SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 6-K

 

 

REPORT OF FOREIGN PRIVATE ISSUER

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

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of May 2024

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 ☐

 

 

 

YPF Sociedad Anónima

TABLE OF CONTENT

ITEM 1 Translation of letter to the Argentine Securities Commission dated May 9, 2024.

 

1Q24 Webcast on May 10, 2024 9:00 am ET / 10:00 am BAT

 

Buenos Aires, May 9, 2024 – YPF (BYMA: YPFD | NYSE: YPF¹), announces the 1Q24 results. Information based on financial statements prepared according to IFRS in force in Argentina. The sum of the parts of certain figures is subject to rounding. The Company’s functional currency is US$. As from 2022, annual financial statements are reported in US$ and AR$, and as from 1Q24, quarterly financial statements are also reported in both currencies to provide a better understanding of our business activities and analysis of our financial performance.

1. MAIN HIGHLIGHTS OF 1Q24

 

KPI		1Q24				4Q23				Q/Q Δ				1Q23				Y/Y Δ
Financial
Revenues			4,310				4,194				3	%			4,238				2	%
Adjusted EBITDA			1,245				1,082				15	%			1,044				19	%
Net Result			657				(1,861	)			N/A				341				93	%
CAPEX			1,252				1,466				-15	%			1,298				-4	%
FCF			(394	)			(60	)			557	%			(17	)			2218	%
Net Debt			7,200				6,803				6	%			6,043				19	%
Net Leverage Ratio (x)			1.7				1.7				0	%			1.2				39	%
Upstream
Hydrocarbon Production (Kboe/d)			526.0				510.7				3	%			510.6				3	%
Crude Oil (Kbbl/d)			255.5				255.1				0	%			238.5				7	%
Natural Gas (Mm3/d)			36.4				34.4				6	%			36.5				0	%
NGL (Kbbl/d)			41.8				39.6				6	%			42.9				-3	%
Crude Oil Price (US$/bbl)			68.3				59.3				15	%			66.8				2	%
Natural Gas Price (US$/MBTU)			3.0				2.9				1	%			3.0				-1	%
Medanito Oil Exports (Kbbl/d)			22.9				18.8				22	%			—				N/A
Total Lifting Cost (US$/boe)			12.9				15.3				-16	%			14.6				-12	%
Core-Hub Lifting Cost (US$/boe)			3.4				4.0				-15	%			4.0				-16	%
Downstream
Crude Processed (Kbbl/d)			301.1				289.8				4	%			307.2				-2	%
Refineries’ Utilization Rate (%)			92	%			88	%			4	%			94	%			-2	%
Local Fuels Volume Sold (Km3)			3,489				3,929				-11	%			3,566				-2	%
Local Fuels Net Price (US$/m3)			691				620				11	%			655				5	%
Imported Fuels (Km3)			142				711				-80	%			429				-67	%
R&M Adj. EBITDA (US$/bbl)			19.1				16.8				13	%			13.2				44	%

In US$ million, unless noted otherwise. EBITDA = Operating income + Depreciation of PP&E + Depreciation of the right of use assets + Amortization of intangible assets + Unproductive exploratory drillings + (Reversal) / Deterioration of PP&E. Adjusted EBITDA = EBITDA that excludes IFRS 16 effects +/- one-off items. Net Leverage Ratio = Net Debt / LTM Adj. EBITDA. FCF = Cash flow from Operations less CAPEX (Investing activities), M&A (Investing activities), and interest and leasing payments (Financing activities). Fuels = diesel + gasoline. R&M is refining and marketing business, it excludes petrochemicals and agro businesses.

Adjusted EBITDA totaled US$1,245 million (+15% vs. 4Q23), on the back of better local fuels prices in dollar terms, coupled with lower cost pressure after the devaluation of mid-December. These effects were partially offset by decreases in FX regime for exporters and replacement cost of our inventories. Interannually, the increase was even higher, driven by oil output growth.

Total hydrocarbon production averaged 526 kboe/d (+3% both in q/q and y/y), boosted by shale contribution, representing now 49% of the total. Crude oil remained high at 255 kbbl/d (flat q/q but +7% y/y), on the back of a 21% interannual growth in shale oil that continued delivering positive results, reaching 112 kbbl/d in 1Q24 (+3% q/q and 21% y/y), while Medanito oil exports to Chile amounted to 23 kbbl/d (+22% q/q).

Domestic fuel’s demand declined by 11% q/q, mainly due to retail demand contraction and seasonal diesel demand, resulting in lower fuels imports (-80% q/q and -66% y/y), representing only 4% of local fuels sales in 1Q 24. Processing levels at our refineries averaged 301 kbbl/d, reaching a refining utilization rate of 92% (+4% q/q).

CAPEX totaled US$1,252 million, decreasing 15% q/q and 4% y/y, mainly affected by devaluation of mid-December. More than 50% of the total was concentrated in shale operations, in line with the Company’s strategy for the short-term growth.

Free cash flow totaled a negative US$394 million, compared to a negative US$60 million in 4Q23, considering that the payment of imports deferred from 2023 and debt services were not fully compensated by the positive cash flow from operations, raising net debt to US$7.2 billion, while maintaining net leverage ratio at 1.7x.

 

1	1 ADR = 1 share. Total issued capital stock amounted to 393,312,793 shares as of Mar-2024 (51% Argentina Government; 36% NYSE and 13% ByMA).

 

Page 2/14

 

2. ANALYSIS OF CONSOLIDATED RESULTS OF 1Q24

 

Consolidated Revenues Breakdown Unaudited Figures, in US$ million		1Q23				4Q23				1Q24				Y/Y Δ				Q/Q Δ
Diesel			1,620				1,672				1,556				-4.0	%			-6.9	%
Gasoline			892				943				1,022				14.5	%			8.4	%
Natural gas as producers (third parties)			270				279				278				2.8	%			-0.7	%
Other			977				738				795				-18.7	%			7.6	%
Total Domestic Market			3,759				3,632				3,650				-2.9	%			0.5	%
Jet fuel			162				152				154				-4.7	%			1.5	%
Grain and flours			5				0				27				456.3	%			N/A
Crude oil			12				151				189				1455.1	%			24.8	%
Petchem & Other			300				258				290				-3.3	%			12.3	%
Total Export Market			479				562				660				37.9	%			17.6	%
Total Revenues			4,238				4,194				4,310				1.7	%			2.8	%

Net Revenues amounted to US$4,310 million (+3% q/q), mainly driven by higher local fuels prices in dollar terms and higher Medanito crude oil exports to Chile, partially offset by lower local demand of fuels, particularly diesel, and fertilizers. Moreover, during 4Q23, our subsidiaries with functional currency in AR$² were affected by the devaluation of mid-December.

 

Unaudited Figures, in US$ million		1Q23				4Q23				1Q24				Y/Y Δ				Q/Q Δ
Lifting cost			(671	)			(719	)			(617	)			-8.0	%			-14.1	%
Other Upstream			(115	)			(144	)			(140	)			21.6	%			-3.0	%
Refining & Logictic cost			(377	)			(409	)			(338	)			-10.6	%			-17.5	%
Other Downstream			(138	)			(185	)			(126	)			-8.9	%			-32.0	%
G&P, Corp. & Other			(105	)			(10	)			(160	)			52.1	%			1498.2	%
Total OPEX			(1,406	)			(1,467	)			(1,380	)			-1.8	%			-5.9	%
Depreciation & Amortization			(775	)			(780	)			(652	)			-15.9	%			-16.4	%
Royalties			(236	)			(227	)			(256	)			8.4	%			12.8	%
Other costs			(249	)			(205	)			(274	)			10.1	%			33.7	%
Total Other Costs			(1,260	)			(1,212	)			(1,182	)			-6.2	%			-2.5	%
Fuels imports (including jet fuel)			(343	)			(588	)			(99	)			-71.1	%			-83.2	%
Crude oil purchases to third parties			(386	)			(308	)			(375	)			-3.0	%			21.5	%
Biofuel purchases			(239	)			(153	)			(242	)			1.2	%			58.1	%
Agro products purchases			(114	)			(73	)			(70	)			-38.3	%			-3.2	%
Other purchases			(272	)			(112	)			(178	)			-34.8	%			58.1	%
Stock variations			126				(68	)			(125	)			N/A				83.8	%
Total Purchases & Stock Variations			(1,228	)			(1,302	)			(1,088	)			-11.4	%			-16.4	%
Other operating results, net			(9	)			152				6				N/A				-96.1	%
Impairment of assets			—				(1,782	)			—				N/A				N/A
Operating Costs + Purchases + Impairment of Assets			(3,903	)			(5,611	)			(3,644	)			-6.6	%			-35.1	%

Stock variations include price effects by (US$29) million in 1Q23, (US$29) million for 4Q23 and (US$169) million for 1Q24.

OPEX totaled US$1,380 million (-6% q/q), mostly explained by the sharp devaluation of mid-December, and to a lesser extent, cost-efficiencies gained in the downstream and upstream segments, such as tariff reduction on supply chain. These effects were partially offset by the impact of devaluation on our subsidiaries with AR$ as functional currency during 4Q23.

Total Purchases and Stock Variations amounted to US$1,088 million (-16% q/q), primarily due to lower imports of fuels due to demand contraction in 1Q24, while 4Q23 was also affected by programmed stoppage at La Plata refinery. These effects were partially offset by restoration of biodiesel’s availability, higher crude oil purchases, in line with local oil price recovery, and a negative stock variation, even more than 4Q23, as a result of lower replacement cost of our inventories.

Net other operating results represented a US$6 million gain (vs. US$152 million in 4Q23), mainly due to lower FX regime for exporters after devaluation. Finally, a non-recurring impairment charge of US$1,782 million was recorded in 4Q23, as a result of the revision of recoverable value of conventional mature fields³ in the upstream. Also, this effect reduced depreciation and amortization in 1Q24 to US$652 million (-16% q/q).

 

2	The financial information of our subsidiaries, having AR$ as functional currency, is adjusted for inflation, corresponding to a hyperinflationary economy in accordance with IAS guidelines, and consolidated using the exchange rate for the end of the period.

3	For further information, please see 4Q23 Earnings Release, page 4.

 

Page 3/14

 

Consolidated Net Income Breakdown Unaudited Figures, in US$ million		1Q23				4Q23				1Q24				Y/Y Δ				Q/Q Δ
Operating income / (loss)			335				(1,417	)			666				98.8	%			N/A
Income from equity interests in associates and joint ventures			89				(133	)			129				44.9	%			N/A
Financial results, net			2				549				(259	)			N/A				N/A
Net result before tax			426				(1,001	)			536				25.8	%			N/A
Income tax			(85	)			(860	)			121				N/A				N/A
Net result			341				(1,861	)			657				92.7	%			N/A
Net Income before impairment of assets			341				(703	)			657				92.7	%			N/A

Net financial results represented a US$259 million loss (vs. a US$549 million gain in 4Q23), mainly due to the extraordinary impact of the devaluation on net monetary-liability position in AR$ during 4Q23, and to a lesser extent, lower gains from holding financial securities in 1Q24.

The income tax was positive at US$121 million in 1Q24 (vs. a charge of US$860 million in 4Q23), mainly due to lower deferred tax liabilities, as inflation outpaced devaluation in 1Q24. Consequently, net result returned to positive territory at US$657 million (vs. a US$1,861 million loss in 4Q23).

3. ADJ. EBITDA & CAPEX

3.1 ADJ. EBITDA RECONCILIATION

 

Reconciliation of Adjusted EBITDA Unaudited Figures, in US$ million		1Q23				4Q23				1Q24				Y/Y Δ				Q/Q Δ
Net result			341				(1,861	)			657				92.7	%			N/A
Financial results, net			(2	)			(549	)			259				N/A				N/A
Income from equity interests in associates and joint ventures			(89	)			133				(129	)			44.9	%			N/A
Income tax			85				860				(121	)			N/A				N/A
Unproductive exploratory drillings			6				6				6				0.0	%			0.0	%
Depreciation & amortization			775				780				652				-15.9	%			-16.4	%
Impairment of assets			—				1,782				—				N/A				N/A
EBITDA			1,116				1,151				1,324				18.6	%			15.0	%
Leasing			(72	)			(69	)			(79	)			10.7	%			14.2	%
Other adjustments			—				—				—				N/A				N/A
Adjusted EBITDA			1,044				1,082				1,245				19.2	%			15.1	%

3.2 ADJ. EBITDA & CAPEX BY SEGMENT

 

By Segment		1Q24				4Q23				1Q23
Adj. EBITDA
Upstream			839				658				710
Downstream			672				575				369
Gas & Power			(30	)			(38	)			(9	)
Corp			(26	)			(13	)			(49	)
Eliminations			(210	)			(100	)			24
Total Adj. EBITDA			1,245				1,082				1,044
CAPEX
Upstream			1,013				1,084				1,015
Downstream			206				324				214
Gas & Power			12				41				52
Corp			21				17				17
Eliminations			—				—				—
Total CAPEX			1,252				1,466				1,298

Note: Downstream Adjusted EBITDA includes inventories price effect of oil products for (-US$58) million in 1Q23, US$40 million in 4Q23 and US$103 million in 1Q24.

 

Page 4/14

 

3.3 ADJ. EBITDA q/q & y/y EVOLUTION

 

 

 

Page 5/14

 

4. ANALYSIS OF RESULTS BY SEGMENT

4.1 UPSTREAM

 

Upstream Financials Unaudited Figures, in US$ million		1Q23				4Q23				1Q24				Y/Y Δ				Q/Q Δ
Crude oil			1,406				1,332				1,559				10.9	%			17.1	%
Natural gas			358				353				354				-1.0	%			0.2	%
Other			65				53				71				9.4	%			34.3	%
Revenues			1,828				1,738				1,984				8.5	%			14.2	%
Depreciation & amortization			(602	)			(620	)			(478	)			-20.6	%			-22.9	%
Lifting cost			(671	)			(719	)			(617	)			-8.0	%			-14.1	%
Royalties			(233	)			(224	)			(254	)			9.0	%			13.1	%
Exploration expenses			(18	)			(19	)			(23	)			27.8	%			21.1	%
Other			(161	)			(84	)			(208	)			29.5	%			147.9	%
Operating income before impairment of assets			144				72				404				180.6	%			461.1	%
Impairment of assets			—				(1,782	)			—				N/A				N/A
Operating income / (loss)			144				(1,710	)			404				180.6	%			N/A
Depreciation & amortization			602				620				478				-20.6	%			-22.9	%
Unproductive exploratory drillings			6				6				6				0.0	%			0.0	%
Impairment of assets			—				1,782				—				N/A				N/A
EBITDA			752				698				888				18.1	%			27.2	%
Leasing			(42	)			(40	)			(49	)			17.4	%			23.4	%
Other adjustments			—				—				—				N/A				N/A
Adjusted EBITDA			710				658				839				18.1	%			27.4	%
CAPEX			1,015				1,084				1,013				-0.2	%			-6.5	%

 

Unit Cash Costs Unaudited Figures, in US$/boe		1Q23				4Q23				1Q24				Y/Y Δ				Q/Q Δ
Lifting Cost			14.6				15.3				12.9				-11.6	%			-15.7	%
Royalties and other taxes			6.5				6.0				6.7				3.4	%			11.3	%
Other Costs			2.7				3.3				3.1				12.8	%			-6.0	%
Total Cash Costs (US$/boe)			23.8				24.6				22.7				-4.7	%			-7.8	%

Revenues totaled almost US$2.0 billion in 1Q24 (+14% q/q), mainly driven by recovery in crude oil prices (+15%), coupled with higher crude oil volume sold (+2%), as a result of a better pricing landscape in the local market, while the contribution from natural gas remained almost unchanged.

Lifting cost reached US$12.9/BOE (-16% q/q), primarily due to lower cost pressures in local currency, as a result of the sharp devaluation occurred by year-end, as well as increased shale production and aforementioned cost-efficiencies. Our conventional blocks averaged US$21.5/BOE (-16% q/q), while unconventional activities averaged US$4.6/BOE (-8% q/q). Zooming in, lifting cost of our shale core hub blocks, on a gross basis (at 100% stake), also declined to US$3.4/BOE (-15% q/q), far below the already competitive levels of around US$4/BOE recorded during 2023.

Royalties and other taxes averaged US$6.7/BOE (+11% q/q), mostly as a result of higher crude oil realization price.

Adjusted EBITDA totaled US$839 million (+27% q/q), driven by higher crude oil prices and lower OPEX due to devaluation, partially offset by reduced FX regime for exporters.

CAPEX amounted to US$1.0 billion (-7% q/q but similar to 1Q23), where 65% was allocated to drilling and workover activities, 30% to new facilities or the expansion of existing ones, and 5% to exploration and other upstream activities. 73% of total capex was deployed within the unconventional areas.

Drilling and workover activities showed a positive trend, completing a total of 67 new wells in our operated blocks: 29 horizontal shale (all of them oil) and 38 conventional.

 

Page 6/14

 

In terms of efficiencies within our shale operations, during 1Q24 the Company continued setting new records on drilling and fracking performance, averaging 290 meters per day in drilling and 219 stages per set per month on fracking, increasing by 9% and 11%, respectively vs. the previous quarter. Moreover, during February, we achieved the highest drilling speed for one well in Aguada del Chañar block, reaching 475 meters per day for a well of almost 4,000 meters of horizontal length, which was fully drilled in 15 days.

Regarding our exploratory strategy, a few days ago we started drilling the first offshore ultra deepwater well at CAN-100 block, located 315 km from the port of Mar del Plata in the Province of Buenos Aires. Moreover, a few days ago we finished drilling the first horizontal well at El Cerrito Block, in the Palermo Aike formation, which is the second largest unconventional resource in Argentina after Vaca Muerta.

 

Upstream Operating data Unaudited Figures		1Q23				4Q23				1Q24				Y/Y Δ				Q/Q Δ
Net Production Breakdown
Crude Production (Kbbld)			238.5				255.1				255.5				7.1	%			0.2	%
Conventional			143.3				143.1				140.9				-1.7	%			-1.6	%
Shale			92.5				109.4				112.3				21.5	%			2.6	%
Tight			2.7				2.5				2.3				-14.8	%			-10.2	%
NGL Production (Kbbld)			42.9				39.6				41.8				-2.5	%			5.7	%
Conventional			12.5				9.1				10.6				-14.6	%			16.3	%
Shale			29.3				29.3				29.9				2.3	%			2.3	%
Tight			1.2				1.1				1.2				4.4	%			7.2	%
Gas Production (Mm3d)			36.5				34.4				36.4				-0.2	%			5.9	%
Conventional			14.3				12.4				13.1				-8.4	%			5.8	%
Shale			16.7				17.0				18.0				7.8	%			6.3	%
Tight			5.4				5.0				5.3				-3.4	%			4.5	%
Total Production (Kboed)			510.6				510.7				526.0				3.0	%			3.0	%
Conventional			245.7				230.1				233.8				-4.8	%			1.6	%
Shale			226.9				245.4				255.7				12.7	%			4.2	%
Tight			38.1				35.3				36.5				-4.0	%			3.6	%
Average realization prices
Crude Oil (USD/bbl)			66.8				59.3				68.3				2.2	%			15.1	%
Natural Gas (USD/MMBTU)			3.0				2.9				3.0				-1.4	%			0.7	%

Crude oil production in 1Q24 continued at very high levels, averaging 255 kbbl/d, on the back of shale growth (+3% q/q), offsetting the drop in conventional output. Additionally, 9% of conventional output came from tertiary production, growing by 34% y/y and minimizing the natural decline in mature fields.

Natural gas production increased by 6% q/q, mainly because 4Q23 was affected by a contraction in demand. NGL production also grew by 6% q/q, normalizing after the weather events that affected the clients of our subsidiary Mega in the City of Bahía Blanca.

4.2 DOWNSTREAM

As of 4Q23, the Company has decided to merge the Industrialization and Commercialization segments into a single Downstream segment. In addition, sales of natural gas were reallocated to the Gas and Power segment, restating comparative information corresponding to the period from 1Q22 to 3Q23. This reclassification is aligned with the new management structure and aims at simplifying the business reporting and maximizing synergies.

 

Page 7/14

 

Downstream Financials Unaudited Figures, in US$ million		1Q23				4Q23				1Q24				Y/Y Δ				Q/Q Δ
Diesel (third parties)			1,620				1,672				1,556				-4.0	%			-6.9	%
Gasoline (third parties)			892				943				1,022				14.5	%			8.4	%
Other domestic market			805				771				572				-28.9	%			-25.8	%
Export market			436				534				632				44.9	%			18.3	%
Revenues			3,753				3,920				3,782				0.8	%			-3.5	%
Depreciation & amortization			(139	)			(143	)			(137	)			-1.2	%			-4.2	%
Refining & Logistic costs			(377	)			(409	)			(338	)			-10.6	%			-17.5	%
Fuels imports (including jet fuel - third parties)			(343	)			(588	)			(99	)			-71.1	%			-83.2	%
Crude oil purchases (intersegment + third parties)			(1,825	)			(1,663	)			(1,965	)			7.7	%			18.2	%
Biofuel purchases (third parties)			(239	)			(153	)			(242	)			1.2	%			58.1	%
Agro products purchases (third parties)			(114	)			(73	)			(70	)			-38.3	%			-3.2	%
Stock variations			95				5				115				20.8	%			2053.9	%
Other			(557	)			(442	)			(489	)			-12.3	%			10.6	%
Operating income / (loss) before impairment of assets			254				455				558				119.5	%			22.6	%
Impairment of assets			—				—				—				N/A				N/A
Operating income / (loss)			254				455				558				119.5	%			22.6	%
Depreciation & amortization			139				143				137				-1.2	%			-4.2	%
EBITDA			393				598				695				77.0	%			16.2	%
Leasing			(24	)			(24	)			(23	)			-2.6	%			-0.6	%
Adjusted EBITDA			369				574				672				82.2	%			16.9	%
Inventories price effect of oil products			(58	)			40				103				N/A				158.1	%
Adjusted EBITDA excl. inventories price effect of oil products			427				535				569				33.3	%			6.4	%
CAPEX			214				324				206				-3.7	%			-36.4	%

Stock variations include price effects by (US$73) million in 1Q23, US$37 million for 4Q23 and US$102 million for 1Q24.

Revenues totaled US$3,782 million in 1Q24 (-4% q/q), mainly due to a local demand contraction of fuels, particularly diesel, and fertilizers, partially offset by higher local fuels prices and the growing oil exports to Chile.

Refining and logistics costs decreased by 18% q/q, primarily driven by the sharp devaluation that occurred in mid-December 2023, as well as lower transportation costs due to decreased volumes sold and efficiencies gained, such as tariff reduction.

Fuel imports declined by 83% q/q, mostly because 4Q23 was affected by record high local fuels demand and programmed stoppage at La Plata refinery, coupled with demand contraction and lower international price in 1Q24.

Crude oil purchases (including intersegment) increased by 18% q/q, mostly on the back of higher local price, besides a slight expansion in volume (higher processing level). Biofuel purchases grew 58% q/q, particularly because 4Q23 was affected by local supply constraints of biodiesel, while bioethanol was similar to 4Q23.

Adjusted EBITDA, excluding inventories price effect of oil products, totaled US$569 million (+6% q/q), mainly due to higher local fuels prices, combined with lower cost pressure after devaluation, partially offset by local crude oil price hike and lower FX regime for exporters.

Adjusted EBITDA of the Refining & Marketing business, in unit terms, reached US$19.1/bbl in 1Q24, compared to US$16.8/bbl reported in 1Q23.

CAPEX totaled US$206 million (-36% q/q): 69% refining, 15% midstream oil and 16% logistics.

In our refineries, during 1Q24 CAPEX was allocated in the following main projects:

 

•

New fuel specifications project including the construction of a new diesel oil hydrotreatment unit at Luján de Cuyo refinery and a gasoline hydrotreatment plant and revamping of existing gasoline units at La Plata refinery, expected to be operational by 2Q24 and 4Q25, respectively.

 

•

Revamping of topping units at Luján de Cuyo and Plaza Huincul refineries.

 

•

Works for the connection of new areas and the expansion of storage capacity related to La Amarga Chica-Puesto Hernández pipeline, which is expected to be completed by 2Q24 and will increase the evacuation of crude oil from our core hub blocks to the northern of the Neuquén Province, to be either exported to Chile through the Trans-Andean Oil Pipeline or re-directed to our Lujan de Cuyo refinery.

 

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In our midstream oil business unit, during 1Q24 the Company continued making progress in the main projects aimed at unlocking the evacuation capacity of the Neuquina basin:

 

•

Expansion of the existing system to the Atlantic: our subsidiary Oldelval is expected to reach a total evacuation capacity of 345 Kbbl/d by 2025. In addition, OTE continued working the construction of two new storage facilities of 50 Km3 each and the revamping of the export terminal at Puerto Rosales.

 

•

Evacuation to the Pacific: the successful reactivation of the Trans-Andean pipeline in 2023, together with the Vaca Muerta North pipeline, operational since last November, allowed us to export 23 kbbl/d of Medanito oil to Chile in 1Q24 (+22% q/q), expecting further increase in the coming months.

 

•

New Evacuation to the Atlantic: regarding the Vaca Muerta South project, we achieved solid progress on the engineering process for the new pipeline and export terminal, obtaining the construction permits for the first tranche of 127 km that will connect Loma Campana to Allen, as well as the environmental permits for the full project.

 

Downstream Operating data Unaudited Figures		1Q23				4Q23				1Q24				Y/Y Δ				Q/Q Δ
Crude processed (Kbbld)			307.2				289.8				301.1				-2.0	%			3.9	%
Refinery utilization (%)			93.6	%			88.3	%			91.8	%			-185bps				346bps
Nominal capacity at 328.1 Kbbl/d since 1Q21.
Sales volume to third parties (YPF stand alone)
Sales of refined products (Km3)			4,790				5,152				4,692				-2.1	%			-8.9	%
Total domestic market			4,346				4,675				4,140				-4.7	%			-11.4	%
of which Gasoline			1,515				1,618				1,512				-0.2	%			-6.6	%
of which Diesel			2,052				2,312				1,977				-3.6	%			-14.5	%
Total export market			444				477				551				24.3	%			15.6	%
Sales of petrochemical products (Ktn)			141				126				152				7.9	%			20.6	%
Domestic market			83				57				65				-21.7	%			14.8	%
Export market			58				70				87				50.3	%			25.4	%
Sales of fertilizers, grain and flours (Ktn)			215				252				202				-6.1	%			-19.6	%
Domestic market			206				252				140				-31.9	%			-44.3	%
Export market			9				0				62				565.4	%			N/A
Net average prices
Gasoline (USD/m3) (domestic market)			536				532				622				16.2	%			17.0	%
Diesel (USD/m3) (domestic market)			745				683				745				0.1	%			9.2	%
Petrochemical & others refined products (USD/bbl)			86				78				71				-16.7	%			-8.3	%

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

Crude oil processed stood at 301 Kbbl/d in 1Q24 (+4% q/q), as 4Q23 was impacted by maintenance stoppages at La Plata refinery. However, interannually, it decreased by 2% as in 1Q24 La Plata refinery was also affected by unavailability of OTE’s terminal to deliver crude oil, in addition to heavy rains and flooding in nearby areas. This effect was partially offset by better performance at Luján de Cuyo refinery, which during last March reached the highest monthly processing mark in its history. Consequently, the Company recorded a refinery utilization of 92% in 1Q24.

Domestic fuels sales volumes decreased by 11% q/q, driven by a decrease of 14% and 7% in diesel and gasoline demand, respectively, on the back of retail demand contraction and lower seasonal diesel volumes. Interannually, local fuels sales dropped by 2%, especially on the back of a 4% decline in diesel demand, affected by lower industrial and agro business activity. Nonetheless, the Company gained local fuels market share to almost 60%, as Argentina’s total fuels market contraction was even further (-6%).

Petrochemicals volumes grew by 21% q/q, primarily because 4Q23 was affected by a lower methanol demand for the biofuels market.

 

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