Form 6-K
Table of Contents

 

 

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, 2016

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  x            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   x

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   x

 

 

 


Table of Contents

YPF Sociedád Anonima

TABLE OF CONTENTS

 

ITEM

1 Translation of Consolidated Results Q1 2016.


Table of Contents

LOGO

 

YPF S.A.

Consolidated Results

Q1 2016


Table of Contents
LOGO    Consolidated Results Q1 2016

 

CONTENT

 

1.

   MAIN MILESTONES AND ECONOMIC MAGNITUDES FOR Q1 2016      3   

2.

   ANALYSIS OF RESULTS FOR Q1 2016      4   

3.

   ANALYSIS OF OPERATING RESULTS BY BUSINESS SEGMENT FOR Q1 2016      6   
   3.1 UPSTREAM      6   
   3.2 DOWNSTREAM      9   
   3.3 CORPORATE AND OTHERS      11   
   3.4 RELATED COMPANIES      11   

4.

   LIQUIDITY AND SOURCES OF CAPITAL      11   

5.

   TABLES AND NOTES      13   
  

Q1 2016 Results

     13   
   5.1 CONSOLIDATED STATEMENT OF INCOME YPF SOCIEDAD ANONIMA AND CONTROLLED COMPANIES      14   
   5.2 CONSOLIDATED BALANCE SHEET YPF SOCIEDAD ANONIMA AND CONTROLLED COMPANIES      15   
   5.3 CONSOLIDATED STATEMENT OF CASH FLOW YPF SOCIEDAD ANONIMA AND CONTROLLED COMPANIES      16   
   5.4 CONSOLIDATED BUSINESS SEGMENT INFORMATION      17   
   5.5 MAIN FINANCIAL MAGNITUDES IN U.S. DOLLARS      18   
  

5.6 MAIN PHYSICAL MAGNITUDES

     19   

 

2


Table of Contents
LOGO    Consolidated Results Q1 2016

 

Adjusted EBITDA for Q1 2016 was Ps 12.3 billion, 22.4% higher than Q1 2015.

 

         Q1
2015
     Q4
2015
     Q1
2016
     Var.%
Q1 16 /Q1 15
 

Revenues

(Million Ps)

       34,702         40,946         46,934         35.2

Operating income

(Million Ps)

       4,469         910         1,618         -63.8

Net income

(Million Ps)

       2,109         -1,865         855         -59.5

Adj. EBITDA

(Million Ps)

       10,209         11,589         12,493         22.4

Earnings per share

(Ps per Share)

       5.42         -4.32         2.54         -53.1

Capital expenditures

(Million Ps)

       12,351         18,322         14,741         19.4

Adjusted EBITDA = Net income attributable to shareholders + Net income (loss) for non-controlling interest - Deferred income tax - Income tax - Financial income (losses) gains on liabilities - Financial income gains (losses) on assets - Income on investments in companies + Depreciation of fixed assets + Amortization of intangible assets + Unproductive exploratory drillings.

(Amounts are expressed in billions of Argentine pesos, except where indicated)

 

1. MAIN MILESTONES AND ECONOMIC MAGNITUDES FOR Q1 2016

 

    Revenues for Q1 2016 were Ps 46.9 billion, 35.2% higher than Q1 2015.

 

    Operating income for Q1 2016 was Ps 1.6 billion, 63.8% lower than Q1 2015. Adjusted EDITDA for Q1 2016 was Ps 12.5 billion, 22.4% higher than Q1 2015.

 

    Net income for Q1 2016 was Ps 0.9 billion, 59.5% lower than the Ps 2.1 billion recorded for Q1 2015.

 

    Hydrocarbon production for Q1 2016 was 582.3 Kboed, similar to Q1 2015. Natural gas production for Q1 2016 was 44.0 Mm3d, 1.1% higher than Q1 2015. Crude oil production for Q1 2016 reached 249.0 Kbbld, 0.8% higher than Q1 2015. NGL production for Q1 2016 was 56.3 Kbbld, 6.0% lower than Q1 2015.

 

    Refinery processing levels in the Downstream business segment for Q1 2016 were 92.1%, 1.9% lower than Q1 2015.

 

    Capital expenditures in fixed assets for Q1 2016 were Ps 14.7 billion, 19.4% higher than Q1 2015.

 

3


Table of Contents
LOGO    Consolidated Results Q1 2016

 

2. ANALYSIS OF RESULTS FOR Q1 2016 

Revenues for Q1 2016 were Ps 46.9 billion, 35.2% higher than Q1 2015, due primarily to the following factors:

 

    Natural gas revenues increased Ps 4.1 billion, due to a 74.0% increase in prices in Argentine pesos and a 0.3% decrease in sales volumes.

 

    Diesel revenues increased Ps 2.5 billion, due to a 23.5% increase in diesel mix prices against a 2.7% decrease in sales volumes, although sales volumes of Eurodiesel, a premium diesel product, increased 12.9%.

 

    Gasoline revenues increased Ps 2.4 billion, due to a 24.9% increase in average prices and a 3.0% increase in sales volumes, including a 6.0% increase in sales volumes of Infinia gasoline.

 

    Fuel oil revenues increased Ps 1.1 billion, due to a 57.1% increase in prices in Argentine pesos with similar sales volumes.

 

    Exports of flour, oil and grains increased Ps 0.3 billion, due to a 9.1% increase in sales volumes and a 38.3% increase in prices in Argentine pesos.

Cost of sales for Q1 2016 was Ps 40.1 billion, 53.9% higher than Q1 2015. This includes a 51.6% increase in production costs and a 50.4% increase in purchases. This increase was driven by the following factors:

a) Costs of production:

 

    Depreciation of fixed assets increased Ps 4.8 billion, due to increased investments in assets and greater appreciation based on their valuation in U.S. dollars, which is the functional currency of the company.

 

    Lifting costs increased Ps 1.9 billion, considering a 28.1% increase in the unit indicator in Argentine peso terms.

 

    Royalty payments increased Ps 1.5 billion. Of this increase, Ps 1.0 billion was related to an increase in royalties for crude oil production and Ps 0.5 billion was related to an increase in royalties for natural gas production.

 

    Transportation costs increased Ps 0.6 billion, mainly due to increases in rates produced during 2015.

 

    Production costs related to refining costs increased Ps 0.4 billion, due to inflation and increased expenses for materials, parts, electricity, other supplies and fuel. As a result, and considering the slight decrease in volumes processed, refining costs in Q1 2016 were 29.5% higher than Q1 2015.

b) Purchases:

 

    Crude oil purchases from third parties increased Ps 1.2 billion, due to a 2.4% increase in volumes purchased and a 45.2% increase in the Argentine peso purchase price.

 

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LOGO    Consolidated Results Q1 2016

 

    FAME and ethanol biofuel purchases increased Ps 0.6 billion, due to higher prices for FAME and ethanol biofuel and a 9.1% increase in volumes purchased of ethanol biofuel, which was partially offset by a 15.6% decrease in volumes purchased of FAME.

 

    Imports of gasoline, diesel and jet fuel decreased Ps 62 million, due to lower volumes purchased of diesel and jet fuel, which was partially offset by greater volumes purchased of gasoline.

 

    Cost of sales was negatively affected in Q1 2016 compared to Q1 2015 by a decrease in the insurance accrual related to the loss incurred at the La Plata refinery in April 2013, of which Ps 0.6 billion was recorded as a lower cost of purchases.

Selling expenses for Q1 2016 were Ps 3.0 billion, 17.5% higher than Q1 2015. This was driven primarily by increases in domestic Argentine transport expenses, primarily due to higher rates paid for domestic transport of fuels, increases in personnel costs and fixed asset depreciation. This was partially offset by lower tax withholdings on exports, due to a fall of international prices and a decrease in the provision for doubtful accounts.

Administration expenses for Q1 2016 were Ps 1.5 billion, 24.0% higher than Q1 2015. The increase was principally due to higher personnel expenses and higher IT costs.

Exploration expenses for Q1 2016 were Ps 0.5 billion, 137.7% higher than Q1 2015. This change was due to greater expenses of Ps 0.1 billion for geological and geophysical studies, relating primarily to seismic survey studies in the provinces of Santa Cruz and Chubut. Losses from unproductive exploratory wells increased Ps 81 million during Q1 2016 compared to Q1 2015.

Other operating results, net, for Q1 2016 were a loss of Ps 0.2 billion, which was similar to Q1 2015.

Financial results for Q1 2016 were Ps 4.0 billion, compared to a loss of Ps 0.4 billion for Q1 2015. This change was driven primarily by greater positive foreign exchange rates on net liabilities in Argentine pesos of Ps 6.8 billion, generated by greater depreciation of the Argentine peso in Q1 2016 compared to Q1 2015. Interest expenses also increased Ps 2.4 billion, due to increased levels of debt and higher interest rates.

Income tax for Q1 2016 was Ps 4.9 billion, 151.8% higher than Q1 2015. This was due primarily to greater deferred tax expenses of Ps 4.3 billion, which was related to the substantially higher difference in value in Argentine peso terms of fixed assets generated in Q1 2016 compared to Q1 2015 as a result of greater devaluation of the Argentine peso in Q1 2016, given the functional currency of the company. This was partially offset by a decrease in current income tax of Ps 1.4 billion.

Net income for Q1 2016 was Ps 0.9 billion, 59.5% lower than Q1 2015.

Capital expenditures in fixed assets for Q1 2016 were Ps 14.7 billion, 19.4% higher than Q1 2015.

 

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LOGO    Consolidated Results Q1 2016

 

3. ANALYSIS OF OPERATING RESULTS BY BUSINESS SEGMENT FOR Q1 2016

3.1 UPSTREAM

 

         Q1
2015
     Q4
2015
     Q1
2016
     Var.%
Q1 16 /Q1 15
 

Operating income

(Million Ps)

       2,260         570         4,441         96.5

Revenues

(Million Ps)

       18,575         21,664         29,330         57.9

Crude oil production

(Kbbld)

       246.9         252.4         249.0         0.8

NGL production

(Kbbld)

       59.9         53.9         56.3         -6.0

Gas production

(Mm3d)

       43.6         43.8         44.0         1.1

Total production

(Kboed)

       580.8         581.9         582.3         0.3

Exploration costs

(Million Ps)

       191         713         454         137.7

Capital expenditures

(Million Ps)

       10,701         14,477         12,255         14.5

Depreciation

(Million Ps)

       4,788         6,631         9,096         90.0

Realization Prices

             

Crude oil prices in domestic market

Period average (USD/bbl)

       68.8         63.5         61.9         -10.0

Average gas price

(USD/Mmbtu)

       4.53         4.45         4.71         4.1

Operating income for the Upstream business segment for Q1 2016 was Ps 4.4 billion, 96.5% higher than Q1 2015.

Revenues were Ps 29.3 billion for Q1 2016, 57.9% higher than Q1 2015, due primarily to the following factors:

 

    Crude oil revenues increased Ps 6.4 billion, an increase of 47.8%, due to a 47.7% increase in Argentine peso terms of the transfer price between the Upstream business segment and the Downstream business segment, while volumes transferred between business segments and to third parties remained stable.

 

    Natural gas revenues increased Ps 4.1 billion, due to a 74.0% increase in prices in Argentine peso terms, which offset a 0.3% drop in sales volumes.

The price obtained in U.S. dollars for crude oil in the local market for Q1 2016 decreased 10.0% to US$61.90/barrel. The price obtained in U.S. dollars for natural gas was US$4.71/Mmbtu, 4.1% higher than Q1 2015.

 

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LOGO    Consolidated Results Q1 2016

 

Hydrocarbon production for Q1 2016 was 582.3 Kboed, which was similar to Q1 2015. Crude oil production for Q1 2016 was 249.0 Kbbld, a 0.8% increase. Natural gas production for Q1 2016 was 44.0 Mm3d, a 1.1% increase. NGL production for Q1 2016 was 56.3 Kbbld, a 6.0% decrease. Production in Q1 2015 reflects the retroactive application of the agreement with Petrolera Pampa executed in Q2 2015, which assigned a portion of the production from the Rincón del Mangrullo area.

Unconventional hydrocarbon production for Q1 2016 was 49.8 Kboed, including 24.1 Kbbld of crude oil, 11.6 Kbbld of NGL and 2.2 Mm3d of natural gas, of which YPF consolidates approximately 50%. During Q1 2016, 34 wells were put in production targeting the Vaca Muerta formation, for a total of 456 wells at the end of Q1 2016, including 11 active drilling rigs and 11 workovers.

With respect to tight gas activity: (i) in the Lajas formation, 12 wells were put in production during Q1 2016, and average natural gas production was 4.3 Mm3d and (ii) in the Mulichinco formation in the Rincón del Mangrullo area, natural gas production for YPF was 1.4 Mm3d, and 16 wells were put in production. During April 2016, the new compression system for the Rincón del Mangrullo area commenced operations, which allowed production to increase to 4.0 Mm3d.

Production costs for Q1 2016 were Ps 24.3 billion, 53.3% higher than Q1 2015, mainly due to the following:

 

    Depreciation of fixed assets increased Ps 4.3 billion;

 

    Lifting costs increased Ps 1.9 billion, reflecting a 28.1% increase in the unit indicator in Argentine peso terms;

 

    Royalties increased Ps 1.5 billion. Of this increase, Ps 1.0 billion was related to higher royalties for crude oil production and Ps 0.5 billion was related to higher royalties for natural gas production; and

 

    Environmental remediation provisions increased Ps 99 million.

Exploration costs for Q1 2016 were Ps 0.5 billion, 137.7% higher than Q1 2015. Expenses for geological and geophysical studies relating primarily to seismic survey studies in the provinces of Santa Cruz and Chubut increased Ps 0.1 billion. Losses from unproductive exploratory wells increased Ps 81 million for Q1 2016 compared to Q1 2015.

Unit cash costs in U.S. dollars decreased 18.9% to US$19.60/boe for Q1 2016 from US$24.20/boe for Q1 2015, including taxes of US$6.10/boe and US$6.80/boe, respectively. In turn, the average lifting cost for YPF was US$11.10/boe for Q1 2016, 27.7% lower than US$14.50/boe for Q1 2015.

CAPEX

Capital expenditures for the Upstream business segment for Q1 2016 were Ps 12.3 billion, 14.5% higher than Q1 2015.

Of these capital expenditures, 66% were invested in drilling activities, 15% in facilities, 11% in workover activities and the remaining 8% in exploration and other activities in the Upstream business segment.

In the Neuquina basin area, activities for Q1 2016 were focused on the development of the Loma Campana, Aguada Toledo - Sierra Barrosa (Lajas), Rincón del Mangrullo, El Orejano, La Amarga Chica, Loma La Lata (Sierras Blancas) Chachahuen and Cañadón Amarillo blocks. Development activities continued at Cuyana basin, mainly in the Barrancas, La Ventana and Vizcacheras blocks. In the Golfo San Jorge basin, most activity was concentrated in Cañadón de la Escondida, El Guadal and Cañadón Yatel areas, in the province of Santa Cruz, and the Manantiales Behr and El Trébol-Escalante areas in the province of Chubut.

 

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LOGO    Consolidated Results Q1 2016

 

Exploration activities for Q1 2016 covered the Neuquina and Golfo San Jorge basins. In the Neuquina basin, exploratory activity targeted both conventional and unconventional resources. Activity targeting conventional formations focused on the Payún Oeste, Los Caldenes, Bajo del Piche, Chasquivil, Cajón de los Caballos and Chachahuen blocks. Unconventional activity focused on the Cerro Arena and Narambuena blocks. In the Golfo San Jorge basin, activity focused on the evaluation of deep targets in the west flank of the Cañadón de la Escondida–Las Heras block and in the north flank of the Manantiales Behr block.

During Q1 2016, nine exploratory wells were completed.

 

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LOGO    Consolidated Results Q1 2016

 

3.2 DOWNSTREAM

 

         Q1
2015
    Q4
2015
    Q1
2016
    Var.%
Q1 16 /Q1 15
 

Operating income

(Million Ps)

       1,494        -435        -794        -153.1

Revenues

(Million Ps)

       31,878        36,665        40,933        28.4

Sales of refined products in domestic market

(Km3)

       4,104        4,218        4,035        -1.7

Exportation of refined products

(Km3)

       449        382        493        9.8

Sales of petrochemical products in domestic market (*)

(Ktn)

       179        193        188        5.0

Exportation of petrochemical products

(Ktn)

       69        59        27        -60.9

Crude oil processed

(Kboed)

       300        294        294        -1.9

Refinery utilization

(%)

       94     92     92     -1.9

Capital Expenditures

(Million Ps)

       1,436        3,086        2,091        45.6

Depreciation

(Million Ps)

       693        919        1,290        86.1

Average domestic market gasoline price (**)

(USD/m3)

       748        722        564        -24.6

Average domestic market diesel price (**)

(USD/m3)

       754        728        559        -25.8

 

(*) Fertilizer sales not included
(**) Price net of deductions and commissions before tax

Operating income for the Downstream business segment for Q1 2016 was a loss of Ps 0.8 billion compared to a gain of Ps 1.5 billion in Q1 2015.

Revenues were Ps 40.9 billion, 28.4% higher than Q1 2015, due primarily to the following:

 

    Diesel revenues increased Ps 2.5 billion, due to a 23.5% increase in diesel mix prices against a 2.7% decrease in sales volumes, although sales volumes of Eurodiesel, a premium diesel product, increased 12.9%.

 

    Gasoline revenues increased Ps 2.4 billion, due to a 24.9% increase in prices and a 3.0% increase in sales volumes, including a 6.0% increase in sales volumes of Infinia gasoline.

 

    Fuel oil revenues in the domestic Argentine market increased Ps 1.1 billion, due to a 67.3% increase in prices and a 1.6% increase in sales volumes.

 

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LOGO    Consolidated Results Q1 2016

 

    Petrochemical product revenues in the domestic Argentine market increased Ps 0.1 billion, due to a 12.1% increase in prices in Argentine peso terms and an increase in sales volumes.

 

    Exports increased Ps 0.5 billion, or 16.3%, compared to Q1 2015, due to higher prices in Argentine pesos driven by greater devaluation of the Argentine peso in Q1 2016, which offset a decrease in export volumes. Exports of flour, oil and grains increased Ps 0.9 billion, due to a 9.1% increase in sales volumes and a 38.3% increase in prices in Argentine pesos.

Cost of sales and operating expenses for Q1 2016 increased Ps 11.3 billion, or 37.3% compared to Q1 2015, due primarily to the following factors:

 

    Crude oil purchases increased Ps 7.4 billion, due to an increase in prices in Argentine pesos of crude oil purchased and no significant difference in volumes purchased. Purchase prices in the Upstream business segment in Argentine peso terms increased 47.7%, and purchase prices from other producers of crude oil similarly increased 45.2%.

 

    FAME and ethanol biofuel purchases increased Ps 0.6 billion, due to higher FAME and ethanol biofuel prices and a 9.1% increase in volumes purchased of ethanol biofuel and a 15.6% decrease in volumes purchased of FAME.

 

    Diesel, gasoline and jet fuel imports decreased Ps 62 million, due to lower volumes purchased of diesel and jet fuel, which was partially offset by higher volumes purchased of gasoline.

 

    In Q1 2015, YPF accrued an insurance payment of Ps 0.5 billion related to the loss incurred by the La Plata refinery in April 2013, which was recorded primarily as a decrease to cost of purchases.

 

    Fixed asset depreciation increased Ps 0.6 billion.

 

    Production costs related to refining costs increased Ps 0.4 billion, due to inflation and increased expenses for materials, parts, electricity, other supplies and fuel. As a result and considering the slight decrease in volumes processed, refining costs in Q1 2016 were 29.5% higher than Q1 2015.

 

    With respect to the valuation of crude oil and products stocks for this business segment, in Q1 2015 an impairment was recorded for the Exploration and Production business segment due to the decline of the domestic crude oil price during that period as a consequence of an agreement between local oil producers and refiners to reduce the local Argentine price of a barrel of oil by approximately US$7.00 from January 2015, which substantially impacted the results of this business segment. A similar agreement was reached in December 2015 that impacted the results of this business segment for Q4 2015 but not for Q1 2016.

 

    Marketing expenses increased Ps 0.5 billion, due to higher transportation costs related to an increase in domestic Argentine fuel transportation rates and increased depreciation costs.

 

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LOGO    Consolidated Results Q1 2016

 

The volume of crude oil processed in Q1 2016 was 294 Kbbld, 1.9% lower than Q1 2015, mainly due to the scheduled shutdown of a topping unit at the La Plata refinery.

CAPEX

Cumulative capital expenditures for the Downstream business segment for Q1 2016 were Ps 2.1 billion, a 45.6% increase compared to Q1 2015.

The construction of the new Coke Plant is 97.84% complete as of the end of Q1 2016 and is expected to commence operations in the second half of 2016. In addition, improvements to the Topping III unit in Mendoza have progressed, and work to improve YPF’s logistical facilities and optimize safety and environmental performance has continued.

3.3 CORPORATE AND OTHERS

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

Corporate operating income for Q1 2016 was a loss of Ps 0.5 billion, with no significant variations to highlight with respect to Q1 2015.

Consolidation adjustments to eliminate results among business segments not transferred to third parties were negative Ps 1.5 billion in Q1 2016, due to the widening gap between prices for transfers between business segments and replacement costs for the company’s inventory. These adjustments were positive Ps 1.3 billion in Q1 2015 because the price gap was narrower during that period.

3.4 RELATED COMPANIES

Results from related companies for Q1 2016 were a gain of Ps 97 million, compared to a loss of Ps 38 million for Q1 2015. This change was primarily due to improved results from Central Dock Sud and Refinor, which was partially offset by the operating loss reported by Profertil.

4. LIQUIDITY AND SOURCES OF CAPITAL

Net cash flows provided by operating activities for Q1 2016 were Ps 10.8 billion, 9.3% lower than Q1 2015. This decrease of Ps 1.1 billion was driven by an increase in working capital expenses despite a Ps 2.3 billion increase in adjusted EBITDA and a Ps 0.6 billion increase in insurance collections for lost profits. This increase in working capital was due to an accrual of accounts receivable mainly from the program to stimulate the injection of surplus natural gas.

Net cash flows provided by financing activities increased Ps 11.2 billion during Q1 2016 compared to Q1 2015, mainly generated by increased debt incurrence and refinancing of Ps 13.3 billion, which was partially offset by higher interest payments of Ps 2.1 billion.

Net cash flows provided by operating activities were directed to investing activities, which were Ps 17.0 billion, or 8.5% higher than Q1 2015, mainly due to an increase in investments in fixed and intangible assets.

 

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LOGO    Consolidated Results Q1 2016

 

The previously discussed cash flow generation contributed to a Ps 26.2 billion cash and cash equivalent position as of March 31, 2016. The main debt issuances in 2016 consisted of three new series of negotiable obligations for a total of Ps 1.5 billion and US$1.0 billion. Total debt in U.S. dollars was US$9.2 billion, net debt was US$7.4 billion and the net debt/EBITDA(1) ratio was 1.53x. The proforma ratio, including receivables for 2015 from the Argentine federal government of US$669 million dollars, was 1.39x.

The average interest rate for debt denominated in Argentine pesos in Q1 2016 was 28.67%, while the average interest rate for debt denominated in U.S. dollars was 7.75%.

YPF negotiable obligations issued during Q1 2016 and thereafter are detailed below:

 

YPF Note

   Amount      Interest Rate     Maturity  

Series XLV

     ARS 150 million         BADLAR + 4.00     18 months   

Series XLVI

     ARS 1,350 million         BADLAR + 6.00     60 months   

Series XLVII

     USD 1,000 million         8.500     60 months   

Series XLVIII (Q2 2016)

     USD 45.8 million         8.250     48 months   

Series XLIX (Q2 2016)

     ARS 534.9 million         BADLAR + 6.00     48 months   

 

(1) Net Debt: US$7,429 million/EBITDA LTM: US$4,855 million = 1.53x.

 

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LOGO    Consolidated Results Q1 2016

 

5. TABLES AND NOTES

Q1 2016 Results

 

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5.1 CONSOLIDATED STATEMENT OF INCOME

YPF SOCIEDAD ANONIMA AND CONTROLLED COMPANIES

(Unaudited, figures expressed in millions of pesos)

 

         Q1
2015
     Q4
2015
     Q1
2016
     Var.%
Q1 16 /Q1 15
 

Revenues

       34,702         40,946         46,934         35.2

Costs of sales

       (26,076      (32,781      (40,131      53.9
    

 

 

    

 

 

    

 

 

    

 

 

 

Gross profit

       8,626         8,165         6,803         (21.1 %) 
    

 

 

    

 

 

    

 

 

    

 

 

 

Selling expenses

       (2,592      (3,034      (3,045      17.5

Administration expenses

       (1,198      (1,729      (1,486      24.0

Exploration expenses

       (191      (713      (454      137.7

Other operating results, net

       (176      (1,779      (200      13.6
    

 

 

    

 

 

    

 

 

    

 

 

 

Operating income

       4,469         910         1,618         (63.8 %) 
    

 

 

    

 

 

    

 

 

    

 

 

 

Income on investments in companies

       (38      266         97         (355.3 %) 

Net Financial Results:

       (385      14,166         4,018         (1,143.6 %) 
    

 

 

    

 

 

    

 

 

    

 

 

 

Net income before income tax

       4,046         15,342         5,733         41.7
    

 

 

    

 

 

    

 

 

    

 

 

 

Income tax

       (1,937      (17,207      (4,878      151.8
    

 

 

    

 

 

    

 

 

    

 

 

 

Net Income for the period

       2,109         (1,865      855         (59.5 %) 
    

 

 

    

 

 

    

 

 

    

 

 

 

Net income (loss) for noncontrolling interest

       (18      (170      (141   
    

 

 

    

 

 

    

 

 

    

 

 

 

Net income for shareholders of the parent company

       2,127         (1,695      996         (53.2 %) 
    

 

 

    

 

 

    

 

 

    

 

 

 

Earnings per share, basic and diluted

       5.42         (4.32      2.54         (53.1 %) 
    

 

 

    

 

 

    

 

 

    

 

 

 

Other comprehensive Income

       2,431         35,529         15,407         533.8
    

 

 

    

 

 

    

 

 

    

 

 

 

Total comprehensive income for the period

       4,540         33,664         16,262         258.2
    

 

 

    

 

 

    

 

 

    

 

 

 
             
    

 

 

    

 

 

    

 

 

    

 

 

 

Adj. EBITDA (*)

       10,209         11,589         12,493         22.4
    

 

 

    

 

 

    

 

 

    

 

 

 

Note: Information reported in accordance with International Financial Reporting Standards (IFRS), except adjusted EBITDA.

 

(*) Adjusted EBITDA = Net income attributable to shareholders + Net income (loss) for non-controlling interest - Deferred income tax - Income tax - Financial income (losses) gains on liabilities - Financial income gains (losses) on assets - Income on investments in companies + Depreciation of fixed assets + Amortization of intangible assets + Unproductive exploratory drillings.

 

14


Table of Contents
LOGO    Consolidated Results Q1 2016

 

5.2 CONSOLIDATED BALANCE SHEET

YPF SOCIEDAD ANONIMA AND CONTROLLED COMPANIES

(Q1 2016 figures unaudited, figures expressed in millions of pesos)

 

     12/31/2015      03/31/2016  

Noncurrent Assets

     

Intangible assets

     7,279         8,258   

Fixed assets

     270,905         307,964   

Investments in companies

     4,372         4,839   

Deferred income tax assets

     954         736   

Other receivables and advances

     2,501         2,582   

Trade receivables

     469         378   
  

 

 

    

 

 

 

Total Non-current assets

     286,480         324,757   
  

 

 

    

 

 

 

Current Assets

     

Inventories

     19,258         20,555   

Other receivables and advances

     19,413         14,888   

Trade receivables

     22,111         30,756   

Investment in financial assets

     804         1,134   

Cash and equivalents

     15,387         26,163   
  

 

 

    

 

 

 

Total current assets

     76,973         93,496   
  

 

 

    

 

 

 

Total assets

     363,453         418,253   
  

 

 

    

 

 

 

Shareholders’ equity

     

Shareholders’ contributions

     10,349         10,389   

Reserves and unappropiated retained earnings

     110,064         126,467   

Noncontrolling interest

     48         (93
  

 

 

    

 

 

 

Total Shareholders’ equity

     120,461         136,763   
  

 

 

    

 

 

 

Noncurrent Liabilities

     

Provisions

     39,623         45,014   

Deferred income tax liabilities

     44,812         49,399   

Other taxes payable

     207         185   

Loans

     77,934         104,086   

Accounts payable

     625         633   
  

 

 

    

 

 

 

Total Noncurrent Liabilities

     163,201         199,317   
  

 

 

    

 

 

 

Current Liabilities

     

Provisions

     2,009         2,127   

Income tax liability

     1,487         1,587   

Other taxes payable

     6,047         5,309   

Salaries and social security

     2,452         2,033   

Loans

     27,817         30,912   

Accounts payable

     39,979         40,205   
  

 

 

    

 

 

 

Total Current Liabilities

     79,791         82,173   
  

 

 

    

 

 

 

Total Liabilities

     242,992         281,490   
  

 

 

    

 

 

 

Total Liabilities and Shareholders’ Equity

     363,453         418,253   
  

 

 

    

 

 

 

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

 

15


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LOGO    Consolidated Results Q1 2016

 

5.3 CONSOLIDATED STATEMENT OF CASH FLOW

YPF SOCIEDAD ANONIMA AND CONTROLLED COMPANIES

(Unaudited, figures expressed in millions of pesos)

 

   Q1
2015
    Q1
2016
 

Cash Flows from operating activities

    

Net income

     2,109        855   

Income from investments in companies

     38        (97

Depreciation of fixed assets

     5,564        10,534   

Amortization of intangible assets

     69        153   

Consumption of materials and fixed assets and intangible assets  retired, net of provisions

     592        1,183   

Income tax

     1,937        4,878   

Net increase in provisions

     903        1,092   

Interest, exchange differences and other

     485        (4,666

Stock compensation plan

     27        40   

Accrued insurance

     (511     —     

Changes in assets and liabilities:

    

Trade receivables

     388        (7,966

Other receivables and liabilities

     (548     4,518   

Inventories

     266        1,089   

Accounts payable

     1,015        878   

Other Taxes payable

     1,111        (760

Salaries and Social Securities

     (479     (419

Decrease in provisions from payments

     (393     (354

Dividends from investments in companies

     150        —     

Insurance charge for loss of profit

     —          607   

Income tax payments

     (792     (740
  

 

 

   

 

 

 

Net cash flows provided by operating activities

     11,931        10,825   
  

 

 

   

 

 

 

Cash flows from investing activities

    

Payments for investments:

    

Acquisitions of fixed assets and Intangible assets

     (15,628     (17,303

Contributions and acquisitions of interests in companies and UTEs

     (2     —     

Financial assets investments

     —          (13

Insurance charge for material damages

     —          355   
  

 

 

   

 

 

 

Net cash flows used in investing activities

     (15,630)        (16,961)   
  

 

 

   

 

 

 

Cash flows from financing activities

    

Payment of loans

     (4,632     (17,179

Payment of interests

     (1,379     (3,515

Proceeds from loans

     10,784        36,603   

Non controling interest contribution

     —          50   
  

 

 

   

 

 

 

Net cash flows provided by financing activities

     4,773        15,959   
  

 

 

   

 

 

 

Effect of changes in exchange rates on cash and  equivalents

     207        953   
  

 

 

   

 

 

 

Increase (Decrease) in Cash and Equivalents

     1,281        10,776   
  

 

 

   

 

 

 

Cash and equivalents at the beginning of the period

     9,758        15,387   

Cash and equivalents at the end of the period

     11,039        26,163   
  

 

 

   

 

 

 

Increase (Decrease) in Cash and Equivalents

     1,281        10,776   
  

 

 

   

 

 

 

COMPONENTS OF CASH AND EQUIVALENT AT THE END OF THE  PERIOD

    

Cash

     9,893        22,927   

Other Financial Assets

     1,146        3,236   
  

 

 

   

 

 

 

TOTAL CASH AND EQUIVALENTS AT THE END OF THE PERIOD

     11,039        26,163   
  

 

 

   

 

 

 

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

 

16


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LOGO    Consolidated Results Q1 2016

 

5.4 CONSOLIDATED BUSINESS SEGMENT INFORMATION

(Unaudited, figures expressed in millions of pesos)

 

Q1 2016

   Upstream      Downstream      Corporate and
Other
     Consolidation
Adjustments
     Total  

Revenues

     5,897         40,500         537         0         46,934   

Revenues from intersegment sales

     23,433         433         1,661         -25,527              
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Revenues

     29,330         40,933         2,198         -25,527         46,934   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Operating Income (loss)

     4,441         -794         -526         -1,503         1,618   

Investments in companies

     0         97         0         0         97   

Depreciation of fixed assets

     9,096         1,290         148         0         10,534   

Acquisitions of fixed assets

     12,255         2,091         395         0         14,741   

Assets

     242,076         139,059         38,849         -1,731         418,253   

Q1 2015

   Upstream      Downstream      Corporate and
Other
     Consolidation
Adjustments
     Total  

Revenues

     3,039         31,325         338         —           34,702   

Revenues from intersegment sales

     15,536         553         1,274         -17,363              
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Revenues

     18,575         31,878         1,612         -17,363         34,702   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Operating Income (loss)

     2,260         1,494         -548         1,263         4,469   

Investments in companies

     -1         -37         —           —           -38   

Depreciation of fixed assets

     4,788         693         83         —           5,564   

Acquisitions of fixed assets

     10,701         1,436         214         —           12,351   

Assets

     130,062         74,701         18,003         -1,392         221,374   

 

17


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LOGO    Consolidated Results Q1 2016

 

5.5 MAIN FINANCIAL MAGNITUDES IN U.S. DOLLARS

(Unaudited)

 

Million USD

   2015
Q1
     2014
Q4
     2016
Q1
     Var
Q1 16 /Q1 15
 

INCOME STATMENT

           

Revenues

     4,016         4,044         3,251         -19.1

Costs of sales

     -3,018         -3,238         -2,780         -7.9
  

 

 

    

 

 

    

 

 

    

 

 

 

Gross profit

     998         807         471         -52.8

Selling expenses

     -300         -300         -211         -29.7

Administration expenses

     -139         -171         -103         -25.8

Exploration expenses

     -22         -70         -31         42.3

Other expenses

     -20         -176         -14         -32.0
  

 

 

    

 

 

    

 

 

    

 

 

 

Operating income

     517         90         112         -78.3

Depreciation and impairment of fixed and intangible assets

     644         1,013         730         13.3

Amortization of intangible assets

     8         10         11         32.7

Unproductive exploratory drillings

     12         32         13         5.2
  

 

 

    

 

 

    

 

 

    

 

 

 

Adj. EBITDA (*)

     1,182         1,145         865         -26.8

UPSTREAM

           

Revenues

     2,150         2,140         2,032         -5.5

Operating income

     262         56         308         17.6

Depreciation

     554         655         630         13.7

Capital expenditures

     1,239         1,430         849         -31.5

DOWNSTREAM

           

Revenues

     3,690         3,622         2,835         -23.2

Operating income

     173         -43         -55         -131.8

Depreciation

     80         91         89         11.4

Capital expenditures

     166         305         145         -12.9

CORPORATE AND OTHER

           

Operating income

     -63         -125         -36         -42.6

Capital expenditures

     25         137         27         10.5

CONSOLIDATION ADJUSTMENTS

           

Operating income

     146         196         -104         -171.2

Average exchange rate for the period

     8.64         10.12         14.44      

NOTE: The calculation of the main financial figures in U.S. dollars is derived from the calculation of the financial results expressed in Argentine pesos using the average exchange rate for each period.

 

(*) Adjusted EBITDA = Net income attributable to shareholders + Net income (loss) for non-controlling interest - Deferred income tax - Income tax - Financial income (losses) gains on liabilities - Financial income gains (losses) on assets - Income on investments in companies + Depreciation of fixed assets + Amortization of intangible assets + Unproductive exploratory drillings.

 

18


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LOGO    Consolidated Results Q1 2016

 

5.6 MAIN PHYSICAL MAGNITUDES

(Unaudited)

 

          2015      2016  
     Unit    Q1      Q2      Q3      Q4      Cum. 2015      Q1  

Production

                    

Crude oil production

   Kbbl      22,252         22,736         22,934         23,218         91,139         22,656   

NGL production

   Kbbl      5,448         3,522         4,015         4,958         17,944         5,124   

Gas production

   Mm3      3,950         4,063         4,080         4,032         16,124         4,008   

Total production

   Kboe      52,541         51,808         52,611         53,532         210,492         52,986   
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Henry Hub

   USD/Mbtu      2.98         2.64         2.77         2.27         2.66         2.09   

Brent

   USD/Bbl      53.92         61.69         50.23         43.57         52.35         33.70   

Sales

                    

Sales of petroleum products

                    

Domestic market

                    

Gasoline

   Km3      1,246         1,171         1,208         1,269         4,894         1,283   

Diesel

   Km3      1,906         2,169         2,040         2,019         8,134         1,855   

Jet fuel and kerosene

   Km3      125         108         130         131         494         130   

Fuel Oil

   Km3      348         396         378         313         1,436         354   

LPG

   Km3      176         212         238         162         788         153   

Others (*)

   Km3      304         343         314         323         1,283         261   

Total domestic market

   Km3      4,104         4,399         4,308         4,218         17,029         4,035   

Export market

                    

Petrochemical naphtha

   Km3      18         12         7         19         56         0   

Jet fuel and kerosene

   Km3      122         127         130         132         511         121   

LPG

   Km3      149         52         42         94         337         117   

Bunker (Diesel and Fuel Oil)

   Km3      153         115         130         134         532         149   

Others (*)

   Km3      7         10         4         4         25         105   

Total export market

   Km3      449         316         314         382         1,461         493   

Total sales of petroleum products

   Km3      4,553         4,715         4,622         4,600         18,490         4,528   
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Sales of petrochemical products

                    

Domestic market

                    

Fertilizers

   Ktn      21         34         45         108         208         24   

Methanol

   Ktn      49         61         75         64         249         55   

Others

   Ktn      130         164         143         129         566         133   

Total domestic market

   Ktn      200         259         263         301         1,023         212   

Export market

                    

Methanol

   Ktn      41         36         54         20         151         2   

Others

   Ktn      28         50         33         39         150         25   

Total export market

   Ktn      69         86         87         59         301         27   

Total sales of petrochemical products

   Ktn      269         345         350         360         1,324         239   
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Sales of other products

                    

Grain, flours and oils

                    

Domestic market

   Ktn      30         31         13         15         89         9   

Export market

   Ktn      155         418         358         208         1,139         169   

Total Grain, flours and oils

   Ktn      185         449         371         223         1,228         178   
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Main products imported

                    

Gasolines and Jet Fuel

   Km3      20         22         43         36         120         50   

Diesel

   Km3      196         343         346         289         1,174         145   
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

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

 

19


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LOGO    Consolidated Results Q1 2016

 

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, 2015 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.

Investor Relations

E-mail: inversoresypf@ypf.com

Website: inversores.ypf.com

Macacha Güemes 515

C1106BKK Buenos Aires (Argentina)

Phone: 54 11 5441 1215

Fax: 54 11 5441 2113

 

20


Table of Contents

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 10, 2016     By:  

/s/ Diego Celaá

    Name:   Diego Celaá
    Title:   Market Relations Officer