Ypf Sa Class D · BCBA:YPFD
Ypf Sa Class D — Q1 2018 Earnings Presentation
26 slides from Ypf Sa Class D's earnings presentation, May 9, 2018
Slide 1: 1st Quarter 2018 Earnings Webcast
1ST QUARTER 2018 EARNINGS WEBCAST May 09, 2018
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 Highlights 02 Review of Operations 03 Financial Results 04 Financial Situation 05 Summary 3
Slide 4: Highlights
HIGHLIGHTS Revenues of Ps 75.8 billion (+33.0%) Total hydrocarbon production down 4.2% Recurring Adj. EBITDA (1) of Ps 24.5 billion (+45.7%) Gasoline sales volumes increased by 5.9% Net Income of Ps 6.0 billion Diesel sales volumes up 4.4% Operating cash flow of Ps 21.4 billion (-13.1%) (1) See desc
Slide 5: Contents: Review of Operations
CONTENTS 01 Highlights 02 Review of Operations 03 Financial Results 04 Financial Situation 05 Summary 5
Slide 6: Safety as a Core Value
SAFETY AS A CORE VALUE TOTAL IFR # of people injured for each million hours worked 2008 - 2018 1.89 1.60 1.27 1.05 1.05 0.82 0.91 0.72 0.74 0.60 0.66 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Q1 2018 6
Slide 7: Production
PRODUCTION Total production decreased 4.2%. Natural gas was down 3.5% since there was lower demand of this product in this quarter and crude oil was down 2.7%. CRUDE OIL PRODUCTION NATURAL GAS PRODUCTION TOTAL PRODUCTION (KBBL/D) (MM3/D) (KBOE/D) -2.7% -3.5% -4.2% 573.5 234.0 45.3 227.6 549.6 43.7 Q
Slide 8: Shale Oil & Gas Update
SHALE OIL & GAS UPDATE NET SHALE O&G PRODUCTION SHALE OIL HISTORICAL COST - LOMA CAMPANA (KBOE/D) (USD/BOE) 49.6 Development Cost (2) OPEX 29.6 38.1 32.7 27.2 16.4 16.1 12.0 13.1 <12 15.2 11.6 9.1 <7 2013 2014 2015 2016 2017 Q1 2018 2015 2016 2017 Q1 2018 PRODUCING NEW WELLS KBOE/D Q1 2018 SHALE SHA
Slide 9: Shale Oil & Gas Activity
SHALE OIL & GAS ACTIVITY Ongoing Development BAJO Operated Pilots DEL TORO Continue reducing development and lifting cost in Non-operated CERRO Pilots growth areas and preparing new developments LAS MINAS Volatile Oil to Gas and Condensate PAMPA DE LAS YEGUAS I First 3200m lateral length well drille
Slide 10: Downstream Performance
DOWNSTREAM PERFORMANCE Sales volumes in the domestic market were down by 1.0% due to lower fuel oil sales while higher-value added products sales increased. Refinery output remained essentially flat. CRUDE PROCESSED DOMESTIC SALES OF REFINED PRODUCTS (KBBL/D) (KM3) -1.0% -0.3% 3,952 3,911 291.4 290.
Slide 11: Refined Products Demand
REFINED PRODUCTS DEMAND Strong gasoline and diesel demand pushed volumes sold up 5.9% and 4.4% respectively. Market share increased in both products. MONTHLY GASOLINE SALES MONTHLY DIESEL SALES (KM3) (KM3) + +5.9% +4.4% 500 750 0.8% 480 2018 2017 2018 460 700 2016 2016 440 420 650 2017 400 380 600 3
Slide 12: Gas & Energy Update
GAS & ENERGY UPDATE 1.8 GW(1) of installed capacity in YPF EE. Strong pipeline of projects under construction to reach ~2.4 GW by 2020 Capitalized YPF EE by bringing along GE as partner with 25% share in exchange of USD 275 M, plus a contingent payment of USD 35 M Implied valuation of USD 1,100 M to
Slide 13: Capex Breakdown
CAPEX BREAKDOWN Capex was up 24.5% in peso terms and 1% lower Upstream Activity breakdown: in USD terms. 71.2% in drilling and workovers, 17.6% in facilities, 7.4% in exploration and 3.8% Upstream Downstream in other upstream activities. (IN MILLIONS OF PS) Gas & Energy Others +24.5% 14,874 11,950 D
Slide 14: Contents: Financial Results
CONTENTS 01 Q1 2018 Highlights 02 Review of Operations 03 Financial Results 04 Financial Situation 05 Summary 14
Slide 15: Results Expressed in US Dollars
RESULTS EXPRESSED IN US DOLLARS Recurring Adj. EBITDA increased by 15.8% driven by a 5.8% increase in Revenues above Cash cost increase of 5.2%. REVENUES (1) RECURRING ADJ. EBITDA (1) (2) RECURRING OPERATING INCOME (3) (IN MILLIONS OF USD) (IN MILLIONS OF USD) (IN MILLIONS OF USD) +5.8% +15.8% -5.4%
Slide 16: Operating Income
OPERATING INCOME Recurring Operating Income(1) increased by 19% driven by higher crude oil prices in the Upstream business. OPERATING INCOME (IN MILLIONS OF PS) 11,980 17,354 256 1,249 5,374 4,511 -355 -287 Q1 2017 Upstream Corporate & Downstream Gas & Energy Q1 2018 before Revaluation of Q1 2018 Ot
Slide 17: Operating Income
OPERATING INCOME Revenue increase of 33.0% was higher than the 32.1% increase in cash costs (Cost of Sales + Purchases), resulting in higher Recurring Operating Income(1). OPERATING INCOME (IN MILLIONS OF PS) 1,271 270 18,820 11,980 17,354 -6,950 -5,454 4,511 -5,236 5,374 -1,858 Q1 2017 Revenues Oth
Slide 18: Upstream Operating Income
UPSTREAM OPERATING INCOME Upstream Operating Income was up 138.9% due to a 39% increase in revenues driven by a 54% higher crude oil prices. OPERATING INCOME (IN MILLIONS OF PS) 284 270 10,927 -6,365 -2,256 2,148 899 -1,611 Q1 2017 Revenues Other Expenses Exploration DD&A Production costs Royalties
Slide 19: Downstream Operating Income
DOWNSTREAM OPERATING INCOME Downstream Operating Income decreased by 8% on higher crude oil purchases and fuel imports that more than offset the 37% increase in revenues. OPERATING INCOME (IN MILLIONS OF PS) 16,158 23 4,364 -13,488 -1,295 4,009 -1,246 -507 Q1 2017 Revenues Other expenses Purchases(1
Slide 20: Contents: Financial Situation
CONTENTS 01 Q1 2018 Highlights 02 Review of Operations 03 Financial Results 04 Financial Situation 05 Summary 20
Slide 21: Financial Situation
FINANCIAL SITUATION Strong cash position at the end of Q1 2018 and positive free cash flow. Increase in working capital. CONSOLIDATED STATEMENT OF ADJUSTED CASH FLOWS CASH FLOW FROM OPERATIONS (IN MILLION OF PS) (IN MILLION OF PS) -13.1% 21,426 24,650 21,426 41,674 42,345 -15,794 -4,961 Cash and cas
Slide 22: Financial Situation
FINANCIAL SITUATION Cash position supported by solid operating cash flow generation in Q1 2018. Leverage ratio within the 2x area guidance. FINANCIAL DEBT AMORTIZATION SCHEDULE (1) (2) (IN MILLIONS OF USD) 4,374 2,107 1,642 1,405 80.2% denominated in USD 1,064 867 727 and 19.8% in Argentine Pesos Av
Slide 23: Contents: Summary
CONTENTS 01 Q1 2018 Highlights 02 Review of Operations 03 Financial Results 04 Financial Situation 05 Summary 23
Slide 24: Summary
SUMMARY Reaffirming guidance of +10% EBITDA and production -2% area Strong demand is resulting in continued growth for all our products Improved financial ratios; positive free cash flow Production stabilized in line with our expectations Shale oil and gas pipeline with low development and lifting c
Slide 25: Questions and Answers
Questions and Answers 1st Quarter Earnings Webcast 25
Slide 26: 1st Quarter 2018 Earnings Webcast
1ST QUARTER 2018 EARNINGS WEBCAST May 09, 2018