Form 6-K

 

 

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

 

 

 


YPF Sociedád Anonima

TABLE OF CONTENTS

 

ITEM

 

1 Translation of Q3 2014 Earnings Presentation.

 

2


3rd Quarter 2014
Earnings Webcast
November 6, 2014


2
Disclaimer
Safe harbor statement under the US Private Securities Litigation Reform Act of 1995.
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.


3
Contents
Q3 2014 Results
Financial Situation
Summary
1
2
3


4
Revenues of ARS 38.2 bn (+58% vs. Q3 2013)
Crude oil production 246.0 Kbbl/d (+4.6%)
Natural gas production 44.9 Mm3/d (+26.1%)
Crude processed 299 Kbbl/d (+2.4%)
Operating Income was ARS 8 bn (+134%)
Net Income was ARS 3.2 bn (+127%)
Total Capex
was ARS 13.8 bn (+72%)
Q3 2014 Results Highlights
Adj. EBITDA
(1)
reached ARS 13.5 bn (+105%)
Operating Cash Flow topped 18.2 bn (+95%)
(1)
See description of Adj. EBITDA in footnote (2) on page 5
Solid demand, market share:
gasoline 58% and diesel 59%


5
Volume and sales growth resulted in margin expansion.
Adj. EBITDA grew by 38% and Operating Income by 58% y-o-y.
Revenues
(1)
(MUSD)
Operating Income
(1)
(MUSD)
Adj. EBITDA
(1) (2) 
(MUSD)
(1)
YPF financial statement values in IFRS converted to USD using average FX of 5.6 and 8.3 for Q3 2013 and Q3 2014, respectively.
(2)
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.
+6%
+58%
+38%
Q3 2014 Results Expressed in US Dollars
619
975
Q3 2013
Q3 2014
1,182
1,632
Q3 2013
Q3 2014
4,355
4,632
Q3 2013
Q3 2014


In millions of ARS
Q3 2014 Operating Income
Higher revenues fueled Operating Income increase of 134% in Q3 2014.
6
3,444
8,044
13,965
397
-3,830
-2,477
-2,255
-1,173
-27
Q3 2013
Revenues
Others
expenses
Other costs
of sales
Purchases
DD&A
SG&A
Exploration
expenses
Q3 2014


7
Q3 2014 Operating Income
Continued solid performance across both business segments.
In millions of ARS
3,444
8,044
2,330
2,328
-58
Q3 2013
Downstream
Upstream
Administration & Others
Q3 2014


8
Q3 2014 Upstream Results
Upstream Operating Income reached ARS 4.5 bn (+109%) due to higher revenues driven by the
increase in production and prices.
In million of ARS
(1)
Includes ARS 415 millions of other expense (ARS 359 million derived from the sale to Sinopec of a 30% stake in the concession extension in La Ventana), ARS -27 million of
Exploration Expenses, ARS -17 million of SG&A and ARS -3 million of Purchases.
1
2,135
4,463
8,394
368
-3,515
-1,943
-976
Q3 2013
Revenues
Other expenses
Production costs
DD&A
Royalties
Q3 2014


9
Crude oil production
(1)
(Kbbl/d)
Natural gas production
(1)
(Mm³/d)
Q3 2014 Upstream Results
Production
Total production
(1)
(Kboe/d)
+4.6%
+26.1%
+15.4%
Total y-o-y production growth of 15.4%: 4.6% in crude oil and 26.1% in natural gas
(1)
Q3 2014 includes production of YSUR and Puesto Hernández acquired in Q1 2014.
496.5
573.0
Q3 2013
Q3 2014
36
44.9
Q3 2013
Q3 2014
235.1
246.0
Q3 2013
Q3 2014


10
Q3 2014 Upstream Results
Production
Crude oil production
(kbbl/d)
Natural gas production
(Mm³/d)
Continuous growth in tight gas and shale oil.
Tight gas production is more than 10% of total natural gas production.
YSUR + Puesto Hernández
Tight + Shale
Conventional
226.3
228.2
235.1
239.3
241.6
240.9
31.4
33.0
35.6
35.5
37.2
43.5
246.0
1.3
6.0
5.9
0.7
0.7
0.9
2.3
3.1
3.8
5.5
Q1 13
Q2 13
Q3 13
Q4 13
Q1 14
Q2 14
Q3 14
6.0
13.6
13.3
4.2
5.4
7.9
9.5
6.4
6.8
9.5
Q1 13
Q2 13
Q3 13
Q4 13
Q1 14
Q2 14
Q3 14
44.9


11
Q3 2014 Upstream Results
Tight gas update
Loma La Lata (121 km
29,900 acres)
Objective: Lajas formation
Rincón del Mangrullo (183 km
-
45,200 acres)
Objective: Mulichinco formation
Invested over USD 540 million
69 wells drilled
56 producing wells
4 active drilling rigs
8 / 10 stage fracs per well
Depth (TVD):  2,600 / 2,800 m
Invested over USD 173 million
29 wells drilled
28 producing wells
3 active drilling rigs
2 stage fracs per well
Depth (TVD):  1,600 / 1,800 m
Natural gas production (Mm3/d)
Natural gas production (Mm3/d)
(1)
Refers
to
Lajas
prospective
area
called
“Segmento
5”
in
Loma
La
Lata
block.
0.7
0.6
0.6
0.6
0.6
0.6
0.9
1.5
2.2
2.4
2.6
2.7
2.9
2.6
3.5
3.8
3.9
4.2
4.1
0.04
0.04
0.05
0.09
0.16
0.18
0.69
0.90
1.01
2
1
2


12
Q3 2014 Upstream Results
Shale Update
Good progress in the shale gas pilot in El Orejano, with continuous drilling activity.
Horizontal and vertical wells under evaluation showing good behavior.
Two drilling rigs exploring and delineating new unconventional blocks during Q3 2014.
Unconventional Center of Excellence and YTEC continued progress in understanding the subsurface.
After only 2 years, Loma Campana has become the 2nd largest oil producing field in Argentina.
Encouraging productivity in the latest horizontal shale oil wells entering production in Loma Campana.
Promising
reduction
in
horizontal
well
drilling
time
through
the
application
of
latest
technologies.
Vertical shale oil wells drilled in Loma Campana´s sweet spot are producing at or above forecasted type
well curve, with decreasing drilling & completion costs.
Total
Gross
Production
(Kboe/d)
5.9
7.9
9.8
13.3
17.3
18.6
23.2
31.9
Q4 12
Q1 13
Q2 13
Q3 13
Q4 13
Q1 14
Q2 14
Q3 14


13
Q3 2014 Downstream Results
Downstream Operating Income grew 152% to ARS 3.9 bn in Q3 2014, due to higher revenues
and lower increase in purchases.
In millions of ARS
1,534
3,864
12,583
-7,981
-1,086
-843
-266
-77
Q3 2013
Revenues
Purchases
Production
costs
SG&A
DD&A
Other
expenses
Q3 2014


14
2.4%
Crude processed
(kbbl/d)
Domestic sales of refined products
(Km
3
)
+2.6%
Q3 2014 Downstream Results -
Sales
+3.3%
+5.4%
Refinery utilization reached 94% helped by lighter crude coming from unconventional production.
Imported volumes of diesel dropped 36% against Q3 2013.
4,188
4,297
Q3 2013
Q3 2014
Others
LPG
Fuel Oil
JP1
Gasoline
Diesel
292
299
Q3 2013
Q3 2014


15
Q3 2014 Refined Products Demand
Monthly Gasoline and Diesel Sales
(1)
(Km3)
Brand recognition; solid demand based on slight market share growth.
Gasoline and Diesel Market Share
(1)
(Km3)
(1)
Source: Argentine Secretariat of Energy (SEN)
2014
2013
2012
2012
2013
2014
800
850
900
950
1,000
1,050
1,100
January
February
March
April
May
June
July
August
September
January
February
March
April
May
June
July
August
September


16
Q3 2014 Capex
(1)
(1)
Economic capex figures as expressed in Note 2.g of Q3 2014 YPF financial statements.
(2)
Active rigs at end of period.
+71.6%
In millions of ARS
13,776
Downstream
Upstream
Progress of the new coke unit
at the La Plata Refinery and
other multi-year projects
Neuquina
basin:
Loma
Campana,
Rincón del Mangrullo, Aguada
Toledo and Chachahuen
Golfo San Jorge basin:
Manantiales Behr, El Trébol and
Los Perales
Drilling
rigs
(2)
+200%
25
36
42
46
52
58
63
65
69
73
75
8,028
Upstream
Downstream
Others
Q3 2013
Q3 2014


Contents
Q3 2014 Results
Financial Situation
Summary
1
2
3
17


18
(1)
Effective spendings in fixed asset acquisitions during the quarter.
(2)
Includes effect of changes in exchange rates.
(3)
Net debt to Adj. EBITDA calculated in USD, Net debt at period end FX of 8.4 and Adj. EBITDA LTM at average LTM of 7.5; 3,967 / 5,273 = 0.75.
Q3 2014 Cash Flow From Operations
Self financed Q3 2014 capex; Cash Flow From Operations grew ARS 9 bn against Q3 2013.
Sound
capital
structure;
Net
Debt
/
Adj.
EBITDA
LTM
down
to
0.75x
(3)
.
+95%
Consolidated statement of cash flows
(in million of ARS)
Cash flow from operations
(in million of ARS)
9,356
18,249
Q3 2013
Q3 2014
11,448
15,873
18,249
-13,579
-245
Cash at the
beginning of Q3 2014
Cashflow from
operations
Capex
(1)
Net financing
(2)
Cash at the end of
Q3 2014


Peso denominated debt 32%
Financial debt amortization schedule
(1) (2)
(MUSD)
Average interest rates of 6.64%
in USD and 25.10%
in ARS
(1)
As
of
September
30,
2014,
does
not
include
consolidated
companies
/
(2)
Converted
to
USD
using
September
30,
2014
FX
of
8.4
Cash position covers debt maturities for next 18-months.
Continued to extend average life of debt.
Financial
Situation
Update
1
Trade facilities
Term Loans
Average life of almost 4
years
Senior Bonds
and Notes
1,751
Cash
Q4 2014
2015
2016
2017
2018
2019
2020+
10%
11%
79%
19


Contents
Q3 2014 Results
Financial Situation
Summary
1
2
3
20


Summary
Continued to improve results and expand margins
Increased oil & gas production by 15.4%, with an impressive 26%
growth
in
natural
gas;
shale
and
tight
already
represent
8%
of
total
hydrocarbon production
Announced 3
rd
shale pilot project with Petronas
Strong
brand
recognition
allowed
an
increase
in
demand
based
on
market share growth; lowering imports
Free
Cash
Flow
positive
in
Q3
2014,
increased
cash
and
lowered leverage ratios to 0.75x Net Debt to Adj. EBITDA
21


3
rd
Quarter 2014 Earnings Webcast
Questions and Answers


3rd Quarter 2014
Earnings Webcast
November 6, 2014


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 6, 2014     By:  

/s/ Alejandro Cherñacov

   

Name:

Title:

 

Alejandro Cherñacov

Market Relations Officer