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 May, 2022

Commission File Number: 001-12102

YPF Sociedad Anónima

(Exact name of registrant as specified in its charter)

Macacha Güemes 515

C1106BKK Buenos Aires, Argentina

(Address of principal executive office)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

Form 20-F  ☒                Form 40-F  ☐

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

Yes  ☐                No  ☒

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

Yes  ☐                No  ☒


Table of Contents

 

 

LOGO

YPF SOCIEDAD ANONIMA

CONDENSED INTERIM CONSOLIDATED

FINANCIAL STATEMENTS AS OF MARCH 31, 2022

AND COMPARATIVE INFORMATION (UNAUDITED)


Table of Contents

English translation of the condensed interim consolidated financial statements originally filed in Spanish with the CNV.

In case of discrepancy, the condensed interim consolidated financial statements filed with the CNV prevail over this translation.

 

YPF SOCIEDAD ANONIMA

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2022 AND COMPARATIVE INFORMATION (UNAUDITED)

   LOGO

 

CONTENT

 

  Note  

  

Description

   Page
   Glossary of terms    1
   Legal Information    2
   Condensed interim consolidated statements of financial position    3
   Condensed interim consolidated statements of comprehensive income    4
   Condensed interim consolidated statements of changes in shareholders’ equity    5
   Condensed interim consolidated statements of cash flow    7
   Notes to the condensed interim consolidated financial statements:   
1   

General information, structure and organization of the business of the Group

   8
2   

Basis of preparation of the consolidated financial statements

   9
3   

Seasonality of operations

   10
4   

Acquisitions and dispositions

   10
5   

Financial risk management

   10
6   

Segment information

   11
7   

Financial instruments by category

   13
8   

Intangible assets

   13
9   

Property, plant and equipment

   14
10   

Right-of-use assets

   17
11   

Investments in associates and joint ventures

   17
12   

Inventories

   19
13   

Other receivables

   19
14   

Trade receivables

   19
15   

Investment in financial assets

   20
16   

Cash and cash equivalents

   20
17   

Provisions

   20
18   

Income Tax

   21
19   

Taxes payable

   22
20   

Salaries and social security

   22
21   

Lease liabilities

   22
22   

Loans

   23
23   

Other liabilities

   25
24   

Accounts payable

   25
25   

Revenues

   25
26   

Costs

   27
27   

Expenses by nature

   28
28   

Other net operating results

   28
29   

Net financial results

   29
30   

Investments in joint operations

   29
31   

Shareholders’ equity

   29
32   

Earnings per share

   30
33   

Issues related to Maxus Entities

   30
34   

Contingent assets and contingent liabilities

   30
35   

Contractual commitments

   31
36   

Main regulations

   31
37   

Balances and transactions with related parties

   33
38   

Employee benefit plans and similar obligations

   36
39   

Assets and liabilities in currencies other than the Peso

   37
40   

Subsequent events

   38


Table of Contents

 

1

 

English translation of the condensed interim consolidated financial statements originally filed in Spanish with the CNV.

In case of discrepancy, the condensed interim consolidated financial statements filed with the CNV prevail over this translation.

 

YPF SOCIEDAD ANONIMA

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2022 AND COMPARATIVE INFORMATION (UNAUDITED)

   LOGO

 

GLOSSARY OF TERMS

 

Term

  

Definition

ADR

  

American Depositary Receipt

ADS

  

American Depositary Share

AESA

  

Subsidiary A-Evangelista S.A.

AFIP

  

Argentine Tax Authority (Administración Federal de Ingresos Públicos)

ANSES

  

National Administration of Social Security (Administración Nacional de la Seguridad Social)

ASC

  

Accounting Standards Codification

Associate

  

Company over which YPF has significant influence as provided for in IAS 28

BCRA

  

Central Bank of the Argentine Republic (Banco Central de la República Argentina)

BNA

  

Argentine Nation Bank (Banco de la Nación Argentina)

BO

  

Official Gazette of the Argentine Republic (Boletín Oficial de la República Argentina)

BONAR

  

Argentine Treasury Bonds (Bonos de la Nación Argentina)

CAMMESA

  

Compañía Administradora del Mercado Mayorista Eléctrico S.A.

CDS

  

Associate Central Dock Sud S.A.

CFO

  

Chief Financial Officer

CGU

  

Cash-Generating Units

CNDC

  

Argentine Antitrust Authority (Comisión Nacional de Defensa de la Competencia)

CNV

  

Argentine Securities Commission (Comisión Nacional de Valores)

CPI

  

Consumer Price Index

CSJN

  

Argentine Supreme Court of Justice (Corte Suprema de Justicia de la Nación Argentina)

CT Barragán

  

Joint Venture CT Barragán S.A.

Dollar

  

United States Dollar

Eleran

  

Subsidiary Eleran Inversiones 2011 S.A.U.

ENARGAS

  

Argentine Gas Regulator (Ente Nacional Regulador del Gas)

FACPCE

  

Argentine Federation of Professional Councils in Economic Sciences (Federación Argentina de Consejos Profesionales de Ciencias Económicas)

FASB

  

Financial Accounting Standards Board

FOB

  

Free on board

Group

  

YPF and its subsidiaries

GPA

  

Associate Gasoducto del Pacífico (Argentina) S.A.

IAS

  

International Accounting Standard

IASB

  

International Accounting Standards Board

IDS

  

Associate Inversora Dock Sud S.A.

IEASA (formerly ENARSA)

  

Integración Energética Argentina S.A. (formerly Energía Argentina S.A.)

IFRIC

  

International Financial Reporting Interpretations Committee

IFRS

  

International Financial Reporting Standard

IIBB

  

Turnover tax (Impuesto a los ingresos brutos)

INDEC

  

National Institute of Statistics and Census (Instituto Nacional de Estadística y Censos)

IWPI

  

Internal Wholesale Price Index

Joint venture

  

Company jointly owned by YPF as provided for in IFRS 11

JO

  

Joint operation

LGS

  

Argentine General Corporations Law (Ley General de Sociedades de la República Argentina) No. 19,550 (T.O. 1984), as amended

LNG

  

Liquified natural gas

LPG

  

Liquefied Petroleum Gas

MEGA

  

Joint Venture Company Mega S.A.

Metroenergía

  

Subsidiary Metroenergía S.A.

Metrogas

  

Subsidiary Metrogas S.A.

MINEM

  

Former Ministry of Energy and Mining (Ministerio de Energía y Minería)

MBtu

  

Million British thermal units

NO

  

Negotiable Obligations

Oiltanking

  

Associate Oiltanking Ebytem S.A.

Oldelval

  

Associate Oleoductos del Valle S.A.

OLCLP

  

Joint Venture Oleoducto Loma Campana – Lago Pellegrini S.A.

OPESSA

  

Subsidiary Operadora de Estaciones de Servicios S.A.

OTA

  

Associate OleoductoTrasandino (Argentina) S.A.

OTC

  

Associate OleoductoTrasandino (Chile) S.A.

PEN

  

National Executive Power (Poder Ejecutivo Nacional)

Peso

  

Argentine Peso

PIST

  

Transportation system entry point (Punto de ingreso al sistema de transporte)

Profertil

  

Joint Venture Profertil S.A.

Refinor

  

Joint Venture Refinería del Norte S.A.

ROD

  

Record of decision

RTI

  

Integral Tariff Review (Revisión Tarifaria Integral)

RTT

  

Transitional Tariff Regime (Régimen Tarifario de Transición)

SE

  

Secretariat of Energy (Secretaría de Energía)

SEC

  

U.S. Securities and Exchange Commission

SEE

  

Secretariat of Electric Energy (Secretaría de Energía Eléctrica)

SGE

  

Government Secretariat of Energy (Secretaría de Gobierno de Energía)

SRH

  

Hydrocarbon Resources Secretariat (Secretaría de Recursos Hidrocarburíferos)

SSHyC

  

Under-Secretariat of Hydrocarbons and Fuels (Subsecretaría de Hidrocarburos y Combustibles)

Subsidiary

  

Company controlled by YPF in accordance with the provisions of IFRS 10.

Termap

  

Associate Terminales Marítimas Patagónicas S.A.

TFN

  

National Fiscal Tribunal (Tribunal Fiscal de la Nación)

UNG

  

Unaccounted Natural Gas

US$

  

United States Dollar

US$/Bbl

  

Dollar per barrel

VAT

  

Value Added Tax

Y-GEN I

  

Joint venture Y-GEN Eléctrica S.A.U.

Y-GEN II

  

Joint venture Y-GEN Eléctrica II S.A.U.

YPF Brasil

  

Subsidiary YPF Brasil Comercio Derivado de Petróleo Ltda.

YPF Chile

  

Subsidiary YPF Chile S.A.

YPF EE

  

Joint venture YPF Energía Eléctrica S.A.

YPF Gas

  

Associate YPF Gas S.A.

YPF Holdings

  

Subsidiary YPF Holdings, Inc.

YPF International

  

Subsidiary YPF International S.A.

YPF or the Company

  

YPF S.A.

YPF Perú

  

Subsidiary YPF E&P Perú S.A.C.

YPF Ventures

  

Subsidiary YPF Ventures S.A.U.

YTEC

  

Subsidiary YPF Tecnología S.A.

WEM

  

Wholesale Electricity Market


Table of Contents

 

2

 

English translation of the condensed interim consolidated financial statements originally filed in Spanish with the CNV.

In case of discrepancy, the condensed interim consolidated financial statements filed with the CNV prevail over this translation.

 

YPF SOCIEDAD ANONIMA

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2022 AND COMPARATIVE INFORMATION (UNAUDITED)

   LOGO

 

LEGAL INFORMATION

Legal address

Macacha Güemes 515 - Ciudad Autónoma de Buenos Aires, Argentina.

Fiscal year number 46

Beginning on January 1, 2022.

Principal business of the Company

The Company’s purpose shall be to perform, on its own, through third parties or in association with third parties, the study, exploration, development and production of oil, natural gas and other minerals and refining, marketing and distribution of oil and petroleum products and direct and indirect petroleum derivatives, including petrochemicals, chemicals, including those derived from hydrocarbons, and non-fossil fuels, biofuels and their components, as well as production of electric power from hydrocarbons, through which it may manufacture, use, purchase, sell, exchange, import or export them. It shall also be the Company’s purpose to render, directly, through a subsidiary or in association with third parties, telecommunications services in all forms and modalities authorized by the legislation in force after applying for the relevant licenses as required by the regulatory framework, as well as the production, industrialization, processing, commercialization, conditioning, transportation and stockpiling of grains and products derived from grains, as well as any other activity complementary to its industrial and commercial business or any activity which may be necessary to attain its objective. In order to fulfill these objectives, the Company may set up, become associated with or have an interest in any public or private entity domiciled in Argentina or abroad, within the limits set forth in the Bylaws.

Filing with the Public Registry

Bylaws filed on February 5, 1991 under No. 404, Book 108, Volume A, Sociedades Anónimas, with the Public Registry of Buenos Aires City, in charge of the Argentine Registrar of Companies (Inspección General de Justicia); and Bylaws in substitution of previous Bylaws, filed on June 15, 1993, under No. 5,109, Book 113, Volume A, Sociedades Anónimas, with the above mentioned Registry.

Duration of the Company

Through June 15, 2093.

Last amendment to the Bylaws

April 30, 2021 registered with the Argentine Registrar of Companies (Inspección General de Justicia) on August 5, 2021 under No. 12,049, Book 103 of Corporations.

Capital structure

393,312,793 shares of common stock, $10 par value and 1 vote per share.

Subscribed, paid-in and authorized for stock exchange listing (in Pesos)

3,933,127,930

PABLO GERARDO GONZÁLEZ

President                    


Table of Contents

 

3

 

English translation of the financial statements originally filed in Spanish with the CNV.

In case of discrepancy, the financial statements filed with the CNV prevail over this translation.

 

YPF SOCIEDAD ANONIMA

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

AS OF MARCH 31, 2022 AND DECEMBER 31, 2021 (UNAUDITED)

(Amounts expressed in millions of Pesos)

  LOGO

 

     Notes    March 31,
2022
     December 31,
2021
 

ASSETS

        

Non-current assets

        

Intangible assets

   8      46,181        43,014  

Property, plant and equipment

   9      1,787,255        1,642,259  

Right-of-use assets

   10      54,984        53,260  

Investments in associates and joint ventures

   11      183,092        156,925  

Deferred income tax assets, net

   18      1,625        1,921  

Other receivables

   13      5,995        19,549  

Trade receivables

   14      4,706        4,363  

Investment in financial assets

   15      3,865        2,534  
     

 

 

    

 

 

 

Total non-current assets

        2,087,703        1,923,825  
     

 

 

    

 

 

 

Current assets

        

Assets held for disposal

        111        103  

Inventories

   12      167,500        153,927  

Contract assets

   25      1,765        1,360  

Other receivables

   13      56,195        63,259  

Trade receivables

   14      154,630        133,904  

Investment in financial assets

   15      59,182        51,012  

Cash and cash equivalents

   16      88,210        62,678  
     

 

 

    

 

 

 

Total current assets

        527,593        466,243  
     

 

 

    

 

 

 

TOTAL ASSETS

        2,615,296        2,390,068  
     

 

 

    

 

 

 

SHAREHOLDERS’ EQUITY

        

Shareholders’ contributions

        10,555        10,504  

Reserves, other comprehensive income and retained earnings

        930,636        829,388  
     

 

 

    

 

 

 

Shareholders’ equity attributable to shareholders of the parent company

        941,191        839,892  
     

 

 

    

 

 

 

Non-controlling interest

        9,344        8,226  
     

 

 

    

 

 

 

TOTAL SHAREHOLDERS’ EQUITY

                950,535                848,118  
     

 

 

    

 

 

 

LIABILITIES

        

Non-current liabilities

        

Provisions

   17      277,382        258,478  

Deferred income tax liabilities, net

   18      184,670        185,179  

Income tax liability

   18      5,398        3,026  

Taxes payable

   19      203        201  

Salaries and social security

   20      2,299        3,262  

Lease liabilities

   21      26,708        28,335  

Loans

   22      745,187        670,535  

Other liabilities

   23      934        968  

Accounts payable

   24      923        888  
     

 

 

    

 

 

 

Total non-current liabilities

        1,243,704        1,150,872  
     

 

 

    

 

 

 

Current liabilities

        

Provisions

   17      19,263        19,297  

Contract liabilities

   25      31,237        13,329  

Income tax liability

   18      12,189        1,336  

Taxes payable

   19      34,653        14,671  

Salaries and social security

   20      21,972        23,459  

Lease liabilities

   21      30,960        27,287  

Loans

   22      57,952        86,680  

Other liabilities

   23      1,753        3,468  

Accounts payable

   24      211,078        201,551  
     

 

 

    

 

 

 

Total current liabilities

        421,057        391,078  
     

 

 

    

 

 

 

TOTAL LIABILITIES

        1,664,761        1,541,950  
     

 

 

    

 

 

 

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

        2,615,296        2,390,068  
     

 

 

    

 

 

 

Accompanying notes are an integral part of these condensed interim consolidated financial statements.

PABLO GERARDO GONZÁLEZ

President                


Table of Contents

 

4

 

English translation of the condensed interim consolidated financial statements originally filed in Spanish with the CNV.

In case of discrepancy, the condensed interim consolidated financial statements filed with the CNV prevail over this translation.

 

YPF SOCIEDAD ANONIMA

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE THREE-MONTH PERIOD ENDED MARCH 31, 2022 AND 2021 (UNAUDITED)

(Amounts expressed in millions of Pesos, except per share information, expressed in Pesos)

  LOGO

 

            For the three-month period ended
March 31,
 
     Notes      2022      2021  

Net income

        

Revenues

     25        388,169        234,890  

Costs

     26        (303,142)        (198,531)  
     

 

 

    

 

 

 

Gross profit

        85,027        36,359  
     

 

 

    

 

 

 

Selling expenses

     27        (27,224)        (19,945)  

Administrative expenses

     27        (14,774)        (9,125)  

Exploration expenses

     27        (1,123)        (159)  

Other net operating results

     28        (1,457)        (276)  
     

 

 

    

 

 

 

Operating profit

        40,449        6,854  
     

 

 

    

 

 

 

Income from equity interests in associates and joint ventures

     11        12,229        5,116  

Financial income

     29        32,110        22,347  

Financial loss

     29        (43,037)        (32,323)  

Other financial results

     29        6,332        5,685  
     

 

 

    

 

 

 

Net financial results

     29        (4,595)        (4,291)  
     

 

 

    

 

 

 

    

        
     

 

 

    

 

 

 

Net profit before income tax

        48,083        7,679  
     

 

 

    

 

 

 

Income tax

     18        (21,666)        (9,926)  
     

 

 

    

 

 

 

Net profit / (loss) for the period

        26,417        (2,247)  
     

 

 

    

 

 

 

Other comprehensive income

        

Items that may be reclassified subsequently to profit or loss:

        

Translation differences from subsidiaries, associates and joint ventures

        (3,835)        (3,165)  

Result from net monetary position in subsidiaries, associates and joint ventures (1)

        8,378        4,703  

Items that may not be reclassified subsequently to profit or loss:

        

Translation differences from YPF

        71,406        64,120  
     

 

 

    

 

 

 

Other comprehensive income for the period

        75,949        65,658  
     

 

 

    

 

 

 

    

        
     

 

 

    

 

 

 

Total comprehensive income for the period

                102,366                63,411  
     

 

 

    

 

 

 

Net profit / (loss) for the period attributable to:

        

Shareholders of the parent company

        26,603        (2,066)  

Non-controlling interest

        (186)        (181)  

Other comprehensive income for the period attributable to:

        

Shareholders of the parent company

        74,645        64,870  

Non-controlling interest

        1,304        788  

Total comprehensive income for the period attributable to:

        

Shareholders of the parent company

        101,248        62,804  

Non-controlling interest

        1,118        607  

Earnings per share attributable to shareholders of the parent company:

        

Basic and diluted

     32        67.69        (5.26)  

 

(1)

Result associated to subsidiaries, associates and joint ventures with the Peso as functional currency. See accounting policy in Note 2.b.1) to the annual consolidated financial statements.

Accompanying notes are an integral part of these condensed interim consolidated financial statements.


Table of Contents

 

5

 

English translation of the condensed interim consolidated financial statements originally filed in Spanish with the CNV.

In case of discrepancy, the condensed interim consolidated financial statements filed with the CNV prevail over this translation.

 

YPF SOCIEDAD ANONIMA

 

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

FOR THE THREE-MONTH PERIOD ENDED MARCH 31, 2022 AND 2021 (UNAUDITED)

(Amounts expressed in millions of Pesos)

   LOGO

 

    For the three-month period ended March 31, 2022  
    Shareholders’ contributions  
    Subscribed
capital
    Adjustment
to
contributions
    Treasury
shares
    Adjustment
to treasury
shares
    Share-based
benefit plans
    Acquisition
cost of
treasury
shares
    Share trading
premium
    Issuance
premiums
    Total  

Balance at the beginning of the fiscal year

    3,931         6,095         2         6         372         (493)         (49)         640         10,504    

Accrual of share-based benefit plans (3)

    -         -         -         -         53         -         -         -         53    

Settlement of share-based benefit plans (2)

    -         -         -         -         (9)         1         6         -         (2)    

Other comprehensive income

    -         -         -         -         -         -         -         -         -    

Net profit / (loss)

    -         -         -         -         -         -         -         -         -    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance at the end of the period

    3,931         6,095         2         6         416         (492)         (43)         640         10,555    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
    Reserves                 Equity attributable to        
    Legal     Future
dividends
    Investments     Purchase of
treasury
shares
    Other
comprehensive
income
    Retained
earnings
    Shareholders
of the parent
company
    Non-
controlling
interest
    Total
shareholders’
equity
 

Balance at the beginning of the fiscal year

    2,007         -         -         -         883,589         (56,208)         839,892         8,226         848,118    

Accrual of share-based benefit plans (3)

    -         -         -         -         -         -         53         -         53    

Settlement of share-based benefit plans (2)

    -         -         -         -         -         -         (2)         -         (2)    

Other comprehensive income

    -         -         -         -         74,645         -         74,645         1,304         75,949    

Net profit / (loss)

    -         -         -         -         -         26,603         26,603         (186)         26,417    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance at the end of the period

    2,007         -         -         -         958,234    (1)      (29,605)         941,191         9,344         950,535    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

  (1)

Includes 958,327 corresponding to the effect of the translation of the financial statements of YPF and, (50,069) corresponding to the effect of the translation of the financial statements of investments in subsidiaries, associates and joint ventures with functional currencies other than the U.S. dollar and 49,976 corresponding to the recognition of the result for the net monetary position of subsidiaries, associates and joint ventures with the Peso as functional currency, as detailed in Note 2.b.1) to the annual consolidated financial statements.

  (2)

Net of employees’ income tax withholdings related to the share-based benefit plans.

  (3)

See Note 38.

 

PABLO GERARDO GONZÁLEZ

President


Table of Contents

 

6

 

English translation of the condensed interim consolidated financial statements originally filed in Spanish with the CNV.

In case of discrepancy, the condensed interim consolidated financial statements filed with the CNV prevail over this translation.

 

YPF SOCIEDAD ANONIMA

 

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

FOR THE THREE-MONTH PERIOD ENDED MARCH 31, 2022 AND 2021 (UNAUDITED) (cont.)

(Amounts expressed in millions of Pesos)

   LOGO

 

     For the three-month period ended March 31, 2021  
     Shareholders’ contributions  
     Subscribed
capital
     Adjustment
to
contributions
     Treasury
shares
     Adjustment
to treasury
shares
     Share-based
benefit plans
    Acquisition
cost of
treasury
shares
     Share
trading
premium
     Issuance
premiums
     Total  

Balance at the beginning of the fiscal year

     3,926          6,088          7          13          (144)         502          (647)          640          10,385    

Accrual of share-based benefit plans (3)

     -          -          -          -          119         -          -          -          119    

Settlement of share-based benefit plans (2)

     -          -          -          -          (27)         (4)          (6)          -          (37)    

Other comprehensive income

     -          -          -          -          -         -          -          -          -    

Net loss

     -          -          -          -          -         -          -          -          -    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Balance at the end of the period

             3,926                  6,088                      7                      13                      (52)                     498                      (653)                      640                  10,467    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 
     Reserves                   Equity attributable to         
     Legal      Future
dividends
     Investments      Purchase of
treasury
shares
     Other
comprehensive
income
    Retained
earnings
     Shareholders
of the parent
company
     Non-
controlling
interest
     Total
shareholders’
equity
 

Balance at the beginning of the fiscal year

     2,007          3,700          8,934          550          721,303         (69,649)          677,230          6,165          683,395    

Accrual of share-based benefit plans (3)

     -          -          -          -          -         -          119          -          119    

Settlement of share-based benefit plans (2)

     -          -          -          -          -         -          (37)          -          (37)    

Other comprehensive income

     -          -          -          -          64,870         -          64,870          788          65,658    

Net loss

     -          -          -          -          -         (2,066)          (2,066)          (181)          (2,247)    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Balance at the end of the period

     2,007                  3,700                  8,934          550                  786,173   (1)              (71,715)          740,116          6,772          746,888    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

 

  (1)

Includes 797,612 corresponding to the effect of the translation of the financial statements of YPF and, (41,857) corresponding to the effect of the translation of the financial statements of investments in subsidiaries, associates and joint ventures with functional currencies other than the U.S. dollar and 30,418 corresponding to the recognition of the result for the net monetary position of subsidiaries, associates and joint ventures with the Peso as functional currency, as detailed in Note 2.b.1) to the annual consolidated financial statements.

  (2)

Net of employees’ income tax withholdings related to the share-based benefit plans.

  (3)

See Note 38.

Accompanying notes are an integral part of these condensed interim consolidated financial statements.

 

PABLO GERARDO GONZÁLEZ

President


Table of Contents

 

7

 

English translation of the condensed interim consolidated financial statements originally filed in Spanish with the CNV.

In case of discrepancy, the condensed interim consolidated financial statements filed with the CNV prevail over this translation.

 

YPF SOCIEDAD ANONIMA

 

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOW

FOR THE THREE-MONTH PERIOD ENDED MARCH 31, 2022 AND 2021 (UNAUDITED)

(Amounts expressed in millions of Pesos)

   LOGO

 

     For the three-month period ended
March 31,
 
     2022     2021  

Cash flows from operating activities

    

Net loss

     26,417         (2,247)    

Adjustments to reconcile net loss to cash flows provided by operating activities:

    

Income from equity interests in associates and joint ventures

     (12,229)         (5,116)    

Depreciation of property, plant and equipment

     62,809         60,875    

Depreciation of right-of-use assets

     5,391         4,214    

Amortization of intangible assets

     1,182         1,042    

Retirement of property, plant and equipment and intangible assets and consumption of materials

     9,103         7,369    

Charge on income tax

     21,666         9,926    

Net increase in provisions

     7,653         5,723    

Exchange differences, interest and other

     765         3,814    

Share-based benefit plans

     53         119    

Result from debt exchange

     -         (1,855)    

Changes in assets and liabilities:

    

Trade receivables

     (12,073)         1,816    

Other receivables

     16,647         (8,263)    

Inventories

     (285)         (2,247)    

Accounts payable

     (1,942)         16,880    

Taxes payables

     18,936         8,067    

Salaries and social security

     (3,554)         (2,449)    

Other liabilities

     (2,024)         (2,377)    

Decrease in provisions included in liabilities due to payment/use

     (3,210)         (1,821)    

Contract assets

     (416)         480    

Contract liabilities

     17,882         (611)    

Dividends received

     -         28    

Proceeds from collection of profit loss insurance

     116         12    

Income tax payments

     (256)         (129)    
  

 

 

   

 

 

 

Net cash flows from operating activities (1) (2)

     152,631         93,250    
  

 

 

   

 

 

 

Investing activities: (3)

    

Acquisition of property, plant and equipment and intangible assets

     (83,629)         (43,640)    

Proceeds from sales of financial assets

     3,473         9,256    

Payments from purchases of financial assets

     (9,409)         (13,094)    

Interests received from financial assets

     89         1,172    

Proceeds from sales of assets

     177         -    
  

 

 

   

 

 

 

Net cash flows used in investing activities

     (89,299)         (46,306)    
  

 

 

   

 

 

 

Financing activities: (3)

    

Payments of loans

     (49,729)         (47,468)    

Payments of interests

     (18,474)         (17,663)    

Proceeds from loans

     37,918         25,713    

Payments of leases

     (9,075)         (6,783)    

Payments of interests in relation to income tax

     (47)         (7)    
  

 

 

   

 

 

 

Net cash flows used in financing activities

     (39,407)         (46,208)    
  

 

 

   

 

 

 
    
  

 

 

   

 

 

 

Translation differences on cash and cash equivalents

     1,607         922    
  

 

 

   

 

 

 
    
  

 

 

   

 

 

 

Net Increase in cash and cash equivalents

     25,532         1,658    
  

 

 

   

 

 

 
    

Cash and cash equivalents at the beginning of the fiscal year

     62,678         54,618    

Cash and cash equivalents at the end of the period

     88,210         56,276    
  

 

 

   

 

 

 

Net Increase in cash and cash equivalents

     25,532         1,658    
  

 

 

   

 

 

 

 

(1)

Does not include exchange differences generated by cash and cash equivalents, which are disclosed separately in this statement.

(2)

Includes 5,648 and 3,627 for the three-month period ended March 31, 2022 and 2021, respectively, for payment of short-term leases and of the variable charge of leases related to the underlying asset use or performance.

(3)

The main investing and financing transactions that have not affected cash and cash equivalents correspond to:

 

     For the three-month period ended
March 31,
 
     2022      2021  

Unpaid acquisitions of property, plant and equipment

     30,542          16,674    

Additions of right-of-use assets

     4,602          7,020    

Capitalization of depreciation of right-of-use assets

     1,567          873    

Capitalization of financial accretion for lease liabilities

     532          293    

Accompanying notes are an integral part of these condensed interim consolidated financial statements.

PABLO GERARDO GONZÁLEZ

President                    


Table of Contents

 

8

 

English translation of the condensed interim consolidated financial statements originally filed in Spanish with the CNV.

In case of discrepancy, the condensed interim consolidated financial statements filed with the CNV prevail over this translation.

 

YPF SOCIEDAD ANONIMA

 

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2022 AND COMPARATIVE INFORMATION (UNAUDITED)

(Amounts expressed in millions of Pesos, except for shares and per share amounts expressed in Pesos, or as otherwise indicated)

   LOGO

 

1.  GENERAL INFORMATION, STRUCTURE AND ORGANIZATION OF THE BUSINESS OF THE GROUP

General information

YPF S.A. (“YPF” or the “Company”) is a stock corporation (sociedad anónima) incorporated under the laws of the Argentine Republic, with a registered office at Macacha Güemes 515, in the City of Buenos Aires.

YPF and its subsidiaries (the “Group”) form the leading energy group in Argentina, which operates a fully integrated oil and gas chain with leading market positions across the domestic Upstream, Downstream and Gas and Power segments.

Structure and organization of the economic Group

The following chart shows the organizational structure, including the main companies of the Group, as of March 31, 2022:

 

 

LOGO

 

(1)

Held directly and indirectly.

(2)

See Note 3 to the annual consolidated financial statements.

(3)

See Note 35.c.3) to the annual consolidated financial statements.


Table of Contents

 

9

 

English translation of the condensed interim consolidated financial statements originally filed in Spanish with the CNV.

In case of discrepancy, the condensed interim consolidated financial statements filed with the CNV prevail over this translation.

 

YPF SOCIEDAD ANONIMA

 

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2022 AND COMPARATIVE INFORMATION (UNAUDITED)

 

1.  GENERAL INFORMATION, STRUCTURE AND ORGANIZATION OF THE BUSINESS OF THE GROUP (cont.)

  

 

LOGO

 

Organization of the business

As of March 31, 2022, the Group carries out its operations in accordance with the following structure:

 

  -

Upstream;

 

  -

Gas and Power;

 

  -

Downstream;

 

  -

Central administration and others, which covers the remaining activities not included in the previous categories.

Activities covered by each business segment are detailed in Note 6.

Almost all operations, properties and clients are located in Argentina. However, the Group also holds participating interests in exploratory areas in Bolivia and sells lubricants and derivatives in Brazil and Chile.

2.  BASIS OF PREPARATION OF THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

2.a) Basis of preparation

The condensed interim consolidated financial statements of YPF for the three-month period ended March 31, 2022 are presented in accordance with IAS No. 34 “Interim Financial Reporting”. These condensed interim consolidated financial statements should be read in conjunction with the annual consolidated financial statements of the Group as of December 31, 2021 (the “annual consolidated financial statements”) presented in accordance with IFRS as issued by the IASB.

Moreover, some additional information required by the LGS 19,550 and/or CNV’s regulations have been included.

These condensed interim consolidated financial statements were approved by the Board of Directors’ meeting and authorized to be issued on May 11, 2022.

These condensed interim consolidated financial statements corresponding to the three-month period ended March 31, 2022 are unaudited. The Company´s Management believes they have included all necessary adjustments to reasonably present the results of each period on a basis consistent with the audited annual consolidated financial statements. Net Profit for the three-month period ended March 31, 2022 does not necessarily reflect the proportion of the Group’s full-year Net Profit.

2.b) Significant Accounting Policies

The significant accounting policies are described in Note 2.b) to the annual consolidated financial statements.

The accounting policies adopted in the preparation of these condensed interim consolidated financial statements are consistent with those used in the preparation of the annual consolidated financial statements, except for the valuation policy for income tax detailed in Note 18.

Functional and presentation currency

As mentioned in Note 2.b.1) to the annual consolidated financial statements, YPF has defined the dollar as its functional currency. Additionally, according to CNV Resolution No. 562, YPF must present its financial statements in pesos.

Effects of the translation of investments in subsidiaries, associates and joint ventures with a functional currency corresponding to a hyperinflationary economy

The results and financial position of subsidiaries with the Peso as functional currency were translated into dollars by the following procedures: all amounts (i.e., assets, liabilities, stockholders’ equity items, expenditures and revenues) were translated at the exchange rate effective at the closing date of the financial statements, except for comparative amounts, which were presented as current amounts in the financial statements of the previous fiscal year (i.e., these amounts were not adjusted to reflect subsequent variations in price levels or exchange rates). Thus, the effect of the restatement of comparative amounts was recognized in Other comprehensive income.

These criteria were also implemented by the Group for its investments in associates and joint ventures.


Table of Contents

 

10

 

English translation of the condensed interim consolidated financial statements originally filed in Spanish with the CNV.

In case of discrepancy, the condensed interim consolidated financial statements filed with the CNV prevail over this translation.

 

YPF SOCIEDAD ANONIMA

 

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2022 AND COMPARATIVE INFORMATION (UNAUDITED)

 

2.  BASIS OF PREPARATION OF THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (cont.)

  

 

LOGO

 

Adoption of new standards and interpretations effective as of January 1, 2022

The Group has adopted all new and revised standards and interpretations, issued by the IASB, relevant to its operations which are of mandatory and effective application as of March 31, 2022, as specified in Note 2.b.26) to the annual consolidated financial statements.

2.c) Accounting Estimates and Judgments

The preparation of financial statements at a certain date requires Management to make estimates and assessments affecting the amount of assets and liabilities recorded, contingent assets and liabilities disclosed at such date, as well as income and expenses recorded during the period. Actual future results might differ from the estimates and assessments made as of the date of preparation of these condensed interim consolidated financial statements.

In preparing these condensed interim consolidated financial statements, significant estimates and judgments were made by Management in applying the Group’s accounting policies and the main sources of uncertainty were consistent with those applied by the Group in the preparation of the annual consolidated financial statements, which are disclosed in Notes 2.b) and 2.c) to the annual consolidated financial statements.

Going concern

The Management of the Company considers it appropriate to adopt the going concern basis of accounting for the presentation and valuation of these consolidated financial statements.

2.d) Comparative information

Amounts and other information corresponding to the year ended December 31, 2021 and to the three-month period ended March 31, 2021 are an integral part of these condensed interim consolidated financial statements and are intended to be read only in relation to these financial statements.

3.  SEASONALITY OF OPERATIONS

Historically, the Group’s results have been subject to seasonal fluctuations throughout the year, particularly as a result of the increase in natural gas sales during the winter driven by the increased demand in the residential segment. Therefore, the Group is subject to seasonal fluctuations in its sales volumes and sales prices, with higher natural gas sales in winter at a higher price.

4.  ACQUISITIONS AND DISPOSITIONS

During the three-month period ended March 31, 2022, there were no significant acquisitions and dispositions.

5.  FINANCIAL RISK MANAGEMENT

The Group’s activities expose it to a variety of financial risks: Market risk (including foreign currency risk, interest rate risk, and price risks), credit risk and liquidity risk. Within the Group, risk management functions are conducted in relation to financial risks associated to financial instruments to which the Group is exposed during a certain period or as of a specific date.

During the three-month period ended March 31, 2022, there were no significant changes in the administration or risk management policies implemented by the Group as described in Note 4 to the annual consolidated financial statements.

 

 

Liquidity risk management

Most of the Group’s loans contain market-standard covenants for contracts of this nature, which include financial covenants in respect of the Group’s leverage ratio and debt service coverage ratio, and events of defaults triggered by materially adverse judgements, among others (see Notes 16, 32 and 33 to the annual consolidated financial statements).

The Group monitors compliance with covenants on a quaterly basis. As of March 31, 2022, the Group is in compliace with its covenants.


Table of Contents

 

11

 

English translation of the condensed interim consolidated financial statements originally filed in Spanish with the CNV.

In case of discrepancy, the condensed interim consolidated financial statements filed with the CNV prevail over this translation.

 

YPF SOCIEDAD ANONIMA

 

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2022 AND COMPARATIVE INFORMATION (UNAUDITED)

 

5.  FINANCIAL RISK MANAGEMENT (cont.)

  

 

LOGO

 

Additionally, it should be noted that, under the terms and conditions of the loans that our subsidiary Metrogas has taken, the debt and interest service coverage ratio would not have been complied with, which could have accelerated the maturities of these financial liabilities. However, the financial creditors formally accepted to waive Metrogas from complying with the contractual obligation related to such financial ratios, as of March 31, 2022.

6.  SEGMENT INFORMATION

The different segments in which the Group is organized take into consideration the different activities from which the Group obtains income and incurs expenses. The aforementioned organizational structure is based on the way in which the highest authority analyzes the main financial and operating magnitudes for making decisions about resource allocation and performance assessment also considering the Group’s business strategy.

 

 

Upstream

The Upstream segment carries out all activities relating to the exploration, development and production of oil and natural gas.

Revenue is generated from: (i) the sale of produced crude oil to the Downstream segment and, marginally, from its sale to third parties; (ii) the sale of produced gas to the Gas and Power segment.

 

 

Gas and Power

The Gas and Power segment generates revenue from the development of activities relating to: (i) the natural gas transportation to third parties and the Downstream segment, and its commercialization (ii) the commercial and technical operation of the LNG regasification terminals in Escobar and Bahía Blanca, by hiring regasification vessels, and (iii) the separation and distribution of natural gas and the generation of electric power through its investments in associates and joint ventures.

On January 1, 2022, certain assets related to gas transportation, conditioning and processing for the separation of gasoline, propane and butane, which were previously managed by the Upstream segment, were grouped into the new CGU Midstream Gas within the Gas and Power segment. Because it is a new gas liquid management model that did not exist in previous years, no retroactive effect has been given to business segment information. In addtion, the assets transferred and operating results are not significant.

In addition to the proceeds derived from the sale of natural gas to third parties and the intersegment, which is then recognized as a “purchase” to the Upstream segment, and including stimulus plans for natural gas production in force (see Note 35.d) to the annual consolidated financial statements), Gas and Power segment accrues a fee in its favor with the Upstream segment to carry out such commercialization.

 

 

Downstream

The Downstream segment develops activities relating to: (i) crude oil refining and petrochemical production, (ii) commercialization of refined and petrochemical products obtained from such processes, (iii) logistics related to the transportation of crude oil to refineries and the transportation and distribution of refined and petrochemical products to be marketed in the different sales channels.

It obtains its income from the marketing mentioned in item (ii) above, which is developed through the Retail, Industry, Agro, LPG, Chemicals, International Commerce and Transportation, Lubricants and Specialties, and Sales to Companies businesses.

It incurs in all expenses relating to the aforementioned activities, including the purchase of crude oil from the Upstream segment and third parties and the natural gas to be consumed in the refinery and petrochemical industrial complexes from the Gas and Power segment.

 

 

Central Administration and Others

It covers other activities, not falling into the aforementioned categories, nor do they constitute reportable business segments, mainly including corporate administrative expenses and assets and construction activities.

Sales between business segments were made at internal transfer prices established by the Group, which generally seek to approximate market prices. Operating profit and assets for each segment have been determined after consolidation adjustments.


Table of Contents

 

12

 

English translation of the condensed interim consolidated financial statements originally filed in Spanish with the CNV.

In case of discrepancy, the condensed interim consolidated financial statements filed with the CNV prevail over this translation.

 

YPF SOCIEDAD ANONIMA

 

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2022 AND COMPARATIVE INFORMATION (UNAUDITED)

   LOGO

6.  SEGMENT INFORMATION (cont.)

 

         Upstream           Gas and Power            Downstream          Central
Administration
        and Others        
     Consolidation
    Adjustments (1)    
     Total  

For the three-month period ended March 31, 2022

 

             

Revenues from sales

     785         48,025          333,416          9,311          (3,368)          388,169    

Revenues from intersegment sales

     163,139         9,282          1,838          16,278          (190,537)          -    
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Revenues

     163,924         57,307          335,254          25,589          (193,905)          388,169    
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Operating profit / (loss)

     23,299         301          33,001          (6,364)          (9,788)          40,449    

Income from equity interests in associates and joint ventures

     -         7,691          4,538          -          -          12,229    

Depreciation of property, plant and equipment

     47,383       (2)      1,467          11,833          2,126          -          62,809    

Acquisition of property, plant and equipment

     64,523         737          11,186          3,190          -          79,636    

Assets

     1,144,908         296,514          970,225          228,241          (24,592)          2,615,296    
                
For the three-month period ended March 31, 2021                                    

Revenues from sales

     1,998         30,293          199,915          4,901          (2,217)          234,890    

Revenues from intersegment sales

     108,367         2,673          1,429          8,091          (120,560)          -    
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Revenues

     110,365         32,966          201,344          12,992          (122,777)          234,890    
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Operating profit / (loss)

     1,632         (2,827)          17,601          (3,703)          (5,849)          6,854    

Income from equity interests in associates and joint ventures

     -         3,861          1,255          -          -          5,116    

Depreciation of property, plant and equipment

     48,702       (2)      584          9,815          1,774          -          60,875    

Acquisition of property, plant and equipment

     37,589         360          4,544          622          -          43,115    
                
As of December 31, 2021                                         

Assets

     1,075,503         266,056          879,985          182,180          (13,656)          2,390,068    

 

(1)

Corresponds to the elimination among segments of the Group.

(2)

Includes depreciation of charges for impairment of property, plant and equipment.


Table of Contents

 

13

 

English translation of the condensed interim consolidated financial statements originally filed in Spanish with the CNV.

In case of discrepancy, the condensed interim consolidated financial statements filed with the CNV prevail over this translation.

 

YPF SOCIEDAD ANONIMA

 

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2022 AND COMPARATIVE INFORMATION (UNAUDITED)

   LOGO

 

7.  FINANCIAL INSTRUMENTS BY CATEGORY

Fair value measurements

Fair value measurements are described in Note 6 to the annual consolidated financial statements.

The tables below show the Group’s financial assets measured at fair value as of March 31, 2022 and December 31, 2021, and their allocation to their fair value levels:

 

     As of March 31, 2022  
Financial Assets          Level 1                  Level 2                  Level 3                  Total        

  Investments in financial assets:(1)

           

  - Public securities

     10,272          -          -          10,272    
  

 

 

    

 

 

    

 

 

    

 

 

 
     10,272          -          -          10,272    
  

 

 

    

 

 

    

 

 

    

 

 

 

  Cash and cash equivalents:

           

  - Mutual funds

     41,541          -          -          41,541    
  

 

 

    

 

 

    

 

 

    

 

 

 
     41,541          -          -          41,541    
  

 

 

    

 

 

    

 

 

    

 

 

 
     51,813          -          -          51,813    
  

 

 

    

 

 

    

 

 

    

 

 

 
           
     As of December 31, 2021  
Financial Assets    Level 1      Level 2      Level 3      Total  

  Investments in financial assets:(1)

           

  - Public securities

     10,032          -          -          10,032    
  

 

 

    

 

 

    

 

 

    

 

 

 
     10,032          -          -          10,032    
  

 

 

    

 

 

    

 

 

    

 

 

 

  Cash and cash equivalents:

           

  - Mutual funds

     30,189          -          -          30,189    
  

 

 

    

 

 

    

 

 

    

 

 

 
     30,189          -          -          30,189    
  

 

 

    

 

 

    

 

 

    

 

 

 
     40,221          -          -          40,221    
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(1)

See Note 15.

The Group has no financial liabilities measured at fair value with change in results.

Fair value estimates

For the three-month period ended March 31, 2022, changes in business or economic circumstances did not significantly affect the fair value of the Group’s financial assets and liabilities, whether measured at fair value or amortized cost.

During the three-month period ended March 31, 2022, there were no transfers between the different hierarchies used to determine the fair value of the Group’s financial instruments.

Fair value of financial assets and financial liabilities measured at amortized cost

The estimated fair value of loans, considering unadjusted listed prices (Level 1) for NO and interest rates offered to the Group (Level 3) for the other financial loans remaining, amounted to 666,443 and 562,653 as of March 31, 2022 and December 31, 2021, respectively.

The fair value of other receivables, trade receivables, investment in financial assets, cash and cash equivalents, other liabilities and accounts payable at amortized cost, do not differ significantly from their book value.

 

8.

INTANGIBLE ASSETS

 

         March 31, 2022              December 31, 2021      

Net book value of intangible assets

     51,002          47,474    

Provision for impairment of intangible assets

     (4,821)          (4,460)    
  

 

 

    

 

 

 
     46,181          43,014    
  

 

 

    

 

 

 


Table of Contents

 

14

 

English translation of the financial statements originally filed in Spanish with the CNV.

In case of discrepancy, the financial statements filed with the CNV prevail over this translation.

 

YPF SOCIEDAD ANONIMA

 

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2022 AND COMPARATIVE INFORMATION (UNAUDITED)

   LOGO

 

8.

INTANGIBLE ASSETS (cont.)

 

The evolution of the Group’s intangible assets for the three-month period ended March 31, 2022 and the year ended December 31, 2021 is as follows:

 

     Service
        concessions        
     Exploration
            rights             
     Other
        intangibles        
             Total          

Cost

     74,197          13,436          35,330          122,963    

Accumulated amortization

     51,344          -          30,374          81,718    
  

 

 

    

 

 

    

 

 

    

 

 

 

Balance as of December 31, 2020

     22,853          13,436          4,956          41,245    
  

 

 

    

 

 

    

 

 

    

 

 

 
           

Cost

           

Increases

     2,380          34          694          3,108    

Translation effect

     16,547          2,739          7,495          26,781    

Adjustment for inflation (1)

     -          -          2,028          2,028    

Decreases, reclassifications and other movements

     -          (2,199)          158          (2,041)    
           

Accumulated amortization

           

Increases

     3,485          -          1,348          4,833    

Translation effect

     11,623          -          6,718          18,341    

Adjustment for inflation (1)

     -          -          473          473    

Decreases, reclassifications and other movements

     -          -          -          -    
           

Cost

     93,124          14,010          45,705          152,839    

Accumulated amortization

     66,452          -          38,913          105,365    
  

 

 

    

 

 

    

 

 

    

 

 

 

Balance as of December 31, 2021

     26,672          14,010          6,792          47,474    
  

 

 

    

 

 

    

 

 

    

 

 

 
           

Cost

           

Increases

     444          -          88          532    

Translation effect

     7,542          1,132          3,157          11,831    

Adjustment for inflation (1)

     -          -          1,076          1,076    

Decreases, reclassifications and other movements

     -          -          -          -    
                  

Accumulated amortization

           

Increases

     759          -          423          1,182    

Translation effect

     5,400          -          2,975          8,375    

Adjustment for inflation (1)

     -          -          354          354    

Decreases, reclassifications and other movements

     -          -          -          -    
           

Cost

     101,110          15,142          50,026          166,278    

Accumulated amortization

     72,611          -          42,665          115,276    
  

 

 

    

 

 

    

 

 

    

 

 

 

Balance as of March 31, 2022

     28,499          15,142          7,361          51,002    
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(1)

Corresponds to adjustment for inflation of opening balances of intangible assets in subsidiaries with the Peso as functional currency which was charged to Other comprehensive income.

 

9.

PROPERTY, PLANT AND EQUIPMENT

 

             March 31, 2022                      December 31, 2021          

Net book value of property, plant and equipment

     1,867,507          1,721,628    

Provision for obsolescence of materials and equipment

     (13,552)          (12,576)    

Provision for impairment of property, plant and equipment

     (66,700)          (66,793)    
  

 

 

    

 

 

 
     1,787,255          1,642,259    
  

 

 

    

 

 

 


Table of Contents

 

15

 

English translation of the condensed interim consolidated financial statements originally filed in Spanish with the CNV.

In case of discrepancy, the condensed interim consolidated financial statements filed with the CNV prevail over this translation.

 

YPF SOCIEDAD ANONIMA

 

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2022 AND COMPARATIVE INFORMATION (UNAUDITED)

   LOGO

 

9.

PROPERTY, PLANT AND EQUIPMENT (cont.)

 

Changes in Group’s property, plant and equipment for the three-month period ended March 31, 2022 and the year ended December 31, 2021 are as follows:

 

     Land and
    buildings    
     Mining
property,
wells and
related
    equipment    
     Refinery
equipment
and
petrochemical
        plants      
     Transportation
    equipment    
     Materials and
equipment in
    warehouse    
     Drilling and
work in
    progress    
     Exploratory
drilling in
    progress    
     Furniture,
fixtures and
    installations    
     Selling
    equipment    
     Infrastructure
for natural gas
    distribution    
     Other
    property    
         Total      

Cost

     107,764          3,879,215          683,186          38,319          89,726          223,909          3,898          62,805          106,419          64,099          64,916          5,324,256    

Accumulated depreciation

     51,774          3,185,191          400,536          26,699          -          -          -          53,975          67,530          33,572          48,831          3,868,108    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Balance as of December 31, 2020

     55,990          694,024          282,650          11,620        89,726          223,909          3,898          8,830          38,889          30,527          16,085          1,456,148    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
Cost                                                                                    

Increases

     522          3,896          4,548          589          61,152          186,030          2,092          91          -          -          1,068          259,988    

Translation effect

     21,309          867,307          153,012          7,842          16,918          46,760          702          13,923          24,027          -          11,391          1,163,191    

Adjustment for inflation (1)

     6,839          -          -          1,734          749          5,093          -          1,049          -          32,652          6,712          54,828    

Decreases, reclassifications and other movements

     1,533          150,411          13,746          1,813          (60,031)          (172,436)          (2,464)          4,848          5,026          5,360          4,539          (47,655)    
Accumulated
depreciation
                                                                                   

Increases

     2,526          234,245          33,888          2,163          -          -          -          5,206          6,331          1,931          2,670          288,960    

Translation effect

     10,021          722,567          91,187          5,487          -          -          -          11,898          15,415          -          8,731          865,306    

Adjustment for inflation (1)

     3,545          -          -          1,121          -          -          -          961          -          17,102          5,118          27,847    

Decreases, reclassifications and other movements

     (541)          (14,973)          (127)          (851)          -          -          -          18          (42)          (561)          (164)          (17,241)    

Cost

     137,967          4,900,829          854,492          50,297          108,514          289,356          4,228          82,716          135,472          102,111          88,626          6,754,608    

Accumulated depreciation

     67,325          4,127,030          525,484          34,619          -          -          -          72,058          89,234          52,044          65,186          5,032,980    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Balance as of December 31, 2021

     70,642          773,799          329,008          15,678          108,514          289,356          4,228          10,658          46,238          50,067          23,440          1,721,628    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
Cost                                                                                    

Increases

     48          -          134          146          21,881          56,434          942          12          -          -          39          79,636    

Translation effect

     9,615          397,777          69,155          3,604          8,327          21,887          242          6,430          10,935          -          5,165          533,137    

Adjustment for inflation (1)

     3,188          -          -          877          349          1,084          -          522          -          16,409          3,884          26,313    

Decreases, reclassifications and other movements

     125          40,816          3,000          24          (16,643)          (35,908)          (2,176)          15          (162)          513          (2)          (10,398)    
Accumulated
depreciation
                                                                                   

Increases

     718          52,963          9,378          592          -          -          -          1,317          1,715          643          820          68,146    

Translation effect

     4,601          335,505          42,838          2,507          -          -          -          5,635          7,246          -          3,981          402,313    

Adjustment for inflation (1)

     1,676          -          -          584          -          -          -          463          -          8,363          2,559          13,645    

Decreases, reclassifications and other movements

     (44)          (406)          (55)          (63)          -          -          -          5          (743)          11          -          (1,295)    

Cost

     150,943          5,339,422          926,781          54,948          122,428          332,853          3,236          89,695          146,245          119,033          97,712          7,383,296    

Accumulated depreciation

     74,276          4,515,092          577,645          38,239          -          -          -          79,478          97,452          61,061          72,546          5,515,789    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Balance as of March 31, 2022

     76,667          824,330          349,136          16,709          122,428          332,853          3,236          10,217          48,793          57,972          25,166          1,867,507    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

(1)

Corresponds to adjustments for inflation of opening balances of property, plant and equipment of subsidiaries with the Peso as functional currency which was charged to Other comprehensive income.


Table of Contents

 

16

 

English translation of the condensed interim consolidated financial statements originally filed in Spanish with the CNV.

In case of discrepancy, the condensed interim consolidated financial statements filed with the CNV prevail over this translation.

 

YPF SOCIEDAD ANONIMA

 

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2022 AND COMPARATIVE INFORMATION (UNAUDITED)

   LOGO

9.  PROPERTY, PLANT AND EQUIPMENT (cont.)

 

The Group capitalizes the financial cost of loans as part of the cost of the assets. For the three-month period ended March 31, 2022 and 2021, the rate of capitalization was 8.27% and 8.66%, respectively, and the amount capitalized amounted to 269 and 250, respectively, for the period mentioned above.

Set forth below is the evolution of the provision for obsolescence of materials and equipment for the three-month period ended March 31, 2022 and the year ended December 31, 2021:

 

     Provision for obsolescence
of materials and equipment
 

Balance as of December 31, 2020

     11,267    
  

 

 

 

Increases charged to profit or loss

     593    

Decreases charged to profit or loss

     (1,676)    

Applications due to utilization

     (98)    

Translation differences

     2,485    

Adjustment for inflation (1)

     5    
  

 

 

 

Balance as of December 31, 2021

                 12,576    
  

 

 

 

Increases charged to profit or loss

     66    

Decreases charged to profit or loss

     -    

Applications due to utilization

     (112)    

Translation differences

     1,009    

Adjustment for inflation (1)

     13    
  

 

 

 

Balance as of March 31, 2022

     13,552    
  

 

 

 

 

(1)

Corresponds to adjustment for inflation of opening balances of the provision for obsolescence of materials and equipment in subsidiaries with the Peso as functional currency which was charged to Other comprehensive income.

Set forth below is the evolution of the provision for impairment of property, plant and equipment for the three-month period ended March 31, 2022 and the year ended December 31, 2021:

 

     Provision for impairment of
property, plant and
equipment
 

Balance as of December 31, 2020

     65,354    
  

 

 

 

Increases charged to profit or loss (1)

     9,776    

Applications due to utilization

     (36)    

Depreciation (2)

     (21,274)    

Translation differences

     12,820    

Adjustment for inflation (3)

     236    

Transfers and other movements

     (83)    
  

 

 

 

Balance as of December 31, 2021

                         66,793    
  

 

 

 

Increases charged to profit or loss

     -    

Applications due to utilization

     -    

Depreciation (2)

     (5,337)    

Translation differences

     5,124    

Adjustment for inflation (3)

     120    

Transfers and other movements

     -    
  

 

 

 

Balance as of March 31, 2022

     66,700    
  

 

 

 

 

(1)

See Note 2.c) to the annual consolidated financial statements.

(2)

Included in “Depreciation of property, plant and equipment” in Note 27.

(3)

Corresponds to adjustment for inflation of opening balances of the provision for impairment of property, plant and equipment in subsidiaries with the Peso as functional currency which was charged to Other comprehensive income.


Table of Contents

 

17

 

English translation of the condensed interim consolidated financial statements originally filed in Spanish with the CNV.

In case of discrepancy, the condensed interim consolidated financial statements filed with the CNV prevail over this translation.

 

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2022 AND COMPARATIVE INFORMATION (UNAUDITED)

   LOGO

 

10. RIGHT-OF-USE ASSETS

The evolution of the Group’s right-of-use assets for the three-month period ended March 31, 2022 and the year ended December 31, 2021 are as follows:

 

     Land and
buildings
     Exploitation
facilities and
equipment
     Machinery
and
equipment
     Gas stations      Transportation
equipment
     Total  

Cost

     1,350          27,377          25,038          7,704          19,201          80,670    

Accumulated depreciation

     728          12,412          9,741          2,198          11,510          36,589    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Balance as of December 31, 2020

     622          14,965          15,297          5,506          7,691          44,081    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Cost

                 

Increases

     1,734        3,843          2,702          1,098          18,368          27,745    

Translation differences

     295          6,101          5,509          1,391          4,414          17,710    

Adjustment for inflation (1)

     18          -          -          614          -          632    

Decreases, reclassifications and other movements

     -          (1,213)          (4,441)          (531)          (10,625)          (16,810)    

Accumulated depreciation

                 

Increases

     208          7,720          6,400          1,089          7,949          23,366    

Translation differences

     172          3,288          2,611          425          2,514          9,010    

Adjustment for inflation (1)

     17          -          -          256          -          273    

Decreases, reclassifications and other movements

     -          (707)          (1,930)          (230)          (9,684)          (12,551)    

Cost

     3,397          36,108          28,808          10,276          31,358          109,947    

Accumulated depreciation

     1,125          22,713          16,822          3,738          12,289          56,687    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Balance as of December 31, 2021

     2,272          13,395          11,986          6,538          19,069          53,260    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Cost

                 

Increases

     7          -          170          220          4,205          4,602    

Translation differences

     267          2,917          2,329          663          2,533          8,709    

Adjustment for inflation (1)

     11          -          -          324          -          335    

Decreases, reclassifications and other movements

     -          -          -          -          -          -    

Accumulated depreciation

                 

Increases

     458          1,786          1,516          307          2,891          6,958    

Translation differences

     111          1,911          1,426          234          1,119          4,801    

Adjustment for inflation (1)

     11          -          -          152          -          163    

Decreases, reclassifications and other movements

     -          -          -          -          -          -    

Cost

     3,682          39,025          31,307          11,483          38,096          123,593    

Accumulated depreciation

     1,705          26,410          19,764          4,431          16,299          68,609    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Balance as of March 31, 2022

                     1,977                          12,615                          11,543                          7,052                          21,797                          54,984    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

(1)

Corresponds to adjustments for inflation of opening balances of right-of-use assets of subsidiaries with the Peso as functional currency which was charged to Other comprehensive income.

11. INVESTMENTS IN ASSOCIATES AND JOINT VENTURES

The following table shows the value of the investments in associates and joint ventures at an aggregate level, as of March 31, 2022 and December 31, 2021:

 

     March 31,
2022
     December 31,
2021
 

Amount of investments in associates

     18,018          16,450    

Amount of investments in joint ventures

     165,074          140,475    
  

 

 

    

 

 

 
                 183,092                          156,925    
  

 

 

    

 

 

 


Table of Contents

 

18

 

English translation of the condensed interim consolidated financial statements originally filed in Spanish with the CNV.

In case of discrepancy, the condensed interim consolidated financial statements filed with the CNV prevail over this translation.

 

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2022 AND COMPARATIVE INFORMATION (UNAUDITED)

   LOGO

11. INVESTMENTS IN ASSOCIATES AND JOINT VENTURES (cont.)

 

The main movements during the three-month period ended March 31, 2022 and the year ended December 31, 2021 which affected the value of the aforementioned investments, correspond to:

 

     Investments in associates
and joint ventures
 

Balance as of December 31, 2020

     107,112    
  

 

 

 

Income on investments in associates and joint ventures

     26,977    

Translation differences

     24,801    

Distributed dividends

     (5,499)    

Adjustment for inflation (1)

     3,534    
  

 

 

 

Balance as of December 31, 2021

     156,925    
  

 

 

 

Income on investments in associates and joint ventures

     12,229    

Translation differences

     12,696    

Distributed dividends

     -    

Adjustment for inflation (1)

     1,242    
  

 

 

 

Balance as of March 31, 2022

                                          183,092    
  

 

 

 

 

(1)

Corresponds to adjustment for inflation of opening balances of associates and joint ventures with the Peso as functional currency which was charged to Other comprehensive income.

The following table shows the principal amounts of the results of the investments in associates and joint ventures of the Group, calculated according to the equity method therein, for the three-month period ended March 31, 2022 and 2021. The Group has adjusted, if applicable, the values reported by these companies to adapt them to the accounting criteria used by the Group for the calculation of the equity method value in the aforementioned dates:

 

     Associates      Joint ventures  
     For the three-month period ended
March 31,
     For the three-month period ended
March 31,
 
     2022      2021      2022      2021  

Net income

     222          894          12,007          4,222    

Other comprehensive income

     1,304          864          12,634          9,327    
  

 

 

    

 

 

    

 

 

    

 

 

 

Comprehensive income for the period

                     1,526                          1,758                          24,641                          13,549    
  

 

 

    

 

 

    

 

 

    

 

 

 

The Group does not have investments in subsidiaries with significant non-controlling interests. Likewise, the Group does not have investments in associates and joint ventures that are significant, with the exception of the investment in YPF EE.

The management information corresponding to YPF EE’s assets and liabilities as of March 31, 2022 and December 31, 2021, as well as the results for the three-month period ended March 31, 2022 and 2021, are detailed below:

 

     March 31, 2022 (1)      December 31, 2021 (1)  

Non-current assets

     197,880          183,767    

Current assets

     38,136          24,849    
  

 

 

    

 

 

 

Total assets

     236,016          208,616    
  

 

 

    

 

 

 

Non-current liabilities

     94,984          80,626    

Current liabilities

     34,296          33,211    
  

 

 

    

 

 

 

Total liabilities

     129,280                              113,837    
  

 

 

    

 

 

 
     
  

 

 

    

 

 

 

Total shareholders’ equity

                         106,736          94,779    
  

 

 

    

 

 

 
     For the three-month period ended March 31,  
     2022 (1)      2021 (1)  

Revenues

     12,306          8,717    

Costs

     (4,849)          (4,271)    
  

 

 

    

 

 

 

Gross profit

     7,457          4,446    
  

 

 

    

 

 

 

Operating profit

     6,852          4,540    

Income from equity interests in associates and joint ventures

     (143)          (63)    

Net financial results

     (1,509)          (1,582)    
  

 

 

    

 

 

 

Net profit before income tax

     5,200          2,895    
  

 

 

    

 

 

 

Income tax

     (1,503)          (1,262)    
  

 

 

    

 

 

 

Net profit

     3,697          1,633    
  

 

 

    

 

 

 

 

(1)

On this information, accounting adjustments have been made for the calculation of equity interest and results of YPF EE. The equity and adjusted results do not differ significantly from the YPF EE financial information disclosed here.


Table of Contents

 

19

 

English translation of the condensed interim consolidated financial statements originally filed in Spanish with the CNV.

In case of discrepancy, the condensed interim consolidated financial statements filed with the CNV prevail over this translation.

 

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2022 AND COMPARATIVE INFORMATION (UNAUDITED)

   LOGO

 

12. INVENTORIES

 

     March 31, 2022     December 31, 2021  

Refined products

     117,705         105,123    

Crude oil and natural gas

     38,091         37,521    

Products in process

     3,606         3,500    

Raw materials, packaging materials and others

     8,098         7,783    
  

 

 

   

 

 

 
                     167,500   (1)                      153,927   (1) 
  

 

 

   

 

 

 

 

(1)

As of March 31, 2022, and December 31, 2021, the cost of inventories does not exceed their net realizable value.

13. OTHER RECEIVABLES

 

     March 31, 2022      December 31, 2021  
     Non-current      Current      Non-current      Current  

Receivables from services and sales of other assets

     1,954          2,646          2,091          1,950    

Tax credit and export rebates

     1,672          9,687          15,263          14,616    

Loans to third parties and balances with related parties (1)

     1,094          902          975          1,617    

Collateral deposits

     2          1,706          2          3,509    

Prepaid expenses

     983          9,455          933          9,000    

Advances and loans to employees

     90          582          71          411    

Advances to suppliers and custom agents (2)

     -          11,649          -          15,377    

Receivables with partners in JO

     1,122          16,280          1,059          14,542    

Insurance receivables

     -          38          -          148    

Miscellaneous

     759          3,360          707          2,154    
  

 

 

    

 

 

    

 

 

    

 

 

 
     7,676          56,305          21,101          63,324    

Provision for other doubtful receivables

     (1,681)          (110)          (1,552)          (65)    
  

 

 

    

 

 

    

 

 

    

 

 

 
                     5,995                          56,195                          19,549                          63,259    
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(1)

See Note 37 for information about related parties.

(2)

Includes, among others, advances to customs agents for the payment of taxes and import duties related to the imports of fuels and goods.

14. TRADE RECEIVABLES

     March 31, 2022      December 31, 2021  
     Non-current      Current      Non-current      Current  

Accounts receivable and related parties (1) (2)

                         14,494                              165,198                              14,151                              144,336    

Provision for doubtful trade receivables

     (9,788)          (10,568)          (9,788)          (10,432)    
  

 

 

    

 

 

    

 

 

    

 

 

 
     4,706          154,630          4,363          133,904    
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(1)

See Note 37 for information about related parties.

(2)

See Note 25 for information about credits for contracts included in trade receivables.

Set forth below is the evolution of the provision for doubtful trade receivables for the three-month period ended March 31, 2022 and for the fiscal year ended December 31, 2021:

 

     Provision for doubtful trade receivables  
     Non-current     Current  

Balance as of December 31, 2020

     8,861   (2)      10,519    
  

 

 

   

 

 

 

Increases charged to expenses

     927         3,918    

Decreases charged to income

     -         (1,857)    

Applications due to utilization

     -         (2,424)    

Net exchange and translation differences

     -         674    

Result from net monetary position (1)

     -         (398)    
  

 

 

   

 

 

 

Balance as of December 31, 2021

     9,788   (2)      10,432    
  

 

 

   

 

 

 

Increases charged to expenses

     -         497    

Decreases charged to income

     -         (578)    

Applications due to utilization

     -         (40)    

Net exchange and translation differences

     -         280    

Result from net monetary position (1)

     -         (23)    
  

 

 

   

 

 

 

Balance as of March 31, 2022

                         9,788   (2)                          10,568    
  

 

 

   

 

 

 

 

(1)

Includes adjustment for inflation of opening balances of the provision for doubtful trade receivables in subsidiaries with the Peso as functional currency which was charged to Other comprehensive income and the adjustment for inflation of the fiscal year, which was charged to results.

(2)

Includes 8,861 corresponding to credits with natural gas distributors for the accumulated daily differences pursuant to Decree No. 1053/2018. See Note 35.c.1) to the annual consolidated financial statements.


Table of Contents

 

20

 

English translation of the condensed interim consolidated financial statements originally filed in Spanish with the CNV.

In case of discrepancy, the condensed interim consolidated financial statements filed with the CNV prevail over this translation.

 

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2022 AND COMPARATIVE INFORMATION (UNAUDITED)

   LOGO

 

15. INVESTMENT IN FINANCIAL ASSETS

     March 31, 2022      December 31, 2021  
     Non-current      Current      Non-current      Current  

Investments at amortized cost

           

Public securities (1)

     3,531          41,594          2,225          34,116    

Private securities - NO

     334          903          309          836    

Term deposits (2)

     -          6,413          -          6,028    
  

 

 

    

 

 

    

 

 

    

 

 

 
     3,865          48,910          2,534          40,980    
  

 

 

    

 

 

    

 

 

    

 

 

 

Investments at fair value with changes in results

           

Public securities (1)

     -          10,272          -          10,032    
  

 

 

    

 

 

    

 

 

    

 

 

 
     -          10,272          -          10,032    
  

 

 

    

 

 

    

 

 

    

 

 

 
                     3,865                          59,182                          2,534                          51,012    
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(1)

See Note 37.

(2)

Corresponds to term deposits with the BNA.

16. CASH AND CASH EQUIVALENTS

     March 31, 2022      December 31, 2021  

Cash and banks

     22,279          22,923    

Short-term investments (1)

     24,390          9,566    

Financial assets at fair value with change in results(2)

     41,541          30,189    
  

 

 

    

 

 

 
                         88,210                              62,678    
  

 

 

    

 

 

 

 

(1)

Includes term deposits and other invetsments with the BNA for 575 and 1,075 as of March 31, 2022 and December 31, 2021, respectively.

(2)

See Note 7.

17. PROVISIONS

Changes in the Group’s provisions for the three-month period ended March 31, 2022 and for the fiscal year ended December 31, 2021 are as follows:

 

     Provision for lawsuits and
contingencies
     Provision for
environmental liabilities
     Provision for hydrocarbon wells
abandonment obligations
     Total  
     Non-current     Current      Non-current      Current      Non-current      Current      Non-current      Current  

Balance as of December 31, 2020

     50,369         1,934          5,531          2,618          130,588          1,581          186,488          6,133    
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Increases charged to expenses

     40,607         199          10,876          -          14,955          -          66,438          199    

Decreases charged to income

     (4,278)         (3,574)          (12)          -          (9,632)          -          (13,922)          (3,574)    

Applications due to utilization

     (655)         (676)          -          (2,489)          -          (1,788)          (655)          (4,953)    

Reclassifications and other movements

     (4,283)         3,938          (6,888)          6,888          (6,567)          9,916          (17,738)          20,742    

Net exchange and translation differences

     7,758         383          295          6          29,859          361          37,912          750    

Result from net monetary position (1)

     (45)         -          -          -          -          -          (45)          -    
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Balance as of December 31, 2021

     89,473         2,204          9,802          7,023          159,203          10,070          258,478          19,297    
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Increases charged to expenses

     2,407         (1)          11          -          5,731          -          8,149          (1)    

Decreases charged to income

     (4,021)   (2)      -          (2)          -          -          -          (4,023)          -    

Applications due to utilization

     (106)         (1,288)          -          (982)          -          (682)          (106)          (2,952)    

Reclassifications and other movements

     (3,858)   (3)      1,241          (9)          9          (682)          682          (4,549)          1,932    

Net exchange and translation differences

     5,732         173          611          1          13,091          813          19,434          987    

Result from net monetary position (1)

     (1)         -          -          -          -          -          (1)          -    
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Balance as of March 31, 2022

             89,626                 2,329                  10,413                  6,051                  177,343                  10,883                  277,382                  19,263    
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

(1)

Includes adjustment for inflation of opening balances of provisions in subsidiaries with the Peso as functional currency which was charged to Other comprehensive income and the adjustment for inflation of the period, which was charged to results.

(2)

Includes 3,358 corresponding to the recovery of liabilities for the regularization regimes associated with the dispute over the cost deduction for hydrocarbon well abandonment for periods 2014-2017.

(3)

Includes 2,374 reclassified as “Income tax liability” for the regularization regimes associated with the dispute relating to the tax deduction of hydrocarbon well abandonment costs for periods 2014-2017.

Provisions for lawsuits, claims and environmental liabilities are described in Note 16 to the annual consolidated financial statements. Updates for the three-month period ended March 31, 2022 are described below:

17.a) Provision for lawsuits and contingencies

17.a.1) Claims arising from restrictions in the natural gas market

 

 

Transportadora de Gas del Norte S.A. (“TGN”)

On March 7, 2022, the appeal filed by YPF for the correction and/or clarification of certain aspects in the judgment rendered by the Court of Appeal was favorably resolved. Additionally, on that date an extraordinary appeal was filed against the judgment rendered by the Court of Appeal, which was granted on April 5, 2022 in relation to the federal issue raised and was denied in relation to the arbitrariness of the judgment rendered by the Court of Appeal, and a complaint appeal was filed in relation to this last aspect on April 12, 2022.


Table of Contents

 

21

 

English translation of the condensed interim consolidated financial statements originally filed in Spanish with the CNV.

In case of discrepancy, the condensed interim consolidated financial statements filed with the CNV prevail over this translation.

 

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2022 AND COMPARATIVE INFORMATION (UNAUDITED)

   LOGO

17. PROVISIONS (cont.)

 

17.a.2) Tax claims

 

 

Dispute over the cost deduction for hydrocarbon well abandonment

The Management of the Company, based on the opinion of its external advisors, and notwithstanding the technical merits for defending its position, evaluated the regularization plan provided for under Law No. 27,653, for the income tax and the compensations made in due course with the credit balances generated by said tax, and on March 30, 2022, adhered to the aforementioned plan for fiscal years 2014 to 2017 for 2,374, thus putting an end to the controversy corresponding to those periods.

18. INCOME TAX

According to IAS 34, income tax expense is recognized in each interim period based on the best estimate of the effective income tax rate expected at the end of the fiscal year. The amounts calculated for income tax expense for the three-month period ended March 31, 2022 may need to be adjusted in the subsequent period in case the projected effective tax rate estimate is modified based on new elements of judgment.

The calculation of the income tax expense accrued for the three-month period ended March 31, 2022 and 2021 is as follows:

 

     For the three-month period ended
March 31,
 
     2022      2021  

Current income tax

     (26,473)          (357)    

Deferred income tax

     2,859          (9,569)    
  

 

 

    

 

 

 
     (23,614)          (9,926)    
  

 

 

    

 

 

 

Income tax - Well abandonment

                             1,948                                  -    
  

 

 

    

 

 

 
     (21,666)          (9,926)    
  

 

 

    

 

 

 

The reconciliation between the charge to net income for income tax for the three-month period ended March 31, 2022 and 2021 and the one that would result from applying the prevailing tax rate on net income before income tax arising from the condensed interim consolidated statements of comprehensive income for each period is as follows:

 

     For the three-month period ended
March 31,
 
     2022     2021  

Net income before income tax

     48,083         7,679    

Average tax rate

                     34.74%   (4)                      30.00%    
  

 

 

   

 

 

 

Average tax rate applied to net income before income tax

     (16,705)         (2,304)    

Effect of the valuation of property, plant and equipment and intangible assets, net

     4,111         (1,477)    

Effect of exchange differences and other results associated to the valuation of the currency, net (1)

     (10,745)         (4,250)    

Effect of the valuation of inventories

     (4,976)         (1,675)    

Income on investments in associates and joint ventures

     4,280         1,535    

Effect of tax rate change

     -         (1,632)   (2) 

Effect of the regularization regime for the dispute associated to cost deduction for hydrocarbon wells abandonment

     1,948   (3)      -    

Miscellaneous

     421         (123)    
  

 

 

   

 

 

 

Income tax

     (21,666)         (9,926)    
  

 

 

   

 

 

 

 

(1)

Includes the effect of tax inflation adjustments.

(2)

Corresponds to the remeasurement of deferred income tax at the estimated rate at the date of it reversal. See Notes 2.b.15) and 35.e.1) to the annual consolidated financial statements.

(3)

See Note 17.

(4)

Corresponds to the average projected tax rate of YPF and its subsidiaries in compliance with amendment to Law No. 27,630. See Note 35.e.1) to the annual consolidated financial statements.


Table of Contents

 

22

 

English translation of the condensed interim consolidated financial statements originally filed in Spanish with the CNV.

In case of discrepancy, the condensed interim consolidated financial statements filed with the CNV prevail over this translation.

 

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2022 AND COMPARATIVE INFORMATION (UNAUDITED)

 

18.INCOME TAX (cont.)

  

 

LOGO

 

Furthermore, breakdown of tax payable and deferred as of March 31, 2022 and December 31, 2021 is as follows:

 

     March 31, 2022     December 31, 2021
         Non-current             Current             Non-current             Current      

  Income tax payable

     5,398     (2)      12,189     (1)      3,026     (2)      1,336     (1) 

 

(1)

Includes 1,078 and 513 corresponding to the 12 installments of the regularization regimes associated with the dispute over the cost deduction for hydrocarbon well abandonment as of March 31, 2022 and December 31, 2021, respectively. See Note 16 to the annual consolidated financial statements and Note 17 to these condensed interim consolidated financial statements. Additionally, it includes the provision associated with the charge of current income tax net of unused tax credits and existing tax loss carryforwards.

(2)

Includes 5,382 and 3,009 corresponding to the remaining installments of the aforementioned regimes as of March 31, 2022 and December 31, 2021, respectively.

 

     March 31,
            2022             
     December 31,
            2021             
 

Deferred tax assets

     

Provisions and other non-deductible liabilities

     39,125          39,028    

Tax losses carryforward

     514          2,763    

Miscellaneous

     1,692          1,637    
  

 

 

    

 

 

 

Total deferred tax assets

     41,331          43,428    
  

 

 

    

 

 

 

Deferred tax liabilities

     

Property, plant and equipment

     (157,355)          (156,554)    

Adjustment for tax inflation

     (61,324)          (66,056)    

Miscellaneous

     (5,697)          (4,076)    
  

 

 

    

 

 

 

Total deferred tax liabilities

     (224,376)          (226,686)    
  

 

 

    

 

 

 

Total Net deferred tax (1)

     (183,045)          (183,258)    
  

 

 

    

 

 

 

 

(1)

Includes (2,646) and (3,751) as of March 31, 2022 and December 31, 2021, respectively, corresponding to adjustment for inflation of the opening deferred liability of subsidiaries with the Peso as functional currency which was charged to Other comprehensive income.

The Group’s tax loss carry-forwards not recognized as of March 31, 2022 amounted to 2,445, maturing between 2021 and 2025.

As of March 31, 2022 and December 31, 2021 the Group has classified as deferred tax assets 1,625 and 1,921, respectively, and as deferred tax liability 184,670 and 185,179, respectively, all of which arise from the net deferred tax balances of each of the separate companies included in these condensed interim consolidated financial statements.

As of March 31, 2022 and December 31, 2021, the causes that generate charges to “Other comprehensive income”, did not create temporary differences for income tax.

 

19.

TAXES PAYABLE

 

    March 31, 2022      December 31, 2021  
        Non-current              Current              Non-current              Current      

VAT

    -          10,644          -          2,002    

Withholdings and perceptions

    -          5,036          -          3,251    

Royalties

    -          7,874          -          6,304    

Tax on Fuels

    -          8,618          -          711    

IIBB

    -          673          -          322    

Miscellaneous

    203          1,808          201          2,081    
 

 

 

    

 

 

    

 

 

    

 

 

 
    203          34,653          201          14,671    
 

 

 

    

 

 

    

 

 

    

 

 

 

 

20.

SALARIES AND SOCIAL SECURITY

 

    March 31, 2022      December 31, 2021  
        Non-current              Current              Non-current              Current      

Salaries and social security

    -          5,974          -          4,955    

Bonuses and incentives provision

    -          2,943          -          6,874    

Vacation provision

    -          8,356          -          7,196    

Other employee benefits (1)

    2,299          4,699          3,262          4,434    
 

 

 

    

 

 

    

 

 

    

 

 

 
    2,299          21,972          3,262          23,459    
 

 

 

    

 

 

    

 

 

    

 

 

 

 

(1)

Includes the voluntary retirement plan executed by the Group.

 

21.

LEASE LIABILITIES

 

    March 31, 2022      December 31, 2021  
        Non-current              Current              Non-current              Current      

Lease liabilities

    26,708          30,960          28,335          27,287    


Table of Contents

 

23

 

English translation of the condensed interim consolidated financial statements originally filed in Spanish with the CNV.

In case of discrepancy, the condensed interim consolidated financial statements filed with the CNV prevail over this translation.

 

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2022 AND COMPARATIVE INFORMATION (UNAUDITED)

   LOGO

21. LEASE LIABILITIES (cont.)

 

The evolution of the Group’s leases liabilities for the three-month period ended March 31, 2022 and for the fiscal year ended December 31, 2021, are as follows:

 

         Lease liabilities      

Balance as of December 31, 2020

                 46,270    
  

 

 

 

Leases increase

     27,745    

Leases decrease

     (4,352)    

Payments

     (28,526)    

Financial accretion

     5,331    

Exchange and translation differences, net

     9,213    

Result from net monetary position (1)

     (59)    
  

 

 

 

Balance as of December 31, 2021

     55,622    
  

 

 

 

Leases increase

     4,602    

Leases decrease

     -    

Payments

     (9,075)    

Financial accretion

     2,051    

Exchange and translation differences, net

     4,465    

Result from net monetary position (1)

     3    
  

 

 

 

Balance as of March 31, 2022

     57,668    
  

 

 

 

 

(1)

Includes the adjustment for inflation of opening balances of lease liabilities of subsidiaries with the Peso as functional currency, which was charged to Other comprehensive income and the adjustment for inflation of the period, which was charged to results.

22. LOANS

 

                               March 31, 2022      December 31, 2021  
             Interest rate (1)              Maturity      Non-current      Current      Non-current      Current  

Pesos:

                     

NO (3)

     16.50%       -        40.98%       2022-2024        7,586          5,975          6,897          5,700    

Loans

     47.66%       -        57.20%       2022-2024        14,519          8,484          13,955          7,220    

Account overdraft

     0.00%       -        0.00%       2022        -          238          -          794    
            

 

 

    

 

 

    

 

 

    

 

 

 
               22,105          14,697          20,852          13,714    
            

 

 

    

 

 

    

 

 

    

 

 

 

Currencies other than the Peso:

                     

NO (2)

     0.00%       -        10.00%       2022-2047        679,985          35,477          636,822          55,517    

Export pre-financing

     2.20%       -        5.50%       2022-2023        1,358          1,669          1,256          4,358    

Imports financing

     5.88%       -        5.88%       2022        -          292          -          330    

Loans

     0.87%       -        17.99%       2022-2027        41,739          5,817          11,605          12,761    
            

 

 

    

 

 

    

 

 

    

 

 

 
               723,082          43,255          649,683          72,966    
            

 

 

    

 

 

    

 

 

    

 

 

 
                           745,187                      57,952                      670,535                      86,680    
            

 

 

    

 

 

    

 

 

    

 

 

 

 

(1)

Nominal annual interest rate as of March 31, 2022.

(2)

Includes 66,805 and 61,811 as of March 31, 2022 and December 31, 2021, respectively, of nominal value of NO that will be canceled in pesos at the applicable exchange rate in accordance with the terms of the series issued.

(3)

Includes 4,602 of nominal value of NO that will be canceled in dollars at the applicable exchange rate according to the conditions of the issued series.

Set forth below is the evolution of the loans for three-month period ended March 31, 2022 and for the fiscal year ended December 31, 2021:

 

     Loans  

Balance as of December 31, 2020

     678,306    
  

 

 

 

Proceeds from loans

     97,420    

Payments of loans

     (161,016)    

Payments of interest

     (58,454)    

Accrued interest (1)

     66,950    

Net exchange differences and translation

     136,280    

Result from debt exchange (2)

     (1,855)    

Result from net monetary position (3)

     (416)    
  

 

 

 

Balance as of December 31, 2021

     757,215    
  

 

 

 

Proceeds from loans

     37,918    

Payments of loans

     (49,729)    

Payments of interest

     (18,474)    

Accrued interest (1)

     18,104    

Net exchange differences and translation

     58,232    

Result from net monetary position (3)

     (127)    
  

 

 

 

Balance as of March 31, 2022

                     803,139    
  

 

 

 

 

(1)

Includes capitalized financial costs.

(2)

See Note 21 to the annual consolidated financial statements.

(3)

Includes adjustment for inflation of opening balances of loans in subsidiaries with the Peso as functional currency which was charged to Other comprehensive income and the adjustment for inflation of the fiscal year, which was charged to results.


Table of Contents

 

24

 

English translation of the condensed interim consolidated financial statements originally filed in Spanish with the CNV.

In case of discrepancy, the condensed interim consolidated financial statements filed with the CNV prevail over this translation.

 

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2022 AND COMPARATIVE INFORMATION (UNAUDITED)

   LOGO

22. LOANS (cont.)

 

Details regarding the NO of the Group are as follows:

 

                                   March 31, 2022      December 31, 2021  
Month    Year    Principal
Value
     Class           Interest rate (1)     Principal Maturity          Non-current                  Current                  Non-current              Current      

YPF

                                

-

   1998    US$          15        -          Fija       10.00     2028        1,643          69          1,521          26    

April, February, October

   2014/15/16    US$          1,522        Clase XXVIII          Fija       8.75     2024        67,217          3,173          62,193          28,598    

September

   2014    $          1,000        Clase XXXIV          BADLAR + 0,1%       34.27     2024        334          171          334          213    

April

   2015    US$          1,500        Clase XXXIX          Fija       8.50     2025        125,523          1,838          116,140          4,167    

October

   2015    $          2,000        Clase XLIII          BADLAR       34.17     2023        667          881          667          755    

May

   2017    $          4,602        Clase LII          Fija       16.50     2022        -          4,902          -          4,712    

July, December

   2017    US$          1,000        Clase LIII          Fija       6.95     2027        90,778          1,164          83,658          2,531    

December

   2017    US$          750        Clase LIV          Fija       7.00     2047        58,691          1,207          54,702          154    

June

   2019    US$          500        Clase I          Fija       8.50     2029        44,031          988          40,740          39    

June

   2020    US$          78        Clase XII          Fija       1.50     2022        -          8,310          -          7,688    

July

   2020    US$          543        Clase XIII          Fija       8.50     2025        18,729          9,395          21,652          9,353    

December, February

   2020/21    US$          143        Clase XIV          Fija       2.00     2023        15,888          24          14,701          22    

February

   2021    US$          775        Clase XVI          Fija       4.00     2026        76,847          7,139          75,944          899    

February

   2021    US$          748        Clase XVII          Fija       2.50     2029        79,420          1,707          73,484          18    

February

   2021    US$          576        Clase XVIII          Fija       1.50     2033        58,602          12          52,658          1,015    

February

   2021    $          4,128        Clase XIX          Fija       3.50     2024        6,585          21          5,896          20    

July

   2021    US$          384        Clase XX          Fija       5.75     2032        42,616          451          39,429          1,007    
                       

 

 

    

 

 

    

 

 

    

 

 

 
                                  687,571                  41,452                  643,719                  61,217    
                       

 

 

    

 

 

    

 

 

    

 

 

 

 

(1)

Nominal annual Interest rate as of March 31, 2022.


Table of Contents

 

25

 

English translation of the condensed interim consolidated financial statements originally filed in Spanish with the CNV.

In case of discrepancy, the condensed interim consolidated financial statements filed with the CNV prevail over this translation.

 

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2022 AND COMPARATIVE INFORMATION (UNAUDITED)

   LOGO

 

23. OTHER LIABILITIES

 

     March 31, 2022      December 31, 2021  
         Non-current              Current              Non-current              Current      

Extension of concessions

     843          891          823          824    

Liabilities for contractual claims(1)

     91          778          145          2,618    

Miscellaneous

     -          84          -          26    
  

 

 

    

 

 

    

 

 

    

 

 

 
                 934                          1,753                      968                      3,468    
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(1)

See Note 34.d) to the annual consolidated financial statements.

24. ACCOUNTS PAYABLE

 

     March 31, 2022      December 31, 2021  
         Non-current              Current              Non-current              Current      

Trade payable and related parties(1)

     779          207,499          752          193,159    

Guarantee deposits

     53          702          44          677    

Payables with partners of JO and other agreements

     91          1,185          92          6,203    

Miscellaneous

     -          1,692          -          1,512    
  

 

 

    

 

 

    

 

 

    

 

 

 
                 923                      211,078                      888                      201,551    
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(1)

For more information about related parties, see Note 37.

25. REVENUES