Ypf Sa Class D · BCBA:YPFD
Ypf Sa Class D — Q1 2019 Earnings Presentation
19 slides from Ypf Sa Class D's earnings presentation, May 10, 2019
Slide 1: 1st Quarter 2019 Earnings Webcast
1st QUARTER 2019 EARNINGS WEBCAST May 10th, 2019 1
Slide 2: Important Notice
IMPORTANT NOTICE Safe harbor statement under the US Private Securities Litigation Reform Act of 1995. This document contains statements that YPF believes constitute forward-looking statements within the meaning of the US Private Securities Litigation Reform Act of 1995. These forward-looking stateme
Slide 3: Total IFR continues to break historical lows
TOTAL IFR CONTINUES TO BREAK HISTORICAL LOWS SAFETY AND SUSTAINABILITY AS CORE VALUE TOTAL IFR DOW JONES # of people injured for each million hours worked SUSTAINABILITY INDEX (1) 2009 – Q1 2019 Oil & Gas Upstream & Integrated Industry YPF score by RobecoSAM 100 DJSI OGX Industry Average 1.89 90 80
Slide 4: Financial highlights
1ST QUARTER 2019 Financial highlights Revenues of Ps 130.9 billion (+72.6%) Adjusted EBITDA(1) of Ps 39.9 billion (+62.6%) CAPEX of Ps 30.4 billion (+104.2%) Hydrocarbon production down 11.5% Net shale oil production up 63.3% Operating cash flow of Ps 42.6 billion (+99.0%) (1) See description of Adj
Slide 5: Revenues declined 14% in USD mainly due to lower natural gas sales
REVENUES DECLINED 14% IN USD MAINLY DUE TO LOWER NATURAL GAS SALES WHILE MARGINS REMAINED FAIRLY STABLE REVENUES (1) ADJUSTED EBITDA (1) (2) CAPEX (1) (In Millions of USD) (In Millions of USD) (In Millions of USD) -13.9% -18.0% +2.9% 3,858 1,247 3,321 1,022 757 779 Q1 2018 Q1 2019 Q1 2018 Q1 2019 Q1
Slide 6: Adj. EBITDA increased in Q1 2019 mainly driven by downstream
ADJ. EBITDA INCREASED IN Q1 2019 MAINLY DRIVEN BY THE DOWNSTREAM BUSINESS ADJUSTED EBITDA (In Billions of PS) 3.7 0.7 39.9 11.4 -0.4 7.1 24.5 17.4 10.6 -29.3 Operating Non-cash Adj. EBITDA Q1 Downstream Upstream Corporate & G&E Adj. EBITDA Q1 Non-cash Operating Income Q1 expenses (1) 2018 Eliminatio
Slide 7: Positive free cash flow driven by strong cash generation
POSITIVE FREE CASH FLOW DRIVEN BY STRONG CASH GENERATION CONSOLIDATED STATEMENT OF ADJUSTED CASH FLOW FREE CASH FLOW (1) (In Billions of PS) (In Billions of PS) 4.2 42.6 3.5 12.1 +115.0% -30.5 68.2 57.0 -8.6 5.6 Cash & Cash flow Net financing Others Capex Interest Cash & Q1 2018 Q1 2019 equivalents
Slide 8: Strong enough cash position to cover short term maturities
STRONG ENOUGH CASH POSITION TO COVER SHORT TERM MATURITIES FINANCIAL DEBT AMORTIZATION SCHEDULE (1) (2) USD denominated debt DETAILS (In Millions of USD) Peso denominated debt 1,759 92% denominated 1,576 1,549 in USD and 8% 1,507 1,493 in Argentine Pesos Average interest rates of 7.42% in USD 842 an
Slide 9: Total production decreased 11.5% driven by natural gas curtailments
TOTAL PRODUCTION DECREASED 11.5% DRIVEN BY NATURAL GAS CURTAILMENTS TOTAL PRODUCTION PRODUCTION BREAKDOWN (KBOE/D) NGL (KBOE/D) Conventionals Shale + Tight Natural Gas -11.5% Crude Oil 549.6 22.1 549.6 -11.2% 486.5 -51.2 486.5 27% -34.0 28% -20.6% 73% -0.5% 72% Q1 2018 Q1 2019 Q1 2018 Shale Conventi
Slide 10: Strong increase in net shale production with cost reductions
STRONG INCREASE IN NET SHALE PRODUCTION COMBINED WITH COST REDUCTIONS NET SHALE O&G PRODUCTION(1) NGL SHALE OIL DEVELOPMENT COST - LOMA CAMPANA (KBOE/D) Natural Gas (USD/BOE) +45.1% 71.1 Crude Oil 16.1 13.4 11.4 49.0 ~10 2016 2017 2018 Q1 2019 +63.3% SHALE OIL OPEX COST - LOMA CAMPANA (USD/BOE) Q1 2
Slide 11: Update on Vaca Muerta shale oil
UPDATE ON VACA MUERTA SHALE OIL Exploration operated and non operated Pilots operated Pilots non-operated ~2 BN USD gross operated Development capex planned for 2019 3 ongoing shale oil developments 6 shale oil operated pilots to prepare future developments Additional shale oil blocks in exploration
Slide 12: Argentina off-shore
ARGENTINA OFF-SHORE CAN -102 • Exploration blocks in North & Malvinas basins with high potential CAN -100 • Partnerships with international players CAN -114 • Low financial commitments – 48 MM USD over 4 years GLOBAL PLAYERS PARTICIPATION MAGALLANES MLO -123
Slide 13: Topping unit incident in La Plata refinery affected crude processed
TOPPING UNIT INCIDENT IN LA PLATA REFINERY AFFECTED AMOUNT OF CRUDE PROCESSED; SLIGHT DECREASE IN DOMESTIC SALES WERE PARTIALLY OFFSET BY HIGHER EXPORTS CRUDE PROCESSED SALES OF REFINED PRODUCTS (KBBL/D) (KM 3) 290.7 -7.5% -0.9% 4,424 4,385 269.0 Exports -0.7% Others GLP Fuel Oil JP1 +0.2% Gasoline
Slide 14: Fuel demand remained stable during Q1 2019
FUEL DEMAND REMAINED STABLE DURING Q1 2019 DESPITE MARKET CONTRACTION MONTHLY GASOLINE SALES MONTHLY DIESEL SALES ( KM3) (KM3) 500 -0.7% +0.2% 750 2018 480 2017 700 2018 460 2019 2019 650 2017 440 600 420 400 550 380 500 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug
Slide 15: Higher downstream margins driven by lower local crude oil prices
HIGHER DOWNSTREAM MARGINS DRIVEN BY LOWER LOCAL CRUDE OIL PRICES DOWNSTREAM ADJUSTED EBITDA(1) F.O.B. REFINERY/TERMINAL PRICE (2) Excluding inventory revaluation USD/BBL (USD per refined barrel) Gasoline Diesel 104 16.5 16.7 96 96 93 86 88 99 92 92 86 12.3 7.9 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019
Slide 16: Gradual adjustments in fuel prices to bridge gap with import parity
GRADUAL ADJUSTMENTS IN FUEL PRICES TO BRIDGE GAP WITH IMPORT PARITY FUELS BLENDED PRICE VS IMPORT PARITY(1) (% VARIATION) Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19* Fuels Blended Price Import Parity (1) Import parity includ
Slide 17: Summary
Continued improving safety track record; SUMMARY sustainability as a core value Total production decrease driven by natural gas curtailments; shale oil production offset decline in conventional oil Further reductions in shale oil development and OPEX costs Positioned YPF in a new potential growth ar
Slide 18: Questions and Answers
1st Quarter Earnings Webcast QUESTIONS AND ANSWERS 18
Slide 19: 1st Quarter 2019 Earnings Webcast
1st QUARTER 2019 EARNINGS WEBCAST May 10th, 2019 19