| GENERAL INFORMATION AND GROUP STRUCTURE | 1.1 General information The Company is the largest fully
integrated power company in Argentina and, directly and through its subsidiaries, it participates in the electricity and oil and
gas value chains. In the generation segment, the Company
has a 3,756 MW installed capacity, which represents approximately 10.3% of Argentina’s installed capacity, and is the third
largest independent generator in the country. Additionally, the Company is currently undergoing a process to expand its capacity
by 598 MW. In the electricity distribution
segment, the Company has a controlling interest in Edenor, the largest electricity distributor in Argentina, which has 3 million
customers and a concession area covering the Northern part of the City of Buenos Aires and Northwestern Zone of Greater Buenos
Aires. In the oil and gas segment, the
Company is one of the leading oil and natural gas producers in Argentina, with operations in 16 production areas and 9 exploratory
areas and an average annual production level for the year 2017 (without considering the production of the
Medanito-La Pampa area for the benefit of PEPASA) Due to the divestment mentioned in Note 1.5.2, certain assets
from de segment and the liabilities associated have been classified as held for sale. In the refining and distribution
segment, the Company owns the Dr. Ricardo Eliçabe Refinery in the City of Bahía Blanca, which has a 30,200 barrels/day
capacity, and has a 28.5% interest in Refinor (owner of a refinery located in the Province of Salta, and 81 gas stations in
Northern Argentina). Furthermore, the Company sells fuels through a network of 250 gas stations located in the center and south
of the country, and the Dock Sud and Caleta Paula Terminals. Additionally, the Company produces lubricants in its Avellaneda industrial
plant. Due to the divestment mentioned in Note 1.5.1, certain assets from de segment and the liabilities
associated have been classified as held for sale. In the petrochemicals segment, the
Company has three high-complexity plants producing a wide variety of petrochemical products, including styrenics and synthetic
rubber, and holding a large market share. Finally, through its holding and
others segment, the Company participates in the electricity and gas transportation businesses, conducts financial investment transactions
and maintains investments in complementary 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 20,718 km high-voltage electricity
transmission network in Argentina with an 85% share in the Argentine electricity transmission market. 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 9,184 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 1.2. Acquisition of PPSL’s
Capital stock On May 13, 2016, Petrobras Internacional
Braspetro B.V. (“Petrobras Holland”), a subsidiary of Petróleo Brasileiro S.A. (“Petrobras Brazil”)
and the Company executed a share purchase agreement for the acquisition by the Company of the whole capital stock of PPSL, which
holds 67.1933% of the capital stock and voting rights in Petrobras (respectively, the “Share Purchase Agreement” and
the “Transaction”). As part of the Transaction and the purchase price, the Company acquired a Petrobras Holland credit
with PPSL (the “PPSL Credit”) for an amount to US$ 80 million. On July 27, 2016, the Transaction
was closed upon the meeting of all applicable conditions precedent. On November 21, 2016, the parties agreed on certain adjustments
to the Transaction’s final price, which was set at US$900 million, financed as follows: a) cash from the Company US$
278 million; b) syndicated loan US$ 271 million c) funds obtained from the sale of TGS US$ 161 million; d) YPF financing US$ 140
million; and e) EMES financing US$ 50 million. The following operations were completed
after the closing of the Transaction:
(i) On October 27, 2017, an affiliate of Petrobras Brazil acquired 33.6% of all rights and obligations in the concession over the Neuquén River area for an amount of US$ 72 million, and 100% of the rights and obligations pursuant to the Operating Agreement entered into by Petrobras, Bolivia branch, and YPF Bolivia regarding the Colpa and Caranda areas in Bolivia for a negative value of US$ 20 million.
(ii) On October 14, 2017, YPF acquired of Petrobras 33.33% of all rights and obligations in the concession over the Río Neuquén area for the amount of US$ 72 million and the 80% interest in the concession on 1.2.1 Fair value of the acquisition The following table details the
fair value of the transferred consideration, the fair values of the acquired assets, the assumed liabilities and the non-controlling
interest corresponding to PPSL’s acquisitions as at July 27, 2016 (in millions of Argentine Pesos):
Purchase price allocation
Cash payment 13,362
Total consideration transferred 13,362
Investments in joint ventures 3,407 (a)
Investments in associates 777 (b)
Financial assets at amortized cost 21,801 (c)
Intangible assets 224 (d)
Financial assets at fair value through profit and loss 653 (b)
Financial assets at amortized cost 315
Trade and other receivables 7,256 (e)
Inventories 3,072
Cash and cash equivalents 4,384
Non current assets classified as held for sale 3,405
Trade and other payables (4,324)
Borrowings (7,434)
Salaries and social security payable (383)
Defined benefit plans (484)
Deferred tax liabilities (4,096)
Taxes payables (859)
Provisions (5,793) (f)
Liabilities associated with assets classified as held for sale (240)
Income tax and minimum notional income tax provision (1,444)
Non-controlling interest (7,869) (g)
Goodwill 994 (h)
Total purchase price allocation 13,362
(a) Interests in joint ventures
(b) Interests in associates:
- Interests in mixed companies in Venezuela Since the acquisition of
PPSL entailed a change in Petrobras’ indirect parent company, the written authorization by the Venezuelan Government required
by section 6.3 of the timely executed Conversion Contracts should be obtained. Given that as of the date of the acquisition of
PPSL, the authorizations regarding the change of indirect control by the Government of Venezuela were not obtained, and considering
the fact that the contracts of mixed companies provide the mandatory transfer of the shares for these cases, the Company has determined
market value for its investment as of the date of acquisition was zero, considering: i) the monetary and fiscal policies implemented
by the Venezuelan government together with the significant drop in international oil prices since 2014 that have eroded the ability
of the mixed companies to efficiently operate the producing fields that resulted in increasing losses and reduction of equity in
those investments, and ii) that there is very unlikely to acquire these assets in a stand-alone transaction, as conversion contracts
establish that the transfer of direct control of the shares without obtaining prior approval of Venezuelan Government, implies
that such participation is considered finished and all of the shares shall be transferred without any consideration in exchange
for those shares. As of the issuance of these financial statements, the Company has not obtained the above-mentioned authorizations;
however the Company is working on the requirements of the Government of Venezuela´s authorities, including the presentation
of development and remediation plans for the respective areas.
- Other associates and other investments classified as financial asset at fair value through profit and loss
(c) Property, plant and equipment:
- Mining Property:
- Other Property, plant and equipment
(d) Intangible Assets Useful life was based on
the amount and the moment on which the Company expects to derive economic benefits. It was assigned an average useful life of five
years based, among other factors, on the contractual agreements, consumers’ behaviors and economic factors associated with
the combined companies.
(e) Acquired Receivables
(f) Contingent Liabilities In March 2017, and as a result
of the Company’s adherence to the regularization regime (moratorium) regarding certain identified liabilities (see detail
in Note 43), which granted certain benefits consisting of the forgiveness of tax fines and a reduction of compensatory interest,
a payment obligation in the amount of $ 171 million was generated in favor of Petrobras Brasil as contingent consideration
under the share purchase agreement on account of the acquisition of Petrobras paid in April 18, 2017.
(g) Non-controlling interest in Petrobras
(h) Goodwill The Company has incurred in transaction
expenses associated with the acquisition of PPSL, the mandatory tender offer and voluntary public offer for the exchange of Petrobras’shares
in the amount of $ 305 million during the fiscal year ended December 31, 2016, mainly corresponding to fees and advisory
services included in Administrative Expenses in the Statement of Comprehensive Income. As a result of the acquisition of
PPSL, the Company paid $ 13,362 million, which net of cash and cash equivalent acquired of $ 4,384, results in a net cash flow
of $ 8,978, which is disclosed in the line “Payment for companies’ acquisitions” in statement of cash flow within
investment activities. 1.2.2 Mandatory tender offer
and voluntary public offer for the exchange of Petrobras’shares (the “offers”) Pursuant to the provisions of Sections
87 and following provisions of Capital Market Act No. 26,831 and Section II, Chapter II, Title III of the CNV provisions on mandatory
tender offers on account of changes of control and acquisition of significant indirect interests, on May 20, 2016 the Company's
Board of Directors resolved to make a tender offer for the acquisition of the 662,445,264 Petrobras’ shares held by the investing
public, which represent 32.81% of the capital stock and voting rights in Petrobras (the “Cash Acquisition Offer”),
subject to the Transaction Close and the approval of the Cash Acquisition Offer by the CNV and the SEC. Furthermore, the Board
of Directors decided to launch a voluntary public offer for the exchange of Petrobras’ shares, (the “Exchange Offer”)
subject to the same conditions applicable to the Cash Acquisition Offer to avoid a higher use of cash or greater financial indebtedness
to meet the Cash Acquisition Offer. The authorization to make the Offer
to Petrobras’ minority shareholders at a price per share of US$ 0.6825 which, converted into pesos at the official exchange
rate at the Transaction’s closing date, amounts to $ 10.3735, was granted through an ordinance issued by the CNV’s
Board of Directors on September 22, 2016 and Resolution No. 18,243 issued by the CNV on September 28, 2016 (approving the issuance
of Pampa Shares). On October 3, 2016, the Company requested the SEC to expedite the effectiveness of the International Tender Offer,
which was granted on October 6, 2016 and finishing on November 14, 2016. On November 22 and 23, 2016 the
Offers were completed with the following results:
(i) In the domestic tranche, 365,532,273 Petrobras’ common shares were submitted, out of which 311,669,706 shares opted for the Cash Acquisition Offer at a price of $ 10.3735 per share, which entailed a $ 3,233.1 million disbursement; and 53,862,567 shares were exchanged for the Company’s common shares at a 0.5253 ratio, which entailed the issuance of 28,294,006 new Company common shares. (ii)
In the international tranche, 21,388,145 Petrobras’ ADRs were submitted to the Exchange Offer and were exchanged for
ADSs of the Company at a 0.2101 ratio, which entailed the issuance of 4,493,649 ADSs of the Company, equivalent
to 112,341,232 shares of the Company. As
a result of the Offers, the Company has increased its direct and indirect interests in Petrobras to 90.4%. 1.3. Sale of participations 1.3.1. Sale and swap of indirect
interest in TGS On July 18, 2016, the Company executed
an agreement with Grupo Inversor Petroquímica S.L. (members of the GIP Group, headed by the Sielecki family), WST S.A. and
PCT L.L.C. (members of the Werthein group) (jointly, the “Purchasers”) for the sale of 25.5% indirect interest in TGS
(through PEPCA, owner of a 10% equity interest in CIESA and through other subsidiaries rightholders as the only beneficiary of
the trust that owns 40% equity interest in CIESA, the “interest in TGS”) for a base price of US$ 241 million,
subject to certain adjustments resulting from PEPCA’s financial position at the closing of the transaction. As part of the conditions for the
closing of the transaction, the Purchasers agreed to assume the risk in case the necessary regulatory approvals are not obtained.
Furthermore, and subject to the closing of the acquisition of PPSL, the Company acquired an option, valid until February 2017,
to swap the rights as sole beneficiary of the CIESA Trust in exchange of the shares of PHA, which holds 25% of CIESA and 15% of
CIESA’s shares, both of which are owned by Petrobras Argentina. (the “Exchange”). On July 27, 2016 the transaction was perfected
and the economic impact of the transaction reached to a gain of approximately $ 480 million. On January 11, 2017, the CNDC approved
the acquisition by the Company of 40% of CIESA’s capital stock, an interest that had been acquired by the Company through
CIESA’s financial debt swap executed on July, 2012 and 100% of PEPCA shares acquired on March, 2011. On January 17, 2017, the exchange
whereby the Purchasers transferred to PHA their capacity as beneficiaries and trustees of the trust holding 40% of CIESA's capital
stock and voting rights, and the Company and PHA transferred to the Purchasers shares representing 40% of CIESA’s capital
stock and voting rights, was perfected; the Group thus keeping a 10% direct interest in CIESA's capital stock and voting rights.
The Exchange was approved by ENARGAS on December 29, 2016. The Purchasers and the Company’s direct and indirect interests
in TGS remain unaltered as a result of the Exchange. Furthermore, on this same date the
Purchasers paid the balance of the purchase price for a total amount of US$ 80 million plus applicable interest. 1.3.2. Sale of interest in Greenwind With the purpose of incorporating into
the project a strategic partner contributing part of the investments necessary for the development of the Corti Wind Farm, on March
10, 2017, CTLL and PP entered into an agreement with Valdatana Servicios y Gestiones S.L.U., an entity which later changed its
name to Viento Solutions S.L. for the sale of 50% of Greenwind’s capital stock and rights for a total amount of US$ 11.2 million. As a result of the transaction, the Company
has deconsolidated Greenwind's assets and liabilities and presents its interest in the joint venture based on the equity method
of accounting. 1.4. Corporate reorganization The corporate reorganizations mentioned
below are carried out in order to obtain important benefits for the Company and all its corporate group, as it will allow for enhanced
operating efficiency; an optimized use of available resources; the leveraging of technical, administrative and financial structures;
and the implementation of converging policies, strategies and goals. Furthermore, the high complementarity between the participating
companies will be leveraged, thus reducing costs resulting from the duplication and overlapping of operating and administrative
structures. This reorganization was perfected
by means of a merger through absorption process, under the terms of tax neutrality pursuant to articles
77 and following of the Income Tax Law, The Absorbing Company and the Absorbed
Companies are currently performing the necessary procedures before the applicable entities in order to obtain the authorizations,
registrations and recordings necessary for the Absorbing Company to operate as the continuing company in the merger. Notwithstanding
that, in view of the need to request and obtain a large number of authorizations, registrations and recordings which must be granted
by several national, provincial and municipal entities and the impossibility to obtain such approvals on a simultaneous basis,
some absorbed companies will exceptionally continue operating and performing certain activities on behalf and at the expense of
the Absorbing Company with the sole purpose of not hindering their course of business until all authorizations, registrations and
recordings are finally obtained. 1.4.1. 2016 Reorganization: On August 10, 2016, the Company
and Petrobras’ Board of Directors resolved to instruct both managements to initiate all necessary tasks and procedures to
merge Pampa Energía, as acquiring company, with Petrobras, as acquired company Furthermore, the management of both
companies considered it appropriate that under such merger, two Petrobras’ subsidiaries should be incorporated as absorbed
companies: PEISA (95% through a direct interest and 5% through an indirect interest) and Albares (100% direct interest). The merger was effective as of November
1, 2016, date on which the transfer to the absorbing company of all the rights and obligations, assets and liabilities of Petrobras,
PEISA and Albares became effective, all of which subject to the corresponding corporate approvals under the applicable law and
the registration with the Registry of Commerce of the merger and the dissolution without liquidation of the absorbed companies. Pursuant to the PMC approved by
the Board of Directors of the participating companies
(i) each Petrobras’ minority shareholder will receive 0.5253 common shares of the Company with a face value of $ 1 each and each granting the right to one vote for each share it held before the merger.
(ii) each minority holder of Petrobras’ ADRs will receive 0.2101 ADSs of the Company for each Petrobras’ ADR it held before the merger. As regards
PEISA and Albares, as Petrobras holds 100% of the capital stock of such companies, no capital stock increase will be necessary
and, consequently, there will be no exchange ratio for the shares of these companies. On February
16, 2017, the Extraordinary General Meetings of Shareholders approved the merger of Pampa Energía —as acquiring company—
with Petrobras, PEISA and Albares —as acquired companies— in agreement with the terms of the PMC. On April 19, 2017,
the final merger agreement was entered into. Once the exchange
of shares is perfected, the Company will issue 101,873,741 common shares with a face value of $ 1 each and each granting
the right to one vote and, after the merger through absorption is effected, the Company’s capital stock will be made up of
1,938,368,431 common shares. Pursuant to the provisions of Chapter
X of the CNV provisions, the Company has filed a merger authorization proceeding before this entity and obtained from the CNV its
authorization to publish the merger prospectus On February
26, 2018, the CNV notified the Company that, under the proceeding investigating the sale of Petrobras Argentina’s shares
held by FGS-ANSES in the MTO, Federal Criminal and Correctional Court No. 11, Clerk’s Office No. 22, ordered it to refrain
from adopting any measures and/or final resolution on the merits of the case without the prior approval by this Court, where the
Company’s corporate reorganization case is being heard. It is worth highlighting that this proceeding does not deal with
the merger but with the voluntary participation of shareholder FGS-ANSES in Petrobras Argentina's cash purchase offer under the
MTO that the Company was forced to launch when it indirectly acquired 67.1933% of Petrobras Argentina's capital stock. The reorganization
process took place after the MTO and was completely independent from it, and FGS-ANSES did not take part in it since, at that time,
it was not a Petrobras Argentina’s shareholder. The delay in the registration of the merger
directly affects approximately 6,250 domestic and foreign shareholders of Petrobras Argentina that are awaiting the share exchange
which will take place after the registration of the merger. Therefore, the Company understands that
the above-mentioned judicial proceeding is completely unrelated to the merger and has not exercised any influence on it, and will
continue promoting the measures necessary to obtain the registration of the merger. 1.4.2. 2017 Reorganization: On June 26, 2017, the Board of Directors
instructed the Company’s Management to start the proceedings allowing to evaluate the benefits of a merger through absorption
process between the Company, as absorbing company, and certain companies of the group, as absorbed companies. On September 22, 2017, the Company’s
Board of Directors informed that the companies which will take part in these merger will be the Company, as absorbing company,
and BLL, CTG, CTLL, EG3 Red, INDISA, INNISA, IPB, PP II and PEPASA, as absorbed companies. The merger became effective on October
1, 2017, date as from which the transfer of the absorbed companies’ equity to the absorbing company became effective and,
therefore, all their rights and obligations, assets and liabilities will become incorporated into the absorbing company’s
equity, all of which subject to the corresponding corporate approvals under the applicable law and the registration with the Public
Registry of Commerce of the merger and the dissolution without liquidation of the absorbed companies. Except for PEPASA, CTG, INNISA and INDISA,
companies with third parties’ shareholding, there was no exchange ratio for the other companies subject-matter of the merger
as the Company directly and/or indirectly held 100% of the capital stock of such companies. Since PEPASA and the Company’s assets
are subject to the public offering system and listed in ByMA, the Board of Directors decided to propose to the Shareholders’
Meeting an exchange ratio based on the volume-weighted average price of the Company and PEPASA’s shares traded over the last
six months, determined retroactively as from the Board meeting’s date on September 22, 2017, with a resulting exchange ratio
of 2,2699 common shares with a face value of $ 1 each and each granting the right to one vote for each PEPASA common share in book-entry
form with a face value of $ 1 and granting the right to one vote. Pursuant to the CPF approved on December,
21, 2017 by the Board of Directors of the participating companies
(i) each PEPASA’ minority shareholder will receive 2,2699 common shares of the Company with a face value of $ 1 each and each granting the right to one vote for each share it held before the merger;
(ii) each INNISA’ minority shareholder will receive 0,2644 common shares of the Company with a face value of $ 1 each and each granting the right to one vote for each share it held before the merger;
(iii) each INDISA’ minority shareholder will receive 0,1832 common shares of the Company with a face value of $ 1 each and each granting the right to one vote for each share it held before the merger;
(iv) each CTG’ minority shareholder will receive 0,6079 common shares of the Company with a face value of $ 1 each and each granting the right to one vote for each share it held before the merger. Once the exchange
of shares is perfected, the Company will issue 144.322.083 common shares with a face value of $ 1 each and each granting the
right to one vote and, after the merger through absorption is effected, the Company’s capital stock will be made up of 2.080.190.514
common shares. The Company has recognized the effects of this exchange under Shareholders’ Equity in the Consolidated Statement
of Changes in Shareholders’ Equity. As of the
issuance of these financial statements, the CNV’s authorization to the publication of the merger prospectus, the approval
of the merger by each company’s shareholders’ meetings and the registration of the merger with the applicable controlling
authorities are still pending. 1.4.3.
Merger of Subsidiaries The merger's effective date detailed
below 1.4.3.1. CTLL, EASA and IEASA On December 7 and 22, 2016, the
Board of Directors of CTLL, EASA and IEASA resolved to initiate all necessary tasks and procedures for the merger through absorption
among CTLL, as absorbing company, and EASA and IEASA, as absorbed companies. In analyzing this reorganization,
EASA’s management concluded that, in order for the process to be viable, it was necessary to capitalize the debt EASA held
with holders of Series A and B Discount Corporate Bonds issued on July 19, 2006 and maturing in 2021. On March 27, 2017 EASA’s
Extraordinary General Meeting of Shareholders resolved to capitalize such CBs, which was accepted by PISA in its capacity as sole
holder. Pursuant to Board Resolution No.
347 passed on August 11, 2017, the ENRE resolved, by a majority of votes, to reject the request for merger authorization submitted
by EDENOR and EASA, and these companies appealed this resolution timely and in due form on considering that it did not conform
to law. On December 26, 2017 EASA was served notice of MEyM Resolution No. 501 upholding the filed appeal, revoking ENRE’s
Board of Directors’ Resolution No. 347 and sustaining the merger authorization request. On January 18, 2018, the shareholders’
meetings of the intervening companies approved the merger and on February 19, 2018, the merger final agreement was entered into. As of the issuance of these financial
statements, the merger is pending registration with the Public Registry, to which effect the intervening companies are filing all
applicable presentations with the corresponding bodies. 1.4.3.2. PACOSA and WEBSA On December 7, 2016, the Boards
of Directors of PACOSA and WEBSA resolved to begin all necessary tasks and procedures for the merger through absorption between
PACOSA, as absorbing company, and WEBSA as absorbed company. On March 7, 2017, the shareholders’
meetings of the intervening companies approved the merger, and on May 30, 2017 the merger final agreement was entered into. As of the issuance of these financial
statements, the merger is pending registration with the Public Registry, to which effect the intervening companies are filing all
applicable presentations with the corresponding bodies. 1.5. Assets classified as held for sale,
related liabilities and discontinued operations 1.5.1. Sale of assets in the Refining
and Distribution segment On December 7, 2017, the Company executed
with Trafigura Ventures B.V and Trafigura Argentina S.A. an agreement for the sale of certain assets in the Company’s refining
and distribution segment based on the conviction that the oil refining and distribution business calls for a larger scale to attain
sustainability. The closing of the transaction, which is subject to the meeting of certain conditions precedent, such
as respective government approvals The assets subject-matter of the transaction
are as follows: (i) the Ricardo Eliçabe refinery; (ii) the Avellaneda lubricants plant; (iii) the Caleta Paula reception and
dispatch plant; and (iv) the network of gas stations currently operated under Petrobras branding. The Dock Sud storage facility is excluded
from the sale, as well as the Company's investment in Refinería del Norte S.A. The transaction
price comprises US $ 90 million in cash that includes the usual working capital of the business, which will be adjusted when the
transaction is completed and an additional amount financed that will be determined at the close of the transaction, according to
the methodology established in the contract. Pursuant
to the foregoing, as of December 31, 2017, assets and liabilities subject to this transaction have been classified as held for
sale, and the results for affected operations have been disclosed under “Discontinued Operations” in the consolidated
statement of comprehensive income and in the consolidated statement of cash flows. As this business has been acquired through the
acquisition of PPSL, financial information reflects the effect of consolidation from July 27, 2016 when de acquisition was consummated.
it involved the recognition of an impairment of Intangible assets and Property,
plant and equipment in the amount of $ 1.5.2. Sale of PELSA shares and certain
oil areas On January 16, 2018, the Company agreed
to sell to Vista Oil & Gas S.A.B. de C.V. (“Vista”) its direct 58.88% interest in PELSA and its direct interests
in the Entre Lomas, Bajada del Palo, Agua Amarga and Medanito-Jagüel de los Machos blocks, in line with the Company's strategy
to focus its investments and human resources both on the expansion of its power generation installed capacity and on the exploration
and production of natural gas, placing a special focus on the development and exploitation of unconventional gas reserves, as well
as to continue investing on the development of its utility concessions. The sale price amounts to US$ 360 million.
The closing of the transaction is subject to the meeting of certain conditions precedent, including approval by shareholders meeting
of Vista. The Company expects that it will represent earnings before taxes in the amount of approximately $ 1.400 million,
which will be adjusted at the time of closing the transaction. Consequently, as of December 31, 2017,
assets and liabilities subject to this transaction have been classified as held for sale, and the results for affected operations
have been disclosed under “Discontinued Operations” in the consolidated Statement of comprehensive income and in the
consolidated statement of cash flows. As this business has been acquired through the acquisition of
PPSL, financial information reflects the effect of consolidation from July 27, 2016 when de acquisition was consummated. The consolidated statement
of comprehensive income related to discontinued operations is presented below: As of December 31, 2017:
Oil and gas Refining y distribution Eliminations Total
Revenue 5,972 16,795 (6,890) 15,877
Cost of sales (4,840) (14,256) 6,906 (12,190)
Gross profit 1,132 2,539 16 3,687
Selling expenses (182) (1,957) - (2,139)
Administrative expenses (127) (80) - (207)
Exploration expenses (19) - - (19)
Other operating income 377 223 - 600
Other operating expenses (181) (110) - (291)
Impairment of non current assets classified as held for sale - (687) - (687)
Operating income (loss) 1,000 (72) 16 944
Finance income 22 15 - 37
Finance expenses - (16) - (16)
Other financial results (239) (14) - (253)
Financial results, net (217) (15) - (232)
Income (loss) before income tax 783 (87) 16 712
-
Income tax and minimum notional income tax (662) 44 - (618)
Profit (loss) of the year for discontinued operations 121 (43) 16 94
Other comprehensive income
Items that will not be reclassified to profit or loss
Remeasurements related to defined benefit plans (7) 17 - 10
Income tax (174) (6) - (180)
Items that may be reclassified to profit or loss -
Exchange differences on translation 773 - - 773
Other comprehensive income of the year for discontinued operations 592 11 - 603
Total comprehensive income (loss) of the year for discontinued operations 713 (32) 16 697
Oil and gas Refining y distribution Eliminations Total
Total income (loss) of the year for discontinued operations attributable to:
Owners of the company 10 (43) 16 (17)
Non - controlling interest 111 - - 111
121 (43) 16 94
Total comprehensive income (loss) of the year for discontinued operations attributable to:
Owners of the company 282 (32) 16 266
Non - controlling interest 431 - - 431
713 (32) 16 697 As of December 31, 2016:
Oil and gas Refining y distribution Eliminations Total
Revenue 2,456 6,550 (2,821) 6,185
Cost of sales (1,941) (5,973) 2,931 (4,983)
Gross profit 515 577 110 1,202
Selling expenses (63) (757) - (820)
Administrative expenses (25) (23) - (48)
Exploration expenses (41) - - (41)
Other operating income 235 459 (377) 317
Other operating expenses (656) (98) 377 (377)
Operating income (35) 158 110 233
Finance income 38 6 - 44
Finance expenses (10) (9) - (19)
Other financial results (43) (40) - (83)
Financial results, net (15) (43) - (58)
Income (loss) before income tax (50) 115 110 175
Income tax and minimum notional income tax (24) (40) (39) (103)
Profit (loss) of the year for discontinued operations (74) 75 71 72
Other comprehensive income
Items that will not be reclassified to profit or loss
Remeasurements related to defined benefit plans (62) 14 - (48)
Income tax 22 (5) - 17
Items that may be reclassified to profit or loss -
Exchange difference |
