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

 

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

 

 

 

 

 

 

 

 

UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS

 

AS OF JUNE 30, 2025

AND FOR THE SIX AND THREE-MONTH PERIODS THEN ENDED

PRESENTED ON COMPARATIVE BASIS

 

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

 

 

 
 

 

 

 

Report on review of interim financial information

To the Shareholders, President and Directors of

Pampa Energía S.A.

Introduction

We have reviewed the accompanying condensed consolidated interim statement of financial position of Pampa Energía S.A. and its subsidiaries (the ‘Group’) as at June 30, 2025 and the related condensed consolidated interim statements of comprehensive income for the six-month and three-month periods then ended, and condensed consolidated statements of changes in equity and cash flows for the six-month period then ended and selected explanatory notes.

Responsibilities of the Board of Directors

The board of Directors is responsible for the preparation and presentation of this condensed consolidated interim financial information in accordance with IFRS Accounting Standards and is therefore responsible for the preparation and presentation of the condensed interim financial statements mentioned in the first paragraph, in accordance with International Accounting Standard 34 (IAS 34).

Scope of review

We conducted our review in accordance with International Standard on Review Engagements 2410, 'Review of interim financial information performed by the independent auditor of the entity'. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed consolidated interim financial information is not prepared, in all material respects, in accordance with IAS 34.

Autonomous City of Buenos Aires, August 6, 2025.

 

PRICE WATERHOUSE & CO. S.R.L.

 

 

 

(Partner)

Carlos Martín Barbafina

 

 

 

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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
AMBA   Buenos Aires Metropolitan Area
BCBA   Buenos Aires Stock Exchange 
BCRA   Argentina’s Central Bank
BNA   Banco de la Nación Argentina
BBL   Barrel
CAMMESA   Compañía Administradora del Mercado Eléctrico Mayorista S.A.
CB   Corporate Bonds 
CIESA   Compañía de Inversiones de Energía S.A.
CITELEC   Compañía Inversora en Transmisión Eléctrica Citelec S.A.
CNG   Compressed Natural Gas
CNV   National Securities Commission of Argentina 
CPB   Central Térmica Piedra Buena   
CPI   Consumer's price index
CTB   CT Barragán S.A.
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 
ENRGE   National Regulatory Authority of Gas and Electricity
FLNG   Floating Liquefied Natural Gas
FNEE   National Electric Energy Fund 
FTR   Five-Year Tariff Review
GASA   Generación Argentina S.A.
HIDISA   Hidroeléctrica Diamante S.A.
HINISA   Hidroeléctrica Los Nihuiles S.A.
HPPL  

Hidroeléctrica Pichi Picún Leufú 

IAS  

International Accounting Standards

 
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GLOSSARY OF TERMS: (Continuation)

Terms   Definitions
IASB   International Accounting Standards Board
ICSID   International Centre for Settlement of Investment Dispute
IFRS   International Financial Reporting Standards
IPIM   Wholesale Domestic Price Index
LNG   Liquefied Natural Gas
M3   Cubic meters
MAT    WEM’s Forward Market
MECON    Ministry of Economy of Argentina
MLC    Foreign Exchange Market
MW   Megawatt
MWh   Megawatt/hour
NYSE   New York Stock Exchange
OCP   Oleoductos de Crudos Pesados Ltd
OCPSA   Oleoductos de Crudos Pesados S.A.
PAIS tax   Tax for an Inclusive and Supportive Argentina. 
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.
RDA   Rincón de Aranda
RIGI                                   Incentive Regime for Large Investments
SACDE   Sociedad Argentina de Construcción y Desarrollo Estratégico S.A. 
SE   Secretary of Energy
SESA   Southern Energy S.A.

 
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GLOSSARY OF TERMS: (Continuation)

Terms   Definitions
TGS   Transportadora de Gas del Sur 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
VAR   Vientos de Arauco Renovables S.A.U.
VMOS   VMOS S.A.
WACC   Weighted Average Cost of Capital
WEM   Wholesale Electricity Market
$   Argentine Pesos

 

 
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UNAUDITED CONSOLIDATED CONDENSED INTERIM STATEMENT OF

COMPREHENSIVE INCOME

For the six and three-month periods ended June 30, 2025, presented on comparative basis.

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

 

 

      Six-month   Three-month
  Note   06.30.2025   06.30.2024   06.30.2025   06.30.2024
                   
Revenue 8   1,008,884   783,788   570,169   446,412
Cost of sales 9   (700,707)   (487,428)   (399,697)   (272,245)
Gross profit     308,177   296,360   170,472   174,167
                   
Selling expenses 10.1   (47,845)   (31,582)   (25,355)   (18,002)
Administrative expenses 10.2   (93,701)   (71,674)   (48,646)   (37,436)
Exploration expenses 10.3   (225)   (167)   (167)   (85)
Other operating income 10.4   60,181   70,781   24,708   41,789
Other operating expenses 10.4   (44,759)   (43,054)   (21,048)   (16,669)
Impairment of intangible assets and inventories     (776)   (142)   31   (110)
Impairment of financial assets     (2,508)   (49,592)   (2,296)   (19,762)
Share of profit from associates and joint ventures 5.1.2   91,347   31,894   43,203   (19,522)
Profit from sale of companies´ interest           -   5,765   -   4,307
Operating income     269,891   208,589   140,902   108,677
                   
Financial income 10.5   38,744   2,009   3,250   662
Financial costs 10.5   (111,459)   (81,688)   (68,615)   (37,733)
Other financial results 10.5   138,110   62,861   100,060   19,056
Financial results, net     65,395   (16,818)   34,695   (18,015)
Profit before income tax     335,286   191,771   175,597   90,662
Income tax 10.6   (115,125)   121,166   (118,154)   (1,521)
Profit of the period     220,161   312,937   57,443   89,141
                   
Other comprehensive income                  
Items that will not be reclassified to profit or loss                  
Exchange differences on translation     576,497   366,577   418,436   176,884
Items that may be reclassified to profit or loss                  
Derivative financial instruments     26,643   -   26,643   -
Income tax     (9,325)   -   (9,325)   -
Exchange differences on translation     (3,794)   119,869   (21,464)   37,814
Other comprehensive income of the period     590,021   486,446   414,290   214,698
Total comprehensive income of the period     810,182   799,383   471,733   303,839

 

 

 

 
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UNAUDITED CONSOLIDATED CONDENSED INTERIM

STATEMENT OF COMPREHENSIVE INCOME (Continuation)

For the six and three-month periods ended June 30, 2025, presented on comparative basis.

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

 

 

 

      Six-month   Three-month
  Note   06.30.2025   06.30.2024   06.30.2025   06.30.2024
Total profit of the period attributable to:                  
                   
Owners of the company     220,570   313,160   58,684   90,061
Non-controlling interest     (409)   (223)   (1,241)   (920)
      220,161   312,937   57,443   89,141
                   
                   
Total comprehensive income of the period attributable to:                  
                   
Owners of the Company     809,005   798,631   471,773   304,266
Non-controlling interest     1,177   752   (40)   (427)
      810,182   799,383   471,733   303,839
                   
Earnings per share attributable to equity holders of the Company                  
                   
Total basic and diluted earning per share 13.2   162.18   230.26   43.15   66.22

 

 

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

 
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UNAUDITED CONSOLIDATED CONDENSED INTERIM STATEMENT

OF FINANCIAL POSITION

As of June 30, 2025, presented on comparative basis.

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

 

 

  Note   06.30.2025   12.31.2024
ASSETS          
NON-CURRENT ASSETS          
Property, plant and equipment 11.1   3,519,259   2,690,533
Intangible assets 11.2   111,806   99,170
Right-of-use assets     11,481   11,330
Deferred tax asset 11.3   139,295   161,694
Investments in associates and joint ventures 5.1.2   1,274,813   1,024,769
Financial assets at fair value through profit and loss 12.2   32,842   28,127
Other assets     436   366
Trade and other receivables 12.3   166,569   76,798
Total non-current assets     5,256,501   4,092,787
           
CURRENT ASSETS          
Inventories 11.4   294,050   230,095
Financial assets at amortized cost 12.1   51,012   82,628
Financial assets at fair value through profit and loss 12.2   814,863   877,623
Derivative financial instruments     45,748   979
Trade and other receivables 12.3   720,687   503,529
Cash and cash equivalents 12.4   193,570   761,231
Total current assets     2,119,930   2,456,085
Total assets     7,376,431   6,548,872

 

 
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UNAUDITED CONSOLIDATED CONDENSED INTERIM STATEMENT

OF FINANCIAL POSITION (Continuation)

As of June 30, 2025, presented on comparative basis.

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

 

 

 

  Note   06.30.2025   12.31.2024
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     54,430   46,616
Voluntary reserve     2,889,619   1,708,688
Other reserves     1,364   2,475
Other comprehensive income     998,966   839,025
Retained earnings     226,392   766,073
Equity attributable to owners of the company     4,199,021   3,391,127
Non-controlling interest     10,344   9,167
Total equity     4,209,365   3,400,294
           
LIABILITIES          
NON-CURRENT LIABILITIES          
Provisions 11.5   125,411   141,436
Income tax and minimum notional income tax provision 11.6   411,483   77,284
Deferred tax liability 11.3   58,729   50,223
Defined benefit plans     36,817   31,293
Borrowings 12.5   1,650,036   1,416,917
Trade and other payables 12.6   99,868   87,992
Total non-current liabilities     2,382,344   1,805,145
           
CURRENT LIABILITIES          
Provisions 11.5   10,215   10,725
Income tax liability 11.6   19,732   265,008
Tax liabilities     43,865   30,989
Defined benefit plans     6,942   7,077
Salaries and social security payable     28,461   40,035
Derivative financial instruments     2   2
Borrowings 12.5   267,715   728,096
Trade and other payables 12.6   407,790   261,501
Total current liabilities     784,722   1,343,433
Total liabilities     3,167,066   3,148,578
Total liabilities and equity     7,376,431   6,548,872

 

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

 
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UNAUDITED CONSOLIDATED CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY

For the six-month period ended June 30, 2025, presented on comparative basis.

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

 

  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   Unappropiated retained earnings   Equity attributable to owners   Non-controlling interest   Total equity
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
Voluntary reserve constitution -   -   -   -   -   -   (539)   181,166   -   -   (180,627)   -   -   -
Stock compensation plans -   -   -   -   -   -   -   -   123   -   -   123   -   123
Dividens ditribution -   -   -   -   -   -   -   -   -   -   -   -   (37)   (37)
Profit for the six-month period -   -   -   -   -   -   -   -   -   -   313,160   313,160   (223)   312,937
Other comprehensive income for the six-month period -   -   -   -   -   -   4,677   171,448   -   192,683   116,663   485,471   975   486,446
Balance as of June 30, 2024 1,360   7,126   19,950   4   21   (211)   41,195   1,510,003   834   732,385   429,823   2,742,490   7,675   2,750,165
Stock compensation plans -   -   -   -   -   -   -   -   1,641   -   -   1,641   -   1,641
Sale of company -   -   -   -   -   -   -   -   -   -   -   -   (63)   (63)
Profit for the complementary six-month period -   -   -   -   -   -   -   -   -   -   251,427   251,427   426   251,853
Other comprehensive income for the complementary six-month period -   -   -   -   -   -   5,421   198,685   -   106,640   84,823   395,569   1,129   396,698
Balance as of December 31, 2024 1,360   7,126   19,950   4   21   (211)   46,616   1,708,688   2,475   839,025   766,073   3,391,127   9,167   3,400,294
Voluntary reserve constitution -   -   -   -   -   -   -   766,073   -   -   (766,073)   -   -   -
Stock compensation plans -   -   -   -   -   -   -   -   (1,111)   -   -   (1,111)   -   (1,111)
Profit for the six-month period -   -   -   -   -   -   -   -   -   -   220,570   220,570   (409)   220,161
Other comprehensive income for the six-month period -   -   -   -   -   -   7,814   414,858   -   159,941   5,822   588,435   1,586   590,021
Balance as of June 30, 2025 1,360   7,126   19,950   4   21   (211)   54,430   2,889,619   1,364   998,966   226,392   4,199,021   10,344   4,209,365
                                                       

 

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

 
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UNAUDITED CONSOLIDATED CONDENSED INTERIM STATEMENT OF CASH FLOWS

For the six-month period ended June 30, 2025, presented on comparative basis.

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

 

 

 

  Note   06.30.2025   06.30.2024
Cash flows from operating activities:          
Profit of the period     220,161   312,937
Adjustments to reconcile net profit to cash flows from operating activities 14.1   170,306   52,945
Changes in operating assets and liabilities 14.2   (267,928)   (294,654)
Net cash generated by operating activities     122,539   71,228
           
Cash flows from investing activities:          
Payment for property, plant and equipment acquisitions     (473,948)   (216,377)
Payment for intangible assets acquisitions     -   (2,457)
Collection for sales of public securities and shares, net     350,106   32,883
Suscription of mutual funds, net     (4,906)   (755)
Capital integration in companies     (44,726)   (19,750)
Payment for right-of-use     -   (11,192)
Collection for equity interests in companies sales     -   15,802
Collection for joint ventures´ share repurchase     -   30,138
Collections for intangible assets sales     4,608   -
Dividends collection     4   6,955
Collection for equity interests in areas sales     2,410   -
Loans granted, net     -   (115)
Net cash used in investing activities     (166,452)   (164,868)
           
Cash flows from financing activities:          
Proceeds from borrowings 12.5   434,160   265,785
Payment of  borrowings     (115,152)   (60,169)
Payment of  borrowings interests 12.5   (113,675)   (71,365)
Repurchase and redemption of corporate bonds 12.5   (804,524)   (66,329)
Payments of dividends     -   (37)
Payments of leases     (2,035)   (1,564)
Net cash (used in) generated by financing activities     (601,226)   66,321
           
Decrease in cash and cash equivalents     (645,139)   (27,319)
           
Cash and cash equivalents at the beginning of the year 12.4   761,231   137,973
Exchange and conversion difference generated by cash and cash equivalents     77,478   27,860
Decrease in cash and cash equivalents     (645,139)   (27,319)
Cash and cash equivalents at the end of the period 12.4   193,570   138,514

 

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

 

 
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS

For the six-month period ended June 30, 2025, presented on comparative basis.

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

 

 

NOTE 1: GENERAL INFORMATION

1.1 General information of the Company

The Company is an Argentine company, which participates in the energy sector, mainly in the production of oil and gas and power generation.

In the oil and gas segment, the Company develops an important activity in gas and oil exploration and production, reaching a production level in the six-month period ended June 30, 2025 of 12.4 million m3/day of natural gas and 5.4 thousand bbl/day of oil in 11 productive areas and 2 exploratory areas in Argentina. Its main production blocks are located in the Provinces of Neuquén and Río Negro.

In the generation segment, the Company, directly and through its subsidiaries and joint ventures, has a 5,472 MW installed capacity as of June 30, 2025, which represents approximately 13% of Argentina’s installed capacity, and being one of the largest independent generators in the country.

In the petrochemicals segment, the Company operates 2 high-complexity plants in Argentina producing styrene, synthetic rubber and polystyrene, with a share ranging between 89% and 98%, in the domestic market.

Finally, through the holding, transportation and others segment, the Company participates in the electricity transmission and gas transportation businesses. In the transmission business, the Company jointly controls Citelec, which has a controlling interest in Transener, a company engaged in the operation and maintenance of a 22,349 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. Additionally, the segment includes advisory services provided to related companies.

1.2 Economic context in which the Company operates

The Company operates in a complex economic context which main variables are experiencing volatility as a result of political and economic events both domestically and internationally.

As part of the economic stabilization plan, on April 11, 2025 the Government announced measures to ease the exchange rate regime and strengthen the monetary system. These measures were promoted to achieve the priority objective of reducing inflation, boosting economic activity, increasing monetary predictability and building up freely available reserves to support the Government’s economic program. This program is financially backed by a new US$ 20 billion funding facility agreed with the International Monetary Fund, among other agreements. Together, these agreements could potentially contribute to a US$ 23.1 billion increase in BCRA’s net reserves during 2025. As a result, inflation has slowed, with monthly figures below 2% in May and June 2025, and the local primary fiscal surplus has been maintained.

 
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2025, presented on comparative basis.

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

 

NOTE 1: (Continuation)

The context of volatility and uncertainty continues as of the date of issuance of these Consolidated Condensed Interim Financial Statements, and it is not possible to predict the macroeconomic and financial situation’s evolution in Argentina or internationally, or any new measures to be announced.

The Company’s Management permanently monitors the evolution of the variables affecting its business to define its course of action and identify potential impacts on its assets and financial position.

The Company’s Consolidated Condensed Interim Financial Statements should be read in light of these circumstances.

NOTE 2: REGULATORY FRAMEWORK

2.1Oil and Gas

2.1.1 Gas market

2.1.1.1 Natural Gas for the residential segment and CNG

SE Resolutions No. 602/24, No. 25/25, No. 111/25, No. 139/25, No. 176/25, No. 228/25 and No. 288/25 established the PIST price to be passed on to end users pursuant to the agreements entered into under GasAr Plan for gas consumptions as from the months of January through July 2025, respectively, and on the tariff schemes published by ENARGAS’ effective date.

2.1.1.2 Compensation for subsidized natural gas consumption

ENARGAS Resolution No. 125/25 restructures the compensation system for natural gas consumption subsidies to natural gas distribution companies, modifying the entity receiving such compensation. The new mechanism, effective as from February 1, 2025, establishes that compensation will be collected directly by natural gas producers and deducted from the invoices issued by producers to distributors.

As of the date of issuance of these Consolidated Condensed Interim Financial Statements, the enactment of clarifying regulations is still pending.

2.1.1.3 LNG exports

SE Resolution No. 145/25 approved the LNG export procedure, establishing that, under Law No. 27,742, a firm LNG export authorization will be granted to allow holders the right to export the authorized volumes without interruptions, restrictions or redirections over the term of the authorization.

 
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2025, presented on comparative basis.

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

 

NOTE 2: (Continuation)

2.2Generation
2.2.1Modifications to the electricity regulatory framework

In line with the objective of ensuring free contracting in the MAT established by Law No. 27,742, on January 28, 2025, SE Resolution No. 21/25 was published establishing different modifications regulating dispatch and operation at the WEM’s MAT. The main modifications include:

- generators, self-generators and co-generators of conventional thermal, hydraulic and nuclear sources commissioned as from January 1, 2025 are exempted from the suspension of contracting within the MAT;

- the presentation or renewal of Energy Plus contracts is limited until October 31, 2025, after the expiration of such contracts the Energy Plus market will no longer be in effect;

- the dispatch scheme set by SE Resolution No. 354/20 is abrogated, effective as from February 1, 2025, and no alternative dispatch scheme is established contemplating the obligations under ENARSA’s supply contract with Bolivia and contracts within the GasAr Plan’s framework;

- as from March 1, 2025, the recognition of fuel costs is authorized according to reference prices and the values declared and accepted in the Production Cost Statement plus freight, natural gas transportation and distribution costs, and taxes and fees.

- CAMMESA will continue centralizing fuel supply for contracts entered into under specific schemes (SE Resolutions No. 220/07, No. 21/16 and No. 287/17);

- generators remunerated under the spot scheme will be able to manage their own fuel, with CAMMESA remaining as the supplier of last resort; and

- new values are established for the cost of non-supplied energy, effective as from February 1, 2025, under the following tiers: (i) US$ 350 /MWh up to 5%; (ii) US$ 750 /MWh up to 10%, and (iii) US$ 1,500 /MWh for more than 10%.

CAMMESA published the proposal with guidelines contemplating various changes to the WEM structure and remuneration schemes for generation, submitted by the SE pursuant to Note NO-2025-09628437-APN-SE#MEC, and received comments from the Associations representing WEM agents. The reports requested by the SE are pending issuance and will be considered for the passing of transitional WEM adjustment regulations.

 
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2025, presented on comparative basis.

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

 

NOTE 2: (Continuation)

On its part, SE Note NO-2025-35216647-APN-SE#MEC dated April 4, 2025 establishes guidelines for the gas dispatch priority scheme for thermal generation in the WEM. Tenders by generators opting into managing their own fuel supply will be considered firm and, in case of non-compliance, will be subject to a Deliver or Pay penalty equivalent to 70% of the unavailable volume’s reference price.

The new reference price equals 90% of the weighted average price per natural gas basin in the PIST using Round 4.2 prices for the Neuquina Basin and the Norte Basin and Round 4.1 prices for the Austral Basin.

Reference prices for liquid fuels are set for each generator based on international indicators, including a premium covering associated financial and logistical costs, and prices for liquid fuels and natural gas from neighboring countries are recognized at the exchange rate effective on the last business day before the transaction due date, associated with the consumption recognized in the respective economic transaction.

Based on the above-mentioned modifications, CAMMESA made several calls to generating agents for natural gas supply tenders for generation at higher prices.

On May 30, 2025, through Executive Order No. 370/25, the National Government extended the national emergency for the electricity generation, transmission, and distribution segments, and for the natural gas transportation and distribution segments, until July 9, 2026.

On July 7, 2025, through Executive Orders No. 450/25 and No. 452/25, Laws No. 15,336 and No. 24,065 were amended, and the ENRGE was established to replace and unify the ENARGAS and the ENRE, respectively, under the guidelines established in the Bases Law (Law No. 27,742).

Executive Order No. 450/25 establishes a 24-month transition period during which the SE must issue regulations aiming to, among other things:

-decentralize and develop a competitive hydrocarbons market through the free contracting of fuel by generators;
-ensure the regularization and collectability of contracts with electricity distributors, and establish thermal generation remuneration criteria allowing for greater efficiency in fuel procurement;
-establish mechanisms for transferring the power purchase agreements executed with CAMMESA to the demand of distributors and large users within the WEM; and
-establish mechanisms for transferring the fuel purchase agreements executed by CAMMESA to the WEM´s supply.

The following amendments to Laws No. 15,336 and No. 24,065 are noteworthy:

-hydroelectric concessions must have a term (maximum 60 years) and must be re-tendered upon expiration;
-free contracting principles between generators and large users and free users in the WEM must be maintained.
 
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2025, presented on comparative basis.

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

 

NOTE 2: (Continuation)

In addition, the SE is empowered to authorize the execution of expansions to the transmission system within an existing concession, after consulting with CAMMESA, and may finance it with FNEE resources. Alternatively, the grid may be expanded on the initiative and at the risk of the party carrying out the expansion, which will be granted priority for the use of the transmission capacity, assignable to third parties.

2.2.2 BESS (Battery Energy Storage Systems) call for tenders

In February 2025, SE Resolution No. 67/2025 launched a national and international call for tenders for up-to-500 MW energy storage projects in the AMBA aiming to improve the electricity grid’s reliability.

The contracts to be executed between distributors and generators will have a maximum 15-year term and provide for a remuneration for power capacity (up to US$ 15,000/MW-month) and energy supplied (US$ 10/MWh), with CAMMESA acting as guarantor of last resort. The commissioning’s target date is scheduled for January 2027.

On July 15, 2025, 27 tenders were submitted for a total 1,347 MW power capacity. Pampa presented a 50-MW project. The award is scheduled for August 29, 2025.

2.2.3 Remuneration at the spot market

SE Resolutions No. 603/24, No. 27/25, No. 113/25, No. 143/25, No. 177/25, No. 227/25, No. 280/25 and No. 331/25, updated the remuneration values for spot generation, providing for 4%, 4%, 1.5%, 1.5%, 2%, 1.5%, 1% and 0.4% increases from the January-August 2025’s economic transactions, respectively. Likewise, the maximum spot price in the WEM was updated to $ 13,487/MWh as from April 2025.

2.3Gas Transportation

TGS’s Tariff situation

TGS received monthly tariff updates for the January-March 2025 period; to this effect, ENARGAS published transitional tariff charts with 2.5%, 1.5% and 1.7% increases, respectively.

On April 30, 2025, ENARGAS Resolution No. 256/25 established the FTR conditions for the 2025-2030 period. This resolution establishes, among other things, the capital base as of December 31, 2024 and a real after-tax WACC discount rate of 7.18%, used to determine the initial tariff scheme, which includes a 3.67% weighted average tariff update to be implemented in thirty one equal and consecutive monthly installments beginning in May 2025. Likewise, the approval of the monthly tariff update methodology based on price indexes (CPI and IPIM) is postponed.

It also establishes the investment plan for a total of $279,108 million (at June 2024 currency), subject to ENARGAS’ control and the regulated operating expenses for the 2025-2030 five-year period.

 
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2025, presented on comparative basis.

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

 

NOTE 2: (Continuation)

Later, through Executive Order No. 371/25, the SE was appointed as the enforcement authority for introducing contractual or tariff modifications. In this regard, SE Resolution No. 241/25 dated June 4, 2025 provided that the periodic transportation tariff update would be monthly, replacing the previous semi-annual scheme. On June 5, 2025, TGS expressed its consent to this resolution, and the tariff schemes were approved through ENARGAS Resolutions No. 350/25, No. 421/25 and No. 539/25, incorporating monthly 2.81%, 0.62% and 1.63% updates in addition to the application of the FTR increases.

License Extension

On July 24, 2025, Executive Order No. 495/25 was published, whereby the PEN extended the license granted to TGS for an additional 20-year period as from December 28, 2027, ratifying the “License Extension Memorandum of Understanding” entered into on July 11, 2025 between the MECON and TGS.

2.4Transmission

Transener and Transba tariff situation

The ENRE determined the hourly remuneration values, establishing 4%, 4%, 2%, and 4% increases against effective values for the January-April 2025 period for Transener S.A. and Transba S.A.

On April 3, 2025, ENRE Resolution No. 236/25 amended the high-voltage and main electricity distribution utility concessionaires’ return rate defined by ENRE Resolution No. 28/25 dated January 10, 2025 from 6.10% to 6.48% after taxes.

On April 30, 2025, the tariff scheme resulting from the Five-Year Tariff Review process was approved and the ENRE established 42.89% and 10.30% increases against April 2025’s effective tariffs for Transener S.A. and Transba S.A., respectively. Similarly, the ENRE determined the remuneration for independent transmission companies, including Transener S.A., for the operation of the Choele Choel – Pto. Madryn Interconnection and the Fourth Line, and Transba S.A., for the operation of Transportista Independiente de Buenos Aires (TIBA)’s facilities, establishing a tariff equivalent to 77.92%, 100% and 99.73%, respectively, of Transener S.A.’s tariff.

In all cases, the increases apply as follows: 20% as from May 1, 2025, and the remaining 80% on a monthly basis over the June-December 2025 period. Likewise, a monthly tariff update mechanism based on the CPI and IPIM price indexes is provided for.

 
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2025, presented on comparative basis.

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

 

NOTE 2: (Continuation)

 

Consequently, the ENRE established the following increases:

 

On June 17, 2025, Transener and Transba filed with ENRE motions of reconsideration against the resolutions issued on April 30, 2025 for Transener S.A., Transba S.A. and TIBA, requesting the ENRE to suspend the requirement to submit the investment plans for the May 2025-April 2030 period until the ENRE issues a ruling on said motions. In the case of the Choele Choel – Puerto Madryn Interconnection, as no motion was filed, the investment plan was submitted for the ENRE’s approval on June 30, 2025.

2.5Regulations on access to the MLC

On April 11, 2025, the BCRA issued Communication “A” 8,226 easing several restrictions to access the MLC, including the following:

-access to the MLC for foreign currency transfers abroad for profits and dividends to non-resident shareholders, in the case of legal entities with profits from fiscal years beginning on or after January 1, 2025,
-access to the MLC for the payment of imports of capital goods,
-elimination of the requirement to submit an affidavit in the case of individuals; for legal entities, the requirement to submit an affidavit stating a commitment not to engage in certain sales, exchanges or transfers of securities for 90 calendar days following the MLC access request remains in place, and
-removal of restrictions on resident individuals to access the MLC to purchase foreign currency for saving or deposit purposes.

It is worth highlighting that the detailed information does not list all possibly applicable exchange regulations; for more information on Argentina’s exchange rate policies, please visit the Central Bank’s website: www.bcra.gov.ar.

2.6Tax regulations

Export Increase Program

On April 14, 2025, PEN Executive Order No. 269/25 repealed PEN Executive Order No. 28/23, reestablishing, as of that date, the payment and settlement in the MLC of 100% of export values.

 
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2025, presented on comparative basis.

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

 

NOTE 3: BASIS OF PREPARATION

These Consolidated Condensed Interim Financial Statements for the six-month period ended June 30, 2025 have been prepared pursuant to the provisions of IAS 34, “Interim Financial Information”, are expressed in millions of pesos and were approved for their issuance by the Company’s Board of Directors on August 6, 2025.

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, 2024, which have been prepared under IFRS Accounting Standards.

These Consolidated Condensed Interim Financial Statements for the six-month period ended June 30, 2025 have not been audited. The Company’s management estimates they include all the necessary adjustments to state fairly the results of operations for the period. The results for the six-month period ended June 30, 2025, 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, 2024, and for the six-month period ended June 30, 2024, disclosed for comparative purposes, arises from the Consolidated Financial Statements as of those dates.

Additionally, certain non-significant reclassifications have been made to the Consolidated Financial Statements´ figures to keep the consistency in the presentation with the current period 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, 2024.

4.1 New accounting standards, amendments and interpretations issued by the IASB effective as of December 31, 2025 and adopted by the Company

The Company has applied the following standards and / or amendments for the first time as of January 1, 2025:

-IAS 21 - “Effects of Changes in Foreign Exchange Rates” (amended in August 2023).
 
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2025, presented on comparative basis.

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

 

NOTE 4: (Continuation)

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 June 30, 2025, the Company has not early applied the following standards and/or amendments:

-   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 faithfully representing an 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 performance measures defined by management. The standard applies retroactively to fiscal years and interim periods beginning on or after January 1, 2027, allowing for early adoption. The Company is currently analyzing the impact of the application of the standard on its financial statements’ disclosures.

-   IFRS 19 - “Subsidiaries without Public Accountability: Disclosures”: issued in April 2024. It allows for reduced disclosures for entities without public accountability which are subsidiaries of an entity that prepares consolidated financial statements available for public use and 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 in case of issuance of electronic payment instructions meeting certain requirements, and incorporates 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 are applicable 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 are applicable 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.

 
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2025, presented on comparative basis.

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

 

NOTE 4: (Continuation)

-   IFRS 9 and IFRS 7 “Financial Instruments and Disclosures”: in December 2024, IFRS 9 is amended and disclosure requirements are incorporated into IFRS 7 regarding nature-dependent electricity contracts. In particular, it allows exemption from fair value accounting for entities that are net purchasers of electricity during the term of the contracts, and eases the designation as a hedging instrument for contracts not meeting the requirements for the above-mentioned exemption. The amendments are applicable to fiscal years 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.

NOTE 5: GROUP STRUCTURE

5.1Interest in subsidiaries, associates and joint ventures
5.1.1Subsidiaries information

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

            06.30.2025   12.31.2024
Company   Country   Main activity   Direct and indirect participation %   Direct and indirect participation %
Autotrol Renovables S.A.   Argentina   Generation   100.00%   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   Investment   100.00%   100.00%
HIDISA   Argentina   Generation   61.00%   61.00%
HINISA   Argentina   Generation   52.04%   52.04%
OCP   Gran Cayman   Investment   100.00%   100.00%
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%
VAR   Argentina   Generation   100.00%   100.00%
Vientos Solutions Argentina S.A.U.   Argentina   Advisory services   100.00%   100.00%
5.1.2Associates 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 millions of common shares with one vote per share:

 
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2025, presented on comparative basis.

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

 

NOTE 5: (Continuation)

        Information about the issuer    
    Main activity   Date   Share capital   Profit (Loss) of the period   Equity   Direct and indirect participation %
Associates                        
SESA (1)   Gas treatment   06.30.2025   330   (1,770)   47,550   20.00%
VMOS (2)   Hydrocarbon transportation   06.30.2025   138,752   (32,472)   390,596   10.20%
Joint ventures                    
CIESA (3)   Investment   06.30.2025   639   155,039   1,363,339   50.00%
Citelec (4)   Investment   06.30.2025   556   38,570   414,833   50.00%
CTB   Generation   06.30.2025   8,558   15,178   570,574   50.00%

(1) On April 24, 2025, SE Resolution No. 165/25 granted SESA the LNG Free Export Authorization certificate for 11.72 million m3/d of gas over a 30-year period between July 1, 2027 and June 30, 2057. Additionally, on May 5, 2025, MECON Resolution No. 559/25 approved SESA’s application to opt into the RIGI.

(2) On March 21, 2025, MECON Resolution No. 302/25 approved VMOS’s application to opt into the RIGI

(3) The Company holds a 50% interest in CIESA, a company that holds a 53.83% interest in TGS’s capital stock; therefore, the Company has a 26.91% interest in TGS.

As of June 30, 2025, TGS’s common shares and ADR traded on the BCBA and NYSE were listed at $ 6,260.00 and US$ 25.90, respectively, giving Pampa’s holding an approximate market value of $ 1,268,253 million.

(4) The Company has a 50% interest in Citelec, a company that holds a 52.65% interest in Transener’s capital stock; therefore, the Company has a 26.33% indirect interest in Transener. As of June 30, 2025, Transener’s common share price listed at the BCBA was $ 2,065.00, conferring Pampa’s indirect holding an approximate market value of $ 241,730 million.

 

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

 

    06.30.2025   12.31.2024
Disclosed in non-current assets        
Associates        
VMOS   39,857   13
SESA   9,510   -
Total associates   49,367   13
Joint ventures        
CIESA   732,743   624,768
Citelec   207,416   163,084
CTB   285,287   236,904
Total joint ventures   1,225,446   1,024,756
Total associates and joint ventures   1,274,813   1,024,769

 

 
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2025, presented on comparative basis.

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

 

NOTE 5: (Continuation)

 

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

    06.30.2025   06.30.2024
Associates        
SESA   2,685   -
TGS   -   873
VMOS   (3,166)   -
Total associates   (481)   873
         
Joint ventures        
CIESA   64,954   37,676
Citelec   19,285   6,501
CTB   7,589   (36,120)
OCP   -   22,964
Total joint ventures   91,828   31,021
Total associates and joint ventures   91,347   31,894

 

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

    06.30.2025   06.30.2024
At the beginning of the year   1,024,769   542,978
Dividends   (52,936)   (6,955)
Increases   44,726   12,625
Share repurchase   -   (30,138)
Sale of equity interests   -   (10,037)
Share of profit   91,347   31,894
Exchange differences on translation   166,907   284,214
At the end of the period   1,274,813   824,581
5.1.3OCP

Pursuant to the terms and conditions of the concession authorization agreement, OCP caused OCPSA to establish two guarantees, one operational and one environmental, each in the amount of US$ 50 million (including surety bonds provided by the Group as shareholder in the amount of US$ 84 million disclosed within non-current guarantee deposits), which would remain in effect for the term of the agreement and until 90 days after its termination on November 30, 2024. Therefore, the guarantees were scheduled to expire on March 1, 2025, since no claim that may be considered covered within their scope would have been initiated by that date. However, Citibank Ecuador informed OCP that, in its understanding, the guarantees had not expired because OCPSA had not complied with certain required formalities. On its part, OCP has formally notified Citibank Ecuador that its position is incorrect, explaining the reasons for that interpretation. As of the date of issuance of these Consolidated Condensed Interim Financial Statements, OCP has not received a response to this notification. OCP has also requested the Ecuadorian Government to notify Citibank Ecuador of the guarantees’ expiration, having received no response as of the date of issuance of these Consolidated Condensed Interim Financial Statements.

 
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2025, presented on comparative basis.

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

 

NOTE 5: (Continuation)

OCP understands that there is no legal basis for claims under the operational guarantee (to be initiated only in case of a capacity deficiency pursuant to the concession authorization agreement) or under the environmental guarantee (to be initiated only in the event of termination of the concession authorization agreement due to the lack of payment of environmental compensations). In this regard, the guarantees should be terminated and rendered null and void, all in accordance with their terms and conditions.

OCP is taking all necessary actions to terminate the guarantees pursuant to the terms of the concession authorization agreement. On April 11, 2025, OCP filed an arbitration proceeding before the ICSID seeking the effective release of the guarantees and compensation for the damages sustained as a result of the failure to release them; and, subsidiarily, to receive from Ecuador the amount of the guarantees plus interest and damages resulting from Ecuador’s actions. As of the date of issuance of these Consolidated Condensed Interim Financial Statements, the Arbitration Court that will hear the arbitration has been constituted.

5.1.4CIESA - TGS

On March 7, 2025, heavy rains, unprecedented in the last 100 years, were recorded in the city of Bahía Blanca and adjacent areas, causing flooding in all urban areas and their surroundings.

This event caused the Saladillo García stream to overflow, flooding the Cerri Complex and, consequently, halting the production of liquids and partially affecting natural gas transportation services. It is worth highlighting that the external electricity distribution system and the electricity generation and distribution facilities were also affected.

The natural gas transportation service was gradually restored in full, with no significant impact on TGS’s revenues. However, liquid production at the Cerri Complex was interrupted from March 7, 2025 to early May 2025.

In the six-month period ended June 30, 2025, TGS recorded a $ 33,573 million loss for event-related expenses and the impairment of materials and other property, plant and equipment. Even though the Cerri Complex is operating under normal conditions, as of the date of issuance of these Consolidated Condensed Interim Financial Statements, the final cost of the event has not yet been assessed by TGS.

Furthermore, TGS is undertaking preliminary coverage negotiations with insurance companies; therefore, the insurance proceeds’ amount and timing have not been determined as of the date of issuance of these Consolidated Condensed Interim Financial Statements.

 
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2025, presented on comparative basis.

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

 

NOTE 5: (Continuation)

Tender for Perito Moreno Gas Pipeline (GPM) Expansion

On May 22, 2025, ENARSA launched a tender to expand the GPM, aiming to increase natural gas transportation capacity from Vaca Muerta by 14 million cubic meters per day. On July 28, 2025, TGS submitted a tender, and the award is scheduled for October 13, 2025.

5.1.5VMOS

On July 8, 2025, VMOS entered into a syndicated international loan agreement for a total amount of US$ 2 billion with a 5-year term and an interest rate equivalent to SOFR Term plus a 5.50% margin, intended to finance the construction of the Vaca Muerta Oil Sur pipeline. The project requires a total estimated investment of US$ 3 billion and includes a loading and unloading terminal equipped with interconnected mooring buoys, a tank farm, and other associated accessory facilities for exporting oil and liquids through carriers. Likewise, VMOS amended the transportation agreements entered into with its shareholders to align its terms with the financing structure.

As security for the obligations assumed in the loan: (i) VMOS has assigned in guarantee to the banks its collection rights under the transportation contracts entered into with the initial shippers (YPF, Vista, Pampa, PAE, Pluspetrol, Chevron, Shell, Tecpetrol and GyP); (ii) each initial shipper entered into a direct agreement with the banks; and (iii) VMOS’s Class A shareholders (including Pampa) have granted a fiduciary assignment of their shares as collateral for the financing, which shall remain in effect until the completion of the project.

Disbursements may be requested by VMOS on a monthly basis until the earlier of the project completion date or July 31, 2027.

Under the terms of the syndicated loan agreement, VMOS has undertaken certain customary affirmative and negative covenants for this type of transaction.

In addition, the revenues generated from VMOS’ export operations will be credited to an offshore bank account structure, which is managed by a bank acting as collateral agent. Furthermore, a local tariff guarantee trust has been established, under which a branch of Citibank, N.A. acting as trustee, will manage both the local revenues received by VMOS and any funds transferred from abroad.

5.2Oil and gas participations

Assets and liabilities as of June 30, 2025 and December 31, 2024 and the production cost of the Joint Operations and Consortiums in which the Company participates corresponding to the six-month periods ended June 30, 2025 and 2024 are detailed below:

 
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2025, presented on comparative basis.

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

 

NOTE 5: (Continuation)

    06.30.2025   12.31.2024
         
Non-current assets     204,826     155,862
Current assets    18,696    13,437
Total assets     223,522     169,299
         
Non-current liabilities    97,693    53,284
Current liabilities    39,680    26,471
Total liabilities     137,373    79,755
         
         
    06.30.2025   06.30.2024
Production cost    56,581    39,640

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

Extension of the evaluation period for the Parva Negra Este area

Through Provincial Executive Order No. 550/25, issued on May 17, 2025, the Province of Neuquen approved a 2-year extension of the evaluation period for the Parva Negra Este area from April 3, 2025 to April 2, 2027.

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, 2024.

 
24 

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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2025, presented on comparative basis.

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

 

NOTE 6: (Continuation)

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.

NOTE 7: SEGMENT INFORMATION

The Company is a fully integrated power company in Argentina, which participates mainly in the production of oil and gas and power generation.

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

Oil and Gas, principally consisting of the Company’s interests in oil and gas areas, the activities of Pampa Energía S.A. - Sucursal Dedicada Midstream RDA and direct and indirect interest in SESA and PECSA.

Generation, principally consisting of the Company’s direct and indirect interests in HINISA, HIDISA, 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, PEPE IV and PEPE VI wind farms.

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

Holding, Transportation and Others, principally consisting of our stake in joint businesses CITELEC, CIESA and their respective subsidiaries holding the concession over high-voltage electricity transmission and gas transportation, respectively, the direct and indirect interests in VMOS and OCP, holding activities, and other investment activities.

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

 
25 

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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2025, 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 six-month period ended June 30, 2025   Oil and gas   Generation   Petrochemicals   Holding, Transportation and others   Eliminations   Consolidated   Consolidated
Revenue - local market   228   379   131   12   -   750   839,685
Revenue - foreign market   66   1   83   -   -   150   169,199
Intersegment revenue   56   -   -   -   (56)   -   -
Cost of sales   (270)   (205)   (206)   -   56   (625)   (700,707)
Gross profit   80   175   8   12   -   275   308,177
                             
Selling expenses   (34)   (2)   (6)   (1)   -   (43)   (47,845)
Administrative expenses   (40)   (21)   (3)   (20)   -   (84)   (93,701)
Exploration expenses   -   -   -   -   -   -   (225)
Other operating income   16   13   19   5   -   53   60,181
Other operating expenses   (8)   (5)   (5)   (22)   -   (40)   (44,759)
Impairment of intangible assets and inventories   (1)   -   -   -   -   (1)   (776)
Impairment of financial assets   (2)   -   -   -   -   (2)   (2,508)
Share of profit from associates and joint ventures   2   7   -   67   -   76   91,347
Operating income   13   167   13   41   -   234   269,891
                             
Financial income   -   8   27   -   -   35   38,744
Financial costs   (55)   (25)   -   (19)   -   (99)   (111,459)
Other financial results   -   80   3   39   -   122   138,110
Financial results, net   (55)   63   30   20   -   58   65,395
Profit (Loss) before income tax   (42)   230   43   61   -   292   335,286
                             
Income tax   13   (111)   (14)   13   -   (99)   (115,125)
Profit (Loss) of the period   (29)   119   29   74   -   193   220,161
                             
Depreciation and amortization   118   60   3   -   -   181   200,769
 
26 

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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2025, 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 six-month period ended June 30, 2025   Oil and gas   Generation   Petrochemicals   Holding, Transportation and others   Eliminations   Consolidated   Consolidated
Total profit (loss) of the period attributable to:                            
Owners of the company   (29)   119   29   74   -   193   220,570
Non-controlling interest   -   -   -   -   -   -   (409)
                             
Consolidated financial position information as of June 30, 2025                            
Assets   2,111   2,766   185   1,109   (49)   6,122   7,376,431
Liabilities   1,484   560   64   569   (49)   2,628   3,167,066
                             
Net book values of property, plant and equipment   1,522   1,331   31   37   -   2,921   3,519,259
                             
Additional consolidated information as of June 30, 2025                            
Increases in property, plant and equipment, intangible assets and right-of-use assets   453   28   6   6   -   493   547,630

 

 
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2025, 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 six-month period ended June 30, 2024   Oil and gas   Generation   Petrochemicals   Holding, Transportation and others   Eliminations   Consolidated   Consolidated
Revenue - local market   258   319   155   10   -   742   649,186
Revenue - foreign market   57   3   99   -   -   159   134,602
Intersegment revenue   53   -   -   -   (53)   -   -
Cost of sales   (234)   (158)   (226)   -   53   (565)   (487,428)
Gross profit   134   164   28   10   -   336   296,360
                             
Selling expenses   (29)   (1)   (6)   -   -   (36)   (31,582)
Administrative expenses   (36)   (25)   (3)   (19)   -   (83)   (71,674)
Exploration expenses   -   -   -   -   -   -   (167)
Other operating income   42   32   8   1   -   83   70,781
Other operating expenses   (14)   (7)   (3)   (28)   -   (52)   (43,054)
Impairment of intangible assets and inventories   -   -   -   -   -   -   (142)
Impairment of financial assets   (10)   (46)   -   -   -   (56)   (49,592)
Share of profit from associates and joint ventures   -   (38)   -   77   -   39   31,894
Profit from sale of companies´ interest         -   -   -   7   -   7   5,765
Operating income   87   79   24   48   -   238   208,589
                             
Financial income   -   2   -   -   -   2   2,009
Financial costs   (49)   (28)   (2)   (15)   -   (94)   (81,688)
Other financial results   (14)   80   1   7   -   74   62,861
Financial results, net   (63)   54   (1)   (8)   -   (18)   (16,818)
Profit before income tax   24   133   23   40   -   220   191,771
                             
Income tax   51   100   3   (7)   -   147   121,166
Profit of the period   75   233   26   33   -   367   312,937
                             
                             
Depreciation and amortization   110   40   2   -   -   152   131,965

 

 
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2025, 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 six-month period ended June 30, 2024   Oil and gas   Generation   Petrochemicals   Holding, Transportation and others   Eliminations   Consolidated   Consolidated
Total profit of the period attributable to:                            
Owners of the company   75   233   26   33   -   367   313,160
Non-controlling interest   -   -   -   -   -   -   (223)
                             
Consolidated financial position information as of December 31, 2024                            
Assets   1,918   3,155   173   1,116   (17)   6,345   6,548,872
Liabilities   1,583   857   109   518   (17)   3,050   3,148,578
                             
Net book values of property, plant and equipment   1,183   1,357   28   39   -   2,607   2,690,533
                             
Additional consolidated information as of June 30, 2024                            
Increases in property, plant and equipment, intangibles assets and right-of-use assets   197   43   3   5   -   248   217,438

 

 

 

 
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2025, presented on comparative basis.

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

 

NOTE 8: REVENUE

 

    06.30.2025   06.30.2024
         
Gas sales   260,931   220,732
Oil sales   66,618   49,752
Other sales   6,324   5,845
Oil and gas sales subtotal   333,873   276,329
         
Energy sales in spot market   139,061   86,761
Energy sales by supply contracts   215,457   146,767
Fuel supply   63,358   41,419
Other sales   5,492   4,710
Generation sales subtotal   423,368   279,657
         
Products from catalytic reforming sales   129,899   118,563
Styrene sales   33,723   27,674
Synthetic rubber sales   39,171   34,866
Polystyrene sales   35,365   36,886
Other sales   401   917
Petrochemicals sales subtotal   238,559   218,906
         
Technical assistance and administration services sales   12,823   8,748
Other sales   261   148
Holding, Transportation and others subtotal   13,084   8,896
Total revenue (1)(2)   1,008,884   783,788

 

(1)Revenues from CAMMESA represent 37% and 32% of total revenues from sales for the periods ended June 30, 2025 and 2024, respectively, and correspond mainly to the Oil and gas and Generation segments.

 

(2)Including $ 5,997 million and $ 3,939 million in the Oil and gas segment and $ 5,158 million and $ 4,453 million in the Petrochemical segment corresponding to export duties for the periods ended June 30, 2025 and 2024, respectively.

 

 
30 

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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2025, presented on comparative basis.

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

 

NOTE 9: COST OF SALES

 

    06.30.2025   06.30.2024
Inventories at the beginning of the year   230,095   166,023
         
Plus: Charges of the period        
Purchases of inventories, energy and gas   223,026   181,815
Salaries and social security charges   48,663   36,120
Employees benefits   8,078   6,340
Defined benefit plans   2,093   3,868
Works contracts, fees and compensation for services   80,334   52,284
Property, plant and equipment depreciation   192,826   125,943
Intangible assets amortization   2,223   1,645
Right-of-use assets amortization   1,047   936
Energy transportation   8,627   4,251
Transportation and freights   24,485   15,860
Consumption of materials   13,104   9,224
Penalties   958   286
Maintenance   34,125   10,919
Canons and royalties   55,371   43,339
Environmental control   2,872   2,133
Rental and insurance   17,695   11,316
Surveillance and security   4,830   2,218
Taxes, rates and contributions   1,863   2,294
Other   1,825   997
Total charges of the period   724,045   511,788
Exchange differences on translation   40,617   19,340
Less: Inventories at the end of the period   (294,050)   (209,723)
Total cost of sales   700,707   487,428

 
31 

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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2025, presented on comparative basis.

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

 

NOTE 10: OTHER ITEMS OF THE STATEMENT OF COMPREHENSIVE INCOME

10.1 Selling expenses

 

      06.30.2025   06.30.2024
Salaries and social security charges     2,815   2,064
Employees benefits     134   185
Fees and compensation for services     1,037   941
Property, plant and equipment depreciation     5   12
Taxes, rates and contributions     9,235   6,878
Transportation and freights     33,768   21,187
Other     851   315
Total selling expenses     47,845   31,582

10.2 Administrative expenses

 

      06.30.2025   06.30.2024
Salaries and social security charges     36,631   25,079
Employees benefits     3,858   3,499
Defined benefit plans     4,747   8,929
Fees and compensation for services     24,684   14,357
Compensation agreements     574   6,242
Directors' and Syndics' fees     3,373   2,531
Property, plant and equipment depreciation     4,668   3,429
Consumption of materials     203   210
Maintenance     1,813   1,139
Transport and per diem     867   779
Rental and insurance     401   134
Surveillance and security     772   415
Taxes, rates and contributions     7,454   3,551
Communications     455   277
Other     3,201   1,103
Total administrative expenses     93,701   71,674

 

10.3 Exploration expenses

 

      06.30.2025   06.30.2024
Geological and geophysical expenses     225   167
Total exploration expenses     225   167

 
32 

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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2025, presented on comparative basis.

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

 

NOTE 10: (Continuation)

10.4 Other operating income and expenses

 

      06.30.2025   06.30.2024
Other operating income          
Insurance recovery     14,691   3,127
Results for intangibles assets sale     2,048   -
Results for other assets sale     809   -
Services provided to third parties     14   27
Results for property, plant and equipment sale     6   47
Recovery of provision for contingencies     18,505   54
Tax charges recovery     -   30
Dividends received     4   -
Commercial interests     4,724   34,198
GasAr Plan     14,486   21,951
Export Increase Program     2,023   8,094
Other     2,871   3,253
Total other operating income     60,181   70,781
           
Other operating expenses          
Provision for contingencies     (15,971)   (23,226)
Provision for environmental remediation     (709)   (806)
Results for property, plant and equipment sale and derecognition     (1)   (54)
Results for other assets sale and derecognition     (34)   -
Tax on bank transactions     (15,451)   (5,782)
PAIS import tax     (374)   (1,188)
Donations and contributions     (1,156)   (694)
Institutional promotion     (701)   (556)
Costs of concessions agreements completion     (582)   (2,539)
Royalties GasAr Plan     (2,466)   (3,095)
Incident costs     (2,027)   -
Other     (5,287)   (5,114)
Total other operating expenses     (44,759)   (43,054)

 

 
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2025, presented on comparative basis.

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

 

NOTE 10: (Continuation)

10.5 Financial results

 

    06.30.2025   06.30.2024
Financial income        
Financial interests   38,316   1,129
Other interests   428   880
Total financial income   38,744   2,009
         
Financial costs        
Financial interests (1)   (85,556)   (59,977)
Commercial interests   (23)   (362)
Fiscal interests   (23,381)   (14,229)
Other interests   (282)   (5,264)
Bank and other financial expenses   (2,217)   (1,856)
Total financial costs   (111,459)   (81,688)
         
Other financial results        
Foreign currency exchange difference, net   19,947   (10,071)
Changes in the fair value of financial instruments   114,272   84,670
Result from present value measurement   1,594   (3,399)
Result from repurchase of CB   2,043   (8,114)
Other financial results   254   (225)
Total other financial results   138,110   62,861
         
Total financial results, net   65,395   (16,818)
         

 

(1) Net of $ 1,617 million and $ 5,947 million borrowing costs capitalized in property, plant and equipment corresponding to the six-month period ended June 30, 2025 and 2024, respectively.

 

 

 

 
34 

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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2025, presented on comparative basis.

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

 

NOTE 10: (Continuation)

10.6 Income tax

 

The breakdown of income tax charge is:

 

      06.30.2025   06.30.2024
Current tax     69,430   132,517
Deferred tax     44,946   (253,683)
Difference between previous fiscal year income tax provision and the income tax statement     749   -
Total income tax - Loss (Profit)     115,125   (121,166)

 

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

 

      06.30.2025   06.30.2024
Profit before income tax     335,286   191,771
Current income tax rate     35%   35%
Income tax at the statutory tax rate     117,350   67,120
Share of profit from companies     (31,972)   (11,163)
Non-taxable results     (1,255)   (5)
Effects of exchange differences and other results associated with the valuation of the currency, net     148,836   56,318
Effects of valuation of property, plant and equipment, intangible assets and financial assets     (190,481)   (433,771)
Difference between previous fiscal year income tax provision and deferred tax and the income tax statement     706   15,499
Effect for tax inflation adjustment     68,085   196,746
Reversal of loss carryforwards provision     (69)   (12,317)
Non-deductible cost     4,168   385
Other     (243)   22
Total income tax - Loss (Profit)     115,125   (121,166)

 

 
35 

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

 

NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2025, presented on comparative basis.

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

 

NOTE 11: NON-FINANCIAL ASSETS AND LIABILITIES

11.1Property, plant and equipment
      Original values
Type of good     At the beginning   Increases (1)   Transfers   Decreases   Traslation effect    
              At the end
               
Lands     13,585   -   -   (1)   2,277   15,861
Buildings     210,542   -   815   -   35,375   246,732
Vehicules     10,085   576   -   -   1,720   12,381
Furniture and fixtures, tools and software and communication equipment     45,845   1,279   9,643   (466)   8,680   64,981
Thermal generation plants     1,126,149   51   44,426   -   193,013   1,363,639
Renewable generation plants     707,740   4   21,208   -   119,760   848,712
Petrochemical plants     43,032   111   4,954   -   7,699   55,796
Mining property, wells and drilling equipment     2,024,516   -   180,930   -   348,679   2,554,125
Drilling and work in progress     343,240   543,342   (261,976)   -   87,669   712,275
Other goods     535   -   -   -   91   626
Total at 06.30.2025     4,525,269   545,363   -   (467)   804,963   5,875,128
Total at 06.30.2024     3,367,175   203,599   -   (449)   439,267   4,009,592

 

(1) Includes $ 1,617 million and $ 5,947 million of borrowing costs capitalized for the six-month period ended June 30, 2025 and 2024, respectively.

 

 
36 

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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2025, 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           At the end   At 12.31.2024
          Traslation effect   At the end    
                   
Lands     -   -   -   -   -   15,861   13,585
Buildings     (97,979)   -   (4,147)   (16,802)   (118,928)   127,804   112,563
Vehicules   (6,676)   -   (866)   (1,170)   (8,712)   3,669   3,409
Furniture and fixtures, tools and software and communication equipment     (38,183)   466   (3,205)   (6,535)   (47,457)   17,524   7,662
Thermal generation plants     (561,921)   -   (39,563)   (97,994)   (699,478)   664,161   564,228
Renewable generation plants     (80,357)   -   (19,038)   (14,626)   (114,021)   734,691   627,383
Petrochemical plants     (24,564)   -   (2,594)   (4,343)   (31,501)   24,295   18,468
Mining property, wells and drilling equipment     (1,024,543)   -   (128,082)   (182,543)   (1,335,168)   1,218,957   999,973
Drilling and work in progress     -   -   -   -   -   712,275   343,240
Other goods     (513)   -   (4)   (87)   (604)   22   22
Total at 06.30.2025     (1,834,736)   466   (197,499)   (324,100)   (2,355,869)   3,519,259    
Total at 06.30.2024     (1,310,201)   405   (129,384)   (175,034)   (1,614,214)   2,395,378    
Total at 12.31.2024                             2,690,533

 

 

 

 

 
37 

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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2025, 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      
          Traslation effect   At the end
               
Concession agreements   2,587   -   -   -   105   2,692
Goodwill   35,715   -   -   -   5,987   41,702
Intangible identified in acquisitions of companies   71,786   -   -   (307)   11,997   83,476
Digital assets   3,424   1,714   (2,523)   -   167   2,782
Total at 06.30.2025   113,512   1,714   (2,523)   (307)   18,256   130,652
Total at 06.30.2024   86,054   2,647   -   (110)   11,043   99,634
                         
                         
    Amortization        
Type of good   At the beginning   For the year   Traslation effect            
        At the end        
                 
Concession agreements   (2,587)   -   (105)   (2,692)        
Intangible identified in acquisitions of companies   (11,755)   (2,223)   (2,176)   (16,154)        
Total at 06.30.2025   (14,342)   (2,223)   (2,281)   (18,846)        
Total at 06.30.2024   (8,156)   (1,645)   (1,144)   (10,945)        
                         
                         
    Net book values                
Type of good   At the end   At 12.31.2024                
                     
                         
Goodwill   41,702   35,715                
Intangible identified in acquisitions of companies   67,322   60,031                
Digital assets   2,782   3,424                
Total at 06.30.2025   111,806                    
Total at 06.30.2024   88,689                    
Total at 12.31.2024       99,170                

 

 
38 

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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2025, presented on comparative basis.

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

 

NOTE 11: (Continuation)

11.3 Deferred tax assets and liabilities

 

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

 

    06.30.2025   12.31.2024
Tax loss carryforwards   71   9,002
Property, plant and equipment   162,267   216,922
Financial assets at fair value through profit and loss   -   63
Trade and other receivables   1,022   488
Provisions   55,752   50,448
Tax payables   2,315   1,506
Salaries and social security payable   -   1,157
Defined benefit plans   13,573   10,753
Trade and other payables   6,586   883
Other   -   1,355
Deferred tax asset   241,586   292,577
Property, plant and equipment   -   (30,532)
Intangible assets   (38,365)   (33,477)
Investments in companies   (13,720)   (9,253)
Inventories   (46,862)   (37,074)
Financial assets at fair value through profit and loss   (4,407)   (4,140)
Trade and other receivables   (12,042)   (6,142)
Borrowings   (3,205)   -
Tax payables   -   (319)
Derivative financial instruments   (9,998)   -
Tax inflation adjustment   (29,845)   (59,668)
Other   (2,576)   (501)
Deferred tax liability   (161,020)   (181,106)

 

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

 

    06.30.2025   12.31.2024
Deferred tax asset, net   139,295   161,694
Deferred tax liability, net   (58,729)   (50,223)

 

 

 
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2025, presented on comparative basis.

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

 

NOTE 11: (Continuation)

11.4 Inventories

 

      06.30.2025   12.31.2024
Current          
Materials and spare parts     184,885   165,059
Advances to suppliers     20,639   6,558
In process and finished products     88,526   58,478
Total (1)     294,050   230,095

 

(1) It includes impairment loss for $ 469 million (US$ 0.46 million), $ 32 million (US$ 0.05 million) and $ 22 million (US$ 0.04 million) as of June 30, 2025 and 2024 and December 31, 2024, respectively.

11.5 Provisions

 

    06.30.2025   12.31.2024
Non-current        
Contingencies   71,687   98,546
Asset retirement obligation and wind turbines decommisioning   31,204   25,459
Environmental remediation   22,520   17,431
Total non-current   125,411   141,436
         
Current        
Asset retirement obligation and wind turbines decommisioning   3,928   4,891
Environmental remediation   911   1,034
Other provisions   5,376   4,800
Total current   10,215   10,725
 
40 

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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2025, presented on comparative basis.

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

 

NOTE 11: (Continuation)

 

The evolution of provisions is shown below:

    06.30.2025
    Contingencies   Asset retirement obligation and wind turbines decommisioning   Environmental remediation
             
At the beginning of the year   98,546   30,350   18,465
Increases   16,273   1,623   2,175
Decreases   (1,937)   (1,126)   (1)
Exchange differences on translation   7,932   5,051   3,199
Reversal of unused amounts   (49,127)   (766)   (407)
At the end of the period   71,687   35,132   23,431

 

    06.30.2024
    Contingencies   Asset retirement obligation and wind turbines decommisioning   Environmental remediation
             
At the beginning of the year   88,042   22,238   13,275
Increases   28,101   1,575   844
Decreases   (4)   -   (152)
Exchange differences on translation   11,544   2,945   1,676
Reversal of unused amounts   (54)   (71)   (196)
At the end of the period   127,629   26,687   15,447

 

Provision for legal proceedings

 

In the ongoing files before the National Tax Court regarding gasoline exports, where the tax entity challenges the tariff heading assigned by Petrobras Argentina S.A. during the years 2008-2014, eight additional favorable rulings were passed during the period. Out of the total thirteen rulings in favor of the Company, twelve were sustained by the Tax Authority, therefore becoming final and conclusive. In the remaining case, the term for the Tax Authority to submit an appeal is still pending. Attending to the above-mentioned detailed progress, the Company believes that there are grounds to consider that the associated provision is not probable and, consequently, has recorded, during the period a $ 47,351 million (US$ 44 million) recovery, including accrued interest.

 

In the appeal for partial annulment filed by the Company against the Final Award issued in the international arbitration proceeding initiated by POSA, the latter answered the service of notice, and on July 15, 2025, a hearing was held before the National Chamber of Appeals in Commercial Matters.

 
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2025, presented on comparative basis.

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

 

NOTE 11: (Continuation)

11.6 Income tax and minimum notional income tax provision

 

      06.30.2025   12.31.2024
Non-current          
Income tax     405,706   71,462
Minimum notional income tax     5,777   5,822
Total non-current     411,483   77,284
           
           
Current          
Income tax, net of witholdings and advances     19,732   265,008
Total current     19,732   265,008

NOTE 12: FINANCIAL ASSETS AND LIABILITIES

12.1Financial assets at amortized cost

 

      06.30.2025   12.31.2024
           
Current          
Term deposit     51,012   82,628
Total current     51,012   82,628

 

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

 

 
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2025, presented on comparative basis.

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

 

NOTE 12: (Continuation)

12.2Financial assets at fair value through profit and loss

 

      06.30.2025   12.31.2024
Non-current          
Shares     32,842   28,127
Total non-current     32,842   28,127
           
Current          
Government securities     574,244   714,315
Corporate bonds     160,146   113,947
Shares     61,496   37,671
Mutual funds     18,977   11,690
Total current     814,863   877,623

 

12.3Trade and other receivables

 

  Note   06.30.2025   12.31.2024
Non-current          
Receivables     -   70
Trade receivables     -   70
           
Non-current          
Related parties 16   865   3,889
Advances to suppliers     52,261   44,265
Tax credits     19   8,647
Prepaid expenses     5,174   4,873
Receivables for sale of associates     -   662
Receivables for sale of assets     5,423   9,288
Contractual indemnity receivable     1,470   2,099
Expenses to be recovered     -   2,980
Guarantee deposits     101,331   3
Other     26   22
Other receivables     166,569   76,728
Total non-current     166,569   76,798

 

 
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2025, presented on comparative basis.

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

 

NOTE 12: (Continuation)

 

  Note   06.30.2025   12.31.2024
Current          
Receivables     329,216   177,557
CAMMESA     128,257   110,062
Related parties 16   7,566   10,855
Impairment of financial assets     (3,261)   (833)
Trade receivables, net     461,778   297,641
           
Current          
Related parties 16   8,924   11,216
Tax credits     61,665   8,141
Receivables for complementary activities     -   8,934
Advances to suppliers     4   108
Prepaid expenses     15,087   3,087
Guarantee deposits (1)     112,721   134,111
Expenses to be recovered     14,691   8,544
Insurance to be recovered     1,283   1,279
Receivables for sale of associates     6,603   794
Receivables for sale of assets     5,370   5,160
GasAr Plan     18,808   6,778
Advances to employees     1,085   176
Contractual indemnity receivable     2,303   1,679
Receivable for maintenance contract     1,185   1,386
Impairment of other receivables     (21)   (14)
Other     9,201   14,509
Other receivables, net     258,909   205,888
Total current     720,687   503,529

 

(1)Includes guarantee deposits on derivative financial instruments amounting for $ 111,177 million and $ 46,252 million as of June 30, 2025, and December 31, 2024, respectively.

 

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.

 
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2025, presented on comparative basis.

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

 

NOTE 12: (Continuation)

 

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

 

      06.30.2025   06.30.2024
At the beginning of the year     833   1,203
Impairment     2,563   47,911
Write off for utilization     -   (47,270)
Reversal of unused amounts     (139)   -
Exchange differences on translation     4   53
At the end of the period     3,261   1,897

 

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

 

      06.30.2025   06.30.2024
At the beginning of the year     14   12
Impairment     16   3
Reversal of unused amounts     (10)   (2)
Exchange differences on translation     1   -
At the end of the period     21   13

 

12.4Cash and cash equivalents
      06.30.2025   12.31.2024
Cash     242   1,269
Banks     19,007   75,361
Term deposit     13   47,051
Mutual funds     174,308   637,550
Total     193,570   761,231

 
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2025, presented on comparative basis.

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

 

NOTE 12: (Continuation)

12.5Borrowings

 

      06.30.2025   12.31.2024
Non-current          
Financial borrowings     54,224   32,680
Corporate bonds     1,595,812   1,384,237
Total non-current     1,650,036   1,416,917
           
Current          
Financial borrowings     49,957   125,648
Corporate bonds     217,758   602,448
Total current     267,715   728,096
Total     1,917,751   2,145,013

As of June 30, 2025, and December 31, 2024 the fair value of the Company’s CB amount approximately to $ 1,812,314 million and $ 1,973,130 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 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 indebtedness´ contracts.

 
46 

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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2025, presented on comparative basis.

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

 

NOTE 12: (Continuation)

12.5.1 Borrowings´ evolution:

The evolution of the consolidated borrowings for the six-month periods ended June 30, 2025 and 2024 is disclosed below:

 

      06.30.2025   06.30.2024
Borrowings at the beginning of the year     2,145,013   1,170,539
Proceeds from borrowings     434,160   265,785
Payment of borrowings     (125,482)   (60,169)
Accrued interest     85,556   59,977
Payment of interests     (113,675)   (71,365)
Repurchase and redemption of CB     (804,524)   (66,329)
Result from repurchase of CB     (2,043)   8,114
Foreign currency exchange difference     (697)   (7,547)
Borrowing costs capitalized in property, plant and equipment     1,617   5,947
Exchange differences on translation     297,826   158,641
Borrowings at the end of the period     1,917,751   1,463,593

 

12.5.2 CB Issuance Program and frequent issuer prospectus

On April 7, 2025, the Company’s Ordinary and Extraordinary General Shareholders’ Meeting resolved to approve the increase in the amount of the CB Issuance Program to US$ 2.1 billion or its equivalent in other currencies or units of value. The increase was approved by the CNV on May 27, 2025.

The Company is registered as a frequent issuer, a status that was ratified by CNV’s Issuers’ Management Office Provision No. I-2025-32-APN-GE#CNV dated March 11, 2025. Under this Provision, the CNV also approved (i) the increase in the frequent issuer prospectus amount to US$ 1.3 billion or its equivalent in other currencies or units of value; and (ii) the amendment of the prospectus’ terms and conditions to include the possibility of issuing thematic (social, green and sustainable) marketable securities, all of which was in turn approved by the Company’s Board of Directors at its meeting held on March 5, 2025.

 
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2025, presented on comparative basis.

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

 

NOTE 12: (Continuation)

 

12.5.3 CB

On January 24, 2025, Pampa redeemed all Class 1 CB for a total amount of US$ 353 million, at a redemption price equal to 100% of the outstanding principal amount plus interest accrued and unpaid as of the redemption date, under the terms of the Class 1 CB’s trust agreement.

On February 28, 2025, the Company paid its Class 19 CB upon maturity for a total of $ 17,131 million.

In addition, on May 8, 2025, the Company redeemed all Class 18 Notes for a total amount of US$ 72.1 million at a redemption price equal to 100% of the outstanding principal amount, plus accrued and unpaid interest up to the redemption date.

On May 28, 2025, the Company reopened international Class 23 CB for a face value of US$ 340 million at a 7.875% fixed annual rate and an 8% yield, maturing in December 2034. As a result, the total outstanding face value amounts to US$ 700 million.

The net proceeds were used on June 23, 2025 to early redeem all Class 3 CB for US$ 300 million in principal, plus the redemption premium and the applicable accrued interest. Class 3 CB accrued a 9.125% fixed annual interest rate and matured on April 15, 2029.

Post-closing, on August 6, 2025, the Company issued Class 25 CB for US$ 104.6 million, which will accrue interest at a fixed 7.25% rate and maturing August 6, 2028.

 

12.5.4 Financial borrowings

 

During the six-month period ended June 30, 2025, the Company repaid US$ 47.1 million in net debt with local financial institutions, consisting of: (i) payments of bank debt for US$ 89.5 million, (ii) payments of import financing for US$ 2.6 million, and (iii) bank debt borrowing for US$ 45 million. Post-closing, the Company took out pre-export financing debt for US$ 70 million.

 
48 

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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2025, presented on comparative basis.

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

 

NOTE 12: (Continuation)

12.6Trade and other payables

 

  Note   06.30.2025   12.31.2024
Non-current          
Customer guarantees     29   25
Trade payables     29   25
           
Compensation agreements     86,057   73,702
Leases liability     11,799   11,653
Contractual penalty debt     1,470   2,099
Other     513   513
Other payables     99,839   87,967
Total non-current     99,868   87,992
           
Current          
Suppliers     297,571   212,610
Customer advances     28,813   14,346
Related parties 16   70,248   13,599
Trade payables     396,632   240,555
           
Compensation agreements     -   12,390
Leases liability     4,384   3,754
Contractual penalty debt     1,470   1,679
Various creditors     5,303   3,123
Related parties 16   1   -
Other payables     11,158   20,946
Total current     407,790   261,501

 

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 six-month period ended June 30, 2025, presented on comparative basis.

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

 

NOTE 12: (Continuation)

12.7Fair value of financial instruments

The following table shows the Company’s financial assets and liabilities measured at fair value as of June 30, 2025 and December 31, 2024:

 

As of June 30, 2025   Level 1   Level 2   Level 3   Total
Assets                
Financial assets at fair value through
profit and loss		                
Government securities   574,244   -   -   574,244
Corporate bonds   160,146   -   -   160,146
Mutual funds   18,977   -   -   18,977
Shares   61,496   -   32,842   94,338
Cash and cash equivalents                
Mutual funds   174,308   -   -   174,308
Derivative financial instruments   -   45,748   -   45,748
Other receivables                
Guarantee deposits   234   -   -   234
Total assets   989,405   45,748   32,842   1,067,995
                 
Liabilities                
Derivative financial instruments   -   2   -   2
Total liabilities   -   2   -   2
                 
                 
                 
                 
As of December 31, 2024   Level 1   Level 2   Level 3   Total
Assets                
Financial assets at fair value through
profit and loss		                
Government securities   714,315   -   -   714,315
Corporate bonds   113,947   -   -   113,947
Mutual funds   11,690   -   -   11,690
Shares   37,671   -   28,127   65,798
Cash and cash equivalents                
Mutual funds   637,550   -   -   637,550
Derivative financial instruments   -   979   -   979
Other receivables                
Guarantee deposits   196   -   -   196
Total assets   1,515,369   979   28,127   1,544,475
                 
Liabilities                
Derivative financial instruments   -   2   -   2
Total liabilities   -   2   -   2

 

 

 
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2025, 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 mainly determined using the income-based approach through the “Indirect Cash Flow” method, that is, the net present value of expected future cash flows, mainly through the collection of dividends taking into consideration the direct equity interest of 2.84% and 3.19%, and the additional equity interest of 2.18% and 2.46% through HIDISA and HINISA, in TJSM and TMB, respectively, resulting from the Federal Government’s restructuring of assets in the energy sector. This restructuring resulted in TMB’s and TJSM’s share transfer from the Federal Government to ENARSA.
12.8Hedge accounting

During the first semester of 2025, the Company entered into forward crude oil sale contracts, without physical delivery, and designated a portion of these derivative financial instruments as cash flow hedges.

The Company applies cash flow hedge accounting to certain transactions to manage the international reference price risk associated with a specific volume of forecasted crude oil sales for the May 2025-October 2026 period, thereby ensuring stable cash flows.

As of June 30, 2025, the fair value of forward crude oil sale contracts designated as hedges amounts to an asset of $ 26,643 million (US$ 23 million), recognized in other comprehensive income as the hedge is effective; this amount is expected to be fully reclassified to profit or loss during the July 2025-October 2026 period, as the hedged crude oil sales are recognized in earnings.

The amount reclassified from other comprehensive income to revenue, from designated hedges, generated a $ 2,212 million (US$ 2 million) gain during the second quarter of 2025.

The contracts are entered into in markets or with financial institutions with high credit ratings; therefore, the Company considers that there are no significant credit risks to its operations as a result of its derivative activities.

 
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2025, presented on comparative basis.

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

 

NOTE 13: EQUITY COMPONENTS

13.1Share Capital

As of June 30, 2025, the capital stock amounts to $ 1,364 million, including $ 4 million of treasury shares.

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

 

    06.30.2025
    Share capital   Share capital adjustment
At the beginning of the year 35,932   187,995
Variation of the period 6,252   32,710
At the end of the period 42,184   220,705
         
    12.31.2024
    Share capital   Share capital adjustment
At the beginning of the year 27,854   145,729
Variation of the year 8,078   42,266
At the end of the year 35,932   187,995
 
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2025, 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 operations. Potential common shares will be deemed anti-dilutive when their conversion into common shares may result in an increase in the earnings per share or a decrease in the losses per share of the continuing operations.

The calculation of diluted earnings per share does not entail a conversion, the exercise or another issuance of shares which may have an anti-dilutive effect on the losses per share, and where the option exercise price is higher than the average price of ordinary shares during the period, no dilutive effect is recorded, being the diluted earning per share equal to the basic. As of June 30, 2025 and 2024, the Company does not hold any significant potential dilutive shares, therefore there are no differences with the basic earnings per share.

 

    06.30.2025   06.30.2024
Earning attributable to equity holders of the Company   220,570   313,160
Weighted average amount of outstanding shares   1,360   1,360
Basic and diluted earnings per share   162.18   230.26

 

13.3Distribution of profits

 

Dividends distributed to individuals, undivided estates or foreign beneficiaries derived from profits generated during fiscal years beginning on or after January 1, 2018 are subject to a 7% withholding tax. The distribution of dividends is made based on the Company’s Stand-Alone Financial Statements.

 

The Company may pay and distribute dividends and any other type of profits to its shareholders, except if: (i) there is an event of breach; or (ii) the Company is not in a position to incur debt under the indentures governing the Class 9, Class 21, Class 23 and Additional Class 23 CB. As of the date of issuance of these Consolidated Condensed Interim Financial Statements, the Company has complied with all commitments set forth in the indentures governing the above-mentioned CB.

 

 
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2025, presented on comparative basis.

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

 

NOTE 14: STATEMENT OF CASH FLOWS’ COMPLEMENTARY INFORMATION

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

 

  Note   06.30.2025   06.30.2024
Income tax 10.6   115,125   (121,166)
Accrued interest     72,546   44,333
Depreciations and amortizations 9, 10.1 and 10.2   200,769   131,965
Share of profit from associates and joint ventures 5.1.2   (91,347)   (31,894)
Profit from sale of companies´ interest           -   (5,765)
Results for property, plant and equipment sale and derecognition 10.4   (5)   7
Results for other assets sale and derecognition 10.4   (775)   -
Results for intangible assets sales 10.4   (2,048)   -
Impairment of intangible assets and inventories     776   142
Impairment of financial assets     2,508   49,592
Result from present value measurement 10.5   (1,594)   3,399
Changes in the fair value of financial instruments     (98,541)   (75,509)
Exchange differences, net     (31,240)   5,035
Result from repurchase of CB 10.5   (2,043)   8,114
Costs of concessions agreements completion 10.4   582   2,539
(Recovery) Provision for contingecies, net 10.4   (2,534)   23,172
Provision for environmental remediation 10.4   709   806
Accrual of defined benefit plans 9 and 10.2   6,840   12,797
Compensation agreements 10.2   574   6,242
Earned dividends 10.4   (4)   -
Other     8   (864)
Adjustments to reconcile net profit to cash flows from operating activities     170,306   52,945

 

 

 
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2025, presented on comparative basis.

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

 

NOTE 14: (Continuation)

14.2Changes in operating assets and liabilities

 

      06.30.2025   06.30.2024
Increase in trade receivables and other receivables     (310,052)   (369,488)
Increase in inventories     (23,792)   (24,392)
Increase in trade and other payables     66,873   71,280
(Decrease) Increase in salaries and social security payables     (11,709)   3,122
Defined benefit plans payments     (1,314)   (1,074)
Increase in tax liabilities     13,739   26,664
Decrease in provisions     (4,245)   (916)
Collection for derivative financial instruments, net     2,572   150
Changes in operating assets and liabilities     (267,928)   (294,654)

 

14.3Significant non-cash transactions

 

      06.30.2025   06.30.2024
           
Acquisition of property, plant and equipment through an increase in trade payables     (169,933)   (42,655)
Borrowing costs capitalized in property, plant and equipment     (1,617)   (5,947)
Collection of other receivables through financial assets at fair value through profit and loss     10,463   -
Collection of dividends from joint ventures through financial assets     53,026   -
Payment of borrowings through financial assets at amortized cost transfer     (10,330)   -
Collection of loans granted through intangible assets     1,761   -
Compensation trade receivables through an increase in financial assets at fair value through profit and loss     -   (47,000)

 
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2025, presented on comparative basis.

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

 

NOTE 15: CONTINGENT LIABILITIES AND ASSETS

During the six-month period ended June 30, 2025, the following changes were identified in relation to the contingent liabilities and assets reported in the Consolidated Financial Statements as of December 31, 2024:

15.1 Labor Claim - Compensation Fund

In one of the claims filed on considering that the index (CPI) used to adjust the plan’s benefits is ineffective to keep their “constant value”, the ruling in favor of the Company was upheld.

15.2. Administrative claims

In the complaints filed by CTLL (currently Pampa) against the Federal Government for failure to renew and recognize costs associated with gas supply contracts, on June 13, 2025 a ruling was issued in favor of the Company, awarding it $ 62.8 million and $ 862.9 million for the January 2016 - March 2016 and April 2016 - October 2018 periods, respectively, plus interests. The ruling was appealed by the Federal Government.

 

NOTE 16: RELATED PARTIES´ BALANCES AND TRANSACTIONS

16.1 Balances with related parties

 

As of June 30, 2025   Trade receivables   Other receivables   Trade  payables   Other payables
  Current   Non-current   Current   Current   Current
Associates and joint ventures                    
CTB   355   -   -   -   1
TGS   7,171   865   8,574   18,539   -
Transener   1   -   178   23   -
Other related parties                    
SACDE   39   -   172   51,686   -
    7,566   865   8,924   70,248   1

 

As of December 31, 2024   Trade receivables   Other receivables   Trade  payables
  Current   Non current   Current   Current
Associates and joint ventures                
CTB   168   -   -   -
TGS   10,539   3,889   7,651   11,205
Transener   63   -   148   62
Other related parties                
SACDE   85   -   3,417   2,332
    10,855   3,889   11,216   13,599

 

 

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

 

NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2025, presented on comparative basis.

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

 

NOTE 16: (Continuation)

16.2 Operations with related parties

 

Operations for the six-month period  
Sales of goods and services (1)		   Purchases of goods and services (2)   Fees and compensation for services (3)   Other operating income (expenses), net (4)
  2025   2024   2025   2024   2025   2024   2025   2024
Associates and joint ventures                                
CTB   891   691   -   -   -   -   -   -
TGS   27,203   22,685   (53,026)   (29,229)   -   -   -   -
Transener   -   -   (26)   (23)   -   -   309   176
                                 
Other related parties                                
Fundación   -   -   -   -   -   -   (1,082)   (632)
SACDE   -   -   (155,922)   (55,988)   (1,551)   (125)   265   152
Salaverri, Dellatorre, Burgio & Wetzler   -   -   -   -   (214)   (49)   -   -
Other   -   -   -   (1)   -   -   -   -
    28,094   23,376   (208,974)   (85,241)   (1,765)   (174)   (508)   (304)

 

(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 $ 53,052 million and $ 29,253 million and infrastructure works contracted to SACDE charged in property, plant and equipment for $ 155,895 million and $ 55,988 million, of which $ 42,081 million and $ 11,198 million, correspond to fees and general expenses calculated on the costs incurred by SACDE and/or Pampa to carry the works out for the six-month periods ended June 30, 2025 and 2024, respectively.
(3)Disclosed within administrative expenses.
(4)Correspond mainly to donations expenses and operating leases income.

 

Operations for the six

month period

   Financial income (1)   Financial expenses (2)   Dividends collection   Dividends distributed
  2025   2024   2025   2024   2025   2024   2025   2024
Associates and joint ventures                                
CIESA   -   -   -   -   53,026   -   -   -
OCP   -   -   -   -   -   6,955   -   -
TGS   428   558   -   -   -   -   -   -
Transener   -   8   -   -   -   -   -   -
                                 
Other related parties                                
Other   -   -   -   (3)   4   -   -   (37)
    428   566   -   (3)   53,030   6,955   -   (37)

 

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

 

NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2025, presented on comparative basis.

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

 

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

 

  Type   Amount in currencies other than pesos   Exchange rate (2)   Total
06.30.2025		   Total
12.31.2024
       
ASSETS                  
                   
NON-CURRENT ASSETS                  
Financial assets at fair value through profit and loss US$   -    -   -    2,145
Other receivables US$    133.91    1,205.00    161,361    63,193
Total non-current assets              161,361    65,338
                   
CURRENT ASSETS                  
                   
Financial assets at fair value through profit and loss US$    528.73    1,205.00    637,123    781,575
  BRL    289.95   221.75    64,296   -
Financial assets at amortized cost US$    42.33    1,205.00    51,012    82,628
Derivative financial instruments US$    37.96    1,205.00    45,739   968
Trade and other receivables US$    273.26    1,205.00    329,281    217,113
  CLP   5,724.36    1.29    7,390    2,572
  U$    0.03    30.47    1    5
Cash and cash equivalents US$    120.37    1,205.00    145,040    704,730
  CLP    231.65    1.29   299    4
  BOB    0.01   173.76    1    1
Total current assets              1,280,182    1,789,596
Total assets              1,441,543    1,854,934
                   
LIABILITIES                  
                   
NON-CURRENT LIABILITIES                  
Provisions US$    82.56    1,205.00    99,479    118,979
Borrowings US$   1,369.32    1,205.00    1,650,036    1,416,917
Other payables US$    82.45    1,205.00    99,355    87,479
Total non-current liabilities               1,848,870    1,623,375
                   
CURRENT LIABILITIES                  
Provisions US$    3.97    1,205.00    4,784    5,926
Tax liabilities US$    0.02    1,205.00    25    2
  CLP   1,118.95    1.29    1,445   -
Salaries and social security payable  US$   -    1,205.00   -   199
  CLP    1.98    1.29    3    1
Borrowings US$    222.17    1,205.00    267,715    710,502
Trade and other payables US$    259.12    1,205.00    312,234    174,544
  EUR    3.20    1,420.21    4,545    2,263
  CLP    215.33    1.29   278   639
  SEK    0.02   127.16    2   423
  BOB    0.03   173.76    5   -
  U$    0.21    30.47    6    4
Total current liabilities               591,042    894,503
Total liabilities               2,439,912    2,517,878
Net Position Liability              (998,369)    (662,944)

 

(1)Information presented to comply with CNV Rules.
(2)Exchange rate in force on June 30, 2025 according to the BNA for U.S. dollars (US$), euros (EUR), chilean pesos (CLP), swedish crowns (SEK), bolivian pesos (BOB), brazilian reais (BRL) and uruguayan pesos (U$).
 
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2025, presented on comparative basis.

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

 

NOTE 18: INVESTMENT COMMITMENTS

Rincón de Aranda Development – RDA Midstream Project

On July 1, 2025, Pampa Energía —through its “Pampa Energía_ S.A. - Sucursal Dedicada Midstream RDA” Dedicated Branch, established on May 12, 2025 by the Company’s Board of Directors, submitted its application to opt into the RIGI to develop an oil and gas treatment plant at its Rincón de Aranda field. The project contemplates an estimated US$ 426 million investment, and its entry into operation is scheduled for 2026. Starting in 2027, the Company expects to export crude oil, in line with the strategy to develop Vaca Muerta and strengthen export capacity.

FLNG Project

On May 2, 2025, all conditions precedent to move forward with the FLNG Project were satisfied, including, but not limited to: (i) the final investment decision regarding the “Hilli Episeyo” vessel (“Hilli”); (ii) the submission of the RIGI opt-in application; and (iii) the granting of the LNG Free Export Authorization certificate.

In addition to Hilli, a second vessel, “MKII”, was added to the project. Both will have a processing and export capacity of approximately 6 million tons of LNG per year, equivalent to 27 million m3/d of natural gas, which will position Argentina in the global LNG market and represent an investment of approximately US$ 7 billion over the 20 years of operation across the entire value chain.

Hilli and MKII operations are expected to start at the end of 2027 and 2028, respectively.

The consortium is made up of 20% Pampa, 30% Pan American Energy S.L. (“PAE”), 25% YPF S.A., through its subsidiary Sur Inversiones Energéticas S.A.U. (“SUR”), 15% Wintershall DEA Argentina S.A. (“Wintershall”) and 10% Golar FLNG Sub-Holding Company Limited (“Golar Subholding”), all of which are SESA shareholders.

To supply natural gas to the vessels, SESA entered into 20-year natural gas supply contracts with Pampa, PAE, SUR and Wintershall regarding their participation in SESA. In this respect, for both vessels to operate year-round, SESA contemplates the construction of a dedicated gas pipeline between the province of Neuquén and the Gulf of San Matías in Río Negro.

NOTE 19: INCIDENT AT HINISA

Regarding the severe storm recorded on January 11, 2025 in the Province of Mendoza, which caused significant damage to the Nihuil II and III power plants and forced them out of service, HINISA began the cleanup and remediation process, started repairing perimeter fences and building closures, and initiated the process of sorting materials and tools salvaged from the incident for their classification and disposal with the insurance company. Progress is also being made in awarding the contract for the identification and assessment of damage to the affected equipment.

 

 
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2025, presented on comparative basis.

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

 

NOTE 19: (Continuation)

During the six-month period ended June 30, 2025, HINISA recorded $ 2,027 million losses corresponding to incident-related costs.

Besides, HINISA has filed the corresponding claim with the insurance companies and, as of June 30, 2025, has received advances of $ 2,813, which disclosed under insurance recovery line item, to carry out the cleanup tasks necessary to determine the final damages and costs.

As of the date of issuance of these Consolidated Condensed Interim Financial Statements, the final cost of the incident and the amount of insurance proceeds have not yet been assessed by HINISA.

NOTE 20: TERMINATION OF HYDROELECTRIC CONCESSIONS

On March 8, 2025, the Federal Government and the province of Mendoza signed an agreement to jointly conduct the national and international open call for tenders for the concession of the Diamante and Nihuiles Hydroelectric Complexes as a single business unit. The coordination and execution of this tender process was delegated to the Public Enterprises Transformation Agency, which, within a maximum 60 business days’ period, would transfer 51% of the share package of the company becoming the concessionaire and owner of the assets.

Subsequently, on June 5, 2025, SE Resolution No. 240/25 extended the transition period for the HIDISA concession until October 19, 2025.

Additionally, on May 26, 2025, Provincial Law No. 9,630 was published, declaring a state of emergency for the Los Nihuiles Hydroelectric System over a 14-month period from its enactment. The Law provides for the continuity of the transition period until verification of compliance with the obligations arising from the concession contract with HINISA, without prejudice to any authorizations that must be granted by the Federal Government.

It is worth highlighting that HINISA has fully and timely complied with its obligations throughout the term of the concession contract and the transition period; and that, as of the date of issuance of these Consolidated Financial Statements, the Federal Government has not issued any statement or granted the required authorizations.

In these circumstances, at the end of the contractual transition period on June 1, 2025, HINISA notified both the Ministry of Energy and Environment of the Province of Mendoza and the SE that the extension of the transition period beyond the term stipulated in the contract requires an agreement with the concessionaire. However, to protect the concession’s assets, avoid affecting the supply of electricity in the WEM and ensure the safety of property and persons, HINISA informed that it would continue operating the Los Nihuiles Hydroelectric Complex, without this implying consent to any unilateral extension of the transition period, the assumption of additional obligations or responsibilities, or the waiver of its rights.

Finally, it is worth highlighting that HINISA is willing to proceed with the assets’ handover as soon as the competent authorities so decide and/or to execute the necessary agreements given this extraordinary situation.

 
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS (Continuation)

For the six-month period ended June 30, 2025, presented on comparative basis.

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

 

NOTE 21: DOCUMENTATION SAFEKEEPING

In compliance with General Resolution No. 629/14, the Company discoloses that it has 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 22: SUBSEQUENT EVENTS

After June 30, 2025 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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