PAM Pampa Energia SA

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

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FORM 6-K

 

REPORT OF FOREIGN ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER

SECURITIES EXCHANGE ACT OF 1934

 

For the month of August, 2024

(Commission File No. 001-34429),

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PAMPA ENERGIA S.A.
(PAMPA ENERGY INC.)

 

 

Argentina

(Jurisdiction of incorporation or organization)

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Maipú 1
C1084ABA
City of Buenos Aires
Argentina

(Address of principal executive offices)

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(Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.)

Form 20-F ___X___ Form 40-F ______

(Indicate by check mark whether the registrant by furnishing the
information contained in this form is also thereby furnishing the
information to the Commission pursuant to Rule 12g3-2(b) under
the Securities Exchange Act of 1934.)

Yes ______ No ___X___

(If "Yes" is marked, indicate below the file number assigned to the
registrant in connection with Rule 12g3-2(b): 82- .)

 

This Form 6-K for Pampa Energía S.A. (“Pampa” or the “Company”) contains:

Exhibit 1: Unaudited Consolidated Condensed Interim Financial Statements as of June 30, 2024

Exhibit 2: Six-month period ended June 30, 2024 compared to the six-month period ended June 30, 2023

 

 

 

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: August 26, 2024

 

Pampa Energía S.A.
By:	/s/ Gustavo Mariani
Name:	Gustavo Mariani
Title:	Chief Executive Officer

 

FORWARD-LOOKING STATEMENTS

This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates of future economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.

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

 

 

 

 

UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS

 

AS OF JUNE 30, 2024

AND FOR THE SIX AND THREE-MONTH PERIODS THEN ENDED

PRESENTED ON COMPARATIVE BASIS

 

 

GLOSSARY OF TERMS

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

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

GLOSSARY OF TERMS: (Continuation)

 

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

 

 

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

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

 

 

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

 

 

 

 

UNAUDITED CONSOLIDATED CONDENSED INTERIM

STATEMENT OF COMPREHENSIVE INCOME (Continuation)

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

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

 

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

 

 

 

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

 

UNAUDITED CONSOLIDATED CONDENSED INTERIM STATEMENT

OF FINANCIAL POSITION

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

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

 

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

 

 

 

UNAUDITED CONSOLIDATED CONDENSED INTERIM STATEMENT

OF FINANCIAL POSITION (Continuation)

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

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

 

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

 

 

 

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

 

UNAUDITED CONSOLIDATED CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY

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

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

 

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

 

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

 

UNAUDITED CONSOLIDATED CONDENSED INTERIM STATEMENT OF CASH FLOWS

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

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

 

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

 

 

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

 

NOTE 1: GENERAL INFORMATION

General information of the Company

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

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

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

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

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

NOTE 2: REGULATORY FRAMEWORK

2.1

Generation

2.1.1

Supply Agreements with CAMMESA

"TerCONF" call for tenders

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

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

2.1.2 Remuneration for sales to the spot market

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

2.1.3 Modification of CAMMESA’s payment priority

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

2.1.4 Payment agreement with CAMMESA

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

2.1.5 Electric Power Regime

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

i)

it unifies the ENRE and ENARGAS as a single regulatory entity;

ii)

it empowers the PEN to adjust, within the term of the declared emergency, the electric power regulatory framework comprised of Acts No. 15,336 and No. 24,065 to:

-

promote the opening of international electricity trade;

-

ensure free commercialization and maximum competition in the industry, guaranteeing end users the free choice of supplier;

-

promote the economic dispatch for energy transactions based on the grid’s hourly economic cost, taking into consideration its time-based marginal cost and energy not supplied;

-

adjust the energy grid’s tariffs based on actual supply costs to cover investment needs and guarantee the utilities’ continuous and regular supply;

-

make explicit the different items payable by the end user, with the express obligation on the distributor to act as a collection or withholding agent for the amounts collectable for energy, transportation and taxes corresponding to the WEM and the fiscal authority, as applicable; and

-

guarantee the development of electricity transmission infrastructure through open, transparent, efficient and competitive mechanisms.

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

 

NOTE 2: (Continuation)

2.2

Oil and Gas

2.2.1 Hydrocarbons Regime

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

-

it sets commercialization prices in the domestic market without the PEN’s intervention;

-

it provides for the free international trade of hydrocarbons, in the absence of objections by the SE;

-

it rules out the possibility of requesting extensions to the exploitation concessions and requires a new call for tenders for awarding existing concessions at least one year before their expiration;

-

it eliminates the concessionaire’s obligation to ensure the maximum production of hydrocarbons by observing criteria guaranteeing a proper preservation of reserves;

-

the PEN or the Province may grant licenses to process hydrocarbons and their derivatives, and build and operate conditioning plants, hydrocarbon separation plants, natural gas liquefaction plants and other necessary facilities and accessories, without them being necessarily linked to an exploitation concession;

-

it incorporates Standard Tender Specifications prepared by the provincial Enforcement Authorities and the SE as a basis for new calls; tenderers will compete on the value of the royalty over a 15% base value;

-

it establishes levy values payable in each stage taking as a reference the average oil barrel price, annually adjustable based on the Brent benchmark;

-

it admits applications for the reconversion of conventional into unconventional concessions only until December 31, 2028, with a one-time term of 35 years as from the reconversion application date;

-

it replaces transportation concessions with transportation authorizations;

-

the PEN may grant an authorization for the underground storage of natural gas in depleted natural hydrocarbon reservoirs; these authorizations will not be time-bound or subject to the payment of exploitation bonds; the stored gas will only pay royalties at the time of its first commercialization.

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

-

it abrogates the article that declared hydrocarbons self-supply of national public interest;

-

it modifies the principles of the hydrocarbons policy, eliminating references to domestic hydrocarbons self-supply, consumer protection regarding the price of hydrocarbon derivatives and the obtaining of exportable hydrocarbon balances to improve the balance of payments.

NOTE 2: (Continuation)

2.2.2 Gas market

Accession to Plan GasAr’s payment cancellation scheme

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

Natural Gas Exports

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

2.3

Gas Transportation

 

Transitional increase in natural gas transportation tariffs

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

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

NOTE 2: (Continuation)

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

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

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

License extension application

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

2.4

Transmission

Tariff situation

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

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

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

 

 

NOTE 2: (Continuation)

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

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

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

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

2.5 Tax regulations

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

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

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

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

 

NOTE 3: BASIS OF PREPARATION

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

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

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

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

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

Comparative information

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

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

NOTE 4: ACCOUNTING POLICIES

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

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

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

NOTE 4: (Continuation)

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

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

-

IAS 1 - “Presentation of Financial Statements” (as amended in January 2020 and October 2022)

-

IFRS 16 - “Leases” (as amended in September 2022)

-

IAS 7 - “Statement of Cash Flows” and IFRS 7 - “Financial Instruments - Disclosures” (as amended in May 2023)

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

NOTE 5: GROUP STRUCTURE

5.1

Corporate reorganization

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

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

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

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

NOTE 5: (Continuation)

5.2

Interest in subsidiaries, associates and joint ventures

5.2.1

Subsidiaries information

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

⁽¹⁾ See note 5.1 

 

NOTE 5: (Continuation)

5.2.2

Associates and joint ventures information

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

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

 

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

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

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

NOTE 5: (Continuation)

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

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

 

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

 

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

 

NOTE 5: (Continuation)

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

 

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

 

5.2.3

Investment in OCP

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

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

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

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

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

NOTE 5: (Continuation)

Concession termination

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

Contingent liabilities in OCPSA

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

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

5.2.4

Investment in CTB

Impairment of non-financial assets

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

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

NOTE 5: (Continuation)

5.2.5

Investment in CIESA - TGS

Issuance of CB in TGS

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

5.3

Oil and gas participations

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

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

 

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

NOTE 6: RISKS
 

6.1 Critical accounting estimates and judgments

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

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

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

Impairment of non-financial assets

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

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

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

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

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

 

6.2 Financial risk management

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

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

 

NOTE 7: SEGMENT INFORMATION

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

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

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

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

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

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

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

NOTE 7: (Continuation)

 

 

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

 

NOTE 7: (Continuation)

 

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

 

 

NOTE 7: (Continuation)

 

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

 

NOTE 7: (Continuation)

 

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

 

NOTE 8: REVENUE

 

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

 

 

(1)

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

 

NOTE 9: COST OF SALES

 

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

 

NOTE 10: OTHER ITEMS OF THE STATEMENT OF COMPREHENSIVE INCOME

 

10.1 Selling expenses

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

10.2 Administrative expenses

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

 

10.3 Exploration expenses

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

 

NOTE 10: (Continuation)

10.4 Other operating income and expenses

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

 

 

NOTE 10: (Continuation)

 

10.5 Financial results

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

 

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

NOTE 10: (Continuation)

10.6 Income tax

 

The breakdown of income tax charge is:

 

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

 

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

 

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

 

NOTE 11: NON-FINANCIAL ASSETS AND LIABILITIES

11.1

Property, plant and equipment

 

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

 

 

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

NOTE 11: (Continuation)

 

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

 

 

NOTE 11: (Continuation)

11.2 Intangible assets

 

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

(1)

Recoverable value based on the market value of digital assets.

NOTE 11: (Continuation)

11.3 Deferred tax assets and liabilities

 

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

 

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

 

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

 

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

 

 

NOTE 11: (Continuation)

11.4 Inventories

 

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

 

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

11.5 Provisions

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

 

 

NOTE 11: (Continuation)

 

The evolution of provisions is shown below:

 

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

 

 

 

11.5.1 Provision for lawsuits and contingencies

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

 

NOTE 11: (Continuation)

11.6 Income tax and minimum notional income tax provision 

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

NOTE 12: FINANCIAL ASSETS AND LIABILITIES

12.1

Financial assets at amortized cost

 

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

 

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

 

NOTE 12: (Continuation)

12.2

Financial assets at fair value through profit and loss

 

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

 

12.3

Trade and other receivables

 

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

 

NOTE 12: (Continuation)

 

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

 

 

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

NOTE 12: (Continuation)

 

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

 

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

 

 

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

 

			06.30.2024		06.30.2023
At the beginning of the year			12		38
Impairment			3		6
Reversal of unused amounts			(2)		(24)
Exchange differences on translation			-		7
At the end of the period			13		27

12.4

Cash and cash equivalents

			06.30.2024		12.31.2023
Cash			183		162
Banks			17,963		24,815
Mutual funds			120,368		112,996
Total			138,514		137,973

NOTE 12: (Continuation)

12.5

Borrowings

 

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

 

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

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

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

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

NOTE 12: (Continuation)

12.5.1 Loans´evolution:

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

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

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

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

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

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

 

12.5.3 Bank loans

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

NOTE 12: (Continuation)

12.6

Trade and other payables

 

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

 

 

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

NOTE 12: (Continuation)

12.7

Fair value of financial instruments

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

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

 

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

 

 

NOTE 12: (Continuation)

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

-

Derivative Financial Instruments: calculated from variations between market prices at the closing date of the period, and the amount at the time of the contract.

-

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

NOTE 13: EQUITY COMPONENTS

13.1

Share Capital

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

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

 

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

 

 

NOTE 13: (Continuation)

13.2

Earning per share

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

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

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

 

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

 

 

NOTE 14: STATEMENT OF CASH FLOWS’ COMPLEMENTARY INFORMATION

14.1

Adjustments to reconcilie net profit to cash flows from operating activities

 

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

 

 

 

NOTE 14: (Continuation)

14.2

Changes in operating assets and liabilities

 

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

 

14.3

Significant non-cash transactions

 

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

 

 

NOTE 15: CONTINGENT LIABILITIES AND ASSETS

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

15.1 Environmental claims

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

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

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

 

15.2 Administrative claims

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

 

15.3 Civil and Commercial Claims 

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

 

NOTE 16: RELATED PARTIES´ BALANCES AND TRANSACTIONS

16.1 Balances with related parties

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

 

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

 

 

NOTE 16: (Continuation)

16.2 Operations with related parties

 

Operations for the  six-month period		Sales of goods and services (1)				Purchases of goods and services (2)				Fees for services (3)				Other operating income (expenses), net (4)
		2024		2023		2024		2023		2024		2023		2024		2023
Associates and joint ventures
CTB		691		236		-		-		-		-		-		-
TGS		22,685		5,223		(29,229)		(5,064)		-		-		-		-
Transener		-		-		(23)		(13)		-		-		176		43
Other related parties
Fundación		-		-		-		-		-		-		(632)		(223)
SACDE		-		-		(55,988)		(5,820)		(125)		-		152		28
Salaverri, Dellatorre, Burgio & Wetzler		-		-		-		-		(49)		(74)		-		-
Other		-		-		(1)		(16)		-		-		-		-
		23,376		5,459		(85,241)		(10,913)		(174)		(74)		(304)		(152)

 

(1)

Correspond mainly to advisory services provided in relation with technical assistance and sales of gas.

(2)

Correspond to natural gas transportation services, purchases of refined products and other services imputed to cost of sales for $ 29,253 million and $ 5,093 million and infrastructure works contracted to SACDE charged in property, plant and equipment for $ 55,988 million and $ 5,820 million, of which $ 11,198 million and $ 1,222 million, correspond to fees and general expenses calculated on the costs incurred by SACDE and/or Pampa to carry the works out for the six-month periods ended June 30, 2024 and 2023, respectively.

(3)

Disclosed within administrative expenses.

(4)

Correspond mainly to donations expenses and operating leases income.

 

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

  

(1)

Correspond mainly to financial leases and accrued interest on loans granted.

(2)

Correspond to interest and commissions on loans received.

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

 

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

 

(1)

Information presented to comply with CNV Rules.

(2)

Exchange rate in force on June 30, 2024 according to the BNA for U.S. dollars (US$), Euros (EUR), Yuans R. China (CNY), Chilean pesos (CLP), Swedish crowns (SEK), Pounds sterling (GBP) and Uruguayan pesos (U$).

NOTE 18: INVESTMENT COMMITMENTS

New generation projects

PEPE VI

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

NOTE 19: TERMINATION OF HYDROELECTRIC CONCESSIONS

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

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

NOTE 20: DOCUMENTATION SAFEKEEPING

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

-

Azara 1245 – C.A.B.A.

-

Don Pedro de Mendoza 2163 –C.A.B.A.

-

Amancio Alcorta 2482 C.A.B.A.

-

San Miguel de Tucumán 601, Carlos Spegazzini, Municipality of Ezeiza, Province of Buenos Aires.

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

NOTE 21: SUBSEQUENT EVENTS

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

 

 

 

The Company is a fully integrated energy company in Argentina participating in the electricity, oil and gas value businesses.

 

Through our own activities, subsidiaries and shareholdings in joint ventures and based on the business nature, customer portfolio and risks involved, we operate our businesses through the following reportable business segments:

 

●

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

 

●

Oil and Gas, consisting of our own interests in oil and gas areas and through our direct interests in Comercializadora e Inversora S.A. (until a 2024 corporate reorganization) and PECSA;

 

●

Petrochemicals, comprised of our own styrene operations and the catalytic reformer plant operations conducted in Argentina;

 

●

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

 

The Company manages its operating segments based on its individual net profit in U.S. dollars.

 

 

Six-month period ended June 30, 2024 compared to the six-month period ended June 30, 2023

Generation Segment

		Generation (in millions of U.S.$)
		For the six-month period ended
		June 30, 2024	June 30, 2023	Variation	%
Revenue		322	344	(22)	(6 %)
Cost of sales		(158)	(181)	23	(13%)
Gross profit		164	163	1	1%
Selling expenses		(1)	(1)	-	-
Administrative expenses		(25)	(26)	1	(4%)
Other operating income and expenses, net		25	21	4	19%
Share of (loss) profit from joint ventures		(38)	5	(43)	(860%)
Impairment of financial assets		(46)	-	(46)	100%
Operating income		79	162	(83)	(51%)
Financial income		2	1	1	100%
Financial costs		(28)	(66)	38	(58%)
Other financial results		80	124	(44)	(35%)
Financial results, net		54	59	(5)	(8%)
Profit before income tax		133	221	(88)	(40%)
Income tax		100	(21)	121	(576%)
Profit of the period		233	200	33	17%
Owners of the company		233	200	33	17%
Non-controlling interest		-	-	-	-

Revenue

Revenue from our generation segment decreased 6%, to U.S.$322 million in the six-month period ended June 30, 2024, compared to U.S.$344 million in the six-month period ended June 30, 2023.

 

This variation is mainly explained by lower Energy Plus demand and prices, due to the decline in industrial activity and our divestment of Greenwind in August 2023. These effects were partially offset by an increase in renewable generation due to higher water resource availability in our hydroelectric plants and the completion of commissioning of PEPE IV in June 2023.

 

Power generation during the six-month period ended June 30, 2024 decreased by 4%, to 8,756 GWh compared to 9,084 GWh for the six-month period ended June 30, 2023, mainly due to lower dispatch of our thermal units, partially offset by higher renewable generation.

 

The following table shows net power generation and sales (in GWh) for our power generation plants:

	For the six-month period ended
	June 30, 2024		June 30, 2023
	Net generation (In GWh)	Installed capacity (In Mw)	Net generation (In GWh)	Installed capacity (In Mw)
Hydroelectric	1,101	938	653	938
Wind	502	332	597	387
Thermal	7,153	4,107	7,834	4,107
Total	8,756	5,377	9,084	5,432

Cost of Sales

Cost of sales decreased by 13% to U.S.$158 million for the six-month period ended June 30, 2024, compared to U.S.$181 million for the six-month period ended June 30, 2023, mainly explained by lower electricity purchases to comply with our obligations set forth in supply contracts and lower maintenance expenses.

Gross Profit

Gross profit from our generation segment did not vary significantly, amounting to U.S.$164 million and U.S.$163 million, for the six-month periods ended June 30, 2024 and 2023, respectively.

Moreover, in the six-month period ended June 30, 2024, the gross margin in relation to sales increased to 51%, compared to 47% for the six-month period ended June 30, 2023.

Selling Expenses

Selling expenses from our generation segment amounted to U.S.$1 million for both six-month periods ended June 30, 2024 and 2023.

Administrative Expenses

Administrative expenses from our generation segment did not vary significantly, amounting to U.S.$25 million for the six-month period ended June 30, 2024, compared to U.S.$26 million for the six-month period ended June 30, 2023. This variation is mainly due to lower labor costs.

Other Operating Income and Expenses, Net

Other operating income and expenses, net from our generation segment increased to a U.S.$25 million gain for the six-month period ended June 30, 2024, compared to a U.S.$21 million gain for the six-month period ended June 30, 2023. This variation is mainly due to insurance recoveries in Genelba and PEPE III recorded in 2024.

Share of (loss) profit from joint ventures

The share of (loss) profit from joint ventures from our generation segment amounted to a U.S.$38 million loss for the six-month period ended June 30, 2024, compared to a U.S.$5 million profit for the six-month period ended June 30, 2023. This variation is mainly explained by the impairment of property, plant and equipment recorded by CTB in 2024.

Impairment of financial assets

Our generation segment recorded an impairment of financial assets of U.S.$46 million for the six-month period ended June 30, 2024, while no impairment was recorded for the six-month period ended June 30, 2023. This variation is explained by the agreement entered into with CAMMESA instrumenting the exceptional, transitional and unique payment system established in SE Resolution No. 58/24 for the balance of unpaid economic transactions in the wholesale electricity market, including: (i) the December 2023 and January 2024 transactions that were settled with sovereign bonds valued at U.S.$0.65 per U.S. dollar of face value in the domestic market; and (ii) the February 2024 transaction that was settled in cash. Both payments did not recognize accrued interest, and as a result, the Company recorded a U.S.$46 million impairment in the related receivables of CAMMESA.

Operating Income

 

Operating income from our generation segment decreased by U.S.$83 million (51%), to U.S.$79 million for the six-month period ended June 30, 2024, compared to U.S.$162 million for the six-month period ended June 30, 2023. This variation is mainly attributable to: (i) the share of loss from joint ventures, and (ii) the impairment in CAMMESA’s receivables described above, recorded in 2024.

The operating margin in relation to sales for the six-month period ended June 30, 2024, decreased to 25% compared to a 47% for the six-month period ended June 30, 2023.

Financial Results, net

Financial results, net, amounted to a U.S.$54 million gain for the six-month period ended June 30, 2024, compared to U.S.$59 million gain for the six-month period ended June 30, 2023. This decrease is mainly due to lower gains from changes in the fair value of financial instruments, partially offset by lower financial interest expenses in line with lower peso denominated debt stock and lower exchange differences losses over the monetary position in Pesos.

Income Tax

The generation segment recorded an income tax benefit of U.S.$100 million for the six-month period ended June 30, 2024, compared to a tax charge of U.S.$21 million for the six-month period ended June 30, 2023. The variation is mainly related to non-cash credit on deferred income tax due to an inflation higher than the Argentine peso devaluation.

Profit of the period

As a result of the foregoing, the generation segment recorded a U.S.$233 million profit for the six-month period ended June 30, 2024, compared to U.S.$200 million profit for the six-month period ended June 30, 2023, both of which were entirely attributable to the owners of the Company.

 

Oil and Gas Segment

		Oil and Gas (in millions of U.S.$)
		For the six-month period ended
		June 30, 2024	June 30, 2023	Variation	%
Revenue		368	341	27	8%
Cost of sales		(234)	(198)	(36)	18%
Gross profit		134	143	(9)	(6%)
Selling expenses		(29)	(25)	(4)	16%
Administrative expenses		(36)	(38)	2	(5%)
Exploration expenses		-	(7)	7	(100%)
Other operating income and expenses, net		28	12	16	133%
Impairment of financial assets		(10)	-	(10)	100%
Operating income		87	85	2	2%
Financial income		-	1	(1)	(100%)
Financial costs		(49)	(97)	48	(49%)
Other financial results		(14)	25	(39)	(156%)
Financial results, net		(63)	(71)	8	(11%)
Profit before income tax		24	14	10	71%
Income tax		51	-	51	100%
Profit of the period		75	14	61	436%
Owners of the company		75	14	61	436%
Non - controlling interest		-	-	-	-

 

Revenue

Revenue from our oil and gas segment increased 8%, to U.S.$368 million for the six-month period ended June 30, 2024, compared to U.S.$341 million for the six-month period ended June 30, 2023. This variation is mainly explained by a substantial growth in gas production, boosted by the round 4.2 of GasAr Plan, in which we were awarded a maximum flat volume of 4.8 million m³ per day to be evacuated through the Nestor Kirchner Pipeline and cooler temperatures compared to 2023, partially offset by lower gas volumes and prices sold to Chile and industrial sectors.

The average sale price for gas was U.S.$3.7/MBTU for the six-month period ended June 30, 2024, 16% lower than U.S.$4.4/MBTU recorded in the six-month period ended June 30, 2023, mainly explained by lower export and industrial customers’ demand. The average sale price for oil was U.S.$70/bbl for the six-month period ended June 30, 2024, 6% higher than average sale price for the six-month period ended June 30, 2023, in line with the increase of the international price of Brent, which is the main reference for the company’s oil sale prices.

The following table shows our production and sales for the oil and gas segment for the periods shown:

	For the six-month period ended
	June 30, 2024	June 30, 2023
Production
Oil (k bbl/day)	4.9	5.1
Gas (k m3/day)	13.1	9.7
Total (k boe/day)	82.0	62.4
Sales
Oil (k bbl/day)	4.5	5.7
Gas (k m3/day)	13.2	9.8
Total (k boe/day)	82.0	63.2

Cost of Sales

The cost of sales from our oil and gas segment increased by 18%, from U.S.$198 million for the six-month period ended June 30, 2023 to U.S.$234 million for the six-month period ended June 30, 2024. The variation is mainly due to higher property, plant and equipment depreciation, higher royalty charges in line with the increase in sale volumes, and higher costs related to the increase in gas activity (maintenance and contractors).

Gross Profit

Gross profit from our oil and gas segment decreased by 6%, from U.S.$143 million in the six-month period ended June 30, 2023, to U.S.$134 million for the six-month period ended June 30, 2024. This variation is explained by higher costs and lower average sale prices, partially offset by higher sale volumes.

Additionally, the gross margin on sales decreased to 36% in the six-month period ended June 30, 2024, compared to 42% for the six-month period ended June 30, 2023.

Selling Expenses

Selling expenses from our oil and gas segment increased to U.S.$29 million for the six-month period ended June 30, 2024, compared to U.S.$25 million for the same period in 2023 due to increased gas transportation expenses and taxes mainly explained by higher gas sale volumes.

Administrative Expenses

Administrative expenses from our oil and gas segment decreased by 5%, amounting to U.S.$36 million for the six-month period ended June 30, 2024, compared to U.S.$38 million for the six-month period ended June 30, 2023, mainly due to lower salaries expenses.

Exploration expenses

Exploration expenses from our oil and gas segment amounted to U.S.$7 million for the six-month period ended June 30, 2023, due to decision to relinquish the Rio Atuel block, whereas no charges were recorded for the six-month period ended June 30, 2024.

Other Operating Income and Expenses, net

Other operating incomes and expenses, net from our oil and gas segment recorded gains of U.S.$28 million for the six-month period ended June 30, 2024, compared to U.S.$12 million for the six-month period ended June 30, 2023, mainly due to higher commercial interests accrued and Gas Plan income.

 

Impairment of financial assets

Our oil and gas segment recorded an impairment of financial assets of U.S.$10 million, for the six-month period ended June 30, 2024, while no impairment was recorded for the same period ended June 30, 2023. This variation is explained by the impairment of U.S.$8 million of CAMMESA’s receivables and U.S.$2 million of Gas Plan receivables recorded considering the market value of financial instruments, received under the agreed cancellation methodology set in SE Resolution No. 58/24 and Note NO-2024-54277417- APN-SE#MEC, respectively.

Operating Income

The operating income from our oil and gas segment did not vary significantly, amounting to U.S.$87 million for the six-month period ended June 30, 2024 and U.S.$85 million for the six-month period ended June 30, 2023.

The operating margin in relation to sales for the six-month period ended June 30, 2024, decreased to 24% compared to 25% for the six-month period ended June 30, 2023.

Financial Results, Net

Financial results, net from our oil and gas segment amounted to a U.S.$63 million loss for the six-month period ended June 30, 2024, compared to a U.S.$71 million loss for the six-month period ended June 30, 2023, mainly due to lower financial interest expenses, partially offset by lower gains from changes in the fair value of financial instruments.

Income Tax

Our oil and gas segment recorded an income tax benefit of U.S.$51 million for the six-month period ended June 30, 2024, while no charges were recorded for the same period in 2023, mainly related to the non-cash credit on deferred income tax due to an inflation higher than the Argentine peso devaluation.

Profit of the period

As a result of the foregoing, our oil and gas segment recorded a profit of U.S.$75 million for the six-month period ended June 30, 2024, compared to U.S.$14 million for the six-month period ended June 30, 2023, both of which were entirely attributable to the owners of the Company.

Petrochemicals Segment

		Petrochemical (in millions of U.S.$)
		For the six-month period ended
		June 30, 2024	June 30, 2023	Variation	%
Revenue		254	257	(3)	(1%)
Cost of sales		(226)	(231)	5	(2%)
Gross profit		28	26	2	8%
Selling expenses		(6)	(8)	2	(25%)
Administrative expenses		(3)	(3)	-	-
Other operating income and expenses, net		5	(1)	6	(600%)
Impairment of inventory		-	(3)	3	(100%)
Operating income		24	11	13	118%
Financial costs		(2)	(1)	(1)	100%
Other financial results		1	3	(2)	(67%)
Financial results, net		(1)	2	(3)	(150%)
Profit before income tax		23	13	10	77%
Income tax		3	(2)	5	(250%)
Profit of the period		26	11	15	136%
Owners of the company		26	11	15	136%
Non - controlling interest		-	-	-	-

Revenue

Revenue from our petrochemicals segment amounted to U.S.$254 million for the six-month period ended June 30, 2024, 1% lower than the U.S.$257 million reported for the six-month period ended June 30, 2023. This variation is mainly due to lower polystyrene sale volumes, partially offset by higher octane basis sale volumes in the local market.

Total sold volumes during the six-month period ended June 30, 2024 experienced a 7% increase compared to the six-month period ended June 30, 2023. This variation is mainly explained by higher local sales from our reforming plant’s derived products, and lower local volumes from styrene and polystyrene.

The following table shows sales volumes in the petrochemicals segment during the specified periods:

Volume sold in k ton	For the six-month period ended
	June 30, 2024	June 30, 2023
Reforming Plant products	157	136
Styrene & polystyrene	41	54
SBR	22	20
Total	221	209

Cost of Sales

Cost of sales from our petrochemicals segment decreased by 2%, to U.S.$226 million for the six-month period ended June 30, 2024, compared to U.S.$231 million for the six-month period ended June 30, 2023. This variation is mainly due to lower polystyrene production, partially offset by higher volumes of derived products from our reforming plant.

Gross Profit

Our petrochemical segment recorded a gross profit of U.S.$28 million for the six-month period ended June 30, 2024, compared to U.S.$26 million for the same period in 2023, mainly due to higher margins in our reforming plant and SBR, partially offset by lower styrene and polystyrene sale volumes.

The gross margin on sales reached 11% for the six-month period ended June 30, 2024, compared to 10% for the six-month period ended June 30, 2023.

Selling Expenses

Selling expenses from our petrochemicals segment decreased to U.S.$6 million for the six-month period ended June 30, 2024, compared to U.S.$8 million for the six-month period ended June 30, 2023.

Administrative Expenses

Administrative expenses from our petrochemicals segment did not vary, amounting to U.S.$3 million for both six-month periods ended June 30, 2024 and 2023.

Other operating income and expenses, net

Other operating income and expenses, net amounted to a U.S.$5 million gain for the six-month period ended June 30, 2024, compared to a U.S.$1 million loss for the six-month period ended June 30, 2023. This variation is mainly explained by gains derived from the settlement of exports at a differential U.S dollar exchange through the Export Increase Program in 2024.

Impairment of inventory

Our petrochemical segment recorded a loss of U.S.$3 million in the comparative six-month period an impairment of SBR inventories, as consequence of the drop in international prices.

Operating Income

The operating income from our petrochemicals segment increased to U.S.$24 million for the six-month period ended June 30, 2024, compared to U.S.$11 million for the six-month period ended June 30, 2023. This variation is mainly due to other operating income, net and the impairment of inventory in the comparative six-month period explained above.

The operating margin in relation to sales for the six-month period ended June 30, 2024, increased to 9% compared to a 4% for the six-month period ended June 30, 2023.

Financial Results, Net

Our petrochemicals recorded a loss of U.S.$1 million for financial results, net for the six-month period ended June 30, 2024, compared to a U.S.$2 million gain for the six-month period ended June 30, 2023, mainly explained by and lower exchange differences gains over the monetary position in Pesos.

Income Tax

The petrochemicals segment recorded an income tax benefit of U.S.$3 million for the six-month period ended June 30, 2024, compared to a U.S.$2 million tax charge for the same period in 2023.

Profit of the period

The petrochemicals segment recorded a profit of U.S.$26 million for the six-month period ended June 30, 2024, compared to U.S.$11 million for the six-month period ended June 30, 2024, both of which were entirely attributable to the owners of the Company.

Holding and Others Segment

		Holding and others (in millions of U.S.$)
		For the six-month period ended
		June 30, 2024	June 30, 2023	Variation	%
Revenue		10	8	2	25%
Gross profit		10	8	2	25%
Administrative expenses		(19)	(22)	3	(14%)
Other operating income and expenses, net		(27)	(6)	(21)	350%
Share of profit from joint ventures and associates		77	29	48	166%
Recovery of impairment of intangible assets		-	2	(2)	(100%)
Impairment of financial assets		-	(3)	3	(100%)
Profit from sale of companies’ interest		7	-	7	100%
Operating income		48	8	40	500%
Financial income		-	3	(3)	(100%)
Financial costs		(15)	(27)	12	(44%)
Other financial results		7	102	(95)	(93%)
Financial results, net		(8)	78	(86)	(110%)
Profit before income tax		40	86	(46)	(53%)
Income tax		(7)	(6)	(1)	17%
Profit of the period		33	80	(47)	(59%)
Owners of the company		33	80	(47)	(59%)
Non - controlling interest		-	-	-	-

Revenue and gross profit

Revenue and gross profit from our holding and others segment increased by 25% to U.S.$10 million in the six-month period ended June 30, 2024 compared to U.S.$8 million for the six-month period ended on June 30, 2023.

Administrative Expenses

Administrative expenses from our holding and others segment decreased to U.S.$19 million for the six-month period ended June 30, 2024, compared to U.S.$22 million for the six-month period ended June 30, 2023, mainly due to lower compensation agreements for senior management expenses.

 

Other Operating Income and Expenses, Net

Other operating income and expenses, net from our holding and others segment recorded a loss of U.S.$27 million for the six-month period ended June 30, 2024, compared to a U.S.$6 million loss for the six-month period ended June 30, 2023. The variation is mainly due to U.S.$23 million provision for contingencies charges recorded in 2024.

Share of profit from joint ventures and associates

Share of profit from joint ventures and associates from our holding and others segment amounted to U.S.$77 million for the six-month period ended June 30, 2024, compared to U.S.$29 million for the six-month period ended June 30, 2023. This variation is mainly explained by higher profit from our stakes in (i) CIESA amounting to U.S.$22 million, mainly due to tariff increase in its regulated business; and (ii) OCP amounting to U.S.$26 million, mainly due to the acquisition of additional shares of OCP representing 29.66% of OCP’s capital stock.

Recovery of impairment of intangible assets

The recovery of impairment of intangible assets amounted U.S.$2 million for the six-month period ended June 30, 2023, while no charges were recorded for the six-month period ended June 30, 2024.

Impairment of financial assets

Our holding and others segment recorded a U.S.$3 million charge for impairment of financial assets in the comparative six-month period, while no charges were recorded for the six-month period ended June 30, 2024.

Profit from sale of companies’ interest

The profit from sale of companies’ interest from our holding and others segment amounted to U.S.$7 million for the six-month period ended June 30, 2024, due to the sale of 0.65% of TGS, whereas no charges were recorded for the six-month period ended June 30, 2023.

Operating Income

Operating income from our holding and others segment increased by U.S.$40 million, amounting to U.S.$48 million for the six-month period ended June 30, 2024, compared to U.S.$8 million for the six-month period ended June 30, 2023.

Financial Results, Net

Our holding and others segment recorded U.S.$8 million financial net loss for the six-month period ended June 30, 2024, compared to U.S.$78 million gain for the six-month period ended June 30, 2023. This variation is mainly due to lower net exchange difference gains over the monetary position in Pesos.

Income Tax

Our holding and others segment recorded a slight increase on the income tax charge amounting to U.S.$7 million for the six-month period ended June 30, 2024, compared to U.S.$6 million for the six-month period ended June 30, 2023.

Profit of the period

Our holding and others segment recorded profits of U.S.$33 million for the six-month period ended June 30, 2024, compared to U.S.$80 million for the six-month period ended June 30, 2023, both of which were entirely attributable to the owners of the Company.

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