Ypf Sa Class D · BCBA:YPFD
Ypf Sa Class D — Q3 2019 Earnings Presentation
18 slides from Ypf Sa Class D's earnings presentation, Nov 8, 2019
Slide 1: 3rd Quarter 2019 Earnings Webcast
3rd QUARTER 2019 EARNINGS WEBCAST NOVEMBER 8TH, 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: The Argentine Context
THE ARGENTINE CONTEXT Political uncertainty between general and primary elections Devaluation of peso Weak economic activity Freeze on crude and fuel prices Continued deterioration of natural gas prices 3
Slide 4: Safety and Sustainability Are Embedded in Our Daily Activity and Corporate Strategy
SAFETY AND SUSTAINABILITY ARE EMBEDDED IN OUR DAILY ACTIVITY AND CORPORATE STRATEGY TOTAL IFR 2018 Sustainability # of people injured for each million hours worked 2009 – 9M 2019 Report published 1.89 1.27 1.05 1.05 0.82 0.91 0.72 0.74 0.60 0.51 0.45 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Slide 5: Main Figures
3rd QUARTER 2019 Main figures Revenues of USD 3,309 million (-12.6%) Adjusted EBITDA(1) of USD 977 million (-15.0%) Operating cash flow of USD 1,196 million (+18.9%) CAPEX of USD 810 million (-4.8%) Hydrocarbon production flat at 530 Kboe/d (1) Adjusted EBITDA = Operating income + Depreciation and i
Slide 6: Adj. EBITDA Decreased in Q3 2019 in USD Mainly Affected by the Upstream Segment
ADJ. EBITDA DECREASED IN Q3 2019 IN USD MAINLY AFFECTED BY THE UPSTREAM SEGMENT ADJUSTED EBITDA (In Millions of USD) 114 118 754 1,150 -60 977 -345 396 200 -777 Operating Non-cash Adj. EBITDA Q3 Downstream Corporate & G&E Upstream Adj. EBITDA Q3 Non-cash Operating Income Q3 2018 expenses (1) 2018 El
Slide 7: Financial Discipline: Funding Capex with Internal Cash Flow Generation
FINANCIAL DISCIPLINE: FUNDING CAPEX WITH INTERNAL CASH FLOW GENERATION CONSOLIDATED STATEMENT OF ADJUSTED CASH FLOW (1) CUMULATIVE FREE CASH FLOW (2) (In Millions of USD) (In Millions of USD) 1,196 526 1,587 -804 310 -418 -243 1,042 -276 135 Cash & Cash flow Capex Net borrowing Interest Others Cash
Slide 8: Financial Discipline: Successfully Managing Our Short Term Maturities
FINANCIAL DISCIPLINE: SUCCESFULLY MANAGING OUR SHORT TERM MATURITIES PRINCIPAL DEBT AMORTIZATION SCHEDULE (1) (2) DETAILS OF Q3 2019 (In Millions of USD) 2,263 ~90% of our cash & debt Bonds Trade financing denominated in USD Bank loans Average interest rates 1,495 of 7.6% in USD 1,436 and 55.8% in P
Slide 9: Total Hydrocarbon Production Remained Stable Driven by Shale Growth
TOTAL HYDROCARBON PRODUCTION REMAINED STABLE DRIVEN BY SHALE GROWTH NGL PRODUCTION BREAKDOWN Conventionals TOTAL PRODUCTION (KBOE/D) Natural Gas (KBOE/D) Shale + Tight Crude Oil 0.2% 529.1 530.0 44.4 +5.9% 529.1 530.0 -35.4 -8.1 28% 35% -0.1% +2.8% QoQ 72% 65% -0.2% Q3 2018 Shale Conventionals Tight
Slide 10: Ramp-up in Shale Activity Brought Production Up 77% YoY
RAMP-UP IN SHALE ACTIVITY BROUGHT PRODUCTION UP 77% YoY NET SHALE O&G PRODUCTION AVERAGE CUMULATIVE OIL PRODUCTION (KBOE/D) (KBBL; STANDARDIZED AT 2,000 meters) NGL Natural Gas 350 2 wells +77.1% 102.1 Crude Oil 300 250 37 wells 8 wells 11 wells 57.7 +24.7% +100.6% QoQ 200 20 wells 150 2 wells +54.9
Slide 11: Loma Campana: Continuous Costs Improvement; Switching to HDC
LOMA CAMPANA: CONTINUOUS COSTS IMPROVEMENT; SWITCHING TO HDC DEVELOPMENT & OPEX COST DRILLING COST (USD/BOE) (USD/lateral foot) 18 628 Development Opex 606 15 583 12 11 545 ~10 524 9 6 ~5 2016 2017 2018 9M 2019 2017 2018 Q1 2019 Q2 2019 Q3 2019 SHALE OIL STAGES & WELLS HORIZONTAL LENGTH COMPLETION C
Slide 12: Strong Natural Gas Production Due to Seasonal Demand; Lower Prices
STRONG NATURAL GAS PRODUCTION DUE TO SEASONAL DEMAND; ENVIRONMENT OF LOWER PRICES NATURAL GAS PRODUCTION GAS REALIZATION PRICE (MM3/D) (USD/MMBTU) Avg. 4.5 43.7 44.0 Sep 43.7 43.6 4.0 3.5 40.1 36.8 34.7 7.7 6.1 2.6 1.2 1.3 1.3 0.8 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q3 2018 Q3 20
Slide 13: Increased Processed Volumes and Exports Amid Lower Internal Demand
INCREASED PROCESSED VOLUMES AND EXPORTS AMID LOWER INTERNAL DEMAND CRUDE PROCESSED SALES OF REFINED PRODUCTS (KBBL/D) (KM 3) +2.6% -0.4% 4,493 4,474 287.4 +23.9% 280.2 Exports -1.8% Others GLP Fuel Oil JP1 Gasoline -5.6% Diesel Q3 2018 Q3 2019 Q3 2018 Q3 2019 13
Slide 14: Recovery in Downstream Margin; Freeze in Prices Widened Gap with Import Parity
RECOVERY IN DOWNSTREAM MARGIN; FREEZE IN PRICES WIDENED GAP WITH IMPORT PARITY DOWNSTREAM ADJUSTED EBITDA(1) (2) FUELS BLENDED PRICE VS IMPORT PARITY(3) Excluding inventory revaluation (% VARIATION) (USD per refined barrel) 12.1 11.2 10.4 Fuels Blended Price Import Parity 2017 2018 9M 2019 (1) Amoun
Slide 15: Current Prices at the Pump at Low Historical Levels
CURRENT PRICES AT THE PUMP AT LOW HISTORICAL LEVELS FUELS BLENDED PRICE AT THE PUMP (1) (USD/liter) 1,5 1,4 1,3 1,2 1,1 1,0 0,9 0,8 0,7 (1) Weighted by sales volumes of our regular and premium diesel and gasoline. (*) October and November 2019 prices are preliminary. November 2019 prices as of Novem
Slide 16: Summary
Focus on financial discipline SUMMARY Unconventional production growth compensating conventional production decline Transition of natural gas market Challenging fuel pricing scenario Active portfolio management • Adjusted EBITDA $3.7bn 2019 • CAPEX $3.2bn Guidance Update • Production -3% area • Net
Slide 17: Questions and Answers
3rd Quarter Earnings Webcast QUESTIONS AND ANSWERS 17
Slide 18: YPF
YPF TRANSFORMING THROUGH YPF LIVES ERGY INVESTOR CENTER