Table of Contents

 

 

 

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 6-K

 

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13A-16 OR 15D-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of August 2023

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

 

 

 

 


Table of Contents

YPF Sociedad Anónima

TABLE OF CONTENT

ITEM 1    Translation of YPF S.A.’s Condensed Interim Consolidated Financial Statements as of June 30, 2023 and Comparative Information (Unaudited).


Table of Contents

 

 

LOGO

YPF SOCIEDAD ANONIMA

CONDENSED INTERIM CONSOLIDATED

FINANCIAL STATEMENTS AS OF JUNE 30, 2023

AND COMPARATIVE INFORMATION (UNAUDITED)


Table of Contents

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

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

 

YPF SOCIEDAD ANONIMA

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND COMPARATIVE INFORMATION (UNAUDITED)

  

LOGO

CONTENT

 

  Note  

  

  Description

           Page        
  

Glossary of terms

   1
  

Legal Information

   2
  

Condensed interim consolidated statements of financial position

   3
  

Condensed interim consolidated statements of comprehensive income

   4
  

Condensed interim consolidated statements of changes in shareholders’ equity

   5
  

Condensed interim consolidated statements of cash flow

   7
  

Notes to the condensed interim consolidated financial statements:

  
1   

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

   8
2   

Basis of preparation of the condensed interim consolidated financial statements

   9
3   

Seasonality of operations

   12
4   

Acquisitions and dispositions

   12
5   

Financial risk management

   12
6   

Business segment information

   13
7   

Financial instruments by category

   18
8   

Intangible assets

   18
9   

Property, plant and equipment

   19
10   

Right-of-use assets

   22
11   

Investments in associates and joint ventures

   22
12   

Inventories

   25
13   

Other receivables

   25
14   

Trade receivables

   25
15   

Investments in financial assets

   26
16   

Cash and cash equivalents

   26
17   

Provisions

   26
18   

Income Tax

   27
19   

Taxes payable

   29
20   

Salaries and social security

   29
21   

Lease liabilities

   29
22   

Loans

   30
23   

Other liabilities

   32
24   

Accounts payable

   32
25   

Revenues

   32
26   

Costs

   34
27   

Expenses by nature

   35
28   

Other net operating results

   36
29   

Net financial results

   36
30   

Investments in joint operations

   36
31   

Shareholders’ equity

   37
32   

Earnings per share

   37
33   

Issues related to Maxus Entities

   37
34   

Contingent assets and contingent liabilities

   38
35   

Contractual commitments

   39
36   

Main regulations

   39
37   

Balances and transactions with related parties

   42
38   

Employee benefit plans and similar obligations

   45
39   

Assets and liabilities in currencies other than the peso

   46
40   

Subsequent events

   47


Table of Contents

1

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

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

 

YPF SOCIEDAD ANONIMA

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND COMPARATIVE INFORMATION (UNAUDITED)

  

LOGO

 

GLOSSARY OF TERMS

 

Term

  

Definition

ADR

   American Depositary Receipt

ADS

   American Depositary Share

AESA

   Subsidiary A-Evangelista S.A.

AFIP

   Argentine Tax Authority (Administración Federal de Ingresos Públicos)

ANSES

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

ASC

   Accounting Standards Codification

Associate

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

B2B

   Business to Business

B2C

   Business to Consumer

BCRA

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

BNA

   Argentine Nation Bank (Banco de la Nación Argentina)

BO

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

BONAR

   Argentine Treasury Bonds (Bonos de la Nación Argentina)

CAMMESA

   Compañía Administradora del Mercado Mayorista Eléctrico S.A.

CDS

   Associate Central Dock Sud S.A.

CGU

   Cash-Generating Units

CNDC

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

CNV

   Argentine Securities Commission (Comisión Nacional de Valores)

CPI

   Consumer Price Index published by INDEC

CSJN

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

CT Barragán

   Joint Venture CT Barragán S.A.

Dollar

   United States Dollar

Eleran

   Subsidiary Eleran Inversiones 2011 S.A.U.

ENARGAS

   Argentine Gas Regulator (Ente Nacional Regulador del Gas)

ENARSA

   Energía Argentina S.A. (formerly Integración Energética Argentina S.A. “IEASA”)

FACPCE

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

FASB

   Financial Accounting Standards Board

FOB

   Free on board

GPA

   Associate Gasoducto del Pacífico (Argentina) S.A.

Gas Austral

   Associate Gas Austral S.A.

Group

   YPF and its subsidiaries

IAS

   International Accounting Standard

IASB

   International Accounting Standards Board

IDS

   Associate Inversora Dock Sud S.A.

IFRIC

   International Financial Reporting Interpretations Committee

IFRS

   International Financial Reporting Standard

IIBB

   Turnover tax (Impuesto a los ingresos brutos)

INDEC

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

JO

   Joint operation

Joint venture

   Company jointly owned by YPF as provided for in IFRS 11

LGS

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

LNG

   Liquified natural gas

LPG

   Liquefied Petroleum Gas

MBtu

   Million British thermal units

MEGA

   Joint Venture Company Mega S.A.

Metroenergía

   Subsidiary Metroenergía S.A.

Metrogas

   Subsidiary Metrogas S.A.

MINEM

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

NO

   Negotiable Obligations

Oiltanking

   Associate Oiltanking Ebytem S.A.

OLCLP

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

Oldelval

   Associate Oleoductos del Valle S.A.

OPESSA

   Subsidiary Operadora de Estaciones de Servicios S.A.

OTA

   Joint Venture OleoductoTrasandino (Argentina) S.A.

OTC

   Joint Venture OleoductoTrasandino (Chile) S.A.

PEN

   National Executive Power (Poder Ejecutivo Nacional)

Peso

   Argentine peso

PIST

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

Profertil

   Joint Venture Profertil S.A.

Refinor

   Joint Venture Refinería del Norte S.A.

ROD

   Record of decision

RTI

   Integral Tariff Review (Revisión Tarifaria Integral)

RTT

   Transitional Tariff Regime (Régimen Tarifario de Transición)

SE

   Secretariat of Energy (Secretaría de Energía)

SEC

   U.S. Securities and Exchange Commission

SEE

   Secretariat of Electric Energy (Secretaría de Energía Eléctrica)

SGE

   Government Secretariat of Energy (Secretaría de Gobierno de Energía)

SRH

   Hydrocarbon Resources Secretariat (Secretaría de Recursos Hidrocarburíferos)

SSHyC

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

Subsidiary

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

Sustentator

   Joint Venture Sustentator S.A.

Termap

   Associate Terminales Marítimas Patagónicas S.A.

TFN

   National Fiscal Tribunal (Tribunal Fiscal de la Nación)

UNG

   Unaccounted Natural Gas

US$

   United States Dollar

US$/Bbl

   Dollar per barrel

UVA

   Unit of Purchasing Power

VAT

   Value Added Tax

YPF Brasil

   Subsidiary YPF Brasil Comercio Derivado de Petróleo Ltda.

YPF Chile

   Subsidiary YPF Chile S.A.

YPF EE

   Joint venture YPF Energía Eléctrica S.A.

YPF Gas

   Associate YPF Gas S.A.

YPF Holdings

   Subsidiary YPF Holdings, Inc.

YPF International

   Subsidiary YPF International S.A.

YPF or the Company

   YPF S.A.

YPF Perú

   Subsidiary YPF E&P Perú S.A.C.

YPF Ventures

   Subsidiary YPF Ventures S.A.U.

YTEC

   Subsidiary YPF Tecnología S.A.

Y-LUZ

   Subsidiary Y-LUZ Inversora S.A.U. controlled by YPF EE

WEM

   Wholesale Electricity Market

WI

   Working interest


Table of Contents

2

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

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

 

YPF SOCIEDAD ANONIMA

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND COMPARATIVE INFORMATION (UNAUDITED)

  

LOGO

 

LEGAL INFORMATION

Legal address

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

Fiscal year number 47

Beginning on January 1, 2023.

Principal business of the Company

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

Filing with the Public Registry

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

Duration of the Company

Through June 15, 2093.

Last amendment to the Bylaws

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

Capital structure

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

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

3,933,127,930

 

 

     

PABLO GERARDO GONZÁLEZ

President


Table of Contents

3

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

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

 

YPF SOCIEDAD ANONIMA

 

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

 

AS OF JUNE 30, 2023 AND DECEMBER 31, 2022 (UNAUDITED)

 

(Amounts expressed in millions of pesos)

  

LOGO

 

         Notes                           June 30,        
2023
 

    

       December 31,    
2022

ASSETS

            

Non-current assets

            

Intangible assets

     8          96,242          68,052  

Property, plant and equipment

     9          4,760,179          3,100,306  

Right-of-use assets

     10          130,281          95,748  

Investments in associates and joint ventures

     11          463,530          337,175  

Deferred income tax assets, net

     18          4,104          3,010  

Other receivables

     13          54,359          36,468  

Trade receivables

     14          1,247          1,027  

Investments in financial assets

     15          16,633          35,664  
       

 

 

 

    

 

 

 

Total non-current assets

          5,526,575          3,677,450  
       

 

 

 

    

 

 

 

Current assets

            

Inventories

     12          485,335          307,766  

Contract assets

     25          1,623          148  

Other receivables

     13          187,259          143,231  

Trade receivables

     14          349,007          266,201  

Investments in financial assets

     15          77,677          56,489  

Cash and cash equivalents

     16          299,188          136,874  
       

 

 

 

    

 

 

 

Total current assets

          1,400,089          910,709  
       

 

 

 

    

 

 

 

TOTAL ASSETS

          6,926,664          4,588,159  
       

 

 

 

    

 

 

 

SHAREHOLDERS’ EQUITY

            

Shareholders’ contributions

          6,534          6,306  

Retained earnings

          2,850,240          1,844,724  
       

 

 

 

    

 

 

 

Shareholders’ equity attributable to shareholders of the parent company

 

     2,856,774          1,851,030  
  

 

 

 

    

 

 

 

Non-controlling interest

          37,611          17,274  
       

 

 

 

    

 

 

 

TOTAL SHAREHOLDERS’ EQUITY

          2,894,385          1,868,304  
       

 

 

 

    

 

 

 

LIABILITIES

            

Non-current liabilities

            

Provisions

     17          553,280          455,213  

Deferred income tax liabilities, net

     18          354,894          306,708  

Income tax liability

     18          4,048          4,588  

Taxes payable

     19          163          185  

Salaries and social security

     20          3          215  

Lease liabilities

     21          62,767          48,224  

Loans

     22          1,615,652          1,053,196  

Other liabilities

     23          26,643          3,302  

Accounts payable

     24          1,721          1,319  
       

 

 

 

    

 

 

 

Total non-current liabilities

          2,619,171          1,872,950  
       

 

 

 

    

 

 

 

Current liabilities

            

Provisions

     17          126,971          34,981  

Contract liabilities

     25          42,535          13,577  

Income tax liability

     18          7,917          4,711  

Taxes payable

     19          46,024          30,660  

Salaries and social security

     20          55,987          52,622  

Lease liabilities

     21          74,595          52,061  

Loans

     22          380,424          201,808  

Other liabilities

     23          23,335          2,359  

Accounts payable

     24          655,320          454,126  
       

 

 

 

    

 

 

 

Total current liabilities

          1,413,108          846,905  
       

 

 

 

    

 

 

 

TOTAL LIABILITIES

          4,032,279          2,719,855  
       

 

 

 

    

 

 

 

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

          6,926,664          4,588,159  
       

 

 

 

    

 

 

 

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

 

 

     

PABLO GERARDO GONZÁLEZ

President


Table of Contents

4

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

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

 

YPF SOCIEDAD ANONIMA

 

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

 

FOR THE SIX AND THREE-MONTH PERIODS ENDED JUNE 30, 2023 AND 2022 (UNAUDITED)

 

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

  

LOGO

 

                For the six-month periods    
ended June 30,
       For the three-month periods    
ended June 30,
         Notes          2023    2022    2023    2022

Net income

              

Revenues

     25        1,857,088        997,421        1,036,763        595,970  

Costs

     26        (1,494,916)        (713,768)        (848,400)        (410,626)  
     

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

Gross profit

        362,172        283,653        188,363        185,344  
     

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

Selling expenses

     27        (198,455)        (103,353)        (115,705)        (62,847)  

Administrative expenses

     27        (72,184)        (33,992)        (41,214)        (19,218)  

Exploration expenses

     27        (5,545)        (2,676)        (1,847)        (1,553)  

Other net operating results

     28        2,261        (2,827)        3,696        (1,370)  
     

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

Operating profit

        88,249        140,805        33,293        100,356  
     

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

Income from equity interests in associates and joint ventures

     11        38,796        27,694        21,850        15,465  

Financial income

     29        302,297        85,846        186,110        53,736  

Financial costs

     29        (332,007)        (103,997)        (196,265)        (60,960)  

Other financial results

     29        82,778        13,349        58,771        7,017  
     

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

Net financial results

     29        53,068        (4,802)        48,616        (207)  
     

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

              
     

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

Net profit before income tax

        180,113        163,697        103,759        115,614  
     

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

Income tax

     18        (36,315)        (43,217)        (18,561)        (21,551)  
     

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

Net profit for the period

        143,798        120,480        85,198        94,063  
     

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

Other comprehensive income

              

Items that may be reclassified subsequently to profit or loss:

              

Translation effect from subsidiaries, associates and joint ventures

        (48,180)        (10,715)        (30,530)        (6,880)  

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

        59,903        19,202        35,503        10,824  

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

              

Translation differences from YPF

        870,332        199,186        525,817        127,780  
     

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

Other comprehensive income for the period

        882,055        207,673        530,790        131,724  
     

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

              
     

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

Total comprehensive income for the period

        1,025,853        328,153        615,988        225,787  
     

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

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

              

Shareholders of the parent company

        132,293        119,690        73,727        93,087  

Non-controlling interest

        11,505        790        11,471        976  

Other comprehensive income for the period attributable to:

              

Shareholders of the parent company

        873,223        204,681        525,647        130,036  

Non-controlling interest

        8,832        2,992        5,143        1,688  

Total comprehensive income for the period attributable to:

              

Shareholders of the parent company

        1,005,516        324,371        599,374        223,123  

Non-controlling interest

        20,337        3,782        16,614        2,664  

Earnings per share attributable to shareholders of the parent company:

              

Basic and diluted

     32        337.92        304.53        188.32        236.84  

 

(1)

Result associated to subsidiaries, associates and joint ventures with the peso as functional currency, see Note 2.b.1) to the annual consolidated financial statements.

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

 

 

     

PABLO GERARDO GONZÁLEZ

President


Table of Contents

5

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

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

 

YPF SOCIEDAD ANONIMA   LOGO
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2023 AND 2022 (UNAUDITED)
(Amounts expressed in millions of pesos)

 

    For the six-month period ended June 30, 2023
    Shareholders’ contributions
    Capital   Adjustment
to capital
  Treasury
shares
    Adjustment to
treasury shares
    Share-based
benefit plans
      Acquisition
cost of
treasury shares (2)
      Share
trading
premium
  Issuance
premiums
  Total

Balance at the beginning of the fiscal year

    3,915       6,072       18         29       289         (4,499)         (158)       640       6,306  

Accrual of share-based benefit plans (3)

    -       -       -         -       238         -         -       -       238  

Settlement of share-based benefit plans

    -       -       -         -       (3)         (6)         (1)       -       (10)  

As decided by the Shareholders’ Meeting on April 28, 2023:

                     

- Constitution of reserves

    -       -       -         -       -         -         -       -       -  

Other comprehensive income

    -       -       -         -       -         -         -       -       -  

Net profit for the period

    -       -       -         -       -         -         -       -       -  
 

 

 

 

 

 

 

 

 

 

 

   

 

 

   

 

 

 

   

 

 

 

   

 

 

 

 

 

 

 

 

 

 

 

Balance at the end of the period

    3,915       6,072       18         29       524         (4,505)         (159)       640       6,534  
 

 

 

 

 

 

 

 

 

 

 

   

 

 

   

 

 

 

   

 

 

 

   

 

 

 

 

 

 

 

 

 

 

 

    Retained earnings       Equity attributable to    
    Legal
  reserve  
    Reserve for  
future

dividends
    Reserve for  
investments
      Reserve for  
purchase of
treasury shares
    Other
  comprehensive  
income
        Unappropriated  
retained
earnings and
losses
        Shareholders  
of the parent
company
    Non-controlling  
interest
  Total
  shareholders’  
equity

Balance at the beginning of the fiscal year

    139,275       -       -         -         704,235         1,001,214     (4)      1,851,030       17,274       1,868,304  

Accrual of share-based benefit plans (3)

    -       -       -         -         -         -         238       -       238  

Settlement of share-based benefit plans

    -       -       -         -         -         -         (10)       -       (10)  

As decided by the Shareholders’ Meeting on April 28, 2023:

                     

- Constitution of reserves

    -       40,000       942,959         6,215         -         (989,174)         -       -       -  

Other comprehensive income

    62,488       17,969       423,160         2,763         320,617         46,226         873,223       8,832       882,055  

Net profit for the period

    -       -       -         -         -         132,293         132,293       11,505       143,798  
 

 

 

 

 

 

 

 

 

 

 

   

 

 

   

 

 

 

   

 

 

 

   

 

 

 

 

 

 

 

 

 

 

 

Balance at the end of the period

    201,763       57,969       1,366,119         8,978         1,024,852     (1)      190,559     (4)      2,856,774       37,611       2,894,385  
 

 

 

 

 

 

 

 

 

 

 

   

 

 

   

 

 

 

   

 

 

 

   

 

 

 

 

 

 

 

 

 

 

 

 

  (1)

Includes 1,149,768 corresponding to the effect of the translation of the shareholders’ contributions (see Note 36), (416,044) corresponding to the effect of the translation of the financial statements of investments in subsidiaries, associates and joint ventures with functional currencies other than the U.S. dollar (which includes (286,854) corresponding to the effect of the translation to YPF’s presentation currency) and 291,128 corresponding to the recognition of the result for the net monetary position of subsidiaries, associates and joint ventures with the peso as functional currency (which includes 150,383 corresponding to the effect of the translation to YPF’s presentation currency). See Note 2.b.1) to the annual consolidated financial statements and Note 2.b).

  (2)

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

  (3)

See Note 38.

  (4)

Includes 17,442 and 12,040 restricted to the distribution of unappropiated retained earnings and losses as of June 30, 2023 and December 31, 2022, respectively. See Note 2.b.16) to the annual consolidated financial statements.

 

     

PABLO GERARDO GONZÁLEZ

President


Table of Contents

6

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

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

 

YPF SOCIEDAD ANONIMA

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2023 AND 2022 (UNAUDITED) (cont.)

(Amounts expressed in millions of pesos)

   LOGO

 

    For the six-month period ended June 30, 2022
    Shareholders’ contributions
    Capital   Adjustment
to capital
  Treasury
shares
  Adjustment to
treasury shares
  Share-based
benefit plans
        Acquisition
cost of treasury
shares (2)
  Share
trading
premium
  Issuance
premiums
  Total

Balance at the beginning of the fiscal year

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

Modification to the balance at the beginning of the fiscal year (4)

    -       -       -       -       -         -       -       -       -  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at the beginning of the fiscal year modified

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

Accrual of share-based benefit plans (3)

    -       -       -       -       110         -       -       -       110  

Settlement of share-based benefit plans

    -       2       -       (2)       (59)         46       (25)       -       (38)  

As decided by the Shareholders’ Meeting on April 29, 2022:

                   

- Absorption of accumulated losses

    -       -       -       -       -         -       -       -       -  

Other comprehensive income

    -       -       -       -       -         -       -       -       -  

Net profit for the period

    -       -       -       -       -         -       -       -       -  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at the end of the period

    3,931       6,097       2       4       423         (447)       (74)       640       10,576  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    Retained earnings   Equity attributable to    
    Legal
  reserve  
    Reserve for  
future
dividends
  Reserve for
  investments  
  Reserve for
purchase of
treasury shares
  Other
  comprehensive  
income
          Unappropriated  
retained
earnings and
losses
    Shareholders  
of the parent
company
    Non-controlling  
interest
  Total
shareholders’
equity

Balance at the beginning of the fiscal year

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

Modification to the balance at the beginning of the fiscal year (4)

    78,714       -       -       -       (486,589)         407,875       -       -       -  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at the beginning of the fiscal year modified

    80,721       -       -       -       397,000         351,667       839,892       8,226       848,118  

Accrual of share-based benefit plans (3)

    -       -       -       -       -         -       110       -       110  

Settlement of share-based benefit plans

    -       -       -       -       -         -       (38)       -       (38)  

As decided by the Shareholders’ Meeting on April 29, 2022:

                   

- Absorption of accumulated losses

    -       -       -       -       -         -       -       -       -  

Other comprehensive income

    17,706       -       -       -       95,572         91,403       204,681       2,992       207,673  

Net profit for the period

    -       -       -       -       -         119,690       119,690       790       120,480  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at the end of the period

    98,427       -       -       -       492,572       (1)        562,760       1,164,335       12,008       1,176,343  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  (1)

Includes 556,889 corresponding to the effect of the translation of the shareholders’ contributions (see Note 36), (164,796) corresponding to the effect of the translation of the financial statements of investments in subsidiaries, associates and joint ventures with functional currencies other than the U.S. dollar (which includes (107,847) corresponding to the effect of the translation to YPF’s presentation currency) and 100,479 corresponding to the recognition of the result for the net monetary position of subsidiaries, associates and joint ventures with the peso as functional currency (which includes 41,367 corresponding to the effect of the translation to YPF’s presentation currency). See Note 2.b.1) to the annual consolidated financial statements and Note 2.b).

  (2)

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

  (3)

See Note 38.

  (4)

See Note 2.b).

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

 

     

PABLO GERARDO GONZÁLEZ

President


Table of Contents

7

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

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

 

YPF SOCIEDAD ANONIMA   LOGO
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOW
FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2023 AND 2022 (UNAUDITED)
(Amounts expressed in millions of pesos)

 

       For the six-month periods
   ended June 30,
     2023       2022

Cash flows from operating activities

      

Net profit

     143,798         120,480  

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

      

Income from equity interests in associates and joint ventures

     (38,796)         (27,694)  

Depreciation of property, plant and equipment

     321,285         137,369  

Amortization of intangible assets

     4,485         2,674  

Depreciation of right-of-use assets

     23,651         11,285  

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

     33,172         20,841  

Charge on income tax

     36,315         43,217  

Net increase in provisions

     41,169         20,083  

Effect of changes in exchange rates, interest and others

     (11,120)         14,798  

Share-based benefit plans

     2,537         110  

Changes in assets and liabilities:

      

Trade receivables

     (4,365)         (39,272)  

Other receivables

     (22,010)         745  

Inventories

     (29,977)         (24,993)  

Accounts payable

     52,700         7,463  

Taxes payables

     5,854         12,050  

Salaries and social security

     (8,768)         (1,553)  

Other liabilities

     5,432         (2,516)  

Decrease in provisions included in liabilities due to payment/use

     (23,505)         (6,939)  

Contract assets

     (1,977)         (857)  

Contract liabilities

     20,779         15,651  

Dividends received

     58,450         7,540  

Proceeds from collection of profit loss insurance

     62         116  

Income tax payments

     (1,842)         (719)  
  

 

 

 

   

 

 

 

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

             607,329                      309,879  
  

 

 

 

   

 

 

 

Investing activities: (3)

      

Acquisition of property, plant and equipment and intangible assets

     (559,135)         (180,241)  

Contributions and acquisitions of interests in associates and joint ventures

     (840)         -  

Proceeds from sales of financial assets

     72,558         26,453  

Payments from purchase of financial assets

     (44,297)         (58,385)  

Interests received from financial assets

     10,108         2,123  

Proceeds from sales of WI of areas and assets

     2,783         389  
  

 

 

 

   

 

 

 

Net cash flows used in investing activities

     (518,823)         (209,661)  
  

 

 

 

   

 

 

 

Financing activities: (3)

      

Payments of loans

     (107,074)         (76,128)  

Payments of interests

     (64,334)         (33,368)  

Proceeds from loans

     274,540         38,748  

Account overdraft, net

     (12,487)         5,538  

Payments of leases

     (38,681)         (18,545)  

Payments of interests in relation to income tax

     (1,121)         (336)  
  

 

 

 

   

 

 

 

Net cash flows from / (used in) financing activities

     50,843         (84,091)  
  

 

 

 

   

 

 

 

      
  

 

 

 

   

 

 

 

Effect of changes in exchange rates on cash and cash equivalents

     22,965         4,696  
  

 

 

 

   

 

 

 

      
  

 

 

 

   

 

 

 

Increase in cash and cash equivalents

     162,314         20,823  
  

 

 

 

   

 

 

 

Cash and cash equivalents at the beginning of the fiscal year

     136,874         62,678  

Cash and cash equivalents at the end of the period

     299,188         83,501  
  

 

 

 

   

 

 

 

Increase in cash and cash equivalents

     162,314         20,823  
  

 

 

 

   

 

 

 

 

(1)

Does not include effect of changes in exchange rates generated by cash and cash equivalents, which is exposed separately in this statement.

(2)

Includes 19,886 and 13,758 for the six-month periods ended June 30, 2023 and 2022, respectively, for payment of short-term leases and payments of the variable charge of leases related to the underlying asset use or performance.

(3)

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

 

         For the six-month periods    
ended June 30,
     2023       2022

Unpaid acquisitions of property, plant and equipment

     128,713         42,513  

Additions of right-of-use assets

     25,435         15,586  

Capitalization of depreciation of right-of-use assets

     7,061         3,264  

Capitalization of financial accretion for lease liabilities

     1,387         964  

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

 

 

     

PABLO GERARDO GONZÁLEZ

President


Table of Contents

8

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

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

 

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND COMPARATIVE INFORMATION (UNAUDITED)

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

   LOGO

 

1.

GENERAL INFORMATION, STRUCTURE AND ORGANIZATION OF THE GROUP’S BUSINESS

General information

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

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

Structure and organization of the economic Group

The following chart shows the organizational structure, including the main companies of the Group, as of June 30, 2023:

 

LOGO

 

  (1)

Held directly and indirectly.

  (2)

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

  (3)

On April 13, 2023, YPF EE, through its subsidiary Y-LUZ, completed the purchase from Enel Américas S.A. of 57.14% of common shares of IDS, taking control of IDS and its subsidiary CDS as of said date. Simultaneously, through a joint purchase agreement signed with Pan American Sur S.A. (“PAS”), Y-LUZ transferred shares representing 29.84% of the capital stock of IDS to PAS.

 

     


Table of Contents

9

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

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

 

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND COMPARATIVE INFORMATION (UNAUDITED)

   LOGO

 

1.

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

 

Organization of the business

As of June 30, 2023, the Group carries out its operations in accordance with the following structure:

 

  -

Upstream

 

  -

Gas and Power

 

  -

Industrialization

 

  -

Commercialization

 

  -

Central Administration and Others

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

The operations, properties and clients of the Group are mainly located in Argentina. However, the Group also holds participating interests in exploratory areas in Bolivia and sells jet fuel, natural gas, lubricants and derivatives in Chile and lubricants and derivatives in Brazil.

 

2.

BASIS OF PREPARATION OF THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

2.a) Basis of preparation

The condensed interim consolidated financial statements of the Company for the six-month period ended June 30, 2023 are presented in accordance with IAS 34 “Interim Financial Reporting”. Therefore, they should be read together with the annual consolidated financial statements of the Company as of December 31, 2022 (“annual consolidated financial statements”) presented in accordance with IFRS as issued by the IASB.

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

These condensed interim consolidated financial statements were approved by the Board of Directors’ meeting and authorized to be issued on August 10, 2023.

These condensed interim consolidated financial statements corresponding to the six-month period ended June 30, 2023 are unaudited. The Company believes they have included all necessary adjustments to reasonably present the results of each period on a basis consistent with the audited annual consolidated financial statements. Net Income for the six-month period ended June 30, 2023 does not necessarily reflect the proportion of the Group’s full-year Net Income.

2.b) Significant Accounting Policies

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

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

Functional and presentation currency

As mentioned in Note 2.b.1) to the annual consolidated financial statements, YPF has defined the dollar as its functional currency. Additionally, in accordance with the provisions of the LGS and the regulation of the CNV, the Company must present its financial statements in pesos.


Table of Contents

10

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

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

 

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND COMPARATIVE INFORMATION (UNAUDITED)

   LOGO

 

2.

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

 

On October 28, 2022, CNV General Resolution No. 941/2022 was published in the BO, which introduced certain provisions for issuers whose functional currency differs from the local legal currency in Argentina, which for their own transactions develop presentation and disclosure accounting policies in which the translation differences originated in the retained earnings and reserves accounts are filed in line with the items originating them. As a consequence of this Resolution, from fiscal year ended December 31, 2022, the Company’s Board of Directors decided, as an accounting policy, to directly classify and accumulate translation differences generated by retained earnings at the beginning and end of the fiscal year in the legal reserves account, the reserve for future dividends, the reserve for investments, the reserve for purchase of treasury shares and retained earnings, within Shareholders’ Equity, in compliance with the provisions of Note 2.b.1) to the annual consolidated financial statements. For the sake of uniformity of the comparative information reported in the statements of changes in shareholders’ equity, translation differences accumulated in “Other comprehensive income” have been appropriated to the aforementioned equity items as of June 30, 2022, in compliance with IAS 8 “Accounting policies, changes in accounting estimates and errors”.

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

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

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

Adoption of new standards and interpretations effective as from January 1, 2023

The Company has adopted all new and revised standards and interpretations, issued by the IASB, relevant to its operations which are of mandatory and effective application as of June 30, 2023, as described in Note 2.b.26) to the annual consolidated financial statements. New and revised standards and interpretations which had a significant impact on these condensed interim consolidated financial statements are described below:

•    Amendments to IAS 12 - Deferred tax related to assets and liabilities arising from a single transaction

The amendments introduce an exception to the initial recognition exemption, with specifications on how entities should account for the income tax and the deferred tax in transactions in which the initial recognition of assets and liabilities give rise, at the same time, to equal amounts of taxable and deductible temporary differences. Therefore, in transactions where an asset and a liability are recognized, for example in relation to leases and abandonment or decommissioning obligations, the deferred tax generated by such transactions should be recognized.

On January 1, 2023, in compliance with the amendments mentioned above, the Group breaks down deferred tax assets and liabilities arising from right-of-use-assets and lease liabilities. Also, the comparative information for fiscal year ended December 31, 2022 has been restated in compliance with IAS amendments (see Note 18). However, this had no effect on initial retained earnings.

•    Amendments to IAS 12 - International Tax Reform - Pillar Two Model Rules

In May 2023, the IASB issued amendments to IAS 12 related to the Pillar Two Model Rules of the International Tax Reform (“Reform”) developed by the Organization for Economic Co-operation and Development (“OECD”), which are applicable to fiscal years beginning on or after January 1, 2023.


Table of Contents

11

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

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

 

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND COMPARATIVE INFORMATION (UNAUDITED)

   LOGO

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

 

These amendments introduce a temporary exception to the requirements of IAS 12, allowing an entity not to recognize or disclose information about deferred taxes arising from the income tax effects of applying the Reform. Additionally, it requires certain additional disclosures in the annual financial statements.

As of the date of these condensed interim consolidated financial statements, the abovementioned amendments have had no effects on the Group as there is no tax regulatory framework related to such Reform in the jurisdictions where the Group operates. However, the Group is monitoring possible future changes in tax regulations.

Standards and interpretations issued as from January 1, 2023 by the IASB, the application of which is not mandatory as of the closing date of these condensed interim consolidated financial statements and, therefore, have not been adopted by the Group.

•    Amendments to IAS 7 “Statement of Cash Flows” and IFRS 7 “Financial Instruments: Disclosures” - Supplier Finance Arrangements

In May 2023, the IASB issued amendments to IAS 7 and IFRS 7 related to supplier finance arrangements, which are applicable to fiscal years beginning on or after January 1, 2024, allowing for their early application.

These amendments introduce new disclosure requirements of qualitative and quantitative information in the annual financial statements related to the mentioned supplier finance arrangements, such as contractual terms, carrying amounts of financial liabilities, settlements made, maturity dates, etc. The amendments do not require comparative information disclosure.

As of the date of issuance of these condensed interim consolidated financial statements, the Group is analyzing the effects of implementing these amendments, even though it does not expect them to have a significant impact on its financial statements.

2.c) Accounting Estimates and Judgments

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

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

Review of impairment indicators of property, plant and equipment

As explained in Notes 2.b.8) and 2.b.9) to the annual consolidated financial statements, as a general criteria, the method used to estimate the recoverable amount of property, plant and equipment consists of estimating the value-in-use based on the future expected cash flows arising from the use of such assets, discounted at a rate that reflects the weighted average cost of the capital employed.

Regarding interim periods, IAS 34 requires entities to apply the impairment testing of assets. When an entity has previously recognized impairment losses of assets, it is necessary to review the calculations made at the end of the period if the indicators that gave rise to such losses continue to remain present. To such end, the entity shall revise the existence of significant indicators of impairment or reversals since the end of the last fiscal year and determine whether it has to proceed or not with such impairment testing of assets.

2.d) Comparative information

Amounts and other information corresponding to the year ended December 31, 2022 and to the six-month period ended June 30, 2022 are an integral part of these condensed interim consolidated financial statements and are intended to be read only in relation to these financial statements.


Table of Contents

12

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

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

 

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND COMPARATIVE INFORMATION (UNAUDITED)

   LOGO

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

 

Likewise, changes in comparative figures as mentioned in Notes 2.b), 6 and 25 and certain additional disclosures of non-significant information have been made.

Additionally, as of the year ended December 31, 2022 the Group has made a change in the turnover tax charge presentation in the “Taxes, charges and contributions” line under “Selling expenses” (see Note 27), which was previously included in “Revenues”. The comparative information for the six and three-month periods ended June 30, 2022 has been restated. “Revenues” and “Selling expenses” increased by 31,241 and 17,959, respectively. This change had no effect on the Group’s statements of financial position, statements of changes in shareholders’ equity, statements of cash flows, operating profit or loss and net profit or loss.

3.    SEASONALITY OF OPERATIONS

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

4.    ACQUISITIONS AND DISPOSITIONS

During the six-month period ended June 30, 2023, there were no significant acquisitions and dispositions.

5.    FINANCIAL RISK MANAGEMENT

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

During the six-month period ended June 30, 2023, there were no significant changes in the administration or risk management policies implemented by the Group as described in Note 4 to the annual consolidated financial statements.

 

 

Liquidity risk management

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


Table of Contents

13

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

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

 

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND COMPARATIVE INFORMATION (UNAUDITED)

   LOGO

5.   FINANCIAL RISK MANAGEMENT (cont.)

 

The Group monitors compliance with covenants on a quaterly basis. As of June 30, 2023, the Group is in compliace with its covenants.

It should be noted that, under the terms and conditions of the loans that our subsidiary Metrogas has taken with Industrial and Commercial Bank of China Limited - Dubai Branch and Itaú Unibanco - Miami Branch, the interest coverage ratio would not have been complied with, which could have accelerated the maturities of these financial liabilities. However, the financial creditors formally accepted to waive Metrogas from complying with the contractual obligation related to such financial ratio, as of June 30, 2023.

6.   BUSINESS SEGMENT INFORMATION

The different business segments in which the Group’s organization is structured consider the different activities from which the Group can obtain revenues and incur expenses. This organizational structure is based on the way in which the highest decision-making authority analyzes the main financial and operating magnitudes for making decisions about resource allocation and performance assessment, also considering the business strategy of the Group. Business segment information is presented consistently with the way of reporting the information used by the highest decision-making authority to allocate resources and assess business segment performance.

As mentioned in Note 5 to the annual consolidated financial statements, business segment information is presented in US dollars, the Company’s functional currency (see Note 2.b.1) to the annual consolidated financial statements).

Due to the division of the Downstream Vice Presidency into the Commercialization Vice Presidency and the Industrialization Vice Presidency, from this fiscal year the new management scope of these new business units has been defined. These organizational changes resulted in a modification of the business segment structure in accordance with the manner in which the highest-decision making authority allocates resources and assesses the performance of such segments, dividing the Downstream segment into the Commercialization segment and the Industrialization segment, which, in addition, implied readjustments in the composition and definition of the businesses of the other segments. These business segment changes did not affect the CGUs defined in Note 2.b.8) to the annual consolidated financial statements.

In consideration of the above paragraphs, the comparative information for fiscal year ended December 31, 2022, and the period ended June 30, 2022, has been restated.

The business segment structure is organized as follows:

•    Upstream

The Upstream segment performs all activities related to field exploration and exploitation and production of oil and natural gas, and frac sand for well drilling purposes.

Its revenues are largely derived from: (i) the sale of the oil produced to the Industrialization and Commercialization segments; (ii) the sale of the natural gas produced to the Commercialization segment; and (iii) the sale of the natural gas retained in plant to the Gas and Power segment and the Commercialization segment.

It incurs all costs related to the activities mentioned above.

On January 1, 2023 certain assets related to the exploration, exploitation and production of frac sand for well-drilling, which were formerly included in Central Administration and Others, were assigned to the Upstream segment. In addition, the comparative information for fiscal year ended December 31, 2022 and the period ended June 30, 2022, has been restated.


Table of Contents

14

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

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

 

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND COMPARATIVE INFORMATION (UNAUDITED)

   LOGO

6.   BUSINESS SEGMENT INFORMATION (cont.)

 

•    Gas and Power

The Gas and Power segment performs activities related to: (i) commercial and technical operation of the LNG regasification terminals in Escobar and Bahía Blanca, by hiring regasification vessels; (ii) transportation, conditioning and processing of natural gas retained in plant for the separation and fractionation of gasoline, propane and butane; (iii) distribution of natural gas through its subsidiary Metrogas; and (iv) the storage of the natural gas produced. Also, through its investments in associates and joint ventures, it undertakes activities related to: (i) separation of natural gas liquids and their fractionation, storage and transportation for the production of ethane, propane, butane and gasoline; (ii) generation of conventional thermal electric power and renewable energy; and (iii) production, storage, distribution and sale of fertilizers.

Its revenues are largely derived from the distribution of natural gas through its subsidiary Metrogas, the sale of propane, butane and, marginally, the sale of natural gas produced and storaged to the Commercialization segment, the sale of gasoline to the Industrialization segment and the provision of LNG regasification services.

This segment incurs all costs related to the activities mentioned above, including the purchase of natural gas retained in plant from the Upstream segment and natural gas from the Commercialization segment for the distribution of natural gas through its subsidiary Metrogas.

On January 1, 2023, as a consequence of the organizational changes described above, the activities related to the sale of natural gas as producers were assigned to the Commercialization segment. In addition, the comparative information for fiscal year ended December 31, 2022, and the period ended June 30, 2022, has been restated.

•    Industrialization

The Industrialization segment performs activities related to: (i) crude oil refining and petrochemical production, and (ii) logistics related to the transportation of crude oil to refineries and the transportation and distribution of refined and petrochemical products to be marketed at the different sales channels.

Its revenues are derived primarily from the sale of refined and petrochemical products to the Commercialization segment and, marginally, from their sale to third parties.

This segment incurs all costs related to the activities mentioned above, including the purchase of crude oil from the Upstream segment and third parties, the purchase of gasoline from the Gas and Power segment and of natural gas to be consumed in the refinery and petrochemical industrial complexes from the Commercialization segment.

As of January 1, 2023, as a result of the organizational changes mentioned above, the Downstream segment is divided into the Commercialization segment and the Industrialization segment. Besides, the comparative information for the fiscal year ended December 31, 2022, and the period ended June 30, 2022, has been restated.

•    Commercialization

The Commercialization segment develops activities related to: (i) customer portfolio management; (ii) commercialization of oil, refined and petrochemical products; (iii) sale of natural gas, as producers, to third parties and to the Gas and Power and Industrialization segments; (iv) the purchase from third parties of specialties for the agribusiness industry; and (v) commercialization of specialties for the agribusiness industry and of grains and their by-products.

Its revenues are largely derived from the commercialization of oil, refined and petrochemical products, natural gas as producers, specialties for the agribusiness sector, and grains and their by-products. These operations are performed through the businesses of B2C (Retail), B2B (Industry, Agro, Lubricants and Specialties and Business Networks), LPG, Natural Gas, Chemicals, International Trade and Transportation.

This segment incurs all expenses related to the activities mentioned above, including the purchase of refined products from the Industrialization segment and third parties, petrochemicals from the Industrialization segment, propane and butane from the Gas and Power segment, and oil and natural gas from the Upstream segment, and the transportation of these products to the different sales channels.


Table of Contents

15

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

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

 

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND COMPARATIVE INFORMATION (UNAUDITED)

   LOGO

6.   BUSINESS SEGMENT INFORMATION (cont.)

 

As of January 1, 2023, as result of the organizational changes described above, the Downstream segment is divided into the Commercialization segment and the Industrialization segment, and all activities related to the commercialization of natural gas as producers, formerly performed by the Gas and Power segment, were assigned to the Commercialization segment. In addition, the comparative information for fiscal year ended December 2022 and the period ended June 30, 2022, has been restated.

•    Central Administration and Others

This segment covers other activities performed by the Group not falling under the business segments mentioned above and which are not reporting business segments, mainly comprising corporate administrative expenses and assets and construction activities.

Sales between business segments were made at internal transfer prices established by the Group, which generally seek to approximate domestic market prices.

Operating profit/loss and assets of each business segment have been determined after consolidation adjustments.


Table of Contents

16

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

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

 

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND COMPARATIVE INFORMATION (UNAUDITED)

   LOGO

6. BUSINESS SEGMENT INFORMATION (cont.)

 

    In millions of dollars   In millions of
pesos
        Upstream             Gas and  
Power
  Industrialization   Commercialization   Central
Administration
and Others
  Consolidation
Adjustments (1)
      Total           Total    

For the six-month period ended June 30, 2023

                 

Revenues

    85         316       144       7,935       133       -       8,613       1,857,088  

Revenues from intersegment sales

    3,639         93       5,854       137       512       (10,235)       -       -  
 

 

 

 

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

        3,724                409       5,998       8,072       645       (10,235)           8,613       1,857,088  
 

 

 

 

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating profit / (loss)

    219     (3)      (5)       343       116       (154)       37       556       88,249  

Income from equity interests in associates and joint ventures

    -         166       18       (1)       -       -       183       38,796  

Net financial results

                  142       53,068  

Net profit before income tax

                  881       180,113  

Income tax

                  (160)       (36,315)  

Net profit for the period

                  721       143,798  

Acquisitions of property, plant and equipment

    2,032         97       455       40       48       -       2,672       602,469  

Acquisitions of right-of-use assets

    77         18       3       13       -       -       111       25,435  

Other income statement items

                 

Depreciation of property, plant and equipment (2)

    1,204         32       206       26       32       -       1,500       321,285  

Amortization of intangible assets

    -         5       14       -       -       -       19       4,485  

Depreciation of right-of-use assets

    66         9       30       5       -       -       110       23,651  
Balance as of June 30, 2023                  

Assets

    12,309         2,811       7,139       2,481       2,399       (134)       27,005       6,926,664  


Table of Contents

17

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

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

 

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND COMPARATIVE INFORMATION (UNAUDITED)

   LOGO

6. BUSINESS SEGMENT INFORMATION (cont.)

 

    In millions of dollars   In millions
of pesos
      Upstream           Gas and  
Power
    Industrialization       Commercialization     Central
  Administration  
and Others
    Consolidation  
Adjustments (1)
      Total       Total

For the six-month period ended June 30, 2022

                 

Revenues

    80         317       83       8,144       131       -       8,755       997,421  

Revenues from intersegment sales

    3,328         101       5,748       146       335       (9,658)       -       -  
 

 

 

 

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

    3,408         418       5,831       8,290       466       (9,658)       8,755       997,421  
 

 

 

 

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating profit / (loss)

    582     (3)      28       745       223       (138)       (151)       1,289       140,805  

Income from equity interests in associates and joint ventures

    -         242       5       -       -       -       247       27,694  

Net financial results

                  (77)       (4,802)  

Net profit before income tax

                  1,459       163,697  

Income tax

                  (382)       (43,217)  

Net profit for the period

                  1,077       120,480  

Acquisitions of property, plant and equipment

    1,311         16       243       26       38       -       1,634       189,678  

Acquisitions of right-of-use assets

    100         -       -       30       -       -       130       15,586  

Other income statement items

                 

Depreciation of property, plant and equipment (2)

    921         26       201       27       43       -       1,218       137,369  

Amortization of intangible assets

    -         6       15       -       1       -       22       2,674  

Depreciation of right-of-use assets

    63         10       3       27       -       (3)       100       11,285  
Balance as of December 31, 2022                  

Assets

    11,528         2,797       6,732       3,216       1,807       (168)       25,912       4,588,159  

 

(1)

Corresponds to the elimination among business segments of the Group.

(2)

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

(3)

Includes US$ (6) million and US$ (7) million of unproductive exploratory drillings as of June 30, 2023 and 2022.


Table of Contents

18

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

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

 

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND COMPARATIVE INFORMATION (UNAUDITED)

   LOGO

 

7.   FINANCIAL INSTRUMENTS BY CATEGORY

Fair value measurements

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

The tables below show the Group’s financial assets measured at fair value as of June 30, 2023 and December 31, 2022, and their allocation to their fair value levels:

 

    As of June 30, 2023

Financial Assets

        Level 1                Level 2                Level 3                Total      

  Investments in financial assets: (1)

          

  - Public securities

    22,738            -            -        22,738  
 

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

    22,738            -            -        22,738  
 

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  Cash and cash equivalents:

          

  - Mutual funds

    95,230            -            -        95,230  
 

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

    95,230            -            -        95,230  
 

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

    117,968            -            -        117,968  
 

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

          
    As of December 31, 2022

Financial Assets

  Level 1    Level 2    Level 3    Total

  Investments in financial assets: (1)

          

  - Public securities

    13,029            -            -        13,029  
 

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

    13,029            -            -        13,029  
 

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  Cash and cash equivalents:

          

  - Mutual funds

    59,524            -            -        59,524  
 

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

    59,524            -            -        59,524  
 

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

    72,553            -            -        72,553  
 

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

 

(1)  

See Note 15.

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

Fair value estimates

During the six-month period ended June 30, 2023, there have been no changes in macroeconomic circumstances that significantly affect the Group’s financial instruments measured at fair value.

During the six-month period ended June 30, 2023, there were no transfers between the different hierarchies used to determine the fair value of the Group’s financial instruments.

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

The estimated fair value of loans, considering unadjusted listed prices (Level 1) for NO and interest rates offered to the Group (Level 3) for the other financial loans remaining, amounted to 1,800,692 and 1,029,019 as of June 30, 2023 and December 31, 2022, respectively.

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

8.   INTANGIBLE ASSETS

 

           June 30, 2023            December 31, 2022  

Net book value of intangible assets

     106,432        75,086  

Provision for impairment of intangible assets

     (10,190)        (7,034)  
  

 

 

 

  

 

 

 

     96,242        68,052  
  

 

 

 

  

 

 

 


Table of Contents

19

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

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

 

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND COMPARATIVE INFORMATION (UNAUDITED)

   LOGO

8.  INTANGIBLE ASSETS (cont.)

 

The evolution of the Group’s intangible assets for the six-month period ended June 30, 2023 and as of the year ended December 31, 2022 is as follows:

 

                                                                                                                                                                                           
     Service
      concessions      
         Exploration      
rights
   Other
      intangibles      
           Total        

Cost

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

Accumulated amortization

     66,452        -        38,913        105,365  
  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

Balance as of December 31, 2021

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

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

Cost

           

Increases

     3,483        -        691        4,174  

Translation effect

     68,572        9,893        27,427        105,892  

Adjustment for inflation (1)

     -        -        6,363        6,363  

Decreases, reclassifications and other movements

     -        (4,346)        -        (4,346)  

Accumulated amortization

           

Increases

     3,560        -        2,692        6,252  

Translation effect

     49,484        -        26,628        76,112  

Adjustment for inflation (1)

     -        -        2,107        2,107  

Decreases, reclassifications and other movements

     -        -        -        -  

Cost

     165,179        19,557        80,186        264,922  

Accumulated amortization

     119,496        -        70,340        189,836  
  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

Balance as of December 31, 2022

     45,683        19,557        9,846        75,086  
  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

Cost

           

Increases

     1,883        -        284        2,167  

Translation effect

     74,412        8,745        29,841        112,998  

Adjustment for inflation (1)

     -        -        6,986        6,986  

Decreases, reclassifications and other movements

     -        (96)        7        (89)  

Accumulated amortization

           

Increases

     2,927        -        1,558        4,485  

Translation effect

     54,212        -        28,690        82,902  

Adjustment for inflation (1)

     -        -        3,329        3,329  

Decreases, reclassifications and other movements

     -        -        -        -  

Cost

     241,474        28,206        117,304        386,984  

Accumulated amortization

     176,635        -        103,917        280,552  
  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

Balance as of June 30, 2023

     64,839        28,206        13,387        106,432  
  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

 

(1)

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

9. PROPERTY, PLANT AND EQUIPMENT

 

          June 30, 2023         December 31, 2022

Net book value of property, plant and equipment

    4,918,645       3,233,211  

Provision for obsolescence of materials and equipment

    (38,101)       (26,671)  

Provision for impairment of property, plant and equipment

    (120,365)       (106,234)  
 

 

 

 

 

 

 

 

    4,760,179       3,100,306  
 

 

 

 

 

 

 

 


Table of Contents

20

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

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

 

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND COMPARATIVE INFORMATION (UNAUDITED)

   LOGO

9.  PROPERTY, PLANT AND EQUIPMENT (cont.)

 

Changes in Group’s property, plant and equipment for the six-month periods ended June 30, 2023 and as of the year ended December 31, 2022 are as follows:

 

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

Cost

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

Accumulated depreciation

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance as of December 31, 2021

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost

                       

Increases

    141       49,165       9,433       1,654       129,830       441,811       6,152       181       -       -       5,104       643,471  

Translation effect

    86,377       3,647,068       634,515       32,957       75,915       218,533       2,401       58,485       99,489       -       47,208       4,902,948  

Adjustment for inflation (1)

    19,713       -       -       5,440       2,060       6,441       -       3,239       -       96,791       23,621       157,305  

Decreases, reclassifications and other movements

    3,095       271,295       38,007       3,058       (105,285)       (268,710)       (6,299)       2,599       3,004       6,171       384       (52,681)  

Accumulated depreciation

                       

Increases

    3,971       279,232       49,531       3,579       -       -       -       7,319       8,814       3,326       4,611       360,383  

Translation effect

    42,174       3,087,200       397,826       22,904       -       -       -       52,743       67,230       -       36,278       3,706,355  

Adjustment for inflation (1)

    10,376       -       -       3,617       -       -       -       2,872       -       49,332       15,453       81,650  

Decreases, reclassifications and other movements

    (55)       (4,752)       (55)       (1,079)       -       -       -       8       (1,349)       (1,475)       (171)       (8,928)  

Cost

    247,293       8,868,357       1,536,447       93,406       211,034       687,431       6,482       147,220       237,965       205,073       164,943       12,405,651  

Accumulated depreciation

    123,791       7,488,710       972,786       63,640       -       -       -       135,000       163,929       103,227       121,357       9,172,440  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance as of December 31, 2022

    123,502       1,379,647       563,661       29,766       211,034       687,431       6,482       12,220       74,036       101,846       43,586       3,233,211  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost

                       

Increases

    56       436       3,894       1,785       145,721       442,622       6,417       506       2       -       1,030       602,469  

Translation effect

    93,148       4,047,241       694,711       36,846       92,724       298,315       3,410       63,812       108,496       -       51,596       5,490,299  

Adjustment for inflation (1)

    20,947       -       -       6,496       2,205       5,367       -       3,529       -       103,931       25,629       168,104  

Decreases, reclassifications and other movements

    3,883       235,844       20,540       4,622       (109,394)       (227,001)       (1,228)       5,009       7,303       3,647       643       (56,132)  

Accumulated depreciation

                       

Increases

    3,215       288,200       38,697       3,515       -       -       -       3,886       6,805       2,926       3,755       350,999  

Translation effect

    46,345       3,413,953       444,501       25,271       -       -       -       58,587       74,678       -       39,646       4,102,981  

Adjustment for inflation (1)

    11,291       -       -       4,259       -       -       -       3,154       -       52,316       17,355       88,375  

Decreases, reclassifications and other movements

    1       (21,486)       -       (586)       -       -       -       1       (857)       (13)       (109)       (23,049)  

Cost

    365,327       13,151,878       2,255,592       143,155       342,290       1,206,734       15,081       220,076       353,766       312,651       243,841       18,610,391  

Accumulated depreciation

    184,643       11,169,377       1,455,984       96,099       -       -       -       200,628       244,555       158,456       182,004       13,691,746  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance as of June 30, 2023

    180,684       1,982,501       799,608       47,056       342,290       1,206,734       15,081       19,448       109,211       154,195       61,837       4,918,645  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

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


Table of Contents

21

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

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

 

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND COMPARATIVE INFORMATION (UNAUDITED)

   LOGO

9.  PROPERTY, PLANT AND EQUIPMENT (cont.)

 

The Group capitalizes the financial cost of loans as part of the cost of the assets. For the six-month periods ended June 30, 2023 and 2022, the rate of capitalization was 8.13% and 8.33%, respectively, and the amount capitalized amounted to 2,089 and 556, respectively.

Set forth below is the evolution of the provision for obsolescence of materials and equipment for the six-month period ended June 30, 2023 and as of the year ended December 31, 2022:

 

       Provision for obsolescence  
  of materials and equipment  

Balance as of December 31, 2021

     12,576  
  

 

 

 

Increases charged to profit or loss

     4,775  

Applications due to utilization

     (382)  

Translation differences

     9,624  

Adjustment for inflation (1)

     78  
  

 

 

 

Balance as of December 31, 2022

     26,671  
  

 

 

 

Increases charged to profit or loss

     326  

Applications due to utilization

     (783)  

Translation differences

     11,740  

Adjustment for inflation (1)

     147  
  

 

 

 

Balance as of June 30, 2023

     38,101  
  

 

 

 

 

(1)

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

Set forth below is the evolution of the provision for impairment of property, plant and equipment for the six-month period ended June 30, 2023 and as of the year ended December 31, 2022:

 

         Provision for impairment of  
property, plant and

equipment

Balance as of December 31, 2021

     66,793  
  

 

 

 

Increases charged to profit or loss (1)

     18,427  

Depreciation (2)

     (22,364)  

Translation differences

     42,678  

Adjustment for inflation (3)

     700  
  

 

 

 

Balance as of December 31, 2022

     106,234  
  

 

 

 

Increases charged to profit or loss

     -  

Depreciation (2)

     (29,714)  

Translation differences

     43,078  

Adjustment for inflation (3)

     767  
  

 

 

 

Balance as of June 30, 2023

     120,365  
  

 

 

 

 

(1)

See Notes 2.c) and 8 to the annual consolidated financial statements.

(2)

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

(3)

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


Table of Contents

22

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

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

 

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND COMPARATIVE INFORMATION (UNAUDITED)

   LOGO

 

10. RIGHT-OF-USE ASSETS

The evolution of the Group’s right-of-use assets for the six-month period ended June 30, 2023 and as of the year ended December 31, 2022 are as follows:

 

           Land and      
buildings
 

  

   Exploitation
    facilities and    
equipment
 

  

   Machinery
and
    equipment    
 

  

       Gas stations      

  

       Transportation    
equipment
 

  

           Total        

Cost

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

Accumulated depreciation

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

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Balance as of December 31, 2021

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

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Cost

                           

Increases

     402          21,655          2,330          676          20,265          45,328  

Translation effect

     2,347          30,633          21,376          6,025          25,259          85,640  

Adjustment for inflation (1)

     66          -          -          2,012          -          2,078  

Decreases, reclassifications and other movements

     (391)          (878)          (2,324)          (1,407)          (11,212)          (16,212)  

Accumulated depreciation

                           

Increases

     1,092          10,878          7,529          1,626          14,614          35,739  

Translation effect

     1,199          19,894          14,611          2,288          13,198          51,190  

Adjustment for inflation (1)

     63          -          -          951          -          1,014  

Decreases, reclassifications and other movements

     (161)          (214)          (1,911)          (797)          (10,514)          (13,597)  

Cost

     5,821          87,518          50,190          17,582          65,670          226,781  

Accumulated depreciation

     3,318          53,271          37,051          7,806          29,587          131,033  
  

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Balance as of December 31, 2022

     2,503          34,247          13,139          9,776          36,083          95,748  
  

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Cost

                           

Increases

     3,391          14,708          7,336          -          -          25,435  

Translation effect

     2,546          41,155          23,993          6,048          29,463          103,205  

Adjustment for inflation (1)

     74          -          -          2,136          -          2,210  

Decreases, reclassifications and other movements

     (327)          -          -          -          -          (327)  

Accumulated depreciation

                           

Increases

     632          11,912          4,260          1,216          12,692          30,712  

Translation effect

     1,554          26,350          17,500          2,638          16,046          64,088  

Adjustment for inflation (1)

     73          -          -          1,236          -          1,309  

Decreases, reclassifications and other movements

     (119)          -          -          -          -          (119)  

Cost

     11,505          143,381          81,519          25,766          95,133          357,304  

Accumulated depreciation

     5,458          91,533          58,811          12,896          58,325          227,023  
  

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Balance as of June 30, 2023

     6,047          51,848          22,708          12,870          36,808          130,281  
  

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

 

(1)

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

11. INVESTMENTS IN ASSOCIATES AND JOINT VENTURES

The following table shows the value of the investments in associates and joint ventures at an aggregate level, as of June 30, 2023 and December 31, 2022:

 

           June 30, 2023           December 31, 2022  

Amount of investments in associates

     47,190       30,525  

Amount of investments in joint ventures

     416,340       306,650  
  

 

 

 

 

 

 

 

     463,530       337,175  
  

 

 

 

 

 

 

 


Table of Contents

23

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

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

 

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND COMPARATIVE INFORMATION (UNAUDITED)

   LOGO

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

 

The main movements during the six-month period ended June 30, 2023 and as of the year ended December 31, 2022 which affected the value of the aforementioned investments, correspond to:

 

      Investments in associates 
and joint ventures

Balance as of December 31, 2021

     156,925  
  

 

 

 

Acquisitions and contributions

     270  

Income on investments in associates and joint ventures

     58,082  

Translation differences

     123,223  

Distributed dividends

     (12,157)  

Adjustment for inflation (1)

     10,749  

Capitalization in associates and joint ventures

     83  
  

 

 

 

Balance as of December 31, 2022

     337,175  
  

 

 

 

Acquisitions and contributions

     1,174  

Income on investments in associates and joint ventures

     38,796  

Translation differences

     134,313  

Distributed dividends

     (58,654)  

Adjustment for inflation (1)

     10,726  

Capitalization in associates and joint ventures

     -  
  

 

 

 

Balance as of June 30, 2023

     463,530  
  

 

 

 

  

 

(1)

Corresponds to adjustment for inflation of opening balances of associates and joint ventures with the peso as functional currency which was charged to “Other comprehensive income” in the statement of comprehensive income. See Note 2.b.1) to the annual consolidated financial statements.

The following table shows the principal amounts of the results of the investments in associates and joint ventures of the Group, calculated according to the equity method therein, for the six-month periods ended June 30, 2023 and 2022. The values reported by these companies have been adjusted, if applicable, to adapt them to the accounting policies used by the Company for the calculation of the equity method value in the aforementioned dates:

 

     Associates          Joint ventures  
             For the six-month periods         
ended June 30,
                 For the six-month periods         
ended June 30,
 
     2023      2022          2023      2022  

Net income

     2,742          614            36,054          27,080    

Other comprehensive income

     14,263          3,047            130,776          34,630    
  

 

 

    

 

 

      

 

 

    

 

 

 

Comprehensive income for the period

     17,005          3,661            166,830          61,710    
  

 

 

    

 

 

      

 

 

    

 

 

 

The Company has no investments in subsidiaries with significant non-controlling interests. Likewise, the Company has no significant investments in associates and joint ventures, except for the investment in YPF EE.


Table of Contents

24

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

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

 

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND COMPARATIVE INFORMATION (UNAUDITED)

   LOGO

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

 

The financial information corresponding to YPF EE’s assets and liabilities as of June 30, 2023 and December 31, 2022, as well as the results for the six-month periods ended June 30, 2023 and 2022, are detailed below:

 

            June 30, 2023 (1)              December 31, 2022 (1)  

Total non-current assets

    511,070,402       325,583,892  

Cash and cash equivalents

    42,134,374       16,684,788  

Other current assets

    51,552,089       31,531,592  

Total current assets

    93,686,463       48,216,380  
 

 

 

 

 

 

 

 

Total assets

    604,756,865       373,800,272  
 

 

 

 

 

 

 

 

Financial liabilities (excluding Accounts Payable, Provisions and Other Liabilities)

    215,548,231       127,658,505  

Other non-current liabilities

    28,337,464       17,103,150  

Total non-current liabilities

    243,885,695       144,761,655  

Financial liabilities (excluding Accounts Payable, Provisions and Other Liabilities)

    26,868,029       26,591,063  

Other current liabilities

    21,625,933       19,627,928  

Total current liabilities

    48,493,962       46,218,991  
 

 

 

 

 

 

 

 

Total liabilities

    292,379,657       190,980,646  
 

 

 

 

 

 

 

 

   
 

 

 

 

 

 

 

 

Total shareholders’ equity

    312,377,208       182,819,626  
 

 

 

 

 

 

 

 

   

Dividends received

    9,000,000       4,500,000  
    For the six-month periods ended June 30,
    2023 (1)   2022 (1)

Revenues

    53,641,741       26,265,398  

Interest income

    9,783,322       2,461,004  

Depreciation and amortization

    (13,591,616)       (5,941,581)  

Interest loss

    (6,228,580)       (4,056,198)  

Income tax

    1,893,538       (1,542,785)  

Operating profit

    32,084,014       13,847,420  
 

 

 

 

 

 

 

 

Net profit

    20,995,669       8,821,426  

Other comprehensive income

    89,658,379       22,289,550  
 

 

 

 

 

 

 

 

Total comprehensive income

    110,654,048       31,110,976  
 

 

 

 

 

 

 

 

 

(1)

The financial information arises from the consolidated financial statements of YPF EE and the amounts are expressed in thousands of pesos. On this information, accounting adjustments have been made for the calculation of equity interest and results of YPF EE. The equity and adjusted results do not differ significantly from the financial information disclosed here.


Table of Contents

25

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

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

 

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND COMPARATIVE INFORMATION (UNAUDITED)

   LOGO

 

12. INVENTORIES

 

     June 30, 2023          December 31, 2022      

Refined products

     335,425          202,465    

Crude oil and natural gas

     112,907          79,511    

Products in process

     12,046          9,083    

Raw materials, packaging materials and others

     24,957          16,707    
  

 

 

      

 

 

   
                         485,335     (1)                           307,766     (1) 
  

 

 

      

 

 

   

 

(1)

As of June 30, 2023 and December 31, 2022, the cost of inventories does not exceed their net realizable value.

13. OTHER RECEIVABLES

 

    June 30, 2023       December 31, 2022
    Non-current   Current       Non-current   Current

Receivables from services and sales of other assets

    651        2,788          2,238        663   

Tax credit and export rebates

    38,816       12,675         27,086       61,958  

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

    9,420       2,427         1,750       5,359  

Collateral deposits

    2       77,465       (3)        2       961  

Prepaid expenses

    4,892       13,910         4,091       7,193  

Advances and loans to employees

    106       1,992         97       948  

Advances to suppliers and custom agents (2)

    -       29,144         -       29,269  

Receivables with partners in JO

    2,722       41,014         2,752       31,659  

Insurance receivables

    -       -         -       60  

Miscellaneous

    1,650       5,983         1,144       5,301  
 

 

 

 

 

 

 

 

   

 

 

 

 

 

 

 

    58,259       187,398         39,160       143,371  

Provision for other doubtful receivables

    (3,900)       (139)         (2,692)       (140)  
 

 

 

 

 

 

 

 

   

 

 

 

 

 

 

 

                      54,359                       187,259                           36,468                       143,231  
 

 

 

 

 

 

 

 

   

 

 

 

 

 

 

 

 

(1)

See Note 37 for information about related parties.

(2)

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

(3)

Includes balances granted as guarantee for the Trust Settlement Agreement. See Note 33.

14. TRADE RECEIVABLES

 

                                                                                                                                                   
    June 30, 2023   December 31, 2022
    Non-current   Current   Non-current   Current

Accounts receivable and related parties (1) (2)

    11,035       367,004       10,815       279,611  

Provision for doubtful trade receivables

    (9,788)       (17,997)       (9,788)       (13,410)  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    1,247       349,007       1,027       266,201  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

See Note 37 for information about related parties.

(2)

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

Set forth below is the evolution of the provision for doubtful trade receivables for the six-month period ended June 30, 2023 and for the fiscal year ended December 31, 2022:

 

    Provision for doubtful trade
receivables
          Non-current                       Current        

Balance as of December 31, 2021

    9,788       (2)        10,432  
 

 

 

 

   

 

 

 

Increases charged to expenses

    -         3,324  

Decreases charged to income

    -         (853)  

Applications due to utilization

    -         (897)  

Reclassifications

    -         -  

Net exchange and translation differences

    -         2,098  

Result from net monetary position (1)

    -         (694)  
 

 

 

 

   

 

 

 

Balance as of December 31, 2022

    9,788       (2)        13,410  
 

 

 

 

   

 

 

 

Increases charged to expenses

    -         2,732  

Decreases charged to income

    -         (435)  

Applications due to utilization

    -         (16)  

Reclassifications

    -         23  

Net exchange and translation differences

    -         2,398  

Result from net monetary position (1)

    -         (115)  
 

 

 

 

   

 

 

 

Balance as of June 30, 2023

    9,788       (2)        17,997  
 

 

 

 

   

 

 

 

 

(1)

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

(2)

Mainly including credits with natural gas distributors for the accumulated daily differences pursuant to Decree No. 1,053/2018, see Note 35.c.1) to the annual consolidated financial statements.


Table of Contents

26

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

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

 

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND COMPARATIVE INFORMATION (UNAUDITED)

   LOGO

 

15. INVESTMENTS IN FINANCIAL ASSETS

 

    June 30, 2023   December 31, 2022
    Non-current   Current   Non-current   Current

Investments at amortized cost

       

Public securities (1)

    14,829        35,319        35,664        28,675   

Private securities - NO

    1,804       -       -       532  

Term deposits (2)

    -       19,620       -       14,253  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                        16,633                           54,939                           35,664                           43,460  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments at fair value with changes in results

       

Public securities (1)

    -       22,738       -       13,029  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    -       22,738       -       13,029  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    16,633       77,677       35,664       56,489  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

See Note 37.

(2)

Corresponds to term deposits with the BNA.

16. CASH AND CASH EQUIVALENTS

 

     June 30, 2023        December 31, 2022

Cash and banks (1)

     89,230           65,407   

Short-term investments

     114,728       (2)         11,943  

Financial assets at fair value with changes in results (3)

     95,230          59,524  
  

 

 

 

    

 

 

 

                         299,188                              136,874  
  

 

 

 

    

 

 

 

 

(1)

Includes balances granted as collateral. See Note 34.e) to the annual consolidated financial statements.

(2)

Includes 22,662 of term deposits and other investments with the BNA.

(3)

See Note 7.

17. PROVISIONS

Changes in the Group’s provisions for the six-month period ended June 30, 2023 and for the fiscal year ended December 31, 2022 are as follows:

 

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

Balance as of December 31, 2021

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

 

 

 

    

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Increases charged to expenses

     30,082      (2)       10        10,509        -        28,139        -        68,730        10   

Decreases charged to income

     (60,624)     (3)       (11)       (257)       -       (7,320)       -       (68,201)       (11)  

Applications due to utilization

     (2,003)          (4,301)       -       (6,887)       -       (8,160)       (2,003)       (19,348)  

Reclassifications and other movements

     (7,245)     (4)       4,254       (7,935)                 7,935               31,656               15,667               16,476               27,856  

Net exchange and translation differences

             51,526                    1,563                 4,871       12       125,462       5,602       181,859       7,177  

Result from net monetary position (1)

     (126)          -       -       -       -       -       (126)       -  
  

 

 

 

    

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance as of December 31, 2022

     101,083          3,719       16,990       8,083       337,140       23,179       455,213       34,981  
  

 

 

 

    

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Increases charged to expenses

     8,826          510       6,965       -       27,902       -       43,693       510  

Decreases charged to income

     (4,990)          -       -       -       -       -       (4,990)       -  

Applications due to utilization

     (396)          (2,961)       -       (5,358)       -       (13,991)       (396)       (22,310)  

Reclassifications and other movements

     (92,495)     (5)       64,074       (9,540)       9,540       (13,731)       13,731       (115,766)       87,345  

Net exchange and translation differences

     16,457          15,710       4,031       75       155,038       10,660       175,526       26,445  

Result from net monetary position (1)

     -          -