INVESTOR PRESENTATION
AUGUST 2020
IMPORTANT NOTICE
Safe harbor statement under the US Private Securities Litigation Reform Act of 1995.
This document contains statements that YPF believes constitute forward-looking statements within the meaning of the US Private Securities Litigation Reform Act of 1995.
These forward-looking statements may include statements regarding the intent, belief, plans, current expectations or objectives of YPF and its management, including statements with respect to YPF's future financial condition, financial, operating, reserve replacement and other ratios, results of operations, business strategy, geographic concentration, business concentration, production and marketed volumes and reserves, as well as YPF's plans, expectations or objectives with respect to future capital expenditures, investments, expansion and other projects, exploration activities, ownership interests, divestments, cost savings and dividend payout policies. These forward-looking statements may also include assumptions regarding future economic and other conditions, such as future crude oil and other prices, refining and marketing margins and exchange rates. These statements are not guarantees of future performance, prices, margins, exchange rates or other events and are subject to material risks, uncertainties, changes and other factors which may be beyond YPF's control or may be difficult to predict.
YPF's actual future financial condition, financial, operating, reserve replacement and other ratios, results of operations, business strategy, geographic concentration, business concentration, production and marketed volumes, reserves, capital expenditures, investments, expansion and other projects, exploration activities, ownership interests, divestments, cost savings and dividend payout policies, as well as actual future economic and other conditions, such as future crude oil and other prices, refining margins and exchange rates, could differ materially from those expressed or implied in any such forward-looking statements. Important factors that could cause such differences include, but are not limited to, oil, gas and other price fluctuations, supply and demand levels, currency fluctuations, exploration, drilling and production results, changes in reserves estimates, success in partnering with third parties, loss of market share, industry competition, environmental risks, physical risks, the risks of doing business in developing countries, legislative, tax, legal and regulatory developments, economic and financial market conditions in various countries and regions, political risks, wars and acts of terrorism, natural disasters, project delays or advancements and lack of approvals, as well as those factors described in the filings made by YPF and its affiliates with the Securities and Exchange Commission, in particular, those described in "Item 3. Key Information-Risk Factors" and "Item 5. Operating and Financial Review and Prospects" in YPF's Annual Report on Form 20- F for the fiscal year ended December 31, 2019 filed with the US Securities and Exchange Commission. In light of the foregoing, the forward-looking statements included in this document may not occur.
Except as required by law, YPF does not undertake to publicly update or revise these forward-looking statements even if experience or future changes make it clear that the projected performance, conditions or events expressed or implied therein will not be realized.
These materials do not constitute an offer to sell or the solicitation of any offer to buy any securities of YPF S.A. in any jurisdiction. Securities may not be offered or sold in the United States absent registration with the U.S. Securities and Exchange Commission or an exemption from such registration.
Cautionary Note to U.S. Investors - The United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to separately disclose proved, probable and possible reserves that a company has determined in accordance with the SEC rules. We may use certain terms in this presentation, such as resources, that the SEC's guidelines strictly prohibit us from including in filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 20-F, File No. 1-12102 available on the SEC website www.sec.gov.
Our estimates of EURs, included in our Development Costs, are by their nature more speculative than estimates of proved, probable and possible reserves and accordingly are subject to substantially greater risk of being actually realized, particularly in areas or zones where there has been limited history. Actual locations drilled and quantities that may be ultimately recovered from our concessions will differ substantially. Ultimate recoveries will be dependent upon numerous factors including actual encountered geological conditions and the impact of future oil and gas pricing.
Unless otherwise indicated, the calculation of the main financial figures in U.S. dollars is derived from the calculation of the consolidated financial results expressed in Argentine pesos using the average exchange rate for each period. From 1Q 2019 onwards, the calculation of the main financial figures in U.S. dollars is derived from the sum of: (1) YPF S.A. individual financial results expressed in Argentine pesos divided by the average exchange rate of the period and (2) the financial results of YPF S.A.'s subsidiaries expressed in Argentine pesos divided by the exchange rate at the end of period.
2
AGENDA
01. COMPANY OVERVIEW
- UPSTREAM
- DOWNSTREAM
- LATEST FINANCIAL RESULTS
MAIN
FIGURES
- 98-yearold company
- Adjusted EBITDA = EBITDA that excludes IFRS 16 and IAS 29 effects. Excludes acceleration of promote of Schlumberger's stake in Bandurria
Sur for US$104mn in 1Q20 and the sale of 11% stake in Bandurria Sur for US$65mn in 2Q20. - Net income includes net impairment of property, plant & equipment of around US$1.2 billion.
0102
Publicly traded | Controlling |
corporation since 1993 on | Shareholder: |
the NY and BA | Argentina Government |
Exchanges | (51%) |
03 | 04 |
Free Float: NYSE 83% / | Revenues LTM of USD |
BYMA 17% | 11,535 million |
(as of August 14, 2020) | |
05 | 06 |
Adjusted EBITDA LTM (1) | Net Income LTM (2) |
of USD 2,515 million | of USD -1,582 million |
4
• The largest O&G producer in Argentina (36% market share (1): 42% oil and 33% gas) | |||
UPSTREAM | |||
• Production (LTM): 508 Kboe/d; Proved Reserves (2019) (2): 1,073 mm boe (shale accounting for 31%) | |||
• The largest shale producer outside the US with 3.0 million acres (gross) and net production (2) of 107 | |||
Kboe/d | |||
• Over 50% of Argentina's refining capacity, operating 3 wholly-owned refineries with 320 Kbbl/d capacity (2) | |||
DOWNSTREAM | |||
REFINING | • High level of conversion and complexity | ||
• Pipelines (2): Nearly 2,800 km of crude oil and 1,800 km of refined products | |||
• Leading petrochemical producer. Output Capacity: 1.7 (2) mm ton per annum (excluding Profertil) | |||
DOWNSTREAM | |||
PETCHEM | • Main products: BTX (Benzene, Toluene, Mixed Xylenes), Methanol and Propylene | ||
• 55% market share in term of diesel & gasoline sales volumes in Argentina | |||
DOWNSTREAM | |||
• 1,620 (2) gas stations in Argentina (35% market share) | |||
MARKETING | |||
• 103 (2) sale points covering the Agribusiness | |||
BUSINESS LINES
AT A GLANCE
MAJOR
AFFILIATES
- Source IAPG, data as of 1H20.
- As per 20-F 2019.
- MEGA (38% stake): Liquids separation and a fractioning plant. Production capacity of 1.6 million tons of
NGL - Metrogas (70% stake): Largest natural gas distributor in Argentina, serving 2.2 (2) million customers
- Refinor (50% stake): Refining (26 Kbbl/d (2) of capacity), transportation and marketing of refined products
- Profertil (50% stake): Fertilizer producer with a capacity of 2.1 million tons (urea and ammonia)
- YPF Luz (75% stake, co-controlled with GE): Installed capacity of 1,819 MW (2) (99MW wind farm)
5
INTEGRATED ACROSS THE ENTIRE VALUE CHAIN
BUSINESS
DOMESTIC | |||
OIL | |||
MARKET | REFINING | ||
PRODUCTION | |||
220 | PURCHASES | 261 | |
Kbbl/d | Kbbl/d | ||
DOMESTIC MARKET
88%
EXPORTS
12%
83% Domestic prices (gasoline and diesel)
17% International prices
(bunker, jet fuel, petrochemicals, lubricants, LPG and others)
International prices
(naphtha, LPG, jet fuel, petrochemicals, fuel oil, soybean oil and meal and others)
NATURAL
GAS
UPSTREAM
39 Mm3/d
Source: Company filings. All figures as of LTM.
% calculated based on units sold.
EXPORTS
4%
DOMESTIC MARKET
96%
~40% | RESIDENTIAL + CNG |
~34% INDUSTRIAL
~26% | POWER PLANTS |
6
SAFETY AND SUSTAINABILITY IS PARAMOUNT IN OUR STRATEGY
TOTAL IFR
# of people injured for each million hours worked
1.89
HEALTH
Weekly Covid-19 Risk Committee continuously monitors the evolution of the situation
Managed to keep all businesses running with minimum personnel
97% of the personnel whose positions do not require face-to-face interactions are working remotely
COMMUNITIES | |||||||||||||||||||||||||||
Donated across hospitals, polices stations and | |||||||||||||||||||||||||||
1.05 | 1.05 | local municipalities in which we operate, | |||||||||||||||||||||||||
providing them with protection and technology | |||||||||||||||||||||||||||
0.82 | 0.91 | equipment to face the pandemic | |||||||||||||||||||||||||
0.72 | |||||||||||||||||||||||||||
0.74 | |||||||||||||||||||||||||||
0.60 | DIVERSITY | ||||||||||||||||||||||||||
0.51 | |||||||||||||||||||||||||||
0.44 | Board and managerial roles being held by | ||||||||||||||||||||||||||
women, both in YPF and its subsidiaries | |||||||||||||||||||||||||||
0.15 | |||||||||||||||||||||||||||
CORPORATE GOVERNANCE | |||||||||||||||||||||||||||
Included in BYMA's Corporate Governance | |||||||||||||||||||||||||||
2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 1H | |||||||||||||||||
Panel and BYMA's Sustainability Index | |||||||||||||||||||||||||||
2020 |
7
MAIN FINANCIAL FIGURES AFFECTED BY CURRENT HEADWINDS
REVENUES | CAPEX | Upstream | Downstream | Gas & Power | Other | ||||||||
(In Billions of USD) | (In Billions of USD) | ||||||||||||
3.5 | |||||||||||||
15.3 | 15.5 | 3.5 | 3.3 | ||||||||||
13.7 | |||||||||||||
11.5 | 2.6 |
201720182019LTM20172018
ADJUSTED EBITDA & EBITDA MARGIN | NET DEBT & NET LEVERAGE (1) | |||
(In Billions of USD and %) | (In Billions of USD and %) | |||
2019LTM
- Net debt is calculated as total debt less cash & equivalents. Cash & equivalents include Argentine sovereign bonds BONAR 2020 and 2021.
27% | 28% |
26% | |
4.1 | 4.4 |
3.6 | |
3,0x | ||
22% | 2,5x | 8.0 |
2,0x | 1.7x | |
1,5x | 2.0x | |
2.5 | 7.4 | |
1,0x | ||
2.9x | 10.000 |
2.1x | 9.000 |
7.4 | 8.000 |
7.6 | 7.000 |
6.000 |
0,5x | 5.000 | ||||||||||||||||||||
0,0x | 4.000 | ||||||||||||||||||||
2017 | 2018 | 2019 | LTM | 2017 | 2018 | 2019 | LTM |
8
MANAGEABLE DEBT PROFILE AND SOUND CASH POSITION
CASH AND CASH EQUIVALENTS | PRINCIPAL DEBT AMORTIZATION(1) | Trade financing | ||||
SCHEDULE AFTER LM EXERCISE | Bank loans | |||||
USD 1,303 million | ||||||
(In Millions of USD) | 1,569 | Bonds | ||||
(2Q20) | ||||||
BONDS | 1,239 | 1,254 | ||||
9% | ||||||
1,014 | 931 | 1,010 | ||||
772
643
CASH | |
91% | 1 |
Cash figure excludes USD 73 million payments related to the liability management exercise
2H 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028+ |
- ~90% of debt in USD (2)
- 55% of debt due after 2024
- Avg. interest rates of 7.5% in USD and 30.9% in Pesos (2)
CCC | Caa3 | CCC+ | (1) | As of June 30, 2020, converted to USD using the exchange rate of Ps 70.36 to U.S $1.00. Excludes IFRS 16 effects. | |
(2) | Refers to YPF on a stand-alone basis. | ||||
AA (arg) | 9 | ||||
AGENDA
01. COMPANY OVERVIEW
02. UPSTREAM
03. DOWNSTREAM
04. LATEST FINANCIAL RESULTS
MARKET LEADER IN BOTH OIL AND NATURAL GAS PRODUCTION
TOTAL NET PRODUCTION | Crude Oil | ||||
Natural Gas | |||||
(KBOE/D) | NGL | ||||
555.0 | |||||
530.2 | 514.4 |
UPSTREAM
Market Share Breakdown (%)
Oil
Production (1)
Others
22%
508.0 |
3%
42%
2017 | 2018 | 2019 | LTM |
Gas
Production (1)
- Source IAPG, data as of 1H20.
3%
4%
5%
21%
Others
20%
33%
5%
8%
10% 14%
10%
11
SHALE TO DRIVE FUTURE GROWTH
NET CONVENTIONAL PRODUCTION
(KBOE/D)
Crude Oil Natural Gas NGL
423.7
384.6
347.8 330.0
2017 | 2018 | 2019 | LTM |
NET SHALE PRODUCTION
(KBOE/D)
Crude Oil Natural Gas NGL
107.0
92.1
56.9
36.6
2017 2018 2019 LTM
NET TIGHT PRODUCTION
(KBOE/D)
Crude Oil Natural Gas NGL
94.7
88.7
74.5 71.0
2017 2018 2019 LTM
01
02
03
Shale accounts for 21% of total output in LTM vs. 11% in 2018
Unconventional wells drilled with world-class performance, and very competitive costs Managing natural decline at conventional with secondary and tertiary recovery
12
RESERVE REPLACEMENT SUPPORTED BY SHALE DEVELOPMENTS
01 Reserve Replacement Ratio 96% | 02 Shale representing 31% of total reserves; (vs. 19% in 2018) |
EVOLUTION HYDROCARBON RESERVES | Shale | Others | ||
(MBOE) | ||||
1,212 1,226 | |||||||
982 | 1,005 | 979 | 1,083 | 1,113 | 1,080 | 1,073 | |
929 | |||||||
19% | 31% | ||||||
2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 |
2019 PROVED RESERVES
(% Breakdown)
Natural Gas
37%
Crude Oil + NGL
63%
13
REFERENCES | |||||||
ChS | Exploration - Operated | ||||||
Este | |||||||
FMo | Exploration and Pilots - | ||||||
N | Non Operated | ||||||
BDT | Pilots - Operated | ||||||
Development - Operated | |||||||
PY I | LaMa | |
San | ||
Roque | ||
EOR | PY | |
II | ||
LACh AdCh | ||
AdC | ADLA BAñ | BS |
APE | LC | |
LCa | ||
APO | ||
LRi I | LLL Sur | |
Embalse | ||
RDM | LRi II | EL Embalse |
O |
VACA MUERTA
01 Short-termpotential with 81 DUC wells - 71 shale oil and 10 shale gas wells
02 Long-termpotential based on the large size of the formation
4 fields under development
25 fields with Pilots (9 non-operated and 7 exploratory)
1,333 millons of USD invested
LE
Lindero Atravesado
in 2019
LLL-SBLLL-SB
BGM
BG
14
WORLD CLASS SHALE OIL PRODUCTIVITY; OPPORTUNITY FOR FURTHER COST REDUCTIONS
Bakken | |||
LACH | VS. | Stack | |
BS SE | Bone Spring | ||
Wolfcamp Midland | |||
LC | Wolfcamp Delaware | Woodbine | |
Eagleford |
Loma Campana (LC)
La Amarga Chica (LACH)
Bandurria Sur South East (BS SE)
USA plays(1)
- Selected key plays in USA, data of 2018.
- The chart includes only oil wells. Oil wells are defined as wells that in the first 6 months of production have GORs ranging from 0-260 m3/m3 (0 - 1,460 scf/bbl) USA data was provided by IHS Markit.
PRODUCTIVITY | Oil window wells(2) |
(KBOE/100M stimulated lateral) | |
51.5 | 51.0 | 50.9 | 49.8 | ||||
41.2 | |||||||
35.0 | 35.0 | 33.0 | |||||
22.0 | 19.0 | ||||||
13.0 | 9.0 | ||||||
DEVELOPMENT COST | Oil window wells(2) |
(USD/BOE) | |
20.8 | |||||||
16.5 | 16.9 | ||||||
14.0 | |||||||
11.0 | 11.0 | 11.3 | 12.1 | 12.2 | |||
9.4 | |||||||
8.1 | |||||||
15
A LOWER PRICING ENVIRONMENT PUTS PRESSURE ON MARGINS IN THE SHORT-TERM
ADJUSTED EBITDA & EBITDA MARGIN
CRUDE OIL AVERAGE REALIZATION PRICE
(In Billions of USD) | |
43% | 46% |
3,498 |
3,043
40% | 35% |
2,411
1,740
(USD/BBL)
62.6
53.952.1
43.5
201720182019LTM
LIFTING COST
(USD/BOE)
12.8 | 12.0 |
11.7 | |
10.9 |
2017 | 2018 | 2019 | LTM |
NATURAL GAS AVERAGE REALIZATION PRICE
(USD/MMBTU) | |||
Subsidy | |||
4.9 | 4.5 | Market price | |
3.6 | 3.0 | ||
2017 | 2018 | 2019 | LTM | 2017 | 2018 | 2019 | LTM |
16
AGENDA
- COMPANY OVERVIEW
- UPSTREAM
- DOWNSTREAM
04. LATEST FINANCIAL RESULTS
LEADING DOWNSTREAM PLAYER
Market Share Breakdown (%) | ||||||||||
CRUDE PROCESSING (1) | GASOLINE SALES (1) | DIESEL SALES (1) | No. OF FUEL STATIONS (2) | |||||||
Others | Others | Others | ||||||||
Others | ||||||||||
7% 2% | 6% 4% | 6% | ||||||||
8% | 32% | 35% | ||||||||
16% | 15% | |||||||||
15% | ||||||||||
56% | 54% | 55% | ||||||||
4% | ||||||||||
19% | 21% | 16% | 14% | 15% | ||||||
(1) Cumulative Jan - Jun 2020.
(2) 20-F 2019.
18
VOLUMES AND REFINERY UTILIZATION SUFFERED FROM THE PANDEMIC
SALES OF REFINED PRODUCTS | D |
(KM3)
Exports Others Local Jet fuel Gasoline Diesel
A.
LUJÁN DE CUYO REFINERY
CAPACITY:
17,910 | 18,032 | 17,783 | 16,296 |
201720182019LTM
CRUDE PROCESSED & REFINERY UTILIZATION
(KBBL/D) | 89% | 87% | ||
450 | 92% | 82% | ||
400 | ||||
350 | 293 | 284 | 278 | |
300 | 261 | |||
250 |
200
150
100
50
0
2017 | 2018 | 2019 | LTM |
A B
3
C
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
105.5 KBBL/D
B.
LA PLATA
REFINERY
CAPACITY:
189 KBBL/D
C.
PLAZA HUINCUL REFINERY
CAPACITY:
25 KBBL/D
D.
REFINOR (1)
CAPACITY:
26.1 KBBL/D
OIL PIPELINE
PRODUCTS PIPELINE TERMINALS
19
RESILIENT MARGINS DESPITE CHALLENGING MARKET CONDITIONS
1.900
DOWNSTREAM EBITDA - MARGIN
(MUSD)
12% | 7% | 12% | 11% |
10%
F.O.B. REFINERY/ TERMINAL PRICE (1)
(USD/BBL)
Gasoline Diesel
1.700
1.500
1.300
1.100
900
700
500
300
100
1,415
1,280
992
789
-10%
-30%
-50%
-70%
-90%
-110%
100 | |
95 | |
94 | 93 |
89
82
82 |
75
-100
2017 | 2018 | 2019 | LTM |
-130%
2017 | 2018 | 2019 | LTM |
(1) Net of commissions, deductions, freights, turnover tax and other taxes. | 20 |
AGENDA
- COMPANY OVERVIEW
- UPSTREAM
- DOWNSTREAM
04. LATEST FINANCIAL RESULTS
MAIN
HIGHLIGHTS
2nd QUARTER 2020
01
Continued prioritizing strict health and safety protocols amid COVID-19 to protect our people. We have also continued improving the safety of our operations (IFR at 0.15(1))
03
Targeting an unprecedented company-wide cost cutting program to resume growth more efficiently
05
Managing our liquidity position to preserve business continuity while proactively tackling short- term maturities
02
Adjusted activity to face deteriorated market conditions, but latest figures are already showing a recovery
04
Optimizing our portfolio with strict capital allocation on core business activities
06
Activity level for the remainder of the year consistent with keeping net debt within the levels of the last twelve months
- Number of people injured for each million hours
worked. | 22 |
ADJUSTED ACTIVITY TO PRESERVE LONG-TERM FINANCIAL SUSTAINABILITY
REVENUES
(In Millions of USD)
-47%
CAPEX
(In Millions of USD)
3,672-31%
2,832
1,947
2Q191Q202Q20
CASH OPERATING COSTS
(In Millions of USD)
-34%
2,721-10%
1,9751,786
-82% | |||||||
915 | -73% | ||||||
598 | |||||||
162 | |||||||
2Q19 | 1Q20 | 2Q20 |
NET DEBT | |||
(In Millions of USD) | -5% | ||
-3% | |||
7,758 | 7,640 | 7,387 | |
2Q19 | 1Q20 | 2Q20 | 2Q19 | 1Q20 | 2Q20 | 23 |
UNPRECEDENTED MARKET CONDITIONS HAD A NEGATIVE IMPACT ACROSS OUR BUSINESSES
ADJUSTED EBITDA (1)
(In Millions of USD)
948 | -583 | |||||||
-23 | -175 | -139 | 28 | |||||
Adj. EBITDA | Upstream | Downstream | G & E | Corporate & | Adj. EBITDA | Impairment | D&A + other | Op. Income |
2Q19 | Eliminations | 2Q20 | 2Q20 | |||||
Adj. EBITDA 2Q20 | 156 | 123 | -128 | -122 | -850 | |||
Million USD | -560 | |||||||
-1,382 | ||||||||
-79% | -16% | n.m. | n.m. | |||||
YoY change |
Drivers | Production | Demand | Provision | Results not | ||||||||
(Decree 1053) | transferred to | |||||||||||
Prices | Prices | |||||||||||
Metrogas | 3rd parties | |||||||||||
Lifting | Purchases | |||||||||||
Natural gas assets on lower pricing environmet
(1) Adjusted EBITDA = EBITDA that excludes IFRS 16 and IAS 29 effects. Excludes results for the sale of 11% stake in Bandurria Sur for US$65mn in 2Q20. | 24 |
PRODUCTION CONTRACTED DUE TO COVID RESTRICTIONS AND DETERIORATED MARKET CONDITIONS
NGL | ||||||||||
TOTAL NET PRODUCTION | 2Q20 | Natural Gas | LIFTING COST | |||||||
Crude Oil | ||||||||||
(KBOE/D) | (USD/BOE) | -24% | ||||||||
-9.5% YoY | ||||||||||
516 | 530 | 525 | 510 | -8.5% QoQ | -17% | |||||
467 | 473 | |||||||||
12.3 | ||||||||||
11.3 | ||||||||||
9.4
2Q19 | 3Q19 | 4Q19 | 1Q20 | 2Q20 | Jul-20E | 2Q19 | 1Q20 | 2Q20 |
01
02
03
Local prices were impacted by
the collapse in Brent. Average price for April was below USD20/bbl
On May, the government enacted Decree 488/2020 setting
the "Barril Criollo" at USD45/bbl
Natural gas realization price expected to improve based on recently announced new Plan Gas 4
YPF O&G AVERAGE REALIZATION PRICES | ||||||
Crude Oil (USD/BBL) | Natural Gas (USD/MMBTU) | |||||
80,0 | 58.7 | 15,00 | ||||
70,0 | 48.5 | 48.1 | 13,00 | |||
60,0 | 48.5 | 11,00 | ||||
50,0 | 28.9 | 9,00 | ||||
40,0 | 3.9 | 4.0 | 3.0 | 7,00 | ||
30,0 | 2.8 | 5,00 | ||||
20,0 | 2.5 | 3,00 | ||||
10,0 | 1,00 | |||||
0,0 | -1,00 |
2Q19 | 3Q19 | 4Q19 | 1Q20 | 2Q20 |
25
PRODUCTION FULLY RESTORED AT VACA MUERTA
NET SHALE PRODUCTION | 01 | ||||||
+21% | |||||||
(KBOE/D) | |||||||
114.6 | -14% | ||||||
NGL | 98.9 | 02 | |||||
81.9 | |||||||
Natural Gas | |||||||
Crude Oil | 03 | ||||||
2Q191Q202Q20
GROSS LOMA CAMPANA PRODUCTION
(KBBL/D) | Monthly Avg. Crude Oil |
50 | Crude Oil Daily Production | |||||
45 | ||||||
40 | ||||||
35 | ||||||
30 | ||||||
25 | ||||||
20 | ||||||
Jan-20 | Feb-20 | Mar-20 | Apr-20 | May-20 | Jun-20 | Jul-20 |
Positive growth trend continues despite the slowdown in 2Q20
Used large-scale LC as an effective buffer to rapidly adjust production on lower demand
Potential for near-term low- cost expansion at Vaca Muerta based on DUC wells
(71 shale oil and 10 shale gas)
NET PRODUCTION BREAKDOWN | Tight | ||||||||||
Shale | |||||||||||
(KBOE/D) | +21% YoY | ||||||||||
516 | Conventionals | ||||||||||
17.0 | 467 | ||||||||||
15% | -49.8 | ||||||||||
-16.1 | 13% | ||||||||||
16% | |||||||||||
-14% YoY | -21% YoY | 21% | |||||||||
69% | 66% | ||||||||||
2Q19 | Shale | Conventionals | Tight | 2Q20 |
26
HEADWINDS FOR DOWNSTREAM ARE SLOWING DOWN BUT FULL RECOVERY IS YET TO COME
FUELS SALES | 2Q20 (YoY) |
Gasoline -54% | |
(KM3) | Diesel -20% |
CRUDE PROCESSED & REFINERY UTILIZATION
(KBBL/D)
Gasoline | Diesel | Jet Fuel | Jet Fuel -93% |
800 | |||
600 | -34% | ||
400 | |||
200 | -69% | ||
-95% | |||
0 |
450 | 90% | 91% |
400 | 82% |
350
300 263 287 290
250
200
150
100
50
0
86% |
275 |
47%
149 |
64% 69% 60%
205 | 221 | 192 |
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
FUELS BLENDED PRICE VS IMPORT PARITY
(% Difference)
YPF's realization price = | |
30% | Import Parity |
0% | |
-30% |
2Q19 3Q19 4Q19 1Q20 Apr-20May-20Jun-20 | 2Q20 | |
(1) | ||
CRUDE OIL STOCK & PURCHASES TO 3RD PARTIES (1) | Crude oil | |
purchases to | ||
third parties as | ||
(KBBL) | % of total crude | |
oil purchases |
11800 | 21% | 2… | 19% | 20% | 22% | ||||
21% | |||||||||
8,874 | 20% | ||||||||
9,147 | |||||||||
9800 | 8,644 | 8,744 | 8,417 | 8,417 | 19% | ||||
18% | |||||||||
7,626 | 17% | ||||||||
6,965 | 12% | 16% | |||||||
7800 | 15% | ||||||||
14% | |||||||||
13% | |||||||||
12% | |||||||||
5800 | 11% | ||||||||
5% | 6% | 10% | |||||||
9% | |||||||||
3800 | 8% | ||||||||
7% | |||||||||
6% | |||||||||
1% | 5% | ||||||||
1800 | 4% | ||||||||
3% | |||||||||
2% | |||||||||
1% | |||||||||
-200 | 0% | ||||||||
2Q19 | 3Q19 | 4Q19 | 1Q20 | Apr-20 | May-20 | Jun-20 | 2Q20 | ||
27 |
UNPRECEDENTED 30%
COST-CUTTING PLAN reduction target
OPTIMIZING THE
COMPANY'S STRUCTURE
Decentralized operations to improve efficiencies
REVIEWING CONTRACTS
WITH ALL VENDORS
Setting up cells to review over 11,000 contracts
TEMPORARY SALARY REDUCTION & VOLUNTARY RETIREMENT PROGRAM
For non-unionized workers
NEGOTIATING WORKING
CONDITIONS WITH THE UNIONS
Already reached agreements in Santa Cruz, Mendoza & Chubut
CONTRACTS WITH VENDORS
(% of dollar value)
Corporate Upstream
14% 68%
Downstream
18%
28
FINANCIAL HEALTH CONTINUES TO BE AT THE TOP OF OUR AGENDA | ||||||||
CONSOLIDATED | 111 | 47 | ||||||
STATEMENT OF | ||||||||
498 | ||||||||
ADJUSTED CASH FLOW (1) | 1,303 | |||||||
(In Millions of USD) | -286 | |||||||
1,159 | -200 | -26 | ||||||
(1) Cash and equivalents at the beginning of 2Q20 | ||||||||
converted to USD using the March 31, 2020 | ||||||||
exchange rate of Ps 64.37 to U.S $1.00. Cash and | ||||||||
equivalents at the end of 2Q20 converted to USD | ||||||||
using the June 30, 2020 exchange rate of Ps 70.36 | ||||||||
to U.S $1.00. Cash & equivalents include Argentine | M&A(2) | |||||||
sovereign bonds BONAR 2020 and 2021. | Cash & | Operating Cash | Others | Capex | Interest | Net borrowing | Cash & | |
(2) Refers to the sale of: 1) an 11% stake in Bandurria | equivalents at | Flow | payments | equivalents at | ||||
Sur to Equinor and Shell; and 2) a 50% stake in | the end of 1Q20 | the end of 2Q20 | ||||||
offshore area CAN_100 to Equinor in 2Q20. | ||||||||
Adjusted capex to | Successfully rolled | Took advantage of efficient |
preserve liquidity | over maturities and | conditions in the local capital |
extended average life | market - net issuances of | |
over USD 100mn in 2Q20 | ||
and over USD 300mn in 1H20 |
Completed the sale of the 11% stake in Bandurria Sur for ~USD 90mn
29
MANAGEABLE DEBT PROFILE POST LIABILITY MANAGEMENT EXERCISE
Market friendly liability management exercise to proactively address market concerns on short term maturities
Acceptance level
of 58.7% (USD587mn)
Debt life improved
to 5.8 years (pro-forma) from 5.6 years in 2Q19
Net leverage ratio at 2.9x on reduced EBITDA (3)
PRO-FORMA PRINCIPAL | Trade financing | ||||||||||||||
Bank loans | |||||||||||||||
DEBT AMORTIZATION SCHEDULE (1) | |||||||||||||||
Bonds | |||||||||||||||
New 2025 notes | |||||||||||||||
(In Millions of USD) | |||||||||||||||
Exchanged 2021 notes | |||||||||||||||
1,569 | |||||||||||||||
1,254 | |||||||||||||||
1,014 | 970 | 931 | 1,010 | ||||||||||||
772 | |||||||||||||||
643 | |||||||||||||||
269 | |||||||||||||||
1 | |||||||||||||||
2H 2020 | 1H 2021 | 2H 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028+ |
~90% of debt in USD (2)
Avg. interest rates of 7.5% in USD and 30.9% in Pesos (2)
- As of June 30, 2020, converted to USD using the exchange rate of Ps 70.36 to U.S $1.00. Excludes IFRS 16 effects.
- Refers to YPF on a stand-alone basis.
- Net debt calculated as total debt less cash & equivalents. Net debt at period end exchange rate of Ps 70.36 to U.S $1.00
and LTM Adj. EBITDA calculated as sum of quarters. | 30 |
CONTACT | Sergio Affronti |
INFORMATION | |
Chief Executive Officer | |
Alejandro Lew | |
Chief Financial Officer | |
ir.ypf.com | Santiago Wesenack |
inversoresypf@ypf.com | Investor Relations Officer |
Macacha Güemes 515 (CP 1106) Ciudad Autónoma de Buenos Aires Argentina
+54 (11) 5441 1906
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YPF SA published this content on 20 August 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 August 2020 20:27:25 UTC