Business Segment Information

12 Months Ended

Dec. 31, 2024

5.	BUSINESS SEGMENT INFORMATION

The different business segments in which the Group’s organization is structured consider the different activities from which the Group can obtain revenues and incur expenses. Such organizational structure is based on the way in which the chief decision maker analyzes the main operating and financial magnitudes for making decisions about resource allocation and performance assessment, also considering the business strategy of the Group.

Business segment information is presented consistently with the manner of reporting the information used by the chief decision maker to allocate resources and assess business segment performance.

The business segment structure is organized as follows:

•

Upstream

The Upstream business segment performs all activities related to the exploration and exploitation of hydrocarbon fields and production of crude oil and natural gas.

Its revenues are mainly derived from: (i) the sale of the crude oil produced to the Downstream business segment; and (ii) the sale of the natural gas produced and the natural gas retained in plant to the Gas and Power business segment.

It incurs all costs related to the activities mentioned above.

On July 1, 2024, certain assets related to the production of frac sand for well drilling/fracking purposes, which were formerly included in Upstream business segment, were assigned to Central Administration and Others. In addition, the comparative information for fiscal years ended December 31, 2023 and 2022 has been restated.

•

Downstream

The Downstream business segment performs activities related to: (i) crude oil refining and the production of petrochemical products; (ii) logistics related to the transportation of crude oil to the refineries and the transportation and distribution of refined and petrochemical products to be marketed at the different sales channels; (iii) commercialization of refined and petrochemical products obtained from such processes; (iv) commercialization of crude oil; and (v) commercialization of specialties for the agribusiness industry and of grains and their

by-products.

Its revenues are mainly derived from the sale of crude oil, refined and petrochemical products, specialties for the agribusiness industry and grains and their

by-products.

These operations are performed through the businesses of B2C (Retail), B2B (Industries, Transportation, Aviation, Agro, Lubricants and Specialties), LPG, Chemicals, International Trade and Transportation and Sales to Companies.

It incurs all costs related to the activities mentioned above, including the purchase of: (i) crude oil from the Upstream business segment and third parties; (ii) gasoline and natural gas to be consumed in the refinery and petrochemical industrial complexes from the Gas and Power business segment; and (iii) propane and butane to be commercialized from the Gas and Power business segment.

•

Gas and Power

The Gas and Power business segment performs activities related to: (i) natural gas transportation to third parties and the Downstream business segment and its commercialization; (ii) commercial and technical operation of the LNG regasification terminal in Escobar by hiring a regasification vessel; (iii) transportation, conditioning and processing of natural gas retained in plant for the separation and fractionation of gasoline, propane and butane; (iv) distribution of natural gas through our subsidiary Metrogas; and (v) the storage of the natural gas produced. Also, through our investments in associates and joint ventures, the Gas and Power business segment undertakes activities related to: (i) separation of natural gas liquids and their fractionation, storage and transportation for the production of ethane, propane, butane and gasoline; (ii) generation of conventional thermal electric power and renewable energy; and (iii) production, storage, distribution and sale of fertilizers.

Its revenues are mainly derived from the commercialization of natural gas as producers to third parties and the Downstream business segment, the distribution of natural gas through our subsidiary Metrogas, the sale of gasoline, propane and butane to the Downstream business segment and the provision of LNG regasification services.

It incurs all costs related to the activities mentioned above, including the purchase of natural gas and natural gas retained in plant from the Upstream business segment.

•

Central Administration and Others

It covers other activities performed by the Group not falling under the business segments mentioned above and which are not reporting business segments, mainly comprising corporate administrative expenses and assets and construction activities.

Sales between business segments were made at internal transfer prices established by the Group, which approximately reflect domestic market prices.

Operating profit or loss and assets of each business segment have been determined after consolidation adjustments.


	Upstream			Downstream		Gas and Power		Central Administration and Others		Consolidation adjustments (1)		Total
For the year ended December 31, 2024
Revenues		50			15,813		2,618		812		-		19,293
Revenues from intersegment sales		8,225			77		397		1,072		(9,771)		-

Revenues		8,275			15,890		3,015		1,884		(9,771)		19,293


Operating profit or loss		515	(3)		1,306		146		(371)		(116)		1,480
Income from equity interests in associates and joint ventures		-			45		352		(1)		-		396

Net financial results													(695)
Net profit before income tax													1,181
Income tax													1,212
Net profit													2,393

Acquisitions of property, plant and equipment		4,177			1,151		142		130		-		5,600
Acquisitions of right-of-use assets		211			181		24		28		-		444
Assets		12,795			10,428		3,500		2,896		(228)		29,391

Other income statement items
Depreciation of property, plant and equipment (2)		1,809			492		54		91		-		2,446
Amortization of intangible assets		-			29		13		1		-		43
Depreciation of right-of-use assets		154			84		31		1		-		270
Impairment of property, plant and equipment and inventories write-down (4)		79			3		-		5		-		87

For the year ended December 31, 2023
Revenues		32			14,888		2,017		374		-		17,311
Revenues from intersegment sales		7,211			100		357		781		(8,449)		-

Revenues		7,243			14,988		2,374		1,155		(8,449)		17,311


Operating profit or loss		(1,915)	(3)		896		(3)		(282)		56		(1,248)
Income from equity interests in associates and joint ventures		-			10		84		-		-		94

Net financial results													897
Net loss before income tax													(257)
Income tax													(1,020)
Net loss													(1,277)

Acquisitions of property, plant and equipment		4,717			1,140		178		156		-		6,191
Acquisitions of right-of-use assets		363			19		22		-		-		404
Assets		10,869			9,916		2,282		2,086		(118)		25,035

Other income statement items
Depreciation of property, plant and equipment (2)		2,437			464		44		71		-		3,016
Amortization of intangible assets		-			30		7		-		-		37
Depreciation of right-of-use assets		131			71		19		-		(1)		220
Impairment of property, plant and equipment (4)		2,288			-		-		-		-		2,288


	Upstream			Downstream		Gas and Power		Central Administration and Others		Consolidation adjustments (1)		Total
For the year ended December 31, 2022
Revenues		51			16,016		2,304		386		-		18,757
Revenues from intersegment sales		7,134			109		391		779		(8,413)		-

Revenues		7,185			16,125		2,695		1,165		(8,413)		18,757


Operating profit or loss		1,306	(3)		1,523		90		(401)		(36)		2,482
Income from equity interests in associates and joint ventures		-			23		428		(5)		-		446

Net financial results													128
Net profit before income tax													3,056
Income tax													(822)
Net profit													2,234

Acquisitions of property, plant and equipment		3,378			837		78		166		-		4,459
Acquisitions of right-of-use assets		204			102		-		-		-		306
Assets		11,317			9,530		3,215		2,018		(168)		25,912

Other income statement items
Depreciation of property, plant and equipment (2)		1,935			477		48		91		-		2,551
Amortization of intangible assets		-			29		12		2		-		43
Depreciation of right-of-use assets		140			59		20		-		(5)		214
Impairment of property, plant and equipment (4)		123			-		-		-		-		123

(1)	Corresponds to the eliminations among the business segments of the Group.

(2)	Includes depreciation of charges for impairment of property, plant and equipment.

(3)	Includes (133), (21) and (26) of unproductive exploratory drillings as of December 31, 2024, 2023 and 2022, respectively.

(4)	See Notes 2.b.8), 2.c), 8, 11 and 12.

The distribution of revenue and

non-current

assets by geographic area is broken down in Notes 7, 8, 9

and

25.