Ypf Sa Class D · BCBA:YPFD
Ypf Sa Class D — Q3 2016 Earnings Presentation
23 slides from Ypf Sa Class D's earnings presentation, Nov 9, 2016
Slide 1: 3rd Quarter 2016 Earnings Webcast
3rd Quarter 2016 Earnings Webcast November 9, 2016
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 1 Q3 2016 Results 2 Financial Situation 3 Summary 3
Slide 4: Q3 2016 Results – Highlights
Q3 2016 Results – Highlights Revenues of Ps 55.8 billion (+39.4%) Adj. EBITDA(1) reached Ps 14.6 billion (+9.3%) Operating Income without impairment was Ps 1.6 billion (-71.4%) Impairment charge was Ps 36.2 billion Total Capex was Ps 15.0 billion (-4.7%) Crude oil production was 247.1 Kbbl/d (-0.9%)
Slide 5: Results Expressed in US Dollars
Q3 2016 Results Expressed in US Dollars The devaluation of the local currency resulted in an immediate reduction of Revenues, Adj. EBITDA and Operating Income, which was also affected by higher DD&A. Revenues (1) Adj. EBITDA (1) (2) Operating Income (1) (in millions of USD) (in millions of USD) (in
Slide 6: Operating Income
Q3 2016 Operating Income Operating Income before impairment charge was down 71.4%. (in millions of Ps) 5,631 -2,404 1,610 -1,120 -497 (1) Q3 2015 Downstream Upstream Corporate & Other Q3 2016 (1) Operating Income before impairment charge of Ps 36.2 billion in Upstream segment. 6
Slide 7: Operating Income
Q3 2016 Operating Income Revenue increase of 39% was not enough to offset higher cost of sales, purchases and higher depreciation on our dollar-based assets. (in millions of Ps) 15,793 870 -7,544 -5,458 5,631 -4,932 1,610 -2,284 -466 Q3 2015 Revenues Exploration Cost of sales DD&A Purchases SG&A Oth
Slide 8: Upstream Results
Q3 2016 Upstream Results Upstream Operating Income before impairment charge was down 51.6% mainly due to higher increases in cash costs (other than lifting cost) and DD&A vis a vis increase in prices in pesos. (In million of Ps) 741 870 7,605 -4,942 2,171 -3,836 1,051 -1,558 (1) (2) Q3 2015 Revenues
Slide 9: Upstream Results – Production
Q3 2016 Upstream Results – Production Total production was up 1.3%, driven by 1.1% growth in natural gas and 14.8% growth in NGL; crude oil production was down by 0.9%. Crude oil production Natural gas production Total production (Kbbl/d) (Mm3/d) (Kboe/d) -0.9% +1.1% +1.3% 579.3 249.3 247.1 571.9 44
Slide 10: Shale Development Update
Q3 2016 Shale Development Update Gross Shale O&G production Loma Campana horizontal wells cost (Kboe/d)* 58.2 Well Cost Frac Stages 17.3 50.6 51.6 16.9 49.8 15.6 46.2 14.3 41.7 43.3 38.0 8.8 31.7 22.7 19.0 16.2 16.6 13.6 11.0 9.5 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2013 2014 2015 H1 2016 Q3 2016 2014 2
Slide 11: Vaca Muerta - recent agreement with Neuquén
Q3 2016 Vaca Muerta - recent agreement with Neuquén Extension of pilot programs in core areas, 11 contracts with Gas y Petróleo de Neuquén La Amarga Chica and Bajada de Añelo (GyP) on core areas maturing within 2016 and until December 2019 and Bandurria 2017 shifted to 2 developement concessions Sur
Slide 12: Tight Gas Production
Q3 2016 Tight Gas Production Tight gas production Tight Gas Gross Production - Mm3/d 11.7 11.0 represented 21% of total natural gas production TG EFO Lajas TG RdM Mulichinco 9.0 in Q3 2016. TG ATSB Lajas 8.4 7.9 8.1 7.3 6.7 6.9 New compression facilities in RdM enabled significant 5.3 production-per
Slide 13: Downstream Results
Q3 2016 Downstream Results Downstream Operating Income declined 68.3% as revenue increase was below the increase in purchases; volumes sold were below expectations. (in millions of Ps) 14,711 3,522 -13,231 -1,670 1,118 -1,345 -596 -273 Q3 2015 Revenues Purchases Production SG&A DD&A Other expenses Q
Slide 14: Downstream Results - Sales
Q3 2016 Downstream Results - Sales Refinery output affected by maintenance activity in our Luján de Cuyo refinery; sales volumes were down by 1.1% due to lower diesel and gasoline demand. Crude processed Domestic sales of refined products (kbbl/d) (Km3) -1.7% 4,308 -1.1% 4,259 Others 297 LPG 292 Fue
Slide 15: Downstream Results – Demand
Q3 2016 Downstream Results – Demand Gasoline and diesel sales were down by 2.5% and 4.2%, respectively; slight reduction in market share. Monthly Gasoline Sales (Km3) Monthly Diesel Sales (Km3) 480 - 2.5% 800 + -4.2% 0.8% 460 2015 750 440 2014 420 700 2014 400 650 2015 380 2016 2016 360 600 340 550
Slide 16: Capex
Q3 2016 Capex Capex was down 41.1% in USD terms and 4.7% in pesos, mostly due to reduced activity in the Upstream segment. Upstream Downstream (in millions of Ps) Upstream Activity breakdown: 69% in drilling Others and workovers, 19% in facilities and 12% in exploration and other upstream activities
Slide 17: Contents
Contents 1 Q3 2016 Results 2 Financial Situation 3 Summary 17
Slide 18: Cash Flow From Operations
Q3 2016 Cash Flow From Operations Strong cash position by the end of Q3 2016; Operating Cash Flow was up due to reduction in working capital mainly related to collection of 2015 gas receivables. Consolidated statement of cash flows Cash flow from operations (in million of Ps) (in million of Ps) 26,6
Slide 19: Financial Situation Update
Q3 2016 Financial Situation Update(1) Cash position strengthened by new debt issuance and unusual strong cash flow generation in the quarter. Financial debt amortization schedule (1) (2) (in millions of USD) Debt profile highlights 2,960 74% denominated in USD, 23% in Pesos and 3% in CHF 617 1,960 A
Slide 20: Contents
Contents 1 Q3 2016 Results 2 Financial Situation 3 Summary 20
Slide 21: Summary
Q3 2016 Summary Maintained production in line with previous year and budget, despite reduction in capex Lifting cost reduction in dollars; labor productivity discussions under way Improve operating cash flow by reduction in receivables Ample liquidity; leverage above target Recorded USD 1.5 billion
Slide 22: Questions and Answers
Questions and Answers 3rd Quarter 2016 Earnings Webcast
Slide 23: 3rd Quarter 2016 Earnings Webcast
3rd Quarter 2016 Earnings Webcast November 9, 2016