Form 6-K

6-K 1 d932166d6k.htm FORM 6-K Form 6-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

Report of Foreign Issuer

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

of the Securities Exchange Act of 1934

For the month of May, 2020

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 ☒

LOGO

YPF SOCIEDAD ANONIMA

CONDENSED INTERIM CONSOLIDATED

FINANCIAL STATEMENTS AS OF MARCH 31, 2020

AND COMPARATIVE INFORMATION (UNAUDITED)

English translation of the condensed interim consolidated financial statements originally filed in Spanish with the Argentine Securities Commission (“CNV”). In case of discrepancy, the condensed interim consolidated financial statements filed with the CNV prevail over this translation


YPF SOCIEDAD ANONIMA
CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
AS OF MARCH 31, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

CONTENT


Note	Description	Page
	Glossary of terms	1
	Legal Information	2
	Condensed interim consolidated statements of financial position	3
	Condensed interim consolidated statements of comprehensive income	4
	Condensed interim consolidated statements of changes in shareholders’ equity	5
	Condensed interim consolidated statements of cash flow	7
	Notes to the condensed interim consolidated financial statements:
1	General information, structure and organization of the business of the Group		8
2	Basis of preparation of the condensed interim consolidated financial statements		9
3	Seasonality of operations		12
4	Acquisitions and dispositions		13
5	Financial risk management		13
6	Segment information		14
7	Financial instruments by category		16
8	Intangible assets		16
9	Property, plant and equipment		17
10	Right-of-use assets		20
11	Investments in associates and joint ventures		21
12	Inventories		25
13	Other receivables		25
14	Trade receivables		25
15	Cash and cash equivalents		26
16	Provisions		26
17	Income Tax		27
18	Taxes Payable		28
19	Salaries and social security		28
20	Lease liabilities		29
21	Loans		29
22	Other liabilities		31
23	Accounts payable		31
24	Revenues		31
25	Costs		33
26	Expenses by nature		34
27	Other net operating results		35
28	Net financial results		35
29	Investments in joint operations		35
30	Shareholders’ equity		36
31	Earnings per share		36
32	Issues related to Maxus Entities		37
33	Contingent assets and contingent liabilities		37
34	Contractual commitments		37
35	Main regulations and others		38
36	Balances and transactions with related parties		41
37	Employee benefit plans and similar obligations		43
38	Assets and liabilities in currencies other than the Peso		44
39	Subsequent events		45


YPF SOCIEDAD ANONIMA
CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
AS OF MARCH 31, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

GLOSSARY OF TERMS


Term		Definition
ADR		American Depositary Receipt
ADS		American Depositary Share
AESA		Subsidiary A-Evangelista S.A.
AFIP		Argentine Tax Authority
ASC		Accounting Standards Codification
Associate		Company over which YPF has significant influence as provided for in IAS 28
BNA		Banco de la Nación Argentina
BO		Official Gazette of the Argentine Republic
BONAR		Argentine Treasury Bonds
CAMMESA		Compañía Administradora del Mercado Mayorista Eléctrico S.A.
CDS		Associate Central Dock Sud S.A.
CGU		Cash-Generating Units
CIMSA		Subsidiary Compañía de Inversiones Mineras S.A.
CNDC		Argentine Antitrust Authority
CNV		Argentine Securities Commission
CPI		Consumer Price Index
CSJN		Argentine Supreme Court
CT Barragán		Joint venture CT Barragán S.A.
DOP		Deliver or pay
Eleran		Subsidiary Eleran Inversiones 2011 S.A.U.
ENARGAS		Argentine National Gas Regulatory Authority
FACPCE		Argentine Federation of Professional Councils in Economic Sciences
FASB		Financial Accounting Standards Board
FOB		Free on Board
Group		YPF and its subsidiaries
GPA		Associate Gasoducto del Pacífico (Argentina) S.A.
IAS		International Accounting Standard
IASB		International Accounting Standards Board
IDS		Associate Inversora Dock Sud S.A.
IEASA (former ENARSA)		Integración Energética Argentina S.A. (former Energía Argentina S.A.)
IFRIC		International Financial Reporting Interpretations Committee
IFRS		International Financial Reporting Standard
IIBB		Turnover tax
INDEC		National Institute of Statistics and Census
IWPI		Internal Wholesale Price Index
Joint venture		Company jointly owned by YPF as provided for in IFRS 11
JO		Joint operation
LGS		Argentine General Corporations Law No. 19,550 (T.O. 1984), as amended
LNG		Liquified natural gas
LPG		Liquefied Petroleum Gas
MEGA		Joint Venture Company Mega S.A.
MEGSA		Mercado Electrónico del Gas S.A.
Metroenergía		Subsidiary Metroenergía S.A.
Metrogas		Subsidiary Metrogas S.A.
MINEM		Former Ministry of Energy and Mining (Ministerio de Energía y Minería)
MMBtu		Million British thermal units
NO		Negotiable Obligations
Oiltanking		Associate Oiltanking Ebytem S.A.
Oldelval		Associate Oleoductos del Valle S.A.
OLCLP		Joint Venture Oleoducto Loma Campana – Lago Pellegrini S.A.
OPESSA		Subsidiary Operadora de Estaciones de Servicios S.A.
OTA		Associate Oleoducto Trasandino (Argentina) S.A.
OTC		Associate Oleoducto Trasandino (Chile) S.A.
PEN		National Executive Branch
Peso		Argentine Peso
Profertil		Joint Venture Profertil S.A.
Refinor		Joint Venture Refinería del Norte S.A.
RTI		Integral Tariff Review
SE		Secretariat of Energy
SEC		U.S. Securities and Exchange Commission
SGE		Government Secretariat of Energy
Subsidiary		Company controlled by YPF in accordance with the provisions of IFRS 10
Termap		Associate Terminales Marítimas Patagónicas S.A.
TSEP		Transportation system entry point
UHaF		Under-Secretariat of Hydrocarbons and Fuels
UNG		Unaccounted Natural Gas
US$		U.S. dollar
US$/Bbl		U.S. dollar per barrel
VAT		Value Added Tax
Y-GEN I		Joint venture Y-GEN Eléctrica S.A.U.
Y-GEN II		Joint venture Y-GEN Eléctrica II S.A.U.
YPF Brasil		Subsidiary YPF Brasil Comercio Derivado de Petróleo Ltda.
YPF Chile		Subsidiary YPF Chile S.A.
YPF EE		Joint venture YPF Energía Eléctrica S.A.
YPF Gas		Associate YPF Gas S.A.
YPF Holdings		Subsidiary YPF Holdings, Inc.
YPF International		Subsidiary YPF International S.A.
YPF or the Company		YPF Sociedad Anónima
YPF Ventures		Subsidiary YPF Ventures S.A.U.
YTEC		Subsidiary YPF Tecnología S.A.
WEM		Wholesale Electricity Market


YPF SOCIEDAD ANONIMA
CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
AS OF MARCH 31, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

LEGAL INFORMATION

Legal address

Macacha Güemes 515 – Ciudad Autónoma de Buenos Aires, Argentina

Fiscal year number 44

Beginning on January 1, 2020

Principal business of the Company

The Company’s purpose shall be to perform, on its own, through third parties or in association with third parties, the study, exploration, development and production of oil, natural gas and other minerals and refining, marketing and distribution of oil and petroleum products and direct and indirect petroleum derivatives, including petrochemicals, chemicals, including those derived from hydrocarbons, and non-fossil fuels, biofuels and their components, as well as production of electric power from hydrocarbons, through which it may manufacture, use, purchase, sell, exchange, import or export them. It shall also be the Company’s purpose to render, directly, through a subsidiary or in association with third parties, telecommunications services in all forms and modalities authorized by the legislation in force after applying for the relevant licenses as required by the regulatory framework, as well as the production, industrialization, processing, commercialization, conditioning, transportation and stockpiling of grains and products derived from grains, as well as any other activity complementary to its industrial and commercial business or any activity which may be necessary to attain its objective. In order to fulfill these objectives, the Company may set up, become associated with or have an interest in any public or private entity domiciled in Argentina or abroad, within the limits set forth in the Bylaws.

Filing with the Public Registry

Bylaws filed on February 5, 1991 under No. 404, Book 108, Volume “A”, Sociedades Anónimas, with the Public Registry of Buenos Aires City, in charge of the Argentine Registrar of Companies (Inspección General de Justicia); and Bylaws in substitution of previous Bylaws, filed on June 15, 1993, under No. 5109, Book 113, Volume “A”, Sociedades Anónimas, with the above mentioned Registry.

Duration of the Company

Through June 15, 2093.

Last amendment to the Bylaws

April 29, 2016 registered with the Argentine Registrar of Companies (Inspección General de Justicia) on December 21, 2016 under No. 25,244, Book 82 of Corporations.

Capital structure

393,312,793 shares of common stock, Pesos 10 par value and 1 vote per share.

Subscribed, paid-in and authorized for stock exchange listing (in Pesos)

3,933,127,930

GUILLERMO EMILIO NIELSEN

President

English translation of the financial statements originally filed in Spanish with the Argentine Securities Commission (“CNV”).

In case of discrepancy, the financial statements filed with the CNV prevail over this translation


YPF SOCIEDAD ANONIMA
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
AS OF MARCH 31, 2020 AND DECEMBER 31, 2019 (UNAUDITED)
(Amounts expressed in millions of Pesos)


			March 31,		December 31,
	Notes		2020		2019
ASSETS
Noncurrent Assets
Intangible assets		8		39,329		37,179
Property, plant and equipment		9		1,135,507		1,069,011
Right-of-use assets		10		62,220		61,391
Investments in associates and joint ventures		11		74,205		67,590
Deferred income tax assets, net		17		1,839		1,583
Other receivables		13		12,765		11,789
Trade receivables		14		11,334		15,325

Total noncurrent assets				1,337,199		1,263,868

Current Assets
Assets held for disposal		34		1,823		—
Inventories		12		97,839		80,479
Contract assets		24		722		203
Other receivables		13		38,615		36,192
Trade receivables		14		110,191		118,077
Investment in financial assets		7		5,456		8,370
Cash and cash equivalents		15		69,132		66,100

Total current assets				323,778		309,421

TOTAL ASSETS				1,660,977		1,573,289

SHAREHOLDERS’ EQUITY
Shareholders’ contributions				10,716		10,572
Reserves, other comprehensive income and retained earnings				581,037		531,977

Shareholders’ equity attributable to shareholders of the parent company				591,753		542,549

Non-controlling interest				6,115		5,550

TOTAL SHAREHOLDERS’ EQUITY				597,868		548,099

LIABILITIES
Noncurrent Liabilities
Provisions		16		156,348		144,768
Deferred income tax liabilities, net		17		96,637		97,231
Contract liabilities		24		—		294
Income tax liability		17		3,152		3,387
Taxes payable		18		937		1,428
Lease liabilities		20		41,505		40,391
Loans		21		386,315		419,651
Other liabilities		22		695		703
Accounts payable		23		2,358		2,465

Total noncurrent liabilities				687,947		710,318

Current Liabilities
Provisions		16		5,742		5,460
Contract liabilities		24		7,669		7,404
Income tax liability		17		2,042		1,964
Taxes payable		18		12,107		11,437
Salaries and social security		19		8,429		10,204
Lease liabilities		20		22,356		21,389
Loans		21		180,047		107,109
Other liabilities		22		1,376		1,310
Accounts payable		23		135,394		148,595

Total current liabilities				375,162		314,872

TOTAL LIABILITIES				1,063,109		1,025,190

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY				1,660,977		1,573,289

Accompanying notes are an integral part of these condensed interim consolidated financial statements.

GUILLERMO EMILIO NIELSEN

President


YPF SOCIEDAD ANONIMA
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
FOR THE THREE-MONTH PERIOD ENDED MARCH 31, 2020 AND 2019 (UNAUDITED)
(Amounts expressed in millions of Pesos, except per share information, expressed in Pesos)


			For the three-month period ended March 31,
Net income	Notes		2020			2019
Revenues		24		174,670			130,907
Costs		25		(145,914	)		(104,754	)

Gross profit				28,756			26,153

Selling expenses		26		(13,876	)		(9,820	)
Administrative expenses		26		(6,749	)		(4,768	)
Exploration expenses		26		(716	)		(1,521	)
Other net operating results		27		7,383			587

Operating profit				14,798			10,631

Income from equity interests in associates and joint ventures		11		1,420			1,559
Financial income		28		20,806			25,343
Financial loss		28		(30,134	)		(19,997	)
Other financial results		28		(1,293	)		2,677

Net financial results		28		(10,621	)		8,023

Net profit before income tax				5,597			20,213

Income tax		17		754			(28,366	)

Net profit /(loss) for the period				6,351			(8,153	)

Other comprehensive income
Items that may be reclassified subsequently to profit or loss:
Translation differences from subsidiaries, associates and joint ventures				(1,813	)		(1,991	)
Result from net monetary position in subsidiaries, associates and joint ventures⁽¹⁾				2,194			2,341
Items that may not be reclassified subsequently to profit or loss:
Translation differences from YPF				42,893			55,987

Other comprehensive income for the period				43,274			56,337

Total comprehensive income for the period				49,625			48,184

Net profit / (loss) for the period attributable to:
Shareholders of the parent company				6,212			(8,185	)
Non-controlling interest				139			32
Other comprehensive income for the period attributable to:
Shareholders of the parent company				42,848			55,862
Non-controlling interest				426			475
Total comprehensive income / (loss) for the period attributable to:
Shareholders of the parent company				49,060			47,677
Non-controlling interest				565			507
Earnings per share attributable to shareholders of the parent company:
Basic and diluted		31		15.83			(20.86	)

(1)	Result associated to subsidiaries, associates and joint ventures with the Peso as functional currency. See accounting policy in Note 2.b.1 to the annual consolidated financial statements.

Accompanying notes are an integral part of these condensed interim consolidated financial statements

GUILLERMO EMILIO NIELSEN

President


YPF SOCIEDAD ANONIMA
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
FOR THE THREE-MONTH PERIOD ENDED MARCH 31, 2020 AND 2019 (UNAUDITED)
(Amounts expressed in millions of Pesos)


	For the three-month period ended March 31, 2020
	Shareholders’ contributions
	Subscribed capital		Adjustment to contributions		Treasury shares		Adjustment to treasury shares		Share-based benefit plans			Acquisition cost of treasury shares		Share trading premium			Issuance premiums		Total
Balance at the beginning of the fiscal year		3,924		6,085		9		16		117			177		(396	)		640		10,572
Accrual of share-based benefit plans⁽³⁾		—		—		—		—		147			—		—			—		147
Settlement of share-based benefit plans⁽²⁾		—		—		—		—		(12	)		12		(3	)		—		(3	)
Other comprehensive income		—		—		—		—		—			—		—			—		—
Net income		—		—		—		—		—			—		—			—		—

Balance at the end of the period		3,924		6,085		9		16		252			189		(399	)		640		10,716


	Reserves														Equity attributable to
	Legal		Future dividends		Investments		Purchase of treasury shares		Other comprehensive income			Retained earnings			Shareholders of the parent company			Non- controlling interest		Total shareholders’ equity
Balance at the beginning of the fiscal year		2,007		2,500		44,255		500		516,786			(34,071	)		542,549			5,550		548,099
Accrual of share-based benefit plans⁽³⁾		—		—		—		—		—			—			147			—		147
Settlement of share-based benefit plans⁽²⁾		—		—		—		—		—			—			(3	)		—		(3	)
Other comprehensive income		—		—		—		—		42,848			—			42,848			426		43,274
Net income		—		—		—		—		—			6,212			6,212			139		6,351

Balance at the end of the period		2,007		2,500		44,255		500		559,634	⁽¹⁾		(27,859	)		591,753			6,115		597,868

(1)

Includes 571,038 corresponding to the effect of the translation of the financial statements of YPF and, (31,504) corresponding to the effect of the translation of the financial statements of investments in subsidiaries, associates and joint ventures with functional currencies other than the U.S. dollar and 20,100 corresponding to the recognition of the result for the net monetary position of subsidiaries, associates and joint ventures with the Peso as functional currency, as detailed in Note 2.b.1. to the annual consolidated financial statements.

(2)	Net of employees’ income tax withholdings related to the share-based benefit plans.

(3)	See Note 37.

GUILLERMO EMILIO NIELSEN

President


YPF SOCIEDAD ANONIMA
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
FOR THE THREE-MONTH PERIOD ENDED MARCH 31, 2020 AND 2019 (UNAUDITED) (Cont.)
(Amounts expressed in millions of Pesos)


	For the three-month period ended March 31, 2019
	Shareholders’ contributions
	Subscribed capital		Adjustment to contributions		Treasury shares			Adjustment to treasury shares			Share-based benefit plans			Acquisition cost of treasury shares		Share trading premium			Issuance premiums		Total
Balance at the beginning of the fiscal year		3,923		6,084		10			17			115			11		(282	)		640		10,518
Accrual of share-based benefit plans⁽³⁾		—		—		—			—			103			—		—			—		103
Settlement of share-based benefit plans⁽²⁾		1		1		(1	)		(1	)		(53	)		68		(16	)		—		(1	)
Other comprehensive income		—		—		—			—			—			—		—			—		—
Net loss		—		—		—			—			—			—		—			—		—

Balance at the end of the period		3,924		6,085		9			16			165			79		(298	)		640		10,620


	Reserves														Equity attributable to
	Legal		Future dividends		Investments		Purchase of treasury shares		Other comprehensive income			Retained earnings			Shareholders of the parent company			Non- controlling interest		Total shareholders’ equity
Balance at the beginning of the fiscal year		2,007		—		11,020		220		297,120			38,315			359,200			3,157		362,357
Accrual of share-based benefit plans⁽³⁾		—		—		—		—		—			—			103			—		103
Settlement of share-based benefit plans⁽²⁾		—		—		—		—		—			—			(1	)		—		(1	)
Other comprehensive income		—		—		—		—		55,862			—			55,862			475		56,337
Net loss		—		—		—		—		—			(8,185	)		(8,185	)		32		(8,153	)

Balance at the end of the period		2,007		—		11,020		220		352,982	⁽¹⁾		30,130			406,979			3,664		410,643

(1)

Includes 363,707 corresponding to the effect of the translation of the financial statements of YPF and, (23,671) corresponding to the effect of the translation of the financial statements of investments in subsidiaries, associates and joint ventures with functional currencies other than the U.S. dollar and 12,946 corresponding to the recognition of the result for the net monetary position of subsidiaries, associates and joint ventures with the Peso as functional currency, as detailed in Note 2.b.1. to the annual consolidated financial statements.

(2)	Net of employees’ income tax withholdings related to the share-based benefit plans.

(3)	See Note 37.

Accompanying notes are an integral part of these condensed interim consolidated financial statements.

GUILLERMO EMILIO NIELSEN

President


YPF SOCIEDAD ANONIMA
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOW
FOR THE THREE-MONTH PERIOD ENDED MARCH 31, 2020 AND 2019 (UNAUDITED)
(Amounts expressed in millions of Pesos)


	For the three-month period ended March 31,
	2020			2019
Operating activities:
Net profit / (loss)		6,351			(8,153	)
Adjustments to reconcile net (loss) / profit to cash flows provided by operating activities:
Income from equity interest in associates and joint ventures		(1,420	)		(1,559	)
Depreciation of property, plant and equipment		43,636			28,048
Depreciation of right-of-use assets		4,752			2,020
Amortization of intangible assets		669			483
Retirement of property, plant and equipment and intangible assets and consumption of materials		4,737			4,297
Charge on income tax		(754	)		28,366
Net increase in provisions		3,862			3,213
Exchange differences, interest and other		9,840			(8,432	)
Share-based benefit plan		147			103
Accrued insurance		(458	)		—
Result from assignment of interest in areas		(6,356	)		—
Changes in assets and liabilities:
Trade receivables		15,390			(1,382	)
Other receivables		(3,995	)		(3,378	)
Inventories		(10,952	)		(4,198	)
Accounts payable		(3,406	)		5,525
Taxes payables		365			1,945
Salaries and social security		(1,775	)		(423	)
Other liabilities		173			232
Decrease in provisions included in liabilities due to payment/use		(1,351	)		(862	)
Contract assets		(517	)		(118	)
Contract liabilities		86			(2,832	)
Dividends received		130			50
Proceeds from collection of business interruption insurance		247			758
Income tax payments		(446	)		(1,063	)

Net cash flows from operating activities⁽¹⁾⁽²⁾		58,955			42,640

Investing activities:⁽³⁾
Acquisition of property, plant and equipment and intangible assets		(48,540	)		(30,530	)
Proceeds from sales of financial assets		—			957
Proceeds from assignment of interest in areas		6,356			—

Net cash flows used in investing activities		(42,184	)		(29,573	)

Financing activities:⁽³⁾
Payments of loans		(20,964	)		(9,534	)
Payments of interests		(16,043	)		(8,625	)
Proceeds from loans		25,221			13,081
Payments of leases		(5,936	)		(2,555	)
Payment of interest in relation to income tax		(264	)		—

Net cash flows used in financing activities		(17,986	)		(7,633	)

Translation differences of cash and cash equivalents		4,247			5,137

Net increase in cash and cash equivalents		3,032			10,571

Cash and cash equivalents at the beginning of the fiscal year		66,100			46,028
Cash and cash equivalents at the end of period		69,132			56,599

Net increase in cash and cash equivalents		3,032			10,571

(1)	Does not include exchange differences generated by cash and cash equivalents, which are disclosed separately in this statement.

(2)	Includes 1,963 and 1,183 for the three-month period ended March 31, 2020 and 2019, respectively, for payment of short-term leases and payments of the variable charge of leases related to the underlying asset return/use.

(3)	The main investing and financing transactions that have not affected cash and cash equivalents correspond to:


	For the three-month period ended March 31,
	2020		2019
Unpaid acquisitions of property, plant and equipment		12,146		11,303
Additions of right-of-use assets		2,228		2,575
Capitalization of amortization of right-of-use assets		881		292
Capitalization of financial accretion for lease liabilities		217		23

Accompanying notes are an integral part of these condensed interim consolidated financial statements.

GUILLERMO EMILIO NIELSEN

President


YPF SOCIEDAD ANONIMA
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
AS OF MARCH 31, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)
(Amounts expressed in millions of Pesos, except for shares and per share amounts expressed in Pesos, or as otherwise indicated)

1.	GENERAL INFORMATION, STRUCTURE AND ORGANIZATION OF THE BUSINESS OF THE GROUP

General information

YPF Sociedad Anónima is a stock corporation (sociedad anónima) incorporated under the laws of the Argentine Republic, with a registered office at Macacha Güemes 515, in the City of Buenos Aires.

YPF and its subsidiaries form the leading energy group in Argentina, which operates a fully integrated oil and gas chain with leading market positions across the domestic Upstream and Downstream segments.

Structure and organization of the economic Group

The following chart shows the organizational structure, including the main companies of the Group, as of March 31, 2020:

LOGO

(1)	Held directly and indirectly.

(2)	See Note 3 to the annual consolidated financial statements.

(3)	See Note 34.h to the annual consolidated financial statements.

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

1.	GENERAL INFORMATION, STRUCTURE AND ORGANIZATION OF THE BUSINESS OF THE GROUP (Cont.)

Organization of the business

As of March 31, 2020, the Group carries out its operations in accordance with the following structure:

•

Upstream;

•

Gas and Power;

•

Downstream;

•

Central administration and others, which covers the remaining activities not included in the previous categories.

Activities covered by each business segment are detailed in Note 6.

Almost all operations, properties and clients are located in Argentina. However, the Group also holds participating interests in exploratory areas in Bolivia and production areas in Chile. The Group also sells lubricants and derivatives in Brazil and Chile.

2.	BASIS OF PREPARATION OF THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

2.a) Basis of preparation

The condensed interim consolidated financial statements of YPF for the three-month period ended March 31, 2020 are presented in accordance with IAS 34 “Interim Financial Reporting”. These condensed interim consolidated financial statements should be read in conjunction with the annual consolidated financial statements of the Group as of December 31, 2019 prepared in accordance with IFRS issued by the IASB and the interpretations issued by the IFRIC.

Moreover, some additional information required by the LGS and/or CNV’s regulations have been included.

These condensed interim consolidated financial statements were approved by the Board of Directors’ meeting and authorized to be issued on May 11, 2020.

These condensed interim consolidated financial statements corresponding to the three-month period ended on March 31, 2020 are unaudited. The Company’s Management believes they have included all necessary adjustments to reasonably present the results of each period on a basis consistent with the audited annual consolidated financial statements. Profit for the three-month period ended on March 31, 2020 does not necessarily reflect the proportion of the Group’s full-year profit.

2.b) Significant Accounting Policies

The most significant accounting policies are described in Note 2.b to the annual consolidated financial statements.

The accounting policies adopted in the preparation of these condensed interim consolidated financial statements are consistent with those used in the preparation of the annual consolidated financial statements, except for the valuation policy for income tax detailed in Note 17.

Functional and presentation currency

As mentioned in Note 2.b.1. to the annual consolidated financial statements, YPF has defined the U.S. dollar as its functional currency. Additionally, according to CNV Resolution No. 562, YPF must present its financial statements in Pesos.

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

2.	BASIS OF PREPARATION OF THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (Cont.)

Effects of the translation of investments in subsidiaries, associates and joint ventures with a functional currency corresponding to a hyperinflationary economy

The results and financial position of subsidiaries with the Peso as functional currency were translated into U.S dollars by the following procedures: all amounts (i.e., assets, liabilities, stockholders’ equity items, expenditures and revenues) were translated at the exchange rate effective at the closing date of the financial statements, except for comparative amounts, which were presented as current amounts in the financial statements of the previous fiscal year (i.e., these amounts were not adjusted to reflect subsequent variations in price levels or exchange rates). Thus, the effect of the restatement of comparative amounts was recognized in other comprehensive income.

These criteria were also implemented by the Group for its investments in associates and joint ventures.

Adoption of new standards and interpretations effective as of January 1, 2020

The Group has adopted all new and revised standards and interpretations, issued by the IASB, relevant to its operations which are of mandatory and effective application as of March 31, 2020, as specified in Note 2.b.26 to the annual consolidated financial statements.

Standards and interpretations issued by the IASB whose implementation is not mandatory as of the closing of these consolidated interim financial statements and, therefore, have not been adopted by the Group

•

Amendments issued as from January 1, 2020

In January 2020, the IASB issued amendments to IAS 1 in relation to the classification of liabilities into current and non-current, which are retroactively applicable for fiscal years beginning on January 1, 2022, included, and allow for their earlier application.

The amendments clarify that liabilities classification as current or non-current:

•

Must be based on existing rights at the end of the reporting period to defer settlement by at least twelve months and make explicit that only rights in place “at the end of the reporting period” should affect the classification of a liability.

•

Is unaffected by expectations about whether an entity will exercise its right to defer settlement of a liability.

It also clarifies that settlement refers to the transfer to the counterparty of cash, equity instruments, other assets or services.

The Company does not expect these amendments to have a significant impact on the Company’s financial statements, though is currently evaluating the impact.

2.c) Accounting Estimates and Judgments

The preparation of financial statements at a certain date requires Management to make estimates and assessments affecting the amount of assets and liabilities recorded, contingent assets and liabilities disclosed at such date, as well as income and expenses recorded during the period. Actual future results might differ from the estimates and assessments made as of the date of preparation of these condensed interim consolidated financial statements.

In preparing these condensed interim consolidated financial statements, significant estimates and judgments were made by Management in applying the Group’s accounting policies and the main sources of uncertainty were consistent with those applied by the Group in the preparation of the annual consolidated financial statements, which are disclosed in Notes 2.b and 2.c to the annual consolidated financial statements, about accounting estimates and judgments.

Besides, the Company’s Management has considered the COVID-19 impact and the current economic context based on the preparation of these condensed interim consolidated financial statements and still considers appropriate to adopt the going-concern accounting principle for their presentation and valuation.

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

2.	BASIS OF PREPARATION OF THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (Cont.)

Considerations concerning COVID-19 (coronavirus) and the current economic environment

Since the beginning of 2020, a virus outbreak has taken place, causing potentially deadly respiratory infections (COVID-19) and adversely affecting the demand for refined products in geographical areas where the most relevant measures were implemented to control the virus’ spread. Besides, during March, recent worldwide developments and the uncertainty in the supply of crude oil have caused an abnormally high volatility in this commodity.

On March 12, 2020, Decree No. 260/2020 was published in the BO, which extended the public health emergency established by Law No. 27,541 due to the pandemic, for a period of one year.

Also, since March 20, 2020, the Argentine Government adopted certain measures to protect the general population and fight the disease. These measures imposed a general restriction on economic activity, with some exceptions, which included, among other actions, price controls, the prohibition of dismissals without cause as well as for reasons of lack or reduction of activity and force majeure for a period of 60 days, general restriction to the free circulation during certain periods in Argentina, general travel restrictions, visas suspension, nation-wide lockdowns, closing of public and private institutions, sporting events suspension, restrictions to the operation of museums and tourist attractions and extension of holidays. These measures include several exceptions applicable to people engaged in activities and services declared as essential in the emergency. Among these exceptions, minimum work shifts are contemplated ensuring the operation and maintenance of oil and gas fields, oil and gas treatment and/or refining plants, transportation and distribution of electric energy, liquid fuels, oil and gas, fuel service stations and electric power generators.

Since the implementation of these measures and until the date of issuance of these condensed interim consolidated financial statements, the demand for gasoline, diesel and jet fuel has declined approximately 70%, 40% and 90% respectively, as a daily average compared to the daily demand in the days prior to the measures, which affects the comprehensive results and cash flows of the Group. Consequently, the processing levels at the Group’s refineries were also adversely affected. The Group cannot assure the extent or duration of such conditions.

As mentioned above, the valuation of certain assets and liabilities is subject to a higher level of uncertainty, including those described below:

•

Review of impairment indicators of property, plant and equipment

In general terms, the Group does not consider termporarily low (or high) prices as an impairment indicator (or reversal of an impairment charge). The assumptions of future prices used by the Company’s Management tend to be stable because it does not consider short-term increases or decreases in prices to be indicative of long-term levels, but, however, they are subject to changes. Therefore, given the significant changes in crude oil prices, especially in the months of March and April 2020, the Group has reviewed the price of crude oil assumptions used in the impairment tests conducted as of December 31, 2019 in the Crude Oil GCU. In this sense, Management has estimated a price decline in the short term, reflecting the current domestic market conditions for 2020, which will subsequently reach in 2021 the previous estimations. Long-term price assumptions have not changed.

Besides, the Group has reviewed the discount rate used in the impairment tests conducted as of December 31, 2019. Considering that the Group uses various criteria and parameters that are applicable to longer term assets, their update has not significantly affected the discount rate applied by the Group.

The sensitivity analysis on the value in use of the Crude Oil CGU did not generate charges for impairment for the three-month period ended on March 31, 2020.

•

Impairment of financial assets measured at amortized cost

The Group applies the simplified approach to expected credit losses allowed under IFRS 9 for the trade receivables.

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

2.	BASIS OF PREPARATION OF THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (Cont.)

Considering the maximum exposure to financial credit risk based on counterparties’ concentration, receivables with the National Government, its direct agencies and companies with government participation account for approximately 35% (50,595), while the Group’s remaining debtors are diversified.

The current economic situation and future credit risk outlooks have been contemplated to review and update estimates of provisions. Even though they have not had a significant impact, the total economic impact of COVID-19 on expected credit losses is subject to significant uncertainty since the prospective information that is currently available is limited. The Group will continue thoroughly reviewing the assumptions used in such estimates.

•

Income tax

Under IAS 34, income tax expense is recognised in each interim period based on the best estimate of the effective income tax rate expected at the end of the fiscal year.

Considering the current economic context and future prospects, the Group has adjusted the projections used to estimate the effective tax rate. The Group has also reviewed the recoverability of tax losses carry-forwards, not having recorded impairment charges for the three-month period ended on March 31, 2020.

•

Provisions assumptions for lawsuits and contingencies

The Group does not expect the current economic situation will significantly change the present value of the disbursements deemed to be required to settle the obligations related to existing provisions as of the date of issuance of these condensed interim consolidated financial statements. However, the Group will continue reviewing these assumptions.

•

Other accounting estimates and judgments

The rest of the accounting estimates and judgments disclosed in the annual consolidated financial statements are still applicable. No new significant accounting estimates or judgments have been identified.

As of the date of these condensed interim consolidated financial statements, due to the uncertainties inherent to the scale and duration of these events, it is not reasonably possible to estimate the final negative impact this pandemic will have on the world’s economy and its financial markets, on Argentina’s economy, and consequently, on the other comprehensive income, cash flows and financial position of the Group.

2.d) Comparative information

Amounts and other information corresponding to the year ended on December 31, 2019 and to the three-month period ended on March 31, 2019 are an integral part of these condensed interim consolidated financial statements and are intended to be read only in relation to these financial statements.

3.	SEASONALITY OF OPERATIONS

Historically, the Group’s results have been subject to seasonal fluctuations throughout the year, particularly as a result of the increase in natural gas sales during the winter. After the devaluation of the Peso in 2002, and as a consequence of the natural gas price freeze imposed by the Argentine government until the last years, the use of natural gas has been diversified, generating an increase in demand throughout the entire year. However, recently, an excess of supply with respect to the domestic demand took place at specific times of the year. Consequently, the Group may be subject to seasonal fluctuations in its sales volumes and prices, which might adversely affect the level of production and sales of natural gas.

Besides, the current economic environment has been significantly affected by COVID-19, which will have a negative impact on the results of the Group’s operations, and that will be sensitive to the development of the pandemic and the measures adopted by the Argentine Government. See Note 2.c.

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

4.	ACQUISITIONS AND DISPOSITIONS

In the three-month period ended on March 31, 2020, there were no significant acquisitions and dispositions other than the assignment of the Bandurria Sur block mentioned in Note 33.b to the annual consolidated financial statements. Additionally, see Note 34.

5.	FINANCIAL RISK MANAGEMENT

The Group’s activities expose it to a variety of financial risks: market risk (including foreign currency risk, interest rate risk, and price risks), credit risk and liquidity risk. Within the Group, risk management functions are conducted in relation to financial risks associated to financial instruments to which the Group is exposed during a certain period or as of a specific date. The administration and risk management policies applied by the Group are described in Note 4 to the annual consolidated financial statements.

Moreover, given the current economic situation caused by the COVID-19, the Group has evaluated its exposure to the following risks:

•

Market risk management

The market risk to which the Group is exposed consists of the possibility that the valuation of the Group’s financial assets and liabilities, as well as certain expected cash flows may be adversely affected by changes in interest rates, exchange rates and other price variables.

The Group has carried out a sensitivity analysis of possible changes in interest rates and exchange rates, and concluded it was not significantly affected by such changes.

On the other hand, the Group was affected by the investments in financial instruments’ own price risk (decrease in public securities and mutual funds prices), which are valued at fair value with changes in results. See Note 7.

•

Liquidity risk management

Liquidity risk is associated with the possibility of a mismatch between the need of funds to meet short, medium or long-term obligations.

The Group assessed its projected liquidity based on several stress scenarios and concluded that it is not facing any difficulties to meet its future commitments.

Besides, several loans of the Group contain Covenants, which include financial commitments associated with the leverage ratio, the debt service coverage ratio, and events of default triggered by materially adverse judgments, among others. The Group monitors compliance with the Covenants on a quarterly basis. As of March 31, 2020, the Group has complied with all assumed clauses of commitments. However, should the current conditions continue (see Note 2.c), the Group’s capacity to take further debt might be limited if it exceeds the limits established in any of the financial ratios mentioned above. Additionally, given the current global macroeconomic context, and Argentina’s situation in particular the Group’s funding capacity might be affected.

•

Credit risk management

Credit risk is defined as the possibility of a third party not complying with its contractual obligations, generating Group losses. The main considerations are described in Note 2.c.

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

6.	SEGMENT INFORMATION

The different segments in which the Group is organized take into consideration the different activities from which the Group obtains income and incurs expenses. The aforementioned organizational structure is based on the way in which the highest decision-making authority analyzes the main financial and operating magnitudes for making decisions about resource allocation and performance assessment also considering the Group’s business strategy.

•

Upstream

The Upstream segment carries out all activities relating to the exploration, development and production of oil and natural gas.

Revenue is generated from (i) the sale of produced crude oil to the Downstream segment and, marginally, from its sale to third parties; (ii) the sale of produced gas to the Gas and Power segment.

•

Gas and Power

The Gas and Power segment generates its revenue from the development of activities relating to: (i) the natural gas and LNG commercialization to third parties and the Downstream segment, (ii) the commercial and technical operation of LNG regasification terminals in Escobar, by hiring one regasification vessel, and (iii) the natural gas distribution.

In addition to the proceeds derived from the sale of natural gas to third parties and the intersegment, which is then recognized as a “purchase” to the Upstream segment, and including Stimulus Plan for Natural Gas production in force (see Note 34.g to the annual consolidated financial statements), Gas and Power accrues a fee in its favor with the Upstream segment to carry out such commercialization.

•

Downstream

The Downstream segment develops activities relating to: (i) crude oil refining and petrochemical production, (ii) commercialization of refined and petrochemical products obtained from such processes, (iii) logistics related to the transportation of crude oil and gas to refineries and the transportation and distribution of refined and petrochemical products to be marketed in the different sales channels.

It obtains its income from the marketing mentioned in item (ii) above, which is developed through the Retail, Industry, Aviation, Agro, LPG, Chemicals and Lubricants and Specialties businesses.

It incurs in all expenses relating to the aforementioned activities, including the purchase of crude oil from the Upstream segment and third parties and the natural gas to be consumed in the refinery and petrochemical industrial complexes from the Gas and Power segment.

•

Central Administration and Others

It covers other activities, not falling into the aforementioned categories, mainly including corporate administrative expenses and assets and construction activities.

Sales between business segments were made at internal transfer prices established by the Group, which generally seek to approximate market prices.

Operating profit and assets for each segment have been determined after consolidation adjustments.

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

6.	SEGMENT INFORMATION (Cont.)


	Upstream			Gas and Power			Downstream		Central Administration and Others			Consolidation Adjustments⁽¹⁾			Total
For the three-month period ended March 31, 2020
Revenues from sales		824			27,598			143,876		4,204			(1,832	)		174,670
Revenues from intersegment sales		80,005			1,679			857		6,675			(89,216	)		—

Revenues		80,829			29,277			144,733		10,879			(91,048	)		174,670

Operating profit / (loss)		664			(1,100	)		4,133		(3,452	)		14,553			14,798
Income from equity interests in associates and joint ventures		—			937			483		—			—			1,420
Depreciation of property, plant and equipment		35,195	⁽²⁾		405			6,999		1,037			—			43,636
Acquisition of property, plant and equipment		29,274			847			5,201		1,424			—			36,746
Assets		783,821	⁽³⁾		206,774			530,437		131,802			8,143			1,660,977

For the three-month period ended March 31, 2019
Revenues from sales		321			20,043			108,365		3,408			(1,230	)		130,907
Revenues from intersegment sales		55,224			1,745			572		4,816			(62,357	)		—

Revenues		55,545			21,788			108,937		8,224			(63,587	)		130,907

Operating profit / (loss)		(1,663	)		(234	)		13,283		(2,056	)		1,301			10,631
Income from equity interests in associates and joint ventures		—			1,442			117		—			—			1,559
Depreciation of property, plant and equipment		23,125	⁽²⁾		269			4,027		627			—			28,048
Acquisition of property, plant and equipment		24,804			1,177			3,568		828			—			30,377

As of December 31, 2019
Assets		742,850			199,357			508,026		129,331			(6,275	)		1,573,289

(1)	Corresponds to the elimination among segments of the YPF Group.

(2)	Includes depreciation of charges for impairment of property, plant and equipment.

(3)	Includes assets held for disposal of Bandurria Sur area. See Note 34.

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

7.	FINANCIAL INSTRUMENTS BY CATEGORY

Fair value measurements

Fair value measurements are described in Note 6 to the annual consolidated financial statements.

The tables below show the Group’s financial assets measured at fair value as of March 31, 2020 and December 31, 2019, and their allocation to their fair value levels:


	As of March 31, 2020
Financial Assets	Level 1		Level 2		Level 3		Total
Investments in financial assets:
- Public securities		5,456		—		—		5,456

		5,456		—		—		5,456

Cash and cash equivalents:
- Mutual funds		2,730		—		—		2,730

		2,730		—		—		2,730

		8,186		—		—		8,186


	As of December 31, 2019
Financial Assets	Level 1		Level 2		Level 3		Total
Investments in financial assets:
- Public securities		8,370		—		—		8,370

		8,370		—		—		8,370

Cash and cash equivalents:
- Mutual funds		7,038		—		—		7,038

		7,038		—		—		7,038

		15,408		—		—		15,408

The Group has no financial liabilities measured at fair value.

Fair value estimates

From December 31, 2019 until March 31, 2020, there have been significant changes mainly in macroeconomic circumstances (mainly an increase in country risk and a drop in the prices of government securities, among others) affecting the financial instruments measured at fair value by the Group.

Furthermore, during the three-month period ended March 31, 2020, there were no transfers between the different hierarchies used to determine the fair value of the Group’s financial instruments.

Fair value of financial assets and financial liabilities measured at amortized cost

The estimated fair value of loans, considering unadjusted listed prices (Level 1) for NO and interest rates offered to the Group (Level 3) for the other financial loans remaining, amounted to 370,602 and 476,750 as of March 31, 2020 and December 31, 2019, respectively.

The fair value of other receivables, trade receivables, cash and cash equivalents, other liabilities and accounts payable do not differ significantly from their book value.

8.	INTANGIBLE ASSETS


	March 31, 2020			December 31, 2019
Net book value of intangible assets		39,789			37,608
Provision for impairment of intangible assets		(460	)		(429	)

		39,329			37,179

English translation of the financial statements originally filed in Spanish with the Argentine Securities Commission (“CNV”). In case of discrepancy, the financial statements filed with the CNV prevail over this translation

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

8.	INTANGIBLE ASSETS (Cont.)

The evolution of the Group’s intangible assets for the three-month period ended March 31, 2020 and the year ended December 31, 2019 is as follows:


	Service concessions			Exploration rights			Other intangibles			Total
Cost		31,702			6,907			14,722			53,331
Accumulated amortization		20,110			—			12,819			32,929

Balance as of December 31, 2018		11,592			6,907			1,903			20,402

Cost
Increases		1,271			4,171	⁽²⁾		705			6,147
Translation effect		18,969			5,680			7,862			32,511
Adjustment for inflation⁽¹⁾		—			—			833			833
Decreases and reclassifications		(6	)		(103	)		181			72
Accumulated amortization
Increases		1,848			—			526			2,374
Translation effect		12,332			—			7,475			19,807
Adjustment for inflation⁽¹⁾		—			—			199			199
Decreases and reclassifications		—			—			(23	)		(23	)
Cost		51,936			16,655			24,303			92,894
Accumulated amortization		34,290			—			20,996			55,286

Balance as of December 31, 2019		17,646			16,655			3,307			37,608

Cost
Increases		192			—			68			260
Translation effect		3,986			1,266			1,641			6,893
Adjustment for inflation⁽¹⁾		—			—			227			227
Decreases and reclassifications		—			(264	)		—			(264	)
Accumulated amortization
Increases		512			—			157			669
Translation effect		2,651			—			1,564			4,215
Adjustment for inflation⁽¹⁾		—			—			51			51
Decreases and reclassifications		—			—			—			—
Cost		56,114			17,657			26,239			100,010
Accumulated amortization		37,453			—			22,768			60,221

Balance as of March 31, 2020		18,661			17,657			3,471			39,789

(1)	Corresponds to adjustment for inflation of opening balances of intangible assets in subsidiaries with the Peso as functional currency which was charged to other comprehensive income.

(2)	See Note 3 to the annual consolidated statements.

9.	PROPERTY, PLANT AND EQUIPMENT


	March 31, 2020			December 31, 2019
Net book value of property, plant and equipment		1,222,151			1,156,950
Provision for obsolescence of materials and equipment		(7,115	)		(6,610	)
Provision for impairment of property, plant and equipment		(79,529	)		(81,329	)

		1,135,507			1,069,011

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

9.	PROPERTY, PLANT AND EQUIPMENT (Cont.)

Changes in Group’s property, plant and equipment for the three-month period ended March 31, 2020 and the year ended December 31, 2019 are as follows:


	Land and buildings		Mining property, wells and related equipment			Refinery equipment and petrochemical plants			Transportation equipment			Materials and equipment in warehouse			Drilling and work in progress			Exploratory drilling in progress			Furniture, fixtures and installations			Selling equipment			Infrastructure for natural gas distribution			Other property			Total
Cost		48,047		1,604,868			280,451			16,162			34,990			124,381			7,972			24,717			40,998			24,168			31,637			2,238,391
Accumulated depreciation		22,114		1,231,930			152,295			10,579			—			—			—			20,707			25,697			12,508			22,458			1,498,288

Balance as of December 31, 2018		25,933		372,938			128,156			5,583			34,990			124,381			7,972			4,010			15,301			11,660			9,179			740,103

Cost
Increases		46		1,980	⁽³⁾		4,676			83			43,089			114,878			6,532			106			—			865			589			172,844	⁽⁴⁾
Translation effect		24,838		967,212			171,788			8,723			21,044			70,818			5,014			14,289			25,116			—			13,581			1,322,423
Adjustment for inflation⁽⁶⁾		3,382		—			—			716			920			1,326			—			828			—			13,010			4,793			24,975
Decreases and reclassifications		880		114,493			15,715			1,358			(37,620	)		(116,818	)		(8,132	)		1,077			4,021			6,600			(3,894	)		(22,320	)

Accumulated depreciation
Increases		1,260		137,017	⁽³⁾		16,092			1,345			—			—			—			2,536			2,765			989			1,325			163,329
Translation effect		11,444		758,928			93,611			5,917			—			—			—			11,935			15,822			—			9,862			907,519
Adjustment for inflation⁽⁶⁾		1,726		—			—			486			—			—			—			773			—			6,733			3,270			12,988
Decreases and reclassifications		9		(2,287	)		(33	)		(376	)		—			—			—			(834	)		(13	)		3,647			(2,874	)		(2,761	)

Cost		77,193		2,688,553			472,630			27,042			62,423			194,585			11,386			41,017			70,135			44,643			46,706			3,736,313
Accumulated depreciation		36,553		2,125,588			261,965			17,951			—			—			—			35,117			44,271			23,877			34,041			2,579,363

Balance as of December 31, 2019		40,640		562,965	⁽¹⁾		210,665			9,091			62,423			194,585			11,386			5,900			25,864			20,766			12,665			1,156,950

Cost
Increases		1		300			191			6			11,606			24,272			62			33			—			208			67			36,746	⁽⁵⁾
Translation effect		5,149		207,225			36,489			1,900			4,773			11,857			757			3,156			5,947			—			2,848			280,101
Adjustment for inflation⁽⁶⁾		716		—			—			177			91			553			—			104			—			3,482			699			5,822
Decreases and reclassifications		22		24,216			1,493			149			(9,286	)		(23,414	)		(2,682	)		1,917			(14	)		(71	)		43			(7,627	)⁽⁷⁾

Accumulated depreciation
Increases		403		42,698			5,533			374			—			—			—			735			897			278			369			51,287
Translation effect		2,429		164,785			20,330			1,276			—			—			—			2,617			3,434			—			2,084			196,955
Adjustment for inflation⁽⁶⁾		352		—			—			103			—			—			—			95			—			1,862			518			2,930
Decreases and reclassifications		—		(1,259	)		—			(17	)		—			—			—			(4	)		(1	)		(47	)		(3	)		(1,331	)⁽⁷⁾

Cost		83,081		2,920,294			510,803			29,274			69,607			207,853			9,523			46,227			76,068			48,262			50,363			4,051,355
Accumulated depreciation		39,737		2,331,812			287,828			19,687			—			—			—			38,560			48,601			25,970			37,009			2,829,204

Balance as of March 31, 2020		43,344		588,482	⁽¹⁾		222,975			9,587			69,607			207,853			9,523	⁽²⁾		7,667			27,467			22,292			13,354			1,222,151

(1)	Includes 23,073 and 22,343 of mineral property as of March 31, 2020 and December 31, 2019 respectively.

(2)	As of March 31, 2020, there are 17 exploratory wells in progress. During the three-month period ended on such date, 7 wells were transferred to properties with proven reserves in the mining property, wells and related equipment account.

(3)	Includes 1,172 corresponding to hydrocarbon wells abandonment costs and 4,664 of depreciation recovery for the year ended December 31, 2019.

(4)

Includes 2,109 and 1,228 corresponding to short-term leases and the variable charge of leases related to the underlying asset return/use, respectively. Additionally, it includes 2,021 and 311 corresponding to the depreciation capitalization of right-of-use assets (see Note 10) and to capitalization of the financial accretion of the lease liability, respectively.

(5)

Includes 476 and 352 corresponding to short-term leases and the variable charge of leases related to the underlying asset return/use, respectively. Additionally, it includes 881 and 217 corresponding to the depreciation capitalization of right-of-use assets (see Note 10) and to capitalization of the financial accretion of the lease liability, respectively.

(6)	Corresponds to adjustments for inflation of opening balances of property, plant and equipment of subsidiaries with the Peso as functional currency which was charged to other comprehensive income.

(7)	Includes 2,027 and 204 of cost and accumulated depreciation, respectively, corresponding to the reclassification of assets of the 11% interest of Bandurria Sur area as held for disposal. See Note 34.

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

9.	PROPERTY, PLANT AND EQUIPMENT (Cont.)

The Group capitalizes the financial cost as part of the cost of the assets. For the three-month period ended March 31, 2020 and 2019, the rate of capitalization was 10.58% and 10.73%, respectively, and the amount capitalized amounted to 246 and 227, respectively, for the period mentioned above.

Set forth below is the evolution of the provision for obsolescence of materials and equipment for the three-month period ended on March 31, 2020 and for the year ended December 31, 2019:


	Provision for obsolescence of materials and equipment
Balance as of December 31, 2018		3,955
Increase charged to profit / (loss)		410
Decreases charged to profit / (loss)		(22	)
Amounts incurred due to utilization		(48	)
Translation differences		2,315

Balance as of December 31, 2019		6,610

Decreases charged to profit or loss		(1	)
Translation differences		506

Balance as of March 31, 2020		7,115

Set forth below is the evolution of the provision for impairment of property, plant and equipment for the three-month period ended on March 31, 2020 and for the year ended December 31, 2019:


	Provision for impairment of property, plant and equipment
Balance as of December 31, 2018		37,061
Increase charged to profit / (loss)		41,429	⁽¹⁾
Depreciation		(17,435	)⁽²⁾
Translation differences		20,274

Balance as of December 31, 2019		81,329

Depreciation		(7,651	)⁽²⁾
Translation differences		5,851

Balance as of March 31, 2020		79,529

(1)	See Note 2.c to the annual consolidated financial statements.

(2)	Included in “Depreciation of property, plant and equipment” in Note 26.

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

10.

RIGHT-OF-USE ASSETS

The evolution of the Group’s right-of-use assets for the three-month period ended March 31, 2020 and for the fiscal year ended December 31, 2019 are as follows:


	Land and buildings		Exploitation facilities and equipment			Machinery and equipment			Gas stations			Transportation equipment			Total
Balance for initial application of IFRS 16		450		6,732			8,612			3,356			3,909			23,059


Cost
Increases		266		13,129			19,429			163			6,792			39,779
Translation differences		310		4,587			6,189			1,687			2,545			15,318
Adjustment for inflation⁽³⁾		—		—			—			275			—			275
Decreases and reclassifications		—		(1,162	)		(1,264	)		(58	)		(64	)		(2,548	)

Accumulated depreciation
Increases		208		6,051			3,174			667			2,430			12,530	⁽¹⁾
Translation differences		45		1,138			850			117			619			2,769
Decreases and reclassifications		—		(507	)		(283	)		(7	)		(10	)		(807	)

Cost		1,026		23,286			32,966			5,423			13,182			75,883
Accumulated depreciation		253		6,682			3,741			777			3,039			14,492

Balance as of December 31, 2019		773		16,604			29,225			4,646			10,143			61,391


Cost
Increases		—		1,930			168			97			33			2,228
Translation differences		77		1,806			2,526			346			1,021			5,776
Adjustment for inflation⁽³⁾		2		—			—			62			—			64
Decreases and reclassifications		—		(601	)		—			—			—			(601	)

Accumulated depreciation
Increases		73		2,274			1,599			203			1,484			5,633	⁽²⁾
Translation differences		22		624			365			53			309			1,373
Adjustment for inflation⁽³⁾		1		—			—			15			—			16
Decreases and reclassifications		—		(384	)		—			—			—			(384	)

Cost		1,105		26,421			35,660			5,928			14,236			83,350
Accumulated depreciation		349		9,196			5,705			1,048			4,832			21,130

Balance as of March 31, 2020		756		17,225			29,955			4,880			9,404			62,220

(1)

Includes 10,509 that were charged to “Depreciation of right-of-use assets” in the comprehensive statement of income (see Note 25 to the annual consolidated financial statements) and 2,021 that were capitalized in the item “Property, plant and equipment” in the statement of financial position (see Note 9).

(2)	Includes 4,752 that were charged to “Depreciation of right-of-use assets” in the comprehensive statement of income (see Note 26) and 881 that were capitalized in the item “Property, plant and equipment” in the statement of financial position (see Note 9).

(3)	Corresponds to adjustments for inflation of opening balances of right-of-use assets of subsidiaries with the Peso as functional currency which was charged to other comprehensive income.

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

11.

INVESTMENTS IN ASSOCIATES AND JOINT VENTURES

The following table shows the value of the investments in associates and joint ventures at an aggregate level, as of March 31, 2020 and December 31, 2019:


	March 31, 2020			December 31, 2019
Amount of investments in associates		7,170			6,419
Amount of investments in joint ventures		67,047			61,183
Provision for impairment of investments in associates and joint ventures		(12	)		(12	)

		74,205			67,590

The main movements during the three-month period ended March 31, 2020 and for the year ended December 31, 2019 which affected the value of the aforementioned investments, correspond to:


	Investments in associates and joint ventures
Balance as of December 31, 2018		32,686
Acquisitions and contributions		4,826
Income on investments in associates and joint ventures		7,968
Translation differences		20,673
Distributed dividends		(811	)
Adjustment for inflation⁽¹⁾		1,510
Capitalization in joint ventures		738

Balance as of December 31, 2019		67,590

Income on investments in associates and joint ventures		1,420
Translation differences		4,692
Distributed dividends		(130	)
Adjustment for inflation⁽¹⁾		633

Balance as of March 31, 2020		74,205

(1)	Corresponds to the recognition of the result for the net monetary position of associates and joint ventures with the Peso as functional currency, which was charged to other comprehensive income, as detailed in Note 2.b.1 to the annual consolidated financial statements.

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

11.

INVESTMENTS IN ASSOCIATES AND JOINT VENTURES (Cont.)

The following table shows the principal amounts of the results of the investments in associates and joint ventures of the Group, calculated according to the equity method therein, for the three-month period ended March 31, 2020 and 2019. The Group has adjusted, if applicable, the values reported by these companies to adapt them to the accounting criteria used by the Group for the calculation of the equity method value in the aforementioned dates:


	Associates				Joint ventures
	For the three-month period ended March 31,				For the three-month period ended March 31,
	2020		2019		2020		2019
Net income		86		291		1,334		1,268
Other comprehensive income		795		685		4,530		4,515

Comprehensive income for the period		881		976		5,864		5,783

The Group does not have investments in subsidiaries with significant non-controlling interests. Likewise, the Group does not have investments in associates and joint ventures that are significant, with the exception of the investment in YPF EE.

The management information corresponding to YPF EE’s assets and liabilities as of March 31, 2020 and December 31, 2019, as well as the results for the three-month period ended March 31, 2020 and 2019, are detailed below:


	March 31, 2020⁽¹⁾		December 31, 2019⁽¹⁾
Noncurrent assets		110,077		96,219
Current assets		25,261		26,622

Total assets		135,338		122,841

Noncurrent liabilities		65,220		57,799
Current liabilities		19,504		19,503

Total liabilities		84,724		77,302

Total shareholders’ equity		50,614		45,539


	For the three- month period ended March 31,
	2020⁽¹⁾			2019⁽¹⁾
Revenues		4,447			2,685
Costs		(2,018	)		(895	)

Gross profit		2,429			1,790

Operating profit		2,060			1,556
Income from equity interests in associates and joint ventures		82			78
Net financial results		427			(506	)

Net profit before income tax		2,569			1,128

Income tax		(1,079	)		(311	)

Net profit		1,490			817

(1)	On this information, accounting adjustments have been made for the calculation of equity interest and results of YPF EE. The equity and adjusted results do not differ significantly from the YPF EE financial information disclosed here.

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

11.

INVESTMENTS IN ASSOCIATES AND JOINT VENTURES (Cont.)

The following table shows information of the subsidiaries:


					Information of the issuer
	Description of the Securities						Last available financial statements
Name and Issuer	Class	Face Value		Amount	Main Business	Registered Address	Date	Capital stock		Net profit (loss)			Equity			Holding in Capital Stock
Subsidiaries:⁽⁷⁾
YPF International S.A.⁽⁶⁾	Common	Bs.	100	66,897	Investment	La Plata Street 19, Santa Cruz de la Sierra, República de Bolivia	03-31-20		15		—			84			100.00	%
YPF Holdings Inc.⁽⁶⁾	Common	US$	0.01	810,614	Investment and finance	10333 Richmond Avenue I, Suite 1050, TX, U.S.A.	03-31-20		52,172		(2	)		(13,833	)		100.00	%
Operadora de Estaciones de Servicios S.A.	Common	$	1	163,701,747	Commercial management of YPF’s gas stations	Macacha Güemes 515, Buenos Aires, Argentina	03-31-20		164		(172	)		4,454			99.99	%
A-Evangelista S.A.	Common	$	1	307,095,088	Engineering and construction services	Macacha Güemes 515, Buenos Aires, Argentina	03-31-20		307		(861	)		(1,607	)		100.00	%
Metrogas S.A.	Common	$	1	398,419,700	Providing the public service of natural gas distribution	Gregorio Aráoz de Lamadrid 1360, Buenos Aires, Argentina.	03-31-20		569		(160	)		21,866			70.00	%
YPF Chile S.A.⁽⁶⁾	Common	—	—	50,968,649	Lubricants and aviation fuels trading and hydrocarbons research and exploration	Villarica 322; Módulo B1, Qilicura, Santiago	03-31-20		2,939		(168	)		2,188			100.00	%
YPF Tecnología S.A.	Common	$	1	234,291,000	Investigation, development, production and marketing of technologies, knowledge, goods and services	Macacha Güemes 515, Buenos Aires, Argentina	03-31-20		459		55			2,972			51.00	%
Compañía de Inversiones Mineras S.A.	Common	$	1	236,474,420	Exploration, exploitation, processing, management, storage and transport of all types of minerals; assembly, construction and operation of facilities and structures and processing of products related to mining	Macacha Güemes 515, Buenos Aires, Argentina	03-31-20		236		(81	)		(6	)		100.00	%

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

11.

INVESTMENTS IN ASSOCIATES AND JOINT VENTURES (Cont.)

The following table shows the investments in associates and joint ventures:


	03-31-2020																			12-31-2019
							Information of the issuer
	Description of the Securities								Last available financial statements
Name and Issuer	Class	Face Value		Amount	Book value⁽²⁾	Cost⁽¹⁾	Main Business	Registered Address	Date	Capital stock		Net profit (loss)			Equity		Holding in Capital Stock			Book Value⁽²⁾
Joint Ventures⁽⁵⁾:
YPF Energía Eléctrica S.A.⁽⁶⁾	Common	$	1	1,879,916,921	38,734	1,085	Exploration, exploitation, industrialization and marketing of hydrocarbons and generation, transport and marketing of electric energy	Macacha Güemes 515, Buenos Aires, Argentina	03-31-20		3,747		1,490			50,614		75.00	%		35,382
Compañía Mega S.A.⁽⁶⁾	Common	$	1	244,246,140	5,312	—	Separation, fractionation and transportation of natural gas liquids	San Martín 344, P. 10º, Buenos Aires, Argentina	03-31-20		643		(1,009	)		14,018		38.00	%		5,211
Profertil S.A.⁽⁶⁾	Common	$	1	391,291,320	12,043	—	Production and marketing of fertilizers	Alicia Moreau de Justo 740, P. 3, Buenos Aires, Argentina	12-31-19		783		1,401			24,809		50.00	%		10,778
Refinería del Norte S.A.	Common	$	1	45,803,655	1,808	—	Refining	Maipú 1, P. 2º, Buenos Aires, Argentina	12-31-19		92		142			4,157		50.00	%		1,881
Oleoducto Loma Campana-Lago Pellegrini S.A.⁽⁶⁾	Common	$	1	738,139,164	821	738	Construction and exploitation of a pipeline, oil transport and storage, import, export, purchase and sale of raw materials, industrial equipment and machinery	Macacha Güemes 515, Buenos Aires, Argentina	03-31-20		868		(23	)		948		85.00	%		762
CT Barragán S.A.⁽⁶⁾	Common	$	1	4,279,033,952	7,921	4,348	Production and generation of electric energy	Maipú 1, Buenos Aires, Argentina	03-31-20		8,558		1,192			15,865		50.00	%		6,799

					66,639	6,171															60,813

Associates:
Oleoductos del Valle S.A.	Common	$	10	4,072,749	2,062	—	Oil transportation by pipeline	Florida 1, P. 10º, Buenos Aires, Argentina	12-31-19		110		1,707			4,728		37.00	%		1,778
Terminales Marítimas Patagónicas S.A.	Common	$	10	476,034	910	—	Oil storage and shipment	Av. Leandro N. Alem 1180, P. 11º, Buenos Aires, Argentina	12-31-19		14		928			2,489		33.15	%		711
Oiltanking Ebytem S.A.⁽⁶⁾	Common	$	10	351,167	926	—	Hydrocarbon transportation and storage	Terminal Marítima Puerto Rosales – Province of Buenos Aires, Argentina.	03-31-20		12		7			2,664		30.00	%		871
Central Dock Sud S.A.	Common	$	0.01	11,869,095,145	1,528	—	Electric power generation and bulk marketing	Pasaje Ingeniero Butty 220, P.16°, Buenos Aires, Argentina	03-31-20		1,231		239			15,377		10.25	%⁽⁴⁾		1,542
YPF Gas S.A.	Common	$	1	59,821,434	1,101	—	Gas fractionation, bottling, distribution and transport for industrial and/or residential use	Macacha Güemes 515, P.3º, Buenos Aires, Argentina	12-31-19		176		1,414			4,589		33.99	%		965
Other companies:
Other⁽³⁾	—		—	—	1,051	648	—	—	—		—		—			—		—			922

					7,578	648															6,789

					74,217	6,819															67,602

(1)	Corresponds to cost and contributions, net of dividends collected and capital reductions.

(2)	Corresponds to holding in shareholders’ equity plus adjustments to conform to YPF accounting principles.

(3)	Includes Gasoducto del Pacífico (Argentina) S.A., A&C Pipeline Holding Company, Oleoducto Transandino (Chile) S.A., Oleoducto Trasandino (Argentina) S.A., Bizoy S.A., Civeny S.A., Bioceres S.A., Petrofaro S.A. and Sustentator S.A.

(4)	Additionally, the Group has a 22.49% indirect holding in capital stock through YPF EE.

(5)	As stipulated by shareholders’ agreement, joint control is held in this company by shareholders.

(6)	The U.S. dollar has been defined as the functional currency of this company.

(7)	Additionally, consolidates YPF Services USA Corp., YPF Europe B.V., YPF Brasil Comércio Derivado de Petróleo Ltda, Wokler Investment S.A., YPF Colombia S.A.S., Miwen S.A., Eleran Inversiones 2011 S.A.U., Lestery S.A., Energía Andina S.A and YPF Ventures S.A.U.

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

12.

INVENTORIES


	March 31, 2020			December 31, 2019
Refined products		61,374			50,563
Crude oil and natural gas		31,024			24,756
Products in process		2,245			2,259
Raw materials, packaging materials and others		3,196			2,901

		97,839	⁽¹⁾		80,479	⁽¹⁾

(1)	As of March 31, 2020, and December 31, 2019, the cost of inventories does not exceed their net realizable value.

13.

OTHER RECEIVABLES


	March 31, 2020						December 31, 2019
	Noncurrent			Current			Noncurrent			Current
Receivables from services rendered		451			1,397			455			2,706
Tax credit and export rebates		8,026			8,220			6,896			6,076
Loans to third parties and balances with related parties⁽¹⁾		2,178			4,143			2,435			3,288
Collateral deposits		2			662			2			640
Prepaid expenses		708			5,374			603			2,370
Advances and loans to employees		33			584			29			596
Advances to suppliers and custom agents⁽²⁾		—			11,349			—			10,896
Receivables with partners in JO		2,323			5,047			2,248			7,932
Insurance receivables		—			747			—			498
Miscellaneous		39			1,155			45			1,255

		13,760			38,678			12,713			36,257
Provision for other doubtful receivables		(995	)		(63	)		(924	)		(65	)

		12,765			38,615			11,789			36,192

(1)	See Note 36 for information about related parties.

(2)	Includes, among others, advances to customs agents for the payment of taxes and import rights related to the imports of fuels and goods.

14.

TRADE RECEIVABLES


	March 31, 2020					December 31, 2019
	Noncurrent		Current			Noncurrent		Current
Accounts receivable and related parties⁽¹⁾⁽²⁾		11,334		117,814			15,325		124,657
Provision for doubtful trade receivables		—		(7,623	)		—		(6,580	)

		11,334		110,191			15,325		118,077

(1)	See Note 36 for information about related parties.

(2)	See Note 24 for information about credits for contracts included in trade receivables.

Set forth below is the evolution of the provision for doubtful trade receivables for three-month period ended on March 31, 2020 and for the year ended December 31, 2019:


	Provision for doubtful trade receivables
Balance as of December 31, 2018		2,776

Increases charged to expenses		3,891
Decreases charged to income		(707	)
Amounts incurred due to utilization		(112	)
Translation differences		847
Result from net monetary position⁽¹⁾		(103	)
Other movements		(12	)

Balance as of December 31, 2019		6,580

Increases charged to expenses		919
Decreases charged to income		(2	)
Translation differences		130
Result from net monetary position⁽¹⁾		(4	)

Balance as of March 31, 2020		7,623

(1)	Includes adjustment for inflation of opening balances of the provision for doubtful trade receivables in subsidiaries with the Peso as functional currency which was charged to other comprehensive income and the adjustment for inflation of the fiscal year, which was charged to results.

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

15.

CASH AND CASH EQUIVALENTS


	March 31, 2020		December 31, 2019
Cash and banks		6,429		6,983
Short-term investments⁽¹⁾		59,973		52,079
Financial assets at fair value with changes in results⁽²⁾		2,730		7,038

		69,132		66,100

(1)	Includes 4,003 and 10,043 of term deposits and other investments with the BNA as of March 31, 2020 and December 31, 2019, respectively.

(2)	See Note 7.

16.

PROVISIONS

Changes in the Group’s provisions for the three-month period ended March 31, 2020 and for the fiscal year ended December 31, 2019 are as follows:


	Provision for lawsuits and contingencies						Provision for environmental liabilities						Provision for hydrocarbon wells abandonment obligations						Total
	Noncurrent			Current			Noncurrent			Current			Noncurrent			Current			Noncurrent			Current
Balance as of December 31, 2018		21,235			1,123			3,720			1,622			58,433			1,784			83,388			4,529

Increases charged to expenses		18,460	⁽²⁾		9			1,695			—			7,409			—			27,564			9
Decreases charged to income		(2,358	)		(744	)		(63	)		—			(2,950	)		—			(5,371	)		(744	)
Amounts incurred due to payments/utilization		(73	)		(194	)		—			(1,821	)		—			(2,774	)		(73	)		(4,789	)
Net exchange and translation differences		7,405			443			479			106			35,219			1,079			43,103			1,628
Result from net monetary position⁽⁴⁾		(92	)		—			—			—			—			—			(92	)		—
Reclassifications and other movements		(744	)		648			(2,003	)		2,003			(1,004	)⁽¹⁾		2,176	⁽¹⁾		(3,751	)		4,827

Balance as of December 31, 2019		43,833			1,285			3,828			1,910			97,107			2,265			144,768			5,460

Increases charged to expenses		1,455	⁽³⁾		7			436			—			2,417			—			4,308			7
Decreases charged to income		(621	)		(108	)		—			—			—			—			(621	)		(108	)
Amounts incurred due to payments/utilization		(9	)		(8	)		—			(573	)		—			(761	)		(9	)		(1,342	)
Net exchange and translation differences		1,699			91			107			3			7,554			176			9,360			270
Result from net monetary position⁽⁴⁾		(3	)		—			—			—			—			—			(3	)		—
Reclassifications and other movements		(117	)		117			(580	)		580			(758	)		758			(1,455	)		1,455

Balance as of March 31, 2020		46,237			1,384			3,791			1,920			106,320			2,438			156,348			5,742

(1)	Includes 1,172 corresponding to the recalculation of abandonment of hydrocarbon wells cost for the year ended December 31, 2019.

(2)	Includes 10,572 corresponding to the recognition of the dispute relating to the tax deduction of well abandonment costs for periods 2011-2017 plus the accrual of financial interest since March 31, 2019, date on which the Company decided to adhere to the payment facility plan.

(3)	Includes the accrual of financial interest of the dispute relating to the tax deduction of well abandonment costs for periods 2011-2017.

(4)	Includes adjustment for inflation of opening balances of provisions in subsidiaries with the Peso as functional currency which was charged to other comprehensive income and the adjustment for inflation of the period, which was charged to results.

Provisions for lawsuits, claims and environmental liabilities are described in Note 15 to the annual consolidated financial statements. No significant new provisions have been identified over the three-month period ended on March 31, 2020, nor have there been any changes in the evaluation of the affairs prevailing as of December 31, 2019.

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

17.

INCOME TAX

According to IAS 34, income tax expense is recognized in each interim period based on the best estimate of the effective income tax rate expected at the end of the fiscal year. The amounts calculated for income tax expense for the three-month period ended March 31, 2020 may need to be adjusted in the subsequent period in case the projected effective tax rate estimate is modified based on new elements of judgment.

The calculation of the income tax expense accrued for the three-month period ended March 31, 2020 and 2019 is as follows:


	For the three-month period ended March 31,
	2020			2019
Current income tax		(435	)		(479	)
Deferred income tax		1,189			(7,086	)⁽¹⁾

Subtotal		754			(7,565	)

Income tax – Well abandonment		—			(16,239	)⁽²⁾
Special tax – Tax revaluation, Law No. 27,430		—			(4,562	)⁽³⁾

		754			(28,366	)

(1)	Includes (5,175) corresponding to the reversal of tax loss carryforwards related to the dispute relating to cost deduction for wells abandonment.

(2)	Includes (10,610) corresponding to interest related to the dispute relating to cost deduction for wells abandonment determined on the date the Company decided to adhere to the payment facility plan. See Note 15 to the annual consolidated financial statements.

(3)	See Note 34.j to the annual consolidated financial statements.

The reconciliation between the charge to net income for income tax for the three-month period ended March 31, 2020 and 2019 and the one that would result from applying the prevailing tax rate on net income before income tax arising from the condensed interim consolidated statements of comprehensive income for each period is as follows:


	For the three-month period ended March 31,
	2020			2019
Net income before income tax		5,597			20,213
Statutory tax rate		30	%		30	%

Statutory tax rate applied to net income before income tax		(1,679	)		(6,064	)
Effect of the valuation of property, plant and equipment and intangible assets, net		9,221			(9,863	)
Effect of exchange differences and other results associated to the valuation of the currency, net⁽¹⁾		(681	)		11,903
Effect of the valuation of inventories		(6,171	)		(3,285	)
Income on investments in associates and joint ventures		426			468
Effect of tax rate change⁽²⁾		(463	)		3,004
Dispute associated to cost deduction for wells abandonment		—			(5,175	)
Miscellaneous		101			1,447

Income tax		754			(7,565	)

(1)	Includes the effect of tax inflation.

(2)	Corresponds to the remediation of deferred income tax at the current rate. See Notes 2.b.15 and 34.j to the annual consolidated financial statements.

The Group has classified 2,042 as current income tax payable, which mainly include 917 corresponding to the 12 installments related to the payment facility plan (see Note 15 to the annual consolidated financial statements). Also, the Group has classified 3,152 as non-current income tax payable, which mainly include 3,135 corresponding to the 41 installments related to the mentioned plan.

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

17.

INCOME TAX (Cont.)

Breakdown of deferred tax as of March 31, 2020 and December 31, 2019 is as follows:


	March 31, 2020			December 31, 2019
Deferred tax assets
Provisions and other non-deductible liabilities		5,621			5,344
Tax losses carryforward		49,171			52,443
Miscellaneous		1,308			937

Total deferred tax assets		56,100			58,724

Deferred tax liabilities
Property, plant and equipment		(92,514	)		(110,704	)
Adjustment for tax inflation		(48,604	)		(38,177	)
Miscellaneous		(9,780	)		(5,491	)

Total deferred tax liabilities		(150,898	)		(154,372	)

Total Net deferred tax		(94,798	)⁽¹⁾		(95,648	)⁽¹⁾

(1)

Includes (408) and (1,523) as of March 31, 2020 and December 31, 2019, respectively, corresponding to adjustment for inflation of the opening deferred liability of subsidiaries with the Peso as functional currency with effect in other comprehensive income and the adjustment for inflation of the period, which was charged to results.

As of March 31, 2020 and December 31, 2019, there are no significant deferred tax assets which are not recognized.

As of March 31, 2020 and December 31, 2019, the Group has classified as deferred tax assets 1,839 and 1,583, respectively, and as deferred tax liability 96,637 and 97,231, respectively, all of which arise from the net deferred tax balances of each of the separate companies included in these condensed interim consolidated financial statements.

As of March 31, 2020 and December 31, 2019, the causes that generate charges to other comprehensive income, did not create temporary differences for income tax.

18.

TAXES PAYABLE


	March 31, 2020				December 31, 2019
	Non current		Current		Non current		Current
VAT		—		566		—		3,532
Withholdings and perceptions		—		2,502		—		2,070
Royalties		—		2,008		—		1,268
Tax on Fuels		—		3,069		—		635
IIBB		—		297		—		512
Miscellaneous		937		3,665		1,428		3,420

		937		12,107		1,428		11,437

19.

SALARIES AND SOCIAL SECURITY


	March 31, 2020		December 31, 2019
Salaries and social security		3,223		2,976
Bonuses and incentives provision		1,329		3,468
Vacation provision		3,672		3,610
Miscellaneous		205		150

		8,429		10,204

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

20.

LEASE LIABILITIES

As of March 31, 2020, the Group recorded non-current and current lease liabilities in the amount of 41,505 and 22,356, respectively.

The evolution of the Group’s leases liabilities for the three-month period ended March 31, 2020 and for the fiscal year ended December 31, 2019, are as follows:


	Lease liabilities
Balances for initial application of IFRS 16		23,059

Leases increase		39,779
Financial accretion		2,885
Leases decrease		(1,741	)
Payments		(15,208	)
Exchange and translation differences, net		12,999
Result from net monetary position⁽¹⁾		7

Balance as of December 31, 2019		61,780

Increase due to new contracts		2,228
Financial accretion		1,513
Leases decrease		(257	)
Payments		(5,936	)
Exchange and translation differences, net		4,533

Balance as of March 31, 2020		63,861

(1)	Includes adjustment for inflation of opening balances of lease liabilities in subsidiaries with the Peso as functional currency which was charged to other comprehensive income and the adjustment for inflation of the period, which was charged to results.

21.

LOANS


			March 31, 2020				December 31, 2019
	Interest rate ⁽¹⁾	Maturity	Noncurrent		Current		Noncurrent		Current
Pesos:
Negotiable obligations⁽⁴⁾	16.50% - 46.00%	2020-2024		12,273		32,956		8,619		27,481
Loans	41.23% - 65.88%	2020-2024		3,329		3,794		—		3,687
Account overdraft	17.00% - 50.38%	2020		—		1,193		—		2,103

				15,602		37,943		8,619		33,271

Currencies other than the Peso:
Negotiable obligations⁽²⁾⁽³⁾	3.50% - 10.00%	2020-2047		340,502		79,067		375,560		13,279
Export pre-financing⁽⁵⁾	4.39% - 9.75%	2020-2022		9,655		33,888		10,762		33,100
Imports financing	3.62% - 7.91%	2020		—		14,391		—		17,876
Loans	3.09% - 7.75%	2020-2026		20,556		14,758		24,710		9,583

				370,713		142,104		411,032		73,838

				386,315		180,047		419,651		107,109

(1)	Nominal annual interest rate as of March 31, 2020.

(2)	Disclosed net of 62 and 326 corresponding to YPF’s own NO repurchased through open market transactions, as of March 31, 2020 and December 31, 2019, respectively.

(3)	Includes 5,636 and 4,643 as of March 31, 2020 and December 31, 2019, respectively, of nominal value of NO that will be canceled in pesos at the applicable exchange rate in accordance with the terms of the series issued.

(4)	Includes 15,850 as of March 31, 2020 and December 31, 2019, of nominal value of NO that will be canceled in U.S. dollars at the applicable exchange rate according to the conditions of the issued series.

(5)	Includes pre-financing of exports granted by BNA. As of March 31, 2020, it includes 2,543 which accrue an 8.72% weighted average rate. As of December 31, 2019, it includes 4,933, which accrue a 6.89% weighted average rate.

Set forth below is the evolution of the loans for three-month period ended on March 31, 2020 and for the year ended December 31, 2019:


	Loans
Balance as of December 31, 2018		335,078
Proceed from loans		97,351
Payments of loans		(93,456	)
Payments of interest		(41,606	)
Accrued interest⁽¹⁾		44,570
Net exchange differences and translation		185,420
Result from net monetary position⁽²⁾		(597	)

Balance as of December 31, 2019		526,760

Proceed from loans		25,221
Payments of loans		(20,964	)
Payments of interest		(16,043	)
Accrued interest⁽¹⁾		15,267
Net exchange differences and translation		36,125
Result from net monetary position⁽²⁾		(4	)

Balance as of March 31, 2020		566,362

(1)	Includes capitalized financial costs.

(2)	Includes adjustment for inflation of opening balances of loans in subsidiaries with the Peso as functional currency which was charged to other comprehensive income and the adjustment for inflation of the fiscal year, which was charged to results.

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

21.

LOANS (Cont.)

Details regarding the Negotiable Obligations of the Group are as follows:


										March 31, 2020				December 31, 2019
Month	Year	Principal value		Ref.	Class	Interest rate⁽³⁾			Principal Maturity	Noncurrent		Current		Noncurrent		Current
YPF
-	1998	US$	15	(1) (6)	—	Fixed	10.00	%	2028		954		39		886		15
April	2013	$	2.250	(2) (4) (6) (7)	Class XVII	BADLAR plus 2.25%	34.43	%	2020		—		1,190		—		1,217
June	2013	$	1.265	(2) (4) (6)	Class XX	BADLAR plus 2.25%	31.49	%	2020		—		640		—		643
July	2013	US$	92	(2) (5) (6)	Class XXII	Fixed	3.50	%	2020		—		785		—		729
April, February and October	2014/5/6	US$	1.522	(2) (4) (6)	Class XXVIII	Fixed	8.75	%	2024		97,980		4,216		91,010		1,925
March	2014	$	500	(2) (6) (7)	Class XXIX	—	—		—		—		—		—		206
September	2014	$	1.000	(2) (6) (7)	Class XXXIV	BADLAR plus 0.1%	50.25	%	2024		667		171		667		279
February	2015	$	950	(2) (6) (7)	Class XXXVI	—	—		—		—		—		—		1,161
April	2015	$	935	(2) (4) (6)	Class XXXVIII	BADLAR plus 4.75%	46.00	%	2020		—		380		—		349
April	2015	US$	1.500	(2) (6)	Class XXXIX	Fixed	8.50	%	2025		96,554		1,436		89,416		3,230
September	2015	$	1.900	(2) (6) (7)	Class XLI	BADLAR	29.12	%	2020		—		637		—		719
September and December	2015/9	$	5.196	(2) (4) (6)	Class XLII	BADLAR plus 4%	33.12	%	2020		—		5,230		—		5,952
October	2015	$	2.000	(2) (6) (7)	Class XLIII	BADLAR	39.92	%	2023		2,000		354		2,000		183
March and January	2016/20	$	5.455	(2) (4) (6)	Class XLVI	BADLAR plus 6%	36.16	%	2021		—		5,586		1,350		251
March	2016	US$	1.000	(2) (6)	Class XLVII	Fixed	8.50	%	2021		—		64,491		59,790		1,383
April	2016	US$	46	(2) (5) (6)	Class XLVIII	Fixed	8.25	%	2020		—		2,997		—		2,785
April	2016	$	535	(2) (6)	Class XLIX	BADLAR plus 6%	38.85	%	2020		—		576		—		593
July	2016	$	11.248	(2) (6) (8)	Class L	BADLAR plus 4%	44.44	%	2020		—		12,395		—		12,902
May	2017	$	4.602	(2) (6) (8)	Class LII	Fixed	16.50	%	2022		4,602		297		4,602		108
July and December	2017	US$	1.000	(2) (6)	Class LIII	Fixed	6.95	%	2027		65,027		926		60,399		1,890
December	2017	US$	750	(2) (6)	Class LIV	Fixed	7.00	%	2047		47,708		981		44,311		126
June	2019	US$	500	(6) (9)	Class I	Fixed	8.50	%	2029		32,027		705		29,748		17
December	2019	$	1.683	(6) (9)	Class II	BADLAR plus 3.75%	33.65	%	2020		—		1,719		—		1,729
December	2019	$	1.157	(6) (9)	Class III	BADLAR plus 6%	35.90	%	2020		—		1,181		—		1,189
December	2019	US$	19	(5) (6) (9)	Class IV	Fixed	7.00	%	2020		—		1,271		—		1,179
January	2020	$	2.112	(6) (9)	Class V	BADLAR plus 5%	37.49	%	2021		—		2,250		—		—
January and March	2020	$	5.006	(6) (9)	Class VI	BADLAR plus 6%	38.49	%	2021		5,004		350		—		—
January	2020	US$	10	(5) (6) (9)	Class VII	Fixed	5.00	%	2021		—		641		—		—
March	2020	US$	9	(6) (9)	Class VIII	Fixed	5.00	%	2021		—		578		—		—
March	2020	US$	4	(6) (9)	Class IX	Fixed	6.00	%	2021		252		1		—		—

											352,775		112,023		384,179		40,760

(1)	Corresponds to the 1997 M.T.N. Program for US$ 1,000 million.

(2)	Corresponds to the 2008 M.T.N. Program for US$ 10,000 million.

(3)	Nominal annual Interest rate as of March 31, 2020.

(4)	The ANSES and/or the “Fondo Argentino de Hidrocarburos” have participated in the primary subscription of these NO, which may at the discretion of the respective holders, be subsequently traded on the securities market where these negotiable obligations are authorized to be traded.

(5)	The payment currency of these NO is the Peso at the Exchange rate applicable under the terms of the series issued.

(6)	As of the date of issuance of these financial statements, the Group has fully complied with the use of proceeds disclosed in the corresponding pricing supplements.

(7)	NO classified as productive investments computable as such for the purposes of section 35.8.1, paragraph K of the General Regulations applicable to Insurance Activities issued by the Argentine Insurance Supervisory Bureau.

(8)	The payment currency of this issue is the U.S. dollar at the exchange rate applicable in accordance with the conditions of the relevant issued series.

(9)	Corresponds to the Frequent Issuer program. See Note 20 to the annual consolidated financial statements.

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

22.

OTHER LIABILITIES


	March 31, 2020				December 31, 2019
	Noncurrent		Current		Noncurrent		Current
Extension of concessions		544		540		529		593
Liabilities for contractual claims⁽¹⁾		149		60		170		59
Miscellaneous		2		776		4		658

		695		1,376		703		1,310

(1)	See Note 15 to the annual consolidated financial statements.

23.

ACCOUNTS PAYABLE


	March 31, 2020				December 31, 2019
	Noncurrent		Current		Noncurrent		Current
Trade payable and related parties⁽¹⁾		1,648		131,569		1,869		145,942
Guarantee deposits		28		673		21		704
Payables with partners of JO		682		1,550		575		851
Miscellaneous		—		1,602		—		1,098

		2,358		135,394		2,465		148,595

(1)	For more information about related parties, see Note 36.

24.

REVENUES


	For the three-month period ended March 31,
	2020			2019
Sales of goods and services		178,928			132,852
Government incentives⁽¹⁾		2,125			2,260
Turnover tax		(6,383	)		(4,205	)

		174,670			130,907

(1)	See Note 36.

The Group’s transactions and the main revenues are described in Note 6. The Group’s revenues are derived from contracts with customers, except for Government incentives.

•

Breakdown of revenues

•

Type of good or service


	For the three-month period ended March 31, 2020
	Upstream		Downstream		Gas and Power		Corporation and others		Total
Diesel		—		62,140		—		—		62,140
Gasolines		—		41,162		—		—		41,162
Natural Gas⁽¹⁾		—		181		22,541		—		22,722
Crude Oil		—		1,528		—		—		1,528
Jet fuel		—		11,230		—		—		11,230
Lubricants and by-products		—		4,215		—		—		4,215
Liquefied Petroleum Gas		—		4,011		—		—		4,011
Fuel oil		—		2,099		—		—		2,099
Petrochemicals		—		6,038		—		—		6,038
Fertilizers		—		2,078		—		—		2,078
Flours, oils and grains		—		4,116		—		—		4,116
Asphalts		—		653		—		—		653
Goods for resale at gas stations		—		1,261		—		—		1,261
Income from services		—		—		—		851		851
Income from construction contracts		—		—		—		2,283		2,283
Virgin naphtha		—		2,316		—		—		2,316
Petroleum coke		—		1,095		—		—		1,095
LNG Regasification		—		—		1,318		—		1,318
Other goods and services		843		2,372		3,268		1,329		7,812

		843		146,495		27,127		4,463		178,928

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

24.

REVENUES (Cont.)


	For the three-month period ended March 31, 2019
	Upstream		Downstream		Gas and Power		Corporation and others		Total
Diesel		—		44,187		—		—		44,187
Gasolines		—		31,271		—		—		31,271
Natural Gas⁽¹⁾		—		264		17,593		—		17,857
Crude Oil		—		3,073		—		—		3,073
Jet fuel		—		9,559		—		—		9,559
Lubricants and by-products		—		2,713		—		—		2,713
Liquefied Petroleum Gas		—		3,483		—		—		3,483
Fuel oil		—		995		—		—		995
Petrochemicals		—		4,520		—		—		4,520
Fertilizers		—		678		—		—		678
Flours, oils and grains		—		2,537		—		—		2,537
Asphalts		—		1,052		—		—		1,052
Goods for resale at gas stations		—		943		—		—		943
Income from services		—		—		—		852		852
Income from construction contracts		—		—		—		2,334		2,334
Virgin naphtha		—		709		—		—		709
Petroleum coke		—		1,568		—		—		1,568
LNG Regasification		—		—		22		—		22
Other goods and services		328		1,866		1,863		442		4,499

		328		109,418		19,478		3,628		132,852

(1)	Includes 16,528 and 11,914 corresponding to sales of natural gas produced by the Company for the three-month period ended March 31, 2020 and 2019, respectively.

•

Sales Channels


	For the three-month period ended March 31, 2020
	Upstream		Downstream		Gas and Power		Corporation and others		Total
Gas Stations		—		73,729		—		—		73,729
Power Plants		—		—		4,565		—		4,565
Distribution Companies		—		—		4,080		—		4,080
Retail distribution of natural gas		—		—		5,641		—		5,641
Industries, transport and aviation		—		30,612		8,436		—		39,048
Agriculture		—		14,625		—		—		14,625
Petrochemical industry		—		6,624		—		—		6,624
Trading		—		11,028		—		—		11,028
Oil Companies		—		5,901		—		—		5,901
Commercialization of liquefied petroleum gas		—		1,478		—		—		1,478
Other sales channels		843		2,498		4,405		4,463		12,209

		843		146,495		27,127		4,463		178,928


	For the three-month period ended March 31, 2019
	Upstream		Downstream		Gas and Power		Corporation and others		Total
Gas Stations		—		54,810		—		—		54,810
Power Plants		—		115		3,597		—		3,712
Distribution Companies		—		—		1,991		—		1,991
Retail distribution of natural gas		—		—		5,789		—		5,789
Industries, transport and aviation		—		23,885		6,215		—		30,100
Agriculture		—		10,278		—		—		10,278
Petrochemical industry		—		5,376		—		—		5,376
Trading		—		8,231		—		—		8,231
Oil Companies		—		3,796		—		—		3,796
Commercialization of liquefied petroleum gas		—		1,306		—		—		1,306
Other sales channels		328		1,621		1,886		3,628		7,463

		328		109,418		19,478		3,628		132,852

•

Target Market

Sales contracts in the domestic market resulted in 154,273 and 115,601 for the three-month period ended March 31, 2020 and 2019, respectively.

Sales contracts in the international market resulted in 24,655 and 17,251 for the three-month period ended March 31, 2020 and 2019, respectively.

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

24.

REVENUES (Cont.)

•

Contract balances

The following table reflects information regarding credits, contract assets and contract liabilities:


	March 31, 2020				December 31, 2019
	Noncurrent		Current		Noncurrent		Current
Credits for contracts included in Trade Receivables		4,689		93,271		6,785		100,706
Contract assets		—		722		—		203
Contract liabilities		—		7,669		294		7,404

Contract assets are mainly related to the work carried out by the Group under the construction contracts.

Contract liabilities are mainly related to advances received from customers under the contracts for the sale of commodities, fuels, crude oil, methanol, lubricants and by-products, diesel and natural gas, among others.

During the three-month period ended on March 31, 2020 and 2019 the Group has recognized 2,668 and 2,226, respectively, in revenues from ordinary activities arising from contracts entered into with customers in the statement of comprehensive income, which have been included in the balance for contract liabilities at the beginning of the period.

25.

COSTS


	For the three-month period ended March 31,
	2020			2019
Inventories at beginning of year		80,479			53,324
Purchases		44,395			36,104
Production costs⁽¹⁾		112,471			72,848
Translation effect		6,300			8,239
Adjustment for inflation⁽²⁾		108			99
Inventories at end of the period		(97,839	)		(65,860	)

		145,914			104,754

(1)	See Note 26,

(2)	Corresponds to adjustment for inflation of inventories’ opening balances of subsidiaries with the Peso as functional currency, which was charged to other comprehensive income.

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

26.

EXPENSES BY NATURE

The Group presents the statement of comprehensive income by classifying expenses according to their function as part of the “Costs”, “Administrative expenses”, “Selling expenses” and “Exploration expenses” lines. The following additional information is disclosed as required, on the nature of the expenses and their relation to the function within the Group for the three-month period ended March 31, 2020 and 2019:


	For the three-month period ended March 31, 2020
	Production costs⁽³⁾		Administrative expenses			Selling expenses			Exploration expenses		Total
Salaries and social security taxes		9,043		2,293			1,348			55		12,739
Fees and compensation for services		710		2,043	⁽²⁾		367			64		3,184
Other personnel expenses		2,438		234			134			12		2,818
Taxes, charges and contributions		2,361		97			2,709	⁽¹⁾		—		5,167
Royalties, easements and canons		11,895		—			20			19		11,934
Insurance		1,052		67			149			—		1,268
Rental of real estate and equipment		2,633		14			389			—		3,036	⁽⁴⁾
Survey expenses		—		—			—			288		288
Depreciation of property, plant and equipment		41,692		747			1,197			—		43,636
Amortization of intangible assets		540		120			9			—		669
Depreciation of right-of-use assets		4,545		—			207			—		4,752
Industrial inputs, consumable materials and supplies		5,524		15			78			22		5,639
Operation services and other service contracts		7,618		190			758			208		8,774	⁽⁴⁾
Preservation, repair and maintenance		14,265		388			357			11		15,021	⁽⁴⁾
Unproductive exploratory drillings		—		—			—			13		13
Transportation, products and charges		6,221		—			4,464			—		10,685	⁽⁴⁾
Provision for doubtful trade receivables		—		—			917			—		917
Publicity and advertising expenses		—		275			105			—		380
Fuel, gas, energy and miscellaneous		1,934		266			668			24		2,892	⁽⁴⁾

		112,471		6,749			13,876			716		133,812

(1)	Includes 1,578 corresponding to export withholdings.

(2)

Includes 23 corresponding to fees and remunerations of the Directors and Statutory Auditors of YPF’s Board of Directors. On April 30, 2020, the General Ordinary and Extraordinary Shareholders’ Meeting of YPF resolved to ratify the fees of 83 corresponding to fiscal year 2019 and to approve the approximate sum of 123 as fees with respect to fees and remunerations for the fiscal year 2020.

(3)	The expense recognized in the condensed interim consolidated statement of comprehensive income corresponding to research and development activities amounted to 297.

(4)	Includes 1,619 and 3,234 corresponding to short-term leases and to the lease charge related to the underlying asset return and/or use, respectively.


	For the three-month period ended March 31, 2019
	Production costs⁽³⁾		Administrative expenses			Selling expenses			Exploration expenses		Total
Salaries and social security taxes		5,742		1,577			788			127		8,234
Fees and compensation for services		392		1,210	⁽²⁾		216			6		1,824
Other personnel expenses		1,652		173			92			13		1,930
Taxes, charges and contributions		1,618		97			2,053	⁽¹⁾		—		3,768
Royalties, easements and canons		8,304		—			25			2		8,331
Insurance		503		49			48			—		600
Rental of real estate and equipment		1,833		9			255			—		2,097	⁽⁴⁾
Survey expenses		—		—			—			217		217
Depreciation of property, plant and equipment		26,893		472			683			—		28,048
Amortization of intangible assets		418		59			6			—		483
Depreciation of right-of-use assets		1,897		—			123			—		2,020
Industrial inputs, consumable materials and supplies		4,213		19			49			12		4,293
Operation services and other service contracts		4,457		131			501			20		5,109	⁽⁴⁾
Preservation, repair and maintenance		9,329		131			134			9		9,603	⁽⁴⁾
Unproductive exploratory drillings		—		—			—			992		992
Transportation, products and charges		4,166		5			3,385			—		7,556	⁽⁴⁾
Provision for doubtful trade receivables		—		—			799			—		799
Publicity and advertising expenses		—		522			119			—		641
Fuel, gas, energy and miscellaneous		1,431		314			544			123		2,412	⁽⁴⁾

		72,848		4,768			9,820			1,521		88,957

(1)	Includes approximately 1,170 corresponding to export withholdings.

(2)

Includes 12 corresponding to fees and remunerations of the Directors and Statutory Auditors of YPF’s Board of Directors. On April 26, 2019, the General Ordinary and Extraordinary Shareholders’ Meeting of YPF resolved to ratify the fees of 65 corresponding to fiscal year 2018 and to approve the approximate sum of 87 as fees with respect to fees and remunerations for the fiscal year 2019.

(3)	The expense recognized in the condensed interim consolidated statement of comprehensive income corresponding to research and development activities amounted to 195.

(4)	Includes 974 and 238 corresponding to short-term leases and to the lease charge related to the underlying asset return and/or use, respectively.

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

27.

OTHER NET OPERATING RESULTS


	For the three-month period ended March 31,
	2020				2019
Result for sale of participation in areas		6,356		⁽¹⁾		1,523		⁽²⁾
Lawsuits		(48	)			(694	)
Insurance		458				—
Construction incentive⁽³⁾		—				46
Miscellaneous		617				(288	)

		7,383				587

(1)	See Note 33.b to the annual consolidated financial statements.

(2)	See Note 3 to the annual consolidated financial statements.

(3)	See Note 36.

28.

NET FINANCIAL RESULTS


	For the three-month period ended March 31,
	2020			2019
Financial income
Interest income		1,655			1,104
Exchange differences		18,550			23,854
Financial accretion		601			385

Total financial income		20,806			25,343

Financial loss
Interest loss		(14,703	)		(8,600	)
Exchange differences		(11,726	)		(9,249	)
Financial accretion		(3,705	)		(2,148	)

Total financial costs		(30,134	)		(19,997	)

Other financial results
Results on financial assets at fair value with changes in results		(2,680	)		1,312
Results from derivative financial instruments		(33	)		45
Result from net monetary position		1,420			1,320

Total other financial results		(1,293	)		2,677

Total net financial results		(10,621	)		8,023

29.

INVESTMENTS IN JOINT OPERATIONS

The assets and liabilities as of March 31, 2020 and December 31, 2019, and expenses for the three-month period ended on March 31, 2020 and 2019, of JO and other agreements in which the Group participates are as follows:


	March 31, 2020		December 31, 2019
Noncurrent assets⁽¹⁾		239,799		221,219
Current assets		6,735		8,723

Total assets		246,534		229,942

Noncurrent liabilities		19,070		17,754
Current liabilities		24,709		27,641

Total liabilities		43,779		45,395


	For the three-month period ended March 31,
	2020		2019
Production cost		21,197		13,860
Exploration expenses		10		4

(1)	It does not include charges for impairment of property, plant and equipment because they are recorded by the partners participating in the JO.

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

30.

SHAREHOLDERS’ EQUITY

The Company’s subscribed capital as of March 31, 2020, is 3,924 and 9 own treasury shares represented by 393,312,793 book-entry shares of common stock and divided into four classes of shares (A, B, C and D), with a par value of Pesos 10 and 1 vote per share. These shares are fully subscribed, paid-in and authorized for stock exchange listing.

As of March 31, 2020, there are 3,764 Class A outstanding shares. As long as any Class A share remains outstanding, the affirmative vote of Argentine Government is required for: 1) mergers, 2) acquisitions of more than 50% of YPF shares in an agreed or hostile bid, 3) transfers of all the YPF’s production and exploration rights, 4) the voluntary dissolution of YPF or 5) change of corporate and/or tax address outside the Argentine Republic. Items 3) and 4) also require prior approval by the Argentine Congress.

The General Ordinary and Extraordinary Shareholders’ Meeting was held on April 30, 2020 and approved the financial statements of YPF for the fiscal year ended December 31, 2019, and additionally, approved the following resolution in relation to the allocation of retained earnings as of December 31, 2019: a) to completely eliminate the reserve for future dividends, the reserve for the purchase of treasury shares and the reserve for investments; b) to fully absorb accumulated losses in retained earnings up to 34,071 against the amounts corresponding to the discontinued reserves for up to such amount; and c) to allocate the remaining discontinued reserves of up to 13,184, as follows: (i) to allocate the sum of 550 to create a Reserve for the purchase of treasury shares in order to give the Board of Directors the possibility of acquiring treasury shares at the time it deems appropriate, and complying, during the execution of the plans, with the commitments assumed and to be assumed by them in the future; ii) to allocate the sum of 3,700 to a reserve for future dividends, empowering the Board of Directors, until the date of the next General Ordinary Shareholders’ Meeting at which the financial statements ended as of December 31, 2020 will be dealt with, to determine the time and amount for their distribution, if deemed convenient and achievable, taking into account the financial conditions and availability of funds as well as the operating results, investments and other matters that are deemed relevant in the development of the Company’s activities; and (iii) to allocate the sum of 8,934 to create a reserve for investments under the terms of article 70, third paragraph of the LGS.

31.

EARNINGS PER SHARE

The following table shows the net income and the number of shares that have been used for the calculation of the basic and diluted earnings per share:


	For the three-month period ended March 31,
	2020		2019
Net profit / (loss)		6,212		(8,185	)
Average number of shares outstanding		392,385,589		392,376,284
Basic and diluted earnings per share		15.83		(20.86	)

Basic and diluted earnings per share are calculated as shown in Note 2.b.13 to the annual consolidated financial statements.

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

32.

ISSUES RELATED TO MAXUS ENTITIES

Issues related to Maxus entities are described in Note 31 to the annual consolidated financial statements. Updates for the three-month period ended March 31, 2020 are described below:

•

Maxus Energy Corporation Liquidating Trust (“Liquidating Trust”) Claim

On March 23, 2020, the District Court denied the “Motion to Withdraw the reference” filed by Repsol and its related companies, and the one filed by YPF together with the other companies of the Group that are part of the Claim.

On March 30, 2020, the parties to the process submitted letters to the Court hearing the case arguing the existence of issues pending resolution in relation to the Discovery process.

On April 10, 2020, the parties to the process replied to the letters filed on March 30, 2020.

On April 20, 2020, a hearing was held between the parties and the judge hearing the case, by telephone and, in relation to the matters pending resolution.

As of the date of these condensed interim consolidated financial statements, the parties to the process are producing evidence in support of their arguments.

Considering the ongoing status of the lawsuit, the complexity of the complaint and the evidence that both parties should submit, the Company will continuously reassess any changes in the circumstances described and their impact on the results and financial position of the Group as such changes occur.

The Company, YPF Holdings, CLH Holdings, Inc. and YPF International will defend themselves, file the necessary legal remedies and exercise defensive measures in accordance with the applicable legal procedure to defend their rights.

33.

CONTINGENT ASSETS AND LIABILITIES

Contingent liabilities and contingent assets are described in Note 32 to the annual consolidated financial statements. No new significant contingent assets or liabilities have been identified in the three-month period ended on March 31, 2020, nor have there been any changes in the estimates of contingencies existing as of December 31, 2019.

34.

CONTRACTUAL COMMITMENTS

Contractual commitments are described in Note 33 to the annual consolidated financial statements. Updates for the three-month period ended March 31, 2020 are described below:

Investment project agreements

•

Agreement for the development of Loma La Lata Norte and Loma Campana areas

In relation to the Investment Agreement entered into between the Company and subsidiaries of Chevron Corporation for the joint exploitation of non-conventional hydrocarbons in the province of Neuquén, in the Loma Campana area, for the three-month period ended March 31, 2020, the Company and Compañía de Hidrocarburo No Convencional S.R.L. (“CHNC”) have carried out transactions which include the purchase of crude oil by YPF for 6,096. These transactions were executed based on the market’s general and regulatory framework. The net balance to be paid to CHNC as of March 31, 2020 is 1,719.

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

34.

CONTRACTUAL COMMITMENTS (Cont.)

•

Agreement for the development of the Bandurria Sur area

On March 5, 2020, an agreement was executed, under which YPF assigned to Bandurria Sur Investments S.A., an affiliate of Shell Argentina S.A. and Equinor Argentina AS (Argentina Branch), an 11% interest in the Bandurria Sur block. On April 29, 2020, Decree No. 512/2020 was issued, by which the Province of Neuquén approved the assignment in favor of Bandurria Sur Investments S.A. This agreement will become effective upon the compliance with certain conditions precedent, which, as of the date of issuance of these condensed interim consolidated financial statements, have not been met. Consequently, as of March 31, 2020, the 11% interest in this area was classified as an asset held for disposal.

•

CAN 100 exploration permit (offshore) –Block E-1 Reconversion

On April 16, 2020, having the conditions established under the assignment agreement been met, among them, the approval of the assignment pursuant to section 72 of the Hydrocarbons Law by the SE, which was granted through Resolution No. 55/2020, the parties to the agreement formalized the transaction, assigning 50% of the interest in the area and the operation. On April 22, 2020, YPF received US$ 22 million.

35.

MAIN REGULATIONS AND OTHER

Main regulations and others are described in Note 34 to the annual consolidated financial statements. Updates for the three-month period ended March 31, 2020 are described below:

35.a) Regulatory requirements for natural gas

•

Mechanisms for allocating the demand for natural gas

ENARGAS Resolution No. 39/2020

On May 5, 2020, ENARGAS Resolution No. 39/2020 was published in the BO, extending the effective period of ENARGAS Resolution No. 59/2018 to September 30, 2020 (included).

Terms and Conditions for the Distribution of Natural Gas through Networks

On April 10, 2020, the SE instructed companies producing natural gas to renew, until the expiration date of the period established in Section 5 of Law No. 27,541, in the same terms and conditions, the validity of all supply agreements (inside and outside the transportation system) and all natural gas purchase agreements, whose expiration has operated or operates in the period between March 31, 2020 and the expiration date of the period established in the aforementioned Section 5, having to adopt the pertinent precautions to proceed with their formalization.

On April 14, 2020, YPF sent a note to the SE stating: (i) the debt situation of the Distributors, IEASA and CAMMESA that requires their urgent regularization; (ii) the difficult situation the production sector is going through since 2018 when the variation in the price of natural gas purchased by the Distributors was found not to be transferred to tariffs, aggravated since 2019 by the delay of the Argentine Government in the update of the exchange rate along with the lack of payment of the commitments and subsidies, among others; (iii) its intention to promote the extension of contracts until the end of the period established in Section 5 of Law No. 27,541, subject to the modality established in each case and depending on the availability of YPF’s gas, without implying consent to the note and making reservation of rights.

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

35.

MAIN REGULATIONS AND OTHERS (Cont.)

On April 20, 2020, YPF sent an extension proposal to the Distributors, which were mostly accepted.

On April 27, 2020 the ENARGAS Resolution No. 27/2020 was published in the BO, repealing ENARGAS Resolution No. 72/2019 which approved the “Methodology for Transferring the Gas Price to Tariffs and the General Procedure for Calculating Accumulated Daily Differences” that set forth the criteria that ENARGAS would apply to determine the transfer the price of gas to tariffs at the TSEP, and established that, in principle, the obligation of the distribution licensees to make reasonable efforts to obtain the best conditions and prices in their gas purchase transactions for their eventual transfer to tariffs, might be deemed complied with if such contracts resulted from a public bidding process within the scope of MEGSA, and provided they complied with section 8 of Decree No. 1053/2018, that is, that in no case could the highest cost caused by changes in the exchange rate occurring during each seasonal period be transferred to users who receive full service.

•

Abstention from cutting off gas distribution services – LPG commercialization in the domestic market

In addition to the measures adopted by the Argentine Government due to the COVID-19 outbreak mentioned in Note 2.c, on March 25, 2020, Decree No. 311/2020 was published in the BO, which blocks interruption of services due to non-payment or late payment for a period of 180 days to certain residential users and non-residential users, which includes gas distribution providers through networks.

Decree No. 311/2020 also established the maximum reference prices for the sale of LPG in bottles, cylinders and/or bulk for domestic consumption will remain at the current prices for a period of 180 days. The Enforcing Authority shall define the mechanisms required to guarantee the appropriate residential demand supply.

On April 18, 2020, Resolution No. 173/2020 issued by the Ministry of Productive Development, established that the SE had to prepare a report on the normal commercialization volumes of LPG in bottles, cylinders and/or in bulk for domestic market consumption, the price of the Household Program (Programa Hogar) and the market price of the product in cylinders and/or bulk for residential consumption as of the date of publication of Decree No. 311/2020 and the mechanisms required to ensure the adequate supply of the residential demand. Besides, Resolution No. 173/2020 clarifies the LPG may fluctuate below the levels established in Decree No. 311/2020, when the pricing mechanisms for such fluid shall so allow.

•

Remuneration of generators

On April 8, 2020, by means of a letter, the Secretary of Energy instructed CAMMESA to postpone until further notice, the implementation of Annex VI – Update of the values established in Argentine Pesos, of SE Resolution No. 31/2020 regarding the remuneration of generators.

•

Law No. 27,541 on Social Solidarity and Productive Reactivation within the Public Emergency Framework

On March 17, 2020, Decree No. 278/2020 was published in the BO, which ordered the government intervention of the ENARGAS until December 31, 2020, in compliance with section 6 of Law No. 27,541.

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

35.

MAIN REGULATIONS AND OTHERS (Cont.)

35.b) Other regulatory requirements

•

CNV Regulatory Framework (N.T. 2013)

a) CNV General Resolution No. 622

i.	Pursuant to section 1, Chapter III, Title IV of such Resolution, a description of the notes to the consolidated financial statements containing information required under the Resolution in the form of exhibits follows.


Exhibit A – Fixed Assets		Note 9 Property, plant and equipment
Exhibit B – Intangible assets		Note 8 Intangible assets
Exhibit C – Investments in companies		Note 11 Investments in associates and joint ventures
Exhibit D – Other investments		Note 7 Financial instruments by category
Exhibit E – Provisions		Note 14 Trade receivables Note 13 Other receivables Note 11 Investments in associates and joint ventures Note 9 Property, plant and equipment Note 8 Intangible assets Note 16 Provisions
Exhibit F – Cost of goods sold and services rendered		Note 25 Costs
Exhibit G – Assets and liabilities in foreign currency		Note 38 Assets and liabilities in currencies other than the Peso

ii.

On March 18, 2015, the Company was registered with the CNV under the category “Settlement and Clearing Agent and Trading Agent—Own account”, record No. 549. Considering the Company’s business, and the CNV Rules and its Interpretative Criterion No. 55, the Company will not, under any circumstance, offer brokerage services to third parties for transactions in markets under the jurisdiction of the CNV, and it will also not open operating accounts to third parties to issue orders and trade in markets under the jurisdiction of the CNV.

Moreover, in accordance with the amendment to the CNV Rules provided for by General Resolution No. 731/2018, the Company is subject to the provisions of Section 5 b.1 of Title VII, Chapter II, of the CNV Rules, “Settlement and Clearing Agent—Direct Participant”. In this respect, as set forth in Section 13, Title VII, Chapter II, of the CNV Rules, as of March 31, 2020, the equity of the Company exceeds the minimum equity required by such Rules, which amounts to 18. Additionally, the balancing entry requirement established in Section 15 does not apply to the Company, as established in Section 5 b.1 of the aforementioned regulations.

b) CNV General Resolutions No. 629/2014 and No. 813/2019

Due to General Resolutions No. 629/2014 and No. 813/2019 of the CNV, the Company informs that supporting documentation of YPF’s operations, which is not in YPF’s headquarters, is stored in the following companies:

•

Adea S.A. located in Barn 3 – Route 36, Km. 31.5 – Florencio Varela – Province of Buenos Aires.

•

File S.R.L., located in Panamericana and R.S. Peña – Blanco Encalada – Luján de Cuyo – Province of Mendoza.

Additionally, it is placed on record that the detail of the documentation given in custody is available at the registered office, as well as the documents mentioned in section 5, subsection a.3, Section I, Chapter V, Title II of the CNV Rules.

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

36.

BALANCES AND TRANSACTIONS WITH RELATED PARTIES

The information detailed in the tables below shows the balances with associates and joint ventures as of March 31, 2020 and December 31, 2019 and transactions with the mentioned parties for the three-month period ended March 31, 2020 and 2019.


	March 31, 2020								December 31, 2019
	Other receivables		Trade receivables		Accounts payable		Contract liabilities		Other receivables		Trade receivables		Accounts payable		Contract liabilities
	Current		Current		Current		Current		Current		Current		Current		Current
Joint ventures:
YPF EE		318		1,180		3,022		569		296		2,278		2,183		679
Profertil		12		546		330		—		12		587		114		—
MEGA		—		2,928		455		—		—		2,995		350		—
Refinor		—		1,233		132		—		—		956		123		—
Bizoy S.A.		—		18		—		—		—		17		—		—
Petrofaro S.A.		—		6		—		—		—		6		—		—
OLCLP		88		5		119		—		56		59		70		—

		418		5,916		4,058		569		364		6,898		2,840		679

Associates:
CDS		130		174		—		—		—		1,063		—		—
YPF Gas		93		208		98		—		90		317		73		—
Oldelval		—		30		518		—		—		77		401		—
Termap		—		—		122		—		—		—		182		—
OTA		9		—		8		—		9		—		14		—
OTC		—		—		—		—		4		—		—		—
GPA		—		—		208		—		—		—		99		—
Oiltanking		—		1		193		—		—		—		198		—
Gas Austral S.A.		—		22		1		—		—		12		1		—

		232		435		1,148		—		103		1,469		968		—

		650		6,351		5,206		569		467		8,367		3,808		679


	For the three-month period ended March 31,
	2020						2019
	Revenues		Purchases and services		Net interest income (loss)		Revenues		Purchases and services		Net interest income (loss)
Joint ventures:
YPF EE		656		1,165		—		752		830		—
Profertil		893		666		—		904		295		—
MEGA		3,912		554		—		2,657		98		—
Refinor		487		146		—		578		83		(16	)
Petrofaro S.A.		—		—		—		80		54		—
OLCLP		14		141		—		—				—

		5,962		2,672		—		4,971		1,360		(16	)

Associates:
CDS		425		—		—		551		—		—
YPF Gas		504		74		2		428		56		54
Oldelval		55		650		3		39		436		—
Termap		—		289		—		—		268		—
OTA		—		2		—		—		9		—
GPA		—		308		—		—		81		—
Oiltanking		1		353		—		1		276		—
Gas Austral S.A.		51		—		—		45		—		—

		1,036		1,676		5		1,064		1,126		54

		6,998		4,348		5		6,035		2,486		38

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

36.

BALANCES AND TRANSACTIONS WITH RELATED PARTIES (Cont.)

Additionally, in the normal course of business, and considering being the main energy group in Argentina, the Group’s client/suppliers portfolio encompasses both private sector entities as well as national public sector entities. As required by IAS 24 “Related party disclosures”, among the major transactions above mentioned the most important are:


		Balances						Transactions
		Receivables / (Liabilities)						Income / (Costs)
		March 31, 2020			December 31, 2019			For the three-month period ended March 31,
Customers / Suppliers	Ref.	March 31, 2020			December 31, 2019			2020			2019
SGE	(1)(15)		23,676			26,223			—			—
SGE	(2)(15)		3,878			3,416			699			739
SGE	(3)(15)		159			155			10			21
SGE	(4)(15)		180			166			—			7
SGE	(5)(15)		613			475			138			—
SGE	(6)(15)		253			172			84			96
SGE	(7)(15)		4,749			4,417			—			522
Ministry of Transport	(8)(15)		2,682			2,056			1,332			1,397
Secretariat of Industry	(9)(15)		—			—			—			46
CAMMESA	(10)		5,524			627			4,211			1,984
CAMMESA	(11)		(983	)		386			(1,038	)		(766	)
IEASA	(12)		4,665			5,041			1,221			1,389
IEASA	(13)		(637	)		(505	)		(43	)		(49	)
Aerolíneas Argentinas S.A. and Austral Líneas Aéreas Cielos del Sur S.A.	(14)		4,216			5,033			3,996			3,369

(1)	Benefits for the Stimulus Programs for the Additional Injection of Natural Gas.

(2)	Benefits for the Stimulus Program for Investments in Natural Gas Production Developments from Non-Conventional Reservoirs.

(3)	Benefits for the propane gas supply agreement for undiluted propane gas distribution networks.

(4)	Benefits for the Household Program (Programa hogares con garrafa)

(5)	Benefits for recognition of the financial cost generated by payment deferral by providers of the distribution service of natural and undiluted propane gas through networks.

(6)	Procedure to compensate for the lower income that Natural Gas Piping Distribution Service Licensed Companies receive from their users for the benefit of Metrogas.

(7)	Procedure to compensate the payment of the daily differences accumulated on a monthly basis between the price of the gas purchased by Natural Gas Piping Distribution Service Companies and the price of the natural gas included in the respective tariff schemes for the benefit of Metrogas.

(8)	The compensation for providing diesel to public transport of passengers at a differential price.

(9)	Incentive for domestic manufacturing of capital goods, for the benefit of AESA.

(10)	The provision of fuel oil and natural gas.

(11)	Purchases of energy. As of December 31, 2019, the Group has a credit balance for energy purchases.

(12)	Sale of natural gas and provision of regasification service in the regasification project of LNG in Escobar.

(13)	The purchase of natural gas and crude oil.

(14)	The provision of jet fuel.

(15)	Income recognized under the guidelines of IAS 20.

Additionally, the Group has entered into certain financing and insurance transactions with entities related to the national public sector. Such transactions consist of certain financial transactions that are described in Notes 15 and 21 to these condensed interim consolidated financial statements, and transactions with Nación Seguros S.A. related to certain insurance policies contracts.

On the other hand, the Group holds BONAR 2020 (see Note 34.g to the annual consolidated financial statements) and 2021, classified as “Investments in financial assets”.

Furthermore, in relation to the investment agreement signed between YPF and Chevron subsidiaries, YPF has an indirect non-controlling interest in CHNC with which YPF carries out transactions in connection with the mentioned investment agreement. See Note 33.b to the annual consolidated financial statements and see Note 34 to these condensed interim consolidated financial statements.

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

36.

BALANCES AND TRANSACTIONS WITH RELATED PARTIES (Cont.)

The table below discloses the accrued compensation for the YPF’s key management personnel, including members of the Board of Directors and Vice Presidents (managers with executive functions appointed by the Board of Directors), for the three-month period ended March 31, 2020 and 2019:


	For the three-month period ended March 31,
	2020		2019
Short-term employee benefits⁽¹⁾		137		89
Share-based benefits		44		22
Post-retirement benefits		6		4
Termination benefits		27		—

		214		115

(1)	Does not include Social Security contributions of 32 and 20 for the three-month period ended March 31, 2020 and 2019, respectively.

37.

EMPLOYEE BENEFIT PLANS AND SIMILAR OBLIGATIONS

Note 2.b.10 to the annual consolidated financial statements describes the main characteristics and accounting treatment for benefit plans implemented by the Group.

i.	Retirement plan

The total charges recognized under the Retirement Plan amounted to approximately 40 and 38 for the three-month period ended March 31, 2020 and 2019, respectively.

ii.	Objective performance bonus programs and performance evaluation programs

The amount charged to expense related to the programs described was 576 and 690 for the three-month period ended March 31, 2020 and 2019, respectively.

iii.	Share-based benefit plan

The amount charged to expense in relation with the share-based plans, which are disclosed according to their nature, was 147 and 103 for the three-month period ended March 31, 2020 and 2019, respectively.

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

38.

ASSETS AND LIABILITIES IN CURRENCIES OTHER THAN THE PESO


	March 31, 2020						December 31, 2019
	Amount in currencies other than the Peso		Exchange rate in force⁽¹⁾		Total		Amount in currencies other than the Peso		Exchange rate in force⁽¹⁾		Total
Noncurrent assets
Other receivables
U.S. dollar		1		64.27		64		1		59.69		60
Bolivian peso		14		9.23		128		14		8.58		119
Trade receivables
U.S. dollar		145		64.27		9,304		220		59.69		13,132

Total noncurrent assets						9,496						13,311

Current assets
Other receivables
U.S. dollar		151		64.27		9,727		276		59.69		16,474
Euro		3		70.77		226		4		66.85		267
Chilean peso		7,668		0.08		613		5,241		0.08		419
Yen		106		0.59		62		151		0.55		83
Trade receivables
U.S. dollar		923		64.27		59,317		939		59.69		56,030
Chilean peso		14,485		0.08		1,159		17,221		0.08		1,378
Investments in financial assets
U.S. dollar		85		64.27		5,456		140		59.69		8,370
Cash and cash equivalents
U.S. dollar		868		64.27		55,758		723		59.69		43,172
Chilean peso		3,378		0.08		270		1,685		0.08		135
Bolivian peso		—		—		—		10		8.58		90

Total current assets						132,588						126,418

Total assets						142,084						139,729

Noncurrent liabilities
Provisions
U.S. dollar		2,050		64.47		132,144		2,020		59.89		120,968
Lease liabilities
U.S. dollar		644		64.47		41,502		674		59.89		40,388
Loans
U.S. dollar		5,750		64.47		370,713		6,863		59.89		411,032
Other liabilities
U.S. dollar		11		64.47		693		12		59.89		699
Accounts payable
U.S. dollar		3		64.47		211		6		59.89		359

Total noncurrent liabilities						545,263						573,446

Current liabilities
Provisions
U.S. dollar		59		64.47		3,809		59		59.89		3,555
Taxes payable
Chilean peso		2,891		0.08		231		3,102		0.08		248
Salaries and social security
U.S. dollar		7		64.47		463		7		59.89		406
Lease liabilities
U.S. dollar		347		64.47		22,353		357		59.89		21,384
Loans
U.S. dollar		2,200		64.47		141,831		1,229		59.89		73,599
Chilean peso		3,408		0.08		273		2,993		0.08		239
Other liabilities
U.S. dollar		21		64.47		1,376		22		59.89		1,310
Accounts payable
U.S. dollar		1,001		64.47		64,555		1,181		59.89		70,711
Euro		14		71.15		970		16		67.23		1,053
Chilean peso		5,964		0.08		477		3,744		0.08		300
Bolivian peso		—		—		—		7		8.58		60
Yen		139		0.60		84		133		0.55		73

Total current liabilities						236,422						172,938

Total liabilities						781,685						746,384

(1)	Exchange rate in force at March 31, 2020 and December 31, 2019 according to BNA.

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

39.

SUBSEQUENT EVENTS

Public securities and public debt restructuring

On April 6, 2020, Decree No. 346/2020 was published in the BO, which deferred payments of interest services and principal repayments of the national public debt instrumented by U.S. dollar-denominated securities issued under the Argentine law until December 31, 2020, or until a previous date established by the Ministry of Finance considering the degree of progress and execution of the public debt sustainability restoration process. This includes the BONAR 2020 currently held by the Group and valued at their fair value with changes in results.

Among the exceptions established by such Decree are, the “Natural Gas Program Bonds” issued through Joint Resolution No. 21/2019 of the Secretariats of Finance and Treasury, of which the Group is a creditor, which are valued at amortized cost. See Note 36.

Additionally, the Argentine Government issued a proposal for restructuring its international public debt (under development process as of the date of issuance of these condensed interim consolidated financial statements), which includes BONAR 2021, currently held by the Group and valued at fair value with changes in results. Besides, the Ministry of Finance informed in a statement that it decided to use the grace periods in the payment of interest on certain global bonds, among which are BONAR 2021, whose interests maturied on April 22, 2020 and are unpaid. On May 6, 2020, the Group accepted the public debt swap.

Issuance of Negotiable Obligations

On April 17, 2020, the Company issued the following NOs:

•

NO Series X denominated and payable in pesos, accruing interest at a variable rate (BADLAR plus 3%) with a three-month maturity, in a principal amount of 993.

•

Additional NO Series III denominated and payable in pesos, accruing interest at a variable rate (BADLAR plus 6%) and maturing on December 2020, in a principal amount of 496.

Transcription of the Inventory and Balances Book

Due to the measures adopted by the Argentine Government to protect the population in general and fight COVID-19 mentioned in Note 2.c, as of the date of issuance of these condensed interim consolidated financial statements as of March 31, 2020, the Inventory and Balances Book is pending transcription.

As of the date of issuance of these condensed interim consolidated financial statements, there are no other significant subsequent events that require adjustments or disclosure in the financial statements of the Group as of March 31, 2020, or their description in note to these condensed interim consolidated financial statements, which were not already considered in such consolidated financial statements according to IFRS.

GUILLERMO EMILIO NIELSEN

President

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


	YPF Sociedad Anónima

Date: May 18, 2020	By:	/s/ Ignacio Miguel Rostagno
	Name:	Ignacio Miguel Rostagno
	Title:	Market Relations Officer