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MarketScreener Homepage  >  Equities  >  Buenos Aires Stock Exchange  >  YPF Sociedad Anónima    YPFD   ARP9897X1319

YPF SOCIEDAD ANÓNIMA

(YPFD)
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YPF Sociedad Anónima : Financial Statements 06-30-2020

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08/18/2020 | 09:41am EDT

YPF SOCIEDAD ANONIMA

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS AS OF JUNE 30, 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 JUNE 30, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

CONTENT

NoteDescription

Glossary of terms ...................................................................................................................................................

Legal Information....................................................................................................................................................

Condensed interim consolidated statements of financial position ...................................................................

Condensed interim consolidated statements of comprehensive income .......................................................

Condensed interim consolidated statements of changes in shareholders' equity.........................................

Condensed interim consolidated statements of cash flow................................................................................

Notes to the condensed interim consolidated financial statements:

  1. General information, structure and organization of the business of the Group .............................................
  2. Basis of preparation of the condensed interim consolidated financial statements........................................
  3. Seasonality of operations ......................................................................................................................................
  4. Acquisitions and dispositions................................................................................................................................
  5. Financial risk management ...................................................................................................................................
  6. Segment information ..............................................................................................................................................
  7. Financial instruments by category........................................................................................................................
  8. Intangible assets.....................................................................................................................................................
  9. Property, plant and equipment .............................................................................................................................
  1. Right-of-useassets ................................................................................................................................................
  2. Investments in associates and joint ventures .....................................................................................................
  3. Inventories ...............................................................................................................................................................
  4. Other receivables ...................................................................................................................................................
  5. Trade receivables ...................................................................................................................................................
  6. Cash and cash equivalents ...................................................................................................................................
  7. Provisions ................................................................................................................................................................
  8. Income Tax..............................................................................................................................................................
  9. Taxes payable.........................................................................................................................................................
  10. Salaries and social security...................................................................................................................................
  11. Lease liabilities........................................................................................................................................................
  12. Loans........................................................................................................................................................................
  13. Other liabilities ........................................................................................................................................................
  14. Accounts payable ...................................................................................................................................................
  15. Revenues.................................................................................................................................................................
  16. Costs ........................................................................................................................................................................
  17. Expenses by nature ...............................................................................................................................................
  18. Other net operating results....................................................................................................................................
  19. Net financial results ................................................................................................................................................
  20. Investments in joint operations .............................................................................................................................
  21. Shareholders' equity ..............................................................................................................................................
  22. Earnings per share .................................................................................................................................................
  23. Issues related to Maxus Entities...........................................................................................................................
  24. Contingent assets and contingent liabilities........................................................................................................
  25. Contractual commitments......................................................................................................................................
  26. Main regulations and others..................................................................................................................................
  27. Balances and transactions with related parties ..................................................................................................
  28. Employee benefit plans and similar obligations .................................................................................................
  29. Assets and liabilities in currencies other than the Peso....................................................................................
  30. Subsequent events.................................................................................................................................................

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1

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 JUNE 30, 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

ANSES

National Administration of Social Security

ASC

Accounting Standards Codification

Associate

Company over which YPF has significant influence as provided for in IAS 28

BCRA

Central Bank of the Argentine Republic

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

2

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 JUNE 30, 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

3

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 JUNE 30, 2020 AND DECEMBER 31, 2019 (UNAUDITED)

(Amounts expressed in millions of Pesos)

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

June 30,

December 31,

Notes

2020

2019

ASSETS

Noncurrent Assets

Intangible assets................................................................................................

8

42,868

37,179

Property, plant and equipment ...........................................................................

9

1,144,901

1,069,011

Right-of-use assets............................................................................................

10

62,330

61,391

Investments in associates and joint ventures .....................................................

11

81,190

67,590

Deferred income tax assets, net ........................................................................

17

2,332

1,583

Other receivables ..............................................................................................

13

11,305

11,789

Trade receivables ..............................................................................................

14

5,258

15,325

Total noncurrent assets ..................................................................................

1,350,184

1,263,868

Current Assets

Inventories.........................................................................................................

12

101,284

80,479

Contract assets..................................................................................................

24

442

203

Other receivables ..............................................................................................

13

32,543

36,192

Trade receivables ..............................................................................................

14

100,978

118,077

Investment in financial assets ............................................................................

7

8,119

8,370

Cash and cash equivalents................................................................................

15

83,541

66,100

Total current assets.........................................................................................

326,907

309,421

TOTAL ASSETS ...............................................................................................

1,677,091

1,573,289

SHAREHOLDERS' EQUITY

Shareholders' contributions ...............................................................................

10,861

10,572

Reserves, other comprehensive income and retained earnings .........................

551,836

531,977

Shareholders' equity attributable to shareholders of the parent company

562,697

542,549

Non-controlling interest......................................................................................

6,012

5,550

TOTAL SHAREHOLDERS' EQUITY.................................................................

568,709

548,099

LIABILITIES

Noncurrent Liabilities

Provisions..........................................................................................................

16

172,804

144,768

Deferred income tax liabilities, net .....................................................................

17

96,294

97,231

Contract liabilities ..............................................................................................

24

-

294

Income tax liability .............................................................................................

17

2,917

3,387

Taxes payable ...................................................................................................

18

239

1,428

Lease liabilities ..................................................................................................

20

41,511

40,391

Loans ................................................................................................................

21

415,576

419,651

Other liabilities ...................................................................................................

22

757

703

Accounts payable ..............................................................................................

23

2,467

2,465

Total noncurrent liabilities ..............................................................................

732,565

710,318

Current Liabilities

Provisions..........................................................................................................

16

6,250

5,460

Contract liabilities ..............................................................................................

24

6,085

7,404

Income tax liability .............................................................................................

17

1,344

1,964

Taxes payable ...................................................................................................

18

13,851

11,437

Salaries and social security ...............................................................................

19

9,300

10,204

Lease liabilities ..................................................................................................

20

24,925

21,389

Loans ................................................................................................................

21

195,824

107,109

Other liabilities ...................................................................................................

22

1,495

1,310

Accounts payable ..............................................................................................

23

116,743

148,595

Total current liabilities ....................................................................................

375,817

314,872

TOTAL LIABILITIES .........................................................................................

1,108,382

1,025,190

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY ...................................

1,677,091

1,573,289

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

GUILLERMO EMILIO NIELSEN

President

4

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 STATEMENTS OF COMPREHENSIVE INCOME

FOR THE SIX-MONTH AND THREE-MONTH PERIOD ENDED JUNE 30, 2020 AND 2019 (UNAUDITED)

(Amounts expressed in millions of Pesos, except per share information, expressed in Pesos)

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the six-month period

For the three-month

ended June 30,

period ended June 30,

Notes

2020

2019

2020

2019

Net income

Revenues .......................................................................................

24

308,228

291,236

133,558

160,329

Costs ..............................................................................................

25

(292,736)

(238,965)

(146,822)

(134,211)

Gross profit / (loss).......................................................................

15,492

52,271

(13,264)

26,118

Selling expenses ............................................................................

26

(37,044)

(21,037)

(23,168)

(11,217)

Administrative expenses .................................................................

26

(14,132)

(10,524)

(7,383)

(5,756)

Exploration expenses .....................................................................

26

(856)

(2,577)

(140)

(1,056)

Impairment of property, plant and equipment ..................................

9

(57,429)

-

(57,429)

-

Other net operating results .............................................................

27

15,323

(334)

7,940

(921)

Operating (loss) / profit ................................................................

(78,646)

17,799

(93,444)

7,168

Income from equity interests in associates and joint ventures .........

11

3,720

3,514

2,300

1,955

Financial income.............................................................................

28

51,623

19,802

30,817

(5,541)

Financial loss..................................................................................

28

(67,814)

(30,663)

(37,680)

(10,666)

Other financial results .....................................................................

28

10,782

4,442

12,075

1,765

Net financial results ........................................................................

28

(5,409)

(6,419)

5,212

(14,442)

Net (loss) / profit before income tax ............................................

(80,335)

14,894

(85,932)

(5,319)

Income tax......................................................................................

17

1,638

(25,374)

884

2,992

Net loss for the period..................................................................

(78,697)

(10,480)

(85,048)

(2,327)

Other comprehensive income

Items that may be reclassified subsequently to profit or loss:

Translation differences from subsidiaries, associates and joint

ventures .........................................................................................

(4,090)

(1,560)

(2,277)

431

Result from net monetary position in subsidiaries, associates and

joint ventures (1)...............................................................................

3,762

4,343

1,568

2,002

Items that may not be reclassified subsequently to profit or loss:

Translation differences from YPF....................................................

99,346

48,127

56,453

(7,860)

Other comprehensive income / (loss) for the period..................

99,018

50,910

55,744

(5,427)

Total comprehensive income / (loss) for the period...................

20,321

40,430

(29,304)

(7,754)

Net profit / (loss) for the period attributable to:

Shareholders of the parent company ..............................................

(78,418)

(10,869)

(84,630)

(2,684)

Non-controlling interest...................................................................

(279)

389

(418)

357

Other comprehensive income for the period attributable to:

Shareholders of the parent company ..............................................

98,277

50,067

55,429

(5,795)

Non-controlling interest...................................................................

741

843

315

368

Total comprehensive income / (loss) for the period

attributable to:

Shareholders of the parent company ..............................................

19,859

39,198

(29,201)

(8,479)

Non-controlling interest...................................................................

462

1,232

(103)

725

Earnings per share attributable to shareholders of the parent

company:

Basic and diluted ............................................................................

31

(199.84)

(27.71)

(215.67)

(6.85)

  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

5

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 STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY

FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 2020 AND 2019 (UNAUDITED)

(Amounts expressed in millions of Pesos)

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY

For the six-month period ended June 30, 2020

Shareholders' contributions

Acquisition

Adjustment

Adjustment

cost of

Subscribed

to

Treasury

to treasury

Share-based

treasury

Share trading

Issuance

capital

contributions

shares

shares

benefit plans

shares

premium

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(4) .......................................................

-

-

-

-

300

-

-

-

300

Settlement of share-based benefit plans(2) ..................................................

-

1

-

(1)

(59)

66

(18)

-

(11)

As decided by the Shareholders' Meeting on April 30, 2020(3) ...................

-

-

-

-

-

-

-

-

-

Other comprehensive income ......................................................................

-

-

-

-

-

-

-

-

-

Net loss ........................................................................................................

-

-

-

-

-

-

-

-

-

Balance at the end of the period ..............................................................

3,924

6,086

9

15

358

243

(414)

640

10,861

Reserves

Equity attributable to

Purchase of

Other

Shareholders

Non-

Total

Future

treasury

comprehensive

Retained

of the parent

controlling

shareholders'

Legal

dividends

Investments

shares

income

earnings

company

interest

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(4) .......................................................

-

-

-

-

-

-

300

-

300

Settlement of share-based benefit plans (2) .................................................

-

-

-

-

-

-

(11)

-

(11)

As decided by the Shareholders' Meeting on April 30, 2020(3) ...................

-

1,200

(35,321)

50

-

34,071

-

-

-

Other comprehensive income ......................................................................

-

-

-

-

98,277

-

98,277

741

99,018

Net loss ........................................................................................................

-

-

-

-

-

(78,418)

(78,418)

(279)

(78,697)

Balance at the end of the period ..............................................................

2,007

3,700

8,934

550

615,063

(1)

(78,418)

562,697

6,012

568,709

  1. Includes 627,491 corresponding to the effect of the translation of the financial statements of YPF and, (33,781) 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 21,353 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 30.
  4. See Note 37.

GUILLERMO EMILIO NIELSEN

President

6

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 STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY

FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 2020 AND 2019 (UNAUDITED) (Cont.)

(Amounts expressed in millions of Pesos)

For the six-month period ended June 30, 2019

Shareholders' contributions

Adjustment

Adjustment

Acquisition cost

Subscribed

to

Treasury

to treasury

Share-based

of treasury

Share trading

Issuance

capital

contributions

shares

shares

benefit plans

shares

premium

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(4) ...............................................

-

-

-

-

217

-

-

-

217

Repurchase of treasury shares............................................................

(4)

(6)

4

6

-

(280)

-

-

(280)

Settlement of share-based benefit plans(2) ..........................................

1

1

(1)

(1)

(57)

71

(17)

-

(3)

As decided by the Shareholders' Meeting on April 26, 2019(3) ...........

-

-

-

-

-

-

-

-

-

As decided by the Board of Directors on June 27, 2019(3) ..................

-

-

-

-

-

-

-

-

-

Other comprehensive income ..............................................................

-

-

-

-

-

-

-

-

-

Net income / (loss) ...............................................................................

-

-

-

-

-

-

-

-

-

Balance at the end of the period ......................................................

3,920

6,079

13

22

275

(198)

(299)

640

10,452

Reserves

Equity attributable to

Purchase of

Other

Shareholders

Non-

Total

Future

treasury

comprehensive

Retained

of the parent

controlling

shareholders'

Legal

dividends

Investments

shares

income

earnings

company

interest

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(4) ...............................................

-

-

-

-

-

-

217

-

217

Repurchase of treasury shares............................................................

-

-

-

-

-

-

(280)

-

(280)

Settlement of share-based benefit plans (2) .........................................

-

-

-

-

-

-

(3)

-

(3)

As decided by the Shareholders' Meeting on April 26, 2019(3) ...........

-

4,800

33,235

280

-

(38,315)

-

-

-

As decided by the Board of Directors on June 27, 2019(3) ..................

-

(2,300)

-

-

-

-

(2,300)

-

(2,300)

Other comprehensive income ..............................................................

-

-

-

-

50,067

-

50,067

843

50,910

Net income / (loss) ...............................................................................

-

-

-

-

-

(10,869)

(10,869)

389

(10,480)

Balance at the end of the period ......................................................

2,007

2,500

44,255

500

347,187

(1)

(10,869)

396,032

4,389

400,421

  1. Includes 355,847 corresponding to the effect of the translation of the financial statements of YPF and, (23,240) 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 14,580 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 29 to the annual consolidated financial statements.
  4. See Note 37.

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

GUILLERMO EMILIO NIELSEN

President

7

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 STATEMENTS OF CASH FLOW

FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 2020 AND 2019 (UNAUDITED) (Amounts expressed in millions of Pesos)

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOW

For the six-month period

ended June 30,

2020

2019

Operating activities:

Net loss..........................................................................................................................................................................

(78,697)

(10,480)

Adjustments to reconcile net loss to cash flows provided by operating activities:

Income from equity interest in associates and joint ventures ...................................................................................

(3,720)

(3,514)

Depreciation of property, plant and equipment .........................................................................................................

86,572

61,755

Depreciation of right-of-use assets............................................................................................................................

8,679

4,353

Amortization of intangible assets...............................................................................................................................

1,409

1,036

Retirement of property, plant and equipment and intangible assets and consumption of materials ....................... .

7,360

8,764

Charge on income tax ...............................................................................................................................................

(1,638)

25,374

Net increase in provisions .........................................................................................................................................

16,165

7,304

Impairment of property, plant and equipment ...........................................................................................................

57,429

-

Exchange differences, interest and other..................................................................................................................

2,240

1,822

Share-based benefit plan ..........................................................................................................................................

300

217

Accrued insurance .....................................................................................................................................................

(3,189)

-

Result from assignment of interest in areas ..............................................................................................................

(12,233)

-

Changes in assets and liabilities:

Trade receivables ......................................................................................................................................................

27,219

(15,237)

Other receivables.......................................................................................................................................................

7,267

(2,875)

Inventories .................................................................................................................................................................

(5,389)

(9,612)

Accounts payable ......................................................................................................................................................

(15,382)

18,261

Taxes payables..........................................................................................................................................................

377

809

Salaries and social security .......................................................................................................................................

(843)

830

Other liabilities ...........................................................................................................................................................

151

384

Decrease in provisions included in liabilities due to payment/use ............................................................................

(1,639)

(1,943)

Contract assets..........................................................................................................................................................

(263)

(96)

Contract liabilities.......................................................................................................................................................

(1,219)

(230)

Dividends received ....................................................................................................................................................

2,096

761

Proceeds from collection of business interruption insurance ...................................................................................

1,004

758

Income tax payments ................................................................................................................................................

(1,456)

(5,055)

Net cash flows from operating activities(1)(2) ............................................................................................................

92,600

83,386

Investing activities:(3)

Acquisition of property, plant and equipment and intangible assets ............................................................................

(67,886)

(74,315)

Contributions and acquisitions of interests in associates and joint ventures ...............................................................

-

(4,676)

Proceeds from sales of financial assets........................................................................................................................

28,172

957

Payment from purchase of financial assets ..................................................................................................................

(19,649)

-

Interests received from financial assets ........................................................................................................................

-

452

Proceeds from assignment of interest in areas ............................................................................................................

13,867

-

Net cash flows used in investing activities ..............................................................................................................

(45,496)

(77,582)

Financing activities:(3)

Payments of loans .........................................................................................................................................................

(79,057)

(33,292)

Payments of interest......................................................................................................................................................

(29,587)

(16,997)

Proceeds from loans .....................................................................................................................................................

81,588

55,239

Repurchase of treasury shares .....................................................................................................................................

-

(280)

Payments of leases .......................................................................................................................................................

(10,059)

(5,571)

Payment of interest in relation to income tax ................................................................................................................

(440)

(124)

Net cash flows used in financing activities..............................................................................................................

(37,555)

(1,025)

Translation differences of cash and cash equivalents ...........................................................................................

7,892

5,568

Net increase in cash and cash equivalents..............................................................................................................

17,441

10,347

Cash and cash equivalents at the beginning of the fiscal year ....................................................................................

66,100

46,028

Cash and cash equivalents at the end of period...........................................................................................................

83,541

56,375

Net increase in cash and cash equivalents..............................................................................................................

17,441

10,347

  1. Does not include exchange differences generated by cash and cash equivalents, which are disclosed separately in this statement.
  2. Includes 6,284 and 2,786 for the six-month period ended June 30, 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 six-month period

ended June 30,

2020

2019

Unpaid acquisitions of property, plant and equipment..................................................................................................

2,918

11,465

Additions of right-of-use assets....................................................................................................................................

4,302

4,786

Capitalization of amortization of right-of-use assets ....................................................................................................

1,796

673

Capitalization of financial accretion for lease liabilities .................................................................................................

452

95

Debt capitalization of joint ventures ..............................................................................................................................

-

738

Dividends payable .........................................................................................................................................................

-

2,300

Dividends receivable .....................................................................................................................................................

-

50

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

GUILLERMO EMILIO NIELSEN

President

8

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

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 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 June 30, 2020:

  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.

9

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

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

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

Organization of the business

As of June 30, 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 six-month period ended June 30, 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 August 10, 2020.

These condensed interim consolidated financial statements corresponding to the six-month period ended on June 30, 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. Loss for the six- month period ended on June 30, 2020 does not necessarily reflect the proportion of the Group's full-year loss.

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.

10

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

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 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 June 30, 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, (date which was extended to January 1, 2023) 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 Group does not expect that the implementation of these amendments will have a significant impact on its financial statements, though is currently evaluating the impact.

  • Amendments to IAS 16 - Proceeds before intended use

In May 2020, the IASB issued amendments that are applicable for fiscal years beginning on or after January 1, 2022, allowing their early application.

After the amendment to IAS 16, an entity may not deduct from the cost of an item of property, plant and equipment any proceeds from selling items produced while bringing that asset to the location and condition necessary for it to be capable of operating. The proceeds from selling any such items, and the production cost of those items, will be recognized in the comprehensive income for the corresponding period. Entities shall disclose separetely the amounts of proceeds and costs, that relate to items that do not proceed from the entity's ordinary activities.

The amendment also clarifies that an item of property, plant and equipment is in said preparation and testing process when assesing the technical and physical performance of the asset. Therefore, an asset may be able to operate as the manner intended by Management and consequently be subject to depreciation before it has reached the level of operating performance expected by Management.

According to the variables present at the end of the reporting period, the Group does not expect that the implementation of these amendments will have a significant impact on its financial statements.

11

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

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

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

  • Amendments to IAS 37 - Onerous Contracts

In May 2020, the IASB issued amendments that are applicable for fiscal years beginning on or after January 1, 2022, allowing their early application.

The amendment clarifies the meaning of "cost of fulfilling a contract" for the purpose of assessing whether the contract is onerous. The direct cost of fulfilling a contract consists of both, the incremental cost of fulfilling that contract (for example, direct labour and materials), as well as an allocation of other costs that relate directly to fulfilliment of contracts (for example, an allocation of the depreciation charge for an item of property, plant and equipment used to fulfill that contract).

The amendment also clarifies that an entity must recognize any impairment loss that has occurred in the assets used to fulfill the contract before recording an onerous loss and when determining such onerosity, the present obligation under an existing contract must be considered, and therofore, does not recognize future operating losses.

According to the variables present at the end of the reporting period, the Group does not expect that the implementation of these amendments will have a significant impact on its financial statements.

  • Amendments to IFRS 3 - Reference to the Conceptual Framework

In May 2020, the IASB issued amendments that are applicable for fiscal years beginning on or after January 1, 2022, allowing their early application.

After updating the reference that the Standard makes to the 2018 Conceptual Framework on the definition of the concepts of assets and liabilities in a business combination, its application could change which assets and liabilities that meet the requirements for recognition in a business combination. In some of these cases, the post-acquisition accounting required by other IFRS Standards could then lead to immediate derecognition of assets or liabilities recognised in a business combination, resulting in so called "Day 2 gains or losses" that do not depict an economic gain or loss.

To remedy this situation, the new exception in IFRS 3 for liabilities and contingent liabilities, specifies that, for some types of liabilities and contingent liabilities, an entity applying IFRS 3 should refer to IAS 37 "Provisions, contingent liabilities and contingent assets", or IFRIC 21 "Levies", instead of the 2018 Conceptual Framework. It has also been clarified that the acquirer must not recognize contingent assets on the acquisition date as defined in IAS 37.

The Group does not expect that the implementation of these amendments will have a significant impact on its financial statements.

  • Amendments to IFRS 16 -COVID-19 Related rent concessions

In May 2020, the IASB issued amendments that are applicable for fiscal years beginning on or after June 1, 2020, allowing their early application.

A lessee may elect to account for any change in lease payments as a consequence of the COVID-19 pandemic, arising from the rent concession the same way it would account for the change applying IFRS 16 if the change were not a lease modification.

This option applies only to rent concessions occurring as a direct consequence of the COVID-19 pandemic and only if all of the following conditions are met:

  1. the change in lease payments results in revised consideration for the lease that is substantially the same as, or less than, the consideration for the lease immediately preceding the change;
  2. any reduction in lease payments affects only payments originally due or before June 30, 2021 (for example, a rent concession would meet this condition if it results in reduced lease payments on or before June 30, 2021, and increased lease payments that extend beyond June 30, 2021); and
  3. there is no substantive change to other terms and conditions of the lease.

The Group does not expect that the implementation of these amendments will have a significant impact on its financial statements.

12

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

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

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

  • Anual improvements to IFRS - Standards 2018-2020

In May 2020, the IASB issued the 2018-2020 cycle of annual improvements that are applicable for fiscal years beginning on or after January 1, 2022, allowing their early application.

A summary of the main modified standards and their purpose follows:

Standard

Amended Subjec

Detail

IFRS 1 "First-time adoption

Subsidiary as a First-time

When a subsidiary becomes a first-time adopter later than its parent

of IFRS"

IFRS adopter

company, it may elect to measure its assets and liabilities, according

to how their parent measured them in their consolidated financial

statements, based on the parent´s date of transition to IFRSs (without

considering consolidation adjustments and for the purposes of the

business combination for which the parent company acquired the

subsidiary). After the amendment, this exception is extended to

accumulated translation differences.

A similar election is available to an associate or joint venture.

IFRS 9 "Financial

Fees in the "10 per cent"

An entity must derecognise the original financial liability and recognise

Instruments"

Test for Derecognition of

a new financial liability when, among other requirements, there is a

financial liabilities

substantial modification of the terms of an existing financial liability.

The terms are substantially different if the discounted present value of

the cash flows under the new terms using the original effective interest

rate is at least 10 per cent different from the discounted present value

remaining cash flows of the original financial liability, including any fees

paid net of any fees received in the 10 per cent test. The amendment

clarifies that when determining this value, only the items paid or

received between the borrower and the lender are included, including

those paid or received by one or the other on behalf of the other.

IFRS 16 "Leases"

Ilustrative examples- Lease

It is removed from Illustrative Example 13, reimbursement relating to

incentives

leasehold improvements.

IAS 41 "Agriculture"

Taxation in fair value

Paragraph 22 was amended to remove the requirement to exclude

measurements

cash flows for taxation when measuring fair value, as to aline the

requirements in IAS 41 on fair value measurements with those in IFRS

13 "Fair Value Measurement".

The Group does not expect that the implementation of these amendments will have a significant impact on its financial statements.

Additionally, amendments have been issued to IFRS 4 and IFRS 17 "Insurance contracts", which were not included as they are not applicable to the Group since it does not generate related activities.

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.

13

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

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

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

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.

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-

  1. and adversely affecting the demand for refined products in geographical areas where the most relevant measures were implemented to control the virus' spread. Particularly, since March, the lower global demand for refined products 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, 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.

From the implementation of these measures, the demand for gasoline, diesel and jet fuel dropped significantly, reaching declines of 70%, 40% and 90%, respectively, as a daily average compared to the demand in the days prior to these measures. As of the date of these condensed interim consolidated financial statements, these accumulated declines are within approximately of 50%, 20% and 90%, respectively. Despite the slight recovery since certain flexibilization of measures previously mentioned, current activity levels continue affecting the Group's comprehensive results and cash flows. Consequently, the processing levels at the Group's refineries are 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
    As explained in Notes 2.b.8 and 2.b.9 to the annual consolidated financial statements, as a general criteria, the method used to estimate the recoverable amount of property, plant and equipment mainly consists of estimating the value-in- use based on the future expected cash flows arising from the use of such assets, discounted at a rate that reflects the weighted average cost of the capital employed.
    Regarding interim periods, IAS 34 requires entities to apply the impairment testing. When an entity has previously recognized impairment losses, it is necessary to review the detailed calculations made at the end of the period if the indicators that gave rise to such losses continues to remain present. To such end, the entity shall revise the existence of significant indicators of impairment or reversals since the end of the last fiscal year and determine whether it has to proceed or not with such detailed testing.
    The Group continuously monitors business perspectives in the market it operates. Specifically, in the domestic market of natural gas, as in 2019, an excess supply is observed with respect to the domestic demand at specific times of the year due to greater production in unconventional fields. This situation generated a reduction in natural gas sales price in the domestic market that deepened as of the second quarter of 2020, mainly due to lower sales prices to distributors (see Note 35.a) and lower prices obtained on gas's biddings on power plants channel.

14

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

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

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

Therefore, given the impairment indicators for the natural gas market, the Group estimated the recoverable value of the net assets comprising the CGUs gas of the Upstream segment based on the detailed calculation of the value-in- use as of June 30, 2020.

As of June 30, 2020, based on the background and the method mentioned above, the Group recognized an impairment charge of property, plant and equipment, mainly for the CGU Gas - Neuquina Basin of 49,170 (36,877 net of the effect of income tax) and for the CGU Gas - Austral Basin of 8,126 (6,095 net of the effect of income tax), generated, mainly, by the expected fall in gas prices due to the situation the market is going through at global level, and also, to the specific dynamics mentioned above, at the local level. This trend in prices is maintained in the projections for the upcoming months, which affects investments and activity, generating the impairment of the related assets for the recorded charge.

The discount rate after taxes used as of June 30, 2020 was 12.63% for 2020 and 2021 and 13.06% for 2022 and thereafter, being the recoverable value after taxes as of such date for the CGU Gas - Neuquina Basin and the CGU Gas - Austral Basin 107,911 and 7,835, respectively.

  • 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.
    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 34% (45,440), 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 six-month period ended on June 30, 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.

15

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

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

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

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 Group's comprehensive results, cash flows and financial position of the Group, nor its effect on access to debt markets, the contractual position with certain counterparties (including as a result of events of force majeure or other similar events under the Group's contracts, see also Note 33.a.2), the Group's capacity to meet its commitments and future asset impairments, among other issues.

2.d) Comparative information

Amounts and other information corresponding to the year ended on December 31, 2019 and to the six-month period ended on June 30, 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.

4. ACQUISITIONS AND DISPOSITIONS

  • Bandurria Sur Area

As mentioned on Note 33.b to the annual consolidated financial statements, on January 2020, YPF was notified of the acquisition by Shell Compañía Argentina de Petróleo S.A. and Equinor Argentina AS (jointly, the "Consortium") of the entire share package of Schlumberger Oilfield Eastern Ltd. ("SPM"), an affiliate of Schlumberger Argentina S.A. This assignment required payment by SPM of the outstanding price that amounted approximately to US$ 105 million, which has already been received by YPF. In consideration of the above, the Group recorded a profit of 6,356 included in "Other net operating results".

On March 5, 2020, an agreement was executed, under which YPF assigned to Bandurria Sur Investments S.A. ("BSI", formerly named SPM Argentina 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 BSI. On May 14, 2020, YPF and BSI entered into the final contracts for the joint exploitation of hydrocarbons in the Area, thereby complying with the precedent conditions for the entry into force of the agreement for the assignment of 11% of the unconventional exploitation concession of the Area to BSI. Consequently, YPF will continue to be the Operator of the Area, keeping a 40% interest in the concession, while BSI's interest will be 60%. In consideration of the above, the Group recorded a profit of 4,420 included in "Other net operating results".

16

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

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

4. ACQUISITIONS AND DISPOSITIONS (Cont.)

  • CAN 100 exploration permit (offshore) -BlockE-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 closure of the transaction was made, efectivizing YPF's assigment of its 50% interest in the area and the operation to Equinor Argentina B.V. Sucursal Argentina. On April 22, 2020, YPF received US$ 22 million. In consideration of the above, the Group recorded a profit of 1,457 included in "Other net operating results".

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, which did not have a significant impact on the Group. Likewise, given the restrictions imposed by the BCRA for access to the exchange market, specifically since the publication of Communication No. 7030, the Group has been reducing its portion of cash and cash equivalents denominated in currencies other than the Argentine Peso, and, therefore it may be affected in case of exchange rate variations.

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 June 30, 2020, the Group has complied with all assumed clauses of commitments. It should be noted that, under the terms and conditions of the loans that subsidiary Metrogas has taken with Industrial and Commercial Bank of China Limited - Dubai Branch and Itaú Unibanco - Miami Branch, the debt service coverage ratio would not have been complied with, which could have accelerated the maturities of these financial liabilities. However, on June 30, 2020, financial creditors formally accepted to waive Metrogas contractual obligation to comply with such financial ratio, which should not be lower than 3.00 and be kept not lower than 2.50 as of June 30, 2020.

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.

17

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

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

5. FINANCIAL RISK MANAGMENT (Cont.)

  • 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.

Moreover, the Group has recorded an impairment charge of credits related to the Decree No. 1053/2018. See Note 35.a.

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 transport and commercialization to third parties and the Downstream segment, (ii) the commercial and technical operation of the LNG regasification terminal 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.

18

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

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS AS OF JUNE 30, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

6. SEGMENT INFORMATION (Cont.)

Upstream

For the six-month period ended June 30, 2020

Revenues from sales .................................................................................................................

1,074

Revenues from intersegment sales ...........................................................................................

133,899

Revenues ...................................................................................................................................

134,973

Operating profit / (loss)...............................................................................................................

(73,128)

Income from equity interests in associates and joint ventures ..................................................

-

Depreciation of property, plant and equipment..........................................................................

67,326

Impairment of property, plant and equipment ............................................................................

57,296

Acquisition of property, plant and equipment ............................................................................

36,296

Assets.........................................................................................................................................

763,538

For the six-month period ended June 30, 2019

Revenues from sales .................................................................................................................

1,152

Revenues from intersegment sales ...........................................................................................

128,452

Revenues ...................................................................................................................................

129,604

Operating profit / (loss)...............................................................................................................

2,549

Income from equity interests in associates and joint ventures ..................................................

-

Depreciation of property, plant and equipment..........................................................................

51,018

Acquisition of property, plant and equipment .................................................................................

56,660

As of December 31, 2019

Assets.........................................................................................................................................

742,850

Central

Administration

Consolidation

Gas and Power

Downstream

and Others

Adjustments(1)

Total

55,476

248,015

6,652

(2,989)

308,228

4,094

1,643

11,185

(150,821)

-

59,570

249,658

17,837

(153,810)

308,228

(9,905)

4,319

(10,225)

10,293

(78,646)

2,499

1,221

-

-

3,720

(2)

850

14,715

3,681

-

86,572

62

-

71

-

57,429

1,493

7,684

2,317

-

47,790

200,831

556,344

150,716

5,662

1,677,091

51,966

232,620

8,109

(2,611)

291,236

4,069

1,421

10,502

(144,444)

-

56,035

234,041

18,611

(147,055)

291,236

1,623

14,622

(4,758)

3,763

17,799

2,696

818

-

-

3,514

(2)

581

8,758

1,398

-

61,755

2,191

9,547

2,060

-

70,458

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.

19

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 JUNE 30, 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 June 30, 2020 and December 31, 2019, and their allocation to their fair value levels:

As of June 30, 2020

Financial Assets

Level 1

Level 2

Level 3

Total

Investments in financial assets:

- Public securities...............................................................................................................

8,119

-

-

8,119

8,119

-

-

8,119

Cash and cash equivalents:

- Mutual funds ....................................................................................................................

29,786

-

-

29,786

29,786

-

-

29,786

37,905

-

-

37,905

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.

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 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 Economy 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 Secretariat of Finance and Secretariat of Treasury, of which the Group is a creditor, which are valued at amortized cost (see Note 36). Later, on July 17, 2020, the Ministry of Economy informed through a press release that it had submitted to the Argentine Congress a Bill to restore sustainability of the external public debt instrumented by US-denominated securities issued under the argentine law.

Additionally, on April 22, 2020, the Argentine Government issued a proposal for restructuring Public Securities issued under foreign law under Decree No. 391/2020, which includes BONAR 2021, currently held by the Group and valued at fair value with changes in results. On the same date, the Argentine Government failed to pay interest coupons due on certain global bonds, among which are BONAR 2021, which are unpaid as of the date of issuance of these condensed interim consolidated financial statements. On May 6, 2020, the Group adhered to the restructuring proposal. Later, on July 6, 2020 and under Decree No. 582/2020, the Argentine Government filed an amendment to the terms and conditions established by Decree No. 391/2020. Finally, the Argentine Government informed that it had reached an agreement with representatives of the Ad Hoc Group of Argentine Bondholders, Argentina's Creditors Committee and the Exchange Bondholder Group and other holders (see Note 39).

Fair value estimates

From December 31, 2019 until June 30, 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 six-month period ended June 30, 2020, there were no transfers between the different hierarchies used to determine the fair value of the Group's financial instruments.

20

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 JUNE 30, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

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 491,444 and 476,750 as of June 30, 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

June 30, 2020

December 31, 2019

Net book value of intangible assets..................................................................

43,351

37,608

Provision for impairment of intangible assets ...................................................

(483)

(429)

42,868

37,179

The evolution of the Group's intangible assets for the six-month period ended June 30, 2020 and the year ended December 31, 2019 is as follows:

Service

Exploration

Other

concessions

rights

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..........................................................................................................

301

-

360

661

Translation effect .............................................................................................

9,206

2,910

3,798

15,914

Adjustment for inflation(1) ..................................................................................

-

-

396

396

Decreases and reclassifications ......................................................................

(1)

(264)

318

53

Accumulated amortization

Increases..........................................................................................................

1,074

-

335

1,409

Translation effect .............................................................................................

6,159

-

3,622

9,781

Adjustment for inflation(1) ..................................................................................

-

-

91

91

Decreases and reclassifications ......................................................................

-

-

-

-

Cost ..................................................................................................................

61,442

19,301

29,175

109,918

Accumulated amortization ...............................................................................

41,523

-

25,044

66,567

Balance as of June 30, 2020 .........................................................................

19,919

19,301

4,131

43,351

  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 financial statements.

9. PROPERTY, PLANT AND EQUIPMENT

June 30, 2020

December 31, 2019

Net book value of property, plant and equipment............................................

1,289,053

1,156,950

Provision for obsolescence of materials and equipment .................................

(7,777)

(6,610)

Provision for impairment of property, plant and equipment.............................

(136,375)

(81,329)

1,144,901

1,069,011

21

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

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

9. PROPERTY, PLANT AND EQUIPMENT (Cont.)

Changes in Group's property, plant and equipment for the six-month period ended June 30, 2020 and the year ended December 31, 2019 are as follows:

Mining

property, wells

Land and

and related

buildings

equipment

Cost .....................................................

48,047

1,604,868

Accumulated depreciation....................

22,114

1,231,930

Balance as of December 31, 2018.....

25,933

372,938

Cost

Increases .............................................

46

1,980

Translation effect .................................

24,838

967,212

Adjustment for inflation(6)......................

3,382

-

Decreases and reclassifications...........

880

114,493

Accumulated depreciation

Increases .............................................

1,260

137,017

Translation effect .................................

11,444

758,928

Adjustment for inflation (6) .....................

1,726

-

Decreases and reclassifications...........

9

(2,287)

Cost .....................................................

77,193

2,688,553

Accumulated depreciation....................

36,553

2,125,588

Balance as of December 31, 2019.....

40,640

562,965

Cost

Increases .............................................

1

448

Translation effect .................................

11,907

479,938

Adjustment for inflation (6) .....................

1,288

-

Decreases and reclassifications...........

905

44,692

Accumulated depreciation

Increases .............................................

1,015

83,710

Translation effect .................................

5,639

383,484

Adjustment for inflation (6) .....................

644

-

Decreases and reclassifications...........

-

(1,074)

Cost .....................................................

91,294

3,213,631

Accumulated depreciation....................

43,851

2,591,708

Balance as of June 30, 2020..............

47,443

621,923

Refinery

equipment

and

Materials and

Drilling and

Exploratory

Furniture,

Infrastructure

petrochemical

Transportation

equipment in

work in

drilling in

fixtures and

Selling

for natural gas

plants

equipment

warehouse

progress

progress

installations

equipment

distribution

Other property

Total

280,451

16,162

34,990

124,381

7,972

24,717

40,998

24,168

31,637

2,238,391

152,295

10,579

-

-

-

20,707

25,697

12,508

22,458

1,498,288

128,156

5,583

34,990

124,381

7,972

4,010

15,301

11,660

9,179

740,103

(3)

4,676

83

43,089

114,878

6,532

106

-

865

589

172,844

171,788

8,723

21,044

70,818

5,014

14,289

25,116

-

13,581

1,322,423

-

716

920

1,326

-

828

-

13,010

4,793

24,975

15,715

1,358

(37,620)

(116,818)

(8,132)

1,077

4,021

6,600

(3,894)

(22,320)

(3)

16,092

1,345

-

-

-

2,536

2,765

989

1,325

163,329

93,611

5,917

-

-

-

11,935

15,822

-

9,862

907,519

-

486

-

-

-

773

-

6,733

3,270

12,988

(33)

(376)

-

-

-

(834)

(13)

3,647

(2,874)

(2,761)

472,630

27,042

62,423

194,585

11,386

41,017

70,135

44,643

46,706

3,736,313

261,965

17,951

-

-

-

35,117

44,271

23,877

34,041

2,579,363

(1)

210,665

9,091

62,423

194,585

11,386

5,900

25,864

20,766

12,665

1,156,950

202

7

15,899

29,390

68

101

-

1,587

87

47,790

84,202

4,372

10,667

29,051

1,633

7,332

13,172

-

6,552

648,826

-

323

158

963

-

192

-

6,067

1,248

10,239

5,393

459

(12,362)

(52,308)

(2,688)

2,703

2,828

(72)

47

(10,403)

11,598

778

-

-

-

1,601

1,935

586

732

101,955

47,369

2,969

-

-

-

6,101

7,999

-

4,826

458,387

-

188

-

-

-

175

-

3,245

920

5,172

-

(34)

-

-

-

(3)

(1)

(48)

(5)

(1,165)

562,427

32,203

76,785

201,681

10,399

51,345

86,135

52,225

54,640

4,432,765

320,932

21,852

-

-

-

42,991

54,204

27,660

40,514

3,143,712

(1)

241,495

10,351

76,785

201,681

10,399

(2)

8,354

31,931

24,565

14,126

1,289,053

(4)

(5)

(7)

(7)

  1. Includes 24,365 and 22,343 of mineral property as of June 30, 2020 and December 31, 2019 respectively.
  2. As of June 30, 2020, there are 17 exploratory wells in progress. During the six-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 577 and 714 corresponding to short-term leases and the variable charge of leases related to the underlying asset return/use, respectively. Additionally, it includes 1,796 and 452 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 disposal of the 11% interest of Bandurria Sur area. See Note 4.

22

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

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 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 six-month period ended June 30, 2020 and 2019, the rate of capitalization was 10.16% and 10.40%, respectively, and the amount capitalized amounted to 423 and 449, respectively, for the period mentioned above.

Set forth below is the evolution of the provision for obsolescence of materials and equipment for the six-month period ended on June 30, 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

Increase charged to profit / (loss) ...............................................................

6

Decreases charged to profit / (loss) ..........................................................

(1)

Amounts incurred due to utilization ...........................................................

(2)

Translation differences ..............................................................................

1,164

Balance as of June 30, 2020.....................................................................

7,777

Set forth below is the evolution of the provision for impairment of property, plant and equipment for the six-month period ended on June 30, 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)

Translation differences ..............................................................................

20,274

Balance as of December 31, 2019 ...........................................................

81,329

(3)

Increase charged to profit / (loss) ...............................................................

57,429

Depreciation ..............................................................................................

(15,383)

(2)

Translation differences ..............................................................................

13,000

Balance as of June 30, 2020.....................................................................

136,375

  1. See Note 2.c to the annual consolidated financial statements.
  2. Included in "Depreciation of property, plant and equipment" in Note 26.
  3. See Note 2.c.

23

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

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

10. RIGHT-OF-USE ASSETS

The evolution of the Group's right-of-use assets for the six-month period ended June 30, 2020 and for the fiscal year ended December 31, 2019 are as follows:

Exploitation

Machinery

Land and

facilities and

and

Transportation

buildings

equipment

equipment

Gas stations

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

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 .....................................................................

8

1,989

2,175

97

33

4,302

Translation differences ...................................

178

4,267

5,844

808

2,346

13,443

Adjustment for inflation(3) ................................

3

-

-

114

-

117

Decreases and reclassifications..........................

-

(3,072)

(1,710)

-

-

(4,782)

Accumulated depreciation

Increases ....................................................................

154

3,673

3,144

434

3,070

10,475

Translation differences ...................................

56

1,547

990

135

838

3,566

Adjustment for inflation(3) ................................

2

-

-

25

-

27

Decreases and reclassifications..........................

-

(1,422)

(505)

-

-

(1,927)

Cost ...............................................................................

1,215

26,470

39,275

6,442

15,561

88,963

Accumulated depreciation ..............................

465

10,480

7,370

1,371

6,947

26,633

Balance as of June 30, 2020........................

750

15,990

31,905

5,071

8,614

62,330

(1)

(2)

  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 8,679 that were charged to "Depreciation of right-of-use assets" in the comprehensive statement of income (see Note 26) and 1,796 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.

24

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

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 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 June 30, 2020 and December 31, 2019:

June 30,

December 31,

2020

2019

Amount of investments in associates .............................................................................................

7,445

6,419

Amount of investments in joint ventures ........................................................................................

73,757

61,183

Provision for impairment of investments in associates and joint ventures .................................

(12)

(12)

81,190

67,590

The main movements during the six-month period ended June 30, 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 .........................................................

3,720

Translation differences ..........................................................................................................

10,886

Distributed dividends ....................................................................................................................

(2,096)

Adjustment for inflation(1) .......................................................................................................

1,090

Balance as of June 30, 2020...............................................................................................

81,190

  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.

25

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

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 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 six-month period ended June 30, 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 six-month period

For the six-month period

ended June 30,

ended June 30,

2020

2019

2020

2019

Net income ............................................................................

467

698

3,253

2,816

Other comprehensive income .............................................

1,143

939

10,833

3,839

Comprehensive income for the period ..........................

1,610

1,637

14,086

6,655

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 June 30, 2020 and December 31, 2019, as well as the results for the six-month period ended June 30, 2020 and 2019, are detailed below:

June 30,

December 31,

2020(1)

2019(1)

Noncurrent assets ....................................................................................................

119,274

96,219

Current assets ..........................................................................................................

28,294

26,622

Total assets ..............................................................................................................

147,568

122,841

Noncurrent liabilities .................................................................................................

62,690

57,799

Current liabilities .......................................................................................................

28,919

19,503

Total liabilities ...........................................................................................................

91,609

77,302

Total shareholders' equity ........................................................................................

55,959

45,539

For the six-month period ended

June 30,

2020(1)

2019(1)

Revenues .................................................................................................................

9,164

6,567

Costs ........................................................................................................................

(4,217)

(2,866)

Gross profit ...............................................................................................................

4,947

3,701

Operating profit.........................................................................................................

4,088

3,175

Income from equity interests in associates and joint ventures ................................

64

248

Net financial results ..................................................................................................

(312)

(768)

Net profit before income tax .....................................................................................

3,840

2,655

Income tax ................................................................................................................

(1,440)

(445)

Net profit ..........................................................................................................................

2,400

2,210

  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.

26

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

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 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

Capital

Net profit

Holding in

Name and Issuer

Class

Face Value

Amount

Main Business

Registered Address

Date

stock

(loss)

Equity

Capital Stock

Subsidiaries:(7)

YPF International S.A.(6)

Common

Bs.

100

66,897

Investment

La Plata Street 19, Santa Cruz de la Sierra,

06-30-20

15

-

91

100.00%

República de Bolivia

YPF Holdings Inc.(6)

Common

US$

0.01

810,614

Investment and finance

10333 Richmond Avenue I, Suite 1050, TX, U.S.A.

06-30-20

57,028

(3)

(15,122)

100.00%

Operadora de Estaciones de

Common

$

1

163,701,747

Commercial management of YPF's gas stations

Macacha Güemes 515, Buenos Aires, Argentina

06-30-20

164

(562)

4,312

99.99%

Servicios S.A.

A-Evangelista S.A.

Common

$

1

306,818,702

Engineering and construction services

Macacha Güemes 515, Buenos Aires, Argentina

06-30-20

307

(1,868)

(2,655)

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,

06-30-20

569

(1,702)

15,645

70.00%

Argentina.

YPF Chile S.A.(6)

Common

-

-

50,968,649

Lubricants and aviation fuels trading and hydrocarbons research and

Villarica 322; Módulo B1, Qilicura, Santiago

06-30-20

3,213

(248)

2,314

100.00%

exploration

YPF Tecnología S.A.

Common

$

1

234,291,000

Investigation, development, production and marketing of technologies,

Macacha Güemes 515, Buenos Aires, Argentina

06-30-20

459

78

3,151

51.00%

knowledge, goods and services

Compañía de Inversiones

Common

$

1

236,474,420

Exploration, exploitation, processing, management, storage and transport of all

Macacha Güemes 515, Buenos Aires, Argentina

06-30-20

236

(77)

8

100.00%

Mineras S.A.

types of minerals; assembly, construction and operation of facilities and

structures and processing of products related to mining

27

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

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

11. INVESTMENTS IN ASSOCIATES AND JOINT VENTURES (Cont.)

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

06-30-2020

12-31-2019

Information of the issuer

Description of the Securities

Book value

Name and Issuer

Class

Face Value

Amount

(2)

Joint Ventures(5):

YPF Energía Eléctrica S.A.(6)

Common

$

1

1,879,916,921

42,790

Compañía Mega S.A.(6)

Common

$

1

244,246,140

6,048

Last available financial statements

Cost (1)

Capital

Net profit

Holding in

Book Value (2)

Main Business

Registered Address

Date

stock

(loss)

Equity

Capital Stock

1,085

Exploration, exploitation, industrialization and marketing of Macacha Güemes 515, Buenos Aires, Argentina

06-30-20

3,747

2,400

55,959

75.00%

35,382

hydrocarbons and generation, transport and marketing of

electric energy

-

Separation, fractionation and transportation of natural

San Martín 344, P. 10º, Buenos Aires, Argentina

06-30-20

643

(22)

15,848

38.00%

5,211

gas liquids

Profertil S.A.(6)

Common

$

1

391,291,320

12,373

-

Production and marketing of fertilizers

Alicia Moreau de Justo 740, P. 3, Buenos Aires,

03-31-20

783

726

27,645

50.00%

10,778

Argentina

Refinería del Norte S.A.

Common

$

1

45,803,655

1,892

-

Refining

Maipú 1, P. 2º, Buenos Aires, Argentina

03-31-20

92

(621)

3,861

50.00%

1,881

Oleoducto Loma Campana-Lago

Common

$

1

738,139,164

837

738

Construction and exploitation of a pipeline, oil transport

Macacha Güemes 515, Buenos Aires, Argentina

06-30-20

868

(136)

887

85.00%

762

Pellegrini S.A. (6)

and storage, import, export, purchase and sale of raw

materials, industrial equipment and machinery

CT Barragán S.A.(6)

Common

$

1

4,279,033,952

9,365

4,348

Production and generation of electric energy

Maipú 1, Buenos Aires, Argentina

06-30-20

8,558

2,589

18,755

50.00%

6,799

73,305

6,171

60,813

Associates:

Oleoductos del Valle S.A.

Common

$

10

4,072,749

2,223

-

Oil transportation by pipeline

Florida 1, P. 10º, Buenos Aires, Argentina

03-31-20

110

535

5,632

37.00%

1,778

Terminales Marítimas Patagónicas

Common

$

10

476,034

1,030

-

Oil storage and shipment

Av. Leandro N. Alem 1180, P. 11º, Buenos Aires,

03-31-20

14

62

2,745

33.15%

711

S.A.

Argentina

Oiltanking Ebytem S.A.(6)

Common

$

10

351,167

796

-

Hydrocarbon transportation and storage

Terminal Marítima Puerto Rosales - Province of

06-30-20

12

303

2,481

30.00%

871

Buenos Aires, Argentina.

Central Dock Sud S.A.

Common

$

0.01

11,869,095,145

1,586

-

Electric power generation and bulk marketing

Pasaje Ingeniero Butty 220, P.16°, Buenos Aires,

06-30-20

1,231

173

16,201

10.25%

(4)

1,542

Argentina

YPF Gas S.A.

Common

$

1

59,821,434

1,156

-

Gas fractionation, bottling, distribution and transport for

Macacha Güemes 515, P.3º, Buenos Aires,

03-31-20

176

162

5,066

33.99%

965

industrial and/or residential use

Argentina

Other companies:

Other (3)

-

-

-

-

1,106

648

-

-

-

-

-

-

-

922

7,897

648

6,789

81,202

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.

28

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

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

12. INVENTORIES

Refined products...................................................................................................

Crude oil and natural gas....................................................................................

Products in process..............................................................................................

Raw materials, packaging materials and others............................................

June 30, 2020

December 31, 2019

63,492

50,563

31,718

24,756

2,687

2,259

3,387

2,901

101,284

(1)

80,479

(1)

  1. As of June 30, 2020, and December 31, 2019, the cost of inventories does not exceed their net realizable value.

13. OTHER RECEIVABLES

June 30, 2020

December 31, 2019

Noncurrent

Current

Noncurrent

Current

Receivables from services rendered.........................................

457

1,823

455

2,706

Tax credit and export rebates ...................................................

8,435

6,864

6,896

6,076

Loans to third parties and balances with related parties (1) .......

690

823

2,435

3,288

Collateral deposits.....................................................................

2

682

2

640

Prepaid expenses......................................................................

769

3,959

603

2,370

Advances and loans to employees ...........................................

26

463

29

596

Advances to suppliers and custom agents (2)............................

-

10,851

-

10,896

Receivables with partners in JO................................................

1,989

2,671

2,248

7,932

Insurance receivables ...............................................................

-

2,788

-

498

Miscellaneous............................................................................

14

1,688

45

1,255

12,382

32,612

12,713

36,257

Provision for other doubtful receivables ...................................

(1,077)

(69)

(924)

(65)

11,305

32,543

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

Accounts receivable and related parties(1)(2) .............................

Provision for doubtful trade receivables ....................................

June 30, 2020

December 31, 2019

Noncurrent

Current

Noncurrent

Current

7,486

115,040

15,325

124,657

(2,228)

(14,062)

-

(6,580)

5,258

100,978

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 six-month period ended on June 30, 2020 and for the year ended December 31, 2019:

Provision for doubtful trade receivables

Noncurrent

Current

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 .............................................................

2,228

(2)

7,766

(2)

Decreases charged to income ...............................................................

-

(582)

Translation differences ...........................................................................

-

323

Result from net monetary position(1) ......................................................

-

(25)

Balance as of June 30, 2020................................................................

2,228

14,062

  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.
  2. Includes 7,961 corresponding to credits with natural gas distributors for the accumulated daily differences pursuant to Decree No. 1053/2018. See Note 35.a.

29

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

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

15. CASH AND CASH EQUIVALENTS

June 30, 2020

December 31, 2019

Cash and banks .......................................................................................

5,865

6,983

Short-term investments(1) .........................................................................

47,890

52,079

Financial assets at fair value with changes in results(2) ...........................

29,786

7,038

83,541

66,100

  1. Includes 13,115 and 10,043 of term deposits and other investments with the BNA as of June 30, 2020 and December 31, 2019, respectively.
  2. See Note 7.

16. PROVISIONS

Changes in the Group's provisions for the six-month period ended June 30, 2020 and for the fiscal year ended December 31, 2019 are as follows:

Provision for

hydrocarbon wells

Provision for lawsuits

Provision for

abandonment

and contingencies

environmental liabilities

obligations

Total

Noncurrent

Current

Noncurrent

Current

Noncurrent

Current

Noncurrent

Current

Balance as of December 31, 2018 ................

21,235

Increases charged to expenses.......................

18,460

Decreases charged to income.........................

(2,358)

Amounts incurred due to payments/utilization .

(73)

Net exchange and translation differences .......

7,405

Result from net monetary position(4) ................

(92)

Reclassifications and other movements ..........

(744)

Balance as of December 31, 2019 ................

43,833

Increases charged to expenses.......................

2,475

Decreases charged to income.........................

(661)

Amounts incurred due to payments/utilization .

(18)

Net exchange and translation differences .......

3,935

Result from net monetary position(4) ................

(12)

Reclassifications and other movements ..........

(121)

Balance as of June 30, 2020.........................

49,431

1,123

3,720

1,622

58,433

1,784

83,388

4,529

(2)

9

1,695

-

7,409

-

27,564

9

(744)

(63)

-

(2,950)

-

(5,371)

(744)

(194)

-

(1,821)

-

(2,774)

(73)

(4,789)

443

479

106

35,219

1,079

43,103

1,628

-

-

-

-

-

(92)

-

648

(2,003)

2,003

(1,004)

(1)

2,176

(1)

(3,751)

4,827

1,285

3,828

1,910

97,107

2,265

144,768

5,460

(3)

138

1,311

-

5,083

-

8,869

138

(338)

(46)

-

-

-

(707)

(338)

(14)

-

(606)

-

(1,001)

(18)

(1,621)

212

237

6

17,502

400

21,674

618

-

-

-

-

-

(12)

-

344

(648)

648

(1,001)

1,001

(1,770)

1,993

1,627

4,682

1,958

118,691

2,665

172,804

6,250

  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 six-month period ended on June 30, 2020, nor have there been any changes in the evaluation of the affairs prevailing as of December 31, 2019.

30

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

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 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 six-month period ended June 30, 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 six-month period ended June 30, 2020 and 2019 is as follows:

For the six-month period

ended June 30,

2020

2019

Current income tax .......................................................................................................................

(623)

(812)

Deferred income tax .....................................................................................................................

2,261

(3,761)

(1)

Subtotal.........................................................................................................................................

1,638

(4,573)

Income tax - Well abandonment..................................................................................................

-

(16,239)

(2)

Special tax - Tax revaluation, Law No. 27,430............................................................................

-

(4,562)

(3)

1,638

(25,374)

  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 Note15 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 six-month period ended June 30, 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 six-month period

ended June 30,

2020

2019

Net income before income tax .................................................................................................................

(80,335)

14,894

Statutory tax rate .....................................................................................................................................

30%

30%

Statutory tax rate applied to net income before income tax ....................................................................

24,101

(4,468)

Effect of the valuation of property, plant and equipment and intangible assets, net ...............................

(24,350)

3,238

Effect of exchange differences and other results associated to the valuation of the currency, net(1) .....

2,325

600

Effect of the valuation of inventories ........................................................................................................

(2,694)

(3,372)

Income on investments in associates and joint ventures ........................................................................

1,116

1,054

Effect of tax rate change(2) .......................................................................................................................

(3,800)

1,574

Dispute associated to cost deduction for wells abandonment.................................................................

-

(5,175)

Miscellaneous...........................................................................................................................................

4,940

1,976

Income tax ................................................................................................................................................

1,638

(4,573)

  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 1,344 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 2,917 as non-current income tax payable, which mainly include 2,905 corresponding to the 38 installments related to the mentioned plan.

31

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

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

17. INCOME TAX (Cont.)

Breakdown of deferred tax as of June 30, 2020 and December 31, 2019 is as follows:

June 30,

December 31,

2020

2019

Deferred tax assets

Provisions and other non-deductible liabilities .....................................................................................

9,690

5,344

Tax losses carryforward .......................................................................................................................

67,170

52,443

Miscellaneous.......................................................................................................................................

1,186

937

Total deferred tax assets ..................................................................................................................

78,046

58,724

Deferred tax liabilities

Property, plant and equipment .............................................................................................................

(109,625)

(110,704)

Adjustment for tax inflation ...................................................................................................................

(52,038)

(38,177)

Miscellaneous.......................................................................................................................................

(10,345)

(5,491)

Total deferred tax liabilities...............................................................................................................

(172,008)

(154,372)

Total Net deferred tax ...................................................................................................................

(93,962) (1)

(95,648) (1)

  1. Includes (739) and (1,523) as of June 30, 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 June 30, 2020 and December 31, 2019, there are no significant deferred tax assets which are not recognized.

As of June 30, 2020 and December 31, 2019, the Group has classified as deferred tax assets 2,332 and 1,583, respectively, and as deferred tax liability 96,294 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 June 30, 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

June 30, 2020

December 31, 2019

Non

Non

current

Current

current

Current

VAT.................................................................................

-

663

-

3,532

Withholdings and perceptions ........................................

-

1,305

-

2,070

Royalties.........................................................................

-

2,382

-

1,268

Tax on Fuels...................................................................

-

4,965

-

635

IIBB .................................................................................

-

506

-

512

Miscellaneous.................................................................

239

4,030

1,428

3,420

239

13,851

1,428

11,437

19. SALARIES AND SOCIAL SECURITY

June 30, 2020

December 31, 2019

Salaries and social security....................................................................

2,782

2,976

Bonuses and incentives provision..........................................................

2,283

3,468

Vacation provision ..................................................................................

4,044

3,610

Miscellaneous.........................................................................................

191

150

9,300

10,204

32

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

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

20. LEASE LIABILITIES

As of June 30, 2020, the Group recorded non-current and current lease liabilities in the amount of 41,511 and 24,925, respectively.

The evolution of the Group's leases liabilities for the six-month period ended June 30, 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 ....................................................................................

4,302

Financial accretion ......................................................................................................

3,062

Leases decrease .........................................................................................................

(2,911)

Payments.....................................................................................................................

(10,059)

Exchange and translation differences, net..................................................................

10,262

Balance as of June 30, 2020.....................................................................................

66,436

  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

June 30, 2020

December 31, 2019

Interest rate (1)

Maturity

Noncurrent

Current

Noncurrent

Current

Pesos:

Negotiable obligations(4) .................

16.50%

-

35.16%

2020-2024

12,274

31,987

8,619

27,481

Export pre-financing .......................

37.00%

2020

-

2,784

-

-

Loans ..............................................

23.74%

-

50.89%

2020-2024

4,276

9,885

-

3,687

Account overdraft ...........................

31.50%

-

36.00%

2020

-

1,691

-

2,103

16,550

46,347

8,619

33,271

Currencies other than the Peso:

Negotiable obligations(2)(3) ..............

0.00%

-

10.00%

2020-2047

384,283

84,049

375,560

13,279

Export pre-financing(5) ....................

3.98%

-

8.49%

2020-2022

10,554

29,152

10,762

33,100

Imports financing ............................

5.71%

-

8.38%

2020

-

5,589

-

17,876

Loans ..............................................

3.09%

-

7.75%

2020-2026

4,189

30,687

24,710

9,583

399,026

149,477

411,032

73,838

415,576

195,824

419,651

107,109

  1. Nominal annual interest rate as of June 30, 2020.
  2. Disclosed net of 67 and 326 corresponding to YPF's own NO repurchased through open market transactions, as of June 30, 2020 and December 31, 2019, respectively.
  3. Includes 15,011 and 4,643 as of June 30, 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 June 30, 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 June 30, 2020, it includes 1,583 which accrue a 7.50% 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 six-month period ended on June 30, 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 .....................................................................................................

81,588

Payments of loans .......................................................................................................

(79,057)

Payments of interest....................................................................................................

(29,587)

Accrued interest(1)........................................................................................................

28,550

Net exchange differences and translation ..................................................................

83,190

Result from net monetary position(2) ...........................................................................

(44)

Balance as of June 30, 2020.....................................................................................

611,400

  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.

33

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

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

21. LOANS (Cont.)

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

June 30, 2020

December 31, 2019

Interest rate(3)

Principal

Month

Year

Principal value

Ref.

Class

Maturity

Noncurrent

Current

Noncurrent

Current

YPF

-

1998

US$

15

(1)

(6)

-

Fixed

10.00%

2028

1,043

17

886

15

April...................................................

2013

$

2,250

(2) (4)

(6) (7)

Class XVII

-

-

-

-

-

-

1,217

June ..................................................

2013

$

1,265

(2) (4) (6)

Class XX

-

-

-

-

-

-

643

July....................................................

2013

US$

92

(2) (5) (6)

Class XXII

Fixed

3.50%

2020

-

858

-

729

April, february and october ................

2014/5/6

US$

1,522

(2) (4) (6)

Class XXVIII

Fixed

8.75%

2024

107,100

2,265

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%

25.30%

2024

667

223

667

279

February............................................

2015

$

950

(2) (6) (7)

Class XXXVI

-

-

-

-

-

-

1,161

April...................................................

2015

$

935

(2) (4) (6)

Class XXXVIII

-

-

-

-

-

-

349

April...................................................

2015

US$

1,500

(2)

(6)

Class XXXIX

Fixed

8.50%

2025

105,540

3,813

89,416

3,230

September.........................................

2015

$

1,900

(2) (6) (7)

Class XLI

BADLAR

25.20%

2020

-

676

-

719

September and december .................

2015/9

$

5,196

(2) (4) (6)

Class XLII

BADLAR plus 4%

29.20%

2020

-

5,604

-

5,952

October .............................................

2015

$

2,000

(2) (6) (7)

Class XLIII

BADLAR

24.31%

2023

2,000

93

2,000

183

March and January............................

2016/20

$

5,455

(2) (4) (6)

Class XLVI

BADLAR plus 6%

32.11%

2021

-

6,011

1,350

251

March ................................................

2016

US$

1,000

(2)

(6)

Class XLVII

Fixed

8.50%

2021

-

71,988

59,790

1,383

April...................................................

2016

US$

46

(2) (5) (6)

Class XLVIII

-

-

-

-

-

-

2,785

April...................................................

2016

$

535

(2)

(6)

Class XLIX

-

-

-

-

-

-

593

July....................................................

2016

$

11,248

(2) (6) (8)

Class L

BADLAR plus 4%

32.23%

2020

-

12,080

-

12,902

May ...................................................

2017

$

4,602

(2) (6) (8)

Class LII

Fixed

16.50%

2022

4,602

110

4,602

108

July and december ............................

2017

US$

1,000

(2)

(6)

Class LIII

Fixed

6.95%

2027

71,082

2,213

60,399

1,890

December..........................................

2017

US$

750

(2)

(6)

Class LIV

Fixed

7.00%

2047

52,153

148

44,311

126

June ..................................................

2019

US$

500

(6)

(9)

Class I

Fixed

8.50%

2029

35,015

20

29,748

17

December..........................................

2019

$

1,683

(6)

(9)

Class II

-

-

-

-

-

-

1,729

December, april, may and june..........

2019/20

$

3,708

(6)

(9)

Class III

BADLAR plus 6%

35.16%

2020

-

3,799

-

1,189

December..........................................

2019

US$

19

(5) (6) (9)

Class IV

Fixed

7.00%

2020

-

1,390

-

1,179

January .............................................

2020

$

2,112

(6)

(9)

Class V

BADLAR plus 5%

29.44%

2021

-

2,221

-

-

January and march............................

2020

$

5,006

(6)

(9)

Class VI

BADLAR plus 6%

30.44%

2021

5,005

275

-

-

January .............................................

2020

US$

10

(5) (6) (9)

Class VII

Fixed

5.00%

2021

-

701

-

-

March ................................................

2020

US$

9

(6)

(9)

Class VIII

Fixed

5.00%

2021

-

631

-

-

March ................................................

2020

US$

4

(6)

(9)

Class IX

Fixed

6.00%

2021

276

1

-

-

April...................................................

2020

$

994

(6)

(9)

Class X

BADLAR plus 3%

27.35%

2020

-

895

-

-

May ...................................................

2020

US$

93

(5) (6) (9)

Class XI

Fixed

0.00%

2021

6,560

-

-

-

June ..................................................

2020

US$

78

(5) (6) (9)

Class XII

Fixed

1.50%

2022

5,514

4

-

-

396,557

116,036

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 June 30, 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.

34

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

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

22. OTHER LIABILITIES

June 30, 2020

December 31, 2019

Noncurrent

Current

Noncurrent

Current

Extension of concessions.............................................

594

578

529

593

Liabilities for contractual claims(1) ................................

163

65

170

59

Miscellaneous...............................................................

-

852

4

658

757

1,495

703

1,310

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

23. ACCOUNTS PAYABLE

June 30, 2020

December 31, 2019

Noncurrent

Current

Noncurrent

Current

Trade payable and related parties(1)...........................

635

111,551

1,869

145,942

Guarantee deposits ....................................................

36

700

21

704

Payables with partners of JO .....................................

1,796

2,889

575

851

Miscellaneous .............................................................

-

1,603

-

1,098

2,467

116,743

2,465

148,595

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

24. REVENUES

For the six-month period

ended June 30,

2020

2019

Sales of goods and services ..............................................................................

314,439

295,049

Government incentives(1) ....................................................................................

4,330

5,476

Turnover tax........................................................................................................

(10,541)

(9,289)

308,228

291,236

  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 o Type of good or service

For the six-month period ended June 30, 2020

Central

Gas and

Administration

Upstream

Downstream

Power

and others

Total

Diesel .........................................................................................

-

110,825

-

-

110,825

Gasolines...................................................................................

-

59,619

-

-

59,619

Natural Gas(1).............................................................................

-

306

45,720

-

46,026

Crude Oil....................................................................................

-

5,868

-

-

5,868

Jet fuel .......................................................................................

-

12,068

-

-

12,068

Lubricants and by-products .......................................................

-

7,833

-

-

7,833

Liquefied Petroleum Gas ...........................................................

-

6,323

-

-

6,323

Fuel oil .......................................................................................

-

4,306

-

-

4,306

Petrochemicals ..........................................................................

-

9,533

-

-

9,533

Fertilizers ...................................................................................

-

7,650

-

-

7,650

Flours, oils and grains ...............................................................

-

14,071

-

-

14,071

Asphalts .....................................................................................

-

1,049

-

-

1,049

Goods for resale at gas stations ...............................................

-

1,674

-

-

1,674

Income from services ................................................................

-

-

-

1,308

1,308

Income from construction contracts ..........................................

-

-

-

4,277

4,277

Virgin naphtha ...........................................................................

-

3,285

-

-

3,285

Petroleum coke..........................................................................

-

2,437

-

-

2,437

LNG Regasification....................................................................

-

-

3,224

-

3,224

Other goods and services .........................................................

1,098

5,252

5,210

1,503

13,063

1,098

252,099

54,154

7,088

314,439

35

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

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

24. REVENUES (Cont.)

For the six-month period ended June 30, 2019

Central

Gas and

Administration

Upstream

Downstream

Power

and others

Total

Diesel .........................................................................................

-

96,550

-

-

96,550

Gasolines...................................................................................

-

63,677

-

-

63,677

Natural Gas(1).............................................................................

-

597

45,420

-

46,017

Crude Oil....................................................................................

-

7,295

-

-

7,295

Jet fuel .......................................................................................

-

19,523

-

-

19,523

Lubricants and by-products .......................................................

-

5,931

-

-

5,931

Liquefied Petroleum Gas ...........................................................

-

6,345

-

-

6,345

Fuel oil .......................................................................................

-

2,501

-

-

2,501

Petrochemicals ..........................................................................

-

9,816

-

-

9,816

Fertilizers ...................................................................................

-

3,005

-

-

3,005

Flours, oils and grains ...............................................................

-

8,196

-

-

8,196

Asphalts .....................................................................................

-

2,257

-

-

2,257

Goods for resale at gas stations ...............................................

-

1,910

-

-

1,910

Income from services ................................................................

-

-

-

1,623

1,623

Income from construction contracts ..........................................

-

-

-

5,564

5,564

Virgin naphtha ...........................................................................

-

1,074

-

-

1,074

Petroleum coke..........................................................................

-

2,987

-

-

2,987

LNG Regasification....................................................................

-

-

885

-

885

Other goods and services .........................................................

1,175

3,437

3,889

1,392

9,893

1,175

235,101

50,194

8,579

295,049

  1. Includes 32,841 and 30,450 corresponding to sales of natural gas produced by the Company for the six-month period ended June 30, 2020 and 2019, respectively.

o Sales Channels

For the six-month period ended June 30, 2020

Central

Gas and

Administration

Upstream

Downstream

Power

and others

Total

Gas Stations ..............................................................................

-

114,585

-

-

114,585

Power Plants .............................................................................

-

-

6,007

-

6,007

Distribution Companies .............................................................

-

-

13,194

-

13,194

Retail distribution of natural gas ................................................

-

-

12,266

-

12,266

Industries, transport and aviation ..............................................

-

44,623

14,559

-

59,182

Agriculture..................................................................................

-

41,307

-

-

41,307

Petrochemical industry ..............................................................

-

10,674

-

-

10,674

Trading.......................................................................................

-

21,182

-

-

21,182

Oil Companies ...........................................................................

-

12,160

-

-

12,160

Commercialization of liquefied petroleum gas ..........................

-

2,933

-

-

2,933

Other sales channels.................................................................

1,098

4,635

8,128

7,088

20,949

1,098

252,099

54,154

7,088

314,439

For the six-month period ended June 30, 2019

Central

Gas and

Administration

Upstream

Downstream

Power

and others

Total

Gas Stations ..............................................................................

-

113,921

-

-

113,921

Power Plants .............................................................................

-

230

6,694

-

6,924

Distribution Companies .............................................................

-

-

8,425

-

8,425

Retail distribution of natural gas ................................................

-

-

17,530

-

17,530

Industries, transport and aviation ..............................................

-

50,745

12,770

-

63,515

Agriculture..................................................................................

-

27,752

-

-

27,752

Petrochemical industry ..............................................................

-

10,739

-

-

10,739

Trading.......................................................................................

-

16,751

-

-

16,751

Oil Companies ...........................................................................

-

8,456

-

-

8,456

Commercialization of liquefied petroleum gas ..........................

-

2,809

-

-

2,809

Other sales channels.................................................................

1,175

3,698

4,775

8,579

18,227

1,175

235,101

50,194

8,579

295,049

  1. Target Market

Sales contracts in the domestic market resulted in 269,251 and 256,346 for the six-month period ended June 30, 2020 and 2019, respectively.

Sales contracts in the international market resulted in 45,188 and 38,703 for the six-month period ended June 30, 2020 and 2019, respectively.

36

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

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

24. REVENUES (Cont.)

  • Contract balances

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

June 30, 2020

December 31, 2019

Noncurrent

Current

Noncurrent

Current

Credits for contracts included in Trade Receivables ........................................

7,486

85,369

6,785

100,706

Contract assets..................................................................................................

-

442

-

203

Contract liabilities ..............................................................................................

-

6,085

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 six-month period ended on June 30, 2020 and 2019 the Group has recognized 4,448 and 2,651, 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 six-month period ended

June 30,

2020

2019

Inventories at beginning of year ...........................................................................

80,479

53,324

Purchases.............................................................................................................

79,014

87,660

Production costs(1) ................................................................................................

219,111

160,917

Translation effect ..................................................................................................

15,217

6,409

Adjustment for inflation(2) ......................................................................................

199

210

Inventories at end of the period............................................................................

(101,284)

(69,555)

292,736

238,965

  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.

37

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

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 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 six-month period ended June 30, 2020 and 2019:

For the six-month period ended June 30, 2020

Production

Administrative

Selling

Exploration

costs(3)

expenses

expenses

expenses

Total

Salaries and social security taxes ................................

17,211

4,883

2,644

186

24,924

(5)

Fees and compensation for services ...........................

1,207

4,464

(2)

792

71

6,534

Other personnel expenses ...........................................

4,240

421

208

22

4,891

Taxes, charges and contributions ................................

3,536

157

7,346

(1)

-

11,039

Royalties, easements and canons ...............................

19,644

-

52

37

19,733

Insurance......................................................................

2,207

136

138

-

2,481

Rental of real estate and equipment ............................

3,780

17

785

-

4,582

(4)

Survey expenses ..........................................................

-

-

-

210

210

Depreciation of property, plant and equipment ............

82,384

1,634

2,554

-

86,572

Amortization of intangible assets .................................

1,138

253

18

-

1,409

Depreciation of right-of-use assets ..............................

8,237

-

442

-

8,679

Industrial inputs, consumable materials and supplies .

9,479

37

154

21

9,691

Operation services and other service contracts...........

20,450

319

1,680

250

22,699

(4)

Preservation, repair and maintenance .........................

26,817

570

771

18

28,176

(4)

Unproductive exploratory drillings ................................

-

-

-

16

16

Transportation, products and charges .........................

11,393

1

8,126

-

19,520

(4)

Provision for doubtful trade receivables .......................

-

-

9,412

-

9,412

Publicity and advertising expenses ..............................

-

623

172

-

795

Fuel, gas, energy and miscellaneous ..........................

7,388

617

1,750

25

9,780

(4)

219,111

14,132

37,044

856

271,143

  1. Includes 4,769 corresponding to export withholdings.
  2. Includes 44 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 551.
  4. Includes 3,244 and 2,211 corresponding to short-term leases and to the lease charge related to the underlying asset return and/or use, respectively.
  5. Includes 756 corresponding to the Work and Production Assistance Program received in benefit of AESA an OPESSA. See Note 36.

For the six-month period ended June 30, 2019

Production

Administrative

Selling

Exploration

costs(3)

expenses

expenses

expenses

Total

Salaries and social security taxes ................................

13,493

3,406

1,768

302

18,969

Fees and compensation for services ...........................

1,111

2,627

(2)

461

13

4,212

Other personnel expenses ...........................................

3,665

362

191

34

4,252

Taxes, charges and contributions ................................

3,270

231

4,850

(1)

41

8,392

Royalties, easements and canons ...............................

19,203

-

52

35

19,290

Insurance......................................................................

1,026

61

59

-

1,146

Rental of real estate and equipment ............................

4,143

28

378

-

4,549

(4)

Survey expenses ..........................................................

-

-

-

426

426

Depreciation of property, plant and equipment ............

59,196

1,041

1,518

-

61,755

Amortization of intangible assets .................................

888

135

13

-

1,036

Depreciation of right-of-use assets ..............................

4,083

-

270

-

4,353

Industrial inputs, consumable materials and supplies .

9,384

87

109

25

9,605

Operation services and other service contracts...........

9,192

288

1,003

152

10,635

(4)

Preservation, repair and maintenance .........................

20,093

353

348

15

20,809

(4)

Unproductive exploratory drillings ................................

-

-

-

1,382

1,382

Transportation, products and charges .........................

9,195

1

6,650

-

15,846

(4)

Provision for doubtful trade receivables .......................

-

-

1,125

-

1,125

Publicity and advertising expenses ..............................

-

1,174

482

-

1,656

Fuel, gas, energy and miscellaneous ..........................

2,975

730

1,760

152

5,617

(4)

160,917

10,524

21,037

2,577

195,055

  1. Includes approximately 3,131 corresponding to export withholdings.
  2. Includes 44 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 448.
  4. Includes 2,723 and 656 corresponding to short-term leases and to the lease charge related to the underlying asset return and/or use, respectively.

38

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

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

27. OTHER NET OPERATING RESULTS

For the six-month period

ended June 30,

Result for sale of participation in areas....................................................................................

Lawsuits....................................................................................................................................

Insurance..................................................................................................................................

Construction incentive(4) ...........................................................................................................

Miscellaneous...........................................................................................................................

2020

2019

12,233

(1)

1,523

(2)

  1. (1,721)

3,189

(3)

-

-

51

332

(187)

15,323

(334)

  1. See Note 4.
  2. See Note 3 to the annual consolidated financial statements.
  3. Corresponds mainly to the total and definitive compensation for the damages that occurred in the Bandurria Sur and Loma La Lata Oeste areas.
  4. See Note 36.

28. NET FINANCIAL RESULTS

For the six-month period

ended June 30,

2020

2019

Financial income

Interest income .........................................................................................................................

2,652

2,451

Exchange differences...............................................................................................................

47,543

16,581

Financial accretion ...................................................................................................................

1,428

770

Total financial income ...........................................................................................................

51,623

19,802

Financial loss

Interest loss ..............................................................................................................................

(31,150)

(19,002)

Exchange differences...............................................................................................................

(28,699)

(6,239)

Financial accretion ...................................................................................................................

(7,965)

(5,422)

Total financial costs...............................................................................................................

(67,814)

(30,663)

Other financial results

Results on financial assets at fair value with changes in results .............................................

(5)

2,070

Results from derivative financial instruments ..........................................................................

(432)

142

Result from net monetary position ...........................................................................................

2,696

2,230

Results from transactions with financial assets .......................................................................

8,523

-

Total other financial results ..................................................................................................

10,782

4,442

Total net financial results ......................................................................................................

(5,409)

(6,419)

29. INVESTMENTS IN JOINT OPERATIONS

The assets and liabilities as of June 30, 2020 and December 31, 2019, and expenses for the six-month period ended on June 30, 2020 and 2019, of JO and other agreements in which the Group participates are as follows:

June 30, 2020

December 31, 2019

Noncurrent assets(1) .................................................................................................................

252,410

221,219

Current assets ..........................................................................................................................

3,947

8,723

Total assets ..............................................................................................................................

256,357

229,942

Noncurrent liabilities ................................................................................................................

20,387

17,754

Current liabilities .......................................................................................................................

17,409

27,641

Total liabilities ...........................................................................................................................

37,796

45,395

For the six-month period ended June 30,

2020

2019

Production cost.........................................................................................................................

39,280

28,891

Exploration expenses ...............................................................................................................

28

27

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

39

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

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

30. SHAREHOLDERS' EQUITY

The Company's subscribed capital as of June 30, 2020, is 3,924 and 9 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 June 30, 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 section 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 six-month period

ended June 30,

2020

2019

Net loss.....................................................................................................

(78,418)

(10,869)

Average number of shares outstanding ...................................................

392,396,730

392,251,094

Basic and diluted earnings per share.......................................................

(199.84)

(27.71)

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

40

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

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 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 six-month period ended June 30, 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.

On June 23, 2020, the Court hearing the case issued a decision which settled the issues pending resolution related to the Discovery process, as well as other issues raised by the parties to the process.

On July 21, 2020, the Liquidating Trust submitted the schedule agreed by the parties to the process to the Court hearing the case.

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.

33.a) Contingent liabilities

The recent events of the six-month period ended on June 30, 2020 are described below:

33.a.1) Contentious claims

  • Petersen Energía Inversora, S.A.U and Petersen Energía, S.A.U. companies (collectively, "Petersen")

On May 20, the Provincial Court of Madrid dismissed the appeal filed by the Company and confirmed the jurisdiction of the Commercial Court No. 3 of Madrid in the proceedings. YPF is analyzing the best course of action in the light of the aforementioned decision.

On June 5, 2020, the District Court rejected the motions to dismiss based on the grounds of "forum non conveniens" filed both by the Argentine Republic and YPF and requested the parties to the process to propose how they consider the proceedings should be handled.

On June 26, 2020, both Petersen and Eton filed a motion suggesting how the proceedings should be handled.

On June 29, 2020, both the Argentine Republic and YPF filed a motion suggesting how the proceedings should be handled.

41

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

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

33. CONTINGENT ASSETS AND LIABILITIES (Cont.)

On July 1, 2020, the District Court summoned the parties to a telephone conference held on July 9, 2020.

On July 13, 2020, the District Court issued a resolution ordering the parties to the process to proceed to the discovery "of facts" and the discovery "of experts".

On July 17, 2020, Petersen and Eton together with YPF and the Argentine Republic submitted to the District Court a proposal with a schedule of the next steps for the process.

On July 20, 2020, the District Court accepted the schedule proposed by the parties.

As of the date of issuance of these consolidated financial statements, there are no elements in YPF's possession that allow quantifying the possible impact that this claim could have on the Company.

The Company categorically rejects the claims asserted in the complaint and will file the necessary legal remedies and exercise defensive measures in accordance with the applicable legal procedure to defend their rights.

  • Eton Park Capital Management, L.P., Eton Park Master Fund, LTD. y Eton Park Fund, L.P. (jointly referred to as "Eton Park")

On June 5, 2020, the District Court rejected the motions to dismiss based on the grounds of "forum non conveniens" filed both by the Argentine Republic and YPF and requested the parties to the process to propose how they consider the proceedings should be handled.

On June 26, 2020, both Petersen and Eton filed a motion suggesting how the proceedings should be handled.

On June 29, 2020, both the Argentine Republic and YPF filed a motion suggesting how the proceedings should be handled.

On July 1, 2020, the District Court summoned the parties to a telephone conference held on July 9, 2020.

On July 10, 2020, both the Argentine Republic and YPF answered the complaint from Eton Park.

On July 13, 2020, the District Court issued a resolution ordering the parties to the process to proceed to the discovery "of facts" and the discovery "of experts".

On July 17, 2020, Petersen and Eton together with YPF and the Argentine Republic submitted to the District Court a proposal with a schedule of the next steps for the process.

On July 20, 2020, the District Court accepted the schedule proposed by the parties.

As of the date of issuance of these consolidated financial statements, there are no elements in YPF's possession that allow quantifying the possible impact that this claim could have on the Company.

The Company categorically rejects the claims asserted in the complaint and will file the necessary legal remedies and exercise defensive measures in accordance with the applicable legal procedure to defend their rights.

33.a.2) Claims related to the liquefaction barge charter agreement and the liquefaction services agreement with Exmar Energy Netherlands B.V. and Exmar Argentina S.A.U.

On July 15, 2020, Exmar Energy Netherlands B.V. and Exmar Argentina S.A.U. initiated two arbitrations before the London Court of International Arbitration ("LCIA") in connection with alleged due payments of YPF, and YPF´s Force Majeure declaration.

42

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

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

34. CONTRACTUAL COMMITMENTS

Contractual commitments are described in Note 33 to the annual consolidated financial statements. Updates for the six- month period ended June 30, 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 six-month period ended June 30, 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 6,233. These transactions were executed based on the market's general and regulatory framework. The net balance to be paid to CHNC as of June 30, 2020 is 51. Additionally, YPF has a overlift position with CHNC corresponding to the imbalance of crude oil production from Loma Campana of 3,303.

35. MAIN REGULATIONS AND OTHER

Main regulations and others are described in Note 34 to the annual consolidated financial statements. Updates for the six- month period ended June 30, 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 (which established the temporary procedure for shipment management in the Emergency Executive Committee) 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.

43

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

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 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.

On June 19, 2020, the Need and Urgency Decree No. 543/2020 was published in the BO, extending the term established in section 5 of Law No. 27,541 (that provided for the non-adjustment of gas and electricity rates) from its expiration and for an additional term of 180 calendar days, and replacing the first paragraph of section 1 of Decree No. 311/2020, establishing that companies providing electricity, gas, running water, fixed or mobile telephone and Internet and cable TV services, either by radioelectric or satellite link, may not interrupt or disconnect the respective services to users listed in section 3 of such Decree, in case of delay or lack of payment of 6 consecutive or alternate bills, due as from March 1, 2020, including users with disconnection notice in course.

Likewise, on June 19, 2020, and based on the Need and Urgency Decree No. 543/2020, the SE instructed producer companies to renew gas supply agreements with distribution companies until the expiration of the new term established by Decree No. 543/2020. YPF agreed to extend the term with the distribution companies until July 31, 2020 and sent new proposals to extend the effective term of such agreements through August 31, 2020.

Decree No. 1053/2018

Decree No. 1053/2018, issued by the PEN under Section 99 subsection 3 of the Argentine Constitution (Need and Urgency Decree) is effective from its publication date, and its approval by the Argentine Congress is regulated by Law No. 26,122, which requires the Standing Bicameral Committee to decide on the validity or invalidity of the Decree and submit a plenary opinion of both Congress Chambers for its express treatment, and establishes that need and urgency decrees will be considered to be repealed if they are rejected by both Chambers.

On July 14, 2020, the Standing Bicameral Committee issued its opinion declaring the invalidity of Decree No. 1053/2018 and submitted such opinion to both Chambers for their final decision on the matter. On July 23, 2020, the Chamber of Senators approved the opinion of the Standing Bicameral Committee which declared the nullity of Decree No. 1053/2018. The Chamber of Deputies has not yet issued its decision, and therefore, as of this date, the aforementioned Decree remains in force.

Even though on June 17, 2020, the SE had approved transfers to Distributors of the amounts corresponding to installments No. 2 to No. 7 under the scheme (corresponding to the Payment of the daily accumulated differences between the value of gas purchased by providers of the distribution service of natural gas through networks and the value of natural gas included in the tariff schemes effective from April 1, 2018 to March 31, 2019, exclusively generated by exchange rate variations and corresponding to natural gas volumes delivered in the same period), such transfers were never made and the SE is not expected to make such transfers until the validity or invalidity of the Decree is finally resolved, which depends on the Chamber of Deputies' decision expressly accepting or rejecting the Decree, as the case may be. Even though YPF´s rights have not been affected, the aforementioned impacts on the recoverability of the financial asset subject to the measure, as defined under IFRS. Therefore, YPF recorded an impairment charge of these receivables as of June 30, 2020, which amounts to 7,961.

YPF is analyzing possible measures to be adopted to defend its rights in the event of the Decree being repealed.

44

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

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

35. MAIN REGULATIONS AND OTHERS (Cont.)

  • 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 approriate 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 - Inflation adjustment 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.

35.b) Liquid hydrocarbons regulatory requirements

  • Decree 488/2020 - Determination of prices for billing crude oil deliveries in the domestic market

On May 19, 2020, Decree No. 488/2020 issued by the PEN (the "Decree") was published in the BO, establishing that crude oil deliveries made in the domestic market must be invoiced by producing companies and paid by refining and trading companies, taking the Medanito crude oil type price of US$ 45/Bbl as a reference, until December 31, 2020. This price will be adjusted for each crude type by quality and loading port using the same reference in accordance with ordinary practices. Such price will be applicable to payment of royalties in compliance with section 59 of Law No. 17,319. Should, during the effective term of the Decree, the price of the "ICE BRENT FIRST LINE" rise above US$ 45/Bbl for 10 consecutive days, considering to such end the average of the last 5 market rates published by "PLATTS CRUDE MARKETWIRE" under the heading "Futures", price-related provisions will be void.

In addition, the Decree provides that during the effective term, the producing companies are bound to maintain the activity and/or production levels registered during 2019, taking into consideration the current demand shrinkage of crude oil and its by-products, both in the domestic and international markets, caused by the COVID-19 pandemic, and always within the adequate and economic operation parameters set forth in section 31 of Law No. 17,319. Producing companies must apply an identical criteria in relation to sustaining effective contracts with regional service companies and maintaining the same workforce they had as of December 31, 2019, which shall be carried out within a consensual framework together with workers' organizations in order to jointly achieve working arrangements that improve efficiency, technology and production, in compliance with the best national and international practices in the hydrocarbon activity.

The SE will verify that producing companies meet the Annual Investment Plan (Section 12 Annex to Decree No. 1277/12) and will apply, if appropriate, the sanctions provided for in section 29 of such Annex.

45

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

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

35. MAIN REGULATIONS AND OTHERS (Cont.)

On the other hand, the Decree established that refining and trading companies must purchase their total crude oil demand to local producing companies. For integrated companies, the Decree stipulated that, should they need to buy crude oil in excess of their own and their associates' production, such purchases will be made based on similar parameters to those used in 2019. Integrated and refining companies, as well as trading companies will not be able to import products that are available for sale in the domestic market and/or for which there is effective local processing capacity.

Regarding tax increases on liquid fuels and carbon dioxide stipulated under section 7 of Annex to Decree No. 501/2018, and which correspond to adjustments for the first and second quarter of 2020, they will be applicable to unleaded gasoline, virgin naphtha and diesel from October 1, 2020.

The Decree also established that hydrocarbons (under the tariff items of the Mercosur Common Nomenclature ("NCM") outlined in its Annex) will pay export duties under a scheme that contemplates the price of the "ICE BRENT FIRST LINE" barrel (International Price). Such export duty rate will be 0% when the International Price equal or lower than US$ 45/Bbl, will range from 0.5% to 8% when the International Price is between US$ 45 and US$ 60/Bbl, and will be 8% when the International Price is equal or higher than US$ 60/Bbl.

The SE may simplify the Operation of the Registry of Export Transactions for low-demand products in the domestic market if export requests should significantly increase. It may also request assistance from the Secretariat of Domestic Commerce and any other competent body, city mayors and all municipalities of the country, to monitor compliance with the maximum prices for the sale of LNG bottles of 10, 12 and 15 kilograms.

The values of fines for default of the obligations arising from exploration permits and exploitation concessions which do not constitute grounds for expiration under the provisions of Law No. 17,319, are based on a minimum value of 22 m3 of national crude oil in the domestic market and a maximum of 2,200 m3 of the same hydrocarbon per each infringement.

35.c) Natural gas production incentive programs

  • Stimulus Program for Investments in Natural Gas Production Developments from Non-Conventional Reservoirs

On June 23, 2020, YPF answered the request from the Under-Secretariat of Energy, Mining and Hydrocarbons of Neuquén, requiring YPF to submit a readjustment proposal for the Investment Plan corresponding to La Ribera I and II concession area for the whole period covered by the Investment Plan (2018-2021). Based on the impact the new Coronavirus (COVID-

  1. and the quarantine decided as a consequence thereof has had on the Company and its activities, YPF stated to such body that is impossible for it to make a comprehensive readjustment proposal of the Investment Plan and required the approval of its readjustment as originally requested. As of the date of these condensed interim consolidated financial statements, the Under-Secretariat of Energy, Mining and Hydrocarbons of Neuquén has not answered YPF's petition.

46

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

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

35. MAIN REGULATIONS AND OTHERS (Cont.)

35.d ) Other regulatory requirements

  • CNV Regulatory Framework (N.T. 2013)

a) CNV General Resolution No. 622

  1. 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

  1. 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 June 30, 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.

47

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

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 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 June 30, 2020 and December 31, 2019 and transactions with the mentioned parties for the six-month period ended June 30, 2020 and 2019.

June 30, 2020

December 31, 2019

Other

Trade

Accounts

Contract

Other

Trade

Accounts

Contract

receivables

receivables

payable

liabilities

receivables

receivables

payable

liabilities

Current

Current

Current

Current

Current

Current

Current

Current

Joint Ventures:

YPF EE ........................

318

843

2,074

498

296

2,278

2,183

679

Profertil ........................

6

772

434

-

12

587

114

-

MEGA ..........................

-

1,047

214

-

-

2,995

350

-

Refinor .........................

-

937

3

-

-

956

123

-

Bizoy S.A. ....................

-

20

-

-

-

17

-

-

Petrofaro S.A. ..............

-

6

-

-

-

6

-

-

OLCLP .........................

50

6

149

-

56

59

70

-

374

3,631

2,874

498

364

6,898

2,840

679

Associates:

CDS .............................

-

124

-

-

-

1,063

-

-

YPF Gas ......................

30

316

94

-

90

317

73

-

Oldelval........................

-

2

557

-

-

77

401

-

Termap ........................

-

-

199

-

-

-

182

-

OTA .............................

10

-

19

-

9

-

14

-

OTC .............................

-

-

-

-

4

-

-

-

GPA .............................

-

-

257

-

-

-

99

-

Oiltanking.....................

-

1

299

-

-

-

198

-

Gas Austral S.A. ..........

-

19

1

-

-

12

1

-

40

462

1,426

-

103

1,469

968

-

414

4,093

4,300

498

467

8,367

3,808

679

For the six-month period ended June 30,

2020

2019

Purchases

Net interest

Purchases

Net interest

and

income

and

income

Revenues

services

(loss)

Revenues

services

(loss)

Joint Ventures:

YPF EE ............................................................

1,542

2,190

-

1,929

1,644

-

Profertil ............................................................

2,194

1,827

-

1,866

703

-

MEGA ..............................................................

6,013

947

-

5,317

510

-

Refinor .............................................................

932

297

-

1,273

109

(16)

Y-GEN I ...........................................................

-

-

-

5

-

-

Petrofaro S.A. ..................................................

-

-

-

152

23

-

OLCLP .............................................................

28

320

-

3

50

-

10,709

5,581

-

10,545

3,039

(16)

Associates:

CDS .................................................................

514

-

7

617

-

-

YPF Gas ..........................................................

1,067

109

3

1,045

114

93

Oldelval............................................................

56

1,359

2

97

907

-

Termap ............................................................

-

561

-

-

545

-

OTA .................................................................

1

26

-

-

30

-

GPA .................................................................

-

654

-

-

222

-

Oiltanking.........................................................

2

690

-

1

581

-

Gas Austral S.A. ..............................................

99

-

-

117

-

-

1,739

3,399

12

1,877

2,399

93

12,448

8,980

12

12,422

5,438

77

48

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

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 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)

For the six-month period

ended June 30,

Customers / Suppliers

Ref.

June 30, 2020

December 31, 2019

2020

2019

SGE.........................................................

(1) (16)

20,838

26,223

-

-

SGE.........................................................

(2) (16)

4,686

3,416

1,762

1,780

SGE.........................................................

(3) (16)

219

155

55

542

SGE.........................................................

(4) (16)

198

166

-

7

SGE.........................................................

(5) (16)

613

475

138

-

SGE.........................................................

(6) (16)

401

172

237

268

SGE.........................................................

(7) (16)

5,052

4,417

-

881

Ministry of Transport ...............................

(8) (16)

3,117

2,056

2,276

2,879

Secretariat of Industry.............................

(9) (16)

-

-

-

51

CAMMESA ..............................................

(10)

2,548

627

6,841

3,310

CAMMESA ..............................................

(11)

(1,260)

386

(2,899)

(1,557)

IEASA......................................................

(12)

6,857

5,041

5,138

5,130

IEASA......................................................

(13)

(685)

(505)

(55)

(64)

Aerolíneas Argentinas S.A. and Austral

Líneas Aéreas Cielos del Sur S.A. .........

(14)

4,316

5,033

4,126

6,873

ANSES ....................................................

(15)

-

-

756

-

  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. As of June 30, 2020, 1,647 have been charged to provision and 3,405 are disclosed net of liabilities with other natural gas producing companies. See Note 35.a.
  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, NLG and provision of regasification service of LNG in Escobar.
  13. The purchase of natural gas and crude oil.
  14. The provision of jet fuel and natural gas.
  15. Income recognized by the Work and Production Assistance Program received in benefit of AESA an OPESSA.
  16. 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.

49

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

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 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 six-month period ended June 30, 2020 and 2019:

For the six-month period

ended June 30,

2020

2019

Short-term employee benefits(1) .................................................

323

210

Share-based benefits ................................................................

92

44

Post-retirement benefits .............................................................

12

9

Termination benefits...................................................................

231

-

658

263

  1. Does not include Social Security contributions of 77 and 43 for the six-month period ended June 30, 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.

  1. Retirement plan
    The total charges recognized under the Retirement Plan amounted to approximately 107 and 78 for the six-month period ended June 30, 2020 and 2019, respectively.
  2. Objective performance bonus programs and performance evaluation programs
    The amount charged to expense related to the programs described was 1,581 and 1,586 for the six-month period ended June 30, 2020 and 2019, respectively.
  3. Share-basedbenefit plan
    The amount charged to expense in relation with the share-based plans, which are disclosed according to their nature, was 300 and 217 for the six-month period ended June 30, 2020 and 2019, respectively.
    During the six-month period ended on June 30, 2020, the Company has not repurchased its own shares. Likewise, during the six-month period ended on June 30, 2019, the Company has repurchased 411,623 of its own shares for an amount of 280, to comply with the share-based benefits plans mentioned in Note 2.b.10.iii) to the annual consolidated financial statements. The cost of such repurchase appears in the shareholders' equity under the name "Acquisition cost of treasury shares", while the nominal value and its adjustment from the monetary re-expression carried out according to the Previous Accounting Principles have been reclassified from the accounts "Subscribed capital" and "Adjustment to contributions" to the accounts "Treasury shares" and "Adjustment to treasury shares", respectively.

50

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

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

38. ASSETS AND LIABILITIES IN CURRENCIES OTHER THAN THE PESO

June 30, 2020

December 31, 2019

Amount in

Amount in

Exchange

currencies

Exchange

currencies

rate in

other than

rate in

other than

the Peso

force(1)

Total

the Peso

force(1)

Total

Noncurrent assets

Other receivables

U.S. dollar .......................................................................

1

70.26

81

1

59.69

60

Bolivian peso ..................................................................

14

10.09

140

14

8.58

119

Trade receivables

U.S. dollar .......................................................................

73

70.26

5,143

220

59.69

13,132

Total noncurrent assets...............................................

5,364

13,311

Current assets

Other receivables

U.S. dollar .......................................................................

223

70.26

15,634

276

59.69

16,474

Euro ................................................................................

4

78.87

280

4

66.85

267

Chilean peso...................................................................

6,570

0.09

591

5,241

0.08

419

Yen .................................................................................

106

0.65

69

151

0.55

83

Trade receivables

U.S. dollar .......................................................................

811

70.26

56,998

939

59.69

56,030

Chilean peso...................................................................

5,749

0.09

517

17,221

0.08

1,378

Investments in financial assets

U.S. dollar .......................................................................

116

70.26

8,119

140

59.69

8,370

Cash and cash equivalents

U.S. dollar .......................................................................

522

70.26

36,645

723

59.69

43,172

Chilean peso...................................................................

5,407

0.09

487

1,685

0.08

135

Bolivian peso ..................................................................

7

10.09

70

10

8.58

90

Total current assets .....................................................

119,410

126,418

Total assets ...................................................................

124,774

139,729

Noncurrent liabilities

Provisions

U.S. dollar .......................................................................

2,086

70.46

146,971

2,020

59.89

120,968

Lease liabilities

U.S. dollar .......................................................................

589

70.46

41,508

674

59.89

40,388

Loans

U.S. dollar .......................................................................

5,663

70.46

399,026

6,863

59.89

411,032

Other liabilities

U.S. dollar .......................................................................

11

70.46

757

12

59.89

699

Accounts payable

U.S. dollar .......................................................................

4

70.46

254

6

59.89

359

Total noncurrent liabilities ..........................................

588,516

573,446

Current liabilities

Provisions

U.S. dollar .......................................................................

59

70.46

4,163

59

59.89

3,555

Taxes payable

Chilean peso...................................................................

1,202

0.09

108

3,102

0.08

248

Salaries and social security

U.S. dollar .......................................................................

3

70.46

192

7

59.89

406

Lease liabilities

U.S. dollar .......................................................................

324

70.46

22,796

357

59.89

21,384

Loans

U.S. dollar .......................................................................

2,117

70.46

149,181

1,229

59.89

73,599

Chilean peso...................................................................

3,285

0.09

296

2,993

0.08

239

Other liabilities

U.S. dollar .......................................................................

21

70.46

1,495

22

59.89

1,310

Accounts payable

U.S. dollar .......................................................................

777

70.46

54,722

1,181

59.89

70,711

Euro ................................................................................

14

79.27

1,074

16

67.23

1,053

Chilean peso...................................................................

5,112

0.09

460

3,744

0.08

300

Bolivian peso ..................................................................

-

10.09

-

7

8.58

60

Yen .................................................................................

79

0.65

51

133

0.55

73

Total current liabilities .................................................

234,538

172,938

Total liabilities...............................................................

823,054

746,384

  1. Exchange rate in force at June 30, 2020 and December 31, 2019 according to BNA.

51

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

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

39. SUBSEQUENT EVENTS

Swap of NO

On July 2, 2020, YPF offered Class XIII NO denominated in US-Dollars, accruing interest at a fixed rate of 8.5% redeemable, maturing in 2025, for a nominal value of up to US$ 950 million and a payment of US$ 100 in cash for each US$ 1,000 in principal amount, to be issued in exchange for Class XLVII NO issued on March 23, 2016 for a nominal value of US$ 1,000 million, maturing in 2021.

Besides, on July 13, 2020, YPF announced certain changes related to the offering, offering Class XIII NO for a nominal value of up to US$ 925 million and a payment of US$ 125 in cash for each US$ 1,000 in principal amount.

On July 31, 2020, the offering finally expired. The nominal value of the Class XLVII NO submitted to the exchange amounted to US$ 587.3 million, representing a swap of 58.73%. As a result of the transaction, YPF issued Class XIII NO for US$ 542.8 million and paid approximately US$ 90 million in cash (including accrued and unpaid interests on Class XLVII NO).

Public securities and public debt restructuring

On August 4, 2020, the Argentine Government reached an agreement with the representatives of the Ad Hoc Group of Argentine Bondholders, Argentina's Creditors Committee and the Exchange Bondholder Group and other holders. Under the agreement, the Argentine Government will adjust certain payment dates contemplated for eligible bonds in its July 6, 2020 invitation, without increasing the aggregate amount of payments of principal and interest the Argentine Government commits to make. Moreover, the Argentine Government undertakes to adjust certain aspects of collective action clauses of eligible bonds. Finally, in order to execute the agreement, the Argentine Government extends the invitation expiration date to August 24, 2020.

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 June 30, 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

Disclaimer

YPF SA published this content on 14 August 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 August 2020 12:40:05 UTC


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Financials
Sales 2020 728 B 9 302 M 9 302 M
Net income 2020 -101 964 M -1 302 M -1 302 M
Net Debt 2020 574 B 7 328 M 7 328 M
P/E ratio 2020 -8,27x
Yield 2020 -
Capitalization 201 B 2 570 M 2 566 M
EV / Sales 2020 1,06x
EV / Sales 2021 0,87x
Nbr of Employees 20 317
Free-Float 49,0%
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Average target price 609,00 ARS
Last Close Price 511,00 ARS
Spread / Highest target 69,3%
Spread / Average Target 19,2%
Spread / Lowest Target -1,17%