YPF Sociedad Anónima (YPF) 12 May 222022 Q1 Earnings call transcript

Good morning. My name is Savannah, and I'll be your conference operator for today. At this time, I'd like to welcome everyone to the YPF First Quarter 2022 Earnings Webcast Presentation. Today's call is being recorded. All lines have been placed on mute to prevent any background noise. remarks, be speakers' question-and-answer the after there a will session. And Thank you. Instructions] [Operator And conference turn Calderone. to I'd like now the over Pablo to Please go ahead.

IR our quarter myself. XXXX Good Pablo call. Lew; This joining gentlemen. and and be earnings Affronti; today Manager. conducted our will YPF, Alejandro by us first morning, for Sergio Thank our This in presentation you CEO, ladies Calderone, is CFO,

the finally, main first During will aspects events go the presentation, call our And we that the quarter up through results. questions. we will open explain your and for

begin, subject Before your our to attention X. remarks statement would Please we our Slide are answer and questions I your may like to on that today to include draw cause the exchange financial take forward-looking using our consideration into and to expectations figures which cautionary dollars. that results in the from reach risks be rate note by different uncertainties these Also, U.S. main contemplated could actual calculations to remarks. materially to statements,

financial may discuss in Our go we EBITDA. measures Please, as such the to the non-IFRS I Sergio. accordance but adjusted during call figures Sergio, with now some call, turn IFRS, ahead. stated will are

everyone, Thank and Pablo. morning, morning. joining thanks, Good this us you, for

report to We are guidance and our delivering year the on ambitions operational across beginning just robust and of key our metrics, year. financial for the

The adjusted quarter per previous EBITDA, from for was positive growth almost of also result quarter higher And year-over-year on as equivalent going environment well last a to local Wholesale and the billion of at compensate for a a the and as of commented sales. of again. fuel to year-over-year average increase also on reached the of the prices revenues our contributed $XXX which bring at previous coupled a another of it trend, quarter, flat line versus million fuel segments the domestic on strategy the Adjusting lower partially about in our Retail oil XX% call. currency, quarter, expenses a the while in the both positive XX% pricing a during operating This to $X from to expanding our interest prices our rallying during operations. basis. along overall our for the products, expansion with over within evolution territory higher the in quarter, basis a positive continued Brent-referenced the EBITDA results in prices. reference affecting market XXX,XXX way the production earnings Net outstanding track back XX% we shale remaining stood in production quarter During barrels international have net adjusted positive prices our managed hydrocarbon devaluation managing total latter, XX% previous X% quarter The yet once and a on the permitted quarter. the income with day, bottom come increase to

in for QX, we a in terms basis. have earning call. good increase million amounted on CapEx our XX% our towards plan Total last year representing year-over-year activities, investment ambitious our announced In of progress $XXX the an of made

our in second some Although the to fully with some of shall on catch half back and this expected regained campaign-driven the includes slightly completion speed delays early in shale $X.X in of CapEx billion related within full-year January, lower operations, primarily thus COVID-related upside. weather our guidance than delivering restrictions up bias already on the we and have February,

organic years. result in ability last the our our which deliver to we in remain on and them, of goals the surpassing the confident in for growth production considering XX the also year highest even In addition, scenario shall

to continue $XXX below leverage billion, side, consecutive the pushing quarter X.Xx. our cash having positive balance allowed delivering net $X.X by our eighth million. flow the On represented rate strengthening free us sheet our financial to of XXXX quarter net This the reducing first debt has

by to on sustainability focused of with and delivery provide potency remarks and opportunities the are results operating and remains unique to further the progress. details of some growth to on quarter. my although reinforce the that our delivering achieved this I proud steadfast and during profitability so close our ahead. of financial very our me while shall of now forefront continue a for the on at saying challenging, global remain and that doing Let the be environment we decisions financial with In local turn maintaining highly our conditions context, Alejandro we quarter lie volatile view results opportunities the you

Thank and to all. you morning good you, Sergio,

X% proceeding Let by fully me once the and XX gas per day Crude comments quarter. production day, performed day, NGLs when recovered X% oil and on the the Total in production expansion natural oil cubic production increase activities basis our gas in a million barrel about to path processing begin began XXXX program The after when oil when over XX% expected. reaching by a in a a came compared continued first remains quarter. way day, production barrels of expanding the evolution year-ago, XXX,XXX meters with at equivalent increasing by of evolution the that during previous the sequential per the XXX,XXX barrels on with oil as XX,XXX meaningful restored operations averaged were hydrocarbon a compared quarter per of and as quarter. MEGA's gas to flat remarkable showing positive the growing again of and plant maintenance at and production average Sergio's

which reach the rack development compared continuous plan. although when which production from X% shale same it last of quarter crude previous both increase only of period gas, by the production, our almost Manantiales declined our new very to our year. of The compared natural comparison as and doubled On on at declined to helped production year. And large EOR the to in by with continues extent contribution the last to the back the conventional rapid X% by response operations a encouraging is the records positive our Behr, when of

per inventory during costs barrel, negotiated combined accelerated lifting $XX.X quarter previous wage the and overall versus quarter, despite averaged devaluation. costs, currency that of conditions with X% previously an the the to environment with inflationary Moving of the as unions, impacted the part increases pace down slower

by as international volatility Regarding references producers a between segment, out the refiners $XX barrel, way negotiated average into increased crude Upstream and price to being smooth local pump oil prices within crude local realization in in of sequential per on continues basis the to a local impact the prices. X%

side, projected a as average were of BTU. million the in an beginning originally initiated the Zooming operated we operations, with had we of year. $X.X our the behind positive with prices XX during complete new wells continuing shale of total a On wells But our quarter, performance, last evolution we the compares a flat total schedule of trend horizontal at natural horizontal per although at XX completed into gas of blocks, remain this historical to positively quarter. in the

already is la during have in exceeding quarter expecting for during April, catch gas wells the almost the over However, during And to our regained the On up further as to doubled our to shale the increased maintaining of to previous initial introductory compared also total even and year, production rest production quarter and located well we finished shale the shale third block, and in remarks while XXX% second guidance. quarter the in full-year expect expansion. in fracture when our outside new the potentially our same his shale basis, block fully core have based shale just we Loma the tie-ins oil end production by year, area. a of the Overall, and quarterly Lajas well oil led both targeting increased first It the results before XX% production by Sergio during drilling highlighting production staggering have into and hub Lata by at XX%. on the gas worth we respectively. delineation expansion and commented our that year. momentum, is in Este which drilled And is a owned YPF X%

capacity our the coordinated a last including XX% barrels capacity cubic concluded, four production for service in efforts initiatives the cubic between three initial day by XX,XXX coordinated of expansion that Within a that the recently putting that is months take phases. results. midstream our Short-term first years, idled major have are have is should to polymers. over works now worth XX,XXX the in of performance the barrels our programming addition to have further expansion block and that day, XX focused at day the highlighting pump ramp-on the already oil restrictions core Oldelval been the the the which meters some per been latter, and QX, positive Orejano stations meters year. led day on expansion render with two production team produce to the per total of evacuation about X,XXX This It in increasing have very potential full positive system close lifted with the hub, as total evacuation El XX,XXX to was a incorporated in delivered by started

expected phase next of is and to and mid year which of first XXXX. up second The end before be the the by running

of effects further In to shale teams technical introduce to operations, terms counteract our the to context and efficiencies of continue accelerating materials. waste costs higher negotiations the our in within rising relentlessly of work improvements operating

which example As stages as very of and as COX simultaneous by both per speed, Loma or these close an turn efforts, declined full about our of in Campana, to in pilot first of which XX fracking in reducing encouraging consumption emissions, XX%. have fuel by results, week, in we completed XX% achieving terms reduced was last month, well

quarter domestic contraction operations, seasonal sales of year, versus in diesel Looking into average despite our in first remains quarter on the the an based X% downstream demand previous strong and factors. fuels the gasoline

total our pre-pandemic of higher day, worth processing average an in of level levels. with levels quarter. our meet this run QX, expanded managed increasing negotiations of high taking down XXXX capacity. volumes, X% XX% XX% is with refineries the to the the with highlighting previous XXX,XXX rallying that in parties XX% producers levels in a to the dispatched XX% of utilization depends To total we barrels historical line levels to represented in demand, from Our March evolution from by our context at purchases average In the It prices, sequentially parties quarter from of X%. fuels at on crude our third total full crude utilization which refineries, third during continue processing still to rate local exceeded reliance on international complex processed purchases given

to have fuel incremental have having against gasoline albeit and effect diesel this to impact these extent mitigate extent logistics measured levels minimize the as a managed marginal prices total historical well average previous QX economic our in inventory supplied vis-a-vis regular losses, keeping our segments by QX sales. although above of historical from lead of average translating Total at down certain sold as prices domestic the result imports average to in imports Therefore, while to of during to when XX% higher As primarily of in refineries, the of but and the a declined jet thus still wholesale quarter the processing disruptions a large in certain the fuels, And we XX% imported country. total regions the first in lesser well management XXXX, about represented our still parity market, fuels clients fuel we import although above X%. quarter.

pump retail which our affect about revenues. Regarding XX% total of prices,

last in with first line in dollar depreciation average of the adjusted an whereby prices. fuels we time the the a about strategy higher pump prices ago, of further call, pesos international quarter, this we During trend our aim This earnings X%. driving commented XX%, one by we and at the by days the mitigating effects about during more was prices a currency reducing XX%, partially international in gap follow with time, few adjusted Furthermore, parities. by prices

our Auro, virgin propane and so fuel, Elaion others. the of products environment benefiting received products on have lubricant pricing as benefiting which continue has that market. revenues. And launched well about segments, include which new during correlate the prices, we continued by our jet quarter, been with QX, during the lubricants, from from naphtha high among total addition, represent well to international far we these petrochemicals as These XX% a In premium

another the last netting after quarter cash of the performance operating earnings adjusted during cash and quarter $X.X operating generation the cash financing by first healthy This the program, positive yet reduction capital to EBITDA XX% positive free in resulted added interest in were environment, pricing On sequentially billion, of back strong with resulted the $XXX effects in some solid to as cash which of our before flow increased contributions in the the million first combined expense that even CapEx delivering working anticipated call, debt results. our quarter. flow, continued

computed the of to serve positive cash and that to ambition therefore flexibility million have the balance eighth We quarter our sheet $X.X growth free provide us flow, with consecutive strengthen almost accumulating tackling financial continue opportunities. our needed

the an liquidity. from portion In FX consolidated increase in a asset terms if our in continued prevent inflation limited net during a total exposure, of context exposure of in given and In with foreign currency fall approach the to considering larger would management, in a holding to we in the liquidity quarter, of the the our consider indexed that currently exposure, instruments that invested regulations available cash of of we currency. management local force minimize instruments proxy-hedge to sense, liquidity the active us net dollarized of a we during liquidity Nevertheless, XX% the quarter, XX%. with ended exposure as FX market

our dispersed payment and with also international the was Central achieved worth practically first liquidity leverage the $XXX short-term on with FIX, financial let our our first XXXX restrictions local conclude our thus interference, continuous March. questions. cross-border to during net regulatory million by And which to call in AA+ generated on quarter, led $XXX a of amortization coming the us April day last complying increased upgrade which with maturities our to given our ratio, the into improvement is the of performance financing have official further short-term in maturities to now cash relationship incremental continuous free flow bond me finishing This quarter between back I FX the we historical and the all A/B debt noting to CAF. amortization, greatly XX liquidity reduction we that And before million in the X.XXx. Bank quarter, and for the the contributed profile, fully by exceeding the mention me operating market the months. It without due the metrics. access recent communicated for Looking robust debt this, during highlight AA, loan and the ratings also in the And on let the next highlighting of our due covering rating to proceed of X, the that local presentation, your from permitted presentation today open issuer and declined

[Operator Instructions] first of go America. McGann come Bank will ahead. Our Please question Frank with from

good Okay. very you Thank and day. much

soon. be least and out remind going to when What phase year-end growth, the there's thought to incremental of much you next were Just I going the the to there the you terms believe on to we see like when stream? per European have and on potentially you you will the obviously how you thought end And and meters gas XX-ish, you the trying how particularly second what already in do that the be two, gas at could get you construction much in much years? gas see mean wondering just to pretty And gas I like of more How your expectations supply mean potential tell the new was fill to the pipeline Oldelval to that cubic can increases? look globally across issues over term, start to on now grow project. on you the going high I'm for Could of it an think looking seems forward. couple would to guess the that the back pipeline? to to years then, and XX,XXX also, you even second over for that a process prices for the are expect it start that And side, being next real seems at And just longer that comments I think it and that what coming accelerate phase. board, seems as partially. that growth seven you day your continue given that will five, do there's expecting in LNG was with us us or and and capacity are fairly ability increase XXXX It's wondering

Frank, morning, Good Okay. your thanks for questions. and

we Oldelval, of increasing of remain terms about about proportion share expansions. same of current the one, as XX% On capacity expect today, transportation oil, have for in to in the we for transportation in first capacity future the – would roughly the transportation

will So capacity line capacity Oldelval the to day, our XX% portion those But about to the contractual expect of we half on on have reminder coming transportation next the is of that of already enter our at is different now, increased into roughly then take the roughly an already that depend how transportation come that new But the remain a line. has on And year XX would capacities contractual of about producers, by them. roughly which capacity. that months roughly for about same barrels proportion remain XXXX, capacity first should XXX,XXX speaking, XX,XXX first We to speaking, a processes the – will the we refusal of by to coming on speaking some before based cubic and of to capacity pursue terms in roughly which type actually X,XXX day in end of based expect meters use transportation new will proportions which auction on on the up processes of expect the incremental coming probably side of for additional or come a expected the the the a barrels the would will XXXX. line, course, day least of on months. same, about that year, that fill actually and by

your that. second of on gas construction that, question government to the the is but pipeline, pursuing not are clearly of Moving the part we rather

are hearing We along that well. moving relatively it's

have And so for incremental the out Vaca – something XX still available of whether day Muerta first the the so for contract million be by that out winter winter capacity. an something of of to comes cubic place seen order winter government But not of some the we that XXXX, would of the to auction like to auction expect the phase yet by still in gas incremental took expect for for the for incremental gas a probably capacity the something portion the similar a that, year. We be similar we meters transportation capacity, next or seen of to with opportunities to planned last XXXX.

the Of And will is to course, information market no ability when on out that out required, determine happen. to on commitments of deliver might will ability what depending that there and to part auction, in of that extent will be that to we auction. be specific be our be yet to that, able actually as the we our figure and will part that

away asked such we opportunities, as – are a a probably XXXX. So generally transportation ready from probably or a new cubic portion day LNG few the materialization from of still available available more end and you and the basis, on an be probably to next XX longer winter similar year for another that that the by term winter of next of something plant. clearly then million for the of LNG And years expect speaking, we will actually meters still

very for analysis, is few and working whether but it – or the years and and As at such aggressive to I materialize preemptive likely a doing requires. – terms be capital are you construction But in a take some this on we several know, project say, engineering challenging very, clearly, project next would point that it say, to the conceptual of it's would in will years. of that it

move believe that is that with ahead we and I YPF say do an So processing the specific the is Vaca definitely point, at will be to we there Muerta monetize far, that to can opportunity for for what interesting attractive natural this it's able in provide our particularly project. difficult opportunities very And are a further that LNG doing plant. to that an analysis, global to country to timing markets. predict gas resources But for for to have, such we export

on Okay. I follow-up could gas just side. Thanks. If the

of [indiscernible] either to could how you a I short-term. know In be there terms and how don't add I with quickly is in and to have question if terms that very increase could auctions you do of you initial – to when, outputs my capacity much able to capacity of projects the are quickly are guess advantage that? but take pretty capacity move

how the why with quickly That Yes. that's depends to online. require come they they and depends – on be mentioned I the commitments when on auction

significant to winter, that soon probably say need very next probably want a increase some If we right. we take new in facilities four cubic Let's few if establishing meters the place, to to put some would day, in million for to day winter million about of three, our processing to for talk meters two, if amounts. need the in those a new quickly let's gas total total to decision as we a production, cubic of capacity we'll need put natural move say we will have make to probably facilities extra a add for XXXX, volume, a we production

ability to like it. we to the the come We So that. auction it. very do to to the ability be able deliver have market actually see still to on have to to soon do We

very you Okay. much. Thank

Sure.

Marcelo Our come will Please from next with Gumiero Credit go question Suisse. ahead.

questions and my well. questions results. on very have much. for thank morning, Alejandro, congratulations Thank as Sergio, I Pablo, you you two Good the taking

so year- question I expected question forward, good on bit from push right to, how CapEx little guidance CapEx mainly for the it should I [indiscernible] up much, if quarter, the meet to second just be execution, prices on very seemed as maybe increase the quarterly plan were I were able need CapEx that the the my the recently the is ramp is and year, side. how to My mean, just year, to $X.X to the mean, provided mentioned CapEx a and bit quarter then going for to do up say those billion. the week, the activity initially you first wonder, what government going adjustments. a and to I mean, then let's from segment, you of one mean, already the mean, negotiating how first pretty you CapEx mean, are If I or, expectations that the you for is see below, should the last CapEx we prices would should during close expect were are much you distance on expecting. retail prices how were, production provided the right I mean, little prices, year. to Thanks. the now. as able local able first implement – you The adjust for adjustment, see another below international you That I actually I And now, the with we import and

highlight Thank we for way the fuels respect already commented as and to for the context, In fuel comments relevant that of some wholesale presentation, adjusted driven XX% it's diesel Marcelo, fuel domestic in the we to to our through retail questions. so continued well dollar our pricing revenues. XX% partially a have the way, in segments, quarter. segments our wholesale least far non-linear parity prices. about prices QX to sales With X% sense, retail as about import considering the clients local a client also to your versus managed let reference average prices policy to our total mention passing currency different in represented were prices. spread while QX, for me by about you, that the represent sales of terms And beyond pump first our one, clients a evolution to wholesale your as other translate adjusting international previous of we jet this to pump prices and the of while costs during macroeconomic in at average for full total managed environment that In sales to reduce, measures the increase revenues tons with retail in have

international heightened However, average prices about recently the adjusted prices, average given the to even managing to prices the once QX spreads, quarter. XX% More reduce for we international discount in volatility of international to and standing rallying prices continuous on around cracker more and currently the the Brent during the reference parity prices to again, gap back XX%. rallying dollar the the above pronounced XX% slightly

local the Going forward, to relative to macroeconomic their distortion maintained fuel costs considering afford the equilibrium we pursue second you're to going that in aiming take will the at context. our so domestic and ability sector Alejandro, clients dedicated avoiding, and the prices. been strategy impact of we enlarging, will within our continue this address our pricing reference decisions has one. to the our international And on far

second I'm take question CapEx. Yes. to about Hi, your going Marcelo.

multiply targeted billion. $X.X little the for had that As bit of you by be and anticipated, we will mentioned, slower the first quarter below the year CapEx you a just – and consider also when four than was the we

also a we of had as issues the mentioned, then we mostly [indiscernible] of However, new our factors. some resulted factors, weather-related was affected from was which at in that beginning operations. variant there some where upstream January, where And delays Omicron of operations. couple February year the upstream Argentina, during in a in external mostly, some our One COVID-related

So in well that basically slower some in drilling both activity, resulted and completion.

our below in a As though were also we logistic the acquiring quarter, facilities good we in some installations we issues. result our mentioned, wells number in same works. in the CapEx issues of we completed, had the And the target. or in even completed a some expectations our presentation some we mostly with that facilities weather-related but delayed of related some Again, materials, happened to facility had start and

also the on have we have plan in full to potential that continue Activity – and already beyond has up our beyond of mostly some further not momentum little to CapEx with lost might for billion picked quarter. as the upstream target only catch we that, activity. do opportunities the see that And increase we up some to further but we bit see we However, a our the year, also we lot $X.X regained to expect accelerate, a to already. ground first operations

Probably by So we further at have that not that quarter, will possibility. we But this yet. information. is see next fully decided point, the

our there some So to total say bias potential upside I year. plan is the that would CapEx for

Thanks clear. All right. guys. Very

Konstantinos come Papalios question Our will go with Plenti. ahead. next from Please,

congratulations give morning you you and results. the status on? Thank from case. your very on update the now is us on the on Good related date to estimate much. question an for and an My you Could perhaps imported Maxus today

Sure. your Konstantinos, comments. thank you Hi, and for

As terms expected XX-F. as the completed And summary issues, on and one X, and of year back fact the financial April and based recent by discovery the that a June the ongoing judgment is recent relevant be oral our know, is of at now, know, of of then this began But basically, you But to in our you to June year. expert of by ended on well information we process, the the have last occur the in is arguments discovery which several by as go in statements XX. as we that with expected are instance decades. this have legal process, already just and briefing contingency is concluded probably in of most October important where judgment primarily terms of recent issues we also in summary

been no set is trial there that Beyond yet. has that date

and definitely – continue law applicable will the on reassess is way, defend to ourselves lawsuit to parties both and results. may say summarize status and our complexity our And that would the to are us. and to litigation the all as to of this that So defense its the The given of with this available evidence will our definitely accordance continue progresses defined. all presenting view, that in And in claims to continue the, be also I present. still we just and is impact company all

you. Thank

the your internal expansions processing you the of third XX% about easing these needs prices? need rely Oldelval parties see still very from to imported you without you question, following and a Thank crude fuels. Just raise much. Do

continue see, went question got I from to quarter group third do a about to correctly. and me from process less this It in XX% quarter. parties. this little XX% if We the bit down Let

grow, on year, trying As some commented And Argentina. expecting adjustments way, of prices to crude to likely the go along local local as that our continue terms proportion day, of the expecting. end communication we continues pass pump in operations there the prices. that pump next and is self-sufficient production the somehow the price margins healthy presentation, relatively in And the have to to stable we ability to to within reflection to in a crude maintain we price to is the and of if be things of the end way local over are be clearly, and the by at do downstream most reduced expect time, in continue

speaking because of the generally that's guess part so not question, view. I'm answered think it. I I most your of I but missed I sure And

our question And take go from next Please Marina Mertens we with will Partners. ahead. AR

you. three Good Thank you for questions. taking Hi. I have my questions. morning. Thank

increase $XX still been this barrel. of have First, crude to but able you oil three prices times remain year, the per pump prices below

pipelines – And gas the see production limit short-term question an producers? you And any with transportation debt increase following already this So in what the local should where we that in second, maturities increasing that years. are And about at to in can my pricing as the capacity? are the last oil paid is could do full there bottlenecks prices we dynamics? crude expect from

to year's bond, XXXX have next corresponding the – the already amortization for significant still the schedule three this canceled the So challenging. but most looks you years

So what is the maturities? strategy cover Thank these you. to

Hi, your questions. Marina. thank for Good morning, and you

order. in go Let's

manage rallying In clients this at be context. with way in international and terms local the mentioned, We prices, try of ability energy a generally prices prices environment mention, one, refiners, in manage challenging. a and I just the negotiated is producers crude same we the very fuel of and international do do spread to crude prices prices to our of as pump as but afford privately the time, within to among we we the consistent acknowledge local first local to macroeconomic prices the and way which

price adjusting local local when higher of XX prices on prices, crude. major ahead all of Medanito evolution yes, prices for that process pump. dollar we domestically, that, are price were sold in we the sense, quarter. And our we which of with in are negotiations the having improve our also in that local manage as average is below we average, to mentioned, segments, those manage that on fuel crude the That's crude moving answer wholesale first talking the of And include marginally prices adjustments dollar average So in improve the specific for have you some about is as providers our the the refineries. we to also we when terms in as

average the by be ability on negotiation of depends a and quarter in would level prices. that's this terms prices a to than somewhere that dollar the But for again, crude higher we end of reasonable maintaining about So expect probably to the XX% in of last continue quarter. constant

oil not In [indiscernible] year. the have also significant out our production this last that Vaca of only very in producers, Muerta terms call of the but continues given bottlenecks, year, mentioned from previous increase which other earlier we in

total place through increased been As were presentation, to about put that alleviated capacity We capacity, we recently, has getting initial and by expansion mentioned had were evacuation maxing Oldelval our evacuation that we in in some close very facing out bottlenecks. this which XX%.

bottlenecks mentioned out to evacuation ourselves increasing the further alleviate expect production for pipeline, actually in or that move coming And both given clearly projects basically restrictions as that given we year, not maturities. rest months of Oldelval any XX the happen at of other of right total low in next less Also, of well terms when in remaining maturity. in enough look that And as presentation XX a we the very time, small we very the maturities. total than $XXX not oil liquidity the a million have for in all to we this the we have a – maturities, next in time debt is months almost very and to cover bottlenecks further total projects the So to along will are first have Vaca finally and months, in expecting we at debt the we we are Muerta. long

you in early $X the in the months. total next are that So debt basically, maturities above come when in XXXX XXXX, just we due maturity XX billion include all and

look XXXX. are YPF do at profile, with challenging, don't – particularly any maturities work to of as in and consideration a as with exposure minimum seeing seeing, not we not at that we to we we when markets. having $X it So have we activity And challenges average are take to to very our taking face it billion normalized we expect need at and seriously, with that, but major it's course, on around need banks into of local relationship that level total our the are of we

our at to do proactive in avoid along coming And if take facing roll higher sources tap to working maturities continue to them those to care So capacity shorter on we we a tackle up Then will months to needs way XXXX needing have have for maturities aiming move or work on a definitely our we maturities years. in to of and schedule. on do ample as over. end early we we

you. Thank

go from Chiarvesio comes Walter Santander. question next Our Please ahead. with

the morning, Good Hello. questions. have I congratulations and on results. Yes. two

one and is pressures related The cost margins. to first

unions import are cost [indiscernible] of And impacting for would this how inflation like it's Argentina costs structure fuels, the company? the are probably impacting is inflation dollar of to and or for with negotiation how example, that, also Related company. sector of you cost the seeing industry. you, I to We in hear U.S. the agricultural the from margins seeing if

that this very XXXX investment, on requirement, to capacity So typically much. possibility the scheduled capital from And guys. or Oldelval, et side. get of any provide you That's If schedule information cetera. shareholder that kind is there the Thank from some my is biggest double regarding one, the not question. second [indiscernible] margin is to but options YPF first there more to the could of you question, my if being the

thanks and questions. morning, good and for your Walter, Hi,

In not our but pressure would terms effect well, of Clearly, mostly earnings working cost we local, as continuously in from as be are macroeconomic efficiencies, operating also only that we do side. margins, contract to mentioned we call efficiencies, pressures, last answer our in of international. expect the inflationary and further

as also of salary material affects bit like. back wage As you context than metals little you the inflation of our on and devaluation know, negotiations margin. our of our costs, slower primarily currency also the are And the that affecting cost commodity increases, on mentioned, prices a the the total and in running

quarter, However, to as price in manage we managed first contain we did the pressures.

be to down We road. are not expecting sufficient continue to in those the managing as

So we are cost basis. likely to see some our pressure in

coming suffer our not a major though, further However, I months. we even margins in cost way, in will see inflation said, continue as and expect we do to margins expect we healthy to

And see depending of margins imports, coming volume and will to our in fuels how quarter. also ability of decline short-term in But In by an And for we manage salary would terms we agreement earlier in a ended ongoing amount a of on short-term new on we continues XXXX, with And that the XXXX March. agreement imported inflation the to probably of terms revisit the total only be We union months. – negotiations, that a agreed on to basis. months. we coming on now and our have in agreed expectation we the basis then total in announced salary successfully the starting we started maintain that fuel April. nominally unions

in our on mentioned the the higher total we back result, earnings quarter, imports As were fourth inventory previous quarter partially of in previous buildup. some

fuel are still having mix. less have blend we So anymore. total – still we that effect But in our biofuels don't

requires higher average So in total than that imports. historical some also of terms

in that XX% came primarily previous is higher we the levels though reasons, quarter, we quarter, robust the average of we it importing the have quarter that part about above has had demand but facing than the even declined XXXX. it that sold, still XX% that the ended seasonal that again, in the historically. previous all-in-all, pre-pandemic fuels declined of of as But from first X% we we significant in are from that of the that of still So

higher with the of demand biofuels higher time higher but same lower that the some in facing levels, are volumes also at mix. processing the we So because requiring input

average particularly you that compensating So compare some wholesale of some can when losses the all-in-all, segments, market, domestic adjusting by also resale have at been prices prices there, marginal and to see we fuel you and jet it look our sales. in but the the on

it, imported commented. would have mitigating I on unfortunately those Oldelval, that to from say have costs we extent finally to have much say we don't already more I and And large all-in-all, fuels. incremental So

that is team expansions of that but midstream the XXXX XXXX, with Our we as expect come we expect end online, there provide. a together the to in system, on continue Oldelval no future much portion the capacity incremental – which are now, working we of and can of of by do the further information to reminder

Okay.

the and year saw to… of lower, that you we to see or could that we margins kind think rest maybe to conclude, quarter [indiscernible] can in have but I the of just better the just do the understand that year? over to So follow-up should that margins it just we first have the conclude for be

in better natural margins information right have we period, margins. tend at sales although expect margins a that – that so hard to to slightly on season that would now. significantly margins, But entering I be lower not would depends of all-in-all, terms variables say. expect we would the on look you higher also When to se, now expect we it would stable I the our many per based Yes. gas it also – are affect

much. very you Thank Perfect.

go next question ahead. Please come with will Citigroup. Our Cardona Andres from

a Good question. Sergio, Hi. have very Alejandro. I quick morning, just

have You a interesting very chart.

versus very such maybe or cash I And this maturities. it's [indiscernible] a it. cash You next And for months position and to be level? that's large results. liquidity still Thanks your the the quite optimize show sense big strong the if target could versus makes position, it In have a your wonder and in congratulations to what maturity. position XX

as than optimal Good yes, we we part has – morning, having is to do and Clearly, CapEx. liquidity pace actually our thank are today of you, expected Andres somewhat for of higher with of it our optimum. that slower than an as And congratulations. your see the position

a work would past, move to us. an for that. sort optimum make the to that the on would we in be we managing as expect level somehow $X to similar billion liquidity so then that we year, will And – along the efficient as CapEx expect be we that earlier, would In commented normalized, as to our use And – level, I to looking have mentioned also, the looking that at of the of plan and that meantime, we actively opportunities course, liquidity are accelerate well. of to liquidity

Amorim come next ahead. with Please our question go will Bruno And Goldman Sachs. from

two you Hi. Thank Thank Good much. questions. I have everybody. morning, very you.

it is the actual it case adjustment case. the that does this CapEx, between when – from generation, line, should got from But there should you not quarter, cash and a $X.X in FX us to for is which seem share flow of is more you market at exposed prior about between does looking cash adjustments around XXX we how to we of big once a mismatch seem deal. be currency question was billion adjusted above by much operations billion which the wanted the significantly somehow quarter. $X cost much. EBITDA per the be that effective your impact doesn't at of exchange to rate are the revenues, impact difference made there one, flow the first or so free flow cash level any And similar the very your your when be confirm the quarters. second was cash We the think be just around EBITDA your flow the you could operations, looking to to to this in The higher and saw numbers, possible your the exchange is official help Thank it a which rate reconcile

that's imports and for our exports bring to that at let Yes, that distortion exchange the morning. Basically the activities use debt the country is FX our by to just FX by all end into we rate. the there as the pay and no one operations servicing. that's Bruno. pursue we by our our we register me used everything Hi, basically generated saying and also for also pay official that different the of in rates financials and to Good our start

at of FX. the So the at end is official everything done the day,

what of them working In reconciliation some earnings receivables for credit our and when mentioned year. we gas some the large the, a were XXXX from conditions the – positive tax the along extent, of that during terms some this we were time, is to some that paid we probably mostly quarter, that year were It quarter. reconciliation, time asked last at necessarily with about higher of we recall to part with potentially capital that better related to and other that at do this to late mentioning that from changing are in them do generation capital seeing that's has which plan, the you suppliers not call, of we are as also expecting from of planned clients. between and had we in last collection very as expecting past also contributions. of that probably clearly monetizing than variations also is working XXXX, But some program the cash It our that an in and EBITDA also part in move of advance side. being some at flow operating it's materialized And year

that a when But working major in the year. again, the anticipated were the OpEx or we capital, providing largest positive for and with then working So explanation reclassification some and we every reclassification leasings quarter, because has capital. would to accounting and have. the from of the in – working of we do of materials And on have CapEx financial the capital issues as typically come that a quarter typically as between happen, contribution guidance lot also also –

clear. Thank much. you very Very

Our will UBS. Please with Carvalho ahead. next Luiz go from question come

I taking for the quick Thanks basically questions. morning. good here. Hi, have questions three

quarters. over to the understand if of The you level couple you second I year, delivered a as to lastly, and can versus accumulated were environment to Thank lay a even in the that potential losses first first board to I new of thinking we couple about understand this how my to $XXX just beginning that looking And you one to said that paying if you last out, year? the let’s expecting be, planned in domestic question, slightly of question should dynamic mean, is question [indiscernible] just due – positive mix are have and capital the right. how generation say you trying how tax in quarter, or after mean, regards amounts, reduce new with year, this And or cash we see just next presented about between The of the remainder retail. and extent you. this cash the production we of the say generation. I allocation a with the think trying quarter of potentially just understand, the regard capital to presented we you the the the let’s might to have to cash a you terms of generation increasing neutral you let's next, dividends price so further, investments In the the increases/Brent, above? over something certain allocation, impacted million, close slightly forward the say acceleration CapEx is in by trying

questions. Hi, Luiz. Good morning. your for Thanks

be we just the terms or But expecting as on larger expected slightly we And our be last clarify And first the call, the leverage before, exceed said, and generation are we the that. are the positive to that is holding during given we changing. In along the by CapEx even cash in That plan, to that year. position plan. we terms of we in not to a to me mentioned way catch in on our discussed or with optimum of ratio a Xx. be possibility work accelerating quarter, net generation by also given time neutral expect And CapEx considering we we the first side, we clearly slightly mentioned, – negative CapEx results if would from reducing flow our up are to negative cash do meant, of generation, of as said along the exceeding we moving neutral a do being commented that earnings if part And guidance let then establishing the year cash of now of flow in comp responsible our we during operations. and when year so for used And going plan at to the that we of we terms we year. maximum cash as the provided cash, are healthier that. than do were would financially as

to to the neutral pursue adjustments could on that we the given would we year, all-in-all, expect the along slightly So be positive.

exceed to that CapEx upstream opportunities then hydrocarbon Vaca particularly our capital or operations, maintain as all And our in flow – basically least be a net cash of mostly of potentially tremendous we So Muerta. would see than envision plan natural quarters. see resources, first expected I that coming to at in dedicated to then clearly generation going opportunities flow is and are not net terms generation, resources, say our higher not comply monetize the our particularly monetize the we that in we generation to we on huge where on anticipating these to expecting allocation, cash of level cash with,

of as dividends, I So bit it's in of capital to a say that would I allocation say be say. would started, CapEx. early I to will And the little focus terms too the that still

to we would the still formally dividends first Board it need distribute earnings have reverse sheet. potentially to the As of it more then, cumulative take have regulatory and mentioned, time in our first once the to you balance that all, negative then consider we our comes. To ability to

that we see, robust is have biofuels in above which in quarter, last the cut mostly processing also demand with relatively early. answer, maintain seen at say to But of above related runs you still our the to the given our give on mix. the So focus levels CapEx. go it's the which or that likely to with we a I the lower capacity imports, will this summarized would And too average, ambition the and still priority point finally

those, seen have we the roughly remain So expect given levels about would first to the that quarter. in we

Okay. Thank on you very congrats much. Very clear, the results. and

you. Thank

will Fernandez come Our question Balanz. ahead. Please from go with next Ezequiel

have thank Hi. questions. for Good four you on the morning, everybody, materials call. and the I

Sorry, but it's late should call, a quick. little bit they be in the

is at The It rate is XX% a of couple a annual for to first one outlook for quarters falling gas conventional related the production. now.

of later. replacing And in take decline? make strategy questions or conventional the unconventional financial other for you If will I'll a the does the sense volumes continue reducing with ones, at point invest it time to in

I do stabilizing morning, our we some that continue one-by-one. or well. mean would more effort by to natural that gas ways the to do look production. in at decline clearly putting in counterbalance in Well, doesn't we opportunities counteract are in see Okay. Ezequiel. that conventional Good we We go gas, to to oil but as so natural natural say

in natural natural been we continue records So oil. In on potentially, to those gas Manantiales been opportunities, to, production. clear progress in decline natural our identifying look really also gas, ways conventional we doing related not, far but are our production, And have Behr, on that new in continues but the at to which to at hit least is minimize we conventionals production. gas, yet particularly tertiary commenting, and we've as mostly good to very in

much second is in regarding looks Argentina medium least segment. revolves But might the My in term. question – the well in sector the investments Great. of at refining it in discussion around Okay. upstream the need like capacity expansions the

are looking the ones into expansions, So maybe you processing any capacity? of modular YPF

significant any terms some years come in but refined envisioning to are a we in few we years, potentially mobility not issues. products, decline in coming stabilization given see of rather growth and some Well,

Luján we that we what CapEx content in de capacity, terms we that we that already D of sorry, Cuyo, both that our envision process, years. refining de major crude can for fuels, And production what Plata is by coming Those processing which our by in blend the say but allow also, the at us CapEx Topping of expansion in would are the we not increase revamping basically beyond that would the refineries, any So I envisioning the XX%. is started our to total refining the our have adjusting or But are La of Plata the be of reducing refinery. capacity Luján at and La the Cuyo will plans processing of sulfur levels refineries. mostly related terms about to terms adjusting our only the fuels basically quality that are of

That's lately is been know can third discussed question pipeline. crude that? don't now that Rivadavia on related great. the if you Comodoro and about much My to reviving Argentina has comment I region, pipeline Chile interconnecting

Yes.

the and frontier. working are are we partner we on – immediate works side ENAP our of on on we understand is their We side performing our that clearly on their working that,

are good progress. We making

of the full that the day also enable a pipeline early very by potentially is next XX,XXX Transandean of about pipeline even expect And year pipeline of that late new kilometers once transportation of this put Chile. be we should will Transandean core a oil we available Transandean putting center pipeline that by to probably the We capacity barrels potential new Muerta, pipeline, portion late of Neuquén year, at available the the into out to total or year, a interconnect see center part the the a our out need XXX with are Neuquén that's we that hub and together. of the production of we take pipeline, OTA, in Northern place the to Vaca next

basically initiated, the have already We project.

over next already a next which the expect next year. second that by running half the second be and of potential barrels up the have probably the pipeline, a full acquired the the year. that a we and We XXX,XXX materials by pipe should pipes export of year, needed, bit half should through little day to Transandean of that by the be enable end And

That's reminder where are local of for And thinking tapping great news. final And so debt the how market much question, money? the for you if my about XXXX?

earlier, in at last I as we Well, beyond bond outstanding the the one standing of levels debt are longer dated we of local probably issued the market year. commented late more that lowest

So to the market, to presence local tap be investor maintain love to honest, the base. with we would our institutional

given what commented are at this as the until higher our dictating local However, with how that level. up on will our we unlikely we CapEx to issuance. and local sit months tap liquidity our before end the year. that market will that potentially the evolves our opportunities consider we the enter and and or to potential need new than point even of evolve capacity And end in depend running be markets how to But with optimum I coming liquidity a the

that's and That's you much, great. all from very Thank my side.

Sure. Thank you.

At over session. to will the this conclude remarks. for back I'd to like that Sergio closing call the time, And question-and-answer turn

Okay. And good Thank you. Thank reports. day. following a comments for for and your you have very much, interest, guys, for your YPF,

participation your you conference. will you this now disconnect. today's And and for conclude Thank may