6-K 1 d583170d6k.htm FORM 6-K Form 6-K
Table of Contents

 

 

FORM 6-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

Report of Foreign Issuer

Pursuant to Rule 13a-16 or 15d-16 of

the Securities Exchange Act of 1934

For the month of August, 2013

Commission File Number: 001-12102

 

 

YPF Sociedad Anónima

(Exact name of registrant as specified in its charter)

 

 

Macacha Güemes 515

C1106BKK Buenos Aires, Argentina

(Address of principal executive office)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

Form 20-F  x            Form 40-F  ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):

Yes  ¨             No  x

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):

Yes  ¨             No  x

 

 

 


Table of Contents

YPF Sociedád Anonima

TABLE OF CONTENTS

ITEM

 

1       Translation of Consolidated Results Q2 2013.

  

 

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YPF S.A.

Consolidated Results

Q2 2013

 


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LOGO   Consolidated Results Q2 2013        

 

 

 

 

CONTENT

 

1. MAIN MILESTONES AND ECONOMIC MAGNITUDES OF THE SECOND QUARTER 2013

     3   

2. ANALYSIS OF OPERATING RESULTS

     5   

2.1 UPSTREAM

     5   

2.2 DOWNSTREAM

     7   

2.3 CORPORATE

     9   

2.4 RELATED COMPANIES

     9   

3. LIQUIDITY AND SOURCES OF CAPITAL

     9   

4. RECURRENT RESULTS ESTIMATE

     10   

5. LA PLATA REFINERY INCIDENT UPDATE

     11   

6. GASA ACQUSITION

     12   

7. SHALE OIL DEVELOPMENT AGREEMENT

     13   

8. TABLES AND NOTES

     14   

8.1 CONSOLIDATED STATEMENT OF INCOME

     15   

8.2 CONSOLIDATED BALANCE SHEET

     16   

8.3 CONSOLIDATED STATEMENT OF CASH FLOWS

     17   

8.4 MAIN PHYSICAL MAGNITUDES

     18   

 

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Recurring operating income in the second quarter of 2013 reached ARS 2,218 million

 

2Q
2012
     1Q
2013
     2Q
2013
     Var.%
2013/2012
         Jan-Jun
2012
     Jan-Jun
2013
     Var.%
2013/2012
 
                           RECURRING RESULTS (*)                     
  16,084         18,634         21,941         36.4  

Revenues

(MARS)

     30,934         40,575         31.2
  1,870         2,533         2,218         18.6  

Recurring operating Income

(MARS)

     4,369         4,751         8.8
  833         1,258         1,091         30.9  

Recurring net income (**)

(MARS)

     2,127         2,349         10.4
  4,118         5,365         5,765         40.0  

Recurring EBITDA

(MARS)

     8,565         11,130         29.9
  2.12         3.20         2.77         30.9  

Recurring earnings per share

(ARS/share)

     5.41         5.97         10.4
  1,837         2,643         2,911         58.5  

Recurring Comprehensive Income 

(MARS)

     3,799         5,554         46.2
  3,412         4,282         6,510         90.8  

Capital Expenditures (***)

(MARS)

     5,544         10,792         94.7 %

Note: Unaudited amounts.

EBITDA = net income + net interest + income tax + deferred income tax + amortizations

 

(*) Impact of provision relating to claims arising from AES Uruguaiana Emprendimientos S.A. (AESU) and Transportadora de Gas del Mercosur S.A. (TGM) not included.
(**) Attributable to controlling shareholder.
(***) Fixed assets acquisition by GASA as of acquisition date for ARS 3,137 million not included.

1. MAIN MILESTONES AND ECONOMIC MAGNITUDES OF THE SECOND QUARTER 2013

 

   

Ordinary revenues for Q2 2013 were ARS 21,941 million, a 36.4% increase compared to Q2 2012.

 

   

Recurring operating income for Q2 2013 was 18.6% higher than same period in 2012 to reach ARS 2,218 million.

 

   

Recurring EBITDA for Q2 2013 was ARS 5,765 million, a 40% increase.

 

   

Recurring net income for Q2 2013 was ARS 1,091 million, a 30.9% increase compared to same period in 2012.

 

   

Investment in fixed assets for the second quarter of 2013 was ARS 6,510 million, a 90.8% increase compared to Q2 2012 investments of ARS 3,412 million.

 

   

During Q2 2013, crude oil production increased by 0.4% compared to Q2 2012, to reach 228.2 Kbbld, while natural gas production was 33.0 Mm3d, a 3.2% decrease compared to Q2 2012. It should be noted that the downward trend in production seen in recent years continues to revert, as evidenced when comparing current crude oil production to immediately preceding quarter, which shows a daily average growth by 0.8% (+1.9 Kbbld) and 5.1% ( +1.6 Mm3d) respectively.

 

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In the downstream business, during Q2 2013, the processing level was 76%, a 15.9% decrease compared to Q2 2012 due to La Plata refinery incident.

In order to reflect the business evolution net of non recurring and significant events taking place during Q2 2013, the category ‘recurring results’ does not include the impact of the ARS 855 million provision on assets relating to claims arising from certain gas export and transportation contracts with Brazil cancelled in 2009, in respect of which a partial award was issued by the Arbitral Tribunal of the International Chamber Commerce against YPF, which the Company will continue to appeal.

Recurring operating income for Q2 2013 was ARS 2,218 million, 18.6% higher than that for same period in 2012, mainly due to the fact that stronger sales, measured in terms of volume as well as price, from our main products exceed increases in production costs. Positive results were achieved in spite of the economic impact of unprecedented storms affecting the La Plata refinery that crippled both physical assets and operating margins in our Downstream business segment.

Ordinary income in the second quarter of 2013 was ARS 21,941 million, a 36.4% increase compared to Q2 2012. This increase was driven mainly by a rise in income from sales of liquid fuel in the domestic market as a consequence of higher volumes sold (increases of 14.6% in gasoline and 4.4% in diesel) and higher prices (increases of 29.1% in gasoline and 22.9% in diesel). Also, it is important to mention the positive impact of higher income from natural gas of ARS 1,239 million as a consequence of the implementation of the Incentive Scheme for Additional Injection of Natural Gas and the adjustment of the Argentine peso-denominated average price for the CNG and industries segments. As for exports, the sale of 1.99 MBbl for ARS 1,029 million in the current quarter is worth mentioning considering availability and lower processing capacity at La Plata refinery, as aforementioned, while no exports were recorded in 2012.

Costs of sales for Q2 2013 increased by 36.8% compared to Q2 2012. Purchases increased by 44.0% compared to Q2 2012 mainly as a consequence of the rise in volumes of gasoil, gasoline and JP1 imported in order to meet our demand despite the incident affecting La Plata refinery. In turn, other costs of sales increased by 31.7%, mainly due to higher expenses relating to service outsourcing, equipment and facilities rental in addition to substantially higher crude oil royalties paid (as a consequence of higher wellhead prices in pesos), higher amortization relating to higher investment activity and, to a lesser extent, increased payroll expenses.

Recurring net income for the period was ARS 1.091 million, 30.9% higher compared to Q2 2012.

Total investment in fixed assets for the quarter was ARS 6,510 million, 90.8% higher than Q2 2012. This increased investment stems from a boost in upstream development activities, mainly in unconventional areas, and advances in the set of projects in our Downstream segment.

 

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2. ANALYSIS OF OPERATING RESULTS

2.1 UPSTREAM

 

2Q
2012

     1Q
2013
     2Q
2013
     Var.%
2013/2012
   

(Unaudited Figures)

   Jan-Jun
2012
     Jan-Jun
2013
     Var.%
2013/2012
 
  1,458         1,872         1,443         -1.0  

Recurring operating Income(*)

(MARS)

     3,571         3,315         -7.2
  7,517         8,837         10,224         36.0  

Revenues

(MARS)

     15,169         19,061         25.7
  227.3         226.3         228.2         0.4  

Crude oil production

(Kbbld)

     227.6         227.3         -0.1
  42.0         54.6         45.7         8.8  

NGL production

(Kbbld)

     48.3         50.2         3.9
  34.1         31.4         33.0         -3.2  

Gas production

(Mm3d)

     33.3         32.2         -3.3
  483.6         478.3         481.4         -0.5  

Total production

(Kboed)

     485.5         479.8         -1.2
  174         76         170         -2.3  

Exploration costs

(MARS)

     288         246         -14.7
  2,434         3,654         5,514         126.6  

Capital Expenditures

(MARS)

     4,106         9,168         123.3
  1,650         1,841         2,173         31.7  

Depreciation

(MARS)

     3,180         4,014         26.2
           International Prices         
  108.4         112.5         102.6         -5.4  

Brent (**)

(USD/bbl)

     113.5         107.5         -5.3
  2.4         3.5         4.1         74.2  

Gas Henry Hub (**)

(USD/Mmbtu)

     2.4         3.8         58.3
           Realization Prices         
  70.4         68.6         71.4         1.4  

Crude oil prices in domestic market Period average 

(USD/bbl)

     70.1         70.0         -0.1
  1.86         3.80         3.80         104.4  

Average gas price (***)

(USD/Mmbtu)

     2.26         3.80         68.2 %

 

(*) Impact of provision relating to claims arising from AES Uruguaiana Emprendimientos S.A. (AESU) and Transportadora de Gas del Mercosur S.A. (TGM) not included.
(**) Source: Reuters
(***) Average gas price of Q1 2013 was recalculated

Upstream recurring operating income was ARS 1,443 million, a 1% decrease compared to Q2 2012.

Sales increased by 36% compared to Q2 2012, mainly due to a 32.9% increase in crude oil and natural gas sales. Crude oil sales increased on account of a 19.6% increase in the price per barrel in terms of Argentine pesos and to a lesser extend due to higher volumes produced (+0.4%), including the export of 1.99 MBbl of crude oil for ARS 1,029 million in the current quarter while no exports were recorded in 2012. Also, we received higher income relating to natural gas sales, 116% above Q2 2012, as described above.

 

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The dollar-denominated price for crude oil in the local market increased by 1.4% to reach 71.4 USD/bbl in the second quarter of 2013. As for natural gas, the average income was 3.80 USD/Mmbtu, a 104.4% increase compared to Q2 2012, mainly due to the effect of the implementation of the Incentive Scheme for Additional Injection of Natural Gas, allowing the company to obtain 7.5 USD/Mmbtu for additional gas injected and sales to the CNG and industries segments. Crude oil and LNG production were 228.2 Kbbld and 45.7 Kbbld respectively, 0.4% and 8.8% higher than for Q2 2012. Natural gas production was 33.0 Mm3d in the second quarter of 2013, 3.2% below that of same period in 2012. Thus, total production of hydrocarbons in the second quarter of 2013 was 481.4 Kbped, compared to 483.6 Kbped for same period in 2012. It should be noted that the downward trend in production seen in recent years continues to revert, as evidenced when comparing current crude oil production to the immediately preceding quarter, which shows a daily average growth by 0.8% (+1.9 Kbbld) and 5.1% ( +1.6 Mm3d) for oil and natural gas, respectively.

Operating costs for the second quarter, net of the ARS 855 million provision already mentioned, increased by 44.3%, mainly due to a tariff revision that started in the second quarter of 2012 and increased activity in construction, repair and maintenance contracting; to a lesser extent, material procurement and heavier payroll expenses also contributed. However, it should be noted that operating costs have recently shown some stabilization, resulting in similar levels to recent quarters. In turn, increased amortization has been recorded (ARS 513 million) as a result of increased investment activity and higher royalties (ARS 316 million), mainly for crude oil on account of a higher Argentine peso-denominated price at wellhead.

Operating income for Q2 2013 from upstream related companies (controlled and related), including mainly YPF Holdings, YPF International and YPF Servicios Petroleros, were ARS -30 million compared to ARS -151 million for Q2 2012.

CAPEX

Investments in upstream were ARS 5,514 million in Q2 2013, a 126.6% increase compared to Q2 2012.

As for development activities, investments made in the Neuquina basin, especially in the Loma La Lata, (conventional and unconventional), Chihuido Sierra Negra and Catriel are worth mentioning. On the other hand, in the Golfo San Jorge basin, investments have continued in the Manantiales Behr and El Trébol areas in order to increase the recovery factor of such areas. In turn, special attention should be placed on the activities carried out in the province of Santa Cruz, primarily in Los Perales, Cañadón de la Escondida and Las Heras areas, as well as the progress made in activities carried out in the Mendoza Norte block in the province of Mendoza.

As for exploration activities in the Neuquina basin during Q2 2013, investments have been made mainly in the areas of Chihuido de la Sierra Negra, El Manzano, Llancanelo R y Puesto Cortadera; In turn, noteworthy investments were made in Cerro Piedra- Cerro Guadal Norte belonging to Golfo de San Jorge.

 

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2.2 DOWNSTREAM

 

2Q

2012

    1Q
2013
    2Q
2013
    Var.%
2013/2012
   

(Unaudited Figures)

   Jan-Jun
2012
    Jan-Jun
2013
    Var.%
2013/2012
 
  862        1,210        1,210        40.4  

Operating income

(MARS)

     1,925        2,420        25.7
  15,906        18,264        20,721        30.3  

Revenues

(MARS)

     30,647        38,985        27.2
  3,872        3,889        3,819        -1.4  

Sales of refined products in domestic market

(Km3)

     7,492        7,708        2.9
  405        450        265        -34.6  

Exportation of refined products 

(Km3)

     778        715        -8.1
  199        179        195        -1.9  

Sales of petrochemical products in domestic market (*)

(Ktn)

     422        374        -11.2
  53        70        86        62.0  

Exportation of petrochemical products (*)

(Ktn)

     130        156        20.1
  289        288        243        -15.9  

Crude oil processed

(Kboed)

     277        266        -4.0
  90     90     76    

Refinery utilization 

(%)

     87     83     -4.0
  929        596        925        -0.5  

Capital Expenditures (**)

(MARS)

     1,350        1,521        12.7
  235        286        313        33.3  

Depreciation

(MARS)

     457        599        31.1
  676        694        740        9.4  

Average domestic market gasoline price

(USD/m3)

     653        716        9.6
  769        756        802        4.3  

Average domestic market diesel price

(USD/m3)

     746        780        4.5

 

(*) Fertilizer sales not included.
(**) Purchase of Metrogas fixed assets for ARS 3,137 million not included.

Operating income in downstream for Q2 2013 was ARS 1,210 million, a 40.4% increase compared to Q2 2012.

As aforementioned, activities in the second quarter were affected by unprecedented storms impacting the La Plata refinery. This event not only caused physical damage to certain assets of the company but also impacted on operating margins relating to Downstream activities. Significant efforts have been made in the current period to satisfy our demand as well as to recover within our initial estimated timeline in order to fulfill certain obligations undertaken with respect to the processing capacity of topping C unit, which is fully active as of the issuance of this report.

Higher income this quarter was favorably impacted by stronger net sales that were 30.3% higher compared to Q2 2012. Such increase is primarily due to a higher average price in terms of Argentine pesos for gasoline (+29.1%) and diesel (+22.9%), which accounts for a positive result of ARS 2,225 million, as well as increased volumes marketed of such products compared to Q2 2012, with a 14.6% increase in the

 

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case of gasoline (ARS 510 million) and 4.4% increase in the case of diesel (ARS 497 million). Additionally, it is important to mention the revenues achieved due to stronger exported volumes of flour and seed oil (ARS 641 million). These increases offset the impact of the drop in sales of fuel oil in the quarter (ARS -360 million), mainly due to crippled processing capacity at our La Plata refinery, as already mentioned.

Sales of petrochemical products in the domestic market were ARS 114 million higher compared to Q2 2012; decreased volumes of methanol marketed were partially offset by increases in the price of methanol. This decrease in methanol sales income was offset by increased volumes and better prices of aromatics and alcohols. As for exports of petrochemical products, bigger volumes of methanol, alcohols and solvents were reported, posting a positive effect on sales revenues of approximately ARS 127 million.

As for operating costs (+29.6%), special attention should be given to the increase in imported volumes of fuel (gasoline, diesel and JP1) aiming at satisfying demand, at higher price in terms of Argentine pesos (slightly lower in terms of dollars) compared to same period in 2012, the import of these products having an overall negative effect of ARS 1,133 million. Also fuel purchases in the domestic market rose, mainly biofuels (FAME and bioethanol) resulting in a ARS 460 million increase. In turn, there have been higher repair and maintenance rates as well as higher rates relating to crude oil transport and port facilities use.

The volume of crude oil processed during the quarter was 243 Kbped, a 15.9% decrease compared to Q2 2012. This decrease was almost entirely due to the refining capacity constraints affecting La Plata refinery as a consequence of the incident already described; special attention should be placed on the fact that refining capacity at the other two complexes belonging to the company operated at 98% and 99% of their capacity, respectively, during the second quarter of 2013.

The operating income of Downstream controlled companies for Q2 2013, including mainly OPESSA, ELERAN, YPF Inversora Energética and YPF Brazil were ARS 48 million, compared to ARS 51 million in Q2 2012. The acquisition of GASA, Metrogas’s controlling company, during the second quarter of 2013 deserves special attention, although the consolidation of this company does not imply significant additional revenues or costs (see section 6 of this report for further details).

CAPEX

Investment in the Downstream business for Q2 2013 was ARS 925 million, standing at similar levels to the same period in 2012. Special attention should be placed on the progress of the group of multi-annual projects intended to increase gasoline and diesel production capacity, as well as the quality of such products: basically, the implementation of a new coke unit at the La Plata refinery, the completed activities related to the Continuous Catalytic Reformer at our chemical complex in Ensenada and the fuel hydrogenation units at Luján de Cuyo. These works at industrial complexes are complemented by improvement in our logistics, storage and dispatching facilities corresponding to those products.

 

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2.3 CORPORATE

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

Net costs for the second quarter of 2013 were ARS 435 million, a ARS 15 million decrease compared to Q2 2012. Results from this segment were positively impacted by better results posted by the controlled company A-Evangelista S.A. as well as the impact of corporate cost reallocation against business activities.

2.4 RELATED COMPANIES

Results from related companies for Q2 2013 posted an ARS 144 million increase compared to Q2 2012. Main results contributing to this increase come from posting the impact of GASA acquisition (i.e. accumulated results as of that date) and a lower negative result from Mega.

3. LIQUIDITY AND SOURCES OF CAPITAL

Compared to March 31, 2013, YPF (not including the recent consolidation of GASA / Metrogas), increased its financial debt from ARS 18,538 million to ARS 23,130 million, the main reason being the bond issuances during the quarter. Cash and cash equivalents increased by ARS 642 million by the end of the second quarter to reach ARS 4,957 million. Average cost of the Argentine peso-denominated debt was 18.52%, while average cost of the dollar denominated debt was 5.20% by the end of the second quarter of 2013.

At the end of Q2 2013, GASA / Metrogas registered cash and cash equivalents for ARS 183 and financial debt for ARS 943.

The bond issuances of YPF from March 31, 2013 to date is described below:

 

Notes

   Amount    Interest Rate   Maturity  

Series XVI (2T 2013)

   300 MARS    19%     12 months  

Series XVII (2T 2013)

   2,250 MARS    BADLAR+225bps     84 months  

Series XVIII (2T 2013)

   61 MUSD    0.1%     24 months  

Series XIX (2T 2013)

   89 MUSD    1.29%     48 months  

Series XX (2T 2013)

   1,265 MARS    BADLAR+225bps     84 months  

Series XXI (3T 2013)

   100 MARS    19%     12 months  

Series XXII (3T 2013)

   91.5 MUSD    3.5%     84 months  

 

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4. RECURRENT RESULTS ESTIMATE

In order to reflect the business evolution net of non recurring and significant events taking place during Q2 2013, the category ‘recurring results’ does not include the impact of the ARS 855 million provision on assets relating to claims arising from certain gas export and transportation contracts with Brazil cancelled in 2009, in respect of which partial award issued by the Arbitral Tribunal of the International Chamber Commerce against YPF, which the company will continue to appeal.

 

(Unaudited Figures)

   2Q
2013
 

Operating Income (MARS)

     1,363   

Significant and non-recurring events of the quarter (MARS)

     855   

Recurring operating Income (MARS)

     2,218   

Net Income (MARS)(**)

     535   

Significant and non-recurring events of the quarter net of income tax (MARS)

     556   

Recurring net Income (MARS)

     1,091   

EBITDA (MARS)

     4,910   

Significant and non-recurring events of the quarter (MARS)

     855   

Recurring EBITDA (MARS)

     5,765   

Comprehensive Income (MARS)

     2,355   

Significant and non-recurring events of the quarter net of income tax (MARS)

     556   

Recurring Comprehensive Income (MARS)

     2,911   

 

(**) Attributable to controlling shareholder.

On May 24, 2013, YPF was notified of the partial award granted by a majority in the ICC Arbitration “YPF c/AESU and TGM” whereby YPF was deemed responsible for the termination in 2009 of natural gas export and transportation contracts signed with AES Uruguaiana Emprendimientos S.A. (“AESU”) and Transportadora de Gas del Mercosur S.A. (“TGM”). Such award only decides on the responsibility of the parties, leaving the determination of the damages that could exist subject to new arbitration proceedings before the same Tribunal. Moreover, the Tribunal rejected the admissibility of “deliver or pay” claims asserted by Companhía do Gas do Estado do Río Grande do Sul (“Sulgás”) and AESU for the years 2007 and 2008 for a value of U.S.$28 million and for the year 2006 for U.S.$ 2.4 million. On May 31, 2013, YPF filed with the Arbitration Tribunal a writ of Nullity, in addition to making several presentations in order to safeguard its rights. Despite having brought the action above, considering the information available to date, the estimated time remaining until the end of the proceedings, the outcomes of the additional evidence presented in the continuation of the dispute and the provisions of the partial award, YPF has accrued its best estimate with respect to the amount of the claims.

 

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5. LA PLATA REFINERY INCIDENT UPDATE

On April 2, 2013 our facilities in the La Plata refinery were hit by a severe and unprecedented storm, which caused a fire and consequently affected the Coke A and Topping C units in the refinery. These incidents temporarily affected the crude processing capacity of the refinery, which had to be stopped entirely. Seven days after the event, the processing capacity was restored to about 100 kbbl/d through the commissioning of two distillation units (Topping IV and Topping D). By end of May, the Topping C unit resumed operations thus working at a level of 150 kbbl/d. This event not only caused physical damage to certain assets of the company but also impacted on operating margins relating to Downstream activities. Also, the new project Coke A is expected to start operating in 2015, which will replace the old unit, not active since the incident described above. Furthermore, as regards such incident, YPF is in the process of asserting its claim against the contracted insurance company since the company was properly insured against material damage and business interruption.

 

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6. GASA ACQUISITION

On May 3, 2013, YPF through its controlled company YPF Inversora Energética S.A. acquired Gas Argentino S.A. (“GASA”), Metrogas’s controlling company, by means of the purchase of shares representing 54.67% of GASA’s outstanding equity. Before such acquisition, the company, through its participation in YPF Inversora, had a 45.33% stake in GASA.

Metrogas holds a license for gas distribution in the City of Buenos Aires and the southern metropolitan area in Buenos Aires province.

GASA owns 70% of the outstanding equity of Metrogas by owning all class “A” shares of Metrogas (which represent 51% of Metrogas’s equity), plus 19% of the class “B” shares of Metrogas.

Metrogas renders distribution services to round 2.2 million clients within the serviced area (the City of Buenos Aires and 11 municipalities in the southern metropolitan area).

The price of such transaction (acquisition of shares representing 54.67% of GASA’s outstanding equity) was USD 9.7 million.

GASA’s assets and liabilities at fair values (values at 100% stake) reported in its financial statements are detailed below as of the acquisition date.

 

Cash and equivalents (MARS)

     143   

Trade receivables (MARS)

     318   

Other receivables and advances (MARS)

     23   

Fixed assets (MARS)

     1,788   

Provisions (MARS)

     104   

Loans (MARS)

     879   

Accounts payable (MARS)

     461   

Salaries and social security (MARS)

     102   

Deferred income tax liabilities (MARS)

     328   

Income tax liability (MARS)

     12   

Additionally, third parties’ stake in controlled companies amounted ARS 178 million at the date of acquisition, and correspond to the 30% stake in Metrogas’s equity.

Prior to the acquisition, the value of the stake in GASA amounted zero. As a consequence of the acquisition, the fair value of such participation at the date of acquisition generated a gain of approximately ARS 136 million, which has been registered under “Income on investments in companies”.

 

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7. SHALE OIL DEVELOPMENT AGREEMENT

On July 16, 2013, the Company and subsidiaries of Chevron Corporation have signed an Agreement for the joint exploitation of unconventional hydrocarbons in the province of Neuquén. The Agreement contemplates, subject to certain conditions, an expenditure of up to 1,240 million dollars by Chevron for a first phase of work to develop 20 km2 (4,942 acres) of the 395 km2 (97,607 acres) corresponding to the area dedicated to the project, located in the aforementioned province and which includes the Loma La Lata Norte and Loma Campana areas. This initial pilot project contemplates the drilling of more than 100 wells.

Together with what has already been invested by YPF in the aforementioned area, this new input will result in a total investment of 1,500 million dollars in the pilot project, where 15 drilling rigs are already currently operating and more than 10 thousand barrels of oil equivalent per day are being extracted.

After the signing of the Agreement and once certain conditions precedent are satisfied, Chevron will make the initial expenditure of 300 million dollars (which will have the benefit of a guarantee by YPF for the following ninety days until the implementation of all associated documentation for the rest of the Chevron financing, including the contribution of 50% of the project rights by YPF).

In a second stage, after the finalization of the pilot project, both companies expect to continue with the development of the entire area, sharing the investments 50% each.

Likewise, the Agreement contemplates, in a non-binding manner, the subsequent definition of the terms and conditions for the joint exploration of unconventional hydrocarbons in the provinces of Neuquén and Mendoza.

 

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8. TABLES AND NOTES

Results Second Quarter 2013

 

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LOGO   Consolidated Results Q2 2013

 

 

 

 

8.1 CONSOLIDATED STATEMENT OF INCOME

YPF SOCIEDAD ANONIMA AND CONTROLLED COMPANIES

(Unaudited figures in millions of Argentine pesos)

 

Apr-Jun

2012

    Jan-Mar
2013
    Apr-Jun
2013
    Var.%
2013/2012
         Jan-Jun
2012
    Jan-Jun
2013
    Var.%
2013/2012
 
  16,084        18,634        21,941        36.4   Revenues      30,934        40,575        31.2
  (12,112     (13,938     (16,573     36.8   Costs of sales      (22,526     (30,511     35.4

 

 

   

 

 

   

 

 

   

 

 

      

 

 

   

 

 

   

 

 

 
  3,972        4,696        5,368        35.1   Gross profit      8,408        10,064        19.7

 

 

   

 

 

   

 

 

   

 

 

      

 

 

   

 

 

   

 

 

 
  (1,432     (1,481     (2,088     45.8   Selling expenses      (2,660     (3,569     34.2
  (529     (549     (686     29.6   Administration expenses      (1,008     (1,235     22.5
  (174     (76     (170     -2.3   Exploration expenses      (288     (246     -14.7
  33        (57     (1,061     -3316.3   Other expenses      (83     (1,118     1246.4

 

 

   

 

 

   

 

 

   

 

 

      

 

 

   

 

 

   

 

 

 
  1,870        2,533        1,363        -27.1   Operating income      4,369        3,896        -10.8

 

 

   

 

 

   

 

 

   

 

 

      

 

 

   

 

 

   

 

 

 
  (11     (0     133        1312.6   Income on investments in companies      (8     133        1765.1
  59        195        231        292.3   Financial income (expenses), net      (96     426        543.8
  (673     (844     (1,159     72.2   Income tax      (1,581     (2,003     26.7
  (412     (626     (42     -89.7   Diferred income tax      (557     (668     20.0

 

 

   

 

 

   

 

 

   

 

 

      

 

 

   

 

 

   

 

 

 
  —          —          (9     Net income for non-controlling interest      —          (9  

 

 

   

 

 

   

 

 

   

 

 

      

 

 

   

 

 

   

 

 

 
  833        1,258        535        -35.8   Net income for the period (**)      2,127        1,793        -15.7

 

 

   

 

 

   

 

 

   

 

 

      

 

 

   

 

 

   

 

 

 
  2.12        3.20        1.36        -35.8   Earnings per share, basic and diluted      5.41        4.56        -15.7

 

 

   

 

 

   

 

 

   

 

 

      

 

 

   

 

 

   

 

 

 
  1,004        1,385        1,829        82.2   Other comprehensive Income      1,672        3,214        92.2

 

 

   

 

 

   

 

 

   

 

 

      

 

 

   

 

 

   

 

 

 
  1,837        2,643        2,355        28.2   Total comprehensive income for the period      3,799        4,998        31.6

 

 

   

 

 

   

 

 

   

 

 

      

 

 

   

 

 

   

 

 

 
  4,118        5,365        4,910        19.2   EBITDA (*)      8,565        10,275        20.0 %

 

 

   

 

 

   

 

 

   

 

 

      

 

 

   

 

 

   

 

 

 

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

 

(*) EBITDA = Net Income + net interest + income tax + deferred income tax + depreciation of fixed assets
(**) Attributable to controlling shareholder.

 

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LOGO   Consolidated Results Q2 2013        

 

 

 

 

8.2 CONSOLIDATED BALANCE SHEET

YPF SOCIEDAD ANONIMA AND CONTROLLED COMPANIES

(Unaudited figures in millions of Argentine pesos)

 

     12/31/2012      06/30/2013  

Noncurrent Assets

     

Intangible assets

     1,492         1,797   

Fixed assets

     56,971         69,251   

Investments in companies

     1,914         1,906   

Deferred income tax assets

     48         77   

Other receivables and advances

     1,161         1,396   

Trade receivables

     15         26   
  

 

 

    

 

 

 

Total Non-current assets

     61,601         74,453   
  

 

 

    

 

 

 

Current Assets

     

Inventories

     6,922         8,336   

Other receivables and advances

     2,635         3,579   

Trade receivables

     4,044         6,984   

Cash and equivalents

     4,747         5,140   
  

 

 

    

 

 

 

Total current assets

     18,348         24,039   
  

 

 

    

 

 

 

Total assets

     79,949         98,492   
  

 

 

    

 

 

 

Shareholders’ Equity

     

Shareholders’ contributions

     10,674         10,698   

Reserves and unnapropiated retained earnings

     20,586         25,593   

Noncontrolling interest

     —           169   
  

 

 

    

 

 

 

Total Shareholders’ Equity

     31,260         36,460   
  

 

 

    

 

 

 

Noncurrent Liabilities

     

Provisions

     10,663         12,810   

Deferred income tax liabilities

     4,685         5,709   

Other taxes payable

     101         102   

Salaries and social security

     48         7   

Loans

     12,100         18,845   

Accounts payable

     162         171   
  

 

 

    

 

 

 

Total Noncurrent Liabilities

     27,759         37,644   
  

 

 

    

 

 

 

Current Liabilities

     

Provisions

     820         852   

Income tax liability

     541         780   

Other taxes payable

     920         1,230   

Salaries and social security

     789         739   

Loans

     5,004         5,228   

Accounts payable

     12,856         15,559   
  

 

 

    

 

 

 

Total Current Liabilities

     20,930         24,388   
  

 

 

    

 

 

 

Total Liabilities

     48,689         62,032   
  

 

 

    

 

 

 

Total Liabilities and Shareholders’ Equity

     79,949         98,492   
  

 

 

    

 

 

 

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

 

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8.3 CONSOLIDATED STATEMENT OF CASH FLOWS

YPF SOCIEDAD ANONIMA AND CONTROLLED COMPANIES

(Unaudited figures in millions of Argentine pesos)

 

Apr-Jun
2012

    Jan-Mar
2013
    Apr-Jun
2013
         Jan-Jun
2012
    Jan-Jun
2013
 
     

Cash Flows from operating activities

    
  833        1,258        526     

Net income

     2,127        1,784   
  11        0        (133  

Income from investments in companies

     8        (133
  1,925        2,168        2,534     

Depreciation of fixed assets

     3,715        4,701   
  34        41        52     

Amortization of intangible assets

     65        93   
  311        425        666     

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

     520        1,091   
  224        416        1,311     

Net increase in provisions

     784        1,727   
  —          —          —       

Increase in fixed assets provisions

     —          —     
  (23     (1,277     (2,060  

Changes in assets and liabilities

     401        (3,337
  130        —          121     

Dividends from investments in companies

     130        121   
  474        739        237     

Net charge of income tax payment

     1,327        976   

 

 

   

 

 

   

 

 

      

 

 

   

 

 

 
  3,919        3,770        3,253     

Net cash flows provided by operating activities

     9,077        7,023   

 

 

   

 

 

   

 

 

      

 

 

   

 

 

 
     

Cash flows used in investing activities Payments for investments:

    
  (3,490     (4,744     (5,993  

Acquisitions of fixed assets and Intangible assets

     (7,308     (10,737
  —          —          (36  

Adquisition of noncurrent investments

       (36

 

 

   

 

 

   

 

 

      

 

 

   

 

 

 
  (3,490     (4,744     (6,029  

Net cash flows used in investing activities

     (7,308     (10,773

 

 

   

 

 

   

 

 

      

 

 

   

 

 

 
     

Cash flows (used in) provided by financing activities

    
  (8,059     (1,956     (1,625  

Payment of loans

     (15,688     (3,581
  (199     (531     (570  

Payment of interests

     (384     (1,101
  7,379        3,010        5,617     

Proceeds from loans

     13,630        8,627   
  —          —          —       

Payments of dividends

     —          —     

 

 

   

 

 

   

 

 

      

 

 

   

 

 

 
  (879     523        3,422     

Net cash flows (used in) provided by financing activities

     (2,442     3,945   

 

 

   

 

 

   

 

 

      

 

 

   

 

 

 
  8        19        36     

Effect of changes in exchange rates on cash and equivalents

     21        55   

 

 

   

 

 

   

 

 

      

 

 

   

 

 

 
  (442     (432     682     

Increase (Decrease) in Cash and Equivalents

     (652     250   

 

 

   

 

 

   

 

 

      

 

 

   

 

 

 
  902        4,747        4,315     

Cash and equivalents at the beginning of year

     1,112        4,747   
      143     

Cash at the beginning of year for the incorporation of Gasa

     —          143   
  460        4,315        5,140     

Cash and equivalents at the end of year

     460        5,140   

 

 

   

 

 

   

 

 

      

 

 

   

 

 

 
  (442     (432     682     

Increase (Decrease) in Cash and Equivalents

     (652     250   

 

 

   

 

 

   

 

 

      

 

 

   

 

 

 
     

COMPONENTS OF CASH AND EQUIVALENT AT THE END OF THE PERIOD

    
  302        718        443     

Cash

     302        443   
  158        3,597        4,697     

Other Financial Assets

     158        4,697   

 

 

   

 

 

   

 

 

      

 

 

   

 

 

 
  460        4,315        5,140     

TOTAL CASH AND EQUIVALENTS AT THE END OF THE PERIOD

     460        5,140   

 

 

   

 

 

   

 

 

      

 

 

   

 

 

 

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

 

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8.4 MAIN PHYSICAL MAGNITUDES (unaudited figures)

 

      Unit    Q1      Q2 *      2012
Q3 *
     Q4      Cum. 2012      2013
Q1
     Q2 *      Cum. 2013  

Upstream

                          

Crude oil production

   Kbbl      20,738         20,683         21,095         20,715         83,231         20,365         20,770         41,135   

NGL production

   Kbbl      4,975         3,818         3,722         4,892         17,407         4,918         4,162         9,080   

Gas production

   Mm3      2,964         3,101         3,194         2,962         12,221         2,824         3,001         5,825   

Total production

   Kbpe      44,352         44,005         44,903         44,239         177,499         43,045         43,806         86,851   

Downstream

                          

Sales of petroleum products

                          

Domestic market

                          

Gasoline

   Km3      1,029         925         1,053         1,126         4,133         1,159         1,060         2,219   

Diesel

   Km3      1,910         1,971         2,075         2,073         8,029         1,946         2,057         4,004   

Jet fuel and kerosene

   Km3      109         107         112         116         444         108         111         219   

Fuel Oil

   Km3      8         229         332         193         762         129         100         228   

LPG

   Km3      196         266         252         158         872         168         220         388   

Others**

   Km3      369         374         391         371         1,505         379         270         649   

Total domestic market

   Km3      3,621         3,872         4,215         4,037         15,745         3,889         3,819         7,708   

Export market

                          

Petrochemical naphta

   Km3      37         109         7         32         185         0         0         0   

Jet fuel and kerosene

   Km3      139         125         130         131         525         131         121         252   

LPG

   Km3      8         17         28         117         170         123         36         159   

Bunker (Diesel and Fuel Oil)

   Km3      175         142         160         162         639         186         98         284   

Others**

   Km3      14         12         19         8         53         10         10         20   

Total export market

   Km3      373         405         344         450         1,572         450         265         715   

Total sales of petroleum products

   Km3      3,994         4,277         4,559         4,487         17,317         4,339         4,084         8,423   

Sales of petrochemical products

                          

Domestic market

                          

Fertilizers

   Ktn      18         56         61         70         205         24         27         51   

Methanol

   Ktn      80         77         63         48         268         49         57         106   

Others

   Ktn      143         122         126         151         542         130         138         268   

Total domestic market

   Ktn      241         255         250         269         1,015         203         222         425   

Export market

                          

Methanol

   Ktn      0         0         0         41         41         8         22         30   

Others

   Ktn      77         53         78         85         293         62         64         126   

Total export market

   Ktn      77         53         78         126         334         70         86         156   

Total sales of petrochemical products

   Ktn      318         308         328         395         1,349         273         308         581   

Sales of other products

                          

Grain, flours and oils

                          

Domestic market

   Ktn      157         260         165         89         671         39         30         69   

Export market

   Ktn      1         3         41         60         105         87         239         326   

Total Grain, flours and oils

   Ktn      158         263         206         149         776         126         269         395   

 

* Production from Q2 2012 and Q3 2012 has been restated with the results of the annual reserves calculation.
** Includes mainly sales of oil and base lubricants, greases, asphalts, coke coal and others.

 

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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 of YPF and its management, including statements with respect to 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 future crude oil and other prices, 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 and other factors which may be beyond YPF’s control or may be difficult to predict.

YPF’s actual future financial condition, financial ratios, 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 future crude oil and other prices, 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, oil, gas and other price fluctuations, 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 with the 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, 2012 filed with the US 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 otherwise.

The information contained herein has been prepared to assist interested parties in making their own evaluations of YPF.

Investors Relations

E-mail: inversoresypf@ypf.com

Website: www.ypf.com

Macacha Güemes 515

C1106BKK Buenos Aires (Argentina)

Phone: 54 11 5441 1215

Fax: 54 11 5441 2113

 

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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 12, 2013     By:  

/s/ Gabriel E. Abalos

   

Name:

Title:

 

Gabriel E. Abalos

Market Relations Officer

 

3