Expenses by Nature

12 Months Ended

Dec. 31, 2022

26.	EXPENSES BY NATURE

The Group presents the statement of comprehensive income by classifying expenses according to their function as part of the “Costs”, “Administrative expenses”, “Selling expenses” and “Exploration expenses” lines. The following additional information is disclosed as required, on the nature of the expenses and their relation to the function within the Group for the fiscal years ended December 31, 2022, 2021 and 2020:


	2022
	Production costs (2)		Administrative expenses		Selling expenses			Exploration expenses		Total
Salaries and social security taxes		781		222		116			11		1,130
Fees and compensation for services		46		194		32			1		273
Other personnel expenses		202		19		11			1		233
Taxes, charges and contributions		121		13		954	(1)		-		1,088
Royalties, easements and fees		1,026		-		2			3		1,031
Insurance		71		3		2			-		76
Rental of real estate and equipment		140		1		11			-		152	(3)
Survey expenses		-		-		-			18		18
Depreciation of property, plant and equipment		2,400		61		90			-		2,551
Amortization of intangible assets		29		14		-			-		43
Depreciation of right-of-use assets		202		-		12			-		214
Industrial inputs, consumable materials and supplies		454		2		10			-		466
Operation services and other service contracts		383		10		52			4		449	(3)
Preservation, repair and maintenance		1,206		25		44			1		1,276	(3)
Unproductive exploratory drillings		-		-		-			26		26
Transportation, products and charges		473		-		434			-		907	(3)
Provision for doubtful trade receivables		-		-		14			-		14
Publicity and advertising expenses		-		82		21			-		103
Fuel, gas, energy and miscellaneous		170		11		91			-		272	(3)

		7,704		657		1,896			65		10,322

(1)	Includes 251 corresponding to export withholdings and 567 corresponding to Turnover Tax.

(2)	The expense recognized in the consolidated statement of comprehensive income corresponding to research and development activities amounted to 27.

(3)	Includes 63 and 104 corresponding to short-term leases and to the lease charge related to the underlying asset performance and/or use, respectively.


	2021
	Production costs (2)		Administrative expenses		Selling expenses			Exploration expenses		Total
Salaries and social security taxes		537		148		84			4		773	(4)
Fees and compensation for services		47		136		29			-		212
Other personnel expenses		140		12		6			1		159
Taxes, charges and contributions		118		7		757	(1)		1		883
Royalties, easements and fees		831		-		1			2		834
Insurance		74		5		2			-		81
Rental of real estate and equipment		125		-		12			-		137	(3)
Survey expenses		-		-		-			3		3
Depreciation of property, plant and equipment		2,670		60		86			-		2,816
Amortization of intangible assets		38		12		1			-		51
Depreciation of right-of-use assets		190		-		11			-		201
Industrial inputs, consumable materials and supplies		370		4		9			-		383
Operation services and other service contracts		388		8		51			6		453	(3)
Preservation, repair and maintenance		905		20		23			1		949	(3)
Unproductive exploratory drillings		-		-		-			10		10
Transportation, products and charges		359		-		309			-		668	(3)
Provision for doubtful trade receivables		-		-		30			-		30
Publicity and advertising expenses		-		43		18			-		61
Fuel, gas, energy and miscellaneous		88		15		78			2		183	(3)

		6,880		470		1,507			30		8,887

(1)	Includes 206 corresponding to export withholdings and 450 corresponding to Turnover Tax (see Note 2.d)).

(2)	The expense recognized in the consolidated statement of comprehensive income corresponding to research and development activities amounted to 19.

(3)	Includes 40 and 58 corresponding to short-term leases and to the lease charge related to the underlying asset performance and/or use, respectively.

(4)	Includes 18 corresponding to Productive Recovery Program II (“REPRO II”) in benefit of OPESSA. See Note 36.


	2020
	Production costs (2)		Administrative expenses		Selling expenses			Exploration expenses		Total
Salaries and social security taxes		563		178		98			11		850	(4)
Fees and compensation for services		37		118		22			-		177
Other personnel expenses		120		11		5			1		137
Taxes, charges and contributions		87		5		530	(1)		1		623
Royalties, easements and fees		610		-		1			1		612
Insurance		74		5		2			-		81
Rental of real estate and equipment		95		-		29			-		124	(3)
Survey expenses		-		-		-			7		7
Depreciation of property, plant and equipment		2,319		58		83			-		2,460
Amortization of intangible assets		40		7		1			-		48
Depreciation of right-of-use assets		241		-		13			-		254
Industrial inputs, consumable materials and supplies		312		2		6			-		320
Operation services and other service contracts		501		8		46			8		563	(3)
Preservation, repair and maintenance		689		17		21			1		728	(3)
Unproductive exploratory drillings		-		-		-			49		49
Transportation, products and charges		299		-		237			-		536	(3)
Provision for doubtful trade receivables		-		-		170			-		170
Publicity and advertising expenses		-		31		9			-		40
Fuel, gas, energy and miscellaneous		196		27		51			1		275	(3)

		6,183		467		1,324			80		8,054

(1)	Includes 134 corresponding to export withholdings and 322 corresponding to Turnover Tax (see Note 2.d)).

(2)	The expense recognized in the consolidated statement of comprehensive income corresponding to research and development activities amounted to 22.

(3)	Includes 59 and 76 corresponding to short-term leases and to the lease charge related to the underlying asset performance and/or use, respectively.

(4)	Includes 18 corresponding to the Work and Production Assistance Program received in benefit of AESA and OPESSA. See Note 36.