6-K 1 d113016d6k.htm FORM 6-K Form 6-K
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UNITED STATES

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, 2021

Commission File Number: 001-12102

 

 

YPF Sociedad Anónima

(Exact name of registrant as specified in its charter)

 

 

Macacha Güemes 515

C1106BKK Buenos Aires, Argentina

(Address of principal executive office)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

Form 20-F  ☒            Form 40-F  ☐

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

Yes  ☐            No  ☒

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

Yes  ☐            No  ☒

 

 

 


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Basis of Presentation

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

Solid start of the year, leveraging on stronger fuels’ demand, better pricing environment, and the materialization of cost efficiencies.

 

Summary Consolidated Financials

Unaudited Figures, in US$ million

   1Q20      4Q20      1Q21      Q/Q D  

Revenues

     2,832        2,270        2,648        16.6

EBITDA

     1,040        263        825        N.M  

Adjusted EBITDA

     851        183        767        N.M  

Operating income before impairment of assets

     241        (273      78        N.M  

Operating income

     241        549        78        -85.9

Net income before impairment of assets

     103        (78      (25      -67.4

Net income

     103        539        (25      N.M  

EPS

     0.26        1.41        (0.06      N.M  

Capex

     598        538        487        -9.4

FCF

     (85      182        284        56.0

Cash and cash equivalents

     1,159        994        995        0.1

Total debt

     8,799        8,070        7,747        -4.0

EBITDA = Operating income + Depreciation of property, plant and equipment + Depreciation of the right of use assets + Amortization of intangible assets + Unproductive exploratory drillings + (Reversal) / Deterioration of property, plant, and equipment. Adjusted EBITDA = EBITDA that excludes IFRS 16 and IAS 29 effects +/- one-off items. EPS attributable to shareholders of the parent company (basic and diluted). FCF = Cash flow from Operations less capex (Investing activities), M&A (Investing activities), and interest and leasing payments (Financing activities).

1. MAIN HIGHLIGHTS OF THE QUARTER

 

   

Strong recovery in profitability with Adjusted EBITDA expanding by 318% sequentially—and only 9.9% below 1Q20 -, mainly backed by a fast recovery in demand for gasoline and diesel, higher realization prices across the board and the materialization of cost efficiencies.

 

   

Local demand for our main refined products (gasoline and diesel) improved beyond expectations increasing 5.5% q/q and 3.6% y/y, but not yet back to pre-COVID levels remaining 5.7% below 1Q19.

 

   

Prices at the pump continued recovering in dollar terms with a sequential increase in the realization price of 10.3% on average for gasoline and diesel, which permitted to pass-through the increases in biofuels’ costs and fuels’ taxes, while also leaving some room for a recovery in our margin.

 

   

Structural cost efficiencies continued to materialize on the back of the company-wide cost cutting plan implemented throughout 2020. OPEX declined 21.5% y/y with positive results on all our business segments.

 

   

Activity in our upstream operations was fully resumed reaching a new record in the number of horizontal wells completed in a quarter, totaling 34 between oil and gas wells within the unconventional segment, out of a total of 48 wells completed throughout all of our operated fields.

 

   

Oil and gas production expanded 3.3% sequentially, including a 4.3% increase in crude oil production to 207.7 Kbbld, with a remarkable 19.7% jump in shale oil production backed by our core hub where output reached its record high in March at 42.0 Kbbld.

 

   

Free cash flow ended in positive territory, allowing us to further reduce our net debt which declined by US$324 million to US$6,752 million by the end of the quarter – or US$888 million below 1Q20.

 

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2. ANALYSIS OF CONSOLIDATED RESULTS

 

Consolidated Revenues Breakdown

Unaudited Figures, in US$ million

   1Q20      4Q20      1Q21      Y/Y D  

Diesel

     996        826        921        -7.5

Gasoline

     669        494        613        -8.4

Natural gas as producers (third parties)

     265        225        259        -2.0

Other

     503        503        552        9.7
  

 

 

    

 

 

    

 

 

    

 

 

 

Total Domestic Market

     2,433        2,047        2,346        -3.6
  

 

 

    

 

 

    

 

 

    

 

 

 

Jet fuel

     102        11        24        -76.4

Grain and flours

     61        78        114        85.1

Crude oil

     8        47        6        -28.1

Petchem & Other

     227        86        158        -30.4
  

 

 

    

 

 

    

 

 

    

 

 

 

Total Export Market

     399        223        302        -24.4
  

 

 

    

 

 

    

 

 

    

 

 

 

Total Revenues

     2,832        2,270        2,648        -6.5
  

 

 

    

 

 

    

 

 

    

 

 

 

Revenues for 1Q21, which amounted to US$2,648 million, showed a sound recovery on a sequential basis, increasing 16.6% on both higher domestic and export sales driven by a general increase in volumes and prices. In particular, we highlight the higher revenues of diesel and gasoline, up 11.5% and 24.2%, respectively, on both higher volumes and higher prices in dollars, as cumulative increases at the pump more than compensated higher fuel taxes and the devaluation of the currency. In addition, prices for natural gas were also higher on the back of the new Plan GasAR driving a 15.3% increase in natural gas revenues as producers sold to third parties in the local market.

On a year ago basis, revenues decreased 6.5% – 1Q20 being affected by the pandemic for less than two weeks – primarily on lower average prices in dollar terms, while demand for gasoline and diesel were 3.6% y/y higher in 1Q21, on more flexible mobility restrictions. It is worth noting that demand in 1Q21 lagged 1Q19 (pandemic-free) by only 5.7%.

Diesel revenues – 35% of our total sales – decreased 7.5% y/y due to lower prices (-12.5%) partially offset by increasing volumes sold (5.2%). Gasoline sales – 23% of total revenues – followed the same trend and decreased by 8.4% also on lower prices (-10.3%) offset by higher volumes sold (1.4%).

Natural gas revenues as producers sold to third parties in the local market – 10% of consolidated sales – went down 2.0% y/y due to a reduction in volumes, despite the better pricing as 1Q21 was the first quarter under the new Plan GasAR.

Other domestic sales in 1Q21, increased 9.7% y/y mainly on higher sales of fuel oil, fertilizers, asphalts, LPG, lubricants and virgin naphtha more than offset lower sales of jet fuel and crude oil.

Export revenues decreased 24.4% y/y on lower sales of jet fuel, natural gas, fuel oil, diesel and virgin naphtha, due to lower volumes sold in most of these products. This was partially offset by higher sales of grain and flours, and petrochemical products.

 

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Consolidated Costs Breakdown

Unaudited Figures, in US$ million

   1Q20      4Q20      1Q21      Y/Y D  

Depreciation

     (679      (430      (652      -3.9

Lifting cost

     (524      (413      (411      -21.5

Royalties

     (184      (141      (171      -7.0

Refining cost

     (114      (113      (106      -6.6

Other

     (328      (274      (203      -37.9
  

 

 

    

 

 

    

 

 

    

 

 

 

Total Production Costs

     (1,828      (1,371      (1,544      -15.5
  

 

 

    

 

 

    

 

 

    

 

 

 

Fuels imports

     (97      (30      (75      -23.1

Crude oil purchases to third parties

     (238      (173      (252      6.1

Biofuel purchases

     (161      (50      (108      -32.6

Natural gas purchases to third parties

     (50      (40      (32      -36.4

Other

     (171      (232      (252      47.6
  

 

 

    

 

 

    

 

 

    

 

 

 

Total Purchases

     (717      (526      (719      0.3
  

 

 

    

 

 

    

 

 

    

 

 

 

Stock variations

     178        (179      25        -85.9
  

 

 

    

 

 

    

 

 

    

 

 

 

Total Operating Costs

     (2,366      (2,076      (2,238      -5.4
  

 

 

    

 

 

    

 

 

    

 

 

 

Selling expenses

     (225      (224      (225      -0.1

Administrative expenses

     (109      (135      (103      -6.1

Exploration expenses

     (12      (10      (2      -84.5

Other operating results, net

     120        (99      (3      N.M  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total Other Expenses

     (225      (467      (332      47.3
  

 

 

    

 

 

    

 

 

    

 

 

 

Impairment of assets

     —          822        —          N.M  
  

 

 

    

 

 

    

 

 

    

 

 

 

Operating Costs + Other Expenses + Impairment of Assets

     (2,592      (1,721      (2,570      -0.8
  

 

 

    

 

 

    

 

 

    

 

 

 

Stock variations include holding results of US$63 million in 1Q20, US$(40) million in 4Q20 and US$66 million for 1Q21.

Total Operating Costs were US$2,238 million, contracting 5.4% y/y driven primarily by efficiencies in operating expenses other than purchases, royalties and depreciation, on the back of the company wide cost-cutting program that we went through during 2020.

Within production costs, which decreased 15.5% y/y, the lifting cost reduction of 21.5% y/y was mainly influenced by cost-efficiencies, partially compensated with increased well activity on the back of the gradual resumption in activity, royalties went down by 7.0% y/y due to the lower production, and transportation cost (included in the “Other” category) contracted 28.9% y/y primarily on lower tariffs based on the renegotiation of contracts with suppliers.

Depreciation decreased 3.9% mainly due to the decrease in our capex program during last year, which affected the accounting value of the assets subject to depreciation when comparing to the same period of 2020.

Refining cost decreased 6.6% y/y mainly motivated by lower charges related to repair and maintenance, electricity and other supplies, personnel expenses, and consumption of materials and spare parts.

As regards to purchases, a category highly correlated with demand levels for refined products, it remained stable y/y, increasing just 0.3%, driven by:

 

   

A reduction in fuel imports of 23.1% mainly driven by a decrease of 47.6% for diesel and 58.0% for jet fuel on lower volumes, partially offset by higher purchases of premium gasoline (62.5%) due to higher volumes;

 

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Biofuel purchases reported a reduction of 32.6% mainly due to lower purchases of biodiesel (-63.4%) driven by lower volumes acquired despite higher prices, that more than offset the increase in bioethanol purchases (5.6%) driven by higher prices;

 

   

Lower purchases of natural gas from other producers for resale in the retail distribution segment (residential customers and small businesses) and to large customers (power plants and industries) mainly due to lower volumes (-15.4%);

 

   

These effects were partially offset by an increase in crude oil purchases from third parties as prices and volumes had expanded by 2.3% and 3.6%, respectively;

 

   

An increase in purchases of fertilizers and grain receipts in the agricultural sales segment through the form of barter (included in the “Other” category) of 76.2% and 37.7%, respectively, mainly due to higher prices of these products.

During 1Q21, a positive stock variation of US$25 million was recorded, mainly due to an increase in the cost of the company’s inventories, partially offset by a consumption of inventories. In 1Q20, this category was also positive by US$178 million, as a result of an increase in inventory’s levels and their related cost.

In 1Q21 selling expenses stood stable at US$225 million mainly since the higher export taxes, due to an increase in agricultural exports, offset the lower product transportation charges (as within the cost-cutting program we renegotiated lower rates for domestic fuel transport in dollars) and personnel expenses.

Administrative expenses dropped by 6.1% y/y mainly driven by cost efficiencies and lower personnel expenses due to the voluntary retirement program executed in 2020.

The other operating results, net, in 1Q21 were negative by US$3 million compared to the positive US$120 million recorded in 1Q20 mainly explained by the acceleration of promote of Schlumberger’s stake in Bandurria Sur for US$104 million in January 2020.

 

Consolidated Net Income Breakdown

Unaudited Figures, in US$ million

   1Q20      4Q20      1Q21      Y/Y D  

Operating income

     241        549        78        -67.7
  

 

 

    

 

 

    

 

 

    

 

 

 

Interests in companies and joint ventures

     22        56        58        N.M  

Financial results, net

     (172      24        (49      -71.7

Income tax

     12        (90      (112      N.M  
  

 

 

    

 

 

    

 

 

    

 

 

 

Net Income

     103        539        (25      N.M  
  

 

 

    

 

 

    

 

 

    

 

 

 

Net Income before impairment of assets

     103        (78      (25      N.M  
  

 

 

    

 

 

    

 

 

    

 

 

 

Financial results, net, for 1Q21 represented a loss of US$49 million compared to the US$172 million loss posted in 1Q20, mainly driven by a 18.9% y/y decrease in net interest expense to US$194 million during 1Q21, as a result of a lower average debt compared to the same period of 2020. Also, a positive charge of US$17 million was recorded during 1Q21 for the valuation at fair value of financial assets compared to a negative charge of US$44 million in 1Q20. In contrast, net FX results were US$13 million lower y/y (US$99 million in 1Q21 versus US$112 million in 1Q20), mainly related to the impact that the devaluation had on our net liabilities.

As a whole, net income for the quarter represented a loss of US$25 million, compared to a gain of US$103 million over the same period of 2020.

 

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3. EBITDA AND ADJUSTED EBITDA RECONCILIATION

 

Reconciliation of Adjusted EBITDA

Unaudited Figures, in US$ million

   1Q20      4Q20      1Q21      Y/Y D  

Net Income

     103        539        (25      N.M  

Financial results, net

     172        (24      49        -71.7

Interests in companies and joint ventures

     (22      (56      (58      N.M  

Income tax

     (12      90        112        N.M  

Unproductive exploratory drillings

     0        0        —          -100.0

Depreciation & amortization

     799        535        747        -6.4

Impairment of assets

     —          (822      —          N.M  
  

 

 

    

 

 

    

 

 

    

 

 

 

EBITDA

     1,040        263        825        -20.7
  

 

 

    

 

 

    

 

 

    

 

 

 

Leasing

     (85      (80      (61      -28.3

Other adjustments

     (105      1        2        N.M  
  

 

 

    

 

 

    

 

 

    

 

 

 

Adjusted EBITDA

     851        183        767        -9.9
  

 

 

    

 

 

    

 

 

    

 

 

 

Adjusted EBITDA increased 318% q/q, resulting in a much smaller gap with 1Q20 at -9.9%. The y/y difference mainly resulted from lower prices in dollars of our main products, diesel and gasoline, in addition to the lower output for our upstream operations, partially offset by a higher diesel and gasoline volumes dispatched, and the materialization of cost efficiencies. Sequentially, the increase was backed by the fast recovery in demand for our main products, higher average prices in dollar terms, and the results of our company wide cost-cutting program. It is worth noting that Adjusted EBITDA margin reached 29%, back in line with historical levels.

The Adjusted EBITDA calculation include or exclude several items that can be considered infrequent which are the following.

 

   

1Q21: Includes stand-by costs for US$29 million.

 

   

4Q20: Includes, primarily, stand-by costs for US$38 million, charges related to the Voluntary Retirement Program for US$40 million, and a US$118 million loss related to the early termination of the Floating LNG contract.

 

   

1Q20: Includes stand-by costs for US$17 million, and excludes the recognition of the acceleration of the promote of Schlumberger’s stake in Bandurria Sur for US$104 million.

The reconciliation for each one of our segments between EBITDA and Adjusted EBITDA for 1Q21 is presented in the table below.

 

EBITDA breadkdown by segment

Unaudited Figures, in US$ million

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

Operating income

     19       199       (31     (42     (66     78  

Depreciation & amortization

     581       134       12       19       —         747  

Unproductive exploratory drillings

     —         —         —         —         —         —    

Impairment of assets

     —         —         —         —         —         —    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA

     600       333       (19     (22     (66     825  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Leasing

     (39     (16     (6     —         —         (61

Other adjustments

     0       1       2       (1     —         2  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

     561       317       (23     (23     (66     767  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

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4. ANALYSIS OF RESULTS BY BUSINESS SEGMENT

4.1. UPSTREAM

 

Upstream Financials

Unaudited Figures, in US$ million

   1Q20      4Q20      1Q21      Y/Y D  

Crude oil

     1,008        740        950        -5.7

Natural gas

     318        244        285        -10.3

Other

     (10      (9      12        N.M  
  

 

 

    

 

 

    

 

 

    

 

 

 

Revenues

     1,317        975        1,247        -5.2
  

 

 

    

 

 

    

 

 

    

 

 

 

Depreciation

     (573      (327      (550      -4.0

Lifting cost

     (524      (413      (411      -21.5

Royalties

     (184      (141      (171      -7.0

Exploration expenses

     (12      (9      (2      -84.9

Other

     (13      (158      (95      N.M  
  

 

 

    

 

 

    

 

 

    

 

 

 

Operating income before impairment of assets

     11        (73      19        69.1
  

 

 

    

 

 

    

 

 

    

 

 

 

Impairment of assets

     —          828        —          N.M  
  

 

 

    

 

 

    

 

 

    

 

 

 

Operating income

     11        755        19        69.1
  

 

 

    

 

 

    

 

 

    

 

 

 

Depreciation & amortization

     616        356        581        -5.7

Unproductive exploratory drillings

     0        0        —          -100.0

Impairment of assets

     —          (828      —          N.M  
  

 

 

    

 

 

    

 

 

    

 

 

 

EBITDA

     628        283        600        -4.4
  

 

 

    

 

 

    

 

 

    

 

 

 

Leasing

     (39      (33      (39      -0.3

Other adjustments

     (104      (0      0        N.M  
  

 

 

    

 

 

    

 

 

    

 

 

 

Adjusted EBITDA

     485        250        561        15.7
  

 

 

    

 

 

    

 

 

    

 

 

 

Capex

     477        362        425        -10.9
  

 

 

    

 

 

    

 

 

    

 

 

 

Revenues decreased by a slight 5.2% compared to 1Q20, reaching US$1,247 million, but experienced a 28.0% sequential expansion. The reason behind the y/y performance was a reduction in both crude oil and natural gas production, partially offset by higher prices for both crude oil and gas. As a result, crude oil revenues decreased 5.7% y/y as production contracted by 7.8% y/y, despite the 3.1% y/y recovery in prices in dollars. For natural gas, revenues declined 10.3% y/y as output went down by 16.8% but was partially offset by higher prices of 4.5% supported by the new Plan GasAR. Sequentially, revenues increased 28.0%, driven by a strong recovery of prices, up 25.2% and 22.8% for crude oil and natural gas, respectively, in addition to higher total production of 3.3% mainly driven by an expansion in our shale oil production.

Operating costs for the period decreased y/y mainly due to the following:

 

   

Lifting costs decreased 21.5% y/y mainly due to the results of our cost-cutting program that allowed us to resume activity in a much more efficient basis, in addition to lower production levels.

 

   

Royalties went down by 7.0% y/y principally due to lower production. Royalties in connection with crude oil decreased 6.8%, while the charge related to natural gas declined by 7.7%.

 

   

Transportation costs (included in the “Other” category) of US$34 million decreased by 29.5% y/y mainly as we renegotiated contracts with service providers and due to lower activity.

 

   

Depreciation decreased 4.0% compared to 1Q21, mainly due to a decrease in our capex program in 2020, which affected the accounting value of the assets subject to depreciation when comparing to the same period of last year.

 

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Exploration expenses decreased 84.9% y/y in relation to 1Q20 mainly due to lower expenses in connection to exploratory studies.

Other costs were negative US$95 million in 1Q21, compared to the negative US$13 million recorded in 1Q20, as the latter includes a positive charge of US$104 million from the acceleration of promote of Schlumberger’s stake in Bandurria Sur – following the acquisition by Shell Compañía Argentina de Petróleo S.A. and Equinor Argentina AS of the entire Schlumberger Oilfield Eastern Ltd (“SPM”) share package in Bandurria Sur in January 2020.

As a result, Adjusted EBITDA reached US$561 million during the quarter, expanding 15.7% y/y and 124.7% q/q.

 

Unit Cash Costs

Unaudited Figures, in US$/boe

   1Q20      4Q20      1Q21      Y/Y D  

Lifting Cost

     11.4        10.6        10.5        -8.0

Royalties and other taxes

     4.7        3.9        4.8        2.8

Other Costs

     1.6        3.3        1.7        5.6
  

 

 

    

 

 

    

 

 

    

 

 

 

Total Cash Costs (US$/boe)

     17.7        17.8        17.0        -3.9
  

 

 

    

 

 

    

 

 

    

 

 

 

In 1Q21, on a per unit basis, our cash costs decreased 3.9% y/y driven by lower lifting costs of 8.0%, due to efficiency gains and the dilution of Peso denominated costs. Sequentially, unit cash costs decreased 4.8% as the higher royalties due to the increase in prices were more than offset by the lower lifting and other cost backed by the consolidation of cost efficiencies.

 

Upstream Operating data

Unaudited Figures

   1Q20      4Q20      1Q21      Y/Y D  

Net Production Breakdown

           
  

 

 

    

 

 

    

 

 

    

 

 

 

Crude Production (Kbbld)

     225.1        199.0        207.7        -7.8
  

 

 

    

 

 

    

 

 

    

 

 

 

Conventional

     178.2        157.1        158.3        -11.2

Shale

     42.3        38.8        46.4        9.6

Tight

     4.6        3.2        3.0        -35.6
  

 

 

    

 

 

    

 

 

    

 

 

 

NGL Production (Kbbld)

     44.9        10.8        29.5        -34.4
  

 

 

    

 

 

    

 

 

    

 

 

 

Conventional

     25.0        7.4        16.3        -34.8

Shale

     16.9        4.1        12.0        -29.0

Tight

     3.1        -0.7        1.2        -61.0
  

 

 

    

 

 

    

 

 

    

 

 

 

Gas Production (Mm3d)

     38.2        33.9        31.8        -16.8
  

 

 

    

 

 

    

 

 

    

 

 

 

Conventional

     20.0        19.0        18.0        -9.9

Shale

     8.8        7.2        6.4        -27.8

Tight

     9.4        7.6        7.4        -21.3
  

 

 

    

 

 

    

 

 

    

 

 

 

Total Production (Kboed)

     510.3        422.8        437.0        -14.4
  

 

 

    

 

 

    

 

 

    

 

 

 

Conventional

     329.0        284.3        288.0        -12.5

Shale

     114.6        88.4        98.4        -14.2

Tight

     66.7        50.2        50.6        -24.1

Average realization prices

           

Crude Oil (USD/bbl)

     48.6        40.0        50.1        3.1

Natural Gas (USD/MMBTU)

     2.8        2.4        2.9        4.5

Natural gas price for 1Q20 has been restated due to the change in the accrual of the Plan Gas and the adjustments for final billing.

Total production for 1Q21 decreased 14.4% y/y to 437.0 Kboed as output was affected by the natural decline of our fields and the lower activity since April 2020 given the measures adopted in response to the pandemic, despite the partial and gradual resumption of activity since mid-3Q20. In this regard, crude oil production declined 7.8%, to 207.7 Kbbld, with a reduction in conventional production of 11.2%, partially offset by an increase in

 

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shale of 9.6%. In turn, natural gas decreased 16.8%, to 31.8 Mm3d mainly driven by the natural decline of our fields. NGL decreased 34.4% y/y following the lower natural gas production, lower processing levels in Mega – due to maintenance works in the Dow Chemical Complex from the end of January until mid- February –, and the reclassification between natural gas and NGL on some non-operated fields explained in the following paragraph.

Sequentially, production expanded 3.3% as a result of the increase in investments and activity, focused on our shale oil core hub. Consequently, crude oil increased by 4.3% driven by a 19.7% increase in shale with production in our core hub (Loma Campana, La Amarga Chica, and Bandurria Sur) reaching its record high in March. The sequential jump in NGL production was due to the reallocation done last quarter on how natural gas and natural gas liquids volumes were recorded for the year 2020 in certain joint operations that are not operated by the company. In contrast, natural gas production contracted 6.2% due to the aforementioned reallocation and the natural decline of the fields.

The realization price of crude oil in 1Q21 increased by 3.1% y/y, and 25.2% q/q to US$50.1/bbl partially reflecting the recovery in international prices. Although the Brent averaged US$61/bbl during the quarter, a transition scheme was agreed between local refiners and producers to set the reference Brent price for local transactions at US$55/bbl. The goal was to smooth out the evolution of crude prices, minimizing volatility and allowing for a gradual pass-through to the pump, leaving room for reasonable margins within the downstream portion of the value chain while, at same time, it should not have an impact in activity as producers’ realized prices, and thus profitability, has improved.

The average price for natural gas for the quarter was US$2.9/MMBTU, increasing 4.5% y/y and 22.8% q/q supported by the new Plan GasAR – this quarter was the first to be fully impacted by the Plan. The price for 1Q21 included US$0.23 of subsidies compared to US$0.12 in 1Q20 and US$0.17 in 4Q20.

CAPEX:

In 1Q21, upstream capex totaled US$425 million, 10.9% lower y/y still affected by the lower level of activity versus the same period of the previous year and delays in execution. On a sequential basis, investments expanded 17.4% due to the gradual resumption of activity.

During 1Q21, activity was mainly focused on shale oil and shale gas, with Loma Campana, La Amarga Chica, Bandurria Sur, and Lindero Atravesado being the main blocks under development for oil, and Rincón del Mangrullo, Aguada de la Arena, La Ribera Block I, Aguada Pichana Oeste and La Calera for natural gas.

For conventional oil, activity was focused on primary recovery and development projects in Manantiales Behr blocks, Seco León, El Trébol, Cañadón Yatel, Las Heras, and Desfiladero Bayo, as well as secondary recovery projects mainly in Los Perales, Barranca Baya and Chihuido Sierra Negra blocks. At the same time, we continued with tertiary recovery projects mainly in Manantiales Behr, Los Perales and Desfiladero Bayo blocks.

Regarding exploration activity in 1Q21, the YPF.SC.AP.xp-19 well was drilled in the Province of Santa Cruz, which is currently awaiting completion.

 

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4.2. DOWNSTREAM

 

Downstream Financials

Unaudited Figures, in US$ million

   1Q20      4Q20      1Q21      Y/Y D  

Diesel

     996        826        921        -7.5

Gasoline

     669        494        613        -8.4

Other domestic market

     331        398        462        39.5

Export market

     357        217        276        -22.6
  

 

 

    

 

 

    

 

 

    

 

 

 

Revenues

     2,353        1,934        2,273        -3.4
  

 

 

    

 

 

    

 

 

    

 

 

 

Depreciation

     (94      (93      (90      -4.6

Refining cost

     (114      (113      (106      -6.6

Fuels imports

     (97      (30      (75      -23.1

Crude oil purchases (intersegment + third parties)

     (1,246      (912      (1,203      -3.5

Biofuel purchases

     (161      (50      (108      -32.6

Other

     (574      (626      (492      -14.3
  

 

 

    

 

 

    

 

 

    

 

 

 

Operating income before impairment of assets

     67        110        199        N.M  
  

 

 

    

 

 

    

 

 

    

 

 

 

Impairment of assets

     —          —          —          N.M  
  

 

 

    

 

 

    

 

 

    

 

 

 

Operating income

     67        110        199        N.M  
  

 

 

    

 

 

    

 

 

    

 

 

 

Depreciation & amortization

     145        147        134        -7.7

Impairment of assets

     —          —          —          N.M  
  

 

 

    

 

 

    

 

 

    

 

 

 

EBITDA

     212        257        333        56.6
  

 

 

    

 

 

    

 

 

    

 

 

 

Leasing

     (26      (25      (16      -38.1

Other adjustments

     0        1        1        62.8
  

 

 

    

 

 

    

 

 

    

 

 

 

Adjusted EBITDA

     187        233        317        69.8
  

 

 

    

 

 

    

 

 

    

 

 

 

Capex

     85        131        51        -39.4
  

 

 

    

 

 

    

 

 

    

 

 

 

Adjusted EBITDA includes holding results from crude oil at transfer price of US$(156) million in 1Q20, US$51 million in 4Q20, and US$108 million in 1Q21.

Revenues decreased 3.4% compared to 1Q20, reaching US$2,273 million mainly driven by lower prices for our main products. While prices contracted, the easing of mobility restrictions during 1Q21 more than offset the combination of pre-pandemic demand levels for January and February 2020 and the large drop seen in March – due to the stringent lockdown measures announced at the beginning of the outbreak –, allowing for an increase in demand for our refined products in the domestic market.

Diesel revenues in 1Q21 – 41% of the segment’s sales – decreased 7.5% y/y due to lower prices in dollars for the diesel mix of 12.5%, partially offset by higher volumes of 5.2%. In the same line, gasoline revenues – 27% of the downstream sales – decreased by 8.4% y/y due to a contraction in prices (-10.3%) partially offset by an expansion in volumes (1.4%). It is worth noting that the mix of premium products improved, with volumes increasing 7.0% and 2.4% for Infinia Diesel (premium diesel) and Nafta Infinia (premium gasoline), respectively. Other sales in the domestic market increased by 39.5% y/y mainly supported by higher sales of fuel oil, petroleum coal, lubricants, fertilizers, LPG, petrochemicals and asphalts, partially offset by lower sales of jet fuel and crude oil.

 

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Export revenues decreased 22.6% y/y driven by a significant reduction in jet fuel demand, lower sales of diesel and virgin naphtha, partially offset by higher sales of grain and flours.

On a sequential basis, revenues increased 17.5% driven by both higher domestic and export sales as volumes and prices of most products expanded following the recovery in international prices and our active pricing strategy at the pump. Gasoline sales jumped 24.2% q/q on a recovery in volumes (14.7%) and prices in dollars (8.9%). On the diesel side, revenues showed the same upward trend increasing 11.5% q/q on higher prices (11.4%) and stable volumes (-0.1%).

Operating costs for the segment decreased y/y mainly due to the following:

 

   

Refining costs decreased by 6.6% mainly motivated by lower charges related to repair and maintenance, electricity and other supplies, personnel expenses, and consumption of materials and spare parts.

 

   

Crude oil purchases decreased by 3.5% driven by lower crude volumes transferred from the Upstream segment (-8.7%), partially offset by higher volumes bought to third parties (3.6%) and higher prices.

 

   

Biofuel purchases decreased by 32.6% due to lower purchases of biodiesel (-63.4%) driven by a contraction in volumes despite a higher price, which more than offset the increase in bioethanol purchases (5.6%) driven by higher prices.

 

   

Fuel imports decreased 23.1%, mainly driven by a decrease of 47.6% for diesel and 58.0% for jet fuel on lower volumes, partially offset by higher purchases of premium gasoline by 62.5% due to higher volumes.

As a result, Adjusted EBITDA reached US$317 million during the quarter, expanding 69.8% y/y. However, when excluding holding results from crude oil at transfer price to better reflect the profitability of the segment, Adjusted EBITDA figure goes down to US$210 million, contracting 38.8% y/y.

 

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Downstream Operating data

Unaudited Figures

   1Q20     4Q20     1Q21     Y/Y D  

Crude processed (Kbbld)

     275.4       238.2       273.4       -0.7

Refinery utilization (%)

     86     75     83     -287 bps 

Sales volume

        
  

 

 

   

 

 

   

 

 

   

 

 

 

Sales of refined products (Km3)

     4,101       4,056       4,140       1.0
  

 

 

   

 

 

   

 

 

   

 

 

 

Total domestic market

     3,541       3,890       3,901       10.2

of which Gasoline

     1,222       1,081       1,240       1.4

of which Diesel

     1,722       1,812       1,811       5.2

Total export market

     561       166       239       -57.4
  

 

 

   

 

 

   

 

 

   

 

 

 

Sales of petrochemical products (Ktn)

     227       152       247       9.1
  

 

 

   

 

 

   

 

 

   

 

 

 

Domestic market

     166       116       166       -0.1

Export market

     61       36       81       34.5
  

 

 

   

 

 

   

 

 

   

 

 

 

Sales of grain, flours and oils (Ktn)

     238       217       294       23.9
  

 

 

   

 

 

   

 

 

   

 

 

 

Domestic market

     33       29       11       -67.2

Export market

     205       189       284       38.6
  

 

 

   

 

 

   

 

 

   

 

 

 

Sales of fertilizers (Ktn)

     91       131       186       N.M  
  

 

 

   

 

 

   

 

 

   

 

 

 

Domestic market

     91       131       186       N.M  

Average prices of fuels in the domestic market

        

Gasoline (USD/m3)

     533       439       478       -10.3

Diesel (USD/m3)

     576       453       504       -12.5

Average domestic prices for gasoline and diesel are net of taxes but include commissions and fuel bonuses. These prices are calculated as total realized revenues divided by volume sold in each period.

Nominal capacity at 328.1kbbl/d in 1Q21.

The crude oil processed during the quarter was 273.4 Kbbld, slightly down 0.7% y/y. 1Q21 utilization was affected by a scheduled stoppage at the La Plata Refinery from the end of February that continued throughout the month of March. Sequentially, the processed crude oil increased 14.8% q/q in line with the recovery in demand.

Average diesel and gasoline prices in dollars in the local market dropped 12.5% y/y and 10.3% y/y, respectively, mainly driven by the devaluation, as in Pesos, there was an y/y increase of 26.7% for the diesel mix and 30.2% for gasoline. Since demand showed signs of recovery, we started with periodic adjustments at the pump since August 2020, which allowed us to stabilize our net prices in dollars, and more recently, recover some margin. In this line, when looking on a sequential basis, average price for the diesel mix increased 11.4% in dollars, with gasoline following the uptrend at 8.9%.

CAPEX:

Downstream capex totaled US$51 million, decreasing 39.4% y/y and 60.8% q/q. During 1Q21, we continued performing engineering developments and equipment purchases for the new diesel and gasoline hydrotreating units to comply with the new fuel specifications under Resolution 576/2019 of the Ministry of Treasury.

At the Luján de Cuyo Refinery, works to modernize the MTBE unit to ETBE continued, with completion estimated for the last quarter of 2021. In the city of Rosario, the construction on the new airplane refueling facility is being completed, which is expected to be inaugurated within the next few months.

 

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Despite the global context, we continued investing to maintain safety conditions for our personnel and the environment in the refining, logistics and dispatch facilities for petroleum products, taking all the necessary precautions to minimize the risk of COVID-19 spreading.

 

4.3. GAS AND POWER

 

Gas & Power Financials

Unaudited Figures, in US$ million

   1Q20      4Q20      1Q21      Y/Y D  

Natural gas as producers (intersegment + third parties)

     308        243        285        -7.4

Natural gas retail segment

     92        82        57        -37.4

Other

     71        16        27        -61.4
  

 

 

    

 

 

    

 

 

    

 

 

 

Revenues

     470        341        370        -21.4
  

 

 

    

 

 

    

 

 

    

 

 

 

Depreciation

     (6      (5      (6      -0.8

Natural gas purchases (intersegment + third parties)

     (325      (247      (288      -11.3

Other

     (158      (219      (107      -32.4
  

 

 

    

 

 

    

 

 

    

 

 

 

Operating income before impairment of assets

     (18      (130      (31      69.9
  

 

 

    

 

 

    

 

 

    

 

 

 

Impairment of assets

     —          (6      —          N.M  
  

 

 

    

 

 

    

 

 

    

 

 

 

Operating income

     (18      (135      (31      69.9
  

 

 

    

 

 

    

 

 

    

 

 

 

Depreciation & amortization

     20        11        12        -39.4

Impairment of assets

     —          6        —          N.M  
  

 

 

    

 

 

    

 

 

    

 

 

 

EBITDA

     2        (119      (19      N.M  
  

 

 

    

 

 

    

 

 

    

 

 

 

Leasing

     (20      (16      (6      -70.5

Other adjustments

     0        (1      2        N.M  
  

 

 

    

 

 

    

 

 

    

 

 

 

Adjusted EBITDA

     (18      (136      (23      29.2
  

 

 

    

 

 

    

 

 

    

 

 

 

Capex

     13        29        4        -70.2
  

 

 

    

 

 

    

 

 

    

 

 

 

Sales of natural gas as producers include domestic and external markets.

Revenues of the segment decreased 21.4% y/y, mainly driven by a 7.4% decrease in sales of natural gas as producers in the local market and abroad – 77% of segment’s sales – given the lower volumes due to the aforementioned contraction in production. This was partially offset by better prices in dollars supported by the new Plan GasAR. Natural gas sales mainly from our controlled company Metrogas S.A. to the retail distribution segment (residential customers and small businesses) and to large customers (power plants and industries) – 16% of segment’s sales – decreased by 37.4% mainly on the back of lower gas sold to power plants and a contraction in the average price perceived through its distribution network due to the lack of tariff updates.

Total operating costs decreased y/y primarily due to a lower figure for purchases of natural gas of (-11.3% y/y) on decreased volumes – volumes transferred from the Upstream segment were down by 15.2%, while the reduction of purchases from third parties was 58.3%.

 

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4.4. CORPORATE AND OTHER

 

Corporate & Other Financials

Unaudited Figures, in US$ million

   1Q20      4Q20      1Q21      Y/Y D  

Revenues

     172        161        144        -16.6
  

 

 

    

 

 

    

 

 

    

 

 

 

Operating costs

     (228      (240      (186      -18.6
  

 

 

    

 

 

    

 

 

    

 

 

 

Operating income before impairment of assets

     (56      (79      (42      -24.8
  

 

 

    

 

 

    

 

 

    

 

 

 

Impairment of assets

     —          (0      —          N.M  

Operating income

     (56      (79      (42      -24.8

Depreciation & amortization

     17        21        19        15.8

Impairment of assets

     —          0        —          N.M  
  

 

 

    

 

 

    

 

 

    

 

 

 

EBITDA

     (39      (58      (22      -42.3
  

 

 

    

 

 

    

 

 

    

 

 

 

Leasing

     (0      (5      —          N.M  

Other adjustments

     (2      1        (1      -69.1
  

 

 

    

 

 

    

 

 

    

 

 

 

Adjusted EBITDA

     (41      (62      (23      -43.4
  

 

 

    

 

 

    

 

 

    

 

 

 

Capex

     23        16        7        -69.9
  

 

 

    

 

 

    

 

 

    

 

 

 

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

Corporate adjusted EBITDA for 1Q21 represented a loss of US$23 million, which compares favorably with a loss of US$41 million in 1Q20, mainly on cost-efficiencies due to the voluntary retirement program executed in 2020 and high expected losses from ongoing projects recorded at our controlled company A Evangelista S.A. during 1Q20.

4.5. CONSOLIDATION ADJUSTMENTS

 

Consolidation Adjustments Financials

Unaudited Figures, in US$ million

   1Q20      4Q20      1Q21      Y/Y D  

Revenues

     (1,480      (1,141      (1,386      -6.4
  

 

 

    

 

 

    

 

 

    

 

 

 

Operating costs

     1,717        1,040        1,320        -23.1
  

 

 

    

 

 

    

 

 

    

 

 

 

Operating income before impairment of assets

     237        (101      (66      N.M  
  

 

 

    

 

 

    

 

 

    

 

 

 

Impairment of assets

     —          —          —          N.M  
  

 

 

    

 

 

    

 

 

    

 

 

 

Operating income

     237        (101      (66      N.M  
  

 

 

    

 

 

    

 

 

    

 

 

 

Depreciation & amortization

     —          —          —          N.M  

Impairment of assets

     —          —          —          N.M  
  

 

 

    

 

 

    

 

 

    

 

 

 

EBITDA

     237        (101      (66      N.M  
  

 

 

    

 

 

    

 

 

    

 

 

 

Leasing

     —          —          —          N.M  

Other adjustments

     —          —          —          N.M  
  

 

 

    

 

 

    

 

 

    

 

 

 

Adjusted EBITDA

     237        (101      (66      N.M  
  

 

 

    

 

 

    

 

 

    

 

 

 

Consolidation adjustments to eliminate results among business segments not transferred to third parties was negative US$66 million in 1Q21 versus positive US$237 million in 1Q20. In 1Q21, the gap between the transfer price across businesses and the cost of production of the company’s inventories widened mainly due to the increase in the international price of the Brent crude oil that affected transfer prices, while in 1Q20 it decreased due to the drop in Brent.

 

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5. LIQUIDITY AND SOURCES OF CAPITAL

5.1. CASH FLOW SUMMARY

 

Summary Consolidated Cash Flow

Unaudited Figures, in US$ million

   1Q20      4Q20      1Q21      Y/Y D  

Cash BoP

     1,106        784        650        -41.2

Net cash flow from operating activities

     961        849        1,054        9.6

Net cash flow from investing activities

     (688      (540      (523      -23.9

Net cash flow from financing activities

     (293      (377      (522      78.1

FX adjustments & other

     (12      (66      (46      N.M  
  

 

 

    

 

 

    

 

 

    

 

 

 

Cash EoP

     1,074        650        612        -43.0
  

 

 

    

 

 

    

 

 

    

 

 

 

Investment in financial assets

     85        344        382        N.M  
  

 

 

    

 

 

    

 

 

    

 

 

 

Cash + short-term investments EoP

     1,159        994        995        -14.2
  

 

 

    

 

 

    

 

 

    

 

 

 

FCF

     (85      182        284        N.M  
  

 

 

    

 

 

    

 

 

    

 

 

 

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

BoP stands for Beginning of period / EoP stands of End of period.

Net cash flows from operating activities amounted to US$1,054 million in 1Q21, increasing 9.6% y/y compared to the positive US$961 million in 1Q20. The y/y increase was mainly due to a decrease in working capital needs mainly motivated by a decrease in inventory levels, and the collections related to the legacy Plan Gas, despite the contraction in Adjusted EBITDA and the scheduled payments related to the termination of the contract with Exmar and the voluntary retirement program.

Net cash flows from investing activities were negative US$523 million, compared to negative US$688 million in 1Q20 mainly driven by a decrease in the acquisition of PP&E, which totaled US$493 million, including purchases of materials. This was partially offset by the collection of US$104 in 1Q20 in connection to the aforementioned transaction in the Bandurria Sur block.

Net cash flows from financing activities amounted to negative US$522 million, compared to negative US$293 million in 1Q20, mainly driven by a negative net borrowing figure of US$246 million compared to a positive amount of US$69 million in 1Q20, partially compensated by a reduction in interest payments which declined about 23.7%, totaling US$200 million in 1Q21 compared to US$262 million during the same period in 2020. The net negative borrowing for the quarter was concentrated in the amortization of the 2021 Notes, net of the effects of the debt exchange as most of the other maturities were rolled over. It is worth noting that during February, right after the consummation of the Global Debt Exchange, we accessed the local capital market being able to successfully raise over US$120 million equivalent through the combination of a reopening of a 3-year dollar-linked security and a new 42-month inflation-linked note, both providing very competitive financing conditions.

Free cash flow during the quarter reached US$284 million, an improvement compared to the outflow of US$85 million registered in 1Q20 and the inflow of US$182 million registered last quarter. The improvement was related to the aforementioned recovery in profitability and lower CAPEX, which allowed for a significant reduction in our net debt.

The previously described cash generation, together with the company’s investments in Argentine sovereign bonds and Treasury notes (US$382 million at market value), resulted in a position of cash and cash equivalents of US$995 million as of March 31, 2021, almost unchanged from the liquidity position we had in 4Q20.

 

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The Peso portion of our cash and cash equivalents reached 76% – compared to 18% in 1Q20 and 75% in 4Q20 – as Communication “A” 7030 from the Argentine Central Bank restricts corporations from holding liquid assets abroad if they want to continue having access to the official FX market. However, as of March 31st 2021, our net FX exposure related to our liquidity position, including our peso denominated debt and FX hedge of our cash, stood at around 20%.

5.2. NET DEBT

 

Net debt breakdown

Unaudited Figures, in US$ million

   1Q20     4Q20     1Q21     Q/Q D  

Short-term debt

     2,797       1,793       1,187       -33.8

Long-term debt

     6,002       6,277       6,560       4.5
  

 

 

   

 

 

   

 

 

   

 

 

 

Total debt

     8,799       8,070       7,747       -4.0
  

 

 

   

 

 

   

 

 

   

 

 

 

Avg. Interest rate for AR$-debt

     36.0     34.7     34.9  

Avg. Interest rate for US$-debt

     7.6     7.5     7.5  

% of debt in AR$

     9     6     6  
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash + short term investments

     1,159       994       995       0.1
  

 

 

   

 

 

   

 

 

   

 

 

 

% of cash in AR$

     18     75     76  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net debt

     7,640       7,076       6,752       -4.6
  

 

 

   

 

 

   

 

 

   

 

 

 

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

As of March 31, 2021, YPF’s consolidated net debt totaled US$6,752 million, decreasing by US$888 million y/y, and reaching a level not seen since 2015, driven by a 12.0% reduction in total debt to US$7,747 million, which more than offset a US$164 million contraction in our cash position. On a sequential basis, net debt declined by US$324 million, as net cash generated in our operations was used to reduce debt instead of building up the liquidity position given our strategy to maintain liquidity relatively stable to avoid incremental exposure to FX volatility or higher cost of carry.

Despite the lower net debt level, our net-debt-to-last-twelve-month-adjusted-EBITDA ratio was 4.9x, stable q/q but higher than the 2.2x ratio in 1Q20 due to the deterioration of our Adjusted EBITDA over the most recent quarters.

The aforementioned reduction in our indebtedness together with the cash relief for 2021 and 2022 from the Global Debt Exchange executed earlier this year, resulted in a significantly more manageable maturity profile, particularly in relation to short-term maturities. Furthermore, most maturities coming due in the remainder of this year are primarily concentrated in local loans and bonds, with just over US$250 million in cross-border maturities, most of which are trade-related.

The following chart shows the consolidated principal debt maturity profile of the company as of March 31st 2021, expressed in millions of dollars:

 

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YPF bonds issued during 1Q2021 are detailed below:

 

New Issuances

Instrument

   Market    Issue Date    Maturity
Date
   Currency   

Interest Rate

   Amount
Issued
 

Class XVI

   Global    12-Feb-21    12-Feb-26    US$    Step-up 4%/9%      775,782,279  

Class XVII

   Global    12-Feb-21    30-Jun-29    US$    Step-up 2.5%/9%      747,833,257  

Class XVIII

   Global    12-Feb-21    30-Sep-33    US$    Step-up 1.5%/7%      575,649,021  

Class XIX

   Domestic    26-Feb-21    26-Aug-24    UVAs    3.5%      60,472,978  (1) 

Additional Class XIV(2)

   Domestic    26-Feb-21    4-Dec-23    US$ linked    2.0%      75,551,034  

 

(1)

Equivalent to AR$ 4,128,490,208.06.

(2)

Reopening Class XIV issued at discount with an equivalent interest rate of 3.0%.

 

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6. TABLES AND NOTES

6.1. CONSOLIDATED STATEMENT OF INCOME

 

Income Statement

   1Q20     4Q20     1Q21     Y/Y D  

Unaudited Figures, in US$ million

        

Revenues

     2,832       2,270       2,648       -6.5
  

 

 

   

 

 

   

 

 

   

 

 

 

Costs

     (2,366     (2,076     (2,238     -5.4
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

     466       194       410       -12.1
  

 

 

   

 

 

   

 

 

   

 

 

 

Selling expenses

     (225     (224     (225     -0.1

Administrative expenses

     (109     (135     (103     -6.1

Exploration expenses

     (12     (10     (2     -84.5

Impairment of property, plant and equipment and intangible assets

     —         822       —         N.M  

Other operating results, net

     120       (99     (3     N.M  
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     241       549       78       -67.7
  

 

 

   

 

 

   

 

 

   

 

 

 

Income of interests in companies and joint ventures

     22       56       58       N.M  

Financial Income

     339       420       254       -25.1

Financial Cost

     (489     (454     (365     -25.2

Other financial results

     (22     59       63       N.M  

Financial results, net

     (172     24       (49     -71.7
  

 

 

   

 

 

   

 

 

   

 

 

 

Net profit before income tax

     91       629       87       -4.9
  

 

 

   

 

 

   

 

 

   

 

 

 

Income tax

     12       (90     (112     N.M  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net profit for the period

     103       539       (25     N.M  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net profit for shareholders of the parent company

     101       553       (23     N.M  

Net profits for non-controlling interest

     2       (14     (2     N.M  

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

     0.26       1.41       (0.06     N.M  

Other comprehensive income

     705       765       742       5.3
  

 

 

   

 

 

   

 

 

   

 

 

 

Total comprehensive income for the period

     808       1,304       716       -11.3
  

 

 

   

 

 

   

 

 

   

 

 

 

 

Income Statement

  1Q20     4Q20     1Q21     Y/Y D  

Unaudited Figures, in AR$ million

       

Revenues

    174,670       187,473       234,890       34.5
 

 

 

   

 

 

   

 

 

   

 

 

 

Costs

    (145,914     (171,123     (198,531     36.1
 

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

    28,756       16,350       36,359       26.4
 

 

 

   

 

 

   

 

 

   

 

 

 

Selling expenses

    (13,876     (18,433     (19,945     43.7

Administrative expenses

    (6,749     (11,214     (9,125     35.2

Exploration expenses

    (716     (772     (159     -77.8

Impairment of property, plant and equipment and intangible assets

    —         65,685       —         N.M  

Other operating results, net

    7,383       (7,878     (276     N.M  
 

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

    14,798       43,738       6,854       -53.7
 

 

 

   

 

 

   

 

 

   

 

 

 

Income of interests in companies and joint ventures

    1,420       5,020       5,116       N.M  

Financial Income

    20,806       33,729       22,347       7.4

Financial Cost

    (30,134     (37,553     (32,323     7.3

Other financial results

    (1,293     5,382       5,685       N.M  

Financial results, net

    (10,621     1,558       (4,291     -59.6
 

 

 

   

 

 

   

 

 

   

 

 

 

Net profit before income tax

    5,597       50,316       7,679       37.2
 

 

 

   

 

 

   

 

 

   

 

 

 

Income tax

    754       (7,304     (9,926     N.M  
 

 

 

   

 

 

   

 

 

   

 

 

 

Net profit for the period

    6,351       43,012       (2,247     N.M  
 

 

 

   

 

 

   

 

 

   

 

 

 

Net profit for shareholders of the parent company

    6,212       44,235       (2,066     N.M  

Net profits for non-controlling interest

    139       (1,223     (181     N.M  

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

    15.83       112.71       (5.26     N.M  

Other comprehensive income

    43,274       61,303       65,658       51.7
 

 

 

   

 

 

   

 

 

   

 

 

 

Total comprehensive income for the period

    49,625       104,315       63,411       27.8
 

 

 

   

 

 

   

 

 

   

 

 

 

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-20      31-Mar-21      31-Dec-20      31-Mar-21  

Non-current Assets

           

Intangible assets

     465        460        39,119        42,266  

Properties, plant and equipment

     16,413        16,129        1,379,527        1,482,277  

Assets for leasing

     524        526        44,081        48,384  

Investments in companies and joint ventures

     1,274        1,302        107,112        119,669  

Deferred tax assets, net

     31        29        2,629        2,690  

Other receivables

     174        163        14,657        14,952  

Trade receivables

     101        56        8,531        5,179  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total Non-current Assets

     18,985        18,666        1,595,656        1,715,417  
  

 

 

    

 

 

    

 

 

    

 

 

 

Current Assets

           

Assets held for disposal

     6        6        494        540  

Inventories

     1,191        1,212        100,137        111,343  

Contract assets

     10        4        871        394  

Other receivables

     409        516        34,369        47,419  

Trade receivables

     1,287        1,293        108,146        118,795  

Investment in financial assets

     344        382        28,934        35,127  

Cash and cash equivalents

     650        612        54,618        56,276  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total Current Assets

     3,897        4,025        327,569        369,894  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total Assets

     22,882        22,691        1,923,225        2,085,311  
  

 

 

    

 

 

    

 

 

    

 

 

 

Shareholders’ Equity

           

Shareholders’ contributions

     124        114        10,385        10,467  

Reserves, other comprehensive income and retained earnings

     7,934        7,940        666,845        729,649  

Non-controlling interest

     73        74        6,165        6,772  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total Shareholders’ Equity

     8,131        8,127        683,395        746,888  
  

 

 

    

 

 

    

 

 

    

 

 

 

Non-current Liabilities

           

Provisions

     2,219        2,240        186,488        205,867  

Deferred tax liabilities, net

     1,423        1,416        119,609        130,144  

Income tax payable

     42        37        3,571        3,442  

Other taxes payable

     3        2        215        201  

Salaries and social security

     46        46        3,860        4,203  

Liabilities from leasing

     288        298        24,172        27,387  

Loans

     6,277        6,560        527,575        602,830  

Other liabilities

     35        16        2,961        1,429  

Accounts payable

     8        10        710        958  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total non-current Liabilities

     10,341        10,625        869,161        976,461  
  

 

 

    

 

 

    

 

 

    

 

 

 

Current Liabilities

           

Provisions

     73        72        6,133        6,652  

Contract liabilities

     81        63        6,824        5,799  

Income tax payable

     9        10        740        946  

Other taxes payable

     188        268        15,764        24,671  

Salaries and social security

     178        150        14,934        13,769  

Liabilities from leasing

     263        250        22,098        23,015  

Loans

     1,793        1,187        150,731        109,085  

Other liabilities

     108        99        9,062        9,087  

Accounts payable

     1,718        1,838        144,383        168,938  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total Current Liabilities

     4,410        3,939        370,669        361,962  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total Liabilities

     14,751        14,564        1,239,830        1,338,423  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total Liabilities and Shareholders’ Equity

     22,882        22,691        1,923,225        2,085,311  
  

 

 

    

 

 

    

 

 

    

 

 

 

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

 

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6.3. CONSOLIDATED STATEMENT OF CASH FLOW

 

Cash Flow Statement

   1Q20     4Q20     1Q21     Y/YD  

Unaudited Figures, in US$ million

        

Operating activities

        

Net income

     103       539       (25     N.M  

Income of interests in companies and joint ventures

     (22     (56     (58     N.M  

Depreciation of property, plant and equipment

     710       466       688       -3.2

Depreciation of the right-of-use assets

     77       56       48       -38.4

Amortization of intangible assets

     11       12       12       8.1

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

     77       86       83       7.8

Income tax charge

     (12     90       112       N.M  

Net increase in provisions

     63       56       65       2.7

Impairment of property, plant and equipment and intangible assets

     —         (822     —         N.M  

Interest, exchange differences and others

     161       (76     43       -73.0

Stock compensation plans

     2       2       1       -43.9

Accrued insurance

     (7     (6     —         N.M  

Results for assignment of participation in areas

     (104     —         —         N.M  

Results from exchange of debt instruments

     —         —         (21     N.M  

Changes in assets and liabilities

        

Trade receivables

     251       207       21       -91.8

Other receivables

     (65     (46     (93     43.4

Inventories

     (179     178       (25     -85.8

Accounts payable

     (56     54       191       N.M  

Other taxes payable

     6       (15     91       N.M  

Salaries and Social Security

     (29     42       (28     -4.4

Other liabilities

     3       110       (27     N.M  

Decrease in provisions included in liabilities for payments / utilization

     (22     (11     (21     -6.6

Contract Assets

     (8     (6     5       N.M  

Contract Liabilities

     1       (17     (7     N.M  

Dividends received

     2       2       0       -85.1

Insurance charge for loss of profit

     4       9       0       -96.6

Income tax payments

     (7     (7     (1     -80.0
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash flow from operating activities

     961       849       1,054       9.6
  

 

 

   

 

 

   

 

 

   

 

 

 

Investing activities

        

Acquisitions of property, plant and equipment and intangible assets

     (792     (410     (493     -37.7

Contributions and acquisitions of interests in companies and joint ventures

     —         —         —         N.M  

Proceeds from sales of financial assets

     —         93       105       N.M  

Payments for the acquisition of financial assets

     —         (224     (148     N.M  

Interest received from financial assets

     —         0       13       N.M  

Collection for assignment of participation in areas

     104       —         —         -100.0
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash flow from investing activities

     (688     (540     (523     -23.9
  

 

 

   

 

 

   

 

 

   

 

 

 

Financing activities

        

Payment of loans

     (342     (566     (537     56.9

Payment of interests

     (262     (159     (200     -23.7

Proceeds from loans

     411       455       291       -29.3

Acquisition of own shares

     —         (7     —         N.M  

Payment of leasing

     (97     (98     (77     -20.8

Payment of interests related to income tax

     (4     (1     (0     -98.2

Payment of dividends

     —         —         —         N.M  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash flow from financing activities

     (293     (377     (522     78.1
  

 

 

   

 

 

   

 

 

   

 

 

 

Effect of changes in exchange rates on cash and cash equivalents

     69       5       10       -85.0

Translation adjustments

     (81     (71     (56     -30.6

Increase (decrease) in cash and cash equivalents

     (32     (134     (37     18.8

Cash and cash equivalents at the beginning of the period

     1,106       784       650       -41.2
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash and cash equivalents at the end of the period

     1,074       650       612       -43.0
  

 

 

   

 

 

   

 

 

   

 

 

 

 

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Cash Flow Statement

   1Q20     4Q20     1Q21     Y/YD  

Unaudited Figures, in AR$ million

        

Operating activities

        

Net income

     6,351       43,012       (2,247     N.M  

Income of interests in companies and joint ventures

     (1,420     (5,020     (5,116     N.M  

Depreciation of property, plant and equipment

     43,636       37,505       60,875       39.5

Depreciation of the right-of-use assets

     4,752       4,491       4,214       -11.3

Amortization of intangible assets

     669       1,019       1,042       55.8

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

     4,737       6,892       7,369       55.6

Income tax charge

     (754     7,304       9,926       N.M  

Net increase in provisions

     3,862       4,485       5,723       48.2

Impairment of property, plant and equipment and intangible assets

     —         (65,685     —         N.M  

Interest, exchange differences and others

     9,840       (5,787     3,814       -61.2

Stock compensation plans

     147       173       119       -19.0

Accrued insurance

     (458     (454     —         N.M  

Results for assignment of participation in areas

     (6,356     —         —         N.M  

Results from exchange of debt instruments

     —         —         (1,855     N.M  

Changes in assets and liabilities

        

Trade receivables

     15,390       16,563       1,816       -88.2

Other receivables

     (3,995     (3,665     (8,263     N.M  

Inventories

     (10,952     14,261       (2,247     -79.5

Accounts payable

     (3,406     4,314       16,880       N.M  

Other taxes payable

     365       (1,180     8,067       N.M  

Salaries and Social Security

     (1,775     3,341       (2,449     38.0

Other liabilities

     173       8,776       (2,377     N.M  

Decrease in provisions included in liabilities for payments / utilization

     (1,351     (884     (1,821     34.8

Contract Assets

     (517     (498     480       N.M  

Contract Liabilities

     86       (1,396     (611     N.M  

Dividends received

     130       122       28       -78.5

Insurance charge for loss of profit

     247       722       12       -95.1

Income tax payments

     (446     (542     (129     -71.1
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash flow from operating activities

     58,955       67,869       93,250       58.2
  

 

 

   

 

 

   

 

 

   

 

 

 

Investing activities

        

Acquisitions of property, plant and equipment and intangible assets

     (48,540     (32,736     (43,640     -10.1

Contributions and acquisitions of interests in companies and joint ventures

     —         —         —         N.M  

Proceeds from sales of financial assets

     —         7,447       9,256       N.M  

Payments for the acquisition of financial assets

     —         (17,921     (13,094     N.M  

Interest received from financial assets

     —         3       1,172       N.M  

Collection for assignment of participation in areas

     6,356       —         —         -100.0
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash flow from investing activities

     (42,184     (43,207     (46,306     9.8
  

 

 

   

 

 

   

 

 

   

 

 

 

Financing activities

        

Payment of loans

     (20,964     (45,245     (47,468     N.M  

Payment of interests

     (16,043     (12,740     (17,663     10.1

Proceeds from loans

     25,221       36,334       25,713       2.0

Acquisition of own shares

     —         (550     —         N.M  

Payment of leasing

     (5,936     (7,820     (6,783     14.3

Payment of interests related to income tax

     (264     (88     (7     -97.3

Payment of dividends

     —         —         —         N.M  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash flow from financing activities

     (17,986     (30,109     (46,208     N.M  
  

 

 

   

 

 

   

 

 

   

 

 

 

Effect of changes in exchange rates on cash and cash equivalents

     4,247       424       922       -78.3

Increase (decrease) in cash and cash equivalents

     3,032       (5,023     1,658       -45.3

Cash and cash equivalents at the beginning of the period

     66,100       59,641       54,618       -17.4
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash and cash equivalents at the end of the period

     69,132       54,618       56,276       -18.6
  

 

 

   

 

 

   

 

 

   

 

 

 

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

 

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6.4. MAIN PHYSICAL MAGNITUDES

 

Main physical magnitudes                                               

Unaudited Figures

   Unit    1Q20      2Q20      3Q20      4Q20      Cum. 2020      1Q21  

Total Production

   Kboe      46,439        42,480        43,101        38,901        170,920        39,330  
  

 

  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Crude oil production

   Kbbl      20,488        18,274        18,621        18,311        75,693        18,691  

NGL production

   Kbbl      4,090        4,162        4,121        995        13,369        2,653  

Gas production

   Mm3      3,476        3,187        3,237        3,116        13,015        2,860  

Henry Hub

   USD/MMBTU      2.0        1.6        2.2        2.7        2.1        2.7  

Brent

   USD/bbl      50.4        29.3        43.0        44.3        41.8        60.8  

Sales volume (YPF stand alone)

                    
  

 

  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Sales of refined products

   Km3      4,101        3,041        3,771        4,056        14,970        4,140  
  

 

  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Domestic market

   Km3      3,541        2,679        3,495        3,890        13,606        3,901  

Gasoline

   Km3      1,222        579        816        1,081        3,698        1,240  

Diesel

   Km3      1,722        1,578        1,931        1,812        7,044        1,811  

Jet fuel and kerosene

   Km3      126        13        14        27        180        65  

Fuel Oil

   Km3      4        29        157        85        275        102  

LPG

   Km3      136        182        229        122        670        130  

Other (*)

   Km3      330        298        348        763        1,739        553  

Export market

   Km3      561        362        275        166        1,364        239  

Petrochemical naphtha

   Km3      86        104        52        24        266        0  

Jet fuel and kerosene

   Km3      124        10        10        22        165        25  

LPG

   Km3      141        23        33        38        235        74  

Bunker (Diesel and Fuel Oil)

   Km3      103        103        94        51        350        52  

Other (*)

   Km3      107        122        87        31        347        88  
  

 

  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Sales of petrochemical products

   Ktn      227        147        192        152        717        247  
  

 

  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Domestic market

   Ktn      166        95        147        116        524        166  

Methanol

   Ktn      55        22        36        14        129        43  

Other

   Ktn      111        72        110        102        395        123  

Export market

   Ktn      61        52        45        36        193        81  

Methanol

   Ktn      27        6        2        15        50        45  

Other

   Ktn      33        46        43        21        143        37  
  

 

  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Grain, flours and oils

   Ktn      238        523        459        217        1,438        294  
  

 

  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Domestic market

   Ktn      33        97        57        29        216        11  

Export market

   Ktn      205        427        401        189        1,221        284  
  

 

  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Fertilizers

   Ktn      91        227        233        131        682        186  
  

 

  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Domestic market

   Ktn      91        227        233        131        682        186  

Main products imported (YPF stand alone)

                    

Gasolines

   Km3      51        0        0        0        51        82  

Jet Fuel

   Km3      0        0        0        8        8        0  

Diesel

   Km3      78        150        82        61        371        46  

Brent: The Brent price has been restated for 1Q20.

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

 

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

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

YPF’s actual future financial condition, financial, operating, reserve replacement and other ratios, results of operations, business strategy, geographic concentration, business concentration, production and marketed volumes, reserves, capital expenditures, investments, expansion and other projects, exploration activities, ownership interests, divestments, cost savings and dividend payout policies, as well as actual future economic and other conditions, such as the future price of petroleum and petroleum products, refining margins and exchange rates, could differ materially from those expressed or implied in any such forward-looking statements. Important factors that could cause such differences include, but are not limited to fluctuations in the price of petroleum and petroleum products, supply and demand levels, currency fluctuations, exploration, drilling and production results, changes in reserves estimates, success in partnering with third parties, loss of market share, industry competition, environmental risks, physical risks, the risks of doing business in developing countries, legislative, tax, legal and regulatory developments, economic and financial market conditions in various countries and regions, political risks, wars and acts of terrorism, natural disasters, project delays or advancements and lack of approvals, as well as those factors described in the filings made by YPF and its affiliates before the Comisión Nacional de Valores in Argentina and with the U.S. Securities and Exchange Commission, in particular, those described in “Item 3. Key Information—Risk Factors” and “Item 5. Operating and Financial Review and Prospects” in YPF’s Annual Report on Form 20-F for the fiscal year ended December 31, 2020 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, 2021    By:   

/s/ Santiago Wesenack

   Name:    Santiago Wesenack
   Title:    Market Relations Officer