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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 August, 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  ☒

 

 

 


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Basis of Presentation

From 3Q20 onwards, the Earnings Release is expressed in U.S. dollars to facilitate the reading of results. YPF has defined the U.S. dollar as its functional currency and subsidiaries having the Argentine Peso as functional currency were adjusted for inflation, corresponding to a hyperinflationary economy, in accordance with IAS guidelines. Unless otherwise indicated, the calculation of all Income Statement figures in U.S. dollars are calculated as the sum of: (1) YPF S.A. individual financial results expressed in Argentine pesos divided by the average exchange rate of the period; and (2) the financial results of YPF S.A.’s subsidiaries expressed in Argentine pesos divided by the exchange rate at the end of period. Cash Flow items were converted to U.S. dollars using the average exchange rate for each period; whereas Balance Sheet items were converted to U.S. dollars using the end of period exchange rate for each period. The accumulated financial information presented in this document is calculated as the sum of the quarters for each period.

 

Summary Consolidated Financials

Unaudited Figures, in US$ million

   2Q21     1Q22      2Q22      Y/Y Δ     Q/Q Δ     1H21     1H22      Y/Y Δ  

Revenues

     3,349       3,635        4,855        44.9     33.5     5,997       8,490        41.6

EBITDA

     1,146       1,035        1,545        34.8     49.2     1,971       2,580        30.9

Adjusted EBITDA

     1,084       972        1,500        38.4     54.3     1,851       2,473        33.6

Operating income before impairment of assets

     310       380        850        174.0     123.9     388       1,229        217.0

Operating income

     310       380        850        174.0     123.9     388       1,229        217.0

Net income before impairment of assets

     (492     248        798        N/A       221.5     (517     1,046        N/A  

Net income

     (492     248        798        N/A       221.5     (517     1,046        N/A  

EPS

     (1.22     0.64        2.01        N/A       214.1     (1.28     2.65        N/A  

Capex

     580       748        932        60.6     24.7     1,067       1,679        57.3

FCF

     311       391        318        2.2     -18.7     595       709        19.0

Cash and cash equivalents

     935       1,329        1,243        32.9     -6.5     935       1,243        32.9

Total debt

     7,434       7,241        7,085        -4.7     -2.2     7,434       7,085        -4.7

EBITDA = Operating income + Depreciation of PP&E + Depreciation of the right of use assets + Amortization of intangible assets + Unproductive exploratory drillings + (Reversal) / Deterioration of PP&E. Adjusted EBITDA = EBITDA that excludes IFRS 16 and IAS 29 effects +/- one-off items. EPS attributable to shareholders of the parent company (basic and diluted).

FCF = Cash flow from Operations less capex (Investing activities), M&A (Investing activities), and interest and leasing payments (Financing activities).

1. MAIN HIGHLIGHTS

 

   

Adjusted EBITDA reached a quarterly mark of US$1.5 billion, expanding 54% sequentially and 38% y/y, primarily on the back of improved pricing across our business segments, despite further cost increases.

 

   

Total hydrocarbon production averaged 504 Kboe/d during the quarter (-0.4% q/q and +9.2% y/y; oil production +1.4% q/q and +7.2% y/y), increasing to 510 Kboe/d during July as drilling and completion activity during the quarter led to further increases in total production after 2Q22.

 

   

Shale production continued reaching new record levels, while we continue making progress on operational efficiencies setting new records on fracking and drilling speeds, leading to a further reduction in the development cost at our Core Hub operations. In that sense, we continued delivering a remarkable expansion in our shale oil and shale gas production of 48% and 80% y/y, respectively.

 

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Local fuels’ demand remained very strong, standing 12.5% above pre-pandemic levels of 2Q19, led by domestic sales of diesel which grew by 11% q/q, reaching a historical quarterly record.

 

   

Higher processing levels at our refineries contributed to meeting the historical demand during the quarter, complemented through imported volumes of gasoline and diesel (which although still above historical averages, came down by 33% q/q), a greater portion of biofuels in the blend and inventory consumption. Nevertheless, the record diesel demand caused some disruptions in the normal supply to customers in a context of local logistics constraints.

 

   

Total CAPEX increased by 25% q/q, reaching US$932 million in 2Q22, accumulating US$1.679 million during the first half of the year (+57% y/y), now estimated to surpass initial guidance by about 10%.

 

   

Free cash flow was positive for the ninth consecutive quarter at US$310 million – accumulating US$701 million during 6M22 –, permitting a further reduction in our net debt to US$5,843 million and taking the net leverage ratio down to 1.3x.

 

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2. ANALYSIS OF CONSOLIDATED RESULTS

 

Consolidated Revenues Breakdown

Unaudited Figures, in US$ million

   2Q21      1Q22      2Q22      Y/Y Δ     Q/Q Δ     1H21      1H22      Y/Y Δ  

Diesel

     1,111        1,283        1,775        59.7     38.3     2,032        3,058        50.5

Gasoline

     581        817        880        51.5     7.8     1,195        1,697        42.1

Natural gas as producers (third parties)

     394        327        444        12.8     36.0     653        771        18.0

Other

     821        748        1,069        30.1     42.9     1,373        1,816        32.3
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Total Domestic Market

     2,907        3,175        4,168        43.4     31.3     5,253        7,343        39.8
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Jet fuel

     26        85        122        369.7     43.4     50        207        313.5

Grain and flours

     230        113        304        32.4     168.8     344        417        21.5

Crude oil

     11        5        0        N/A       N/A       17        5        -68.5

Petchem & Other

     176        257        261        48.2     1.4     334        518        55.1
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Total Export Market

     442        461        687        55.3     49.1     744        1,148        54.2
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Total Revenues

     3,349        3,635        4,855        44.9     33.5     5,997        8,490        41.6
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

During 2Q22, revenues totaled US$ 4,855 million, increasing by 33.5% q/q and 44.9% y/y. On a sequential basis, this growth was primarily the result of higher prices on fuels’ retail domestic sales (about 50% of total revenues) and, even more pronounced, on wholesale domestic fuels (about 10% of total revenues), higher natural gas prices due to the seasonal adjustments within the Plan Gas contracts and products that correlate closely with international prices, such as lubricants, jet fuel, propane, petrochemicals and virgin naphta (about 20% of total revenues) and higher volumes dispatched of diesel.

 

   

Total diesel revenues in the domestic market (retail and wholesale) – 36.6% of total revenues – increased by 38.3% sequentially driven by an increase of 22.9% in prices and 12.5% of volumes sold. The diesel volume dispatched in 2Q represented the highest mark in any given quarter and the secuential growth was mainly caused by seasonal demand from Agro business; the rebound of activity in certain industrial segments, such as mining and transportation; and higher demand from neighboring countries.

 

   

Gasoline sales in the local market – 18.1% of total sales – increased by 7.8% q/q, driven by a rise of 11.5% q/q in prices at the pump, partially offset by a decrease in volumes sold of 3.3% due to the higher seasonal summer demand of the first quarter.

 

   

Natural gas revenues as producers sold to third parties in the domestic market represented 9.1% of total sales, increasing by 36.0% q/q mainly due to higher average realization prices of 29.7% driven by the seasonality factor included in the Plan GasAR between May and September, while volumes rose by 4.9%.

 

   

Other domestic sales increased by 42.9% q/q mainly due to higher seasonal sales of fertilizers and natural gas to the retail distribution segment -through our subsidiary Metrogas- and also driven by, higher prices of international-priced products.

 

   

Export revenues rose by 49.1% q/q mainly due to higher exports of grain and flours, on the back of the greater seasonal demand, jet fuel and fuel oil among others, all benefiting from higher international prices.

 

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Consolidated Costs Breakdown

Unaudited Figures, in US$ million

   2Q21     1Q22     2Q22     Y/Y Δ     Q/Q Δ     1H21     1H22     Y/Y Δ  

Lifting cost

     (460     (534     (610     32.7     14.3     (871     (1,143     31.3

Other Upstream

     (101     (56     (85     -15.8     52.1     (160     (141     -11.7

Refining & Logistics

     (255     (289     (344     34.9     19.0     (484     (633     30.8

Other Downstream

     (112     (108     (148     32.0     36.9     (210     (255     21.9

G&P, Corpo. & Other

     (87     (126     (171     96.0     36.2     (152     (297     95.5
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total OPEX

     (1,015     (1,112     (1,358     33.8     22.1     (1,876     (2,470     31.7
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Depreciation & Amortization

     (835     (651     (693     -17.0     6.4     (1,582     (1,344     -15.1

Royalties

     (187     (216     (242     29.1     12.1     (358     (457     27.6

Other

     (139     (123     (186     34.6     52.1     (232     (309     33.1
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Other Costs

     (1,161     (989     (1,121     -3.4     13.3     (2,173     (2,110     -2.9
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Fuels imports

     (95     (334     (346     265.3     3.5     (170     (680     301.0

Crude oil purchases to third parties

     (248     (256     (310     25.0     21.1     (500     (566     13.1

Biofuel purchases

     (90     (167     (253     182.9     51.5     (198     (421     112.6

Non-oil agro purchases

     (322     (196     (503     56.1     156.7     (440     (698     58.6

Other purchases

     (195     (191     (313     60.6     64.1     (361     (504     39.8

Stock variations

     86       3       210       144.6     7028.6     111       213       91.8
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Purchases & Stock Variations

     (863     (1,141     (1,515     75.5     32.8     (1,557     (2,655     70.5
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Other operating results, net

     (1     (14     (12     2219.8     -15.4     (4     (25     623.8

Impairment of assets

     —         —         —         N/A       N/A       —         —         N/A  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating Costs + Purchases + Impairment of Assets

     (3,039     (3,256     (4,005     31.8     23.0     (6,295     (7,261     15.3
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Stock variations include price effects by US$62 million in 2Q21, US$(18) million for 1Q22 and US$131 million for 2Q22.

In terms of costs, operating expenses (OPEX) in the second quarter totaled US$ 1,358 million, representing a rise of 22.1% compared to 1Q22. This was mainly due to the overall accelerated inflationary environment and the unions wage agreements closed in April, combined with higher pulling and fuel sales transportation activity and increased energy costs. These factors pushed our cost structure higher in U,S. dollar terms given the context of a slow pace of currency devaluation. In the same line, total OPEX increased 33.8% y/y, driven by the inflationary process described above and an overall growth across our business, considering that activity in 2Q21 was still affected by the effects of the pandemic.

Total Purchases and Stock Variations increased by 32.8% sequentially. The q/q increase in purchases, a category highly correlated with demand levels for refined products, was mainly driven by the following factors:

 

   

Gasoline and diesel imports increased by 3.3% q/q, primarily due to higher prices by 53.5%, partially offset by a decrease in volumes by 32.7%, accounting for a 8.1% of total fuels sales versus the 12.7% of the previous quarter. This decrease in fuel imports volumes, coupled with an increased demand, was possible by the expansion in the processing levels at our refineries, higher biofuel purchases and inventory consumption.

 

   

Crude oil purchases grew by 21.1% q/q led by higher volume of 6.8% and higher prices of 13.4% as price increases in local fuels during the quarter made it possible to improve prices of local crude. As a result, refinery daily processing levels showed a sequential increase of 1.8%.

 

   

Non-oil agro purchases increased by 156.7% sequentially, mainly due to the soaring seasonal demand of grains and flours, aligned with the higher sales of non-oil agro products.

 

   

Biofuel purchases rose by 51.5% due to an increase of 82.0% and 25.4% in biodiesel and bioethanol respectively. Biodiesel variation can be explained through the increase in diesel demand during the quarter and a higher biodiesel blend stated by the government plus a temporary additional increase for two months beginning in mid-June. Moreover, prices rose by 18.3% for biodiesel and 22.2% for bioethanol.

In terms of our inventories, a positive stock variation of US$210 million was recorded during 2Q22, mainly because of a growth in non oil agro stock volumes, as well as an upward trend in the replacement cost of our inventories; partially offset by a decrease in diesel and gasoline stocks.

 

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Consolidated Net Income Breakdown

Unaudited Figures, in US$ million

   2Q21     1Q22     2Q22     Y/Y Δ     Q/Q Δ     1H21     1H22     Y/Y Δ  

Operating income

     310       380       850       174.0     123.9     388       1,229       2  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Interests in companies and joint ventures

     15       115       133       800.1     15.9     73       248       241.9

Financial results, net

     (116     (44     (4     -96.4     -90.4     (165     (48     -71.0
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Earnings before tax

     209       451       979       368.4     117.0     296       1,430       4  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income tax

     (701     (203     (181     -74.2     -10.7     (813     (384     -52.8
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net Income

     (492     248       798       N/A       221.5     (517     1,046       N/A  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net Income before impairment of assets

     (492     248       798       N/A       221.5     (517     1,046       N/A  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net financial results for 2Q22 represented a US$4 million loss compared to the loss of US$44 million posted in 1Q22. This was primarily led by higher net FX gains due to higher currency devaluation q/q.

As a result of the operating and financial evolution, earnings before taxes for 2Q22 reached positive US$979 million, increasing more than 100% q/q, while net income for the quarter resulted in a gain of US$798 million, compared to the gain of US$248 million in 1Q22.

 

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3. EBITDA AND ADJUSTED EBITDA RECONCILIATION

Adjusted EBITDA for 2Q22 totaled US$1,500 million, showing an increase of 54.3% sequentially and growing 38.4% against 2Q21. The sequential improvement was partially supported by higher realization prices across the board, including higher prices of diesel and gasoline, natural gas and other international-priced products, the incremental oil production and processing levels, partially offset by higher OPEX.

The below tables display the reconciliation between EBITDA and Adjusted EBITDA for the quarter:

 

Reconciliation of Adjusted EBITDA

Unaudited Figures, in US$ million

   2Q21     1Q22     2Q22     Y/Y Δ     Q/Q Δ     1H21     1H22     Q/Q Δ  

Net Income

     (492     248       798       N/A       221.5     (517     1,046       N/A  

Financial results, net

     116       44       4       -96.4     -90.4     165       48       -71.0

Interests in companies and joint ventures

     (15     (115     (133     800.1     15.9     (73     (248     241.9

Income tax

     701       203       181       -74.2     -10.7     813       384       -52.8

Unproductive exploratory drillings

     1       5       2       323.8     -48.3     1       7       1144.2

Depreciation & amortization

     835       651       693       -17.0     6.4     1,582       1,344       -15.1

Impairment of assets

     —         —         —         N/A       N/A       —         —         N/A  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA

     1,146       1,035       1,545       34.8     49.2     1,971       2,580       30.9
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Leasing

     (63     (65     (63     0.2     -1.9     (124     (128     3.3

Other adjustments

     2       2       19       1030.7     1011.2     4       20       408.7
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

     1,084       972       1,500       38.4     54.3     1,851       2,473       33.6
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

EBITDA breadkdown by segment

Unaudited Figures, in US$ million

   Upstream     Downstream     Gas & Energy     Corporate &
Other
    Consolid.
Adjustments
    Total  

Operating income

     337       625       40       (94     (58     850  

Depreciation & amortization

     506       138       21       29       (1     693  

Unproductive exploratory drillings

     2       —         —         —         —         2  

Impairment of assets

     —         —         —         —         —         —    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA

     845       763       61       (65     (59     1,545  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Leasing

     (39     (19     (6     —         —         (63

Other adjustments

     1       1       (1     18       —         19  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

     807       745       54       (47     (59     1,500  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

The main variations of Adjusted EBITDA for the quarter by business segment are displayed on the below chart:

 

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4. ANALYSIS OF RESULTS BY BUSINESS SEGMENT

4.1. UPSTREAM

 

Upstream Operating data

Unaudited Figures

   2Q21      1Q22      2Q22      Y/Y Δ     Q/Q Δ     1H21      1H22      Y/Y Δ  

Net Production Breakdown

                     
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Crude Production (Kbbld)

     210,2        222,1        225,3        7,2     1,4     208,9        223,8        7,1
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Conventional

     157,0        148,7        148,3        -5,6     -0,3     157,7        148,5        -5,8

Shale

     49,8        70,4        73,9        48,3     5,0     48,1        72,1        49,9

Tight

     3,3        3,1        3,2        -4,5     4,5     3,2        3,1        -0,9
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

NGL Production (Kbbld)

     36,6        44,2        41,7        14,0     -5,7     33,1        43,0        30,0
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Conventional

     18,3        15,8        16,8        -8,4     6,4     17,3        16,3        -6,0

Shale

     16,5        26,9        23,7        43,5     -11,9     14,3        25,3        77,2

Tight

     1,8        1,6        1,3        -29,0     -19,1     1,5        1,4        -5,3
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Gas Production (Mm3d)

     34,1        38,1        37,6        10,4     -1,2     32,9        37,8        14,9
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Conventional

     17,7        15,5        15,2        -14,1     -1,9     17,9        15,3        -14,1

Shale

     8,6        15,3        15,5        80,5     1,2     7,5        15,4        105,8

Tight

     7,8        7,3        7,0        -10,8     -4,5     7,6        7,1        -6,1
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Total Production (Kboed)

     461,1        505,8        503,7        9,2     -0,4     449,1        504,7        12,4
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Conventional

     286,6        261,9        260,6        -9,1     -0,5     287,3        261,3        -9,1

Shale

     120,2        193,3        194,7        62,1     0,7     109,3        194,0        77,5

Tight

     54,3        50,6        48,3        -11,0     -4,4     52,5        49,4        -5,8

Average realization prices

                     

Crude Oil (USD/bbl)

     51,6        58,9        65,1        26,2     10,6     50,9        62,0        21,9

Natural Gas (USD/MMBTU) (*)

     3,9        3,0        3,9        0,7     29,6     3,4        3,4        1,1

 

(*)

Average realization price for third parties

Total hydrocarbon production remained almost flat sequentially, with a continuous growing trend in crude oil production of 1.4%, a slight decline in natural gas production and a decrease of 5.7% in NGL production primarily due to a temporary shutdown of non-operated plant of “Aguada Pichana Este” fields during April, and evacuation constraints in La Calera area that will be lifted during the course of August. On a y/y basis, we achieved a growth of 9.2% driven by an outstanding expansion from our shale blocks, with shale oil increasing by 48.3%, while shale gas expanded 80.5%. As a result, shale accounted for 38.7% of our total consolidated production in 2Q22, growing from 26.1% only a year ago.

Average daily crude oil production increased by 1.4% q/q, driven by a 5.0% growth in shale, which was slightly offset by a 0.3% contraction in our conventional fields, where positive results in tertiary recovery were not enough to fully mitigate the natural decline rate of our mature fields. In that sense, tertiary recovery at Manantiales Behr recorded an increase of 5.0% sequentially, reaching a new record high in total oil production of 26.4 kbbl/d during June, supported by 8 Polymer Injection Units (PIUs) in operation to expand EOR (Enhanced Oil Recovery) production in the area, one of which was commissioned during this quarter. Currently, tertiary recovery represents about 26% of Manantiales Behr total production. In addition, as part of our strategy to expand tertiary recovery, we continued the EOR Pilot Project in El Trebol area, using the recovery methodology tested at Manantiales Behr, with very promising results.

Separately, with regards to our unconventional production, it is worth highlighting that during the second quarter we completed the drilling of a new 4-well PAD in Loma Campana, which contains the 3 largest wells in Vaca Muerta at over 4,400 meters of horizontal length. In addition, we we drilled a second PAD in the Aguada del Chañar block, which is our newest development within our shale oil core hub, fully owned by YPF.

 

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On the natural gas side, average daily production decreased 1.2% q/q, driven by a contraction in our conventional fields by 1.9% as a result, primarily, of the natural decline of Loma la Lata and Estación Fernández Oro assets and lower demand on the back of milder weather conditions that sligthy affected May’s production, partially offset by an increase in shale production of 1.2%.

In terms of midstream oil, we remained focused on the works needed to de-bottlenecking the continuous expansion of Vaca Muerta. By April 2022, we completed, through our subsidiary Oldelval, the revamping of the 4 pumping stations within the pipeline that connects Vaca Muerta to Puerto Rosales and we continued adding polymers as drag-reducing agents with the aim of increasing the pipeline capacity by reducing friction. As a result, current evacuation capacity to Puerto Rosales is about 44 km3/d, and enables the crude oil production to be evacuated without any capacity restrictions.

Oil and gas realization prices during the quarter increased q/q. Our average realization oil price increased by 10.6% on a sequential basis which was made possible by local fuel price adjustments implemented during the quarter, to about US$65.1 per barrel, only partially benefiting from the rally in international prices, as local crude continued being negotiated between local producers and refiners in a way to smooth out the impact of the volatility in international reference prices into local pump prices. On the gas side, the average price for third parties for the quarter was US$3.9/MMBTU, rising by 29.6% q/q supported by the seasonality factor included in the Plan GasAR between May and September.

In 2Q22, total segment revenues reached US$1,749 million, increasing by 13.6% compared to 1Q22 and by 26.2% y/y.

 

   

Crude oil revenues expanded by 9.6% q/q mainly driven by the sequential growth of 10.6% in prices described above.

 

   

Natural gas revenues went up by 25.8% q/q, mainly due the seasonal price increase of 29.6% detailed previously, partially offset by a decrease in volumes by 2.9%.

 

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Upstream Financials

Unaudited Figures, in US$ million

   2Q21     1Q22     2Q22     Y/Y Δ     Q/Q Δ     1H21     1H22     Y/Y Δ  

Crude oil

     971       1,152       1,263       30.1     9.6     1,921       2,415       25.7

Natural gas

     423       387       487       14.9     25.8     709       873       23.2

Other

     (9     1       (1     -93.3     N/A       3       0       -90.3
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Revenues

     1,385       1,539       1,749       26.2     13.6     2,633       3,288       24.9
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Depreciation & amortization

     (663     (476     (506     -23.7     6.2     (1,244     (981     -21.1

Lifting cost

     (460     (534     (610     32.7     14.3     (871     (1,144     31.3

Royalties

     (187     (213     (239     27.5     12.3     (358     (451     25.9

Exploration expenses

     (8     (10     (13     53.3     24.2     (10     (23     129.3

Other

     (79     (88     (45     -43.6     -49.3     (143     (133     -7.0
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income before impairment of assets

     (12     219       337       N/A       54.1     7       556       8143.5
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Impairment of assets

     —         —         —         N/A       N/A       —         —         N/A  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     (12     219       337       N/A       54.1     7       556       8143.5
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Depreciation & amortization

     663       476       506       -23.7     6.2     1,244       981       -21.1

Unproductive exploratory drillings

     1       5       2       323.8     -48.3     1       7       1144.2

Impairment of assets

     —         —         —         N/A       N/A       —         —         N/A  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA

     652       699       845       29.7     20.8     1,252       1,545       23.4
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Leasing

     (38     (37     (39     1.1     3.4     (77     (76     -1.3

Other adjustments

     0       (0     (1     N/A       235.8     0       (1     N/A  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

     614       662       807       31.6     21.9     1,175       1,469       25.1
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Capex

     480       606       730       52.0     20.5     905       1,336       47.6
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
                

Unit Cash Costs

Unaudited Figures, in US$/boe

   2Q21     1Q22     2Q22     Y/Y Δ     Q/Q Δ     1H21     1H22     Y/Y Δ  

Lifting Cost

     11.0       11.7       13.3       21.4     13.4     10.7       12.5       16.9

Royalties and other taxes

     4.8       5.2       5.7       17.9     8.9     4.8       5.4       12.6

Other Costs

     2.6       1.5       2.1       -18.7     40.1     2.2       1.8       -16.3
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Cash Costs (US$/boe)

     18.3       18.4       21.0       14.8     14.3     17.7       19.7       11.7
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

In terms of our cost structure on a per unit basis, total cash costs increased by 14.3% sequentially and 14.8% y/y, due to the following:

 

   

Lifting costs increased by 14.3% q/q mainly due to the overall accelerated inflationary process including the unions wage agreements closed in April, higher pulling activity and increased energy costs, combined with a slower pace of local currency depreciation. Compared to 2Q21, the increase was 14.8%, driven by the previously mentioned inflationary process and considering that activity in 2Q21 was still affected by the effects of the pandemic. When breaking down our lifting costs by type of operation in 2Q22, our unconventional activities averaged US$3.8 per BOE, a decrease of 1.1% q/q while our conventional activities averaged US$20.5 per BOE, a rise of 16.4% q/q. Lifting cost within our shale hub core achieved a further reduction from 3.7 US$/boe in 1Q22 to 3.5 US$/boe in 2Q22.

 

   

Royalties within the upstream segment, and other taxes increased 8.9% sequentially, where natural gas royalties increased by 26.1%, and by 6.4% for crude oil, mainly due to higher realization prices.

 

   

The increase in “Other Costs” was mainly explained by some extraordinary charges recorded during 2Q22.

In summary, adjusted EBITDA for the upstream segment reached US$807 million in the quarter. This marked a growth of 21.9% q/q and a 31.6% increase compared to 2Q21.

 

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CAPEX:

During 2Q22 upstream capex represented US$730 million, increasing 20.5% sequentially and 52.0% y/y. Out of the total, 71% was destined to drilling and workover, 26% to new facilities or the expansion of existing ones, and the remaining 3% to exploration and other upstream activities.

During this quarter, drilling and workover activities continued as expected, completing a total of 59 new wells in our operated blocks. Regarding activity within our unconventional upstream operations, during this quarter, we completed a total of 29 new horizontal wells in our operated blocks, 23 of shale oil and 6 of shale gas. In addition, it is worth highlighting that in Bandurria Sur block, we continued with the construction of a crude oil treatment plant, which will become the third plant within our oil core hub operations, and the expansion of the crude oil treatment plant in La Amarga Chica area.

On the conventional side, the activity continued to be focused on integrity investments in order to reduce risks and gain reliability in certain facilities as well as mobilizing resources into tertiary recovery, where we continued focusing on the main project at Manantiales Behr and starting pilots in the areas of El Trébol, Los Perales and Cañadón León.

 

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4.2. DOWNSTREAM

 

Downstream Operating data

Unaudited Figures

   2Q21     1Q22     2Q22     Y/Y Δ     Q/Q Δ     1H21     1H22     Y/Y Δ  

Crude processed (Kbbld)

     266.4       282.6       287.7       8.0     1.8     269.9       285.2       5.7

Refinery utilization (%)

     81.2     86.1     87.7     650 bps      156 bps      82     87     5.7

Sales volume

                
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Sales of refined products (Km3)

     4,264       4,505       4,650       9.1     3.2     8,405       9,155       8.9
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total domestic market

     3,976       4,154       4,323       8.7     4.1     7877.2       8,477       7.6

of which Gasoline

     1,032       1,410       1,364       32.1     -3.3     2271.5       2,774       22.1

of which Diesel

     1,931       2,030       2,284       18.3     12.5     3742.0       4,314       15.3

Total export market

     288       351       328       13.6     -6.6     527.4       678       28.6
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Sales of petrochemical products (Ktn)

     229       215       217       -5.3     0.8     476       432       -9.4
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Domestic market

     179       180       189       5.9     5.1     345       370       7.1

Export market

     50       35       27       -45.3     -21.5     131       62       -52.7
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Sales of grain, flours and oils (Ktn)

     456       271       517       13.2     90.5     751       788       4.9
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Domestic market

     11       7       39       243.1     445.5     22       46       107.4

Export market

     445       264       478       7.4     80.9     729       742       1.8
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Sales of fertilizers (Ktn)

     328       104       166       -49.3     59.4     514       270       -47.4
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Domestic market

     328       104       166       -49.3     59.4     514       270       -47.4
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net average prices of fuels in the domestic market

                

Gasoline (USD/m3)

     514       532       589       14.6     10.9     485       562       15.9

Diesel (USD/m3)

     546       596       738       35.4     24.0     514       670       30.2

Net Average domestic prices for gasoline and diesel are net of taxes, commissions, commercial bonuses and rights.

Nominal capacity at 328.1 Kbbl/d since 1Q21

Crude oil processed during the quarter stood at 287.7 Kbbl/d, which represented an increase of 1.8% q/q and 8.0% y/y. The utilization rate was 87.7% and crude oil purchases to third parties increased 6.8% q/q. It is worth noting that during the first half of the year, we achieved a record high production of gasoline and middle distillates through the maximization of our refinery conversion levels, in order to partially reduce dependance on imports.

Domestic gasoline sales volumes decreased by 3.3% due to the higher seasonal summer demand of the first quarter surpassing pre-pandemic levels by 8.2%, while domestic diesel volumes rose by 12,5% sequentially, driven by the highest level ever dispatched of diesel in any given quarter, standing 16% above pre-pandemic levels of the same second quarter of 2019.

This historically high diesel demand stressed supply logistics in certain regions of the country, causing some disruptions in the normal supply to consumers. However, the company faced this exceptional high demand through increased processing levels, higher than historical imports, a greater portion of biofuels in the blend and drawing on inventories, that have gradually restored the normal supply of diesel to customers.

Net average diesel prices in the domestic market in U.S. dollar terms increased 24.0% q/q, while net average gasoline prices increased 10.9% q/q. The sequential growth was attributable to an active pricing policy on the basis of which we continued to adjust prices at the pump during May and June aiming at compensating for the depreciation of the currency while also managing to partially track rallying international reference prices. In addition, we have continued with the strategy of reducing the discounts at the wholesale segments and even adjusting wholesale prices above retail prices where, in some particular segments/cases, we were able to fully translate international parities to local clients.

 

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In addition, during 2Q22, we continued benefiting from a high pricing environment on the basket of refined products, other than gasoline and diesel, that correlate with international prices, which represent about 20% of our total revenues. Accordingly, petrochemicals, lubricants and jet fuel prices rose by 12.7%, 16.9%, and 44.2% against the previous quarter, respectively, among other products linked to international prices.

 

Downstream Financials

Unaudited Figures, in US$ million

   2Q21     1Q22     2Q22     Y/Y Δ     Q/Q Δ     1H21     1H22     Y/Y Δ  

Diesel

     1,111       1,283       1,775       59.7     38.3     2,032       3,058       50.5

Gasoline

     581       817       880       51.5     7.8     1,195       1,697       42.1

Other domestic market

     638       622       844       32.1     35.7     1,102       1,465       32.9

Export market

     442       422       671       51.9     59.0     716       1,094       52.7
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Revenues

     2,773       3,144       4,170       50.4     32.6     5,045       7,315       45.0
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
                   N/A  

Depreciation & amortization

     (140     (134     (138     -1.6     3.0     (274     (272     -0.9

Refining & Logistics costs

     (255     (289     (344     34.9     19.0     (484     (633     30.8

Fuels imports

     (95     (334     (346     265.3     3.5     (170     (680     301.0

Crude oil purchases (intersegment + third parties)

     (1,219     (1,434     (1,596     31.0     11.3     (2,421     (3,030     25.2

Biofuel purchases

     (90     (167     (253     182.9     51.5     (198     (421     112.6

Non-oil agro purchases

     (322     (196     (503     56.1     156.7     (440     (698     58.6

Other

     (310     (280     (365     17.9     30.3     (517     (646     25.0
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income before impairment of assets

     343       310       625       82.4     101.7     541       935       72.7
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Impairment of assets

     —         —         —         N/A       N/A       —         —         N/A  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     343       310       625       82.4     101.7     541       935       72.7
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Depreciation & amortization

     140       134       138       -1.6     3.0     274       272       -0.9

Impairment of assets

     —         —         —         N/A       N/A       —         —         N/A  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA

     483       444       763       58.0     72.0     815       1,206       47.9
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Leasing

     (20     (19     (19     -4.3     -2.4     (36     (38     7.0

Other adjustments

     0       1       1       2285.1     13.9     1       2       117.4
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

     463       425       745       60.8     75.2     780       1,170       49.9
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Holding results from oil products

     61       68       192       211.8     181.8     169       260       53.6
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA excl. holding results from oil products

     402       357       553       37.7     54.9     611       910       48.9
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Capex

     81       105       171       111.1     62.3     132       276       108.6
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Revenues during 2Q22 totaled US$4,170 million, an increase of 32.6% compared to 1Q22, mainly driven by higher average prices of local fuels and internationally-priced products and highlighting the sequential growth in local fuel diesel demand.

Refining and logistics costs went up 19.0% q/q, mainly as a result of higher regular maintenance works and energy costs in our refineries, coupled with higher transportation costs related to the increase of sales volumes.

Separately, gasoline and diesel imports increased 3.3% primarily due to higher prices, partially offset by a decrease in volumes. Crude oil purchases (including inter-segment purchases to our Upstream operations) increased 11.3%, mainly due to higher crude oil realization price by 10.7% and a slight increase in refining processing leveles. Biofuel purchases increased by 51.5% as a result of the rise in prices and higher volumes of biodiesel purchased, in line with the sequential growth in diesel demand and the mandatory blending increase declared by the government plus a temporary additional increase for two months beginning in mid-June. Non-oil agro purchases increased by 156.7%, mainly driven by a seasonal expansion in the purchases of fertilizer and grains, aligned with the sequential increase in sales of non-oil agro products.

As a result, Downstream adjusted EBITDA, excluding inventories price effects from oil products, totaled US$21.1 per barrel. Within the Downstream segment, Refining & Marketing adjusted EBITDA reached US$18.5 per barrel of crude processed. It is worth highlighting that these results came on the back of a benign pricing environment, primarily on products that correlate closely with international prices, such as petrochemicals, lubricants, jet fuel, LPG, etc., which represent around 25% of the Downstream revenues.

 

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CAPEX:

In 2Q 2022, Downstream capex totaled US$171 million for the quarter, setting a 62.3% increase compared to the first quarter and a 111.1% rise y/y.

During 2Q22, we continued with the execution of the new fuel specifications project, including the construction of a new diesel hydrotreatment unit at the Luján de Cuyo refinery and a gasoline hydrotreatment and revamping of existing gasoline units, in La Plata Industrial Complex. The purpose of these works is to comply with the new fuel specifications established by Resolution No. 576/2019, which will come into force in 2024. In addition, we made progress in the revamping of the Topping D Unit of La Plata Refinery, which will allow greater processing of shale crude oil, and which is expected to be ready by 2024.

In terms of midstream oil investments, which consolidate within the Downstream segment, we continued with the construction of the La Amarga Chica-Puesto Hernández pipeline, an investment totaling about US$230 million, mostly concentrated in 2023, which will increase the evacuation of crude oil from our core hub blocks to the northern of the Neuquén Province, to be either exported to Chile through the TransAndean Oil Pipeline expected to be back in operations by early next year, or re-directed to our Lujan de Cuyo refinery.

During this quarter we also continued investing in maintaining and improving safety conditions for people and facilities,complying with the current environmental regulations in refining operations, logistics and dispatch of oil products.

 

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4.3. GAS AND POWER

 

Gas & Power Financials

Unaudited Figures, in US$ million

   2Q21     1Q22     2Q22     Y/Y Δ     Q/Q Δ     1H21     1H22     Y/Y Δ  

Natural gas as producers (intersegment + third parties)

     427       388       493       15.5     27.0     712       881       23.7

Natural gas retail segment

     109       61       138       26.9     125.1     166       199       19.9

Other

     43       85       117       174.7     37.4     70       203       189.8
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Revenues

     578       535       748       29.4     39.9     948       1,283       35.3
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Depreciation & amortization

     (13     (22     (21     65.8     -6.6     (25     (43     74.6

Natural gas purchases (intersegment + third parties)

     (424     (397     (490     15.3     23.3     (713     (887     24.3

Other

     (130     (112     (197     52.0     76.0     (230     (310     34.4
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income before impairment of assets

     11       3       40       259.7     1182.2     (20     43       N/A  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Impairment of assets

     —         —         —         N/A       N/A       —         —         N/A  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     11       3       40       259.7     1182.2     (20     43       N/A  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Depreciation & amortization

     13       22       21       65.8     -6.6     25       43       74.6

Impairment of assets

     —         —         —         N/A       N/A       —         —         N/A  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA

     24       25       61       156.9     139.3     5       86       1780.7
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Leasing

     (5     (8     (6     10.6     -25.5     (11     (14     23.5

Other adjustments

     1       (0     (1     N/A       82.9     3       (1     N/A  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

     20       17       54       179.1     215.3     (3     72       N/A  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Capex

     6       7       11       75.1     62.5     10       18       73.4
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Sales of natural gas as producers include domestic and external markets

Revenues during 2Q22 totaled US$748 million, rising 39.9% compared to 1Q22, mainly driven by an increase of 27.0% in sales of natural gas, as producers in the local market and abroad – 66% of the segment’s sales - due to a price increase of 29.4% driven by the seasonality factor included in the Plan GasAR.

Natural gas sales mainly from our controlled company Metrogas S.A. to the retail distribution segment (residential customers and small businesses) and to large customers (power plants and industries) – 18% of segment’s sales – increased by 125.1% q/q mainly on the back of seasonality of natural gas sales.

When comparing this segment’s revenues y/y, we can appreciate revenues increasing by 29.4% driven by a 26.9% rise in the retail segment and 15.5% growth in natural gas sales as producers. In both cases, there was a positive y/y demand evolution due to weather conditions, reflecting an increase of 15.9% in retail segment volumes and 14.8% in volumes of natural gas as producers.

Total operating costs, excluding depreciation and amortization, increased by 34.9% q/q primarily due to higher purchases of natural gas in line with the growth in sales.

As a whole, Adjusted EBITDA stood at US$54 million. This shows a 215.3% growth compared to the US$17 reached in 1Q22.

 

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4.4. CORPORATE AND OTHER

 

Corporate & Other Financials

Unaudited Figures, in US$ million

   2Q21     1Q22     2Q22     Y/Y Δ     Q/Q Δ     1H21     1H22     Y/Y Δ  

Revenues

     181       234       280       55.2     19.8     324       514       58.6
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating costs and other

     (217     (294     (375     72.6     27.3     (403     (669     66.1
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income before impairment of assets

     (36     (60     (94     158.7     56.5     (78     (155     97.2
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Impairment of assets

     —         —         —         N/A       N/A       —         —         N/A  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     (36     (60     (94     158.7     56.5     (78     (155     97.2
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Depreciation & amortization

     21       20       29       41.7     44.6     42       50       19.5

Impairment of assets

     —         —         —         N/A       N/A       —         —         N/A  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA

     (16     (40     (65     313.7     62.5     (37     (105     185.2
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Leasing

     —         —         —         N/A       N/A       —         —         N/A  

Other adjustments

     1       1       18       3462.5     1617.3     (0     19       N/A  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

     (15     (39     (47     210.0     21.0     (37     (86     133.8
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Capex

     13       30       21       57.6     -30.9     20       50       152.1
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

Corporate and other adjusted EBITDA represented a loss of US$47 million in 2Q 2022, compared to a loss of US$39 million in 1Q22.

Our subsidiary AESA maintained its adjusted EBITDA q/q as well as the Sand Mining Operations unit. Consequently, the sequential increase in the EBITDA loss of this segment was recorded in our corporate areas driven by a rise in marketing and media expenses and higher technology costs.

Moreover, comparing the evolution of the EBITDA y/y, the loss rose by more than 200%, as 2Q21 recorded one-off real estate sales and the activity was still affected by the effects of the pandemic.

 

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5. LIQUIDITY AND SOURCES OF CAPITAL

5.1. CASH FLOW SUMMARY

 

Summary Consolidated Cash Flow

Unaudited Figures, in US$ million

   2Q21      1Q22      2Q22      Y/Y Δ     Q/Q Δ     1H21      1H22      Y/Y Δ  

Cash BoP

     612        611        795        29.9     30.2     1,106        611        -44.8

Net cash flow from operating activities

     1,001        1,433        1,334        33.3     -6.9     2,974        2,768        -6.9

Net cash flow from investing activities

     (531      (839      (1,021      92.3     21.8     (1,557      (1,860      19.5

Net cash flow from financing activities

     (525      (370      (379      -27.8     2.5     (1,689      (749      -55.7

FX adjustments & other

     (17      (40      (62      N.M       54.1     (183      (102      -44.4
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Cash EoP

     540        795        667        23.5     -16.1     650        667        2.7
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Investment in financial assets

     395        534        575        45.8     7.8     395        575        45.8
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Cash + short-term investments EoP

     935        1,329        1,243        32.9     -6.5     1,044        1,243        19.0
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

FCF

     311        391        310        -0.5     -20.8     540        701        29.6
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

FCF = Cash flow from Operations less capex (Investing activities), M&A (Investing activities), and interest and leasing payments (Financing activities). BoP stands for beginning of period / EoP stands of end of period.

In 2Q22 we continued the positive trend in our cash flow from operations, which reached US$1,343 million, comfortably covering our investment plan and interest payments, allowing for further net debt reduction. On a sequential basis, the cash flow from operations decreased 6.3%, despite higher EBITDA levels, primarily due to the positive non-cash stock variation recorded in 2Q22 and the negative working capital variation generated by the seasonality in our sales of natural gas.

Net cash flow from investing activities was negative US$1,021 million, compared to negative US$839 million in 1Q22. This variation was mainly driven by an increase in financial assets’ investments, and an expansion in cash investment payments. In 2Q21, net cash outflow from investing activities was negative US$531 million, significantly lower than 2Q22, as our investment activity was still negatively impacted by the effects of the pandemic.

Net cash flow from financing activities amounted to negative US$379 million in 2Q22, standing at similar levels to those recorded in the previous quarter. It is worth noting that we continued with a reduction in cash interest expenses q/q and during this 2Q22 we prepaid a peso-denominated syndicated loan for the equivalent of about US$82 million, as part of a proactive strategy to minimize the cost of carry of our global financial position.

As a result, free cash flow before debt financing reached US$310 million during the quarter, being positive for the ninth consecutive quarter. This improvement was related to the previously mentioned robustness of our profitability, together with the reduction in cash interest payments, partially compensated by the increase of our investment program in 2022.

In terms of liquidity, our cash and short-term investments stood at US$1,243 million by the end of June, a decrease of US$86 million when compared to the previous quarter, including US$575 million of sovereign bonds and treasury notes. During 2Q22, sovereign bonds in the secondary market experienced a high volatility which resulted in a 3.5% loss over our total liquidity, when marking-to-market all of our financial position.

 

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However, this impact was not fully reflected in our balance sheet since a portion of our position in sovereign bonds are booked on an accrual basis given they are held to maturity. Consequently, the net impact recorded in our consolidated liquidity was less than 2%.

In terms of cash management, during the quarter we continued with an active asset management approach to minimize FX exposure, considering the regulations in force that prevent us from holding a larger portion of our liquidity in foreign currency. In that sense, in a context of limited available dollarized instruments in the local market and given the high level of liquidity that continued during this quarter, we ended up with a consolidated net FX exposure of 27% of total liquidity. Nevertheless, if we consider the liquidity invested in inflation indexed instruments as a proxy-hedge to FX risk, the net exposure falls to 18%.

5.2. NET DEBT

 

Net debt breakdown

Unaudited Figures, in US$ million

   2Q21     1Q22     2Q22     Q/Q Δ  

Short-term debt

     1.274       523       766       46,6

Long-term debt

     6.160       6.719       6.320       -5,9
  

 

 

   

 

 

   

 

 

   

 

 

 

Total debt

     7.434       7.241       7.085       -2,2
  

 

 

   

 

 

   

 

 

   

 

 

 

Avg. Interest rate for AR$-debt

     35,7     38,0     42,4 %   

Avg. Interest rate for US$-debt

     7,6     7,7     7,9 %   

% of debt in AR$

     6     5     3 %   
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash + short term investments

     935       1.329       1.243       -6,5
  

 

 

   

 

 

   

 

 

   

 

 

 

% of cash in AR$

     55     61     62 %   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net debt

     6.499       5.912       5.843       -1,2
  

 

 

   

 

 

   

 

 

   

 

 

 

Average interest rates for AR$ and US$ debt refer to YPF on a stand-alone basis.

As of June 30th, 2022, YPF’s consolidated net debt totaled US$5,843 million, decreasing by US$70 million q/q. On a year over year basis, the total reduction in our net debt reached US$656 million and, taking into consideration the 9 consecutive quarters with positive free cash flow, the cumulative net debt reduction totals the staggering amount of US$1,797 million.

On the same note, in 2Q22 we delivered further reduction in our net leverage position, reaching a ratio of 1.31x net debt to 12-month adjusted EBITDA, showcasing the tremendous recovery in our operating and financial performance, after peaking a net leverage ratio of 4.9x in 1Q21. In addition, our liquidity position comfortably exceeds our short-term debt, considering debt principal maturities of US$641 million coming due within the next 12 months.

In terms of financial activities, in line with an efficient liquidity management, in June 2022 YPF prepaid the peso-denominated tranche of a local syndicated loan for an amount equivalent to US$82 million. This loan, in which 14 local banks participated, was made up of two tranches: a U.S. dollar-denominated tranche for an amount of US$33 million, and a peso-denominated tranche which was prepaid. The final maturity of the AR$ tranche was July 2024, and accrued a variable interest rate based on BADLAR plus a margin of 6.50%.

 

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Additionally, in April 2022, YPF subscribed an interest rate swap with the aim of hedging our exposure in relation to the cross-border SOFR-based CAF loan of US$300 million maturing in December 2024. Interest on this financing accrued at a rate based on 6-month Term SOFR plus a margin.

Regarding our maturity profile, as of June 30th, 2022, we faced total maturities of US$146 million for the remaining six months of 2022, around 40% corresponding to amortizations of international bonds, and the balance mainly consisting in short-term local bank loans and trade financing. The following chart shows the consolidated principal debt maturity profile of the company as of June 30th, 2022, expressed in millions of U.S. dollars:

 

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6. TABLES AND NOTES

6.1. CONSOLIDATED INCOME STATEMENT

 

                                                                                                                               

Income Statement

Unaudited Figures, in US$ million

   2Q21     1Q22     2Q22     Y/Y Δ     Q/Q Δ     1H21     1H22     Y/Y Δ  

Revenues

     3,349       3,635       4,855       44.9     33.5     5,997       8,490       41.6
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Costs

     (2,639     (2,839     (3,444     30.5     21.3     (4,878     (6,283     28.8
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

     710       796       1,411       98.6     77.1     1,120       2,207       97.1 % 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Selling expenses

     (276     (255     (377     36.6     47.9     (500     (631     26.2

Administrative expenses

     (115     (138     (159     38.3     15.6     (218     (297     36.5

Exploration expenses

     (9     (11     (13     53.0     24.4     (10     (24     128.1

Impairment of property, plant and equipment and intangible assets

     —         —         —         N/A       N/A       —         —         N/A  

Other operating results, net

     (1     (14     (12     2219.8     -15.4     (4     (25     623.8
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     310       380       850       174.0     123.9     388       1,229       217.0
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income of interests in companies and joint ventures

     15       115       133       800.1     15.9     73       248       241.9

Financial Income

     206       301       455       121.2     51.0     459       757       64.7

Financial Cost

     (376     (403     (510     35.7     26.7     (741     (913     23.1

Other financial results

     54       58       51       -6.3     -11.9     117       108       -7.6

Financial results, net

     (116     (44     (4     -96.4     -90.4     (165     (48     -71.0
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net profit before income tax

     209       451       979       368.4     117.0     296       1,430       383.5
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income tax

     (701     (203     (181     -74.2     -10.7     (813     (384     -52.8
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net profit for the period

     (492     248       798       N/A       221.5     (517     1,046       N/A  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net profit for shareholders of the parent company

     (479     250       790       N/A       216.2     (502     1,040       N/A  

Net profits for non-controlling interest

     (13     (2     8       N/A       N/A       (15     6       N/A  

Earnings per share attributable to shareholders of the parent company (basic and diluted)

     (1.22     0.64       2.01       N/A       214.1     (1.28     2.65       N/A  

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

 

                                                                                                                               

Income Statement

Unaudited Figures, in AR$ million

   2Q21     1Q22     2Q22     Y/Y Δ     Q/Q Δ     1H21     1H22     Y/Y Δ  

Revenues

     315,873       388,169       578,011       83.0     48.9     550,763       966,180       75.4 % 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Costs

     (248,940     (303,142     (410,626     64.9     35.5     (447,471     (713,768     59.5
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

     66,933       85,027       167,385       150.1     96.9     103,292       252,412       144.4 % 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Selling expenses

     (26,021     (27,224     (44,888     72.5     64.9     (45,966     (72,112     56.9

Administrative expenses

     (10,912     (14,774     (19,218     76.1     30.1     (20,037     (33,992     69.6

Exploration expenses

     (804     (1,123     (1,553     93.2     38.3     (963     (2,676     177.9

Impairment of property, plant and equipment and intangible assets

     —         —         —         N/A       N/A       —         —         N/A  

Other operating results, net

     (55     (1,457     (1,370     2390.9     -6.0     (331     (2,827     754.1
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     29,141       40,449       100,356       244.4     148.1     35,995       140,805       291.2 % 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income of interests in companies and joint ventures

     1,439       12,229       15,465       974.7     26.5     6,555       27,694       322.5

Financial Income

     19,314       32,110       53,736       178.2     67.3     41,661       85,846       106.1

Financial Cost

     (35,448     (43,037     (60,960     72.0     41.6     (67,771     (103,997     53.5

Other financial results

     5,262       6,332       7,017       33.4     10.8     10,947       13,349       21.9

Financial results, net

     (10,872     (4,595     (207     -98.1     -95.5     (15,163     (4,802     -68.3
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net profit before income tax

     19,708       48,083       115,614       486.6     140.4     27,387       163,697       497.7 % 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income tax

     (65,970     (21,666     (21,551     -67.3     -0.5     (75,896     (43,217     -43.1
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net profit for the period

     (46,262     26,417       94,063       N/A       256.1     (48,509     120,480       N/A  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net profit for shareholders of the parent company

     (45,017     26,603       93,087       N/A       249.9     (47,083     119,690       N/A  

Net profits for non-controlling interest

     (1,245     (186     976       N/A       N/A       (1,426     790       N/A  

Earnings per share attributable to shareholders of the parent company (basic and diluted)

     (114.67     67.69       236.84       N/A       2.50       (119.93     304.53       N/A  

 

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6.2. CONSOLIDATED BALANCE SHEET

 

Consolidated Balance Sheet    In US$ million      In AR$ million  

Unaudited Figures

   31-Mar-22      30-Jun-22      31-Mar-22      30-Jun-22  

Non-current Assets

           

Intangible assets

     416        414        46.181        51.816  

Properties, plant and equipment

     16.114        16.323        1.787.255        2.042.489  

Assets for leasing

     496        521        54.984        65.163  

Investments in companies and joint ventures

     1.651        1.715        183.092        214.656  

Deferred tax assets, net

     15        14        1.625        1.810  

Other receivables

     54        50        5.995        6.279  

Trade receivables

     42        40        4.706        5.044  

Investment in financial assets

     35        179        3.865        22.389  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total Non-current Assets

     18.823        19.257        2.087.703        2.409.646  
  

 

 

    

 

 

    

 

 

    

 

 

 

Current Assets

           

Assets held for disposal

     1        1        111        125  

Inventories

     1.510        1.723        167.500        215.577  

Contract assets

     16        17        1.765        2.168  

Other receivables

     507        604        56.195        75.523  

Trade receivables

     1.394        1.547        154.630        193.543  

Investment in financial assets

     534        575        59.182        72.007  

Cash and cash equivalents

     795        667        88.210        83.501  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total Current Assets

     4.757        5.134        527.593        642.444  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total Assets

     23.580        24.391        2.615.296        3.052.090  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total Shareholders’ Equity

     8.570        9.401        950.535        1.176.343  
  

 

 

    

 

 

    

 

 

    

 

 

 

Non-current Liabilities

           

Provisions

     2.501        2.538        277.382        317.600  

Deferred tax liabilities, net

     1.665        1.333        184.670        166.791  

Income tax payable

     49        41        5.398        5.128  

Other taxes payable

     2        2        203        202  

Salaries and social security

     21        13        2.299        1.688  

Liabilities from leasing

     241        259        26.708        32.420  

Loans

     6.719        6.320        745.187        790.765  

Other liabilities

     8        8        934        1.054  

Accounts payable

     8        8        923        988  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total non-current Liabilities

     11.214        10.522        1.243.704        1.316.636  
  

 

 

    

 

 

    

 

 

    

 

 

 

Current Liabilities

           

Provisions

     174        181        19.263        22.653  

Contract liabilities

     282        232        31.237        29.008  

Income tax payable

     110        419        12.189        52.398  

Other taxes payable

     312        236        34.653        29.511  

Salaries and social security

     198        222        21.972        27.765  

Liabilities from leasing

     279        286        30.960        35.732  

Loans

     523        766        57.952        95.839  

Other liabilities

     16        12        1.753        1.455  

Accounts payable

     1.903        2.116        211.078        264.750  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total Current Liabilities

     3.796        4.468        421.057        559.111  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total Liabilities

     15.010        14.990        1.664.761        1.875.747  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total Liabilities and Shareholders’ Equity

     23.580        24.391        2.615.296        3.052.090  
  

 

 

    

 

 

    

 

 

    

 

 

 

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

 

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6.3. CONSOLIDATED CASH FLOW STATEMENT

 

Cash Flow Statement

Unaudited Figures, in US$ million

   2Q21     1Q22     2Q22     Y/Y Δ     Q/Q Δ     1H21     1H22     Y/Y Δ  

Operating activities

                

Net income

     (492     248       798       N/A       221.5     (517     1,046       N/A  

Income of interests in companies and joint ventures

     (15     (115     (133     800.1     15.9     (73     (248     241.9

Depreciation of property, plant and equipment

     772       589       631       -18.3     7.0     1,459       1,220       -16.4

Depreciation of the right-of-use assets

     51       51       50       -1.3     -1.1     98       101       2.4

Amortization of intangible assets

     13       11       12       -4.3     10.3     24       23       -5.3

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

     87       85       100       14.3     16.5     170       185       8.6

Income tax charge

     701       203       181       -74.2     -10.7     813       384       -52.8

Net increase in provisions

     79       72       105       33.0     46.8     144       177       23.1

Impairment of property, plant and equipment and intangible assets

     —         —         —         N/A       N/A       —         —         N/A  

Interest, exchange differences and others

     122       8       126       3.3     1382.0     165       134       -18.7

Stock compensation plans

     1       0       0       -62.7     -2.8     3       1       -62.9

Accrued insurance

     —         —         —         N/A       N/A       —         —         N/A  

Results from exchange of debt instruments

     —         —         —         N/A       N/A       (21     —         N/A  

Results for assignment of participation in areas

     (5     —         —         N/A       N/A       (5     —         N/A  

Results from sales of assets held for disposal

     (33     —         —         N/A       N/A       (33     —         N/A  

Results from exchange of financial instruments

     —         —         —         N/A       N/A       —         —         N/A  

Changes in assets and liabilities

       —           N/A       N/A        

Trade receivables

     (162     (113     (231     42.2     103.6     (142     (344     142.8

Other receivables

     55       156       (135     N/A       N/A       (38     21       N/A  

Inventories

     (86     (3     (210     143.2     7733.2     (112     (212     90.2

Accounts payable

     (63     (18     80       N/A       N/A       128       62       -51.7

Other taxes payable

     (57     178       (58     2.8     N/A       34       119       247.4

Salaries and Social Security

     13       (33     17       28.1     N/A       (14     (16     13.7

Other liabilities

     (17     (19     (4     -75.4     -78.0     (44     (23     -47.1

Decrease in provisions for payments / utilization

     (10     (30     (32     218.7     5.0     (31     (62     102.5

Contract Assets

     (11     (4     (4     -65.8     -4.2     (6     (8     38.7

Contract Liabilities

     14       168       (19     N/A       N/A       7       149       1965.2

Dividends received

     40       —         64       59.6     N/A       40       64       58.4

Insurance charge for loss of profit

     5       1       —         N/A       N/A       5       1       -80.2

Income tax payments

     (1     (2     (4     186.2     63.4     (3     (6     123.7
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash flow from operating activities

     1,001       1,433       1,334       33.3     -6.9     2,055       2,768       34.7 % 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Investing activities

                

Acquisitions of property, plant and equipment and intangible assets

     (500     (785     (820     64.0     4.4     (993     (1,605     61.6

Proceeds from sales of financial assets

     120       33       195       62.4     497.8     225       228       1.3

Payments for the acquisition of financial assets

     (191     (88     (416     118.1     370.3     (339     (504     48.8

Interest received from financial assets

     22       1       17       -20.8     1964.9     35       18       -48.4

Collection for participation in areas and sale of assets

     17       2       2       -89.7     8.2     17       3       -80.1
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash flow from investing activities

     (531     (839     (1,021     92.3     21.8     (1,055     (1,860     76.4 % 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Financing activities

                

Payment of loans

     (543     (467     (257     -52.6     -44.9     (1,080     (724     -32.9

Payment of interests

     (131     (173     (126     -3.3     -27.2     (330     (300     -9.2

Proceeds from loans

     226       356       87       -61.3     -75.5     516       443       -14.1

Acquisition of own shares

     —         —         —         N/A       N/A       —         —         N/A  

Payment of leasing

     (77     (85     (80     4.9     -5.7     (153     (166     8.0

Payment of interests related to income tax

     (0     (0     (2     1546.1     455.6     (0     (3     1168.6
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash flow from financing activities

     (525     (370     (379     -27.8     2.5     (1,047     (749     -28.5 % 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Effect of changes in exchange rates on cash and cash equivalents

     6       15       26       315.4     73.7     17       41       146.9

Translation adjustments

     (23     (55     (88     283.2     59.5     (79     (143     80.9

Increase (decrease) in cash and cash equivalents

     (72     185       (128     77.8     N/A       (109     57       N/A  

Cash and cash equivalents at the beginning of the period

     612       611       795       29.9     30.2     650       611       -6.0
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash and cash equivalents at the end of the period

     540       795       667       23.5     -16.1     540       667       23.5 % 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

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Cash Flow Statement

Unaudited Figures, in AR$ million

   2Q21     1Q22     2Q22     Y/Y Δ     Q/Q Δ     1H21     1H22     Y/Y Δ  

Operating activities

                

Net income

     (46,262     26,417       94,063       N/A       256.1     (48,509     120,480       N/A  

Income of interests in companies and joint ventures

     (1,439     (12,229     (15,465     974.7     26.5     (6,555     (27,694     322.5

Depreciation of property, plant and equipment

     72,552       62,809       74,560       2.8     18.7     133,427       137,369       3.0

Depreciation of the right-of-use assets

     4,768       5,391       5,894       23.6     9.3     8,982       11,285       25.6

Amortization of intangible assets

     1,197       1,182       1,492       24.6     26.2     2,239       2,674       19.4

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

     8,186       9,103       11,738       43.4     28.9     15,555       20,841       34.0

Income tax charge

     65,970       21,666       21,551       -67.3     -0.5     75,896       43,217       -43.1

Net increase in provisions

     7,455       7,653       12,430       66.7     62.4     13,178       20,083       52.4

Impairment of property, plant and equipment and intangible assets

     —         —         —         N/A       N/A       —         —         N/A  

Interest, exchange differences and others

     11,375       765       14,033       23.4     1734.4     15,189       14,798       -2.6

Stock compensation plans

     122       53       57       -53.3     7.5     241       110       -54.4

Accrued insurance

     —         —         —         N/A       N/A       —         —         N/A  

Results from exchange of debt instruments

     —         —         —         N/A       N/A       (1,855     —         N/A  

Results for assignment of participation in areas

     (472     —         —         N/A       N/A       (472     —         N/A  

Results from sales of assets held for disposal

     (3,121     —         —         N/A       N/A       (3,121     —         N/A  

Results from exchange of financial instruments

     —         —         —         N/A       N/A       —         —         N/A  

Changes in assets and liabilities

       —           N/A       N/A        

Trade receivables

     (15,252     (12,073     (27,199     78.3     125.3     (13,436     (39,272     192.3

Other receivables

     5,202       16,647       (15,902     N/A       N/A       (3,061     745       N/A  

Inventories

     (8,102     (285     (24,708     205.0     8569.5     (10,349     (24,993     141.5

Accounts payable

     (5,947     (1,942     9,405       N/A       N/A       10,933       7,463       -31.7

Other taxes payable

     (5,339     18,936       (6,886     29.0     N/A       2,728       12,050       341.7

Salaries and Social Security

     1,246       (3,554     2,001       60.6     N/A       (1,203     (1,553     29.1

Other liabilities

     (1,593     (2,024     (492     -69.1     -75.7     (3,970     (2,516     -36.6

Decrease in provisions for payments / utilization

     (933     (3,210     (3,729     299.7     16.2     (2,754     (6,939     152.0

Contract Assets

     (1,028     (416     (441     -57.1     6.0     (548     (857     56.4

Contract Liabilities

     1,327       17,882       (2,231     N/A       N/A       716       15,651       2085.9

Dividends received

     3,766       —         7,540       100.2     N/A       3,794       7,540       98.7

Insurance charge for loss of profit

     503       116       —         N/A       N/A       515       116       -77.5

Income tax payments

     (129     (256     (463     258.9     80.9     (258     (719     178.7
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash flow from operating activities

     94,052       152,631       157,248       67.2     3.0     187,302       309,879       65.4
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Investing activities

                

Acquisitions of property, plant and equipment and intangible assets

     (46,976     (83,629     (96,612     105.7     15.5     (90,616     (180,241     98.9

Proceeds from sales of financial assets

     11,284       3,473       22,980       103.7     561.7     20,540       26,453       28.8

Payments for the acquisition of financial assets

     (17,909     (9,409     (48,976     173.5     420.5     (31,003     (58,385     88.3

Interest received from financial assets

     2,049       89       2,034       -0.7     2185.4     3,221       2,123       -34.1

Collection for participation in areas and sale of assets

     1,634       177       212       -87.0     19.8     1,634       389       -76.2
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash flow from investing activities

     (49,918     (89,299     (120,362     141.1     34.8     (96,224     (214,392     122.8
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Financing activities

                

Payment of loans

     (51,050     (49,729     (30,327     -40.6     -39.0     (98,518     (80,056     -18.7

Payment of interests

     (12,281     (18,474     (14,894     21.3     -19.4     (29,944     (33,368     11.4

Proceeds from loans

     21,208       37,918       10,296       -51.5     -72.8     46,921       48,214       2.8

Acquisition of own shares

     —         —         —         N/A       N/A       —         —         N/A  

Payment of leasing

     (7,197     (9,075     (9,470     31.6     4.4     (13,980     (18,545     32.7

Payment of interests related to income tax

     (14     (47     (289     1964.3     514.9     (21     (336     1500.0
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash flow from financing activities

     (49,334     (39,407     (44,684     -9.4     13.4     (95,542     (86,391     -9.6
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Effect of changes in exchange rates on cash and cash equivalents

     593       1,607       3,089       420.9     92.2     1,515       4,696       210.0

Increase (decrease) in cash and cash equivalents

     (4,607     25,532       (4,709     2.2     N/A       (2,949     20,823       N/A  

Cash and cash equivalents at the beginning of the period

     56,276       62,678       88,210       56.7     40.7     54,618       62,678       14.8
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash and cash equivalents at the end of the period

     51,669       88,210       83,501       61.6     -5.3     51,669       83,501       61.6
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

 

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6.4. MAIN PHYSICAL MAGNITUDES

 

Main physical magnitudes

Unaudited Figures

   Unit    1Q21      2Q21      3Q21      4Q21      Cum. 2021      1Q22      2Q22      Cum. 2022  

Total Production

   Kboe      39,330        41,961        45,591        44,542        171,424        45,523        45,836        91,360  
  

 

  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Crude oil production

   Kbbl      18,691        19,125        19,265        19,886        76,967        19,993        20,506        40,499  

NGL production

   Kbbl      2,653        3,329        3,832        2,757        12,572        3,979        3,796        7,775  

Gas production

   Mm3      2,860        3,102        3,576        3,482        13,020        3,427        3,424        6,851  

Henry Hub

   USD/MMBTU      2.7        3.0        4.3        4.8        3.7        4.6        7.5        7.5  

Brent

   USD/bbl      61.8        68.8        73.5        79.6        70.7        97.4        111.9        209.3  

Sales volume (YPF stand alone)

                          
  

 

  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Sales of refined products

   Km3      4,140        4,264        4,610        4,651        17,666        4,411        4,650        9,062  
  

 

  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Domestic market

   Km3      3,901        3,976        4,297        4,291        16,465        4,061        4,323        8,383  

Gasoline

   Km3      1,240        1,032        1,263        1,452        4,987        1,410        1,364        2,774  

Diesel

   Km3      1,811        1,931        2,084        2,181        8,007        2,030        2,284        4,314  

Jet fuel and kerosene

   Km3      65        49        74        107        295        124        115        239  

Fuel Oil

   Km3      102        73        36        5        216        4        13        17  

LPG

   Km3      130        195        186        135        645        133        212        345  

Other (*)

   Km3      553        697        654        411        2,316        360        335        695  

Export market

   Km3      239        288        313        360        1,200        351        328        678  

Petrochemical naphtha

   Km3      0        96        89        20        205        15        53        69  

Jet fuel and kerosene

   Km3      25        27        29        59        140        74        81        154  

LPG

   Km3      74        23        62        154        313        124        28        152  

Bunker (Diesel and Fuel Oil)

   Km3      52        64        78        71        264        94        67        160  

Other (*)

   Km3      88        79        55        56        278        44        100        144  
  

 

  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Sales of petrochemical products

   Ktn      247        229        248        193        917        215        217        432  
  

 

  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Domestic market

   Ktn      166        179        187        171        704        180        189        370  

Methanol

   Ktn      43        57        71        53        224        19        0        19  

Other

   Ktn      123        121        117        118        479        162        189        351  

Export market

   Ktn      81        50        60        22        213        35        27        62  

Methanol

   Ktn      45        18        32        3        98        1        0        1  

Other

   Ktn      37        32        28        19        115        34        27        62  
  

 

  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Grain, flours and oils

   Ktn      294        456        381        238        1,371        271        517        788  
  

 

  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Domestic market

   Ktn      11        11        4        7        33        7        39        46  

Export market

   Ktn      284        445        377        232        1,338        264        478        742  
  

 

  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Fertilizers

   Ktn      186        328        25        221        760        104        166        270  
  

 

  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Domestic market

   Ktn      186        328        25        221        760        104        166        270  

Main products imported (YPF stand alone)

                          

Gasolines

   Km3      82        6        46        89        223        122        40        162  

Jet Fuel

   Km3      0        4        0        6        9        2        0        2  

Diesel

   Km3      46        155        251        472        924        289        255        545  

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

 

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This document contains statements that YPF believes constitute forward-looking statements within the meaning of the US Private Securities Litigation Reform Act of 1995.

These forward-looking statements may include statements regarding the intent, belief, plans, current expectations or objectives as of the date hereof of YPF and its management, including statements with respect to trends affecting YPF’s future financial condition, financial, operating, reserve replacement and other ratios, results of operations, business strategy, geographic concentration, business concentration, production and marketed volumes and reserves, as well as YPF’s plans, expectations or objectives with respect to future capital expenditures, investments, expansion and other projects, exploration activities, ownership interests, divestments, cost savings and dividend payout policies. These forward-looking statements may also include assumptions regarding future economic and other conditions, such as the future price of petroleum and petroleum products, refining and marketing margins and exchange rates. These statements are not guarantees of future performance, prices, margins, exchange rates or other events and are subject to material risks, uncertainties, changes in circumstances and other factors that may be beyond YPF’s control or may be difficult to predict.

YPF’s actual future financial condition, financial, operating, reserve replacement and other ratios, results of operations, business strategy, geographic concentration, business concentration, production and marketed volumes, reserves, capital expenditures, investments, expansion and other projects, exploration activities, ownership interests, divestments, cost savings and dividend payout policies, as well as actual future economic and other conditions, such as the future price of petroleum and petroleum products, refining margins and exchange rates, could differ materially from those expressed or implied in any such forward-looking statements. Important factors that could cause such differences include, but are not limited to fluctuations in the price of petroleum and petroleum products, supply and demand levels, currency fluctuations, exploration, drilling and production results, changes in reserves estimates, success in partnering with third parties, loss of market share, industry competition, environmental risks, physical risks, the risks of doing business in developing countries, legislative, tax, legal and regulatory developments, economic and financial market conditions in various countries and regions, political risks, wars and acts of terrorism, natural disasters, project delays or advancements and lack of approvals, as well as those factors described in the filings made by YPF and its affiliates before the Comisión Nacional de Valores in Argentina and with the U.S. Securities and Exchange Commission, in particular, those described in “Item 3. Key Information—Risk Factors” and “Item 5. Operating and Financial Review and Prospects” in YPF’s Annual Report on Form 20-F for the fiscal year ended December 31, 2021 filed with the Securities and Exchange Commission. In light of the foregoing, the forward-looking statements included in this document may not occur.

Except as required by law, YPF does not undertake to publicly update or revise these forward-looking statements even if experience or future changes make it clear that the projected performance, conditions, or events expressed or implied therein will not be realized. These materials do not constitute an offer for sale of YPF S.A. bonds, shares or ADRs in the United States or elsewhere.

The information contained herein has been prepared to assist interested parties in making their own evaluations of YPF.

 

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

   YPF Sociedad Anónima
Date: August 10, 2022    By:   

/s/ Pablo Calderone

   Name:    Pablo Calderone
   Title:    Market Relations Officer
YPF Sociedad Anonima (NYSE:YPF)
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