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 SEPTEMBER 30, 2024

AND FOR THE NINE 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
CSJN   Argentina´s Supreme Court of Justice
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.
ICC   International Chamber of Commerce
IAS   International Accounting Standards
IASB   International Accounting Standards Board

 
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GLOSSARY OF TERMS: (Continuation)

 

Terms   Definitions
IFRS   International Financial Reporting Standards
INDEC   National Institute of Statistics and Censuses
IPIM   Wholesale Domestic Price Index
LGS   Argentine Business Organizations Law
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.
PIST   Point of Entry to the Transport System
POSA   Petrobras Operaciones S.A.
SACDE   Sociedad Argentina de Construcción y Desarrollo Estratégico S.A.
SADI   Argentine Electricity Grid (Sistema Argentino de Interconexión)
SCEyM   Secretary for the Coordination of Energy and Mining
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

 
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GLOSSARY OF TERMS: (Continuation)

 

Terms   Definitions
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 nine and three-month periods ended September 30, 2024, presented on comparative basis.

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

 

 

      Nine-month   Three-month
  Note   09.30.2024   09.30.2023   09.30.2024   09.30.2023
                   
Revenue 8   1,294,494   346,957   510,706   152,701
Cost of sales 9   (831,719)   (209,953)   (344,291)   (92,014)
Gross profit     462,775   137,004   166,415   60,687
                   
Selling expenses 10.1   (51,380)   (13,333)   (19,798)   (5,610)
Administrative expenses 10.2   (124,840)   (34,629)   (53,166)   (14,427)
Exploration expenses 10.3   (256)   (1,772)   (89)   (22)
Other operating income 10.4   102,716   31,627   31,935   17,338
Other operating expenses 10.4   (63,966)   (18,079)   (20,912)   (10,704)
Impairment  of property, plant and equipment, intangible assets and inventories     (18,578)   (324)   (18,436)   (1)
Impairment of financial assets     (48,912)   (415)   680   (116)
Share of profit from associates and joint ventures 5.2.2   94,331   14,044   62,437   5,474
Profit from sale of companies´ interest           5,765   486   -   486
Operating income     357,655   114,609   149,066   53,105
                   
Financial income 10.5   4,095   1,090   2,086   662
Financial costs 10.5   (120,932)   (71,096)   (39,244)   (30,018)
Other financial results 10.5   99,806   95,794   36,945   40,333
Financial results, net     (17,031)   25,788   (213)   10,977
Profit before income tax     340,624   140,397   148,853   64,082
Income tax 10.6   111,715   (20,437)   (9,451)   (13,350)
Profit of the period     452,339   119,960   139,402   50,732
                   
Other comprehensive income                  
Items that will not be reclassified to profit or loss                  
Exchange differences on translation     552,038   437,248   185,461   243,988
Items that may be reclassified to profit or loss                  
Exchange differences on translation     144,953   3,930   25,084   56
Other comprehensive income of the period     696,991   441,178   210,545   244,044
Total comprehensive income of the period     1,149,330   561,138   349,947   294,776

 

 

 

 
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UNAUDITED CONSOLIDATED CONDENSED INTERIM

STATEMENT OF COMPREHENSIVE INCOME (Continuation)

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

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

 

 

 

      Nine-month   Three-month
  Note   09.30.2024   09.30.2023   09.30.2024   09.30.2023
Total profit (loss) of the period attributable to:                  
                   
Owners of the company     452,630   119,708   139,470   50,611
Non-controlling interest     (291)   252   (68)   121
      452,339   119,960   139,402   50,732
                   
                   
Total comprehensive income of the period attributable to:                  
                   
Owners of the Company     1,148,086   559,794   349,455   294,062
Non-controlling interest     1,244   1,344   492   714
      1,149,330   561,138   349,947   294,776
                   
Earnings per share attributable to equity holders of the Company                  
                   
Total basic and diluted earning per share 13.2   332.82   87.51        

 

 

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 September 30, 2024, presented on comparative basis.

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

 

  Note   09.30.2024   12.31.2023
ASSETS          
NON-CURRENT ASSETS          
Property, plant and equipment 11.1   2,499,436   2,056,974
Intangible assets 11.2   94,114   77,898
Right-of-use assets     12,153   17,259
Deferred tax asset 11.3   101,466   2
Investments in associates and joint ventures 5.2.2   918,879   542,978
Financial assets at fair value through profit and loss 12.2   26,451   28,040
Other assets     1,722   349
Trade and other receivables 12.3   43,103   14,524
Total non-current assets     3,697,324   2,738,024
           
CURRENT ASSETS          
Inventories 11.4   231,400   166,023
Financial assets at amortized cost 12.1   77,881   84,749
Financial assets at fair value through profit and loss 12.2   750,900   451,883
Derivative financial instruments     108   250
Trade and other receivables 12.3   598,582   238,294
Cash and cash equivalents 12.4   322,011   137,973
Total current assets     1,980,882   1,079,172
Assets classified as held for sale     13,357   -
Total assets     5,691,563   3,817,196

 

 

 
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UNAUDITED CONSOLIDATED CONDENSED INTERIM STATEMENT

OF FINANCIAL POSITION (Continuation)

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

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

 

  Note   09.30.2024   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     43,838   37,057
Voluntary reserve     1,606,862   1,157,389
Other reserves     1,544   711
Other comprehensive income     798,629   539,702
Retained earnings      613,532   180,627
Equity attributable to owners of the company     3,092,655   1,943,736
Non-controlling interest     8,167   6,960
Total equity     3,100,822   1,950,696
           
LIABILITIES          
NON-CURRENT LIABILITIES          
Provisions 11.5   183,254   119,863
Income tax and minimum notional income tax provision 11.6   71,282   44,614
Deferred tax liability 11.3   48,121   240,686
Defined benefit plans     40,976   13,172
Borrowings 12.5   1,368,963   989,182
Trade and other payables 12.6   49,286   37,301
Total non-current liabilities      1,761,882   1,444,818
           
CURRENT LIABILITIES          
Provisions 11.5   8,720   4,649
Income tax liability 11.6   199,094   14,026
Tax liabilities     47,984   11,427
Defined benefit plans     12,148   2,695
Salaries and social security payable      29,187   15,537
Derivative financial instruments     2   191
Borrowings 12.5   305,312   181,357
Trade and other payables 12.6   225,170   191,800
Total current liabilities      827,617   421,682
Liabilities associated to assets classified as held for sale     1,242   -
Total liabilities      2,590,741   1,866,500
Total liabilities and equity     5,691,563   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 nine-month period ended September 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 -   -   -   -   -   -   -   -   500   -   -   500   -   500
Dividens ditribution -   -   -   -   -   -   -   -   -   -   -   -   (103)   (103)
Profit for the nine-month period -   -   -   -   -   -   -   -   -   -   119,708   119,708   252   119,960
Other comprehensive income for the nine-month period -   -   -   -   -   -   7,920   247,173   -   142,781   42,212   440,086   1,092   441,178
Balance as of September 30, 2023 1,360   7,126   19,950   4   21   (211)   16,041   500,993   52   256,501   161,920   963,757   2,398   966,155
                                                       
Stock compensation plans -   -   -   -   -   -   -   -   659   -   -   659   -   659
Dividens ditribution -   -   -   -   -   -   -   -   -   -   -   -   (325)   (325)
(Loss) Profit for the complementary three-month period -   -   -   -   -   -   -   -   -   -   (85,220)   (85,220)   1,951   (83,269)
Other comprehensive income for the complementary three-month period -   -   -   -   -   -   21,016   656,396   -   283,201   103,927   1,064,540   2,936   1,067,476
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 -   -   -   -   -   -   -   -   833   -   -   833   -   833
Dividens ditribution -   -   -   -   -   -   -   -   -   -   -   -   (37)   (37)
Profit (Loss) for the nine-month period -   -   -   -   -   -   -   -   -   -   452,630   452,630   (291)   452,339
Other comprehensive income for the nine-month period -   -   -   -   -   -   7,320   268,307   -   258,927   160,902   695,456   1,535   696,991
Balance as of September 30, 2024 1,360   7,126   19,950   4   21   (211)   43,838   1,606,862   1,544   798,629   613,532   3,092,655   8,167   3,100,822

 

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 nine-month period ended September 30, 2024, presented on comparative basis.

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

 

 

  Note   09.30.2024   09.30.2023
Cash flows from operating activities:          
Profit of the period     452,339   119,960
Adjustments to reconcile net profit to cash flows from operating activities 14.1   136,816   47,128
Changes in operating assets and liabilities 14.2   (355,876)   (40,440)
Net cash generated by operating activities     233,279   126,648
           
Cash flows from investing activities:          
Payment for property, plant and equipment acquisitions     (299,585)   (128,619)
Payment for purchases of public securities and shares acquisitions, net     (26,431)   (2,420)
(Suscription) Recovery of mutual funds, net     (887)   4,682
Payment for companies´acquisitions     (42,642)   -
Payment for right-of-use     (52)   -
Collection for equity interests in companies sales     16,538   12,655
Collection for joint ventures´ share repurchases      30,135   -
Collections for property, plant and equipment sales     331   77
Collections for intangible assets sales     -   1,626
Dividends collection     6,955   2
Financial assets´ dividends collection     1,121   -
Cash addition for purchase of subsidiary     67,447   -
Loans granted, net     (115)   (1,448)
Net cash used in investing activities     (247,185)   (113,445)
           
Cash flows from financing activities:          
Proceeds from borrowings 12.5   653,462   98,835
Payment of  borrowings 12.5   (108,478)   (30,438)
Payment of  borrowings interests 12.5   (104,058)   (51,886)
Repurchase and redemption of corporate bonds 12.5   (285,489)   (1,335)
Payments of leases     (2,444)   (311)
Dividends payment     (37)   (139)
Net cash generated by financing activities     152,956   14,726
           
Increase in cash and cash equivalents     139,050   27,929
           
Cash and cash equivalents at the beginning of the year 12.4   137,973   18,757
Exchange and conversion difference generated by cash and cash equivalents     44,988   17,431
Increase in cash and cash equivalents     139,050   27,929
Cash and cash equivalents at the end of the period 12.4   322,011   64,117

 

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 nine-month period ended September 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 5,426 MW installed capacity as of September 30, 2024, which represents approximately 13% 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 45 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 13.4 million m3/day of natural gas and 5.0 thousand boe/day of oil in Argentina, during the nine-month period ended September 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 94% and 100%.

Finally, through the holding, transportation and others, 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 22,396 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 100% 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 nine-month period ended September 30, 2024, presented on comparative basis.

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

 

NOTE 2: REGULATORY FRAMEWORK

2.1Generation

 

2.1.1 Supply Agreements with CAMMESA

"TerCONF" call for tenders

SE Resolution No. 151/24 rendered ineffective the awarding of SE Resolution No. 961/23 under the TerCONF call for tenders, including the projects for the execution of CTGEBA II for a 300 MW power capacity, and the expansion of CTEB’s CC for 11 MW, through CTB.

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.

Additionally, SE Resolutions No. 193/24, No. 233/24 and No. 285/24, and SCEyM Resolution No. 20/24 provided for new 3%, 5%, 2.7% and 6% increases as from the August, September, October and November 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. 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 CAMMESA’s receivables 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 nine-month period ended September 30, 2024, presented on comparative basis.

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

 

NOTE 2: (Continuation)

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.

2.1.6 Contingency and Forecast Plan for energy supply in critical months

Through Resolution No. 294/24, the SE established a “Contingency and Forecast Plan for critical months of the 2024/2026 period” aiming to avoid, reduce or mitigate the critical energy supply status for critical days of the 2024/2026 period.

The plan identifies different measures for the different industry segments.

Regarding electricity generation, an opt-in scheme is incorporated recognizing an additional, complementary and exceptional remuneration based on available power capacity and generation to promote the thermal generation plants’ availability in critical months and hours, effective from December 2024 to March 2026. This additional remuneration may be extended by the SE’s Undersecretariat of Electric Power for an additional 12-month period subject to the presentation of a maintenance program for each generating unit.

 
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the nine-month period ended September 30, 2024, presented on comparative basis.

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

 

NOTE 2: (Continuation)

The planned remuneration scheme implies (i) a US$ 2,000/MW-month remuneration for power capacity, adjusted by a criticality factor that considers the node where the generation unit is located, and by the unit’s actual availability in the most critical hours and 50% of such remuneration for the power capacity exceeding the committed capacity; and (ii) a remuneration for the energy generated in the most critical days and hours, also adjusted by the criticality factor, ranging from US$ 3.4/MWh to US$ 10.5/MWh depending on the fuel used and the generation technology.

Additionally, CAMMESA will implement an exceptional dispatch procedure allowing for the strategic use of power generation units to reduce supply restriction risks during periods of higher electricity consumption. This procedure may include reserving the dispatch of the remaining operating hours of units nearing the end of their useful life to leverage their use during the SADI’s peak demand times.

The opt-in period finishes on November 22, 2024 and, as of the date of issuance of these Consolidated Condensed Interim Financial Statements, the Company is analyzing the possible participation of the eligible thermal generation units.

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.

 
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the nine-month period ended September 30, 2024, presented on comparative basis.

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

 

NOTE 2: (Continuation)

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.

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.). The Company received $ 2,884 million in cash and Bonds for $ 4,534 million FV (US$ 4.8 million) and recorded a $ 1,763 million (US$ 1.9 million) impairment in the related receivables, considering the market value of the instruments maturing in 2038 received under the described cancellation methodology.

Price at the PIST

SE Resolutions No. 93/24, No. 232/24 and No. 284/24, and SCEyM Resolution No. 18/24, established the PIST price to be passed on to end users pursuant to the agreements entered into under Plan GasAr for gas consumptions made as from the months of June, September, October and November 2024, respectively, and on the effective date of the tariff schemes published by ENARGAS.

It is worth highlighting that PIST value updates increase the amount collectible by the Company directly from distributors, decreasing the price compensation payable by the Federal Government under Plan GasAr.

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.

 
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the nine-month period ended September 30, 2024, presented on comparative basis.

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

 

NOTE 2: (Continuation)

However, on May 9, June 5 and July 1, 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, June and July 2024, maintaining tariff schemes in force as from April 3, 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.

Subsequently, effective from August 1, September 2, October 1 and November 4, 2024, ENARGAS published new transitional tariff, with increases of 4%, 1%, 2.7% and 3.5% respectively, 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.

The public hearing, called under ENARGAS Resolution No. 593/24, was held on October 21, 2024. As of the date of issuance of these Consolidated Condensed Interim Financial Statements, ENARGAS’ comptroller has not issued the above-mentioned recommendation report.

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, May 11 and July 2, 2024 the ENRE informed Transener S.A. and Transba S.A. of the suspension of the tariff update planned for the months of May, June and July 2024, maintaining the values in force since February 19, 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.

 
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the nine-month period ended September 30, 2024, presented on comparative basis.

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

 

NOTE 2: (Continuation)

Later, ENRE Resolutions No. 512/24 and No. 513/24; No. 581/24 and No. 580/24; No. 696/24 and No. 692/24; and No. 901/24 and No. 902/24 determined the hourly remuneration values establishing increases of 6%, 6%, 2.7% and 6% as from August 1, September 1, October 1, and November 1, 2024, respect to the values in force 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 five-year term period 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. Likewise, the projected information on costs, investments and intended annual remuneration was sent to the ENRE on September 16, 2024.

On August 21, 2024, ENRE Resolution No. 554/24 set the high-voltage and main electricity distribution utility concessionaires’ return rate for the 2025-2029 period at 10.14% after taxes.

Finally, on October 3, 2024, ENRE Resolution No. 706/24 launched the procedure for determining the remuneration of independent transmission companies, including Transener S.A., as operator of the Fourth Line and the Choele Choel - Pto. Madryn Interconnection, and Transba S.A., for Transportista Independiente de Buenos Aires (TIBA)’s facilities. This remuneration will apply during the tariff period starting January 1, 2025, and the procedure contemplates the submission of information on costs, investments and remuneration sought by the independent transporters by November 20, 2024, including the supervising transporter’s opinion.

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. It is worth highlighting that, during the third quarter of 2024, the Company paid $ 232 million to regularize certain items under discussion with the tax authorities within the framework of the above-mentioned regularization regime.

 
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the nine-month period ended September 30, 2024, presented on comparative basis.

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

 

NOTE 2: (Continuation)

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.

NOTE 3: BASIS OF PREPARATION

These Consolidated Condensed Interim Financial Statements for the nine-month period ended September 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 November 6, 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 nine-month period ended September 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 nine-month period ended September 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 nine and three-month periods ended September 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.

 
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the nine-month period ended September 30, 2024, presented on comparative basis.

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

 

NOTE 4: (Continuation)

4.1 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.

4.2 New accounting standards, amendments and interpretations issued by the IASB not yet effective and not early adopted by the Company

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

As of September 30, 2024, the Company has not early applied the following standards and/or amendments:

-   IAS 21 - “Effects of Changes in Foreign Exchange Rates”: amended in August 2023. It incorporates the accounting treatment in the event of a lack of currency exchangeability, establishing the guidelines for estimating the spot exchange rate to reflect the rate at which each transaction would take place at the measurement date under the prevailing economic conditions. The amendments are applicable to fiscal years starting on or after January 1, 2025, allowing for early adoption. The Company estimates that its application will not impact the results of operations or the Company’s financial position; however, it continues to monitor the exchange rate environment.

-   IFRS 18 - “Presentation and Disclosures in Financial Statements”: issued in April 2024. It establishes new presentation and disclosure requirements aiming to ensure that financial statements provide relevant information that faithfully represents the entity’s situation. The standard does not affect the recognition or measurement of financial statement items; however, it introduces new requirements for improved comparability among entities. Specifically, the following are worth mentioning: (i) the classification of revenues and expenses into operating, investing and financing categories; (ii) the incorporation of required subtotals; and (iii) the disclosure of management-defined performance measures. The standard is applicable retroactively to fiscal years and interim periods beginning on or after January 1, 2027, allowing for early adoption. The application of the standard will not have an impact on the Company’s results of operations or financial position.

 
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the nine-month period ended September 30, 2024, presented on comparative basis.

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

 

NOTE 4: (Continuation)

-   IFRS 19 - “Subsidiaries without Public Accountability: Disclosures”: issued in April 2024. It permits to application of reduced disclosures for entities without public accountability which are subsidiaries of an entity that produces consolidated financial statements available for public use that comply with IFRS accounting standards. The standard is applicable for periods beginning on or after January 1, 2027, allowing for early adoption. The application of the standard will not have an impact on the Company’s results of operations or financial position.

-   IFRS 9 and IFRS 7 - “Financial Instruments and Disclosures”: in May 2024, the application guidance for IFRS 9 is modified and disclosure requirements are incorporated into IFRS 7. In particular, it incorporates the option to consider the derecognition of a financial liability before its settlement date in case of issuance of electronic payment instructions meeting certain requirements, as well as disclosure requirements for investments in equity instruments designated at fair value through other comprehensive income and instruments at amortized cost or fair value through other comprehensive income. The amendments apply to fiscal years beginning on or after January 1, 2026, allowing for early adoption. The application of the standard will not have an impact on the Company’s results of operations or financial position.

-   IMPROVEMENTS TO IFRS - Volume 11: in July 2024, minor amendments are incorporated into IFRS 1, IFRS 7, IFRS 9, IFRS 10 and IAS 7. The amendments apply to fiscal years beginning on or after January 1, 2026, allowing for early adoption. The application of the amendments will not have an impact on the Company’s operating results or financial position.

 

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.

 
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the nine-month period ended September 30, 2024, presented on comparative basis.

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

 

NOTE 5: (Continuation)

As of the date of issuance of these Consolidated Condensed Interim Financial Statements, the Reorganization Proceeding has been approved by the CNV through Resolution RESFC-2024-22892-APN-DIR#CNV dated October 3, 2024 and is pending registration with the Argentine Public Registry of Organizations (Inspección General de Justicia).

 

5.2Interest in subsidiaries, associates and joint ventures

5.2.1Subsidiaries information

 

Unless otherwise indicated, the country is also the principal place where the subsidiary carries out its activities. 

            09.30.2024   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%
OCP (2)   Gran Cayman   Investment   100.00%   34.08%
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

(2) See note 5.2.3 

 

 
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the nine-month period ended September 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   09.30.2024   753   222,520   1,946,242   0.382%
                         
Joint ventures                    
CIESA (1)   Investment   09.30.2024   639   113,253   992,734   50.00%
Citelec (2)   Investment   09.30.2024   556   24,030   291,816   50.00%
CTB   Generation   09.30.2024   8,558   (54,952)   430,623   50.00%

 

(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 September 30, 2024, the quotation of TGS's ordinary shares and ADR published on the BCBA and the NYSE was $ 4,550.00 and US$ 18.34, respectively, granting to Pampa ownership an approximate stake market value of $ 935,640 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 September 30, 2024, Transener’s common share price listed at the BCBA was $ 1,850, conferring Pampa’s indirect interest an approximate $ 216,562 million market value.

 
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the nine-month period ended September 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:

    09.30.2024   12.31.2023
Disclosed in non-current assets        
Associates        
OCP (1)   -   18,513
TGS   9,674   10,997
Other   23   18
Total associates   9,697   29,528
Joint ventures        
CIESA   547,964   244,748
Citelec   145,908   66,466
CTB   215,310   202,236
Total joint ventures   909,182   513,450
Total associates and joint ventures   918,879   542,978

(1)See Note 5.2.3

 

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

 

    09.30.2024   09.30.2023
Associates        
OCP   -   143
TGS   1,143   870
Total associates   1,143   1,013
         
Joint ventures        
CIESA   54,929   7,255
Citelec    12,015   3,268
CTB   (27,475)   2,508
OCP   53,719   -
Total joint ventures   93,188   13,031
Total associates and joint ventures   94,331   14,044

 

 

 
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the nine-month period ended September 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:

    09.30.2024   09.30.2023
At the beginning of the year   542,978   159,833
Dividends   (6,955)   -
Increase   35,517   -
Share repurchase   (30,135)   -
Sale of equity interests   (15,802)   (7,807)
Decrease due to obtained control   (73,228)   -
Profit from sale of companies´ interest         5,765   -
Share of profit    94,331   14,044
Exchange differences on translation   366,408   159,388
At the end of the period   918,879   325,458

5.2.3 Investment in OCP

On January 16, 2024, the Company, through PEB, closed the transaction for the acquisition of shares representing an additional 29.66% stake in OCP under the purchase and sale agreement entered into with Repsol OCP de Ecuador S.A. for a price of US$ 15 million. The closing of the transaction implied recognizing profits for US$ 5 million under IAS 28 and obtaining joint control.

Subsequently, on August 30, 2024, the transaction for the acquisition by the Company, through PEB, of the shares representing the remaining 36.26% stake in OCP was closed under the purchase and sale agreement entered into with PetroOriental OCP Holdings Ltd. for a price of US$ 22.9 million. The Company thus indirectly obtains control with a 100% stake in OCP’s capital stock and votes.

On the acquisition date, the Company determined the preliminary fair values of the assets acquired and liabilities assumed as of August 30, 2024 and recognized $ 26,160 million (or US$ 27.4 million) profits to reflect the fair value of the 63.74% former equity interest in OCP and $ 3,680 million (US$ 3.8 million) profits from the acquisition as the transaction consisted of a business combination achieved in stages under IFRS 3.

The acquisition contributed to the group revenue for $ 12,631 million (US$ 13.1 million) and net profit for $ 5,493 million (US$ 5.7 million) for the August 31 - September 30, 2024 period.

If the acquisition had taken place on January 1, 2024, consolidated revenue and profit for the nine-month period ended September 30, 2024 would have been $ 1,400,984 million (US$ 1,552.7 million) and $ 484,526 million (US$ 546.8 million), respectively. The pro forma information was calculated based on the Company and OCP’s results.

 
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the nine-month period ended September 30, 2024, presented on comparative basis.

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

 

NOTE 5: (Continuation)

The Company paid $ 22,892 million (US$ 24 million) for the acquisition of the additional interest and added a $ 67,447 million (US$ 70.7 million) cash and cash equivalents, which is disclosed in the Consolidated Statement of Cash Flows under “Payment for acquisitions of companies” and “Cash addition for purchase of subsidiary” within investment activities.

It is worth highlighting that, pursuant to the terms of the concession’s Authorization Contract, the Company has provided an operational guarantee and an environmental guarantee for a total amount of US$ 100 million, including surety deposits for US$ 84 million, which are disclosed in the line Guarantee deposits under the item Other receivables in the Consolidated Condensed Interim Statement of Financial Position.

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 nine-month period ended September 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 OCPSA entered into an addendum to the Authorization Contract to extend the concession term until July 31, 2024.

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.

Later, the Ministry of Energy and Mines of Ecuador and OCPSA agreed to extend the transfer date and the term of the concession’s Authorization Contract until November 30, 2024.

On October 25, 2024, OCPSA was notified by the Vice Minister of Hydrocarbons of Ecuador of the Contract Termination on November 30, 2024 and, consequently, it was summoned to resume the proceeding for transferring the shares to the State.

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 profit from associates and joint ventures.

 
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the nine-month period ended September 30, 2024, presented on comparative basis.

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

 

NOTE 5: (Continuation)

5.2.5Investment in CIESA - TGS

Issuance and cancellation 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 2031 CB for US$ 490 million maturing on July 24, 2031 and accruing interest at an 8.50% rate, payable semiannually. The 2031 CB’s US$ 483.7 million net proceeds were used to make a purchase and cancellation tender offer for the 2018 CB.

As of the issuance of these Consolidated Condensed Interim Financial Statements, TGS and its subsidiaries are in compliance with the covenants established in their whole financial debt.

5.3Oil and gas participations

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

    09.30.2024   12.31.2023
         
       
Non-current assets              148,177                90,360
Current assets                10,338                  5,587
         
Total assets              158,515                95,947
         
Non-current Liabilities                48,837                13,371
Current Liabilities                28,203                23,084
         
Total liabilities                 77,040                36,455
         
         
    09.30.2024   09.30.2023
Production cost                64,589                16,849

 

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 nine-month period ended September 30, 2024, presented on comparative basis.

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

 

NOTE 5: (Continuation)

 

Assignment of interest in the Gobernador Ayala block

On September 13, 2024, following an offer received from a third party, Pluspetrol S.A. (operator) expressed its decision to exercise its preferential right under the joint operating agreement and acquire the Company’s undivided 22.51% interest in the rights and obligations of the hydrocarbon exploitation concession and the joint operating agreement on the Gobernador Ayala block.

As a result, as of September 30, 2024, the Company disclosed the related assets and liabilities as available for sale. It is worth highlighting that, during the third quarter of 2024, the participation in the Gobernador Ayala block contributed a production equivalent to just 1.2% of the Company’s total hydrocarbon production.

On October 21, 2024, the transaction was closed for a US$ 23 million base price, including an initial payment of US$ 9 million in cash and 4 installments payable semi-annually for the remaining balance.

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.

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.

 
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the nine-month period ended September 30, 2024, presented on comparative basis.

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

 

NOTE 6: (Continuation)

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.

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 did not record any impairment losses as a result of the detailed recoverability assessment, nor did it identify, as of September 30, 2024, any additional indications that could impact the assumptions considered in the above-mentioned assessment.

In addition, during the quarter ended September 30, 2024, given the Company’s strategy to focus its investments in the development and exploitation of its unconventional oil and gas reserves, and particularly to comply with the drilling, construction and facilities adequacy commitments in the Rincón de Aranda block, the Company determined the recoverable value of the oil and gas segment’s conventional CGUs as of September 30, 2024.

Cash flows were prepared based on estimates on the future behavior of key assumptions for determining the value in use, including the following: (i) the evolution of oil and gas prices; (ii) demand projections; (iii) costs evolution; (iv) macroeconomic variables such as inflation rates and exchange rates, among others; and (v) a 10.8% after-tax WACC.

The recoverability assessment resulted in the recognition of impairment losses for $ 18,536 million (US$ 19.1 million) in the El Tordillo/La Tapera block.

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 nine-month period ended September 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, Transportation and Others, mainly consisting of interests in joint businesses CITELEC, CIESA and the indirect stake in OCP, as well as their respective subsidiaries holding the concession over high-voltage electricity transmission and gas and crude oil transportation, respectively. It is worth highlighting that the results of the segment’s operations reflect the effects of the consolidation with OCP as from August 30, 2024; see Note 5.2.3.

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 nine-month period ended September 30, 2024, presented on comparative basis.

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

 

NOTE 7: (Continuation)

 

    in millions of US$   in millions of $
Consolidated profit and loss information for the nine-month period ended September 30, 2024   Generation   Oil and gas   Petrochemicals   Holding, Transportation and Others   Eliminations   Consolidated   Consolidated
Revenue - local market   502   429   247   29   -   1,207   1,086,342
Revenue - foreign market   3   84   147   -   -   234   208,152
Intersegment revenue   -   83   -   -   (83)   -   -
Cost of sales   (260)   (387)   (361)   (5)   83   (930)   (831,719)
Gross profit   245   209   33   24   -   511   462,775
                             
Selling expenses   (2)   (46)   (9)   -   -   (57)   (51,380)
Administrative expenses   (39)   (57)   (5)   (38)   -   (139)   (124,840)
Exploration expenses   -   -   -   -   -   -   (256)
Other operating income   34   67   11   4   -   116   102,716
Other operating expenses   (11)   (22)   (5)   (34)   -   (72)   (63,966)
Impairment of property, plant and equipment, intangible assets and inventories   -   (19)   -   -   -   (19)   (18,578)
Impairment of financial assets   (46)   (10)   -   -   -   (56)   (48,912)
Share of profit from associates and joint ventures   (28)   -   -   129   -   101   94,331
Profit from sale of companies´ interest   -   -   -   7   -   7   5,765
Operating income   153   122   25   92   -   392   357,655
                             
Financial income   3   1   -   -   -   4   4,095
Financial costs   (39)   (71)   (3)   (24)   -   (137)   (120,932)
Other financial results   102   (17)   4   25   -   114   99,806
Financial results, net   66   (87)   1   1   -   (19)   (17,031)
Profit before income tax   219   35   26   93   -   373   340,624
                             
Income tax   109   36   7   (12)   -   140   111,715
Profit of the period   328   71   33   81   -   513   452,339
                             
Depreciation and amortization   71   183   3   -   -   257   230,240

 

 

 
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the nine-month period ended September 30, 2024, presented on comparative basis.

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

 

NOTE 7: (Continuation)

 

    in millions of US$   in millions of $
Consolidated profit and loss information for the nine-month period ended September 30, 2024   Generation   Oil and gas   Petrochemicals   Holding, Transportation and Others   Eliminations   Consolidated   Consolidated
Total profit of the period attributable to:                            
Owners of the company   328   71   33   81   -   513   452,630
Non-controlling interest   -   -   -   -   -   -   (291)
                             
Consolidated financial position information as of September 30, 2024                            
Assets   2,837   1,755   186   1,110   (23)   5,865   5,691,563
Liabilities   713   1,349   170   460   (23)   2,669   2,590,741
                             
Net book values of property, plant and equipment    1,346   1,162   28   39   -   2,575   2,499,436
                             
Additional consolidated information as of September 30, 2024                            
Increases in property, plant and equipment, intangible assets and right-of-use assets   67   243   4   7   -   321   288,500

 

 

 

 
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the nine-month period ended September 30, 2024, presented on comparative basis.

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

 

NOTE 7: (Continuation)

 

    in millions of US$   in millions of $
Consolidated profit and loss information for the nine-month period ended September 30, 2023   Generation   Oil and gas   Petrochemicals   Holding, Transportation and Others   Eliminations   Consolidated   Consolidated
Revenue - local market   507   326   273   11   -   1,117   285,892
Revenue - foreign market   -   137   116   -   -   253   61,065
Intersegment revenue   -   85   -   -   (85)   -   -
Cost of sales   (275)   (319)   (341)   -   85   (850)   (209,953)
Gross profit   232   229   48   11   -   520   137,004
                             
Selling expenses   (1)   (38)   (12)   -   -   (51)   (13,333)
Administrative expenses   (38)   (56)   (5)   (34)   -   (133)   (34,629)
Exploration expenses   -   (7)   -   -   -   (7)   (1,772)
Other operating income   50   64   -   1   -   115   31,627
Other operating expenses   (24)   (26)   (2)   (16)   -   (68)   (18,079)
(Impairment) Recovery of impairment of intangible assets and inventories   -   -   (3)   2   -   (1)   (324)
Impairment of financial assets   -   -   -   (4)   -   (4)   (415)
Share of profit from associates and joint ventures   9   -   -   33   -   42   14,044
Profit from sale of companies´ interest         -   -   -   1   -   1   486
Operating income   228   166   26   (6)   -   414   114,609
                             
Financial income   2   2   -   5   (5)   4   1,090
Financial costs   (92)   (157)   (2)   (37)   5   (283)   (71,096)
Other financial results   221   7   7   157   -   392   95,794
Financial results, net   131   (148)   5   125   -   113   25,788
Profit before income tax   359   18   31   119   -   527   140,397
                             
Income tax   (48)   (2)   (5)   (14)   -   (69)   (20,437)
Profit of the period   311   16   26   105   -   458   119,960
                             
                             
Depreciation and amortization   74   125   4   -   -   203   51,111

 

 

 
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the nine-month period ended September 30, 2024, presented on comparative basis.

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

 

NOTE 7: (Continuation)

 

    in millions of US$   in millions of $
Consolidated profit and loss information for the nine-month period ended September 30, 2023   Generation   Oil and gas   Petrochemicals   Holding, Transportation and Others   Eliminations   Consolidated   Consolidated
Total profit of the period attributable to:                            
Owners of the company   310   16   26   105   -   457   119,708
Non-controlling interest   1   -   -   -   -   1   252
                             
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 September 30, 2023                            
Increases in property, plant and equipment and right-of-use assets   192   385   4   3   -   584   151,294

  

 

 
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the nine-month period ended September 30, 2024, presented on comparative basis.

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

 

NOTE 8: REVENUE

    09.30.2024   09.30.2023
         
Energy sales in spot market   144,501   37,961
Energy sales by supply contracts   233,744   71,078
Fuel supply   69,011   17,409
Other sales   6,103   395
Generation sales subtotal   453,359   126,843
         
Gas sales   371,174   95,137
Oil sales   83,731   23,179
Other sales   8,586   1,858
Oil and gas sales subtotal   463,491   120,174
         
Products from catalytic reforming sales   191,472   43,089
Styrene sales   46,934   14,451
Synthetic rubber sales   54,932   14,705
Polystyrene sales   56,094   24,512
Other sales   1,438   428
Petrochemicals sales subtotal   350,870   97,185
         
Technical assistance and administration services sales   13,854   2,658
Other sales   12,920   97
Holding and others subtotal   26,774   2,755
Total revenue (1)   1,294,494   346,957

 

(1)Revenues from CAMMESA represent 30% and 31% of total revenues from sales for the periods ended September 30, 2024 and 2023, respectively, and correspond mainly to the Generation and Oil and gas segments. Additionally, revenues from ENARSA represent 18% of total revenues from sales for the period ended September 30, 2024, and correspond mainly to the Oil and gas segment.

 

 
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the nine-month period ended September 30, 2024, presented on comparative basis.

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

 

NOTE 9: COST OF SALES

    09.30.2024   09.30.2023
Inventories at the beginning of the year   166,023   30,724
         
Plus: Charges of the period        
Purchases of inventories, energy and gas    316,073   84,858
Salaries and social security charges   57,274   16,006
Employees benefits   11,308   3,156
Defined benefit plans   5,776   1,723
Works contracts, fees and compensation for services   83,224   21,271
Property, plant and equipment depreciation   220,084   48,697
Intangible assets amortization   2,548   950
Right-of-use assets amortization   1,454   140
Other assets amortization   4   -
Energy transportation   7,793   1,925
Transportation and freights   14,537   4,198
Consumption of materials   14,566   3,997
Penalties   702   411
Maintenance   26,790   8,236
Canons and royalties   72,247   19,727
Environmental control   3,623   841
Rental and insurance   19,089   4,410
Surveillance and security   3,868   905
Taxes, rates and contributions   4,001   1,315
Other   900   582
Total charges of the period   865,861   223,348
         
Exchange differences on translation   31,235   29,823
         
Less: Inventories at the end of the period   (231,400)   (73,942)
Total cost of sales   831,719   209,953

  

 
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the nine-month period ended September 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

      09.30.2024   09.30.2023
Salaries and social security charges     3,284   934
Employees benefits     325   104
Fees and compensation for services     1,718   748
Property, plant and equipment depreciation     17   5
Taxes, rates and contributions     11,260   2,871
Transportation and freights     34,178   8,506
Other     598   165
Total selling expenses     51,380   13,333

 

10.2 Administrative expenses

 

      09.30.2024   09.30.2023
Salaries and social security charges     39,983   10,848
Employees benefits     6,487   1,797
Defined benefit plans     13,393   3,739
Fees and compensation for services     22,342   5,606
Compensation agreements     18,344   6,545
Directors' and Sindycs' fees      3,930   1,325
Property, plant and equipment depreciation     6,115   1,319
Right-of-use assets amortization     18   -
Consumption of materials     282   46
Maintenance     2,249   505
Transport and per diem     1,541   502
Rental and insurance     989   124
Surveillance and security     890   163
Taxes, rates and contributions     5,811   1,425
Communications     556   181
Other     1,910   504
Total administrative expenses     124,840   34,629

  

10.3 Exploration expenses

      09.30.2024   09.30.2023
Geological and geophysical expenses     256   70
Derecognition of unproductive wells      -   1,702
Total exploration expenses     256   1,772

 

 
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the nine-month period ended September 30, 2024, presented on comparative basis.

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

 

NOTE 10: (Continuation)

10.4 Other operating income and expenses

      09.30.2024   09.30.2023
Other operating income          
Insurance recovery     5,600   415
Services provided to third parties     32   165
Results for property, plant and equipment sale and derecognition     128   187
Contingencies recovery     54   107
Tax charges recovery     30   51
Commercial interests     40,739   12,009
Contractual indemnity     -   1,360
GasAr Plan     38,812   14,059
Export Increase Program     13,012   -
Fair value of consortiums' previous interest     -   2,485
Other     4,309   789
Total other operating income     102,716   31,627
           
Other operating expenses          
Provision for contingencies     (27,636)   (1,012)
Provision for environmental remediation     (1,688)   (793)
Results for property, plant and equipment sale and derecognition     (54)   (19)
Tax on bank transactions      (12,866)   (3,120)
PAIS import tax     (1,844)   (973)
Donations and contributions     (1,642)   (497)
Institutional promotion     (860)   (1,023)
Costs of concessions agreements completion     (4,693)   (1,396)
Contractual penalty     -   (1,360)
Royalties GasAr Plan     (5,442)   (1,977)
Ecuador's transactional agreement      -   (1,510)
Impairment of other receivables     -   (1,613)
Other contractual expenses     -   (1,510)
Other     (7,241)   (1,276)
Total other operating expenses     (63,966)   (18,079)

 

 
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the nine-month period ended September 30, 2024, presented on comparative basis.

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

 

NOTE 10: (Continuation)

10.5 Financial results

  09.30.2024   09.30.2023
Financial income        
Financial interest    2,753   527
Other interest   1,342   563
Total financial income   4,095   1,090
       
Financial costs        
Financial interests (1)   (91,255)   (59,227)
Commercial interests   (503)   (164)
Fiscal interests   (20,451)   (9,446)
Other interests   (6,010)   (714)
Bank and other financial expenses   (2,713)   (1,545)
Total financial costs   (120,932)   (71,096)
       
Other financial results        
Foreign currency exchange difference, net   (9,113)   19,289
Changes in the fair value of financial instruments   122,835   78,884
Result from present value measurement   (5,899)   (2,347)
Result from repurchase of CB   (8,301)   72
Other financial results   284   (104)
Total other financial results   99,806   95,794
         
Total financial results, net   (17,031)   25,788

 

(1) Net of $ 6,481 million and $ 2,892 million capitalized in property, plant and equipment for the nine-month periods ended September 30, 2024 and 2023, respectively.

 
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the nine-month period ended September 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:

 

      09.30.2024   09.30.2023
Current tax      193,601   13,264
Deferred tax      (305,195)   6,723
Difference between previous fiscal period income tax provision and the income tax statement     (121)   450
Total income tax - (Profit) Loss      (111,715)   20,437

 

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

      09.30.2024   09.30.2023
Profit before income tax     340,624   140,397
Current income tax rate     35%   35%
Income tax at the statutary tax rate     119,218   49,139
Share of profit from companies     (33,016)   (4,916)
Non-taxable results     (390)   (3,459)
Effects of exchange differences and other results associated with the valuation of the currency, net     92,460   84,410
Effects of valuation of property, plant and equipment, intangible assets and financial assets     (570,962)   (182,671)
Difference between previous fiscal year income tax provision and deferred tax and the income tax statement     15,791   775
Effect for tax inflation adjustment     266,070   71,033
Reversal of loss carryforwards provision     (344)   -
Non-deductible cost     (488)   5,856
Other     (54)   270
Total income tax - (Profit) Loss      (111,715)   20,437

 

 
 39

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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the nine-month period ended September 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)   Increases for incorporation (2)   Transfers   Decreases   Assets classified as held for sale       Traslation effect    
                Impairment      At the end 
                       
Lands     10,642   -   -   -   -   -   -   2,134   12,776
Buildings     115,809   -   -   369   -   -   -   23,261   139,439
Equipment and machinery     1,584,615   214   1,717   259,145   (5)   (176)   (27,635)   330,779   2,148,654
Wells     966,529   2,842   -   220,838   (4,387)   (26,150)   (53,062)   207,126   1,313,736
Mining property     160,153   -   -   223   -   (3,322)   -   32,133   189,187
Vehicles     8,026   332   54   -   (189)   (181)   -   1,610   9,652
Furniture and fixtures and software equipment     50,878   2,779   693   962   (25,532)   (2)   -   9,721   39,499
Communication equipments     1,016   -   48   -   (237)   -   -   197   1,024
Materials, spare parts and tools     34,178   27,501   -   (27,457)   (42)   (1,906)   -   12,556   44,830
Petrochemical industrial complex     26,047   107   -   5,499   (6)   -   -   5,793   37,440
Civil works     19,443   -   -   56   -   -   -   3,902   23,401
Work in progress     336,707   240,402   -   (441,239)   -   (424)   -   58,302   193,748
Advances to suppliers     52,778   10,990   -   (18,396)   -   (58)   -   9,675   54,989
Other goods     354   -   -   -   -   -   -   71   425
Total at 09.30.2024     3,367,175   285,167   2,512   -   (30,398)   (32,219)   (80,697)   697,260   4,208,800
Total at 09.30.2023     651,459   150,885   -   -   (52,793)   -   -   693,882   1,443,433

 

(1) Includes $ 6,481 million and $ 2,892 million of financial costs capitalized for the nine-month periods ended September 30, 2024 and 2023, respectively.

(2) See Note 5.2.3

 
 40

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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the nine-month period ended September 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   Assets classified as held for sale       Traslation effect   At the end    At the end   At 12.31.2023
            Impairment         
                     
Lands     -   -   -   -   -   -   -   12,776   10,642
Buildings     (67,010)   -   (5,201)   -   -   (13,918)   (86,129)   53,310   48,799
Equipment and machinery     (605,189)   1   (96,152)   99   18,722   (128,991)   (811,510)   1,337,144   979,426
Wells     (467,546)   -   (110,952)   16,524   43,439   (103,039)   (621,574)   692,162   498,983
Mining property     (100,395)   -   (5,926)   2,595   -   (20,652)   (124,378)   64,809   59,758
Vehicles     (4,606)   152   (970)   181   -   (1,007)   (6,250)   3,402   3,420
Furniture and fixtures and software equipment     (45,350)   25,532   (3,554)   2   -   (8,536)   (31,906)   7,593   5,528
Communication equipments     (903)   237   (74)   -   -   (179)   (919)   105   113
Materials, spare parts and tools     (1,315)   42   (110)   -   -   (272)   (1,655)   43,175   32,863
Petrochemical industrial complex     (15,829)   6   (2,358)   -   -   (3,386)   (21,567)   15,873   10,218
Civil works     (1,711)   -   (911)   -   -   (429)   (3,051)   20,350   17,732
Work in progress     -   -   -   -   -   -   -   193,748   336,707
Advances to suppliers     -   -   -   -   -   -   -   54,989   52,778
Other goods     (347)   -   (8)   -   -   (70)   (425)   -   7
Total at 09.30.2024     (1,310,201)   25,970   (226,216)   19,401   62,161   (280,479)   (1,709,364)   2,499,436    
Total at 09.30.2023     (267,995)   7,806   (50,021)   -   -   (287,108)   (597,318)   846,115    
Total at 12.31.2023                                     2,056,974

 

 

 
 41

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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the nine-month period ended September 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   Increases    Decreases   (Impairment) Recovery of impairment (1)   Traslation effect    
            At the end
             
Concession agreements   2,027   -   -   -   406   2,433
Goodwill   27,978   -   -   -   5,609   33,587
Intangible identified in acquisitions of companies   56,049   190   -   -   11,270   67,509
Digital assets   -   3,091   -   (9)   81   3,163
Total at 09.30.2024   86,054   3,281   -   (9)   17,366   106,692
Total at 09.30.2023   25,582   -   (12,613)   411   23,870   37,250
                         
                         
    Amortization        
Type of good   At the beginning   For the period   Decreases   Traslation effect        
          At the end    
               
Concession agreements   (1,976)   (56)   -   (401)   (2,433)    
Intangible identified in acquisitions of companies   (6,180)   (2,492)   -   (1,473)   (10,145)    
Total at 09.30.2024   (8,156)   (2,548)   -   (1,874)   (12,578)    
Total at 09.30.2023   (1,218)   (950)   650   (1,660)   (3,178)    
                         
                         
    Net book values                
Type of good   At the end   At 12.31.2023                
                     
                         
Concession agreements   -   51                
Goodwill   33,587   27,978                
Intangible identified in acquisitions of companies   57,364   49,869                
Digital assets   3,163   -                
Total at 09.30.2024   94,114                    
Total at 09.30.2023   34,072                    
Total at 12.31.2023       77,898                

 

(1)Recoverable value based on the market value of digital assets.

 
 42

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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the nine-month period ended September 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:

 

    09.30.2024   12.31.2023
Tax loss carryforwards   7,381   116,514
Property, plant and equipment   153,160   105
Intangible assets   -   1
Right-of-use assets   1,991   -
Financial assets at fair value through profit and loss   11,111   127
Trade and other receivables   297   366
Provisions   68,165   42,542
Tax liabilities   348   -
Salaries and social security payable    831   540
Defined benefit plans   8,945   3,343
Trade and other payables   792   258
Deferred tax asset   253,021   163,796
Property, plant and equipment   (29,165)   (179,201)
Intangible assets   (31,798)   (27,229)
Investments in companies   (9,253)   (5,343)
Inventories   (35,701)   (36,640)
Financial assets at fair value through profit and loss   (52)   (14,568)
Trade and other receivables   (15,902)   (8,182)
Tax liabilities   (319)   (322)
Tax inflation adjustment   (77,486)   (132,010)
Other   -   (985)
Deferred tax liability   (199,676)   (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:

    09.30.2024   12.31.2023
Deferred tax asset, net   101,466   2
Deferred tax liability, net   (48,121)   (240,686)

 

 

 
 43

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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the nine-month period ended September 30, 2024, presented on comparative basis.

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

 

NOTE 11: (Continuation)

11.4 Inventories

      09.30.2024   12.31.2023
Current          
Materials and spare parts     156,760   103,969
Advances to suppliers     7,722   3,627
In process and finished products     66,918   58,427
Total (1)     231,400   166,023

 

(1) It includes impairment loss for $ 33 million (US$ 0.05 million), $ 735 million (US$ 3 million) and $ 739 million (US$ 3 million) as of September 30, 2024 and 2023 and December 31, 2023, respectivelly.

11.5 Provisions

    09.30.2024   12.31.2023
Non-Current        
Contingencies   139,698   88,042
Asset retirement obligation and wind turbines decommision   28,432   19,463
Environmental remediation   15,124   12,358
Total non-current   183,254   119,863
         
Current        
Asset retirement obligation and wind turbines decommision   3,202   2,775
Environmental remediation   1,304   917
Other provisions   4,214   957
Total current   8,720   4,649

  

 
 44

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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the nine-month period ended September 30, 2024, presented on comparative basis.

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

 

NOTE 11: (Continuation)

 

The evolution of provisions is shown below:

 

    09.30.2024
    Contingencies   Asset retirement obligation and wind turbines decommision   Environmental remediation
             
At the beginning of the year   88,042   22,238   13,275
Increases   33,013   2,421   1,541
Increase for incorporation (1)   -   8,378   -
Decreases   (5)   -   (175)
Exchange differences on translation   18,702   4,809   2,628
Liabilities associated to assets classified as held for sale   -   (1,242)   -
Reversal of unused amounts   (54)   (4,970)   (841)
At the end of the period   139,698   31,634   16,428

 

(1) See Note 5.2.3

 

    09.30.2023
    Contingencies   Asset retirement obligation and wind turbines decommision   Environmental remediation
             
At the beginning of the year   19,047   4,853   2,935
Increases   2,900   573   183
Decreases   (94)   -   (157)
Exchange differences on translation   18,359   4,133   2,747
Decrease por subsidiaries sales   -   (280)   -
Reversal of unused amounts   (107)   (981)   (120)
At the end of the period   40,105   8,298   5,588

 

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 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.

 
 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 nine-month period ended September 30, 2024, presented on comparative basis.

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

 

 

NOTE 11: (Continuation)

11.6 Income tax and minimum notional income tax provision

      09.30.2024   12.31.2023
Non-current          
Income tax, net of witholdings and advances     66,109   40,472
Minimum notional income tax     5,173   4,142
Total non-current     71,282   44,614
           
Current          
Income tax, net of witholdings and advances     199,094   14,026
Total current     199,094   14,026

NOTE 12: FINANCIAL ASSETS AND LIABILITIES

12.1Financial assets at amortized cost

      09.30.2024   12.31.2023
Current          
Term deposit     77,881   81,511
Notes receivable     -   3,238
Total current     77,881   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.

 

 
 46

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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the nine-month period ended September 30, 2024, presented on comparative basis.

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

 

NOTE 12: (Continuation)

12.2Financial assets at fair value through profit and loss

 

      09.30.2024   12.31.2023
Non-current          
Shares     26,451   28,040
Total non-current     26,451   28,040
           
Current          
Government securities      641,786   313,964
Corporate bonds     55,511   64,125
Shares     51,194   71,141
Mutual funds     2,409   2,653
Total current     750,900   451,883

 

12.3Trade and other receivables

 

  Note   09.30.2024   12.31.2023
Non-Current          
Receivables     66   55
Trade receivables     66   55
           
Non-Current          
Related parties 16   5,928   9,040
Advances to suppliers     25,943   -
Tax credits     5,165   1,004
Receivables for sale of associates     622   1,038
Contractual indemnity credit     2,500   2,959
Expenses to be recovered     2,802   -
Other     77   428
Other receivables     43,037   14,469
Total non-current     43,103   14,524

 

 
 47

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

 
 

NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the nine-month period ended September 30, 2024, presented on comparative basis.

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

 

NOTE 12: (Continuation)

 

  Note   09.30.2024   12.31.2023
Current          
Receivables     313,038   84,914
CAMMESA     97,019   80,957
Related parties 16   7,166   3,882
Impairment of financial assets     (970)   (1,203)
Trade receivables, net     416,253   168,550
           
Current          
Related parties 16   7,433   5,800
Tax credits     11,622   7,903
Advances to suppliers     2,004   50
Prepaid expenses     8,762   4,287
Guarantee deposits     87,053   15,378
Expenses to be recovered     10,097   4,934
Insurance to be recovered     7,360   3,589
Receivables for sale of associates     1,311   1,046
GasAr Plan     33,504   8,658
Advances to employees     148   8,395
Contractual indemnity credit     1,579   1,827
Receivable for maintenance contract     1,165   -
Receivable for sale of fiancial instruments     -   5
Impairment of other receivables     (13)   (12)
Other     10,304   7,884
Other receivables, net     182,329   69,744
           
Total current     598,582   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.

 
 48

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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the nine-month period ended September 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:

 

    09.30.2024   09.30.2023
At the beginning of the year     1,203   1,039
Impairment     47,987   297
Write off for utilization     (48,277)   -
Reversal of unused amounts     -   (151)
Exchange differences on translation     57   167
At the end of the period     970   1,352

 

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

 

    09.30.2024   09.30.2023
At the beginning of the year     12   38
Impairment      2   7
Reversal of unused amounts     (2)   (46)
Exchange differences on translation     1   13
At the end of the period     13   12
12.4Cash and cash equivalents

      09.30.2024   12.31.2023
Cash     195   162
Banks     80,304   24,815
Term deposit     112   -
Mutual funds     241,400   112,996
Total     322,011   137,973

 
 49

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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the nine-month period ended September 30, 2024, presented on comparative basis.

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

 

NOTE 12: (Continuation)

12.5Borrowings

 

      09.30.2024   12.31.2023
Non-Current          
Financial borrowings     38,820   -
Corporate bonds     1,330,143   989,182
Total non-current     1,368,963   989,182
           
Current          
Bank overdrafts     -   24,857
Financial borrowings     136,555   54,376
Corporate bonds     168,757   102,124
Total current     305,312   181,357
Total     1,674,275   1,170,539

As of September 30, 2024, and December 31, 2023 the fair value of the Company’s CB amount approximately to $ 1,504,887 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 or year (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.

 
 50

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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the nine-month period ended September 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 nine-month periods ended September 30, 2024 and 2023 is disclosed below.

 

      09.30.2024   09.30.2023
Borrowings at the beginning of the year     1,170,539   285,766
Proceeds from borrowings     653,462   98,835
Payment of borrowings     (108,478)   (30,438)
Accrued interest     91,248   59,222
Payment of interests     (104,058)   (51,886)
Repurchase and redemption of CB     (285,489)   (1,335)
Result from repurchase of CB     8,301   (72)
Foreign currency exchange difference     (9,742)   (53,105)
Borrowing costs capitalized in property, plant and equipment     6,481   2,892
Decrease for sale of subsidiaries     -   (27,901)
Exchange differences on translation     252,011   292,237
Borrowings at the end of the period     1,674,275   574,215

 
 51

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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the nine-month period ended September 30, 2024, presented on comparative basis.

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

 

NOTE 12: (Continuation)

12.5.2 Redemption of Class 17 and 15 and CB and issuance of Class 19, 20 and 22 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. As of the date of issuance of these Consolidated Condensed Interim Financial Statements, US$ 47 million FV of the Class 20 CB were canceled, with a current outstanding US$ 60 million FV.

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

Post-closing, on October 4, 2024, the Company issued Class 22 CB for US$ 83.98 million face value, that will accrue interest at a fixed 5.75% rate and maturing on October 4, 2028.

 

12.5.3 Tender offer for Class 1 CB and international issuance of Class 21 CB

On August 26, 2024, Pampa launched the cash tender offer to purchase at par its Class 1 CB issued on January 24, 2017 and maturing in 2027 for US$ 750 million face value at an annual 7.5% fixed interest rate. The repurchase offer ended on September 5, 2024, reaching approximately 53% of the total, equivalent to US$ 397 million. As of the date of issuance of these Consolidated Condensed Interim Financial Statements, the outstanding face value of the Class 1 Notes amounts to US$ 353 million.

The funds for the repurchase payment, the interest accrued from the last payment date until the offer settlement date and certain issuance costs came from the successful placement of the Class 21 CB, issued on September 10, 2024 for a face value of US$ 410 million, with an annual 7.95% fixed interest rate, an 8.25% yield and maturing on September 10, 2031.

 

12.5.4 Bank loans

During the period ended September 30, 2024, the Company canceled: (i) net short-term financing for $ 20,558 million; and (ii) net import financing for US$ 10 million. Additionally, the Company borrowed US$ 165 million from local banking institutions and completed the repayment of the FINNVERA loan for US$ 4 million.

 
 52

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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the nine-month period ended September 30, 2024, presented on comparative basis.

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

 

NOTE 12: (Continuation)

12.6Trade and other payables

 

  Note   09.30.2024   12.31.2023
Non-Current          
Customer guarantees     23   19
Trade payables     23   19
         
Compensation agreements      34,115   22,264
Finance leases liability     12,268   11,686
Contractual penalty debt     2,368   2,959
Other     512   373
Other payables     49,263   37,282
Total non-current     49,286   37,301
           
Current          
Suppliers     170,530   150,402
Customer advances     14,989   7,138
Related parties 16   22,980   11,808
Trade payables     208,499   169,348
           
Compensation agreements      8,016   8,686
Liability for acquisition of companies     -   6,844
Finance leases liability     3,705   2,923
Contractual penalty debt     1,484   1,315
Various creditors     -   2,484
Other     3,466   200
Other payables     16,671   22,452
           
Total current     225,170   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.

 
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the nine-month period ended September 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 September 30, 2024 and December 31, 2023:

As of September 30, 2024   Level 1   Level 2   Level 3   Total
Assets                
Financial assets at fair value through
profit and loss		                
Government securities   641,786   -   -   641,786
Corporate bonds   55,511   -   -   55,511
Mutual funds   2,409   -   -   2,409
Shares   51,194   -   26,451   77,645
Cash and cash equivalents                
Mutual funds   241,400   -   -   241,400
Derivative financial instruments   -   108   -   108
Other receivables                
Guarantee deposits on derivative financial instruments   4,691   -   -   4,691
Total assets   996,991   108   26,451   1,023,550
                 
Liabilities                
Derivative financial instruments   -   2   -   2
Total liabilities   -   2   -   2
                 
                 
                 
As of December 31, 2023   Level 1   Level 2   Level 3   Total
Assets                
Financial assets at fair value through
profit and loss		                
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

 

 

 
 54

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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the nine-month period ended September 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 September 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:

 

  09.30.2024
  Share capital   Share capital adjustment
At the beginning of the year 27,854   145,729
Variation of the period 5,856   30,638
At the end of the period 33,710   176,367
       
  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

 

 
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the nine-month period ended September 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 September 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.

 

 

      30.09.2024   30.09.2023
Earning attributable to equity holders of the Company     452,630   119,708
Weighted average amount of outstanding shares     1,360   1,368
Basic and diluted earnings per share     332.82   87.51

 
 56

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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the nine-month period ended September 30, 2024, presented on comparative basis.

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

 

NOTE 14: STATEMENT OF CASH FLOWS’ COMPLEMENTARY INFORMATION

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

 

  Note   09.30.2024   09.30.2023
Income tax 10.6   (111,715)   20,437
Accrued interest     75,846   56,745
Depreciations and amortizations 9, 10.1 and 10.2   230,240   51,111
Share of profit from associates and  joint ventures 5.2.2   (94,331)   (14,044)
Profit from sale of companies´ interest           (5,765)   (486)
Results for property, plant and equipment sale and derecognition 10.4   (74)   (168)
Impairment of property, plant and equipment, intangible assets and inventories     18,578   324
Impairment of financial assets     48,912   415
Result from present value measurement 10.5   5,899   2,347
Changes in the fair value of financial instruments     (110,797)   (65,940)
Exchange differences, net     827   (20,750)
Result from repurchase of CB 10.5   8,301   (72)
Costs of concessions agreements completion 10.4   4,693   1,396
Contractual indemnity 10.4   -   (1,360)
Contractual penalty 10.4   -   1,360
Provision for contingecies, net     27,582   895
Provision for environmental remediation 10.4   1,688   793
Accrual of defined benefit plans 9 and 10.2   19,169   5,462
Fair value of consortiums' previous interest 10.4   -   (2,485)
Impairment of other receivables 10.4   -   1,613
Ecuador's transactional agreement  10.4   -   1,510
Compensation agreements  10.2   18,344   6,545
Derecognition of unproductive wells  10.3   -   1,702
Other     (581)   (222)
Adjustments to reconcile net profit to cash flows from operating activities     136,816   47,128

 

 

 

 
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the nine-month period ended September 30, 2024, presented on comparative basis.

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

 

NOTE 14: (Continuation)

14.2 Changes in operating assets and liabilities

 

    09.30.2024   09.30.2023
Increase in trade receivables and other receivables   (433,354)   (32,535)
Increase in inventories   (29,470)   (14,130)
Increase (Decrease) in trade payables and other payables   68,536   (3,762)
Increase (Decrease) in salaries and social security payables   13,474   3,731
Defined benefit plans payments   (1,689)   (416)
Increase in tax liabilities   28,782   7,463
Decrease (Increase) in provisions   (2,298)   62
Income tax payment   -   (14)
Collection (Payments) for derivative financial instruments, net   143   (839)
Changes in operating assets and liabilities   (355,876)   (40,440)
14.3 Significant non-cash transactions

 

    09.30.2024   09.30.2023
         
Acquisition of property, plant and equipment through an increase in trade payables   (40,499)   (21,098)
Borrowing costs capitalized in property, plant and equipment   (6,481)   (2,892)
Compensation trade receivables through an increase in financial assets at fair value through profit and loss   (47,000)   -
Compensation of assets and liabilities associated with assets classified as available for sale through property, plant and equipment, inventories and provisions, net   (12,115)   -
Increase of property, plant and equipment through exchange of assets   -   (8,684)
Increase in right-of-use assets through an increase in other liabilities   -   (409)
Decrease in asset retirement obligation through property, plant and equipment   (4,387)   (768)
Increase in intangible assets through the reduction of other receivables   (3,091)   -

 
 58

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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the nine-month period ended September 30, 2024, presented on comparative basis.

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

 

NOTE 15: CONTINGENT LIABILITIES AND ASSETS

The main changes for the nine-month period ended September 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.
-In the proceeding brought by some neighbors of the Dock Sud district against 14 oil companies, including the Company, petrochemical companies and waste incineration plants located in the Dock Sud Petrochemical Complex claiming alleged environmental damage and purported individual damage to their property, health and morale, on the failure to advance the case, the Court declared the abandonment of the proceeding, which decision was appealed by the plaintiff and is pending resolution.
-The owners of a lot in the city of Rosario (Province of Santa Fe) where a service station was operated by a third party selling fuels under Petrobras branding initiated an evidence preservation proceeding to gather expert evidence allowing for determining the property’s environmental status. The nullity claim filed by the Company is currently being heard.
-In the lawsuit brought before the CSJN by Beatriz Mendoza jointly with 16 other plaintiffs against the Federal Government, the Province of Buenos Aires, the Government of the Autonomous City of Buenos Aires and 44 companies (including the Company) for alleged damages resulting from alleged environmental impact, the CSJN finished supervising the enforcement of the timely passed judgment and closed the proceedings regarding the collective damage; the decision was appealed by the plaintiff and certain non-governmental organizations, and is still pending resolution.

 

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.

 
 59

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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the nine-month period ended September 30, 2024, presented on comparative basis.

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

 

NOTE 15: (Continuation)

 

15.3 Civil and Commercial Claims

-In the arbitration proceeding brought by the Company against High Luck Group Limited - Argentine Branch (“HLG”) as a result of certain breaches of the Participation Assignment Agreement and the Joint Operating Agreement in the Chirete Block, on August 21, 2024, the ICC notified the parties of the Final Award rendered by the Court on August 14, 2024, in which it resolved that: (i) HLG incurred material and serious breach of the obligations taken on as operator; (ii) the lack of compliance described in the preceding item entitled Pampa to remove HLG as operator; and (iii) HLG will pay Pampa 100% of the arbitration costs.

 

NOTE 16: RELATED PARTIES´ BALANCES AND TRANSACTIONS

16.1 Balances with related parties

As of September 30, 2024   Trade receivables   Other receivables   Trade  payables
  Current   Non Current   Current   Current
Associates and joint ventures                
CTB   158   -   -   -
TGS   7,004   5,928   6,644   11,056
Transener   3   -   132   20
Other   -   -   -   17
Other related parties                
SACDE   1   -   111   11,887
Other   -   -   546   -
    7,166   5,928   7,433   22,980
                 
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

 

 

 

 
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the nine-month period ended September 30, 2024, presented on comparative basis.

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

 

NOTE 16: (Continuation)

16.2 Operations with related parties

Operations for the nine-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   1,071   409   -   -   -   -   -   -
TGS    30,921   8,460   (48,834)   (9,865)   -   -   -   -
Transener   -   -   (66)   (27)   -   -   284   76
                                 
Other related parties                                
Fundación   -   -   -   -   -   -   (1,198) - (414)
SACDE    -   -   (80,503)   (13,993)   (125)   -   220   54
Salaverri, Dellatorre, Burgio & Wetzler    -   -   -   -   (56) - (298)   -   -
Other   -   -   (1)   (35)   - - -   -   -
    31,992   8,869   (129,404)   (23,920)   (181)   (298)   (694)   (284)

 

(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 $ 48,901 million and $ 9,927 million and infrastructure works contracted to SACDE charged in property, plant and equipment for $ 80,503 million and $ 13,993 million, of which $ 16,095 million and $ 2,857 million, correspond to fees and general expenses calculated on the costs incurred by SACDE and/or Pampa to carry the works out for the nine-month periods ended September 30, 2024 and 2023, respectively.
(3)Disclosed within administrative expenses.
(4)Correspond mainly to donations expenses and operating leases income.

 

Operations for the nine-month period   Financial income (1)   Financial expenses (2)   Dividends collection   Dividends payment
  2024   2023   2024   2023   2024   2023   2024   2023
Associates and joint ventures                                
OCP   -   -   -   -   6,955   -   -   -
TGS    820   308   -   -   -   -   -   -
Transener   8   1   -   -   -   -   -   -
                                 
Other related parties                                
EMESA   -   -   -   -   -   -   -   (139)
TJSM   -   -   -   -   -   2   -   -
Other   -   -   (4)   (13)   -   -   (37)   -
    828   309   (4)   (13)   6,955   2   (37)   (139)

 

(1)Correspond mainly to financial leases and accrued interest on loans granted.
(2)Correspond to interest and commissions on loans received.

 
 61

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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the nine-month period ended September 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
09.30.2024		   Total
12.31.2023
       
ASSETS                  
                 
NON-CURRENT ASSETS                  
Financial assets at fair value through profit and loss US$                         2.1           970.50                       2,017                             -
Other receivables US$                      39.0           970.50                     37,806                  13,045
Total non-current assets                            39,823                  13,045
                 
CURRENT ASSETS                  
Financial assets at fair value through profit and loss US$                    597.6           970.50                   579,997                390,799
U$                             -              23.31                                -                            1
Financial assets at amortized cost US$                      80.2           970.50                     77,881                  84,749
Derivative financial instruments US$                         0.1           970.50                             98                       229
Trade and other receivables US$                    196.8           970.50                   190,949                133,422
  CLP                 2,249.7                1.08                       2,432                    1,021
Cash and cash equivalents US$                    308.2           970.50                   299,149                  79,692
  CLP                         8.8                1.08                             10                            1
  EUR                         0.0        1,083.85                               1                            1
Total current assets                      1,150,517                689,915
Total assets                      1,190,340                702,960
                   
LIABILITIES                  
                   
NON-CURRENT LIABILITIES                  
Provisions US$                    167.7           970.50                   162,768                112,738
Borrowings US$                 1,410.6           970.50               1,368,963                989,182
Defined benefit plans US$                      10.4           970.50                     10,119                             -
Trade and other payables US$                      50.3           970.50                     48,775                  33,334
Total non-current liabilities                       1,590,625            1,135,254
                   
CURRENT LIABILITIES                  
Provisions US$                         4.6           970.50                       4,506                    3,691
Tax liabilities US$                         6.8           970.50                       6,630                            2
  CLP                    458.7                1.08                          496                       777
Defined benefit plans US$                      10.0           970.50                       9,657                             -
Salaries and social security payable  US$                      0.04           970.50                             35                          20
Derivative financial instruments US$                             -           970.50                                -                       189
Borrowings US$                    289.2           970.50                   280,693                117,493
  CNY                      13.6           138.27                       1,876                    4,388
Trade and other payables US$                    147.0           970.50                   142,663                154,698
  EUR                         2.4        1,083.85                       2,558                    1,959
  CNY                         0.1           138.27                             14                    1,045
  SEK                      16.3              95.69                       1,557                       321
  GBP                      0.02        1,299.98                             26                             -
  U$                      0.36              23.31                               8                            2
Total current liabilities                           450,719                284,585
Total liabilities                       2,041,344            1,419,839
Net Position Liability                        (851,004)              (716,879)

 

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

 
 62

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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the nine-month period ended September 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 July-September 2024 quarter, 21 wind turbines were commissioned for 94.5 MW, and post-closing, during the month of October 2024, 4 additional wind turbines were commissioned for 18 MW.

 

NOTE 19: TERMINATION OF HYDROELECTRIC CONCESSIONS

Under SE Resolutions No. 2/24 and No. 33/24, a 120-calendar-day extension was granted for the Alicurá, El Chocón, Arroyito, Cerros Colorados and Piedra del Águila hydroelectric concessions. Subsequently, Executive Order No. 718/24 established an opt-in mechanism so that concessionaires continue operating the complexes for a maximum term of one year and instructed that a national and international public call for tenders for the sale of the mentioned hydroelectric plants’ shareholding packages be launched within a term of 180 days.

Besides, 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 determined that the Undersecretary of Energy and Mining would exercise control activities during such period. Moreover, SE Resolution No. 98/24 reduced the concession contract’s transition period to 6 months, extendable for a like period.

On October 19, 2024, HIDISA’s concessions —one for the assets and the use of water resources, granted by the Province of Mendoza, and the other for the generation of electric power, granted by the Federal Government— expired. On October 18, 2024, through Executive Order No. 2,096/24, the Province of Mendoza set a 12-month transition period as from the expiration date and established that the Undersecretary of Energy and Mining of the Ministry of Energy and Environment would act as overseer. At the national level, through SCEyM Resolution No. 01/24, the Secretariat of Energy and Mining Coordination established a transition period until June 1, 2025, and appointed the Undersecretary of Electric Energy as overseer.

 
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the nine-month period ended September 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

 

After September 30, 2024 and until the issuance of these Consolidated Condensed Interim Financial Statements, no other relevant events have occurred which may significantly affect them.

 

 

 

 

 
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