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 Condensed Interim Consolidated Financial Statements as of September 30, 2023 and Comparative Information (Unaudited).


Table of Contents

 

 

LOGO

YPF SOCIEDAD ANONIMA

CONDENSED INTERIM CONSOLIDATED

FINANCIAL STATEMENTS AS OF SEPTEMBER 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 SEPTEMBER 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

   44

38

  

Employee benefit plans and similar obligations

   47

39

  

Assets and liabilities in currencies other than the peso

   48

40

  

Subsequent events

   49


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 SEPTEMBER 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

   Bank of the Argentine Nation (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 unit

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.

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

Gas Austral

   Associate Gas Austral S.A.

GPA

   Associate Gasoducto del Pacífico (Argentina) 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

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

LNG

   Liquified natural gas

LPG

   Liquefied petroleum gas

MBtu

   Million British thermal units

MEGA

   Joint venture Compañía 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 Branch (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 as provided for in IFRS 10.

Sustentator

   Joint venture Sustentator S.A.

Termap

   Associate Terminales Marítimas Patagónicas S.A.

TFN

   National Fiscal Court (Tribunal Fiscal de la Nación)

Turnover tax

   Impuesto a los ingresos brutos

U.S. dollar

   United States dollar

UNG

   Unaccounted natural gas

US$

   United States dollar

US$/bbl

   U.S. dollar per barrel

UVA

   Unit of Purchasing Power

VAT

   Value added tax

WEM

   Wholesale Electricity Market

WI

   Working interest

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


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 SEPTEMBER 30, 2023 AND COMPARATIVE INFORMATION (UNAUDITED)

  

LOGO

 

LEGAL INFORMATION

Legal address

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

Fiscal year

No. 47 beginning on January 1, 2023.

Main 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 crude oil, natural gas and other minerals and refining, commercialization and distribution of crude 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 Registry 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 Registry 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 SEPTEMBER 30, 2023 AND DECEMBER 31, 2022 (UNAUDITED)

 

(Amounts expressed in millions of pesos)

  

LOGO

 

         Notes                     September 30,    
2023
              December 31,    
2022

ASSETS

            

Non-current assets

            

Intangible assets

     8          129,777          68,052  

Property, plant and equipment

     9          6,525,018          3,100,306  

Right-of-use assets

     10          176,186          95,748  

Investments in associates and joint ventures

     11          642,511          337,175  

Deferred income tax assets, net

     18          5,941          3,010  

Other receivables

     13          70,905          36,468  

Trade receivables

     14          1,136          1,027  

Investments in financial assets

     15          3,755          35,664  
       

 

 

 

    

 

 

 

Total non-current assets

          7,555,229          3,677,450  
       

 

 

 

    

 

 

 

Current assets

            

Inventories

     12          616,537          307,766  

Contract assets

     25          2,730          148  

Other receivables

     13          169,217          143,231  

Trade receivables

     14          521,616          266,201  

Investments in financial assets

     15          63,461          56,489  

Cash and cash equivalents

     16          452,755          136,874  
       

 

 

 

    

 

 

 

Total current assets

          1,826,316          910,709  
       

 

 

 

    

 

 

 

TOTAL ASSETS

          9,381,545          4,588,159  
       

 

 

 

    

 

 

 

SHAREHOLDERS’ EQUITY

            

Shareholders’ contributions

          4,820          6,306  

Retained earnings

          3,833,000          1,844,724  
       

 

 

 

    

 

 

 

Shareholders’ equity attributable to shareholders of the parent company

 

     3,837,820          1,851,030  
  

 

 

 

    

 

 

 

Non-controlling interest

          47,678          17,274  
       

 

 

 

    

 

 

 

TOTAL SHAREHOLDERS’ EQUITY

          3,885,498          1,868,304  
       

 

 

 

    

 

 

 

LIABILITIES

            

Non-current liabilities

            

Provisions

     17          762,688          455,213  

Deferred income tax liabilities, net

     18          362,301          306,708  

Income tax liability

     18          3,778          4,588  

Taxes payable

     19          162          185  

Salaries and social security

     20          426          215  

Lease liabilities

     21          85,632          48,224  

Loans

     22          2,308,899          1,053,196  

Other liabilities

     23          37,649          3,302  

Accounts payable

     24          1,838          1,319  
       

 

 

 

    

 

 

 

Total non-current liabilities

          3,563,373          1,872,950  
       

 

 

 

    

 

 

 

Current liabilities

            

Provisions

     17          67,104          34,981  

Contract liabilities

     25          48,233          13,577  

Income tax liability

     18          9,400          4,711  

Taxes payable

     19          55,561          30,660  

Salaries and social security

     20          87,898          52,622  

Lease liabilities

     21          101,512          52,061  

Loans

     22          540,126          201,808  

Other liabilities

     23          40,405          2,359  

Accounts payable

     24          982,435          454,126  
       

 

 

 

    

 

 

 

Total current liabilities

          1,932,674          846,905  
       

 

 

 

    

 

 

 

TOTAL LIABILITIES

          5,496,047          2,719,855  
       

 

 

 

    

 

 

 

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

          9,381,545          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 NINE AND THREE-MONTH PERIODS ENDED SEPTEMBER 30, 2023 AND 2022 (UNAUDITED)

 

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

  

LOGO

 

                For the nine-month periods    
ended September 30,
       For the three-month periods    
ended September 30,
         Notes          2023    2022    2023    2022

Net income

              

Revenues

     25        3,330,718        1,739,973        1,473,630        742,552  

Costs

     26        (2,745,702)        (1,241,107)        (1,250,786)        (527,339)  
     

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

Gross profit

                    585,016                    498,866                    222,844                    215,213  
     

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

Selling expenses

     27        (359,008)        (179,598)        (160,553)        (76,245)  

Administrative expenses

     27        (140,246)        (58,369)        (68,062)        (24,377)  

Exploration expenses

     27        (11,032)        (5,269)        (5,487)        (2,593)  

Impairment of property, plant and equipment

     9        (176,769)        (14,108)        (176,769)        (14,108)  

Other net operating results

     28        3,901        (5,305)        1,640        (2,478)  
     

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

Operating profit / (loss)

        (98,138)        236,217        (186,387)        95,412  
     

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

Income from equity interests in associates and joint ventures

     11        51,978        46,732        13,182        19,038  

Financial income

     29        626,839        173,132        324,542        87,286  

Financial costs

     29        (623,765)        (190,023)        (291,758)        (86,026)  

Other financial results

     29        151,244        28,827        68,466        15,478  
     

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

Net financial results

     29        154,318        11,936        101,250        16,738  
     

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

              
     

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

Net profit / (loss) before income tax

        108,158        294,885        (71,955)        131,188  
     

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

Income tax

     18        (28,758)        (82,223)        7,557        (39,006)  
     

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

Net profit / (loss) for the period

        79,400        212,662        (64,398)        92,182  
     

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

Other comprehensive income

              

Items that may be reclassified subsequently to profit or loss:

              

Translation effect from subsidiaries, associates and joint ventures

        (98,006)        (21,395)        (49,826)        (10,680)  

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

        112,110        36,770        52,207        17,568  

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

              

Translation differences from YPF

        1,925,176        414,370        1,054,844        215,184  
     

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

Other comprehensive income for the period

        1,939,280        429,745        1,057,225        222,072  
     

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

              
     

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

Total comprehensive income for the period

        2,018,680        642,407        992,827        314,254  
     

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

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

              

Shareholders of the parent company

        66,714        211,586        (65,579)        91,896  

Non-controlling interest

        12,686        1,076        1,181        286  

Other comprehensive income for the period attributable to:

              

Shareholders of the parent company

        1,921,562        424,240        1,048,339        219,559  

Non-controlling interest

        17,718        5,505        8,886        2,513  

Total comprehensive income for the period attributable to:

              

Shareholders of the parent company

        1,988,276        635,826        982,760        311,455  

Non-controlling interest

        30,404        6,581        10,067        2,799  

Earnings per share attributable to shareholders of the parent company:

              

Basic and diluted

     32        170.37        538.25        (167.55)        233.72  

 

(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 NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2023 AND 2022 (UNAUDITED)
(Amounts expressed in millions of pesos)

 

    For the nine-month period ended September 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
premiums
  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)

    -       -       -       -       392         -         -       -       392  

Repurchase of treasury shares

    -       -       -       -       -         -         -       -       -  

Settlement of share-based benefit plans

    4       5       (4     (5     (543       (1,062       (273     -       (1,878

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

    3,919       6,077       14       24       138         (5,561       (431     640       4,820  
 

 

 

 

 

 

 

 

 

 

 

   

 

 

   

 

 

 

   

 

 

 

   

 

 

 

 

 

 

 

 

 

 

 

    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)

    -       -       -       -       -         -         392       -       392  

Repurchase of treasury shares

    -       -       -       -       -         -         -       -       -  

Settlement of share-based benefit plans

    -       -       -       -       -         -         (1,878     -       (1,878

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

                     

- Constitution of reserves

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

Other comprehensive income

    135,602       38,976       918,212       6,016       686,299         136,457         1,921,562       17,718       1,939,280  

Net profit for the period

    -       -       -       -       -         66,714         66,714       12,686       79,400  
 

 

 

 

 

 

 

 

 

 

 

   

 

 

   

 

 

 

   

 

 

 

   

 

 

 

 

 

 

 

 

 

 

 

Balance at the end of the period

        274,877               78,976       1,861,171       12,231               1,390,534     (1)                  215,211     (4)                    3,837,820                       47,678                       3,885,498  
 

 

 

 

 

 

 

 

 

 

 

   

 

 

   

 

 

 

   

 

 

 

   

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Includes 1,569,103 corresponding to the effect of the translation of the shareholders’ contributions (see Note 36), (600,705) 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 (421,689) corresponding to the effect of the translation to YPF´s presentation currency) and 422,136 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 238,070 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 24,462 and 12,040 restricted to the distribution of unappropiated retained earnings and losses as of September 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   LOGO
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
FOR THE NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2023 AND 2022 (UNAUDITED) (cont.)
(Amounts expressed in millions of pesos)

 

    For the nine-month period ended September 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
premiums
  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)

    -       -       -       -       117         -       -       -       117  

Repurchase of treasury shares

    (5     (7     5       7       -         (847     -       -       (847

Settlement of share-based benefit plans

    3       7       (3     (7     (355       239       (97     -       (213

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

    3,929       6,095       4       6       134         (1,101     (146     640       9,561  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    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)

    -       -       -       -       -         -       117       -       117  

Repurchase of treasury shares

    -       -       -       -       -         -       (847     -       (847

Settlement of share-based benefit plans

    -       -       -       -       -         -       (213     -       (213

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

                   

- Absorption of accumulated losses

    -       -       -       -       -         -       -       -       -  

Other comprehensive income

    35,082       -       -       -       188,355         200,803       424,240       5,505       429,745  

Net profit for the period

    -       -       -       -       -         211,586       211,586       1,076       212,662  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at the end of the period

    115,803       -       -       -       585,355       (1)        764,056       1,474,775       14,807       1,489,582  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Includes 657,198 corresponding to the effect of the translation of the shareholders’ contributions (see Note 36), (202,133) 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 (134,504) corresponding to the effect of the translation to YPF´s presentation currency) and 130,290 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 56,123 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 NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2023 AND 2022 (UNAUDITED)
(Amounts expressed in millions of pesos)

 

       For the nine-month periods
  ended September 30,
                 2023                               2022            

Cash flows from operating activities

      

Net profit

     79,400         212,662  

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

      

Income from equity interests in associates and joint ventures

     (51,978)         (46,732)  

Depreciation of property, plant and equipment

     573,731         226,938  

Amortization of intangible assets

     8,439         4,295  

Depreciation of right-of-use assets

     40,687         18,910  

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

     66,701         35,915  

Charge on income tax

     28,758         82,223  

Net increase in provisions

     76,787         31,248  

Impairment of property, plant and equipment

     176,769         14,108  

Effect of changes in exchange rates, interest and others

     (71,488)         (5,019)  

Share-based benefit plans

     3,803         574  

Changes in assets and liabilities:

      

Trade receivables

     (67,263)         (63,891)  

Other receivables

     17,230         (8,600)  

Inventories

     3,653         (61,767)  

Accounts payable

     192,292         49,781  

Taxes payables

     834         15,725  

Salaries and social security

     13,333         2,804  

Other liabilities

     13,934         (2,841)  

Decrease in provisions due to payment/use

     (118,900)         (13,367)  

Contract assets

     (3,956)         1,060  

Contract liabilities

     20,706         23,934  

Dividends received

     58,450         7,796  

Proceeds from collection of profit loss insurance

     62         116  

Income tax payments

     (3,288)         (972)  
  

 

 

 

   

 

 

 

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

             1,058,696                      524,900  
  

 

 

 

   

 

 

 

Investing activities: (3)

      

Acquisition of property, plant and equipment and intangible assets

     (1,017,251)         (322,612)  

Contributions and acquisitions of interests in associates and joint ventures

     (1,174)         (40)  

Proceeds from sales of financial assets

     137,419         49,261  

Payments from purchase of financial assets

     (66,621)         (77,340)  

Interests received from financial assets

     18,548         6,042  

Proceeds from sales of WI of areas and assets

     3,392         723  
  

 

 

 

   

 

 

 

Net cash flows used in investing activities

     (925,687)         (343,966)  
  

 

 

 

   

 

 

 

Financing activities: (3)

      

Payments of loans

     (280,920)         (85,115)  

Payments of interests

     (124,069)         (58,140)  

Proceeds from loans

     585,687         45,068  

Account overdraft, net

     (2,898)         (794)  

Repurchase of treasury shares

     -         (847)  

Payments of leases

     (65,441)         (31,130)  

Payments of interests in relation to income tax

     (1,658)         (665)  
  

 

 

 

   

 

 

 

Net cash flows from / (used in) financing activities

     110,701         (131,623)  
  

 

 

 

   

 

 

 

      
  

 

 

 

   

 

 

 

Effect of changes in exchange rates on cash and cash equivalents

     72,171         10,804  
  

 

 

 

   

 

 

 

      
  

 

 

 

   

 

 

 

Increase in cash and cash equivalents

     315,881         60,115  
  

 

 

 

   

 

 

 

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

     452,755         122,793  
  

 

 

 

   

 

 

 

Increase in cash and cash equivalents

     315,881         60,115  
  

 

 

 

   

 

 

 

 

(1)

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

(2)

Includes 36,141 and 18,740 for the nine-month periods ended September 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 nine-month periods    
ended September 30,
                     2023                                        2022                 

Unpaid acquisitions of property, plant and equipment

     190,543            59,949  

Additions of right-of-use assets

     49,100         22,686  

Capitalization of depreciation of right-of-use assets

     12,372         5,174  

Capitalization of financial accretion for lease liabilities

     2,310         1,398  

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 SEPTEMBER 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 September 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 SEPTEMBER 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 September 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 nine-month period ended September 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 November 8, 2023.

These condensed interim consolidated financial statements corresponding to the nine-month period ended September 30, 2023 are unaudited. The Company believes they include 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 nine-month period ended September 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 U.S. 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 SEPTEMBER 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 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 items of “Legal reserves”, “Reserve for future dividends”, “Reserve for investments”, “Reserve for purchase of treasury shares” and “Unappropriated retained earnings and losses”, in the 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 statement of changes in shareholders’ equity, translation differences accumulated in “Other comprehensive income” have been appropriated to the aforementioned equity items as of September 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 are translated into U.S. dollars by the following procedures: All amounts (i.e., assets, liabilities, stockholders’ equity items, expenditures and revenues) are translated at the exchange rate effective at the closing date of the financial statements, except for comparative amounts, which are presented as current amounts in the financial statements of the previous fiscal year (i.e., these amounts are not adjusted to reflect subsequent variations in the general level of prices or exchange rates). Thus, the effect of the restatement of comparative amounts is recognized in “Other comprehensive income” in the consolidated statement of comprehensive income.

These criteria are 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 September 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 “Income taxes” - 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 12 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.

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.


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 SEPTEMBER 30, 2023 AND COMPARATIVE INFORMATION (UNAUDITED)

   LOGO

 

2.

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

 

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

On August 15, 2023, CNV General Resolution No. 972/2023 was published in the BO, which provides that the earlier application of the IFRS and/or their amendments will not be allowed, unless specifically allowed by the CNV.

•    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.

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.

•    Amendments to IAS 21 “Effects of changes in foreign exchange rates” - Lack of exchangeability

In August 2023, the IASB issued amendments to IAS 21 related to the methodology to be applied where there is a lack of exchangeability between two currencies, which are applicable for reporting periods beginning on or after January 1, 2025.

These amendments eliminate the applicable methodology described in IAS 21 where there was a temporary lack of exchangeability between currencies, and introduce the definition of exchangeability between currencies and an analysis approach that requires each entity to identify whether a currency is exchangeable into another currency for each specific purpose for which such currency would be obtained following a series of parameters, such as an assessment of whether the currency is obtained within an ordinary administrative period, the ability to obtain said currency, among others. Once the absence of exchangeability between currencies has been identified, the exchange rate should be estimated to represent that which would be obtained in an orderly transaction between market participants and which reflects economic conditions. These amendments do not specify a methodology for estimating the exchange rate to be used, which must be developed by each entity.

Additionally, these amendments incorporate disclosure requirements such as a description of the restrictions giving rise to the absence of exchangeability, a qualitative and quantitative description of the transactions involved, the types of exchange rates used and their estimation method, a description of the risks to which the entity is exposed due to the absence of exchangeability, among others.

As of the date of issuance of these condensed interim consolidated financial statements, the Group is evaluating the effects of implementing these amendments.

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 closing date of these condensed interim consolidated 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 SEPTEMBER 30, 2023 AND COMPARATIVE INFORMATION (UNAUDITED)

   LOGO

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

 

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 nine-month period ended September 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. 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 nine and three-month periods ended September 30, 2022 has been restated. “Revenues” and “Selling expenses” increased by 54,033 and 22,792, respectively. This change had no effect on the Group’s statement of financial position, statement of changes in shareholders’ equity, statement 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 prices, with higher sales of natural gas during the winter at a higher price.

4.    ACQUISITIONS AND DISPOSITIONS

During the nine-month period ended September 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 exchange rate 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 nine-month period ended September 30, 2023, there were no significant changes in the administration or policies of risk management implemented by the Group as described in Note 4 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 SEPTEMBER 30, 2023 AND COMPARATIVE INFORMATION (UNAUDITED)

   LOGO

5.  FINANCIAL RISK MANAGEMENT (cont.)

 

•    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 and Notes 17, 33 and 34.

The Group monitors compliance with covenants on a quaterly basis. As of September 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 September 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 manner 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 U.S. 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 September 30, 2022, has been restated.

The business segment structure is organized as follows:

•    Upstream

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

Its revenues are largely derived from: (i) the sale of the crude 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 and Commercialization segments.

This segment 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 September 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 SEPTEMBER 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 our subsidiary Metrogas; and (iv) the storage of the natural gas produced. Also, through our 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 our 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 of natural gas from the Commercialization segment for the distribution of natural gas through our 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 September 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. In addition, the comparative information for the fiscal year ended December 31, 2022 and the period ended September 30, 2022, has been restated.

•    Commercialization

The Commercialization segment develops activities related to: (i) customer portfolio management; (ii) commercialization of crude oil and 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 crude oil, refined and petrochemical products, natural gas as producers, specialties for the agribusiness industry and grains and their by-products. These operations are performed through the businesses of B2C (Retail), B2B (Industry, Agri, Lubricants and Specialties and Commercial 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, petrochemical products from the Industrialization segment, propane and butane from the Gas and Power segment, and crude 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 SEPTEMBER 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 31, 2022 and the period ended September 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 or 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 SEPTEMBER 30, 2023 AND COMPARATIVE INFORMATION (UNAUDITED)

   LOGO

6. BUSINESS SEGMENT INFORMATION (cont.)

 

    In millions of U.S. dollars   In millions of
pesos
        Upstream             Gas and  
Power
  Industrialization   Commercialization   Central
Administration
and Others
  Consolidation
adjustments (1)
      Total           Total    

For the nine-month period ended September 30, 2023

                 

Revenues

    137         561       184       12,017       218       -       13,117       3,330,718  

Revenues from intersegment sales

    5,507         138       8,584       264       788       (15,281)       -       -  
 

 

 

 

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

    5,644         699       8,768       12,281       1,006       (15,281)       13,117       3,330,718  
 

 

 

 

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating profit / (loss)

    (217)     (3)      24       250       204       (248)       156       169       (98,138)  

Income from equity interests in associates and joint ventures

    -         206       20       1       -       -       227       51,978  

Net financial results

                  348       154,318  

Net profit before income tax

                  744       108,158  

Income tax

                  (160)       (28,758)  

Net profit for the period

                  584       79,400  

Acquisitions of property, plant and equipment

    3,182         136       756       61       83       -       4,218       1,127,262  

Acquisitions of right-of-use assets

    142         18       4       15       -       -       179       49,100  

Other income statement items

                 

Depreciation of property, plant and equipment (2)

    1,865         40       307       39       47       -       2,298       573,731  

Amortization of intangible assets

    -         8       22       -       -       -       30       8,439  

Depreciation of right-of-use assets

    98         14       45       9       -       (1)       165       40,687  

Impairment of property, plant and equipment

    506         -       -       -       -       -       506       176,769  
Balance as of September 30, 2023                  

Assets

    12,275         2,882       7,081       2,612       2,019       (22)       26,847       9,381,545  


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 SEPTEMBER 30, 2023 AND COMPARATIVE INFORMATION (UNAUDITED)

   LOGO

6. BUSINESS SEGMENT INFORMATION (cont.)

 

    In millions of U.S. dollars   In millions
of pesos
      Upstream           Gas and  
Power
    Industrialization       Commercialization     Central
  Administration  
and Others
    Consolidation  
adjustments (1)
      Total       Total

For the nine-month period ended September 30, 2022

                 

Revenues

    135         546       128       13,098       205       -       14,112       1,739,973  

Revenues from intersegment sales

    5,360         156       9,181       219       561       (15,477)       -       -  
 

 

 

 

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

    5,495         702       9,309       13,317       766       (15,477)       14,112       1,739,973  
 

 

 

 

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating profit / (loss)

    901     (3)      63       1,031       331       (225)       (61)       2,040       236,217  

Income from equity interests in associates and joint ventures

    -         373       13       2       -       -       388       46,732  

Net financial results

                  8       11,936  

Net profit before income tax

                  2,436       294,885  

Income tax

                  (666)       (82,223)  

Net profit for the period

                  1,770       212,662  

Acquisitions of property, plant and equipment

    2,144         43       445       46       93       -       2,771       351,316  

Acquisitions of right-of-use assets

    136         -       -       42       -       -       178       22,686  

Other income statement items

                 

Depreciation of property, plant and equipment (2)

    1,429         37       305       41       63       -       1,875       226,938  

Amortization of intangible assets

    -         10       21       -       2       -       33       4,295  

Depreciation of right-of-use assets

    100         15       4       41       -       (4)       156       18,910  

Impairment of property, plant and equipment

    98         -       -       -       -       -       98       14,108  
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 eliminations among the business segments of the Group.

(2)

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

(3)

Includes US$ (15) million and US$ (14) million of unproductive exploratory drillings as of September 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 SEPTEMBER 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 September 30, 2023 and December 31, 2022, and their allocation to their fair value levels:

 

    As of September 30, 2023

Financial Assets

        Level 1                Level 2                Level 3                Total      

Investments in financial assets: (1)

          

- Public securities

    27,130            -            -        27,130  
 

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

    27,130            -            -        27,130  
 

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

Cash and cash equivalents:

          

- Mutual funds

    84,243            -            -        84,243  
 

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

    84,243            -            -        84,243  
 

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

    111,373            -            -        111,373  
 

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

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

During the nine-month period ended September 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 remaining financial loans, amounted to 2,567,151 and 1,029,019 as of September 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

 

           September 30, 2023            December 31, 2022  

Net book value of intangible assets

     143,659        75,086  

Provision for impairment of intangible assets

     (13,882)        (7,034)  
  

 

 

 

  

 

 

 

     129,777        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 SEPTEMBER 30, 2023 AND COMPARATIVE INFORMATION (UNAUDITED)

   LOGO

8.  INTANGIBLE ASSETS (cont.)

 

The evolution of the Group’s intangible assets for the nine-month period ended September 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

     4,045        -        705        4,750  

Translation effect

     161,982        18,967        64,768        245,717  

Adjustment for inflation (1)

     -        -        14,178        14,178  

Decreases, reclassifications and other movements

     -        (96)        7        (89)  

Accumulated amortization

           

Increases

     5,318        -        3,121        8,439  

Translation effect

     118,500        -        62,307        180,807  

Adjustment for inflation (1)

     -        -        6,737        6,737  

Decreases, reclassifications and other movements

     -        -        -        -  

Cost

     331,206        38,428        159,844        529,478  

Accumulated amortization

     243,314        -        142,505        385,819  
  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

Balance as of September 30, 2023

     87,892        38,428        17,339        143,659  
  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

 

(1)

Corresponds to adjustment for inflation of opening balances of intangible assets of 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

 

          September 30, 2023         December 31, 2022

Net book value of property, plant and equipment

    6,905,838       3,233,211  

Provision for obsolescence of materials and equipment

    (51,878)       (26,671)  

Provision for impairment of property, plant and equipment

    (328,942)       (106,234)  
 

 

 

 

 

 

 

 

    6,525,018       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 SEPTEMBER 30, 2023 AND COMPARATIVE INFORMATION (UNAUDITED)

 

9.  PROPERTY, PLANT AND EQUIPMENT (cont.)

   LOGO

 

Changes in Group’s property, plant and equipment for the nine-month periods ended September 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

    473       692       17,796       3,418       252,128       837,173       11,580       916       2       -       3,084       1,127,262  

Translation effect

    201,872       8,840,736       1,514,893       81,182       207,566       721,100       8,729       139,414       236,644       -       111,952       12,064,088  

Adjustment for inflation (1)

    41,021       -       -       12,682       4,487       10,685       -       6,896       -       211,535       50,847       338,153  

Decreases, reclassifications and other movements

    4,703       361,700       20,805       4,480       (181,019)       (318,340)       (5,556)       8,565       7,055       6,295       (623)       (91,935)  

Accumulated depreciation

                       

Increases

    5,725       504,805       66,569       6,359       -       -       -       6,620       11,805       5,006       7,112       614,001  

Translation effect

    101,213       7,487,028       975,398       55,530       -       -       -       128,188       163,818       -       86,563       8,997,738  

Adjustment for inflation (1)

    22,084       -       -       8,327       -       -       -       6,157       -       106,480       34,603       177,651  

Decreases, reclassifications and other movements

    (219)       (21,486)       -       (1,213)       -       -       -       (1)       (1,216)       (17)       (297)       (24,449)  

Cost

    495,362       18,071,485       3,089,941       195,168       494,196       1,938,049       21,235       303,011       481,666       422,903       330,203       25,843,219  

Accumulated depreciation

    252,594       15,459,057       2,014,753       132,643       -       -       -       275,964       338,336       214,696       249,338       18,937,381  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance as of September 30, 2023

    242,768       2,612,428       1,075,188       62,525       494,196       1,938,049       21,235       27,047       143,330       208,207       80,865       6,905,838  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Corresponds to adjustment 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 SEPTEMBER 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 nine-month periods ended September 30, 2023 and 2022, the rate of capitalization was 8.26% and 8.30%, respectively, and the amount capitalized amounted to 3,286 and 1,041, respectively.

Set forth below is the evolution of the provision for obsolescence of materials and equipment for the nine-month period ended September 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

     452  

Applications due to utilization

     (874)  

Translation differences

     25,329  

Adjustment for inflation (1)

     300  
  

 

 

 

Balance as of September 30, 2023

     51,878  
  

 

 

 

 

(1)

Corresponds to adjustment for inflation of opening balances of the provision for obsolescence of materials and equipment of 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 nine-month period ended September 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

     176,769  

Depreciation (2)

     (40,270)  

Translation differences

     84,648  

Adjustment for inflation (3)

     1,561  
  

 

 

 

Balance as of September 30, 2023

     328,942  
  

 

 

 

 

(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 of subsidiaries with the peso as functional currency which was charged to “Other comprehensive income” in the statement of comprehensive income.

The Group permanently monitors the outlook of the businesses where it operates. In general, it analyzes macroeconomic variables such as price indexes and currency devaluation, among others, and in particular, for the natural gas market, the demand volume to be covered and natural gas sales prices.

As of September 30, 2023, based on the evolution of the variables and the methodology mentioned in Note 2.c), the Group recognized an impairment of property, plant and equipment charge for the CGU Gas - Neuquina Basin of 176,769 (114,900 net of the income tax), generated by a combination of variables, including mainly, a higher competition in the natural gas market which may lead to a drop in natural gas sales prices in the medium and long term and a consequent decline in our production. The post-tax discount rate used as of September 30, 2023 was 14.89%, being the post-tax recoverable value at such date of the CGU Gas - Neuquina Basin of 876,128.


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 SEPTEMBER 30, 2023 AND COMPARATIVE INFORMATION (UNAUDITED)

   LOGO

 

10. RIGHT-OF-USE ASSETS

The evolution of the Group’s right-of-use assets for the nine-month period ended September 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

     3,392          14,708          24,017          -          6,983          49,100  

Translation effect

     6,629          93,113          53,534          13,125          63,938          230,339  

Adjustment for inflation (1)

     152          -          -          4,155          -          4,307  

Decreases, reclassifications and other movements

     (327)          -          -          -          -          (327)  

Accumulated depreciation

                           

Increases

     1,146          21,901          7,475          2,185          20,352          53,059  

Translation effect

     3,509          60,708          39,200          5,977          38,087          147,481  

Adjustment for inflation (1)

     148          -          -          2,412          -          2,560  

Decreases, reclassifications and other movements

     (119)          -          -          -          -          (119)  

Cost

     15,667          195,339          127,741          34,862          136,591          510,200  

Accumulated depreciation

     8,002          135,880          83,726          18,380          88,026          334,014  
  

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

Balance as of September 30, 2023

     7,665          59,459          44,015          16,482          48,565          176,186  
  

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

    

 

 

 

 

(1)

Corresponds to adjustment 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 September 30, 2023 and December 31, 2022:

 

     September 30, 2023   December 31, 2022

Amount of investments in associates

     66,210       30,525  

Amount of investments in joint ventures

     576,301       306,650  
  

 

 

 

 

 

 

 

     642,511       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 SEPTEMBER 30, 2023 AND COMPARATIVE INFORMATION (UNAUDITED)

   LOGO

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

 

The main movements during the nine-month period ended September 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

     51,978  

Translation differences

     296,148  

Distributed dividends

     (58,654)  

Adjustment for inflation (1)

     14,690  

Capitalization in associates and joint ventures

     -  
  

 

 

 

Balance as of September 30, 2023

     642,511  
  

 

 

 

 

(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 nine-month periods ended September 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 nine-month periods         
ended September 30,
                 For the nine-month periods
ended September 30,
 
     2023      2022          2023      2022  

Net income

     7,837          1,462            44,141          45,270    

Other comprehensive income

     28,189          7,069            282,649          71,583    
  

 

 

    

 

 

      

 

 

    

 

 

 

Comprehensive income for the period

     36,026          8,531            326,790          116,853    
  

 

 

    

 

 

      

 

 

    

 

 

 

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 SEPTEMBER 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 September 30, 2023 and December 31, 2022, as well as the results for the nine-month periods ended September 30, 2023 and 2022, are detailed below:

 

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

Total non-current assets

    705,464,379       325,583,892  

Cash and cash equivalents

    67,076,584       16,684,788  

Other current assets

    64,992,802       31,531,592  

Total current assets

    132,069,386       48,216,380  
 

 

 

 

 

 

 

 

Total assets

    837,533,765       373,800,272  
 

 

 

 

 

 

 

 

Financial liabilities (excluding Accounts payable, Provisions and Other liabilities)

    273,247,935       127,658,505  

Other non-current liabilities

    54,371,809       17,103,150  

Total non-current liabilities

    327,619,744       144,761,655  

Financial liabilities (excluding Accounts payable, Provisions and Other liabilities)

    49,429,881       26,591,063  

Other current liabilities

    34,275,622       19,627,928  

Total current liabilities

    83,705,503       46,218,991  
 

 

 

 

 

 

 

 

Total liabilities

    411,325,247       190,980,646  
 

 

 

 

 

 

 

 

   
 

 

 

 

 

 

 

 

Total shareholders’ equity

    426,208,518       182,819,626  
 

 

 

 

 

 

 

 

   

Dividends received

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

Revenues

    96,984,774       43,995,473  

Interest income

    17,923,766       3,537,622  

Depreciation and amortization

    (24,065,816)       (9,703,015)  

Interest loss

    (10,535,582)       (6,333,978)  

Income tax

    (9,021,265)       245,555  

Operating profit

    54,993,517       21,716,241  
 

 

 

 

 

 

 

 

Net profit

    19,607,052       15,190,407  

Other comprehensive income

    204,878,306       45,351,434  
 

 

 

 

 

 

 

 

Total comprehensive income

    224,485,358       60,541,841  
 

 

 

 

 

 

 

 

 

(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 SEPTEMBER 30, 2023 AND COMPARATIVE INFORMATION (UNAUDITED)

   LOGO

 

12. INVENTORIES

 

     September 30, 2023          December 31, 2022      

Finished goods

     389,077          202,465    

Crude oil and natural gas

     169,442          79,511    

Products in process

     20,933          9,083    

Raw materials, packaging materials and others

     37,085          16,707    
  

 

 

      

 

 

   
                         616,537     (1)                           307,766     (1) 
  

 

 

      

 

 

   

 

(1)

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

13. OTHER RECEIVABLES

 

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

Receivables from services and sales of other assets

    -        5,444            2,238        663   

Tax credit and export rebates

    49,797       15,759           27,086       61,958  

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

    9,765       1,931           1,750       5,359  

Collateral deposits

    2       5,012                  2       961  

Prepaid expenses

    6,306       9,188           4,091       7,193  

Advances and loans to employees

    120       2,008           97       948  

Advances to suppliers and custom agents (2)

    -       53,599           -       29,269  

Receivables with partners in JO

    3,747       65,814           2,752       31,659  

Insurance receivables

    -       -           -       60  

Miscellaneous

    1,928       12,028           1,144       5,301  
 

 

 

 

 

 

 

 

     

 

 

 

 

 

 

 

    71,665       170,783           39,160       143,371  

Provision for other doubtful receivables

    (760)       (1,566)           (2,692)       (140)  
 

 

 

 

 

 

 

 

     

 

 

 

 

 

 

 

                     70,905                       169,217                             36,468                       143,231  
 

 

 

 

 

 

 

 

     

 

 

 

 

 

 

 

 

(1)

See Note 37 for information about related parties.

(2)

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

14. TRADE RECEIVABLES

 

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

Accounts receivable and related parties (1) (2)

    10,924       543,181           10,815       279,611  

Provision for doubtful trade receivables

                       (9,788)                          (21,565)                                     (9,788)                          (13,410)  
 

 

 

 

 

 

 

 

     

 

 

 

 

 

 

 

    1,136       521,616           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 nine-month period ended September 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)  

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

    -         5,295  

Decreases charged to income

    -         (524)  

Applications due to utilization

    -         (1,212)  

Net exchange and translation differences

    -         5,271  

Result from net monetary position (1)

    -         (675)  
     
 

 

 

 

   

 

 

 

Balance as of September 30, 2023

    9,788     (2)      21,565  
 

 

 

 

   

 

 

 

 

(1)

Includes the adjustment for inflation of opening balances of the provision for doubtful trade receivables of 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 the net profit / (loss) for the period.

(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 SEPTEMBER 30, 2023 AND COMPARATIVE INFORMATION (UNAUDITED)

   LOGO

 

15. INVESTMENTS IN FINANCIAL ASSETS

 

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

Investments at amortized cost

       

Public securities (1)

    -        13,068        35,664        28,675   

Private securities - NO

    3,755       -       -       532  

Term deposits (2)

    -       23,263       -       14,253  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                                    3,755                                       36,331                                       35,664                                       43,460  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments at fair value with changes in results

       

Public securities (1)

    -       27,130       -       13,029  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    -       27,130       -       13,029  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    3,755       63,461       35,664       56,489  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

See Note 37.

(2)

Corresponds to term deposits with the BNA.

16. CASH AND CASH EQUIVALENTS

 

     September 30, 2023        December 31, 2022

Cash and banks (1)

     116,261           65,407   

Short-term investments

     252,251     (2)       11,943  

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

     84,243          59,524  
  

 

 

 

    

 

 

 

                         452,755                              136,874  
  

 

 

 

    

 

 

 

 

(1)

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

(2)

Includes 233,079 of BCRA bills and 15,683 of term deposits and other investments with the BNA.

(3)

See Note 7.

17. PROVISIONS

Changes in the Group’s provisions for the nine-month period ended September 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)         -