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, 2018

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 Q3 2018.

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Table of Contents

 

YPF S.A.

Consolidated Results

Q3 2018

 

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Table of Contents

		Consolidated Results Q3 2018

 

CONTENT

 

1. MAIN MILESTONES AND ECONOMIC MAGNITUDES FOR Q3 2018			3
2. ANALYSIS OF RESULTS FOR Q3 2018			4
3. ANALYSIS OF OPERATING RESULTS BY BUSINESS SEGMENT FOR Q3 2018			7
3.1 UPSTREAM			7
3.2 DOWNSTREAM			10
3.3 GAS AND ENERGY			13
3.4 CORPORATE 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 2018

 

Adj. EBITDA for Q3 2018 was Ps 36.8 billion, 116.0% higher than Q3 2017.

 

Q3				Q2				Q3				Var.%						Jan-Sep				Jan-Sep				Var.%
2017				2018				2018				Q3 18 / Q3 17						2017				2018				2018 / 2017
	66,034				93,034				121,188				83.5	%		Revenues (Million Ps)			183,199				290,045				58.3	%
	3,050				1,746				12,685				315.9	%		Operating income (Million Ps)			11,027				31,785				188.2	%
	246				1,508				13,207				5268.7	%		Net income (Million Ps)			710				20,701				2815.6	%
	17,043				24,782				36,821				116.0	%		Adj. EBITDA (Million Ps)			50,046				98,095				96.0	%
	17,043				24,782				36,821				116.0	%		Recurring Adj. EBITDA			50,046				86,115				72.1	%
	0.24				5.08				33.50				14047.5	%		Earnings per share (Ps per Share)			0.84				54.05				6335.2	%
	15,903				19,338				27,232				71.2	%		Capital Expenditures (Million Ps)			40,882				61,444				50.3	%

Adjusted EBITDA = Operating Income + Depreciation and Impairment of Property, Plant and Equipment and Intangible Assets + Amortization of Intangible Assets + Unproductive Exploratory Drillings.

Recurring Adjusted EBITDA: It is Adjusted EBITDA excluding the profit from the revaluation of YPF S.A.‘s investment in YPF Energía Eléctrica (YPF EE) for Ps 12.0 billion in Q1 2018.

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

1. MAIN MILESTONES AND ECONOMIC MAGNITUDES FOR Q3 2018

 

•

Revenues for Q3 2018 were Ps 121.2 billion, 83.5% higher than Q3 2017.

 

•

Operating income for Q3 2018 was Ps 12.7 billion, 315.9% higher than Q3 2017.

 

•

Net income for Q3 2018 was a gain of Ps 13.2 billion compared to net income of Ps 0.2 billion recorded for Q3 2017.

 

•

Hydrocarbon production for Q3 2018 was 529.1 Kboed, 4.3% lower than Q3 2017.

 

•

Refinery processing levels in the Downstream business segment for Q3 2018 were 87.7%, 4.6% lower than Q3 2017.

 

•

Capital expenditures in property, plant and equipment for Q3 2018 were Ps 27.2 billion, 71.2% higher than Q3 2017.

 

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		Consolidated Results Q3 2018

 

2. ANALYSIS OF RESULTS FOR Q3 2018

Revenues for Q3 2018 were Ps 121.2 billion, 83.5% higher than Q3 2017, due primarily to the following factors:

 

•

Diesel revenues increased Ps 18.6 billion, 89.6% higher than Q3 2017, due to a 74.3% increase in diesel mix average prices and an 8.8% increase in sales volumes. Sales volumes of Infinia Diesel, a premium diesel product, increased by 16.4%;

 

•

Gasoline revenues increased Ps 10.4 billion, 69.7% higher than Q3 2017, due to a 64.9% increase in gasoline mix average prices and a 2.9% increase in sales volumes.

 

•

Natural gas revenues increased Ps 8.5 billion, 73.8% higher than Q3 2017, due to higher average prices while sales volumes remained stable year over year;

 

•

Retail natural gas revenues (residential and small business and companies) increased Ps 3.5 billion, 101.3% higher than Q3 2017, mainly driven by YPF’s controlled company Metrogas S.A. (“Metrogas”), which recorded a 122.0% increase in prices, partially offset by a 3.9% decrease in volumes sold through its distribution network;

 

•

Fuel oil revenues in the Argentine domestic market decreased Ps 0.7 billion, 85.1% lower than Q3 2017, due to a 91.6% decrease in sales volumes to power generation plants which was partially offset by a 78.0% increase in prices;

 

•

Remaining domestic sales increased Ps 9.8 billion, 114.2% higher than Q3 2017. We highlight the higher sales of LPG that increased 153.5%, jet fuel by 127.9%, of petrochemical products by 76.2%, coal by 189.8%, fertilizers by 86.4% and lubricants by 44.1%, in each case mainly due to the higher prices of these products and the larger traded volumes of virgin naphtha;

 

•

Export revenues increased by Ps 5.1 billion, 84.5% higher than Q3 2017. This was primarily due to a Ps 2.6 billion or 161.0% increase in jet fuel sales, due to higher average sales prices measured in Argentine pesos of 154.2% and a 2.7% increase in the volumes sold. Exports of petrochemical products increased by Ps 0.9 billion or 110.2% due to higher sales volumes and prices. Petroleum coal exports were also recorded for Ps 0.7 billion, which had not been registered in Q3 2017.

Cost of sales for Q3 2018 was Ps 96.0 billion, 71.1% higher than Q3 2017. This includes a 63.2% increase in production costs, substantially affected by the increase in depreciations, and a 115.5% increase in purchases. Cash costs, which include costs of production and purchases but exclude depreciation and amortization, increased by 84.1%. This increase was driven by the following factors:

 

a)

Costs of production:

 

•

Depreciation of property, plant and equipment increased Ps 8.8 billion, 66.7% higher than Q3 2017, 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;

 

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		Consolidated Results Q3 2018

 

•

Lifting costs increased Ps 5.6 billion, 51.3% higher than Q3 2017, reflecting a 61.2% increase in the unit indicator in Argentine peso terms, weighted by the lower production of the period;

 

•

Royalties and other production related costs increased Ps 4.9 billion, 108.5% higher than Q3 2017. Of this increase, Ps 3.7 billion was related to an increase in royalties for crude oil production, and Ps 1.1 billion was related to an increase in royalties for natural gas production, due to higher wellhead values of these products, which are set in U.S. dollars;

 

•

Transportation costs increased Ps 1.1 billion, 47.1% higher than Q3 2017, primarily due to increases in rates and higher transported volumes;

 

•

Refining costs increased Ps 0.5 billion, 18.5% higher than Q3 2017, due primarily to higher costs for repair and maintenance services, for the consumption of materials, spare parts and other supplies, reflecting a 24.3% increase in the unit indicator in Argentine peso terms, weighted by the lower volumes processed during the period.

 

b)

Purchases:

 

•

Fuel imports increased Ps 8.1 billion, 722.1% higher than Q3 2017, mainly due to imports of premium diesel and gasoline due to higher volumes and higher international prices of these products, also considering the devaluation occurred during the period;

 

•

Crude oil purchases from third parties increased Ps 4.0 billion, 67.7% higher than Q3 2017, due to a 131.4% increase in the average purchase price from third parties in Argentine peso terms. This increase in the purchase price was mainly due to the increase in the international reference price, and considering the devaluation of the Argentine peso against the U.S. dollar, partially offset by a decrease in purchased volumes of approximately 27.5%;

 

•

Purchases of natural gas from other producers for resale in the retail distribution segment (residential and small businesses and industries) increased Ps 2.9 billion, 138.0% higher than Q3 2017 due to an increase in the purchase prices of approximately 145.1%, partially offset by a decrease in volumes purchased of 2.9%;

 

•

Biofuel purchases increased Ps 1.7 billion, 37.1% higher than Q3 2017, due to higher FAME and ethanol biofuel prices of 53.3% and 21.2%, respectively, and a 1.7% increase in volumes purchased of ethanol biofuel, partially offset by lower volumes purchased of FAME of 2.3%;

 

•

Fertilizer purchases for resale increased Ps 1.3 billion, 204.6% higher than Q3 2017, driven by a 135.6% increase in purchase prices and a 29.3% increase in volumes purchased.

Selling expenses for Q3 2018 were Ps 7.1 billion, 51.9% higher than Q3 2017. This was driven primarily by increases in transport expenses, primarily due to higher volumes sold and higher rates paid for domestic transport of fuels, as well as higher charges for depreciation of fixed assets, higher personnel expenses, higher charges in allowances for bad debt and environmental contingencies and higher taxes on banks debits and credits.

Administration expenses for Q3 2018 were Ps 3.7 billion, 68.8% higher than Q3 2017. The increase was principally due to higher personnel expenses, higher IT costs, many of which are dollarized, higher charges related to institutional advertising and higher depreciation of fixed assets.

 

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		Consolidated Results Q3 2018

 

Exploration expenses for Q3 2018 were Ps 1.1 billion, 224.0% higher than Q3 2017 mainly due to higher negative results from unproductive exploratory drilling and higher expenses on geological and geophysical studies.

Other operating results, net, for Q3 2018 was a loss of Ps 0.6 billion, compared to a gain of Ps 0.3 billion for Q3 2017 driven by higher charges in the provision for judicial contingencies, which had recorded certain reversals in Q3 2017.

Financial results for Q3 2018 were a gain of Ps 25.5 billion compared to a loss of Ps 2.5 billion in Q3 2017. This change was primarily driven by a positive foreign exchange effects on net liabilities in Argentine peso terms of Ps 30.0 billion, generated by the depreciation of the Argentine peso in Q3 2018 compared to Q3 2017 when the devaluation of the local currency had been substantially lower. Higher interest expenses of Ps 2.8 billion were also recorded in Q3 2018 due to higher average indebtedness, measured in Argentine pesos, compared to Q3 2017.

Income tax expense for Q3 2018 reached Ps 23.4 billion compared to the resulting expense of Ps 0.8 billion in Q3 2017. This difference is mainly due to the higher negative charge of Ps 22.4 billion for deferred tax recorded in both periods, resulting from the effects of the exchange rate movements in both periods, as previously mentioned.

Net income for Q3 2018 was a gain of Ps 13.2 billion, compared to a gain of Ps 0.2 billion in Q3 2017.

Capital expenditures in property, plant and equipment in Q3 2018 were Ps 27.2 billion, 71.2% higher than Q3 2017.

 

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		Consolidated Results Q3 2018

 

3. ANALYSIS OF OPERATING RESULTS BY BUSINESS SEGMENT FOR Q3 2018

3.1 UPSTREAM

 

Q3 2017				Q2 2018				Q3 2018				Var.% Q3 18 / Q3 17						Jan-Sep 2017				Jan-Sep 2018				Var.% 2018/2017
	360				2,868				12,215				3293.1	%		Operating income (Million Ps)			375				17,231				4494.9	%
	29,935				46,308				63,466				112.0	%		Revenues (Million Ps)			84,318				148,478				76.1	%
	227.2				226.3				227.5				0.1	%		Crude oil production (Kbbld)			226.5				227.1				0.3	%
	48.6				41.6				26.9				-44.6	%		NGL production (Kbbld)			51.5				38.4				-25.5	%
	44.1				44.0				43.7				-1.0	%		Gas production (Mm3d)			44.6				43.8				-1.9	%
	553.2				544.6				529.1				-4.3	%		Total production (Kboed)			558.8				541.0				-3.2	%
	334				464				1,082				224.0	%		Exploration costs (Million Ps)			1,760				1,869				6.2	%
	12,499				16,099				22,547				80.4	%		Capital Expenditures (Million Ps)			31,852				51,679				62.2	%
	11,483				19,689				18,946				65.0	%		Depreciation (Million Ps)			31,497				54,935				74.4	%
																Realization Prices
	51.4				64.6				64.3				25.0	%		Crude oil prices in domestic market Period average (USD/bbl)			52.3				64.6				23.5	%
	4.92				4.89				4.76				-3.3	%		Average gas price (*) (USD/Mmbtu)			4.93				4.80				-2.6	%

 

(*)	The average price of gas for Q2 2018 has been recalculated. The price for Q3 2018 is preliminary.

Operating income for the Upstream business segment for Q3 2018 was Ps 12.2 billion, compared to Ps 0.4 billion in Q3 2017.

Revenues were Ps 63.5 billion for Q3 2018, 112.0% higher than Q3 2017, primarily due to the following factors:

 

•

Crude oil revenues totaled Ps 42.7 billion, 131.8% or Ps 24.3 billion higher than Q3 2017. The average realization price for crude oil in Q3 2018 increased by 25.0% to US$64.3/bbl. Crude oil volumes transferred between segments increased 1.0%, while those sold to third parties decreased by 14.0%;

 

•

Natural gas revenues reached Ps 21.0 billion, 79.2% or Ps 9.3 billion higher than Q3 2017. The average realization price for natural gas in Q3 2018 decreased 3.3% to US$4.76/Mmbtu while natural gas volumes remained stable compared to Q3 2017. However, prices in terms of pesos increased 79.7% YoY, resulting in the increase of revenues.

Hydrocarbon production for Q3 2018 was 529.1 Kboed, 4.3% lower than Q3 2017. Crude oil production for Q3 2018 remained essentially stable at 227.5 Kbbld. Natural gas production for Q3 2018 was 43.7 Mm3d, 1.0% lower than Q3 2017 due to the lower demand in the quarter. NGL production for Q3 2018 was 26.9 Kbbld, 44.6% lower than Q3 2017, negatively affected by the temporary stoppage of Compañía MEGA.

 

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		Consolidated Results Q3 2018

 

With respect to development activity, 95 wells were put in production in Q3 2018, including the shale and tight wells mentioned below.

Hydrocarbon production in shale areas, net to YPF, for Q3 2018 totaled 57.5 Kboed, 58.3% higher than Q3 2017. This includes 23.6 Kbbld of crude oil, 4.8 Kbbld of NGL and 4.6 Mm3d of natural gas. During Q3 2018, 19 wells were put in production targeting the Vaca Muerta formation, for a total of 659 wells, including 12 active drilling rigs and 11 workovers.

With respect to tight development, net production in Q3 2018 reached a total of 13.0 Mm3d of natural gas, plus 3.3 Kbbld of NGL and 5.7 Kbbld of crude oil, of which 89.0% comes from YPF operated areas. During Q3 2018, 19 new wells were put into production, 9 in Estación Fernández Oro, 4 in Río Neuquén, 2 in Rincón del Mangrullo, 2 in Aguada Toledo – Sierra Barrosa, 1 in Al Norte de la Dorsal, and 1 in Octógono.

Operating costs for Q3 2018 were Ps 49.8 billion, 67.6% higher than Q3 2017 (excluding exploration expenses), mainly due to the following:

 

•

Depreciation of property, plant and equipment increased by Ps 7.5 billion, 64.9% higher than Q3 2017, primarily 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;

 

•

Lifting costs increased Ps 5.6 billion, 51.3% higher than Q3 2017, reflecting a 61.2% increase in the unit indicator in Argentine peso terms, weighted by the lower production of the period;

 

•

Royalties and other production related costs increased Ps 4.9 billion, 108.5% higher than Q3 2017. Of this increase, Ps 3.7 billion was related to an increase in royalties for crude oil production, and Ps 1.1 billion was related to an increase in royalties for natural gas production, due to higher wellhead values of these products, which are set in U.S. dollars;

 

•

Transportation costs related to production (truck, pipelines and polyducts in deposit) increased Ps 0.5 billion, 61.4% higher than Q3 2017.

It is noteworthy that the exploratory investment for Q3 2018 was 879.1% higher than Q3 2017, totaling Ps 1.5 billion. Exploration expenses for Q3 2018 were Ps 1.1 billion, increasing 224.0% compared to Ps 0.3 billion for Q3 2017. This variation was mainly due to a Ps 0.4 billion increase in negative results from unproductive exploratory wells in Q3 2018 compared to Q3 2017. Expenses for the development of geological and geophysical studies increased by Ps 56 million between Q3 2018 and Q3 2017.

In Q3 2018, the results of this segment also included higher charges in the provision for judicial contingencies, which had recorded certain reversals in Q3 2017.

Unit cash costs in U.S. dollars decreased 3.5% to US$19.8/boe for Q3 2018 from US$20.6/boe for Q3 2017, including taxes of US$6.6/boe and US$5.8/boe, respectively. In turn, the average lifting cost for YPF in Q3 2018 was US$10.5/boe, 16.5% lower than US$12.6/boe for Q3 2017.

 

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		Consolidated Results Q3 2018

 

CAPEX

Capital expenditures for the Upstream business segment for Q3 2018 were Ps 22.5 billion, 80.4% higher than Q3 2017.

Of these capital expenditures, 71.4% were invested in drilling and workover activities, 20.0% in facilities, 8.2% in exploration and the remaining 0.4% in other activities of the Upstream business segment.

In the Neuquina basin area, activities for Q3 2018 were focused on the development of the Loma Campana, Estación Fernandez Oro, El Orejano, La Amarga Chica, Rincón del Mangrullo, Río Neuquén, Chachahuen, Octógono, Punta Barda, Filo Morado and Loma La Lata blocks. Activity continues with the pilots targeting Vaca Muerta in the following blocks: Rincón del Mangrullo, La Ribera, Bajo del Toro and Aguada de la Arena. Development activities continued at the Cuyana basin, mainly in the Mesa Verde, Ugarteche, Loma Alta Sur, Barrancas, La Ventana and Cerro Fortunoso blocks. In the Golfo San Jorge basin, activity was focused on the following blocks: Manantiales Behr, El Trébol-Escalante, Seco León, Zona Central, Cañadón Yatel, Barranca Baya, Los Perales, Las Heras y Cerro de Piedra.

Exploration activities for Q3 2018 covered the Neuquina, Golfo San Jorge, Austral, Noroeste Argentino and Cuyana basins. In the Neuquina basin, exploratory activity was focused in the Filo Morado, Los Caldenes, Malargüe, Las Manadas, CNQ7 and CNQ7A blocks. In the Golfo San Jorge basin, exploration activity was focused in the Los Perales-Las Mesetas and El Trebol-Escalante blocks. In the Austral basin, exploration activity continues in Cañadón Piedra-Cabo Nombre and Los Chorrillos blocks. As for the Cuyana basin, exploratory activity was carried out in the Mesa Verde block. Additionally, in the Noroeste Argentino basin the activity was concentrated in the Aguaragüe block.

During Q3 2018, 6 (six) exploratory wells were completed: 3 (three) natural gas and 3 (three) crude oil exploratory wells.

 

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		Consolidated Results Q3 2018

 

3.2 DOWNSTREAM

 

Q3 2017				Q2 2018				Q3 2018				Var.% Q3 18 / Q3 17						Jan-Sep 2017				Jan-Sep 2018				Var.% 2018/2017
	3,204				361				-908				N/A			Operating income (Million Ps)			10,661				3,462				-67.5	%
	49,845				70,273				91,220				83.0	%		Revenues (Million Ps)			139,636				221,830				58.9	%
	4,119				4,048				4,150				0.7	%		Sales of refined products in domestic market (Km3)			12,244				12,109				-1.1	%
	361				393				343				-5.0	%		Exportation of refined products (Km3)			1,069				1,248				16.8	%
	198				208				203				2.5	%		Sales of petrochemical products in domestic market (*) (Ktn)			586				618				5.5	%
	54				138				73				35.2	%		Exportation of petrochemical products (Ktn)			149				271				81.8	%
	294				275				280				-4.6	%		Crude oil processed (Kboed)			293				282				-3.8	%
	92	%			86	%			88	%			-4.6	%		Refinery utilization (%)			92	%			88	%			-3.8	%
	2,434				2,673				3,660				50.4	%		Capital Expenditures (Million Ps)			5,648				7,588				34.3	%
	1,837				2,596				3,465				88.6	%		Depreciation (Million Ps)			5,027				8,137				61.9	%
	642				634				585				-8.8	%		Average domestic market gasoline price (**) (USD/m3)			655				637				-2.6	%
	602				613				577				-4.1	%		Average domestic market diesel price (**) (USD/m3)			622				616				-1.0	%

 

(*)	Fertilizer sales not included.

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

Operating income for the Downstream business segment for Q3 2018 was a loss of Ps 0.9 billion, in comparison to the operating profit of Ps 3.2 MM reported in Q3 2017.

Revenues were Ps 91.2 billion in Q3 2018, 83.0% higher than Q3 2017, primarily due to the following factors:

 

•

Diesel revenues increased Ps 18.6 billion, 89.6% higher than Q3 2017 due to a 74.3% increase in diesel mix prices and an 8.8% increase in sales volumes, including a 16.4% increase in sales volumes of Infinia Diesel, a premium diesel product;

 

•

Gasoline revenues increased Ps 10.4 billion, 69.7% higher than Q3 2017, due to a 64.9% increase in gasoline mix prices and a 2.9% increase in sales volumes;

 

•

Fuel oil revenues in the Argentine domestic market decreased Ps 0.7 billion, 85,1% lower than Q3 2017, due to a 91.6% decrease in sales volumes to power generation plants partially offset by a 78.0% increase in prices;

 

•

The remaining revenues in the domestic market increased by Ps 8.1 billion, 109.0% higher than Q3 2017. We highlight the higher sales of LPG by 153.5%, of jet fuel by 127.9%, of petrochemical products by 76.2%, of coal by 189,8%, fertilizers by 86,4% and lubricants by 44,1%, in each case mainly due to the higher prices of these products. In addition, larger traded volumes of virgin naphtha were recorded;

 

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		Consolidated Results Q3 2018

 

•

Export revenues in the Downstream segment increased by Ps 5.1 billion, 84.5% higher than Q3 2017. We highlight the increase in exports of jet fuel of Ps 2.6 billion, 161.0% higher than Q3 2017 due to an increase in average sales prices measured in Argentine pesos of 154.2%, and an increase of 2.7% in volumes sold. Exports of petrochemical products increased by Ps 0.9 billion or 110.2%. Exports of petroleum coal were also recorded for Ps 0.7 billion, which had not been recorded in the previous year.

Cost of sales and operating expenses for Q3 2018 were Ps 85.1 billion with an increase of Ps 43.1 billion, or 102.7%, compared to Q3 2017, primarily due to the following factors:

 

•

Crude oil purchases increased Ps 28.5 billion, 118.0% higher than Q3 2017, due to an increase in prices in Argentine peso terms of crude oil purchased of 131.8%, mainly due to the increase in the international reference price. Crude oil volumes purchased from third parties decreased 27.5% while volumes transferred from the Upstream business segment increased 1.0%;

 

•

Fuel imports increased Ps 8.1 billion, 722.1% higher than Q3 2017 due to higher imports of diesel and premium gasoline driven by the higher volumes purchased and the higher international prices of these products, considering also the devaluation that occurred in this period;

 

•

Biofuel purchases increased Ps 1.7 billion, 37.1% higher than Q3 2017, mainly due to an increase of 53,3% in the price of FAME and 21.2% in the price of ethanol biofuel and the increase in purchased volumes of ethanol biofuel of 1.7%, partially offset by a decrease in purchased volumes of FAME of 2,3%;

 

•

Fertilizer purchases for resale of Ps 1.3 billion, 204.6% higher than Q3 2017. This increase was due to an increase in the average price of approximately 135.6% and a 29.3% in the volumes sold;

 

•

Refining costs increased Ps 0.5 billion, 18.5% higher than Q3 2017. This increase was mainly driven by higher charges for repair and maintenance services, consumption of materials, spare parts and other supplies. As a result of this, and considering also that the processing level in refineries was 4.6% lower, the unit refining cost increased in Q3 2018 by 24.3% compared to the Q3 2017. In turn, transportation costs linked to production (shipping, oil pipelines and polyducts) showed an increase of Ps 0.5 billion, which represents an increase of 36.4%;

 

•

Depreciation of property, plant and equipment increased Ps 1.3 billion, 82.8%, higher tan Q3 2017, 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.

Selling expenses increased Ps 2.2 billion, or 48.9% higher than Q3 2017, mainly driven by higher transported volumes due to higher sales and higher costs for transporting products, mainly linked to the increase in fuel prices in the domestic market, higher charges for depreciation of fixed assets, higher personnel expenses, higher charges in allowances for bad debt and environmental contingencies and higher taxes on bank debits and credits.

 

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		Consolidated Results Q3 2018

 

The volume of crude oil processed in Q3 2018 was 280 Kbbld, 4.6% lower than Q3 2017 due to scheduled maintenance stoppages in our industrial complexes. These lower processing levels resulted in a 5.8% increase in gasoline production, a 0.2% decrease in diesel production and an increase in the production of other refined products such as LPG and petroleum coal and a decrease in the production of fuel oil, asphalts, lubricants bases and petrochemical gasoline, all in comparison to Q3 2017.

CAPEX

Capital expenditures for the Downstream business segment for Q3 2018 were Ps 3.7 billion, 50.4% higher than Q3 2017.

During Q3 2018, work continued on the blending of gasoline in the Luján de Cuyo refinery to increase the production capacity of premium gasoline, and on increasing diesel blending capacity at La Plata Refinery, in order to increase the production of premium diesel. These activities are expected to conclude by Q4 2018. The foregoing complies with the new specifications for fuels pursuant to Resolution 5/2017 of the Hydrocarbon Resources Secretary, for which the main modifications will become effective in 2019 and in 2022. Additionally, YPF continues with the development of the engineering for the new gasoline and diesel hydrotreatment units to be carried out in the aforementioned refineries.

With respect to refining, logistics and oil product dispatch facilities, work continued with improvements in infrastructure, safety and environmental performance. The construction of the crude oil reception works in the La Plata Industrial Complex is particularly noteworthy since it will allow greater flexibility in processing crude oil. In addition, this will improve the safety conditions of both, the installed facilities and of the associated logistics facilities.

 

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3.3 GAS AND ENERGY

 

Q3 2017				Q2 2018				Q3 2018				Var.% Q3 18 / Q3 17						Jan-Sep 2017				Jan-Sep 2018				Var.% 2018/2017
	1,481				849				2,920				97.2	%		Operating income (Million Ps)			3,064				16,020				422.8	%
	17,178				23,912				31,539				83.6	%		Revenues (Million Ps)			46,672				72,469				55.3	%
	670				196				442				-34.0	%		Capital Expenditures (Million Ps)			2,605				1,017				-61.0	%
	67				64				73				9.0	%		Depreciation (Million Ps)			197				194				-1.5	%

The 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, reported an operating income of Ps 2.9 billion, a 97.2% increase compared to Ps 1.5 billion in Q3 2017.

Separately, our subsidiary Metrogas S.A., recorded an operating profit of Ps 2.5 billion in Q3 2018, which was higher than the operating profit of Ps 0.7 billion in Q3 2017, mainly due to a change in the estimation methodology and determination of purchase prices of natural gas to producers, and in accordance with the latest policies of the National Secretariat of Energy in this regard.

As a consequence of the agreement for the capitalization of YPF Energía Eléctrica, this company is no longer consolidated in Q3 2018, whereas in Q3 2017 it contributed Ps 0.3 billion in operating income to the results of the Group.

 

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3.4 CORPORATE 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 Q3 2018 was a loss of Ps 1.6 billion, compared to a loss of Ps 1.3 billion in Q3 2017. The variation is mainly related to an increase in personnel expenses, higher IT costs, which are mainly dollar denominated, and institutional advertising, coupled whit higher charges for depreciation of fixed assets.

Consolidation adjustments to eliminate results among business segments not transferred to third parties were positive Ps 62 million for Q3 2018. These adjustments were negative Ps 0.7 billion in Q3 2017. In the current quarter the gap between transfer prices between businesses and the replacement cost of the company’s inventories remained constant, compared to a higher gap in Q3 2017. In both cases, the movement of transfer prices reflects changes in market prices, especially of crude oil.

3.5 RELATED COMPANIES

Results from related companies for Q3 2018 were a loss of Ps 1.6 billion, compared to a gain of Ps 0.4 billion for Q3 2017. This variation was due primarily to the negative results obtained by YPF Energía Eléctrica, which was consolidated in the Gas & Power segment during Q3 2017.

4. LIQUIDITY AND SOURCES OF CAPITAL

In Q3 2018, net cash flows provided by operating activities were Ps 32.2 billion, 137.7% higher than Q3 2017. This increase of Ps 18.7 billion was due to an increase in EBITDA of Ps 19.8 billion, and with working capital variations that were offset each other. The generation of funds during Q3 2018 allowed the Company to substantially exceed the amount it required to finance the investments made during the current period.

Net cash flows used in investing activities were Ps 22.4 billion for Q3 2018, 60.7% higher than Q3 2017. Investments in fixed and intangible assets were Ps 23.4 billion in Q3 2018, 44.0% higher than Q3 2017. On the other hand, the holdings of public securities BONAR 2020 and 2021 were partially liquidated, with a cash inflow of Ps 1.0 billion.

As a result of its financing activities, in Q3 2018 the Company had a net decrease in funds of Ps 14.0 billion, compared to a net increase of Ps 2.6 billion in Q3 2017. This difference was generated by a lower net borrowing and refinancing debt maturities of Ps 13.3 billion and by a higher interest payment of Ps 3.3 billion.

The previously explained cash generation, 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 in the portfolio, resulted in a position of cash and cash equivalents of Ps 72.4 billion ₍₁₎ as of September 30, 2018.

Total debt in U.S. dollars was US$9.1 billion, net debt was US$7.3 billion ₍₁₎ with a Net debt/recurring adjusted EBITDA LTM ratio of 1.67x ₍₂₎ .

 

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The average interest rate for debt denominated in Argentine pesos at the end of Q3 2018 was 36.70%, while the average interest rate for debt denominated in U.S. dollars was 7.34%.

 

(1)	Includes investments in financial assets (government securities) of US$351 million at market value

(2)	Net Debt: US$7,349 million/Recurring adjusted EBITDA LTM: US$4,409 million = 1.67x

 

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5. TABLES AND NOTES

Q3 2018 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 2017				Q2 2018				Q3 2018				Var.% Q3 18 / Q3 17						Jan-Sep 2017				Jan-Sep 2018				Var.% 2018 / 2017
	66,034				93,034				121,188				83.5	%		Revenues			183,199				290,045				58.3	%
	(56,108	)			(81,966	)			(95,993	)			71.1	%		Costs			(151,581	)			(241,397	)			59.3	%
	9,926				11,068				25,195				153.8	%		Gross profit			31,618				48,648				53.9	%
	(4,684	)			(5,890	)			(7,113	)			51.9	%		Selling expenses			(12,780	)			(18,184	)			42.3	%
	(2,174	)			(2,951	)			(3,669	)			68.8	%		Administration expenses			(5,965	)			(8,974	)			50.4	%
	(334	)			(464	)			(1,082	)			224.0	%		Exploration expenses			(1,760	)			(1,869	)			6.2	%
	316				(17	)			(646	)			N/A			Other operating results, net			(86	)			12,164				N/A
	3,050				1,746				12,685				315.9	%		Operating income (loss)			11,027				31,785				188.2	%
	432				(1,139	)			(1,573	)			N/A			Income (loss) of interests in companies and joint ventures			546				(2,498	)			N/A
	4,350				46,126				46,980				980.0	%		Finance Income			8,963				101,005				1026.9	%
	(7,297	)			(24,326	)			(22,501	)			208.4	%		Finance Cost			(18,865	)			(55,750	)			195.5	%
	491				1,027				988				101.2	%		Other financial results			1,224				3,157				157.9	%
	(2,456	)			22,827				25,467				N/A			Net financial results			(8,678	)			48,412				N/A
	1,026				23,434				36,579				3465.2	%		Net (loss) profit before income tax			2,895				77,699				2583.9	%
	(780	)			(21,926	)			(23,372	)			2896.4	%		Income tax			(2,185	)			(56,998	)			2508.6	%
	246				1,508				13,207				5268.7	%		Net (loss) profit for the period			710				20,701				2815.6	%
	153				(485	)			4				-97.4	%		Net (loss) profits for noncontrolling interest			380				(562	)			N/A
	93				1,993				13,203				14096.8	%		Net (loss) profit for shareholders of the parent company			330				21,263				6343.3	%
	0.24				5.08				33.50				14047.5	%		Earnings per share, basic and diluted			0.84				54.05				6335.2	%
	5,634				69,295				106,585				1791.8	%		Other comprehensive Income			11,584				189,389				1534.9	%
	5,880				70,803				119,792				1937.3	%		Total comprehensive income for the period			12,294				210,090				1608.9	%
	17,043				24,782				36,821				116.0	%		Adj. EBITDA (*)			50,046				98,095				96.0	%

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

(*) Adjusted EBITDA = Operating income + Depreciation and impairment of properties, 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 2018 figures unaudited)

 

		12/31/2017				09/30/2018
Noncurrent Assets
Intangible assets			9,976				21,385
Properties, plant and equipment			354,443				755,903
Investments in companies and joint ventures			6,045				26,602
Assets held for disposal			8,823				—
Deferred tax assets, net			588				1,920
Other receivables			1,335				4,849
Trade receivables			2,210				33,398
Total Non-current assets			383,420				844,057
Current Assets
Inventories			27,149				63,483
Contract assets			142				458
Other receivables			12,684				20,405
Trade receivables			40,649				67,748
Investment in financial assets			12,936				14,462
Cash and equivalents			28,738				57,915
Total current assets			122,298				224,471
Total assets			505,718				1,068,528
Shareholders’ equity
Shareholders’ contributions			10,402				10,430
Reserves, other comprehensive income and retained earnings			141,893				352,247
Noncontrolling interest			238				(324	)
Total Shareholders’ equity			152,533				362,353
Noncurrent Liabilities
Provisions			54,734				119,226
Liabilities associated with assets held for disposal			4,193				—
Deferred tax liabilities, net			37,645				95,000
Contract liabilities			1,470				2,371
Other taxes payable			220				2,765
Loans			151,727				294,947
Other liabilities			277				579
Accounts payable			185				214
Total Noncurrent Liabilities			250,451				515,102
Current Liabilities
Provisions			2,442				4,021
Income tax payable			191				376
Contract liabilities			1,460				3,529
Other taxes payable			6,879				11,670
Salaries and social security			4,132				4,612
Loans			39,336				79,855
Other liabilities			2,383				783
Accounts payable			45,911				86,227
Total Current Liabilities			102,734				191,073
Total Liabilities			353,185				706,175
Total Liabilities and Shareholders’ Equity			505,718				1,068,528

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 2017				Q2 2018				Q3 2018						Jan-Sep 2017				Jan-Sep 2018
												Operating activities
	246				1,508				13,207			Net income (loss)			710				20,701
	(432	)			1,139				1,573			Income (loss) of interests in companies and joint ventures			(546	)			2,498
	13,718				22,689				23,251			Depreciation of property, plant and equipment			37,454				64,654
	222				314				450			Amortization of intangible assets			605				1,011
	1,034				1,548				2,735			Losses of property, plant and equipment and intangible assets and consumption of materials			3,218				5,749
	780				21,926				23,372			Income tax charge			2,185				56,998
	135				1,969				2,415			Net increase in provisions			2,316				5,977
	1,904				(22,295	)			(25,730	)		Interest, exchange differences and other			7,249				(47,988	)
	46				73				80			Stock compensation plans			116				206
	—				—				(270	)		Accrued insurance			—				(270	)
	—				—				—			Results due to revaluation of companies			—				(11,980	)
												Changes in assets and liabilities:
	(8,952	)			(7,677	)			(14,041	)		Trade receivables			(7,827	)			(25,948	)
	(766	)			1,489				(958	)		Other receivables			2,131				(4,304	)
	149				910				(5,144	)		Inventories			(1,148	)			(4,172	)
	2,598				3,629				9,570			Accounts payable			2,587				16,440
	752				753				1,506			Other Taxes payable			2,196				4,447
	706				277				926			Salaries and Social Security			293				340
	452				457				251			Other liabilities			(480	)			(1,222	)
	(315	)			(619	)			(775	)		Decrease in provisions included in liabilities for payments / utilization			(981	)			(1,777	)
	(183	)			(42	)			(162	)		Contract Assets			(183	)			(316	)
	1,723				80				(126	)		Contract Liabilities			1,723				825
	17				22				348			Dividends received			328				474
	—				—				476			Insurance charge for loss of profit			—				476
	(282	)			(540	)			(744	)		Income tax payments			(761	)			(1,573	)
	13,552				27,610				32,210			Net cash flow from operating activities			51,185				81,246
												Investing activities
	(16,273	)			(18,105	)			(23,426	)		Acquisitions of property, plant and equipment and Intangible assets			(43,951	)			(57,325	)
	(92	)			(4	)			—			Contributions and acquisitions of interests in companies and joint ventures			(429	)			(284	)
	2,404				452				997			Collection for sale of financial assets			2,404				6,402
	—				293				—			Interest received from financial assets			511				293
	(13,961	)			(17,364	)			(22,429	)		Net cash flow from investing activities			(41,465	)			(50,914	)
												Financing activities
	(9,797	)			(5,093	)			(18,267	)		Payment of loans			(24,877	)			(32,795	)
	(4,948	)			(4,964	)			(8,248	)		Payment of interests			(13,525	)			(18,611	)
	17,343				7,481				12,530			Proceeds from loans			33,403				28,677
	—				(120	)			—			Acquisition of own shares			(100	)			(120	)
	2,598				(2,696	)			(13,985	)		Net cash flow from financing activities			(5,099	)			(22,849	)
	237				5,190				15,868			Effect of changes in exchange rates on cash and equivalents			503				21,694
	2,426				12,740				11,664			Increase (decrease) in Cash and Equivalents			5,124				29,177
	13,455				33,511				—			Cash and equivalents at the beginning of the period			10,757				28,738
	15,881				46,251				11,664			Cash and equivalents at the end of the period			15,881				57,915
	2,426				12,740				11,664			Increase (decrease) in Cash and Equivalents			5,124				29,177
												COMPONENTS OF CASH AND EQUIVALENT AT THE END OF THE PERIOD
	6,639				5,318				9,215			Cash			6,639				9,215
	9,242				40,933				48,700			Other Financial Assets			9,242				48,700
	15,881				46,251				57,915			TOTAL CASH AND EQUIVALENTS AT THE END OF THE PERIOD			15,881				57,915

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

 

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5.4 CONSOLIDATED BUSINESS SEGMENT INFORMATION

(Unaudited, figures expressed in millions of pesos)

 

Q3 2018		Upstream				Gas & Power				Downstream				Corporate and Other				Consolidation Adjustments				Total
Revenues			322				29,051				90,734				2,464				(1,383	)			121,188
Revenues from intersegment sales			63,144				2,488				486				3,096				(69,214	)			—
Revenues			63,466				31,539				91,220				5,560				(70,597	)			121,188
Operating Income (loss)			12,215				2,920				(908	)			(1,604	)			62				12,685
Investments in companies			—				(1,866	)			293				—				—				(1,573	)
Depreciation of property, plant and equipment			18,946				73				3,465				767				—				23,251
Impairment of property, plant and equipment and intangible assets			—				—				—				—				—				—
Acquisitions of fixed assets			22,547				442				3,660				583				—				27,232
Assets			532,413				106,252				343,644				96,701				(10,482	)			1,068,528

 

Q3 2017		Upstream				Gas & Power				Downstream				Corporate and 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

 

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5.5 MAIN FINANCIAL MAGNITUDES IN U.S. DOLLARS

(Unaudited figures)

 

Million USD		2017 Q3				2018 Q2				2018 Q3				Var Q3 18 / Q3 17				2017 Jan-Sep				2018 Jan-Sep				Var 2018 / 2017
INCOME STATEMENT
Revenues			3,831				3,963				3,784				-1.2	%			11,315				11,605				2.6	%
Costs of sales			-3,255				-3,491				-2,998				-7.9	%			-9,354				-9,717				3.9	%
Gross profit			576				471				787				36.6	%			1,962				1,888				-3.7	%
Other operating expenses, net			-399				-397				-391				-2.1	%			-1,275				-535				-58.0	%
Operating income			177				74				396				123.8	%			687				1,353				97.1	%
Depreciation and impairment of property, plant & equipment and intangible assets			796				966				726				-8.8	%			2,312				2,645				14.4	%
Amortization of intangible assets			13				13				14				9.1	%			37				40				7.1	%
Unproductive exploratory drillings			3				1				14				341.7	%			61				24				-60.7	%
Adj. EBITDA			989				1,056				1,150				16.3	%			3,097				4,062				31.2	%
Recurring Adj. EBITDA			989				1,056				1,150				16.3	%			3,097				3,453				11.5	%
UPSTREAM
Revenues			1,737				1,973				1,982				14.1	%			5,211				5,924				13.7	%
Operating income			21				122				381				1726.1	%			22				613				2682.1	%
Depreciation & amortization			667				840				592				-11.1	%			1,947				2,262				16.2	%
Capital expenditures			725				686				704				-2.9	%			1,961				2,053				4.7	%
Adj. EBITDA			691				963				987				43.0	%			2,030				2,899				42.8	%
DOWNSTREAM
Revenues			2,892				2,993				2,849				-1.5	%			8,628				8,912				3.3	%
Operating income			186				15				-28				N/A				662				191				-71.2	%
Depreciation & amortization			117				122				119				11.9	%			340				357				5.0	%
Capital expenditures			141				114				114				-19.1	%			346				292				-15.7	%
Adj. EBITDA			303				137				91				-68.9	%			1,002				548				-45.3	%
GAS & ENERGY
Revenues			997				1,019				985				-1.2	%			2,881				2,869				-0.4	%
Operating income			86				36				91				6.1	%			187				751				301.4	%
Depreciation & amortization			4				3				3				-21.0	%			13				9				-33.1	%
Capital expenditures			39				8				14				-64.5	%			162				41				-74.5	%
Adj. EBITDA			90				39				94				4.9	%			200				760				279.1	%
CORPORATE AND OTHER
Operating income			-74				-65				-50				-32.2	%			-172				-166				-3.9	%
Capital expenditures			17				16				18				4.6	%			48				44				-7.1	%
CONSOLIDATION ADJUSTMENTS
Operating income			-42				-34				2				N/A				-12				-35				185.3	%
Average exchange rate of period			17.23				23.48				32.02								16.18				25.05
Exchange rate end of period			17.26				28.80				41.15								17.26				41.15

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

 

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5.6 MAIN PHYSICAL MAGNITUDES

(Unaudited figures)

 

				2017																				2018
		Unit		Q1				Q2				Q3				Q4				Cum. 2017				Q1				Q2				Q3				Cum. 2018
Production
Crude oil production		Kbbl			21,058				19,867				20,904				21,219				83,048				20,483				20,591				20,933				62,007
NGL production		Kbbl			4,923				4,680				4,469				4,309				18,381				4,228				3,781				2,477				10,487
Gas production		Mm3			4,076				4,056				4,057				3,893				16,082				3,935				4,004				4,018				11,957
Total production		Kboe			51,618				50,055				50,891				50,012				202,576				49,460				49,554				48,679				147,693
Henry Hub		USD/Mbtu			3.32				3.18				3.00				2.93				3.11				3.00				2.80				2.90				2.90
Brent		USD/Bbl			53.68				49.67				52.11				61.53				54.25				66.81				74.50				75.22				72.18
Sales
Sales of petroleum products
Domestic market
Gasoline		Km3			1,297				1,220				1,284				1,358				5,159				1,373				1,288				1,321				3,982
Diesel		Km3			1,792				1,954				1,981				2,025				7,752				1,870				2,023				2,154				6,047
Jet fuel and kerosene		Km3			134				117				140				143				534				135				125				146				406
Fuel Oil		Km3			220				264				121				37				642				7				10				10				27
LPG		Km3			152				241				189				159				741				146				185				196				527
Others (*)		Km3			357				377				406				408				1,548				381				416				323				1,120
Total domestic market		Km3			3,952				4,173				4,121				4,130				16,376				3,912				4,047				4,150				12,109
Export market
Petrochemical naphtha		Km3			57				23				46				58				184				24				44				0				68
Jet fuel and kerosene		Km3			135				123				139				142				539				141				136				144				421
LPG		Km3			115				39				70				98				322				194				91				41				326
Bunker (Diesel and Fuel Oil)		Km3			83				74				102				116				375				101				72				65				238
Others (*)		Km3			28				29				4				53				114				52				50				93				195
Total export market		Km3			418				288				361				467				1,534				512				393				343				1,248
Total sales of petroleum products		Km3			4,370				4,461				4,482				4,597				17,910				4,424				4,440				4,493				13,357
Sales of petrochemical products
Domestic market
Fertilizers		Ktn			35				39				139				111				324				38				85				117				240
Methanol		Ktn			57				84				73				99				313				69				93				64				226
Others		Ktn			116				130				125				129				500				138				115				139				392
Total domestic market		Ktn			208				253				337				339				1,137				245				293				320				858
Export market
Methanol		Ktn			1				2				1				2				6				24				75				31				130
Others		Ktn			42				51				53				55				201				36				63				42				141
Total export market		Ktn			43				53				54				57				207				60				138				73				271
Total sales of petrochemical products		Ktn			251				306				391				396				1,344				305				431				393				1,129
Sales of other products
Grain, flours and oils
Domestic market		Ktn			21				37				21				18				97				30				23				92				145
Export market		Ktn			159				291				331				253				1,034				169				236				177				582
Total Grain, flours and oils		Ktn			180				328				352				271				1,131				199				259				269				727
Main products imported
Gasolines and Jet Fuel		Km3			3				40				13				98				154				114				59				49				222
Diesel		Km3			152				230				77				85				544				111				161				355				627

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

 

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		Consolidated Results Q3 2018

 

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, 2017 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 9, 2018				By:		/s/ Diego Celaá
				Name:		Diego Celaá
				Title:		Market Relations Officer