YPF YPF Sociedad Anonima

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  ☒

YPF SOCIEDAD ANONIMA

CONDENSED INTERIM CONSOLIDATED

FINANCIAL STATEMENTS AS OF MARCH 31, 2022

AND COMPARATIVE INFORMATION (UNAUDITED)

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)

 

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

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)

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)

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                    

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)

 

		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                

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)

 

						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)

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

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)

 

		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

PABLO GERARDO GONZÁLEZ

President

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)

 

		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

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

PABLO GERARDO GONZÁLEZ

President

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)

 

		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

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

PABLO GERARDO GONZÁLEZ

President                    

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)

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:

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.

Organization of the business

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

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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)

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

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)

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: