YPF’s profits tumble

BUENOS AIRES, May 10, 2017 – Argentine NOC YPF saw a fall in profits in its first quarter financial results, which were released by the company on Tuesday.

Net income for the period was ARS 192 million (USD 12.5 million), a 78% slide from ARS 855 million (USD 58.5 million) in profits during the same period a year earlier and something YPF partially attributed to negative foreign exchange effects on liabilities.

The loss in profitability came despite increases in revenue of nearly 22% from the first quarter of last year, totaling ARS 57 billion (USD 3.7 billion). Adjusted EBITDA also came out strong, rising 34.7% to ARS 16.8 billion (USD 1.1 billion).

YPF also said it had cut capital expenditures to almost ARS 12 billion (USD 776.2 million), 18.9% less than it spent on capex in Q1 2016.

Quarterly production fell to 573,500 boepd, 1.5% lower than the same period in 2016, a result of a 6% drop in crude oil production and a 2.8% increase in natural gas production.

The NOC reported 96 new wells started production in the quarter, including 14 in the Vaca Muerta shale play. It also completed 11 exploratory wells, five of which were for crude oil and six for gas.

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