YPF YPF Sociedad Anonima

Table of Contents

 

 

FORM 6-K

 

 

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

Report of Foreign Issuer

Pursuant to Rule 13a-16 or 15d-16

of the Securities Exchange Act of 1934

For the month of November, 2015

Commission File Number: 001-12102

 

 

YPF Sociedad Anónima

(Exact name of registrant as specified in its charter)

 

 

Macacha Güemes 515

C1106BKK Buenos Aires, Argentina

(Address of principal executive office)

 

 

Indicate by check mark whether the registrant files or will file

annual reports under cover of Form 20-F or Form 40-F:

Form 20-F  x            Form 40-F  ¨

Indicate by check mark if the registrant is submitting the Form 6-K

in paper as permitted by Regulation S-T Rule 101(b)(1):

Yes  ¨            No   x

Indicate by check mark if the registrant is submitting the Form 6-K

in paper as permitted by Regulation S-T Rule 101(b)(7):

Yes  ¨            No   x

 

 

 

---

Table of Contents

YPF Sociedád Anonima

TABLE OF CONTENTS

 

ITEM

 

1		Translation of Consolidated Results Q3 2015.

---

Table of Contents

 

YPF S.A.

Consolidated Results

Q3 2015

---

Table of Contents

		Consolidated Results Q3 2015

 

 

CONTENT

 

1.		MAIN MILESTONES AND ECONOMIC MAGNITUDES FOR Q3 2015			1
2.		ANALYSIS OF RESULTS FOR Q3 2015			2
3.		ANALYSIS OF OPERATING RESULTS BY BUSINESS UNIT FOR Q3 2015			4
		3.1 UPSTREAM			4
		3.2 DOWNSTREAM			6
		3.3 CORPORATE			7
		3.4 RELATED COMPANIES			7
4.		LIQUIDITY AND SOURCES OF CAPITAL			8
5.		TABLES AND NOTES			9
		5.1 CONSOLIDATED STATEMENT OF INCOME			10
		5.2 CONSOLIDATED BALANCE SHEET			11
		5.3 CONSOLIDATED STATEMENT OF CASH FLOW			12
		5.4 CONSOLIDATED BUSINESS SEGMENT INFORMATION			13
		5.5 MAIN DOLLAR DENOMINATED FINANCIAL MAGNITUDES			14
		5.6 MAIN PHYSICAL MAGNITUDES			15
Investor Relations					16

 

2

---

Table of Contents

		Consolidated Results Q3 2015

 

 

Adj. EBITDA for Q3 2015 reached Ps 13.4 billion, 1.8% less than Q3 2014.

 

Q3 2014				Q2 2015				Q3 2015				Var.% Q3 15/ Q3 14						Jan-Sep 2014				Jan-Sep 2015				Var.% 2015 / 2014
	38,209				39,557				40,931				7.1	%		Revenues (Million Ps)			104,203				115,190				10.5	%
	8,044				5,578				5,631				-30.0	%		Operating income (Million Ps)			18,378				15,678				-14.7	%
	3,212				2,297				1,850				-42.4	%		Net income (*) (Million Ps)			7,619				6,274				-17.7	%
	13,603				12,395				13,363				-1.8	%		Adj. EBITDA (Million Ps)			32,975				35,967				9.1	%
	8.19				5.86				4.72				-42.3	%		Earnings per share (*) (Ps per Share)			19.43				16.00				-17.6	%
	13,787				14,758				15,730				14.1	%		Capital Expenditures (**) (Million Ps)			40,912				42,839				4.7	%

Adj.EBITDA = Net income attributable to shareholders + Net income (loss) for non-controlling interest - Deferred income tax - Income tax - Financial income (losses) gains on liabilities - Financial income gains (losses) on assets - Income on investments in companies + Depreciation of fixed assets + Amortization of intangible assets (*) Attributable to controlling shareholder (**) Capital expenditures for Jan-Sep 2014 include additions relating to the acquisitions of Apache Group assets in Argentina (net of Pluspetrol assignment) and an additional 38.45% stake in Puesto Hernández joint venture.

(Amounts are expressed in billions of Argentine pesos, except where indicated)

 

1.	MAIN MILESTONES AND ECONOMIC MAGNITUDES FOR Q3 2015

 

•

Revenues for Q3 2015 were Ps 40.9 billion, 7.1% higher than Q3 2014.

 

•

Operating income for Q3 2015 was Ps 5.6 billion, 30.0% lower than Q3 2014.

 

•

Adjusted EDITDA for Q3 2015 was Ps 13.4 billion, 1.8% less than Q3 2014.

 

•

Net income for Q3 2015 was Ps 1.9 billion, 42.4% less than the Ps 3.2 billion in Q3 2014.

 

•

During Q3 2015, total hydrocarbon production remained at approximately the same level compared to Q3 2014, reaching 571.9 Kboed. Natural gas production was 44.4 Mm3d, 1.4% less than Q3 2014, while crude oil production increased by 1.3% to 249.3 Kbbld.

 

•

In the Downstream segment, processing levels in refineries reached 93% in Q3 2015, 0.6% less than Q3 2014.

 

•

Capital expenditures for Q3 2015 were Ps 15.7 billion, a 14.1% increase compared Ps 13.8 billion in Q3 2014.

 

---

Table of Contents

		Consolidated Results Q3 2015

 

 

2.	ANALYSIS OF RESULTS FOR Q3 2015

Revenues for Q3 2015 were Ps 40.9 billion, 7.1% higher than Q3 2014. Among the main reasons for this variation in the company’s revenues are:

 

i.

Gasoline sales increased by Ps 1.0 billion due to a 10.0% increase in the average price obtained and an overall 4.3% increase in sales volumes, notably including a 33.7% increase in sales volumes of Infinia gasoline.

 

ii.

Diesel sales fell Ps 0.2 billion due to a 5.5% decrease in sales volumes, which was partially offset by an 8.8% increase in the average prices obtained. The lower sales volumes were driven by adverse weather events during the period that disrupted the agricultural and transportation sectors. Nonetheless, sales volumes of Eurodiesel, which is a premium diesel product, increased 24.3%.

 

iii.

Local sales of fuel oil increased Ps 0.7 billion as a result of an increase in average prices obtained, and a 47.0% increase in sales volumes.

 

iv.

Natural gas sales in the domestic market increased by Ps 0.6 billion due to an approximately 12.1% increase the average price obtained in pesos on flat sales volumes, principally as a result of applying excess production to the Natural Gas Additional Injection Stimulus Program.

 

v.

For petrochemical products sales, revenues in the domestic market decreased Ps 0.2 billion due to lower prices in Argentine peso terms, mainly stemming from the drop in the price of products tied to the Brent oil price as well as an 11.0% decrease in sales volumes.

 

vi.

Exports decreased 17.2% (a decrease of Ps 0.6 billion) mainly due to the fall in international prices, however exports of flour, grains and oils increased 9.5%, totaling Ps 1.0 billion.

 

vii.

Ps. 0.5 billion was earned from the Crude oil Stimulus Production Program pursuant to Resolution 12/2015.

Costs of sales for Q3 2015 were Ps 30.7 billion, 16.3% higher than Q3 2014. Among the main reasons for this variation are:

 

a)	Purchases:

 

•

A net increase in crude oil purchases from third parties of approximately Ps 0.6 billion, due to a 22.0% increase in volumes purchased and a 2.5% increase in the purchase price in Argentine peso terms;

 

•

An increase in diesel and jet fuel imports of Ps 0.2 billion due to greater volumes imported, which was partially offset by lower prices;

 

•

Accrual of a Ps 0.5 billion insurance payout in Q3 2014 related to incident at the La Plata refinery in April 2013, which was applied primarily as a reduction to costs of purchases; and

 

•

Accrual of a Ps 0.6 billion insurance payout related to the incident that impacted our facilities at the Cerro Divisadero crude oil treatment plant in March 2014. Of this amount, Ps 0.4 billion were applied as a reduction to costs of purchases.

 

2

---

Table of Contents

		Consolidated Results Q3 2015

 

 

b)	Other production costs:

 

•

Increases in depreciation of fixed assets of Ps 1.5 billion due to increased investments in assets, particularly with respect to development of unconventional resources, and due additionally to increases in Argentine peso terms, given the functional currency of the company;

 

•

Increases in items relating to lifting costs of approximately Ps 0.9 billion, considering a 14.0% increase in the unit indicator in Argentine peso terms;

 

•

Increases in refinancing costs of approximately Ps 0.3 billion, due primarily to a 25.6% increase in the unit indicator in Argentine peso terms;

 

•

Higher royalty payments of Ps 206 million. Of this net increase, Ps 141 million are related to higher royalties for crude oil production and Ps 65 million are related to natural gas production; and

 

•

Increases of approximately Ps 0.2 billion in environmental remediation provisions.

Selling expenses for Q3 2015 were Ps 2.6 billion, a decrease of Ps 0.2 billion (or 6.5%) compared to Q3 2014. The increases in transport expenses for products, primarily due to higher rates paid for domestic transport of combustibles, were completely offset by lower withholdings on exports. The lower withholdings occurred as a result of the fall of international prices for the products exported and reversals of provisions for doubtful accounts related to renegotiating certain agreements with natural gas distribution companies to regularize their debt.

Administration expenses for Q3 2015 were Ps 1.3 billion, an increase of Ps 0.2 billion (or 16.3%) compared to Q3 2014. The increase was principally due to higher personnel expenses and higher technological service costs.

Exploratory expenses were Ps 1.2 billion, an increase of 286.3% compared to Q3 2014. This change was due to greater expenses from unproductive exploratory drillings during Q3 2015 compared to Q3 2014 of Ps. 0.6 billion. This was due to greater exploratory activity carried out in Q3 2015, in which exploration investments increased by 30.0% compared to Q3 2014. Additionally, a Ps 0.2 billion increase in geological and geophysical studies related primarily to seismic mapping in the Chachahuen area in the province of Mendoza contributed to the increase in expenses.

Our subsidiary, Metrogas S.A., accrued Ps. 0.2 billion corresponding to temporary economic assistance provided by Resolution No. 263/2015 by the Argentine Secretary of Energy. It recorded operating profits of Ps. 249 million and Ps. 73 million for Q3 2015 and Q3 2014, respectively.

The financial results for Q3 2015 were a loss of Ps 0.7 billion compared to a loss of Ps 53 million for Q3 2014. This occurred as a consequence of increased interest accrual related to greater financial debt.

Income tax for Q3 2015 was Ps 3.1 billion, compared to Ps 4.8 billion in Q3 2014. This difference arose principally from a lower profit before tax (a decrease of 38.1%) for the reasons discussed above.

Net income for Q3 2015 was Ps 1.9 billion, 42.4% lower than Q3 2014.

Total investment in fixed assets for Q3 2015 was Ps 15.7 billion, 14.1% higher than investments in fixed assets for Q3 2014.

 

3

---

Table of Contents

		Consolidated Results Q3 2015

 

 

3.	ANALYSIS OF OPERATING RESULTS BY BUSINESS UNIT FOR Q3 2015

3.1 UPSTREAM

 

Q3 2014				Q2 2015				Q3 2015				Var.% Q3 15/ Q3 14						Jan-Sep 2014				Jan-Sep 2015				Var.% 2015 / 2014
	4,463				2,534				2,171				-51.4	%		Operating income (Million Ps)			10,781				6,965				-35.4	%
	19,357				19,557				20,491				5.9	%		Revenues (Million Ps)			50,961				58,623				15.0	%
	246.0				249.8				249.3				1.3	%		Crude oil production (Kbbld)			242.9				248.8				2.4	%
	43.2				38.7				43.7				1.1	%		NGL production (Kbbld)			45.5				47.6				4.5	%
	45.0				44.6				44.4				-1.4	%		Gas production (Mm3d)			42.0				44.3				5.5	%
	572.0				569.3				571.9				0.0	%		Total production (Kboed)			552.5				574.9				4.1	%
	306				387				1,182				286.3	%		Exploration costs (Million Ps)			1,230				1,760				43.1	%
	11,131				12,409				12,292				10.4	%		Capital Expenditures (*) (Million Ps)			34,943				35,402				1.3	%
	4,618				5,633				6,023				30.4	%		Depreciation (Million Ps)			11,664				16,444				41.0	%
																Realization Prices
	76.1				69.1				68.9				-9.6	%		Crude oil prices in domestic market Period average (USD/bbl)			72.7				68.9				-5.3	%
	4.28				4.58				4.56				6.5	%		Average gas price (USD/Mmbtu)			4.24				4.58				8.0	%

 

(*)	Capital expenditures for Jan-Sep 2014 include additions relating to the acquisitions of Apache Group assets in Argentina (net of Pluspetrol assignment) and an additional 38.45% stake in Puesto Hernández joint venture.

Upstream operating income was Ps 2.2 billion, 51.4% lower compared to Q3 2014.

During Q3 2015, crude oil and natural gas revenues increased by 5.9% compared to Q3 2014. This increase was driven mainly by higher average sales prices in pesos of both products, which offset the approximately 6.0% and 28.6% decreases in the volume of crude oil transferred to the Downstream business segment and sold to third parties, respectively. Sales volumes of natural gas were flat compared to Q3 2014

During Q3 2015, Ps. 0.5 billion was earned from the Crude Oil Stimulus Production Program discussed above.

With respect to the incident impacting our facilities at the Cerro Divisadero crude oil treatment plant in March 2014, a Ps 0.6 billion insurance payout was received, of which Ps 0.4 billion was applied as ordinary income in this line of business and Ps 0.2 billion as other operational results.

The average price in U.S. dollar terms for crude oil in the domestic market for Q3 2015 decreased by 9.6% to USD $68.90/bbl. As for natural gas, the average price was USD $4.56/Mmbtu, 6.5% higher than Q3 2014. For both products, the average sales price for YSUR crude oil and natural gas, USD $75.80/bbl and USD $3.40/Mmbtu respectively, was consolidated in Q3 2015.

During Q3 2015, total hydrocarbon production was 571.9 Kboed, maintaining a similar level as Q3 2014; crude oil production was 249.3 Kbbld (an increase of 1.3%); natural gas production was 44.4 Mm3d (a decrease of 1.4%) and NGL production was 43.6 Kbbld (an increase of 1.1%). In Q3 2015, in comparison with Q3 2014, production of gas was principally affected by the assignment of certain

 

4

---

Table of Contents

		Consolidated Results Q3 2015

 

 

areas in the Neuquén basin to Gas y Petróleo del Neuquén in December 2014, and to a lesser extent by certain technical contingencies in non-operated areas in Magallanes and Neuquén. Additionally, the delay in the initiation of development at certain sites prevented an offset of some of the natural decline.

During Q3 2015, production from unconventional areas totaled 46.2 Kboed of hydrocarbons, including 21.3 Kbbld of crude oil, 11.5 Kbbld of NGL and 2.1 Mm3d of natural gas, of which YPF consolidates approximately 50%. As for development activity, 34 oil wells have been put into production (33 in Loma Campana and one in Bandurrias) and nine for natural gas (eight in El Orejano and one in La Ribera Sur), targeting Vaca Muerta, reaching a total of approximately 388 wells to date.

With respect to tight gas activity: (i) in the project to develop the Las Lajas formation, five wells were put into production in Q3 2015 and the average production of natural gas was 4.4 Mm3d and (ii) in the project to develop the Mulichinco formation in the Rincón del Mangrullo area 12 wells were developed and natural gas production net to YPF was 1.0 Mm3d.

Production costs for Q3 2015 increased by 17.5% (an increase of Ps 2.6 billion), mainly due to (i) higher amortization of Ps 1.4 billion resulting from higher investment and higher valuation of assets in Argentine peso terms, (ii) an increase in items relating to lifting costs of approximately Ps 0.9 billion due to increased activity and the increase in the unit indicator, and (iii) higher royalties of Ps 206 million. Of this net increase, Ps 141 million were related to higher royalties for crude oil production and Ps 65 million were related to natural gas production.

Exploration costs in Q3 2015 totaled Ps 1.2 billion, an increase of 286.3% compared to Q3 2014. This change was due to increased negative results from unproductive exploratory drilling in Q3 2015 in comparison to the same period in 2014, for a difference of Ps 0.6 billion. Additionally, the total investment in exploration in Q3 2015 was 30% greater than in Q3 2014. Additionally, geological and geophysical studies increased Ps 0.2 billion, which were related primarily to seismic mapping in the Chachahuen area in the province of Mendoza.

During Q3 2015 compared to Q3 2014, unit cash costs in U.S. dollars increased by 0.9% from USD $24.00/Boe in Q3 2014 to USD $24.20/Boe in Q3 2015 (including taxes of USD $7.30/Boe and USD $6.70/Boe respectively). In turn, the average lifting cost for YPF was USD $14.70/Boe, 1.8% higher than USD $14.40/Boe in Q3 2014.

CAPEX

Capital expenditures in the Upstream business segment were Ps 12.3 billion in Q3 2015, 10.4% higher than the capital expenditures of Ps 11.1 billion in Q3 2014.

In the Neuquina basin, capital expenditures during Q3 2015 was focused on the development of blocks Loma Campana, Aguada Toledo - Sierra Barrosa (Lajas), Rincón del Mangrullo, El Orejano, and initiation of activity in La Amarga Chica, Cañadón Amarillo and Chachahuen. Development activities continued at Cuyana basin, mainly in the La Ventana and Vizcacheras blocks, while in the Golfo San Jorge basin greater activity was concentrated on Cañadón de la Escondida and Cañadón León-Meseta Espinosa, within Santa Cruz Province and Manantiales Behr and El Trébol-Escalante in the province of Chubut.

As for exploration activities during Q3 2015, the Neuquina, San Jorge and Cuyana basins were covered. In the Cuyana basin, the activity focused on the assessment of the La Ventana block and the Los Tordillos Oeste block, and drilling in the Barranca block. In Neuquina basin exploratory activity targeted both conventional and unconventional objectives. Activity targeting conventional formations focused on the blocks, Payún Oeste, Octogono, Los Caldenes and Las Tacanas. Activity targeting unconventional formations focused on the Bajada de Añelo, Bandurria, Cerro Arena, Pampa las Yeguas I, Narambuena, Las Tacanas, Salinas del Huitrin and Rincon del Mangrullo blocks. In Golfo San Jorge basin, the activity focused on the evaluation of deep targets at the west flank of the Los Perales and Cañadón de la Escondida–Las Heras blocks.

During Q3 2015, eight exploratory wells were completed.

 

5

---

Table of Contents

		Consolidated Results Q3 2015

 

 

3.2 DOWNSTREAM

 

Q3 2014				Q2 2015				Q3 2015				Var.% Q3 15/ Q3 14						Jan-Sep 2014				Jan-Sep 2015				Var.% 2015 / 2014
	3,864				3,865				3,522				-8.9	%		Operating income (Million Ps)			9,238				8,881				-3.9	%
	35,746				35,275				36,679				2.6	%		Revenues (Million Ps)			98,396				103,832				5.5	%
	4,327				4,399				4,308				-0.4	%		Sales of refined products in domestic market (Km3)			12,444				12,816				3.0	%
	284				316				314				10.6	%		Exportation of refined products (Km3)			1,113				1,078				-3.1	%
	232				225				218				-6.0	%		Sales of petrochemical products in domestic market (*) (Ktn)			633				622				-1.7	%
	88				86				87				-1.1	%		Exportation of petrochemical products (Ktn)			200				242				21.0	%
	299				305				297				-0.6	%		Crude oil processed (Kboed)			289				300				4.1	%
	93	%			95	%			93	%			-0.6	%		Refinery utilization (%)			90	%			94	%			4.0	%
	2,312				2,008				2,813				21.7	%		Capital Expenditures (Million Ps)			5,144				6,257				21.6	%
	634				778				778				22.7	%		Depreciation (Million Ps)			1,770				2,249				27.1	%
	789				756				764				-3.1	%		Average domestic market gasoline price (**) (USD/m3)			755				756				0.1	%
	824				760				774				-6.1	%		Average domestic market diesel price (**) (USD/m3)			794				763				-3.9	%

 

(*)	Fertilizer sales not included

(**)	Price net of deductions and commissions before tax

Operating income in YPF’s Downstream business segment in Q3 2015 was Ps 3.5 billion, an 8.9% decrease compared to Ps 3.9 billion during Q3 2014.

Revenues increased by 2.6% compared to Q3 2014, largely due to:

 

i.

Increases in gasoline sales of Ps 1.0 billion, due to a 10.0% increase in the average price obtained and an overall 4.3% increase in sales volumes, notably including a 33.7% increase in sales volumes of Infinia gasoline;

 

ii.

Declines in diesel sales of Ps 0.2 billion due to a 5.5% decrease in sales volumes, which was partially offset by an 8.8% increase in the average prices obtained. The lower sales volumes were driven by adverse weather events during the period that disrupted the agricultural and transportation sectors. Nonetheless, sales volumes of Eurodiesel, which is a premium diesel product, increased 24.3%;

 

iii.

Increases in fuel oil sales of Ps 0.5 billion, which includes both the domestic and international markets, due to a 33.6% increase in sales volumes and higher sales prices;

 

iv.

Decreases in revenues in the domestic market for petrochemical products of Ps 0.2 billion due to lower prices in Argentine peso terms, mainly stemming from the drop in the price of products tied to the Brent oil price as well as an 11.0% decrease in sales volumes; and

 

v.

Decreases in exports of LPG and jet fuel revenues of Ps 0.3 billion due to decreases in international prices. However, exports of flour, grains and oils increased 9.5%, totaling Ps 1.0 billion.

 

6

---

Table of Contents

		Consolidated Results Q3 2015

 

 

In Q3 2015, costs increased by 4.0% (an increase of Ps 1.3 billion) compared to Q3 2014.

 

i.

Similar costs to purchase crude oil, with a net decrease of Ps 72 million. Higher purchases of crude oil from third parties were completely offset by lower volumes transferred from the Upstream line of business. Prices paid to third parties and the Upstream line of business increased 2.5% and 1.4%, respectively;

 

ii.

Greater imports of diesel and jet fuel of Ps 0.2 billion, with greater volumes imported but at lower prices;

 

iii.

Greater depreciation of fixed assets of approximately Ps 0.1 billion and

 

iv.

in relation to production costs, during Q3 2015 refining costs increased Ps 0.3 billion, which is primarily due to increases in expenses and salaries. Consequently, and considering the processing level at our refineries decreased slightly, refining costs increased in Q3 2015 by approximately 25.6% compared to Q3 2014.

In respect of the damage affecting the La Plata refinery in April 2013, insurance compensation of approximately Ps 0.5 billion was received in Q3 2014, which was primarily recorded as a reduction to cost of purchases.

The volume of crude oil processed in Q3 2015 was of 297 Kbbld, 0.6% less than Q3 2014, due mainly to the scheduled halt of activities at the catalytic cracking unit in our La Plata refinery, which resulted in an 8.6% decrease in diesel production, a 7.5% increase in gasoline production and a 24.8% increase in fuel oil production.

The decrease in operating income explained above includes an indirect stake in the company Metrogas, which reported operating profits of Ps 249 million and Ps 73 million for Q3 2015 and Q3 2014, respectively, and which in Q3 2015 accrued Ps. 0.2 billion corresponding to temporary economic assistance provided by Resolution No. 263/2015 by the Argentine Secretary of Energy.

CAPEX

Capital expenditure in YPF’s Downstream business segment for Q3 2015 reached Ps 2.8 billion, a 21.7% increase compared to Q3 2014. Investment activities continue such as the multi-year projects and the engineering process in new units to increase gasoline and diesel production capacity, as well as to improve the quality of such products. Notably, a coke unit and advances in engineering work for a new alkylation unit at the La Plata Refinery as well as the new gasoline hydrogenation units in La Plata and Mendoza together with other activities were intended to improve YPF’s logistics facilities and projects addressing optimization of safety and environmental performance.

3.3 CORPORATE

This business segment involves mainly corporate costs and other activities that are not reported in any of the previously-mentioned business segments.

Corporate operating income for Q3 2015 was a loss of Ps 0.4 billion, an 11.5% increase compared to a loss of Ps 0.5 billion for Q3 2014. The increases in personnel expenses, among other corporate expenses, were fully offset by the higher revenues at A-Evangelista.

In turn, consolidation adjustments relating to eliminating results among business segments not transferred to third parties were Ps 0.4 billion for Q3 2015 and Ps 0.2 billion for Q3 2014.

3.4 RELATED COMPANIES

Results from related companies for Q3 2015 were of Ps 36 million, compared to Ps 38 million reported for Q3 2014. This change was mainly due to lower revenues in Refinor and operational losses at Profertil, which were almost fully offset by greater operating profits at Mega.

 

7

---

Table of Contents

		Consolidated Results Q3 2015

 

 

4.	LIQUIDITY AND SOURCES OF CAPITAL

For Q3 2015, cash flow generation was Ps 9.8 billion, a 46.4% decrease compared to Q3 2014. This Ps 8.5 billion decrease was generated due to a slight decrease in adjusted EBITDA of Ps 0.2 billion, of greater increases in working capital compared to Q3 2014, due to the revenue accrual from outstanding receivables, including new incentives for crude oil production, and higher income taxes and lower collection of insurance for loss of profits.

As a result of YPF’s financing activities, net cash increased Ps 2.8 billion during Q3 2015 compared to Q3 2014. This increase was driven by new issuances of debt and refinancing of existing debt of Ps 3.2 billion, which were partially offset by Ps 0.4 billion in interest payments.

The cash flow generation mentioned above was directed to investing activities, which totaled Ps 15.8 billion during Q3 2015, a 16.5% increase from Q3 2014 due to increased investments in fixed and intangible assets.

The generation of financial resources described above led to an adequate liquidity level at the end of the quarter, with a total of Ps 10.9 billion in cash and cash equivalents. With regard to the prior quarter net financial debt increased by Ps 9.7 billion (an increase of 17.7%) to reach Ps 64.4 billion in Q3 2015. Total debt expressed in dollars reached USD $8.0 billion, and net debt was USD $6.9 billion, with a net debt/EBITDA(1) ratio of 1.37x.

The average cost of debt denominated in Argentine pesos by the end of Q3 2015 was 23.82%, while the average cost of debt denominated in U.S. dollars was 7.48%.

YPF Notes issued during Q3 2015 and thereafter are detailed below:

 

YPF Note		Amount		Interest Rate		Maturity
Series XL		ARS 500 million		BADLAR + 3.49%		24 months
Series XLI		ARS 1,900 million		BADLAR + 0.0%		60 months
Series XLII		ARS 981 million		BADLAR + 4.0%		60 months
Series XLIII (Q4 2015)		ARS 2,000 million		BADLAR + 0.0%		96 months

 

(1)	Net Debt: $6.870 billion/EBITDA LTM: $5.013 billion =1.37x.

 

8

---

Table of Contents

		Consolidated Results Q3 2015

 

 

5. TABLES AND NOTES   Q3 2015 Results

 

---

Table of Contents

		Consolidated Results Q3 2015

 

 

5.1 CONSOLIDATED STATEMENT OF INCOME

YPF SOCIEDAD ANONIMA AND CONTROLLED COMPANIES

(Unaudited, figures expressed in millions of pesos)

 

Q3 2014				Q2 2015				Q3 2015				Var.% Q3 15/ Q3 14						Jan-Sep 2014				Jan-Sep 2015				Var.% 2015 / 2014
	38,209				39,557				40,931				7.1%			Revenues			104,203				115,190				10.5%
	(26,365	)			(30,010	)			(30,670	)			16.3%			Costs of sales			(74,808	)			(86,756	)			16.0%
	11,844				9,547				10,261				(13.4%)			Gross profit			29,395				28,434				(3.3%)
	(2,766	)			(2,886	)			(2,587	)			(6.5%)			Selling expenses			(7,287	)			(8,065	)			10.7%
	(1,119	)			(1,358	)			(1,301	)			16.3%			Administration expenses			(3,116	)			(3,857	)			23.8%
	(306	)			(387	)			(1,182	)			286.3%			Exploration expenses			(1,230	)			(1,760	)			43.1%
	391				662				440				12.5%			Other operating results, net			616				926				50.3%
	8,044				5,578				5,631				(30.0%)			Operating income			18,378				15,678				(14.7%)
	38				54				36				5.3%			Income on investments in companies			61				52				(14.8%)
																Financial income (expenses), net
	(140	)			71				(31	)			(77.9%)			Gains (losses) on assets			(1,162	)			76				(106.5%)
	480				416				327				(31.9%)			Interests			1,078				1,051				(2.5%)
	(620	)			(345	)			(358	)			(42.3%)			Exchange differences			(2,240	)			(975	)			(56.5%)
	87				(994	)			(670	)			(870.1%)			(Losses) gains on liabilities			4,610				(2,085	)			(145.2%)
	(1,793	)			(2,646	)			(2,401	)			33.9%			Interests			(5,304	)			(7,049	)			32.9%
	1,880				1,652				1,731				(7.9%)			Exchange differences			9,914				4,964				(49.9%)
	8,029				4,709				4,966				(38.1%)			Net income before income tax			21,887				13,721				(37.3%)
	(4,810	)			(2,411	)			(3,082	)			(35.9%)			Income tax			(14,338	)			(7,430	)			(48.2%)
	7				1				34							Net income (loss) for noncontrolling interest			(70	)			17
	3,212				2,297				1,850				(42.4%)			Net income for the period (*)			7,619				6,274				(17.7%)
	8.19				5.86				4.72				(42.3%)			Earnings per share, basic and diluted (*)			19.43				16.00				(17.6%)
	2,515				2,592				3,206				27.5%			Other comprehensive Income			15,159				8,229				(45.7%)
	5,734				4,890				5,090				(11.2%)			Total comprehensive income for the period			22,708				14,520				(36.1%)
	13,603				12,395				13,363				(1.8%)			Adj. EBITDA (**)			32,975				35,967				9.1%

Note: Information reported in accordance with International Financial Reporting Standards (IFRS), except adjusted EBITDA.

 

(*)	Attributable to controlling shareholder.

(**)

Adjusted EBITDA = Net income attributable to shareholders + Net income (loss) for non-controlling interest - Deferred income tax - Income tax - Financial income (losses) gains on liabilities - Financial income gains (losses) on assets - Income on investments in companies + Depreciation of fixed assets + Amortization of intangible assets + Unproductive exploratory drillings.

 

10

---

Table of Contents

		Consolidated Results Q3 2015

 

 

5.2 CONSOLIDATED BALANCE SHEET

YPF SOCIEDAD ANONIMA AND CONTROLLED COMPANIES

(Q3 2015 figures unaudited, figures expressed in millions of pesos)

 

		12/31/2014				09/30/2015
Noncurrent Assets
Intangible assets			4,393				5,033
Fixed assets			156,930				194,047
Investments in companies			3,177				3,309
Deferred income tax assets			244				223
Other receivables and advances			1,691				1,833
Trade receivables			19				342
Total Non-current assets			166,454				204,787
Current Assets
Inventories			13,001				14,431
Other receivables and advances			7,170				11,002
Trade receivables			12,171				15,594
Cash and equivalents			9,758				10,857
Total current assets			42,100				51,884
Total assets			208,554				256,671
Shareholders’ equity
Shareholders’ contributions			10,400				10,370
Reserves and unappropriated retained earnings			62,230				76,230
Noncontrolling interest			151				218
Total Shareholders’ equity			72,781				86,818
Noncurrent Liabilities
Provisions			26,564				29,948
Deferred income tax liabilities			18,948				23,554
Other taxes payable			299				220
Loans			36,030				59,526
Accounts payable			566				721
Total Noncurrent Liabilities			82,407				113,969
Current Liabilities
Provisions			2,399				2,525
Income tax liability			3,972				1,058
Other taxes payable			1,411				3,602
Salaries and social security			1,903				2,026
Loans			13,275				15,720
Accounts payable			30,406				30,953
Total Current Liabilities			53,366				55,884
Total Liabilities			135,773				169,853
Total Liabilities and Shareholders’ Equity			208,554				256,671

Note: Information reported in accordance with International Financial Reporting Standards (IFRS).

 

11

---

Table of Contents

		Consolidated Results Q3 2015

 

 

5.3 CONSOLIDATED STATEMENT OF CASH FLOW

YPF SOCIEDAD ANONIMA AND CONTROLLED COMPANIES

(Unaudited, figures expressed in millions of pesos)

 

Q3 2014				Q2 2015				Q3 2015						Jan-Sep 2014				Jan-Sep 2015
												Cash Flows from operating activities
	3,219				2,298				1,884			Net income			7,549				6,291
	(38	)			(54	)			(36	)		Income from investments in companies			(61	)			(52	)
	5,343				6,502				6,895			Depreciation of fixed assets			13,660				18,961
	77				91				65			Amortization of intangible assets			250				225
	868				847				1,811			Consumption of materials and fixed assets and intangible assets retired, net of provisions			2,671				3,250
	922				662				709			Net increase in provisions			2,465				2,274
	508				1,118				(253	)		Interest, exchange differences and other			(1,042	)			1,350
	28				26				36			Stock compensation plan			56				89
	(505	)			(12	)			(562	)		Accrued insurance			(1,632	)			(1,085	)
												Changes in assets and liabilities:
	(707	)			(2,023	)			(1,218	)		Trade receivables			(4,150	)			(2,853	)
	(64	)			(2,698	)			(1,053	)		Other receivables and liabilities			(802	)			(4,299	)
	75				499				(1,005	)		Inventories			232				(240	)
	1,323				1,278				889			Accounts payable			1,663				3,182
	2,082				538				463			Other Taxes payable			3,006				2,112
	419				206				396			Salaries and Social Securities			431				123
	(426	)			(507	)			(347	)		Decrease in provisions from payments			(1,580	)			(1,247	)
	18				29				2			Dividends from investments in companies			233				181
	1,098				1,673				—			Insurance charge for loss of profit			1,689				1,673
	4,009				(471	)			1,106			Net charge of income tax payment			11,756				1,780
	4,810				2,411				3,082			Income tax			14,338				7,430
	(801	)			(2,882	)			(1,976	)		Income tax payments			(2,582	)			(5,650	)
	18,249				10,002				9,782			Net cash flows provided by operating activities			36,394				31,715
												Cash flows from investing activities
												Payments for investments:
	(13,213	)			(15,239	)			(15,825	)		Acquisitions of fixed assets and Intangible assets			(35,365	)			(46,692	)
	(9	)			(161	)			—			Contributions and acquisitions of interests in companies			(94	)			(163	)
	—				—				—			Liabilities of sales of fixed assets			1,711				—
	(357	)			—				—			Acquisitions of participation in UTEs			(869	)			—
	—				—				—			Acquisition of subsidiaries net of acquired funds			(6,103	)			—
	—				—				—			Insurance charge for material damages			1,818				—
	(13,579	)			(15,400	)			(15,825	)		Net cash flows used in investing activities			(38,902	)			(46,855	)
												Cash flows from financing activities
	(3,030	)			(7,340	)			(5,652	)		Payment of loans			(9,012	)			(17,624	)
	(969	)			(1,766	)			(1,386	)		Payment of interests			(3,215	)			(4,531	)
	4,141				17,443				9,935			Proceeds from loans			19,342				38,162
	(464	)			—				(503	)		Payments of dividends			(464	)			(503	)
	(145	)			(45	)			(74	)		Acquisition of own shares			(198	)			(119	)
	(467	)			8,292				2,320			Net cash flows provided by financing activities			6,453				15,385
	222				305				342			Effect of changes in exchange rates on cash and equivalents			1,215				854
	4,425				3,199				(3,381	)		Increase (Decrease) in Cash and Equivalents			5,160				1,099
	11,448				11,039				14,238			Cash and equivalents at the beginning of the period			10,713				9,758
	15,873				14,238				10,857			Cash and equivalents at the end of the period			15,873				10,857
	4,425				3,199				(3,381	)		Increase (Decrease) in Cash and Equivalents			5,160				1,099
												COMPONENTS OF CASH AND EQUIVALENT AT THE END OF THE PERIOD
	6,567				9,382				9,195			Cash			6,567				9,195
	9,306				4,856				1,662			Other Financial Assets			9,306				1,662
	15,873				14,238				10,857			TOTAL CASH AND EQUIVALENTS AT THE END OF THE PERIOD			15,873				10,857

Note: Information reported in accordance with International Financial Reporting Standards (IFRS).

 

12

---

Table of Contents

		Consolidated Results Q3 2015

 

 

5.4 CONSOLIDATED BUSINESS SEGMENT INFORMATION

(Unaudited, figures expressed in millions of pesos)

 

Q3 2015		Upstream				Downstream				Corporate and Other				Consolidation Adjustments				Total
Revenues			4,288				36,345				297				—				40,930
Revenues from intersegment sales			16,202				334				1,639				-18,175				—
Revenues			20,490				36,679				1,936				-18,175				40,930
Operating Income (loss)			2,171				3,522				-417				355				5,631
Investments in companies			3				33				—				—				36
Depreciation of fixed assets			6,023				778				94				—				6,895
Acquisitions of fixed assets			12,315				2,813				625				—				15,753
Assets			158,560				79,353				20,371				-1,613				256,671
Q3 2014		Upstream				Downstream				Corporate and Other				Consolidation Adjustments				Total
Revenues			2,607				35,459				143				—				38,209
Revenues from intersegment sales			16,750				287				1,476				-18,513				—
Revenues			19,357				35,746				1,619				-18,513				38,209
Operating Income (loss)			4,463				3,864				-471				188				8,044
Investments in companies			-3				41				—				—				38
Depreciation of fixed assets			4,618				634				91				—				5,343
Acquisitions of fixed assets			11,120				2,312				344				—				13,776
Assets			117,737				67,692				22,279				-2,696				205,012

 

13

---

Table of Contents

		Consolidated Results Q3 2015

 

 

5.5 MAIN DOLLAR DENOMINATED FINANCIAL MAGNITUDES (unaudited figures)

 

Million USD		2014 Q3				2014 Q2				2015 Q3				Var Q3 15/ Q3 14				2014 Jan-Sep				2015 Jan-Sep				Var 2015 / 2014
INCOME STATEMENT
Revenues			4,632				4,443				4,448				-4.0%				13,113				12,921				-1.5%
Costs of sales			-3,196				-3,371				-3,333				4.3%				-9,414				-9,732				3.4%
Gross profit			1,436				1,072				1,115				-22.3%				3,699				3,189				-13.8%
Selling expenses			-335				-324				-281				-16.2%				-917				-905				-1.3%
Administration expenses			-136				-153				-141				4.2%				-392				-433				10.3%
Exploration expenses			-37				-43				-128				246.3%				-155				-197				27.5%
Other expenses			47				74				48				0.9%				78				104				34.0%
Operating income			975				627				612				-37.2%				2,313				1,759				-24.0%
Depreciation of fixed assets			648				730				749				15.7%				1,719				2,127				23.7%
Amortization of intangible assets			9				10				7				-24.3%				31				25				-19.8%
Unproductive exploratory drillings			17				25				84				397.9%				86				124				43.1%
Adj. EBITDA (**)			1,649				1,392				1,452				-11.9%				4,150				4,034				-2.8%
UPSTREAM
Revenues			2,347				2,197				2,227				-5.1%				6,413				6,576				2.5%
Operating income			541				285				236				-56.4%				1,357				781				-42.4%
Depreciation			560				633				655				16.9%				1,468				1,845				25.7%
Capital expenditures			1,348				1,394				1,336				-0.9%				3,573				3,971				11.1%
DOWNSTREAM
Revenues			4,334				3,962				3,986				-8.0%				12,382				11,647				-5.9%
Operating income			468				434				383				-18.3%				1,162				996				-14.3%
Depreciation			77				87				85				10.0%				223				252				13.3%
Capital expenditures			280				226				306				9.1%				647				702				8.4%
CORPORATE AND OTHER
Operating income			-57				-58				-45				-20.6%				-150				-166				10.7%
Capital expenditures			42				38				68				62.9%				104				132				27.5%
CONSOLIDATION ADJUSTMENTS
Operating income			23				-35				39				69.3%				-57				147				-358.9%
Average exchange rate for the period			8.25				8.90				9.20								7.95				8.91

NOTE: The calculation of the main financial figures in U.S. dollars is derived from the calculation of the financial results expressed in Argentine pesos using the average exchange rate for each period.

 

(**)

Adjusted EBITDA = Net income attributable to shareholders + Net income (loss) for non-controlling interest - Deferred income tax - Income tax - Financial income (losses) gains on liabilities - Financial income gains (losses) on assets - Income on investments in companies + Depreciation of fixed assets + Amortization of intangible assets + Unproductive exploratory drillings

 

14

---

Table of Contents

		Consolidated Results Q3 2015

 

 

5.6 MAIN PHYSICAL MAGNITUDES (Unaudited figures)

 

				2014																								2015
		Unit		Q1				Q2				Q3				Q4				Cum. 2014				Q1				Q2				Q3				Cum. 2015
Production
Crude oil production		Kbbl			21,753				21,923				22,634				22,986				89,296				22,250				22,736				22,934				67,920
NGL production		Kbbl			4,831				3,626				3,970				5,348				17,776				5,448				3,522				4,015				12,985
Gas production		Mm3			3,355				3,970				4,138				4,021				15,483				3,950				4,063				4,080				12,092
Total production		Kboe			47,684				50,517				52,628				53,621				204,450				52,538				51,808				52,611				156,957
Henry Hub		USD/Mbtu			4.94				4.67				4.06				4.00				4.42				2.98				2.64				2.77				2.80
Brent		USD/Bbl			108.17				109.70				101.82				76.40				99.02				53.92				61.69				50.23				55.32
Sales
Sales of petroleum products
Domestic market
Gasoline		Km3			1,229				1,126				1,158				1,210				4,723				1,246				1,171				1,208				3,625
Diesel		Km3			1,920				2,043				2,160				2,044				8,166				1,906				2,169				2,040				6,114
Jet fuel and kerosene		Km3			124				108				116				123				471				125				108				130				364
Fuel Oil		Km3			294				297				257				320				1,168				348				396				378				1,122
LPG		Km3			151				236				275				186				848				176				212				238				626
Others (*)		Km3			286				304				361				589				1,540				305				346				314				965
Total domestic market		Km3			4,004				4,113				4,327				4,472				16,916				4,106				4,403				4,308				12,816
Export market
Petrochemical naphtha		Km3			0				0				0				0				0				18				12				7				38
Jet fuel and kerosene		Km3			129				116				126				128				500				122				127				130				379
LPG		Km3			124				35				24				115				299				149				52				42				243
Bunker (Diesel and Fuel Oil)		Km3			194				205				128				178				704				153				115				130				398
Others (*)		Km3			8				18				5				7				38				7				10				4				21
Total export market		Km3			455				375				284				428				1,541				449				316				314				1,078
Total sales of petroleum products		Km3			4,459				4,488				4,610				4,900				18,457				4,555				4,718				4,622				13,895
Sales of petrochemical products
Domestic market
Fertilizers		Ktn			32				39				76				80				227				21				34				45				100
Methanol		Ktn			47				73				103				85				308				49				61				75				185
Others		Ktn			138				143				129				131				541				130				164				143				437
Total domestic market		Ktn			217				255				308				296				1,076				200				259				263				722
Export market
Methanol		Ktn			33				22				21				1				77				41				36				54				131
Others		Ktn			24				33				67				53				177				28				50				33				111
Total export market		Ktn			57				55				88				54				254				69				86				87				242
Total sales of petrochemical products		Ktn			274				310				396				350				1,330				269				345				350				964
Sales of other products
Grain, flours and oils
Domestic market		Ktn			20				22				21				3				66				30				31				13				74
Export market		Ktn			85				251				292				212				840				155				418				358				931
Total Grain, flours and oils		Ktn			105				273				313				215				906				185				449				371				1,005
Main products imported
Gasolines and Jet Fuel		Km3			179				94				0				42				316				20				22				43				85
Diesel		Km3			473				275				191				304				1,243				196				343				346				885

 

(*)	Principally includes sales of oil and lubricant bases, grease, asphalt and residual carbon, among others.

 

15

---

Table of Contents

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 may include statements regarding the intent, belief, plans, current expectations or objectives as of the date hereof of YPF and its management, including statements with respect to trends affecting YPF’s future financial condition, financial, operating, reserve replacement and other ratios, results of operations, business strategy, geographic concentration, business concentration, production and marketed volumes and reserves, as well as YPF’s plans, expectations or objectives with respect to future capital expenditures, investments, expansion and other projects, exploration activities, ownership interests, divestments, cost savings and dividend payout policies. These forward-looking statements may also include assumptions regarding future economic and other conditions, such as the future price of petroleum and petroleum products, refining and marketing margins and exchange rates. These statements are not guarantees of future performance, prices, margins, exchange rates or other events and are subject to material risks, uncertainties, changes in circumstances and other factors that may be beyond YPF’s control or may be difficult to predict.

YPF’s actual future financial condition, financial, operating, reserve replacement and other ratios, results of operations, business strategy, geographic concentration, business concentration, production and marketed volumes, reserves, capital expenditures, investments, expansion and other projects, exploration activities, ownership interests, divestments, cost savings and dividend payout policies, as well as actual future economic and other conditions, such as the future price of petroleum and petroleum products, refining margins and exchange rates, could differ materially from those expressed or implied in any such forward-looking statements. Important factors that could cause such differences include, but are not limited to fluctuations in the price of petroleum and petroleum products, supply and demand levels, currency fluctuations, exploration, drilling and production results, changes in reserves estimates, success in partnering with third parties, loss of market share, industry competition, environmental risks, physical risks, the risks of doing business in developing countries, legislative, tax, legal and regulatory developments, economic and financial market conditions in various countries and regions, political risks, wars and acts of terrorism, natural disasters, project delays or advancements and lack of approvals, as well as those factors described in the filings made by YPF and its affiliates before the Comisión Nacional de Valores in Argentina and with the U.S. Securities and Exchange Commission, in particular, those described in “Item 3. Key Information—Risk Factors” and “Item 5. Operating and Financial Review and Prospects” in YPF’s Annual Report on Form 20-F for the fiscal year ended December 31, 2014 filed with the Securities and Exchange Commission. In light of the foregoing, the forward-looking statements included in this document may not occur.

Except as required by law, YPF does not undertake to publicly update or revise these forward-looking statements even if experience or future changes make it clear that the projected performance, conditions or events expressed or implied therein will not be realized.

These materials do not constitute an offer for sale of YPF S.A. bonds, shares or ADRs in the United States or elsewhere. The information contained herein has been prepared to assist interested parties in making their own evaluations of YPF.

Investor Relations

E-mail: inversoresypf@ypf.com

Website: ir.ypf.com

Macacha Güemes 515

C1106BKK Buenos Aires (Argentina)

Phone: 54 11 5441 1215

Fax: 54 11 5441 2113

---

Table of Contents

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

				YPF Sociedad Anónima
Date: November 5, 2015				By:		/s/ Diego Celaá
				Name: Title:		Diego Celaá Market Relations Officer