YPF production increased 16% in the first quarter of 2022 and investments grow 50%

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YPF production increased 16% in the first quarter of 2022 and investments grow 50%

Buenos Aires — YPF S.A. (YPF), the Argentine energy and oil company that has the State as majority shareholder, recorded in the first quarter of 2022 Profits net losses of US$248 million ($26,000 million), which contrasts with the US$25 million ($2,247 million) of losses in the same period of 2021.

      • Gross profit: YPF’s adjusted EBITDA reached $972 million27% higher than the same period of the previous year.
      • Production: YPF’s total hydrocarbon production registered a 16% year-on-year increase and 5% compared to the previous quarter: crude oil production grew 7% and gas production increased 20% compared to the first quarter of 2021.
      • Investments: The company started the execution of its ambitious plan of investments of US$3.7 billion for the year 2022 and during the first quarter of the year it invested US$748 million, more than 50% compared to the same period in 2021.

Capital Expenditure and Flow

The capex, or investments in capital goods, for the first quarter of this year was US$748 million, 18% below the previous quarter but 53% above the capital expenditures of the first quarter of 2021.

Meanwhile, free cash flow was positive for the eighth consecutive quarter at US$391 million, which, according to the official statement, “allowed once again to reduce the company’s net debt by 359 million.” Bloomberg analysis highlighted that YPF has accumulated more than US$1.3 billion of liquidity and can easily meet its 2022 maturities.

“There is a potential for a bullish bias to capex thanks to healthy cash flow, and an expectation of a neutral or positive cash position this year,” He said CFO of the company, Alejandro Lewduring the first-quarter earnings call.

SEE MORE: Renewable energies in Argentina: YPF Luz inaugurated its third wind farm

gasoline price

On the price of fuel and the imbalances between local and international values, The CEO of YPF, Sergio Affronti, assured investors that “the recent increases in fuels have reduced the gap with international prices to 25%”.

Furthermore, he mentioned that “YPF will continue to seek a balance between avoiding distortions in global reference prices and the ability of Argentines to pay for fuel in a difficult macro context.”

“YPF’s fuel pricing policy may start to weigh on its ability to generate free cash flow as commodity prices rise in the second quarter,” a Bloomberg analysis noted.

imports

YPF continues to import fuel almost double its usual proportions, although according to Lew that cost is being partially offset by higher wholesale diesel and jet fuel prices, according to information from Bloomberg.

According to the CFO, YPF is in talks with external suppliers to its refineries for a 10% increase in crude prices at the end of the second quarter, compared to the end of the first quarter.

During the first quarter there were complaints from producers due to the lack of diesel Photographer: Anita Pouchard Serra/Bloombergdfd

Weeks ago, Pablo González, president of YPF, the company will achieve self-sufficiency by the end of next year, and thus it will be able to stop importing fuels to supply its own customers and service stations.

-With information from Bloomberg News

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