Ypf Sa Class D · BCBA:YPFD
Ypf Sa Class D — Q2 2017 Earnings Presentation
24 slides from Ypf Sa Class D's earnings presentation, Aug 9, 2017
Slide 1: 2nd Quarter 2017 Earnings Webcast
2nd QUARTER 2017 EARNINGS WEBCAST August 09, 2017
Slide 2: Disclaimer
DISCLAIMER Safe harbor statement under the US Private Securities Litigation Reform Act of 1995. This document contains statements that YPF believes constitute forward-looking statements within the meaning of the US Private Securities Litigation Reform Act of 1995. These forward-looking statements ma
Slide 3: Contents
CONTENTS 01 Q2 2017 Results 02 Financial Situation 03 Summary 3
Slide 4: Highlights
Q2 2017 RESULTS HIGHLIGHTS Revenues of Ps 60.2 billion (+14%) Adj. EBITDA(1) of Ps 16.2 billion (-5.8%) Net Income of Ps 0.3 billion Operating cash flow of Ps 13.0 billion (+96%) Total hydrocarbon production was down 4.2% Total Capex of Ps 13.0 billion (-10.1%) (1) See description of Adj. EBITDA in
Slide 5: Results expressed in US dollars
Q2 2017 RESULTS RESULTS EXPRESSED IN US DOLLARS Adj. EBITDA decreased by 14.8% despite a 3.1% increase in revenues; Ps 1.5 billion one-off gain in Q2 2016 due to the deconsolidation of Maxus explains most of the decline. Revenues (1) Adj. EBITDA (1) (2) Operating Income (1) (in millions of USD) (in
Slide 6: Operating Income
Q2 2017 RESULTS OPERATING INCOME Operating Income decreased by 34.8%, mainly driven by lower crude oil production affecting the Upstream segment. Operating Income (in millions of Ps) 632 62 54 5,318 3,466 -2,600 Q2 2016 Gas & Power Corporate & Other Downstream Upstream Q2 2017 6
Slide 7: Operating Income
Q2 2017 RESULTS OPERATING INCOME Revenue increased by 14%. Cash costs(1) increased 19%, but Purchases were up 32.8%. Operating Income (in millions of Ps) 7,403 -4,231 5,318 -1,878 -1,626 3,466 -709 -716 -95 Q2 2016 Revenues Purchases Cost of sales (2) Other SG&A DD&A Exploration Q2 2017 expenses exp
Slide 8: Upstream
Q2 2017 RESULTS UPSTREAM Upstream Operating Income recorded a loss of Ps 884 million, as Revenues were down due to lower production and higher costs (although below inflation). Operating Income (in millions of Ps) 387 79 1,716 -1,339 -1,233 -345 -95 -884 Q2 2016 Other expenses(1) Royalties Productio
Slide 9: Production
Q2 2017 RESULTS PRODUCTION Total production was down 4.2%. Crude oil production was affected by severe weather conditions and labor conflicts in Q2 2017. Crude oil production Natural gas production Total production (Kbbl/d) (Mm3/d) (Kboe/d) -10.1% -0.5% -4.2% 574.0 242.9 44.8 44.6 550.1 218.3 Q2 201
Slide 10: Shale Oil & Gas Update
Q2 2017 RESULTS SHALE OIL & GAS UPDATE Net Shale O&G production (Kboe/d) Loma Campana horizontal 1,500 meter type well cost (in millions of USD) 34.5 35.3 Well Cost Frac Stages 30.4 17 18 18 26.4 14 16 15.0 9 11.6 16.2 16.6 13.7 10.5 8.2 8.2 (1) 2013 2014 2015 2016 Q1 17 Q2 17 2013 2014 2015 2016 Q1
Slide 11: Shale Oil & Gas Update
Q2 2017 RESULTS SHALE OIL & GAS UPDATE First 2 wells with 2,500m long laterals successfully completed. One with 32 frac stages and the other with 30, both in Loma Campana. Starting hydraulic stimulation in the first pad of 6 wells in line with 2,000m long laterals in El Orejano. Drilled well in El O
Slide 12: Tight Gas Developments
Q2 2017 RESULTS TIGHT GAS DEVELOPMENTS Tight Gas Net Production* - Mm3/d Tight gas production 13.7 13.8 represented 31% of total natural gas production 11.7 in Q2 2017. 9.0 8 new wells in Aguada Toledo, 4 in Rincón 6.8 del Mangrullo and 9 in Estación Fernández Oro. 0.8 2013 2014 2015 2016 1Q 17 2Q 1
Slide 13: Downstream
Q2 2017 RESULTS DOWNSTREAM Downstream Operating Income increased 1.8%. Revenues increased by 10% due to strong sales volumes and slightly higher prices, while costs increased by 10.7% in line with the depreciation of the Argentine peso. Operating Income (in millions of Ps) 4,164 -2,342 3,039 -804 3,
Slide 14: Downstream Performance
Q2 2017 RESULTS DOWNSTREAM PERFORMANCE Sales volumes increased by 1.1% due to higher volumes sold of gasoline and others, mainly asphalts, that more than offset lower volumes sold of diesel and fuel oil. Refinery output increased by 2.2%. Crude processed Domestic sales of refined products (kbbl/d) (
Slide 15: Refined Products Demand
Q2 2017 RESULTS REFINED PRODUCTS DEMAND Strong gasoline demand pushed volumes sold up 8.9%, while diesel demand decline in the power generation market more than offset otherwise strong demand. Monthly Gasoline Sales Monthly Diesel Sales (Km3) (Km3) + +8.9% -4.1% 480 800 0.8% 2015 460 750 440 2016 42
Slide 16: Gas & Power Update
Q2 2017 RESULTS GAS & POWER UPDATE Loma Campana I and II projects expected to add 205 MW in 2nd half of 2017 Tucumán project expected to add 270 MW in the first half of 2018 Wind farm expected to add 50 MW in Q1 2018 and reach 100 MW in Q2 2018 Expected to participate in today’s new power auction Ma
Slide 17: Capex Breakdown
CAPEX Breakdown Capex was down 18.7% in USD terms and 10.1% in Argentine peso terms, mostly due to reduced activity in the Upstream segment and, to a lesser extent, in the Downstream segment. Upstream Upstream Activity breakdown: 71% in drilling Downstream (in millions of Ps) and workovers, 25% in f
Slide 18: Contents
CONTENTS 01 Q2 2017 Results 02 Financial Situation 03 Summary 18
Slide 19: Financial Situation
FINANCIAL SITUATION Strong cash position at the end of Q2 2017; solid operating cash flow due to an improvement in working capital. Second straight quarter of positive free cash flow before interest. Consolidated statement of adjusted cash flows Cash flow from operations (in million of Ps) (in milli
Slide 20: Financial Situation
FINANCIAL SITUATION Cash position strengthened by solid operating cash flow generation in Q2 2017. Leverage ratio within the 2x area guidance. Financial debt amortization schedule (1) (2) (in millions of USD) 3,505 73.2% denominated in USD and 26.8% in Argentine Pesos 2,105 Average interest rates of
Slide 21: Contents
CONTENTS 01 Q2 2017 Results 02 Financial Situation 03 Summary 21
Slide 22: Summary
SUMMARY Strong demand for fuels is evidence of recovering economy Soft fuel prices in the quarter; important increase in July Recent improvement in Vaca Muerta completion services should result in further development cost reduction Complicated quarter for oil production but gas is still strong; expe
Slide 23: Questions and Answers
Questions and Answers 2nd Quarter Earnings Webcast 23
Slide 24: 2nd Quarter 2017 Earnings Webcast
2nd QUARTER 2017 EARNINGS WEBCAST August 09, 2017