Ypf Sa Class D · BCBA:YPFD
Ypf Sa Class D — Q2 2016 Earnings Presentation
23 slides from Ypf Sa Class D's earnings presentation, Aug 5, 2016
Slide 1: 2nd Quarter 2016 Earnings Webcast
2nd Quarter 2016 Earnings Webcast August 5, 2016
Slide 2: Disclaimer
Disclaimer Safe harbor statement under the US Private Securities Litigation Reform Act of 1995. This document contains statements that YPF believes constitute forward-looking statements within the meaning of the US Private Securities Litigation Reform Act of 1995. These forward-looking statements ma
Slide 3: Contents
Contents 1 Q2 2016 Results 2 Financial Situation 3 Summary
Slide 4: Q2 2016 Results – Highlights
Q2 2016 Results – Highlights Revenues of Ps 52.8 billion (+31.9%) Adj. EBITDA(1) reached Ps 17.2 billion (+38.2%) Operating Income was Ps 5.3 billion (-4.7%) Total Capex was Ps 14.5 billion (-1,8%) Crude oil production was 243.0 Kbbl/d (-2.8%) Natural gas production was 44.8 Mm3/d (-0.4%) Diesel and
Slide 5: Results Expressed in US Dollars
Q2 2016 Results Expressed in US Dollars The devaluation of the local currency resulted in an immediate reduction of Revenues and Adj. EBITDA; EBITDA margin expanded to 33%. Revenues (1) Adj. EBITDA (1) (2) Operating Income (1) (in millions of USD) (in millions of USD) (in millions of USD) 4,493 - 17
Slide 6: Operating Income
Q2 2016 Operating Income Operating Income was down 4.7%; both business segments were lower and partially offset by other effects, mainly the deconsolidation of Maxus entities. (in millions of Ps) 5,578 991 5,318 -818 -433 Q2 2015 Upstream Downstream Corporate & Other Q2 2016 6
Slide 7: Operating Income
Q2 2016 Operating Income Revenues were up in line with most of our cash costs, but higher depreciation on our dollar-based assets contributed to a 4.7% decline in Operating Income. (in millions of Ps) 986 12,756 -4,577 -3,931 5,578 5,318 -3,709 -1,434 -351 Q2 2015 Revenues Other DD&A Cost of Purchas
Slide 8: Upstream Results
Q2 2016 Upstream Results Upstream Operating Income was down 32.3% despite the better performance of prices vis-à- vis cash costs; DD&A was 72.8% higher. (In million of Ps) 8,282 -4,101 2,534 -2,864 -970 1,716 -815 -351 Q2 2015 Revenues DD&A Production Royalties Other Exploration Q2 2016 costs expens
Slide 9: Upstream Results – Production
Q2 2016 Upstream Results – Production Total production was up 0.3%, driven by a 26% growth in NGL; crude oil and natural gas production down by 2.8% and 0.4%, respectively, negatively affected by labor strikes. Crude oil production Natural gas production Total production (Kbbl/d) (Mm3/d) (Kboe/d) -2
Slide 10: Shale Development Update
Q2 2016 Shale Development Update 503 22 51.6 Loma Campana horizontal 2016 wells production (kbbl/d) 800 Producing New wells Kboe/d Q2 2016 Type Well 566 Kbbl Average 2016 wells wells in Q2 2016 Shale production 600 400 Gross Shale O&G production 50.6 51.6 (Kboe/d)* 49.8 200 46.2 41.7 43.3 38.0 0 Day
Slide 11: Tight Gas Production
Q2 2016 Tight Gas Production Additional compression in Tight Gas Gross Production - Mm3/d Rincón del Mangrullo and 12 11.0 TG EFO Lajas Estación Fernandez Oro TG RdM Mulichinco boosted tight gas 10 TG ATSB Lajas 9.0 production in Q2 2016 8.1 8.4 7.9 8 7.3 6.7 6.9 6 5.3 4 3.4 1.9 2 0.5 0.6 0.7 0.6 0.
Slide 12: Downstream Results
Q2 2016 Downstream Results Downstream Operating Income declined 11.2% as price increases were below the increase in Purchases; volumes sold were disappointing. (in millions of Ps) 11,994 -9,295 3,865 3,432 -1,401 -833 -555 -343 Q2 2015 Revenues Purchases Production SG&A DD&A Other Q2 2016 costs expe
Slide 13: Downstream Results - Sales
Q2 2016 Downstream Results - Sales Refinery output affected by scheduled maintenance activity, mostly in our Plaza Huincul refinery. Sales volumes were down by 6.2% due to lower diesel and gasoline demand. Crude processed Domestic sales of refined products (kbbl/d) (Km3) -5.3% -6.2% 305 4,399 4,126
Slide 14: Downstream Results – Demand
Q2 2016 Downstream Results – Demand Gasoline and diesel sales were down by 4.4% and 6.0%, respectively; slight reduction in market share. Monthly Gasoline Sales (Km3) Monthly Diesel Sales (Km3) 480 - 4.4% 800 + -6.0% 0.8% 460 2015 750 440 2016 2014 420 700 2014 400 650 2015 380 360 600 2016 340 550
Slide 15: Capex
Q2 2016 Capex Capex was down 38.3% in USD terms and 1.8% in pesos, mostly due to activity reduction in the Upstream segment. Upstream (in millions of Ps) Upstream Activity breakdown: 76% in drilling and Downstream workovers, 18% in facilities and 6% in exploration and other upstream activities. Othe
Slide 16: Gas & Power Update
Q2 2016 Gas & Power Update New VP created to develop a holistic approach to natural gas development, midstream infrastructure, energy efficiency and power generation. In the context of the recent power auctions launched by the government, YPF was awarded two projects: 270 MW in Tucuman where YPF alr
Slide 17: Contents
Contents 1 Q2 2016 Results 2 Financial Situation 3 Summary
Slide 18: Cash Flow From Operations
Q2 2016 Cash Flow From Operations Cash position within our comfort level by the end of Q2 2016; Operating Cash Flow was down due to working capital build-ups mainly related to natural gas sales and subsidies. Consolidated statement of cash flows Cash flow from operations (in million of Ps) (in milli
Slide 19: Financial Situation Update
Q2 2016 Financial Situation Update(1) Cash position strengthened by debt new issuance and collection of 2015 gas subsidies during start of Q3 2016; Cash & Equivalents covers debt maturities of next 18 months. Financial debt amortization schedule (1) (2) (in millions of USD) 2,962 Debt profile highli
Slide 20: Contents
Contents 1 Q2 2016 Results 2 Financial Situation 3 Summary
Slide 21: Summary
Q2 2016 Summary Extremely challenging conditions in first half of 2016 • Soft demand • Devaluation of currency • Tension around wage discussion • Natural gas receivables Still targeting 10/20% reduction in EBITDA but preserving margins Significant improvements in tight and shale development Leverage
Slide 22: Questions and Answers
Questions and Answers 2nd Quarter 2016 Earnings Webcast
Slide 23: 2nd Quarter 2016 Earnings Webcast
2nd Quarter 2016 Earnings Webcast August 5, 2016