YPF’s Q1 2024 Financial Performance: An Impressive Increase in Profitability Driven by Higher Fuel Prices and Cost Reductions

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

During the same period, YPF’s adjusted profitability (EBITDA) reached 1,245 million dollars, reflecting an impressive 19% increase year-on-year. Revenues grew by just 2% to 4,310 million dollars, while investments fell by 4% to 1,252 million dollars. YPF’s results were driven by several factors such as 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 cost reduction of 16% in extraction to $12.9 per barrel of oil equivalent. Despite a decrease in local fuel demand by 11%, YPF managed to gain market share compared to its competitors due to lower production costs and higher prices. However, the company experienced a decline in consumption in the retail segment during April due to seasonal consumption patterns and increased competition from other companies offering similar products at lower prices.

Oil production for YPF remained stable at approximately 255 thousand barrels equivalent per day with shale oil production showing impressive growth of over 20% year-on-year. Exports of Medanito crude oil also increased significantly by over 20% compared to the previous year.

YPF executives will engage with investors through a virtual conference on their strategic plan and address questions from international banks and investment funds interested in investing more money into this successful company. Currently valued at over $11 billion dollars on the stock market with its share price at $24.38 per share, YPF has seen remarkable growth over the past six months following Javier Milei’s announcement as new President.