Report of Foreign Issuer Pursuant to Rule 13a-16 or 15d-16 (6-k)

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SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 6-K

 

 

Report of Foreign Issuer

Pursuant to Rule 13a-16 or 15d-16

of the Securities Exchange Act of 1934

For the month of May 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  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):

Yes  ☐            No  ☒

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):

Yes  ☐            No  ☒

 

 

 

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CONTENT

 

1. MAIN HIGHLIGHTS			2
2. ANALYSIS OF CONSOLIDATED RESULTS			4
3. EBITDA AND ADJUSTED EBITDA RECONCILIATION			7
4. ANALYSIS OF RESULTS BY BUSINESS SEGMENT			10
4.1. UPSTREAM			11
4.2. INDUSTRIALIZATION			15
4.3. COMMERCIALIZATION			18
4.4. GAS AND POWER			21
4.5. CORPORATE AND OTHER			23
5. LIQUIDITY AND SOURCES OF CAPITAL			24
5.1. CASH FLOW SUMMARY			24
5.2. NET DEBT			25
6. TABLES AND NOTES			27
6.1. CONSOLIDATED INCOME STATEMENT			27
6.2. CONSOLIDATED BALANCE SHEET			28
6.3. CONSOLIDATED CASH FLOW STATEMENT			29
6.4. MAIN PHYSICAL MAGNITUDES			31

 

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Basis of Presentation

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

 

Summary Consolidated Financials Unaudited Figures, in US$ million		1Q22				4Q22				1Q23				Y/Y Δ				Q/Q Δ
Revenues			3,760				4,645				4,238				12.7	%			-8.8	%
EBITDA			1,060				1,223				1,116				5.3	%			-8.7	%
Adjusted EBITDA			995				933				1,044				5.0	%			11.9	%
Operating income before impairment of assets			404				467				335				-17.1	%			-28.3	%
Operating income			404				442				335				-17.1	%			-24.2	%
Net income before impairment of assets			267				480				341				27.7	%			-29.0	%
Net income			267				464				341				27.7	%			-26.5	%
EPS			0.68				1.19				0.87				27.9	%			-26.9	%
Capex			730				1,421				1,298				77.9	%			-8.6	%
FCF			379				(188	)			(17	)			N/A				-91.0	%
Cash and cash equivalents			1,329				1,092				1,296				-2.5	%			18.7	%
Total debt			7,242				7,088				7,339				1.3	%			3.5	%

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

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

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

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

1. MAIN HIGHLIGHTS

 

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Adjusted EBITDA reached US$1,044 million, expanding 5% y/y and 12% sequentially driven mainly by the expansion of oil production and higher processing levels. Domestic prices for gasoline and diesel decreased slightly on a sequential basis, but stood at 16% y/y.

 

•

Total hydrocarbon production continued with a positive trend averaging 511 Kboe/d, increasing 2% q/q and 1% y/y, driven by a solid inter-annual expansion of 7% in crude oil production that resulted in the highest quarterly mark since 2016.

 

•

Shale oil production continued delivering an impressive growth rate of 31% y/y, while shale gas production increased 9% y/y, both on track to meet the targets for the year.

 

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Domestic fuels’ demand expanded almost 4% versus 1Q22 but softened 3% versus the previous quarter on the back of lower diesel demand.

 

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Processing levels at our refineries reached 307 Kbbl/d, the highest mark in the last 13 years, expanding 5% sequentially and 9% y/y, primarily driven by the revamping of a topping unit at La Plata refinery.

 

•

Total OPEX increased 28% y/y, primarily as a result of a negative evolution of macroeconomic variables such as inflation, wages, and currency devaluation. However, total OPEX contracted 8% q/q primarily driven by seasonal effects and to non-cash charges recorded in 4Q22.

 

•

CAPEX activity totaled US$1,298 million, increasing 78% y/y while contracting 9% q/q, representing a good starting point to meet the plan for the year.

 

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Free cash flow was almost flat during the first quarter at negative US$17 million, taking our net debt to US$6,043 million and maintaining flat the net leverage ratio at 1.2x.

 

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2. ANALYSIS OF CONSOLIDATED RESULTS

 

Consolidated Revenues Breakdown Unaudited Figures, in US$ million		1Q22				4Q22				1Q23				Y/Y Δ				Q/Q Δ
Diesel			1,282				1,774				1,620				26.3	%			-8.7	%
Gasoline			816				885				892				9.4	%			0.9	%
Natural gas as producers (third parties)			311				283				270				-13.1	%			-4.5	%
Other			883				1,167				977				10.6	%			-16.2	%
Total Domestic Market			3,292				4,108				3,759				14.2	%			-8.5	%
Jet fuel			86				160				162				87.4	%			0.8	%
Grain and flours			113				52				5				-95.7	%			-90.7	%
Crude oil			5				21				12				135.8	%			-40.8	%
Petchem & Other			264				304				300				13.7	%			-1.3	%
Total Export Market			468				537				479				2.2	%			-10.9	%
Total Revenues			3,760				4,645				4,238				12.7	%			-8.8	%

During 1Q23, revenues totaled US$4,238 million, decreasing by 8.8% q/q and increasing by 12.7% y/y. On a sequential basis, this decrease was primarily due to lower volumes dispatched of diesel, a seasonal contraction of fertilizers sales, lower prices of products that correlate closely with international prices, such as lubricants, jet fuel, propane, petrochemicals and coke, and a slight decrease in local fuels prices.

When analyzing 1Q23 revenues, it is worth highlighting:

 

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Diesel sales in the domestic market (retail and wholesale) – 38.2% of total revenues –decreased 8.7% q/q driven by a contraction of 3.0% in prices, and 5.9% in volumes dispatched—affected by the impact of two fewer days of the 1Q23 versus 4Q22 and the contraction of the diesel demand in the agro business, which declined by 14.9% q/q, driven by the normal seasonality of the first quarter, particularly affected by the severe drought recorded in Argentina in recent months-.

 

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Gasoline sales in the local market – 21.1% of total revenues – slightly increased by 0.9% q/q, primarily due to higher volumes dispatched of 1.9%, recording once again the highest quarterly mark in the company’s history, partially offset by lower average prices of 1.0%.

 

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Natural gas sales as producers sold to third parties in the domestic market – representing 6.4% of total revenues – decreased by 4.5% q/q related to lower volumes sold of 3.9% while prices remained almost flat.

 

•

Other domestic sales decreased by 16.2% q/q mainly due to lower seasonal sales of fertilizers and lower prices of international-priced products such as fertilizers, lubricants, jet fuel, propane, petrochemicals and coke.

 

•

Export revenues decreased by 10.9% q/q, primarily driven by lower exports of grain and flours as a result of the severe drought previously noted.

 

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Unaudited Figures, in US$ million		1Q22				4Q22				1Q23				Y/Y Δ				Q/Q Δ
Lifting cost			(534	)			(668	)			(669	)			25.4	%			0.2	%
Other Upstream			(82	)			(148	)			(116	)			41.7	%			-21.3	%
Industrialization cost			(318	)			(441	)			(415	)			30.4	%			-5.9	%
Commercialization, G&P, Corp. & Other			(164	)			(274	)			(206	)			25.9	%			-24.8	%
Total OPEX			(1,097	)			(1,530	)			(1,406	)			28.2	%			-8.1	%
Depreciation & Amortization			(651	)			(744	)			(775	)			19.0	%			4.2	%
Royalties			(216	)			(250	)			(236	)			9.6	%			-5.6	%
Other costs			(244	)			(265	)			(249	)			1.7	%			-6.1	%
Total Other Costs			(1,111	)			(1,259	)			(1,260	)			13.4	%			0.1	%
Fuels imports			(337	)			(355	)			(400	)			18.7	%			12.6	%
Crude oil purchases to third parties			(255	)			(336	)			(386	)			51.3	%			14.9	%
Biofuel purchases			(167	)			(269	)			(230	)			37.6	%			-14.8	%
Non-oil agro purchases			(190	)			(142	)			(114	)			-39.9	%			-19.6	%
Other purchases			(189	)			(224	)			(224	)			18.6	%			0.3	%
Stock variations			1				(259	)			126				12500.0	%			N/A
Total Purchases & Stock Variations			(1,137	)			(1,585	)			(1,228	)			8.0	%			-22.5	%
Other operating results, net			(11	)			196				(9	)			-18.2	%			N/A
Impairment of assets			—				(25	)			—				N/A				N/A
Operating Costs + Purchases + Impairment of Assets			(3,356	)			(4,203	)			(3,903	)			16.3	%			-7.1	%

Stock variations include price effects by US$(18) million in 1Q22, US$(20) million for 4Q22 and US$(29) million for 1Q23.

In terms of costs, operating expenses (“OPEX”) in 1Q23 totaled US$ 1,406 million, decreasing by 8.1% compared to 4Q22. This contraction was impacted by non-recurrent charges recorded in 4Q22 and certain seasonality of corporate activities. When compared to 1Q22, total OPEX increased by 28.2% primarily driven by the continued overall accelerated inflationary environment and a slower-than-expected pace of the currency depreciation, which increased the pressure on operating costs in dollar terms, coupled with higher activity across our business, on the back of higher O&G production, processing levels and local fuels demand. As a consequence, unit OPEX per barrel of hydrocarbon produced, decreased by 8.2% q/q, and went up by 27.0% y/y.

Total Purchases and Stock Variations, a category highly correlated with demand levels for refined and non-oil agro products and inventory valuation, decreased by 22.5% q/q and increased by 8% y/y.

When analyzing 1Q23 purchases, it is worth highlighting:

 

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Gasoline and diesel imports increased by 12.0% q/q, driven by 33.8% higher imported volumes, partially offset by lower prices of 16.3%. The expansion of both gasoline and diesel imports volumes, which represented 11.8% of total fuels sales, coupled with higher fuels produced by our refineries allowed the company to restock inventories.

 

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Crude oil purchases grew by 14.9% q/q led by an increase in volumes of 14.3% to catch the increase in our refineries processing levels and a slight rise in prices of 0.6%.

 

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Biofuel purchases decreased by 14.8%, where purchases of biodiesel declined 23.6%, and purchases of bioethanol dropped 4.8%. Biodiesel purchases contraction was mainly the result of the decrease in diesel demand and the lower blend in diesel sales, the latter due to supply constrains recorded in the local market. Besides, bioethanol purchases decreased by 4.8% led by lower prices by 6.7%, partially offset by higher volumes aligned with the higher gasoline demand.

 

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Non-oil agro purchases decreased by 19.6% sequentially, mainly due to a lower demand of grains and flours, aligned with lower seasonal sales noted above.

In terms of our inventories, a positive stock variation of US$126 million was recorded during 1Q23, mainly due to higher diesel and gasoline inventories, partially offset by a contraction in the replacement cost of our inventories; in comparison with a negative stock variation of US$259 million during 4Q22, mainly led by inventory consumption.

 

Consolidated Net Income Breakdown Unaudited Figures, in US$ million		1Q22				4Q22				1Q23				Y/Y Δ				Q/Q Δ
Operating income			404				442				335				-17.1	%			-24.2	%
Interests in companies and joint ventures			115				58				89				-22.6	%			53.4	%
Financial results, net			(55	)			120				2				N/A				-98.3	%
Earnings before tax			464				620				426				-8.2	%			-31.3	%
Income tax			(197	)			(156	)			(85	)			-56.9	%			-45.5	%
Net Income			267				464				341				27.7	%			-26.5	%
Net Income before impairment of assets			267				480				341				27.7	%			-29.0	%

Net financial results for 1Q23 represented a US$2 million gain compared to the gain of US$120 million posted in 4Q22. This was primarily as a result of a positive extraordinary charge related to the provision for hydrocarbon wells abandonment obligations in 4Q22 and the lower devaluation of Argentinian currency resulting in a decrease of net FX gains.

As a result of the operating and financial evolution, earnings before taxes in 1Q23 reached a positive mark of US$ 426 million, decreasing by 31.3% q/q, while net income for the quarter resulted in a gain of US$341 million, compared to the gain of US$464 million in 4Q22.

 

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3. EBITDA AND ADJUSTED EBITDA RECONCILIATION

Adjusted EBITDA for 1Q23 reached a quarterly mark of US$1,044 million, increasing by 11.9% when compared to 4Q22. This variation was mainly due to the expansion in oil production, the increasing processing levels in our refineries and lower OPEX, partially offset by lower realization prices of international-priced products and, to a lesser extent, of local fuels.

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

 

Reconciliation of Adjusted EBITDA Unaudited Figures, in US$ million		1Q22				4Q22				1Q23				Y/Y Δ				Q/Q Δ
Net Income			267				464				341				27.7	%			-26.5	%
Financial results, net			55				(120	)			(2	)			N/A				-98.3	%
Interests in companies and joint ventures			(115	)			(58	)			(89	)			-22.6	%			53.4	%
Income tax			197				156				85				-56.9	%			-45.5	%
Unproductive exploratory drillings			5				12				6				20.0	%			-50.0	%
Depreciation & amortization			651				744				775				19.0	%			4.2	%
Impairment of assets			—				25				—				N/A				N/A
EBITDA			1,060				1,223				1,116				5.3	%			-8.7	%
Leasing			(65	)			(72	)			(72	)			10.5	%			-0.2	%
Other adjustments			—				(218	)			—				N/A				N/A
Adjusted EBITDA			995				933				1,044				5.0	%			11.9	%

 

EBITDA breadkdown by segment Unaudited Figures, in US$ million		Upstream				Industrialization				Commercialization				Gas & Power				Corporate & Other				Consolid. Adjustments				Total
Operating income			144				188				70				(27	)			(64	)			24				335
Depreciation & amortization			602				124				19				15				15				—				775
Unproductive exploratory drillings			6				—				—				—				—				—				6
Impairment of assets			—				—				—				—				—				—				—
EBITDA			752				312				89				(12	)			(49	)			24				1,116
Leasing			(42	)			(20	)			(10	)			—				—				—				(72	)
Other adjustments			—				—				—				—				—				—				—
Adjusted EBITDA			710				292				79				(12	)			(49	)			24				1,044

 

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The main causes of the sequential variations in Adjusted EBITDA between 1Q23 and 4Q22, are displayed on the below chart:

 

 

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Upstream (+US$53 million): The positive variation was driven by a 2.3% higher hydrocarbon production and lower OPEX.

 

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Industrialization (+US$16 million): The EBITDA increase was mainly due to higher processing levels by 4.7%, lower OPEX by 5.9%; partially offset by lower local fuels prices of 3%, and a 5% decrease in other-refined-products basket prices.

 

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Commercialization (+US$17 million): The EBITDA expansion was primarily due to lower OPEX; partially offset by lower local fuels prices of 3%, and a 5% decrease in other-refined-products basket prices.

 

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Gas & Power (-US$24 million): The EBITDA decrease can be explained mainly due to seasonality factors that negatively impacted Metrogas results and lower regasification activities.

 

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Corporate & Eliminations (+US$50 million): The EBITDA increase is mainly explained by lower OPEX (-19%) and a higher EBITDA of our subsidiary AESA.

The main causes of the y/y variations in Adjusted EBITDA between 1Q23 and 1Q22, are displayed on the below chart:

 

 

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Upstream (+US$34 million): The positive variation was driven by higher hydrocarbon production of 1.0%; higher crude oil price by 13.6%; partially offset by 28% higher OPEX

 

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Industrialization (+US$66 million): The EBITDA expansion was driven by a 9.0% increase in processing levels and higher local fuels prices of 16%; partially offset by 30% higher OPEX.

 

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Commercialization (-US$6 million): The EBITDA decreased was due to higher OPEX; partially offset by higher local fuels prices of 16%.

 

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Gas & Power (-US$23 million): The EBITDA contraction can be explained mainly due to lower Metrogas results followed by higher OPEX.

 

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Corporate & Eliminations (-US$22 million): The EBITDA contraction is mainly explained by higher OPEX in corporate areas.

 

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4. ANALYSIS OF RESULTS BY BUSINESS SEGMENT

In 1Q23 there was a reorganization of the business segments considered for financial reporting, aligned with the recent organizational changes of the company. Consequently, the comparative information corresponding to 1Q22 and 4Q22 has been restated. The main change of this restructuring is the separation of the Downstream segment into two new segments:

 

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the Industrialization segment, which consolidates the activities related to the midstream oil, refining, transportation of oil and refined products and petrochemical production; and

 

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the Commercialization segment, focused on the commercial activities of refined and petrochemical products and trading activities, adding the commercialization of natural gas as producer, an activity that was previously part of the Gas & Power segment.

In addition, the assets related to the exploration and sand production for fracking, which were formerly part of the segment Corporation & Others, are now included in the Upstream segment.

 

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4.1. UPSTREAM

 

Upstream Operating data Unaudited Figures		1Q22				4Q22				1Q23				Y/Y Δ				Q/Q Δ
Net Production Breakdown
Crude Production (Kbbld)			222.1				231.8				238.5				7.3	%			2.9	%
Conventional			148.7				143.5				143.3				-3.6	%			-0.1	%
Shale			70.4				85.1				92.5				31.4	%			8.6	%
Tight			3.1				3.1				2.7				-12.5	%			-14.4	%
NGL Production (Kbbld)			44.2				42.6				42.9				-3.0	%			0.8	%
Conventional			15.8				13.2				12.5				-21.0	%			-6.0	%
Shale			26.9				27.9				29.3				8.8	%			4.8	%
Tight			1.6				1.4				1.2				-25.0	%			-14.9	%
Gas Production (Mm3d)			38.1				35.7				36.5				-4.2	%			2.0	%
Conventional			15.5				14.1				14.3				-7.7	%			1.1	%
Shale			15.3				16.1				16.7				9.5	%			3.8	%
Tight			7.3				5.5				5.4				-25.5	%			-0.9	%
Total Production (Kboed)			505.8				499.2				510.6				1.0	%			2.3	%
Conventional			261.9				245.7				245.7				-6.2	%			0.0	%
Shale			193.3				214.4				226.9				17.4	%			5.8	%
Tight			50.6				39.0				38.1				-24.7	%			-2.5	%
Average realization prices
Crude Oil (USD/bbl)			58.8				66.3				66.9				13.7	%			0.9	%
Natural Gas (USD/MMBTU)			3.0				3.0				3.0				-0.2	%			-0.4	%

Total hydrocarbon production totaled 510.6 Kboe/d during 1Q23, increasing 2.3% sequentially and 1.0% on a year over year basis. Crude oil production recorded a new sequential expansion of 2.9% while achieving a strong inter-annual increase of 7.3%. On the natural gas side, production jumped 2.0% sequentially, while NGLs production increased 0.8% q/q.

Shale production continued expanding strongly during the quarter, where shale oil and shale gas increased by 31.4% and 9.5% y/y, respectively, highlighting the new sequential increase of 17.4% in our shale production. In that sense, shale production represented 44.4% of our total consolidated production in 1Q23, growing from 38.2% a year ago.

Average daily crude oil production increased by 2.9% sequentially, on the back of the very solid increase in shale oil production previously mentioned, while conventional production managed to remain stable, driven by our strategy of continuing advancing tertiary recovery techniques on conventional fields. In that sense, tertiary production recorded an expansion of 7% versus the previous quarter and around 50% against the same quarter of 2022, highlighting the Manantiales Behr block, where we are currently operating 10 Polymer Injection Units and its tertiary production represents more than 30% of its total production, as well as Chachahuen, El Trebol and Los Perales blocks where we are obtaining promising results.

 

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On the natural gas side, average daily production increased by 2.0% q/q, driven by an expansion of 3.8% in shale gas production, coupled with a 1.0% increase in conventional production. In a year over year comparison, natural gas production decreased by 4.2%, affected by production curtailments due to lack of demand.

In 1Q23, total segment revenues reached US$1,828 million, increasing by 0.8% compared to 4Q22 and 14.4% y/y.

 

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Crude oil revenues expanded by 1.1% q/q, mainly led by a rise of 0.9% in price and a slight increase of 0.2% in volumes sold.

 

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Natural gas revenues slightly went down by 0.4 q/q, mainly due to a minor decrease of the realization price of 0.4%.

 

upstream Financials Unaudited Figures, in US$ million		1Q22				4Q22				1Q23				Y/Y Δ				Q/Q Δ
Crude oil			1,150				1,391				1,406				22.2	%			1.1	%
Natural gas			387				359				358				-7.7	%			-0.4	%
Other			61				63				65				6.6	%			2.7	%
Revenues			1,598				1,813				1,828				14.4	%			0.8	%
Depreciation & amortization			(477	)			(558	)			(602	)			26.2	%			7.9	%
Lifting cost			(534	)			(668	)			(669	)			25.4	%			0.2	%
Royalties			(213	)			(247	)			(233	)			9.4	%			-5.7	%
Exploration expenses			(10	)			(23	)			(18	)			80.0	%			-21.7	%
Other			(133	)			116				(162	)			22.4	%			N/A
Operating income before impairment of assets			232				434				144				-37.9	%			-66.8	%
Impairment of assets			—				(25	)			—				N/A				N/A
Operating income			232				409				144				-37.9	%			-64.8	%
Depreciation & amortization			477				558				602				26.2	%			7.9	%
Unproductive exploratory drillings			5				12				6				20.0	%			-50.0	%
Impairment of assets			—				25				—				N/A				N/A
EBITDA			714				1,004				752				5.3	%			-25.1	%
Leasing			(37	)			(48	)			(42	)			11.5	%			-13.9	%
Other adjustments			—				(298	)			—				N/A				N/A
Adjusted EBITDA			676				658				710				5.1	%			8.0	%
Capex			599				1,007				1,015				69.4	%			0.8	%
Unit Cash Costs Unaudited Figures, in US$/boe		1Q22				4Q22				1Q23				Y/Y Δ				Q/Q Δ
Lifting Cost			11.7				14.5				14.6				24.5	%			0.3	%
Royalties and other taxes			5.9				6.7				6.5				10.0	%			-3.7	%
Other Costs			2.1				3.5				2.7				32.2	%			-21.2	%
Total Cash Costs (US$/boe)			19.7				24.8				23.8				20.9	%			-3.8	%

 

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In terms of our cost structure per unit basis, total cash costs decreased by 3.8% sequentially, and increased by 20.9% y/y, due to the following:

 

•

Lifting cost remained flat q/q. When breaking down our lifting costs by type of operation in 1Q23, our unconventional activities averaged 4.9 US$/BOE, an increase of 9.1% q/q due to higher activity and energy costs that overrun the expanded production during the quarter, while our conventional activities averaged 23.6 US$/BOE, a rise of 0.7% q/q. Lifting cost within our shale core hub averaged 4.0 US$/BOE in 1Q23, recording a sequential increase of 8.2%, driven by higher energy costs and the increase in activity described above.

 

•

Royalties within the upstream segment and other taxes decreased by 3.7% sequentially, mainly due to a decrease of crude oil royalties by 6.9% due to some retroactive adjustments. Moreover, other taxes remained roughly stable q/q.

 

•

The sequential decrease in Other costs is driven by non-recurrent charges recorded in 4Q22.

In summary, Adjusted EBITDA for the upstream segment reached US$710 million in the quarter, growing by 8.0% q/q and 5.1% y/y.

 

 

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CAPEX:

Upstream CAPEX totaled US$1,015 million in 1Q23, increasing by 0.8% sequentially and by 69.4% y/y, where 70.6% was allocated to drilling and workover activities, 25.4% to new facilities or the expansion of existing ones, and the remaining 3.9% to exploration and other upstream activities.

During 1Q23, drilling and workover activities showed a positive trend, completing a total of 85 new wells in our operated blocks, including 38 new wells completed in our unconventional operated blocks, 29 of shale oil and 9 of shale gas.

Regarding our shale operations, during 1Q23 we made progress in the following developments:

 

•

We put in operations the third crude oil treatment plant in Vaca Muerta, located at Bandurria Sur block, with an initial processing capacity of 4,000 m3/d, which is targeted to be expanded to 12,000 m3/d during the year.

 

•

We tied-in four oil wells at our fully-owned Loma Amarilla block and finished drilling one well at Las Tacanas block, targeting natural gas production.

 

•

We achieved the second best quarterly mark in fracking speed at 1,666 stages, only surpassed by 3Q22 at 1,800 stages.

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

 

 

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4.2. INDUSTRIALIZATION

 

Industrialization Operating data Unaudited Figures		1Q22				4Q22				1Q23				Y/Y Δ				Q/Q Δ
Crude processed (Kbbld)			282.6				293.4				307.2				8.7	%			4.7	%
Refinery utilization (%)			86	%			89	%			94	%			772bps				421bps

Nominal capacity at 328.1 Kbbl/d since 1Q21.

Crude oil processed during the quarter stood at 307.2 Kbbl/d, which represented an increase of 4.7% q/q and 9.0% y/y, achieving the highest quarterly mark in the last 13 years. The expansion of the utilization rate of our refineries came from the revamping of a topping unit at the La Plata Refinery that eliminated bottlenecks in the processing of light crude oil, accompanied by the revamping of the pump station Puesto Hernandez in the Neuquina basin. In that sense, it is worth noting that during this quarter we achieved a record high of gasoline and middle distillates production since 2007 through the maximization of our refinery’s conversion levels. Moreover, the y/y increase in processing levels was also driven by a greater availability of crude oil in the local market, due to the increase in our crude oil production and higher purchases from third parties.

 

Industrialization Financials Unaudited Figures, in US$ million		1Q22				4Q22				1Q23				Y/Y Δ				Q/Q Δ
Revenues			2,564				3,240				3,104				21.1	%			-4.2	%
Depreciation & amortization			(108	)			(125	)			(124	)			14.8	%			-0.8	%
Industrialization cost			(318	)			(441	)			(415	)			30.4	%			-5.9	%
Fuels imports (third parties)			(304	)			(307	)			(344	)			13.1	%			12.0	%
Crude oil purchases (intersegment + third parties)			(1,420	)			(1,726	)			(1,802	)			26.9	%			4.4	%
Biofuel purchases (third parties)			(167	)			(269	)			(230	)			37.6	%			-14.8	%
Stock variations			87				(116	)			91				4.9	%			N/A
Other			(115	)			(120	)			(94	)			-18.2	%			-21.9	%
Operating income before impairment of assets			220				136				188				-14.5	%			38.2	%
Impairment of assets			—				—				—				N/A				N/A
Operating income			220				136				188				-14.5	%			38.2	%
Depreciation & amortization			108				125				124				14.8	%			-0.8	%
EBITDA			328				261				312				-4.9	%			19.6	%
Leasing			(3	)			(1	)			(20	)			625.2	%			1867.5	%
Adjusted EBITDA			325				260				292				-10.3	%			12.3	%
Holding results from oil products			51				(65	)			(48	)			N/A				-25.2	%
Adjusted EBITDA excl. holding results from oil products			274				325				340				24.3	%			4.8	%
Capex			97				289				202				108.2	%			-30.1	%

Stock variations include price effects by US$51 million in 1Q22, US$(65) million for 4Q22 and US$(48) million for 1Q23.

Revenues – mainly intersegment revenues with Commercialization segment - totaled US$3,104 million in 1Q23, a decrease of 4.2% compared to 4Q22, mainly due to lower prices and lower volumes dispatched of diesel.

 

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OPEX for this segment went down by 5.9% q/q, mainly due to lower ordinary maintenance and programmed shutdown activity, and owing to non-recurrent charges recorded in 4Q22.

Separately, gasoline and diesel imports increased by 12.0% q/q, primarily due to 33.8% higher imported volumes, partially offset by lower prices of 16.3%. The expansion of both gasoline and diesel imports volumes, which represented 11.8% of total fuels sales, allowed us to build-up inventories that remained below historical average levels in the preceding quarter.

Crude oil purchases (including intersegment purchases to our Upstream operations) increased by 4.4% q/q, driven by higher volumes of 2.3%, on the back of higher processing levels, and a slight increase in prices of 2.0%. Biofuel purchases decreased by 14.8%, with purchases of biodiesel and bioethanol contracting 23.6%, and 4.8%, respectively. Biodiesel variation was mainly the result of the decrease in diesel demand and the lower blend in diesel sales, the latter due to a lack of biodiesel supply in the market. Besides, bioethanol purchases decreased by 4.8% led by lower prices by 6.7%, partially offset by higher volumes owing to a slight growth in gasoline demand.

 

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CAPEX:

In 1Q23, Industrialization CAPEX totaled US$202 million, setting a 30.1% decrease compared to 4Q22 and a rise of 108.2% y/y. Out of the total, 59.8% was allocated to refining, 25.9% to Midstream Oil, 13.9% to logistics and the remaining 0.3% to others.

During 1Q23, we continued with the execution of the new fuel specifications project, including the construction of a new diesel hydrotreatment unit at the Luján de Cuyo refinery and a gasoline hydrotreatment and revamping of existing gasoline units, in La Plata industrial complex. The purpose of these works is to comply with the new fuel specifications established by Resolution No. 576/2019, which will come into force in 2024. In addition, we moved forward as planned with the revamping of the Topping D Unit of the La Plata refinery, which will allow to process greater shale oil levels and is expected to be ready by the end of 2023. In the same line, in the Luján de Cuyo Industrial Complex, the engineering and purchase of equipment for the revamping of Topping III continues, while in Plaza Huincul Refinery we keep progressing on the revamping of the Topping Unit.

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

 

•

Regarding the expansion of the existing system to the Atlantic, Oldeval has moved forward on its second stage of expansion, aiming at adding 20 Kbbl/d approximately of evacuation capacity, expected to be ready during the 3Q23. In addition, OTE has achieved solid progress in the expansion project, having initiated the preliminary works for the construction of two new storage facilities.

 

•

In connection with the project aimed at connecting Vaca Muerta to the Pacific, during the 1Q23 the Transandino pipeline successfully ended the in-line inspection test and we recorded a 60% progress in the construction of the Vaca Muerta North pipeline, which is expected to start operations between September and October of 2023.

 

•

Finally, regarding the Vaca Muerta South project, we have achieved solid progress on the engineering process for the new pipeline and export terminal and on the environmental impact studies for the full project.

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

 

 

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4.3. COMMERCIALIZATION

 

Commercialization Operating data Unaudited Figures		1Q22				4Q22				1Q23				Y/Y Δ				Q/Q Δ
Sales volume to third parties
Sales of refined products (Km3)			4,565				4,912				4,790				4.9	%			-2.5	%
Total domestic market (*)			4,209				4,431				4,346				3.3	%			-1.9	%
of which Gasoline			1,410				1,487				1,515				7.4	%			1.9	%
of which Diesel			2,030				2,181				2,052				1.1	%			-5.9	%
Total export market			356				482				444				24.8	%			-7.9	%
Sales of petrochemical products (Ktn)			129				116				141				9.6	%			21.9	%
Domestic market			99				95				83				-16.1	%			-12.4	%
Export market			30				21				58				95.9	%			178.6	%
Natural Gas (Mm3)			3,150				2,975				2,845				-9.7	%			-4.4	%
Domestic market			2,938				2,796				2,649				-9.8	%			-5.2	%
Export market			213				179				196				-8.0	%			9.2	%
Sales of fertilizers, grain, flours and oils (Ktn)			375				498				215				-42.6	%			-56.8	%
Domestic market			111				406				206				85.0	%			-49.3	%
Export market			264				92				9				-96.5	%			-89.9	%
Net average prices
Gasoline (USD/m3) (domestic market)			532				544				536				0.8	%			-1.5	%
Diesel (USD/m3) (domestic market)			596				770				745				25.1	%			-3.2	%
Other refined products (USD/bbl) (including exports)			85				90				86				1.0	%			-4.9	%

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

(*)	Includes volumes sold by Industrialization

Domestic gasoline sales volumes increased by 1.9% compared to 4Q22, while domestic diesel volumes decreased by 5.9% q/q, affected by the impact of two fewer days of the 1Q23 versus 4Q22 and the contraction of the diesel demand in the agro business described above, which declined by 14.9%. Furthemore, the diesel sales in the Argentine domestic market contracted by 5.9% q/q, remaining flat our market share for this product; while the gasoline’s market share slighty increased by 0.7% q/q.

Petrochemical volumes exports grew 178.6% q/q, mainly due to higher methanol exports as a consequence of the plant shutdown in 4Q22 that affected methanol production for that quarter, and also led by a lower demand in the domestic market in 1Q23 as a consequence of the severe drought previously mentioned.

Natural gas volumes exports grew by 9.2% q/q, owing to new signed agreements.

Grain, flours and oil exports decreased by 89.9% q/q, as a result of the severe drought previously described.

 

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Net average diesel prices in the domestic market measured in U.S. dollar terms decreased by 3.2% q/q, while net average gasoline prices decreased by 1.5% q/q, as a result of our continued strategy of adjusting prices of local fuels in a way to mitigate, to the largest possible extent, the effect of the depreciation of the currency, while reducing or avoid extending, the gap between the pricing of local fuels against international parities. Moreover, the average price for “Other refined products” declined by 4.9% q/q, on the back of the continuous general downward trend in international prices.

 

Commercialization Financials Unaudited Figures, in US$ million		1Q22				4Q22				1Q23				Y/Y Δ				Q/Q Δ
Diesel (third parties)			1,267				1,774				1,610				27.0	%			-9.2	%
Gasoline (third parties)			816				885				889				9.0	%			0.4	%
Natural gas as producers (intersegment + third parties)			389				364				355				-8.7	%			-2.3	%
Other domestic market			670				909				725				8.2	%			-20.2	%
Export market			435				499				437				0.6	%			-12.3	%
Revenues			3,577				4,430				4,016				12.3	%			-9.3	%
Depreciation & amortization			(26	)			(27	)			(19	)			-26.9	%			-29.6	%
Refined & petrochemicals Products purchases (intersegment)			(2,417	)			(3,073	)			(2,894	)			19.8	%			-5.8	%
Non-oil agro purchases (third parties)			(190	)			(142	)			(114	)			-39.9	%			-19.6	%
Natural gas purchases (intersegment + third parties)			(397	)			(368	)			(359	)			-9.6	%			-2.4	%
Stock variations			16				(185	)			2				-86.5	%			N/A
Commercialization cost & Other			(460	)			(582	)			(561	)			22.0	%			-3.6	%
Operating income before impairment of assets			103				52				70				-32.0	%			34.6	%
Impairment of assets			—				—				—				N/A				N/A
Operating income			103				52				70				-32.0	%			34.6	%
Depreciation & amortization			26				27				19				-26.9	%			-29.6	%
EBITDA			129				79				89				-31.3	%			12.1	%
Leasing			(17	)			(17	)			(10	)			-42.2	%			-42.1	%
Other adjustments			—				—				—				N/A				N/A
Adjusted EBITDA			113				63				79				-29.7	%			26.5	%
Holding results from oil products			17				(10	)			(10	)			N/A				1.8	%
Adjusted EBITDA excl. holding results from oil products			96				72				89				-6.7	%			23.2	%
Capex			6				57				12				100.0	%			-78.9	%

Stock variations include price effects by US$43 million in 1Q22, US$(8) million for 4Q22 and US$(25) million for 1Q23.

Sales of natural gas as producers include domestic and external markets

Revenues during 1Q23 totaled US$4,016 million, a decrease of 9.3% compared to 4Q22, mainly due to lower volumes dispatched of diesel and non-oil agro products, and lower prices of refined products, aligned with the downward trend in international oil prices.

Refined & Petrochemicals Products purchases (intersegment) to Industrialization segment, decreased by 5.8% q/q, mainly due to lower prices and lower volumes dispatched of diesel.

Non-oil agro purchases decreased by 19.6%, aligned with the contraction in volumes sales.

 

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Finally, combining the results of the Industrialization and Commercialization segments, excluding petrochemicals and non-oil agro business, the Adjusted EBITDA of the Refining & Marketing business during the 1Q23 reached US$14.1 per barrel.

CAPEX:

In 1Q23, Commercialization CAPEX totaled US$12 million, setting a 78.9% decrease compared to the 4Q22 and a 100.0% rise y/y.

Besides the regular investments related to maintaining commercial facilities and improving safety conditions to comply with the environmental regulations for the dispatch of oil products, during the 1Q23 we continued progressing in the remodeling works of the Echeverría gas station, which we expect to inaugurate during the second quarter of 2023, as well as the construction of the agro commercial facility in Tres Arroyos.

 

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4.4. GAS AND POWER

 

GAS & POWER Unaudited Figures, in US$ million		1Q22				4Q22				1Q23				Y/Y Δ				Q/Q Δ
Natural gas retail (third parties)			72				78				65				-9.6	%			-16.6	%
Midstream Gas Revenues (intersegment + third parties)			51				55				54				6.1	%			-2.3	%
Other			26				44				26				-0.6	%			-40.5	%
Revenues			149				177				145				-2.7	%			-18.1	%
Depreciation & amortization			(23	)			(18	)			(15	)			-34.0	%			-15.8	%
Natural gas retail purchases (intersegment + third parties)			(42	)			(40	)			(50	)			20.2	%			25.0	%
Midstream Gas purchases (intersegment)			(16	)			(16	)			(19	)			16.5	%			16.1	%
Operating cost & Other			(72	)			(103	)			(88	)			21.8	%			-14.4	%
Operating income before impairment of assets			(4	)			(0	)			(27	)			575.0	%			N/A
Impairment of assets			—				—				—				N/A				N/A
Operating income			(4	)			(0	)			(27	)			575.0	%			N/A
Depreciation & amortization			23				18				15				-34.0	%			-15.8	%
Impairment of assets			—				—				—				N/A				N/A
EBITDA			19				18				(12	)			N/A				N/A
Leasing			(8	)			(6	)			—				N/A				N/A
Other adjustments			—				—				—				N/A				N/A
Adjusted EBITDA			11				12				(12	)			N/A				N/A
Capex			5				35				52				940.0	%			48.6	%

Revenues during 1Q23 totaled US$145 million, decreasing by 18.1% compared to 4Q22, mainly due to a decrease of 16.6% of natural gas sales from our controlled subsidiary Metrogas S.A. to the retail distribution segment (residential customers and small businesses) and to large customers (power plants and industries), mainly driven by lower natural gas volumes dispatched of 30.7% partially offset by higher average prices of 4.2%.

Other sales contracted 40.5% q/q, driven mainly by lower seasonal LNG regasification revenues, while Midstream sales (propane, butane and gasolines) decreased by 2.3%.

Natural gas retail purchases increased 25% q/q, mainly owing to a positive non-recurrent adjustment in 4Q22. On the other hand, Operating costs & other, decreased by 14.4% q/q, mainly led by lower OPEX from Midstream Gas business, due to non-recurrents charges recorded in 4Q22.

As a whole, Adjusted EBITDA recorded a loss of US$12 million during 1Q23, compared to a gain of US$12 million in 4Q22, mainly driven by the negative impact of our subsidiary Metrogas.

 

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CAPEX:

Gas & Power CAPEX totaled US$52 million in 1Q23, increasing by 48.6% compared to 4Q22. During the quarter, investments were mainly focused on the construction of new midstream gas facilities aiming at de-bottlenecking the potential of the Vaca Muerta formation. In that sense, we continued making progress in the revamping of the NGLs facility “Tex Loma La Lata” which is expected to start operations during the second half of 2023, increasing the processing capacity up to 6 Mm3/d of natural gas and 600 tons/d of NGLs in the core hub blocks. In addition, we also continued working in the Rincón del Mangrullo gas pipeline expansion project, aimed at improving the natural gas transportation capacity to the regulated system by 5 Mm3/d, estimating its completion by the end of the year.

 

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4.5. CORPORATE AND OTHER

 

Resultados Corporación & Otros Cifras no auditadas, en US$ millones		1T22				4T22				1T23				A/A Δ				T/T Δ
Ingresos			207				271				310				49.8	%			14.2	%
Costos operativos y otros			(263	)			(451	)			(374	)			42.2	%			-17.2	%
Resultado operativo antes de deterioro de activos			(56	)			(180	)			(64	)			14.3	%			-64.4	%
Deterioro de activos			—				—				—				N/A				N/A
Resultado operativo			(56	)			(180	)			(64	)			14.3	%			-64.4	%
Depreciaciones y amortizaciones			18				16				15				-16.7	%			-4.2	%
Deterioro de activos			—				—				—				N/A				N/A
EBITDA			(38	)			(164	)			(49	)			29.0	%			-70.2	%
Arrendamientos opex			—				—				—				N/A				N/A
Otros ajustes			—				80				—				N/A				N/A
EBITDA Ajustado			(38	)			(84	)			(49	)			29.0	%			-41.9	%
Inversiones			23				33				17				-26.1	%			-48.9	%

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

Corporate and Other Adjusted EBITDA represented a loss of US$49 million in 1Q23, compared to a loss of US$84 million in 4Q22.

The positive variation is mainly explained by lower seasonal marketing and media expenses , and through the improvement of AESA Adjusted EBITDA, which increased as a result of higher activity levels and due to non-recurrent charges in 4Q22.

 

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5. LIQUIDITY AND SOURCES OF CAPITAL

5.1. CASH FLOW SUMMARY

 

Summary Consolidated Cash Flow Unaudited Figures, in US$ million		1Q22				4Q22				1Q23				Y/Y Δ				Q/Q Δ
Cash BoP			611				834				773				26.5	%			-7.3	%
Net cash flow from operating activities			1,429				1,331				1,497				4.8	%			12.5	%
Net cash flow from investing activities			(843	)			(1,130	)			(1,189	)			41.0	%			5.2	%
Net cash flow from financing activities			(365	)			(155	)			17				N/A				N/A
FX adjustments & other			(37	)			(107	)			(84	)			127.0	%			-21.5	%
Cash EoP			795				773				1,014				27.5	%			31.2	%
Investment in financial assets			534				319				282				-47.2	%			-11.6	%
Cash + short-term investments EoP			1,329				1,092				1,296				-2.5	%			18.7	%
FCF			379				(188	)			(17	)			N/A				-91.0	%

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

In 1Q23 we continued the positive trend in our cash flow from operations, which reached US$1,497 million increasing 12.5% sequentially, due to higher EBITDA levels and positive working capital variations, the latter resulting from an increase in the dividends collected form our subsidiaries.

Net cash flow from investing activities was negative US$1,189 million, compared to negative US$1,130 million in 4Q22. This variation was mainly driven by lower sales and maturities of financial assets. In 1Q22, net cash flow from investing activities was negative US$843 million, significantly below the 1Q23, mainly driven by the expansion in our CAPEX plan.

Net cash flow from financing activities amounted to positive US$17 million in 1Q23 against a negative cash flow of US$155 in 4Q22 since the company resumed external financing, mainly through the local capital market and trade financial facilities.

As a result, operating cash flow from operations was almost enough to fund our investment plan, payments of interests and other expenses, resulting, in a slight negative free cash flow of US$17 million.

In terms of liquidity, our cash and short-term investments stood at US$1,296 million by the end of March 2023, an increase of US$204 million when compared to the previous quarter, as the company prepared for the second amortization of the international 2024 bond maturing in early April.

In terms of cash management, during the quarter we continued with an active asset management approach to minimize FX exposure, considering the regulations in force that prevent us from holding a larger portion of our liquidity in foreign currency. In that sense, in a context of limited available dollarized instruments in the local market and given the high level of liquidity that continued during this quarter, we ended up with a consolidated net FX exposure of 21.0% of total liquidity.

 

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5.2. NET DEBT

 

Net debt breakdown Unaudited Figures, in US$ million		1Q22				4Q22				1Q23				Q/Q Δ
Short-term debt			523				1,140				1,108				-2.8	%
Long-term debt			6,719				5,948				6,231				4.8	%
Total debt			7,242				7,088				7,339				3.5	%
Avg. Interest rate for AR$-debt			38.0	%			69.8	%			73,6	%
Avg. Interest rate for US$-debt			7.7	%			7.9	%			7,5	%
% of debt in AR$			5	%			3	%			3	%
Cash + short term investments			1,329				1,092				1,296				18.7	%
% of cash in AR$			61	%			50	%			56	%
Net debt			5,913				5,996				6,043				0.8	%

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

As of March, 31st, 2023, YPF’s consolidated net debt totaled US$6,043 million, increasing by US$47 million q/q and US$130 million y/y . And despite this minor increase in the net debt, the higher 12-month rolling Adjusted EBITDA permitted to maintain the net leverage ratio at 1.2x.

In terms of financing, in addition to the local bond issuance in early January for an amount of US$300 million, the Company also tapped local trade facilities lines for an approximate amount of US$160 million. More recently, in April, the company tapped again the local capital market for a total amount of US$200 million, by issuing a dollar-denominated 4-year bond, with an interest of 1%, for an amount of US$37 million, a dollar-denominated 2-year bond, with an implied yield to maturity of -5,2%, for an amount of US$147 million, and a re-opening of a peso-denominated bond with variable interest rate for an amount equivalent to US$15 million.

Furthermore, in February 2023, the Company signed a committed syndicated credit line with three local banks for an equivalent amount of US$120 million, with an availability period of up to one year.

Regarding our maturity profile, the Company faces debt maturities for the next twelve months totaling an amount of US$1.002 million, mainly consisting international bonds amortizations (having already paid US$303 million between March and April for the amortizations of Notes due 2024 and March 2025), and US$150 million on amortizations of the A/B Loan with CAF, the remaining being trade facilities, local bonds and other financial loans.

 

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The following chart shows the consolidated principal debt maturity profile of the company as of March 31st, 2023, expressed in millions of dollars:

 

 

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6. TABLES AND NOTES

6.1. CONSOLIDATED INCOME STATEMENT

 

Income Statement Unaudited Figures, in US$ million		1Q22				4Q22				1Q23				Y/Y Δ				Q/Q Δ
Revenues			3,760				4,645				4,238				12.7	%			-8.8	%
Costs			(2,821	)			(3,701	)			(3,299	)			16.9	%			-10.9	%
Gross profit			939				944				939				0.0	%			-0.5	%
Selling expenses			(377	)			(452	)			(420	)			11.4	%			-7.1	%
Administrative expenses			(137	)			(198	)			(157	)			14.6	%			-20.7	%
Exploration expenses			(10	)			(23	)			(18	)			80.0	%			-21.7	%
Impairment of property, plant and equipment and intangible assets			—				(25	)			—				N/A				N/A
Other operating results, net			(11	)			196				(9	)			-18.2	%			N/A
Operating income			404				442				335				-17.1	%			-24.2	%
Income of interests in companies and joint ventures			115				58				89				-22.6	%			53.4	%
Financial Income			297				804				601				102.4	%			-25.2	%
Financial Cost			(410	)			(773	)			(710	)			73.2	%			-8.2	%
Other financial results			58				89				111				91.4	%			24.7	%
Financial results, net			(55	)			120				2				N/A				-98.3	%
Net profit before income tax			464				620				426				-8.2	%			-31.3	%
Income tax			(197	)			(156	)			(85	)			-56.9	%			-45.5	%
Net profit for the period			267				464				341				27.7	%			-26.5	%
Net profit for shareholders of the parent company			269				465				341				26.8	%			-26.7	%
Net profits for non-controlling interest			(2	)			(1	)			—				N/A				N/A
Earnings per share attributable to shareholders of the parent company (basic and diluted)			0.68				1.19				0.87				27.9	%			-26.9	%

 

Note:

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

 

Income Statement Unaudited Figures, in AR$ million		1Q22				4Q22				1Q23				Y/Y Δ				Q/Q Δ
Revenues			401.451				786.493				820.325				104,3	%			4,3	%
Costs			(303.142	)			(640.604	)			(646.516	)			113,3	%			0,9	%
Gross profit			98.309				145.889				173.809				76,8	%			19,1	%
Selling expenses			(40.506	)			(78.126	)			(82.750	)			104,3	%			5,9	%
Administrative expenses			(14.774	)			(33.838	)			(30.970	)			109,6	%			-8,5	%
Exploration expenses			(1.123	)			(3.858	)			(3.698	)			229,3	%			-4,1	%
Impairment of property, plant and equipment and intangible assets			—				(4.319	)			—				N/A				N/A
Other operating results, net			(1.457	)			35.651				(1.435	)			-1,5	%			N/A
Operating income			40.449				61.399				54.956				35,9	%			-10,5	%
Income of interests in companies and joint ventures			12.229				11.350				16.946				38,6	%			49,3	%
Financial Income			32.110				134.679				116.187				261,8	%			-13,7	%
Financial Cost			(43.037	)			(128.633	)			(135.742	)			215,4	%			5,5	%
Other financial results			6.332				25.496				24.007				279,1	%			-5,8	%
Financial results, net			(4.595	)			31.542				4.452				N/A				-85,9	%
Net profit before income tax			48.083				104.291				76.354				58,8	%			-26,8	%
Income tax			(21.666	)			(26.689	)			(17.754	)			-18,1	%			-33,5	%
Net profit for the period			26.417				77.602				58.600				121,8	%			-24,5	%
Net profit for shareholders of the parent company			26.603				77.471				58.566				120,1	%			-24,4	%
Net profits for non-controlling interest			(186	)			131				34				N/A				-74,0	%
Earnings per share attributable to shareholders of the parent company (basic and diluted)			67,69				197,79				149,60				121.0	%			-24.4	%

 

Note:

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

 

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6.2. CONSOLIDATED BALANCE SHEET

 

Consolidated Balance Sheet		In US$ million								In AR$ million
Unaudited Figures		31-Dec-22				31-Mar-23				31-Dec-22				31-Mar-23
Non-current Assets
Intangible assets			384				379				68,052				79,182
Properties, plant and equipment			17,510				18,041				3,100,306				3,767,050
Assets for leasing			541				539				95,748				112,591
Investments in companies and joint ventures			1,905				1,804				337,175				376,546
Deferred tax assets, net			17				16				3,010				3,341
Other receivables			205				206				36,468				43,202
Trade receivables			6				5				1,027				1,101
Investment in financial assets			201				168				35,664				35,015
Total Non-current Assets			20,769				21,158				3,677,450				4,418,028
Current Assets
Assets held for disposal			0				0				0				0
Inventories			1,738				1,865				307,766				389,389
Contract assets			1				9				148				1,874
Other receivables			808				644				143,231				134,489
Trade receivables			1,504				1,320				266,201				275,518
Investment in financial assets			319				282				56,489				58,878
Cash and cash equivalents			773				1,014				136,874				211,905
Total Current Assets			5,143				5,134				910,709				1,072,053
Total Assets			25,912				26,292				4,588,159				5,490,081
Total Shareholders´ Equity			10,552				10,910				1,868,304				2,278,274
Non-current Liabilities
Provisions			2,571				2,163				455,213				451,578
Deferred tax liabilities, net			1,733				1,582				306,708				330,402
Income tax payable			26				21				4,588				4,318
Other taxes payable			1				1				185				177
Salaries and social security			1				2				215				437
Liabilities from leasing			272				267				48,224				55,850
Loans			5,948				6,231				1,053,196				1,301,199
Other liabilities			19				99				3,302				20,737
Accounts payable			6				7				1,319				1,492
Total non-current Liabilities			10,577				10,373				1,872,950				2,166,190
Current Liabilities
Provisions			199				493				34,981				102,946
Contract liabilities			77				95				13,577				19,683
Income tax payable			27				26				4,711				5,376
Other taxes payable			173				148				30,660				30,648
Salaries and social security			297				212				52,622				44,250
Liabilities from leasing			294				298				52,061				62,226
Loans			1,140				1,108				201,808				231,479
Other liabilities			12				56				2,359				11,743
Accounts payable			2,564				2,573				454,126				537,266
Total Current Liabilities			4,783				5,009				846,905				1,045,617
Total Liabilities			15,360				15,382				2,719,855				3,211,807
Total Liabilities and Shareholders’ Equity			25,912				26,292				4,588,159				5,490,081

 

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6.3. CONSOLIDATED CASH FLOW STATEMENT

 

Cash Flow Statement Unaudited Figures, in US$ million		1Q22				4Q22				1Q23				Y/Y Δ				Q/Q Δ
Operating activities
Net income			267				464				341				27.7	%			-26.5	%
Income of interests in companies and joint ventures			(115	)			(58	)			(89	)			-22.6	%			53.4	%
Depreciation of property, plant and equipment			589				676				709				20.4	%			4.9	%
Depreciation of the right-of-use assets			51				58				56				9.8	%			-3.4	%
Amortization of intangible assets			11				10				10				-9.1	%			0.0	%
Losses of property, plant and equipment and intangible assets and consumption of materials			87				75				84				-3.4	%			12.0	%
Income tax charge			197				156				85				-56.9	%			-45.5	%
Net increase in provisions			70				(112	)			99				41.4	%			N/A
Impairment of property, plant and equipment and intangible assets			—				25				—				N/A				N/A
Stock compensation plans			—				7				4				N/A				-42.9	%
Accrued insurance			—				—				—				N/A				N/A
Results from exchange of debt instruments			—				—				—				N/A				N/A
Results for assignment of participation in areas			—				—				—				N/A				N/A
Results from sales of assets held for disposal			—				—				—				N/A				N/A
Results from exchange of financial instruments			—				—				—				N/A				N/A
Changes in Assets and Liabilities & Others			272				30				198				-27.2	%			560.0	%
Net cash flow from operating activities			1,429				1,331				1,497				4.8	%			12.5	%
Investing activities
Acquisitions of property, plant and equipment and intangible assets			(797	)			(1,314	)			(1,262	)			58.3	%			-4.0	%
Contributions and acquisitions of interests in companies and joint ventures			—				(2	)			(2	)			N/A				0.0	%
Loans with related parties, net			—				(18	)			—				N/A				N/A
Proceeds from sales of financial assets			38				241				128				236.8	%			-46.9	%
Payments for the acquisition of financial assets			(86	)			(96	)			(82	)			-4.7	%			-14.6	%
Interest received from financial assets			—				53				27				N/A				-49.1	%
Collection for participation in areas and sale of assets			2				6				2				0.0	%			-66.7	%
Net cash flow from investing activities			(843	)			(1,130	)			(1,189	)			41.0	%			5.2	%
Financing activities
Payment of loans			(447	)			(52	)			(133	)			-70.2	%			155.8	%
Payment of interests			(173	)			(75	)			(157	)			-9.2	%			109.3	%
Proceeds from loans			345				16				472				36.8	%			2850.0	%
Account overdraft, net			(8	)			72				(70	)			775.0	%			N/A
Acquisition of own shares			—				(23	)			—				N/A				N/A
Payment of leasing			(82	)			(90	)			(92	)			12.2	%			2.2	%
Payment of interests related to income tax			—				(3	)			(3	)			N/A				0.0	%
Net cash flow from financing activities			(365	)			(155	)			17				N/A				N/A
Effect of changes in exchange rates on cash and cash equivalents			(37	)			(107	)			(84	)			127.0	%			-21.5	%
Translation adjustments			—				—				—				N/A				N/A
Increase (decrease) in cash and cash equivalents			184				(61	)			241				31.0	%			N/A
Cash and cash equivalents at the beginning of the period			611				834				773				26.5	%			-7.3	%
Cash and cash equivalents at the end of the period			795				773				1,014				27.5	%			31.2	%

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

 

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Cash Flow Statement Unaudited Figures, in AR$ million		1Q22				4Q22				1Q23				Y/Y Δ				Q/Q Δ
Operating activities
Net income			26,417				77,602				58,600				121.8	%			-24.5	%
Income of interests in companies and joint ventures			(12,229	)			(11,350	)			(16,946	)			38.6	%			49.3	%
Depreciation of property, plant and equipment			62,809				111,081				136,950				118.0	%			23.3	%
Depreciation of the right-of-use assets			5,391				9,390				10,703				98.5	%			14.0	%
Amortization of intangible assets			1,182				1,957				1,921				62.5	%			-1.8	%
Losses of property, plant and equipment and intangible assets and consumption of materials			9,103				12,184				16,090				76.8	%			32.1	%
Income tax charge			21,666				26,689				17,754				-18.1	%			-33.5	%
Net increase in provisions			7,653				(21,711	)			20,064				162.2	%			N/A
Impairment of property, plant and equipment and intangible assets			—				4,319				—				N/A				N/A
Stock compensation plans			53				474				732				1281.1	%			54.4	%
Accrued insurance			—				—				—				N/A				N/A
Results from exchange of debt instruments			—				—				—				N/A				N/A
Results for assignment of participation in areas			—				—				—				N/A				N/A
Results from sales of assets held for disposal			—				—				—				N/A				N/A
Results from exchange of financial instruments			—				—				—				N/A				N/A
Changes in Assets and Liabilities & Others			30,586				1,125				49,778				62.7	%			4324.7	%
Net cash flow from operating activities			152,631				211,760				295,646				93.7	%			39.6	%
Investing activities
Acquisitions of property, plant and equipment and intangible assets			(83,629	)			(209,516	)			(247,158	)			195.5	%			18.0	%
Contributions and acquisitions of interests in companies and joint ventures			—				(230	)			(396	)			N/A				72.2	%
Loans with related parties, net			—				(2,891	)			—				N/A				N/A
Proceeds from sales of financial assets			3,473				40,970				24,859				615.8	%			-39.3	%
Payments for the acquisition of financial assets			(9,409	)			(15,662	)			(15,871	)			68.7	%			1.3	%
Interest received from financial assets			89				7,954				5,110				5641.6	%			-35.8	%
Collection for participation in areas and sale of assets			177				317				367				107.3	%			15.8	%
Net cash flow from investing activities			(89,299	)			(179,058	)			(233,089	)			161.0	%			30.2	%
Financing activities
Payment of loans			(48,747	)			(9,402	)			(26,084	)			-46.5	%			177.4	%
Payment of interests			(18,474	)			(14,983	)			(29,915	)			61.9	%			99.7	%
Proceeds from loans			37,730				4,197				88,027				133.3	%			1997.4	%
Account overdraft, net			(794	)			12,487				(12,487	)			1472.7	%			N/A
Acquisition of own shares			—				(3,396	)			—				N/A				N/A
Payment of leasing			(9,075	)			(13,830	)			(17,694	)			95.0	%			27.9	%
Payment of interests related to income tax			(47	)			(554	)			(551	)			1072.3	%			-0.5	%
Net cash flow from financing activities			(39,407	)			(25,481	)			1,296				N/A				N/A
Effect of changes in exchange rates on cash and cash equivalents			1,607				6,860				11,178				595.6	%			62.9	%
Increase (decrease) in cash and cash equivalents			25,532				14,081				75,031				193.9	%			432.9	%
Cash and cash equivalents at the beginning of the period			62,678				122,793				136,874				118.4	%			11.5	%
Cash and cash equivalents at the end of the period			88,210				136,874				211,905				140.2	%			54.8	%

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

 

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6.4. MAIN PHYSICAL MAGNITUDES

 

Main physical magnitudes Unaudited Figures		Unit		1Q22				2Q22				3Q22				4Q22				Cum. 2022				1Q23
Total Production		Kboe			45,523				45,836				46,406				45,924				183,690				45,956
Crude oil production		Kbbl			19,993				20,506				20,680				21,325				82,503				21,461
NGL production		Kbbl			3,979				3,796				3,496				3,915				15,186				3,859
Gas production		Mm3			3,427				3,424				3,535				3,289				13,674				3,281
Henry Hub		USD/MMBTU			4.6				7.5				6.8				4.5				6.2				2.2
Brent		USD/bbl			97.4				111.9				97.8				88.6				98.9				82.2
Sales volume (YPF stand alone)
Sales of refined products		Km3			4,565				4,782				4,896				4,912				19,155				4,790
Domestic market		Km3			4,209				4,455				4,536				4,431				17,631				4,346
Gasoline		Km3			1,410				1,364				1,419				1,487				5,680				1,515
Diesel		Km3			2,030				2,284				2,288				2,181				8,783				2,052
Jet fuel and kerosene		Km3			124				115				129				151				519				140
Fuel Oil		Km3			4				13				21				4				42				4
LPG		Km3			243				305				298				245				1,092				230
Other (*)		Km3			398				374				379				363				1,515				407
Export market		Km3			356				327				360				482				1,524				444
Petrochemical naphtha		Km3			15				52				60				23				151				20
Jet fuel and kerosene		Km3			74				81				89				110				353				117
LPG		Km3			124				28				73				164				389				133
Bunker (Diesel and Fuel Oil)		Km3			94				67				51				91				302				95
Other (*)		Km3			49				100				87				93				329				78
Sales of petrochemical products		Ktn			129				139				115				116				498				141
Domestic market		Ktn			99				111				90				95				396				83
Methanol		Ktn			68				76				54				55				252				45
Other		Ktn			32				35				37				40				143				38
Export market		Ktn			30				27				25				21				103				58
Methanol		Ktn			6				7				4				2				20				40
Other		Ktn			23				21				20				19				83				18
Grain, flours and oils		Ktn			271				517				449				270				1,507				100
Domestic market		Ktn			7				39				50				178				275				91
Export market		Ktn			264				478				398				92				1,232				9
Fertilizers		Ktn			104				166				242				228				741				115
Domestic market		Ktn			104				166				242				228				741				115
Main products imported (YPF stand alone)
Gasolines		Km3			122				40				49				92				303				142
Jet Fuel		Km3			2				0				1				3				7				4
Diesel		Km3			318				255				448				229				1,251				288

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

 

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

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

YPF’s actual future financial condition, financial, operating, reserve replacement and other ratios, results of operations, business strategy, geographic concentration, business concentration, production and marketed volumes, reserves, capital expenditures, investments, expansion and other projects, exploration activities, ownership interests, divestments, cost savings and dividend payout policies, as well as actual future economic and other conditions, such as the future price of petroleum and petroleum products, refining margins and exchange rates, could differ materially from those expressed or implied in any such forward-looking statements. Important factors that could cause such differences include, but are not limited to fluctuations in the price of petroleum and petroleum products, supply and demand levels, currency fluctuations, exploration, drilling and production results, changes in reserves estimates, success in partnering with third parties, loss of market share, industry competition, environmental risks, physical risks, the risks of doing business in developing countries, legislative, tax, legal and regulatory developments, economic and financial market conditions in various countries and regions, political risks, wars and acts of terrorism, natural disasters, project delays or advancements and lack of approvals, as well as those factors described in the filings made by YPF and its affiliates before the Comisión Nacional de Valores in Argentina and with the U.S. Securities and Exchange Commission, in particular, those described in “Item 3. Key Information—Risk Factors” and “Item 5. Operating and Financial Review and Prospects” in YPF’s Annual Report on Form 20-F for the fiscal year ended December 31, 2022 filed with the Securities and Exchange Commission. In light of the foregoing, the forward-looking statements included in this document may not occur.

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

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

 

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SIGNATURE

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

 

				YPF Sociedad Anónima
Date: May 11, 2023				By:		/s/ Pablo Calderone
				Name:		Pablo Calderone
				Title:		Market Relations Officer