YPF YPF Sociedad Anonima

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 November, 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  ☒

 

 

 

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Table of Contents

YPF Sociedad Anónima

TABLE OF CONTENTS

 

ITEM

 

1	Translation of Consolidated Results for Q3 2017.

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Table of Contents

 

 

 

 

YPF S.A.

Consolidated Results

Q3 2017

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Table of Contents

		Consolidated Results Q3 2017

 

 

 

 

CONTENT

 

1.		MAIN MILESTONES AND ECONOMIC MAGNITUDES FOR Q3 2017			3
2.		ANALYSIS OF RESULTS FOR Q3 2017			4
3.		ANALYSIS OF OPERATING RESULTS BY BUSINESS SEGMENT FOR Q3 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			17
		5.2 CONSOLIDATED BALANCE SHEET			18
		5.3 CONSOLIDATED STATEMENT OF CASH FLOW			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

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Table of Contents

		Consolidated Results Q3 2017

 

 

 

 

Adjusted EBITDA for Q3 2017 was Ps 17.0 billion, 16.7% higher than Q3 2016.

 

Q3 2016				Q2 2017				Q3 2017				Var.% Q3 17 / Q3 16				GENERAL		Jan-Sep 2016				Jan-Sep 2017				Var.% 2017 / 2016
	55,849				60,162				66,034				18.2	%		Revenues (Million Ps)			155,542				183,199				17.8	%
	(34,578)				3,466				3,050				N/A			Operating income (Million Ps)			(27,642	)			11,027				N/A
	1,610				3,466				3,050				89.4	%		Operating income before Impairment of assets (Million Ps)			8,546				11,027				29.0	%
	(30,256)				272				246				N/A			Net income (Million Ps)			(30,154	)			710				N/A
	(6,734)				272				246				N/A			Net income before impairment of assets (Million Ps)			-6,632				710				N/A
	14,609				16,177				17,043				16.7	%		Adj. EBITDA (Million Ps)			44,283				50,046				13.0	%
	(77.14)				0.54				0.24				N/A			Earnings per share (Ps per Share)			(76.49	)			0.84				N/A
	14,997				13,029				15,903				6.0	%		Capital Expenditures (Million Ps)			44,236				40,882				-7.6	%

Adjusted EBITDA = Operating income + Depreciation and impairment of property, plant and equipment and intangible assets + Amortization of intangible assets + unproductive exploratory drillings.

(Amounts are expressed in billions of Argentine pesos = Ps billion except where indicated)

1. MAIN MILESTONES AND ECONOMIC MAGNITUDES FOR Q3 2017

 

•

Revenues for Q3 2017 were Ps 66.0 billion, 18.2% higher than Q3 2016.

 

•

Operating income for Q3 2017 was a gain of Ps 3.1 billion, 89.4% higher than the operating income in Q3 2016 before asset impairment charges. Considering the asset impairment charges, Q3 2016 operating income was negative, at Ps 34.6 billion.

 

•

Net income for Q3 2017 was Ps 0.2 billion, compared to a net loss of Ps 6.7 billion recorded in Q3 2016, before the impairment charge. Considering the asset impairment charges, net income in Q3 2016 was negative, at Ps 30.3 billion.

 

•

Hydrocarbon production for Q3 2017 was 553.2 Kboed, 4.5% lower than Q3 2016. Crude oil production for Q3 2017 fell 8.1%, totaling 227.2 Kbbld, while natural gas production for Q3 2017 was 44.1 Mm3d, 1.7% lower than Q3 2016. NGL production fell 3.0%, reaching 48.6 Kbbld.

 

•

Refinery processing levels in the Downstream business segment for Q3 2017 were 92.0%, 0.6% higher than Q3 2016.

 

•

Capital expenditures in property, plant and equipment for Q3 2017 were Ps 15.9 billion, 6.0% higher than the Ps 15.0 billion invested during Q3 2016.

 

•

Operating cash flow for Q3 2017 was Ps 13.6 billion, 19.0% lower than Q3 2016.

 

3

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		Consolidated Results Q3 2017

 

 

 

 

2. ANALYSIS OF RESULTS FOR Q3 2017

Revenues for Q3 2017 were Ps 66.0 billion, 18.2% higher than the Ps 55.8 billion in Q3 2016, due primarily to the following factors:

 

•

Gasoline revenues increased Ps 3.1 billion, 26.0% higher than Q3 2016, due to a 15.6% increase in the gasoline mix prices and an increase of 9.0% in sales volumes, including a 25.4% increase in sales volumes of Infinia gasoline, a premium gasoline product;

 

•

Diesel revenues increased Ps 2.3 billion, 12.3% higher than Q3 2016, due to a 10.9% increase in average diesel mix prices and to higher sales volumes of 1.3%. There was a 39.5% increase in sales volumes of Infinia Diesel, a premium diesel product;

 

•

Natural gas production sales increased Ps 2.0 billion, 21.2% higher than Q3 2016, due to an 18.0% increase in prices in Argentine peso terms, as a result of the effect of the stimulus program for the surplus injection of natural gas on incremental production (“Gas Plan”), as well as a 2.7% increase in sales volumes;

 

•

Retail natural gas revenues (residential and small business and companies) increased Ps 1.0 billion, 42.3% higher than Q3 2016, due to YPF’s controlled company Metrogas S.A., which recorded 12.0% lower sales and a higher average price of 54.3%, for a total increase in sales of Ps 1.0 billion, or 35.8% higher than Q3 2016;

 

•

Fuel oil revenues in the Argentine domestic market decreased Ps 2.0 billion, 70.3% lower than Q3 2016, due to a 67.9% decrease in sales volumes to power generation plants and a 7.5% decrease in prices;

 

•

Remaining domestic sales increased by Ps 2.3 billion, 35.8% higher than Q3 2016, with emphasis on asphalt, with a Ps 0.5 billion increase, 134.0% higher than Q3 2016, and increase of 35.5% in lubricant sales, 33.3% in petrochemical products, 28.4% in LPG and 28.7% in Jet Fuel, all mainly due to higher prices for these products;

 

•

Export revenues increased Ps 1.5 billion, 34.1% higher than Q3 2016, due primarily to a 48.2% increase in export revenues of Jet Fuel as a result of increases in prices in Argentine peso terms of 23.7% and an increase of 19.8% in volumes sold, as well as increased export revenue of 139.8% for LPG and 407.5% for virgin naphtha on higher volumes and prices. Exports of flour and soybean oil increased Ps 0.4 billion, 28.8% higher than Q3 2016, due to an increase in volumes, without significant variations in price.

Cost of sales for Q3 2017 was Ps 56.1 billion, 16.8% higher than Q3 2016. This includes an 11.7% increase in production costs and a 28.5% increase in purchases. Cash costs, which include costs of production and purchases but exclude depreciation and amortization, increased by 19.4%. This increase was driven by the following factors:

a) Costs of production

 

•

Lifting costs increased Ps 1.4 billion, 14.9%, higher than Q3 2016, reflecting a 20.5% increase in the unit indicator in Argentine peso terms weighted by the decreased production during the period;

 

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		Consolidated Results Q3 2017

 

 

 

 

•

Depreciation of property, plant and equipment increased Ps 1.0 billion, 8.4% higher than Q3 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, offset by the net reduction of these assets as the result of the asset impairment charges recorded in Q3 2016;

 

•

Transportation costs increased Ps 0.6 billion, 33.3%, higher than Q3 2016, due primarily to increases in Argentine domestic transportation rates and higher volumes transported;

 

•

Production costs related to refining increased Ps 0.4 billion, 19.3% higher than Q3 2016, due primarily to increased costs for the consumption of materials, spare parts, electricity and other supplies and fuels, reflecting an 18.6% increase in the unit indicator in Argentine peso terms; and

 

•

Royalties increased Ps 145 million, 3.3% higher than Q3 2016, the result of a decrease of Ps 248 million in royalties on crude oil production due to lower production, and an increase of 393 million in royalties on natural gas production caused by higher wellhead values for this product.

b) Purchases

 

•

Crude oil purchases from third parties increased Ps 2.5 billion, 70.9% higher than Q3 2016, due to an 84.7% increase in volumes purchased driven by lower production during the period, partially offset by a 7.5% 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, 31.1% higher than Q3 2016, due to an increase of 15.1% in biofuel prices and a 22.8% increase in FAME prices, and a 15.4% increase in volumes purchased of ethanol biofuel and a 5.5% increase in volumes purchased of FAME;

 

•

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, 39.9% higher than Q3 2016, due primarily to a 26.0% increase in volumes purchased and an 11.1% increase in prices;

 

•

Natural gas purchases from third parties for resale to the retail market (residential and small business and companies) increased Ps 0.1 billion, 6.4% higher than Q3 2016, due to a 10.9% increase in prices, which was partially offset by a 4.1% decrease in volumes purchased;

 

•

Fuel imports decreased Ps 1.0 billion, 48.4% lower than Q3 2016, due to drops of 73.5% and 20.8% in diesel and jet fuel volumes, respectively, which was partially offset by an increase of 35.7% in the import price of diesel and 24.3% for jet fuel.

Administration expenses for Q3 2017 were Ps 2.2 billion, 12.1% higher than Q3 2016, primarily to higher personnel expenses and higher costs for services and IT licenses.

 

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		Consolidated Results Q3 2017

 

 

 

 

Selling expenses for Q3 2017 were Ps 4.7 billion, 19.1% higher than Q3 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.

Exploration expenses for Q3 2017 were Ps 0.3 billion, 7.1% higher than Q3 2016.

In the third quarter of 2016, the Company had recognized an impairment charge for property, plant and equipment of Ps 36.2 billion, mainly caused by an expected reduction in prices for crude oil in the Argentine domestic market, together with the estimated evolution of costs based on both the impact of macroeconomic factors and the operational behavior of the company’s assets.

Other operating results, net, for Q3 2017 were a gain of Ps 0.3 billion, compared to the loss of Ps 26 million in Q3 2016. In Q3 2017, this category included a positive re-assessment of legal contingencies, which in Q3 2016 included revenues of Ps 0.2 billion related to the Magallanes Integral Area Project (PIAM), as a result of the agreement reached with the partner to participate in the extension of the concession in this area.

Financial results for Q3 2017 were a loss of Ps 2.5 billion, an improvement of 25.4% compared to the loss of Ps 3.3 billion in Q3 2016. There were positive foreign exchange effects on net monetary liabilities in Argentine peso terms of Ps 1.8 billion, due to the greater devaluation of the Argentine peso in Q3 2017 compared to Q3 2016. Interest expenses were higher by Ps 0.2 billion as a result of greater average indebtedness during Q3 2017 compared to Q3 2016, almost entirely offset by lower interest rates for debt in Argentine peso terms. In addition, the fair value of investments in financial assets decreased Ps 0.8 billion.

Income tax for Q3 2017 was Ps 0.8 billion compared to the positive charge of Ps 7.5 billion in Q3 2016. This increase was mainly due to higher deferred tax of Ps 8.2 billion, and to a lesser extent, by an increase of Ps 0.1 billion in current income tax. The higher deferred tax charge is mainly due to the recording in Q3 2016 of the deferred asset related to the aforementioned property, plant and equipment.

Net income for Q3 2017 was a gain of Ps 0.2 billion, compared to a loss, before the impairment charge, of Ps 6.7 billion in Q3 2016. Considering the asset impairment charges, net loss in Q3 2016 was Ps 30.3 billion.

Total capital expenditures for property, plant and equipment in Q3 2017 were Ps 15.9 billion, 6.0% higher than Q3 2016.

 

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		Consolidated Results Q3 2017

 

 

 

 

3. ANALYSIS OF OPERATING RESULTS BY BUSINESS SEGMENT FOR Q3 2017

3.1 UPSTREAM

 

Q3 2016				Q2 2017				Q3 2017				Var.% Q3 17 / Q3 16				UPSTREAM		Jan-Sep 2016				Jan-Sep 2017				Var.% 2017 / 2016
	(35,137)				(884	)			360				N/A			Operating income (Million Ps)			(28,980	)			375				N/A
	1,051				(884	)			360				-65.7	%		Operating income before Impairment of assets (Million Ps)			7,208				375				-94.8	%
	28,096				26,606				29,935				6.5	%		Revenues (Million Ps)			85,265				84,318				-1.1	%
	247.1				218.3				227.2				-8.1	%		Crude oil production (Kbbld)			246.3				226.5				-8.1	%
	50.1				51.4				48.6				-3.0	%		NGL production (Kbbld)			52.0				51.5				-0.8	%
	44.9				44.6				44.1				-1.7	%		Gas production (Mm3d)			44.6				44.6				0.2	%
	579.3				550.1				553.2				-4.5	%		Total production (Kboed)			578.5				558.8				-3.4	%
	312				833				334				7.1	%		Exploration costs (Million Ps)			1,504				1,760				17.0	%
	11,665				9,905				12,499				7.1	%		Capital Expenditures (Million Ps)			35,329				31,852				-9.8	%
	10,965				10,079				11,483				4.7	%		Depreciation (Million Ps)			29,795				31,497				5.7	%
																Realization Prices
	59.9				52.5				51.4				-14.2	%		Crude oil prices in domestic market Period average (USD/bbl)			60.8				52.3				-14.0	%
	4.79				4.91				4.92				2.7	%		Average gas price (USD/Mmbtu)			4.74				4.93				4.0	%

Operating income for the Upstream business segment for Q3 2017 was Ps 0.4 billion, compared to Ps 1.1 billion for Q3 2016, before asset impairment charges. Considering the asset impairment charges, the Upstream operating result in Q3 2016 was a loss of Ps 35.1 billion.

Revenues were Ps 29.9 billion in Q3 2017, a 6.5% increase over Q3 2016, due to the following factors:

 

•

Natural gas revenues from sales to third parties increased Ps 2.0 billion, 21.2% higher than Q3 2016. The average sale price was 4.92 USD/Mmbtu, 2.7% higher than in Q3 2016. Volumes sold increased by 2.7% in Q3 2017, compared to Q3 2016. 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 0.5 billion, 2.8% lower than Q3 2016. The average price of crude oil in dollars on the local market in Q3 2017 fell by 14.2% to 51.4 USD/bbl as a result of the price agreement between producers and refiners for 2017. Crude oil volumes transferred between business segments fell 2.3%, while sales to third parties increased by 17.5%.

 

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		Consolidated Results Q3 2017

 

 

 

 

Total Hydrocarbon production for Q3 2017 was 553.2 Kboed, 4.5% lower than Q3 2016. Crude oil production for Q3 2017 was 227.2 Kbbld, a decrease of 8.1%. The natural decline of mature fields, together with the effects of the strong rain and snowstorms that principally affected the province of Chubut during Q2 2017, and to a lesser extent the province of Santa Cruz, were the principal causes of this reduction in crude production. Natural gas production for Q3 2017 was 44.1 Mm3d, 1.7% less than Q3 2016. NGL production for Q3 2017 was 48.6 Kbbld, 3.0% lower than Q3 2016.

Regarding the development activity, in Q3 2017, 124 new wells were put into production, including the shale and tight wells mentioned below.

Hydrocarbon production in shale areas, net to YPF for Q3 2017 was 37.62 Kboed, 10.5% higher than Q3 2016. This production is composed of 17.08 Kbbld of crude oil, 6.07 Kbbld of NGL and 2.75 Mm3d of natural gas.

During Q3 2017, 17 wells were put in production targeting the Vaca Muerta formation, for a total of 596 wells at the end of Q3 2017, including 8 active drilling rigs and 8 workovers.

With respect to tight gas development, net production in Q3 2017 reached a total of 14.11 Mm3d, of which 88.3% came from areas operated by YPF. During Q3 2017, 24 new wells were put into production, 5 in Aguada Toledo-Sierra Barrosa, 8 in Rincón del Mangrullo and 11 in Estación Fernandez Oro.

Operating costs (excluding exploration expenses) for Q3 2017 were Ps 29.7 billion, 11.1% higher than Q3 2016, mainly due to the following:

 

•

Lifting costs increased Ps 1.4 billion, a 14.9% increase, reflecting a 20.5% increase in the unit indicator in Argentine peso terms, weighted by the decrease in production discussed above;

 

•

Depreciation of property, plant and equipment increased Ps 0.5 billion, a 4.8% 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, offset by the net reduction of these assets as the result of the asset impairment charges recorded in Q3 2016;

 

•

Net increase in royalties of Ps 145 million, 3.3% higher than Q3 2016, as a result of a decrease of Ps 248 million in royalties on crude oil production due to lower production, and an increase of 393 million in royalties on natural gas production caused by higher wellhead values for this product.

Exploration expenses for Q3 2017 were Ps 0.3 billion, an increase of 7.1% compared to Ps 0.3 billion for Q3 2016, with no significant variations to note.

In the third quarter of 2016, the Company had recognized an impairment charge for property, plant and equipment of Ps 36.2 billion, mainly caused by an expected reduction in prices for crude oil in the Argentine domestic market, together with the estimated evolution of costs based on both the impact of macroeconomic factors and the operational behavior of the company’s assets.

Unit cash costs in U.S. dollars showed a decrease of 1.9%, from 20.9 USD/bpe in Q3 2016 to 20.5 USD/bpe in Q3 2017 (including taxes of 6.1 USD/bpe and 5.8 USD/bpe, respectively). In turn, the average lifting cost for YPF was 12.6 USD/bpe, 4.2% higher than the 12.0 USD/bpe in Q3 2016.

 

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		Consolidated Results Q3 2017

 

 

 

 

CAPEX

Capital expenditures for the Upstream business segment for Q3 2017 were Ps 12.5 billion, 7.1% higher than the Ps 11.7 billion in Q3 2016.

Of these capital expenditures, 71% were invested in drilling and workover activities, 21% in facilities, and the remaining 8% in exploration and other activities in the Upstream business segment.

In the Neuquina basin area, activities for Q3 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, Bandurria, Río Neuquén, La Ribera and Chachahuen blocks. Pilots were started with a focus on Vaca Muerta at the Aguada de la Arena and Rincón del Mangrullo blocks. Development activities continued at the Cuyana basin, mainly in the Barrancas, La Ventana, Mesa Verde, Ugarteche, Vizcacheras, Cerro Fortunoso, Desfiladero Bayo, and Puesto Molina blocks. In the Golfo San Jorge basin, activity was concentrated in the Manantiales Behr and El Trébol-Escalante blocks. In Santa Cruz, drilling rig activity was restarted at Estancia Cholita (Cañadón Yatel) and Cañadón Seco Leon. In the Austral basin, perforation activity continued in the Lago Fuego block.

Exploration activities for Q3 2017 covered the Neuquina, Golfo San Jorge, Austral and Cuyana basins. In the Neuquina basin, exploratory activity was in the Salinas del Huitrín, Estación Fernandez Oro, Chachahuen, La Calera and Loma la Lata blocks. In the Golfo San Jorge basin, activity focused on the Cañadón de la Escondida block, and in the Austral basin, it focused on the Fracción E block. In the Cuyana basin, exploratory activity was performed in the Mesa Verde block.

During Q3 2017, three (two crude oil and one gas) exploratory wells were completed.

 

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		Consolidated Results Q3 2017

 

 

 

 

3.2 DOWNSTREAM

 

Q3 2016				Q2 2017				Q3 2017				Var.% Q3 17 / Q3 16				DOWNSTREAM		Jan-Sep 2016				Jan-Sep 2017				Var.% 2017 / 2016
	332				3,093				3,204				865.1	%		Operating income (Million Ps)			2,573				10,661				314.3	%
	42,992				45,611				49,845				15.9	%		Revenues (Million Ps)			120,399				139,636				16.0	%
	4,257				4,172				4,119				-3.2	%		Sales of refined products in domestic market (Km3)			12,420				12,244				-1.4	%
	303				289				361				19.1	%		Exportation of refined products (Km3)			1,070				1,069				-0.1	%
	227				214				198				-12.7	%		Sales of petrochemical products in domestic market (*) (Ktn)			622				586				-5.9	%
	80				52				54				-32.5	%		Exportation of petrochemical products (Ktn)			149				149				0.1	%
	292				295				294				0.6	%		Crude oil processed (Kboed)			292				293				0.5	%
	91%				92	%			92	%			0.6	%		Refinery utilization (%)			91	%			92	%			0.5	%
	2,486				1,935				2,434				-2.1	%		Capital Expenditures (Million Ps)			6,516				5,648				-13.3	%
	1,317				1,621				1,837				39.5	%		Depreciation (Million Ps)			3,795				5,027				32.5	%
	645				655				642				-0.4	%		Average domestic market gasoline price (**) (USD/m3)			625				655				4.7	%
	629				624				602				-4.3	%		Average domestic market diesel price (**) (USD/m3)			618				622				0.7	%

 

(*)	Fertilizer sales not included

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

Operating income for the Downstream business segment for Q3 2017 was Ps 3.2 billion, 865.1% higher than the Ps 0.3 billion reported for Q3 2016.

Revenues were Ps 49.8 billion for Q3 2017, 15.9% higher than Q3 2017, due primarily to the following factors:

 

•

Gasoline revenues increased Ps 3.1 billion, 26.0% higher than Q3 2016, due to a 15.6% increase in gasoline mix prices and a 9.0% increase in sales volume, including a 25.4% increase in sales volumes of Infinia gasoline, a premium gasoline product;

 

•

Diesel revenues increased Ps 2.3 billion, 12.3% higher than Q3 2016, due to a 10.9% increase in diesel mix prices, and a 1.3% increase in volumes sold. There was a 39.5% increase in sales volumes of Infinia diesel, a premium diesel product;

 

•

Fuel oil revenues in the Argentine domestic market decreased Ps 2.0 billion, 70.3% lower than Q3 2016, due to a 67.9% decrease in sales volumes to power generation plants and a 7.5% decrease in prices;

 

•

Remaining domestic sales increased by Ps 2.0 billion, 35.6% higher than Q3 2016, with emphasis on asphalt, with a Ps 0.5 billion increase, 134.0% higher than Q3 2016, and increase of 35.5% in lubricant sales, 33.3% in petrochemical products, 28.4% in LPG and 28.7% in Jet Fuel, all principally due to higher prices for these products;

 

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		Consolidated Results Q3 2017

 

 

 

 

•

Export revenues increased Ps 1.6, 35.6% higher than Q3 2016, due primarily to a 48.2% increase in export revenues of Jet Fuel as a result of increases in prices in Argentine peso terms of 23.7% and an increase of 19.8% in volumes sold, as well as increased export revenue of 139.8% for LPG and 407.5% for virgin naphtha on higher volumes and prices. Exports of flour and soybean oil increased Ps 0.4 billion, 28.8% higher than Q3 2016, due to an increase in volumes, without significant variations in price.

Costs and operating expenses in Q3 2017 increased by Ps 3.3 billion, 8.4% higher than Q3 2016, with the following highlights:

 

•

Crude oil purchases increased Ps 1.9 billion, 8.6% higher than Q3 2016. Purchases from third parties increased by 84.7%, while crude volume transferred from the Upstream segment decreased by 2.3%. In turn, crude prices in pesos fell by 1.6%, related to crude price movements on the domestic market, as agreed upon between producers and refiners for 2017;

 

•

Net biofuel purchases increased Ps 1.1 billion, 31.1% higher than Q3 2016, due principally to an increase of 15.1% in the price of bioethanol and 22.8% in the FAME price, and to an increase in volumes purchased of ethanol biofuel of 15.4% and of FAME, of 5.5%;

 

•

Grain purchase in the agricultural sales segment through the form of barter increased Ps 0.4 billion, 39.9% higher than Q3 2016, which are recorded as purchases;

 

•

Fuel imports decreased Ps 1.0 billion, 48.4% lower than Q3 2016, due to drops of 73.5% and 20.8% in diesel and jet fuel volumes, respectively, which was partially offset by an increase of 35.7% in the import price of diesel and 24.3% for jet fuel.

 

•

Costs of products sold decreased Ps 1.9 billion, principally as a result of higher valuation of stocks than in Q3 2016, and to a lesser degree, by an accumulation of stock, especially of crude oil, due to the largest purchases made this quarter;

 

•

Production costs related to refining increased Ps 0.4 billion, 19.3% higher than Q3 2016, due primarily to increased costs for the consumption of materials, spare parts, electricity and other supplies and fuels. As a result of this, and also considering that the level of processing at refineries was 0.6% higher, the unit refining cost was 18.6% higher in Q3 2017 than in Q3 2016. Transportation costs related to production (shipping, oil pipelines, and multiproduct pipelines) increased Ps 0.3 billion, 23.3% higher than Q3 2016; and

 

•

Depreciation of property, plant and equipment increased Ps 0.5 billion, 42.6% higher than Q3 2016, resulting from an increase in the value of assets subject to depreciation compared to Q3 2016, taking into account the commencement of operations in 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 0.8 billion, 20.8%, higher than Q3 2016, principally related to the increase in fuel prices in the domestic market, the increase in depreciation of commercial assets and higher tax burdens on bank debts and credits.

 

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The volume of crude oil processed in Q3 2017 was 294 Kbbld, 0.6% higher than Q3 2016. These similar processing levels resulted in an increase in diesel production of 6.3% and an increase in gasoline of 6.3%, and a lower production of fuel oil of 43.2%, while production increased for other refined products, such as Jet Fuel, petrochemical naphtha, asphalts, petroleum coal and lubricant bases, all compared to Q3 2016.

CAPEX

Capital expenditures for the Downstream business segment for Q3 2017 were Ps 2.4 billion, a 2.1% decrease compared to Q3 2016.

Revamping of the Topping III unit at the Luján de Cuyo refinery was completed, and it began operations in August. In turn, pumping tests began at the Señal Cerro Bayo – Puesto Hernández crude oil Pipeline, which will make it possible to increase the crude oil supply to the Luján de Cuyo refinery, and adaptation work continues for logistics facilities, with safety and environmental improvements.

 

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3.3 GAS AND ENERGY

 

Q3 2016				Q2 2017				Q3 2017				Var.% Q3 17 / Q3 16				GAS & POWER		Jan-Sep 2016				Jan-Sep 2017				Var.% 2017 / 2016
	786				1,025				1,481				88.4	%		Operating income (Million Ps)			1,183				3,064				159.0	%
	8,360				15,749				17,178				105.5	%		Revenues (Million Ps)			20,622				46,672				126.3	%
	420				992				670				59.5	%		Capital Expenditures (Million Ps)			1,257				2,605				107.2	%
	72				65				67				-6.9	%		Depreciation (Million Ps)			217				197				-9.2	%

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 Q3 2017 was Ps 1.5 billion, compared to Ps 0.8 billion in Q3 2016. This increase was mainly due to the gradual restructuring of rates obtained by our controlled company Metrogas S.A., which recorded an operating income of Ps 0.7 billion in Q3 2017, compared to an operating loss of Ps 53 million in Q3 2016. Operating results from our controlled company YPF Energía Eléctrica S.A. in this segment also improved.

CAPEX

Capital expenditures for the Gas and Energy business segment for Q3 2017 were Ps 0.7 billion, 59.5% higher than Q3 2016.

The highlights for Q3 2017 are putting Central Loma Campana Este into service, and the advancement in construction of the new thermoelectric plants Loma Campana I and Y-GEN, both located in the field with the same name, and the thermoelectric generation plant Y-GEN II, located in El Bracho, province of Tucumán. Also notable is the advancement of the Manantiales Behr wind farm in Comodoro Rivadavia. The YGEN and YGEN II projects are the result of a joint venture with General Electric.

Loma Campana Este has already begun production and Loma Campana I has finished the startup tests to obtain its commercial license and begin production. It is estimated that the Y-GEN central plant will begin production in the last quarter of 2017, while Y-GEN II will commence operations in the first half of 2018. The wind farm will gradually be put into service in 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 Q3 2017 was a loss of Ps 1.3 billion, compared to the loss of Ps 0.7 billion in Q3 2016, an increase of 82.9%. This change was due primarily to increased personnel costs, higher adjustments for judicial contingencies and higher informatics licenses, together with the lower 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 negative Ps 0.7 billion in Q3 2017. These adjustments were positive Ps 0.1 billion in Q3 2016. In Q3 2017, there was an increase in the difference between transfer prices between business and the replacement cost of the company’s inventory, as compared to Q3 2016, when there were no significant variations.

3.5 RELATED COMPANIES

Results from related companies for Q3 2017 were a gain of Ps 0.4 billion, compared to a gain of Ps 0.1 billion for Q3 2016. This variation was primarily due to better results obtained by Mega, Central Dock Sud and YPF GAS.

4. LIQUIDITY AND SOURCES OF CAPITAL

In Q3 2017, cash flows provided by operating activities were Ps 13.6 billion, 19.0% lower than Q3 2016. This reduction of Ps 3.2 billion was due to an increase in working capital in Q3, mostly due to an increase in balances receivable from the Gas Plan Program and the public transportation diesel subsidy, as well as accounts receivable from CAMMESA and the natural gas distribution companies. These effects were partially offset by an increase in Adjusted EBITDA of Ps 2.4 billion.

Net cash flows used in investing activities were Ps 14.0 billion for Q3 2017, 29.9% lower than Q3 2016. Investments in fixed and intangible assets were Ps 16.3 billion in Q3 2017, 13.3% higher than Q3 2016. In Q3 2016, there was an increase in financial assets of Ps 3.1 billion, and in Q3 2017, financial assets were realized for Ps 2.4 billion.

For Q3 2017, the company’s net cash flows provided by financing activities were Ps 2.6 billion, compared to the net increase of Ps 4.2 billion in Q3 2016. This change was due to lower net borrowing and refinancing debt of Ps 2.3 billion and higher interest payments of Ps 0.2 billion, effects that have already been partially offset in Q3 2016 by a dividend payment of Ps 0.9 billion.

Cash and cash equivalents as explained above, 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 30.0 billion ₍₁₎ on September 30, 2017. A highlight of this quarter is the new international issuance of U.S. $750 million in debt securities.

 

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Total debt in U.S. dollars was USD 10.0 billion, net debt was USD 8.3 billion(1), and the Net debt / Adjusted EBITDA LTM ratio was 2.07x(2).

The average interest rate for debt denominated in Argentine pesos at the end of Q3 2017 was 22.52%, while the average interest rate for debt denominated in U.S. dollars was 7.66%.

The following table lists issuances of YPF’s debt securities made during and after Q3 2017:

 

YPF Note

Amount

Interest Rate

Maturity

Series LIII

USD 750 M

6.95

%

120 months

 

(1)	Net Debt: Includes investments in financial assets (government securities) of US$ 817 million at market value

 

(2)	Net Debt: US$ 8,266 million / Adjusted EBITDA LTM: US$3,999 million = 2.07x

 

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5. TABLES AND NOTES Q3 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)

 

Q3 2016				Q2 2017				Q3 2017				Var.% Q3 17 / Q3 16						Jan-Sep 2016				Jan-Sep 2017				Var.% 2016 / 2017
	55,849				60,162				66,034				18.2	%		Revenues			155,542				183,199				17.8	%
	(48,028)				(49,675	)			(56,108	)			16.8	%		Costs			(130,978	)			(151,581	)			15.7	%
	7,821				10,487				9,926				26.9	%		Gross profit			24,564				31,618				28.7	%
	(3,934)				(4,209	)			(4,684	)			19.1	%		Selling expenses			(10,678	)			(12,780	)			19.7	%
	(1,939)				(2,001	)			(2,174	)			12.1	%		Administration expenses			(5,258	)			(5,965	)			13.4	%
	(312)				(833	)			(334	)			7.1	%		Exploration expenses			(1,504	)			(1,760	)			17.0	%
	(36,188)				—				—				N/A			Impairment of property, plant and equipment and intangible assets			(36,188	)			—				N/A
	(26)				22				316				N/A			Other operating results, net			1,422				(86	)			N/A
	(34,578)				3,466				3,050				N/A			Operating income (loss)			(27,642	)			11,027				N/A
	110				92				432				292.7	%		Results on investments in companies and joint ventures			373				546				46.4	%
	1,483				3,001				4,350				193.3	%		Finance Income			12,592				8,963				-28.8	%
	(6,064)				(2,720	)			(7,297	)			20.3	%		Finance Cost			(18,234	)			(18,865	)			3.5	%
	1,290				658				491				-61.9	%		Other financial results			1,709				1,224				-28.4	%
	(3,291)				939				(2,456	)			-25.4	%		Financial results, net			(3,933	)			(8,678	)			120.6	%
	(37,759)				4,497				1,026				N/A			Net (loss) profit before income tax			(31,202	)			2,895				N/A
	7,503				(4,225	)			(780	)			N/A			Income tax			1,048				(2,185	)			N/A
	(30,256)				272				246				N/A			Net (loss) profit for the period			(30,154	)			710				N/A
	(45)				60				153							Net (loss) profits for noncontrolling interest			(196	)			380
	(30,211)				212				93				N/A			Net (loss) profit for shareholders of the parent company			(29,958	)			330				N/A
	(77.14)				0.54				0.24				N/A			Earnings per share, basic and diluted			(76.49	)			0.84				N/A
	2,848				9,593				5,634				97.8	%		Other comprehensive Income			22,564				11,584				-48.7	%
	(27,408)				9,865				5,880				N/A			Total comprehensive income for the period			(7,590	)			12,294				N/A
	14,609				16,177				17,043				16.7	%		Adj. EBITDA (*)			44,283				50,046				13.0	%

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

 

(*)	Adjusted EBITDA = Operating income + Depreciation and impairment of property, plant and equipment and intangible assets + Amortization of intangible assets + unproductive exploratory drillings.

 

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5.2 CONSOLIDATED BALANCE SHEET

YPF SOCIEDAD ANONIMA AND CONTROLLED COMPANIES

(Q3 2017 figures, unaudited, figures expressed in millions of pesos)

 

		12/31/2016				09/30/2017
Noncurrent Assets
Intangible assets			8,114				9,032
Properties, plant and equipment			308,014				334,670
Investments in companies and joint ventures			5,488				6,447
Deferred tax assets, net			564				441
Other receivables			3,909				1,640
Trade receivables			87				392
Investment in financial assets			7,737				6,618
Total Non-current assets			333,913				359,240
Current Assets
Inventories			21,820				25,040
Other receivables			13,456				11,644
Trade receivables			33,645				41,988
Investment in financial assets			7,548				7,491
Cash and equivalents			10,757				15,881
Total current assets			87,226				102,044
Total assets			421,139				461,284
Shareholders’ equity
Shareholders’ contributions			10,403				10,356
Reserves, other comprehensive income and retained earnings			108,352				120,266
Noncontrolling interest			(94	)			286
Total Shareholders’ equity			118,661				130,908
Noncurrent Liabilities
Provisions			47,358				56,116
Deferred tax liabilities			42,465				44,033
Other taxes payable			98				241
Loans			127,568				148,232
Other liabilities			336				368
Accounts payable			2,187				1,577
Total Noncurrent Liabilities			220,012				250,567
Current Liabilities
Provisions			1,994				1,818
Income tax payable			176				201
Other taxes payable			4,440				6,518
Salaries and social security			3,094				3,384
Loans			26,777				24,430
Other liabilities			4,390				374
Accounts payable			41,595				43,084
Total Current Liabilities			82,466				79,809
Total Liabilities			302,478				330,376
Total Liabilities and Shareholders’ Equity			421,139				461,284

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)

 

Q3 2016				Q2 2017				Q3 2017						Jan-Sep 2016				Jan-Sep 2017
												Operating activities
	(30,256)				272				246			Net income (loss)			(30,154	)			710
	(110)				(92	)			(432	)		Income (loss) from investments in companies and joint ventures			(373	)			(546	)
	12,652				11,972				13,718			Depreciation of property, plant and equipment			34,411				37,454
	188				202				222			Amortization of intangible assets			511				605
	996				1,315				1,034			Consumpsion of materials and retirement of property, plant and equipment and intagible assets, net of provisions			3,601				3,218
	(7,503)				4,225				780			Income tax charge			(1,048	)			2,185
	1,289				510				135			Net increase in provisions			3,792				2,316
	36,188				—				—			Impairment of property, plant and equipment and intangible assets			36,188				—
	2,893				(1,024	)			1,904			Interest, exchange differences and other			2,193				7,249
	51				44				46			Stock compensation plan			108				116
	—				—				—			Results due to deconsolidation of companies			(1,528	)			—
												Changes in assets and liabilities:
	(505)				(769	)			(8,952	)		Trade receivables			(15,393	)			(7,827	)
	2,399				(278	)			(766	)		Other receivables			7,034				2,131
	(79)				(1,408	)			(34	)		Inventories			(198	)			(1,331	)
	(1,030)				(1,156	)			4,321			Accounts payable			(2,787	)			4,310
	307				(675	)			752			Other Taxes payable			(142	)			2,196
	341				238				706			Salaries and Social Securities			290				293
	40				18				452			Other liabilities			177				(480	)
	(355)				(393	)			(315	)		Decrease in provisions included in liabilities for payments / utilization			(1,303	)			(981	)
	1				216				17			Dividends received			521				328
	—				—				—			Insurance charge for loss of profit			607				—
	(786)				(234	)			(282	)		Income tax payments			(2,347	)			(761	)
	16,721				12,983				13,552			Cash flow from operating activities			34,160				51,185
												Investing activities
	(14,368)				(13,104	)			(16,273	)		Acquisitions of property, plant and equipment and Intangible assets			(46,970	)			(43,951	)
	(388)				(65	)			(92	)		Contributions and acquisitions of interests in companies and joint ventures			(388	)			(429	)
	(2,093)				—				—			Loans to third parties			(2,093	)			—
	—				—				2,404			Collection for sale of financial assets			—				2,404
	(3,078)				3				—			Investment in financial assets			(2,168	)			—
	—				503				—			Interest received from financial assets			—				511
	—				—				—			Insurance charge for material damages			355				—
	(19,927)				(12,663	)			(13,961	)		Cash flows from investing activities			(51,264	)			(41,465	)
												Financing activities
	(15,488)				(6,687	)			(9,797	)		Payment of loans			(49,442	)			(24,877	)
	(4,728)				(3,208	)			(4,948	)		Payment of interests			(11,621	)			(13,525	)
	25,304				11,291				17,343			Proceeds from loans			79,770				33,403
	5				(100	)			—			Acquisition of own shares			(50	)			(100	)
	—				—				—			Non controling interest contribution			50				—
	(889	)			—				—			Payments of dividends			(889	)			—
	4,204				1,296				2,598			Cash flows from financing activities			17,818				(5,099	)
	743				415				237			Effect of changes in exchange rates on cash and equivalents			1,681				503
	—				—				—			Deconsolidation of subsidiaries			(148	)			—
	1,741				2,031				2,426			Increase (decrease) in Cash and Equivalents			2,247				5,124
	15,893				11,424				13,455			Cash and equivalents at the beginning of the period			15,387				10,757
	17,634				13,455				15,881			Cash and equivalents at the end of the period			17,634				15,881
	1,741				2,031				2,426			Increase (decrease) in Cash and Equivalents			2,247				5,124
												COMPONENTS OF CASH AND EQUIVALENT AT THE END OF THE PERIOD
	11,163				5,438				6,639			Cash			11,163				6,639
	6,471				8,017				9,242			Other Financial Assets			6,471				9,242
	17,634				13,455				15,881			TOTAL CASH AND EQUIVALENTS AT THE END OF THE PERIOD			17,634				15,881

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)

 

Q3 2017		Upstream				Gas & Power				Downstream				Corporate & Other				Consolidation Adjustments				Total
Revenues			240				16,209				49,558				706				(679	)			66,034
Revenues from intersegment sales			29,695				969				287				1,808				(32,759	)			—
Revenues			29,935				17,178				49,845				2,514				(33,438	)			66,034
Operating Income (loss)			360				1,481				3,204				(1,273	)			(722	)			3,050
Investments in companies			—				244				188				—				—				432
Depreciation of property, plant and equipment			11,483				67				1,837				331				—				13,718
Impairment of property, plant and equipment and intangible assets			—				—				—				—				—				—
Acquisitions of fixed assets			12,499				670				2,434				300				—				15,903
Assets			234,575				48,463				139,815				39,844				(1,413	)			461,284
Q3 2016		Upstream				Gas & Power				Downstream				Corporate & Other				Consolidation Adjustments				Total
Revenues			5,098				7,382				42,839				530				—				55,849
Revenues from intersegment sales			22,998				978				153				1,999				(26,128	)			—
Revenues			28,096				8,360				42,992				2,529				(26,128	)			55,849
Operating Income (loss)			(35,137	)			786				332				(696	)			137				(34,578	)
Investments in companies			—				(1	)			111				—				—				110
Depreciation of property, plant and equipment			10,965				72				1,317				298				—				12,652
Impairment of property, plant and equipment and intangible assets			36,188				—				—				—				—				36,188
Acquisitions of fixed assets			11,680				420				2,486				426				—				15,012
Assets			236,173				25,866				125,536				34,739				(1,175	)			421,139

 

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5.5 MAIN FINANCIAL MAGNITUDES IN U.S. DOLLARS

(Unaudited figures)

 

Million USD		2016 Q3				2017 Q2				2017 Q3				Var Q3 17 / Q3 16				2016 Jan-Sep				2017 Jan-Sep				Var 2017 / 2016
INCOME STATMENT
Revenues			3,748				3,837				3,831				2.2	%			10,720				7,479				-30.2	%
Costs of sales			(3,224	)			(3,168	)			(3,255	)			1.0	%			(9,023	)			(6,186	)			-31.4	%
Gross profit			525				669				576				9.7	%			1,697				1,293				-23.8	%
Other operating expenses, net			(2,846	)			(448	)			(399	)			N/A				(3,531	)			(827	)			-76.6	%
Operating income			(2,321	)			221				177				N/A				(1,834	)			466				N/A
Depreciation and impairment of property, plant &			3,278				764				796				-75.7	%			4,799				1,549				-67.7	%
equipment and intangible assets
Amortization of intangible assets			13				13				13				2.1	%			35				24				-30.5	%
Unproductive exploratory drillings			11				34				3				-71.2	%			57				27				-52.8	%
Adj. EBITDA			981				1,032				989				0.9	%			3,057				2,065				-32.4	%
UPSTREAM
Revenues			1,886				1,697				1,737				-7.9	%			5,880				3,514				-40.2	%
Operating income			(2,358	)			(56	)			21				N/A				(1,930	)			78				N/A
Depreciation			736				643				666				-9.5	%			2,052				1,302				-36.6	%
Capital expenditures			783				632				725				-7.4	%			2,436				1,330				-45.4	%
Adj. EBITDA			817				621				690				N/A				179				1,407				N/A
DOWNSTREAM
Revenues			2,886				2,909				2,875				-0.3	%			8,299				5,702				-31.3	%
Operating income			22				197				186				734.3	%			181				465				156.5	%
Depreciation			88				103				107				20.6	%			262				207				-20.9	%
Capital expenditures			167				123				141				-15.4	%			449				223				-50.3	%
Adj. EBITDA			111				301				292				164.3	%			443				672				51.7	%
GAS & ENERGY
Revenues			561				1,004				940				67.6	%			1,415				1,820				28.6	%
Operating income			53				65				86				62.9	%			80				122				51.1	%
Depreciation			5				4				4				-19.6	%			15				8				-46.0	%
Capital expenditures			28				63				39				37.9	%			86				99				14.8	%
Adj. EBITDA			58				70				90				56.0	%			95				130				35.9	%
CORPORATE AND OTHER
Operating income			(47	)			-15				-74				58.1	%			(54	)			(158	)			192.6	%
Capital expenditures			29				13				17				-39.1	%			80				35				-56.0	%
CONSOLIDATION ADJUSTMENTS
Operating income			9				49				(42	)			N/A				(11	)			(61	)			444.0	%
Average exchange rate of period			14.90				15.68				17.23								14.51				16.18

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. Accumulated periods correspond to the sum of the quarterly results.

 

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		Consolidated Results Q3 2017

 

 

 

 

5.6 MAIN PHYSICAL MAGNITUDES

(Unaudited figures)

 

		2016																						2017
		Unit		Q1				Q2				Q3				Q4				Cum. 2016				Q1				Q2				Q3				Cum. 2017
Production
Crude oil production		Kbbl			22,656				22,102				22,735				22,051				89,544				21,058				19,867				20,904				61,830
NGL production		Kbbl			5,124				4,512				4,608				4,987				19,230				4,923				4,680				4,469				14,072
Gas production		Mm3			4,008				4,074				4,127				4,099				16,308				4,076				4,056				4,057				12,189
Total production		Kboe			52,986				52,237				53,299				52,816				211,338				51,618				50,055				50,891				152,564
Henry Hub		USD/Mbtu			2.09				1.95				2.81				2.98				2.46				3.32				3.18				3.00				3.17
Brent		USD/Bbl			37.88				45.56				45.79				49.19				43.56				53.68				49.67				52.11				51.82
Sales
Sales of petroleum products
Domestic market
Gasoline		Km3			1,283				1,119				1,178				1,248				4,828				1,297				1,220				1,284				3,800
Diesel		Km3			1,855				2,038				1,955				1,955				7,803				1,792				1,954				1,981				5,726
Jet fuel and kerosene		Km3			130				107				135				139				510				134				117				140				391
Fuel Oil		Km3			354				350				376				189				1,269				220				264				121				605
LPG		Km3			153				242				273				171				839				152				241				189				582
Others (*)		Km3			263				270				340				342				1,214				357				377				406				1,139
Total domestic market		Km3			4,037				4,126				4,257				4,043				16,463				3,952				4,172				4,119				12,244
Export market
Petrochemical naphtha		Km3			0				0				15				86				100				57				23				46				127
Jet fuel and kerosene		Km3			121				117				130				138				507				135				123				139				396
LPG		Km3			117				17				40				128				302				115				39				70				224
Bunker (Diesel and Fuel Oil)		Km3			149				116				93				87				445				83				74				102				260
Others (*)		Km3			105				24				26				59				214				28				29				4				62
Total export market		Km3			493				275				303				498				1,568				419				289				361				1,069
Total sales of petroleum products		Km3			4,529				4,401				4,560				4,540				18,031				4,371				4,461				4,481				13,312
Sales of petrochemical products
Domestic market
Fertilizers		Ktn			24				40				91				114				269				35				39				139				214
Methanol		Ktn			55				82				105				85				327				57				84				73				214
Others		Ktn			133				125				122				144				524				116				130				125				371
Total domestic market		Ktn			212				247				318				343				1,120				208				254				337				799
Export market
Methanol		Ktn			2				1				2				2				7				1				2				1				4
Others		Ktn			25				41				78				51				195				42				51				53				145
Total export market		Ktn			27				42				80				53				202				43				52				54				149
Total sales of petrochemical products		Ktn			239				289				398				396				1,322				251				306				391				948
Sales of other products
Grain, flours and oils
Domestic market		Ktn			9				27				7				11				54				21				37				21				79
Export market		Ktn			169				311				256				151				887				159				291				331				781
Total Grain, flours and oils		Ktn			178				338				263				162				941				180				328				353				860
Main products imported
Gasolines and Jet Fuel		Km3			50				65				52				3				171				3				40				13				56
Diesel		Km3			145				239				306				45				736				152				230				77				460

 

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

 

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		Consolidated Results Q3 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: November 8, 2017				By:		/s/ Diego Celaá
				Name:		Diego Celaá
				Title:		Market Relations Officer