Table of Contents

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN ISSUER

Pursuant to Rule 13a-16 or 15d-16 of

of The Securities Exchange Act of 1934

For ~~June~~September 30, 2014

MetroGas Inc.

(Translation of registrant’s name into English)

MetroGAS S.A.

Gregorio Araoz de Lamadrid 1360

(1267) 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~~

IfRule ~~“Yes”~~12g3-2(b) isunder ~~marked, indicate below~~ the ~~file~~Securities ~~number~~Exchange ~~assigned~~Act toof ~~the registrant in connection with Rule 12g3-2(b)~~1934:

Yes ¨ No x

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): ¨

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.

METROGAS S.A.

METROGAS S.A.

CONDENSED INTERIM CONSOLIDATED FINANCIAL

STATEMENTS AS OF ~~JUNE~~SEPTEMBER 30, 2014 AND COMPARATIVES

TABLE OF CONTENTS

LEGAL INFORMATION		1	1
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION		2	2
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF PROFIT AND LOSS AND OTHER COMPREHENSIVE INCOME		3	3
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDER’S EQUITY		4	4
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS		5	5
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
1. GENERAL INFORMATION		6
1.	GENERAL INFORMATION		6
2. ECONOMIC AND FINANCIAL POSITION AND REGULATORY FRAMEWORK		6
2.	ECONOMIC AND FINANCIAL POSITION AND REGULATORY FRAMEWORK		6
3. BASIS FOR PRESENTATION OF CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS		9
3.	BASIS FOR PRESENTATION OF CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS		11
4. ACCOUNTING POLICIES		9
4.	ACCOUNTING POLICIES		11
5. CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS		10
5.	CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS		12
6. FINANCIAL RISK MANAGEMENT		10
6.	FINANCIAL RISK MANAGEMENT		12
7. FINANCIAL INSTRUMENTS		10
7.	FINANCIAL INSTRUMENTS		12
8. INTERESTS IN SUBSIDIARIES		11
8.	INTERESTS IN SUBSIDIARIES		13
9. SEGMENT REPORTING		12
9.	SEGMENT REPORTING		14
10. PROPERTIES, PLANT AND EQUIPMENT		13
10.	PROPERTIES, PLANT AND EQUIPMENT		15
11. INVESTMENT PROPERTIES		14
11.	INVESTMENT PROPERTIES		16
12. TRADE RECEIVABLES		15
12.	TRADE RECEIVABLES		17
13. OTHER RECEIVABLES		16
13.	OTHER RECEIVABLES		18
14. CASH AND CASH EQUIVALENTS		18
14.	CASH AND CASH EQUIVALENTS		20
15. SHAREHOLDERS’ EQUITY AND ISSUED CAPITAL		18
15.	SHAREHOLDERS’ EQUITY AND ISSUED CAPITAL		20
16. OTHER TAXES PAYABLES		19
16.	OTHER TAXES PAYABLES		21
17. FINANCIAL DEBT		20
17.	FINANCIAL DEBT		22
18. REORGANIZATION LIABILITIES		21
18.	REORGANIZATION LIABILITIES		24
19. PROVISIONS		22
19.	PROVISIONS		24
20. TRADE PAYABLES		22
20.	TRADE PAYABLES		25
21. SALARIES AND SOCIAL SECURITY		23
21.	SALARIES AND SOCIAL SECURITY		26
22. OTHER ACCOUNTS PAYABLE		23
22.	OTHER ACCOUNTS PAYABLE		26
23. REVENUES		23
23.	REVENUES		27
24. EXPENSES BY NATURE		24
24.	EXPENSES BY NATURE		28
25. OTHER INCOME AND EXPENSES		25
25.	OTHER INCOME AND EXPENSES		29
26. NET FINANCE RESULTS		25
26.	NET FINANCE RESULTS		29
27. INCOME TAX AND MINIMUM PRESUMED INCOME TAX		26
27.	INCOME TAX AND MINIMUM PRESUMED INCOME TAX		30
28. NET RESULT PER SHARE		28
28.	NET RESULT PER SHARE		32
29. BALANCES AND TRANSACTIONS WITH RELATED PARTIES		28
29.	BALANCES AND TRANSACTIONS WITH RELATED PARTIES		32
INFORMATIVE SUMMARY OF ACTIVITY		33	37
INDEPENDENT AUDITORS’ REPORT

METROGAS S.A.

CONDENSED INTERIM FINANCIAL CONSOLIDATED STATEMENTS AS OF ~~JUNE~~SEPTEMBER 30, 2014 AND COMPARATIVES

LEGAL INFORMATION

Legal Address: Gregorio Aráoz de Lamadrid 1360, Ciudad Autónoma de Buenos Aires, Argentina.

Fiscal Year: No. 23 (commenced on January 1° 2014).

Condensed Consolidated Interim Financial Statements as of ~~June~~September 30, 2014 and comparatives.

Company’s Principal Business: provision of natural gas distribution services

Registration with the Public Registry of Commerce: December 1, 1992

Expiry Date of the Articles of Incorporation: December 1, 2091

Last Amendment of the By-Laws: April 30, 2013

Parent Company: YPF S.A.

Legal Address of the controlling company: Macacha Güemes 515, Ciudad Autónoma de Buenos Aires, Argentina.

Principal Business of the controlling company: study, exploration and exploitation of liquid and/or gaseous hydrocarbons and other minerals, as well as the industrialization, transportation and marketing of these products and their byproducts, also including petrochemical products, and non-fossil fuels and chemicals, biofuels and their components, electric power generation based on hydrocarbons, telecommunication services, as well as production and industrialization, processing, marketing, conditioning services, grain transportation and storage and their byproducts.

Percentage of votes held by parent company: 70%

Composition in Common Stock as of 0609.30.14:

Classes of Shares	Subscribed,Registered and Paid-in(thousands of Ps.)
Outstanding
Common certified shares of Ps. 1 par value and 1 vote each:
Class “A”		290,277
Class “B”		221,977
Class “C”		56,917
Capital Stock as of 06.30.14		569,171
Capital Stock as of 09.30.14		569,171

METROGAS S.A.

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

AS OF ~~JUNE~~SEPTEMBER 30, 2014 AND DECEMBER 31, 2013 (Stated in thousands of pesos)

	Notes		0609.30.14			12.31.13
Assets
Non current Assets
Properties, plant and equipment		10		1,~~875~~903,~~249~~131			1,849,603
Deferred tax assets		27		14,~~112~~833			1,107
Other investment				1,~~040~~122			909
Investment properties		11		2,~~486~~471			5,339
Other receivables		13		1112,~~960~~744			3,633
Total Non current assets				1,~~891~~924,~~847~~301			1,860,591
Current assets
Trade receivables		12		~~738~~937,~~729~~444			339,257
Other receivables		13		5062,~~414~~456			28,558
Cash and cash equivalents		14		~~148~~93,~~549~~574			116,592
Total Current assets				~~937~~1,~~692~~093,474			484,407
Total assets				23,~~829~~017,~~539~~775			2,344,998
Shareholders’ Equity
Issued capital		15		569,171			569,171
Adjustment to issued capital				—			684,769
Legal reserve				—			45,376
Unappropriated retained losses				(~~481~~502,~~142~~248	)		(878,082	)
Equity attributable to the owners				8866,~~029~~923			421,234
Non-controlling interest				2,~~054~~650			2,883
Total Shareholders’ Equity		15		9069,~~083~~573			424,117
Liabilities
Non current Liabilities
Financial debt		17		1,~~244~~302,~~062~~621			952,726
Deferred tax liabilities		27		~~220~~213,~~911~~147			224,739
Reorganization liabilities		18		1716,~~214~~521			17,040
Other taxes payable		16		7,~~324~~030			7,898
Provisions		19		7386,~~052~~877			58,304
Total Non current Liabilities				1,~~562~~626,~~563~~196			1,260,707
Current Liabilities
Trade payable		20		~~823~~890,~~141~~601			461,589
Salaries and social security		21		6993,~~745~~953			61,010
Income tax and minimum presumed income tax (“MPIT”) liability				2220,~~022~~411			32,269
Other taxes payable		16		~~134~~142,~~982~~861			94,157
Financial debt		17		97138,~~408~~681			398
Other accounts payable		22		2935,~~595~~499			10,751
Total Current Liabilities				1,~~176~~322,~~893~~006			660,174
Total Liabilities				2,~~739~~948,~~456~~202			1,920,881
Total Liabilities and Shareholders’ Equity				23,~~829~~017,~~539~~775			2,344,998

The accompanying notes 1 to 29 are an integral part of and should be read together with these statements.

David Tezanos Gonzalez

Chairperson

METROGAS S.A.

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF PROFIT AND LOSS AND OTHER COMPREHENSIVE INCOME

FOR THE ~~SIX~~NINE AND THREE MONTHS PERIOD ENDED ~~JUNE~~SEPTEMBER 30, 2014 AND 2013

(Stated in thousands of pesos)

			For the six months period ended						For the three months period ended
			For the nine months period ended						For the three months period ended
	Notes		0609.30.14			0609.30.13			0609.30.14			0609.30.13
Revenues		23		12,~~371~~570,~~166~~437			~~849~~1,~~575~~449,370			~~916~~1,~~829~~199,271			~~478~~599,~~116~~795
Operating costs		24		(1,~~053~~947,~~515~~600	)		(~~643~~1,~~058~~056,963	)		(~~662~~894,~~151~~085	)		(~~362~~413,~~801~~905	)
Gross profit				~~317~~622,~~651~~837			~~206~~392,~~517~~407			~~254~~305,~~678~~186			~~115~~185,~~315~~890
Administration expenses		24		(~~148~~241,~~456~~256	)		(98159,~~821~~537	)		(8292,~~971~~800	)		(5560,~~455~~716	)
Selling expenses		24		(~~144~~262,~~920~~882	)		(~~120~~193,~~499~~298	)		(86117,~~534~~962	)		(6472,~~788~~799	)
Other income and expenses		25		(611,977	)		(151,~~003~~840	)		7(11,~~864~~971	)		~~(231~~52,843	)
Operating income (loss)				24,269			(13,806	)		93,037			(5,159	)
Operating income				106,722			91,412			82,453			105,218
Finance income		26		814,~~914~~027			612,~~200~~621			35,~~592~~113			36,~~385~~421
Finance cost		26		(~~344~~449,~~342~~971	)		(~~125~~217,~~112~~423	)		(77105,~~790~~629	)		(6892,~~147~~311	)
Net financial results				(~~335~~435,~~428~~944	)		(~~118~~204,~~912~~802	)		(74100,~~198~~516	)		(6485,~~762~~890	)
Debt restructuring result				—			757,470			—			—
Result before income tax				(~~311~~329,~~159~~222	)		~~624~~644,~~752~~080			(18,~~839~~063	)		~~(69~~19,~~921~~328	)
Income tax and minimum presumed income tax		27		(2225,~~875~~322	)		(~~227~~237,~~105~~911	)		(92,~~849~~447	)		20(10,~~968~~806	)
Net result for the period				(~~334~~354,~~034~~544	)		~~397~~406,~~647~~169			8(20,~~990~~510	)		~~(48~~8,~~953~~522	)
Other comprehensive result				—			—			—			—
Net and comprehensive result for the period				(~~334~~354,~~034~~544	)		~~397~~406,~~647~~169			8(20,~~990~~510	)		~~(48~~8,~~953~~522	)
Net and comprehensive result for the period attributable to controlling interest				(~~333~~354,~~205~~311	)		~~397~~405,~~726~~190			7(21,~~578~~105	)		~~(48~~7,~~525~~464	)
Net and comprehensive result for the period attributable to non-controlling interest				(~~829~~233	)		~~(79~~979	)		~~1,412~~595			~~(428~~1,058	)
Net and comprehensive result for the period				(~~334~~354,~~034~~544	)		~~397~~406,~~647~~169			8(20,~~990~~510	)		~~(48~~8,~~953~~522	)
Net result per share
Basic and diluted		28		(0.5962	)		0.7071			(0.0104	)		(0.0901	)

The accompanying notes 1 to 29 are an integral part of and should be read together with these statements.

David Tezanos Gonzalez

Chairperson

METROGAS S.A.

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDER’S EQUITY

FOR THE ~~SIX~~NINE MONTHS PERIOD ENDED ~~JUNE~~SEPTEMBER 30, 2014 AND 2013 (Stated in thousands of pesos)

	Issuedcapital		Adjustment toissued capital			Legal reserve			Unappropriatedretainedearnings			Attributable tothe owners of theparent			Attributable toNon-controllinginterest			TotalShareholders’Equity
Balance as of December 31, 2012		569,171		684,769			45,376			(1,133,018	)		166,298			989			167,287
Net and comprehensive result for the six months period ended June 30, 2013		—		—			—			397,726			397,726			(79	)		397,647
Net and comprehensive result for the nine months period ended September 30, 2013		—		—			—			405,190			405,190			979			406,169
Balance as of June 30, 2013		569,171		684,769			45,376			(735,292	)		564,024			910			564,934
Balance as of September 30, 2013		569,171		684,769			45,376			(727,828	)		571,488			1,968			573,456
Net and comprehensive result for the six months period ended December 31, 2013		—		—			—			(142,790	)		(142,790	)		1,973			(140,817	)
Net and comprehensive result for the three months period ended December 31, 2013		—		—			—			(150,254	)		(150,254	)		915			(149,339	)
Balance as of December 31, 2013		569,171		684,769			45,376			(878,082	)		421,234			2,883			424,117
Mandatory capital stock reduction, as decided by the General Shareholders’ Meeting of April 28, 2014		—		(684,769	)		(45,376	)		730,145			—			—			—
Net and comprehensive result for the six months period ended June 30, 2014		—		—			—			(333,205	)		(333,205	)		(829	)		(334,034	)
Net and comprehensive result for the nine months period ended September 30, 2014		—		—			—			(354,311	)		(354,311	)		(233	)		(354,544	)
Balance as of June 30, 2014		569,171		—			—			(481,142	)		88,029			2,054			90,083
Balance as of September 30, 2014		569,171		—			—			(502,248	)		66,923			2,650			69,573

The accompanying notes 1 to 29 are an integral part of and should be read together with these statements.

David Tezanos Gonzalez

Chairperson

METROGAS S.A.

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE ~~SIX~~NINE MONTHS PERIOD ENDED ~~JUNE~~SEPTEMBER 30, 2014 AND 2013

(Stated in thousands of pesos).

	06.30.14			06.30.13
	09.30.14			09.30.13
Cash Flows generated by operating activities
Net result for the period		(~~334~~354,~~034~~544	)		~~397~~406,~~647~~169
Adjustments to reconcile net results to cash flows provided by operating activities
Income tax		22,875			227,105
Income tax and MPIT		25,322			237,911
Income from sales of investment properties		(8,067	)		—
Depreciation of properties, plant and equipment and investment properties		4264,~~671~~657			3960,~~692~~216
Net book value of disposals of properties, plant and equipment		~~632~~3,463			47,~~885~~238
Charge on provisions		1842,~~665~~701			9(38,~~657~~645	)
Debt restructuring result (2)		—			(770,360	)
Net financial results		~~334~~434,~~546~~109			~~118~~205,~~013~~385
Changes in assets and liabilities
Trade receivables		(~~399~~607,~~424~~968	)		(~~132~~166,~~543~~449	)
Other receivables		(2440,~~861~~434	)		(474,~~492~~599	)
Trade payable		~~361~~429,~~552~~012			~~255~~327,~~416~~685
Salaries and social security		832,~~735~~943			(212,~~264~~774	)
Income tax and MPIT liability		(430,~~702~~776	)		(1221,~~329~~759	)
Other taxes payable		2447,~~432~~836			1635,~~403~~684
Provisions		—			(516	)
Other accounts payable		1824,~~844~~748			~~398~~1,029
Income tax and minimum presumed income tax paid in the period		(16,434	)		(933	)
Reorganization liabilities		(469	)		—
Net cash flows generated by operating activities		45,430			103,290
Income tax and minimum presumed income tax paid in the period		(21,722	)		(3,190	)
Net cash flows generated by operating activities		40,811			289,073
Cash flows used in investing activities
Increase in properties, plant and equipment		(72125,~~372~~417	)		(70118,~~579~~609	)
Proceeds from sales of investment properties		58,~~548~~295			—
Net cash flows used in investing activities		(66117,~~824~~122	)		(70118,~~579~~609	)
Cash flows generated by (used in) financing activities
Proceeds from loans		90,000			—
Payments of interests		(3738,~~887~~123	)		(3,109	)
Net cash flows generated by (used in) financing activities		5251,~~113~~877			(3,109	)
Net increase in cash and cash equivalents		30,719			29,602
Net (decrease) increase in cash and cash equivalents		(24,434	)		167,355
Cash and cash equivalents at the beginning of year		116,592			153,208
Exchange differences on cash and cash equivalents		1,~~238~~416			(1,~~604~~508	)
Cash and cash equivalents at the end of the period (1)		~~148~~93,~~549~~574			~~181~~319,~~206~~055
Net increase in cash and cash equivalents		30,719			29,602
Net (decrease) increase in cash and cash equivalents		(24,434	)		167,355

(1) As of ~~June~~September 30, 2014 and 2013, funds collected and pending to be deposited for Trust Funds, Resolution I-2621/2013 and Trust Fund Decree No. 2407 amount to Ps. ~~126~~137,~~403~~597 thousand and Ps. 5086,~~789~~744 thousand, respectively.

(2)	Exclude debt restructuring expenses for Ps. 12,890 thousand.

The main transactions that do not generate cash movements are described in Note 17.

The accompanying notes 1 to 29 are an integral part of and should be read together with these statements.

David Tezanos Gonzalez

Chairperson

METROGAS S.A.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE ~~SIX~~NINE MONTHS PERIOD ENDED AS OF ~~JUNE~~SEPTEMBER 30, 2014 AND COMPARATIVE INFORMATION

(amounts in thousands of pesos, except where expressly stated otherwise)

1.	GENERAL INFORMATION

MetroGAS S.A. (“MetroGAS” or the “Company”) is a sociedad anónima organized under the laws of the Republic of Argentina. The registered office and principal place of business is located at Gregorio Aráoz de Lamadrid 1360 – Ciudad Autónoma de Buenos Aires.

The Company was formed in 1992 and on December 1, 1992 it was registered as a corporation pursuant the laws of the Republic of Argentina under number 11,670, Book 112, Volume A of Sociedades Anónimas. The term of duration of the Company expires on December 1, 2091 and its principal business is the provision of natural gas distribution services.

On November 2, 1994, the Argentine Securities Commission (“CNV”), pursuant to Resolution No. 10,706, authorized to public offering all the Company’s outstanding shares that at such date composed the capital stock. American Depositary Shares (“ADSs”) were issued in the United States and were registered with the Securities and Exchange Commission (“SEC”). The Shares of the Company are listed on Buenos Aires Stock Exchange (“BCBA”) and its ADSs on the New York Stock Exchange (“NYSE”), respectively. On June 17, 2010, the NYSE informed that MetroGAS ADSs had been suspended from trading as a result of the Company’s filing for reorganization proceeding. At the time of issuance of these financial statements the NYSE keeps the suspension of MetroGAS’ADSs trading.

MetroGAS’ controlling shareholder is Gas Argentino S.A. (“Gas Argentino”) whose principal business is the investment. As of ~~June~~September 30, 2014, the controlling shareholder of Gas Argentino S.A. is YPF S.A. (“YPF”) through its subsidiary YPF Inversora Energética S.A (“YIESA”).

MetroGAS controls MetroEnergía S.A. (“MetroEnergía”) a sociedad anónima formed under the laws of Argentina, whose principal business is the sale of natural gas and/or transport on its own behalf or on account of third parties in Argentina.

With respect to General Resolution No. 629 of “Comisión Nacional de Valores, (“CNV”), please be informed that the backup documents of the Company’s operations are filed with Iron Mountain warehouse at Amancio Alcorta 2482, City of Buenos Aires.

2.	ECONOMIC AND FINANCIAL POSITION AND REGULATORY FRAMEWORK

The changes in the economic conditions of the country and the amendments introduced by the Public Emergency Law towards the end of 2001, have impacted the economic and financial position of the Company affected by the suspension of the original regime of tariffs adjustment, added to the increase in the operating costs to maintain the quality of service.

The Company is under a renegotiation process of certain terms of the License with the Argentine Government in order to oppose the negative impact produced by the mentioned circumstances.

In this context, as of ~~June~~September 30, 2014, the Company registered cumulative losses amounting to Ps. ~~481~~502,~~142~~248 thousand and consolidated negative working capital to Ps. ~~239~~228,~~201~~532 thousand.

In Note 2 of the consolidated financial statements as of December 31, 2013 the aspects related to the economic and financial situation and regulatory framework are described.

There follow are described the significant developments occurred during the six months period ended June 30, 2014.

METROGAS S.A.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE ~~SIX~~NINE MONTHS PERIOD ENDED AS OF ~~JUNE~~SEPTEMBER 30, 2014 AND COMPARATIVE INFORMATION

(amounts in thousands of pesos, except where expressly stated otherwise)

In Note 2 of the consolidated financial statements as of December 31, 2013 the aspects related to the economic and financial situation and regulatory framework are described.

There follow are described the significant developments occurred during the nine months period ended September 30, 2014.

2.1

Tariff Renegotiation

On March 26, 2014, within the process of renegotiation of utilities contracts pursuant to Law No. 25561 and supplementary rules, the Company signed a Provisional Agreement with the Unit for the Renegotiation and Analysis of Utility Contracts (“UNIREN”) whereby a provisional tariff regime was agreed in order to obtain additional funds to those resulting from the enforcement of ENARGAS Resolution No. I/2407 dated December 27, 2012, that established the collection of a fixed amount per invoice depending on the customers’ category, which should be transferred to a trust fund especially created for the execution of works. The amounts the Company collects pursuant to the mentioned Resolution have been considered payments on account in relation with the adjustments as set forth by Temporary Agreement approved by Decree No. 234 dated March 26, 2009.

The Provisional Agreement, ratified by Decree No. 445/2014 dated April 1, 2014 and published in the Official Gazette on April 7, 2014, establishes a provisional tariff regime as from April 1, 2014, consisting in readjust prices and tariffs considering the guidelines necessary to maintain the continuity of service and also sets forth common criteria applicable to all distribution licensees, in accordance with tariff regulations in force, and including changes in the gas price at the transmission system entry point.

The Provisional Agreement also contemplates the inclusion of pass through to tariffs resulting from changes in tax rules, except for the income tax, in accordance with a currently pending resolution. It also includes clauses related to costs oversight tariff revision based on operation and investment cost structure, and price indexes representative of such costs, which under certain premises triggers a revision procedure through which ENARGAS would assess the actual scale of variations in the licensee’s operating and investment costs, and thereby determine whether a distribution tariff adjustment is applicable.

The Provisional Agreement also provides that, from the execution date to December 21, 2015 (the date on which Law No. 25561 expires), UNIREN on behalf of the Grantor and the licensee shall reach a consensus with respect to the methodology, terms and timeline for the signing of the “Acta Acuerdo de Renegociación Contractual Integral” (the Comprehensive Contract Renegotiation Memorandum of Understanding).

On March 27, 2014, the National Government announced the reallocation of subsidies and on March 31, 2014 the Energy Secretariat (“ES”) issued ES Resolution No. 226/14 pursuant to which new natural gas prices and a plan to encourage responsible use of the natural gas were established.

Within this framework, new natural gas prices are established for Residential customers and for small general service customers for each of the production basins and user categories. These new prices will be applied by a mechanism of comparing consumption of same two-month/month period of current and previous year. Furthermore, a three-stage price revision is established to take effect on April 1, 2014, June 1, 2014 and August 1, 2014. For those customers that reduce their consumption over 20%, basin prices as of March 31, 2014 as per ES Resolution No. 1417/2008 will remain the same. Customers whose reduction in consumption is between 5% and 20% will have a special and lower basin natural gas price compared to the price applied to those customers not able to reduce consumption or whose reduction is below 5%.

METROGAS S.A.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE ~~SIX~~NINE MONTHS PERIOD ENDED AS OF ~~JUNE~~SEPTEMBER 30, 2014 AND COMPARATIVE INFORMATION

(amounts in thousands of pesos, except where expressly stated otherwise)

consumption over 20%, basin prices as of March 31, 2014 as per ES Resolution No. 1417/2008 will remain the same. Customers whose reduction in consumption is between 5% and 20% will have a special and lower basin natural gas price compared to the price applied to those customers not able to reduce consumption or whose reduction is below 5%.

Through Note ENRG/SD No. 03097 dated April 7, 2014, ENARGAS notified Resolution No. I/2851, from the same date, wherein new tariff charts are approved and are stated to take effect on April 1, 2014, June 1, 2014 and August 1, 2014. Such charts display changes in the final tariff of residential and full general service customers. These include changes in the gas price at the transmission system entry point, as a result of the application of the new prices per basin established by the aforementioned ES Resolution No. 226/14, the transportation tariff as a consequence of the new tariff chart effective for gas transportation companies that reflect the terms of their 2008 signed provisional agreements establish, and MetroGAS’ distribution margin after the signing of the Provisional Agreement.

In accordance with the price scheme established by the Energy Secretariat through ES Resolution No. 226/14, three tariff levels are established for each period, which are to be applied to customers according to their consumption in a month/two-month period in relation to the same period of the previous year.

Customers that register a decrease in consumption of over 20% will continue with the same tariff level as that in effect until March 31, 2014. Customers that achieve a reduction between 5% and 20% will be charged a tariff approximately 50% lower in relation with the actual price variation, which will be applied to customers unable to reduce their consumption or whose reduction is below 5%.

Furthermore, ENARGAS establishes that tariff charts applicable until March 31, 2014 shall still be applied to essential users (health care, public education religious institutions, etc.); and consumers eligible pursuant to Notes MPFIPyS N° 10/2009 from the Ministry of Federal Planning, Public Investment and Services dated August 13, 2009. Under that mechanism, the Licensee will also have different prices for the gas distribution service according to the customers’ consumption.

Through Note ENRG/SD No. 05747 dated May 13, 2014, ENARGAS notified on Resolution No. I/2904 from same date, whereby the methodology for the determination of user’s category based gas supply as from of April 1^st, 2014 is approved.

Considering the aforementioned, the real impact will depend on a variable beyond the Company’s control, which is the reduction in consumption customers may have, which also will not only depend on their individual actions aimed at reducing the use of gas, but also on the effects of weather factors among others on the compared periods.

However, based on the Company´s estimates, the effect of the tariff increases would enable MetroGAS to continue operating as a going concern.

METROGAS S.A.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE ~~SIX~~NINE MONTHS PERIOD ENDED AS OF ~~JUNE~~SEPTEMBER 30, 2014 AND COMPARATIVE INFORMATION

(amounts in thousands of pesos, except where expressly stated otherwise)

2.2

Injunctions

On October 9, 2014, notice was served on MetroGAS of an injunction ordered by the Judge of First Instance of Avellaneda, which provided for the urgent, unfailing and immediate suspension within the jurisdiction of Avellaneda of the tariff increases mentioned in Resolution SE 226/2014 and Resolution ENARGAS 2851/2014, and further instructed that future invoices should consider rates effective as at March 31, 2014.

On October 10, 2014, MetroGAS filed a document with the competent court claiming partial notification in detriment of the defense in court, incompetence and illegitimate behavior, and requested the interruption of the deadlines to make appeals and the dismissal of the action as inadmissible.

On October 15, 2014, MetroGAS filed an appeal against the injunction and alleged the proceedings were null and void.

On October 21, 2014, MetroGAS filed a claim with the Administrative Court of Appeals in La Plata against the resolution that admitted the appeal without suspension of judgment.

On October 24, 2014, the Ombudsman of Avellaneda submitted a document to the Court of First Instance No. 9 in which he waived the injunction and requested the injunctive relief ordered on October 8, 2014, be dismissed. That same day both MetroGAS and the Planning Ministry agreed to the Ombudsman’s request.

Since the file had already been sent to the Administrative Court of Appeals in La Plata, the Court informed MetroGAS that, prior to ruling on this dismissal, the parties should wait for the file to be returned by the Court.

On October 27, 2014, MetroGAS submitted a document to the Administrative Court of Appeals in La Plata to report the dismissal of the proceedings by the Ombudsman and request the urgent return of the file to the Court of First Instance No. 9.

That same day notice was served upon MetroGAS from the Court of First Instance No. 9 with a copy of the (i) original claim lodged by the Ombudsman of Avellaneda and (ii) the court resolution dated October 8 which ordered the injunction.

Due to the late notice, originated before the dismissal of the Ombudsman, on October 29, 2014, MetroGAS presented a request to the Court of First Instance to suspend the process deadlines to answer the claim until the issue of the dismissal is solved.

At the time these financial statements are issued, MetroGAS is awaiting (i) the decision of the Administrative Court of Appeals in La Plata about the complaint, and (ii) of the Court of First Instance No. 9 about the dismissal of the Ombudsman’s action and the documents submitted by MetroGAS in that respect.

METROGAS S.A.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS PERIOD ENDED AS OF SEPTEMBER 30, 2014 AND COMPARATIVE INFORMATION

(amounts in thousands of pesos, except where expressly stated otherwise)

2.3

New System for the Resolution of Consumption Conflicts

Law 26,993 about Resolution of Consumption Conflicts, which partially amends Law 24,240 of Consumer Defense, was enacted on September 17, 2014. The new Law 26,993 establishes specific rules which will govern the administrative and judicial proceedings for claims based on the protection of user and/or consumer rights. Therefore, and depending on the amount and purpose of the claim, the Law determines: (i) a Prior Settlement System in Consumption Relationships for claims below the equivalent amount of 55 minimum, vital and mobile wages (“SMVM”) and, (ii) an audit in Consumption Relationships for claims about responsibility for damage, as provided for in Chapter X of Title I of Law 24,240, not above the equivalent value of 15 SMVM. Finally, Law 26,993 establishes the creation of a special jurisdiction which, through its own process regulations, will deal with claims made for non-fulfillment of Law 24,240, not above the value equivalent to 55 SMVM.

METROGAS S.A.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS PERIOD ENDED AS OF SEPTEMBER 30, 2014 AND COMPARATIVE INFORMATION

(amounts in thousands of pesos, except where expressly stated otherwise)

3.	BASIS FOR PRESENTATION OF CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

These consolidated financial statements have been issued in accordance with the Technical Resolution (“TR”) No. 26 and 29 of the Argentine Federation of Professional Councils in Economic Sciences (“FACPCE “”) which adopt the IFRS issued by the International Accounting Standards Board (“IASB”) for entities included in the public offer regime of Law No. 17,811 due to their capital stock or to their notes, or those that have applied to be included in said regime.

In accordance with Title IV of the Informative Periodic Regime, Chapter I, Informative Regime, Section I, General Dispositions, Article 1, point b.1) of CNV rules, the Company has opted for presenting its condensed interim separated financial statements in condensed foreseen in the International Accounting Standard (“IAS”) 34 “Interim Financial Reporting”.

These condensed interim consolidated financial statements are presented in thousands of pesos, except where expressly stated otherwise.

These condensed interim consolidated financial statements should be read together with the Company’s annual financial statements as of December 31, 2013 and comparatives.

The consolidated statement of profit and loss and other comprehensive income and the consolidated statement of cashflow for the ~~six~~nine-month period finished on ~~June~~September 30, 2013, submitted for comparison purposes, include certain reclassifications in order to state them on a uniform basis with the statements as at December 31, 2013 and the current period.

These condensed interim consolidated financial statements have been approved by the Board of Directors for issuance on ~~August~~November 63, 2014.

The condensed interim consolidated financial statements for the ~~six~~nine months periods ended ~~June~~September 30, 2014 and 2013 have not been audited. In the Company’s opinion these financial statements reflect all the adjustments necessary to be presented on a basis consistent with the annual consolidated financial statements.

4.	ACCOUNTING POLICIES

The accounting policies adopted for these condensed interim consolidated financial statements are consistent with the ones applied in the financial statements for the fiscal year ended on December 31, 2013 which are detailed in Note 4 to those financial statements.

911

METROGAS S.A.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE ~~SIX~~NINE MONTHS PERIOD ENDED AS OF ~~JUNE~~SEPTEMBER 30, 2014 AND COMPARATIVE INFORMATION

(amounts in thousands of pesos, except where expressly stated otherwise)

5.	CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS

Preparation of consolidated financial statements as of a specified date requires that the Company makes estimates and judgments that affect the amount of recorded assets and liabilities and of contingent assets and liabilities disclosed at such date, as well as expenses and revenues for the period. The Direction of the Company makes estimates in order to be able to calculate at a specified time, for instance, the allowance for doubtful accounts, depreciation, recoverable value of assets, income tax charges and provision for contingencies. Actual future results may differ from the estimates and assessments made at the date of preparation of these condensed interim consolidated financial statements.

For the preparation of these condensed interim consolidated financial statements, the key judgments made by the Company when applying its accounting policies and the sources of information used for the respective estimates are consistent with those that were applied in the consolidated financial statements for the fiscal year ended on December 31, 2013, which are detailed in Note 5 to those financial statements.

6.	FINANCIAL RISK MANAGEMENT

The business of the Company exposes the Company to various financial risks: market risk, credit risk and liquidity risk. No significant changes have occurred during the ~~six~~nine-month period ended on ~~June~~September 30, 2014 in relation to financial risk factors and management policies with respect thereto, which are detailed in ~~Note~~ Note 6 to the consolidated financial statements as of December 31, 2013.

7.	FINANCIAL INSTRUMENTS

The tables below show the amounts carried for financial assets and financial liabilities by category of financial instrument, and a reconciliation with the line shown in the statement of financial position, as it may correspond.

06.30.14

09.30.14

Financial assetscarried at amortisedcost

Financial assets atfair value throughprofit or loss

Total financialassets

Trade receivables

~~738~~937,~~729~~444

—

~~738~~937,~~729~~444

Other receivables

6275,~~374~~200

—

6275,~~374~~200

Cash and cash equivalents

9848,~~811~~341

4945,~~738~~233

~~148~~93,~~549~~574

Total

~~899~~1,~~914~~060,985

4945,~~738~~233

~~949~~1,~~652~~106,218

Financial liabilitiescarried at amortisedcost

Financial liabilities atfair value

Total financialliabilities

Reorganization liabilities

1716,~~214~~521

—

1716,~~214~~521

Trade payable

~~823~~890,~~141~~601

—

~~823~~890,~~141~~601

Other accounts payable

2935,~~595~~499

—

2935,~~595~~499

Financial debt

1,~~341~~441,~~470~~302

—

1,~~341~~441,~~470~~302

Total

2,~~211~~383,~~420~~923

—

2,~~211~~383,~~420~~923

1012

METROGAS S.A.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE ~~SIX~~NINE MONTHS PERIOD ENDED AS OF ~~JUNE~~SEPTEMBER 30, 2014 AND COMPARATIVE INFORMATION

(amounts in thousands of pesos, except where expressly stated otherwise)


	12.31.13
	Financial assets carried at amortised cost		Financial assets at fair value through profit or loss		Total financial assets
Trade receivables		339,257		—		339,257
Other receivables		32,191		—		32,191
Cash and cash equivalents		62,976		53,616		116,592

Total		434,424		53,616		488,040


	Financial liabilities carried at amortised cost		Financial liabilities at fair value		Total financial liabilities
Reorganization liabilities		17,040		—		17,040
Trade payable		461,589		—		461,589
Other accounts payable		10,751		—		10,751
Financial debt		953,124		—		953,124

Total		1,442,504		—		1,442,504

8.	INTERESTS IN SUBSIDIARIES

The table below shows the Company’s consolidated controlling interest:

Directly controlled company	Percentage of capital stock andvoting rights held
	06.30.14			12.31.13
	09.30.14			12.31.13
MetroENERGÍA		95	%		95	%

Accounting policies of subsidiaries have been changed, where necessary, to ensure consistency with the policies adopted by the Company.

MetroENERGÍA’s corporate purpose is to carry out purchase and sales transactions and/or transportation services of natural gas for its own account, on behalf of or in association with third parties.

We have used the latest financial statements available at the end of every period or fiscal year of the Company.

The shareholders representing the Non-controlling interest decided at the General Ordinary Shareholders’ Meeting, dated March 26, 2014, to maintain their commitment by means of which they have renounced for the collection of dividends for as long as the financial debt of MetroGAS S.A. arising as a result of the restructuring and/or refinancing of the outstanding debt is cancelled, pursuant to which the dividends approved to Ps. 57,341 thousand shall be paid in full to the major shareholder, MetroGAS.

11According to the provisions of MetroENERGÍA’s Board of Directors on March 26, 2014, considering cashflow availability and the financial conditions of the business, total dividends for

METROGAS S.A.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE ~~SIX~~NINE MONTHS PERIOD ENDED AS OF ~~JUNE~~SEPTEMBER 30, 2014 AND COMPARATIVE INFORMATION

(amounts in thousands of pesos, except where expressly stated otherwise)

the amount of Ps. 8,000 thousands were made available to the company’s main shareholder, MetroGAS, and cancelled in August 2014. The minority shareholder has waived collection of those dividends.

9.	SEGMENT REPORTING

Operating segments are reported in a manner consistent with the internal reporting prepared by the Chief Operating Decision Maker, for the purpose of resource allocation and performance assessment of the segment.

The primarily segments operated by the Company relate to the provision of the service of distribution of gas and, through MetroENERGÍA, of commercialization and/or transportation of natural gas for its own account, on behalf of or, in association with third parties.

	06.30.14
	09.30.14
	MetroGASDistribution			MetroENERGIATrading			Eliminations			Total
Revenues		~~766~~1,~~486~~551,608			~~612~~1,~~605~~029,315			(710,~~925~~486	)		12,~~371~~570,~~166~~437
Operating income (loss)		665			65,193			(41,589	)		24,269
Operating income		73,654			85,980			(52,912	)		106,722
Income on investments in companies		4152,~~589~~912			—			(4152,~~589~~912	)		—
Finance income		47,~~252~~492			46,~~662~~535			—			814,~~914~~027
Finance cost		(~~337~~438,~~213~~517	)		(711,~~129~~454	)		—			(~~344~~449,~~342~~971	)
Result before income tax		(~~332~~357,~~296~~371	)		6281,~~726~~061			(4152,~~589~~912	)		(~~311~~329,~~159~~222	)
Income tax and minimum presumed income tax		~~(909~~3,060	)		(2128,~~966~~382	)		—			(2225,~~875~~322	)
Total net and comprehensive result for the period		(~~333~~354,~~205~~311	)		4052,~~760~~679			(4152,~~589~~912	)		(~~334~~354,~~034~~544	)
Total assets		2,~~610~~804,~~130~~654			~~324~~319,~~026~~732			(~~104~~106,~~617~~611	)		23,~~829~~017,~~539~~775
Total liabilities		2,~~522~~737,~~101~~731			~~282~~266,~~955~~742			(6556,~~600~~271	)		2,~~739~~948,~~456~~202
Depreciation of PP&E and investment properties		(4264,~~671~~657	)		—			—			(4264,~~671~~657	)
Increase in PP&E		72125,~~372~~417			—			—			72125,~~372~~417
Investments in subsidiaries		3950,~~017~~340			—			(3950,~~017~~340	)		—
	06.30.13
	09.30.13
	MetroGASDistribution			MetroENERGIATrading			Eliminations			Total
Revenues		~~562~~962,~~710~~001			~~294~~496,~~423~~019			(78,~~558~~650	)		~~849~~1,~~575~~449,370
Operating income (loss)		(24,844	)		29,011			(17,973	)		(13,806	)
Operating income		67,661			61,813			(38,062	)		91,412
Income on investments in companies		1738,~~973~~062			—			(1738,~~973~~062	)		—
Finance income		38,~~934~~538			24,~~266~~083			—			612,~~200~~621
Finance cost		(~~121~~211,~~364~~590	)		(35,~~748~~833	)		—			(~~125~~217,~~112~~423	)
Result before income tax		~~615~~622,~~196~~079			2760,~~529~~063			(1738,~~973~~062	)		~~624~~644,~~752~~080
Income tax and minimum presumed income tax		(~~217~~216,~~470~~889	)		(921,~~635~~022	)		—			(~~227~~237,~~105~~911	)
Total net and comprehensive result for the period		~~397~~405,~~726~~190			1739,~~894~~041			(1738,~~973~~062	)		~~397~~406,~~647~~169
Total assets		2,~~370~~495,~~299~~441			~~144~~185,~~540~~652			(6681,~~999~~431	)		2,~~447~~599,~~840~~662
Total liabilities		1,~~806~~923,~~275~~953			~~126~~146,~~335~~301			(4944,~~704~~048	)		12,~~882~~026,~~906~~206
Depreciation of PP&E and investment properties		(3960,~~692~~216	)		—			—			(3960,~~692~~216	)
Increase in PP&E		70118,~~579~~609			—			—			70118,~~579~~609
Investments in subsidiaries		1737,~~295~~383			—			(1737,~~295~~383	)		—

The accounting policies for these reporting segments are the same ones followed by the Company and detailed in Note 4 to the consolidated financial statements as of December 31, 2013.

1214

METROGAS S.A.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE ~~SIX~~NINE MONTHS PERIOD ENDED AS OF ~~JUNE~~SEPTEMBER 30, 2014 AND COMPARATIVE INFORMATION

(amounts in thousands of pesos, except where expressly stated otherwise)

10.

PROPERTIES, PLANT AND EQUIPMENT

MAIN ACCOUNT	ORIGINAL VALUE															DEPRECIATION									NETBOOK VALUE06-30-14			NETBOOK VALUE12-31-13
	ORIGINAL VALUE															DEPRECIATION
	ATBEGINNINGOFYEAR			INCREASES			TRANSFERS			RETIREMENTS			AT ENDOFPERIOD			ACCUMULATEDATBEGINNING OFYEAR		RETIREMENTS			INCREASES		ACCUMULATEDAT ENDOF PERIOD
MAIN ACCOUNT	AT BEGINNING OFYEAR			INCREASES			TRANSFERS			RETIREMENTS			AT END OFPERIOD			ACCUMULATED ATBEGINNING OFYEAR		RETIREMENTS			INCREASES		ACCUMULATED ATEND OF PERIOD		NETBOOK VALUE09-30-14			NETBOOK VALUE12-31-13
Land		15,654			—			—			—			15,654			—		—			—		—		15,654			15,654
Building and civil constructions		71,833			—			1,332			(1,165	)		72,000			27,559		(1,165	)		~~707~~1,063		27,~~101~~457		44,~~899~~543			44,274
High pressure mains		296,067			—			24,549			—			320,616			199,800		—			23,~~379~~614		~~202~~203,~~179~~414		~~118~~117,~~437~~202			96,267
Medium and low pressure mains		1,910,404			—			3553,~~133~~824			—(5,743	)		1,~~945~~958,~~537~~485			645,791		—(3,127	)		2133,~~892~~002		~~667~~675,~~683~~666		1,~~277~~282,~~854~~819			1,264,613
Pressure regulating stations		82,456			—			171			—			82,627			44,216		—			12,~~380~~070		4546,~~596~~286		3736,~~031~~341			38,240
Consumption measurement installations		360,055			—			7,650			(13,~~606~~288	)		~~366~~364,~~099~~417			188,599		(~~952~~1,978	)		610,~~935~~417		~~194~~197,~~582~~038		~~171~~167,~~517~~379			171,456
Other technical installations		55,189			—			2,290			—			57,479			48,231		—			~~400~~617		48,~~631~~848		8,~~848~~631			6,958
Machinery, equipment and tools		30,797			—			1,603			—			32,400			27,374		—			~~346~~518		27,~~720~~892		4,~~680~~508			3,423
Computer and telecommunications equipment		226,673			—			916,~~639~~136			(7	)		~~236~~242,~~305~~802			180,926		(2	)		711,~~433~~573		~~188~~192,~~357~~497		4750,~~948~~305			45,747
Vehicles		13,215			—			—			—			13,215			10,309		—			~~465~~672		10,~~774~~981		2,~~441~~234			2,906
Furniture and fixtures		5,476			—			—			—			5,476			5,464		—			12		5,~~465~~466		1110			12
Materials		41,582			1427,~~441~~844			(1016,~~086~~778	)		(36,~~580~~905	)		4245,~~357~~743			—		—			—		—		4245,~~357~~743			41,582
Gas in pipelines		214			—			—			—			214			—		—			—		—		214			214
Work in progress		77,276			5797,~~931~~573			(73101,~~596~~055	)		—			6173,~~611~~794			—		—			—		—		6173,~~611~~794			77,276
Distribution network extensions constructed by third parties		67,454			—			110,~~315~~278			—			6877,~~769~~732			17,575		—			~~683~~1,044		18,~~258~~619		5059,~~511~~113			49,879
Subtotal		3,254,345			72125,~~372~~417			—			(617,~~358~~108	)		3,~~320~~362,~~359~~654			1,395,844		(26,~~119~~272	)		4264,~~621~~592		1,~~436~~454,~~346~~164		1,~~884~~908,~~013~~490			1,858,501
Allowance for obsolescence of materials		(3,183	)		(1,793	)		—			3,~~589~~602			(1,~~387~~374	)		—		—			—		—		(1,~~387~~374	)		(3,183	)
Allowance for disposal of properties, plant and equipment		(5,715	)		(12,~~680~~041	)		—			183,771			(73,~~377~~985	)		—		—			—		—		(73,~~377~~985	)		(5,715	)
Total as of June 30, 2014		3,245,447			68,899			—			(2,751	)		3,311,595			1,395,844		(2,119	)		42,621		1,436,346		1,875,249
Total as of September 30, 2014		3,245,447			121,583			—			(9,735	)		3,357,295			1,395,844		(6,272	)		64,592		1,454,164		1,903,131
Total as of December 31, 2013		3,103,668			159,227			—			(17,448	)		3,245,447			1,322,738		(7,862	)		80,968		1,395,844					1,849,603

As mentioned in Note 2.8.1 to the consolidated financial statements as of December 31, 2013, according to the license, a substantial portion of the Properties, plant and equipment are defined as “Essential Assets” and there are certain restrictions over them described in the mentioned note.

1315

METROGAS S.A.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE ~~SIX~~NINE MONTHS PERIOD ENDED AS OF ~~JUNE~~SEPTEMBER 30, 2014 AND COMPARATIVE INFORMATION

(amounts in thousands of pesos, except where expressly stated otherwise)

11.

INVESTMENT PROPERTIES

	ORIGINAL VALUE							DEPRECIATION												~~NETBOOK VALUE06-30-14~~		~~NETBOOK VALUE12-31-13~~
MAIN ACCOUNT	AT BEGINNING OFYEAR		DECREASE OFPERIOD			AT END OFPERIOD		ACCUMULATED ATBEGINNING OFYEAR		DECREASE OFPERIOD			ANNUAL RATE			INCREASES		ACCUMULATED ATEND OF PERIOD		NETBOOK VALUE09-30-14		NETBOOK VALUE12-31-13
Land		1,847		(1,118	)		729		—		—			—			—		—		729		1,847
Building		5,971		(2,922	)		3,049		2,479		(1,237	)		2.00	%		5065		1,~~292~~307		1,~~757~~742		3,492
Total as of June 30, 2014		7,818		(4,040	)		3,778		2,479		(1,237	)					50		1,292		2,486
Total as of September 30, 2014		7,818		(4,040	)		3,778		2,479		(1,237	)					65		1,307		2,471
Total as of December 31, 2013		7,818					7,818		2,359		—						120		2,479				5,339

1416

METROGAS S.A.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE ~~SIX~~NINE MONTHS PERIOD ENDED AS OF ~~JUNE~~SEPTEMBER 30, 2014 AND COMPARATIVE INFORMATION

(amounts in thousands of pesos, except where expressly stated otherwise)

12.

TRADE RECEIVABLES

	06.30.14			12.31.13
	09.30.14			12.31.13
Current
Trade receivables		~~325~~516,~~505~~166			231,514
Unbilled revenues		~~400~~426,~~365~~650			110,877
Related parties		2312,~~185~~001			1,366
Tax on banking transactions to be recovered		811,~~177~~904			9,875
Allowance for doubtful accounts		(1829,~~503~~277	)		(14,375	)
Total Current		~~738~~937,~~729~~444			339,257

The aging analysis of the trade receivables is as follows:

	06.30.14			12.31.13
	09.30.14			12.31.13
-Past due
under 3 months		6562,~~178~~104			37,476
from 3 to 6 months		1724,~~457~~002			5,620
from 6 to 9 months		10,~~883~~163			6,107
from 9 to 12 months		47,~~446~~357			2,051
from 1 to 2 years		45,~~108~~545			5,056
more than 2 years		12,~~588~~313			8,935
Subtotal		~~114~~121,~~660~~484			65,245
-Becoming due
under 3 months		~~636~~835,~~351~~562			280,980
from 3 to 6 months		23,~~167~~642			2,469
from 6 to 9 months		23,~~150~~057			2,469
from 9 to 12 months		12,~~904~~976			2,469
Subtotal		~~642~~845,~~572~~237			288,387
Allowance for doubtful accounts		(1829,~~503~~277	)		(14,375	)
Total		~~738~~937,~~729~~444			339,257

15The carrying amount of the Company’s trade receivables is denominated in the following currencies:


	09.30.14		12.31.13
Pesos		703,538		225,010
US Dollars (US$)		233,906		114,247

Total		937,444		339,257

METROGAS S.A.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE ~~SIX~~NINE MONTHS PERIOD ENDED AS OF ~~JUNE~~SEPTEMBER 30, 2014 AND COMPARATIVE INFORMATION

(amounts in thousands of pesos, except where expressly stated otherwise)

The carrying amount of the Company’s trade receivables is denominated in the following currencies:

	06.30.14		12.31.13
Pesos		539,213		225,010
US Dollars (US$)		199,516		114,247
Total		738,729		339,257

The roll forward of the allowance for doubtful accounts is as follow:

	06.30.14			12.31.13
	09.30.14			12.31.13
Balance at beginning of year		14,375			15,447
Revaluation of foreign currency		45,~~156~~101			—
Increases / recoveries (*)		~~(48~~9,781	)		6,148
Decreases		20			(7,220	)
Balance at end of period / year		1829,~~503~~277			14,375

(*)	Charged to Doubtfull account expenses (see Note 24. Expenses by nature)

13.

OTHER RECEIVABLES

	06.30.14		12.31.13
	09.30.14		12.31.13
Non current:
Related parties		45,~~943~~373		3,631
Social security and tax credits		23,~~742~~467		—
Advances and anticipated purchases of gas		43,~~202~~855		—
Expenses paid in advance		7349		2
Subtotal non current		1112,~~960~~744		3,633
Current:
Advances to employees		~~139~~408		233
Insurance paid in advance		~~431~~439		196
Expenses paid in advance		42,~~613~~556		1,035
Trust Fund Decree No. 2407		21,~~601~~506		17,098
Social security and tax credits		~~255~~6,505		200
Expenses recoverable		31,~~123~~769		793
Related parties		~~672~~468		615
Advances to suppliers		215,~~563~~302		2,911
Advances and anticipated purchases of gas		2713,~~076~~219		—
Miscellaneous		820,~~941~~284		5,477
Subtotal current		5062,~~414~~456		28,558
Total		6275,~~374~~200		32,191

1618

METROGAS S.A.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE ~~SIX~~NINE MONTHS PERIOD ENDED AS OF ~~JUNE~~SEPTEMBER 30, 2014 AND COMPARATIVE INFORMATION

(amounts in thousands of pesos, except where expressly stated otherwise)

The aging analysis of the other receivables is as follows:

	06.30.14		12.31.13
	09.30.14		12.31.13
-Past due
under 3 months		26,~~967~~785		4,661
from 3 to 6 months		~~330~~2,496		134
from 6 to 9 months		~~125~~3,032		156
from 9 to 12 months		~~101~~100		171
from 1 to 2 years		~~445~~394		415
more than 2 years		~~683~~728		479
Subtotal		413,~~651~~535		6,016
-Without due		22		22
-Becoming due
under 3 months		3847,~~087~~875		21,690
from 3 to 6 months		~~4,668~~680		478
from 6 to 9 months		~~2,914~~212		266
from 9 to 12 months		72132		86
from 1 to 2 years		4,~~275~~734		2
more than 2 years		78,~~685~~010		3,631
Subtotal		5761,~~701~~643		26,153
Total		6275,~~374~~200		32,191

The carrying amount of the Company’s other receivables is denominated in the following currencies:

	06.30.14		12.31.13
	09.30.14		12.31.13
Pesos		1661,~~891~~168		28,035
US$		45,456		4,156
US Dollars (US$)		13,803		4,156
Pound sterling		27229		—
Total		6275,~~374~~200		32,191

1719

METROGAS S.A.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE ~~SIX~~NINE MONTHS PERIOD ENDED AS OF ~~JUNE~~SEPTEMBER 30, 2014 AND COMPARATIVE INFORMATION

(amounts in thousands of pesos, except where expressly stated otherwise)

14.

CASH AND CASH EQUIVALENTS

In order to be considered for the consolidated statements of cash flows, cash and cash equivalents is as follows:

	06.30.14		12.31.13
	09.30.14		12.31.13
Cash and banks		9848,~~811~~341		62,976
Mutual funds		4945,~~738~~233		53,616
Total		~~148~~93,~~549~~574		116,592

The carrying amount of the Company’s cash and cash equivalents is denominated in the following currencies:

	06.30.14		12.31.13
	09.30.14		12.31.13
Pesos		~~146~~91,~~693~~663		115,078
US$		1,751		1,431
US Dollars (US$)		1,808		1,431
Pound sterling		5554		43
Euros		3332		27
Reales		17		13
Total		~~148~~93,~~549~~574		116,592

As of ~~June~~September 30, 2014 and December 31, 2013, fund collected and pending to be deposit for Trust Funds, Resolution I-2621/2013 and Trust Fund Decree No. ~~2407amount~~2407 amount to Ps. ~~126~~137,~~403~~597 thousand and Ps. 77,273 thousand, respectively.

15.

SHAREHOLDERS’ EQUITY AND ISSUED CAPITAL

As of ~~June~~September 30, 2014, the capital stock of ~~MetroGas~~ MetroGas amounts to Ps. 569,171 thousand, which is fully subscribed, registered and paid-in and it is composed of the following classes of shares:

Classes of shares	Subscribed,registered andpaid in(thousands ofPs.)
Outstanding:
Common certified shares, of Ps. 1 par value and 1 vote each:
Class “A”		290,277
Class “B”		221,977
Class “C”		56,917
Capital Stock at 06.30.14		569,171
Capital Stock at 09.30.14		569,171

1820

METROGAS S.A.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE ~~SIX~~NINE MONTHS PERIOD ENDED AS OF ~~JUNE~~SEPTEMBER 30, 2014 AND COMPARATIVE INFORMATION

(amounts in thousands of pesos, except where expressly stated otherwise)

MetroGAS’ shareholders decided at the Shareholders meeting held on the 28th of April of 2014 to proceed to a mandatory reduction of the company’s issued capital. Therefore, negative retained earnings corresponding to the business year ended on December 31, 2013 were partially affected against the Legal reserve for Ps.45,376 thousand and against Adjustments to issued capital for the sum of Ps. 684,769 thousand, keeping a negative balance of Ps.147,937 thousand in Unappropriated retained earnings as of such date, which added to the negative result for the ~~six~~nine months period ~~ended~~ ended on ~~June~~September 30, 2014 amounting to Ps. ~~333~~354,~~205~~311 thousand, yielded a total amount of Ps.~~481~~502,~~142~~248 thousand as of ~~June~~September 30, 2014 for Unappropriated retained earnings.

Notwithstanding the actions taken to revert the situation as of December 31, 2013 where the company is affected by the provisions of Clause 206 of the Law 19.550 (Corporations Law), should the negative results persist during 2014 the company will need to take additional measures to reestablish equity balance.

16.

OTHER TAXES PAYABLES

	06.30.14		12.31.13
	09.30.14		12.31.13
Non current:
Others taxes		7,~~324~~030		7,898
Total non current		7,~~324~~030		7,898
Current:
Value added tax		4333,~~384~~216		21,569
GCABA study, revision and inspection of works in public space levy		3437,~~663~~937		28,973
GNC Tax		45,~~631~~115		4,954
Turnover tax		1621,~~465~~640		6,365
Provincial and municipal taxes		3140,~~822~~966		29,140
Hydric infraestructure rate		23,~~841~~175		1,515
Others taxes		~~1,176~~812		1,641
Total current		~~134~~142,~~982~~861		94,157
Total		~~142~~149,~~306~~891		102,055

The carrying amount of the Company’s other taxes payables are denominated in pesos.

1921

METROGAS S.A.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE ~~SIX~~NINE MONTHS PERIOD ENDED AS OF ~~JUNE~~SEPTEMBER 30, 2014 AND COMPARATIVE INFORMATION

(amounts in thousands of pesos, except where expressly stated otherwise)

The aging analysis of other taxes payables is as follows:


	09.30.14		12.31.13
-Becoming due
under 3 months		142,800		85,607
from 3 to 6 months		—		2,850
from 6 to 9 months		61		2,850
from 9 to 12 months		—		2,850
from 1 to 2 years		878		987
more than 2 years		6,152		6,911

Subtotal		149,891		102,055

Total		149,891		102,055

17.

FINANCIAL DEBT

	06.30.14		12.31.13
	09.30.14		12.31.13
Non current:
Negotiable Obligations		1,~~216~~273,~~151~~408		931,351
Negotiable Obligations related parties		2729,~~911~~213		21,375
Total Non current		1,~~244~~302,~~062~~621		952,726
Current:
Negotiable Obligations Interest to be paid		~~552~~36,654		398
Related parties		96102,~~856~~027		—
Total Current		97138,~~408~~681		398
Total		1,~~341~~441,~~470~~302		953,124

The table below shows the changes occurred in the balance of financial debt as of ~~June~~September 30, 2014:

	06.30.14
	09.30.14			12.31.13
Balance at beginning of year		953,124			—
Proceeds from YPF loan		90,000
Initial recognition Notes at fair value as of 11 January, 2013		—			646,996
Notes of Late Verification		25
Proceeds from YPF loan		90,000			—
Accrued interest at effective interest rate - Notes (1)		92,375
Notes of Late Verification		25			—
Accrued interest on YPF loan		6,856
Accrued interest at effective interest rate - Notes (1)		141,364			115,298
Exchange loss		236,977
Accrued interest on YPF loan		12,027			—
Interest payment		(37,887	)
Exchange loss		282,885			221,117
Balance at end of period		1,341,470
Interest payment		(38,123	)		(30,287	)
Balance at end of period		1,441,302			953,124

(1)	Includes accrued interest on notes issued to YPF.

METROGAS S.A.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS PERIOD ENDED AS OF SEPTEMBER 30, 2014 AND COMPARATIVE INFORMATION

(amounts in thousands of pesos, except where expressly stated otherwise)

The aging analysis of financial debt is as follows:


	09.30.14		12.31.13
-Becoming due
under 3 months		36,654		398
from 3 to 6 months		51,859		—
from 6 to 9 months		50,168		—
more than 2 years		1,302,621		952,726

Subtotal		1,441,302		953,124

Total		1,441,302		953,124

Negotiable Obligations

Information related with negotiable obligations (“Notes”) is detailed in Note 17 to the consolidated financial statements as of December 31, 2013.

No event of default has occurred as of ~~June~~September 30, 2014. During the present period the Company has complied with the terms and covenants established under the Offering Circular.

On January 29, 2014, MetroGAS issued:

•

Notes of Capitalization

•

Additional Series A-L December 2013: U$S 3,516,500

•

Additional Series A-U December 2013: U$S 371,456

METROGAS S.A.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS PERIOD ENDED AS OF JUNE 30, 2014 AND COMPARATIVE INFORMATION

(amounts in thousands of pesos, except where expressly stated otherwise)

On April 28, 2014, the Board of Directors of MetroGAS decided by a majority of votes to pay in cash interest for up to U$S 4,750,000, capitalize the remaining amount of the portion subject to capitalization of interest due and payable on June 30, 2014 and issue Additional Negotiable Obligations for said capitalization.

On July 17, 2014, MetroGAS issued:

•

Notes of Capitalization

•

Additional Series A-L June 2014: U$S 3,516,500

•

Additional Series A-U June 2014: U$S 371,044

Having the limit date (June 30^th, 2014) been reached, and given the fact that no triggering events occurred, Class B Notes were cancelled and the company does not owe anything in relation to them.

METROGAS S.A.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS PERIOD ENDED AS OF SEPTEMBER 30, 2014 AND COMPARATIVE INFORMATION

(amounts in thousands of pesos, except where expressly stated otherwise)

Related parties

On December 12, 2013, the Board of Directors of MetroGAS unanimously approved an agreement that contemplated the opening of a credit facility with YPF. YPF’s credit facility proposal has a BADLAR cost plus an annual 6% spread. YPF makes available to MetroGAS a “Non-Committed” credit facility for up to Ps. 180,000,000 for a period of 180 days as from the date of the proposal. MetroGAS may require such drawdowns as it may deem advisable according to its needs up to the maximum amount of the credit facility and for the above mentioned period, and may make partial or total advance payments without penalty. Finally, an annual 10% default interest will be applied in the event of default. As of ~~June~~September 30, 2014 the Company has made use Ps. 90,000 thousand of this facility.

18.

REORGANIZATION LIABILITIES

	06.30.14		12.31.13
	09.30.14		12.31.13
Taxes payable		16,222		16,262
Non current:
Trade payables		655		181
Taxes payable		15,999		16,262
Salaries and social security		337		597
Trade payables		186		181
Total		17,214		17,040
Salaries and social security		336		597
Total Non current		16,521		17,040

The carrying amount of the Company’s reorganization liabilities are denominated in pesos.

2119. PROVISIONS

Provisions

Civil, labor and
other claims

Tax claims and
other fines

Regulatory claims
and interpretation
disagreements

Total

Balance at 12.31.13

37,877

9,027

11,400

58,304

Increases (recoveries) of the period (*)

15,380

13,706

—

29,086

Decreases of the period

(513

)

—

(513

)

Balance at 09.30.14

52,744

22,733

11,400

86,877

(*)	Charge to other income and expenses (see Note 25).

METROGAS S.A.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE ~~SIX~~NINE MONTHS PERIOD ENDED AS OF ~~JUNE~~SEPTEMBER 30, 2014 AND COMPARATIVE INFORMATION

(amounts in thousands of pesos, except where expressly stated otherwise)

19. PROVISIONS

Provisions	Civil, labor andother claims			Tax claims andother fines		Regulatory claimsand interpretationdisagreements		Total
Balance at 12.31.13		37,877			9,027		11,400		58,304
Increases (recoveries) of the period (*)		10,224			5,016		—		15,240
Decreases of the period		(492	)		—		—		(492	)
Balance at 06.30.14		47,609			14,043		11,400		73,052

(*) Charge to other income and expenses (see Note 25).

20.

TRADE PAYABLES

	06.30.14		12.31.13
	09.30.14		12.31.13
Gas and transportation creditors		~~379~~451,~~751~~819		187,097
Other purchases and services creditors		7181,~~718~~246		77,117
Trust Fund Decree No. 2407		2,~~200~~300		—
Trust Funds		~~124~~106,~~203~~504		77,147
Related parties		~~245~~219,~~269~~939		120,102
Resolution I-2621/2013		—28,793		126
Total		~~823~~890,~~141~~601		461,589

The carrying amount of the Company’s trade payables are denominated in the following currencies:

	06.30.14		12.31.13
	09.30.14		12.31.13
Pesos		~~669~~699,~~713~~697		388,536
U$S		~~153~~190,~~314~~738		72,963
Euros		~~100~~43		90
Pound sterling		14123		—
Total		~~823~~890,~~141~~601		461,589

22The aging analysis of the trade payables is as follows:


	09.30.14		12.31.13
-Past due
under 3 months		159,011		147,124
from 3 to 6 months		8,032		54,575
from 6 to 9 months		7,245		17,780
from 9 to 12 months		16,976		12,469
from 1 to 2 years		41,283		—
more than 2 years		90		90

Subtotal		232,637		232,038

-Becoming due
under 3 months		657,964		229,551

Subtotal		657,964		229,551

Total		890,601		461,589

METROGAS S.A.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE ~~SIX~~NINE MONTHS PERIOD ENDED AS OF ~~JUNE~~SEPTEMBER 30, 2014 AND COMPARATIVE INFORMATION

(amounts in thousands of pesos, except where expressly stated otherwise)

21.

SALARIES AND SOCIAL SECURITY

	06.30.14		12.31.13
	09.30.14		12.31.13
Salaries		42,~~838~~640		6,429
Social security		1511,~~480~~582		13,514
Related parties		36,~~965~~846		5,249
Vacation provision		35,991		22,855
Thirteenth month salary provision		8,395		—
Bonus provision		9,064		12,819
Vacation provision		42,874		22,855
Others		407		144
Bonus provision		20,113		12,819
Total		69,745		61,010
Others		1,503		144
Total		93,953		61,010

The carrying amount of the Company’s salaries and social security are denominated in pesos.

The aging analysis of the salaries and social security is as follows:


	09.30.14		12.31.13
-Becoming due
under 3 months		40,859		60,851
from 3 to 6 months		9,354		—
from 6 to 9 months		34,157		—
from 9 to 12 months		9,583		159

Subtotal		93,953		61,010

Total		93,953		61,010

22.

OTHER ACCOUNTS PAYABLE

	06.30.14		12.31.13
	09.30.14		12.31.13
Payables for works on behalf of third parties		27,319		8,475
Directors fees		180		—
Payables for works on behalf of third parties		32,797		8,475
ENARGAS’ Fines		2,276		2,276
Total		29,595		10,751
Miscellaneous		246		—
Total		35,499		10,751

The carrying amount of the Company’s other accounts payable is denominated in pesos.

METROGAS S.A.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS PERIOD ENDED AS OF SEPTEMBER 30, 2014 AND COMPARATIVE INFORMATION

(amounts in thousands of pesos, except where expressly stated otherwise)

The aging analysis of the other accounts payables is as follows:


	09.30.14		12.31.13
-Without due		12,005		10,751

-Becoming due
from 3 to 6 months		11,781		—
from 6 to 9 months		11,713		—

Subtotal		23,494		—

Total		35,499		10,751

23.

REVENUES

For the six months period ended

For the three months period ended

For the nine months period ended

For the three months period ended

06.30.14

06.30.13

06.30.14

06.30.13

09.30.14

09.30.13

09.30.14

09.30.13

Gas sales

~~659~~1,~~529~~377,047

~~388~~700,~~780~~170

~~511~~717,~~550~~518

~~238~~311,~~635~~390

MetroENERGÍA’s gas sales and transportation

~~600~~1,~~486~~012,302

~~287~~484,~~775~~973

~~353~~411,~~355~~817

~~155~~197,~~806~~198

Transportation and distribution services

91136,~~608~~715

87154,~~908~~451

4745,~~454~~107

3766,~~716~~543

Other sales

725,~~424~~553

1029,~~782~~628

118,~~844~~128

618,~~120~~846

Natural gas liquids processing

—1,807

6769,~~682~~102

—1,807

361,~~322~~420

MetroENERGÍA’s other revenues

1217,~~119~~013

611,~~648~~046

24,~~626~~894

34,~~517~~398

Total

12,~~371~~570,~~166~~437

~~849~~1,~~575~~449,370

~~916~~1,~~829~~199,271

~~478~~599,~~116~~795

2327

METROGAS S.A.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE ~~SIX~~NINE MONTHS PERIOD ENDED AS OF ~~JUNE~~SEPTEMBER 30, 2014 AND COMPARATIVE INFORMATION

(amounts in thousands of pesos, except where expressly stated otherwise)

24.

EXPENSES BY NATURE

	For the six months period ended
	For the nine months period ended
	06.30.14											06.30.13
	09.30.14											09.30.13
	OPERATINGCOSTS			ADMINISTRATIONEXPENSES		SELLINGEXPENSES			TOTAL			TOTAL
Payroll and other employees benefits		66103,~~499~~636			60102,~~039~~229		4472,~~839~~467			~~171~~278,~~377~~332			~~129~~205,~~283~~305
Social security contributions		1422,~~421~~651			915,~~923~~996		916,~~892~~084			3454,~~236~~731			2541,~~694~~248
Cost of natural gas		~~765~~1,~~098~~498,764			—		—			~~765~~1,~~098~~498,764			~~359~~645,~~179~~112
Transportation of natural gas and processed natural gas		~~112~~169,~~437~~823			—		—			~~112~~169,~~437~~823			~~104~~155,~~071~~527
Directors’ and members of Supervisory committee fees		—			~~876~~1,635		—			~~876~~1,635			~~702~~1,197
Fees for professional services		~~102~~156			46,~~303~~121		~~157~~322			46,~~562~~599			36,~~488~~343
Sundry materials		26,~~824~~451			—		—			26,~~824~~451			47,~~350~~213
Fees for sundry services		1118,~~899~~269			813,~~320~~439		2236,~~262~~548			4268,~~481~~256			3250,~~128~~876
Post and telephone		~~217~~434			12,~~592~~731		1526,~~432~~081			1729,~~241~~246			1321,~~497~~808
Leases		4719			~~959~~1,535		1,~~234~~759			23,~~240~~313			12,~~729~~650
Transportation and freight charges		—			13,~~901~~683		—			13,~~901~~683			12,~~261~~159
Office materials		~~582~~694			~~658~~1,379		99296			12,~~339~~369			12,~~238~~011
Travelling expenses		~~231~~409			~~202~~363		~~112~~199			~~545~~971			~~537~~845
Insurance premium		—			46,~~215~~705		1			46,~~216~~706			35,~~636~~858
Fixed assets maintenance		2544,~~700~~097			2233,~~502~~897		~~234~~1,066			4879,~~436~~060			3659,~~559~~322
PP&E and Investment properties depreciation		3452,~~533~~018			812,~~138~~639		—			4264,~~671~~657			3960,~~692~~216
Taxes, rates and contributions		1727,~~266~~300			2438,~~482~~236		4282,~~164~~400			83147,~~912~~936			90120,~~712~~887
Publicity		—			—		13,~~729~~331			13,~~729~~331			~~822~~1,421
Doubtful accounts		—			—		~~(48~~9,781	)		~~(48~~9,781	)		23,~~932~~503
Bank expenses and commissions		—			~~214~~406		611,~~152~~731			612,~~366~~137			59,~~807~~450
Others expenses		12,~~659~~879			~~132~~262		~~661~~816			23,~~452~~957			56,~~061~~847
Total as of June 30, 2014		1,053,515			148,456		144,920			1,346,891
Total as of September 30, 2014		1,947,600			241,256		262,882			2,451,738
Total as of June 30, 2013		643,058			98,821		120,499						862,378
Total as of September 30, 2013		1,056,963			159,537		193,298						1,409,798
	For the three months period ended
	06.30.14											06.30.13
	OPERATINGCOSTS			ADMINISTRATIONEXPENSES		SELLINGEXPENSES			TOTAL			TOTAL
Payroll and other employees benefits		35,505			33,716		24,501			93,722			73,491
Social security contributions		7,948			5,770		5,533			19,251			14,306
Cost of natural gas		511,937			—		—			511,937			213,918
Transportation of natural gas and processed natural gas		61,403			—		—			61,403			52,361
Directors’ and members of Supervisory committee fees		—			426		—			426			367
Fees for professional services		21			2,390		77			2,488			2,053
Sundry materials		(3,082	)		—		—			(3,082	)		2,112
Fees for sundry services		6,654			4,361		12,116			23,131			17,979
Post and telephone		129			886		8,303			9,318			7,504
Leases		19			484		639			1,142			950
Transportation and freight charges		—			1,043		—			1,043			688
Office materials		417			339		45			801			864
Travelling expenses		125			116		59			300			304
Insurance premium		—			2,149		1			2,150			1,768
Fixed assets maintenance		13,531			13,500		117			27,148			20,439
PP&E and Investment properties depreciation		17,349			4,284		—			21,633			19,952
Taxes, rates and contributions		9,118			13,341		29,862			52,321			47,550
Publicity		—			—		1,483			1,483			647
Doubtful accounts		—			—		329			329			2
Bank expenses and commissions		—			82		3,312			3,394			3,109
Others expenses		1,077			84		157			1,318			2,680
Total as of June 30, 2014		662,151			82,971		86,534			831,656
Total as of June 30, 2013		362,801			55,455		64,788						483,044

The expenses included in the above table are net of the Company’s own expenses capitalized in properties, plant and equipment for Ps. 6,482 thousand at June 30, 2014 and for Ps. 6,306 thousand at June 30, 2013.


	For the three months period ended
	09.30.14								09.30.13
	OPERATING COSTS		ADMINISTRATION EXPENSES		SELLING EXPENSES		TOTAL		TOTAL
Payroll and other employees benefits		37,137		42,190		27,628		106,955		76,022
Social security contributions		8,230		6,073		6,192		20,495		15,554
Cost of natural gas		733,666		—		—		733,666		285,933
Transportation of natural gas and processed natural gas		57,386		—		—		57,386		51,456
Directors’ and members of Supervisory committee fees		—		759		—		759		495
Fees for professional services		54		1,818		165		2,037		2,855
Sundry materials		3,627		—		—		3,627		2,863
Fees for sundry services		6,370		5,119		14,286		25,775		18,748
Post and telephone		217		1,139		10,649		12,005		8,311
Leases		-28		576		525		1,073		921
Transportation and freight charges		—		1,782		—		1,782		898
Office materials		112		721		197		1,030		773
Travelling expenses		178		161		87		426		308
Insurance premium		—		2,490		—		2,490		2,222
Fixed assets maintenance		18,397		11,395		832		30,624		22,763
PP&E and Investment properties depreciation		17,485		4,501		—		21,986		20,524
Taxes, rates and contributions		10,034		13,754		40,236		64,024		30,175
Publicity		—		—		1,602		1,602		599
Doubtful accounts		—		—		9,829		9,829		571
Bank expenses and commissions		—		192		5,579		5,771		3,643
Others expenses		1,220		130		155		1,505		1,786

Total as of September 30, 2014		894,085		92,800		117,962		1,104,847

Total as of September 30, 2013		413,905		60,716		72,799				547,420

24The expenses included in the above table are net of the Company’s own expenses capitalized in properties, plant and equipment for Ps. 10,737 thousand at September 30, 2014 and for Ps. 9,584 thousand at September 30, 2013.

METROGAS S.A.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE ~~SIX~~NINE MONTHS PERIOD ENDED AS OF ~~JUNE~~SEPTEMBER 30, 2014 AND COMPARATIVE INFORMATION

(amounts in thousands of pesos, except where expressly stated otherwise)

25.

OTHER INCOME AND EXPENSES

	For the six months period ended						For the three months period ended
	For the nine months period ended						For the three months period ended
	06.30.14			06.30.13			06.30.14			06.30.13
	09.30.14			09.30.13			09.30.14			09.30.13
Leases		810			—1,111			~~405~~—			—1,111
Result from sales of Investment Properties		8,067			—			~~8,067~~—			—
Publicity		~~507~~555			~~562~~630			~~207~~48			6268
Other income		45,~~520~~582			12,~~169~~330			21,~~616~~062			~~917~~1,161
Revenues from rendering services to Controlling Company		12,~~330~~095			—559			~~715~~765			—559
Increases in provisions for contingencies		(1529,~~240)~~086	)		(247,~~734)~~210			(413,~~146)~~846	)		(149,~~210)~~944
		(6	)		(1,003	)		7,864			(231	)
Total		(11,977	)		51,840			(11,971	)		52,843

26.

NET FINANCE RESULTS

	For the nine months period ended				For the three months period ended
	09.30.14		09.30.13		09.30.14			09.30.13
Finance income
	For the six months period ended				For the three months period ended
Financial assets at fair value		12,611		12,621		4,935			6,421
	06.30.14		06.30.13		06.30.14			06.30.13
Exchange difference on cash and cash equivalents		1,416		—		178			—
Financial assets at fair value		7,676		6,200		3,566			3,385
		14,027		12,621		5,113			6,421
Other holding results		—		—		(83	)		—
	For the nine months period ended				For the three months period ended
Exchange difference on cash and cash equivalents		1,238		—		109			—
	09.30.14		09.30.13		09.30.14			09.30.13
		8,914		6,200		3,592			3,385
Finance costs
Exchange difference on financial debt		282,885		123,751		45,908			57,264
Exchange difference on cash and cash equivalents		—		1,508		—			(96	)
Accrued interest on notes		141,364		80,302		48,989			30,305
Accrued interest on YPF loan		12,027		—		5,171			—
Others		13,695		11,862		5,561			4,838
		449,971		217,423		105,629			92,311

~~Finance~~29 ~~costs~~

	For the six months period ended				For the three months period ended
	06.30.14		06.30.13		06.30.14		06.30.13
Exchange difference on financial debt		236,977		66,487		20,380		36,333
Exchange difference on cash and cash equivalents		—		1,604		—		(84	)
Accrued interest on notes		92,375		49,997		52,041		27,561
Accrued interest on YPF loan		6,856		—		1,277		—
Others		8,134		7,024		4,092		4,337
		344,342		125,112		77,790		68,147

METROGAS S.A.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE ~~SIX~~NINE MONTHS PERIOD ENDED AS OF ~~JUNE~~SEPTEMBER 30, 2014 AND COMPARATIVE INFORMATION

(amounts in thousands of pesos, except where expressly stated otherwise)

27.

INCOME TAX AND MINIMUM PRESUMED INCOME TAX

The following table shows the changes and breakdown of deferred income tax assets and liabilities:

MetroGAS

Deferred income tax assets

								Total deferred tax
	Trade receivables		Provisions		Others			Total deferred taxassets
	Trade receivables		Provisions		Others			assets
Balances at 12.31.13		81,298		21,235		(59	)		102,474
Movements of the period		910,~~041~~090		510,~~162~~000		97(39	)		1420,~~300~~051
Balances at 06.30.14		90,339		26,397		38			116,774
Balances at 09.30.14		91,388		31,235		(98	)		122,525

Deferred income tax liabilities

	Properties, plantand equipment			Financial debt			Others			Total deferred taxliabilities			Total net deferredtax liabilities
Balances at 12.31.13		(225,430	)		(101,389	)		(394	)		(327,213	)		(224,739	)
Movements of the period		57,~~520~~185			(16,~~354~~062	)		~~362~~418			(108,~~472~~459	)		311,~~828~~592
Balances at 06.30.14		(219,910	)		(117,743	)		(32	)		(337,685	)		(220,911	)
Balances at 09.30.14		(218,245	)		(117,451	)		24			(335,672	)		(213,147	)

MetroENERGÍA

Deferred income tax assets

Deferred tax assets


	Trade receivables		Others			Total
Balances at 12.31.13		1,645		(538	)		1,107
Movements of the period		3,832		(106	)		3,726

Balances at 09.30.14		5,477		(644	)		4,833

	Trade receivables			Others			Total
Balances at 12.31.13		1,645			(538	)		1,107
Movements of the period		(60	)		65			5
Balances at 06.30.14		1,585			(473	)		1,112

METROGAS S.A.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE ~~SIX~~NINE MONTHS PERIOD ENDED AS OF ~~JUNE~~SEPTEMBER 30, 2014 AND COMPARATIVE INFORMATION

(amounts in thousands of pesos, except where expressly stated otherwise)

Below is the reconciliation between the income tax charged to results and the amount resulting from the application of the corresponding tax rate to the accounting result before income tax:

	For the six months period ended						For the three months period ended
	For the nine months period ended						For the three months period ended
	06.30.14			06.30.13			06.30.14			06.30.13
	09.30.14			09.30.13			09.30.14			09.30.13
Income tax expense on pre tax income		~~108~~115,~~906~~228			(~~218~~225,~~663~~428	)		(6,~~593~~322	)		24(6,~~473~~765	)
Tax effect due to:
Non deductible expenses and non taxable income		42,~~127~~536			(1,~~188~~518	)		4(1,~~231~~591	)		(3330	)
Tax loss carry forwards not recognized		(~~131~~134,~~171~~554	)		—			(3,~~731~~383	)		—
Minimum presumed income tax not recognized		(48,~~737~~532	)		(710,~~254~~965	)		(3,~~756~~795	)		(3,~~502~~711	)
Total income tax charged to results		(2225,~~875~~322	)		(~~227~~237,~~105~~911	)		(92,~~849~~447	)		20(10,~~968~~806	)

Below is the reconciliation between the tax charged to results and the income tax determined for fiscal purposes:

	For the six months period ended						For the three months period ended
	For the nine months period ended						For the three months period ended
	06.30.14			06.30.13			06.30.14			06.30.13
	09.30.14			09.30.13			09.30.14			09.30.13
Income tax determined for fiscal purposes MetroGAS		~~131~~134,~~171~~554			(~~129~~102,~~186~~975	)		3,~~731~~383			2826,~~975~~211
Income tax determined for fiscal purposes MetroENERGÍA		(2132,~~971~~108	)		(921,~~787~~509	)		(1310,~~762~~137	)		(511,~~780~~722	)
Temporary differences		315,~~833~~318			(80105,~~878~~526	)		711,~~669~~485			1(24,~~275~~648	)
Minimum presumed income tax not recognized		(4,737	)		(7,254	)		(3,756	)		(3,502	)
2012 Tax loss adjustment		—			3,064			—			3,064
Tax loss carry forwards not recognized		(131,171	)		—			(3,731	)		—
Minimum presumed income tax not recognized		(8,532	)		(10,965	)		(3,795	)		(3,711	)
Total income tax charged to results		(22,875	)		(227,105	)		(9,849	)		20,968
Tax loss carry forwards not recognized		(134,554	)		—			(3,383	)		—
Total income tax charged to results		(25,322	)		(237,911	)		(2,447	)		(10,806	)

The remaining tax losses carry-forward as of ~~June~~September 30, 2014 amounted to Ps. ~~198~~201,~~461~~844 thousand and were not ~~recognized~~ recognized in the financial statements at the end of the period. That tax loss carry-forward could be offset against future results expiring Ps. 67,290 thousand in 2017 and Ps. ~~131~~134,~~171~~554 thousand in 2019.

In addition, the tax credit on minimum presumed income tax not recognized in the financial statements as of ~~June~~September 30, 2014 amounted to Ps. ~~133~~137,~~981~~776 thousand, expiring between the years 2014 and 2024.

2731

METROGAS S.A.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE ~~SIX~~NINE MONTHS PERIOD ENDED AS OF ~~JUNE~~SEPTEMBER 30, 2014 AND COMPARATIVE INFORMATION

(amounts in thousands of pesos, except where expressly stated otherwise)

28.

NET RESULT PER SHARE

The following table shows the net results and the number of shares that have been used to calculate the net basic result per share:

	For the six months period ended
	For the nine months period ended
	06.30.14			06.30.13
	09.30.14			09.30.13
Net and comprehensive result for the period		(333,205	)		397,726
Net and comprehensive result for the period attributable to controlling interest		(354,311	)		405,190
attributable to controlling interest
Average of common shares outstanding		569,171			569,171
Net basic and diluted result per share		(0.5962	)		0.7071
	For the three months period ended
	06.30.14			06.30.13
	09.30.14			09.30.13
Net and comprehensive result for the period		7,578			(48,525	)
Net and comprehensive result for the period attributable to controlling interest		(21,106	)		7,464
attributable to controlling interest
Average of common shares outstanding		569,171			569,171
Net basic and diluted result per share		(0.0104	)		(0.0901	)

29.

BALANCES AND TRANSACTIONS WITH RELATED PARTIES

MetroGAS carries out operations and transactions with related parties according to general market conditions, wich are part of the normal operation of the company, with respect to their purposes and conditions.

In turn, there are agreements for the rendering of Professional Services from MetroGAS to Gas Argentino in relation to administrative, accounting, tax, finance and legal issues as well as any other issue related to the ordinary operation of Gas Argentino, the value of which has been set pursuant to reasonable market standards for services of this nature.

The information related to changes in the Company’s control is detailed in Note 2.1 to the consolidated financial statements as at December 31, 2013.

The information described in the following charts shows the balances with related companies as of ~~June~~September 30, 2014 and December 31, 2013, as well as operations with these companies for the ~~six~~nine and three months periods ended on ~~June~~September 30, 2014 and 2013.

2832

METROGAS S.A.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE ~~SIX~~NINE MONTHS PERIOD ENDED AS OF ~~JUNE~~SEPTEMBER 30, 2014 AND COMPARATIVE INFORMATION

(amounts in thousands of pesos, except where expressly stated otherwise)

The transactions shown below have been made with related parties:

	For the six months period ended
	For the nine months period ended
	06.30.14										06.30.13
	09.30.14										09.30.13
	Gas &transportationsales		Gaspurchases		Financecosts		Other netincome		Salaries and othersemployee benefits		Gas &transportationsales		~~Gaspurchases~~Other netincome		~~Fees forprofessionalservices~~Gaspurchases		~~Salaries~~Fees ~~and othersemployee benefits~~forprofessionalservices		Salaries and othersemployee benefits
Controlling company
Gas Argentino		—		—		—		12,~~330~~095		—		—		—559		—		—		—
Related parties:
Apache Energía Argentina S.R.L.		—		430,~~199~~700		—		—		—		—		—		—		—		—
Central Dock Sud S.A.		813,~~240~~440		—		—		—		—		45,~~354~~774		—		—		—		—
YPF S.A.		811		~~128~~268,~~039~~373		612,~~856~~027		—		—		1134		~~57,583~~—		~~663~~94,754		—677		—
Operadora de Estaciones de Servicios S.A.		~~425~~3,743		—		—		—		—		~~645~~869		—		—		—		—
Astra Evangelista S.A.		24790		—		—		—		—		1737		—		—		—		—
ENARSA		—		2345,~~172~~897		—		—		—		—		—		—24,565		—		—
Profertil S.A.		4156,~~648~~886		—		—		—		—		—		—		—		—		—
Key directors and management:		—		—		—		—		1016,~~162~~990		—		—		—		~~11,156~~—		13,441
		50,345		155,410		6,856		1,330		10,162		5,027		57,583		663		11,156
		74,870		344,970		12,027		2,095		16,990		6,714		559		119,319		677		13,441

2933

METROGAS S.A.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE ~~SIX~~NINE MONTHS PERIOD ENDED AS OF ~~JUNE~~SEPTEMBER 30, 2014 AND COMPARATIVE INFORMATION

(amounts in thousands of pesos, except where expressly stated otherwise)

	For the three months period ended
	06.30.14										06.30.13
	09.30.14										09.30.13
	Gas &transportationsales		Gaspurchases		Financecosts		Other netincome		Salaries and othersemployee benefits		Gas &transportationsales		~~Gaspurchases~~Other netincome		~~Fees forprofessionalservices~~Gaspurchases		~~Salaries~~Fees ~~and othersemployee benefits~~forprofessionalservices		Salaries and othersemployee benefits
Controlling company
Gas Argentino		—		—		—		~~715~~765		—		—		—559		—		—		—
Related parties:
Apache Energía Argentina S.R.L.		—		326,~~737~~501		—		—		—		—		—		—		—		—
Central Dock Sud S.A.		5,~~188~~200		—		—		—		—		1,~~440~~420		—		—		—		—
YPF S.A.		43		95140,~~171~~334		15,~~277~~171		—		—		723		~~46,199~~—		~~352~~37,171		—14		—
Operadora de Estaciones de Servicios S.A.		~~161~~3,318		—		—		—		—		~~345~~224		—		—		—		—
Astra Evangelista S.A.		13766		—		—		—		—		1120		—		—		—		—
ENARSA		—		22,~~404~~725		—		—		—		—		—		—24,565		—		—
Profertil S.A.		2715,~~912~~238		—		—		—		—		35		—		—		—		—
Key directors and management:		—		—		—		—		56,~~614~~828		—		—		—		~~6,376~~—		2,285
		33,278		121,312		1,277		715		5,614		1,803		46,199		352		6,376
		24,525		189,560		5,171		765		6,828		1,722		559		61,736		14		2,285

3034

METROGAS S.A.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE ~~SIX~~NINE MONTHS PERIOD ENDED AS OF ~~JUNE~~SEPTEMBER 30, 2014 AND COMPARATIVE INFORMATION

(amounts in thousands of pesos, except where expressly stated otherwise)

The balances shown below are outstanding with related parties:

	06.30.14
	09.30.14
	Tradereceivables			Other receivables				Trade payable		Financial debt				Salaries andsocial security
	Current			Current		Non current		Current		Corrientes		Non current		Current
Controlling company
Gas Argentino		—			~~672~~468		45,~~943~~373		—		—		—		—
Related parties:
Apache Energía Argentina S.R.L.		—			—		—		64,~~551~~679		—		—		—
Central Dock Sud S.A.		6,~~387~~607			—		—		—		—		—		—
Operadora de Estaciones de Servicios S.A.		38240			—		—		—		—		—		—
YPF S.A.		(410	)		—		—		~~201~~154,~~937~~487		96102,~~856~~027		2729,~~911~~213		—
Astra Evangelista S.A.		—167			—		—		~~36,781~~—		—		—		—
ENARSA		—			—		—		—60,773		—		—		—
Profertil S.A.		164,~~764~~997			—		—		—		—		—		—
Key directors and management:		—			—		—		—		—		—		36,~~965~~846
		23,185			672		4,943		245,269		96,856		27,911		3,965
		12,001			468		5,373		219,939		102,027		29,213		6,846

	12.31.13
	Tradereceivables			Other receivables				Trade payable		Financial debt		Salaries andsocial security
	Current			Current		Non current		Current		Non current		Current
Controlling company
Gas Argentino		—			615		3,631		—		—		—
Related parties:
Apache Energía Argentina S.R.L.		—			—		—		—		—		—
Central Dock Sud S.A.		1,090			—		—		—		—		—
Operadora de Estaciones de Servicios S.A.		263			—		—		—		—		—
YPF S.A.		(2	)		—		—		104,864		21,375		—
Astra Evangelista S.A.		15			—		—		—		—		—
ENARSA		—			—		—		15,238		—		—
Key directors and management:		—			—		—		—		—		5,249
		1,366			615		3,631		120,102		21,375		5,249

Outstanding amounts have not been guaranteed and will be paid in cash. No guarantees have been given or received. No expenses have been recognized in the current or former periods with respect to uncollectible or doubtful accounts in relation to amounts owed by related parties.

Additionally, in the ordinary course of business, and considering that the Licensee operates the gas distribution service within the south and east area of the Great Buenos Aires, including the City of Buenos Aires, the Company’s customer/supplier portfolio includes entities of the private as well as of the national, provincial and municipal sectors.

Also, as mentioned in Note 2.5.1 to the consolidated financial statements as of December 31, 2013 and pursuant to Resolution I-2621/2013 of ENARGAS, MetroGAS currently bills on behalf and for the account of ENARSA the injected volumes in relation to CNG as from June 2013. The net balance of this operation as of ~~June~~September 30, 2014 is shown in Note 20.

3135

METROGAS S.A.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE ~~SIX~~NINE MONTHS PERIOD ENDED AS OF ~~JUNE~~SEPTEMBER 30, 2014 AND COMPARATIVE INFORMATION

(amounts in thousands of pesos, except where expressly stated otherwise)

Furthermore, as explained in Note 2.6 to the consolidated financial statements as of December 31, 2013, MetroGAS must invoice, collect and settle three specific charges, with different appropriations, which is done for the order and account of Nación Fideicomisos S.A. Balances of this operation are stated in Note 20.

Finally, as described in Note 2.4.2 to the consolidated financial statements as of December 31, 2013, MetroGAS signed with ENARGAS on November 21, 2012 Minutes of Agreement that establish a fixed amount per bill, separated by customer category, which has to be considered as advanced payment for future tariff adjustments provided for in the Temporary Agreement approved by Decree No. 234/09. ENARGAS executed the agreement through Resolution No. 2,407/12 published on November 29, 2012. The Minutes state that amounts thus collected shall be deposited in a specifically dedicated trust fund used for the execution of infrastructure, connections, re-boosting, extensions and/or technological adjustment of gas distribution systems. Therefore, on December 12, 2012 a trust agreement was signed by MetroGAS and Nación Fideicomisos S.A. Balances for these operations are shown in Notes 13 and 20.

David Tezanos Gonzalez

Chairperson

3236

METROGAS S.A.

INFORMATIVE SUMMARY OF ACTIVITY

RESOLUTION No. 368/01 OF THE ARGENTINE SECURITIES COMMISSION

Argentine Economic Context and its impact on the Company

Note 2 to the consolidated financial statements as of December 31, 2013, include a detailed description of the economic and regulatory context and of the impact of Emergency Law and regulations thereunder on the Company.

These circumstances have been taken into account by the Management of the Company when making any significant accounting estimates included in these consolidated financial statements, which include estimates for the recoverable value of non-current assets. For this purpose, the Company prepares from time to time an economic and financial forecast on the basis of alternative scenarios based on macroeconomic, financial, market and regulatory assumptions. See Note 5.

General

Company’s sales have been highly influenced by weather conditions prevailing in Argentina. Natural gas demand, and consequently sales, are considerably higher during winter months (from May to September) due to the gas volumes sold and the rates mix affecting sales revenues and gross margin.

On account of regulatory changes (see Note 2.4.3 to the consolidated financial statements as of December 31, 2013), on April 20, 2005 the Board of Directors of MetroGAS resolved to create MetroENERGÍA, a corporation whose equity is owned 95% by MetroGAS and whose corporate purpose is to engage, on its own account and on behalf of or in association with third parties, in the sale and purchase and/or transportation of natural gas.

On March 26, 2014, within the process of renegotiation of utilities contracts pursuant to Law No. ~~25561~~25,561 and supplementary rules, the Company signed a Provisional Agreement with the Unit for the Renegotiation and Analysis of Utility Contracts (“UNIREN”) whereby a provisional tariff regime was agreed in order to obtain additional funds to those resulting from the enforcement of ENARGAS Resolution No. I/2407 dated December 27, 2012, that established the collection of a fixed amount per invoice depending on the customers’ category, which should be transferred to a trust fund especially created for the execution of works. The amounts the Company collects pursuant to the mentioned Resolution have been considered payments on account in relation with the adjustments as set forth by Temporary Agreement approved by Decree No. 234 dated March 26, 2009.

Analysis of transactions for the ~~six~~nine months period ended ~~June~~September 30, 2014 and 2013

The sales of the Company for the ~~six~~nine months period ended ~~June~~September 30, 2014 increased by 6177.43%, and operating costs rose by 6384.83% as compared with the ~~same~~ same period in previous fiscal year, as a result of which gross profit increased by Ps. ~~111~~230,~~134~~430 thousand, to Ps. ~~317~~622,~~651~~837 thousand during the nine months period ended on ~~June~~September 30, 2014, as compared with Ps. ~~206~~392,~~517~~407 thousand shown for the same period in the preceding fiscal year.

Administrative expenses increased by 5051.2%, from Ps. 98159,~~821~~537 thousand during the ~~six~~nine months period ended on ~~June~~ September 30, 2013, as compared with Ps. ~~148~~241,~~456~~256 thousand shown for the current period, and selling expenses increased by 2036.30%, from Ps. ~~120~~193,~~499~~298 thousand, during for the ~~six~~nine months period ended ~~June~~September 30, 2013, to Ps. ~~144~~ 262,~~920~~882 thousand shown for the same period of the present fiscal year.

3337

METROGAS S.A.

INFORMATIVE SUMMARY OF ACTIVITY

RESOLUTION No. 368/01 OF THE ARGENTINE SECURITIES COMMISSION

Consequently, during the ~~six~~nine months period ended ~~June~~September 30, 2014 an operating income of Ps. 24106,~~269~~722 thousand was recorded, as compared to an operating ~~loss~~income of Ps. 1391,~~806~~412 thousand for the same period in previous fiscal year.

During ~~the~~ ~~six~~the nine months period ended ~~June~~September 30, 2014 net financial results was a loss of Ps. ~~335~~435,~~428~~944 thousand, as compared with a loss of Ps. ~~118~~204,~~912~~802 thousand sustained in the same period in previous fiscal year.

Also, during the ~~six~~nine months period ended on ~~June~~September 30, 2013 the Company registered a gain from reorganization debt amounting to Ps. 757,470 thousand (see Note 17 to the consolidated financial statements as at December 31, 2013).

Consequently, the Company’s net loss for the ~~six~~nine months period ended ~~June~~September 30, 2014 amounted to Ps. ~~334~~354,~~034~~544 thousand, as compared to a net gain of Ps. ~~397~~406,~~647~~169 thousand for the same period in previous fiscal year.

Results of Operations and Financial Condition

Sales

Total consolidated sales increased by 6177.43% during the ~~six~~nine months period ended ~~June~~September 30, 2014, and amounted to Ps. 12,~~371~~570,~~166~~437 thousand, as compared with Ps. ~~849~~1,~~575~~449,370 thousand shown for the same period in previous fiscal year.

The increase in sales for the ~~six~~nine months period ended on ~~June~~September 30, 2014, was mainly due to increase in MetroGAS sales to residential customers and increased in MetroENERGÍA sales, partially offset by lower processing natural gas sales.

MetroGAS gas sales to residential customers increased by 77106.3%, from Ps. ~~339~~615,~~845~~096 thousand to Ps. ~~602~~1,~~607~~268,667 thousand for the ~~six~~nine months period ended on ~~June~~September 30, 2013 and 2014, respectively, mainly due to an increase in tariffs for the ~~six~~nine months period ended ~~June~~September 30, 2014, as compared to the same period in the previous fiscal year, according to The Provisional Agreement described in ~~Note~~Notes 2.1 and 2.2 of these condensed consolidated interim financial statements., ~~The~~partially ~~volumes~~offset ~~delivered~~by todecrease ~~this~~of ~~customer category in~~ the ~~six~~volumes ~~months~~delivered ~~period ended on~~to ~~June 30,~~this ~~2014~~customer ~~continue~~category ~~with~~by ~~the same level as compared with the same period in previous fiscal year~~12.1%.

MetroGAS gas sales to industrial and commercial customers and governmental entities increased by 1627.34%, to Ps. 56 108,~~922~~380 thousand during the ~~six~~nine months period ended on ~~June~~September 30, 2014 from Ps. 4885,~~935~~074 thousand during the same period in previous fiscal year, mainly on account of the tariff increases previously mentioned and at a lesser extent of an increase by ~~1,4~~2.2% in volumes delivered.

Sales of transportation and distribution services to power stations increased by 197.65%, from Ps. 40 56,~~175~~156 thousand during the ~~six~~nine months period ended on ~~June~~September 30, 2013, to Ps. 4860,~~032~~343 thousand for the same period of the present fiscal year, mainly on account of an increase in average prices of sale, and ~~partially offset by~~ a decrease of athe volumes ~~17.9%~~delivered into ~~volumes~~this ~~delivered~~customer category by 10.4%.

On the other hand, sales of transportation and distribution services to industrial and commercial customers and governmental entities decreased by 1215.5%, from Ps. 3059,~~252~~108 thousand during the ~~six~~nine months period ended on ~~June~~September 30, 2013 to Ps. 2649,~~471~~968 thousand for the same period in the present fiscal year, mainly ~~due~~on toaccount ~~the~~of ~~penalties~~an decrease ~~included~~ in ~~the~~average ~~six~~prices ~~months period ended on June 30, 2013~~ of ~~Ps.~~sale ~~4,594 and,~~ to a lesser extent on account of the 14.15%~~decrease~~ increase in delivered volumes.

3438

METROGAS S.A.

INFORMATIVE SUMMARY OF ACTIVITY

RESOLUTION No. 368/01 OF THE ARGENTINE SECURITIES COMMISSION

AsSales ~~from~~of ~~July~~transportation ~~2013,~~and ~~MetroGAS~~distribution ~~discontinued~~services ~~the processing of natural gas~~ to ~~obtain~~Compressed ~~hydrocarbons~~Natural atGas ~~the~~(“CNG”) ~~General~~stations ~~Cerri~~decreased ~~plant.~~by ~~Subsequently~~32.7%, ~~for~~from ~~the period August-December 2013~~Ps. 39,187 thousand anduring ~~agreement~~the ~~was~~nine ~~reached~~months ~~with~~period ~~Transportadora~~ended ~~Gas~~on ~~del~~September 30, ~~Sur~~2013, ~~(“TGS”)~~ to ~~assign~~Ps. ~~those~~26,404 thousand ~~hydrocarbons~~for at the ~~head~~same period of the ~~TGS~~present ~~gas~~fiscal ~~pipeline~~year, inmainly ~~Exchange~~on account of aan ~~monthly~~decrease ~~rate~~in average prices of sale.

~~MetroENERGÍA~~As ~~gas~~from ~~sales~~July ~~during~~2013, MetroGAS discontinued the ~~six~~processing ~~months~~of ~~period~~natural ~~ended~~gas onto ~~June 30,~~obtain ~~2014~~hydrocarbons ~~amounted~~at tothe PsGeneral Cerri plant. ~~612~~Subsequently,~~605 thousand~~ ~~increasing~~for bythe period ~~108.1%~~August-December as2013, ~~compared of~~an ~~the~~agreement ~~same~~was ~~period~~reached inwith ~~previous~~Transportadora ~~fiscal~~Gas ~~year~~del ~~amounted~~Sur (“TGS”) to ~~Ps.~~assign ~~294,423~~those ~~thousand.~~hydrocarbons ~~This~~at ~~increase~~the ~~was~~head ~~mainly~~of ~~due~~the toTGS angas ~~increase~~pipeline in ~~average~~Exchange ~~prices~~of a monthly rate. This agreement has been renewed for the period July-December 2014.

~~The~~MetroENERGÍA ~~table below~~gas ~~shows~~sales during the ~~consolidated~~nine ~~sales~~months ofperiod ~~the~~ended ~~Company~~on bySeptember 30, ~~type~~2014 ofamounted ~~service~~to ~~and~~Ps. ~~customer~~1,029,315 thousand increasing ~~categories~~by ~~for~~107.5% as compared of the ~~six~~same ~~months~~period ~~periods~~in ~~ended~~previous onfiscal ~~June 30,~~year ~~2014~~amounted ~~and~~to ~~2013~~Ps. 496,019 thousand. This increase was mainly due to an increase in ~~thousands~~average prices and to a lesser extent on account of ~~pesos:~~the 8.9% increase in delivered volumes.

	For the sixmonths periodendedJune 30, 2014		% ofSales		For the sixmonths periodendedJune 30, 2013		% ofSales
MetroGAS
Gas sales:
Residential		602,607		44.0		339,845		40.0
Industrial, Commercial and Governmental		56,922		4.2		48,935		5.8
Subtotal		659,529		48.2		388,780		45.8
Transportation and Distribution Services
Power Plants		48,032		3.5		40,175		4.7
Industrial, Commercial and Governmental		26,471		1.9		30,252		3.5
Compressed Natural Gas		17,105		1.2		17,481		2.0
Subtotal		91,608		6.6		87,908		10.2
Processed Natural Gas		—		—		67,682		8.0
Other Gas Sales and Transportation and Distribution Services		7,424		0.5		10,782		1.3
MetroENERGÍA
Gas and transportation sales		600,486		43.8		287,775		33.9
Other income		12,119		0.9		6,648		0.8
Total of Sales		1,371,166		100.0		849,575		100.0

The table below shows the consolidated sales of the Company by type of service and customer categories for the nine months periods ended on September 30, 2014 and 2013, in thousands of pesos:


	For the nine months period ended September 30, 2014		% of Sales		For the nine months period ended September 30, 2013		% of Sales
MetroGAS
Gas sales:
Residential		1,268,667		49.4		615,096		42.4
Industrial, Commercial and Governmental		108,380		4.2		85,074		5.9

Subtotal		1,377,047		53.6		700,170		48.3

Transportation and Distribution Services
Power Plants		60,343		2.3		56,156		3.9
Industrial, Commercial and Governmental		49,968		1.9		59,108		4.0
Compressed Natural Gas		26,404		1.1		39,187		2.7

Subtotal		136,715		5.3		154,451		10.6

Processed Natural Gas		1,807		0.1		69,102		4.8
Other Gas Sales and Transportation and Distribution Services		25,553		1.0		29,628		2.0

MetroENERGÍA

Gas and transportation sales		1,012,302		39.4		484,973		33.5
Other income		17,013		0.6		11,046		0.8

Total of Sales		2,570,437		100.0		1,449,370		100.0

METROGAS S.A.

INFORMATIVE SUMMARY OF ACTIVITY

RESOLUTION No. 368/01 OF THE ARGENTINE SECURITIES COMMISSION

The table below presents the volumes of sales of natural gas and transportation and distribution services by MetroGAS by customer category for the ~~six~~nine months periods ended on ~~June~~September 30, 2014 and 2013, in millions of cubic meters:

For the sixmonths periodendedJune 30, 2014

% ofVolumesof gasdelivered

For the sixmonths periodendedJune 30, 2013

% ofVolumesof gasdelivered

For the ninemonths periodendedSeptember 30,2014

% ofVolumesof gasdelivered

For the ninemonths periodendedSeptember 30,2013

% ofVolumesof gasdelivered

Gas sales:

Residential

~~880~~1,607.6

2530.74

~~880~~1,829.90

2331.49

Industrial, Commercial and Governmental

~~202~~373.60

57.91

~~199~~364.9

56.3

Subtotal

1,~~083~~980.26

3137.65

12,~~080~~193.89

2838.72

Transportation and Distribution Services

Power Plants

1,~~477~~937.3

4336.27

12,~~800~~162.02

4737.7

Industrial, Commercial and Governmental

~~387~~594.49

11.3

~~391~~569.84

109.49

Compressed Natural Gas

~~254~~395.8

7.45

~~253~~392.73

6.78

Subtotal

2,~~119~~928.50

6155.95

23,~~445~~123.59

6454.84

Processed Natural Gas

—

70.1

1.92

Other Gas Sales and Transportation and Distribution Services

~~223~~371.79

67.50

~~174~~354.30

4.6.2

Total delivered volume by MetroGAS

35,~~426~~280.45

100.0

35,~~770~~741.79

100.0

Total gas and transportation delivered volume by MetroENERGÍA

~~467~~706.02

100.0

~~500~~648.05

100.0

Operating Costs

Operating costs increased by 6384.83% amounting to Ps. 1,~~053~~947,~~515~~600 thousand during the ~~six~~nine months period ended on ~~June~~September 30, 2014, respect to Ps. ~~643~~1,~~058~~056,963 thousand registered during the same period in previous fiscal year. This variation was mainly due to increase in gas purchase costs and in payroll and social contributions, ~~sundry~~in ~~materials and~~ fixed assets maintenance and repair, ~~and~~in transportation of natural gas cost, in properties, plant and equipment depreciation and in sundry materials.

The costs of natural gas purchases increased by ~~113~~132.03%, from Ps. ~~359~~645,~~179~~112 thousand for the ~~six~~nine months period ended on ~~June~~September 30, 2013 to Ps. ~~765~~1,~~098~~498,764 thousand during the same period in present fiscal year, mainly as a result of increased in average price gas purchased by MetroGAS and MetroENERGÍA. During the ~~six~~nine months period ended on ~~June~~ September 30, 2014 12,~~237~~579.3 million cubic meters were purchased by MetroGAS, and ~~467~~706.2 million cubic meters by MetroENERGÍA, which as a whole represent a 01.450% decrease with respect to gas volumes purchased in the same period in previous fiscal year.

Gas transportation costs increased by 89.02% during the ~~six~~nine months period ended on ~~June~~September 30, 2014 as compared with the same period in previous fiscal year as a consequence of the tariff increases for gas transportation established by the ES Resolution No. 226/14.

3640

METROGAS S.A.

INFORMATIVE SUMMARY OF ACTIVITY

RESOLUTION No. 368/01 OF THE ARGENTINE SECURITIES COMMISSION

The table below shows the operating costs and expenses of the Company by type of expenses for the periods ended on ~~June~~September 30, 2014 and 2013, in thousands of pesos.

For the sixmonths periodendedJune 30, 2014

% of TotalOperatingCosts

For the sixmonths periodendedJune 30, 2013

% of TotalOperatingCosts

For the ninemonths periodendedSeptember 30,2014

% of TotalOperatingCosts

For the ninemonths periodendedSeptember 30,2013

% of TotalOperatingCosts

Cost of natural gas

~~765~~1,~~098~~498,764

7277.60

~~359~~645,~~179~~112

5561.90

Transportation of natural gas

~~112~~169,~~437~~823

108.7

~~104~~155,~~071~~527

1614.27

Depreciation of PP&E

3452,~~533~~018

32.37

3350,~~118~~023

54.27

Payroll and social contributions

80126,~~920~~287

76.75

5589,~~390~~552

8.65

Fixed assets maintenance

2544,~~700~~097

2.43

2340,~~956~~142

3.78

Fees for sundry services

1118,~~899~~269

10.19

1517,~~020~~651

21.37

Taxes, rates and contributions

1727,~~266~~300

1.64

4243,~~137~~212

64.61

Sundry materials

26,~~824~~451

0.3

47,~~350~~213

0.7

Other operating expenses

24,~~838~~591

0.32

58,~~837~~531

0.8

Total

1,~~053~~947,~~515~~600

100.0

~~643~~1,~~058~~056,963

100.0

Administrative Expenses

Administrative expenses increased by 5051.2%, from Ps. 98159,~~821~~537 thousand for the ~~six~~nine months period ended on ~~June~~September 30, 2013 to Ps. ~~148~~ 241,~~456~~256 thousand for the current period. This increase was mainly due to the increase in payroll and social contributions, in fixed assets maintenance, in taxes, rates and contributions and commissions, in fees for sundry services, ~~and~~ in depreciation of PP&E , in fees for professional services, in transportation and ~~investment~~freight ~~properties~~charges and in post and telecommunication expenses.

Selling Expenses

Selling expenses increased by 2036.30%, from Ps. ~~120~~193,~~499~~298 thousand for the ~~six~~nine months period ended on ~~June~~September 30, 2013 to Ps. ~~144~~ 262,~~920~~882 thousand for the same period in present fiscal year. This increase was mainly due to the increase in taxes, rates and contributions, in ~~fees~~payroll ~~for~~and ~~sundry~~social ~~services~~contributions, in ~~payroll~~fees ~~and~~for ~~social~~sundry ~~contributions~~services, ~~and~~ in post and telecommunication expenses, ~~partially~~in ~~offset~~doubtful byaccount ~~the~~charge, ~~decrease~~ in ~~doubtful~~bank ~~account~~expenses ~~charge~~and commissions, and in publicity expenses.

Other income and expenses

Other income and expenses ~~amounted~~ todecreased from a ~~loss~~gain of Ps. 151,~~003~~840 thousand for the ~~six~~nine months period ended ~~June~~September 30, 2013, ~~and~~to a loss of Ps.6 11,977 thousand in the same period in present fiscal year, mainly due to increase of provisions in the current period, with respect to provisions registered in the same period in previous fiscal year. This variation was partially offset by the result from sales of investment properties.

Net Financial Results

During the ~~six~~nine months period ended on ~~June~~September 30, 2014 net financial results was a loss of Ps. ~~355~~435,~~428~~944 thousand, as compared to a Ps. ~~118~~204,~~912~~802 thousand loss for the same period in previous fiscal year. The variation in financial results was mainly due to the loss of the exchange difference on financial debt ~~due to the increase in the variation of the exchange rate in the present period compared to the same period of the previous fiscal year~~ and ~~at a lesser extent, to~~ an increase in accrued financial interest from the financial debt.

3741

METROGAS S.A.

INFORMATIVE SUMMARY OF ACTIVITY

RESOLUTION No. 368/01 OF THE ARGENTINE SECURITIES COMMISSION

Income Tax

During the ~~six~~nine months period ended on ~~June~~September 30, 2014 the Company accrued loss of Ps. 2225,~~875~~322 thousand, as compared to a loss of Ps. ~~227~~237,~~105~~911 thousand shown for the same period in previous fiscal year. This change is attributable mainly to the tax increase due to the gain from reorganization debt restructuring registered in the previous year.

Net Cash Flows from Operating Activities

Net cash flows from operating activities for the ~~six~~nine months period ended on ~~June~~September 30, 2014 amounted to Ps. 4540,~~430~~811 thousand, as compared with Ps. ~~103~~289,~~290~~073 thousand for the same period in previous fiscal year. This change was mainly due to increase in funds used by working capital during the current period with respect to the same period in previous fiscal year, partially offset by an increase in cash flows from operating results.

Net Cash Flows from Investing Activities

Net cash flows from investment activities for the ~~six~~nine months period ended on ~~June~~September 30, 2014 amounted to Ps. 66 117,~~824~~122 thousand, as compared with Ps. 70118,~~579~~609 thousand for the same period in previous fiscal year. This variation was mainly due to an increase in PP&E during the present period compared to the same period of the previous fiscal year, partially offset by the proceeds from sales of investment properties.

Net Cash Flows from Financing Activities

Net cash flows generated from financing activities amounted to Ps. 5251,~~113~~877 thousand for the ~~six~~nine months period ended on ~~June~~September 30, 2014 mainly due to the credit facility agreement with YPF amounted to Ps. 90,000 thousand entered in the present period, partially offset by the interest payments on financial debt amounted Ps. 38,123 thousand compared to Ps. 3,109 thousand used in the same period of the previous fiscal year corresponding to the partial payment of interests from the restructuring of debt under the reorganization proceeding.

3842

METROGAS S.A.

INFORMATIVE SUMMARY OF ACTIVITY

RESOLUTION No. 368/01 OF THE ARGENTINE SECURITIES COMMISSION

Liquidity and Capital Resources

Financing

As of ~~June~~September 30, 2014, the financial ~~debt~~ debt accounted for by Company amounted to Ps. 1,~~341~~441,~~470~~302 thousand. Also, nominal debt amounted to U$S 194,329 thousand and Ps. 96102,~~856~~027 thousand.

In compliance with the arrangement made with creditors under the reorganization proceedings, on January 11, 2013 MetroGAS proceeded to exchange the existing Notes held by financial creditors and any allowed or provisionally admitted claims held by non-financial creditors, for the New Notes (see Note 17 to the consolidated financial statements).

Comparative Structure of Condensed Interim Consolidated Statement of financial position⁽¹⁾

Condensed Interim Consolidated Statement of financial positions as of ~~June~~ September 30, 2014 and 2013.

	06.30.14		06.30.13
	09.30.14		09.30.13
	Thousands of Ps.
Non current Assets		1,~~891~~924,~~847~~301		1,~~810~~833,~~120~~577
Current assets		~~937~~1,~~692~~093,474		~~637~~766,~~720~~085
Total assets		23,~~829~~017,~~539~~775		2,~~447~~599,~~840~~662
Non current Liabilities		1,~~562~~626,~~563~~196		1,~~144~~165,~~746~~697
Current Liabilities		1,~~176~~322,~~893~~006		~~738~~860,~~160~~509
Total Liabilities		2,~~739~~948,~~456~~202		12,~~882~~026,~~906~~206
Non-controlling interest		2,~~054~~650		~~910~~1,968
Equity attributable to the owners		8866,~~029~~923		~~564~~571,~~024~~488
Total Liabilities and Shareholders’ Equity		23,~~829~~017,~~539~~775		2,~~447~~599,~~840~~662

⁽¹⁾	Information covered by the Independent auditors report.

3943

METROGAS S.A.

INFORMATIVE SUMMARY OF ACTIVITY

RESOLUTION No. 368/01 OF THE ARGENTINE SECURITIES COMMISSION

Comparative Condensed Interim Consolidated Structure of Profit and loss and other comprehensive income⁽¹⁾

Condensed Interim Consolidated Statements of Profit and Loss and Other Comprehensive Income for the ~~six~~ nine months periods ended on ~~June~~September 30, 2014 and 2013.

	06.30.14			06.30.13
	09.30.14			09.30.13
	Thousands of Ps.
Revenues		12,~~371~~570,~~166~~437			~~849~~1,~~575~~449,370
Operating costs		(1,~~053~~947,~~515~~600	)		(~~643~~1,~~058~~056,963	)
Gross profit		~~317~~622,~~651~~837			~~206~~392,~~517~~407
Administration expenses		(~~148~~241,~~456~~256	)		(98159,~~821~~537	)
Selling expenses		(~~144~~262,~~920~~882	)		(~~120~~193,~~499~~298	)
Other income and expenses		(611,977	)		(151,~~003~~840	)
Operating income (loss)		24,269			(13,806	)
Operating income		106,722			91,412
Finance income		814,~~914~~027			612,~~200~~621
Finance cost		(~~344~~449,~~342~~971	)		(~~125~~217,~~112~~423	)
Net financial results		(~~335~~435,~~428~~944	)		(~~118~~204,~~912~~802	)
Debt restructuring result		—			757,470
Result before income tax		(~~311~~329,~~159~~222	)		~~624~~644,~~752~~080
Income tax and MPIT		(2225,~~875~~322	)		(~~227~~237,~~105~~911	)
Net result for the period		(~~334~~354,~~034~~544	)		~~397~~406,~~647~~169
Other comprehensive result		—			—
Net and comprehensive result for the period		(~~334~~354,~~034~~544	)		~~397~~406,~~647~~169

⁽¹⁾	Information covered by the Independent auditors report.

4044

METROGAS S.A.

INFORMATIVE SUMMARY OF ACTIVITY

RESOLUTION No. 368/01 OF THE ARGENTINE SECURITIES COMMISSION

Comparative Statistical Data

The information shown below makes reference to the ~~six~~nine months periods ended on ~~June~~September 30, 2014 and 2013.

	06.30.14			06.30.13
	09.30.14			09.30.13
	Volumes
	In millions of cubic meters
Gas purchased by MetroGAS		12,~~237~~579.03			12,~~326~~669.57
Gas contracted by third parties		23,~~569~~377.78			23,~~858~~823,90
		3,806.7			4,185.4
		5,957.1			6,492.7
Volume of gas withheld:
- Transportation		(~~230~~378.70	)		(~~257~~407.6	)
- Loss in distribution		(~~149~~298.6	)		(~~153~~339.56	)
- Transportation and processing of natural gas		—			(3.6	)
Volume of gas delivered by MetroGAS		35,~~426~~280.45			35,~~770~~741.79
Volume of gas purchased and delivered by MetroENERGÍA		~~467~~706.02			~~385~~584.23

Comparative Indices ⁽¹⁾

The information below makes reference to the periods ended on ~~June~~September 30, 2014 and 2013.

	06.30.14		06.30.13
	09.30.14		09.30.13
Liquidity	~~0.80~~	0.83	~~0.86~~	0.89
Solvency	~~0.03~~	0.02	~~0.30~~	0.28
Inmobilization	~~0.67~~	0.64	~~0.74~~	0.71

⁽¹⁾	Information covered by the Independent auditors report.

4145

METROGAS S.A.

INFORMATIVE SUMMARY OF ACTIVITY

RESOLUTION No. 368/01 OF THE ARGENTINE SECURITIES COMMISSION

Additional Information

Changes in MetroGAS Shares and ADS Prices:

		Share Price on the Buenos AiresStock Exchange (1)		ADSs Price on the New York StockExchange (1) and (2)
		$		U$S
March	2010		0.75		2.17
September	2010		0.69		—	(2)
March	2011		1.04		—	(2)
September	2011		0.96		—
March	2012		0.70		—
September	2012		0.48		—
January	2013		0.87		—
February	2013		0.67		—
March	2013		0.70		—
April	2013		0.76		—
May	2013		0.88		—
June	2013		0.71		—
July	2013		0.77		—
August	2013		0.84		—
September	2013		1.10		—
January	2014		1.26		—
February	2014		1.33		—
March	2014		1.74		—
April	2014		2.05		—
May	2014		3.50		—
June	2014		3.74		—
July	2014		3.40		—
August	2014		3.66		—
September	2014		4.85		—

(1)	Prices on the last business day of each month (except for (2)).

(2)	On June 17, 2010, the NYSE announced the immediate suspension of MetroGAS ADSs from listing on such exchange due the Company’s announcement of its voluntary petition for reorganization proceedings on such date.

Perspectives

MetroGAS intends to focus its efforts on ensuring the continuity of its business, maintaining gas supply quality and reliability, complying with basic License rules and finally, on the basis of the outcome of the License agreement renegotiation, MetroGAS will define its new strategy towards the future and in relation to matters such as business planning, business policy and an the development of an investment plan.

Autonomous City of Buenos Aires, ~~August~~November 63, 2014

David Tezanos Gonzalez

Chairperson

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LOGO

English translation of the report originally issued in Spanish, except for the omission of certain disclosures related to formal legal requirements for reporting in Argentina and the addition of the last paragraph.

Deloitte & Co. S.A.

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www.deloitte.com/ar

Independent Auditors’ Report

(Review of condensed interim consolidated financial statements)

To the President and Directors of

METROGAS SOCIEDAD ANÓNIMA

Gregorio Aráoz de Lamadrid 1360

Buenos Aires, Argentina

1.	Identification of the condensed interim consolidated financial statements subject to review

We have reviewed the accompanying condensed interim consolidated financial statements of METROGAS SOCIEDAD ANÓNIMA (an Argentine corporation, hereinafter mentioned as “METROGAS S.A.” or the “Company”) which comprise the consolidated statement of financial position as of ~~June~~September 30, 2014, and the related consolidated statements of profit and loss and other comprehensive income, changes in shareholders’ equity and cash flows for the ~~six~~nine-month period then ended and the supplemental information included in their Notes 1 to 29.

The figures and other information corresponding to the fiscal year finished on December 31, 2013 and for the ~~six~~nine-month period ended ~~June~~September 30, 2013, after giving consideration of what is mentioned in Note 3 to the accompanying condensed interim consolidated financial statements, are an integral part of the condensed interim consolidated financial statements mentioned ~~above~~ above and are intended to be read only in relation to the figures and other information of the current interim period.

2.	Company’s Board of Directors responsibility for the condensed interim consolidated financial statements

The Company’s Board of Directors is responsible for the preparation and fair presentation of the accompanying condensed interim consolidated financial statements of the Company in accordance with International Financial Reporting Standards (“IFRS”) adopted by the Argentine Federation of Professional Councils in Economic Sciences (“FACPCE”) as accounting standards, as they were approved by the International Accounting Standards Board (“IASB”), and incorporated by the Argentine Securities Commission (“CNV”) to its regulation, and, therefore, is responsible for the preparation and presentation of the accompanying condensed interim consolidated financial statements, in accordance with the International Accounting Standard N° 34 “Interim Financial Reporting”. Moreover, the Company’s Board of Directors is ~~responsible~~ responsible of an internal control system as it determines necessary to enable the preparation of financial statements that are free from material misstatements.

Deloitte & Co. S.A. Registro de Soc. Com. CPCECABA - T°₁ Folio ₃

3.	Auditor’s responsibility

Our responsibility is to report on these accompanying condensed interim consolidated financial statements based on our review. We have conducted our review in accordance with the International Standard on Review Engagements (“ISRE”) adopted by the FACPCE through the Technical Resolution N° 33, as they were issued by the International Auditing and Assurance Standards Board (“IAASB”) of the International Federation of Accountants (“IFAC”). These standards require that we comply with ethical requirements.

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 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.

4.	Conclusion

Based on our review, we are in a position to report that nothing has come to our attention that causes us to believe that the accompanying condensed interim consolidated financial statements of METROGAS S.A. corresponding to the ~~six~~nine-month period ended ~~June~~September 30, 2014 are not presented, in all of its ~~significant~~ significant matters, in accordance with International Accounting Standard N° 34.

5.	Additional explanatory paragraphs

Without modifying our previous conclusion, we emphasize that as mentioned in more detail in Note 5.1 to the consolidated financial statements of METROGAS S.A. as of December 31, 2013, the Company has prepared its projections with the aim of determining the recoverable value of properties, plant and equipment, based on assumptions made related to the expected final outcome of the tariff renegotiation process. The cash flows and actual future results may differ from the estimates and assessments made by the Management as of the date of preparation of those financial statements. In this regard, we are not in a position to estimate whether the assumptions used by the Management to prepare its projections will materialize in the future and, therefore, if the recoverable values of properties, plant and equipment will exceed the respective net book values.

6.	English translation of statutory condensed interim consolidated financial statements

This report and the condensed interim consolidated financial statements referred to in section 1 have been translated into English for the convenience of English-speaking readers. The accompanying condensed interim consolidated financial statements are the English translation of those originally issued by METROGAS SOCIEDAD ANÓNIMA in Spanish and presented in accordance with International Accounting Standard N° 34.

Buenos Aires, Argentina

~~August~~November 63, 2014

Deloitte & Co. S.A.

Fernando G. del Pozo

Partner

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally consolidated and independent entity. Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms.

442

METROGAS S.A.

Dated: August 14, 2014

/s/ Marcelo Adrián Nuñez

Marcelo Adrián Nuñez

Title: CEO

Filing Compare · METROGAS INC