Ypf Sa Class D · BCBA:YPFD
Ypf Sa Class D — Q2 2019 Earnings Presentation
18 slides from Ypf Sa Class D's earnings presentation, Aug 9, 2019
Slide 1: 2nd Quarter 2019 Earnings Webcast
2nd QUARTER 2019 EARNINGS WEBCAST AUGUST 9TH, 2019
Slide 2: Important Notice
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 stateme
Slide 3: Safety and sustainability embedded in daily activity and corporate strategy
SAFETY AND SUSTAINABILITY ARE EMBEDDED IN OUR DAILY ACTIVITY AND CORPORATE STRATEGY TOTAL IFR # of people injured for each million hours worked 2009 – 1H 2019 1.89 ESG REPORTING • 2018 Sustainability Report available by end of August • Continue tracking ESG score under Dow Jones 1.27 Sustainability
Slide 4: Financial highlights
2nd QUARTER 2019 Financial highlights Revenues of Ps 160.3 billion (+72.3%) Adjusted EBITDA(1) of Ps 41.6 billion (+67.8%) Operating cash flow of Ps 40.7 billion (+47.6%) CAPEX(2) of Ps 48.8 billion (+152.4%) Hydrocarbon production down 5.3% Net shale oil production up 57.5% (1) See description of A
Slide 5: Revenues declined 7% in USD mainly due to lower natural gas and downstream sales
REVENUES DECLINED 7% IN USD MAINLY DUE TO LOWER NATURAL GAS AND DOWNSTREAM SALES WHILE MARGINS REMAINED FAIRLY STABLE REVENUES (1) ADJUSTED EBITDA (1) (2) CAPEX (1) (3) (In Millions of USD) (In Millions of USD) (In Millions of USD) -7.3% -10.2% +35.2% 3,963 1,114 3,672 1,056 199 948 824 915 +11.0% Q
Slide 6: Adj. EBITDA increased in Q2 2019 mainly driven by the upstream business
ADJ. EBITDA INCREASED IN Q2 2019 MAINLY DRIVEN BY THE UPSTREAM BUSINESS ADJUSTED EBITDA (In Billions of PS) 1.1 41.6 2.7 3.2 9.8 23.1 24.8 7.2 1.7 -34.4 Operating Non-cash Adj. EBITDA Q2 Upstream Downstream Corporate & G&E Adj. EBITDA Q2 Non-cash Operating Income Q2 expenses (1) 2018 Eliminations 20
Slide 7: Positive free cash flow before acquisitions
POSITIVE FREE CASH FLOW BEFORE ACQUISITIONS CONSOLIDATED STATEMENT OF ADJUSTED CASH FLOW (1) Q2 2019 FREE CASH FLOW (2) (In Billions of PS) (In Billions of PS) 18.4 40.7 40.7 68.2 -48.5 67.2 -8.4 -3.2 1.0 -39.7 -4.3 Cash & Cash flow Net financing Capex Interest Others Cash & -4.1 -0.4 -7.8 CFO Capex
Slide 8: Back to global markets; solid cash position
BACK TO GLOBAL MARKETS; SOLID CASH POSITION PRINCIPAL DEBT AMORTIZATION SCHEDULE (1) (2) USD denominated debt Peso denominated debt DETAILS (In Millions of USD) 2,265 92% denominated in USD and 8% in Argentine Pesos 1,587 Average interest rates 1,491 of 7.54% in USD 1,450 and 44.76% in Pesos 1,082 9
Slide 9: Lower natural gas demand and Argentina's blackout impacted total production
LOWER NATURAL GAS DEMAND AND ARGENTINA’S BLACKOUT IMPACTED TOTAL PRODUCTION TOTAL PRODUCTION PRODUCTION BREAKDOWN (KBOE/D) NGL (KBOE/D) Conventionals Shale + Tight Natural Gas -5.3% Crude Oil 26.7 544.6 544.6 -5.3% 515.7 515.7 -36.5 -19.1 28% 31% -8.8% +6.0% QoQ 72% 69% -1.0% Q2 2018 Q2 2019 Q2 2018
Slide 10: Continue increasing net shale production and reducing costs
CONTINUE INCREASING NET SHALE PRODUCTION AND REDUCING COSTS NET SHALE O&G PRODUCTION(1) NGL SHALE OIL DEVELOPMENT COST - LOMA CAMPANA(2) (KBOE/D) (USD/BOE) Natural Gas +47.9% 82.4 Crude Oil 18.0 15.0 11.0 55.7 ~9 +15.8% QoQ 2016 2017 2018 H1 2019 +57.5% SHALE OIL OPEX COST - LOMA CAMPANA (USD/BOE) Q
Slide 11: Unlocking value of shale oil acreage
PBN CLUSTER OIL N°2 UNLOCKING VALUE OF ChSN SHALE OIL ACREAGE PH FMo N CLUSTER OIL N° 1 BDT DEVELOPMENT EXPANSION LdM Loma Campana, La Amarga Aguada del Chañar SDH Chica & Bandurria Sur acquisition CLMi BdT Curve Type 2018 LaMa 1.800 Qo BdT.x-6(h) CLUSTER OIL N° 2 Normalized Oil Production (bbl/d pe
Slide 12: Crude processed volumes affected by Argentina's blackout; domestic sales decrease partially offset by exports
CRUDE PROCESSED VOLUMES AFFECTED BY ARGENTINA’S BLACKOUT; DECREASE IN DOMESTIC SALES WERE PARTIALLY OFFSET BY HIGHER EXPORTS CRUDE PROCESSED SALES OF REFINED PRODUCTS (KBBL/D) (KM 3) -4.4% -3.5% 4,440 4,285 275.0 262.8 Exports -2.1% Others GLP Fuel Oil JP1 Gasoline -2.1% Diesel Q2 2018 Q2 2019 Q2 20
Slide 13: Fuel demand dropped during Q2 2019 due to market contraction
FUEL DEMAND DROPPED DURING Q2 2019 DUE TO MARKET CONTRACTION MONTHLY GASOLINE SALES MONTHLY DIESEL SALES (KM3) (KM3) 500 -2.1% 750 -2.1% 2018 YoY YoY 480 2017 700 2018 460 650 2017 440 2019 600 420 2019 400 550 380 500 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug S
Slide 14: Lower downstream margins; expect margins recovery in 2H19
LOWER DOWNSTREAM MARGINS; EXPECT MARGINS RECOVERY IN 2H19 DOWNSTREAM ADJUSTED EBITDA(1) F.O.B. REFINERY/TERMINAL PRICE (2) Excluding inventory revaluation (USD/BBL) Gasoline Diesel (USD per refined barrel) 96 96 88 93 92 16.5 16.6 92 92 86 86 85 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 7.3 7.2 4.7 CR
Slide 15: Gradual adjustments in fuel prices to bridge gap with import parity
GRADUAL ADJUSTMENTS IN FUEL PRICES TO BRIDGE GAP WITH IMPORT PARITY FUELS BLENDED PRICE VS IMPORT PARITY(1) (% VARIATION) Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 * Fuels Blended Price Import Parity (1) Impor
Slide 16: Summary
SUMMARY Maintaining safety and sustainability efforts Increasing focus on shale oil developments and preparing new wave of developments Shale oil production offsetting conventional oil decline Activating levers to generate natural gas demand Adj. EBITDA in USD decreased due to lower natural gas reve
Slide 17: Questions and Answers
2nd Quarter Earnings Webcast QUESTIONS AND ANSWERS 17
Slide 18: YPF Investor Center
YPF TRANSFORMING LIVES YPEF THROUGH ENERGY INVESTOR CENTER