SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 6-K

 

 

Report of Foreign Issuer

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

of the Securities Exchange Act of 1934

For the month of May, 2022

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  ☒            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  ☒

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  ☒

 

 

 

 

CONTENT

 

1. MAIN HIGHLIGHTS			3
2. ANALYSIS OF CONSOLIDATED RESULTS			4
3. EBITDA AND ADJUSTED EBITDA RECONCILIATION			6
4. ANALYSIS OF RESULTS BY BUSINESS SEGMENT			7
4.1. UPSTREAM			7
4.2. DOWNSTREAM			11
4.3. GAS AND POWER			14
4.4. CORPORATE AND OTHER			15
4.5. CONSOLIDATION ADJUSTMENTS			16
5. LIQUIDITY AND SOURCES OF CAPITAL			16
5.1. CASH FLOW SUMMARY			16
5.2. NET DEBT			17
6. TABLES AND NOTES			19
6.1. CONSOLIDATED STATEMENT OF INCOME			19
6.2. CONSOLIDATED BALANCE SHEET			21
6.3. CONSOLIDATED STATEMENT OF CASH FLOW			22
6.4. MAIN PHYSICAL MAGNITUDES			24

 

 

2

 

Basis of Presentation

From 3Q20 onwards, the Earnings Release is expressed in U.S. dollars to facilitate the reading of results. YPF has defined the U.S. dollar as its functional currency and subsidiaries having the Argentine Peso as functional currency were adjusted for inflation, corresponding to a hyperinflationary economy, in accordance with IAS guidelines. Unless otherwise indicated, the calculation of all Income Statement figures in U.S. dollars are calculated as the sum of: (1) YPF S.A. individual financial results expressed in Argentine pesos divided by the average exchange rate of the period; and (2) the financial results of YPF S.A.’s subsidiaries expressed in Argentine pesos divided by the exchange rate at the end of period. Cash Flow items were converted to U.S. dollars using the average exchange rate for each period; whereas Balance Sheet items were converted to U.S. dollars using the end of period exchange rate for each period. The accumulated financial information presented in this document is calculated as the sum of the quarters for each period.

Robust results amid continuous recovery in O&G production, maintaining positive free cash flow while delivering on our ambitious CAPEX plan.

 

Summary Consolidated Financials Unaudited Figures, in US$ million		1Q21				4Q21				1Q22				Y/Y Δ				Q/Q Δ
Revenues			2,648				3,620				3,635				37.3	%			0.4	%
EBITDA			825				628				1,035				25.5	%			64.9	%
Adjusted EBITDA			767				834				972				26.8	%			16.6	%
Operating income before impairment of assets			78				(83	)			380				388.4	%			N/A
Operating income			78				(196	)			380				388.4	%			N/A
Net income before impairment of assets			(25	)			320				248				N/A				-22.4	%
Net income			(25	)			247				248				N/A				0.6	%
EPS			(0.06	)			0.63				0.64				N/A				1.6	%
Capex			487				908				748				53.5	%			-17.7	%
FCF			284				143				391				37.5	%			174.2	%
Cash and cash equivalents			995				1,108				1,329				33.6	%			20.0	%
Total debt			7,747				7,379				7,241				-6.5	%			-1.9	%

EBITDA = Operating income + Depreciation of PP&E + Depreciation of the right of use assets + Amortization of intangible assets + Unproductive exploratory drillings + (Reversal) / Deterioration of PP&E. Adjusted EBITDA = EBITDA that excludes IFRS 16 and IAS 29 effects +/- one-off items. EPS attributable to shareholders of the parent company (basic and diluted). FCF = Cash flow from Operations less capex (Investing activities), M&A (Investing activities), and interest and leasing payments (Financing activities).

1. MAIN HIGHLIGHTS

 

•

Adjusted EBITDA reached US$972 million, expanding 17% sequentially and 27% y/y, consolidating a margin of 27%, in line with the historical average of the last 10 years.

 

•

Hydrocarbon production continued with a positive trend totaling 506 Kboe/d, increasing 4.5% q/q and a staggering 16% y/y.

 

•

Shale activity was once again our focus, reaching a record level of production with an increase of 13% sequentially and almost doubling 1Q21 production.

 

•

Higher average realized prices on fuels´ domestic sales after adjustments in February and March, albeit not fully tracking international references. In addition, other Brent-priced products (about 20% of our consolidated revenues) experienced significant price appreciation during the 1Q22.

 

•

Domestic fuel demand decreased 5% q/q on seasonal dynamics, but standing 6% above pre-pandemic levels of 1Q19. Processing levels at our refineries expanded 1,4% sequentially, reaching an average utilization rate of 86% in 1Q22, and 90% in March.

 

•

OPEX contracted 8% q/q but expanded 29% y/y, primarily as a result of fully increased activity together with a negative evolution of variables such as inflation, wages, and currency devaluation.

 

•

CAPEX activity increased 53% y/y reaching US$748 million in the quarter, reaffirming guidance of 40% increase y/y, with an upward bias.

 

•

Cash flow was positive for the eighth consecutive quarter at US$391 million, further reducing our net debt to US$5,912 million, pushing the net leverage ratio down to 1.46x.

 

3

 

2. ANALYSIS OF CONSOLIDATED RESULTS

 

Consolidated Revenues Breakdown Unaudited Figures, in US$ million		1Q21				4Q21				1Q22				Y/Y Δ				Q/Q Δ
Diesel			921				1,284				1,283				39.3	%			0.0	%
Gasoline			613				796				817				33.2	%			2.7	%
Natural gas as producers (third parties)			259				338				327				25.8	%			-3.4	%
Other			552				782				748				35.5	%			-4.3	%
Total Domestic Market			2,346				3,199				3,175				35.3	%			-0.8	%
Jet fuel			24				62				85				253.0	%			37.7	%
Grain and flours			114				124				113				-0.6	%			-8.4	%
Crude oil			6				13				5				-13.7	%			-58.8	%
Petchem & Other			158				223				257				62.8	%			15.5	%
Total Export Market			302				421				461				52.6	%			9.5	%
Total Revenues			2,648				3,620				3,635				37.3	%			0.4	%

During 1Q22, revenues totaled US$3,635 million, almost flat compared to 4Q21 and increasing by 37.3% compared to 1Q21. On a sequential basis, higher prices on fuels´ retail domestic sales (about 50% of total revenues) and, even more pronounced, on wholesale domestic fuels (about 10% of total revenues) and products that correlate closely with international prices, such as lubricants, jet fuel, propane, petrochemicals and virgin naphta (about 20% of total revenues), were offset by lower volumes dispatched of gasoline and diesel.

 

•

Total diesel revenues in the domestic market (retail and wholesale) – 35% of total revenues – remained stable sequentially with higher average prices of 7.4% and lower volumes sold of 6.9%. Considering that the 1Q21 was partially affected by the pandemic, it is worth noting that diesel volumes dispatched in 1Q22 stood 9% above 1Q2019.

 

•

Gasoline sales in the local market (all retail) – 22% of total sales – increased 2.7% q/q, driven by higher average prices of 5.7%, partially offset by a decrease in volumes sold of 2.9%, but standing 3,5% above 1Q2019.

 

•

Natural gas revenues as producers sold to third parties in the domestic market – 9% of total sales – decreased 3.4% q/q mainly due to a 2.7% decline in average prices, and slightly lower volumes of 0.7%.

 

•

Other domestic sales decreased 4.3% q/q mainly due to lower seasonal sales of fertilizers, partially offset by higher prices of international-priced products and the continuous recovery trend in jet fuel local sales.

 

•

Export revenues increased 9.5% q/q mainly due to higher exports of jet fuel, petrochemicals and fuel oil, all benefiting from higher international prices, partially offset by lower seasonal exports of grain and flours.

 

4

 

Consolidated Costs Breakdown Unaudited Figures, in US$ million		1Q21				4Q21				1Q22				Y/Y Δ				Q/Q Δ
Lifting cost			(411	)			(529	)			(534	)			29.8	%			0.9	%
Other Upstream			(59	)			(57	)			(56	)			-4.8	%			-1.8	%
Refining & Logistics			(229	)			(293	)			(289	)			26.2	%			-1.4	%
Other Downstream			(98	)			(134	)			(108	)			10.5	%			-19.7	%
G&P, Corpo. & Other			(65	)			(191	)			(126	)			94.2	%			-34.3	%
Total OPEX			(861	)			(1,205	)			(1,112	)			29.1	%			-7.7	%
Depreciation & Amortization			(747	)			(708	)			(651	)			-12.9	%			-8.0	%
Royalties			(171	)			(209	)			(216	)			26.0	%			3.3	%
Other			(94	)			(135	)			(123	)			30.9	%			-9.2	%
Total Other Costs			(1,012	)			(1,051	)			(989	)			-2.2	%			-5.9	%
Fuels imports			(75	)			(370	)			(334	)			346.2	%			-9.8	%
Crude oil purchases to third parties			(252	)			(288	)			(256	)			1.4	%			-11.2	%
Biofuel purchases			(108	)			(188	)			(167	)			54.5	%			-11.0	%
Non-oil agro purchases			(118	)			(221	)			(196	)			65.6	%			-11.3	%
Other purchases			(166	)			(198	)			(191	)			15.1	%			-3.8	%
Stock variations			25				80				3				-88.3	%			-96.3	%
Total Purchases & Stock Variations			(694	)			(1,186	)			(1,141	)			64.4	%			-3.8	%
Other operating results, net			(3	)			(262	)			(14	)			357.4	%			-94.8	%
Impairment of assets			—				(112	)			—				N/A				N/A
Operating Costs + Purchases + Impairment of Assets			(2,570	)			(3,815	)			(3,256	)			26.7	%			-14.7	%

Stock variations include holding results of US$66 million in 1Q21, US$75 million for 4Q21 and US$(18) million for 1Q22.

In terms of costs, during the quarter we managed to reduce our OPEX by 7,7% sequentially, primarily driven by the reduction in logistics costs on the back of lower volumes sold of diesel and gasoline, even though inflationary and salary pressures during 1Q22 pushed our cost structure higher in dollar terms given the context of a slow pace of currency devaluation. Similarly, total OPEX increased 29,1% against 1Q21, driven by the inflationary process described above and an increase in our overall business activity, considering that activity in 1Q21 had not fully recovered from the effects of the pandemic.

Total Purchases & Stock Variations decreased 3.8% sequentially. The q/q decrease in purchases, a category highly correlated with demand levels for refined products, was mainly driven by:

 

•

Fuel imports decreased 9.8% primarily due to a reduction in volumes imported of premium gasoline and diesel of 21.5% on the back of the lower demand, partially offset by higher prices of 11%.

 

•

Crude oil purchases fell 11.2% on lower volumes, mainly due to higher oil production within our upstream segment and the impact of Q1 2022 having 2 fewer days than Q4 2021, even though refinery daily processing levels increased sequentially by 1.7%.

 

•

Biofuel purchases decreased 11.0%, with purchases of biodiesel falling 10% and purchases of bioethanol dropping 12%, driven by lower volumes acquired for both products aligned to the sequential decrease in gasoline and diesel demand during the quarter, partially offset by higher prices for both products (+3.0% biodiesel and +4.5% bioethanol).

 

•

Non-oil agro purchases decreased 11.3% mainly driven by a 40.2% seasonal contraction in purchases of fertilizer, partially offset by an increase of 19.3% in purchases of grain receipts.

In terms of our inventories, a positive stock variation of US$3 million was recorded during 1Q22, mainly due to an increase in stock volumes, partially offset by a decrease in the replacement cost of our inventories; in comparison with a positive stock variation of US$80 million during 4Q21, mainly due to an increase in the replacement cost of our inventories.

 

5

 

Consolidated Net Income Breakdown Unaudited Figures, in US$ million		1Q21				4Q21				1Q22				Y/Y Δ				Q/Q Δ
Operating income			78				(196	)			380				388.4	%			N/A
Interests in companies and joint ventures			58				160				115				98.9	%			-28.2	%
Financial results, net			(49	)			15				(44	)			-10.7	%			N/A
Income tax			(112	)			267				(203	)			81.0	%			N/A
Net Income			(25	)			247				248				N/A				0.6	%
Net Income before impairment of assets			(25	)			320				248				N/A				-22.4	%

Financial results, net, for 1Q22 represented a US$44 million loss compared to the gain of US$15 million posted in 4Q21, mainly as a result of an positive extraordinary charge related to the provision for hydrocarbon wells abandonment obligations in 4Q21 partially offset by higher net FX gains and lower negative interests which remained at minimum levels over the last years

As a result of the operating and financial evolution, earnings before taxes for 1Q22 reached positive US$451 million increasing more than 100% q/q while net income for the quarter resulted in a gain of US$248 million, compared to the gain of US$247 million in 4Q21.

3. EBITDA AND ADJUSTED EBITDA RECONCILIATION

Adjusted EBITDA for 1Q22 totaled US$972 million, showing an increase of 16.6% sequentially and growing 26.8% in comparison with 1Q21. The sequential expansion was partially supported by higher realization prices across the board, including higher prices of diesel and gasoline and other international-priced products, the increase in oil and gas production, and lower OPEX.

The reconciliation between EBITDA and Adjusted EBITDA is presented in the tables below.

 

Reconciliation of Adjusted EBITDA Unaudited Figures, in US$ million		1Q21				4Q21				1Q22				Y/Y Δ				Q/Q Δ
Net Income			(25	)			247				248				N/A				0.6	%
Financial results, net			49				(15	)			44				-10.7	%			N/A
Interests in companies and joint ventures			(58	)			(160	)			(115	)			98.9	%			-28.2	%
Income tax			112				(267	)			203				81.0	%			N/A
Unproductive exploratory drillings			—				4				5				N/A				33.7	%
Depreciation & amortization			747				708				651				-12.9	%			-8.0	%
Impairment of assets			—				112				—				N/A				N/A
EBITDA			825				628				1,035				25.5	%			64.9	%
Leasing			(61	)			(62	)			(65	)			6.5	%			3.5	%
Other adjustments			2				269				2				-28.5	%			-99.4	%
Adjusted EBITDA			767				834				972				26.8	%			16.6	%

 

EBITDA breadkdown by segment Unaudited Figures, in US$ million		Upstream				Downstream				Gas & Energy				Corporate & Other				Consolid. Adjustments				Total
Operating income			219				310				3				(60	)			(92	)			380
Depreciation & amortization			476				134				22				20				(1	)			651
Unproductive exploratory drillings			5				—				—				—				—				5
Impairment of assets			—				—				—				—				—				—
EBITDA			699				444				25				(40	)			(93	)			1,035
Leasing			(37	)			(19	)			(8	)			—				—				(65	)
Other adjustments			0				1				(0	)			1				—				2
Adjusted EBITDA			662				425				17				(39	)			(93	)			972

 

6

 

The following chart summarizes the main variations of Adj. EBITDA by business segment between 1Q22 and 4Q21:

 

4. ANALYSIS OF RESULTS BY BUSINESS SEGMENT

4.1. UPSTREAM

 

Upstream Operating data Unaudited Figures		1Q21				4Q21				1Q22				Y/Y Δ				Q/Q Δ
Net Production Breakdown
Crude Production (Kbbld)			207.7				216.1				222.1				7.0	%			2.8	%
Conventional			158.3				149.9				148.7				-6.0	%			-0.8	%
Shale			46.4				62.9				70.4				51.6	%			11.8	%
Tight			3.0				3.3				3.1				3.2	%			-7.8	%
NGL Production (Kbbld)			29.5				30.0				44.2				50.0	%			47.6	%
Conventional			16.3				11.3				15.8				-3.3	%			39.4	%
Shale			12.0				17.6				26.9				124.3	%			52.6	%
Tight			1.2				1.0				1.6				30.1	%			50.5	%
Gas Production (Mm3d)			31.8				37.8				38.1				19.8	%			0.6	%
Conventional			18.0				16.1				15.5				-14.1	%			-3.8	%
Shale			6.4				14.4				15.3				140.3	%			6.3	%
Tight			7.4				7.4				7.3				-1.1	%			-0.9	%
Total Production (Kboed)			437.0				484.2				505.8				15.7	%			4.5	%
Conventional			288.0				262.5				261.9				-9.1	%			-0.2	%
Shale			98.4				170.9				193.3				96.5	%			13.1	%
Tight			50.6				50.7				50.6				-0.1	%			-0.3	%
Average realization prices
Crude Oil (USD/bbl)			50.1				57.8				58.9				17.5	%			1.9	%
Natural Gas (USD/MMBTU) (*)			2.9				3.1				3.1				5.7	%			-1.3	%

 

(*)	Average realization price for third parties

Total hydrocarbon production increased 4.5% sequentially, mainly driven by the continuous growing trend in crude oil shale production of 12% and an expansion of 47.6% in NGL production due to the temporary shutdown of our subsidiary MEGA during 4Q21. On a y/y basis, we achieved a remarkable growth of 15.7%, driven by an outstanding expansion from our shale blocks, with shale oil increasing by 52% all the while shale gas expanded 140%. As a result, shale accounted for 38% of our total consolidated production in 1Q22, growing from 22% only a year ago.

 

7

 

Average daily crude oil production increased 2.8% q/q, driven by a 11.8% increase in shale, which was slightly offset by a contraction in our conventional fields by -0.8%, where positive results in tertiary recovery were not enough to fully mitigate the natural decline rate of our mature fields. In that sense, tertiary recovery at Manantiales Behr recorded an increase of 5,4% sequentially, reaching a new record high in total oil production at the block of 25,2kbbl/d in March, with 7 Polymer Injection Units (PIUs) in operation to expand EOR (Enhanced Oil Recovery) production in the area, while we are working to set an additional unit that will be ready by 2Q22. Separately, with regards to our unconventional production, it is worth highlighting that during the first quarter we drilled 1 delineation well in the Lajas Este block, a field outside our oil hub core, as part of our strategy to expand the unconventional production in undeveloped areas. Within this block, another delineation well was drilled in April and the 2 wells are planned to be fractured in July 2022 and expected to be tied-in and producing before the end of the year.

On the natural gas side, average daily production increased 0.6% q/q, driven by a 6.3% increase in shale, which was offset by a contraction in our conventional fields by 3.8% as a result, primarily, of the natural decline on the Loma la Lata and Estación Fernández Oro assets.

In terms of midstream oil, we remained focused on the works needed to de-bottlenecking the continuous expansion of Vaca Muerta. In that sense, during 1Q22, we have been working, through our subsidiary Oldelval, in the revamping of 4 compression stations that have been idled for over 10 years, which were completed in April 2022, adding 6 thousand cubic meters a day (about 38 kbbl/d) of additional evacuation capacity to Puerto Rosales (about +17%).

Oil and gas realization prices during the quarter remained relatively stable. Our average realization oil price increased by 1.9% on a sequential basis, to about U$S59 per barrel, only partially benefiting from the rally in international prices, as local crude continued being negotiated between local producers and refiners in a way to smooth out the impact of the volatility in international reference prices into local pump prices. On the gas side, the average price for third parties for the quarter was US$3.1/MMBTU, almost flat q/q and expanding 5,7% y/y, supported by better prices in the industrial and compressed natural gas segments.

Total segment revenues for 1Q22 reached US$1,539 million, an increase of 1.2% compared to 4Q21 and +23.4% y/y.

 

•

Crude oil revenues remained flat q/q, as lower total volumes due to the impact of 2 fewer days of the 1Q22 against 4Q21 (besides higher daily average) daily production, were compensated by a modest increase in crude oil prices of 1.9%.

 

•

Natural gas revenues expanded 1.5% q/q due to higher volumes of 2.8%, partially offset by lower average realization prices of 1.4%.

 

8

 

Upstream Financials Unaudited Figures, in US$ million		1Q21				4Q21				1Q22				Y/Y Δ				Q/Q Δ
Crude oil			950				1,154				1,152				21.2	%			-0.2	%
Natural gas			285				381				387				35.6	%			1.5	%
Other			12				(14	)			1				-92.5	%			N/A
Revenues			1,247				1,521				1,539				23.4	%			1.2	%
Depreciation & amortization			(581	)			(530	)			(476	)			-18.2	%			-10.3	%
Lifting cost			(411	)			(529	)			(534	)			29.8	%			0.9	%
Royalties			(171	)			(209	)			(216	)			26.0	%			3.3	%
Exploration expenses			(2	)			(7	)			(10	)			497.5	%			56.7	%
Other			(64	)			(338	)			(85	)			33.9	%			-74.8	%
Operating income before impairment of assets			19				(91	)			219				1081.4	%			N/A
Impairment of assets			—				(112	)			—				N/A				N/A
Operating income			19				(203	)			219				1081.4	%			N/A
Depreciation & amortization			581				530				476				-18.2	%			-10.3	%
Unproductive exploratory drillings			—				4				5				N/A				33.7	%
Impairment of assets			—				112				—				N/A				N/A
EBITDA			600				443				699				16.6	%			57.9	%
Leasing			(39	)			(38	)			(37	)			-3.7	%			-2.2	%
Other adjustments			0				261				(0	)			N/A				N/A
Adjusted EBITDA			561				665				662				18.0	%			-0.5	%
Capex			425				695				606				42.6	%			-12.8	%
Unit Cash Costs Unaudited Figures, in US$/boe		1Q21				4Q21				1Q22				Y/Y Δ				Q/Q Δ
Lifting Cost			10.5				11.9				11.7				12.2	%			-1.3	%
Royalties and other taxes			4.8				5.3				5.2				7.4	%			-1.9	%
Other Costs			1.7				1.7				1.5				-11.3	%			-13.2	%
Total Cash Costs (US$/boe)			17.0				18.9				18.4				8.5	%			-2.5	%

Regarding our cost structure on a per unit basis, total cash costs increased 8.5% y/y and decreased 2.5% q/q, due to the following:

 

•

Reduction in lifting costs by 1.3% q/q despite the impact of salary increases previously negotiated with labor unions as part of the 2021/22 agreement, and the high inflation rate combined with a slower pace of local currency depreciation. In comparison with 1Q21, lifting costs increased 12.2%, driven by the inflationary process described above and as a result of fully normalized activities. When breaking down our lifting costs by type of operation in 1Q22, our unconventional activities averaged US$3.9 per BOE while our conventional activities averaged US$17.6 per BOE.

 

•

Royalties and other taxes decreased 1.9% sequentially, where natural gas royalties decreased 5.6%, partially offset by an increase in crude oil royalties of 3.1% due to higher realization prices.

 

•

The decrease in “Other Costs” was mainly explained by some extraordinary charges recorded during 4Q21.

In summary, Adjusted EBITDA for the upstream segment reached US$662 million during the quarter, remaining flat on a sequential basis but with an increase of 18% compared to 1Q21.

 

9

 

CAPEX:

Upstream capex during 1Q22 stood at US$606 million, a decrease of 12.8% sequentially but increasing 42.6% y/y, where almost 70% was allocated to drilling and workover activities, 26% to new facilities or the expansion of existing ones, and the remaining 4% to exploration and other upstream activities.

In terms of activity within our unconventional upstream operations, in the first quarter of the year we completed a total of 38 new horizontal wells in our operated blocks, 29 shale oil and 7 shale gas wells, slightly above the activity performed the previous quarter with 36 horizontal wells. However, this activity was lower than we had projected given the impact of COVID-related delays in January and weather-related restrictions in February. In addition, we also faced some delays in mobilizing resources into new facilities at one of our non-operated blocks, expecting to catch-up in coming months.

On the conventional side, the activity continued to be focused on integrity investments in order to reduce risks and gain reliability in certain facilities as well as mobilizing resources into tertiary recovery, where we continued focusing in the main project at Manantiales Behr and starting pilots in the areas of El Trébol, Los Perales and Cañadón León.

 

 

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4.2. DOWNSTREAM

 

Downstream Operating data Unaudited Figures		1Q21				4Q21				1Q22				Y/Y Δ				Q/Q Δ
Crude processed (Kbbld)			273.4				277.9				282.6				3.4	%			1.7	%
Refinery utilization (%)			83	%			85	%			86	%			280	bps			142	bps
Sales volume
Sales of refined products (Km3)			4,140				4,651				4,505				8.8	%			-3.1	%
Total domestic market			3,901				4,291				4,154				6.5	%			-3.2	%
of which Gasoline			1,240				1,452				1,410				13.8	%			-2.9	%
of which Diesel			1,811				2,181				2,030				12.1	%			-6.9	%
Total export market			239				360				351				46.7	%			-2.6	%
Sales of petrochemical products (Ktn)			247				193				215				-13.1	%			11.3	%
Domestic market			166				171				180				8.5	%			5.1	%
Export market			81				22				35				-57.2	%			60.2	%
Sales of grain, flours and oils (Ktn)			294				238				271				-7.9	%			13.7	%
Domestic market			11				7				7				-34.3	%			4.9	%
Export market			284				232				264				-6.9	%			14.0	%
Sales of fertilizers (Ktn)			186				221				104				-44.0	%			-52.9	%
Domestic market			186				221				104				-44.0	%			-52.9	%
Net average prices of fuels in the domestic market
Gasoline (USD/m3)			452				500				532				17.5	%			6.4	%
Diesel (USD/m3)			481				554				596				23.8	%			7.5	%

Net Average domestic prices for gasoline and diesel are net of taxes, commissions, commercial bonuses and freights.

Nominal capacity at 328.1 Kbbl/d since 1Q21.

Crude oil processed during the quarter stood at 282.6 Kbbl/d, an increase of 1.7% q/q and 3.4% y/y with a utilization rate of 86%. In a sequential basis, our three refineries maintained the crude oil processed almost unchanged, with the exception of Lujan de Cuyo refinery that recorded a minor increase. It is worth noting that processing levels during the quarter were affected by the complex negotiations with local independent oil producers aiming to maximize their exports instead of selling in the local market, on the back of better realized export prices. Nevertheless, during March, we achieved a utilization rate of 90%, as constructive dialogue with independent producers in order to minimize fuels´ imports.

Net average diesel prices in the domestic market in dollar terms increased 7.5% q/q, while net average gasoline prices increased 6.4% q/q. The sequential growth was attributable to the resumption of price adjustments at the pump that took place in February and March, in line with the strategy announced aiming at compensating for the depreciation of the currency while also managing to partially track rallying international reference prices.. In addition, we have continued with the strategy of reducing the discounts at the wholesale segments and even moving wholesale prices above retail prices where, in some particular segments/cases, we were able to fully translate international parities to local clients.

 

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Downstream Financials Unaudited Figures, in US$ million		1Q21				4Q21				1Q22				Y/Y Δ				Q/Q Δ
Diesel			921				1,284				1,283				39.3	%			0.0	%
Gasoline			613				796				817				33.2	%			2.7	%
Other domestic market			462				619				622				34.6	%			0.4	%
Export market			276				390				422				52.9	%			8.2	%
Revenues			2,273				3,089				3,144				38.3	%			1.8	%
Depreciation & amortization			(134	)			(141	)			(134	)			-0.2	%			-5.1	%
Refining & Logistics costs			(229	)			(293	)			(289	)			26.2	%			-1.4	%
Fuels imports			(75	)			(370	)			(334	)			346.2	%			-9.8	%
Crude oil purchases (intersegment + third parties)			(1,203	)			(1,442	)			(1,434	)			19.2	%			-0.5	%
Biofuel purchases			(108	)			(188	)			(167	)			54.5	%			-11.0	%
Non-oil agro purchases			(118	)			(221	)			(196	)			65.6	%			-11.3	%
Other			(207	)			(298	)			(280	)			35.4	%			-6.0	%
Operating income before impairment of assets			199				136				310				56.0	%			128.1	%
Impairment of assets			—				—				—				N/A				N/A
Operating income			199				136				310				56.0	%			128.1	%
Depreciation & amortization			134				141				134				-0.2	%			-5.1	%
Impairment of assets			—				—				—				N/A				N/A
EBITDA			333				277				444				33.3	%			60.3	%
Leasing			(16	)			(19	)			(19	)			20.9	%			2.2	%
Other adjustments			1				(1	)			1				6.8	%			N/A
Adjusted EBITDA			317				257				425				33.9	%			65.7	%
Holding results from oil products			108				71				68				-36.8	%			-4.3	%
Adjusted EBITDA excl. holding results from oil products			210				185				357				70.2	%			92.5	%
Capex			51				168				105				104.6	%			-37.3	%

Revenues during 1Q22 totaled US$3,144 million, an increase of 1.8% compared to 4Q21, mainly driven by higher average prices of fuels and of international-priced products, partially offset by, among others, lower demand for gasoline and diesel.

Refining and logistics costs decreased 1.4% q/q, mainly as a result of lower regular maintenance works and reduced energy costs. Separately, fuel imports decreased 9.8%, primarily due to a decrease in volumes imported, partially offset by higher prices. Crude oil purchases (including inter-segment purchases to our Upstream operations) remained almost flat, where lower total crude oil processed in the quarter - considering the impact of Q1 2022 having 2 fewer days than Q4 2021 – was offset by higher crude oil realization price. Biofuel purchases decreased 11.0% driven by lower volumes acquired of biodiesel and bioethanol, aligned to the sequential decrease in gasoline and diesel demand. Non-oil agro purchases decreased 11.3%, mainly driven by a seasonal contraction in the purchases of fertilizer.

As a result, Downstream adjusted EBITDA, excluding holding results from oil products, totaled US$14.0 per barrel. Within the Downstream segment, Refining & Marketing adjusted EBITDA reached US$11.8 per barrel of crude processed. It is worth highlighting that these results came on the back of a benign pricing environment, primarily on Brent-related products such as petrochemicals, lubricants, jet fuel, LPG, etc., that represent around 25% of the Downstream revenues.

 

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