YPF profits from fuel price hike despite decrease in sales

In the first quarter of 2024, the oil company YPF reported a net profit of approximately 657 million dollars, marking a 93% increase compared to the previous year. This improvement in its financial performance can be attributed to the rise in fuel prices for naphtha and diesel, although it was partially offset by a decrease in sales amidst a decline in economic activity in Argentina.

During the same period, the company’s adjusted profitability (EBITDA) reached 1,245 million dollars, reflecting a 19% increase year-on-year. Revenues grew by 2% to 4,310 million dollars, while investments fell by 4% to 1,252 million dollars. YPF, which has the State as its main shareholder, saw its results driven by a rise in fuel prices, a reduction in imports of finished products, and an improvement in the price of crude oil sold locally.

The devaluation of the local currency in December contributed to a 16% cost reduction in extraction to 12.9 dollars per barrel of oil equivalent. Despite a decrease in local fuel demand by 11% due to lower sales at service stations and seasonal consumption patterns, YPF managed to gain market share compared to its competitors. However, the company experienced a decline in consumption in the retail segment in April.

Oil production for YPF remained stable at 255,000 barrels equivalent per day, with shale oil production showing a significant growth of 21% year-on-year. Exports of Medanito crude oil to Chile also increased by 22% to 23,000 barrels per day. YPF executives will engage in a virtual conference with investors to discuss their strategic plan and address inquiries from international banks and investment funds.

The company’s stock market value currently stands at 11,784 million dollars, with its share price at 24.38 dollars. Over the past six months, the value has surged by 136% following the announcement of Javier Milei as the new president.