Pampa Energy Inc 6-K, filed May 17, 2023
Pampa Energy Inc. (PAM)
About this 6-K
Pampa Energy Inc filed this 6-K on May 17, 2023.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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 May, 2023
(Commission File No. 001-34429),
PAMPA ENERGIA S.A.
(PAMPA ENERGY INC.)
Argentina
(Jurisdiction of incorporation or organization)
Maipú 1
C1084ABA
City of Buenos Aires
Argentina
(Address of principal executive offices)
(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 MARCH 31, 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: May 12, 2023
| 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 offuture 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 a ctually 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 MARCH 31, 2023
AND FOR THE THREE-MONTH PERIOD THEN ENDED
PRESENTED IN COMPARATIVE FORMAT
| Free translation from the original prepared in Spanish for publication in Argentina |
REPORT ON REVIEW OF THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS
To the President and Directors of
Pampa Energía S.A.
Legal address: Maipú, 1
Autonomous City of Buenos Aires
Tax Code No.: 30-52655265-9
Report on the consolidated condensed interim financial statements
Introduction
We have reviewed the accompanying consolidated condensed interim financial statements of Pampa Energía S.A. and its subsidiaries (hereinafter "the Company"), which comprise the consolidated statement of financial position as of March 31, 2023, the consolidated statement of comprehensive income, the consolidated statements of changes in equity and cash flows for the three-month period ended March 31, 2023 and selected explanatory notes.
Board's responsibility
The Board of Directors of the Company is responsible for the preparation and presentation of the financial statements in accordance with International Financial Reporting Standards, adopted by the Argentine Federation of Professional Councils in Economic Sciences (FACPCE, for its acronym in Spanish) as professional accounting standards and incorporated by the National Securities Commission (CNV, for its acronym in Spanish) to its regulations, as approved by the International Accounting Standards Board (IASB), and therefore is responsible for the preparation and presentation of the consolidated condensed interim financial statements mentioned in the first paragraph, in accordance with International Accounting Standard 34 “Interim Financial Reporting” (IAS 34).
Scope of the review
Our responsibility is to express a conclusion on these consolidated condensed interim financial statements based on our review, which was performed in accordance with the International Standards on Review Engagements ISRE 2410 Review of Interim Financial Information Performed by the Independent Auditor of the entity, adopted as a review standard in Argentina by Technical Pronouncement No. 33 of the FACPCE and approved by the International Auditing and Assurance Standards Board (IAASB). A review of consolidated condensed interim Financial Statements consists of inquiries primarily of Company staff responsible for financial and accounting matters, and applying analytical and other review procedures. This review is substantially less in scope than an audit examination conducted in accordance with international standards on auditing and consequently it does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Price Waterhouse & Co. S.R.L., Bouchard 557, floor 8°, C1106ABG – Autonomous City of Buenos Aires T: +(54.11) 4850.6000, www.pwc.com/ar |
| | Free translation from the original prepared in Spanish for publication in Argentina |
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the consolidated condensed interim Financial Statements mentioned in the first paragraph of this report have not been prepared, in all material respects, in accordance with International Accounting Standard 34.
Report on compliance with current regulations
In accordance with current regulations, we report, in connection with Pampa Energía S.A., that:
a) the consolidated condensed interim financial statements of Pampa Energía S.A. are recorded to the “Inventory and Balance Sheet” book, and complies in what is a matter of our competence, with the provisions of the General Companies Law and in the pertinent resolutions of the National Securities Commission;
b) the individual condensed interim financial statements of Pampa Energía S.A. arise from accounting records kept in their formal aspects in accordance with legal regulations,
c) we have read the Summary of Activity (“Reseña Informativa”), on which, as regards those matters that are within our competence, we have no observations to make;
d) as of March 31, 2023, the debt accrued by Pampa Energía S.A. in favor of the Argentine Integrated Social Security System according to the Company's accounting records and calculations amounted to $ 512.3 millions, none of which was claimable at that date.
Autonomous City of Buenos Aires, May 10, 2023.
|
PRICE WATERHOUSE & CO. S.R.L.
(Partner) |
Carlos Martín Barbafina
| 2 |
Free translation from the original prepared in Spanish for publication in Argentina
|
GLOSSARY OF TERMS
The following are not technical definitions, but they are helpful for the reader’s understanding of some terms used in the notes to the Unaudited Consolidated Condensed Interim Financial Statements of the Company.
Terms |
Definitions | |
ADR |
American Depositary Receipt | |
BCRA |
Argentina’s Central Bank | |
BNA |
Banco de la Nación Argentina | |
CAMMESA |
Compañía Administradora del Mercado Eléctrico Mayorista S.A. | |
CB |
Corporate Bonds | |
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 | |
CTB |
CT Barragán S.A | |
EAR |
Effective Annual Rate | |
EISA |
Energía Inversora S.A. | |
ENRE |
National Regulatory Authority of Electricity | |
GASA |
Generación Argentina S.A. | |
Greenwind |
Greenwind S.A. | |
GyP |
Gas y Petróleo del Neuquén S.A.P.E.M. | |
HIDISA |
Hidroeléctrica Diamante S.A. | |
HINISA |
Hidroeléctrica Los Nihuiles S.A. | |
IASB |
International Accounting Standards Board | |
MATER |
Renewable Energy Forward Market | |
MLC |
Foreign Exchange Market | |
MW |
Megawatt | |
IAS |
International Accounting Standards | |
IFRS |
International Financial Reporting Standards | |
NYSE |
New York Stock Exchange | |
OCP |
Oleoductos de Crudos Pesados Ltd |
| 3 |
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GLOSSARY OF TERMS: (Continuation)
Terms |
Definitions | |
| PB18 | Pampa Bloque 18 S.A. (former Ecuador TLC S.A.) | |
| PEB | Pampa Energía Bolivia S.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 | |
| PISA | Pampa Inversiones S.A. | |
| Refinor | Refinería del Norte 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 | |
| VAR | Vientos de Arauco Renovables S.A.U. | |
| WEM | Wholesale Electrical Market | |
| YPF | YPF S.A. |
| 4 |
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UNAUDITED CONSOLIDATED CONDENSED INTERIM STATEMENT OF
COMPREHENSIVE INCOME
For the three-month period ended March 31, 2023,
presented in comparative format.
(In millions of Argentine Pesos (“$”))
| Note | 03.31.2023 | 03.31.2022 | |||
| Revenue | 8 | 83,915 | 44,011 | ||
| Cost of sales | 9 | (50,538) | (26,244) | ||
| Gross profit | 33,377 | 17,767 | |||
| Selling expenses | 10.1 | (3,193) | (2,063) | ||
| Administrative expenses | 10.2 | (8,310) | (3,529) | ||
| Exploration expenses | 10.3 | (48) | (8) | ||
| Other operating income | 10.4 | 4,859 | 1,300 | ||
| Other operating expenses | 10.4 | (3,845) | (1,668) | ||
| Impairment recovery (Impairment) of intangible assets and inventories | 411 | (9) | |||
| Impairment of financial assets | (291) | (127) | |||
| Share of profit from associates and joint ventures | 5.1.2 | 3,200 | 2,682 | ||
| Operating income | 26,160 | 14,345 | |||
| Financial income | 10.5 | 193 | 246 | ||
| Financial costs | 10.5 | (14,711) | (4,195) | ||
| Other financial results | 10.5 | 14,643 | (289) | ||
| Financial results, net | 125 | (4,238) | |||
| Profit before income tax | 26,285 | 10,107 | |||
| Income tax | 10.6 | 643 | 347 | ||
| Profit for the period | 26,928 | 10,454 | |||
| Other comprehensive income | |||||
| Items that will not be reclassified to profit or loss | |||||
| Exchange differences on translation | 76,810 | 15,371 | |||
| Items that may be reclassified to profit or loss | |||||
| Exchange differences on translation | 2,485 | 4,401 | |||
| Other comprehensive income of the period | 79,295 | 19,772 | |||
| Total comprehensive income of the period | 106,223 | 30,226 |
| 5 |
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UNAUDITED CONSOLIDATED CONDENSED INTERIM
STATEMENT OF COMPREHENSIVE INCOME (Continuation)
For the three-month period ended March 31, 2023,
presented in comparative format.
(In millions of Argentine Pesos (“$”))
| Note | 03.31.2023 | 03.31.2022 | |||
| Total income of the period attributable to: | |||||
| Owners of the Company | 26,918 | 10,304 | |||
| Non-controlling interest | 10 | 150 | |||
| 26,928 | 10,454 | ||||
| Total comprehensive income of the period attributable to: | |||||
| Owners of the Company | 105,983 | 30,024 | |||
| Non-controlling interest | 240 | 202 | |||
| 106,223 | 30,226 | ||||
| Earnings per share attributable to equity holders of the Company | |||||
| Basic and diluted earnings per share | 13.2 | 19.51 | 7.46 |
The accompanying notes are an integral part of these Unaudited Consolidated Condensed Interim Financial Statements.
| 6 |
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UNAUDITED CONSOLIDATED CONDENSED INTERIM STATEMENT
OF FINANCIAL POSITION
As of March 31, 2023,
presented in comparative format.
(In millions of Argentine Pesos (“$”))
| Note | 03.31.2023 | 12.31.2022 | |||
| ASSETS | |||||
| NON-CURRENT ASSETS | |||||
| Property, plant and equipment | 11.1 | 478,125 | 383,464 | ||
| Intangible assets | 11.2 | 27,048 | 24,364 | ||
| Right-of-use assets | 1,652 | 1,521 | |||
| Deferred tax asset | 11.3 | 9,185 | 6,326 | ||
| Investments in associates and joint ventures | 5.1.2 | 195,096 | 159,833 | ||
| Financial assets at amortized cost | 12.1 | 21,038 | 18,000 | ||
| Financial assets at fair value through profit and loss | 12.2 | 5,742 | 4,867 | ||
| Other assets | 103 | 91 | |||
| Trade and other receivables | 12.3 | 5,823 | 3,415 | ||
| Total non-current assets | 743,812 | 601,881 | |||
| CURRENT ASSETS | |||||
| Inventories | 11.4 | 40,092 | 30,724 | ||
| Financial assets at amortized cost | 12.1 | 3,485 | 1,357 | ||
| Financial assets at fair value through profit and loss | 12.2 | 130,780 | 103,856 | ||
| Derivative financial instruments | 187 | 161 | |||
| Trade and other receivables | 12.3 | 100,683 | 83,328 | ||
| Cash and cash equivalents | 12.4 | 26,298 | 18,757 | ||
| Total current assets | 301,525 | 238,183 | |||
| Total assets | 1,045,337 | 840,064 |
| 7 |
Free translation from the original prepared in Spanish for publication in Argentina
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UNAUDITED CONSOLIDATED CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION (Continuation)
As of March 31, 2023,
presented in comparative format.
(In millions of Argentine Pesos (“$”))
| Note | 03.31.2023 | 12.31.2022 | |||
| SHAREHOLDERS´ EQUITY | |||||
| Share capital | 13.1 | 1,380 | 1,380 | ||
| Share capital adjustment | 7,231 | 7,231 | |||
| Share premium | 19,950 | 19,950 | |||
| Treasury shares | 13.1 | 4 | 4 | ||
| Treasury shares adjustment | 21 | 21 | |||
| Treasury shares cost | (2,280) | (2,280) | |||
| Legal reserve | 9,600 | 8,137 | |||
| Voluntary reserve | 202,029 | 171,243 | |||
| Other reserves | (322) | (448) | |||
| Other comprehensive income | 141,300 | 113,720 | |||
| Retained earnings | 130,659 | 84,505 | |||
| Equity attributable to owners of the company | 509,572 | 403,463 | |||
| Non-controlling interest | 1,397 | 1,157 | |||
| Total equity | 510,969 | 404,620 | |||
| LIABILITIES | |||||
| NON-CURRENT LIABILITIES | |||||
| Provisions | 11.5 | 30,907 | 26,062 | ||
| Income tax and minimum notional income tax provision | 11.6 | 35,719 | 31,728 | ||
| Deferred tax liability | 11.3 | 23,590 | 19,854 | ||
| Defined benefit plans | 6,650 | 4,908 | |||
| Borrowings | 12.5 | 281,374 | 237,437 | ||
| Trade and other payables | 12.6 | 5,813 | 3,757 | ||
| Total non-current liabilities | 384,053 | 323,746 | |||
| CURRENT LIABILITIES | |||||
| Provisions | 11.5 | 909 | 779 | ||
| Income tax liability | 11.6 | 506 | 927 | ||
| Tax liabilities | 6,026 | 4,966 | |||
| Defined benefit plans | 984 | 1,021 | |||
| Salaries and social security payable | 4,502 | 5,627 | |||
| Derivative financial instruments | 371 | 318 | |||
| Borrowings | 12.5 | 67,982 | 48,329 | ||
| Trade and other payables | 12.6 | 69,035 | 49,731 | ||
| Total current liabilities | 150,315 | 111,698 | |||
| Total liabilities | 534,368 | 435,444 | |||
| Total liabilities and equity | 1,045,337 | 840,064 |
The accompanying notes are an integral part of these Unaudited Consolidated Condensed Interim Financial Statements.
| 8 |
Free translation from the original prepared in Spanish for publication in Argentina
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UNAUDITED CONSOLIDATED CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY
For the three-month period ended March 31, 2023,
presented in comparative format.
(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 | Subtotal | Non-controlling interest | Total equity | ||||||||||||||
| Balance as of December 31, 2021 | 1,382 | 7,245 | 19,950 | 4 | 21 | (238) | 5,203 | 54,528 | (550) | 51,432 | 44,454 | 183,431 | 609 | 184,040 | |||||||||||||
| Treasury shares acquisition | - | - | - | - | - | (183) | - | - | - | - | - | (183) | - | (183) | |||||||||||||
| Stock compensation plans | - | - | - | - | - | - | - | - | (59) | - | - | (59) | - | (59) | |||||||||||||
| Profit for the three-month period | - | - | - | - | - | - | - | - | - | - | 10,304 | 10,304 | 150 | 10,454 | |||||||||||||
| Other comprehensive income for the three-month period | - | - | - | - | - | - | 513 | 5,452 | - | 9,471 | 4,284 | 19,720 | 52 | 19,772 | |||||||||||||
| Balance as of March 31, 2022 | 1,382 | 7,245 | 19,950 | 4 | 21 | (421) | 5,716 | 59,980 | (609) | 60,903 | 59,042 | 213,213 | 811 | 214,024 | |||||||||||||
| Legal and voluntary reserve constitution | - | - | - | - | - | - | (485) | 44,939 | - | - | (44,454) | - | - | - | |||||||||||||
| Capital reduction | - | - | - | (2) | (14) | 209 | - | (193) | - | - | - | - | - | - | |||||||||||||
| Treasury shares acquisition | (2) | (14) | - | 2 | 14 | (2,068) | - | - | - | - | - | (2,068) | - | (2,068) | |||||||||||||
| Dividens ditribution | - | - | - | - | - | - | - | - | - | - | - | - | (25) | (25) | |||||||||||||
| Stock compensation plans | - | - | - | - | - | - | - | - | 161 | - | - | 161 | - | 161 | |||||||||||||
| Profit (Loss) for the complementary nine-month period | - | - | - | - | - | - | - | - | - | - | 54,555 | 54,555 | (109) | 54,446 | |||||||||||||
| Other comprehensive income for the complementary nine-month period | - | - | - | - | - | - | 2,906 | 66,517 | - | 52,817 | 15,362 | 137,602 | 480 | 138,082 | |||||||||||||
| 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 | |||||||||||||
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UNAUDITED CONSOLIDATED CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY (Continuation)
For the three-month period ended March 31, 2023,
presented in comparative format
(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 | 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 | |||||||||||||
| Stock compensation plans | - | - | - | - | - | - | - | - | 126 | - | - | 126 | - | 126 | |||||||||||||
| Profit for the three-month period | - | - | - | - | - | - | - | - | - | - | 26,918 | 26,918 | 10 | 26,928 | |||||||||||||
| Other comprehensive income for the three-month period | - | - | - | - | - | - | 1,463 | 30,786 | - | 27,580 | 19,236 | 79,065 | 230 | 79,295 | |||||||||||||
| Balance as of March 31, 2023 | 1,380 | 7,231 | 19,950 | 4 | 21 | (2,280) | 9,600 | 202,029 | (322) | 141,300 | 130,659 | 509,572 | 1,397 | 510,969 | |||||||||||||
The accompanying notes are an integral part of these Unaudited Consolidated Condensed Interim Financial Statements.
| 10 |
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UNAUDITED CONSOLIDATED CONDENSED INTERIM STATEMENT OF CASH FLOWS
For the three-month period ended March 31, 2023,
presented in comparative format.
(In millions of Argentine Pesos (“$”))
| Note | 03.31.2023 | 03.31.2022 | |||
| Cash flows from operating activities: | |||||
| Profit for the period | 26,928 | 10,454 | |||
| Adjustments to reconcile net profit to cash flows from operating activities: | 14.1 | 8,050 | 7,733 | ||
| Changes in operating assets and liabilities | 14.2 | (2,436) | (5,545) | ||
| Net cash generated by operating activities | 32,542 | 12,642 | |||
| Cash flows from investing activities | |||||
| Payment for property, plant and equipment acquisitions | (35,060) | (7,848) | |||
| Payment for public securities and shares acquisitions, net | (4,926) | (1,972) | |||
| Recovery (Suscription) of mutual funds, net | 2,130 | (215) | |||
| Payment for the acquisition of associates | - | (62) | |||
| Collection for equity interests in companies sales | 55 | 216 | |||
| Collections for property, plant and equipment sales | 58 | 3 | |||
| Collections for intangible assets sales | 1,626 | 253 | |||
| Dividends received | - | 446 | |||
| (Payment) Collection of loans | (217) | 1,172 | |||
| Net cash used in investing activities | (36,334) | (8,007) | |||
| Cash flows from financing activities | |||||
| Proceeds from borrowings | 12.5 | 28,783 | 2,564 | ||
| Payment of borrowings | 12.5 | (11,465) | - | ||
| Payment of borrowings interests | 12.5 | (10,055) | (4,327) | ||
| Payment for treasury shares acquisition | - | (183) | |||
| Repurchase of corporate bonds | 12.5 | (586) | - | ||
| Payments of leases | (75) | (183) | |||
| Net cash generated by (used in) financing activities | 6,602 | (2,129) | |||
| Increase in cash and cash equivalents | 2,810 | 2,506 | |||
| Cash and cash equivalents at the beginning of the year | 12.4 | 18,757 | 11,283 | ||
| Exchange and conversion difference generated by cash and cash equivalents | 4,731 | 835 | |||
| Increase in cash and cash equivalents | 2,810 | 2,506 | |||
| Cash and cash equivalents at the end of the period | 12.4 | 26,298 | 14,624 |
The accompanying notes are an integral part of these Unaudited Consolidated Condensed Interim Financial Statements.
| 11 |
Free translation from the original prepared in Spanish for publication in Argentina
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM
FINANCIAL STATEMENTS
For the three-month period ended March 31, 2023,
presented in comparative format.
(In millions of Argentine Pesos (“$”))
NOTE 1: GENERAL INFORMATION
General information of the Company
The Company is a fully integrated power company in Argentina, which directly and through its subsidiaries, participates in the electric energy and gas value chains.
In the generation segment, the Company, directly and through its subsidiaries and joint ventures, has a 5,386 MW installed capacity as of March 31, 2023, which represents approximately 12% of Argentina’s installed capacity, and being one of the four largest independent generators in the country. Additionally, the Company is currently undergoing a process to expand its installed capacity by an additional 185 MW.
In the oil and gas segment, the Company develops an important activity in gas and oil exploration and production, with operations in 11 production areas and 4 exploratory areas reaching a production level of 8.9 million m3/day of natural gas and 5.2 thousand boe/day of oil in Argentina, during the three-month period ended March 31, 2023. Its main natural gas production blocks are located in the Provinces of Neuquén and Río Negro.
In the petrochemicals segment, operations are located in Argentina, where the Company operates two high-complexity plants producing styrene, synthetic rubber and polystyrene, with a domestic market share ranging between 94% and 100%.
Finally, through the holding 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 21,697 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 9,233 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 30.1% indirect interest in OCP, licensee company of an oil pipeline in Ecuador that has a transportation capacity of 450 thousand barrels/day. Additionally, the segment includes advisory services provided to related companies.
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Free translation from the original prepared in Spanish for publication in Argentina
NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation) For the three-month period ended March 31, 2023, presented in comparative format. (In millions of Argentine Pesos (“$”))
|
NOTE 2: REGULATORY FRAMEWORK
| 2.1 | Generation |
| 2.1.1 | Renewable Energy Term Market (“MATER” Regime) |
On March 20, 2023, SE Resolution No. 165/23 was passed, which modified the penalty system applicable to MATER projects, including projects awarded under the Renovar MiniRen Program, Round 3. Penalties for breaches in the committed supply of energy were incorporated into the system, to be discounted in 12 monthly and consecutive installments as from commercial commissioning, keeping the generator’s option to cancel the penalties in 48 monthly and consecutive installments with the application of a 1.7% EAR in U.S. dollars. To avoid affecting the projects’ minimum maintenance, a 20% discount cap for the monthly transaction was established for those generators opting into the 48-installment scheme. The balance following the application of this cap will be discounted in the first transaction in which the penalty is below the stated cap; if the number of installments is exceeded, the scheme will be maintained until the penalties’ full cancellation and, in case the contract term is exceeded, the payment scheme may be restructured, or the discount cap may be increased to 40% of the transaction.
| 2.1.2 | Supply Agreements with CAMMESA |
2.1.2.1 Renovar Programs
In line with the scheme set forth by SE Resolution No. 1,260/21 and to address the issue of projects under the different Renovar rounds breaching the committed commercial commissioning dates, on April 25, 2023, the SE passed Resolution No. 284/23 to release the transportation capacity committed under different Renovar Rounds having difficulties with the projects' conclusion. The new scheme authorizes holders of these projects to terminate the Supply Agreement with CAMMESA against the payment of an amount equivalent to US$ 35,000 per MW of the project’s power capacity, the waiver of claims against the Federal Government, the SE and/or CAMMESA, an indemnity commitment to realease these authorities against claims by its shareholders or controlling, controlled and/or affiliated companies, and the waiver of granted and unused fiscal benefits. Applications should be presented to CAMMESA within 30 calendar days from the resolution’s publication.
2.1.2.2 Remuneration for combined cycles
SE Resolution No. 59/23 dated February 7, 2023 established an opt-in system under which combined cycles’ owners could execute an availability and efficiency optimization agreement with CAMMESA. The agreement contemplates an availability commitment for 85% of the net power capacity for a maximum term of 5 years and sets a US$ 2,000/MW-month remuneration for the available power capacity and the dollarization of the energy price based on the fuel used (US$ 3.5/MWh for natural gas and US$ 6.1/MWh for fuel oil and gas oil). Besides, it provides for a 35% and 15% reduction in the remuneration collectible for guaranteed power capacity for generators with availability commitments in the spot market for the summer-winter and autumn-spring periods, respectively.
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation) For the three-month period ended March 31, 2023, presented in comparative format. (In millions of Argentine Pesos (“$”))
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NOTE 2: (Continuation)
The Company executed agreements with CAMMESA for its CTLL and Genelba power plants’ combined cycles. On the other side, CTB executed an agreement with CAMMESA for its open cycle’s gas turbines units. In all cases, agreements are effective from March 1, 2023 to February 29, 2028.
| 2.2 | Oil and Gas |
Natural gas exports
On April 19, 2023, the SE notified the Company of the extension of the Neuquina basin’s natural gas export quota for the next winter period, consisting of: (i) an extraordinary and priority quota of 2 million m3/d for the months of May and June 2023, assignable pro rata among the “July Flat Gas Commitment” awardees, and (ii) a firm winter export quota under Plan GasAr for a 3 million m3/d volume for the months of July, August and September 2023.
In this sense, the Company was assigned a volume of 872,727 m3/d and 857,449 m3/d for the first and second periods, respectively. Moreover, the minimum price for export permits will remain at US$ 7.73/MMBTU.
Besides, the following summer export quotas were assigned: 9 million m3/d for the Neuquina Basin and 2 million m3/d for the Austral Basin. The minimum price will result from calculating the simple average Brent oil prices in the first fifteen days of the month prior to delivery, multiplied by 7%. The Company was assigned a 1,452,878 m3/d volume.
| 2.3 | Gas Transportation |
TGS’s Tariff situation
On March 16, 2023, TGS’s Board of Directors approved a proposed addendum to the renegotiation transitionary agreement (the “2023 RTT”) sent by ENARGAS. On April 27, 2023, ENARGAS issued Resolution No. 186/23 publishing the new effective tariff schemes. The 2023 RTT was later ratified by PEN Executive Order No. 250/23 dated April 29, 2023.
The 2023 RTT includes, effective from April 29, 2023, a 95% transitionary tariff scheme on the natural gas transportation tariff and the access and use charge. While it is in force, TGS may not distribute dividends or directly or indirectly early cancel financial and commercial debts taken on with shareholders, acquire other companies or grant loans. If TGS deems it appropriate to act otherwise regarding the payment of dividends, it should require the Ministry of Economy’s authorization.
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation) For the three-month period ended March 31, 2023, presented in comparative format. (In millions of Argentine Pesos (“$”))
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NOTE 2: (Continuation)
| 2.4 | Transmission |
Transener and Transba’s tariff situation
On April 20, 2023, under ENRE Resolution No. 364/23, the ENRE launched the comprehensive tariff review process for electricity transmission companies pursuant to Act No. 24,065 and Act No. 27,541, setting a 30-day term as from June 1, 2023 to draw up the guidelines and schedule for its development.
| 2.5 | Regulations on access to the MLC |
The main updates introduced by the BCRA on MLC inflow and outflow regulations which were disclosed in the Consolidated Financial Statements as of December 31, 2022, are summarized below.
On April 20, 2023, for the provision of certain services, the BCRA prior authorization was incorporated as requirement to access the MLC before 60 calendar days as from approval of the Argentine Republic’s Imports and Foreign Service Payments System (“SIRASE”)’s affidavit. This requirement is not applicable in the following cases: (i) payments through a swap and/or arbitrage against a foreign-currency domestic account; (ii) access simultaneously with the settlement of a new foreign financial indebtedness for which the principal matures after the stated term; and (iii) access with funds originated in the financing of service imports granted by a domestic financial entity with a commercial credit line abroad when the total principal of the financing matures after the stated term.
As regards transactions with stock market assets, the term during which transactions may not be conducted is extended to 180 calendar days for securities issued under foreign law and maintained at 90 days for securities issued under Argentine law, to be submitted in the affidavits to access the MLC.
More information on Argentina’s foreign exchange regulations can be found at the Central Bank’s website: www.bcra.gov.ar.
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation) For the three-month period ended March 31, 2023, presented in comparative format. (In millions of Argentine Pesos (“$”))
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NOTE 3: BASIS OF PREPARATION
These Consolidated Condensed Interim Financial Statements for the three-month period ended March 31, 2023 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 May 10, 2023.
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, 2022, which have been prepared under IFRS.
These Consolidated Condensed Interim Financial Statements for the three-month period ended March 31, 2023 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 three-month period ended March 31, 2023, 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, 2022 and for the three-month period ended March 31, 2022, 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 figures of the current period.
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation) For the three-month period ended March 31, 2023, presented in comparative format. (In millions of Argentine Pesos (“$”))
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NOTE 4: ACCOUNTING POLICIES
The accounting policies applied in these Consolidated Condensed Interim Financial Statements are consistent with those used in the Consolidated Financial Statements for the last fiscal year, which ended on December 31, 2022.
New accounting standards, amendments and interpretations issued by the IASB effective as of December 31, 2023 and adopted by the Company
The Company has applied the following standards and / or amendments for the first time as of January 1, 2023:
| - | IFRS 17 - “Insurance Contracts” (issued in May 2017 and modified in June 2020 and December 2021). |
| - | IAS 1 - “Presentation of financial statements” (amended in February 2021). |
| - | IAS 8 - “Accounting Policies” (amended in February 2021). |
| - | IAS 12 - “Income Tax” (amended in May 2021). |
The application of the detailed standards and amendments did not have any impact on the results of the operations or the financial position of the Company.
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation) For the three-month period ended March 31, 2023, presented in comparative format. (In millions of Argentine Pesos (“$”))
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NOTE 5: GROUP STRUCTURE
| 5.1 | Interest in subsidiaries, associates and joint ventures |
| 5.1.1 | Subsidiaries information |
| 03.31.2023 | 12.31.2022 | |||||||
| Company | Country | Main activity | Direct and indirect participation % | Direct and indirect participation % | ||||
| Autotrol Renovable S.A. | Argentina | Generation | 100.00% | 100.00% | ||||
| GASA | Argentina | Generation | 100.00% | 100.00% | ||||
| Enecor S.A. | Argentina | Electricity transportation | 70.00% | 70.00% | ||||
| Fideicomiso CIESA | Argentina | Investment | 100.00% | 100.00% | ||||
| Greenwind | Argentina | Generation | 100.00% | 100.00% | ||||
| HIDISA | Argentina | Generation | 61.00% | 61.00% | ||||
| HINISA | Argentina | Generation | 52.04% | 52.04% | ||||
| CISA | Argentina | Trader & investment | 100.00% | 100.00% | ||||
| PEB | Bolivia | Investment | 100.00% | 100.00% | ||||
| PB18 | Ecuador | Oil | 100.00% | 100.00% | ||||
| Energía Operaciones ENOPSA S.A. | Ecuador | Oil | 100.00% | 100.00% | ||||
| Pampa Ecuador Inc | Nevis | Investment | 100.00% | 100.00% | ||||
| PE Energía Ecuador LTD | Gran Cayman | Investment | 100.00% | 100.00% | ||||
| EISA | Uruguay | Investment | 100.00% | 100.00% | ||||
| PISA | Uruguay | Investment | 100.00% | 100.00% | ||||
| TGU | Uruguay | Gas transportation | 51.00% | 51.00% | ||||
| Petrolera San Carlos S.A. | Venezuela | Oil | 100.00% | 100.00% | ||||
| Vientos de Arauco Renovables S.A.U. | Argentina | Generation | 100.00% | 100.00% | ||||
| Vientos Solutions Argentina S.A.U. | Argentina | Advisory services | 100.00% | 100.00% | ||||
| VS SLU | España | Investment | 100.00% | 100.00% |
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation) For the three-month period ended March 31, 2023, presented in comparative format. (In millions of Argentine Pesos (“$”))
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NOTE 5: (Continuation)
| 5.1.2 | 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:
| Information about the issuer | ||||||||||||
| Main activity | Date | Share capital | Profit (Loss) of the period | Equity | Direct and indirect participation % | |||||||
| Associates | ||||||||||||
| OCP | Investment | 03.31.2023 | 17,796 | (51) | 17,070 | 30.06% | ||||||
| TGS (1) | Gas transportation | 03.31.2023 | 753 | 5,663 | 330,961 | 3.576% | ||||||
| Joint ventures | ||||||||||||
| CIESA (1) | Investment | 03.31.2023 | 639 | 2,876 | 168,885 | 50.00% | ||||||
| Citelec (2) | Investment | 03.31.2023 | 556 | 2,218 | 52,860 | 50.00% | ||||||
| CTB | Generation | 03.31.2023 | 8,558 | 1,042 | 113,114 | 50.00% | ||||||
| (1) | The Company holds a direct and indirect interest of 3.576% in TGS and 50% in CIESA, a company that holds a 51% interest in the share capital of TGS. Therefore, additionally the Company has an indirect participation of 25.50% in TGS. |
| As of March 31, 2023, the quotation of TGS's ordinary shares and ADR published on the Buenos Aires Stock Exchange and the NYSE was $ 824.75 and US$ 10.24, respectively, granting to Pampa (direct and indirect) ownership an approximate stake market value of $ 190,525 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 March 31, 2023, Transener’s common share price listed at the Buenos Aires Stock Exchange was $ 199.75 conferring Pampa’s indirect interest an approximate $ 23,383 million market value. |
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation) For the three-month period ended March 31, 2023, presented in comparative format. (In millions of Argentine Pesos (“$”))
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NOTE 5: (Continuation)
The detail of the balances of investments in associates and joint ventures is as follows:
| 03.31.2023 | 12.31.2022 | |||
| Disclosed in non-current assets | ||||
| Associates | ||||
| OCP | 3,203 | 2,679 | ||
| TGS | 13,787 | 11,805 | ||
| Other | 4 | 3 | ||
| Total associates | 16,994 | 14,487 | ||
| Joint ventures | ||||
| CIESA | 95,114 | 77,043 | ||
| Citelec | 26,430 | 20,801 | ||
| CTB | 56,558 | 47,502 | ||
| Total joint ventures | 178,102 | 145,346 | ||
| Total associates and joint ventures | 195,096 | 159,833 |
The following table shows the breakdown of the result from investments in associates and joint ventures:
| 03.31.2023 | 03.31.2022 | |||
| Associates | ||||
| Refinor (1) | - | (1,328) | ||
| OCP | 39 | (703) | ||
| TGS | 203 | 308 | ||
| Total associates | 242 | (1,723) | ||
| Joint ventures | ||||
| CIESA | 1,328 | 2,037 | ||
| Citelec | 1,109 | 21 | ||
| CTB | 521 | 2,315 | ||
| Greenwind (2) | - | 32 | ||
| Total joint ventures | 2,958 | 4,405 | ||
| Total associates and joint ventures | 3,200 | 2,682 |
| (1) | During 2022, the Company sold its equity interests in Refinor. |
| (2) | On August 12, 2022, the Company acquired an additional 50% indirect stake in Greenwind’s capital stock and the control of this company. |
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation) For the three-month period ended March 31, 2023, presented in comparative format. (In millions of Argentine Pesos (“$”))
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NOTE 5: (Continuation)
The evolution of investments in associates and joint ventures is as follows:
| 03.31.2023 | 03.31.2022 | |||
| At the beginning of the year | 159,833 | 79,114 | ||
| Dividends | - | (844) | ||
| Increases | - | 62 | ||
| Decrease due to sale of equity interests | (658) | - | ||
| Share of profit | 3,200 | 3,924 | ||
| Impairment | - | (1,242) | ||
| Exchange differences on translation | 32,721 | 10,821 | ||
| At the end of the period | 195,096 | 91,835 |
| 5.1.3 | Investment in OCP |
On May 4, 2023, the Company, through its subsidiary PEB, entered into a purchase agreement with Repsol OCP de Ecuador S.A. to acquire 2,979,606,613 additional shares, representing 29.66% of the share capital, of OCP Ltd, which in turn holds the whole share capital and voting rights of OCP SA, for a price of US$ 15 million, adjusted by subtracting the dividends collected by Repsol between January 1, 2023 and the transaction closing date. The completion of the transaction is subject to the customary precedent conditions, including the applicable governmental approvals.
| 5.1.4 | Investment in CTB |
Closing to combined cycle project
On February 22, 2023, CTB stared operations under the supply agreement with CAMMESA. On April 26, 2023, CTB was commissioned to operate with gas oil.
Issuance of CB
The resolutive condition of the guarantees granted by CTB’s co-controlling shareholders (Pampa Energía S.A. and YPF S.A.) in favor of holders of outstanding Classes 1, 2, 4, 6, 7 and 8 CB issued by CTB to secure the timely and proper payment of any owed amount, including principal and interest services, was fulfilled with the combined cycle’s commissioning on February 22, 2023. Consequently, these guarantees are terminated, ineffective and unenforceable.
After the period closing, on April 3, 2023, CTB issued Class 9 CB for a total amount of US$ 50 million at an annual fixed interest rate of 0% and maturing on April 3, 2026. Class 9 CB were subscribed and paid in cash and in-kind through the delivery of Class 1 CB, Class 1 CB with a fair value of US$ 2.2 million were partially canceled, with a US$ 30 million outstanding face value.
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation) For the three-month period ended March 31, 2023, presented in comparative format. (In millions of Argentine Pesos (“$”))
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NOTE 5: (Continuation)
As of the date of issuance of these Consolidated Condensed Interim Financial Statements, CTB is in compliance with all the covenants under its debt agreements.
| 5.2 | Oil and gas participations |
Continuity plan in the Parva Negra Este block
On December 14, 2022, the Company, ExxonMobil Exploration Argentina S.R.L. and GyP submitted to the Provincial Enforcement Authority a proposal for a contractual continuity plan which included: (i) the granting of a Lot under Evaluation for the April-2022 through April-2025 period, (ii) a 50% reduction of the block’s surface, to a total surface of 143 km2, (iii) the assignment of ExxonMobil Exploration Argentina S.R.L.’s 42.50% interest to the Company, and (iv) the commitment to drill and complete 1 horizontal well targeting Vaca Muerta before September 2024.
As of the issuance of these Consolidated Condensed Interim Financial Statements, the parties have executed an addendum to the Joint Venture agreement under the stated terms, and the Provincial Executive Order approving it is pending issuance.
Anticlinal Campamento termination agreement
On January 19, 2023, the Company accepted Oilstone Energía S.A.’s offer to terminate its rights and obligations under the investment agreement, the Joint Venture and the operating agreement of the block, effective from January 1, 2023.
Estación Fernández Oro termination agreement
On March 14, 2023, the Company accepted YPF S.A.’s proposal to terminate, effective as from January 1, 2023, all the Company’s rights and obligations in the investment agreement, the Joint Venture and the operating agreement for the Estación Fernández Oro block’s exploitation concession.
Las Tacanas Norte Exploration Permit Termination
On January 4, 2023, the Las Tacanas Norte block exploration period terminated, and the Company’s rights and obligations over the area expired.
Aguaragüe Concession Extension
On February 3, 2023, an agreement for a 10-year extension of the concession was signed with the enforcement authority. The agreement includes investment commitments for the execution of 1 well, 2 workovers and 2D seismic reprocessing.
As of the issuance of these Consolidated Condensed Interim Financial Statements, the Provincial Executive Order ratifying this agreement is pending publication.
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation) For the three-month period ended March 31, 2023, presented in comparative format. (In millions of Argentine Pesos (“$”))
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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 year ended December 31, 2022.
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 year.
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation) For the three-month period ended March 31, 2023, presented in comparative format. (In millions of Argentine Pesos (“$”))
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NOTE 7: SEGMENT INFORMATION
The Company is a fully integrated power company in Argentina, which participates in the electricity and oil and gas value chains.
Through its own activities, subsidiaries and share holdings 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, VAR, CTB, TMB, TJSM and through its own electricity generation activities through thermal plants Güemes, Piedra Buena, Piquirenda, Loma de la Lata, Genelba, Ecoenergía, Pilar, I. White, the Pichi Picún Leufú hydroelectric complex and PEPE II, PEPE III and PEPE IV wind farms. It is worth highlighting that the results of the segment’s operations reflect the effects of the consolidation with Greenwind and VAR as from August 12, 2022, and December 16, 2022, respectively.
Oil and Gas, principally consisting of the Company’s interests in oil and gas areas and through its direct and indirect interest in CISA.
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 and CIESA and their respective subsidiaries, which hold the concession over the high voltage electricity transmission nationwide and over gas transportation in the south of the country, respectively, interests in the associate OCP, holding activities and other financial investment transactions.
The Company manages its operating segment based on its individual net result in U.S. dollars.
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation) For the three-month period ended March 31, 2023, presented in comparative format. (In millions of Argentine Pesos (“$”))
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NOTE 7: (Continuation)
| in million of US$ | in million of $ | |||||||||||||
| Consolidated profit and loss information for the three-month period ended March 31, 2023 | Generation | Oil and gas | Petrochemicals | Holding and others | Eliminations | Consolidated | Consolidated | |||||||
| Revenue - local market | 173 | 79 | 89 | 4 | - | 345 | 67,409 | |||||||
| Revenue - foreign market | - | 50 | 36 | - | - | 86 | 16,506 | |||||||
| Intersegment revenue | - | 25 | - | - | (25) | - | - | |||||||
| Cost of sales | (84) | (92) | (114) | - | 25 | (265) | (50,538) | |||||||
| Gross profit | 89 | 62 | 11 | 4 | - | 166 | 33,377 | |||||||
| Selling expenses | (1) | (12) | (3) | - | - | (16) | (3,193) | |||||||
| Administrative expenses | (12) | (18) | (2) | (9) | - | (41) | (8,310) | |||||||
| Exploration expenses | - | - | - | - | - | - | (48) | |||||||
| Other operating income | 11 | 5 | - | - | - | 16 | 4,859 | |||||||
| Other operating expenses | (5) | (5) | - | (3) | - | (13) | (3,845) | |||||||
| Impairment recovery of intangible assets | - | - | - | 2 | - | 2 | 411 | |||||||
| Impairment of financial assets | - | - | - | - | - | - | (291) | |||||||
| Share of profit from associates and joint ventures | 2 | - | - | 13 | - | 15 | 3,200 | |||||||
| Operating income | 84 | 32 | 6 | 7 | - | 129 | 26,160 | |||||||
| Financial income | - | - | - | 2 | (2) | - | 193 | |||||||
| Financial costs | (25) | (38) | (1) | (14) | 2 | (76) | (14,711) | |||||||
| Other financial results | 34 | 5 | - | 45 | - | 84 | 14,643 | |||||||
| Financial results, net | 9 | (33) | (1) | 33 | - | 8 | 125 | |||||||
| Profit before income tax | 93 | (1) | 5 | 40 | - | 137 | 26,285 | |||||||
| Income tax | 3 | - | - | 1 | - | 4 | 643 | |||||||
| Profit (Loss) of the period | 96 | (1) | 5 | 41 | - | 141 | 26,928 | |||||||
| Depreciation and amortization | 26 | 32 | 1 | - | - | 59 | 11,369 | |||||||
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation) For the three-month period ended March 31, 2023, presented in comparative format. (In millions of Argentine Pesos (“$”))
|
NOTE 7: (Continuation)
| in million of US$ | in million of $ | |||||||||||||
| Consolidated profit and loss information for the three-month period ended March 31, 2023 | Generation | Oil and gas | Petrochemicals | Holding and others | Eliminations | Consolidated | Consolidated | |||||||
| Total profit (loos) of the year attributable to: | ||||||||||||||
| Owners of the company | 96 | (1) | 5 | 41 | - | 141 | 26,918 | |||||||
| Non-controlling interest | - | - | - | - | - | - | 10 | |||||||
| Consolidated financial position information as of March 31, 2023 | ||||||||||||||
| Assets | 2,661 | 1,288 | 176 | 1,043 | (167) | 5,001 | 1,045,337 | |||||||
| Liabilities | 1,014 | 1,315 | 162 | 232 | (166) | 2,557 | 534,368 | |||||||
| Net book values of property, plant and equipment | 1,369 | 859 | 25 | 35 | - | 2,288 | 478,125 | |||||||
| Additional consolidated information as of March 31, 2023 | ||||||||||||||
| Increases in property, plant and equipment | 93 | 88 | 2 | 2 | - | 185 | 36,399 | |||||||
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation) For the three-month period ended March 31, 2023, presented in comparative format. (In millions of Argentine Pesos (“$”))
|
NOTE 7: (Continuation)
| in million of US$ | in million of $ | |||||||||||||
| Consolidated profit and loss information for the three-month period ended March 31, 2022 | Generation | Oil and gas | Petrochemicals | Holding and others | Eliminations | Consolidated | Consolidated | |||||||
| Revenue - local market | 166 | 58 | 85 | 7 | - | 316 | 33,709 | |||||||
| Revenue - foreign market | - | 55 | 41 | - | - | 96 | 10,302 | |||||||
| Intersegment revenue | - | 24 | - | - | (24) | - | - | |||||||
| Cost of sales | (84) | (71) | (116) | - | 24 | (247) | (26,244) | |||||||
| Gross profit | 82 | 66 | 10 | 7 | - | 165 | 17,767 | |||||||
| Selling expenses | (1) | (15) | (4) | - | - | (20) | (2,063) | |||||||
| Administrative expenses | (9) | (14) | (1) | (8) | - | (32) | (3,529) | |||||||
| Exploration expenses | - | - | - | - | - | - | (8) | |||||||
| Other operating income | 4 | 4 | - | 3 | - | 11 | 1,300 | |||||||
| Other operating expenses | (1) | (12) | - | (2) | - | (15) | (1,668) | |||||||
| Impairment of inventories | - | - | - | - | - | - | (9) | |||||||
| Impairment of financial assets | - | - | - | (1) | - | (1) | (127) | |||||||
| Share of profit from associates and joint ventures | 22 | - | - | 3 | - | 25 | 2,682 | |||||||
| Operating income | 97 | 29 | 5 | 2 | - | 133 | 14,345 | |||||||
| Financial income | 1 | 1 | - | 3 | (2) | 3 | 246 | |||||||
| Financial costs | (13) | (24) | (1) | (3) | 2 | (39) | (4,195) | |||||||
| Other financial results | 9 | (12) | 1 | - | - | (2) | (289) | |||||||
| Financial results, net | (3) | (35) | - | - | - | (38) | (4,238) | |||||||
| Profit before income tax | 94 | (6) | 5 | 2 | - | 95 | 10,107 | |||||||
| Income tax | 4 | 2 | - | (1) | - | 5 | 347 | |||||||
| Profit (Loss) of the period | 98 | (4) | 5 | 1 | - | 100 | 10,454 | |||||||
| Depreciation and amortization | 22 | 27 | 1 | - | - | 50 | 5,374 | |||||||
| 27 |
Free translation from the original prepared in Spanish for publication in Argentina
NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation) For the three-month period ended March 31, 2023, presented in comparative format. (In millions of Argentine Pesos (“$”))
|
NOTE 7: (Continuation)
| in million of US$ | in million of $ | |||||||||||||
| Consolidated profit and loss information for the three-month period ended March 31, 2022 | Generation | Oil and gas | Petrochemicals | Holding and others | Eliminations | Consolidated | Consolidated | |||||||
| Total profit (loss) of the period attributable to: | ||||||||||||||
| Owners of the company | 97 | (4) | 5 | 1 | - | 99 | 10,304 | |||||||
| Non-controlling interest | 1 | - | - | - | - | 1 | 150 | |||||||
| Consolidated financial position information as of December 31, 2022 | ||||||||||||||
| Assets | 2,464 | 1,234 | 177 | 1,029 | (162) | 4,742 | 840,064 | |||||||
| Liabilities | 979 | 1,248 | 147 | 245 | (161) | 2,458 | 435,444 | |||||||
| Net book values of property, plant and equipment | 1,299 | 807 | 24 | 34 | - | 2,164 | 383,464 | |||||||
| Additional consolidated information as of March 31, 2022 | ||||||||||||||
| Increases in property, plant and equipment | 10 | 63 | - | 1 | - | 74 | 7,878 | |||||||
| 28 |
Free translation from the original prepared in Spanish for publication in Argentina
NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation) For the three-month period ended March 31, 2023, presented in comparative format. (In millions of Argentine Pesos (“$”))
|
NOTE 8: REVENUE
| 03.31.2023 | 03.31.2022 | |||
| Energy sales in Spot Market | 11,218 | 5,983 | ||
| Energy sales by supply contracts | 18,704 | 9,138 | ||
| Fuel supply | 3,992 | 2,511 | ||
| Other sales | 52 | 121 | ||
| Generation sales subtotal | 33,966 | 17,753 | ||
| Gas sales | 17,393 | 8,235 | ||
| Oil sales | 7,018 | 3,489 | ||
| Other sales | 351 | 321 | ||
| Oil and gas sales subtotal | 24,762 | 12,045 | ||
| Products from catalytic reforming sales | 10,902 | 5,385 | ||
| Styrene sales | 3,751 | 2,263 | ||
| Synthetic rubber sales | 3,238 | 2,356 | ||
| Polystyrene sales | 6,463 | 3,360 | ||
| Other sales | 124 | 130 | ||
| Petrochemicals sales subtotal | 24,478 | 13,494 | ||
| Technical assistance and administration services sales | 686 | 715 | ||
| Other sales | 23 | 4 | ||
| Holding and others subtotal | 709 | 719 | ||
| Total revenue | 83,915 | 44,011 |
| 29 |
Free translation from the original prepared in Spanish for publication in Argentina
NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation) For the three-month period ended March 31, 2023, presented in comparative format. (In millions of Argentine Pesos (“$”))
|
NOTE 9: COST OF SALES
| 03.31.2023 | 03.31.2022 | |||
| Inventories at the beginning of the year | 30,724 | 15,888 | ||
| Plus: Charges of the period | ||||
| Purchases of inventories, energy and gas | 22,948 | 14,455 | ||
| Salaries and social security charges | 3,912 | 1,917 | ||
| Employees benefits | 703 | 366 | ||
| Defined benefit plans | 574 | 160 | ||
| Works contracts, fees and compensation for services | 5,217 | 1,749 | ||
| Property, plant and equipment depreciation | 10,715 | 5,007 | ||
| Intangible assets amortization | 288 | 12 | ||
| Right-of-use assets amortization | 37 | 215 | ||
| Energy transportation | 427 | 172 | ||
| Transportation and freights | 617 | 335 | ||
| Consumption of materials | 1,106 | 553 | ||
| Penalties | 89 | 14 | ||
| Maintenance | 2,063 | 1,245 | ||
| Canons and royalties | 4,088 | 1,921 | ||
| Environmental control | 316 | 104 | ||
| Rental and insurance | 1,387 | 811 | ||
| Surveillance and security | 200 | 90 | ||
| Taxes, rates and contributions | 193 | 126 | ||
| Other | 190 | 41 | ||
| Total charges of the period | 55,070 | 29,293 | ||
| Exchange differences on translation | 4,836 | 1,036 | ||
| Less: Inventories at the end of the period | (40,092) | (19,973) | ||
| Total cost of sales | 50,538 | 26,244 |
| 30 |
Free translation from the original prepared in Spanish for publication in Argentina
NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation) For the three-month period ended March 31, 2023, presented in comparative format. (In millions of Argentine Pesos (“$”))
|
NOTE 10: OTHER ITEMS OF THE STATEMENT OF COMPREHENSIVE INCOME
10.1 Selling expenses
| 03.31.2023 | 03.31.2022 | ||||
| Salaries and social security charges | 247 | 139 | |||
| Employees benefits | 20 | 8 | |||
| Fees and compensation for services | 174 | 90 | |||
| Property, plant and equipment depreciation | 1 | 1 | |||
| Taxes, rates and contributions | 615 | 271 | |||
| Transportation and freights | 2,093 | 1,518 | |||
| Other | 43 | 36 | |||
| Total selling expenses | 3,193 | 2,063 |
10.2 Administrative expenses
| 03.31.2023 | 03.31.2022 | ||||
| Salaries and social security charges | 3,344 | 1,344 | |||
| Employees benefits | 350 | 136 | |||
| Defined benefit plans | 1,246 | 280 | |||
| Fees and compensation for services | 1,301 | 882 | |||
| Compensation agreements | 865 | 310 | |||
| Directors' and Sindycs' fees | 282 | 149 | |||
| Property, plant and equipment depreciation | 328 | 139 | |||
| Consumption of materials | 15 | 12 | |||
| Maintenance | 107 | 65 | |||
| Transport and per diem | 93 | 26 | |||
| Rental and insurance | 25 | 8 | |||
| Surveillance and security | 47 | 22 | |||
| Taxes, rates and contributions | 98 | 55 | |||
| Communications | 52 | 27 | |||
| Other | 157 | 74 | |||
| Total administrative expenses | 8,310 | 3,529 |
10.3 Exploration expenses
| 03.31.2023 | 03.31.2022 | ||||
| Geological and geophysical expenses | 48 | 8 | |||
| Total exploration expenses | 48 | 8 |
| 31 |
Free translation from the original prepared in Spanish for publication in Argentina
NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation) For the three-month period ended March 31, 2023, presented in comparative format. (In millions of Argentine Pesos (“$”))
|
NOTE 10: (Continuation)
10.4 Other operating income and expenses
| 03.31.2023 | 03.31.2022 | |||
| Other operating income | ||||
| Insurance recovery | 4 | 15 | ||
| Services provided to third parties | 34 | 45 | ||
| Results for property, plant and equipment sale and derecognition | 51 | 3 | ||
| Result from intangible assets sale | - | 252 | ||
| Contingencies recovery | 2 | 1 | ||
| Tax charges recovery | 12 | 8 | ||
| Commercial interests | 2,791 | 445 | ||
| Contractual indemnity | 1,360 | - | ||
| Argentine Natural Gas Production Promotion Plan | 464 | 396 | ||
| Other | 141 | 135 | ||
| Total other operating income | 4,859 | 1,300 | ||
| Other operating expenses | ||||
| Provision for contingencies | (250) | (53) | ||
| Provision for environmental remediation | (10) | - | ||
| Results for property, plant and equipment sale and derecognition | (19) | (34) | ||
| Tax credits´ impairment | (8) | (1) | ||
| Tax on bank transactions | (656) | (325) | ||
| Donations and contributions | (83) | (47) | ||
| Institutional promotion | (104) | (87) | ||
| Costs of concessions agreements completion | (794) | - | ||
| Contractual penalty | (1,360) | - | ||
| Readjustment of investment plan (1) | - | (1,011) | ||
| Royalties of Argentine Natural Gas Production Promotion Plan | (66) | (57) | ||
| Other | (495) | (53) | ||
| Total other operating expenses | (3,845) | (1,668) |
| (1) | Corresponding to the investment plan’s readjustment bond at the Sierra Chata block. |
| 32 |
Free translation from the original prepared in Spanish for publication in Argentina
NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation) For the three-month period ended March 31, 2023, presented in comparative format. (In millions of Argentine Pesos (“$”))
|
NOTE 10: (Continuation)
10.5 Financial results
| 03.31.2023 | 03.31.2022 | |||
| Financial income | ||||
| Financial interest | 85 | 17 | ||
| Other interest | 108 | 229 | ||
| Total financial income | 193 | 246 | ||
| Financial costs | ||||
| Financial interests (1) | (11,398) | (3,502) | ||
| Commercial interests | (31) | (19) | ||
| Fiscal interests | (2,758) | (408) | ||
| Other interests | (166) | (75) | ||
| Bank and other financial expenses | (358) | (191) | ||
| Total financial costs | (14,711) | (4,195) | ||
| Other financial results | ||||
| Foreign currency exchange difference, net | 4,754 | 241 | ||
| Changes in the fair value of financial instruments | 10,165 | (129) | ||
| Result from present value measurement | (262) | (410) | ||
| Result from repurchase of corporate bonds | 30 | - | ||
| Other financial results | (44) | 9 | ||
| Total other financial results | 14,643 | (289) | ||
| Total financial results, net | 125 | (4,238) |
(1) Net of $ 953 million and $ 12 million capitalized in property, plant and equipment for the three-month periods ended March 31, 2023 and 2022, respectively.
| 33 |
Free translation from the original prepared in Spanish for publication in Argentina
NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation) For the three-month period ended March 31, 2023, presented in comparative format. (In millions of Argentine Pesos (“$”))
|
NOTE 10: (Continuation)
10.6 Income tax
The breakdown of income tax charge is:
| 03.31.2023 | 03.31.2022 | ||||
| Current tax | (185) | 5,504 | |||
| Deferred tax | (463) | (5,853) | |||
| Difference between previous fiscal year income tax provision and the income tax statement | 5 | 2 | |||
| Total income tax - Income | (643) | (347) |
Below is a reconciliation between income tax expense and the amount resulting from application of the tax rate on the profit before taxes:
| 03.31.2023 | 03.31.2022 | ||||
| Profit before income tax | 26,285 | 10,107 | |||
| Current income tax rate | 35% | 35% | |||
| Income tax at the statutary tax rate | 9,200 | 3,537 | |||
| Share of profit from companies | (1,120) | (856) | |||
| Non-taxable results | (1,147) | (131) | |||
| Effects of exchange differences and other results associated with the valuation of the currency, net | 14,623 | 3,631 | |||
| Effects of valuation of property, plant and equipment, intangible assets and financial assets | (35,748) | (12,018) | |||
| Effect for tax inflation adjustment | 13,322 | 4,741 | |||
| Non-deductible cost | 130 | 580 | |||
| Other | 97 | 169 | |||
| Total income tax - Income | (643) | (347) |
| 34 |
Free translation from the original prepared in Spanish for publication in Argentina
NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation) For the three-month period ended March 31, 2023, presented in comparative format. (In millions of Argentine Pesos (“$”))
|
NOTE 11: NON-FINANCIAL ASSETS ANF LIABILITIES
| 11.1 | Property, plant and equipment |
| Original values | |||||||||||||
| Type of good | At the beginning | Increases (1) | Transfers | Decreases | Traslation effect | ||||||||
| At the end | |||||||||||||
| Lands | 2,333 | - | - | - | 419 | 2,752 | |||||||
| Buildings | 25,253 | - | 387 | - | 4,605 | 30,245 | |||||||
| Equipment and machinery | 339,671 | 3 | 4,435 | (23) | 62,430 | 406,516 | |||||||
| Wells | 175,771 | 35 | 10,912 | (1,768) | 31,254 | 216,204 | |||||||
| Mining property | 32,077 | - | - | - | 5,766 | 37,843 | |||||||
| Vehicles | 1,365 | 284 | 13 | (29) | 284 | 1,917 | |||||||
| Furniture and fixtures and software equipment | 10,635 | 25 | 76 | - | 1,922 | 12,658 | |||||||
| Communication equipments | 223 | - | - | - | 40 | 263 | |||||||
| Materials, spare parts and tools | 6,304 | 4,358 | (3,749) | - | 1,619 | 8,532 | |||||||
| Petrochemical industrial complex | 5,158 | - | 209 | - | 933 | 6,300 | |||||||
| Work in progress | 44,316 | 16,354 | (15,052) | - | 6,718 | 52,336 | |||||||
| Advances to suppliers | 7,718 | 15,340 | (1,127) | (2) | 2,605 | 24,534 | |||||||
| Other goods | 635 | - | 3,896 | - | 947 | 5,478 | |||||||
| Total at 03.31.2023 | 651,459 | 36,399 | - | (1,822) | 119,542 | 805,578 | |||||||
| Total at 03.31.2022 | 311,688 | 7,878 | - | (16) | 25,445 | 344,995 | |||||||
(1) Includes $ 953 million and $12 million of financial costs capitalized in property, plant and equipment for the three-month periods ended March 31, 2023 and 2022, respectively.
| 35 |
Free translation from the original prepared in Spanish for publication in Argentina
NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation) For the three-month period ended March 31, 2023, presented in comparative format. (In millions of Argentine Pesos (“$”))
|
NOTE 11: (Continuation)
| Depreciation | Net book values | ||||||||||||||
| Type of good | At the beginning | Decreases | For the period | Traslation effect | At the end | At the end | At 12.31.2022 | ||||||||
| Lands | - | - | - | - | - | 2,752 | 2,333 | ||||||||
| Buildings | (13,342) | - | (363) | (2,440) | (16,145) | 14,100 | 11,911 | ||||||||
| Equipment and machinery | (113,166) | 22 | (6,006) | (22,120) | (141,270) | 265,246 | 226,505 | ||||||||
| Wells | (104,372) | 890 | (3,772) | (17,908) | (125,162) | 91,042 | 71,399 | ||||||||
| Mining property | (23,809) | - | (304) | (4,307) | (28,420) | 9,423 | 8,268 | ||||||||
| Vehicles | (865) | 21 | (54) | (156) | (1,054) | 863 | 500 | ||||||||
| Furniture and fixtures and software equipment | (9,137) | - | (224) | (1,663) | (11,024) | 1,634 | 1,498 | ||||||||
| Communication equipments | (174) | - | (6) | (32) | (212) | 51 | 49 | ||||||||
| Materials, spare parts and tools | (257) | - | (8) | (46) | (311) | 8,221 | 6,047 | ||||||||
| Petrochemical industrial complex | (2,664) | - | (236) | (499) | (3,399) | 2,901 | 2,494 | ||||||||
| Work in progress | - | - | - | - | - | 52,336 | 44,316 | ||||||||
| Advances to suppliers | - | - | - | - | - | 24,534 | 7,718 | ||||||||
| Other goods | (209) | - | (71) | (176) | (456) | 5,022 | 426 | ||||||||
| Total at 03.31.2023 | (267,995) | 933 | (11,044) | (49,347) | (327,453) | 478,125 | |||||||||
| Total at 03.31.2022 | (141,298) | 10 | (5,147) | (11,620) | (158,055) | 186,940 | |||||||||
| Total at 12.31.2022 | 383,464 | ||||||||||||||
| 36 |
Free translation from the original prepared in Spanish for publication in Argentina
NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation) For the three-month period ended March 31, 2023, presented in comparative format. (In millions of Argentine Pesos (“$”))
|
NOTE 11: (Continuation)
11.2 Intangible assets
| Original values | ||||||||||
| Type of good | At the beginning | Decrease | Impairment recovery (2) | Traslation effect | ||||||
| At the end | ||||||||||
| Concession agreements | 444 | - | - | 80 | 524 | |||||
| Goodwill | 6,131 | - | - | 1,102 | 7,233 | |||||
| Intangible identified in acquisitions of companies | 17,835 | - | - | 3,211 | 21,046 | |||||
| Digital assets | 1,172 | (1,626) | 411 | 43 | - | |||||
| Total at 03.31.2023 | 25,582 | (1,626) | 411 | 4,436 | 28,803 | |||||
| Total at 03.31.2022 | 4,530 | - | - | 366 | 4,896 | |||||
| Amortization | ||||||||||
| Type of good | At the beginning | For the period | Traslation effect | At the end | ||||||
| Concession agreements | (418) | (4) | (76) | (498) | ||||||
| Intangible identified in acquisitions of companies | (800) | (284) | (173) | (1,257) | ||||||
| Total at 03.31.2023 | (1,218) | (288) | (249) | (1,755) | ||||||
| Total at 03.31.2022 | (574) | (12) | (48) | (634) | ||||||
| Net book values | ||||||||||
| Type of good | At the end | At 12.31.2022 | ||||||||
| Concession agreements | 26 | 26 | ||||||||
| Goodwill | 7,233 | 6,131 | ||||||||
| Intangible identified in acquisitions of companies | 19,789 | 17,035 | ||||||||
| Digital assets | - | 1,172 | ||||||||
| Total at 03.31.2023 | 27,048 | |||||||||
| Total at 03.31.2022 | 4,262 | |||||||||
| Total at 12.31.2022 | 24,364 | |||||||||
| (1) | As of March 31, 2023, the sale of the digital assets at market price resulted in the recognition of an impairment recovery for $ 411 million. |
| 37 |
Free translation from the original prepared in Spanish for publication in Argentina
NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation) For the three-month period ended March 31, 2023, presented in comparative format. (In millions of Argentine Pesos (“$”))
|
NOTE 11: (Continuation)
11.3 Deferred tax assets and liabilities
The composition of the deferred tax assets and liabilities is as follows:
| 03.31.2023 | 12.31.2022 | |||
| Tax loss carryforwards | 3,074 | 3,294 | ||
| Property, plant and equipment | 34,163 | 26,765 | ||
| Intangible assets | 2 | 2 | ||
| Trade and other receivables | 556 | 592 | ||
| Provisions | 12,835 | 10,472 | ||
| Salaries and social security payable | 178 | 134 | ||
| Defined benefit plans | 1,953 | 1,356 | ||
| Trade and other payables | 39 | 40 | ||
| Other | 235 | 195 | ||
| Deferred tax asset | 53,035 | 42,850 | ||
| Property, plant and equipment | (14,148) | (14,021) | ||
| Intangible assets | (9,428) | (6,209) | ||
| Investments in companies | (1,332) | (1,332) | ||
| Inventories | (4,373) | (3,281) | ||
| Financial assets at fair value through profit and loss | (3,333) | (2,718) | ||
| Trade and other receivables | (3,918) | (3,928) | ||
| Tax liabilities | (322) | (322) | ||
| Tax inflation adjustment | (30,586) | (24,567) | ||
| Deferred tax liability | (67,440) | (56,378) |
Deferred tax assets and liabilities are offset only when there is a legally enforceable right to offset tax assets and liabilities; and when deferred income tax charges are associated with the same fiscal authority. Therefore, they are disclosed in the consolidated condensed interim statement of financial position:
| 03.31.2023 | 12.31.2022 | |||
| Deferred tax asset, net | 9,185 | 6,326 | ||
| Deferred tax liability, net | (23,590) | (19,854) |
| 38 |
Free translation from the original prepared in Spanish for publication in Argentina
NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation) For the three-month period ended March 31, 2023, presented in comparative format. (In millions of Argentine Pesos (“$”))
|
NOTE 11: (Continuation)
11.4 Inventories
| 03.31.2023 | 12.31.2022 | ||||
| Current | |||||
| Materials and spare parts | 23,488 | 18,489 | |||
| Advances to suppliers | 950 | 1,458 | |||
| In process and finished products | 15,654 | 10,777 | |||
| Total (1) | 40,092 | 30,724 |
(1) It includes impairment loss as a result of the performed recoverability assessment for $ 9 million and $ 463 million (US$ 2 million) as of March 31, 2022 and December 31, 2022. There is no impairment as of March 31, 2023.
11.5 Provisions
| 03.31.2023 | 12.31.2022 | |||
| Non-Current | ||||
| Contingencies | 22,682 | 19,031 | ||
| Asset retirement obligation and wind turbines decommisioning | 4,426 | 4,453 | ||
| Environmental remediation | 3,005 | 2,578 | ||
| Other provisions | 794 | - | ||
| Total non-current | 30,907 | 26,062 | ||
| Current | ||||
| Contingencies | 18 | 16 | ||
| Asset retirement obligation and wind turbines decommisioning | 481 | 400 | ||
| Environmental remediation | 401 | 357 | ||
| Other provisions | 9 | 6 | ||
| Total current | 909 | 779 |
| 39 |
Free translation from the original prepared in Spanish for publication in Argentina
NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation) For the three-month period ended March 31, 2023, presented in comparative format. (In millions of Argentine Pesos (“$”))
|
NOTE 11: (Continuation)
The evolution of provisions is shown below:
| 03.31.2023 | ||||||
| Contingencies | Asset retirement obligation and wind turbines decommisioning | Environmental remediation | ||||
| At the beginning of the year | 19,047 | 4,853 | 2,935 | |||
| Increases | 368 | 154 | 51 | |||
| Decreases | (43) | - | (49) | |||
| Exchange differences on translation | 3,330 | 818 | 511 | |||
| Reversal of unused amounts | (2) | (918) | (42) | |||
| At the end of the period | 22,700 | 4,907 | 3,406 | |||
| 03.31.2022 | ||||||
| Contingencies | Asset retirement obligation and decommisioning of wind turbines | Environmental remediation | ||||
| At the beginning of the year | 10,887 | 2,217 | 1,805 | |||
| Increases | 111 | 58 | 22 | |||
| Decreases | (13) | - | (5) | |||
| Exchange differences on translation | 815 | 181 | 142 | |||
| At the end of the period | 11,800 | 2,456 | 1,964 | |||
| 40 |
Free translation from the original prepared in Spanish for publication in Argentina
NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation) For the three-month period ended March 31, 2023, presented in comparative format. (In millions of Argentine Pesos (“$”))
|
NOTE 11: (Continuation)
11.6 Income tax and minimum notional income tax provision
| 03.31.2023 | 12.31.2022 | ||||
| Non-current | |||||
| Income tax, net of witholdings | 32,296 | 28,568 | |||
| Minimum notional income tax | 3,423 | 3,160 | |||
| Total non-current | 35,719 | 31,728 | |||
| Current | |||||
| Income tax, net of witholdings and advances | 506 | 927 | |||
| Total current | 506 | 927 |
NOTE 12: FINANCIAL ASSETS AND LIABILITIES
| 12.1 | Financial assets at amortized cost |
| 03.31.2023 | 12.31.2022 | ||||
| Non-current | |||||
| Term deposit | 21,038 | 17,823 | |||
| Notes receivable | - | 177 | |||
| Total non-current | 21,038 | 18,000 | |||
| Current | |||||
| Notes receivable | 3,485 | 1,357 | |||
| Total current | 3,485 | 1,357 |
| 41 |
Free translation from the original prepared in Spanish for publication in Argentina
NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation) For the three-month period ended March 31, 2023, presented in comparative format. (In millions of Argentine Pesos (“$”))
|
NOTE 12: (Continuation)
| 12.2 | Financial assets at fair value through profit and loss |
| 03.31.2023 | 12.31.2022 | ||||
| Non-current | |||||
| Shares | 5,742 | 4,867 | |||
| Total non-current | 5,742 | 4,867 | |||
| Current | |||||
| Government securities | 73,450 | 36,281 | |||
| Corporate bonds | 22,002 | 33,600 | |||
| Shares | 30,702 | 28,422 | |||
| Mutual funds | 4,626 | 5,553 | |||
| Total current | 130,780 | 103,856 |
| 12.3 | Trade and other receivables |
| Note | 03.31.2023 | 12.31.2022 | |||
| Non-Current | |||||
| Other | 14 | 12 | |||
| Trade receivables | 14 | 12 | |||
| Non-Current | |||||
| Related parties | 16 | 3,335 | 3,098 | ||
| Advances to suppliers | 685 | - | |||
| Tax credits | 547 | 285 | |||
| Prepaid expenses | 31 | 14 | |||
| Contractual indemnity credit | 1,020 | - | |||
| Other | 191 | 6 | |||
| Other receivables | 5,809 | 3,403 | |||
| Total non-current | 5,823 | 3,415 |
| 42 |
Free translation from the original prepared in Spanish for publication in Argentina
NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation) For the three-month period ended March 31, 2023, presented in comparative format. (In millions of Argentine Pesos (“$”))
|
NOTE 12: (Continuation)
| Note | 03.31.2023 | 12.31.2022 | |||
| Current | |||||
| Receivables from MAT sales | 3,858 | 3,689 | |||
| CAMMESA | 46,169 | 29,315 | |||
| Receivables from oil and gas sales | 12,528 | 9,788 | |||
| Receivables from petrochemicals sales | 10,539 | 10,931 | |||
| Related parties | 16 | 972 | 848 | ||
| Other | 345 | 496 | |||
| Impairment of financial assets | (1,159) | (1,039) | |||
| Trade receivables, net | 73,252 | 54,028 | |||
| Current | |||||
| Related parties | 16 | 1,431 | 1,183 | ||
| Tax credits | 2,648 | 2,555 | |||
| Receivables for complementary activities | 158 | 57 | |||
| Prepaid expenses | 4,234 | 2,525 | |||
| Guarantee deposits | 1,452 | 4,870 | |||
| Expenses to be recovered | 2,841 | 2,611 | |||
| Receivables for acquisition of subsidiary | 1,182 | 1,182 | |||
| Receivables for sale of subsidiary and associates | 848 | 719 | |||
| Receivables for financial instruments sale | - | 150 | |||
| Argentine Natural Gas Production Promotion Plan | 4,812 | 5,721 | |||
| Advances to suppliers | 2,738 | - | |||
| Receivables for arbitration award | 3,610 | 6,621 | |||
| Contractual indemnity credit | 340 | - | |||
| Other | 1,157 | 1,144 | |||
| Impairment of other receivables | (20) | (38) | |||
| Other receivables, net | 27,431 | 29,300 | |||
| Total current | 100,683 | 83,328 |
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.
| 43 |
Free translation from the original prepared in Spanish for publication in Argentina
NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation) For the three-month period ended March 31, 2023, presented in comparative format. (In millions of Argentine Pesos (“$”))
|
NOTE 12: (Continuation)
The movements in the impairment of financial assets are as follows:
| 03.31.2023 | 03.31.2022 | ||||
| At the beginning of the year | 1,039 | 963 | |||
| Impairment | 91 | 44 | |||
| Reversal of unused amounts | (6) | - | |||
| Exchange differences on translation | 35 | 6 | |||
| At the end of the period | 1,159 | 1,013 |
The movements in the impairment of other receivables are as follows:
| 03.31.2023 | 03.31.2022 | ||||
| At the beginning of the year | 38 | 12 | |||
| Impairment | 1 | 5 | |||
| Reversal of unused amounts | (24) | - | |||
| Exchange differences on translation | 5 | (1) | |||
| At the end of the period | 20 | 16 |
| 12.4 | Cash and cash equivalents |
| 03.31.2023 | 12.31.2022 | ||||
| Cash | 43 | 28 | |||
| Banks | 6,829 | 1,958 | |||
| Mutual funds | 19,426 | 16,771 | |||
| Total | 26,298 | 18,757 |
| 44 |
Free translation from the original prepared in Spanish for publication in Argentina
NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation) For the three-month period ended March 31, 2023, presented in comparative format. (In millions of Argentine Pesos (“$”))
|
NOTE 12: (Continuation)
| 12.5 | Borrowings |
| 03.31.2023 | 12.31.2022 | ||||
| Non-Current | |||||
| Financial borrowings | 21,826 | 19,088 | |||
| Corporate bonds | 259,548 | 218,349 | |||
| Total non-current | 281,374 | 237,437 | |||
| Current | |||||
| Bank overdrafts | - | 10,514 | |||
| Financial borrowings | 11,530 | 8,970 | |||
| Corporate bonds | 56,452 | 28,845 | |||
| Total current | 67,982 | 48,329 | |||
| Total | 349,356 | 285,766 |
As of March 31, 2023, and December 31, 2022 the fair value of the Company’s CB amount approximately to $ 316,061 million and $ 240,194 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 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.
| 45 |
Free translation from the original prepared in Spanish for publication in Argentina
NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation) For the three-month period ended March 31, 2023, presented in comparative format. (In millions of Argentine Pesos (“$”))
|
NOTE 12: (Continuation)
The evolution of the consolidated loans over the three-month periods ended March 31, 2023 and 2022 is disclosed below.
| 03.31.2023 | 03.31.2022 | ||||
| At the beginning of the year | 285,766 | 147,795 | |||
| Proceeds from borrowings | 28,783 | 2,564 | |||
| Payment of borrowings | (11,465) | - | |||
| Accrued interest | 11,396 | 3,504 | |||
| Payment of interests | (10,055) | (4,327) | |||
| Repurchase of corporate bonds | (586) | - | |||
| Result from repurchase of corporate bonds | (30) | - | |||
| Foreign currency exchange difference | (7,432) | (472) | |||
| Borrowing costs capitalized in property, plant and equipment | 953 | 12 | |||
| Exchange differences on translation | 52,026 | 12,118 | |||
| At the end of the period | 349,356 | 161,194 |
12.5.1 Issuance of CB
On January 11, 2023, the Company issued Class 15 CB for $ 10,379 million accruing interest at a variable BADLAR rate plus an annual 2% spread and maturing on July 11, 2024. Subsequently, on March 6, 2023, the Company reopened Class 13 and Class 15 CB for US$ 48.2 million and $ 7,885 million, respectively.
After the period closing, on May 4, 2023, the Company issued Class 16 CB for US$ 55.7 million accruing interest at a fixed Badlar rate 4.99%, maturing on November 4, 2025, and Class 17 CB for $ 5,980 million accruing interest at a variable BADLAR rate plus an annual 2% spread and maturing on May 4, 2024. Class 17 CB are the second green bond issued by Pampa, which reflects the commitment to finance projects with a positive impact on the environment and to diversify the country’s energy generation matrix. The issue of Class 17 CB was recognised by Fix Ratings, an affiliate of Fitch Ratings, with the rating of Green Bond (BV1), the best possible grade, since it is aligned with the four main components of ICMA’s (International Capital Market Association) Green Bond Principles (GBP). It was issued in observance of the “Guidelines for the Issuance of Social, Green and Sustainable Bonds in Argentina” of the CNV Rules and the provisions of BYMA’s Social, Green and Sustainable Guide and the BYMA Rules, and also makes up BYMA’s Social, Green and Sustainable Bonds Panel. The Company will allocate the issue’s proceeds form Class 17 CB to finance the expansion of PEPE VI wind farm.
| 46 |
Free translation from the original prepared in Spanish for publication in Argentina
NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation) For the three-month period ended March 31, 2023, presented in comparative format. (In millions of Argentine Pesos (“$”))
|
NOTE 12: (Continuation)
12.5.2 Financial loans
During the three-month period ended March 31, 2023, the Company repaid short-term bank loans with local financial entities for $ 10,065 million and took out net short-term import financing for US$ 1.6 million. After the period closing, the Company took out short-term bank loans with local financial entities for $ 36,168 million and repaid import financing for US$ 5.6 million.
| 12.6 | Trade and other payables |
| Note | 03.31.2023 | 12.31.2022 | |||
| Non-Current | |||||
| Customer guarantees | 5 | 4 | |||
| Trade payables | 5 | 4 | |||
| Compensation agreements | 2,617 | 1,769 | |||
| Finance leases liability | 1,986 | 1,789 | |||
| Contractual penalty debt | 1,020 | - | |||
| Other | 185 | 195 | |||
| Other payables | 5,808 | 3,753 | |||
| Total non-current | 5,813 | 3,757 | |||
| Current | |||||
| Suppliers | 52,165 | 35,109 | |||
| Customer advances | 801 | 644 | |||
| Related parties | 16 | 4,802 | 2,506 | ||
| Trade payables | 57,768 | 38,259 | |||
| Compensation agreements | 2,543 | 2,085 | |||
| Liability for acquisition of companies | 7,206 | 8,144 | |||
| Finance leases liability | 373 | 319 | |||
| Investment plan readjustment liability | 666 | 807 | |||
| Contractual penalty debt | 340 | ||||
| Other | 139 | 117 | |||
| Other payables | 11,267 | 11,472 | |||
| Total current | 69,035 | 49,731 |
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.
| 47 |
Free translation from the original prepared in Spanish for publication in Argentina
NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation) For the three-month period ended March 31, 2023, presented in comparative format. (In millions of Argentine Pesos (“$”))
|
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 March 31, 2023 and December 31, 2022:
| As of March 31, 2023 | Level 1 | Level 2 | Level 3 | Total | ||||
| Assets | ||||||||
| Financial assets at fair value through profit and losss |
||||||||
| Government securities | 73,450 | - | - | 73,450 | ||||
| Corporate bonds | 22,002 | - | - | 22,002 | ||||
| Mutual funds | 4,626 | - | - | 4,626 | ||||
| Shares | 30,702 | - | 5,742 | 36,444 | ||||
| Cash and cash equivalents | ||||||||
| Mutual funds | 19,426 | - | - | 19,426 | ||||
| Derivative financial instruments | - | 187 | - | 187 | ||||
| Other receivables | ||||||||
| Guarantee deposits on derivative financial instruments | 1,119 | - | - | 1,119 | ||||
| Total assets | 151,325 | 187 | 5,742 | 157,254 | ||||
| Liabilities | ||||||||
| Derivative financial instruments | - | 371 | - | 371 | ||||
| Total liabilities | - | 371 | - | 371 | ||||
| As of December 31, 2022 | Level 1 | Level 2 | Level 3 | Total | ||||
| Assets | ||||||||
| Financial assets at fair value through profit and losss |
||||||||
| Government securities | 36,281 | - | - | 36,281 | ||||
| Corporate bonds | 33,600 | - | - | 33,600 | ||||
| Mutual funds | 5,553 | - | - | 5,553 | ||||
| Shares | 28,422 | - | 4,867 | 33,289 | ||||
| Cash and cash equivalents | ||||||||
| Mutual funds | 16,771 | - | - | 16,771 | ||||
| Derivative financial instruments | - | 161 | - | 161 | ||||
| Other receivables | ||||||||
| Guarantee deposits on derivative financial instruments | 3,823 | - | - | 3,823 | ||||
| Total assets | 124,450 | 161 | 4,867 | 129,478 | ||||
| Liabilities | ||||||||
| Derivative financial instruments | - | 318 | - | 318 | ||||
| Total liabilities | - | 318 | - | 318 |
| 48 |
Free translation from the original prepared in Spanish for publication in Argentina
NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation) For the three-month period ended March 31, 2023, presented in comparative format. (In millions of Argentine Pesos (“$”))
|
NOTE 12: (Continuation)
The techniques used for the measurement of assets and liabilities at fair value through profit and loss, classified as Level 2 and 3, are detailed below:
| - | Derivative Financial Instruments: calculated from variations between market prices at the closing date of the period, and the amount at the time of the contract. |
| - | Shares: it was determined using the income-based approach through the “Indirect Cash Flow” method, that is, the net present value of expected future cash flows, mainly through the collection of dividends taking into consideration the 4.04% and 4.55% equity interest, direct and indirect, in TJSM and TMB, respectively. |
NOTE 13: EQUITY COMPONENTS
| 13.1 | Share Capital |
As of March 31, 2023, the capital stock amounts to $ 1,384 million, including $ 4 million of treasury shares.
The Company is reached by CNV General Resolution No. 941/22, as it has previously adopted a specific accounting policy regarding the foreign-currency translation of financial statements. To comply with the provisions established by this resolution, the breakdown of the translation differences originated in share capital and capital adjustment accounts are detailed below:
| 03.31.2023 | ||||
| Share capital | Share capital adjustment | |||
| At the beginning of the year | 5,117 | 26,760 | ||
| Variation of the period | 1,167 | 6,111 | ||
| At the end of the period | 6,284 | 32,871 | ||
| 12.31.2022 | ||||
| Share capital | Share capital adjustment | |||
| At the beginning of the year | 2,392 | 12,503 | ||
| Variation of the period | 2,725 | 14,257 | ||
| At the end of the period | 5,117 | 26,760 | ||
| 49 |
Free translation from the original prepared in Spanish for publication in Argentina
NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation) For the three-month period ended March 31, 2023, presented in comparative format. (In millions of Argentine Pesos (“$”))
|
NOTE 13: (Continuation)
| 13.2 | Earning per share |
Basic earnings per share are calculated by dividing the result attributable to the Company’s equity holders by the weighted average of outstanding common shares during the year. Diluted earnings per share are calculated by adjusting the weighted average of outstanding common shares to reflect the conversion of all dilutive potential common shares.
Potential common shares will be deemed dilutive only when their conversion into common shares may reduce the earnings per share or increase losses per share of the continuing business. Potential common shares will be deemed anti-dilutive when their conversion into common shares may result in an increase in the earnings per share or a decrease in the losses per share of the continuing operations.
The calculation of diluted earnings per share does not entail a conversion, the exercise or another issuance of shares which may have an anti-dilutive effect on the losses per share, and where the option exercise price is higher than the average price of ordinary shares during the period, no dilutive effect is recorded, being the diluted earning per share equal to the basic. As of March 31, 2023 and 2022, the Company does not hold any significant potential dilutive shares, therefore there are no differences with the basic earnings per share.
| 03.31.2023 | 03.31.2022 | ||||
| Earning for continuing operations attributable to equity holders of the Company | 26,918 | 10,304 | |||
| Weighted average amount of outstanding shares | 1,380 | 1,382 | |||
| Basic and diluted earnings per share from continued operations | 19.51 | 7.46 |
| 50 |
Free translation from the original prepared in Spanish for publication in Argentina
NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation) For the three-month period ended March 31, 2023, presented in comparative format. (In millions of Argentine Pesos (“$”))
|
NOTE 14: STATEMENT OF CASH FLOWS’ COMPLEMENTARY INFORMATION
| 14.1 | Adjustments to reconcilie net profit to cash flows from operating activities |
| Note | 03.31.2023 | 03.31.2022 | |||
| Income tax | 10.6 | (643) | (347) | ||
| Accrued interest | 11,428 | 3,333 | |||
| Depreciations and amortizations | 9, 10.1 and 10.2 | 11,369 | 5,374 | ||
| Share of profit of joint ventures and associates | 5.1.2 | (3,200) | (2,682) | ||
| Results for property, plant and equipment sale and derecognition | 10.4 | (32) | 31 | ||
| Result for intangible assets sale | 10.4 | - | (252) | ||
| Impairment recovery (Impairment) of intangible assets and inventories | (411) | 9 | |||
| Impairment of financial assets | 291 | 127 | |||
| Result from measurement at present value | 10.5 | 262 | 410 | ||
| Changes in the fair value of financial instruments | (9,099) | 164 | |||
| Exchange differences, net | (5,258) | (241) | |||
| Result from repurchase of corporate bonds | 10.5 | (30) | - | ||
| Readjustment of investment plan | 10.4 | - | 1,011 | ||
| Costs of concessions agreements completion | 10.4 | 794 | - | ||
| Contractual indemnity | 10.4 | (1,360) | - | ||
| Contractual penalty | 10.4 | 1,360 | - | ||
| Recovery of tax charges | 10.4 | (4) | (7) | ||
| Provision for contingecies, net | 10.4 | 248 | 52 | ||
| Provision for environmental remediation | 10.4 | 10 | - | ||
| Accrual of defined benefit plans | 9 and 10.2 | 1,820 | 440 | ||
| Compensation agreements | 10.2 | 865 | 310 | ||
| Other | (360) | 1 | |||
| Adjustments to reconcile net profit to cash flows from operating activities | 8,050 | 7,733 |
| 51 |
Free translation from the original prepared in Spanish for publication in Argentina
NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation) For the three-month period ended March 31, 2023, presented in comparative format. (In millions of Argentine Pesos (“$”))
|
NOTE 14: (Continuation)
| 14.2 | Changes in operating assets and liabilities |
| 03.31.2023 | 03.31.2022 | ||||
| Increase in trade receivables and other receivables | (6,265) | (2,044) | |||
| Increase in inventories | (4,532) | (3,058) | |||
| Increase in trade payables and other payables | 9,576 | 333 | |||
| Decrease in salaries and social security payables | (1,123) | (895) | |||
| Decrease in defined benefit plans | (62) | (80) | |||
| Increase in tax liabilities | 771 | 238 | |||
| Decrease in provisions | (381) | (82) | |||
| Income tax payment | (395) | (156) | |||
| (Payments) Collections for derivative financial instruments, net | (25) | 199 | |||
| Changes in operating assets and liabilities | (2,436) | (5,545) | |||
| 14.3 | Significant non-cash transactions |
| 03.31.2023 | 03.31.2022 | ||||
| Acquisition of property, plant and equipment through an increase in trade payables | (13,401) | (5,272) | |||
| Borrowing costs capitalized in property, plant and equipment | (953) | (12) | |||
| Receivables for acquisition of subsidiary | 1,182 | - | |||
| Dividends pending collection | - | 598 | |||
| Decrease in asset retirement obligation through property, plant and equipment | (878) | - | |||
| Compensation of compensation plans through a decrease in other receivables | (41) | - |
| 52 |
Free translation from the original prepared in Spanish for publication in Argentina
NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation) For the three-month period ended March 31, 2023, presented in comparative format. (In millions of Argentine Pesos (“$”))
|
NOTE 15: CONTINGENT LIABILITIES AND ASSETS
The main changes for the three-month period ended March 31, 2023 regarding contingent liabilities disclosed in the Consolidated Financial Statements as of December 31, 2022 are detailed below:
15.1 Labor claim - Compensation Fund
Regarding one of the claims on alleged underfunding of the plan upon the elimination of the Company’s contributions based on earnings, the Supreme Court of Justice of the Autonomous City of Buenos Aires asked the Chamber of Commercial Appeals to transfer the proceedings to hear the unconstitutionality appeal filed by the Company.
15.2 Environmental claims
| - | In the proceeding where Fundación SurfRider Argentina has requested the performance of preliminary proceedings due to alleged indications of environmental damage in the City of Mar del Plata, the partial agreement reached between the plaintiff and a co-defendant was ratified, and the proposal submitted by other two co-defendants is in the trial stage. On the other side, the Company has requested to be severed from the proceeding as it did not own any service station during the claim period. |
| - | In the proceeding brought by a neighbor of the Province of Salta owning a lot where a joint venture made up of the plaintiffs (the Company and other companies) conducted hydrocarbon activities, the Province of Salta became a co-defendant instead of a third party. |
| 53 |
Free translation from the original prepared in Spanish for publication in Argentina
NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation) For the three-month period ended March 31, 2023, presented in comparative format. (In millions of Argentine Pesos (“$”))
|
NOTA 16: RELATED PARTIES´ BALANCES AND TRANSACTIONS
16.1 Balances with related parties
| As of March 31, 2023 | Trade receivables | Other receivables | Trade payables | |||||
| Current | Non Current | Current | Current | |||||
| Associates and joint ventures | ||||||||
| CTB | 39 | - | - | - | ||||
| TGS | 903 | 3,335 | 1,273 | 1,500 | ||||
| Transener | 9 | - | 25 | 1 | ||||
| Other | - | - | - | 2 | ||||
| Other related parties | ||||||||
| SACDE | 21 | - | 15 | 3,299 | ||||
| Other | - | - | 118 | - | ||||
| 972 | 3,335 | 1,431 | 4,802 | |||||
| As of December 31, 2022 | Trade receivables | Other receivables | Trade payables | |||||
| Current | Non Current | Current | Current | |||||
| Associates and joint ventures | ||||||||
| CTB | 34 | - | - | - | ||||
| TGS | 806 | 3,098 | 1,059 | 1,206 | ||||
| Transener | 4 | - | 12 | 1 | ||||
| Other | - | - | - | 2 | ||||
| Other related parties | ||||||||
| SACDE | 4 | - | 12 | 1,297 | ||||
| Other | - | - | 100 | - | ||||
| 848 | 3,098 | 1,183 | 2,506 | |||||
| 54 |
Free translation from the original prepared in Spanish for publication in Argentina
NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation) For the three-month period ended March 31, 2023, presented in comparative format. (In millions of Argentine Pesos (“$”))
|
NOTE 16: (Continuation)
16.2 Operations with related parties
Operations for the three-month period |
Sales of goods and services (1) |
Purchases of goods and services (2) | Fees for services (3) | Other operating income (expenses), net (4) | |||||||||||||
| 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | ||||||||||
| Associates and joint ventures | |||||||||||||||||
| CTB | 89 | 43 | - | - | - | - | - | - | |||||||||
| Greenwind | - | 19 | - | - | - | - | - | - | |||||||||
| Refinor | - | 281 | - | (1,262) | - | - | - | - | |||||||||
| TGS | 2,175 | 1,284 | (2,285) | (997) | - | - | - | - | |||||||||
| Transener | - | - | (6) | (3) | - | - | 19 | - | |||||||||
| Other related parties | |||||||||||||||||
| Fundación | - | - | - | - | - | - | (72) | - | (27) | ||||||||
| SACDE | - | - | (3,607) | (2,539) | - | - | 17 | 3 | |||||||||
| Salaverri, Dellatorre, Burgio & Wetzler | - | - | - | - | (9) | - | (18) | - | - | ||||||||
| Other | - | - | (10) | - | - | - | - | - | - | ||||||||
| 2,264 | 1,627 | (5,908) | (4,801) | (9) | (18) | (36) | (24) | ||||||||||
| (1) | Corresponds 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 $ 2,301 million and $ 2,339 million and infrastructure works contracted to SACDE imputed to property, plant and equipment for $ 3,607 million and $ 2,462 million, of which $ 2,417 million and $ 702 million correspond to fees and general expenses calculated on the costs incurred by SACDE and/or Pampa to carry the works out for the three-month period ended March 31, 2023 and 2022, respectively. |
| (3) | Disclosed within administrative expenses. |
| (4) | Corresponds mainly to donations expenses and operating leases income. |
Operations for the three-month period |
Financial income (1) | Financial expenses (2) | Dividends received | |||||||||
| 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |||||||
| Associates and joint ventures | ||||||||||||
| OCP | - | - | - | - | - | 844 | ||||||
| TGS | 88 | 60 | - | - | - | - | ||||||
| Other related parties | ||||||||||||
| Other | - | - | (6) | - | - | - | ||||||
| 88 | 60 | (6) | - | - | 844 | |||||||
| (1) | Corresponds mainly to financial leases and accrued interest on loans granted. |
| (2) | Corresponds to interest and commissions on loans received. |
| 55 |
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation) For the three-month period ended March 31, 2023, presented in comparative format. (In millions of Argentine Pesos (“$”))
|
NOTE 17: ASSETS AND LIABILITIES IN CURRENCIES OTHER THAN PESOS (1)
| Type | Amount in currencies other than pesos | Exchange rate (2) | Total 03.31.2023 |
Total 12.31.2022 | |||||
| ASSETS | |||||||||
| NON-CURRENT ASSETS | |||||||||
| Financial assets at amortized cost | US$ | 100.7 | 209.01 | 21,038 | 18,000 | ||||
| Other receivables | US$ | 25.0 | 209.01 | 5,224 | 3,099 | ||||
| Total non-current assets | 26,262 | 21,099 | |||||||
| CURRENT ASSETS | |||||||||
| Financial assets at fair value through profit and loss | US$ | 518.9 | 209.01 | 108,446 | 83,477 | ||||
| U$ | - | - | - | 1 | |||||
| Financial assets at amortized cost | US$ | 16.7 | 209.01 | 3,485 | 1,357 | ||||
| Derivative financial instruments | US$ | 0.8 | 209.01 | 175 | 149 | ||||
| Trade and other receivables | US$ | 200.1 | 209.01 | 41,815 | 38,960 | ||||
| Cash and cash equivalents | US$ | 92.7 | 209.01 | 19,378 | 13,602 | ||||
| EUR | - | - | - | 1 | |||||
| Total current assets | 173,299 | 137,547 | |||||||
| Total assets | 199,561 | 158,646 | |||||||
| LIABILITIES | |||||||||
| NON-CURRENT LIABILITIES | |||||||||
| Provisions | US$ | 140.4 | 209.01 | 29,350 | 25,492 | ||||
| Borrowings | US$ | 1,258.9 | 209.01 | 263,130 | 215,786 | ||||
| Other payables | US$ | 27.0 | 209.01 | 5,640 | 3,572 | ||||
| Total non-current liabilities | 298,120 | 244,850 | |||||||
| CURRENT LIABILITIES | |||||||||
| Provisions | US$ | 3.9 | 209.01 | 815 | 741 | ||||
| Tax liabilities | US$ | 0.13 | 209.01 | 26 | 6 | ||||
| Salaries and social security payable | US$ | 2.3 | 209.01 | 471 | 16 | ||||
| Derivative financial instruments | US$ | 1.78 | 209.01 | 371 | 318 | ||||
| Borrowings | US$ | 176.7 | 209.01 | 36,924 | 31,180 | ||||
| Trade and other payables | US$ | 244.8 | 209.01 | 51,172 | 35,461 | ||||
| EUR | 4.1 | 227.03 | 926 | 548 | |||||
| CHF | 0.015 | 228.53 | 3 | - | |||||
| BOB | 0.04 | 30.25 | 1 | - | |||||
| U$ | 0.12 | 5.41 | 1 | - | |||||
| SEK | 0.2 | 20.15 | 5 | - | |||||
| Total current liabilities | 90,715 | 68,270 | |||||||
| Total liabilities | 388,835 | 313,120 | |||||||
| Net Position Liability | (189,274) | (154,474) |
| (1) | Information presented to comply with CNV Rules. |
| (2) | Exchange rate in force on March 31, 2023 according to the BNA for U.S. dollars (US$), Euros (EUR), Swedish crowns (SEK), Swiss francs (CHF), Bolivian pesos (BOB) and Uruguayan pesos (U$). |
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Free translation from the original prepared in Spanish for publication in Argentina
NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation) For the three-month period ended March 31, 2023, presented in comparative format. (In millions of Argentine Pesos (“$”))
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NOTA 18: INVESTMENT COMMITMENTS
New generation projects
PEPE IV
In early 2022, works started for the expansion of PEPE III, inaugurated in 2019, which production is targeted at the large users’ segment.
The project will mainly consist of the mounting and installation (in stages) of 18 additional wind turbines, adding a capacity of 81 MW; therefore, once works are completed, PEPE III and PEPE IV will have an installed capacity of 134.2 MW.
On February 25, 2023, took place the commissioning of 4 additional wind turbines with an incremental capacity of 18 MW.
After the period closing, on April 4, 2023, 2 additional wind turbines were commissioned with a capacity of 9 MW.
PEPE VI
In February 2023, the Company started constructing Pampa Energía VI Wind Farm in Bahía Blanca, Province of Buenos Aires. The project will enable the installation of a 300 MW power capacity, in 3 stages, with an estimated US$ 500 million investment.
Stage 1 comprises the mounting and installation of 21 Vestas wind turbines, with their internal medium-voltage cable network, roads, a substation and a 500 KV line allowing for a 94.5 MW capacity addition, with an investment for US$ 186 million, expected to be operative during the third quarter of 2024.
Stage 2 comprises the mounting and installation of 10 Vestas wind turbines allowing for a 45 MW capacity addition, with an investment for US$ 89 million, expected to be operative during the fourth quarter of 2024.
The energy produced by this wind park allows for reduced carbon emissions and will be sold through the MATER to supply large companies in the country in compliance with the Renewable Energy Law.
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Free translation from the original prepared in Spanish for publication in Argentina
NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation) For the three-month period ended March 31, 2023, presented in comparative format. (In millions of Argentine Pesos (“$”))
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NOTE 19: 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 20: SUBSEQUENT EVENTS
General Ordinary and Extraordinary Shareholders’ Meeting
On April 26, 2023, the Company’s General Ordinary and Extraordinary Shareholders’ Meeting resolved:
| - | To approve the allocation of results for the fiscal year ended December 31, 2022, which amounted to a $ 64,859 million profit which, added to appropriated translation differences in the amount of $ 19,646 million, total positive retained earnings for $ 84,505 million, resolving : (i) to disaffect $ 16 million from the legal reserve for having exceeded the legal limit of 20% of the share capital considering the associated translation differences and to allocated it to the voluntary reserve; and (ii) to allocate the amount of $ 84,505 million, to the voluntary reserve. |
| - | To reduce the capital stock through the cancellation of 20.1 million shares, which is pending registration with the Public Registry as of the date of issuance of these Consolidated Condensed Interim Financial Statements. |
Series T CB redemption
On May 5, 2023, the Company announced the redemption of all Series T CB maturing on July 21, 2023, which outstanding balance amounts to US$ 92.9 million.
The redemption will operate on June 8, 2023 at a redemption price equal to 100% of the outstanding capital amount, plus interest accrued and unpaid until the redemption date, and plus the applicable additional amounts under the Series T CB’s trust agreement.
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