Form 6-K
Table of Contents

 

 

 

FORM 6-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Report of Foreign Issuer

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

the Securities Exchange Act of 1934

For the month of November, 2014

Commission File Number: 001-12102

YPF Sociedad Anónima

(Exact name of registrant as specified in its charter)

Macacha Güemes 515

C1106BKK Buenos Aires, Argentina

(Address of principal executive office)

Indicate by check mark whether the registrant files or will file

annual reports under cover of Form 20-F or Form 40-F:

Form 20-F X    Form 40-F       

Indicate by check mark if the registrant is submitting the Form 6-K

in paper as permitted by Regulation S-T Rule 101(b)(1):

Yes                  No               X    

Indicate by check mark if the registrant is submitting the Form 6-K

in paper as permitted by Regulation S-T Rule 101(b)(7):

Yes                  No               X    

 

 

 

 

 


Table of Contents

YPF Sociedád Anonima

TABLE OF CONTENTS

ITEM

 

1 Translation of Consolidated Results Q3 2014.

 

2


Table of Contents

LOGO

 

 

 

YPF S.A.

Consolidated Results

Q3 2014


Table of Contents
LOGO    Consolidated Results Q3 2014      

 

 

 

CONTENT

 

1. MAIN MILESTONES AND ECONOMIC MAGNITUDES FOR Q3 2014

     3   

2. ANALYSIS OF OPERATING RESULTS FOR Q3 2014

     4   

3. ANALYSIS OF OPERATING RESULTS BY BUSINESS UNIT FOR Q3 2014

       

3.1 UPSTREAM

     6   

3.2 DOWNSTREAM

     9   

3.3 CORPORATE AND OTHERS

     11   

3.4 RELATED COMPANIES

     11   

4. LIQUIDITY AND SOURCES OF CAPITAL

     11   

5. TABLES AND NOTES

     12   

5.1 CONSOLIDATED STATEMENT OF INCOME

     13   

5.2 CONSOLIDATED BALANCE SHEET

     14   

5.3 CONSOLIDATED STATEMENT OF CASH FLOW

     15   

5.4 CONSOLIDATED INFORMATION ON BUSINESS SEGMENTS

     16   

5.5 MAIN DOLLAR-DENOMINATED FINANCIAL MAGNITUDES

     17   

5.6 MAIN PHYSICAL MAGNITUDES

     18   

 

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Table of Contents
LOGO    Consolidated Results Q3 2014      

 

 

 

Operating Income for Q3 2014 reached ARS 8,044 million, 134% above Q3 2013

 

Q3  

 

  2013    

  

Q2  

 

2014  

  

Q3  

 

2014  

  

Var.%  

 

Q3 14/Q3 13  

          ( Unaudited Figures)            

Jan - Sep (*)  

 

2013  

  

Jan - Sep  

 

2014  

  

Var.%  

 

2014 / 2013  

             
24,244      35,330      38,209      57.6%    

Revenues

 

(Million ARS)

 

   64,819      104,203      60.8%  
             
3,444      5,950      8,044      133.6%    

Operating income

 

(Million ARS)

 

   8,195      18,378      124.3%  
             
1,414      1,526      3,212      127.2%    

Net income (**)

 

(Million ARS)

 

   3,763      7,619      102.5%  
             
6,581      10,464      13,464      104.6%    

Adj. EBITDA

 

(Million ARS)

 

   16,126      32,288      100.2%  
             
3.60      3.89      8.19      127.7%    

Earnings per share ARS (**)

 

(ARS per Share)

 

   9.57      19.43      103.1%  
             
4,573      2,948      5,734      25.4%    

Comprehensive Income

 

(Million ARS)

 

   10,127      22,708      124.2%  
             
8,028      10,866      13,776      71.6%    

Capital Expenditures (***)

 

(Million ARS)

 

   18,820      34,364      82.6%  

Adjusted EBITDA = Net income attributable to shareholders + Net income (loss) for non-controlling interest - Deferred income tax - Income tax - Financial income (losses) gains on liabilities - Financial income gains (losses) on assets - Income on investments in companies + Depreciation of fixed assets + Amortization of intangible assets. (*) Jan - Sep 2013 results do not include the provision of claims relating to AESU and TGM arbitration. (**) Attributable to controlling shareholder.

(***) Capital expenditures for Jan- Sep 2014 results do not include expenditures relating to the acquisitions of Apache Group assets in Argentina, the interest acquired in the Puesto Hernández joint venture, Las Lajas and La Ventana.

 1.   MAIN MILESTONES AND ECONOMIC MAGNITUDES OF Q3 2014

 

   

Revenues for Q3 2014 were ARS 38,209 million, 57.6% higher than Q3 2013.

 

   

Operating income for Q3 2014 was ARS 8,044 million, 133.6% higher than the same period in the previous year.

 

   

Adjusted EBITDA for Q3 2014 was ARS 13,464 million, 104.6% higher compared to Q3 2013.

 

   

Net income for Q3 2014 was ARS 3,212 million, 127.2% higher than the ARS 1,414 million reported for the same period in 2013.

 

   

Operating cash flow for Q3 2014 reached ARS 18,249 million, 95.1% higher compared to the same period in 2013.

 

   

For Q3 2014, total hydrocarbon production increased by 15.4% compared to the same period in 2013 to reach 573.0 Kbped. Natural gas production reached 44.9 Mm3d, 26.1% higher compared to the same period in 2013, while crude oil production increased by 4.6%, to reach 246.0 Kbbld.

 

   

In the Downstream business segment, the total crude processing level in Q3 2014 was 94%, 2.4% higher than same period last year.

 

   

Investment in fixed assets for Q3 2014 was ARS 13,776 million, a 71.6% increase compared to ARS 8,028 million invested in Q3 2013.

 

3


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LOGO    Consolidated Results Q3 2014      

 

 

 

2. ANALYSIS OF OPERATING RESULTS FOR Q3 2014

Ordinary income for Q3 2014 was ARS 38,209 million, 57.6% higher than the same period in the previous year. This increase was driven mainly by higher sales in the domestic market of: (i) gasoline and diesel of ARS 8,681 million (an increase of 64%), (ii) natural gas of ARS 2,193 million (an increase of 86%) fueled by stronger production for the period and the addition of sales from Yacimientos del Sur (“YSUR”) of approximately ARS 441 million, (iii) petrochemical products of ARS 416 million (an increase of 63%), (iv) fuel oil of ARS 348 million (an increase of 43%) and (v) jet fuel of ARS 348 million (an increase of 85%). In turn, exports increased ARS 576 million (an increase of 20%), as a result of increases in average prices in Argentine peso terms due to the devaluation reported for the period. Exports of flour and oils totaled ARS 983 million (an increase of 26%), jet fuel reached ARS 855 million (an increase of 49%) and petrochemical products reached ARS 704 million (an increase of 61%).

Costs of sales for Q3 2014 were ARS 26,365 million, 47.5% higher than Q3 2013. Purchases increased principally due to the price increase in Argentine peso terms for crude oil purchased from third parties in the domestic market, which outpaced lower volumes purchased due to increased production for the period (an increase of ARS 635 million). In turn, imports of diesel decreased by 7%, however, the 36% decrease in volume of diesel purchased was partially offset by higher average prices in Argentine peso terms for the imported products. There were no imports of gasoline in Q3 2014, the same as Q3 2013. Other costs of sales increased mainly on account of (i) higher depreciation of fixed assets of ARS 2,183 million due to increased investment activity and the impact of the depreciation of the Argentine peso affecting amortization, (ii) greater activity and expenses for construction and service contracts of ARS 2,023 million, driven partially by the addition of YSUR, and (iii) higher royalty payments of ARS 976 million as a consequence of greater production volumes and higher wellhead prices in Argentine peso terms. Additionally, as to the damage affecting the La Plata Refinery in Q2 2013, insurance compensation of ARS 505 million was received in Q3 2014 for lost profits affecting YPF’s business. This amount was recorded as a reduction to cost of sales based on the premise that lower volumes of refined products would have been imported if the refinery had not been damaged.

Marketing expenses for Q3 2014 were ARS 2,766 million, an increase of ARS 780 million compared to the same period in 2013, driven principally by increased transport expenses for products and higher transported and marketed volumes as well as increased bank transaction taxes. This was offset by lower withholding taxes on exports mainly due to lower volumes of exported crude oil. Administration expenses for Q3 2014 were ARS 1,119 million, ARS 465 million higher than Q3 2013. The increase was mainly due to higher payroll expenses and IT services together with the addition of YSUR. Other revenues (expenses) net increased approximately ARS 397 million for Q3 2014, compared to the same period in 2013. This was mostly due to proceeds from the sale to Sinopec of a 30% interest in the concession extension in the La Ventana area in the province of Mendoza, which had been renewed on an exclusive basis.

The financial results for Q3 2014 were negative ARS 53 million, compared to positive ARS 540 million for the same period in 2013. In this respect, foreign exchange gains on net monetary liabilities decreased due to slowing depreciation of the Argentine peso during Q3 2014. In turn, the negative financial results increased due to greater interest accrued on financial debt.

 

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LOGO    Consolidated Results Q3 2014      

 

 

 

The income tax amount for Q3 2014 was ARS 4,810 million, approximately ARS 2,299 million higher than the Q3 2013 income tax of ARS 2,511 million. This increase arises principally from increased current tax liability of ARS 2,931 million (an increase of ARS 1,893 million) primarily as a result of higher results and to a lesser extent the increase of deferred income tax of ARS 406 million.

Net income for the quarter was ARS 3,212 million, 127.2% higher compared to the same period in 2013.

Total investment in fixed assets for the quarter was ARS 13,776 million, 71.6% higher than that for Q3 2013. This greater investment arises from (i) an increase in development activities, principally well drilling and workovers and (ii) progress in the set of projects developed in YPF’s Downstream business segment.

 

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LOGO    Consolidated Results Q3 2014      

 

 

 

3. ANALYSIS OF RESULTS BY BUSINESS UNIT FOR Q3 2014

3.1 UPSTREAM

 

 

Q3  

2013  

 

 

Q2  

2014  

 

 

Q3  

2014  

 

 

Var.% 

Q3 14/Q3 13 

 

 

( Unaudited Figures)

 

 

Jan - Sep (*)  

2013  

 

 

Jan - Sep  
2014  

 

 

Var.%  

2014 / 2013  

               

2,135  

 

3,305  

  4,463    

109.0%

 

Operating income

(Million ARS)

  5,450     10,781    

97.8%  

           

10,963  

 

16,685  

  19,357    

76.6%

 

Revenues

(Million ARS)

  30,024     50,961    

69.7%  

           

235.1  

 

240.9  

  246.0    

4.6%

 

Crude oil production

(Kbbld)

  229.9     242.8    

5.6%  

           

37.7  

 

41.2  

  44.6    

18.3%

 

NGL production

(Kbbld)

  46.0     46.5    

1.1%  

           

35.6  

 

43.5  

  44.9    

26.1%

 

Gas production

(Mm3d)

  33.3     41.9    

25.8%  

           

496.5  

 

555.8  

  573.0    

15.4%

 

Total production

(Kboed)

  485.4     553.0    

13.9%  

           

279  

 

727  

  306    

9.5%

 

Exploration costs

(Million ARS)

  525     1,230    

134.3%  

           

6,642  

 

8,672  

  11,120    

67.4%

 

Capital Expenditures (**)

(Million ARS)

  15,810     28,395    

79.6%  

           

2,675  

 

3,745  

  4,618    

72.6%

 

Depreciation

(Million ARS)

  6,689     11,664    

74.4%  

           
                Realization Prices            
           

70.8  

 

75.5  

  76.1    

7.5%

 

Crude oil prices in domestic market (***)

Period average (USD/bbl)

 

  70.3     72.7    

3.5%  

           

3.89  

 

4.18  

  4.28    

10.0%

 

Average gas price (****)

(USD/Mmbtu)

  3.79     4.24    

12.0%  

(*) Jan - Sep 2013 results do not include the provision for claims relating to AESU and TGM arbitration. (**) Jan- Sep 2014 capital expenditures do not include expenditures relating to the acquisition of Apache Group assets in Argentina, expenditures relating to the interest acquired in the Puesto Hernández joint venture, Las Lajas and La Ventana. (***) Q2 and Q3 2014 include YSUR crude oil sales price. (****) Q3 and Jan- Sep 2013 figures have been recalculated. Also, Q2 and Q3 2014 include gas sales prices from YSUR.

Upstream operating income was ARS 4,463 million, 109% higher compared to Q3 2013.

Sales increased by 76.6% in Q3 2014 compared to the same period in 2013, primarily due to increased sales of crude oil and natural gas. Crude oil sales increased by 71.8% (an increase of ARS 6,319 million) due to a 55% increase in the price per barrel in Argentine peso terms and greater volumes produced and transferred to YPF’s Downstream business segment, which was partially offset by a decrease of crude oil exports (a decrease of ARS 181 million). Natural gas income increased by 85% compared to Q3 2013 due to higher volumes produced and a higher average sales price.

The price in USD terms for crude oil in the domestic market for Q3 2014 increased by 7.5% to 76.1 USD/bbl. For natural gas, the average price was 4.28 USD/Mmbtu, which was 10% higher than Q3 2013. In both products, the average sales price for crude oil and natural gas from YSUR of 82.2 USD/bbl and 3.10 USD/Mmbtu, respectively, was fully consolidated in Q3 2014.

 

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LOGO    Consolidated Results Q3 2014      

 

 

 

During Q3 2014 total hydrocarbon production was 573.0 Kboed, 15.4% higher than Q3 2013; crude oil production was 246.0 Kbbld (an increase of 4.6%); natural gas production was 44.9 Mm3d, (an increase of 26.1%) and NGL production was 44.6 Kbbld (an increase of 18.3%).

During the third quarter of 2014, consolidated total hydrocarbon production from YSUR was 48.9 Kboed, including 9.5 Kbbld of crude oil, 2.1 Kbbld of NGL and 5.9 Mm3d of natural gas.

During Q3 2014, production from unconventional areas totaled 31.9 Kbped of hydrocarbons, including 18.9 Kbbld of crude oil, 6.0 Kbbld of NGL and 1.1 Mm3d of natural gas, of which YPF consolidates approximately 50%. As for development activity, 40 wells have been put into production from Vaca Muerta, reaching a total of almost 270 producing wells. Operations are running with 23 active drilling rigs and 8 workovers.

With respect to tight gas activity: (i) in the project to develop the Las Lajas formation, 12 wells were drilled and developed in Q3 2014 and the average production of natural gas was 4.10 Mm3d and (ii) in the project to develop the Mulichinco formation in the Rincón del Mangrullo area natural gas production net to YPF was 0.73 Mm3d.

Work continues on the recovery of production in the Malargüe area which was affected by the fire that occurred on March 21 at the Cerro Divisadero crude oil treating plant, located in the Mendoza province. During Q3 2014, crude oil production in Malargue reached an average of 5.8 kbbld (3.4 kbbld below levels before the incident).

In the third quarter, ARS 359 million were received for the sale to Sinopec of a 30% stake in the concession extension in La Ventana area, in the province of Mendoza. It had been renewed on an exclusive basis and was reported under Other income (expenses) net.

Costs for Q3 2014 increased by 68.7% (an increase of ARS 6,066 million), mainly due to (i) higher amortization (an increase of ARS 1,943 million) resulting from higher investment and higher valuations of assets in Argentine pesos terms, (ii) an increase in costs for outsourced services of ARS 1,602 million, mainly relating to increased activity and the consolidation of YSUR, (iii) increased royalties of ARS 976 million, mainly due to higher production volumes and higher Argentine peso-denominated prices at wellhead and the consolidation of YSUR, (iv) increases in exploration costs of ARS 27 million mainly due to higher charges for geological studies performed in the current period. The unit cash costs in US dollars decreased by almost 2% in comparison with Q3 2013, remaining at the same level as the immediately preceding quarter, principally due to both higher production and the impact of the currency devaluation that offset higher activity.

Operating income in Q3 2014 from affiliated Upstream companies, including mainly YSUR, YPF Holdings, YPF International, YPF Energía Eléctrica (including solely the Ramos oil field) and YPF Servicios Petroleros, was ARS 121 million compared to ARS 25 million in Q3 2013. It should be noted that this variation is included in the explanation mentioned above.

 

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LOGO    Consolidated Results Q3 2014      

 

 

 

CAPEX

Capital expenditures in the Upstream business segment were ARS 11,120 million in Q3 2014, 67.4% higher than the ARS 6,642 million reported for the same period in 2013.

In the Neuquina basin, capital expenditures during Q3 2014 focused mainly on the development of areas Loma Campana, Aguada Toledo-Sierra Barrosa, Rincón del Mangrullo, and Chachahuen. Development activities continue in Cuyana Basin, mainly in La Ventana area, while in Golfo San Jorge basin, most of the investments were focused in Cañadón de la Escondida, Los Perales and Pico Truncado, in the province of Santa Cruz and Manantiales Behr and El Trébol - Escalante in the province of Chubut.

As for exploration activities during Q3 2014, the Nequina, Golfo San Jorge and Cuyana basins were covered.

In the Cuyana Basin, activity focused in the La Ventana area.

In the Neuquina basin, exploratory activity targeted both conventional and unconventional objectives. Activity targeting conventional formations focused in deep horizons in the areas of Bajo del Piche, Cañadón Amarillo and Señal Cerro Bayo. Activity targeting unconventional formations focused in the areas of Bajo del Toro, Bajada de Añelo and La Ribera. Additionally, tight and shale objectives were evaluated in the Loma La Lata and Filo Morado blocks, respectively.

In the Golfo San Jorge basin, activities focused in the evaluation of deep horizons in the west flank of the Los Perales and Cañadón de la Escondida blocks and in the north flank of Manantiales Behr block.

As a result of the development activity during the period, three hydrocarbon discoveries were announced: (i) oil and natural gas in Santa Cruz province, Los Perales – Las Mesetas block, (ii) oil and natural gas in Neuquén province, Filo Morado block, and, (iii) oil in Mendoza province, Cañadón Amarillo block.

To date, 27 exploratory wells and 4 workovers have been completed this year.

 

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LOGO    Consolidated Results Q3 2014      

 

 

 

3.2 DOWNSTREAM

 

 

Q3

 

2013  

  

 

Q2

 

2014  

 

 

Q3

 

2014

 

 

Var.%

 

Q3 14/Q3 13  

  ( Unaudited Figures)   

 

Jan - Sep  

 

2013

 

 

Jan - Sep  

 

2014

 

 

Var.%

 

2014 / 2013  

1,534      2,921     3,864     151.9%  

 

Operating income

 

(Million ARS)

 

   3,954   9,238   133.6%
23,163      33,079     35,746     54.3%  

 

Revenues

 

(Million ARS)

 

   62,148   98,396   58.3%
4,188      4,087     4,297     2.6%  

 

Sales of refined products in domestic market (*)

 

(Km3)

 

   11,894   12,383   4.1%
355      375     284     -20.0%  

 

Exportation of refined products

 

(Km3)

 

   1,070   1,113   4.0%
208      216     232     11.5%  

 

Sales of petrochemical products in domestic market (**)  

 

(Ktn)

 

   583   633   8.6%
76      55     88     15.8%  

 

Exportation of petrochemical products (**)

 

(Ktn)

 

   232   200   -13.8%
292      292     299     2.4%  

 

Crude oil processed

 

(Kboed)

 

   275   289   5.1%
91%      91%     94%     2.4%  

 

Refinery utilization

 

(%)

 

   86%   90%   5.1%
1,276      1,833     2,312     81.2%  

 

Capital Expenditures

 

(Million ARS)

 

   2,797   5,144   83.9%
368      589     634     72.4%  

 

Depreciation

 

(Million ARS)

 

   967   1,770   83.0%
713      774     789     10.6%  

 

Average domestic market gasoline price

 

(USD/m3)

 

   715   755   5.7%
797      811     824     3.4%  

 

Average domestic market diesel price

 

(USD/m3)

 

   786   794   1.1%

(*) YSUR sales of LPG not included.

(**)Fertilizer sales not included

Operating income in YPF’s Downstream business segment for Q3 2014 was ARS 3,864 million, a 151.9% increase compared to ARS 1,534 million for Q3 2013.

Net sales increased by 54.3% compared to Q3 2013, primarily due to a higher average price in Argentine peso terms for gasoline and diesel, resulting in higher income of ARS 2,859 million and ARS 4,801 million, respectively. In addition, volumes of gasoline and diesel sold increased by 3.3% (an increase of ARS 224 million) and 5.4% (an increase of ARS 797 million) respectively, compared to Q3 2013. In turn, exports of flour and oils reached ARS 983 million (an increase of ARS 203 million) and jet fuel totaled ARS 855 million (an increase of ARS 282 million). Sales in the domestic and international markets for petrochemical products reached ARS 1,782 million (an increase of ARS 684 million), an increase principally due to higher volumes of products marketed (an increase of ARS 258 million) and higher prices in Argentine peso terms for the products sold (an increase of ARS 426 million). Fuel oil sales totaled ARS 1,735 million (an increase of ARS 372 million), due to the higher prices in Argentine peso terms (an increase of ARS 794 million) that offset lower volumes sold (a decrease of ARS 423 million).

 

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LOGO    Consolidated Results Q3 2014      

 

 

 

Costs increased by 47.4% (an increase of ARS 10,253 million) compared to the same period in 2013. This increase was due to (i) an increase in crude oil ARS 7,007 million, mainly as a consequence of price increases in Argentine peso terms, both for volumes transferred from YPF’s Upstream business segment and crude oil purchased from other producers, (ii) higher price and greater volumes of biofuel purchased of ARS 999 million and (iii) higher amortization of ARS 266 million. In addition, imports of diesel dropped by 7% from ARS 1,321 million down to ARS 1,224 million, as the 36% drop in volumes purchased was partially offset by the higher prices in Argentine peso terms.

With respect to the incident that occurred at the La Plata Refinery in Q2 2013, insurance compensation of ARS 505 million was received in Q3 2014 for lost profits affecting YPF’s business. This amount was recorded as a reduction to cost of sales based on the premise that lower volumes of refined products would have been imported if the refinery had not been damaged.

Crude oil processing volume was 299 Kbbld, 2.4% higher than Q3 2013 as a consequence of having greater availability of light crude oil. This represents a return to the same processing levels as before the incident affecting the La Plata Refinery on April 2, 2013.

Q3 2014 operating income for Downstream controlled companies, including mainly Opessa, YPF Inversora Energética (the controlling company of GASA and Metrogas), YPF Brazil, YPF Chile and YPF Energía Eléctrica (except the Ramos oil field) was ARS 237 million, compared to ARS 202 million for Q3 2013. It should be noted that this variation is included in the explanation mentioned above.

CAPEX

Capital expenditures in YPF’s Downstream business segment for Q3 2014 were ARS 2,312 million, which was 81.2% higher than Q3 2013. Multi-year projects and the engineering work for new units are under way. They are intended to increase gasoline and diesel production capacity as well as to improve the quality of such products. A coke unit and a new alkylation unit at the La Plata Refinery as well as the new gasoline hydrogenation units in La Plata and Mendoza were implemented, together with the work intended to improve YPF’s logistics facilities and projects addressing optimization of safety and environmental performance.

 

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LOGO    Consolidated Results Q3 2014      

 

 

 

3.3 CORPORATE AND OTHERS

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

Corporate operating income for Q3 2014 was a loss of ARS 471 million, ARS 291 million lower compared to a loss of ARS 180 million in Q3 2013. Increased costs were due to higher corporate salaries and social charges, higher IT contracted services and other corporate expenses, which offset better results from YPF’s controlled companies AESA and YPF Tecnología.

In turn, consolidation adjustments relating to eliminating results among business segments not transferred to third parties were ARS 188 million in Q3 2014 and ARS 66 million in Q3 2013.

3.4 RELATED COMPANIES

Q3 2014 results from related companies were positive ARS 38 million, an increase from negative ARS 56 million in Q3 2013. This change was mainly due to improved results from Profertil and Refinor.

4. LIQUIDITY AND SOURCES OF CAPITAL

During Q3 2014, cash flow generation reached ARS 18,249 million, 95.1% higher than the same period in 2013. This increase of ARS 8,893 million was mainly due to the increase of EBITDA of ARS 6,883 million and a reduction in working capital.

In turn, compared to the end of Q2 2014, YPF’s cash and equivalents increased by ARS 4,425 million to ARS 15,873 million by the end of Q3 2014, mainly due to higher cash flow generation and debt refinancing through the issuance of Notes in the local market. Net financial debt decreased by ARS 1,498 million (a decrease of 4.3%) to reach ARS 33,245 million by the end of Q3 2014.

The average cost of debt denominated in Argentine pesos by the end of Q3 2014 was 25.1%, while the average cost of debt denominated in U.S. dollars was 6.64%.

On July 10, 2014 dividends were paid at ARS 1.18 per share, in compliance with the decision made at the Ordinary General Shareholders’ Meeting held on April 30, 2014, which provided for distribution of dividends within a term not exceeding the end of the present period.

YPF Notes issued during Q3 2014 are detailed below:

 

 

YPF Note

 

 

 

Amount

 

 

 

Interest Rate

 

 

 

Maturity

 

 

Series XXXIV (Q3 2014)

  ARS 1,000 million   BADLAR + 0.10%   120 months

 

Series XXXV (Q3 2014)

 

  ARS 750 million

 

  BADLAR + 3.50%

 

  60 months

 

 

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LOGO    Consolidated Results Q3 2014      

 

 

 

 

 

LOGO

 

12


Table of Contents
LOGO    Consolidated Results Q3 2014      

 

 

 

5.1 CONSOLIDATED STATEMENT OF INCOME

YPF SOCIEDAD ANONIMA AND CONTROLLED COMPANIES

(Unaudited, figures expressed in millions of pesos)

 

Q3

2013

      Q2  
2014  
       

Q3  

2014  

       Var.%  
Q3 14/Q3 13  
                Jan - Jun 
2013 
       Jan - Sep 
2014 
       Var.%
9M 14/ 9M 13
                                  

  24,244  

      35,330             38,209          57.6%      Revenues      64,819      104,203      60.8%

  (17,875)  

      (25,427)             (26,365)          47.5%      Costs of sales      (48,386)      (74,808)      54.6%

 

   

 

     

 

    

 

    

 

    

 

    

 

    

 

6,369

    9,903           11,844          86.0%      Gross profit      16,433      29,395      78.9%

 

   

 

     

 

    

 

    

 

    

 

    

 

    

 

(1,986)

    (2,317)           (2,766)          39.3%      Selling expenses      (5,555)      (7,287)      31.2%

(654)

    (1,180)           (1,119)          71.1%      Administration expenses      (1,889)      (3,116)      65.0%

(279)

    (727)           (306)          9.7%      Exploration expenses      (525)      (1,230)      134.3%

(6)

    271           391          (6,616.7%)      Other expenses      (1,124)      616      (154.8%)

 

   

 

     

 

    

 

    

 

    

 

    

 

    

 

3,444

    5,950           8,044          133.6%      Operating income      7,340      18,378      150.4%

 

   

 

     

 

    

 

    

 

    

 

    

 

    

 

(56)

    26           38          167.9%      Income on investments in companies      77      61      (20.8%)
                    Financial income (expenses), net               

(521)

    102           (140)          (73.1%)      Gains (losses) on assets      (789)      (1,162)      47.3%

257

    318           480          86.8%      Interests      573      1,078      88.1%

(778)

    (216)           (620)          (20.3%)      Exchange differences      (1,362)      (2,240)      64.5%

1,061

    (1,184)           87          (91.8%)      (Losses) gains on liabilities      1,755      4,610      162.7%

(935)

    (1,943)           (1,793)          91.8%      Interests      (2,360)      (5,304)      124.7%

1,996

    759           1,880          (5.8%)      Exchange differences      4,115      9,914      140.9%

 

   

 

     

 

    

 

    

 

    

 

    

 

    

 

3,928

    4,894           8,029          104.4%      Net income before income tax      8,383      21,887      161.1%

 

   

 

     

 

    

 

    

 

    

 

    

 

    

 

(1,038)

    (2,891)           (2,931)          182.4%      Income tax      (3,041)      (5,961)      96.0%

(1,473)

    (460)           (1,879)          27.6%      Deferred income tax      (2,141)      (8,377)      291.3%

 

   

 

     

 

    

 

    

 

    

 

    

 

    

 

3

    17           7               Net income (loss) for noncontrolling interest      (6)      (70)     

 

   

 

     

 

    

 

    

 

    

 

    

 

    

 

1,414

    1,526           3,212          127.2%      Net income for the period (*)      3,207      7,619      137.6%

 

   

 

     

 

    

 

    

 

    

 

    

 

    

 

3.60

    3.89           8.19          127.1%      Earnings per share, basic and diluted (*)      8.16      19.43      138.0%

 

   

 

     

 

    

 

    

 

    

 

    

 

    

 

3,156

    1,405           2,515          (20.3%)      Other comprehensive Income      6,370      15,159      138.0%

 

   

 

     

 

    

 

    

 

    

 

    

 

    

 

4,573

    2,948           5,734          25.4%      Total comprehensive income for the period      9,571      22,708      137.3%

 

   

 

     

 

    

 

    

 

    

 

    

 

    

 

                                  

 

   

 

     

 

    

 

    

 

    

 

    

 

    

 

6,581

    10,464           13,464          104.6%      Adj. EBITDA (**)      15,271      32,288      111.4%

 

   

 

     

 

    

 

    

 

    

 

    

 

    

 

 

  Note:  

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

(*) Attributable to controlling shareholder.

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

 

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LOGO    Consolidated Results Q3 2014      

 

 

 

5.2 CONSOLIDATED BALANCE SHEET

YPF SOCIEDAD ANONIMA AND CONTROLLED COMPANIES

(Q2 2014 figures unaudited, figures expressed in millions of pesos)

 

      12/31/2013        09/30/2014   
  

 

 

    

 

 

 

Noncurrent Assets

     

Intangible assets

     2,446          4,855    

Fixed assets

     93,496          144,675    

Investments in companies

     2,124          2,552    

Deferred income tax assets

     34          97    

Other receivables and advances

     2,927          2,300    

Trade receivables

     54            
  

 

 

    

 

 

 

Total Non-current assets

     101,081          154,488    
  

 

 

    

 

 

 

Current Assets

     

Inventories

     9,881          12,361    

Other receivables and advances

     6,506          8,149    

Trade receivables

     7,414          12,507    

Assets available for sale

             1,634    

Cash and equivalents

     10,713          15,873    
  

 

 

    

 

 

 

Total current assets

     34,514          50,524    
  

 

 

    

 

 

 

Total assets

     135,595          205,012    
  

 

 

    

 

 

 

Shareholders’ equity

     

Shareholders’ contributions

     10,600          10,458    

Reserves and unnapropiated retained earnings

     37,416          59,730    

Noncontrolling interest

     224          154    
  

 

 

    

 

 

 

Total Shareholders’ equity

     48,240          70,342    
  

 

 

    

 

 

 

Noncurrent Liabilities

     

Provisions

     19,172          24,390    

Deferred income tax liabilities

     11,459          21,285    

Other taxes payable

     362          315    

Salaries and social security

               

Loans

     23,076          36,693    

Accounts payable

     470          614    
  

 

 

    

 

 

 

Total Noncurrent Liabilities

     54,547          83,297    
  

 

 

    

 

 

 

Current Liabilities

     

Provisions

     1,396          1,622    

Income tax liability

     122          3,525    

Other taxes payable

     1,045          4,185    

Salaries and social security

     1,119          1,606    

Loans

     8,814          12,425    

Accounts payable

     20,312          28,010    

Dividends payable

               
  

 

 

    

 

 

 

Total Current Liabilities

     32,808          51,373    
  

 

 

    

 

 

 

Total Liabilities

     87,355          134,670    
  

 

 

    

 

 

 

Total Liabilities and Shareholders’ Equity

     135,595          205,012    
  

 

 

    

 

 

 

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

 

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LOGO    Consolidated Results Q3 2014      

 

 

 

5.3 CONSOLIDATED STATEMENT OF CASH FLOW

YPF SOCIEDAD ANONIMA AND CONTROLLED COMPANIES

(Unaudited, figures expressed in millions of pesos)

 

Q3
2013
       Q2
2014
      

Q3

2014

                 Jan- Sep  
2013  
       Jan -Sep  
2014  
               

Cash Flows from operating activities

         

1,417

     1,543          3,219          

Net income

     3,201      7,549

56

     (26)          (38)          

Income from investments in companies

     (77)      (61)

3,088

     4,414          5,343          

Depreciation of fixed assets

     7,789      13,660

49

     100          77          

Amortization of intangible assets

     142      250

(57)

     (53)          (145)          

Acquisition of own shares

     (93)      (198)

567

     788          868          

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

     1,658      2,671

455

     939          922          

Net increase in provisions

     2,281      2,465

(218)

     558          1,112          

Interest, exchange differences and other

     (37)      1,813

51

     14          28          

Stock compensation plan

     73      56

-

     (386)          (505)          

Accrued insurance

     -      (1,632)
                 

Changes in assets and liabilities:

           

(1,549)

     (1,447)      (707)      

Trade receivables

     (4,032)      (4,150)

837

     2,314      (64)      

Other receivables and liabilities

     (204)      (802)

(66)

     (381)      (384)      

Inventories

     (1,480)      (2,425)

3,134

     1,484      1,323      

Accounts payable

     4,625      1,663

(128)

     (674)      2,082      

Other Taxes payable

     118      3,006

205

     208      419      

Salaries and Social Securities

     77      431

(242)

     (410)      (426)      

Decrease in provisions from payments

     (516)      (1,580)

15

     215      18      

Dividends from investments in companies

     136      233

-

     591      1,098      

Insurance charge for loss of profit

     -      1,689

1,742

     1,639      4,009      

Net charge of income tax payment

     2,718      11,756

2,511

     3,351      4,810      

Income tax

     5,182      14,338

(769)

     (1,712)      (801)      

Income tax payments

     (2,464)      (2,582)

 

    

 

    

 

          

 

    

 

9,356

     11,430      18,249      

Net cash flows provided by operating activities

     16,379      36,394

 

    

 

    

 

          

 

    

 

               

Cash flows from investing activities

         
               

Payments for investments:

         

(7,466)

     (10,335)      (13,213)      

Acquisitions of fixed assets and Intangible assets

     (18,203)      (35,365)

(11)

     -      (9)      

Capital contributions in non-current investments

     (11)      (94)

-

     180      -      

Liabilities of sales of fixed assets

     -      1,711

-

     (186)      (357)      

Acquisitions of participation in UTEs

     -      (869)

-

     (1)      -      

Acquisition of subsidiaries net of adcquiered funds

     107      (6,103)

-

     1,210      -      

Insurance charge for material damages

     -      1,818

 

    

 

    

 

          

 

    

 

 

(7,477)

 

    

 

(9,132)

 

    

 

(13,579)

 

     

 

Net cash flows used in investing activities

 

    

 

(18,107)

 

    

 

(38,902)

 

 

    

 

    

 

          

 

    

 

               

Cash flows from financing activities

         
                         

(1,311)

     (3,839)      (3,030)      

Payment of loans

     (4,892)      (9,012)

(732)

     (1,360)      (1,114)      

Payment of interests

     (1,833)      (3,413)

2,219

     10,949      4,141      

Proceeds from loans

     10,846      19,342

(326)

     -      (464)      

Payments of dividends

     (326)      (464)

 

    

 

    

 

          

 

    

 

 

(150)

 

    

 

5,750

 

    

 

(467)

 

     

 

Net cash flows provided by financing activities

 

    

 

3,795

 

    

 

6,453

 

 

    

 

    

 

          

 

    

 

 

34

 

    

 

291

 

    

 

 

222

 

     

 

Effect of changes in exchange rates on cash and equivalents

 

    

 

89

 

    

 

1,215

 

 

    

 

    

 

          

 

    

 

1,763

     8,339      4,425      

Increase (Decrease) in Cash and Equivalents

     2,156      5,160

 

    

 

    

 

          

 

    

 

5,140

     3,109      11,448      

Cash and equivalents at the beginning of the period

     4,747      10,713

6,903

     11,448      15,873      

Cash and equivalents at the end of the period

     6,903      15,873

 

    

 

    

 

          

 

    

 

 

1,763

 

    

 

8,339

 

    

 

4,425

 

     

 

Increase (Decrease) in Cash and Equivalents

 

    

 

2,156

 

    

 

5,160

 

 

    

 

    

 

          

 

    

 

               

COMPONENTS OF CASH AND EQUIVALENT AT THE END OF THE PERIOD

         
                         

883

     6,202      6,567      

Cash

     883      6,567

6,020

     5,246      9,306      

Other Financial Assets

     6,020      9,306

 

    

 

    

 

          

 

    

 

6,903

     11,448      15,873      

TOTAL CASH AND EQUIVALENTS AT THE END OF THE PERIOD

     6,903      15,873

 

    

 

    

 

          

 

    

 

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

 

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LOGO    Consolidated Results Q3 2014      

 

 

 

5.4 CONSOLIDATED BUSINESS SEGMENT INFORMATION

(Unaudited, figures expressed in millions of pesos)

 

Q3 2014    Upstream      Downstream      Corporate and
Other
     Consolidation
Adjustments
     Total    

Revenues

   2,607      35,459      143      -      38,209        

Revenues from intersegment sales

   16,750      287      1,476      -18,513      -        

 

Revenues

   19,357      35,746      1,619      -18,513      38,209        

 

Operating Income (loss)

   4,463      3,864      -471      188      8,044        

Investments in companies

   -3      41      -      -      38        

Depreciation of fixed assets

   4,618      634      91      -      5,343        

Acquisitions of fixed assets

   11,120      2,312      344      -      13,776        

Assets

   117,737      67,692      22,279      -2,696      205,012        
                      
Q3 2013    Upstream      Downstream      Corporate and
Other
     Consolidation
Adjustments
     Total    

Revenues

   1,162      22,893      189      -      24,244        

Revenues from intersegment sales

   9,801      270      563      -10,634      -        

 

Revenues

   10,963      23,163      752      -10,634      24,244        

 

Operating Income (loss)

   2,135      1,534      -291      66      3,444        

Investments in companies

   -11      -45      -      -      -56        

Depreciation of fixed assets

   2,675      368      45      -      3,088        

Acquisitions of fixed assets

   6,766      1,276      110      -      8,152        

Assets

   58,485      43,505      10,568      -1,288      111,270        

 

16


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LOGO    Consolidated Results Q3 2014      

 

 

 

5.5 MAIN DOLLAR DENOMINATED FINANCIAL MAGNITUDES (unaudited figures)

 

Million USD       2013                 2014                 2014             Var        2013         2014         Var 
      Q3                 Q2                 Q3             Q3 14 / Q3 13        Jan - Sep (*)         Jan - Sep         9M 14 / 9M 13 

INCOME STATEMENT

                         

Revenues

  4,355     4,413     4,632     6.4%     12,319     13,113     6.4%

Costs of sales

  -3,211     -3,176     -3,196     -0.4%     -9,196     -9,414     2.4%

 

   

 

   

 

   

 

   

 

   

 

   

 

Gross profit

  1,144     1,237     1,436     25.5%     3,123     3,699     18.4%

Selling expenses

  -357     -289     -335     -6.0%     -1,056     -917     -13.1%

Administration expenses

  -117     -147     -136     15.5%     -359     -392     9.2%

Exploration expenses

  -50     -91     -37     -26.0%     -100     -155     55.1%

Other expenses

  -1     34     47     -4498.4%     -51     78     -251.6%

 

   

 

   

 

   

 

   

 

   

 

   

 

Operating income

  619     743     975     57.6%     1,557     2,313     48.5%

Depreciation of fixed assets

  555     551     648     16.8%     1,480     1,719     16.1%

Amortization of intangible assets

  9     12     9     6.1%     27     31     16.6%

 

   

 

   

 

   

 

   

 

   

 

   

 

Adj. EBITDA (**)

  1,182     1,307     1,632     38.1%     3,065     4,063     32.6%
                         

UPSTREAM

                         

Revenues

  1,969     2,084     2,347     19.2%     5,706     6,413     12.4%

Operating income

  383     413     541     41.1%     1,036     1,357     31.0%

Depreciation

  480     468     560     16.5%     1,271     1,468     15.5%

Capital expenditures

  1,193     1,083     1,348     13.0%     3,005     3,573     18.9%
                         

DOWNSTREAM

                         

Revenues

  4,161     4,132     4,334     4.2%     11,811     12,382     4.8%

Operating income

  276     365     468     70.0%     751     1,162     54.7%

Depreciation

  66     74     77     16.3%     184     223     21.2%

Capital expenditures

  229     229     280     22.3%     532     647     21.8%
                         

CORPORATE AND OTHER

                         

Operating income

  -52     -46     -57     9.2%     -205     -150     -27.1%

Capital expenditures

  20     45     42     111.1%     40     104     156.5%
                         

CONSOLIDATION ADJUSTMENTS

                         

Operating income

  12     11     23     92.3%     -24     -57     133.3%
                         

Average exchange rate for the period

  5.57     8.01     8.25         5.26     7.95    

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

(*) For these periods, results do not include the impact of the provision for claims related to the AES Uruguaiana Emprendimientos S.A. (AESU) and Transportadora de Gas del Mercosur S.A. (TGM) arbitrations.

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

 

17


Table of Contents
LOGO    Consolidated Results Q3 2014      

 

 

 

5.6 MAIN PHYSICAL MAGNITUDES (Unaudited figures)

 

                           2013                                    2014              
     Unit                                                                
          

Q1      

 

     Q2            Q3            Q4            Cum. 2013        Q1            Q2            Q3            Cum. 2014  

Production

                                                                                

Crude oil production

  Kbbl         20,365          20,770          21,625          22,019         84,780          21,742          21,918          22,634       66,294

NGL production

  Kbbl        4,918         4,162         3,471         5,033         17,584         4,858         3,751         4,099       12,708

Gas production

  Mm3        2,824         3,001         3,272         3,262         12,359         3,350         3,960         4,131       11,442

Total production

  Kbpe        43,045         43,806         45,675         47,568         180,094         47,672         50,577         52,714       150,963

 

Henry Hub

  USD/Mmbtu        3.48         4.09         3.58         3.60         3.69         4.94         4.67         4.06       4.55

Brent

  USD/bbl        112.48         102.58         110.27         109.21         108.63         108.17         109.70         101.82       106.56

Sales

                                                                                

Sales of petroleum products

                                  

Domestic market

                                  

Gasoline

  Km3        1,159         1,060         1,121         1,206         4,545         1,229         1,126         1,158       3,513

Diesel

  Km3        1,946         2,057         2,048         2,047         8,098         1,920         2,043         2,160       6,122

Jet fuel and kerosene

  Km3        108         111         112         118         449         124         108         116       348

Fuel Oil

  Km3        129         100         293         239         760         294         297         257       848

LPG

  Km3        168         220         265         144         796         146         210         245       601

LPG sold by YSUR

         -         -         -         -         -         5         26         30       61

Others (*)

  Km3        379         270         350         340         1,338         286         304         361       951

Total domestic market

  Km3        3,889         3,819         4,188         4,094         15,988         4,004         4,113         4,327       12,444

Export market

                                  

Petrochemical naphtha

  Km3        0         0         0         0         0         0         0         0       0

Jet fuel and kerosene

  Km3        131         121         127         126         505         129         116         126       372

LPG

  Km3        123         36         30         104         293         124         35         24       183

Bunker (Diesel and Fuel Oil)

  Km3        186         98         189         191         664         194         205         128       526

Others (*)

  Km3        10         10         9         11         39         8         18         5       31

Total export market

  Km3        450         265         355         432         1,502         455         375         284       1,113

Total sales of petroleum products

  Km3        4,339         4,084         4,542         4,526         17,490         4,459         4,488         4,610       13,557

Sales of petrochemical products

                                  

Domestic market

                                  

Fertilizers

  Ktn        24         27         68         105         224         32         39         76       147

Methanol

  Ktn        49         57         64         66         236         47         73         103       223

Others

  Ktn        130         138         143         132         543         138         143         129       410

Total domestic market

  Ktn        203         222         276         303         1,003         217         255         308       780

Export market

                                  

Methanol

  Ktn        8         22         1         10         41         33         22         21       76

Others

  Ktn        62         64         75         39         240         24         33         67       124

Total export market

  Ktn        70         86         76         49         281         57         55         88       200

Total sales of petrochemical products

  Ktn        273         308         352         352         1,284         274         310         396       980

Sales of other products

                                  

Grain, flours and oils

                                  

Domestic market

  Ktn        39         30         24         31         124         20         22         21       63

Export market

  Ktn        87         239         284         159         769         85         251         292       628

Total Grain, flours and oils

  Ktn        126         269         308         190         893         105         273         313       691

Main products imported

                                  

Gasolines and Jet Fuel

  Km3        94         198         0         0         292         179         94         0       274

Diesel

  Km3        183         420         296         351         1,250         473         275         191       939

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

 

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LOGO    Consolidated Results Q3 2014      

 

 

 

This document contains statements that YPF believes constitute forward-looking statements within the meaning of the US Private Securities Litigation Reform Act of 1995.

These forward-looking statements may include statements regarding the intent, belief, plans, current expectations or objectives as of the date hereof of YPF and its management, including statements with respect to trends affecting YPF’s future financial condition, financial, operating, reserve replacement and other ratios, results of operations, business strategy, geographic concentration, business concentration, production and marketed volumes and reserves, as well as YPF’s plans, expectations or objectives with respect to future capital expenditures, investments, expansion and other projects, exploration activities, ownership interests, divestments, cost savings and dividend payout policies. These forward-looking statements may also include assumptions regarding future economic and other conditions, such as the future price of petroleum and petroleum products, refining and marketing margins and exchange rates. These statements are not guarantees of future performance, prices, margins, exchange rates or other events and are subject to material risks, uncertainties, changes in circumstances and other factors that may be beyond YPF’s control or may be difficult to predict.

YPF’s actual future financial condition, financial, operating, reserve replacement and other ratios, results of operations, business strategy, geographic concentration, business concentration, production and marketed volumes, reserves, capital expenditures, investments, expansion and other projects, exploration activities, ownership interests, divestments, cost savings and dividend payout policies, as well as actual future economic and other conditions, such as the future price of petroleum and petroleum products, refining margins and exchange rates, could differ materially from those expressed or implied in any such forward-looking statements. Important factors that could cause such differences include, but are not limited to fluctuations in the price of petroleum and petroleum products, supply and demand levels, currency fluctuations, exploration, drilling and production results, changes in reserves estimates, success in partnering with third parties, loss of market share, industry competition, environmental risks, physical risks, the risks of doing business in developing countries, legislative, tax, legal and regulatory developments, economic and financial market conditions in various countries and regions, political risks, wars and acts of terrorism, natural disasters, project delays or advancements and lack of approvals, as well as those factors described in the filings made by YPF and its affiliates before the Comisión Nacional de Valores in Argentina and with the U.S. Securities and Exchange Commission, in particular, those described in “Item 3. Key Information—Risk Factors” and “Item 5. Operating and Financial Review and Prospects” in YPF’s Annual Report on Form 20-F for the fiscal year ended December 31, 2013 filed with the Securities and Exchange Commission. In light of the foregoing, the forward-looking statements included in this document may not occur.

Except as required by law, YPF does not undertake to publicly update or revise these forward-looking statements even if experience or future changes make it clear that the projected performance, conditions or events expressed or implied therein will not be realized.

These materials do not constitute an offer for sale of YPF S.A. bonds, shares or ADRs in the United States or elsewhere.

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

 

Investors Relations

E-mail: inversoresypf@ypf.com

Website: ir.ypf.com

Macacha Güemes 515

C1106BKK Buenos Aires (Argentina)

Phone: 54 11 5441 1215

Fax: 54 11 5441 2113

 

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SIGNATURE

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

 

    YPF Sociedad Anónima  
Date: November 5, 2014     By:  

     /s/ Alejandro Cherñacov

 
    Name:     Alejandro Cherñacov  
    Title:     Market Relations Officer