Ypf Sa Class D · BCBA:YPFD
Ypf Sa Class D — FY2014 Earnings Presentation
30 slides from Ypf Sa Class D's earnings presentation, Feb 27, 2015
Slide 1: Full Year 2014 Earnings Webcast
Full Year 2014 Earnings Webcast February 27, 2015 Buenos Aires, Argentina
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 Highlights 2014 2 Review of Operations 3 Financial Results 4 Financial Situation 5 Outlook 3
Slide 4: Highlights 2014
Highlights 2014 Increased sales by 6.4% in USD driven by volume and price increase across most products Increased Adj. EBITDA by 16.8% in USD, Operating Income by 11.0% in USD and operating cash flow by 120% in USD, expanding Adj. EBITDA margin to 29.2% Upstream production increase of 13.5% to 560.1
Slide 5: Contents
Contents 1 Highlights 2014 2 Review of Operations 3 Financial Results 4 Financial Situation 5 Outlook 5
Slide 6: Review of Operation – Results Expressed in US Dollars
Review of Operation – Results Expressed in US Dollars Volume and sales growth resulted in margin expansion. Adj. EBITDA grew by 17% and operating income by 11% y-o-y. Revenues (1) Adj. EBITDA (1) (2) Operating Income (1) (millions of USD) (millions of USD) (millions of USD) 17,576 2,445 5,128 +6.4%
Slide 7: Review of Operations Production
Review of Operations Production Production increase resulting from development of shale + tight, conventional fields and acquisitions. Total Production (Kboe/d) Crude Oil Production (Kbbl/d) Natural Gas Production (Mm3/d) 560.1 244.6 42.4 +13.5% 48,7 +5.3% +25.1% 493.4 38,6 21,8 232.3 33.9 471,6 472
Slide 8: Review of Operations Reserves
Review of Operations Reserves Boosted proved reserves by 11.9%. Solid results coming from secondary recovery projects, tight gas and shale formations, extension of concessions and acquisitions. Total Hydrocarbon (Mboe) Liquids (Mbbl) Natural Gas (Mboe) RRR 163% RRR 144% RRR 184% 537 1,212 675 +11.9%
Slide 9: Progress on Shale Oil & Gas Developments
Progress on Shale Oil & Gas Developments Loma Campana (Oil) 290 Horizontal well sweet spot identified in Loma Campana Shale wells in production Three distinct horizons evaluated with delineation wells 2015 focus shifting to more cost effective horizontal wells 182 El Orejano (Gas) Shale wells
Slide 10: Shale Development Main Challenges
Shale Development Main Challenges Ongoing Initiatives Increase the extension and number of fractures of horizontal wells. Optimize costs by using national sand and new stimulation service contracts. Low-cost monobore 3 ½” horizontal wells for areas with low productivity. Future Challenges De
Slide 11: Renewed Focus on Natural Gas
Renewed Focus on Natural Gas Gas production boosted mainly due to YSUR and Tight Gas performance 50 45 40 110 35 Gas wells drilled in 2014 30 Mm3/d 25 20 15 25% 10 Production Growth Y-o-Y 5 0 42.4 CONVENTIONAL YSUR TIGHT GAS SHALE Mm3/d Gas Production* (*) Includes YSUR, MAXUS and Ramos YEE 11
Slide 12: Stay the course on Mature Fields
Stay the course on Mature Fields Focus on Secondary Recovery of Mature Fields 250 40% Of total Oil Production 200 kbbl/d 150 1 billion Barrels of water Injected 100 50 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 10% PRIMARY SECONDARY YSUR SHALE Production Growth Y-o-Y 12
Slide 13: Review of Operations Downstream Performance
Review of Operations Downstream Performance Crude processing up 4% to 91% of capacity. Sales volume growth across most products. Crude processed (kbbl/d) Domestic sales of refined products (Km3) +6% 16,916 290 15,988 +4.3% +54% Others 278 LPG +4% Fuel Oil JP1 Gasoline +1% Diesel 2013 2014 2013 2014
Slide 14: Review of Operations Refined Products Demand
Review of Operations Refined Products Demand Brand recognition; solid demand based on slight market share growth. Monthly Gasoline Sales (Km3) Monthly Diesel Sales (Km3) 800 440 + 3.9% 2014 + 0.8% 750 420 2013 2013 400 700 380 650 2014 360 600 340 550 320 300 500 Jan Feb Mar Apr May Jun Jul Aug Sep
Slide 15: Recent changes in domestic prices
Recent changes in domestic prices 5% reduction of gasoline and diesel prices at the pump, partially supported by federal taxes reduction. (Dec. 2579/14) Understanding among various sectors and the Argentine Federal Government to reduce domestic crude oil prices by U.S.$7/Bbl. • Lower cost for YPF on
Slide 16: Contents
Contents 1 Highlights 2014 2 Review of Operations 3 Financial Results 3 Financial Situation 4 Outlook 16
Slide 17: FY 2014 Financial Results
FY 2014 Financial Results Production and sales volume growth, coupled with pricing discipline, led to solid financial results and healthy margins. Revenues (millions of Ps) Adj.EBITDA (millions of Ps) (1) Operating Income (millions of Ps) 141,942 41.412 19,742 +57.5% +72.8% +64.3% 90,113 23.962 12,0
Slide 18: FY 2014 Financial Results
FY 2014 Financial Results Operating income reached Ps 19.7 billion during 2014, 64% above 2013, despite Ps 1.2 billion of non-cash provision at Maxus In million of Ps 51,829 -17,859 -10,105 -8,700 19,742 -4,121 -2,112 -1,205 12,015 2013 Revenues Other costs of Purchases DD&A SG&A Others Exploration
Slide 19: FY2014 Upstream Financial Results
FY2014 Upstream Financial Results Upstream operating income grew 72% due to higher revenues driven by an increase of production and better prices for crude oil and natural gas. In millions of Ps 28,000 -10,973 -7,589 12,353 -3,617 7,179 -647 2013 Revenues Production DD&A Royalties Royalties 2014 cos
Slide 20: FY2014 Downstream Financial Results
FY2014 Downstream Financial Results Downstream operating income was positively impacted by higher sales volume and prices. In millions of Ps 46,972 -32,399 -4,406 10,978 -2,906 6,721 -2,011 -993 2013 Revenues Purchases Production SG&A Other DD&A 2014 costs expenses 20
Slide 21: Q4 2014 Financial Results
Q4 2014 Financial Results Although operating income decreases, mainly because of the impact of two one-time charges, recurring results were positive by 10.7%. In millions of Ps -3,674 12,445 -3,535 -2,997 1,479 -2,829 3,820 1,227 2,341 -1,366 2,591 -500 1,364 Recurring One-time Q4 Q4 2013 Revenues O
Slide 22: Q4 2014 Upstream Results – Production
Q4 2014 Upstream Results – Production Total production grew by 12.7% boosted by a strong increased of 23% in natural gas. Total production (kboe/d) Crude oil production (kbbl/d) Natural gas production (Mm3/d) 582.8 249.8 43.7 +12.7% +4.4% +23.1% 517.0 239.3 35.5 Q4 2013 Q4 2014 Q4 2013 Q4 2014 Q4 20
Slide 23: Q4 2014 Downstream Results - Sales
Q4 2014 Downstream Results - Sales Refinery utilization reached 93% helped by lighter crude coming from unconventional production. All product demand grew by 9%. Crude processed (kbbl/d) Domestic sales of refined products (Km3) 296 +9.2% +4.3% 4,472 4,094 287 Others +34% LPG +0.4% Fuel Oil JP1 Gasol
Slide 24: Contents
Contents 1 Highlights 2014 2 Review of Operations 3 Financial Results 4 Financial Situation 5 Outlook 24
Slide 25: FY 2014 Financial Situation
FY 2014 Financial Situation Cash flow from operations grew Ps 25 billion against 2013. Sound capital structure; Net Debt / Adj. EBITDA LTM down to 0.9x(3). Consolidated statement of cash flows Cash flow from operations (in millions of Ps) (in millions of Ps) 46.154 6,296 +120% 46,154 20.964 10.713 9
Slide 26: Financial Situation Update
Financial Situation Update1 Cash position strengthened by additional indebtness in the international and local markets during Q1 2015. Financial debt amortization schedule (1) (2) (in millions of USD) Peso denominated debt 35% Average interest rates of 6.84% 1,624 in USD and 23.05% in Pesos Average
Slide 27: Contents
Contents 1 Highlights 2014 2 Review of Operations 3 Financial Results 4 Financial Situation 4 Outlook 27
Slide 28: Outlook 2015
Outlook 2015 Track Delivered 2012, 2013 and 2014 results ahead of Record expectations and built a strong base to face the challenges of a transition year 2015 Adapt to a new business environment by: • Maintaining activity to avoid compromising long term growth • Focusing on cost reduction opportunit
Slide 29: Questions and Answers
Questions and Answers Full Year 2014 & 4th Quarter 2014 Earnings Webcast
Slide 30: Full Year 2014 Earnings Webcast
Full Year 2014 Earnings Webcast February 27, 2015. Buenos Aires, Argentina