Report of Foreign Issuer (6-k)

YPF YPF Sociedad Anonima

Latest YPF Messages

Ypf Sociedad Anonima News

Your Recent History

Loading Messages....

Loading Messages....

Boards:

Quotes:

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Boards

News

Market Data

Markets

Discover

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 May, 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 ☒

YPF Sociedád Anonima

TABLE OF CONTENTS

ITEM

1	Translation of Consolidated Results Q1 2017.

LOGO

YPF S.A.

Consolidated Results

Q1 2017


		Consolidated Results Q1 2017

CONTENT


1.	MAIN MILESTONES AND ECONOMIC MAGNITUDES FOR Q1 2017	3

2.	ANALYSIS OF RESULTS FOR Q1 2017	4

3.	ANALYSIS OF OPERATING RESULTS BY BUSINESS SEGMENT FOR Q1 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


		Consolidated Results Q1 2017

Adjusted EBITDA for Q1 2017 was Ps 16.8 billion, 34.7% higher than Q1 2016.


	Q1 2016		Q4 2016		Q1 2017		Var.% Q1 17 / Q1 16

Revenues (Million Ps)		46,934		54,558		57,003		21.5	%

Operating income (Million Ps)		1,618		3,396		4,511		178.8	%

Operating income before Impairment of assets (Million Ps)		1,618		2,151		4,511		178.8	%

Net income (Million Ps)		855		1,775		192		-77.5	%

Net income before impairment of assets (Million Ps)		855		966		192		-77.5	%

Adj. EBITDA (Million Ps)		12,493		13,933		16,826		34.7	%

Earnings per share (Ps per Share)		2.54		4.35		0.06		-97.5	%

Capital Expenditures (Million Ps)		14,741		18,569		11,950		-18.9	%

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 + Impairment of property, plant and equipment.

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

1. MAIN MILESTONES AND ECONOMIC MAGNITUDES FOR Q1 2017

•

Revenues for Q1 2017 were Ps 57.0 billion, 21.5% higher than Q1 2016.

•

Operating income for Q1 2017 was Ps 4.5 billion, 178.8% higher than Q1 2016.

•

Net income for Q1 2017 was a gain of Ps 0.2 billion compared to net income of Ps 0.9 billion recorded for Q1 2016.

•

Hydrocarbon production for Q1 2017 was 573.5 Kboed, 1.5% lower than Q1 2016. Crude oil production for Q1 2017 was 234.0 Kbbld, 6.0% lower than Q1 2016. Natural gas production for Q1 2017 was 45.3 Mm ³ d, 2.8% higher than Q1 2016. NGL production for Q1 2017 was 54.7 Kbbld, 2.9% lower than Q1 2016.

•

Refinery processing levels in the Downstream business segment for Q1 2017 were 91.2%, 1.0% lower than Q1 2016.

•

Capital expenditures in property, plant and equipment for Q1 2017 were Ps 12.0 billion, 18.9% lower than Q1 2016.


		Consolidated Results Q1 2017

2. ANALYSIS OF RESULTS FOR Q1 2017

Revenues for Q1 2017 were Ps 57.0 billion, 21.5% higher than Q1 2016, due primarily to the following factors:

•

Gasoline revenues increased Ps 3.3 billion, 30.5% higher than Q1 2016, due to a 29.1% increase in gasoline mix prices, which was partially offset by a 1.1% decrease in sales volumes, despite a 9.8% increase in sales volumes of Infinia gasoline, a premium gasoline product;

•

Diesel revenues increased Ps 3.1 billion, 20.7% higher than Q1 2016, due to a 25.0% increase in diesel mix prices, which was partially offset by a 3.4% decrease in sales volumes, despite a 15.8% increase in sales volumes of Infinia diesel, a premium diesel product;

•

Natural gas revenues increased Ps 1.3 billion, 13.8% higher than Q1 2016, due to a 6.5% 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, as well as a 0.7% increase in sales volumes;

•

Retail natural gas revenues (residential and small business and companies) increased Ps 0.8 billion, 99.9% higher than Q1 2016, due to YPF’s controlled company Metrogas S.A. (“Metrogas”), which recorded a 6.4% increase in sales volumes and a 69.9% increase in prices for a total revenue increase of Ps 0.7 billion, 80.7% higher than Q1 2016, and the compressed natural gas sold at YPF’s service stations, which recorded a 91.0% increase in prices and stable sales volumes;

•

Asphalt revenues in the Argentine domestic market increased Ps 0.4 billion, 237.3% higher than Q1 2016, due to a 193.9% increase in sales volumes and a 14.8% increase in prices;

•

Fuel oil revenues in the Argentine domestic market decreased Ps 1.4 billion, 49.5% lower than Q1 2016, due to a 37.8% decrease in sales volumes and a 18.8% decrease in prices; and

•

Export revenues increased Ps 1.3 billion, 40.4% higher than Q1 2016, due to a 63.7% increase in export revenues of jet fuel and a 46.2% increase in export revenues of liquefied petroleum gas, all due to increases in prices in Argentine peso terms, as well as a 79.2% increase in exports of petrochemical products in sales volumes and prices, and exports of virgin naphtha, which did not record export volumes in Q1 2016.

Cost of sales for Q1 2017 was Ps 45.8 billion, 14.1% higher than Q1 2016. This includes a 14.4% increase in production costs and a 24.8% increase in purchases. Cash costs, which include costs of production and purchases but exclude depreciation and amortization, increased by 18.8%. This increase was driven by the following factors:


		Consolidated Results Q1 2017

a) Costs of production:

•

Lifting costs increased Ps 1.4 billion, 16.6% higher than Q1 2016, reflecting a 19.3% increase in the unit indicator in Argentine peso terms;

•

Depreciation of property, plant and equipment increased Ps 1.2 billion, 11.7% higher than Q1 2016, due to increased investments in assets and appreciation based on their valuation in U.S. dollars, which is the functional currency of the company;

•

Production costs related to refining increased Ps 0.5 billion, 30.9% higher than Q1 2016, due primarily to increased costs for the consumption of materials, spare parts, electricity and other supplies and fuels, reflecting a 33.7% increase in the unit indicator in Argentine peso terms;

•

Transportation costs increased Ps 0.4 billion, 23.2% higher than Q1 2016, due primarily to increases in rates; and

•

Royalties decreased Ps 0.2 billion, 4.5% lower than Q1 2016. Of this decrease, Ps 0.4 billion was related to a decrease in royalties for crude oil production, due to lower production and lower wellhead values, partially offset by Ps 0.2 billion related to an increase in royalties for natural gas production, due to higher wellhead values of these products and higher production volumes.

b) Purchases:

•

Biofuel purchases increased Ps 1.8 billion, 71.2% higher than Q1 2016, due to higher FAME and ethanol biofuel prices of 39.8% and 43.6%, respectively, a 19.7% increase in volumes purchased of ethanol biofuel and a 22.0% increase in volumes purchased of FAME;

•

Fuel imports increased Ps 0.3 billion, 24.8% higher than Q1 2016, due to a 61.0% increase in prices of diesel and jet fuel and a 12.6% increase in volumes purchased of diesel, which was partially offset by an absence of gasoline imports in Q1 2017;

•

Grain purchases in the agricultural sales segment through the form of barter, which were recorded as purchases for accounting purposes, increased Ps 91.0 million, 18.8% higher than Q1 2016, primarily due to a 18.6% increase in volumes purchased and stable prices; and

•

Crude oil purchases from third parties decreased Ps 0.1 billion, 2.8% lower than Q1 2016, due to an 11.3% decrease in the purchase price in Argentine peso terms, related to the 2017 crude oil pricing structure in the Argentine domestic market agreed to between producers and refiners, partially offset by a 9.5% increase in volumes purchased.

Administration expenses for Q1 2017 were Ps 1.8 billion, 20.5% higher than Q1 2016. The increase was principally due to higher personnel expenses and higher IT costs.


		Consolidated Results Q1 2017

Selling expenses for Q1 2017 were Ps 3.9 billion, 27.7% higher than Q1 2016. This was driven primarily by increases in transport expenses, primarily due to higher rates paid for domestic transport of fuels, and increases in personnel costs, depreciation of property, plant and equipment, advertising and promotional activities and taxes on bank debts and credits.

Exploration expenses for Q1 2017 were Ps 0.6 billion, 30.6% higher than Q1 2016.

Other operating results, net, for Q1 2017 was a loss of Ps 0.4 billion, a 112.0% increase compared to a loss of Ps 0.2 billion for Q1 2016. This was principally due to increases in contingencies for legal proceedings in Q1 2017.

Financial results for Q1 2017 were a loss of Ps 7.2 billion compared to a gain of Ps 4.0 billion in Q1 2016. This change was driven primarily by negative foreign exchange effects on net liabilities in Argentine peso terms of Ps 2.8 billion, generated by the appreciation of the Argentine peso in Q1 2017 compared to Q1 2016, which recorded positive foreign exchange effects on net liabilities in Argentine peso terms of Ps 8.1 billion, generated by the devaluation of the Argentine peso. Higher interest expenses and other financial results of Ps 0.3 billion were also recorded in Q1 2017 due to increased levels of debt in Q1 2017 compared to Q1 2016, which was partially offset by lower interest rates for debt in Argentine peso terms.

Income tax for Q1 2017 was a benefit of Ps 2.8 billion compared to an expense of Ps 4.9 billion in Q1 2016. This benefit was mainly due to lower deferred tax of Ps 7.6 billion and, to a lesser extent, a Ps 0.1 billion decrease in current income tax. The lower 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 pesos to be deducted from tax as they are depreciated, taking into account the company’s functional currency and the appreciation of the peso recorded in Q1 2017 and the devaluation observed during Q1 2016.

Net income for Q1 2017 was a gain of Ps 0.2 billion, a decrease of 77.5% compared to a gain of Ps 0.9 billion in Q1 2016.

Total capital expenditures for property, plant and equipment in Q1 2017 were Ps 12.0 billion, 18.9% lower than Q1 2016.


		Consolidated Results Q1 2017

3. ANALYSIS OF OPERATING RESULTS BY BUSINESS SEGMENT FOR Q1 2017

3.1 UPSTREAM


	Q1 2016		Q4 2016		Q1 2017		Var.% Q1 17 / Q1 16

Operating income (Million Ps)		4,441		2,135		899		-79.8	%

Operating income before Impairment of assets (Million Ps)		4,441		890		899		-79.8	%

Revenues (Million Ps)		29,330		28,878		27,777		-5.3	%

Crude oil production (Kbbld)		249.0		239.7		234.0		-6.0	%

NGL production (Kbbld)		56.3		54.2		54.7		-2.9	%

Gas production (Mm3d)		44.0		44.6		45.3		2.8	%

Total production (Kboed)		582.3		574.1		573.5		-1.5	%

Exploration costs (Million Ps)		454		1,651		593		30.6	%

*Capital Expenditures ()** (Million Ps)		12,255		13,824		9,448		-22.9	%

Depreciation (Million Ps)		9,096		8,330		9,935		9.2	%

Realization Prices

Crude oil prices in domestic market Period average (USD/bbl)		61.9		53.3		53.0		-14.4	%

Average gas price (USD/Mmbtu)		4.71		4.79		4.96		5.3	%

Operating income for the Upstream business segment for Q1 2017 was Ps 0.9 billion, 79.8% lower than Q1 2016.

Revenues were Ps 27.7 billion for Q1 2017, 5.3% lower than Q1 2016, due primarily to the following factors:

•

Natural gas revenues from sales to third parties increased Ps 1.3 billion, 13.8% higher than Q1 2016, due to a 6.5% increase in prices in Argentine peso terms, which was partially offset by a 0.7% increase in sales volumes.

•

Crude oil revenues decreased Ps 2.7 billion, 13.7% lower than Q1 2016, due to a 5.2% decrease in Argentine peso terms of the transfer price between the business segments, while volumes transferred between business segments and to third parties decreased 6.8% and 64.0%, respectively.


		Consolidated Results Q1 2017

•

The price obtained in U.S. dollars for crude oil in the Argentine domestic market for Q1 2017 decreased 14.4% to US$53.00/barrel, due to the pricing structure agreed to between producers and refiners discussed above. The price obtained in U.S. dollars for natural gas was US$4.96/Mmbtu, 5.3% higher than Q1 2016.

With respect to development activity, 96 wells were put in production in Q1 2017, including the shale and tight wells mentioned below.

Hydrocarbon production in shale areas net to YPF for Q1 2017 was 34.3 Kboed, including 16.0 Kbbld of crude oil, 5.9 Kbbld of NGL and 2.0 Mm ³ d of natural gas. During Q1 2017, 14 wells were put in production targeting the Vaca Muerta formation, for a total of 555 wells, including 8 active drilling rigs and 9 workovers.

With respect to tight gas development, net production in Q1 2017 reached a total of 13.1 Mm ³ d, of which 86.6% came from areas operated by YPF. During Q1 2017, 13 new wells were put into production, 9 in Aguada Toledo-Sierra Barrosa, 2 in Rincon del Mangrullo and 2 in Estación Fernandez Oro.

Operating costs for Q1 2017 were Ps 26.3 billion, 8.5% higher than Q1 2016, mainly due to the following:

•

Lifting costs increased Ps 1.4 billion, a 16.6% increase, reflecting a 19.3% increase in the unit indicator in Argentine peso terms;

•

Depreciation of property, plant and equipment increased Ps 0.8 billion, a 9.2% increase; and

•

Royalties decreased Ps 0.2 billion, a 4.5% decrease, related to a decrease in royalties for crude oil production of Ps 0.4 billion, due to lower production and lower wellhead values, partially offset by an increase in royalties for natural gas production of Ps 0.2 billion due to higher wellhead values of these products and higher production volumes.

Exploration expenses for Q1 2017 were Ps 0.6 billion, an increase of 30.6% compared to Ps 0.5 billion for Q1 2016. This change was due principally to a Ps 0.2 billion increase in negative results from unproductive exploratory wells in Q1 2017 compared to Q1 2016. Expenses for the development of geological and geophysical studies decreased Ps 34 million between Q1 2017 and Q1 2016. Nevertheless, total exploration investments increased Ps 0.5 billion, 163.5% higher than Q1 2016.

Unit cash costs in U.S. dollars increased 5.3% to US$20.60/boe for Q1 2017 from US$19.50/boe for Q1 2016, including taxes of US$5.60/boe and US$6.10/boe, respectively. In turn, the average lifting cost for YPF was US$12.20/boe, 10.1% higher than US$11.10/boe for Q1 2016.


		Consolidated Results Q1 2017

CAPEX

Capital expenditures for the Upstream business segment for Q1 2017 were Ps 9.4 billion, 22.9% lower than Q1 2016.

Of these capital expenditures, 62% were invested in drilling and workover activities, 24% in facilities, and the remaining 14% in exploration and other activities in the Upstream business segment.

In the Neuquina basin area, activities for Q1 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), EFO and Chachahuen blocks. Additionally, activity began in the Río Neuquén and Piloto La Ribera blocks. Development activities continued at the Cuyana basin, mainly in the Barrancas, La Ventana, Mesa Verde and Ugarteche blocks. In the Golfo San Jorge basin, most activity was concentrated in Barranca Baya, Seco León, Cañadón Yatel and Los Perales, in the province of Santa Cruz and Manantiales Behr in the province of Chubut.

Exploration activities for Q1 2017 covered the Neuquina, Golfo San Jorge and Austral basins. In the Neuquina basin, exploratory activity was in the Cerro Arena, Señal Picada - Punta Barda, Loma La Lata, Estación Fernandez Oro, Paso de las Bardas and Chachahuen blocks. In the Golfo San Jorge basin, activity focused on the evaluation of deep targets in Los Perales and Cañadón de la Escondida blocks. In the Austral basin, exploratory activity was performed in the Fracción “E” and Lago Fuego blocks.

During Q1 2017, 11 (five crude oil and six gas) exploratory wells were completed.


		Consolidated Results Q1 2017

3.2 DOWNSTREAM


	Q1 2016			Q4 2016			Q1 2017			Var.% Q1 17 / Q1 16

Operating income (Million Ps)		-798			520			4,364			646.9	%

Revenues (Million Ps)		35,960			43,064			44,179			22.9	%

Sales of refined products in domestic market (Km3)		4,037			4,043			3,952			-2.1	%

Exportation of refined products (Km3)		493			498			419			-14.9	%

*Sales of petrochemical products in domestic market ()** (Ktn)		188			229			173			-8.0	%

Exportation of petrochemical products (Ktn)		27			53			44			63.0	%

Crude oil processed (Kboed)		294			299			291			-1.0	%

Refinery utilization (%)		92	%		94	%		91	%		-1.0	%

Capital Expenditures (Million Ps)		1,634			3,323			1,279			-21.7	%

Depreciation (Million Ps)		1,202			1,712			1,569			30.5	%

Average domestic market gasoline price ()** (USD/m3)		564			627			667			18.4	%

Average domestic market diesel price ()** (USD/m3)		559			602			644			15.1	%

(*)	Fertilizer sales not included

(**)	Includes gross income and net of deductions, commissions and other taxes

Operating profit for the Downstream business segment for Q1 2017 was Ps 4.4 billion compared to the operating loss of Ps 0.8 billion in Q1 2016.

Revenues were Ps 44.2 billion in Q1 2017, 22.9% higher than Q1 2016, due primarily to the following factors:

•

Gasoline revenues increased Ps 3.3 billion, 30.5% higher than Q1 2016, due to a 29.1% increase in gasoline mix prices and a 1.1% increase in sales volumes, including a 9.8% increase in sales volumes of Infinia gasoline, a premium gasoline product;

•

Asphalt revenues in the Argentine domestic market increased Ps 0.4 billion, 237.3% higher than Q1 2016, due to a 193.9% increase in sales volumes and a 14.8% increase in prices;


		Consolidated Results Q1 2017

•

Petrochemical product revenues in the domestic Argentine market increased Ps 0.3 billion, 34.8% higher than Q1 2016, due to a 46.8% increase in prices in Argentine peso terms, which was partially offset by an 8.2% decrease in sales volumes;

•

Fuel oil revenues in the Argentine domestic market decreased Ps 1.4 billion, 49.5% lower than Q1 2016, due to a 37.8% decrease in sales volumes, which was partially offset by an 18.8% increase in prices; and

•

Export revenues increased Ps 1.3 billion, 40.8% higher than Q1 2016, due to a 63.7% increase in export revenues of jet fuel and a 46.2% increase in export revenues of liquefied petroleum gas, all due to increases in prices in Argentine peso terms, as well as a 79.2% increase in exports of petrochemical products in sales volumes and prices, and exports of virgin naphtha, which did not record export volumes in Q1 2016.

Cost of sales and operating expenses for Q1 2017 increased Ps 3.1 billion, or 8.3% compared to Q1 2016, due primarily to the following factors:

•

Crude oil purchases decreased Ps 2.3 billion, 10.3% lower than Q1 2016, due to a decrease in prices in Argentine peso terms of crude oil purchased of 6.2%, related to the 2017 crude oil pricing structure in the Argentine domestic market agreed to between producers and refiners, and lower volumes purchased. The volume of crude oil transferred from the Upstream business segment decreased 6.8%, and the volume purchased from third parties increased 9.5%;

•

Grain purchases in the agricultural sales segment through the form of barter, which were recorded as purchases for accounting purposes, increased Ps 91 million, 18.8% higher than Q1 2016;

•

Production costs related to refining increased Ps 0.5 billion, 30.9% higher than Q1 2016, due to increased expenses for materials, parts, electricity, other supplies and fuel. As a result, taking into account the decrease in volumes processed, unit refining costs in Q1 2017 were 33.7% higher than Q1 2016. Transportation costs related to production (shipping, oil pipelines, and multiproduct pipelines) increased Ps 0.3 billion, 27.1% higher than Q1 2016;

•

Property, plant and equipment depreciation increased Ps 0.4 billion, 36.5% higher than Q1 2016, resulting from an increase in the value of assets subject to depreciation compared to Q1 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; and


		Consolidated Results Q1 2017

•

Selling expenses increased Ps 0.8 billion, 27.4% higher than Q1 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.

The volume of crude oil processed in Q1 2017 was 291 Kbbld, 1.0% lower than Q1 2016. These lower processing levels resulted in a 3.1% decrease in diesel production, a 5.6% decrease in gasoline production and a 31.2% decrease in fuel oil production. In addition, the company increased its production of jet fuel, petrochemical products and petroleum coal compared to Q1 2016.

CAPEX

Capital expenditures for the Downstream business segment for Q1 2017 were Ps 1.3 billion, a 21.7% decrease compared to Q1 2016.

Improvements to the Topping III unit in Mendoza 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.


		Consolidated Results Q1 2017

3.3 GAS AND ENERGY


	Q1 2016		Q4 2016		Q1 2017		Var.% Q1 17 / Q1 16

Operating income (Million Ps)		4		825		558		13850.0	%

Revenues (Million Ps)		5,456		9,104		13,745		151.9	%

Capital Expenditures (Million Ps)		457		877		943		106.3	%

Depreciation (Million Ps)		88		73		65		-26.1	%

In its 2016 annual Financial Statements, the YPF Group 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.

Operating profits for this business segment in Q1 2017 were Ps 0.6 billion, compared to Ps 4 million in Q1 2016. This increase was due primarily to improved results of regasification services for LNG in Bahía Blanca and Escobar in peso terms and to the incremental tariff restructuring by YPF’s controlled company Metrogas, which recorded an operating profit of Ps 90 million in Q1 2017, compared to a Ps 218 million operating loss in Q1 2016. We also recorded improved operating results of Ps 53 million, 46.4% higher than Q1 2016, from our controlled company YPF Energía Eléctrica S.A.

CAPEX

Capital expenditures for the Gas and Energy business segment for Q1 2017 were Ps 0.9 billion, 106.3% higher than Q1 2016.

In Q1 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 Neuquen 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 collaboration 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 at the end of 2017 through the middle of 2018.


		Consolidated Results Q1 2017

3.4 CENTRAL ADMINISTRATION AND OTHER

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

Corporate operating income for Q1 2017 was a loss of Ps 1.0 billion, compared to a loss of Ps 0.5 billion in Q1 2016. This change was driven primarily by higher personnel expenses, higher IT costs and increases in contingencies for legal proceedings.

Consolidation adjustments to eliminate results among business segments not transferred to third parties were negative Ps 0.3 billion for Q1 2017. These adjustments were also negative Ps 1.5 billion in Q1 2016. In both periods, there was an increase in the difference between transfer prices between businesses and the replacement cost of the company’s inventory.

3.5 RELATED COMPANIES

Results from related companies for Q1 2017 were a gain of Ps 22 million, compared to a gain of Ps 97 million for Q1 2016. This decrease was due primarily to lower results obtained by Profertil, Central Dock Sud and Refinor, which were not completely offset by improved results from Compañía Mega.

4. LIQUIDITY AND SOURCES OF CAPITAL

In Q1 2017, net cash flows provided by operating activities were Ps 24.7 billion, 127.7% higher than Q1 2016. This increase of Ps 13.8 billion was due to a Ps 4.3 billion increase in adjusted EBITDA, a reduction in working capital in Q1 2017 and a Ps 0.5 billion lower income tax payment. Among the principal reasons for the decrease in working capital was the collection of accounts receivable owed to the company, including among others, accounts receivables received from the stimulus program for the surplus injection of natural gas during Q1 2017 compared to Q1 2016 when no collections were received from this program.

Net cash flows used in investing activities were Ps 14.8 billion for Q1 2017, 12.5% lower than Q1 2016. Investments in fixed and intangible assets were Ps 14.6 billion in Q1 2017, 15.8% lower than Q1 2016. In Q1 2016, Ps 0.4 billion in insurance payments were charged for material damage, in connection with damage to our crude treatment plant in Cerro Divisadero (Mendoza) in March 2014.

As a result of its financing activities during the Q1 2017, the company had a net use of funds of Ps 9.0 billion compared to Ps 16.0 billion of funds provided in Q1 2016. This difference was due to lower debt issuances and refinancing of maturing debt of Ps 23.0 billion and higher interest payments of Ps 1.9 billion during Q1 2017.

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 26.3 billion as of March 31, 2017.

At the end of Q1 2017, total debt in U.S. dollars was US$9.5 billion, net debt was US$7.8 billion(1) and the net debt/adjusted EBITDA LTM ratio was 1.87x(2).


		Consolidated Results Q1 2017

The average interest rate for debt denominated in Argentine pesos at the end of Q1 2017 was 23.95%, while the average interest rate for debt denominated in U.S. dollars was 7.81%.

(1)	Net Debt: Includes investments in financial assets (government securities) of US$968 million at market value

(2)	Net Debt: US$7,824 million/adjusted EBITDA LTM: US$4,173 million = 1.87x


		Consolidated Results Q1 2017

5. TABLES AND NOTES

Q1 2017 Results


		Consolidated Results Q1 2017

5.1 CONSOLIDATED STATEMENT OF INCOME

YPF SOCIEDAD ANONIMA AND CONTROLLED COMPANIES

(Unaudited, figures expressed in millions of pesos)


	Q1 2016			Sep-Dec 2016			Q1 2017			Var.% Q1 17 / Q1 16
Revenues		46,934			54,558			57,003			21.5	%
Costs		(40,131	)		(46,326	)		(45,798	)		14.1	%

Gross profit		6,803			8,232			11,205			64.7	%

Selling expenses		(3,045	)		(4,534	)		(3,887	)		27.7	%
Administration expenses		(1,486	)		(1,868	)		(1,790	)		20.5	%
Exploration expenses		(454	)		(1,651	)		(593	)		30.6	%
Impairment of property, plant and equipment and intangible assets		—			1,245						0.0	%
Other operating results, net		(200	)		1,972			(424	)		112.0	%

Operating income (loss)		1,618			3,396			4,511			178.8	%

Results on investments in companies and joint ventures		97			215			22			(77.3	%)
Finance Income		9,121			4,167			1,612			(82.3	%)
Finance Cost		(5,480	)		(6,710	)		(8,848	)		61.5	%
Other financial results		377			330			75			(80.1	%)

Financial results, net		4,018			(2,213	)		(7,161	)		-278.2	%

Net (loss) profit before income tax		5,733			1,398			(2,628	)		-145.8	%

Income tax		(4,878	)		377			2,820			(157.8	%)

Net (loss) profit for the period		855			1,775			192			(77.5	%)

Net (loss) profits for noncontrolling interest		(141	)		54			167

Net (loss) profit for shareholders of the parent company		996			1,721			25			(97.5	%)

Earnings per share, basic and diluted		2.54			4.35			0.06			(97.5	%)

Other comprehensive Income		15,407			4,850			(3,643	)		(123.6	%)

Total comprehensive income for the period		16,262			6,625			(3,451	)		(121.2	%)



*Adj. EBITDA ()**		12,493			13,933			16,826			34.7	%

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 + Impairment of property, plant and equipment.


		Consolidated Results Q1 2017

5.2 CONSOLIDATED BALANCE SHEET

YPF SOCIEDAD ANONIMA AND CONTROLLED COMPANIES

(Q1 2017 figures unaudited, figures expressed in millions of pesos)


	12/31/2016			03/31/2017
Noncurrent Assets
Intangible assets		8,114			8,045
Properties, plant and equipment		308,014			297,613
Investments in companies and joint ventures		5,488			5,591
Deferred tax assets, net		564			362
Other receivables		3,909			1,887
Trade receivables		87			128
Investment in financial assets		7,737			7,315

Total Non-current assets		333,913			320,941

Current Assets
Inventories		21,820			21,032
Other receivables		13,456			10,161
Trade receivables		33,645			31,919
Investment in financial assets		7,548			7,532
Cash and equivalents		10,757			11,424

Total current assets		87,226			82,068


Total assets		421,139			403,009


Shareholders’ equity
Shareholders’ contributions		10,403			10,429
Reserves, other comprehensive income and retained earnings		108,352			104,734
Noncontrolling interest		(94	)		73

Total Shareholders’ equity		118,661			115,236


Noncurrent Liabilities
Provisions		47,358			50,317
Deferred tax liabilities		42,465			39,360
Other taxes payable		98			262
Loans		127,568			123,532
Other liabilities		336			319
Accounts payable		2,187			1,747

Total Noncurrent Liabilities		220,012			215,537


Current Liabilities
Provisions		1,994			1,772
Income tax payable		176			213
Other taxes payable		4,440			6,391
Salaries and social security		3,094			2,440
Loans		26,777			22,756
Other liabilities		4,390			466
Accounts payable		41,595			38,198

Total Current Liabilities		82,466			72,236


Total Liabilities		302,478			287,773


Total Liabilities and Shareholders’ Equity		421,139			403,009

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


		Consolidated Results Q1 2017

5.3 CONSOLIDATED STATEMENT OF CASH FLOW

YPF SOCIEDAD ANONIMA AND CONTROLLED COMPANIES

(Unaudited, figures expressed in millions of pesos)


	Q1 2016			Q4 2016			Q1 2017
Operating activities
Net income (loss)		855			1,775			192
Income (loss) from investments in companies and joint ventures		(97	)		(215	)		(22	)
Depreciation of property, plant and equipment		10,534			10,341			11,764
Amortization of intangible assets		153			206			181
Consumpsion of materials and retirement of property, plant and equipment and intagible assets, net of provisions		1,183			2,190			869
Income tax charge		4,878			(377	)		(2,820	)
Net increase in provisions		1,092			2,248			1,671
Impairment of property, plant and equipment and intangible assets		—			(1,245	)		—
Interest, exchange differences and other		(4,666	)		1,105			6,369
Stock compensation plan		40			45			26
Changes in assets and liabilities:
Trade receivables		(7,966	)		(686	)		1,894
Other receivables		4,518			(1,728	)		3,175
Inventories		1,089			1,667			111
Accounts payable		778			1,477			1,145
Other Taxes payable		(760	)		(1,634	)		2,119
Salaries and Social Securities		(419	)		494			(651	)
Other liabilities		100			190			(950	)
Decrease in provisions included in liabilities for payments / utilization		(354	)		(450	)		(273	)
Dividends received		—			(1	)		95
Insurance charge for loss of profit		607			—			—
Income tax payments		(740	)		(379	)		(245	)

Cash flow from operating activities		10,825			15,023			24,650

Investing activities
Acquisitions of property, plant and equipment and Intangible assets		(17,303	)		(15,097	)		(14,574	)
Contributions and acquisitions of interests in companies and joint ventures		—			(60	)		(272	)
Payments for acquisition of financial assets investments		(13	)		(236	)		(3	)
Interest received from financial assets		—			483			8
Insurance charge for material damages		355			—			—

Cash flows from investing activities		(16,961	)		(14,910	)		(14,841	)

Financing activities
Payment of loans		(17,179	)		(23,844	)		(8,393	)
Payment of interests		(3,515	)		(4,709	)		(5,369	)
Proceeds from loans		36,603			21,552			4,769
Acquisition of own shares		—			—			—
Non controling interest contribution		50			—			—

Cash flows from financing activities		15,959			(7,001	)		(8,993	)


Effect of changes in exchange rates on cash and equivalents		953			11			(149	)

Increase (decrease) in Cash and Equivalents		10,776			(6,877	)		667

Cash and equivalents at the beginning of the period		15,387			17,634			10,757
Cash and equivalents at the end of the period		26,163			10,757			11,424

Increase (decrease) in Cash and Equivalents		10,776			(6,877	)		667

COMPONENTS OF CASH AND EQUIVALENT AT THE END OF THE PERIOD
Cash		22,927			7,922			5,620
Other Financial Assets		3,236			2,835			5,804

TOTAL CASH AND EQUIVALENTS AT THE END OF THE PERIOD		26,163			10,757			11,424

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


		Consolidated Results Q1 2017

5.4 CONSOLIDATED BUSINESS SEGMENT INFORMATION

(Unaudited, figures expressed in millions of pesos)


Q1 2017	Upstream		Gas & Power		Downstream			Corporate and Other			Consolidation Adjustments			Total
Revenues		155		12,755		43,978			714			(599	)		57,003
Revenues from intersegment sales		27,622		990		202			1,566			(30,380	)		—

Revenues		27,777		13,745		44,180			2,280			(30,979	)		57,003


Operating Income (loss)		899		558		4,364			(1,006	)		(304	)		4,511
Investments in companies		—		56		(34	)		—			—			22
Depreciation of fixed assets		9,935		65		1,569			195			—			11,764
Impairment of property, plant and equipment and intangible assets		—		—		—			—			—			—
Acquisitions of fixed assets		9,448		943		1,279			280			—			11,950
Assets		210,579		36,553		123,151			34,090			(1,364	)		403,009

Q1 2016	Upstream		Gas & Power		Downstream			Corporate and Other			Consolidation Adjustments			Total
Revenues		5,897		4,750		35,750			537			—			46,934
Revenues from intersegment sales		23,433		706		210			1,661			(26,010	)		—

Revenues		29,330		5,456		35,960			2,198			(26,010	)		46,934


Operating Income (loss)		4,441		4		(798	)		(526	)		(1,503	)		1,618
Investments in companies		—		66		31			—			—			97
Depreciation of fixed assets		9,096		88		1,202			148			—			10,534
Impairment of property, plant and equipment and intangible assets		—		—		—			—			—			—
Acquisitions of fixed assets		12,255		457		1,634			395			—			14,741
Assets as of December 31,2016		236,173		25,866		125,536			34,739			(1,175	)		421,139


		Consolidated Results Q1 2017

5.5 MAIN FINANCIAL MAGNITUDES IN U.S. DOLLARS

(Unaudited figures)


Million USD	2016 Q1		2016 Q4		2017 Q1		Var Q1 17/ Q1 16
INCOME STATMENT
Revenues		3,251		3,542		3,647		12.2	%
Costs of sales		-2,780		-3,008		-2,930		5.4	%

Gross profit		471		534		717		*52.1*	%
Other operating expenses, net		-359		-314		-428		19.2	%

Operating income		112		220		289		*157.5*	%
Depreciation and impairment of property, plant & equipment and intangible assets		730		591		753		3.2	%
Amortization of intangible assets		11		13		12		9.3	%
Unproductive exploratory drillings		13		80		24		81.8	%

Adj. EBITDA		865		905		1,077		*24.4*	%

UPSTREAM
Revenues		2,032		1,875		1,777		-12.5	%
Operating income		308		139		58		-81.3	%
Depreciation		630		541		636		0.9	%
Capital expenditures		849		897		604		-28.8	%
Adj. EBITDA		951		679		717		-24.6	%

DOWNSTREAM
Revenues		2,491		2,796		2,827		13.5	%
Operating income		-55		34		279		-605.1	%
Depreciation		83		111		100		20.6	%
Capital expenditures		113		216		82		-27.7	%
Adj. EBITDA		28		145		380		1256.5	%

GAS & ENERGY
Revenues		378		591		879		132.7	%
Operating income		0		54		36		12785.3	%
Depreciation		6		5		4		-31.8	%
Capital expenditures		32		57		60		90.6	%
Adj. EBITDA		6		58		40		525.5	%

CORPORATE AND OTHER
Operating income		-141		-65		-84		-40.4	%
Capital expenditures		27		35		18		-34.5	%

CONSOLIDATION ADJUSTMENTS
Operating income		-104		59		-19		-81.3	%
*Average exchange rate for the period*		*14.44*		*15.40*		*15.63*

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.


		Consolidated Results Q1 2017

5.6 MAIN PHYSICAL MAGNITUDES

(Unaudited figures)


	2016												2017
	Unit		Q1		Q2		Q3		Q4		Cum. 2016		Q1
Production
Crude oil production		Kbbl		22,656		22,102		22,735		22,051		89,544		21,058
NGL production		Kbbl		5,124		4,512		4,608		4,987		19,230		4,923
Gas production		Mm3		4,008		4,074		4,127		4,099		16,308		4,076
Total production		Kboe		52,986		52,237		53,299		52,816		211,338		51,618


Henry Hub		USD/Mbtu		2.09		1.95		2.81		2.98		2.46		3.32
Brent		USD/Bbl		37.88		45.56		45.79		49.19		43.56		53.68
Sales
Sales of petroleum products
Domestic market
Gasoline		Km3		1,283		1,119		1,178		1,248		4,828		1,297
Diesel		Km3		1,855		2,038		1,955		1,955		7,803		1,792
Jet fuel and kerosene		Km3		130		107		135		139		510		134
Fuel Oil		Km3		354		350		376		189		1,269		220
LPG		Km3		153		242		273		171		839		152
Others (*)		Km3		263		270		340		342		1,214		357
Total domestic market		Km3		4,037		4,126		4,257		4,043		16,463		3,952
Export market
Petrochemical naphtha		Km3		0		0		15		86		100		57
Jet fuel and kerosene		Km3		121		117		130		138		507		135
LPG		Km3		117		17		40		128		302		115
Bunker (Diesel and Fuel Oil)		Km3		149		116		93		87		445		83
Others (*)		Km3		105		24		26		59		214		28
Total export market		Km3		493		275		303		498		1,568		419
Total sales of petroleum products		Km3		4,529		4,401		4,560		4,540		18,031		4,371

Sales of petrochemical products
Domestic market
Fertilizers		Ktn		24		40		91		114		269		35
Methanol		Ktn		55		82		105		85		327		55
Others		Ktn		133		125		122		144		524		118
Total domestic market		Ktn		212		247		318		343		1,120		208
Export market
Methanol		Ktn		2		1		2		2		7		2
Others		Ktn		25		41		78		51		195		42
Total export market		Ktn		27		42		80		53		202		44
Total sales of petrochemical products		Ktn		239		289		398		396		1,322		252

Sales of other products
Grain, flours and oils
Domestic market		Ktn		9		27		7		11		54		21
Export market		Ktn		169		311		256		151		887		159
Total Grain, flours and oils		Ktn		178		338		263		162		941		180

Main products imported
Gasolines and Jet Fuel		Km3		50		65		52		3		171		50
Diesel		Km3		145		239		306		45		736		145

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


		Consolidated Results Q1 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

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 Anonima (NYSE:YPF)
Historical Stock Chart
From Mar 2024 to Apr 2024

Click Here for more YPF Sociedad Anonima Charts.

YPF Sociedad Anonima (NYSE:YPF)
Historical Stock Chart
From Apr 2023 to Apr 2024

YPF Sociedad Anónima

Date: May 9, 2017

/s/ Diego Celaá

Diego Celaá

Market Relations Officer