Pampa Energy Inc 6-K, filed May 6, 2026
Pampa Energy Inc. (PAM)
About this 6-K
Pampa Energy Inc filed this 6-K on May 6, 2026.
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, 2026
(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 (US$)
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Date: May 6, 2026
| Pampa Energía S.A. | ||
| By: |
/s/ Gustavo Mariani |
|
|
Name: Gustavo Mariani Title: Chief Executive Officer |
||
FORWARD-LOOKING STATEMENTS
This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates offuture economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will a ctually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.
UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS
AS OF MARCH 31, 2026
AND FOR THE THREE-MONTH PERIOD THEN ENDED
PRESENTED ON COMPARATIVE BASIS
(In millions of U.S. dollar (“US$”))
 |
GLOSSARY OF TERMS
The following are not technical definitions, but they are helpful for the reader’s understanding of some terms used in the notes to the Unaudited Consolidated Condensed Interim Financial Statements of the Company.
| Terms | Definitions |
| ADR | American Depositary Receipt |
| BCBA | Buenos Aires Stock Exchange |
| BBL | Barrel |
| BO | Official Gazette |
| CAMMESA | Compañía Administradora del Mercado Eléctrico Mayorista S.A. |
| CB | Corporate Bonds |
| CIESA | Compañía de Inversiones de Energía S.A. |
| CITELEC | Compañía Inversora en Transmisión Eléctrica Citelec S.A. |
| CNV | National Securities Commission of Argentina |
| CPB | Central Térmica Piedra Buena |
| CPI | Consumer's price index |
| CSJN | Argentina’ Supreme Court of Justice |
| CTB | CT Barragán S.A |
| CTG | Central Térmica Güemes |
| CTGEBA | Central Térmica Genelba |
| CTIW | Central Térmica Ingeniero White |
| CTLL | Central Térmica Loma de la Lata |
| CTPP | Central Térmica Parque Pilar |
| EISA | Energía Inversora S.A. |
| ENARGAS | National Regulatory Authority of Gas |
| ENARSA | Energía Argentina S.A. |
| ENRE | National Regulatory Authority of Electricity |
| FEPASAU | Fértil Pampa S.A.U. |
| FTR | Five-Year Tariff Review |
| GASA | Generación Argentina S.A. |
| HIDISA | Hidroeléctrica Diamante S.A. |
| 1 |
| |
GLOSSARY OF TERMS: (Continuation)
| Terms | Definitions |
| HINISA | Hidroeléctrica Los Nihuiles S.A. |
| HPPL | Hidroeléctrica Pichi Picún Leufú |
| IAS | International Accounting Standards |
| IASB | International Accounting Standards Board |
| IFRS | International Financial Reporting Standards |
| IPIM | Wholesale Domestic Price Index |
| LNG | Liquefied Natural Gas |
| m3 | Cubic meters |
| MAT | WEM’s Forward Market |
| MW | Megawatt |
| MWh | Megawatt/hour |
| NYSE | New York Stock Exchange |
| OCP | Oleoductos de Crudos Pesados Ltd |
| Oldelval | Oleoductos del Valle S.A. |
| OPGSA | Operaciones de Petróleo y Gas S.A. (formerly Autotrol Renovables S.A.) |
| PB18 | Pampa Bloque 18 S.A. |
| PEB | Pampa Energía Bolivia S.A. |
| PECSA | Pampa Energía Chile S.p.A. |
| PEN | Federal Executive Branch |
| PEPE II | Pampa Energía II Wind Farm |
| PEPE III | Pampa Energía III Wind Farm |
| PEPE IV | Pampa Energía IV Wind Farm |
| PEPE VI | Pampa Energía VI Wind Farm |
| PESOSA | Pampa Energía Soluciones S.A. |
| PISA | Pampa Inversiones S.A. |
| POSA | Petrobras Operaciones S.A. |
| RDA | Rincón de Aranda |
| RIGI | Incentive Regime for Large Investments |
| 2 |
| |
GLOSSARY OF TERMS: (Continuation)
| Terms | Definitions |
| SACDE | Sociedad Argentina de Construcción y Desarrollo Estratégico S.A. |
| SE | Secretary of Energy |
| SESA | Southern Energy S.A. |
| TGS | Transportadora de Gas del Sur S.A. |
| TJSM | Termoeléctrica José de San Martín S.A. |
| TMB | Termoeléctrica Manuel Belgrano S.A. |
| The Company / Pampa | Pampa Energía S.A. |
| The Group | Pampa Energía S.A. and its subsidiaries |
| Tn/d | Tons per day |
| Tn/y | Tons per year |
| Transba | Empresa de Transporte de Energía Eléctrica por Distribución Troncal de la Provincia de Buenos Aires Transba S.A. |
| Transener | Compañía de Transporte de Energía Eléctrica en Alta Tensión Transener S.A. |
| US$ | U.S. dollar |
| VAR | Vientos de Arauco Renovables S.A.U. |
| VMOS | VMOS S.A. |
| WEM | Wholesale Electricity Market |
| $ | Argentine Pesos |
| 3 |
| |
UNAUDITED
CONSOLIDATED CONDENSED INTERIM STATEMENT OF
COMPREHENSIVE INCOME
For the three-month period ended March 31, 2026, presented on comparative basis.
(In millions of US$ – unless otherwise stated)
| Note | 03.31.2026 | 03.31.2025 | ||||
| Revenue | 8 | 573 | 414 | |||
| Cost of sales | 9 | (380) | (285) | |||
| Gross profit | 193 | 129 | ||||
| Selling expenses | 10.1 | (26) | (21) | |||
| Administrative expenses | 10.2 | (44) | (43) | |||
| Other operating income | 10.3 | 9 | 32 | |||
| Other operating expenses | 10.3 | (19) | (22) | |||
| Impairment of inventories | (1) | - | ||||
| Impairment of financial assets | (1) | - | ||||
| Share of profit from associates and joint ventures | 5.1.2 | 67 | 46 | |||
| Operating income | 178 | 121 | ||||
| Financial income | 10.4 | 4 | 33 | |||
| Financial costs | 10.4 | (39) | (41) | |||
| Other financial results | 10.4 | 7 | 37 | |||
| Financial results, net | (28) | 29 | ||||
| Profit before income tax | 150 | 150 | ||||
| Income tax | 10.5 | 66 | 4 | |||
| Profit of the period | 216 | 154 | ||||
| Other comprehensive income | ||||||
| Items that will not be reclassified to profit or loss | ||||||
| Exchange differences on translation | 74 | 17 | ||||
| Items that may be reclassified to profit or loss | ||||||
| Derivatives (1) | (231) | - | ||||
| Income tax | 81 | - | ||||
| Exchange differences on translation | 44 | 16 | ||||
| Other comprehensive (loss) income of the period | (32) | 33 | ||||
| Total comprehensive income of the period | 184 | 187 |
| (1) | See Note 12.7 |
| 4 |
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UNAUDITED CONSOLIDATED CONDENSED INTERIM
STATEMENT OF COMPREHENSIVE INCOME (Continuation)
For the three-month period ended March 31, 2026, presented on comparative basis.
(In millions of US$ – unless otherwise stated)
| Note | 03.31.2026 | 03.31.2025 | ||||
| Total profit of the period attributable to: | ||||||
| Owners of the company | 214 | 153 | ||||
| Non-controlling interest | 2 | 1 | ||||
| 216 | 154 | |||||
| Total comprehensive income of the period attributable to: | ||||||
| Owners of the Company | 182 | 186 | ||||
| Non-controlling interest | 2 | 1 | ||||
| 184 | 187 | |||||
| Earnings per share attributable to equity holders of the Company | ||||||
| Total basic and diluted earning per share | 13.2 | 0.16 | 0.11 |
The accompanying notes are an integral part of these Unaudited Consolidated Condensed Interim Financial Statements.
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UNAUDITED
CONSOLIDATED CONDENSED INTERIM STATEMENT
OF FINANCIAL POSITION
As of March 31, 2026, presented on comparative basis.
(In millions of US$ – unless otherwise stated)
| Note | 03.31.2026 | 12.31.2025 | ||||
| ASSETS | ||||||
| NON-CURRENT ASSETS | ||||||
| Property, plant and equipment | 11.1 | 3,384 | 3,303 | |||
| Intangible assets | 11.2 | 88 | 89 | |||
| Right-of-use assets | 30 | 36 | ||||
| Deferred tax asset | 11.3 | 293 | 43 | |||
| Investments in associates and joint ventures | 5.1.2 | 1,261 | 1,059 | |||
| Financial assets at fair value through profit and loss | 12.1 | 33 | 33 | |||
| Trade and other receivables | 12.2 | 66 | 43 | |||
| Total non-current assets | 5,155 | 4,606 | ||||
| CURRENT ASSETS | ||||||
| Inventories | 11.4 | 238 | 231 | |||
| Financial assets at fair value through profit and loss | 12.1 | 441 | 366 | |||
| Derivatives | - | 52 | ||||
| Trade and other receivables | 12.2 | 947 | 614 | |||
| Cash and cash equivalents | 12.3 | 236 | 725 | |||
| Total current assets | 1,862 | 1,988 | ||||
| Total assets | 7,017 | 6,594 |
| 6 |
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UNAUDITED CONSOLIDATED CONDENSED INTERIM STATEMENT
OF FINANCIAL POSITION (Continuation)
As of March 31, 2026, presented on comparative basis.
(In millions of US$ – unless otherwise stated)
| Note | 03.31.2026 | 12.31.2025 | ||||
| SHAREHOLDERS´ EQUITY | ||||||
| Share capital | 36 | 36 | ||||
| Share capital adjustment | 191 | 191 | ||||
| Share premium | 517 | 516 | ||||
| Treasury shares adjustment | 1 | 1 | ||||
| Treasury shares cost | (54) | (54) | ||||
| Legal reserve | 44 | 44 | ||||
| Voluntary reserve | 2,399 | 2,399 | ||||
| Other reserves | (13) | (12) | ||||
| Other comprehensive income | 18 | 124 | ||||
| Retained earnings | 639 | 351 | ||||
| Equity attributable to owners of the company | 3,778 | 3,596 | ||||
| Non-controlling interest | 11 | 9 | ||||
| Total equity | 3,789 | 3,605 | ||||
| LIABILITIES | ||||||
| NON-CURRENT LIABILITIES | ||||||
| Provisions | 11.5 | 73 | 100 | |||
| Income tax and minimum notional income tax provision | 11.6 | 26 | 26 | |||
| Deferred tax liability | 11.3 | 46 | 56 | |||
| Tax liabilities | 11.7 | 220 | 212 | |||
| Defined benefit plans | 29 | 26 | ||||
| Borrowings | 12.4 | 1,841 | 1,844 | |||
| Trade and other payables | 12.5 | 81 | 86 | |||
| Total non-current liabilities | 2,316 | 2,350 | ||||
| CURRENT LIABILITIES | ||||||
| Provisions | 11.5 | 14 | 13 | |||
| Income tax liability | 11.6 | 197 | 83 | |||
| Tax liabilities | 11.7 | 69 | 56 | |||
| Defined benefit plans | 7 | 6 | ||||
| Salaries and social security payable | 24 | 36 | ||||
| Derivatives | 181 | - | ||||
| Borrowings | 12.4 | 39 | 48 | |||
| Trade and other payables | 12.5 | 381 | 397 | |||
| Total current liabilities | 912 | 639 | ||||
| Total liabilities | 3,228 | 2,989 | ||||
| Total liabilities and equity | 7,017 | 6,594 |
The accompanying notes are an integral part of these Unaudited Consolidated Condensed Interim Financial Statements.
| 7 |
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UNAUDITED
CONSOLIDATED CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY
For the three-month period ended March 31, 2026, presented on comparative basis.
(In millions of US$ – unless otherwise stated)
| Equity holders of the company | Retained earnings | ||||||||||||||||||||||||
| Share capital | Share capital adjustment | Share premium | Treasury shares adjustment | Treasury shares cost | Legal reserve | Voluntary reserve | Other reserves | Other comprehensive income (loss) | Unappropiated retained earnings | Equity attributable to owners | Non-controlling interest | Total equity | |||||||||||||
| Balance as of December 31, 2024 | 36 | 191 | 516 | 1 | (7) | 44 | 1,657 | (13) | 119 | 742 | 3,286 | 9 | 3,295 | ||||||||||||
| Profit for the three-month period | - | - | - | - | - | - | - | - | - | 153 | 153 | 1 | 154 | ||||||||||||
| Other comprehensive income for the three-month period | - | - | - | - | - | - | - | - | 16 | 17 | 33 | - | 33 | ||||||||||||
| Balance as of March 31, 2025 | 36 | 191 | 516 | 1 | (7) | 44 | 1,657 | (13) | 135 | 912 | 3,472 | 10 | 3,482 | ||||||||||||
| Voluntary reserve constitution | - | - | - | - | - | - | 742 | - | - | (742) | - | - | - | ||||||||||||
| Treasury shares acquisition | - | - | - | - | (47) | - | - | - | - | - | (47) | - | (47) | ||||||||||||
| Dividens ditribution | - | - | - | - | - | - | - | - | - | - | - | (1) | (1) | ||||||||||||
| Stock compensation plans | - | - | - | - | - | - | - | 1 | - | - | 1 | - | 1 | ||||||||||||
| Profit for the complementary nine-month period | - | - | - | - | - | - | - | - | - | 224 | 224 | - | 224 | ||||||||||||
| Other comprehensive loss for the complementary nine-month period | - | - | - | - | - | - | - | - | (11) | (43) | (54) | - | (54) | ||||||||||||
| Balance as of December 31, 2025 | 36 | 191 | 516 | 1 | (54) | 44 | 2,399 | (12) | 124 | 351 | 3,596 | 9 | 3,605 | ||||||||||||
| Stock compensation plans | - | - | 1 | - | - | - | - | (1) | - | - | - | - | - | ||||||||||||
| Profit for the three-month period | - | - | - | - | - | - | - | - | - | 214 | 214 | 2 | 216 | ||||||||||||
| Other comprehensive (loss) income for the three-month period | - | - | - | - | - | - | - | - | (106) | 74 | (32) | - | (32) | ||||||||||||
| Balance as of March 31, 2026 | 36 | 191 | 517 | 1 | (54) | 44 | 2,399 | (13) | 18 | 639 | 3,778 | 11 | 3,789 | ||||||||||||
The accompanying notes are an integral part of these Unaudited Consolidated Condensed Interim Financial Statements.
| 8 |
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UNAUDITED CONSOLIDATED CONDENSED INTERIM STATEMENT OF CASH FLOWS
For the three-month period ended March 31, 2026, presented on comparative basis.
(In millions of US$ – unless otherwise stated)
| Note | 03.31.2026 | 03.31.2025 | |||
| Cash flows from operating activities: | |||||
| Profit of the period | 216 | 154 | |||
| Adjustments to reconcile net profit to cash flows from operating activities | 14.1 | 34 | 3 | ||
| Changes in operating assets and liabilities | 14.2 | (483) | (67) | ||
| Net cash (used in) generated by operating activities | (233) | 90 | |||
| Cash flows from investing activities: | |||||
| Payment for property, plant and equipment acquisitions | (265) | (162) | |||
| Collection for sales of public securities and shares, net | 87 | 151 | |||
| Suscription of mutual funds, net | (9) | - | |||
| Capital integration in companies | (16) | (31) | |||
| Payment for right-of-use | - | (1) | |||
| Net cash used in investing activities | (203) | (43) | |||
| Cash flows from financing activities: | |||||
| Proceeds from borrowings | 12.4 | - | 45 | ||
| Payment of borrowings | 12.4 | (23) | (70) | ||
| Payment of borrowings interests | 12.4 | (22) | (38) | ||
| Repurchase and redemption of corporate bonds | 12.4 | (2) | (360) | ||
| Payments of leases | (6) | (1) | |||
| Net cash used in financing activities | (53) | (424) | |||
| Decrease in cash and cash equivalents | (489) | (377) | |||
| Cash and cash equivalents at the beginning of the year | 12.3 | 725 | 738 | ||
| Decrease in cash and cash equivalents | (489) | (377) | |||
| Cash and cash equivalents at the end of the period | 12.3 | 236 | 361 |
The accompanying notes are an integral part of these Unaudited Consolidated Condensed Interim Financial Statements.
| 9 |
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS For the three-month period ended March 31, 2026, presented on comparative basis. (In millions of US$ – unless otherwise stated) |
NOTE 1: GENERAL INFORMATION
1.1
General information of the Company
The Company’s principal executive office is located in Maipú 1, Autonomous City of Buenos Aires in Argentina, which participates in the energy sector, mainly in the production of oil and gas and power generation.
In the oil and gas segment, the Company develops an important activity in gas and oil exploration and production, reaching a production level in the three-month period ended March 31, 2026 of 13.8 million m3/day of natural gas and 19.2 thousand boe/day of oil in 9 productive areas and 2 exploratory areas in Argentina. Its main production blocks are located in the Province of Neuquén. Additionally, the Company participates in SESA, an entity dedicated to natural gas liquefaction.
In the generation segment, the Company, directly and through its subsidiaries and joint ventures, has a 5,472 MW installed capacity as of March 31, 2026, which represents approximately 12% of Argentina’s installed capacity, and being one of the largest independent generators in the country.
In the petrochemicals segment, the Company operates 2 high-complexity plants in Argentina producing styrene, synthetic rubber and polystyrene, with a share ranging between 83% and 100%, in the domestic market.
Finally, through the holding, transportation and others segment, the Company participates in the electricity transmission and gas transportation businesses. In the transmission business, the Company jointly controls Citelec, which has a controlling interest in Transener, a company engaged in the operation and maintenance of a 22,446 km high-voltage electricity transmission network in Argentina with an 86% market share of Argentina’s high-voltage transmission lines. In the gas transportation business, the Company jointly controls CIESA, which has a controlling interest in TGS, a company holding a concession for the transportation of natural gas with 9,248 km of gas pipelines in the center, west and south of Argentina, and which is also engaged in the processing and sale of natural gas liquids through the Cerri Complex, located in Bahía Blanca, in the Province of Buenos Aires, in addition to shale gas transportation and conditioning at Vaca Muerta. Additionally, the Company participates in VMOS, an entity that will operate an oil pipeline connecting Vaca Muerta with an offshore export port. Finally, the segment includes advisory services provided to related companies.
1.2 Economic context in which the Company operates
The Company operates in an economic context which main variables are experiencing volatility as a result of political and economic events both in the domestic and international spheres.
During the first quarter of 2026, the Argentine economy continued to undergo an economic stabilization process and recorded a cumulative 9.4% inflation, with monthly levels of around 3%, considering the CPI.
| 10 |
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation) For the three-month period ended March 31, 2026, presented on comparative basis. (In millions of US$ – unless otherwise stated) |
NOTE 1: (Continuation)
At the international level, during the first quarter of 2026 geopolitical tensions in the Middle East intensified due to the military conflict in the region, affecting the international energy market. In particular, attacks on energy infrastructure and the disruption of maritime traffic through the Strait of Hormuz, a strategic corridor for oil trade, led to restrictions on crude oil production and exports, and increased logistics costs which in turn drove the rebound in Brent crude oil prices in the international market.
During the first quarter of 2026, Brent crude oil prices recorded a significant increase, rising from levels close to US$ 60/bbl in early 2026 to values above US$ 100/bbl by the end of March 2026.
In this context, during the first quarter of 2026 international organizations revised their estimates for the global economy, adjusting inflation forecasts upward and moderating global growth prospects for the current fiscal year.
The context of volatility and uncertainty continues as of the date of issuance of these Consolidated Condensed Interim Financial Statements and it is not possible to foresee the macroeconomic and financial situation of Argentina or the international context’ evolution or what new measures might be announced.
The Company’s Management permanently monitors the evolution of the variables affecting its business to define its course of action and identify potential impacts on its assets and financial position.
The Company’s Consolidated Condensed Interim Financial Statements should be read in light of these circumstances.
NOTE 2: REGULATORY FRAMEWORK
The main regulations applicable to the Company’s activities, identified during 2026, are detailed below. It is worth highlighting that this is not an exhaustive list of all regulations the Company is subject to.
| 2.1 | Oil and Gas |
2.1.1 Assignment of gas contracts with ENARSA
SE Resolution No. 54/26 extended by 180 calendar days the deadline for producers, opting into the assignment of ENARSA contracts to distributors and CAMMESA, to submit the corresponding notice to the SE. Distributors are required to opt in within the same term. In turn, ENARGAS will oversee the assignment and volume allocation process through a procedure to be determined jointly with ENARSA.
2.1.2 Compensation for Natural Gas consumption subsidies
ENARGAS Resolution No. 101/26 repealed ENARGAS Resolution No. 125/25 and approved a new reporting procedure related to the Focused Energy Subsidies (SEF) regime created by Executive Order No. 943/25 under the unification of national energy subsidies and the elimination of income-level segmentation, to be replaced by a user allocation scheme distinguishing between subsidized and non-subsidized users.
| 11 |
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation) For the three-month period ended March 31, 2026, presented on comparative basis. (In millions of US$ – unless otherwise stated) |
NOTE 2: (Continuation)
However, ENARGAS Resolution No. 101/26 preserves the criterion whereby subsidy compensations are received by natural gas producers and applied as a deduction in billings to distributors.
Within the framework of the new SEF regime, PEN Executive Order No. 26/26 provides that the price awarded to each producer participating in the Gas.Ar Plan may be above, below or in line with the Uniform Annual Price (“PAU”), depending on the time of year and taking into account the applicable seasonal adjustment factor.
In the months in which the PAU is higher than the Gas.Ar Plan price, the difference will be recorded as a credit balance, which will be applied to offset the months in which the opposite situation occurs. This mechanism will under no circumstances affect the price receivable by producers under the Gas.Ar Plan. Along the same line, SE Resolution No. 23/26 establishes the PAU to be passed on to end users under the natural gas supply agreements entered into under the Gas.Ar Plan.
| 2.2 | Generation |
| 2.2.1 | MAT Regime |
On March 27, 2026, SE Resolution No. 78/26 amended SE Resolution No. 400/25 and, effective April 1, 2026, permanently established the monthly filing regime for energy and capacity contracts within the WEM with a minimum of 5 days’ advance notice.
2.2.2 Energy Plus Contracts
As of March 31, 2026, the Company no longer markets capacity and energy under Energy Plus contracts.
2.2.3 Remuneration for assigned generation
SE Resolution No. 34/26 updated the remuneration values for assigned generation, establishing 2% increases applicable to the economic transactions for January 2026. The maximum WEM spot price for January 2026 amounted to $14,669/MWh.
| 2.3 | Gas Transportation |
| 2.3.1 | TGS’s Tariff situation |
As part of the monthly updates to natural gas transportation tariffs, in 2026 TGS received monthly increases of 2.03%, 2.63%, 2.27%, and 1.94%, effective January through April 2026, respectively.
| 12 |
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation) For the three-month period ended March 31, 2026, presented on comparative basis. (In millions of US$ – unless otherwise stated) |
NOTE 2: (Continuation)
| 2.3.2 | Contractual reorganization |
Under Executive Order No. 49/26, the Federal Government extended the emergency in the National Energy Sector for the natural gas transportation and distribution segments until December 31, 2027.
Within that framework, SE Resolution No. 66/26 provided for the reconfiguration of the Republic of Argentina’s natural gas transportation system aiming to optimize use, ensure adequate supply and improve the system’s operational efficiency. It also instructed ENARGAS to adjust tariff schemes, service regulations and capacity allocation mechanisms under its regulatory authority, while preserving the revenue determined in the FTR as an essential condition.
On April 14, 2026, ENARGAS Resolution No. 409/26 instructed licensees to enter into new firm transportation contracts, effective May 2026, in line with the guidelines set forth in SE Resolution No. 66/26. It also recognized the firm nature of certain exchange and displacement contracts specified in the resolution.
On April 29, 2026, through ENARGAS Resolution No. 448/26, the tariff schedules incorporating the reorganization were published. The application of such resolution did not have a significant impact on TGS’s financial position or results of operations.
| 2.4 | Transmission |
Transener and Transba tariff situation
Within the framework of the FTR carried out in 2025, ENRE continued applying the monthly tariff adjustment mechanism based on the CPI and IPIM indexes and established 1.88%, 2.55%, 2.07%, 1.61% and 2.35% tariff increases from January through May 2026, respectively.
| 2.5 | Tax regulations |
2.5.1 Income tax
Tax inflation adjustment
Law No. 27,802, published in the BO on March 6, 2026, establishes the adjustment of tax losses carryforwards generated in fiscal years beginning on or after January 1, 2025, inclusive, considering the variation in the CPI between the closing month of the fiscal year in which they arise and the closing month of the fiscal year being assessed.
| 13 |
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation) For the three-month period ended March 31, 2026, presented on comparative basis. (In millions of US$ – unless otherwise stated) |
NOTE 2: (Continuation)
2.5.2 Other Regimes
2.5.2.1 Hydrocarbon Export Duties Regime
Pursuant to PEN Executive Order No. 488/20, oil, natural gas and liquefied gas exports are exempt from export duties provided that the Brent crude oil price published by the SE at the end of each month is equal to or lower than US$ 45/bbl. Under this regime, the export duty rate is subject to a gradual increase of up to 8% as the reference price increases, reaching 8% when the price is equal to or higher than US$ 60/bbl.
PEN Executive Order No. 59/26 updated the export duties regime applicable to crude oil and introduced a distinction between conventional and unconventional crude oil production. Under the updated regime, conventional crude oil exports are exempt from export duties when the international Brent crude oil price is equal to or lower than US$ 65/bbl, and are subject to a rate increasing gradually up to 8% according to a formula based on the increase in the reference price, reaching 8% when the price is equal to or higher than US$ 80/bbl. The Executive Order entered into effect on February 20, 2026, pursuant to SE Resolution No. 42/26.
As of March 31, 2026, crude oil and natural gas exports are subject to an 8% export duty rate.
2.5.2.2 RIGI amendment
Pursuant to Executive Order No. 105/26, dated February 19, 2026, the deadline to apply for the RIGI was extended until July 8, 2027. In addition, the decree expanded the list of eligible projects to include, among others: (i) the construction of infrastructure for the collection, treatment, processing, fractionation, and liquefaction of natural gas, as well as the transportation of natural gas intended for the export of liquefied natural gas; (ii) the exploration and production of new onshore liquid and gaseous hydrocarbon developments located in areas that, at the time of submitting the application for adhesion, do not have existing investments in exploration or production activities; and (iii) the exploration and production of new offshore liquid and gaseous hydrocarbon developments. Additionally, it set a minimum investment threshold of US$ 600 million for onshore developments and US$ 200 million for offshore developments.
Where activities not covered by the RIGI coexist within the same hydrocarbon area, segregation and traceability must be ensured through independent measurement systems and the Single Project Vehicle (“SPV”) must be the exclusive owner of the assets, rights, and operations associated with the RIGI-eligible project.
NOTE 3: BASIS OF PREPARATION
These Consolidated Condensed Interim Financial Statements for the three-month period ended March 31, 2026 have been prepared pursuant to the provisions of IAS 34, “Interim Financial Information” as issued by the IASB, are expressed in millions of US dollars and were approved for their issuance by the Company’s Board of Directors on May 6, 2026.
The information included in the Consolidated Condensed Interim Financial Statements is recorded and presented in US dollars, which is the Company’s functional currency.
| 14 |
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation) For the three-month period ended March 31, 2026, presented on comparative basis. (In millions of US$ – unless otherwise stated) |
NOTE 3: (Continuation)
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 derivatives and they should be read together with the Consolidated Financial Statements as of December 31, 2025, which have been prepared under IFRS Accounting Standards as issued by the IASB.
These Consolidated Condensed Interim Financial Statements for the three-month period ended March 31, 2026 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, 2026, 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, 2025 and for the three-month period ended March 31, 2025, disclosed for comparative purposes, arises from the Consolidated Financial Statements as of those dates.
Additionally, certain non-significant reclassifications have been made to the Consolidated Financial Statements´ figures disclosed for comparative purposes to keep the consistency in the presentation with the current period figures.
NOTE 4: ACCOUNTING POLICIES
The accounting policies applied in these Consolidated Condensed Interim Financial Statements are consistent with those used in the Consolidated Financial Statements for the last fiscal year, which ended on December 31, 2025.
4.1 New accounting standards, amendments and interpretations issued by the IASB effective as of December 31, 2026 and adopted by the Company
The Company has applied the following standards and / or amendments for the first time as of January 1, 2026:
| - | IFRS 9 and IFRS 7 - “Financial Instruments and Disclosures” (amended in May 2024 and December 2024). |
| - | IMPROVEMENTS TO IFRS – Volume 11 (July 2024) |
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.
| 15 |
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation) For the three-month period ended March 31, 2026, presented on comparative basis. (In millions of US$ – unless otherwise stated) |
NOTE 4: (Continuation)
4.2 New accounting standards, amendments and interpretations issued by the IASB not yet effective and not early adopted by the Company
Pursuant to CNV General Resolution No. 972/23, early application of IFRS accounting standards and/or amendments thereto is not permitted unless specifically permitted at the time of adoption.
As of March 31, 2026, the Company has not early applied the following standards and/or amendments:
| - | IFRS 18 - “Presentation and Disclosure in Financial Statements”: issued in April 2024. It establishes new presentation and disclosure requirements aiming to ensure that financial statements provide relevant information faithfully representing an entity’s situation. The standard does not affect the recognition or measurement of financial statement items; however, it introduces new requirements for improved comparability among entities. Specifically, the following are worth mentioning: (i) the classification of income and expenses into operating, investing and financing categories; (ii) the incorporation of required subtotals; and (iii) the disclosure of performance measures defined by management. The standard is applicable retrospectively to fiscal years and interim periods beginning on or after January 1, 2027, allowing for early adoption. The Company is currently analyzing the disclosure impact on the financial statements in relation to the application of the standard. |
| - | IFRS 19 - “Subsidiaries without Public Accountability: Disclosures”: issued in May 2024. It allows for reduced disclosures for entities without public accountability that are subsidiaries of an entity preparing consolidated financial statements available for public use and in compliance with IFRS accounting standards. Subsequently, in August 2025, amendments were introduced reducing disclosure requirements related to supplier financing arrangements, lack of exchangeability of currency and international tax reform, and replacing disclosure requirements regarding management-defined performance measures with a cross-reference to IFRS 18 for entities using such measures. The standard and its amendments are effective for fiscal periods beginning on or after January 1, 2027, with early adoption permitted. The application of this standard will not impact the Company’s operating results or financial position. |
| - | IAS 21 - “Effects of Changes in Foreign Exchange Rates”: In November 2025, IAS 21 was amended regarding the translation of financial statements for presentation in a currency different from the functional currency, and certain disclosure requirements were introduced. In particular, for the translation from a non-hyperinflationary functional currency to a hyperinflationary presentation currency, it establishes that all amounts (assets, liabilities, equity items, income and expenses, including comparative information) are translated at the closing exchange rate. The amendments are retrospectively applicable for annual periods beginning on or after January 1, 2027, with early adoption permitted. The application of this amendments will not impact the Company’s information. |
| 16 |
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation) For the three-month period ended March 31, 2026, presented on comparative basis. (In millions of US$ – unless otherwise stated) |
NOTE 5: GROUP STRUCTURE
| 5.1 | Interest in subsidiaries, associates and joint ventures |
| 5.1.1 | Subsidiaries information |
Unless otherwise indicated, the country is also the principal place where the subsidiary carries out its activities.
| 03.31.2026 | 12.31.2025 | |||||||
| Company | Country | Main activity | Direct and indirect participation % | Direct and indirect participation % | ||||
| Recursos Energéticos S.A.U. | Argentina | Generation | 100.00% | 100.00% | ||||
| EISA | Uruguay | Investment | 100.00% | 100.00% | ||||
| Enecor S.A. | Argentina | Electricity transportation | 70.00% | 70.00% | ||||
| FEPASAU | Argentina | Fertilizers | 100.00% | 100.00% | ||||
| Fideicomiso CIESA | Argentina | Investment | 100.00% | 100.00% | ||||
| GASA | Argentina | Investment | 100.00% | 100.00% | ||||
| HIDISA | Argentina | Generation | 61.00% | 61.00% | ||||
| HINISA | Argentina | Generation | 52.04% | 52.04% | ||||
| OCP | Gran Cayman | Investment | 100.00% | 100.00% | ||||
| OPGSA | Argentina | Oil | 100.00% | 100.00% | ||||
| PAMPA E&P S.A.U. | Argentina | Oil | 100.00% | 100.00% | ||||
| PB18 | Ecuador | Oil | 100.00% | 100.00% | ||||
| PEB | Bolivia | Investment | 100.00% | 100.00% | ||||
| PECSA | Chile | Trader | 100.00% | 100.00% | ||||
| PESOSA | Argentina | Trader | 100.00% | 100.00% | ||||
| Petrolera San Carlos S.A. | Venezuela | Oil | 100.00% | 100.00% | ||||
| PISA | Uruguay | Investment | 100.00% | 100.00% | ||||
| VAR | Argentina | Generation | 100.00% | 100.00% | ||||
| Vientos Solutions Argentina S.A.U. | Argentina | Advisory services | 100.00% | 100.00% |
| 17 |
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation) For the three-month period ended March 31, 2026, presented on comparative basis. (In millions of US$ – unless otherwise stated) |
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 | ||||||||||||
| SESA | Gas treatment | 03.31.2026 | 1.00 | 1 | 96 | 20.00% | ||||||
| VMOS | Hydrocarbon transportation | 03.31.2026 | 115.00 | 8 | 382 | 10.20% | ||||||
| Joint ventures | ||||||||||||
| CIESA (1) | Investment | 03.31.2026 | 0.46 | 63 | 1,399 | 50.00% | ||||||
| Citelec (2) | Investment | 03.31.2026 | 0.40 | 24 | 384 | 50.00% | ||||||
| CTB | Generation | 03.31.2026 | 6.00 | 42 | 526 | 50.00% | ||||||
(1) The Company holds a 50% interest in CIESA, a company that holds a 53.83% interest in TGS’s capital stock; therefore, the Company has a 26.91% interest in TGS.
As of March 31, 2026, TGS’s common shares and ADR traded on the BCBA and NYSE were listed at $ 10,150.00 and US$ 34.61, respectively, conferring Pampa’s holding an approximate market value of US$ 1,402 million ($ 2,056,352 million).
(2) The Company has a 50% interest in Citelec, a company that holds a 52.65% interest in Transener’s capital stock; therefore, the Company has a 26.33% indirect interest in Transener. As of March 31, 2026, Transener’s common share price listed at the BCBA was $ 4,190.00, conferring Pampa’s indirect holding an approximate market value of US$ 354.91 million ($ 490,483 million).
| 18 |
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation) For the three-month period ended March 31, 2026, presented on comparative basis. (In millions of US$ – unless otherwise stated) |
NOTE 5: (Continuation)
The detail of the balances of investments in associates and joint ventures is as follows:
| 03.31.2026 | 12.31.2025 | |||
| Disclosed in non-current assets | ||||
| Associates | ||||
| VMOS | 44 | 31 | ||
| SESA | 19 | 12 | ||
| Total associates | 63 | 43 | ||
| Joint ventures | ||||
| CIESA | 743 | 618 | ||
| Citelec | 192 | 156 | ||
| CTB | 263 | 242 | ||
| Total joint ventures | 1,198 | 1,016 | ||
| Total associates and joint ventures | 1,261 | 1,059 |
The following table shows the breakdown of the result from investments in associates and joint ventures:
| 03.31.2026 | 03.31.2025 | |||
| Associates | ||||
| SESA | 3 | - | ||
| VMOS | 1 | - | ||
| Total associates | 4 | - | ||
| Joint ventures | ||||
| CIESA | 30 | 25 | ||
| Citelec | 12 | 8 | ||
| CTB | 21 | 13 | ||
| Total joint ventures | 63 | 46 | ||
| Total associates and joint ventures | 67 | 46 |
| 19 |
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation) For the three-month period ended March 31, 2026, presented on comparative basis. (In millions of US$ – unless otherwise stated) |
NOTE 5: (Continuation)
The evolution of investments in associates and joint ventures is as follows:
| 03.31.2026 | 03.31.2025 | |||
| At the beginning of the year | 1,059 | 993 | ||
| Capital contribution | 16 | 31 | ||
| Share of profit | 67 | 46 | ||
| Exchange differences on translation | 119 | 33 | ||
| At the end of the period | 1,261 | 1,103 |
| 5.1.3 | CIESA - TGS |
Perito Moreno Gas Pipeline (GPM) Expansion
In March 2026, TGS conducted a public call for tenders to award incremental transport capacity associated with the expansion of the GPM. TGS received capacity demand requests for more than 32 million m³/day. On April 15, 2026, 5.4 million m³/day were awarded. The remaining capacity will be offered and awarded by TGS in the upcoming months.
The Company and certain subsidiaries participated in TGS’s call and were awarded a total volume of 3.2 million m³/day over a 35-year term.
Weather event
During the period ended March 31, 2026, TGS recorded $3,384 million losses arising from expenses related to the weather event of March 7, 2025, which resulted in the flooding of the Cerri Complex, and received $ 11,865 million from insurance companies as an advance payment on account of the total settlement of the claim.
| 5.1.4 | SESA |
San Matías Pipeline Project
In addition to the gas liquefaction project to be developed by SESA, which includes the installation of two liquefaction vessels in the Gulf of San Matías, San Matías Pipeline S.A. (“SMP”) will be responsible for the construction and operation of a dedicated pipeline connecting gas production from Vaca Muerta, in Neuquén, to the Gulf of San Matías, in Río Negro, to supply the liquefaction vessels intended for LNG exports. The project involves the construction of a 36-inch diameter pipeline of approximately 470 km in length with a transportation capacity of up to 28 million m³/day. The Company will hold a 20% participation in the project.
| 20 |
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation) For the three-month period ended March 31, 2026, presented on comparative basis. (In millions of US$ – unless otherwise stated) |
NOTE 5: (Continuation)
| 5.2 | Oil and gas participations |
Assets and liabilities as of March 31, 2026 and December 31, 2025 and the production cost of the Joint Operations and Consortiums in which the Company participates corresponding to the three-month periods ended March 31, 2026 and 2025 are detailed below:
| 03.31.2026 | 12.31.2025 | |||
| Non-current assets | 135 | 122 | ||
| Current assets | 8 | 9 | ||
| Total assets | 143 | 131 | ||
| Non-current Liabilities | 44 | 40 | ||
| Current Liabilities | 17 | 21 | ||
| Total liabilities | 61 | 61 | ||
| 03.31.2026 | 03.31.2025 | |||
| Production cost | 14 | 23 | ||
It is worth highlighting that the information presented does not include charges recorded by the Company as a member of the Joint Operations and Consortiums.
NOTE 6: RISKS
6.1 Critical accounting estimates and judgments
The preparation of these Consolidated Condensed Interim Financial Statements requires the Company’s Management to make future estimates and assessments, to apply critical judgment and to establish assumptions affecting the application of accounting policies and the amounts of disclosed assets and liabilities, and income and expenses.
Those estimates and judgments are evaluated on a continuous basis and are based on past experiences and other reasonable factors under the existing circumstances. Actual future results might differ from the estimates and evaluations made at the date of preparation of these Consolidated Condensed Interim Financial Statements.
In the preparation of these Consolidated Condensed Interim Financial Statements, management judgements on applying the Company’s accounting policies and sources of information used for the respective estimates are the same as those applied in the Consolidated Financial Statements for the fiscal year ended December 31, 2025.
| 21 |
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation) For the three-month period ended March 31, 2026, presented on comparative basis. (In millions of US$ – unless otherwise stated) |
NOTE 6: (Continuation)
6.2 Financial risk management
The Company’s activities are subject to several financial risks: market risk (including the exchange rate risk, the interest rate risk and price risk), credit risk and liquidity risk.
No significant changes have arisen in risk management policies since last fiscal year.
NOTE 7: SEGMENT INFORMATION
The Company is a fully integrated power company in Argentina, which participates mainly in the production of oil and gas and power generation.
Through its own activities, subsidiaries and shareholdings in joint ventures and associates, and based on the business nature, customer portfolio and risks involved, the following business segments have been identified:
Oil and Gas, principally consisting of the Company’s interests in oil and gas areas, the activities of Pampa Energía S.A. - Sucursal Dedicada Proyecto RDA and direct and indirect interest in SESA and PECSA.
Generation, principally consisting of the Company’s direct and indirect interests in HINISA, HIDISA, VAR, CTB, TMB, TJSM and through its own electricity generation activities through thermal plants CTG, CPB, Piquirenda, CTLL, CTGEBA, Ecoenergía, CTPP, CTIW, the HPPL hydroelectric complex and PEPE II, PEPE III, PEPE IV and PEPE VI wind farms.
Petrochemicals, principally comprising of the Company’s own styrenics operations and the catalytic reformer plant operations conducted in local plants.
Holding, Transportation and Others, principally consisting of our stake in joint businesses CITELEC, CIESA and their respective subsidiaries holding the concession over high-voltage electricity transmission and gas transportation, respectively, the direct and indirect interests in VMOS, Oldelval and OCP, holding activities, and other investment activities.
The Company manages its operating segment based on its individual net result in U.S. dollars.
| 22 |
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation) For the three-month period ended March 31, 2026, presented on comparative basis. (In millions of US$ – unless otherwise stated) |
NOTE 7: (Continuation)
| in million of US$ | ||||||||||||
| Consolidated profit and loss information for the three-month period ended March 31, 2026 | Oil and gas | Generation | Petrochemicals | Holding, Transportation and others | Eliminations | Consolidated | ||||||
| Revenue - local market | 111 | 279 | 53 | 8 | - | 451 | ||||||
| Revenue - foreign market | 87 | - | 35 | - | - | 122 | ||||||
| Intersegment revenue | 49 | - | - | - | (49) | - | ||||||
| Cost of sales | (178) | (170) | (81) | - | 49 | (380) | ||||||
| Gross profit | 69 | 109 | 7 | 8 | - | 193 | ||||||
| Selling expenses | (22) | (1) | (3) | - | - | (26) | ||||||
| Administrative expenses | (21) | (11) | (2) | (10) | - | (44) | ||||||
| Other operating income | 2 | 4 | - | 3 | - | 9 | ||||||
| Other operating expenses | (3) | (5) | (5) | (6) | - | (19) | ||||||
| Impairment of inventories | (1) | - | - | - | - | (1) | ||||||
| Impairment of financial assets | (1) | - | - | - | - | (1) | ||||||
| Share of profit from associates and joint ventures | 3 | 21 | - | 43 | - | 67 | ||||||
| Operating income (loss) | 26 | 117 | (3) | 38 | - | 178 | ||||||
| Financial income | - | 4 | - | - | - | 4 | ||||||
| Financial costs | (25) | (9) | - | (5) | - | (39) | ||||||
| Other financial results | 10 | 20 | (9) | (14) | - | 7 | ||||||
| Financial results, net | (15) | 15 | (9) | (19) | - | (28) | ||||||
| Profit (Loss) before income tax | 11 | 132 | (12) | 19 | - | 150 | ||||||
| Income tax | 94 | (42) | 4 | 10 | - | 66 | ||||||
| Profit (Loss) of the period | 105 | 90 | (8) | 29 | - | 216 | ||||||
| Depreciation and amortization | 87 | 35 | - | - | - | 122 | ||||||
| 23 |
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation) For the three-month period ended March 31, 2026, presented on comparative basis. (In millions of US$ – unless otherwise stated) |
NOTE 7: (Continuation)
| in million of US$ | ||||||||||||
| Consolidated profit and loss information for the three-month period ended March 31, 2026 | Oil and gas | Generation | Petrochemicals | Holding, Transportation and others | Eliminations | Consolidated | ||||||
| Total profit (loss) of the period attributable to: | ||||||||||||
| Owners of the company | 105 | 88 | (8) | 29 | - | 214 | ||||||
| Non-controlling interest | - | 2 | - | - | - | 2 | ||||||
| Consolidated financial position information as of March 31, 2026 | ||||||||||||
| Assets | 2,977 | 2,691 | 139 | 1,275 | (65) | 7,017 | ||||||
| Liabilities | 2,184 | 581 | 59 | 469 | (65) | 3,228 | ||||||
| Net book values of property, plant and equipment (1) | 2,013 | 1,336 | - | 35 | - | 3,384 | ||||||
| Additional consolidated information as of March 31, 2026 | ||||||||||||
| Increases in property, plant and equipment | 196 | 2 | - | 1 | - | 199 | ||||||
| (1) | Assets located in Argentina |
| 24 |
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation) For the three-month period ended March 31, 2026, presented on comparative basis. (In millions of US$ – unless otherwise stated) |
NOTE 7: (Continuation)
| in million of US$ | ||||||||||||
| Consolidated profit and loss information for the three-month period ended March 31, 2025 | Oil and gas | Generation | Petrochemicals | Holding, Transportation and others | Eliminations | Consolidated | ||||||
| Revenue - local market | 94 | 194 | 57 | 7 | - | 352 | ||||||
| Revenue - foreign market | 26 | 1 | 35 | - | - | 62 | ||||||
| Intersegment revenue | 26 | - | - | - | (26) | - | ||||||
| Cost of sales | (118) | (103) | (90) | - | 26 | (285) | ||||||
| Gross profit | 28 | 92 | 2 | 7 | - | 129 | ||||||
| Selling expenses | (17) | (1) | (3) | - | - | (21) | ||||||
| Administrative expenses | (21) | (11) | (2) | (9) | - | (43) | ||||||
| Other operating income | 4 | 6 | 19 | 3 | - | 32 | ||||||
| Other operating expenses | (3) | (1) | (4) | (14) | - | (22) | ||||||
| Share of profit from associates and joint ventures | - | 13 | - | 33 | - | 46 | ||||||
| Operating income | (9) | 98 | 12 | 20 | - | 121 | ||||||
| Financial income | - | 6 | 27 | - | - | 33 | ||||||
| Financial costs | (25) | (12) | - | (4) | - | (41) | ||||||
| Other financial results | (4) | 31 | (1) | 11 | - | 37 | ||||||
| Financial results, net | (29) | 25 | 26 | 7 | - | 29 | ||||||
| Profit (Loss) before income tax | (38) | 123 | 38 | 27 | - | 150 | ||||||
| Income tax | (11) | 2 | 4 | 9 | - | 4 | ||||||
| Profit (Loss) of the period | (49) | 125 | 42 | 36 | - | 154 | ||||||
| Depreciation and amortization | 52 | 31 | 1 | - | - | 84 | ||||||
| 25 |
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation) For the three-month period ended March 31, 2026, presented on comparative basis. (In millions of US$ – unless otherwise stated) |
NOTE 7: (Continuation)
| in million of US$ | ||||||||||||
| Consolidated profit and loss information for the three-month period ended March 31, 2025 | Oil and gas | Generation | Petrochemicals | Holding, Transportation and others | Eliminations | Consolidated | ||||||
| Total profit (loss) of the period attributable to: | ||||||||||||
| Owners of the company | (49) | 124 | 42 | 36 | - | 153 | ||||||
| Non-controlling interest | - | 1 | - | - | - | 1 | ||||||
| Consolidated financial position information as of December 31, 2025 | ||||||||||||
| Assets | 2,513 | 3,046 | 147 | 931 | (43) | 6,594 | ||||||
| Liabilities | 1,737 | 668 | 73 | 554 | (43) | 2,989 | ||||||
| Net book values of property, plant and equipment (1) | 1,896 | 1,370 | - | 37 | - | 3,303 | ||||||
| Additional consolidated information as of March 31, 2025 | ||||||||||||
| Increases in property, plant and equipment and intangible assets | 147 | 9 | 3 | 3 | - | 162 | ||||||
(1) Assets located in Argentina
| 26 |
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation) For the three-month period ended March 31, 2026, presented on comparative basis. (In millions of US$ – unless otherwise stated) |
NOTE 8: REVENUE
| 03.31.2026 | 03.31.2025 | |||
| Gas sales | 88 | 94 | ||
| Oil sales | 107 | 22 | ||
| Other sales | 3 | 4 | ||
| Oil and gas sales subtotal (1) | 198 | 120 | ||
| Energy sales in Spot Market | 163 | 76 | ||
| Energy sales by supply contracts | 99 | 90 | ||
| Fuel supply | 16 | 27 | ||
| Other sales | 1 | 2 | ||
| Generation sales subtotal | 279 | 195 | ||
| Products from catalytic reforming sales | 40 | 43 | ||
| Styrene sales | 13 | 13 | ||
| Synthetic rubber sales | 17 | 20 | ||
| Polystyrene sales | 18 | 16 | ||
| Petrochemicals sales subtotal | 88 | 92 | ||
| Technical assistance and administration services sales | 8 | 7 | ||
| Holding, Transportation and others subtotal | 8 | 7 | ||
| Total revenue (2) (3) | 573 | 414 |
| (1) | See Note 12.7. |
| (2) | Revenues from CAMMESA represent 41% and 44% of total revenues from sales for the three-month periods ended March 31, 2026 and 2025, respectively, and correspond mainly to the Oil and gas and Generation segments. |
| (3) | Including US$ 7.9 million and US$ 1.9 million in the Oil and gas segment and US$ 1.5 million and US$ 2 million in the Petrochemical segment corresponding to export duties for the three-month periods ended March 31, 2026 and 2025, respectively. |
| 27 |
| |
NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation) For the three-month period ended March 31, 2026, presented on comparative basis. (In millions of US$ – unless otherwise stated) |
NOTE 9: COST OF SALES
| 03.31.2026 | 03.31.2025 | |||
| Inventories at the beginning of the year | 231 | 223 | ||
| Plus: Charges of the period | ||||
| Purchases of inventories, energy and gas | 117 | 98 | ||
| Salaries and social security charges | 21 | 23 | ||
| Employees benefits | 3 | 4 | ||
| Defined benefit plans | 1 | 1 | ||
| Works contracts, fees and compensation for services | 36 | 33 | ||
| Property, plant and equipment depreciation | 113 | 81 | ||
| Intangible assets amortization | 1 | 1 | ||
| Right-of-use assets amortization | 6 | - | ||
| Energy transportation | 2 | 3 | ||
| Transportation and freights | 13 | 11 | ||
| Consumption of materials | 6 | 8 | ||
| Penalties | 2 | 1 | ||
| Maintenance | 17 | 16 | ||
| Canons and royalties | 34 | 20 | ||
| Environmental control | 1 | 1 | ||
| Rental and insurance | 7 | 5 | ||
| Surveillance and security | 2 | 2 | ||
| Taxes, rates and contributions | 3 | 2 | ||
| Other | 2 | 2 | ||
| Total charges of the period | 387 | 312 | ||
| Less: Inventories at the end of the period | (238) | (250) | ||
| Total cost of sales | 380 | 285 | ||
| 28 |
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation) For the three-month period ended March 31, 2026, presented on comparative basis. (In millions of US$ – unless otherwise stated) |
NOTE 10: OTHER ITEMS OF THE STATEMENT OF COMPREHENSIVE INCOME
10.1 Selling expenses
| 03.31.2026 | 03.31.2025 | ||||
| Salaries and social security charges | 1 | 1 | |||
| Fees and compensation for services | 1 | - | |||
| Taxes, rates and contributions | 3 | 4 | |||
| Transportation and freights | 20 | 15 | |||
| Other | 1 | 1 | |||
| Total selling expenses | 26 | 21 |
10.2 Administrative expenses
| 03.31.2026 | 03.31.2025 | ||||
| Salaries and social security charges | 18 | 18 | |||
| Employees benefits | 1 | 2 | |||
| Defined benefit plans | 1 | 2 | |||
| Fees and compensation for services | 14 | 10 | |||
| Directors' and Syndics' fees | 1 | 1 | |||
| Property, plant and equipment depreciation | 2 | 2 | |||
| Maintenance | 1 | 2 | |||
| Transport and per diem | 1 | - | |||
| Taxes, rates and contributions | 3 | 4 | |||
| Other | 2 | 2 | |||
| Total administrative expenses | 44 | 43 |
| 29 |
| |
NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation) For the three-month period ended March 31, 2026, presented on comparative basis. (In millions of US$ – unless otherwise stated) |
NOTE 10: (Continuation)
10.3 Other operating income and expenses
| 03.31.2026 | 03.31.2025 | ||||
| Other operating income | |||||
| Insurance recovery | 2 | 8 | |||
| Recovery of provision for contingencies | - | 17 | |||
| Dividends received | 2 | - | |||
| Commercial interests | 4 | 3 | |||
| Other | 1 | 4 | |||
| Total other operating income | 9 | 32 | |||
| Other operating expenses | |||||
| Provision for contingencies | (4) | (10) | |||
| Results from derecognition of property, plant and equipment | (2) | - | |||
| Tax on bank transactions | (5) | (7) | |||
| Donations and contributions | (1) | - | |||
| Costs of concessions agreements completion | (1) | - | |||
| Other | (6) | (5) | |||
| Total other operating expenses | (19) | (22) |
| 30 |
| |
NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation) For the three-month period ended March 31, 2026, presented on comparative basis. (In millions of US$ – unless otherwise stated) |
NOTE 10: (Continuation)
10.4 Financial results
| 03.31.2026 | 03.31.2025 | ||||
| Financial income | |||||
| Financial interests | 4 | 33 | |||
| Total financial income | 4 | 33 | |||
| Financial costs | |||||
| Financial interests (1) | (32) | (35) | |||
| Fiscal interests | (5) | (4) | |||
| Bank and other financial expenses | (2) | (2) | |||
| Total financial costs | (39) | (41) | |||
| Other financial results | |||||
| Foreign currency exchange difference, net | (3) | 6 | |||
| Changes in the fair value of financial instruments | 11 | 32 | |||
| Result from present value measurement | (1) | (1) | |||
| Total other financial results | 7 | 37 | |||
| Total financial results, net | (28) | 29 |
| (1) | Net of US$ 3 million of borrowing costs capitalized in property, plant and equipment corresponding to the three-month period ended March 31, 2026. There are no borrowing costs capitalized in the three-month period ended March 31, 2025. |
| 31 |
| |
NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation) For the three-month period ended March 31, 2026, presented on comparative basis. (In millions of US$ – unless otherwise stated) |
NOTE 10: (Continuation)
10.5 Income tax
The breakdown of income tax charge is:
| 03.31.2026 | 03.31.2025 | ||||
| Current tax | 113 | 52 | |||
| Deferred tax | (179) | (56) | |||
| Total income tax - Profit | (66) | (4) |
Below is a reconciliation between income tax expense and the amount resulting from application of the tax rate on the profit before taxes:
| 03.31.2026 | 03.31.2025 | ||||
| Profit before income tax | 150 | 150 | |||
| Current income tax rate | 35% | 35% | |||
| Income tax at the statutory tax rate | 53 | 53 | |||
| Share of profit from companies | (23) | (16) | |||
| Effects of exchange differences and other results associated with the valuation of the currency, net | (41) | 27 | |||
| Effects of valuation of property, plant and equipment, intangible assets and financial assets | (118) | (94) | |||
| Effect for tax inflation adjustment | 51 | 33 | |||
| Other | 12 | (7) | |||
| Total income tax - Profit | (66) | (4) |
| 32 |
| |
NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation) For the three-month period ended March 31, 2026, presented on comparative basis. (In millions of US$ – unless otherwise stated) |
NOTE 11: NON-FINANCIAL ASSETS AND LIABILITIES
| 11.1 | Property, plant and equipment |
| Original values | |||||||||||
| Type of good | At the beginning | Increases (1) | Transfers | Decreases | At the end | ||||||
| Lands | 11 | - | - | - | 11 | ||||||
| Buildings | 178 | - | - | - | 178 | ||||||
| Vehicles | 10 | 1 | - | - | 11 | ||||||
| Furniture and fixtures, tools and software and communication equipment | 54 | 1 | 1 | - | 56 | ||||||
| Thermal generation plants | 1,288 | - | 5 | (3) | 1,290 | ||||||
| Renewable generation plants | 711 | - | - | - | 711 | ||||||
| Mining property, wells and drilling equipment | 2,554 | - | 66 | - | 2,620 | ||||||
| Drilling and work in progress | 631 | 197 | (72) | - | 756 | ||||||
| Other goods | 1 | - | - | - | 1 | ||||||
| Total at 03.31.2026 | 5,438 | 199 | - | (3) | 5,634 | ||||||
| Total at 03.31.2025 | 4,390 | 161 | - | - | 4,551 | ||||||
(1) Includes US$ 3 million of borrowing costs capitalized in property, plant and equipment corresponding to the three-month period ended March 31,2026. There are no borrowing costs capitalized in the three-month period ended March 31, 2025.
| 33 |
| |
NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation) For the three-month period ended March 31, 2026, presented on comparative basis. (In millions of US$ – unless otherwise stated) |
NOTE 11: (Continuation)
| Depreciation | Net book values | ||||||||||
| Type of good | At the beginning | For the period | At the end | At the end | At 12.31.2025 | ||||||
| Lands | - | - | - | 11 | 11 | ||||||
| Buildings | (79) | (1) | (80) | 98 | 99 | ||||||
| Vehicles | (8) | - | (8) | 3 | 2 | ||||||
| Furniture and fixtures, tools and software and communication equipment | (39) | (2) | (41) | 15 | 15 | ||||||
| Thermal generation plants | (635) | (22) | (657) | 633 | 653 | ||||||
| Renewable generation plants | (113) | (9) | (122) | 589 | 598 | ||||||
| Mining property, wells and drilling equipment | (1,260) | (81) | (1,341) | 1,279 | 1,294 | ||||||
| Drilling and work in progress | - | - | - | 756 | 631 | ||||||
| Other goods | (1) | - | (1) | - | - | ||||||
| Total at 03.31.2026 | (2,135) | (115) | (2,250) | 3,384 | |||||||
| Total at 03.31.2025 | (1,783) | (83) | (1,866) | 2,685 | |||||||
| Total at 12.31.2025 | 3,303 | ||||||||||
| 34 |
| |
NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation) For the three-month period ended March 31, 2026, presented on comparative basis. (In millions of US$ – unless otherwise stated) |
NOTE 11: (Continuation)
11.2 Intangible assets
| Original values | ||||||
| Type of good | At the beginning | Increases | At the end | |||
| Concession agreements | 2 | - | 2 | |||
| Goodwill | 35 | - | 35 | |||
| Intangible identified in acquisitions of companies | 71 | - | 71 | |||
| Digital assets | 1 | - | 1 | |||
| Total at 03.31.2026 | 109 | - | 109 | |||
| Total at 03.31.2025 | 111 | 1 | 112 | |||
| Amortization | ||||||
| Type of good | At the beginning | For the period | At the end | |||
| Concession agreements | (2) | - | (2) | |||
| Intangible identified in acquisitions of companies | (18) | (1) | (19) | |||
| Total at 03.31.2026 | (20) | (1) | (21) | |||
| Total at 03.31.2025 | (16) | (1) | (17) | |||
| Net book values | ||||||
| Type of good | At the end | At 12.31.2025 | ||||
| Goodwill | 35 | 35 | ||||
| Intangible identified in acquisitions of companies | 52 | 53 | ||||
| Digital assets | 1 | 1 | ||||
| Total at 03.31.2026 | 88 | |||||
| Total at 03.31.2025 | 95 | |||||
| Total at 12.31.2025 | 89 | |||||
| 35 |
| |
NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation) For the three-month period ended March 31, 2026, presented on comparative basis. (In millions of US$ – unless otherwise stated) |
NOTE 11: (Continuation)
11.3 Deferred tax assets and liabilities
The composition of the deferred tax assets and liabilities is as follows:
| 03.31.2026 | 12.31.2025 | ||
| Tax loss carryforwards | 8 | 2 | |
| Property, plant and equipment, intangible assets, right of use assets and inventories | 194 | 95 | |
| Derivatives | 65 | - | |
| Provisions and other non-deductible liabilities | 51 | 55 | |
| Other assets | 3 | 4 | |
| Deferred tax asset | 321 | 156 | |
| Property, plant and equipment, intangible assets and inventories | (46) | (115) | |
| Investments in companies | (11) | (10) | |
| Financial assets at fair value through profit and loss | (16) | (20) | |
| Derivatives | - | (16) | |
| Trade and other receivables | (1) | (2) | |
| Provisions and other non-deductible liabilities | - | (6) | |
| Deferred tax liability | (74) | (169) |
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:
| 03.31.2026 | 12.31.2025 | ||
| Deferred tax asset, net | 293 | 43 | |
| Deferred tax liability, net | (46) | (56) |
| 36 |
| |
NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation) For the three-month period ended March 31, 2026, presented on comparative basis. (In millions of US$ – unless otherwise stated) |
NOTE 11: (Continuation)
11.4 Inventories
| 03.31.2026 | 12.31.2025 | |||
| Current | ||||
| Materials and spare parts | 163 | 158 | ||
| Advances to suppliers | 12 | 9 | ||
| In process and finished products | 63 | 64 | ||
| Total (1) | 238 | 231 |
(1) It includes impairment loss as a result of the performed recoverability assessment for US$ 0.66 million, US$ 0.37 million and US$ 0.36 million for the three-month periods ended March 31, 2026 and 2025 and for the year ended December 31, 2025.
11.5 Provisions
| 03.31.2026 | 12.31.2025 | |||
| Non-Current | ||||
| Contingencies | 26 | 53 | ||
| Asset retirement obligation and wind turbines decommisioning | 29 | 29 | ||
| Environmental remediation | 18 | 18 | ||
| Total Non-Current | 73 | 100 | ||
| Current | ||||
| Asset retirement obligation and wind turbines decommisioning | 5 | 5 | ||
| Environmental remediation | 4 | 4 | ||
| Other provisions | 5 | 4 | ||
| Total Current | 14 | 13 |
| 37 |
| |
NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation) For the three-month period ended March 31, 2026, presented on comparative basis. (In millions of US$ – unless otherwise stated) |
NOTE 11: (Continuation)
The evolution of provisions is shown below:
| 03.31.2026 | ||||||
| Contingencies | Asset retirement obligation and decommisioning of wind turbines | Environmental remediation | ||||
| At the beginning of the year | 53 | 34 | 22 | |||
| Increases | 4 | - | - | |||
| Utilization | (33) | - | - | |||
| Foreign currency exchange difference | 2 | - | - | |||
| At the end of the period | 26 | 34 | 22 | |||
| 03.31.2025 | ||||||
| Contingencies | Asset retirement obligation and decommisioning of wind turbines | Environmental remediation | ||||
| At the beginning of the year | 95 | 30 | 18 | |||
| Increases | 11 | 1 | 1 | |||
| Utilization | (1) | (1) | - | |||
| Foreign currency exchange difference | (1) | - | - | |||
| Decreases | (45) | - | - | |||
| At the end of the period | 59 | 30 | 19 | |||
Provision for lawsuits and contingencies
In the claim initiated by POSA for alleged breaches of the Assignment Agreement entered into in 2016, on March 31, 2026, the National Court of Appeals in Commercial Matters disallowed the nullity appeal filed by the Company against the Final Award.
| 38 |
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation) For the three-month period ended March 31, 2026, presented on comparative basis. (In millions of US$ – unless otherwise stated) |
NOTE 11: (Continuation)
11.6 Income tax and minimum notional income tax provision
| 03.31.2026 | 12.31.2025 | ||||
| Non-current | |||||
| Income tax | 24 | 22 | |||
| Minimum notional income tax | 2 | 4 | |||
| Total non-current | 26 | 26 | |||
| Current | |||||
| Income tax | 197 | 83 | |||
| Total current | 197 | 83 |
11.7 Tax liabilities
| 03.31.2026 | 12.31.2025 | ||||
| Non-current | |||||
| Payment plans | 220 | 212 | |||
| Total non-current | 220 | 212 | |||
| Current | |||||
| Value added tax | 8 | 2 | |||
| Personal assets tax provision | 14 | 11 | |||
| Tax withholdings to be deposited | 14 | 11 | |||
| Payment plans | 15 | 14 | |||
| Royalties | 16 | 12 | |||
| Other | 2 | 6 | |||
| Total current | 69 | 56 |
| 39 |
| |
NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation) For the three-month period ended March 31, 2026, presented on comparative basis. (In millions of US$ – unless otherwise stated) |
NOTE 12: FINANCIAL ASSETS AND LIABILITIES
| 12.1 | Financial assets at fair value through profit and loss |
| 03.31.2026 | 12.31.2025 | ||||
| Non-current | |||||
| Shares | 33 | 33 | |||
| Total non-current | 33 | 33 | |||
| Current | |||||
| Government securities | 394 | 308 | |||
| Corporate bonds | 25 | 47 | |||
| Shares | 5 | 3 | |||
| Mutual funds | 17 | 8 | |||
| Total current | 441 | 366 |
| 12.2 | Trade and other receivables |
| 03.31.2026 | 12.31.2025 | ||||
| Non-Current | |||||
| Receivables under judicial collection | 22 | - | |||
| Trade receivables | 22 | - | |||
| Advances to suppliers | 44 | 42 | |||
| Prepaid expenses | - | 1 | |||
| Other receivables | 44 | 43 | |||
| Total non-current | 66 | 43 |
| 40 |
| |
NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation) For the three-month period ended March 31, 2026, presented on comparative basis. (In millions of US$ – unless otherwise stated) |
NOTE 12: (Continuation)
| Note | 03.31.2026 | 12.31.2025 | |||
| Current | |||||
| Receivables | 241 | 249 | |||
| CAMMESA | 166 | 118 | |||
| Related parties | 16 | 8 | 8 | ||
| Impairment of financial assets | (5) | (20) | |||
| Trade receivables, net | 410 | 355 | |||
| Related parties | 16 | 3 | 4 | ||
| Tax credits | 86 | 58 | |||
| Prepaid expenses | 37 | 18 | |||
| Guarantee deposits (1) | 378 | 142 | |||
| Expenses to be recovered | - | 3 | |||
| Receivables for sale of assets | 9 | 9 | |||
| GasAr Plan | 15 | 16 | |||
| Contractual indemnity receivable | 2 | 2 | |||
| Receivable for maintenance contract | 1 | 1 | |||
| Advances to employees | 1 | - | |||
| Dividends to be received | 2 | - | |||
| Impairment of other receivables | (1) | (1) | |||
| Other | 4 | 7 | |||
| Other receivables, net | 537 | 259 | |||
| Total current | 947 | 614 |
| (1) | Includes guarantee deposits on derivative financial instruments amounting for US$ 376 million and US$ 141 million as of March 31, 2026, and December 31, 2025, respectively. |
Due to the short-term nature of trade and other receivables, its book value is not considered to differ from its fair value. For non-current trade and other receivables, fair values do not significantly differ from book values.
The movements in the impairment of financial assets are as follows:
| Note | 03.31.2026 | 03.31.2025 | |||
| At the beginning of the year | #### | 20 | 1 | ||
| Increase | 4 | - | |||
| Decrease | (3) | - | |||
| Reclasification | (17) | - | |||
| Foreign currency exchange difference | 1 | - | |||
| At the end of the period | 5 | 1 |
| 41 |
| |
NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation) For the three-month period ended March 31, 2026, presented on comparative basis. (In millions of US$ – unless otherwise stated) |
NOTE 12: (Continuation)
The movements in the impairment of other receivables are as follows:
| Note | 03.31.2026 | 03.31.2025 | |||
| At the beginning of the year | #### | 1 | - | ||
| Increase | 1 | - | |||
| Decrease | (1) | - | |||
| At the end of the period | 1 | - |
| 12.3 | Cash and cash equivalents |
| 03.31.2026 | 12.31.2025 | ||||
| Banks | 129 | 335 | |||
| Term deposit | 7 | - | |||
| Mutual funds | 100 | 390 | |||
| Total | 236 | 725 |
| 12.4 | Borrowings |
| 03.31.2026 | 12.31.2025 | ||||
| Non-Current | |||||
| Financial borrowings | 45 | 45 | |||
| Corporate bonds | 1,796 | 1,799 | |||
| Total non-current | 1,841 | 1,844 | |||
| Current | |||||
| Financial borrowings | 9 | 33 | |||
| Corporate bonds | 30 | 15 | |||
| Total current | 39 | 48 | |||
| Total | 1,880 | 1,892 |
As of March 31, 2026, and December 31, 2025 the fair value of the Company’s CB amount approximately to US$ 1,871 million and US$ 1,833 million, respectively. Such values were calculated on the basis of the determined market price of the Company’s CB at the end of each period or year (fair value Level 1).
The carrying amounts of short-term borrowings approximate their fair value due to their short-term maturity.
The long-term borrowings were measured at amortized cost, which does not differ significantly from its fair value.
As of the issuance of these Consolidated Condensed Interim Financial Statements, the Company is in compliance with the covenants provided for in its indebtedness´ contracts.
| 42 |
| |
NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation) For the three-month period ended March 31, 2026, presented on comparative basis. (In millions of US$ – unless otherwise stated) |
NOTE 12: (Continuation)
12.4.1 Borrowings´ evolution:
The evolution of the consolidated borrowings for the three-month periods ended March 31, 2026 and 2025 is disclosed below.
| 03.31.2026 | 03.31.2025 | ||||
| Borrowings at the beginning of the year | 1,892 | 2,079 | |||
| Proceeds from borrowings | - | 45 | |||
| Payment of borrowings | (23) | (70) | |||
| Accrued interest | 32 | 35 | |||
| Payment of interests | (22) | (38) | |||
| Repurchase and redemption of CB | (2) | (360) | |||
| Borrowing costs capitalized in property, plant and equipment | 3 | - | |||
| Borrowings at the end of the period | 1,880 | 1,691 |
12.4.2 CB Issuance Program and frequent issuer prospectus
The latest update of the CB global program and the frequent issuer prospectus, including information as of December 31, 2025, was approved by CNV Resolutions No. RE-2026-27928092-APN-GE#CNV and No. RE-2026-27853437-APN-GE#CNV dated March 18, 2026.
12.4.3 CB
On April 1, 2026, the Company issued Class 27 CB for a nominal amount of US$ 200 million at a 5.49% fixed annual interest rate and maturing on April 1, 2029.
12.4.4 Partial Application of Proceeds – Class 26 CB
In compliance with CNV General Resolution No. 1,095/25, it is hereby reported, as a sworn statement, that as of March 31, 2026, the Company has partially applied a total of US$ 354 million of the Class 26 CB issuance, with US$ 96 million pending application.
Likewise, and in accordance with the use of proceeds disclosed in the issuance documents of the Class 26 CB, it is informed that such funds have been applied as follows: (i) placement agents’ fees and other issuance expenses; (ii) working capital contributions in Argentina; (iii) investments in property, plant and equipment in Argentina; and (iv) refinancing and redemption of the Company’s existing liabilities.
| 43 |
| |
NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation) For the three-month period ended March 31, 2026, presented on comparative basis. (In millions of US$ – unless otherwise stated) |
NOTE 12: (Continuation)
12.4.5 Bank borrowings
During the three-month period ended March 31, 2026, the Company repaid bank debt totaling US$ 23 million. Post-closing, the Company took out net bank financing for US$ 26 million (borrowings totaling US$ 34 million, net of repayments for US$ 8 million).
| 12.5 | Trade and other payables |
| Note | 03.31.2026 | 12.31.2025 | |||
| Non-Current | |||||
| Compensation agreements | 70 | 70 | |||
| Leases liability | 10 | 15 | |||
| Other | 1 | 1 | |||
| Other payables | 81 | 86 | |||
| Total non-current | 81 | 86 | |||
| Current | |||||
| Suppliers | 258 | 314 | |||
| Customer advances | 8 | 13 | |||
| Related parties | 16 | 44 | 29 | ||
| Trade payables | 310 | 356 | |||
| Compensation agreements | 14 | 14 | |||
| Leases liability | 21 | 21 | |||
| Arbitral award liability | 32 | - | |||
| Contractual penalty debt | 2 | 2 | |||
| Various creditors | 2 | 4 | |||
| Other payables | 71 | 41 | |||
| Total current | 381 | 397 |
Due to the short-term nature of trade and other payables, its book value is not considered to differ from its fair value. For other non-current liabilities, fair values do not significantly differ from book values.
| 44 |
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation) For the three-month period ended March 31, 2026, presented on comparative basis. (In millions of US$ – unless otherwise stated) |
NOTE 12: (Continuation)
| 12.6 | Fair value of financial instruments |
The following table shows the Company’s financial assets and liabilities measured at fair value as of March 31, 2026 and December 31, 2025:
| As of March 31, 2026 | Level 1 | Level 2 | Level 3 | Total | ||||
| Assets | ||||||||
| Financial assets at fair value through profit and loss | ||||||||
| Government securities | 394 | - | - | 394 | ||||
| Corporate bonds | 25 | - | - | 25 | ||||
| Mutual funds | 17 | - | - | 17 | ||||
| Shares | 7 | - | 31 | 38 | ||||
| Cash and cash equivalents | ||||||||
| Mutual funds | 100 | - | - | 100 | ||||
| Total assets | 543 | - | 31 | 574 | ||||
| Derivative financial instruments | - | 181 | - | 181 | ||||
| Total liabilities | - | 181 | - | 181 | ||||
| ||||||||
| As of December 31, 2025 | Level 1 | Level 2 | Level 3 | Total | ||||
| Assets | ||||||||
| Financial assets at fair value through profit and loss | ||||||||
| Government securities | 308 | - | - | 308 | ||||
| Corporate bonds | 47 | - | - | 47 | ||||
| Mutual funds | 8 | - | - | 8 | ||||
| Shares | 5 | - | 31 | 36 | ||||
| Cash and cash equivalents | ||||||||
| Mutual funds | 390 | - | - | 390 | ||||
| Derivative financial instruments | - | 52 | - | 52 | ||||
| Other receivables | ||||||||
| Guarantee deposits | 141 | - | - | 141 | ||||
| Total assets | 899 | 52 | 31 | 982 |
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. |
| 45 |
| |
NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation) For the three-month period ended March 31, 2026, presented on comparative basis. (In millions of US$ – unless otherwise stated) |
NOTE 12: (Continuation)
| - | Shares: it was mainly determined using the income-based approach through the “Indirect Cash Flow” method, that is, the net present value of expected future cash flows, mainly through the collection of dividends taking into consideration the equity interest in TJSM, TMB thermal power plants and Oldelval. |
| 12.7 | Hedge accounting |
During 2025 and 2026, the Company entered into forward crude oil sale contracts, without physical delivery, and designated a portion of these derivative financial instruments as cash flow hedges.
The Company applies cash flow hedge accounting to certain transactions to manage the international reference price risk associated with a specific volume of forecasted crude oil sales for the May 2025-April 2027 period, thereby ensuring stable cash flows.
As of March 31, 2026, the fair value of forward crude oil sale contracts designated as hedges amounts to a US$ 186 million loss, recognized in other comprehensive income as the hedge is effective; this amount is expected to be fully reclassified to profit or loss during the April 2026-April 2027 period, as the hedged crude oil sales are recognized in earnings.
The amount reclassified from other comprehensive income to revenue, from designated hedges, generated a US$ 21 million loss during the January - March 2026 period.
The contracts are entered into in markets or with financial institutions with high credit ratings; therefore, the Company considers that there are no significant credit risks to its operations as a result of its derivative activities.
NOTE 13: EQUITY COMPONENTS
| 13.1 | Share Capital |
As of March 31, 2026, the capital stock amounts to $ 1,364 million, including $ 4 million of treasury shares.
| 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 operations. Potential common shares will be deemed anti-dilutive when their conversion into common shares may result in an increase in the earnings per share or a decrease in the losses per share of the continuing operations.
| 46 |
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation) For the three-month period ended March 31, 2026, presented on comparative basis. (In millions of US$ – unless otherwise stated) |
NOTE 13: (Continuation)
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, 2026 and 2025, the Company does not hold any significant potential dilutive shares, therefore there are no differences with the basic earnings per share.
| 03.31.2026 | 03.31.2025 | |||
| Earning attributable to equity holders of the Company | 214 | 153 | ||
| Weighted average amount of outstanding shares | 1,360 | 1,360 | ||
| Basic and diluted earnings per share | 0.16 | 0.11 |
| 13.3 | Distribution of profits |
Dividends distributed to individuals, undivided estates or beneficiaries residing abroad, derived from profits generated during fiscal years beginning on or after January 1, 2018 are subject to a 7% withholding tax. The distribution of dividends is made based on the Company’s Stand-Alone Financial Statements which are presented in pesos, the legal currency in Argentina, pursuant to regulatory requirements.
The Company may pay and distribute dividends and any other type of profits to its shareholders, except if: (i) there is an event of breach; or (ii) the Company is not in a position to incur debt under the indentures governing the Class 21, Class 23, Additional Class 23 and Class 26 CB. As of the date of issuance of these Consolidated Condensed Interim Financial Statements, the Company has complied with all commitments set forth in the indentures governing the above-mentioned CB.
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation) For the three-month period ended March 31, 2026, presented on comparative basis. (In millions of US$ – unless otherwise stated) |
NOTE 14: STATEMENT OF CASH FLOWS’ COMPLEMENTARY INFORMATION
| 14.1 | Adjustments to reconcile net profit to cash flows from operating activities |
| Note | 03.31.2026 | 03.31.2025 | |||
| Income tax | 10.5 | (66) | (4) | ||
| Accrued interest | 32 | 8 | |||
| Depreciations and amortizations | 9 and 10.2 | 122 | 84 | ||
| Share of profit from associates and joint ventures | 5.1.2 | (67) | (46) | ||
| Results for property, plant and equipment sale and derecognition | 10.3 | 2 | - | ||
| Impairment of inventories | 1 | - | |||
| Impairment of financial assets | 1 | - | |||
| Result from present value measurement | 10.4 | 1 | 1 | ||
| Changes in the fair value of financial instruments | (4) | (27) | |||
| Exchange differences, net | 7 | (10) | |||
| Costs of concessions agreements completion | 10.3 | 1 | - | ||
| Provision (Recovery) for contingecies, net | 10.3 | 4 | (7) | ||
| Accrual of defined benefit plans | 9 and 10.2 | 2 | 3 | ||
| Earned dividends | 10.3 | (2) | - | ||
| Other | - | 1 | |||
| Adjustments to reconcile net profit to cash flows from operating activities | 34 | 3 |
| 14.2 | Changes in operating assets and liabilities |
| 03.31.2026 | 03.31.2025 | ||||
| Increase in trade receivables and other receivables | (472) | (112) | |||
| Increase in inventories | (8) | (23) | |||
| Increase in trade and other payables | 24 | 79 | |||
| Decrease in salaries and social security payables | (14) | (13) | |||
| Defined benefit plans payments | (1) | (1) | |||
| (Decrease) increase in tax liabilities | (7) | 5 | |||
| Decrease in provisions | (1) | (2) | |||
| Payments for derivative financial instruments, net | (4) | - | |||
| Changes in operating assets and liabilities | (483) | (67) |
| 14.3 | Significant non-cash transactions |
| 03.31.2026 | 03.31.2025 | ||||
| Acquisition of property, plant and equipment through an increase in trade payables | (100) | (98) | |||
| Borrowing costs capitalized in property, plant and equipment | (3) | - | |||
| Decrease in other receivables through an increase in financial assets at fair value through profit or loss | 141 | - | |||
| Decrease in provisions through an increase in other payables | (32) | - | |||
| Decrease in financial assets at fair value through profit and loss through an increase in trade receivables, net | - | (66) | |||
| Decrease in other receivables through intangible assets | - | (1) |
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation) For the three-month period ended March 31, 2026, presented on comparative basis. (In millions of US$ – unless otherwise stated) |
NOTE 15: CONTINGENT LIABILITIES AND ASSETS
During the three-month period ended March 31, 2026, the following changes were identified in relation to the contingent liabilities and assets reported in the Consolidated Financial Statements as of December 31, 2025:
15.1 Environmental claims
In the case brought by ASSUPA before the CSJN, mainly seeking remediation by defendants of the alleged environmental damage caused by hydrocarbon activity in the Neuquina Basin, it was decided to defer the analysis of the defenses raised by the defendants until the time of judgment, and the case is currently in the evidentiary period.
15.2 Administrative claims
In the declaratory action filed by the Company before the CSJN, following the declaration that the Province of Neuquén’s concession for the Veta Escondida block had expired, the Province of Neuquén and the Company entered into a settlement agreement dated March 4, 2026, which was approved by Provincial Decree No. 2026-01344823-NEU-GPN. Pursuant to this agreement, the dispute is resolved and the parties agreed that: (i) the Province revokes the declaration of expiration of the concession; (ii) Pampa withdraws the declaratory action filed before the CSJN; and (iii) Pampa undertakes to continue with the abandonment plan in the area for the purposes of relinquishing the concession to the Province.
15.3 Civil and Commercial Claims
In 2025, the Company initiated claims against ENARSA for breaches of the agreements entered into under the Gas.Ar Plan, seeking payment of certain overdue gas supply invoices in the amount of $ 53,753 million, plus interest. The claims are currently at an initial stage.
NOTE 16: RELATED PARTIES´ BALANCES AND TRANSACTIONS
16.1 Balances with related parties
| As of March 31, 2026 | Trade receivables | Other receivables | Trade payables | |||
| Current | Current | Current | ||||
| Associates and joint ventures | ||||||
| TGS | 8 | 3 | 16 | |||
| Other related parties | ||||||
| SACDE | - | - | 28 | |||
| 8 | 3 | 44 |
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation) For the three-month period ended March 31, 2026, presented on comparative basis. (In millions of US$ – unless otherwise stated) |
NOTE 16: (Continuation)
| As of December 31, 2025 | Trade receivables | Other receivables | Trade payables | |||
| Current | Current | Current | ||||
| Associates and joint ventures | ||||||
| TGS | 8 | 4 | 16 | |||
| Other related parties | ||||||
| SACDE | - | - | 13 | |||
| 8 | 4 | 29 |
16.2 Operations with related parties
| Operations for the three-month period |
services (1) |
services (2) |
||||||
| 2026 | 2025 | 2026 | 2025 | |||||
| Associates and joint ventures | ||||||||
| TGS | 15 | 13 | (28) | (26) | ||||
| Other related parties | ||||||||
| SACDE | - | - | (45) | (45) | ||||
| 15 | 13 | (73) | (71) | |||||
| (1) | Correspond mainly to advisory services provided in relation with technical assistance and sales of gas. |
| (2) | Correspond to natural gas transportation services and other services imputed to cost of sales for US$ 28 million and US$ 26 million and infrastructure works contracted to SACDE charged in property, plant and equipment for US$ 45 million and US$ 45 million, of which US$ 10 million and $ US$ 13 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 periods ended March 31, 2026 and 2025, respectively. |
NOTE 17: INVESTMENT COMMITMENTS
Development and evacuation projects in Vaca Muerta
Rincón de Aranda Development – RDA Project
Within the framework of the expansion of projects eligible under the RIGI established by PEN Executive Order No. 105/26 (see Note 2.5.2.2), on March 9, 2026, the Company, through its SVP Pampa Energía S.A. – Sucursal Dedicada Proyecto RDA, submitted an application to adhere to the RIGI as a long-term strategic export project related to the development of new shale oil wells and the construction of associated infrastructure in the Rincón de Aranda block (“RDA Project”).
The total estimated investment for the RDA Project amounts to approximately US$ 4,500 million.
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation) For the three-month period ended March 31, 2026, presented on comparative basis. (In millions of US$ – unless otherwise stated) |
NOTE 18: INCIDENT AT HINISA
During the period ended March 31, 2026, HINISA recorded U$$ 0.5 million losses corresponding to costs related to the incident arising from the weather event of January 11, 2025, which forced the Nihuil II and III power plants out of service.
In addition, HINISA continued the proceedings with the adjusters appointed by the insurance companies and, as of March 31, 2026, has received advance payments of US$ 1.7 million, recognized under the insurance recovery line item, as reimbursement for the cleaning and remediation expenses necessary to determine the final damages and costs, as well as the loss of profit coverage.
As
of the date of issuance of these Consolidated Condensed Interim Financial Statements, the final cost of the incident and the amount of
the insurance proceeds have not yet been assessed by HINISA.
NOTE 19: TERMINATION OF HYDROELECTRIC CONCESSIONS
On April 15, 2026, the Province of Mendoza sent a note to HINISA, noting that the company has acted diligently in restoring the power plants following the incident caused by the weather event of January 11, 2025, and that, given that it is progressing with the preparation of the tender documents, it requires providing greater certainty to potential tenderers regarding the receivables arising from the incident-related insurance coverage. For such purpose, it requested HINISA to evaluate alternatives to allow the assignment of such receivables to Hidroelectricidad Mendocina S.A. (future holder of the assets pursuant to Law No. 9,486 of the Province of Mendoza).
On
April 22, 2026, HINISA’s Board of Directors approved the execution of the assignment agreement of HINISA’s contractual position
under its insurance policies with respect to consequential damages, excluding the amounts required to cover the works performed and currently
under execution by HINISA.
NOTE
20: DOCUMENTATION SAFEKEEPING
In compliance with CNV General Resolution No. 629/14, the Company, infoms having sent non-sensitive work papers and information corresponding to the periods not covered by the statute of limitations for their keeping in the Administración de Archivos S.A. (AdeA)’s data warehouse located at Ruta 36, km 34.5, Florencio Varela, 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.
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation) For the three-month period ended March 31, 2026, presented on comparative basis. (In millions of US$ – unless otherwise stated) |
NOTE 21: SUBSEQUENT EVENTS
21.1 Ordinary and Extraordinary General Shareholders’ Meeting
On April 7, 2026, the Company’s General Ordinary and Extraordinary Shareholders’ Meeting resolved, among other matters:
- to approve the allocation of results for the year ended December 31, 2025, with reported profits for $ 495,789 million, which, plus appropriated translation differences of $ 15,742 million, resulted in total retained earnings of $ 511,531 million, to be allocated to the voluntary reserve;
- to reduce share capital by $ 19,920,279, with the corresponding cancellation of treasury shares held by the Company and its subsidiaries as of the business day prior to the Shareholders’ Meeting date, totaling 19,920,279 shares; and
- to extend the term of the CB issuance program for an additional five-year period as from December 9, 2026, the Program’s original maturity date.
21.2 UREA Project
On April 21, 2026, the Company, through its subsidiary FEPASAU, submitted an application for admission to the RIGI for the construction, operation and management of a 6,000-tn/d of granulated urea production complex in Bahía Blanca, where ammonia and other fertilizers will also be produced (the “UREA Project”). The UREA Project will be supplied with gas from Vaca Muerta and aims to produce 2.1 million tn/y of urea as from 2030, with a total estimated investment of approximately US$ 2,400 million.
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