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FINANCIAL ASSETS AND LIABILITIES

12 Months Ended

Dec. 31, 2022

NOTE 12: FINANCIAL ASSETS AND LIABILITIES

12.1 Financial assets at amortized cost


	12.31.2022	12.31.2021
Non-current
Term deposit	101	100
Notes receivable	1	5
Total non-current	102	105
Current
Notes receivable	8	5
Total current	8	5

12.2 Financial assets at fair value through profit and loss


	12.31.2022	12.31.2021
Non-current
Shares	27	29
Total non-current	27	29

Current
Government securities	279	278
Corporate bonds	116	19
Shares	160	120
Mutual funds	31	41
Total current	586	458

12.3 Trade and other receivables

Note 12.31.2022 12.31.2021

Non-Current

Related parties 16 17 23

Tax credits 2 9

Prepaid expenses - 1

Other 1 1

Other receivables 20 34

Total non-current 20 34

12.31.2022 12.31.2021

Current

Receivables from MAT sales 21 24

CAMMESA 165 89

Receivables from oiland gas sales 55 69

Receivables from petrochemicals sales 62 71

Related parties 16 5 7

Other 3 5

Impairment of financial assets (6) (9)

Trade receivables, net 305 256

Current

Related parties 16 7 8

Tax credits 14 5

Receivables for complementary activities - 2

Prepaid expenses 14 10

Financial credit - 10

Guarantee deposits 27 30

Insurance to be recovered - 1

Expenses to be recovered 15 -

Receivables for acquisition of subsidiary 7 -

Receivables for sale of subsidiary and associates 4 41

Receivables for financial instruments sale 1 6

Argentine Natural Gas Production Promotion Plan 32 14

Receivables for arbitration award 15.6 37 -

Other 7 14

Other receivables, net 165 141

Total current 470 397

Due to the short-term nature of trade and other receivables, its book value is not considered to differ from its fair value. For non-current trade and other receivables, fair values do not significantly differ from book values.

The movements in the impairment of trade receivables were as follows:

12.31.2022 12.31.2021 12.31.2020

At the beginning of the year 9 16 68

Impairment ⁽¹⁾ 1 1 63

Utilization (1) - (7)

Reversal of unused amounts - (6) (3)

Gain on monetary position, net (3) (2) (2)

Gain on monetary position, net - - (28)

Reclasified to assets classified as held for sale - - (75)

At the end of the year 6 9 16

⁽¹⁾ It includes US$ 26 million corresponding to discontinued operations for fiscal year 2020. As of December 31, 2020, it includes US$ 13 million corresponding to the receivable impairment related to the exchange difference between the price of gas purchased by distributors and the price of gas recognised in distributors´s final tariffs between April 2018 and March 2019 to be assumed by the Federal Government in accordance to PEN Executive Order No. 1,053/18 (see Note 15).

The movements in the impairment of other financial assets were as follows:

12.31.2022 12.31.2021 12.31.2020

At the beginning of the year - - 6

Impairment - - 2

Reversal of unused amounts - - (7)

Reclasified to assets classified as held for sale - - (1)

At the end of the year - - -

12.4   Cash and cash equivalents

Schedule of cash and cash equivalents

12.31.2022 12.31.2021

Banks 11 26

Mutual funds 95 84

Total 106 110

12.5   Borrowings

Schedule of borrowings

12.31.2022 12.31.2021

Non-Current

Financial borrowings 108 58

Corporate bonds 1,232 1,301

Total non-current 1,340 1,359

Current

Bank overdrafts 59 11

Financial borrowings 51 29

Corporate bonds 163 39

Total current 273 79

Total 1,613 1,438

As of December 31, 2022 and 2021, the fair values of the Company’s Corporate Bonds amount approximately to US$ 1,435 million and US$ 1,233 million, respectively. Such values were calculated on the basis of the determined market price of the Company’s CB at the end of each year (fair value level 1).

The carrying amounts of short-term borrowings and bank overdrafts 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 date of issuance of these Consolidated Financial Statements, the Company is in compliance with the covenants established in its indebtedness contracts.

12.5.1 Movements in borrowings:

Schedule of changes in borrowings

12.31.2022 12.31.2021 12.31.2020

At the beginning of the year 1,438 1,614 1,947

Proceeds from borrowings 308 188 353

Payment of borrowings (143) (336) (300)

Accrued interest 172 137 176

Payment of interests (162) (140) (201)

Repurchase and redemption of corporate bonds (28) (3) (155)

Result from exchange of corporate bonds 14 - -

Result from repurchase of corporate bonds (6) - (43)

Increases for incorporation ⁽¹⁾ 89 - -

Cancellation through dividend compensation - - (12)

Gain on monetary position, net - - (43)

Foreign currency exchange difference, net (80) (22) (18)

Borrowing costs capitalized in property, plant and equipment 11 - 10

Reclassified to liabilities associated to assets classified as held for sale - - (100)

At the end of the year 1,613 1,438 1,614

⁽¹⁾ See Notes 5.1.3 and 5.1.5.

12.5.2 Details of borrowings:

Schedule of borrowings composition

Type of instrument Company Currency Residual value Interest Rate Expiration Book value as of 12.31.2022

Corporate bonds ⁽¹⁾

T Series CB PAMPA US$ 93 Fixed 7.38% Jul-23 95

Class 8 CB PAMPA $ 18 Variable Badlar + 2% Jul-23 20

Class 11 CB PAMPA $ 122 Variable Badlar + 0% Jan-24 140

Class 9 CB PAMPA US$ 102 Fixed 9.50% Dec-26 184

Class 1 CB PAMPA US$ 501 Fixed 7.50% Jan-27 616

Class 13 CB PAMPA US$ 49 Fixed 0.00% Dec-27 48

Class 3 CB PAMPA US$ 285 Fixed 9.13% Apr-29 292

1,395

Financial loans ⁽²⁾

PAMPA US$ 15 Variable Libor + 4.21% Nov-24 16

GW US$ 83 Variable Libor + 5.75% Sep-26 85

101

Other financial loans ⁽³⁾

PAMPA US$ 22 Variable SOFR + 0.35% Jul-23 23

PAMPA US$ 8 Fixed Between 9.50% and 14.50% Between Jan-23 and May-23 8

PAMPA US$ 27 Variable SOFR + 0% Agu-24 27

58

Bank overdrafts ⁽³⁾

PAMPA $ 57 Fixed Between 54% and 54.50% Jan-23 59

59

1,613

⁽¹⁾ Net of the following face value repurchases: US$ 113.7 million of ON 2026, US$ 146.2 million of ON 2027 and US$ 7.5 million of ON 2029.

⁽²⁾ During the the fiscal year ended December 31, 2022, the Company took on new short-term financing with domestic financial entities, net of cancellations, for a total $ 8,618 million and import prefinancing for US$ 7.6 million. Additionally, the Company repaid at maturity two principal installments for the credit facility sponsored by FINNVERA in the amount of US$ 7.7 million and US$ 10.4 million corresponding to the credit facility subscribed between IDB Invest and Greenwind, a Company that is consolidated since acquisition of an additional 50% interest in August 2022.

⁽³⁾ During the fiscal year ended December 31, 2022, the Company received disbursements in the amount of US$ 1.3 million under the credit facilities taken out with BNP Paribas S.A. in 2020. After the fiscal year closing, the Company repaid short-term bank loans with local financial entities for $ 10,065 million and import prefinancing for US$ 0.7 million.

Type of instrument Company Currency Residual value Interest Rate Expiration Book value as of 12.31.2021

Corporate bonds ⁽¹⁾

T Series CB PAMPA US$ 389 Fixed 7.38% Jul-23 400

Class 1 CB PAMPA US$ 636 Fixed 7.50% Jan-27 648

Class 3 CB PAMPA US$ 293 Fixed 9.13% Apr-29 292

1,340

Financial loans ⁽²⁾

PAMPA US$ 23 Variable Libor + 4.21% May-24 23

23

Other financial loans ⁽³⁾

PAMPA US$ 22 Variable Libor + 0.35% Jul-22 22

PAMPA US$ 43 Variable Libor + 0% Aug-23 42

64

Bank overdrafts

PAMPA $ 11 Fixed 33.00% Jan-22 11

11

1,438

⁽¹⁾ Net of the following face value repurchases: US$ 110,4 million of ON 2023, US$ 114,0 million of ON 2027 and US$ 7,5 million of ON 2029.

On September 27, 2021, the Company repaid at maturity Class 6 CBs for $ 6,355 million.

⁽²⁾ During the fiscal year ended December 31, 2021, the Company canceled short-term financing with local financial entities, net of borrowings, for $ 8,158 million. Additionally, the Company repaid at maturity two principal installments for the credit facility sponsored by FINNVERA in the amount of US$ 7.7 million.

⁽³⁾ During the fiscal year ended December 31, 2021, the Company received disbursements in the amount of US$ 27 million under the credit facilities taken out with BNP in 2020.

12.5.3 New Global Program of CB

On September 30, 2021, the Company’s General Ordinary and Extraordinary Shareholders’ Meeting resolved to approve the creation of a new global corporate bonds program for an amount of up to US$ 2,000 million or its equivalent in other currencies or units of value, in the form of simple corporate bonds non-convertible into shares and/or corporate bonds convertible into shares, to renew the program expired on December 29, 2021. The public offering was authorized by the CNV on December 9, 2021.

12.5.4 Issuance of CB Class 8

On January 18, 2022, the Company issued Class 8 CB in the amount of $ 3,107 million at a Badlar rate + 2%, maturing in 18 months. This is the first green bond issued by Pampa, which reflects the commitment to finance projects with a positive impact on the environment and to diversify the country’s energy generation matrix. The issue was recognised by Fix Ratings, an affiliate of Fitch Ratings, with the rating of Green Bond (BV1), the best possible grade, since it is aligned with the four main components of ICMA’s (International Capital Market Association) Green Bond Principles (GBP). It was issued in observance of the “Guidelines for the Issuance of Social, Green and Sustainable Bonds in Argentina” of the CNV Rules and the provisions of BYMA’s Social, Green and Sustainable Guide and the BYMA Rules, and also makes up BYMA’s Social, Green and Sustainable Bonds Panel.

The Company will allocate the issue’s proceeds to finance the expansion of PEPE IV (see Note 17.1).

12.5.5 Issuance of Class 10, 11, 12, 13 and 15 CB

On July 15, 2022, the Company issued Class 11 CB for $ 12,690 million, accruing interest at a variable BADLAR rate plus an annual 0% spread and maturing on January 15, 2024. Class 10 and Class 12 CB were declared unawarded.

Additionally, on August 8, 2022 the Company reopened Class 11 CB for $ 8,963.9 million at an issuance price of 1.0305. The total face value of outstanding Class 11 CB amounted to $ 21,654.6 million.

Finally, on December 13, 2022, the Company issued Clase 13 US$-link CB for US$ 49.9 million at a fixed interest rate of 0% and maturing on December 2027.

After the closing of the fiscal year, on January 11, 2023, the Company issued Class 15 CB for $ 10,379 million accruing interest at a variable BADLAR rate plus an annual 2% spread and maturing on July 11, 2024. Additionally, on March 2, 2023, the Company reopened Class 13 and Class 15 CB for US$ 48.2 million and $ 7,885 million, respectively.

12.5.6 Series T CB Exchange Offer

On June 16, 2022, the Company launched an exchange offer for holders of Series T CB maturing in 2023 originally issued by Petrobras Argentina S.A. (currently merged with the la Company) dated July 21, 2016 for a face value of US$ 500 million, under its Global Program authorized pursuant to CNV Resolution No. 17,162 dated August 15, 2013.

Once the exchange offer expired on July 29, 2022, the information and exchange agent informed the Company that US$ 193.8 million and US$ 213.3 million, representing 38.8% and 42.7% of the Series T CB’ outstanding principal, had been validly tendered for exchange under Option A and Option B, respectively, totaling a US$ 407.1 million participation and representing approximately 81.4% of the outstanding Series T CB’ capital amount.

Consequently, on August 8, 2022, after meeting the conditions established in the exchange offer documents, Pampa issued Class 9 CB for a face value of US$ 292.8 million, accruing interest at an annual fixed 9.5% rate and maturing on December 8, 2026, payable in three consecutive annual installments starting in 2024, and paid US$ 122.1 million in cash. For each US$ 1,000 of Series T CB’s capital amount validly tendered and accepted for exchange, eligible holders received, together with the payment of interest accrued on Series T CB up to the settlement date: (i) Option A: approximately US$ 377.2 in Class 9 CB and US$ 630.2 in cash; and (ii) Option B: US$ 1,030 in Class 9 CB.

As a result of the debt swap, the Company disclosed losses for US$ 14 million under “Other financial results” to reflect the change in the payment estimates discounted at Series T CB’s original effective interest rate, since they were not deemed substantially different from the issuance conditions for Class 9 CB, in accordance with IFRS.

As of the date of issuance of these Consolidated Financial Statements, outstanding Series T CB amount to US$ 92.9 million.

12.6   Trade and other payables

Schedule of trade and other payables

Note 12.31.2022 12.31.2021

Non-Current

Compensation agreements 10 3

Finance leases liability 10 9

Other 1 -

Other payables 21 12

Total non-current 21 12

Current

Suppliers 198 154

Customer advances 3 4

Related parties 16 14 15

Trade payables 215 173

Compensation agreements 12 2

Liability for acquisition of companies 46 -

Finance leases liability 2 4

Other 6 3

Other payables 66 9

Total current 281 182

Due to the short-term nature of the trade payables and other payables, their carrying amount is considered to be the same as their fair value. For most other non-current debts, fair values are also not significantly different from their book values.

12.7   Financial instruments by category

The following table presents financial instruments by category:

Schedule of financial instruments

As of December 31, 2022 Financial assets/liabilities at amortized cost Financial assets/liabilities at fair value through profit and loss Subtotal financial assets/liabilities Non financial assets/liabilities Total

Assets

Trade receivables and other receivables 437 22 459 31 490

Financial assets at amortized cost

Term deposit 101 - 101 - 101

Notes receivable 9 - 9 - 9

Financial assets at fair value through profit and loss

Government securities - 279 279 - 279

Corporate bonds - 116 116 - 116

Shares - 187 187 - 187

Mutual funds - 31 31 - 31

Cash and cash equivalents 11 95 106 - 106

Total 558 730 1,288 31 1,319

Liabilities

Trade and other liabilities 298 - 298 4 302

Borrowings 1,613 - 1,613 - 1,613

Derivative financial instruments - 2 2 - 2

Total 1,911 2 1,913 4 1,917

As of December 31, 2021 Financial assets/liabilities at amortized cost Financial assets/liabilities at fair value through profit and loss Subtotal financial assets/liabilities Non financial assets/liabilities Total

Assets

Trade receivables and other receivables 376 30 406 25 431

Financial assets at amortized cost

Term deposit 100 - 100 - 100

Notes receivable 10 - 10 - 10

Financial assets at fair value through profit and loss

Government securities - 278 278 - 278

Corporate bonds - 19 19 - 19

Shares - 149 149 - 149

Mutual funds - 41 41 - 41

Cash and cash equivalents 26 84 110 - 110

Total 512 601 1,113 25 1,138

Liabilities

Trade and other liabilities 190 - 190 4 194

Borrowings 1,438 - 1,438 - 1,438

Total 1,628 - 1,628 4 1,632

The categories of financial instruments have been determined according to IFRS 9.

The income, expenses, gains and losses derived from each of the financial instrument categories are indicated below:

As of December 31, 2022 Financial assets/liabilities at amortized cost Financial assets/liabilities at fair value through profit and loss Subtotal financial assets/liabilities Non Financial assets/ liabilities Total

Interest income 5 - 5 - 5

Interest expenses (175) - (175) (41) (216)

Foreign currency exchange difference, net 16 (85) (69) 149 80

Changes in the fair value of financial instruments - 110 110 - 110

Result from present value measurement (1) - (1) (13) (14)

Other financial results (15) - (15) - (15)

Total (170) 25 (145) 95 (50)

As of December 31, 2021 Financial assets/liabilities at amortized cost Financial assets/liabilities at fair value through profit and loss Subtotal financial assets/liabilities Non Financial assets/ liabilities Total

Interest income 10 - 10 - 10

Interest expenses (138) - (138) (40) (178)

Foreign currency exchange difference, net (11) (19) (30) 33 3

Changes in the fair value of financial instruments - (15) (15) - (15)

Result from present value measurement 2 - 2 (3) (1)

Other financial results (4) - (4) (4) (8)

Total (141) (34) (175) (14) (189)

As of December 31, 2020 Financial assets/liabilities at amortized cost Financial assets/liabilities at fair value through profit and loss Subtotal financial assets/liabilities Non Financial assets/ liabilities Total

Interest income 9 - 9 - 9

Interest expenses (164) - (164) (6) (170)

Foreign currency exchange difference, net 38 (35) 3 11 14

Changes in the fair value of financial instruments - 30 30 - 30

Result from present value measurement 6 - 6 (4) 2

Other financial results 36 - 36 (5) 31

Total (75) (5) (80) (4) (84)

12.8   Fair value of financial Instruments

The Company classifies the fair value measurements of financial instruments using a fair value hierarchy, which reflects the relevance of the variables used to perform those measurements. The fair value hierarchy has the following levels:

- Level 1: quoted prices (not adjusted) for identical assets or liabilities in active markets.

- Level 2: data different from the quoted prices included in Level 1 observable for the asset or liability, either directly (i.e. prices) or indirectly (i.e. derived from prices).

- Level 3: Asset or liability data based on information that cannot be observed in the market (i.e., unobservable data).

The following table shows the Company’s financial assets and liabilities measured at fair value as of December 31, 2022 and 2021:

As of December 31, 2022 Level 1 Level 2 Level 3 Total

Assets

Financial assets at fair value through
profit and losss

Government securities 279 - - 279

Corporate bonds 116 - - 116

Mutual funds 31 - - 31

Shares 160 - 27 187

Cash and cash equivalents

Mutual funds 95 - - 95

Other receivables 22 - - 22

Total assets 703 - 27 730

Liabilities

Derivative financial instruments - 2 0 2

Total liabilities - 2 - 2

As of December 31, 2021 Level 1 Level 3 Total

Assets

Financial assets at fair value through
profit and losss

Government securities 278 - 278

Corporate bonds 19 - 19

Mutual funds 41 - 41

Shares 120 29 149

Cash and cash equivalents

Mutual funds 84 - 84

Other receivables 30 - 30

Total assets 572 29 601

The value of the financial instruments negotiated in active markets is based on the market quoted prices as of the date of these Consolidated Financial Statements. A market is considered active when the quoted prices are regularly available through a stock exchange, broker, sector-specific institution or regulatory body, and those prices reflect regular and current market transactions between parties that act in conditions of mutual independence. The market quotation price used for the financial assets held by the Company is the current offer price. These instruments are included in Level 1.

The fair value of financial instruments that are not negotiated in active markets is determined using valuation techniques. These valuation techniques maximize the use of market observable information, when available, and rely as little as possible on specific estimates of the Company. If all significant variables to establish the fair value of a financial instrument can be observed, the instrument is included in Level 2.

If one or more variables used to determine the fair value cannot be observed in the market, the financial instrument is included in Level 3.

The techniques used for the measurement of assets at fair value with changes in profit (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 year, and the amount at the time of the contract.

- Shares: it was determined using the income-based approach through the “Indirect Cash Flow” method, that is, the net present value of expected future cash flows, mainly through the collection of dividends taking into consideration the direct equity interest of 2.84% and 3.19%, and the additional equity interest of 2.18% and 2.46% through HIDISA and HINISA, in TJSM and TMB, respectively, resulting from the Federal Government’s restructuring of assets in the energy sector. This restructuring resulted in TMB’s and TJSM’s share transfer from the Federal Government to IEASA, considering 16.4% and 13.7% discount rate as of December, 31 2022 and 2021, respectively. The key assumptions were prepared based on estimates on the future behavior of certain sensitive variables, including: (i) the dividend distribution policy; (ii) reference prices for energy sold in the spot market; (iii) projections of the availability and dispatch of power plants; (iv) the evolution of structural costs and expenses; (v) macroeconomic variables such as inflation and exchange rates, etc. The Company recognised losses for US$ 1.7 million and earnings for US$ 18 million as a result of changes in the fair value of financial instruments classified as level 3, under the item “Other financial results” of the Consolidated Statement of Comprehensive Income, as of December, 31 2022 and 2021, respectively. Current values may substantially differ from projections, mainly on account of: i) the timeliness and magnitude of the distribution of dividends, ii) the timeliness and magnitude of energy price updates, and/or iii) the evolution of costs. The Company estimates that any sensitivity analysis that considers changes in any of the estimates taken individually may lead to distorting conclusions, generating an adverse effect on the Company’s results.