Ypf Sociedad Anonima 6-K, filed Aug 10, 2021
Ypf Sociedad Anonima (YPF)
About this 6-K
Ypf Sociedad Anonima filed this 6-K on August 10, 2021.
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 August, 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 ☒
Table of Contents
2Q21 YPF S.A CONSOLIDATED RESULTS
Table of Contents
| 3 | ||||
| 4 | ||||
| 6 | ||||
| 7 | ||||
| 7 | ||||
| 10 | ||||
| 13 | ||||
| 13 | ||||
| 14 | ||||
| 14 | ||||
| 14 | ||||
| 15 | ||||
| 17 | ||||
| 17 | ||||
| 18 | ||||
| 19 | ||||
| 21 | ||||
2
Table of Contents
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.
Profitability continued recovering, surpassing pre-COVID levels, with production expanding 6% q/q and meeting 1H21 guidance for both crude oil and natural gas.
| Summary Consolidated Financials Unaudited Figures, in US$ million |
2Q20 | 1Q21 | 2Q21 | Q/Q D | 1H20 | 1H21 | Y/Y D | |||||||||||||||||||||
| Revenues |
1,947 | 2,648 | 3,349 | 26.5 | % | 4,779 | 5,997 | 25.5 | % | |||||||||||||||||||
| EBITDA |
171 | 825 | 1,146 | 38.9 | % | 1,211 | 1,971 | 62.7 | % | |||||||||||||||||||
| Adjusted EBITDA |
28 | 767 | 1,084 | 41.4 | % | 879 | 1,851 | N.M | ||||||||||||||||||||
| Operating income before impairment of assets |
(532 | ) | 78 | 310 | N.M | (291 | ) | 388 | N.M | |||||||||||||||||||
| Operating income |
(1,382 | ) | 78 | 310 | N.M | (1,141 | ) | 388 | N.M | |||||||||||||||||||
| Net income before impairment of assets |
(621 | ) | (25 | ) | (492 | ) | N.M | (518 | ) | (517 | ) | -0.1 | % | |||||||||||||||
| Net income |
(1,258 | ) | (25 | ) | (492 | ) | N.M | (1,155 | ) | (517 | ) | -55.2 | % | |||||||||||||||
| EPS |
(3.19 | ) | (0.06 | ) | (1.22 | ) | N.M | (2.93 | ) | (1.28 | ) | -56.3 | % | |||||||||||||||
| Capex |
162 | 487 | 580 | 19.2 | % | 759 | 1,067 | 40.6 | % | |||||||||||||||||||
| FCF |
61 | 284 | 311 | 9.4 | % | (24 | ) | 595 | N.M | |||||||||||||||||||
| Cash and cash equivalents |
1,303 | 995 | 935 | -6.0 | % | 1,303 | 935 | -28.2 | % | |||||||||||||||||||
| Total debt |
8,690 | 7,747 | 7,434 | -4.0 | % | 8,690 | 7,434 | -14.4 | % | |||||||||||||||||||
EBITDA = Operating income + Depreciation of PP&E + Depreciation of the right of use assets + Amortization of intangible assets + Unproductive exploratory drillings + (Reversal) / Deterioration of PP&E. Adjusted EBITDA = EBITDA that excludes IFRS 16 and IAS 29 effects +/- one-off items. 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
| • | Profitability continued improving with Adjusted EBITDA increasing 41.4% q/q (+14.3% compared to pre-pandemic levels of 2Q19). |
| • | Strong pricing environment across the board, driven by higher fuel prices at the pump (almost back at 2019 levels), better prices for most of our other refined and petrochemical products (highly correlated to international prices of oil and its derivatives), and improved natural gas prices (resulting from our participation in the new Plan Gas and better contractual negotiations with other clients). |
| • | Oil and gas production expanded by 5.5% sequentially despite the blockade in the Province of Neuquén that affected our operations for 20 days during April, with focus on natural gas (+7.3% q/q overall, with production coming from operated unconventional fields jumping by 48.0%), while production of crude oil maintained its recovery trend (+1.2% sequentially). |
| • | Domestic demand for fuels evolved erratically as new mobility restrictions led to a reduction in consumption of gasoline (down 16.8% q/q and 18.1% versus 2Q19) while diesel demand increased 6.6% q/q (standing only 2.6% below 2Q19). |
| • | As we maintained our focus on increasing efficiency in our costs and productivity in our operations, total OPEX came at 17.3% below pre-pandemic levels of 2Q19 (or -20.1% after normalizing the effect of higher stand-by costs due to the blockade in Neuquén). |
| • | Another quarter with positive free cash flow at US$311 million – accumulating US$595 million during 1H21 –, allowing us to continue reducing our net consolidated debt by an additional US$253 million sequentially to US$6,499 million (down by a total of US$577 million in the first half of the year). |
| • | The combination of lower net consolidated debt and an improved 12-month rolling Adjusted EBITDA led to a significant recovery in our net leverage ratio (net-debt-to-LTM-adjusted-EBITDA) down to 2.7x from 4.9x in 1Q21, back within debt incurrence covenant limits. |
3
Table of Contents
2. ANALYSIS OF CONSOLIDATED RESULTS
| Consolidated Revenues Breakdown Unaudited Figures, in US$ million |
2Q20 | 1Q21 | 2Q21 | Y/Y D | 1H20 | 1H21 | Y/Y D | |||||||||||||||||||||
| Diesel |
729 | 921 | 1,111 | 52.3 | % | 1,725 | 2,032 | 17.8 | % | |||||||||||||||||||
| Gasoline |
263 | 613 | 581 | N.M | 933 | 1,195 | 28.1 | % | ||||||||||||||||||||
| Natural gas as producers (third parties) |
253 | 259 | 394 | 55.6 | % | 518 | 653 | 26.1 | % | |||||||||||||||||||
| Other |
402 | 552 | 821 | N.M | 905 | 1,373 | 51.7 | % | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Total Domestic Market |
1,648 | 2,346 | 2,907 | 76.4 | % | 4,081 | 5,253 | 28.7 | % | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Jet fuel |
3 | 24 | 26 | N.M | 105 | 50 | -52.3 | % | ||||||||||||||||||||
| Grain and flours |
131 | 114 | 230 | 75.3 | % | 193 | 344 | 78.5 | % | |||||||||||||||||||
| Crude oil |
62 | 6 | 11 | -82.7 | % | 70 | 17 | -76.1 | % | |||||||||||||||||||
| Petchem & Other |
104 | 158 | 176 | 69.0 | % | 331 | 334 | 0.8 | % | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Total Export Market |
299 | 302 | 442 | 47.8 | % | 699 | 744 | 6.5 | % | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Total Revenues |
1,947 | 2,648 | 3,349 | 72.0 | % | 4,779 | 5,997 | 25.5 | % | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Revenues for 2Q21, which amounted to US$3,349 million, showed a sound recovery on a sequential basis, increasing 26.5% on both higher domestic and export sales mainly supported by a recovery in demand for most of our products and a stronger pricing environment driven by higher fuel prices at the pump, better prices for most of our other refined and petrochemical products, and improved natural gas prices.
| • | Diesel revenues – which represented 33% of our total sales – increased 20.6% sequentially due to higher prices (13.5%) and volumes sold (6.6%), being almost back to pre-COVID levels as a better performance in agricultural and power generation segments was offset by lower sales in the retail sector. Gasoline sales – which represented 17% of total revenues – showed a different trend decreasing by 5.3% q/q as lower volumes (-16.8% taking into consideration retail demand’s sensitiveness to the new mobility restrictions) more than offset the higher realization prices (13.8%), still standing 18.1% below 2Q19 levels. The positive pricing trend for both products was backed by the increases that took place between March and May which more than compensated the devaluation of the currency. |
| • | Natural gas revenues as producers sold to third parties in the local market – which represented 12% of consolidated sales – went up 51.7% q/q mainly due to a better pricing on the back of the new Plan GasAR and better contractual negotiations with other clients. |
| • | Other domestic sales in 2Q21, increased 44.2% q/q mainly on higher sales of fertilizers, LPG, lubricants, petroleum coal, asphalts and petrochemicals which more than offset lower sales of jet fuel and fuel oil. |
| • | Export revenues increased 46.5% q/q on higher sales in the majority of our products due to higher prices and volumes sold. It is worth noting that sales of grains and flours doubled sequentially and increased 75.3% y/y due to the strong growth in agrochemical prices and an active commercial strategy in YPF Agro. |
On a year over year basis, revenues increased 72.0% given the general recovery as 2Q20 was entirely affected by the COVID outbreak with strict mobility restrictions and was characterized by a collapse in demand and prices for most of our products.
4
Table of Contents
| Consolidated Costs Breakdown Unaudited Figures, in US$ million |
2Q20 | 1Q21 | 2Q21 | Y/Y D | 1H20 | 1H21 | Y/Y D | |||||||||||||||||||||
| Lifting cost |
(399 | ) | (411 | ) | (460 | ) | 15.3 | % | (923 | ) | (871 | ) | -5.6 | % | ||||||||||||||
| Other Upstream |
(141 | ) | (59 | ) | (101 | ) | -28.1 | % | (219 | ) | (160 | ) | -27.0 | % | ||||||||||||||
| Refining & Logistics |
(210 | ) | (229 | ) | (255 | ) | 21.5 | % | (476 | ) | (484 | ) | 1.7 | % | ||||||||||||||
| Other Downstream |
(112 | ) | (98 | ) | (112 | ) | 0.0 | % | (206 | ) | (209 | ) | 1.5 | % | ||||||||||||||
| G&P, Corpo. & Other |
(251 | ) | (65 | ) | (87 | ) | -65.2 | % | (385 | ) | (152 | ) | -60.5 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Total OPEX |
(1,112 | ) | (861 | ) | (1,015 | ) | -8.8 | % | (2,209 | ) | (1,876 | ) | -15.1 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Depreciation & Amortization |
(703 | ) | (747 | ) | (835 | ) | 18.7 | % | (1,502 | ) | (1,582 | ) | 5.3 | % | ||||||||||||||
| Royalties |
(107 | ) | (171 | ) | (187 | ) | 74.3 | % | (291 | ) | (358 | ) | 23.0 | % | ||||||||||||||
| Other |
(94 | ) | (94 | ) | (139 | ) | 47.1 | % | (189 | ) | (232 | ) | 23.1 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Total Other Costs |
(905 | ) | (1,012 | ) | (1,161 | ) | 28.3 | % | (1,982 | ) | (2,173 | ) | 9.6 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Fuels imports |
(55 | ) | (75 | ) | (95 | ) | 73.5 | % | (152 | ) | (170 | ) | 11.6 | % | ||||||||||||||
| Crude oil purchases to third parties |
(14 | ) | (252 | ) | (248 | ) | N.M | (252 | ) | (500 | ) | 98.6 | % | |||||||||||||||
| Biofuel purchases |
(76 | ) | (108 | ) | (90 | ) | 17.1 | % | (237 | ) | (198 | ) | -16.6 | % | ||||||||||||||
| Non-oil agro purchases |
(204 | ) | (118 | ) | (322 | ) | 57.7 | % | (278 | ) | (440 | ) | 58.3 | % | ||||||||||||||
| Other purchases |
(148 | ) | (166 | ) | (195 | ) | 31.9 | % | (295 | ) | (361 | ) | 22.3 | % | ||||||||||||||
| Stock variations |
(82 | ) | 25 | 86 | N.M | 96 | 111 | 15.6 | % | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Total Purchases & Stock Variations |
(579 | ) | (694 | ) | (863 | ) | 49.0 | % | (1,118 | ) | (1,557 | ) | 39.3 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Other operating results, net |
118 | (3 | ) | (1 | ) | N.M | 238 | (4 | ) | N.M | ||||||||||||||||||
| Impairment of assets |
(850 | ) | — | — | N.M | (850 | ) | — | N.M | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Operating Costs + Purchases + Impairment of Assets |
(3,329 | ) | (2,570 | ) | (3,039 | ) | -8.7 | % | (5,920 | ) | (5,610 | ) | -5.2 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Stock variations include holding results of US$(108) million in 2Q20, US$66 million for 1Q21 and US$62 million for 2Q21.
Total OPEX, which stood at US$1,015 million, expanded 17.9% sequentially, but were still down 17.3% compared to the pre-pandemic levels of 2Q19 driven primarily by efficiencies in operating expenses supported by the company wide cost-cutting program performed during 2020. The sequential expansion was mainly the result of salary increases agreed with labor unions, the increase in activity levels (highest number of equipment in operation since the pandemic started), and an expansion in logistic charges given the low tides in the Parana river which limited the usage of contracted barges for fuel transportation.
Total Purchases & Stock Variations, increased 24.4% sequentially. The q/q increase in purchases, a category highly correlated with demand levels for refined products, was mainly driven by:
| • | An increase in fuel imports of 26.4% mainly driven by an expansion in imports of diesel on higher volumes, partially offset by lower imports of premium gasoline (-92.1%) due to lower volumes. |
| • | An expansion in non-oil agricultural purchases of 172.4% mainly driven by higher purchases of fertilizers, and grain receipts in the agricultural sales segment by way of barter of 231.1% and 170.4%, respectively, mainly due to higher prices and volumes of these products. |
| • | 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) – included in the “Other” category – expanded 93.7% mainly due to higher seasonal volumes (28.8%) and higher prices (50.3%). |
| • | These effects were partially offset by a decrease in crude oil purchases from third parties as volumes contracted by 5.7% due to the drop in crude oil processed in our refineries. |
| • | Biofuel purchases reported a reduction of 17.3% mainly due to lower purchases of biodiesel (-19.7%) and lower purchases of bioethanol (-16.2%) driven by lower volumes acquired despite higher prices for bioethanol. |
During 2Q21, a positive stock variation of US$86 million was recorded, mainly due to an increase in the replacement cost of our inventories as well as in the stock.
5
Table of Contents
| Consolidated Net Income Breakdown Unaudited Figures, in US$ million |
2Q20 | 1Q21 | 2Q21 | Y/Y D | 1H20 | 1H21 | Y/Y D | |||||||||||||||||||||
| Operating income |
(1,382 | ) | 78 | 310 | N.M | (1,141 | ) | 388 | N.M | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Interests in companies and joint ventures |
31 | 58 | 15 | -52.9 | % | 54 | 73 | 34.8 | % | |||||||||||||||||||
| Financial results, net |
79 | (49 | ) | (116 | ) | N.M | (93 | ) | (165 | ) | 77.5 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Earnings before tax |
(1,271 | ) | 87 | 209 | N.M | (1,180 | ) | 296 | N.M | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Income tax |
12 | (112 | ) | (701 | ) | N.M | 25 | (813 | ) | N.M | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Net Income |
(1,258 | ) | (25 | ) | (492 | ) | -60.9 | % | (1,155 | ) | (517 | ) | -55.2 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Net Income before impairment of assets |
(621 | ) | (25 | ) | (492 | ) | -20.8 | % | (518 | ) | (517 | ) | -0.1 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Financial results, net, for 2Q21 represented a loss of US$116 million compared to the US$49 million loss posted in 1Q21, mainly on lower net FX gains (US$39 million in 2Q21 versus US$99 million in 1Q21), given the impact that the slower devaluation had on our net liabilities. This was partially offset by a 5.5% q/q decrease in net interest expense, which amounted to US$183 million during 2Q21, as a result of a lower level of indebtedness. On a year over year basis, the positive results in 2Q20 was mainly attributed to net FX gains of US$180 million.
As a result of the operating and financial evolution, earnings before taxes reached US$209 million improving 140.8% q/q. The high tax charge during the quarter was mainly driven by an extraordinary deferred tax charges given the sanctioning of Law 27,630, which changed the corporate tax rate to 35% from 25% for 2021 onwards. It is worth mentioning that this is an accounting adjustment and does not entail a cash outflow for the company. As a result, net income for the quarter represented a loss of US$492 million, compared to the loss of US$25 million over 1Q21.
3. EBITDA AND ADJUSTED EBITDA RECONCILIATION
| Reconciliation of Adjusted EBITDA Unaudited Figures, in US$ million |
2Q20 | 1Q21 | 2Q21 | Y/Y D | 1H20 | 1H21 | Y/Y D | |||||||||||||||||||||
| Net Income |
(1,258 | ) | (25 | ) | (492 | ) | -60.9 | % | (1,155 | ) | (517 | ) | -55.2 | % | ||||||||||||||
| Financial results, net |
(79 | ) | 49 | 116 | N.M | 93 | 165 | 77.5 | % | |||||||||||||||||||
| Interests in companies and joint ventures |
(31 | ) | (58 | ) | (15 | ) | -52.9 | % | (54 | ) | (73 | ) | 34.8 | % | ||||||||||||||
| Income tax |
(12 | ) | 112 | 701 | N.M | (25 | ) | 813 | N.M | |||||||||||||||||||
| Unproductive exploratory drillings |
0 | - | 1 | N.M | 0 | 1 | N.M | |||||||||||||||||||||
| Depreciation & amortization |
703 | 747 | 835 | 18.7 | % | 1,502 | 1,582 | 5.3 | % | |||||||||||||||||||
| Impairment of assets |
850 | - | - | N.M | 850 | - | N.M | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| EBITDA |
171 | 825 | 1,146 | N.M | 1,211 | 1,971 | 62.7 | % | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Leasing |
(79 | ) | (61 | ) | (63 | ) | -20.2 | % | (164 | ) | (124 | ) | -24.4 | % | ||||||||||||||
| Other adjustments |
(64 | ) | 2 | 2 | N.M | (169 | ) | 4 | N.M | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Adjusted EBITDA |
28 | 767 | 1,084 | N.M | 879 | 1,851 | N.M | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Adjusted EBITDA for the quarter reached US$1,084 million, increasing 41.4% sequentially, and 14.3% above the pandemic free Adjusted EBITDA of 2Q19. Sequentially, the increase was backed by higher realization prices across the board and the expansion of oil and natural gas production. The strong pricing environment followed our active pricing strategy at the pump – taking average pump prices back to 2019 levels –, higher prices for other refined products and petrochemicals – which are highly correlated to international prices of oil and its derivatives –, in addition to a better pricing for natural gas – winter seasonality in the new Plan Gas and better contractual agreements with other clients. It is worth noting that Adjusted EBITDA margin reached 32%, at the high-end of the range for recent years.
The Adjusted EBITDA calculation include or exclude several items that can be considered infrequent which are the following.
6
Table of Contents
| • | 2Q21: Includes stand-by costs for US$40 million. |
| • | 1Q21: Includes stand-by costs for US$29 million. |
| • | 2Q20: Includes stand-by costs for US$83 million, and a US$118 million provision related to Decree No. 1053/2018, but excludes the impairment of PP&E for US$850 million and the US$65 million gain related to the sale of an 11% stake in Bandurria Sur. |
The reconciliation for each one of our segments between EBITDA and Adjusted EBITDA for 2Q21 is presented in the table below.
| EBITDA breadkdown by segment Unaudited Figures, in US$ million |
Upstream | Downstream | Gas & Energy | Corporate & Other |
Consolid. Adjustments |
Total | ||||||||||||||||||
| Operating income |
(12 | ) | 343 | 11 | (36 | ) | 5 | 310 | ||||||||||||||||
| Depreciation & amortization |
663 | 140 | 13 | 21 | (1 | ) | 835 | |||||||||||||||||
| Unproductive exploratory drillings |
1 | — | — | — | — | 1 | ||||||||||||||||||
| Impairment of assets |
— | — | — | — | — | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| EBITDA |
652 | 483 | 24 | (16 | ) | 3 | 1,146 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Leasing |
(38 | ) | (20 | ) | (5 | ) | — | — | (63 | ) | ||||||||||||||
| Other adjustments |
0 | 0 | 1 | 1 | — | 2 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Adjusted EBITDA |
614 | 463 | 20 | (15 | ) | 3 | 1,084 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
4. ANALYSIS OF RESULTS BY BUSINESS SEGMENT
| Upstream Financials Unaudited Figures, in US$ million |
2Q20 | 1Q21 | 2Q21 | Y/Y D | 1H20 | 1H21 | Y/Y D | |||||||||||||||||||||
| Crude oil |
531 | 950 | 971 | 82.7 | % | 1,539 | 1,921 | 24.8 | % | |||||||||||||||||||
| Natural gas |
273 | 285 | 423 | 54.9 | % | 592 | 709 | 19.8 | % | |||||||||||||||||||
| Other |
(3 | ) | 12 | (9 | ) | N.M | (13 | ) | 3 | N.M | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Revenues |
801 | 1,247 | 1,385 | 72.9 | % | 2,118 | 2,633 | 24.3 | % | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Depreciation & amortization |
(501 | ) | (581 | ) | (663 | ) | 32.2 | % | (1,118 | ) | (1,244 | ) | 11.3 | % | ||||||||||||||
| Lifting cost |
(399 | ) | (411 | ) | (460 | ) | 15.3 | % | (923 | ) | (871 | ) | -5.6 | % | ||||||||||||||
| Royalties |
(107 | ) | (171 | ) | (187 | ) | 74.3 | % | (291 | ) | (358 | ) | 23.0 | % | ||||||||||||||
| Exploration expenses |
(2 | ) | (2 | ) | (8 | ) | N.M | (13 | ) | (10 | ) | -24.3 | % | |||||||||||||||
| Other |
(36 | ) | (64 | ) | (79 | ) | N.M | (5 | ) | (143 | ) | N.M | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Operating income before impairment of assets |
(244 | ) | 19 | (12 | ) | -95.2 | % | (233 | ) | 7 | N.M | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Impairment of assets |
(848 | ) | — | — | N.M | (848 | ) | — | N.M | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Operating income |
(1,092 | ) | 19 | (12 | ) | -98.9 | % | (1,081 | ) | 7 | N.M | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Depreciation & amortization |
501 | 581 | 663 | 32.2 | % | 1,118 | 1,244 | 11.3 | % | |||||||||||||||||||
| Unproductive exploratory drillings |
0 | — | 1 | N.M | 0 | 1 | N.M | |||||||||||||||||||||
| Impairment of assets |
848 | — | — | -100.0 | % | 848 | — | -100.0 | % | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| EBITDA |
258 | 600 | 652 | N.M | 885 | 1,252 | 41.4 | % | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Leasing |
(36 | ) | (39 | ) | (38 | ) | 6.0 | % | (75 | ) | (77 | ) | 2.8 | % | ||||||||||||||
| Other adjustments |
(66 | ) | 0 | 0 | N.M | (169 | ) | 0 | N.M | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Adjusted EBITDA |
156 | 561 | 614 | N.M | 641 | 1,175 | 83.3 | % | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Capex |
104 | 425 | 480 | N.M | 581 | 905 | 55.9 | % | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Revenues expanded 11.1% compared to 1Q21, reaching US$1,385 million, backed by the increase in both crude oil and natural gas production and a strong recovery of prices for gas.
| • | Crude oil revenues increased 2.1% q/q as production and prices expanded by 1.2% and 3.0%, respectively, with the later not fully correlated with the rise in Brent given the transition scheme that has been agreed between producers and refiners in the local market. |
7
Table of Contents
| • | For natural gas, revenues expanded 48.5% q/q as output went up by 7.3%, while average realization price increased 32.9% supported by the seasonality factor included in the new Plan Gas, and better contractual terms with other clients. |
On a year over year basis, revenues jumped 72.9% compared to 2Q20 – a quarter impacted entirely by a partial halt in operations given the pandemic outbreak and the drop in international and local prices – with both crude oil and natural gas sales expanding.
| Unit Cash Costs Unaudited Figures, in US$/boe |
2Q20 | 1Q21 | 2Q21 | Y/Y D | 1H20 | 1H21 | Y/Y D | |||||||||||||||||||||
| Lifting Cost |
9.5 | 10.5 | 11.0 | 15.3 | % | 10.5 | 10.7 | 2.3 | % | |||||||||||||||||||
| Royalties and other taxes |
2.9 | 4.8 | 4.8 | 65.2 | % | 3.7 | 4.8 | 31.1 | % | |||||||||||||||||||
| Other Costs |
3.3 | 1.7 | 2.6 | -21.7 | % | 2.7 | 2.2 | -18.8 | % | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Total Cash Costs (US$/boe) |
15.7 | 17.0 | 18.3 | 16.7 | % | 16.8 | 17.7 | 5.3 | % | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
As regards our cost structure and on a per unit basis, total cash costs expanded 8.0% q/q – though contracting 9.7% (or -13.8% when normalizing for stand-by costs) when compared to the pre-pandemic quarter of 2Q19 given our cost-cutting program –, mainly due to the following:
| • | Lifting costs increased 4.8% q/q mainly due to salary increases negotiated with labor unions, and more pulling and maintenance activity. However, it is worth noting that lifting costs for unconventionals decreased of 23.0% q/q given the expansion in production (21,800 barrels of oil equivalent per day). |
| • | Royalties remained flat sequentially on a per unit basis. In millions of dollars, royalties increased by 9.4% q/q principally due to higher production and natural gas prices. Royalties in connection with natural gas increased 43.8%, while the charge related to crude oil remained stable at 0.2%. |
| • | The increase in “Other Costs” was mainly explained by higher non-recurring stand-by costs associated with the blockade in Neuquén during April, and some smaller extraordinary charges. |
In summary, Adjusted EBITDA reached US$614 million during the quarter, expanding 9.3% on a sequential basis, and 3.9x y/y.
| Upstream Operating data Unaudited Figures |
2Q20 | 1Q21 | 2Q21 | Y/Y D | 1H20 | 1H21 | Y/Y D | |||||||||||||||||||||
| Net Production Breakdown |
||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Crude Production (Kbbld) |
200.8 | 207.7 | 210.2 | 4.7 | % | 213.0 | 208.9 | -1.9 | % | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Conventional |
160.8 | 158.3 | 157.0 | -2.4 | % | 169.5 | 157.7 | -7.0 | % | |||||||||||||||||||
| Shale |
35.9 | 46.4 | 49.8 | 38.9 | % | 39.1 | 48.1 | 23.1 | % | |||||||||||||||||||
| Tight |
4.2 | 3.0 | 3.3 | -19.8 | % | 4.4 | 3.2 | -28.0 | % | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| NGL Production (Kbbld) |
45.7 | 29.5 | 36.6 | -20.0 | % | 45.3 | 33.1 | -27.1 | % | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Conventional |
27.5 | 16.3 | 18.3 | -33.5 | % | 26.2 | 17.3 | -34.1 | % | |||||||||||||||||||
| Shale |
14.1 | 12.0 | 16.5 | 17.0 | % | 15.5 | 14.3 | -8.0 | % | |||||||||||||||||||
| Tight |
4.1 | 1.2 | 1.8 | -57.0 | % | 3.6 | 1.5 | -58.7 | % | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Gas Production (Mm3d) |
35.0 | 31.8 | 34.1 | -2.7 | % | 36.6 | 32.9 | -10.0 | % | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Conventional |
18.8 | 18.0 | 17.7 | -5.6 | % | 19.4 | 17.9 | -7.8 | % | |||||||||||||||||||
| Shale |
7.8 | 6.4 | 8.6 | 9.4 | % | 8.3 | 7.5 | -10.2 | % | |||||||||||||||||||
| Tight |
8.4 | 7.4 | 7.8 | -7.3 | % | 8.9 | 7.6 | -14.7 | % | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Total Production (Kboed) |
466.8 | 437.0 | 461.1 | -1.2 | % | 488.6 | 449.1 | -8.1 | % | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Conventional |
306.3 | 288.0 | 286.6 | -6.4 | % | 317.6 | 287.3 | -9.6 | % | |||||||||||||||||||
| Shale |
99.2 | 98.4 | 120.2 | 21.2 | % | 106.9 | 109.3 | 2.3 | % | |||||||||||||||||||
| Tight |
61.4 | 50.6 | 54.3 | -11.5 | % | 64.0 | 52.5 | -18.0 | % | |||||||||||||||||||
| Average realization prices |
||||||||||||||||||||||||||||
| Crude Oil (USD/bbl) |
28.9 | 50.1 | 51.6 | 78.8 | % | 39.3 | 50.9 | 29.3 | % | |||||||||||||||||||
| Natural Gas (USD/MMBTU) |
2.5 | 2.9 | 3.8 | 54.1 | % | 2.6 | 3.4 | 29.3 | % | |||||||||||||||||||
Natural gas price for 2Q20 has been restated due to the change in the accrual of the Plan Gas and the adjustments for final billing.
8
Table of Contents
Production expanded 5.5% sequentially as a result of the increase in activity, focused, more recently, in shale gas to comply with our commitments under the new Plan Gas, but also in our shale oil core hub. Natural gas production expanded 7.3% q/q due to a 34.6% rise in shale gas, in spite of the 20-day blockade carried out by health care workers in the Province of Neuquén that severely affected our operations. On the crude oil side, output increased by 1.2% driven by a 7.3% increase in shale with production in our core hub (Loma Campana, La Amarga Chica, and Bandurria Sur) reaching a new historical record, producing almost 42 thousand barrels per day in 2Q21.
On a year over year basis, total production for 2Q21 decreased by a minor 1.2%. Natural gas decreased 2.7% to 34.1 Mm3d, while crude oil production expanded 4.7%, to 210.2 Kbbld, with a reduction in conventional crude production of 2.4%, more than offset by an increase in shale oil of 38.9%.
The realization price of crude oil in 2Q21 increased by 3.0% q/q, and 78.8% y/y to US$51.6/bbl partially reflecting the recovery in international prices. Although Brent averaged US$69/bbl during the quarter, the transition scheme between local refiners and producers to set a lower local reference price for Brent remained in place. The goal of this agreement is to smooth out the evolution of crude prices, minimizing volatility and allowing for a gradual pass-through to the pump.
The average price for natural gas for the quarter was US$3.8/MMBTU, increasing 32.9% q/q and 54.1% y/y supported by the new Plan GasAR and better prices for contracts with other clients. The price for 2Q21 included US$0.66 of subsidies compared to US$0.24 in 1Q21 and US$0.12 in 2Q20.
CAPEX:
Upstream capex stood at US$480 million, expanding 13.1% sequentially, as we continued ramping up activity with the number of active drilling equipment reaching 16, a record high since the pandemic started. On a yearly basis, investments expanded 4.6x as 2Q20 was fully affected by the strict lockdown and the related halt in activity that we went through.
Activity during 2Q21 focused on shale blocks: 1) on the natural gas front, Rincón del Mangrullo, and Aguada de la Arena led the pack among our operated blocks in terms of new wells, while workover activity at El Orejano also rendered a relevant increase in production; and 2) on the crude oil side, activity continued focusing in our core hub, including La Amarga Chica, Loma Campana, and Bandurria Sur. In addition to shale activity, the development of tight gas continued in Rio Neuquén and in Estación Fernández Oro where workovers were carried out.
For conventional oil, activity focused on primary recovery projects and development in the Cañadón Yatel, Seco León, El Trébol, Desfiladero Bayo and Manantiales Behr blocks; as well as in the secondary recovery projects mainly in the blocks of Barranca Baya, Chihuido Sierra Negra, Manantiales Behr, Los Perales and CNQ7A. At the same time, we continued with tertiary recovery projects mainly in the Manantiales Behr and El Trébol blocks.
As for the exploration activity, during 2Q21 we performed workover tasks on the Nq.PdL.x-2 well (exploratory commitment in the Salinas del Huitrín block in the Province of Neuquén). The completion process for the Rco.AP.xp-19 and Rn.MLu.x-1 exploratory wells was started.
9
Table of Contents
| Downstream Financials Unaudited Figures, in US$ million |
2Q20 | 1Q21 | 2Q21 | Y/Y D | 1H20 | 1H21 | Y/Y D | |||||||||||||||||||||
| Diesel |
729 | 921 | 1,111 | 52.3 | % | 1,725 | 2,032 | 17.8 | % | |||||||||||||||||||
| Gasoline |
263 | 613 | 581 | N.M | 933 | 1,195 | 28.1 | % | ||||||||||||||||||||
| Other domestic market |
271 | 462 | 640 | N.M | 602 | 1,102 | 83.0 | % | ||||||||||||||||||||
| Export market |
280 | 276 | 440 | 57.2 | % | 637 | 716 | 12.5 | % | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Revenues |
1,544 | 2,273 | 2,773 | 79.6 | % | 3,897 | 5,045 | 29.5 | % | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Depreciation & amortization |
(146 | ) | (134 | ) | (140 | ) | -3.7 | % | (291 | ) | (274 | ) | -5.7 | % | ||||||||||||||
| Refining & Logistics |
(210 | ) | (229 | ) | (255 | ) | 21.5 | % | (476 | ) | (484 | ) | 1.7 | % | ||||||||||||||
| Fuels imports |
(55 | ) | (75 | ) | (95 | ) | 73.5 | % | (152 | ) | (170 | ) | 11.6 | % | ||||||||||||||
| Crude oil purchases (intersegment + third parties) |
(545 | ) | (1,203 | ) | (1,219 | ) | N.M | (1,791 | ) | (2,421 | ) | 35.2 | % | |||||||||||||||
| Biofuel purchases |
(76 | ) | (108 | ) | (90 | ) | 17.1 | % | (237 | ) | (198 | ) | -16.6 | % | ||||||||||||||
| Non-oil agro purchases |
(204 | ) | (118 | ) | (322 | ) | 57.7 | % | (278 | ) | (440 | ) | 58.3 | % | ||||||||||||||
| Other |
(305 | ) | (207 | ) | (310 | ) | 1.5 | % | (602 | ) | (517 | ) | -14.2 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Operating income before impairment of assets |
3 | 199 | 343 | N.M | 70 | 541 | N.M | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Impairment of assets |
— | — | — | N.M | — | — | N.M | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Operating income |
3 | 199 | 343 | N.M | 70 | 541 | N.M | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Depreciation & amortization |
146 | 134 | 140 | -3.7 | % | 291 | 274 | -5.7 | % | |||||||||||||||||||
| Impairment of assets |
— | — | — | N.M | — | — | N.M | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| EBITDA |
148 | 333 | 483 | N.M | 361 | 815 | N.M | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Leasing |
(26 | ) | (16 | ) | (20 | ) | -23.6 | % | (52 | ) | (36 | ) | -30.9 | % | ||||||||||||||
| Other adjustments |
0 | 1 | 0 | -84.4 | % | 1 | 1 | 11.7 | % | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Adjusted EBITDA |
123 | 317 | 463 | N.M | 310 | 780 | N.M | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Capex |
37 | 51 | 81 | N.M | 121 | 132 | 8.8 | % | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Adjusted EBITDA includes holding results from crude oil at transfer price of US$(34) million in 2Q20, US$108 million in 1Q21, and US$61 million in 2Q21.
Revenues expanded 22.0% sequentially, reaching US$2,773 million mainly driven by higher prices for our main products both domestically and for exports. Domestic demand for our most relevant products (diesel and gasoline) stood 8.6% below pre-pandemic levels and contracted only 2.9% sequentially despite the new mobility restrictions introduced by the government in late April – mainly including a curfew and 10 days of strict lockdown in May, which have been gradually relaxed since June.
| • | Diesel revenues – which represented 40% of the segment’s sales – increased 20.6% q/q due to higher prices in dollars for the diesel mix of 13.5% and by higher volumes of 6.6%. Demand was supported by the agricultural industry and power generation being only 2.6% below 2Q19. |
| • | Gasoline revenues – which represented 21% of the downstream sales – decreased by 5.3% q/q as gasoline demand, which is more sensitive to mobility restrictions, contracted 16.8% on a sequential basis – still standing 18.1% below pre-pandemic levels (2Q19) –, partially offset by an expansion in prices (+13.8%). |
10
Table of Contents
| • | Other sales in the domestic market increased by 38.6% q/q mainly supported by both higher prices and volumes for asphalts, petrochemicals, lubricants, fertilizers and LPG. |
| • | Export revenues increased 59.3% q/q mainly driven by an expansion of prices and volumes for grain and flours, fuel oil, petroleum coal, and virgin naphtha. |
On a year over year basis, revenues increased 79.6% driven by the general recovery in demand and prices taking into consideration the collapse that took place at a domestic and international levels during 2Q20 given the outbreak of the pandemic.
Operating costs for the segment increased q/q mainly due to the following:
| • | Refining and logistics costs increased by 11.4% mainly as a result of higher charges related to repair and maintenance, electricity and other supplies, personnel expenses, and an expansion in logistic charges given the low tides in the Parana river which limited the usage of contracted barges for fuel transportation which were replaced by other means of transportation. |
| • | Crude oil purchases expanded by 1.3% driven mainly by higher crude prices in dollars. This was partially offset by a slight reduction in the crude volumes transferred from the Upstream segment (-0.8%), and lower volumes purchased from third parties (-5.7%) which amounted to 20% of the total crude oil processed. |
| • | Biofuel purchases decreased by 17.3% due to lower purchases of biodiesel (-19.7%) driven by a contraction in volumes and prices, with a low portion of biodiesel in the mix given the lack of supply in the market. For bioethanol, the lower purchases of this product (-16.2%) were the result of lower volumes, aligned to the sequential contraction in gasoline demand, partially offset by higher prices. |
| • | Non-oil agro purchases increased by 172.4% mainly driven by higher purchases of fertilizers, and grain receipts in the agricultural sales segment by way of barter of 231.1% and 170.4%, respectively, mainly due to higher prices and volumes of these products. |
As a result, Adjusted EBITDA reached US$463 million during the quarter, expanding 45.9% q/q.
| Downstream Operating data Unaudited Figures |
2Q20 | 1Q21 | 2Q21 | Y/Y D | 1H20 | 1H21 | Y/Y D | |||||||||||||||||||||
| Crude processed (Kbbld) |
191.7 | 273.4 | 266.4 | 39.0 | % | 233.5 | 269.9 | 15.6 | % | |||||||||||||||||||
| Refinery utilization (%) |
60 | % | 83 | % | 81 | % | 2119 | bps | 73 | % | 82 | % | 12.5 | % | ||||||||||||||
| Sales volume |
||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Sales of refined products (Km3) |
3,041 | 4,140 | 4,264 | 40.2 | % | 7,143 | 8,405 | 17.7 | % | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Total domestic market |
2,679 | 3,901 | 3,976 | 48.4 | % | 6,220 | 7,877 | 26.6 | % | |||||||||||||||||||
| of which Gasoline |
579 | 1,240 | 1,032 | 78.2 | % | 1,801 | 2,271 | 26.1 | % | |||||||||||||||||||
| of which Diesel |
1,578 | 1,811 | 1,931 | 22.3 | % | 3,301 | 3,742 | 13.4 | % | |||||||||||||||||||
| Total export market |
362 | 239 | 288 | -20.4 | % | 923 | 527 | -42.8 | % | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Sales of petrochemical products (Ktn) |
147 | 247 | 229 | 56.2 | % | 373 | 476 | 27.6 | % | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Domestic market |
95 | 166 | 179 | 89.0 | % | 261 | 345 | 32.2 | % | |||||||||||||||||||
| Export market |
52 | 81 | 50 | -3.6 | % | 112 | 131 | 16.9 | % | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Sales of grain, flours and oils (Ktn) |
523 | 294 | 456 | -12.8 | % | 761 | 751 | -1.4 | % | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Domestic market |
97 | 11 | 11 | -88.3 | % | 130 | 22 | -82.9 | % | |||||||||||||||||||
| Export market |
427 | 284 | 445 | 4.3 | % | 631 | 729 | 15.4 | % | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Sales of fertilizers (Ktn) |
227 | 186 | 328 | 44.1 | % | 318 | 514 | 61.4 | % | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Domestic market |
227 | 186 | 328 | 44.1 | % | 318 | 514 | 61.4 | % | |||||||||||||||||||
| Average prices of fuels in the domestic market |
||||||||||||||||||||||||||||
| Gasoline (USD/m3) |
442 | 478 | 544 | 23.2 | % | 504 | 508 | 0.9 | % | |||||||||||||||||||
| Diesel (USD/m3) |
460 | 504 | 572 | 24.4 | % | 521 | 539 | 3.6 | % | |||||||||||||||||||
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 328.1 Kbbl/d since 1Q21.
11
Table of Contents
The crude oil processed during the quarter stood at 266.4 Kbbld, slightly down 2.6% q/q – but increasing by almost 40% versus the same period of last year and at levels similar to pre-pandemic – as we efficiently managed our operations to react to the evolution of demand. Given the new mobility restriction imposed, we decided to perform maintenance works in our La Plata refinery at the end of May to minimize the impact from the lower demand. These works were originally scheduled for March but at that time given the higher-than-expected demand, we decided to postpone it.
Average diesel and gasoline prices in dollars in the local market increased 13.5% q/q and 13.8% q/q, respectively. The quarter was fully impacted by the prices increases that took place in the March-May period which allowed to finalize the process of margin normalization and take our prices back to 2019 average levels. Consequently, when looking on a year over year basis, average dollar price for the diesel mix increased 24.4%, with gasoline following the uptrend at 23.2%.
CAPEX:
Downstream capex totaled US$81 million, increasing 57.3% q/q and 2.2x y/y. During 2Q21, works in connection to the new fuel specifications continued, covering the initial steps for the construction of a new diesel hydrotreatment unit in the Luján de Cuyo Refinery, and the construction of gasoline hydrotreatment unit and revamping of existing units in the La Plata Industrial Complex. These works aim to comply with the new specifications established by Resolution 576/2019 of the Ministry of Treasury that will enter into force in 2024, as well as new trends in demand following new engine requirements, primarily Euro 5.
At the La Plata Refinery, the scheduled maintenance of the Catalytic Cracking A plant began at the end of May, with an estimated duration of 80 days. At the Luján de Cuyo Refinery, works to modernize the MTBE unit to ETBE continued, with completion expected for the last quarter of 2021. In the Plaza Huincul Refinery, a stoppage in the Topping and Platforming took place in mid-May, with processing being normalized at the beginning of June.
12
Table of Contents
| Gas & Power Financials Unaudited Figures, in US$ million |
2Q20 | 1Q21 | 2Q21 | Y/Y D | 1H20 | 1H21 | Y/Y D | |||||||||||||||||||||
| Natural gas as producers (intersegment + third parties) |
275 | 285 | 427 | 55.5 | % | 583 | 712 | 22.2 | % | |||||||||||||||||||
| Natural gas retail segment |
90 | 57 | 109 | 20.2 | % | 182 | 166 | -8.8 | % | |||||||||||||||||||
| Other |
67 | 27 | 43 | -36.6 | % | 138 | 70 | -49.3 | % | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Revenues |
432 | 370 | 578 | 33.7 | % | 903 | 948 | 5.0 | % | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Depreciation & amortization |
(18 | ) | (12 | ) | (13 | ) | -28.6 | % | (38 | ) | (25 | ) | -34.3 | % | ||||||||||||||
| Natural gas purchases (intersegment + third parties) |
(278 | ) | (288 | ) | (424 | ) | 52.4 | % | (603 | ) | (712 | ) | 18.1 | % | ||||||||||||||
| Other |
(267 | ) | (101 | ) | (130 | ) | -51.1 | % | (411 | ) | (231 | ) | -43.7 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Operating income before impairment of assets |
(130 | ) | (31 | ) | 11 | N.M | (148 | ) | (20 | ) | -86.4 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Impairment of assets |
(1 | ) | — | — | N.M | (1 | ) | — | N.M | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Operating income |
(131 | ) | (31 | ) | 11 | N.M | (149 | ) | (20 | ) | -86.5 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Depreciation & amortization |
18 | 12 | 13 | -28.6 | % | 38 | 25 | -34.3 | % | |||||||||||||||||||
| Impairment of assets |
1 | — | — | -100.0 | % | 1 | — | -100.0 | % | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| EBITDA |
(112 | ) | (19 | ) | 24 | N.M | (111 | ) | 5 | N.M | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Leasing |
(17 | ) | (6 | ) | (5 | ) | -69.4 | % | (37 | ) | (11 | ) | -70.0 | % | ||||||||||||||
| Other adjustments |
2 | 2 | 1 | -43.6 | % | 2 | 3 | 42.7 | % | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Adjusted EBITDA |
(128 | ) | (23 | ) | 20 | N.M | (146 | ) | (3 | ) | -97.7 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Capex |
8 | 4 | 6 | -24.0 | % | 21 | 10 | -52.5 | % | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Sales of natural gas as producers include domestic and external markets.
Revenues of the segment expanded 56.3% q/q, mainly driven by a 49.6 % increase in sales of natural gas as producers in the local market and abroad – which represented 74% of segment’s sales – given the higher volumes due to seasonality and the aforementioned increase in production and better prices in dollars supported by the seasonal factor included in the new Plan Gas as well as better contractual conditions with other clients. 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) – which represented 19% of segment’s sales – increased by 89.0% q/q mainly on the back of seasonally higher sales of gas and an expansion in the average price perceived through its distribution network.
Total operating costs increased q/q primarily due to increased purchases of natural gas (47.1% q/q) on increasing volumes – volumes transferred from the Upstream segment were up by 9.0%, which more than offset a reduction of 78.1% in purchases from third parties.
As a whole, Adjusted EBITDA stood at US$20 million recovering from a loss of US$23 million in 1Q21.
| Corporate & Other Financials Unaudited Figures, in US$ million |
2Q20 | 1Q21 | 2Q21 | Y/Y D | 1H20 | 1H21 | Y/Y D | |||||||||||||||||||||
| Revenues |
92 | 144 | 181 | 96.5 | % | 264 | 324 | 22.7 | % | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Operating costs |
(190 | ) | (186 | ) | (217 | ) | 14.4 | % | (418 | ) | (403 | ) | -3.6 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Operating income before impairment of assets |
(98 | ) | (42 | ) | (36 | ) | -62.7 | % | (154 | ) | (78 | ) | -49.0 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Impairment of assets |
(1 | ) | — | — | N.M | (1 | ) | — | N.M | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Operating income |
(99 | ) | (42 | ) | (36 | ) | -63.1 | % | (155 | ) | (78 | ) | -49.3 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Depreciation & amortization |
39 | 21 | 21 | -46.5 | % | 56 | 42 | -25.1 | % | |||||||||||||||||||
| Impairment of assets |
1 | — | — | -100.0 | % | 1 | — | -100.0 | % | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| EBITDA |
(59 | ) | (21 | ) | (16 | ) | -73.4 | % | (98 | ) | (37 | ) | -62.5 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Leasing |
(0 | ) | — | — | N.M | (0 | ) | — | N.M | |||||||||||||||||||
| Other adjustments |
(1 | ) | (1 | ) | 1 | N.M | (2 | ) | (0 | ) | -99.3 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Adjusted EBITDA |
(60 | ) | (22 | ) | (15 | ) | -74.6 | % | (100 | ) | (37 | ) | -63.4 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Capex |
13 | 7 | 13 | 2.3 | % | 36 | 20 | -44.1 | % | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
13
Table of Contents
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 2Q21 represented a loss of US$15 million, which compares slightly favorably with the loss of US$22 million in 1Q21, mainly on higher revenues from ongoing projects recorded at our controlled company A Evangelista S.A.
4.5. CONSOLIDATION ADJUSTMENTS
| Consolidation Adjustments Financials Unaudited Figures, in US$ million |
2Q20 | 1Q21 | 2Q21 | Y/Y D | 1H20 | 1H21 | Y/Y D | |||||||||||||||||||||
| Revenues |
(923 | ) | (1,386 | ) | (1,567 | ) | 69.9 | % | (2,403 | ) | (2,954 | ) | 22.9 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Operating costs |
860 | 1,320 | 1,572 | 82.9 | % | 2,577 | 2,892 | 12.2 | % | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Operating income before impairment of assets |
(63 | ) | (66 | ) | 5 | N.M | 174 | (62 | ) | N.M | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Impairment of assets |
— | — | — | N.M | — | — | N.M | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Operating income |
(63 | ) | (66 | ) | 5 | N.M | 174 | (62 | ) | N.M | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Depreciation & amortization |
— | (1 | ) | (1 | ) | N.M | — | (3 | ) | N.M | ||||||||||||||||||
| Impairment of assets |
— | — | — | N.M | — | — | N.M | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| EBITDA |
(63 | ) | (68 | ) | 3 | N.M | 174 | (64 | ) | N.M | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Leasing |
— | — | — | N.M | — | — | N.M | |||||||||||||||||||||
| Other adjustments |
— | — | — | N.M | — | — | N.M | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Adjusted EBITDA |
(63 | ) | (68 | ) | 3 | N.M | 174 | (64 | ) | N.M | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Consolidation adjustments to eliminate results among business segments not transferred to third parties was positive US$3 million in 2Q21 versus negative US$68 million in 1Q21. In 2Q21, the gap between the transfer price across businesses and the cost of production of the company’s inventories tightened, while in 1Q21 it widened due to the rise in Brent price which affected transfer prices.
5. LIQUIDITY AND SOURCES OF CAPITAL
| Summary Consolidated Cash Flow Unaudited Figures, in US$ million |
2Q20 | 1Q21 | 2Q21 | Y/Y D | 1H20 | 1H21 | Y/Y D | |||||||||||||||||||||
| Cash BoP |
1,074 | 650 | 612 | -43.0 | % | 1,106 | 650 | -41.2 | % | |||||||||||||||||||
| Net cash flow from operating activities |
498 | 1,054 | 1,001 | N.M | 1,459 | 2,055 | 40.8 | % | ||||||||||||||||||||
| Net cash flow from investing activities |
(49 | ) | (523 | ) | (531 | ) | N.M | (737 | ) | (1,055 | ) | 43.1 | % | |||||||||||||||
| Net cash flow from financing activities |
(290 | ) | (522 | ) | (525 | ) | 81.3 | % | (583 | ) | (1,047 | ) | 79.7 | % | ||||||||||||||
| FX adjustments & other |
(46 | ) | (46 | ) | (17 | ) | -63.7 | % | (58 | ) | (62 | ) | 8.3 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Cash EoP |
1,187 | 612 | 540 | -54.5 | % | 1,187 | 540 | -54.5 | % | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Investment in financial assets |
115 | 382 | 395 | N.M | 115 | 395 | N.M | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Cash + short-term investments EoP |
1,303 | 995 | 935 | -28.2 | % | 1,303 | 935 | -28.2 | % | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| FCF |
61 | 284 | 311 | N.M | (24 | ) | 595 | 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 flow from operating activities amounted to US$1,001 million in 2Q21, representing a minor decrease of 5.0% q/q compared to the US$1,054 million in 1Q21. The q/q change was mainly due to an increase in working capital needs due to seasonality which offset the expansion in Adjusted EBITDA. On a year over year basis, the continued recovery in profitability, resulted in a 2x increase in our cash flow from operations.
14
Table of Contents
Net cash flow from investing activities were a negative US$531 million, compared to a negative US$523 million in 1Q21 mainly driven by an increase in the acquisition of PP&E (cash capex), which totaled US$500 million, including purchases of materials. It is worth noting that cash capex during the quarter was lower than our accrued capex of US$580 million given the combination of our 30-day payment cycle and considering that June was the month with the highest level of activity during the second quarter. Looking at a year ago, net cash outflow from investing activities was just US$49 million not only due to the halt in activity that took place in 2Q20, but also due to the collection of US$111 million related to M&A activity (the sale of an 11% stake in Bandurria Sur and a 50% stake in CAN-100).
Net cash flow from financing activities amounted to negative US$525 million in 2Q21, compared to negative US$522 million in 1Q21, as we continued using our excess cash to reduce the level of indebtedness, taking net borrowing to negative levels on both quarters at US$318 million and US$246 million, respectively. In 2Q21, we can highlight the cancellation of a dollar denominated syndicate loan of US$250 million which was partially refinanced during July. Interest payments during the quarter declined about 35% both q/q and y/y, totaling US$131 million, mainly as a result of the reduction in the levels of debt and lower cash coupons on the new securities issued as part of the debt exchange offer executed earlier this year.
Free cash flow before debt financing reached US$311 million during the quarter, being positive for the fifth consecutive quarter, improving 9.4% compared to the inflow of US$284 million registered in 1Q21 and accumulating US$595 million during 1H21 (versus a cash burn of US$24 million in 1H20). The improvement was related to the aforementioned recovery in profitability, which allowed for a significant reduction in our net debt.
Total consolidated liquidity, including US$395 million of sovereign bonds and treasury notes, stood at US$935 million as of June 30, 2021, mostly aligned with the liquidity position held during the most recent quarters, and in-line with the target level set at US$1 billion plus/minus10%.
In terms of cash management, we continued to actively administrate our liquidity to maintain FX exposure within certain limits, while also considering the cost of carry of such strategy, as Communication “A” 7030 from the Argentine Central Bank (and its successors) restricts corporations from holding liquid assets abroad to retain access to the official FX market. As a result, the Peso portion of our cash and cash equivalents was reduced to 55% compared to 76% in 1Q21. However, our net FX exposure, including hedging instruments and netting our peso denominated debt, stood at just 6%.
| Net debt breakdown Unaudited Figures, in US$ million |
2Q20 | 1Q21 | 2Q21 | Q/Q D | ||||||||||||
| Short-term debt |
2,783 | 1,187 | 1,274 | 7.4 | % | |||||||||||
| Long-term debt |
5,906 | 6,560 | 6,160 | -6.1 | % | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total debt |
8,690 | 7,747 | 7,434 | -4.0 | % | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Avg. Interest rate for AR$-debt |
30.9 | % | 34.9 | % | 35.7 | % | ||||||||||
| Avg. Interest rate for US$-debt |
7.5 | % | 7.5 | % | 7.6 | % | ||||||||||
| % of debt in AR$ |
10 | % | 6 | % | 6 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Cash + short term investments |
1,303 | 995 | 935 | -6.0 | % | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| % of cash in AR$ |
51 | % | 76 | % | 55 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net debt |
7,387 | 6,752 | 6,499 | -3.7 | % | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
Average interest rates for AR$ and US$ debt refer to YPF on a stand-alone basis.
15
Table of Contents
As of June 30, 2021, YPF’s consolidated net debt totaled US$6,499 million, further decreasing by US$253 million q/q, and still at levels not seen since 2015, driven by a 14.4% reduction in total debt to US$7,434 million, which more than offset a US$60 million contraction in our cash position. On a year over year basis, the total reduction in net debt reached US$888 million.
Our net-debt-to-last-twelve-month-adjusted-EBITDA ratio dropped to 2.7x, compared to the 4.9x in the previous quarter due to the strong recovery in profitability, together with our lower net debt levels, being back within debt incurrence covenant limits.
The maturity profile for the rest of the year is favorably affected by the aforementioned reduction in our indebtedness together with the cash relief for 2021 and 2022 from the Global Debt Exchange executed earlier this year. Furthermore, most maturities coming due in the second half of 2021 are primarily concentrated in local loans, trade lines and bonds, having close to US$110 million in cross-border maturities, out of which only US$43 million are related to international bonds (amortization of the 2025 note in September).
There were no issuances during 2Q21. The following chart shows the consolidated principal debt maturity profile of the company as of June 30, 2021, expressed in millions of dollars:
16
Table of Contents
6.1. CONSOLIDATED STATEMENT OF INCOME
| Income Statement Unaudited Figures, in US$ million |
2Q20 | 1Q21 | 2Q21 | Y/Y D | 1H20 | 1H21 | Y/Y D | |||||||||||||||||||||
| Revenues |
1,947 | 2,648 | 3,349 | 72.0 | % | 4,779 | 5,997 | 25.5 | % | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Costs |
(2,147 | ) | (2,238 | ) | (2,639 | ) | 22.9 | % | (4,513 | ) | (4,878 | ) | 8.1 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Gross profit |
(200 | ) | 410 | 710 | N.M | 266 | 1,120 | N.M | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Selling expenses |
(340 | ) | (225 | ) | (276 | ) | -18.9 | % | (565 | ) | (500 | ) | -11.4 | % | ||||||||||||||
| Administrative expenses |
(108 | ) | (103 | ) | (115 | ) | 7.0 | % | (217 | ) | (218 | ) | 0.4 | % | ||||||||||||||
| Exploration expenses |
(2 | ) | (2 | ) | (9 | ) | N.M | (14 | ) | (10 | ) | -24.0 | % | |||||||||||||||
| Impairment of property, plant and equipment and intangible assets |
(850 | ) | — | — | N.M | (850 | ) | — | N.M | |||||||||||||||||||
| Other operating results, net |
118 | (3 | ) | (1 | ) | N.M | 238 | (4 | ) | N.M | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Operating income |
(1,382 | ) | 78 | 310 | N.M | (1,141 | ) | 388 | N.M | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Income of interests in companies and joint ventures |
31 | 58 | 15 | -52.9 | % | 54 | 73 | 34.8 | % | |||||||||||||||||||
| Financial Income |
456 | 254 | 206 | -54.9 | % | 795 | 459 | -42.2 | % | |||||||||||||||||||
| Financial Cost |
(552 | ) | (365 | ) | (376 | ) | -32.0 | % | (1,041 | ) | (741 | ) | -28.8 | % | ||||||||||||||
| Other financial results |
176 | 63 | 54 | -69.2 | % | 153 | 117 | -23.6 | % | |||||||||||||||||||
| Financial results, net |
79 | (49 | ) | (116 | ) | N.M | (93 | ) | (165 | ) | 77.5 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Net profit before income tax |
(1,271 | ) | 87 | 209 | N.M | (1,180 | ) | 296 | N.M | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Income tax |
12 | (112 | ) | (701 | ) | N.M | 25 | (813 | ) | N.M | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Net profit for the period |
(1,258 | ) | (25 | ) | (492 | ) | -60.9 | % | (1,155 | ) | (517 | ) | -55.2 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Net profit for shareholders of the parent company |
(1,252 | ) | (23 | ) | (479 | ) | -61.7 | % | (1,151 | ) | (502 | ) | -56.4 | % | ||||||||||||||
| Net profits for non-controlling interest |
(6 | ) | (2 | ) | (13 | ) | N.M | (4 | ) | (15 | ) | N.M | ||||||||||||||||
| Earnings per share attributable to shareholders of the parent company (basic and diluted) |
(3.19 | ) | (0.06 | ) | (1.22 | ) | -61.8 | % | (2.93 | ) | (1.28 | ) | -56.3 | % | ||||||||||||||
| Other comprehensive income |
824 | 742 | 371 | -55.0 | % | 1,529 | 1,113 | -27.2 | % | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Total comprehensive income for the period |
(434 | ) | 716 | (121 | ) | -72.1 | % | 374 | 595 | 59.4 | % | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Income Statement Unaudited Figures, in AR$ million |
2Q20 | 1Q21 | 2Q21 | Y/Y D | 1H20 | 1H21 | Y/Y D | |||||||||||||||||||||
| Revenues |
133,558 | 234,890 | 315,873 | N.M | 308,228 | 550,763 | 78.7 | % | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Costs |
(146,822 | ) | (198,531 | ) | (248,940 | ) | 69.6 | % | (292,736 | ) | (447,471 | ) | 52.9 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Gross profit |
(13,264 | ) | 36,359 | 66,933 | N.M | 15,492 | 103,292 | N.M | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Selling expenses |
(23,168 | ) | (19,945 | ) | (26,021 | ) | 12.3 | % | (37,044 | ) | (45,966 | ) | 24.1 | % | ||||||||||||||
| Administrative expenses |
(7,383 | ) | (9,125 | ) | (10,912 | ) | 47.8 | % | (14,132 | ) | (20,037 | ) | 41.8 | % | ||||||||||||||
| Exploration expenses |
(140 | ) | (159 | ) | (804 | ) | N.M | (856 | ) | (963 | ) | 12.5 | % | |||||||||||||||
| Impairment of property, plant and equipment and intangible assets |
(57,429 | ) | — | — | N.M | (57,429 | ) | — | N.M | |||||||||||||||||||
| Other operating results, net |
7,940 | (276 | ) | (55 | ) | N.M | 15,323 | (331 | ) | N.M | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Operating income |
(93,444 | ) | 6,854 | 29,141 | N.M | (78,646 | ) | 35,995 | N.M | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Income of interests in companies and joint ventures |
2,300 | 5,116 | 1,439 | -37.4 | % | 3,720 | 6,555 | 76.2 | % | |||||||||||||||||||
| Financial Income |
30,817 | 22,347 | 19,314 | -37.3 | % | 51,623 | 41,661 | -19.3 | % | |||||||||||||||||||
| Financial Cost |
(37,680 | ) | (32,323 | ) | (35,448 | ) | -5.9 | % | (67,814 | ) | (67,771 | ) | -0.1 | % | ||||||||||||||
| Other financial results |
12,075 | 5,685 | 5,262 | -56.4 | % | 10,782 | 10,947 | 1.5 | % | |||||||||||||||||||
| Financial results, net |
5,212 | (4,291 | ) | (10,872 | ) | N.M | (5,409 | ) | (15,163 | ) | N.M | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Net profit before income tax |
(85,932 | ) | 7,679 | 19,708 | N.M | (80,335 | ) | 27,387 | N.M | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Income tax |
884 | (9,926 | ) | (65,970 | ) | N.M | 1,638 | (75,896 | ) | N.M | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Net profit for the period |
(85,048 | ) | (2,247 | ) | (46,262 | ) | -45.6 | % | (78,697 | ) | (48,509 | ) | -38.4 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Net profit for shareholders of the parent company |
(84,630 | ) | (2,066 | ) | (45,017 | ) | -46.8 | % | (78,418 | ) | (47,083 | ) | -40.0 | % | ||||||||||||||
| Net profits for non-controlling interest |
(418 | ) | (181 | ) | (1,245 | ) | N.M | (279 | ) | (1,426 | ) | N.M | ||||||||||||||||
| Earnings per share attributable to shareholders of the parent company (basic and diluted) |
(215.67 | ) | (5.26 | ) | (114.67 | ) | -46.8 | % | (199.84) | (119.93) | -40.0% | |||||||||||||||||
| Other comprehensive income |
55,744 | 65,658 | 34,904 | -37.4 | % | 99,018 | 100,562 | 1.6 | % | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Total comprehensive income for the period |
(29,304 | ) | 63,411 | (11,358 | ) | -61.2 | % | 20,321 | 52,053 | N.M | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Note: Information reported in accordance with International Financial Reporting Standards (IFRS).
17
Table of Contents
6.2. CONSOLIDATED BALANCE SHEET
| Consolidated Balance Sheet | In US$ million | In AR$ million | ||||||||||||||
| Unaudited Figures |
31-Dec-20 | 30-Jun-21 | 31-Dec-20 | 30-Jun-21 | ||||||||||||
| Non-current Assets |
||||||||||||||||
| Intangible assets |
465 | 458 | 39,119 | 43,799 | ||||||||||||
| Properties, plant and equipment |
16,413 | 15,886 | 1,379,527 | 1,518,979 | ||||||||||||
| Assets for leasing |
524 | 488 | 44,081 | 46,696 | ||||||||||||
| Investments in companies and joint ventures |
1,274 | 1,313 | 107,112 | 125,539 | ||||||||||||
| Deferred tax assets, net |
31 | 26 | 2,629 | 2,532 | ||||||||||||
| Other receivables |
174 | 174 | 14,657 | 16,684 | ||||||||||||
| Trade receivables |
101 | 55 | 8,531 | 5,276 | ||||||||||||
| Investment in financial assets |
0 | 36 | 0 | 3,447 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total Non-current Assets |
18,985 | 18,437 | 1,595,656 | 1,762,952 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Current Assets |
||||||||||||||||
| Assets held for disposal |
6 | 0 | 494 | 0 | ||||||||||||
| Inventories |
1,191 | 1,299 | 100,137 | 124,197 | ||||||||||||
| Contract assets |
10 | 15 | 871 | 1,401 | ||||||||||||
| Other receivables |
409 | 463 | 34,369 | 44,256 | ||||||||||||
| Trade receivables |
1,287 | 1,469 | 108,146 | 140,500 | ||||||||||||
| Investment in financial assets |
344 | 395 | 28,934 | 37,730 | ||||||||||||
| Cash and cash equivalents |
650 | 540 | 54,618 | 51,669 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total Current Assets |
3,897 | 4,181 | 327,569 | 399,753 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total Assets |
22,882 | 22,618 | 1,923,225 | 2,162,705 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Shareholders’ Equity |
||||||||||||||||
| Shareholders’ contributions |
124 | 111 | 10,385 | 10,588 | ||||||||||||
| Reserves, other comprehensive income and retained earnings |
7,934 | 7,517 | 666,845 | 718,759 | ||||||||||||
| Non-controlling interest |
73 | 66 | 6,165 | 6,304 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total Shareholders´ Equity |
8,131 | 7,693 | 683,395 | 735,651 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Non-current Liabilities |
||||||||||||||||
| Provisions |
2,219 | 2,292 | 186,488 | 219,153 | ||||||||||||
| Deferred tax liabilities, net |
1,423 | 2,054 | 119,609 | 196,445 | ||||||||||||
| Income tax payable |
42 | 35 | 3,571 | 3,313 | ||||||||||||
| Other taxes payable |
3 | 2 | 215 | 194 | ||||||||||||
| Salaries and social security |
46 | 46 | 3,860 | 4,434 | ||||||||||||
| Liabilities from leasing |
288 | 277 | 24,172 | 26,476 | ||||||||||||
| Loans |
6,277 | 6,160 | 527,575 | 588,984 | ||||||||||||
| Other liabilities |
35 | 9 | 2,961 | 903 | ||||||||||||
| Accounts payable |
8 | 11 | 710 | 1,059 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total non-current Liabilities |
10,341 | 10,886 | 869,161 | 1,040,961 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Current Liabilities |
||||||||||||||||
| Provisions |
73 | 78 | 6,133 | 7,421 | ||||||||||||
| Contract liabilities |
81 | 78 | 6,824 | 7,432 | ||||||||||||
| Income tax payable |
9 | 10 | 740 | 968 | ||||||||||||
| Other taxes payable |
188 | 207 | 15,764 | 19,823 | ||||||||||||
| Salaries and social security |
178 | 175 | 14,934 | 16,760 | ||||||||||||
| Liabilities from leasing |
263 | 234 | 22,098 | 22,377 | ||||||||||||
| Loans |
1,793 | 1,274 | 150,731 | 121,858 | ||||||||||||
| Other liabilities |
108 | 87 | 9,062 | 8,332 | ||||||||||||
| Accounts payable |
1,718 | 1,894 | 144,383 | 181,122 | ||||||||||||
| Total Current Liabilities |
4,410 | 4,038 | 370,669 | 386,093 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total Liabilities |
14,751 | 14,924 | 1,239,830 | 1,427,054 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total Liabilities and Shareholders’ Equity |
22,882 | 22,618 | 1,923,225 | 2,162,705 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
Note: Information reported in accordance with International Financial Reporting Standards (IFRS).
18
Table of Contents
6.3. CONSOLIDATED STATEMENT OF CASH FLOW
| Cash Flow Statement Unaudited Figures, in US$ million |
2Q20 | 1Q21 | 2Q21 | Y/Y D | 1H20 | 1H21 | Y/Y D | |||||||||||||||||||||
| Operating activities |
||||||||||||||||||||||||||||
| Net income |
(1,258 | ) | (25 | ) | (492 | ) | -60.9 | % | (1,155 | ) | (517 | ) | -55.2 | % | ||||||||||||||
| Income of interests in companies and joint ventures |
(31 | ) | (58 | ) | (15 | ) | -52.9 | % | (54 | ) | (73 | ) | 34.8 | % | ||||||||||||||
| Depreciation of property, plant and equipment |
634 | 688 | 772 | 21.6 | % | 1,345 | 1,459 | 8.5 | % | |||||||||||||||||||
| Depreciation of the right-of-use assets |
58 | 48 | 51 | -12.7 | % | 136 | 98 | -27.4 | % | |||||||||||||||||||
| Amortization of intangible assets |
11 | 12 | 13 | 16.9 | % | 22 | 24 | 12.5 | % | |||||||||||||||||||
| Losses of property, plant and equipment and intangible assets and consumption of materials |
39 | 83 | 87 | N.M | 116 | 170 | 46.8 | % | ||||||||||||||||||||
| Income tax charge |
(12 | ) | 112 | 701 | N.M | (25 | ) | 813 | N.M | |||||||||||||||||||
| Net increase in provisions |
182 | 65 | 79 | -56.4 | % | 245 | 144 | -41.2 | % | |||||||||||||||||||
| Impairment of property, plant and equipment and intangible assets |
850 | — | — | -100.0 | % | 850 | — | -100.0 | % | |||||||||||||||||||
| Interest, exchange differences and others |
(115 | ) | 43 | 122 | N.M | 47 | 165 | N.M | ||||||||||||||||||||
| Stock compensation plans |
2 | 1 | 1 | -42.7 | % | 5 | 3 | -43.3 | % | |||||||||||||||||||
| Accrued insurance |
(40 | ) | — | — | N.M | (48 | ) | — | N.M | |||||||||||||||||||
| Results from exchange of debt instruments |
— | (21 | ) | — | N.M | — | (21 | ) | N.M | |||||||||||||||||||
| Results for assignment of participation in areas |
(87 | ) | — | (5 | ) | -94.2 | % | (191 | ) | (5 | ) | -97.4 | % | |||||||||||||||
| Results from sales of assets held for disposal |
— | — | (33 | ) | N.M | — | (33 | ) | N.M | |||||||||||||||||||
| Changes in assets and liabilities |
||||||||||||||||||||||||||||
| Trade receivables |
175 | 21 | (162 | ) | N.M | 426 | (142 | ) | N.M | |||||||||||||||||||
| Other receivables |
167 | (93 | ) | 55 | -66.8 | % | 102 | (38 | ) | N.M | ||||||||||||||||||
| Inventories |
82 | (25 | ) | (86 | ) | N.M | (96 | ) | (112 | ) | 15.9 | % | ||||||||||||||||
| Accounts payable |
(177 | ) | 191 | (63 | ) | -64.3 | % | (233 | ) | 128 | N.M | |||||||||||||||||
| Other taxes payable |
0 | 91 | (57 | ) | N.M | 6 | 34 | N.M | ||||||||||||||||||||
| Salaries and Social Security |
14 | (28 | ) | 13 | -3.9 | % | (15 | ) | (14 | ) | -4.8 | % | ||||||||||||||||
| Other liabilities |
(0 | ) | (27 | ) | (17 | ) | N.M | 2 | (44 | ) | N.M | |||||||||||||||||
| Decrease in provisions included in liabilities for payments / utilization |
(4 | ) | (21 | ) | (10 | ) | N.M | (26 | ) | (31 | ) | 16.0 | % | |||||||||||||||
| Contract Assets |
4 | 5 | (11 | ) | N.M | (5 | ) | (6 | ) | 18.0 | % | |||||||||||||||||
| Contract Liabilities |
(19 | ) | (7 | ) | 14 | N.M | (18 | ) | 7 | N.M | ||||||||||||||||||
| Dividends received |
29 | 0 | 40 | 37.8 | % | 31 | 40 | 29.4 | % | |||||||||||||||||||
| Insurance charge for loss of profit |
11 | 0 | 5 | -52.2 | % | 15 | 5 | -64.0 | % | |||||||||||||||||||
| Income tax payments |
(15 | ) | (1 | ) | (1 | ) | -90.8 | % | (22 | ) | (3 | ) | -87.3 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Net cash flow from operating activities |
498 | 1,054 | 1,001 | N.M | 1,459 | 2,055 | 40.8 | % | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Investing activities |
||||||||||||||||||||||||||||
| Acquisitions of property, plant and equipment and intangible assets |
(286 | ) | (493 | ) | (500 | ) | 74.6 | % | (1,078 | ) | (993 | ) | -7.9 | % | ||||||||||||||
| Proceeds from sales of financial assets |
417 | 105 | 120 | -71.2 | % | 417 | 225 | -46.1 | % | |||||||||||||||||||
| Payments for the acquisition of financial assets |
(291 | ) | (148 | ) | (191 | ) | -34.5 | % | (291 | ) | (339 | ) | 16.4 | % | ||||||||||||||
| Interest received from financial assets |
— | 13 | 22 | N.M | — | 35 | N.M | |||||||||||||||||||||
| Collection for assignment of participation in areas |
111 | — | 17 | -84.4 | % | 215 | 17 | -91.9 | % | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Net cash flow from investing activities |
(49 | ) | (523 | ) | (531 | ) | N.M | (737 | ) | (1,055 | ) | 43.1 | % | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Financing activities |
||||||||||||||||||||||||||||
| Payment of loans |
(860 | ) | (537 | ) | (543 | ) | -36.8 | % | (1,201 | ) | (1,080 | ) | -10.1 | % | ||||||||||||||
| Payment of interests |
(200 | ) | (200 | ) | (131 | ) | -34.8 | % | (462 | ) | (330 | ) | -28.5 | % | ||||||||||||||
| Proceeds from loans |
834 | 291 | 226 | -72.9 | % | 1,245 | 516 | -58.5 | % | |||||||||||||||||||
| Acquisition of own shares |
— | — | — | N.M | — | — | N.M | |||||||||||||||||||||
| Payment of leasing |
(61 | ) | (77 | ) | (77 | ) | 25.5 | % | (158 | ) | (153 | ) | -2.9 | % | ||||||||||||||
| Payment of interests related to income tax |
(3 | ) | (0 | ) | (0 | ) | -94.3 | % | (7 | ) | (0 | ) | -96.7 | % | ||||||||||||||
| Payment of dividends |
— | — | — | N.M | — | — | N.M | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Net cash flow from financing activities |
(290 | ) | (522 | ) | (525 | ) | 81.3 | % | (583 | ) | (1,047 | ) | 79.7 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Effect of changes in exchange rates on cash and cash equivalents |
54 | 10 | 6 | -88.3 | % | 123 | 17 | -86.4 | % | |||||||||||||||||||
| Translation adjustments |
(100 | ) | (56 | ) | (23 | ) | -77.0 | % | (181 | ) | (79 | ) | -56.2 | % | ||||||||||||||
| Increase (decrease) in cash and cash equivalents |
113 | (37 | ) | (72 | ) | N.M | 82 | (109 | ) | N.M | ||||||||||||||||||
| Cash and cash equivalents at the beginning of the period |
1,074 | 650 | 612 | -43.0 | % | 1,106 | 650 | -41.2 | % | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Cash and cash equivalents at the end of the period |
1,187 | 612 | 540 | -54.5 | % | 1,187 | 540 | -54.5 | % | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
19
Table of Contents
| Cash Flow Statement Unaudited Figures, in AR$ million |
2Q20 | 1Q21 | 2Q21 | Y/Y D | 1H20 | 1H21 | Y/Y D | |||||||||||||||||||||
| Operating activities |
||||||||||||||||||||||||||||
| Net income |
(85,048 | ) | (2,247 | ) | (46,262 | ) | -45.6 | % | (78,697 | ) | (48,509 | ) | -38.4 | % | ||||||||||||||
| Income of interests in companies and joint ventures |
(2,300 | ) | (5,116 | ) | (1,439 | ) | -37.4 | % | (3,720 | ) | (6,555 | ) | 76.2 | % | ||||||||||||||
| Depreciation of property, plant and equipment |
42,936 | 60,875 | 72,552 | 69.0 | % | 86,572 | 133,427 | 54.1 | % | |||||||||||||||||||
| Depreciation of the right-of-use assets |
3,927 | 4,214 | 4,768 | 21.4 | % | 8,679 | 8,982 | 3.5 | % | |||||||||||||||||||
| Amortization of intangible assets |
740 | 1,042 | 1,197 | 61.8 | % | 1,409 | 2,239 | 58.9 | % | |||||||||||||||||||
| Losses of property, plant and equipment and intangible assets and consumption of materials |
2,623 | 7,369 | 8,186 | N.M | 7,360 | 15,555 | N.M | |||||||||||||||||||||
| Income tax charge |
(884 | ) | 9,926 | 65,970 | N.M | (1,638 | ) | 75,896 | N.M | |||||||||||||||||||
| Net increase in provisions |
12,303 | 5,723 | 7,455 | -39.4 | % | 16,165 | 13,178 | -18.5 | % | |||||||||||||||||||
| Impairment of property, plant and equipment and intangible assets |
57,429 | — | — | -100.0 | % | 57,429 | — | -100.0 | % | |||||||||||||||||||
| Interest, exchange differences and others |
(7,600 | ) | 3,814 | 11,375 | N.M | 2,240 | 15,189 | N.M | ||||||||||||||||||||
| Stock compensation plans |
153 | 119 | 122 | -20.3 | % | 300 | 241 | -19.7 | % | |||||||||||||||||||
| Accrued insurance |
(2,731 | ) | — | — | N.M | (3,189 | ) | — | N.M | |||||||||||||||||||
| Results from exchange of debt instruments |
— | (1,855 | ) | — | N.M | — | (1,855 | ) | N.M | |||||||||||||||||||
| Results for assignment of participation in areas |
(5,877 | ) | — | (472 | ) | -92.0 | % | (12,233 | ) | (472 | ) | -96.1 | % | |||||||||||||||
| Results from sales of assets held for disposal |
— | — | (3,121 | ) | N.M | — | (3,121 | ) | N.M | |||||||||||||||||||
| Changes in assets and liabilities |
||||||||||||||||||||||||||||
| Trade receivables |
11,829 | 1,816 | (15,252 | ) | N.M | 27,219 | (13,436 | ) | N.M | |||||||||||||||||||
| Other receivables |
11,262 | (8,263 | ) | 5,202 | -53.8 | % | 7,267 | (3,061 | ) | N.M | ||||||||||||||||||
| Inventories |
5,563 | (2,247 | ) | (8,102 | ) | N.M | (5,389 | ) | (10,349 | ) | 92.0 | % | ||||||||||||||||
| Accounts payable |
(11,976 | ) | 16,880 | (5,947 | ) | -50.3 | % | (15,382 | ) | 10,933 | N.M | |||||||||||||||||
| Other taxes payable |
12 | 8,067 | (5,339 | ) | N.M | 377 | 2,728 | N.M | ||||||||||||||||||||
| Salaries and Social Security |
932 | (2,449 | ) | 1,246 | 33.7 | % | (843 | ) | (1,203 | ) | 42.7 | % | ||||||||||||||||
| Other liabilities |
(22 | ) | (2,377 | ) | (1,593 | ) | N.M | 151 | (3,970 | ) | N.M | |||||||||||||||||
| Decrease in provisions included in liabilities for payments / utilization |
(288 | ) | (1,821 | ) | (933 | ) | N.M | (1,639 | ) | (2,754 | ) | 68.0 | % | |||||||||||||||
| Contract Assets |
254 | 480 | (1,028 | ) | N.M | (263 | ) | (548 | ) | N.M | ||||||||||||||||||
| Contract Liabilities |
(1,305 | ) | (611 | ) | 1,327 | N.M | (1,219 | ) | 716 | N.M | ||||||||||||||||||
| Dividends received |
1,966 | 28 | 3,766 | 91.6 | % | 2,096 | 3,794 | 81.0 | % | |||||||||||||||||||
| Insurance charge for loss of profit |
757 | 12 | 503 | -33.6 | % | 1,004 | 515 | -48.7 | % | |||||||||||||||||||
| Income tax payments |
(1,010 | ) | (129 | ) | (129 | ) | -87.2 | % | (1,456 | ) | (258 | ) | -82.3 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Net cash flow from operating activities |
33,645 | 93,250 | 94,052 | N.M | 92,600 | 187,302 | N.M | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Investing activities |
||||||||||||||||||||||||||||
| Acquisitions of property, plant and equipment and intangible assets |
(19,346 | ) | (43,640 | ) | (46,976 | ) | N.M | (67,886 | ) | (90,616 | ) | 33.5 | % | |||||||||||||||
| Proceeds from sales of financial assets |
28,172 | 9,256 | 11,284 | -59.9 | % | 28,172 | 20,540 | -27.1 | % | |||||||||||||||||||
| Payments for the acquisition of financial assets |
(19,649 | ) | (13,094 | ) | (17,909 | ) | -8.9 | % | (19,649 | ) | (31,003 | ) | 57.8 | % | ||||||||||||||
| Interest received from financial assets |
— | 1,172 | 2,049 | N.M | — | 3,221 | N.M | |||||||||||||||||||||
| Collection for assignment of participation in areas |
7,511 | — | 1,634 | -78.2 | % | 13,867 | 1,634 | -88.2 | % | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Net cash flow from investing activities |
(3,312 | ) | (46,306 | ) | (49,918 | ) | N.M | (45,496 | ) | (96,224 | ) | N.M | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Financing activities |
||||||||||||||||||||||||||||
| Payment of loans |
(58,093 | ) | (47,468 | ) | (51,050 | ) | -12.1 | % | (79,057 | ) | (98,518 | ) | 24.6 | % | ||||||||||||||
| Payment of interests |
(13,544 | ) | (17,663 | ) | (12,281 | ) | -9.3 | % | (29,587 | ) | (29,944 | ) | 1.2 | % | ||||||||||||||
| Proceeds from loans |
56,367 | 25,713 | 21,208 | -62.4 | % | 81,588 | 46,921 | -42.5 | % | |||||||||||||||||||
| Acquisition of own shares |
— | — | — | N.M | — | — | N.M | |||||||||||||||||||||
| Payment of leasing |
(4,123 | ) | (6,783 | ) | (7,197 | ) | 74.6 | % | (10,059 | ) | (13,980 | ) | 39.0 | % | ||||||||||||||
| Payment of interests related to income tax |
(176 | ) | (7 | ) | (14 | ) | -92.0 | % | (440 | ) | (21 | ) | -95.2 | % | ||||||||||||||
| Payment of dividends |
— | — | — | N.M | — | — | N.M | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Net cash flow from financing activities |
(19,569 | ) | (46,208 | ) | (49,334 | ) | N.M | (37,555 | ) | (95,542 | ) | N.M | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Effect of changes in exchange rates on cash and cash equivalents |
3,645 | 922 | 593 | -83.7 | % | 7,892 | 1,515 | -80.8 | % | |||||||||||||||||||
| Increase (decrease) in cash and cash equivalents |
14,409 | 1,658 | (4,607 | ) | N.M | 17,441 | (2,949 | ) | N.M | |||||||||||||||||||
| Cash and cash equivalents at the beginning of the period |
69,132 | 54,618 | 56,276 | -18.6 | % | 66,100 | 54,618 | -17.4 | % | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Cash and cash equivalents at the end of the period |
83,541 | 56,276 | 51,669 | -38.2 | % | 83,541 | 51,669 | -38.2 | % | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Note: Information reported in accordance with International Financial Reporting Standards (IFRS).
20
Table of Contents
| Main physical magnitudes Unaudited Figures |
Unit | 1Q20 | 2Q20 | 3Q20 | 4Q20 | Cum. 2020 | 1Q21 | 2Q21 | Cum. 2021 | |||||||||||||||||||||||||
| Total Production |
Kboe | 46,439 | 42,480 | 43,101 | 38,901 | 170,920 | 39,330 | 41,961 | 81,291 | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
| Crude oil production |
Kbbl | 20,488 | 18,274 | 18,621 | 18,311 | 75,693 | 18,691 | 19,125 | 37,816 | |||||||||||||||||||||||||
| NGL production |
Kbbl | 4,090 | 4,162 | 4,121 | 995 | 13,369 | 2,653 | 3,329 | 5,982 | |||||||||||||||||||||||||
| Gas production |
Mm3 | 3,476 | 3,187 | 3,237 | 3,116 | 13,015 | 2,860 | 3,102 | 5,961 | |||||||||||||||||||||||||
| Henry Hub |
USD/MMBTU | 1.9 | 1.8 | 2.1 | 2.8 | 2.1 | 2.7 | 3.0 | 2.9 | |||||||||||||||||||||||||
| Brent |
USD/bbl | 50.4 | 29.3 | 43.0 | 44.3 | 41.8 | 60.8 | 66.1 | 63.4 | |||||||||||||||||||||||||
| Sales volume (YPF stand alone) |
||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
| Sales of refined products |
Km3 | 4,101 | 3,041 | 3,771 | 4,056 | 14,970 | 4,140 | 4,264 | 8,405 | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
| Domestic market |
Km3 | 3,541 | 2,679 | 3,495 | 3,890 | 13,606 | 3,901 | 3,976 | 7,877 | |||||||||||||||||||||||||
| Gasoline |
Km3 | 1,222 | 579 | 816 | 1,081 | 3,698 | 1,240 | 1,032 | 2,271 | |||||||||||||||||||||||||
| Diesel |
Km3 | 1,722 | 1,578 | 1,931 | 1,812 | 7,044 | 1,811 | 1,931 | 3,742 | |||||||||||||||||||||||||
| Jet fuel and kerosene |
Km3 | 126 | 13 | 14 | 27 | 180 | 65 | 49 | 114 | |||||||||||||||||||||||||
| Fuel Oil |
Km3 | 4 | 29 | 157 | 85 | 275 | 102 | 73 | 175 | |||||||||||||||||||||||||
| LPG |
Km3 | 136 | 182 | 229 | 122 | 670 | 130 | 195 | 325 | |||||||||||||||||||||||||
| Other (*) |
Km3 | 330 | 298 | 348 | 763 | 1,739 | 553 | 697 | 1,250 | |||||||||||||||||||||||||
| Export market |
Km3 | 561 | 362 | 275 | 166 | 1,364 | 239 | 288 | 527 | |||||||||||||||||||||||||
| Petrochemical naphtha |
Km3 | 86 | 104 | 52 | 24 | 266 | 0 | 96 | 96 | |||||||||||||||||||||||||
| Jet fuel and kerosene |
Km3 | 124 | 10 | 10 | 22 | 165 | 25 | 27 | 52 | |||||||||||||||||||||||||
| LPG |
Km3 | 141 | 23 | 33 | 38 | 235 | 74 | 23 | 97 | |||||||||||||||||||||||||
| Bunker (Diesel and Fuel Oil) |
Km3 | 103 | 103 | 94 | 51 | 350 | 52 | 64 | 115 | |||||||||||||||||||||||||
| Other (*) |
Km3 | 107 | 122 | 87 | 31 | 347 | 88 | 79 | 166 | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
| Sales of petrochemical products |
Ktn | 227 | 147 | 192 | 152 | 717 | 247 | 229 | 476 | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
| Domestic market |
Ktn | 166 | 95 | 147 | 116 | 524 | 166 | 179 | 345 | |||||||||||||||||||||||||
| Methanol |
Ktn | 55 | 22 | 36 | 17 | 131 | 43 | 57 | 100 | |||||||||||||||||||||||||
| Other |
Ktn | 111 | 72 | 110 | 99 | 393 | 123 | 121 | 244 | |||||||||||||||||||||||||
| Export market |
Ktn | 61 | 52 | 45 | 36 | 193 | 81 | 50 | 131 | |||||||||||||||||||||||||
| Methanol |
Ktn | 27 | 6 | 2 | 15 | 50 | 45 | 18 | 63 | |||||||||||||||||||||||||
| Other |
Ktn | 33 | 46 | 43 | 21 | 143 | 37 | 32 | 68 | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
| Grain, flours and oils |
Ktn | 238 | 523 | 459 | 217 | 1,438 | 294 | 456 | 751 | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
| Domestic market |
Ktn | 33 | 97 | 57 | 29 | 216 | 11 | 11 | 22 | |||||||||||||||||||||||||
| Export market |
Ktn | 205 | 427 | 401 | 189 | 1,221 | 284 | 445 | 729 | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
| Fertilizers |
Ktn | 91 | 227 | 233 | 131 | 682 | 186 | 328 | 514 | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
| Domestic market |
Ktn | 91 | 227 | 233 | 131 | 682 | 186 | 328 | 514 | |||||||||||||||||||||||||
| Main products imported (YPF stand alone) |
||||||||||||||||||||||||||||||||||
| Gasolines |
Km3 | 51 | 0 | 0 | 0 | 51 | 82 | 6 | 88 | |||||||||||||||||||||||||
| Jet Fuel |
Km3 | 0 | 0 | 0 | 8 | 8 | 0 | 4 | 4 | |||||||||||||||||||||||||
| Diesel |
Km3 | 78 | 150 | 82 | 61 | 371 | 46 | 155 | 201 | |||||||||||||||||||||||||
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.
21
Table of Contents
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.
22
Table of Contents
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: August 10, 2021 | By: | /s/ Santiago Wesenack | ||||
| Name: |
Santiago Wesenack | |||||
| Title: |
Market Relations Officer | |||||