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 November 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

YPF S.A.’s third quarter 2023 consolidated results.


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Basis of Presentation

As from 4Q2022, the financial information in this document is expressed, unless otherwise indicated, in U.S. dollars corresponding to the functional currency of YPF S.A. The information is based on the financial statements prepared in accordance with IFRS in force in Argentina. On the other hand, the financial information of previous periods is restated in U.S. dollars corresponding to the functional currency of YPF S.A (in replacement of the individual financial results of YPF S.A. expressed in Argentine pesos divided by the average exchange rate for the period).

Certain monetary amounts and other figures included in this report have been subject to rounding adjustments. Any discrepancies in any tables between the totals and the sums of the amounts are due to rounding.

 

Summary Consolidated Financials

Unaudited Figures, in US$ million

   3Q22      2Q23     3Q23     Y/Y Δ     Q/Q Δ     9M22      9M23     Y/Y Δ  

Revenues

     5,357        4,375       4,504       -15.9     2.9     14,112        13,117       -7.1

EBITDA

     1,580        1,075       992       -37.2     -7.7     4,216        3,183       -24.5

Adjusted EBITDA

     1,506        1,005       926       -38.5     -7.8     4,014        2,976       -25.9

Operating income before impairment of assets

     849        221       119       -86.0     -46.2     2,138        675       -68.4

Operating income / (loss)

     751        221       (387     N/A       N/A       2,040        169       -91.7

Net income before impairment of assets

     757        380       192       -74.6     -49.5     1,834        913       -50.2

Net result

     693        380       (137     N/A       N/A       1,770        584       -67.0

EPS

     1.76        0.86       (0.33     N/A       N/A       4.48        1.40       -68.8

CAPEX

     1,137        1,374       1,546       36.0     12.6     2,771        4,218       52.2

FCF

     243        (284     (379     N/A       33.5     943        (680     N/A  

Cash and cash equivalents

     1,335        1,470       1,478       10.8     0.5     1,335        1,478       10.8

Total debt

     6,989        7,782       8,153       16.6     4.8     6,989        8,153       16.6

EBITDA = Operating income + Depreciation of PP&E + Depreciation of the right of use assets + Amortization of intangible assets + Unproductive exploratory drillings + (Reversal) / Deterioration of PP&E. Adjusted EBITDA = EBITDA that excludes IFRS 16 effects +/- one-off items.

Cash and cash equivalents: Include current investment in financial assets.

EPS attributable to shareholders of the parent company (basic and diluted).

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

1. MAIN HIGHLIGHTS

 

   

Adjusted EBITDA reached US$926 million, 8% down sequentially, mainly driven by a decline in local fuel prices in dollars, partially offset by seasonal higher natural gas sales.

 

   

Total hydrocarbon production averaged 520 Kboe/d increasing 1% sequentially and growing 3% on a year-on-year basis, mainly boosted by the expansion of 5% in our crude oil production.

 

   

Shale oil production continued delivering an impressive growth rate of 20% y/y, while shale gas production increased by 6% y/y. On a sequential basis, shale oil production recorded a slight decline of 3% mainly due to the interference effects of new well construction activity over existing production in our core-hub fields, fully recovered during October, and an expansion of 7% in shale gas production.

 

   

Medanito oil exports to Chile continued growing, averaging almost 19 Kbbl/d, representing 8% of total oil production and 13% of Medanito oil production during the quarter.

 

   

Volumes of fuels sold in the domestic market reached the highest level ever dispatched in any given quarter, jumping 3% q/q and 2% y/y.

 

 

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Processing levels at our refineries contracted by 1% y/y and 10% q/q, primarily driven by programmed maintenance stoppages at La Plata and Luján de Cuyo refineries.

 

   

Total OPEX was flat q/q and increased 11% y/y on the back of a negative inter-annual evolution of macroeconomic variables, coupled with higher maintenance activity and transportation costs recorded during the period.

 

   

CAPEX activity totaled US$1,546 million (+13% q/q and +36% y/y), being on track to fully deploy the investment plan of the year, which is expected to end with a slight upward deviation as a result of higher costs in dollar terms.

 

   

Free cash flow totaled a negative US$379 million during the third quarter, as the deployment of our investment plan was not fully compensated by the cash flow from operations, taking our net debt to US$6,675 million and resulting in a net leverage ratio of 1.7x.

 

 

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2. ANALYSIS OF CONSOLIDATED RESULTS

 

Consolidated Revenues Breakdown

Unaudited Figures, in US$ million

   3Q22      2Q23      3Q23      Y/Y Δ     Q/Q Δ     9M22      9M23      Y/Y Δ  

Diesel

     1,954        1,639        1,563        -20.0     -4.6     5,007        4,821        -3.7

Gasoline

     879        833        824        -6.2     -1.0     2,575        2,550        -0.9

Natural gas as producers (third parties)

     470        386        464        -1.3     20.3     1,194        1,120        -6.2

Other

     1,424        1,124        1,174        -17.6     4.5     3,536        3,275        -7.4
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Total Domestic Market

     4,727        3,982        4,025        -14.8     1.1     12,312        11,766        -4.4
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Jet fuel

     135        107        127        -5.9     18.8     349        395        13.2

Grain and flours

     217        46        26        -88.0     -43.5     632        77        -87.8

Crude oil

     0        46        152        N/A       231.7     5        210        3980.2

Petchem & Other

     278        195        173        -37.6     -10.9     814        668        -17.9
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Total Export Market

     630        393        479        -24.0     21.6       1,800        1,351        -25.0
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Total Revenues

     5,357        4,375        4,504        -15.9     2.9     14,112        13,117        -7.1
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

During 3Q23, revenues totaled US$4,504 million, increasing by 2.9% q/q and decreasing by 15.9% y/y. On a sequential basis, revenues increased primarily as the result of higher crude oil exports, larger natural gas sales and an increase in volumes dispatched of diesel and gasoline in the local market, partially offset by a decline in domestic fuel prices in dollars terms.

When analyzing 3Q23 revenues, it is worth highlighting:

 

   

Diesel sales in the domestic market (retail and wholesale) – 34.7% of total revenues – decreased 4.6% q/q due to a 6.5% contraction in prices, partially offset by a 2.0% expansion in volumes dispatched.

 

   

Gasoline sales in the local market – 18.3% of total revenues – decreased by 1.0% q/q, primarily due to a 5.6% drop in prices while volumes expanded by 4.8%

 

   

Natural gas sales as producers sold to third parties in the domestic market - representing 10.3% of total revenues – went up 20.3% q/q mainly due to higher average realization prices of 11.2% driven by the seasonality factor included in the Plan Gas between May and September, while volumes sold rose by 8.1%.

 

   

Other domestic sales increased by 4.5% q/q mainly due to higher seasonal sales of natural gas to the retail distribution segment – through our subsidiary Metrogas S.A. (“Metrogas”) – and fertilizers.

 

   

Export revenues increased 21.6% q/q, primarily due to higher crude oil exports to Chile through the trans-andean pipeline, partially compensated by lower non-oil agro exports.

 

 

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Unaudited Figures, in US$ million

   3Q22     2Q23     3Q23     Y/Y Δ     Q/Q Δ     9M22     9M23     Y/Y Δ  

Lifting cost

     (631     (746     (746     18.3     0.0     (1,774     (2,163     21.9

Other Upstream

     (120     (124     (112     -7.0     -10.0     (314     (351     11.9

Industrialization cost

     (409     (446     (451     10.2     1.0     (1,103     (1,311     18.9

Commercialization, G&P, Corp. & Other

     (274     (271     (277     1.2     2.1     (648     (755     16.4
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total OPEX

     (1,434     (1,588     (1,586     10.6     -0.1     (3,839     (4,580     19.3
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Depreciation & Amortization

     (724     (854     (864     19.3     1.2     (2,064     (2,493     20.8

Royalties

     (263     (247     (248     -5.5     0.5     (719     (731     1.7

Other costs

     (330     (260     (281     -15.0     8.0     (911     (790     -13.3
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Other Costs

     (1,317     (1,361     (1,393     5.8     2.4     (3,694     (4,014     8.7
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Fuels imports

     (596     (192     (262     -56.0     36.7     (1,286     (854     -33.6

Crude oil purchases to third parties

     (362     (323     (308     -15.0     -4.8     (927     (1,018     9.8

Biofuel purchases

     (301     (230     (197     -34.7     -14.3     (718     (656     -8.6

Non-oil agro purchases

     (387     (253     (194     -49.8     -23.2     (1,080     (561     -48.0

Other purchases

     (364     (244     (315     -13.4     29.0     (876     (783     -10.6

Stock variations

     277       25       (127     N/A       N/A       491       24       -95.1
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Purchases & Stock Variations

     (1,733     (1,217     (1,403     -19.0     15.3     (4,395     (3,848     -12.4
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Other operating results, net

     (24     12       (3     -87.5     N/A       (46     —         N/A  

Impairment of assets

     (98     —         (506     416.3     N/A       (98     (506     416.3
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating Costs + Purchases + Impairment of Assets

     (4,606     (4,154     (4,891     6.2     17.7     (12,072     (12,948     7.3
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Stock variations include price effects by US$ 152 million in 3Q22, US$(36) million for 2Q23 and US$ 32 million for 3Q23.

In terms of costs, operating expenses (“OPEX”) in 3Q23 totaled US$1,586 million, remaining essentially flat compared to 2Q23 primarily driven by the evolution of the macroeconomic variables during the quarter particularly affected by a discrete devaluation of the local currency that took place in mid-August, fully offset by inflation and wages increases and higher transportation and maintenance activity . When compared to the same period of last year, total OPEX increased by 10.6%, driven by the inflationary environment, coupled with an overall activity increase across all our businesses, on the back of higher O&G production and higher transportation cost due to an increase of refined products sales. As a consequence, unit OPEX per barrel of hydrocarbon produced, decreased by 2.5% q/q and increased 7.4% y/y.

Total Purchases and Stock Variations, a category highly correlated with demand levels for refined and agrobusiness products and inventory valuation, increased by 15.3% q/q and decreased 19.0% y/y.

When analyzing 3Q23 purchases, it is worth highlighting:

 

   

Fuels imports, excluding jet fuel, which represented 6.7% of total gasoline and diesel sales, increased by 24.9% q/q, driven by higher prices of 16.2% and higher imported volumes of 7.5%. During the quarter, only diesel was imported, which combined with a significant reduction in gasoline and diesel inventories, allowed to meet the higher demand recorded in Q3.

 

   

Crude oil purchases decreased by 4.8% q/q, due to lower prices of 5.6%, aligned with the downward trend of fuels prices recorded in 3Q23, partially offset by a decrease in volumes of 0.9% due to lower processing levels.

 

   

Biofuel purchases decreased by 14.3%, where purchases of biodiesel declined 21.2% and purchases of bioethanol dropped 7.7%. Biodiesel purchases contraction was mainly the result of a lower blend in diesel sales caused by reduced availability in the local market, while bioethanol purchases decreased mainly as a result of lower prices in dollar terms.

 

   

Non-oil agro purchases decreased by 23.2% sequentially, as a result of lower seasonal demand of grains and flours, aligned with the lower sales of these products.

 

 

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In terms of our inventories, a negative stock variation of US$127 million was recorded during 3Q23, mainly driven by lower inventories of gasoline and diesel products, partially offset by higher replacement costs of our inventories; in comparison with a positive stock variation of US$25 million accounted in 2Q23.

During the quarter, the Company recognized a non-recurring impairment charge in our natural gas assets of 506 million dollars, pre-tax, primarily on the back of lower long-term expected prices as a result of increased competition and potential oversupply in the domestic natural gas market in coming years. The charge for deterioration was allocated in the CGU Gas - Neuquén Basin and has not impacted the cash flow generation.

 

Consolidated Net Income Breakdown

Unaudited Figures, in US$ million

   3Q22     2Q23     3Q23     Y/Y Δ     Q/Q Δ     9M22     9M23     Y/Y Δ  

Operating income / (loss)

     751       221       (387     N/A       N/A       2,040       169       -91.7
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income from equity interests in associates and joint ventures

     141       94       44       -68.8     -53.2     388       227       -41.5

Financial results, net

     85       140       206       142.4     47.1     8       348       4250.0
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net result before tax

     977       455       (137     N/A       N/A       2,436       744       -69.5
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income tax

     (284     (75     0       N/A       N/A       (666     (160     -76.0
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net result

     693       380       (137     N/A       N/A       1,770       584       -67.0
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net Income before impairment of assets

     757       380       192       -74.6     -49.5     1,834       913       -50.2
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net financial results for 3Q23 represented a US$206 million gain compared to the gain of US$140 million in 2Q23. This was primarily as a result of the higher devaluation of the local currency resulting in an increase of net FX gains.

As a result of the operating and financial evolution, result before taxes and net result in 3Q23 reached a negative mark of US$137 million, compared to a gain of US$455 and US$380 million, respectively, posted in 2Q23. The income tax charge was neutral mainly driven by renewed estimates on the net result before taxes and the income tax rate for FY2023.

 

 

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3. EBITDA AND ADJUSTED EBITDA RECONCILIATION

Adjusted EBITDA for 3Q23 reached a quarterly mark of US$926 million, decreasing 7.8% when compared to 2Q23. This variation was mainly due to a decline in fuels prices and a downward trend in the prices of other refined products, other than gasoline and diesel, partially offset by higher gas natural sales.

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

 

Reconciliation of Adjusted EBITDA

Unaudited Figures, in US$ million

   3Q22     2Q23     3Q23     Y/Y Δ     Q/Q Δ     9M22     9M23     Q/Q Δ  

Net result

     693       380       (137     N/A       N/A       1,770       584       -67.0

Financial results, net

     (85     (140     (206     142.4     47.1     (8     (348     4250.0

Income from equity interests in associates and joint ventures

     (141     (94     (44     -68.8     -53.2     (388     (227     -41.5

Income tax

     284       75       —         N/A       N/A       666       160       -76.0

Unproductive exploratory drillings

     7       —         9       28.6     N/A       14       15       7.1

Depreciation & amortization

     724       854       864       19.3     1.2     2,064       2,493       20.8

Impairment of assets

     98       —         506       416.3     N/A       98       506       416.3
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA

     1,580       1,075       992       -37.2     -7.7     4,216       3,183       -24.5
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Leasing

     (74     (70     (66     -11.1     -6.1     (202     (207     2.4
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

     1,506       1,005       926       -38.5     -7.8     4,014       2,976       -25.9
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

EBITDA breadkdown by segment

Unaudited Figures, in US$ million

   Upstream     Industrialization     Commercialization     Gas & Power     Corporate &
Other
    Consolid.
Adjustments
    Total  

Operating income / (loss)

     (436     (93     88       29       (94     119       (387

Depreciation & amortization

     693       124       18       16       15       (1     864  

Unproductive exploratory drillings

     9       —         —         —         —         —         9  

Impairment of assets

     506       —         —         —         —         —         506  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA

     772       31       106       45       (79     118       992  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Leasing

     (37     (18     (3     (8     —         —         (66

Other adjustments

     —         —         —         —         —         —         —    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

     735       13       102       37       (79     118       926  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

 

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The main causes of the sequential variations in Adjusted EBITDA between 3Q23 and 2Q23 are displayed in the following chart:

 

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Upstream (US$31 million): The positive variation was driven by higher hydrocarbon production and natural gas prices, as well as lower OPEX, partially offset by lower prices of crude oil.

 

   

Industrialization (-US$201 million): The EBITDA contraction was mainly due to lower local fuels and other refined and petrochemical products prices, a contraction of 9.5% in processing levels and a negative non-recurrent retroactive charge of transportation costs accounted to the Commercialization segment.

 

   

Commercialization (US$40 million): The EBITDA increase was primarily due to higher volumes of local fuels sold and the positive effect of the intersegment non-recurrent charge aforementioned, partially offset by higher OPEX.

 

   

Gas & Power (-US$5 million): The EBITDA decrease can be explained mainly due to lower Metrogas results, impacted by lower natural gas prices.

 

   

Corporate & Eliminations (US$56 million): The variation is mainly explained by a positive replacement cost charge of our inventories recorded in Q3, vis-à-vis a negative replacement cost charge accounted in the previous quarter, partially offset by higher corporate OPEX in the third quarter.

 

 

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The main causes of the y/y variations in Adjusted EBITDA between 3Q23 and 3Q22, are described in the chart below:

 

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Upstream (-US$185 million): The negative variation was driven by higher OPEX and lower prices of crude oil and natural gas, partially offset by the 3.0% expansion in hydrocarbon production.

 

   

Industrialization (-US$271 million): The EBITDA decrease was mainly due to higher OPEX, including a negative non-recurrent retroactive charge of transportation costs to the Commercialization segment, lower local fuels prices of 18% and a significant reduction of 29% in petrochemical & other refined products prices, partially offset by lower fuels imports.

 

   

Commercialization (-US$11 million): The EBITDA contraction was primarily due to higher OPEX and lower prices of local fuels and petrochemical & other refined products prices of 18% and 29%, respectively, partially offset by the positive non-recurrent charge mentioned above.

 

   

Gas & Power (-US$12 million): The EBITDA contraction can be explained mainly due to higher OPEX and lower LPG and gasolines prices.

 

   

Corporate & Eliminations (-US$100 million): The variation is mainly explained by higher corporate OPEX and a negative replacement cost charge of our inventories, in comparison with a positive replacement cost charge recorded last year.

 

 

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4. ANALYSIS OF RESULTS BY BUSINESS SEGMENT

4.1. UPSTREAM

 

Upstream Operating data

Unaudited Figures

   3Q22      2Q23      3Q23      Y/Y Δ     Q/Q Δ     9M22      9M23      Y/Y Δ  

Net Production Breakdown

                     

Crude Production (Kbbld)

     224.8        240.9        236.9        5.4     -1.7     224.1        238.8        6.5
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Conventional

     144.7        143.6        142.0        -1.9     -1.2     147.2        143.0        -2.9

Shale

     77.0        94.6        92.2        19.8     -2.5     73.8        93.1        26.2

Tight

     3.1        2.7        2.7        -12.4     -0.4     3.1        2.7        -13.2
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

NGL Production (Kbbld)

     38.0        42.7        46.6        22.7     9.1     41.3        44.1        6.8
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Conventional

     14.7        12.6        12.2        -16.8     -2.7     15.7        12.4        -21.1

Shale

     22.3        28.8        33.1        48.7     14.7     24.3        30.4        25.3

Tight

     1.1        1.3        1.3        22.6     -2.6     1.3        1.3        -1.4
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Gas Production (Mm3d)

     38.4        36.5        37.5        -2.3     2.9     38.0        36.8        -3.2
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Conventional

     15.0        13.8        13.4        -10.6     -2.9     15.2        13.8        -9.2

Shale

     17.1        17.0        18.2        6.5     7.1     16.0        17.3        8.6

Tight

     6.3        5.7        5.9        -6.2     4.4     6.9        5.7        -17.2
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Total Production (Kboed)

     504.4        513.1        519.7        3.0     1.3     504.6        514.5        2.0
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Conventional

     253.6        242.9        238.4        -6.0     -1.8     258.7        242.3        -6.3

Shale

     207.0        230.5        240.0        16.0     4.1     198.4        232.5        17.2

Tight

     43.8        39.7        41.2        -5.9     3.8     47.5        39.7        -16.5
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Average realization prices

                     

Crude Oil (USD/bbl)

     67.3        63.4        60.7        -9.9     -4.3     63.9        63.6        -0.4

Natural Gas (USD/MMBTU)

     4.4        3.9        4.3        -2.8     9.3     3.8        3.8        -0.3

Total hydrocarbon production totaled 519.7 Kboe/d during 3Q23, increasing 1.3% sequentially and 3.0% y/y. Natural gas production recorded a sequential expansion of 2.9%, while crude oil production decreased by 1.7% q/q, but achieving a strong inter-annual increase of 5.4%. On the NGLs side, production increased 9.1% sequentially primarily driven by the new facilities connected between Tratayen and our subsidiary Mega that allowed an expansion of NGLs production from La Calera block.

Shale production continued expanding strongly during the quarter, representing 46.2% of our total consolidated production in 3Q23, where shale oil and shale gas increased, on a year over year basis, 19.8% and 6.5%, respectively, highlighting the new sequential increase of 4.1% in our total shale production. However, shale oil production recorded a slight sequential decline of 2.5% mainly due to interference effects of new well construction activity over existing production in our shale core-hub fields together with some delays on our program for new tie-ins.

Average daily crude oil production decreased by 1.7% sequentially, driven by the 2.5% decrease in shale production aforementioned, while conventional production dropped just 1.2%, as the natural decline of our mature fields were mostly compensated by our tertiary production, which increased 9% sequentially and 30% versus the same period of 2022. The positive evolution in tertiary production came primarily from Manantiales Behr block, that represents almost 70% of our EOR production, where we are currently operating nine Polymer Injection Units, together with the solid results deployed at Chachauen in Mendoza and El Trebol in Chubut.

 

 

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On the natural gas side, average daily production increased by 2.9% q/q, driven by a 7.1% higher shale gas production, which was partially offset by a 2.9% contraction in our conventional production. In a year over year comparison, natural gas production decreased by 2.3%, particularly affected by lower demand.

In 3Q23, total segment revenues reached US$1,920 million, increasing by 1.3% compared to 2Q23 and decreasing 8.0% y/y.

 

   

Crude oil revenues declined by 4.7% q/q, mainly led by lower prices of 4.3% and slight decrease of 0.4% in volumes sold. The price decline was mostly driven by a contraction of Medanito crude oil price, which was set at 56 dollars per barrel as of mid-August, based on an agreement between local refineries, upstream companies and the Secretary of Energy, partially offset by growing crude oil exports.

 

   

Natural gas revenues went up by 16.3% q/q, mainly due to the seasonal price increase previously mentioned of 9.3% and higher volumes sold of 6.4%.

 

Upstream Financials

Unaudited Figures, in US$ million

   3Q22     2Q23     3Q23     Y/Y Δ     Q/Q Δ     9M22     9M23     Y/Y Δ  

Crude oil

     1,442       1,363       1,299       -9.9     -4.7     3,852       4,068       5.6

Natural gas

     566       473       550       -2.9     16.3     1,438       1,380       -4.0

Other

     79       60       72       -9.4     19.6     205       197       -4.2
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Revenues

     2,087       1,896       1,920       -8.0     1.3     5,495       5,644       2.7
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Depreciation & amortization

     (545     (668     (693     27.2     3.7     (1,529     (1,963     28.4

Lifting cost

     (631     (746     (746     18.3     0.0     (1,774     (2,163     21.9

Royalties

     (259     (244     (245     -5.3     0.7     (710     (722     1.7

Exploration expenses

     (18     (8     (16     -11.1     100.0     (42     (42     0.0

Other

     (217     (155     (150     -31.0     -3.6     (441     (466     5.6
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income before impairment of assets

     417       75       70       -83.3     -7.0     999       289       -71.1
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Impairment of assets

     (98     —         (506     414.6     N/A       (98     (506     414.6
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income / (loss)

     319       75       (436     N/A       N/A       901       (217     N/A  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Depreciation & amortization

     545       668       693       27.2     3.7     1,529       1,963       28.4

Unproductive exploratory drillings

     7       —         9       28.6     N/A       14       15       7.1

Impairment of assets

     98       —         506       414.6     N/A       98       506       414.6
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA

     969       743       772       -20.3     3.9     2,542       2,267       -10.8
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Leasing

     (48     (39     (37     -23.1     -5.3     (124     (118     -5.1
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

     920       704       735       -20.2     4.4     2,418       2149       -11.1
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

CAPEX

     833       1,017       1,150       38.1     13.1     2,144       3,182       48.4
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Unit Cash Costs

Unaudited Figures, in US$/boe

   3Q22     2Q23     3Q23     Y/Y Δ     Q/Q Δ     9M22     9M23     Y/Y Δ  

Lifting Cost

     13.6       16.0       15.6       14.8     -2.3     12.9       15.4       19.6

Royalties and other taxes

     7.1       6.5       6.5       -8.0     -0.3     6.5       6.5       0.4

Other Costs

     2.8       2.9       2.6       -8.7     -12.4     2.5       2.7       8.8
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Cash Costs (US$/boe)

     23.5       25.5       24.7       5.1     -3.0     21.9       24.7       12.6
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

In terms of our cost structure per unit basis, total cash costs decreased by 3.0% sequentially and increased 5.1% y/y due to the following:

 

   

Lifting cost decreased by 2.3% q/q. When breaking down our lifting costs by type of operation in 3Q23, our unconventional activities averaged 5.8 US$/BOE, jumping 4.7% q/q due to higher activity and maintenance costs that overrun the expanded production during the quarter, while our conventional operations averaged 25.0 US$/BOE, representing a sequential decrease of 2.6% mainly driven by the evolution of the macroeconomic variables particularly affected by a discrete devaluation of the local currency that took place in mid-August. Lifting cost gross within our shale core hub averaged 4.2 US$/BOE in 3Q23, remaining almost flat versus the previous quarter.

 

 

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Royalties within the upstream segment and other taxes remained essentially flat compared to the previous quarter, where natural gas royalties jumped by 8.5% and crude oil royalties decreased by 2.5%, mainly due to the aforementioned variations in realization prices.

 

   

The sequential contraction in Other costs is driven by non-recurrent charges recorded in 2Q23.

Lastly, it is worth mentioning that during Q3, the Company accounted a non-recurring impairment charge in our natural gas assets from the Neuquina basin of 506 million dollars, pre-tax, primarily on the back of lower long-term expected prices as a result of increased competition and potential oversupply in the domestic natural gas market in coming years.

In summary, Adjusted EBITDA for the upstream segment reached US$735 million in the quarter, increasing by 4.4% q/q and decreasing 20.2% y/y.

 

 

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CAPEX:

Upstream CAPEX totaled US$1,150 million in 3Q23, increasing by 13.1% sequentially and by 38.1% y/y, where 62.9% was allocated to drilling and workover activities, 29.5% to new facilities or the expansion of existing ones, and the remaining 7.5% to exploration and other upstream activities.

During 3Q23, drilling and workover activities showed a positive trend, completing a total of 67 new wells in our operated blocks, including 38 new wells completed in our unconventional operated blocks, 34 of shale oil and 4 of shale gas, reaching a total of 117 completed horizontal shale wells during the first nine months of the year.

Regarding our shale operations, during 3Q23 we made progress in the following developments:

 

   

In terms of efficiencies within our shale operations, in Q3 we continued setting new quarterly records on drilling and fracking performance, averaging 297 meters per day in drilling and over 217 stages per set per month on fracking, highlighting that during September, we achieved the highest drilling speed for one well in Aguada del Cañar block, reaching 415 meters per day for a well of over 3,200 meters of horizontal length, which was fully drilled in 14 days.

 

   

Regarding of our shale exploratory strategy, in September, we were awarded with two new shale exploratory concessions in Palermo Aike, La Azuzena and El Campamento Este, to explore their potential in coming years.

On the conventional side, our operations maintained their focus on sustainability related activities aiming to further reduce the priority risks in our facilities. Moreover, tertiary recovery activities continued being highly relevant in Manantiales Behr, El Trébol, and Chachahuen.

 

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4.2. INDUSTRIALIZATION

 

Industrialization Operating data

Unaudited Figures

   3Q22     2Q23     3Q23     Y/Y Δ     Q/Q Δ     9M22     9M23     Y/Y Δ  

Crude processed (Kbbld)

     279.0       305.1       276.1       -1.1     -9.5     282.8       296.0       4.7

Refinery utilization (%)

     85.0     93.0     84.1     -90bps       -885bps       86     90     402bps  

Nominal capacity at 328.1 Kbbl/d since 1Q21.

Crude oil processed during the quarter stood at 276.1 Kbbl/d, which represented a decrease of 9.5% q/q and of 1.1% y/y. In a sequential basis, the contraction was driven by two programmed maintenance stoppages at the Lujan de Cuyo refinery in the topping, coker and hydrotreating units executed in July and August and the shutdown of a topping unit at La Plata refinery, which started in September, as the final stage of its revamping.

 

Industrialization Financials

Unaudited Figures, in US$ million

   3Q22     2Q23     3Q23     Y/Y Δ     Q/Q Δ     9M22     9M23     Y/Y Δ  

Revenues

     3,478       2,894       2,770       -20.4     -4.3     9,309       8,768       -5.8
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Depreciation & amortization

     (111     (126     (124     11.7     -1.6     (330     (374     13.3

Industrialization cost

     (409     (446     (451     10.2     1.0     (1,103     (1,311     18.9

Fuels imports (third parties)

     (559     (158     (214     -61.6     35.8     (1,170     (715     -38.9

Crude oil purchases (intersegment + third parties)

     (1,819     (1,662     (1,480     -18.7     -10.9     (4,829     (4,944     2.4

Biofuel purchases (third parties)

     (301     (230     (197     -34.7     -14.3     (718     (656     -8.6

Stock variations

     240       (25     (237     N/A       838.4     372       (171     N/A  

Other

     (232     (92     (160     -31.2     73.2     (501     (347     -30.7
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income / (loss) before impairment of assets

     286       155       (93     N/A       N/A       1,031       250       -75.8
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Impairment of assets

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

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income / (loss)

     286       155       (93     N/A       N/A       1,031       250       -75.8
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Depreciation & amortization

     111       126       124       11.7     -1.6     330       374       13.3
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA

     397       281       31       -92.2     -89.0     1,361       624       -54.1
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Leasing

     (1     (20     (18     1497.7     -9.8     (5     (59     990.1
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

     396       261       13       -96.8     -95.1     1,356       565       -58.3
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Inventories price effect of oil products

     43       (22     (69     N/A       213.4     265       (139     N/A  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA excl. inventories price effect of oil products

     353       283       82       -76.9     -71.1     1,090       705       -35.4
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Capex

     202       253       301       49.4     19.4     445       756       69.9
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Stock variations include price effects by US$43 million in 3Q22, US$(22) million for 2Q23 and US$(69) million for 3Q23.

Revenues – mainly intersegment revenues with Commercialization segment—totaled US$2,770 million in 3Q23, a decrease of 4.3% compared to 2Q23, mainly driven by lower local prices of diesel, gasoline and other refined and petrochemical products, partially offset by higher volumes dispatched of diesel, gasoline and jet fuel, among others.

OPEX for this segment increased 1.0% q/q, mainly driven by higher maintenance and transportation costs, the latter aligned with higher volumes sold in the local market, partially offset by the evolution of the macroeconomic variables mentioned above.

Separately, fuels imports increased by 35.8% q/q, driven by higher prices of 17.3% and larger imported volumes of 15.7%. The sequential growth of diesel imports volumes can be explained by higher demand and the programmed stoppages at Luján de Cuyo and La Plata refineries described above. On the other hand, during the quarter, we did not import gasoline, consequently, the exceptional demand hike was supplied through significant inventory drawdown.

 

 

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Crude oil purchases (including intersegment purchases to our Upstream operations) dropped 10.9% q/q, as a result of a price contraction of 6.2% and a decline in volumes of 5.0%, driven by lower processing levels recorded in Q3.

Biofuel purchases decreased by 14.3%, where purchases of biodiesel declined 21.2%, and purchases of bioethanol dropped 7.7%. Biodiesel purchases contraction was mainly the result of the lower blend in diesel sales, the latter due to supply constrains in the local market, while bioethanol purchases decreased mainly as a result of lower prices.

 

 

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CAPEX:

In 3Q23, Industrialization CAPEX totaled US$301 million, setting a 19.4% increase compared to 2Q23 and a rise of 49.4% y/y. Out of the total, 67.6% was allocated to refining, 21.1% to midstream oil, 11.1% to logistics and the remaining 0.2% to others.

During Q3, we continued making progress with the execution of the new fuel specifications project, including the construction of a new diesel hydrotreatment unit at the Luján de Cuyo refinery and a gasoline hydrotreatment and revamping of existing gasoline units in La Plata refinery. The purpose of these works is to comply with the new fuel specifications established by Resolutions No. 576/2019 and 492/2023, which will come into force in 2025. In addition, the revamping of a topping unit at the La Plata refinery, which will allow to process greater shale oil, is nearing completion and is expected to be ready by the end of 2023. In the same line, in the Luján de Cuyo and Plaza Huincul refineries, we keep progressing on the revamping of the topping units.

In terms of midstream oil investments, we continued with a steady progress in the main projects aimed at unlocking the evacuation capacity of the Neuquina basin:

 

   

Regarding the expansion of the existing system to the Atlantic, in September, our subsidiary Oldelval added 20 Kbbl/d of evacuation capacity. In addition, OTE continued moving forward in the construction of two new storage facilities of 50 Km3 each and the revamping of the export terminal at Puerto Rosales.

 

   

Regarding the evacuation to the Pacific, the Vaca Muerta North pipeline is nearing completion and is expected to be fully operational during November. However, since the shale oil to be exported through the new Vaca Muerta North pipeline presents a lighter quality than the heavier oil currently being exported to Chile, the export growth enabled by the new pipeline is expected to be gradual, likely to start increasing as of early next year.

 

   

Finally, regarding the Vaca Muerta South project, during the third quarter we began the design competition process for the new pipeline and export terminal and obtained the environmental permits for the first tranche of 127 km that will connect Loma Campana to Allen.

Lastly, during this quarter, we continued improving safety conditions for our people and facilities, complying with the current environmental regulations in refining and logistics operations.

 

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4.3. COMMERCIALIZATION

 

Commercialization Operating data

Unaudited Figures

   3Q22      2Q23      3Q23      Y/Y Δ     Q/Q Δ     9M22      9M23      Y/Y Δ  

Sales volume to third parties

                     

Sales of refined products (Km3)

     4,896        4,873        4,936        0.8     1.3     14,243        14,599        2.5

Total domestic market (*)

     4,536        4,483        4,581        1.0     2.2     13,200        13,411        1.6

of which Gasoline

     1,419        1,431        1,500        5.7     4.8     4,193        4,445        6.0

of which Diesel

     2,288        2,227        2,272        -0.7     2.0     6,602        6,551        -0.8

Total export market

     360        390        355        -1.3     -8.9     1,042        1,189        14.0
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Sales of petrochemical products (Ktn)

     115        122        151        31.0     24.0     382        413        8.1
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Domestic market

     90        70        86        -4.5     22.8     301        240        -20.3

Export market

     25        51        65        159.2     25.7     82        174        112.5
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Sales of Natural Gas as producers (Mm3)

     3,250        2,983        3,241        -0.3     8.6     9,562        9,069        -5.2
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Domestic market

     3,128        2,883        3,183        1.8     10.4     9,147        8,716        -4.7

Export market

     122        100        58        -52.6     -42.0     415        353        -15.0
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Sales of fertilizers, grain and flours (Ktn)

     691        448        431        -37.7     -3.9     1,749        1,094        -37.5
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Domestic market

     292        345        365        24.9     5.7     609        916        50.5

Export market

     398        103        66        -83.5     -36.1     1,140        178        -84.4

Net average prices

                     

Gasoline (USD/m3) (domestic market)

     564        526        499        -11.6     -5.2     562        520        -7.5

Diesel (USD/m3) (domestic market)

     810        692        640        -21.0     -7.4     719        690        -4.0

Petrochemical & others refined products (USD/bbl)

     104        78        73        -29.1     -5.8     98        79        -20.0

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

(*) Includes volumes sold by Industrialization

Domestic gasoline sales volumes increased by 4.8% compared to 2Q23, while domestic diesel volumes increased 2.0% q/q due to higher retail and transportation sales partially compensated by lower power generation demand. In terms of market share of our fuels, Argentina’s total market grew by 2.4% q/q for gasoline and decrease by 1.0% q/q for diesel, resulting in an expansion of YPF’s market share in both gasoline and diesel.

Petrochemical volumes grew 24.0% q/q mainly due to lower demand in both local and export markets recorded in 2Q23 affected by programmed stoppages in some of our industrial customers.

Natural gas sales volumes increased 8.6% q/q driven by the higher seasonal demand, but still slightly below 2022’s demand on the back of limited availability of transportation, and volumes exports declined 42.0% q/q aligned with the lowest sales recorded in the market.

Fertilizers, grain and flours sales volumes decreased by 3.9% q/q, as a result of lower seasonal demand of grains and flours still affected by the severe drought recorded in Argentina in the first half of 2023, partially offset by higher volumes sold of fertilizers.

Net average diesel prices in the domestic market measured in dollar terms decreased by 7.4% q/q, while net average gasoline prices decreased by 5.2% q/q, mainly driven by the discrete devaluation of the local currency that took place in mid-August, which was not fully passed through in the retail segment, in contrast to wholesale diesel prices that were fully adjusted. Moreover, the average price for “Petrochemical & other refined products” declined by 5.8% q/q and 29.1% y/y, aligned with a downward trend in international prices of petrochemical and certain refined products such as lubricants, petroleum coke and jet fuel.

 

 

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Commercialization Financials

Unaudited Figures, in US$ million

   3Q22     2Q23     3Q23     Y/Y Δ     Q/Q Δ     9M22     9M23     Y/Y Δ  

Diesel (third parties)

     1,945       1,599       1,556       -20.0     -2.7     4,983       4,765       -4.4

Gasoline (third parties)

     879       828       821       -6.6     -0.8     2,575       2,536       -1.5

Natural gas (intersegment + third parties)

     596       483       560       -6.0     15.9     1,489       1,403       -5.8

Other domestic market

     1,016       776       809       -20.3     4.3     2,558       2,303       -10.0

Export market

     591       370       463       -21.7     25.2     1,713       1,273       -25.7
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Revenues

     5,027       4,056       4,209       -16.3     3.8     13,317       12,281       -7.8
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Depreciation & amortization

     (28     (12     (18     -36.4     52.7     (82     (48     -41.1

Refined & petrochemicals Products purchases (intersegment)

     (3,247     (2,681     (2,587     -20.3     -3.5     (8,743     (8,147     -6.8

Non-oil agro purchases (third parties)

     (387     (253     (194     -49.8     -23.2     (1,080     (561     -48.0

Natural gas purchases (intersegment + third parties)

     (584     (479     (558     -4.5     16.5     (1,465     (1,393     -4.9

Stock variations

     (15     42       (28     85.8     N/A       164       18       -88.9

Commercialization cost & Other

     (658     (627     (736     11.9     17.5     (1,781     (1,946     9.3
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income before impairment of assets

     108       46       88       -18.5     91.3     331       204       -38.4
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Impairment of assets

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

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     108       46       88       -18.5     91.3     331       204       -38.4
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Depreciation & amortization

     28       12       18       -36.4     52.7     82       48       -41.1
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA

     135       57       106       -21.8     84.9     413       252       -38.9
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Leasing

     (19     2       (3     -81.2     N/A       (53     (11     -79.5
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

     117       59       102       -12.3     74.1     360       241       -32.9
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Inventories price effect of oil products

     (2     (9     (6     145.8     -39.2     35       (25     N/A  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA excl. inventories price effect of oil products

     119       68       108       -9.2     58.4     325       267       -17.9
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

CAPEX

     20       28       21       3.2     -25.0     46       61       32.6
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Stock variations include price effects by US$ (27) million in 3Q22, US$(35) million for 2Q23 and US$(2) million for 3Q23.

Sales of natural gas include domestic and external markets

Revenues during 3Q23 totaled US$4,209 million, an increase of 3.8% compared to 2Q23, mainly as a result of higher seasonal natural gas sales, higher of crude oil exports to Chile and larger volumes dispatched of fuels; partially offset by lower prices of local fuels and the basket of refined products other than gasoline and diesel.

Refined & petrochemicals products purchases (intersegment) to Industrialization segment, decreased by 3.5% q/q, mainly due to lower prices partially offset by higher volumes dispatched of fuels.

Non-oil agro purchases decreased by 23.2% q/q, aligned with the contraction in volumes sales.

Finally, combining the results of the Industrialization and Commercialization segments, excluding petrochemicals and non-oil agro business, the Adjusted EBITDA of the Refining & Marketing business during the 3Q23 reached US$3.3 per barrel.

 

 

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CAPEX:

In 3Q23, Commercialization CAPEX totaled US$21 million, 25.0% below the 2Q23 and 3.2% higher than the same period of 2022.

Besides the regular investments related to maintaining commercial facilities and improving safety conditions to comply with the environmental regulations for the dispatch of oil products, in 3Q23 the construction of the agro commercial facility in Tres Arroyos was completed and will be fully operational during 4Q23. Moreover, the new flagship Echeverria gas station started operations during September.

 

 

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4.4. GAS AND POWER

 

GAS & POWER

Unaudited Figures, in US$ million

   3Q22     2Q23     3Q23     Y/Y Δ     Q/Q Δ     9M22     9M23     Y/Y Δ  

Natural gas retail (third parties)

     166       145       161       -3.1     10.8     395       371       -6.1

Midstream Gas Revenues (intersegment + third parties)

     52       48       48       -7.3     0.2     155       150       -3.7

Other

     66       71       81       22.6     14.5     152       178       17.7
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Revenues

     284       264       290       2.1     9.8     702       699       -0.4
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Depreciation & amortization

     (20     (31     (16     -22.6     -50.1     (62     (62     0.0

Natural gas retail purchases (intersegment + third parties)

     (112     (98     (123     9.7     26.1     (254     (271     7.0

Midstream Gas purchases (intersegment)

     (14     (14     (15     8.5     6.1     (45     (48     4.7

Operating cost & Other

     (103     (99     (107     4.3     8.3     (278     (294     5.8
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income before impairment of assets

     35       22       29       -17.1     N/A       63       24       -61.9
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Impairment of assets

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

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     35       22       29       -17.1     N/A       63       24       -61.9
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Depreciation & amortization

     20       31       16       -22.6     -50.1     62       62       0.0
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA

     55       53       45       -19.1     -16.2     125       86       -31.2
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Leasing

     (6     (12     (8     29.8     -35.0     (20     (19     -1.6
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

     49       42       37       -24.9     -11.0     105       67       -36.7
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

CAPEX

     27       45       39       42.3     -13.3     43       136       216.3
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Revenues during 3Q23 totaled US$290 million, increasing by 9.8% compared to 2Q23, mainly due to an increase of 10.8% of natural gas sales from our controlled subsidiary Metrogas, driven by higher natural gas volumes dispatched of 39.3%, partially offset by a contraction in average prices of 20.5%.

Other sales expanded 14.5% q/q, while midstream sales including propane, butane and gasolines, remained flat.

Natural gas retail purchases jumped 26.1% q/q, in line with the increasing sales. Moreover, Operating costs & other rose 8.3% q/q, mainly led by higher costs from our subsidiary Metrogas aligned with the larger volumes sold of natural gas described above.

As a whole, Adjusted EBITDA stood at US$37 million, decreasing by 11.0% compared to the US$42 recorded in 2Q23.

 

 

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CAPEX:

Gas & Power CAPEX totaled US$39 million in Q3, decreasing by 13.3% q/q. During the quarter, investments were mainly focused on the construction of new midstream gas facilities aiming at de-bottlenecking the potential of the Vaca Muerta formation. In that sense, as of September 2023 we achieved 89% progress in the revamping of the NGLs facility “Tex Loma La Lata”, which first stage was put in operation by September and is expected to be fully operational by the end of November, increasing the processing capacity up to 6 Mm3/d of natural gas and 600 tons/d of NGLs in the core hub blocks. In addition, we continued working in the Rincón del Mangrullo gas pipeline expansion project, which reached 87% progress and is expected to be completed by the end of the year.

 

 

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4.5. CORPORATE AND OTHER

 

Corporate & Other Financials

Unaudited Figures, in US$ million

   3Q22     2Q23     3Q23     Y/Y Δ     Q/Q Δ     9M22     9M23     Y/Y Δ  

Revenues

     296       335       360       22.0     7.5     761       1,006       32.2
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating costs and other

     (383     (425     (454     18.8     6.9     (986     (1,254     27.2
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income / (loss) before impairment of assets

     (87     (90     (94     8.0     4.4     (225     (248     10.2
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Impairment of assets

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

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating result

     (87     (90     (94     8.0     4.4     (225     (248     10.2
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Depreciation & amortization

     22       17       15       -30.2     -11.4     65       47       -28.0
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA

     (65     (73     (79     20.7     8.1     (160     (201     25.9
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Leasing

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

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

     (65     (73     (79     20.7     8.1     (160     (201     25.9
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

CAPEX

     55       31       35       -35.8     12.9     93       83       -10.8
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

Corporate and Other Adjusted EBITDA represented a loss of US$79 million in 3Q23, compared to a loss of US$73 million in 2Q23.

The negative variation is mainly explained by an increase in corporate OPEX due to higher activity in marketing and technology areas and the evolution of the macroeconomic variables.

 

 

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5. LIQUIDITY AND SOURCES OF CAPITAL

5.1. CASH FLOW SUMMARY

 

Summary Consolidated Cash Flow

Unaudited Figures, in US$ million

   3Q22     2Q23     3Q23     Y/Y Δ     Q/Q Δ     9M22     9M23     Y/Y Δ  

Cash BoP

     667       1,014       1,167       75.0     15.1     611       773       26.5

Net cash flow from operating activities

     1,582       1,309       1,399       -11.6     6.9     4,362       4,205       -3.6

Net cash flow from investing activities

     (1,006     (1,259     (1,321     31.3     4.9     (2,886     (3,769     30.6

Net cash flow from financing activities

     (335     214       158       N/A       -26.2     (1,072     389       N/A  

FX adjustments & other

     (74     (111     (107     44.6     -3.6     (181     (302     66.9
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash EoP

     834       1,167       1,296       55.4     11.1     834       1,296       55.4
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Investment in financial assets

     500       303       182       -63.6     -39.9     575       182       -68.3
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash + short-term investments EoP

     1,334       1,470       1,478       10.8     0.5     1,409       1,478       4.9
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

FCF

     243       (284     (379     N/A       33.5     943       (680     N/A  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

In 3Q23 our cash flow from operations reached US$1,399 million, increasing 6.9% sequentially, despite the sequential contraction in adjusted EBITDA in the third quarter, primarily due to a negative non-cash inventory variation recorded in 3Q23, as well as other positive working capital variations, such as the temporary deferred payment of part of the purchases of crude oil from third parties to the first days of October.

Net cash flow from investing activities was negative US$1,321 million, compared to negative US$1,259 million in 2Q23. This variation was mainly driven by the expansion in our investment plan partially offset by higher sales and maturities of financial assets. In 3Q22, net cash flow from investing activities was negative US$1,006 million, below the 3Q23, mainly driven by the expansion of our CAPEX plan in 2023.

Net cash flow from financing activities amounted to positive US$158 million in 3Q23 against a positive cash flow of US$214 million in 2Q23 as the Company continued progressing on its financial plan by securing both local and cross-border trade-related loans and by tapping the local capital markets.

As a result, the free cash flow for the period was negative by U$379 million, as the continued deployment of our ambitious capex plan together with our regular interest payments in the quarter and other expenses, was not fully compensated by the cash flow from operations.

In terms of liquidity, our cash and short-term investments stood at US$1,478 million by the end of September 2023, almost flat when compared to the previous quarter.

In terms of cash management, we have continued with an active asset management approach to minimize FX exposure, ending the quarter with a consolidated net FX exposure of only 2% of total liquidity, down from 13% as of the end of the second quarter.

 

 

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5.2. NET DEBT

 

Net debt breakdown

Unaudited Figures, in US$ million

   3Q22     2Q23     3Q23     Q/Q Δ  

Short-term debt

     857       1,483       1,546       4.2

Long-term debt

     6,133       6,299       6,607       4.9
  

 

 

   

 

 

   

 

 

   

 

 

 

Total debt

     6,989       7,782       8,153       4.8
  

 

 

   

 

 

   

 

 

   

 

 

 

Avg. Interest rate for AR$-debt

     56.2     87.5     109.2  

Avg. Interest rate for US$-debt

     7.9     7.1     6.2  

% of debt in AR$

     2.1     2.6     2.5  
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash + short term investments

     1,334       1,470       1,478       0.5
  

 

 

   

 

 

   

 

 

   

 

 

 

% of liquidity dollarized

     69     87     98  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net debt

     5,655       6,312       6,675       5.8
  

 

 

   

 

 

   

 

 

   

 

 

 

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

As of September 30, 2023, YPFs consolidated net debt totaled US$6,675 million, increasing by US$363 million q/q and US$1,020 million y/y. The higher net debt and the lower 12-month rolling Adjusted EBITDA resulted in an increase in the net leverage ratio up to 1.7x.

In terms of financing, in August a new cross-border A/B loan led by CAF was disbursed for 375 million dollars, as an early refinancing of an existing loan, increasing the outstanding facility size by 150 million dollars and extending its average life by almost 3 years. This loan, with a well-defined ESG perspective, will be entirely allocated for the revamping of refineries aimed at reducing the sulfur content in the production of fuels, aligned with the energy transition path of the Company.

Moreover, during the quarter we continued tapping the local capital markets at very attractive financing costs by issuing a 5-year dollar-linked bond for 400 million dollars at 0% rate, as well as refinancing over US$ 160 million of local and cross border trade facilities.

Regarding our maturity profile, the Company faces debt maturities for the last three months of 2023 totaling an amount of US$329 million, mainly consisting in local bonds maturities (US$137 million for the 2% Dollar-Linked Notes due December 2023), international bonds amortization (US$60 million for the Secured Notes due 2026), and the remaining in short term trade facilities.

 

 

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The following chart shows the consolidated principal debt maturity profile of the Company as of September 30th, 2023, expressed in millions of dollars:

 

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6. TABLES AND NOTES

6.1. CONSOLIDATED INCOME STATEMENT

 

Income Statement

Unaudited Figures, in US$ million

   3Q22     2Q23     3Q23     Y/Y Δ     Q/Q Δ     9M22     9M23     Y/Y Δ  

Revenues

     5,357       4,375       4,504       -15.9     2.9     14,112       13,117       -7.1
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Costs

     (3,754     (3,509     (3,689     -1.7     5.1     (9,983     (10,497     5.1
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

     1,603       866       815       -49.2     -5.9     4,129       2,620       -36.5
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Selling expenses

     (545     (482     (483     -11.4     0.2     (1,444     (1,385     -4.1

Administrative expenses

     (167     (167     (194     16.2     16.2     (459     (518     12.9

Exploration expenses

     (18     (8     (16     -11.1     100.0     (42     (42     0.0

Impairment of property, plant and equipment and intangible assets

     (98     —         (506     416.3     N/A       (98     (506     416.3

Other operating results, net

     (24     12       (3     -87.5     N/A       (46     -       N/A  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     751       221       (387     N/A       N/A       2,040       169       -91.7
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income of interests in companies and joint ventures

     141       94       44       -68.8     -53.2     388       227       -41.5

Financial Income

     642       792       1,042       62.3     31.6     1,384       2,435       75.9

Financial Cost

     (623     (842     (930     49.3     10.5     (1,542     (2,482     61.0

Other financial results

     66       190       94       42.4     -50.5     166       395       138.0

Financial results, net

     85       140       206       142.4     47.1     8       348       4250.0
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net profit before income tax

     977       455       (137     N/A       N/A       2,436       744       -69.5
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income tax

     (284     (75     -       N/A       N/A       (666     (160     -76.0
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net profit for the period

     693       380       (137     N/A       N/A       1,770       584       -67.0
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net profit for shareholders of the parent company

     692       335       (128     N/A       N/A       1,763       548       -68.9

Net profits for non-controlling interest

     1       45       (9     N/A       N/A       7       36       414.3

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

     1.76       0.86       (0.33     N/A       N/A       4.48       1.40       -68.8

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

 

Income Statement

Unaudited Figures, in AR$ million

   3Q22     2Q23     3Q23     Y/Y Δ     Q/Q Δ     9M22     9M23     Y/Y Δ  

Revenues

     742,552       1,036,763       1,473,630       98.5     42.1     1,739,973       3,330,718       91.4
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Costs

     (527,339     (848,400     (1,250,786     137.2     47.4     (1,241,107     (2,745,702     121.2
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

     215,213       188,363       222,844       3.5     18.3     498,866       585,016       17.3
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Selling expenses

     (76,245     (115,705     (160,553     110.6     38.8     (179,598     (359,008     99.9

Administrative expenses

     (24,377     (41,214     (68,062     179.2     65.1     (58,369     (140,246     140.3

Exploration expenses

     (2,593     (1,847     (5,487     111.6     197.1     (5,269     (11,032     109.4

Impairment of property, plant and equipment and intangible assets

     (14,108     —         (176,769     1153.0     N/A       (14,108     (176,769     1153.0

Other operating results, net

     (2,478     3,696       1,640       N/A       -55.6     (5,305     3,901       N/A  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     95,412       33,293       (186,387     N/A       N/A       236,217       (98,138     N/A  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income of interests in companies and joint ventures

     19,038       21,850       13,182       -30.8     -39.7     46,732       51,978       11.2

Financial Income

     87,286       186,110       324,542       271.8     74.4     173,132       626,839       262.1

Financial Cost

     (86,026     (196,265     (291,758     239.2     48.7     (190,023     (623,765     228.3

Other financial results

     15,478       58,771       68,466       342.3     16.5     28,827       151,244       424.7

Financial results, net

     16,738       48,616       101,250       504.9     108.3     11,936       154,318       1192.9
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net profit before income tax

     131,188       103,759       (71,955     N/A       N/A       294,885       108,158       -63.3
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income tax

     (39,006     (18,561     7,557       N/A       N/A       (82,223     (28,758     -65.0
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net profit for the period

     92,182       85,198       (64,398     N/A       N/A       212,662       79,400       -62.7
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net profit for shareholders of the parent company

     91,896       73,727       (65,579     N/A       N/A       211,586       66,714       -68.5

Net profits for non-controlling interest

     286       11,471       1,181       312.9     -89.7     1,076       12,686       1079.0

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

     233.72       188.32       (167.55     N/A       N/A       538.25       170.37       -68.3

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

 

 

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6.2. CONSOLIDATED BALANCE SHEET

 

Consolidated Balance Sheet    In US$ million      In AR$ million  

Unaudited Figures

   31-Dec-22      30-Sep-23      31-Dec-22      30-Sep-23  

Non-current Assets

           

Intangible assets

     384        371        68,052        129,777  

Properties, plant and equipment

     17,510        18,672        3,100,306        6,525,018  

Assets for leasing

     541        504        95,748        176,186  

Investments in companies and joint ventures

     1,905        1,839        337,175        642,511  

Deferred tax assets, net

     17        17        3,010        5,941  

Other receivables

     205        203        36,468        70,905  

Trade receivables

     6        3        1,027        1,136  

Investment in financial assets

     201        11        35,664        3,755  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total Non-current Assets

     20,769        21,620        3,677,450        7,555,229  
  

 

 

    

 

 

    

 

 

    

 

 

 

Current Assets

           

Assets held for disposal

     0        0        0        0  

Inventories

     1,738        1,764        307,766        616,537  

Contract assets

     1        8        148        2,730  

Other receivables

     808        484        143,231        169,217  

Trade receivables

     1,504        1,493        266,201        521,616  

Investment in financial assets

     319        182        56,489        63,461  

Cash and cash equivalents

     773        1,296        136,874        452,755  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total Current Assets

     5,143        5,227        910,709        1,826,316  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total Assets

     25,912        26,847        4,588,159        9,381,545  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total Shareholders´ Equity

     10,552        11,119        1,868,304        3,885,498  
  

 

 

    

 

 

    

 

 

    

 

 

 

Non-current Liabilities

           

Provisions

     2,571        2,183        455,213        762,688  

Deferred tax liabilities, net

     1,733        1,036        306,708        362,301  

Income tax payable

     26        11        4,588        3,778  

Other taxes payable

     1        0        185        162  

Salaries and social security

     1        1        215        426  

Liabilities from leasing

     272        246        48,224        85,632  

Loans

     5,948        6,607        1,053,196        2,308,899  

Other liabilities

     19        108        3,302        37,649  

Accounts payable

     6        5        1,319        1,838  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total non-current Liabilities

     10,577        10,197        1,872,950        3,563,373  
  

 

 

    

 

 

    

 

 

    

 

 

 

Current Liabilities

           

Provisions

     199        192        34,981        67,104  

Contract liabilities

     77        138        13,577        48,233  

Income tax payable

     27        27        4,711        9,400  

Other taxes payable

     173        159        30,660        55,561  

Salaries and social security

     297        252        52,622        87,898  

Liabilities from leasing

     294        290        52,061        101,512  

Loans

     1,140        1,546        201,808        540,126  

Other liabilities

     12        116        2,359        40,405  

Accounts payable

     2,564        2,811        454,126        982,435  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total Current Liabilities

     4,783        5,531        846,905        1,932,674  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total Liabilities

     15,360        15,728        2,719,855        5,496,047  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total Liabilities and Shareholders’ Equity

     25,912        26,847        4,588,159        9,381,545  
  

 

 

    

 

 

    

 

 

    

 

 

 

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

 

 

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6.3. CONSOLIDATED CASH FLOW STATEMENT

 

Cash Flow Statement

Unaudited Figures, in US$ million

   3Q22     2Q23     3Q23     Y/Y Δ     Q/Q Δ     9M22     9M23     Y/Y Δ  

Operating activities

                

Net income

     693       380       (137     N/A       N/A       1,770       584       -67.0

Income from equity interests in associates and joint ventures

     (141     (94     (44     -68.8     -53.2     (388     (227     -41.5

Depreciation of property, plant and equipment

     657       791       798       21.5     0.9     1,875       2,298       22.6

Depreciation of the right-of-use assets

     56       54       55       -1.8     1.9     156       165       5.8

Amortization of intangible assets

     11       9       11       0.0     22.2     33       30       -9.1

Losses of property, plant and equipment and intangible assets and

     112       79       108       -3.6     36.7     300       271       -9.7

Income tax charge

     284       75       —         N/A       N/A       666       160       -76.0

Net increase in provisions

     74       98       111       50.0     13.3     251       308       22.7

Impairment of property, plant and equipment and intangible assets

     98       —         506       416.3     N/A       98       506       416.3

Stock compensation plans

     —         8       3       N/A       -62.5     1       15       1400.0

Changes in Assets and Liabilities & Others

     (262     (91     (12     -95.4     -86.8     (400     95       N/A  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash flow from operating activities

     1,582       1,309       1,399       -11.6     6.9     4,362       4,205       -3.6
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Investing activities

                

Acquisitions of property, plant and equipment and intangible assets

     (1,067     (1,366     (1,500     40.6     9.8     (2,692     (4,128     53.3

Contributions and acquisitions of interests in companies and joint ventures

     —         (2     —         N/A       N/A       —         (4     N/A  

Loans with related parties, net

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

Proceeds from sales of financial assets

     172       199       224       30.2     12.6     402       551       37.1

Payments for the acquisition of financial assets

     (139     (121     (73     -47.5     -39.7     (644     (276     -57.1

Interest received from financial assets

     28       21       26       -7.1     23.8     46       74       60.9

Collection for participation in areas and sale of assets

     —         10       2       N/A       -80.0     2       14       600.0
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash flow from investing activities

     (1,006     (1,259     (1,321     31.3     4.9     (2,886     (3,769     30.6
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Financing activities

                

Payment of loans

     (58     (371     (571     884.5     53.9     (728     (1,075     47.7

Payment of interests

     (175     (144     (192     9.7     33.3     (468     (493     5.3

Proceeds from loans

     39       820       976       2402.6     19.0     386       2,268       487.6

Account overdraft, net

     (44     —         33       N/A       N/A       (1     (37     3600.0

Acquisition of own shares

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

Payment of leasing

     (90     (89     (86     -4.4     -3.4     (251     (267     6.4

Payment of interests related to income tax

     (2     (2     (2     0.0     0.0     (5     (7     40.0
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash flow from financing activities

     (335     214       158       N/A       -26.2     (1,072     389       N/A  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Effect of changes in exchange rates on cash and cash equivalents

     (74     (111     (107     44.6     -3.6     (181     (302     66.9

Translation adjustments

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

Increase (decrease) in cash and cash equivalents

     167       153       129       -22.8     -15.7     223       523       134.5

Cash and cash equivalents at the beginning of the period

     667       1,014       1,167       75.0     15.1     611       773       26.5