Form 6-K
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 the Securities Exchange Act of 1934

For the month of August, 2017

Commission File Number: 001-12102

 

 

YPF Sociedad Anónima

(Exact name of registrant as specified in its charter)

 

 

Macacha Güemes 515

C1106BKK Buenos Aires, Argentina

(Address of principal executive office)

 

 

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  ☒            Form 40-F  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):

Yes  ☐            No  ☒

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):

Yes  ☐            No  ☒

 

 

 


Table of Contents

YPF Sociedád Anonima

TABLE OF CONTENTS

 

ITEM

 

1 Translation of Consolidated Results Q2 2017.


Table of Contents

LOGO

 

 

 

 

YPF S.A.

Consolidated Results

Q2 2017


Table of Contents
LOGO    Consolidated Results Q2 2017

 

 

 

 

CONTENT

 

1.

   MAIN MILESTONES AND ECONOMIC MAGNITUDES FOR Q2 2017      3  

2.

   ANALYSIS OF RESULTS FOR Q2 2017      4  

3.

   ANALYSIS OF OPERATING RESULTS BY BUSINESS SEGMENT FOR Q2 2017      7  
   3.1 UPSTREAM      7  
   3.2 DOWNSTREAM      10  
   3.3 GAS AND ENERGY      13  
   3.4 CENTRAL ADMINISTRATION AND OTHER      14  
   3.5 RELATED COMPANIES      14  

4.

   LIQUIDITY AND SOURCES OF CAPITAL      14  

5.

   TABLES AND NOTES      16  
   5.1 CONSOLIDATED STATEMENT OF INCOME YPF SOCIEDAD ANONIMA AND CONTROLLED COMPANIES      17  
   5.2 CONSOLIDATED BALANCE SHEET YPF SOCIEDAD ANONIMA AND CONTROLLED COMPANIES      18  
   5.3 CONSOLIDATED STATEMENT OF CASH FLOW YPF SOCIEDAD ANONIMA AND CONTROLLED COMPANIES      19  
   5.4 CONSOLIDATED BUSINESS SEGMENT INFORMATION      20  
   5.5 MAIN FINANCIAL MAGNITUDES IN U.S. DOLLARS      21  
   5.6 MAIN PHYSICAL MAGNITUDES      22  

 

2


Table of Contents
LOGO    Consolidated Results Q2 2017

 

 

 

 

Adjusted EBITDA for Q2 2017 was Ps 16.2 billion, 5.8% lower than Q2 2016.

 

Q2

2016

     Q1
2017
     Q2
2017
     Var.%
Q2 17 / Q2 16
   

GENERAL

   Jan-Jun
2016
     Jan-Jun
2017
     Var.%
2017 / 2016
 
  52,759      57,003        60,162        14.0  

Revenues

(Million Ps)

     99,693        117,165        17.5
  5,318        4,511        3,466        -34.8  

Operating income

(Million Ps)

     6,936        7,977        15.0
  -753        192        272        136.1  

Net income

(Million Ps)

     102        464        354.9
  17,181        16,826        16,177        -5.8  

Adj. EBITDA

(Million Ps)

     29,674        33,003        11.2
  -1.89        0.06        0.54        128.7  

Earnings per share

(Ps per Share)

     0.65        0.60        -7.2
  14,498        11,950        13,029        -10.1  

Capital Expenditures

(Million Ps)

     29,239        24,979        -14.6

Adjusted EBITDA = Net income attributable to shareholders + Net income (loss) for non-controlling interest—Deferred income tax—Income tax—Financial income (losses) gains on liabilities—Financial income gains (losses) on assets—Income on investments in companies + Depreciation of property, plant and equipment + Amortization of intangible assets.

(Amounts are expressed in billions of Argentine pesos, except where indicated)

1. MAIN MILESTONES AND ECONOMIC MAGNITUDES FOR Q2 2017

 

    Revenues for Q2 2017 were Ps 60.2 billion, 14.0% higher than Q2 2016.

 

    Operating income for Q2 2017 was Ps 3.5 billion, 34.8% lower than Q2 2016.

 

    Net income for Q2 2017 was a gain of Ps 0.3 billion compared to net loss of Ps 0.8 billion recorded for Q2 2016.

 

    Hydrocarbon production for Q2 2017 was 550.1 Kboed, 4.2% lower than Q2 2016. Crude oil production for Q2 2017 was 218.3 Kbbld, 10.1% lower than Q2 2016. Natural gas production for Q2 2017 was 44.6 Mm3d, 0.5% lower than Q2 2016. NGL production for Q2 2017 was 51.4 Kbbld, 3.7% higher than Q2 2016.

 

    Refinery processing levels in the Downstream business segment for Q2 2017 were 92.2%, 2.2% higher than Q2 2016.

 

    Capital expenditures in property, plant and equipment for Q2 2017 were Ps 13.0 billion, 10.1% lower than Ps 14.5 billion in Q2 2016.

 

    Operating cash flow for Q2 2017 was Ps 13.0 billion, 96.3% higher than Q2 2016.

 

3


Table of Contents
LOGO    Consolidated Results Q2 2017

 

 

 

 

2. ANALYSIS OF RESULTS FOR Q2 2017

Revenues for Q2 2017 were Ps 60.2 billion, 14.0% higher than Q2 2016, due primarily to the following factors:

 

    Gasoline revenues increased Ps 1.9 billion, 17.0% higher than Q2 2016, due to a 7.4% increase in gasoline mix prices and an 8.9% increase in sales volumes, including a 29.9% increase in sales volumes of Infinia gasoline, a premium gasoline product;

 

    Natural gas revenues increased Ps 1.8 billion, 20.1% higher than Q2 2016, due to a 19.1% increase in prices in Argentine peso terms, as a result of an increase in third party sale prices and the effect of the stimulus program for the surplus injection of natural gas on incremental production (“Gas Plan”), as well as a 0.8% increase in sales volumes;

 

    Retail natural gas revenues (residential and small business and companies) increased Ps 1.6 billion, 93.5% higher than Q2 2016, due to YPF’s controlled company Metrogas S.A. (“Metrogas”), which recorded a 144.5% increase in prices for a total revenue increase of Ps 1.5 billion, 79.3% higher than Q2 2016, which was partially offset by a 26.7% decrease in sales volumes;

 

    Asphalt revenues in the Argentine domestic market increased Ps 0.5 billion, 245.7% higher than Q2 2016, due to a 188.4% increase in sales volumes and a 19.9% increase in prices;

 

    Diesel revenues increased Ps 45 million, 0.2% higher than Q2 2016, due to a 4.5% increase in diesel mix prices, which was partially offset by a 4.1% decrease in sales volumes as a result of lower sales to power generation plants, despite higher sale volumes in the agriculture and transportation markets, and a 23.3% increase in sales volumes of Infinia diesel, a premium diesel product;

 

    Fuel oil revenues in the Argentine domestic market decreased Ps 1.0 billion, 37.7% lower than Q2 2016, due to a 24.7% decrease in sales volumes to power generation plants and a 17.2% decrease in prices; and

 

    Export revenues increased Ps 0.7 billion, 17.0% higher than Q2 2016, due primarily to a 48.0% increase in export revenues of jet fuel as a result of increases in prices in Argentine peso terms, as well as a 45.2% increase in exports of petrochemical products in sales volumes and prices, a 157.8% increase in exports of liquefied petroleum gas, and exports of virgin naphtha, which did not record export volumes in Q2 2016. Exports of flour and soybean oil decreased Ps 61 million, 3.5% lower than Q2 2016.

Cost of sales for Q2 2017 was Ps 49.7 billion, 16.0% higher than Q2 2016. This includes a 9.1% increase in production costs and a 32.8% increase in purchases. Cash costs, which include costs of production and purchases but exclude depreciation and amortization, increased by 19.0%. This increase was driven by the following factors:

a) Costs of production:

 

    Lifting costs increased Ps 1.0 billion, 11.1% higher than Q2 2016, reflecting a 15.5% increase in the unit indicator in Argentine peso terms; which was partially offset by decreased production during the period;

 

4


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LOGO    Consolidated Results Q2 2017

 

 

 

 

    Depreciation of property, plant and equipment increased Ps 0.7 billion, 6.6% higher than Q2 2016, due to an increase in the value of assets based on their valuation in U.S. dollars, which is the functional currency of the company, and the commencement of operations at the new Coke unit in the La Plata refinery in Q4 2016;

 

    Transportation costs increased Ps 0.4 billion, 23.6% higher than Q2 2016, due primarily to increases in Argentine domestic transportation rates;

 

    Production costs related to refining increased Ps 0.3 billion, 13.4% higher than Q2 2016, due primarily to increased costs for the consumption of materials, spare parts, electricity and other supplies and fuels, reflecting an 11.0% increase in the unit indicator in Argentine peso terms; and

 

    Royalties increased Ps 79 million, 2.1% higher than Q2 2016. This increase was due to a Ps 218 million increase in royalties for natural gas production as a result of higher wellhead values of these products, partially offset by a Ps 139 million decrease in royalties for crude oil production as a result of lower production and lower wellhead values.

b) Purchases:

 

    Crude oil purchases from third parties increased Ps 1.5 billion, 46.7% higher than Q2 2016, due to a 54.8% increase in volumes purchased driven by lower production during the period, partially offset by a 5.2% decrease in the purchase price in Argentine peso terms, related to the 2017 crude oil pricing structure in the Argentine domestic market agreed upon between producers and refiners;

 

    Biofuel purchases increased Ps 1.1 billion, 33.3% higher than Q2 2016, due to higher FAME and ethanol biofuel prices of 12.7% and 21.5%, respectively, a 26.2% increase in volumes purchased of ethanol biofuel and a 6.0% increase in volumes purchased of FAME;

 

    Natural gas purchases from third parties for resale to the retail market (residential and small business and companies) increased Ps 0.8 billion, 73.6% higher than Q2 2016, due to an 80.5% increase in prices, which was partially offset by a 3.8% decrease in volumes purchased;

 

    Grain purchases in the agricultural sales segment through the form of barter, which were recorded as purchases for accounting purposes, increased Ps 0.4 billion, 22.0% higher than Q2 2016, due primarily to a 27.6% increase in volumes purchased, which was partially offset by a 4.4% decrease in prices; and

 

    Fuel imports increased Ps 0.3 billion, 15.3% higher than Q2 2016, due primarily to higher diesel and jet fuel prices of 28.4% and 27.1%, respectively, which was partially offset by a 22.9% decrease in volumes imported of jet fuel.

Administration expenses for Q2 2017 were Ps 2.0 billion, 9.2% higher than Q2 2016. The increase was due primarily to higher personnel expenses and higher IT costs.

Selling expenses for Q2 2017 were Ps 4.2 billion, 13.8% higher than Q2 2016. This increase was driven primarily by increases in transport expenses, due primarily to higher rates paid for Argentine domestic transport of fuels, increases in personnel costs and taxes on bank debits and credits.

 

5


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LOGO    Consolidated Results Q2 2017

 

 

 

 

Exploration expenses for Q2 2017 were Ps 0.8 billion, 12.9% higher than Q2 2016.

Other operating results, net, for Q2 2017 was a gain of Ps 22 million, a 98.7% decrease compared to a gain of Ps 1.6 billion for Q2 2016. This decrease was due to a net gain of Ps 1.5 billion from the deconsolidation of Maxus Energy Corporation, Tierra Solutions Inc., Maxus International Energy Company, Maxus (US) Exploration and Gateway Coal Company (collectively, the “Maxus Entities”) in Q2 2016.

Financial results for Q2 2017 were a gain of Ps 0.9 billion compared to a loss of Ps 4.7 billion in Q2 2016. This change was driven primarily by positive foreign exchange effects on net liabilities in Argentine peso terms of Ps 5.0 billion, due to the greater devaluation of the Argentine peso in Q2 2017 compared to Q2 2016. Higher interest expenses of Ps 28 million were also recorded in Q2 2017 due to increased levels of debt in Q2 2017 compared to Q2 2016, which was offset by lower interest rates for debt in Argentine peso terms. In addition, the fair value of investments in financial assets increased Ps. 0.5 billion.

Income tax for Q2 2017 was Ps 4.2 billion compared to Ps 1.6 billion in Q2 2016. This increase was mainly due to higher deferred tax of Ps 2.7 billion, partially offset by a Ps 16 million decrease in current income tax. The higher deferred tax charge is mainly due to the lower difference generated by the revaluation of the book values in relation to the property, plant and equipment tax values maintained in historical Argentine pesos to be deducted from tax as they are depreciated, taking into account the company’s functional currency and the greater devaluation of the Argentine peso recorded in Q2 2017 compared to Q2 2016.

Net income for Q2 2017 was a gain of Ps 0.3 billion, an increase of 136.1% compared to a loss of Ps 0.8 billion in Q2 2016.

Total capital expenditures for property, plant and equipment in Q2 2017 were Ps 13.0 billion, 10.1% lower than Q2 2016.

 

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LOGO    Consolidated Results Q2 2017

 

 

 

 

3. ANALYSIS OF OPERATING RESULTS BY BUSINESS SEGMENT FOR Q2 2017

3.1 UPSTREAM

 

Q2
2016

     Q1
2017
     Q2
2017
     Var.%
Q2 17 / Q2 16
   

UPSTREAM

   Jan-Jun
2016
     Jan-Jun
2017
     Var.%
2017 / 2016
 
  1,716        899        -884        -151.5  

Operating income

(Million Ps)

     6,157        15        -99.8
  27,839        27,777        26,606        -4.4  

Revenues

(Million Ps)

     57,169        54,383        -4.9
  242.9        234.0        218.3        -10.1  

Crude oil production

(Kbbld)

     245.9        226.1        -8.1
  49.6        54.7        51.4        3.7  

NGL production

(Kbbld)

     52.9        53.1        0.2
  44.8        45.3        44.6        -0.5  

Gas production

(Mm3d)

     44.4        44.9        1.2
  574.0        573.5        550.1        -4.2  

Total production

(Kboed)

     578.1        561.7        -2.8
  738        593        833        12.9  

Exploration costs

(Million Ps)

     1,192        1,426        19.6
  11,409        9,448        9,905        -13.2  

Capital Expenditures (*)

(Million Ps)

     23,664        19,353        -18.2
  9,734        9,935        10,079        3.5  

Depreciation

(Million Ps)

     18,830        20,014        6.3
           Realization Prices         
  60.7        53.0        52.5        -13.4  

Crude oil prices in domestic market

Period average (USD/bbl)

     61.3        52.8        -13.9
  4.73        4.96        4.91        3.8  

Average gas price

(USD/Mmbtu)

     4.72        4.93        4.4

Operating income for the Upstream business segment for Q2 2017 was an operating loss of Ps 0.9 billion, compared to an operating income of Ps 1.7 billion for Q2 2016.

Revenues were Ps 26.6 billion for Q2 2017, 4.4% lower than Q2 2016, due primarily to the following factors:

 

    Natural gas revenues from sales to third parties increased Ps 1.8 billion, 20.1% higher than Q2 2016, due to a 19.1% increase in prices in Argentine peso terms and a 0.8% increase in sales volumes. All natural gas produced, net of internal consumption, is allocated to the Gas and Energy segment for sale to third parties at an intersegment price that includes the Gas Plan.

 

    Crude oil revenues decreased Ps 3.1 billion, 16.0% lower than Q2 2016, due to a 4.3% decrease in Argentine peso terms of the transfer price between the business segments, while volumes transferred between business segments and to third parties decreased 10.9% and 64.3%, respectively.

 

    The price obtained in U.S. dollars for crude oil in the Argentine domestic market for Q2 2017 decreased 13.4% to US$52.50/barrel, due to the 2017 pricing structure agreed to between producers and refiners. The price obtained in U.S. dollars for natural gas was US$4.91/Mmbtu, 3.8% higher than Q2 2016.

 

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LOGO    Consolidated Results Q2 2017

 

 

 

 

Hydrocarbon production for Q2 2017 was 550.1 Kboed, 4.2% lower than Q2 2016. Crude oil production for Q2 2017 was 218.3 Kbbld, 10.1% lower than Q2 2016, due mainly to heavy rain and snow conditions that affected the province of Chubut, and to a lesser extent the province of Santa Cruz, a labor union dispute during Q2 2017 and, to a lesser extent, the deconsolidation of the Maxus Entities. Natural gas production for Q2 2017 was 44.6 Mm3d, 0.5% lower than Q2 2016. NGL production for Q2 2017 was 51.4 Kbbld, 3.7% higher than Q2 2016.

With respect to development activity, 112 wells were put in production in Q2 2017, including the shale and tight wells mentioned below.

Hydrocarbon production in shale areas, net to YPF for Q2 2017 was 35.3 Kboed, 22.1% higher than Q2 2016, including 16.7 Kbbld of crude oil, 5.7 Kbbld of NGL and 2.8 Mm3d of natural gas. During Q2 2017, 22 wells were put in production targeting the Vaca Muerta formation, for a total of 577 wells, including 8 active drilling rigs and 7 workovers.

With respect to tight gas development, net production in Q2 2017 reached a total of 13.84 Mm3d, of which 87.1% comes from areas operated by YPF. During Q2 2017, 21 new wells were put into production, 8 in Aguada Toledo-Sierra Barrosa, 4 in Rincón del Mangrullo and 9 in Estación Fernandez Oro.

Operating costs (excluding exploration costs) for Q2 2017 were Ps 26.3 billion, 3.8% higher than Q2 2016, mainly due to the following:

 

    Lifting costs increased Ps 1.0 billion, an 11.1% increase, reflecting a 15.5% increase in the unit indicator in Argentine peso terms, partially offset by the decrease in production discussed above;

 

    Depreciation of property, plant and equipment increased Ps 0.3 billion, a 3.5% increase, due to an increase in the value of assets based on their valuation in U.S. dollars, which is the functional currency of the company; and

 

    Royalties increased Ps 79 million, a 2.1% increase, due to an increase in royalties for natural gas production of Ps 218 million as a result of higher wellhead values of these products, partially offset by a decrease in royalties for crude oil production of Ps 139 million as a result of lower production and lower wellhead values.

Exploration expenses for Q2 2017 were Ps 0.8 billion, an increase of 12.9% compared to Ps 0.7 billion for Q2 2016. This change was due primarily to a Ps 69 million increase in negative results from unproductive exploratory wells in Q2 2017 compared to Q2 2016. Total exploration investments increased Ps 52 million, 22.9% higher than Q2 2016.

Unit cash costs in U.S. dollars increased 3.8% to US$21.30/boe for Q2 2017 from US$20.50/boe for Q2 2016, including taxes of US$5.60/boe and US$5.90/boe, respectively. In turn, the average lifting cost for YPF was US$12.80/boe, 4.5% higher than US$12.30/boe for Q2 2016.

CAPEX

Capital expenditures for the Upstream business segment for Q2 2017 were Ps 9.9 billion, 13.2% lower than Q2 2016.

Of these capital expenditures, 71% were invested in drilling and workover activities, 25% in facilities, and the remaining 4% in exploration and other activities in the Upstream business segment.

 

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LOGO    Consolidated Results Q2 2017

 

 

 

 

In the Neuquina basin area, activities for Q2 2017 were focused on the development of the Loma Campana, Aguada Toledo – Sierra Barrosa (Lajas), Rincón del Mangrullo, El Orejano, La Amarga Chica, Loma La Lata (Sierras Blancas), Cerro Bandera, EFO, Río Neuquén and Chachahuen blocks. Development activities continued at the Cuyana basin, mainly in the Barrancas, La Ventana, Mesa Verde, Ugarteche, Vizcacheras, Cerro Fortunoso, Desfiladero Bayo, Puesto Molina and La Ribera blocks. In the Golfo San Jorge basin, activity was concentrated in the Manantiales Behr and El Trébol-Escalante blocks, while perforation activity commenced in the Lago Fuego block in the Austral basin.

Exploration activities for Q2 2017 covered the Neuquina, Golfo San Jorge and Cuyana basins. In the Neuquina basin, exploratory activity was in the Salinas del Huitrín, Estación Fernandez Oro, Paso de las Bardas and Agua Salada blocks. In the Golfo San Jorge basin, activity focused on the evaluation of deep targets in the Los Perales block. In the Cuyana basin, exploratory activity was performed in the Zampal Norte block.

Outside of Argentina, an exploratory well was drilled in the San Sebastián block located in the Chilean Austral basin.

During Q2 2017, three (one crude oil and two gas) exploratory wells were completed.

 

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LOGO    Consolidated Results Q2 2017

 

 

 

 

3.2 DOWNSTREAM

 

Q2

2016

     Q1
2017
    Q2
2017
    Var.%
Q2 17 / Q2 16
   

DOWNSTREAM

   Jan-Jun
2016
    Jan-Jun
2017
    Var.%
2017 / 2016
 
  3,039        4,364       3,093       1.8  

Operating income

(Million Ps)

     2,241       7,457       232.8
  41,447        44,180       45,611       10.0  

Revenues

(Million Ps)

     77,407       89,791       16.0
  4,126        3,952       4,172       1.1  

Sales of refined products in domestic market

(Km3)

     8,163       8,124       -0.5
  275        419       289       5.1  

Exportation of refined products

(Km3)

     767       708       -7.7
  207        173       214       3.6  

Sales of petrochemical products in domestic market (*)

(Ktn)

     395       387       -1.9
  42        44       52       24.1  

Exportation of petrochemical products

(Ktn)

     69       96       39.3
  288        291       295       2.2  

Crude oil processed

(Kboed)

     291       293       0.5
  90%        91     92     2.2  

Refinery utilization

(%)

     91     92     0.7
  2,396        1,279       1,935       -19.2  

Capital Expenditures

(Million Ps)

     4,030       3,214       -20.2
  1,276        1,569       1,621       27.0  

Depreciation

(Million Ps)

     2,478       3,190       28.7
  676        667       655       -3.1  

Average domestic market gasoline price (**)

(USD/m3)

     616       661       7.4
  661        644       624       -5.6  

Average domestic market diesel price (**)

(USD/m3)

     612       633       3.4

 

(*) Fertilizer sales not included
(**) Includes gross income and net of deductions, commissions and other taxes

Operating income for the Downstream business segment for Q2 2017 was Ps 3.1 billion, 1.8% higher than Q2 2016, compared to Ps 3.0 billion for Q2 2016.

Revenues were Ps 45.6 billion for Q2 2017, 10.0% higher than Q2 2016, due primarily to the following factors:

 

    Gasoline revenues increased Ps 1.9 billion, 17.0% higher than Q2 2016, due to a 7.4% increase in gasoline mix prices and an 8.9% increase in sales volumes, including a 29.9% increase in sales volumes of Infinia gasoline, a premium gasoline product;

 

    Asphalt revenues in the Argentine domestic market increased Ps 0.5 billion, 245.7% higher than Q2 2016, due to a 188.4% increase in sales volumes and a 19.9% increase in prices;

 

    Diesel revenues increased Ps 45 million, 0.2% higher than Q2 2016, due to a 4.5% increase in diesel mix prices, which was partially offset by a 4.1% decrease in sales volumes as a result of lower sales to power generation plants, despite higher sales volumes in the agriculture and transportation markets, and a 23.3% increase in sales volumes of Infinia diesel, a premium diesel product;

 

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    Fuel oil revenues in the Argentine domestic market decreased Ps 1.0 billion, 37.7% lower than Q2 2016, due to a 24.7% decrease in sales volumes to power generation plants and a 17.2% decrease in prices; and

 

    Export revenues increased Ps 0.7 billion, 17.6% higher than Q2 2016, due to a 48.0% increase in export revenues of jet fuel as a result of increases in prices in Argentine peso terms, as well as a 45.2% increase in exports of petrochemical products in sales volumes and prices, a 157.8% increase in exports of liquefied petroleum gas, and exports of virgin naphtha, which did not record export volumes in Q2 2016. Exports of flour and soybean oil decreased Ps 61 million, 3.5% lower than Q2 2016.

Cost of sales and operating expenses for Q2 2017 increased Ps 3.5 billion, or 10.0% compared to Q2 2016, due primarily to the following factors:

 

    Crude oil purchases decreased Ps 1.2 billion, 5.6% lower than Q2 2016, due to a decrease in prices in Argentine peso terms of crude oil purchased of 4.4%, related to the 2017 crude oil pricing structure in the Argentine domestic market agreed upon between producers and refiners, and lower volumes purchased. The volume of crude oil transferred from the Upstream business segment decreased 10.9%, and volumes purchased from third parties increased 54.8%;

 

    Biofuel purchases increased Ps 1.1 billion, 33.3% higher than Q2 2016, due to higher FAME and ethanol biofuel prices of 12.7% and 21.5%, respectively, a 26.2% increase in volumes purchased of ethanol biofuel and a 6.0% increase in volumes purchased of FAME;

 

    Fuel imports increased Ps 0.3 billion, 15.3% higher than Q2 2016, due to higher diesel and jet fuel prices of 28.4% and 27.1%, respectively, which was partially offset by a 22.9% decrease in volumes imported of jet fuel;

 

    Grain purchases in the agricultural sales segment through the form of barter, which were recorded as purchases for accounting purposes, increased Ps 0.4 billion, 22.0% higher than Q2 2016;

 

    Costs of products sold increased Ps 1.5 billion, 76.0% higher than Q2 2016, due to a reduction in the realizable value of inventory compared to Q2 2016;

 

    Production costs related to refining increased Ps 0.3 billion, 13.4% higher than Q2 2016, due primarily to increased costs for consumption of materials, parts, electricity, other supplies and fuel. As a result, taking into account the 2.2% increase in volumes processed, unit refining costs in Q2 2017 were 11.0% higher than Q2 2016. Transportation costs related to production (shipping, oil pipelines, and multiproduct pipelines) increased Ps 0.2 billion, 23.0% higher than Q2 2016; and

 

    Depreciation of property, plant and equipment increased Ps 0.4 billion, 31.0% higher than Q2 2016, resulting from an increase in the value of assets subject to depreciation compared to Q2 2016, taking into account the commencement of operations at the new Coke unit at the La Plata refinery as of Q4 2016 and an increase in asset values, based on their valuation in U.S. dollars, the functional currency of the company.

Selling expenses increased Ps 0.5 billion, 13.9% higher than Q2 2016, due to higher transportation costs related to an increase in Argentine domestic fuel transportation rates, increased advertising and promotional activities and taxes on bank debts and credits.

 

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The volume of crude oil processed in Q2 2017 was 295 Kbbld, 2.2% higher than Q2 2016. These higher processing levels resulted in a 5.3% increase in gasoline production, partially offset by a 2.6% decrease in diesel production and a 31.4% decrease in fuel oil production. In addition, the company increased its production of jet fuel, liquefied petroleum gas and petroleum coal compared to Q2 2016.

CAPEX

Capital expenditures for the Downstream business segment for Q2 2017 were Ps 1.9 billion, a 19.2% decrease compared to Q2 2016.

Improvements to the Topping III unit in the Luján de Cuyo refinery continued, and it is expected to commence operations in the second half of 2017. Work to improve YPF’s logistical facilities and optimize safety and environmental performance also continued.

 

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3.3 GAS AND ENERGY

 

Q2
2016

     Q1
2017
     Q2
2017
     Var.%
Q2 17 / Q2 16
   

GAS & POWER

   Jan-Jun
2016
     Jan-Jun
2017
     Var.%
2017 / 2016
 
  393        558        1,025        160.8  

Operating income

(Million Ps)

     397        1,583        298.7
  6,806        13,745        15,749        131.4  

Revenues

(Million Ps)

     12,262        29,494        140.5
  380        943        992        161.1  

Capital Expenditures

(Million Ps)

     837        1,935        131.2
  57        65        65        14.0  

Depreciation

(Million Ps)

     145        130        -10.3

In its 2016 annual Financial Statements, YPF began to report its Gas and Energy business segment, which includes activities related to transportation, distribution and the sale of natural gas to third parties, regasification services for liquefied natural gas (LNG) and electricity generation.

Since 2017, the Gas and Energy Executive Vice-presidency of the company assumed all responsibility for the administration and management of collections related to the Gas Plan. As a result, the Gas and Energy segment began to record revenues derived from the Gas Plan within the segment, to later be transferred to the Upstream segment as an intersegment operation.

Operating income for this business segment in Q2 2017 was Ps 1.0 billion, compared to Ps 0.4 billion in Q2 2016. This increase was due primarily to improved results of regasification services for LNG in Bahía Blanca and Escobar in Argentine peso terms and to the incremental tariff restructuring by YPF’s controlled company Metrogas, which recorded an operating income of Ps 0.6 billion in Q2 2017, compared to Ps 0.2 billion in Q2 2016. YPF also recorded improved operating results of Ps 0.1 billion, 89.0% higher than Q2 2016, from its controlled company YPF Energía Eléctrica S.A.

CAPEX

Capital expenditures for the Gas and Energy business segment for Q2 2017 were Ps 1.0 billion, 161.1% higher than Q2 2016.

In Q2 2017, construction work on the new thermoelectric plants Loma Campana I and Este, located in the basin of the same name, and the new thermoelectric plants, Y-GEN and Y-GEN II, in Loma Campana in the province of Neuquén and El Bracho in the province of Tucumán continued. Progress was also made on the Manantiales Behr wind farm in Comodoro Rivadavia. The Y-GEN and YGEN II projects are the result of a joint venture with General Electric.

It is expected that Loma Campana I, Loma Campana Este and Y-GEN will commence operations in the second half of 2017, and Y-GEN II will commence operations in the first half of 2018. The wind farm will gradually commence operations through the first half of 2018.

 

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3.4 CENTRAL ADMINISTRATION AND OTHER

This business segment mainly involves corporate costs and other activities that are not reported in any of the previously-mentioned business segments.

Corporate operating income for Q2 2017 was a loss of Ps 0.5 billion, compared to Ps 0.6 billion in Q2 2016. This change was due primarily to the net gain of Ps 1.5 billion from the deconsolidation of the Maxus Entities in Q2 2016. The remaining change was driven primarily by higher personnel expenses and higher IT costs, partially offset by decreases in contingencies for legal proceedings and higher results obtained by YPF’s controlled company, A-Evangelista S.A.

Consolidation adjustments to eliminate results among business segments not transferred to third parties were Ps 0.8 billion for Q2 2017. These adjustments were negative Ps 0.4 billion in Q2 2016. In Q2 2017, there was a decrease in the difference between transfer prices between businesses and the replacement cost of the company’s inventory, as compared to an increase in such difference in Q2 2016.

3.5 RELATED COMPANIES

Results from related companies for Q2 2017 were a gain of Ps 0.1 billion, compared to a gain of Ps 0.2 billion for Q2 2016. This decrease was due primarily to lower results obtained by Profertil, Compañía Mega and Refinor.

4. LIQUIDITY AND SOURCES OF CAPITAL

In Q2 2017, net cash flows provided by operating activities were Ps 13.0 billion, 96.3% higher than Q2 2016. This increase of Ps 6.4 billion was due to an increase in working capital in Q2 2017 and a Ps 0.6 billion lower income tax payment, which was partially offset by a Ps 1.0 billion decrease in adjusted EBITDA. Among the principal reasons for the increase in working capital was the collection of accounts receivable owed to the company, including among others, accounts receivables derived from the stimulus program for the surplus injection of natural gas during Q2 2017 compared to Q2 2016 when no collections were received from this program.

Net cash flows used in investing activities were Ps 12.7 billion for Q2 2017, 11.9% lower than Q2 2016. Investments in fixed and intangible assets were Ps 13.1 billion in Q2 2017, 14.3% lower than Q2 2016.

For Q2 2017, the company’s net cash flows provided by financing activities were Ps 1.3 billion as compared to net cash flows used in financing activities of Ps 2.3 billion in Q2 2016. This change reflects a net increase of Ps 3.5 billion in debt issuance and refinancing of maturing debt and a decrease of Ps 0.2 billion in interest payments for Q2 2017 compared to Q2 2016.

Cash and cash equivalents, together with the company’s investment in Argentine sovereign bonds, including those received to cancel the accounts receivables of the Gas Plan program for the year 2015, which are still kept in the portfolio, were Ps 29.2 billion as of June 30, 2017. This cash position increased at the beginning of July with the new international issuance of U.S.$750 million in debt securities.

At the end of Q2 2017, total debt in U.S. dollars was US$9.7 billion, net debt was US$7.9 billion(1) and the net debt/adjusted EBITDA LTM ratio was 1.98x(2).

The average interest rate for debt denominated in Argentine pesos at the end of Q2 2017 was 22.24%, while the average interest rate for debt denominated in U.S. dollars was 7.83%.

 

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The following table lists issuances of YPF’s debt securities made during and after Q2 2017:

 

YPF Note

   Amount     Interest Rate     Maturity  

Series LII

     USD 300 M  (*)      16.5     60 months  

Series LIII (3Q 2017)

     USD 750 M       6.95     120 months  

(*) Peso Linked

 

(1) Net Debt: Includes investments in financial assets (government securities) of US$947 million at market value

 

(2) Net Debt: US$7,925 million/adjusted EBITDA LTM: US$3,993 million = 1.98x

 

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5. TABLES AND NOTES Q2 2017 Results

 


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5.1 CONSOLIDATED STATEMENT OF INCOME

YPF SOCIEDAD ANONIMA AND CONTROLLED COMPANIES

(Unaudited, figures expressed in millions of pesos)

 

Q2

2016

    Q1
2017
    Q2
2017
    Var.%
Q2 17 / Q2 16
   

 

   Jan-Jun
2016
    Jan-Jun
2017
    Var.%
2016 / 2017
 
  52,759       57,003       60,162       14.0   Revenues      99,693       117,165       17.5
  (42,819     (45,798     (49,675     16.0   Costs      (82,950     (95,473     15.1

 

 

   

 

 

   

 

 

   

 

 

   

 

  

 

 

   

 

 

   

 

 

 
  9,940       11,205       10,487       5.5   Gross profit      16,743       21,692       29.6

 

 

   

 

 

   

 

 

   

 

 

   

 

  

 

 

   

 

 

   

 

 

 
  (3,699     (3,887     (4,209     13.8   Selling expenses      (6,744     (8,096     20.0
  (1,833     (1,790     (2,001     9.2   Administration expenses      (3,319     (3,791     14.2
  (738     (593     (833     12.9   Exploration expenses      (1,192     (1,426     19.6
  —         —         —             Impairment of property, plant and equipment and intangible assets      —         —          
  1,648       (424     22       -98.7   Other operating results, net      1,448       (402     -127.8

 

 

   

 

 

   

 

 

   

 

 

   

 

  

 

 

   

 

 

   

 

 

 
  5,318       4,511       3,466       -34.8   Operating income (loss)      6,936       7,977       15.0

 

 

   

 

 

   

 

 

   

 

 

   

 

  

 

 

   

 

 

   

 

 

 
  166       22       92       -44.6   Results on investments in companies and joint ventures      263       114       -56.7
  1,988       1,612       3,001       51.0   Finance Income      11,109       4,613       -58.5
  (6,690     (8,848     (2,720     -59.3   Finance Cost      (12,170     (11,568     -4.9
  42       75       658       1466.7   Other financial results      419       733       74.9

 

 

   

 

 

   

 

 

   

 

 

   

 

  

 

 

   

 

 

   

 

 

 
  (4,660     (7,161     939       -120.2   Financial results, net      (642     (6,222     869.2

 

 

   

 

 

   

 

 

   

 

 

   

 

  

 

 

   

 

 

   

 

 

 
  824       (2,628     4,497       445.8   Net (loss) profit before income tax      6,557       1,869       -71.5

 

 

   

 

 

   

 

 

   

 

 

   

 

  

 

 

   

 

 

   

 

 

 
  (1,577     2,820       (4,225     167.9 %    Income tax      (6,455     (1,405     -78.2

 

 

   

 

 

   

 

 

   

 

 

   

 

  

 

 

   

 

 

   

 

 

 
  (753     192       272       -136.1   Net (loss) profit for the period      102       464       354.9

 

 

   

 

 

   

 

 

   

 

 

   

 

  

 

 

   

 

 

   

 

 

 
  (10     167       60       Net (loss) profits for noncontrolling interest      (151     227    

 

 

   

 

 

   

 

 

   

 

 

   

 

  

 

 

   

 

 

   

 

 

 
  (743     25       212       -128.5   Net (loss) profit for shareholders of the parent company      253       237       -6.3

 

 

   

 

 

   

 

 

   

 

 

   

 

  

 

 

   

 

 

   

 

 

 
  (1.89     0.06       0.54       -128.5   Earnings per share, basic and diluted      0.65       0.60       -7.2

 

 

   

 

 

   

 

 

   

 

 

   

 

  

 

 

   

 

 

   

 

 

 
  4,309       (3,643     9,593       122.6   Other comprehensive Income      19,716       5,950       -69.8

 

 

   

 

 

   

 

 

   

 

 

   

 

  

 

 

   

 

 

   

 

 

 
  3,556       (3,451     9,865       177.4   Total comprehensive income for the period      19,818       6,414       -67.6

 

 

   

 

 

   

 

 

   

 

 

   

 

  

 

 

   

 

 

   

 

 

 
  17,181       16,826       16,177       -5.8   Adj. EBITDA (*)      29,674       33,003       11.2

 

 

   

 

 

   

 

 

   

 

 

   

 

  

 

 

   

 

 

   

 

 

 

Note: Information reported in accordance with International Financial Reporting Standards (IFRS), except adjusted EBITDA.

 

(*) Adjusted EBITDA = Net income attributable to shareholders + Net income (loss) for non-controlling interest—Deferred income tax—Income tax—Financial income (losses) gains on liabilities—Financial income gains (losses) on assets—Income on investments in companies + Depreciation of properties, plant and equipment + Amortization of intangible assets + Unproductive exploratory drillings.

 

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5.2 CONSOLIDATED BALANCE SHEET

YPF SOCIEDAD ANONIMA AND CONTROLLED COMPANIES

(Q2 2017 figures unaudited, figures expressed in millions of pesos)

CONSOLIDATED BALANCE SHEETS

(Amounts expressed in million of Argentine pesos )

 

     12/31/2016     06/30/2017  

Noncurrent Assets

    

Intangible assets

     8,114       8,707  

Properties, plant and equipment

     308,014       320,643  

Investments in companies and joint ventures

     5,488       5,772  

Deferred tax assets, net

     564       354  

Other receivables

     3,909       1,886  

Trade receivables

     87       94  

Investment in financial assets

     7,737       7,736  
  

 

 

   

 

 

 

Total Non-current assets

     333,913       345,192  
  

 

 

   

 

 

 

Current Assets

    

Inventories

     21,820       24,031  

Other receivables

     13,456       10,712  

Trade receivables

     33,645       32,979  

Investment in financial assets

     7,548       7,966  

Cash and equivalents

     10,757       13,455  
  

 

 

   

 

 

 

Total current assets

     87,226       89,143  
  

 

 

   

 

 

 

Total assets

     421,139       434,335  
  

 

 

   

 

 

 

Shareholders’ equity

    

Shareholders’ contributions

     10,403       10,372  

Reserves, other comprehensive income and retained earnings

     108,352       113,823  

Noncontrolling interest

     (94     133  
  

 

 

   

 

 

 

Total Shareholders’ equity

     118,661       124,328  
  

 

 

   

 

 

 

Noncurrent Liabilities

    

Provisions

     47,358       54,181  

Deferred tax liabilities

     42,465       43,422  

Other taxes payable

     98       245  

Loans

     127,568       138,038  

Other liabilities

     336       355  

Accounts payable

     2,187       1,594  
  

 

 

   

 

 

 

Total Noncurrent Liabilities

     220,012       237,835  
  

 

 

   

 

 

 

Current Liabilities

    

Provisions

     1,994       1,838  

Income tax payable

     176       137  

Other taxes payable

     4,440       5,709  

Salaries and social security

     3,094       2,677  

Loans

     26,777       22,520  

Other liabilities

     4,390       1,178  

Accounts payable

     41,595       38,113  
  

 

 

   

 

 

 

Total Current Liabilities

     82,466       72,172  
  

 

 

   

 

 

 

Total Liabilities

     302,478       310,007  
  

 

 

   

 

 

 

Total Liabilities and Shareholders’ Equity

     421,139       434,335  
  

 

 

   

 

 

 

Note: Information reported in accordance with International Financial Reporting Standards (IFRS).

 

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5.3 CONSOLIDATED STATEMENT OF CASH FLOW

YPF SOCIEDAD ANONIMA AND CONTROLLED COMPANIES

(Unaudited, figures expressed in millions of pesos)

 

Q2
2016
     Q1
2017
    Q2
2017
   

 

   Jan-Jun
2016
    Jan-Jun
2017
 
       Operating activities     
  (753)        192       272     Net income (loss)      102       464  
  (166)        (22     (92   Income (loss) from investments in companies and joint ventures      (263     (114
  11,225        11,764       11,972     Depreciation of property, plant and equipment      21,759       23,736  
  170        181       202     Amortization of intangible assets      323       383  
  1,422        869       1,315     Consumpsion of materials and retirement of property, plant and equipment and intagible assets, net of provisions      2,605       2,184  
  1,577        (2,820     4,225     Income tax charge      6,455       1,405  
  1,411        1,671       510     Net increase in provisions      2,503       2,181  
  —          —         —       Impairment of property, plant and equipment and intangible assets      —         —    
  3,966        6,369       (1,024   Interest, exchange differences and other      (700     5,345  
  17        26       44     Stock compensation plan      57       70  
  —          —         —       Changes in assets and liabilities:      —         —    
  (6,922)        1,894       (769       Trade receivables      (14,888     1,125  
  117        3,175       (278       Other receivables      4,635       2,897  
  (1,208)        111       (1,408       Inventories      (119     (1,297
  (2,535)        1,145       (1,156       Accounts payable      (1,757     (11
  311        2,119       (675       Other Taxes payable      (449     1,444  
  368        (651     238         Salaries and Social Securities      (51     (413
  37        (950 )      18         Other liabilities      137       (932 ) 
  (594)        (273 )      (393 )        Decrease in provisions included in liabilities for payments / utilization      (948 )      (666 ) 
  520        95       216         Dividends received      520       311  
  —          —         —           Insurance charge for loss of profit      607       —    
  (821)        (245     (234       Income tax payments      (1,561     (479

 

 

    

 

 

   

 

 

      

 

 

   

 

 

 
  6,614        24,650       12,983     Cash flow from operating activities      17,439       37,633  

 

 

    

 

 

   

 

 

      

 

 

   

 

 

 
       Investing activities     
  (15,299)        (14,574     (13,104   Acquisitions of property, plant and equipment and Intangible assets      (32,602     (27,678
  —          (272     (65   Contributions and acquisitions of interests in companies and joint ventures      —         (337
  910        —         —       Collection for sale of financial assets      910       —    
  13        (3     3     Payments for acquisition of financial assets investments      —         —    
  —          8       503     Interest received from financial assets      —         511  
  —          —         —       Insurance charge for material damages      355       —    

 

 

    

 

 

   

 

 

      

 

 

   

 

 

 
  (14,376)        (14,841 )      (12,663 )    Cash flows from investing activities      (31,337 )      (27,504 ) 

 

 

    

 

 

   

 

 

      

 

 

   

 

 

 
       Financing activities     
  (16,775)        (8,393     (6,687   Payment of loans      (33,954     (15,080
  (3,378)        (5,369     (3,208   Payment of interests      (6,893     (8,577
  17,863        4,769       11,291     Proceeds from loans      54,466       16,060  
  (55)        —         (100   Acquisition of own shares      (55     (100
  —          —         —       Non controling interest contribution      50       —    

 

 

    

 

 

   

 

 

      

 

 

   

 

 

 
  (2,345)        (8,993 )      1,296     Cash flows from financing activities      13,614       (7,697 ) 

 

 

    

 

 

   

 

 

      

 

 

   

 

 

 
  (15)        (149 )      415     Effect of changes in exchange rates on cash and equivalents      938       266  

 

 

    

 

 

   

 

 

      

 

 

   

 

 

 
  (148)        —         —       Deconsolidation of subsidiaries      (148 )      —    

 

 

    

 

 

   

 

 

      

 

 

   

 

 

 
  (10,270)        667       2,031     Increase (decrease) in Cash and Equivalents      506       2,698  

 

 

    

 

 

   

 

 

      

 

 

   

 

 

 
  26,163        10,757       11,424     Cash and equivalents at the beginning of the period      15,387       10,757  
  15,893        11,424       13,455     Cash and equivalents at the end of the period      15,893       13,455  

 

 

    

 

 

   

 

 

      

 

 

   

 

 

 
  (10,270)        667       2,031     Increase (decrease) in Cash and Equivalents      506       2,698  

 

 

    

 

 

   

 

 

      

 

 

   

 

 

 
      

COMPONENTS OF CASH AND EQUIVALENT AT THE END OF THE PERIOD

    
  6,898        5,620       5,438         Cash      6,898       5,438  
  8,995        5,804       8,017         Other Financial Assets      8,995       8,017  

 

 

    

 

 

   

 

 

      

 

 

   

 

 

 
  15,893        11,424       13,455    

TOTAL CASH AND EQUIVALENTS AT THE END OF THE PERIOD

     15,893       13,455  

 

 

    

 

 

   

 

 

      

 

 

   

 

 

 

Note: Information reported in accordance with International Financial Reporting Standards (IFRS).

 

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5.4 CONSOLIDATED BUSINESS SEGMENT INFORMATION

YPF SOCIEDAD ANONIMA AND CONTROLLED COMPANIES

(Unaudited, figures expressed in millions of pesos)

 

Q2 2017

   Upstream      Gas & Power      Downstream      Corporate &
Other
     Consolidation
Adjustments
     Total  

Revenues

     78        14,808        45,406        483        -613        60,162  

Revenues from intersegment sales

     26,528        941        205        1,791        -29,465        0  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Revenues

     26,606        15,749        45,611        2,274        -30,078        60,162  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Operating Income (loss)

     -884        1,025        3,093        -535        767        3,466  

Investments in companies

     0        53        39        0        0        92  

Depreciation of property, plant and equipment

     10,079        65        1,621        207        0        11,972  

Impairment of property, plant and equipment and intangible assets

     0        0        0        0        0        0  

Acquisitions of fixed assets

     9,905        992        1,935        197        0        13,029  

Assets

     225,272        37,926        133,136        38,676        -675        434,335  

Q2 2016

   Upstream      Gas & Power      Downstream      Corporate &
Other
     Consolidation
Adjustments
     Total  

Revenues

     4,625        6,203        41,212        719        0        52,759  

Revenues from intersegment sales

     23,214        603        235        1,613        -25,665        0  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Revenues

     27,839        6,806        41,447        2,332        -25,665        52,759  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Operating Income (loss)

     1,716        393        3,039        605        -435        5,318  

Investments in companies

     0        94        72        0        0        166  

Depreciation of property, plant and equipment

     9,734        57        1,276        158        0        11,225  

Impairment of property, plant and equipment and intangible assets

     0        0        0        0        0        0  

Acquisitions of fixed assets

     11,394        380        2,396        313        0        14,483  

Assets

     236,173        25,866        125,536        34,739        -1,175        421,139  

 

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LOGO    Consolidated Results Q2 2017

 

 

 

 

5.5 MAIN FINANCIAL MAGNITUDES IN U.S. DOLLARS

(Unaudited figures)

 

Million USD    2016
Q2
     2017
Q1
     2017
Q2
     Var
Q2 17 / Q2 16
    2016
Jan-Jun
     2017
Jan-Jun
     Var
2017 / 2016
 

INCOME STATMENT

                   

Revenues

     3,720        3,648        3,837        3.1     6,971        7,484        7.4

Costs of sales

     -3,019        -2,931        -3,168        4.9     -5,799        -6,098        5.2
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Gross profit

     701        717        669        -4.6     1,172        1,386        18.2

Other operating expenses, net

     -326        -428        936        -387.1     -685        507        -174.1
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Operating income

     375        289        221        -41.1     487        510        4.6

Depreciation and impairment of property, plant &

     792        753        764        -3.5     1,521        1,516        -0.3

equipment and intangible assets

                      0.0

Amortization of intangible assets

     12        12        13        7.5     23        24        8.3

Unproductive exploratory drillings

     33        24        34        3.8     46        58        25.8
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Adj. EBITDA

     1,212        1,077        1,032        -14.8     2,077        2,108        1.5

UPSTREAM

                   

Revenues

     1,963        1,778        1,697        -13.6     3,995        3,474        -13.0

Operating income

     121        58        -56        -146.6     429        1        -99.7

Depreciation

     686        636        643        -6.4     1,316        1,278        -2.9

Capital expenditures

     805        605        632        -21.5     1,653        1,236        -25.2

Adj. EBITDA

     840        717        621        -26.1     1,791        1,338        -25.3

DOWNSTREAM

                   

Revenues

     2,923        2,828        2,909        -0.5     5,414        5,736        5.9

Operating income

     214        279        197        -8.0     159        476        199.6

Depreciation

     90        100        103        14.9     173        204        17.6

Capital expenditures

     169        82        123        -27.0     282        205        -27.3

Adj. EBITDA

     304        380        301        -1.2     332        680        104.7

GAS & ENERGY

                   

Revenues

     480        880        1,004        109.3     854        1,884        120.7

Operating income

     28        36        65        135.9     28        101        264.3

Depreciation

     4        4        4        3.1     10        8        -17.6

Capital expenditures

     27        60        63        136.1     58        124        112.3

Adj. EBITDA

     32        40        70        119.1     38        109        187.0

CORPORATE AND OTHER

                   

Operating income

     43        -84        -15        -134.5     6        -99        -1682.4

Capital expenditures

     22        18        13        -43.1     49        30        -38.3

CONSOLIDATION ADJUSTMENTS

                   

Operating income

     -31        -19        49        -259.5     -135        29        -121.9

Average exchange rate for the period

     14.18        15.62        15.68          14.31        15.65     

NOTE: The calculation of the main financial figures in U.S. dollars is derived from the calculation of the financial results expressed in Argentine pesos using the average exchange rate for each period.

 

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LOGO    Consolidated Results Q2 2017

 

 

 

 

5.6 MAIN PHYSICAL MAGNITUDES

(Unaudited figures)

Major physical magnitudes

 

     2016      2017  
     Unit    Q1      Q2      Q3      Q4      Cum. 2016      Q1      Q2      Cum. 2017  

Production

                          

Crude oil production

   Kbbl      22,656        22,102        22,735        22,051        89,544        21,058        19,867        40,925  

NGL production

   Kbbl      5,124        4,512        4,608        4,987        19,230        4,923        4,680        9,603  

Gas production

   Mm3      4,008        4,074        4,127        4,099        16,308        4,076        4,056        8,132  

Total production

   Kboe      52,986        52,237        53,299        52,816        211,338        51,618        50,055        101,673  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Henry Hub

   USD/Mbtu      2.09        1.95        2.81        2.98        2.46        3.32        3.18        3.25  

Brent

   USD/Bbl      37.88        45.56        45.79        49.19        43.56        53.68        49.67        51.6  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Sales

                          

Sales of petroleum products

                          

Domestic market

                          

Gasoline

   Km3      1,283        1,119        1,178        1,248        4,828        1,297        1,220        2,516  

Diesel

   Km3      1,855        2,038        1,955        1,955        7,803        1,792        1,954        3,746  

Jet fuel and kerosene

   Km3      130        107        135        139        510        134        117        251  

Fuel Oil

   Km3      354        350        376        189        1,269        220        264        484  

LPG

   Km3      153        242        273        171        839        152        241        393  

Others (*)

   Km3      263        270        340        342        1,214        357        377        733  

Total domestic market

   Km3      4,037        4,126        4,257        4,043        16,463        3,952        4,172        8,124  

Export market

                          

Petrochemical naphtha

   Km3      0        0        15        86        100        57        23        81  

Jet fuel and kerosene

   Km3      121        117        130        138        507        135        123        258  

LPG

   Km3      117        17        40        128        302        115        39        154  

Bunker (Diesel and Fuel Oil)

   Km3      149        116        93        87        445        83        74        157  

Others (*)

   Km3      105        24        26        59        214        28        29        58  

Total export market

   Km3      493        275        303        498        1,568        419        289        707  

Total sales of petroleum products

   Km3      4,529        4,401        4,560        4,540        18,031        4,371        4,461        8,831  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Sales of petrochemical products

                          

Domestic market

                          

Fertilizers

   Ktn      24        40        91        114        269        35        39        74  

Methanol

   Ktn      55        82        105        85        327        57        84        141  

Others

   Ktn      133        125        122        144        524        116        130        246  

Total domestic market

   Ktn      212        247        318        343        1,120        208        254        462  

Export market

                          

Methanol

   Ktn      2        1        2        2        7        1        2        3  

Others

   Ktn      25        41        78        51        195        42        51        93  

Total export market

   Ktn      27        42        80        53        202        43        52        95  

Total sales of petrochemical products

   Ktn      239        289        398        396        1,322        251        306        557  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Sales of other products

                          

Grain, flours and oils

                          

Domestic market

   Ktn      9        27        7        11        54        21        37        58  

Export market

   Ktn      169        311        256        151        887        159        291        450  

Total Grain, flours and oils

   Ktn      178        338        263        162        941        180        328        508  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Main products imported

                          

Gasolines and Jet Fuel

   Km3      50        65        52        3        171        3        40        43  

Diesel

   Km3      145        239        306        45        736        152        230        382  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

(*) Principally includes sales of oil and lubricant bases, grease, asphalt and residual carbon, among others.

 

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LOGO    Consolidated Results Q2 2017

 

 

 

 

This document contains statements that YPF believes constitute forward-looking statements within the meaning of the US Private Securities Litigation Reform Act of 1995.

These forward-looking statements may include statements regarding the intent, belief, plans, current expectations or objectives as of the date hereof of YPF and its management, including statements with respect to trends affecting YPF’s future financial condition, financial, operating, reserve replacement and other ratios, results of operations, business strategy, geographic concentration, business concentration, production and marketed volumes and reserves, as well as YPF’s plans, expectations or objectives with respect to future capital expenditures, investments, expansion and other projects, exploration activities, ownership interests, divestments, cost savings and dividend payout policies. These forward-looking statements may also include assumptions regarding future economic and other conditions, such as the future price of petroleum and petroleum products, refining and marketing margins and exchange rates. These statements are not guarantees of future performance, prices, margins, exchange rates or other events and are subject to material risks, uncertainties, changes in circumstances and other factors that may be beyond YPF’s control or may be difficult to predict.

YPF’s actual future financial condition, financial, operating, reserve replacement and other ratios, results of operations, business strategy, geographic concentration, business concentration, production and marketed volumes, reserves, capital expenditures, investments, expansion and other projects, exploration activities, ownership interests, divestments, cost savings and dividend payout policies, as well as actual future economic and other conditions, such as the future price of petroleum and petroleum products, refining margins and exchange rates, could differ materially from those expressed or implied in any such forward-looking statements. Important factors that could cause such differences include, but are not limited to fluctuations in the price of petroleum and petroleum products, supply and demand levels, currency fluctuations, exploration, drilling and production results, changes in reserves estimates, success in partnering with third parties, loss of market share, industry competition, environmental risks, physical risks, the risks of doing business in developing countries, legislative, tax, legal and regulatory developments, economic and financial market conditions in various countries and regions, political risks, wars and acts of terrorism, natural disasters, project delays or advancements and lack of approvals, as well as those factors described in the filings made by YPF and its affiliates before the Comisión Nacional de Valores in Argentina and with the U.S. Securities and Exchange Commission, in particular, those described in “Item 3. Key Information—Risk Factors” and “Item 5. Operating and Financial Review and Prospects” in YPF’s Annual Report on Form 20-F for the fiscal year ended December 31, 2016 filed with the Securities and Exchange Commission. In light of the foregoing, the forward-looking statements included in this document may not occur.

Except as required by law, YPF does not undertake to publicly update or revise these forward-looking statements even if experience or future changes make it clear that the projected performance, conditions or events expressed or implied therein will not be realized.

These materials do not constitute an offer for sale of YPF S.A. bonds, shares or ADRs in the United States or elsewhere.

The information contained herein has been prepared to assist interested parties in making their own evaluations of YPF.

Investor Relations

E-mail: inversoresypf@ypf.com

Website: inversores.ypf.com

Macacha Güemes 515

C1106BKK Buenos Aires (Argentina)

Phone: 54 11 5441 1215

Fax: 54 11 5441 2113

 

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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.

 

    YPF Sociedad Anónima
Date: August 8, 2017     By:  

/s/ Diego Celaá

    Name:   Diego Celaá
    Title:   Market Relations Officer