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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 09-30-2020

11/18/2020 | 08:13am EST

YPF SOCIEDAD ANONIMA

CONDENSED INTERIM CONSOLIDATED

FINANCIAL STATEMENTS AS OF SEPTEMBER 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 SEPTEMBER 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 SEPTEMBER 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.

DNU

Need and Urgency Decree

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

(Amounts expressed in millions of Pesos)

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

September 30,

December 31,

Notes

2020

2019

ASSETS

Noncurrent Assets

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

8

44,228

37,179

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

9

1,198,888

1,069,011

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

10

61,417

61,391

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

11

92,149

67,590

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

17

2,676

1,583

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

13

12,764

11,789

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

14

8,473

15,325

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

1,420,595

1,263,868

Current Assets

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

12

104,272

80,479

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

24

426

203

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

13

29,670

36,192

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

14

111,317

118,077

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

7

16,765

8,370

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

15

59,641

66,100

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

322,091

309,421

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

1,742,686

1,573,289

SHAREHOLDERS' EQUITY

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

10,767

10,572

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

562,055

531,977

Shareholders' equity attributable to shareholders of the parent company

572,822

542,549

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

6,640

5,550

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

579,462

548,099

LIABILITIES

Noncurrent Liabilities

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

16

191,600

144,768

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

17

105,765

97,231

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

24

-

294

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

17

2,682

3,387

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

18

20

1,428

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

19

2,923

-

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

20

40,741

40,391

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

21

480,407

419,651

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

22

819

703

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

23

1,832

2,465

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

826,789

710,318

Current Liabilities

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

16

6,587

5,460

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

24

8,746

7,404

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

17

1,048

1,964

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

18

16,008

11,437

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

19

12,421

10,204

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

20

26,853

21,389

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

21

143,986

107,109

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

22

1,548

1,310

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

23

119,238

148,595

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

336,435

314,872

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

1,163,224

1,025,190

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

1,742,686

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 NINE-MONTH AND THREE-MONTH PERIOD ENDED SEPTEMBER 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 nine-month

For the three-month

period ended

period ended

September 30,

September 30,

Notes

2020

2019

2020

2019

Net income

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

24

481,713

471,685

173,485

180,449

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

25

(455,089)

(388,564)

(162,353)

(149,599)

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

26,624

83,121

11,132

30,850

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

26

(53,402)

(32,935)

(16,358)

(11,898)

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

26

(23,276)

(16,577)

(9,144)

(6,053)

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

26

(5,074)

(4,493)

(4,218)

(1,916)

Impairment of property, plant and equipment and intangible assets .

8-9

(58,834)

(41,429)

(1,405)

(41,429)

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

27

11,827

(513)

(3,496)

(179)

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

(102,135)

(12,826)

(23,489)

(30,625)

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

11

8,250

3,218

4,530

(296)

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

28

73,874

85,922

22,251

66,120

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

28

(101,200)

(64,630)

(33,386)

(33,967)

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

28

14,467

(284)

3,685

(4,726)

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

28

(12,859)

21,008

(7,450)

27,427

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

(106,744)

11,400

(26,409)

(3,494)

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

17

(7,285)

(34,423)

(8,923)

(9,049)

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

(114,029)

(23,023)

(35,332)

(12,543)

Other comprehensive income

Items that may be reclassified subsequently to profit or loss:

Translation differences from subsidiaries, associates and joint

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

(6,279)

(7,311)

(2,189)

(5,751)

Result from net monetary position in subsidiaries, associates and

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

6,242

5,630

2,480

1,287

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

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

145,234

192,799

45,888

144,672

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

145,197

191,118

46,179

140,208

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

31,168

168,095

10,847

127,665

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

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

(113,884)

(23,595)

(35,466)

(12,726)

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

(145)

572

134

183

Other comprehensive income for the period attributable to:

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

143,962

189,943

45,685

139,876

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

1,235

1,175

494

332

Total comprehensive income / (loss) for the period attributable

to:

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

30,078

166,348

10,219

127,150

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

1,090

1,747

628

515

Earnings per share attributable to shareholders of the parent

company:

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

31

(290.13)

(60.15)

(90.29)

(32.44)

  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 NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2020 AND 2019 (UNAUDITED)

(Amounts expressed in millions of Pesos)

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY

For the nine-month period ended September 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) .......................................................

-

-

-

-

368

-

-

-

368

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

4

7

(4)

(7)

(670)

714

(217)

-

(173)

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

-

-

-

-

-

-

-

-

-

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

-

-

-

-

-

-

-

-

-

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

-

-

-

-

-

-

-

-

-

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

3,928

6,092

5

9

(185)

891

(613)

640

10,767

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) .......................................................

-

-

-

-

-

-

368

-

368

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

-

-

-

-

-

-

(173)

-

(173)

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

-

1,200

(35,321)

50

-

34,071

-

-

-

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

-

-

-

-

143,962

-

143,962

1,235

145,197

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

-

-

-

-

-

(113,884)

(113,884)

(145)

(114,029)

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

2,007

3,700

8,934

550

660,748

(1)

(113,884)

572,822

6,640

579,462

  1. Includes 673,379 corresponding to the effect of the translation of the financial statements of YPF and, (35,970) 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 23,339 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 NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2020 AND 2019 (UNAUDITED) (Cont.) (Amounts expressed in millions of Pesos)

For the nine-month period ended September 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) ...............................................

-

-

-

-

371

-

-

-

371

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

(4)

(6)

4

6

-

(280)

-

-

(280)

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

5

7

(5)

(7)

(491)

446

(114)

-

(159)

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

3,924

6,085

9

16

(5)

177

(396)

640

10,450

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) ...............................................

-

-

-

-

-

-

371

-

371

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

-

-

-

-

-

-

(280)

-

(280)

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

-

-

-

-

-

-

(159)

-

(159)

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

-

-

-

-

189,943

-

189,943

1,175

191,118

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

-

-

-

-

-

(23,595)

(23,595)

572

(23,023)

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

2,007

2,500

44,255

500

487,063

(1)

(23,595)

523,180

4,904

528,084

  1. Includes 500,519 corresponding to the effect of the translation of the financial statements of YPF and, (28,991) 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 15,535 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 NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2020 AND 2019 (UNAUDITED) (Amounts expressed in millions of Pesos)

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOW

For the nine-month period

ended September 30,

2020

2019

Operating activities:

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

(114,029)

(23,023)

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

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

(8,250)

(3,218)

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

133,947

99,220

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

13,382

7,202

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

2,409

1,665

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

17,422

14,450

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

7,285

34,423

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

23,694

1,091

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

58,834

41,429

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

8,930

(13,560)

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

368

371

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

(3,189)

(249)

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

(12,233)

(965)

Result from debt exchange........................................................................................................................................

2,097

-

Result from financial instruments exchange .............................................................................................................

(1,330)

-

Changes in assets and liabilities:

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

18,510

(15,130)

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

9,147

(9,789)

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

(929)

(10,302)

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

(25,353)

22,255

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

2,042

2,288

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

5,270

2,167

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

212

699

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

(1,919)

(3,417)

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

(256)

175

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

1,922

656

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

2,494

811

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

3,034

758

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

(2,164)

(6,314)

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

141,347

143,693

Investing activities:(3)

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

(81,880)

(114,864)

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

-

(4,731)

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

30,885

957

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

(28,841)

-

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

15

452

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

13,867

319

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

(65,954)

(117,867)

Financing activities:(3)

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

(129,668)

(70,061)

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

(47,941)

(29,251)

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

102,684

70,916

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

-

(280)

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

(15,470)

(9,961)

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

(608)

(250)

Dividends paid ...............................................................................................................................................................

-

(2,300)

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

(91,003)

(41,187)

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

9,151

21,662

Net (decrease) / increase in cash and cash equivalents ........................................................................................

(6,459)

6,301

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

66,100

46,028

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

59,641

52,329

Net (decrease) / increase in cash and cash equivalents ........................................................................................

(6,459)

6,301

  1. Does not include exchange differences generated by cash and cash equivalents, which are disclosed separately in this statement.
  2. Includes 8,537 and 6,737 for the nine-month period ended September 30, 2020 and 2019, respectively, for payment of short-term leases and 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 nine-month period

ended September 30,

2020

2019

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

8,489

13,626

Hydrocarbon wells abandonment obligation costs' recalculation ................................................................................

-

(1,984)

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

4,245

25,091

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

2,830

1,246

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

707

125

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

-

738

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 SEPTEMBER 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 September 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 SEPTEMBER 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 September 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 nine-month period ended September 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 November 10, 2020.

These condensed interim consolidated financial statements corresponding to the nine-month period ended on September 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 nine-month period ended on September 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 SEPTEMBER 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 September 30, 2020, as specified in Note 2.b.26 to the annual consolidated financial statements.

Standards and interpretations issued as from January 1, 2020 by the IASB whose implementation is not mandatory as of the closing of these condensed interim consolidated financial statements and, therefore, have not been adopted by the Group

  • Amendments to IAS 1 - Classification of liabilities

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 in 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 SEPTEMBER 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 SEPTEMBER 30, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

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

  • Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 17 and IFRS 16 - Interest Rate Benchmark Reform Phase 2.

On August 2020, the IASB issued amendments applicable to fiscal years beginning on or after January 1, 2021, allowing for their early application.

The purpose of these amendments is to provide entities with practical solutions to deal with the effects of the transition to alternative benchmark interest rates, when they generate changes in contractual cash flows or in the hedging relationships.

The amendments issued take place in the following key areas:

-Financial assets, financial liabilities and lease liabilities: a practical solution was issued for financial assets and liabilities measured at amortized cost which are modified as a direct consequence of the interbank benchmark interest rate reform. As a practical solution, the IASB establishes that these amendments are not to be treated as specified under IFRS 9 for changes to contractual cash flows, but rather as established under such standard for assets and liabilities at variable rate. This accounting treatment comprises the prospective revaluation of these financial instruments at the revised effective interest rate. This only applies when the change is a direct consequence of the rate reform and the basis used to determine the cash flows is economically equivalent to the basis immediately preceding rate replacement. In the case of lease liabilities revalued based on an interest rate that is being replaced with an alternative interest rate, a similar treatment is proposed.

-Hedges: The IASB issued further practical solutions in addition to those issued in Phase 1, seeking to prevent the benchmark rate reform from discontinuing hedge accounting or the designation of a new relationship of this type. They are the hedging relationships (and related documentation) must be amended to reflect the effects on i) the hedged item, ii) the hedging instrument and iii) the hedged risk. Any valuation adjustments resulting from the amendments are recognized as part of the ineffectiveness.

-Disclosure: The information disclosed must allow the user to understand the nature and extent of the risks to which the entity is exposed and how those risks generated by the interbank benchmark rate reform will be managed. The progress and management of the transition to alternative benchmark rates is also required to be informed.

The Group is evaluating the impact the application of these modifications may have on its financial statements.

  • 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.

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 SEPTEMBER 30, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

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

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

Standard

Amended Subject

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 material 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 carry out 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.

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 SEPTEMBER 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.

Since the implementation of these measures, recurring sales of 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. During the month of October, due to the gradual recovery of activity, these declines are within the 30%, 15% and 90%, respectively. Despite the recovery since certain flexibilization of the 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.

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 SEPTEMBER 30, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

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

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 domestic level. 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.

As of September 30, 2020, based on the fact that the critical assumptions used to estimate the value in use of the mentioned CGUs have not had significant changes, and considering the sensitivities run, the Group has not recognized additional charges for impairment or recovery of such impairments.

  • 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% (50,722), 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 nine-month period ended on September 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.

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 SEPTEMBER 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 39), 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 nine-month period ended on September 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 Argentina 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".

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 SEPTEMBER 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 variation, on account of which the entity decided to operate with derivative financial instruments as a hedge following the accounting policy defined in Note 2.b.17) to the annual consolidated financial statements.

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

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 SEPTEMBER 30, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

5. FINANCIAL RISK MANAGMENT (Cont.)

  • 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.

Based on the restrictions established by the BCRA for access to the foreign exchange market, specifically since the publication of Communication No. 7,106 that refers to maturities of principal amounts of offshore debts and the issuance of debt securities denominated in foreign currency scheduled between October 15, 2020 and March 31, 2021, the Group is evaluating alternatives to meet its obligations.

Besides, several loans of the Group contain Covenants, which include certain financial commitments and a negative impact due to material adverse judgments, among others. The Group monitors compliance with the Covenants on a quarterly basis. As of September 30, 2020, the Group had exceeded the leverage ratio required under the Covenants, and therefore, even though there is no acceleration of maturities of due amounts and restrictions to refinance existing loans, the Group has certain limitations in its capacity to incur further debt. However, there are certain exceptions that might allow the Group certain flexibility to manage its debt.

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 September 30, 2020, financial creditors formally accepted to waive Metrogas the contractual obligation to comply with such financial ratio, which should not be lower than 3.00 and be kept not lower than 1.50 as of September 30, 2020.

  • 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 accounts receivables related to the Decree No. 1053/2018. See Note 35.a.

19

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 SEPTEMBER 30, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

6. SEGMENT INFORMATION

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

  • Upstream
    The Upstream segment carries out all activities relating to the exploration, development and production of oil and natural gas.
    Revenue is generated from (i) the sale of produced crude oil to the Downstream segment and, marginally, from its sale to third parties; (ii) the sale of produced gas to the Gas and Power segment.
  • Gas and Power
    The Gas and Power segment generates its revenue from the development of activities relating to: (i) the natural gas and LNG 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.

20

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 SEPTEMBER 30, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

6. SEGMENT INFORMATION (Cont.)

Upstream

For the nine-month period ended September 30, 2020

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

2,439

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

211,495

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

213,934

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

(86,188)

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

-

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

102,025

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

58,695

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

48,062

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

784,815

For the nine-month period ended September 30, 2019

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

1,969

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

204,357

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

206,326

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

(37,660)

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

-

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

82,129

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

40,561

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

90,993

As of December 31, 2019

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

742,850

Central

Administration

Consolidation

Gas and Power

Downstream

and Others

Adjustments(1)

Total

93,193

381,454

9,458

(4,831)

481,713

6,275

2,469

18,423

(238,662)

-

99,468

383,923

27,881

(243,493)

481,713

(8,389)

(3,915)

(15,685)

12,042

(102,135)

5,315

2,935

-

-

8,250

(2)

1,327

25,168

5,427

-

133,947

62

-

77

-

58,834

3,862

12,935

3,534

-

68,393

222,694

588,668

138,742

7,767

1,742,686

92,324

368,109

13,518

(4,235)

471,685

6,814

2,448

17,819

(231,438)

-

99,138

370,557

31,337

(235,673)

471,685

2,543

20,126

(8,878)

11,043

(12,826)

2,094

1,124

-

-

3,218

(2)

979

13,522

2,590

-

99,220

868

-

-

-

41,429

3,830

12,742

3,931

-

111,496

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.

21

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 SEPTEMBER 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 September 30, 2020 and December 31, 2019, and their allocation to their fair value levels:

As of September 30, 2020

Financial Assets

Level 1

Level 2

Level 3

Total

Investments in financial assets(1):

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

9,212

-

-

9,212

9,212

-

-

9,212

Cash and cash equivalents:

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

29,863

-

-

29,863

29,863

-

-

29,863

39,075

-

-

39,075

(1) Additionally, the Group has Treasury Bills as financial assets measured at amortized cost of 7,553 as of September 30, 2020.

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. 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. On the same date, the Argentine Government failed to pay interest coupons due on certain global bonds, among which were BONAR 2021. 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.

22

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 SEPTEMBER 30, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

7. FINANCIAL INSTRUMENTS BY CATEGORY (Cont.)

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. On August 18, 2020, the Argentine Government issued Decree No. 676/2020, amending the terms and conditions of the proposal in order to reflect the improvements agreed with the creditors under foreign law.

On August 31, 2020, the Argentine Government informed the results of the restructuring of the Public Securities issued under foreign law, announcing it had obtained the required consents to exchange and/or modify 99.01% of the total outstanding principal amount of all the series of eligible bonds issued under the 2005 and 2016 Indenture.

As a result of this deal, YPF exchanged its BONAR 2020 and BONAR 2021 bonds for the new Bonds 2029 and 2030, which are valued at fair value with changes in results, and recorded a gain of 1,330. (See Note 28).

Fair value estimates

From December 31, 2019 until September 30, 2020, there have been significant changes mainly in macroeconomic circumstances (mainly variations 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 nine-month period ended September 30, 2020, there were no transfers between the different hierarchies used to determine the fair value of the Group's financial instruments.

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

The estimated fair value of loans, considering unadjusted listed prices (Level 1) for NO and interest rates offered to the Group (Level 3) for the other financial loans remaining, amounted to 493,607 and 476,750 as of September 30, 2020 and December 31, 2019, respectively.

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

8. INTANGIBLE ASSETS

September 30, 2020

December 31, 2019

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

46,151

37,608

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

(1,923)

(429)

44,228

37,179

23

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 SEPTEMBER 30, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

8. INTANGIBLE ASSETS (Cont.)

The evolution of the Group's intangible assets for the nine-month period ended September 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..........................................................................................................

560

-

487

1,047

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

14,205

4,476

5,874

24,555

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

-

-

663

663

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

(1)

(313)

319

5

Accumulated amortization

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

1,877

-

532

2,409

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

9,566

-

5,595

15,161

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

-

-

157

157

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

-

-

-

-

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

66,700

20,818

31,646

119,164

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

45,733

-

27,280

73,013

Balance as of September 30, 2020...............................................................

20,967

20,818

4,366

46,151

  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.

Set forth below is the evolution of the provision for impairment of intangible assets for the nine-month period ended on September 30, 2020 and for the year ended December 31, 2019:

Provision for

impairment of

intangible assets

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

-

Increase charged to loss ..................................................................................

429

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

429

Increase charged to loss ..................................................................................

1,399

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

95

Balance as of September 30, 2020..................................................................

1,923

  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.

9. PROPERTY, PLANT AND EQUIPMENT

September 30, 2020

December 31, 2019

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

1,337,172

1,156,950

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

(8,411)

(6,610)

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

(129,873)

(81,329)

1,198,888

1,069,011

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 SEPTEMBER 30, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

9. PROPERTY, PLANT AND EQUIPMENT (Cont.)

Changes in Group's property, plant and equipment for the nine-month period ended September 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 .............................................

33

502

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

18,431

742,816

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

2,253

-

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

1,399

67,526

Accumulated depreciation

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

1,521

135,242

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

8,751

595,962

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

1,129

-

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

-

(7,010)

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

99,309

3,499,397

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

47,954

2,849,782

Balance as of September 30, 2020....

51,355

649,615

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

603

9

24,609

40,702

113

114

-

1,587

121

68,393

130,296

6,745

16,551

42,666

2,163

11,392

20,236

-

10,087

1,001,383

-

565

259

1,591

-

337

-

9,951

2,126

17,082

9,666

278

(19,228)

(86,528)

(9,020)

3,800

4,429

1,062

69

(26,547)

20,162

1,220

-

-

-

2,903

3,148

915

1,153

166,264

73,744

4,599

-

-

-

9,510

12,452

-

7,467

712,485

-

328

-

-

-

306

-

5,322

1,550

8,635

-

(226)

-

-

-

(2)

-

(52)

(5)

(7,295)

613,195

34,639

84,614

193,016

4,642

56,660

94,800

57,243

59,109

4,796,624

355,871

23,872

-

-

-

47,834

59,871

30,062

44,206

3,459,452

(1)

257,324

10,767

84,614

193,016

4,642

(2)

8,826

34,929

27,181

14,903

1,337,172

(4)

(5)

(7)

(7)

  1. Includes 25,447 and 22,343 of mineral property as of September 30, 2020 and December 31, 2019 respectively.
  2. As of September 30, 2020, there are 9 exploratory wells in progress. During the nine-month period ended on such date, 11 wells were transferred to properties with proven reserves in the mining property, wells and related equipment account and 4 wells were charged to exploratory expense.
  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 684 and 1,041 corresponding to short-term leases and the variable charge of leases related to the underlying asset return/use, respectively. Additionally, it includes 2,830 and 707 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.

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 SEPTEMBER 30, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

9. PROPERTY, PLANT AND EQUIPMENT (Cont.)

The Group capitalizes the financial cost of loans as part of the cost of the assets. For the nine-month period ended September 30, 2020 and 2019, the rate of capitalization was 9.93% and 10.24%, respectively, and the amount capitalized amounted to 615 and 678, respectively, for the period mentioned above.

Set forth below is the evolution of the provision for obsolescence of materials and equipment for the nine-month period ended on September 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 loss ...........................................................................

410

Decreases charged to profit ......................................................................

(22)

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

(48)

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

2,315

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

6,610

Increase charged to loss .............................................................................

9

Decreases charged to profit ......................................................................

(1)

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

(2)

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

1,795

Balance as of September 30, 2020 ..........................................................

8,411

Set forth below is the evolution of the provision for impairment of property, plant and equipment for the nine-month period ended on September 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 loss ...........................................................................

41,429

(1)

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

(17,435)

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

20,274

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

81,329

(3)

Increase charged to loss .............................................................................

57,435

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

(32,317)

(2)

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

23,426

Balance as of September 30, 2020 ..........................................................

129,873

  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.

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 SEPTEMBER 30, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

10. RIGHT-OF-USE ASSETS

The evolution of the Group's right-of-use assets for the nine-month period ended September 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 .....................................................................

10

1,930

2,175

97

33

4,245

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

272

6,465

9,039

1,249

3,611

20,636

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

4

-

-

201

-

205

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

(90)

(5,610)

(1,710)

-

-

(7,410)

Accumulated depreciation

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

233

5,491

4,977

690

4,821

16,212

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

94

2,467

1,624

229

1,453

5,867

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

3

-

-

43

-

46

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

(10)

(3,960)

(505)

-

-

(4,475)

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

1,222

26,071

42,470

6,970

16,826

93,559

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

573

10,680

9,837

1,739

9,313

32,142

Balance as of September 30, 2020 .............

649

15,391

32,633

5,231

7,513

61,417

(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 13,382 that were charged to "Depreciation of right-of-use assets" in the comprehensive statement of income (see Note 26) and 2,830 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.

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 SEPTEMBER 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 September 30, 2020 and December 31, 2019:

September 30,

December 31,

2020

2019

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

8,476

6,419

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

83,685

61,183

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

(12)

(12)

92,149

67,590

The main movements during the nine-month period ended September 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 .........................................................

8,250

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

17,095

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

(2,494)

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

1,708

Balance as of September 30, 2020 ....................................................................................

92,149

  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.

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 SEPTEMBER 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 nine-month period ended September 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 nine-month period

For the nine-month period

ended September 30,

ended September 30,

2020

2019

2020

2019

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

1,032

1,350

7,218

1,868

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

1,744

635

17,059

17,684

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

2,776

1,985

24,277

19,552

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

September 30,

December 31,

2020(1)

2019(1)

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

130,917

96,219

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

26,368

26,622

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

157,285

122,841

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

65,151

57,799

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

29,911

19,503

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

95,062

77,302

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

62,223

45,539

For the nine-month period ended

September 30,

2020(1)

2019(1)

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

14,486

10,910

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

(6,757)

(5,198)

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

7,729

5,712

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

6,404

4,762

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

204

287

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

(160)

(831)

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

6,448

4,218

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

(2,448)

(2,055)

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

4,000

2,163

  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.

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 SEPTEMBER 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,

09-30-20

15

-

99

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.

09-30-20

61,664

(5)

(16,354)

100.00%

Operadora de Estaciones de

Common

$

1

163,701,747

Commercial management of YPF's gas stations

Macacha Güemes 515, Buenos Aires, Argentina

09-30-20

164

(703)

4,592

99.99%

Servicios S.A.

A-Evangelista S.A.

Common

$

1

306,818,702

Engineering and construction services

Macacha Güemes 515, Buenos Aires, Argentina

09-30-20

307

(2,731)

(3,585)

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,

09-30-20

569

(1,146)

17,530

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

09-30-20

3,474

(297)

2,460

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

09-30-20

459

46

3,383

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

09-30-20

236

(78)

15

100.00%

Mineras S.A.

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

structures and processing of products related to mining

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 SEPTEMBER 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:

09-30-2020

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

47,568

Compañía Mega S.A.(6)

Common

$

1

244,246,140

6,705

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 Av. Córdoba 111, P 14°, Buenos Aires, Argentina

09-30-20

3,747

4,000

62,223

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

09-30-20

643

1,148

17,694

38.00%

5,211

gas liquids

Profertil S.A.(6)

Common

$

1

391,291,320

14,514

-

Production and marketing of fertilizers

Manuela Sáenz 323, P 8°, Buenos Aires, Argentina

06-30-20

783

1,808

29,392

50.00%

10,778

Refinería del Norte S.A.

Common

$

1

45,803,655

1,998

-

Refining

Maipú 1, P 2º, Buenos Aires, Argentina

06-30-20

92

(732)

3,930

50.00%

1,881

Oleoducto Loma Campana-Lago

Common

$

1

738,139,164

1,099

738

Construction and exploitation of a pipeline, oil transport

Macacha Güemes 515, Buenos Aires, Argentina

09-30-20

868

(158)

954

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

11,310

4,348

Production and generation of electric energy

Maipú 1, Buenos Aires, Argentina

09-30-20

8,558

4,933

22,648

50.00%

6,799

83,194

6,171

60,813

Associates:

Oleoductos del Valle S.A.

Common

$

10

4,072,749

2,602

-

Oil transportation by pipeline

Maipú 1210, P 8º, Buenos Aires, Argentina

06-30-20

110

1,059

5,970

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,

06-30-20

14

280

3,107

33.15%

711

S.A.

Argentina

Oiltanking Ebytem S.A.(6)

Common

$

10

351,167

971

-

Hydrocarbon transportation and storage

Terminal Marítima Puerto Rosales - Province of

09-30-20

12

710

3,056

30.00%

871

Buenos Aires, Argentina.

Central Dock Sud S.A.

Common

$

0.01

11,869,095,145

1,800

-

Electric power generation and bulk marketing

San Martin 140, P 2°, Buenos Aires, Argentina

09-30-20

1,231

594

17,918

10.25%

(4)

1,542

YPF Gas S.A.

Common

$

1

59,821,434

1,369

-

Gas fractionation, bottling, distribution and transport for

Macacha Güemes 515, P 3º, Buenos Aires,

06-30-20

176

559

5,727

33.99%

965

industrial and/or residential use

Argentina

Other companies:

Other (3)

-

-

-

-

1,195

648

-

-

-

-

-

-

-

922

8,967

648

6,789

92,161

6,819

67,602

  1. Corresponds to cost, 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 Trasandino (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.

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 SEPTEMBER 30, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

12. INVENTORIES

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

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

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

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

September 30, 2020

December 31, 2019

64,018

50,563

33,956

24,756

2,658

2,259

3,640

2,901

104,272

(1)

80,479

(1)

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

13. OTHER RECEIVABLES

September 30, 2020

December 31, 2019

Noncurrent

Current

Noncurrent

Current

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

442

2,624

455

2,706

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

9,368

7,192

6,896

6,076

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

739

820

2,435

3,288

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

2

1,298

2

640

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

693

2,009

603

2,370

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

16

334

29

596

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

-

9,715

-

10,896

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

2,651

3,048

2,248

7,932

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

-

970

-

498

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

14

1,731

45

1,255

13,925

29,741

12,713

36,257

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

(1,161)

(71)

(924)

(65)

12,764

29,670

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

September 30, 2020

December 31, 2019

Noncurrent

Current

Noncurrent

Current

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

10,057

127,032

15,325

124,657

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

(1,584)

(15,715)

-

(6,580)

8,473

111,317

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 nine-month period ended on September 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)

8,649

(2)

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

-

(566)

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

-

509

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

-

(101)

Reclassifications.....................................................................................

(644)

644

Balance as of September 30, 2020 .....................................................

1,584

15,715

  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 8,433 corresponding to credits with natural gas distributors for the accumulated daily differences pursuant to Decree No. 1053/2018. See Note 35.a.

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 SEPTEMBER 30, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

15. CASH AND CASH EQUIVALENTS

September 30, 2020

December 31, 2019

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

11,603

6,983

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

18,175

52,079

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

29,863

7,038

59,641

66,100

  1. Includes 8,537 and 10,043 of fixed-term deposits and other investments with the BNA as of September 30, 2020 and December 31, 2019, respectively.
  2. See Note 7.

16. PROVISIONS

Changes in the Group's provisions for the nine-month period ended September 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.......................

7,213

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

(914)

Amounts incurred due to payments/utilization .

(22)

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

6,123

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

(30)

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

(558)

Balance as of September 30, 2020...............

55,645

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)

144

1,369

-

7,983

-

16,565

144

(659)

(78)

-

-

-

(992)

(659)

(88)

-

(844)

-

(965)

(22)

(1,897)

326

364

9

27,275

628

33,762

963

-

-

-

-

-

(30)

-

683

(939)

939

(954)

954

(2,451)

2,576

1,691

4,544

2,014

131,411

2,882

191,600

6,587

  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. Updates for the nine-month period ended September 30, 2020 are described below:

  • Claims arising from restrictions in the natural gas market
  1. Transportadora de Gas del Norte S.A. ("TGN")

On October 16, 2020, YPF was notified of the judgment rendered by the lower court, which resolved:

  1. to declare abstract the claim to fulfill the firm gas transportation agreement (the "Agreement"), filed by TGN;
  2. to partially grant the claim filed in the case for fulfillment of the Agreement, and order YPF to pay for unpaid invoices, in an amount to be determined by the designated accounting expert at the stage of enforcement of judgment, plus interest and court fees;
  3. to admit the claim for damages and order YPF to pay the amount of US$ 231 million plus interest and court fees.

On October 22, 2020, YPF filed an appeal against the lower court's decision, which, as of the date of these financial statements has not been granted.

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 SEPTEMBER 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 nine-month period ended September 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 nine-month period ended September 30, 2020 and 2019 is as follows:

For the nine-month period

ended September 30,

2020

2019

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

(798)

(1,144)

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

(6,487)

(12,440)

(1)

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

(7,285)

(13,584)

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

-

(16,239)

(2)

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

-

(4,600)

(3)

(7,285)

(34,423)

  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 nine-month period ended September 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 nine-month period

ended September 30,

2020

2019

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

(106,744)

11,400

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

30%

30%

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

32,023

(3,420)

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

(43,376)

(17,244)

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

7,513

9,284

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

(5,842)

(10,139)

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

2,475

965

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

(5,449)

8,837

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

-

(5,175)

Interest related to the payment facility plan for cost deduction for wells abandonment ..........................

-

1,333

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

5,371

1,975

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

(7,285)

(13,584)

  1. Includes the effect of tax inflation adjustments.
  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 1,048 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 2,682 as non-current income tax payable, which mainly include 2,676 corresponding to the 35 installments related to the mentioned plan.

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 SEPTEMBER 30, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

17. INCOME TAX (Cont.)

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

September 30,

December 31,

2020

2019

Deferred tax assets

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

11,940

5,344

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

76,690

52,443

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

1,234

937

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

89,864

58,724

Deferred tax liabilities

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

(126,494)

(110,704)

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

(61,576)

(38,177)

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

(4,883)

(5,491)

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

(192,953)

(154,372)

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

(103,089) (1)

(95,648) (1)

  1. Includes (1,207) and (1,523) as of September 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 September 30, 2020 and December 31, 2019, there are no significant deferred tax assets which are not recognized.

As of September 30, 2020 and December 31, 2019, the Group has classified as deferred tax assets 2,676 and 1,583, respectively, and as deferred tax liability 105,765 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 September 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

September 30, 2020

December 31, 2019

Non

Non

current

Current

current

Current

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

-

2,903

-

3,532

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

-

1,628

-

2,070

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

-

2,943

-

1,268

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

-

4,336

-

635

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

-

366

-

512

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

20

3,832

1,428

3,420

20

16,008

1,428

11,437

19. SALARIES AND SOCIAL SECURITY

September 30, 2020

December 31, 2019

Non current

Current

Non current

Current

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

-

3,120

-

2,976

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

-

3,114

-

3,468

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

-

4,422

-

3,610

Other employee benefits .............................................................................

2,923

1,765

-

150

2,923

12,421

-

10,204

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 SEPTEMBER 30, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

20. LEASE LIABILITIES

As of September 30, 2020, the Group recorded non-current and current lease liabilities in the amount of 40,741 and 26,853, respectively.

The evolution of the Group's leases liabilities for the nine-month period ended September 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 ....................................................................................

4,245

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

4,662

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

(2,993)

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

(15,470)

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

15,360

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

10

Balance as of September 30, 2020 ..........................................................................

67,594

  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

September 30, 2020

December 31, 2019

Interest rate (1)

Maturity

Noncurrent

Current

Noncurrent

Current

Pesos:

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

16.50%

-

35.73%

2020-2024

7,102

17,669

8,619

27,481

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

37.00%

2020

-

4,726

-

-

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

37.48%

-

57.08%

2020-2024

5,140

10,772

-

3,687

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

33.00%

-

36.00%

2020

-

1,051

-

2,103

12,242

34,218

8,619

33,271

Currencies other than the Peso:

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

0.00%

-

10.00%

2020-2047

451,542

47,370

375,560

13,279

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

3.98%

-

8.19%

2020-2022

11,412

26,492

10,762

33,100

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

6.29%

-

8.38%

2020

-

3,493

-

17,876

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

0.88%

-

6.70%

2020-2027

5,211

32,413

24,710

9,583

468,165

109,768

411,032

73,838

480,407

143,986

419,651

107,109

  1. Nominal annual interest rate as of September 30, 2020.
  2. Disclosed net of 326 corresponding to YPF's own NO repurchased through open market transactions as of December 31, 2019.
  3. Includes 15,309 and 4,643 as of September 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 4,602 and 15,850 as of September 30, 2020 and December 31, 2019, respectively, 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 September 30, 2020, it includes 3,005 which accrue a 6.64% 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 nine-month period ended on September 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 .....................................................................................................

102,684

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

(129,668)

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

(47,941)

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

43,486

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

127,179

Result from debt exchange .........................................................................................

2,097

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

(204)

Balance as of September 30, 2020 ..........................................................................

624,393

  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.

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 SEPTEMBER 30, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

21. LOANS (Cont.)

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

September 30, 2020

December 31, 2019

Interest rate(3)

Principal

Month

Year

Principal value

Ref.

Class

Maturity

Noncurrent

Current

Noncurrent

Current

-

1998

US$

15

(1)

(6)

-

Fixed

10.00%

2028

1,127

47

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

-

-

-

-

-

-

729

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

2014/5/6

US$

1,522

(2) (4) (6)

Class XXVIII

Fixed

8.75%

2024

115,806

3,052

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%

29.83%

2024

500

170

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

114,120

1,671

89,416

3,230

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

2015

$

1,900

(2) (6) (7)

Class XLI

-

-

-

-

-

-

719

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

2015/9

$

5,196

(2) (4) (6)

Class XLII

-

-

-

-

-

-

5,952

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

2015

$

2,000

(2) (6) (7)

Class XLIII

BADLAR

27.13%

2023

2,000

241

2,000

183

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

2016/20

$

5,455

(2) (4) (6)

Class XLVI

BADLAR plus 6%

35.72%

2021

-

5,587

1,350

251

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

2016

US$

1,000

(2)

(6)

Class XLVII

Fixed

8.50%

2021

-

31,446

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

-

-

-

-

-

-

12,902

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

2017

$

4,602

(2) (6) (8)

Class LII

Fixed

16.50%

2022

4,602

299

4,602

108

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

2017

US$

1,000

(2)

(6)

Class LIII

Fixed

6.95%

2027

76,864

1,032

60,399

1,890

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

2017

US$

750

(2)

(6)

Class LIV

Fixed

7.00%

2047

56,397

1,159

44,311

126

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

2019

US$

500

(6)

(9)

Class I

Fixed

8.50%

2029

37,862

833

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%

35.73%

2020

-

3,793

-

1,189

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

2019

US$

19

(5) (6) (9)

Class IV

Fixed

7.00%

2020

-

1,506

-

1,179

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

2020

$

2,112

(6)

(9)

Class V

BADLAR plus 5%

34.65%

2021

-

2,245

-

-

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

2020

$

5,006

(6)

(9)

Class VI

BADLAR plus 6%

35.65%

2021

-

5,334

-

-

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

2020

US$

10

(5) (6) (9)

Class VII

Fixed

5.00%

2021

-

759

-

-

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

2020

US$

9

(6)

(9)

Class VIII

Fixed

5.00%

2021

-

683

-

-

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

2020

US$

4

(6)

(9)

Class IX

Fixed

6.00%

2021

299

1

-

-

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

2020

US$

93

(5) (6) (9)

Class XI

Fixed

0.00%

2021

7,093

-

-

-

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

2020

US$

78

(5) (6) (9)

Class XII

Fixed

1.50%

2022

5,963

4

-

-

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

2020

US$

543

(6)

(9)

Class XIII

Fixed

8.50%

2025

36,011

5,177

-

-

458,644

65,039

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 September 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.

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 SEPTEMBER 30, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

21. LOANS (Cont.)

Exchange 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 an adhesion 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).

YPF assessed whether the instruments subject to exchange were substantially different, considering both qualitative (e.g., currency, term, and rate) and quantitative aspects (if the discounted present value of the cash flows under the new terms, including any fees paid net of any fees received, and discounted using the original effective interest rate, is at least 10% different from the discounted present value of the remaining cash flows of the original financial liability). In this regard, the Company recognizes the exchange of the NO as a modification due to the fact that the instruments subject to exchange are not substantially different. As a result of the transaction, YPF recognized a loss of 2,097 (see Note 28).

22. OTHER LIABILITIES

September 30, 2020

December 31, 2019

Noncurrent

Current

Noncurrent

Current

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

642

571

529

593

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

177

70

170

59

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

-

907

4

658

819

1,548

703

1,310

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

23. ACCOUNTS PAYABLE

September 30, 2020

December 31, 2019

Noncurrent

Current

Noncurrent

Current

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

654

112,792

1,869

145,942

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

24

763

21

704

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

1,154

4,069

575

851

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

-

1,614

-

1,098

1,832

119,238

2,465

148,595

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

24. REVENUES

For the nine-month period

ended September 30,

2020

2019

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

492,111

477,752

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

6,732

9,065

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

(17,130)

(15,132)

481,713

471,685

  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.

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 SEPTEMBER 30, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

24. REVENUES (Cont.)

Breakdown of revenues o Type of good or service

For the nine-month period ended September 30, 2020

Central

Gas and

Administration

Upstream

Downstream

Power

and others

Total

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

-

172,168

-

-

172,168

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

-

86,644

-

-

86,644

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

-

513

79,340

-

79,853

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

-

6,837

-

-

6,837

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

-

13,179

-

-

13,179

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

-

13,296

-

-

13,296

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

-

9,528

-

-

9,528

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

-

10,205

-

-

10,205

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

-

15,086

-

-

15,086

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

-

13,842

-

-

13,842

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

-

24,655

-

-

24,655

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

-

2,007

-

-

2,007

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

-

2,548

-

-

2,548

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

-

-

-

2,163

2,163

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

-

-

-

6,383

6,383

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

-

4,981

-

-

4,981

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

-

3,925

-

-

3,925

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

-

-

4,534

-

4,534

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

2,494

8,852

7,371

1,560

20,277

2,494

388,266

91,245

10,106

492,111

For the nine-month period ended September 30, 2019

Central

Gas and

Administration

Upstream

Downstream

Power

and others

Total

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

-

154,363

-

-

154,363

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

-

99,158

-

-

99,158

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

-

1,025

81,072

-

82,097

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

-

9,650

-

-

9,650

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

-

30,867

-

-

30,867

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

-

9,471

-

-

9,471

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

-

9,989

-

-

9,989

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

-

4,569

-

-

4,569

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

-

15,171

-

-

15,171

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

-

5,156

-

-

5,156

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

-

14,119

-

-

14,119

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

-

3,689

-

-

3,689

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

-

3,201

-

-

3,201

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

-

-

-

2,525

2,525

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

-

-

-

9,372

9,372

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

-

2,585

-

-

2,585

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

-

4,602

-

-

4,602

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

-

-

1,760

-

1,760

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

2,008

4,645

6,336

2,419

15,408

2,008

372,260

89,168

14,316

477,752

  1. Includes 53,578 and 54,048 corresponding to sales of natural gas produced by the Company for the nine-month period ended September 30, 2020 and 2019, respectively.

o Sales Channels

For the nine-month period ended September 30, 2020

Central

Gas and

Administration

Upstream

Downstream

Power

and others

Total

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

-

167,437

-

-

167,437

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

-

4,009

8,647

-

12,656

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

-

-

24,241

-

24,241

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

-

-

24,948

-

24,948

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

-

65,328

22,017

-

87,345

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

-

66,234

-

-

66,234

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

-

16,665

-

-

16,665

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

-

28,531

-

-

28,531

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

-

26,085

-

-

26,085

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

-

4,826

-

-

4,826

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

2,494

9,151

11,392

10,106

33,143

2,494

388,266

91,245

10,106

492,111

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 SEPTEMBER 30, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

24. REVENUES (Cont.)

For the nine-month period ended September 30, 2019

Central

Gas and

Administration

Upstream

Downstream

Power

and others

Total

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

-

178,864

-

-

178,864

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

-

709

11,268

-

11,977

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

-

-

17,305

-

17,305

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

-

-

33,319

-

33,319

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

-

81,990

19,179

-

101,169

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

-

45,490

-

-

45,490

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

-

17,166

-

-

17,166

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

-

24,352

-

-

24,352

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

-

13,266

-

-

13,266

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

-

4,360

-

-

4,360

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

2,008

6,063

8,097

14,316

30,484

2,008

372,260

89,168

14,316

477,752

  1. Target Market

Sales contracts in the domestic market resulted in 427,021 and 420,058 for the nine-month period ended September 30, 2020 and 2019, respectively.

Sales contracts in the international market resulted in 65,090 and 57,694 for the nine-month period ended September 30, 2020 and 2019, respectively.

  • Contract balances

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

September 30, 2020

December 31, 2019

Noncurrent

Current

Noncurrent

Current

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

10,057

101,464

6,785

100,706

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

-

426

-

203

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

-

8,746

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 nine-month period ended on September 30, 2020 and 2019 the Group has recognized 6,983 and 4,184, 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 nine-month period

ended September 30,

2020

2019

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

80,479

53,324

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

125,225

139,580

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

330,793

259,286

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

22,511

31,577

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

353

342

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

(104,272)

(95,545)

455,089

388,564

  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.

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 SEPTEMBER 30, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

26. EXPENSES BY NATURE

The Group presents the condensed interim consolidated financial 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 nine-month period ended September 30, 2020 and 2019:

For the nine-month period ended September 30, 2020

Production

Administrative

Selling

Exploration

costs(3)

expenses

expenses

expenses

Total

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

29,442

9,108

4,685

621

43,856

(5)

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

1,709

6,325

(2)

1,170

77

9,281

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

6,222

555

260

29

7,066

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

5,358

293

11,549

(1)

-

17,200

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

30,826

-

67

57

30,950

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

3,626

200

102

-

3,928

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

5,149

24

1,300

-

6,473

(4)

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

-

-

-

344

344

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

126,879

2,963

4,105

-

133,947

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

1,990

391

28

-

2,409

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

12,670

11

701

-

13,382

Industrial inputs, consumable materials and supplies .

15,359

72

259

23

15,713

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

28,258

461

2,546

293

31,558

(4)

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

36,038

923

1,099

2

38,062

(4)

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

-

-

-

3,576

3,576

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

16,052

2

12,160

-

28,214

(4)

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

-

-

10,311

-

10,311

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

-

1,399

265

-

1,664

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

11,215

549

2,795

52

14,611

(4)

330,793

23,276

53,402

5,074

412,545

  1. Includes 7,737 corresponding to export withholdings.
  2. Includes 70 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 1,034.
  4. Includes 3,818 and 3,099 corresponding to short-term leases and to the lease charge related to the underlying asset return and/or use, respectively.
  5. Includes 1,409 corresponding to the Work and Production Assistance Program received in benefit of AESA and OPESSA. See Note 36.

For the nine-month period ended September 30, 2019

Production

Administrative

Selling

Exploration

costs(3)

expenses

expenses

expenses

Total

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

22,669

5,534

2,842

489

31,534

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

1,836

4,272

(2)

833

20

6,961

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

6,073

623

323

113

7,132

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

4,889

171

7,572

(1)

44

12,676

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

30,455

-

80

43

30,578

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

1,540

99

104

-

1,743

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

6,895

32

508

-

7,435

(4)

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

-

-

-

933

933

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

94,746

1,986

2,488

-

99,220

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

1,422

222

21

-

1,665

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

6,773

-

429

-

7,202

Industrial inputs, consumable materials and supplies .

15,398

110

178

29

15,715

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

13,417

509

1,745

198

15,869

(4)

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

33,182

624

662

52

34,520

(4)

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

-

-

-

2,502

2,502

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

15,592

2

10,887

-

26,481

(4)

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

-

-

983

-

983

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

-

1,822

504

-

2,326

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

4,399

571

2,776

70

7,816

(4)

259,286

16,577

32,935

4,493

313,291

  1. Includes 4,639 corresponding to export withholdings.
  2. Includes 63 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 798.
  4. Includes 4,283 and 1,534 corresponding to short-term leases and to the lease charge related to the underlying asset return and/or use, respectively.

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 SEPTEMBER 30, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

27. OTHER NET OPERATING RESULTS

For the nine-month period

ended September 30,

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

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

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

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

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

2020

2019

12,233

(1)

965

(2)

(4,345)

(2,827)

3,189

(3)

249

-

613

750

487

11,827(513)

  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 nine-month period

ended September 30,

2020

2019

Financial income

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

5,360

4,081

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

66,568

77,091

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

1,946

4,750

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

73,874

85,922

Financial loss

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

(48,268)

(32,641)

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

(40,563)

(30,337)

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

(12,369)

(1,652)

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

(101,200)

(64,630)

Other financial results

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

1,607

(3,905)

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

(485)

(43)

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

4,515

3,664

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

9,597

-

Result from financial instruments exchange ............................................................................

1,330

-

Result from debt exchange(1) ...................................................................................................

(2,097)

-

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

14,467

(284)

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

(12,859)

21,008

  1. See Note 21.

29. INVESTMENTS IN JOINT OPERATIONS

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

September 30, 2020

December 31, 2019

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

257,369

221,219

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

4,226

8,723

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

261,595

229,942

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

22,064

17,754

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

14,717

27,641

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

36,781

45,395

For the nine-month period ended September 30,

2020

2019

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

65,324

48,177

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

155

151

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

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 SEPTEMBER 30, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

30. SHAREHOLDERS' EQUITY

The Company's subscribed capital as of September 30, 2020, is 3,928 and 5 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 September 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 nine-month period

ended September 30,

2020

2019

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

(113,884)

(23,595)

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

392,532,676

392,293,554

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

(290.13)

(60.15)

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

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 SEPTEMBER 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 nine-month period ended September 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 issuance of these condensed interim consolidated financial statements, the parties to the process are producing evidence supporting their claims (Discovery Stage), including witness testimonies that will begin on October and shall continue until the end of January 2021.

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 nine-month period ended on September 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.

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.

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 SEPTEMBER 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.

On September 3, 2020, YPF filed an appeal against the order issued on May 20, 2020 by the Provincial Court of Madrid for constitutional protection under sections 41 and 44 of the Organic Law of the Constitutional Court for considering that such order violates YPF's fundamental right to an effective judicial protection. The Argentine Republic also filed an appeal for constitutional protection against such resolution.

On September 24, 2020, YPF and the Argentine Republic jointly filed a pleading requesting Judge Preska to issue a letters rogattory pursuant to section 28(b) of the Federal Rules of Civil Procedure of the United States and the Hague Convention, requesting assistance from the Argentine authorities to obtain the pertinent testimonies and the production of certain documents.

On October 2, 2020, YPF filed a pleading requesting Judge Preska to issue a letters rogatory pursuant to section 28(b) of the Federal Rules of Civil Procedure of the United States and the Hague Convention, in order to obtain assistance from Spanish authorities in the production of certain documents.

On October 6, 2020, Judge Preska approved the petitions filed by YPF and the Argentine Republic to obtain testimony and the production of the documents required on September 24 and October 2, 2020.

Within the framework of the Discovery process, the parties are exchanging documentation of both pleadings, namely, Requests for Production of Documents and their corresponding responses and objections; interrogatories and Requests for Admissions, among others.

As of the date of issuance of these consolidated financial statements, and considering the ongoing status of the lawsuit, the complexity of the complaint and the evidence that both parties should submit, the Company will continue to 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 categorically rejects the claims asserted in the complaint and will file the necessary legal remedies and exercise all defensive measures in accordance with the applicable legal procedure to defend their rights.

  • Eton Park Capital Management, L.P., Eton Park Master Fund, LTD. and 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.

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 SEPTEMBER 30, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

33. CONTINGENT ASSETS AND LIABILITIES (Cont.)

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.

On September 24, 2020, YPF and the Argentine Republic jointly filed a pleading requesting Judge Preska to issue a letters rogattory pursuant to section 28(b) of the Federal Rules of Civil Procedure of the United States and the Hague Convention, requesting assistance from the Argentine authorities to obtain the pertinent testimonies and the production of certain documents.

On October 2, 2020, YPF filed a pleading requesting Judge Preska to issue a letters rogatory pursuant to section 28(b) of the Federal Rules of Civil Procedure of the United States and the Hague Convention, in order to obtain assistance from Spanish authorities in the production of certain documents.

On October 6, 2020, Judge Preska approved the petitions filed by YPF and the Argentine Republic to obtain testimony and the production of the documents required on September 24 and October 2, 2020.

Within the framework of the Discovery process, the parties are exchanging documentation of both pleadings, namely, Requests for Production of Documents and their corresponding responses and objections; interrogatories and Requests for Admissions, among others.

As of the date of issuance of these consolidated financial statements, and considering the ongoing status of the lawsuit, the complexity of the complaint and the evidence that both parties should submit, the Company will continue to 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 categorically rejects the claims asserted in the complaint and will file the necessary legal remedies and exercise all defensive measures in accordance with the applicable legal procedure to defend their rights.

34. CONTRACTUAL COMMITMENTS

Contractual commitments are described in Note 33 to the annual consolidated financial statements. Updates for the nine- month period ended September 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 nine-month period ended September 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 8,753. These transactions were executed based on the market's general and regulatory framework. The net balance to be paid to CHNC as of September 30, 2020 is 2,671. Additionally, YPF has a overlift position with CHNC corresponding to the imbalance of crude oil production from Loma Campana of 3,968.

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 SEPTEMBER 30, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

35. MAIN REGULATIONS AND OTHER

Main regulations and others are described in Note 34 to the annual consolidated financial statements. Updates for the nine-month period ended September 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 - ENARGAS Resolution No. 305/2020

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.

On October 5, 2020, ENARGAS Resolution No. 305/2020 was published in the BO, extending the effective term of ENARGAS Resolution No. 59/2018 to September 30, 2021.

Terms and Conditions for the Distribution of Natural Gas through Networks

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.

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.

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 DNU 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.

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 SEPTEMBER 30, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

35. MAIN REGULATIONS AND OTHERS (Cont.)

Likewise, on June 19, 2020, and based on the DNU 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 monthly extend the term with the distribution companies, which are currently extended until November 30, 2020.

On September 20, 2020, the DNU No. 756/2020 was published in the BO, extending the effective term of the prohibition to interrupt services to utility companies until December 31, 2020 in case of delay or lack of payment of up to 7 consecutive or alternate bills, due as from March 1, 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 September 30, 2020, which amounts to 8,433.

In the session of October 29, 2020, the Chamber of Deputies, when discussing the 2021 budget bill, approved to the abrogation of the DNU No. 1053/2018, which will become effective upon the enactment of such bill, which as of the issuance date of these quarterly financial statements, has not been considered by the Chamber of Senators.

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

  • LPG commercialization in the domestic market

Decree No. 311/2020 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.

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 SEPTEMBER 30, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

35. MAIN REGULATIONS AND OTHERS (Cont.)

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 No. 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 hydrocarbon 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.

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 SEPTEMBER 30, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

35. MAIN REGULATIONS AND OTHERS (Cont.)

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.

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/Bbl 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.

On August 28, 2020, more than ten consecutive days were completed in which the average price of Brent exceeded US$ 45/bbl, leaving the provisions related to the price of Decree No. 488/2020 without effect. Thus, as of that date, producers and refiners negotiate prices taking international oil prices as reference. As of the date of issuance of these condensed, interim, consolidated financial statements, the Argentine Government has not issued any additional regulations on this matter.

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 SEPTEMBER 30, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

35. MAIN REGULATIONS AND OTHERS (Cont.)

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.

On September 1, 2020, a request for the temporary suspension of the Program related to the "La Ribera I y II" Included Concession, effective from January 1, 2020, was submitted to the Under-Secretariat of Hydrocarbons of the Secretariat of Energy of the Nation, and that such suspension be notified to the Under-Secretariat of Energy, Mining and Hydrocarbons of the Province of Neuquén, in its capacity as Provincial Enforcement Authority of the Program. This temporary suspension was requested both in relation to the performance of the Investment Plan and also to the payment of compensations for the production of 2020, until a new plan in line with the current market may be elaborated for the remaining term until the end of 2021.

As of the date of issuance of these condensed interim consolidated financial statements, neither the Under-Secretariat of Energy, Mining and Hydrocarbons of the Province of Neuquén nor the Under-Secretariat of Hydrocarbons of the Secretariat of Energy of the Nation have answered the requests filed by YPF.

35.d) Tax Regulations

  • Extended Moratorium

On August 26, 2020, Law No. 27,562 on Social Solidarity and Production Reactivation within the Public Emerency Framework was published in the BO, which declared the extension of the regularization regime of tax, social security and customs obligations originally established for Micro, Small and Medium-Sized Enterprises (MiPyMEs) under Law No.

27,541. The following are the main aspects contemplated under this law:

  • The moratorium applies to individuals and legal entities responsible for payment of taxes and social security contributions, excluding subjects (except for MiPyMEs, non-profit entities and small taxpayers) owning financial assets abroad and deciding not to repatriate at least 30% of such assets within 60 days from the date of accessing the regime (including shareholders who own at least thirty percent (30%) of the capital stock).
  • Obligations past due as on July 31, 2020 may be included.
  • A 15% deduction will apply to settlements in cash.
  • The number of installments may be 48, 60, 96 or 120, depending on the type of debt and taxpayer.
  • The first 6 installments will be subject to a 2% fixed monthly rate (BADLAR rate in Pesos at private banks from the seventh installment).

Besides, it establishes benefits for compliant taxpayers, taxpayers under the Small Taxpayer's Regime ("monotributistas") as well as for Micro and Small-Sized Entreprises.

Adherence to the plan,which expired on October 31, 2020, was extended to November 30, 2020 by Decree No. 833/2020.

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 SEPTEMBER 30, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

35. MAIN REGULATIONS AND OTHERS (Cont.)

35.e) Other regulatory requirements

  • CNV Regulatory Framework (N.T. 2013)
  1. 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 September 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.
  1. 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.

52

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 SEPTEMBER 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 September 30, 2020 and December 31, 2019 and transactions with the mentioned parties for the nine-month period ended September 30, 2020 and 2019.

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

339

965

2,350

327

296

2,278

2,183

679

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

9

693

369

-

12

587

114

-

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

-

2,688

511

-

-

2,995

350

-

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

-

428

21

-

-

956

123

-

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

-

22

-

-

-

17

-

-

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

-

-

-

-

-

6

-

-

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

55

6

68

-

56

59

70

-

403

4,802

3,319

327

364

6,898

2,840

679

Associates:

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

-

147

10

-

-

1,063

-

-

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

47

375

240

-

90

317

73

-

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

-

-

261

-

-

77

401

-

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

-

-

69

-

-

-

182

-

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

11

-

9

-

9

-

14

-

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

2

-

-

-

4

-

-

-

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

-

-

280

-

-

-

99

-

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

-

1

95

-

-

-

198

-

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

-

28

1

-

-

12

1

-

60

551

965

-

103

1,469

968

-

463

5,353

4,284

327

467

8,367

3,808

679

For the nine-month period ended September 30,

2020

2019

Purchases

Net interest

Purchases

Net interest

and

income

and

income

Revenues

services

(loss)

Revenues

services

(loss)

Joint Ventures:

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

2,649

3,605

-

1,510

2,679

-

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

3,943

3,389

-

3,282

2,082

-

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

9,198

1,583

-

7,159

698

-

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

1,845

587

-

2,242

368

(16)

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

-

-

-

5

-

-

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

-

-

-

9

23

-

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

88

425

-

19

155

-

17,723

9,589

-

14,226

6,005

(16)

Associates:

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

637

8

8

727

1

-

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

1,817

244

3

1,628

183

162

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

56

2,060

2

190

1,563

-

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

-

937

-

-

881

-

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

1

51

-

1

53

-

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

-

963

-

-

542

-

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

3

1,094

-

2

972

-

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

158

-

-

169

-

-

2,672

5,357

13

2,717

4,195

162

20,395

14,946

13

16,943

10,200

146

53

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 SEPTEMBER 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 nine-month period

ended September 30,

Customers / Suppliers

Ref.

September 30, 2020

December 31, 2019

2020

2019

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

(1) (16)

17,012

26,223

-

-

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

(2) (16)

4,354

3,416

2,672

3,335

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

(3) (16)

177

155

183

639

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

(4) (16)

216

166

-

7

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

(5) (16)

625

475

150

-

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

(6) (16)

377

172

598

708

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

(7) (16)

5,535

4,417

-

323

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

(8) (16)

3,184

2,056

3,279

4,376

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

(9) (16)

-

-

-

613

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

(10)

10,466

627

19,927

5,878

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

(11)

(1,814)

386

(4,386)

(2,709)

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

(12)

7,348

5,041

9,789

10,098

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

(13)

(2,186)

(505)

(1,341)

(161)

Aerolíneas Argentinas S.A. and Austral

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

(14)

5,159

5,033

4,212

11,224

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

(15)

-

-

1,409

-

  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 September 30, 2020, 1,804 have been charged to provision and 3,731 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, LNG 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 and 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 Bonds of the Argentine Republic 2029 and 2030, and Treasury Bills, classified as "Investments in financial assets". See Note 7.

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.

54

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 SEPTEMBER 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 nine-month period ended September 30, 2020 and 2019:

For the nine-month period

ended September 30,

2020

2019

Short-term employee benefits(1) .................................................

537

354

Share-based benefits ................................................................

113

70

Post-retirement benefits .............................................................

22

14

Termination benefits...................................................................

242

-

914

438

  1. Does not include Social Security contributions of 143 and 98 for the nine-month period ended September 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 166 and 100 for the nine-month period ended September 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 2,689 and 2,574 for the nine-month period ended September 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 368 and 371 for the nine-month period ended September 30, 2020 and 2019, respectively.
    During the nine-month period ended on September 30, 2020, the Company has not repurchased its own shares. Likewise, during the nine-month period ended on September 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.

55

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 SEPTEMBER 30, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

38. ASSETS AND LIABILITIES IN CURRENCIES OTHER THAN THE PESO

September 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

75.98

87

1

59.69

60

Bolivian peso ..................................................................

14

10.92

152

14

8.58

119

Trade receivables

U.S. dollar .......................................................................

110

75.98

8,351

220

59.69

13,132

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

8,590

13,311

Current assets

Other receivables

U.S. dollar .......................................................................

184

75.98

14,013

276

59.69

16,474

Euro ................................................................................

4

88.97

371

4

66.85

267

Chilean peso...................................................................

6,305

0.10

631

5,241

0.08

419

Yen .................................................................................

106

0.72

76

151

0.55

83

Trade receivables

U.S. dollar .......................................................................

768

75.98

58,348

939

59.69

56,030

Chilean peso...................................................................

6,305

0.10

631

17,221

0.08

1,378

Investments in financial assets

U.S. dollar .......................................................................

121

75.98

9,212

140

59.69

8,370

Cash and cash equivalents

U.S. dollar .......................................................................

161

75.98

12,230

723

59.69

43,172

Chilean peso...................................................................

3,540

0.10

354

1,685

0.08

135

Bolivian peso ..................................................................

7

10.92

76

10

8.58

90

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

95,942

126,418

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

104,532

139,729

Noncurrent liabilities

Provisions

U.S. dollar .......................................................................

2,128

76.18

162,081

2,020

59.89

120,968

Lease liabilities

U.S. dollar .......................................................................

535

76.18

40,738

674

59.89

40,388

Loans

U.S. dollar .......................................................................

6,146

76.18

468,165

6,863

59.89

411,032

Other liabilities

U.S. dollar .......................................................................

11

76.18

819

12

59.89

699

Accounts payable

U.S. dollar .......................................................................

3

76.18

249

6

59.89

359

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

672,052

573,446

Current liabilities

Provisions

U.S. dollar .......................................................................

59

76.18

4,501

59

59.89

3,555

Taxes payable

Chilean peso...................................................................

1,142

0.10

114

3,102

0.08

248

Salaries and social security

U.S. dollar .......................................................................

9

76.18

650

7

59.89

406

Lease liabilities

U.S. dollar .......................................................................

352

76.18

26,848

357

59.89

21,384

Loans

U.S. dollar .......................................................................

1,437

76.18

109,475

1,229

59.89

73,599

Chilean peso...................................................................

2,926

0.10

293

2,993

0.08

239

Other liabilities

U.S. dollar .......................................................................

20

76.18

1,548

22

59.89

1,310

Accounts payable

U.S. dollar .......................................................................

717

76.18

54,648

1,181

59.89

70,711

Euro ................................................................................

12

89.39

1,085

16

67.23

1,053

Chilean peso...................................................................

4,729

0.10

473

3,744

0.08

300

Bolivian peso ..................................................................

-

10.92

-

7

8.58

60

Yen .................................................................................

58

0.72

42

133

0.55

73

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

199,677

172,938

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

871,729

746,384

  1. Exchange rate in force at September 30, 2020 and December 31, 2019 according to BNA.

56

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 SEPTEMBER 30, 2020 AND COMPARATIVE INFORMATION (UNAUDITED)

39. SUBSEQUENT EVENTS

Termination of the liquefaction barge charter agreement and the liquefaction services agreement with Exmar Energy Netherlands B.V., Exmar Argentina S.A.U. and Exmar N.V.

On October 19, 2020, the settlement agreement entered into between YPF and the companies Exmar Energy Netherlands B.V., Exmar Argentina S.A.U. and Exmar N.V. became effective, under which, without recognizing any facts or rights, it was decided to terminate the liquefaction barge charter agreement and the liquefaction services agreement of the Tango FLNG liquefaction barge executed on November 20, 2018, and the termination of the arbitration claims initiated by Exmar Energy Netherlands B.V. and Exmar Argentina S.A.U. against YPF on July 15, 2020 before the London Court of International Arbitration ("LCIA"), and therefore, these companies have no further claims against YPF. As a result of this agreement, the Company will pay a total settlement amount of US$ 150 million, which includes a down payment already made of US$ 22 million and the remaining amount to be paid in 18 monthly installments.

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 September 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 17 November 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 November 2020 13:12:07 UTC


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