 2024   Trade receivables   Other receivables   Trade  payables
  Current   Non Current   Current   Current
Associates and joint ventures                
CTB   152   -   -   -
TGS   8,763   7,144   6,121   10,479
Transener   30   -   63   16
Other related parties                
SACDE   37   -   51   16,350
Other   -   -   513   -
    8,982   7,144   6,748   26,845

 

As of December 31, 2023   Trade receivables   Other receivables   Trade  payables
  Current   Non Current   Current   Current
Associates and joint ventures                
CTB   571   -   -   -
TGS   3,006   9,040   5,218   5,992
Transener   15   -   85   14
Other related parties                
SACDE   290   -   42   5,802
Other   -   -   455   -
    3,882   9,040   5,800   11,808

 

 

   
 55 
Free translation from the original prepared in Spanish for publication in Argentina
 
 

NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2024, presented on comparative basis.

(In millions of Argentine Pesos (“$”))

 

NOTE 16: (Continuation)

16.2 Operations with related parties

 

Operations for the  six-month period  

Sales of goods and

services (1)

  

Purchases of goods and

services (2)

   Fees for services (3)   Other operating income (expenses), net (4)
  2024   2023   2024   2023   2024   2023   2024   2023
Associates and joint ventures                                
CTB   691   236   -   -   -   -   -   -
TGS    22,685   5,223   (29,229)   (5,064)   -   -   -   -
Transener   -   -   (23)   (13)   -   -   176   43
                                 
Other related parties                                
Fundación   -   -   -   -   -   -   (632)   (223)
SACDE    -   -   (55,988)   (5,820)   (125)   -   152   28
Salaverri, Dellatorre, Burgio & Wetzler    -   -   -   -   (49)   (74)   -   -
Other   -   -   (1)   (16)   -   -   -   -
    23,376   5,459   (85,241)   (10,913)   (174)   (74)   (304)   (152)

 

(1)Correspond mainly to advisory services provided in relation with technical assistance and sales of gas.
(2)Correspond to natural gas transportation services, purchases of refined products and other services imputed to cost of sales for $ 29,253 million and $ 5,093 million and infrastructure works contracted to SACDE charged in property, plant and equipment for $ 55,988 million and $ 5,820 million, of which $ 11,198 million and $ 1,222 million, correspond to fees and general expenses calculated on the costs incurred by SACDE and/or Pampa to carry the works out for the six-month periods ended June 30, 2024 and 2023, respectively.
(3)Disclosed within administrative expenses.
(4)Correspond mainly to donations expenses and operating leases income.

 

Operations for the  six-month period   Financial income (1)   Financial expenses (2)   Dividends received    Payment of dividends
  2024   2023   2024   2023   2024   2023   2024   2023
Associates and joint ventures                                
OCP   -   -   -   -   6,955   -   -   -
TGS    558   188   -   -   -   -   -   -
Transener   8   -   -   -   -   -   -   -
                                 
Other related parties                                
EMESA   -   -   -   -   -   -   -   (139)
Other   -   -   (3)   (6)   -   -   (37)   -
    566   188   (3)   (6)   6,955   -   (37)   (139)

  

(1)Correspond mainly to financial leases and accrued interest on loans granted.
(2)Correspond to interest and commissions on loans received.
   
 56 
Free translation from the original prepared in Spanish for publication in Argentina
 
 

NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2024, presented on comparative basis.

(In millions of Argentine Pesos (“$”))

 

NOTE 17: ASSETS AND LIABILITIES IN CURRENCIES OTHER THAN PESOS (1)

 

  Type   Amount in currencies other than pesos   Exchange rate (2)   Total
06.30.2024		   Total
12.31.2023
       
ASSETS                  
                 
NON-CURRENT ASSETS                  
Financial assets at fair value through profit and loss US$     2.1   912.00    1,895   -
Other receivables US$   14.2   912.00     12,969     13,045
Total non-current assets               14,864     13,045
                 
CURRENT ASSETS                  
Financial assets at fair value through profit and loss US$    560.9   912.00   511,518   390,799
U$   -   22.81   -     1
Financial assets at amortized cost US$    101.7   912.00     92,708     84,749
Derivative financial instruments US$     0.1   912.00   90    229
Trade and other receivables US$    130.2   912.00   118,701   133,422
  CLP    1,852.0   0.97    1,793    1,021
Cash and cash equivalents US$    144.0   912.00   131,316     79,692
  CLP     3.5   0.97     3     1
  EUR     0.0   978.67     1     1
Total current assets             856,130   689,915
Total assets             870,994   702,960
                   
LIABILITIES                  
                   
NON-CURRENT LIABILITIES                  
Provisions US$    163.1   912.00   148,770   112,738
Borrowings US$    1,334.8   912.00   1,217,319   989,182
Trade and other payables US$   38.4   912.00     35,027     33,334
Total non-current liabilities              1,401,116   1,135,254
                   
CURRENT LIABILITIES                  
Provisions US$     5.2   912.00    4,766    3,691
Tax liabilities US$    0.002   912.00     2     2
  CLP     531.46   0.97    515    777
Salaries and social security payable  US$   0.03   912.00   26   20
Derivative financial instruments US$   0.12   912.00    110    189
Borrowings US$    243.5   912.00   222,030   117,493
  CNY   13.2   125.49    1,656    4,388
Trade and other payables US$    130.1   912.00   118,662   154,698
  EUR     3.6   978.67    3,487    1,959
  CNY     8.3   125.49    1,038    1,045
  SEK   23.1   86.09    1,987    321
  GBP     0.0   1152.77   23   -
  U$   0.24   22.81     5     2
Total current liabilities              354,307   284,585
Total liabilities              1,755,423   1,419,839
Net Position Liability               (884,429)     (716,879)

 

(1)Information presented to comply with CNV Rules.
(2)Exchange rate in force on June 30, 2024 according to the BNA for U.S. dollars (US$), Euros (EUR), Yuans R. China (CNY), Chilean pesos (CLP), Swedish crowns (SEK), Pounds sterling (GBP) and Uruguayan pesos (U$).
   
 57 
Free translation from the original prepared in Spanish for publication in Argentina
 
 

NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2024, presented on comparative basis.

(In millions of Argentine Pesos (“$”))

 

NOTE 18: INVESTMENT COMMITMENTS

New generation projects

PEPE VI

On May 29, 2024, SE Resolution No. 82/24 was published, which authorized the private use of the PEPE VI interconnection line; afterwards, progress was made in obtaining access to the transmission capacity made public through ENRE Resolution No. 384/24. No objections were filed and, therefore, access was granted under the terms of the Resolution. During the month of July 2024, 10 wind turbines for 45 MW were commissioned. 

NOTE 19: TERMINATION OF HYDROELECTRIC CONCESSIONS

On January 17, 2024, through SE Resolution No. 2/24, a new extension was granted to the Alicurá, El Chocón, Arroyito, Cerros Colorados and Piedra del Águila hydroelectric concessions for 60 calendar days at the end of the previous extensions (provided by SE Resolution No. 574/23 and 815/23), ENARSA maintaining its role as overseer. On March 18, 2024, through SE Resolution No. 33/24, the transition period was extended for 60 calendar days, effective from March 19, 2024 for the Alicurá, El Chocón, Arroyito and Cerros Colorados hydroelectric plant concessions and from April 28, 2024 for the Piedra del Águila concession.

Additionally, through Executive Orders No. 1,021/24 and 1,085/24, the Province of Mendoza established a 12-month transition period for HINISA’s concession as from June 1, 2024, the concession contract’s expiration date, allowing the exploitation of the water resource during such period. It was also established that the Undersecretary of Energy and Mining would exercise control activities over such period. Moreover, SE Resolution No. 98/24 reduced the concession contract’s transition period to 6 months, extendable for a like period.

   
 58 
Free translation from the original prepared in Spanish for publication in Argentina
 
 

NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2024, presented on comparative basis.

(In millions of Argentine Pesos (“$”))

 

NOTE 20: DOCUMENTATION SAFEKEEPING

On August 14, 2014, the CNV issued General Resolution No. 629/14, which introduced modifications to the provisions applicable to the keeping and conservation of corporate and accounting books and commercial documentation. To such effect, the Company have sent non-sensitive work papers and information corresponding to the periods not covered by the statute of limitations for their keeping in the AdeA - Administración de Archivos S.A.’s data warehouse located at Ruta 36, km 34.5, Florencio Varela, Provincia de Buenos Aires and in the Iron Mountain Argentina S.A.’s data warehouses located at the following addresses:

-Azara 1245 – C.A.B.A.
-Don Pedro de Mendoza 2163 –C.A.B.A.
-Amancio Alcorta 2482 C.A.B.A.
-San Miguel de Tucumán 601, Carlos Spegazzini, Municipality of Ezeiza, Province of Buenos Aires.

A list of the documentation delivered for storage, as well as the documentation provided for in Article 5.a.3) Section I, Chapter V, Title II of the PROVISIONS (2013 regulatory provisions and amending rules), is available at the Company headquarters.

NOTE 21: SUBSEQUENT EVENTS

Pursuant to SE Resolution No. 193/24 dated August 1, 2024, spot generation remuneration values were updated, providing for a 3% increase over the values approved by SE Resolution No. 99/24 as from the August 2024 economic transaction.

 

 

   
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