Pampa Energy Inc 6-K, filed Aug 5, 2026
Pampa Energy Inc. (PAM)
About this 6-K
Pampa Energy Inc filed this 6-K on August 5, 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 August, 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 (ARS)
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Date: August 3, 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.
Free translation from the original prepared in Spanish for publication in Argentina
UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS
AS OF JUNE 30, 2026
AND FOR THE SIX AND THREE-MONTH PERIODS THEN ENDED
PRESENTED ON COMPARATIVE BASIS
(In millions of Argentine Pesos (“$”))
Report on review of interim financial information
To the Shareholders, President and Directors of Pampa Energía S.A.
Introduction
We have reviewed the accompanying condensed consolidated interim statement of financial position of Pampa Energía S.A. and its subsidiaries (the ‘Group’) as at June 30, 2026 and the related condensed consolidated interim and statements of comprehensive income for the six-month and three-month periods then ended, and condensed consolidated statements of changes in equity and cash flows for the six-month period then ended and selected explanatory notes.
Responsibilities of the Board of Directors
The board of Directors of Pampa Energía S.A. is responsible for the preparation and presentation of this condensed consolidated interim financial information in accordance with IFRS Accounting Standards and is therefore responsible for the preparation and presentation of the condensed interim financial statements mentioned in the first paragraph, in accordance with International Accounting Standard 34 (IAS 34).
Scope of review
We conducted our review in accordance with International Standard on Review Engagements 2410, 'Review of interim financial information performed by the independent auditor of the entity'. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed consolidated interim financial information is not prepared, in all material respects, in accordance with IAS 34.
Autonomous City of Buenos Aires, August 4, 2026.
PRICE WATERHOUSE & CO. S.R.L.
|
(Partner) |
C.P.C.E.C.A.B.A. Tº 1 Fº 17
Juan Manuel Gallego Tinto Contador Público (U.N.C.) C.P.C.E.C.A.B.A. Tº 413 Fº 001 |
www.pwc.com.ar |
Price Waterhouse & Co. S.R.L. Bouchard 557, 8th floor, C1106ABG Autonomous City of Buenos Aires, Argentina, T: +(54.11) 4850.0000 |
Free translation from the original prepared in Spanish for publication in Argentina
GLOSSARY OF TERMS
The following are not technical definitions, but they are helpful for the reader’s understanding of some terms used in the notes to the Unaudited Consolidated Condensed Interim Financial Statements of the Company.
| Terms | Definitions | |
| ADR | American Depositary Receipt | |
| BCBA | Buenos Aires Stock Exchange | |
| BCRA | Argentina´s Central Bank | |
| BNA | Banco de la Nación Argentina | |
| 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 | Piedra Buena thermal power plant | |
| CPI | Consumer's price index | |
| CSJN | Argentina’ Supreme Court of Justice | |
| CTB | CT Barragán S.A. | |
| CTEB | Ensenada Barragán thermal power plant | |
| CTG | Güemes thermal power plant | |
| CTGEBA | Genelba thermal power plant | |
| CTIW | Ingeniero White thermal power plant | |
| CTLL | Loma la Lata thermal power plant | |
| CTPP | Parque Pilar thermal power plant | |
| EISA | Energía e Inversiones S.A. | |
| ENARGAS | National Regulatory Authority of Gas | |
| ENARSA | Energía Argentina S.A. | |
| ENRE | National Regulatory Authority of Electricity | |
| ENReGE | National Regulatory Authority of Gas and Electricity (formerly ENARGAS and ENRE) | |
| FEPASAU | Fértil Pampa S.A.U. | |
| FTR | Five-Year Tariff Review | |
| GASA | Generación Argentina S.A. | |
| HIDISA | Hidroeléctrica Diamante S.A. |
| 1 |
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| |
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 | |
| INDEC | National Institute of Statistics and Censuses | |
| IPIM | Wholesale Domestic Price Index | |
| LNG | Liquefied Natural Gas | |
| m3 | Cubic meters | |
| MAT | WEM’s Forward Market | |
| MECON | Ministry of Economy of Argentina | |
| MEyM | Ministry of Energy and Mining | |
| MLC | Foreign Exchange 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 | |
| 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. | |
| PGSM | Complejo Puerto General San Martín | |
| PISA | Pampa Inversiones S.A. | |
| POSA | Petrobras Operaciones S.A. | |
| RDA | Rincón de Aranda | |
| RIGI | Incentive Regime for Large Investments | |
| 2 |
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| |
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. | |
| SMP | San Matías Pipeline S.A. | |
| SPV | Simple Proyect Vehicle | |
| 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 Electrical Market | |
| $ | Argentine Pesos |
| 3 |
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UNAUDITED CONSOLIDATED CONDENSED INTERIM STATEMENT OF
COMPREHENSIVE INCOME
For the six and three-month periods ended June 30, 2026, presented on comparative basis.
(In millions of Argentine Pesos (“$”))
| Six-month | Three-month | ||||||||
| Note | 06.30.2026 | 06.30.2025 | 06.30.2026 | 06.30.2025 | |||||
| Revenue | 8 | 1,873,911 | 1,008,884 | 1,066,080 | 570,169 | ||||
| Cost of sales | 9 | (1,242,203) | (700,707) | (693,952) | (399,697) | ||||
| Gross profit | 631,708 | 308,177 | 372,128 | 170,472 | |||||
| Selling expenses | 10.1 | (78,926) | (47,845) | (43,239) | (25,355) | ||||
| Administrative expenses | 10.2 | (128,892) | (93,701) | (67,783) | (48,646) | ||||
| Exploration expenses | 10.3 | (360) | (225) | (217) | (167) | ||||
| Other operating income | 10.4 | 39,887 | 60,181 | 27,395 | 24,708 | ||||
| Other operating expenses | 10.4 | (51,094) | (44,759) | (24,627) | (21,048) | ||||
| (Impairment) Recovery of impairment of intangible assets and inventories | (1,812) | (776) | (473) | 31 | |||||
| Recovery of impairment (Impairment) of financial assets | 3,214 | (2,508) | 4,702 | (2,296) | |||||
| Share of profit from associates and joint ventures | 5.1.2 | 216,737 | 91,347 | 122,904 | 43,203 | ||||
| Operating income | 630,462 | 269,891 | 390,790 | 140,902 | |||||
| Financial income | 10.5 | 10,703 | 38,744 | 5,655 | 3,250 | ||||
| Financial costs | 10.5 | (122,870) | (111,459) | (67,288) | (68,615) | ||||
| Other financial results | 10.5 | 30,389 | 138,110 | 20,497 | 100,060 | ||||
| Financial results, net | (81,778) | 65,395 | (41,136) | 34,695 | |||||
| Profit before income tax | 548,684 | 335,286 | 349,654 | 175,597 | |||||
| Income tax | 10.6 | 1,702 | (115,125) | (95,935) | (118,154) | ||||
| Profit of the period | 550,386 | 220,161 | 253,719 | 57,443 | |||||
| Other comprehensive income | |||||||||
| Items that will not be reclassified to profit or loss | |||||||||
| Exchange differences on translation | 217,633 | 576,497 | 372,875 | 418,436 | |||||
| Items that may be reclassified to profit or loss | |||||||||
| Derivatives (1) | (140,998) | 26,643 | 184,522 | 26,643 | |||||
| Income tax | 49,349 | (9,325) | (64,583) | (9,325) | |||||
| Exchange differences on translation | 65,884 | (3,794) | 4,987 | (21,464) | |||||
| Other comprehensive income of the period | 191,868 | 590,021 | 497,801 | 414,290 | |||||
| Total comprehensive income of the period | 742,254 | 810,182 | 751,520 | 471,733 | |||||
| (1) | See Note 12.7. |
| 4 |
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UNAUDITED CONSOLIDATED CONDENSED INTERIM
STATEMENT OF COMPREHENSIVE INCOME (Continuation)
For the six and three-month periods ended June 30, 2026, presented on comparative basis.
(In millions of Argentine Pesos (“$”))
| Six-month | Three-month | ||||||||
| Note | 06.30.2026 | 06.30.2025 | 06.30.2025 | 06.30.2025 | |||||
| Total profit (loss) of the period attributable to: | |||||||||
| Owners of the company | 544,744 | 220,570 | 251,378 | 58,684 | |||||
| Non-controlling interest | 5,642 | (409) | 2,341 | (1,241) | |||||
| 550,386 | 220,161 | 253,719 | 57,443 | ||||||
| Total comprehensive income (loss) of the period attributable to: | |||||||||
| Owners of the Company | 736,053 | 809,005 | 747,964 | 471,773 | |||||
| Non-controlling interest | 6,201 | 1,177 | 3,556 | (40) | |||||
| 742,254 | 810,182 | 751,520 | 471,733 | ||||||
| Earnings per share attributable to equity holders of the Company: | |||||||||
| Total basic and diluted earning per share | 13.2 | 403.22 | 162.18 | 187.60 | 43.15 | ||||
The accompanying notes are an integral part of these Unaudited Consolidated Condensed Interim Financial Statements.
| 5 |
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UNAUDITED CONSOLIDATED CONDENSED INTERIM STATEMENT
OF FINANCIAL POSITION
As of June 30, 2026, presented on comparative basis.
(In millions of Argentine Pesos (“$”))
| Note | 06.30.2026 | 12.31.2025 | |||
| ASSETS | |||||
| NON-CURRENT ASSETS | |||||
| Property, plant and equipment | 11.1 | 5,155,996 | 4,805,587 | ||
| Intangible assets | 11.2 | 130,768 | 130,376 | ||
| Right-of-use assets | 34,887 | 51,992 | |||
| Deferred tax asset | 11.3 | 269,187 | 62,442 | ||
| Investments in associates and joint ventures | 5.1.2 | 2,006,078 | 1,541,388 | ||
| Financial assets at fair value through profit and loss | 12.1 | 49,171 | 48,275 | ||
| Other assets | 414 | 467 | |||
| Trade and other receivables | 12.2 | 115,757 | 63,031 | ||
| Total non-current assets | 7,762,258 | 6,703,558 | |||
| CURRENT ASSETS | |||||
| Inventories | 11.4 | 419,040 | 335,514 | ||
| Financial assets at fair value through profit and loss | 12.1 | 448,240 | 533,116 | ||
| Derivatives | - | 75,562 | |||
| Trade and other receivables | 12.2 | 1,404,287 | 893,726 | ||
| Cash and cash equivalents | 12.3 | 1,451,006 | 1,054,459 | ||
| Total current assets | 3,722,573 | 2,892,377 | |||
| Total assets | 11,484,831 | 9,595,935 |
| 6 |
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UNAUDITED CONSOLIDATED CONDENSED INTERIM STATEMENT
OF FINANCIAL POSITION (Continuation)
As of June 30, 2026, presented on comparative basis.
(In millions of Argentine Pesos (“$”))
| Note | 06.30.2026 | 12.31.2025 | |||
| SHAREHOLDERS´ EQUITY | |||||
| Share capital | 13.1 | 1,340 | 1,360 | ||
| Share capital adjustment | 7,024 | 7,126 | |||
| Share premium | 21,732 | 19,950 | |||
| Treasury shares | 13.1 | 4 | 4 | ||
| Treasury shares adjustment | 19 | 21 | |||
| Treasury shares cost | (191) | (67,788) | |||
| Legal reserve | 66,943 | 65,723 | |||
| Voluntary reserve | 4,010,232 | 3,489,126 | |||
| Other reserves | 1,723 | 3,497 | |||
| Other comprehensive income | 1,182,038 | 1,201,897 | |||
| Retained earnings | 677,664 | 511,531 | |||
| Equity attributable to owners of the company | 5,968,528 | 5,232,447 | |||
| Non-controlling interest | 18,537 | 12,336 | |||
| Total equity | 5,987,065 | 5,244,783 | |||
| LIABILITIES | |||||
| NON-CURRENT LIABILITIES | |||||
| Provisions | 11.5 | 108,253 | 145,551 | ||
| Income tax and minimum notional income tax provision | 11.6 | 40,761 | 38,534 | ||
| Deferred tax liability | 11.3 | 68,201 | 81,493 | ||
| Tax liabilities | 11.7 | 299,145 | 309,156 | ||
| Defined benefit plans | 42,314 | 38,417 | |||
| Borrowings | 12.4 | 3,816,908 | 2,683,747 | ||
| Trade and other payables | 12.5 | 97,280 | 124,931 | ||
| Total non-current liabilities | 4,472,862 | 3,421,829 | |||
| CURRENT LIABILITIES | |||||
| Provisions | 11.5 | 19,783 | 18,552 | ||
| Income tax liability | 11.6 | 184,279 | 120,939 | ||
| Tax liabilities | 11.7 | 123,734 | 81,473 | ||
| Defined benefit plans | 8,367 | 9,279 | |||
| Salaries and social security payable | 38,854 | 52,327 | |||
| Derivatives | 79,566 | - | |||
| Borrowings | 12.4 | 37,087 | 69,942 | ||
| Trade and other payables | 12.5 | 533,234 | 576,811 | ||
| Total current liabilities | 1,024,904 | 929,323 | |||
| Total liabilities | 5,497,766 | 4,351,152 | |||
| Total liabilities and equity | 11,484,831 | 9,595,935 |
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 six -month period ended June 30, 2026, presented on comparative basis.
(In millions of Argentine Pesos (“$”))
| Equity holders of the company | Retained earnings | ||||||||||||||||||||||||||
| Share capital | Share capital adjustment | Share premium | Treasury shares | Treasury shares adjustment | Treasury shares cost | Legal reserve | Voluntary reserve | Other reserves | Other comprehensive income (loss) | Unappropiated retained earnings | Equity attributable to owners | Non-controlling interest | Total equity | ||||||||||||||
| Balance as of December 31, 2024 | 1,360 | 7,126 | 19,950 | 4 | 21 | (211) | 46,616 | 1,708,688 | 2,475 | 839,025 | 766,073 | 3,391,127 | 9,167 | 3,400,294 | |||||||||||||
| Voluntary reserve constitution | - | - | - | - | - | - | - | 766,073 | - | - | (766,073) | - | - | - | |||||||||||||
| Stock compensation plans | - | - | - | - | - | - | - | - | (1,111) | - | - | (1,111) | - | (1,111) | |||||||||||||
| Profit for the six-month period | - | - | - | - | - | - | - | - | - | - | 220,570 | 220,570 | (409) | 220,161 | |||||||||||||
| Other comprehensive income for the six-month period | - | - | - | - | - | - | 7,814 | 414,858 | - | 159,941 | 5,822 | 588,435 | 1,586 | 590,021 | |||||||||||||
| Balance as of June 30, 2025 | 1,360 | 7,126 | 19,950 | 4 | 21 | (211) | 54,430 | 2,889,619 | 1,364 | 998,966 | 226,392 | 4,199,021 | 10,344 | 4,209,365 | |||||||||||||
| Treasury shares acquisition | - | - | - | - | - | (67,577) | - | - | - | - | - | (67,577) | - | (67,577) | |||||||||||||
| Stock compensation plans | - | - | - | - | - | - | - | - | 2,133 | - | - | 2,133 | - | 2,133 | |||||||||||||
| Dividens ditribution | - | - | - | - | - | - | - | - | - | - | - | - | (1,884) | (1,884) | |||||||||||||
| Profit for the complementary six-month period | - | - | - | - | - | - | - | - | - | - | 275,219 | 275,219 | 1,812 | 277,031 | |||||||||||||
| Other comprehensive income for the complementary six-month period | - | - | - | - | - | - | 11,293 | 599,507 | - | 202,931 | 9,920 | 823,651 | 2,064 | 825,715 | |||||||||||||
| Balance as of December 31, 2025 | 1,360 | 7,126 | 19,950 | 4 | 21 | (67,788) | 65,723 | 3,489,126 | 3,497 | 1,201,897 | 511,531 | 5,232,447 | 12,336 | 5,244,783 | |||||||||||||
| Voluntary reserve constitution | - | - | - | - | - | - | - | 511,531 | - | - | (511,531) | - | - | - | |||||||||||||
| Treasury shares acquisition | (20) | (104) | - | 20 | 104 | - | - | - | - | - | - | - | - | - | |||||||||||||
| Capital reduction | - | - | - | (20) | (104) | 67,577 | - | (67,453) | - | - | - | - | - | - | |||||||||||||
| Stock compensation plans | - | 2 | 1,782 | - | (2) | 20 | - | - | (1,774) | - | - | 28 | - | 28 | |||||||||||||
| Profit for the six-month period | - | - | - | - | - | - | - | - | - | - | 544,744 | 544,744 | 5,642 | 550,386 | |||||||||||||
| Other comprehensive income for the six-month period | - | - | - | - | - | - | 1,220 | 77,028 | - | (19,859) | 132,920 | 191,309 | 559 | 191,868 | |||||||||||||
| Balance as of June 30, 2026 | 1,340 | 7,024 | 21,732 | 4 | 19 | (191) | 66,943 | 4,010,232 | 1,723 | 1,182,038 | 677,664 | 5,968,528 | 18,537 | 5,987,065 | |||||||||||||
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 six-month period ended June 30, 2026, presented on comparative basis.
(In millions of Argentine Pesos (“$”))
| Note | 06.30.2026 | 06.30.2025 | |||
| Cash flows from operating activities: | |||||
| Profit of the period | 550,386 | 220,161 | |||
| Adjustments to reconcile net profit to cash flows from operating activities | 14.1 | 264,524 | 170,306 | ||
| Changes in operating assets and liabilities | 14.2 | (833,658) | (267,928) | ||
| Net cash (used in) generated by operating activities | (18,748) | 122,539 | |||
| Cash flows from investing activities: | |||||
| Payment for property, plant and equipment acquisitions | (730,061) | (473,948) | |||
| Collection for sales of public securities and shares, net | 303,147 | 350,106 | |||
| Subscription of mutual funds, net | (12,527) | (4,906) | |||
| Capital integration in companies | (42,993) | (44,726) | |||
| Collection for intangible assets sales | - | 4,608 | |||
| Dividends collection | 2,509 | 4 | |||
| Collection for equity interests in areas sales | 6,201 | 2,410 | |||
| Net cash used in investing activities | (473,724) | (166,452) | |||
| Cash flows from financing activities: | |||||
| Proceeds from borrowings | 12.4 | 1,018,873 | 434,160 | ||
| Payment of borrowings | (44,190) | (115,152) | |||
| Payment of borrowings interests | 12.4 | (97,125) | (113,675) | ||
| Repurchase and redemption of corporate bonds | 12.4 | (2,832) | (804,524) | ||
| Payments of leases | (15,970) | (2,035) | |||
| Net cash generated by (used in) financing activities | 858,756 | (601,226) | |||
| Increase (Decrease) in cash and cash equivalents | 366,284 | (645,139) | |||
| Cash and cash equivalents at the beginning of the year | 12.3 | 1,054,459 | 761,231 | ||
| Exchange and conversion difference generated by cash and cash equivalents | 30,263 | 77,478 | |||
| Increase (Decrease) in cash and cash equivalents | 366,284 | (645,139) | |||
| Cash and cash equivalents at the end of the period | 12.3 | 1,451,006 | 193,570 |
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 six-month period ended June 30, 2026, presented on comparative basis.
(In millions of Argentine Pesos (“$”))
NOTE 1: GENERAL INFORMATION
1.1 General information of the Company
The Company is an Argentine company, which participates in the energy sector, mainly in the production of oil and gas and power generation.
In the oil and gas segment, the Company develops an important activity in gas and oil exploration and production, reaching a production level in the six-month period ended June 30, 2026 of 14.0 million m3/day of natural gas and 21.5 thousand bbl/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 June 30, 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 89% and 99%, in the domestic market.
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, and in SMP, a company that will be responsible for the construction and operation of the dedicated gas pipeline that will connect the Neuquén Basin with the San Matías Gulf to supply SESA. Finally, the segment includes advisory services provided to related companies.
Finally, the Company will develop the project for the construction and operation of a granulated urea production complex in Bahía Blanca, representing its entry into the fertilizer business (see Note 18).
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 half of 2026, the Argentine economy continued undergoing a stabilization process and recorded cumulative inflation of 16.8%, based on the CPI published by INDEC.
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation)
For the six-month period ended June 30, 2026, presented on comparative basis.
(In millions of Argentine Pesos (“$”))
NOTE 1: (Continuation)
At the international level, geopolitical tensions in the Middle East persisted during the first half of 2026 as a result of the military conflict in the region, affecting the international energy market. In particular, attacks on energy infrastructure and the temporary disruption of maritime traffic through the Strait of Hormuz, a strategic corridor for oil trade, led to constraints on crude oil production and exports and to higher logistics costs, which fueled the volatility of Brent crude prices in the international market.
During the first half of 2026, the Brent crude price experienced significant volatility, starting at values close to US$ 60/bbl in early 2026, rising above US$ 100/bbl toward the end of March 2026, and finally reaching values near US$ 70/bbl toward the end of June 2026, in line with the partial normalization of trade flows and progress in conflict-related international negotiations.
In this context, during the first semester 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.
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation)
For the six-month period ended June 30, 2026, presented on comparative basis.
(In millions of Argentine Pesos (“$”))
NOTE 2: (Continuation)
2.1 Oil and Gas
2.1.1 Export of liquid hydrocarbons and their derivatives
On July 20, 2026, SE Resolution No. 166/26 created the Export Operations Registry, in which all export notifications, objections and free export certificates for hydrocarbons and their derivatives must be recorded, and approved the Export Procedure for Liquid Hydrocarbons and their Derivatives, repealing the regime established by MEyM Resolution No. 241/17.
2.1.2 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.
2.1.3 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.
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.
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation)
For the six-month period ended June 30, 2026, presented on comparative basis.
(In millions of Argentine Pesos (“$”))
NOTE 2: (Continuation)
2.2 Generation
2.2.1 Emergency in the National Energy Sector
PEN Executive Order No. 585/26, dated July 11, 2026, extended until December 31, 2027 the National Energy Sector emergency declared by Executive Order No. 55/23 with respect to the electricity generation, transmission and distribution segments under federal jurisdiction, maintaining its original scope.
2.2.2 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.
2.2.3 Energy Plus Contracts
As from March, 2026, the Company no longer markets capacity and energy under Energy Plus contracts.
2.2.4 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 $14,669/MWh.
2.2.5 LNG purchase auctions
During the second quarter of 2026, the Electronic Gas Market (“MEGSA”) organized auctions in which ENARSA offered LNG volumes on a firm basis to distributors, industrial users, generators and traders.
For the June 1-August 5, 2026 period, Pampa was awarded a 74.5 million m³ volume for CTGEBA’s consumption, and CTB was awarded 51.6 million m³ for CTEB’s consumption. For the August 6-August 31, 2026 period, Pampa was awarded a 39.5 million m³ volume for CTGEBA’s consumption, and CTB was awarded 34.4 million m³ for CTEB’s consumption.
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation)
For the six-month period ended June 30, 2026, presented on comparative basis.
(In millions of Argentine Pesos (“$”))
NOTE 2: (Continuation)
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 2.37%, 2.90%, 2.52%, 2.17%, 4.21%, 4.19%, 2.61% and 1.73%, effective January through August 2026, respectively.
2.3.2 Contractual reorganization
Under PEN Executive Order No. 49/26, the National Energy Sector emergency for the natural gas transportation and distribution segments was extended until December 31, 2027.
Within this framework, SE Resolution No. 66/26 provided for the reconfiguration of the Argentine natural gas transportation system and established measures aimed at optimizing the system’s use, improving its operating efficiency and ensuring natural gas supply. It also instructed ENARGAS to adjust the tariff schemes, service regulations and capacity allocation mechanisms, on the condition that the revenues determined in the FTR remain unchanged.
Accordingly, on April 14, 2026, through ENARGAS Resolution No. 409/26, the process was concluded and the licensees were instructed to execute new firm transportation contracts pursuant to the established guidelines, effective as from May 1, 2026. In addition, the firm nature of certain exchange and displacement contracts was recognized and, finally, on April 29, 2026, the new applicable tariff schemes were published through ENARGAS Resolution No. 448/26.
As of the date of issuance of these Consolidated Condensed Interim Financial Statements, TGS is implementing the contracts and operating conditions resulting from this regulatory process.
2.4 Transmission
Transener and Transba tariff situation
Within the framework of the FTR carried out in 2025, ENReGE continued applying the monthly tariff adjustment mechanism based on the CPI and IPIM indexes and established 1.88%, 2.55%, 2.07%, 1.61%, 2.35%, 4.31%, 2.39% and 1.35% tariff increases from January through August 2026, respectively.
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation)
For the six-month period ended June 30, 2026, presented on comparative basis.
(In millions of Argentine Pesos (“$”))
NOTE 2: (Continuation)
2.5 Hydrocarbons Transportation
Technical regulations for the transportation of liquid hydrocarbons
On May 20, 2026, through SE Resolution No. 119/26, technical regulations for the transportation of liquid hydrocarbons were approved. These regulations apply to transportation systems passing through two or more provinces and/or intended for the total or partial export or import of crude oil, oil derivative products and natural gas liquids. Their main purpose is to unify and establish the technical guidelines for pipeline safety and integrity, thus replacing MEyM Resolution No. 120/17.
2.6 Regulations on access to the MLC
In April 2026, the BCRA introduced measures easing the financing and foreign exchange operations of projects under the RIGI, allowing certain direct investment contributions, financial borrowings and financings for the import of capital goods —where the funds are brought into the country and settled by shareholders or partners of SPV, among other authorized parties— to be computed as inflows in favor of such SPV. It further provided that such funds may be taken into account for the SPV’s access to the MLC for the payment of goods and services imports, with the simultaneity requirement deemed met when such access occurs within the terms set forth by the applicable regulations.
For more information on Argentina’s exchange rate policies, please visit the Central Bank’s website: www.bcra.gov.ar.
2.7 Tax regulations
2.7.1 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.
2.7.2 Other Regimes
2.7.2.1 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.
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation)
For the six-month period ended June 30, 2026, presented on comparative basis.
(In millions of Argentine Pesos (“$”))
NOTE 2: (Continuation)
PEN Executive Order No. 59/26 updated the export duties regime applicable to crude oil and introduced a distinction between conventional and unconventional crude oil production. Under the updated regime, conventional crude oil exports are exempt from export duties when the international Brent crude oil price is equal to or lower than US$ 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 June 30, 2026, crude oil and natural gas exports are subject to an 8% export duty rate .
2.7.2.2 Export duties regime for industrial products
PEN Executive Order No. 566/26, effective as from July 1, 2026, provided for the reduction and/or elimination of export duties applicable to various tariff codes of industrial products, a measure covering certain petrochemical products (xylene, hexane, toluene, styrene, polystyrene and rubber).
The regulation contemplates a progressive duty reduction scheme for the products sold by the Company, providing for the full elimination of the corresponding export duties by June 2027.
2.7.2.3 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.
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation)
For the six-month period ended June 30, 2026, presented on comparative basis.
(In millions of Argentine Pesos (“$”))
NOTE 3: BASIS OF PREPARATION
These Consolidated Condensed Interim Financial Statements for the six-month period ended June 30, 2026 have been prepared pursuant to the provisions of IAS 34, “Interim Financial Information”, are expressed in millions of pesos and were approved for their issuance by the Company’s Board of Directors on August 4, 2026.
The information included in the Consolidated Condensed Interim Financial Statements is recorded in US dollars, which is the Company’s functional currency and, in accordance with CNV requirements, is presented in pesos, the legal currency in Argentina.
This consolidated condensed interim financial information had been prepared under the historical cost convention, modified by the measurement of financial assets at fair value through profit or loss and they should be read together with the Consolidated Financial Statements as of December 31, 2025, which have been prepared under IFRS Accounting Standards.
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation)
For the six-month period ended June 30, 2026, presented on comparative basis.
(In millions of Argentine Pesos (“$”))
NOTE 3: (Continuation)
These Consolidated Condensed Interim Financial Statements for the six-month period ended June 30, 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 six-month period ended June 30, 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 six and three month periods ended June 30, 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.
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation)
For the six-month period ended June 30, 2026, presented on comparative basis.
(In millions of Argentine Pesos (“$”))
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.
4.2 New accounting standards, amendments and interpretations issued by the IASB not yet effective and not early adopted by the Company
Pursuant to CNV General Resolution No. 972/23, early application of IFRS accounting standards and/or amendments thereto is not permitted unless specifically permitted at the time of adoption.
As of June 30, 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. |
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation)
For the six-month period ended June 30, 2026, presented on comparative basis.
(In millions of Argentine Pesos (“$”))
NOTE 4: (Continuation)
| - | 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 Company is assessing the impact of applying the translation methodology on profit or loss, other comprehensive income arising from exchange differences on translation and comparative information. |
| - | IFRS 20 - “Regulatory Assets and Regulatory Liabilities”: issued in May 2026. It replaces IFRS 14 and sets out the accounting treatment for regulatory assets, liabilities, income and expenses arising when part or all of a regulated rate for goods or services supplied in one period is charged to customers in a different period. The standard is applicable retrospectively to annual and interim reporting periods beginning on or after January 1, 2029, with early adoption permitted. The Company is currently assessing the impact of its application on the Company’s operating results or financial position. |
| - | IAS 28 - “Investments in Associates and Joint Ventures”: in June 2026, the section on exemptions from applying the equity method was amended, extending the option to measure an investment in an associate or joint venture at fair value through profit or loss to those entities whose main activity consists of investing in specific types of assets under IFRS 18. The amendment is applicable upon adoption of IFRS 18, which is mandatory for reporting periods beginning on or after January 1, 2027. The application of the amendment will not have an impact on the Company’s operating results or financial position. |
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation)
For the six-month period ended June 30, 2026, presented on comparative basis.
(In millions of Argentine Pesos (“$”))
NOTE 5: GROUP STRUCTURE
5.1 Interest in subsidiaries, associates and joint ventures
5.1.1 Subsidiaries information
Unless otherwise indicated, the country is also the principal place where the subsidiary carries out its activities.
| 06.30.2026 | 12.31.2025 | |||||||
| Company | Country | Main activity | Direct and indirect participation % | Direct and indirect participation % | ||||
| Recursos Energéticos S.A.U. | Argentina | Generation | 100.00% | 100.00% | ||||
| EISA | Uruguay | Investment | 100.00% | 100.00% | ||||
| Enecor S.A. | Argentina | Electricity transportation | 70.00% | 70.00% | ||||
| FEPASAU | Argentina | Fertilizers | 100.00% | 100.00% | ||||
| Fideicomiso CIESA | Argentina | Investment | 100.00% | 100.00% | ||||
| GASA | Argentina | Investment | 100.00% | 100.00% | ||||
| HIDISA | Argentina | Generation | 61.00% | 61.00% | ||||
| HINISA | Argentina | Generation | 52.04% | 52.04% | ||||
| OCP | Gran Cayman | Investment | 100.00% | 100.00% | ||||
| OPGSA | Argentina | Oil | 100.00% | 100.00% | ||||
| PAMPA E&P S.A.U. | Argentina | Oil | 100.00% | 100.00% | ||||
| PB18 | Ecuador | Oil | 100.00% | 100.00% | ||||
| PEB | Bolivia | Investment | 100.00% | 100.00% | ||||
| PECSA | Chile | Trader | 100.00% | 100.00% | ||||
| PESOSA | Argentina | Trader | 100.00% | 100.00% | ||||
| Petrolera San Carlos S.A. | Venezuela | Oil | 100.00% | 100.00% | ||||
| PISA | Uruguay | Investment | 100.00% | 100.00% | ||||
| VAR | Argentina | Generation | 100.00% | 100.00% | ||||
| Vientos Solutions Argentina S.A.U. | Argentina | Advisory services | 100.00% | 100.00% |
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation)
For the six-month period ended June 30, 2026, presented on comparative basis.
(In millions of Argentine Pesos (“$”))
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; unless otherwise indicated, the share capital consists of millions of common shares with one vote per share:
| Information about the issuer | ||||||||||||
| Main activity | Date | Share capital | Profit (Loss) of the period | Equity | Direct and indirect participation % | |||||||
| Associates | ||||||||||||
| SESA | Gas treatment | 06.30.2026 | 1,203 | 175 | 214,661 | 20.00% | ||||||
| VMOS | Hydrocarbon transportation | 06.30.2026 | 210,908 | 48,757 | 863,402 | 9.09% | ||||||
| SMP | Gas transportation | 06.30.2026 | 101 | (3,596) | 9,504 | 20.00% | ||||||
| Joint ventures | ||||||||||||
| CIESA (1) | Investment | 06.30.2026 | 639 | 163,775 | 2,138,227 | 50.00% | ||||||
| Citelec (2) | Investment | 06.30.2026 | 556 | 74,027 | 605,058 | 50.00% | ||||||
| CTB | Generation | 06.30.2026 | 8,558 | 172,734 | 893,370 | 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 June 30, 2026, TGS’s common shares and ADR traded on the BCBA and NYSE were listed at $ 9,250.00 and US$ 29.73, respectively, conferring Pampa’s holding an approximate market value of $ 1,874,016 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 June 30, 2026, Transener’s common share price listed at the BCBA was $ 3,717.50, conferring Pampa’s indirect holding an approximate market value of $ 435,172 million.
The detail of the balances of investments in associates and joint ventures is as follows:
| 06.30.2026 | 12.31.2025 | |||
| Disclosed in non-current assets | ||||
| Associates | ||||
| SESA | 42,932 | 17,315 | ||
| VMOS | 78,491 | 44,672 | ||
| Other | 1,902 | - | ||
| Total associates | 123,325 | 61,987 | ||
| Joint ventures | ||||
| CIESA | 1,133,539 | 899,846 | ||
| Citelec | 302,529 | 227,627 | ||
| CTB | 446,685 | 351,928 | ||
| Total joint ventures | 1,882,753 | 1,479,401 | ||
| Total associates and joint ventures | 2,006,078 | 1,541,388 |
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation)
For the six-month period ended June 30, 2026, presented on comparative basis.
(In millions of Argentine Pesos (“$”))
NOTE 5: (Continuation)
The following table shows the breakdown of the result from investments in associates and joint ventures:
| 06.30.2026 | 06.30.2025 | |||
| Associates | ||||
| SESA | 9,530 | 2,685 | ||
| VMOS | 5,502 | (3,166) | ||
| SMP | (729) | - | ||
| Total associates | 14,303 | (481) | ||
| Joint ventures | ||||
| CIESA | 79,919 | 64,954 | ||
| Citelec | 36,148 | 19,285 | ||
| CTB | 86,367 | 7,589 | ||
| Total joint ventures | 202,434 | 91,828 | ||
| Total associates and joint ventures | 216,737 | 91,347 |
The evolution of investments in associates and joint ventures is as follows:
| 06.30.2026 | 06.30.2025 | |||
| At the beginning of the year | 1,541,388 | 1,024,769 | ||
| Dividends | - | (52,936) | ||
| Capital integration | 42,993 | 44,726 | ||
| Share of profit | 216,737 | 91,347 | ||
| Exchange differences on translation | 204,960 | 166,907 | ||
| At the end of the period | 2,006,078 | 1,274,813 |
5.1.3 CTB
Reversal of impairment losses on non-financial assets
During the quarter ended June 30, 2026, CTB has identified significant changes in the environment where it operates and, consequently, has determined CTEB’s recoverable amount as of June 30, 2026.
The recoverability assessment resulted in the reversal of impairment losses recognized in previous fiscal years, with a $ 45,902 million (US$ 31 million) impact on the Company’s share of profit from associates and joint ventures for the period.
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation)
For the six-month period ended June 30, 2026, presented on comparative basis.
(In millions of Argentine Pesos (“$”))
NOTE 5: (Continuation)
5.1.4 CIESA – TGS
Perito Moreno Gas Pipeline (GPM) Expansion
MECON Resolution No. 676/26 approved the application to opt into the RIGI for the GPM expansion project, effective as of April 30, 2026.
TGS conducted a public call for tenders to award a portion of the incremental transportation capacity associated with the expansion of the GPM and on April 15, 2026, 5.4 million m³/day were awarded.
The Company and certain subsidiaries participated in the call and were awarded a total volume of 3.2 million m³/day for a 35-year term.
On June 3, 2026, TGS conducted the public call for tenders to award the remaining capacity. The Company and certain subsidiaries participated with offers. As of the date of issuance of these Consolidated Condensed Interim Financial Statements, the process is still ongoing.
Integral NGL Project
On June 10, 2026, TGS’s Board of Directors approved the development of the Integral NGL Project, which is structured into two independent, but operationally linked, single projects representing successive stages of the processing, fractionating, obtaining and storing of natural gas liquids, and the subsequent product dispatch and export.
The Integral NGL Project will be executed through the following companies controlled by TGS and established as SPV within RIGI’s framework:
(i) Procesadora de Gas del Sur S.A. (“PGS”): in charge of the so-called separation project, consisting of the construction, operation and maintenance of a natural gas processing plant located in Tratayén, Province of Neuquén, and a natural gas stream segregation pipeline, which will enable the provision of natural gas gathering and processing services to gas producers; and
(ii) Midstream de Gas del Sur S.A. (“MGS”): in charge of the transportation, fractionation, storage and commercialization project, comprising the construction, operation and maintenance of a multiproduct pipeline connecting the Tratayén Plant with a fractionation plant in the Bahía Blanca area, Province of Buenos Aires, together with storage and dispatch facilities. Under the project, MGS will acquire the natural gas liquids mix resulting from PGS’s processing for its transportation, fractionation into commercial products (such as propane, butane and natural gasoline), storage and subsequent sale to export customers.
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation)
For the six-month period ended June 30, 2026, presented on comparative basis.
(In millions of Argentine Pesos (“$”))
NOTE 5: (Continuation)
Weather event
During the period ended June 30, 2026, TGS recorded $ 5,481 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 $ 12,847 million from insurance companies as an advance payment on account of the final settlement of the claim.
5.1.5 SMP
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, 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 an approximately 470-km-long, 36-inch-diameter pipeline with a transportation capacity of up to 28 million m³/day. The estimated investment amounts to US$ 1.5 billion, and the pipeline is expected to be commissioned in the second quarter of 2028.
MECON Resolution No. 873/26 approved the application to opt into the RIGI for the project undertaken by SMP, effective as from June 1, 2026.
5.2 Oil and gas participations
Assets and liabilities as of June 30, 2026 and December 31, 2025 and the production cost of the Joint Operations and Consortiums in which the Company participates corresponding to the six-month periods ended June 30, 2026 and 2025 are detailed below:
| 06.30.2026 | 12.31.2025 | |||
| Non-current assets | 203,135 | 176,789 | ||
| Current assets | 15,230 | 12,935 | ||
| Total assets | 218,365 | 189,724 | ||
| Non-current liabilities | 60,400 | 57,631 | ||
| Current liabilities | 33,055 | 30,414 | ||
| Total liabilities | 93,455 | 88,045 | ||
| 06.30.2026 | 06.30.2025 | |||
| Production cost | 43,194 | 56,581 |
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.
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation)
For the six-month period ended June 30, 2026, presented on comparative basis.
(In millions of Argentine Pesos (“$”))
NOTE 5: (Continuation)
Relinquishment process for the Veta Escondida block
Provincial Executive Order No. 605/26 approved the Settlement Agreement entered into between the Province of Neuquén and Pampa on March 4, 2026, which set aside the executive order declaring the termination of the Veta Escondida block´s concession. In addition, the parties agreed to conclude the process for relinquishing the block to the Province. Within this framework, the Company and Total Austral (co-concessionaire) are jointly carrying out such process in an orderly manner, with the Company being responsible for the abandonment of wells and facilities and the required environmental remediation works.
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.
6.2 Financial risk management
The Company’s activities are subject to several financial risks: market risk (including the exchange rate risk, the interest rate risk and price risk), credit risk and liquidity risk.
No significant changes have arisen in risk management policies since last fiscal year.
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation)
For the six-month period ended June 30, 2026, presented on comparative basis.
(In millions of Argentine Pesos (“$”))
NOTE 7: SEGMENT INFORMATION
The Company is a fully integrated power company in Argentina, which participates 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, SMP, 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.
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation)
For the six-month period ended June 30, 2026, presented on comparative basis.
(In millions of Argentine Pesos (“$”))
NOTE 7: (Continuation)
| in millions of US$ | in millions of $ | |||||||||||||
| Consolidated profit and loss information for the six-month period ended June 30, 2026 | Oil and gas | Generation | Petrochemicals | Holding, Transportation and others | Eliminations | Consolidated | Consolidated | |||||||
| Revenue - local market | 237 | 629 | 123 | 17 | - | 1,006 | 1,429,407 | |||||||
| Revenue - foreign market | 210 | - | 103 | - | - | 313 | 444,504 | |||||||
| Intersegment revenue | 134 | 1 | - | - | (135) | - | - | |||||||
| Cost of sales | (396) | (408) | (192) | - | 134 | (862) | (1,242,203) | |||||||
| Gross profit | 185 | 222 | 34 | 17 | (1) | 457 | 631,708 | |||||||
| Selling expenses | (48) | (2) | (6) | - | - | (56) | (78,926) | |||||||
| Administrative expenses | (42) | (22) | (3) | (25) | 1 | (91) | (128,892) | |||||||
| Exploration expenses | - | - | - | - | - | - | (360) | |||||||
| Other operating income | 15 | 8 | 1 | 4 | - | 28 | 39,887 | |||||||
| Other operating expenses | (5) | (7) | (10) | (15) | - | (37) | (51,094) | |||||||
| Impairment of intangible assets and inventories | (1) | - | - | (1) | - | (2) | (1,812) | |||||||
| Recovery of impairment of financial assets | 2 | - | - | - | - | 2 | 3,214 | |||||||
| Share of profit from associates and joint ventures | 7 | 60 | - | 81 | - | 148 | 216,737 | |||||||
| Operating income | 113 | 259 | 16 | 61 | - | 449 | 630,462 | |||||||
| Financial income | - | 8 | - | - | (1) | 7 | 10,703 | |||||||
| Financial costs | (57) | (18) | - | (13) | 1 | (87) | (122,870) | |||||||
| Other financial results | (12) | 29 | (7) | 12 | - | 22 | 30,389 | |||||||
| Financial results, net | (69) | 19 | (7) | (1) | - | (58) | (81,778) | |||||||
| Profit before income tax | 44 | 278 | 9 | 60 | - | 391 | 548,684 | |||||||
| Income tax | 48 | (56) | (3) | 10 | - | (1) | 1,702 | |||||||
| Profit of the period | 92 | 222 | 6 | 70 | - | 390 | 550,386 | |||||||
| Depreciation and amortization | 192 | 72 | - | - | - | 264 | 373,263 | |||||||
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation)
For the six-month period ended June 30, 2026, presented on comparative basis.
(In millions of Argentine Pesos (“$”))
NOTE 7: (Continuation)
| in millions of US$ | in millions of $ | |||||||||||||
| Consolidated profit and loss information for the six-month period ended June 30, 2026 | Oil and gas | Generation | Petrochemicals | Holding, Transportation and others | Eliminations | Consolidated | Consolidated | |||||||
| Total profit of the period attributable to: | ||||||||||||||
| Owners of the company | 92 | 218 | 6 | 70 | - | 386 | 544,744 | |||||||
| Non-controlling interest | - | 4 | - | - | - | 4 | 5,642 | |||||||
| Consolidated financial position information as of June 30, 2026 | ||||||||||||||
| Assets | 3,289 | 3,143 | 187 | 1,228 | (98) | 7,749 | 11,484,831 | |||||||
| Liabilities | 2,637 | 674 | 64 | 432 | (98) | 3,709 | 5,497,766 | |||||||
| Net book values of property, plant and equipment (1) | 2,141 | 1,304 | - | 34 | - | 3,479 | 5,155,996 | |||||||
| Additional consolidated information as of June 30, 2026 | ||||||||||||||
| Increases in property, plant and equipment and intangible assets | 424 | 4 | - | 2 | - | 430 | 604,987 | |||||||
| (1) | Assets located in Argentina. |
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation)
For the six-month period ended June 30, 2026, presented on comparative basis.
(In millions of Argentine Pesos (“$”))
NOTE 7: (Continuation)
| in millions of US$ | in millions of $ | |||||||||||||
| Consolidated profit and loss information for the six-month period ended June 30, 2025 | Oil and gas | Generation | Petrochemicals | Holding, Transportation and others | Eliminations | Consolidated | Consolidated | |||||||
| Revenue - local market | 228 | 379 | 131 | 12 | - | 750 | 839,685 | |||||||
| Revenue - foreign market | 66 | 1 | 83 | - | - | 150 | 169,199 | |||||||
| Intersegment revenue | 56 | - | - | - | (56) | - | - | |||||||
| Cost of sales | (270) | (205) | (206) | - | 56 | (625) | (700,707) | |||||||
| Gross profit | 80 | 175 | 8 | 12 | - | 275 | 308,177 | |||||||
| Selling expenses | (34) | (2) | (6) | (1) | - | (43) | (47,845) | |||||||
| Administrative expenses | (40) | (21) | (3) | (20) | - | (84) | (93,701) | |||||||
| Exploration expenses | - | - | - | - | - | - | (225) | |||||||
| Other operating income | 16 | 13 | 19 | 5 | - | 53 | 60,181 | |||||||
| Other operating expenses | (8) | (5) | (5) | (22) | - | (40) | (44,759) | |||||||
| Impairment of intangible assets and inventories | (1) | - | - | - | - | (1) | (776) | |||||||
| Impairment of financial assets | (2) | - | - | - | - | (2) | (2,508) | |||||||
| Share of profit from associates and joint ventures | 2 | 7 | - | 67 | - | 76 | 91,347 | |||||||
| Operating income | 13 | 167 | 13 | 41 | - | 234 | 269,891 | |||||||
| Financial income | - | 8 | 27 | - | - | 35 | 38,744 | |||||||
| Financial costs | (55) | (25) | - | (19) | - | (99) | (111,459) | |||||||
| Other financial results | - | 80 | 3 | 39 | - | 122 | 138,110 | |||||||
| Financial results, net | (55) | 63 | 30 | 20 | - | 58 | 65,395 | |||||||
| Profit (Loss) before income tax | (42) | 230 | 43 | 61 | - | 292 | 335,286 | |||||||
| Income tax | 13 | (111) | (14) | 13 | - | (99) | (115,125) | |||||||
| Profit (Loss) of the period | (29) | 119 | 29 | 74 | - | 193 | 220,161 | |||||||
| Depreciation and amortization | 118 | 60 | 3 | - | - | 181 | 200,769 | |||||||
| 30 |
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation)
For the six-month period ended June 30, 2026, presented on comparative basis.
(In millions of Argentine Pesos (“$”))
NOTE 7: (Continuation)
| in millions of US$ | in millions of $ | |||||||||||||
| Consolidated profit and loss information for the six-month period ended June 30, 2025 | Oil and gas | Generation | Petrochemicals | Holding, Transportation and others | Eliminations | Consolidated | Consolidated | |||||||
| Total profit (loss) of the period attributable to: | ||||||||||||||
| Owners of the company | (29) | 119 | 29 | 74 | - | 193 | 220,570 | |||||||
| Non-controlling interest | - | - | - | - | - | - | (409) | |||||||
| Consolidated financial position information as of December 31, 2025 | ||||||||||||||
| Assets | 2,513 | 3,046 | 147 | 931 | (43) | 6,594 | 9,595,935 | |||||||
| Liabilities | 1,737 | 668 | 73 | 554 | (43) | 2,989 | 4,351,152 | |||||||
| - | ||||||||||||||
| Net book values of property, plant and equipment (1) | 1,896 | 1,370 | - | 37 | - | 3,303 | 4,805,587 | |||||||
| Additional consolidated information as of June 30, 2025 | ||||||||||||||
| Increases in property, plant and equipment, intangible assets and right-of-use assets | 453 | 28 | 6 | 6 | - | 493 | 547,630 | |||||||
| (1) | Assets located in Argentina. |
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation)
For the six-month period ended June 30, 2026, presented on comparative basis.
(In millions of Argentine Pesos (“$”))
NOTE 8: REVENUE
| 06.30.2026 | 06.30.2025 | |||
| Gas sales | 315,360 | 260,931 | ||
| Oil sales | 312,638 | 66,618 | ||
| Other sales | 7,185 | 6,324 | ||
| Oil and gas sales subtotal (1) | 635,183 | 333,873 | ||
| Energy sales in spot market | 513,957 | 139,061 | ||
| Energy sales by supply contracts | 297,570 | 215,457 | ||
| Fuel supply | 79,200 | 63,358 | ||
| Other sales | 4,892 | 5,492 | ||
| Generation sales subtotal | 895,619 | 423,368 | ||
| Products from catalytic reforming sales | 162,527 | 129,899 | ||
| Styrene sales | 41,405 | 33,723 | ||
| Synthetic rubber sales | 59,589 | 39,171 | ||
| Polystyrene sales | 55,337 | 35,365 | ||
| Other sales | 815 | 401 | ||
| Petrochemicals sales subtotal | 319,673 | 238,559 | ||
| Technical assistance and administration services sales | 23,072 | 12,823 | ||
| Other sales | 364 | 261 | ||
| Holding, Transportation and others subtotal | 23,436 | 13,084 | ||
| Total revenue (2)(3) | 1,873,911 | 1,008,884 | ||
| Total revenue | 1,873,911 | 1,008,884 |
| (1) | See Note 12.7. |
| (2) | Revenues from CAMMESA represent 41% and 37% of total revenues from sales for the six-month periods ended June 30, 2026 and 2025, respectively, and correspond mainly to the Oil and gas and Generation segments. |
| (3) | Including $ 25,168 million and $ 5,997 million in the Oil and gas segment and $ 6,935 million and $ 5,158 million in the Petrochemical segment corresponding to export duties for the six-month periods ended June 30, 2026 and 2025, respectively. |
| 32 |
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation)
For the six-month period ended June 30, 2026, presented on comparative basis.
(In millions of Argentine Pesos (“$”))
NOTE 9: COST OF SALES
| 06.30.2026 | 06.30.2025 | |||
| Inventories at the beginning of the year | 335,514 | 230,095 | ||
| Plus: Charges of the period | ||||
| Purchases of inventories, energy and gas | 461,585 | 223,026 | ||
| Salaries and social security charges | 63,532 | 48,663 | ||
| Employees benefits | 8,519 | 8,078 | ||
| Defined benefit plans | 1,673 | 2,093 | ||
| Works contracts, fees and compensation for services | 114,366 | 80,334 | ||
| Property, plant and equipment depreciation | 347,540 | 192,826 | ||
| Intangible assets amortization | 2,476 | 2,223 | ||
| Right-of-use assets amortization | 17,233 | 1,047 | ||
| Energy transportation | 4,854 | 8,627 | ||
| Transportation and freights | 36,959 | 24,485 | ||
| Consumption of materials | 16,281 | 13,104 | ||
| Penalties | 5,254 | 958 | ||
| Maintenance | 44,995 | 34,125 | ||
| Canons and royalties | 124,778 | 55,371 | ||
| Environmental control | 3,865 | 2,872 | ||
| Rental and insurance | 34,177 | 17,695 | ||
| Surveillance and security | 5,628 | 4,830 | ||
| Taxes, rates and contributions | 6,460 | 1,863 | ||
| Other | 2,603 | 1,825 | ||
| Total charges of the period | 1,302,778 | 724,045 | ||
| Exchange differences on translation | 22,951 | 40,617 | ||
| Less: Inventories at the end of the period | (419,040) | (294,050) | ||
| Total cost of sales | 1,242,203 | 700,707 |
| 33 |
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation)
For the six-month period ended June 30, 2026, presented on comparative basis.
(In millions of Argentine Pesos (“$”))
NOTE 10: OTHER ITEMS OF THE STATEMENT OF COMPREHENSIVE INCOME
10.1 Selling expenses
| 06.30.2026 | 06.30.2025 | ||||
| Salaries and social security charges | 3,436 | 2,815 | |||
| Employees benefits | 165 | 134 | |||
| Fees and compensation for services | 2,443 | 1,037 | |||
| Property, plant and equipment depreciation | - | 5 | |||
| Taxes, rates and contributions | 16,036 | 9,235 | |||
| Transportation and freights | 55,951 | 33,768 | |||
| Other | 895 | 851 | |||
| Total selling expenses | 78,926 | 47,845 |
10.2 Administrative expenses
| 06.30.2026 | 06.30.2025 | ||||
| Salaries and social security charges | 49,459 | 36,631 | |||
| Employees benefits | 4,079 | 3,858 | |||
| Defined benefit plans | 3,806 | 4,747 | |||
| Fees and compensation for services | 41,737 | 24,684 | |||
| Compensation agreements | 3,228 | 574 | |||
| Directors' and Syndics' fees | 4,152 | 3,373 | |||
| Property, plant and equipment depreciation | 6,014 | 4,668 | |||
| Consumption of materials | 151 | 203 | |||
| Maintenance | 1,680 | 1,813 | |||
| Transport and per diem | 1,761 | 867 | |||
| Rental and insurance | 323 | 401 | |||
| Surveillance and security | 841 | 772 | |||
| Taxes, rates and contributions | 9,738 | 7,454 | |||
| Communications | 854 | 455 | |||
| Other | 1,069 | 3,201 | |||
| Total administrative expenses | 128,892 | 93,701 |
10.3 Exploration expenses
| 06.30.2026 | 06.30.2025 | ||||
| Geological and geophysical expenses | 360 | 225 | |||
| Total exploration expenses | 360 | 225 |
| 34 |
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation)
For the six-month period ended June 30, 2026, presented on comparative basis.
(In millions of Argentine Pesos (“$”))
NOTE 10: (Continuation)
10.4 Other operating income and expenses
| 06.30.2026 | 06.30.2025 | ||||
| Other operating income | |||||
| Insurance recovery | 5,305 | 14,691 | |||
| Results for property, plant and equipment sale | 534 | 6 | |||
| Results for other assets sale and derecognition | 2,232 | 809 | |||
| Result from intangible assets sale | - | 2,048 | |||
| Recovery of provision for contingencies | 1,414 | 18,505 | |||
| Dividends received | 3,424 | 4 | |||
| Commercial interests | 8,721 | 4,724 | |||
| GasAr Plan | 7,013 | 14,486 | |||
| Contractual income | 7,278 | - | |||
| Other | 3,966 | 4,908 | |||
| Total other operating income | 39,887 | 60,181 | |||
| Other operating expenses | |||||
| Provision for contingencies | (13,059) | (15,971) | |||
| Results for property, plant and equipment derecognition | (3,507) | (1) | |||
| Results for other assets sale and derecognition | (783) | (34) | |||
| Tax on bank transactions | (14,901) | (15,451) | |||
| Donations and contributions | (3,475) | (1,156) | |||
| Institutional promotion | (918) | (701) | |||
| Costs of concessions agreements completion | (1,096) | (582) | |||
| Royalties GasAr Plan | (952) | (2,466) | |||
| Incident costs | (866) | (2,027) | |||
| Project expenses | (8,387) | - | |||
| Other | (3,150) | (6,370) | |||
| Total other operating expenses | (51,094) | (44,759) |
| 35 |
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation)
For the six-month period ended June 30, 2026, presented on comparative basis.
(In millions of Argentine Pesos (“$”))
NOTE 10: (Continuation)
10.5 Financial results
| 06.30.2026 | 06.30.2025 | |||
| Financial income | ||||
| Financial interests | 9,250 | 38,316 | ||
| Other interests | 1,453 | 428 | ||
| Total financial income | 10,703 | 38,744 | ||
| Financial costs | ||||
| Financial interests (1) | (101,050) | (85,556) | ||
| Commercial and other interests | (32) | (305) | ||
| Fiscal interests | (18,369) | (23,381) | ||
| Bank and other financial expenses | (3,419) | (2,217) | ||
| Total financial costs | (122,870) | (111,459) | ||
| Other financial results | ||||
| Foreign currency exchange difference, net | 10,852 | 19,947 | ||
| Changes in the fair value of financial instruments | 28,676 | 114,272 | ||
| Result from present value measurement | (10,529) | 1,594 | ||
| Result from repurchase of CB | 354 | 2,043 | ||
| Other financial results | 1,036 | 254 | ||
| Total other financial results | 30,389 | 138,110 | ||
| Total financial results, net | (81,778) | 65,395 |
(1) Net of $ 10,109 million and $ 1,617 million borrowing costs capitalized in property, plant and equipment corresponding to the six-month periods ended June 30, 2026 and 2025 respectively.
| 36 |
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation)
For the six-month period ended June 30, 2026, presented on comparative basis.
(In millions of Argentine Pesos (“$”))
NOTE 10: (Continuation)
10.6 Income tax
The breakdown of income tax charge is:
| 06.30.2026 | 06.30.2025 | ||||
| Current tax | 183,475 | 69,430 | |||
| Deferred tax | (157,626) | 44,946 | |||
| Difference between previous fiscal year income tax provision and the income tax statement | (27,551) | 749 | |||
| Total income tax - (Profit) Loss | (1,702) | 115,125 |
Below is a reconciliation between income tax expense and the amount resulting from application of the tax rate on the profit before taxes:
| 06.30.2026 | 06.30.2025 | ||||
| Profit before income tax | 548,684 | 335,286 | |||
| Current income tax rate | 35% | 35% | |||
| Income tax at the statutory tax rate | 192,039 | 117,350 | |||
| Share of profit from companies | (75,858) | (31,972) | |||
| Effects of exchange differences and other results associated with the valuation of the currency, net | 24,655 | 148,836 | |||
| Effects of valuation of property, plant and equipment, intangible assets and financial assets | (298,169) | (190,481) | |||
| Difference between previous fiscal year income tax provision and deferred tax and the income tax statement | 26,518 | 706 | |||
| Effect for tax inflation adjustment | 128,917 | 68,085 | |||
| Other | 196 | 2,601 | |||
| Total income tax - (Profit) Loss | (1,702) | 115,125 |
| 37 |
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation)
For the six-month period ended June 30, 2026, presented on comparative basis.
(In millions of Argentine Pesos (“$”))
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 | Traslation effect | At the end | |||||||
| Lands | 15,313 | - | - | - | 284 | 15,597 | |||||||
| Buildings | 258,531 | - | 371 | - | 4,836 | 263,738 | |||||||
| Vehicles | 12,488 | 1,113 | - | (39) | 386 | 13,948 | |||||||
| Furniture and fixtures, tools and software and communication equipment | 79,915 | 1,214 | 1,690 | (293) | 1,956 | 84,482 | |||||||
| Thermal generation plants | 1,874,712 | 247 | 6,044 | (3,617) | 34,853 | 1,912,239 | |||||||
| Renewable generation plants | 1,032,611 | 49 | (445) | - | 20,978 | 1,053,193 | |||||||
| Mining property, wells and drilling equipment | 3,715,256 | - | 442,661 | - | 93,575 | 4,251,492 | |||||||
| Drilling and work in progress | 913,848 | 600,970 | (450,321) | (2) | 23,851 | 1,088,346 | |||||||
| Other goods | 756 | - | - | - | 13 | 769 | |||||||
| Total at 06.30.2026 | 7,903,430 | 603,593 | - | (3,951) | 180,732 | 8,683,804 | |||||||
| Total at 06.30.2025 | 4,525,269 | 545,363 | - | (467) | 804,963 | 5,875,128 | |||||||
(1) Includes $ 10,109 million and $ 1,617 million of borrowing costs capitalized for the six-month periods ended June 30, 2026 and 2025. respectively
| 38 |
Free translation from the original prepared in Spanish for publication in Argentina |
| |
NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation)
For the six-month period ended June 30, 2026, presented on comparative basis.
(In millions of Argentine Pesos (“$”))
NOTE 11: (Continuation)
| Depreciation | Net book values | ||||||||||||||
| Type of good | At the beginning | Decreases | For the period | Traslation effect | At the end | At the end | At 12.31.2025 | ||||||||
| Lands | - | - | - | - | - | 15,597 | 15,313 | ||||||||
| Buildings | (113,562) | - | (5,111) | (2,373) | (121,046) | 142,692 | 144,969 | ||||||||
| Vehicles | (9,214) | 39 | (759) | (288) | (10,222) | 3,726 | 3,274 | ||||||||
| Furniture and fixtures, tools and software and communication equipment | (57,755) | 290 | (4,334) | (1,601) | (63,400) | 21,082 | 22,160 | ||||||||
| Thermal generation plants | (924,355) | 113 | (67,480) | (20,271) | (1,011,993) | 900,246 | 950,357 | ||||||||
| Renewable generation plants | (162,656) | - | (24,690) | (6,053) | (193,399) | 859,794 | 869,955 | ||||||||
| Mining property, wells and drilling equipment | (1,829,565) | - | (251,174) | (46,255) | (2,126,994) | 2,124,498 | 1,885,691 | ||||||||
| Drilling and work in progress | - | - | - | - | - | 1,088,346 | 913,848 | ||||||||
| Other goods | (736) | - | (6) | (12) | (754) | 15 | 20 | ||||||||
| Total at 06.30.2026 | (3,097,843) | 442 | (353,554) | (76,853) | (3,527,808) | 5,155,996 | |||||||||
| Total at 06.30.2025 | (1,834,736) | 466 | (197,499) | (324,100) | (2,355,869) | 3,519,259 | |||||||||
| Total at 12.31.2025 | 4,805,587 | ||||||||||||||
| 39 |
Free translation from the original prepared in Spanish for publication in Argentina |
| |
NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation)
For the six-month period ended June 30, 2026, presented on comparative basis.
(In millions of Argentine Pesos (“$”))
NOTE 11: (Continuation)
11.2 Intangible assets
| Original values | ||||||||||||
| Type of good | At the beginning | Increases | Decreases | Impairment | Traslation effect | |||||||
| At the end | ||||||||||||
| Concession agreements | 2,692 | - | - | - | 1,029 | 3,721 | ||||||
| Goodwill | 50,354 | - | - | - | 934 | 51,288 | ||||||
| Intangible identified in acquisitions of companies | 100,795 | - | - | - | 1,870 | 102,665 | ||||||
| Digital assets | 1,623 | 1,394 | - | (864) | 70 | 2,223 | ||||||
| Total at 06.30.2026 | 155,464 | 1,394 | - | (864) | 3,903 | 159,897 | ||||||
| Total at 06.30.2025 | 113,512 | 1,714 | (2,523) | (307) | 18,256 | 130,652 | ||||||
| Amortization | ||||||||||||
| Type of good | At the beginning | For the period | Traslation effect | |||||||||
| At the end | ||||||||||||
| Concession agreements | (2,692) | - | (1,029) | (3,721) | ||||||||
| Intangible identified in acquisitions of companies | (22,396) | (2,476) | (536) | (25,408) | ||||||||
| Total at 06.30.2026 | (25,088) | (2,476) | (1,565) | (29,129) | ||||||||
| Total at 06.30.2025 | (14,342) | (2,223) | (2,281) | (18,846) | ||||||||
| Net book values | ||||||||||||
| Type of good | At the end | At 12.31.2025 | ||||||||||
| Goodwill | 51,288 | 50,354 | ||||||||||
| Intangible identified in acquisitions of companies | 77,257 | 78,399 | ||||||||||
| Digital assets | 2,223 | 1,623 | ||||||||||
| Total at 06.30.2026 | 130,768 | |||||||||||
| Total at 06.30.2025 | 111,806 | |||||||||||
| Total at 12.31.2025 | 130,376 | |||||||||||
| 40 |
Free translation from the original prepared in Spanish for publication in Argentina |
| |
NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation)
For the six-month period ended June 30, 2026, presented on comparative basis.
(In millions of Argentine Pesos (“$”))
NOTE 11: (Continuation)
11.3 Deferred tax assets and liabilities
The composition of the deferred tax assets and liabilities is as follows:
| 06.30.2026 | 12.31.2025 | |||
| Tax loss carryforwards | 6,964 | 1,958 | ||
| Property, plant and equipment, right-of-use assets, intangible assets and inventories | 234,270 | 42,449 | ||
| Derivatives | 26,939 | - | ||
| Trade and other receivables | 3,118 | 296 | ||
| Other assets | 1,633 | 5,494 | ||
| Provisions and other non-deductible liabilities | 56,528 | 72,709 | ||
| Deferred tax asset | 329,452 | 122,906 | ||
| Property, plant and equipment, intangible assets and inventories | (68,644) | (71,845) | ||
| Investments in companies | (16,403) | (14,832) | ||
| Financial assets at fair value through profit and loss | (15,748) | (28,945) | ||
| Derivatives | - | (23,593) | ||
| Trade and other receivables | (27,647) | (2,719) | ||
| Provisions and other non-deductible liabilities | (24) | (23) | ||
| Deferred tax liability | (128,466) | (141,957) |
Deferred tax assets and liabilities are offset only when there is a legally enforceable right to offset tax assets and liabilities; and when deferred income tax charges are associated with the same fiscal authority. Therefore, they are disclosed in the Consolidated Condensed Interim Statement of Financial Position:
| 06.30.2026 | 12.31.2025 | |||
| Deferred tax asset, net | 269,187 | 62,442 | ||
| Deferred tax liability, net | (68,201) | (81,493) |
| 41 |
Free translation from the original prepared in Spanish for publication in Argentina |
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation)
For the six-month period ended June 30, 2026, presented on comparative basis.
(In millions of Argentine Pesos (“$”))
NOTE 11: (Continuation)
11.4 Inventories
| 06.30.2026 | 12.31.2025 | ||||
| Current | |||||
| Materials and spare parts | 243,720 | 229,357 | |||
| Advances to suppliers | 22,231 | 13,326 | |||
| In process and finished products | 153,089 | 92,831 | |||
| Total (1) | 419,040 | 335,514 |
(1) It includes impairment loss as a result of the performed recoverability assessment for $ 948 million (US$ 0.65 million), $ 469 million (US$ 0.46 million) and $ 367 million (US$ 0.36 million) for the six-month periods ended June 30, 2026 and 2025 and for the year ended December 31, 2025, respectively.
11.5 Provisions
| 06.30.2026 | 12.31.2025 | |||
| Non-current | ||||
| Contingencies | 39,251 | 77,937 | ||
| Asset retirement obligation and wind turbines decommisioning | 44,228 | 41,624 | ||
| Environmental remediation | 24,773 | 25,990 | ||
| Other provisions | 1 | - | ||
| Total non-current | 108,253 | 145,551 | ||
| Current | ||||
| Contingencies | 167 | - | ||
| Asset retirement obligation and wind turbines decommisioning | 6,970 | 6,877 | ||
| Environmental remediation | 5,339 | 5,319 | ||
| Other provisions | 7,307 | 6,356 | ||
| Total current | 19,783 | 18,552 |
| 42 |
Free translation from the original prepared in Spanish for publication in Argentina |
| |
NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation)
For the six-month period ended June 30, 2026, presented on comparative basis.
(In millions of Argentine Pesos (“$”))
NOTE 11: (Continuation)
The evolution of provisions is shown below:
| 06.30.2026 | ||||||
| Contingencies | Asset retirement obligation and wind turbines decommisioning | Environmental remediation | ||||
| At the beginning of the year | 77,937 | 48,501 | 31,309 | |||
| Increase | 10,272 | 1,744 | 184 | |||
| Utilization | (45,876) | (33) | (73) | |||
| Exchange differences on translation | (1,527) | 986 | 568 | |||
| Decrease | (1,388) | - | (1,876) | |||
| At the end of the period | 39,418 | 51,198 | 30,112 | |||
| 06.30.2025 | ||||||
| Contingencies | Asset retirement obligation and wind turbines decommisioning | Environmental remediation | ||||
| At the beginning of the year | 98,546 | 30,350 | 18,465 | |||
| Increase | 16,273 | 1,623 | 2,175 | |||
| Utilization | (1,937) | (1,126) | (1) | |||
| Exchange differences on translation | 7,932 | 5,051 | 3,199 | |||
| Decrease | (49,127) | (766) | (407) | |||
| At the end of the period | 71,687 | 35,132 | 23,431 | |||
Provision for lawsuits and contingencies
In the lawsuit filed by POSA for alleged breaches of the Assignment Agreement executed in 2016, on March 31, 2026, the National Chamber of Appeals in Commercial Matters disallowed the appeal for nullity filed by the Company against the Final Award. As of the issuance date of these Consolidated Condensed Interim Financial Statements, the Company has settled all obligations due.
| 43 |
Free translation from the original prepared in Spanish for publication in Argentina |
| |
NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation)
For the six-month period ended June 30, 2026, presented on comparative basis.
(In millions of Argentine Pesos (“$”))
NOTE 11: (Continuation)
11.6 Income tax and minimum notional income tax provision
| 06.30.2026 | 12.31.2025 | ||||
| Non-current | |||||
| Income tax | 38,313 | 32,508 | |||
| Minimum notional income tax | 2,448 | 6,026 | |||
| Total non-current | 40,761 | 38,534 | |||
| Current | |||||
| Income tax | 184,279 | 120,939 | |||
| Total current | 184,279 | 120,939 |
11.7 Tax liabilities
| 06.30.2026 | 12.31.2025 | ||||
| Non-current | |||||
| Payment plans | 299,145 | 309,156 | |||
| Total non-current | 299,145 | 309,156 | |||
| Current | |||||
| Value added tax | 39,589 | 3,460 | |||
| Personal assets tax provision | 8,500 | 15,770 | |||
| Tax withholdings to be deposited | 19,237 | 16,002 | |||
| Payment plans | 20,880 | 19,907 | |||
| Royalties | 30,318 | 17,186 | |||
| Other | 5,210 | 9,148 | |||
| Total current | 123,734 | 81,473 |
| 44 |
Free translation from the original prepared in Spanish for publication in Argentina |
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation)
For the six-month period ended June 30, 2026, presented on comparative basis.
(In millions of Argentine Pesos (“$”))
NOTE 12: FINANCIAL ASSETS AND LIABILITIES
12.1 Financial assets at fair value through profit and loss
| 06.30.2026 | 12.31.2025 | ||||
| Non-current | |||||
| Shares | 49,171 | 48,275 | |||
| Total non-current | 49,171 | 48,275 | |||
| Current | |||||
| Government securities | 392,795 | 448,832 | |||
| Corporate bonds | 23,440 | 68,219 | |||
| Shares | 6,654 | 4,042 | |||
| Mutual funds | 25,351 | 12,023 | |||
| Total current | 448,240 | 533,116 |
12.2 Trade and other receivables
| 06.30.2026 | 12.31.2025 | ||||
| Non-current | |||||
| Receivables | 32,891 | - | |||
| Trade receivables | 32,891 | - | |||
| Non-current | |||||
| Advances to suppliers | 80,367 | 60,604 | |||
| Tax credits | 2,128 | 50 | |||
| Prepaid expenses | 173 | 1,723 | |||
| Contractual indemnity receivable | - | 592 | |||
| Guarantee deposits | 3 | 4 | |||
| Other | 195 | 58 | |||
| Other receivables | 82,866 | 63,031 | |||
| Total non-current | 115,757 | 63,031 |
| 45 |
Free translation from the original prepared in Spanish for publication in Argentina |
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation)
For the six-month period ended June 30, 2026, presented on comparative basis.
(In millions of Argentine Pesos (“$”))
NOTE 12: (Continuation)
| Note | 06.30.2026 | 12.31.2025 | |||
| Current | |||||
| Receivables | 461,922 | 361,965 | |||
| CAMMESA | 320,801 | 171,648 | |||
| Related parties | 16 | 4,972 | 11,577 | ||
| Impairment of financial assets | (2,715) | (29,085) | |||
| Trade receivables, net | 784,980 | 516,105 | |||
| Current | |||||
| Related parties | 16 | 105,596 | 6,659 | ||
| Tax credits | 115,695 | 84,377 | |||
| Advances to suppliers | 10,482 | 44 | |||
| Prepaid expenses | 42,055 | 26,730 | |||
| Guarantee deposits (1) | 297,210 | 207,186 | |||
| Expenses to be recovered | 33 | 4,681 | |||
| Insurance to be recovered | 12 | 173 | |||
| Receivables for sale of assets | 6,669 | 13,095 | |||
| GasAr Plan | 29,917 | 22,904 | |||
| Advances to employees | 732 | 656 | |||
| Contractual indemnity receivable | 2,255 | 2,783 | |||
| Receivable for maintenance contract | 1,309 | 878 | |||
| Dividends to be received | 915 | - | |||
| Impairment of other receivables | (61) | (1,008) | |||
| Other | 6,488 | 8,463 | |||
| Other receivables, net | 619,307 | 377,621 | |||
| Total current | 1,404,287 | 893,726 |
| (1) | Includes guarantee deposits on derivatives amounting for $ 294,914 million and $ 205,627 million as of June 30, 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.
| 46 |
Free translation from the original prepared in Spanish for publication in Argentina |
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation)
For the six-month period ended June 30, 2026, presented on comparative basis.
(In millions of Argentine Pesos (“$”))
NOTE 12: (Continuation)
The movements in the impairment of financial assets are as follows:
| 06.30.2026 | 06.30.2025 | ||||
| At the beginning of the year | 29,085 | 833 | |||
| Increase | 6,119 | 2,563 | |||
| Decrease | (8,910) | (139) | |||
| Reclasification | (23,549) | - | |||
| Exchange differences on translation | (30) | 4 | |||
| At the end of the period | 2,715 | 3,261 |
The movements in the impairment of other receivables are as follows:
| 06.30.2026 | 06.30.2025 | ||||
| At the beginning of the year | 1,008 | 14 | |||
| Increase | 743 | 16 | |||
| Decrease | (1,693) | (10) | |||
| Exchange differences on translation | 3 | 1 | |||
| At the end of the period | 61 | 21 |
12.3 Cash and cash equivalents
| 06.30.2026 | 12.31.2025 | ||||
| Cash | 297 | 291 | |||
| Banks | 870,076 | 487,206 | |||
| Term deposit | 17 | 16 | |||
| Mutual funds | 580,616 | 566,946 | |||
| Total | 1,451,006 | 1,054,459 |
| 47 |
Free translation from the original prepared in Spanish for publication in Argentina |
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation)
For the six-month period ended June 30, 2026, presented on comparative basis.
(In millions of Argentine Pesos (“$”))
NOTE 12: (Continuation)
12.4 Borrowings
| 06.30.2026 | 12.31.2025 | ||||
| Non-current | |||||
| Financial borrowings | 117,078 | 65,475 | |||
| Corporate bonds | 3,699,830 | 2,618,272 | |||
| Total non-current | 3,816,908 | 2,683,747 | |||
| Current | |||||
| Financial borrowings | 2,225 | 47,738 | |||
| Corporate bonds | 34,862 | 22,204 | |||
| Total current | 37,087 | 69,942 | |||
| Total | 3,853,995 | 2,753,689 |
As of June 30, 2026, and December 31, 2025 the fair value of the Company’s CB amount approximately to $ 3,863,834 million and $ 2,666,318 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.
| 48 |
Free translation from the original prepared in Spanish for publication in Argentina |
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation)
For the six-month period ended June 30, 2026, presented on comparative basis.
(In millions of Argentine Pesos (“$”))
NOTE 12: (Continuation)
12.4.1 Borrowings´ evolution:
The evolution of the consolidated borrowings for the six-month periods ended June 30, 2026 and 2025 is disclosed below:
| 06.30.2026 | 06.30.2025 | ||||
| Borrowings at the beginning of the year | 2,753,689 | 2,145,013 | |||
| Proceeds from borrowings | 1,018,873 | 434,160 | |||
| Payment of borrowings | (44,190) | (125,482) | |||
| Accrued interest | 101,050 | 85,556 | |||
| Payment of interests | (97,125) | (113,675) | |||
| Repurchase and redemption of CB | (2,832) | (804,524) | |||
| Result from repurchase of CB | (354) | (2,043) | |||
| Borrowing costs capitalized in property, plant and equipment | 10,109 | 1,617 | |||
| Exchange differences on translation | 114,775 | 297,129 | |||
| Borrowings at the end of the period | 3,853,995 | 1,917,751 |
12.4.2 CB Issuance Program and frequent issuer prospectus
The latest update of the CB global program and the frequent issuer prospectus, including information as of December 31, 2025, was approved by CNV Resolutions No. RE-2026-27928092-APN-GE#CNV and No. RE-2026-27853437-APN-GE#CNV dated March 18, 2026.
On April 7, 2026, the Company’s Ordinary and Extraordinary General Shareholders’ Meeting resolved to approve the CB Issuance Program’s term extension for an additional five-year period as from December 9, 2026, the Program’s expiration date.
| 49 |
Free translation from the original prepared in Spanish for publication in Argentina |
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation)
For the six-month period ended June 30, 2026, presented on comparative basis.
(In millions of Argentine Pesos (“$”))
NOTE 12: (Continuation)
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.
Additionally, on May 14, 2026, the Company reopened the international Class 26 CB for a face value of US$ 500 million, at a fixed 7.75% annual interest rate and with a 7.60% yield, maturing in November 2037. As a result, the total outstanding face value of Class 26 CB amounts to US$ 950 million.
12.4.4 Partial Application of Proceeds
In compliance with CNV General Resolution No. 1,095/25, the Company reports, in the form of a sworn statement, that as of June 30, 2026, it has partially applied a total of US$ 450 million of the Class 26 CB issuance, with US$ 500 million, corresponding to the May 2026 reopening, remaining 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.
Furthermore, as of June 30, 2026, the sum of US$ 200 million, corresponding to the amount issued under Class 27 CB, remains pending application.
12.4.5 Bank borrowings
During the six-month period ended June 30, 2026, the Company took out net bank debt of US$ 2.3 million (totaling US$ 34 million, net of repayments of US$ 31.7 million).
| 50 |
Free translation from the original prepared in Spanish for publication in Argentina |
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation)
For the six-month period ended June 30, 2026, presented on comparative basis.
(In millions of Argentine Pesos (“$”))
NOTE 12: (Continuation)
12.5 Trade and other payables
| Note | 06.30.2026 | 12.31.2025 | |||
| Non-current | |||||
| Customer guarantees | 36 | 35 | |||
| Trade payables | 36 | 35 | |||
| Compensation agreements | 81,081 | 102,166 | |||
| Leases liability | 15,467 | 21,442 | |||
| Contractual penalty debt | - | 592 | |||
| Other | 696 | 696 | |||
| Other payables | 97,244 | 124,896 | |||
| Total non-current | 97,280 | 124,931 | |||
| Current | |||||
| Suppliers | 391,232 | 455,296 | |||
| Customer advances | 3,454 | 19,512 | |||
| Related parties | 16 | 71,709 | 42,241 | ||
| Trade payables | 466,395 | 517,049 | |||
| Compensation agreements | 26,476 | 19,851 | |||
| Leases liability | 24,897 | 31,264 | |||
| Arbitral award liability | 3,514 | - | |||
| Contractual penalty debt | 1,808 | 2,367 | |||
| Various creditors | 10,144 | 6,280 | |||
| Other payables | 66,839 | 59,762 | |||
| Total current | 533,234 | 576,811 |
Due to the short-term nature of trade and other payables, its book value is not considered to differ from its fair value. For other non-current liabilities, fair values do not significantly differ from book values.
| 51 |
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation)
For the six-month period ended June 30, 2026, presented on comparative basis.
(In millions of Argentine Pesos (“$”))
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 June 30, 2026 and December 31, 2025:
| As of June 30, 2026 | Level 1 | Level 2 | Level 3 | Total | ||||
| Assets | ||||||||
| Financial assets at fair value through profit and loss |
||||||||
| Government securities | 392,795 | - | - | 392,795 | ||||
| Corporate bonds | 23,440 | - | - | 23,440 | ||||
| Mutual funds | 25,351 | - | - | 25,351 | ||||
| Shares | 9,734 | - | 46,091 | 55,825 | ||||
| Cash and cash equivalents | ||||||||
| Mutual funds | 580,616 | - | - | 580,616 | ||||
| Other receivables | ||||||||
| Guarantee deposits | 22,938 | - | - | 22,938 | ||||
| Total assets | 1,054,874 | - | 46,091 | 1,100,965 | ||||
| Derivatives | - | 79,566 | - | 79,566 | ||||
| Total liabilities | - | 79,566 | - | 79,566 | ||||
| As of December 31, 2025 | Level 1 | Level 2 | Level 3 | Total | ||||
| Assets | ||||||||
| Financial assets at fair value through profit and loss |
||||||||
| Government securities | 448,832 | - | - | 448,832 | ||||
| Corporate bonds | 68,219 | - | - | 68,219 | ||||
| Mutual funds | 12,023 | - | - | 12,023 | ||||
| Shares | 7,066 | - | 45,251 | 52,317 | ||||
| Cash and cash equivalents | ||||||||
| Mutual funds | 566,946 | - | - | 566,946 | ||||
| Derivatives | - | 75,562 | - | 75,562 | ||||
| Other receivables | ||||||||
| Guarantee deposits | 205,161 | - | - | 205,161 | ||||
| Total assets | 1,308,247 | 75,562 | 45,251 | 1,429,060 |
| 52 |
Free translation from the original prepared in Spanish for publication in Argentina |
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation)
For the six-month period ended June 30, 2026, presented on comparative basis.
(In millions of Argentine Pesos (“$”))
NOTE 12: (Continuation)
The techniques used for the measurement of assets and liabilities at fair value through profit and loss, classified as Level 2 and 3, are detailed below:
| - | Derivative Financial Instruments: calculated from variations between market prices at the closing date of the period, and the amount at the time of the contract. |
| - | Shares: it was mainly determined using the income-based approach through the “Indirect Cash Flow” method, that is, the net present value of expected future cash flows, mainly through the collection of dividends taking into consideration the 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-May 2027 period, thereby ensuring stable cash flows.
As of June 30, 2026, the fair value of forward crude oil sale contracts designated as hedges amounts to a $ 81,694 million (US$ 63 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 July 2026-May 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 $ 116,713 (US$ 83 million) loss during the January - June 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.
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation)
For the six-month period ended June 30, 2026, presented on comparative basis.
(In millions of Argentine Pesos (“$”))
NOTE 13: EQUITY COMPONENTS
13.1 Share Capital
As of June 30, 2026, the capital stock amounts to $ 1,344 million, including $ 4 million of treasury shares.
To comply with the provisions established by the CNV, the breakdown of the translation differences originated in the share capital and capital adjustment accounts is detailed below:
| 06.30.2026 | |||
| Share capital | Share capital adjustment | ||
| At the beginning of the year | 51,216 | 267,965 | |
| Variation of the period | 228 | 1,180 | |
| At the end of the period | 51,444 | 269,145 | |
| 06.30.2025 | |||
| Share capital | Share capital adjustment | ||
| At the beginning of the year | 35,932 | 187,995 | |
| Variation of the period | 6,252 | 32,710 | |
| At the end of the period | 42,184 | 220,705 | |
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.
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation)
For the six-month period ended June 30, 2026, presented on comparative basis.
(In millions of Argentine Pesos (“$”))
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 June 30, 2026 and 2025, the Company does not hold any significant potential dilutive shares, therefore there are no differences with the basic earnings per share.
| 06.30.2026 | 06.30.2025 | |||
| Earning attributable to equity holders of the Company | 544,744 | 220,570 | ||
| Weighted average amount of outstanding shares | 1,351 | 1,360 | ||
| Basic and diluted earnings per share | 403.22 | 162.18 |
13.3 Distribution of profits
Dividends distributed to individuals, undivided estates or foreign beneficiaries derived from profits generated during fiscal years beginning on or after January 1, 2018 are subject to a 7% withholding tax. The distribution of dividends is made based on the Company’s Stand-Alone Financial Statements.
The Company may pay and distribute dividends and any other type of profits to its shareholders, except if: (i) there is an event of breach; or (ii) the Company is not in a position to incur debt under the indentures governing the Class 21, Class 23, Additional Class 23, Class 26 and Additional 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.
13.4 Capital reduction
On April 7, 2026, the Company’s Ordinary and Extraordinary General Shareholders’ Meeting resolved to reduce the share capital by the sum of $ 19,920,279 and, consequently, to cancel the treasury shares held by the Company and its subsidiaries as of the business day immediately preceding the Meeting, which amounted to 19,920,279 shares. This reduction was registered with the Public Registry on May 29, 2026.
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation)
For the six-month period ended June 30, 2026, presented on comparative basis.
(In millions of Argentine Pesos (“$”))
NOTE 14: STATEMENT OF CASH FLOWS’ COMPLEMENTARY INFORMATION
14.1 Adjustments to reconcile net profit to cash flows from operating activities
| Note | 06.30.2026 | 06.30.2025 | |||
| Income tax | 10.6 | (1,702) | 115,125 | ||
| Accrued interest | 106,094 | 72,546 | |||
| Depreciations and amortizations | 9, 10.1 and 10.2 | 373,263 | 200,769 | ||
| Share of profit from associates and joint ventures | 5.1.2 | (216,737) | (91,347) | ||
| Results for property, plant and equipment sale and derecognition | 10.4 | 2,973 | (5) | ||
| Results for other assets sale and derecognition | 10.4 | (1,449) | (775) | ||
| Results for intangible assets sales | 10.4 | - | (2,048) | ||
| Impairment of intangible assets and inventories | 1,812 | 776 | |||
| (Recovery of impairment) Impairment of financial assets | (3,214) | 2,508 | |||
| Result from present value measurement | 10.5 | 10,529 | (1,594) | ||
| Changes in the fair value of financial instruments | (14,180) | (98,541) | |||
| Exchange differences, net | (9,202) | (31,240) | |||
| Result from repurchase of CB | 10.5 | (354) | (2,043) | ||
| Costs of concessions agreements completion | 10.4 | 1,096 | 582 | ||
| Provision (Recovery) for contingecies, net | 10.4 | 11,645 | (2,534) | ||
| Accrual of defined benefit plans | 9 and 10.2 | 5,479 | 6,840 | ||
| Compensation agreements | 10.2 | 3,228 | 574 | ||
| Earned dividends | 10.4 | (3,424) | (4) | ||
| Other | (1,333) | 717 | |||
| Adjustments to reconcile net profit to cash flows from operating activities | 264,524 | 170,306 |
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation)
For the six-month period ended June 30, 2026, presented on comparative basis.
(In millions of Argentine Pesos (“$”))
NOTE 14: (Continuation)
14.2 Changes in operating assets and liabilities
| 06.30.2026 | 06.30.2025 | |||
| Increase in trade receivables and other receivables | (641,995) | (310,052) | ||
| Increase in inventories | (61,518) | (23,792) | ||
| Increase in trade and other payables | 28,229 | 66,873 | ||
| Decrease in salaries and social security payables | (13,496) | (11,709) | ||
| Defined benefit plans payments | (2,472) | (1,314) | ||
| Increase in tax liabilities | 55,162 | 13,739 | ||
| Decrease in provisions | (5,191) | (4,245) | ||
| Income tax payment | (70,618) | - | ||
| (Payments) Collections for derivatives, net | (121,759) | 2,572 | ||
| Changes in operating assets and liabilities | (833,658) | (267,928) |
14.3 Significant non-cash transactions
| 06.30.2026 | 06.30.2025 | |||
| Acquisition of property, plant and equipment through an increase in trade payables | (107,781) | (169,933) | ||
| Borrowing costs capitalized in property, plant and equipment | (10,109) | (1,617) | ||
| Decrease in other receivables through an increase in financial assets at fair value through profit or loss | 161,033 | - | ||
| Collection of dividends from joint ventures through financial assets | - | 53,026 | ||
| Decrease in provisions through an increase in other payables | (44,313) | - | ||
| Collection of other receivables through financial assets at fair value through profit and loss | - | 10,463 | ||
| Payment of borrowings through financial assets at amortized cost transfer | - | (10,330) | ||
| Collection of loans granted through intangible assets | 490 | 1,761 | ||
| Compensation of income tax throught a decrease in tax credits | (60,050) | - |
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation)
For the six-month period ended June 30, 2026, presented on comparative basis.
(In millions of Argentine Pesos (“$”))
NOTE 15: CONTINGENT LIABILITIES AND ASSETS
During the six-month period ended June 30, 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 Labor claim – “Compensating Fund” defined benefit plan
In one of the lawsuits filed against the Company concerning the application of an index (the CPI) to update the plan benefits, the National Chamber of Appeals in Labor Matters (“CNAT”) upheld the first-instance judgment dismissing the claim; this decision was appealed by the plaintiff before the Superior Court of Justice of the City of Buenos Aires (“TSJCABA”) and before the CSJN.
Moreover, in connection with the claims for alleged plan underfunding, the CSJN settled the jurisdictional dispute and ruled that the unconstitutionality appeal filed by the Company against the judgment of the Chamber of Appeals in Commercial Matters must be heard and decided by the TSJCABA.
15.2 Environmental claims
The CSJN dismissed the complaint in the lawsuit brought by the Association of Land Owners of Patagonia (“ASSUPA”), which mainly sought an order compelling the defendants to remediate the alleged environmental damage caused by hydrocarbon activities in the Neuquina Basin.
15.2 Administrative claims
In the lawsuits brought by CTLL (currently Pampa) against the Argentine Government for non-compliance regarding the renewal of, and the recognition of costs associated with, the gas supply contracts, on March 10, 2026 and March 17, 2026, the Federal Court of Appeals in Administrative Litigation Matters resolved to grant the extraordinary appeals as to the existence of a federal question and to deny them as to the alleged arbitrariness. The Company filed direct appeals against such denial before the CSJN.
In the declaratory action initiated by the Company before the CSJN, following the declaration of termination of the concession over the Veta Escondida block by the Province of Neuquén, the Province of Neuquén and the Company executed a settlement agreement on March 4, 2026, approved by Provincial Executive Order No. 605/26, putting an end to the dispute. Upon the parties’ request, on June 10, 2026 the CSJN declared the judicial proceeding terminated.
15.3 Civil and Commercial Claims
In the arbitration proceeding initiated by EcuadorTLC S.A. (currently PB18), in its capacity as assignee of the Ecuadorian company Petromanabí S.A., against the Republic of Ecuador, the Arbitration Court’s award is still pending.
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation)
For the six-month period ended June 30, 2026, presented on comparative basis.
(In millions of Argentine Pesos (“$”))
NOTE 15: (Continuation)
In 2025, the Company filed claims against ENARSA for breach of the agreements executed under the Gas.Ar Plan, seeking payment of certain overdue gas supply invoices in the amount of $ 53,753 million, plus interest. One of the claims is at the evidentiary stage, while the other is at the initial stage.
NOTE 16: RELATED PARTIES´ BALANCES AND TRANSACTIONS
16.1 Balances with related parties
| As of June 30, 2026 | Trade receivables | Other receivables | Trade payables | |||
| Current | Current | Current | ||||
| Associates and joint ventures | ||||||
| CTB | 344 | 16 | - | |||
| TGS | 4,620 | 105,077 | 29,069 | |||
| Transener | 3 | 235 | 54 | |||
| Other | - | 16 | - | |||
| Other related parties | ||||||
| SACDE | 5 | 252 | 42,586 | |||
| 4,972 | 105,596 | 71,709 |
| As of December 31, 2025 | Trade receivables | Other receivables | Trade payables | |||
| Current | Current | Current | ||||
| Associates and joint ventures | ||||||
| CTB | 235 | 15 | - | |||
| TGS | 11,207 | 6,326 | 23,305 | |||
| Transener | 43 | 157 | 439 | |||
| Other related parties | ||||||
| SACDE | 92 | 161 | 18,497 | |||
| 11,577 | 6,659 | 42,241 |
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation)
For the six-month period ended June 30, 2026, presented on comparative basis.
(In millions of Argentine Pesos (“$”))
NOTE 16: (Continuation)
16.2 Operations with related parties
| Operations for the six-month period | Sales of goods and services (1) |
Purchases of goods and services (2) | Fees and compensation for services (3) | Other operating income (expenses), net (4) | ||||||||||||
| 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | |||||||||
| Associates and joint ventures | ||||||||||||||||
| CTB | 1,156 | 891 | - | - | - | - | - | - | ||||||||
| TGS | 36,769 | 27,203 | (84,147) | (53,026) | - | - | - | - | ||||||||
| Transener | - | - | (180) | (26) | - | - | 380 | 309 | ||||||||
| Other related parties | ||||||||||||||||
| Fundación Pampa | - | - | - | - | - | - | (3,107) | (1,082) | ||||||||
| SACDE | - | - | (130,265) | (155,922) | (1,760) | (1,551) | 318 | 265 | ||||||||
| Salaverri, Dellatorre, Burgio & Wetzler | - | - | - | - | (226) | - | (214) | - | - | |||||||
| Other | - | - | (1,254) | - | - | - | - | - | - | |||||||
| 37,925 | 28,094 | (215,846) | (208,974) | (1,986) | (1,765) | (2,409) | (508) | |||||||||
| (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 $ 85,581 million and $ 53,079 million and infrastructure works contracted to SACDE charged in property, plant and equipment for $ 130,265 million and $ 155,895 million, of which $ 27,223 million and $ 42,081 million, correspond to fees and general expenses calculated on the costs incurred by SACDE and/or Pampa to carry the works out for the six-month periods ended June 30, 2026 and 2025, respectively. |
| (3) | Disclosed within administrative expenses. |
| (4) | Corresponds mainly to donations expenses and operating leases income. |
| Operations for the six-month period | Financial income (1) | Dividends collection | ||||||
| 2026 | 2025 | 2026 | 2025 | |||||
| Associates and joint ventures | ||||||||
| CIESA | - | - | - | 53,026 | ||||
| TGS | 156 | 428 | - | - | ||||
| Other related parties | ||||||||
| Oldelval | - | - | 2,509 | - | ||||
| Other | - | - | - | 4 | ||||
| 156 | 428 | 2,509 | 53,030 | |||||
| (1) | Correspond mainly to accrued interest on loans granted. |
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation)
For the six-month period ended June 30, 2026, presented on comparative basis.
(In millions of Argentine Pesos (“$”))
NOTE 17: ASSETS AND LIABILITIES IN CURRENCIES OTHER THAN PESOS (1)
| Type | Amount in currencies other than pesos | Exchange rate (2) | Total 06.30.2026 |
Total 12.31.2025 | |||||
| ASSETS | |||||||||
| NON-CURRENT ASSETS | |||||||||
| Other receivables | US$ | 54.24 | 1,482.00 | 80,382 | 61,210 | ||||
| Total non-current assets | 80,382 | 61,210 | |||||||
| CURRENT ASSETS | |||||||||
| Financial assets at fair value through profit and loss | US$ | 298.01 | 1,482.00 | 441,652 | 525,329 | ||||
| Derivatives | US$ | - | - | - | 75,555 | ||||
| Trade and other receivables | US$ | 431.40 | 1,482.00 | 639,330 | 470,777 | ||||
| CLP | 8,905.05 | 1.61 | 14,309 | 11,073 | |||||
| U$ | 0.03 | 36.89 | 1 | 43 | |||||
| BOB | 0.19 | 214.64 | 41 | - | |||||
| Cash and cash equivalents | US$ | 935.49 | 1,482.00 | 1,386,389 | 981,029 | ||||
| CLP | 309.32 | 1.61 | 497 | 31 | |||||
| EUR | 0.01 | 1,695.28 | 12 | 12 | |||||
| BOB | 0.01 | 214.64 | 1 | - | |||||
| Total current assets | 2,482,232 | 2,063,849 | |||||||
| Total assets | 2,562,614 | 2,125,059 | |||||||
| LIABILITIES | |||||||||
| NON-CURRENT LIABILITIES | |||||||||
| Provisions | US$ | 46.56 | 1,482.00 | 69,000 | 111,634 | ||||
| Borrowings | US$ | 2,575.51 | 1,482.00 | 3,816,908 | 2,683,747 | ||||
| Trade and other payables | US$ | 65.17 | 1,482.00 | 96,583 | 124,234 | ||||
| Total non-current liabilities | 3,982,491 | 2,919,615 | |||||||
| CURRENT LIABILITIES | |||||||||
| Provisions | US$ | 8.27 | 1,482.00 | 12,253 | 12,140 | ||||
| Tax liabilities | US$ | 0.16 | 1,482.00 | 238 | 249 | ||||
| CLP | 900.26 | 1.61 | 1,447 | 381 | |||||
| U$ | 6.59 | 36.89 | 243 | 1,472 | |||||
| Salaries and social security payable | CLP | 2.42 | 1.61 | 4 | 4 | ||||
| Derivatives | US$ | 53.69 | 1,482.00 | 79,566 | - | ||||
| Borrowings | US$ | 25.02 | 1,482.00 | 37,087 | 69,942 | ||||
| Trade and other payables | US$ | 267.03 | 1,482.00 | 395,735 | 426,963 | ||||
| EUR | 3.38 | 1,695.28 | 5,730 | 6,454 | |||||
| CLP | 4.44 | 1.61 | 7 | 12 | |||||
| SEK | 0.04 | 217.98 | 6 | - | |||||
| BOB | 0.05 | 214.64 | 11 | 5 | |||||
| U$ | 0.20 | 36.89 | 7 | 7 | |||||
| Total current liabilities | 532,334 | 517,629 | |||||||
| Total liabilities | 4,514,825 | 3,437,244 | |||||||
| Net Position Liability | (1,952,211) | (1,312,185) |
| (1) | Information presented to comply with CNV Rules. |
| (2) | Exchange rate in force on June 30, 2026 according to the BNA for U.S. dollars (US$), euros (EUR), chilean pesos (CLP), swedish kronor (SEK), bolivian pesos (BOB) and uruguayan pesos (U$). |
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation)
For the six-month period ended June 30, 2026, presented on comparative basis.
(In millions of Argentine Pesos (“$”))
NOTE 18: INVESTMENT COMMITMENTS
Development projects in Vaca Muerta
Rincón de Aranda Development – RDA Project
Within the framework of the expansion of projects eligible for the RIGI established by PEN Executive Order No. 105/26 (see Note 2.7.2.3), on March 9, 2026, the Company, through its SPV Pampa Energía S.A. – Sucursal Dedicada Proyecto RDA, submitted an application to opt into the RIGI as a long-term strategic export project, associated with the development of new shale oil wells and the construction of related infrastructure in the Rincón de Aranda block (the “RDA Project”). MECON Resolution No. 1,025/26 approved this application, effective as from June 25, 2026.
The RDA Project consists of the exploitation of the Vaca Muerta formation in the Rincón de Aranda block, which covers a surface area of 237 km². The development contemplates the drilling and completion of a total of 259 horizontal wells with laterals of up to 3,000 meters, distributed across three productive levels. In parallel, a treatment and conditioning plant will be built with a capacity of 45,000 bbl/day of crude oil and 800,000 m³/day of gas, together with the oil and gas pipelines required for the evacuation of production and the final disposal of frac water.
It is worth highlighting that, in line with PEN Executive Order No. 105/26, existing wells are excluded from the scope of the approved RIGI, which only covers the new wells to be drilled by the SPV after the opt-in application submission.
The total estimated investment for the RDA Project amounts to approximately US$ 4,500 million, to be executed through 2041 in accordance with the approved investment plan.
Proyecto UREA
On April 21, 2026, the Company, through its subsidiary FEPASAU, submitted an application to opt into the RIGI for the construction, operation and management of a 6,000-ton/day granulated urea production complex in Bahía Blanca, which will additionally produce ammonia and other fertilizers (the “UREA Project”). The UREA Project will be supplied with gas from Vaca Muerta, aims to produce 2.1 million tons/year of urea as from 2030, and further includes the construction of a desalination plant to supply water to the complex, storage silos and logistics infrastructure at the port of Bahía Blanca, including facilities for loading trucks and vessels for the export market, with a total estimated investment of US$ 2,700 million. The Project will take approximately 41 months to complete and will be undertaken by SACDE and Tecnimont, which will be in charge of the construction, and the engineering and procurement management, respectively, pursuant to the EPC Contract (an acronym for “Engineering, Procurement and Construction”) executed on July 17, 2026.
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation)
For the six-month period ended June 30, 2026, presented on comparative basis.
(In millions of Argentine Pesos (“$”))
NOTE 18: (Continuation)
Likewise, on June 10, 2026, the Company, through its subsidiary FEPASAU, submitted an application to opt into the Strategic Investment Regime of the Province of Buenos Aires for the UREA Project.
As of the date of these Consolidated Condensed Interim Financial Statements, both applications remain pending approval by the relevant authorities.
It is worth highlighting that on July 17, 2026, the Company’s Board of Directors approved the final investment decision for the Project, marking the Company’s entry into the fertilizer business, fertilizers being a commodity essential to agricultural production and global food security. Likewise, on that same date, the Company’s Board of Directors approved the granting of a guarantee in favor of FEPASAU to secure all of FEPASAU’s payment obligations under the EPC Contract.
The Project’s strategic location enables direct connection with the gas pipelines coming from Vaca Muerta, with one of the country’s main export ports, and with the Company’s thermal power plants and wind farms. Natural gas and electricity, inputs accounting for approximately 70% of the cost structure of urea production, will be supplied mainly by the Company. This reinforces the competitive advantages of the Company’s vertical integration and contributes to the Project’s operating efficiency and profitability.
NOTE 19: INCIDENT AT HINISA
During the period ended June 30, 2026, HINISA recorded $ 866 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 June 30, 2026, has received advance payments of $ 4,688 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.
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation)
For the six-month period ended June 30, 2026, presented on comparative basis.
(In millions of Argentine Pesos (“$”))
NOTE 20: TERMINATION OF HYDROELECTRIC CONCESSIONS
On April 15, 2026, the Province of Mendoza sent a note to HINISA, highlighting that the company has acted diligently in restoring the power plants following the incident caused by the January 11, 2025 weather event, and requesting, as part of the preparation of the tender specifications, further provisions regarding the receivables arising from the incident insurance coverage.
On April 22, 2026, HINISA’s Board of Directors approved the execution of the agreement to assign to Hidroelectricidad Mendocina S.A. (“HEMSA”) (future owner of the assets pursuant to Law No. 9,486 of the Province of Mendoza) HINISA’s contractual position under its insurance policies as regards actual damages, excluding the amounts necessary to cover the works performed and currently under execution by HINISA. On July 16, 2026, the Province of Mendoza served notice of the issuance of Executive Order No. 1,277/26, appointing HEMSA as continuator of the contractual position under these policies. As of the date of issuance of these Consolidated Condensed Interim Financial Statements, this document has not been formalized.
On June 29, 2026, the Province of Mendoza required HINISA to submit various technical, operational, labor and economic information and documentation related to the end of the concession’s transition period, which were timely submitted on July 8 and 22, 2026.
Furthermore, within the framework of the actions for the assets’ reversion, on June 30, 2026, HINISA and HEMSA jointly filed with the SE and CAMMESA the request for the change of ownership to HEMSA of the WEM Agent status corresponding to the Nihuil I, II and III power plants.
Likewise, together with the Ministry of Energy and Environment of the Province of Mendoza, all the necessary measures were implemented to ensure the orderly reversion of the assets and the subsequent safe operation of the plant and, on July 31, 2026, the Assets Reversion Certificate was executed, thus concluding the reversion process.
On July 28, 2026, PEN Executive Order No. 667/26 was issued, approving the National and International Open Call for Tenders, to be jointly conducted with the Province of Mendoza, for the granting of the new hydroelectric generation concession of the Los Nihuiles Complex. In turn, PEN Executive Order No. 1,436/26 of the Province of Mendoza approved the tender specifications, which were submitted to the Federal Government for review under the upcoming call for tenders. The call contemplates the sale of 100% of HEMSA’s shareholding, and HEMSA will assume the operation of the assets until December 31, 2026 or until the new concessionaire takes over.
On the other hand, through SE Resolution No. 145/26, published on June 30, 2026, the transitional operation of the Diamante hydroelectric complex was extended until December 15, 2026, subject to the execution of a new opt-in letter. However, HIDISA did not execute such opt-in letter; therefore, it must continue operating the hydroelectric complex for at least 90 calendar days so that the Federal Government may take the necessary actions to implement the reversion of the assets under concession.
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NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (Continuation)
For the six-month period ended June 30, 2026, presented on comparative basis.
(In millions of Argentine Pesos (“$”))
NOTE 21: DOCUMENTATION SAFEKEEPING
In compliance with CNV General Resolution No. 629/14, the Company, informs 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.
NOTE 22: SUBSEQUENT EVENTS
Synthetic rubber production closure process
On July 22, 2026, the Company announced the beginning of the process to close its synthetic rubber production at the PGSM complex. This decision responds to the sharp decline in the local synthetic rubber market, affected by the lower activity in the tire industry, which has rendered the continuity of the business unviable. It is also part of a capital allocation strategy aimed at concentrating investments in those businesses where the Company identifies greater opportunities for growth, value creation and positive impact on the country.
It is worth highlighting that the process is limited exclusively to the synthetic rubber operation, whereas the rest of PGSM’s operations will continue running normally; consequently, it would affect approximately 130 out of 500 employees working at the complex. However, as part of the support measures, the Company will consider offering employment opportunities in other projects and at affiliated companies.
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